As filed with the Securities and Exchange Commission on April 26, 2011

Registration No. 33-56908

811-06032

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-4

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

Pre-Effective Amendment No. __

Post-Effective Amendment No. 39

and

REGISTRATION STATEMENT

UNDER

THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 86

Separate Account VA B

(Exact Name of Registrant)

TRANSAMERICA LIFE INSURANCE COMPANY

(Name of Depositor)

4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499

(Address of Depositor’s Principal Executive Offices)

Depositor’s Telephone Number, including Area Code

(319) 355-8330

Darin D. Smith, Esquire

Transamerica Life Insurance Company

4333 Edgewood Road, N.E.

Cedar Rapids, Iowa 52499-4520

(Name and Address of Agent for Service)

Copy to:

Frederick R. Bellamy, Esquire

Sutherland Asbill & Brennan L.L.P.

1275 Pennsylvania Avenue, N.W.

Washington, D.C. 20004-2415

Title of Securities Being Registered:

Flexible Premium Variable Annuity Policies

It is proposed that this filing will become effective:

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

x       on May 1, 2011 pursuant to paragraph (b) of Rule 485

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

¨ on                          pursuant to paragraph (a)(1) of Rule 485

If appropriate, check the following box:

¨ this post-effective amendment designates a new effective date for a previously filed post-effective amendment.

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TRANSAMERICA FREEDOM^SM VARIABLE ANNUITY

Issued Through

SEPARATE ACCOUNT VA B

By

TRANSAMERICA LIFE INSURANCE COMPANY

Prospectus

May 1, 2011

This flexible premium deferred annuity policy has many investment choices. There is a separate account that currently provides a means of investing in various underlying fund portfolios. There is also a fixed account, which offers interest at rates that are guaranteed by Transamerica Life Insurance Company. You can choose any combination of these investment choices. You bear the entire investment risk for all amounts you put in the separate account.

This prospectus and the underlying fund prospectuses give you important information about the policies and the underlying fund portfolios. Please read them carefully before you invest and keep them for future reference.

If you would like more information about the Transamerica Freedom^SM Variable Annuity, you can obtain a free copy of the Statement of Additional Information (SAI) dated May 1, 2011. Please call us at (800) 525-6205 or write us at: Transamerica Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001. A registration statement, including the SAI, has been filed with the Securities and Exchange Commission (SEC) and the SAI is incorporated herein by reference. More information about the variable annuity can be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. You may obtain information about the operation of the public reference room by calling the SEC at 1-800-732-0330. The SEC also maintains a web site (http://www.sec.gov) that contains the prospectus, the SAI, material incorporated by reference, and other information. The table of contents of the SAI is included at the end of this prospectus.

Please note that the policies and the separate account investment choices:

• are not bank deposits

• are not federally insured

• are not endorsed by any bank or government agency

• are not guaranteed to achieve their goal

• are subject to risks, including loss of premium

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 ASSOCIATED WITH THE SUBACCOUNTS

AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS)

Managed by Invesco Advisers, Inc.

Invesco V.I. Basic Value Fund – Series II Shares

Invesco V.I. Capital Appreciation Fund – Series II Shares

ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

Managed by AllianceBernstein L.P.

AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

AllianceBernstein Growth and Income Portfolio – Class B

AllianceBernstein Large Cap Growth Portfolio – Class B

AMERICAN FUNDS INSURANCE SERIES^® TRUST

Managed by Capital Research and Management Company^SM

American Funds – Asset Allocation Fund – Class 2

American Funds – Bond Fund – Class 2

American Funds – Growth Fund – Class 2

American Funds – Growth-Income Fund – Class 2

American Funds – International Fund – Class 2

FIDELITY^® VARIABLE INSURANCE PRODUCTS FUND

Managed by Fidelity Management & Research Company

Fidelity VIP Balanced Portfolio – Service Class 2

Fidelity VIP Contrafund^® Portfolio – Service Class 2

Fidelity VIP Equity-Income Portfolio – Service Class 2

Fidelity VIP Growth Portfolio – Service Class 2

Fidelity VIP Mid Cap Portfolio – Service Class 2

Fidelity VIP Value Strategies Portfolio – Service Class 2

FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

Managed by Franklin Advisers, Inc.

Franklin Income Securities Fund – Class 2

Managed by Franklin Mutual Advisers, LLC

Mutual Shares Securities Fund – Class 2

Managed by Templeton Investment Counsel LLC

Templeton Foreign Securities Fund – Class 2

FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

Fund Administrator: Franklin Templeton Services, LLC

Franklin Templeton VIP Founding Funds Allocation Fund – Class 4

GE INVESTMENTS FUNDS, INC.

Managed by GE Asset Management, Inc.

GE Investments Total Return Fund – Class 3

JANUS ASPEN SERIES

Managed by Janus Capital Management LLC

Janus Aspen – Enterprise Portfolio – Service Shares

Janus Aspen – Worldwide Portfolio – Service Shares

MFS^® VARIABLE INSURANCE TRUST

Managed by MFS^® Investment Management

MFS^® New Discovery Series – Service Class

MFS^® Total Return Series – Service Class

TRANSAMERICA SERIES TRUST

Portfolio Construction Manager: Morningstar Associates, LLC

Transamerica Asset Allocation – Conservative VP – Service Class

Transamerica Asset Allocation – Growth VP – Service Class

Transamerica Asset Allocation – Moderate VP – Service Class

Transamerica Asset Allocation – Moderate Growth VP – Service Class

Transamerica International Moderate Growth VP – Service Class

Subadvised by AEGON USA Investment Management, LLC

Transamerica AEGON Active Asset Allocation – ConservativeVP – Service Class

Transamerica AEGON Active Asset Allocation – Moderate VP – Service Class

Transamerica AEGON Active Asset Allocation – Moderate Growth VP – Service Class

Transamerica AEGON High Yield Bond VP – Service Class

Transamerica AEGON Money Market VP – Service Class

Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica Efficient Markets VP – Service Class

Transamerica Index 35 VP – Service Class

Transamerica Index 50 VP – Service Class

Transamerica Index 75 VP – Service Class

Transamerica Index 100 VP – Service Class

Subadvised by Alliance Bernstein L.P.

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

Subadvised by BlackRock Financial Management, Inc.

Transamerica BlackRock Tactical Allocation VP – Service Class

Subadvised by BlackRock Investment Management, LLC

Transamerica BlackRock Large Cap Value VP – Service Class

Subadvised by Foxhall Capital Management, Inc.

Transamerica Foxhall Emerging Markets/Pacific Rim VP – Service Class

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica Foxhall Global Growth VP – Service Class

Transamerica Foxhall Global Commodities & Hard Assets VP – Service Class

Subadvised by Hanlon Investment Management, Inc.

Transamerica Hanlon Balanced VP – Service Class

Transamerica Hanlon Growth VP – Service Class

Transamerica Hanlon Growth and Income VP – Service Class

Transamerica Hanlon Managed Income VP – Service Class

Subadvised by ING Clarion Real Estate Securities, LLC

Transamerica Clarion Global Real Estate Securities VP – Service Class

Subadvised by J.P. Morgan Investment Management Inc.

Transamerica JPMorgan Core Bond VP – Service Class

Transamerica JPMorgan Enhanced Index VP – Service Class

Transamerica JPMorgan Mid Cap Value VP – Service Class

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Transamerica JPMorgan Tactical Allocation VP – Service Class

Subadvised by J.P. Morgan Investment Management Inc. and BlackRock Financial Management, Inc.

Transamerica Multi-Managed Balanced VP – Service Class

Subadvised by Jennison Associates LLC

Transamerica Jennison Growth VP– Service Class

Subadvised by MFS^® Investment Management

Transamerica MFS International Equity VP – Service Class

Subadvised by Morgan Stanley Investment Management Inc.

Transamerica Morgan Stanley Active International AllocationVP – Service Class

Transamerica Morgan Stanley Capital Growth VP – Service Class

Transamerica Morgan Stanley Growth Opportunities VP – Service Class

Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class

Transamerica Multi Managed Large Cap Core VP – Service Class

Subadvised by Pacific Investment Management Company LLC

Transamerica PIMCO Real Return TIPS VP – Service Class

Transamerica PIMCO Total Return VP – Service Class

Subadvised by Systematic Financial Management L.P.

Transamerica Systematic Small/Mid Cap Value VP – Service Class

Subadvised by T. Rowe Price Associates, Inc.

Transamerica T. Rowe Price Small Cap VP – Service Class

Advised by Transamerica Asset Management, Inc.

Transamerica BlackRock Global Allocation VP – Service Class

Subadvised by Wellington Management Company, LLP

Transamerica WMC Diversified Equity VP – Service Class

Transamerica WMC Diversified Growth VP – Service Class

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TABLE OF CONTENTS

GLOSSARY OF TERMS		7
SUMMARY		9
ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES		15
1.	THE ANNUITY POLICY	20
2.	PURCHASE	20
	Policy Issue Requirements	20
	Premium Payments	21
	Initial Premium Requirements	21
	Additional Premium Payments	21
	Maximum Total Premium Payments	21
	Allocation of Premium Payments	22
	Policy Value	22
3.	INVESTMENT CHOICES	22
	The Separate Account	22
	Selection of Underlying Portfolios	26
	Addition, Deletion, or Substitution of Investments	27
	Static Allocation Models	28
	The Fixed Account	28
	Transfers	29
	Market Timing and Disruptive Trading	29
4.	PERFORMANCE	33
5.	EXPENSES	33
	Excess Interest Adjustment	33
	Mortality and Expense Risk Fees	33
	Premium Taxes	34
	Federal, State and Local Taxes	34
	Special Service Fees	34
	Transfer Fee	34
	Administrative Charges	34
	Initial Payment Guarantee	34
	Fund Facilitation Fee	34
	Additional Death Distribution	35
	Additional Death Distribution+	35
	Living Benefits Rider	35
	Retirement Income Choice® 1.2 Rider and Additional Options Fees	36
	Retirement Income Choice® 1.4 Rider and Additional Options Fees - This Rider is No Longer Available for New Sales	36
	Income Link® Rider Fee	37
	Retirement Income MaxSM Rider Fees	37
	Portfolio Fees and Expenses	37
	Revenue We Receive	37
6.	ACCESS TO YOUR MONEY	39
	Surrenders	39
	Delay of Payment and Transfers	40
	Excess Interest Adjustment	40
	Signature Guarantee	41
7.	ANNUITY PAYMENTS (THE INCOME PHASE)	41
	Annuity Payment Options	42
8.	DEATH BENEFIT	44
	When We Pay A Death Benefit	45
	When We Do Not Pay A Death Benefit	45
	Deaths After the Annuity Commencement Date	45
	Succession of Ownership	45
	Amount of Death Benefit	45
	Guaranteed Minimum Death Benefit	46
	Adjusted Partial Surrender	47
9.	TAXES	47
	Annuity Policies in General	47
	Qualified and Nonqualified Policies	47
	Surrenders-Qualified Policies Generally	48
	Surrenders-403(b) Policies	49
	Surrenders-Nonqualified Policies	49
	Taxation of Death Benefit Proceeds	50
	Annuity Payments	50
	Partial Annuitization	51
	Medicare Tax	51
	Diversification and Distribution Requirements	51
	Federal Defense of Marriage Act	51
	Federal Estate Taxes	52
	Generation-Skipping Transfer Tax	52
	Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010	52
	Annuity Purchases by Residents of Puerto Rico	52

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TABLE OF CONTENTS continued

	Annuity Policies Purchased by Nonresident Aliens and Foreign Corporations	52
	Transfers, Assignments or Exchanges of Policies	53
	Possible Tax Law Changes	53
	Separate Account Charges	53
	Foreign Tax Credits	53
	Guaranteed Lifetime Withdrawal Benefits	53
10.	ADDITIONAL FEATURES	53
	Systematic Payout Option	53
	Income Benefit Programs	54
	Initial Payment Guarantee	54
	Additional Death Distribution	55
	Additional Death Distribution+	56
	Nursing Care and Terminal Condition Withdrawal Option	57
	Unemployment Waiver	58
	Telephone Transactions	58
	Dollar Cost Averaging Program	58
	Asset Rebalancing	60
	Guaranteed Lifetime Withdrawal Benefits	60
	Living Benefits Rider	60
	Retirement Income Choice® 1.2 Rider	68
	Retirement Income Choice® 1.4 Rider - This Rider is No Longer Available for New Sales	80
	Income Link® Rider	89
	Retirement Income MaxSM Rider	97
11.	OTHER INFORMATION	103
	Ownership	103
	Beneficiary	103
	Right to Cancel Period	103
	Assignment	104
	Sending Forms and Transaction Requests in Good Order	104
	Mixed and Shared Funding	104
	Exchanges and Reinstatements	105
	Voting Rights	105
	Legal Proceedings	105
	Transamerica Life Insurance Company	105
	Financial Condition of the Company	106
	The Separate Account	107
	Distribution of the Policies	107
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION		110
APPENDIX
CONDENSED FINANCIAL INFORMATION		111
APPENDIX
POLICY VARIATIONS
APPENDIX
EXCESS INTEREST ADJUSTMENT EXAMPLES		124
APPENDIX
DEATH BENEFIT		128
APPENDIX
ADDITIONAL DEATH DISTRIBUTION RIDER — ADDITIONAL INFORMATION		131
APPENDIX
ADDITIONAL DEATH DISTRIBUTION+ RIDER - ADDITIONAL INFORMATION		132
APPENDIX
GUARANTEED LIFETIME WITHDRAWAL BENEFIT COMPARISON TABLE		133
APPENDIX
LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS		137
APPENDIX
GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS - RETIREMENT INCOME CHOICE® 1.2 RIDER AND RETIREMENT INCOME CHOICE® 1.4 RIDER (RETIREMENT INCOME CHOICE® 1.4 - NO LONGER AVAILABLE FOR NEW SALES)		144

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TABLE OF CONTENTS continued

APPENDIX
GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS - INCOME LINK® RIDER	150
APPENDIX
GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS - RETIREMENT INCOME MAXSM RIDER	152
APPENDIX
HYPOTHETICAL EXAMPLE OF THE WITHDRAWAL BASE CALCULATION - RETIREMENT INCOME MAXSM RIDER	155

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GLOSSARY OF TERMS

Accumulation Unit — An accounting unit of measure used in calculating the policy value in the separate account before the annuity commencement date.

Adjusted Policy Value — The policy value increased or decreased by any excess interest adjustment.

Administrative and Service Office — Transamerica Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001, (800) 525-6205.

Annuitant — The person on whose life any annuity payments involving life contingencies will be based.

Annuitize (Annuitization) — When you switch from the accumulation phase to the income phase and we begin to make annuity payments to you (or your designee).

Annuity Commencement Date — The date upon which annuity payments are to commence. This date may be any date after the policy date and may not be later than the last day of the policy month following the month after the annuitant attains age 95. The earliest annuity commencement date is at least thirty days after you purchase your policy. The annuity commencement date may have to be earlier for qualified policies and may be earlier if required by state law.

Annuity Payment Option — A method of receiving a stream of annuity payments selected by the owner.

Assumed Investment Return or AIR — The annual effective rate shown in the contract specifications section of the contract that is used in the calculation of each variable annuity payment.

Cash Value — The adjusted policy value less any rider fees (imposed upon surrender).

Excess Interest Adjustment — A positive or negative adjustment to amounts surrendered (both partial or full surrenders and transfers) or applied to annuity payment options from the fixed account guaranteed period options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by the Company since the date any payment was received by, or an amount was transferred to, the guaranteed period option. The excess interest adjustment can either decrease or increase the amount to be received by the owner upon full surrender or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively.

Fixed Account — One or more investment choices under the policy that are part of the Company’s general assets and are not in the separate account.

Free Amount — The amount that can be withdrawn each year without incurring any excess interest adjustment.

Guaranteed Lifetime Withdrawal Benefit — Any optional benefit under the policy that provides a guaranteed minimum withdrawal benefit, including the Living Benefits Rider, the Retirement Income Choice^® 1.2 Rider, the Income Link^® Rider or the Retirement Income Max^SM Rider.

Guaranteed Period Options — The various guaranteed interest rate periods of the fixed account which the Company may offer and into which premium payments may be paid or amounts transferred.

Owner (You, Your) — The person who may exercise all rights and privileges under the policy. The owner during the lifetime of the annuitant and before the annuity commencement date is the person designated as the owner in the information that we require to issue a policy.

Policy Date — The date shown on the policy data page attached to the policy and the date on which the policy becomes effective.

Policy Value — On or before the annuity commencement date, the policy value is equal to the owner’s:

• premium payments; minus

• gross partial surrenders (partial surrenders minus excess interest adjustments); plus

• interest credited in the fixed account; plus

• accumulated gains in the separate account; minus

• accumulated losses in the separate account; minus

• service charges, rider fees, premium taxes, transfer fees, and other charges, if any.

Policy Year — A policy year begins on the policy date and on each anniversary thereof.

7

Separate Account — Separate Account VA B, a separate account established and registered as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”), to which premium payments under the policies may be allocated.

Separate Account Value — The portion of the policy value that is invested in the separate account.

Subaccount — A subdivision within the separate account, the assets of which are invested in a specified underlying fund portfolio.

Valuation Period — The period of time from one determination of accumulation unit values and annuity unit values to the next subsequent determination of those values. Such determination shall be made on each business day.

Written Notice — Written notice, signed by the owner, that gives the Company the information it requires and is received in good order at the Administrative and Service Office. For some transactions, the Company may accept an electronic notice such as telephone instructions. Such electronic notice must meet the requirements for good order that the Company establishes for such notices.

You (Your) — the owner of the policy.

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SUMMARY

The sections in this summary correspond to sections in this prospectus, which discuss the topics in more detail.

1. THE ANNUITY POLICY

The flexible premium deferred variable annuity policy offered by Transamerica Life Insurance Company (the Company, we, us, or our) provides a way for you to invest on a tax-deferred basis in the following investment choices: various subaccounts of the separate account and the fixed account of the Company. The policy is intended to accumulate money for retirement or other long-term investment purposes.

This policy currently offers subaccounts that are listed under “Investment Choices” in this prospectus. Each subaccount invests exclusively in shares of one of the underlying fund portfolios. The policy value may depend on the investment experience of the selected subaccounts. Therefore, you bear the entire investment risk with respect to all policy value in any subaccount. You could lose the amount that you invest.

The fixed account offers an interest rate that the Company guarantees.

The policy, like all deferred annuity policies, has two phases: the “accumulation phase” and the “income phase.” During the accumulation phase, earnings accumulate on a tax-deferred basis and are taxed as ordinary income when you take them out of the policy. The income phase occurs when you annuitize and begin receiving regular annuity payments from your policy. The money you can accumulate during the accumulation phase will largely determine the payments you receive during the income phase.

2. PURCHASE

The initial premium payment for nonqualified policies must be at least $15,000 or more, and at least $1,000 for qualified policies, under most circumstances. You must obtain prior Company approval to purchase a policy with an amount less than the stated minimum. You can generally add as little as $50 at any time during the accumulation phase.

3. INVESTMENT CHOICES

You can allocate your premium payments to one of several underlying fund portfolios listed under Investment Choices in this prospectus and described in the underlying fund prospectuses. Depending upon their investment performance, you can make or lose money in any of the subaccounts.

You can also allocate your premium payments to the fixed account.

We currently allow you to transfer money between any of the investment choices during the accumulation phase. We reserve the right to impose a $10 fee for each transfer in excess of 12 transfers per policy year and to impose restrictions and limitations on transfers.

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4. PERFORMANCE

The value of the policy will vary up or down depending upon the investment performance of the subaccounts you choose.

5. EXPENSES

Note: The following section on expenses and the Annuity Policy Fee Table and expense examples only apply to policies issued after the date of this prospectus. See “Appendix – Policy Variations” for information about older policies.

No deductions are made from premium payments at the time you buy the policy so that the full amount of each premium payment is invested in one or more of your investment choices. If you select the Life with Emergency Cash^® annuity payment option, then you can surrender your policy after annuity payments have begun. A surrender charge of up to 4% of policy value will apply during the first four years after the annuity commencement date.

Full surrenders, partial surrenders, and transfers from a guaranteed period option of the fixed account may also be subject to an excess interest adjustment, which may increase or decrease the amount you receive. This adjustment may also apply to amounts applied to an annuity payment option from a guaranteed period option of the fixed account prior to the end of the guaranteed period option.

We deduct daily mortality and expense risk fees and administrative charges from the assets in each subaccount during the accumulation phase, at an annual rate (as a percentage of the subaccount’s value) that depend on the death benefit option that you select, as follows:

• 1.70% if you choose the Return of Premium Death Benefit

• 1.90% if you choose the Annual Step-Up Death Benefit

During the accumulation phase, we deduct an annual service charge of no more than $35 from the policy value on each policy anniversary and at the time of surrender. The charge is waived if either the policy value or the sum of all premium payments, minus all partial surrenders, is at least $50,000.

Upon full surrender, payment of a death benefit, or when annuity payments begin, we will deduct state premium taxes, if applicable. State premium taxes currently range from 0% to 3.50%, depending on the state.

If you elect the Initial Payment Guarantee feature when you annuitize, then there is a daily fee (during the income phase) currently equal to an annual rate of 1.25% of the daily net asset value in the subaccounts.

We deduct a daily fund facilitation fee from the assets in certain investment choices at an annual rate (as a percentage of the subaccount’s value) as follows:

• 0.30% if you choose the American Funds – Asset Allocation Fund – Class 2

• 0.30% if you choose the American Funds – Bond Fund – Class 2

• 0.30% if you choose the American Funds – Growth Fund – Class 2

• 0.30% if you choose the American Funds – Growth-Income Fund – Class 2

• 0.30% if you choose the American Funds – International Fund – Class 2

• 0.20% if you choose the AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

• 0.20% if you choose the GE Investments Total Return Fund – Class 3

• 0.15% if you choose the Franklin Templeton VIP Founding Funds Allocation Fund – Class 4

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• 0.10 % if you choose the Transamerica BlackRock Global Allocation VP – Service Class

If you elect the Additional Death Distribution (“ADD”), then there is an annual rider fee during the accumulation phase of 0.25% of the policy value.

If you elect the Additional Death Distribution+ (“ADD+”), then there is an annual rider fee during the accumulation phase of 0.55% of the policy value.

If you elect the Living Benefits Rider, then there is an annual rider fee during the accumulation phase of 0.90% of the “principal back” total withdrawal base on each anniversary (“rider anniversary”) of the date the rider was elected.

If you elect the Retirement Income Choice^® 1.2 Rider, there is an annual rider fee during the accumulation phase of 1.20% (of the withdrawal base charged quarterly) if you elect the Open Allocation option, and 0.45% to 1.40% if you elect the Designated Allocation option depending on what designated investment options you choose. For each additional option you elect with the rider, you will be charged a quarterly fee during the accumulation phase that is also a percentage of the withdrawal base; this fee is in addition to the rider fee for the base benefit.

If you elect the Income Link^® Rider, there is a rider fee during the accumulation phase of 0.90% (on an annual basis) of the withdrawal base charged quarterly.

If you elect the Retirement Income Max^SM Rider, there is a quarterly rider fee during the accumulation phase of 1.00% annually.

The value of the net assets of the subaccounts will reflect the management fee and other expenses incurred by the underlying fund portfolios.

6. ACCESS TO YOUR MONEY

You can generally take out $500 or more anytime during the accumulation phase (except under certain qualified policies).

You may have to pay income tax and a tax penalty on any money you take out.

If you have policy value in the fixed account, you may take out any cumulative interest credited free of excess interest adjustments.

Access to amounts held in qualified policies may be restricted or prohibited by law or regulation or the terms of the policy.

Surrenders are not generally permitted during the income phase unless you elect the Life with Emergency Cash^® annuity payment option.

Partial surrenders will reduce your policy value. Depending on its amount and timing, a partial surrender may considerably reduce or eliminate some of the benefits and guarantees provided by your Contract. You should carefully consider whether a partial surrender under a particular circumstance will have a negative impact to your benefits or guarantees. The impact of partial and full surrenders (generally) on your benefits and guarantees is discussed in the corresponding sections of the prospectus describing such benefits and guarantees.

7. ANNUITY PAYMENTS (THE INCOME PHASE)

The policy allows you to receive income under one of several annuity payment options. You may choose from fixed payment options, variable payment options, or a combination of both. If you select a variable payment option, then the dollar amount of your annuity payments may go up or down.

11

However, the Initial Payment Guarantee is available for an extra fee and it guarantees a minimum amount for each variable annuity payment.

8. DEATH BENEFIT

If the sole annuitant dies before the income phase begins, then the beneficiary will generally receive a death benefit. If the owner is not the annuitant, then no death benefit is paid if the owner dies; however required distribution rules require that the policy value be distributed upon the death of any owner.

Naming different persons as owner and annuitant can affect to whom and whether amounts will be paid. Use care when naming owners, annuitants and beneficiaries, and consult your agent if you have questions.

When you purchase a policy you may generally choose an optional guaranteed minimum death benefit:

• Annual Step-Up Death Benefit

Charges are lower if you do not choose an optional guaranteed minimum death benefit.

After the policy is issued, a guaranteed minimum death benefit cannot be added, and the death benefit cannot be changed.

9. TAXES

Earnings, if any, are generally not taxed until taken out. If you take money out of a nonqualified policy during the accumulation phase, earnings come out first for federal tax purposes, and are taxed as ordinary income. For nonqualified and certain qualified policies, payments during the income phase may be considered partly a return of your original investment so that part of each payment may not be taxable as income. For qualified policies, payments during the income phase are, in many cases, considered as all taxable income. If you are younger than 59 ¹/2 when you take money out, you may incur a 10% federal penalty tax on the taxable earnings.

10. ADDITIONAL FEATURES

This policy has additional features that might interest you. These features may not be available for all policies, may vary for certain policies, may not each be available in combination with other optional benefits under the policy, and may not be suitable for your particular situation.

These features include, but are not limited to, the following:

• You can arrange to have money automatically sent to you monthly, quarterly, semi-annually or annually while your policy is in the accumulation phase. This feature is referred to as the “Systematic Payout Option” (“SPO”). Amounts you receive may be included in your gross income, and in certain circumstances, may be subject to penalty taxes.

• You can elect an optional feature at the time of annuitization that guarantees your variable annuity payments will never be less than a percentage of the initial variable annuity payment. This feature is called the “Initial Payment Guarantee” (“IPG”). There is an extra charge for this feature.

• You may elect one of two optional riders that might pay an additional amount on top of the policy death benefit, in certain circumstances. These features are called the “Additional Death Distribution” (“ADD”) and “Additional Death Distribution+” (“ADD+”). There is an extra charge for these riders.

• Under certain medically related circumstances, you may surrender all or part of the policy value

12

without any excess interest adjustment. This feature is called the “Nursing Care and Terminal Condition Withdrawal Option.”

• Under certain unemployment circumstances, you may surrender all or a portion of the policy value free of any excess interest adjustment. This feature is called the “Unemployment Waiver.”

• You may generally make transfers and/or change the allocation of additional premium payments by telephone. We may restrict or eliminate this feature.

• You can arrange to automatically transfer money (at least $500 per transfer) monthly or quarterly from certain investment choices into one or more subaccounts. This feature is known as “Dollar Cost Averaging.”

• We will, upon your request, automatically transfer amounts among the subaccounts on a regular basis to maintain a desired allocation of the policy value among the various subaccounts. This feature is called “Asset Rebalancing.”

• You may elect to purchase an optional rider which provides you with a guaranteed minimum accumulation benefit and a guaranteed lifetime withdrawal benefit. This feature is called the “Living Benefits Rider.” If you elect this rider, we will monitor your policy value and, as we deem necessary to support the guarantees under the rider, may transfer amounts back and forth between investment choices that we designate and the variable investment choices that you have selected. You may lose the benefit of this rider if you take “excess” withdrawals. There is an extra charge for this rider.

• You may elect to purchase an optional rider which provides you with a guaranteed lifetime withdrawal benefit. This feature is called the “Retirement Income Choice^® 1.2 Rider.” If you elect the Retirement Income Choice^® 1.2 Rider, you must allocate 100% of your policy value according to either the Designated Allocation option or the Open Allocation option and meet other conditions. (See “Retirement Income Choice^® 1.2 – Allocation Options and Restrictions”.) You may lose the benefit of this rider if you take “excess” withdrawals. There is an extra charge for this rider.

• You may elect to purchase an optional rider which provides you with a guaranteed lifetime withdrawal benefit that uses a higher withdrawal percentage for a defined period of time and then resets to a lower percentage. This feature is called the “Income Link^® Rider.” If you elect the Income Link^® Rider, you must allocate 100% of your policy value to one or more “designated investment option(s).” (See “Income Link^® Rider – Designated Investment Options”.) You may lose the benefit of this rider if you take non-Income Link^® rider systematic withdrawals. There is an extra charge for this rider.

• You may elect to purchase an optional rider which provides you with a guaranteed lifetime withdrawal benefit. This feature is called the “Retirement Income Max^SM Rider.” If you elect the Retirement Income Max^SM Rider, you must allocate 100% of your policy value to one or more “designated investment option(s).” (See “Retirement Income Max^SM – Designated Investment Options”.) The designated investment options differ from the designated investment options for the other guaranteed lifetime withdrawal benefits. You may lose the benefit of this rider if you take “excess” withdrawals. There is an extra charge for this rider.

11. OTHER INFORMATION

Right to Cancel Period. You may return your policy for a refund, but only if you return it within a prescribed period, which is generally 10 days (after you receive the policy), or whatever longer time may be required by state law. The amount of the refund will generally be the premiums paid plus or minus accumulated gains or losses in the separate account; if state law requires, we will refund your original premium payment(s). The policy will then be deemed void.

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No Probate. Usually, the person receiving the death benefit under this policy will not have to go through probate. State laws vary on how the amount that may be paid is treated for estate tax purposes.

Who should purchase the Policy? This policy is designed for people seeking long-term tax-deferred accumulation of assets, generally for retirement or other long-term purposes; and for persons who have maximized their use of other retirement savings methods, such as 401(k) plans. The tax-deferred feature is most attractive to people in high federal and state tax brackets. The tax deferral features of variable annuities are unnecessary when purchased to fund a qualified plan. You should not buy this policy if you are looking for a short-term investment, market timing, or if you cannot take the risk of losing money that you put in.

There are various fees and charges associated with variable annuities. You should consider whether the features and benefits of this policy, unique to variable annuities, such as the opportunity for lifetime income payments, a guaranteed death benefit, the guaranteed level of certain charges, and additional features, make this policy appropriate for your needs.

State Variations. Policies issued in your state may provide different features and benefits from, and impose different costs than, those described in this prospectus because of state law variations. These differences include, among other things, free look rights, issue age limitations, and the general availability of riders. This prospectus describes the material rights and obligations of a policy owner, and the maximum fees and charges for all policy features and benefits are set forth in the fee table of this prospectus. See your policy for specific variations because any such state variations will be included in your policy or in riders or endorsements attached to your policy. See your agent or contact us for specific information that is applicable to your state.

Old Policies. This prospectus generally describes policies issued after the date of this prospectus. See “Appendix – Policy Variations” for information on how older policies have different features and requirements, and sometimes different fees and deductions.

Financial Statements. Financial Statements for the Company and the subaccounts are in the SAI. Condensed financial information for the subaccounts (those in operation by year end December 31, 2010, if any) are in “Appendix – Condensed Financial Information” to this prospectus.

12. INQUIRIES

If you need more information or want to make a transaction, please contact us at:

Transamerica Life Insurance Company

Administrative and Service Office

Attention: Customer Care Group

4333 Edgewood Road NE

Cedar Rapids, IA 52499-0001

(800) 525-6205

You may check your policy at www.transamericaannuities.com. Follow the logon procedures. You will need your pre-assigned Personal Identification Number (“PIN”) to access information about your policy. We cannot guarantee that you will be able to access this site.

You should protect your PIN, because on-line (or telephone) options may be available and could be made by anyone who knows your PIN. We may not be able to verify that the person providing instructions using your PIN is you or someone authorized by you.

14

ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES

The following describes the fees and expenses that you will pay when buying, owning, and surrendering the policy. Please be certain to review the notes following the fee table and expense examples for further information about the fees and charges presented. The order of the notes follows the order in which the fees and charges under the policy are presented in the fee tables and the expense examples.

The first section describes the fees and expenses that you will pay at the time that you buy the policy, surrender the policy, or transfer cash value between investment choices. State premium taxes may also be deducted. Excess interest adjustments may be made to amounts surrendered or applied to annuity payment options from cash value from the fixed account. (All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)

Policy Owner Transaction Expenses:

Sales Load On Purchase Payments		0	%
Maximum Surrender Charge (as a % of premium payments surrendered) Base Policy		0	%
Transfer Fee	$	0 - $10
Special Service Fee	$	0 - $25

The next section describes the fees and expenses that you will pay periodically during the time that you own the policy, not including portfolio fees and expenses. (All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)

Annual Service Charge	$	0 - $35 per policy
Separate Account Annual Expenses (as a percentage, annually, of average separate account value):
Base Separate Account Expenses:
Mortality and Expense Risk Fee		1.55	%
Administrative Charge		0.15	%
Total Base Separate Account Annual Expenses		1.70	%
Optional Separate Account Expenses:
Annual Step-Up Death Benefit		0.20	%
Fund Facilitation Fee		0.30	%
Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses		2.20	%
Optional Rider Fees:
Additional Death Distribution (annual charge based on policy value)		0.25	%
Additional Death Distribution+ (annual charge based on policy value)		0.55	%
Living Benefits Rider (annual charge, a % of Total Withdrawal Base)		0.90	%
Retirement Income Choice® 1.2 Rider (annual charge, a % of withdrawal base):
Base Benefit Open Allocation Option (Maximum)		1.95	%
Base Benefit Open Allocation Option (Current)		1.20	%
Base Benefit Designated Allocation Group A (Maximum)		2.15	%
Base Benefit Designated Allocation Group A (Current)		1.40	%

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Base Benefit Designated Allocation Group B (Maximum)	1.75	%
Base Benefit Designated Allocation Group B (Current)	1.00	%
Base Benefit Designated Allocation Group C (Maximum)	1.20	%
Base Benefit Designated Allocation Group C (Current)	0.45	%
Additional Benefits available with the Retirement Income Choice® 1.2 Rider:
Death Benefit (Single Life Option)	0.25	%
Death Benefit (Joint Life Option)	0.20	%
Income Enhancement Benefit (Single Life Option)	0.15	%
Income Enhancement Benefit (Joint Life Option)	0.30	%
Maximum Total Retirement Income Choice® 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits	2.65	%
Current Total Retirement Income Choice® 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits	1.90	%

Retirement Income Choice^® 1.4 Rider (annual charge, a % of withdrawal base):

This Rider is No Longer Available for New Sales

Base Benefit Designated Allocation Group A (Maximum)	2.15	%
Base Benefit Designated Allocation Group A (Current)	1.40	%
Base Benefit Designated Allocation Group B (Maximum)	1.75	%
Base Benefit Designated Allocation Group B (Current)	1.00	%
Base Benefit Designated Allocation Group C (Maximum)	1.20	%
Base Benefit Designated Allocation Group C (Current)	0.45	%
Additional Benefits available with the Retirement Income Choice® 1.4 Rider:
Death Benefit (Single Life Option)	0.25	%
Death Benefit (Joint Life Option)	0.20	%
Income Enhancement Benefit (Single Life Option)	0.15	%
Income Enhancement Benefit (Joint Life Option)	0.30	%
Maximum Total Retirement Income Choice® 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits	2.65	%
Current Total Retirement Income Choice® 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits	1.90	%
Income Link® Rider (annual charge a - % of withdrawal base):
Base Benefit (Maximum)	1.65	%
Base Benefit (Current)	0.90	%
Retirement Income MaxSM Rider (annual charge a % of withdrawal base):
Base Benefit (Maximum)	1.75	%
Base Benefit (Current)	1.00	%

The next section shows the lowest and highest total operating expenses charged by the underlying fund portfolios for the year ended December 31, 2010 (before any fee waiver or expense reimbursements). Expenses may be higher or lower in future years. More detail concerning each portfolio’s fees and expenses is contained in the prospectus for each portfolio.

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Total Portfolio Annual Operating Expenses (Expenses that are deducted from portfolio assets, including management fees, distribution and/or service 12b-1 fees, and other expenses):

Lowest Gross	0.54	%
Highest Gross	1.78	%

The following Example is intended to help you compare the cost of investing in the policy with the cost of investing in other variable annuity policies. These costs include policy owner transaction expenses, policy fees, separate account annual expenses, and portfolio fees and expenses.

The Example assumes that you invest $10,000 in the policy for the time periods indicated. The Example also assumes that your investment has a 5% return each year, the highest fees and expenses of any of the portfolios for the year ended December 31, 2010, and the base policy with the combination of available optional features or riders with the highest fees and expenses, including the Highest Fund Facilitation Fee, Annual Step-Up Death Benefit, Additional Death Distribution+ Rider, and Retirement Income Choice^® 1.2 Rider - Joint Life with additional Death Benefit and Income Enhancement options. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Expense Examples:

If the policy is surrendered at the end of the applicable time period:

1 Year	$	659
3 Years	$	1984
5 Years	$	3321
10 Years	$	6713

If the policy is annuitized at the end of the applicable time period or if you do not surrender your policy:

1 Year	$	659
3 Years	$	1984
5 Years	$	3321
10 Years	$	6713

Please remember that the Example is an illustration and does not represent past or future expenses. Your actual expenses may be lower or higher than those reflected in the Example. Similarly, your rate of return may be more or less than the 5% assumed in the Example.

For information concerning compensation paid for the sale of the policies, see “Distributor of the Policies.”

NOTES TO FEE TABLE AND EXPENSE EXAMPLES

Annuity Policy Fee Table and Expense Examples: The fee table applies only to the accumulation phase and reflects the maximum charges unless otherwise noted. During the income phase the fees may be different than those described in the Fee Table. See section “5. Expenses”.

Policy Owner Transaction Expenses:

Maximum Surrender Charge: If you select the Life with Emergency Cash^® annuity payment option, you will be subject to a surrender charge after the annuity commencement date. See section “5. Expenses”.

17

Transfer Fee: The transfer fee, if any is imposed, applies to each policy, regardless of how policy value is allocated among the investment choices. There is no fee for the first 12 transfers per policy year. For additional transfers, the Company may charge a fee of $10 per transfer.

Special Service Fees: We may deduct a charge for special services, such as overnight delivery.

Annual Service Charge:

Annual Service Charge: The annual service charge is assessed on each policy anniversary and at surrender. The charge is waived if your policy value, or the sum of your premiums less all partial surrenders, is at least $50,000.

Separate Account Annual Expenses:

Mortality and Expense Risk Fee: The mortality and expense risk fee shown is for the accumulation phase with the base death benefit.

Optional Separate Account Expenses: Any optional separate account expense is in addition to the mortality and expense risk and administrative fees.

Fund Facilitation Fee: This daily fee is applied only to policy value in the subaccounts invested in the American Funds - Asset Allocation Fund - Class 2 (0.30%), American Funds - Bond Fund - Class 2 (0.30%), American Funds - Growth Fund - Class 2 (0.30%), American Funds - Growth-Income Fund - Class 2 (0.30%), American Funds - International Fund - Class 2 (0.30%), AllianceBernstein Balanced Wealth Strategy Portfolio - Class B (0.20%), GE Investments Total Return Fund - Class 3 (0.20%), the Franklin Templeton VIP Founding Funds Allocation Fund - Class 4 (0.15%), and the Transamerica BlackRock Global Allocation VP - Service Class (0.10%) . See section “5. Expenses”.

Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses: This reflects the base separate account expenses, the Annual Step-Up Death Benefit fee, plus the Fund Facilitation fee, but does not include any annual optional rider fees. The death benefits are mutually exclusive.

Optional Rider Fees:

Optional Rider Fees: In some cases, riders to the policy are available that provide optional benefits. There are additional fees (each year) for those riders.

Additional Death Distribution Rider and Additional Death Distribution+ Rider: This annual fee is a percentage of the policy value and is only deducted during the accumulation phase.

Living Benefits Rider: The annual fee is a percentage of the “principal back” Total Withdrawal Base. The “principal back” Total Withdrawal Base on the rider date is the policy value (less any premium enhancements if the rider is added in the first policy year). After the rider date, the “principal back” Total Withdrawal Base is equal to: the “principal back” Total Withdrawal Base on the rider date; plus subsequent premium payments; less subsequent “principal back” adjusted partial withdrawals.

Retirement Income Choice^® 1.2 Rider, Retirement Income Choice^® 1.4 Rider, Income Link^® and Retirement Income Max^SM Rider – base benefit: The fee is a percentage of the Withdrawal Base. The Withdrawal Base on the

18

rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the Withdrawal Base is equal to the Withdrawal Base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent Withdrawal Base adjustments.

Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider – Additional Benefits (Single Life and Joint Life Options): You may elect the Retirement Income Choice^® 1.2 Rider or the Retirement Income Choice^® 1.4 Rider with one or more of the following options – Death Benefit or Income Enhancement Benefit. The charge for each of these options is a percentage of the Withdrawal Base and is in addition to the base benefit fee.

Maximum Total Retirement Income Choice^® 1.2 Rider and Maximum Total Retirement Income Choice^® 1.4 Rider Fees with Highest Combination of Benefits: After the fifth rider anniversary, the base benefit rider fees can increase when there is an automatic step-up. These fee totals reflect the maximum fee increase resulting from an automatic step-up of the Withdrawal Base while the rider is in effect.

Maximum Total Retirement Income Choice^® 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Maximum), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).

Current Total Retirement Income Choice^® 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Current), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).

Maximum Total Retirement Income Choice^® 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Maximum), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).

Current Total Retirement Income Choice^® 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Current), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).

Maximum Total Income Link^® Rider and Retirement Income Max^SM Rider Fees: After the first rider anniversary, the base benefit rider fees can increase when there is an automatic step-up. This fee total reflects the maximum fee increase resulting from an automatic step-up of the Withdrawal Base while the rider is in effect.

Total Portfolio Annual Operating Expenses:

Total Portfolio Annual Operating Expenses: The fee table information relating to the underlying fund portfolios was provided to the Company by the underlying fund portfolios, their investment advisors or managers, and the Company has not and cannot independently verify the accuracy or completeness of such information. Actual future expenses of the portfolios may be greater or less than those shown in the Table. “Gross” expense figures do not reflect any fee waivers or expense reimbursements. Actual expenses may have been lower than those shown in the Table.

Expense Examples:

Expense Examples: The Example does not reflect premium tax charges or transfer fees. Different fees and expenses not reflected in the Example may be assessed during the income phase of the policy.

19

1. THE ANNUITY POLICY

This prospectus describes the Transamerica Freedom^SM Variable Annuity policy offered by the Company. This prospectus generally describes policies issued on or after the date of this prospectus. Policies issued before that date may have different features (such as different death benefits or annuity payment options) and different charges. See “Appendix – Policy Variations” for information about older policies.

An annuity is a contract between you, the owner, and an insurance company (in this case the Company), where the insurance company promises to pay you an income in the form of annuity payments. These payments begin on a designated date, referred to as the annuity commencement date. Until the annuity commencement date, your annuity is in the accumulation phase and the earnings (if any) are tax deferred. Tax deferral means you generally are not taxed until you take money out of your annuity. After you annuitize, your annuity switches to the income phase.

The policy is a flexible premium deferred variable annuity. You can use the policy to accumulate funds for retirement or other long-term financial planning purposes. Your individual investment and your rights are determined primarily by your own policy.

The policy is a “flexible premium” annuity because after you purchase it, you can generally make additional investments of $50 or more until the annuity commencement date. You are not required to make any additional investments.

The policy is a “variable” annuity because the value of your investments can go up or down based on the performance of your investment choices. If you invest in the separate account, the amount of money you are able to accumulate in your policy during the accumulation phase depends upon the performance of your investment choices. You could lose the amount you allocate to the separate account. The amount of annuity payments you receive during the income phase from the separate account also depends upon the investment performance of your investment choices for the income phase. However, if you annuitize under the Initial Payment Guarantee feature, then you will receive stabilized annuity payments that will never be less than a percentage of your initial variable annuity payment. There is an extra charge for this feature.

The policy also contains a fixed account. The fixed account offers interest at rates that we guarantee will not decrease during the selected guaranteed period. There may be different interest rates for each different guaranteed period that you select.

Do not purchase this policy if you plan to use it, or any of its riders, for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme. Your contract is not intended or designed to be traded on any stock exchange or secondary market. By purchasing this contract, you represent and warrant that you are not using the contract, or any of its riders for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme.

2. PURCHASE

Policy Issue Requirements

The Company will not issue a policy unless:

• the Company receives in good order (at our Administrative and Service Office) all information needed to issue the policy;

• the Company receives in good order (at our Administrative and Service Office) a minimum initial premium payment; and

• the annuitant, owner, and any joint owner are age 90 or younger (the limit may be lower for qualified policies).

20

We reserve the right to reject any application or premium payment.

Premium Payments

You should make checks for premium payments payable only to Transamerica Life Insurance Company and send them to the Administrative and Service Office. Your check must be honored in order for us to pay any associated payments and benefits due under the policy.

We do not accept cash. We reserve the right to not accept third party checks. A third party check is a check that is made payable to one person who endorses it and offers it as payment to a second person. Checks should normally be payable to Transamerica Life Insurance Company, however, in some circumstances, at our discretion we may accept third party checks that are from a rollover or transfer from other financial institutions. Any third party checks not accepted by our company will be returned.

We reserve the right to reject or accept any form of payment. Any unacceptable forms of payment will be returned.

Initial Premium Requirements

The initial premium payment for nonqualified policies must be at least $15,000, and at least $1,000 for qualified policies. You must obtain prior company approval to purchase a policy with an amount less than the stated minimum. There is generally no minimum initial premium payment for policies issued under section 403(b) of the Internal Revenue Code; however, your premium must be received within 90 days of the policy date or your policy will be canceled. We will credit your initial premium payment to your policy within two business days after the day we receive it and your complete policy information at our administrative and service office. If we are unable to credit your initial premium payment, we will contact you within five business days and explain why. We will also return your initial premium payment at that time unless you let us keep it and credit it as soon as possible.

The date on which we credit your initial premium payment to your policy is generally the policy date. The policy date is used to determine policy years, policy months and policy anniversaries.

There may be delays in our receipt of applications that are outside of our control (for example, because of the failure of the selling broker/dealer or sales agent to forward the application to us promptly, or because of delays in determining whether the policy is suitable for you). Any such delays will affect when your policy can be issued and your premium allocated among your investment choices.

Additional Premium Payments

You are not required to make any additional premium payments. However, you can generally make additional premium payments as often as you like during the accumulation phase. Additional premium payments must be at least $50. We will credit additional premium payments to your policy as of the business day we receive your premium and required information in good order at our Administrative and Service Office. Additional premium payments must be received before the close of a regular business session of the New York Stock Exchange (usually 4:00 p.m. Eastern time) to get same-day pricing of the additional premium payment.

Maximum Total Premium Payments

For issue ages 0-80, we reserve the right to reject cumulative premium payments over $1,000,000 (this includes subsequent premium payments) for policies with the same owner or same annuitant issued by us or an affiliate. For issue ages over 80, we reserve the right to reject cumulative premium payments over

21

$500,000 (this includes subsequent premium payments) for policies with the same owner or same annuitant issued by us or an affiliate.

Allocation of Premium Payments

When you purchase a policy, we will allocate your premium payment to the investment choices you select. Your allocation must be in whole percentages and must total 100%. We will allocate additional premium payments the same way, unless you request a different allocation.

If you allocate premium payments to the Dollar Cost Averaging program, you must give us instructions regarding the subaccount(s) to which transfers are to be made or we cannot accept your premium payment.

You may change allocations for future additional premium payments by sending written instructions to our Administrative and Service Office, or by telephone, subject to the limitations described under “Telephone Transactions”. The allocation change will apply to premium payments received on or after the date we receive the change request in good order.

You could lose the amount you allocate to the variable subaccounts.

The Company reserves the right to restrict or refuse any premium payment.

Policy Value

You should expect your policy value to change from valuation period to valuation period. A valuation period begins at the close of regular trading on the New York Stock Exchange on each business day and ends at the close of regular trading on the next succeeding business day. A business day is each day that the New York Stock Exchange is open. The New York Stock Exchange generally closes at 4:00 p.m. Eastern time. Holidays are generally not business days.

3. INVESTMENT CHOICES

The Separate Account

The following variable subaccounts are available under the policy for new investors, but may not be available for all policies. The subaccounts invest in shares of the various underlying fund portfolios. The companies that provide investment advice and administrative services for the underlying fund portfolios offered through this policy are listed below. The following variable investment choices are currently offered through this policy. Please be certain to review the notes following the list of variable investment choices.

Note: If you received a summary prospectus for any of the portfolios listed below, please follow the instructions on the first page of the summary prospectus to obtain a copy of the full fund prospectus.

AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS)

Managed by Invesco Advisers, Inc.

Invesco V.I. Basic Value Fund – Series II Shares

Invesco V.I. Capital Appreciation Fund – Series II Shares

ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

Managed by AllianceBernstein L.P.

AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

AllianceBernstein Growth and Income Portfolio – Class B

AllianceBernstein Large Cap Growth Portfolio – Class B

22

AMERICAN FUNDS INSURANCE SERIES^® TRUST

Managed by Capital Research and Management Company^SM

American Funds – Asset Allocation Fund – Class 2

American Funds – Bond Fund – Class 2

American Funds – Growth Fund – Class 2

American Funds – Growth-Income Fund – Class 2

American Funds – International Fund – Class 2

FIDELITY^® VARIABLE INSURANCE PRODUCTS FUND

Managed by Fidelity Management & Research Company

Fidelity VIP Balanced Portfolio – Service Class 2

Fidelity VIP Contrafund^® Portfolio – Service Class 2

Fidelity VIP Equity-Income Portfolio – Service Class 2

Fidelity VIP Growth Portfolio – Service Class 2

Fidelity VIP Mid Cap Portfolio – Service Class 2

Fidelity VIP Value Strategies Portfolio – Service Class 2

FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

Managed by Franklin Advisers, Inc.

Franklin Income Securities Fund – Class 2

Managed by Franklin Mutual Advisers, LLC

Mutual Shares Securities Fund – Class 2

Managed by Templeton Investment Counsel LLC

Templeton Foreign Securities Fund – Class 2

FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

Fund Administrator: Franklin Templeton Services, LLC

Franklin Templeton VIP Founding Funds Allocation Fund – Class 4

GE INVESTMENTS FUNDS, INC.

Managed by GE Asset Management, Inc.

GE Investments Total Return Fund – Class 3

JANUS ASPEN SERIES

Managed by Janus Capital Management LLC

Janus Aspen – Enterprise Portfolio – Service

Shares Janus Aspen – Worldwide Portfolio – Service Shares

MFS^® VARIABLE INSURANCE TRUST

Managed by MFS^® Investment Management

MFS^® New Discovery Series – Service Class

MFS^® Total Return Series – Service Class

TRANSAMERICA SERIES TRUST

Portfolio Construction Manager: Morningstar Associates, LLC

Transamerica Asset Allocation – Conservative VP – Service Class

Transamerica Asset Allocation – Growth VP – Service Class

Transamerica Asset Allocation – Moderate VP – Service Class

Transamerica Asset Allocation – Moderate Growth VP – Service Class

Transamerica International Moderate Growth VP – Service Class

Subadvised by AEGON USA Investment Management, LLC

Transamerica AEGON Active Asset Allocation – Conservative VP – Service Class

Transamerica AEGON Active Asset Allocation – Moderate VP – Service Class

Transamerica AEGON Active Asset Allocation -Moderate Growth VP – Service Class

Transamerica AEGON High Yield Bond VP – Service Class

Transamerica AEGON Money Market VP – Service Class

Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica Efficient Markets VP – Service Class

Transamerica Index 35 VP – Service Class

Transamerica Index 50 VP – Service Class

Transamerica Index 75 VP – Service Class

Transamerica Index 100 VP – Service Class

Subadvised by Alliance Bernstein L.P.

23

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

Subadvised by BlackRock Financial Management, Inc.

Transamerica BlackRock Tactical Allocation VP – Service Class

Subadvised by BlackRock Investment Management, LLC

Transamerica BlackRock Large Cap Value VP – Service Class

Subadvised by Foxhall Capital Management, Inc.

Transamerica Foxhall Emerging Markets/Pacific Rim VP – Service Class

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica Foxhall Global Growth VP – Service Class

Transamerica Foxhall Global Commodities & Hard Assets VP – Service Class

Subadvised by Hanlon Investment Management, Inc.

Transamerica Hanlon Balanced VP – Service Class

Transamerica Hanlon Growth VP – Service Class

Transamerica Hanlon Growth and Income VP – Service Class

Transamerica Hanlon Managed Income VP – Service Class

Subadvised by ING Clarion Real Estate Securities, LLC

Transamerica Clarion Global Real Estate Securities VP – Service Class

Subadvised by J.P. Morgan Investment Management Inc.

Transamerica JPMorgan Core Bond VP – Service Class

Transamerica JPMorgan Enhanced Index VP – Service Class

Transamerica JPMorgan Mid Cap Value VP – Service Class

Transamerica JPMorgan Tactical Allocation VP – Service Class

Subadvised by J.P. Morgan Investment Management Inc. and BlackRock Financial Management, Inc.

Transamerica Multi-Managed Balanced VP – Service Class

Subadvised by Jennison Associates LLC

Transamerica Jennison Growth VP – Service Class

Subadvised by MFS^® Investment Management

Transamerica MFS International Equity VP – Service Class

Subadvised by Morgan Stanley Investment Management Inc.

Transamerica Morgan Stanley Active International Allocation VP – Service Class

Transamerica Morgan Stanley Capital Growth VP – Service Class

Transamerica Morgan Stanley Growth Opportunities VP – Service Class

Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class

Transamerica Multi Managed Large Cap Core VP – Service Class

Subadvised by Pacific Investment Management Company LLC

Transamerica PIMCO Real Return TIPS VP – Service Class

Transamerica PIMCO Total Return VP – Service Class

Subadvised by Systematic Financial Management L.P.

Transamerica Systematic Small/Mid Cap Value VP – Service Class

Subadvised by T. Rowe Price Associates, Inc.

Transamerica T. Rowe Price Small Cap VP – Service Class

Advised by Transamerica Asset Management, Inc.

Transamerica BlackRock Global Allocation VP – Service Class

Subadvised by Wellington Management Company, LLP

Transamerica WMC Diversified Equity VP – Service Class

Transamerica WMC Diversified Growth VP – Service Class

NOTES TO VARIABLE INVESTMENT CHOICES

Some subaccounts may be available for certain policies and may not be available for all policies. You should work with your registered representative to decide which subaccount(s) may be appropriate for you based on a thorough analysis of your particular insurance needs,

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financial objectives, investment goals, time horizons, and risk tolerance.

There can be no assurance that the Transamerica AEGON Money Market VP – Service Class portfolio will be able to maintain a stable net asset value per share. During extended periods of low interest rates, and partly as a result of policy charges, the yield on the Transamerica AEGON Money Market VP – Service Class subaccount may become extremely low and possibly negative.

Transamerica Series Trust – Service Class – As of May 1, 2003, new policyholders may only invest in the Service Class subaccounts. The Initial Class subaccounts are only available to policyholders that purchased the policy before May 1, 2003.

Transamerica AEGON Money Market VP formerly known as Transamerica Money Market VP and formerly subadvised by Transamerica Investment Management, LLC.

Transamerica AEGON U.S. Government Securities VP formerly known as Transamerica U.S. Government Securities VP and formerly subadvised by Transamerica Investment Management, LLC.

Transamerica AllianceBernstein Dynamic Allocation VP formerly known as Transamerica Convertible Securities VP and formerly subadvised by Transamerica Investment Management, LLC.

Transamerica Foxhall Global Commodities & Hard Assets VP was formerly known as Transamerica Foxhall Global Hard Assets VP.

Transamerica Multi-Managed Balanced VP formerly known as Transamerica Balanced VP and formerly subadvised by Transamerica Investment Management, LLC.

Transamerica Morgan Stanley Capital Growth VP, formerly known as Transamerica Focus and formerly subadvised by Transamerica Investment Management, LLC.

Transamerica Morgan Stanley Growth Opportunities VP formerly known as Transamerica Growth Opportunities VP and formerly subadvised by Transamerica Investment Management, LLC.

Transamerica Morgan Stanley Mid-Cap Growth VP was formerly subadvised by Van Kampen Asset Management.

Invesco Advisors has been added as a subadviser with Morgan Stanley Investment Management Inc for Transamerica Multi-Managed Large Cap Core VP.

Transamerica Systematic Small/Mid Cap Value VP formerly known as Transamerica Small/Mid Cap Value VP and formerly subadvised by Transamerica Investment Management, LLC.

Transamerica WMC Diversified Equity VP formerly known as Transamerica Diversified Equity VP and formerly subadvised by Transamerica Investment Management, LLC.

The following subaccounts are only available to owners that held an investment in those subaccounts on May 1, 2002. However, if any such owner surrenders all of his or her money from these subaccounts after May 1, 2002, that owner may not reinvest in those subaccounts.

JANUS ASPEN SERIES

Managed by Janus Capital Management LLC

Janus Aspen – Perkins Mid Cap Value Portfolio – Service Shares

Janus Aspen – Perkins Mid Cap Value Portfolio, formerly known as Janus Aspen – Mid Cap Value Portfolio.

FIDELITY^® VARIABLE INSURANCE PRODUCTS FUND

Managed by Fidelity Management & Research Company

Fidelity VIP Growth Opportunities Portfolio – Service Class 2

The following subaccount is only available to owners that held an investment in this subaccount on July 1, 2002. However, if any such owner surrenders all of his or her money from this subaccount after July 1, 2002, that owner may not reinvest in this subaccount.

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TRANSAMERICA SERIES TRUST

Subadvised by Transamerica Investment Management, LLC

Transamerica Systematic Small/Mid Cap Value VP – Initial Class

The general public may not purchase shares of any of these underlying fund portfolios. The names and investment objectives and policies may be similar to other portfolios managed by the same investment advisor or manager that are sold directly to the public. You should not expect the investment results of the underlying fund portfolios to be the same as those of other portfolios.

More detailed information, including an explanation of the portfolios’ fees and investment objectives, may be found in the current prospectuses for the underlying fund portfolios, which accompany this prospectus. You should read the prospectuses for the underlying fund portfolios carefully before you invest.

Selection of Underlying Portfolios

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

We have developed this variable annuity product in cooperation with one or more distributors, and have included certain underlying fund portfolios based on their recommendations; their selection criteria may differ from our selection criteria.

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

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

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

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

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We do not guarantee that any of the subaccounts will always be available for premium payments, allocations, or transfers. We reserve the right, subject to compliance with applicable law, to make certain changes to the separate account and its investments. We reserve the right to add new portfolios [or portfolio classes], close existing portfolios [or portfolio classes], or substitute portfolio shares that are held by any subaccount for shares of a different portfolio. We will not add, delete or substitute any underlying fund portfolio shares attributable to your interest in a subaccount without notice to you and prior approval of the SEC, to the extent required by the 1940 Act or other applicable law.

We reserve the right to limit the number of subaccounts you are invested in at any one time.

Addition, Deletion, or Substitution of Investments

The Company cannot and does not guarantee that any of the subaccounts will always be available for premium payments, allocations, or transfers. The Company retains the right, subject to any applicable law, to make certain changes in the separate account and its investments. The Company reserves the right to eliminate the shares of any portfolio held by a subaccount and to substitute shares of another portfolio of the underlying fund portfolios, or of another registered open-end management investment company for the shares of any portfolio, if the shares of the portfolio are no longer available for investment or if, in the Company’s judgment, investment in any portfolio would be inappropriate in view of the purposes of the separate account. To the extent required by the 1940 Act, as amended, substitutions of shares attributable to your interest in a subaccount will not be made without prior notice to you and the prior approval of the Securities and Exchange Commission (“SEC”). Nothing contained herein shall prevent the separate account from purchasing other securities for other series or classes of variable annuity policies, or from affecting an exchange between series or classes of variable annuity policies on the basis of your requests.

New subaccounts may be established when, in the sole discretion of the Company, marketing, tax, investment or other conditions warrant. Any new subaccounts may be made available to existing owners on a basis to be determined by the Company. Each additional subaccount will purchase shares in a mutual fund portfolio, or other investment vehicle. The Company may also eliminate one or more subaccounts if, in its sole discretion, marketing, tax, investment or other conditions warrant such change. In the event any subaccount is eliminated, the Company will notify you and request a reallocation of the amounts invested in the eliminated subaccount.

Similarly, the Company may, at its discretion, close a subaccount to new investment (either transfers or premium payments). Any amounts that would otherwise be invested in a closed subaccount (for premium allocations, portfolio rebalancing, dollar cost averaging, automatic checking account or payroll deductions for period premiums, etc.) will, if you do not provide instructions for a new allocation be invested in the subaccount that invests in a portfolio of money market instruments. If a portfolio of money market instruments is unavailable, the Company will reinvest the amounts in another subaccount, or in the fixed account, if appropriate.

In the event of any such substitution or change, the Company may, by appropriate endorsement, make such changes in the policies as may be necessary or appropriate to reflect such substitution or change. Furthermore, if deemed to be in the best interests of persons having voting rights under the policies, the separate account may be (1) operated as a management company under the 1940 Act or any other form permitted by law, (2) deregistered under the 1940 Act in the event such registration is no longer required or (3) combined with one or more

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other separate accounts. To the extent permitted by applicable law, the Company also may (1) transfer the assets of the separate account associated with the policies to another account or accounts, (2) restrict or eliminate any voting rights of owners or other persons who have voting rights as to the separate account, (3) create new separate accounts, (4) add new subaccounts to or remove existing subaccounts from the separate account, or combine subaccounts, or (5) add new underlying fund portfolios, or substitute a new fund for an existing fund.

Static Allocation Models

A Static Allocation Model is an allocation strategy comprised of two or more underlying fund portfolios that together provide a unique allocation mix not available as a single underlying fund portfolio. Policy owners that elect a Static Allocation Model directly own subaccount units of the underlying fund portfolios that comprise a particular model. In other words, a Static Allocation Model is not a group of underlying fund portfolios with one accumulation/annuity unit value, but rather, direct investment in a certain allocation of subaccounts. There is no additional charge associated with investing in a Static Allocation Model.

Each of the Static Allocation Models is just that: static. The allocations or “split” between one or more subaccounts is not monitored and adjusted to reflect changing market conditions. However, a policy owner’s investment in a Static Allocation Model will be rebalanced annually to ensure that the assets are allocated to the percentages in the same proportion that they were allocated at the time of election.

Only one Static Allocation Model may be elected at any one time. Additionally, the entire policy value must be allocated to the elected model.

You may request to transfer from one model to another, or transfer from a model to any other investment option. Each transfer into or out of a Static Allocation Model is considered one transfer.

The Fixed Account

Premium payments allocated and amounts transferred to the fixed account become part of the Company’s general account. Interests in the general account have not been registered under the Securities Act of 1933 (the “1933 Act”), nor is the general account registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are generally subject to the provisions of the 1933 or 1940 Acts. Disclosures relating to interests in the general account may, however, be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy of statements made in a registration statement.

While we do not guarantee that the fixed account will always be available for investment, we do guarantee that the interest credited to the fixed account will not be less than the guaranteed minimum effective annual interest rate shown on your policy (the “guaranteed minimum”). We determine credited rates, which are guaranteed for at least one year, in our sole discretion. You bear the risk that we will not credit interest greater than the guaranteed minimum. At the end of the guaranteed period option you selected, the value in that guaranteed period option will automatically be transferred into a new guaranteed period option of the same length (or the next shorter period if the same period is no longer offered) at the current interest rate for that period. You can transfer to another investment choice by giving us notice within 30 days before the end of the expiring guaranteed period.

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Full and partial surrenders and transfers from a guaranteed period option of the fixed account are generally subject to an excess interest adjustment (except at the end of the guaranteed period). This adjustment will also be made to amounts that you apply to an annuity payment option. This adjustment may increase or decrease the amount of interest credited to your policy. The excess interest adjustment will not decrease the interest credited to your policy below the guaranteed minimum.

We also guarantee that upon full surrender your cash value attributable to the fixed account will not be less than the amount required by the applicable nonforfeiture law at the time the policy is issued.

If you select the fixed account, your money will be placed with the Company’s other general assets. The amount of money you are able to accumulate in the fixed account during the accumulation phase depends upon the total interest credited. The amount of each annuity payment you receive during the income phase from the fixed portion of your policy will remain level for the entire income phase.

We reserve the right to refuse any premium payment or transfer to the fixed account.

Transfers

During the accumulation phase, you may make transfers to or from any investment choice within certain limitations.

Transfers out of a guaranteed period option of the fixed account are limited to the following:

• Transfers at the end of a guaranteed period. No excess interest adjustment will apply.

• Transfers of amounts equal to interest credited. This may affect your overall interest-crediting rate, because transfers are deemed to come from the oldest premium payment first.

• Other than at the end of a guaranteed period, transfers of amounts from the guaranteed period option in excess of amounts equal to interest credited, are subject to an excess interest adjustment. If it is a negative adjustment, the maximum amount you can transfer in any one policy year is 25% of the amount in that guaranteed period option, less any previous transfers during the current policy year. If it is a positive adjustment, we do not limit the amount that you can transfer.

Each transfer must be at least $500, or the entire subaccount value. Transfers of interest from a guaranteed period option of the fixed account must be at least $50. If less than $500 remains as a result of the transfer, then we reserve the right to include that amount in the transfer. Transfer requests must be received in good order at our Administrative and Service Office while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction.

The number of transfers permitted may be limited and a $10 charge for each transfer in excess of 12 in any policy year may apply. We reserve the right to prohibit transfers to the fixed account.

During the income phase, you may transfer values out of any subaccount; however, you cannot transfer values out of the fixed account. The minimum amount that can be transferred during this phase is the lesser of $10 of monthly income, or the entire monthly income of the annuity units in the subaccount from which the transfer is being made.

Transfers made by telephone are subject to the limitations described below under “Telephone Transactions.”

Market Timing and Disruptive Trading

Statement of Policy. This variable insurance product was not designed for the use of market timers or frequent or disruptive traders. (Frequent transfers are

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considered to be disruptive.) 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 policy owners (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 policy owners invested in those subaccounts, not just those making the transfers.

We have developed policies and procedures with respect to market timing and disruptive trading (which vary for certain subaccounts at the request of the corresponding underlying fund portfolios) and we do not make special arrangements or grant exceptions to accommodate market timing or potentially disruptive trading. As discussed herein, we cannot detect or deter all market timing or potentially disruptive trading. Do not invest with us if you intend to conduct market timing or potentially disruptive trading.

Detection. We employ various means in an attempt to detect and deter market timing and disruptive trading. However, despite our monitoring we may not be able to detect nor halt all harmful trading. In addition, because other insurance companies (and retirement plans) with different policies and procedures may invest in the underlying fund portfolios, we cannot guarantee that all harmful trading will be detected or that an underlying fund portfolio will not suffer harm from market timing and disruptive trading among subaccounts of variable products issued by these other insurance companies or retirement plans.

Deterrence. If we determine you 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 policy owners (or others having an interest in the variable insurance products). As described below, restrictions may take various forms, but under our current policies and procedures will include loss of expedited transfer privileges. We consider transfers by telephone, fax, overnight mail, or the Internet to be “expedited” transfers. This means that we would accept only written transfer requests with an original signature transmitted to us only by U.S. mail. We may also restrict the transfer privileges of others acting on your behalf, including your registered representative or an asset allocation or investment advisory service.

We reserve the right to reject any premium payment or transfer request from any person without prior notice, if, in our judgment, (1) the payment or transfer, or series of transfers, would have a negative impact on an underlying fund portfolio’s operations,

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or (2) if an underlying fund portfolio would reject or has rejected our purchase order or has instructed us not to allow that purchase or transfer, or (3) because of a history of market timing or disruptive trading. We may impose other restrictions on transfers, or even prohibit transfers for any owner who, in our view, has abused, or appears likely to abuse, the transfer privilege on a case-by-case basis. We may, at any time and without prior notice, discontinue transfer privileges, modify our procedures, impose holding period requirements or limit the number, size, frequency, manner, or timing of transfers we permit. Because determining whether to impose any such special restrictions depends on our judgement and discretion, it is possible that some policy owners could engage in disruptive trading that is not permitted for others. We also reserve the right to reverse a potentially harmful transfer if an underlying fund portfolio refuses or reverses our order; in such instances some policy owners may be treated differently than others in that some transfers may be reversed and others allowed. For all of these purposes, we may aggregate two or more 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 these 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:

• impose redemption fees on transfers; or

• expressly limit the number or size of transfers in a given period except for certain subaccounts where an underlying fund portfolio has advised us to prohibit certain transfers that exceed a certain size; or

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

Please note that the limits and restrictions described herein are subject to our ability to monitor transfer activity. Our ability to detect market timing or disruptive trading may be limited by operational and technological systems, as well as by our ability to predict strategies employed by policy owners (or those acting on their behalf) to avoid detection. As a result, despite our efforts to prevent harmful trading activity among the variable investment choices available under this variable insurance product, there is no assurance that we will be able to detect or deter market timing or disruptive trading by such policy owners or intermediaries acting on their behalf. Moreover, our ability to discourage and restrict

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market timing or disruptive trading may be limited by decisions of state regulatory bodies and court orders that we cannot predict.

Furthermore, we may revise our policies and procedures in our sole discretion at any time and without prior notice, as we deem necessary or appropriate (1) to better detect and deter harmful trading that may adversely affect other policy owners, other persons with material rights under the variable insurance products, or underlying fund shareholders generally, (2) to comply with state or federal regulatory requirements, or (3) to impose additional or alternative restrictions on owners engaging in market timing or disruptive trading among the investment choices under the variable insurance product. In addition, we may not honor transfer requests if any variable investment choice that would be affected by the transfer is unable to purchase or redeem shares of its corresponding underlying fund portfolio.

Underlying Fund Portfolio Frequent Trading Policies. The underlying fund portfolios may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares. Underlying fund portfolios may, for example, assess a redemption fee (which we reserve the right to collect) on shares held for less than a certain period of time. The prospectuses for the underlying fund portfolios describe any such policies and procedures. The frequent trading policies and procedures of an underlying fund portfolio may be different, and more or less restrictive, than the frequent trading policies and procedures of other underlying fund portfolios and the policies and procedures we have adopted for our variable insurance products to discourage market timing and disruptive trading. Policy owners should be aware that we may not have the contractual ability or the operational capacity to monitor policy owners’ transfer requests and apply the frequent trading policies and procedures of the respective underlying funds that would be affected by the transfers. Accordingly, policy owners 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.

Policy owners should be aware that we are required to provide to an underlying fund portfolio or its designee, promptly upon request, certain information about the trading activity of individual policy owners, and to restrict or prohibit further purchases or transfers by specific policy owners identified by an underlying fund portfolio as violating the frequent trading policies established for the portfolio.

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

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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.

4. PERFORMANCE

The Company periodically advertises performance of the various subaccounts. Performance figures might not reflect charges for options, riders, or endorsements. We may disclose at least three different kinds of non-standard performance. First, we may calculate performance by determining the percentage change in the value of an accumulation unit by dividing the increase (decrease) for that unit by the value of the accumulation unit at the beginning of the period. This performance number reflects the deduction of the mortality and expense risk fees and administrative charges. It does not reflect the deduction of any applicable premium taxes, or fees for any optional riders or endorsements. Any such deduction would reduce the percentage increase or make greater any percentage decrease.

Second, advertisements may also include total return figures, which reflect the deduction of the mortality and expense risk fees and administrative charges. These figures may also reflect the premium enhancement, if any.

Third, for certain investment portfolios, performance may be shown for the period commencing from the inception date of the investment portfolio (i.e., before commencement of subaccount operations). These figures should not be interpreted to reflect actual historical performance of the subaccounts.

Not all types of performance data presented reflect all of the fees and charges that may be deducted (such as fees for optional benefits); performance figures would be lower if these charges were included.

5. EXPENSES

Note: The following section on expenses and the Annuity Policy Fee Table and Expense Examples only apply to policies issued after the date of this prospectus. See “Appendix – Policy Variations” for information about older policies.

There are charges and expenses associated with your policy that reduce the return on your investment in the policy.

Excess Interest Adjustment

Surrenders and transfers from the fixed account may be subject to an excess interest adjustment. This adjustment could retroactively reduce the interest credited in the fixed account to the guaranteed minimum or increase the amount credited. This adjustment may also apply to amounts applied to an annuity payment option. Please see “Appendix – Excess Interest Adjustment Examples” for an example showing the effect of a hypothetical excess interest adjustment calculation.

Mortality and Expense Risk Fees

We charge a fee as compensation for bearing certain mortality and expense risks under the policy. This fee is assessed daily based on the net asset value of each subaccount. Examples of such risks include a guarantee of annuity rates, the death benefit, certain expenses of the policy, and assuming the risk that the current charges will be insufficient in the future to cover costs of administering the policy. We may also pay distribution expenses out of this charge.

During the accumulation phase:

• For the Return of Premium Death Benefit, the daily mortality and expense risk fee is at an annual rate of 1.55%.

• For the Annual Step-Up Death Benefit, the daily mortality and expense risk fee is at an annual rate of 1.75%.

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During the income phase, the mortality and expense risk fee is at an annual rate of 1.10%.

If this charge does not cover our actual costs, we absorb the loss. Conversely, if the charge more than covers actual costs, the excess is added to our surplus. We expect to profit from this charge. We may use any profit for any proper purpose, including distribution expenses.

Premium Taxes

Some states assess premium taxes on the premium payments you make. We currently do not deduct for these taxes at the time you make a premium payment. However, we will deduct the total amount of premium taxes, if any, from the policy value when:

• you begin receiving annuity payments;

• you surrender the policy; or

• a death benefit is paid.

State premium taxes currently range from 0% to 3.50%, depending on the state.

Federal, State and Local Taxes

We may in the future deduct charges from the policy for any taxes we incur because of the policy. However, no deductions are being made at the present time.

Special Service Fees

We will deduct a charge for special services, such as overnight delivery, up to $25 per service provided.

Transfer Fee

You are generally allowed to make 12 free transfers per policy year before the annuity commencement date. If you make more than 12 transfers per year, we reserve the right to charge $10 for each additional transfer. Premium payments, Asset Rebalancing, and Dollar Cost Averaging transfers do not count as one of your free transfers. All transfer requests made at the same time are treated as a single transfer.

Administrative Charges

We deduct a daily administrative charge to cover the costs of administering the policy (including certain distribution-related expenses). This charge is equal to an annual rate of 0.15% of the daily net asset value of each subaccount during both the accumulation phase and the income phase.

In addition, during the accumulation phase, an annual service charge of $35 (but not more than 2% of the policy value) is charged on each policy anniversary and at surrender. The service charge is waived if your policy value or the sum of your premiums, less all partial surrenders, is at least $50,000.

Initial Payment Guarantee

If you elect the Initial Payment Guarantee feature at the time of annuitization, there is a fee (during the income phase) currently at an annual rate of 1.25% of the daily net asset value. This fee may be higher or lower at the time you annuitize and elect the feature.

Fund Facilitation Fee

We charge a fund facilitation fee in order to make certain funds available as investment choices under the policies. We apply the fee to funds that do not provide us with the amount of revenue we require in order for us to meet our expenses and revenue targets. This fee is assessed daily based on the net asset value of subaccounts that we specify. The fund facilitation fee, expressed as an annual rate is:

• 0.30% if you choose the American Funds – Asset Allocation Fund – Class 2

• 0.30% if you choose theAmerican Funds – Bond Fund – Class 2

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• 0.30% if you choose the American Funds – Growth Fund – Class 2

• 0.30% if you choose the American Funds – Growth-Income Fund – Class 2

• 0.30% if you choose the American Funds – International Fund – Class 2

• 0.20% if you choose the AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

• 0.20% if you choose the GE Investments Total Return Fund – Class 3

• 0.15% if you choose the Franklin Templeton VIP Founding Funds Allocation Fund – Class 4

• 0.10 % if you choose the Transamerica BlackRock Global Allocation VP – Service Class

Additional Death Distribution

If you elect the Additional Death Distribution, there is an annual rider fee during the accumulation phase of 0.25% of the policy value. The rider fee will be deducted on each rider anniversary and upon termination of the rider during the accumulation phase. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Additional Death Distribution+

If you elect the Additional Death Distribution+, there is an annual rider fee during the accumulation phase of 0.55% of the policy value. The rider fee will be deducted on each rider anniversary and upon termination of the rider during the accumulation phase. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Life with Emergency Cash^® Surrender Charge

If you select the Life with Emergency Cash^® annuity payment option, then you can surrender your policy even after annuity payments have begun. However, there is a surrender charge during the first four years after the annuity commencement date (no matter which policy or variation thereof you previously purchased). The following schedule shows the current surrender charge:

Number of Years Since Annuity Commencement Date	Surrender Charge (as a percentage of adjusted policy  value)
0 – 1		4	%
1 – 2		3	%
2 – 3		2	%
3 – 4		1	%
more than 4		0	%

We can change the surrender charge, and you will be subject to whatever surrender schedule is in effect at the time you annuitize under the Life with Emergency Cash^® annuity payment option.

Note carefully the following three things about this surrender charge:

• this surrender charge is measured from the annuity commencement date and not from the premium payment date;

• this surrender charge is a percentage of the adjusted policy value applied to the Life with Emergency Cash^® annuity payment option, and not a percentage of premium; and

• under this payment option, there is no surrender charge free amount.

Living Benefits Rider

If you elect the Living Benefits Rider, there is an annual rider fee of 0.90% of the “principal back” total withdrawal base on each rider anniversary before annuitization. We will also deduct the rider fee upon full surrender of the policy or other termination of the rider. The rider fee is deducted

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from each investment choice in proportion to the amount of policy value in each investment choice. Generally, the rider fee is deducted even if your policy value exceeds your total withdrawal base.

We will continue to calculate the rider fee using the “principal back” total withdrawal base even after the “principal back” minimum remaining withdrawal amount reaches zero. The “principal back” total withdrawal base is always greater than or equal to the “for life” total withdrawal base.

Retirement Income Choice^® 1.2 Rider and Additional Options Fees

If you elect the Retirement Income Choice^® 1.2 rider, then the rider fee, which is charged quarterly before annuitization, depends on the allocation option that you choose. If you choose the Open Allocation option, then the fee for the base benefit (for either single or joint life) is 1.20% ( on an annual basis) of the withdrawal base. If you choose the Designated Investment option, then the fee for the base benefit (for single or joint life) is 1.40%, 1.00%, and 0.45% (on an annual basis) of the withdrawal base for allocating 100% of your policy value in Designated Allocation Allocation Group A, Designated Allocation Group B, or Designated Allocation Group C, respectively. If you elect a combination of designated investment options among various classes, then your fee will be based on a weighted average of your choices. If you elect options with the Retirement Income Choice^® 1.2 rider, then for each option you elect, you will be charged a fee that is a percentage of the withdrawal base on each rider quarter before annuitization, and is in addition to the rider fee for the base benefit. The additional fees, on an annual basis, are as follows:

Options	Single Life Option			Joint Life Option
Death Benefit		0.25	%		0.20	%
Income Enhancement Benefit		0.15	%		0.30	%

We will also deduct any rider fee pro rata upon full surrender of the policy or other termination of the rider. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Retirement Income Choice^® 1.4 Rider and Additional Options Fees – This Rider is No Longer Available for New Sales

If you elect the Retirement Income Choice^® 1.4 rider, then the rider fee, which is charged quarterly before annuitization, is 1.40%, 1.00%, and 0.45% (on an annual basis) of the withdrawal base for allocating 100% of your policy value in Designated Allocation Allocation Group A, Designated Allocation Group B, or Designated Allocation Group C, respectively. If you elect a combination of designated investment options among various classes, then your fee will be based on a weighted average of your choices. If you elect options with the Retirement Income Choice^® 1.4 rider, then for each option you elect, you will be charged a fee that is a percentage of the withdrawal base on each rider quarter before annuitization, and is in addition to the rider fee for the base benefit. The additional fees, on an annual basis, are as follows:

Options	Single Life Option			Joint Life Option
Death Benefit		0.25	%		0.20	%
Income Enhancement Benefit		0.15	%		0.30	%

We will also deduct any rider fee pro rata upon full surrender of the policy or other termination of the rider. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

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Income Link^® Rider Fee

If you elect the Income Link^® rider, then the rider fee, which is charged quarterly before annuitization, is 0.90% (on an annual basis) of the withdrawal base.

We will also deduct the rider fee pro rata upon full surrender of the policy or other termination of the rider. The rider fee is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Retirement Income Max^SM Rider Fees

If you elect the Retirement Income Max^SM rider, then the rider fee, which is charged quarterly before annuitization, is 1.00% (on an annual basis) of the withdrawal base. We will also deduct the rider fee pro rata upon full surrender of the policy or other termination of the rider. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Portfolio Fees and Expenses

The value of the assets in each subaccount will reflect the fees and expenses paid by the underlying fund portfolios. The lowest and highest fund expenses for the previous calendar year are found in the Annuity Policy Fee Table section of this prospectus. See the prospectuses for the underlying fund portfolios for more information.

Revenue We Receive

This prospectus describes generally the payments that we (and/or our affiliates) may directly or indirectly receive from the underlying fund portfolios, their advisers, subadvisers, distributors or affiliates thereof, in connection with certain administrative, marketing and other support services we (and/or our affiliates) provide and expenses we incur in offering and selling our variable insurance products. These arrangements are sometimes referred to as “revenue sharing” arrangements and are described further below. While only certain of the types of payments described below may be made in connection with your particular policy, all such payments may nonetheless influence or impact actions we (and/or our affiliates) take, and recommendations we (and our affiliates) make, regarding each of the variable insurance products that we (and our affiliates) offer, including your policy.

We (and/or our affiliates) may receive some or all of the following types of payments:

• Rule 12b-1 Fees. Our affiliate Transamerica Capital, Inc. (“TCI”) is the principal underwriter for the policies and directly or indirectly receives some or all of the 12b-1 fees from the funds available as investment choices under our variable insurance products. Any 12b-1 fees received by TCI that are attributable to our variable insurance products are then credited to us. These fees range from 0.00% to 0.25% of the average daily assets of the certain underlying fund portfolios attributable to the policies and to certain other variable insurance products that we and our affiliates issue.

• Administrative, Marketing and Support Service Fees (“Support Fees”). As noted above, an investment adviser, sub-adviser, administrator and/or distributor (or affiliates thereof) of the underlying fund portfolios may make payments to us and/or our affiliates, including TCI. These payments may be derived, in whole or in part, from the profits the investment advisor or sub-adviser realized on the advisory fee deducted from underlying fund portfolio assets. Policy owners, through their indirect investment in the underlying fund portfolios, bear the costs of these advisory fees (see the prospectuses for the underlying funds for more information). The amount of the payments we (or our affiliates) receive is generally based on a percentage of the assets of the particular underlying fund portfolios attributable to the policy and to certain other variable insurance products that our affiliates and we issue. These percentages

37

differ and the amounts may be significant. Some advisers or sub-advisers (or other affiliates) pay us more than others.

The following chart provides the maximum combined percentages of 12b-1 fees and Support Fees that we anticipate will be paid to us on an annual basis. Please note: Some of the underlying funds listed in the chart below may not currently be available under your policy:

Incoming Payments to the Company and/or TCI

Fund	Maximum Fee % of assets
TRANSAMERICA SERIES TRUST		0.25	%
AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS)		0.50	%
ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.		0.45	%
AMERICAN FUNDS INSURANCE SERIES® TRUST		0.25	%
FIDELITY® VARIABLE INSURANCE PRODUCTS FUND		0.35	%
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST		0.50	%
GE INVESTMENTS FUNDS, INC.		0.45	%
JANUS ASPEN SERIES		0.35	%
MFS® VARIABLE INSURANCE TRUST		0.45	%

NOTES TO INCOMING PAYMENTS TABLE:

Maximum Fee % of assets: Payments are based on a percentage of the average assets of each underlying fund portfolio owned by the subaccounts available under this policy and under certain other variable insurance products offered by our affiliates and us. We and/or TCI 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 and TCI provide.

Transamerica Series Trust (“TST”): Because TST is managed by Transamerica Asset Management, Inc. (“TAM”), an affiliate of ours, there are additional benefits to us and our affiliates for amounts you allocate to the TST underlying fund portfolios, in terms of our and our affiliates’ overall profitability. These additional benefits may be significant. Payments or other benefits may be received from TAM. Such payments or benefits may be entered into for a variety of purposes, such as to allocate resources to us to provide administrative services to the policyholders who invest in the TST underlying fund portfolios. These payments or benefits may take the form of internal credits, recognition, or cash payments. A variety of financial and accounting methods may be used to allocate resources and profits to us. Additionally, if a TST portfolio is sub-advised by an entity that is affiliated with us, we may retain more revenue than on those TST portfolios that are sub-advised by non-affiliated entities. During 2010 we received $72,069,379 in benefits from TAM pursuant to these arrangements. This includes the 0.25% amount in the above chart. We anticipate receiving comparable amounts in the future.

Fidelity^® Variable Insurance Products Fund: We receive this percentage once $100 million in fund shares are held by the subaccounts of the Company and its affiliates.

• Other Payments. TCI also serves as the wholesale distributor for the policies, and in that capacity directly or indirectly receives additional amounts or different percentages of assets under management from certain advisers and sub-advisers to the underlying fund portfolios (or their affiliates) with regard to variable insurance products and/or mutual funds that are issued by us and our affiliates. These amounts may be derived, in whole or in part, from the profits the investment adviser or sub-adviser receives from the advisory fee deducted from underlying fund portfolio assets. Policy owners, through their indirect investment in the underlying fund portfolios, bear the costs of these advisory fees. Certain advisers and sub-advisers of the underlying fund portfolios (or their affiliates):

• may each directly or indirectly 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 as well as internal and external meetings and events that are attended by TCI’s wholesalers and/or other TCI employees.

• may provide our affiliates and/or selling firms with wholesaling services to assist us in the distribution of the policies.

• may provide us and/or certain affiliates and/or selling firms with occasional gifts, meals, tickets or other compensation as an

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incentive to market the underlying fund portfolios and to assist with their promotional efforts. The amounts may be significant and these arrangements provide the adviser or subadviser (or other affiliates) with increased access to us and to our affiliates involved in the distribution of the policies.

For the calendar year ended December 31, 2010, TCI or its affiliates received total revenue sharing payments in the amount of $1,769,559 from the following Fund managers and/or sub-advisers to participate in TCI’s events: Alliance Bernstein Investments, American Funds, BlackRock Investment Management, LLC., BNY Melon, , Federated Equity Management Co, of PA, Fidelity Investments, Foxhall Capital Management, Franklin Templeton Investments, GE Asset Management, Hanlon Investment Management Inc., ING Clarion Real Estate Securities, Invesco AIM, Janus Capital, Jennison Associates, JPMorgan Investment Management, Loomis, Sayles & Company, MFS Investment Management, Neuberger Berman Management, Oppenheimer Funds, Pacific Investment Management Company, Putnam, Schroder Investment Management North America, Transamerica Investment Management, Van Kampen Investments, Vanguard, Wellington Management Company. Please note some of the aforementioned managers and/or subadvisors may not be associated with underlying fund portfolios currently available in this product.

Proceeds from certain of these payments by the underlying fund portfolios, the advisers, the sub-advisers and/or their affiliates may be used for any corporate purpose, including payment of expenses (1) that we and our affiliates incur in promoting, marketing, and administering the policy, and (2) that we incur, in our role as intermediary, in promoting, marketing, and administering the underlying fund portfolios. We and our affiliates may profit from these payments.

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

6. ACCESS TO YOUR MONEY

During the accumulation phase, you can have access to the money in your policy in the following ways:

• by making a surrender (either a full or partial surrender); or

• by taking systematic payouts (See “Section 10, Systematic Payout Option” for more details).

Surrenders

If you take a full surrender, you will receive your cash value.

If you want to take a partial surrender, in most cases it must be for at least $500. Unless you tell us otherwise, we will take the surrender from each of the investment choices in proportion to the policy value.

Remember that any surrender you take will reduce the policy value, and the amount of the death benefit. See “Section 8, Death Benefit”, for more details. A partial surrender also may have a negative impact on certain other benefits and guarantees of your Contract.

Surrenders from qualified policies may be restricted or prohibited.

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During the income phase, you will receive annuity payments under the annuity payment option you select; however, you generally may not take any other surrenders, either full or partial, unless you elect a Life with Emergency Cash^® payment option.

If your policy was issued pursuant to a 403(b) plan, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders, loans or transfers you request comply with applicable tax requirements and to decline requests that are not in compliance. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender, loan or transfer, you consent to the sharing of confidential information about you, the policy, and transactions under the policy and any other 403(b) contracts or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.

Delay of Payment and Transfers

Payment of any amount due from the separate account for a surrender, a death benefit, or the death of the owner of a nonqualified policy, will generally occur within seven days from the date we receive in good order all required information at our Administrative and Service Office. We may defer such payment from the separate account if:

• the New York Stock Exchange is closed other than for usual weekends or holidays or trading on the Exchange is otherwise restricted;

• an emergency exists as defined by the SEC or the SEC requires that trading be restricted; or

• the SEC permits a delay for the protection of owners.

Transfers of amounts from the subaccounts also may be deferred under these circumstances. In addition, if, pursuant to SEC rules, the Transamerica AEGON Money Market VP portfolio suspends payment of redemption proceeds in connection with a liquidation of the portfolio, then we may delay payment of any transfer, partial withdrawal, surrender, loan, or death benefit from the Transamerica AEGON Money Market VP portfolio until the portfolio is liquidated.

Any payment or transfer request which is not in good order will cause a delay.

Federal laws designed to counter terrorism and prevent money laundering by criminals might in certain circumstances require us to reject a premium payment and/or “freeze” a policy owner’s account. If these laws apply in a particular situation, we would not be allowed to pay any request for withdrawals, surrenders, or death benefits, make transfers, or continue making annuity payments absent instructions from the appropriate federal regulator. We may also be required to provide information about you and your policy to government agencies or departments.

Pursuant to the requirements of certain state laws, we reserve the right to defer payment of the cash value from the fixed account for up to six months. We may defer payment of any amount until your premium payment check has cleared your bank.

Excess Interest Adjustment

Money that you transfer out of or surrender from a guaranteed period option of the fixed account before the end of its guaranteed period (the number of years you specified the money would remain in the guaranteed period option) may be subject to an excess interest adjustment. At the time you request a transfer or surrender (either full or partial), if interest rates set by the Company have risen since the date of the initial guarantee, the excess interest adjustment will result in a lower cash value on surrender or transfer. However, if interest rates have fallen since the date of the initial guarantee, the excess interest adjustment will result in a higher cash value on surrender or transfer. Please see “Appendix – Excess

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Interest Adjustment Examples” to see how the excess interest adjustment is calculated and illustrative examples using hypothetical values.

Any amount surrendered in excess of the cumulative interest credited is generally subject to an excess interest adjustment. An excess interest adjustment may also be made on amounts applied to an annuity payment option.

There will be no excess interest adjustment on any of the following:

• surrenders of cumulative interest credited;

• Nursing Care and Terminal Condition Withdrawal Option surrenders;

• Unemployment Waiver surrenders;

• surrenders to satisfy any minimum distribution requirements; and

• Systematic Payout Option payments, which do not exceed cumulative interest credited at the time of payment.

Please note that in these circumstances you will not receive a higher cash value if interest rates have fallen nor will you receive a lower cash value if interest rates have risen.

The excess interest adjustment may vary for certain policies and may not be applicable for all policies.

Signature Guarantee

As a protection against fraud, we require a signature guarantee (i.e., Medallion Signature Guarantee or Notary Public Stamp as required by us) for the following transaction requests:

• Any surrenders over $250,000;

• Certain surrenders on or within 15 days of an address change;

• Any disbursement request made on or within 15 days of an ownership change;

• Any surrender when the Company has been directed to send proceeds to a different personal address from the address of record for that contract owner’s account. PLEASE NOTE: This requirement will not apply to requests made in connection with exchanges of one annuity for another with the same owner in a “tax-free exchange”;

• Any surrender when the Company does not have an originating or guaranteed signature on file;

• Any other transaction where we require.

We may change the specific requirements listed above, or add signature guarantees in other circumstances, in our discretion if we deem it necessary or appropriate to help protect against fraud. For current requirements, please refer to the requirements listed on the appropriate form or call us at (800) 552-6205.

You can obtain a Medallion signature guarantee from more than 7,000 financial institutions across the United States and Canada that participate in a Medallion signature guarantee program. This includes many:

• National and state banks;

• Savings banks and savings and loan associations;

• Securities brokers and dealers; and

• Credit Unions.

The best source of a Medallion signature guarantee is a bank, savings and loan association, brokerage firm, or credit union with which you do business. Guarantor firms may, but frequently do not, charge a fee for their services.

A notary public cannot provide a Medallion signature guarantee. Notarization will not substitute for a Medallion signature guarantee.

7. ANNUITY PAYMENTS (THE INCOME PHASE)

You choose the annuity commencement date. You can change this date by giving us notice with the information we need. New annuity commencement

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dates less than 30 days after we receive notice of the change require prior approval. The latest maximum annuity commencement date generally cannot be after the policy month following the month in which the annuitant attains age 95. The earliest annuity commencement date is at least thirty days after you purchase your policy.

Before the annuity commencement date, if the annuitant is alive, you may choose an annuity payment option or change your election. If the annuitant dies before the annuity commencement date, the death benefit is payable in a lump sum or under one of the annuity payment options (unless the surviving spouse continues the policy).

Unless you specify otherwise, the annuitant will receive the annuity payments. After the annuitant’s death, the beneficiary you designate at annuitization will receive any remaining guaranteed payments.

Annuity Payment Options

The policy provides several annuity payment options that are described below. You may choose any combination of annuity payment options. We will use your policy value to provide these annuity payments. If the policy value on the annuity commencement date is less than $2,000, we reserve the right to pay it in one lump sum in lieu of applying it under an annuity payment option. You can receive annuity payments monthly, quarterly, semi-annually, or annually. (We reserve the right to change the frequency if payments would be less than $50.)

If you choose to receive fixed payments, then the amount of each payment will be set on the annuity commencement date and will not change. You may, however, choose to receive variable payments. The dollar amount of the first variable payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the policy. The dollar amount of additional variable payments will vary based on the investment performance of the subaccount(s) you select. The dollar amount of each variable payment after the first may increase, decrease, or remain constant. If the actual investment performance (net of fees and expenses) exactly matched the assumed investment return of 5% at all times, the amount of each variable annuity payment would remain constant. If actual investment performance (net of fees and expenses) exceeds the assumed investment return, the amount of the variable annuity payments would increase. Conversely, if actual investment performance (net of fees and expenses) is lower than the assumed investment return, the amount of the variable annuity payments would decrease. Please note that these changes only occur annually under the Initial Payment Guarantee.

A charge for premium taxes and an excess interest adjustment may be made when annuity payments begin.

The annuity payment options are explained below. Some options are fixed only and some can be fixed or variable.

Income for a Specified Period (fixed only). We will make level payments only for a fixed period. No funds will remain at the end of the period.

If your policy is a qualified policy, this payment option may not satisfy minimum required distribution rules. Consult a tax advisor before electing this option.

Income of a Specified Amount (fixed only). Payments are made for any specified amount until the amount applied to this option, with interest, is exhausted. This will be a series of level payments followed by a smaller final payment.

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If your policy is a qualified policy, this payment option may not satisfy minimum required distribution rules. Consult a tax advisor before electing this option.

Life Income. You may choose between:

• No Period Certain (fixed or variable)-Payments will be made only during the annuitant’s lifetime.

• 10 Years Certain (fixed or variable)-Payments will be made for the longer of the annuitant’s lifetime or ten years.

• Guaranteed Return of Policy Proceeds (fixed only)-Payments will be made for the longer of the annuitant’s lifetime or until the total dollar amount of payments we made to you equals the annuitized amount.

• Life with Emergency Cash^® (fixed or variable)-Payments will be made during the annuitant’s lifetime. With the Life with Emergency Cash^® feature, you are able to surrender all or a portion of the Life with Emergency Cash^® benefit. The amount you surrender must be at least $2,500. We will provide you with a Life with Emergency Cash^® benefit schedule that will assist you in estimating the amount you have available to surrender. A partial surrender will reduce all future payments pro rata. A surrender charge may apply and there may be tax consequences (consult a tax advisor before requesting a full or partial surrender). The maximum surrender charge is 4% of the annuitized amount (see “Expenses” for the surrender charge schedule). You will be subject to whatever surrender schedule is in effect at the time you annuitize under this annuity payment option. The Life with Emergency Cash^® benefit will continue through age 100 of the annuitant.

The Life with Emergency Cash^® benefit is also a death benefit that is paid upon the death of the annuitant and is generally equal to the surrender value without any surrender charges. For qualified policies the death benefit ceases on the date the annuitant reaches the IRS age limitation.

Joint and Survivor Annuity. You may choose:

• No Period Certain (fixed or variable)-Payments are made during the joint lifetime of the annuitant and a joint annuitant of your selection. Payments will be made as long as either person is living.

• Life with Emergency Cash^® (fixed or variable)-Payments will be made during the joint lifetime of the annuitant and a joint annuitant of your selection. Payments will be made as long as either person is living. With the Life with Emergency Cash^® feature, you are able to surrender all or a portion of the Life with Emergency Cash^® benefit. The amount you surrender must be at least $2,500. We will provide you with a Life with Emergency Cash^® benefit schedule that will assist you in estimating the amount you have available to surrender. A partial surrender will reduce all future payments pro rata. A surrender charge may apply and there may be tax consequences (consult a tax advisor before requesting a full or partial surrender). The maximum surrender charge is 4% of the annuitized amount (see “Expenses” for the surrender charge schedule). You will be subject to whatever surrender schedule is in effect at the time you annuitize under this annuity payment option. The Life with Emergency Cash^® benefit will continue through age 100 of the surviving joint annuitant.

The Life with Emergency Cash^® benefit is also a death benefit that is paid upon the death of the surviving joint annuitant and is generally equal to the surrender value without any surrender charges. For qualified policies the death benefit ceases on the date the surviving joint annuitant reaches the IRS joint age limitation.

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Other annuity payment options may be arranged by agreement with the Company. Some annuity payment options may not be available for all policies.

NOTE CAREFULLY

IF:

• you choose Life Income with No Period Certain or a Joint and Survivor Annuity with No Period Certain; and

• the annuitant dies (or both joint annuitants die) before the due date of the second (third, fourth, etc.) annuity payment;

THEN:

• we may make only one (two, three, etc.) annuity payments.

IF:

• you choose Income for a Specified Period, Life Income with 10 Years Certain, Life Income with Guaranteed Return of Policy Proceeds, or Income of a Specified Amount; and

• the person receiving payments dies prior to the end of the guaranteed period;

THEN:

• the remaining guaranteed payments will be continued to a new payee, or their present value may be paid in a single sum.

However, IF:

• you choose Life with Emergency Cash^®; and

• the annuitant dies (if both joint annuitants die) before age 101;

THEN:

• a Life with Emergency Cash^® death benefit will be paid.

We will not pay interest on amounts represented by uncashed annuity payment checks if the postal or other delivery service is unable to deliver checks to the payee’s address of record. The person receiving payments is responsible for keeping the Company informed of his/her current address.

You must annuitize your policy no later than the maximum annuity commencement date specified in your policy (earlier for certain distribution channels). If you do not elect an annuity payment option, the default option will be Life with 10 Years Certain option. Please note, all optional benefits (including guaranteed minimum death benefits and living benefits) terminate upon annuitization.

8. DEATH BENEFIT

We will pay a death benefit to your beneficiary, under certain circumstances, if the annuitant dies during the accumulation phase. If there is a surviving owner(s) when the annuitant dies, the surviving owner(s) will receive the death benefit instead of the listed beneficiary. The person receiving the death benefit may choose an annuity payment option, or may choose to receive a lump sum.

We will determine the amount of and pay the death benefit proceeds, if any are payable on a policy, upon receipt at our Administrative and Service Office of satisfactory proof of the annuitant’s death, written directions from each eligible recipient of death benefit proceeds regarding how to pay the death benefit, and any other documents, forms and information that we need (collectively referred to as “due proof of death”).

Please Note: Such due proof of death must be submitted in good order to avoid a delay in processing the death benefit claim.

The death benefit proceeds remain invested in the separate account in accordance with the allocations made by the policy owner until the beneficiary has provided us with due proof of death. Once the Company receives due proof of death, then investments in the separate account may be reallocated in accordance with the beneficiary’s instructions. The Company may permit the beneficiary to give a “one-time” instruction to reallocate the investments in the separate account to

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the money market fund after the death of the annuitant but before receiving due proof of death. If there is more than one beneficiary, all beneficiaries must agree to the reallocation instructions.

When We Pay A Death Benefit

We will pay a death benefit IF:

• you are both the annuitant and sole owner of the policy; and

• you die before the annuity commencement date.

We will pay a death benefit to you (owner) IF:

• you are not the annuitant; and

• the annuitant dies before the annuity commencement date.

If the only person receiving the death benefit is the surviving spouse, then he or she may elect to continue the policy as the new annuitant and owner, instead of receiving the death benefit.

When We Do Not Pay A Death Benefit

We will not pay a death benefit IF:

• you are not the annuitant; and

• you die prior to the annuity commencement date.

Please note the new owner (unless it is the deceased owner’s spouse) must generally surrender the policy within five years of your death.

Distribution requirements apply to the policy value upon the death of any owner. These distribution requirements are detailed in the SAI.

Deaths After the Annuity Commencement Date

The death benefit payable, if any, on or after the annuity commencement date depends on the annuity payment option selected.

IF:

• you are not the annuitant; and

• you die on or after the annuity commencement date; and

• the entire interest in the policy has not been paid;

THEN:

• the remaining portion of such interest in the policy will continue to be distributed at least as rapidly as under the method of distribution being used as of the date of your death.

IF:

• annuity payments are being made under the Life with Emergency Cash^®; and

• the annuitant dies before age 101 (or earlier, if a qualified policy);

THEN:

• a Life with Emergency Cash^® death benefit will be paid.

Succession of Ownership

If an owner dies during the accumulation phase, the person or entity first listed below who is alive or in existence on the date of that death will become the new owner:

• any surviving owner;

• primary beneficiary;

• contingent beneficiary; or

• owner’s estate.

Amount of Death Benefit

Death benefit provisions may differ from state to state. The death benefit may be paid as a lump sum or as annuity payments. The amount of the death benefit depends on the guaranteed minimum death benefit option, if any, you choose when you buy the policy. The “base policy” death benefit will generally be the greatest of:

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• the policy value on the date we receive the required information in good order at our Administrative and Service Office;

• the cash value on the date we receive the required information in good order at our Administrative and Service Office (this will be more than the policy value if there is a positive excess interest adjustment);

• and the guaranteed minimum death benefit (discussed below), plus premium payments (after the date of death), less adjusted partial surrenders, from the date of death to the date the death benefit is paid. Please see “Appendix - Death Benefit” for illustrative examples regarding Death Benefit calculations.

Please note, the death benefit terminates upon annuitization and there is a maximum annuity commencement date.

Guaranteed Minimum Death Benefit

NOTE: The following generally applies, depending on the state of issue, to policies issued after the date of this prospectus. See “Appendix - Policy Variations” for information about older policies.

On the policy application, you may generally choose a guaranteed minimum death benefit (age limitations may apply) for an additional fee. After the policy is issued, you cannot make an election and the death benefit cannot be changed.

Annual Step-Up Death Benefit

Under this option, on each policy anniversary prior to your 81st birthday, a new “stepped-up” death benefit is determined and becomes the guaranteed minimum death benefit for that policy year. This “step-up” death benefit is equal to:

• the largest policy value on the policy date or on any policy anniversary prior to the earlier of the annuitant’s date of death or the annuitant’s 81st birthday; plus

• any premium payments since the date of any policy anniversary with the largest policy value; minus

• any adjusted partial surrenders since the date of the policy anniversary with the largest policy value.

The Annual Step-Up Death Benefit is not available if you or the annuitant is 76 or older on the policy date. There is an extra charge for this death benefit of 0.20% annually.

Return of Premium Death Benefit

The Return of Premium Death Benefit is equal to:

• total premium payments; less

• any adjusted partial surrenders as of the date of death.

This benefit is not available if you or the annuitant is 91 or older on the policy date. The Return of Premium Death Benefit will be in effect if you do not choose another death benefit option when you purchase your policy.

Please note: You will not receive an optional guaranteed minimum death benefit if you do not choose one when you purchase your policy.

The Guaranteed Minimum Death Benefit may vary for certain policies and may not be available for all policies. This disclosure explains the material features of the Guaranteed Minimum Death Benefit. The application and operation of the Guaranteed Minimum Death Benefit are governed by the terms and conditions of the policy form and riders.

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Adjusted Partial Surrender

When you request a partial surrender, your guaranteed minimum death benefit will be reduced by an amount called the adjusted partial surrender. Under certain circumstances, the adjusted partial surrender may be more than the dollar amount of your surrender request. This will generally be the case if the guaranteed minimum death benefit exceeds the policy value at the time of surrender. It is also possible that if a death benefit is paid after you have made a partial surrender, then the total amount paid could be less than the total premium payments. We have included a detailed explanation of this adjustment in the “Appendix – Death Benefit.” This is referred to as “adjusted partial surrender” in your policy. If you have a qualified policy, minimum required distributions rules may require you to request a partial surrender.

9. TAXES

NOTE: We have prepared the following information on federal income taxes as a general discussion of the subject. It is not intended as tax advice to any individual. No attempt is made to consider any applicable state or other income tax laws, any state and local estate or inheritance tax, or other tax consequences of ownership or receipt of distributions under the policy. You should consult your own tax adviser about your own circumstances. We have included an additional discussion regarding taxes in the SAI.

Annuity Policies in General

Deferred annuity policies are a way of setting aside money for future needs like retirement. Congress recognized how important saving for retirement is and provided special rules in the Internal Revenue Code for annuities.

Simply stated, these rules generally provide that individuals will not be taxed on the earnings, if any, on the money held in an annuity policy until taken out. This is referred to as tax deferral. When a non-natural person (e.g., corporation or certain other entities other than tax-qualified trusts) owns a nonqualified policy, the policy will generally not be treated as an annuity for tax purposes.

There are different rules as to how you will be taxed depending on how you take the money out and the type of policy-qualified or nonqualified.

You will generally not be taxed on increases in the value of your policy until a distribution occurs (either as a surrender or as annuity payments).

Qualified and Nonqualified Policies

If you purchase the policy under an individual retirement annuity, a 403(b) plan, a pension plan, or specially sponsored program, your policy is referred to as a qualified policy.

Qualified policies are issued in connection with the following:

• Individual Retirement Annuity (IRA): A traditional IRA allows individuals to make contributions, which may be deductible, to the policy. A Roth IRA also allows individuals to make contributions to the policy, but it does not allow a deduction for contributions, and distributions may be tax-free if the owner meets certain rules.

• Tax-Sheltered Annuity (403(b) Plan): A 403(b) Plan may be made available to employees of certain public school systems and tax-exempt organizations and permits contributions to the policy on a pre-tax basis. Pursuant to new tax regulations, starting January 1, 2009 the policy is not available for purchase under a 403(b) plan and we do not accept additional premiums or transfers to existing 403(b) policies. We generally are required to confirm, with your

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403(b) plan sponsor or otherwise, that surrenders, loans or transfers you request from an existing 403(b) policy comply with applicable tax requirements before we process your request.

• Corporate Pension and Profit-Sharing and H.R. 10 Plan: Employers and self-employed individuals can establish pension or profit-sharing plans for their employees or themselves and make contributions to the policy on a pre-tax basis.

• Deferred Compensation Plan (457 Plan): Certain governmental and tax-exempt organizations can establish a plan to defer compensation on behalf of their employees through contributions to the policy.

There is no additional tax deferral benefit derived from placing qualified funds into a variable annuity. Features other than tax deferral should be considered in the purchase of a qualified policy. There are limits on the amount of contributions you can make to a qualified policy. Other restrictions may apply including terms of the plan in which you participate.

Optional death benefit features in some cases may exceed the greater of the premium payments or the policy value. Such a death benefit could be characterized as an incidental benefit, the amount of which is limited in any pension or profit-sharing plan or 403(b) plan. Because an optional death benefit may exceed this limitation, anyone using the policy in connection with such plans should consult their tax adviser before purchasing an optional death benefit. The Internal Revenue Service has not reviewed the policy for qualification as an IRA, and has not addressed in a ruling of general applicability whether the death benefit options and riders available, with the policy, if any, comport with IRA qualification requirements. The value of death benefit options and riders elected may need to be considered in calculating minimum required distributions.

If you purchase the policy as an individual and not under an individual retirement annuity, 403(b) plan, 457 plan, or pension or profit sharing plan, your policy is referred to as a nonqualified policy.

Surrenders-Qualified Policies Generally

There are special rules that govern qualified policies. Generally, these rules restrict:

• the amount that can be contributed to the policy during any year;

• the time when amounts can be paid from the policy; and

• the amount of any death benefit that may be allowed.

In the case of a withdrawal under a qualified policy, a pro rata portion of the amount you receive is taxable, generally based on the ratio of your “investment in the contract” to your total account balance or accrued benefit under the retirement plan. Your “investment in the contract” generally equals the amount of any non-deductible purchase payments made by you or on your behalf. In some cases, your “investment in the contract” can be zero.

In addition, a penalty tax may be assessed on amounts surrendered from the policy prior to the date you reach age 59 ¹/2, unless you meet one of the exceptions to this rule. You may also be required to begin taking minimum distributions from the policy by a certain date. The terms of the plan may limit the rights otherwise available to you under the policy. We have provided more information in the SAI.

We may make available under the policy certain guaranteed lifetime withdrawal and other optional benefits. The tax rules for qualified policies may limit the value of these optional benefits. For example, if you elect a guaranteed lifetime withdrawal benefit and your minimum required distribution amount exceeds your guaranteed withdrawal amount, you will have to withdraw more than the guaranteed withdrawal amount to avoid imposition of a 50%

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excise tax. It is not clear whether guaranteed lifetime withdrawal benefit payments made during the settlement phase will be taxed as withdrawals or as annuity payments. In view of this uncertainty, we will apply the non-annuity rules for determining minimum required distributions, meaning that a percentage of the value of all benefits under the policy will need to be withdrawn each year. The value may have to include the value of enhanced death benefits and other optional policy provisions such as the guaranteed lifetime withdrawal benefit rider itself.

If you are attempting to satisfy minimum required distribution rules through partial surrenders, the value of any enhanced death benefit or other optional rider may need to be included in calculating the amount required to be distributed.

The Internal Revenue Code generally requires that interests in a qualified policy be nonforfeitable. If your policy contains a bonus rider with a recapture, forfeiture, or “vesting” feature, it may not be consistent with those requirements. Consult a tax advisor before purchasing a bonus rider as part of a qualified policy.

You should consult your legal counsel or tax adviser if you are considering purchasing an enhanced death benefit or other optional rider, or if you are considering purchasing a policy for use with any qualified retirement plan or arrangement.

Surrenders-403(b) Policies

The rules described above for qualified policies generally apply to 403(b) policies. However, specific rules apply to surrenders from certain 403(b) policies. Partial withdrawals and surrenders can generally only be made when an owner:

• reaches age 59 ¹/2;

• leaves his/her job;

• dies;

• becomes disabled (as that term is defined in the Internal Revenue Code); or

• declares hardship. However, in the case of hardship, the owner can only surrender the premium payments and not any earnings.

Please Note: In some instances the signature of the employer may be required. For policies issued after 2008, amounts attributable to nonelective contributions may be subject to distribution restrictions specified in the employer’s section 403(b) plan.

Pursuant to new tax regulations, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders or transfers you request from a 403(b) policy comply with applicable tax requirements before we process your request. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender or transfer, you consent to the sharing of confidential information about you, the policy, and transactions under the policy and any other 403(b) policies or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.

Defaulted loans from Code Section 403(b) arrangements, and pledges and assignments of qualified policies generally are taxed in the same manner as surrenders from such policies. Please refer to the SAI for further information applicable to distributions from 403(b) policies. Please note that a defaulted loan may stop the growth on a guaranteed lifetime withdrawal benefit.

Surrenders-Nonqualified Policies

The information above describing the taxation of qualified policies does not apply to nonqualified policies. If you take a partial withdrawal or surrender (including systematic payouts and payouts under an optional feature, if any) from a nonqualified policy

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before the annuity commencement date, the Internal Revenue Code treats that surrender as first coming from earnings and then from your premium payments. If your policy contains an excess interest adjustment feature (also known as a market value adjustment), then your account value immediately before the surrender may have to be increased by any positive excess interest adjustments that result from the surrender. There is, however, no definitive guidance on the proper tax treatment of excess interest adjustments, and you may want to discuss the potential tax consequences of an excess interest adjustment with your tax advisor.

When you make a surrender you are taxed on the amount of the surrender that is earnings. If you make a surrender, you are generally taxed on the amount that your surrender proceeds exceeds the “investment in the contract,” which is generally your premiums paid (adjusted for any prior surrenders or portions thereof that were not taxable). In general, loans, pledges, and assignments are taxed in the same manner as partial withdrawals and surrenders. Different rules apply for annuity payments. See “Annuity Payments” below.

The Internal Revenue Code also provides that surrendered earnings may be subject to a penalty tax. The amount of the penalty tax is equal to 10% of the amount that is includable in income. Some surrenders will be exempt from the penalty tax. They include, among others, any amounts:

• paid on or after the taxpayer reaches age 59 ¹/2;

• paid after an owner dies;

• paid if the taxpayer becomes disabled (as that term is defined in the Internal Revenue Code);

• paid in a series of substantially equal payments made annually (or more frequently) under a lifetime annuity;

• paid under an immediate annuity; or

• which come from premium payments made prior to August 14, 1982.

If your nonqualified policy contains a guaranteed lifetime withdrawal benefit rider, certain rules may apply. It is not clear whether guaranteed lifetime withdrawal benefit payments made during the settlement or income (payout) phase may be taxed as either withdrawals or annuities. In view of this uncertainty, we intend to adopt a conservative approach and treat guaranteed lifetime withdrawal payments during the settlement phase under nonqualified policies as withdrawals. Consult a tax advisor before purchasing a guaranteed lifetime withdrawal benefit rider or option.

All nonqualified deferred annuity policies that are issued by us (or our affiliates) to the same owner during any calendar year are treated as one annuity for purposes of determining the amount includable in the owner’s income when a taxable distribution occurs.

Taxation of Death Benefit Proceeds

Amounts may be distributed from the policy because of the death of the annuitant. Generally, such amounts should be includable in the income of the recipient:

• if distributed in a lump sum, these amounts are taxed in the same manner as a surrender; or

• if distributed under an annuity payment option, these amounts are taxed in the same manner as annuity payments.

Annuity Payments

Although the tax consequences may vary depending on the annuity payment option you select, in general, for nonqualified and certain qualified policies, only a portion of the annuity payments you receive will be includable in your gross income.

In general, the excludable portion of each annuity payment you receive will be determined as follows:

• Fixed payments-by dividing the “investment in the contract” on the annuity commencement

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date by the total expected value of the annuity payments for the term of the payments. This is the percentage of each annuity payment that is excludable.

• Variable payments-by dividing the “investment in the contract” on the annuity commencement date by the total number of expected periodic payments. This is the amount of each annuity payment that is excludable.

The remainder of each annuity payment is includable in gross income. Once the “investment in the contract” has been fully recovered, the full amount of any additional annuity payments is includable in gross income and taxed as ordinary income.

If you select more than one annuity payment option, special rules govern the allocation of the policy’s entire “investment in the contract” to each such option, for purposes of determining the excludable amount of each payment received under that option. We advise you to consult a competent tax adviser as to the potential tax effects of allocating amounts to any particular annuity payment option.

If, after the annuity commencement date, annuity payments stop because an annuitant died, the excess (if any) of the “investment in the contract” as of the annuity commencement date over the aggregate amount of annuity payments received that was excluded from gross income may possibly be allowable as a deduction in your tax return.

You should consult a tax advisor before electing the Initial Payment Guarantee or a feature with stabilized payments.

Partial Annuitization

Under a new tax provision enacted in 2010, if part of an annuity policy’s value is applied to an annuity option that provides payments for one or more lives and for a period of at least ten years, those payments may be taxed as annuity payments instead of withdrawals. None of the payment options under the policy is intended to qualify for this “partial annuitization” treatment and, if you apply only part of the value of the policy to a payment option, we will treat those payments as withdrawals for tax purposes.

Medicare Tax

Beginning in 2013, distributions from nonqualified annuity policies will be considered “investment income” for purposes of the newly enacted Medicare tax on investment income. Thus, in certain circumstances, a 3.8% tax may be applied to some or all of the taxable portion of distributions (e.g. earnings) to individuals whose income exceeds certain threshold amounts ($200,000 for filing single, $250,000 for married filing jointly and $125,000 for married filing separately). Please consult a tax advisor for more information.

Diversification and Distribution Requirements

The Internal Revenue Code provides that the underlying investments for a variable annuity must satisfy certain diversification requirements in order to be treated as an annuity. The policy must also meet certain distribution requirements at the death of an owner in order to be treated as an annuity. These diversification and distribution requirements are discussed in the SAI. We may modify the policy to attempt to maintain favorable tax treatment.

Federal Defense of Marriage Act

The Federal Defense of Marriage Act currently does not recognize same-sex marriages or civil unions, even those that are permitted under individual state laws. Therefore, exercise of the spousal continuation provisions of this policy by persons who do not meet the definition “spouse” under federal law—e.g., civil union partners or same-sex marriage spouses—may have adverse tax consequences. Consult a tax advisor for more information on this subject.

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Federal Estate Taxes

While no attempt is being made to discuss the Federal estate tax implications of the Policy, a purchaser should keep in mind that the value of an annuity policy owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent’s gross estate. Depending on the terms of the annuity policy, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning advisor for more information.

Generation-Skipping Transfer Tax

Under certain circumstances, the Internal Revenue Code may impose a “generation skipping transfer tax” when all or part of an annuity policy is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Owner. Regulations issued under the Internal Revenue Code may require us to deduct the tax from your policy, or from any applicable payment, and pay it directly to the IRS.

Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “2010 Act”) increases the federal estate tax exemption to $5,000,000 and reduces the federal estate tax rate to 35%; increases the Federal gift tax exemption to $5,000,000 and retains the federal gift tax rate at 35%; and increases the generation-skipping transfer tax exemption to $5,000,000 and reduces the generation-skipping transfer tax rate to 35%. Commencing in 2012, these exemption amounts will be indexed for inflation.

The estate, gift, and generation-skipping transfer provisions of the 2010 Act are only effective until December 31, 2012; thereafter, the provisions will sunset, and the federal estate, gift and generation-skipping transfer taxes will return to their pre-2001 levels, resulting in significantly lower exemptions and significantly higher tax rates. Between now and the end of 2012, Congress may make these provisions of the 2010 Act permanent, or they may do nothing and allow these 2010 Act provisions to sunset, or they may alter the exemptions and/or applicable tax rates.

The uncertainty as to how the current law might be modified in coming years underscores the importance of seeking guidance from a qualified adviser to help ensure that your estate plan adequately addresses your needs and that of your beneficiaries under all possible scenarios.

Annuity Purchases by Residents of Puerto Rico

The Internal Revenue Service recently announced that income received by residents of Puerto Rico under life insurance or annuity policies issued by a Puerto Rico branch of a United States life insurance company is U.S.-source income that is generally subject to United States federal income tax.

Annuity Policies Purchased by Nonresident Aliens and Foreign Corporations

The discussion above provided general information (but not tax advice) regarding U.S. federal income tax consequences to annuity owners that are U.S. persons. Taxable distributions made to owners who are not U.S. persons will generally be subject to U.S. federal income tax withholding at a 30% rate, unless a lower treaty rate applies. In addition, distributions may be subject to state and/or municipal taxes and taxes that may be imposed by the owner’s country of citizenship or residence. Prospective foreign owners

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are advised to consult with a qualified tax adviser regarding U.S., state, and foreign taxation for any annuity policy purchase.

Transfers, Assignments or Exchanges of Policies

A transfer of ownership or assignment of a policy, the designation of an annuitant or payee or other beneficiary who is not also the owner, the selection of certain annuity commencement dates, the exchange of a policy and certain other transactions, or a change of annuitant other than the owner, may result in certain income or gift tax consequences to the owner that are beyond the scope of this discussion. An owner contemplating any such transfer, assignment, selection, exchange or change should contact a competent tax adviser with respect to the potential tax effects of such a transaction.

Possible Tax Law Changes

Although the likelihood of legislative or regulatory changes is uncertain, there is always the possibility that the tax treatment of the policy could change by legislation, regulation, or otherwise. You should consult a tax adviser with respect to legal or regulatory developments and their effect on the policy.

We have the right to modify the policy to meet the requirements of any applicable laws or regulations, including legislative changes that could otherwise diminish the favorable tax treatment that annuity policy owners currently receive.

Separate Account Charges

It is possible that the Internal Revenue Service may take a position that fees for certain optional benefits (e.g., death benefits other than the Return of Premium death benefit) are deemed to be taxable distributions to you. In particular, the Internal Revenue Service may treat fees associated with certain optional benefits as a taxable surrender, which might also be subject to a tax penalty if the surrender occurs prior to age 59 ¹/2. Although we do not believe that the fees associated with any optional benefit provided under the policy should be treated as taxable surrenders, the tax rules associated with these benefits are unclear, and we advise that you consult your tax advisor prior to selecting any optional benefit under the policy.

Foreign Tax Credits

We may benefit from any foreign tax credits attributable to taxes paid by certain underlying funds to foreign jurisdictions to the extent permitted under federal tax law.

Guaranteed Lifetime Withdrawal Benefits

We may make available, as options under the policy, certain guaranteed lifetime withdrawal and other optional benefits. If your policy contains a guaranteed lifetime withdrawal benefit rider the application of certain tax rules, particularly those rules relating to distributions from your policy, are not entirely clear. The tax rules for qualified policies may limit the value of these optional benefits. In view of this uncertainty, you should consult a tax advisor before purchasing a guaranteed lifetime withdrawal benefit rider for a qualified policy.

10. ADDITIONAL FEATURES

Systematic Payout Option

You can select at any time (during the accumulation phase) to receive regular withdrawals (i.e., partial surrenders) from your policy by using the Systematic Payout Option. Under this option, you can receive the greater of (1) or (2), divided by the number of withdrawals made per year, where: (1) up to 10% of your premium payments (reduced by prior withdrawals in that policy year); and (2) is any gains

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in the policy. For amounts greater than 10% of your premium payments, you must receive prior Company approval.

Any payment in excess of the cumulative interest credited at the time of the payment may be subject to an excess interest adjustment.

Systematic withdrawals can be made monthly, quarterly, semi-annually, or annually. Each withdrawal must be at least $50. Monthly and quarterly withdrawals must generally be made by electronic funds transfer directly to your checking or savings account.

If you request an additional withdrawal while a Systematic Payout Option is in effect, then the Systematic Payout Option will terminate.

Keep in mind that partial withdrawals under the Systematic Payout Option may be taxable, and if made before age 59 ¹/2, may be subject to a 10% federal penalty tax.

Please note, if you elect certain features (e.g. living benefit riders) your Systematic Payout Option may be different for the first year.

There is no charge for this benefit.

Income Benefit Programs

The Family Income Protector and Managed Annuity Programs are no longer available for new sales, but if you have previously elected one of these benefits you can still upgrade. If you upgrade your minimum annuitization value or minimum income base, you will generally receive the Managed Annuity Program II.

Initial Payment Guarantee

You may only elect to purchase the Initial Payment Guarantee at the time you annuitize your policy. You cannot terminate this payment guarantee (or eliminate the charge for it) after you have elected it. The guarantee only applies to variable annuity payments. There is an additional charge for this guarantee.

The Initial Payment Guarantee does not establish or guarantee the performance of any subaccount.

Under the Initial Payment Guarantee, you receive annuity payments that are stabilized—that is, held level throughout each policy year—and are guaranteed to never be less than a percentage of the initial payment. The guaranteed percentage is subject to change from time to time; however once you annuitize, the guaranteed percentage will not change during the life of the Initial Payment Guarantee. Contact us for the current guaranteed percentage.

The payment amount is adjusted once each year (on the anniversary of your annuity commencement date) to reflect the investment performance of your selected investment choice(s) over the preceding year (but your payment will not be less than the guaranteed minimum).

Fee. There is a charge for the Initial Payment Guarantee, which is in addition to the base product mortality and expense risk fee and administrative charge. This fee is reflected in the amount of the annuity payments that you receive if you select the Initial Payment Guarantee. It is reflected in the calculation of the annuity unit values.

The Initial Payment Guarantee fee is currently equal to an annual rate of 1.25% of the daily net asset value in the subaccounts. We can change the fee, and you pay whatever the fee is when you annuitize.

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Other Terms and Conditions. The Initial Payment Guarantee uses a 5% assumed investment return to calculate your annuity payments. This means that the dollar amount of the annuity payments will remain level if the investment return (net of fees and expenses) exactly equals 5%. The payments will increase if actual investment performance (net of fees and expenses) exceeds the assumed investment return, and decrease if actual performance is below the assumed investment return (but not below the guaranteed level).

Termination. The Initial Payment Guarantee is irrevocable.

The Initial Payment Guarantee may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Initial Payment Guarantee. The application and operation of the Initial Payment Guarantee are governed by the terms and conditions of the policy itself.

Additional Death Distribution

The optional Additional Death Distribution rider pays an additional amount (based on earnings, if any, since the rider was issued) when a death benefit is payable during the accumulation phase under your policy, in certain circumstances. The Additional Death Distribution is only available for issue ages through age 80.

Additional Death Distribution Benefit Amount. The Additional Death Distribution is payable only if you elected the rider prior to the death triggering the payment of the policy death benefit and a death benefit is payable under the policy. The Additional Death Distribution is equal to:

• the Additional Death Distribution factor (see below); multiplied by

• the rider earnings, if any, on the date the death benefit is calculated.

Rider earnings equal:

• the policy value on the date the death benefit is determined; minus

• policy value on the rider date; minus

• premium payments after the rider date; plus

• surrenders after the rider date that exceed the rider earnings on the date of the surrender.

No benefit is payable under the Additional Death Distribution rider if there are no rider earnings on the date the death benefit is calculated.

If you purchase your policy as part of a 1035 exchange or add the Additional Death Distribution rider after you purchase the policy, rider earnings do not include any gains before the 1035 exchange or the date the Additional Death Distribution is added to your policy.

The Additional Death Distribution factor is currently 40% for issue ages under 71 and 25% for issue ages 71-80, based on the annuitant’s age.

No benefit is paid under the rider unless (a) the rider is in force, (b) a death benefit is payable on the policy, and (c) there are rider earnings when the death benefit is calculated.

For purposes of computing taxable gains, both the death benefit payable under the policy and the Additional Death Distribution will be considered.

Please see “Appendix – Additional Death Distribution—Additional Information” for an example which illustrates the Additional Death Distribution payable as well as the effect of a partial surrender on the Additional Death Distribution benefit amount.

Spousal Continuation. If a spouse, as the new owner of the policy, elects to continue the policy instead of receiving a death benefit and Additional Death Distribution, the spouse will receive a one-time policy value increase equal to the Additional Death

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Distribution. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider through age 80. Please note that under federal tax law, upon the death of an owner, only a “spouse” as defined under the Federal Defense of Marriage Act is permitted to continue a policy without taking required distributions. (The payment of a death benefit under the policy is triggered by the death of the annuitant.)

Rider Fee. A rider fee, 0.25% of the policy value, is deducted annually on each rider anniversary prior to annuitization. We will also deduct this fee upon full surrender of the policy or other termination of the rider. The rider fee is deducted pro rata from each investment choice. The fee is deducted even during periods when the Additional Death Distribution would not pay any benefit (because there are no rider earnings).

Termination. The rider will remain in effect until:

• you cancel it by notifying our Administrative and Service Office in writing,

• the policy is annuitized or surrendered, or

• the Additional Death Distribution is paid or added to the policy value under a spousal continuation.

Once terminated, the Additional Death Distribution may be re-elected; however, a new rider will be issued and the additional death benefit will be re-determined. Please note that if the rider is terminated and then re-elected, it will only cover gains, if any, since it was re-elected and the terms of the new rider may be different than the terminated rider.

The tax consequences associated with this rider are not clear. This rider may violate the requirements of certain qualified plans and IRAs. Consult a tax advisor before electing this rider for any qualified plan or IRA.

Please note: This feature terminates upon annuitization and there is a mandatory annuitization date.

The Additional Death Distribution may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Additional Death Distribution. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Additional Death Distribution+

The optional Additional Death Distribution+ rider pays an additional death benefit amount when a death benefit is payable during the accumultion phase under your policy, in certain circumstances. The Additional Death Distribution+ is only available for issue ages through age 75.

Additional Death Distribution+ Benefit Amount. An additional death benefit is only payable if a death benefit is paid on the base policy to which the rider is attached. The amount of the additional benefit is dependent on the amount of time that has passed since the rider date as follows:

• If a death benefit is payable within the first five years after the rider date, the additional benefit amount will be equal to the sum of all rider fees paid since the rider date.

• If a death benefit is payable after five years following the rider date, the additional benefit will be equal to the rider benefit base multiplied by the rider benefit percentage.

The rider benefit base at any time is equal to the policy value less any premiums added after the rider date.

The rider benefit percentage may vary but currently equals 30% for issue ages 0 - 70 and 20% for issue ages 71 - 75, based on the annuitant’s age.

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No benefit is payable under the Additional Death Distribution+ if the policy value on the date the death benefit is paid is less than the premium payments after the rider date.

For purposes of computing taxable gains, both the death benefit payable under the policy and the additional benefit will be considered.

Please see “Appendix – Additional Death Distribution+—Additional Information” for an example that illustrates the additional death benefit payable as well as the effect of a partial surrender on the Additional Death Distribution+ benefit amount.

Spousal Continuation. If a spouse, as the new owner of the policy, elects to continue the policy instead of receiving the death benefit and Additional Death Distribution+, then the spouse will receive a one-time policy value increase equal to the Additional Death Distribution+. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider through age 75. Please note that under federal tax law, upon the death of an owner, only a “spouse” as defined under the Federal Defense of Marriage Act is permitted to continue a policy without taking required distributions. (The payment of a death benefit under the policy is triggered by the death of the annuitant.)

Rider Fee. A rider fee, currently 0.55% of the policy value, is deducted annually on each rider anniversary prior to annuitization. We will also deduct this fee upon full surrender of the policy or other termination of the rider.

Please note: the rider fee is deducted pro rata from each investment choice. The fee is deducted even during periods when the rider would not pay any benefits.

Termination. The rider will remain in effect until:

• you cancel it by notifying our Administrative and Service Office in writing in good order,

• the policy is annuitized or surrendered, or

• the additional death benefit is paid or added to the policy value under a spousal continuation.

Once terminated, the Additional Death Distribution+ may not be re-elected for one year.

The tax consequences associated with this rider are not clear. This rider may violate the requirements of certain qualified plans and IRAs. Consult a tax adviser before electing this rider for any qualified plan or IRA.

Please note: This feature terminates upon annuitization and there is a maximum annuiity commencement date.

The Additional Death Distribution+ may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Additional Death Distribution+. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Nursing Care and Terminal Condition Withdrawal Option

No excess interst adjustment will apply if you make a surrender ($1,000 minimum), under certain circumstances, because you or your spouse has been:

• confined in a hospital or nursing facility for 30 days in a row after the policy issue date; or

• diagnosed with a terminal condition after the policy issue date (usually a life expectancy of 12 months or less).

This benefit is also available to the annuitant or annuitant’s spouse if the owner is not a natural person.

You may exercise this benefit at any time (during the accumulation phase). There is no charge for this benefit.

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There is no restriction on the maximum amount you may surrender under this benefit.

This benefit may vary for certain policies, may not be available for all policies, and may not be available in all states.

Unemployment Waiver

No excess interst adjustment will apply to surrenders after you or your spouse become unemployed in certain circumstances, because you were terminated, laid off, or otherwise lost your job involuntarily. In order to qualify, you (or your spouse, whichever is applicable) must have been:

• employed full time for at least two years prior to becoming unemployed;

• employed full time on the policy date;

• unemployed for at least 60 days in a row at the time of surrender;

• must have a minimum cash value at the time of surrender of $5,000; and

• you (or your spouse) must be receiving unemployment benefits.

You must provide written proof from your State’s Department of Labor, which verifies that you qualify for and are receiving unemployment benefits at the time of surrender.

You may select this benefit at any time (during the accumulation phase) and there is no charge for this benefit.

This benefit is also available to the annuitant or annuitant’s spouse if the owner is not a natural person. There is no charge for this benefit.

There is no restricion on the maximum amount you may surrender under this benefit.

This benefit may vary for certain policies, may not be available for all policies, and may not be available in all states.

Telephone Transactions

You may generally make certain transactions by telephone upon our receipt of the appropriate authorization.

You will be required to provide certain information for identification purposes when requesting a transaction by telephone and we may record your telephone call. We may also require written confirmation of your request. We will not be liable for losses resulting from telephone requests that we believe are genuine. We reserve the right to revoke your telephone transaction privileges at any time without revoking all owners’ telephone transfer privileges.

Telephone requests must be received while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. We may discontinue this option at any time.

We may deny the telephone transaction privileges to market timers and frequent or disruptive traders.

We cannot guarantee that telephone transactions will always be available. For example, our offices may be closed during severe circumstances or other emergencies. There may be interruptions in service beyond our control, and if the volume of calls is unusually high, we might not have anyone available, or lines available, to take your call. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability in all circumstances.

Dollar Cost Averaging Program

During the accumulation phase, you may instruct us to automatically make transfers into one or more variable subaccounts in accordance with your allocation instructions. This is known as Dollar Cost Averaging. While Dollar Cost Averaging buys more accumulation units when prices are low and fewer

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accumulation units when prices are high, it does not guarantee profits or assure that you will not experience a loss.

There are two Dollar Cost Averaging programs available under your policy:

• Traditional—You may specify the dollar amount to be transferred or the number of transfers.Transfers will begin as soon as the program is started.

• Special—You may only elect either a six or twelve month program. Transfers will begin as soon as the program is started. You cannot transfer from another investment choice into a Special Dollar Cost Averaging program. This program is only available for new premium, requires transfers from a fixed source, and may credit a higher or lower interest rate than a traditional program.

A minimum of $500 per transfer is required. A minimum of $3,000 is required to start a 6-month program and $6,000 is required to start a 12-month program. The minimum number of transfers is 6 monthly or 4 quarterly, and the maximum is 24 monthly or 8 quarterly.

You can elect to transfer from one of the fixed or variable sources listed on the Dollar Cost Averaging election form (only fixed sources are available for special Dollar Cost Averaging programs).

A Dollar Cost Averaging program will begin once we have received in good order all necessary information and the minimum required amount. Please note: Dollar Cost Averaging programs will not begin on the 29th, 30th, or 31st. If a program would have started on one of those dates, it will start on the 1st business day of the following month. If we receive additional premium payments while a Dollar Cost Averaging program is running, absent new instructions to the contrary, the amount of the Dollar Cost Averaging transfers will increase, but the length of the Dollar Cost Averaging program will not.

NOTE CAREFULLY:

IF:

• we do not receive all necessary information to begin an initial Dollar Cost Averaging program within 30 days of allocating the minimum required amount to a Dollar Cost Averaging program; or

• we do not receive the minimum required amount to begin an initial Dollar Cost Averaging program within 30 days of allocating an insufficient amount;

THEN:

• any amount in a fixed source will be transferred to the money market investment choice; and

• any amount in a variable source will remain in that variable investment choice; and

• new instructions will be required to begin a Dollar Cost Averaging program.

IF:

• we receive additional premium payments after a Dollar Cost Averaging program is completed and the additional premium meets the minimum requirements to start a Dollar Cost Averaging program;

THEN:

• we will, absent new instructions to the contrary, start a new Dollar Cost Averaging program using the previous instructions.

IF:

• we receive additional premium payments after a Dollar Cost Averaging program is completed, and the additional premium does not meet the minimum requirements to start a Dollar Cost Averaging program;

THEN:

• we will, absent new instructions to the contrary, allocate the additional premium as identified in the previous Dollar Cost Averaging program.

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IF:

• you discontinue a Dollar Cost Averaging program before its completion;

THEN:

• we will, absent new instructions to the contrary, transfer any remaining balance directly into the subaccounts in the Dollar Cost Averaging instructions.

You should consider your ability to continue a Dollar Cost Averaging program during all economic conditions.

There is no charge for this benefit.

The Dollar Cost Averaging Program may vary for certain policies, may not be available for all policies, and may not be available in all states. See your policy for availability of the fixed account options.

Asset Rebalancing

During the accumulation phase you can instruct us to automatically rebalance the amounts in your subaccounts to maintain your desired asset allocation. This feature is called Asset Rebalancing and can be started and stopped at any time. However, we will not rebalance if you are in the Dollar Cost Averaging program or if any other transfer is requested. If a transfer is requested, we will honor the requested transfer and discontinue Asset Rebalancing. New instructions are required to start Asset Rebalancing. Asset Rebalancing ignores amounts in the fixed account. You can choose to rebalance monthly, quarterly, semi-annually, or annually.

There is no charge for this benefit.

Guaranteed Lifetime Withdrawal Benefits

You may elect one of the following optional riders under the policy that offers guaranteed lifetime withdrawal benefits – the Living Benefits Rider, the Retirement Income Choice^® 1.2 Rider, the Income Link^® Rider or the Retirement Income Max^SM Rider. Important aspects of each of these riders are summarized in the “Appendix – Guaranteed Lifetime Withdrawal benefit Comparison Table” and are described in more detail below. You should consult with tax and financial professionals to determine which of these riders is appropriate for you.

The following benefits are no longer available for new sales, but if you have previously elected one of these riders you can still upgrade:

• 5 for Life Rider

• 5 for Life with Growth Rider

• Income Select for Life Rider

• Retirement Income Choice^® Rider

• Retirement Income Choice^® with Double Withdrawal Base Benefit Rider

• Retirement Income Choice^® 1.4 Rider

Living Benefits Rider

You may elect to purchase the optional Living Benefits Rider which provides you with a guaranteed minimum accumulation benefit and a guaranteed minimum withdrawal benefit. The Living Benefits Rider is only available during the accumulation phase. The Living Benefits Rider is only available for annuitant issue ages through age 80. The maximum issue age may be lower if required by state law.

You should view the Living Benefits Rider as a way to permit you to invest in variable investment choices while still having your policy value and liquidity protected to the extent provided by the Living Benefits Rider.

Please note:

• Certain protections under the rider are available only if you hold the rider for ten years.

• If you elect the rider, we will monitor your policy value and we may transfer amounts back and forth between specified investment choices under the policy (including guaranteed period options in the fixed account) and the variable

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investment choices you choose, according to a mathematical model that we will use to assist us in managing portfolio risk and supporting the guarantees under the rider. See “Portfolio Allocation Method” below.

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider for you to take withdrawals each rider year that are less than or equal to the maximum annual withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the maximum annual withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• Because the guaranteed minimum withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the maximum annual withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take the maximum advantage of the tax deferral aspect of the policy.

• The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Living Benefits Rider for a qualified policy.

• Any such transfers out of a guaranteed period option may be subject to an excess interest adjustment. We intend to include among the specified investment choices fixed account options to which excess interest adjustments do not apply. (See “Portfolio Allocation Method,” below.)

Guaranteed Minimum Accumulation Benefit

If you elect the Living Benefits Rider, we will provide a guaranteed future value. This benefit is intended to provide a level of protection regardless of the performance of the variable investment choices you select.

Guaranteed Future Value. We guarantee that, on the guaranteed future value date (ten years after you elect the rider), your policy value will at least equal your guaranteed future value. The guaranteed future value on the rider date (i.e., the date the rider is added to the policy) is the policy value (less any premium enhancements if the rider is added in the first policy year). After the rider date and before the guaranteed future value date, the guaranteed future value is equal to:

• the guaranteed future value on the rider date; plus

• a percentage of subsequent premium payments (as described below); less

• subsequent adjusted partial withdrawals (as described below).

After the guaranteed future value date, the guaranteed future value equals zero.

Subsequent Premium Payments. The percentage of subsequent premium payments that will be added to the guaranteed future value is as follows:

Rider Year	Percent of subsequent premium payments added to guaranteed future value
1	100%
2	90%
3	80%
4	70%
5	60%
6	50%
7	50%
8	50%
9	50%
10	0%

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Guaranteed Future Value Adjusted Partial Withdrawals. If you take a partial withdrawal, it will reduce your guaranteed future value. The amount of the reduction is referred to as the adjusted partial withdrawal amount, which will be equal to the greater of:

• the guaranteed future value immediately prior to the withdrawal multiplied by the percentage reduction in the policy value resulting from the gross partial withdrawal; or

• the gross partial withdrawal amount.

(The gross partial withdrawal amount is the amount you request, plus any excess interest adjustment that may be applicable.)

In other words, if your policy value is greater than the guaranteed future value at the time you make a partial withdrawal, then your guaranteed future value is reduced by the same amount we reduce your policy value. However, if your policy value is less than the guaranteed future value at the time you make a partial withdrawal, then your guaranteed future value will be reduced by more than the amount we reduce your policy value.

See the “Appendix—Living Benefits Rider Adjusted Partial Withdrawals” to this prospectus for examples showing the effect of hypothetical withdrawals in more detail, including withdrawals that reduce the guaranteed future value by more than the amount of the gross partial withdrawal.

Guaranteed Minimum Accumulation Benefit. On the guaranteed future value date (ten years after you elect the rider), if the policy value is less than the guaranteed future value, we will add an amount equal to the difference to your policy value. After the guaranteed future value date, the guaranteed minimum accumulation benefit will terminate.

Example. Assume you make a single premium payment of $100,000 and you do not make any withdrawals or additional premium payments. If, on the guaranteed future value date, your policy value has declined to $90,000 because of negative investment performance, then we will add $10,000 ($100,000 – $90,000) to your policy value.

Please note: You do not have any protection under the guaranteed minimum accumulation benefit unless you hold the policy with the rider for ten years. If you think that you may terminate the policy or elect to start receiving annuity payments (or if you must begin taking required minimum distributions) before the guaranteed future value date, electing the rider may not be in your best interests.

Guaranteed Minimum Withdrawal Benefit

If you elect the Living Benefits Rider, (first as withdrawals from your policy value or, if necessary, as payments from us) we will provide a maximum annual withdrawal amount regardless of your policy value. This benefit is intended to provide a level of benefits regardless of the performance of the variable investment choices you select.

Withdrawal Guarantees. We account for the withdrawals you take under the rider by applying two different withdrawal guarantees:

• “principal back,” for withdrawals of up to 7% of your total withdrawal base.

• “for life,” for withdrawals of up to 5% of your total withdrawal base.

When you make a withdrawal, you do not need to specify it as being under either withdrawal guarantee. Any withdrawals that you take while the rider is in effect could have different impacts under each of the withdrawal guarantees - on your maximum annual withdrawal amount, on your total withdrawal base, and on your minimum remaining withdrawal amount. For example, withdrawals that are compliant with the “principal back” maximum withdrawal amount could result in excess withdrawals under the “for life” withdrawal guarantee and, consequently, would reduce the maximum annual withdrawal

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amount, the total withdrawal base, and the minimum remaining withdrawal amount under the “for life” withdrawal guarantee. (See “Adjusted Partial Withdrawals” below.)

Your ability to change the frequency or amount of your withdrawals ceases if your policy value reaches zero.

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion. See “Appendix - Living Benefits Rider Adjusted Partial Withdrawals,” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the total withdrawal base by a pro rata amount.

Please note:

• Any amount withdrawn in a rider year (including any excess interest adjustment) in excess of the maximum withdrawal amount is an excess withdrawal.

• The amount of your excess withdrawal will impact the maximum annual withdrawal amount, total withdrawal base, and minimum remaining withdrawal amount under each guarantee on a greater than dollar-for-dollar basis. (See “Maximum Annual Withdrawal Benefit,” “Total Withdrawal Base,” and “Minimum Remaining Withdrawal Amount,” below.)

Withdrawals under the guaranteed minimum withdrawal benefit also:

• reduce your policy value;

• reduce your death benefit and other benefits;

• may be subject to any excess interest adjustment; and

• may be subject to income taxes and federal tax penalties (See “Section 9. Taxes”).

Maximum Annual Withdrawal Amount. Under this benefit:

• you can withdraw up to 7% of your “principal back” total withdrawal base each rider year until your “principal back” minimum remaining withdrawal amount reaches zero;

Example. Assume you make a single premium payment of $100,000 and that you do not make any withdrawals or additional premium payments. Assume that after five years, your policy value has declined to $70,000 solely because of negative investment performance. You could still receive up to $7,000 (7% of $100,000) each rider year for the next fourteen years and $2,000 in the year immediately thereafter so you would get back your full $100,000 (assuming that you do not withdraw more than $7,000 in any one rider year).

• or, you can withdraw up to 5% of your “for life” total withdrawal base each rider year starting with the rider anniversary immediately following the annuitant’s 59th birthday and lasting until the annuitant’s death, unless your “for life” minimum remaining withdrawal amount reaches zero because of “excess withdrawals” (see “Adjusted Partial Withdrawals,” below). A penalty tax may be assessed on amounts surrendered from the policy before the annuitant reaches age 59 ¹/2.

Example. Assume you are the owner and annuitant and you make a single premium payment of $100,000 when you are 55 years old. Assume you do not make any withdrawals or additional premium payments. Assume that after five years, your policy value has declined to $70,000 solely because of negative investment performance. You could still receive up to $5,000 (5% of $100,000) each rider year for the rest of your life (assuming that you do not withdraw more than $5,000 in any one rider year).

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You can receive up to the maximum annual withdrawal amount each rider year (first as withdrawals from your policy value and, if necessary, as payments from us) under this rider regardless of your policy value; however, once your policy value reaches zero you cannot make premium payments, and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to continue withdrawals under this rider after your policy value reaches zero, you must select an amount and frequency of future withdrawals. Once selected, the amount and frequency of future withdrawals after your policy value reaches zero cannot be changed.

Please note:

• Withdrawals under the 5% “for life” guarantee cannot begin until after the rider anniversary following the annuitant’s 59th birthday.

• Any withdrawal before the rider anniversary following the annuitant’s 59th birthday will reduce the benefits under the 5% “for life” guarantee.

• The maximum annual withdrawal amounts described above (the 7% “principal back” and 5% “for life”) are based on rider years, not calendar or policy years (if different from rider years).

• You cannot carry over any portion of your maximum annual withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if you do not take the maximum annual withdrawal amount during a rider year, you cannot take more than the maximum annual withdrawal amount in the next rider year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

• If you have a qualified policy, minimum required distribution rules may force you to take excess withdrawals to avoid the imposition of a 50% excise tax. Further, some qualified policies have withdrawal restrictions that may (with limited exceptions) prevent you from taking withdrawals before age 59 ¹/2. You should consult a tax advisor before purchasing this rider with a qualified policy.

Total Withdrawal Base. We use the total withdrawal base to calculate the maximum annual withdrawal amount. The total withdrawal base on the rider date is the policy value (less any premium enhancements if the rider is added in the first policy year). After the rider date, the total withdrawal base is equal to:

• the total withdrawal base on the rider date; plus

• subsequent premium payments; less

• subsequent adjusted partial withdrawals (as described below).

We will calculate separate total withdrawal bases for the “principal back” and “for life” guarantees.

Please note: We determine the total withdrawal base solely to calculate the maximum annual withdrawal amount. Your total withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

Minimum Remaining Withdrawal Amount. The minimum remaining withdrawal amount represents the total amount of guaranteed withdrawals still available under the rider. The minimum remaining withdrawal amount on the rider date is the policy value (less any premium enhancements if the rider is added in the first policy year). After the rider date, the minimum remaining withdrawal amount is equal to:

• the minimum remaining withdrawal amount on the rider date; plus

• subsequent premium payments; less

• subsequent adjusted partial withdrawals (as described below).

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We will calculate separate minimum remaining withdrawal amounts for the “principal back” and “for life” guarantees.

Adjusted Partial Withdrawals. Each rider year, for each withdrawal guarantee (i.e., “principal back” and “for life”), gross partial withdrawals (the amount that you request be withdrawn, plus any excess interest adjustment that may be applicable) up to the maximum annual withdrawal amount for that withdrawal guarantee, will reduce the minimum remaining withdrawal amount for that withdrawal guarantee on a dollar-for-dollar basis, but will not reduce the total withdrawal base for that withdrawal guarantee. For each withdrawal guarantee, gross partial withdrawals in excess of the maximum annual withdrawal amount for that withdrawal guarantee will reduce the total withdrawal base and minimum remaining withdrawal amount for that withdrawal guarantee by a pro rata amount (possibly to zero). See “Appendix - Living Benefits Rider Adjusted Partial Withdrawals,” which provides examples showing the effect of a withdrawal. Excess withdrawals may cause you to lose the withdrawal guarantees under this rider.

Please note: Gross partial withdrawals that are compliant with the “principal back” withdrawal guarantee (i.e., withdrawals of the “principal back” maximum annual withdrawal amount) and any partial withdrawal before the rider anniversary following the annuitant’s 59th birthday, will result in an excess partial withdrawal under the “for life” guarantee, and will reduce the “for life” maximum annual withdrawal amount, the “for life” total withdrawal base, and the “for life” minimum remaining withdrawal amount. Such reduction may be on a greater than dollar-for-dollar basis.

Rider Fee. A rider fee, 0.90% of the “principal back” total withdrawal base on each rider anniversary, is charged annually before annuitization. We will also deduct the rider fee upon full surrender of the policy or other termination of the rider. The rider fee is deducted from each investment choice in proportion to the amount of policy value in each investment choice. Generally, the rider fee is deducted regardless of your values (i.e., even if your policy value exceeds your total withdrawal base).

We will continue to calculate the rider fee using the “principal back” total withdrawal base even after the “principal back” minimum remaining withdrawal amount reaches zero. The “principal back” total withdrawal base is always greater than or equal to the “for life” total withdrawal base.

Please note: Because the rider fee is a percentage of your “principal back” total withdrawal base on each rider anniversary, the fee can be substantially more than 0.90% of your policy value if that total withdrawal base is higher than your policy value.

Portfolio Allocation Method

If you elect the Living Benefits Rider, the Portfolio Allocation Method (“PAM”) will automatically be in effect. PAM is designed to help manage portfolio risk and support the guarantees under the Living Benefits Rider. Using PAM, we will monitor your policy value and may transfer amounts back and forth between the PAM Transamerica AEGON U.S. Government Securities VP—Service Class subaccount (which invests in the Transamerica AEGON U.S. Government Securities VP—Service Class portfolio of the Transamerica Series Trust) or certain guaranteed period options of the fixed account (each a “PAM investment choice” and collectively, the “PAM investment choices”) and the variable investment choices you choose. You should read the underlying fund prospectus for the variable PAM investment choice(s) carefully before you elect the Living Benefits Rider. We will transfer amounts from your variable investment choices to the PAM investment choices to the extent we deem, at our sole discretion, necessary to support the guarantees under the rider. We will transfer amounts to the PAM investment choices proportionally from all your

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variable investment choices. Currently, PAM transfers are being made to the PAM Transamerica AEGON U.S. Government Securities VP—Service Class subaccount.

PAM is designed to help reduce portfolio risk associated with negative performance. Using PAM, we will transfer amounts from your variable investment choices to the PAM investment choices to the extent we deem, in our sole discretion, necessary to help manage portfolio risk and support the guarantees under the Living Benefits Rider. You should not view the Living Benefits Rider nor PAM as a “market timing” or other type of investment program designed to enhance your policy value. If you choose this rider, it may result in a lower policy value in certain situations. If policy value is transferred from your chosen variable investment choices to the PAM investment choices, less of your policy value may be available to participate in any future positive investment performance of your variable investment choices. This may potentially provide a lower policy value than if you did not select the Living Benefits Rider.

Under PAM, the mathematical model compares a number of interrelated factors including your policy value and the guarantees under the rider to be provided in the future. The mathematical model also uses assumptions for interest rates, the duration of the policy and stock market volatility. The following table sets forth the most influential of these factors and indicates how each one (assuming all other factors remain constant) could trigger a transfer into or out of the PAM subaccounts.

Factor	Direction of Transfer
Policy Value Increases	Transfer to the investment options
Policy Value Decreases	Transfer to the PAM subaccounts
Interest Rates Increase	Transfer to the investment options
Volatility Increases	Transfer to the PAM subaccounts

The amount of the transfer will vary depending on the magnitude and direction of the change in these factors. We may transfer some or all of your policy value to or from the PAM investment choices.

Transactions you make also affect the number of PAM transfers including:

• additional premium payments; and

• excess withdrawals.

These transactions will change the policy value relative to the guarantees under the rider and may result in additional PAM transfers.

You may not allocate premium payments to, nor transfer policy value into or out of, the PAM investment choices. PAM transfers are not subject to any transfer fee and do not count against the number of any free transfers we allow. Transfers out of a fixed account PAM investment choice are at our discretion and may be subject to an excess interest adjustment if the transfer occurs before the end of a guarantee period. Any transfer to your variable investment choices will be allocated into your variable investment choices in proportion to the amount of policy value in each variable investment choice.

Generally, transfers to the PAM investment choices first occur when the policy value drops by a cumulative amount of 3% to 5% over any period of time, although we may make transfers to the PAM investment choices when the policy value drops by a cumulative amount of less than 3% in relation to the guarantees. If the policy value continues to fall, more transfers to the PAM investment choices will occur. When a transfer occurs, the transferred policy value is allocated to the PAM investment choice(s) we deem appropriate. The policy value allocated to the PAM investment choices will remain there unless the performance of your chosen investment choices recovers sufficiently to enable us to transfer amounts back to your investment choices while maintaining the guarantees under the Living Benefits Rider. This

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generally occurs when the policy value increases by 5% to 10% in relation to the guarantees, although we may require a larger increase before transferring amounts back to your investment options.

The Daily Rebalancing Formula Under the Mathematical Model: As noted above, to limit our exposure under the rider, we transfer policy value from your investment options to the PAM subaccounts, to the extent called for by a mathematical model that will not change once you purchase the policy. We do this in order to minimize the need to provide payments (for example, when your policy value goes to zero by other than an excess withdrawal), or to extend the time before any payment is required. When payments become more likely (because your policy value is approaching zero), the mathematical model will tend to allocate more policy value to the PAM subaccounts. If, on the other hand, the policy value is much higher than the guarantees under the rider, then payments may not be necessary, and therefore, the mathematical model will tend to allocate more policy value to the investment options.

Each business day the mathematical model computes a “target allocation,” which is the portion of the policy value that is to be allocated to the investment options.

The target allocation depends on several factors, including the policy value as compared to the guarantees under the rider, the time until payments are likely required, and interest rates. However, as time passes, these factors change. Therefore, the target allocation changes from one business day to the next.

See “Appendix—PAM Method Transfers” in the SAI for more detail regarding the workings of the mathematical model, including the formula used to compute the allocation on a daily basis.

Upgrades

Prior to the annuitant’s 86th birthday and after the third rider anniversary, you can upgrade the total withdrawal base and guaranteed future value to the policy value by sending us written notice. The minimum remaining withdrawal amounts will also be upgraded to the policy value and the maximum annual withdrawal amounts will be recalculated.

If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date, guaranteed future value date, and its own rider fee percentage (which may be higher than your current rider fee percentage). The “principal back” and “for life” withdrawal percentages will not change. The new rider date will be the date the Company receives all necessary information.

Annuitization

If you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments equal to your 5% “for life” maximum annual withdrawal amount.

Termination

The Living Benefits Rider will terminate upon the earliest of the following:

• the date we receive written notice from you in good order requesting termination of the Living Benefits Rider (you may not terminate the rider before the third rider anniversary);

• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your 5% “for life” maximum annual withdrawal amount);

• the date the policy to which this rider is attached is assigned or the owner is changed without our approval;

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• the date an excess withdrawal reduces your policy value to zero; or

• termination of your policy.

Please note: This feature terminates upon annuitization and there is a maximum annuity commencement date.

The Living Benefits Rider may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Living Benefits Rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Retirement Income Choice^® 1.2 Rider

You may elect to purchase the optional Retirement Income Choice^® 1.2 Rider which, provides you with: (1) a guaranteed lifetime withdrawal benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that you allocate 100% of your policy value according to either the designated allocation option or open allocation option both of which are designed to help manage the Company’s risk and support the guarantees under the rider. The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Retirement Income Choice^® 1.2 rider for a qualified policy.

Retirement Income Choice^® 1.2 – Base Benefit

Under this benefit, you can receive up to the rider withdrawal amount each rider year (first as withdrawals from your policy value and, if necessary, as payments from us), starting with the rider year immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday and lasting until the annuitant’s death (unless your withdrawal base is reduced to zero because of an “excess withdrawal”; see Withdrawal Base Adjustments and Rider Death Benefit Adjustments, below). A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date.

Example. Assume you are the owner and annuitant and you make a single premium payment of $100,000 when you are 66 years old. Further assume that you do not make any withdrawals or additional premium payments, no automatic step-ups occurred, but that after five years your policy value has declined to $90,000 solely because of negative investment performance. With an annual growth rate percentage of 5.0%, after 5 years the withdrawal base is equal to $127,628 ($100,000 x 1.05⁵). You could receive up to $6,381 which is the applicable withdrawal percentage of 5.0% for the single life option multiplied by the withdrawal base of $127,628, each rider year for the rest of your life (assuming that you take your first withdrawal when you are age 71, that you do not withdraw more than the rider withdrawal amount in any one year and there are no future automatic step-ups.)

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion.

Example continued. Assume the same facts as above, but you withdraw $10,000 when you are 71 years old. That excess withdrawal decreases your future rider withdrawal amount to $6,105.

See the “Appendix—Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders -Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider” for examples showing the effect of hypothetical withdrawals in more detail.

Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid

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under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider to allow for withdrawals from your policy value each rider year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the rider withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• The longer you wait to start making withdrawals under the benefit, the less time you have to benefit from the guarantee because of decreasing life expectancy as you age. On the other hand, the longer you wait to begin making withdrawals, the higher your withdrawal percentage may be, the higher the withdrawal base due to growth may be, and the more opportunities you will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that you will not begin making withdrawals at the most financially beneficial time for you.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All policy value must be allocated according to the Designated Allocation option or the Open Allocation option. You should consult with your registered representative to assist you in determining whether the investment restrictions attributable to each option are suited for your financial needs and risk tolerance.

• Cumulative withdrawals in any rider year that are in excess of the rider withdrawal amount are excess withdrawals.

• An excess withdrawal may impact the withdrawal base, and rider death benefit (if applicable) on a greater than dollar-for-dollar basis.

• Any withdrawal will reduce your rider death benefit (if applicable).

• Upon the death of the annuitant (or the death of the surviving spouse if the joint option is elected), the Retirement Income Choice^® 1.2 rider terminates and all benefits thereunder cease.

Like all withdrawals, withdrawals while this rider is in effect also:

• reduce your policy value;

• reduce your base policy death benefit and other benefits;

• may be subject to excess interest adjustment;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Withdrawal Amount. You can withdraw up to the rider withdrawal amount in any rider year (after age 59) from your policy value without causing an excess withdrawal. See “Withdrawal Base Adjustments” and “Rider Death Benefit Adjustments” below.

The rider withdrawal amount is zero if the annuitant is not 59 years old on the rider date and remains zero until the first day of the rider year after the annuitant’s 59th birthday. If the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is at least 59 years old on the rider date, then the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage (see below).

For qualified policies: If the plan participant (generally the annuitant) is at least 70 ¹/2 years old, the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

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• the rider withdrawal amount described above; or

• an amount equal to any minimum required distribution amount (for the tax year on that rider anniversary) calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (prior to the first rider anniversary we use the policy value on the rider date and thereafter we use the policy value on the date prescribed by the IRS) and (4) amounts from the current calendar year (no carry-over from past years).

Only amounts calculated as set forth above can be used as the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

If your policy value reaches zero, then you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits guaranteed by this rider after your policy value reaches zero, you must select the amount and frequency of future payments. Once selected, the amount and frequency cannot be changed.

Please note:

• If the rider is added prior to the annuitant’s 59th birthday, the rider withdrawal amount will be zero until the beginning of the rider year after the annuitant’s 59th birthday, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if you do not take the entire rider withdrawal amount during a rider year, you cannot take more than the rider withdrawal amount in the next rider year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

• All policy value must be allocated according to either the Designated Allocation option or the Open Allocation option. (See “Allocation Options and Restrictions.”)

Withdrawal Percentage. We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) 59th birthday. The withdrawal percentage is as follows:

Age at time of first withdrawal	Withdrawal Percentage — Single Life Option			Withdrawal Percentage  — Joint Life Option
0-58		0.0	%		0.0	%
59-64		4.0	%		3.5	%
65-74		5.0	%		4.5	%
³75		6.0	%		5.5	%

Please note, once established, the withdrawal percentage will not generally increase even though the annuitant’s age increases except in certain instances involving automatic step-ups.

Withdrawal Base. We use the withdrawal base to calculate the rider withdrawal amount. The withdrawal base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to excess withdrawals.

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Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• Because the withdrawal base is generally equal to the policy value on the rider date, the rider withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

On each rider anniversary, the withdrawal base will equal the greatest of:

• Current withdrawal base;

• The withdrawal base immediately before the rider anniversary, increased by the growth credit, if any (see “Growth” below);

• The policy value on any monthiversary^SM , including the current rider anniversary (see “Automatic Step-Up” below).

Growth. On each of the first ten rider anniversaries, we will add an annual growth credit to your withdrawal base if no withdrawal occurred during the preceding rider year. The annual growth credit is equal to 5.0% of the withdrawal base immediately before the rider anniversary (i.e., withdrawal base x 0.05) .

Please note: Because a withdrawal will eliminate a potential growth credit for that rider year, you should consider your need or possible need to take withdrawals within the first 10 rider years in deciding whether to purchase the rider.

Automatic Step-Up. On each rider anniversary, we will automatically step-up the withdrawal base to an amount equal to the greater of (1) the highest policy value on any monthiversary^SM during the preceding rider year, if no excess withdrawal occurred, or (2) the policy value on the rider anniversary. This comparison takes place after the application of any applicable annual growth credit. The withdrawal percentage (as indicated in the withdrawal percentage table) will also increase if you have crossed into another age band prior to the automatic step-up.

Beginning on the fifth rider anniversary, the rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum rider fee percentage in the fee table.

Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, you have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentage, and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that you do so within 30 days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection (each time you elect to opt out), in good order, at our Administrative and Service Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Withdrawal Base Adjustments. Cumulative gross partial withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Cumulative gross partial withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal (if the policy value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the policy value when the policy value is less than the withdrawal base), possibly to zero. Withdrawal base adjustments occur immediately following excess withdrawals. See “Appendix – Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders -Retirement Income Choice^® 1.2 Rider and

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Retirement Income Choice^® 1.4 Rider” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base by a pro rata amount. The effect of an excess withdrawal is amplified if the policy value is less than the withdrawal base.

Please Note: We do not monitor for, or notify you of, excess withdrawals. If you take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because your otherwise regular or scheduled non-excess withdrawals may thereafter all be excess withdrawals that reduce or eliminate your benefit on an accelerated basis.

Allocation Options and Restrictions. If you elect this rider, you must allocate 100% of your policy value according to either the Designated Allocation option or the Open Allocation option. Transfers will be permitted between the Designated Allocation option and the Open Allocation option at any time.

Designated Allocation Option. Under the Designated Allocation option, you must designate 100% of your policy value into one or more of the designated investment options in the following designated allocation groups:

Designated Allocation Group A

AllianceBernstein Balanced Wealth Strategy Portfolio - Class B

American Funds - Asset Allocation Fund - Class 2

Fidelity VIP Balanced Portfolio – Service Class 2

Franklin Templeton VIP Founding Funds Allocation Fund - Class 4

Transamerica AEGON Active Asset Allocation -Moderate Growth VP – Service Class

Transamerica Asset Allocation - Moderate Growth VP – Service Class

Transamerica International Moderate Growth VP –Service Class

Transamerica Multi-Managed Balanced VP – Service Class

Transamerica Efficient Markets VP – Service Class

Transamerica Index 75 VP – Service Class

GE Investments Total Return Fund – Class 3

Designated Allocation Group B

Transamerica AEGON Active Asset Allocation -Moderate VP – Service Class

Transamerica Asset Allocation - Moderate VP –Service Class

Transamerica BlackRock Global Allocation VP -Service Class

Transamerica BlackRock Tactical Allocation VP -Service Class

Transamerica Index 50 VP – Service Class

Designated Allocation Group C

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

Transamerica AEGON Active Asset Allocation -Conservative VP – Service Class

Transamerica AEGON Money Market VP – Service Class

Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica Asset Allocation - Conservative VP –Service Class

Transamerica JPMorgan Core Bond VP – Service Class

Transamerica JPMorgan Tactical Allocation VP -Service Class

Transamerica PIMCO Total Return VP – Service Class

Transamerica PIMCO Real Return TIPS VP -Service Class

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica Index 35 VP – Service Class

American Funds - Bond Fund - Class 2

Fixed Account

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Transfers between the designated investment options in the Designated Allocation option are allowed as permitted under the policy; however, transfers as provided for in the policy from a designated investment option to a non-designated investment option are not permitted unless you change your allocation option to the Open Allocation option.

Open Allocation Option. Under the Open Allocation option, you may allocate to any investment options available under the policy.

If you elect the Open Allocation option, the OA Method will automatically be in effect. The OA Method uses a mathematical model which is designed to help the Company manage portfolio risk and support the guarantees under the rider. Under the OA Method, the mathematical model monitors your policy value and guarantees under the rider and transfers amounts back and forth between the OA Transamerica ProFund UltraBear VP subaccount or certain other subaccounts we choose (each an “OA subaccount” and collectively, the “OA subaccounts”) and the variable investment options you choose to the extent necessary to support the benefit guarantees. You will still have complete discretion over the selection of, and allocation to, the variable investment options for any portion of your policy value that the OA Method does not allocate to the OA subaccounts. You should read the underlying fund prospectus for the variable OA subaccounts carefully before you elect the Open Allocation option.

Transfers to the OA subaccounts according to the mathematical model will be proportionally from all your variable investment options. This mathematical model will not change once you purchase the rider, but we may use a different model for riders issued in the future.

The OA Method is designed to help manage the Company’s portfolio risk associated with negative performance and support the guarantees under the rider. You should not view the rider nor the OA Method as a “market timing” or other type of investment program designed to enhance your policy value. If you choose the Open Allocation option, it may result in a lower policy value in certain situations. If policy value is transferred from your chosen variable investment options to the OA subaccounts, less of your policy value may be available to participate in any future positive investment performance of your variable investment options. This may potentially provide a lower policy value than if you did not select the Open Allocation option.

Under the OA Method, the mathematical model compares a number of interrelated factors including your policy value and the guarantees under the rider to be provided in the future. The mathematical model also uses assumptions for interest rates, the duration of the policy and stock market volatility. The following table sets forth the most influential of these factors and indicates how each one (assuming all other factors remain constant) could trigger a transfer into or out of the OA subaccounts.

Factor	Direction of Transfer
Policy Value Increases	Transfer to the investment options
Policy Value Decreases	Transfer to the OA subaccounts
Interest Rates Increase	Transfer to the investment options
Volatility Increases	Transfer to the OA subaccounts

The amount of the transfer will vary depending on the magnitude and direction of the change in these factors.

Transactions you make also affect the number of OA transfers including:

• additional premium payments; and

• excess withdrawals.

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These transactions will change the policy value relative to the guarantees under the rider and may result in additional OA transfers.

You may not allocate premium payments to, nor transfer policy value into or out of, the OA subaccounts. OA Method transfers are not subject to any transfer fee and do not count against the number of any free transfers we allow. Any transfer to your variable investment options will be allocated into your variable investment options in proportion to the amount of policy value in each variable investment option.

Generally, transfers to the OA subaccounts first occur when the policy value drops by a cumulative amount of 2% to 5% over any period of time in relation to the guarantees, although the mathematical model may make transfers to the OA subaccounts when the policy value drops by a cumulative amount of less than 3%. The mathematical model will not transfer more than 20% of the policy value to the OA subaccounts. If the policy value continues to fall, no more transfers to the OA subaccounts will occur. However, up to 30% of the policy value could be in the OA subaccounts due to negative performance of the investment options. If negative investment performance causes the percentage of the policy value in the OA subaccounts to exceed 30% then the mathematical model will transfer the excess policy value back into your investment options. The policy value allocated to the OA subaccounts will remain there unless your policy value recovers sufficiently to enable us to transfer amounts back to your investment options while maintaining the guarantees under the rider. This generally occurs when the policy value increases by 2.5% to 10% in relation to the guarantees under the rider, although the mathematical model may require a larger increase before transferring amounts back to your investment options.

The Daily Rebalancing Formula Under the Mathematical Model: As noted above, to limit our exposure under the rider, we transfer policy value from your investment options to the OA subaccounts, to the extent called for by a mathematical model that will not change once you purchase the policy. We do this in order to minimize the need to provide payments (for example, when your policy value goes to zero by other than an excess withdrawal), or to extend the time before any payment is required. When payments become more likely (because your policy value is approaching zero), the mathematical model will tend to allocate more policy value to the OA subaccounts. If, on the other hand, the policy value is much higher than the guarantees under the rider, then payments may not be necessary, and therefore, the mathematical model will tend to allocate more policy value to the investment options.

Each business day the mathematical model computes a “target allocation,” which is the portion of the policy value that is to be allocated to the investment options.

The target allocation depends on several factors, including the policy value as compared to the guarantees under the rider, the time until payments are likely required, and interest rates. However, as time passes, these factors change. Therefore, the target allocation changes from one business day to the next.

See “Appendix—OA Method Transfers” in the SAI for more detail regarding the workings of the mathematical model, including the formula used to compute the allocation on a daily basis.

Please Note: The OA Transamerica ProFunds UltraBear VP subaccount invests in the Transamerica ProFunds UltraBear VP portfolio which is designed to seek daily investment results, before fees and expenses that correspond to twice (200%) the inverse (opposite) of the daily performance of the S&P 500

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Index. Please read the prospectus for the Transamerica ProFunds UltraBear VP portfolio to understand how its investment objective may affect your policy value if OA Method transfers occur to the OA Transamerica ProFunds UltraBear VP subaccount.

You cannot allocate premium payments or transfers to the OA subaccounts.

Please note:

• If you no longer want to be subject to an allocation option, you will be required to terminate the rider. If you terminate the rider you will lose all of its benefits.

• We can change a designated allocation group or eliminate a designated investment option at any time. If this occurs, then a policy owner will be required to reallocate values in the affected designated investment options to other designated investment options that meet the allocation requirements.

Manual Upgrades. You can upgrade the withdrawal base to the policy value during the 30-day period following each successive fifth rider anniversary by sending us written notice in a form acceptable to us, as long as the rider issue requirements for a new rider are met. At this time the rider withdrawal amount and, if applicable, the rider death benefit will be recalculated. If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date, its own rider fee percentage (which may be higher or lower than your current rider fee percentage) and its own terms and benefits (which may not be as advantageous as the current rider); and any options you elect to change or add. The new rider date will be the date the Company receives all necessary information in good order. You cannot elect a manual upgrade if the annuitant (or the annuitant’s spouse if younger and the joint option is elected) is 86 or older.

Retirement Income Choice^® 1.2 – Additional Options

You may elect the following options with this rider (the options are not mutually exclusive):

• Death Benefit;

• Joint Life; and

• Income Enhancement.

There is an additional fee if you elect the Death Benefit and/or the Income Enhancement Benefit option(s) under the rider. If you elect the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) is lower. Furthermore, if you elect the Joint Life option in combination with the Death Benefit and/or the Income Enhancement Benefit option(s), then the fee for each of those additional options will be different than under the Single Life option. See “Retirement Income Choice^® 1.2 Rider and Additional Option Fees”.

1. Death Benefit. If you elect this rider, you can also elect to add an additional amount to the death benefit payable under the base policy, upon the death of the annuitant (or if the joint life option is selected, the annuitant’s spouse). The additional amount will be equal to the excess, if any, of the rider death benefit over the greater of any optional guaranteed minimum death benefit or the base policy death benefit. The additional amount can be zero. See “Section 8. Death Benefit.”

Rider Death Benefit. The rider death benefit on the rider date is the policy value (less any premium enhancement if the rider is added in the first policy year). After the rider date, the rider death benefit is equal to:

• the rider death benefit on the rider date; plus

• subsequent premium payments; less

• adjustments for withdrawals (as described under “Rider Death Benefit Adjustments,” below).

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Rider Death Benefit Adjustments. Gross partial withdrawals up to the rider withdrawal amount in a rider year will reduce the rider death benefit on a dollar-for-dollar basis. Gross partial withdrawals in excess of the rider withdrawal amount in a rider year will reduce the rider death benefit by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in policy value), and possibly to zero. See “Appendix - Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders - Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider “ for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that results in pro rata adjustments. Rider death benefit adjustments occur immediately following all withdrawals.

Please note:

• No additional death benefit is payable if the base policy death benefit (including the guaranteed minimum death benefit) exceeds the rider death benefit. The greater the death benefit payable under the guaranteed minimum death benefit selected, the more likely it is that an additional amount will not be payable under the rider death benefit option.

• Excess withdrawals may eliminate the additional death benefit available with this rider. You will continue to pay the fee for this option, even if the additional death benefit available under the rider is $0.

• Manual upgrades to the withdrawal base will result in a recalculation of the rider death benefit. However, automatic step-ups will not reset the rider death benefit.

• If an owner who is not the annuitant dies and the surviving spouse continues the policy, then no additional amount is payable. If the policy is not continued, then the surviving owner (who is also the sole beneficiary) may elect to receive lifetime annuity payments equal to the rider withdrawal amount divided by the number of payments each year instead of receiving the policy’s cash value. Please note that under federal tax law, upon the death of an owner, only a “spouse,” as defined under the Federal Defense of Marriage Act is permitted to continue a policy without taking required distributions. (The payment of a death benefit under the policy is triggered by the death of the annuitant.)

The additional death benefit payment option may be referred to as “minimum remaining withdrawal amount” on your policy statement and other documents.

2. Joint Life Benefit. If you elect this rider, then you can also elect to postpone termination of the rider until the later of the annuitant or annuitant’s spouse’s death (only if the annuitant’s spouse continues the policy).

Please note:

• The withdrawal percentage for each “age at the time of first withdrawal” is lower if you elect this option.

• The annuitant’s spouse must be either a joint owner along with the annuitant or the sole primary beneficiary (and there is no joint owner), if you elect this option.

• A former spouse of the annuitant cannot continue to keep the policy in force if no longer married to the annuitant at the time of the annuitant’s death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.

• The annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.

• The rider withdrawal percentage is based on the age of the younger of the annuitant and annuitant’s spouse, if you elect this option.

• The rider death benefit is not payable until the death of the surviving spouse, if you elect this option.

• You cannot elect a manual upgrade if the annuitant or annuitant’s spouse is 86 or older (lower if required by state law).

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3. Income Enhancement Option. If you elect this rider, you can also elect to have your withdrawal percentage double if either the annuitant (or the annuitant’s spouse if the joint life option is elected) is confined, due to a medical necessity in a hospital or nursing facility due to physical or cognitive ailments. Benefits from this option are not available unless the rider has been in effect for 12 months (the “waiting period”) and confinement must meet the elimination period of 180 days within the last 365 days. The elimination period and waiting period can, but do not need to, run concurrently.

Please note:

• You cannot elect the Income Enhancement Option if the qualifying person or persons is/are already admitted to a hospital or already reside in a nursing facility.

• Confinement must be prescribed by a physician based on the individual’s inability to sustain themselves outside of a hospital or nursing facility due to physical or cognitive ailments.

• The increase to the withdrawal percentage stops when the qualifying person or persons is/are no longer confined as described above.

• The hospital and/or nursing facility must meet the criteria listed below to qualify for the benefit.

• You cannot elect the Income Enhancement Option if you are confined in an assisted living facility or a residential care facility.

A Qualifying Hospital must meet the following criteria:

• It is operated pursuant to the laws of the jurisdiction in which it is located;

• It is operated primarily for the care and treatment of sick and injured persons on an inpatient basis;

• It provides 24-hour nursing service by or under the supervision of registered graduate professional nurses;

• It is supervised by a staff of one or more licensed physicians; and

• It has medical, surgical and diagnostic facilities or access to such facilities.

A Qualifying Nursing Facility must meet the following criteria:

• It is operated pursuant to the laws and regulations of the state in which it is located as a nursing facility or Alzheimer’s disease facility;

• It provides care performed or supervised by a registered graduate nurse;

• It provides room and board accommodations; and

• Will provide 24-hour nursing services, 7 days a week by an on-site Registered Nurse and related services on a continuing inpatient basis.

• It has a planned program of policies and procedures developed with the advice of, and periodically reviewed by, at least one physician; and

• It maintains a clinical record of each patient.

A Qualifying Nursing Facility does not include:

• Assisted living facilities or residential care facilities;

• A place primarily for treatment of mental or nervous disorders, drug addiction or alcoholism;

• A home for the aged, a rest home, community living center or a place that provides domestic, resident, retirement or educational care;

• Personal care homes, personal care boarding homes, residential or domiciliary care homes;

• A rehabilitation hospital or basic care facilities;

• Adult foster care facilities, congregate care facilities, family and group living assisted living facilities; or

• Other facilities similar to those described above.

We will require confirmation of confinement in a qualifying hospital or a qualifying nursing facility while benefit payouts are being received. Confirmation of that confinement will be attained and approved by completing our “Income Enhancement Election and Proof of Confinement Questionnaire” form. This form requires additional

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proof of confinement which may be a physician’s statement, a statement from a hospital or nursing facility administrator, or any other information satisfactory to us which may include information from third party or company interviews and/or visits of the facility. If it is determined that the qualifying individual was not confined in an eligible facility as defined above and has received payments under the Income Enhancement Option, those payments could be considered an excess withdrawal and have a negative effect on the rider values. If confinement ceases, you may re-qualify by satisfying another 180-day elimination period requirement.

Retirement Income Choice^® 1.2 Fees

Retirement Income Choice^® 1.2 Base Rider Fee. The base rider fee is calculated on the rider date and at the beginning of each rider quarter. The base rider fee will be adjusted for any premium additions, excess withdrawals, transfers between designated investment groups, or changes to other allocation options during the rider quarter. It will be deducted automatically from your policy value at the end of each rider quarter.

On an annual basis, in general terms, the base rider fee is the applicable “rider fee percentage” (see the Fee Table) times the withdrawal base.

The Open Allocation option base quarterly fee is calculated by multiplying (A) by (B) by (C), where:

(A) is the withdrawal base;

(B) is the rider fee percentage; and

(C) is the number of remaining days in the rider quarter divided by the total number of days in the applicable rider year.

The Designated Allocation option base quarterly fee is calculated by multiplying (A) by (B) divided by (C) multiplied by (D), where:

(A) is the withdrawal base;

(B) is the sum of each designated investment group’s rider fee percentage multiplied by the applicable designated investment group’s value;

(C) is the total policy value; and

(D) is the number of remaining days in the rider quarter divided by the total number of days in the applicable rider year.

We will assess a prorated rider fee upon termination of the rider for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

Beginning on the fifth rider anniversary, the rider fee percentage may increase (or decrease) at the time of an automatic step-up. Each time an automatic step-up will result in a rider fee percentage increase, you will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that you do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection, in good order, at our Administrative and Service Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Please note regarding the base rider fee:

• Because the base rider fee is a percentage of the withdrawal base, it could be a much higher percentage of your policy value, particularly in the event that your policy value decreases significantly.

• Because the base rider fee is a percentage of the withdrawal base, the amount of the base rider fee we deduct will increase if the withdrawal base increases (although the percentage(s) may remain the same).

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• If you make a transfer from one designated allocation group to another designated allocation group that has a higher rider fee percentage, then the resulting rider fee will be higher.

Base Rider Fee Adjustment for Transfers. For transfers that you make between different designated investment options in different designated allocation groups or different allocation options on other than the first business day of a rider quarter, a “rider fee adjustment” will be applied. This adjustment is necessary because of differences in the rider fee percentages. The adjustment in the rider fee percentage will ensure that you are charged the correct overall rider fee. The base rider fee adjustment will be calculated using the same formula as the base rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be allocated.

Base Rider Fee Adjustment for Premium Payments and Excess Withdrawals. A rider fee adjustment will also be calculated for subsequent premium payments and excess withdrawals because these events will change the withdrawal base. The rider fee adjustment will be calculated using the same formula as the base rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. As with the rider fee adjustments calculated for transfers, the rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

Additional Option Fees. If you elect options with this rider, then you will be charged a fee for each option you elect that is in addition to the rider fee for the base benefit (see the Fee Table). Each additional fee is charged quarterly before annuitization and is a percentage of the withdrawal base on each rider anniversary.

We will also deduct all rider fees pro rata upon full surrender of the policy or other termination of the rider.

Retirement Income Choice^® 1.2 Rider Issue Requirements

The Company will not issue the Retirement Income Choice^® 1.2 rider unless:

• the annuitant is not yet age 86 (lower if required by state law);

• the annuitant is also an owner (except in the case of non-natural owners);

• there are no more than two owners; and

• if the joint life option is elected, the annuitant’s spouse is also not yet 86 (lower if required by state law) and (1) is a joint owner along with the annuitant or (2) is the sole primary beneficiary (and there is no joint owner).

Termination

The Retirement Income Choice^® 1.2 rider and any additional options will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;

• the death of the annuitant (or if the joint life option was elected, the death of the annuitant’s spouse if that spouse continued the policy as the surviving spouse);

• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your rider withdrawal amount);

• the date the policy to which this rider is attached is assigned or if the owner is changed without our approval;

• the date an excess withdrawal reduces your policy value to zero; or

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• termination of your policy.

Please note: This rider terminates upon annuitization and there is a maximum annuity commencement date at which time your policy will be annuitized according to its terms. However, if you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments which are at least equal to your rider withdrawal amount. Please contact us for more information concerning your options.

The Retirement Income Choice^® 1.2 rider and additional options may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Retirement Income Choice^® 1.2 rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Retirement Income Choice^® 1.4 Rider – This Rider is No Longer Available for New Sales

You may elect to purchase the optional Retirement Income Choice^® 1.4 rider which, provides you with: (1) a guaranteed lifetime withdrawal benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that you allocate 100% of your policy value in certain designated investment choices which are designed to help manage the Company’s risk and support the guarantees under the rider. The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Retirement Income Choice^® 1.4 rider for a qualified policy.

Retirement Income Choice^® 1.4 – Base Benefit

Under this benefit, you can receive up to the rider withdrawal amount each rider year (first as withdrawals from your policy value and, if necessary, as payments from us), starting with the rider year immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday and lasting until the annuitant’s death (unless your withdrawal base is reduced to zero because of an “excess withdrawal”; see Withdrawal Base Adjustments and Rider Death Benefit Adjustments, below). A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date.

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion.

See the “Appendix—Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders -Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider” for examples showing the effect of hypothetical withdrawals in more detail.

Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider to allow for withdrawals from your policy value each rider year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the rider withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• The longer you wait to start making withdrawals under the benefit, the less time you have to benefit from the guarantee because of decreasing life expectancy as you age. On the other hand, the longer you wait to begin making

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withdrawals, the higher your withdrawal percentage may be, the higher the withdrawal base due to growth may be, and the more opportunities you will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that you will not begin making withdrawals at the most financially beneficial time for you.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All policy value must be allocated to a limited number of specified funds. You should consult with your registered representative to assist you in determining whether these certain investment options are suited for your financial needs and risk tolerance.

• Cumulative withdrawals in any rider year that are in excess of the rider withdrawal amount are excess withdrawals.

• An excess withdrawal may impact the withdrawal base, and rider death benefit (if applicable) on a greater than dollar-for-dollar basis.

• Any withdrawal will reduce your rider death benefit (if applicable).

• Upon the death of the annuitant (or the death of the surviving spouse if the joint option is elected), the Retirement Income Choice^® 1.4 rider terminates and all benefits thereunder cease.

Like all withdrawals, withdrawals while this rider is in effect also:

• reduce your policy value;

• reduce your base policy death benefit and other benefits;

• may be subject to excess interest adjustment;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Withdrawal Amount. You can withdraw up to the rider withdrawal amount in any rider year (after age 59) from your policy value without causing an excess withdrawal. See “Withdrawal Base Adjustments” and “Rider Death Benefit Adjustments” below.

The rider withdrawal amount is zero if the annuitant is not 59 years old on the rider date and remains zero until the first day of the rider year after the annuitant’s 59th birthday. If the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is at least 59 years old on the rider date, then the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage (see below).

For qualified policies: If the plan participant (generally the annuitant) is at least 70 ¹/2 years old, the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

• the rider withdrawal amount described above; or

• an amount equal to any minimum required distribution amount (for the tax year on that rider anniversary) calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (prior to the first rider anniversary we use the policy value on the rider date and therafter we use the policy value on the date prescribed by the IRS) and (4) amounts from the current calendar year (no carry-over from past years).

Only amounts calculated as set forth above can be used as the rider withdrawal amount. If the minimum required distribution amount (determined

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as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

If your policy value reaches zero, then you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits guaranteed by this rider after your policy value reaches zero, you must select the amount and frequency of future payments. Once selected, the amount and frequency cannot be changed.

Please note:

• If the rider is added prior to the annuitant’s 59th birthday, the rider withdrawal amount will be zero until the beginning of the rider year after the annuitant’s 59th birthday, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if you do not take the entire rider withdrawal amount during a rider year, you cannot take more than the rider withdrawal amount in the next rider year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

• All policy value must be allocated to a limited number of specified funds. (See “Designated Investment Options.”)

Withdrawal Percentage. We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday. The withdrawal percentage is as follows:

Age at time of first withdrawal	Withdrawal Percentage— Single Life Option			Withdrawal Percentage— Joint Life Option
0-58		0.0	%		0.0	%
59-64		4.0	%		3.5	%
65-74		5.0	%		4.5	%
³ 75		6.0	%		5.5	%

Please note, once established, the withdrawal percentage will not generally increase even though the annuitant’s age increases except in certain instances involving automatic step-ups.

Withdrawal Base. We use the withdrawal base to calculate the rider withdrawal amount. The withdrawal base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to excess withdrawals.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• Because the withdrawal base is generally equal to the policy value on the rider date, the rider withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

On each rider anniversary, the withdrawal base will equal the greatest of:

• Current withdrawal base;

• The withdrawal base immediately before the rider anniversary, increased by the growth credit, if any (see “Growth” below);

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• The policy value on any monthiversary, including the current rider anniversary (see “Automatic Step-Up” below).

Growth. On each of the first ten rider anniversaries, we will add an annual growth credit to your withdrawal base if no withdrawal occurred during the preceding rider year. The annual growth credit is equal to 5.0% of the withdrawal base immediately before the rider anniversary (i.e., withdrawal base x 0.05) .

Please note: Because a withdrawal will eliminate a potential growth credit for that rider year, you should consider your need or possible need to take withdrawals within the first 10 rider years in deciding whether to purchase the rider.

Automatic Step-Up. On each rider anniversary, we will automatically step-up the withdrawal base to an amount equal to the greater of (1) the highest policy value on any monthiversary during the preceding rider year, if no excess withdrawal occurred, or (2) the policy value on the rider anniversary. This comparison takes place after the application of any applicable annual growth credit. The withdrawal percentage (as indicated in the withdrawal percentage table) will also increase if you have crossed into another age band prior to the automatic step-up.

Beginning on the fifth rider anniversary, the rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum rider fee percentage in the fee table.

Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, you have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentage, and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that you do so within 30 days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection (each time you elect to opt out), in good order, at our Administrative and Service Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Withdrawal Base Adjustments. Cumulative gross partial withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Cumulative gross partial withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal (if the policy value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the policy value when the policy value is less than the withdrawal base), possibly to zero. Withdrawal base adjustments occur immediately following excess withdrawals. See “Appendix - Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders -Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base by a pro rata amount. The effect of an excess withdrawal is amplified if the policy value is less than the withdrawal base. See the “Appendix - Guaranteed Lifetime Benefit Adjustment Partial Surrenders - Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider” for examples showing the effect hypothetical excess withdrawals in more detail.

Please Note: We do not monitor for, or notify you of, excess withdrawals. If you take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because your otherwise regular or scheduled non-excess withdrawals may thereafter all be excess withdrawals that reduce or eliminate your benefit on an accelerated basis.

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Designated Investment Options.

If you elect this rider, you must designate 100% of your policy value into one or more of the designated investment options in the following designated allocation groups:

Designated Allocation Group A

AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

American Funds - Asset Allocation Fund – Class 2

Fidelity VIP Balanced Portfolio – Service Class 2

Franklin Templeton VIP Founding Funds Allocation Fund – Class 4

Transamerica AEGON Active Asset Allocation -Moderate Growth VP – Service Class

Transamerica Asset Allocation - Moderate Growth VP – Service Class

Transamerica International Moderate Growth VP – Service Class

Transamerica Multi-Managed Balanced VP – Service Class

Transamerica Efficient Markets VP – Service Class

Transamerica Index 75 VP – Service Class

GE Investments Total Return Fund – Class 3

Designated Allocation Group B

Transamerica AEGON Active Asset Allocation -Moderate VP – Service Class

Transamerica Asset Allocation - Moderate VP – Service Class

Transamerica BlackRock Global Allocation VP – Service Class

Transamerica BlackRock Tactical Allocation VP – Service Class

Transamerica Index 50 VP – Service Class

Designated Allocation Group C

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

Transamerica AEGON Active Asset Allocation - Conservative VP – Service Class

Transamerica AEGON Money Market VP – Service Class

Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica Asset Allocation - Conservative VP – Service Class

Transamerica JPMorgan Core Bond VP – Service Class

Transamerica JPMorgan Tactical Allocation VP – Service Class

Transamerica PIMCO Total Return VP – Service Class

Transamerica PIMCO Real Return TIPS VP – Service Class

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica Index 35 VP – Service Class American Funds - Bond Fund – Class 2

Fixed Account

Transfers between the designated investment options are allowed as permitted under the policy; however, you cannot transfer any amount (or allocate premium payments) to any non-designated investment option. Within 30 days following the fifth rider anniversary (and each successive fifth rider anniversary), you can terminate this rider. Starting the next business day, you may transfer (or allocate premium payments) to a non-designated investment option. Terminating the rider will result in losing all your benefits under the rider.

Please note:

• The earliest you can transfer (or allocate premium payments) to a non-designated investment option is the first business day after the fifth rider anniversary. You will be required to terminate the rider first (and lose its benefits).

• We can change a designated allocation group or eliminate a designated investment option at any time. If this occurs, then a policy owner will be required to reallocate values in the affected

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designated investment options to other designated investment options that meet the allocation requirements.

Manual Upgrades. You can upgrade the withdrawal base to the policy value during the 30-day period following each successive fifth rider anniversary by sending us written notice in a form acceptable to us, as long as the rider issue requirements for a new rider are met. At this time the rider withdrawal amount and, if applicable, the rider death benefit will be recalculated. If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date, its own rider fee percentage (which may be higher or lower than your current rider fee percentage) and its own terms and benefits (which may not be as advantageous as the current rider); and any options you elect to change or add. The new rider date will be the date the Company receives all necessary information in good order. You cannot elect a manual upgrade if the annuitant (or the annuitant’s spouse if younger and the joint option is elected) is 86 or older.

Retirement Income Choice^® 1.4 – Additional Options

You may elect the following options with this rider (the options are not mutually exclusive):

• Death Benefit;

• Joint Life; and

• Income Enhancement.

There is an additional fee if you elect the Death Benefit and/or the Income Enhancement Benefit option(s) under the rider. If you elect the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) is lower. Furthermore, if you elect the Joint Life option in combination with the Death Benefit and/or the Income Enhancement Benefit option(s), then the fee for each of those additional options will be different than under the Single Life option. See “Retirement Income Choice^® 1.4 Rider and Additional Option Fees”.

1. Death Benefit. If you elect this rider, you can also elect to add an additional amount to the death benefit payable under the base policy, upon the death of the annuitant (or if the joint life option is selected, the annuitant’s spouse). The additional amount will be equal to the excess, if any, of the rider death benefit over the greater of any optional guaranteed minimum death benefit or the base policy death benefit. The additional amount can be zero. See “Section 8. Death Benefit.”

Rider Death Benefit. The rider death benefit on the rider date is the policy value (less any premium enhancement if the rider is added in the first policy year). After the rider date, the rider death benefit is equal to:

• the rider death benefit on the rider date; plus

• subsequent premium payments; less

• adjustments for withdrawals (as described under “Rider Death Benefit Adjustments,” below).

Rider Death Benefit Adjustments. Gross partial withdrawals up to the rider withdrawal amount in a rider year will reduce the rider death benefit on a dollar-for-dollar basis. Gross partial withdrawals in excess of the rider withdrawal amount in a rider year will reduce the rider death benefit by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in policy value), and possibly to zero. See “Appendix - Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders - Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that results in pro rata adjustments. Rider death benefit adjustments occur immediately following all withdrawals.

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Please note:

• No additional death benefit is payable if the base policy death benefit (including the guaranteed minimum death benefit) exceeds the rider death benefit. The greater the death benefit payable under the guaranteed minimum death benefit selected, the more likely it is that an additional amount will not be payable under the rider death benefit option.

• Excess withdrawals may eliminate the additional death benefit available with this rider. You will continue to pay the fee for this option, even if the additional death benefit available under the rider is $0.

• Manual upgrades to the withdrawal base will result in a recalculation of the rider death benefit. However, automatic step-ups will not reset the rider death benefit.

• If an owner who is not the annuitant dies and the surviving spouse continues the policy, then no additional amount is payable. If the policy is not continued, then the surviving owner (who is also the sole beneficiary) may elect to receive lifetime annuity payments equal to the rider withdrawal amount divided by the number of payments each year instead of receiving the policy’s cash value. Please note that under federal tax law, upon the death of an owner, only a “spouse” as defined under the Federal Defense of Marriage Act is permitted to continue a policy without taking required distributions. (The payment of a death benefit under the policy is triggered by the death of the annuitant.)

The additional death benefit payment option may be referred to as “minimum remaining withdrawal amount” on your policy statement and other documents.

2. Joint Life Benefit. If you elect this rider, then you can also elect to postpone termination of the rider until the later of the annuitant or annuitant’s spouse’s death (only if the annuitant’s spouse continues the policy).

Please note:

• The withdrawal percentage for each “age at the time of first withdrawal” is lower if you elect this option.

• The annuitant’s spouse must be either a joint owner along with the annuitant or the sole primary beneficiary (and there is no joint owner), if you elect this option.

• A former spouse of the annuitant cannot continue to keep the policy in force if no longer married to the annuitant at the time of the annuitant’s death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.

• The annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.

• The rider withdrawal percentage is based on the age of the younger of the annuitant and annuitant’s spouse, if you elect this option.

• The rider death benefit is not payable until the death of the surviving spouse, if you elect this option.

• You cannot elect a manual upgrade if the annuitant or annuitant’s spouse is 86 or older (lower if required by state law).

3. Income Enhancement Option. If you elect this rider, you can also elect to have your withdrawal percentage double if either the annuitant (or the annuitant’s spouse if the joint life option is elected) is confined, due to a medical necessity in a hospital or nursing facility due to physical or cognitive ailments. Benefits from this option are not available unless the rider has been in effect for 12 months (the “waiting period”) and confinement must meet the elimination period of 180 days within the last 365 days. The elimination period and waiting period can, but do not need to, run concurrently.

Please note:

• You cannot elect the Income Enhancement Option if the individual(s) is/are already confined in a hospital or nursing facility.

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• Confinement must be prescribed by a physician based on the individual’s inability to sustain themselves outside of a hospital or nursing facility due to physical or cognitive ailments.

• The increase to the withdrawal percentage stops when the qualifying person or persons is/are no longer confined as described above.

• The hospital and/or nursing facility must meet the criteria listed below to qualify for the benefit.

• You cannot elect the Income Enhancement Option if you are confined in an assisted living facility or a residential care facility.

A Qualifying Hospital must meet the following criteria:

• It is operated pursuant to the laws of the jurisdiction in which it is located;

• It is operated primarily for the care and treatment of sick and injured persons on an inpatient basis;

• It provides 24-hour nursing service by or under the supervision of registered graduate professional nurses;

• It is supervised by a staff of one or more licensed physicians; and

• It has medical, surgical and diagnostic facilities or access to such facilities.

A Qualifying Nursing Facility must meet the following criteria:

• It is operated pursuant to the laws and regulations of the state in which it is located as a nursing facility or Alzheimer’s disease facility;

• It provides care performed or supervised by a registered graduate nurse;

• It provides room and board accommodations; and

• Will provide 24-hour nursing services, 7 days a week by an on-site Registered Nurse and related services on a continuing inpatient basis.

• It has a planned program of policies and procedures developed with the advice of, and periodically reviewed by, at least one physician; and

• It maintains a clinical record of each patient.

A Qualifying Nursing Facility does not include:

• Assisted living facilities or residential care facilities;

• A place primarily for treatment of mental or nervous disorders, drug addiction or alcoholism;

• A home for the aged, a rest home, community living center or a place that provides domestic, resident, retirement or educational care;

• Personal care homes, personal care boarding homes, residential or domiciliary care homes;

• A rehabilitation hospital or basic care facilities;

• Adult foster care facilities, congregate care facilities, family and group living assisted living facilities; or

• Other facilities similar to those described above.

We will require confirmation of confinement in a qualifying hospital or a qualifying nursing facility while benefit payouts are being received. Confirmation of that confinement will be attained and approved by completing our “Income Enhancement Election and Proof of Confinement Questionnaire” form. This form requires additional proof of confinement which may be a physician’s statement, a statement from a hospital or nursing facility administrator, or any other information satisfactory to us which may include information from third party or company interviews and/or visits of the facility. If it is determined that the qualifying individual was not confined in an eligible facility as defined above and has received payments under the Income Enhancement Option, those payments could be considered an excess withdrawal and have a negative effect on the rider values. If confinement ceases, you may re-qualify by satisfying another 180-day elimination period requirement.

Retirement Income Choice^® 1.4 Fees

Retirement Income Choice^® 1.4 Base Rider Fee. The base rider fee is calculated on the rider date and at the beginning of each rider quarter. The base rider fee

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will be adjusted for any premium additions, excess withdrawals, or transfers between designated investment groups during the rider quarter. It will be deducted automatically from your policy value at the end of each rider quarter.

On an annual basis, in general terms, the base rider fee is the applicable “rider fee percentage” (see the Fee Table) times the withdrawal base.

The base quarterly fee is calculated by multiplying (A) by (B) divided by (C) multiplied by (D), where:

(A) is the withdrawal base;

(B) is the sum of each designated investment group’s rider fee percentage multiplied by the applicable designated investment group’s value;

(C) is the total policy value; and

(D) is the number of remaining days in the rider quarter divided by the total number of days in the applicable rider year.

We will assess a prorated rider fee upon termination of the rider for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

Beginning on the fifth rider anniversary, the rider fee percentage may increase (or decrease) at the time of an automatic step-up. Each time an automatic step-up will result in a rider fee percentage increase, you will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that you do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection, in good order, at our Administrative and Service Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Please note regarding the base rider fee:

• Because the base rider fee is a percentage of the withdrawal base, it could be a much higher percentage of your policy value, particularly in the event that your policy value decreases significantly.

• Because the base rider fee is a percentage of the withdrawal base, the amount of the base rider fee we deduct will increase if the withdrawal base increases (although the percentage(s) may remain the same).

• If you make a transfer from one designated allocation group to another designated allocation group that has a higher rider fee percentage, then the resulting rider fee will be higher.

Base Rider Fee Adjustment for Transfers. For transfers that you make between different designated investment options in different designated allocation groups on other than the first business day of a rider quarter, a “rider fee adjustment” will be applied. This adjustment is necessary because of differences in the rider fee percentages. The adjustment in the rider fee percentage will ensure that you are charged the correct overall rider fee. The base rider fee adjustment will be calculated using the same formula as the base rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be allocated.

Base Rider Fee Adjustment for Premium Payments and Excess Withdrawals. A rider fee adjustment will also be calculated for subsequent premium payments and excess withdrawals because these events will change the withdrawal base. The rider fee adjustment will be calculated using the same formula as the base rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. As with the rider fee adjustments calculated for transfers, the rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

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Additional Option Fees. If you elect options with this rider, then you will be charged a fee for each option you elect that is in addition to the rider fee for the base benefit (see the Fee Table). Each additional fee is charged quarterly before annuitization and is a percentage of the withdrawal base on each rider anniversary.

We will also deduct all rider fees pro rata upon full surrender of the policy or other termination of the rider.

Retirement Income Choice^® 1.4 Rider Issue Requirements

The Company will not issue the Retirement Income Choice^® 1.4 rider unless:

• the annuitant is not yet age 86 (lower if required by state law);

• the annuitant is also an owner (except in the case of non-natural owners);

• there are no more than two owners; and

• if the joint life option is elected, the annuitant’s spouse is also not yet 86 (lower if required by state law) and (1) is a joint owner along with the annuitant or (2) is the sole primary beneficiary (and there is no joint owner).

Termination

The Retirement Income Choice^® 1.4 rider and any additional options will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;

• the death of the annuitant (or if the joint life option was elected, the death of the annuitant’s spouse if that spouse continued the policy as the surviving spouse);

• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your rider withdrawal amount);

• the date the policy to which this rider is attached is assigned or the owner is changed without our approval;

• the date an excess withdrawal reduces your policy value to zero; or

• termination of your policy.

Please note: This rider terminates upon annuitization and there is a maximum annuity commencement date at which time your policy will be annuitized according to its terms. However, if you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments which are at least equal to your rider withdrawal amount. Please contact us for more information concerning your options.

The Retirement Income Choice^® 1.4 rider and additional options may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Retirement Income Choice^® 1.4 rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Income Link^® Rider

You may elect to purchase the optional Income Link^® rider which, provides you with: (1) a guaranteed lifetime withdrawal benefit that uses a higher withdrawal percentage for a defined period of time and then resets to a lower percentage (see the “Withdrawal Options and Percentages” section); and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that you allocate 100% of your policy value in certain designated investment choices which are designed to help manage the Company’s risk and support the guarantees under the rider. The tax rules for qualified

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policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Income Link^® rider for a qualified policy. The date this rider is added to your policy is the “rider date.” You choose the date of the first Income Link^® rider systematic withdrawal, which is the Income Link^® rider start date. If you elect the Income Link^® rider you cannot elect another GLWB.

Income Link^® Rider – Base Benefit

Under this benefit, you can receive up to the rider withdrawal amount each Income Link^® rider withdrawal year (first as systematic withdrawals from your policy value and, if necessary, as systematic payments from us), beginning on the Income Link^® rider start date and lasting until the annuitant’s death (unless your withdrawal base is reduced to zero because of a non-Income Link^® rider systematic withdrawal; see Withdrawal Base Adjustments below). The first Income Link^® rider withdrawal year begins on the Income Link^® rider start date and each successive Income Link^® rider withdrawal year begins thereafter on each anniversary of that date.

Income Link^® Rider – Systematic Withdrawals. In order to begin receiving Income Link^® rider systematic withdrawals, you must elect the withdrawal option and frequency (monthly, quarterly, semi-annually or annually) through which you will receive the Income Link^® rider systematic withdrawals (for qualified policies you will also have to elect whether or not to receive your minimum required distribution amount as calculated herein). Any change to the frequency of your Income Link^® rider systematic withdrawals will take effect at the beginning of the next Income Link^® rider withdrawal year. Any other withdrawal, regardless of amount or timing, is a non-Income Link^® rider systematic withdrawal. See “Withdrawal Base Adjustments”.

Of course, you can always withdraw any amount up to your cash value pursuant to your rights under the policy at your discretion however, withdrawals other than Income Link^® rider systematic withdrawals (and certain minimum required distributions) will reduce the withdrawal base. See the “Appendix—Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders - Income Link^® Rider” for an example showing the effect of a hypothetical withdrawal in more detail.

Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider to allow for Income Link^® rider systematic withdrawals from your policy value each Income Link^® rider withdrawal year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the rider withdrawal amount or on a non-systematic basis, because such withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• Depending on which withdrawal option you elect, your withdrawal percentage will decrease after second, third, fourth, fifth, sixth or seventh withdrawal year.

• The longer you wait to start taking Income Link^® rider systematic withdrawals under the rider, the less time you have to benefit from the guarantee because of decreasing life expectancy as you age. You should carefully consider when to begin making withdrawals. There is a risk that you will not begin making withdrawals at the most financially beneficial time for you.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular Income Link^® rider systematic withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for you if you do not foresee a need

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for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All policy value must be allocated to a limited number of specified funds. You should consult with your registered representative to assist you in determining whether these certain investment options are suited for your financial needs and risk tolerance.

• Any withdrawal that is not an Income Link^® rider systematic withdrawal (or certain minimum required distributions) will decrease the withdrawal base; the impact may be on a greater than dollar-for-dollar basis.

• During any Income Link^® rider withdrawal year, if there is a withdrawal base adjustment, the remaining rider withdrawal amount and the Income Link^® rider systematic withdrawal amount will increase or decrease by the same percentage as the withdrawal base.

• Upon the death of the annuitant (or the death of the surviving spouse if the joint option is elected), the Income Link^® rider terminates and all benefits thereunder cease.

• The only way to receive withdrawals (either Income Link^® rider systematic withdrawals or minimum required distributions) without causing an adjustment to the withdrawal base is to use the Income Link^® rider systematic withdrawal programs.

Like all withdrawals, Income Link^® rider systematic withdrawals while this rider is in effect also:

• reduce your policy value;

• reduce the amount you can withdraw “adjustment free” as a minimum required distribution;

• reduce your base policy death benefit and other benefits;

• may be subject to excess interest adjustment;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Withdrawal Amount. You can withdraw up to the rider withdrawal amount systematically each Income Link^® rider withdrawal year from your policy value without causing an adjustment. See “Withdrawal Base Adjustments” below. You must use a systematic withdrawal program to withdraw your rider withdrawal amount. Such withdrawals are Income Link^® rider systematic withdrawals. Any withdrawal other than an Income Link^® rider systematic withdrawal is considered a non-Income Link^® rider systematic withdrawal and will result in a withdrawal base adjustment (except for certain minimum required distributions, see “Minimum Required Distribution”).

The annual rider withdrawal amount is zero until Income Link^® rider start date. On the Income Link^® rider start date and at the beginning of each Income Link^® rider withdrawal year thereafter, the annual rider withdrawal amount is equal to the applicable withdrawal percentage (based on the withdrawal option you elect) multiplied by the withdrawal base. During any Income Link^® rider withdrawal year, the rider withdrawal amount and Income Link^® rider systematic withdrawal amount may be adjusted up or down as described in the Withdrawal Base Adjustment section.

Minimum Required Distribution: Prior to the Income Link^® rider start date, the systematic withdrawal of the minimum required distribution amount (determined as set forth below) will not cause an adjustment. After the Income Link^® rider start date, the withdrawal of the minimum required distribution amount (determined as set forth below) will not cause an adjustment to the withdrawal base; however, it must be withdrawn pursuant to an Income Link^® rider systematic withdrawal program whereby you will receive your Income Link^® rider systematic withdrawals and any remaining minimum required distribution amount as calculated herein distributed at the end of the applicable calendar year (not at the end of the applicable rider year).

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If the plan participant (generally the annuitant) is at least 70 ¹/2 years old, you can withdraw via a systematic withdrawal option, an amount equal to any minimum required distribution amount (for the tax year on that rider anniversary) calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (prior to the first rider anniversary we use the policy value on the rider date and thereafter we use the policy value on the date prescribed by the IRS) and (4) amounts from the current calendar year (no carry-over from past years). Minimum required distribution amounts calculated as set forth above and taken via a systematic withdrawal option will not cause an adjustment under this provision of the rider. Any withdrawal during a calendar year will reduce the withdrawal base adjustment free minimum required distribution amount for that year.

Please note: If you want to change the mode of the systematic withdrawal through which you are receiving your “adjustment free” minimum required distribution, your change will not take effect until the next anniversary of your systematic withdrawal program. Likewise, if you stop a systematic withdrawal program you cannot restart a new systematic program until the date that would have been the anniversary of the systematic withdrawal program you stopped. (For example, if you started a monthly systematic withdrawal program to receive your “adjustment free” minimum required distribution amount on August 19, 2010, and stopped it on December 21, 2010, you could not restart a new systematic withdrawal program until August 19, 2011.)

If your policy value reaches zero, then you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits guaranteed by this rider after your policy value reaches zero, you must select the amount and frequency of future payments. Once selected, the amount and frequency cannot be changed.

Please note:

• The rider withdrawal amount will be zero until the Income Link^® rider start date, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your rider withdrawal amount that is not withdrawn during an Income Link^® rider withdrawal year for withdrawal in a future Income Link^® rider withdrawal year. This means that if you do not take the entire rider withdrawal amount during an Income Link^® rider withdrawal year, you cannot take more than the rider withdrawal amount in the next Income Link^® rider withdrawal year and maintain the rider’s guarantees.

• Non-Income Link^® rider systematic withdrawals may cause you to lose the benefit of the rider.

• All policy value must be allocated to a limited number of specified funds. (See “Designated Investment Options.”)

Withdrawal Options and Percentages. We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the withdrawal option you select. The withdrawal percentages, categorized by withdrawal option, are as follows:

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Withdrawal Option— number years at increased rate	Withdrawal Percentage— Single Life Option	Withdrawal Percentage— Joint Life Option
7 years	5% for 7 years and 4% thereafter	4.5% for 7 years and 3.5% thereafter
6 years	6% for 6 years and 4% thereafter	5.5% for 6 years and 3.5% thereafter
5 years	7% for 5 years and 4% thereafter	6.5% for 5 years and 3.5% thereafter
4 years	8% for 4 years and 4% thereafter	7.5% for 4 years and 3.5% thereafter
3 years	9% for 3 years and 4% thereafter	8.5% for 3 years and 3.5% thereafter
2 years	10% for 2 years and 4% thereafter	9.5% for 2 years and 3.5% thereafter

Please note, once established, the withdrawal percentage will not increase.

Withdrawal Base. We use the withdrawal base to calculate the rider withdrawal amount. The withdrawal base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to non-Income Link^® rider systematic withdrawals.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• Because the withdrawal base is generally equal to the policy value on the rider date, the rider withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

On each rider anniversary, the withdrawal base will equal the greater of:

• current withdrawal base or;

• the Automatic Step-up amount (see “Automatic Step-Up” below).

Automatic Step-Up. On each rider anniversary, we will automatically step-up the withdrawal base to an amount equal to the greater of (1) the highest policy value on any monthiversary^SM during the preceding rider year, if no non-Income Link^® rider systematic withdrawal occurred, or (2) the policy value on the rider anniversary.

The rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum rider fee percentage in the fee table.

Please note:

• The withdrawal base “steps-up” on rider anniversaries whereas a Income Link^® rider withdrawal year begins on the Income Link^® rider start date and each anniversary thereof.

• If an automatic step-up occurs, your remaining rider withdrawal amount and Income Link^® rider systematic withdrawal amount is proportionally increased for the remainder of that Income Link^® rider withdrawal year.

Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, you have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that you do so within 30 days after the rider anniversary on which the automatic step-up

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occurred. We must receive your rejection (each time you elect to opt out), in good order, at our Administrative and Service Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Withdrawal Base Adjustments. Premium additions will increase the withdrawal base on a dollar-for-dollar basis. See “Automatic Step-Up” for a description of how automatic step-ups increase the withdrawal base.

Income Link^® rider systematic withdrawals up to the rider withdrawal amount will not reduce the withdrawal base. Non-Income Link^® rider systematic withdrawals will reduce the withdrawal base, however, by the greater of the dollar amount of the withdrawal (if the policy value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the policy value when the policy value is less than the withdrawal base), possibly to zero. See “Appendix – Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders -Income Link^® Rider” for examples showing the effect of hypothetical withdrawals in more detail. The effect of a negative adjustment is amplified if the policy value is less than the withdrawal base. See the “Appendix – Guaranteed Lifetime Benefit Adjustment Partial Surrenders – Income Link^® Rider” for examples showing the effect of hypothetical non-Income Link^® rider systematic withdrawals in more detail, including a non-Income Link^® rider systematic withdrawal that reduces the withdrawal base by a pro rata amount. Withdrawal base adjustments occur immediately following premium additions or non-Income Link^® rider systematic withdrawals. If you take a non-Income Link^® rider systematic withdrawal that reduces your policy value (and withdrawal base) to zero, then the Income Link^® rider will terminate and you will lose all its benefits.

Please Note: We do not monitor for non-Income Link^® rider systematic withdrawals or notify you of withdrawal base adjustments. If you take a non-Income Link^® rider systematic withdrawal please note your Income Link^® rider systematic withdrawal amount will be reduced.

Designated Investment Options. If you elect this rider, you must designate 100% of your policy value into one or more of the designated investment options:

Transamerica AEGON Active Asset Allocation -Conservative VP – Service Class

Transamerica AEGON Money Market VP – Service Class

Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

Transamerica Asset Allocation - Conservative VP – Service Class

Transamerica JPMorgan Core Bond VP – Service Class

Transamerica JPMorgan Tactical Allocation VP – Service Class

Transamerica PIMCO Real Return TIPS VP – Service Class

Transamerica PIMCO Total Return VP – Service Class

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica Index 35 VP – Service Class

American Funds - Bond Fund – Class 2

Fixed Account

Transfers between the designated investment options are allowed as permitted under the policy; however, you cannot transfer any amount (or allocate premium payments) to any non-designated investment option. Following the fifth rider anniversary you can terminate this rider. Starting the next business day, you may transfer (or allocate

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premium payments) to a non-designated investment option. Terminating the rider will result in losing all your benefits under the rider.

Please note:

• The earliest you can transfer (or allocate premium payments) to a non-designated investment option is the first business day after the fifth rider anniversary. You will be required to terminate the rider first (and lose its benefits).

• We can eliminate a designated investment option at any time. If this occurs, then a policy owner will be required to reallocate values in the affected designated investment options to other designated investment options that meet the allocation requirements.

Income Link^® Rider– Joint Life Option

If you elect this rider, then you can also elect to postpone termination of the rider until the later of the annuitant or annuitant’s spouse’s death (only if the annuitant’s spouse continues the policy).

If you elect the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) is lower.

Please note:

• The withdrawal percentage for each withdrawal option is lower if you elect this option.

• The annuitant’s spouse must be either a joint owner along with the annuitant or the sole primary beneficiary (and there is no joint owner), if you elect this option.

• A former spouse of the annuitant cannot continue to keep the policy in force if no longer married to the annuitant at the time of the annuitant’s death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.

• The annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.

Income Link^® Rider Fees

Income Link^® Rider Fee. The rider fee is calculated on the rider date and at the beginning of each rider quarter. The rider fee will be adjusted for any premium additions and non-Income Link^® rider systematic withdrawals during the rider quarter. It will be deducted automatically from your policy value at the end of each rider quarter.

On an annual basis, in general terms, the rider fee is the applicable “rider fee percentage” (see the Fee Table) times the withdrawal base.

The quarterly fee is calculated by multiplying (A) by (B) by (C), where:

(A) is the withdrawal base;

(B) rider fee percentage; and

(C) is the number of remaining days in the rider quarter divided by the total number of days in the applicable rider year.

We will assess a prorated rider fee upon termination of the rider for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

Beginning on the first rider anniversary, the rider fee percentage may increase (or decrease) at the time of an automatic step-up. Each time an automatic step-up will result in a rider fee percentage increase, you will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that you do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection, in good order, at our Administrative and Service Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

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Please note regarding the rider fee:

• Because the rider fee is a percentage of the withdrawal base, it could be a much higher percentage of your policy value, particularly in the event that your policy value decreases significantly.

• Because the rider fee is a percentage of the withdrawal base, the amount of the rider fee we deduct will increase if the withdrawal base increases (although the percentage will remain the same).

Rider Fee Adjustment for Withdrawal Base Adjustments. A rider fee adjustment will also be calculated for subsequent premium payments and non-Income Link^® rider systematic withdrawals because these events will change the withdrawal base. The rider fee adjustment will be calculated using the same formula as the rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

We will also deduct the rider fee pro rata upon full surrender of the policy or other termination of the rider.

Income Link^® Rider Issue Requirements

The Company will not issue the Income Link^® rider unless:

• the annuitant is at least 55 years old and not yet 81 years old (lower if required by state law);

the annuitant is also an owner (except in the case of non-natural owners);

• there are no more than two owners; and

• if the joint life option is elected, the annuitant’s spouse is at least 55 years old and not yet 81 years old (lower if required by state law) and (1) is a joint owner along with the annuitant or (2) is the sole primary beneficiary (and there is no joint owner).

Termination

The Income Link^® rider will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the rider if such notice is received by us following the fifth rider anniversary;

• the death of the annuitant (or if the joint life option was elected, the death of the annuitant’s spouse if that spouse continued the policy as the surviving spouse);

• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your rider withdrawal amount);

• the date the policy to which this rider is attached is assigned or the owner is changed without our approval;

• the date an excess withdrawal reduces your policy value to zero; or

• termination of your policy.

Please note: This rider terminates upon annuitization and there is a maximum annuity commencement date at which time your policy will be annuitized according to its terms. However, if you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments which are at least equal to your rider withdrawal amount. Please contact us for more information concerning your options.

The Income Link^® rider may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Income Link^® rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

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Retirement Income Max^SM Rider

You may elect to purchase the optional Retirement Income Max^SM rider which, provides you with: (1) a guaranteed lifetime withdrawal benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that you allocate 100% of your policy value in certain designated investment choices which are designed to help manage the Company’s risk and support the guarantees under the rider. The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Retirement Income Max^SM rider for a qualified policy. If you elect the Retirement Income Max^SM rider you cannot elect another GLWB.

Retirement Income Max^SM – Base Benefit

Under this benefit, you can receive up to the rider withdrawal amount each rider year (first as withdrawals from your policy value and, if necessary because your policy value goes to zero by other than an excess withdrawal, as payments from us for life), starting with the rider year immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday and lasting until the annuitant’s (or surviving spouse’s if the joint life option is elected) death (unless your withdrawal base is reduced to zero because of an “excess withdrawal”; see Withdrawal Base Adjustments, below). A rider year begins on the rider date and thereafter on each anniversary of that date.

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion.

See the “Appendix—Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders - Retirement Income Max^SM Rider” for examples showing the effect of hypothetical withdrawals in more detail.

Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider to allow for withdrawals from your policy value each rider year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the rider withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantee provided by the rider.

• The longer you wait to start making withdrawals under the benefit, the less time you have to benefit from the guarantee because of decreasing life expectancy as you age. On the other hand, the longer you wait to begin making withdrawals, the higher your withdrawal percentage may be, the higher the withdrawal base due to growth may be, and the more opportunities you will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that you will not begin making withdrawals at the most financially beneficial time for you.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All policy value must be allocated to a limited number of specified funds. You should consult with your registered representative to assist you in determining whether these certain investment options are suited for your financial needs and risk tolerance.

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• Cumulative withdrawals in any rider year that are in excess of the rider withdrawal amount are excess withdrawals.

• An excess withdrawal may impact the withdrawal base on a greater than dollar-for-dollar basis.

• Upon the death of the annuitant (or the death of the surviving spouse if the joint option is elected), the Retirement Income Max^SM rider terminates and all benefits thereunder cease.

Like all withdrawals, withdrawals while this rider is in effect also:

• reduce your policy value;

• reduce your base policy death benefit and other benefits;

• may be subject to excess interest adjustment;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Withdrawal Amount. You can withdraw up to the rider withdrawal amount in any rider year (after age 59) from your policy value without causing an excess withdrawal. See “Withdrawal Base Adjustments” below.

The rider withdrawal amount is zero if the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is not 59 years old on the rider date and remains zero until the first day of the rider year after the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) 59th birthday. If the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is at least 59 years old on the rider date, then the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage (see below).

For qualified policies: If the plan participant (generally the annuitant) is at least 70 ¹/2 years old, the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

• the rider withdrawal amount described above; or

• an amount equal to any minimum required distribution amount (for the tax year on that rider anniversary) calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (prior to the first rider anniversary we use the policy value on the rider date and thereafter we use the policy value on the date prescribed by the IRS) and (4) amounts from the current calendar year (no carry-over from past years).

Only amounts calculated as set forth above can be used as the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider. See “Appendix – Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders – Retirement Income Max^SM Rider” for an example showing the effect of a minimum required distribution amount.

If your policy value reaches zero:

• due to a non-excess withdrawal, then you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits guaranteed by this rider after your policy value reaches zero, (i.e., payments of the rider withdrawal amount for life) you must select the amount and frequency of future payments. Once selected, the amount and frequency cannot be changed.

• due to an excess withdrawal, then this rider terminates (as does the policy).

Please note:

• If the rider is added prior to the annuitant’s 59th birthday, the rider withdrawal amount will be

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zero until the beginning of the rider year after the annuitant’s 59th birthday, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if you do not take the entire rider withdrawal amount during a rider year, you cannot take more than the rider withdrawal amount in the next rider year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

• All policy value must be allocated to a limited number of specified funds. (See “Designated Investment Options.”)

Withdrawal Percentage. We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) 59th birthday. The withdrawal percentage is as follows:

Age at time of first withdrawal	Withdrawal Percentage— Single Life Option			Withdrawal Percentage— Joint Life Option
0-58		0.0	%		0.0	%
59-64		4.5	%		4.10	%
65-74		5.5	%		5.10	%
³75		6.5	%		6.10	%

Please note, once established, the withdrawal percentage will not generally increase even though the annuitant’s age increases except in certain instances involving automatic step-ups.

Withdrawal Base. We use the withdrawal base to calculate the rider withdrawal amount. The withdrawal base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to excess withdrawals.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• Because the withdrawal base is generally equal to the policy value on the rider date, the rider withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

On each rider anniversary, the withdrawal base will equal the greatest of:

• current withdrawal base;

• the withdrawal base immediately before the rider anniversary, increased by the growth credit, if any (see “Growth” below);

• the policy value on any monthiversary^SM , (the same day of the month as the rider date, or the next business day if our Administrative Office or the New York Stock Exchange are closed) including the current rider anniversary (see “Automatic Step-Up” below).

See “Appendix – Hypothetical Example of the Withdrawal Base Calculation – Retirement Income Max^SM Rider” which illustrates the hypothetical example of the withdrawal base calculation.

Growth. On each of the first ten rider anniversaries, we will add an annual growth credit to your withdrawal base if no withdrawal occurred during the

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preceding rider year. The annual growth credit is equal to 5.0% of the withdrawal base immediately before the rider anniversary (i.e., withdrawal base x 0.05).

Please note: Because a withdrawal will eliminate a potential growth credit for that rider year, you should consider your need or possible need to take withdrawals within the first 10 rider years in deciding whether to purchase the rider.

Automatic Step-Up. On each rider anniversary, we will automatically step-up the withdrawal base to an amount equal to the greater of (1) the highest policy value on any monthiversary^SM during the preceding rider year, if no excess withdrawal occurred, or (2) the policy value on the rider anniversary. This comparison takes place after the application of any applicable annual growth credit. The withdrawal percentage (as indicated in the withdrawal percentage table) will also increase if you have crossed into another age band prior to the automatic step-up.

On each rider anniversary the rider fee percentage may increase (or decrease) up to 75 basis points (0.75%) at the time of any automatic step-up (but will not exceed the maximum rider fee percentage in the fee table), i.e., the rider fee percentage is reset to the rider fee percentage then associated with newly issued riders.

Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, you have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentage, and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that you do so within 30 days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection (each time you elect to opt out), in good order, at our Administrative and Service Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Withdrawal Base Adjustments. Cumulative gross partial withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Cumulative gross partial withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal (if the policy value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the policy value when the policy value is less than the withdrawal base), possibly to zero. If an excess withdrawal reduces the policy value to zero, this rider will terminate. Withdrawal base adjustments occur immediately following excess withdrawals. See “Appendix - Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders - Retirement Income Max^SM Rider” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base by a pro rata amount. The effect of an excess withdrawal is amplified if the policy value is less than the withdrawal base.

Please Note: We do not monitor for, or notify you of, excess withdrawals. If you take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because your otherwise regular or scheduled non-excess withdrawals may thereafter all be excess withdrawals that reduce or eliminate your benefit on an accelerated basis.

Designated Investment Options. If you elect this rider, you must designate 100% of your policy value into one or more of the designated investment options:

American Funds – Bond Fund – Class 2

Transamerica AEGON Money Market VP – Service Class

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Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica Index 35 VP – Service Class

Transamerica Index 50 VP – Service Class

Transamerica Madison Balanced Allocation VP – Service Class

Transamerica Madison Conservative Allocation VP – Service Class

Transamerica Madison Diversified Income VP – Service Class

Transamerica PIMCO Real Return TIPS VP – Service Class

Transamerica PIMCO Total Return VP – Service Class Fixed Account

Transfers between the designated investment options are allowed as permitted under the policy; however, you cannot transfer any amount (or allocate premium payments) to any non-designated investment option. Within 30 days following the fifth rider anniversary (and each successive fifth rider anniversary), you can terminate this rider. Starting the next business day, you may transfer (or allocate premium payments) to a non-designated investment option. Terminating the rider will result in losing all your benefits under the rider.

Please note:

• The earliest you can transfer (or allocate premium payments) to a non-designated investment option is the first business day after the fifth rider anniversary. You will be required to terminate the rider first (and lose its benefits).

• We can eliminate a designated investment option at any time. If this occurs, then a policy owner will be required to reallocate values in the affected designated investment options to other designated investment options that meet the allocation requirements.

Retirement Income Max^SM – Joint Life Option

If you elect this rider, then you can also elect to postpone termination of the rider until the later of the annuitant or annuitant’s spouse’s death (only if the annuitant’s spouse continues the policy). If you elect the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) is lower.

Please note:

• The annuitant’s spouse must be either a joint owner along with the annuitant or the sole primary beneficiary (and there is no joint owner), if you elect this option.

• A former spouse of the annuitant cannot continue to keep the policy in force if no longer married to the annuitant at the time of the annuitant’s death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.

• The annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.

• The rider withdrawal percentage is based on the age of the younger of the annuitant and annuitant’s spouse, if you elect this option.

• The withdrawal percentage for each “age at the time of the first withdrawal” is lower if you elect this option.

Retirement Income Max^SM Rider Fees

Retirement Income Max^SM. The rider fee is calculated on the rider date and at the beginning of each rider quarter. The rider fee will be adjusted for any premium additions and excess withdrawals. It will be deducted automatically from your policy value at the end of each rider quarter.

On an annual basis, in general terms, the rider fee is the “rider fee percentage” (see the Fee Table) times the withdrawal base. Specifically, the quarterly fee is calculated by multiplying (A) by (B) multiplied by (C), where:

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(A) is the withdrawal base;

(B) is the rider fee percentage; and

(C) is the number of remaining days in the rider quarter divided by the total number of days in the applicable rider year.

Example 1: Calculation at rider issue for first quarter rider fee assuming an initial withdrawal base of $100,000.

=100,000*0.01(91/365)

=1,000*(91/365)

=$249.32

We will assess a prorated rider fee upon termination of the rider for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

On each rider anniversary the rider fee percentage may increase (or decrease) at the time of an automatic step-up. Each time an automatic step-up results in a rider fee percentage increase, you will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that you do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection, in good order, at our Administrative and Service Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Please note regarding the rider fee:

• Because the rider fee is a percentage of the withdrawal base, it could be a much higher percentage of your policy value, particularly in the event that your policy value decreases significantly.

• Because the rider fee is a percentage of the withdrawal base, the amount of the rider fee we deduct will increase if the withdrawal base increases (although the percentage(s) may remain the same).

Rider Fee Adjustment for Premium Payments and Excess Withdrawals. A rider fee adjustment will be calculated for subsequent premium payments and excess withdrawals because these events will change the withdrawal base. The rider fee adjustment will be calculated using the same formula as the rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

Example 2: Calculation for first quarter fee assuming initial withdrawal base from Example 1 above, plus adjustment for additional premium payment of $10,000 made with 20 days remaining in the first rider quarter. The withdrawal base change equals $10,000. Fee adjustment as follows:

=10,000*0.01(20/365)

=100*(20/365)

=$5.48

Total fee assessed at the end of the first rider quarter (assuming no further rider fee adjustments):

=5.48 + 249.32

=$254.80

We will also deduct all rider fees pro rata upon full surrender of the policy or other termination of the rider.

Retirement Income Max^SM Rider Issue Requirements

The Company will not issue the Retirement Income Max^SM rider unless:

• The annuitant is not yet age 86 (lower if required by state law);

• the annuitant is also an owner (except in the case of non-natural owners);

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• there are no more than two owners; and

• if the joint life option is elected, the annuitant’s spouse is also not yet 86 (lower if required by state law) and (1) is a joint owner along with the annuitant or (2) is the sole primary beneficiary (and there is no joint owner).

Termination

The Retirement Income Max^SM rider will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;

• the death of the annuitant (or if the joint life option was elected, the death of the annuitant’s spouse if that spouse continued the policy as the surviving spouse);

• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your rider withdrawal amount);

• the date the policy to which this rider is attached is assigned or if the owner is changed without our approval;

• the date an excess withdrawal reduces your policy value to zero; or

• termination of your policy.

Please note: This rider terminates upon annuitization and there is a maximum annuity commencement date at which time your policy will be annuitized according to its terms. However, if you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments which are at least equal to your rider withdrawal amount. Please contact us for more information concerning your options.

The Retirement Income Max^SM rider and additional options may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Retirement Income Max^SM rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

11. OTHER INFORMATION

Ownership

You, as owner of the policy, exercise all rights under the policy. You can change the owner at any time by notifying us in writing at our Administrative and Service Office. An ownership change may be a taxable event.

Beneficiary

The beneficiary designation will remain in effect until changed. The owner may change the designated beneficiary by sending written notice to the Company. The beneficiary’s consent to such change is not required unless the beneficiary was irrevocably designated or law requires consent. (If an irrevocable beneficiary dies, the owner may then designate a new beneficiary.) The change will take effect as of the date the owner signs the written notice, whether or not the owner is living when the notice is received by the Company. The Company will not be liable for any payment made before the written notice is received. If more than one beneficiary is designated, and the owner fails to specifiy their interests, they will share equally. If, upon the death of the annuitant, there is a surviving owner(s), then the surviving owner(s) automatically takes the place of any beneficiary designation.

Right to Cancel Period

You may return your policy for a refund, but only if you return it within a prescribed period, which is generally 10 days (after you receive the policy), or

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whatever longer time may be required by state law. The amount of the refund will generally be the premiums paid plus or minus accumulated gains or losses in the separate account. You bear the risk of any decline in policy value during the right to cancel period. However, if state law requires, we will refund your original premium payment(s). We will pay the refund within seven days after we receive in good order within the applicable period at our Administrative and Service Office, written notice of cancellation and the returned policy. The policy will then be deemed void.

Assignment

You can also generally assign the policy any time during your lifetime. We will not be bound by the assignment until we receive written notice of the assignment in good order at our Administrative and Service Office and approve it. We reserve the right, except to the extent prohibited by applicable laws, regulations, or actions of the State insurance commissioner, to require that an assignment will be effective only upon acceptance by us, and to refuse assignments or transfers at any time on a non-discriminatory basis. We will not be liable for any payment or other action we take in accordance with the policy before we approve the assignment. There may be limitations on your ability to assign a qualified policy. An assignment may have tax consequences.

Sending Forms and Transaction Requests in Good Order

We cannot process your requests for transactions relating to the policy until we have received them in good order at our Administrative and Service Office. “good order” means the actual receipt by us of the instructions relating to the requested transaction in writing (or, when appropriate, by telephone or electronically, along with all forms, information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes, to the extend applicable to the transaction: your completed application; the policy number; the transaction amount (in dollars or percentage terms); the names and allocations to and/or from the Subaccounts affected by the requested transaction; the signatures of all policy owners (exactly as registered on the Policy) if necessary; Social Security Number or Taxpayer I.D.; and any other information or supporting documentation that we may require, including any spousal or joint owner’s consents. With respect to purchase requests, “good order” also generally includes receipt (by us) of sufficient funds to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time.

Mixed and Shared Funding

Before making a decision concerning the allocation of premium payments to a particular subaccount, please read the prospectuses for the underlying fund portfolios. The underlying fund portfolios are not limited to selling their shares to this separate account and can accept investments from any insurance company separate account or qualified retirement plan. Since the underlying fund portfolios are available to registered separate accounts offering variable annuity products of the Company, as well as variable annuity and variable life products of other insurance companies, and qualified retirement plans, there is a possibility that a material conflict may arise between the interests of this separate account and one or more of the other separate accounts of another participating insurance company. In the event of a material conflict, the affected insurance companies, including the Company, agree to take any necessary steps to resolve the matter. This may include removing their separate accounts from the underlying fund portfolios. See the underlying fund portfolios prospectuses for more details.

104

Exchanges and Reinstatements

You can generally exchange one annuity policy for another in a “tax-free exchange” under Section 1035 of the Internal Revenue Code. Before making an exchange, you should compare both annuities carefully. Remember that if you exchange another annuity for the one described in this prospectus, then you may pay a surrender charge on the other annuity and other charges may be higher (or lower) and the benefits under this annuity may be different. You should not exchange another annuity for this one unless you determine, after knowing all the facts, that the exchange is in your best interest and not just better for the person trying to sell you this policy (that person will generally earn a commission if you buy this policy through an exchange or otherwise).

You may surrender your policy and transfer your money directly to another life insurance company (sometimes referred to as a 1035 Exchange or a trustee-to-trustee transfer). You may also ask us to reinstate your policy after such a transfer and in certain limited circumstances we will allow you to do so by returning the same total dollar amount of funds to the applicable investment choices. The dollar amount will be used to purchase new accumulation units at the then current price. Because of changes in market value, your new accumulation units may be worth more or less than the units you previously owned. We recommend that you consult a tax professional to explain the possible tax consequences of exchanges and/or reinstatements.

Voting Rights

To the extent required by law, the Company will vote all shares of the underlying fund portfolios held in the separate account in accordance with instructions we receive from you and other owners that have voting interests in the portfolios. We will send you and other owners requests for instructions on how to vote those shares. When we receive those instructions, we will vote all of the shares in proportion to those instructions. Accordingly, it is possible for a small number of policy owners (assuming there is a quorum) to determine the outcome of a vote, especially if they have large policy values. If, however, we determine that we are permitted to vote the shares in our own right, we may do so.

Each person having a voting interest will receive proxy material, reports, and other materials relating to the appropriate portfolio.

Legal Proceedings

There are no legal proceedings to which the separate account is a party or to which the assets of the separate account are subject. The Company, like other life insurance companies, is involved in lawsuits. In some class action and other lawsuits involving other 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, the Company believes that at the present time there are no pending or threatened lawsuits that are reasonably likely to have a material adverse impact on the separate account, on the ability of Transamerica Capital, Inc., to perform under its principal underwriting agreement, or on the ability of the Company to meet its obligations under the policy.

Transamerica Life Insurance Company

Transamerica Life Insurance Company was incorporated under the laws of the State of Iowa on April 19, 1961 as NN Investors Life Insurance Company, Inc. It is engaged in the sale of life and health insurance and annuity policies. The Company 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

105

The Netherlands, the securities of which are publicly traded. AEGON N.V., a holding company, conducts its business through subsidiary companies engaged primarily in the insurance business. The Company is licensed in the District of Columbia, Guam, Puerto Rico, the U.S. Virgin Islands, and all states except New York.

All obligations arising under the policies, including the promise to make annuity payments, are general corporate obligations of the Company. Accordingly, no financial institution, brokerage firm or insurance agency is responsible for the financial obligations of the Company arising under the policies.

Financial Condition of the Company

We pay benefits under your Contract from our general account assets and/or from your policy value held in the separate account. It is important that you understand that payments of the benefits depend upon certain factors discussed below.

Assets in the Separate Account.You assume all of the investment risk for your policy value that is allocated to the subaccounts of the separate account. Your policy value in those subaccounts constitutes a portion of the assets of the separate account. These assets are segregated and insulated from our general account, and may not be charged with liabilities arising from any other business that we may conduct.

Assets in the General Account. You also may be permitted to make allocations to guaranteed period options of the fixed account, which are supported by the assets in our general account. Any guarantees under a policy that exceed policy value, such as those associated with any lifetime withdrawal benefit riders and any optional death benefits, are paid from our general account (and not the separate account). Therefore, any amounts that we may be obligated to pay under the policy in excess of policy value are subject to our financial strength and claims-paying ability and our long-term ability to make such payments. The assets of the separate account, however, are also available to cover the liabilities of our general account, but only to the extent that the separate account assets exceed the separate account liabilities arising under the policies supported by it.

We issue other types of insurance policies and financial products as well, and we also pay our obligations under these products from our assets in the general account.

Our Financial Condition. As an insurance company, we are required by state insurance regulation to hold a specified amount of reserves in order to meet all the contractual obligations of our general account. In order to meet our claims-paying obligation we monitor our reserves so that we hold sufficient amounts to cover actual or expected policy and claims payments. However, it is important to note that there are risks to purchasing any insurance product.

State insurance regulators also require insurance companies to maintain a minimum amount of capital, which acts as a cushion in the event that the insurer suffers a financial impairment, based on the inherent risks in the insurer’s operations. These risks include those associated with losses that we may incur as the result of defaults on the payment of interest or principal on our general account assets, which include bonds, mortgages, general real estate investments, and stocks, as well as the loss in market value of these investments.

How to Obtain More Information. We encourage both existing and prospective policy owners to read and understand our financial statements. We prepare our financial statements on a statutory basis. Our financial statements, which are presented in conformity with accounting practices prescribed or permitted by the Iowa Department of Commerce, Insurance Division as well as the financial statements of the separate account—are located in the statement of Additional Information (SAI). For a free copy of

106

the SAI, simply call or write us at the phone number or address of our Administrative and Service Office referenced in this prospectus. In addition, the SAI’s available on the SEC;s website at http://www.sec.gov. Our financial strength can be found on our website.

The Separate Account

The Company established a separate account, called Separate Account VA B, under the laws of the State of Iowa on January 19, 1990. The separate account receives and invests the premium payments that are allocated to it for investment in shares of the underlying fund portfolios.

The separate account is registered with the SEC as a unit investment trust under the 1940 Act. However, the SEC does not supervise the management, the investment practices, or the policies of the separate account or the Company. Income, gains and losses (whether or not realized), from assets allocated to the separate account are, in accordance with the policies, credited to or charged against the separate account without regard to the Company’s other income, gains or losses.

The assets of the separate account are held in the Company’s name on behalf of the separate account and belong to the Company. However, those assets that underlie the policies are not chargeable with liabilities arising out of any other business the Company may conduct. The separate account may include other subaccounts that are not available under these policies.

Distribution of the Policies

Distribution and Principal Underwriting Agreement. We have entered into a principal underwriting agreement with our affiliate, Transamerica Capital, Inc. (TCI), for the distribution and sale of the policies. We pay commissions to TCI which are passed through to selling firms. (See below). We also pay TCI an “override” that is a percentage of total commissions paid on sales of our policies which is not passed through to the selling firms and we may reimburse TCI for certain expenses it incurs in order to pay for the distribution of the policies. TCI markets the policies through bank affiliated firms, national brokerage firms, regional and independent broker-dealers and independent financial planners.

Compensation to Broker-Dealers Selling the Policies. The policies are offered to the public through broker-dealers (“selling firms”) that are licensed under the federal securities laws; the selling firm and/or its affiliates are also licensed under state insurance laws. The selling firms have entered into written selling agreements with us and with 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 the selling firms. We also provide compensation to a limited number of broker-dealers for providing ongoing service in relation to the policies that have already been purchased.

The selling firms that have selling agreements with us and TCI are paid commissions for the promotion and sale of the policies according to one or more schedules. The amount and timing of commissions may vary depending on the selling agreement, but the maximum commission is 1.25% of premiums (additional amounts may be paid as overrides to wholesalers).

To the extent permitted by Financial Industry Regulatory Authority (FINRA) rules, TCI may pay (or allow other broker-dealers to provide) promotional incentives or payments in the form of cash or non-cash compensation or reimbursement to some, but not all, selling firms and their sales

107

representatives. These arrangements are sometimes referred to as “revenue sharing” arrangements and are described further below.

The sales representative who sells you the policy typically receives a portion of the compensation we (and our affiliates) pay to the selling firms, depending on the agreement between the selling firm and its 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.

You should be aware that a selling firm or its sales representatives may receive different compensation or incentives for selling one product over another. In some cases, these differences may create an incentive for the selling firm or its sales representatives to recommend or sell this policy to you. You may wish to take such incentives into account when considering and evaluating any recommendation relating to the policies.

Special Compensation Paid to Affiliated Firms. We and/or our affiliates provide paid-in capital to TCI and pay the cost of TCI’s operating and other expenses, including costs for facilities, legal and accounting services, and other internal administrative functions. We and/or our affiliates also provide TCI with a percentage of total commissions paid on sales of our policies and provide TCI with capital payments that are not contingent on sales.

TCI’s registered representatives and supervisors may receive non-cash compensation, such as attendance at conferences, seminars and trips (such as travel, lodging and meals in connection therewith), entertainment, merchandise and other similar items, payments, loans, loan forgiveness or loan guaranties.

Additional Compensation That We, TCI and/or Our Affiliates Pay to Selected Selling Firms. TCI, in connection with the sales of the policies, 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 TCI with access to their distribution network, such selling firms may receive additional compensation or reimbursement for, among other things, the hiring and training of sales personnel, marketing, sponsoring of conferences, meetings, seminars, events, and/or other services they provide to us and our affiliates. To the extent permitted by applicable law, TCI and other parties may provide the selling firms with occasional gifts, meals, tickets or other non-cash compensation as an incentive to sell the policies. These special compensation arrangements are not offered to all selling firms and the terms of such arrangements may differ among selling firms.

Special compensation arrangements are calculated in different ways by different selling firms and may be based on past or anticipated sales of the policies and other criteria. For instance, in 2010, TCI, in connection with the sales of our policies, made flat fee payments to several selling firms ranging from $6,350 to $500,000, and payments of between 0.10% and 1.32% on new sales. TCI also paid selling firms special fees based on new sales and/or assets under management.

During 2010, we and/or TCI had such “preferred product” arrangements with the following selling firms:

AXA

Carillon Financial

Centarus Financial

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CFD Investments

Citizens Bank

Compass Bank

Equity Services

Financial Advisors of America

Financial Network

Fintegra

Genworth Financial

Girard Securities

Hantz Financial

Huntington Bank

Independent Financial Group

Invest Financial Corporation

James T. Borello

Kovack Securities

LPL Financial

M&T Bank

Merrill Lynch

Money Concepts

Morgan Stanley Smith Barney

Multi Family Securities Corp

Multi Financial

National Planning Corporation

Newbridge Securities

NEXT Financial Group

Park Avenue Securities

Primevest

ProEquities

Raymond James and Associates

Raymond James Financial Group

Sigma Financial

Signator Investments

SII Investments

Summit Equities

Suntrust Bank

TFS Securities, Inc.

The Planners Network

Transamerica Financial Advisors

UBS Financial

UnionBanc Investment Services LLC

US Bancorp

Valmark Securities

Wells Fargo/Wachovia

World Equity Group

Word Group Securities

During 2010, in conjunction with TCI, we paid the following amounts (in addition to sales commissions) to the top 10 selling firms (in terms of amounts paid):

Name of Firm	Amount Paid in 2010
Wells Fargo/Wachovia	$	1,327,561
LPL Financial	$	1,170,949
Morgan Stanley Smith Barney	$	1,122,219
Merrill Lynch	$	810,000
Transamerica Financial Advisors	$	750,789
UBS Financial	$	485,097
Raymond James Financial Services	$	426,264
World Group Securities	$	412,219
National Planning Corporation	$	315,904
Citizens Bank	$	270,113

No specific charge is assessed directly to policy owners or the separate account to cover commissions, non-cash compensation, and other incentives or payments described above. We do intend to recoup commissions and other sales expenses and incentives we pay, however, through fees and charges deducted under the policy and other corporate revenue.

109

TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION

Glossary of Terms

The Policy – General Provisions

Certain Federal Income Tax Consequences

Investment Experience

Historical Performance Data

Published Ratings

State Regulation of Transamerica Life Insurance Company

Administration

Records and Reports

Distribution of the Policies

Voting Rights

Other Products

Custody of Assets

Legal Matters

Independent Registered Public Accounting Firm

Other Information

Financial Statements

Appendix – Condensed Financial Information

Appendix – OA Method Transfers

Appendix – PAM Method Transfers

110

APPENDIX

CONDENSED FINANCIAL INFORMATION

The following tables list the accumulation unit value information for accumulation units outstanding for policies with the highest total separate account expenses and policies with the lowest total separate account expenses available on December 31, 2010. Should the total separate account expense applicable to your policy fall between the highest and lowest charges, AND you wish to see a copy of the Condensed Financial Information applicable to your policy, such information is contained in the SAI. You can obtain a copy of the SAI FREE OF CHARGE by contacting us at:

calling:	(800) 525-6205
writing:	Transamerica Life Insurance Company
	4333 Edgewood Road NE
	Cedar Rapids, IA 52499-0001

			2.35%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation – Conservative VP – Service Class		2010	$	0.965395	$	1.025360		4,809.495
Subaccount Inception Date May 1, 2002		2009	$	0.791064	$	0.965395		36,603.301
		2008	$	1.000000	$	0.791064		25,794.608
Transamerica Asset Allocation – Moderate VP – Service Class		2010	$	0.939349	$	1.010826		2,234,645.865
Subaccount Inception Date May 1, 2002		2009	$	0.761839	$	0.939349		2,310,531.733
		2008	$	1.000000	$	0.761839		404,624.442
Transamerica Asset Allocation – Moderate Growth VP – Service Class		2010	$	0.891308	$	0.978872		1,416,892.900
Subaccount Inception Date May 1, 2002		2009	$	0.713422	$	0.891308		1,603,360.459
		2008	$	1.000000	$	0.713422		1,125,198.796
Transamerica International Moderate Growth VP – Service Class		2010	$	0.861942	$	0.928410		940,227.247
Subaccount Inception Date May 1, 2006		2009	$	0.682134	$	0.861942		908,777.419
		2008	$	1.000000	$	0.682134		462,486.792
Transamerica Foxhall Global Conservative VP – Service Class		2010	$	0.982642	$	0.901562		40,387.231
Subaccount inception date November 19, 2009		2009	$	0.995049	$	0.982642		0.000
Transamerica PIMCO Total Return VP – Service Class		2010	$	1.034332	$	1.080675		126,132.538
Subaccount Inception Date May 1, 2002		2009	$	0.914573	$	1.034332		191,381.210
		2008	$	1.000000	$	0.914573		0.000
Transamerica Efficient Markets VP – Service Class		2010	$	1.192580	$	1.309423		50,761.081
Subaccount Inception Date November 10, 2008		2009	$	1.035634	$	1.192580		2,045.146
		2008	$	1.000000	$	1.035634		0.000
Transamerica Multi-Managed Balanced VP – Service Class(1)		2010	$	0.898631	$	1.087704		65,681.892
Subaccount Inception Date May 1, 2002		2009	$	0.730313	$	0.898631		0.000
		2008	$	1.000000	$	0.730313		0.000
Transamerica AEGON Money Market VP – Service Class(2)		2010	$	0.974345	$	0.952007		0.000
Subaccount Inception Date July 5, 1994		2009	$	0.997130	$	0.974345		410,140.730
		2008	$	1.000000	$	0.997130		499,848.546
Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010	$	1.045079	$	1.064206		0.000
Subaccount Inception Date August 3, 1994		2009	$	1.026549	$	1.045079		0.000
		2008	$	1.000000	$	1.026549		24,796.039
Transamerica Index 35 VP – Service Class		2010	$	0.997267	$	1.066205		0.000
Subaccount inception date November 19, 2009		2009	$	0.999936	$	0.997267		0.000

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CONDENSED FINANCIAL INFORMATION — (Continued)

			2.35%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Transamerica Index 50 VP – Service Class		2010	$	0.925927	$	1.001395		109,564.307
Subaccount Inception Date May 1, 2008		2009	$	0.813250	$	0.925927		109,564.307
		2008	$	1.000000	$	0.813250		0.000
Transamerica Index 75 VP – Service Class		2010	$	0.863815	$	0.953742		85,954.038
Subaccount Inception Date May 1, 2008		2009	$	0.717740	$	0.863815		112,931.656
		2008	$	1.000000	$	0.717740		25,744.346
AllianceBernstein Balanced Wealth Strategy Portfolio – Class B		2010	$	1.227904	$	1.320670		41,033.365
Subaccount Inception Date November 10, 2008		2009	$	1.011815	$	1.227904		59,166.767
		2008	$	1.000000	$	1.011815		0.000
Fidelity VIP Balanced Portfolio – Service Class 2		2010	$	0.894518	$	1.029180		205,267.207
Subaccount Inception Date May 1, 2008		2009	$	0.661888	$	0.894518		210,572.384
		2008	$	1.000000	$	0.661888		0.000
Franklin Templeton VIP Founding Funds Allocation Fund – Class 4		2010	$	1.255171	$	1.349963		103,889.394
Subaccount Inception Date November 10, 2008		2009	$	0.989162	$	1.255171		56,305.886
		2008	$	1.000000	$	0.989162		0.000
American Funds – Asset Allocation Fund – Class 2		2010	$	1.007176	$	1.103903		58,640.577
Subaccount inception date November 19, 2009		2009	$	0.989759	$	1.007176		0.000
American Funds – Bond Fund – Class 2		2010	$	0.992900	$	1.029604		0.000
Subaccount inception date November 19, 2009		2009	$	1.000880	$	0.992900		0.000
GE Investments Total Return Fund – Class 3		2010	$	1.002820	$	1.069482		0.000
Subaccount inceptiond date November 19, 2009		2009	$	0.988791	$	1.002820		0.000

			1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation – Conservative VP – Initial Class		2010	$	0.983355	$	1.057969		163,608.614
Subaccount Inception Date May 1, 2002		2009	$	0.795090	$	0.983355		287,379.543
		2008	$	1.021416	$	0.795090		29,044.891
		2007	$	1.000000	$	1.021416		0.000
Transamerica Asset Allocation – Growth VP – Initial Class		2010	$	0.773706	$	0.878403		43,744.168
Subaccount Inception Date May 1, 2002		2009	$	0.603440	$	0.773706		86,447.348
		2008	$	1.012200	$	0.603440		56,071.597
		2007	$	1.000000	$	1.012200		0.000
Transamerica Asset Allocation – Moderate VP – Initial Class		2010	$	0.939452	$	1.024133		52,355.906
Subaccount Inception Date May 1, 2002		2009	$	0.752513	$	0.939452		88,838.746
		2008	$	1.029175	$	0.752513		49,711.129
		2007	$	1.000000	$	1.029175		0.000
Transamerica Asset Allocation – Moderate Growth VP – Initial Class		2010	$	0.858024	$	0.955289		103,718.704
Subaccount Inception Date May 1, 2002		2009	$	0.677869	$	0.858024		25,322.940
		2008	$	1.020832	$	0.677869		11,234.727
		2007	$	1.000000	$	1.020832		0.000
Transamerica BlackRock Large Cap Value VP – Initial Class		2010	$	0.716970	$	0.782085		2,624,342.547
Subaccount Inception Date May 1, 2000		2009	$	0.636826	$	0.716970		498,832.746
		2008	$	0.975360	$	0.636826		7,078.250
		2007	$	1.000000	$	0.975360		0.000
Transamerica Clarion Global Real Estate Securities VP – Initial Class		2010	$	0.661431	$	0.755619		103,545.037
Subaccount Inception Date May 1, 2002		2009	$	0.501961	$	0.661431		111,925.268
		2008	$	0.882088	$	0.501961		87,241.772
		2007	$	1.000000	$	0.882088		9,551

112

CONDENSED FINANCIAL INFORMATION — (Continued)

			1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Transamerica JPMorgan Enhanced Index VP – Initial Class		2010	$	0.771901	$	0.878069		955,697.448
Subaccount Inception Date May 1, 1997		2009	$	0.603098	$	0.771901		867,921.368
		2008	$	0.974724	$	0.603098		350,271.455
		2007	$	1.000000	$	0.974724		0.000
Transamerica Jennison Growth VP – Initial Class		2010	$	0.924062	$	1.024559		898,271.027
Subaccount Inception Date November 20, 1996		2009	$	0.663540	$	0.924062		58,255.688
		2008	$	1.066570	$	0.663540		56,353.894
		2007	$	1.000000	$	1.066570		0.000
Transamerica Morgan Stanley Capital Growth VP – Initial Class(5)		2010	$	0.757969	$	0.954020		217,574.431
Subaccount Inception Date May 1, 2000		2009	$	0.599986	$	0.757969		117,397.925
		2008	$	0.954687	$	0.599986		117,423.314
		2007	$	1.000000	$	0.954687		0.000
Transamerica AEGON High Yield Bond VP – Initial Class		2010	$	1.042268	$	1.157441		135,827.931
Subaccount Inception Date June 2, 1998		2009	$	0.716731	$	1.042268		139,736.995
		2008	$	0.970205	$	0.716731		179,144.803
		2007	$	1.000000	$	0.970205		5,022
Transamerica MFS International Equity VP – Initial Class		2010	$	0.844275	$	0.921384		57,930.215
Subaccount Inception Date May 1, 2001		2009	$	0.644262	$	0.844275		35,539.162
		2008	$	1.008122	$	0.644262		784.555
		2007	$	1.000000	$	1.008122		0.000
Transamerica PIMCO Total Return VP – Initial Class		2010	$	1.166474	$	1.234951		944,465.364
Subaccount Inception Date May 1, 2002		2009	$	1.017843	$	1.166474		488,196.617
		2008	$	1.060211	$	1.017843		179,905.021
		2007	$	1.000000	$	1.060211		0.000
Transamerica T. Rowe Price Small Cap VP – Initial ClassClass		2010	$	0.885390	$	1.175500		99,571.206
Subaccount Inception Date May 1, 2000		2009	$	0.646321	$	0.885390		85,462.541
		2008	$	1.026592	$	0.646321		75,660.367
		2007	$	1.000000	$	1.026592		0.000
Transamerica WMC Diversified Equity VP – Initial Class(6)		2010	$	0.758326	$	0.875147		809,907.023
Subaccount Inception Date May 1, 2000		2009	$	0.598347	$	0.758326		513,815.239
		2008	$	1.075611	$	0.598347		64,968.606
		2007	$	1.000000	$	1.075611		0.000
Transamerica Multi-Managed Balanced VP – Initial Class(1)		2010	$	0.893729	$	1.095604		9,831.489
Subaccount Inception Date May 1, 2002		2009	$	0.716487	$	0.893729		0.000
		2008	$	1.073217	$	0.716487		0.000
		2007	$	1.000000	$	1.073217		0.000
Transamerica AllianceBernstein Dynamic Allocation VP – Initial Class(7)		2010	$	0.928044	$	1.001737		10,304.467
Subaccount Inception Date May 1, 2002		2009	$	0.715652	$	0.928044		0.000
		2008	$	1.147892	$	0.715652		0.000
		2007	$	1.000000	$	1.147892		0.000
Transamerica WMC Diversified Growth VP – Initial Class		2010	$	0.760941	$	0.885413		1,560,393.024
Subaccount Inception Date May 1, 2000		2009	$	0.596343	$	0.760941		1,328,910.460
		2008	$	1.118328	$	0.596343		439,640.646
		2007	$	1.000000	$	1.118328		0.000
Transamerica Morgan Stanley Growth Opportunities VP – Initial Class(8)		2010	$	0.928130	$	1.243587		23,340.828
Subaccount Inception Date May 1, 2001		2009	$	0.686632	$	0.928130		14,853.930
		2008	$	1.176530	$	0.686632		2,431.395
		2007	$	1.000000	$	1.176530		0.000

113

CONDENSED FINANCIAL INFORMATION — (Continued)

			1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Transamerica AEGON Money Market VP – Initial Class(2)		2010	$	1.024461	$	1.011863		278,846.615
Subaccount Inception Date July 5, 1994		2009	$	1.035943	$	1.024461		175,700.728
		2008	$	1.024409	$	1.035943		180,892.971
		2007	$	1.000000	$	1.024409		0.000
Transamerica Systematic Small/Mid Cap Value VP – Initial Class(9)		2010	$	0.920358	$	1.185467		1,083,400.299
Subaccount Inception Date July 5, 1994		2009	$	0.650679	$	0.920358		925,908.280
		2008	$	1.114169	$	0.650679		817,966.099
		2007	$	1.000000	$	1.114169		51,065
Transamerica AEGON U.S. Government Securities VP – Initial Class(3)		2010	$	1.130004	$	1.165195		280,082.228
Subaccount Inception Date August 3, 1994		2009	$	1.095199	$	1.130004		179,774.086
		2008	$	1.030008	$	1.095199		268,176.283
		2007	$	1.000000	$	1.030008		0.000
Transamerica Morgan Stanley Active International Allocation VP – Initial		2010	$	0.795520	$	0.852323		741,595.095
Class		2009	$	0.639849	$	0.795520		761,038.355
Subaccount Inception Date July 5, 1994		2008	$	1.059192	$	0.639849		607,184.790
		2007	$	1.000000	$	1.059192		0.000
Transamerica Multi Managed Large Cap Core VP – Initial Class		2010	$	0.836016	$	0.984005		694,822.922
Subaccount Inception Date July 5, 1994		2009	$	0.582120	$	0.836016		625,211.959
		2008	$	1.017707	$	0.582120		275,627.709
		2007	$	1.000000	$	1.017707		0.000
Transamerica Morgan Stanley Mid-Cap Growth VP – Initial Class		2010	$	0.942178	$	1.246029		52,962.884
Subaccount Inception Date May 1, 2001		2009	$	0.594140	$	0.942178		12,360.682
		2008	$	1.120084	$	0.594140		12,752.965
		2007	$	1.000000	$	1.120084		0.000
PAM Transamerica AEGON U.S. Government Securities VP – Service		2010	$	1.123009	$	1.155985		0.000
Class(3)		2009	$	1.091239	$	1.123009		0.000
Subaccount Inception Date November 3, 2003		2008	$	1.028649	$	1.091239		0.000
		2007	$	1.000000	$	1.028649		0.000
Invesco V.I. Basic Value Fund – Series II Shares		2010	$	0.662709	$	0.699985		6,730.038
Subaccount Inception Date May 1, 2002		2009	$	0.454172	$	0.662709		6,730.038
		2008	$	0.956149	$	0.454172		6,730.038
		2007	$	1.000000	$	0.956149		0.000
Invesco V.I. Capital Appreciation Fund – Series II Shares		2010	$	0.705296	$	0.802509		0.000
Subaccount Inception Date May 1, 2002		2009	$	0.591556	$	0.705296		0.000
		2008	$	1.044012	$	0.591556		0.000
		2007	$	1.000000	$	1.044012		0.000
AllianceBernstein Growth and Income Portfolio – Class B		2010	$	0.693596	$	0.772719		0.000
Subaccount Inception Date May 1, 2001		2009	$	0.583523	$	0.693596		0.000
		2008	$	0.996279	$	0.583523		0.000
		2007	$	1.000000	$	0.996279		0.000
AllianceBernstein Large Cap Growth Portfolio – Class B		2010	$	0.874638	$	0.948778		0.000
Subaccount Inception Date May 1, 2001		2009	$	0.645899	$	0.874638		0.000
		2008	$	1.086768	$	0.645899		0.000
		2007	$	1.000000	$	1.086768		0.000
Fidelity VIP Contrafund ® Portfolio – Service Class 2		2010	$	0.838051	$	0.967811		343,173.154
Subaccount Inception Date May 1, 2000		2009	$	0.626367	$	0.838051		38,114.885
		2008	$	1.106693	$	0.626367		58,886.927
		2007	$	1.000000	$	1.106693		26,292.375

114

CONDENSED FINANCIAL INFORMATION — (Continued)

			1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Fidelity VIP Equity-Income Portfolio – Service Class 2 Subaccount Inception Date May 1, 2000		2010 2009 2008 2007	$ $ $ $	0.685479 0.534361 0.946121 1.000000	$ $ $ $	0.778011 0.685479 0.534361 0.946121		27,256.759 19,540.326 0.000 0.000
Fidelity VIP Growth Portfolio – Service Class 2 Subaccount Inception Date May 1, 2001		2010 2009 2008 2007	$ $ $ $	0.781239 0.618145 1.187869 1.000000	$ $ $ $	0.955719 0.781239 0.618145 1.187869		87,262.768 188,675.400 78,699.092 0.000
Fidelity VIP Growth Opportunities Portfolio – Service Class 2 Subaccount Inception Date May 1, 2000		2010 2009 2008 2007	$ $ $ $	0.714448 0.497297 1.122406 1.000000	$ $ $ $	0.871262 0.714448 0.497297 1.122406		140.226 140.226 140.226 0.000
Fidelity VIP Mid Cap Portfolio – Service Class 2 Subaccount Inception Date May 1, 2000		2010 2009 2008 2007	$ $ $ $	0.876053 0.634696 1.064131 1.000000	$ $ $ $	1.112453 0.876053 0.634696 1.064131		239,743.542 130,784.396 95,843.655 0.000
Fidelity VIP Value Strategies Portfolio – Service Class 2 Subaccount Inception Date May 1, 2002		2010 2009 2008 2007	$ $ $ $	0.694130 0.447216 0.929567 1.000000	$ $ $ $	0.866127 0.694130 0.447216 0.929567		154,721.505 321,966.434 145,251.507 0.000
Franklin Income Securities Fund – Class 2 Subaccount Inception Date May 1, 2007		2010 2009 2008 2007	$ $ $ $	0.903723 0.674813 0.971353 1.000000	$ $ $ $	1.005682 0.903723 0.674813 0.971353		11,327.376 0.000 0.000 0.000
Mutual Shares Securities Fund – Class 2 Subaccount Inception Date May 1, 2007		2010 2009 2008 2007	$ $ $ $	0.746489 0.599635 0.965403 1.000000	$ $ $ $	0.819803 0.746489 0.599635 0.9655403		138,451.656 0.000 0.000 0.000
Templeton Foreign Securities Fund – Class 2 Subaccount Inception Date May 1, 2007		2010 2009 2008 2007	$ $ $ $	0.852876 0.630121 1.070130 1.000000	$ $ $ $	0.913165 0.852876 0.630121 1.070130		3,864.024 3,868.450 3,873.326 0.000
Janus Aspen – Enterprise Portfolio – Service Shares Subaccount Inception Date October 9, 2000		2010 2009 2008 2007	$ $ $ $	0.864100 0.605702 1.092409 1.000000	$ $ $ $	1.071240 0.864100 0.605702 1.092409		5,092.875 5,092.875 5,092.875 0.000
Janus Aspen – Perkins Mid Cap Value Portfolio – Service Shares Subaccount Inception Date October 9, 2000		2010 2009 2008 2007	$ $ $ $	0.923874 0.703750 0.988260 1.000000	$ $ $ $	1.052671 0.923874 0.703750 0.988260		1,885.477 1,889.194 1,893.494 0.000
Janus Aspen – Worldwide Portfolio – Service Shares Subaccount Inception Date October 9, 2000		2010 2009 2008 2007	$ $ $ $	0.739380 0.544832 0.999557 1.000000	$ $ $ $	0.843596 0.739380 0.544832 0.999557		58,537.270 67,651.539 0.000 0.000
MFS® New Discovery Series – Service Class Subaccount Inception Date May 1, 2002		2010 2009 2008 2007	$ $ $ $	0.908059 0.564330 0.944800 1.000000	$ $ $ $	1.219205 0.908059 0.564330 0.944800		12,336.796 22,342.919 1,662.215 0.000

115

CONDENSED FINANCIAL INFORMATION — (Continued)

			1.25%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
MFS® Total Return Series – Service Class Subaccount Inception Date May 1, 2002		2010 2009 2008 2007	$ $ $ $	0.876023 0.753440 0.982111 1.000000	$ $ $ $	0.948559 0.876023 0.753440 0.982111		53,895.854 48,063.575 36,892.965 0.000
Transamerica BlackRock Tactical Allocation VP – Service Class Subaccount inception date May 1, 2009		2010 2009	$ $	1.003480 0.993371	$ $	1.102517 1.003480		55,764.524 0.000
Transamerica Index 35 VP – Service Class Subaccount inception date November 19, 2009		2010 2009	$ $	0.998540 0.999966	$ $	1.079160 0.998540		0.000 0.000
Transamerica Index 50 VP – Service Class Subaccount inception date May 1, 2008		2010 2009	$ $	0.996462 0.991650	$ $	1.089393 0.996462		0.000 0.000
Transamerica Index 75 VP – Service Class Subaccount inception date May 1, 2008		2010 2009	$ $	0.999658 0.988780	$ $	1.115713 0.999658		0.000 0.000
Transamerica Index 100 VP – Service Class Subaccount inception date November 19, 2009		2010 2009	$ $	1.024505 0.999966	$ $	1.157637 1.024505		0.000 0.000
Transamerica JPMorgan Mid Cap Value VP – Service Class Subacount inception date November 19, 2009		2010 2009	$ $	1.029949 0.985165	$ $	1.249382 1.029949		1,787.372 0.000

⁽¹⁾  Formerly known as Transamerica Balanced VP.

⁽²⁾  Formerly known as Transamerica Money Market VP.

⁽³⁾ Formerly known as Transamerica U.S. Government Securities VP.

⁽⁴⁾ Formerly known as Transamerica Foxhall Global Hard Assets VP.

⁽⁵⁾ Formerly known as Transamerica Focus VP.

⁽⁶⁾ Formerly known as Transamerica Diversified Equity VP.

⁽⁷⁾ Formerly known as Transamerica Convertible Securities VP.

⁽⁸⁾ Formerly known as Transamerica Growth Opportunities VP.

⁽⁹⁾ Formerly known as Transamerica Small/Mid Cap Value VP.

Transamerica AEGON Active Asset Allocation - Conservative VP, Transamerica AEGON Active Asset Allocation - Moderate VP, Transamerica AEGON Active Asset Allocation - Moderate Growth VP, Transamerica JPMorgan Core Bond VP, Transamerica JPMorgan Tactical Allocation VP, and Transamerica PIMCO Real Return TIPS VP had not commenced operations as of December 31, 2010, therefore, comparable data is not available.

116

APPENDIX

POLICY VARIATIONS

The dates shown below are the approximate first issue dates of the various versions of the policy. These dates will vary by state in many cases. This Appendix describes certain of the more significant differences in features of the various versions of the policy. There may be additional variations. Please see your actual policy and any attachments for determining your specific coverage.

		Approximate First Issue Date
Policy Form Number	AV212 101 75 1292	May 1993
	V829 & S831 (replacement pages)	January 1994
	AV265 101 89 396	June 1996
	AV339 101 101 497	July 1997
	AV400 101 107 198	May 1998
	AV864 101 165 103	November 2003
Policy Endorsement Form Number	AE872 395	May 1995
	AE900 396	June 1996
	AE957 497	July 1997

Product Feature	Transamerica Freedom 95 Form Number: – AV212 101 75 1292	Transamerica Freedom 95 Form Number: – AV212 101 75 1292, with V829 and S831 Replacement Pages – AV212 101 75 395 SP Replacement Spec – AE 872 395 Death Benefit Endorsement	Transamerica Freedom 96 Form Number: – AV265 101 89 396 – AE900 396
Guaranteed Minimum Death Benefit Option(s)	5% Annually Compounding or Annual Step-Up.	5% Annually Compounding or Annual Step-Up.	A. 5% Annually Compounding B. Annual Step-Up
			C. Return of Premium
			Option A is available if Owner and Annuitant are both under age 75. Option B is available if Owner and Annuitant are both under age 81. Option C is available for issue ages 81-84.
Double Enhanced Death Benefit Designated Funds	N/A	N/A	N/A
Death Proceeds	Greater of:	Greater of:	Greatest of:
	1)  the Policy Value on the date we receive due proof of death 2)  the total premiums paid for this policy, less any partial surrenders made before death, accumulated at 5% interest per annum to the date we receive due proof of death.	1)  the Policy Value on the date we receive due proof of death 2)  the total premiums paid for this policy, less any partial surrenders made before death, accumulated at 5% interest per annum to the date we receive due proof of death.	1)  Policy Value 2)  Cash Value 3)  Guaranteed Minimum Death Benefit
Mortality & Expense Risk Fee and Administrative Charge prior to Annuity Commencement Date	•      1.65% first 10 policy years •      0.25% less after first 10 policy years	•      1.65% first 10 policy years •      0.25% less after first 10 policy years	•      1.65% first 10 policy years •      0.25% less after first 10 policy years
Is Mortality & Expense Risk Fee and Administrative Charge different after the Annuity Commencement Date?	No	No	No

117

Product Feature	Transamerica Freedom 95 Form Number: – AV212 101 75 1292	Transamerica Freedom 95 Form Number: – AV212 101 75 1292, with V829 and S831 Replacement Pages – AV212 101 75 395 SP Replacement Spec – AE 872 395 Death Benefit Endorsement	Transamerica Freedom 96 Form Number: – AV265 101 89 396 – AE900 396
Fund Facilitation Fee	No	No	No
Guaranteed Period Options (available in the Fixed Account)	N/A	N/A	1, 3 and 5 year Guaranteed Periods available.
Distribution Financing Charge	N/A	Applicable	Applicable
Annual Contract Charge (Service Charge)	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary
Optional Riders	•      Family Income Protector •      Managed Annuity Program •      5 for Life 2005	•      Family Income Protector •      Managed Annuity Program •      5 for Life 2005	•      Taxpayer 2003 •      Taxpayer Plus 2 •      Taxpayer •      Family Income Protector •      Managed Annuity Program •      Managed Annuity Program II •      Living Benefit Rider 2003 •      Living Benefit Rider 2005 •      5 for Life 2005
Excess Interest Adjustment	N/A	N/A	Yes
Asset Rebalancing Option	Yes	Yes	Yes
Dollar Cost Averaging Option	Yes (No fixed DCA Account)	Yes	Yes
Nursing Care and Terminal Condition Withdrawal Option	N/A	N/A	Yes (by Endorsement AE 900 396)
Unemployment Waiver	N/A	N/A	N/A
Product Feature	Transamerica Freedom 97 Form Number: – AV339 101 101 497 – AE957 497	Transamerica Freedom 98 Form Number: – AV400 101 107 198 – AE957 497	Transamerica Freedom 98 Form Number: – AV400 101 107 198 – RGMI 1 798
Guaranteed Minimum Death Benefit Option(s)	A. 5% Annually Compounding B. Annual Step-Up C. Return of Premium	A. 5% Annually Compounding B. Double Enhanced C. Return of Premium	A. 5% Annually Compounding B. Double Enhanced C. Return of Premium
	Option A is available if Owner and Annuitant are both under age 75. Option B is available if Owner and Annuitant are both under age 81.	Option A is available if Owner and Annuitant are both under age 75. Option B is available if Owner and Annuitant are both under age 81.	Option A is available if Owner and Annuitant are both under age 75. Option B is available if Owner and Annuitant are both under age 81.
Double Enhanced Death Benefit Designated Funds	N/A	N/A	N/A
Death Proceeds	Greatest of:	Greatest of:	Greatest of:
	1)  Policy Value	1)  Policy Value	1)  Policy Value
	2)  Cash Value	2)  Cash Value	2)  Cash Value
	3)  Guaranteed Minimum   Death Benefit.	3)  Guaranteed Minimum   Death Benefit.	3)  Guaranteed Minimum   Death Benefit.

118

Product Feature	Transamerica Freedom 97 Form Number: – AV339 101 101 497 – AE957 497	Transamerica Freedom 98 Form Number: – AV400 101 107 198 – AE957 497	Transamerica Freedom 98 Form Number: – AV400 101 107 198 – RGMI 1 798
Mortality & Expense Risk Fee and Administrative Charge prior to Annuity Commencement Date	•      1.50% for Return of Premium - first 10 Policy Years •      1.65% for Annual Step-Up - first 10 Policy Years •      1.65% for 5% Compounding - first 10 Policy Years •      0.25% less after First 10 Policy Years	•      1.50% for Return of Premium - first 10 Policy Years •      1.65% for Double Enhanced - first 10 Policy Years •      1.65% for 5% Compounding - first 10 Policy Years •      0.25% less after First 10 Policy Years	•      1.50% for Return of Premium - first 10 Policy Years •      1.65% for Double Enhanced - first 10 Policy Years •      1.65% for 5% Compounding - first 10 Policy Years •      0.25% less after First 10 Policy Years
Is Mortality & Expense Risk Fee and Administrative Charge different after the Annuity Commencement Date?	No	Yes – 1.10% plus Administrative Charge, regardless of death benefit chosen prior to the Annuity Commencement Date.	Yes – 1.10% plus Administrative Charge, regardless of death benefit chosen prior to the Annuity Commencement Date.
Fund Facilitation Fee	No	No	No
Guaranteed Period Options (available in the Fixed Account)	1, 3, and 5 year Guaranteed Periods available.	1, 3, and 5 year Guaranteed Periods available.	1, 3, and 5 year Guaranteed Periods available.
Distribution Financing Charge	Applicable	Applicable	Applicable
Annual Contract Charge (Service Charge)	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary
Optional Riders	•      Taxpayer 2003 •      Taxpayer Plus 2 •      Taxpayer •      Family Income Protector •      Managed Annuity Program •      Managed Annuity Program II •      Living Benefit Rider 2003 •      Living Benefit Rider 2005 •      5 for Life 2005	•      Taxpayer 2003 •      Taxpayer Plus 2 •      Taxpayer •      Family Income Protector •      Managed Annuity Program •      Managed Annuity Program II •      Living Benefit Rider 2003 •      Living Benefit Rider 2005 •      5 for Life 2005	•      Taxpayer 2003 •      Taxpayer Plus 2 •      Taxpayer •      Family Income Protector •      Managed Annuity Program •      Managed Annuity Program II •      Living Benefit Rider 2003 •      Living Benefit Rider 2005 •      5 for Life 2005
Excess Interest Adjustment	Yes	Yes	Yes
Asset Rebalancing	Yes	Yes	Yes
Dollar Cost Averaging Fixed Account Option	Yes	Yes	Yes
Nursing Care and Terminal Condition Withdrawal Option	Yes (by Endorsement AE 957 497)	Yes (by Endorsement AE 957 497)	Yes (by Endorsement AE 957 497)
Unemployment Waiver	N/A	N/A	N/A

119

Product Feature	Transamerica Freedom 2003 Form Number: – AV864 101 165 103	Transamerica Freedom 2006 Form Number: – AV864 101 165 103	Transamerica Freedom 2008 Form Number: – AV864 101 165 103
Guaranteed Minimum Death Benefit Option(s)	A. Modal Double Enhanced -  RGMD 6 0203 B. Modal Annual Step-Up -  RGMD 5 0103 C. Return of Premium -  RGMD 8 0603.	A. Modal Double Enhanced -  RGMD 6 0203 B. Modal Annual Step-Up -  RGMD 5 0103 C. Return of Premium -  RGMD 8 0603	A. Modal Double Enhanced -  RGMD 15 0108 B. Modal Annual Step-Up -  RGMD 5 0103 C. Return of Premium -  RGMD 8 0603
	Option A is available if Owner and Annuitant are both under age 75. Option B is available if Owner and Annuitant are under age 81.	Option A is available if Owner and Annuitant are both under age 76. Option B is available if Owner and Annuitant are under age 81.	Option A is available if Owner and Annuitant are both under age 76. Option B is available if Owner and Annuitant are under age 76.

120

Product Feature	Transamerica Freedom 2003 Form Number: – AV864 101 165 103	Transamerica Freedom 2006 Form Number: – AV864 101 165 103	Transamerica Freedom 2008 Form Number: – AV864 101 165 103
Double Enhanced Death Benefit Designated Funds	N/A	N/A	•      AllianceBernstein Balanced Wealth Strategy Portfolio – Class B
			•      American Funds – Asset Allocation Fund – Class 2
			•      American Funds – Bond Fund – Class 2
			•      Fidelity VIP Balanced Portfolio – Service Class 2
			•      Franklin Templeton VIP Founding Funds Allocation Fund – Class 4
			•      GE Investments Total Return Fund – Class 3
			•      Transamerica Asset Allocation – Conservative VP – Service Class
			•      Transamerica Asset Allocation – Moderate VP – Service Class
			•      Transamerica Asset Allocation – Moderate Growth VP – Service Class
			•      Transamerica International Moderate Growth VP – Service Class
			•      Transamerica Multi-Managed Balanced VP – Service Class
			•      Transamerica BlackRock Global Allocation VP – Service Class
			•      Transamerica BlackRock Tactical Allocation VP – Service Class
			•      Transamerica Efficient Markets VP – Service Class
			•      Transamerica Foxhall Global Conservative VP – Service Class
			•      Transamerica Index 35 VP – Service Class
			•      Transamerica Index 50 VP – Service Class
			•      Transamerica Index 75 VP – Service Class
			•      Transamerica AEGON Money Market VP – Service Class
			•      Transamerica PIMCO Total Return VP – Service Class
			•      Transamerica AEGON U.S. Government Securities VP – Service Class

121

Product Feature	Transamerica Freedom 2003 Form Number: – AV864 101 165 103	Transamerica Freedom 2006 Form Number: – AV864 101 165 103	Transamerica Freedom 2008 Form Number: – AV864 101 165 103
Death Proceeds	Greatest of:	Greatest of:	Greatest of:
	1)  Policy Value 2)  Cash Value 3)  Guaranteed Minimum Death Benefit	1)  Policy Value 2)  Cash Value 3)  Guaranteed Minimum Death Benefit	1)  Policy Value 2)  Cash Value 3)  Guaranteed Minimum Death Benefit
Mortality & Expense Risk Fee and Administrative Charge prior to Annuity Commencement Date	•      1.65% for Return of Premium •      1.85% for Annual Step-Up •      2.15% for Double Enhanced	•      1.60% for Policy Value •      1.70% for Return of Premium •      1.90% for Annual Step-Up •      2.20% for Double Enhanced	•      1.70% for Return of Premium •      1.90% for Annual Step-Up •      2.35% for Double Enhanced
Is Mortality & Expense Risk Fee and Administrative Charge different after the Annuity Commencement Date?	Yes – 1.10% plus Administrative Charge, regardless of death benefit chosen prior to the Annuity Commencement Date.	Yes – 1.10% plus Administrative Charge, regardless of death benefit chosen prior to the Annuity Commencement Date.	Yes – 1.10% plus Administrative Charge, regardless of death benefit chosen prior to the Annuity Commencement Date.
Fund Facilitation Fee	Yes -	Yes -	Yes -
	•      0.30% if you choose American Funds - Asset Allocation Fund, American Funds - Bond Fund, American Funds - Growth Fund, American Funds - Growth-Income Fund, or American Funds - International Fund.	•      0.30% if you choose American Funds - Asset Allocation Fund, American Funds - Bond Fund, American Funds - Growth Fund, American Funds - Growth-Income Fund, or American Funds - International Fund.	•      0.30% if you choose American Funds - Asset Allocation Fund, American Funds - Bond Fund, American Funds - Growth Fund, American Funds - Growth-Income Fund, or American Funds - International Fund.
	•      0.20% if you choose AllianceBernstein Balanced Wealth Strategy Portfolio or GE Investments Total Return Fund. •      0.15% if you choose Franklin Templeton VIP Founding Funds Allocation Fund.	•      0.20% if you choose AllianceBernstein Balanced Wealth Strategy Portfolio or GE Investments Total Return Fund. •      0.15% if you choose Franklin Templeton VIP Founding Funds Allocation Fund.	•      0.20% if you choose AllianceBernstein Balanced Wealth Strategy Portfolio or GE Investments Total Return Fund. •      0.15% if you choose Franklin Templeton VIP Founding Funds Allocation Fund.
	•      0.10% if you choose Transamerica BlackRock Global Allocation VP.	•      0.10% if you choose Transamerica BlackRock Global Allocation VP.	•      0.10% if you choose Transamerica BlackRock Global Allocation VP.
Guaranteed Period Options (available in the Fixed Account)	1, 3, and 5 year Guaranteed Periods available.	1, 3, and 5 year Guaranteed Periods available.	1, 3, 5, and 7 year Guaranteed Periods available.
Distribution Financing Charge	Applicable	Applicable	Applicable
Annual Contract Charge (Service Charge)	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary

122

Product Feature	Transamerica Freedom 2003 Form Number: – AV864 101 165 103	Transamerica Freedom 2006 Form Number: – AV864 101 165 103	Transamerica Freedom 2008 Form Number: – AV864 101 165 103
Optional Riders	•      Taxpayer 2003 •      Taxpayer Plus 2 •      Living Benefit Rider 2003 •      5 for Life 2005 •      Income Select for Life	•      Taxpayer 2003 •      Taxpayer Plus 2 •      Living Benefit Rider 2005 •      5 for Life 2005 •      Income Select for Life •      Retirement Income Choice® •      Retirement Income Choice® 2008 (with Double Withdrawal Base Benefit) •      Retirement Income Choice® 1.2 •      Retirement Income Choice® 1.4 •      Retirement Income MaxSM	•      Taxpayer 2003 •      Taxpayer Plus 2 •      Living Benefit Rider 2005 •      Retirement Income Choice® •      Retirement Income Choice® 2008 (with Double Withdrawal Base Benefit) •      Retirement Income Choice® 1.2 •      Retirement Income Choice® 1.4 •      Income Link® •      Retirement Income MaxSM
Excess Interest Adjustment	Yes	Yes	Yes
Asset Rebalancing	Yes	Yes	Yes
Dollar Cost Averaging Fixed Account Option	Yes	Yes	Yes
Nursing Care and Terminal Condition Withdrawal Option	Yes	Yes	Yes
Unemployment Waiver	Yes	Yes	Yes

123

APPENDIX

EXCESS INTEREST ADJUSTMENT EXAMPLES

Money that you surrender from, transfer out of, or apply to an annuity payment option, from a guaranteed period option of the fixed account before the end of its guaranteed period (the number of years you specified the money would remain in the guaranteed period option) may be subject to an excess interest adjustment (“EIA”). At the time you request a surrender, if interest rates set by the Company have risen since the date of the initial guarantee, the excess interest adjustment will result in a lower cash value. However, if interest rates have fallen since the date of the initial guarantee, the excess interest adjustment will result in a higher cash value.

Excess interest adjustments will not reduce the policy value for a guaranteed period option below the premium payments and transfers to that guaranteed period option, less any prior partial surrenders and transfers from the guaranteed period option, plus interest at the policy’s minimum guaranteed effective annual interest rate. This is referred to as the excess interest adjustment floor.

The formula that will be used to determine the excess interest adjustment is:

S* (G-C)* (M/12)

S	=	Gross amount being surrendered that is subject to the excess interest adjustment
G	=	Guaranteed interest rate in effect for the policy
C	=	Current guaranteed interest rate then being offered on new premiums for the next longer option period than “M”. If this policy form or such an option period is no longer offered, “C” will be the U.S.Treasury rate for the next longer maturity (in whole years) than “M” on the 25th day of the previous calendar month, plus up to 2%.
M	=	Number of months remaining in the current option period, rounded up to the next higher whole number of months.
*	=	multiplication
^	=	exponentiation

The following examples are for illustrative purposes only and ore calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

124

Excess Interest Adjustment Examples — (Continued)

Example 1 (Full Surrender, rates increase by 4%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Surrender:	Middle of policy year 3
Policy value at middle of policy year 3	= 50,000.00 * (1.055) ^ 2.5 = 57,161.18
Adjustment free amount at middle of policy	= 57,161.18 - 50,000 = 7,161.18
year 3
Amount subject to excess interest adjustment	= 57,161.18 – 7,161.18 = 50,000.00
Excess interest adjustment floor	= 50,000.00 * (1.015) ^ 2.5 = 51,896.14
Excess interest adjustment
G = .055
C = .095
M = 30
Excess interest adjustment	= S * (G - C) * (M/12)
	= 50,000.00 * (.055 - .095) * (30/12)
	= -5,000.00, but excess interest adjustment cannot cause the adjusted policy value to fall below the excess interest adjustment floor, so the adjustment is limited to 51,896.14 - 57,161.18 = -5,265.03
Adjusted policy value	= policy value + excess interest adjustment
	= 57,161.18 + (-5,265.03) = 51,896.15
Cash value at middle of policy year 3	= policy value + excess interest adjustment
	= 57,161.18 + (-5,265.03) = 51,896.15

Upon full surrender of the policy, the minimum cash value will never be less than that required by the non-forfeiture laws of your state.

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

125

Excess Interest Adjustment Examples — (Continued)

Example 2 (Full Surrender, rates decrease by 1%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Surrender:	Middle of policy year 3
Policy value at middle of policy year 3	= 50,000.00 * (1.055) ^ 2.5 = 57,161.18
Adjustment free amount at middle of policy	= 57,161.18 – 50,000.00 = 7,161.18
year 3
Amount subject to excess interest adjustment	= 57,161.18 – 7,161.18 = 50,000.00
Excess interest adjustment floor	= 50,000.00 * (1.015) ^ 2.5 = 51,896.14
Excess interest adjustment
G = .055
C = .045
M = 30
Excess interest adjustment	= S * (G - C) * (M/12)
	= 50,000.00 * (.055 - .045) * (30/12) = 1,250.00
Adjusted policy value	= 57,161.18 + 1,250.00 = 58,411.18
Cash value at middle of policy year 3	= policy value + excess interest adjustment
	= 57,161.18 + 1,250.00 = 58,411.18

Upon full surrender of the policy, the minimum cash value will never by less than that required by the non-forfeiture laws of your state.

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

On a partial surrender, the Company will pay the policyholder the full amount of surrender requested (as long as the policy value is sufficient). Amounts surrendered will reduce the policy value by an amount equal to:

R - E

R	=	the requested partial surrender
E	=	the excess interest adjustment

126

Excess Interest Adjustment Examples — (Continued)

Example 3 (Partial Surrender, rates increase by 1%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Partial surrender:	$20,000; middle of policy year 3
Policy value at middle of policy year 3	= 50,000.00 * (1.055) ^ 2.5 = 57,161.18
Adjustment free amount at middle of contract year 3	= 57,161.18 – 50,000.00 = 7,161.18
Excess interest adjustment
S= 20,000 – 7,161.18 = 12,838.82
G= .055
C= .065
M= 30
Excess interest adjustment	= S * (G - C) * (M/12)
	= 12,838.82 * (.055 - .065) * (30/12)
	= - 320.97
Remaining policy value at middle of policy	= 57,161.18 - (R - E)
year 3
	= 57,161.18 - (20,000.00 - (-320.97)) = 36,840.21

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

Example 4 (Partial Surrender, rates decrease by 1%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Partial surrender:	$20,000; middle of policy year 3
Policy value at middle of policy year 3	= 50,000.00 * (1.055) ^ 2.5 = 57,161.18
Adjustment free amount at middle of policy year 3	= 57,161.18 - 50,000.00 = 7,161.18
Excess interest adjustment
S= 20,000 – 7,161.18 = 12,838.82
G= .055
C= .045
M= 30
Excess interest adjustment	= 12,838.82 * (.055 - .045) * (30/12)
	= 320.97
Remaining policy value at middle of policy year 3	= 57,161.18 - (R - E)
	= 57,161.18 - (20,000.00 – 320.97) = 37,482.15

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

127

APPENDIX

DEATH BENEFIT

Adjusted Partial Surrender. If you make a partial surrender (withdrawal), then your guaranteed minimum death benefit is reduced by an amount called the adjusted partial surrender. The amount of the reduction depends on the relationship between your death benefit and policy value. The adjusted partial surrender is equal to (1) multiplied by (2) divided by (3), where:

(1) is the amount of the gross partial surrender;

(2) is the value of the current death proceeds immedicately prior to the gross partial surrender;

(3) is the policy value immediately prior to the gross partial surrender.

The following examples describe the effect of a surrender on the guaranteed minimum death benefit and policy value.

Example 1 (Assumed Facts for Example)

Current guaranteed minimum death benefit before surrender	$	75,000
Current policy value before surrender	$	50,000
Current death proceeds	$	75,000
Total Gross Partial Surrender	$	15,494
Adjusted partial surrender = 15,494 * 75,000 / 50,000	$	23,241
New guaranteed minimum death benefit (after surrender) = 75,000 – 23,241	$	51,759
New policy value (after surrender) = 50,000 – 15,494	$	34,506

Summary:

Reduction in guaranteed minimum death benefit	=  $	23,241
Reduction in policy value	=  $	15,494

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

** The guaranteed minimum death benefit is reduced more than the policy value because the guaranteed minimum death benefit was greater than the policy value just prior to the surrender.

128

Death Benefit – (Continued)

Example 2 (Assumed Facts for Example)

Current guaranteed minimum death benefit before surrender	$	50,000
Current policy value before surrender	$	75,000
Current death proceeds	$	75,000
Total Gross Partial Surrender	$	15,556
Adjusted partial surrender = 15,556 * 75,000 / 75,000	$	15,556
New guaranteed minimum death benefit (after surrender) = 50,000 – 15,556	$	34,444
New policy value (after surrender) = 75,000 – 15,556	$	59,444

Summary:

Reduction in guaranteed minimum death benefit	=  $	15,556
Reduction in policy value	=  $	15,556

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

** The guaranteed minimum death benefit and policy value are reduced by the same amount because the policy value was higher than the guaranteed minimum death benefit just prior to the surrender.

129

Death Benefit — (Continued)

Hypothetical Example

In this example, certain death benefit values at various points in time are depicted based on hypothetical assumed rates of performance. This example is for illustrative purposes only and assumes a single $100,000 premium payment by a sole owner and annuitant who is age 50. It further assumes no subsequent premium payments or withdrawals.

End of Year	Net Rate of Return for Fund*			Return of Premium		Annual Step-Up
Issue		N/A		$	100,000	$	100,000
1		-4	%	$	100,000	$	100,000
2		18	%	$	100,000	$	110,093
3		15	%	$	100,000	$	124,955
4		-7	%	$	100,000	$	124,955
5		2	%	$	100,000	$	124,955
6		10	%	$	100,000	$	124,955
7		14	%	$	100,000	$	140,257
8		-3	%	$	100,000	$	140,257
9		17	%	$	100,000	$	154,706
10		6	%	$	100,000	$	161,668

* The assumed rate does reflect the deduction of a hypothetical fund fee but does not reflect the deduction of any other fees, charges or taxes. The death benefit values do reflect the deduction of hypothetical base policy fees and hypothetical death benefit fees. Different hypothetical returns and fees would produce different results.

130

APPENDIX

ADDITIONAL DEATH DISTRIBUTION RIDER - ADDITIONAL INFORMATION

The following example illustrates the Additional Death Distribution additional death benefit payable by this rider as well as the effect of a partial surrender on the Additional Death Distribution benefit amount. The annuitant is less than age 71 on the Rider Date.

Example 1

Policy Value on the Rider Date:	$	100,000
Premiums paid after the Rider Date before Surrender:	$	25,000
Gross Partial Surrenders after the Rider Date:	$	30,000
Policy Value on date of Surrender:	$	150,000
Rider Earnings on Date of Surrender (Policy Value on date of surrender – Policy Value on Rider Date – Premiums paid after Rider Date + Surrenders since Rider Date that exceeded Rider Earnings = $150,000 – $100,000 – $25,000 + 0):	$	25,000
Amount of Surrender that exceeds Rider Earnings ($30,000 – $25,000):	$	5,000
Base Policy Death Benefit on the date of Death Benefit Calculation:	$	200,000
Policy Value on the date of Death Benefit Calculations:	$	175,000
Rider Earnings (= Policy Value on date of Death Benefit Calculations – policy value on Rider Date – Premiums since Rider Date + Surrenders since Rider Date that exceeded Rider Earnings = $175,000 – $100,000 – $25,000 + $5,000):	$	55,000
Additional Death Benefit Amount (= Additional Death Benefit Factor * Rider Earnings = 40%* $55,000):	$	22,000
Total Death Benefit paid (= Base policy death benefit plus Additional Death Benefit Amount):	$	222,000

Example 2

Policy Value on the Rider Date:	$	100,000
Premiums paid after the Rider Date before Surrender:	$	0
Gross Partial Surrenders after the Rider Date:	$	0
Base Policy Death Benefit on the date of Death Benefit Calculation:	$	100,000
Policy Value on the date of Death Benefit Calculations:	$	75,000
Rider Earnings (= Policy Value on date of death benefit calculations – policy value on Rider Date – Premiums since Rider Date + Surrenders since Rider Date that exceeded Rider Earnings = $75,000 – $100,000 – $0 + $0):	$	0
Additional Death Benefit Amount (= Additional Death Benefit Factor * Rider Earnings = 40%* $0):	$	0
Total Death Benefit paid (= Base policy death benefit plus Additional Death Benefit Amount):	$	100,000

131

APPENDIX

ADDITIONAL DEATH DISTRIBUTION+ RIDER - ADDITIONAL INFORMATION

Assume the Additional Death Distribution+ is added to a new policy opened with $100,000 initial premium. The annuitant is less than age 71 on the Rider Date. On the first and second Rider Anniversaries, the Policy Value is $110,000 and $95,000 respectively when the Rider Fees are deducted. The annuitant adds $25,000 premium in the 3rd Rider Year when the Policy Value is equal to $115,000 and then takes a withdrawal of $35,000 during the 4th Rider Year when the Policy Value is equal to $145,000. After 5 years, the Policy Value is equal to $130,000 and the death proceeds are equal to $145,000.

Example 1

Account Value on Rider Date (equals initial policy value since new policy)	$	100,000
Additional Death Benefit during first Rider Year	$	0
Rider Fee on first Rider Anniversary (= Rider Fee * Policy Value = 0.55% * $110,000)	$	605
Additional Death Benefit during 2nd Rider Year (= sum of total Rider Fees paid)	$	605
Rider Fee on second Rider Anniversary (= Rider Fee * Policy Value = 0.55% * $95,000)	$	522.50
Additional Death Benefit during 3rd Rider Year (= sum of total Rider Fees paid = $605 + $522.50)	$	1,127.50
Rider Benefit Base in 3rd Rider Year prior to Premium addition (= Account Value less premiums added since Rider Date = $115,000 – $0)	$	115,000
Rider Benefit Base in 3rd Rider Year after Premium addition (= $140,000 – $25,000)	$	115,000
Rider Benefit Base in 4th Rider Year prior to withdrawal (= Account Value less premiums added since Rider Date = $145,000 – $25,000)	$	120,000
Rider Benefit Base in 4th Rider Year after withdrawal = (Account Value less premiums added since Rider Date =$110,000 – $25,000)	$	85,000
Rider Benefit Base in 5th Rider Year (= $130,000 – $25,000)	$	105,000
Additional Death Benefit = Rider Benefit Percentage * Rider Benefit Base = 30% * $105,000	$	31,500
Total Death Proceeds in 5th Rider Year (= base policy Death Proceeds + Additional Death Benefit Amount = $145,000 + $31,500)	$	176,500

132

APPENDIX

GUARANTEED LIFETIME WITHDRAWAL BENEFIT COMPARISON TABLE

Important aspects of the Living Benefits Rider, the Retirement Income Choice^® 1.2 Rider, the Income Link^® Rider or the Retirement Income Max^SM Rider are summararized in the following chart.

Note: The Living Benefits Rider, the Retirement Income Choice^® 1.2 Rider, the Income Link^® Rider or the Retirement Income Max^SM Rider and any additional options available under these riders, may vary for certain policies and may not be available for all policies; the Guaranteed Lifetime Withdrawal Benefit Riders may not be available in all states. You should consult with tax and financial professionals to determine which of these riders is appropriate for you.

Living Benefits Rider	Retirement Income Choice® 1.2 Rider	Income Link® Rider	Retirement Income MaxSM Rider
Benefit: •        Provides: (1) Guaranteed Minimum Accumulation Benefit (“GMAB”)—Ten years after you elect the rider (“guaranteed future value date”), your policy value will equal your guaranteed future value (calculated as described below). After that date, the guaranteed future value equals zero. (2) Guaranteed Minimum Withdrawal Benefit (“GMWB”)—a maximum annual withdrawal amount (calculated as described below) regardless of your policy value; we account for withdrawals you take under the rider by applying two different withdrawal guarantees, “principal back,” for withdrawals of up to 7% of your total withdrawal base, or “for life,” for withdrawals up to 5% of your total withdrawal base.	Benefit: •        Provides (1) Guaranteed Lifetime Withdrawal Benefit (“GLWB”)—i.e., a level of cash withdrawals (and payments from us, if necessary) regardless of the performance of the Designated Investment Option or the Open Allocation Option that you select. (2) Growth—On each of the first 10 rider anniversaries, we add an annual growth credit (5% of the withdrawal base immediately before the rider anniversary) to the withdrawal base if no withdrawals have occurred during the preceding rider year. (3) Automatic Step-Up—We will automatically step-up the withdrawal base on each rider anniversary. You can opt out of the automatic step-up if the automatic step-up would result in an increase in the rider fee percentage.	Benefit: •        Provides: (1) Guaranteed Lifetime Withdrawal Benefit (“GLWB”)—i.e., a series of cash withdrawals (and payments from us, if necessary), which are based on a withdrawal percentage that is higher for a defined period and lower thereafter, regardless of the Designated Investment Option that you select. (2) Automatic Step-Up—We will automatically step-up the withdrawal base on each rider anniversary. You can opt out of the automatic step-up if the automatic step-up would result in an increase in the rider fee percentage.	Benefit: •        Provides: (1) Guaranteed Lifetime Withdrawal Benefit (“GLWB”)—i.e., a level of cash withdrawals (and payments from us, if necessary) regardless of the performance of the designated investment choices that you select – if you invest in certain designated investment choices. (2) Growth—On each of the first 10 rider anniversaries, we add an annual growth credit (5% of the withdrawal base immediately before the rider anniversary) to the withdrawal base if no withdrawals have occurred during the preceding rider year. (3) Automatic Step-Up—We will automatically step-up the withdrawal base on each rider anniversary. You can opt out of the automatic step-up if the automatic step-up would result in an increase in the rider fee percentage.

133

Guaranteed Lifetime Withdrawal Benefit Comparison Table — (Continued)

Living Benefits Rider	Retirement Income Choice® 1.2 Rider	Income Link® Rider	Retirement Income MaxSM Rider
•        Upgrades: (1) Before the annuitant’s 86th birthday, you can upgrade the total withdrawal base (for GMWB) and the guaranteed future value (for GMAB) by sending us written notice. (2) If you upgrade, the current rider terminates and a new rider is issued (which may have a higher rider fee).	•        Upgrades: You may request by sending us written notice. If you upgrade, the current rider terminates and a new rider is issued (which may have a higher rider fee). If you have elected the joint life option under the rider, you cannot elect a manual upgrade if the annuitant or an annuitant’s spouse is 86 or older (unless state law requires a lower maximum age).

134

Guaranteed Lifetime Withdrawal Benefit Comparison Table — (Continued)

Living Benefits Rider	Retirement Income Choice® 1.2 Rider	Income Link® Rider	Retirement Income MaxSM Rider
	•        Additional Options: (1) Death Benefit Option— You may add an amount to the death benefit payable under the base policy. (2) Joint Life Option—You may elect to postpone termination of the rider until the later of the death of the annuitant or the death of the annuitant’s spouse. The annuitant’s spouse must be either a joint owner (along with the annuitant) or the sole primary beneficiary (without a joint owner). (3) Income Enhancement Option—If the rider has been in effect for at least 12 months, then you may elect to have your withdrawal percentage double if either the annuitant or the annuitant’s spouse, if the joint life option is elected, is confined in a hospital or nursing facility because of a medical necessity, and has been so confined for an “elimination period” (i.e., 180 days within the last 365 days). You cannot elect this option if the qualifying person(s) is/are already confined in a hospital or nursing facility when the rider is elected. In addition, the increase to the withdrawal percentage stops when the qualifying person(s) is/are no longer confined.	•        Additional Options: (1) Joint Life Option—You may elect to postpone termination of the rider until the later of the death of the annuitant or the death of the annuitant’s spouse. The annuitant’s spouse must be either a joint owner (along with the annuitant) or the sole primary beneficiary (without a joint owner).	•        Additional Options: (1) Joint Life Option—You may elect to postpone termination of the rider until the later of the death of the annuitant or the death of the annuitant’s spouse. The annuitant’s spouse must be either a joint owner (along with the annuitant) or the sole primary beneficiary (without a joint owner).
Availability: •        0 - 80 (unless state law requires a lower maximum issue age	Availability: •        Younger than age 86 (unless state law requires a lower maximum issue age)	Availability: •        At least 55 years old and not yet age 81 (unless state law requires a lower maximum issue age)	Availability: •        Younger than age 86 (unless state law requires a lower maximum issue age)

135

Guaranteed Lifetime Withdrawal Benefit Comparison Table — (Continued)

Living Benefits Rider	Retirement Income Choice® 1.2 Rider	Income Link® Rider	Retirement Income MaxSM Rider
Charge: (1) 0.90% of total withdrawal base on each rider anniversary under the “principal back” withdrawal guarantee under the rider. .	Charges: (1) for Base Benefit only—0.45% to 1.40% annually (single and joint life) of withdrawal base deducted on each rider quarter; (2) Open Investment Option – 1.20% annually (single life and joint life) of withdrawal base deducted on each rider quarter; (3) with Death Benefit Option— 0.25% (single life) or 0.20% (joint life) annually of withdrawal base deducted on each rider quarter, in addition to the base benefit fee; (4) with Income Enhancement Option—0.15% (single life) or 0.30% (joint life) annually of withdrawal base deducted on each rider quarter, in addition to the base benefit fee	Charges: (1) 0.90% annually (single life and joint life) of withdrawal base deducted on each rider quarter.	Charges: (1) 1.00% annually (single life and joint life) of withdrawal base deducted on each rider quarter.
Investment Restrictions: •         Portfolio Allocation Method (“PAM”)—We monitor your policy value and, as we deem necessary to support the guarantees under the rider, may transfer amounts between investment options that we designate and the variable investment choices that you select.	Investment Restrictions: •         Designated Investment option—You must allocate 100% of your policy value to one or more investment options that we designate. •         Open Investment option (“OA”) – We monitor your policy value and, as we deem necessary to support the guarantees under the rider, may transfer amounts between investment options that we designate and the variable investment choices that you select.	Investment Restrictions: •         Designated Investment option—You must allocate 100% of your policy value to one or more investment options that we designate.	Investment Restrictions: •         You must allocate 100% of your policy value to one or more investment options that we designate.

136

APPENDIX

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS

The following examples show the effect of withdrawals on the benefits under the Living Benefits Rider.

GUARANTEED MINIMUM ACCUMULATION BENEFIT

Gross partial withdrawals will reduce the guaranteed future value by an amount equal to the greater of:

1) the gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the amount of gross partial withdrawal;

B is the policy value immediately prior to the gross partial withdrawal; and

C is the guaranteed future value immediately prior to the gross partial withdrawal.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under the guaranteed minimum accumulation benefit.

EXAMPLE 1:

Assumptions:

Policy value prior to withdrawal (“PV”) = $90,000

Guaranteed future value prior to withdrawal (“GFV”) = $100,000

Gross withdrawal amount (“WD”) = $10,000

Step One. What is the pro rata value of the amount withdrawn?

1. Formula is (WD / PV) * GFV = pro rata amount

2. ($10,000 / $90,000) * $100,000 = $11,111.11

Step Two. Which is larger, the $10,000 withdrawal or the $11,111.11 pro rata amount?

$11,111.11 pro rata amount

Step Three. After the withdrawal is taken, what will be new guaranteed future value?

$100,000 - $11,111.11 = $88,888.89

Result. If no more withdrawals are taken, the guaranteed future value on the 10th rider anniversary is $88,888.89.

137

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

EXAMPLE 2:

Assumptions:

PV = $120,000

GFV = $100,000

WD = $10,000

Step One. What is the pro rata value of the amount withdrawn?

1. Formula is (WD / PV) * GFV = pro rata amount

2. ($10,000 / $120,000) * $100,000 = $8,333.33

Step Two. Which is larger, the $10,000 withdrawal or the $8,333.33 pro rata amount?

$10,000 withdrawal

Step Three. After the withdrawal is taken, what will be new guaranteed future value?

$100,000 - $10,000 = $90,000

Result. If no more withdrawals are taken, the guaranteed future value on the 10th Rider Anniversary is $90,000.

GUARANTEED LIFETIME WITHDRAWAL BENEFIT

Total Withdrawal Base. Gross partial withdrawals up to the maximum annual withdrawal amount will not reduce the total withdrawal base. Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the total withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the total withdrawal base prior to the withdrawal of the excess amount.

Minimum Remaining Withdrawal Amount. Gross partial withdrawals up to the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by the same amount (dollar-for-dollar). Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

138

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the minimum remaining withdrawal amount after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under the guaranteed lifetime withdrawal benefit.

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Minimum remaining withdrawal amount (“MRWA”)

2. Total withdrawal base (“TWB”)

3. Maximum annual withdrawal amount (“MAWA”)

EXAMPLE 1 (7% “PRINCIPAL BACK”):

Assumptions:

TWB = $100,000

MRWA = $100,000

7% WD would be $7,000 (7% of the current $100,000 total withdrawal base)

WD = $7,000

Excess withdrawal (“EWD”) = None

PV = $100,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the withdrawal greater than the “principal back” maximum annual withdrawal amount?

No. There is no excess withdrawal under the “principal back” guarantee if no more than $7,000 is withdrawn.

Step Two. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $7,000 (there is no excess to deduct)

2. $100,000 - $7,000 = $93,000.

Result. In this example, because no portion of the withdrawal was in excess of $7,000, the “principal back” total withdrawal base does not change and the “principal back” minimum remaining withdrawal amount is $93,000.00.

EXAMPLE 2 (7% “PRINCIPAL BACK”):

Assumptions:

TWB = $100,000

139

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

MRWA = $100,000

7% WD would be $7,000 (7% of the current $100,000 total withdrawal base)

WD = $8,000

EWD = $1,000 ($8,000 - $7,000)

PV = $90,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the total withdrawal greater than the maximum annual withdrawal amount?

Yes. $8,000 - $7,000 = $1,000 (the excess withdrawal amount)

Step Two. Calculate how much of the “principal back” minimum remaining withdrawal amount is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV - 7% WD)) * (MRWA - 7% WD)

2. ($1,000 / ($90,000 - $7,000)) * ($100,000 - $7,000) = $1,120.48

Step Three. Which is larger, the actual $1,000 excess withdrawal amount or the $1,120.48 pro rata amount?

$1,120.48 pro rata amount

Step Four. What is the “principal back” minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $7,000 + $1,120.48 (pro rata excess) = $8,120.48

2. $100,000 - $8,120.48 = $91,879.52

Result. The “principal back” minimum remaining withdrawal amount is $91,879.52.

NOTE. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the total withdrawal base needs to be adjusted as well as a new lower maximum annual withdrawal amount. Had the withdrawal for this example not been more than $7,000, the “principal back” total withdrawal base would remain at $100,000 and the “principal back” maximum annual withdrawal amount would be $7,000. However, because an excess withdrawal has been taken, the total withdrawal base is also changed (this is the amount the 7% is based on).

New “principal back” total withdrawal base:

Step One. The total withdrawal base is only reduced by the excess withdrawal amount or the pro rata amount if greater.

Step Two. Calculate how much the total withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV - 7% WD)) * TWB before any adjustments

2. ($1,000 / ($90,000 - $7,000)) * $100,000 = $1,204.82

140

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

Step Three. Which is larger, the actual $1,000 excess withdrawal amount or the $1,204.82 pro rata amount?

$1,204.82 pro rata amount.

Step Four. What is the new total withdrawal base upon which the maximum annual withdrawal amount is based?

$100,000 - $1,204.82 = $98,795.18

Result. The new “principal back” total withdrawal base is $98,795.18

New “principal back” maximum annual withdrawal amount:

Because the “principal back” total withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new maximum annual withdrawal amount for the 7% “principal back” guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Step One. What is the new “principal back” maximum annual withdrawal amount?

$98,795.18 (the adjusted total withdrawal base) * 7% = $6,915.66

Result. Going forward, the maximum you can take out in a rider year is $6,915.66 without causing an excess withdrawal for the “principal back” guarantee and further reduction of the “principal back” total withdrawal base.

EXAMPLE 3 (5% “FOR LIFE”):

Assumptions:

TWB = $100,000

MRWA = $100,000

5% WD would be $5,000 (5% of the current $100,000 total withdrawal base)

WD = $5,000

Excess withdrawal (“EWD”) = None

PV = $100,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the withdrawal greater than the “for life” maximum annual withdrawal amount?

No. There is no excess withdrawal under the “for life” guarantee if no more than $5,000 is withdrawn.

Step Two. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $5,000 (there is no excess to deduct).

2. $100,000 - $5,000 = $95,000.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the “for life” total withdrawal base does not change and the “for life” minimum remaining withdrawal amount is $95,000.00.

141

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

EXAMPLE 4 (5% “FOR LIFE”):

Assumptions:

TWB = $100,000

MRWA = $100,000

5% WD would be $5,000 (5% of the current $100,000 total withdrawal base)

WD = $7,000

EWD = $2,000 ($7,000 - $5,000)

PV = $90,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the total withdrawal greater than the maximum annual withdrawal amount?

Yes. $7,000 - $5,000 = $2,000 (the excess withdrawal amount)

Step Two. Calculate how much of the “for life” minimum remaining withdrawal amount is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV - 5% WD)) * (MRWA - 5% WD)

2. ($2,000 / ($90,000 - $5,000)) * ($100,000 - $5,000) = $2,235.29

Step Three. Which is larger, the actual $2,000 excess withdrawal amount or the $2,235.29 pro rata amount?

$2,235.29 pro rata amount

Step Four. What is the “for life” minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $5,000 + $2,235.29 (pro rata excess) = $7,235.29

2. $100,000 - $7,235.29 = $92,764.71

Result. The “for life” minimum remaining withdrawal amount is $92,764.71.

NOTE. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the total withdrawal base needs to be adjusted as well as a new lower maximum annual withdrawal amount. Had the withdrawal for this example not been more than $5,000, the “for life” total withdrawal base would remain at $100,000 and the “for life” maximum annual withdrawal amount would be $5,000. However, because an excess withdrawal has been taken, the total withdrawal base is also changed (this is the amount the 5% is based on).

New “for life” total withdrawal base:

Step One. The total withdrawal base is only reduced by the excess withdrawal amount or the pro rata amount if greater.

142

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

Step Two. Calculate how much the total withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV - 5% WD)) * TWB before any adjustments

2. ($2,000 / ($90,000 - $5,000)) * $100,000 = $2,352.94

Step Three. Which is larger, the actual $2,000 excess withdrawal amount or the $2,352.94 pro rata amount?

$2,352.94 pro rata amount.

Step Four. What is the new total withdrawal base upon which the maximum annual withdrawal amount is based?

$100,000 - $2,352.94 = $97,647.06

Result. The new “for life” total withdrawal base is $97,647.06

New “for life” maximum annual withdrawal amount:

Because the “for life” total withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new maximum annual withdrawal amount for the 5% “for life” guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Step One. What is the new “for life” maximum annual withdrawal amount?

$97,647.06 (the adjusted total withdrawal base) * 5% = $4,882.35

Result. Going forward, the maximum you can take out in a rider year is $4,882.35 without causing an excess withdrawal for the “for life” guarantee and further reduction of the “for life” total withdrawal base.

143

APPENDIX

GUARANTEED LIFETIME WITHDRAWAL BENEFIT

ADJUSTED PARTIAL SURRENDERS - RETIREMENT INCOME CHOICE^® 1.2 RIDER

AND RETIREMENT INCOME CHOICE^® 1.4 RIDER (RETIREMENT INCOME

CHOICE^® 1.4 - NO LONGER AVAILABLE FOR NEW SALES)

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Withdrawal Base (“WB”)

2. Rider Withdrawal Amount (“RWA”)

3. Rider Death Benefit (“RDB”)

Withdrawal Base. Gross partial withdrawals in a rider year up to the rider withdrawal amount will not reduce the withdrawal base. Gross partial withdrawals in a rider year in excess of the rider withdrawal amount will reduce the withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the withdrawal base prior to the withdrawal of the excess amount.

Rider Death Benefit. Gross partial withdrawals in a rider year up to the rider withdrawal amount will reduce the rider death benefit by the amount withdrawn (dollar-for-dollar). Gross partial withdrawals in a rider year in excess of the rider withdrawal amount will reduce the rider death benefit by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the rider death benefit after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under this guaranteed lifetime withdrawal benefit.

Example 1 (Base):

Assumptions:

Withdrawal Base (“WB”) = $100,000

144

Guaranteed Lifetime Withdrawal Benefit — (Continued)

Rider Withdrawal Amount (“RWA”) = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)

Gross partial withdrawal (“GPWD”) = $5,000

Excess withdrawal (“EWD”) = None

Policy Value (“PV”) = $100,000

You = owner and annuitant, age 71 at time withdrawals begin, which means Withdrawal Percentage is 5%.

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee since no more than $5,000 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the withdrawal base does not change.

Example 2 (Excess Withdrawal):

Assumptions:

WB = $100,000

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)

GPWD = $7,000

EWD = $2,000 ($7,000 - $5,000)

PV = $90,000

You = owner and annuitant, age 71 at time withdrawals begin, which means Withdrawal Percentage is 5%.

Result. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $5,000, the withdrawal base would remain at $100,000 and the rider withdrawal amount would be $5,000 starting on the next rider anniversary. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5% is based on).

New withdrawal base:

Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount, if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV - 5% withdrawal)) * WB before any adjustments

2. ($2,000 / ($90,000 - $5,000)) * $100,000 = $2,353

Step Three. Which is larger, the actual $2,000 excess withdrawal or the $2,353 pro rata amount?

$2,353 pro rata amount.

145

Guaranteed Lifetime Withdrawal Benefit — (Continued)

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?

$100,000 - $2,353 = $97,647

Result. The new withdrawal base is $97,647

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Question: What is the new rider withdrawal amount?

$97,647 (the adjusted withdrawal base) * 5% = $4,882

Result. Going forward, the maximum you can take out in a year without causing an excess withdrawal and further reduction of the withdrawal base (assuming there are no future automatic step-ups) is $4,882.

Example 3 (Base demonstrating growth):

Assumptions:

WB = $100,000

Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 8 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 8 = $147,745

RWA = 5% withdrawal beginning 8 years from the rider date would be $7,387 (5% of the then-current $147,745 withdrawal base)

GPWD = $7,387

EWD = None

PV = $90,000 in 8 years

You (if you elected RIC 1.2 or RIC 1.4 ) = owner and annuitant, age 68 on rider issue; age 76 at time withdrawals begin, which means Withdrawal Percentage is 5%

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $7,387 is withdrawn in a rider year.

Result. In this example, because no portion of the withdrawal was in excess of $7,387, the withdrawal base does not change.

146

Guaranteed Lifetime Withdrawal Benefit — (Continued)

Example 4 (Base demonstrating WB growth with Additional Death Payment Option):

Assumptions:

You (if you elected RIC 1.2 or RIC 1.4 ) = owner and annuitant, age 68 on rider issue; age 76 at time withdrawals begin, which means Withdrawal Percentage is 5%

WB at rider issue = $100,000

Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 8 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 8 = $147,745

Rider Death Benefit (“RDB”) (optional additional death benefit for additional cost) = $100,000

RWA = 5% withdrawal beginning 8 years from the rider date would be $7,387 (5% of the then-current $147,745 withdrawal base)

GPWD = $7,387

EWD = None

PV = $90,000 in 8 years

Step One. Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $7,387 is withdrawn.

Step Two. What is the rider death benefit after the withdrawal has been taken?

1. Total to deduct from the rider death benefit is $7,387 (there is no excess to deduct)

2. $100,000 - $7,387 = $92,613.

Result. In this example, because no portion of the withdrawal was in excess of $7,387, the total withdrawal base does not change and the rider death benefit reduces to $92,613.

Example 5 (Base with WB growth with Additional Death Payment Option illustrating excess withdrawal):

Assumptions:

You = owner and annuitant, age 61 on rider issue; age 74 at time withdrawals begin, which means withdrawal percentage is 5%.

WB at rider issue = $100,000

Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 10 years (assuming an annual growth rate percentage of 5.0%) = the greater of $100,000 * (1 + .05) ^ 10 = $162,889.

RDB (optional additional death benefit for additional cost) = $100,000

RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)

GPWD = $15,000

EWD = $6,856 ($15,000 - $8,144)

PV = $90,000 in 10 years

147

Guaranteed Lifetime Withdrawal Benefit — (Continued)

Step One. Is any portion of the total withdrawal greater than the rider withdrawal amount?

Yes. $15,000 – $8,144 = $6,856 (the excess withdrawal amount)

Step Two. Calculate how much of the rider death benefit is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV - 5% withdrawal)) * (RDB - 5% withdrawal)

2. ($6,856 / ($90,000 - $8,144)) * ($100,000 - $8,144) = $7,694

Step Three. Which is larger, the actual $6,856 excess withdrawal amount or the $7,694 pro rata amount?

$7,694 pro rata amount.

Step Four. What is the rider death benefit after the withdrawal has been taken?

1. Total to deduct from the rider death benefit is $8,144 (RWA) + $7,694 (pro rata excess) = $15,838

2. $100,000 - $15,838 = $84,162.

Result. The rider benefit is $84,162.

Note: Because there was an excess withdrawal amount in this example, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $8,144, the withdrawal base would remain at $162,889 and the rider withdrawal amount would be $8,144. However, because an excess withdrawal has been taken, the withdrawal base is also reduced.

New benefit base:

Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD/(PV - 5% withdrawal)) * WB before any adjustments

2. ($6,856 / ($90,000 - $8,144)) * $162,889 = $13,643

Step Three. Which is larger, the actual $6,856 excess withdrawal amount or the $13,643 pro rata amount?

$13,643 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?

$162,889 - $13,643 = $149,246

Result. The new benefit base is $149,246

148

Guaranteed Lifetime Withdrawal Benefit — (Continued)

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% benefit percentage guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Step One. What is the new rider withdrawal amount?

$149,246 (the adjusted withdrawal base) * 5% = $7,462

Result. Going forward, the maximum you can take out in a year without causing an excess withdrawal and further reduction of the benefit base is $7,462.

149

APPENDIX

GUARANTEED LIFETIME WITHDRAWAL BENEFIT

ADJUSTED PARTIAL SURRENDERS - INCOME LINK^® RIDER

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Withdrawal Base (“WB”)

2. Rider Withdrawal Amount (“RWA”)

3. Income Link^® Rider Systematic Withdrawals (“ILSW”)

Withdrawal Base. Income Link^® rider systematic withdrawals (and certain minimum required distributions) will not reduce the withdrawal base. Non-Income Link^® rider systematic withdrawals (and minimum required distributions calculated other than as provided for in the rider or not taken via a systematic withdrawal program) will reduce the withdrawal base by an amount equal to the greater of:

1) the amount of the non-Income Link^® rider systematic withdrawal (or non-qualifying minimum required distribution); and

2) a pro rata amount, the result of (A / B) * C, where:

A is the amount in 1 above;

B is the policy value prior to the withdrawal; and

C is the withdrawal base prior to the withdrawal.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under this guaranteed lifetime withdrawal benefit.

Assumptions:

WB = $100,000

RWA = 6% withdrawal would be $6,000 (6% of the current $100,000 withdrawal base)

ILSW = $500 per month

Non-ILSW = $10,000 (taken after the eighteenth monthly Income Link^® rider systematic withdrawal)

PV = $90,000

Assumes single life withdrawal option of 6% for 6 years and 4% thereafter has been elected. Non-Income Link^® rider systematic withdrawal occurs during the second Income Link^® rider withdrawal year (which means the withdrawal percentage is 6%).

Result. For the guaranteed lifetime withdrawal benefit, because there was a non-Income Link^® rider systematic withdrawal, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount and Income Link^® rider systematic withdrawal amount calculated.

New withdrawal base:

Step One. The withdrawal base is reduced only by the amount of the amount of the non-Income Link^® rider systematic withdrawal or the pro rata amount, if greater.

150

Guaranteed Lifetime Withdrawal Benefit — (Continued)

Step Two. Calculate how much the withdrawal base is affected by the non-Income Link^® rider systematic withdrawal.

1. The formula is (Non-ILSW / (PV before withdrawal)) * WB before any adjustments

2. ($10,000 / ($90,000)) * $100,000 = $11,111

Step Three. Which is larger, the actual $10,000 non-Income Link^® rider systematic withdrawal or the $11,111 pro rata amount?

$11,111 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?

$100,000 - $11,111 = $88,889

Result. The new withdrawal base is $88,889. Please note the percentage reduction in the withdrawal base is used in calculating the revised RWA and ILSW.

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the non-Income Link^® rider systematic withdrawal) we have to calculate a new (remaining) rider withdrawal amount. This calculation assumes no more non-Income Link^® rider systematic withdrawal activity prior to the next Income Link^® rider withdrawal year.

Question: What is the new (remaining) rider withdrawal amount for the remainder of the Income Link^® rider withdrawal year?

$3,000 (the remaining rider withdrawal amount) - ($3000*11.11%) = $2,667

Result. Going forward, the maximum you can take out in a benefit year without causing a negative withdrawal base adjustment and further reduction of the withdrawal base (assuming there are no future automatic step-ups) is $5,333.

New Income Link^® rider systematic withdrawal amount:

Because the withdrawal base was adjusted (due to the non-Income Link^® rider systematic withdrawal) we have to calculate a new Income Link^® rider systematic withdrawal amount. This calculation assumes no more non-Income Link^® rider systematic withdrawal activity prior to the next Income Link^® rider withdrawal year.

Question: What is the new Income Link^® rider systematic withdrawal amount?

$500 (the old Income Link^® rider systematic withdrawal amount) - ($500*11.11%) = $444

Result. Going forward (until the seventh Income Link^® rider withdrawal year), the Income Link^® rider systematic withdrawal amount (assuming there are no future automatic step-ups) is $444

151

APPENDIX

GUARANTEED LIFETIME WITHDRAWAL BENEFIT

ADJUSTED PARTIAL SURRENDERS - RETIREMENT INCOME MAX^SM RIDER

When a withdrawal is taken, the following parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Withdrawal Base (“WB”)

2. Rider Withdrawal Amount (“RWA”)

Withdrawal Base. Gross partial withdrawals in a rider year up to the rider withdrawal amount will not reduce the withdrawal base. Gross partial withdrawals in a rider year in excess of the rider withdrawal amount will reduce the withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the rider withdrawal amount remaining prior to the withdrawal);

B is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the withdrawal base prior to the withdrawal of the excess amount.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under this guaranteed lifetime withdrawal benefit.

Example 1 (Base):

Assumptions:

Withdrawal Base (“WB”) = $100,000

Rider Withdrawal Amount (“RWA”) = 5.5% withdrawal would be $5,500 (5.5% of the current $100,000 withdrawal base)

Gross partial withdrawal (“GPWD”) = $5,500

Excess withdrawal (“EWD”) = None

Policy Value (“PV”) = $100,000 (PV after GPWD = $94,500)

You = owner and annuitant, age 71 at time withdrawals begin, which means Withdrawal Percentage is 5.5% .

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee since no more than $5,500 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $5,500, the withdrawal base does not change.

152

Example 2 (Excess Withdrawal):

Assumptions:

WB = $100,000

RWA = 5.5% withdrawal would be $5,500 (5.5% of the current $100,000 withdrawal base)

GPWD = $7,000

EWD = $1,500 ($7,000 - $5,500)

PV = $90,000

You = owner and annuitant, age 71 at time withdrawals begin, which means Withdrawal Percentage is 5.5% .

Result. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $5,500, the withdrawal base would remain at $100,000 and the rider withdrawal amount would be $5,500 starting on the next rider anniversary. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5.5% is based on).

New withdrawal base:

Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount, if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV - 5.5% withdrawal)) * WB before any adjustments

2. ($1,500 / ($90,000 - $5,500)) * $100,000 = $1,775

Step Three. Which is larger, the actual $1,500 excess withdrawal or the $1,775 pro rata amount?

$1,775 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?

$100,000 - $1,775 = $98,225

Result. The new withdrawal base is $98,225

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5.5% guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Question: What is the new rider withdrawal amount?

$98,225 (the adjusted withdrawal base) * 5.5% = $5,402.38

Result. Going forward, the maximum you can take out in a year without causing an excess withdrawal and further reduction of the withdrawal base (assuming there are no future automatic step-ups) is $5,402.38.

153

Example 3 (Base demonstrating growth):

Assumptions:

WB = $100,000

Automatic step-up never occurs and no withdrawals are taken.

WB in 8 years (assuming an annual growth rate percentage of 5%) = $100,000 * (1 + .05) ^ 8 = $147,746

RWA = 5.5% withdrawal beginning 8 years from the rider date would be $8,126 (5.5% of the then-current $147,746 withdrawal base)

GPWD = $8,126

EWD = None

PV = $90,000 in 8 years

You = owner and annuitant, age 63 on rider issue; age 71 at time withdrawals begin, which means Withdrawal Percentage is 5.5% .

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $8,126 is withdrawn in a rider year.

Result. In this example, because no portion of the withdrawal was in excess of $8,126, the withdrawal base does not change.

Example 4 (Minimum Required Distribution “MRD”):

WB = $100,000

Automatic Step-up and growth never occur.

RWA for rider year beginning July 1, 2010 = 5.5% withdrawal would be $5,500 (5.5% of the current $100,000 withdrawal base.

MRD for 2010 = $6,000 (calculated as set forth in the rider)

MRD for 2011 = $6,500 (calculated as set forth in the rider)

GPWD on February 1, 2011 = $6,500

EWD = $500

Question: Is any portion of the withdrawal greater than the rider withdrawal amount or the minimum required withdrawal calculated pursuant to the terms of the rider?

Yes. Because more than $6,000 (the greater of the RWA ($5,500) or MRD for the tax year on that rider anniversary ($6,000) was withdrawn, there is an excess withdrawal of $500 (6,500–6,000 = 500). Please note, even though the withdrawal occurred in 2011, the MRD for 2011 does not become part of the RWA calculation until July 1, 2011 (the rider anniversary during that tax year).

Result: Because there was an excess withdrawal amount, the withdrawal base needs to be adjusted and a new lower withdrawal amount calculated. See Example 2 (Excess Withdrawal) for an example of how the new withdrawal base and new rider withdrawal amount are calculated.

154

APPENDIX

HYPOTHETICAL EXAMPLE OF THE WITHDRAWAL BASE CALCULATION -

RETIREMENT INCOME MAX^SM RIDER

The following table demonstrates, on a purely hypothetical basis, the withdrawal base calculation for the Retirement Income Max^SM rider using an initial premium payment of $100,000 for a Single Life Option rider at an issue age of 80. All values shown are post transaction values.

Rider Year	Hypothetical Policy Value		Subsequent Premium Payment		Withdrawal		Excess WB Adjustment		Growth Amount		High Monthiversary Value		Withdrawal Base			Rider Withdrawal Amount
	$	100,000	$		$		$		$		$	100,000	$	100,000		$	6,500
1	$	102,000	$		$		$		$		$	102,000	$	100,000		$	6,500
1	$	105,060	$		$		$		$		$	105,060	$	100,000		$	6,500
1	$	107,161	$		$		$		$		$	107,161	$	100,000		$	6,500
1	$	110,376	$		$		$		$		$	110,376	$	100,000		$	6,500
1	$	112,584	$		$		$		$		$	112,584	$	100,000		$	6,500
1	$	115,961	$		$		$		$		$	115,961	$	100,000		$	6,500
1	$	118,280	$		$		$		$		$	118,280	$	100,000		$	6,500
1	$	121,829	$		$		$		$		$	121,829	$	100,000		$	6,500
1	$	124,265	$		$		$		$		$	124,265	$	100,000		$	6,500
1	$	120,537	$		$		$		$		$	124,265	$	100,000		$	6,500
1	$	115,716	$		$		$		$		$	124,265	$	100,000		$	6,500
1	$	109,930	$		$		$		$	105,000	$	124,265	$	124,265	1	$	8,077
2	$	112,129	$		$		$		$		$	112,129	$	124,265		$	8,077
2	$	115,492	$		$		$		$		$	115,492	$	124,265		$	8,077
2	$	117,802	$		$		$		$		$	117,802	$	124,265		$	8,077
2	$	121,336	$		$		$		$		$	121,336	$	124,265		$	8,077
2	$	124,976	$		$		$		$		$	124,976	$	124,265		$	8,077
2	$	177,476	$	50,000	$		$		$		$	177,476	$	174,265		$	11,327
2	$	175,701	$		$		$		$		$	177,476	$	174,265		$	11,327
2	$	172,187	$		$		$		$		$	177,476	$	174,265		$	11,327
2	$	167,022	$		$		$		$		$	177,476	$	174,265		$	11,327
2	$	163,681	$		$		$		$		$	177,476	$	174,265		$	11,327
2	$	166,955	$		$		$		$		$	177,476	$	174,265		$	11,327
2	$	170,294	$		$		$		$	182,979	$	177,476	$	182,979	2	$	11,894
3	$	166,888	$		$		$		$		$	166,888	$	182,979		$	11,894
3	$	171,895	$		$		$		$		$	171,895	$	182,979		$	11,894
3	$	173,614	$		$		$		$		$	173,614	$	182,979		$	11,894
3	$	178,822	$		$		$		$		$	178,822	$	182,979		$	11,894
3	$	175,246	$		$		$		$		$	178,822	$	182,979		$	11,894
3	$	151,741	$		$	20,000	$	9,279	$		$		$	173,699		$
3	$	154,775	$		$		$		$		$		$	173,699		$
3	$	159,419	$		$		$		$		$		$	173,699		$

155

Rider Year	Hypothetical Policy Value		Subsequent Premium Payment	Withdrawal	Excess WB Adjustment	Growth Amount	High Monthiversary Value	Withdrawal Base			Rider Withdrawal Amount
3	$	161,013	$	$	$	$	$	$	173,699		$
3	$	165,843	$	$	$	$	$	$	173,699		$
3	$	174,135	$	$	$	$	$	$	173,699		$
3	$	181,101	$	$	$	$	$	$	181,101	1	$	11,772

(1) Automatic Step Up Applied

(2) Growth Applied

156

TRANSAMERICA FREEDOM^SM VARIABLE ANNUITY

Issued by

TRANSAMERICA LIFE INSURANCE COMPANY

Supplement Dated May 1, 2011

to the

Prospectus dated May 1, 2011

We will not accept any premium payment that is allocated to the fixed account or the dollar cost averaging fixed account in excess of $5,000. We also will not accept any premium payment or transfer which would result in the aggregate policy value in the fixed account and the dollar cost averaging fixed account exceeding $5,000.

This Prospectus Supplement must be accompanied or preceded

by the Prospectus for the

Transamerica Freedom^SM Variable Annuity dated May 1, 2011

TRANSAMERICA FREEDOM^SM VARIABLE ANNUITY

Issued by

TRANSAMERICA LIFE INSURANCE COMPANY

Supplement Dated May 1, 2011

to the

Prospectus dated May 1, 2011

Some selling firms discourage their clients from purchasing certain optional benefits based solely on the client's age. You should work with your registered representative to decide whether an optional benefit is appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance.

This Prospectus Supplement must be accompanied or preceded

by the Prospectus for the

Transamerica Freedom^SM Variable Annuity dated May 1, 2011

STATEMENT OF ADDITIONAL INFORMATION

TRANSAMERICA FREEDOM^SM VARIABLE ANNUITY

Issued through

SEPARATE ACCOUNT VA B

Offered by

TRANSAMERICA LIFE INSURANCE COMPANY

This Statement of Additional Information expands upon subjects discussed in the current prospectus for the Transamerica Freedom^SM Variable Annuity offered by Transamerica Life Insurance Company. You may obtain a copy of the current prospectus, dated May 1, 2011, by calling (800) 525-6205, or write us at: Transamerica Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001. The prospectus sets forth information that a prospective investor should know before investing in a policy. Terms used in the current prospectus for the policy are incorporated in this Statement of Additional Information.

This Statement of Additional Information (SAI) is not a prospectus and should be read only in conjunction with the prospectuses for the policy and the underlying fund portfolios.

Dated: May 1, 2011

TABLE OF CONTENTS

GLOSSARY OF TERMS	3
THE POLICY — GENERAL PROVISIONS	6
Owner	6
Entire Policy	6
Misstatement of Age or Sex	7
Reallocation of Annuity Units After the Annuity Commencement Date	7
Annuity Payment Options	7
Death Benefit	8
Death of Owner	9
Assignment	9
Evidence of Survival	9
Non-Participating	9
Amendments	9
Employee and Agent Purchases	10
Present Value of Future Variable Payments	10
Stabilized Payments	10
CERTAIN FEDERAL INCOME TAX CONSEQUENCES	11
Tax Status of the Policy	11
Taxation of Annuities	12
Taxation of the Company	15
INVESTMENT EXPERIENCE	15
Accumulation Units	15
Annuity Unit Value and Annuity Payment Rates	17
HISTORICAL PERFORMANCE DATA	19
Money Market Yields	19
Total Returns	21
Other Performance Data	21
Adjusted Historical Performance Data	21
PUBLISHED RATINGS	22
STATE REGULATION OF TRANSAMERICA LIFE INSURANCE COMPANY	22
ADMINISTRATION	22
RECORDS AND REPORTS	22
DISTRIBUTION OF THE POLICIES	23
VOTING RIGHTS	23
OTHER PRODUCTS	24
CUSTODY OF ASSETS	24
LEGAL MATTERS	24
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	24
OTHER INFORMATION	25
FINANCIAL STATEMENTS	25
APPENDIX
CONDENSED FINANCIAL INFORMATION	26
APPENDIX
OA METHOD TRANSFERS	89
APPENDIX
PAM METHOD TRANSFERS	94

2

GLOSSARY OF TERMS

Accumulation Unit — An accounting unit of measure used in calculating the policy value in the separate account before the annuity commencement date.

Adjusted Policy Value — The policy value increased or decreased by any excess interest adjustment.

Administrative and Service Office — Transamerica Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001, (800) 525-6205.

Annuitant — The person on whose life any annuity payments involving life contingencies will be based.

Annuity Commencement Date — The date upon which annuity payments are to commence. This date may be any date after the policy date and may not be later than the last day of the policy month following the month after the annuitant attains age 95. The earliest annuity commencement date is at least thirty days after you purchase your policy. The annuity commencement date may have to be earlier for qualified policies and may be earlier if required by state law.

Annuity Payment Option — A method of receiving a stream of annuity payments selected by the owner.

Annuity Unit — An accounting unit of measure used in the calculation of the amount of the second and each subsequent variable annuity payment.

Assumed Investment Return or AIR — The annual effective rate shown in the contract specifications section of the contract that is used in the calculation of each variable annuity payment.

Beneficiary — The person who has the right to the death benefit as set forth in the policy.

Business Day — A day when the New York Stock Exchange is open for regular trading.

Cash Value — The adjusted policy value less any rider fees (imposed upon surrender).

Code — The Internal Revenue Code of 1986, as amended.

Enrollment form — A written application, order form, or any other information received electronically or otherwise upon which the policy is issued and/or is reflected on the data or specifications page.

Excess Interest Adjustment — A positive or negative adjustment to amounts surrendered (both partial or full surrenders and transfers) or applied to annuity payment options from the fixed account guaranteed period options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by the Company since the date any payment was received by, or an amount was transferred to, the guaranteed period option. The excess interest adjustment can either decrease or increase the amount to be received by the owner upon full surrender or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively.

Fixed Account — One or more investment choices under the policy that are part of the Company’s general assets and are not in the separate account.

3

Free Amount — The amount that can be withdrawn each year without incurring any excess interest adjustment.

Guaranteed Lifetime Withdrawal Benefit — Any optional benefit under the policy that provides a guaranteed minimum withdrawal benefit, including Living Benefits Rider, the Retirement Income Choice^® 1.2 Rider, the Income Link^® Rider or the Retirement Income Max^SM Rider

Guaranteed Period Options — The various guaranteed interest rate periods of the fixed account which the Company may offer and into which premium payments may be paid or amounts transferred.

Nonqualified Policy — A policy other than a qualified policy.

Owner (You, Your) — The person who may exercise all rights and privileges under the policy. The owner during the lifetime of the annuitant and prior to the annuity commencement date is the person designated as the owner in the information provided to us to issue a policy.

Policy Date — The date shown on the policy data page attached to the policy and the date on which the policy becomes effective.

Policy Value — On or before the annuity commencement date, the policy value is equal to the owner’s:

• premium payments; minus

• gross partial surrenders (partial surrenders minus excess interest adjustments); plus

• interest credited in the fixed account; plus

• accumulated gains in the separate account; minus

• accumulated losses in the separate account; minus

• service charges, rider fees, premium taxes, transfer fees, and other charges, if any.

Policy Year — A policy year begins on the policy date and on each anniversary thereof.

Premium Payment — An amount paid to the Company by the owner or on the owner’s behalf as consideration for the benefits provided by the policy.

Qualified Policy — A policy issued in connection with retirement plans that qualify for special federal income tax treatment under the Code.

Separate Account — Separate Account VA B, a separate account established and registered as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”), to which premium payments under the policies may be allocated.

Separate Account Value — The portion of the policy value that is invested in the separate account.

Service Charge — An annual charge on each policy anniversary (and a charge at the time of surrender during any policy year) for policy maintenance and related administrative expenses. This annual charge is $35, but will not exceed 2% of the policy value.

Subaccount — A subdivision within the separate account, the assets of which are invested in a specified underlying fund portfolios.

4

Supportable Payment — The amount equal to the sum of the variable annuity unit values multiplied by the number of variable annuity units in each of the selected subaccounts.

Valuation Period — The period of time from one determination of accumulation unit values and annuity unit values to the next subsequent determination of values. Such determination shall be made on each business day.

Variable Annuity Payments — Payments made pursuant to an annuity payment option which fluctuate as to dollar amount or payment term in relation to the investment performance of the specified subaccounts within the separate account.

Written Notice — Written notice, signed by the owner, that gives the Company the information it requires and is received at the administrative and service office. For some transactions, the Company may accept an electronic notice, such as telephone instructions, instead of written notice. Such written or electronic notice must meet the requirements the Company establishes for such notices.

5

In order to supplement the description in the prospectus, the following provides additional information about Transamerica Life Insurance Company (the Company, we, us or our) and the policy, which may be of interest to a prospective purchaser.

THE POLICY — GENERAL PROVISIONS

Owner

The policy shall belong to the owner upon issuance of the policy after completion of an enrollment form and delivery of the initial premium payment. While the annuitant is living, the owner may: (1) assign the policy; (2) surrender the policy; (3) amend or modify the policy with the Company’s consent; (4) receive annuity payments or name a payee to receive the payments; and (5) exercise, receive and enjoy every other right and benefit contained in the policy. The exercise of these rights may be subject to the consent of any assignee or irrevocable beneficiary; and of your spouse in a community or marital property state.

Unless the Company has been notified of a community or marital property interest in the policy, it will rely on its good faith belief that no such interest exists and will assume no responsibility for inquiry.

Note carefully. If the owner predeceases the annuitant and no joint owner, primary beneficiary, or contingent beneficiary is alive or in existence on the date of death, the owner’s estate will become the new owner. If no probate estate is opened because the owner has precluded the opening of a probate estate by means of a trust or other instrument, that trust may not exercise ownership rights to the policy. It may be necessary to open a probate estate in order to exercise ownership rights to the policy.

The owner may change the ownership of the policy in a written notice. When this change takes effect, all rights of ownership in the policy will pass to the new owner. A change of ownership may have tax consequences.

When there is a change of owner, the change will not be effective until it is recorded in our records. Once recorded, it will take effect as of the date the owner signs the written notice, subject to any payment the Company has made or action the Company has taken before recording the change. Changing the owner does not change the designation of the beneficiary or the annuitant.

If ownership is transferred to a new owner (except to the owner’s spouse) because the owner dies before the annuitant, then (a) the cash value generally must be distributed to the new owner within five years of the owner’s death, or (b) annuity payments must be made for a period certain or for the new owner’s lifetime so long as any period certain does not exceed that new owner’s life expectancy, if the first payment begins within one year of your death.

Entire Policy

The policy, any endorsements or riders thereon, the enrollment form, or information provided in lieu thereof, constitute the entire contract between the Company and the owner. All statements in the enrollment form are representations and not warranties. No statement will cause the policy to be void or to be used in defense of a claim unless contained in the enrollment form or information provided in lieu thereof.

6

Misstatement of Age or Sex

If the age or sex of the annuitant or owner has been misstated, the Company will change the annuity benefit payable to that which the premium payments would have purchased for the correct age or sex. The dollar amount of any underpayment made by the Company shall be paid in full with the next payment due such person or the beneficiary. The dollar amount of any overpayment made by the Company due to any misstatement shall be deducted from payments subsequently accruing to such person or beneficiary. Any underpayment or overpayment will include interest at 5% per year, from the date of the wrong payment to the date of the adjustment. The age of the annuitant or owner may be established at any time by the submission of proof satisfactory to the Company.

Reallocation of Annuity Units After the Annuity Commencement Date

After the annuity commencement date, you may reallocate the value of a designated number of annuity units of a subaccount then credited to a policy into an equal value of annuity units of one or more other subaccounts or the fixed account. The reallocation shall be based on the relative value of the annuity units of the account(s) or subaccount(s) at the end of the business day on the next payment date. The minimum amount which may be reallocated is the lesser of (1) $10 of monthly income or (2) the entire monthly income of the annuity units in the account or subaccount from which the transfer is being made. If the monthly income of the annuity units remaining in an account or subaccount after a reallocation is less than $10, the Company reserves the right to include the value of those annuity units as part of the transfer. The request must be in writing to the Company’s administrative and service office. There is no charge assessed in connection with such reallocation. A reallocation of annuity units may be made up to four times in any given policy year.

After the annuity commencement date, no transfers may be made from the fixed account to the separate account.

Annuity Payment Options

Note: Portions of the following discussion do not apply to annuity payments under the Initial Payment Guarantee. See the “Stabilized Payments” section of this SAI.

During the lifetime of the annuitant and before the annuity commencement date, the owner may choose an annuity payment option or change the election, but notice of any election or change of election must be received by the Company in good order at its Administrative and Service Office at least thirty (30) days before the annuity commencement date (elections less than 30 days require prior approval). If no election is made before the annuity commencement date, annuity payments will be made under (1) life income with level (fixed) payments for 10 years certain, using the existing policy value of the fixed account, or (2) life income with variable payments for 10 years certain using the existing policy value of the separate account, or (3) a combination of (1) and (2).

The person who elects an annuity payment option can also name one or more successor payees to receive any unpaid amount the Company has at the death of a payee. Naming these payees cancels any prior choice of a successor payee.

A payee who did not elect the annuity payment option does not have the right to advance or assign payments, take the payments in one sum, or make any other change. However, the payee may be given the right to do one or more of these things if the person who elects the option tells the Company in writing and the Company agrees.

7

Variable Payment Options. The dollar amount of the first variable annuity payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the policy. For annuity payments the tables are based on a 5% effective annual Assumed Investment Return and the “2000 Table”, using an assumed annuity commencement date of 2005 (static projection to this point) with dynamic projection using scale G from that point (100% of G for male, 50% of G for females). The dollar amount of additional variable annuity payments will vary based on the investment performance of the subaccount(s) of the separate account selected by the annuitant or beneficiary.

Determination of the First Variable Payment. The amount of the first variable payment depends upon the sex (if consideration of sex is allowed under state law) and adjusted age of the annuitant. For regular annuity payments, the adjusted age is the annuitant’s actual age nearest birthday, on the annuity commencement date, adjusted as described in your policy. This adjustment assumes an increase in life expectancy, and therefore it results in lower payments than without such an adjustment.

Determination of Additional Variable Payments. All variable annuity payments other than the first are calculated using annuity units which are credited to the policy. The number of annuity units to be credited in respect of a particular subaccount is determined by dividing that portion of the first variable annuity payment attributable to that subaccount by the annuity unit value of that subaccount on the annuity commencement date. The number of annuity units of each particular subaccount credited to the policy then remains fixed, assuming no transfers to or from that subaccount occur. The dollar value of variable annuity units in the chosen subaccount will increase or decrease reflecting the investment experience of the chosen subaccount. The dollar amount of each variable annuity payment after the first may increase, decrease or remain constant. This amount is equal to the sum of the amounts determined by multiplying the number of annuity units of each particular subaccount credited to the policy by the annuity unit value for the particular subaccount on the date the payment is made.

Death Benefit

Due proof of death of the annuitant is proof that the annuitant died prior to the commencement of annuity payments. A certified copy of a death certificate, a certified copy of a decree of a court of competent jurisdiction as to the finding of death, a written statement by the attending physician, or any other proof satisfactory to the Company will constitute due proof of death.

Upon receipt in good order (at our Administrative and Service Office) of this proof and an election of a method of settlement and return of the policy, the death benefit generally will be paid within seven days, or as soon thereafter as the Company has sufficient information about the beneficiary(ies) to make the payment. The beneficiary may receive the amount payable in a lump sum cash benefit, or, subject to any limitation under any state or federal law, rule, or regulation, under one of the annuity payment options described above, unless a settlement agreement is effective at the death of the owner preventing such election.

If an owner is not an annuitant, and dies prior to the annuity commencement date, the new owner may surrender the policy at any time for the amount of the policy value. If the new owner is not the deceased owner’s spouse, however, (1) the policy value must be distributed within five years after the date of the deceased owner’s death, or (2) payments under an annuity payment option must begin no later than one year after the deceased owner’s death and must be made for the new owner’s lifetime or for a period certain (so long as any period certain does not exceed the new owner’s life expectancy). If the sole new owner is the deceased owner’s surviving spouse, such spouse may elect to continue the policy as the new owner instead of receiving the death benefit.

8

Beneficiary. The beneficiary designation in the enrollment form will remain in effect until changed. The owner may change the designated beneficiary by sending written notice to the Company. The beneficiary’s consent to such change is not required unless the beneficiary was irrevocably designated or law requires consent. (If an irrevocable beneficiary dies, the owner may then designate a new beneficiary.) The change will take effect as of the date the owner signs the written notice, whether or not the owner is living when the notice is received by the Company. The Company will not be liable for any payment made before the written notice is received. If more than one beneficiary is designated, and the owner fails to specify their interests, they will share equally. If upon the death of the annuitant there is a surviving owner(s), the surviving owner(s) automatically takes the place of any beneficiary designation.

Death of Owner

Federal tax law requires that if any owner (including any joint owner who has become a current owner) dies before the annuity commencement date, then the entire value of the policy must generally be distributed within five years of the date of death of such owner. Certain rules apply where (1) the spouse of the deceased owner is the sole beneficiary, (2) the owner is not a natural person and the primary annuitant dies or is changed, or (3) any owner dies after the annuity commencement date. See “Certain Federal Income Tax Consequences” for more information about these rules. Other rules may apply to qualified policies.

Assignment

During the lifetime of the annuitant you may assign any rights or benefits provided by the policy if your policy is a nonqualified policy. An assignment will not be binding on the Company until a copy has been filed at its administrative and service office. Your rights and benefits and those of the beneficiary are subject to the rights of the assignee. The Company assumes no responsibility for the validity or effect of any assignment. Any claim made under an assignment shall be subject to proof of interest and the extent of the assignment. An assignment may have tax consequences.

Unless you so direct by filing written notice with the Company, no beneficiary may assign any payments under the policy before they are due. To the extent permitted by law, no payments will be subject to the claims of any beneficiary’s creditors.

Ownership under qualified policies is restricted to comply with the Code.

Evidence of Survival

The Company reserves the right to require satisfactory evidence that a person is alive if a payment is based on that person being alive. No payment will be made until the Company receives such evidence.

Non-Participating

The policy will not share in the Company’s surplus earnings; no dividends will be paid.

Amendments

No change in the policy is valid unless made in writing by the Company and approved by one of the Company’s officers. No registered representative has authority to change or waive any provision of the policy.

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The Company reserves the right to amend the policies to meet the requirements of the Code, regulations or published rulings. You can refuse such a change by giving written notice, but a refusal may result in adverse tax consequences.

Employee and Agent Purchases

The policy may be acquired by an employee or registered representative of any broker/dealer authorized to sell the policy or their immediate family, or by an officer, director, trustee or bona-fide full-time employee of the Company or its affiliated companies or their immediate family. In such a case, the Company in its discretion, may credit an amount equal to a percentage of each premium payment to the policy due to lower acquisition costs the Company experiences on those purchases. The Company may offer certain employer sponsored savings plans, reduced fees and charges including, but not limited to, the annual service charge, the surrender charges, the mortality and expense risk fee and the administrative charge for certain sales under circumstances which may result in savings of certain costs and expenses. In addition, there may be other circumstances of which the Company is not presently aware which could result in reduced sales or distribution expenses. Credits to the policy or reductions in these fees and charges will not be unfairly discriminatory against any owner.

Present Value of Future Variable Payments

The present value of future period certain variable payments is calculated by taking (a) the supportable payment on the business day we receive the surrender request (in good order at our Administrative and Service Office), multiplied by (b) the number of payments remaining, multiplied by a discount rate (such as the assumed investment rate or “AIR”).

Stabilized Payments

If you have selected a payout feature that provides for stabilized payments (e.g., the Initial Payment Guarantee), please note that the stabilized payments remain level throughout each year and are adjusted on your annuitization anniversary. Without stabilized payments, each payment throughout the year would fluctuate based on the performance of your selected subaccounts. To reflect the difference in these payments we adjust (both increase and decrease as appropriate) the number of annuity units. The annuity units are adjusted when we calculate the supportable payment. Supportable payments are used in the calculation of surrender values, death benefits and transfers. On the anniversary of your annuity commencement date we set the new stabilized payment equal to the current supportable payment. In the case of an increase in the number of variable annuity units, your participation in the future investment performance of the subaccounts will be increased because more variable annuity units are credited to you. Conversely, in the case of a reduction of the number of variable annuity units, your participation in the future investment performance of the subaccounts will be decreased because fewer variable annuity units are credited to you. If the Initial Payment Guarantee is chosen, then the stabilized variable annuity payment will equal the greater of the guaranteed payment or the supportable payment at that time.

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The following table demonstrates, on a purely hypothetical basis, the changes in the number of variable annuity units. The changes in the variable annuity unit values reflect the investment performance of the applicable subaccounts as well as the separate account charge.

Hypothetical Changes in Annuity Units with Stabilized Payments*

Assumed Investment Rate	5.0%
Life & 10 Year Certain
Male aged 65
First Variable Payment	$500

		Beginning Annuity Units		Annuity Unit Values		Monthly Payment Without Stabilization		Monthly Stabilized Payment		Adjustments In Annuity Units			Cumulative Adjusted Annuity Units
At Issue:	January 1		400.0000		1.250000	$	500.00	$	500.00		0.0000			400.0000
	February 1		400.0000		1.252005	$	500.80	$	500.00		0.0041			400.0041
	March 1		400.0000		1.252915	$	501.17	$	500.00		0.0059			400.0100
	April 1		400.0000		1.245595	$	498.24	$	500.00		(0.0089	)		400.0011
	May 1		400.0000		1.244616	$	497.85	$	500.00		(0.0108	)		399.9903
	June 1		400.0000		1.239469	$	495.79	$	500.00		(0.0212	)		399.9691
	July 1		400.0000		1.244217	$	497.69	$	500.00		(0.0115	)		399.9576
	August 1		400.0000		1.237483	$	494.99	$	500.00		(0.0249	)		399.9327
	September 1		400.0000		1.242382	$	496.95	$	500.00		(0.0150	)		399.9177
	October 1		400.0000		1.242382	$	496.95	$	500.00		(0.0149	)		399.9027
	November 1		400.0000		1.249210	$	499.68	$	500.00		(0.0016	)		399.9012
	December 1		400.0000		1.252106	$	500.84	$	500.00		0.0040			399.9052
	January 1		399.9052		1.255106	$	501.92	$	501.92		0.0000			399.9052

* The total separate account expenses and portfolio expenses included in the calculations are 2.25% (2.25% is a hypothetical figure). If higher (or lower) expenses were charged, the numbers would be lower (or higher).

CERTAIN FEDERAL INCOME TAX CONSEQUENCES

The following summary does not constitute tax advice. It is a general discussion of certain of the expected federal income tax consequences of investment in and distributions with respect to a policy, based on the Code, Regulations thereunder, judicial authority, and current administrative rulings and practice. This summary discusses only certain federal income tax consequences to “United States Persons,” and does not discuss federal gift, estate or any other state, local, or foreign tax consequences. United States Persons means citizens or residents of the United States, domestic corporations, domestic partnerships and trusts, or estates that are subject to United States federal income tax regardless of the source of their income.

Tax Status of the Policy

Diversification Requirements. Section 817(h) of the Code provides that in order for a non-qualified variable policy which is based on a segregated asset account to qualify as an annuity policy under the Code, the investments made by

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such account must be “adequately diversified” in accordance with Treasury Regulations. The Regulations issued under Section 817(h) (Treas. Reg. Section 1.817-5) apply a diversification requirement to each of the subaccounts. The separate account, through its underlying fund portfolios and their portfolios, intends to comply with the diversification requirements of the Regulations. We have entered into agreements with each underlying fund portfolio company that require the portfolios to be operated in compliance with the Regulations.

Owner Control. In some circumstances, owners of variable policies who retain excessive control over the investment of the underlying separate account assets may be treated as the owners of those assets and may be subject to tax on income produced by those assets. Although there is little guidance in this area and published guidance does not address certain aspects of the policies, we believe that the owner of a policy should not be treated as the owner of the underlying assets. We reserve the right to modify the policies to bring them into conformity with applicable standards should such modification be necessary to prevent owners of the policies from being treated as the owners of the underlying separate account assets.

Distribution Requirements. The Code requires that nonqualified policies contain specific provisions for distribution of policy proceeds upon the death of any owner. In order to be treated as an annuity policy for federal income tax purposes, the Code requires that such policies provide that if any owner dies on or after the annuity commencement date and before the entire interest in the policy has been distributed, the remaining portion must be distributed at least as rapidly as under the method in effect on such owner’s death. If any owner dies before the annuity commencement date, the entire interest in the policy must generally be distributed within 5 years after such owner’s date of death or be used to provide payments to a designated beneficiary beginning within one year of such owner’s death and will be made for the life of the beneficiary or for a period not extending beyond the life expectancy of the beneficiary. However, if upon such owner’s death prior to the annuity commencement date, such owner’s surviving spouse becomes the sole new owner under the policy, then the policy may be continued with the surviving spouse as the new owner. Under the policy, the beneficiary is the person(s) designated by an owner/annuitant and the surviving joint owner is the beneficiary of an owner who is not the annuitant. If any owner is not a natural person, then for purposes of these distribution requirements, the primary annuitant shall be treated as an owner and any death or change of such primary annuitant shall be treated as the death of an owner. The nonqualified policies contain provisions intended to comply with these requirements of the Code. No regulations interpreting these requirements of the Code have yet been issued and thus no assurance can be given that the provisions contained in the policies satisfy all such Code requirements. The provisions contained in the policies will be reviewed and modified if necessary to assure that they comply with the Code requirements when clarified by regulation or otherwise.

The Federal Defense of Marriage Act currently does not recognize same-sex marriages or civil unions, even those that are permitted under individual state laws. Therefore, exercise of the spousal continuation provisions of this policy by persons who do not meet the definition of “spouse” under federal law—e.g., civil union partners and same-sex marriage spouses—may have adverse tax consequences. Consult a tax advisor for more information on this subject.

The following discussion is based on the assumption that the policy qualifies as an annuity policy for federal income tax purposes.

Taxation of Annuities

In General. Code Section 72 governs taxation of annuities in general. We believe that an owner who is an individual will not be taxed on increases in the value of a policy until such amounts are surrendered or distributed. For this purpose, the assignment, pledge, or agreement to assign or pledge any portion of the policy value, and in the case of a qualified policy,

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any portion of an interest in the plan, generally will be treated as a distribution. The taxable portion of a distribution is taxable as ordinary income.

Non-Natural Persons. Pursuant to Section 72(u) of the Code, a nonqualified policy held by a taxpayer other than a natural person generally will not be treated as an annuity policy under the Code; accordingly, an owner who is not a natural person will recognize as ordinary income for a taxable year the excess, if any, of the policy value over the “investment in the contract”. There are some exceptions to this rule and a prospective purchaser of the policy that is not a natural person should discuss these with a competent tax adviser.

Withholding. The portion of any distribution under a policy that is includable in gross income will be subject to federal income tax withholding unless the recipient of such distribution elects not to have federal income tax withheld. Election forms will be provided at the time distributions are requested or made. For certain qualified policies, the withholding rate varies according to the type of distribution and the owner’s tax status. For qualified policies taxable, “eligible rollover distributions” from Section 401(a) plans, Section 403(a) annuities, Section 403(b) tax-sheltered annuities, and governmental 457 plans are subject to a mandatory federal income tax withholding of 20%. An eligible rollover distribution is any distribution from such a plan, other than specified distributions such as distributions required by the Code, distributions in a specified annuity form or hardship distributions. The 20% withholding does not apply, however, to nontaxable distributions or if (i) the employee (or employee’s spouse or former spouse as beneficiary or alternate payee) chooses a “direct rollover” from the plan to a tax-qualified plan, IRA, Roth IRA or tax sheltered annuity or to a governmental 457 plan that agrees to separately account for rollover contributions; or (ii) a non-spouse beneficiary chooses a “direct rollover” from the plan to an IRA established by the direct rollover.

Incidental Death Benefits. The policy may include optional death benefit features, the value of which may exceed the value of the policy or premium payments made under the policy. Federal tax laws limit the value of such incidental death benefit in tax-qualified pension, profit-sharing and 403(b) plans. Further, the Internal Revenue Service has not reviewed this policy for qualification as an IRA, and has not addressed in a ruling of general applicability whether any death benefits available under the policy comport with qualification requirements. The actuarial present value of death benefit options and riders elected may need to be considered in calculating minimum required distributions. Consult a qualified tax adviser before purchasing an optional death benefit.

Qualified Policies. The qualified policy is designed for use with several types of tax-qualified retirement plans. The tax rules applicable to participants and beneficiaries in tax-qualified retirement plans vary according to the type of plan and the terms and conditions of the plan. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from contributions in excess of specified limits, distributions prior to age 59 ¹/2 (subject to certain exceptions), distributions that do not conform to specified commencement and minimum distribution rules, and in other specified circumstances. Some retirement plans are subject to distribution and other requirements that are not incorporated into the policies or our policy administration procedures. Owners, participants, and beneficiaries are responsible for determining that contributions, distributions, and other transactions with respect to the policies comply with applicable law.

For qualified plans under Section 401(a), 403(a), 403(b), and 457, the Code requires that distributions generally must commence no later than the later of April 1 of the calendar year following the calendar year in which the owner (or plan participant) (i) reaches age 70 ¹/2 or (ii) retires, and must be made in a specified form or manner. If a participant in a Section 401(a) plan is a “5 percent owner” (as defined in the Code), or in the case of an IRA (other than a Roth IRA), distributions generally must begin no later than April 1 of the calendar year in which the owner (or plan participant) reaches age 70 ¹/2. Each owner is responsible for requesting distributions under the policy that satisfy applicable tax rules.

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We do not attempt to provide more than general information about use of the policy with the various types of retirement plans. Purchasers of policies for use with any retirement plan should consult their legal counsel and tax adviser regarding the suitability of the policy.

Traditional Individual Retirement Annuities. In order to qualify as a traditional individual retirement annuity under Section 408(b) of the Code, a policy must satisfy certain conditions: (i) the owner must be the annuitant; (ii) the policy generally is not transferable by the owner, e.g., the owner may not designate a new owner, designate a contingent owner or assign the policy as collateral security; (iii) subject to special rules, the total premium payments for any calendar year may not exceed the amount specified in the Code ($5,000 for 2011, $6,000 if age 50 or older), except in the case of a rollover amount or contribution under Section 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) or 457(e)(16) of the Code; (iv) annuity payments or partial surrenders must begin no later than April 1 of the calendar year following the calendar year in which the annuitant attains age 70 ¹/2; (v) an annuity payment option with a period certain that will guarantee annuity payments beyond the life expectancy of the annuitant and the beneficiary may not be selected; (vi) certain payments of death benefits must be made in the event the annuitant dies prior to the distribution of the policy value; (vii) the entire interest of the owner is non-forfeitable; and (viii) the premiums must not be fixed. Policies intended to qualify as traditional individual retirement annuities under Section 408(b) of the Code contain such provisions. Amounts in the IRA (other than nondeductible contributions) are taxed when distributed from the IRA. Distributions prior to age 59 ¹/2 (unless certain exceptions apply) are subject to a 10% penalty tax.

Roth Individual Retirement Annuities (Roth IRA). The Roth IRA, under Section 408A of the Code, contains many of the same provisions as a traditional IRA. However, there are some differences. First, the contributions are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A rollover from or conversion of an IRA to a Roth IRA may be subject to tax. The Roth IRA is available to individuals with earned income and whose modified adjusted gross income is under $120,000 for single filers, $176,000 for married filing jointly, and $10,000 for married filing separately. Subject to special rules, the amount per individual that may be contributed to all IRAs (Roth and traditional) is the deductible amount specified in the Code ($5,000 for 2011, $6,000 if age 50 or older). Secondly, the distributions are taxed differently. The Roth IRA offers tax-free distributions when made 5 tax years after the first contribution to any Roth IRA of the individual and made after attaining age 59 ¹/2, to pay for qualified first time homebuyer expenses (lifetime maximum of $10,000), or due to death or disability. All other distributions are subject to income tax when made from earnings and may be subject to a penalty tax unless an exception applies. Unlike the traditional IRA, there are no minimum required distributions during the owner’s lifetime; however, required distributions at death are generally the same as for traditional IRAs.

Section 403(b) Plans. Under Section 403(b) of the Code, payments made by public school systems and certain tax exempt organizations to purchase policies for their employees are generally excludable from the gross income of the employee, subject to certain limitations. However, such payments may be subject to FICA (Social Security) taxes. The policy includes a death benefit that in some cases may exceed the greater of the premium payments or the policy value. The death benefit could be characterized as an incidental benefit, the amount of which is limited in any tax-sheltered annuity under Section 403(b). Therefore, employers using the policy in connection with such plans should consult their tax adviser. Additionally, in accordance with the requirements of the Code, Section 403(b) annuities generally may not permit distribution of (i) elective contributions made in years beginning after December 31, 1988, and (ii) earnings on those contributions, and (iii) earnings on amounts attributed to elective contributions held as of the end of the last year beginning before January 1, 1989. Distributions of such amounts will be allowed only upon the death of the employee, on or after attainment of age 59 ¹/2, severance from employment, disability, or financial hardship, except that income attributable to elective contributions may not be distributed in the case of hardship. These rules may prevent the payment of guaranteed withdrawals under a guaranteed lifetime withdrawal benefit prior to age 59 ¹/2.

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For policies issued after 2008, amounts attributable to nonelective contributions may be subject to distribution restrictions specified in the employer’s section 403(b) plan.

Pursuant to new tax regulations, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders you request from a 403(b) policy comply with applicable tax requirements before we process your request. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender or transfer, you consent to the sharing of confidential information about you, the policy, and transactions under the policy and any other 403(b) policies or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.

Corporate Pension and Profit-Sharing Plans and H.R. 10 Plans. Sections 401(a) and 403(a) of the Code permit corporate employers to establish various types of retirement plans for employees and self-employed individuals to establish qualified plans for themselves and their employees. Such retirement plans may permit the purchase of the policies to accumulate retirement savings. Adverse tax consequences to the plan, the participant or both may result if the policy is assigned or transferred to any individual as a means to provide benefit payments.

Deferred Compensation Plans. Section 457 of the Code, while not actually providing for a qualified plan as that term is normally used, provides for certain deferred compensation plans with respect to service for state governments, local governments, political subdivisions, agencies, instrumentalities, and certain affiliates of such entities, and tax exempt organizations. The policies can be used with such plans. Under such plans a participant may specify the form of investment in which his or her participation will be made. For non-governmental Section 457 plans, all such investments, however, are owned by, and are subject to, the claims of the general creditors of the sponsoring employer. Depending on the terms of the particular plan, a non-government employer may be entitled to draw on deferred amounts for purposes unrelated to its Section 457 plan obligations. In general, all amounts received under a nongovernmental Section 457 plan are taxable and are subject to federal income tax withholding as wages.

Taxation of the Company

The Company at present is taxed as a life insurance company under part I of Subchapter L of the Code. The separate account is treated as part of the Company and, accordingly, will not be taxed separately as a “regulated investment company” under Subchapter M of the Code. We do not expect to incur any federal income tax liability with respect to investment income and net capital gains arising from the activities of the separate account retained as part of the reserves under the policy. Based on this expectation, it is anticipated that no charges will be made against the separate account for federal income taxes. If, in future years, any federal income taxes are incurred by us with respect to the separate account, we may make a charge to that account.

INVESTMENT EXPERIENCE

A “net investment factor” is used to determine the value of accumulation units and annuity units, and to determine annuity payment rates.

Accumulation Units

Allocations of a premium payment directed to a subaccount are credited in the form of accumulation units. Each subaccount has a distinct accumulation unit value. The number of units credited is determined by dividing the premium

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payment or amount transferred to the subaccount by the accumulation unit value of the subaccount as of the end of the valuation period during which the allocation is made. For each subaccount, the accumulation unit value for a given business day is based on the net asset value of a share of the corresponding portfolio of the underlying fund portfolios less any applicable charges or fees. The investment performance of the portfolio, expenses, and deductions of certain charges affect the value of an accumulation unit.

Upon allocation to the selected subaccount, premium payments are converted into accumulation units of the subaccount. The number of accumulation units to be credited is determined by dividing the dollar amount allocated to each subaccount by the value of an accumulation unit for that subaccount as next determined after the premium payment is received at the administrative and service office or, in the case of the initial premium payment, when the enrollment form is completed, whichever is later. The value of an accumulation unit for each subaccount was arbitrarily established at $1 at the inception of each subaccount. Thereafter, the value of an accumulation unit is determined as of the close of trading on each day the New York Stock Exchange is open for regular trading.

An index (the “net investment factor”) which measures the investment performance of a subaccount during a valuation period, is used to determine the value of an accumulation unit for the next subsequent valuation period. The net investment factor may be greater or less than or equal to one; therefore, the value of an accumulation unit may increase, decrease, or remain the same from one valuation period to the next. You bear this investment risk. The net investment performance of a subaccount and deduction of certain charges affect the accumulation unit value.

The net investment factor for any subaccount for any valuation period is determined by dividing (a) by (b) and subtracting (c) from the result, where:

(a) is the net result of:

(1) the net asset value per share of the shares held in the subaccount determined at the end of the current valuation period, plus

(2) the per share amount of any dividend or capital gain distribution made with respect to the shares held in the subaccount if the ex-dividend date occurs during the current valuation period, plus or minus

(3) a per share credit or charge for any taxes determined by the Company to have resulted during the valuation period from the investment operations of the subaccount;

(b) is the net asset value per share of the shares held in the subaccount determined as of the end of the immediately preceding valuation period; and

(c) is an amount representing the separate account charge and any optional benefit fees, if applicable.

Illustration of Separate Account Accumulation Unit Value Calculations

Formula and Illustration for Determining the Net Investment Factor

Net Investment Factor =	(A + B - C)	- E
	D

Where:
A =	The net asset value of an underlying fund portfolio share as of the end of the current valuation period.
	Assume	A = $11.57

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B =	The per share amount of any dividend or capital gains distribution since the end of the immediately preceding valuation period.
	Assume	B = 0

C =	The per share charge or credit for any taxes reserved for at the end of the current valuation period.
	Assume	C = 0

D =	The net asset value of an underlying fund portfolio share at the end of the immediately preceding valuation period.
	Assume	D = $11.40
E =	The daily deduction for the mortality and expense risk fee and the administrative charge, and any optional benefit fees, if applicable. Assume E totals 2.35% on an annual basis; On a daily basis, this equals 0.000063641.

Then, the net investment factor =	(11.57 + 0 –0)	- 0.000063641 = Z = 1.01484864
	(11.40)

Formula and Illustration for Determining Accumulation Unit Value

Accumulation Unit Value = A * B

Where:
A =	The accumulation unit value for the immediately preceding valuation period.
	Assume = $X

B =	The net investment factor for the current valuation period.
	Assume = Y

Then, the accumulation unit value = $X * Y = $Z

Annuity Unit Value and Annuity Payment Rates

The amount of variable annuity payments will vary with annuity unit values. Annuity unit values rise if the net investment performance of the subaccount exceeds the assumed investment return of 5% annually. Conversely, annuity unit values fall if the net investment performance of the subaccount is less than the annual assumed investment return. The value of a variable annuity unit in each subaccount was established at $1 on the date operations began for that subaccount. The value of a variable annuity unit on any subsequent business day is equal to (a) multiplied by (b) multiplied by (c), where:

(a) is the variable annuity unit value for the subaccount on the immediately preceding business day;

(b) is the net investment factor for that subaccount for the valuation period; and

(c) is the assumed investment return adjustment factor for the valuation period.

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The assumed investment return adjustment factor for the valuation period is the product of discount factors of .99986634 per day to recognize the 5% effective annual assumed investment return. The valuation period is the period from the close of the immediately preceding business day to the close of the current business day.

The net investment factor for the policy used to calculate the value of a variable annuity unit in each subaccount for the valuation period is determined by dividing (i) by (ii) and subtracting (iii) from the result, where:

(i) is the result of:

(1) the net asset value of a fund share held in that subaccount determined at the end of the current valuation period; plus

(2) the per share amount of any dividend or capital gain distributions made by the fund for shares held in that subaccount if the ex-dividend date occurs during the valuation period; plus or minus

(3) a per share charge or credit for any taxes reserved for, which the Company determines to have resulted from the investment operations of the subaccount.

(ii) is the net asset value of a fund share held in that subaccount determined as of the end of the immediately preceding valuation period.

(iii) is a factor representing the mortality and expense risk fee and administrative charge. This factor is equal, on an annual basis, to 1.25% of the daily net asset value of shares held in that subaccount (For calculating Initial Payment Guarantee annuity payments, the factor is higher at a rate of 2.50%).

The dollar amount of subsequent variable annuity payments will depend upon changes in applicable annuity unit values.

The annuity payment rates generally vary according to the annuity option elected and the gender and adjusted age of the annuitant at the annuity commencement date. The policy contains a table for determining the adjusted age of the annuitant.

Illustration of Calculations for Annuity Unit

Value and Variable Annuity Payments

Formula and Illustration for Determining Annuity Unit Value

Annuity Unit Value = A * B * C

Where:
A =	annuity unit value for the immediately preceding valuation period.
	Assume = $X

B =	Net investment factor for the valuation period for which the annuity unit value is being calculated.
	Assume = Y

C =	A factor to neutralize the annual assumed investment return of 5% built into the Annuity Tables used.
	Assume = Z

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Then, the annuity unit value is:

$X * Y * Z = $Q

Formula and Illustration for Determining Amount of

First Monthly Variable Annuity Payment

First monthly variable annuity payment =	A * B
	$1,000

Where:

A =	The adjusted policy value as of the annuity commencement date.
	Assume = $X
B =	The annuity purchase rate per $1,000 of adjusted policy value based upon the option selected, the sex and adjusted age of the annuitant according to the tables contained in the policy.
	Assume = $Y

Then, the first monthly variable annuity payment =	$X * $Y	= $Z
	1,000

Formula and Illustration for Determining the Number of Annuity Units

Represented by Each Monthly Variable Annuity Payment

Number of annuity units =	A
	B

Where:

A =	The dollar amount of the first monthly variable annuity payment.
	Assume = $X
B =	The annuity unit value for the valuation date on which the first monthly payment is due.
	Assume = $Y

Then, the number of annuity units =	$X	= Z
	$Y

HISTORICAL PERFORMANCE DATA

Money Market Yields

The Company may from time to time disclose the current annualized yield of the money market subaccount, which invests in the corresponding money market portfolio, for a 7-day period in a manner which does not take into

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consideration any realized or unrealized gains or losses on shares of the corresponding money market portfolio or on its portfolio securities. This current annualized yield is computed by determining the net change (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) at the end of the 7-day period in the value of a hypothetical account having a balance of 1 unit of the money market subaccount at the beginning of the 7-day period, dividing such net change in account value by the value of the account at the beginning of the period to determine the base period return, and annualizing this quotient on a 365-day basis. The net change in account value reflects (i) net income from the portfolio attributable to the hypothetical account; and (ii) charges and deductions imposed under a policy that are attributable to the hypothetical account. The charges and deductions include the per unit charges for the hypothetical account for (i) the administrative charges and (ii) the mortality and expense risk fee. Current yield will be calculated according to the following formula:

Current Yield = ((NCS * ES)/UV) * (365/7)

Where:

NCS	=	The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of 1 subaccount unit.
ES	=	Per unit expenses of the subaccount for the 7-day period.
UV	=	The unit value on the first day of the 7-day period.

Because of the charges and deductions imposed under a policy, the yield for the money market subaccount will be lower than the yield for the corresponding money market portfolio. The yield calculations do not reflect the effect of any premium taxes.

The Company may also disclose the effective yield of the money market subaccount for the same 7-day period, determined on a compounded basis. The effective yield is calculated by compounding the base period return according to the following formula:

Effective Yield = (1 + ((NCS - ES)/UV))^365/7 - 1

Where:

NCS	=	The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of 1 subaccount unit.
ES	=	Per unit expenses of the subaccount for the 7-day period.
UV	=	The unit value on the first day of the 7-day period.

The yield on amounts held in the money market subaccount normally will fluctuate on a daily basis. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. The money market subaccount’s actual yield is affected by changes in interest rates on money market securities, average portfolio maturity of the corresponding money market portfolio, the types and quality of portfolio securities held by the corresponding money market portfolio and its operating expenses.

20

Total Returns

The Company may from time to time also advertise or disclose total returns for one or more of the subaccounts for various periods of time. One of the periods of time will include the period measured from the date the subaccount commenced operations. When a subaccount has been in operation for 1, 5 and 10 years, respectively, the total return for these periods will be provided. Total returns for other periods of time may from time to time also be disclosed. Total returns represent the average annual compounded rates of return that would equate an initial investment of $1,000 to the redemption value of that investment as of the last day of each of the periods. The ending date for each period for which total return quotations are provided will be for the most recent month end practicable, considering the type and media of the communication and will be stated in the communication.

Total returns will be calculated using subaccount unit values which the Company calculates on each business day based on the performance of the separate account’s underlying fund portfolio and the deductions for the mortality and expense risk fee and the administrative charges. The total return will then be calculated according to the following formula:

P (1 + T)^N = ERV

Where:

T	=	The average annual total return net of subaccount recurring charges.
ERV	=	The ending redeemable value of the hypothetical account at the end of the period.
P	=	A hypothetical initial payment of $1,000.
N	=	The number of years in the period.

Other Performance Data

The Company may from time to time also disclose average annual total returns in a non-standard format in conjunction with the standard format described above. The non-standard format will be identical to the standard format.

The Company may from time to time also disclose cumulative total returns in conjunction with the standard format described above. The cumulative returns will be calculated using the following formula:

CTR = (ERV / P)-1

Where:

CTR	=	The cumulative total return net of subaccount recurring charges for the period.
ERV	=	The ending redeemable value of the hypothetical investment at the end of the period.
P	=	A hypothetical initial payment of $1,000.

All non-standard performance data will only be advertised if the standard performance data is also disclosed.

Adjusted Historical Performance Data

From time to time, sales literature or advertisements may quote average annual total returns for periods prior to the date a particular subaccount commenced operations. Such performance information for the subaccounts will be calculated

21

based on the performance of the various portfolios and the assumption that the subaccounts were in existence for the same periods as those indicated for the portfolios, with the level of policy charges that are currently in effect.

PUBLISHED RATINGS

The Company may from time to time publish in advertisements, sales literature and reports to owners, the ratings and other information assigned to it by one or more independent rating organizations such as A.M. Best Company, Standard & Poor’s Insurance Ratings Services, Moody’s Investors Service and Fitch Financial Ratings. The purpose of the ratings is to reflect the financial strength of the Company. The ratings should not be considered as bearing on the investment performance of assets held in the separate account or of the safety or riskiness of an investment in the separate account. Each year the A.M. Best Company reviews the financial status of thousands of insurers, culminating in the assignment of Best’s Ratings. These ratings reflect their current opinion of the relative financial strength and operating performance of an insurance company in comparison to the norms of the life/health insurance industry. In addition, these ratings may be referred to in advertisements or sales literature or in reports to owners. These ratings are opinions of an operating insurance company’s financial capacity to meet the obligations of its insurance policies in accordance with their terms.

STATE REGULATION OF TRANSAMERICA LIFE INSURANCE COMPANY

The Company is subject to the laws of Iowa governing insurance companies and to regulation by the Iowa Department of Insurance. An annual statement in a prescribed form is filed with the Department of Insurance each year covering the operation of the Company for the preceding year and its financial condition as of the end of such year. Regulation by the Department of Insurance includes periodic examination to determine the Company’s contract liabilities and reserves so that the Department may determine the items are correct. The Company’s books and accounts are subject to review by the Department of Insurance at all times, and a full examination of its operations is conducted periodically by the National Association of Insurance Commissioners. In addition, the Company is subject to regulation under the insurance laws of other jurisdictions in which it may operate.

ADMINISTRATION

The Company performs administrative services for the policies. These services include issuance of the policies, maintenance of records concerning the policies, and certain valuation services.

RECORDS AND REPORTS

All records and accounts relating to the separate account will be maintained by the Company. As presently required by the 1940 Act, as amended, and regulations promulgated thereunder, the Company will mail to all owners at their last known address of record, at least annually, reports containing such information as may be required under that Act or by any other applicable law or regulation. Owners will also receive confirmation of each financial transaction and any other reports required by law or regulation. However, for certain routine transactions (for example, regular monthly premiums deducted from your checking account, or regular annuity payments the Company sends to you) you may only receive quarterly confirmations.

22

DISTRIBUTION OF THE POLICIES

We have entered into a principal underwriting agreement with our affiliate, Transamerica Capital, Inc. (“TCI”), for the distribution and sale of the policies. We may 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.)

TCI’s home office is located at 4600 S Syracuse St. Suite 1100 Denver, Colorado 80237-2719. TCI 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 Financial Industry Regulatory Authority (“FINRA”). TCI is not a member of the Securities Investor Protection Corporation.

We currently offer the policies on a continuous basis. We anticipate continuing to offer the policies, but reserve the right to discontinue the offering. The policies are offered to the public through sales representatives of broker-dealers (“selling firms”) that have entered into selling agreements with us and with TCI. TCI compensates these selling firms for their services. Sales representatives with these selling firms are appointed as our insurance agents.

We and our affiliates provide paid-in capital to TCI and pay for TCI’s operating and other expenses, including overhead, legal and accounting fees. We also pay TCI an “override” payment based on the pricing of the product which becomes part of TCI’s assets. In addition, we pay commission to TCI for policy sales; these commissions are passed through to the selling firms with TCI not retaining any portion of the commissions. During fiscal year 2010, 2009 and 2008 the amounts paid to TCI in connection with all policies sold through the separate account were $9,529,339, $10,063,056, and $9,040,026, respectively.

We and/or TCI or another affiliate 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 of the selling firms. We and/or TCI may make bonus payments to certain selling firms based on aggregate sales or persistency standards. These additional payments are not offered to all selling firms, and the terms of any particular agreement governing the payments may vary among selling firms.

VOTING RIGHTS

To the extent required by law, the Company will vote the underlying fund portfolios’ shares held by the separate account at regular and special shareholder meetings of the underlying fund portfolios in accordance with instructions received from persons having voting interests in the portfolios, although none of the underlying fund portfolios hold regular annual shareholder meetings. If, however, the 1940 Act or any regulation thereunder should be amended or if the present interpretation thereof should change, and as a result the Company determines that it is permitted to vote the underlying fund portfolios shares in its own right, it may elect to do so.

Before the annuity commencement date, you hold the voting interest in the selected portfolios. The number of votes that you have the right to instruct will be calculated separately for each subaccount. The number of votes that you have the right to instruct for a particular subaccount will be determined by dividing your policy value in the subaccount by the net asset value per share of the corresponding portfolio in which the subaccount invests. Fractional shares will be counted.

23

After the annuity commencement date, the person receiving annuity payments has the voting interest, and the number of votes decreases as annuity payments are made and as the reserves for the policy decrease. The person’s number of votes will be determined by dividing the reserve for the policy allocated to the applicable subaccount by the net asset value per share of the corresponding portfolio. Fractional shares will be counted.

The number of votes that you or the person receiving income payments has the right to instruct will be determined as of the date established by the underlying fund portfolio for determining shareholders eligible to vote at the meeting of the underlying fund portfolio. The Company will solicit voting instructions by sending you, or other persons entitled to vote, requests for instructions prior to that meeting in accordance with procedures established by the underlying fund portfolio. Portfolio shares as to which no timely instructions are received, and shares held by the Company in which you, or other persons entitled to vote have no beneficial interest, will be voted in proportion to the voting instructions that are received with respect to all policies participating in the same subaccount.

Each person having a voting interest in a subaccount will receive proxy material, reports, and other materials relating to the appropriate portfolio.

OTHER PRODUCTS

The Company makes other variable annuity policies available that may also be funded through the separate account. These variable annuity policies may have different features, such as different investment choices or charges.

CUSTODY OF ASSETS

The Company holds assets of each of the subaccounts. The assets of each of the subaccounts are segregated and held separate and apart from the assets of the other subaccounts and from the Company’s general account assets. The Company maintains records of all purchases and redemptions of shares of the underlying fund portfolios held by each of the subaccounts. Additional protection for the assets of the separate account is afforded by the Company’s fidelity bond, presently in the amount of $5,000,000, covering the acts of officers and employees of the Company.

LEGAL MATTERS

Sutherland Asbill & Brennan LLP, of Washington D.C. has provided legal advice to the Company regarding to certain matters under the federal securities laws that relate to the policies.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The financial statements of the Separate Account VA B, at December 31, 2010 and for the periods disclosed in the financial statements, and the statutory-basis financial statements and schedules of Transamerica Life Insurance Company at December 31, 2010 and 2009 and for each of the three years in the period ended December 31, 2010, appearing herein, have been audited by Ernst & Young LLP, Suite 3000, 801 Grand Avenue, 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 their reports given on their authority as experts in accounting and auditing.

24

OTHER INFORMATION

A registration statement has been filed with the SEC, under the Securities Act of 1933 as amended, with respect to the policies discussed in this SAI. Not all of the information set forth in the registration statement and the amendments and exhibits thereto has been included in the prospectus or this SAI. Statements contained in the prospectus and this SAI concerning the content of the policies and other legal instruments are intended to be summaries. For a complete statement of the terms of these documents, reference should be made to the instruments filed with the SEC.

FINANCIAL STATEMENTS

The values of your interest in the separate account will be affected solely by the investment results of the selected subaccount(s). Financial statements of certain subaccounts of Separate Account VA B, which are available for investment by Transamerica Freedom^SM Variable Annuity policy owners, are contained herein. The statutory-basis financial statements and schedules of Transamerica Life Insurance Company, which are included in this SAI, should be considered only as bearing on the ability of the Company to meet its obligations under the policies. They should not be considered as bearing on the investment performance of the assets held in the separate account.

25

APPENDIX

CONDENSED FINANCIAL INFORMATION

The accumulation unit values and the number of accumulation units outstanding for each subaccount from the date of inception are shown in the following tables.

	Year		2.35%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation - Conservative VP – Service Class Subaccount Inception Date May 1, 2002		2010	$	0.965395	$	1.025360		4,809.495
		2009	$	0.791064	$	0.965395		36,603.301
		2008	$	1.000000	$	0.791064		25,794.608
Transamerica Asset Allocation - Moderate VP – Service Class Subaccount Inception Date May 1, 2002		2010	$	0.939349	$	1.010826		2,234,645.865
		2009	$	0.761839	$	0.939349		2,310,531.733
		2008	$	1.000000	$	0.761839		404,624.442
Transamerica Asset Allocation - Moderate Growth VP – Service Class Subaccount Inception Date May 1, 2002		2010	$	0.891308	$	0.978872		1,416,892.900
		2009	$	0.713422	$	0.891308		1,603,360.459
		2008	$	1.000000	$	0.713422		1,125,198.796
Transamerica International Moderate Growth VP – Service Class Subaccount Inception Date May 1, 2006		2010	$	0.861942	$	0.928410		940,227.247
		2009	$	0.682134	$	0.861942		908,777.419
		2008	$	1.000000	$	0.682134		462,486.792
Transamerica Foxhall Global Conservative VP – Service Class		2010	$	0.982642	$	0.901562		40,387.231
Subaccount inception date November 19, 2009		2009	$	0.995049	$	0.982642		0.000
Transamerica PIMCO Total Return VP – Service Class		2010	$	1.034332	$	1.080675		126,132.538
Subaccount Inception Date May 1, 2002		2009	$	0.914573	$	1.034332		191,381.210
		2008	$	1.000000	$	0.914573		0.000
Transamerica Efficient Markets VP – Service Class Subaccount Inception Date November 10, 2008		2010	$	1.192580	$	1.309423		50,761.081
		2009	$	1.035634	$	1.192580		2,045.146
		2008	$	1.000000	$	1.035634		0.000
Transamerica Multi-Managed Balanced VP – Service Class(1) Subaccount Inception Date May 1, 2002		2010	$	0.898631	$	1.087704		65,681.892
		2009	$	0.730313	$	0.898631		0.000
		2008	$	1.000000	$	0.730313		0.000
Transamerica AEGON Money Market VP – Service Class(2) Subaccount Inception Date July 5, 1994		2010	$	0.974345	$	0.952007		0.000
		2009	$	0.997130	$	0.974345		410,140.730
		2008	$	1.000000	$	0.997130		499,848.546
Transamerica AEGON U.S. Government Securities VP – Service Class(3) Subaccount Inception Date August 3, 1994		2010	$	1.045079	$	1.064206		0.000
		2009	$	1.026549	$	1.045079		0.000
		2008	$	1.000000	$	1.026549		24,796.039
Transamerica Index 35 VP – Service Class		2010	$	0.997267	$	1.066205		0.000
Subaccount inception date November 19, 2009		2009	$	0.999936	$	0.997267		0.000
Transamerica Index 50 VP – Service Class		2010	$	0.925927	$	1.001395		109,564.307
Subaccount Inception Date May 1, 2008		2009	$	0.813250	$	0.925927		109,564.307
		2008	$	1.000000	$	0.813250		0.000
Transamerica Index 75 VP – Service Class Subaccount Inception Date May 1, 2008		2010	$	0.863815	$	0.953742		85,954.038
		2009	$	0.717740	$	0.863815		112,931.656
		2008	$	1.000000	$	0.717740		25,744.346
AllianceBernstein Balanced Wealth Strategy Portfolio – Class B Subaccount Inception Date November 10, 2008		2010	$	1.227904	$	1.320670		41,033.365
		2009	$	1.011815	$	1.227904		59,166.767
		2008	$	1.000000	$	1.011815		0.000
Fidelity VIP Balanced Portfolio – Service Class 2 Subaccount Inception Date May 1, 2008		2010	$	0.894518	$	1.029180		205,267.207
		2009	$	0.661888	$	0.894518		210,572.384
		2008	$	1.000000	$	0.661888		0.000

26

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.35%
Subaccount			Beginning AUV		Ending AUV		# Units
Franklin Templeton VIP Founding Funds Allocation Fund - Class 4		2010	$	1.255171	$	1.349963		103,889.394
Subaccount Inception Date November 10, 2008		2009	$	0.989162	$	1.255171		56,305.886
		2008	$	1.000000	$	0.989162		0.000
American Funds - Asset Allocation Fund – Class 2		2010	$	1.007176	$	1.103903		58,640.577
Subaccount inception date November 19, 2009		2009	$	0.989759	$	1.007176		0.000
American Funds - Bond Fund – Class 2		2010	$	0.992900	$	1.029604		0.000
Subaccount inception date November 19, 2009		2009	$	1.000880	$	0.992900		0.000
GE Investments Total Return Fund – Class 3		2010	$	1.002820	$	1.069482		0.000
Subaccount inceptiond date November 19, 2009		2009	$	0.988791	$	1.002820		0.000
	Year		2.20%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation - Conservative VP – Service Class		2010	$	1.004220	$	1.068157		481,857.524
Subaccount Inception Date May 1, 2002		2009	$	0.821678	$	1.004220		293,728.261
		2008	$	1.068508	$	0.821678		363,493.084
		2007	$	1.028896	$	1.068508		1,573,755.975
		2006	$	1.000000	$	1.028896		2,143,204.101
Transamerica Asset Allocation - Growth VP – Service Class		2010	$	0.819964	$	0.919857		3,635,043.696
Subaccount Inception Date May 1, 2002		2009	$	0.646892	$	0.819964		4,377,934.086
		2008	$	1.097527	$	0.646892		5,195,878.118
		2007	$	1.043203	$	1.097527		5,036,939.314
		2006	$	1.000000	$	1.043203		1,906,930.691
Transamerica Asset Allocation - Moderate VP – Service Class		2010	$	0.972831	$	1.048391		3,055,463.697
Subaccount Inception Date May 1, 2002		2009	$	0.787834	$	0.972831		3,141,510.807
		2008	$	1.091028	$	0.787834		3,298,802.556
		2007	$	1.035102	$	1.091028		4,569,216.810
		2006	$	1.000000	$	1.035102		3,190,266.680
Transamerica Asset Allocation - Moderate Growth VP – Service Class		2010	$	0.898622	$	0.988358		5,320,818.889
Subaccount Inception Date May 1, 2002		2009	$	0.718227	$	0.898622		6,160,354.935
		2008	$	1.094403	$	0.718227		6,219,743.049
		2007	$	1.039992	$	1.094403		5,561,161.806
		2006	$	1.000000	$	1.039992		1,911,071.352
Transamerica International Moderate Growth VP – Service Class		2010	$	0.858728	$	0.926307		488,434.816
Subaccount Inception Date May 1, 2006		2009	$	0.678604	$	0.858728		536,162.426
		2008	$	1.089131	$	0.678604		790,843.353
		2007	$	1.026078	$	1.089131		1,063,852.301
		2006	$	1.000000	$	1.026078		271,758.683
Transamerica BlackRock Global Allocation VP – Service Class		2010	$	1.197677	$	1.285208		269,439.830
Subaccount inception date May 1, 2009		2009	$	1.000000	$	1.197677		116,933.347
Transamerica BlackRock Large Cap Value VP – Service Class		2010	$	0.777810	$	0.838327		499,350.942
Subaccount Inception Date May 1, 2000		2009	$	0.699058	$	0.777810		389,339.166
		2008	$	1.083638	$	0.699058		148,217.637
		2007	$	1.061455	$	1.083638		388,233.301
		2006	$	1.000000	$	1.061455		0.000
Transamerica BlackRock Tactical Allocation VP – Service Class		2010	$	1.201415	$	1.307733		0.000
Subaccount inception date May 1, 2009		2009	$	1.000000	$	1.201415		0.000

27

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.20%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Clarion Global Real Estate Securities VP – Service Class		2010	$	0.821542	$	0.926856		32,427.720
Subaccount Inception Date May 1, 2002		2009	$	0.631266	$	0.821542		32,769.651
		2008	$	1.122061	$	0.631266		20,620.132
		2007	$	1.231988	$	1.122061		19,937.821
		2006	$	1.000000	$	1.231988		0.000
Transamerica Foxhall Emerging Markets/Pacific Rim VP – Service Class		2010	$	1.008506	$	1.020122		52,610.421
Subaccount inception date November 19, 2009		2009	$	0.990698	$	1.008506		0.000
Transamerica Foxhall Global Conservative VP – Service Class		2010	$	0.982813	$	0.903048		0.000
Subaccount inception date November 19, 2009		2009	$	0.995053	$	0.982813		0.000
Transamerica Foxhall Global Growth VP – Service Class		2010	$	1.005660	$	1.037022		0.000
Subaccount inception date November 19, 2009		2009	$	0.988951	$	1.005660		0.000
Transamerica Foxhall Global Commodities & Hard Asset VP – Service Class(4)		2010	$	0.985042	$	0.993730		52,624.061
Subaccount inception date November 19, 2009		2009	$	0.986556	$	0.985042		0.000
Transamerica Hanlon Balanced VP – Service Class		2010	$	1.019844	$	0.963337		104,821.421
Subaccount inception Date November 19, 2009		2009	$	0.998143	$	1.019844		0.000
Transamerica Hanlon Growth VP – Service Class		2010	$	1.020512	$	0.991502		44,573.959
Subaccount Inception date November 19, 2009		2009	$	0.996382	$	1.020512		0.000
Transamerica Hanlon Growth and Income VP – Service Class		2010	$	1.020512	$	0.978448		0.000
Subaccount inception date November 19, 2009		2009	$	0.997250	$	1.021595		0.000
Transamerica Hanlon Managed Income VP – Service Class		2010	$	1.002869	$	0.982444		131,696.599
Subaccount inception date November 19, 2009		2009	$	0.999940	$	1.002869		0.000
Transamerica JPMorgan Mid Cap Value VP – Service Class		2010	$	1.028818	$	1.236422		0.000
Subaccount inception date November 19, 2009		2009	$	0.985139	$	1.028818		0.000
Transamerica JPMorgan Enhanced Index VP – Service Class		2010	$	0.858510	$	0.964818		45,613.200
Subaccount Inception Date May 1, 1997		2009	$	0.678498	$	0.858510		45,718.456
		2008	$	1.109967	$	0.678498		45,749.882
		2007	$	1.087719	$	1.109967		32,453.027
		2006	$	1.000000	$	1.087719		0.000
Transamerica Jennison Growth VP– Service Class		2010	$	0.924589	$	1.013030		96,620.272
Subaccount Inception Date November 20, 1996		2009	$	0.671651	$	0.924589		35,764.412
		2008	$	1.091552	$	0.671651		3,910.540
		2007	$	1.002625	$	1.091552		3,915.747
		2006	$	1.000000	$	1.002625		0.000
Transamerica Morgan Stanley Capital Growth VP – Service Class(5)		2010	$	0.821415	$	1.021451		57,913.580
Subaccount Inception Date May 1, 2000		2009	$	0.658077	$	0.821415		13,883.091
		2008	$	1.059916	$	0.658077		26,454.857
		2007	$	1.075152	$	1.059916		27,187.635
		2006	$	1.000000	$	1.075152		2,842.029
Transamerica AEGON High Yield Bond VP – Service Class		2010	$	1.100861	$	1.208239		10,787.035
Subaccount Inception Date June 2, 1998		2009	$	0.766090	$	1.100861		47,413.660
		2008	$	1.050501	$	0.766090		10,787.035
		2007	$	1.055504	$	1.050501		0.000
		2006	$	1.000000	$	1.055504		0.000
Transamerica MFS International Equity VP – Service Class		2010	$	0.917981	$	0.990792		95,193.932
Subaccount Inception Date May 1, 2001		2009	$	0.709461	$	0.917981		95,216.484
		2008	$	1.124963	$	0.709461		108,299.751
		2007	$	1.056173	$	1.124963		89,784.879
		2006	$	1.000000	$	1.056173		0.000

28

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.20%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica PIMCO Total Return VP – Service Class		2010	$	1.181738	$	1.236499		233,888.522
Subaccount Inception Date May 1, 2002		2009	$	1.043383	$	1.181738		153,777.837
		2008	$	1.100224	$	1.043383		47,712.577
		2007	$	1.033553	$	1.100224		0.000
		2006	$	1.000000	$	1.033553		0.000
Transamerica T. Rowe Price Small Cap VP – Service Class		2010	$	0.849152	$	1.113883		68,484.751
Subaccount Inception Date May 1, 2000		2009	$	0.627366	$	0.849152		17,614.100
		2008	$	1.008290	$	0.627366		13,717.148
		2007	$	0.943135	$	1.008290		111,651.926
		2006	$	1.000000	$	0.943135		3,149.091
Transamerica WMC Diversified Equity VP – Service Class(6)		2010	$	0.828849	$	0.945221		352,744.776
Subaccount Inception Date May 1, 2000		2009	$	0.662573	$	0.828849		340,951.624
		2008	$	1.205308	$	0.662573		30,170.900
		2007	$	1.071454	$	1.205308		379,588.557
		2006	$	1.000000	$	1.071454		2,852.118
Transamerica Efficient Markets VP - Service Class		2010	$	1.194573	$	1.313547		0.000
Subaccount Inception Date November 10, 2008		2009	$	1.035841	$	1.194573		0.000
		2008	$	1.000000	$	1.035841		0.000
Transamerica Multi-Managed Balanced VP – Service Class(1)		2010	$	0.922028	$	1.117673		46,109.814
Subaccount Inception Date May 1, 2002		2009	$	0.748230	$	0.922028		5,561.455
		2008	$	1.134220	$	0.748230		5,571.693
		2007	$	1.022538	$	1.134220		0.000
		2006	$	1.000000	$	1.022538		0.000
Transamerica AllianceBernstein Dynamic Allocation VP – Service Class(7)		2010	$	0.904570	$	0.966094		36,907.224
Subaccount Inception Date May 1, 2002		2009	$	0.704811	$	0.904570		37,729.323
		2008	$	1.143446	$	0.704811		51,112.315
		2007	$	0.988035	$	1.143446		26,214.820
		2006	$	1.000000	$	0.988035		9,247.845
Transamerica WMC Diversified Growth VP – Service Class		2010	$	0.759470	$	0.873044		220,411.864
Subaccount Inception Date May 1, 2000		2009	$	0.602171	$	0.759470		221,029.047
		2008	$	1.143504	$	0.602171		234,309.589
		2007	$	1.007202	$	1.143504		230,523.398
		2006	$	1.000000	$	1.007202		15,277.502
Transamerica Morgan Stanley Growth Opportunities VP – Service Class(8)		2010	$	0.884251	$	1.170532		8,012.830
Subaccount Inception Date May 1, 2001		2009	$	0.661959	$	0.884251		9,577.885
		2008	$	1.148032	$	0.661959		28,100.634
		2007	$	0.956050	$	1.148032		27,368.535
		2006	$	1.000000	$	0.956050		6,237.915
Transamerica AEGON Money Market VP – Service Class(2)		2010	$	1.019041	$	0.997158		252,275.766
Subaccount Inception Date July 5, 1994		2009	$	1.041332	$	1.019041		927,845.482
		2008	$	1.041763	$	1.041332		2,219,365.276
		2007	$	1.016363	$	1.041763		886,750.385
		2006	$	1.000000	$	1.016363		93,545.393
Transamerica Systematic Small/Mid Cap Value VP – Service Class(9)		2010	$	0.918896	$	1.169323		9,579.076
Subaccount Inception Date July 5, 1994		2009	$	0.657184	$	0.918896		9,579.076
		2008	$	1.000000	$	0.657184		9,579.076
Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010	$	1.147205	$	1.169916		82,842.104
Subaccount Inception Date August 3, 1994		2009	$	1.125215	$	1.147205		5,257.962
		2008	$	1.070646	$	1.125215		200,535.739
		2007	$	1.034510	$	1.070646		0.000
		2006	$	1.000000	$	1.034510		0.000

29

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.20%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Index 35 VP – Service Class		2010	$	0.997437	$	1.067950		0.000
Subaccount inception date November 19, 2009		2009	$	0.999940	$	0.997437		0.000
Transamerica Index 50 VP – Service Class		2010	$	0.928203	$	1.005336		0.000
Subaccount Inception Date May 1, 2008		2009	$	0.814052	$	0.928203		0.000
		2008	$	1.000000	$	0.814052		0.000
Transamerica Index 75 VP – Service Class		2010	$	0.865935	$	0.957485		0.000
Subaccount Inception Date May 1, 2008		2009	$	0.718445	$	0.865935		0.000
		2008	$	1.000000	$	0.718445		0.000
Transamerica Index 100 VP – Service Class		2010	$	1.023376	$	1.145626		0.000
Subaccount inception date November 19, 2009		2009	$	0.999940	$	1.023376		0.000
Transamerica Morgan Stanley Active International Allocation VP – Service Class		2010 2009	$ $	0.871065 0.708350	$ $	0.922243 0.871065		392,583.776 327,745.851
Subaccount Inception Date July 5, 1994		2008	$	1.187790	$	0.708350		130,440.550
		2007	$	1.053195	$	1.187790		383,655.125
		2006	$	1.000000	$	1.053195		10,634.168
Transamerica Multi Managed Large Cap Core VP – Service Class		2010	$	0.904751	$	1.052378		51,726.172
Subaccount Inception Date July 5, 1994		2009	$	0.637320	$	0.904751		53,582.314
		2008	$	1.127087	$	0.637320		31,643.822
		2007	$	1.057444	$	1.127087		31,156.019
		2006	$	1.000000	$	1.057444		0.000
Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class		2010	$	0.971986	$	1.270460		52,988.072
Subaccount Inception Date May 1, 2001		2009	$	0.620384	$	0.971986		25,642.898
		2008	$	1.183888	$	0.620384		33,665.161
		2007	$	0.989934	$	1.183888		33,207.000
		2006	$	1.000000	$	0.989934		0.000
Invesco V.I. Basic Value Fund – Series II Shares		2010	$	0.713676	$	0.746820		0.000
Subaccount Inception Date May 1, 2002		2009	$	0.493700	$	0.713676		0.000
		2008	$	1.049205	$	0.493700		0.000
		2007	$	1.057997	$	1.049205		0.000
		2006	$	1.000000	$	1.057997		0.000
Invesco V.I. Capital Appreciation Fund – Series II Shares		2010	$	0.711919	$	0.802528		0.000
Subaccount Inception Date May 1, 2002		2009	$	0.602721	$	0.711919		0.000
		2008	$	1.073747	$	0.602721		0.000
		2007	$	0.982258	$	1.073747		0.000
		2006	$	1.000000	$	0.982258		0.000
AllianceBernstein Balanced Wealth Strategy Portfolio – Class B		2010	$	1.229961	$	1.324830		0.000
Subaccount Inception Date November 10, 2008		2009	$	1.012024	$	1.229961		0.000
		2008	$	1.000000	$	1.012024		0.000
AllianceBernstein Growth and Income Portfolio – Class B		2010	$	0.772547	$	0.852669		137,133.242
Subaccount Inception Date May 1, 2001		2009	$	0.656049	$	0.772547		137,891.645
		2008	$	1.130667	$	0.656049		0.000
		2007	$	1.102114	$	1.130667		0.000
		2006	$	1.000000	$	1.102114		0.000
AllianceBernstein Large Cap Growth Portfolio – Class B		2010	$	0.866064	$	0.930742		132,801.440
Subaccount Inception Date May 1, 2001		2009	$	0.645570	$	0.866064		167,322.111
		2008	$	1.096458	$	0.645570		3,943.216
		2007	$	0.986416	$	1.096458		3,948.462
		2006	$	1.000000	$	0.986416		0.000
Fidelity VIP Balanced Portfolio – Service Class 2		2010	$	0.896724	$	1.033236		0.000
Subaccount Inception Date May 1, 2008		2009	$	0.662544	$	0.896724		0.000
		2008	$	1.000000	$	0.662544		0.000

30

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.20%
Subaccount			Beginning AUV		Ending AUV		# Units
Fidelity VIP Contrafund ® Portfolio – Service Class 2		2010	$	0.873279	$	0.999136		369,402.061
Subaccount Inception Date May 1, 2000		2009	$	0.658823	$	0.873279		325,026.931
		2008	$	1.175023	$	0.658823		135,896.477
		2007	$	1.023854	$	1.175023		480,594.411
		2006	$	1.000000	$	1.023854		10,470.704
Fidelity VIP Equity-Income Portfolio – Service Class 2		2010	$	0.773660	$	0.869942		32,174.864
Subaccount Inception Date May 1, 2000		2009	$	0.608766	$	0.773660		32,182.942
		2008	$	1.088069	$	0.608766		38,772.723
		2007	$	1.098172	$	1.088069		32,464.068
		2006	$	1.000000	$	1.098172		0.000
Fidelity VIP Growth Portfolio – Service Class 2		2010	$	0.805695	$	0.976488		105,904.127
Subaccount Inception Date May 1, 2001		2009	$	0.643474	$	0.805695		24,943.660
		2008	$	1.248218	$	0.643474		43,449.798
		2007	$	1.007280	$	1.248218		42,777.592
		2006	$	1.000000	$	1.007280		0.000
Fidelity VIP Mid Cap Portfolio – Service Class 2		2010	$	0.892420	$	1.122728		307,196.320
Subaccount Inception Date May 1, 2000		2009	$	0.652621	$	0.892420		272,750.796
		2008	$	1.104504	$	0.652621		80,990.115
		2007	$	0.978803	$	1.104504		466,289.976
		2006	$	1.000000	$	0.978803		12,464.735
Fidelity VIP Value Strategies Portfolio – Service Class 2		2010	$	0.799135	$	0.987886		37,863.659
Subaccount Inception Date May 1, 2002		2009	$	0.519691	$	0.799135		42,267.109
		2008	$	1.090425	$	0.519691		50,495.667
		2007	$	1.057031	$	1.090425		13,901.005
		2006	$	1.000000	$	1.057031		0.000
Franklin Income Securities Fund – Class 2		2010	$	0.881467	$	0.971805		31,099.895
Subaccount Inception Date May 1, 2007		2009	$	0.664363	$	0.881467		32,778.428
		2008	$	0.965310	$	0.664363		35,490.995
		2007	$	1.000000	$	0.965310		18,521.743
Mutual Shares Securities Fund – Class 2		2010	$	0.728066	$	0.792160		0.000
Subaccount Inception Date May 1, 2007		2009	$	0.590319	$	0.728066		0.000
		2008	$	0.959380	$	0.590319		0.000
		2007	$	1.000000	$	0.959380		0.000
Templeton Foreign Securities Fund – Class 2		2010	$	0.831865	$	0.882399		559,511.742
Subaccount Inception Date May 1, 2007		2009	$	0.620360	$	0.831865		497,986.577
		2008	$	1.063477	$	0.620360		62,921.714
		2007	$	1.000000	$	1.063477		637,123.559
Franklin Templeton VIP Founding Funds Allocation Fund – Class 4		2010	$	1.257278	$	1.354217		0.000
Subaccount Inception Date November 10, 2008		2009	$	0.989357	$	1.257278		0.000
		2008	$	1.000000	$	0.989357		0.000
Janus Aspen – Enterprise Portfolio – Service Shares		2010	$	0.966318	$	1.186832		48,865.395
Subaccount Inception Date October 9, 2000		2009	$	0.683719	$	0.966318		10,258.208
		2008	$	1.244769	$	0.683719		54,114.915
		2007	$	1.045077	$	1.244769		3,490.881
		2006	$	1.000000	$	1.045077		0.000
Janus Aspen – Worldwide Portfolio – Service Shares		2010	$	0.857255	$	0.968994		23,468.208
Subaccount Inception Date October 9, 2000		2009	$	0.637625	$	0.857255		23,468.208
		2008	$	1.180831	$	0.637625		29,768.100
		2007	$	1.103619	$	1.180831		29,311.097
		2006	$	1.000000	$	1.103619		0.000

31

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.20%
Subaccount			Beginning AUV		Ending AUV		# Units
MFS ® New Discovery Series – Service Class		2010	$	0.947224	$	1.259972		5,743.634
Subaccount Inception Date May 1, 2002		2009	$	0.594189	$	0.947224		5,743.634
		2008	$	1.004175	$	0.594189		5,743.634
		2007	$	1.003807	$	1.004175		0.000
		2006	$	1.000000	$	1.003807		0.000
MFS ® Total Return Series – Service Class		2010	$	0.949322	$	1.018373		117,471.028
Subaccount Inception Date May 1, 2002		2009	$	0.824129	$	0.949322		16,460.849
		2008	$	1.084369	$	0.824129		26,691.046
		2007	$	1.066387	$	1.084369		31,479.282
		2006	$	1.000000	$	1.066387		5,684.633
American Funds - Asset Allocation Fund – Class 2		2010	$	1.007351	$	1.105694		0.000
Subaccount inception date November 19, 2009		2009	$	0.989763	$	1.007351		0.000
American Funds - Bond Fund – Class 2		2010	$	0.993075	$	1.031303		222,291.441
Subaccount inception date November 19, 2009		2009	$	1.000884	$	0.993075		0.000
American Funds - Growth Fund – Class 2		2010	$	1.002214	$	1.160449		92,287.616
Subaccount inception date November 19, 2009		2009	$	0.986466	$	1.002214		0.000
American Funds - Growth-Income Fund – Class 2		2010	$	1.007604	$	1.095372		0.000
Subaccount inception date November 19, 2009		2009	$	0.986787	$	1.007604		0.000
American Funds - International Fund – Class 2		2010	$	0.979738	$	1.025002		0.000
Subaccount inception date November 19, 2009		2009	$	0.982897	$	0.979738		0.000
GE Investments Total Return Fund – Class 3		2010	$	1.002991	$	1.071233		0.000
Subaccount inceptiond date November 19, 2009		2009	$	0.988795	$	1.002991		0.000
	Year		2.15%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation - Conservative VP – Service Class		2010	$	1.325501	$	1.410588		1,873,931.402
Subaccount Inception Date May 1, 2002		2009	$	1.084034	$	1.325501		1,928,458.053
		2008	$	1.408993	$	1.084034		2,482,622.017
		2007	$	1.356090	$	1.408993		1,435,409.234
		2006	$	1.269130	$	1.356090		953,384.333
		2005	$	1.234511	$	1.269130		1,137,676.082
		2004	$	1.152278	$	1.234511		536,581.000
		2003	$	1.000000	$	1.152278		179,972.944
Transamerica Asset Allocation - Growth VP – Service Class		2010	$	1.348037	$	1.513002		2,939,679.866
Subaccount Inception Date May 1, 2002		2009	$	1.062976	$	1.348037		3,414,953.644
		2008	$	1.802573	$	1.062976		3,468,484.844
		2007	$	1.712514	$	1.802573		6,034,694.788
		2006	$	1.517400	$	1.712514		6,159,837.425
		2005	$	1.384807	$	1.517400		4,021,906.068
		2004	$	1.241984	$	1.384807		3,064,722.000
		2003	$	1.000000	$	1.241984		1,201,091.477
Transamerica Asset Allocation - Moderate VP – Service Class		2010	$	1.372753	$	1.480090		2,282,409.428
Subaccount Inception Date May 1, 2002		2009	$	1.111167	$	1.372753		2,590,206.086
		2008	$	1.538027	$	1.111167		2,991,827.462
		2007	$	1.458473	$	1.538027		4,795,439.912
		2006	$	1.339544	$	1.458473		5,131,712.692
		2005	$	1.277203	$	1.339544		5,115,110.568
		2004	$	1.174098	$	1.277203		2,730,131.000
		2003	$	1.000000	$	1.174098		679,194.714

32

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.15%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation - Moderate Growth VP – Service Class		2010	$	1.374483	$	1.512466		4,665,739.697
Subaccount Inception Date May 1, 2002		2009	$	1.098022	$	1.374483		4,835,060.473
		2008	$	1.672295	$	1.098022		5,083,316.971
		2007	$	1.588385	$	1.672295		6,214,163.500
		2006	$	1.428964	$	1.588385		7,677,330.281
		2005	$	1.330451	$	1.428964		5,310,495.972
		2004	$	1.201059	$	1.330451		3,097,756.000
		2003	$	1.000000	$	1.201059		939,048.775
Transamerica International Moderate Growth VP – Service Class		2010	$	0.860268	$	0.928429		419,643.703
Subaccount Inception Date May 1, 2006		2009	$	0.679492	$	0.860268		474,493.549
		2008	$	1.090028	$	0.679492		497,882.501
		2007	$	1.026410	$	1.090028		367,405.065
		2006	$	1.000000	$	1.026410		0.000
Transamerica BlackRock Large Cap Value VP – Service Class		2010	$	1.374770	$	1.482471		774,900.793
Subaccount Inception Date May 1, 2000		2009	$	1.234971	$	1.374770		495,017.361
		2008	$	1.913440	$	1.234971		255,162.008
		2007	$	1.873346	$	1.913440		279,474.301
		2006	$	1.640798	$	1.873346		253,213.360
		2005	$	1.448152	$	1.640798		248,333.372
		2004	$	1.253702	$	1.448152		78,011.000
		2003	$	1.000000	$	1.253702		42,002.324
Transamerica BlackRock Tactical Allocation VP – Service Class		2010	$	1.002432	$	1.091672		0.000
Subaccount inception date May 1, 2009		2009	$	0.993347	$	1.002432		0.000
Transamerica Clarion Global Real Estate Securities VP – Service Class		2010	$	1.683496	$	1.900236		204,685.485
Subaccount Inception Date May 1, 2002		2009	$	1.292959	$	1.683496		185,759.138
		2008	$	2.297071	$	1.292959		248,337.983
		2007	$	2.520868	$	2.297071		252,795.159
		2006	$	1.814388	$	2.520868		294,762.732
		2005	$	1.637432	$	1.814388		366,181.528
		2004	$	1.262459	$	1.637432		266,453.000
		2003	$	1.000000	$	1.262459		63,434.115
Transamerica JPMorgan Mid Cap Value VP – Service Class		2010	$	1.028874	$	1.237099		0.000
Subaccount inception date November 19, 2009		2009	$	0.985141	$	1.028874		0.000
Transamerica JPMorgan Enhanced Index VP – Service Class		2010	$	1.179562	$	1.326274		91,959.668
Subaccount Inception Date May 1, 1997		2009	$	0.931759	$	1.179562		101,832.525
		2008	$	1.523527	$	0.931759		94,706.021
		2007	$	1.492264	$	1.523527		94,971.323
		2006	$	1.325861	$	1.492264		358,336.370
		2005	$	1.312320	$	1.325861		1,372,078.604
		2004	$	1.210944	$	1.312320		1,113,351.000
		2003	$	1.000000	$	1.210944		0.000
Transamerica Jennison Growth VP– Service Class		2010	$	1.303937	$	1.429363		685,267.091
Subaccount Inception Date November 20, 1996		2009	$	0.946742	$	1.303937		39,633.086
		2008	$	1.537870	$	0.946742		15,325.946
		2007	$	1.411887	$	1.537870		15,325.946
		2006	$	1.419451	$	1.411887		15,325.946
		2005	$	1.277195	$	1.419451		17,116.169
		2004	$	1.198453	$	1.277195		40,745.000
		2003	$	1.000000	$	1.198453		0.000

33

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.15%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Morgan Stanley Capital Growth VP – Service Class(5)		2010	$	1.219584	$	1.517316		192,823.192
Subaccount Inception Date May 1, 2000		2009	$	0.976595	$	1.219584		194,647.348
		2008	$	1.572158	$	0.976595		202,655.826
		2007	$	1.593965	$	1.572158		269,248.002
		2006	$	1.376368	$	1.593965		410,726.323
		2005	$	1.354336	$	1.376368		298,608.359
		2004	$	1.270508	$	1.354336		265,380.000
		2003	$	1.000000	$	1.270508		67,280.160
Transamerica AEGON High Yield Bond VP – Service Class		2010	$	1.302247	$	1.429973		614,636.683
Subaccount Inception Date June 2, 1998		2009	$	0.905796	$	1.302247		661,375.335
		2008	$	1.241463	$	0.905796		721,162.519
		2007	$	1.246751	$	1.241463		100,722.824
		2006	$	1.151260	$	1.246751		104,493.839
		2005	$	1.158535	$	1.151260		108,140.740
		2004	$	1.080784	$	1.158535		175,332.000
		2003	$	1.000000	$	1.080784		157,622.638
Transamerica MFS International Equity VP – Service Class		2010	$	1.611688	$	1.740377		91,686.741
Subaccount Inception Date May 1, 2001		2009	$	1.244990	$	1.611688		94,923.154
		2008	$	1.973156	$	1.244990		99,549.722
		2007	$	1.851605	$	1.973156		235,625.538
		2006	$	1.538650	$	1.851605		247,769.548
		2005	$	1.398004	$	1.538650		261,854.317
		2004	$	1.250244	$	1.398004		177,027.000
		2003	$	1.000000	$	1.250244		102,017.265
Transamerica PIMCO Total Return VP – Service Class		2010	$	1.194111	$	1.250055		1,189,263.952
Subaccount Inception Date May 1, 2002		2009	$	1.053799	$	1.194111		1,261,928.300
		2008	$	1.110668	$	1.053799		700,796.489
		2007	$	1.042860	$	1.110668		971,174.920
		2006	$	1.025258	$	1.042860		928,230.457
		2005	$	1.026377	$	1.025258		1,000,389.363
		2004	$	1.006080	$	1.026377		658,356.000
		2003	$	1.000000	$	1.006080		239,952.455
Transamerica T. Rowe Price Small Cap VP – Service Class		2010	$	1.410149	$	1.850689		200,914.667
Subaccount Inception Date May 1, 2000		2009	$	1.041318	$	1.410149		203,157.795
		2008	$	1.672766	$	1.041318		194,406.272
		2007	$	1.563893	$	1.672766		178,833.197
		2006	$	1.545814	$	1.563893		404,819.697
		2005	$	1.430228	$	1.545814		378,416.860
		2004	$	1.326829	$	1.430228		313,716.000
		2003	$	1.000000	$	1.326829		101,816.725
Transamerica WMC Diversified Equity VP – Service Class(6)		2010	$	1.017952	$	1.161435		641,308.505
Subaccount Inception Date May 1, 2000		2009	$	0.813353	$	1.017952		602,949.933
		2008	$	1.478894	$	0.813353		4,755.102
		2007	$	1.314007	$	1.478894		4,755.102
		2006	$	1.133136	$	1.314007		0.000
		2005	$	1.079394	$	1.133136		4,432.714
		2004	$	1.201198	$	1.079394		4,350.000
		2003	$	1.000000	$	1.201198		0.000
Transamerica Efficient Markets VP – Service Class		2010	$	1.195259	$	1.314939		0.000
Subaccount Inception Date November 10, 2008		2009	$	1.035918	$	1.195259		0.000
		2008	$	1.000000	$	1.035918		0.000

34

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.15%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Multi-Managed Balanced VP – Service Class(1)		2010	$	1.204240	$	1.460472		28,385.444
Subaccount Inception Date May 1, 2002		2009	$	0.976767	$	1.204240		29,364.361
		2008	$	1.479924	$	0.976767		32,647.518
		2007	$	1.333543	$	1.479924		33,187.572
		2006	$	1.252650	$	1.333543		36,329.615
		2005	$	1.187040	$	1.252650		36,577.685
		2004	$	1.093673	$	1.187040		38,942.000
		2003	$	1.000000	$	1.093673		0.000
Transamerica AllianceBernstein Dynamic Allocation VP – Service Class(7)		2010	$	1.279852	$	1.367579		50,488.343
Subaccount Inception Date May 1, 2002		2009	$	0.996728	$	1.279852		48,386.689
		2008	$	1.616227	$	0.996728		53,550.687
		2007	$	1.395882	$	1.616227		78,435.731
		2006	$	1.288563	$	1.395882		55,829.488
		2005	$	1.271177	$	1.288563		31,420.365
		2004	$	1.149242	$	1.271177		3,391.000
		2003	$	1.000000	$	1.149242		0.000
Transamerica WMC Diversified Growth VP – Service Class		2010	$	1.244787	$	1.431639		451,234.084
Subaccount Inception Date May 1, 2000		2009	$	0.986483	$	1.244787		463,695.354
		2008	$	1.872364	$	0.986483		417,090.899
		2007	$	1.648376	$	1.872364		472,810.388
		2006	$	1.553501	$	1.648376		563,024.373
		2005	$	1.364662	$	1.553501		574,290.404
		2004	$	1.205743	$	1.364662		395,965.000
		2003	$	1.000000	$	1.205743		38,359.608
Transamerica Morgan Stanley Growth Opportunities VP – Service Class(8)		2010	$	1.534555	$	2.032348		49,202.008
Subaccount Inception Date May 1, 2001		2009	$	1.148234	$	1.534555		52,651.522
		2008	$	1.990409	$	1.148234		39,609.615
		2007	$	1.656734	$	1.990409		141,999.390
		2006	$	1.613251	$	1.656734		178,737.813
		2005	$	1.421396	$	1.613251		313,519.293
		2004	$	1.246300	$	1.421396		74,869.000
		2003	$	1.000000	$	1.246300		48,950.305
Transamerica AEGON Money Market VP – Service Class(2)		2010	$	1.006569	$	0.985442		452,318.667
Subaccount Inception Date July 5, 1994		2009	$	1.028091	$	1.006569		951,101.316
		2008	$	1.028011	$	1.028091		1,286,239.026
		2007	$	1.002449	$	1.028011		437,887.594
		2006	$	0.980126	$	1.002449		227,643.569
		2005	$	0.975511	$	0.980126		10,372.450
		2004	$	0.989088	$	0.975511		6,407.000
		2003	$	1.000000	$	0.989088		216,867.4832
Transamerica Systematic Small/Mid Cap Value VP – Service Class(9)		2010	$	0.919767	$	1.171007		82,377.749
Subaccount Inception Date July 5, 1994		2009	$	0.657484	$	0.919767		49,205.015
		2008	$	1.000000	$	0.657484		0.000
Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010	$	1.117712	$	1.140400		417,276.389
Subaccount Inception Date August 3, 1994		2009	$	1.095748	$	1.117712		433,673.132
		2008	$	1.042101	$	1.095748		872,047.666
		2007	$	1.006430	$	1.042101		101,410.831
		2006	$	0.997496	$	1.006430		105,351.787
		2005	$	0.999084	$	0.997496		145,132.240
		2004	$	0.991836	$	0.999084		68,802.000
		2003	$	1.000000	$	0.991836		26,176.409
Transamerica Index 35 VP – Service Class		2010	$	0.997500	$	1.068541		0.000
Subaccount inception date November 19, 2009		2009	$	0.999942	$	0.997500		0.000

35

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.15%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Index 50 VP – Service Class		2010	$	0.928956	$	1.006651		11,169.593
Subaccount Inception Date May 1, 2008		2009	$	0.814316	$	0.928956		11,205.641
		2008	$	1.000000	$	0.814316		0.000
Transamerica Index 75 VP – Service Class		2010	$	0.866647	$	0.958745		4,301.697
Subaccount Inception Date May 1, 2008		2009	$	0.718684	$	0.866647		4,305.529
		2008	$	1.000000	$	0.718684		0.000
Transamerica Index 100 VP – Service Class		2010	$	1.023437	$	1.146248		0.000
Subaccount inception date November 19, 2009		2009	$	0.999942	$	1.023437		0.000
Transamerica Morgan Stanley Active International Allocation VP – Service Class		2010 2009	$ $	1.645991 1.337860	$ $	1.743544 1.645991		312,644.586 313,124.823
Subaccount Inception Date July 5, 1994		2008	$	2.242303	$	1.337860		316,075.400
		2007	$	1.987234	$	2.242303		372,198.321
		2006	$	1.647788	$	1.987234		338,096.217
		2005	$	1.481461	$	1.647788		334,559.680
		2004	$	1.307862	$	1.481461		304,963.000
		2003	$	1.000000	$	1.307862		74,368.417
Transamerica Multi Managed Large Cap Core VP – Service Class		2010	$	1.244984	$	1.448837		270,709.812
Subaccount Inception Date July 5, 1994		2009	$	0.876554	$	1.244984		284,783.183
		2008	$	1.549416	$	0.876554		31,001.174
		2007	$	1.452967	$	1.549416		28,230.593
		2006	$	1.348438	$	1.452967		80,342.102
		2005	$	1.262208	$	1.348438		80,479.008
		2004	$	1.145861	$	1.262208		38,665.000
		2003	$	1.000000	$	1.145861		0.000
Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class		2010	$	1.374217	$	1.797079		26,437.137
Subaccount Inception Date May 1, 2001		2009	$	0.876694	$	1.374217		26,581.151
		2008	$	1.672182	$	0.876694		23,996.686
		2007	$	1.397529	$	1.672182		38,924.941
		2006	$	1.302569	$	1.397529		123,174.408
		2005	$	1.239838	$	1.302569		124,303.118
		2004	$	1.184648	$	1.239838		125,106.000
		2003	$	1.000000	$	1.184648		23,023.688
Invesco V.I. Basic Value Fund – Series II Shares		2010	$	1.074985	$	1.125456		101,644.904
Subaccount Inception Date May 1, 2002		2009	$	0.743277	$	1.074985		107,486.988
		2008	$	1.578813	$	0.743277		66,037.760
		2007	$	1.591252	$	1.578813		56,911.712
		2006	$	1.439122	$	1.591252		74,031.520
		2005	$	1.394287	$	1.439122		74,265.282
		2004	$	1.285073	$	1.394287		68,626.000
		2003	$	1.000000	$	1.285073		5,919.219
Invesco V.I. Capital Appreciation Fund – Series II Shares		2010	$	1.017376	$	1.147426		0.000
Subaccount Inception Date May 1, 2002		2009	$	0.860882	$	1.017376		0.000
		2008	$	1.532894	$	0.860882		0.000
		2007	$	1.401590	$	1.532894		0.000
		2006	$	1.349869	$	1.401590		0.000
		2005	$	1.269873	$	1.349869		0.000
		2004	$	1.219988	$	1.269873		0.000
		2003	$	1.000000	$	1.219988		0.000
AllianceBernstein Balanced Wealth Strategy Portfolio – Class B		2010	$	1.230654	$	1.326218		0.000
Subaccount Inception Date November 10, 2008		2009	$	1.012092	$	1.230654		0.000
		2008	$	1.000000	$	1.012092		0.000

36

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.15%
Subaccount			Beginning AUV		Ending AUV		# Units
AllianceBernstein Growth and Income Portfolio – Class B		2010	$	1.097579	$	1.212010		237,619.809
Subaccount Inception Date May 1, 2001		2009	$	0.931613	$	1.097579		239,492.303
		2008	$	1.604815	$	0.931613		264,454.605
		2007	$	1.563517	$	1.604815		268,088.522
		2006	$	1.365174	$	1.563517		275,224.306
		2005	$	1.333168	$	1.365174		286,973.126
		2004	$	1.224493	$	1.333168		290,239.000
		2003	$	1.000000	$	1.224493		114,697.784
AllianceBernstein Large Cap Growth Portfolio – Class B		2010	$	1.167532	$	1.255344		195,379.345
Subaccount Inception Date May 1, 2001		2009	$	0.869870	$	1.167532		186,754.085
		2008	$	1.476695	$	0.869870		169,973.549
		2007	$	1.327845	$	1.476695		170,383.441
		2006	$	1.365080	$	1.327845		170,644.138
		2005	$	1.214121	$	1.365080		161,683.443
		2004	$	1.144760	$	1.214121		48,544.000
		2003	$	1.000000	$	1.144760		47,733.393
Fidelity VIP Balanced Portfolio – Service Class 2		2010	$	0.897454	$	1.034575		0.000
Subaccount Inception Date May 1, 2008		2009	$	0.662760	$	0.897454		0.000
		2008	$	1.000000	$	0.662760		0.000
Fidelity VIP Contrafund ® Portfolio – Service Class 2		2010	$	1.480365	$	1.694530		544,118.828
Subaccount Inception Date May 1, 2000		2009	$	1.116280	$	1.480365		544,766.097
		2008	$	1.989918	$	1.116280		511,499.203
		2007	$	1.733058	$	1.989918		742,112.074
		2006	$	1.588607	$	1.733058		674,170.279
		2005	$	1.391080	$	1.588607		659,549.148
		2004	$	1.233995	$	1.391080		255,237.000
		2003	$	1.000000	$	1.233995		83,464.910
Fidelity VIP Equity-Income Portfolio – Service Class 2		2010	$	1.167869	$	1.313868		83,869.689
Subaccount Inception Date May 1, 2000		2009	$	0.918503	$	1.167869		83,710.773
		2008	$	1.640841	$	0.918503		92,166.928
		2007	$	1.655258	$	1.640841		86,513.185
		2006	$	1.409780	$	1.655258		267,536.727
		2005	$	1.364018	$	1.409780		190,493.555
		2004	$	1.252706	$	1.364018		136,367.000
		2003	$	1.000000	$	1.252706		77,379.047
Fidelity VIP Growth Portfolio – Service Class 2		2010	$	1.080349	$	1.309996		94,488.027
Subaccount Inception Date May 1, 2001		2009	$	0.862406	$	1.080349		94,671.968
		2008	$	1.672074	$	0.862406		91,775.171
		2007	$	1.348661	$	1.672074		80,837.215
		2006	$	1.292627	$	1.348661		106,218.684
		2005	$	1.251476	$	1.292627		124,081.249
		2004	$	1.239747	$	1.251476		94,028.000
		2003	$	1.000000	$	1.239747		11,204.374
Fidelity VIP Mid Cap Portfolio – Service Class 2		2010	$	1.964731	$	2.472967		506,792.651
Subaccount Inception Date May 1, 2000		2009	$	1.436090	$	1.964731		514,906.085
		2008	$	2.429262	$	1.436090		498,623.150
		2007	$	2.151737	$	2.429262		750,741.561
		2006	$	1.955351	$	2.151737		720,299.054
		2005	$	1.692355	$	1.955351		772,717.827
		2004	$	1.386871	$	1.692355		381,416.000
		2003	$	1.000000	$	1.386871		133,784.257

37

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.15%
Subaccount			Beginning AUV		Ending AUV		# Units
Fidelity VIP Value Strategies Portfolio – Service Class 2		2010	$	1.414285	$	1.749201		300,848.858
Subaccount Inception Date May 1, 2002		2009	$	0.919295	$	1.414285		318,662.057
		2008	$	1.927952	$	0.919295		336,063.844
		2007	$	1.867997	$	1.927952		419,807.998
		2006	$	1.644751	$	1.867997		502,636.818
		2005	$	1.640189	$	1.644751		471,967.131
		2004	$	1.471850	$	1.640189		369,833.000
		2003	$	1.000000	$	1.471850		146,595.072
Franklin Income Securities Fund – Class 2		2010	$	0.882623	$	0.973557		63,440.659
Subaccount Inception Date May 1, 2007		2009	$	0.664906	$	0.882623		36,481.412
		2008	$	0.965627	$	0.664906		36,491.486
		2007	$	1.000000	$	0.965627		13,238.852
Mutual Shares Securities Fund – Class 2		2010	$	0.729031	$	0.793595		0.000
Subaccount Inception Date May 1, 2007		2009	$	0.590810	$	0.729031		0.000
		2008	$	0.959702	$	0.590810		0.000
		2007	$	1.000000	$	0.959702		0.000
Templeton Foreign Securities Fund – Class 2		2010	$	0.832934	$	0.883971		184,430.829
Subaccount Inception Date May 1, 2007		2009	$	0.620853	$	0.832934		58,184.934
		2008	$	1.063816	$	0.620853		0.000
		2007	$	1.000000	$	1.063816		0.000
Franklin Templeton VIP Founding Funds Allocation Fund – Class 4		2010	$	1.257960	$	1.355619		0.000
Subaccount Inception Date November 10, 2008		2009	$	0.989426	$	1.257960		0.000
		2008	$	1.000000	$	0.989426		0.000
Janus Aspen – Enterprise Portfolio – Service Shares		2010	$	1.662040	$	2.042316		76,974.691
Subaccount Inception Date October 9, 2000		2009	$	1.175386	$	1.662040		81,680.157
		2008	$	2.138831	$	1.175386		81,983.165
		2007	$	1.794831	$	2.138831		85,077.565
		2006	$	1.618038	$	1.794831		85,683.518
		2005	$	1.475288	$	1.618038		96,297.251
		2004	$	1.250953	$	1.475288		92,181.000
		2003	$	1.000000	$	1.250953		10,363.837
Janus Aspen – Worldwide Portfolio – Service Shares		2010	$	1.172770	$	1.326286		184,972.467
Subaccount Inception Date October 9, 2000		2009	$	0.871869	$	1.172770		190,110.270
		2008	$	1.613854	$	0.871869		163,788.505
		2007	$	1.507580	$	1.613854		164,667.097
		2006	$	1.305700	$	1.507580		164,345.091
		2005	$	1.263357	$	1.305700		161,063.273
		2004	$	1.234690	$	1.263357		161,412.000
		2003	$	1.000000	$	1.234690		215.949
MFS® New Discovery Series – Service Class		2010	$	1.416164	$	1.884653		134,578.286
Subaccount Inception Date May 1, 2002		2009	$	0.887916	$	1.416164		148,887.174
		2008	$	1.499841	$	0.887916		130,537.787
		2007	$	1.498539	$	1.499841		169,448.655
		2006	$	1.355412	$	1.498539		133,019.620
		2005	$	1.318163	$	1.355412		139,846.163
		2004	$	1.267862	$	1.318163		96,913.000
		2003	$	1.000000	$	1.267862		50,423.630

38

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		2.15%
Subaccount			Beginning AUV		Ending AUV		# Units
MFS® Total Return Series – Service Class		2010	$	1.190685	$	1.277917		128,731.106
Subaccount Inception Date May 1, 2002		2009	$	1.033161	$	1.190685		151,350.994
		2008	$	1.358741	$	1.033161		123,998.994
		2007	$	1.335553	$	1.358741		204,767.048
		2006	$	1.222132	$	1.335553		234,584.502
		2005	$	1.216718	$	1.222132		197,411.119
		2004	$	1.119499	$	1.216718		185,984.000
		2003	$	1.000000	$	1.119499		82,360.117
	Year		1.90%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation - Conservative VP – Service Class		2010	$	1.015120	$	1.082938		4,189,722.984
Subaccount Inception Date May 1, 2002		2009	$	0.828163	$	1.015120		3,985,042.434
		2008	$	1.073776	$	0.828163		4,894,990.078
		2007	$	1.030912	$	1.073776		2,084,202.644
		2006	$	1.000000	$	1.030912		511,262.328
Transamerica Asset Allocation - Growth VP – Service Class		2010	$	0.828876	$	0.932582		745,881.138
Subaccount Inception Date May 1, 2002		2009	$	0.652006	$	0.828876		787,970.364
		2008	$	1.102931	$	0.652006		795,660.503
		2007	$	1.045246	$	1.102931		966,514.483
		2006	$	1.000000	$	1.045246		318,695.737
Transamerica Asset Allocation - Moderate VP – Service Class		2010	$	0.983380	$	1.062879		13,424,691.315
Subaccount Inception Date May 1, 2002		2009	$	0.794044	$	0.983380		14,175,984.447
		2008	$	1.096387	$	0.794044		9,962,953.196
		2007	$	1.037121	$	1.096387		6,045,535.743
		2006	$	1.000000	$	1.037121		1,118,657.605
Transamerica Asset Allocation - Moderate Growth VP – Service Class		2010	$	0.908385	$	1.002038		23,739,853.324
Subaccount Inception Date May 1, 2002		2009	$	0.723890	$	0.908385		21,209,465.843
		2008	$	1.099775	$	0.723890		17,142,181.518
		2007	$	1.042026	$	1.099775		20,513,887.854
		2006	$	1.000000	$	1.042026		7,281,010.652
Transamerica International Moderate Growth VP – Service Class		2010	$	0.868064	$	0.939130		2,096,589.276
Subaccount Inception Date May 1, 2006		2009	$	0.683958	$	0.868064		2,041,513.547
		2008	$	1.094494	$	0.683958		2,128,751.748
		2007	$	1.028086	$	1.094494		1,219,711.124
		2006	$	1.000000	$	1.028086		134,295.597
Transamerica BlackRock Global Allocation VP – Service Class		2010	$	1.200030	$	1.291530		1,742,008.410
Subaccount inception date May 1, 2009		2009	$	1.000000	$	1.200030		130,561.494
Transamerica BlackRock Large Cap Value VP – Service Class		2010	$	0.786258	$	0.849934		513,541.712
Subaccount Inception Date May 1, 2000		2009	$	0.704580	$	0.786258		177,029.895
		2008	$	1.088974	$	0.704580		36,500.817
		2007	$	1.063525	$	1.088974		35,915.227
		2006	$	1.000000	$	1.063525		13,227.866
Transamerica BlackRock Tactical Allocation VP – Service Class		2010	$	1.203782	$	1.314161		439,035.128
Subaccount inception date May 1, 2009		2009	$	1.000000	$	1.203782		39,945.950
Transamerica Clarion Global Real Estate Securities VP – Service Class		2010	$	0.830462	$	0.939678		56,741.049
Subaccount Inception Date May 1, 2002		2009	$	0.636251	$	0.830462		34,859.190
		2008	$	1.127580	$	0.636251		33,217.449
		2007	$	1.234393	$	1.127580		18,865.159
		2006	$	1.000000	$	1.234393		106,063.702

39

CONDENSED FINANCIAL INFORMATION — (Continued)

Subaccount	Year		1.90%
			Beginning AUV		Ending AUV		# Units
Transamerica Foxhall Emerging Markets/Pacific Rim VP – Service Class		2010	$	1.008852	$	1.023470		153,223.331
Subaccount inception date November 19, 2009		2009	$	0.990706	$	1.008852		0.000
Transamerica Foxhall Global Conservative VP – Service Class		2010	$	0.983154	$	0.906012		85,133.978
Subaccount inception date November 19, 2009		2009	$	0.995061	$	0.983154		6,105.109
Transamerica Foxhall Global Growth VP – Service Class		2010	$	1.006014	$	1.040454		336,433.282
Subaccount inception date November 19, 2009		2009	$	0.988959	$	1.006014		0.000
Transamerica Foxhall Global Commodities & Hard Asset VP – Service Class(4)		2010	$	0.985386	$	0.997017		213,727.512
Subaccount inception date November 19, 2009		2009	$	0.986564	$	0.985386		0.000
Transamerica Hanlon Balanced VP – Service Class		2010	$	1.020195	$	0.966530		273,914.673
Subaccount inception Date November 19, 2009		2009	$	0.998151	$	1.020195		0.000
Transamerica Hanlon Growth VP – Service Class		2010	$	1.020867	$	0.994774		69,482.035
Subaccount Inception date November 19, 2009		2009	$	0.996390	$	1.020867		0.000
Transamerica Hanlon Growth and Income VP – Service Class		2010	$	1.021949	$	0.981666		235,138.846
Subaccount inception date November 19, 2009		2009	$	0.997258	$	1.021949		2,461.660
Transamerica Hanlon Managed Income VP – Service Class		2010	$	1.003215	$	0.985670		1,667,255.756
Subaccount inception date November 19, 2009		2009	$	0.999948	$	1.003215		291,366.364
Transamerica JPMorgan Enhanced Index VP – Service Class		2010	$	0.867821	$	0.978148		8,630.181
Subaccount Inception Date May 1, 1997		2009	$	0.683847	$	0.867821		8,630.181
		2008	$	1.115419	$	0.683847		8,630.181
		2007	$	1.089839	$	1.115419		0.000
		2006	$	1.000000	$	1.089839		0.000
Transamerica JPMorgan Mid Cap Value VP – Service Class		2010	$	1.029171	$	1.240489		81,449.809
Subaccount inception date November 19, 2009		2009	$	0.985147	$	1.029171		0.000
Transamerica Jennison Growth VP– Service Class		2010	$	0.934657	$	1.027068		144,658.702
Subaccount Inception Date November 20, 1996		2009	$	0.676964	$	0.934657		2,056.689
		2008	$	1.096928	$	0.676964		0.000
		2007	$	1.004583	$	1.096928		9,289.403
		2006	$	1.000000	$	1.004583		0.000
Transamerica Morgan Stanley Capital Growth VP – Service Class(5)		2010	$	0.830356	$	1.035609		91,239.904
Subaccount Inception Date May 1, 2000		2009	$	0.663281	$	0.830356		93,372.252
		2008	$	1.065145	$	0.663281		81,082.873
		2007	$	1.077262	$	1.065145		99,442.440
		2006	$	1.000000	$	1.077262		98,224.038
Transamerica AEGON High Yield Bond VP – Service Class		2010	$	1.112807	$	1.224966		62,220.674
Subaccount Inception Date June 2, 1998		2009	$	0.772135	$	1.112807		33,540.262
		2008	$	1.055670	$	0.772135		0.000
		2007	$	1.057560	$	1.055670		0.000
		2006	$	1.000000	$	1.057560		0.000
Transamerica MFS International Equity VP – Service Class		2010	$	0.927939	$	1.004489		223,871.740
Subaccount Inception Date May 1, 2001		2009	$	0.715058	$	0.927939		136,937.087
		2008	$	1.130491	$	0.715058		142,098.434
		2007	$	1.058240	$	1.130491		90,369.755
		2006	$	1.000000	$	1.058240		39,497.212
Transamerica PIMCO Total Return VP – Service Class		2010	$	1.194546	$	1.253577		1,233,602.205
Subaccount Inception Date May 1, 2002		2009	$	1.051601	$	1.194546		790,154.232
		2008	$	1.105623	$	1.051601		211,893.582
		2007	$	1.035566	$	1.105623		124,982.616
		2006	$	1.000000	$	1.035566		76,442.058

40

CONDENSED FINANCIAL INFORMATION — (Continued)

Subaccount	Year		1.90%
			Beginning AUV		Ending AUV		# Units
Transamerica ProFunds UltraBear Fund – Service Class OAM		2010	$	0.560855	$	0.403088		470,431.312
Subaccount inception date May 1, 2009		2009	$	1.000000	$	0.560855		0.000
Transamerica T. Rowe Price Small Cap VP – Service Class		2010	$	0.858378	$	1.129298		183,919.660
Subaccount Inception Date May 1, 2000		2009	$	0.632312	$	0.858378		27,681.631
		2008	$	1.013242	$	0.632312		57,694.968
		2007	$	0.944996	$	1.013242		65,322.019
		2006	$	1.000000	$	0.944996		51,584.638
Transamerica WMC Diversified Equity VP – Service Class(6)		2010	$	0.837828	$	0.958272		303,136.635
Subaccount Inception Date May 1, 2000		2009	$	0.667789	$	0.837828		151,245.417
		2008	$	1.211228	$	0.667789		30,123.783
		2007	$	1.073545	$	1.211228		31,339.264
		2006	$	1.000000	$	1.073545		33,725.433
Transamerica Efficient Markets VP – Service Class		2010	$	1.198589	$	1.321829		69,530.096
Subaccount Inception Date November 10, 2008		2009	$	1.036272	$	1.198589		9,805.450
		2008	$	1.000000	$	1.036272		0.000
Transamerica Multi-Managed Balanced VP – Service Class(1)		2010	$	0.932035	$	1.133116		642,185.379
Subaccount Inception Date May 1, 2002		2009	$	0.754138	$	0.932035		637,354.565
		2008	$	1.139811	$	0.754138		231,609.778
		2007	$	1.024544	$	1.139811		111,257.916
		2006	$	1.000000	$	1.024544		41,163.775
Transamerica AllianceBernstein Dynamic Allocation VP – Service Class(7)		2010	$	0.914390	$	0.979463		33,747.651
Subaccount Inception Date May 1, 2002		2009	$	0.710376	$	0.914390		26,968.407
		2008	$	1.149055	$	0.710376		6,687.833
		2007	$	0.989965	$	1.149055		6,776.405
		2006	$	1.000000	$	0.989965		0.000
Transamerica WMC Diversified Growth VP – Service Class		2010	$	0.767731	$	0.885130		132,777.874
Subaccount Inception Date May 1, 2000		2009	$	0.606932	$	0.767731		69,016.481
		2008	$	1.149132	$	0.606932		32,468.901
		2007	$	1.009173	$	1.149132		27,950.244
		2006	$	1.000000	$	1.009173		105,090.753
Transamerica Morgan Stanley Growth Opportunities VP – Service Class(8)		2010	$	0.893848	$	1.186711		81,676.789
Subaccount Inception Date May 1, 2001		2009	$	0.667186	$	0.893848		80,267.928
		2008	$	1.153690	$	0.667186		62,441.741
		2007	$	0.957925	$	1.153690		57,486.116
		2006	$	1.000000	$	0.957925		0.000
Transamerica AEGON Money Market VP – Service Class(2)		2010	$	1.030079	$	1.010924		729,816.250
Subaccount Inception Date July 5, 1994		2009	$	1.049513	$	1.030079		399,264.666
		2008	$	1.046863	$	1.049513		676,118.179
		2007	$	1.018335	$	1.046863		343,026.579
		2006	$	1.000000	$	1.018335		116,990.871
Transamerica Systematic Small/Mid Cap Value VP – Service Class(9)		2010	$	0.924159	$	1.179470		195,853.864
Subaccount Inception Date July 5, 1994		2009	$	0.659011	$	0.924159		13,539.443
		2008	$	1.000000	$	0.659011		1,314.549
Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010	$	1.159638	$	1.186078		598,532.880
Subaccount Inception Date August 3, 1994		2009	$	1.134074	$	1.159638		477,437.077
		2008	$	1.075910	$	1.134074		444,400.151
		2007	$	1.036528	$	1.075910		0.000
		2006	$	1.000000	$	1.036528		0.000
Transamerica Index 35 VP – Service Class		2010	$	0.997783	$	1.071463		927.933
Subaccount inception date November 19, 2009		2009	$	0.999948	$	0.997783		0.000

41

CONDENSED FINANCIAL INFORMATION — (Continued)

Subaccount	Year		1.90%
			Beginning AUV		Ending AUV		# Units
Transamerica Index 50 VP – Service Class		2010	$	0.932770	$	1.013256		231,910.845
Subaccount Inception Date May 1, 2008		2009	$	0.815656	$	0.932770		185,075.215
		2008	$	1.000000	$	0.815656		0.000
Transamerica Index 75 VP – Service Class		2010	$	0.870203	$	0.965040		1,143,705.016
Subaccount Inception Date May 1, 2008		2009	$	0.719866	$	0.870203		866,031.593
		2008	$	1.000000	$	0.719866		643,424.842
Transamerica Index 100 VP – Service Class		2010	$	1.023730	$	1.149386		0.000
Subaccount inception date November 19, 2009		2009	$	0.999948	$	1.023730		0.000
Transamerica Morgan Stanley Active International Allocation VP – Service Class		2010 2009	$ $	0.880545 0.713948	$ $	0.935021 0.880545		142,155.233 138,862.062
Subaccount Inception Date July 5, 1994		2008	$	1.193650	$	0.713948		93,823.825
		2007	$	1.055268	$	1.193650		64,036.082
		2006	$	1.000000	$	1.055268		70,359.136
Transamerica Multi Managed Large Cap Core VP – Service Class		2010	$	0.914578	$	1.066931		462,258.485
Subaccount Inception Date July 5, 1994		2009	$	0.642348	$	0.914578		229,872.428
		2008	$	1.132631	$	0.642348		0.000
		2007	$	1.059512	$	1.132631		0.000
		2006	$	1.000000	$	1.059512		0.000
Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class		2010	$	0.982522	$	1.287990		127,657.607
Subaccount Inception Date May 1, 2001		2009	$	0.625274	$	0.982522		27,347.953
		2008	$	1.189694	$	0.625274		25,842.364
		2007	$	0.991858	$	1.189694		21,301.345
		2006	$	1.000000	$	0.991858		869.928
PAM Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010 2009	$ $	1.159638 1.134074	$ $	1.186078 1.159638		626,365.072 515,621.744
Subaccount Inception Date November 3, 2003		2008	$	1.075910	$	1.134074		787,322.762
		2007	$	1.036528	$	1.075910		81,371.416
		2006	$	1.000000	$	1.036528		0.000
Invesco V.I. Basic Value Fund – Series II Shares		2010	$	0.721445	$	0.757172		18,147.514
Subaccount Inception Date May 1, 2002		2009	$	0.497605	$	0.721445		1,087.021
		2008	$	1.054375	$	0.497605		3,319.689
		2007	$	1.060064	$	1.054375		13,414.948
		2006	$	1.000000	$	1.060064		13,771.621
Invesco V.I. Capital Appreciation Fund – Series II Shares		2010	$	0.719664	$	0.813650		25,635.719
Subaccount Inception Date May 1, 2002		2009	$	0.607483	$	0.719664		25,988.432
		2008	$	1.079021	$	0.607483		27,307.543
		2007	$	0.984167	$	1.079021		12,369.902
		2006	$	1.000000	$	0.984167		3,817.887
AllianceBernstein Balanced Wealth Strategy Portfolio – Class B		2010	$	1.234087	$	1.333173		5,378.614
Subaccount Inception Date November 10, 2008		2009	$	1.012438	$	1.234087		0.000
		2008	$	1.000000	$	1.012438		0.000
AllianceBernstein Growth and Income Portfolio – Class B		2010	$	0.780936	$	0.864477		7,353.541
Subaccount Inception Date May 1, 2001		2009	$	0.661227	$	0.780936		7,353.541
		2008	$	1.136227	$	0.661227		0.000
		2007	$	1.104265	$	1.136227		0.000
		2006	$	1.000000	$	1.104265		0.000
AllianceBernstein Large Cap Growth Portfolio – Class B		2010	$	0.875466	$	0.943619		3,966.221
Subaccount Inception Date May 1, 2001		2009	$	0.650665	$	0.875466		3,971.995
		2008	$	1.101853	$	0.650665		1,293.299
		2007	$	0.988345	$	1.101853		9,458.939
		2006	$	1.000000	$	0.988345		0.000

42

CONDENSED FINANCIAL INFORMATION — (Continued)

Subaccount	Year		1.90%
			Beginning AUV		Ending AUV		# Units
Fidelity VIP Balanced Portfolio – Service Class 2		2010	$	0.901140	$	1.041380		131,950.363
Subaccount Inception Date May 1, 2008		2009	$	0.663853	$	0.901140		78,165.444
		2008	$	1.000000	$	0.663853		0.000
Fidelity VIP Contrafund ® Portfolio – Service Class 2		2010	$	0.882764	$	1.012949		362,724.457
Subaccount Inception Date May 1, 2000		2009	$	0.664024	$	0.882764		89,329.091
		2008	$	1.180803	$	0.664024		60,103.259
		2007	$	1.025856	$	1.180803		51,894.975
		2006	$	1.000000	$	1.025856		18,380.628
Fidelity VIP Equity-Income Portfolio – Service Class 2		2010	$	0.782082	$	0.881994		178,232.902
Subaccount Inception Date May 1, 2000		2009	$	0.613580	$	0.782082		167,938.302
		2008	$	1.093424	$	0.613580		173,463.859
		2007	$	1.100311	$	1.093424		148,014.352
		2006	$	1.000000	$	1.100311		9,529.007
Fidelity VIP Growth Portfolio – Service Class 22		2010	$	0.814445	$	0.989998		584,535.865
Subaccount Inception Date May 1, 2001		2009	$	0.648553	$	0.814445		556,322.812
		2008	$	1.254358	$	0.648553		556,655.149
		2007	$	1.009247	$	1.254358		60,758.587
		2006	$	1.000000	$	1.009247		0.000
Fidelity VIP Mid Cap Portfolio – Service Class 2		2010	$	0.902106	$	1.138259		214,978.311
Subaccount Inception Date May 1, 2000		2009	$	0.657771	$	0.902106		51,172.575
		2008	$	1.109935	$	0.657771		37,156.794
		2007	$	0.980709	$	1.109935		36,006.338
		2006	$	1.000000	$	0.980709		85,734.239
Fidelity VIP Value Strategies Portfolio – Service Class 2		2010	$	0.807801	$	1.001557		166,472.922
Subaccount Inception Date May 1, 2002		2009	$	0.523790	$	0.807801		139,934.727
		2008	$	1.095776	$	0.523790		139,273.769
		2007	$	1.059093	$	1.095776		138,654.104
		2006	$	1.000000	$	1.059093		22,743.198
Franklin Income Securities Fund – Class 2		2010	$	0.888410	$	0.982343		100,543.100
Subaccount Inception Date May 1, 2007		2009	$	0.667633	$	0.888410		36,920.627
		2008	$	0.967204	$	0.667633		22,397.977
		2007	$	1.000000	$	0.967204		0.000
Mutual Shares Securities Fund – Class 2		2010	$	0.733813	$	0.800752		34,947.034
Subaccount Inception Date May 1, 2007		2009	$	0.593231	$	0.733813		14,373.909
		2008	$	0.961270	$	0.593231		7,293.280
		2007	$	1.000000	$	0.961270		0.000
Templeton Foreign Securities Fund – Class 2		2010	$	0.838401	$	0.891954		198,839.781
Subaccount Inception Date May 1, 2007		2009	$	0.623405	$	0.838401		77,842.934
		2008	$	1.065568	$	0.623405		54,588.797
		2007	$	1.000000	$	1.065568		16,655.770
Franklin Templeton VIP Founding Funds Allocation Fund – Class 4		2010	$	1.261486	$	1.362737		339,756.684
Subaccount Inception Date November 10, 2008		2009	$	0.989766	$	1.261486		16,095.124
		2008	$	1.000000	$	0.989766		4,061.764
Janus Aspen – Enterprise Portfolio – Service Shares		2010	$	0.976820	$	1.203252		27,830.964
Subaccount Inception Date October 9, 2000		2009	$	0.689114	$	0.976820		20,113.376
		2008	$	1.250883	$	0.689114		13,854.438
		2007	$	1.047121	$	1.250883		0.000
		2006	$	1.000000	$	1.047121		0.000

43

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.90%
Subaccount			Beginning AUV		Ending AUV		# Units
Janus Aspen – Worldwide Portfolio – Service Shares		2010	$	0.866567	$	0.982399		122,478.585
Subaccount Inception Date October 9, 2000		2009	$	0.642659	$	0.866567		22,656.253
		2008	$	1.186653	$	0.642659		15,124.558
		2007	$	1.105786	$	1.186653		10,721.978
		2006	$	1.000000	$	1.105786		811.404
MFS® New Discovery Series – Service Class		2010	$	0.957525	$	1.277416		55,536.861
Subaccount Inception Date May 1, 2002		2009	$	0.598887	$	0.957525		33,821.905
		2008	$	1.009127	$	0.598887		27,398.274
		2007	$	1.005768	$	1.009127		21,573.908
		2006	$	1.000000	$	1.005768		0.000
MFS® Total Return Series – Service Class		2010	$	0.959602	$	1.032426		89,738.373
Subaccount Inception Date May 1, 2002		2009	$	0.830613	$	0.959602		59,511.739
		2008	$	1.089681	$	0.830613		34,696.136
		2007	$	1.068454	$	1.089681		76,310.184
		2006	$	1.000000	$	1.068454		0.000
American Funds - Asset Allocation Fund – Class 2		2010	$	1.007699	$	1.109332		135,665.227
Subaccount inception date November 19, 2009		2009	$	0.989771	$	1.007699		0.000
American Funds - Bond Fund – Class 2		2010	$	0.993413	$	1.034670		45,533.387
Subaccount inception date November 19, 2009		2009	$	1.000892	$	0.993413		0.000
American Funds - Growth Fund – Class 2		2010	$	1.002561	$	1.164254		184,148.644
Subaccount inception date November 19, 2009		2009	$	0.986474	$	1.002561		0.000
American Funds - Growth-Income Fund – Class 2		2010	$	1.007946	$	1.098962		9,310.735
Subaccount inception date November 19, 2009		2009	$	0.986795	$	1.007946		0.000
American Funds - International Fund – Class 2		2010	$	0.980076	$	1.028362		17,940.390
Subaccount inception date November 19, 2009		2009	$	0.982905	$	0.980076		0.000
GE Investments Total Return Fund – Class 3		2010	$	1.003337	$	1.074749		32,381.232
Subaccount inceptiond date November 19, 2009		2009	$	0.988803	$	1.003337		0.000
	Year		1.85%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation - Conservative VP – Service Class		2010	$	1.351796	$	1.442811		1,441,980.287
Subaccount Inception Date May 1, 2002		2009	$	1.102289	$	1.351796		1,389,265.733
		2008	$	1.428490	$	1.102289		3,108,478.970
		2007	$	1.370797	$	1.428490		750,536.105
		2006	$	1.279140	$	1.370797		795,433.702
		2005	$	1.240597	$	1.279140		652,930.653
		2004	$	1.154543	$	1.240597		837,819.000
		2003	$	1.000000	$	1.154543		91,792.069
Transamerica Asset Allocation - Growth VP – Service Class		2010	$	1.374764	$	1.547531		801,078.750
Subaccount Inception Date May 1, 2002		2009	$	1.080868	$	1.374764		862,055.716
		2008	$	1.827501	$	1.080868		918,377.449
		2007	$	1.731070	$	1.827501		2,099,128
		2006	$	1.529348	$	1.731070		2,797,329.801
		2005	$	1.391625	$	1.529348		2,600,394.875
		2004	$	1.244419	$	1.391625		1,797,507.000
		2003	$	1.000000	$	1.244419		114,594.272

44

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.85%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation - Moderate VP – Service Class		2010	$	1.399939	$	1.513862		2,549,565.265
Subaccount Inception Date May 1, 2002		2009	$	1.129842	$	1.399939		2,927,695.870
		2008	$	1.559272	$	1.129842		2,778,429.817
		2007	$	1.474254	$	1.559272		4,847,202.025
		2006	$	1.350078	$	1.474254		6,181,321.693
		2005	$	1.283478	$	1.350078		6,524,698.939
		2004	$	1.176403	$	1.283478		4,739,171.000
		2003	$	1.000000	$	1.176403		317,015.129
Transamerica Asset Allocation - Moderate Growth VP – Service Class		2010	$	1.401701	$	1.546964		3,682,608.877
Subaccount Inception Date May 1, 2002		2009	$	1.116475	$	1.401701		4,604,784.050
		2008	$	1.695380	$	1.116475		2,957,775.925
		2007	$	1.605557	$	1.695380		10,704,039.339
		2006	$	1.440189	$	1.605557		10,992,735.381
		2005	$	1.336977	$	1.440189		10,034,902.509
		2004	$	1.203403	$	1.336977		4,343,551.000
		2003	$	1.000000	$	1.203403		232,944.756
Transamerica International Moderate Growth VP – Service Class		2010	$	0.869641	$	0.941300		31,415.447
Subaccount Inception Date May 1, 2006		2009	$	0.684863	$	0.869641		29,209.308
		2008	$	1.095389	$	0.684863		124,331.835
		2007	$	1.028417	$	1.095389		130,037.708
		2006	$	1.000000	$	1.028417		93,075.935
Transamerica BlackRock Large Cap Value VP – Service Class		2010	$	1.402016	$	1.516290		448,246.823
Subaccount Inception Date May 1, 2000		2009	$	1.255742	$	1.402016		333,482.898
		2008	$	1.939867	$	1.255742		22,491.403
		2007	$	1.893607	$	1.939867		59,243.401
		2006	$	1.653693	$	1.893607		56,904.033
		2005	$	1.455261	$	1.653693		52,368.991
		2004	$	1.256162	$	1.455261		28,995.000
		2003	$	1.000000	$	1.256162		26,650.249
Transamerica BlackRock Tactical Allocation VP – Service Class		2010	$	1.002778	$	1.095263		943,771.650
Subaccount inception date May 1, 2009		2009	$	0.993355	$	1.002778		0.000
Transamerica Clarion Global Real Estate Securities VP – Service Class		2010	$	1.716885	$	1.943633		66,078.001
Subaccount Inception Date May 1, 2002		2009	$	1.314716	$	1.716885		127,704.580
		2008	$	2.328830	$	1.314716		312,080.388
		2007	$	2.548171	$	2.328830		236,531.519
		2006	$	1.828678	$	2.548171		230,073.642
		2005	$	1.645498	$	1.828678		206,413.470
		2004	$	1.264938	$	1.645498		109,597.000
		2003	$	1.000000	$	1.264938		37,367.829
Transamerica JPMorgan Enhanced Index VP – Service Class		2010	$	1.202938	$	1.356539		36.264
Subaccount Inception Date May 1, 1997		2009	$	0.947439	$	1.202938		86.261
		2008	$	1.544595	$	0.947439		3,473.905
		2007	$	1.508426	$	1.544595		3,621.037
		2006	$	1.336293	$	1.508426		0.000
		2005	$	1.318774	$	1.336293		0.000
		2004	$	1.213316	$	1.318774		314.000
		2003	$	1.000000	$	1.213316		0.000
Transamerica JPMorgan Mid Cap Value VP – Service Class		2010	$	1.029234	$	1.241163		0.000
Subaccount inception date November 19, 2009		2009	$	0.985149	$	1.029234		0.000

45

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.85%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Jennison Growth VP– Service Class		2010	$	1.329797	$	1.462004		74,985.741
Subaccount Inception Date November 20, 1996		2009	$	0.962680	$	1.329797		17,124.333
		2008	$	1.559151	$	0.962680		17,133.870
		2007	$	1.427197	$	1.559151		27,065.555
		2006	$	1.430633	$	1.427197		27,563.986
		2005	$	1.283494	$	1.430633		24,006.880
		2004	$	1.200812	$	1.283494		11,056.000
		2003	$	1.000000	$	1.200812		8,327.698
Transamerica Morgan Stanley Capital Growth VP – Service Class(5)		2010	$	1.243782	$	1.551967		35,726.039
Subaccount Inception Date May 1, 2000		2009	$	0.993038	$	1.243782		32,522.992
		2008	$	1.593905	$	0.993038		29,920.193
		2007	$	1.611242	$	1.593905		48,411.315
		2006	$	1.387213	$	1.611242		98,177.319
		2005	$	1.361003	$	1.387213		64,093.796
		2004	$	1.272998	$	1.361003		44,627.000
		2003	$	1.000000	$	1.272998		13,422.446
Transamerica AEGON High Yield Bond VP – Service Class		2010	$	1.328042	$	1.462597		94,820.167
Subaccount Inception Date June 2, 1998		2009	$	0.921031	$	1.328042		145,091.252
		2008	$	1.258616	$	0.921031		51,754.940
		2007	$	1.260250	$	1.258616		70,255.619
		2006	$	1.160309	$	1.260250		70,870.020
		2005	$	1.164230	$	1.160309		99,861.865
		2004	$	1.082910	$	1.164230		57,283.000
		2003	$	1.000000	$	1.082910		258.009
Transamerica MFS International Equity VP – Service Class		2010	$	1.643632	$	1.780109		166,712.319
Subaccount Inception Date May 1, 2001		2009	$	1.265940	$	1.643632		204,656.760
		2008	$	2.000448	$	1.265940		284,315.751
		2007	$	1.871673	$	2.000448		310,229
		2006	$	1.550773	$	1.871673		316,385.235
		2005	$	1.404892	$	1.550773		341,070.528
		2004	$	1.252702	$	1.404892		121,373.000
		2003	$	1.000000	$	1.252702		20,524.116
Transamerica PIMCO Total Return VP – Service Class		2010	$	1.217797	$	1.278614		904,718.117
Subaccount Inception Date May 1, 2002		2009	$	1.071547	$	1.217797		778,935.300
		2008	$	1.126043	$	1.071547		520,577.509
		2007	$	1.054181	$	1.126043		697,679.292
		2006	$	1.033347	$	1.054181		760,997.455
		2005	$	1.031445	$	1.033347		754,727.817
		2004	$	1.008067	$	1.031445		493,094.000
		2003	$	1.000000	$	1.008067		146,973.450
Transamerica T. Rowe Price Small Cap VP – Service Class		2010	$	1.438085	$	1.892902		72,638.221
Subaccount Inception Date May 1, 2000		2009	$	1.058835	$	1.438085		74,521.628
		2008	$	1.695885	$	1.058835		35,655.610
		2007	$	1.580826	$	1.695885		65,804.264
		2006	$	1.557972	$	1.580826		103,002.948
		2005	$	1.437264	$	1.557972		85,387.274
		2004	$	1.329429	$	1.437264		63,248.000
		2003	$	1.000000	$	1.329429		3,031.830

46

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.85%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica WMC Diversified Equity VP – Service Class(6)		2010	$	1.035091	$	1.184469		377,962.200
Subaccount Inception Date May 1, 2000		2009	$	0.824621	$	1.035091		418,135.742
		2008	$	1.494943	$	0.824621		134,062.050
		2007	$	1.324353	$	1.494943		189,012.209
		2006	$	1.138715	$	1.324353		200,512.614
		2005	$	1.081523	$	1.138715		144,796.803
		2004	$	1.203554	$	1.081523		86,454.000
		2003	$	1.000000	$	1.203554		21,173.319
Transamerica Efficient Markets VP – Service Class		2010	$	1.199258	$	1.323210		1,580.372
Subaccount Inception Date November 10, 2008		2009	$	1.036345	$	1.199258		0.000
		2008	$	1.000000	$	1.036345		0.000
Transamerica Multi-Managed Balanced VP – Service Class(1)		2010	$	1.228099	$	1.493791		37,481.900
Subaccount Inception Date May 1, 2002		2009	$	0.993199	$	1.228099		38,694.956
		2008	$	1.500384	$	0.993199		5,178.380
		2007	$	1.347980	$	1.500384		0.000
		2006	$	1.262511	$	1.347980		0.000
		2005	$	1.192883	$	1.262511		0.000
		2004	$	1.095821	$	1.192883		841.000
		2003	$	1.000000	$	1.095821		0.000
Transamerica AllianceBernstein Dynamic Allocation VP – Service Class(7)		2010	$	1.305220	$	1.398774		35,674.115
Subaccount Inception Date May 1, 2002		2009	$	1.013496	$	1.305220		128,352.073
		2008	$	1.638564	$	1.013496		78,139.845
		2007	$	1.410994	$	1.638564		194,281.296
		2006	$	1.298714	$	1.410994		131,920.368
		2005	$	1.277435	$	1.298714		127,429.404
		2004	$	1.151505	$	1.277435		28,209.000
		2003	$	1.000000	$	1.151505		0.000
Transamerica WMC Diversified Growth VP – Service Class		2010	$	1.269462	$	1.464311		192,877.592
Subaccount Inception Date May 1, 2000		2009	$	1.003093	$	1.269462		220,800.963
		2008	$	1.898270	$	1.003093		217,396.105
		2007	$	1.666241	$	1.898270		321,611.411
		2006	$	1.565729	$	1.666241		342,622.915
		2005	$	1.371372	$	1.565729		398,210.114
		2004	$	1.208109	$	1.371372		229,870.000
		2003	$	1.000000	$	1.208109		18,765.793
Transamerica Morgan Stanley Growth Opportunities VP – Service Class(8)		2010	$	1.564957	$	2.078714		26,556.532
Subaccount Inception Date May 1, 2001		2009	$	1.167543	$	1.564957		21,180.228
		2008	$	2.017902	$	1.167543		18,696.996
		2007	$	1.674665	$	2.017902		30,469.855
		2006	$	1.625938	$	1.674665		32,633.252
		2005	$	1.428382	$	1.625938		172,297.594
		2004	$	1.248740	$	1.428382		32,712.000
		2003	$	1.000000	$	1.248740		0.000
Transamerica AEGON Money Market VP – Service Class(2)		2010	$	1.026507	$	1.007901		159,345.425
Subaccount Inception Date July 5, 1994		2009	$	1.045395	$	1.026507		253,903.310
		2008	$	1.042244	$	1.045395		1,313,697.694
		2007	$	1.013334	$	1.042244		181,403.169
		2006	$	0.987867	$	1.013334		195,776.576
		2005	$	0.980329	$	0.987867		166,889.442
		2004	$	0.991036	$	0.980329		356,750.000
		2003	$	1.000000	$	0.991036		88,816.643
Transamerica Systematic Small/Mid Cap Value VP – Service Class(9)		2010	$	0.925057	$	1.181205		2,541.961
Subaccount Inception Date July 5, 1994		2009	$	0.659317	$	0.925057		1,751.480
		2008	$	1.000000	$	0.659317		0.000

47

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.85%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010	$	1.139846	$	1.166405		104,600.998
Subaccount Inception Date August 3, 1994		2009	$	1.114167	$	1.139846		233,240.153
		2008	$	1.056501	$	1.114167		176,497.796
		2007	$	1.017329	$	1.056501		35,048
		2006	$	1.005345	$	1.017329		32,788.018
		2005	$	1.004005	$	1.005345		42,787.901
		2004	$	0.993783	$	1.004005		369,479.000
		2003	$	1.000000	$	0.993783		443,131.549
Transamerica Index 35 VP – Service Class		2010	$	0.997845	$	1.072050		0.000
Subaccount inception date November 19, 2009		2009	$	0.999950	$	0.997845		0.000
Transamerica Index 50 VP – Service Class		2010	$	0.933525	$	1.014580		5,821.466
Subaccount Inception Date May 1, 2008		2009	$	0.815922	$	0.933525		3,823.539
		2008	$	1.000000	$	0.815922		5,656.596
Transamerica Index 75 VP – Service Class		2010	$	0.870910	$	0.966294		0.000
Subaccount Inception Date May 1, 2008		2009	$	0.720097	$	0.870910		0.000
		2008	$	1.000000	$	0.720097		0.000
Transamerica Index 100 VP – Service Class		2010	$	1.023790	$	1.150020		0.000
Subaccount inception date November 19, 2009		2009	$	0.999950	$	1.023790		0.000
Transamerica Morgan Stanley Active International Allocation VP – Service Class		2010 2009	$ $	1.678627 1.360375	$ $	1.783352 1.678627		46,478.427 110,162.510
Subaccount Inception Date July 5, 1994		2008	$	2.273309	$	1.360375		198,001.852
		2007	$	2.008770	$	2.273309		253,267.944
		2006	$	1.660766	$	2.008770		257,446.379
		2005	$	1.488758	$	1.660766		118,880.857
		2004	$	1.310431	$	1.488758		95,142.000
		2003	$	1.000000	$	1.310431		0.000
Transamerica Multi Managed Large Cap Core VP – Service Class		2010	$	1.269687	$	1.481932		255,881.049
Subaccount Inception Date July 5, 1994		2009	$	0.891317	$	1.269687		329,807.442
		2008	$	1.570851	$	0.891317		4,098.714
		2007	$	1.468712	$	1.570851		8,262.283
		2006	$	1.359065	$	1.468712		16,397.513
		2005	$	1.268429	$	1.359065		14,083.969
		2004	$	1.148114	$	1.268429		13,061.000
		2003	$	1.000000	$	1.148114		19,119.399
Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class		2010	$	1.401446	$	1.838075		21,569.309
Subaccount Inception Date May 1, 2001		2009	$	0.891443	$	1.401446		17,735.337
		2008	$	1.695300	$	0.891443		17,798.515
		2007	$	1.412676	$	1.695300		33,400.380
		2006	$	1.312834	$	1.412676		30,138.970
		2005	$	1.245948	$	1.312834		24,791.226
		2004	$	1.186979	$	1.245948		27,341.000
		2003	$	1.000000	$	1.186979		0.000
PAM Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010 2009	$ $	1.139846 1.114167	$ $	1.166405 1.139846		578,648.126 1,304,264.157
Subaccount Inception Date November 3, 2003		2008	$	1.056501	$	1.114167		2,882,925.461
		2007	$	1.017329	$	1.056501		0.000
		2006	$	1.005345	$	1.017329		0.00
		2005	$	1.004005	$	1.005345		3,676.282
		2004	$	0.993783	$	1.004005		0.000
		2003	$	1.000000	$	0.993783		0.000

48

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.85%
Subaccount			Beginning AUV		Ending AUV		# Units
Invesco V.I. Basic Value Fund – Series II Shares		2010	$	1.096316	$	1.151156		91,561.436
Subaccount Inception Date May 1, 2002		2009	$	0.755790	$	1.096316		98,443.121
		2008	$	1.600638	$	0.755790		81,568.115
		2007	$	1.608483	$	1.600638		102,642.623
		2006	$	1.450459	$	1.608483		106,238.928
		2005	$	1.401161	$	1.450459		110,422.322
		2004	$	1.287590	$	1.401161		66,607.000
		2003	$	1.000000	$	1.287590		19,839.889
Invesco V.I. Capital Appreciation Fund – Series II Shares		2010	$	1.037518	$	1.173575		3,699.279
Subaccount Inception Date May 1, 2002		2009	$	0.875360	$	1.037518		2,141.441
		2008	$	1.554080	$	0.875360		2,035.270
		2007	$	1.416764	$	1.554080		3,848.534
		2006	$	1.360493	$	1.416764		3,867.887
		2005	$	1.276124	$	1.360493		3,890.239
		2004	$	1.222384	$	1.276124		6,825.000
		2003	$	1.000000	$	1.222384		0.000
AllianceBernstein Balanced Wealth Strategy Portfolio – Class B		2010	$	1.234764	$	1.334562		0.00
Subaccount Inception Date November 10, 2008		2009	$	1.012506	$	1.234764		0.000
		2008	$	1.000000	$	1.012506		0.000
AllianceBernstein Growth and Income Portfolio – Class B		2010	$	1.119343	$	1.239677		10,292.086
Subaccount Inception Date May 1, 2001		2009	$	0.947287	$	1.119343		9,876.554
		2008	$	1.626993	$	0.947287		17,221.640
		2007	$	1.580442	$	1.626993		29,994.514
		2006	$	1.375912	$	1.580442		31,538.167
		2005	$	1.339719	$	1.375912		33,849.928
		2004	$	1.226890	$	1.339719		50,850.000
		2003	$	1.000000	$	1.226890		0.000
AllianceBernstein Large Cap Growth Portfolio – Class B		2010	$	1.190673	$	1.283995		1,726.414
Subaccount Inception Date May 1, 2001		2009	$	0.884499	$	1.190673		2,942.286
		2008	$	1.497107	$	0.884499		6,365.051
		2007	$	1.342231	$	1.497107		7,911.832
		2006	$	1.375827	$	1.342231		12,350.799
		2005	$	1.220101	$	1.375827		8,714.665
		2004	$	1.147011	$	1.220101		8,114.000
		2003	$	1.000000	$	1.147011		4,850.688
Fidelity VIP Balanced Portfolio – Service Class 2		2010	$	0.901874	$	1.042736		0.000
Subaccount Inception Date May 1, 2008		2009	$	0.664068	$	0.901874		0.000
		2008	$	1.000000	$	0.664068		0.000
Fidelity VIP Contrafund ® Portfolio – Service Class 2		2010	$	1.509722	$	1.733237		128,116.541
Subaccount Inception Date May 1, 2000		2009	$	1.135064	$	1.509722		113,040.251
		2008	$	2.017419	$	1.135064		126,937.425
		2007	$	1.751828	$	2.017419		181,822.799
		2006	$	1.601104	$	1.751828		190,763.830
		2005	$	1.397916	$	1.601104		197,242.139
		2004	$	1.236415	$	1.397916		180,379.000
		2003	$	1.000000	$	1.236415		0.000
Fidelity VIP Equity-Income Portfolio – Service Class 2		2010	$	1.191040	$	1.343865		73,702.872
Subaccount Inception Date May 1, 2000		2009	$	0.933967	$	1.191040		80,230.223
		2008	$	1.663539	$	0.933967		94,031.375
		2007	$	1.673199	$	1.663539		121,345.711
		2006	$	1.420893	$	1.673199		213,825.555
		2005	$	1.370739	$	1.420893		82,868.718
		2004	$	1.255168	$	1.370739		70,041.000
		2003	$	1.000000	$	1.255168		21,204.194

49

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.85%
Subaccount			Beginning AUV		Ending AUV		# Units
Fidelity VIP Growth Portfolio – Service Class 2		2010	$	1.101766	$	1.339906		4,060.978
Subaccount Inception Date May 1, 2001		2009	$	0.876916	$	1.101766		2,478.447
		2008	$	1.695195	$	0.876916		15,513.409
		2007	$	1.363271	$	1.695195		40,686.806
		2006	$	1.302806	$	1.363271		36,573.526
		2005	$	1.257634	$	1.302806		42,516.277
		2004	$	1.242184	$	1.257634		26,990.000
		2003	$	1.000000	$	1.242184		0.000
Fidelity VIP Mid Cap Portfolio – Service Class 2		2010	$	2.003663	$	2.529386		70,900.993
Subaccount Inception Date May 1, 2000		2009	$	1.460246	$	2.003663		76,735.336
		2008	$	2.462827	$	1.460246		50,547.506
		2007	$	2.175025	$	2.462827		110,217.532
		2006	$	1.970736	$	2.175025		124,801.500
		2005	$	1.700679	$	1.970736		152,563.628
		2004	$	1.389595	$	1.700679		129,210.000
		2003	$	1.000000	$	1.389595		42,306.790
Fidelity VIP Value Strategies Portfolio – Service Class 2		2010	$	1.442325	$	1.789130		127,357.896
Subaccount Inception Date May 1, 2002		2009	$	0.934769	$	1.442325		133,789.313
		2008	$	1.954589	$	0.934769		117,525.449
		2007	$	1.888212	$	1.954589		160,714.335
		2006	$	1.657680	$	1.888212		166,765.801
		2005	$	1.648256	$	1.657680		192,080.837
		2004	$	1.474735	$	1.648256		123,665.000
		2003	$	1.000000	$	1.474735		24,005.046
Franklin Income Securities Fund – Class 2		2010	$	0.889558	$	0.984094		224,146.760
Subaccount Inception Date May 1, 2007		2009	$	0.668178	$	0.889558		183,588.222
		2008	$	0.967518	$	0.668178		131,735.594
		2007	$	1.000000	$	0.967518		0.000
Mutual Shares Securities Fund – Class 2		2010	$	0.734780	$	0.802198		0.000
Subaccount Inception Date May 1, 2007		2009	$	0.593718	$	0.734780		4,996.359
		2008	$	0.961589	$	0.593718		6,344.889
		2007	$	1.000000	$	0.961589		12,773.602
Templeton Foreign Securities Fund – Class 2		2010	$	0.839500	$	0.893548		176,017.111
Subaccount Inception Date May 1, 2007		2009	$	0.623923	$	0.839500		185,896.399
		2008	$	1.065918	$	0.623923		702.992
		2007	$	1.000000	$	1.065918		13,322.162
Franklin Templeton VIP Founding Funds Allocation Fund – Class 4		2010	$	1.262175	$	1.364151		352.874
Subaccount Inception Date November 10, 2008		2009	$	0.989834	$	1.262175		1,235.871
		2008	$	1.000000	$	0.989834		0.000
Janus Aspen – Enterprise Portfolio – Service Shares		2010	$	1.694991	$	2.088918		3,067.009
Subaccount Inception Date October 9, 2000		2009	$	1.195174	$	1.694991		1,779.275
		2008	$	2.168407	$	1.195174		1,691.405
		2007	$	1.814283	$	2.168407		3,194.941
		2006	$	1.630786	$	1.814283		3,210.449
		2005	$	1.482557	$	1.630786		3,229.563
		2004	$	1.253410	$	1.482557		789.000
		2003	$	1.000000	$	1.253410		0.000

50

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.85%
Subaccount			Beginning AUV		Ending AUV		# Units
Janus Aspen – Worldwide Portfolio – Service Shares		2010	$	1.196010	$	1.356551		12,730.282
Subaccount Inception Date October 9, 2000		2009	$	0.886546	$	1.196010		99,830.825
		2008	$	1.636153	$	0.886546		18,788.535
		2007	$	1.523906	$	1.636153		26,945.989
		2006	$	1.315978	$	1.523906		3,955.029
		2005	$	1.269574	$	1.315978		3,981.481
		2004	$	1.237113	$	1.269574		5,092.000
		2003	$	1.000000	$	1.237113		0.000
MFS ® New Discovery Series – Service Class		2010	$	1.444279	$	1.927735		15,728.653
Subaccount Inception Date May 1, 2002		2009	$	0.902888	$	1.444279		15,951.454
		2008	$	1.520616	$	0.902888		19,241.726
		2007	$	1.514812	$	1.520616		36,030.660
		2006	$	1.366114	$	1.514812		33,089.842
		2005	$	1.324659	$	1.366114		33,972.331
		2004	$	1.270349	$	1.324659		23,899.000
		2003	$	1.000000	$	1.270349		7,871.853
MFS ® Total Return Series – Service Class		2010	$	1.214297	$	1.307097		119,349.657
Subaccount Inception Date May 1, 2002		2009	$	1.050550	$	1.214297		98,407.955
		2008	$	1.377544	$	1.050550		113,379.340
		2007	$	1.350032	$	1.377544		150,245.799
		2006	$	1.231764	$	1.350032		156,660.163
		2005	$	1.222715	$	1.231764		130,400.030
		2004	$	1.121697	$	1.222715		125,834.000
		2003	$	1.000000	$	1.121697		8,915.064
	Year		1.70%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation – Conservative VP – Service Class		2010	$	1.022462	$	1.092908		35,658,889.831
Subaccount Inception Date May 1, 2002		2009	$	0.832508	$	1.022462		32,831,990.740
		2008	$	1.077281	$	0.832508		27,859,183.695
		2007	$	1.032248	$	1.077281		9,911,600.449
		2006	$	1.000000	$	1.032248		3,970,929.972
Transamerica Asset Allocation – Growth VP – Service Class		2010	$	0.834891	$	0.941201		1,928,763.917
Subaccount Inception Date May 1, 2002		2009	$	0.655444	$	0.834891		3,977,025.575
		2008	$	1.106560	$	0.655444		4,730,577.793
		2007	$	1.046608	$	1.106560		4,287,595.571
		2006	$	1.000000	$	1.046608		995,971.343
Transamerica Asset Allocation – Moderate VP – Service Class		2010	$	0.990521	$	1.072710		55,315,720.785
Subaccount Inception Date May 1, 2002		2009	$	0.798240	$	0.990521		53,604,200.097
		2008	$	1.100000	$	0.798240		47,185,575.489
		2007	$	1.038479	$	1.100000		32,989,878.993
		2006	$	1.000000	$	1.038479		10,651,244.167
Transamerica Asset Allocation – Moderate Growth VP – Service Class		2010	$	0.914957	$	1.011264		68,479,192.401
Subaccount Inception Date May 1, 2002		2009	$	0.727702	$	0.914957		72,540,743.826
		2008	$	1.103389	$	0.727702		53,967,612.228
		2007	$	1.043385	$	1.103389		41,359,455.916
		2006	$	1.000000	$	1.043385		15,858,883.434
Transamerica International Moderate Growth VP – Service Class		2010	$	0.874362	$	0.947809		11,013,955.245
Subaccount Inception Date May 1, 2006		2009	$	0.687573	$	0.874362		12,365,816.891
		2008	$	1.098098	$	0.687573		8,713,333.772
		2007	$	1.029432	$	1.098098		6,501,343.024
		2006	$	1.000000	$	1.029432		924,620.432

51

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.70%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica BlackRock Global Allocation VP – Service Class		2010	$	1.201597	$	1.295746		8,245,776.242
Subaccount inception date May 1, 2009		2009	$	1.000000	$	1.201597		3,596,173.450
Transamerica BlackRock Large Cap Value VP – Service Class		2010	$	0.791956	$	0.857778		3,546,773.433
Subaccount Inception Date May 1, 2000		2009	$	0.708289	$	0.791956		2,333,334.998
		2008	$	1.092545	$	0.708289		1,122,070.819
		2007	$	1.064914	$	1.092545		983,966.601
		2006	$	1.000000	$	1.064914		61,452.322
Transamerica BlackRock Tactical Allocation VP – Service Class		2010	$	1.205357	$	1.318472		2,147,694.970
Subaccount inception date May 1, 2009		2009	$	1.000000	$	1.205357		403,876.282
Transamerica Clarion Global Real Estate Securities VP – Service Class		2010	$	0.836507	$	0.948374		627,682.389
Subaccount Inception Date May 1, 2002		2009	$	0.639615	$	0.836507		393,492.088
		2008	$	1.131291	$	0.639615		429,111.314
		2007	$	1.235999	$	1.131291		383,065.961
		2006	$	1.000000	$	1.235999		47,044.134
Transamerica Foxhall Emerging Markets/Pacific Rim VP – Service Class		2010	$	1.009087	$	1.025727		1,113,409.652
Subaccount inception date November 19, 2009		2009	$	0.990712	$	1.009087		67,253.795
Transamerica Foxhall Global Conservative VP – Service Class		2010	$	0.983383	$	0.908012		451,326.437
Subaccount inception date November 19, 2009		2009	$	0.995066	$	0.983383		111,904.036
Transamerica Foxhall Global Growth VP – Service Class		2010	$	1.006242	$	1.042734		703,963.090
Subaccount inception date November 19, 2009		2009	$	0.988965	$	1.006242		3,706.193
Transamerica Foxhall Global Commodities & Hard Asset VP – Service Class(4)		2010	$	0.985611	$	0.999198		619,896.171
Subaccount inception date November 19, 2009		2009	$	0.986569	$	0.985611		54,170.345
Transamerica Hanlon Balanced VP – Service Class		2010	$	1.020435	$	0.968645		3,241,718.872
Subaccount inception Date November 19, 2009		2009	$	0.998157	$	1.020435		131,413.343
Transamerica Hanlon Growth VP – Service Class		2010	$	1.021103	$	0.996956		478,888.217
Subaccount Inception date November 19, 2009		2009	$	0.996395	$	1.021103		56,168.869
Transamerica Hanlon Growth and Income VP – Service Class		2010	$	1.022185	$	0.983823		873,012.102
Subaccount inception date November 19, 2009		2009	$	0.997263	$	1.022185		0.000
Transamerica Hanlon Managed Income VP – Service Class		2010	$	1.003452	$	0.987834		19,555,122.947
Subaccount inception date November 19, 2009		2009	$	0.999954	$	1.003452		1,210,008.409
Transamerica JPMorgan Mid Cap Value VP – Service Class		2010	$	1.029410	$	1.243220		179,254.909
Subaccount inception date November 19, 2009		2009	$	0.985153	$	1.029410		0.000
Transamerica JPMorgan Enhanced Index VP – Service Class		2010	$	0.874132	$	0.987201		376,129.406
Subaccount Inception Date May 1, 1997		2009	$	0.687459	$	0.874132		347,815.614
		2008	$	1.119092	$	0.687459		345,434.301
		2007	$	1.091266	$	1.119092		6,458.304
		2006	$	1.000000	$	1.091266		3,308.600
Transamerica Jennison Growth VP – Service Class		2010	$	0.941418	$	1.036536		955,549.698
Subaccount Inception Date November 20, 1996		2009	$	0.680522	$	0.941418		208,693.644
		2008	$	1.100528	$	0.680522		140,639.638
		2007	$	1.005889	$	1.100528		133,380
		2006	$	1.000000	$	1.005889		25,692.508
Transamerica Morgan Stanley Capital Growth VP – Service Class(5)		2010	$	0.836363	$	1.045138		258,131.020
Subaccount Inception Date May 1, 2000		2009	$	0.666777	$	0.836363		221,575.875
		2008	$	1.068640	$	0.666777		218,649.796
		2007	$	1.078664	$	1.068640		181,435.623
		2006	$	1.000000	$	1.078664		93,244.423

52

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.70%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica AEGON High Yield Bond VP – Service Class		2010	$	1.120823	$	1.236198		1,459,677.573
Subaccount Inception Date June 2, 1998		2009	$	0.776180	$	1.120823		863,904.686
		2008	$	1.059115	$	0.776180		408,612.174
		2007	$	1.058929	$	1.059115		385,946.596
		2006	$	1.000000	$	1.058929		145,668.239
Transamerica MFS International Equity VP – Service Class		2010	$	0.934669	$	1.013763		780,952.125
Subaccount Inception Date May 1, 2001		2009	$	0.718825	$	0.934669		572,957.821
		2008	$	1.134210	$	0.718825		499,722.780
		2007	$	1.059617	$	1.134210		433,370.442
		2006	$	1.000000	$	1.059617		86,710.093
Transamerica PIMCO Total Return VP – Service Class		2010	$	1.203194	$	1.265142		10,865,096.796
Subaccount Inception Date May 1, 2002		2009	$	1.057139	$	1.203194		6,723,271.642
		2008	$	1.109256	$	1.057139		2,498,454.315
		2007	$	1.036920	$	1.109256		547,341.603
		2006	$	1.000000	$	1.036920		66,158.083
Transamerica ProFunds UltraBear Fund – Service Class OAM		2010	$	0.561600	$	0.404424		1,246,374.161
Subaccount inception date May 1, 2009		2009	$	1.000000	$	0.561600		36,339.146
Transamerica T. Rowe Price Small Cap VP – Service Class		2010	$	0.864603	$	1.139719		531,073.357
Subaccount Inception Date May 1, 2000		2009	$	0.635650	$	0.864603		525,139.979
		2008	$	1.016578	$	0.635650		290,417.279
		2007	$	0.946210	$	1.016578		217,418.369
		2006	$	1.000000	$	0.946210		7,155.051
Transamerica WMC Diversified Equity VP – Service Class(6)		2010	$	0.843895	$	0.967101		1,421,960.727
Subaccount Inception Date May 1, 2000		2009	$	0.671308	$	0.843895		1,137,473.926
		2008	$	1.215207	$	0.671308		128,156.594
		2007	$	1.074942	$	1.215207		112,008.614
		2006	$	1.000000	$	1.074942		0.000
Transamerica Efficient Markets VP – Service Class		2010	$	1.201275	$	1.327402		381,268.958
Subaccount Inception Date November 10, 2008		2009	$	1.036556	$	1.201275		78,807.415
		2008	$	1.000000	$	1.036556		0.000
Transamerica Multi-Managed Balanced VP – Service Class(1)		2010	$	0.938809	$	1.143593		2,910,050.693
Subaccount Inception Date May 1, 2002		2009	$	0.758114	$	0.938809		1,041,087.087
		2008	$	1.143549	$	0.758114		446,753.985
		2007	$	1.025873	$	1.143549		306,556.463
		2006	$	1.000000	$	1.025873		20,925.563
Transamerica AllianceBernstein Dynamic Allocation VP– Service Class(7)		2010	$	0.920995	$	0.988475		648,000.076
Subaccount Inception Date May 1, 2002		2009	$	0.714117	$	0.920995		424,103.009
		2008	$	1.152836	$	0.714117		247,413.176
		2007	$	0.991257	$	1.152836		283,945.085
		2006	$	1.000000	$	0.991257		38,696.224
Transamerica WMC Diversified Growth VP – Service Class		2010	$	0.773299	$	0.893304		180,543.034
Subaccount Inception Date May 1, 2000		2009	$	0.610130	$	0.773299		99,925.063
		2008	$	1.152912	$	0.610130		134,522.022
		2007	$	1.010483	$	1.152912		90,425.642
		2006	$	1.000000	$	1.010483		8,971.277
Transamerica Morgan Stanley Growth Opportunities VP – Service Class(8)		2010	$	0.900335	$	1.197677		548,660.805
Subaccount Inception Date May 1, 2001		2009	$	0.670705	$	0.900335		354,237.674
		2008	$	1.157481	$	0.670705		37,875.860
		2007	$	0.959175	$	1.157481		38,563.024
		2006	$	1.000000	$	0.959175		38,378.572

53

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.70%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica AEGON Money Market VP – Service Class(2)		2010	$	1.037558	$	1.020273		5,034,841.530
Subaccount Inception Date July 5, 1994		2009	$	1.055058	$	1.037558		5,206,256.150
		2008	$	1.050319	$	1.055058		10,380,130.853
		2007	$	1.019675	$	1.050319		2,769,227.153
		2006	$	1.000000	$	1.019675		469,138.652
Transamerica Systematic Small/Mid Cap Value VP – Service Class(9)		2010	$	0.927726	$	1.186356		857,646.325
Subaccount Inception Date July 5, 1994		2009	$	0.660241	$	0.927726		350,757.384
		2008	$	1.000000	$	0.660241		253,859.108
Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010	$	1.168061	$	1.197044		5,682,475.784
Subaccount Inception Date August 3, 1994		2009	$	1.140067	$	1.168061		3,456,286.339
		2008	$	1.079456	$	1.140067		1,422,883.555
		2007	$	1.037892	$	1.079456		115,935.315
		2006	$	1.000000	$	1.037892		7,992.854
Transamerica Index 35 VP – Service Class		2010	$	0.998015	$	1.073814		715,591.901
Subaccount inception date November 19, 2009		2009	$	0.999954	$	0.998015		0.000
Transamerica Index 50 VP – Service Class		2010	$	0.935839	$	1.018584		613,465.532
Subaccount Inception Date May 1, 2008		2009	$	0.816736	$	0.935839		748,782.638
		2008	$	1.000000	$	0.816736		266,216.046
Transamerica Index 75 VP – Service Class		2010	$	0.873054	$	0.970105		6,041,137.262
Subaccount Inception Date May 1, 2008		2009	$	0.720815	$	0.873054		5,259,673.885
		2008	$	1.000000	$	0.720815		779,065.245
Transamerica Index 100 VP – Service Class		2010	$	1.023968	$	1.151914		112,231.700
Subaccount inception date November 19, 2009		2009	$	0.999954	$	1.023968		2,721.925
Transamerica Morgan Stanley Active International Allocation VP – Service Class		2010	$	0.886892	$	0.943609		657,748.542
		2009	$	0.717685	$	0.886892		1,005,468.530
Subaccount Inception Date July 5, 1994		2008	$	1.197548	$	0.717685		785,316.171
		2007	$	1.056631	$	1.197548		669,723.474
		2006	$	1.000000	$	1.056631		137,538.568
Transamerica Multi Managed Large Cap Core VP – Service Class		2010	$	0.921209	$	1.076780		1,413,200.966
Subaccount Inception Date July 5, 1994		2009	$	0.645728	$	0.921209		1,143,330.242
		2008	$	1.136350	$	0.645728		658,843.227
		2007	$	1.060888	$	1.136350		45,350.521
		2006	$	1.000000	$	1.060888		0.000
Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class		2010	$	0.989658	$	1.299896		425,696.761
Subaccount Inception Date May 1, 2001		2009	$	0.628577	$	0.989658		275,521.723
		2008	$	1.193621	$	0.628577		167,256.060
		2007	$	0.993158	$	1.193621		75,807.290
		2006	$	1.000000	$	0.993158		5,351.076
PAM Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010 2009	$ $	1.168061 1.140067	$ $	1.197044 1.168061		209,616.765 366,923.232
Subaccount Inception Date November 3, 2003		2008	$	1.079456	$	1.140067		575,634.300
		2007	$	1.037892	$	1.079456		0.000
		2006	$	1.000000	$	1.037892		0.000
Invesco V.I. Basic Value Fund – Series II Shares		2010	$	0.726689	$	0.764178		181,355.266
Subaccount Inception Date May 1, 2002		2009	$	0.500229	$	0.726689		148,627.255
		2008	$	1.057839	$	0.500229		7,197.074
		2007	$	1.061450	$	1.057839		0.000
		2006	$	1.000000	$	1.061450		0.000

54

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.70%
Subaccount			Beginning AUV		Ending AUV		# Units
Invesco V.I. Capital Appreciation Fund – Series II Shares		2010	$	0.724882	$	0.821152		98,888.760
Subaccount Inception Date May 1, 2002		2009	$	0.610681	$	0.724882		107,629.898
		2008	$	1.082576	$	0.610681		79,884.701
		2007	$	0.985459	$	1.082576		48,043.714
		2006	$	1.000000	$	0.985459		0.000
AllianceBernstein Balanced Wealth Strategy Portfolio – Class B		2010	$	1.236838	$	1.338773		930,865.780
Subaccount Inception Date November 10, 2008		2009	$	1.012714	$	1.236838		240,848.455
		2008	$	1.000000	$	1.012714		0.000
AllianceBernstein Growth and Income Portfolio – Class B		2010	$	0.786609	$	0.872462		526,633.872
Subaccount Inception Date May 1, 2001		2009	$	0.664713	$	0.786609		366,631.751
		2008	$	1.139956	$	0.664713		382,491.275
		2007	$	1.105703	$	1.139956		384,039.487
		2006	$	1.000000	$	1.105703		14,831.304
AllianceBernstein Large Cap Growth Portfolio – Class B		2010	$	0.881799	$	0.952317		248,372.954
Subaccount Inception Date May 1, 2001		2009	$	0.654092	$	0.881799		138,678.643
		2008	$	1.105472	$	0.654092		62,219.359
		2007	$	0.989629	$	1.105472		74,296.581
		2006	$	1.000000	$	0.989629		57,798.775
Fidelity VIP Balanced Portfolio – Service Class 2		2010	$	0.904091	$	1.046837		1,230,864.929
Subaccount Inception Date May 1, 2008		2009	$	0.664725	$	0.904091		917,997.573
		2008	$	1.000000	$	0.664725		64,280.341
Fidelity VIP Contrafund ® Portfolio – Service Class 2		2010	$	0.889158	$	1.022302		2,581,611.385
Subaccount Inception Date May 1, 2000		2009	$	0.667524	$	0.889158		1,932,025.044
		2008	$	1.184684	$	0.667524		1,780,089.552
		2007	$	1.027191	$	1.184684		1,228,445.617
		2006	$	1.000000	$	1.027191		242,225.224
Fidelity VIP Equity-Income Portfolio – Service Class 2		2010	$	0.787750	$	0.890139		406,635.633
Subaccount Inception Date May 1, 2000		2009	$	0.616816	$	0.787750		214,300.604
		2008	$	1.097011	$	0.616816		262,554.040
		2007	$	1.101740	$	1.097011		232,994.320
		2006	$	1.000000	$	1.101740		0.000
Fidelity VIP Growth Portfolio – Service Class 2		2010	$	0.820340	$	0.999116		305,422.163
Subaccount Inception Date May 1, 2001		2009	$	0.651963	$	0.820340		363,435.114
		2008	$	1.258464	$	0.651963		298,156.996
		2007	$	1.010566	$	1.258464		82,574.695
		2006	$	1.000000	$	1.010566		36,599.623
Fidelity VIP Mid Cap Portfolio – Service Class 2		2010	$	0.908666	$	1.148775		1,390,051.363
Subaccount Inception Date May 1, 2000		2009	$	0.661245	$	0.908666		1,013,808.216
		2008	$	1.113602	$	0.661245		733,394.285
		2007	$	0.982004	$	1.113602		637,448.174
		2006	$	1.000000	$	0.982004		110,511.782
Fidelity VIP Value Strategies Portfolio – Service Class 2		2010	$	0.813664	$	1.010795		455,354.642
Subaccount Inception Date May 1, 2002		2009	$	0.526557	$	0.813664		440,228.339
		2008	$	1.099391	$	0.526557		414,443.851
		2007	$	1.060474	$	1.099391		159,724.870
		2006	$	1.000000	$	1.060474		21,771.278
Franklin Income Securities Fund – Class 2		2010	$	0.893086	$	0.989452		2,747,692.055
Subaccount Inception Date May 1, 2007		2009	$	0.669833	$	0.893086		1,900,072.534
		2008	$	0.968475	$	0.669833		1,354,399.684
		2007	$	1.000000	$	0.968475		656,829.077

55

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.70%
Subaccount			Beginning AUV		Ending AUV		# Units
Mutual Shares Securities Fund – Class 2		2010	$	0.737697	$	0.806583		1,104,944.870
Subaccount Inception Date May 1, 2007		2009	$	0.595191	$	0.737697		679,484.895
		2008	$	0.962542	$	0.595191		677,267.432
		2007	$	1.000000	$	0.962542		442,275.796
Templeton Foreign Securities Fund – Class 2		2010	$	0.842826	$	0.898415		1,280,796.132
Subaccount Inception Date May 1, 2007		2009	$	0.625466	$	0.842826		1,107,019.661
		2008	$	1.066974	$	0.625466		660,223.309
		2007	$	1.000000	$	1.066974		303,752.013
Franklin Templeton VIP Founding Funds Allocation Fund – Class 4		2010	$	1.264301	$	1.368458		1,832,729.578
Subaccount Inception Date November 10, 2008		2009	$	0.990039	$	1.264301		1,100,688.843
		2008	$	1.000000	$	0.990039		9,730.069
Janus Aspen - Enterprise Portfolio – Service Shares		2010	$	0.983918	$	1.214378		115,700.679
Subaccount Inception Date October 9, 2000		2009	$	0.692757	$	0.983918		247,056.568
		2008	$	1.255004	$	0.692757		168,440.473
		2007	$	1.048491	$	1.255004		124,949.696
		2006	$	1.000000	$	1.048491		0.000
Janus Aspen - Worldwide Portfolio – Service Shares		2010	$	0.872856	$	0.991483		675,272.507
Subaccount Inception Date October 9, 2000		2009	$	0.646052	$	0.872856		243,199.759
		2008	$	1.190543	$	0.646052		108,637.236
		2007	$	1.107223	$	1.190543		106,701.264
		2006	$	1.000000	$	1.107223		1,406.919
MFS ® New Discovery Series – Service Class		2010	$	0.964471	$	1.289202		797,686.354
Subaccount Inception Date May 1, 2002		2009	$	0.602040	$	0.964471		251,340.364
		2008	$	1.012433	$	0.602040		124,274.333
		2007	$	1.007074	$	1.012433		85,746.349
		2006	$	1.000000	$	1.007074		0.000
MFS ® Total Return Series – Service Class		2010	$	0.966566	$	1.041956		1,089,498.723
Subaccount Inception Date May 1, 2002		2009	$	0.834998	$	0.966566		679,769.137
		2008	$	1.093271	$	0.834998		569,824.074
		2007	$	1.069851	$	1.093271		194,515.470
		2006	$	1.000000	$	1.069851		6,297.165
American Funds - Asset Allocation Fund – Class 2		2010	$	1.007931	$	1.111765		1,577,513.531
Subaccount inception date November 19, 2009		2009	$	0.989776	$	1.007931		78,055.631
American Funds - Bond Fund – Class 2		2010	$	0.993644	$	1.036944		598,788.904
Subaccount inception date November 19, 2009		2009	$	1.000897	$	0.993644		63,418.369
American Funds - Growth Fund – Class 2		2010	$	1.002789	$	1.166806		364,500.005
Subaccount inception date November 19, 2009		2009	$	0.986479	$	1.002789		0.000
American Funds - Growth-Income Fund – Class 2		2010	$	1.008181	$	1.101360		207,455.738
Subaccount inception date November 19, 2009		2009	$	0.986801	$	1.008181		0.000
American Funds - International Fund – Class 2		2010	$	0.980303	$	1.030620		261,101.833
Subaccount inception date November 19, 2009		2009	$	0.982910	$	0.980303		0.000
GE Investments Total Return Fund – Class 3		2010	$	1.003571	$	1.077107		373,010.145
Subaccount inceptiond date November 19, 2009		2009	$	0.988808	$	1.003571		0.000
		.

56

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation - Conservative VP – Service Class		2010	$	1.369643	$	1.464725		3,926,849.319
Subaccount Inception Date May 1, 2002		2009	$	1.114647	$	1.369643		4,912,638.287
		2008	$	1.441652	$	1.114647		5,122,755.897
		2007	$	1.380694	$	1.441652		5,058,972
		2006	$	1.285855	$	1.380694		5,731,875.609
		2005	$	1.244663	$	1.285855		5,311,608.574
		2004	$	1.156053	$	1.244663		1,754,171.000
		2003	$	1.000000	$	1.156053		306,346.159
Transamerica Asset Allocation - Growth VP – Service Class		2010	$	1.392921	$	1.571048		1,498,895.294
Subaccount Inception Date May 1, 2002		2009	$	1.092998	$	1.392921		1,787,349.333
		2008	$	1.844349	$	1.092998		2,340,011.057
		2007	$	1.743593	$	1.844349		2,892,235.945
		2006	$	1.537391	$	1.743593		3,255,748.077
		2005	$	1.396201	$	1.537391		2,727,896.863
		2004	$	1.246057	$	1.396201		1,258,003.000
		2003	$	1.000000	$	1.246057		96,224.296
Transamerica Asset Allocation - Moderate VP – Service Class		2010	$	1.418449	$	1.536886		7,210,749.389
Subaccount Inception Date May 1, 2002		2009	$	1.142535	$	1.418449		9,175,189.432
		2008	$	1.573670	$	1.142535		9,682,889.469
		2007	$	1.484939	$	1.573670		14,031,740.906
		2006	$	1.357190	$	1.484939		18,165,656.265
		2005	$	1.287710	$	1.357190		15,833,341.165
		2004	$	1.177954	$	1.287710		6,397,712.000
		2003	$	1.000000	$	1.177954		656,616.562
Transamerica Asset Allocation - Moderate Growth VP – Service Class		2010	$	1.420209	$	1.570475		5,993,137.764
Subaccount Inception Date May 1, 2002		2009	$	1.128996	$	1.420209		7,038,351.570
		2008	$	1.711018	$	1.128996		7,463,387.327
		2007	$	1.617168	$	1.711018		13,361,405.235
		2006	$	1.447775	$	1.617168		16,878,947.181
		2005	$	1.341392	$	1.447775		12,973,204.806
		2004	$	1.204992	$	1.341392		3,814,143.000
		2003	$	1.000000	$	1.204992		489,410.694
Transamerica International Moderate Growth VP – Service Class		2010	$	0.875915	$	0.949963		394,653.672
Subaccount Inception Date May 1, 2006		2009	$	0.688460	$	0.875915		402,773.383
		2008	$	1.098976	$	0.688460		936,958.515
		2007	$	1.029756	$	1.098976		979,785.327
		2006	$	1.000000	$	1.029756		143,012.386
Transamerica BlackRock Large Cap Value VP – Service Class		2010	$	1.420531	$	1.539335		265,767.431
Subaccount Inception Date May 1, 2000		2009	$	1.269834	$	1.420531		145,754.278
		2008	$	1.957760	$	1.269834		53,071.857
		2007	$	1.907300	$	1.957760		118,716.618
		2006	$	1.662395	$	1.907300		52,359.747
		2005	$	1.460054	$	1.662395		68,107.397
		2004	$	1.257816	$	1.460054		28,868.000
		2003	$	1.000000	$	1.257816		0.000
Transamerica Clarion Global Real Estate Securities VP – Service Class		2010	$	1.739527	$	1.973132		43,407.809
Subaccount Inception Date May 1, 2002		2009	$	1.329450	$	1.739527		62,218.817
		2008	$	2.350276	$	1.329450		163,852.733
		2007	$	2.566554	$	2.350276		332,653.015
		2006	$	1.838266	$	2.566554		293,705.346
		2005	$	1.650890	$	1.838266		100,705.441
		2004	$	1.266597	$	1.650890		180,655.000
		2003	$	1.000000	$	1.266597		38,980.275

57

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica JPMorgan Enhanced Index VP – Service Class		2010	$	1.218801	$	1.377123		37,716.519
Subaccount Inception Date May 1, 1997		2009	$	0.958056	$	1.218801		38,105.202
		2008	$	1.558815	$	0.958056		62,710.633
		2007	$	1.519307	$	1.558815		63,329.968
		2006	$	1.343303	$	1.519307		86,719.751
		2005	$	1.323097	$	1.343303		52,059.243
		2004	$	1.214901	$	1.323097		23,032.000
		2003	$	1.000000	$	1.214901		0.000
Transamerica Jennison Growth VP – Service Class		2010	$	1.347358	$	1.484226		111,387.463
Subaccount Inception Date November 20, 1996		2009	$	0.973484	$	1.347358		0.000
		2008	$	1.573519	$	0.973484		0.000
		2007	$	1.437497	$	1.573519		0.000
		2006	$	1.438145	$	1.437497		2,898.638
		2005	$	1.287705	$	1.438145		3,048.797
		2004	$	1.202386	$	1.287705		415,456.000
		2003	$	1.000000	$	1.202386		0.000
Transamerica Morgan Stanley Capital Growth VP – Service Class(5)		2010	$	1.260189	$	1.575542		47,220.891
Subaccount Inception Date May 1, 2000		2009	$	1.004173	$	1.260189		15,860.084
		2008	$	1.608596	$	1.004173		20,730.173
		2007	$	1.622880	$	1.608596		78,341.677
		2006	$	1.394493	$	1.622880		199,631.372
		2005	$	1.365470	$	1.394493		143,205.778
		2004	$	1.274668	$	1.365470		209,317.000
		2003	$	1.000000	$	1.274668		20,127.313
Transamerica AEGON High Yield Bond VP – Service Class		2010	$	1.345574	$	1.484824		168,920.218
Subaccount Inception Date June 2, 1998		2009	$	0.931352	$	1.345574		266,035.622
		2008	$	1.270217	$	0.931352		309,170.455
		2007	$	1.269362	$	1.270217		153,336.262
		2006	$	1.166419	$	1.269362		180,911.718
		2005	$	1.168067	$	1.166419		192,415.190
		2004	$	1.084337	$	1.168067		343,085.000
		2003	$	1.000000	$	1.084337		155,172.512
Transamerica MFS International Equity VP – Service Class		2010	$	1.665369	$	1.807190		129,065.931
Subaccount Inception Date May 1, 2001		2009	$	1.280161	$	1.665369		118,086.040
		2008	$	2.018919	$	1.280161		144,164.740
		2007	$	1.885226	$	2.018919		206,064.563
		2006	$	1.558941	$	1.885226		286,232.694
		2005	$	1.409527	$	1.558941		277,604.699
		2004	$	1.254357	$	1.409527		238,529.000
		2003	$	1.000000	$	1.254357		56,673.320
Transamerica PIMCO Total Return VP – Service Class		2010	$	1.233892	$	1.298055		807,819.432
Subaccount Inception Date May 1, 2002		2009	$	1.083573	$	1.233892		1,193,518.388
		2008	$	1.136434	$	1.083573		707,296.029
		2007	$	1.061801	$	1.136434		510,606.303
		2006	$	1.038779	$	1.061801		448,615.800
		2005	$	1.034840	$	1.038779		401,940.145
		2004	$	1.009392	$	1.034840		380,776.000
		2003	$	1.000000	$	1.009392		183,885.849

58

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica T. Rowe Price Small Cap VP – Service Class		2010	$	1.457091	$	1.921682		162,133.607
Subaccount Inception Date May 1, 2000		2009	$	1.070714	$	1.457091		150,065.517
		2008	$	1.711527	$	1.070714		196,757.050
		2007	$	1.592266	$	1.711527		277,165.046
		2006	$	1.566167	$	1.592266		303,947.797
		2005	$	1.441997	$	1.566167		234,156.332
		2004	$	1.331180	$	1.441997		207,470.000
		2003	$	1.000000	$	1.331180		38,917.197
Transamerica WMC Diversified Equity VP – Service Class(6)		2010	$	1.046700	$	1.200098		204,074.960
Subaccount Inception Date May 1, 2000		2009	$	0.832226	$	1.046700		257,960.834
		2008	$	1.505764	$	0.832226		54,525.001
		2007	$	1.331314	$	1.505764		122,615.566
		2006	$	1.142459	$	1.331314		115,352.864
		2005	$	1.082954	$	1.142459		282,204.550
		2004	$	1.205139	$	1.082954		56,317.000
		2003	$	1.000000	$	1.205139		934.640
Transamerica Efficient Markets VP – Service Class		2010	$	1.201944	$	1.328803		0.000
Subaccount Inception Date November 10, 2008		2009	$	1.036627	$	1.201944		0.000
		2008	$	1.000000	$	1.036627		0.000
Transamerica Multi-Managed Balanced VP – Service Class(1)		2010	$	1.244313	$	1.516479		70,815.245
Subaccount Inception Date May 1, 2002		2009	$	1.004336	$	1.244313		110,442.244
		2008	$	1.514207	$	1.004336		47,719.643
		2007	$	1.357724	$	1.514207		46,649.272
		2006	$	1.269134	$	1.357724		31,059.632
		2005	$	1.196794	$	1.269134		22,174.430
		2004	$	1.097257	$	1.196794		20,339.000
		2003	$	1.000000	$	1.097257		23,100.100
Transamerica AllianceBernstein Dynamic Allocation VP – Service Class(7)		2010	$	1.322453	$	1.420036		948,367.193
Subaccount Inception Date May 1, 2002		2009	$	1.024879	$	1.322453		1,194,636.479
		2008	$	1.653702	$	1.024879		1,355,982.617
		2007	$	1.421220	$	1.653702		1,414,118.156
		2006	$	1.305556	$	1.421220		1430856.650
		2005	$	1.281643	$	1.305556		1,360,457.255
		2004	$	1.153019	$	1.281643		640,111.000
		2003	$	1.000000	$	1.153019		18,759.819
Transamerica WMC Diversified Growth VP – Service Class		2010	$	1.286249	$	1.486593		258,859.607
Subaccount Inception Date May 1, 2000		2009	$	1.014355	$	1.286249		261,328.929
		2008	$	1.915788	$	1.014355		271,067.601
		2007	$	1.678298	$	1.915788		273,483
		2006	$	1.573974	$	1.678298		349,258.818
		2005	$	1.375901	$	1.573974		648,105.161
		2004	$	1.209695	$	1.375901		626,065.000
		2003	$	1.000000	$	1.209695		104,864.450
Transamerica Morgan Stanley Growth Opportunities VP – Service Class(8)		2010	$	1.585634	$	2.110317		75,310.561
Subaccount Inception Date May 1, 2001		2009	$	1.180645	$	1.585634		23,231.126
		2008	$	2.036509	$	1.180645		64,515.110
		2007	$	1.686766	$	2.036509		150,043.215
		2006	$	1.634483	$	1.686766		161,632.736
		2005	$	1.433086	$	1.634483		610,130.495
		2004	$	1.250384	$	1.433086		105,738.000
		2003	$	1.000000	$	1.250384		5,210.598

59

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica AEGON Money Market VP – Service Class(2)		2010	$	1.040052	$	1.023242		570,293.735
Subaccount Inception Date July 5, 1994		2009	$	1.057122	$	1.040052		818,260.607
		2008	$	1.051848	$	1.057122		2,866,311.114
		2007	$	1.020645	$	1.051848		2,581,105.521
		2006	$	0.993042	$	1.020645		3096193.112
		2005	$	0.983543	$	0.993042		1,646,772.784
		2004	$	0.992339	$	0.983543		1,100,594.000
		2003	$	1.000000	$	0.992339		333,610.609
Transamerica Systematic Small/Mid Cap Value VP – Service Class(9)		2010	$	0.928586	$	1.188049		13,645.418
Subaccount Inception Date July 5, 1994		2009	$	0.660541	$	0.928586		3,971.414
		2008	$	1.000000	$	0.660541		0.000
Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010	$	1.154918	$	1.184157		419,029.730
Subaccount Inception Date August 3, 1994		2009	$	1.126684	$	1.154918		560,870.148
		2008	$	1.066255	$	1.126684		768,113.295
		2007	$	1.024700	$	1.066255		361,405.868
		2006	$	1.010644	$	1.024700		262,049.585
		2005	$	1.007306	$	1.010644		292,876.039
		2004	$	0.995091	$	1.007306		151,064.000
		2003	$	1.000000	$	0.995091		225,309.984
Transamerica Index 50 VP – Service Class		2010	$	0.936613	$	1.019934		0.000
May 1, 2008		2009	$	0.817007	$	0.936613		0.000
		2008	$	1.000000	$	0.817007		0.000
Transamerica Index 75 VP – Service Class		2010	$	0.873783	$	0.971384		0.000
May 1, 2008		2009	$	0.721052	$	0.873783		0.000
		2008	$	1.000000	$	0.721052		0.000
Transamerica Morgan Stanley Active International Allocation VP – Service Class		2010 2009	$ $	1.700800 1.375634	$ $	1.810448 1.700800		59,202.351 75,665.827
Subaccount Inception Date July 5, 1994		2008	$	2.294266	$	1.375634		140,547.809
		2007	$	2.023287	$	2.294266		350,688.136
		2006	$	1.669500	$	2.023287		378,566.686
		2005	$	1.493653	$	1.669500		208,736.545
		2004	$	1.312150	$	1.493653		285,890.000
		2003	$	1.000000	$	1.312150		18,343.025
Transamerica Multi Managed Large Cap Core VP – Service Class		2010	$	1.286458	$	1.504454		67,975.044
Subaccount Inception Date July 5, 1994		2009	$	0.901309	$	1.286458		124,802.174
		2008	$	1.585327	$	0.901309		26,376.503
		2007	$	1.479328	$	1.585327		35,284.125
		2006	$	1.366206	$	1.479328		71,609.191
		2005	$	1.272601	$	1.366206		121,512.649
		2004	$	1.149629	$	1.272601		99,596.000
		2003	$	1.000000	$	1.149629		0.000
Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class		2010	$	1.419987	$	1.866045		64,479.343
Subaccount Inception Date May 1, 2001		2009	$	0.901458	$	1.419987		55,188.181
		2008	$	1.710951	$	0.901458		89,193.669
		2007	$	1.422904	$	1.710951		59,139.632
		2006	$	1.319748	$	1.422904		81,154.272
		2005	$	1.250057	$	1.319748		68,240.988
		2004	$	1.188546	$	1.250057		43,349.000
		2003	$	1.000000	$	1.188546		4,750.474

60

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
PAM Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010 2009	$ $	1.154918 1.126684	$ $	1.184157 1.154918		837,821.574 1,658,881.249
Subaccount Inception Date November 3, 2003		2008	$	1.066255	$	1.126684		3,182,166.702
		2007	$	1.024700	$	1.066255		44,134.540
		2006	$	1.010644	$	1.024700		0.000
		2005	$	1.007306	$	1.010644		0.000
		2004	$	0.995091	$	1.007306		30,609.000
		2003	$	1.000000	$	0.995091		0.000
Invesco V.I. Basic Value Fund – Series II Shares		2010	$	0.855291	$	0.899866		167,071.823
Subaccount Inception Date May 1, 2002		2009	$	0.588477	$	0.855291		172,689.906
		2008	$	1.243830	$	0.588477		487,603.207
		2007	$	1.247452	$	1.243830		686,147.304
		2006	$	1.122690	$	1.247452		992,629.057
		2005	$	1.082408	$	1.122690		1,166,614.220
		2004	$	0.992723	$	1.082408		1,231,735.000
		2003	$	0.757050	$	0.992723		1,254,260.8415
		2002	$	1.000000	$	0.757050		1,003,800.155
Invesco V.I. Capital Appreciation Fund – Series II Shares		2010	$	0.864752	$	0.980081		76,442.216
Subaccount Inception Date May 1, 2002		2009	$	0.728156	$	0.864752		80,741.469
		2008	$	1.290182	$	0.728156		101,140.098
		2007	$	1.173854	$	1.290182		119,434.702
		2006	$	1.125019	$	1.173854		184,472.830
		2005	$	1.053179	$	1.125019		130,776.757
		2004	$	1.006847	$	1.053179		166,844.000
		2003	$	0.792246	$	1.006847		195,885.874
		2002	$	1.000000	$	0.792246		93,051.475
AllianceBernstein Balanced Wealth Strategy Portfolio – Class B		2010	$	1.237531	$	1.340179		0.000
Subaccount Inception Date November 10, 2008		2009	$	1.012783	$	1.237531		0.000
		2008	$	1.000000	$	1.012783		0.000
AllianceBernstein Growth and Income Portfolio – Class B		2010	$	0.848695	$	0.941786		367,112.891
Subaccount Inception Date May 1, 2001		2009	$	0.716828	$	0.848695		422,550.759
		2008	$	1.228748	$	0.716828		1,187,145.326
		2007	$	1.191237	$	1.228748		1,492,818.757
		2006	$	1.035043	$	1.191237		2,165,164.853
		2005	$	1.005840	$	1.035043		2,710,964.858
		2004	$	0.919316	$	1.005840		2,861,924.000
		2003	$	0.706941	$	0.919316		3,274,904.979
		2002	$	0.924456	$	0.706941		3,412,179.268
		2001	$	1.000000	$	0.924456		2,100,221.216
AllianceBernstein Large Cap Growth Portfolio – Class B		2010	$	0.740617	$	0.800240		125,697.725
Subaccount Inception Date May 1, 2001		2009	$	0.549095	$	0.740617		223,759.659
		2008	$	0.927557	$	0.549095		384,688.625
		2007	$	0.829949	$	0.927557		462,151.848
		2006	$	0.849042	$	0.829949		858,080.426
		2005	$	0.751468	$	0.849042		896,236.648
		2004	$	0.705069	$	0.751468		935,900.000
		2003	$	0.580946	$	0.705069		956,802.626
		2002	$	0.853898	$	0.580946		977,257.596
		2001	$	1.000000	$	0.853898		502,759,851
Fidelity VIP Balanced Portfolio – Service Class 2		2010	$	0.904846	$	1.048229		0.000
Subaccount Inception Date May 1, 2008		2009	$	0.664950	$	0.904846		0.000
		2008	$	1.000000	$	0.664950		0.000

61

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Fidelity VIP Contrafund ® Portfolio – Service Class 2		2010	$	1.098878	$	1.264042		6,160,593.353
Subaccount Inception Date May 1, 2000		2009	$	0.824553	$	1.098878		7,154,851.029
		2008	$	1.462643	$	0.824553		7,982,893.783
		2007	$	1.267582	$	1.462643		9,394,980.015
		2006	$	1.156256	$	1.267582		12,332,579.646
		2005	$	1.007547	$	1.156256		12,946,092.441
		2004	$	0.889389	$	1.007547		11,185,879.000
		2003	$	0.705209	$	0.889389		11,043,294.566
		2002	$	0.793026	$	0.705209		8,369,366.786
		2001	$	0.921032	$	0.793026		3,181,951.082
Fidelity VIP Equity-Income Portfolio – Service Class 2		2010	$	1.010262	$	1.142130		608,347.410
Subaccount Inception Date May 1, 2000		2009	$	0.790655	$	1.010262		984,823.807
		2008	$	1.405491	$	0.790655		2,081,446.625
		2007	$	1.410854	$	1.405491		2,519,117.666
		2006	$	1.195759	$	1.410854		3,687,744.038
		2005	$	1.151310	$	1.195759		3,840,173.981
		2004	$	1.052163	$	1.151310		4,404,731.000
		2003	$	0.822512	$	1.052163		4,183,621.596
		2002	$	1.009197	$	0.822512		3,647,123.191
		2001	$	1.082527	$	1.009197		1,646,698.434
Fidelity VIP Growth Portfolio – Service Class 2		2010	$	0.695259	$	0.847189		306,605.127
Subaccount Inception Date May 1, 2001		2009	$	0.552290	$	0.695259		593,690.524
		2008	$	1.065547	$	0.552290		927,124.381
		2007	$	0.855221	$	1.065547		1,032,876.591
		2006	$	0.815687	$	0.855221		1,721,144.115
		2005	$	0.785870	$	0.815687		2,404,844.956
		2004	$	0.774687	$	0.785870		4,355,705.000
		2003	$	0.594116	$	0.774687		4,619,609.096
		2002	$	0.866432	$	0.594116		4,275,755.599
		2001	$	1.000000	$	0.866432		447,911.910
Fidelity VIP Growth Opportunities Portfolio – Service Class 2		2010	$	0.616620	$	0.749024		23,686.369
Subaccount Inception Date May 1, 2000		2009	$	0.430897	$	0.616620		74,157.523
		2008	$	0.976401	$	0.430897		106,228.385
		2007	$	0.807604	$	0.976401		118,705.896
		2006	$	0.780921	$	0.807604		139,315.397
		2005	$	0.730396	$	0.780921		159,951.180
		2004	$	0.394612	$	0.730396		229,436.000
		2003	$	0.545616	$	0.394612		305,580.826
		2002	$	0.711125	$	0.545616		405,195.634
		2001	$	0.846932	$	0.711125		471,916.204
Fidelity VIP Mid Cap Portfolio – Service Class 2		2010	$	1.855115	$	2.346471		2,623,368.361
Subaccount Inception Date May 1, 2000		2009	$	1.349336	$	1.855115		3,181,919.737
		2008	$	2.271284	$	1.349336		5,230,196.469
		2007	$	2.001900	$	2.271284		6,859,195.465
		2006	$	1.810309	$	2.001900		9,519,029.718
		2005	$	1.559181	$	1.810309		10,808,650.447
		2004	$	1.271464	$	1.559181		11,302,961.000
		2003	$	0.934838	$	1.271464		11,797,256.740
		2002	$	1.056151	$	0.934838		11,119,727.497
		2001	$	1.112803	$	1.056151		3,679,109.250

62

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Fidelity VIP Value Strategies Portfolio – Service Class 2		2010	$	1.145202	$	1.423359		1,614,238.828
Subaccount Inception Date May 1, 2002		2009	$	0.740746	$	1.145202		1,743,605.916
		2008	$	1.545817	$	0.740746		3,033,707.801
		2007	$	1.490367	$	1.545817		3,606,595.948
		2006	$	1.305847	$	1.490367		4,766,795.720
		2005	$	1.295883	$	1.305847		5,239,413.070
		2004	$	1.157177	$	1.295883		5,572,327.000
		2003	$	0.747462	$	1.157177		5,139,439.175
		2002	$	1.000000	$	0.747462		2,909,201.745
Franklin Income Securities Fund – Class 2		2010	$	0.894268	$	0.991236		1,377,356.238
Subaccount Inception Date May 1, 2007		2009	$	0.670389	$	0.894268		1,286,158.746
		2008	$	0.968794	$	0.670389		495,848.543
		2007	$	1.000000	$	0.968794		0.000
Mutual Shares Securities Fund – Class 2		2010	$	0.738651	$	0.808020		165,535.861
Subaccount Inception Date May 1, 2007		2009	$	0.595677	$	0.738651		279,220.697
		2008	$	0.962851	$	0.595677		428,919.031
		2007	$	1.000000	$	0.962851		516,972.664
Templeton Foreign Securities Fund – Class 2		2010	$	0.843928	$	0.900033		384,696.921
Subaccount Inception Date May 1, 2007		2009	$	0.625977	$	0.843928		772,731.485
		2008	$	1.067319	$	0.625977		313,543.636
		2007	$	1.000000	$	1.067319		581,359.124
Franklin Templeton VIP Founding Funds Allocation Fund – Class 4		2010	$	1.265010	$	1.369903		5,707.161
November 10, 2008		2009	$	0.990107	$	1.265010		5,753.028
		2008	$	1.000000	$	0.990107		0.000
Janus Aspen – Enterprise Portfolio – Service Shares		2010	$	0.562599	$	0.694709		511,530.836
Subaccount Inception Date October 9, 2000		2009	$	0.395914	$	0.562599		674,811.391
		2008	$	0.716875	$	0.395914		919,318.124
		2007	$	0.598622	$	0.716875		1,057,678.007
		2006	$	0.537021	$	0.598622		1,022,825.324
		2005	$	0.487253	$	0.537021		1,306,600.409
		2004	$	0.411128	$	0.487253		1,950,768.000
		2003	$	0.310104	$	0.411128		2,333,284.441
		2002	$	0.438542	$	0.310104		2,981,371.124
		2001	$	0.738029	$	0.438542		1,103,411.436
Janus Aspen – Perkins Mid Cap Value Portfolio – Service Shares		2010	$	1.307150	$	1.483526		89,891.476
Subaccount Inception Date October 9, 2000		2009	$	0.999639	$	1.307150		87,253.727
		2008	$	1.409366	$	0.999639		108,658.554
		2007	$	1.336873	$	1.409366		156,402.350
		2006	$	1.180964	$	1.336873		170,687.250
		2005	$	1.091239	$	1.180964		229,998.743
		2004	$	0.941673	$	1.091239		260,937.000
		2003	$	0.677839	$	0.941673		290,793.061
		2002	$	0.899778	$	0.677839		512,467.432
		2001	$	0.998370	$	0.899778		332,829.788
Janus Aspen – Worldwide Portfolio – Service Shares		2010	$	0.587549	$	0.667727		4,214,615.890
Subaccount Inception Date October 9, 2000		2009	$	0.434661	$	0.587549		4,261,710.404
		2008	$	0.800602	$	0.434661		1,469,162.162
		2007	$	0.744204	$	0.800602		2,017,402.285
		2006	$	0.641412	$	0.744204		1,816,322.478
		2005	$	0.617582	$	0.641412		1,998,931.934
		2004	$	0.600609	$	0.617582		2,197,986.000
		2003	$	0.493626	$	0.600609		5,422,331.886
		2002	$	0.675409	$	0.493626		6,042,239.890
		2001	$	0.887322	$	0.675409		1,130,009.520

63

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
MFS® New Discovery Series – Service Class		2010	$	1.126746	$	1.506858		287,537.345
Subaccount Inception Date May 1, 2002		2009	$	0.702996	$	1.126746		260,249.577
		2008	$	1.181624	$	0.702996		100,509.764
		2007	$	1.174786	$	1.181624		227,941.936
		2006	$	1.057395	$	1.174786		252,125.681
		2005	$	1.023299	$	1.057395		223,744.655
		2004	$	0.979415	$	1.023299		507,516.000
		2003	$	0.746131	$	0.979415		252,905.234
		2002	$	1.000000	$	0.746131		88,053.024
MFS® Total Return Series – Service Class		2010	$	1.145761	$	1.235752		3,112,931.584
Subaccount Inception Date May 1, 2002		2009	$	0.989314	$	1.145761		3,997,110.597
		2008	$	1.294686	$	0.989314		5,266,112.172
		2007	$	1.266326	$	1.294686		5,935,898.431
		2006	$	1.153125	$	1.266326		6,174,817.817
		2005	$	1.142421	$	1.153125		7,487,429.299
		2004	$	1.045974	$	1.142421		7,769,161.000
		2003	$	0.916538	$	1.045974		5,455,329.528
		2002	$	1.000000	$	0.916538		2,852,668.086
Transamerica Asset Allocation - Conservative VP – Initial Class		2010	$	1.301645	$	1.394894		3,816,378.058
Subaccount Inception Date May 1, 2002		2009	$	1.056595	$	1.301645		4,092,210.818
		2008	$	1.362730	$	1.056595		4,324,481.770
		2007	$	1.302195	$	1.362730		4,559,401.539
		2006	$	1.209388	$	1.302195		3,950,262.173
		2005	$	1.168714	$	1.209388		5,139,406.237
		2004	$	1.082863	$	1.168714		6,043,256.000
		2003	$	0.895514	$	1.082863		3,745,811.278
		2002	$	1.000000	$	0.895514		2,904,735.182
Transamerica Asset Allocation - Growth VP – Initial Class		2010	$	1.173414	$	1.326967		9,175,586.525
Subaccount Inception Date May 1, 2002		2009	$	0.918811	$	1.173414		9,019,004.958
		2008	$	1.547312	$	0.918811		6,135,701.505
		2007	$	1.459780	$	1.547312		8,836,631.456
		2006	$	1.283364	$	1.459780		9,538,311.474
		2005	$	1.162218	$	1.283364		9,927,114.009
		2004	$	1.034667	$	1.162218		8,831,520.000
		2003	$	0.804077	$	1.034667		6,541,474.200
		2002	$	1.000000	$	0.804077		2,859,222.516
Transamerica Asset Allocation - Moderate VP – Initial Class		2010	$	1.301334	$	1.413048		9,512,237.211
Subaccount Inception Date May 1, 2002		2009	$	1.046510	$	1.301334		11,363,556.425
		2008	$	1.436940	$	1.046510		12,166,748.247
		2007	$	1.353130	$	1.436940		12,903,497.992
		2006	$	1.233773	$	1.353130		16,280,085.326
		2005	$	1.167191	$	1.233773		18,384,505.055
		2004	$	1.065126	$	1.167191		14,608,196.000
		2003	$	0.867070	$	1.065126		12,643,724.058
		2002	$	1.000000	$	0.867070		4,179,411.611
Transamerica Asset Allocation - Moderate Growth VP – Initial Class		2010	$	1.254864	$	1.391624		19,288,255.248
Subaccount Inception Date May 1, 2002		2009	$	0.995303	$	1.254864		20,793,678.692
		2008	$	1.504829	$	0.995303		15,724,985.647
		2007	$	1.418967	$	1.504829		20,753,110.812
		2006	$	1.267027	$	1.418967		21,875,335.171
		2005	$	1.171748	$	1.267027		21,767,725.511
		2004	$	1.049045	$	1.171748		16,971,950.000
		2003	$	0.838523	$	1.049045		18,238,722.797
		2002	$	1.000000	$	0.838523		5,874,308.062

64

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica BlackRock Large Cap Value VP – Initial Class		2010	$	1.288921	$	1.400446		3,981,440.291
Subaccount Inception Date May 1, 2000		2009	$	1.149386	$	1.288921		3,826,118.955
		2008	$	1.767369	$	1.149386		1,015,262.667
		2007	$	1.717060	$	1.767369		1,723,077
		2006	$	1.492715	$	1.717060		2,315,953.929
		2005	$	1.308666	$	1.492715		2,131,536.600
		2004	$	1.124147	$	1.308666		1,798,706.000
		2003	$	0.880466	$	1.124147		2,349,670.149
		2002	$	1.043264	$	0.880466		2,185,519.794
		2001	$	1.080110	$	1.043264		1,443,863.482
Transamerica Clarion Global Real Estate Securities VP – Initial Class		2010	$	1.729018	$	1.967462		1,096,143.921
Subaccount Inception Date May 1, 2002		2009	$	1.317332	$	1.729018		1,269,838.918
		2008	$	2.324131	$	1.317332		599,168.647
		2007	$	2.532504	$	2.324131		951,110.436
		2006	$	1.809299	$	2.532504		1,559,705.399
		2005	$	1.620689	$	1.809299		1,289,401.303
		2004	$	1.240013	$	1.620689		1,511,075.000
		2003	$	0.928601	$	1.240013		1,117,207.638
		2002	$	1.000000	$	0.928601		529,237.820
Transamerica JPMorgan Enhanced Index VP – Initial Class		2010	$	1.328696	$	1.505515		579,744.821
Subaccount Inception Date May 1, 1997		2009	$	1.042233	$	1.328696		1,050,365.590
		2008	$	1.691147	$	1.042233		2,218,789.443
		2007	$	1.644580	$	1.691147		4,193,055.550
		2006	$	1.449676	$	1.644580		5,851,623.813
		2005	$	1.424267	$	1.449676		7,480,482.507
		2004	$	1.304133	$	1.424267		9,880,898.000
		2003	$	1.028077	$	1.304133		11,186,909.259
		2002	$	1.385872	$	1.028077		11,893,663.375
		2001	$	1.600648	$	1.385872		14,139,200.302
Transamerica Jennison Growth VP – Initial Class		2010	$	0.841582	$	0.929448		2,573,593.992
Subaccount Inception Date November 20, 1996		2009	$	0.606699	$	0.841582		618,715.091
		2008	$	0.979098	$	0.606699		1,111,090.070
		2007	$	0.892571	$	0.979098		1,547,113.380
		2006	$	0.889798	$	0.892571		2,137,833.553
		2005	$	0.794843	$	0.889798		2,675,778.473
		2004	$	0.740408	$	0.794843		3,298,786.000
		2003	$	0.584450	$	0.740408		3,888,476.521
		2002	$	0.857823	$	0.584450		3,985,892.254
		2001	$	1.070626	$	0.857823		4,155,595.072
Transamerica Morgan Stanley Capital Growth VP – Initial Class(5)		2010	$	1.023386	$	1.283014		1,058,309.486
Subaccount Inception Date May 1, 2000		2009	$	0.813281	$	1.023386		1,490,680.417
		2008	$	1.299237	$	0.813281		3,769,086.970
		2007	$	1.307248	$	1.299237		4,881,894.776
		2006	$	1.120778	$	1.307248		6,472,335.150
		2005	$	1.094583	$	1.120778		9,407,007.331
		2004	$	1.019502	$	1.094583		10,473,985.000
		2003	$	0.766770	$	1.019502		11,221,771.416
		2002	$	1.035304	$	0.766770		10,724,740.045
		2001	$	1.030978	$	1.035304		7,263,091.162

65

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica AEGON High Yield Bond VP – Initial Class		2010	$	1.395350	$	1.543449		542,950.526
Subaccount Inception Date June 2, 1998		2009	$	0.963321	$	1.395350		899,185.672
		2008	$	1.309167	$	0.963321		1,317,420.419
		2007	$	1.306671	$	1.309167		2,338,348.372
		2006	$	1.197121	$	1.306671		2,758,581.858
		2005	$	1.195154	$	1.197121		3,228,323.815
		2004	$	1.106818	$	1.195154		4,577,669.000
		2003	$	0.955558	$	1.106818		5,300,691.125
		2002	$	0.951599	$	0.955558		3,994,850.994
		2001	$	0.932124	$	0.951599		3,672,588.987
Transamerica MFS International Equity VP – Initial Class		2010	$	1.061168	$	1.153536		677,110.014
Subaccount Inception Date May 1, 2001		2009	$	0.812973	$	1.061168		942,876.102
		2008	$	1.277171	$	0.812973		1,847,443.141
		2007	$	1.189488	$	1.277171		2,516,786.551
		2006	$	0.982420	$	1.189488		3,440,349.383
		2005	$	0.884758	$	0.982420		3,633,483.808
		2004	$	0.786574	$	0.884758		3,712,503.000
		2003	$	0.638142	$	0.786574		3,115,043.494
		2002	$	0.831827	$	0.638142		1,590,381.361
		2001	$	1.000000	$	0.831827		32,678.652
Transamerica PIMCO Total Return VP – Initial Class		2010	$	1.345550	$	1.418945		3,425,998.468
Subaccount Inception Date May 1, 2002		2009	$	1.178731	$	1.345550		4,431,152.343
		2008	$	1.232649	$	1.178731		4,346,726.699
		2007	$	1.150163	$	1.232649		5,485,421.163
		2006	$	1.121860	$	1.150163		6,357,614.801
		2005	$	1.114366	$	1.121860		7,441,560.425
		2004	$	1.084069	$	1.114366		10,302,205.000
		2003	$	1.050445	$	1.084069		11,973,638.852
		2002	$	1.000000	$	1.050445		11,672,666.206
Transamerica T. Rowe Price Small Cap VP – Initial Class		2010	$	0.831679	$	1.099853		692,999.034
Subaccount Inception Date May 1, 2000		2009	$	0.609515	$	0.831679		914,078.990
		2008	$	0.971981	$	0.609515		2,133,106.473
		2007	$	0.901482	$	0.971981		2,917,130.957
		2006	$	0.884586	$	0.901482		4,898,196.054
		2005	$	0.812890	$	0.884586		5,525,253.564
		2004	$	0.748717	$	0.812890		6,866,396.000
		2003	$	0.542048	$	0.748717		7,757,839.511
		2002	$	0.758423	$	0.542048		4,581,581.594
		2001	$	0.853985	$	0.758423		1,490,797.527
Transamerica WMC Diversified Equity VP – Initial Class(6)		2010	$	0.546937	$	0.628704		5,546,953.375
Subaccount Inception Date May 1, 2000		2009	$	0.433256	$	0.546937		7,324,839.749
		2008	$	0.781935	$	0.433256		2,897,757.691
		2007	$	0.689737	$	0.781935		3,300,809
		2006	$	0.590182	$	0.689737		3,555,094.376
		2005	$	0.558206	$	0.590182		3,535,741.001
		2004	$	0.747851	$	0.558206		3,431,817.000
		2003	$	0.599849	$	0.747851		993,167.926
		2002	$	0.776870	$	0.599849		544,592.989
		2001	$	0.949668	$	0.776870		126,397.489

66

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Multi-Managed Balanced VP – Initial Class(1)		2010	$	1.210830	$	1.478503		254,261.711
Subaccount Inception Date May 1, 2002		2009	$	0.974536	$	1.210830		397,663.261
		2008	$	1.465524	$	0.974536		474,534.745
		2007	$	1.311405	$	1.465524		330,746.167
		2006	$	1.221526	$	1.311405		330,934.475
		2005	$	1.150057	$	1.221526		410,310.594
		2004	$	1.051755	$	1.150057		430,740.000
		2003	$	0.938664	$	1.051755		480,373.577
		2002	$	1.000000	$	0.938664		214,030.878
Transamerica AllianceBernstein Dynamic Allocation VP – Initial Class(7)		2010	$	1.303225	$	1.401178		264,532.464
Subaccount Inception Date May 1, 2002		2009	$	1.008953	$	1.303225		383,979.514
		2008	$	1.624780	$	1.008953		489,868.775
		2007	$	1.392271	$	1.624780		616,865.970
		2006	$	1.276106	$	1.392271		635,980.915
		2005	$	1.248620	$	1.276106		631,326.559
		2004	$	1.121475	$	1.248620		966,039.000
		2003	$	0.921845	$	1.121475		717,917.875
		2002	$	1.000000	$	0.921845		109,517.234
Transamerica WMC Diversified Growth VP – Initial Class		2010	$	0.715964	$	0.829795		2,610,489.214
Subaccount Inception Date May 1, 2000		2009	$	0.563320	$	0.715964		5,228,879.007
		2008	$	1.060596	$	0.563320		12,261,597.135
		2007	$	0.927191	$	1.060596		18,923,285.565
		2006	$	0.866901	$	0.927191		29,589,240.873
		2005	$	0.756126	$	0.866901		14,045,235.397
		2004	$	0.663714	$	0.756126		15,059,252.000
		2003	$	0.514119	$	0.663714		13,524,250.334
		2002	$	0.672098	$	0.514119		13,860,459.800
		2001	$	0.829471	$	0.672098		6,215,346.172
Transamerica Morgan Stanley Growth Opportunities VP – Initial Class(8)		2010	$	1.546752	$	2.064319		446,687.034
Subaccount Inception Date May 1, 2001		2009	$	1.148817	$	1.546752		618,098.201
		2008	$	1.976281	$	1.148817		681,614.064
		2007	$	1.632247	$	1.976281		908,011
		2006	$	1.578575	$	1.632247		1,298,212.300
		2005	$	1.380498	$	1.578575		1,571,450.165
		2004	$	1.203260	$	1.380498		1,986,135.000
		2003	$	0.932156	$	1.203260		595,234.833
		2002	$	1.105816	$	0.932156		598,414.849
		2001	$	1.000000	$	1.105816		57,285.504
Transamerica AEGON Money Market VP – Initial Class(2)		2010	$	1.335075	$	1.313471		2,360,641.496
Subaccount Inception Date July 5, 1994		2009	$	1.355365	$	1.335075		3,312,757.850
		2008	$	1.345657	$	1.355365		5,581,228.748
		2007	$	1.302478	$	1.345657		4,855,653.613
		2006	$	1.264107	$	1.302478		4,842,365.529
		2005	$	1.248895	$	1.264107		6,486,077.019
		2004	$	1.256917	$	1.248895		7,620,339.000
		2003	$	1.268238	$	1.256917		11,092,443.850

67

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Systematic Small/Mid Cap Value VP – Initial Class(9)		2010	$	4.870210	$	6.248400		327,914.570
Subaccount Inception Date July 5, 1994		2009	$	3.456783	$	4.870210		731,597.537
		2008	$	5.942626	$	3.456783		1,312,501.443
		2007	$	4.843039	$	5.942626		2,459,808.906
		2006	$	4.169913	$	4.843039		3,841,758.422
		2005	$	3.732362	$	4.169913		5,424,333.908
		2004	$	3.261034	$	3.732362		6,987,862.000
		2003	$	1.737018	$	3.261034		8,463,313.859
		2002	$	2.916827	$	1.737018		10,140,901.466
		2001	$	2.302427	$	2.916827		10,496,025.501
Transamerica AEGON U.S. Government Securities VP – Initial Class(3)		2010	$	1.726662	$	1.773434		987,756.962
Subaccount Inception Date August 3, 1994		2009	$	1.680100	$	1.726662		1,478,270.501
		2008	$	1.586353	$	1.680100		2,564,117.468
		2007	$	1.520685	$	1.586353		3,057,723.590
		2006	$	1.496746	$	1.520685		3,432,703.460
		2005	$	1.488185	$	1.496746		4,436,021.611
		2004	$	1.464538	$	1.488185		5,866,231.000
		2003	$	1.446084	$	1.464538		8,558,140.430
		2002	$	1.389160	$	1.446084		10,798,492.580
		2001	$	1.343721	$	1.389160		10,097.516.496
Transamerica Morgan Stanley Active International Allocation VP – Initial Class		2010 2009	$ $	1.480611 1.195589	$ $	1.580098 1.480611		1,869,903.871 2,813,228.423
Subaccount Inception Date July 5, 1994		2008	$	1.986997	$	1.195589		2,860,665.267
		2007	$	1.747301	$	1.986997		4,525,420.659
		2006	$	1.438008	$	1.747301		6,381,258.270
		2005	$	1.284512	$	1.438008		8,101,758.861
		2004	$	1.125252	$	1.284512		8,990,192.000
		2003	$	0.861237	$	1.125252		9,838,449.262
		2002	$	1.054413	$	0.861237		10,643,994.382
		2001	$	1.391360	$	1.054413		12,734,394.479
Transamerica Multi Managed Large Cap Core VP – Initial Class		2010	$	2.211626	$	2.592878		1,053,344.484
Subaccount Inception Date July 5, 1994		2009	$	1.546049	$	2.211626		1,869,699.143
		2008	$	2.713642	$	1.546049		1,692,997.771
		2007	$	2.525105	$	2.713642		2,967,084.000
		2006	$	2.326270	$	2.525105		4,539,237.876
		2005	$	2.161082	$	2.326270		6,125,685.582
		2004	$	1.948358	$	2.161082		7,883,481.000
		2003	$	1.635640	$	1.948358		9,184,203.186
		2002	$	1.988345	$	1.635640		10,520,153.154
		2001	$	2.174927	$	1.988345		12,715,598.918
Transamerica Morgan Stanley Mid-Cap Growth VP – Initial Class		2010	$	0.810414	$	1.067561		526,056.223
Subaccount Inception Date May 1, 2001		2009	$	0.513072	$	0.810414		557,667.973
		2008	$	0.971097	$	0.513072		859,907.435
		2007	$	0.805667	$	0.971097		1,118,220.158
		2006	$	0.745112	$	0.805667		1,545,437.231
		2005	$	0.704207	$	0.745112		1,734,076.151
		2004	$	0.668131	$	0.704207		2,114,304.000
		2003	$	0.529946	$	0.668131		2,666,322.190
		2002	$	0.804775	$	0.529946		2,299,820.383
		2001	$	1.000000	$	0.804775		481,275.835
Transamerica BlackRock Tactical Allocation VP – Service Class		2010	$	1.003010	$	1.097671		447,046.809
Subaccount inception date May 1, 2009		2009	$	0.993360	$	1.003010		0.000
Transamerica Index 35 VP – Service Class		2010	$	0.998075	$	1.074408		112,626.868
Subaccount inception date November 19, 2009		2009	$	0.999955	$	0.998075		7,241.336

68

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.65%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Index 100 VP – Service Class		2010	$	1.024027	$	1.152543		0.000
Subaccount inception date November 19, 2009		2009	$	0.999955	$	1.024027		0.000
Transamerica JPMorgan Mid Cap Value VP – Service Class		2010	$	1.029468	$	1.243896		35,402.148
Subacount inception date November 19, 2009		2009	$	0.985154	$	1.029468		0.000
	Year		1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation- Conservative VP – Initial Class		2010	$	1.316426	$	1.412819		2,221,828.060
Subaccount Inception Date May 1, 2002		2009	$	1.067017	$	1.316426		2,583,202.197
		2008	$	1.374142	$	1.067017		2,653,275.454
		2007	$	1.311160	$	1.374142		3,459,057.783
		2006	$	1.215924	$	1.311160		3,420,820.913
		2005	$	1.173316	$	1.215924		3,340,787.058
		2004	$	1.085524	$	1.173316		6,772,717.000
		2003	$	0.896399	$	1.085524		3,668,423.606
		2002	$	1.000000	$	0.896399		1,767,196.950
Transamerica Asset Allocation - Growth VP – Initial Class		2010	$	1.186779	$	1.344067		1,426,254.087
Subaccount Inception Date May 1, 2002		2009	$	0.927903	$	1.186779		1,388,714.748
		2008	$	1.560311	$	0.927903		1,297,644.368
		2007	$	1.469855	$	1.560311		1,485,357.269
		2006	$	1.290319	$	1.469855		1,713,199.572
		2005	$	1.166804	$	1.290319		1,534,761.145
		2004	$	1.037216	$	1.166804		1,809,111.000
		2003	$	0.804872	$	1.037216		1,046,521.105
		2002	$	1.000000	$	0.804872		331,716.894
Transamerica Asset Allocation - Moderate VP – Initial Class		2010	$	1.316161	$	1.431255		3,844,480.019
Subaccount Inception Date May 1, 2002		2009	$	1.056864	$	1.316161		4,147,991.862
		2008	$	1.449009	$	1.056864		4,056,303.406
		2007	$	1.362474	$	1.449009		3,763,149.020
		2006	$	1.240469	$	1.362474		4,966,023.731
		2005	$	1.171796	$	1.240469		5,272,120.076
		2004	$	1.067759	$	1.171796		4,260,182.000
		2003	$	0.867926	$	1.067759		5,122,323.817
		2002	$	1.000000	$	0.867926		2,109,943.178
Transamerica Asset Allocation - Moderate Growth VP – Initial Class		2010	$	1.269176	$	1.409570		2,430,930.234
Subaccount Inception Date May 1, 2002		2009	$	1.005174	$	1.269176		2,473,368.605
		2008	$	1.517482	$	1.005174		3,003,954.969
		2007	$	1.428769	$	1.517482		3,794,143.921
		2006	$	1.273905	$	1.428769		5,649,425.511
		2005	$	1.171748	$	1.273905		7,866,915.104
		2004	$	1.051623	$	1.176374		5,542,244.000
		2003	$	0.839352	$	1.051623		8,748,000.342
		2002	$	1.000000	$	0.839352		1,349,063.139
Transamerica International Moderate Growth VP – Service Class		2010	$	0.880687	$	0.956557		229,339.375
Subaccount Inception Date May 1, 2006		2009	$	0.691190	$	0.880687		261,551.879
		2008	$	1.101698	$	0.691190		253,341
		2007	$	1.030768	$	1.101698		263,919
		2006	$	1.000000	$	1.030768		19,678.806

69

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica BlackRock Large Cap Value VP – Initial Class		2010	$	1.307493	$	1.422727		1,336,617.124
Subaccount Inception Date May 1, 2000		2009	$	1.164227	$	1.307493		1,136,339.205
		2008	$	1.787544	$	1.164227		140,911.884
		2007	$	1.734075	$	1.787544		551,064.227
		2006	$	1.505299	$	1.734075		211,991.790
		2005	$	1.317759	$	1.505299		288,725.171
		2004	$	1.130279	$	1.317759		278,241.000
		2003	$	0.883966	$	1.130279		247,665.126
		2002	$	1.045857	$	0.883966		206,458.124
		2001	$	1.081170	$	1.045857		171,576.787
Transamerica Clarion Global Real Estate Securities VP – Initial Class		2010	$	1.748721	$	1.992826		94,502.163
Subaccount Inception Date May 1, 2002		2009	$	1.330377	$	1.748721		133,300.161
		2008	$	2.343666	$	1.330377		197,207.571
		2007	$	2.550004	$	2.343666		420,537.891
		2006	$	1.819127	$	2.550004		550,957.069
		2005	$	1.627102	$	1.819127		498,416.601
		2004	$	1.243075	$	1.627102		546,761.000
		2003	$	0.929516	$	1.243075		411,080.615
		2002	$	1.000000	$	0.929516		163,787.239
Transamerica JPMorgan Enhanced Index VP – Initial Class		2010	$	1.353369	$	1.535728		94,679.776
Subaccount Inception Date May 1, 1997		2009	$	1.060014	$	1.353369		192,323.651
		2008	$	1.717450	$	1.060014		472,671.914
		2007	$	1.667686	$	1.717450		994,311.129
		2006	$	1.467884	$	1.667686		1,399,021.179
		2005	$	1.440031	$	1.467884		1,662,015.857
		2004	$	1.316611	$	1.440031		2,086,496.000
		2003	$	1.036367	$	1.316611		2,044,814.188
		2002	$	1.394980	$	1.036367		2,460,344.188
		2001	$	1.608774	$	1.394980		2,771,657.278
Transamerica Jennison Growth VP – Initial Class		2010	$	0.857230	$	0.948123		260,220.098
Subaccount Inception Date November 20, 1996		2009	$	0.617065	$	0.857230		73,863.794
		2008	$	0.994338	$	0.617065		194,266.201
		2007	$	0.905116	$	0.994338		296,905.938
		2006	$	0.900963	$	0.905116		371,010.593
		2005	$	0.803621	$	0.900963		540,524.394
		2004	$	0.747485	$	0.803621		687,882.000
		2003	$	0.589170	$	0.747485		719,485.497
		2002	$	0.863467	$	0.589170		842,937.474
		2001	$	1.076068	$	0.863467		794,421.477
Transamerica Morgan Stanley Capital Growth VP – Initial Class(5)		2010	$	1.038099	$	1.303377		227,442.925
Subaccount Inception Date May 1, 2000		2009	$	0.823757	$	1.038099		368,024.883
		2008	$	1.314017	$	0.823757		484,969.751
		2007	$	1.320166	$	1.314017		878,161.559
		2006	$	1.130190	$	1.320166		1,192,705.951
		2005	$	1.102152	$	1.130190		1,466,174.733
		2004	$	1.025037	$	1.102152		1,817,749.000
		2003	$	0.769798	$	1.025037		1,775,466.094
		2002	$	1.037858	$	0.769798		2,248,284.702
		2001	$	1.031983	$	1.037858		1,854,117.582

70

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica AEGON High Yield Bond VP – Initial Class		2010	$	1.419455	$	1.572425		277,680.177
Subaccount Inception Date June 2, 1998		2009	$	0.978517	$	1.419455		300,407.110
		2008	$	1.327848	$	0.978517		277,025.737
		2007	$	1.323335	$	1.327848		578,569.891
		2006	$	1.210603	$	1.323335		1,024,936.161
		2005	$	1.206825	$	1.210603		1,284,968.063
		2004	$	1.115968	$	1.206825		1,879,616.000
		2003	$	0.962033	$	1.115968		2,108,724.599
		2002	$	0.956639	$	0.962033		1,415,069.235
		2001	$	0.935671	$	0.956639		1,251,294.886
Transamerica MFS International Equity VP – Initial Class		2010	$	1.074829	$	1.170113		239,245.076
Subaccount Inception Date May 1, 2001		2009	$	0.822222	$	1.074829		274,053.510
		2008	$	1.289772	$	0.822222		310,883.802
		2007	$	1.199432	$	1.289772		466,739.748
		2006	$	0.989186	$	1.199432		739,834.511
		2005	$	0.889551	$	0.989186		632,897.488
		2004	$	0.789661	$	0.889551		770,286.000
		2003	$	0.639710	$	0.789661		485,325.462
		2002	$	0.832651	$	0.639710		145,042.207
		2001	$	1.000000	$	0.832651		11,671.774
Transamerica PIMCO Total Return VP – Initial Class		2010	$	1.360914	$	1.437263		1,467,024.245
Subaccount Inception Date May 1, 2002		2009	$	1.190434	$	1.360914		2,837,622.739
		2008	$	1.243039	$	1.190434		2,131,759.112
		2007	$	1.158142	$	1.243039		1,480,560.283
		2006	$	1.127971	$	1.158142		1,661,995.347
		2005	$	1.118783	$	1.127971		2,230,572.427
		2004	$	1.086753	$	1.118783		2,696,360.000
		2003	$	1.051492	$	1.086753		3,091,761.763
		2002	$	1.000000	$	1.051492		2,092,533.373
Transamerica T. Rowe Price Small Cap VP – Initial Class		2010	$	0.843676	$	1.117363		279,432.242
Subaccount Inception Date May 1, 2000		2009	$	0.617387	$	0.843676		291,548.966
		2008	$	0.983073	$	0.617387		454,334.751
		2007	$	0.910402	$	0.983073		492,961.211
		2006	$	0.892022	$	0.910402		564,194.176
		2005	$	0.818522	$	0.892022		716,997.554
		2004	$	0.752793	$	0.818522		909,648.000
		2003	$	0.544196	$	0.752793		989,024.641
		2002	$	0.760305	$	0.544196		373,078.856
		2001	$	0.854820	$	0.760305		167,743.278
Transamerica WMC Diversified Equity VP – Initial Class(6)		2010	$	0.554792	$	0.638687		1,005,852.633
Subaccount Inception Date May 1, 2000		2009	$	0.438824	$	0.554792		1,108,621.481
		2008	$	0.790813	$	0.438824		241,321
		2007	$	0.696548	$	0.790813		302,606
		2006	$	0.595141	$	0.696548		283,253.478
		2005	$	0.562060	$	0.595141		277,673.306
		2004	$	0.751404	$	0.562060		305,805.000
		2003	$	0.601821	$	0.751404		83,811.667
		2002	$	0.778284	$	0.601821		61,696.491
		2001	$	0.949980	$	0.778284		1,669.965

71

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Multi-Managed Balanced VP – Initial Class(1)		2010	$	1.224632	$	1.497561		70,623.676
Subaccount Inception Date May 1, 2002		2009	$	0.984186	$	1.224632		62,116.111
		2008	$	1.477848	$	0.984186		88,686.546
		2007	$	1.320483	$	1.477848		164,152.932
		2006	$	1.228162	$	1.320483		190,473.497
		2005	$	1.154600	$	1.228162		235,847.499
		2004	$	1.054354	$	1.154600		271,875.000
		2003	$	0.939595	$	1.054354		356,752.099
		2002	$	1.000000	$	0.939595		73,453.140
Transamerica AllianceBernstein Dynamic Allocation VP – Initial Class(7)		2010	$	1.318102	$	1.419261		70,233.222
Subaccount Inception Date May 1, 2002		2009	$	1.018964	$	1.318102		91,913.978
		2008	$	1.638459	$	1.018964		95,928.502
		2007	$	1.401918	$	1.638459		333,267.694
		2006	$	1.283056	$	1.401918		407,275.397
		2005	$	1.253568	$	1.283056		244,264.243
		2004	$	1.124250	$	1.253568		265,461.000
		2003	$	0.922763	$	1.124250		240,457.310
		2002	$	1.000000	$	0.922763		40,596.281
Transamerica WMC Diversified Growth VP – Initial Class		2010	$	0.726238	$	0.842960		568,567.169
Subaccount Inception Date May 1, 2000		2009	$	0.570557	$	0.726238		1,015,045.362
		2008	$	1.072627	$	0.570557		2,023,801.852
		2007	$	0.936327	$	1.072627		2,844,354.563
		2006	$	0.874163	$	0.936327		3,839,512.402
		2005	$	0.761335	$	0.874163		1,426,535.581
		2004	$	0.667300	$	0.761335		2,209,667.000
		2003	$	0.516143	$	0.667300		1,940,332.762
		2002	$	0.673747	$	0.516143		1,190,272.376
		2001	$	0.830281	$	0.673747		884,825.721
Transamerica Morgan Stanley Growth Opportunities VP – Initial Class(8)		2010	$	1.566698	$	2.094031		80,946.858
Subaccount Inception Date May 1, 2001		2009	$	1.161916	$	1.566698		104,478.155
		2008	$	1.995845	$	1.161916		129,598.102
		2007	$	1.645959	$	1.995845		122,767.731
		2006	$	1.589487	$	1.645959		207,978.216
		2005	$	1.388005	$	1.589487		270,796.205
		2004	$	1.208021	$	1.388005		375,815.000
		2003	$	0.934457	$	1.208021		181,897.513
		2002	$	1.106909	$	0.934457		205,145.974
		2001	$	1.000000	$	1.106909		998.580
Transamerica AEGON Money Market VP – Initial Class(2)		2010	$	1.359868	$	1.339818		2,052,601.423
Subaccount Inception Date July 5, 1994		2009	$	1.378481	$	1.359868		1,488,730.705
		2008	$	1.366515	$	1.378481		2,827,278.559
		2007	$	1.320697	$	1.366515		2,883,739.381
		2006	$	1.279908	$	1.320697		3,291,483.862
		2005	$	1.262642	$	1.279908		2,033,426.098
		2004	$	1.268884	$	1.262642		1,119,609.000
		2003	$	1.278447	$	1.268884		3,171,016.176

72

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Systematic Small/Mid Cap Value VP – Initial Class(9)		2010	$	4.960561	$	6.373715		47,803.935
Subaccount Inception Date July 5, 1994		2009	$	3.515723	$	4.960561		100,944.678
		2008	$	6.034985	$	3.515723		176,194.596
		2007	$	4.911009	$	6.034985		412,566.635
		2006	$	4.222214	$	4.911009		567,844.805
		2005	$	3.773614	$	4.222214		669,481.940
		2004	$	3.292202	$	3.773614		795,677.000
		2003	$	1.751037	$	3.292202		986,909.160
		2002	$	2.936020	$	1.751037		1,323,422.436
		2001	$	2.314129	$	2.936020		1,467,944.630
Transamerica AEGON U.S. Government Securities VP – Initial Class(3)		2010	$	1.761522	$	1.811910		317,672.236
Subaccount Inception Date August 3, 1994		2009	$	1.711486	$	1.761522		432,125.928
		2008	$	1.613596	$	1.711486		497,926.770
		2007	$	1.544502	$	1.613596		772,955.346
		2006	$	1.517955	$	1.544502		1,240,935.603
		2005	$	1.507049	$	1.517955		1,502,236.001
		2004	$	1.480911	$	1.507049		1,917,976.000
		2003	$	1.460102	$	1.480911		2,604,058.728
		2002	$	1.400560	$	1.460102		2,810,237.095
		2001	$	1.352742	$	1.400560		2,021,013.095
Transamerica Morgan Stanley Active International Allocation VP – Initial Class		2010 2009	$ $	1.508040 1.215941	$ $	1.611756 1.508040		243,791.273 507,708.806
Subaccount Inception Date July 5, 1994		2008	$	2.017826	$	1.215941		709,350.087
		2007	$	1.771791	$	2.017826		782,206.147
		2006	$	1.456027	$	1.771791		1,117,063.238
		2005	$	1.298698	$	1.456027		973,714.344
		2004	$	1.135997	$	1.298698		1,021,347.000
		2003	$	0.868180	$	1.135997		1,285,351.618
		2002	$	1.061346	$	0.868180		1,510,384.701
		2001	$	1.398424	$	1.061346		1,607,640.906
Transamerica Multi Managed Large Cap Core VP – Initial Class		2010	$	2.252680	$	2.644912		548,855.657
Subaccount Inception Date July 5, 1994		2009	$	1.572424	$	2.252680		762,991.939
		2008	$	2.755836	$	1.572424		407,949.532
		2007	$	2.560560	$	2.755836		686,075.370
		2006	$	2.355458	$	2.560560		1,036,973.108
		2005	$	2.184988	$	2.355458		1,379,910.917
		2004	$	1.966993	$	2.184988		1,611,174.000
		2003	$	1.648851	$	1.966993		1,814,818.120
		2002	$	2.001444	$	1.648851		2,392,336.584
		2001	$	2.185997	$	2.001444		2,618,053.899
Transamerica Morgan Stanley Mid-Cap Growth VP – Initial Class		2010	$	0.820868	$	1.082927		121,240.264
Subaccount Inception Date May 1, 2001		2009	$	0.518920	$	0.820868		116,002.780
		2008	$	0.980707	$	0.518920		117,589.938
		2007	$	0.812430	$	0.980707		147,752.654
		2006	$	0.750266	$	0.812430		201,521.987
		2005	$	0.708049	$	0.750266		305,361.548
		2004	$	0.670790	$	0.708049		275,618.000
		2003	$	0.531264	$	0.670790		640,612.133
		2002	$	0.805577	$	0.531264		211,455.972
		2001	$	1.000000	$	0.805577		121,404.814

73

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
PAM Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010	$	1.183164	$	1.214910		0.000
Subaccount Inception Date November 3, 2003		2009	$	1.152530	$	1.183164		0.000
		2008	$	1.089107	$	1.152530		0.000
		2007	$	1.045099	$	1.089107		0.000
		2006	$	1.029250	$	1.045099		0.000
		2005	$	1.024349	$	1.029250		0.000
		2004	$	1.010428	$	1.024349		0.000
		2003	$	1.000000	$	1.010428		0.000
Invesco V.I. Basic Value Fund – Series II Shares		2010	$	0.865048	$	0.911460		136,219.078
Subaccount Inception Date May 1, 2002		2009	$	0.594311	$	0.865048		129,389.969
		2008	$	1.254298	$	0.594311		170,620.007
		2007	$	1.256087	$	1.254298		221,178.634
		2006	$	1.128805	$	1.256087		239,485.205
		2005	$	1.086700	$	1.128805		335,969.852
		2004	$	0.995176	$	1.086700		436,781.000
		2003	$	0.757796	$	0.995176		490,605.689
		2002	$	1.000000	$	0.757796		271,012.792
Invesco V.I. Capital Appreciation Fund – Series II Shares		2010	$	0.874606	$	0.992710		15,003.013
Subaccount Inception Date May 1, 2002		2009	$	0.735365	$	0.874606		15,062.577
		2008	$	1.301026	$	0.735365		15,135.037
		2007	$	1.181969	$	1.301026		0.000
		2006	$	1.131131	$	1.181969		25,959.073
		2005	$	1.057344	$	1.131131		33,359.553
		2004	$	1.009328	$	1.057344		34,721.000
		2003	$	0.793030	$	1.009328		35,082.471
		2002	$	1.000000	$	0.793030		8,536.533
AllianceBernstein Growth and Income Portfolio – Class B		2010	$	0.859625	$	0.955329		144,748.761
Subaccount Inception Date May 1, 2001		2009	$	0.724993	$	0.859625		150,509.545
		2008	$	1.240900	$	0.724993		196,126.543
		2007	$	1.201232	$	1.240900		239,658.372
		2006	$	1.042190	$	1.201232		364,600.532
		2005	$	1.011301	$	1.042190		395,171.259
		2004	$	0.922939	$	1.011301		459,689.000
		2003	$	0.708682	$	0.922939		543,774.420
		2002	$	0.925362	$	0.708682		562,772.960
		2001	$	1.000000	$	0.925362		338,946.972
AllianceBernstein Large Cap Growth Portfolio – Class B		2010	$	0.750174	$	0.811761		219,409.776
Subaccount Inception Date May 1, 2001		2009	$	0.555356	$	0.750174		219,181.372
		2008	$	0.936742	$	0.555356		236,011.397
		2007	$	0.836930	$	0.936742		229,662.712
		2006	$	0.854933	$	0.836930		246,522.851
		2005	$	0.755575	$	0.854933		319,727.915
		2004	$	0.707865	$	0.755575		317,752.000
		2003	$	0.582390	$	0.707865		399,553.877
		2002	$	0.854751	$	0.582390		290,129.288
		2001	$	1.000000	$	0.854751		170,283.912

74

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
Fidelity VIP Contrafund ® Portfolio – Service Class 2		2010	$	1.114693	$	1.284131		1,050,517.594
Subaccount Inception Date May 1, 2000		2009	$	0.835183	$	1.114693		1,352,048.977
		2008	$	1.479293	$	0.835183		1,531,296.790
		2007	$	1.280112	$	1.479293		1,954,500.785
		2006	$	1.165967	$	1.280112		2,334,239.789
		2005	$	1.014517	$	1.165967		2,827,957.069
		2004	$	0.894215	$	1.014517		2,504,455.000
		2003	$	0.707994	$	0.894215		2,454,901.642
		2002	$	0.794977	$	0.707994		1,989,715.385
		2001	$	0.921935	$	0.794977		524,898.341
Fidelity VIP Equity-Income Portfolio – Service Class 2		2010	$	1.024801	$	1.160284		369,132.033
Subaccount Inception Date May 1, 2000		2009	$	0.800853	$	1.024801		452,350.673
		2008	$	1.421500	$	0.800853		569,250.657
		2007	$	1.424811	$	1.421500		734,846.082
		2006	$	1.205808	$	1.424811		660,349.638
		2005	$	1.159269	$	1.205808		797,626.378
		2004	$	1.057874	$	1.159269		913,774.000
		2003	$	0.825763	$	1.057874		869,203.178
		2002	$	1.011689	$	0.825763		875,533.684
		2001	$	1.083585	$	1.011689		539,459.987
Fidelity VIP Growth Portfolio – Service Class 2		2010	$	0.704251	$	0.859417		395,358.378
Subaccount Inception Date May 1, 2001		2009	$	0.558594	$	0.704251		622,900.836
		2008	$	1.076102	$	0.558594		976,971.974
		2007	$	0.862415	$	1.076102		475,624.786
		2006	$	0.821333	$	0.862415		377,845.439
		2005	$	0.790140	$	0.821333		353,495.640
		2004	$	0.777739	$	0.790140		399,469.000
		2003	$	0.595582	$	0.777739		415,789.933
		2002	$	0.867285	$	0.595582		311,639.983
		2001	$	1.000000	$	0.867285		224,892.535
Fidelity VIP Growth Opportunities Portfolio – Service Class 2		2010	$	0.625457	$	0.760866		6,890.468
Subaccount Inception Date May 1, 2000		2009	$	0.436426	$	0.625457		7,198.418
		2008	$	0.987483	$	0.436426		13,061.140
		2007	$	0.815561	$	0.987483		13,297.217
		2006	$	0.787455	$	0.815561		34,818.262
		2005	$	0.735424	$	0.787455		37,107.971
		2004	$	0.698366	$	0.735424		42,146.000
		2003	$	0.547765	$	0.698366		41,024.211
		2002	$	0.712884	$	0.547765		41,430.745
		2001	$	0.847762	$	0.712884		46,654.326
Fidelity VIP Mid Cap Portfolio – Service Class 2		2010	$	1.881811	$	2.383749		339,023.126
Subaccount Inception Date May 1, 2000		2009	$	1.366730	$	1.881811		464,091.532
		2008	$	2.297144	$	1.366730		624,657.608
		2007	$	2.021695	$	2.297144		760,669.946
		2006	$	1.825525	$	2.021695		1,128,393.163
		2005	$	1.569979	$	1.825525		1,345,697.241
		2004	$	1.278384	$	1.569979		1,369,189.000
		2003	$	0.938535	$	1.278384		1,418,766.692
		2002	$	1.058761	$	0.938535		1,109,568.411
		2001	$	1.113894	$	1.058761		301,333.651

75

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
Fidelity VIP Value Strategies Portfolio – Service Class 2		2010	$	1.158245	$	1.441694		249,868.338
Subaccount Inception Date May 1, 2002		2009	$	0.748075	$	1.158245		434,208.541
		2008	$	1.558794	$	0.748075		683,298.363
		2007	$	1.500649	$	1.558794		726,935.409
		2006	$	1.312926	$	1.500649		406,784.958
		2005	$	1.300991	$	1.312926		449,415.639
		2004	$	1.160021	$	1.300991		614,331.000
		2003	$	0.748203	$	1.160021		647,601.151
		2002	$	1.000000	$	0.748203		233,602.863
Franklin Income Securities Fund – Class 2		2010	$	0.897800	$	0.996636		292,278.913
Subaccount Inception Date May 1, 2007		2009	$	0.672044	$	0.897800		205,627.718
		2008	$	0.969756	$	0.672044		158,185.074
		2007	$	1.000000	$	0.969756		0.000
Mutual Shares Securities Fund – Class 2		2010	$	0.741580	$	0.812424		111,708.323
Subaccount Inception Date May 1, 2007		2009	$	0.597154	$	0.741580		7,247.600
		2008	$	0.963806	$	0.597154		17,918.890
		2007	$	1.000000	$	0.963806		311,072.773
Templeton Foreign Securities Fund – Class 2		2010	$	0.847271	$	0.904935		105,409.253
Subaccount Inception Date May 1, 2007		2009	$	0.627531	$	0.847271		47,206.249
		2008	$	1.068371	$	0.627531		71,416.402
		2007	$	1.000000	$	1.068371		18,804.598
Janus Aspen – Enterprise Portfolio – Service Shares		2010	$	0.570323	$	0.705305		68,577.541
Subaccount Inception Date October 9, 2000		2009	$	0.400762	$	0.570323		69,931.039
		2008	$	0.724577	$	0.400762		88,822.337
		2007	$	0.604154	$	0.724577		144,986.286
		2006	$	0.541187	$	0.604154		237,495.143
		2005	$	0.490316	$	0.541187		307,042.496
		2004	$	0.413107	$	0.490316		357,964.000
		2003	$	0.311130	$	0.413107		296,286.367
		2002	$	0.439334	$	0.311130		418,083.312
		2001	$	0.738276	$	0.439334		282,361.120
Janus Aspen – Perkins Mid Cap Value Portfolio – Service Shares		2010	$	1.325106	$	1.506124		7,316.297
Subaccount Inception Date October 9, 2000		2009	$	1.011876	$	1.325106		10,761.115
		2008	$	1.424498	$	1.011876		12,810.612
		2007	$	1.349213	$	1.424498		25,162.315
		2006	$	1.190103	$	1.349213		25,439.595
		2005	$	1.098065	$	1.190103		105,875.829
		2004	$	0.946169	$	1.098065		109,523.000
		2003	$	0.680071	$	0.946169		107,005.725
		2002	$	0.901410	$	0.680071		118,269.564
		2001	$	0.998696	$	0.901410		106,055.256
Janus Aspen – Worldwide Portfolio – Service Shares		2010	$	0.595641	$	0.677922		221,448.992
Subaccount Inception Date October 9, 2000		2009	$	0.440003	$	0.595641		217,213.593
		2008	$	0.809235	$	0.440003		208,433.909
		2007	$	0.751117	$	0.809235		939,584.615
		2006	$	0.646408	$	0.751117		180,261.053
		2005	$	0.621473	$	0.646408		228,341.250
		2004	$	0.603495	$	0.621473		316,508.000
		2003	$	0.495255	$	0.603495		572,760.739
		2002	$	0.676640	$	0.495255		1,288,017.381
		2001	$	0.887611	$	0.676640		412,917.680

76

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.50%
Subaccount			Beginning AUV		Ending AUV		# Units
MFS ® New Discovery Series – Service Class		2010	$	1.139562	$	1.526253		14,292.429
Subaccount Inception Date May 1, 2002		2009	$	0.709950	$	1.139562		25,285.215
		2008	$	1.191553	$	0.709950		17,607.741
		2007	$	1.182905	$	1.191553		17,389.054
		2006	$	1.063134	$	1.182905		45,937.645
		2005	$	1.027353	$	1.063134		35,175.960
		2004	$	0.981842	$	1.027353		72,529.000
		2003	$	0.746874	$	0.981842		64,009.227
		2002	$	1.000000	$	0.746874		10,623.871
MFS ® Total Return Series – Service Class		2010	$	1.158823	$	1.251683		314,052.539
Subaccount Inception Date May 1, 2002		2009	$	0.999117	$	1.158823		348,195.948
		2008	$	1.305576	$	0.999117		403,344.449
		2007	$	1.275094	$	1.305576		639,322.433
		2006	$	1.159404	$	1.275094		761,196.189
		2005	$	1.146954	$	1.159404		708,244.543
		2004	$	1.048576	$	1.146954		825,794.000
		2003	$	0.917454	$	1.048576		855,610.931
		2002	$	1.000000	$	0.917454		243,516.671
Transamerica BlackRock Tactical Allocation VP – Service Class		2010	$	1.003183	$	1.099477		624,121.324
Subaccount inception date May 1, 2009		2009	$	0.993364	$	1.003183		0.000
Transamerica Index 35 VP – Service Class		2010	$	0.998250	$	1.076184		0.000
Subaccount inception date November 19, 2009		2009	$	0.999959	$	0.998250		0.000
Transamerica Index 50 VP – Service Class		2010	$	0.996170	$	1.086383		0.000
Subaccount inception date May 1, 2008		2009	$	0.991643	$	0.996170		0.000
Transamerica Index 75 VP – Service Class		2010	$	0.999366	$	1.112634		3,000.037
Subaccount inception date May 1, 2008		2009	$	0.988774	$	0.999366		0.000
Transamerica Index 100 VP – Service Class		2010	$	1.024203	$	1.154451		0.000
Subaccount inception date November 19, 2009		2009	$	0.999959	$	1.024203		0.000
Transamerica JPMorgan Mid Cap Value VP – Service Class		2010	$	1.029652	$	1.245950		11,684.405
Subacount inception date November 19, 2009		2009	$	0.985158	$	1.029652		0.000
	Year		1.40%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation - Conservative VP – Initial Class		2010	$	1.208404	$	1.298163		1,808,229.063
Subaccount Inception Date May 1, 2002		2009	$	0.978492	$	1.208404		1,616,126.062
		2008	$	1.258893	$	0.978492		1,269,145.114
		2007	$	1.200002	$	1.258893		779,590.723
		2006	$	1.111748	$	1.200002		345,680.463
		2005	$	1.071740	$	1.111748		78,032.265
		2004	$	1.000000	$	1.071740		0.000
Transamerica Asset Allocation - Growth VP – Initial Class		2010	$	1.131050	$	1.282200		2,612,123.891
Subaccount Inception Date May 1, 2002		2009	$	0.883458	$	1.131050		2,550,747.311
		2008	$	1.484088	$	0.883458		2,367,836.351
		2007	$	1.396672	$	1.484088		1,992,435.620
		2006	$	1.224872	$	1.396672		944,859.099
		2005	$	1.106529	$	1.224872		0.000
		2004	$	1.000000	$	1.106529		0.000

77

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.40%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation - Moderate VP – Initial Class		2010	$	1.222500	$	1.330721		3,534,650.363
Subaccount Inception Date May 1, 2002		2009	$	0.980694	$	1.222500		2,434,412.681
		2008	$	1.343250	$	0.980694		1,780,902.983
		2007	$	1.261784	$	1.343250		942,790.435
		2006	$	1.147670	$	1.261784		723,991.790
		2005	$	1.083067	$	1.147670		37.825
		2004	$	1.000000	$	1.083067		21,239.000
Transamerica Asset Allocation - Moderate Growth VP – Initial Class		2010	$	1.195513	$	1.329067		4,452,731.380
Subaccount Inception Date May 1, 2002		2009	$	0.945909	$	1.195513		3,843,014.894
		2008	$	1.426601	$	0.945909		3,238,311.508
		2007	$	1.341867	$	1.426601		2,640,862.299
		2006	$	1.195249	$	1.341867		1,023,098.708
		2005	$	1.102655	$	1.195249		105,286.121
		2004	$	1.000000	$	1.102655		0.000
Transamerica International Moderate Growth VP – Service Class		2010	$	0.883896	$	0.960974		146,454.323
Subaccount Inception Date May 1, 2006		2009	$	0.693018	$	0.883896		117,482.929
		2008	$	1.000000	$	0.693018		27,202.488
		2007	$	1.031445	$	1.103520		0.000
		2006	$	1.000000	$	1.031445		0.000
Transamerica BlackRock Large Cap Value VP – Initial Class		2010	$	1.147724	$	1.250103		17,427,872.730
Subaccount Inception Date May 1, 2000		2009	$	1.020960	$	1.147724		6,964,818.492
		2008	$	1.566025	$	1.020960		552,739.383
		2007	$	1.517687	$	1.566025		258,205.851
		2006	$	1.316157	$	1.517687		115,386.459
		2005	$	1.151057	$	1.316157		34,278.496
		2004	$	1.000000	$	1.151057		10,059.000
Transamerica Clarion Global Real Estate Securities VP – Initial Class		2010	$	1.453717	$	1.658272		409,518.523
Subaccount Inception Date May 1, 2002		2009	$	1.104858	$	1.453717		348,296.330
		2008	$	1.944444	$	1.104858		201,660.349
		2007	$	2.113530	$	1.944444		144,198.971
		2006	$	1.506262	$	2.113530		152,989.962
		2005	$	1.345941	$	1.506262		26,283.066
		2004	$	1.000000	$	1.345941		0.000
Transamerica JPMorgan Enhanced Index VP – Initial Class		2010	$	1.027676	$	1.167298		4,616,902.558
Subaccount Inception Date May 1, 1997		2009	$	0.804122	$	1.027676		4,336,397.693
		2008	$	1.301557	$	0.804122		2,627,588.506
		2007	$	1.262582	$	1.301557		1,389,377.717
		2006	$	1.110222	$	1.262582		209,234.078
		2005	$	1.088084	$	1.110222		46,018.109
		2004	$	1.000000	$	1.088084		4,029.000
Transamerica Jennison Growth VP – Initial Class		2010	$	1.159084	$	1.283258		8,042,354.242
Subaccount Inception Date November 20, 1996		2009	$	0.833538	$	1.159084		745,691.102
		2008	$	1.341834	$	0.833538		505,056.967
		2007	$	1.220222	$	1.341834		327,454.246
		2006	$	1.213449	$	1.220222		96,571.340
		2005	$	1.081308	$	1.213449		7,693.151
		2004	$	1.000000	$	1.081308		24,015.000
Transamerica Morgan Stanley Capital Growth VP – Initial Class(5)		2010	$	1.003646	$	1.261356		2,458,797.677
Subaccount Inception Date May 1, 2000		2009	$	0.795640	$	1.003646		2,247,122.863
		2008	$	1.267904	$	0.795640		1,896,952.211
		2007	$	1.272565	$	1.267904		1,779,972.762
		2006	$	1.088360	$	1.272565		1,808,935.474
		2005	$	1.060317	$	1.088360		136,941.699
		2004	$	1.000000	$	1.060317		8,271.000

78

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.40%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica AEGON High Yield Bond VP – Initial Class		2010	$	1.284345	$	1.424156		1,554,950.755
Subaccount Inception Date June 2, 1998		2009	$	0.884503	$	1.284345		1,330,932.952
		2008	$	1.199092	$	0.884503		669,951.562
		2007	$	1.193838	$	1.199092		499,485.825
		2006	$	1.091063	$	1.193838		300,856.059
		2005	$	1.086592	$	1.091063		225,616.466
		2004	$	1.000000	$	1.086592		0.000
Transamerica MFS International Equity VP – Initial Class		2010	$	1.336663	$	1.456586		554,998.817
Subaccount Inception Date May 1, 2001		2009	$	1.021513	$	1.336663		405,009.277
		2008	$	1.600815	$	1.021513		247,549.884
		2007	$	1.487219	$	1.600815		228,355.054
		2006	$	1.225328	$	1.487219		181,320.123
		2005	$	1.100814	$	1.225328		18,244.385
		2004	$	1.000000	$	1.100814		7,927.000
Transamerica PIMCO Total Return VP – Initial Class		2010	$	1.265712	$	1.338049		4,175,329.016
Subaccount Inception Date May 1, 2002		2009	$	1.106069	$	1.265712		3,340,498.765
		2008	$	1.153806	$	1.106069		2,465,684.425
		2007	$	1.073938	$	1.153806		1,091,102.022
		2006	$	1.044934	$	1.073938		514,319.044
		2005	$	1.035410	$	1.044934		166,116.359
		2004	$	1.000000	$	1.035410		45,589.000
Transamerica T. Rowe Price Small Cap VP – Initial ClassClass		2010	$	1.092695	$	1.448590		733,981.374
Subaccount Inception Date May 1, 2000		2009	$	0.798829	$	1.092695		540,802.572
		2008	$	1.270723	$	0.798829		223,967.663
		2007	$	1.175644	$	1.270723		212,779.843
		2006	$	1.150784	$	1.175644		279,114.168
		2005	$	1.054924	$	1.150784		224,705.293
		2004	$	1.000000	$	1.054924		0.000
Transamerica WMC Diversified Equity VP – Initial Class(6)		2010	$	1.069979	$	1.232981		4,466,945.436
Subaccount Inception Date May 1, 2000		2009	$	0.845500	$	1.069979		3,138,287.294
		2008	$	1.522172	$	0.845500		256,557.116
		2007	$	1.339397	$	1.522172		146,517.877
		2006	$	1.143274	$	1.339397		98,676.725
		2005	$	1.078671	$	1.143274		25,990.445
		2004	$	1.000000	$	1.078671		0.000
Transamerica Multi-Managed Balanced VP – Initial Class(1)		2010	$	1.173982	$	1.437038		463,845.274
Subaccount Inception Date May 1, 2002		2009	$	0.942547	$	1.173982		330,402.172
		2008	$	1.413931	$	0.942547		181,476.241
		2007	$	1.262106	$	1.413931		91,315.141
		2006	$	1.172724	$	1.262106		19,666.507
		2005	$	1.101394	$	1.172724		0.000
		2004	$	1.000000	$	1.101394		0.000
Transamerica AllianceBernstein Dynamic Allocation VP – Initial Class(7)		2010	$	1.158833	$	1.248997		499,064.238
Subaccount Inception Date May 1, 2002		2009	$	0.894955	$	1.158833		444,310.617
		2008	$	1.437647	$	0.894955		242,463.806
		2007	$	1.228875	$	1.437647		201,520.482
		2006	$	1.123579	$	1.228875		104,025.890
		2005	$	1.096676	$	1.123579		45,176.179
		2004	$	1.000000	$	1.096676		0.000

79

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.40%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica WMC Diversified Growth VP – Initial Class		2010	$	1.066879	$	1.239560		9,458,998.416
Subaccount Inception Date May 1, 2000		2009	$	0.837351	$	1.066879		8,047,670.948
		2008	$	1.572618	$	0.837351		5,872,697.749
		2007	$	1.371410	$	1.572618		5,140,314.700
		2006	$	1.279101	$	1.371410		3,963,153.692
		2005	$	1.112918	$	1.279101		32,523.541
		2004	$	1.000000	$	1.112918		42,721.000
Transamerica Morgan Stanley Growth Opportunities VP – Initial Class(8)		2010	$	1.210698	$	1.619791		386,106.718
Subaccount Inception Date May 1, 2001		2009	$	0.896999	$	1.210698		217,035.134
		2008	$	1.539252	$	0.896999		121,857.757
		2007	$	1.268155	$	1.539252		22,832.515
		2006	$	1.223440	$	1.268155		9,924.280
		2005	$	1.067308	$	1.223440		15,105.422
		2004	$	1.000000	$	1.067308		7,883.000
Transamerica AEGON Money Market VP – Initial Class(2)		2010	$	1.080742	$	1.065836		3,919,954.538
Subaccount Inception Date July 5, 1994		2009	$	1.094434	$	1.080742		4,046,436.044
		2008	$	1.083864	$	1.094434		2,916,538.193
		2007	$	1.046489	$	1.083864		1,443,810.094
		2006	$	1.013179	$	1.046489		1,372,626.314
		2005	$	0.998530	$	1.013179		240,266.041
		2004	$	1.000000	$	0.998530		26,102.000
Transamerica Systematic Small/Mid Cap Value VP – Initial Class(9)		2010	$	1.489184	$	1.915306		6,704,007.709
Subaccount Inception Date July 5, 1994		2009	$	1.054393	$	1.489184		6,488,979.823
		2008	$	1.808140	$	1.054393		6,016,829.447
		2007	$	1.469930	$	1.808140		4,539,032.842
		2006	$	1.262524	$	1.469930		3,661,248.997
		2005	$	1.127273	$	1.262524		1,574,790.637
		2004	$	1.000000	$	1.127273		385,112.000
Transamerica AEGON U.S. Government Securities VP – Initial Class(3)		2010	$	1.208102	$	1.243887		3,618,540.361
Subaccount Inception Date August 3, 1994		2009	$	1.172629	$	1.208102		3,326,718.905
		2008	$	1.104466	$	1.172629		2,736,470.560
		2007	$	1.056130	$	1.104466		1,053,742.118
		2006	$	1.036964	$	1.056130		941,655.528
		2005	$	1.028493	$	1.036964		438,226.033
		2004	$	1.000000	$	1.028493		45,345.000
Transamerica Morgan Stanley Active International Allocation VP – Initial Class		2010	$	1.317982	$	1.410001		4,488,159.987
Subaccount Inception Date July 5, 1994		2009	$	1.061641	$	1.317982		4,263,484.413
		2008	$	1.760016	$	1.061641		4,014,823.805
		2007	$	1.543886	$	1.760016		3,381,923.685
		2006	$	1.267498	$	1.543886		2,279,959.082
		2005	$	1.129437	$	1.267498		870,713.016
		2004	$	1.000000	$	1.129437		412,401.000
Transamerica Multi Managed Large Cap Core VP – Initial Class		2010	$	1.144770	$	1.345419		7,946,412.248
Subaccount Inception Date July 5, 1994		2009	$	0.798292	$	1.144770		7,923,385.339
		2008	$	1.397708	$	0.798292		4,764,335.672
		2007	$	1.297386	$	1.397708		3,585,863.197
		2006	$	1.192296	$	1.297386		2,128,005.922
		2005	$	1.104914	$	1.192296		1,278,174.456
		2004	$	1.000000	$	1.104914		450,934.000

80

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.40%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Morgan Stanley Mid-Cap Growth VP – Initial Class		2010	$	1.245886	$	1.645247		203,730.142
Subaccount Inception Date May 1, 2001		2009	$	0.786821	$	1.245886		140,924.190
		2008	$	1.485537	$	0.786821		20,875.957
		2007	$	1.229417	$	1.485537		4,363.746
		2006	$	1.134233	$	1.229417		0.000
		2005	$	1.069338	$	1.134233		0.000
		2004	$	1.000000	$	1.069338		0.000
PAM Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010	$	1.191066	$	1.224231		46,229.686
Subaccount Inception Date November 3, 2003		2009	$	1.159089	$	1.191066		45,916.533
		2008	$	1.094223	$	1.159089		50,676.914
		2007	$	1.048973	$	1.094223		0.000
		2006	$	1.032040	$	1.048973		0.000
		2005	$	1.026124	$	1.032040		0.000
		2004	$	1.000000	$	1.026124		0.000
Invesco V.I. Basic Value Fund – Series II Shares		2010	$	0.850525	$	0.897040		114,263.994
Subaccount Inception Date May 1, 2002		2009	$	0.583752	$	0.850525		66,106.290
		2008	$	1.230793	$	0.583752		21,182.505
		2007	$	1.231326	$	1.230793		29,572.430
		2006	$	1.105455	$	1.231326		26,500.408
		2005	$	1.063187	$	1.105455		20,302.130
		2004	$	1.000000	$	1.063187		0.000
Invesco V.I. Capital Appreciation Fund – Series II Shares		2010	$	0.887145	$	1.007936		19.286
Subaccount Inception Date May 1, 2002		2009	$	0.745172	$	0.887145		19.286
		2008	$	1.317059	$	0.745172		19.286
		2007	$	1.195355	$	1.317059		19.286
		2006	$	1.142812	$	1.195355		21.478
		2005	$	1.067228	$	1.142812		25.896
		2004	$	1.000000	$	1.067228		14,542.000
AllianceBernstein Growth and Income Portfolio – Class B		2010	$	0.918890	$	1.022195		351,108.882
Subaccount Inception Date May 1, 2001		2009	$	0.774206	$	0.918890		396,438.149
		2008	$	1.323805	$	0.774206		167,262.708
		2007	$	1.280214	$	1.323805		144,024.830
		2006	$	1.109628	$	1.280214		53,076.383
		2005	$	1.075680	$	1.109628		27,875.503
		2004	$	1.000000	$	1.075680		0.000
AllianceBernstein Large Cap Growth Portfolio – Class B		2010	$	1.078218	$	1.167877		5,342.787
Subaccount Inception Date May 1, 2001		2009	$	0.797427	$	1.078218		28,010.461
		2008	$	1.343730	$	0.797427		109,803.986
		2007	$	1.199362	$	1.343730		27,335.748
		2006	$	1.223965	$	1.199362		21,992.277
		2005	$	1.080644	$	1.223965		0.000
		2004	$	1.000000	$	1.080644		0.000
Fidelity VIP Contrafund ® Portfolio – Service Class 2		2010	$	1.217417	$	1.403845		1,971,712.535
Subaccount Inception Date May 1, 2000		2009	$	0.911262	$	1.217417		1,718,034.370
		2008	$	1.612455	$	0.911262		1,297,789.117
		2007	$	1.393955	$	1.612455		750,941.156
		2006	$	1.268419	$	1.393955		257,581.923
		2005	$	1.102587	$	1.268419		61,961.612
		2004	$	1.000000	$	1.102587		45,827.000

81

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.40%
Subaccount			Beginning AUV		Ending AUV		# Units
Fidelity VIP Equity-Income Portfolio – Service Class 2		2010	$	0.965701	$	1.094438		602,278.674
Subaccount Inception Date May 1, 2000		2009	$	0.753925	$	0.965701		324,106.760
		2008	$	1.336875	$	0.753925		154,597.774
		2007	$	1.338663	$	1.336875		113,025.652
		2006	$	1.131794	$	1.338663		25,685.344
		2005	$	1.087049	$	1.131794		0.000
		2004	$	1.000000	$	1.087049		0.000
Fidelity VIP Growth Portfolio – Service Class 2		2010	$	0.923404	$	1.127961		295,671.341
Subaccount Inception Date May 1, 2001		2009	$	0.731706	$	0.923404		136,255.317
		2008	$	1.408204	$	0.731706		98,568.006
		2007	$	1.127447	$	1.408204		48,098.777
		2006	$	1.072688	$	1.127447		0.000
		2005	$	1.030936	$	1.072688		0.000
		2004	$	1.000000	$	1.030936		0.000
Fidelity VIP Growth Opportunities Portfolio – Service Class 2		2010	$	0.910178	$	1.108311		37,180.929
Subaccount Inception Date May 1, 2000		2009	$	0.634480	$	0.910178		12,469.031
		2008	$	1.434159	$	0.634480		0.000
		2007	$	1.183297	$	1.434159		0.000
		2006	$	1.141396	$	1.183297		0.000
		2005	$	1.064926	$	1.141396		0.000
		2004	$	1.000000	$	1.064926		0.000
Fidelity VIP Mid Cap Portfolio – Service Class 2		2010	$	1.446806	$	1.834514		2,427,383.356
Subaccount Inception Date May 1, 2000		2009	$	1.049758	$	1.446806		2,149,179.642
		2008	$	1.762637	$	1.049758		1,438,647.910
		2007	$	1.549742	$	1.762637		778,468
		2006	$	1.397981	$	1.549742		470,435.387
		2005	$	1.201095	$	1.397981		155,896.293
		2004	$	1.000000	$	1.201095		71,612.000
Fidelity VIP Value Strategies Portfolio – Service Class 2		2010	$	0.995655	$	1.240539		696,520.853
Subaccount Inception Date May 1, 2002		2009	$	0.642432	$	0.995655		443,546.866
		2008	$	1.337344	$	0.642432		355,553.744
		2007	$	1.286179	$	1.337344		141,054.574
		2006	$	1.124168	$	1.286179		50,590.013
		2005	$	1.112856	$	1.124168		37,207.347
		2004	$	1.000000	$	1.112856		9,865.000
Franklin Income Securities Fund – Class 2		2010	$	0.900151	$	1.000224		955,941.033
Subaccount Inception Date May 1, 2007		2009	$	0.673149	$	0.900151		522,321.460
		2008	$	0.970390	$	0.673149		119,161.290
		2007	$	1.000000	$	0.970390		22,506.309
Mutual Shares Securities Fund – Class 2		2010	$	0.743536	$	0.815369		367,116.960
Subaccount Inception Date May 1, 2007		2009	$	0.598140	$	0.743536		165,994.494
		2008	$	0.964440	$	0.598140		20,748.590
		2007	$	1.000000	$	0.964440		0.000
Templeton Foreign Securities Fund – Class 2		2010	$	0.850630	$	0.909409		734,707.331
Subaccount Inception Date May 1, 2007		2009	$	0.629392	$	0.850630		413,261.306
		2008	$	1.070483	$	0.629392		402,133.344
		2007	$	1.000000	$	1.070483		138,084.565

82

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.40%
Subaccount			Beginning AUV		Ending AUV		# Units
Janus Aspen – Enterprise Portfolio – Service Shares		2010	$	1.342446	$	1.661776		273,365.894
Subaccount Inception Date October 9, 2000		2009	$	0.942407	$	1.342446		196,520.477
		2008	$	1.702223	$	0.942407		123,399.123
		2007	$	1.417910	$	1.702223		41,890.692
		2006	$	1.268874	$	1.417910		114,185.097
		2005	$	1.148456	$	1.268874		94,877.196
		2004	$	1.000000	$	1.148456		0.000
Janus Aspen - Perkins Mid Cap Value Portfolio – Service Shares		2010	$	1.357615	$	1.544589		9,115.353
Subaccount Inception Date October 9, 2000		2009	$	1.035685	$	1.357615		9,076.884
		2008	$	1.456563	$	1.035685		449.190
		2007	$	1.378222	$	1.456563		458.356
		2006	$	1.214505	$	1.378222		0.000
		2005	$	1.119482	$	1.214505		0.000
		2004	$	1.000000	$	1.119482		0.000
Janus Aspen – Worldwide Portfolio – Service Shares		2010	$	0.989907	$	1.127762		587,286.387
Subaccount Inception Date October 9, 2000		2009	$	0.730520	$	0.989907		449,530.560
		2008	$	1.342201	$	0.730520		233,742.804
		2007	$	1.244559	$	1.342201		116,363.887
		2006	$	1.070007	$	1.244559		53,547.721
		2005	$	1.027724	$	1.070007		0.000
		2004	$	1.000000	$	1.027724		0.000
MFS ® New Discovery Series – Service Class		2010	$	1.161359	$	1.556961		160,537.665
Subaccount Inception Date May 1, 2002		2009	$	0.722822	$	1.161359		89,120.202
		2008	$	1.211941	$	0.722822		34,208.399
		2007	$	1.201951	$	1.211941		24,905.552
		2006	$	1.079196	$	1.201951		0.000
		2005	$	1.041845	$	1.079196		0.000
		2004	$	1.000000	$	1.041845		0.000
MFS ® Total Return Series – Service Class		2010	$	1.102006	$	1.191485		822,855.037
Subaccount Inception Date May 1, 2002		2009	$	0.949190	$	1.102006		681,488.346
		2008	$	1.239118	$	0.949190		186,508.360
		2007	$	1.208985	$	1.239118		64,681.083
		2006	$	1.098210	$	1.208985		33,412.191
		2005	$	1.085350	$	1.098210		0.000
		2004	$	1.000000	$	1.085350		0.000
Transamerica BlackRock Large Cap Value VP – Service Class		2010	$	1.230568	$	1.336774		0.000
Subaccount inception date May 1, 2000		2009	$	1.000000	$	1.230568		0.000
Transamerica BlackRock Tactical Allocation VP – Service Class		2010	$	1.003303	$	1.100689		395,084.144
Subaccount inception date May 1, 2009		2009	$	0.993367	$	1.003303		0.000
Transamerica Index 35 VP – Service Class		2010	$	0.998364	$	1.077372		0.000
Subaccount inception date November 19, 2009		2009	$	0.999962	$	0.998364		0.000
Transamerica Index 50 VP – Service Class		2010	$	0.996289	$	1.087596		0.000
Subaccount inception date May 1, 2008		2009	$	0.991646	$	0.996289		0.000
Transamerica Index 75 VP – Service Class		2010	$	0.999483	$	1.113867		0.000
Subaccount inception date May 1, 2008		2009	$	0.988776	$	0.999483		0.000
Transamerica Index 100 VP – Service Class		2010	$	1.024327	$	1.155720		0.000
Subaccount inception date November 19, 2009		2009	$	0.999962	$	1.024327		0.000
Transamerica JPMorgan Mid Cap Value VP – Service Class		2010	$	1.029767	$	1.247323		25,999.568
Subacount inception date November 19, 2009		2009	$	0.985161	$	1.029767		0.000
Transamerica PIMCO Total Return VP – Service Class		2010	$	1.108333	$	1.168844		0.000
Subaccount inception date May 1, 2002		2009	$	1.000000	$	1.108333		0.000

83

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.25%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica Asset Allocation - Conservative VP – Initial Class		2010	$	0.983355	$	1.057969		163,608.614
Subaccount Inception Date May 1, 2002		2009	$	0.795090	$	0.983355		287,379.543
		2008	$	1.021416	$	0.795090		29,044.891
		2007	$	1.000000	$	1.021416		0.000
Transamerica Asset Allocation - Growth VP – Initial Class		2010	$	0.773706	$	0.878403		43,744.168
Subaccount Inception Date May 1, 2002		2009	$	0.603440	$	0.773706		86,447.348
		2008	$	1.012200	$	0.603440		56,071.597
		2007	$	1.000000	$	1.012200		0.000
Transamerica Asset Allocation - Moderate VP – Initial Class		2010	$	0.939452	$	1.024133		52,355.906
Subaccount Inception Date May 1, 2002		2009	$	0.752513	$	0.939452		88,838.746
		2008	$	1.029175	$	0.752513		49,711.129
		2007	$	1.000000	$	1.029175		0.000
Transamerica Asset Allocation - Moderate Growth VP – Initial Class		2010	$	0.858024	$	0.955289		103,718.704
Subaccount Inception Date May 1, 2002		2009	$	0.677869	$	0.858024		25,322.940
		2008	$	1.020832	$	0.677869		11,234.727
		2007	$	1.000000	$	1.020832		0.000
Transamerica BlackRock Large Cap Value VP – Initial Class		2010	$	0.716970	$	0.782085		2,624,342.547
Subaccount Inception Date May 1, 2000		2009	$	0.636826	$	0.716970		498,832.746
		2008	$	0.975360	$	0.636826		7,078.250
		2007	$	1.000000	$	0.975360		0.000
Transamerica Clarion Global Real Estate Securities VP – Initial Class		2010	$	0.661431	$	0.755619		103,545.037
Subaccount Inception Date May 1, 2002		2009	$	0.501961	$	0.661431		111,925.268
		2008	$	0.882088	$	0.501961		87,241.772
		2007	$	1.000000	$	0.882088		9,551
Transamerica JPMorgan Enhanced Index VP – Initial Class		2010	$	0.771901	$	0.878069		955,697.448
Subaccount Inception Date May 1, 1997		2009	$	0.603098	$	0.771901		867,921.368
		2008	$	0.974724	$	0.603098		350,271.455
		2007	$	1.000000	$	0.974724		0.000
Transamerica Jennison Growth VP – Initial Class		2010	$	0.924062	$	1.024559		898,271.027
Subaccount Inception Date November 20, 1996		2009	$	0.663540	$	0.924062		58,255.688
		2008	$	1.066570	$	0.663540		56,353.894
		2007	$	1.000000	$	1.066570		0.000
Transamerica Morgan Stanley Capital Growth VP – Initial Class(5)		2010	$	0.757969	$	0.954020		217,574.431
Subaccount Inception Date May 1, 2000		2009	$	0.599986	$	0.757969		117,397.925
		2008	$	0.954687	$	0.599986		117,423.314
		2007	$	1.000000	$	0.954687		0.000
Transamerica AEGON High Yield Bond VP – Initial Class		2010	$	1.042268	$	1.157441		135,827.931
Subaccount Inception Date June 2, 1998		2009	$	0.716731	$	1.042268		139,736.995
		2008	$	0.970205	$	0.716731		179,144.803
		2007	$	1.000000	$	0.970205		5,022
Transamerica MFS International Equity VP – Initial Class		2010	$	0.844275	$	0.921384		57,930.215
Subaccount Inception Date May 1, 2001		2009	$	0.644262	$	0.844275		35,539.162
		2008	$	1.008122	$	0.644262		784.555
		2007	$	1.000000	$	1.008122		0.000
Transamerica PIMCO Total Return VP – Initial Class		2010	$	1.166474	$	1.234951		944,465.364
Subaccount Inception Date May 1, 2002		2009	$	1.017843	$	1.166474		488,196.617
		2008	$	1.060211	$	1.017843		179,905.021
		2007	$	1.000000	$	1.060211		0.000

84

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.25%
Subaccount			Beginning AUV		Ending AUV		# Units
Transamerica T. Rowe Price Small Cap VP – Initial ClassClass		2010	$	0.885390	$	1.175500		99,571.206
Subaccount Inception Date May 1, 2000		2009	$	0.646321	$	0.885390		85,462.541
		2008	$	1.026592	$	0.646321		75,660.367
		2007	$	1.000000	$	1.026592		0.000
Transamerica WMC Diversified Equity VP – Initial Class(6)		2010	$	0.758326	$	0.875147		809,907.023
Subaccount Inception Date May 1, 2000		2009	$	0.598347	$	0.758326		513,815.239
		2008	$	1.075611	$	0.598347		64,968.606
		2007	$	1.000000	$	1.075611		0.000
Transamerica Multi-Managed Balanced VP – Initial Class(1)		2010	$	0.893729	$	1.095604		9,831.489
Subaccount Inception Date May 1, 2002		2009	$	0.716487	$	0.893729		0.000
		2008	$	1.073217	$	0.716487		0.000
		2007	$	1.000000	$	1.073217		0.000
Transamerica AllianceBernstein Dynamic Allocation VP – Initial Class(7)		2010	$	0.928044	$	1.001737		10,304.467
Subaccount Inception Date May 1, 2002		2009	$	0.715652	$	0.928044		0.000
		2008	$	1.147892	$	0.715652		0.000
		2007	$	1.000000	$	1.147892		0.000
Transamerica WMC Diversified Growth VP – Initial Class		2010	$	0.760941	$	0.885413		1,560,393.024
Subaccount Inception Date May 1, 2000		2009	$	0.596343	$	0.760941		1,328,910.460
		2008	$	1.118328	$	0.596343		439,640.646
		2007	$	1.000000	$	1.118328		0.000
Transamerica Morgan Stanley Growth Opportunities VP – Initial Class(8)		2010	$	0.928130	$	1.243587		23,340.828
Subaccount Inception Date May 1, 2001		2009	$	0.686632	$	0.928130		14,853.930
		2008	$	1.176530	$	0.686632		2,431.395
		2007	$	1.000000	$	1.176530		0.000
Transamerica AEGON Money Market VP – Initial Class(2)		2010	$	1.024461	$	1.011863		278,846.615
Subaccount Inception Date July 5, 1994		2009	$	1.035943	$	1.024461		175,700.728
		2008	$	1.024409	$	1.035943		180,892.971
		2007	$	1.000000	$	1.024409		0.000
Transamerica Systematic Small/Mid Cap Value VP – Initial Class(9)		2010	$	0.920358	$	1.185467		1,083,400.299
Subaccount Inception Date July 5, 1994		2009	$	0.650679	$	0.920358		925,908.280
		2008	$	1.114169	$	0.650679		817,966.099
		2007	$	1.000000	$	1.114169		51,065
Transamerica AEGON U.S. Government Securities VP – Initial Class(3)		2010	$	1.130004	$	1.165195		280,082.228
Subaccount Inception Date August 3, 1994		2009	$	1.095199	$	1.130004		179,774.086
		2008	$	1.030008	$	1.095199		268,176.283
		2007	$	1.000000	$	1.030008		0.000
Transamerica Morgan Stanley Active International Allocation VP – Initial Class		2010	$	0.795520	$	0.852323		741,595.095
Subaccount Inception Date July 5, 1994		2009	$	0.639849	$	0.795520		761,038.355
		2008	$	1.059192	$	0.639849		607,184.790
		2007	$	1.000000	$	1.059192		0.000
Transamerica Multi Managed Large Cap Core VP – Initial Class		2010	$	0.836016	$	0.984005		694,822.922
Subaccount Inception Date July 5, 1994		2009	$	0.582120	$	0.836016		625,211.959
		2008	$	1.017707	$	0.582120		275,627.709
		2007	$	1.000000	$	1.017707		0.000
Transamerica Morgan Stanley Mid-Cap Growth VP – Initial Class		2010	$	0.942178	$	1.246029		52,962.884
Subaccount Inception Date May 1, 2001		2009	$	0.594140	$	0.942178		12,360.682
		2008	$	1.120084	$	0.594140		12,752.965
		2007	$	1.000000	$	1.120084		0.000

85

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.25%
Subaccount			Beginning AUV		Ending AUV		# Units
PAM Transamerica AEGON U.S. Government Securities VP – Service Class(3)		2010 2009	$ $	1.123009 1.091239	$ $	1.155985 1.123009		0.000 0.000
Subaccount Inception Date November 3, 2003		2008	$	1.028649	$	1.091239		0.000
		2007	$	1.000000	$	1.028649		0.000
Invesco V.I. Basic Value Fund – Series II Shares		2010	$	0.662709	$	0.699985		6,730.038
Subaccount Inception Date May 1, 2002		2009	$	0.454172	$	0.662709		6,730.038
		2008	$	0.956149	$	0.454172		6,730.038
		2007	$	1.000000	$	0.956149		0.000
Invesco V.I. Capital Appreciation Fund – Series II Shares		2010	$	0.705296	$	0.802509		0.000
Subaccount Inception Date May 1, 2002		2009	$	0.591556	$	0.705296		0.000
		2008	$	1.044012	$	0.591556		0.000
		2007	$	1.000000	$	1.044012		0.000
AllianceBernstein Growth and Income Portfolio – Class B		2010	$	0.693596	$	0.772719		0.000
Subaccount Inception Date May 1, 2001		2009	$	0.583523	$	0.693596		0.000
		2008	$	0.996279	$	0.583523		0.000
		2007	$	1.000000	$	0.996279		0.000
AllianceBernstein Large Cap Growth Portfolio – Class B		2010	$	0.874638	$	0.948778		0.000
Subaccount Inception Date May 1, 2001		2009	$	0.645899	$	0.874638		0.000
		2008	$	1.086768	$	0.645899		0.000
		2007	$	1.000000	$	1.086768		0.000
Fidelity VIP Contrafund ® Portfolio – Service Class 2		2010	$	0.838051	$	0.967811		343,173.154
Subaccount Inception Date May 1, 2000		2009	$	0.626367	$	0.838051		38,114.885
		2008	$	1.106693	$	0.626367		58,886.927
		2007	$	1.000000	$	1.106693		26,292.375
Fidelity VIP Equity-Income Portfolio – Service Class 2		2010	$	0.685479	$	0.778011		27,256.759
Subaccount Inception Date May 1, 2000		2009	$	0.534361	$	0.685479		19,540.326
		2008	$	0.946121	$	0.534361		0.000
		2007	$	1.000000	$	0.946121		0.000
Fidelity VIP Growth Portfolio – Service Class 2		2010	$	0.781239	$	0.955719		87,262.768
Subaccount Inception Date May 1, 2001		2009	$	0.618145	$	0.781239		188,675.400
		2008	$	1.187869	$	0.618145		78,699.092
		2007	$	1.000000	$	1.187869		0.000
Fidelity VIP Growth Opportunities Portfolio – Service Class 2		2010	$	0.714448	$	0.871262		140.226
Subaccount Inception Date May 1, 2000		2009	$	0.497297	$	0.714448		140.226
		2008	$	1.122406	$	0.497297		140.226
		2007	$	1.000000	$	1.122406		0.000
Fidelity VIP Mid Cap Portfolio – Service Class 2		2010	$	0.876053	$	1.112453		239,743.542
Subaccount Inception Date May 1, 2000		2009	$	0.634696	$	0.876053		130,784.396
		2008	$	1.064131	$	0.634696		95,843.655
		2007	$	1.000000	$	1.064131		0.000
Fidelity VIP Value Strategies Portfolio – Service Class 2		2010	$	0.694130	$	0.866127		154,721.505
Subaccount Inception Date May 1, 2002		2009	$	0.447216	$	0.694130		321,966.434
		2008	$	0.929567	$	0.447216		145,251.507
		2007	$	1.000000	$	0.929567		0.000
Franklin Income Securities Fund – Class 2		2010	$	0.903723	$	1.005682		11,327.376
Subaccount Inception Date May 1, 2007		2009	$	0.674813	$	0.903723		0.000
		2008	$	0.971353	$	0.674813		0.000
		2007	$	1.000000	$	0.971353		0.000

86

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year		1.25%
Subaccount			Beginning AUV		Ending AUV		# Units
Mutual Shares Securities Fund – Class 2		2010	$	0.746489	$	0.819803		138,451.656
Subaccount Inception Date May 1, 2007		2009	$	0.599635	$	0.746489		0.000
		2008	$	0.965403	$	0.599635		0.000
		2007	$	1.000000	$	0.9655403		0.000
Templeton Foreign Securities Fund – Class 2		2010	$	0.852876	$	0.913165		3,864.024
Subaccount Inception Date May 1, 2007		2009	$	0.630121	$	0.852876		3,868.450
		2008	$	1.070130	$	0.630121		3,873.326
		2007	$	1.000000	$	1.070130		0.000
Janus Aspen – Enterprise Portfolio – Service Shares		2010	$	0.864100	$	1.071240		5,092.875
Subaccount Inception Date October 9, 2000		2009	$	0.605702	$	0.864100		5,092.875
		2008	$	1.092409	$	0.605702		5,092.875
		2007	$	1.000000	$	1.092409		0.000
Janus Aspen - Perkins Mid Cap Value Portfolio – Service Shares		2010	$	0.923874	$	1.052671		1,885.477
Subaccount Inception Date October 9, 2000		2009	$	0.703750	$	0.923874		1,889.194
		2008	$	0.988260	$	0.703750		1,893.494
		2007	$	1.000000	$	0.988260		0.000
Janus Aspen – Worldwide Portfolio – Service Shares		2010	$	0.739380	$	0.843596		58,537.270
Subaccount Inception Date October 9, 2000		2009	$	0.544832	$	0.739380		67,651.539
		2008	$	0.999557	$	0.544832		0.000
		2007	$	1.000000	$	0.999557		0.000
MFS ® New Discovery Series – Service Class		2010	$	0.908059	$	1.219205		12,336.796
Subaccount Inception Date May 1, 2002		2009	$	0.564330	$	0.908059		22,342.919
		2008	$	0.944800	$	0.564330		1,662.215
		2007	$	1.000000	$	0.944800		0.000
MFS ® Total Return Series – Service Class		2010	$	0.876023	$	0.948559		53,895.854
Subaccount Inception Date May 1, 2002		2009	$	0.753440	$	0.876023		48,063.575
		2008	$	0.982111	$	0.753440		36,892.965
		2007	$	1.000000	$	0.982111		0.000
Transamerica BlackRock Tactical Allocation VP – Service Class		2010	$	1.003480	$	1.102517		55,764.524
Subaccount inception date May 1, 2009		2009	$	0.993371	$	1.003480		0.000
Transamerica Index 35 VP – Service Class		2010	$	0.998540	$	1.079160		0.000
Subaccount inception date November 19, 2009		2009	$	0.999966	$	0.998540		0.000
Transamerica Index 50 VP – Service Class		2010	$	0.996462	$	1.089393		0.000
Subaccount inception date May 1, 2008		2009	$	0.991650	$	0.996462		0.000
Transamerica Index 75 VP – Service Class		2010	$	0.999658	$	1.115713		0.000
Subaccount inception date May 1, 2008		2009	$	0.988780	$	0.999658		0.000
Transamerica Index 100 VP – Service Class		2010	$	1.024505	$	1.157637		0.000
Subaccount inception date November 19, 2009		2009	$	0.999966	$	1.024505		0.000
Transamerica JPMorgan Mid Cap Value VP – Service Class		2010	$	1.029949	$	1.249382		1,787.372
Subaccount inception date November 19, 2009		2009	$	0.985165	$	1.029949		0.000

⁽¹⁾  Formerly known as Transamerica Balanced VP.

⁽²⁾  Formerly known as Transamerica Money Market VP.

⁽³⁾  Formerly known as Transamerica U.S. Government Securities VP.

⁽⁴⁾  Formerly known as Transamerica Foxhall Global Hard Assets VP.

⁽⁵⁾  Formerly known as Transamerica Focus VP.

⁽⁶⁾  Formerly known as Transamerica Diversified Equity VP.

⁽⁷⁾  Formerly known as Transamerica Convertible Securities VP.

⁽⁸⁾  Formerly known as Transamerica Growth Opportunities VP.

⁽⁹⁾  Formerly known as Transamerica Small/Mid Cap Value VP.

87

CONDENSED FINANCIAL INFORMATION — (Continued)

Transamerica AEGON Active Asset Allocation - Conservative VP, Transamerica AEGON Active Asset Allocation - Moderate VP, Transamerica AEGON Active Asset Allocation - Moderate Growth VP, Transamerica JPMorgan Core Bond VP, Transamerica JPMorgan Tactical Allocation VP, and Transamerica PIMCO Real Return TIPS VP had not commenced operations as of December 31, 2010, therefore, comparable data is not available.

88

APPENDIX

OA METHOD TRANSFERS

To make the Retirement Income Choice 1.2 Benefit available, we monitor your policy value and guarantees under the rider daily and periodically transfer amounts between your selected investment options and the OA Subaccount. We determine the amount and timing of OA Method transfers between the investment options and the OA Subaccount according to a mathematical model.

The mathematical model is designed to calculate how much of your policy value should be allocated to the OA Subaccount. Based on this calculation, transfers into or out of the OA Subaccount will occur (subject to the previously disclosed thresholds). The formula is:

Percent of Policy Value required in OA Subaccount (or X) = e^{-Dividend*Time} *(1- NormDist(d1))

where:

e	=	Base of the Natural Logarithm
NormDist	=	Cumulative Standard Normal Distribution
d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

In order to calculate the percent of policy value required in the OA Subaccount, we must first calculate d1:

d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

where:

ln	=	Natural Logarithm Function
G	=	Guarantee Ratio
R	=	Rate
F	=	Fees
V	=	Volatility
T	=	Time

After calculating d1, the percent of policy value required in the OA Subaccount can be calculated. Once calculated, appropriate transfers into or out of the OA Subaccount will occur (subject to the thresholds).

Following is a brief discussion of the values used in the formula.

The POLICY VALUE includes the value in both the investment options and in the OA Subaccount.

The GUARANTEE RATIO is the policy value divided by the greater of (1) premiums minus any adjusted partial withdrawals or (2) present value of rider withdrawal amount (the present value of the rider amount looks at the sum of the expected lifetime payments discounted using a factor of [5.5]).

89

OA METHOD TRANSFERS — (Continued)

The RATE is the interest rate used for the OA Method. It is based on a long-term expectation based on historical interest rates and may vary over time.

The FEES is an approximation of average policy fees and charges associated with policies that have elected the RIC 1.2 rider. This value may change over time.

The VOLATILITY represents the volatility of the returns of policy value for all in force policies and is based on the long-term expectation of the degree to which the policy values tend to fluctuate. This value may vary over time.

The TIME is an approximation based on actuarial calculations of historical average number of years (including any fraction) which we anticipate remain until any potential payments are made under the benefit. This value may vary over time.

The PERCENT OF POLICY VALUE TO BE ALLOCATED TO THE OA SUBACCOUNT is computed for each policy. Ultimately the allocation for a policy takes into account the guarantees under the rider and the limit on allocations to the OA Subaccount.

The CUMULATIVE STANDARD NORMAL DISTRIBUTION function assumes that random events are distributed according to the classic bell curve. For a given value it computes the percentage of such events which can be expected to be less than that value.

The NATURAL LOGARITHM function for a given value, computes the power to which e must be raised, in order to result in that value. Here, e is the base of the natural logarithms, or approximately 2.718282.

Example:

Day 1: Policy Value Declines by 10%

For purposes of this example we will assume that the policy value declines by 10% to $90,000, the day after the rider issue date from the initial premium amount of $100,000 producing a guarantee ratio of 90% ($90,000/$100,000) invoking an OA transfer. We will also assume:

Guarantee Ratio	=	90%
Rate	=	4.5%
Volatility	=	10%
Fees	=	3%
Time	=	20
Percentage of policy value in fixed account	=	15%
Maximum percentage of policy value in OA Subaccount at time of transfer	=	20%

First we calculate d1.

d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1	=	[ln(.90)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]
d1	=	.658832

90

OA METHOD TRANSFERS — (Continued)

Using the value we just calculated for d1, we can now calculate the percent of policy value required in the OA Subaccount.

Percent of Policy Value desired in OA Subaccount (or DOA) = min(MAX2OA%, e^{-Dividend*Time} *(1-NormDist(d1)))

DOA	=	min(.20, (2.718282 ^ -.03 * 20) * (1 – NormDist(.658832)))
DOA	=	min(20%, 13.9948%)
DOA	=	13.9948%

This percentage gets adjusted if either there is money already in the OA Subaccount or if there is money in the fixed account. When the GR% crosses the lower threshold as in this situation, the ultimate OA transfer percentage is calculated as follows:

X	=	max (0, DOA - (OA% = FA% / 3)
X	=	max (0, 13.9948% - (0% = 15% / 3)
X	=	max (0, 13,9948% - 5%)
X	=	8.9948%

Therefore, 8.9948% of the policy value is transferred to the OA Subaccount, resulting in a total transfer of $8,095.32.

Day 2: Policy Value Recovers to 95% of Initial Value after the 10% Decline

For purposes of this example we will assume that after the policy value declined to $90,000, it recovered the next day to $95,000 producing a guarantee ratio of 95% ($95,000/$100,000) and invoking an OA transfer. We will also assume:

Guarantee Ratio	=	95%
Rate	=	4.5%
Volatility	=	10%
Fees	=	3%
Time	=	20
Percentage of policy value in fixed account	=	14%
Maximum percentage of policy value in OA Subaccount at time of transfer	=	20%
Percentage of policy value in OA Subaccount	=	8%

First we calculate d1.

d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1	=	[ln(.95)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]
d1	=	.779732

Using the value we just calculated for d1, we can now calculate the percent of policy value required in the OA Subaccount.

91

OA METHOD TRANSFERS — (Continued)

Percent of Policy Value desired in OA Subaccount (or DOA) = min(MAX2OA%, e^{-Dividend*Time} *(1 - NormDist(d1)))

DOA	=	min(.20, (2.718282 ^ -.03 * 20) * (1 – NormDist(.779732)))
DOA	=	min(20%, 11.9517%)
DOA	=	11.9517%

This percentage gets adjusted if either there is money already in the OA Subaccount or if there is money in the fixed account. When the GR% crosses the upper threshold as in this situation, the ultimate OA transfer percentage is calculated as follows:

X	=	min (OA%, max(0, OA% = FA% / 3 - DOA%))
X	=	min(8%, max(0, 8% + 14% / 3 - 11.9517%))
X	=	min(8%, max(0, 0.714967%))
X	=	0.714967%

Therefore, due to the policy value recovery, 0.714967% of the policy value will be transferred out of the OA Subaccount pro rata back into their current investment options, resulting in a total transfer of $679.22.

Day 3: Policy Value further recovers to 105% of Initial Value

For purposes of this example we will assume that after the policy value recovered to $95,000, it further recovered the next day to $105,000 producing a guarantee ratio of 105% ($105,000/$100,000) and invoking an OA transfer. We will also assume:

Guarantee Ratio	=	105%
Rate	=	4.5%
Volatility	=	10%
Fees	=	3%
Time	=	20
Percentage of policy value in fixed account	=	13%
Maximum percentage of policy value in OA Subaccount at time of transfer	=	20%
Percentage of policy value in OA Subaccount	=	6%

First we calculate d1.

d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1	=	[ln(1.05)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]
d1	=	1.003524

Using the value we just calculated for d1, we can now calculate the percent of policy value required in the OA Subaccount.

Percent of Policy Value desired in OA Subaccount (or DOA) = min(MAX2OA%, e^{-Dividend*Time} *(1 - NormDist(d1)))

92

OA METHOD TRANSFERS — (Continued)

DOA	=	min(.20, (2.718282 ^ -.03 * 20) * (1 – NormDist(1.003524)))
DOA	=	min(20%, 8.6605%)
DOA	=	8.6605%

This percentage gets adjusted if either there is money already in the OA Subaccount or if there is money in the fixed account. When the GR% crosses the upper threshold as in this situation, the ultimate OA transfer percentage is calculated as follows:

X	=	min (OA%, max(0, OA% = FA% / 3 - DOA%))
X	=	min(6%, max(0, 6% + 13% / 3 - 8.6605%))
X	=	min(6%, max(0, 1.67283%))
X	=	1.67283%>

While the mathematical model would suggest we transfer only a portion of the policy value in the OA Subaccount into your investment options (leaving 4.32717% (6% - 1.67283%) in the OA Subaccount), all of the policy value in the OA Subaccount will be transferred into your investment options. If the Guarantee Ratio equals or exceeds 100%, then your policy value is greater than or equal to the value of the guarantee and there is no current need for any policy value to be allocated to the OA Subaccount.

93

APPENDIX

PAM METHOD TRANSFERS

To make the Living Benefits Rider available, we monitor your policy value and guarantees under the rider daily and periodically transfer amounts between your selected investment options and the PAM Subaccount. We determine the amount and timing of PAM Method transfers between the investment options and the PAM Subaccount according to a mathematical model.

The mathematical model is designed to calculate how much of your policy value should be allocated to the PAM Subaccount. Based on this calculation, transfers into or out of the PAM Subaccount will occur. The formula is:

Percent of Policy Value required in PAM Subaccount (or X) =

e^{-Dividend*Time} *(1- NormDist(d1))

where:

e	=	Base of the Natural Logarithm
NormDist	=	Cumulative Standard Normal Distribution
d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

In order to calculate the percent of policy value required in the PAM Subaccount, we must first calculate d1:

d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

where:

ln	=	Natural Logarithm Function
	=	Guarantee Ratio
R	=	Rate
F	=	Fees
V	=	Volatility
T	=	Time

After calculating d1, the percent of policy value required in the PAM Subaccount can be calculated. Once calculated, appropriate transfers into or out of the PAM Subaccount will occur.

Following is a brief discussion of the values used in the formula.

The POLICY VALUE includes the value in both the investment options and in the PAM Subaccount.

The GUARANTEE RATIO is the policy value divided by 7% “Principal Back” Minimum Remaining Withdrawal Amount.

94

PAM METHOD TRANSFERS — (Continued)

The RATE is the interest rate used for the PAM Method. It is based on a long-term expectation based on historical interest rates and may vary over time.

The FEES is an approximation of average policy fees and charges associated with policies that have elected the Living Benefits Rider. This value may change over time.

The VOLATILITY represents the volatility of the returns of policy value for all in force policies and is based on the long-term expectation of the degree to which the policy values tend to fluctuate. This value may vary over time.

The TIME is an approximation based on actuarial calculations of historical average number of years (including any fraction) which we anticipate remain until any potential payments are made under the benefit. This value may vary over time.

The PERCENT OF POLICY VALUE TO BE ALLOCATED TO THE PAM SUBACCOUNT is computed for each policy. Ultimately the allocation for a policy takes into account the guarantees under the rider and the limit on allocations to the PAM Subaccount.

The CUMULATIVE STANDARD NORMAL DISTRIBUTION function assumes that random events are distributed according to the classic bell curve. For a given value it computes the percentage of such events which can be expected to be less than that value.

The NATURAL LOGARITHM function for a given value, computes the power to which e must be raised, in order to result in that value. Here, e is the base of the natural logarithms, or approximately 2.718282.

Example:

Day 1: Policy Value Declines by 10%

For purposes of this example we will assume that the policy value declines by 10% to $90,000 the day after the rider issue date from the initial premium amount of $100,000 producing a guarantee ratio of 90% ($90,000/$100,000). We will also assume:

Guarantee Ratio	=	90%
Rate	=	4.5%
Volatility	=	10%
Fees	=	3%
Time	=	20

First we calculate d1.

d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1	=	[ln(.90)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]
d1	=	.658832

95

PAM METHOD TRANSFERS — (Continued)

Using the value we just calculated for d1 we can now calculate the percent of policy value required in the PAM Subaccount.

Percent of Policy Value in PAM Subaccount (or X) = e^{-Dividend*Time} *(1-NormDist(d1))

X	=	(2.718282 ^ -.03 * 20) * (1 – NormDist(.658832))
X	=	13.9948%

Therefore, 13.9948% of the policy value is transferred to the PAM Subaccount, resulting in a total transfer of $12,595.32.

Day 2: Policy Value Recovers to 105% of Initial Value after the 10% Decline

For purposes of this example we will assume that after the policy value declined to $90,000 it recovered the next day to $105,000 producing a guarantee ratio of 105% ($105,000/$100,000). We will also assume:

Guarantee Ratio	=	105%
Rate	=	4.5%
Volatility	=	10%
Fees	=	3%
Time	=	20

First we calculate d1.

d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1	=	[ln(1.05)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]
d1	=	1.003524

Using the value we just calculated for d1 we can now calculate the percent of policy value required in the PAM Subaccount.

Percent of Policy Value in PAM Subaccount (or X) = e^{-Dividend*Time} *(1-NormDist(d1))

X= (2.718282 ^ -.03 * 20) * (1 – NormDist(1.003524))

X = 8.6605%

While the mathematical model would suggest we transfer only a portion of the policy value in the PAM Subaccount into your investment options (leaving 8.6605% in the PAM Subaccount), all of the policy value in the PAM Subaccount will be transferred into your investment options. If the Guarantee Ratio equals or exceeds 100%, then your policy value is greater than or equal to the value of the guarantee and there is no current need for any policy value to be allocated to the PAM Subaccount.

96

MEMBERS^® FREEDOM^SM VARIABLE ANNUITY

Issued Through

SEPARATE ACCOUNT VA B

By

TRANSAMERICA LIFE INSURANCE COMPANY

Prospectus

May 1, 2011

This flexible premium deferred annuity policy has many investment choices. There is a separate account that currently provides a means of investing in various underlying fund portfolios. There is also a fixed account, which offers interest at rates that are guaranteed by Transamerica Life Insurance Company. You can choose any combination of these investment choices. You bear the entire investment risk for all amounts you put in the separate account.

This prospectus and the underlying fund prospectuses give you important information about the policies and the underlying fund portfolios. Please read them carefully before you invest and keep them for future reference.

If you would like more information about the MEMBERS^® Freedom^SM Variable Annuity , you can obtain a free copy of the Statement of Additional Information (SAI) dated May 1, 2011. Please call us at (800) 525-6205 or write us at: Transamerica Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001. A registration statement, including the SAI, has been filed with the Securities and Exchange Commission (SEC) and the SAI is incorporated herein by reference. More information about the variable annuity can be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. You may obtain information about the operation of the public reference room by calling the SEC at 1-800-732-0330. The SEC also maintains a web site (http://www.sec.gov) that contains the prospectus, the SAI, material incorporated by reference, and other information. The table of contents of the SAI is included at the end of this prospectus.

Please note that the policies and the separate account investment choices:

• are not bank deposits

• are not federally insured

• are not endorsed by any bank or government agency

• are not guaranteed to achieve their goal

• are subject to risks, including loss of premium

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 ASSOCIATED WITH THE SUBACCOUNTS

ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

Managed by AllianceBernstein L.P.

AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

AMERICAN FUNDS INSURANCE SERIES^® TRUST

Managed by Capital Research and Management Company^SM

American Funds - Asset Allocation Fund – Class 2

American Funds - Bond Fund – Class 2

American Funds - Growth Fund – Class 2

American Funds - Growth-Income Fund – Class 2

FIDELITY^® VARIABLE INSURANCE PRODUCTS FUND

Managed by Fidelity Management & Research Company

Fidelity VIP Balanced Portfolio – Service Class 2

FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

Managed by Franklin Advisers, Inc.

Franklin Income Securities Fund – Class 2

GE INVESTMENTS FUNDS, INC.

Managed by GE Asset Management, Inc.

GE Investments Total Return Fund – Class 3

TRANSAMERICA SERIES TRUST

Subadvised by AEGON USA Investment Management, LLC

Transamerica AEGON High Yield Bond VP – Service Class

Transamerica AEGON Money Market VP – Service Class

Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica Index 35 VP – Service Class

Transamerica Index 50 VP – Service Class

Transamerica Index 75 VP – Service Class

Transamerica Index 100 VP – Service Class

Subadvised by Alliance Bernstein L.P.

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

Subadvised by BlackRock Financial Management, Inc.

Transamerica BlackRock Tactical Allocation VP – Service Class

Subadvised by BlackRock Investment Management, LLC

Transamerica BlackRock Large Cap Value VP – Service Class

Subadvised by Foxhall Capital Management, Inc.

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica Foxhall Global Commodities & Hard Assets VP – Service Class

Subadvised by ING Clarion Real Estate Securities, LLC

Transamerica Clarion Global Real Estate Securities VP – Service Class

Subadvised by MFS^® Investment Management

Transamerica MFS International Equity VP – Service Class

Subadvised by MEMBERS^® Asset Management

Transamerica Madison Balanced Allocation VP – Service Class

Transamerica Madison Conservative Allocation VP – Service Class

Transamerica Madison Diversified Income VP – Service Class

Transamerica Madison Large Cap Growth VP – Service Class

Transamerica Madison Moderate Growth Allocation VP – Service Class

Subadvised by Morgan Stanley Investment Management Inc.

Transamerica Morgan Stanley Active International Allocation VP – Service Class

Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class

Subadvised by Pacific Investment Management Company LLC

Transamerica PIMCO Real Return TIPS VP – Service Class

Transamerica PIMCO Total Return VP – Service Class

Subadvised by T. Rowe Price Associates, Inc.

Transamerica T. Rowe Price Small Cap VP – Service Class

Advised by Transamerica Asset Management, Inc.

Transamerica BlackRock Global Allocation VP – Service Class

2

TABLE OF CONTENTS

GLOSSARY OF TERMS		6
SUMMARY		8
ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES		14
1.	THE ANNUITY POLICY	19
2.	PURCHASE	19
	Policy Issue Requirements	19
	Premium Payments	20
	Initial Premium Requirements	20
	Additional Premium Payments	20
	Maximum Total Premium Payments	20
	Allocation of Premium Payments	21
	Policy Value	21
3.	INVESTMENT CHOICES	21
	The Separate Account	21
	Selection of Underlying Portfolios	23
	Addition, Deletion, or Substitution of Investments	24
	Static Allocation Models	25
	The Fixed Account	25
	Transfers	26
	Market Timing and Disruptive Trading	26
4.	PERFORMANCE	30
5.	EXPENSES	30
	Excess Interest Adjustment	30
	Mortality and Expense Risk Fees	30
	Premium Taxes	31
	Federal, State and Local Taxes	31
	Special Service Fees	31
	Transfer Fee	31
	Administrative Charges	31
	Initial Payment Guarantee	31
	Fund Facilitation Fee	31
	Additional Death Distribution	32
	Additional Death Distribution+	32
	Living Benefits Rider	32
	Retirement Income Choice® 1.2 Rider and Additional Options Fees	33
	Retirement Income Choice® 1.4 Rider and Additional Options Fees - This Rider is No Longer Available for New Sales	33
	Income Link® Rider Fee	33
	Retirement Income MaxSM Rider Fees	34
	Portfolio Fees and Expenses	34
	Revenue We Receive	34
6.	ACCESS TO YOUR MONEY	36
	Surrenders	36
	Delay of Payment and Transfers	37
	Excess Interest Adjustment	37
	Signature Guarantee	38
7.	ANNUITY PAYMENTS (THE INCOME PHASE)	38
	Annuity Payment Options	39
8.	DEATH BENEFIT	41
	When We Pay A Death Benefit	42
	When We Do Not Pay A Death Benefit	42
	Deaths After the Annuity Commencement Date	42
	Succession of Ownership	42
	Amount of Death Benefit	42
	Guaranteed Minimum Death Benefit	43
	Adjusted Partial Surrender	43
9.	TAXES	44
	Annuity Policies in General	44
	Qualified and Nonqualified Policies	44
	Surrenders-Qualified Policies Generally	45
	Surrenders-403(b) Policies	46
	Surrenders-Nonqualified Policies	46
	Taxation of Death Benefit Proceeds	47
	Annuity Payments	47
	Partial Annuitization	48
	Medicare Tax	48
	Diversification and Distribution Requirements	48
	Federal Defense of Marriage Act	48
	Federal Estate Taxes	48
	Generation-Skipping Transfer Tax	49
	Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010	49
	Annuity Purchases by Residents of Puerto Rico	49

3

TABLE OF CONTENTS continued

	Annuity Policies Purchased by Nonresident Aliens and Foreign Corporations	49
	Transfers, Assignments or Exchanges of Policies	49
	Possible Tax Law Changes	50
	Separate Account Charges	50
	Foreign Tax Credits	50
	Guaranteed Lifetime Withdrawal Benefits	50
10.	ADDITIONAL FEATURES	50
	Systematic Payout Option	50
	Income Benefit Programs	51
	Initial Payment Guarantee	51
	Additional Death Distribution	52
	Additional Death Distribution+	53
	Nursing Care and Terminal Condition Withdrawal Option	54
	Unemployment Waiver	55
	Telephone Transactions	55
	Dollar Cost Averaging Program	55
	Asset Rebalancing	57
	Guaranteed Lifetime Withdrawal Benefits	57
	Living Benefits Rider	57
	Retirement Income Choice® 1.2 Rider	65
	Retirement Income Choice® 1.4 Rider - This Rider is No Longer Available for New Sales	77
	Income LinkSM Rider	86
	Retirement Income MaxSM Rider	93
11.	OTHER INFORMATION	100
	Ownership	100
	Beneficiary	100
	Right to Cancel Period	100
	Assignment	100
	Sending Forms and Transaction Requests in Good Order	100
	Mixed and Shared Funding	101
	Exchanges and Reinstatements	101
	Voting Rights	101
	Legal Proceedings	102
	Transamerica Life Insurance Company	102
	Financial Condition of the Company	102
	The Separate Account	103
	Distribution of the Policies	103
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION		106
APPENDIX
	CONDENSED FINANCIAL INFORMATION	107
APPENDIX
	POLICY VARIATIONS	112
APPENDIX
	EXCESS INTEREST ADJUSTMENT EXAMPLES	119
APPENDIX
	DEATH BENEFIT	123
APPENDIX
	ADDITIONAL DEATH DISTRIBUTION RIDER - ADDITIONAL INFORMATION	126
APPENDIX
	ADDITIONAL DEATH DISTRIBUTION+ RIDER - ADDITIONAL INFORMATION	127
APPENDIX
	GUARANTEED LIFETIME WITHDRAWAL BENEFIT COMPARISON TABLE	128
APPENDIX
	LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS	132
APPENDIX
	GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS - RETIREMENT INCOME CHOICE® 1.2 RIDER AND RETIREMENT INCOME CHOICE® 1.4 RIDER (RETIREMENT INCOME CHOICE® 1.4 - NO LONGER AVAILABLE FOR NEW SALES)	139

4

TABLE OF CONTENTS continued

APPENDIX
	GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS - INCOME LINK® RIDER	145
APPENDIX
	GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS - RETIREMENT INCOME MAXSM RIDER	147
APPENDIX
	HYPOTHETICAL EXAMPLE OF THE WITHDRAWAL BASE CALCULATION - RETIREMENT INCOME MAXSM RIDER	150

5

GLOSSARY OF TERMS

Accumulation Unit — An accounting unit of measure used in calculating the policy value in the separate account before the annuity commencement date.

Adjusted Policy Value — The policy value increased or decreased by any excess interest adjustment.

Administrative and Service Office — Transamerica Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001, (800) 525-6205.

Annuitant — The person on whose life any annuity payments involving life contingencies will be based.

Annuitize (Annuitization) — When you switch from the accumulation phase to the income phase and we begin to make annuity payments to you (or your designee).

Annuity Commencement Date — The date upon which annuity payments are to commence. This date may be any date after the policy date and may not be later than the last day of the policy month following the month after the annuitant attains age 95. The earliest annuity commencement date is at least thirty days after you purchase your policy. The annuity commencement date may have to be earlier for qualified policies and may be earlier if required by state law.

Annuity Payment Option — A method of receiving a stream of annuity payments selected by the owner.

Assumed Investment Return or AIR — The annual effective rate shown in the contract specifications section of the contract that is used in the calculation of each variable annuity payment.

Cash Value — The adjusted policy value less any rider fees (imposed upon surrender).

Excess Interest Adjustment — A positive or negative adjustment to amounts surrendered (both partial or full surrenders and transfers) or applied to annuity payment options from the fixed account guaranteed period options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by the Company since the date any payment was received by, or an amount was transferred to, the guaranteed period option. The excess interest adjustment can either decrease or increase the amount to be received by the owner upon full surrender or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively.

Fixed Account — One or more investment choices under the policy that are part of the Company’s general assets and are not in the separate account.

Free Amount — The amount that can be withdrawn each year without incurring any excess interest adjustment.

Guaranteed Lifetime Withdrawal Benefit — Any optional benefit under the policy that provides a guaranteed minimum withdrawal benefit, including the Living Benefits Rider, the Retirement Income Choice^® 1.2 Rider, the Income Link^® Rider or the Retirement Income Max^SM Rider.

Guaranteed Period Options — The various guaranteed interest rate periods of the fixed account which the Company may offer and into which premium payments may be paid or amounts transferred.

Owner (You, Your) — The person who may exercise all rights and privileges under the policy. The owner during the lifetime of the annuitant and before the annuity commencement date is the person designated as the owner in the information that we require to issue a policy.

Policy Date — The date shown on the policy data page attached to the policy and the date on which the policy becomes effective.

Policy Value — On or before the annuity commencement date, the policy value is equal to the owner’s:

• premium payments; minus

• gross partial surrenders (partial surrenders minus excess interest adjustments); plus

• interest credited in the fixed account; plus

• accumulated gains in the separate account; minus

• accumulated losses in the separate account; minus

• service charges, rider fees, premium taxes, transfer fees, and other charges, if any.

Policy Year — A policy year begins on the policy date and on each anniversary thereof.

6

Separate Account — Separate Account VA B, a separate account established and registered as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”), to which premium payments under the policies may be allocated.

Separate Account Value — The portion of the policy value that is invested in the separate account.

Subaccount — A subdivision within the separate account, the assets of which are invested in a specified underlying fund portfolio.

Valuation Period — The period of time from one determination of accumulation unit values and annuity unit values to the next subsequent determination of those values. Such determination shall be made on each business day.

Written Notice — Written notice, signed by the owner, that gives the Company the information it requires and is received in good order at the Administrative and Service Office. For some transactions, the Company may accept an electronic notice such as telephone instructions. Such electronic notice must meet the requirements for good order that the Company establishes for such notices.

You (Your) — the owner of the policy.

7

SUMMARY

The sections in this summary correspond to sections in this prospectus, which discuss the topics in more detail.

1. THE ANNUITY POLICY

The flexible premium deferred variable annuity policy offered by Transamerica Life Insurance Company (the Company, we, us, or our) provides a way for you to invest on a tax-deferred basis in the following investment choices: various subaccounts of the separate account and the fixed account of the Company. The policy is intended to accumulate money for retirement or other long-term investment purposes.

This policy currently offers subaccounts that are listed under “Investment Choices” in this prospectus. Each subaccount invests exclusively in shares of one of the underlying fund portfolios. The policy value may depend on the investment experience of the selected subaccounts. Therefore, you bear the entire investment risk with respect to all policy value in any subaccount. You could lose the amount that you invest.

The fixed account offers an interest rate that the Company guarantees.

The policy, like all deferred annuity policies, has two phases: the “accumulation phase” and the “income phase.” During the accumulation phase, earnings accumulate on a tax-deferred basis and are taxed as ordinary income when you take them out of the policy. The income phase occurs when you annuitize and begin receiving regular annuity payments from your policy. The money you can accumulate during the accumulation phase will largely determine the payments you receive during the income phase.

2. PURCHASE

The initial premium payment for nonqualified policies must be at least $15,000 or more, and at least $1,000 for qualified policies, under most circumstances. You must obtain prior Company approval to purchase a policy with an amount less than the stated minimum. You can generally add as little as $50 at any time during the accumulation phase.

3. INVESTMENT CHOICES

You can allocate your premium payments to one of several underlying fund portfolios listed under Investment Choices in this prospectus and described in the underlying fund prospectuses. Depending upon their investment performance, you can make or lose money in any of the subaccounts.

You can also allocate your premium payments to the fixed account.

We currently allow you to transfer money between any of the investment choices during the accumulation phase. We reserve the right to impose a $10 fee for each transfer in excess of 12 transfers per policy year and to impose restrictions and limitations on transfers.

8

4. PERFORMANCE

The value of the policy will vary up or down depending upon the investment performance of the subaccounts you choose.

5. EXPENSES

Note: The following section on expenses and the Annuity Policy Fee Table and expense examples only apply to policies issued after the date of this prospectus. See “Appendix - Policy Variations” for information about older policies.

No deductions are made from premium payments at the time you buy the policy so that the full amount of each premium payment is invested in one or more of your investment choices. If you select the Life with Emergency Cash^® annuity payment option, then you can surrender your policy after annuity payments have begun. A surrender charge of up to 4% of policy value will apply during the first four years after the annuity commencement date.

Full surrenders, partial surrenders, and transfers from a guaranteed period option of the fixed account may also be subject to an excess interest adjustment, which may increase or decrease the amount you receive. This adjustment may also apply to amounts applied to an annuity payment option from a guaranteed period option of the fixed account prior to the end of the guaranteed period option.

We deduct daily mortality and expense risk fees and administrative charges from the assets in each subaccount during the accumulation phase, at an annual rate (as a percentage of the subaccount’s value) that depend on the death benefit option that you select, as follows:

• 1.70% if you choose the Return of Premium Death Benefit

• 1.90% if you choose the Annual Step-Up Death Benefit

During the accumulation phase, we deduct an annual service charge of no more than $35 from the policy value on each policy anniversary and at the time of surrender. The charge is waived if either the policy value or the sum of all premium payments, minus all partial surrenders, is at least $50,000.

Upon full surrender, payment of a death benefit, or when annuity payments begin, we will deduct state premium taxes, if applicable. State premium taxes currently range from 0% to 3.50%, depending on the state.

If you elect the Initial Payment Guarantee feature when you annuitize, then there is a daily fee (during the income phase) currently equal to an annual rate of 1.25% of the daily net asset value in the subaccounts.

We deduct a daily fund facilitation fee from the assets in certain investment choices at an annual rate (as a percentage of the subaccount’s value) as follows:

• 0.30% if you choose the American Funds - Asset Allocation Fund – Class 2

• 0. 30% if you choose the American Funds - Bond Fund – Class 2

• 0.30% if you choose the American Funds - Growth Fund – Class 2

• 0.30% if you choose the American Funds - Growth-Income Fund – Class 2

• 0.20% if you choose the AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

• 0.20% if you choose the GE Investments Total Return Fund – Class 3

9

• 0.10% if you choose the Transamerica BlackRock Global Allocation VP – Service Class

If you elect the Additional Death Distribution (“ADD”), then there is an annual rider fee during the accumulation phase of 0.25% of the policy value.

If you elect the Additional Death Distribution+ (“ADD+”), then there is an annual rider fee during the accumulation phase of 0.55% of the policy value.

If you elect the Living Benefits Rider, then there is an annual rider fee during the accumulation phase of 0.90% of the “principal back” total withdrawal base on each anniversary (“rider anniversary”) of the date the rider was elected.

If you elect the Retirement Income Choice^® 1.2 Rider, there is an annual rider fee during the accumulation phase of 1.20% (of the withdrawal base charged quarterly) if you elect the Open Allocation option, and 0.45% to 1.40% if you elect the Designated Allocation option depending on what designated investment options you choose. For each additional option you elect with the rider, you will be charged a quarterly fee during the accumulation phase that is also a percentage of the withdrawal base; this fee is in addition to the rider fee for the base benefit.

If you elect the Income Link^® Rider, there is a rider fee during the accumulation phase of 0.90% (on an annual basis) of the withdrawal base charged quarterly.

If you elect the Retirement Income Max^SM Rider, there is a quarterly rider fee during the accumulation phase of 1.00% annually.

The value of the net assets of the subaccounts will reflect the management fee and other expenses incurred by the underlying fund portfolios.

6. ACCESS TO YOUR MONEY

You can generally take out $500 or more anytime during the accumulation phase (except under certain qualified policies).

You may have to pay income tax and a tax penalty on any money you take out.

If you have policy value in the fixed account, you may take out any cumulative interest credited free of excess interest adjustments.

Access to amounts held in qualified policies may be restricted or prohibited by law or regulation or the terms of the policy.

Surrenders are not generally permitted during the income phase unless you elect the Life with Emergency Cash^® annuity payment option.

Partial surrenders will reduce your policy value. Depending on its amount and timing, a partial surrender may considerably reduce or eliminate some of the benefits and guarantees provided by your Contract. You should carefully consider whether a partial surrender under a particular circumstance will have a negative impact to your benefits or guarantees. The impact of partial and full surrenders (generally) on your benefits and guarantees is discussed in the corresponding sections of the prospectus describing such benefits and guarantees.

7. ANNUITY PAYMENTS (THE INCOME PHASE)

The policy allows you to receive income under one of several annuity payment options. You may choose from fixed payment options, variable payment options, or a combination of both. If you select a variable payment option, then the dollar amount of your annuity payments may go up or down.

10

However, the Initial Payment Guarantee is available for an extra fee and it guarantees a minimum amount for each variable annuity payment.

8. DEATH BENEFIT

If the sole annuitant dies before the income phase begins, then the beneficiary will generally receive a death benefit. If the owner is not the annuitant, then no death benefit is paid if the owner dies; however required distribution rules require that the policy value be distributed upon the death of any owner.

Naming different persons as owner and annuitant can affect to whom and whether amounts will be paid. Use care when naming owners, annuitants and beneficiaries, and consult your agent if you have questions.

When you purchase a policy you may generally choose an optional guaranteed minimum death benefit:

• Annual Step-Up Death Benefit

Charges are lower if you do not choose an optional guaranteed minimum death benefit.

After the policy is issued, a guaranteed minimum death benefit cannot be added, and the death benefit cannot be changed.

9. TAXES

Earnings, if any, are generally not taxed until taken out. If you take money out of a nonqualified policy during the accumulation phase, earnings come out first for federal tax purposes, and are taxed as ordinary income. For nonqualified and certain qualified policies, payments during the income phase may be considered partly a return of your original investment so that part of each payment may not be taxable as income. For qualified policies, payments during the income phase are, in many cases, considered as all taxable income. If you are younger than 59 ¹/2 when you take money out, you may incur a 10% federal penalty tax on the taxable earnings.

10. ADDITIONAL FEATURES

This policy has additional features that might interest you. These features may not be available for all policies, may vary for certain policies, may not each be available in combination with other optional benefits under the policy, and may not be suitable for your particular situation.

These features include, but are not limited to, the following:

• You can arrange to have money automatically sent to you monthly, quarterly, semi-annually or annually while your policy is in the accumulation phase. This feature is referred to as the “Systematic Payout Option” (“SPO”). Amounts you receive may be included in your gross income, and in certain circumstances, may be subject to penalty taxes.

• You can elect an optional feature at the time of annuitization that guarantees your variable annuity payments will never be less than a percentage of the initial variable annuity payment. This feature is called the “Initial Payment Guarantee” (“IPG”). There is an extra charge for this feature.

• You may elect one of two optional riders that might pay an additional amount on top of the policy death benefit, in certain circumstances. These features are called the “Additional Death Distribution” (“ADD”) and “Additional Death Distribution+” (“ADD+”). There is an extra charge for these riders.

• Under certain medically related circumstances, you may surrender all or part of the policy value

11

without any excess interest adjustment. This feature is called the “Nursing Care and Terminal Condition Withdrawal Option.”

• Under certain unemployment circumstances, you may surrender all or a portion of the policy value free of any excess interest adjustment. This feature is called the “Unemployment Waiver.”

• You may generally make transfers and/or change the allocation of additional premium payments by telephone. We may restrict or eliminate this feature.

• You can arrange to automatically transfer money (at least $500 per transfer) monthly or quarterly from certain investment choices into one or more subaccounts. This feature is known as “Dollar Cost Averaging.”

• We will, upon your request, automatically transfer amounts among the subaccounts on a regular basis to maintain a desired allocation of the policy value among the various subaccounts. This feature is called “Asset Rebalancing.”

• You may elect to purchase an optional rider which provides you with a guaranteed minimum accumulation benefit and a guaranteed lifetime withdrawal benefit. This feature is called the “Living Benefits Rider.” If you elect this rider, we will monitor your policy value and, as we deem necessary to support the guarantees under the rider, may transfer amounts back and forth between investment choices that we designate and the variable investment choices that you have selected. You may lose the benefit of this rider if you take “excess” withdrawals. There is an extra charge for this rider.

• You may elect to purchase an optional rider which provides you with a guaranteed lifetime withdrawal benefit. This feature is called the “Retirement Income Choice^® 1.2 Rider.” If you elect the Retirement Income Choice^® 1.2 Rider, you must allocate 100% of your policy value according to either the Designated Allocation option or the Open Allocation option and meet other conditions. (See “Retirement Income Choice^® 1.2 - Allocation Options and Restrictions”.) You may lose the benefit of this rider if you take “excess” withdrawals. There is an extra charge for this rider.

• You may elect to purchase an optional rider which provides you with a guaranteed lifetime withdrawal benefit that uses a higher withdrawal percentage for a defined period of time and then resets to a lower percentage. This feature is called the “Income Link^® Rider.” If you elect the Income Link^® Rider, you must allocate 100% of your policy value to one or more “designated investment option(s).” (See “Income Link^® Rider - Designated Investment Options”.) You may lose the benefit of this rider if you take non-Income Link^® rider systematic withdrawals. There is an extra charge for this rider.

• You may elect to purchase an optional rider which provides you with a guaranteed lifetime withdrawal benefit. This feature is called the “Retirement Income Max^SM Rider.” If you elect the Retirement Income Max^SM Rider, you must allocate 100% of your policy value to one or more “designated investment option(s).” (See “Retirement Income Max^SM - Designated Investment Options”.) The designated investment options differ from the designated investment options for the other guaranteed lifetime withdrawal benefits. You may lose the benefit of this rider if you take “excess” withdrawals. There is an extra charge for this rider.

11. OTHER INFORMATION

Right to Cancel Period. You may return your policy for a refund, but only if you return it within a prescribed period, which is generally 10 days (after you receive the policy), or whatever longer time may be required by state law. The amount of the refund will generally be the premiums paid plus or minus accumulated gains or losses in the separate account; if state law requires, we will refund your original premium payment(s). The policy will then be deemed void.

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No Probate. Usually, the person receiving the death benefit under this policy will not have to go through probate. State laws vary on how the amount that may be paid is treated for estate tax purposes.

Who should purchase the Policy? This policy is designed for people seeking long-term tax-deferred accumulation of assets, generally for retirement or other long-term purposes; and for persons who have maximized their use of other retirement savings methods, such as 401(k) plans. The tax-deferred feature is most attractive to people in high federal and state tax brackets. The tax deferral features of variable annuities are unnecessary when purchased to fund a qualified plan. You should not buy this policy if you are looking for a short-term investment, market timing, or if you cannot take the risk of losing money that you put in.

There are various fees and charges associated with variable annuities. You should consider whether the features and benefits of this policy, unique to variable annuities, such as the opportunity for lifetime income payments, a guaranteed death benefit, the guaranteed level of certain charges, and additional features, make this policy appropriate for your needs.

State Variations. Policies issued in your state may provide different features and benefits from, and impose different costs than, those described in this prospectus because of state law variations. These differences include, among other things, free look rights, issue age limitations, and the general availability of riders. This prospectus describes the material rights and obligations of a policy owner, and the maximum fees and charges for all policy features and benefits are set forth in the fee table of this prospectus. See your policy for specific variations because any such state variations will be included in your policy or in riders or endorsements attached to your policy. See your agent or contact us for specific information that is applicable to your state.

Old Policies. This prospectus generally describes policies issued after the date of this prospectus. See “Appendix - Policy Variations” for information on how older policies have different features and requirements, and sometimes different fees and deductions.

Financial Statements. Financial Statements for the Company and the subaccounts are in the SAI. Condensed financial information for the subaccounts (those in operation by year end December 31, 2010, if any) are in “Appendix – Condensed Financial Information” to this prospectus.

12. INQUIRIES

If you need more information or want to make a transaction, please contact us at:

Transamerica Life Insurance Company

Administrative and Service Office

Attention: Customer Care Group

4333 Edgewood Road NE

Cedar Rapids, IA 52499-0001

(800) 525-6205

You may check your policy at www.transamericaannuities.com. Follow the logon procedures. You will need your pre-assigned Personal Identification Number (“PIN”) to access information about your policy. We cannot guarantee that you will be able to access this site.

You should protect your PIN, because on-line (or telephone) options may be available and could be made by anyone who knows your PIN. We may not be able to verify that the person providing instructions using your PIN is you or someone authorized by you.

13

ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES

The following describes the fees and expenses that you will pay when buying, owning, and surrendering the policy. Please be certain to review the notes following the fee table and expense examples for further information about the fees and charges presented. The order of the notes follows the order in which the fees and charges under the policy are presented in the fee tables and the expense examples.

The first section describes the fees and expenses that you will pay at the time that you buy the policy, surrender the policy, or transfer cash value between investment choices. State premium taxes may also be deducted. Excess interest adjustments may be made to amounts surrendered or applied to annuity payment options from cash value from the fixed account. (All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)

Policy Owner Transaction Expenses:

Sales Load On Purchase Payments		0	%
Maximum Surrender Charge (as a % of premium payments surrendered) Base Policy		0	%
Transfer Fee	$	0 - $10
Special Service Fee	$	0 - $25

The next section describes the fees and expenses that you will pay periodically during the time that you own the policy, not including portfolio fees and expenses. (All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)

Annual Service Charge	$	0 - $35 per policy
Separate Account Annual Expenses (as a percentage, annually, of average separate account value):
Base Separate Account Expenses:
Mortality and Expense Risk Fee		1.55	%
Administrative Charge		0.15	%
Total Base Separate Account Annual Expenses		1.70	%
Optional Separate Account Expenses:
Annual Step-Up Death Benefit		0.20	%
Fund Facilitation Fee		0.30	%
Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses		2.20	%

Optional Rider Fees:

Additional Death Distribution (annual charge based on policy value)	0.25	%
Additional Death Distribution+ (annual charge based on policy value)	0.55	%
Living Benefits Rider (annual charge, a % of Total Withdrawal Base)	0.90	%
Retirement Income Choice® 1.2 Rider (annual charge, a % of withdrawal base):
Base Benefit Open Allocation Option (Maximum)	1.95	%
Base Benefit Open Allocation Option (Current)	1.20	%
Base Benefit Designated Allocation Group A (Maximum)	2.15	%
Base Benefit Designated Allocation Group A (Current)	1.40	%

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Base Benefit Designated Allocation Group B (Maximum)	1.75	%
Base Benefit Designated Allocation Group B (Current)	1.00	%
Base Benefit Designated Allocation Group C (Maximum)	1.20	%
Base Benefit Designated Allocation Group C (Current)	0.45	%
Additional Benefits available with the Retirement Income Choice® 1.2 Rider:
Death Benefit (Single Life Option)	0.25	%
Death Benefit (Joint Life Option)	0.20	%
Income Enhancement Benefit (Single Life Option)	0.15	%
Income Enhancement Benefit (Joint Life Option)	0.30	%
Maximum Total Retirement Income Choice® 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits	2.65	%
Current Total Retirement Income Choice® 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits	1.90	%
Retirement Income Choice® 1.4 Rider (annual charge, a % of withdrawal base):
This Rider is No Longer Available for New Sales
Base Benefit Designated Allocation Group A (Maximum)	2.15	%
Base Benefit Designated Allocation Group A (Current)	1.40	%
Base Benefit Designated Allocation Group B (Maximum)	1.75	%
Base Benefit Designated Allocation Group B (Current)	1.00	%
Base Benefit Designated Allocation Group C (Maximum)	1.20	%
Base Benefit Designated Allocation Group C (Current)	0.45	%
Additional Benefits available with the Retirement Income Choice® 1.4 Rider:
Death Benefit (Single Life Option)	0.25	%
Death Benefit (Joint Life Option)	0.20	%
Income Enhancement Benefit (Single Life Option)	0.15	%
Income Enhancement Benefit (Joint Life Option)	0.30	%
Maximum Total Retirement Income Choice® 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits	2.65	%
Current Total Retirement Income Choice® 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits	1.90	%
Income Link® Rider (annual charge a - % of withdrawal base):
Base Benefit (Maximum)	1.65	%
Base Benefit (Current)	0.90	%
Retirement Income MaxSM Rider (annual charge a % of withdrawal base):
Base Benefit (Maximum)	1.75	%
Base Benefit (Current)	1.00	%

The next section shows the lowest and highest total operating expenses charged by the underlying fund portfolios for the year ended December 31, 2010 (before any fee waiver or expense reimbursements). Expenses may be higher or lower in future years. More detail concerning each portfolio’s fees and expenses is contained in the prospectus for each portfolio.

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Total Portfolio Annual Operating Expenses (Expenses that are deducted from portfolio assets, including management fees, distribution and/or service 12b-1 fees, and other expenses):

Lowest Gross	0.54	%
Highest Gross	1.78	%

The following Example is intended to help you compare the cost of investing in the policy with the cost of investing in other variable annuity policies. These costs include policy owner transaction expenses, policy fees, separate account annual expenses, and portfolio fees and expenses.

The Example assumes that you invest $10,000 in the policy for the time periods indicated. The Example also assumes that your investment has a 5% return each year, the highest fees and expenses of any of the portfolios for the year ended December 31, 2010, and the base policy with the combination of available optional features or riders with the highest fees and expenses, including the Highest Fund Facilitation Fee, Annual Step-Up Death Benefit, Additional Death Distribution+ Rider, and Retirement Income Choice^® 1.2 Rider - Joint Life with additional Death Benefit and Income Enhancement options. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Expense Examples:

If the policy is surrendered at the end of the applicable time period:

1 Year	$	659
3 Years	$	1984
5 Years	$	3321
10 Years	$	6713

If the policy is annuitized at the end of the applicable time period or if you do not surrender your policy:

1 Year	$	659
3 Years	$	1984
5 Years	$	3321
10 Years	$	6713

Please remember that the Example is an illustration and does not represent past or future expenses. Your actual expenses may be lower or higher than those reflected in the Example. Similarly, your rate of return may be more or less than the 5% assumed in the Example.

For information concerning compensation paid for the sale of the policies, see “Distributor of the Policies.”

NOTES TO FEE TABLE AND EXPENSE EXAMPLES

Annuity Policy Fee Table and Expense Examples: The fee table applies only to the accumulation phase and reflects the maximum charges unless otherwise noted. During the income phase the fees may be different than those described in the Fee Table. See section “5. Expenses”.

Policy Owner Transaction Expenses:

Maximum Surrender Charge: If you select the Life with Emergency Cash^® annuity payment option, you will be subject to a surrender charge after the annuity commencement date. See section “5. Expenses”.

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Transfer Fee: The transfer fee, if any is imposed, applies to each policy, regardless of how policy value is allocated among the investment choices. There is no fee for the first 12 transfers per policy year. For additional transfers, the Company may charge a fee of $10 per transfer.

Special Service Fees: We may deduct a charge for special services, such as overnight delivery.

Annual Service Charge:

Annual Service Charge: The annual service charge is assessed on each policy anniversary and at surrender. The charge is waived if your policy value, or the sum of your premiums less all partial surrenders, is at least $50,000.

Separate Account Annual Expenses:

Mortality and Expense Risk Fee: The mortality and expense risk fee shown is for the accumulation phase with the base death benefit.

Optional Separate Account Expenses: Any optional separate account expense is in addition to the mortality and expense risk and administrative fees.

Fund Facilitation Fee: This daily fee is applied only to policy value in the subaccounts invested in the American Funds - Asset Allocation Fund - Class 2 (0.30%), American Funds - Bond Fund - Class 2 (0.30%), American Funds - Growth Fund - Class 2 (0.30%), American Funds - Growth-Income Fund - Class 2 (0.30%), AllianceBernstein Balanced Wealth Strategy Portfolio (0.20%), GE Investments Total Return Fund - Class 3 (0.20%), and the Transamerica BlackRock Global Allocation VP - Service Class (0.10%) . See section “5. Expenses”.

Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses: This reflects the base separate account expenses, the Annual Step-Up Death Benefit fee, plus the Fund Facilitation fee, but does not include any annual optional rider fees. The death benefits are mutually exclusive.

Optional Rider Fees:

Optional Rider Fees: In some cases, riders to the policy are available that provide optional benefits. There are additional fees (each year) for those riders.

Additional Death Distribution Rider and Additional Death Distribution+ Rider: This annual fee is a percentage of the policy value and is only deducted during the accumulation phase.

Living Benefits Rider: The annual fee is a percentage of the “principal back” Total Withdrawal Base. The “principal back” Total Withdrawal Base on the rider date is the policy value (less any premium enhancements if the rider is added in the first policy year). After the rider date, the “principal back” Total Withdrawal Base is equal to: the “principal back” Total Withdrawal Base on the rider date; plus subsequent premium payments; less subsequent “principal back” adjusted partial withdrawals.

Retirement Income Choice^® 1.2 Rider, Retirement Income Choice^® 1.4 Rider, Income Link^® and Retirement Income Max^SM Rider - base benefit: The fee is a percentage of the Withdrawal Base. The Withdrawal Base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During

17

any rider year, the Withdrawal Base is equal to the Withdrawal Base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent Withdrawal Base adjustments.

Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider - Additional Benefits (Single Life and Joint Life Options): You may elect the Retirement Income Choice^® 1.2 Rider or the Retirement Income Choice^® 1.4 Rider with one or more of the following options - Death Benefit or Income Enhancement Benefit. The charge for each of these options is a percentage of the Withdrawal Base and is in addition to the base benefit fee.

Maximum Total Retirement Income Choice^® 1.2 Rider and Maximum Total Retirement Income Choice^® 1.4 Rider Fees with Highest Combination of Benefits: After the fifth rider anniversary, the base benefit rider fees can increase when there is an automatic step-up. These fee totals reflect the maximum fee increase resulting from an automatic step-up of the Withdrawal Base while the rider is in effect.

Maximum Total Retirement Income Choice^® 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Maximum), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).

Current Total Retirement Income Choice^® 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Current), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).

Maximum Total Retirement Income Choice^® 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Maximum), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).

Current Total Retirement Income Choice^® 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Current), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).

Maximum Total Income Link^® Rider and Retirement Income Max^SM Rider Fees: After the first rider anniversary, the base benefit rider fees can increase when there is an automatic step-up. This fee total reflects the maximum fee increase resulting from an automatic step-up of the Withdrawal Base while the rider is in effect.

Total Portfolio Annual Operating Expenses:

Total Portfolio Annual Operating Expenses: The fee table information relating to the underlying fund portfolios was provided to the Company by the underlying fund portfolios, their investment advisors or managers, and the Company has not and cannot independently verify the accuracy or completeness of such information. Actual future expenses of the portfolios may be greater or less than those shown in the Table. “Gross” expense figures do not reflect any fee waivers or expense reimbursements. Actual expenses may have been lower than those shown in the Table.

Expense Examples:

Expense Examples: The Example does not reflect premium tax charges or transfer fees. Different fees and expenses not reflected in the Example may be assessed during the income phase of the policy.

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1. THE ANNUITY POLICY

This prospectus describes the MEMBERS^® Freedom^SM Variable Annuity policy offered by the Company. This prospectus generally describes policies issued on or after the date of this prospectus. Policies issued before that date may have different features (such as different death benefits or annuity payment options) and different charges. See “Appendix - Policy Variations” for information about older policies.

An annuity is a contract between you, the owner, and an insurance company (in this case the Company), where the insurance company promises to pay you an income in the form of annuity payments. These payments begin on a designated date, referred to as the annuity commencement date. Until the annuity commencement date, your annuity is in the accumulation phase and the earnings (if any) are tax deferred. Tax deferral means you generally are not taxed until you take money out of your annuity. After you annuitize, your annuity switches to the income phase.

The policy is a flexible premium deferred variable annuity. You can use the policy to accumulate funds for retirement or other long-term financial planning purposes. Your individual investment and your rights are determined primarily by your own policy.

The policy is a “flexible premium” annuity because after you purchase it, you can generally make additional investments of $50 or more until the annuity commencement date. You are not required to make any additional investments.

The policy is a “variable” annuity because the value of your investments can go up or down based on the performance of your investment choices. If you invest in the separate account, the amount of money you are able to accumulate in your policy during the accumulation phase depends upon the performance of your investment choices. You could lose the amount you allocate to the separate account. The amount of annuity payments you receive during the income phase from the separate account also depends upon the investment performance of your investment choices for the income phase. However, if you annuitize under the Initial Payment Guarantee feature, then you will receive stabilized annuity payments that will never be less than a percentage of your initial variable annuity payment. There is an extra charge for this feature.

The policy also contains a fixed account. The fixed account offers interest at rates that we guarantee will not decrease during the selected guaranteed period. There may be different interest rates for each different guaranteed period that you select.

Do not purchase this policy if you plan to use it, or any of its riders, for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme. Your contract is not intended or designed to be traded on any stock exchange or secondary market. By purchasing this contract, you represent and warrant that you are not using the contract, or any of its riders for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme.

2. PURCHASE

Policy Issue Requirements

The Company will not issue a policy unless:

• the Company receives in good order (at our Administrative and Service Office) all information needed to issue the policy;

• the Company receives in good order (at our Administrative and Service Office) a minimum initial premium payment; and

• the annuitant, owner, and any joint owner are age 90 or younger (the limit may be lower for qualified policies).

19

We reserve the right to reject any application or premium payment.

Premium Payments

You should make checks for premium payments payable only to Transamerica Life Insurance Company and send them to the Administrative and Service Office. Your check must be honored in order for us to pay any associated payments and benefits due under the policy.

We do not accept cash. We reserve the right to not accept third party checks. A third party check is a check that is made payable to one person who endorses it and offers it as payment to a second person. Checks should normally be payable to Transamerica Life Insurance Company, however, in some circumstances, at our discretion we may accept third party checks that are from a rollover or transfer from other financial institutions. Any third party checks not accepted by our company will be returned.

We reserve the right to reject or accept any form of payment. Any unacceptable forms of payment will be returned.

Initial Premium Requirements

The initial premium payment for nonqualified policies must be at least $15,000, and at least $1,000 for qualified policies. You must obtain prior company approval to purchase a policy with an amount less than the stated minimum. There is generally no minimum initial premium payment for policies issued under section 403(b) of the Internal Revenue Code; however, your premium must be received within 90 days of the policy date or your policy will be canceled. We will credit your initial premium payment to your policy within two business days after the day we receive it and your complete policy information at our administrative and service office. If we are unable to credit your initial premium payment, we will contact you within five business days and explain why. We will also return your initial premium payment at that time unless you let us keep it and credit it as soon as possible.

The date on which we credit your initial premium payment to your policy is generally the policy date. The policy date is used to determine policy years, policy months and policy anniversaries.

There may be delays in our receipt of applications that are outside of our control (for example, because of the failure of the selling broker/dealer or sales agent to forward the application to us promptly, or because of delays in determining whether the policy is suitable for you). Any such delays will affect when your policy can be issued and your premium allocated among your investment choices.

Additional Premium Payments

You are not required to make any additional premium payments. However, you can generally make additional premium payments as often as you like during the accumulation phase. Additional premium payments must be at least $50. We will credit additional premium payments to your policy as of the business day we receive your premium and required information in good order at our Administrative and Service Office. Additional premium payments must be received before the close of a regular business session of the New York Stock Exchange (usually 4:00 p.m. Eastern time) to get same-day pricing of the additional premium payment.

Maximum Total Premium Payments

For issue ages 0-80, we reserve the right to reject cumulative premium payments over $1,000,000 (this includes subsequent premium payments) for policies with the same owner or same annuitant issued by us or an affiliate. For issue ages over 80, we reserve the right to reject cumulative premium payments over

20

$500,000 (this includes subsequent premium payments) for policies with the same owner or same annuitant issued by us or an affiliate.

Allocation of Premium Payments

When you purchase a policy, we will allocate your premium payment to the investment choices you select. Your allocation must be in whole percentages and must total 100%. We will allocate additional premium payments the same way, unless you request a different allocation.

If you allocate premium payments to the Dollar Cost Averaging program, you must give us instructions regarding the subaccount(s) to which transfers are to be made or we cannot accept your premium payment.

You may change allocations for future additional premium payments by sending written instructions to our Administrative and Service Office, or by telephone, subject to the limitations described under “Telephone Transactions”. The allocation change will apply to premium payments received on or after the date we receive the change request in good order.

You could lose the amount you allocate to the variable subaccounts.

The Company reserves the right to restrict or refuse any premium payment.

Policy Value

You should expect your policy value to change from valuation period to valuation period. A valuation period begins at the close of regular trading on the New York Stock Exchange on each business day and ends at the close of regular trading on the next succeeding business day. A business day is each day that the New York Stock Exchange is open. The New York Stock Exchange generally closes at 4:00 p.m. Eastern time. Holidays are generally not business days.

3. INVESTMENT CHOICES

The Separate Account

The following variable subaccounts are available under the policy for new investors, but may not be available for all policies. The subaccounts invest in shares of the various underlying fund portfolios. The companies that provide investment advice and administrative services for the underlying fund portfolios offered through this policy are listed below. The following variable investment choices are currently offered through this policy. Please be certain to review the notes following the list of variable investment choices.

Note: If you received a summary prospectus for any of the portfolios listed below, please follow the instructions on the first page of the summary prospectus to obtain a copy of the full fund prospectus.

ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

Managed by AllianceBernstein L.P.

AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

AMERICAN FUNDS INSURANCE SERIES^® TRUST

Managed by Capital Research and Management Company^SM

American Funds – Asset Allocation Fund – Class 2

American Funds – Bond Fund – Class 2

American Funds – Growth Fund – Class 2

American Funds – Growth-Income Fund – Class 2

21

FIDELITY^® VARIABLE INSURANCE PRODUCTS FUND

Managed by Fidelity Management & Research Company

Fidelity VIP Balanced Portfolio – Service Class 2

FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

Managed by Franklin Advisers, Inc.

Franklin Income Securities Fund – Class 2

GE INVESTMENTS FUNDS, INC.

Managed by GE Asset Management, Inc.

GE Investments Total Return Fund – Class 3

TRANSAMERICA SERIES TRUST

Subadvised by AEGON USA Investment Management, LLC

Transamerica AEGON High Yield Bond VP – Service Class

Transamerica AEGON Money Market VP – Service Class

Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica Index 35 VP – Service Class

Transamerica Index 50 VP – Service Class

Transamerica Index 75 VP – Service Class

Transamerica Index 100 VP – Service Class

Subadvised by Alliance Bernstein L.P.

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

Subadvised by BlackRock Financial Management, Inc.

Transamerica BlackRock Tactical Allocation VP – Service Class

Subadvised by BlackRock Investment Management, LLC

Transamerica BlackRock Large Cap Value VP – Service Class

Subadvised by Foxhall Capital Management, Inc.

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica Foxhall Global Commodities & Hard Assets VP – Service Class

Subadvised by ING Clarion Real Estate Securities, LLC

Transamerica Clarion Global Real Estate Securities VP – Service Class

Subadvised by MFS^® Investment Management

Transamerica MFS International Equity VP – Service Class

Subadvised by MEMBERS^® Asset Management

Transamerica Madison Balanced Allocation VP – Service Class

Transamerica Madison Conservative Allocation VP – Service Class

Transamerica Madison Diversified Income VP – Service Class

Transamerica Madison Large Cap Growth VP – Service Class

Transamerica Madison Moderate Growth Allocation VP – Service Class

Subadvised by Morgan Stanley Investment Management Inc.

Transamerica Morgan Stanley Active International Allocation VP – Service Class

Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class

Subadvised by Pacific Investment Management Company LLC

Transamerica PIMCO Real Return TIPS VP – Service Class

Transamerica PIMCO Total Return VP – Service Class

Subadvised by T. Rowe Price Associates, Inc.

Transamerica T. Rowe Price Small Cap VP – Service Class

Advised by Transamerica Asset Management, Inc.

Transamerica BlackRock Global Allocation VP – Service Class

NOTES TO VARIABLE INVESTMENT CHOICES

Some subaccounts may be available for certain policies and may not be available for all policies. You should work with your registered representative to decide which subaccount(s) may be appropriate for you based on a thorough analysis of your particular insurance needs,

22

financial objectives, investment goals, time horizons, and risk tolerance.

There can be no assurance that the Transamerica AEGON Money Market VP – Service Class portfolio will be able to maintain a stable net asset value per share. During extended periods of low interest rates, and partly as a result of policy charges, the yield on the Transamerica AEGON Money Market VP – Service Class subaccount may become extremely low and possibly negative.

The general public may not purchase shares of any of these underlying fund portfolios. The names and investment objectives and policies may be similar to other portfolios managed by the same investment advisor or manager that are sold directly to the public. You should not expect the investment results of the underlying fund portfolios to be the same as those of other portfolios.

More detailed information, including an explanation of the portfolios’ fees and investment objectives, may be found in the current prospectuses for the underlying fund portfolios, which accompany this prospectus. You should read the prospectuses for the underlying fund portfolios carefully before you invest.

Selection of Underlying Portfolios

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

We have developed this variable annuity product in cooperation with one or more distributors, and have included certain underlying fund portfolios based on their recommendations; their selection criteria may differ from our selection criteria.

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

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

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

23

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

We do not guarantee that any of the subaccounts will always be available for premium payments, allocations, or transfers. We reserve the right, subject to compliance with applicable law, to make certain changes to the separate account and its investments. We reserve the right to add new portfolios [or portfolio classes], close existing portfolios [or portfolio classes], or substitute portfolio shares that are held by any subaccount for shares of a different portfolio. We will not add, delete or substitute any underlying fund portfolio shares attributable to your interest in a subaccount without notice to you and prior approval of the SEC, to the extent required by the 1940 Act or other applicable law.

We reserve the right to limit the number of subaccounts you are invested in at any one time.

Addition, Deletion, or Substitution of Investments

The Company cannot and does not guarantee that any of the subaccounts will always be available for premium payments, allocations, or transfers. The Company retains the right, subject to any applicable law, to make certain changes in the separate account and its investments. The Company reserves the right to eliminate the shares of any portfolio held by a subaccount and to substitute shares of another portfolio of the underlying fund portfolios, or of another registered open-end management investment company for the shares of any portfolio, if the shares of the portfolio are no longer available for investment or if, in the Company’s judgment, investment in any portfolio would be inappropriate in view of the purposes of the separate account. To the extent required by the 1940 Act, as amended, substitutions of shares attributable to your interest in a subaccount will not be made without prior notice to you and the prior approval of the Securities and Exchange Commission (“SEC”). Nothing contained herein shall prevent the separate account from purchasing other securities for other series or classes of variable annuity policies, or from affecting an exchange between series or classes of variable annuity policies on the basis of your requests.

New subaccounts may be established when, in the sole discretion of the Company, marketing, tax, investment or other conditions warrant. Any new subaccounts may be made available to existing owners on a basis to be determined by the Company. Each additional subaccount will purchase shares in a mutual fund portfolio, or other investment vehicle. The Company may also eliminate one or more subaccounts if, in its sole discretion, marketing, tax, investment or other conditions warrant such change. In the event any subaccount is eliminated, the Company will notify you and request a reallocation of the amounts invested in the eliminated subaccount.

Similarly, the Company may, at its discretion, close a subaccount to new investment (either transfers or premium payments). Any amounts that would otherwise be invested in a closed subaccount (for premium allocations, portfolio rebalancing, dollar cost averaging, automatic checking account or payroll deductions for period premiums, etc.) will, if you do not provide instructions for a new allocation be invested in the subaccount that invests in a portfolio of money market instruments. If a portfolio of money market instruments is unavailable, the Company will reinvest the amounts in another subaccount, or in the fixed account, if appropriate.

In the event of any such substitution or change, the Company may, by appropriate endorsement, make such changes in the policies as may be necessary or appropriate to reflect such substitution or change. Furthermore, if deemed to be in the best interests of persons having voting rights under the policies, the separate account may be (1) operated as a management company under the 1940 Act or any

24

other form permitted by law, (2) deregistered under the 1940 Act in the event such registration is no longer required or (3) combined with one or more other separate accounts. To the extent permitted by applicable law, the Company also may (1) transfer the assets of the separate account associated with the policies to another account or accounts, (2) restrict or eliminate any voting rights of owners or other persons who have voting rights as to the separate account, (3) create new separate accounts, (4) add new subaccounts to or remove existing subaccounts from the separate account, or combine subaccounts, or (5) add new underlying fund portfolios, or substitute a new fund for an existing fund.

Static Allocation Models

A Static Allocation Model is an allocation strategy comprised of two or more underlying fund portfolios that together provide a unique allocation mix not available as a single underlying fund portfolio. Policy owners that elect a Static Allocation Model directly own subaccount units of the underlying fund portfolios that comprise a particular model. In other words, a Static Allocation Model is not a group of underlying fund portfolios with one accumulation/annuity unit value, but rather, direct investment in a certain allocation of subaccounts. There is no additional charge associated with investing in a Static Allocation Model.

Each of the Static Allocation Models is just that: static. The allocations or “split” between one or more subaccounts is not monitored and adjusted to reflect changing market conditions. However, a policy owner’s investment in a Static Allocation Model will be rebalanced annually to ensure that the assets are allocated to the percentages in the same proportion that they were allocated at the time of election.

Only one Static Allocation Model may be elected at any one time. Additionally, the entire policy value must be allocated to the elected model.

You may request to transfer from one model to another, or transfer from a model to any other investment option. Each transfer into or out of a Static Allocation Model is considered one transfer.

The Fixed Account

Premium payments allocated and amounts transferred to the fixed account become part of the Company’s general account. Interests in the general account have not been registered under the Securities Act of 1933 (the “1933 Act”), nor is the general account registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are generally subject to the provisions of the 1933 or 1940 Acts. Disclosures relating to interests in the general account may, however, be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy of statements made in a registration statement.

While we do not guarantee that the fixed account will always be available for investment, we do guarantee that the interest credited to the fixed account will not be less than the guaranteed minimum effective annual interest rate shown on your policy (the “guaranteed minimum”). We determine credited rates, which are guaranteed for at least one year, in our sole discretion. You bear the risk that we will not credit interest greater than the guaranteed minimum. At the end of the guaranteed period option you selected, the value in that guaranteed period option will automatically be transferred into a new guaranteed period option of the same length (or the next shorter period if the same period is no longer offered) at the current interest rate for that period. You can transfer to another investment choice by giving us notice within 30 days before the end of the expiring guaranteed period.

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Full and partial surrenders and transfers from a guaranteed period option of the fixed account are generally subject to an excess interest adjustment (except at the end of the guaranteed period). This adjustment will also be made to amounts that you apply to an annuity payment option. This adjustment may increase or decrease the amount of interest credited to your policy. The excess interest adjustment will not decrease the interest credited to your policy below the guaranteed minimum.

We also guarantee that upon full surrender your cash value attributable to the fixed account will not be less than the amount required by the applicable nonforfeiture law at the time the policy is issued.

If you select the fixed account, your money will be placed with the Company’s other general assets. The amount of money you are able to accumulate in the fixed account during the accumulation phase depends upon the total interest credited. The amount of each annuity payment you receive during the income phase from the fixed portion of your policy will remain level for the entire income phase.

We reserve the right to refuse any premium payment or transfer to the fixed account.

Transfers

During the accumulation phase, you may make transfers to or from any investment choice within certain limitations.

Transfers out of a guaranteed period option of the fixed account are limited to the following:

• Transfers at the end of a guaranteed period. No excess interest adjustment will apply.

• Transfers of amounts equal to interest credited. This may affect your overall interest-crediting rate, because transfers are deemed to come from the oldest premium payment first.

• Other than at the end of a guaranteed period, transfers of amounts from the guaranteed period option in excess of amounts equal to interest credited, are subject to an excess interest adjustment. If it is a negative adjustment, the maximum amount you can transfer in any one policy year is 25% of the amount in that guaranteed period option, less any previous transfers during the current policy year. If it is a positive adjustment, we do not limit the amount that you can transfer.

Each transfer must be at least $500, or the entire subaccount value. Transfers of interest from a guaranteed period option of the fixed account must be at least $50. If less than $500 remains as a result of the transfer, then we reserve the right to include that amount in the transfer. Transfer requests must be received in good order at our Administrative and Service Office while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction.

The number of transfers permitted may be limited and a $10 charge for each transfer in excess of 12 in any policy year may apply. We reserve the right to prohibit transfers to the fixed account.

During the income phase, you may transfer values out of any subaccount; however, you cannot transfer values out of the fixed account. The minimum amount that can be transferred during this phase is the lesser of $10 of monthly income, or the entire monthly income of the annuity units in the subaccount from which the transfer is being made.

Transfers made by telephone are subject to the limitations described below under “Telephone Transactions.”

Market Timing and Disruptive Trading

Statement of Policy. This variable insurance product was not designed for the use of market timers or frequent or disruptive traders. (Frequent transfers are

26

considered to be disruptive.) 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 policy owners (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 policy owners invested in those subaccounts, not just those making the transfers.

We have developed policies and procedures with respect to market timing and disruptive trading (which vary for certain subaccounts at the request of the corresponding underlying fund portfolios) and we do not make special arrangements or grant exceptions to accommodate market timing or potentially disruptive trading. As discussed herein, we cannot detect or deter all market timing or potentially disruptive trading. Do not invest with us if you intend to conduct market timing or potentially disruptive trading.

Detection. We employ various means in an attempt to detect and deter market timing and disruptive trading. However, despite our monitoring we may not be able to detect nor halt all harmful trading. In addition, because other insurance companies (and retirement plans) with different policies and procedures may invest in the underlying fund portfolios, we cannot guarantee that all harmful trading will be detected or that an underlying fund portfolio will not suffer harm from market timing and disruptive trading among subaccounts of variable products issued by these other insurance companies or retirement plans.

Deterrence. If we determine you 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 policy owners (or others having an interest in the variable insurance products). As described below, restrictions may take various forms, but under our current policies and procedures will include loss of expedited transfer privileges. We consider transfers by telephone, fax, overnight mail, or the Internet to be “expedited” transfers. This means that we would accept only written transfer requests with an original signature transmitted to us only by U.S. mail. We may also restrict the transfer privileges of others acting on your behalf, including your registered representative or an asset allocation or investment advisory service.

We reserve the right to reject any premium payment or transfer request from any person without prior notice, if, in our judgment, (1) the payment or transfer, or series of transfers, would have a negative impact on an underlying fund portfolio’s operations,

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or (2) if an underlying fund portfolio would reject or has rejected our purchase order or has instructed us not to allow that purchase or transfer, or (3) because of a history of market timing or disruptive trading. We may impose other restrictions on transfers, or even prohibit transfers for any owner who, in our view, has abused, or appears likely to abuse, the transfer privilege on a case-by-case basis. We may, at any time and without prior notice, discontinue transfer privileges, modify our procedures, impose holding period requirements or limit the number, size, frequency, manner, or timing of transfers we permit. Because determining whether to impose any such special restrictions depends on our judgement and discretion, it is possible that some policy owners could engage in disruptive trading that is not permitted for others. We also reserve the right to reverse a potentially harmful transfer if an underlying fund portfolio refuses or reverses our order; in such instances some policy owners may be treated differently than others in that some transfers may be reversed and others allowed. For all of these purposes, we may aggregate two or more 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 these 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:

• impose redemption fees on transfers; or

• expressly limit the number or size of transfers in a given period except for certain subaccounts where an underlying fund portfolio has advised us to prohibit certain transfers that exceed a certain size; or

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

Please note that the limits and restrictions described herein are subject to our ability to monitor transfer activity. Our ability to detect market timing or disruptive trading may be limited by operational and technological systems, as well as by our ability to predict strategies employed by policy owners (or those acting on their behalf) to avoid detection. As a result, despite our efforts to prevent harmful trading activity among the variable investment choices available under this variable insurance product, there is no assurance that we will be able to detect or deter market timing or disruptive trading by such policy owners or intermediaries acting on their behalf. Moreover, our ability to discourage and restrict

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market timing or disruptive trading may be limited by decisions of state regulatory bodies and court orders that we cannot predict.

Furthermore, we may revise our policies and procedures in our sole discretion at any time and without prior notice, as we deem necessary or appropriate (1) to better detect and deter harmful trading that may adversely affect other policy owners, other persons with material rights under the variable insurance products, or underlying fund shareholders generally, (2) to comply with state or federal regulatory requirements, or (3) to impose additional or alternative restrictions on owners engaging in market timing or disruptive trading among the investment choices under the variable insurance product. In addition, we may not honor transfer requests if any variable investment choice that would be affected by the transfer is unable to purchase or redeem shares of its corresponding underlying fund portfolio.

Underlying Fund Portfolio Frequent Trading Policies. The underlying fund portfolios may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares. Underlying fund portfolios may, for example, assess a redemption fee (which we reserve the right to collect) on shares held for less than a certain period of time. The prospectuses for the underlying fund portfolios describe any such policies and procedures. The frequent trading policies and procedures of an underlying fund portfolio may be different, and more or less restrictive, than the frequent trading policies and procedures of other underlying fund portfolios and the policies and procedures we have adopted for our variable insurance products to discourage market timing and disruptive trading. Policy owners should be aware that we may not have the contractual ability or the operational capacity to monitor policy owners’ transfer requests and apply the frequent trading policies and procedures of the respective underlying funds that would be affected by the transfers.

Accordingly, policy owners 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.

Policy owners should be aware that we are required to provide to an underlying fund portfolio or its designee, promptly upon request, certain information about the trading activity of individual policy owners, and to restrict or prohibit further purchases or transfers by specific policy owners identified by an underlying fund portfolio as violating the frequent trading policies established for the portfolio.

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

29

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.

4. PERFORMANCE

The Company periodically advertises performance of the various subaccounts. Performance figures might not reflect charges for options, riders, or endorsements. We may disclose at least three different kinds of non-standard performance. First, we may calculate performance by determining the percentage change in the value of an accumulation unit by dividing the increase (decrease) for that unit by the value of the accumulation unit at the beginning of the period. This performance number reflects the deduction of the mortality and expense risk fees and administrative charges. It does not reflect the deduction of any applicable premium taxes, or fees for any optional riders or endorsements. Any such deduction would reduce the percentage increase or make greater any percentage decrease.

Second, advertisements may also include total return figures, which reflect the deduction of the mortality and expense risk fees and administrative charges. These figures may also reflect the premium enhancement, if any.

Third, for certain investment portfolios, performance may be shown for the period commencing from the inception date of the investment portfolio (i.e., before commencement of subaccount operations). These figures should not be interpreted to reflect actual historical performance of the subaccounts.

Not all types of performance data presented reflect all of the fees and charges that may be deducted (such as fees for optional benefits); performance figures would be lower if these charges were included.

5. EXPENSES

Note: The following section on expenses and the Annuity Policy Fee Table and Expense Examples only apply to policies issued after the date of this prospectus. See “Appendix - Policy Variations” for information about older policies.

There are charges and expenses associated with your policy that reduce the return on your investment in the policy.

Excess Interest Adjustment

Surrenders and transfers from the fixed account may be subject to an excess interest adjustment. This adjustment could retroactively reduce the interest credited in the fixed account to the guaranteed minimum or increase the amount credited. This adjustment may also apply to amounts applied to an annuity payment option. Please see “Appendix - Excess Interest Adjustment Examples” for an example showing the effect of a hypothetical excess interest adjustment calculation.

Mortality and Expense Risk Fees

We charge a fee as compensation for bearing certain mortality and expense risks under the policy. This fee is assessed daily based on the net asset value of each subaccount. Examples of such risks include a guarantee of annuity rates, the death benefit, certain expenses of the policy, and assuming the risk that the current charges will be insufficient in the future to cover costs of administering the policy. We may also pay distribution expenses out of this charge.

During the accumulation phase:

• For the Return of Premium Death Benefit, the daily mortality and expense risk fee is at an annual rate of 1.55%.

• For the Annual Step-Up Death Benefit, the daily mortality and expense risk fee is at an annual rate of 1.75%.

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During the income phase, the mortality and expense risk fee is at an annual rate of 1.10% .

If this charge does not cover our actual costs, we absorb the loss. Conversely, if the charge more than covers actual costs, the excess is added to our surplus. We expect to profit from this charge. We may use any profit for any proper purpose, including distribution expenses.

Premium Taxes

Some states assess premium taxes on the premium payments you make. We currently do not deduct for these taxes at the time you make a premium payment. However, we will deduct the total amount of premium taxes, if any, from the policy value when:

• you begin receiving annuity payments;

• you surrender the policy; or

• a death benefit is paid.

State premium taxes currently range from 0% to 3.50%, depending on the state.

Federal, State and Local Taxes

We may in the future deduct charges from the policy for any taxes we incur because of the policy. However, no deductions are being made at the present time.

Special Service Fees

We will deduct a charge for special services, such as overnight delivery, up to $25 per service provided.

Transfer Fee

You are generally allowed to make 12 free transfers per policy year before the annuity commencement date. If you make more than 12 transfers per year, we reserve the right to charge $10 for each additional transfer. Premium payments, Asset Rebalancing, and Dollar Cost Averaging transfers do not count as one of your free transfers. All transfer requests made at the same time are treated as a single transfer.

Administrative Charges

We deduct a daily administrative charge to cover the costs of administering the policy (including certain distribution-related expenses). This charge is equal to an annual rate of 0.15% of the daily net asset value of each subaccount during both the accumulation phase and the income phase.

In addition, during the accumulation phase, an annual service charge of $35 (but not more than 2% of the policy value) is charged on each policy anniversary and at surrender. The service charge is waived if your policy value or the sum of your premiums, less all partial surrenders, is at least $50,000.

Initial Payment Guarantee

If you elect the Initial Payment Guarantee feature at the time of annuitization, there is a fee (during the income phase) currently at an annual rate of 1.25% of the daily net asset value. This fee may be higher or lower at the time you annuitize and elect the feature.

Fund Facilitation Fee

We charge a fund facilitation fee in order to make certain funds available as investment choices under the policies. We apply the fee to funds that do not provide us with the amount of revenue we require in order for us to meet our expenses and revenue targets. This fee is assessed daily based on the net asset value of subaccounts that we specify. The fund facilitation fee, expressed as an annual rate is:

• 0.30% if you choose the American Funds - Asset Allocation Fund – Class 2

• 0.30% if you choose the American Funds - Bond Fund – Class 2

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• 0.30% if you choose the American Funds – Growth Fund – Class 2

• 0.30% if you choose the American Funds – Growth-Income Fund – Class 2

• 0.20% if you choose the AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

• 0.20% if you choose the GE Investments Total Return Fund – Class 3

• 0.10 % if you choose the Transamerica BlackRock Global Allocation VP – Service Class

Additional Death Distribution

If you elect the Additional Death Distribution, there is an annual rider fee during the accumulation phase of 0.25% of the policy value. The rider fee will be deducted on each rider anniversary and upon termination of the rider during the accumulation phase. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Additional Death Distribution+

If you elect the Additional Death Distribution+, there is an annual rider fee during the accumulation phase of 0.55% of the policy value. The rider fee will be deducted on each rider anniversary and upon termination of the rider during the accumulation phase. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Life with Emergency Cash^® Surrender Charge

If you select the Life with Emergency Cash^® annuity payment option, then you can surrender your policy even after annuity payments have begun. However, there is a surrender charge during the first four years after the annuity commencement date (no matter which policy or variation thereof you previously purchased). The following schedule shows the current surrender charge:

Number of Years Since Annuity Commencement Date	Surrender Charge (as a percentage of adjusted policy  value)
0 – 1		4	%
1 – 2		3	%
2 – 3		2	%
3 – 4		1	%
more than 4		0	%

We can change the surrender charge, and you will be subject to whatever surrender schedule is in effect at the time you annuitize under the Life with Emergency Cash^® annuity payment option.

Note carefully the following three things about this surrender charge:

• this surrender charge is measured from the annuity commencement date and not from the premium payment date;

• this surrender charge is a percentage of the adjusted policy value applied to the Life with Emergency Cash^® annuity payment option, and not a percentage of premium; and

• under this payment option, there is no surrender charge free amount.

Living Benefits Rider

If you elect the Living Benefits Rider, there is an annual rider fee of 0.90% of the “principal back” total withdrawal base on each rider anniversary before annuitization. We will also deduct the rider fee upon full surrender of the policy or other termination of the rider. The rider fee is deducted from each investment choice in proportion to the amount of policy value in each investment choice. Generally, the rider fee is deducted even if your policy value exceeds your total withdrawal base.

We will continue to calculate the rider fee using the “principal back” total withdrawal base even after the “principal back” minimum remaining withdrawal amount reaches zero. The “principal back” total withdrawal base is always greater than or equal to the “for life” total withdrawal base.

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Retirement Income Choice^® 1.2 Rider and Additional Options Fees

If you elect the Retirement Income Choice^® 1.2 rider, then the rider fee, which is charged quarterly before annuitization, depends on the allocation option that you choose. If you choose the Open Allocation option, then the fee for the base benefit (for either single or joint life) is 1.20% (on an annual basis) of the withdrawal base. If you choose the Designated Investment option, then the fee for the base benefit (for single or joint life) is 1.40%, 1.00%, and 0.45% (on an annual basis) of the withdrawal base for allocating 100% of your policy value in Designated Allocation Allocation Group A, Designated Allocation Group B, or Designated Allocation Group C, respectively. If you elect a combination of designated investment options among various classes, then your fee will be based on a weighted average of your choices. If you elect options with the Retirement Income Choice^® 1.2 rider, then for each option you elect, you will be charged a fee that is a percentage of the withdrawal base on each rider quarter before annuitization, and is in addition to the rider fee for the base benefit. The additional fees, on an annual basis, are as follows:

Options	Single Life Option			Joint Life Option
Death Benefit		0.25	%		0.20	%
Income Enhancement Benefit		0.15	%		0.30	%

We will also deduct any rider fee pro rata upon full surrender of the policy or other termination of the rider. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Retirement Income Choice^® 1.4 Rider and Additional Options Fees - This Rider is No Longer Available for New Sales

If you elect the Retirement Income Choice^® 1.4 rider, then the rider fee, which is charged quarterly before annuitization, is 1.40%, 1.00%, and 0.45% (on an annual basis) of the withdrawal base for allocating 100% of your policy value in Designated Allocation Allocation Group A, Designated Allocation Group B, or Designated Allocation Group C, respectively. If you elect a combination of designated investment options among various classes, then your fee will be based on a weighted average of your choices. If you elect options with the Retirement Income Choice^® 1.4 rider, then for each option you elect, you will be charged a fee that is a percentage of the withdrawal base on each rider quarter before annuitization, and is in addition to the rider fee for the base benefit. The additional fees, on an annual basis, are as follows:

	Single Life			Joint Life
Options	Option			Option
Death Benefit		0.25	%		0.20	%
Income Enhancement Benefit		0.15	%		0.30	%

We will also deduct any rider fee pro rata upon full surrender of the policy or other termination of the rider. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Income Link^® Rider Fee

If you elect the Income Link^® rider, then the rider fee, which is charged quarterly before annuitization, is 0.90% (on an annual basis) of the withdrawal base.

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We will also deduct the rider fee pro rata upon full surrender of the policy or other termination of the rider. The rider fee is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Retirement Income Max^SM Rider Fees

If you elect the Retirement Income Max^SM rider, then the rider fee, which is charged quarterly before annuitization, is 1.00% (on an annual basis) of the withdrawal base. We will also deduct the rider fee pro rata upon full surrender of the policy or other termination of the rider. The rider fee(s) is deducted from each investment choice in proportion to the amount of policy value in each investment choice.

Portfolio Fees and Expenses

The value of the assets in each subaccount will reflect the fees and expenses paid by the underlying fund portfolios. The lowest and highest fund expenses for the previous calendar year are found in the Annuity Policy Fee Table section of this prospectus. See the prospectuses for the underlying fund portfolios for more information.

Revenue We Receive

This prospectus describes generally the payments that we (and/or our affiliates) may directly or indirectly receive from the underlying fund portfolios, their advisers, subadvisers, distributors or affiliates thereof, in connection with certain administrative, marketing and other support services we (and/or our affiliates) provide and expenses we incur in offering and selling our variable insurance products. These arrangements are sometimes referred to as “revenue sharing” arrangements and are described further below. While only certain of the types of payments described below may be made in connection with your particular policy, all such payments may nonetheless influence or impact actions we (and/or our affiliates) take, and recommendations we (and our affiliates) make, regarding each of the variable insurance products that we (and our affiliates) offer, including your policy.

We (and/or our affiliates) may receive some or all of the following types of payments:

• Rule 12b-1 Fees. Our affiliate Transamerica Capital, Inc. (“TCI”) is the principal underwriter for the policies and directly or indirectly receives some or all of the 12b-1 fees from the funds available as investment choices under our variable insurance products. Any 12b-1 fees received by TCI that are attributable to our variable insurance products are then credited to us. These fees range from 0.00% to 0.25% of the average daily assets of the certain underlying fund portfolios attributable to the policies and to certain other variable insurance products that we and our affiliates issue.

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

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The following chart provides the maximum combined percentages of 12b-1 fees and Support Fees that we anticipate will be paid to us on an annual basis. Please note: Some of the underlying funds listed in the chart below may not currently be available under your policy:

Incoming Payments to the Company and/or TCI

	Maximum Fee
Fund	% of assets
TRANSAMERICA SERIES TRUST		0.25	%
AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS)		0.50	%
ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.		0.45	%
AMERICAN FUNDS INSURANCE SERIES® TRUST		0.25	%
FIDELITY® VARIABLE INSURANCE PRODUCTS FUND		0.35	%
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST		0.35	%
GE INVESTMENTS FUNDS, INC.		0.45	%

NOTES TO INCOMING PAYMENTS TABLE:

Maximum Fee % of Assets: Payments are based on a percentage of the average assets of each underlying fund portfolio owned by the subaccounts available under this policy and under certain other variable insurance products offered by our affiliates and us. We and/or TCI 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 and TCI provide.

Transamerica Series Trust (“TST”): Because TST is managed by Transamerica Asset Management, Inc. (“TAM”), an affiliate of ours, there are additional benefits to us and our affiliates for amounts you allocate to the TST underlying fund portfolios, in terms of our and our affiliates’ overall profitability. These additional benefits may be significant. Payments or other benefits may be received from TAM. Such payments or benefits may be entered into for a variety of purposes, such as to allocate resources to us to provide administrative services to the policyholders who invest in the TST underlying fund portfolios. These payments or benefits may take the form of internal credits, recognition, or cash payments. A variety of financial and accounting methods may be used to allocate resources and profits to us. Additionally, if a TST portfolio is sub-advised by an entity that is affiliated with us, we may retain more revenue than on those TST portfolios that are sub-advised by non-affiliated entities. During 2010 we received $72,069,379 in benefits from TAM pursuant to these arrangements. This includes the 0.25% amount in the above chart. We anticipate receiving comparable amounts in the future.

Fidelity^® Variable Insurance Products Fund: We receive this percentage once $100 million in fund shares are held by the subaccounts of the Company and its affiliates.

• Other Payments. TCI also serves as the wholesale distributor for the policies, and in that capacity directly or indirectly receives additional amounts or different percentages of assets under management from certain advisers and sub-advisers to the underlying fund portfolios (or their affiliates) with regard to variable insurance products and/or mutual funds that are issued by us and our affiliates. These amounts may be derived, in whole or in part, from the profits the investment adviser or sub-adviser receives from the advisory fee deducted from underlying fund portfolio assets. Policy owners, through their indirect investment in the underlying fund portfolios, bear the costs of these advisory fees. Certain advisers and sub-advisers of the underlying fund portfolios (or their affiliates):

• may each directly or indirectly 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 as well as internal and external meetings and events that are attended by TCI’s wholesalers and/or other TCI employees.

• may provide our affiliates and/or selling firms with wholesaling services to assist us in the distribution of the policies.

• may provide us and/or certain affiliates and/or selling firms with occasional gifts, meals, tickets or other compensation as an incentive to market the underlying fund portfolios and to assist with their promotional efforts. The amounts may be significant and these arrangements provide the adviser or subadviser (or other affiliates) with increased access to us and to our

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affiliates involved in the distribution of the policies.

For the calendar year ended December 31, 2010, TCI or its affiliates received total revenue sharing payments in the amount of $1,769,559 from the following Fund managers and/or sub-advisers to participate in TCI’s events: Alliance Bernstein Investments, American Funds, BlackRock Investment Management, LLC., BNY Melon, , Federated Equity Management Co, of PA, Fidelity Investments, Foxhall Capital Management, Franklin Templeton Investments, GE Asset Management, Hanlon Investment Management Inc., ING Clarion Real Estate Securities, Invesco AIM, Janus Capital, Jennison Associates, JPMorgan Investment Management, Loomis, Sayles & Company, MFS Investment Management, Neuberger Berman Management, Oppenheimer Funds, Pacific Investment Management Company, Putnam, Schroder Investment Management North America, Transamerica Investment Management, Van Kampen Investments, Vanguard, Wellington Management Company. Please note some of the aforementioned managers and/or subadvisors may not be associated with underlying fund portfolios currently available in this product.

Proceeds from certain of these payments by the underlying fund portfolios, the advisers, the sub-advisers and/or their affiliates may be used for any corporate purpose, including payment of expenses (1) that we and our affiliates incur in promoting, marketing, and administering the policy, and (2) that we incur, in our role as intermediary, in promoting, marketing, and administering the underlying fund portfolios. We and our affiliates may profit from these payments.

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

6. ACCESS TO YOUR MONEY

During the accumulation phase, you can have access to the money in your policy in the following ways:

• by making a surrender (either a full or partial surrender); or

• by taking systematic payouts (See “Section 10, Systematic Payout Option” for more details).

Surrenders

If you take a full surrender, you will receive your cash value.

If you want to take a partial surrender, in most cases it must be for at least $500. Unless you tell us otherwise, we will take the surrender from each of the investment choices in proportion to the policy value.

Remember that any surrender you take will reduce the policy value, and the amount of the death benefit. See “Section 8, Death Benefit”, for more details. A partial surrender also may have a negative impact on certain other benefits and guarantees of your Contract.

Surrenders from qualified policies may be restricted or prohibited.

During the income phase, you will receive annuity payments under the annuity payment option you select; however, you generally may not take any other surrenders, either full or partial, unless you elect a Life with Emergency Cash^® payment option.

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If your policy was issued pursuant to a 403(b) plan, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders, loans or transfers you request comply with applicable tax requirements and to decline requests that are not in compliance. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender, loan or transfer, you consent to the sharing of confidential information about you, the policy, and transactions under the policy and any other 403(b) contracts or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.

Delay of Payment and Transfers

Payment of any amount due from the separate account for a surrender, a death benefit, or the death of the owner of a nonqualified policy, will generally occur within seven days from the date we receive in good order all required information at our Administrative and Service Office. We may defer such payment from the separate account if:

• the New York Stock Exchange is closed other than for usual weekends or holidays or trading on the Exchange is otherwise restricted;

• an emergency exists as defined by the SEC or the SEC requires that trading be restricted; or

• the SEC permits a delay for the protection of owners.

Transfers of amounts from the subaccounts also may be deferred under these circumstances. In addition, if, pursuant to SEC rules, the Transamerica AEGON Money Market VP portfolio suspends payment of redemption proceeds in connection with a liquidation of the portfolio, then we may delay payment of any transfer, partial withdrawal, surrender, loan, or death benefit from the Transamerica AEGON Money Market VP portfolio until the portfolio is liquidated.

Any payment or transfer request which is not in good order will cause a delay.

Federal laws designed to counter terrorism and prevent money laundering by criminals might in certain circumstances require us to reject a premium payment and/or “freeze” a policy owner’s account. If these laws apply in a particular situation, we would not be allowed to pay any request for withdrawals, surrenders, or death benefits, make transfers, or continue making annuity payments absent instructions from the appropriate federal regulator. We may also be required to provide information about you and your policy to government agencies or departments.

Pursuant to the requirements of certain state laws, we reserve the right to defer payment of the cash value from the fixed account for up to six months. We may defer payment of any amount until your premium payment check has cleared your bank.

Excess Interest Adjustment

Money that you transfer out of or surrender from a guaranteed period option of the fixed account before the end of its guaranteed period (the number of years you specified the money would remain in the guaranteed period option) may be subject to an excess interest adjustment. At the time you request a transfer or surrender (either full or partial), if interest rates set by the Company have risen since the date of the initial guarantee, the excess interest adjustment will result in a lower cash value on surrender or transfer. However, if interest rates have fallen since the date of the initial guarantee, the excess interest adjustment will result in a higher cash value on surrender or transfer. Please see “Appendix - Excess Interest Adjustment Examples” to see how the excess interest adjustment is calculated and illustrative examples using hypothetical values.

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Any amount surrendered in excess of the cumulative interest credited is generally subject to an excess interest adjustment. An excess interest adjustment may also be made on amounts applied to an annuity payment option.

There will be no excess interest adjustment on any of the following:

• surrenders of cumulative interest credited;

• Nursing Care and Terminal Condition Withdrawal Option surrenders;

• Unemployment Waiver surrenders;

• surrenders to satisfy any minimum distribution requirements; and

• Systematic Payout Option payments, which do not exceed cumulative interest credited at the time of payment.

Please note that in these circumstances you will not receive a higher cash value if interest rates have fallen nor will you receive a lower cash value if interest rates have risen.

The excess interest adjustment may vary for certain policies and may not be applicable for all policies.

Signature Guarantee

As a protection against fraud, we require a signature guarantee (i.e., Medallion Signature Guarantee or Notary Public Stamp as required by us) for the following transaction requests:

• Any surrenders over $250,000;

• Certain surrenders on or within 15 days of an address change;

• Any disbursement request made on or within 15 days of an ownership change;

• Any surrender when the Company has been directed to send proceeds to a different personal address from the address of record for that contract owner’s account. PLEASE NOTE: This requirement will not apply to requests made in connection with exchanges of one annuity for another with the same owner in a “tax-free exchange”;

• Any surrender when the Company does not have an originating or guaranteed signature on file;

• Any other transaction where we require.

We may change the specific requirements listed above, or add signature guarantees in other circumstances, in our discretion if we deem it necessary or appropriate to help protect against fraud. For current requirements, please refer to the requirements listed on the appropriate form or call us at (800) 552-6205.

You can obtain a Medallion signature guarantee from more than 7,000 financial institutions across the United States and Canada that participate in a Medallion signature guarantee program. This includes many:

• National and state banks;

• Savings banks and savings and loan associations;

• Securities brokers and dealers; and

• Credit Unions.

The best source of a Medallion signature guarantee is a bank, savings and loan association, brokerage firm, or credit union with which you do business. Guarantor firms may, but frequently do not, charge a fee for their services.

A notary public cannot provide a Medallion signature guarantee. Notarization will not substitute for a Medallion signature guarantee.

7. ANNUITY PAYMENTS (THE INCOME PHASE)

You choose the annuity commencement date. You can change this date by giving us notice with the information we need. New annuity commencement dates less than 30 days after we receive notice of the change require prior approval. The latest maximum

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annuity commencement date generally cannot be after the policy month following the month in which the annuitant attains age 95. The earliest annuity commencement date is at least thirty days after you purchase your policy.

Before the annuity commencement date, if the annuitant is alive, you may choose an annuity payment option or change your election. If the annuitant dies before the annuity commencement date, the death benefit is payable in a lump sum or under one of the annuity payment options (unless the surviving spouse continues the policy).

Unless you specify otherwise, the annuitant will receive the annuity payments. After the annuitant’s death, the beneficiary you designate at annuitization will receive any remaining guaranteed payments.

Annuity Payment Options

The policy provides several annuity payment options that are described below. You may choose any combination of annuity payment options. We will use your policy value to provide these annuity payments. If the policy value on the annuity commencement date is less than $2,000, we reserve the right to pay it in one lump sum in lieu of applying it under an annuity payment option. You can receive annuity payments monthly, quarterly, semi-annually, or annually. (We reserve the right to change the frequency if payments would be less than $50.)

If you choose to receive fixed payments, then the amount of each payment will be set on the annuity commencement date and will not change. You may, however, choose to receive variable payments. The dollar amount of the first variable payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the policy. The dollar amount of additional variable payments will vary based on the investment performance of the subaccount(s) you select. The dollar amount of each variable payment after the first may increase, decrease, or remain constant. If the actual investment performance (net of fees and expenses) exactly matched the assumed investment return of 5% at all times, the amount of each variable annuity payment would remain constant. If actual investment performance (net of fees and expenses) exceeds the assumed investment return, the amount of the variable annuity payments would increase. Conversely, if actual investment performance (net of fees and expenses) is lower than the assumed investment return, the amount of the variable annuity payments would decrease. Please note that these changes only occur annually under the Initial Payment Guarantee.

A charge for premium taxes and an excess interest adjustment may be made when annuity payments begin.

The annuity payment options are explained below. Some options are fixed only and some can be fixed or variable.

Income for a Specified Period (fixed only). We will make level payments only for a fixed period. No funds will remain at the end of the period.

If your policy is a qualified policy, this payment option may not satisfy minimum required distribution rules. Consult a tax advisor before electing this option.

Income of a Specified Amount (fixed only). Payments are made for any specified amount until the amount applied to this option, with interest, is exhausted. This will be a series of level payments followed by a smaller final payment.

If your policy is a qualified policy, this payment option may not satisfy minimum required distribution rules. Consult a tax advisor before electing this option.

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Life Income. You may choose between:

• No Period Certain (fixed or variable)-Payments will be made only during the annuitant’s lifetime.

• 10 Years Certain (fixed or variable)-Payments will be made for the longer of the annuitant’s lifetime or ten years.

• Guaranteed Return of Policy Proceeds (fixed only)-Payments will be made for the longer of the annuitant’s lifetime or until the total dollar amount of payments we made to you equals the annuitized amount.

• Life with Emergency Cash^® (fixed or variable)-Payments will be made during the annuitant’s lifetime. With the Life with Emergency Cash^® feature, you are able to surrender all or a portion of the Life with Emergency Cash^® benefit. The amount you surrender must be at least $2,500. We will provide you with a Life with Emergency Cash^® benefit schedule that will assist you in estimating the amount you have available to surrender. A partial surrender will reduce all future payments pro rata. A surrender charge may apply and there may be tax consequences (consult a tax advisor before requesting a full or partial surrender). The maximum surrender charge is 4% of the annuitized amount (see “Expenses” for the surrender charge schedule). You will be subject to whatever surrender schedule is in effect at the time you annuitize under this annuity payment option. The Life with Emergency Cash^® benefit will continue through age 100 of the annuitant.

The Life with Emergency Cash^® benefit is also a death benefit that is paid upon the death of the annuitant and is generally equal to the surrender value without any surrender charges. For qualified policies the death benefit ceases on the date the annuitant reaches the IRS age limitation.

Joint and Survivor Annuity. You may choose:

• No Period Certain (fixed or variable)-Payments are made during the joint lifetime of the annuitant and a joint annuitant of your selection. Payments will be made as long as either person is living.

• Life with Emergency Cash^® (fixed or variable)-Payments will be made during the joint lifetime of the annuitant and a joint annuitant of your selection. Payments will be made as long as either person is living. With the Life with Emergency Cash^® feature, you are able to surrender all or a portion of the Life with Emergency Cash^® benefit. The amount you surrender must be at least $2,500. We will provide you with a Life with Emergency Cash^® benefit schedule that will assist you in estimating the amount you have available to surrender. A partial surrender will reduce all future payments pro rata. A surrender charge may apply and there may be tax consequences (consult a tax advisor before requesting a full or partial surrender). The maximum surrender charge is 4% of the annuitized amount (see “Expenses” for the surrender charge schedule). You will be subject to whatever surrender schedule is in effect at the time you annuitize under this annuity payment option. The Life with Emergency Cash^® benefit will continue through age 100 of the surviving joint annuitant.

The Life with Emergency Cash^® benefit is also a death benefit that is paid upon the death of the surviving joint annuitant and is generally equal to the surrender value without any surrender charges. For qualified policies the death benefit ceases on the date the surviving joint annuitant reaches the IRS joint age limitation.

Other annuity payment options may be arranged by agreement with the Company. Some annuity payment options may not be available for all policies.

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NOTE CAREFULLY

IF:

• you choose Life Income with No Period Certain or a Joint and Survivor Annuity with No Period Certain; and

• the annuitant dies (or both joint annuitants die) before the due date of the second (third, fourth, etc.) annuity payment;

THEN:

• we may make only one (two, three, etc.) annuity payments.

IF:

• you choose Income for a Specified Period, Life Income with 10 Years Certain, Life Income with Guaranteed Return of Policy Proceeds, or Income of a Specified Amount; and

• the person receiving payments dies prior to the end of the guaranteed period;

THEN:

• the remaining guaranteed payments will be continued to a new payee, or their present value may be paid in a single sum.

However, IF:

• you choose Life with Emergency Cash^®; and

• the annuitant dies (if both joint annuitants die) before age 101;

THEN:

• a Life with Emergency Cash^® death benefit will be paid.

We will not pay interest on amounts represented by uncashed annuity payment checks if the postal or other delivery service is unable to deliver checks to the payee’s address of record. The person receiving payments is responsible for keeping the Company informed of his/her current address.

You must annuitize your policy no later than the maximum annuity commencement date specified in your policy (earlier for certain distribution channels).

If you do not elect an annuity payment option, the default option will be Life with 10 Years Certain option. Please note, all optional benefits (including guaranteed minimum death benefits and living benefits) terminate upon annuitization.

8. DEATH BENEFIT

We will pay a death benefit to your beneficiary, under certain circumstances, if the annuitant dies during the accumulation phase. If there is a surviving owner(s) when the annuitant dies, the surviving owner(s) will receive the death benefit instead of the listed beneficiary. The person receiving the death benefit may choose an annuity payment option, or may choose to receive a lump sum.

We will determine the amount of and pay the death benefit proceeds, if any are payable on a policy, upon receipt at our Administrative and Service Office of satisfactory proof of the annuitant’s death, written directions from each eligible recipient of death benefit proceeds regarding how to pay the death benefit, and any other documents, forms and information that we need (collectively referred to as “due proof of death”).

Please Note: Such due proof of death must be submitted in good order to avoid a delay in processing the death benefit claim.

The death benefit proceeds remain invested in the separate account in accordance with the allocations made by the policy owner until the beneficiary has provided us with due proof of death. Once the Company receives due proof of death, then investments in the separate account may be reallocated in accordance with the beneficiary’s instructions. The Company may permit the beneficiary to give a “one-time” instruction to reallocate the investments in the separate account to the money market fund after the death of the

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annuitant but before receiving due proof of death. If there is more than one beneficiary, all beneficiaries must agree to the reallocation instructions.

When We Pay A Death Benefit

We will pay a death benefit IF:

• you are both the annuitant and sole owner of the policy; and

• you die before the annuity commencement date.

We will pay a death benefit to you (owner) IF:

• you are not the annuitant; and

• the annuitant dies before the annuity commencement date.

If the only person receiving the death benefit is the surviving spouse, then he or she may elect to continue the policy as the new annuitant and owner, instead of receiving the death benefit.

When We Do Not Pay A Death Benefit

We will not pay a death benefit IF:

• you are not the annuitant; and

• you die prior to the annuity commencement date.

Please note the new owner (unless it is the deceased owner’s spouse) must generally surrender the policy within five years of your death.

Distribution requirements apply to the policy value upon the death of any owner. These distribution requirements are detailed in the SAI.

Deaths After the Annuity Commencement Date

The death benefit payable, if any, on or after the annuity commencement date depends on the annuity payment option selected.

IF:

• you are not the annuitant; and

• you die on or after the annuity commencement date; and

• the entire interest in the policy has not been paid;

THEN:

• the remaining portion of such interest in the policy will continue to be distributed at least as rapidly as under the method of distribution being used as of the date of your death.

IF:

• annuity payments are being made under the Life with Emergency Cash^®; and

• the annuitant dies before age 101 (or earlier, if a qualified policy);

THEN:

• a Life with Emergency Cash^® death benefit will be paid.

Succession of Ownership

If an owner dies during the accumulation phase, the person or entity first listed below who is alive or in existence on the date of that death will become the new owner:

• any surviving owner;

• primary beneficiary;

• contingent beneficiary; or

• owner’s estate.

Amount of Death Benefit

Death benefit provisions may differ from state to state. The death benefit may be paid as a lump sum or as annuity payments. The amount of the death benefit depends on the guaranteed minimum death benefit option, if any, you choose when you buy the policy. The “base policy” death benefit will generally be the greatest of:

• the policy value on the date we receive the required information in good order at our Administrative and Service Office;

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• the cash value on the date we receive the required information in good order at our Administrative and Service Office (this will be more than the policy value if there is a positive excess interest adjustment);

• and the guaranteed minimum death benefit (discussed below), plus premium payments (after the date of death), less adjusted partial surrenders, from the date of death to the date the death benefit is paid. Please see “Appendix - Death Benefit” for illustrative examples regarding Death Benefit calculations.

Please note, the death benefit terminates upon annuitization and there is a maximum annuity commencement date.

Guaranteed Minimum Death Benefit

NOTE: The following generally applies, depending on the state of issue, to policies issued after the date of this prospectus. See “Appendix -Policy Variations” for information about older policies.

On the policy application, you may generally choose a guaranteed minimum death benefit (age limitations may apply) for an additional fee. After the policy is issued, you cannot make an election and the death benefit cannot be changed.

Annual Step-Up Death Benefit

Under this option, on each policy anniversary prior to your 81st birthday, a new “stepped-up” death benefit is determined and becomes the guaranteed minimum death benefit for that policy year. This “step-up” death benefit is equal to:

• the largest policy value on the policy date or on any policy anniversary prior to the earlier of the annuitant’s date of death or the annuitant’s 81st birthday; plus

• any premium payments since the date of any policy anniversary with the largest policy value; minus

• any adjusted partial surrenders since the date of the policy anniversary with the largest policy value.

The Annual Step-Up Death Benefit is not available if you or the annuitant is 76 or older on the policy date. There is an extra charge for this death benefit of 0.20% annually.

Return of Premium Death Benefit

The Return of Premium Death Benefit is equal to:

• total premium payments; less

• any adjusted partial surrenders as of the date of death.

This benefit is not available if you or the annuitant is 91 or older on the policy date. The Return of Premium Death Benefit will be in effect if you do not choose another death benefit option when you purchase your policy.

Please note: You will not receive an optional guaranteed minimum death benefit if you do not choose one when you purchase your policy.

The Guaranteed Minimum Death Benefit may vary for certain policies and may not be available for all policies. This disclosure explains the material features of the Guaranteed Minimum Death Benefit. The application and operation of the Guaranteed Minimum Death Benefit are governed by the terms and conditions of the policy form and riders.

Adjusted Partial Surrender

When you request a partial surrender, your guaranteed minimum death benefit will be reduced by an amount called the adjusted partial surrender. Under certain circumstances, the adjusted partial surrender may be more than the dollar amount of

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your surrender request. This will generally be the case if the guaranteed minimum death benefit exceeds the policy value at the time of surrender. It is also possible that if a death benefit is paid after you have made a partial surrender, then the total amount paid could be less than the total premium payments. We have included a detailed explanation of this adjustment in the “Appendix - Death Benefit.” This is referred to as “adjusted partial surrender” in your policy. If you have a qualified policy, minimum required distributions rules may require you to request a partial surrender.

9. TAXES

NOTE: We have prepared the following information on federal income taxes as a general discussion of the subject. It is not intended as tax advice to any individual. No attempt is made to consider any applicable state or other income tax laws, any state and local estate or inheritance tax, or other tax consequences of ownership or receipt of distributions under the policy. You should consult your own tax adviser about your own circumstances. We have included an additional discussion regarding taxes in the SAI.

Annuity Policies in General

Deferred annuity policies are a way of setting aside money for future needs like retirement. Congress recognized how important saving for retirement is and provided special rules in the Internal Revenue Code for annuities.

Simply stated, these rules generally provide that individuals will not be taxed on the earnings, if any, on the money held in an annuity policy until taken out. This is referred to as tax deferral. When a non-natural person (e.g., corporation or certain other entities other than tax-qualified trusts) owns a nonqualified policy, the policy will generally not be treated as an annuity for tax purposes.

There are different rules as to how you will be taxed depending on how you take the money out and the type of policy-qualified or nonqualified.

You will generally not be taxed on increases in the value of your policy until a distribution occurs (either as a surrender or as annuity payments).

Qualified and Nonqualified Policies

If you purchase the policy under an individual retirement annuity, a 403(b) plan, a pension plan, or specially sponsored program, your policy is referred to as a qualified policy.

Qualified policies are issued in connection with the following:

• Individual Retirement Annuity (IRA): A traditional IRA allows individuals to make contributions, which may be deductible, to the policy. A Roth IRA also allows individuals to make contributions to the policy, but it does not allow a deduction for contributions, and distributions may be tax-free if the owner meets certain rules.

• Tax-Sheltered Annuity (403(b) Plan): A 403(b) Plan may be made available to employees of certain public school systems and tax-exempt organizations and permits contributions to the policy on a pre-tax basis. Pursuant to new tax regulations, starting January 1, 2009 the policy is not available for purchase under a 403(b) plan and we do not accept additional premiums or transfers to existing 403(b) policies. We generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders, loans or transfers you request from an existing 403(b) policy comply with applicable tax requirements before we process your request.

• Corporate Pension and Profit-Sharing and H.R. 10 Plan: Employers and self-employed individuals can establish pension or

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profit-sharing plans for their employees or themselves and make contributions to the policy on a pre-tax basis.

• Deferred Compensation Plan (457 Plan): Certain governmental and tax-exempt organizations can establish a plan to defer compensation on behalf of their employees through contributions to the policy.

There is no additional tax deferral benefit derived from placing qualified funds into a variable annuity. Features other than tax deferral should be considered in the purchase of a qualified policy. There are limits on the amount of contributions you can make to a qualified policy. Other restrictions may apply including terms of the plan in which you participate.

Optional death benefit features in some cases may exceed the greater of the premium payments or the policy value. Such a death benefit could be characterized as an incidental benefit, the amount of which is limited in any pension or profit-sharing plan or 403(b) plan. Because an optional death benefit may exceed this limitation, anyone using the policy in connection with such plans should consult their tax adviser before purchasing an optional death benefit. The Internal Revenue Service has not reviewed the policy for qualification as an IRA, and has not addressed in a ruling of general applicability whether the death benefit options and riders available, with the policy, if any, comport with IRA qualification requirements. The value of death benefit options and riders elected may need to be considered in calculating minimum required distributions.

If you purchase the policy as an individual and not under an individual retirement annuity, 403(b) plan, 457 plan, or pension or profit sharing plan, your policy is referred to as a nonqualified policy.

Surrenders-Qualified Policies Generally

There are special rules that govern qualified policies. Generally, these rules restrict:

• the amount that can be contributed to the policy during any year;

• the time when amounts can be paid from the policy; and

• the amount of any death benefit that may be allowed.

In the case of a withdrawal under a qualified policy, a pro rata portion of the amount you receive is taxable, generally based on the ratio of your “investment in the contract” to your total account balance or accrued benefit under the retirement plan. Your “investment in the contract” generally equals the amount of any non-deductible purchase payments made by you or on your behalf. In some cases, your “investment in the contract” can be zero.

In addition, a penalty tax may be assessed on amounts surrendered from the policy prior to the date you reach age 59 ¹/2, unless you meet one of the exceptions to this rule. You may also be required to begin taking minimum distributions from the policy by a certain date. The terms of the plan may limit the rights otherwise available to you under the policy. We have provided more information in the SAI.

We may make available under the policy certain guaranteed lifetime withdrawal and other optional benefits. The tax rules for qualified policies may limit the value of these optional benefits. For example, if you elect a guaranteed lifetime withdrawal benefit and your minimum required distribution amount exceeds your guaranteed withdrawal amount, you will have to withdraw more than the guaranteed withdrawal amount to avoid imposition of a 50% excise tax. It is not clear whether guaranteed lifetime withdrawal benefit payments made during the settlement phase will be taxed as withdrawals or as annuity payments. In view of this uncertainty, we will apply the non-annuity rules for determining

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minimum required distributions, meaning that a percentage of the value of all benefits under the policy will need to be withdrawn each year. The value may have to include the value of enhanced death benefits and other optional policy provisions such as the guaranteed lifetime withdrawal benefit rider itself.

If you are attempting to satisfy minimum required distribution rules through partial surrenders, the value of any enhanced death benefit or other optional rider may need to be included in calculating the amount required to be distributed.

The Internal Revenue Code generally requires that interests in a qualified policy be nonforfeitable. If your policy contains a bonus rider with a recapture, forfeiture, or “vesting” feature, it may not be consistent with those requirements. Consult a tax advisor before purchasing a bonus rider as part of a qualified policy.

You should consult your legal counsel or tax adviser if you are considering purchasing an enhanced death benefit or other optional rider, or if you are considering purchasing a policy for use with any qualified retirement plan or arrangement.

Surrenders-403(b) Policies

The rules described above for qualified policies generally apply to 403(b) policies. However, specific rules apply to surrenders from certain 403(b) policies. Partial withdrawals and surrenders can generally only be made when an owner:

• reaches age 59 ¹/2;

• leaves his/her job;

• dies;

• becomes disabled (as that term is defined in the Internal Revenue Code); or

• declares hardship. However, in the case of hardship, the owner can only surrender the premium payments and not any earnings.

Please Note: In some instances the signature of the employer may be required. For policies issued after 2008, amounts attributable to nonelective contributions may be subject to distribution restrictions specified in the employer’s section 403(b) plan.

Pursuant to new tax regulations, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders or transfers you request from a 403(b) policy comply with applicable tax requirements before we process your request. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender or transfer, you consent to the sharing of confidential information about you, the policy, and transactions under the policy and any other 403(b) policies or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.

Defaulted loans from Code Section 403(b) arrangements, and pledges and assignments of qualified policies generally are taxed in the same manner as surrenders from such policies. Please refer to the SAI for further information applicable to distributions from 403(b) policies. Please note that a defaulted loan may stop the growth on a guaranteed lifetime withdrawal benefit.

Surrenders-Nonqualified Policies

The information above describing the taxation of qualified policies does not apply to nonqualified policies. If you take a partial withdrawal or surrender (including systematic payouts and payouts under an optional feature, if any) from a nonqualified policy before the annuity commencement date, the Internal Revenue Code treats that surrender as first coming from earnings and then from your premium payments. If your policy contains an excess interest adjustment feature (also known as a market value adjustment), then your account value immediately

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before the surrender may have to be increased by any positive excess interest adjustments that result from the surrender. There is, however, no definitive guidance on the proper tax treatment of excess interest adjustments, and you may want to discuss the potential tax consequences of an excess interest adjustment with your tax advisor.

When you make a surrender you are taxed on the amount of the surrender that is earnings. If you make a surrender, you are generally taxed on the amount that your surrender proceeds exceeds the “investment in the contract,” which is generally your premiums paid (adjusted for any prior surrenders or portions thereof that were not taxable). In general, loans, pledges, and assignments are taxed in the same manner as partial withdrawals and surrenders. Different rules apply for annuity payments. See “Annuity Payments” below.

The Internal Revenue Code also provides that surrendered earnings may be subject to a penalty tax. The amount of the penalty tax is equal to 10% of the amount that is includable in income. Some surrenders will be exempt from the penalty tax. They include, among others, any amounts:

• paid on or after the taxpayer reaches age 59 ¹/2;

• paid after an owner dies;

• paid if the taxpayer becomes disabled (as that term is defined in the Internal Revenue Code);

• paid in a series of substantially equal payments made annually (or more frequently) under a lifetime annuity;

• paid under an immediate annuity; or

• which come from premium payments made prior to August 14, 1982.

If your nonqualified policy contains a guaranteed lifetime withdrawal benefit rider, certain rules may apply. It is not clear whether guaranteed lifetime withdrawal benefit payments made during the settlement or income (payout) phase may be taxed as either withdrawals or annuities. In view of this uncertainty, we intend to adopt a conservative approach and treat guaranteed lifetime withdrawal payments during the settlement phase under nonqualified policies as withdrawals. Consult a tax advisor before purchasing a guaranteed lifetime withdrawal benefit rider or option.

All nonqualified deferred annuity policies that are issued by us (or our affiliates) to the same owner during any calendar year are treated as one annuity for purposes of determining the amount includable in the owner’s income when a taxable distribution occurs.

Taxation of Death Benefit Proceeds

Amounts may be distributed from the policy because of the death of the annuitant. Generally, such amounts should be includable in the income of the recipient:

• if distributed in a lump sum, these amounts are taxed in the same manner as a surrender; or

• if distributed under an annuity payment option, these amounts are taxed in the same manner as annuity payments.

Annuity Payments

Although the tax consequences may vary depending on the annuity payment option you select, in general, for nonqualified and certain qualified policies, only a portion of the annuity payments you receive will be includable in your gross income.

In general, the excludable portion of each annuity payment you receive will be determined as follows:

• Fixed payments-by dividing the “investment in the contract” on the annuity commencement date by the total expected value of the annuity payments for the term of the payments. This is the percentage of each annuity payment that is excludable.

• Variable payments-by dividing the “investment in the contract” on the annuity commencement

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date by the total number of expected periodic payments. This is the amount of each annuity payment that is excludable.

The remainder of each annuity payment is includable in gross income. Once the “investment in the contract” has been fully recovered, the full amount of any additional annuity payments is includable in gross income and taxed as ordinary income.

If you select more than one annuity payment option, special rules govern the allocation of the policy’s entire “investment in the contract” to each such option, for purposes of determining the excludable amount of each payment received under that option. We advise you to consult a competent tax adviser as to the potential tax effects of allocating amounts to any particular annuity payment option.

If, after the annuity commencement date, annuity payments stop because an annuitant died, the excess (if any) of the “investment in the contract” as of the annuity commencement date over the aggregate amount of annuity payments received that was excluded from gross income may possibly be allowable as a deduction in your tax return.

You should consult a tax advisor before electing the Initial Payment Guarantee or a feature with stabilized payments.

Partial Annuitization

Under a new tax provision enacted in 2010, if part of an annuity policy’s value is applied to an annuity option that provides payments for one or more lives and for a period of at least ten years, those payments may be taxed as annuity payments instead of withdrawals. None of the payment options under the policy is intended to qualify for this “partial annuitization” treatment and, if you apply only part of the value of the policy to a payment option, we will treat those payments as withdrawals for tax purposes.

Medicare Tax

Beginning in 2013, distributions from nonqualified annuity policies will be considered “investment income” for purposes of the newly enacted Medicare tax on investment income. Thus, in certain circumstances, a 3.8% tax may be applied to some or all of the taxable portion of distributions (e.g. earnings) to individuals whose income exceeds certain threshold amounts ($200,000 for filing single, $250,000 for married filing jointly and $125,000 for married filing separately). Please consult a tax advisor for more information.

Diversification and Distribution Requirements

The Internal Revenue Code provides that the underlying investments for a variable annuity must satisfy certain diversification requirements in order to be treated as an annuity. The policy must also meet certain distribution requirements at the death of an owner in order to be treated as an annuity. These diversification and distribution requirements are discussed in the SAI. We may modify the policy to attempt to maintain favorable tax treatment.

Federal Defense of Marriage Act

The Federal Defense of Marriage Act currently does not recognize same-sex marriages or civil unions, even those that are permitted under individual state laws. Therefore, exercise of the spousal continuation provisions of this policy by persons who do not meet the definition “spouse” under federal law—e.g., civil union partners or same-sex marriage spouses—may have adverse tax consequences. Consult a tax advisor for more information on this subject.

Federal Estate Taxes

While no attempt is being made to discuss the Federal estate tax implications of the Policy, a purchaser should keep in mind that the value of an annuity policy owned by a decedent and payable to a

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beneficiary by virtue of surviving the decedent is included in the decedent’s gross estate. Depending on the terms of the annuity policy, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning advisor for more information.

Generation-Skipping Transfer Tax

Under certain circumstances, the Internal Revenue Code may impose a “generation skipping transfer tax” when all or part of an annuity policy is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Owner. Regulations issued under the Internal Revenue Code may require us to deduct the tax from your policy, or from any applicable payment, and pay it directly to the IRS.

Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “2010 Act”) increases the federal estate tax exemption to $5,000,000 and reduces the federal estate tax rate to 35%; increases the Federal gift tax exemption to $5,000,000 and retains the federal gift tax rate at 35%; and increases the generation-skipping transfer tax exemption to $5,000,000 and reduces the generation-skipping transfer tax rate to 35%. Commencing in 2012, these exemption amounts will be indexed for inflation.

The estate, gift, and generation-skipping transfer provisions of the 2010 Act are only effective until December 31, 2012; thereafter, the provisions will sunset, and the federal estate, gift and generation-skipping transfer taxes will return to their pre-2001 levels, resulting in significantly lower exemptions and significantly higher tax rates. Between now and the end of 2012, Congress may make these provisions of the 2010 Act permanent, or they may do nothing and allow these 2010 Act provisions to sunset, or they may alter the exemptions and/or applicable tax rates.

The uncertainty as to how the current law might be modified in coming years underscores the importance of seeking guidance from a qualified adviser to help ensure that your estate plan adequately addresses your needs and that of your beneficiaries under all possible scenarios.

Annuity Purchases by Residents of Puerto Rico

The Internal Revenue Service recently announced that income received by residents of Puerto Rico under life insurance or annuity policies issued by a Puerto Rico branch of a United States life insurance company is U.S.-source income that is generally subject to United States federal income tax.

Annuity Policies Purchased by Nonresident Aliens and Foreign Corporations

The discussion above provided general information (but not tax advice) regarding U.S. federal income tax consequences to annuity owners that are U.S. persons. Taxable distributions made to owners who are not U.S. persons will generally be subject to U.S. federal income tax withholding at a 30% rate, unless a lower treaty rate applies. In addition, distributions may be subject to state and/or municipal taxes and taxes that may be imposed by the owner’s country of citizenship or residence. Prospective foreign owners are advised to consult with a qualified tax adviser regarding U.S., state, and foreign taxation for any annuity policy purchase.

Transfers, Assignments or Exchanges of Policies

A transfer of ownership or assignment of a policy, the designation of an annuitant or payee or other beneficiary who is not also the owner, the selection of certain annuity commencement dates, the exchange

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of a policy and certain other transactions, or a change of annuitant other than the owner, may result in certain income or gift tax consequences to the owner that are beyond the scope of this discussion. An owner contemplating any such transfer, assignment, selection, exchange or change should contact a competent tax adviser with respect to the potential tax effects of such a transaction.

Possible Tax Law Changes

Although the likelihood of legislative or regulatory changes is uncertain, there is always the possibility that the tax treatment of the policy could change by legislation, regulation, or otherwise. You should consult a tax adviser with respect to legal or regulatory developments and their effect on the policy.

We have the right to modify the policy to meet the requirements of any applicable laws or regulations, including legislative changes that could otherwise diminish the favorable tax treatment that annuity policy owners currently receive.

Separate Account Charges

It is possible that the Internal Revenue Service may take a position that fees for certain optional benefits (e.g., death benefits other than the Return of Premium death benefit) are deemed to be taxable distributions to you. In particular, the Internal Revenue Service may treat fees associated with certain optional benefits as a taxable surrender, which might also be subject to a tax penalty if the surrender occurs prior to age 59 ¹/2. Although we do not believe that the fees associated with any optional benefit provided under the policy should be treated as taxable surrenders, the tax rules associated with these benefits are unclear, and we advise that you consult your tax advisor prior to selecting any optional benefit under the policy.

Foreign Tax Credits

We may benefit from any foreign tax credits attributable to taxes paid by certain underlying funds to foreign jurisdictions to the extent permitted under federal tax law.

Guaranteed Lifetime Withdrawal Benefits

We may make available, as options under the policy, certain guaranteed lifetime withdrawal and other optional benefits. If your policy contains a guaranteed lifetime withdrawal benefit rider the application of certain tax rules, particularly those rules relating to distributions from your policy, are not entirely clear. The tax rules for qualified policies may limit the value of these optional benefits. In view of this uncertainty, you should consult a tax advisor before purchasing a guaranteed lifetime withdrawal benefit rider for a qualified policy.

10. ADDITIONAL FEATURES

Systematic Payout Option

You can select at any time (during the accumulation phase) to receive regular withdrawals (i.e., partial surrenders) from your policy by using the Systematic Payout Option. Under this option, you can receive the greater of (1) or (2), divided by the number of withdrawals made per year, where: (1) up to 10% of your premium payments (reduced by prior withdrawals in that policy year); and (2) is any gains in the policy. For amounts greater than 10% of your premium payments, you must receive prior Company approval.

Any payment in excess of the cumulative interest credited at the time of the payment may be subject to an excess interest adjustment.

Systematic withdrawals can be made monthly, quarterly, semi-annually, or annually. Each withdrawal must be at least $50. Monthly and

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quarterly withdrawals must generally be made by electronic funds transfer directly to your checking or savings account.

If you request an additional withdrawal while a Systematic Payout Option is in effect, then the Systematic Payout Option will terminate.

Keep in mind that partial withdrawals under the Systematic Payout Option may be taxable, and if made before age 59 ¹/2, may be subject to a 10% federal penalty tax.

Please note, if you elect certain features (e.g. living benefit riders) your Systematic Payout Option may be different for the first year.

There is no charge for this benefit.

Income Benefit Programs

The Family Income Protector and Managed Annuity Programs are no longer available for new sales, but if you have previously elected one of these benefits you can still upgrade. If you upgrade your minimum annuitization value or minimum income base, you will generally receive the Managed Annuity Program II.

Initial Payment Guarantee

You may only elect to purchase the Initial Payment Guarantee at the time you annuitize your policy. You cannot terminate this payment guarantee (or eliminate the charge for it) after you have elected it. The guarantee only applies to variable annuity payments. There is an additional charge for this guarantee.

The Initial Payment Guarantee does not establish or guarantee the performance of any subaccount.

Under the Initial Payment Guarantee, you receive annuity payments that are stabilized—that is, held level throughout each policy year—and are guaranteed to never be less than a percentage of the initial payment. The guaranteed percentage is subject to change from time to time; however once you annuitize, the guaranteed percentage will not change during the life of the Initial Payment Guarantee. Contact us for the current guaranteed percentage.

The payment amount is adjusted once each year (on the anniversary of your annuity commencement date) to reflect the investment performance of your selected investment choice(s) over the preceding year (but your payment will not be less than the guaranteed minimum).

Fee. There is a charge for the Initial Payment Guarantee, which is in addition to the base product mortality and expense risk fee and administrative charge. This fee is reflected in the amount of the annuity payments that you receive if you select the Initial Payment Guarantee. It is reflected in the calculation of the annuity unit values.

The Initial Payment Guarantee fee is currently equal to an annual rate of 1.25% of the daily net asset value in the subaccounts. We can change the fee, and you pay whatever the fee is when you annuitize.

Other Terms and Conditions. The Initial Payment Guarantee uses a 5% assumed investment return to calculate your annuity payments. This means that the dollar amount of the annuity payments will remain level if the investment return (net of fees and expenses) exactly equals 5%. The payments will increase if actual investment performance (net of fees and expenses) exceeds the assumed investment return, and decrease if actual performance is below the assumed investment return (but not below the guaranteed level).

Termination. The Initial Payment Guarantee is irrevocable.

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The Initial Payment Guarantee may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Initial Payment Guarantee. The application and operation of the Initial Payment Guarantee are governed by the terms and conditions of the policy itself.

Additional Death Distribution

The optional Additional Death Distribution rider pays an additional amount (based on earnings, if any, since the rider was issued) when a death benefit is payable during the accumulation phase under your policy, in certain circumstances. The Additional Death Distribution is only available for issue ages through age 80.

Additional Death Distribution Benefit Amount. The Additional Death Distribution is payable only if you elected the rider prior to the death triggering the payment of the policy death benefit and a death benefit is payable under the policy. The Additional Death Distribution is equal to:

• the Additional Death Distribution factor (see below); multiplied by

• the rider earnings, if any, on the date the death benefit is calculated.

Rider earnings equal:

• the policy value on the date the death benefit is determined; minus

• policy value on the rider date; minus

• premium payments after the rider date; plus

• surrenders after the rider date that exceed the rider earnings on the date of the surrender.

No benefit is payable under the Additional Death Distribution rider if there are no rider earnings on the date the death benefit is calculated.

If you purchase your policy as part of a 1035 exchange or add the Additional Death Distribution rider after you purchase the policy, rider earnings do not include any gains before the 1035 exchange or the date the Additional Death Distribution is added to your policy.

The Additional Death Distribution factor is currently 40% for issue ages under 71 and 25% for issue ages 71-80, based on the annuitant’s age.

No benefit is paid under the rider unless (a) the rider is in force, (b) a death benefit is payable on the policy, and (c) there are rider earnings when the death benefit is calculated.

For purposes of computing taxable gains, both the death benefit payable under the policy and the Additional Death Distribution will be considered.

Please see “Appendix – Additional Death Distribution—Additional Information” for an example which illustrates the Additional Death Distribution payable as well as the effect of a partial surrender on the Additional Death Distribution benefit amount.

Spousal Continuation. If a spouse, as the new owner of the policy, elects to continue the policy instead of receiving a death benefit and Additional Death Distribution, the spouse will receive a one-time policy value increase equal to the Additional Death Distribution. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider through age 80. Please note that under federal tax law, upon the death of an owner, only a “spouse” as defined under the Federal Defense of Marriage Act is permitted to continue a policy without taking required distributions. (The payment of a death benefit under the policy is triggered by the death of the annuitant.)

Rider Fee. A rider fee, 0.25% of the policy value, is deducted annually on each rider anniversary prior to annuitization. We will also deduct this fee upon full surrender of the policy or other termination of the rider. The rider fee is deducted pro rata from each

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investment choice. The fee is deducted even during periods when the Additional Death Distribution would not pay any benefit (because there are no rider earnings).

Termination. The rider will remain in effect until:

• you cancel it by notifying our Administrative and Service Office in writing,

• the policy is annuitized or surrendered, or

• the Additional Death Distribution is paid or added to the policy value under a spousal continuation.

Once terminated, the Additional Death Distribution may be re-elected; however, a new rider will be issued and the additional death benefit will be re-determined. Please note that if the rider is terminated and then re-elected, it will only cover gains, if any, since it was re-elected and the terms of the new rider may be different than the terminated rider.

The tax consequences associated with this rider are not clear. This rider may violate the requirements of certain qualified plans and IRAs. Consult a tax advisor before electing this rider for any qualified plan or IRA.

Please note: This feature terminates upon annuitization and there is a mandatory annuitization date.

The Additional Death Distribution may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Additional Death Distribution. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Additional Death Distribution+

The optional Additional Death Distribution+ rider pays an additional death benefit amount when a death benefit is payable during the accumultion phase under your policy, in certain circumstances. The Additional Death Distribution+ is only available for issue ages through age 75.

Additional Death Distribution+ Benefit Amount. An additional death benefit is only payable if a death benefit is paid on the base policy to which the rider is attached. The amount of the additional benefit is dependent on the amount of time that has passed since the rider date as follows:

• If a death benefit is payable within the first five years after the rider date, the additional benefit amount will be equal to the sum of all rider fees paid since the rider date.

• If a death benefit is payable after five years following the rider date, the additional benefit will be equal to the rider benefit base multiplied by the rider benefit percentage.

The rider benefit base at any time is equal to the policy value less any premiums added after the rider date.

The rider benefit percentage may vary but currently equals 30% for issue ages 0 - 70 and 20% for issue ages 71 - 75, based on the annuitant’s age.

No benefit is payable under the Additional Death Distribution+ if the policy value on the date the death benefit is paid is less than the premium payments after the rider date.

For purposes of computing taxable gains, both the death benefit payable under the policy and the additional benefit will be considered.

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Please see “Appendix – Additional Death Distribution+—Additional Information” for an example that illustrates the additional death benefit payable as well as the effect of a partial surrender on the Additional Death Distribution+ benefit amount.

Spousal Continuation. If a spouse, as the new owner of the policy, elects to continue the policy instead of receiving the death benefit and Additional Death Distribution+, then the spouse will receive a one-time policy value increase equal to the Additional Death Distribution+. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider through age 75. Please note that under federal tax law, upon the death of an owner, only a “spouse” as defined under the Federal Defense of Marriage Act is permitted to continue a policy without taking required distributions. (The payment of a death benefit under the policy is triggered by the death of the annuitant.)

Rider Fee. A rider fee, currently 0.55% of the policy value, is deducted annually on each rider anniversary prior to annuitization. We will also deduct this fee upon full surrender of the policy or other termination of the rider.

Please note: the rider fee is deducted pro rata from each investment choice. The fee is deducted even during periods when the rider would not pay any benefits.

Termination. The rider will remain in effect until:

• you cancel it by notifying our Administrative and Service Office in writing in good order,

• the policy is annuitized or surrendered, or

• the additional death benefit is paid or added to the policy value under a spousal continuation.

Once terminated, the Additional Death Distribution+ may not be re-elected for one year.

The tax consequences associated with this rider are not clear. This rider may violate the requirements of certain qualified plans and IRAs. Consult a tax adviser before electing this rider for any qualified plan or IRA.

Please note: This feature terminates upon annuitization and there is a maximum annuiity commencement date.

The Additional Death Distribution+ may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Additional Death Distribution+. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Nursing Care and Terminal Condition Withdrawal Option

No excess interst adjustment will apply if you make a surrender ($1,000 minimum), under certain circumstances, because you or your spouse has been:

• confined in a hospital or nursing facility for 30 days in a row after the policy issue date; or

• diagnosed with a terminal condition after the policy issue date (usually a life expectancy of 12 months or less).

This benefit is also available to the annuitant or annuitant’s spouse if the owner is not a natural person.

You may exercise this benefit at any time (during the accumulation phase). There is no charge for this benefit.

There is no restriction on the maximum amount you may surrender under this benefit.

This benefit may vary for certain policies, may not be available for all policies, and may not be available in all states.

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Unemployment Waiver

No excess interst adjustment will apply to surrenders after you or your spouse become unemployed in certain circumstances, because you were terminated, laid off, or otherwise lost your job involuntarily. In order to qualify, you (or your spouse, whichever is applicable) must have been:

• employed full time for at least two years prior to becoming unemployed;

• employed full time on the policy date;

• unemployed for at least 60 days in a row at the time of surrender;

• must have a minimum cash value at the time of surrender of $5,000; and

• you (or your spouse) must be receiving unemployment benefits.

You must provide written proof from your State’s Department of Labor, which verifies that you qualify for and are receiving unemployment benefits at the time of surrender.

You may select this benefit at any time (during the accumulation phase) and there is no charge for this benefit.

This benefit is also available to the annuitant or annuitant’s spouse if the owner is not a natural person. There is no charge for this benefit.

There is no restricion on the maximum amount you may surrender under this benefit.

This benefit may vary for certain policies, may not be available for all policies, and may not be available in all states.

Telephone Transactions

You may generally make certain transactions by telephone upon our receipt of the appropriate authorization.

You will be required to provide certain information for identification purposes when requesting a transaction by telephone and we may record your telephone call. We may also require written confirmation of your request. We will not be liable for losses resulting from telephone requests that we believe are genuine. We reserve the right to revoke your telephone transaction privileges at any time without revoking all owners’ telephone transfer privileges.

Telephone requests must be received while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. We may discontinue this option at any time.

We may deny the telephone transaction privileges to market timers and frequent or disruptive traders.

We cannot guarantee that telephone transactions will always be available. For example, our offices may be closed during severe circumstances or other emergencies. There may be interruptions in service beyond our control, and if the volume of calls is unusually high, we might not have anyone available, or lines available, to take your call. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability in all circumstances.

Dollar Cost Averaging Program

During the accumulation phase, you may instruct us to automatically make transfers into one or more variable subaccounts in accordance with your allocation instructions. This is known as Dollar Cost Averaging. While Dollar Cost Averaging buys more accumulation units when prices are low and fewer accumulation units when prices are high, it does not guarantee profits or assure that you will not experience a loss.

There are two Dollar Cost Averaging programs available under your policy:

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• Traditional—You may specify the dollar amount to be transferred or the number of transfers. Transfers will begin as soon as the program is started.

• Special—You may only elect either a six or twelve month program. Transfers will begin as soon as the program is started. You cannot transfer from another investment choice into a Special Dollar Cost Averaging program. This program is only available for new premium, requires transfers from a fixed source, and may credit a higher or lower interest rate than a traditional program.

A minimum of $500 per transfer is required. A minimum of $3,000 is required to start a 6-month program and $6,000 is required to start a 12-month program. The minimum number of transfers is 6 monthly or 4 quarterly, and the maximum is 24 monthly or 8 quarterly.

You can elect to transfer from one of the fixed or variable sources listed on the Dollar Cost Averaging election form (only fixed sources are available for special Dollar Cost Averaging programs).

A Dollar Cost Averaging program will begin once we have received in good order all necessary information and the minimum required amount. Please note: Dollar Cost Averaging programs will not begin on the 29th, 30th, or 31st. If a program would have started on one of those dates, it will start on the 1st business day of the following month. If we receive additional premium payments while a Dollar Cost Averaging program is running, absent new instructions to the contrary, the amount of the Dollar Cost Averaging transfers will increase, but the length of the Dollar Cost Averaging program will not.

NOTE CAREFULLY:

IF:

• we do not receive all necessary information to begin an initial Dollar Cost Averaging program within 30 days of allocating the minimum required amount to a Dollar Cost Averaging program; or

• we do not receive the minimum required amount to begin an initial Dollar Cost Averaging program within 30 days of allocating an insufficient amount;

THEN:

• any amount in a fixed source will be transferred to the money market investment choice; and

• any amount in a variable source will remain in that variable investment choice; and

• new instructions will be required to begin a Dollar Cost Averaging program.

IF:

• we receive additional premium payments after a Dollar Cost Averaging program is completed and the additional premium meets the minimum requirements to start a Dollar Cost Averaging program;

THEN:

• we will, absent new instructions to the contrary, start a new Dollar Cost Averaging program using the previous instructions.

IF:

• we receive additional premium payments after a Dollar Cost Averaging program is completed, and the additional premium does not meet the minimum requirements to start a Dollar Cost Averaging program;

THEN:

• we will, absent new instructions to the contrary, allocate the additional premium as identified in the previous Dollar Cost Averaging program.

IF:

• you discontinue a Dollar Cost Averaging program before its completion;

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THEN:

• we will, absent new instructions to the contrary, transfer any remaining balance directly into the subaccounts in the Dollar Cost Averaging instructions.

You should consider your ability to continue a Dollar Cost Averaging program during all economic conditions.

There is no charge for this benefit.

The Dollar Cost Averaging Program may vary for certain policies, may not be available for all policies, and may not be available in all states. See your policy for availability of the fixed account options.

Asset Rebalancing

During the accumulation phase you can instruct us to automatically rebalance the amounts in your subaccounts to maintain your desired asset allocation. This feature is called Asset Rebalancing and can be started and stopped at any time. However, we will not rebalance if you are in the Dollar Cost Averaging program or if any other transfer is requested. If a transfer is requested, we will honor the requested transfer and discontinue Asset Rebalancing. New instructions are required to start Asset Rebalancing. Asset Rebalancing ignores amounts in the fixed account. You can choose to rebalance monthly, quarterly, semi-annually, or annually.

There is no charge for this benefit.

Guaranteed Lifetime Withdrawal Benefits

You may elect one of the following optional riders under the policy that offers guaranteed lifetime withdrawal benefits – the Living Benefits Rider, the Retirement Income Choice^® 1.2 Rider, the Income Link^® Rider or the Retirement Income Max^SM Rider. Important aspects of each of these riders are summarized in the “Appendix - Guaranteed Lifetime Withdrawal benefit Comparison Table” and are described in more detail below. You should consult with tax and financial professionals to determine which of these riders is appropriate for you.

The following benefits are no longer available for new sales, but if you have previously elected one of these riders you can still upgrade:

• 5 for Life Rider

• 5 for Life with Growth Rider

• Income Select for Life Rider

• Retirement Income Choice^® Rider

• Retirement Income Choice^® with Double Withdrawal Base Benefit Rider

• Retirement Income Choice^® 1.4 Rider

Living Benefits Rider

You may elect to purchase the optional Living Benefits Rider which provides you with a guaranteed minimum accumulation benefit and a guaranteed minimum withdrawal benefit. The Living Benefits Rider is only available during the accumulation phase. The Living Benefits Rider is only available for annuitant issue ages through age 80. The maximum issue age may be lower if required by state law.

You should view the Living Benefits Rider as a way to permit you to invest in variable investment choices while still having your policy value and liquidity protected to the extent provided by the Living Benefits Rider.

Please note:

• Certain protections under the rider are available only if you hold the rider for ten years.

• If you elect the rider, we will monitor your policy value and we may transfer amounts back and forth between specified investment choices under the policy (including guaranteed period options in the fixed account) and the variable investment choices you choose, according to a mathematical model that we will use to assist us

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in managing portfolio risk and supporting the guarantees under the rider. See “Portfolio Allocation Method” below.

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider for you to take withdrawals each rider year that are less than or equal to the maximum annual withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the maximum annual withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• Because the guaranteed minimum withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the maximum annual withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take the maximum advantage of the tax deferral aspect of the policy.

• The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Living Benefits Rider for a qualified policy.

• Any such transfers out of a guaranteed period option may be subject to an excess interest adjustment. We intend to include among the specified investment choices fixed account options to which excess interest adjustments do not apply. (See “Portfolio Allocation Method,” below.)

Guaranteed Minimum Accumulation Benefit

If you elect the Living Benefits Rider, we will provide a guaranteed future value. This benefit is intended to provide a level of protection regardless of the performance of the variable investment choices you select.

Guaranteed Future Value. We guarantee that, on the guaranteed future value date (ten years after you elect the rider), your policy value will at least equal your guaranteed future value. The guaranteed future value on the rider date (i.e., the date the rider is added to the policy) is the policy value (less any premium enhancements if the rider is added in the first policy year). After the rider date and before the guaranteed future value date, the guaranteed future value is equal to:

• the guaranteed future value on the rider date; plus

• a percentage of subsequent premium payments (as described below); less

• subsequent adjusted partial withdrawals (as described below).

After the guaranteed future value date, the guaranteed future value equals zero.

Subsequent Premium Payments. The percentage of subsequent premium payments that will be added to the guaranteed future value is as follows:

Rider Year	Percent of subsequent premium payments added to guaranteed future value
1	100%
2	90%
3	80%
4	70%
5	60%
6	50%
7	50%
8	50%
9	50%
10	0%

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Guaranteed Future Value Adjusted Partial Withdrawals. If you take a partial withdrawal, it will reduce your guaranteed future value. The amount of the reduction is referred to as the adjusted partial withdrawal amount, which will be equal to the greater of:

• the guaranteed future value immediately prior to the withdrawal multiplied by the percentage reduction in the policy value resulting from the gross partial withdrawal; or

• the gross partial withdrawal amount.

(The gross partial withdrawal amount is the amount you request, plus any excess interest adjustment that may be applicable.)

In other words, if your policy value is greater than the guaranteed future value at the time you make a partial withdrawal, then your guaranteed future value is reduced by the same amount we reduce your policy value. However, if your policy value is less than the guaranteed future value at the time you make a partial withdrawal, then your guaranteed future value will be reduced by more than the amount we reduce your policy value.

See the “Appendix—Living Benefits Rider Adjusted Partial Withdrawals” to this prospectus for examples showing the effect of hypothetical withdrawals in more detail, including withdrawals that reduce the guaranteed future value by more than the amount of the gross partial withdrawal.

Guaranteed Minimum Accumulation Benefit. On the guaranteed future value date (ten years after you elect the rider), if the policy value is less than the guaranteed future value, we will add an amount equal to the difference to your policy value. After the guaranteed future value date, the guaranteed minimum accumulation benefit will terminate.

Example. Assume you make a single premium payment of $100,000 and you do not make any withdrawals or additional premium payments. If, on the guaranteed future value date, your policy value has declined to $90,000 because of negative investment performance, then we will add $10,000 ($100,000 – $90,000) to your policy value.

Please note: You do not have any protection under the guaranteed minimum accumulation benefit unless you hold the policy with the rider for ten years. If you think that you may terminate the policy or elect to start receiving annuity payments (or if you must begin taking required minimum distributions) before the guaranteed future value date, electing the rider may not be in your best interests.

Guaranteed Minimum Withdrawal Benefit

If you elect the Living Benefits Rider, (first as withdrawals from your policy value or, if necessary, as payments from us) we will provide a maximum annual withdrawal amount regardless of your policy value. This benefit is intended to provide a level of benefits regardless of the performance of the variable investment choices you select.

Withdrawal Guarantees. We account for the withdrawals you take under the rider by applying two different withdrawal guarantees:

• “principal back,” for withdrawals of up to 7% of your total withdrawal base.

• “for life,” for withdrawals of up to 5% of your total withdrawal base.

When you make a withdrawal, you do not need to specify it as being under either withdrawal guarantee. Any withdrawals that you take while the rider is in effect could have different impacts under each of the withdrawal guarantees - on your maximum annual withdrawal amount, on your total withdrawal base, and on your minimum remaining withdrawal amount. For example, withdrawals that are compliant with the “principal back” maximum withdrawal amount could result in excess withdrawals under the “for life” withdrawal guarantee and, consequently, would reduce the maximum annual withdrawal

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amount, the total withdrawal base, and the minimum remaining withdrawal amount under the “for life” withdrawal guarantee. (See “Adjusted Partial Withdrawals” below.)

Your ability to change the frequency or amount of your withdrawals ceases if your policy value reaches zero.

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion. See “Appendix - Living Benefits Rider Adjusted Partial Withdrawals,” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the total withdrawal base by a pro rata amount.

Please note:

• Any amount withdrawn in a rider year (including any excess interest adjustment) in excess of the maximum withdrawal amount is an excess withdrawal.

• The amount of your excess withdrawal will impact the maximum annual withdrawal amount, total withdrawal base, and minimum remaining withdrawal amount under each guarantee on a greater than dollar-for-dollar basis. (See “Maximum Annual Withdrawal Benefit,” “Total Withdrawal Base,” and “Minimum Remaining Withdrawal Amount,” below.)

Withdrawals under the guaranteed minimum withdrawal benefit also:

• reduce your policy value;

• reduce your death benefit and other benefits;

• may be subject to any excess interest adjustment; and

• may be subject to income taxes and federal tax penalties (See “Section 9. Taxes”).

Maximum Annual Withdrawal Amount. Under this benefit:

• you can withdraw up to 7% of your “principal back” total withdrawal base each rider year until your “principal back” minimum remaining withdrawal amount reaches zero;

Example. Assume you make a single premium payment of $100,000 and that you do not make any withdrawals or additional premium payments. Assume that after five years, your policy value has declined to $70,000 solely because of negative investment performance. You could still receive up to $7,000 (7% of $100,000) each rider year for the next fourteen years and $2,000 in the year immediately thereafter so you would get back your full $100,000 (assuming that you do not withdraw more than $7,000 in any one rider year).

• or, you can withdraw up to 5% of your “for life” total withdrawal base each rider year starting with the rider anniversary immediately following the annuitant’s 59th birthday and lasting until the annuitant’s death, unless your “for life” minimum remaining withdrawal amount reaches zero because of “excess withdrawals” (see “Adjusted Partial Withdrawals,” below). A penalty tax may be assessed on amounts surrendered from the policy before the annuitant reaches age 59 ¹/2.

Example. Assume you are the owner and annuitant and you make a single premium payment of $100,000 when you are 55 years old. Assume you do not make any withdrawals or additional premium payments. Assume that after five years, your policy value has declined to $70,000 solely because of negative investment performance. You could still receive up to $5,000 (5% of $100,000) each rider year for the rest of your life (assuming that you do not withdraw more than $5,000 in any one rider year).

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You can receive up to the maximum annual withdrawal amount each rider year (first as withdrawals from your policy value and, if necessary, as payments from us) under this rider regardless of your policy value; however, once your policy value reaches zero you cannot make premium payments, and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to continue withdrawals under this rider after your policy value reaches zero, you must select an amount and frequency of future withdrawals. Once selected, the amount and frequency of future withdrawals after your policy value reaches zero cannot be changed.

Please note:

• Withdrawals under the 5% “for life” guarantee cannot begin until after the rider anniversary following the annuitant’s 59th birthday.

• Any withdrawal before the rider anniversary following the annuitant’s 59th birthday will reduce the benefits under the 5% “for life” guarantee.

• The maximum annual withdrawal amounts described above (the 7% “principal back” and 5% “for life”) are based on rider years, not calendar or policy years (if different from rider years).

• You cannot carry over any portion of your maximum annual withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if you do not take the maximum annual withdrawal amount during a rider year, you cannot take more than the maximum annual withdrawal amount in the next rider year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

• If you have a qualified policy, minimum required distribution rules may force you to take excess withdrawals to avoid the imposition of a 50% excise tax. Further, some qualified policies have withdrawal restrictions that may (with limited exceptions) prevent you from taking withdrawals before age 59 ¹/2 .You should consult a tax advisor before purchasing this rider with a qualified policy.

Total Withdrawal Base. We use the total withdrawal base to calculate the maximum annual withdrawal amount. The total withdrawal base on the rider date is the policy value (less any premium enhancements if the rider is added in the first policy year). After the rider date, the total withdrawal base is equal to:

• the total withdrawal base on the rider date; plus

• subsequent premium payments; less

• subsequent adjusted partial withdrawals (as described below).

We will calculate separate total withdrawal bases for the “principal back” and “for life” guarantees.

Please note: We determine the total withdrawal base solely to calculate the maximum annual withdrawal amount. Your total withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

Minimum Remaining Withdrawal Amount. The minimum remaining withdrawal amount represents the total amount of guaranteed withdrawals still available under the rider. The minimum remaining withdrawal amount on the rider date is the policy value (less any premium enhancements if the rider is added in the first policy year). After the rider date, the minimum remaining withdrawal amount is equal to:

• the minimum remaining withdrawal amount on the rider date; plus

• subsequent premium payments; less

• subsequent adjusted partial withdrawals (as described below).

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We will calculate separate minimum remaining withdrawal amounts for the “principal back” and “for life” guarantees.

Adjusted Partial Withdrawals. Each rider year, for each withdrawal guarantee (i.e., “principal back” and “for life”), gross partial withdrawals (the amount that you request be withdrawn, plus any excess interest adjustment that may be applicable) up to the maximum annual withdrawal amount for that withdrawal guarantee, will reduce the minimum remaining withdrawal amount for that withdrawal guarantee on a dollar-for-dollar basis, but will not reduce the total withdrawal base for that withdrawal guarantee. For each withdrawal guarantee, gross partial withdrawals in excess of the maximum annual withdrawal amount for that withdrawal guarantee will reduce the total withdrawal base and minimum remaining withdrawal amount for that withdrawal guarantee by a pro rata amount (possibly to zero). See “Appendix - Living Benefits Rider Adjusted Partial Withdrawals,” which provides examples showing the effect of a withdrawal. Excess withdrawals may cause you to lose the withdrawal guarantees under this rider.

Please note: Gross partial withdrawals that are compliant with the “principal back” withdrawal guarantee (i.e., withdrawals of the “principal back” maximum annual withdrawal amount) and any partial withdrawal before the rider anniversary following the annuitant’s 59th birthday, will result in an excess partial withdrawal under the “for life” guarantee, and will reduce the “for life” maximum annual withdrawal amount, the “for life” total withdrawal base, and the “for life” minimum remaining withdrawal amount. Such reduction may be on a greater than dollar-for-dollar basis.

Rider Fee. A rider fee, 0.90% of the “principal back” total withdrawal base on each rider anniversary, is charged annually before annuitization. We will also deduct the rider fee upon full surrender of the policy or other termination of the rider. The rider fee is deducted from each investment choice in proportion to the amount of policy value in each investment choice. Generally, the rider fee is deducted regardless of your values (i.e., even if your policy value exceeds your total withdrawal base).

We will continue to calculate the rider fee using the “principal back” total withdrawal base even after the “principal back” minimum remaining withdrawal amount reaches zero. The “principal back” total withdrawal base is always greater than or equal to the “for life” total withdrawal base.

Please note: Because the rider fee is a percentage of your “principal back” total withdrawal base on each rider anniversary, the fee can be substantially more than 0.90% of your policy value if that total withdrawal base is higher than your policy value.

Portfolio Allocation Method

If you elect the Living Benefits Rider, the Portfolio Allocation Method (“PAM”) will automatically be in effect. PAM is designed to help manage portfolio risk and support the guarantees under the Living Benefits Rider. Using PAM, we will monitor your policy value and may transfer amounts back and forth between the PAM Transamerica AEGON U.S. Government Securities VP—Service Class subaccount (which invests in the Transamerica AEGON U.S. Government Securities VP—Service Class portfolio of the Transamerica Series Trust) or certain guaranteed period options of the fixed account (each a “PAM investment choice” and collectively, the “PAM investment choices”) and the variable investment choices you choose. You should read the underlying fund prospectus for the variable PAM investment choice(s) carefully before you elect the Living Benefits Rider. We will transfer amounts from your variable investment choices to the PAM investment choices to the extent we deem, at our sole discretion, necessary to support the guarantees under the rider. We will transfer amounts to the PAM investment choices proportionally from all your

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variable investment choices. Currently, PAM transfers are being made to the PAM Transamerica AEGON U.S. Government Securities VP—Service Class subaccount.

PAM is designed to help reduce portfolio risk associated with negative performance. Using PAM, we will transfer amounts from your variable investment choices to the PAM investment choices to the extent we deem, in our sole discretion, necessary to help manage portfolio risk and support the guarantees under the Living Benefits Rider. You should not view the Living Benefits Rider nor PAM as a “market timing” or other type of investment program designed to enhance your policy value. If you choose this rider, it may result in a lower policy value in certain situations. If policy value is transferred from your chosen variable investment choices to the PAM investment choices, less of your policy value may be available to participate in any future positive investment performance of your variable investment choices. This may potentially provide a lower policy value than if you did not select the Living Benefits Rider.

Under PAM, the mathematical model compares a number of interrelated factors including your policy value and the guarantees under the rider to be provided in the future. The mathematical model also uses assumptions for interest rates, the duration of the policy and stock market volatility. The following table sets forth the most influential of these factors and indicates how each one (assuming all other factors remain constant) could trigger a transfer into or out of the PAM subaccounts.

Factor	Direction of Transfer
Policy Value Increases	Transfer to the investment options
Policy Value Decreases	Transfer to the PAM subaccounts
Interest Rates Increase	Transfer to the investment options
Volatility Increases	Transfer to the PAM subaccounts

The amount of the transfer will vary depending on the magnitude and direction of the change in these factors. We may transfer some or all of your policy value to or from the PAM investment choices.

Transactions you make also affect the number of PAM transfers including:

• additional premium payments; and

• excess withdrawals.

These transactions will change the policy value relative to the guarantees under the rider and may result in additional PAM transfers.

You may not allocate premium payments to, nor transfer policy value into or out of, the PAM investment choices. PAM transfers are not subject to any transfer fee and do not count against the number of any free transfers we allow. Transfers out of a fixed account PAM investment choice are at our discretion and may be subject to an excess interest adjustment if the transfer occurs before the end of a guarantee period. Any transfer to your variable investment choices will be allocated into your variable investment choices in proportion to the amount of policy value in each variable investment choice.

Generally, transfers to the PAM investment choices first occur when the policy value drops by a cumulative amount of 3% to 5% over any period of time, although we may make transfers to the PAM investment choices when the policy value drops by a cumulative amount of less than 3% in relation to the guarantees. If the policy value continues to fall, more transfers to the PAM investment choices will occur. When a transfer occurs, the transferred policy value is allocated to the PAM investment choice(s) we deem appropriate. The policy value allocated to the PAM investment choices will remain there unless the performance of your chosen investment choices recovers sufficiently to enable us to transfer amounts back to your investment choices while maintaining the guarantees under the Living Benefits Rider. This

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generally occurs when the policy value increases by 5% to 10% in relation to the guarantees, although we may require a larger increase before transferring amounts back to your investment options.

The Daily Rebalancing Formula Under the Mathematical Model: As noted above, to limit our exposure under the rider, we transfer policy value from your investment options to the PAM subaccounts, to the extent called for by a mathematical model that will not change once you purchase the policy. We do this in order to minimize the need to provide payments (for example, when your policy value goes to zero by other than an excess withdrawal), or to extend the time before any payment is required. When payments become more likely (because your policy value is approaching zero), the mathematical model will tend to allocate more policy value to the PAM subaccounts. If, on the other hand, the policy value is much higher than the guarantees under the rider, then payments may not be necessary, and therefore, the mathematical model will tend to allocate more policy value to the investment options.

Each business day the mathematical model computes a “target allocation,” which is the portion of the policy value that is to be allocated to the investment options.

The target allocation depends on several factors, including the policy value as compared to the guarantees under the rider, the time until payments are likely required, and interest rates. However, as time passes, these factors change. Therefore, the target allocation changes from one business day to the next.

See “Appendix—PAM Method Transfers” in the SAI for more detail regarding the workings of the mathematical model, including the formula used to compute the allocation on a daily basis.

Upgrades

Prior to the annuitant’s 86th birthday and after the third rider anniversary, you can upgrade the total withdrawal base and guaranteed future value to the policy value by sending us written notice. The minimum remaining withdrawal amounts will also be upgraded to the policy value and the maximum annual withdrawal amounts will be recalculated.

If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date, guaranteed future value date, and its own rider fee percentage (which may be higher than your current rider fee percentage). The “principal back” and “for life” withdrawal percentages will not change. The new rider date will be the date the Company receives all necessary information.

Annuitization

If you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments equal to your 5% “for life” maximum annual withdrawal amount.

Termination

The Living Benefits Rider will terminate upon the earliest of the following:

• the date we receive written notice from you in good order requesting termination of the Living Benefits Rider (you may not terminate the rider before the third rider anniversary);

• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your 5% “for life” maximum annual withdrawal amount);

• the date the policy to which this rider is attached is assigned or the owner is changed without our approval;

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• the date an excess withdrawal reduces your policy value to zero; or

• termination of your policy.

Please note: This feature terminates upon annuitization and there is a maximum annuity commencement date.

The Living Benefits Rider may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Living Benefits Rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Retirement Income Choice^® 1.2 Rider

You may elect to purchase the optional Retirement Income Choice^® 1.2 Rider which, provides you with: (1) a guaranteed lifetime withdrawal benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that you allocate 100% of your policy value according to either the designated allocation option or open allocation option both of which are designed to help manage the Company’s risk and support the guarantees under the rider. The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Retirement Income Choice^® 1.2 rider for a qualified policy.

Retirement Income Choice^® 1.2 – Base Benefit

Under this benefit, you can receive up to the rider withdrawal amount each rider year (first as withdrawals from your policy value and, if necessary, as payments from us), starting with the rider year immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday and lasting until the annuitant’s death (unless your withdrawal base is reduced to zero because of an “excess withdrawal”; see Withdrawal Base Adjustments and Rider Death Benefit Adjustments, below). A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date.

Example. Assume you are the owner and annuitant and you make a single premium payment of $100,000 when you are 66 years old. Further assume that you do not make any withdrawals or additional premium payments, no automatic step-ups occurred, but that after five years your policy value has declined to $90,000 solely because of negative investment performance. With an annual growth rate percentage of 5.0%, after 5 years the withdrawal base is equal to $127,628 ($100,000 x 1.05⁵). You could receive up to $6,381 which is the applicable withdrawal percentage of 5.0% for the single life option multiplied by the withdrawal base of $127,628, each rider year for the rest of your life (assuming that you take your first withdrawal when you are age 71, that you do not withdraw more than the rider withdrawal amount in any one year and there are no future automatic step-ups.)

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion.

Example continued. Assume the same facts as above, but you withdraw $10,000 when you are 71 years old. That excess withdrawal decreases your future rider withdrawal amount to $6,105.

See the “Appendix—Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders -Retirement Income Choice^® 1.2 Rider” for examples showing the effect of hypothetical withdrawals in more detail.

Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid

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under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider to allow for withdrawals from your policy value each rider year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the rider withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• The longer you wait to start making withdrawals under the benefit, the less time you have to benefit from the guarantee because of decreasing life expectancy as you age. On the other hand, the longer you wait to begin making withdrawals, the higher your withdrawal percentage may be, the higher the withdrawal base due to growth may be, and the more opportunities you will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that you will not begin making withdrawals at the most financially beneficial time for you.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All policy value must be allocated according to the Designated Allocation option or the Open Allocation option. You should consult with your registered representative to assist you in determining whether the investment restrictions attributable to each option are suited for your financial needs and risk tolerance.

• Cumulative withdrawals in any rider year that are in excess of the rider withdrawal amount are excess withdrawals.

• An excess withdrawal may impact the withdrawal base, and rider death benefit (if applicable) on a greater than dollar-for-dollar basis.

• Any withdrawal will reduce your rider death benefit (if applicable).

• Upon the death of the annuitant (or the death of the surviving spouse if the joint option is elected), the Retirement Income Choice^® 1.2 rider terminates and all benefits thereunder cease.

Like all withdrawals, withdrawals while this rider is in effect also:

• reduce your policy value;

• reduce your base policy death benefit and other benefits;

• may be subject to excess interest adjustment;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Withdrawal Amount. You can withdraw up to the rider withdrawal amount in any rider year (after age 59) from your policy value without causing an excess withdrawal. See “Withdrawal Base Adjustments” and “Rider Death Benefit Adjustments” below.

The rider withdrawal amount is zero if the annuitant is not 59 years old on the rider date and remains zero until the first day of the rider year after the annuitant’s 59th birthday. If the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is at least 59 years old on the rider date, then the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage (see below).

For qualified policies: If the plan participant (generally the annuitant) is at least 70 ¹/2 years old, the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

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• the rider withdrawal amount described above; or

• an amount equal to any minimum required distribution amount (for the tax year on that rider anniversary) calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (prior to the first rider anniversary we use the policy value on the rider date and thereafter we use the policy value on the date prescribed by the IRS) and (4) amounts from the current calendar year (no carry-over from past years).

Only amounts calculated as set forth above can be used as the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

If your policy value reaches zero, then you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits guaranteed by this rider after your policy value reaches zero, you must select the amount and frequency of future payments. Once selected, the amount and frequency cannot be changed.

Please note:

• If the rider is added prior to the annuitant’s 59th birthday, the rider withdrawal amount will be zero until the beginning of the rider year after the annuitant’s 59th birthday, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if you do not take the entire rider withdrawal amount during a rider year, you cannot take more than the rider withdrawal amount in the next rider year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

• All policy value must be allocated according to either the Designated Allocation option or the Open Allocation option. (See “Allocation Options and Restrictions.”)

Withdrawal Percentage. We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday. The withdrawal percentage is as follows:

Age at time of first withdrawal	Withdrawal Percentage— Single Life Option			Withdrawal Percentage— Joint Life Option
0-58		0.0	%		0.0	%
59-64		4.0	%		3.5	%
65-74		5.0	%		4.5	%
³ 75		6.0	%		5.5	%

Please note, once established, the withdrawal percentage will not generally increase even though the annuitant’s age increases except in certain instances involving automatic step-ups.

Withdrawal Base. We use the withdrawal base to calculate the rider withdrawal amount. The withdrawal base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to excess withdrawals.

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Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• Because the withdrawal base is generally equal to the policy value on the rider date, the rider withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

On each rider anniversary, the withdrawal base will equal the greatest of:

• Current withdrawal base;

• The withdrawal base immediately before the rider anniversary, increased by the growth credit, if any (see “Growth” below);

• The policy value on any monthiversary, including the current rider anniversary (see “Automatic Step-Up” below).

Growth. On each of the first ten rider anniversaries, we will add an annual growth credit to your withdrawal base if no withdrawal occurred during the preceding rider year. The annual growth credit is equal to 5.0% of the withdrawal base immediately before the rider anniversary (i.e., withdrawal base x 0.05) .

Please note: Because a withdrawal will eliminate a potential growth credit for that rider year, you should consider your need or possible need to take withdrawals within the first 10 rider years in deciding whether to purchase the rider.

Automatic Step-Up. On each rider anniversary, we will automatically step-up the withdrawal base to an amount equal to the greater of (1) the highest policy value on any monthiversary during the preceding rider year, if no excess withdrawal occurred, or (2) the policy value on the rider anniversary. This comparison takes place after the application of any applicable annual growth credit. The withdrawal percentage (as indicated in the withdrawal percentage table) will also increase if you have crossed into another age band prior to the automatic step-up.

Beginning on the fifth rider anniversary, the rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum rider fee percentage in the fee table.

Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, you have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentage, and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that you do so within 30 days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection (each time you elect to opt out), in good order, at our Administrative and Service Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Withdrawal Base Adjustments. Cumulative gross partial withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Cumulative gross partial withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal (if the policy value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the policy value when the policy value is less than the withdrawal base), possibly to zero. Withdrawal base adjustments occur immediately following excess withdrawals. See “Appendix - Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders -Retirement Income Choice^® 1.2 Rider” for examples

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showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base by a pro rata amount. The effect of an excess withdrawal is amplified if the policy value is less than the withdrawal base.

Please Note: We do not monitor for, or notify you of, excess withdrawals. If you take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because your otherwise regular or scheduled non-excess withdrawals may thereafter all be excess withdrawals that reduce or eliminate your benefit on an accelerated basis.

Allocation Options and Restrictions. If you elect this rider, you must allocate 100% of your policy value according to either the Designated Allocation option or the Open Allocation option. Transfers will be permitted between the Designated Allocation option and the Open Allocation option at any time.

Designated Allocation Option. Under the Designated Allocation option, you must designate 100% of your policy value into one or more of the designated investment options in the following designated allocation groups:

Designated Allocation Group A

AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

American Funds - Asset Allocation Fund – Class 2

Fidelity VIP Balanced Portfolio – Service Class 2

GE Investments Total Return Fund – Class 3

Transamerica Index 75 VP – Service Class

Transamerica Madison Moderate Growth Allocation VP – Service Class

Designated Allocation Group B

Transamerica BlackRock Global Allocation VP – Service Class

Transamerica BlackRock Tactical Allocation VP – Service Class

Transamerica Index 50 VP – Service Class

Transamerica Madison Balanced Allocation VP – Service Class

Transamerica Madison Diversified Income VP – Service Class

Designated Allocation Group C

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

American Funds - Bond Fund – Class 2

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica AEGON Money Market VP – Service Class

Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica Index 35 VP – Service Class

Transamerica Madison Conservative Allocation VP – Service Class

Transamerica PIMCO Real Return TIPS VP – Service Class

Transamerica PIMCO Total Return VP – Service Class

Fixed Account

Transfers between the designated investment options in the Designated Allocation option are allowed as permitted under the policy; however, transfers as provided for in the policy from a designated investment option to a non-designated investment option are not permitted unless you change your allocation option to the Open Allocation option.

Open Allocation Option. Under the Open Allocation option, you may allocate to any investment options available under the policy.

If you elect the Open Allocation option, the OA Method will automatically be in effect. The OA Method uses a mathematical model which is designed to help the Company manage portfolio risk and support the guarantees under the rider. Under the OA Method, the mathematical model monitors

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your policy value and guarantees under the rider and transfers amounts back and forth between the OA Transamerica ProFund UltraBear VP subaccount or certain other subaccounts we choose (each an “OA subaccount” and collectively, the “OA subaccounts”) and the variable investment options you choose to the extent necessary to support the benefit guarantees. You will still have complete discretion over the selection of, and allocation to, the variable investment options for any portion of your policy value that the OA Method does not allocate to the OA subaccounts. You should read the underlying fund prospectus for the variable OA subaccounts carefully before you elect the Open Allocation option.

Transfers to the OA subaccounts according to the mathematical model will be proportionally from all your variable investment options. This mathematical model will not change once you purchase the rider, but we may use a different model for riders issued in the future.

The OA Method is designed to help manage the Company’s portfolio risk associated with negative performance and support the guarantees under the rider. You should not view the rider nor the OA Method as a “market timing” or other type of investment program designed to enhance your policy value. If you choose the Open Allocation option, it may result in a lower policy value in certain situations. If policy value is transferred from your chosen variable investment options to the OA subaccounts, less of your policy value may be available to participate in any future positive investment performance of your variable investment options. This may potentially provide a lower policy value than if you did not select the Open Allocation option.

Under the OA Method, the mathematical model compares a number of interrelated factors including your policy value and the guarantees under the rider to be provided in the future. The mathematical

model also uses assumptions for interest rates, the duration of the policy and stock market volatility. The following table sets forth the most influential of these factors and indicates how each one (assuming all other factors remain constant) could trigger a transfer into or out of the OA subaccounts.

Factor	Direction of Transfer
Policy Value Increases	Transfer to the investment options
Policy Value Decreases	Transfer to the OA subaccounts
Interest Rates Increase	Transfer to the investment options
Volatility Increases	Transfer to the OA subaccounts

The amount of the transfer will vary depending on the magnitude and direction of the change in these factors.

Transactions you make also affect the number of OA transfers including:

• additional premium payments; and

• excess withdrawals.

These transactions will change the policy value relative to the guarantees under the rider and may result in additional OA transfers.

You may not allocate premium payments to, nor transfer policy value into or out of, the OA subaccounts. OA Method transfers are not subject to any transfer fee and do not count against the number of any free transfers we allow. Any transfer to your variable investment options will be allocated into your variable investment options in proportion to the amount of policy value in each variable investment option.

Generally, transfers to the OA subaccounts first occur when the policy value drops by a cumulative amount of 2% to 5% over any period of time in relation to the guarantees, although the mathematical model may make transfers to the OA subaccounts when the

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policy value drops by a cumulative amount of less than 3%. The mathematical model will not transfer more than 20% of the policy value to the OA subaccounts. If the policy value continues to fall, no more transfers to the OA subaccounts will occur. However, up to 30% of the policy value could be in the OA subaccounts due to negative performance of the investment options. If negative investment performance causes the percentage of the policy value in the OA subaccounts to exceed 30% then the mathematical model will transfer the excess policy value back into your investment options. The policy value allocated to the OA subaccounts will remain there unless your policy value recovers sufficiently to enable us to transfer amounts back to your investment options while maintaining the guarantees under the rider. This generally occurs when the policy value increases by 2.5% to 10% in relation to the guarantees under the rider, although the mathematical model may require a larger increase before transferring amounts back to your investment options.

The Daily Rebalancing Formula Under the Mathematical Model: As noted above, to limit our exposure under the rider, we transfer policy value from your investment options to the OA subaccounts, to the extent called for by a mathematical model that will not change once you purchase the policy. We do this in order to minimize the need to provide payments (for example, when your policy value goes to zero by other than an excess withdrawal), or to extend the time before any payment is required. When payments become more likely (because your policy value is approaching zero), the mathematical model will tend to allocate more policy value to the OA subaccounts. If, on the other hand, the policy value is much higher than the guarantees under the rider, then payments may not be necessary, and therefore, the mathematical model will tend to allocate more policy value to the investment options. Each business day the mathematical model computes a “target allocation,” which is the portion of the policy value that is to be allocated to the investment options.

The target allocation depends on several factors, including the policy value as compared to the guarantees under the rider, the time until payments are likely required, and interest rates. However, as time passes, these factors change. Therefore, the target allocation changes from one business day to the next.

See “Appendix—OA Method Transfers” in the SAI for more detail regarding the workings of the mathematical model, including the formula used to compute the allocation on a daily basis.

Please Note: The OA Transamerica ProFunds UltraBear VP subaccount invests in the Transamerica ProFunds UltraBear VP portfolio which is designed to seek daily investment results, before fees and expenses that correspond to twice (200%) the inverse (opposite) of the daily performance of the S&P 500 Index. Please read the prospectus for the Transamerica ProFunds UltraBear VP portfolio to understand how its investment objective may affect your policy value if OA Method transfers occur to the OA Transamerica ProFunds UltraBear VP subaccount.

You cannot allocate premium payments or transfers to the OA subaccounts.

Please note:

• If you no longer want to be subject to an allocation option, you will be required to terminate the rider. If you terminate the rider you will lose all of its benefits.

• We can change a designated allocation group or eliminate a designated investment option at any time. If this occurs, then a policy owner will be required to reallocate values in the affected

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designated investment options to other designated investment options that meet the allocation requirements.

Manual Upgrades. You can upgrade the withdrawal base to the policy value during the 30-day period following each successive fifth rider anniversary by sending us written notice in a form acceptable to us, as long as the rider issue requirements for a new rider are met. At this time the rider withdrawal amount and, if applicable, the rider death benefit will be recalculated. If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date, its own rider fee percentage (which may be higher or lower than your current rider fee percentage) and its own terms and benefits (which may not be as advantageous as the current rider); and any options you elect to change or add. The new rider date will be the date the Company receives all necessary information in good order. You cannot elect a manual upgrade if the annuitant (or the annuitant’s spouse if younger and the joint option is elected) is 86 or older.

Retirement Income Choice^® 1.2 – Additional Options

You may elect the following options with this rider (the options are not mutually exclusive):

• Death Benefit;

• Joint Life; and

• Income Enhancement.

There is an additional fee if you elect the Death Benefit and/or the Income Enhancement Benefit option(s) under the rider. If you elect the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) is lower. Furthermore, if you elect the Joint Life option in combination with the Death Benefit and/or the Income Enhancement Benefit option(s), then the fee for each of those additional options will be different than under the Single Life option. See “Retirement Income Choice^® 1.2 Rider and Additional Option Fees”.

1. Death Benefit. If you elect this rider, you can also elect to add an additional amount to the death benefit payable under the base policy, upon the death of the annuitant (or if the joint life option is selected, the annuitant’s spouse). The additional amount will be equal to the excess, if any, of the rider death benefit over the greater of any optional guaranteed minimum death benefit or the base policy death benefit. The additional amount can be zero. See “Section 8. Death Benefit.”

Rider Death Benefit. The rider death benefit on the rider date is the policy value (less any premium enhancement if the rider is added in the first policy year). After the rider date, the rider death benefit is equal to:

• the rider death benefit on the rider date; plus

• subsequent premium payments; less

• adjustments for withdrawals (as described under “Rider Death Benefit Adjustments,” below).

Rider Death Benefit Adjustments. Gross partial withdrawals up to the rider withdrawal amount in a rider year will reduce the rider death benefit on a dollar-for-dollar basis. Gross partial withdrawals in excess of the rider withdrawal amount in a rider year will reduce the rider death benefit by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in policy value), and possibly to zero. See “Appendix -Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders - Retirement Income Choice^® 1.2 Rider” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that results in pro rata adjustments. Rider death benefit adjustments occur immediately following all withdrawals.

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Please note:

• No additional death benefit is payable if the base policy death benefit (including the guaranteed minimum death benefit) exceeds the rider death benefit. The greater the death benefit payable under the guaranteed minimum death benefit selected, the more likely it is that an additional amount will not be payable under the rider death benefit option.

• Excess withdrawals may eliminate the additional death benefit available with this rider. You will continue to pay the fee for this option, even if the additional death benefit available under the rider is $0.

• Manual upgrades to the withdrawal base will result in a recalculation of the rider death benefit. However, automatic step-ups will not reset the rider death benefit.

• If an owner who is not the annuitant dies and the surviving spouse continues the policy, then no additional amount is payable. If the policy is not continued, then the surviving owner (who is also the sole beneficiary) may elect to receive lifetime annuity payments equal to the rider withdrawal amount divided by the number of payments each year instead of receiving the policy’s cash value. Please note that under federal tax law, upon the death of an owner, only a “spouse,” as defined under the Federal Defense of Marriage Act is permitted to continue a policy without taking required distributions. (The payment of a death benefit under the policy is triggered by the death of the annuitant.)

The additional death benefit payment option may be referred to as “minimum remaining withdrawal amount” on your policy statement and other documents.

2. Joint Life Benefit. If you elect this rider, then you can also elect to postpone termination of the rider until the later of the annuitant or annuitant’s spouse’s death (only if the annuitant’s spouse continues the policy).

Please note:

• The withdrawal percentage for each “age at the time of first withdrawal” is lower if you elect this option.

• The annuitant’s spouse must be either a joint owner along with the annuitant or the sole primary beneficiary (and there is no joint owner), if you elect this option.

• A former spouse of the annuitant cannot continue to keep the policy in force if no longer married to the annuitant at the time of the annuitant’s death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.

• The annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.

• The rider withdrawal percentage is based on the age of the younger of the annuitant and annuitant’s spouse, if you elect this option.

• The rider death benefit is not payable until the death of the surviving spouse, if you elect this option.

• You cannot elect a manual upgrade if the annuitant or annuitant’s spouse is 86 or older (lower if required by state law).

3. Income Enhancement Option. If you elect this rider, you can also elect to have your withdrawal percentage double if either the annuitant (or the annuitant’s spouse if the joint life option is elected) is confined, due to a medical necessity in a hospital or nursing facility due to physical or cognitive ailments. Benefits from this option are not available unless the rider has been in effect for 12 months (the “waiting period”) and confinement must meet the elimination period of 180 days within the last 365 days. The elimination period and waiting period can, but do not need to, run concurrently.

Please note:

• You cannot elect the Income Enhancement Option if the qualifying person or persons is/are already admitted to a hospital or already reside in a nursing facility.

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• Confinement must be prescribed by a physician based on the individual’s inability to sustain themselves outside of a hospital or nursing facility due to physical or cognitive ailments.

• The increase to the withdrawal percentage stops when the qualifying person or persons is/are no longer confined as described above.

• The hospital and/or nursing facility must meet the criteria listed below to qualify for the benefit.

• You cannot elect the Income Enhancement Option if you are confined in an assisted living facility or a residential care facility.

A Qualifying Hospital must meet the following criteria:

• It is operated pursuant to the laws of the jurisdiction in which it is located;

• It is operated primarily for the care and treatment of sick and injured persons on an inpatient basis;

• It provides 24-hour nursing service by or under the supervision of registered graduate professional nurses;

• It is supervised by a staff of one or more licensed physicians; and

• It has medical, surgical and diagnostic facilities or access to such facilities.

A Qualifying Nursing Facility must meet the following criteria:

• It is operated pursuant to the laws and regulations of the state in which it is located as a nursing facility or Alzheimer’s disease facility;

• It provides care performed or supervised by a registered graduate nurse;

• It provides room and board accommodations; and

• Will provide 24-hour nursing services, 7 days a week by an on-site Registered Nurse and related services on a continuing inpatient basis.

• It has a planned program of policies and procedures developed with the advice of, and periodically reviewed by, at least one physician; and

• It maintains a clinical record of each patient.

A Qualifying Nursing Facility does not include:

• Assisted living facilities or residential care facilities;

• A place primarily for treatment of mental or nervous disorders, drug addiction or alcoholism;

• A home for the aged, a rest home, community living center or a place that provides domestic, resident, retirement or educational care;

• Personal care homes, personal care boarding homes, residential or domiciliary care homes;

• A rehabilitation hospital or basic care facilities;

• Adult foster care facilities, congregate care facilities, family and group living assisted living facilities; or

• Other facilities similar to those described above.

We will require confirmation of confinement in a qualifying hospital or a qualifying nursing facility while benefit payouts are being received. Confirmation of that confinement will be attained and approved by completing our “Income Enhancement Election and Proof of Confinement Questionnaire” form. This form requires additional proof of confinement which may be a physician’s statement, a statement from a hospital or nursing facility administrator, or any other information satisfactory to us which may include information from third party or company interviews and/or visits of the facility. If it is determined that the qualifying individual was not confined in an eligible facility as defined above and has received payments under the Income Enhancement Option, those payments could be considered an excess withdrawal and have a negative effect on the rider values. If confinement ceases, you may re-qualify by satisfying another 180-day elimination period requirement.

Retirement Income Choice^® 1.2 Fees

Retirement Income Choice^® 1.2 Base Rider Fee. The base rider fee is calculated on the rider date and at the beginning of each rider quarter. The base rider fee

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will be adjusted for any premium additions, excess withdrawals, transfers between designated investment groups, or changes to other allocation options during the rider quarter. It will be deducted automatically from your policy value at the end of each rider quarter.

On an annual basis, in general terms, the base rider fee is the applicable “rider fee percentage” (see the Fee Table) times the withdrawal base.

The Open Allocation option base quarterly fee is calculated by multiplying (A) by (B) by (C), where:

(A) is the withdrawal base;

(B) is the rider fee percentage; and

(C) is the number of remaining days in the rider quarter divided by the total number of days in the applicable rider year.

The Designated Allocation option base quarterly fee is calculated by multiplying (A) by (B) divided by (C) multiplied by (D), where:

(A) is the withdrawal base;

(B) is the sum of each designated investment group’s rider fee percentage multiplied by the applicable designated investment group’s value;

(C) is the total policy value; and

(D) is the number of remaining days in the rider quarter divided by the total number of days in the applicable rider year.

We will assess a prorated rider fee upon termination of the rider for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

Beginning on the fifth rider anniversary, the rider fee percentage may increase (or decrease) at the time of an automatic step-up. Each time an automatic step-up will result in a rider fee percentage increase, you will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that you do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection, in good order, at our Administrative and Service Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Please note regarding the base rider fee:

• Because the base rider fee is a percentage of the withdrawal base, it could be a much higher percentage of your policy value, particularly in the event that your policy value decreases significantly.

• Because the base rider fee is a percentage of the withdrawal base, the amount of the base rider fee we deduct will increase if the withdrawal base increases (although the percentage(s) may remain the same).

• If you make a transfer from one designated allocation group to another designated allocation group that has a higher rider fee percentage, then the resulting rider fee will be higher.

Base Rider Fee Adjustment for Transfers. For transfers that you make between different designated investment options in different designated allocation groups or different allocation options on other than the first business day of a rider quarter, a “rider fee adjustment” will be applied. This adjustment is necessary because of differences in the rider fee percentages. The adjustment in the rider fee percentage will ensure that you are charged the correct overall rider fee. The base rider fee adjustment will be calculated using the same formula as the base rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be allocated.

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Base Rider Fee Adjustment for Premium Payments and Excess Withdrawals. A rider fee adjustment will also be calculated for subsequent premium payments and excess withdrawals because these events will change the withdrawal base. The rider fee adjustment will be calculated using the same formula as the base rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. As with the rider fee adjustments calculated for transfers, the rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

Additional Option Fees. If you elect options with this rider, then you will be charged a fee for each option you elect that is in addition to the rider fee for the base benefit (see the Fee Table). Each additional fee is charged quarterly before annuitization and is a percentage of the withdrawal base on each rider anniversary.

We will also deduct all rider fees pro rata upon full surrender of the policy or other termination of the rider.

Retirement Income Choice^® 1.2 Rider Issue Requirements

The Company will not issue the Retirement Income Choice^® 1.2 rider unless:

• the annuitant is not yet age 86 (lower if required by state law);

• the annuitant is also an owner (except in the case of non-natural owners);

• there are no more than two owners; and

• if the joint life option is elected, the annuitant’s spouse is also not yet 86 (lower if required by state law) and (1) is a joint owner along with the annuitant or (2) is the sole primary beneficiary (and there is no joint owner).

Termination

The Retirement Income Choice^® 1.2 rider and any additional options will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;

• the death of the annuitant (or if the joint life option was elected, the death of the annuitant’s spouse if that spouse continued the policy as the surviving spouse);

• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your rider withdrawal amount);

• the date the policy to which this rider is attached is assigned or the owner is changed without our approval;

• the date an excess withdrawal reduces your policy value to zero; or

• termination of your policy.

Please note: This rider terminates upon annuitization and there is a maximum annuity commencement date at which time your policy will be annuitized according to its terms. However, if you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments which are at least equal to your rider withdrawal amount. Please contact us for more information concerning your options.

The Retirement Income Choice^® 1.2 rider and additional options may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Retirement Income Choice^® 1.2 rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

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Retirement Income Choice^® 1.4 Rider - This Rider is No Longer Available for New Sales

You may elect to purchase the optional Retirement Income Choice^® 1.4 rider which, provides you with: (1) a guaranteed lifetime withdrawal benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that you allocate 100% of your policy value in certain designated investment choices which are designed to help manage the Company’s risk and support the guarantees under the rider. The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Retirement Income Choice^® 1.4 rider for a qualified policy.

Retirement Income Choice^® 1.4 – Base Benefit

Under this benefit, you can receive up to the rider withdrawal amount each rider year (first as withdrawals from your policy value and, if necessary, as payments from us), starting with the rider year immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday and lasting until the annuitant’s death (unless your withdrawal base is reduced to zero because of an “excess withdrawal”; see Withdrawal Base Adjustments and Rider Death Benefit Adjustments, below). A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date.

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion.

See the “Appendix—Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders -Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider” for examples showing the effect of hypothetical withdrawals in more detail.

Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider to allow for withdrawals from your policy value each rider year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the rider withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• The longer you wait to start making withdrawals under the benefit, the less time you have to benefit from the guarantee because of decreasing life expectancy as you age. On the other hand, the longer you wait to begin making withdrawals, the higher your withdrawal percentage may be, the higher the withdrawal base due to growth may be, and the more opportunities you will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that you will not begin making withdrawals at the most financially beneficial time for you.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All policy value must be allocated to a limited number of specified funds. You should consult with your registered representative to assist you in determining whether these certain investment options are suited for your financial needs and risk tolerance.

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• Cumulative withdrawals in any rider year that are in excess of the rider withdrawal amount are excess withdrawals.

• An excess withdrawal may impact the withdrawal base, and rider death benefit (if applicable) on a greater than dollar-for-dollar basis.

• Any withdrawal will reduce your rider death benefit (if applicable).

• Upon the death of the annuitant (or the death of the surviving spouse if the joint option is elected), the Retirement Income Choice^® 1.4 rider terminates and all benefits thereunder cease.

Like all withdrawals, withdrawals while this rider is in effect also:

• reduce your policy value;

• reduce your base policy death benefit and other benefits;

• may be subject to excess interest adjustment;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Withdrawal Amount. You can withdraw up to the rider withdrawal amount in any rider year (after age 59) from your policy value without causing an excess withdrawal. See “Withdrawal Base Adjustments” and “Rider Death Benefit Adjustments” below.

The rider withdrawal amount is zero if the annuitant is not 59 years old on the rider date and remains zero until the first day of the rider year after the annuitant’s 59th birthday. If the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is at least 59 years old on the rider date, then the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage (see below).

For qualified policies: If the plan participant (generally the annuitant) is at least 70 ¹/2 years old, the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

• the rider withdrawal amount described above; or

• an amount equal to any minimum required distribution amount (for the tax year on that rider anniversary) calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (including the present value of any additional benefits provided under the policy to the extent required to be taken into account under IRS guidance) and (4) amounts from the current calendar year (no carry-over from past years).

Only amounts calculated as set forth above can be used as the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

If your policy value reaches zero, then you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits guaranteed by this rider after your policy value reaches zero, you must select the amount and frequency of future payments. Once selected, the amount and frequency cannot be changed.

Please note:

• If the rider is added prior to the annuitant’s 59th birthday, the rider withdrawal amount will be zero until the beginning of the rider year after the annuitant’s 59th birthday, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if you do not take the

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entire rider withdrawal amount during a rider year, you cannot take more than the rider withdrawal amount in the next rider year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

• All policy value must be allocated to a limited number of specified funds. (See “Designated Investment Options.”)

Withdrawal Percentage. We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday. The withdrawal percentage is as follows:

Age at time of first withdrawal	Withdrawal Percentage— Single Life Option			Withdrawal Percentage— Joint Life Option
0-58		0.0	%		0.0	%
59-64		4.0	%		3.5	%
65-74		5.0	%		4.5	%
³ 75		6.0	%		5.5	%

Please note, once established, the withdrawal percentage will not generally increase even though the annuitant’s age increases except in certain instances involving automatic step-ups.

Withdrawal Base. We use the withdrawal base to calculate the rider withdrawal amount. The withdrawal base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to excess withdrawals.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• Because the withdrawal base is generally equal to the policy value on the rider date, the rider withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

On each rider anniversary, the withdrawal base will equal the greatest of:

• Current withdrawal base;

• The withdrawal base immediately before the rider anniversary, increased by the growth credit, if any (see “Growth” below);

• The policy value on any monthiversary, including the current rider anniversary (see “Automatic Step-Up” below).

Growth. On each of the first ten rider anniversaries, we will add an annual growth credit to your withdrawal base if no withdrawal occurred during the preceding rider year. The annual growth credit is equal to 5.0% of the withdrawal base immediately before the rider anniversary (i.e., withdrawal base x 0.05) .

Please note: Because a withdrawal will eliminate a potential growth credit for that rider year, you should consider your need or possible need to take withdrawals within the first 10 rider years in deciding whether to purchase the rider.

Automatic Step-Up. On each rider anniversary, we will automatically step-up the withdrawal base to an amount equal to the greater of (1) the highest policy value on any monthiversary during the preceding rider year, if no excess withdrawal occurred, or (2) the policy value on the rider anniversary. This

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comparison takes place after the application of any applicable annual growth credit. The withdrawal percentage (as indicated in the withdrawal percentage table) will also increase if you have crossed into another age band prior to the automatic step-up.

Beginning on the fifth rider anniversary, the rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum rider fee percentage in the fee table.

Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, you have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentage, and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that you do so within 30 days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection (each time you elect to opt out), in good order, at our Administrative and Service Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Withdrawal Base Adjustments. Cumulative gross partial withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Cumulative gross partial withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal (if the policy value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the policy value when the policy value is less than the withdrawal base), possibly to zero. Withdrawal base adjustments occur immediately following excess withdrawals. See “Appendix - Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders -Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base by a pro rata amount. The effect of an excess withdrawal is amplified if the policy value is less than the withdrawal base. See the “Appendix - Guaranteed Lifetime Benefit Adjustment Partial Surrenders - Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider” for examples showing the effect hypothetical excess withdrawals in more detail.

Please Note: We do not monitor for, or notify you of, excess withdrawals. If you take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because your otherwise regular or scheduled non-excess withdrawals may thereafter all be excess withdrawals that reduce or eliminate your benefit on an accelerated basis.

Designated Investment Options.

If you elect this rider, you must designate 100% of your policy value into one or more of the designated investment options in the following designated allocation groups:

Designated Allocation Group A

AllianceBernstein Balanced Wealth Strategy Portfolio – Class B

American Funds - Asset Allocation Fund – Class 2

Fidelity VIP Balanced Portfolio – Service Class 2

GE Investments Total Return Fund – Class 3

Transamerica Index 75 VP – Service Class

Transamerica Madison Moderate Growth Allocation VP – Service Class

Designated Allocation Group B

Transamerica BlackRock Global Allocation VP – Service Class

Transamerica BlackRock Tactical Allocation VP – Service Class

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Transamerica Index 50 VP – Service Class

Transamerica Madison Balanced Allocation VP – Service Class

Transamerica Madison Diversified Income VP – Service Class

Designated Allocation Group C

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

American Funds - Bond Fund – Class 2

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica AEGON Money Market VP – Service Class

Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica Index 35 VP – Service Class

Transamerica Madison Conservative Allocation VP – Service Class

Transamerica PIMCO Real Return TIPS VP – Service Class

Transamerica PIMCO Total Return VP – Service Class Fixed Account

Transfers between the designated investment options are allowed as permitted under the policy; however, you cannot transfer any amount (or allocate premium payments) to any non-designated investment option. Within 30 days following the fifth rider anniversary (and each successive fifth rider anniversary), you can terminate this rider. Starting the next business day, you may transfer (or allocate premium payments) to a non-designated investment option. Terminating the rider will result in losing all your benefits under the rider.

Please note:

• The earliest you can transfer (or allocate premium payments) to a non-designated investment option is the first business day after the fifth rider anniversary. You will be required to terminate the rider first (and lose its benefits).

• We can change a designated allocation group or eliminate a designated investment option at any time. If this occurs, then a policy owner will be required to reallocate values in the affected designated investment options to other designated investment options that meet the allocation requirements.

Manual Upgrades. You can upgrade the withdrawal base to the policy value during the 30-day period following each successive fifth rider anniversary by sending us written notice in a form acceptable to us, as long as the rider issue requirements for a new rider are met. At this time the rider withdrawal amount and, if applicable, the rider death benefit will be recalculated. If an upgrade is elected, your current rider will terminate and a new rider will be issued with a new rider date, its own rider fee percentage (which may be higher or lower than your current rider fee percentage) and its own terms and benefits (which may not be as advantageous as the current rider); and any options you elect to change or add. The new rider date will be the date the Company receives all necessary information in good order. You cannot elect a manual upgrade if the annuitant (or the annuitant’s spouse if younger and the joint option is elected) is 86 or older.

Retirement Income Choice^® 1.4 – Additional Options

You may elect the following options with this rider (the options are not mutually exclusive):

• Death Benefit;

• Joint Life; and

• Income Enhancement.

There is an additional fee if you elect the Death Benefit and/or the Income Enhancement Benefit option(s) under the rider. If you elect the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) is lower. Furthermore, if you elect the Joint Life option in combination with the Death Benefit and/or the

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Income Enhancement Benefit option(s), then the fee for each of those additional options will be different than under the Single Life option. See “Retirement Income Choice^® 1.4 Rider and Additional Option Fees”.

1. Death Benefit. If you elect this rider, you can also elect to add an additional amount to the death benefit payable under the base policy, upon the death of the annuitant (or if the joint life option is selected, the annuitant’s spouse). The additional amount will be equal to the excess, if any, of the rider death benefit over the greater of any optional guaranteed minimum death benefit or the base policy death benefit. The additional amount can be zero. See “Section 8. Death Benefit.”

Rider Death Benefit. The rider death benefit on the rider date is the policy value (less any premium enhancement if the rider is added in the first policy year). After the rider date, the rider death benefit is equal to:

• the rider death benefit on the rider date; plus

• subsequent premium payments; less

• adjustments for withdrawals (as described under “Rider Death Benefit Adjustments,” below).

Rider Death Benefit Adjustments. Gross partial withdrawals up to the rider withdrawal amount in a rider year will reduce the rider death benefit on a dollar-for-dollar basis. Gross partial withdrawals in excess of the rider withdrawal amount in a rider year will reduce the rider death benefit by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in policy value), and possibly to zero. See “Appendix – Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders – Retirement Income Choice^® 1.2 Rider and Retirement Income Choice^® 1.4 Rider” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that results in pro rata adjustments. Rider death benefit adjustments occur immediately following all withdrawals.

Please note:

• No additional death benefit is payable if the base policy death benefit (including the guaranteed minimum death benefit) exceeds the rider death benefit. The greater the death benefit payable under the guaranteed minimum death benefit selected, the more likely it is that an additional amount will not be payable under the rider death benefit option.

• Excess withdrawals may eliminate the additional death benefit available with this rider. You will continue to pay the fee for this option, even if the additional death benefit available under the rider is $0.

• Manual upgrades to the withdrawal base will result in a recalculation of the rider death benefit. However, automatic step-ups will not reset the rider death benefit.

• If an owner who is not the annuitant dies and the surviving spouse continues the policy, then no additional amount is payable. If the policy is not continued, then the surviving owner (who is also the sole beneficiary) may elect to receive lifetime annuity payments equal to the rider withdrawal amount divided by the number of payments each year instead of receiving the policy’s cash value. Please note that under federal tax law, upon the death of an owner, only a “spouse” as defined under the Federal Defense of Marriage Act is permitted to continue a policy without taking required distributions. (The payment of a death benefit under the policy is triggered by the death of the annuitant.)

The additional death benefit payment option may be referred to as “minimum remaining withdrawal amount” on your policy statement and other documents.

2. Joint Life Benefit. If you elect this rider, then you can also elect to postpone termination of the rider until the later of the annuitant or annuitant’s spouse’s death (only if the annuitant’s spouse continues the policy).

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Please note:

• The withdrawal percentage for each “age at the time of first withdrawal” is lower if you elect this option.

• The annuitant’s spouse must be either a joint owner along with the annuitant or the sole primary beneficiary (and there is no joint owner), if you elect this option.

• A former spouse of the annuitant cannot continue to keep the policy in force if no longer married to the annuitant at the time of the annuitant’s death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.

• The annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.

• The rider withdrawal percentage is based on the age of the younger of the annuitant and annuitant’s spouse, if you elect this option.

• The rider death benefit is not payable until the death of the surviving spouse, if you elect this option.

• You cannot elect a manual upgrade if the annuitant or annuitant’s spouse is 86 or older (lower if required by state law).

3. Income Enhancement Option. If you elect this rider, you can also elect to have your withdrawal percentage double if either the annuitant (or the annuitant’s spouse if the joint life option is elected) is confined, due to a medical necessity in a hospital or nursing facility due to physical or cognitive ailments. Benefits from this option are not available unless the rider has been in effect for 12 months (the “waiting period”) and confinement must meet the elimination period of 180 days within the last 365 days. The elimination period and waiting period can, but do not need to, run concurrently.

Please note:

• You cannot elect the Income Enhancement Option if the individual(s) is/are already confined in a hospital or nursing facility.

• Confinement must be prescribed by a physician based on the individual’s inability to sustain themselves outside of a hospital or nursing facility due to physical or cognitive ailments.

• The increase to the withdrawal percentage stops when the qualifying person or persons is/are no longer confined as described above.

• The hospital and/or nursing facility must meet the criteria listed below to qualify for the benefit.

• You cannot elect the Income Enhancement Option if you are confined in an assisted living facility or a residential care facility.

A Qualifying Hospital must meet the following criteria:

• It is operated pursuant to the laws of the jurisdiction in which it is located;

• It is operated primarily for the care and treatment of sick and injured persons on an inpatient basis;

• It provides 24-hour nursing service by or under the supervision of registered graduate professional nurses;

• It is supervised by a staff of one or more licensed physicians; and

• It has medical, surgical and diagnostic facilities or access to such facilities.

A Qualifying Nursing Facility must meet the following criteria:

• It is operated pursuant to the laws and regulations of the state in which it is located as a nursing facility or Alzheimer’s disease facility;

• It provides care performed or supervised by a registered graduate nurse;

• It provides room and board accommodations; and

• Will provide 24-hour nursing services, 7 days a week by an on-site Registered Nurse and related services on a continuing inpatient basis.

• It has a planned program of policies and procedures developed with the advice of, and periodically reviewed by, at least one physician; and

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• It maintains a clinical record of each patient.

A Qualifying Nursing Facility does not include:

• Assisted living facilities or residential care facilities;

• A place primarily for treatment of mental or nervous disorders, drug addiction or alcoholism;

• A home for the aged, a rest home, community living center or a place that provides domestic, resident, retirement or educational care;

• Personal care homes, personal care boarding homes, residential or domiciliary care homes;

• A rehabilitation hospital or basic care facilities;

• Adult foster care facilities, congregate care facilities, family and group living assisted living facilities; or

• Other facilities similar to those described above.

We will require confirmation of confinement in a qualifying hospital or a qualifying nursing facility while benefit payouts are being received. Confirmation of that confinement will be attained and approved by completing our “Income Enhancement Election and Proof of Confinement Questionnaire” form. This form requires additional proof of confinement which may be a physician’s statement, a statement from a hospital or nursing facility administrator, or any other information satisfactory to us which may include information from third party or company interviews and/or visits of the facility. If it is determined that the qualifying individual was not confined in an eligible facility as defined above and has received payments under the Income Enhancement Option, those payments could be considered an excess withdrawal and have a negative effect on the rider values. If confinement ceases, you may re-qualify by satisfying another 180-day elimination period requirement.

Retirement Income Choice^® 1.4 Fees

Retirement Income Choice^® 1.4 Base Rider Fee. The base rider fee is calculated on the rider date and at the beginning of each rider quarter. The base rider fee will be adjusted for any premium additions, excess withdrawals, or transfers between designated investment groups during the rider quarter. It will be deducted automatically from your policy value at the end of each rider quarter.

On an annual basis, in general terms, the base rider fee is the applicable “rider fee percentage” (see the Fee Table) times the withdrawal base.

The base quarterly fee is calculated by multiplying (A) by (B) divided by (C) multiplied by (D), where:

(A) is the withdrawal base;

(B) is the sum of each designated investment group’s rider fee percentage multiplied by the applicable designated investment group’s value;

(C) is the total policy value; and

(D) is the number of remaining days in the rider quarter divided by the total number of days in the applicable rider year.

We will assess a prorated rider fee upon termination of the rider for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

Beginning on the fifth rider anniversary, the rider fee percentage may increase (or decrease) at the time of an automatic step-up. Each time an automatic step-up will result in a rider fee percentage increase, you will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that you do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection, in good order, at our Administrative and Service Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

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Please note regarding the base rider fee:

• Because the base rider fee is a percentage of the withdrawal base, it could be a much higher percentage of your policy value, particularly in the event that your policy value decreases significantly.

• Because the base rider fee is a percentage of the withdrawal base, the amount of the base rider fee we deduct will increase if the withdrawal base increases (although the percentage(s) may remain the same).

• If you make a transfer from one designated allocation group to another designated allocation group that has a higher rider fee percentage, then the resulting rider fee will be higher.

Base Rider Fee Adjustment for Transfers. For transfers that you make between different designated investment options in different designated allocation groups on other than the first business day of a rider quarter, a “rider fee adjustment” will be applied. This adjustment is necessary because of differences in the rider fee percentages. The adjustment in the rider fee percentage will ensure that you are charged the correct overall rider fee. The base rider fee adjustment will be calculated using the same formula as the base rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be allocated.

Base Rider Fee Adjustment for Premium Payments and Excess Withdrawals. A rider fee adjustment will also be calculated for subsequent premium payments and excess withdrawals because these events will change the withdrawal base. The rider fee adjustment will be calculated using the same formula as the base rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. As with the rider fee adjustments calculated for transfers, the rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

Additional Option Fees. If you elect options with this rider, then you will be charged a fee for each option you elect that is in addition to the rider fee for the base benefit (see the Fee Table). Each additional fee is charged quarterly before annuitization and is a percentage of the withdrawal base on each rider anniversary.

We will also deduct all rider fees pro rata upon full surrender of the policy or other termination of the rider.

Retirement Income Choice^® 1.4 Rider Issue Requirements

The Company will not issue the Retirement Income Choice^® 1.4 rider unless:

• the annuitant is not yet age 86 (lower if required by state law);

• the annuitant is also an owner (except in the case of non-natural owners);

• there are no more than two owners; and

• if the joint life option is elected, the annuitant’s spouse is also not yet 86 (lower if required by state law) and (1) is a joint owner along with the annuitant or (2) is the sole primary beneficiary (and there is no joint owner).

Termination

The Retirement Income Choice^® 1.4 rider and any additional options will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;

• the death of the annuitant (or if the joint life option was elected, the death of the annuitant’s spouse if that spouse continued the policy as the surviving spouse);

• annuitization (however, if you have reached your maximum annuity commencement date you

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may choose an annuitization option which guarantees you lifetime payments in an amount equal to your rider withdrawal amount);

• the date the policy to which this rider is attached is assigned or the owner is changed without our approval;

• the date an excess withdrawal reduces your policy value to zero; or

• termination of your policy.

Please note: This rider terminates upon annuitization and there is a maximum annuity commencement date at which time your policy will be annuitized according to its terms. However, if you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments which are at least equal to your rider withdrawal amount. Please contact us for more information concerning your options.

The Retirement Income Choice^® 1.4 rider and additional options may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Retirement Income Choice^® 1.4 rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Income Link^SM Rider

You may elect to purchase the optional Income Link^SM rider which, provides you with: (1) a guaranteed lifetime withdrawal benefit that uses a higher withdrawal percentage for a defined period of time and then resets to a lower percentage (see the “Withdrawal Options and Percentages” section); and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that you allocate 100% of your policy value in certain designated investment choices which are designed to help manage the Company’s risk and support the guarantees under the rider. The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Income Link^SM rider for a qualified policy. The date this rider is added to your policy is the “rider date.” You choose the date of the first Income Link^SM rider systematic withdrawal, which is the Income Link^SM rider start date.

Income Link^SM Rider – Base Benefit

Under this benefit, you can receive up to the rider withdrawal amount each Income Link^SM rider withdrawal year (first as systematic withdrawals from your policy value and, if necessary, as systematic payments from us), beginning on the Income Link^SM rider start date and lasting until the annuitant’s death (unless your withdrawal base is reduced to zero because of a non-Income Link^SM rider systematic withdrawal; see Withdrawal Base Adjustments below). The first Income Link^SM rider withdrawal year begins on the Income Link^SM rider start date and each successive Income Link^SM rider withdrawal year begins thereafter on each anniversary of that date.

Income Link^SM Rider – Systematic Withdrawals. In order to begin receiving Income Link^SM rider systematic withdrawals, you must elect the withdrawal option and frequency (monthly, quarterly, semi-annually or annually) through which you will receive the Income Link^SM rider systematic withdrawals (for qualified policies you will also have to elect whether or not to receive your minimum required distribution amount as calculated herein). Any change to the frequency of your Income Link^SM rider systematic withdrawals will take effect at the beginning of the next Income Link^SM rider withdrawal year. Any other withdrawal, regardless of amount or timing, is a non-Income Link^SM rider systematic withdrawal. See “Withdrawal Base Adjustments”.

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Of course, you can always withdraw any amount up to your cash value pursuant to your rights under the policy at your discretion however, withdrawals other than Income Link^SM rider systematic withdrawals (and certain minimum required distributions) will reduce the withdrawal base. See the “Appendix – Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders – Income Link^SM Rider” for an example showing the effect of a hypothetical withdrawal in more detail.

Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider to allow for Income Link^SM rider systematic withdrawals from your policy value each Income Link^SM rider withdrawal year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the rider withdrawal amount or on a non-systematic basis, because such withdrawals may significantly reduce or eliminate the value of the guarantees provided by the rider.

• Depending on which withdrawal option you elect, your withdrawal percentage will decrease after second, third, fourth, fifth, sixth or seventh withdrawal year.

• The longer you wait to start taking Income Link^SM rider systematic withdrawals under the rider, the less time you have to benefit from the guarantee because of decreasing life expectancy as you age. You should carefully consider when to begin making withdrawals. There is a risk that you will not begin making withdrawals at the most financially beneficial time for you.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular Income Link^SM rider systematic withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All policy value must be allocated to a limited number of specified funds. You should consult with your registered representative to assist you in determining whether these certain investment options are suited for your financial needs and risk tolerance.

• Any withdrawal that is not an Income Link^SM rider systematic withdrawal (or certain minimum required distributions) will decrease the withdrawal base; the impact may be on a greater than dollar-for-dollar basis.

• During any Income Link^SM rider withdrawal year, if there is a withdrawal base adjustment, the remaining rider withdrawal amount and the Income Link^SM rider systematic withdrawal amount will increase or decrease by the same percentage as the withdrawal base.

• Upon the death of the annuitant (or the death of the surviving spouse if the joint option is elected), the Income Link^SM rider terminates and all benefits thereunder cease.

• The only way to receive withdrawals (either Income Link^SM rider systematic withdrawals or minimum required distributions) without causing an adjustment to the withdrawal base is to use the Income Link^SM rider systematic withdrawal programs.

Like all withdrawals, Income Link^SM rider systematic withdrawals while this rider is in effect also:

• reduce your policy value;

• reduce the amount you can withdraw “adjustment free” as a minimum required distribution;

• reduce your base policy death benefit and other benefits;

• may be subject to excess interest adjustment;

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• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Withdrawal Amount. You can withdraw up to the rider withdrawal amount systematically each Income Link^SM rider withdrawal year from your policy value without causing an adjustment. See “Withdrawal Base Adjustments” below. You must use a systematic withdrawal program to withdraw your rider withdrawal amount. Such withdrawals are Income Link^SM rider systematic withdrawals. Any withdrawal other than an Income Link^SM rider systematic withdrawal is considered a non-Income Link^SM rider systematic withdrawal and will result in a withdrawal base adjustment (except for certain minimum required distributions, see “Minimum Required Distribution”).

The annual rider withdrawal amount is zero until Income Link^SM rider start date. On the Income Link^SM rider start date and at the beginning of each Income Link^SM rider withdrawal year thereafter, the annual rider withdrawal amount is equal to the applicable withdrawal percentage (based on the withdrawal option you elect) multiplied by the withdrawal base. During any Income Link^SM rider withdrawal year, the rider withdrawal amount and Income Link^SM rider systematic withdrawal amount may be adjusted up or down as described in the Withdrawal Base Adjustment section.

Minimum Required Distribution: Prior to the Income Link^SM rider start date, the systematic withdrawal of the minimum required distribution amount (determined as set forth below) will not cause an adjustment. After the Income Link^SM rider start date, the withdrawal of the minimum required distribution amount (determined as set forth below) will not cause an adjustment to the withdrawal base; however, it must be withdrawn pursuant to an Income Link^SM rider systematic withdrawal program whereby you will receive your Income Link^SM rider systematic withdrawals and any remaining minimum required distribution amount as calculated herein distributed at the end of the applicable calendar year (not at the end of the applicable rider year).

If the plan participant (generally the annuitant) is at least 70 ¹/2 years old, you can withdraw via a systematic withdrawal option, an amount equal to any minimum required distribution amount (for the tax year on that rider anniversary) calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (prior to the first rider anniversary we use the policy value on the rider date and thereafter we use the policy value on the date prescribed by the IRS) and (4) amounts from the current calendar year (no carry-over from past years). Minimum required distribution amounts calculated as set forth above and taken via a systematic withdrawal option will not cause an adjustment under this provision of the rider. Any withdrawal during a calendar year will reduce the withdrawal base adjustment free minimum required distribution amount for that year.

Please note: If you want to change the mode of the systematic withdrawal through which you are receiving your “adjustment free” minimum required distribution, your change will not take effect until the next anniversary of your systematic withdrawal program. Likewise, if you stop a systematic withdrawal program you cannot restart a new systematic program until the date that would have been the anniversary of the systematic withdrawal program you stopped. (For example, if you started a monthly systematic withdrawal program to receive your “adjustment free” minimum required distribution amount on August 19, 2010, and stopped it on December 21, 2010, you could not restart a new systematic withdrawal program until August 19, 2011.)

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If your policy value reaches zero, then you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits guaranteed by this rider after your policy value reaches zero, you must select the amount and frequency of future payments. Once selected, the amount and frequency cannot be changed.

Please note:

• The rider withdrawal amount will be zero until the Income Link^SM rider start date, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your rider withdrawal amount that is not withdrawn during an Income Link^SM rider withdrawal year for withdrawal in a future Income Link^SM rider withdrawal year. This means that if you do not take the entire rider withdrawal amount during an Income Link^SM rider withdrawal year, you cannot take more than the rider withdrawal amount in the next Income Link^SM rider withdrawal year and maintain the rider’s guarantees.

• Non-Income Link^SM rider systematic withdrawals may cause you to lose the benefit of the rider.

• All policy value must be allocated to a limited number of specified funds. (See “Designated Investment Options.”)

Withdrawal Options and Percentages. We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the withdrawal option you select. The withdrawal percentages, categorized by withdrawal option, are as follows:

Withdrawal Option— number years at increased rate	Withdrawal Percentage— Single Life Option	Withdrawal Percentage— Joint Life Option
7 years	5% for 7 years and 4% thereafter	4.5% for 7 years and 3.5% thereafter
6 years	6% for 6 years and 4% thereafter	5.5% for 6 years and 3.5% thereafter
5 years	7% for 5 years and 4% thereafter	6.5% for 5 years and 3.5% thereafter
4 years	8% for 4 years and 4% thereafter	7.5% for 4 years and 3.5% thereafter
3 years	9% for 3 years and 4% thereafter	8.5% for 3 years and 3.5% thereafter
2 years	10% for 2 years and 4% thereafter	9.5% for 2 years and 3.5% thereafter

Please note, once established, the withdrawal percentage will not increase.

Withdrawal Base. We use the withdrawal base to calculate the rider withdrawal amount. The withdrawal base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to non-Income Link^SM rider systematic withdrawals.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

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• Because the withdrawal base is generally equal to the policy value on the rider date, the rider withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

On each rider anniversary, the withdrawal base will equal the greater of:

• current withdrawal base or;

• the Automatic Step-up amount (see “Automatic Step-Up” below).

Automatic Step-Up. On each rider anniversary, we will automatically step-up the withdrawal base to an amount equal to the greater of (1) the highest policy value on any monthiversary during the preceding rider year, if no non-Income Link^SM rider systematic withdrawal occurred, or (2) the policy value on the rider anniversary.

The rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum rider fee percentage in the fee table.

Please note:

• The withdrawal base “steps-up” on rider anniversaries whereas a Income Link^SM rider withdrawal year begins on the Income Link^SM rider start date and each anniversary thereof.

• If an automatic step-up occurs, your remaining rider withdrawal amount and Income Link^SM rider systematic withdrawal amount is proportionally increased for the remainder of that Income Link^SM rider withdrawal year.

Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, you have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that you do so within 30 days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection (each time you elect to opt out), in good order, at our Administrative and Service Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Withdrawal Base Adjustments. Premium additions will increase the withdrawal base on a dollar-for-dollar basis. See “Automatic Step-Up” for a description of how automatic step-ups increase the withdrawal base.

Income Link^SM rider systematic withdrawals up to the rider withdrawal amount will not reduce the withdrawal base. Non-Income Link^SM rider systematic withdrawals will reduce the withdrawal base, however, by the greater of the dollar amount of the withdrawal (if the policy value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the policy value when the policy value is less than the withdrawal base), possibly to zero. See “Appendix – Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders -Income Link^SM Rider” for examples showing the effect of hypothetical withdrawals in more detail. The effect of a negative adjustment is amplified if the policy value is less than the withdrawal base. See the “Appendix – Guaranteed Lifetime Benefit Adjustment Partial Surrenders – Income Link^SM Rider” for examples showing the effect of hypothetical non-Income Link^SM rider systematic withdrawals in more detail, including a non-Income Link^SM rider systematic withdrawal that reduces the withdrawal base by a pro rata amount. Withdrawal base adjustments occur immediately following premium additions or non-Income Link^SM rider systematic withdrawals. If you take a non-Income Link^SM rider systematic withdrawal that reduces your policy value (and withdrawal base) to zero, then the Income Link^SM rider will terminate and you will lose all its benefits.

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Please Note: We do not monitor for non-Income Link^SM rider systematic withdrawals or notify you of withdrawal base adjustments. If you take a non-Income Link^SM rider systematic withdrawal please note your Income Link^SM rider systematic withdrawal amount will be reduced.

Designated Investment Options. If you elect this rider, you must designate 100% of your policy value into one or more of the designated investment options:

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

American Funds - Bond Fund – Class 2

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica AEGON Money Market VP – Service Class

Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica Index 35 VP – Service Class

Transamerica Madison Conservative Allocation VP – Service Class

Transamerica PIMCO Real Return TIPS VP – Service Class

Transamerica PIMCO Total Return VP – Service Class Fixed Account

Transfers between the designated investment options are allowed as permitted under the policy; however, you cannot transfer any amount (or allocate premium payments) to any non-designated investment option. Following the fifth rider anniversary you can terminate this rider. Starting the next business day, you may transfer (or allocate premium payments) to a non-designated investment option. Terminating the rider will result in losing all your benefits under the rider.

Please note:

• The earliest you can transfer (or allocate premium payments) to a non-designated investment option is the first business day after the fifth rider anniversary. You will be required to terminate the rider first (and lose its benefits).

• We can eliminate a designated investment option at any time. If this occurs, then a policy owner will be required to reallocate values in the affected designated investment options to other designated investment options that meet the allocation requirements.

Income Link^SM Rider – Joint Life Option

If you elect this rider, then you can also elect to postpone termination of the rider until the later of the annuitant or annuitant’s spouse’s death (only if the annuitant’s spouse continues the policy).

If you elect the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) is lower.

Please note:

• The withdrawal percentage for each withdrawal option is lower if you elect this option.

• The annuitant’s spouse must be either a joint owner along with the annuitant or the sole primary beneficiary (and there is no joint owner), if you elect this option.

• A former spouse of the annuitant cannot continue to keep the policy in force if no longer married to the annuitant at the time of the annuitant’s death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.

• The annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.

Income Link^SM Rider Fees

Income Link^SM Rider Fee. The rider fee is calculated on the rider date and at the beginning of each rider quarter. The rider fee will be adjusted for any premium additions and non-Income Link^SM rider

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systematic withdrawals during the rider quarter. It will be deducted automatically from your policy value at the end of each rider quarter.

On an annual basis, in general terms, the rider fee is the applicable “rider fee percentage” (see the Fee Table) times the withdrawal base.

The quarterly fee is calculated by multiplying (A) by (B) by (C), where:

(A) is the withdrawal base;

(B) rider fee percentage; and

(C) is the number of remaining days in the rider quarter divided by the total number of days in the applicable rider year.

We will assess a prorated rider fee upon termination of the rider for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

Beginning on the first rider anniversary, the rider fee percentage may increase (or decrease) at the time of an automatic step-up. Each time an automatic step-up will result in a rider fee percentage increase, you will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that you do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection, in good order, at our Administrative and Service Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Please note regarding the rider fee:

• Because the rider fee is a percentage of the withdrawal base, it could be a much higher percentage of your policy value, particularly in the event that your policy value decreases significantly.

• Because the rider fee is a percentage of the withdrawal base, the amount of the rider fee we deduct will increase if the withdrawal base increases (although the percentage will remain the same).

Rider Fee Adjustment for Withdrawal Base Adjustments. A rider fee adjustment will also be calculated for subsequent premium payments and non-Income Link^SM rider systematic withdrawals because these events will change the withdrawal base. The rider fee adjustment will be calculated using the same formula as the rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

We will also deduct the rider fee pro rata upon full surrender of the policy or other termination of the rider.

Income Link^SM Rider Issue Requirements

The Company will not issue the Income Link^SM rider unless:

• the annuitant is at least 55 years old and not yet 81 years old (lower if required by state law);

• the annuitant is also an owner (except in the case of non-natural owners);

• there are no more than two owners; and

• if the joint life option is elected, the annuitant’s spouse is at least 55 years old and not yet 81 years old (lower if required by state law) and (1) is a joint owner along with the annuitant or (2) is the sole primary beneficiary (and there is no joint owner).

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Termination

The Income Link^SM rider will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the rider if such notice is received by us following the fifth rider anniversary;

• the death of the annuitant (or if the joint life option was elected, the death of the annuitant’s spouse if that spouse continued the policy as the surviving spouse);

• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your rider withdrawal amount);

• the date the policy to which this rider is attached is assigned or if the owner is changed without our approval;

• the date an excess withdrawal reduces your policy value to zero; or

• termination of your policy.

Please note: This rider terminates upon annuitization and there is a maximum annuity commencement date at which time your policy will be annuitized according to its terms. However, if you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments which are at least equal to your rider withdrawal amount. Please contact us for more information concerning your options.

The Income Link^SM rider may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Income Link^SM rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

Retirement Income Max^SM Rider

You may elect to purchase the optional Retirement Income Max^SM rider which, provides you with: (1) a guaranteed lifetime withdrawal benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that you allocate 100% of your policy value in certain designated investment choices which are designed to help manage the Company’s risk and support the guarantees under the rider. The tax rules for qualified policies may limit the value of this rider. Please consult a qualified tax advisor before electing the Retirement Income Max^SM rider for a qualified policy. If you elect the Retirement Income Max^SM rider you cannot elect another GLWB.

Retirement Income Max^SM – Base Benefit

Under this benefit, you can receive up to the rider withdrawal amount each rider year (first as withdrawals from your policy value and, if necessary because your policy value goes to zero by other than an excess withdrawal, as payments from us for life), starting with the rider year immediately following the annuitant’s (or the annuitant’s spouse if younger and the joint life option is elected) 59th birthday and lasting until the annuitant’s (or surviving spouse’s if the joint life option is elected) death (unless your withdrawal base is reduced to zero because of an “excess withdrawal”; see Withdrawal Base Adjustments, below). A rider year begins on the rider date and thereafter on each anniversary of that date.

Of course, you can always withdraw an amount up to your cash value pursuant to your rights under the policy at your discretion.

See the “Appendix – Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders -Retirement Income Max^SM Rider” for examples showing the effect of hypothetical withdrawals in more detail.

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Please note:

• You will begin paying the rider charge as of the date the rider takes effect, even if you do not begin taking withdrawals for many years, or ever. We will not refund the charges you have paid under the rider if you never choose to take withdrawals and/or if you never receive any payments under the rider.

• We have designed this rider to allow for withdrawals from your policy value each rider year that are less than or equal to the rider withdrawal amount. You should not purchase this rider if you plan to take withdrawals in excess of the rider withdrawal amount, because such excess withdrawals may significantly reduce or eliminate the value of the guarantee provided by the rider.

• The longer you wait to start making withdrawals under the benefit, the less time you have to benefit from the guarantee because of decreasing life expectancy as you age. On the other hand, the longer you wait to begin making withdrawals, the higher your withdrawal percentage may be, the higher the withdrawal base due to growth may be, and the more opportunities you will have to lock in a higher withdrawal base. You should carefully consider when to begin making withdrawals. There is a risk that you will not begin making withdrawals at the most financially beneficial time for you.

• Because the guaranteed lifetime withdrawal benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for you if you do not foresee a need for liquidity and your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All policy value must be allocated to a limited number of specified funds. You should consult with your registered representative to assist you in determining whether these certain investment options are suited for your financial needs and risk tolerance.

• Cumulative withdrawals in any rider year that are in excess of the rider withdrawal amount are excess withdrawals.

• An excess withdrawal may impact the withdrawal base on a greater than dollar-for-dollar basis.

• Upon the death of the annuitant (or the death of the surviving spouse if the joint option is elected), the Retirement Income Max^SM rider terminates and all benefits thereunder cease.

Like all withdrawals, withdrawals while this rider is in effect also:

• reduce your policy value;

• reduce your base policy death benefit and other benefits;

• may be subject to excess interest adjustment;

• may be subject to income taxes and federal tax penalties; and

• may be limited or restricted under certain qualified policies.

Rider Withdrawal Amount. You can withdraw up to the rider withdrawal amount in any rider year (after age 59) from your policy value without causing an excess withdrawal. See “Withdrawal Base Adjustments” below.

The rider withdrawal amount is zero if the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is not 59 years old on the rider date and remains zero until the first day of the rider year after the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) 59th birthday. If the annuitant (or the annuitant’s spouse if younger and the joint life option is elected) is at least 59 years old on the rider date, then the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage (see below).

For qualified policies: If the plan participant (generally the annuitant) is at least 70 ¹/2 years old, the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

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• the rider withdrawal amount described above; or

• an amount equal to any minimum required distribution amount (for the tax year on that rider anniversary) calculated using only: (1) the living annuitant’s age, (2) the IRS Uniform Lifetime table or, if applicable, the Joint Life and Survivor Expectancy table, (3) the policy value of the base policy, (prior to the first rider anniversary we use the policy value on the rider date and thereafter we use the policy value on the date prescribed by the IRS) and (4) amounts from the current calendar year (no carry-over from past years).

Only amounts calculated as set forth above can be used as the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider. See “Appendix – Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders – Retirement Income Max^SM Rider” for an example showing the effect of a minimum required distribution amount.

If your policy value reaches zero:

• due to a non-excess withdrawal, then you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. In order to receive benefits guaranteed by this rider after your policy value reaches zero, (i.e., payments of the rider withdrawal amount for life) you must select the amount and frequency of future payments. Once selected, the amount and frequency cannot be changed.

• due to an excess withdrawal, then this rider terminates (as does the policy).

Please note:

• If the rider is added prior to the annuitant’s 59th birthday, the rider withdrawal amount will be zero until the beginning of the rider year after the annuitant’s 59th birthday, however, you will still be charged a rider fee prior to this time.

• You cannot carry over any portion of your rider withdrawal amount that is not withdrawn during a rider year for withdrawal in a future rider year. This means that if you do not take the entire rider withdrawal amount during a rider year, you cannot take more than the rider withdrawal amount in the next rider year and maintain the rider’s guarantees.

• Excess withdrawals may cause you to lose the benefit of the rider.

• All policy value must be allocated to a limited number of specified funds. (See “Designated Investment Options.”)

Withdrawal Percentage. We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) 59th birthday. The withdrawal percentage is as follows:

Age at time of first withdrawal	Withdrawal Percentage— Single Life Option			Withdrawal Percentage— Joint Life Option
0-58		0.0	%		0.0	%
59-64		4.5	%		4.10	%
65-74		5.5	%		5.10	%
³75		6.5	%		6.10	%

Please note, once established, the withdrawal percentage will not generally increase even though the annuitant’s age increases except in certain instances involving automatic step-ups.

Withdrawal Base. We use the withdrawal base to calculate the rider withdrawal amount. The withdrawal base on the rider date is the policy value

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(less any premium enhancement, if the rider is added in the first policy year). During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to excess withdrawals.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount. Your withdrawal base is not a cash value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any subaccount, and it is not a guarantee of policy value.

• Because the withdrawal base is generally equal to the policy value on the rider date, the rider withdrawal amount may be lower if you delay electing the rider and the policy value decreases before you elect the rider.

On each rider anniversary, the withdrawal base will equal the greatest of:

• current withdrawal base;

• the withdrawal base immediately before the rider anniversary, increased by the growth credit, if any (see “Growth” below);

• the policy value on any monthiversary^SM , (the same day of the month as the rider date, or the next business day if our Administrative Office or the New York Stock Exchange are closed) including the current rider anniversary (see “Automatic Step-Up” below).

See “Appendix – Hypothetical Example of the Withdrawal Base Calculation – Retirement Income Max^SM Rider” which illustrates the hypothetical example of the withdrawal base calculation.

Growth. On each of the first ten rider anniversaries, we will add an annual growth credit to your withdrawal base if no withdrawal occurred during the preceding rider year. The annual growth credit is equal to 5.0% of the withdrawal base immediately before the rider anniversary (i.e., withdrawal base x 0.05) .

Please note: Because a withdrawal will eliminate a potential growth credit for that rider year, you should consider your need or possible need to take withdrawals within the first 10 rider years in deciding whether to purchase the rider.

Automatic Step-Up. On each rider anniversary, we will automatically step-up the withdrawal base to an amount equal to the greater of (1) the highest policy value on any monthiversary^SM during the preceding rider year, if no excess withdrawal occurred, or (2) the policy value on the rider anniversary. This comparison takes place after the application of any applicable annual growth credit. The withdrawal percentage (as indicated in the withdrawal percentage table) will also increase if you have crossed into another age band prior to the automatic step-up.

On each rider anniversary the rider fee percentage may increase (or decrease) up to 75 basis points (0.75%) at the time of any automatic step-up (but will not exceed the maximum rider fee percentage in the fee table), i.e., the rider fee percentage is reset to the rider fee percentage then associated with newly issued riders.

Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, you have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentage, and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that you do so within 30 days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection (each time you elect to opt out), in good order, at our Administrative and Service Office within the same 30 day period after the rider

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anniversary on which the automatic step-up occurred. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Withdrawal Base Adjustments. Cumulative gross partial withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Cumulative gross partial withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal (if the policy value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the policy value when the policy value is less than the withdrawal base), possibly to zero. If an excess withdrawal reduces the policy value to zero, this rider will terminate. Withdrawal base adjustments occur immediately following excess withdrawals. See “Appendix – Guaranteed Lifetime Withdrawal Benefit Adjusted Partial Surrenders – Retirement Income Max^SM Rider” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base by a pro rata amount. The effect of an excess withdrawal is amplified if the policy value is less than the withdrawal base.

Please Note: We do not monitor for, or notify you of, excess withdrawals. If you take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because your otherwise regular or scheduled non-excess withdrawals may thereafter all be excess withdrawals that reduce or eliminate your benefit on an accelerated basis.

Designated Investment Options. If you elect this rider, you must designate 100% of your policy value into one or more of the designated investment options:

American Funds – Bond Fund – Class 2

Transamerica AEGON Money Market VP – Service Class

Transamerica AEGON U.S. Government Securities VP – Service Class

Transamerica AllianceBernstein Dynamic Allocation VP – Service Class

Transamerica Foxhall Global Conservative VP – Service Class

Transamerica Index 35 VP – Service Class

Transamerica Index 50 VP – Service Class

Transamerica Madison Balanced Allocation VP – Service Class

Transamerica Madison Conservative Allocation VP – Service Class

Transamerica Madison Diversified Income VP – Service Class

Transamerica PIMCO Real Return TIPS VP – Service Class

Transamerica PIMCO Total Return VP – Service Class Fixed Account

Transfers between the designated investment options are allowed as permitted under the policy; however, you cannot transfer any amount (or allocate premium payments) to any non-designated investment option. Within 30 days following the fifth rider anniversary (and each successive fifth rider anniversary), you can terminate this rider. Starting the next business day, you may transfer (or allocate premium payments) to a non-designated investment option. Terminating the rider will result in losing all your benefits under the rider.

Please note:

• The earliest you can transfer (or allocate premium payments) to a non-designated investment option is the first business day after the fifth rider anniversary. You will be required to terminate the rider first (and lose its benefits).

• We can eliminate a designated investment option at any time. If this occurs, then a policy owner will be required to reallocate values in the affected designated investment options to other designated investment options that meet the allocation requirements.

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Retirement Income Max^SM – Joint Life Option

If you elect this rider, then you can also elect to postpone termination of the rider until the later of the annuitant or annuitant’s spouse’s death (only if the annuitant’s spouse continues the policy). If you elect the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) is lower.

Please note:

• The annuitant’s spouse must be either a joint owner along with the annuitant or the sole primary beneficiary (and there is no joint owner), if you elect this option.

• A former spouse of the annuitant cannot continue to keep the policy in force if no longer married to the annuitant at the time of the annuitant’s death. In that event, the rider will terminate and no additional withdrawals under the rider will be permitted.

• The annuitant’s spouse for purposes of this rider cannot be changed to a new spouse.

• The rider withdrawal percentage is based on the age of the younger of the annuitant and annuitant’s spouse, if you elect this option.

• The withdrawal percentage for each “age at the time of the first withdrawal” is lower if you elect this option.

Retirement Income Max^SM Rider Fees

Retirement Income Max^SM. The rider fee is calculated on the rider date and at the beginning of each rider quarter. The rider fee will be adjusted for any premium additions and excess withdrawals. It will be deducted automatically from your policy value at the end of each rider quarter.

On an annual basis, in general terms, the rider fee is the “rider fee percentage” (see the Fee Table) times the withdrawal base. Specifically, the quarterly fee is calculated by multiplying (A) by (B) multiplied by (C), where:

(A) is the withdrawal base;

(B) is the rider fee percentage; and

(C) is the number of remaining days in the rider quarter divided by the total number of days in the applicable rider year.

Example 1: Calculation at rider issue for first quarter rider fee assuming an initial withdrawal base of $100,000.

=100,000*0.01(91/365)

=1,000*(91/365)

=$249.32

We will assess a prorated rider fee upon termination of the rider for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

On each rider anniversary the rider fee percentage may increase (or decrease) at the time of an automatic step-up. Each time an automatic step-up results in a rider fee percentage increase, you will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that you do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive your rejection, in good order, at our Administrative and Service Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Please note regarding the rider fee:

• Because the rider fee is a percentage of the withdrawal base, it could be a much higher percentage of your policy value, particularly in the event that your policy value decreases significantly.

• Because the rider fee is a percentage of the withdrawal base, the amount of the rider fee we

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deduct will increase if the withdrawal base increases (although the percentage(s) may remain the same).

Rider Fee Adjustment for Premium Payments and Excess Withdrawals. A rider fee adjustment will be calculated for subsequent premium payments and excess withdrawals because these events will change the withdrawal base. The rider fee adjustment will be calculated using the same formula as the rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

Example 2: Calculation for first quarter fee assuming initial withdrawal base from Example 1 above, plus adjustment for additional premium payment of $10,000 made with 20 days remaining in the first rider quarter. The withdrawal base change equals $10,000. Fee adjustment as follows:

=10,000*0.01(20/365)

=100*(20/365)

=$5.48

Total fee assessed at the end of the first rider quarter (assuming no further rider fee adjustments):

=5.48 + 249.32

=$254.80

We will also deduct all rider fees pro rata upon full surrender of the policy or other termination of the rider.

Retirement Income Max^SM Rider Issue Requirements

The Company will not issue the Retirement Income Max^SM rider unless:

• The annuitant is not yet age 86 (lower if required by state law);

• the annuitant is also an owner (except in the case of non-natural owners);

• there are no more than two owners; and

• if the joint life option is elected, the annuitant’s spouse is also not yet 86 (lower if required by state law) and (1) is a joint owner along with the annuitant or (2) is the sole primary beneficiary (and there is no joint owner).

Termination

The Retirement Income Max^SM rider will terminate upon the earliest of the following:

• the date we receive written notice from you requesting termination of the rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;

• the death of the annuitant (or if the joint life option was elected, the death of the annuitant’s spouse if that spouse continued the policy as the surviving spouse);

• annuitization (however, if you have reached your maximum annuity commencement date you may choose an annuitization option which guarantees you lifetime payments in an amount equal to your rider withdrawal amount);

• the date the policy to which this rider is attached is assigned or if the owner is changed without our approval;

• the date an excess withdrawal reduces your policy value to zero; or

• termination of your policy.

Please note: This rider terminates upon annuitization and there is a maximum annuity commencement date at which time your policy will be annuitized according to its terms. However, if you have reached your maximum annuity commencement date, we will allow you to annuitize your policy and elect to receive lifetime annuity payments which are at least equal to your rider withdrawal amount. Please contact us for more information concerning your options.

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The Retirement Income Max^SM rider and additional options may vary for certain policies, may not be available for all policies, and may not be available in all states. This disclosure explains the material features of the Retirement Income Max^SM rider. The application and operation of the rider are governed by the terms and conditions of the rider itself.

11. OTHER INFORMATION

Ownership

You, as owner of the policy, exercise all rights under the policy. You can change the owner at any time by notifying us in writing at our Administrative and Service Office. An ownership change may be a taxable event.

Beneficiary

The beneficiary designation will remain in effect until changed. The owner may change the designated beneficiary by sending written notice to the Company. The beneficiary’s consent to such change is not required unless the beneficiary was irrevocably designated or law requires consent. (If an irrevocable beneficiary dies, the owner may then designate a new beneficiary.) The change will take effect as of the date the owner signs the written notice, whether or not the owner is living when the notice is received by the Company. The Company will not be liable for any payment made before the written notice is received. If more than one beneficiary is designated, and the owner fails to specifiy their interests, they will share equally. If, upon the death of the annuitant, there is a surviving owner(s), then the surviving owner(s) automatically takes the place of any beneficiary designation.

Right to Cancel Period

You may return your policy for a refund, but only if you return it within a prescribed period, which is generally 10 days (after you receive the policy), or whatever longer time may be required by state law. The amount of the refund will generally be the premiums paid plus or minus accumulated gains or losses in the separate account. You bear the risk of any decline in policy value during the right to cancel period. However, if state law requires, we will refund your original premium payment(s). We will pay the refund within seven days after we receive in good order within the applicable period at our Administrative and Service Office, written notice of cancellation and the returned policy. The policy will then be deemed void.

Assignment

You can also generally assign the policy any time during your lifetime. We will not be bound by the assignment until we receive written notice of the assignment in good order at our Administrative and Service Office and approve it. We reserve the right, except to the extent prohibited by applicable laws, regulations, or actions of the State insurance commissioner, to require that an assignment will be effective only upon acceptance by us, and to refuse assignments or transfers at any time on a non-discriminatory basis. We will not be liable for any payment or other action we take in accordance with the policy before we approve the assignment. There may be limitations on your ability to assign a qualified policy. An assignment may have tax consequences.

Sending Forms and Transaction Requests in Good Order

We cannot process your requests for transactions relating to the policy until we have received them in good order at our Administrative and Service Office. “good order” means the actual receipt by us of the instructions relating to the requested transaction in writing (or, when appropriate, by telephone or electronically, along with all forms, information and supporting legal documentation necessary to effect the transaction. This information and documentation

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generally includes, to the extend applicable to the transaction: your completed application; the policy number; the transaction amount (in dollars or percentage terms); the names and allocations to and/or from the Subaccounts affected by the requested transaction; the signatures of all policy owners (exactly as registered on the Policy) if necessary; Social Security Number or Taxpayer I.D.; and any other information or supporting documentation that we may require, including any spousal or joint owner’s consents. With respect to purchase requests, “good order” also generally includes receipt (by us) of sufficient funds to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time.

Mixed and Shared Funding

Before making a decision concerning the allocation of premium payments to a particular subaccount, please read the prospectuses for the underlying fund portfolios. The underlying fund portfolios are not limited to selling their shares to this separate account and can accept investments from any insurance company separate account or qualified retirement plan. Since the underlying fund portfolios are available to registered separate accounts offering variable annuity products of the Company, as well as variable annuity and variable life products of other insurance companies, and qualified retirement plans, there is a possibility that a material conflict may arise between the interests of this separate account and one or more of the other separate accounts of another participating insurance company. In the event of a material conflict, the affected insurance companies, including the Company, agree to take any necessary steps to resolve the matter. This may include removing their separate accounts from the underlying fund portfolios. See the underlying fund portfolios prospectuses for more details.

Exchanges and Reinstatements

You can generally exchange one annuity policy for another in a “tax-free exchange” under Section 1035 of the Internal Revenue Code. Before making an exchange, you should compare both annuities carefully. Remember that if you exchange another annuity for the one described in this prospectus, then you may pay a surrender charge on the other annuity and other charges may be higher (or lower) and the benefits under this annuity may be different. You should not exchange another annuity for this one unless you determine, after knowing all the facts, that the exchange is in your best interest and not just better for the person trying to sell you this policy (that person will generally earn a commission if you buy this policy through an exchange or otherwise).

You may surrender your policy and transfer your money directly to another life insurance company (sometimes referred to as a 1035 Exchange or a trustee-to-trustee transfer). You may also ask us to reinstate your policy after such a transfer and in certain limited circumstances we will allow you to do so by returning the same total dollar amount of funds to the applicable investment choices. The dollar amount will be used to purchase new accumulation units at the then current price. Because of changes in market value, your new accumulation units may be worth more or less than the units you previously owned. We recommend that you consult a tax professional to explain the possible tax consequences of exchanges and/or reinstatements.

Voting Rights

To the extent required by law, the Company will vote all shares of the underlying fund portfolios held in the separate account in accordance with instructions we receive from you and other owners that have voting interests in the portfolios. We will send you and other owners requests for instructions on how to vote those shares. When we receive those instructions, we will vote all of the shares in

101

proportion to those instructions. Accordingly, it is possible for a small number of policy owners (assuming there is a quorum) to determine the outcome of a vote, especially if they have large policy values. If, however, we determine that we are permitted to vote the shares in our own right, we may do so.

Each person having a voting interest will receive proxy material, reports, and other materials relating to the appropriate portfolio.

Legal Proceedings

There are no legal proceedings to which the separate account is a party or to which the assets of the separate account are subject. The Company, like other life insurance companies, is involved in lawsuits. In some class action and other lawsuits involving other 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, the Company believes that at the present time there are no pending or threatened lawsuits that are reasonably likely to have a material adverse impact on the separate account, on the ability of Transamerica Capital, Inc., to perform under its principal underwriting agreement, or on the ability of the Company to meet its obligations under the policy.

Transamerica Life Insurance Company

Transamerica Life Insurance Company was incorporated under the laws of the State of Iowa on April 19, 1961 as NN Investors Life Insurance Company, Inc. It is engaged in the sale of life and health insurance and annuity policies. The Company 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, the securities of which are publicly traded. AEGON N.V., a holding company, conducts its business through subsidiary companies engaged primarily in the insurance business. The Company is licensed in the District of Columbia, Guam, Puerto Rico, the U.S. Virgin Islands, and all states except New York.

All obligations arising under the policies, including the promise to make annuity payments, are general corporate obligations of the Company. Accordingly, no financial institution, brokerage firm or insurance agency is responsible for the financial obligations of the Company arising under the policies.

Financial Condition of the Company

We pay benefits under your Contract from our general account assets and/or from your policy value held in the separate account. It is important that you understand that payments of the benefits depend upon certain factors discussed below.

Assets in the Separate Account. You assume all of the investment risk for your policy value that is allocated to the subaccounts of the separate account. Your policy value in those subaccounts constitutes a portion of the assets of the separate account. These assets are segregated and insulated from our general account, and may not be charged with liabilities arising from any other business that we may conduct.

Assets in the General Account. You also may be permitted to make allocations to guaranteed period options of the fixed account, which are supported by the assets in our general account. Any guarantees under a policy that exceed policy value, such as those associated with any lifetime withdrawal benefit riders and any optional death benefits, are paid from our general account (and not the separate account). Therefore, any amounts that we may be obligated to pay under the policy in excess of policy value are subject to our financial strength and claims-paying ability and our long-term ability to make such

102

payments. The assets of the separate account, however, are also available to cover the liabilities of our general account, but only to the extent that the separate account assets exceed the separate account liabilities arising under the policies supported by it.

We issue other types of insurance policies and financial products as well, and we also pay our obligations under these products from our assets in the general account.

Our Financial Condition. As an insurance company, we are required by state insurance regulation to hold a specified amount of reserves in order to meet all the contractual obligations of our general account. In order to meet our claims-paying obligation we monitor our reserves so that we hold sufficient amounts to cover actual or expected policy and claims payments. However, it is important to note that there are risks to purchasing any insurance product.

State insurance regulators also require insurance companies to maintain a minimum amount of capital, which acts as a cushion in the event that the insurer suffers a financial impairment, based on the inherent risks in the insurer’s operations. These risks include those associated with losses that we may incur as the result of defaults on the payment of interest or principal on our general account assets, which include bonds, mortgages, general real estate investments, and stocks, as well as the loss in market value of these investments.

How to Obtain More Information. We encourage both existing and prospective policy owners to read and understand our financial statements. We prepare our financial statements on a statutory basis. Our financial statements, which are presented in conformity with accounting practices prescribed or permitted by the Iowa Department of Commerce, Insurance Division as well as the financial statements of the separate account—are located in the statement of Additional Information (SAI). For a free copy of the SAI, simply call or write us at the phone number or address of our Administrative and Service Office referenced in this prospectus. In addition, the SAI’s available on the SEC;s website at http://www.sec.gov. Our financial strength can be found on our website.

The Separate Account

The Company established a separate account, called Separate Account VA B, under the laws of the State of Iowa on January 19, 1990. The separate account receives and invests the premium payments that are allocated to it for investment in shares of the underlying fund portfolios.

The separate account is registered with the SEC as a unit investment trust under the 1940 Act. However, the SEC does not supervise the management, the investment practices, or the policies of the separate account or the Company. Income, gains and losses (whether or not realized), from assets allocated to the separate account are, in accordance with the policies, credited to or charged against the separate account without regard to the Company’s other income, gains or losses.

The assets of the separate account are held in the Company’s name on behalf of the separate account and belong to the Company. However, those assets that underlie the policies are not chargeable with liabilities arising out of any other business the Company may conduct. The separate account may include other subaccounts that are not available under these policies.

Distribution of the Policies

Distribution and Principal Underwriting Agreement. We have entered into a principal underwriting agreement with our affiliate, Transamerica Capital, Inc. (TCI), for the distribution and sale of the policies. We pay commissions to TCI which are passed through to selling firms. (See below). We also pay TCI an “override” that is a

103

percentage of total commissions paid on sales of our policies which is not passed through to the selling firms and we may reimburse TCI for certain expenses it incurs in order to pay for the distribution of the policies. TCI markets the policies through bank affiliated firms, national brokerage firms, regional and independent broker-dealers and independent financial planners.

Compensation to Broker-Dealers Selling the Policies. The policies are offered to the public through broker-dealers (“selling firms”) that are licensed under the federal securities laws; the selling firm and/or its affiliates are also licensed under state insurance laws. The selling firms have entered into written selling agreements with us and with 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 the selling firms. We also provide compensation to a limited number of broker-dealers for providing ongoing service in relation to the policies that have already been purchased.

The selling firms that have selling agreements with us and TCI are paid commissions for the promotion and sale of the policies according to one or more schedules. The amount and timing of commissions may vary depending on the selling agreement, but the maximum commission is 1.25% of premiums (additional amounts may be paid as overrides to wholesalers).

To the extent permitted by Financial Industry Regulatory Authority (FINRA) rules, TCI may pay (or allow other broker-dealers to provide) promotional incentives or payments in the form of cash or non-cash compensation or reimbursement to some, but not all, selling firms and their sales representatives. These arrangements are sometimes referred to as “revenue sharing” arrangements and are described further below.

The sales representative who sells you the policy typically receives a portion of the compensation we (and our affiliates) pay to the selling firms, depending on the agreement between the selling firm and its 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.

You should be aware that a selling firm or its sales representatives may receive different compensation or incentives for selling one product over another. In some cases, these differences may create an incentive for the selling firm or its sales representatives to recommend or sell this policy to you. You may wish to take such incentives into account when considering and evaluating any recommendation relating to the policies.

Special Compensation Paid to Affiliated Firms. We and/or our affiliates provide paid-in capital to TCI and pay the cost of TCI’s operating and other expenses, including costs for facilities, legal and accounting services, and other internal administrative functions. We and/or our affiliates also provide TCI with a percentage of total commissions paid on sales of our policies and provide TCI with capital payments that are not contingent on sales.

TCI’s registered representatives and supervisors may receive non-cash compensation, such as attendance at conferences, seminars and trips (such as travel,

104

lodging and meals in connection therewith), entertainment, merchandise and other similar items, payments, loans, loan forgiveness or loan guaranties.

Additional Compensation That We, TCI and/or Our Affiliates Pay to Selected Selling Firms. TCI, in connection with the sales of the policies, 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 TCI with access to their distribution network, such selling firms may receive additional compensation or reimbursement for, among other things, the hiring and training of sales personnel, marketing, sponsoring of conferences, meetings, seminars, events, and/or other services they provide to us and our affiliates. To the extent permitted by applicable law, TCI and other parties may provide the selling firms with occasional gifts, meals, tickets or other non-cash compensation as an incentive to sell the policies. These special compensation arrangements are not offered to all selling firms and the terms of such arrangements may differ among selling firms.

Special compensation arrangements are calculated in different ways by different selling firms and may be based on past or anticipated sales of the policies and other criteria. For instance, in 2010, TCI, in connection with the sales of our policies, made flat fee payments to several selling firms ranging from $6,350 to $500,000, and payments of between 0.10% and 1.32% on new sales. TCI also paid selling firms special fees based on new sales and/or assets under management.

During 2010, we and/or TCI had such “preferred product” arrangements with the following selling firms:

AXA

Carillon Financial

Centarus Financial

CFD Investments

Citizens Bank

Compass Bank

Equity Services

Financial Advisors of America

Financial Network

Fintegra

Genworth Financial

Girard Securities

Hantz Financial

Huntington Bank

Independent Financial Group

Invest Financial Corporation

James T. Borello

Kovack Securities

LPL Financial

M&T Bank

Merrill Lynch

Money Concepts

Morgan Stanley Smith Barney

Multi Family Securities Corp

Multi Financial

National Planning Corporation

Newbridge Securities

NEXT Financial Group

Park Avenue Securities

Primevest

ProEquities

Raymond James and Associates

Raymond James Financial Group

Sigma Financial

Signator Investments

SII Investments

Summit Equities

Suntrust Bank

TFS Securities, Inc.

The Planners Network

Transamerica Financial Advisors

UBS Financial

UnionBanc Investment Services LLC

US Bancorp

Valmark Securities

105

Wells Fargo/Wachovia

World Equity Group

Word Group Securities

During 2010, in conjunction with TCI, we paid the following amounts (in addition to sales commissions) to the top 10 selling firms (in terms of amounts paid):

Name of Firm	Amount Paid in 2010
Wells Fargo/Wachovia	$	1,327,561
LPL Financial	$	1,170,949
Morgan Stanley Smith Barney	$	1,122,219
Merrill Lynch	$	810,000
Transamerica Financial Advisors	$	750,789
UBS Financial	$	485,097
Raymond James Financial Services	$	426,264
World Group Securities	$	412,219
National Planning Corporation	$	315,904
Citizens Bank	$	270,113

No specific charge is assessed directly to policy owners or the separate account to cover commissions, non-cash compensation, and other incentives or payments described above. We do intend to recoup commissions and other sales expenses and incentives we pay, however, through fees and charges deducted under the policy and other corporate revenue.

TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION

Glossary of Terms

The Policy - General Provisions

Certain Federal Income Tax Consequences

Investment Experience

Historical Performance Data

Published Ratings

State Regulation of Transamerica Life Insurance Company

Administration

Records and Reports

Distribution of the Policies

Voting Rights

Other Products

Custody of Assets

Legal Matters

Independent Registered Public Accounting Firm

Other Information

Financial Statements

Appendix - OA Method Transfers

Appendix - PAM Method Transfers

106

APPENDIX

CONDENSED FINANCIAL INFORMATION

The accumulation unit values and the number of accumulations units outstanding from each subaccount from the date of inception are shown in the following tables.

			1.90%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Transamerica BlackRock Global Allocation VP – Service Class		2010	$	1.200030	$	1.291530		1,742,008.410
Subaccount inception date May 1, 2009		2009	$	1.000000	$	1.200030		130,561.494
Transamerica BlackRock Large Cap Value VP – Service Class		2010	$	0.786258	$	0.849934		513,541.712
Subaccount Inception Date May 1, 2000		2009	$	0.704580	$	0.786258		177,029.895
		2008	$	1.088974	$	0.704580		36,500.817
		2007	$	1.063525	$	1.088974		35,915.227
		2006	$	1.000000	$	1.063525		13,227.866
Transamerica BlackRock Tactical Allocation VP – Service Class		2010	$	1.203782	$	1.314161		439,035.128
Subaccount inception date May 1, 2009		2009	$	1.000000	$	1.203782		39,945.950
Transamerica Clarion Global Real Estate Securities VP – Service Class		2010	$	0.830462	$	0.939678		56,741.049
Subaccount Inception Date May 1, 2002		2009	$	0.636251	$	0.830462		34,859.190
		2008	$	1.127580	$	0.636251		33,217.449
		2007	$	1.234393	$	1.127580		18,865.159
		2006	$	1.000000	$	1.234393		106,063.702
Transamerica Foxhall Global Conservative VP – Service Class		2010	$	0.983154	$	0.906012		85,133.978
Subaccount inception date November 19, 2009		2009	$	0.995061	$	0.983154		6,105.109
Transamerica Foxhall Global Commodities & Hard Assets VP – Service Class Subaccount inception date November 19, 2009		2010 2009	$ $	0.985386 0.986564	$ $	0.997017 0.985386		213,727.512 0.000
Transamerica AEGON High Yield Bond VP – Service Class		2010	$	1.112807	$	1.224966		62,220.674
Subaccount Inception Date June 2, 1998		2009	$	0.772135	$	1.112807		33,540.262
		2008	$	1.055670	$	0.772135		0.000
		2007	$	1.057560	$	1.055670		0.000
		2006	$	1.000000	$	1.057560		0.000
Transamerica MFS International Equity VP – Service Class		2010	$	0.927939	$	1.004489		223,871.740
Subaccount Inception Date May 1, 2001		2009	$	0.715058	$	0.927939		136,937.087
		2008	$	1.130491	$	0.715058		142,098.434
		2007	$	1.058240	$	1.130491		90,369.755
		2006	$	1.000000	$	1.058240		39,497.212
Transamerica PIMCO Total Return VP – Service Class		2010	$	1.194546	$	1.253577		1,233,602.205
Subaccount Inception Date May 1, 2002		2009	$	1.051601	$	1.194546		790,154.232
		2008	$	1.105623	$	1.051601		211,893.582
		2007	$	1.035566	$	1.105623		124,982.616
		2006	$	1.000000	$	1.035566		76,442.058
Transamerica ProFunds UltraBear Fund – Service Class OAM		2010	$	0.560855	$	0.403088		470,431.312
Subaccount inception date May 1, 2009		2009	$	1.000000	$	0.560855		0.000
Transamerica T. Rowe Price Small Cap VP – Service Class		2010	$	0.858378	$	1.129298		183,919.660
Subaccount Inception Date May 1, 2000		2009	$	0.632312	$	0.858378		27,681.631
		2008	$	1.013242	$	0.632312		57,694.968
		2007	$	0.944996	$	1.013242		65,322.019
		2006	$	1.000000	$	0.944996		51,584.638

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CONDENSED FINANCIAL INFORMATION — (Continued)

			1.90%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Transamerica AllianceBernstein Dynamic Allocation VP – Service Class		2010	$	0.914390	$	0.979463		33,747.651
Subaccount Inception Date May 1, 2002		2009	$	0.710376	$	0.914390		26,968.407
		2008	$	1.149055	$	0.710376		6,687.833
		2007	$	0.989965	$	1.149055		6,776.405
		2006	$	1.000000	$	0.989965		0.000
Transamerica AEGON Money Market VP – Service Class		2010	$	1.030079	$	1.010924		729,816.250
Subaccount Inception Date July 5, 1994		2009	$	1.049513	$	1.030079		399,264.666
		2008	$	1.046863	$	1.049513		676,118.179
		2007	$	1.018335	$	1.046863		343,026.579
		2006	$	1.000000	$	1.018335		116,990.871
Transamerica AEGON U.S. Government Securities VP – Service Class		2010	$	1.159638	$	1.186078		598,532.880
Subaccount Inception Date August 3, 1994		2009	$	1.134074	$	1.159638		477,437.077
		2008	$	1.075910	$	1.134074		444,400.151
		2007	$	1.036528	$	1.075910		0.000
		2006	$	1.000000	$	1.036528		0.000
Transamerica Index 35 VP – Service Class		2010	$	0.997783	$	1.071463		927.933
Subaccount inception date November 19, 2009		2009	$	0.999948	$	0.997783		0.000
Transamerica Index 50 VP – Service Class		2010	$	0.932770	$	1.013256		231,910.845
Subaccount Inception Date May 1, 2008		2009	$	0.815656	$	0.932770		185,075.215
		2008	$	1.000000	$	0.815656		0.000
Transamerica Index 75 VP – Service Class		2010	$	0.870203	$	0.965040		1,143,705.016
Subaccount Inception Date May 1, 2008		2009	$	0.719866	$	0.870203		866,031.593
		2008	$	1.000000	$	0.719866		643,424.842
Transamerica Index 100 VP – Service Class		2010	$	1.023730	$	1.149386		0.000
Subaccount inception date November 19, 2009		2009	$	0.999948	$	1.023730		0.000
Transamerica Morgan Stanley Active International Allocation VP – Service Class		2010	$	0.880545	$	0.935021		142,155.233
Subaccount Inception Date July 5, 1994		2009	$	0.713948	$	0.880545		138,862.062
		2008	$	1.193650	$	0.713948		93,823.825
		2007	$	1.055268	$	1.193650		64,036.082
		2006	$	1.000000	$	1.055268		70,359.136
Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class		2010	$	0.982522	$	1.287990		127,657.607
Subaccount Inception Date May 1, 2001		2009	$	0.625274	$	0.982522		27,347.953
		2008	$	1.189694	$	0.625274		25,842.364
		2007	$	0.991858	$	1.189694		21,301.345
		2006	$	1.000000	$	0.991858		869.928
PAM Transamerica AEGON U.S. Government Securities VP – Service Class Subaccount Inception Date November 3, 2003		2010 2009 2008 2007 2006	$ $ $ $ $	1.159638 1.134074 1.075910 1.036528 1.000000	$ $ $ $ $	1.186078 1.159638 1.134074 1.075910 1.036528		626,365.072 515,621.744 787,322.762 81,371.416 0.000
AllianceBernstein Balanced Wealth Strategy Portfolio – Class B		2010	$	1.234087	$	1.333173		5,378.614
Subaccount Inception Date November 10, 2008		2009	$	1.012438	$	1.234087		0.000
		2008	$	1.000000	$	1.012438		0.000
Fidelity VIP Balanced Portfolio – Service Class 2		2010	$	0.901140	$	1.041380		131,950.363
Subaccount Inception Date May 1, 2008		2009	$	0.663853	$	0.901140		78,165.444
		2008	$	1.000000	$	0.663853		0.000
Franklin Income Securities Fund – Class 2		2010	$	0.888410	$	0.982343		100,543.100
Subaccount Inception Date May 1, 2007		2009	$	0.667633	$	0.888410		36,920.627
		2008	$	0.967204	$	0.667633		22,397.977
		2007	$	1.000000	$	0.967204		0.000

108

CONDENSED FINANCIAL INFORMATION — (Continued)

			1.90%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
American Funds - Asset Allocation Fund – Class 2		2010	$	1.007699	$	1.109332		135,665.227
Subaccount inception date November 19, 2009		2009	$	0.989771	$	1.007699		0.000
American Funds - Bond Fund – Class 2		2010	$	0.993413	$	1.034670		45,533.387
Subaccount inception date November 19, 2009		2009	$	1.000892	$	0.993413		0.000
American Funds - Growth Fund – Class 2		2010	$	1.002561	$	1.164254		184,148.644
Subaccount inception date November 19, 2009		2009	$	0.986474	$	1.002561		0.000
American Funds - Growth-Income Fund – Class 2		2010	$	1.007946	$	1.098962		9,310.735
Subaccount inception date November 19, 2009		2009	$	0.986795	$	1.007946		0.000
GE Investments Total Return Fund – Class 3		2010	$	1.003337	$	1.074749		32,381.232
Subaccount inceptiond date November 19, 2009		2009	$	0.988803	$	1.003337		0.000
			1.70%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Transamerica BlackRock Global Allocation VP – Service Class		2010	$	1.201597	$	1.295746		8,245,776.242
Subaccount inception date May 1, 2009		2009	$	1.000000	$	1.201597		3,596,173.450
Transamerica BlackRock Large Cap Value VP – Service Class		2010	$	0.791956	$	0.857778		3,546,773.433
Subaccount Inception Date May 1, 2000		2009	$	0.708289	$	0.791956		2,333,334.998
		2008	$	1.092545	$	0.708289		1,122,070.819
		2007	$	1.064914	$	1.092545		983,966.601
		2006	$	1.000000	$	1.064914		61,452.322
Transamerica BlackRock Tactical Allocation VP – Service Class		2010	$	1.205357	$	1.318472		2,147,694.970
Subaccount inception date May 1, 2009		2009	$	1.000000	$	1.205357		403,876.282
Transamerica Clarion Global Real Estate Securities VP – Service Class		2010	$	0.836507	$	0.948374		627,682.389
Subaccount Inception Date May 1, 2002		2009	$	0.639615	$	0.836507		393,492.088
		2008	$	1.131291	$	0.639615		429,111.314
		2007	$	1.235999	$	1.131291		383,065.961
		2006	$	1.000000	$	1.235999		47,044.134
Transamerica Foxhall Global Conservative VP – Service Class		2010	$	0.983383	$	0.908012		451,326.437
Subaccount inception date November 19, 2009		2009	$	0.995066	$	0.983383		111,904.036
Transamerica Foxhall Global Commodities & Hard Assets VP – Service Class Subaccount inception date November 19, 2009		2010 2009	$ $	0.985611 0.986569	$ $	0.999198 0.985611		619,896.171 54,170.345
Transamerica Morgan Stanley Capital Growth VP – Service Class		2010	$	0.836363	$	1.045138		258,131.020
Subaccount Inception Date May 1, 2000		2009	$	0.666777	$	0.836363		221,575.875
		2008	$	1.068640	$	0.666777		218,649.796
		2007	$	1.078664	$	1.068640		181,435.623
		2006	$	1.000000	$	1.078664		93,244.423
Transamerica AEGON High Yield Bond VP – Service Class		2010	$	1.120823	$	1.236198		1,459,677.573
Subaccount Inception Date June 2, 1998		2009	$	0.776180	$	1.120823		863,904.686
		2008	$	1.059115	$	0.776180		408,612.174
		2007	$	1.058929	$	1.059115		385,946.596
		2006	$	1.000000	$	1.058929		145,668.239
Transamerica MFS International Equity VP – Service Class		2010	$	0.934669	$	1.013763		780,952.125
Subaccount Inception Date May 1, 2001		2009	$	0.718825	$	0.934669		572,957.821
		2008	$	1.134210	$	0.718825		499,722.780
		2007	$	1.059617	$	1.134210		433,370.442
		2006	$	1.000000	$	1.059617		86,710.093

109

CONDENSED FINANCIAL INFORMATION — (Continued)

			1.70%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
Transamerica PIMCO Total Return VP – Service Class		2010	$	1.203194	$	1.265142		10,865,096.796
Subaccount Inception Date May 1, 2002		2009	$	1.057139	$	1.203194		6,723,271.642
		2008	$	1.109256	$	1.057139		2,498,454.315
		2007	$	1.036920	$	1.109256		547,341.603
		2006	$	1.000000	$	1.036920		66,158.083
Transamerica ProFunds UltraBear Fund – Service Class OAM		2010	$	0.561600	$	0.404424		1,246,374.161
Subaccount inception date May 1, 2009		2009	$	1.000000	$	0.561600		36,339.146
Transamerica T. Rowe Price Small Cap VP – Service Class		2010	$	0.864603	$	1.139719		531,073.357
Subaccount Inception Date May 1, 2000		2009	$	0.635650	$	0.864603		525,139.979
		2008	$	1.016578	$	0.635650		290,417.279
		2007	$	0.946210	$	1.016578		217,418.369
		2006	$	1.000000	$	0.946210		7,155.051
Transamerica AllianceBernstein Dynamic Allocation VP – Service Class		2010	$	0.920995	$	0.988475		648,000.076
Subaccount Inception Date May 1, 2002		2009	$	0.714117	$	0.920995		424,103.009
		2008	$	1.152836	$	0.714117		247,413.176
		2007	$	0.991257	$	1.152836		283,945.085
		2006	$	1.000000	$	0.991257		38,696.224
Transamerica AEGON Money Market VP – Service Class		2010	$	1.037558	$	1.020273		5,034,841.530
Subaccount Inception Date July 5, 1994		2009	$	1.055058	$	1.037558		5,206,256.150
		2008	$	1.050319	$	1.055058		10,380,130.853
		2007	$	1.019675	$	1.050319		2,769,227.153
		2006	$	1.000000	$	1.019675		469,138.652
Transamerica AEGON U.S. Government Securities VP – Service Class		2010	$	1.168061	$	1.197044		5,682,475.784
Subaccount Inception Date August 3, 1994		2009	$	1.140067	$	1.168061		3,456,286.339
		2008	$	1.079456	$	1.140067		1,422,883.555
		2007	$	1.037892	$	1.079456		115,935.315
		2006	$	1.000000	$	1.037892		7,992.854
Transamerica Index 35 VP – Service Class		2010	$	0.998015	$	1.073814		715,591.901
Subaccount inception date November 19, 2009		2009	$	0.999954	$	0.998015		0.000
Transamerica Index 50 VP – Service Class		2010	$	0.935839	$	1.018584		613,465.532
Subaccount Inception Date May 1, 2008		2009	$	0.816736	$	0.935839		748,782.638
		2008	$	1.000000	$	0.816736		266,216.046
Transamerica Index 75 VP – Service Class		2010	$	0.873054	$	0.970105		6,041,137.262
Subaccount Inception Date May 1, 2008		2009	$	0.720815	$	0.873054		5,259,673.885
		2008	$	1.000000	$	0.720815		779,065.245
Transamerica Index 100 VP – Service Class		2010	$	1.023968	$	1.151914		112,231.700
Subaccount inception date November 19, 2009		2009	$	0.999954	$	1.023968		2,721.925
Transamerica Morgan Stanley Active International Allocation VP – Service Class Subaccount Inception Date July 5, 1994		2010 2009 2008 2007 2006	$ $ $ $ $	0.886892 0.717685 1.197548 1.056631 1.000000	$ $ $ $ $	0.943609 0.886892 0.717685 1.197548 1.056631		657,748.542 1,005,468.530 785,316.171 669,723.474 137,538.568
Transamerica Morgan Stanley Mid-Cap Growth VP – Service Class		2010	$	0.989658	$	1.299896		425,696.761
Subaccount Inception Date May 1, 2001		2009	$	0.628577	$	0.989658		275,521.723
		2008	$	1.193621	$	0.628577		167,256.060
		2007	$	0.993158	$	1.193621		75,807.290
		2006	$	1.000000	$	0.993158		5,351.076

110

CONDENSED FINANCIAL INFORMATION – (Continued)

			1.70%
Subaccount	Year		Beginning AUV		Ending AUV		# Units
PAM Transamerica AEGON U.S. Government Securities VP – Service Class Subaccount Inception Date November 3, 2003		2010 2009 2008 2007 2006	$ $ $ $ $	1.168061 1.140067 1.079456 1.037892 1.000000	$ $ $ $ $	1.197044 1.168061 1.140067 1.079456 1.037892		209,616.765 366,923.232 575,634.300 0.000 0.000
AllianceBernstein Balanced Wealth Strategy Portfolio – Class B Subaccount Inception Date November 10, 2008		2010 2009 2008	$ $ $	1.236838 1.012714 1.000000	$ $ $	1.338773 1.236838 1.012714		930,865.780 240,848.455 0.000
Fidelity VIP Balanced Portfolio – Service Class 2 Subaccount Inception Date May 1, 2008		2010 2009 2008	$ $ $	0.904091 0.664725 1.000000	$ $ $	1.046837 0.904091 0.664725		1,230,864.929 917,997.573 64,280.341
Franklin Income Securities Fund – Class 2 Subaccount Inception Date May 1, 2007		2010 2009 2008 2007	$ $ $ $	0.893086 0.669833 0.968475 1.000000	$ $ $ $	0.989452 0.893086 0.669833 0.968475		2,747,692.055 1,900,072.534 1,354,399.684 656,829.077
American Funds - Asset Allocation Fund – Class 2 Subaccount inception date November 19, 2009		2010 2009	$ $	1.007931 0.989776	$ $	1.111765 1.007931		1,577,513.531 78,055.631
American Funds - Bond Fund – Class 2 Subaccount inception date November 19, 2009		2010 2009	$ $	0.993644 1.000897	$ $	1.036944 0.993644		598,788.904 63,418.369
American Funds - Growth Fund – Class 2 Subaccount inception date November 19, 2009		2010 2009	$ $	1.002789 0.986479	$ $	1.166806 1.002789		364,500.005 0.000
American Funds - Growth-Income Fund – Class 2 Subaccount inception date November 19, 2009		2010 2009	$ $	1.008181 0.986801	$ $	1.101360 1.008181		207,455.738 0.000
GE Investments Total Return Fund – Class 3 Subaccount inceptiond date November 19, 2009		2010 2009	$ $	1.003571 0.988808	$ $	1.077107 1.003571		373,010.145 0.000

Transamerica Madison Moderate Growth Allocation VP, Transamerica Madison Balanced Allocation VP, Transamerica Madison Diversified Income VP, TA PIMCO Real Return TIPS VP, Transamerica Madison Conservative Allocation VP and Transamerica Madison Large Cap Growth VP had not commenced operations as of December 31, 2010, therefore, comparable data is not available.

111

APPENDIX

POLICY VARIATIONS

The dates shown below are the approximate first issue dates of the various versions of the policy. These dates will vary by state in many cases. This Appendix describes certain of the more significant differences in features of the various versions of the policy. There may be additional variations. Please see your actual policy and any attachments for determining your specific coverage.

Policy Form/Endorsement	Approximate First Issue Date
AV212 101 75 1292 (Policy Form)	May 1993
V829 & S831 (replacement pages for 1.65 M&E)	January 1994
AE872 395 (endorsement)	May 1995
AV265 101 89 396 (Policy Form)	June 1996
AE900 396 (endorsement)	June 1996
AV339 101 101 497 (Policy Form)	July 1997
AE957 497 (endorsement)	July 1997
AV400 101 107 198 (Policy Form)	May 1998
AV864 101 165 103 (Policy Form)	November 2003

112

Product Feature	Transamerica Freedom 95 Form Number: – AV212 101 75 1292	Transamerica Freedom 95 Form Number: – AV212 101 75 1292, with V829 and S831 Replacement Pages – AV212 101 75 395 SP Replacement Spec – AE 872 395 Death Benefit Endorsement	Transamerica Freedom 96 Form Number: – AV265 101 89 396 – AE900 396
Guaranteed Minimum Death Benefit Option(s)	5% Annually Compounding or Annual Step-Up.	5% Annually Compounding or Annual Step-Up.	A. 5% Annually Compounding B. Annual Step-Up
			C. Return of Premium
			Option A is available if Owner and Annuitant are both under age 75. Option B is available if Owner and Annuitant are both under age 81. Option C is available for issue ages 81-84.
Double Enhanced Death Benefit Designated Funds	N/A	N/A	N/A
Death Proceeds	Greater of:	Greater of:	Greatest of:
	1)      the Policy Value on the date we receive due proof of death	1)      the Policy Value on the date we receive due proof of death	1)      Policy Value 2)      Cash Value
	2)      the total premiums paid for this policy, less any partial surrenders made before death, accumulated at 5% interest per annum to the date we receive due proof of death.	2)      the total premiums paid for this policy, less any partial surrenders made before death, accumulated at 5% interest per annum to the date we receive due proof of death.	3)      Guaranteed Minimum Death Benefit
Mortality & Expense Risk Fee and Administrative Charge prior to Annuity Commencement Date	•      1.65% first 10 policy years •      0.25% less after first 10 policy years	•      1.65% first 10 policy years •      0.25% less after first 10 policy years	•      1.65% first 10 policy years •      0.25% less after first 10 policy years
Is Mortality & Expense Risk Fee and Administrative Charge different after the Annuity Commencement Date?	No	No	No
Fund Facilitation Fee	No	No	No
Guaranteed Period Options (available in the Fixed Account)	N/A	N/A	1, 3 and 5 year Guaranteed Periods available.
Distribution Financing Charge	N/A	Applicable	Applicable
Annual Contract Charge (Service Charge)	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary
Optional Riders	•      Family Income Protector	•      Family Income Protector	•      Taxpayer 2003
	•      Managed Annuity Program	•      Managed Annuity Program	•      Taxpayer Plus 2
	•      5 for Life 2005	•      5 for Life 2005	•      Taxpayer
			•      Family Income Protector
			•      Managed Annuity Program
			•      Managed Annuity Program II
			•      Living Benefit Rider 2003
			•      Living Benefit Rider 2005
			•      5 for Life 2005
Excess Interest Adjustment	N/A	N/A	Yes
Asset Rebalancing Option	Yes	Yes	Yes
Dollar Cost Averaging Option	Yes (No fixed DCA Account)	Yes	Yes

113

Product Feature	Transamerica Freedom 95 Form Number: – AV212 101 75 1292	Transamerica Freedom 95 Form Number: – AV212 101 75 1292, with V829 and S831 Replacement Pages – AV212 101 75 395 SP Replacement Spec – AE 872 395 Death Benefit Endorsement	Transamerica Freedom 96 Form Number: – AV265 101 89 396 – AE900 396
Nursing Care and Terminal Condition Withdrawal Option	N/A	N/A	Yes (by Endorsement AE 900 396)
Unemployment Waiver	N/A	N/A	N/A

Product Feature	Transamerica Freedom 97 Form Number: – AV339 101 101 497 – AE957 497	Transamerica Freedom 98 Form Number: – AV400 101 107 198 – AE957 497	Transamerica Freedom 98 Form Number: – AV400 101 107 198 – RGMI 1 798
Guaranteed Minimum Death Benefit Option(s)	A.     5% Annually Compounding B.     Annual Step-Up	A.     5% Annually Compounding B.     Double Enhanced	A.     5% Annually Compounding B.     Double Enhanced
	C.     Return of Premium	C.     Return of Premium	C.     Return of Premium
	Option A is available if Owner and Annuitant are both under age 75. Option B is available if Owner and Annuitant are both under age 81.	Option A is available if Owner and Annuitant are both under age 75. Option B is available if Owner and Annuitant are both under age 81.	Option A is available if Owner and Annuitant are both under age 75. Option B is available if Owner and Annuitant are both under age 81.
Double Enhanced Death Benefit Designated Funds	N/A	N/A	N/A
Death Proceeds	Greatest of:	Greatest of:	Greatest of:
	1)      Policy Value	1)      Policy Value	1)      Policy Value
	2)      Cash Value	2)      Cash Value	2)      Cash Value
	3)      Guaranteed Minimum Death Benefit.	3)      Guaranteed Minimum Death Benefit.	3)      Guaranteed Minimum Death Benefit.
Mortality & Expense Risk Fee and Administrative Charge prior to Annuity Commencement Date	•      1.50% for Return of Premium - first 10 Policy Years	•      1.50% for Return of Premium - first 10 Policy Years	•      1.50% for Return of Premium - first 10 Policy Years
	•      1.65% for Annual Step-Up - first 10 Policy Years	•      1.65% for Double Enhanced - first 10 Policy Years	•      1.65% for Double Enhanced - first 10 Policy Years
	•      1.65% for 5% Compounding - first 10 Policy Years	•      1.65% for 5% Compounding - first 10 Policy Years	•      1.65% for 5% Compounding - first 10 Policy Years
	•       0.25% less after First 10 Policy Years	•      0.25% less after First 10 Policy Years	•      0.25% less after First 10 Policy Years
Is Mortality & Expense Risk Fee and Administrative Charge different after the Annuity Commencement Date?	No	Yes – 1.10% plus Administrative Charge, regardless of death benefit chosen prior to the Annuity Commencement Date.	Yes – 1.10% plus Administrative Charge, regardless of death benefit chosen prior to the Annuity Commencement Date.
Fund Facilitation Fee	No	No	No
Guaranteed Period Options (available in the Fixed Account)	1, 3, and 5 year Guaranteed Periods available.	1, 3, and 5 year Guaranteed Periods available.	1, 3, and 5 year Guaranteed Periods available.
Distribution Financing Charge	Applicable	Applicable	Applicable
Annual Contract Charge (Service Charge)	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary

114

Product Feature	Transamerica Freedom 97 Form Number: – AV339 101 101 497 – AE957 497	Transamerica Freedom 98 Form Number: – AV400 101 107 198 – AE957 497	Transamerica Freedom 98 Form Number: – AV400 101 107 198 – RGMI 1 798
Optional Riders	•      Taxpayer 2003	•      Taxpayer 2003	•      Taxpayer 2003
	•      Taxpayer Plus 2	•      Taxpayer Plus 2	•      Taxpayer Plus 2
	•      Taxpayer	•      Taxpayer	•      Taxpayer
	•      Family Income Protector	•      Family Income Protector	•      Family Income Protector
	•      Managed Annuity Program	•      Managed Annuity Program	•      Managed Annuity Program
	•      Managed Annuity Program II	•      Managed Annuity Program II	•      Managed Annuity Program II
	•      Living Benefit Rider 2003	•      Living Benefit Rider 2003	•      Living Benefit Rider 2003
	•      Living Benefit Rider 2005	•      Living Benefit Rider 2005	•      Living Benefit Rider 2005
	•      5 for Life 2005	•      5 for Life 2005	•      5 for Life 2005
Excess Interest Adjustment	Yes	Yes	Yes
Asset Rebalancing	Yes	Yes	Yes
Dollar Cost Averaging Fixed Account Option	Yes	Yes	Yes
Nursing Care and Terminal Condition Withdrawal Option	Yes (by Endorsement AE 957 497)	Yes (by Endorsement AE 957 497)	Yes (by Endorsement AE 957 497)
Unemployment Waiver	N/A	N/A	N/A

Product Feature	Transamerica Freedom 2003 Form Number: – AV864 101 165 103	Transamerica Freedom 2006 Form Number: – AV864 101 165 103	Transamerica Freedom 2008 Form Number: – AV864 101 165 103
Guaranteed Minimum Death Benefit Option(s)	A.     Modal Double Enhanced - RGMD 6 0203	A.     Modal Double Enhanced - RGMD 6 0203	A.     Modal Double Enhanced - RGMD 15 0108
	B.     Modal Annual Step-Up - RGMD 5 0103	B.     Modal Annual Step-Up - RGMD 5 0103	B.     Modal Annual Step-Up - RGMD 5 0103
	C.     Return of Premium - RGMD 8 0603.	C.     Return of Premium - RGMD 8 0603	C.     Return of Premium - RGMD 8 0603
	Option A is available if Owner and Annuitant are both under age 75. Option B is available if Owner and Annuitant are under age 81.	Option A is available if Owner and Annuitant are both under age 76. Option B is available if Owner and Annuitant are under age 81.	Option A is available if Owner and Annuitant are both under age 76. Option B is available if Owner and Annuitant are under age 76.

115

Product Feature	Transamerica Freedom 2003 Form Number: – AV864 101 165 103	Transamerica Freedom 2006 Form Number: – AV864 101 165 103	Transamerica Freedom 2008 Form Number: – AV864 101 165 103
Double Enhanced Death Benefit Designated Funds	N/A	N/A	•      AllianceBernstein Balanced Wealth Strategy Portfolio - Class B
			•      American Funds - Asset Allocation Fund - Class 2
			•      American Funds - Bond Fund - Class 2
			•      Fidelity VIP Balanced Portfolio – Service Class 2
			•      Franklin Templeton VIP Founding Funds Allocation Fund - Class 4
			•      GE Investments Total Return Fund – Class 3
			•      Transamerica Asset Allocation - Conservative VP – Service Class
			•      Transamerica Asset Allocation - Moderate VP – Service Class
			•      Transamerica Asset Allocation - Moderate Growth VP – Service Class
			•      Transamerica International Moderate Growth VP – Service Class
			•      Transamerica Multi-Managed Balanced VP – Service Class
			•      Transamerica BlackRock Global Allocation VP - Service Class
			•      Transamerica BlackRock Tactical Allocation VP - Service Class
			•      Transamerica Efficient Markets VP - Service Class
			•      Transamerica Foxhall Global Conservative VP – Service Class
			•      Transamerica Index 35 VP – Service Class
			•      Transamerica Index 50 VP – Service Class
			•      Transamerica Index 75 VP – Service Class
			•      Transamerica AEGON Money Market VP – Service Class
			•      Transamerica PIMCO Total Return VP – Service Class
			•      Transamerica AEGON U.S. Government Securities VP – Service Class

116

Product Feature	Transamerica Freedom 2003 Form Number: – AV864 101 165 103	Transamerica Freedom 2006 Form Number: – AV864 101 165 103	Transamerica Freedom 2008 Form Number: – AV864 101 165 103
Death Proceeds	Greatest of:	Greatest of:	Greatest of:
	1)      Policy Value	1)      Policy Value	1)      Policy Value
	2)      Cash Value	2)      Cash Value	2)      Cash Value
	3)      Guaranteed Minimum Death Benefit	3)      Guaranteed Minimum Death Benefit	3)      Guaranteed Minimum Death Benefit
Mortality & Expense Risk Fee and Administrative Charge prior to Annuity Commencement Date	•      1.65% for Return of Premium •      1.85% for Annual Step-Up	•      1.60% for Policy Value •      1.70% for Return of Premium	•      1.70% for Return of Premium •      1.90% for Annual Step-Up
	•      2.15% for Double Enhanced	•      1.90% for Annual Step-Up •      2.20% for Double Enhanced	•      2.35% for Double Enhanced
Is Mortality & Expense Risk Fee and Administrative Charge different after the Annuity Commencement Date?	Yes – 1.10% plus Administrative Charge, regardless of death benefit chosen prior to the Annuity Commencement Date.	Yes – 1.10% plus Administrative Charge, regardless of death benefit chosen prior to the Annuity Commencement Date.	Yes – 1.10% plus Administrative Charge, regardless of death benefit chosen prior to the Annuity Commencement Date.
Fund Facilitation Fee	Yes -	Yes -	Yes -
	•      0.30% if you choose American Funds - Asset Allocation Fund, American Funds - Bond Fund, American Funds - Growth Fund, American Funds - Growth-Income Fund, or American Funds - International Fund.	•      0.30% if you choose American Funds - Asset Allocation Fund, American Funds - Bond Fund, American Funds - Growth Fund, American Funds - Growth-Income Fund, or American Funds - International Fund.	•      0.30% if you choose American Funds - Asset Allocation Fund, American Funds - Bond Fund, American Funds - Growth Fund, American Funds - Growth-Income Fund, or American Funds - International Fund.
	•      0.20% if you choose AllianceBernstein Balanced Wealth Strategy Portfolio or GE Investments Total Return Fund.	•      0.20% if you choose AllianceBernstein Balanced Wealth Strategy Portfolio or GE Investments Total Return Fund.	•      0.20% if you choose AllianceBernstein Balanced Wealth Strategy Portfolio or GE Investments Total Return Fund.
	•      0.15% if you choose Franklin Templeton VIP Founding Funds Allocation Fund.	•      0.15% if you choose Franklin Templeton VIP Founding Funds Allocation Fund.	•      0.15% if you choose Franklin Templeton VIP Founding Funds Allocation Fund.
	•      0.10% if you choose Transamerica BlackRock Global Allocation VP.	•      0.10% if you choose Transamerica BlackRock Global Allocation VP.	•      0.10% if you choose Transamerica BlackRock Global Allocation VP.
Guaranteed Period Options (available in the Fixed Account)	1, 3, and 5 year Guaranteed Periods available.	1, 3, and 5 year Guaranteed Periods available.	1, 3, 5, and 7 year Guaranteed Periods available.
Distribution Financing Charge	Applicable	Applicable	Applicable
Annual Contract Charge (Service Charge)	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary	If policy value is: $0-$1750 = 2% $1751-$49999.99 = $35 +$49999.99 = $0 Assessed on each Policy Anniversary

117

Product Feature	Transamerica Freedom 2003 Form Number: – AV864 101 165 103	Transamerica Freedom 2006 Form Number: – AV864 101 165 103	Transamerica Freedom 2008 Form Number: – AV864 101 165 103
Optional Riders	•      Taxpayer 2003 •      Taxpayer Plus 2 •      Living Benefit Rider 2003 •      5 for Life 2005 •      Income Select for Life	•      Taxpayer 2003 •      Taxpayer Plus 2 •      Living Benefit Rider 2005 •      5 for Life 2005 •      Income Select for Life •      Retirement Income Choice® •      Retirement Income Choice® 2008 (with Double Withdrawal Base Benefit) •      Retirement Income Choice® 1.2 •      Retirement Income Choice® 1.4 •      Retirement Income MaxSM	•      Taxpayer 2003 •      Taxpayer Plus 2 •      Living Benefit Rider 2005 •      Retirement Income Choice® •      Retirement Income Choice® 2008 (with Double Withdrawal Base Benefit) •      Retirement Income Choice® 1.2 •      Retirement Income Choice® 1.4 •      Income Link® •      Retirement Income MaxSM
Excess Interest Adjustment	Yes	Yes	Yes
Asset Rebalancing	Yes	Yes	Yes
Dollar Cost Averaging Fixed Account Option	Yes	Yes	Yes
Nursing Care and Terminal Condition Withdrawal Option	Yes	Yes	Yes
Unemployment Waiver	Yes	Yes	Yes

118

APPENDIX

EXCESS INTEREST ADJUSTMENT EXAMPLES

Money that you surrender from, transfer out of, or apply to an annuity payment option, from a guaranteed period option of the fixed account before the end of its guaranteed period (the number of years you specified the money would remain in the guaranteed period option) may be subject to an excess interest adjustment (“EIA”). At the time you request a surrender, if interest rates set by the Company have risen since the date of the initial guarantee, the excess interest adjustment will result in a lower cash value. However, if interest rates have fallen since the date of the initial guarantee, the excess interest adjustment will result in a higher cash value.

Excess interest adjustments will not reduce the policy value for a guaranteed period option below the premium payments and transfers to that guaranteed period option, less any prior partial surrenders and transfers from the guaranteed period option, plus interest at the policy’s minimum guaranteed effective annual interest rate. This is referred to as the excess interest adjustment floor.

The formula that will be used to determine the excess interest adjustment is:

S* (G-C)* (M/12)

S	=	Gross amount being surrendered that is subject to the excess
		interest adjustment
G	=	Guaranteed interest rate in effect for the policy
C	=	Current guaranteed interest rate then being offered on new
		premiums for the next longer option period than “M”. If
		this policy form or such an option period is no longer offered,
		“C” will be the U.S. Treasury rate for the next longer maturity
		(in whole years) than “M” on the 25th day of the previous
		calendar month, plus up to 2%.
M	=	Number of months remaining in the current option period,
		rounded up to the next higher whole number of months.
*	=	multiplication
^	=	exponentiation

The following examples are for illustrative purposes only and ore calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

119

Excess Interest Adjustment Examples — (Continued)

Example 1 (Full Surrender, rates increase by 4%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Surrender:	Middle of policy year 3
Policy value at middle of policy year 3	= 50,000.00 * (1.055) ^ 2.5 = 57,161.18
Adjustment free amount at middle of policy year 3	= 57,161.18 - 50,000 = 7,161.18
Amount subject to excess interest adjustment	= 57,161.18 – 7,161.18 = 50,000.00
Excess interest adjustment floor	= 50,000.00 * (1.015) ^ 2.5 = 51,896.14
Excess interest adjustment
G = .055
C = .095
M = 30
Excess interest adjustment	= S * (G - C) * (M/12)
	= 50,000.00 * (.055 - .095) * (30/12)
	= -5,000.00, but excess interest adjustment cannot cause the adjusted policy value to fall below the excess interest adjustment floor, so the adjustment is limited to 51,896.14 - 57,161.18 = -5,265.03
Adjusted policy value	= policy value + excess interest adjustment
	= 57,161.18 + (-5,265.03) = 51,896.15
Cash value at middle of policy year 3	= policy value + excess interest adjustment
	= 57,161.18 + (-5,265.03) = 51,896.15

Upon full surrender of the policy, the minimum cash value will never be less than that required by the non-forfeiture laws of your state.

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

120

Excess Interest Adjustment Examples — (Continued)

Example 2 (Full Surrender, rates decrease by 1%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Surrender:	Middle of policy year 3
Policy value at middle of policy year 3	= 50,000.00 * (1.055) ^ 2.5 = 57,161.18
Adjustment free amount at middle of policy year 3	= 57,161.18 – 50,000.00 = 7,161.18
Amount subject to excess interest adjustment	= 57,161.18 – 7,161.18 = 50,000.00
Excess interest adjustment floor	= 50,000.00 * (1.015) ^ 2.5 = 51,896.14
Excess interest adjustment
G = .055
C = .045
M = 30
Excess interest adjustment	= S * (G - C) * (M/12)
	= 50,000.00 * (.055 - .045) * (30/12) = 1,250.00
Adjusted policy value	= 57,161.18 + 1,250.00 = 58,411.18
Cash value at middle of policy year 3	= policy value + excess interest adjustment
	= 57,161.18 + 1,250.00 = 58,411.18

Upon full surrender of the policy, the minimum cash value will never by less than that required by the non-forfeiture laws of your state.

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

On a partial surrender, the Company will pay the policyholder the full amount of surrender requested (as long as the policy value is sufficient). Amounts surrendered will reduce the policy value by an amount equal to:

R - E

R	=	the requested partial surrender
E	=	the excess interest adjustment

121

Excess Interest Adjustment Examples — (Continued)

Example 3 (Partial Surrender, rates increase by 1%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Partial surrender:	$20,000; middle of policy year 3
Policy value at middle of policy year 3	= 50,000.00 * (1.055) ^ 2.5 = 57,161.18
Adjustment free amount at middle of contract year 3	= 57,161.18 – 50,000.00 = 7,161.18
Excess interest adjustment
S= 20,000 – 7,161.18 = 12,838.82
G= .055
C= .065
M= 30
Excess interest adjustment	= S * (G - C) * (M/12)
	= 12,838.82 * (.055 - .065) * (30/12)
	= - 320.97
Remaining policy value at middle of policy year 3	= 57,161.18 - (R - E)
	= 57,161.18 - (20,000.00 - (-320.97)) = 36,840.21

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

Example 4 (Partial Surrender, rates decrease by 1%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Partial surrender:	$20,000; middle of policy year 3
Policy value at middle of policy year 3	= 50,000.00 * (1.055) ^ 2.5 = 57,161.18
Adjustment free amount at middle of policy year 3	= 57,161.18 - 50,000.00 = 7,161.18
Excess interest adjustment
S= 20,000 – 7,161.18 = 12,838.82
G= .055
C= .045
M= 30
Excess interest adjustment	= 12,838.82 * (.055 - .045) * (30/12)
	= 320.97
Remaining policy value at middle of policy year 3	= 57,161.18 - (R - E)
	= 57,161.18 - (20,000.00 – 320.97) = 37,482.15

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

122

APPENDIX

DEATH BENEFIT

Adjusted Partial Surrender. If you make a partial surrender (withdrawal), then your guaranteed minimum death benefit is reduced by an amount called the adjusted partial surrender. The amount of the reduction depends on the relationship between your death benefit and policy value. The adjusted partial surrender is equal to (1) multiplied by (2) divided by (3), where:

(1) is the amount of the gross partial surrender;

(2) is the value of the current death proceeds immedicately prior to the gross partial surrender;

(3) is the policy value immediately prior to the gross partial surrender.

The following examples describe the effect of a surrender on the guaranteed minimum death benefit and policy value.

Example 1 (Assumed Facts for Example)

Current guaranteed minimum death benefit before surrender	$	75,000
Current policy value before surrender	$	50,000
Current death proceeds	$	75,000
Total Gross Partial Surrender	$	15,494
Adjusted partial surrender = 15,494 * 75,000 / 50,000	$	23,241
New guaranteed minimum death benefit (after surrender) = 75,000 – 23,241	$	51,759
New policy value (after surrender) = 50,000 - 15,494	$	34,506

Summary:
Reduction in guaranteed minimum death benefit	=	$	23,241
Reduction in policy value	=	$	15,494

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

** The guaranteed minimum death benefit is reduced more than the policy value because the guaranteed minimum death benefit was greater than the policy value just prior to the surrender.

123

Death Benefit — (Continued)

Example 2 (Assumed Facts for Example)

Current guaranteed minimum death benefit before surrender	$	50,000
Current policy value before surrender	$	75,000
Current death proceeds	$	75,000
Total Gross Partial Surrender	$	15,556
Adjusted partial surrender = 15,556 * 75,000 / 75,000	$	15,556
New guaranteed minimum death benefit (after surrender) = 50,000 - 15,556	$	34,444
New policy value (after surrender) = 75,000 - 15,556	$	59,444

Summary:
Reduction in guaranteed minimum death benefit	=$	15,556
Reduction in policy value	=$	15,556

* This example is for illustrative purposes only. The purpose of this illustration is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

** The guaranteed minimum death benefit and policy value are reduced by the same amount because the policy value was higher than the guaranteed minimum death benefit just prior to the surrender.

124

Death Benefit — (Continued)

Hypothetical Example

In this example, certain death benefit values at various points in time are depicted based on hypothetical assumed rates of performance. This example is for illustrative purposes only and assumes a single $100,000 premium payment by a sole owner and annuitant who is age 50. It further assumes no subsequent premium payments or withdrawals.

End of Year	Net Rate of Return for Fund*			Return of Premium		Annual Step-Up
Issue		N/A		$	100,000	$	100,000
1		-4	%	$	100,000	$	100,000
2		18	%	$	100,000	$	110,093
3		15	%	$	100,000	$	124,955
4		-7	%	$	100,000	$	124,955
5		2	%	$	100,000	$	124,955
6		10	%	$	100,000	$	124,955
7		14	%	$	100,000	$	140,257
8		-3	%	$	100,000	$	140,257
9		17	%	$	100,000	$	154,706
10		6	%	$	100,000	$	161,668

* The assumed rate does reflect the deduction of a hypothetical fund fee but does not reflect the deduction of any other fees, charges or taxes. The death benefit values do reflect the deduction of hypothetical base policy fees and hypothetical death benefit fees. Different hypothetical returns and fees would produce different results.

125

APPENDIX

ADDITIONAL DEATH DISTRIBUTION RIDER — ADDITIONAL INFORMATION

The following example illustrates the Additional Death Distribution additional death benefit payable by this rider as well as the effect of a partial surrender on the Additional Death Distribution benefit amount. The annuitant is less than age 71 on the Rider Date.

Example 1

Policy Value on the Rider Date:	$	100,000
Premiums paid after the Rider Date before Surrender:	$	25,000
Gross Partial Surrenders after the Rider Date:	$	30,000
Policy Value on date of Surrender:	$	150,000
Rider Earnings on Date of Surrender (Policy Value on date of surrender – Policy Value on Rider Date – Premiums paid after Rider Date + Surrenders since Rider Date that exceeded Rider Earnings = $150,000 - $100,000 - $25,000 + 0):	$	25,000
Amount of Surrender that exceeds Rider Earnings ($30,000 - $25,000):	$	5,000
Base Policy Death Benefit on the date of Death Benefit Calculation:	$	200,000
Policy Value on the date of Death Benefit Calculations:	$	175,000
Rider Earnings (= Policy Value on date of Death Benefit Calculations – policy value on Rider Date – Premiums since Rider Date + Surrenders since Rider Date that exceeded Rider Earnings = $175,000 - $100,000 - $25,000 + $5,000):	$	55,000
Additional Death Benefit Amount (= Additional Death Benefit Factor * Rider Earnings = 40%* $55,000):	$	22,000
Total Death Benefit paid (=Base policy death benefit plus Additional Death Benefit Amount):	$	222,000

Example 2

Policy Value on the Rider Date:	$	100,000
Premiums paid after the Rider Date before Surrender:	$	0
Gross Partial Surrenders after the Rider Date:	$	0
Base Policy Death Benefit on the date of Death Benefit Calculation:	$	100,000
Policy Value on the date of Death Benefit Calculations:	$	75,000
Rider Earnings (= Policy Value on date of death benefit calculations – policy value on Rider Date – Premiums since Rider Date + Surrenders since Rider Date that exceeded Rider Earnings = $75,000 - $100,000 - $0 + $0):	$	0
Additional Death Benefit Amount (= Additional Death Benefit Factor * Rider Earnings = 40%* $0):	$	0
Total Death Benefit paid (=Base policy death benefit plus Additional Death Benefit Amount):	$	100,000

126

APPENDIX

ADDITIONAL DEATH DISTRIBUTION+ RIDER — ADDITIONAL INFORMATION

Assume the Additional Death Distribution+ is added to a new policy opened with $100,000 initial premium. The annuitant is less than age 71 on the Rider Date. On the first and second Rider Anniversaries, the Policy Value is $110,000 and $95,000 respectively when the Rider Fees are deducted. The annuitant adds $25,000 premium in the 3rd Rider Year when the Policy Value is equal to $115,000 and then takes a withdrawal of $35,000 during the 4th Rider Year when the Policy Value is equal to $145,000. After 5 years, the Policy Value is equal to $130,000 and the death proceeds are equal to $145,000.

Example 1

Account Value on Rider Date (equals initial policy value since new policy)	$	100,000
Additional Death Benefit during first Rider Year	$	0
Rider Fee on first Rider Anniversary (= Rider Fee * Policy Value = 0.55% * $110,000)	$	605
Additional Death Benefit during 2nd Rider Year (= sum of total Rider Fees paid)	$	605
Rider Fee on second Rider Anniversary (= Rider Fee * Policy Value = 0.55% * $95,000)	$	522.50
Additional Death Benefit during 3rd Rider Year (= sum of total Rider Fees paid = $605 + $522.50)	$	1,127.50
Rider Benefit Base in 3rd Rider Year prior to Premium addition (= Account Value less premiums added since Rider Date = $115,000 – $0)	$	115,000
Rider Benefit Base in 3rd Rider Year after Premium addition (= $140,000 - $25,000)	$	115,000
Rider Benefit Base in 4th Rider Year prior to withdrawal (= Account Value less premiums added since Rider Date = $145,000 - $25,000)	$	120,000
Rider Benefit Base in 4th Rider Year after withdrawal = (Account Value less premiums added since Rider Date =$110,000 - $25,000)	$	85,000
Rider Benefit Base in 5th Rider Year (= $130,000 - $25,000)	$	105,000
Additional Death Benefit = Rider Benefit Percentage * Rider Benefit Base = 30% * $105,000	$	31,500
Total Death Proceeds in 5th Rider Year (= base policy Death Proceeds + Additional Death Benefit Amount = $145,000 + $31,500)	$	176,500

127

APPENDIX

GUARANTEED LIFETIME WITHDRAWAL BENEFIT COMPARISON TABLE

Important aspects of the Living Benefits Rider, the Retirement Income Choice^® 1.2 Rider, the Income Link^® Rider or the Retirement Income Max^SM Rider are summararized in the following chart.

Note: The Living Benefits Rider, the Retirement Income Choice^® 1.2 Rider, the Income Link^® Rider or the Retirement Income Max^SM Rider and any additional options available under these riders, may vary for certain policies and may not be available for all policies; the Guaranteed Lifetime Withdrawal Benefit Riders may not be available in all states. You should consult with tax and financial professionals to determine which of these riders is appropriate for you.

Living Benefits Rider	Retirement Income Choice® 1.2 Rider	Income Link® Rider	Retirement Income MaxSM Rider
Benefit:	Benefit:	Benefit:	Benefit:
•        Provides:	•        Provides	•        Provides:	•        Provides:
(1)Guaranteed Minimum Accumulation Benefit (“GMAB”)—Ten years after you elect the rider (“guaranteed future value date”), your policy value will equal your guaranteed future value (calculated as described below). After that date, the guaranteed future value equals zero.	(1)Guaranteed Lifetime Withdrawal Benefit (“GLWB”)—i.e., a level of cash withdrawals (and payments from us, if necessary) regardless of the performance of the Designated Investment Option or the Open Allocation Option that you select.	(1) Guaranteed Lifetime Withdrawal Benefit (“GLWB”)—i.e., a series of cash withdrawals (and payments from us, if necessary), which are based on a withdrawal percentage that is higher for a defined period and lower thereafter, regardless of the Designated Investment Option that you select.	(1) Guaranteed Lifetime Withdrawal Benefit (“GLWB”)—i.e., a level of cash withdrawals (and payments from us, if necessary) regardless of the performance of the designated investment choices that you select – if you invest in certain designated investment choices.
(2) Guaranteed Minimum Withdrawal Benefit (“GMWB”)—a maximum annual withdrawal amount (calculated as described below) regardless of your policy value; we account for withdrawals you take under the rider by applying two different withdrawal guarantees, “principal back,” for withdrawals of up to 7% of your total withdrawal base, or “for life,” for withdrawals up to 5% of your total withdrawal base.	(2) Growth—On each of the first 10 rider anniversaries, we add an annual growth credit (5% of the withdrawal base immediately before the rider anniversary) to the withdrawal base if no withdrawals have occurred during the preceding rider year. (3) Automatic Step-Up—We will automatically step-up the withdrawal base on each rider anniversary. You can opt out of the automatic step-up if the automatic step-up would result in an increase in the rider fee percentage.	(2) Automatic Step-Up—We will automatically step-up the withdrawal base on each rider anniversary. You can opt out of the automatic step-up if the automatic step-up would result in an increase in the rider fee percentage.	(2) Growth—On each of the first 10 rider anniversaries, we add an annual growth credit (5% of the withdrawal base immediately before the rider anniversary) to the withdrawal base if no withdrawals have occurred during the preceding rider year. (3) Automatic Step-Up—We will automatically step-up the withdrawal base on each rider anniversary. You can opt out of the automatic step-up if the automatic step-up would result in an increase in the rider fee percentage.

128

Guaranteed Lifetime Withdrawal Benefit Comparison Table — (Continued)

Living Benefits Rider	Retirement Income Choice® 1.2 Rider	Income Link® Rider	Retirement Income MaxSM Rider
•      Upgrades:	•      Upgrades:
(1) Before the annuitant’s 86th birthday, you can upgrade the total withdrawal base (for GMWB) and the guaranteed future value (for GMAB) by sending us written notice. (2) If you upgrade, the current rider terminates and a new rider is issued (which may have a higher rider fee).	You may request by sending us written notice. If you upgrade, the current rider terminates and a new rider is issued (which may have a higher rider fee).If you have elected the joint life option under the rider, you cannot elect a manual upgrade if the annuitant or an annuitant’s spouse is 86 or older (unless state law requires a lower maximum age).

129

Guaranteed Lifetime Withdrawal Benefit Comparison Table — (Continued)

Living Benefits Rider	Retirement Income Choice ® 1.2 Rider	Income Link ® Rider	Retirement Income MaxSM Rider
	•      Additional Options:	•      Additional Options:	•      Additional Options:
	(1) Death Benefit Option—You may add an amount to the death benefit payable under the base policy. (2) Joint Life Option—You may elect to postpone termination of the rider until the later of the death of the annuitant or the death of the annuitant’s spouse. The annuitant’s spouse must be either a joint owner (along with the annuitant) or the sole primary beneficiary (without a joint owner). (3) Income Enhancement Option—If the rider has been in effect for at least 12 months, then you may elect to have your withdrawal percentage double if either the annuitant or the annuitant’s spouse, if the joint life option is elected, is confined in a hospital or nursing facility because of a medical necessity, and has been so confined for an “elimination period” (i.e., 180 days within the last 365 days). You cannot elect this option if the qualifying person(s) is/are already confined in a hospital or nursing facility when the rider is elected. In addition, the increase to the withdrawal percentage stops when the qualifying person(s) is/are no longer confined.	(1) Joint Life Option—You may elect to postpone termination of the rider until the later of the death of the annuitant or the death of the annuitant’s spouse. The annuitant’s spouse must be either a joint owner (along with the annuitant) or the sole primary beneficiary (without a joint owner).	(1) Joint Life Option—You may elect to postpone termination of the rider until the later of the death of the annuitant or the death of the annuitant’s spouse. The annuitant’s spouse must be either a joint owner (along with the annuitant) or the sole primary beneficiary (without a joint owner).
Availability:	Availability:	Availability:	Availability:
•      0 - 80 (unless state law requires a lower maximum issue age	•      Younger than age 86 (unless state law requires a lower maximum issue age)	•      At least 55 years old and not yet age 81 (unless state law requires a lower maximum issue age)	•      Younger than age 86 (unless state law requires a lower maximum issue age)

130

Guaranteed Lifetime Withdrawal Benefit Comparison Table — (Continued)

Living Benefits Rider	Retirement Income Choice ® 1.2 Rider	Income Link ® Rider	Retirement Income MaxSM Rider
Charge:	Charges:	Charges:	Charges:
(1) 0.90% of total withdrawal base on each rider anniversary under the “principal back” withdrawal guarantee under the rider.	(1) for Base Benefit only—0.45% to 1.40% annually (single and joint life) of withdrawal base deducted on each rider quarter;	(1) 0.90% annually (single life and joint life) of withdrawal base deducted on each rider quarter.	(1) 1.00% annually (single life and joint life) of withdrawal base deducted on each rider quarter.
	(2) Open Investment Option—1.20% annually (single life and joint life) of withdrawal base deducted on each rider quarter;
	(3)with Death Benefit Option— 0.25% (single life) or 0.20% (joint life) annually of withdrawal base deducted on each rider quarter, in addition to the base benefit fee;
	(4) with Income Enhancement Option—0.15% (single life) or 0.30% (joint life) annually of withdrawal base deducted on each rider quarter, in addition to the base benefit fee.
Investment Restrictions:	Investment Restrictions:	Investment Restrictions:	Investment Restrictions:
•      Portfolio Allocation Method (“PAM”)—We monitor your policy value and, as we deem necessary to support the guarantees under the rider, may transfer amounts between investment options that we designate and the variable investment choices that you select.	•      Designated Investment option—You must allocate 100% of your policy value to one or more investment options that we designate. •      Open Investment option (“OA”)—We monitor your policy value and, as we deem necessary to support the guarantees under the rider, may transfer amounts between investment options that we designate and the variable investment choices that you select.	•      Designated Investment option—You must allocate 100% of your policy value to one or more investment options that we designate.	•      You must allocate 100% of your policy value to one or more investment options that we designate.

131

APPENDIX

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS

The following examples show the effect of withdrawals on the benefits under the Living Benefits Rider.

GUARANTEED MINIMUM ACCUMULATION BENEFIT

Gross partial withdrawals will reduce the guaranteed future value by an amount equal to the greater of:

1) the gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the amount of gross partial withdrawal;

B is the policy value immediately prior to the gross partial withdrawal; and

C is the guaranteed future value immediately prior to the gross partial withdrawal.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under the guaranteed minimum accumulation benefit.

EXAMPLE 1:

Assumptions:

Policy value prior to withdrawal (“PV”) = $90,000

Guaranteed future value prior to withdrawal (“GFV”) = $100,000

Gross withdrawal amount (“WD”) = $10,000

Step One. What is the pro rata value of the amount withdrawn?

1. Formula is (WD / PV) * GFV = pro rata amount

2. ($10,000 / $90,000) * $100,000 = $11,111.11

Step Two. Which is larger, the $10,000 withdrawal or the $11,111.11 pro rata amount?

$11,111.11 pro rata amount

Step Three. After the withdrawal is taken, what will be new guaranteed future value?

$100,000 - $11,111.11 = $88,888.89

Result. If no more withdrawals are taken, the guaranteed future value on the 10th rider anniversary is $88,888.89.

132

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

EXAMPLE 2:

Assumptions:

PV = $120,000

GFV = $100,000

WD = $10,000

Step One. What is the pro rata value of the amount withdrawn?

1. Formula is (WD / PV) * GFV = pro rata amount

2. ($10,000 / $120,000) * $100,000 = $8,333.33

Step Two. Which is larger, the $10,000 withdrawal or the $8,333.33 pro rata amount?

$10,000 withdrawal

Step Three. After the withdrawal is taken, what will be new guaranteed future value?

$100,000 - $10,000 = $90,000

Result. If no more withdrawals are taken, the guaranteed future value on the 10th Rider Anniversary is $90,000.

GUARANTEED LIFETIME WITHDRAWAL BENEFIT

Total Withdrawal Base. Gross partial withdrawals up to the maximum annual withdrawal amount will not reduce the total withdrawal base. Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the total withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the total withdrawal base prior to the withdrawal of the excess amount.

Minimum Remaining Withdrawal Amount. Gross partial withdrawals up to the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by the same amount (dollar-for-dollar). Gross partial withdrawals in excess of the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

133

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the minimum remaining withdrawal amount after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under the guaranteed lifetime withdrawal benefit.

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Minimum remaining withdrawal amount (“MRWA”)

2. Total withdrawal base (“TWB”)

3. Maximum annual withdrawal amount (“MAWA”)

EXAMPLE 1 (7% “PRINCIPAL BACK”):

Assumptions:

TWB = $100,000

MRWA = $100,000

7% WD would be $7,000 (7% of the current $100,000 total withdrawal base)

WD = $7,000

Excess withdrawal (“EWD”) = None

PV = $100,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the withdrawal greater than the “principal back” maximum annual withdrawal amount?

No. There is no excess withdrawal under the “principal back” guarantee if no more than $7,000 is withdrawn.

Step Two. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $7,000 (there is no excess to deduct)

2. $100,000 - $7,000 = $93,000.

Result. In this example, because no portion of the withdrawal was in excess of $7,000, the “principal back” total withdrawal base does not change and the “principal back” minimum remaining withdrawal amount is $93,000.00.

EXAMPLE 2 (7% “PRINCIPAL BACK”):

Assumptions:

TWB = $100,000

134

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

MRWA = $100,000

7% WD would be $7,000 (7% of the current $100,000 total withdrawal base)

WD = $8,000

EWD = $1,000 ($8,000 - $7,000)

PV = $90,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the total withdrawal greater than the maximum annual withdrawal amount?

Yes. $8,000 - $7,000 = $1,000 (the excess withdrawal amount)

Step Two. Calculate how much of the “principal back” minimum remaining withdrawal amount is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV - 7% WD)) * (MRWA - 7% WD)

2. ($1,000 / ($90,000 - $7,000)) * ($100,000 - $7,000) = $1,120.48

Step Three. Which is larger, the actual $1,000 excess withdrawal amount or the $1,120.48 pro rata amount?

$1,120.48 pro rata amount

Step Four. What is the “principal back” minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $7,000 + $1,120.48 (pro rata excess) = $8,120.48

2. $100,000 - $8,120.48 = $91,879.52

Result. The “principal back” minimum remaining withdrawal amount is $91,879.52.

NOTE. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the total withdrawal base needs to be adjusted as well as a new lower maximum annual withdrawal amount. Had the withdrawal for this example not been more than $7,000, the “principal back” total withdrawal base would remain at $100,000 and the “principal back” maximum annual withdrawal amount would be $7,000. However, because an excess withdrawal has been taken, the total withdrawal base is also changed (this is the amount the 7% is based on).

New “principal back” total withdrawal base:

Step One. The total withdrawal base is only reduced by the excess withdrawal amount or the pro rata amount if greater.

Step Two. Calculate how much the total withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV - 7% WD)) * TWB before any adjustments

2. ($1,000 / ($90,000 - $7,000)) * $100,000 = $1,204.82

135

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

Step Three. Which is larger, the actual $1,000 excess withdrawal amount or the $1,204.82 pro rata amount?

$1,204.82 pro rata amount.

Step Four. What is the new total withdrawal base upon which the maximum annual withdrawal amount is based?

$100,000 - $1,204.82 = $98,795.18

Result. The new “principal back” total withdrawal base is $98,795.18

New “principal back” maximum annual withdrawal amount:

Because the “principal back” total withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new maximum annual withdrawal amount for the 7% “principal back” guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Step One. What is the new “principal back” maximum annual withdrawal amount?

$98,795.18 (the adjusted total withdrawal base) * 7% = $6,915.66

Result. Going forward, the maximum you can take out in a rider year is $6,915.66 without causing an excess withdrawal for the “principal back” guarantee and further reduction of the “principal back” total withdrawal base.

EXAMPLE 3 (5% “FOR LIFE”):

Assumptions:

TWB = $100,000

MRWA = $100,000

5% WD would be $5,000 (5% of the current $100,000 total withdrawal base)

WD = $5,000

Excess withdrawal (“EWD”) = None

PV = $100,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the withdrawal greater than the “for life” maximum annual withdrawal amount?

No. There is no excess withdrawal under the “for life” guarantee if no more than $5,000 is withdrawn.

Step Two. What is the minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $5,000 (there is no excess to deduct).

2. $100,000 - $5,000 = $95,000.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the “for life” total withdrawal base does not change and the “for life” minimum remaining withdrawal amount is $95,000.00.

136

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

EXAMPLE 4 (5% “FOR LIFE”):

Assumptions:

TWB = $100,000

MRWA = $100,000

5% WD would be $5,000 (5% of the current $100,000 total withdrawal base)

WD = $7,000

EWD = $2,000 ($7,000 - $5,000)

PV = $90,000

You = Owner and Annuitant (Age 60)

Step One. Is any portion of the total withdrawal greater than the maximum annual withdrawal amount?

Yes. $7,000 - $5,000 = $2,000 (the excess withdrawal amount)

Step Two. Calculate how much of the “for life” minimum remaining withdrawal amount is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV - 5% WD)) * (MRWA - 5% WD)

2. ($2,000 / ($90,000 - $5,000)) * ($100,000 - $5,000) = $2,235.29

Step Three. Which is larger, the actual $2,000 excess withdrawal amount or the $2,235.29 pro rata amount?

$2,235.29 pro rata amount

Step Four. What is the “for life” minimum remaining withdrawal amount after the withdrawal has been taken?

1. Total to deduct from the minimum remaining withdrawal amount is $5,000 + $2,235.29 (pro rata excess) = $7,235.29

2. $100,000 - $7,235.29 = $92,764.71

Result. The “for life” minimum remaining withdrawal amount is $92,764.71.

NOTE. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the total withdrawal base needs to be adjusted as well as a new lower maximum annual withdrawal amount. Had the withdrawal for this example not been more than $5,000, the “for life” total withdrawal base would remain at $100,000 and the “for life” maximum annual withdrawal amount would be $5,000. However, because an excess withdrawal has been taken, the total withdrawal base is also changed (this is the amount the 5% is based on).

New “for life” total withdrawal base:

Step One. The total withdrawal base is only reduced by the excess withdrawal amount or the pro rata amount if greater.

137

LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS — (Continued)

Step Two. Calculate how much the total withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV - 5% WD)) * TWB before any adjustments

2. ($2,000 / ($90,000 - $5,000)) * $100,000 = $2,352.94

Step Three. Which is larger, the actual $2,000 excess withdrawal amount or the $2,352.94 pro rata amount?

$2,352.94 pro rata amount.

Step Four. What is the new total withdrawal base upon which the maximum annual withdrawal amount is based?

$100,000 - $2,352.94 = $97,647.06

Result. The new “for life” total withdrawal base is $97,647.06

New “for life” maximum annual withdrawal amount:

Because the “for life” total withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new maximum annual withdrawal amount for the 5% “for life” guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Step One. What is the new “for life” maximum annual withdrawal amount?

$97,647.06 (the adjusted total withdrawal base) * 5% = $4,882.35

Result. Going forward, the maximum you can take out in a rider year is $4,882.35 without causing an excess withdrawal for the “for life” guarantee and further reduction of the “for life” total withdrawal base.

138

APPENDIX

GUARANTEED LIFETIME WITHDRAWAL BENEFIT

ADJUSTED PARTIAL SURRENDERS - RETIREMENT INCOME CHOICE^® 1.2 RIDER

AND RETIREMENT INCOME CHOICE^® 1.4 RIDER (RETIREMENT INCOME

CHOICE^® 1.4 - NO LONGER AVAILABLE FOR NEW SALES)

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Withdrawal Base (“WB”)

2. Rider Withdrawal Amount (“RWA”)

3. Rider Death Benefit (“RDB”)

Withdrawal Base. Gross partial withdrawals in a rider year up to the rider withdrawal amount will not reduce the withdrawal base. Gross partial withdrawals in a rider year in excess of the rider withdrawal amount will reduce the withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the withdrawal base prior to the withdrawal of the excess amount.

Rider Death Benefit. Gross partial withdrawals in a rider year up to the rider withdrawal amount will reduce the rider death benefit by the amount withdrawn (dollar-for-dollar). Gross partial withdrawals in a rider year in excess of the rider withdrawal amount will reduce the rider death benefit by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);

B is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the rider death benefit after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under this guaranteed lifetime withdrawal benefit.

Example 1 (Base):

Assumptions:

Withdrawal Base (“WB”) = $100,000

139

Guaranteed Lifetime Withdrawal Benefit — (Continued)

Rider Withdrawal Amount (“RWA”) = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)

Gross partial withdrawal (“GPWD”) = $5,000

Excess withdrawal (“EWD”) = None

Policy Value (“PV”) = $100,000

You = owner and annuitant, age 71 at time withdrawals begin, which means Withdrawal Percentage is 5%.

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee since no more than $5,000 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the withdrawal base does not change.

Example 2 (Excess Withdrawal):

Assumptions:

WB = $100,000

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)

GPWD = $7,000

EWD = $2,000 ($7,000 - $5,000)

PV = $90,000

You = owner and annuitant, age 71 at time withdrawals begin, which means Withdrawal Percentage is 5%.

Result. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $5,000, the withdrawal base would remain at $100,000 and the rider withdrawal amount would be $5,000 starting on the next rider anniversary. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5% is based on).

New withdrawal base:

Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount, if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV - 5% withdrawal)) * WB before any adjustments

2. ($2,000 / ($90,000 - $5,000)) * $100,000 = $2,353

Step Three. Which is larger, the actual $2,000 excess withdrawal or the $2,353 pro rata amount?

$2,353 pro rata amount.

140

Guaranteed Lifetime Withdrawal Benefit — (Continued)

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?

$100,000 - $2,353 = $97,647

Result. The new withdrawal base is $97,647

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Question: What is the new rider withdrawal amount?

$97,647 (the adjusted withdrawal base) * 5% = $4,882

Result. Going forward, the maximum you can take out in a year without causing an excess withdrawal and further reduction of the withdrawal base (assuming there are no future automatic step-ups) is $4,882.

Example 3 (Base demonstrating growth):

Assumptions:

WB = $100,000

Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 8 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 8 = $147,745

RWA = 5% withdrawal beginning 8 years from the rider date would be $7,387 (5% of the then-current $147,745 withdrawal base)

GPWD = $7,387

EWD = None

PV = $90,000 in 8 years

You (if you elected RIC 1.2 or RIC 1.4 ) = owner and annuitant, age 68 on rider issue; age 76 at time withdrawals begin, which means Withdrawal Percentage is 5%

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $7,387 is withdrawn in a rider year.

Result. In this example, because no portion of the withdrawal was in excess of $7,387, the withdrawal base does not change.

141

Guaranteed Lifetime Withdrawal Benefit — (Continued)

Example 4 (Base demonstrating WB growth with Additional Death Payment Option):

Assumptions:

You (if you elected RIC 1.2 or RIC 1.4 ) = owner and annuitant, age 68 on rider issue; age 76 at time withdrawals begin, which means Withdrawal Percentage is 5%

WB at rider issue = $100,000

Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 8 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 8 = $147,745

Rider Death Benefit (“RDB”) (optional additional death benefit for additional cost) = $100,000

RWA = 5% withdrawal beginning 8 years from the rider date would be $7,387 (5% of the then-current $147,745 withdrawal base)

GPWD = $7,387

EWD = None

PV = $90,000 in 8 years

Step One. Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $7,387 is withdrawn.

Step Two. What is the rider death benefit after the withdrawal has been taken?

1. Total to deduct from the rider death benefit is $7,387 (there is no excess to deduct)

2. $100,000 - $7,387 = $92,613.

Result. In this example, because no portion of the withdrawal was in excess of $7,387, the total withdrawal base does not change and the rider death benefit reduces to $92,613.

Example 5 (Base with WB growth with Additional Death Payment Option illustrating excess withdrawal):

Assumptions:

You = owner and annuitant, age 61 on rider issue; age 74 at time withdrawals begin, which means withdrawal percentage is 5%.

WB at rider issue = $100,000

Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 10 years (assuming an annual growth rate percentage of 5.0%) = the greater of $100,000 * (1 + .05) ^ 10 = $162,889.

RDB (optional additional death benefit for additional cost) = $100,000

RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)

GPWD = $15,000

EWD = $6,856 ($15,000 - $8,144)

PV = $90,000 in 10 years

142

Guaranteed Lifetime Withdrawal Benefit — (Continued)

Step One. Is any portion of the total withdrawal greater than the rider withdrawal amount?

Yes. $15,000 - $8,144 = $6,856 (the excess withdrawal amount)

Step Two. Calculate how much of the rider death benefit is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV - 5% withdrawal)) * (RDB - 5% withdrawal)

2. ($6,856 / ($90,000 - $8,144)) * ($100,000 - $8,144) = $7,694

Step Three. Which is larger, the actual $6,856 excess withdrawal amount or the $7,694 pro rata amount?

$7,694 pro rata amount.

Step Four. What is the rider death benefit after the withdrawal has been taken?

1. Total to deduct from the rider death benefit is $8,144 (RWA) + $7,694 (pro rata excess) = $15,838

2. $100,000 - $15,838 = $84,162.

Result. The rider benefit is $84,162.

Note: Because there was an excess withdrawal amount in this example, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $8,144, the withdrawal base would remain at $162,889 and the rider withdrawal amount would be $8,144. However, because an excess withdrawal has been taken, the withdrawal base is also reduced.

New benefit base:

Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD/(PV - 5% withdrawal)) * WB before any adjustments

2. ($6,856 / ($90,000 - $8,144)) * $162,889 = $13,643

Step Three. Which is larger, the actual $6,856 excess withdrawal amount or the $13,643 pro rata amount?

$13,643 pro rata amount.

Step Four. What is the new withdrawalt base upon which the rider withdrawal amount is based?

$162,889 - $13,643 = $149,246

Result. The new benefit base is $149,246

143

Guaranteed Lifetime Withdrawal Benefit — (Continued)

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% benefit percentage guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Step One. What is the new rider withdrawal amount?

$149,246 (the adjusted withdrawal base) * 5% = $7,462

Result. Going forward, the maximum you can take out in a year without causing an excess withdrawal and further reduction of the benefit base is $7,462.

144

APPENDIX

GUARANTEED LIFETIME WITHDRAWAL BENEFIT

ADJUSTED PARTIAL SURRENDERS - INCOME LINK^® RIDER

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Withdrawal Base (“WB”)

2. Rider Withdrawal Amount (“RWA”)

3. Income Link^® Rider Systematic Withdrawals (“ILSW”)

Withdrawal Base. Income Link^® rider systematic withdrawals (and certain minimum required distributions) will not reduce the withdrawal base. Non-Income Link^® rider systematic withdrawals (and minimum required distributions calculated other than as provided for in the rider or not taken via a systematic withdrawal program) will reduce the withdrawal base by an amount equal to the greater of:

1) the amount of the non-Income Link^® rider systematic withdrawal (or non-qualifying minimum required distribution); and

2) a pro rata amount, the result of (A / B) * C, where:

A is the amount in 1 above;

B is the policy value prior to the withdrawal; and

C is the withdrawal base prior to the withdrawal.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under this guaranteed lifetime withdrawal benefit.

Assumptions:

WB = $100,000

RWA = 6% withdrawal would be $6,000 (6% of the current $100,000 withdrawal base)

ILSW = $500 per month

Non-ILSW = $10,000 (taken after the eighteenth monthly Income Link^® rider systematic withdrawal)

PV = $90,000

Assumes single life withdrawal option of 6% for 6 years and 4% thereafter has been elected. Non-Income Link^® rider systematic withdrawal occurs during the second Income Link^® rider withdrawal year (which means the withdrawal percentage is 6%).

Result. For the guaranteed lifetime withdrawal benefit, because there was a non-Income Link^® rider systematic withdrawal, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount and Income Link^® rider systematic withdrawal amount calculated.

New withdrawal base:

Step One. The withdrawal base is reduced only by the amount of the amount of the non-Income Link^® rider systematic withdrawal or the pro rata amount, if greater.

145

Guaranteed Lifetime Withdrawal Benefit — (Continued)

Step Two. Calculate how much the withdrawal base is affected by the non-Income Link^® rider systematic withdrawal.

1. The formula is (Non-ILSW / (PV before withdrawal)) * WB before any adjustments

2. ($10,000 / ($90,000)) * $100,000 = $11,111

Step Three. Which is larger, the actual $10,000 non-Income Link^® rider systematic withdrawal or the $11,111 pro rata amount?

$11,111 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?

$100,000 - $11,111 = $88,889

Result. The new withdrawal base is $88,889. Please note the percentage reduction in the withdrawal base is used in calculating the revised RWA and ILSW.

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the non-Income Link^® rider systematic withdrawal) we have to calculate a new (remaining) rider withdrawal amount. This calculation assumes no more non-Income Link^® rider systematic withdrawal activity prior to the next Income Link^® rider withdrawal year.

Question: What is the new (remaining) rider withdrawal amount for the remainder of the Income Link^® rider withdrawal year?

$3,000 (the remaining rider withdrawal amount) - ($3000*11.11%) = $2,667

Result. Going forward, the maximum you can take out in a benefit year without causing a negative withdrawal base adjustment and further reduction of the withdrawal base (assuming there are no future automatic step-ups) is $5,333.

New Income Link^® rider systematic withdrawal amount:

Because the withdrawal base was adjusted (due to the non-Income Link^® rider systematic withdrawal) we have to calculate a new Income Link^® rider systematic withdrawal amount. This calculation assumes no more non-Income Link^® rider systematic withdrawal activity prior to the next Income Link^® rider withdrawal year.

Question: What is the new Income Link^® rider systematic withdrawal amount?

$500 (the old Income Link^® rider systematic withdrawal amount) - ($500*11.11%) = $444

Result. Going forward (until the seventh Income Link^® rider withdrawal year), the Income Link^® rider systematic withdrawal amount (assuming there are no future automatic step-ups) is $444

146

APPENDIX

GUARANTEED LIFETIME WITHDRAWAL BENEFIT

ADJUSTED PARTIAL SURRENDERS - RETIREMENT INCOME MAX^SM RIDER

When a withdrawal is taken, the following parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Withdrawal Base (“WB”)

2. Rider Withdrawal Amount (“RWA”)

Withdrawal Base. Gross partial withdrawals in a rider year up to the rider withdrawal amount will not reduce the withdrawal base. Gross partial withdrawals in a rider year in excess of the rider withdrawal amount will reduce the withdrawal base by an amount equal to the greater of:

1) the excess gross partial withdrawal amount; and

2) a pro rata amount, the result of (A / B) * C, where:

A is the excess gross partial withdrawal (the amount in excess of the rider withdrawal amount remaining prior to the withdrawal);

B is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the withdrawal base prior to the withdrawal of the excess amount.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under this guaranteed lifetime withdrawal benefit.

Example 1 (Base):

Assumptions:

Withdrawal Base (“WB”) = $100,000

Rider Withdrawal Amount (“RWA”) = 5.5% withdrawal would be $5,500 (5.5% of the current $100,000 withdrawal base)

Gross partial withdrawal (“GPWD”) = $5,500

Excess withdrawal (“EWD”) = None

Policy Value (“PV”) = $100,000 (PV after GPWD = $94,500)

You = owner and annuitant, age 71 at time withdrawals begin, which means Withdrawal Percentage is 5.5%.

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee since no more than $5,500 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $5,500, the withdrawal base does not change.

147

Example 2 (Excess Withdrawal):

Assumptions:

WB = $100,000

RWA = 5.5% withdrawal would be $5,500 (5.5% of the current $100,000 withdrawal base)

GPWD = $7,000

EWD = $1,500 ($7,000 - $5,500)

PV = $90,000

You = owner and annuitant, age 71 at time withdrawals begin, which means Withdrawal Percentage is 5.5%.

Result. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $5,500, the withdrawal base would remain at $100,000 and the rider withdrawal amount would be $5,500 starting on the next rider anniversary. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5.5% is based on).

New withdrawal base:

Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount, if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV - 5.5% withdrawal)) * WB before any adjustments

2. ($1,500 / ($90,000 - $5,500)) * $100,000 = $1,775

Step Three. Which is larger, the actual $1,500 excess withdrawal or the $1,775 pro rata amount?

$1,775 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?

$100,000 - $1,775 = $98,225

Result. The new withdrawal base is $98,225

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5.5% guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.

Question: What is the new rider withdrawal amount?

$98,225 (the adjusted withdrawal base) * 5.5% = $5,402.38

Result. Going forward, the maximum you can take out in a year without causing an excess withdrawal and further reduction of the withdrawal base (assuming there are no future automatic step-ups) is $5,402.38.

148

Example 3 (Base demonstrating growth):

Assumptions:

WB = $100,000

Automatic step-up never occurs and no withdrawals are taken.

WB in 8 years (assuming an annual growth rate percentage of 5%) = $100,000 * (1 + .05) ^ 8 = $147,746

RWA = 5.5% withdrawal beginning 8 years from the rider date would be $8,126 (5.5% of the then-current $147,746 withdrawal base)

GPWD = $8,126

EWD = None

PV = $90,000 in 8 years

You = owner and annuitant, age 63 on rider issue; age 71 at time withdrawals begin, which means Withdrawal Percentage is 5.5%.

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $8,126 is withdrawn in a rider year.

Result. In this example, because no portion of the withdrawal was in excess of $8,126, the withdrawal base does not change.

Example 4 (Minimum Required Distribution “MRD”):

WB = $100,000

Automatic Step-up and growth never occur.

RWA for rider year beginning July 1, 2010 = 5.5% withdrawal would be $5,500 (5.5% of the current $100,000 withdrawal base.

MRD for 2010 = $6,000 (calculated as set forth in the rider)

MRD for 2011 = $6,500 (calculated as set forth in the rider)

GPWD on February 1, 2011 = $6,500

EWD = $500

Question: Is any portion of the withdrawal greater than the rider withdrawal amount or the minimum required withdrawal calculated pursuant to the terms of the rider?

Yes. Because more than $6,000 (the greater of the RWA ($5,500) or MRD for the tax year on that rider anniversary ($6,000) was withdrawn, there is an excess withdrawal of $500 (6,500 - 6,000 = 500). Please note, even though the withdrawal occurred in 2011, the MRD for 2011 does not become part of the RWA calculation until July 1, 2011 (the rider anniversary during that tax year).

Result: Because there was an excess withdrawal amount, the withdrawal base needs to be adjusted and a new lower withdrawal amount calculated. See Example 2 (Excess Withdrawal) for an example ofhow the new withdrawal base and new rider withdrawal amount are calculated.

149

APPENDIX

HYPOTHETICAL EXAMPLE OF THE WITHDRAWAL BASE CALCULATION -

RETIREMENT INCOME MAX^SM RIDER

The following table demonstrates, on a purely hypothetical basis, the withdrawal base calculation for the Retirement Income Max^SM rider using an initial premium payment of $100,000 for a Single Life Option rider at an issue age of 80. All values shown are post transaction values.

Rider Year		Hypothetical Policy Value		Subsequent Premium Payment		Withdrawal		Excess WB Adjustment		Growth Amount		High Monthiversary Value		Withdrawal Base			Rider Withdrawal Amount
		$	100,000	$		$		$		$		$	100,000	$	100,000		$	6,500
	1	$	102,000	$		$		$		$		$	102,000	$	100,000		$	6,500
	1	$	105,060	$		$		$		$		$	105,060	$	100,000		$	6,500
	1	$	107,161	$		$		$		$		$	107,161	$	100,000		$	6,500
	1	$	110,376	$		$		$		$		$	110,376	$	100,000		$	6,500
	1	$	112,584	$		$		$		$		$	112,584	$	100,000		$	6,500
	1	$	115,961	$		$		$		$		$	115,961	$	100,000		$	6,500
	1	$	118,280	$		$		$		$		$	118,280	$	100,000		$	6,500
	1	$	121,829	$		$		$		$		$	121,829	$	100,000		$	6,500
	1	$	124,265	$		$		$		$		$	124,265	$	100,000		$	6,500
	1	$	120,537	$		$		$		$		$	124,265	$	100,000		$	6,500
	1	$	115,716	$		$		$		$		$	124,265	$	100,000		$	6,500
	1	$	109,930	$		$		$		$	105,000	$	124,265	$	124,265	1	$	8,077
	2	$	112,129	$		$		$		$		$	112,129	$	124,265		$	8,077
	2	$	115,492	$		$		$		$		$	115,492	$	124,265		$	8,077
	2	$	117,802	$		$		$		$		$	117,802	$	124,265		$	8,077
	2	$	121,336	$		$		$		$		$	121,336	$	124,265		$	8,077
	2	$	124,976	$		$		$		$		$	124,976	$	124,265		$	8,077
	2	$	177,476	$	50,000	$		$		$		$	177,476	$	174,265		$	11,327
	2	$	175,701	$		$		$		$		$	177,476	$	174,265		$	11,327
	2	$	172,187	$		$		$		$		$	177,476	$	174,265		$	11,327
	2	$	167,022	$		$		$		$		$	177,476	$	174,265		$	11,327
	2	$	163,681	$		$		$		$		$	177,476	$	174,265		$	11,327
	2	$	166,955	$		$		$		$		$	177,476	$	174,265		$	11,327
	2	$	170,294	$		$		$		$	182,979	$	177,476	$	182,979	2	$	11,894
	3	$	166,888	$		$		$		$		$	166,888	$	182,979		$	11,894
	3	$	171,895	$		$		$		$		$	171,895	$	182,979		$	11,894
	3	$	173,614	$		$		$		$		$	173,614	$	182,979		$	11,894
	3	$	178,822	$		$		$		$		$	178,822	$	182,979		$	11,894
	3	$	175,246	$		$		$		$		$	178,822	$	182,979		$	11,894
	3	$	151,741	$		$	20,000	$	9,279	$		$		$	173,699		$
	3	$	154,775	$		$		$		$		$		$	173,699		$
	3	$	159,419	$		$		$		$		$		$	173,699		$

150

Rider Year	Hypothetical Policy Value		Subsequent Premium Payment	Withdrawal	Excess WB Adjustment	Growth Amount	High Monthiversary Value	Withdrawal Base			Rider Withdrawal Amount
3	$	161,013	$	$	$	$	$	$	173,699		$
3	$	165,843	$	$	$	$	$	$	173,699		$
3	$	174,135	$	$	$	$	$	$	173,699		$
3	$	181,101	$	$	$	$	$	$	181,101	1	$	11,772

⁽¹⁾ Automatic Step Up Applied

⁽²⁾ Growth Applied

151

MEMBERS^® FREEDOM^SM VARIABLE ANNUITY

Issued by

TRANSAMERICA LIFE INSURANCE COMPANY

Supplement Dated May 1, 2011

to the

Prospectus dated May 1, 2011

We will not accept any premium payment that is allocated to the fixed account or the dollar cost averaging fixed account in excess of $5,000. We also will not accept any premium payment or transfer which would result in the aggregate policy value in the fixed account and the dollar cost averaging fixed account exceeding $5,000.

This Prospectus Supplement must be accompanied or preceded

by the Prospectus for the

Members^® Freedom^SM Variable Annuity dated May 1, 2011

STATEMENT OF ADDITIONAL INFORMATION

MEMBERS^® FREEDOM^SM VARIABLE ANNUITY

Issued through

SEPARATE ACCOUNT VA B

Offered by

TRANSAMERICA LIFE INSURANCE COMPANY

This Statement of Additional Information expands upon subjects discussed in the current prospectus for the MEMBERS^® Freedom^SM Variable Annuity offered by Transamerica Life Insurance Company. You may obtain a copy of the current prospectus, dated May 1, 2011, by calling (800) 525-6205, or write us at: Transamerica Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001. The prospectus sets forth information that a prospective investor should know before investing in a policy. Terms used in the current prospectus for the policy are incorporated in this Statement of Additional Information.

This Statement of Additional Information (SAI) is not a prospectus and should be read only in conjunction with the prospectuses for the policy and the underlying fund portfolios.

Dated: May 1, 2011

TABLE OF CONTENTS

GLOSSARY OF TERMS	3
THE POLICY — GENERAL PROVISIONS	6
Owner	6
Entire Policy	6
Misstatement of Age or Sex	7
Reallocation of Annuity Units After the Annuity Commencement Date	7
Annuity Payment Options	7
Death Benefit	8
Death of Owner	9
Assignment	9
Evidence of Survival	9
Non-Participating	9
Amendments	9
Employee and Agent Purchases	10
Present Value of Future Variable Payments	10
Stabilized Payments	10
CERTAIN FEDERAL INCOME TAX CONSEQUENCES	11
Tax Status of the Policy	11
Taxation of Annuities	12
Taxation of the Company	15
INVESTMENT EXPERIENCE	15
Accumulation Units	15
Annuity Unit Value and Annuity Payment Rates	17
HISTORICAL PERFORMANCE DATA	19
Money Market Yields	19
Total Returns	21
Other Performance Data	21
Adjusted Historical Performance Data	21
PUBLISHED RATINGS	22
STATE REGULATION OF TRANSAMERICA LIFE INSURANCE COMPANY	22
ADMINISTRATION	22
RECORDS AND REPORTS	22
DISTRIBUTION OF THE POLICIES	23
VOTING RIGHTS	23
OTHER PRODUCTS	24
CUSTODY OF ASSETS	24
LEGAL MATTERS	24
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	24
OTHER INFORMATION	25
FINANCIAL STATEMENTS	25
APPENDIX
OA METHOD TRANSFERS	26
APPENDIX
PAM METHOD TRANSFERS	31

2

GLOSSARY OF TERMS

Accumulation Unit — An accounting unit of measure used in calculating the policy value in the separate account before the annuity commencement date.

Adjusted Policy Value — The policy value increased or decreased by any excess interest adjustment.

Administrative and Service Office — Transamerica Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, IA 52499-0001, (800) 525-6205.

Annuitant — The person on whose life any annuity payments involving life contingencies will be based.

Annuity Commencement Date — The date upon which annuity payments are to commence. This date may be any date after the policy date and may not be later than the last day of the policy month following the month after the annuitant attains age 95. The earliest annuity commencement date is at least thirty days after you purchase your policy. The annuity commencement date may have to be earlier for qualified policies and may be earlier if required by state law.

Annuity Payment Option — A method of receiving a stream of annuity payments selected by the owner.

Annuity Unit — An accounting unit of measure used in the calculation of the amount of the second and each subsequent variable annuity payment.

Assumed Investment Return or AIR — The annual effective rate shown in the contract specifications section of the contract that is used in the calculation of each variable annuity payment.

Beneficiary — The person who has the right to the death benefit as set forth in the policy.

Business Day — A day when the New York Stock Exchange is open for regular trading.

Cash Value — The adjusted policy value less any rider fees (imposed upon surrender).

Code — The Internal Revenue Code of 1986, as amended.

Enrollment form — A written application, order form, or any other information received electronically or otherwise upon which the policy is issued and/or is reflected on the data or specifications page.

Excess Interest Adjustment — A positive or negative adjustment to amounts surrendered (both partial or full surrenders and transfers) or applied to annuity payment options from the fixed account guaranteed period options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by the Company since the date any payment was received by, or an amount was transferred to, the guaranteed period option. The excess interest adjustment can either decrease or increase the amount to be received by the owner upon full surrender or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively.

Fixed Account — One or more investment choices under the policy that are part of the Company’s general assets and are not in the separate account.

3

Free Amount — The amount that can be withdrawn each year without incurring any excess interest adjustment.

Guaranteed Lifetime Withdrawal Benefit — Any optional benefit under the policy that provides a guaranteed minimum withdrawal benefit, including Living Benefits Rider, the Retirement Income Choice^® 1.2 Rider, the Income Link^® Rider or the Retirement Income Max^SM Rider

Guaranteed Period Options — The various guaranteed interest rate periods of the fixed account which the Company may offer and into which premium payments may be paid or amounts transferred.

Nonqualified Policy — A policy other than a qualified policy.

Owner (You, Your) — The person who may exercise all rights and privileges under the policy. The owner during the lifetime of the annuitant and prior to the annuity commencement date is the person designated as the owner in the information provided to us to issue a policy.

Policy Date — The date shown on the policy data page attached to the policy and the date on which the policy becomes effective.

Policy Value — On or before the annuity commencement date, the policy value is equal to the owner’s:

• premium payments; minus

• gross partial surrenders (partial surrenders minus excess interest adjustments); plus

• interest credited in the fixed account; plus

• accumulated gains in the separate account; minus

• accumulated losses in the separate account; minus

• service charges, rider fees, premium taxes, transfer fees, and other charges, if any.

Policy Year — A policy year begins on the policy date and on each anniversary thereof.

Premium Payment — An amount paid to the Company by the owner or on the owner’s behalf as consideration for the benefits provided by the policy.

Qualified Policy — A policy issued in connection with retirement plans that qualify for special federal income tax treatment under the Code.

Separate Account — Separate Account VA B, a separate account established and registered as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”), to which premium payments under the policies may be allocated.

Separate Account Value — The portion of the policy value that is invested in the separate account.

Service Charge — An annual charge on each policy anniversary (and a charge at the time of surrender during any policy year) for policy maintenance and related administrative expenses. This annual charge is $35, but will not exceed 2% of the policy value.

Subaccount — A subdivision within the separate account, the assets of which are invested in a specified underlying fund portfolios.

4

Supportable Payment — The amount equal to the sum of the variable annuity unit values multiplied by the number of variable annuity units in each of the selected subaccounts.

Valuation Period — The period of time from one determination of accumulation unit values and annuity unit values to the next subsequent determination of values. Such determination shall be made on each business day.

Variable Annuity Payments — Payments made pursuant to an annuity payment option which fluctuate as to dollar amount or payment term in relation to the investment performance of the specified subaccounts within the separate account.

Written Notice — Written notice, signed by the owner, that gives the Company the information it requires and is received at the administrative and service office. For some transactions, the Company may accept an electronic notice, such as telephone instructions, instead of written notice. Such written or electronic notice must meet the requirements the Company establishes for such notices.

5

In order to supplement the description in the prospectus, the following provides additional information about Transamerica Life Insurance Company (the Company, we, us or our) and the policy, which may be of interest to a prospective purchaser.

THE POLICY — GENERAL PROVISIONS

Owner

The policy shall belong to the owner upon issuance of the policy after completion of an enrollment form and delivery of the initial premium payment. While the annuitant is living, the owner may: (1) assign the policy; (2) surrender the policy; (3) amend or modify the policy with the Company’s consent; (4) receive annuity payments or name a payee to receive the payments; and (5) exercise, receive and enjoy every other right and benefit contained in the policy. The exercise of these rights may be subject to the consent of any assignee or irrevocable beneficiary; and of your spouse in a community or marital property state.

Unless the Company has been notified of a community or marital property interest in the policy, it will rely on its good faith belief that no such interest exists and will assume no responsibility for inquiry.

Note carefully. If the owner predeceases the annuitant and no joint owner, primary beneficiary, or contingent beneficiary is alive or in existence on the date of death, the owner’s estate will become the new owner. If no probate estate is opened because the owner has precluded the opening of a probate estate by means of a trust or other instrument, that trust may not exercise ownership rights to the policy. It may be necessary to open a probate estate in order to exercise ownership rights to the policy.

The owner may change the ownership of the policy in a written notice. When this change takes effect, all rights of ownership in the policy will pass to the new owner. A change of ownership may have tax consequences.

When there is a change of owner, the change will not be effective until it is recorded in our records. Once recorded, it will take effect as of the date the owner signs the written notice, subject to any payment the Company has made or action the Company has taken before recording the change. Changing the owner does not change the designation of the beneficiary or the annuitant.

If ownership is transferred to a new owner (except to the owner’s spouse) because the owner dies before the annuitant, then (a) the cash value generally must be distributed to the new owner within five years of the owner’s death, or (b) annuity payments must be made for a period certain or for the new owner’s lifetime so long as any period certain does not exceed that new owner’s life expectancy, if the first payment begins within one year of your death.

Entire Policy

The policy, any endorsements or riders thereon, the enrollment form, or information provided in lieu thereof, constitute the entire contract between the Company and the owner. All statements in the enrollment form are representations and not warranties. No statement will cause the policy to be void or to be used in defense of a claim unless contained in the enrollment form or information provided in lieu thereof.

6

Misstatement of Age or Sex

If the age or sex of the annuitant or owner has been misstated, the Company will change the annuity benefit payable to that which the premium payments would have purchased for the correct age or sex. The dollar amount of any underpayment made by the Company shall be paid in full with the next payment due such person or the beneficiary. The dollar amount of any overpayment made by the Company due to any misstatement shall be deducted from payments subsequently accruing to such person or beneficiary. Any underpayment or overpayment will include interest at 5% per year, from the date of the wrong payment to the date of the adjustment. The age of the annuitant or owner may be established at any time by the submission of proof satisfactory to the Company.

Reallocation of Annuity Units After the Annuity Commencement Date

After the annuity commencement date, you may reallocate the value of a designated number of annuity units of a subaccount then credited to a policy into an equal value of annuity units of one or more other subaccounts or the fixed account. The reallocation shall be based on the relative value of the annuity units of the account(s) or subaccount(s) at the end of the business day on the next payment date. The minimum amount which may be reallocated is the lesser of (1) $10 of monthly income or (2) the entire monthly income of the annuity units in the account or subaccount from which the transfer is being made. If the monthly income of the annuity units remaining in an account or subaccount after a reallocation is less than $10, the Company reserves the right to include the value of those annuity units as part of the transfer. The request must be in writing to the Company’s administrative and service office. There is no charge assessed in connection with such reallocation. A reallocation of annuity units may be made up to four times in any given policy year.

After the annuity commencement date, no transfers may be made from the fixed account to the separate account.

Annuity Payment Options

Note: Portions of the following discussion do not apply to annuity payments under the Initial Payment Guarantee. See the “Stabilized Payments” section of this SAI.

During the lifetime of the annuitant and before the annuity commencement date, the owner may choose an annuity payment option or change the election, but notice of any election or change of election must be received by the Company in good order at its Administrative and Service Office at least thirty (30) days before the annuity commencement date (elections less than 30 days require prior approval). If no election is made before the annuity commencement date, annuity payments will be made under (1) life income with level (fixed) payments for 10 years certain, using the existing policy value of the fixed account, or (2) life income with variable payments for 10 years certain using the existing policy value of the separate account, or (3) a combination of (1) and (2).

The person who elects an annuity payment option can also name one or more successor payees to receive any unpaid amount the Company has at the death of a payee. Naming these payees cancels any prior choice of a successor payee.

A payee who did not elect the annuity payment option does not have the right to advance or assign payments, take the payments in one sum, or make any other change. However, the payee may be given the right to do one or more of these things if the person who elects the option tells the Company in writing and the Company agrees.

7

Variable Payment Options. The dollar amount of the first variable annuity payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the policy. For annuity payments the tables are based on a 5% effective annual Assumed Investment Return and the “2000 Table”, using an assumed annuity commencement date of 2005 (static projection to this point) with dynamic projection using scale G from that point (100% of G for male, 50% of G for females). The dollar amount of additional variable annuity payments will vary based on the investment performance of the subaccount(s) of the separate account selected by the annuitant or beneficiary.

Determination of the First Variable Payment. The amount of the first variable payment depends upon the sex (if consideration of sex is allowed under state law) and adjusted age of the annuitant. For regular annuity payments, the adjusted age is the annuitant’s actual age nearest birthday, on the annuity commencement date, adjusted as described in your policy. This adjustment assumes an increase in life expectancy, and therefore it results in lower payments than without such an adjustment.

Determination of Additional Variable Payments. All variable annuity payments other than the first are calculated using annuity units which are credited to the policy. The number of annuity units to be credited in respect of a particular subaccount is determined by dividing that portion of the first variable annuity payment attributable to that subaccount by the annuity unit value of that subaccount on the annuity commencement date. The number of annuity units of each particular subaccount credited to the policy then remains fixed, assuming no transfers to or from that subaccount occur. The dollar value of variable annuity units in the chosen subaccount will increase or decrease reflecting the investment experience of the chosen subaccount. The dollar amount of each variable annuity payment after the first may increase, decrease or remain constant. This amount is equal to the sum of the amounts determined by multiplying the number of annuity units of each particular subaccount credited to the policy by the annuity unit value for the particular subaccount on the date the payment is made.

Death Benefit

Due proof of death of the annuitant is proof that the annuitant died prior to the commencement of annuity payments. A certified copy of a death certificate, a certified copy of a decree of a court of competent jurisdiction as to the finding of death, a written statement by the attending physician, or any other proof satisfactory to the Company will constitute due proof of death.

Upon receipt in good order (at our Administrative and Service Office) of this proof and an election of a method of settlement and return of the policy, the death benefit generally will be paid within seven days, or as soon thereafter as the Company has sufficient information about the beneficiary(ies) to make the payment. The beneficiary may receive the amount payable in a lump sum cash benefit, or, subject to any limitation under any state or federal law, rule, or regulation, under one of the annuity payment options described above, unless a settlement agreement is effective at the death of the owner preventing such election.

If an owner is not an annuitant, and dies prior to the annuity commencement date, the new owner may surrender the policy at any time for the amount of the policy value. If the new owner is not the deceased owner’s spouse, however, (1) the policy value must be distributed within five years after the date of the deceased owner’s death, or (2) payments under an annuity payment option must begin no later than one year after the deceased owner’s death and must be made for the new owner’s lifetime or for a period certain (so long as any period certain does not exceed the new owner’s life expectancy). If the sole new owner is the deceased owner’s surviving spouse, such spouse may elect to continue the policy as the new owner instead of receiving the death benefit.

8

Beneficiary. The beneficiary designation in the enrollment form will remain in effect until changed. The owner may change the designated beneficiary by sending written notice to the Company. The beneficiary’s consent to such change is not required unless the beneficiary was irrevocably designated or law requires consent. (If an irrevocable beneficiary dies, the owner may then designate a new beneficiary.) The change will take effect as of the date the owner signs the written notice, whether or not the owner is living when the notice is received by the Company. The Company will not be liable for any payment made before the written notice is received. If more than one beneficiary is designated, and the owner fails to specify their interests, they will share equally. If upon the death of the annuitant there is a surviving owner(s), the surviving owner(s) automatically takes the place of any beneficiary designation.

Death of Owner

Federal tax law requires that if any owner (including any joint owner who has become a current owner) dies before the annuity commencement date, then the entire value of the policy must generally be distributed within five years of the date of death of such owner. Certain rules apply where (1) the spouse of the deceased owner is the sole beneficiary, (2) the owner is not a natural person and the primary annuitant dies or is changed, or (3) any owner dies after the annuity commencement date. See “Certain Federal Income Tax Consequences” for more information about these rules. Other rules may apply to qualified policies.

Assignment

During the lifetime of the annuitant you may assign any rights or benefits provided by the policy if your policy is a nonqualified policy. An assignment will not be binding on the Company until a copy has been filed at its administrative and service office. Your rights and benefits and those of the beneficiary are subject to the rights of the assignee. The Company assumes no responsibility for the validity or effect of any assignment. Any claim made under an assignment shall be subject to proof of interest and the extent of the assignment. An assignment may have tax consequences.

Unless you so direct by filing written notice with the Company, no beneficiary may assign any payments under the policy before they are due. To the extent permitted by law, no payments will be subject to the claims of any beneficiary’s creditors.

Ownership under qualified policies is restricted to comply with the Code.

Evidence of Survival

The Company reserves the right to require satisfactory evidence that a person is alive if a payment is based on that person being alive. No payment will be made until the Company receives such evidence.

Non-Participating

The policy will not share in the Company’s surplus earnings; no dividends will be paid.

Amendments

No change in the policy is valid unless made in writing by the Company and approved by one of the Company’s officers. No registered representative has authority to change or waive any provision of the policy.

9

The Company reserves the right to amend the policies to meet the requirements of the Code, regulations or published rulings. You can refuse such a change by giving written notice, but a refusal may result in adverse tax consequences.

Employee and Agent Purchases

The policy may be acquired by an employee or registered representative of any broker/dealer authorized to sell the policy or their immediate family, or by an officer, director, trustee or bona-fide full-time employee of the Company or its affiliated companies or their immediate family. In such a case, the Company in its discretion, may credit an amount equal to a percentage of each premium payment to the policy due to lower acquisition costs the Company experiences on those purchases. The Company may offer certain employer sponsored savings plans, reduced fees and charges including, but not limited to, the annual service charge, the surrender charges, the mortality and expense risk fee and the administrative charge for certain sales under circumstances which may result in savings of certain costs and expenses. In addition, there may be other circumstances of which the Company is not presently aware which could result in reduced sales or distribution expenses. Credits to the policy or reductions in these fees and charges will not be unfairly discriminatory against any owner.

Present Value of Future Variable Payments

The present value of future period certain variable payments is calculated by taking (a) the supportable payment on the business day we receive the surrender request (in good order at our Administrative and Service Office), multiplied by (b) the number of payments remaining, multiplied by a discount rate (such as the assumed investment rate or “AIR”).

Stabilized Payments

If you have selected a payout feature that provides for stabilized payments (e.g., the Initial Payment Guarantee), please note that the stabilized payments remain level throughout each year and are adjusted on your annuitization anniversary. Without stabilized payments, each payment throughout the year would fluctuate based on the performance of your selected subaccounts. To reflect the difference in these payments we adjust (both increase and decrease as appropriate) the number of annuity units. The annuity units are adjusted when we calculate the supportable payment. Supportable payments are used in the calculation of surrender values, death benefits and transfers. On the anniversary of your annuity commencement date we set the new stabilized payment equal to the current supportable payment. In the case of an increase in the number of variable annuity units, your participation in the future investment performance of the subaccounts will be increased because more variable annuity units are credited to you. Conversely, in the case of a reduction of the number of variable annuity units, your participation in the future investment performance of the subaccounts will be decreased because fewer variable annuity units are credited to you. If the Initial Payment Guarantee is chosen, then the stabilized variable annuity payment will equal the greater of the guaranteed payment or the supportable payment at that time.

10

The following table demonstrates, on a purely hypothetical basis, the changes in the number of variable annuity units. The changes in the variable annuity unit values reflect the investment performance of the applicable subaccounts as well as the separate account charge.

Hypothetical Changes in Annuity Units with Stabilized Payments*

Assumed Investment Rate	5.0%
Life & 10 Year Certain
Male aged 65
First Variable Payment	$500

		Beginning Annuity Units		Annuity Unit Values		Monthly Payment Without Stabilization		Monthly Stabilized Payment		Adjustments In Annuity Units			Cumulative Adjusted Annuity Units
At Issue:	January 1		400.0000		1.250000	$	500.00	$	500.00		0.0000			400.0000
	February 1		400.0000		1.252005	$	500.80	$	500.00		0.0041			400.0041
	March 1		400.0000		1.252915	$	501.17	$	500.00		0.0059			400.0100
	April 1		400.0000		1.245595	$	498.24	$	500.00		(0.0089	)		400.0011
	May 1		400.0000		1.244616	$	497.85	$	500.00		(0.0108	)		399.9903
	June 1		400.0000		1.239469	$	495.79	$	500.00		(0.0212	)		399.9691
	July 1		400.0000		1.244217	$	497.69	$	500.00		(0.0115	)		399.9576
	August 1		400.0000		1.237483	$	494.99	$	500.00		(0.0249	)		399.9327
	September 1		400.0000		1.242382	$	496.95	$	500.00		(0.0150	)		399.9177
	October 1		400.0000		1.242382	$	496.95	$	500.00		(0.0149	)		399.9027
	November 1		400.0000		1.249210	$	499.68	$	500.00		(0.0016	)		399.9012
	December 1		400.0000		1.252106	$	500.84	$	500.00		0.0040			399.9052
	January 1		399.9052		1.255106	$	501.92	$	501.92		0.0000			399.9052

* The total separate account expenses and portfolio expenses included in the calculations are 2.25% (2.25% is a hypothetical figure). If higher (or lower) expenses were charged, the numbers would be lower (or higher).

CERTAIN FEDERAL INCOME TAX CONSEQUENCES

The following summary does not constitute tax advice. It is a general discussion of certain of the expected federal income tax consequences of investment in and distributions with respect to a policy, based on the Code, Regulations thereunder, judicial authority, and current administrative rulings and practice. This summary discusses only certain federal income tax consequences to “United States Persons,” and does not discuss federal gift, estate or any other state, local, or foreign tax consequences. United States Persons means citizens or residents of the United States, domestic corporations, domestic partnerships and trusts, or estates that are subject to United States federal income tax regardless of the source of their income.

Tax Status of the Policy

Diversification Requirements. Section 817(h) of the Code provides that in order for a non-qualified variable policy which is based on a segregated asset account to qualify as an annuity policy under the Code, the investments made by

11

such account must be “adequately diversified” in accordance with Treasury Regulations. The Regulations issued under Section 817(h) (Treas. Reg. Section 1.817 -5) apply a diversification requirement to each of the subaccounts. The separate account, through its underlying fund portfolios and their portfolios, intends to comply with the diversification requirements of the Regulations. We have entered into agreements with each underlying fund portfolio company that require the portfolios to be operated in compliance with the Regulations.

Owner Control. In some circumstances, owners of variable policies who retain excessive control over the investment of the underlying separate account assets may be treated as the owners of those assets and may be subject to tax on income produced by those assets. Although there is little guidance in this area and published guidance does not address certain aspects of the policies, we believe that the owner of a policy should not be treated as the owner of the underlying assets. We reserve the right to modify the policies to bring them into conformity with applicable standards should such modification be necessary to prevent owners of the policies from being treated as the owners of the underlying separate account assets.

Distribution Requirements. The Code requires that nonqualified policies contain specific provisions for distribution of policy proceeds upon the death of any owner. In order to be treated as an annuity policy for federal income tax purposes, the Code requires that such policies provide that if any owner dies on or after the annuity commencement date and before the entire interest in the policy has been distributed, the remaining portion must be distributed at least as rapidly as under the method in effect on such owner’s death. If any owner dies before the annuity commencement date, the entire interest in the policy must generally be distributed within 5 years after such owner’s date of death or be used to provide payments to a designated beneficiary beginning within one year of such owner’s death and will be made for the life of the beneficiary or for a period not extending beyond the life expectancy of the beneficiary. However, if upon such owner’s death prior to the annuity commencement date, such owner’s surviving spouse becomes the sole new owner under the policy, then the policy may be continued with the surviving spouse as the new owner. Under the policy, the beneficiary is the person(s) designated by an owner/annuitant and the surviving joint owner is the beneficiary of an owner who is not the annuitant. If any owner is not a natural person, then for purposes of these distribution requirements, the primary annuitant shall be treated as an owner and any death or change of such primary annuitant shall be treated as the death of an owner. The nonqualified policies contain provisions intended to comply with these requirements of the Code. No regulations interpreting these requirements of the Code have yet been issued and thus no assurance can be given that the provisions contained in the policies satisfy all such Code requirements. The provisions contained in the policies will be reviewed and modified if necessary to assure that they comply with the Code requirements when clarified by regulation or otherwise.

The Federal Defense of Marriage Act currently does not recognize same-sex marriages or civil unions, even those that are permitted under individual state laws. Therefore, exercise of the spousal continuation provisions of this policy by persons who do not meet the definition of “spouse” under federal law—e.g., civil union partners and same-sex marriage spouses—may have adverse tax consequences. Consult a tax advisor for more information on this subject.

The following discussion is based on the assumption that the policy qualifies as an annuity policy for federal income tax purposes.

Taxation of Annuities

In General. Code Section 72 governs taxation of annuities in general. We believe that an owner who is an individual will not be taxed on increases in the value of a policy until such amounts are surrendered or distributed. For this purpose, the assignment, pledge, or agreement to assign or pledge any portion of the policy value, and in the case of a qualified policy,

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any portion of an interest in the plan, generally will be treated as a distribution. The taxable portion of a distribution is taxable as ordinary income.

Non-Natural Persons. Pursuant to Section 72(u) of the Code, a nonqualified policy held by a taxpayer other than a natural person generally will not be treated as an annuity policy under the Code; accordingly, an owner who is not a natural person will recognize as ordinary income for a taxable year the excess, if any, of the policy value over the “investment in the contract”. There are some exceptions to this rule and a prospective purchaser of the policy that is not a natural person should discuss these with a competent tax adviser.

Withholding. The portion of any distribution under a policy that is includable in gross income will be subject to federal income tax withholding unless the recipient of such distribution elects not to have federal income tax withheld. Election forms will be provided at the time distributions are requested or made. For certain qualified policies, the withholding rate varies according to the type of distribution and the owner’s tax status. For qualified policies taxable, “eligible rollover distributions” from Section 401(a) plans, Section 403(a) annuities, Section 403(b) tax-sheltered annuities, and governmental 457 plans are subject to a mandatory federal income tax withholding of 20%. An eligible rollover distribution is any distribution from such a plan, other than specified distributions such as distributions required by the Code, distributions in a specified annuity form or hardship distributions. The 20% withholding does not apply, however, to nontaxable distributions or if (i) the employee (or employee’s spouse or former spouse as beneficiary or alternate payee) chooses a “direct rollover” from the plan to a tax-qualified plan, IRA, Roth IRA or tax sheltered annuity or to a governmental 457 plan that agrees to separately account for rollover contributions; or (ii) a non-spouse beneficiary chooses a “direct rollover” from the plan to an IRA established by the direct rollover.

Incidental Death Benefits. The policy may include optional death benefit features, the value of which may exceed the value of the policy or premium payments made under the policy. Federal tax laws limit the value of such incidental death benefit in tax-qualified pension, profit-sharing and 403(b) plans. Further, the Internal Revenue Service has not reviewed this policy for qualification as an IRA, and has not addressed in a ruling of general applicability whether any death benefits available under the policy comport with qualification requirements. The actuarial present value of death benefit options and riders elected may need to be considered in calculating minimum required distributions. Consult a qualified tax adviser before purchasing an optional death benefit.

Qualified Policies. The qualified policy is designed for use with several types of tax-qualified retirement plans. The tax rules applicable to participants and beneficiaries in tax-qualified retirement plans vary according to the type of plan and the terms and conditions of the plan. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from contributions in excess of specified limits, distributions prior to age 59 ¹/2 (subject to certain exceptions), distributions that do not conform to specified commencement and minimum distribution rules, and in other specified circumstances. Some retirement plans are subject to distribution and other requirements that are not incorporated into the policies or our policy administration procedures. Owners, participants, and beneficiaries are responsible for determining that contributions, distributions, and other transactions with respect to the policies comply with applicable law.

For qualified plans under Section 401(a), 403(a), 403(b), and 457, the Code requires that distributions generally must commence no later than the later of April 1 of the calendar year following the calendar year in which the owner (or plan participant) (i) reaches age 70 ¹/2 or (ii) retires, and must be made in a specified form or manner. If a participant in a Section 401(a) plan is a “5 percent owner” (as defined in the Code), or in the case of an IRA (other than a Roth IRA), distributions generally must begin no later than April 1 of the calendar year in which the owner (or plan participant) reaches age 70 ¹/2. Each owner is responsible for requesting distributions under the policy that satisfy applicable tax rules.

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We do not attempt to provide more than general information about use of the policy with the various types of retirement plans. Purchasers of policies for use with any retirement plan should consult their legal counsel and tax adviser regarding the suitability of the policy.

Traditional Individual Retirement Annuities. In order to qualify as a traditional individual retirement annuity under Section 408(b) of the Code, a policy must satisfy certain conditions: (i) the owner must be the annuitant; (ii) the policy generally is not transferable by the owner, e.g., the owner may not designate a new owner, designate a contingent owner or assign the policy as collateral security; (iii) subject to special rules, the total premium payments for any calendar year may not exceed the amount specified in the Code ($5,000 for 2011, $6,000 if age 50 or older), except in the case of a rollover amount or contribution under Section 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) or 457(e)(16) of the Code; (iv) annuity payments or partial surrenders must begin no later than April 1 of the calendar year following the calendar year in which the annuitant attains age 70 ¹/2; (v) an annuity payment option with a period certain that will guarantee annuity payments beyond the life expectancy of the annuitant and the beneficiary may not be selected; (vi) certain payments of death benefits must be made in the event the annuitant dies prior to the distribution of the policy value; (vii) the entire interest of the owner is non-forfeitable; and (viii) the premiums must not be fixed. Policies intended to qualify as traditional individual retirement annuities under Section 408(b) of the Code contain such provisions. Amounts in the IRA (other than nondeductible contributions) are taxed when distributed from the IRA. Distributions prior to age 59 ¹/2 (unless certain exceptions apply) are subject to a 10% penalty tax.

Roth Individual Retirement Annuities (Roth IRA). The Roth IRA, under Section 408A of the Code, contains many of the same provisions as a traditional IRA. However, there are some differences. First, the contributions are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A rollover from or conversion of an IRA to a Roth IRA may be subject to tax. The Roth IRA is available to individuals with earned income and whose modified adjusted gross income is under $120,000 for single filers, $176,000 for married filing jointly, and $10,000 for married filing separately. Subject to special rules, the amount per individual that may be contributed to all IRAs (Roth and traditional) is the deductible amount specified in the Code ($5,000 for 2011, $6,000 if age 50 or older). Secondly, the distributions are taxed differently. The Roth IRA offers tax-free distributions when made 5 tax years after the first contribution to any Roth IRA of the individual and made after attaining age 59 ¹/2, to pay for qualified first time homebuyer expenses (lifetime maximum of $10,000), or due to death or disability. All other distributions are subject to income tax when made from earnings and may be subject to a penalty tax unless an exception applies. Unlike the traditional IRA, there are no minimum required distributions during the owner’s lifetime; however, required distributions at death are generally the same as for traditional IRAs.

Section 403(b) Plans. Under Section 403(b) of the Code, payments made by public school systems and certain tax exempt organizations to purchase policies for their employees are generally excludable from the gross income of the employee, subject to certain limitations. However, such payments may be subject to FICA (Social Security) taxes. The policy includes a death benefit that in some cases may exceed the greater of the premium payments or the policy value. The death benefit could be characterized as an incidental benefit, the amount of which is limited in any tax-sheltered annuity under Section 403(b). Therefore, employers using the policy in connection with such plans should consult their tax adviser. Additionally, in accordance with the requirements of the Code, Section 403(b) annuities generally may not permit distribution of (i) elective contributions made in years beginning after December 31, 1988, and (ii) earnings on those contributions, and (iii) earnings on amounts attributed to elective contributions held as of the end of the last year beginning before January 1, 1989. Distributions of such amounts will be allowed only upon the death of the employee, on or after attainment of age 59 ¹/2, severance from employment, disability, or financial hardship, except that income attributable to elective contributions may not be distributed in the case of hardship. These rules may prevent the payment of guaranteed withdrawals under a guaranteed lifetime withdrawal benefit prior to age 59 ¹/2.

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For policies issued after 2008, amounts attributable to nonelective contributions may be subject to distribution restrictions specified in the employer’s section 403(b) plan.

Pursuant to new tax regulations, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders you request from a 403(b) policy comply with applicable tax requirements before we process your request. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender or transfer, you consent to the sharing of confidential information about you, the policy, and transactions under the policy and any other 403(b) policies or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.

Corporate Pension and Profit-Sharing Plans and H.R. 10 Plans. Sections 401(a) and 403(a) of the Code permit corporate employers to establish various types of retirement plans for employees and self-employed individuals to establish qualified plans for themselves and their employees. Such retirement plans may permit the purchase of the policies to accumulate retirement savings. Adverse tax consequences to the plan, the participant or both may result if the policy is assigned or transferred to any individual as a means to provide benefit payments.

Deferred Compensation Plans. Section 457 of the Code, while not actually providing for a qualified plan as that term is normally used, provides for certain deferred compensation plans with respect to service for state governments, local governments, political subdivisions, agencies, instrumentalities, and certain affiliates of such entities, and tax exempt organizations. The policies can be used with such plans. Under such plans a participant may specify the form of investment in which his or her participation will be made. For non-governmental Section 457 plans, all such investments, however, are owned by, and are subject to, the claims of the general creditors of the sponsoring employer. Depending on the terms of the particular plan, a non-government employer may be entitled to draw on deferred amounts for purposes unrelated to its Section 457 plan obligations. In general, all amounts received under a nongovernmental Section 457 plan are taxable and are subject to federal income tax withholding as wages.

Taxation of the Company

The Company at present is taxed as a life insurance company under part I of Subchapter L of the Code. The separate account is treated as part of the Company and, accordingly, will not be taxed separately as a “regulated investment company” under Subchapter M of the Code. We do not expect to incur any federal income tax liability with respect to investment income and net capital gains arising from the activities of the separate account retained as part of the reserves under the policy. Based on this expectation, it is anticipated that no charges will be made against the separate account for federal income taxes. If, in future years, any federal income taxes are incurred by us with respect to the separate account, we may make a charge to that account.

INVESTMENT EXPERIENCE

A “net investment factor” is used to determine the value of accumulation units and annuity units, and to determine annuity payment rates.

Accumulation Units

Allocations of a premium payment directed to a subaccount are credited in the form of accumulation units. Each subaccount has a distinct accumulation unit value. The number of units credited is determined by dividing the premium

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payment or amount transferred to the subaccount by the accumulation unit value of the subaccount as of the end of the valuation period during which the allocation is made. For each subaccount, the accumulation unit value for a given business day is based on the net asset value of a share of the corresponding portfolio of the underlying fund portfolios less any applicable charges or fees. The investment performance of the portfolio, expenses, and deductions of certain charges affect the value of an accumulation unit.

Upon allocation to the selected subaccount, premium payments are converted into accumulation units of the subaccount. The number of accumulation units to be credited is determined by dividing the dollar amount allocated to each subaccount by the value of an accumulation unit for that subaccount as next determined after the premium payment is received at the administrative and service office or, in the case of the initial premium payment, when the enrollment form is completed, whichever is later. The value of an accumulation unit for each subaccount was arbitrarily established at $1 at the inception of each subaccount. Thereafter, the value of an accumulation unit is determined as of the close of trading on each day the New York Stock Exchange is open for regular trading.

An index (the “net investment factor”) which measures the investment performance of a subaccount during a valuation period, is used to determine the value of an accumulation unit for the next subsequent valuation period. The net investment factor may be greater or less than or equal to one; therefore, the value of an accumulation unit may increase, decrease, or remain the same from one valuation period to the next. You bear this investment risk. The net investment performance of a subaccount and deduction of certain charges affect the accumulation unit value.

The net investment factor for any subaccount for any valuation period is determined by dividing (a) by (b) and subtracting (c) from the result, where:

(a) is the net result of:

(1) the net asset value per share of the shares held in the subaccount determined at the end of the current valuation period, plus

(2) the per share amount of any dividend or capital gain distribution made with respect to the shares held in the subaccount if the ex-dividend date occurs during the current valuation period, plus or minus

(3) a per share credit or charge for any taxes determined by the Company to have resulted during the valuation period from the investment operations of the subaccount;

(b) is the net asset value per share of the shares held in the subaccount determined as of the end of the immediately preceding valuation period; and

(c) is an amount representing the separate account charge and any optional benefit fees, if applicable.

Illustration of Separate Account Accumulation Unit Value Calculations

Formula and Illustration for Determining the Net Investment Factor

Net Investment Factor =	(A + B - C)	- E
	D

Where:

A =	The net asset value of an underlying fund portfolio share as of the end of the current valuation period.
	Assume	A = $11.57

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B =	The per share amount of any dividend or capital gains distribution since the end of the immediately preceding valuation period.
	Assume	B = 0
C =	The per share charge or credit for any taxes reserved for at the end of the current valuation period.
	Assume	C = 0
D =	The net asset value of an underlying fund portfolio share at the end of the immediately preceding
	valuation period.
	Assume	D = $11.40
E =	The daily deduction for the mortality and expense risk fee and the administrative charge, and any optional benefit fees, if applicable. Assume E totals 2.35% on an annual basis; On a daily basis, this equals 0.000063641.

Then, the net investment factor =	(11.57 + 0 - 0)	- 0.000063641 = Z = 1.01484864
	(11.40)

Formula and Illustration for Determining Accumulation Unit Value

Accumulation Unit Value = A * B

Where:

A =	The accumulation unit value for the immediately preceding valuation period.
	Assume = $X
B =	The net investment factor for the current valuation period.
	Assume = Y

Then, the accumulation unit value = $X * Y = $Z

Annuity Unit Value and Annuity Payment Rates

The amount of variable annuity payments will vary with annuity unit values. Annuity unit values rise if the net investment performance of the subaccount exceeds the assumed investment return of 5% annually. Conversely, annuity unit values fall if the net investment performance of the subaccount is less than the annual assumed investment return. The value of a variable annuity unit in each subaccount was established at $1 on the date operations began for that subaccount. The value of a variable annuity unit on any subsequent business day is equal to (a) multiplied by (b) multiplied by (c), where:

(a) is the variable annuity unit value for the subaccount on the immediately preceding business day;

(b) is the net investment factor for that subaccount for the valuation period; and

(c) is the assumed investment return adjustment factor for the valuation period.

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The assumed investment return adjustment factor for the valuation period is the product of discount factors of .99986634 per day to recognize the 5% effective annual assumed investment return. The valuation period is the period from the close of the immediately preceding business day to the close of the current business day.

The net investment factor for the policy used to calculate the value of a variable annuity unit in each subaccount for the valuation period is determined by dividing (i) by (ii) and subtracting (iii) from the result, where:

(i) is the result of:

(1) the net asset value of a fund share held in that subaccount determined at the end of the current valuation period; plus

(2) the per share amount of any dividend or capital gain distributions made by the fund for shares held in that subaccount if the ex-dividend date occurs during the valuation period; plus or minus

(3) a per share charge or credit for any taxes reserved for, which the Company determines to have resulted from the investment operations of the subaccount.

(ii) is the net asset value of a fund share held in that subaccount determined as of the end of the immediately preceding valuation period.

(iii) is a factor representing the mortality and expense risk fee and administrative charge. This factor is equal, on an annual basis, to 1.25% of the daily net asset value of shares held in that subaccount (For calculating Initial Payment Guarantee annuity payments, the factor is higher at a rate of 2.50%).

The dollar amount of subsequent variable annuity payments will depend upon changes in applicable annuity unit values.

The annuity payment rates generally vary according to the annuity option elected and the gender and adjusted age of the annuitant at the annuity commencement date. The policy contains a table for determining the adjusted age of the annuitant.

Illustration of Calculations for Annuity Unit

Value and Variable Annuity Payments

Formula and Illustration for Determining Annuity Unit Value

Annuity Unit Value = A * B * C

Where:

A =	annuity unit value for the immediately preceding valuation period.
	Assume = $X
B =	Net investment factor for the valuation period for which the annuity unit value is being calculated.
	Assume = Y
C =	A factor to neutralize the annual assumed investment return of 5% built into the Annuity Tables used.
	Assume = Z

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Then, the annuity unit value is:

$X * Y * Z = $Q

Formula and Illustration for Determining Amount of

First Monthly Variable Annuity Payment

First monthly variable annuity payment =	A * B
	$1,000

Where:

A =	The adjusted policy value as of the annuity commencement date.
	Assume = $X
B =	The annuity purchase rate per $1,000 of adjusted policy value based upon the option selected, the sex and adjusted age of the annuitant according to the tables contained in the policy.
	Assume = $Y

Then, the first monthly variable annuity payment =	$X * $Y	= $Z
	1,000

Formula and Illustration for Determining the Number of Annuity Units

Represented by Each Monthly Variable Annuity Payment

Number of annuity units =	A
	B

Where:
A =	The dollar amount of the first monthly variable annuity payment.
	Assume = $X
B =	The annuity unit value for the valuation date on which the first monthly payment is due.
	Assume = $Y

Then, the number of annuity units =	$X	= Z
	$Y

HISTORICAL PERFORMANCE DATA

Money Market Yields

The Company may from time to time disclose the current annualized yield of the money market subaccount, which invests in the corresponding money market portfolio, for a 7-day period in a manner which does not take into

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consideration any realized or unrealized gains or losses on shares of the corresponding money market portfolio or on its portfolio securities. This current annualized yield is computed by determining the net change (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) at the end of the 7-day period in the value of a hypothetical account having a balance of 1 unit of the money market subaccount at the beginning of the 7-day period, dividing such net change in account value by the value of the account at the beginning of the period to determine the base period return, and annualizing this quotient on a 365-day basis. The net change in account value reflects (i) net income from the portfolio attributable to the hypothetical account; and (ii) charges and deductions imposed under a policy that are attributable to the hypothetical account. The charges and deductions include the per unit charges for the hypothetical account for (i) the administrative charges and (ii) the mortality and expense risk fee. Current yield will be calculated according to the following formula:

Current Yield = ((NCS * ES)/UV) * (365/7)

Where:

NCS	=	The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of 1 subaccount unit.
ES	=	Per unit expenses of the subaccount for the 7-day period.
UV	=	The unit value on the first day of the 7-day period.

Because of the charges and deductions imposed under a policy, the yield for the money market subaccount will be lower than the yield for the corresponding money market portfolio. The yield calculations do not reflect the effect of any premium taxes.

The Company may also disclose the effective yield of the money market subaccount for the same 7-day period, determined on a compounded basis. The effective yield is calculated by compounding the base period return according to the following formula:

Effective Yield = (1 + ((NCS - ES)/UV))^365/7 - 1

Where:

NCS	=	The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of 1 subaccount unit.
ES	=	Per unit expenses of the subaccount for the 7-day period.
UV	=	The unit value on the first day of the 7-day period.

The yield on amounts held in the money market subaccount normally will fluctuate on a daily basis. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. The money market subaccount’s actual yield is affected by changes in interest rates on money market securities, average portfolio maturity of the corresponding money market portfolio, the types and quality of portfolio securities held by the corresponding money market portfolio and its operating expenses.

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Total Returns

The Company may from time to time also advertise or disclose total returns for one or more of the subaccounts for various periods of time. One of the periods of time will include the period measured from the date the subaccount commenced operations. When a subaccount has been in operation for 1, 5 and 10 years, respectively, the total return for these periods will be provided. Total returns for other periods of time may from time to time also be disclosed. Total returns represent the average annual compounded rates of return that would equate an initial investment of $1,000 to the redemption value of that investment as of the last day of each of the periods. The ending date for each period for which total return quotations are provided will be for the most recent month end practicable, considering the type and media of the communication and will be stated in the communication.

Total returns will be calculated using subaccount unit values which the Company calculates on each business day based on the performance of the separate account’s underlying fund portfolio and the deductions for the mortality and expense risk fee and the administrative charges. The total return will then be calculated according to the following formula:

P (1 + T)^N = ERV

Where:

T	=	The average annual total return net of subaccount recurring charges.
ERV	=	The ending redeemable value of the hypothetical account at the end of the period.
P	=	A hypothetical initial payment of $1,000.
N	=	The number of years in the period.

Other Performance Data

The Company may from time to time also disclose average annual total returns in a non-standard format in conjunction with the standard format described above. The non-standard format will be identical to the standard format.

The Company may from time to time also disclose cumulative total returns in conjunction with the standard format described above. The cumulative returns will be calculated using the following formula:

CTR = (ERV / P)-1

Where:

CTR	=	The cumulative total return net of subaccount recurring charges for the period.
ERV	=	The ending redeemable value of the hypothetical investment at the end of the period.
P	=	A hypothetical initial payment of $1,000.

All non-standard performance data will only be advertised if the standard performance data is also disclosed.

Adjusted Historical Performance Data

From time to time, sales literature or advertisements may quote average annual total returns for periods prior to the date a particular subaccount commenced operations. Such performance information for the subaccounts will be calculated

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based on the performance of the various portfolios and the assumption that the subaccounts were in existence for the same periods as those indicated for the portfolios, with the level of policy charges that are currently in effect.

PUBLISHED RATINGS

The Company may from time to time publish in advertisements, sales literature and reports to owners, the ratings and other information assigned to it by one or more independent rating organizations such as A.M. Best Company, Standard & Poor’s Insurance Ratings Services, Moody’s Investors Service and Fitch Financial Ratings. The purpose of the ratings is to reflect the financial strength of the Company. The ratings should not be considered as bearing on the investment performance of assets held in the separate account or of the safety or riskiness of an investment in the separate account. Each year the A.M. Best Company reviews the financial status of thousands of insurers, culminating in the assignment of Best’s Ratings. These ratings reflect their current opinion of the relative financial strength and operating performance of an insurance company in comparison to the norms of the life/health insurance industry. In addition, these ratings may be referred to in advertisements or sales literature or in reports to owners. These ratings are opinions of an operating insurance company’s financial capacity to meet the obligations of its insurance policies in accordance with their terms.

STATE REGULATION OF TRANSAMERICA LIFE INSURANCE COMPANY

The Company is subject to the laws of Iowa governing insurance companies and to regulation by the Iowa Department of Insurance. An annual statement in a prescribed form is filed with the Department of Insurance each year covering the operation of the Company for the preceding year and its financial condition as of the end of such year. Regulation by the Department of Insurance includes periodic examination to determine the Company’s contract liabilities and reserves so that the Department may determine the items are correct. The Company’s books and accounts are subject to review by the Department of Insurance at all times, and a full examination of its operations is conducted periodically by the National Association of Insurance Commissioners. In addition, the Company is subject to regulation under the insurance laws of other jurisdictions in which it may operate.

ADMINISTRATION

The Company performs administrative services for the policies. These services include issuance of the policies, maintenance of records concerning the policies, and certain valuation services.

RECORDS AND REPORTS

All records and accounts relating to the separate account will be maintained by the Company. As presently required by the 1940 Act, as amended, and regulations promulgated thereunder, the Company will mail to all owners at their last known address of record, at least annually, reports containing such information as may be required under that Act or by any other applicable law or regulation. Owners will also receive confirmation of each financial transaction and any other reports required by law or regulation. However, for certain routine transactions (for example, regular monthly premiums deducted from your checking account, or regular annuity payments the Company sends to you) you may only receive quarterly confirmations.

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DISTRIBUTION OF THE POLICIES

We have entered into a principal underwriting agreement with our affiliate, Transamerica Capital, Inc. (“TCI”), for the distribution and sale of the policies. We may 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.)

TCI’s home office is located at 4600 S Syracuse St. Suite 1100 Denver, Colorado 80237-2719. TCI 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 Financial Industry Regulatory Authority (“FINRA”). TCI is not a member of the Securities Investor Protection Corporation.

We currently offer the policies on a continuous basis. We anticipate continuing to offer the policies, but reserve the right to discontinue the offering. The policies are offered to the public through sales representatives of broker-dealers (“selling firms”) that have entered into selling agreements with us and with TCI. TCI compensates these selling firms for their services. Sales representatives with these selling firms are appointed as our insurance agents.

We and our affiliates provide paid-in capital to TCI and pay for TCI’s operating and other expenses, including overhead, legal and accounting fees. We also pay TCI an “override” payment based on the pricing of the product which becomes part of TCI’s assets. In addition, we pay commission to TCI for policy sales; these commissions are passed through to the selling firms with TCI not retaining any portion of the commissions. During fiscal year 2010, 2009 and 2008 the amounts paid to TCI in connection with all policies sold through the separate account were $9,529,339, $10,063,056, and $9,040,026, respectively.

We and/or TCI or another affiliate 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 of the selling firms. We and/or TCI may make bonus payments to certain selling firms based on aggregate sales or persistency standards. These additional payments are not offered to all selling firms, and the terms of any particular agreement governing the payments may vary among selling firms.

VOTING RIGHTS

To the extent required by law, the Company will vote the underlying fund portfolios’ shares held by the separate account at regular and special shareholder meetings of the underlying fund portfolios in accordance with instructions received from persons having voting interests in the portfolios, although none of the underlying fund portfolios hold regular annual shareholder meetings. If, however, the 1940 Act or any regulation thereunder should be amended or if the present interpretation thereof should change, and as a result the Company determines that it is permitted to vote the underlying fund portfolios shares in its own right, it may elect to do so.

Before the annuity commencement date, you hold the voting interest in the selected portfolios. The number of votes that you have the right to instruct will be calculated separately for each subaccount. The number of votes that you have the right to instruct for a particular subaccount will be determined by dividing your policy value in the subaccount by the net asset value per share of the corresponding portfolio in which the subaccount invests. Fractional shares will be counted.

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After the annuity commencement date, the person receiving annuity payments has the voting interest, and the number of votes decreases as annuity payments are made and as the reserves for the policy decrease. The person’s number of votes will be determined by dividing the reserve for the policy allocated to the applicable subaccount by the net asset value per share of the corresponding portfolio. Fractional shares will be counted.

The number of votes that you or the person receiving income payments has the right to instruct will be determined as of the date established by the underlying fund portfolio for determining shareholders eligible to vote at the meeting of the underlying fund portfolio. The Company will solicit voting instructions by sending you, or other persons entitled to vote, requests for instructions prior to that meeting in accordance with procedures established by the underlying fund portfolio. Portfolio shares as to which no timely instructions are received, and shares held by the Company in which you, or other persons entitled to vote have no beneficial interest, will be voted in proportion to the voting instructions that are received with respect to all policies participating in the same subaccount.

Each person having a voting interest in a subaccount will receive proxy material, reports, and other materials relating to the appropriate portfolio.

OTHER PRODUCTS

The Company makes other variable annuity policies available that may also be funded through the separate account. These variable annuity policies may have different features, such as different investment choices or charges.

CUSTODY OF ASSETS

The Company holds assets of each of the subaccounts. The assets of each of the subaccounts are segregated and held separate and apart from the assets of the other subaccounts and from the Company’s general account assets. The Company maintains records of all purchases and redemptions of shares of the underlying fund portfolios held by each of the subaccounts. Additional protection for the assets of the separate account is afforded by the Company’s fidelity bond, presently in the amount of $5,000,000, covering the acts of officers and employees of the Company.

LEGAL MATTERS

Sutherland Asbill & Brennan LLP, of Washington D.C. has provided legal advice to the Company regarding to certain matters under the federal securities laws that relate to the policies.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The financial statements of the Separate Account VA B, at December 31, 2010 and for the periods disclosed in the financial statements, and the statutory-basis financial statements and schedules of Transamerica Life Insurance Company at December 31, 2010 and 2009 and for each of the three years in the period ended December 31, 2010, appearing herein, have been audited by Ernst & Young LLP, Suite 3000, 801 Grand Avenue, 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 their reports given on their authority as experts in accounting and auditing.

24

OTHER INFORMATION

A registration statement has been filed with the SEC, under the Securities Act of 1933 as amended, with respect to the policies discussed in this SAI. Not all of the information set forth in the registration statement and the amendments and exhibits thereto has been included in the prospectus or this SAI. Statements contained in the prospectus and this SAI concerning the content of the policies and other legal instruments are intended to be summaries. For a complete statement of the terms of these documents, reference should be made to the instruments filed with the SEC.

FINANCIAL STATEMENTS

The values of your interest in the separate account will be affected solely by the investment results of the selected subaccount(s). Financial statements of certain subaccounts of Separate Account VA B, which are available for investment by MEMBERS^® Freedom^SM Variable Annuity policy owners, are contained herein. The statutory-basis financial statements and schedules of Transamerica Life Insurance Company, which are included in this SAI, should be considered only as bearing on the ability of the Company to meet its obligations under the policies. They should not be considered as bearing on the investment performance of the assets held in the separate account.

25

APPENDIX

OA METHOD TRANSFERS

To make the Retirement Income Choice 1.2 Benefit available, we monitor your policy value and guarantees under the rider daily and periodically transfer amounts between your selected investment options and the OA Subaccount. We determine the amount and timing of OA Method transfers between the investment options and the OA Subaccount according to a mathematical model.

The mathematical model is designed to calculate how much of your policy value should be allocated to the OA Subaccount. Based on this calculation, transfers into or out of the OA Subaccount will occur (subject to the previously disclosed thresholds). The formula is:

Percent of Policy Value required in OA Subaccount (or X) = e^{-Dividend*Time} *(1- NormDist(d1))

where:

e	=	Base of the Natural Logarithm
NormDist	=	Cumulative Standard Normal Distribution
d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

In order to calculate the percent of policy value required in the OA Subaccount, we must first calculate d1:

d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

where:

ln	=	Natural Logarithm Function
G	=	Guarantee Ratio
R	=	Rate
F	=	Fees
V	=	Volatility
T	=	Time

After calculating d1, the percent of policy value required in the OA Subaccount can be calculated. Once calculated, appropriate transfers into or out of the OA Subaccount will occur (subject to the thresholds).

Following is a brief discussion of the values used in the formula.

The POLICY VALUE includes the value in both the investment options and in the OA Subaccount.

The GUARANTEE RATIO is the policy value divided by the greater of (1) premiums minus any adjusted partial withdrawals or (2) present value of rider withdrawal amount (the present value of the rider amount looks at the sum of the expected lifetime payments discounted using a factor of [5.5]) .

26

OA METHOD TRANSFERS — (Continued)

The RATE is the interest rate used for the OA Method. It is based on a long-term expectation based on historical interest rates and may vary over time.

The FEES is an approximation of average policy fees and charges associated with policies that have elected the RIC 1.2 rider. This value may change over time.

The VOLATILITY represents the volatility of the returns of policy value for all in force policies and is based on the long-term expectation of the degree to which the policy values tend to fluctuate. This value may vary over time.

The TIME is an approximation based on actuarial calculations of historical average number of years (including any fraction) which we anticipate remain until any potential payments are made under the benefit. This value may vary over time.

The PERCENT OF POLICY VALUE TO BE ALLOCATED TO THE OA SUBACCOUNT is computed for each policy. Ultimately the allocation for a policy takes into account the guarantees under the rider and the limit on allocations to the OA Subaccount.

The CUMULATIVE STANDARD NORMAL DISTRIBUTION function assumes that random events are distributed according to the classic bell curve. For a given value it computes the percentage of such events which can be expected to be less than that value.

The NATURAL LOGARITHM function for a given value, computes the power to which e must be raised, in order to result in that value. Here, e is the base of the natural logarithms, or approximately 2.718282.

Example:

Day 1: Policy Value Declines by 10%

For purposes of this example we will assume that the policy value declines by 10% to $90,000, the day after the rider issue date from the initial premium amount of $100,000 producing a guarantee ratio of 90% ($90,000/$100,000) invoking an OA transfer. We will also assume:

Guarantee Ratio	=	90%
Rate	=	4.5%
Volatility	=	10%
Fees	=	3%
Time	=	20
Percentage of policy value in fixed account	=	15%
Maximum percentage of policy value in OA Subaccount at time of transfer	=	20%

First we calculate d1.

d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1	=	[ln(.90)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]
d1	=	.658832

27

OA METHOD TRANSFERS — (Continued)

Using the value we just calculated for d1, we can now calculate the percent of policy value required in the OA Subaccount.

Percent of Policy Value desired in OA Subaccount (or DOA) = min(MAX2OA%, e^{-Dividend*Time} *(1-NormDist(d1)))

DOA	=	min(.20, (2.718282 ^ -.03 * 20) * (1 – NormDist(.658832)))
DOA	=	min(20%, 13.9948%)
DOA	=	13.9948%

This percentage gets adjusted if either there is money already in the OA Subaccount or if there is money in the fixed account. When the GR% crosses the lower threshold as in this situation, the ultimate OA transfer percentage is calculated as follows:

X	=	max (0, DOA - (OA% = FA% / 3)
X	=	max (0, 13.9948% - (0% = 15% / 3)
X	=	max (0, 13,9948% - 5%)
X	=	8.9948%

Therefore, 8.9948% of the policy value is transferred to the OA Subaccount, resulting in a total transfer of $8,095.32.

Day 2: Policy Value Recovers to 95% of Initial Value after the 10% Decline

For purposes of this example we will assume that after the policy value declined to $90,000, it recovered the next day to $95,000 producing a guarantee ratio of 95% ($95,000/$100,000) and invoking an OA transfer. We will also assume:

Guarantee Ratio	=	95%
Rate	=	4.5%
Volatility	=	10%
Fees	=	3%
Time	=	20
Percentage of policy value in fixed account	=	14%
Maximum percentage of policy value in OA Subaccount at time of transfer	=	20%
Percentage of policy value in OA Subaccount	=	8%

First we calculate d1.

d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1	=	[ln(.95)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]
d1	=	.779732

Using the value we just calculated for d1, we can now calculate the percent of policy value required in the OA Subaccount.

28

OA METHOD TRANSFERS — (Continued)

Percent of Policy Value desired in OA Subaccount (or DOA) = min(MAX2OA%, e^{-Dividend*Time} *(1 - NormDist(d1)))

DOA	=	min(.20, (2.718282 ^ -.03 * 20) * (1 – NormDist(.779732)))
DOA	=	min(20%, 11.9517%)
DOA	=	11.9517%

This percentage gets adjusted if either there is money already in the OA Subaccount or if there is money in the fixed account. When the GR% crosses the upper threshold as in this situation, the ultimate OA transfer percentage is calculated as follows:

X	=	min (OA%, max(0, OA% = FA% / 3 - DOA%))
X	=	min(8%, max(0, 8% + 14% / 3 - 11.9517%))
X	=	min(8%, max(0, 0.714967%))
X	=	0.714967%

Therefore, due to the policy value recovery, 0.714967% of the policy value will be transferred out of the OA Subaccount pro rata back into their current investment options, resulting in a total transfer of $679.22.

Day 3: Policy Value further recovers to 105% of Initial Value

For purposes of this example we will assume that after the policy value recovered to $95,000, it further recovered the next day to $105,000 producing a guarantee ratio of 105% ($105,000/$100,000) and invoking an OA transfer. We will also assume:

Guarantee Ratio	=	105%
Rate	=	4.5%
Volatility	=	10%
Fees	=	3%
Time	=	20
Percentage of policy value in fixed account	=	13%
Maximum percentage of policy value in OA Subaccount at time of transfer	=	20%
Percentage of policy value in OA Subaccount	=	6%

First we calculate d1.

d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1	=	[ln(1.05)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]
d1	=	1.003524

Using the value we just calculated for d1, we can now calculate the percent of policy value required in the OA Subaccount.

Percent of Policy Value desired in OA Subaccount (or DOA) = min(MAX2OA%, e^{-Dividend*Time} *(1 - NormDist(d1)))

29

OA METHOD TRANSFERS — (Continued)

DOA	=	min(.20, (2.718282 ^ -.03 * 20) * (1 – NormDist(1.003524)))
DOA	=	min(20%, 8.6605%)
DOA	=	8.6605%

This percentage gets adjusted if either there is money already in the OA Subaccount or if there is money in the fixed account. When the GR% crosses the upper threshold as in this situation, the ultimate OA transfer percentage is calculated as follows:

X	=	min (OA%, max(0, OA% = FA% / 3 - DOA%))
X	=	min(6%, max(0, 6% + 13% / 3 - 8.6605%))
X	=	min(6%, max(0, 1.67283%))
X	=	1.67283%>

While the mathematical model would suggest we transfer only a portion of the policy value in the OA Subaccount into your investment options (leaving 4.32717% (6% - 1.67283%) in the OA Subaccount), all of the policy value in the OA Subaccount will be transferred into your investment options. If the Guarantee Ratio equals or exceeds 100%, then your policy value is greater than or equal to the value of the guarantee and there is no current need for any policy value to be allocated to the OA Subaccount.

30

APPENDIX

PAM METHOD TRANSFERS

To make the Living Benefits Rider available, we monitor your policy value and guarantees under the rider daily and periodically transfer amounts between your selected investment options and the PAM Subaccount. We determine the amount and timing of PAM Method transfers between the investment options and the PAM Subaccount according to a mathematical model.

The mathematical model is designed to calculate how much of your policy value should be allocated to the PAM Subaccount. Based on this calculation, transfers into or out of the PAM Subaccount will occur. The formula is:

Percent of Policy Value required in PAM Subaccount (or X) = e^{-Dividend*Time} *(1- NormDist(d1))

where:

e	=	Base of the Natural Logarithm
NormDist	=	Cumulative Standard Normal Distribution
d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

In order to calculate the percent of policy value required in the PAM Subaccount, we must first calculate d1:

d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

where:

ln	=	Natural Logarithm Function
	=	Guarantee Ratio
R	=	Rate
F	=	Fees
V	=	Volatility
T	=	Time

After calculating d1, the percent of policy value required in the PAM Subaccount can be calculated. Once calculated, appropriate transfers into or out of the PAM Subaccount will occur.

Following is a brief discussion of the values used in the formula.

The POLICY VALUE includes the value in both the investment options and in the PAM Subaccount.

The GUARANTEE RATIO is the policy value divided by 7% “Principal Back” Minimum Remaining Withdrawal Amount.

31

PAM METHOD TRANSFERS — (Continued)

The RATE is the interest rate used for the PAM Method. It is based on a long-term expectation based on historical interest rates and may vary over time.

The FEES is an approximation of average policy fees and charges associated with policies that have elected the Living Benefits Rider. This value may change over time.

The VOLATILITY represents the volatility of the returns of policy value for all in force policies and is based on the long-term expectation of the degree to which the policy values tend to fluctuate. This value may vary over time.

The TIME is an approximation based on actuarial calculations of historical average number of years (including any fraction) which we anticipate remain until any potential payments are made under the benefit. This value may vary over time.

The PERCENT OF POLICY VALUE TO BE ALLOCATED TO THE PAM SUBACCOUNT is computed for each policy. Ultimately the allocation for a policy takes into account the guarantees under the rider and the limit on allocations to the PAM Subaccount.

The CUMULATIVE STANDARD NORMAL DISTRIBUTION function assumes that random events are distributed according to the classic bell curve. For a given value it computes the percentage of such events which can be expected to be less than that value.

The NATURAL LOGARITHM function for a given value, computes the power to which e must be raised, in order to result in that value. Here, e is the base of the natural logarithms, or approximately 2.718282.

Example:

Day 1: Policy Value Declines by 10%

For purposes of this example we will assume that the policy value declines by 10% to $90,000 the day after the rider issue date from the initial premium amount of $100,000 producing a guarantee ratio of 90% ($90,000/$100,000). We will also assume:

Guarantee Ratio	=	90%
Rate	=	4.5%
Volatility	=	10%
Fees	=	3%
Time	=	20

First we calculate d1.

d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1	=	[ln(.90)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]
d1	=	.658832

32

PAM METHOD TRANSFERS — (Continued)

Using the value we just calculated for d1 we can now calculate the percent of policy value required in the PAM Subaccount.

Percent of Policy Value in PAM Subaccount (or X) = e-^{Dividend*Time} *(1-NormDist(d1))

X	=	(2.718282 ^ -.03 * 20) * (1 – NormDist(.658832))
X	=	13.9948%

Therefore, 13.9948% of the policy value is transferred to the PAM Subaccount, resulting in a total transfer of $12,595.32.

Day 2: Policy Value Recovers to 105% of Initial Value after the 10% Decline

For purposes of this example we will assume that after the policy value declined to $90,000 it recovered the next day to $105,000 producing a guarantee ratio of 105% ($105,000/$100,000). We will also assume:

Guarantee Ratio	=	105%
Rate	=	4.5%
Volatility	=	10%
Fees	=	3%
Time	=	20

First we calculate d1.

d1	=	[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1	=	[ln(1.05)+(.045 – .03 +.5*.10 ^ 2)* 20]/[.10 * 20^.5]
d1	=	1.003524

Using the value we just calculated for d1 we can now calculate the percent of policy value required in the PAM Subaccount.

Percent of Policy Value in PAM Subaccount (or X) = e^{-Dividend*Time} *(1 - NormDist(d1))

X = (2.718282 ^ -.03 * 20) * (1 – NormDist(1.003524))

X = 8.6605%

While the mathematical model would suggest we transfer only a portion of the policy value in the PAM Subaccount into your investment options (leaving 8.6605% in the PAM Subaccount), all of the policy value in the PAM Subaccount will be transferred into your investment options. If the Guarantee Ratio equals or exceeds 100%, then your policy value is greater than or equal to the value of the guarantee and there is no current need for any policy value to be allocated to the PAM Subaccount.

33

FINANCIAL STATEMENTS AND SCHEDULES – STATUTORY BASIS

Transamerica Life Insurance Company

Years Ended December 31, 2010, 2009 and 2008

Transamerica Life Insurance Company

Financial Statements and Schedules – Statutory Basis

Years Ended December 31, 2010, 2009 and 2008

Contents

Report of Independent Registered Public Accounting Firm	1
Audited Financial Statements
Balance Sheets – Statutory Basis	3
Statements of Operations – Statutory Basis	5
Statements of Changes in Capital and Surplus – Statutory Basis	7
Statements of Cash Flow – Statutory Basis	10
Notes to Financial Statements – Statutory Basis	12
Statutory-Basis Financial Statement Schedules
Summary of Investments – Other Than Investments in Related Parties	117
Supplementary Insurance Information	118
Reinsurance	119

Report of Independent Registered Public Accounting Firm

The Board of Directors

Transamerica Life Insurance Company

We have audited the accompanying statutory-basis balance sheets of Transamerica Life Insurance Company (the Company) as of December 31, 2010 and 2009, 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, 2010. Our audits 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 Insurance Division, Department of Commerce, of the State of Iowa, which practices differ from U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted accounting principles also are described in Note 1. The effects on the financial statements 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 Transamerica Life Insurance Company at December 31, 2010 and 2009, or the results of its operations or its cash flow for each of the three years in the period ended December 31, 2010.

1

However, in our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Transamerica Life Insurance Company at December 31, 2010 and 2009, and the results of its operations and its cash flow for each of the three years in the period ended December 31, 2010, in conformity with accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic statutory-basis financial statements taken as a whole, present fairly in all material respects the information set forth therein.

As discussed in Note 1 to the financial statements, in 2010, 2009, and 2008 in response to new accounting standards, the Company changed its method of accounting for collateral received related to certain financial transactions, deferred income taxes, and investments in loan-backed and structured securities. Also, as discussed in Notes 2 and 3 to the financial statements, at December 31, 2008 the Company, with the permission of the Insurance Division, Department of Commerce, of the State of Iowa, changed its policy for deferred income taxes and its calculation of reserves related to synthetic guaranteed investment contracts.

/s/ Ernst & Young LLP

Des Moines, Iowa

April 8, 2011

2

Transamerica Life Insurance Company

Balance Sheets – Statutory Basis

(Dollars in Thousands, Except per Share Amounts)

	December 31
	2010		2009
Admitted assets
Cash and invested assets:
Cash, cash equivalents and short-term investments	$	1,573,081	$	3,912,309
Bonds:
Affiliated entities		70,527		126,306
Unaffiliated		46,921,343		47,035,463
Preferred stocks:
Affiliated entities		7,162		7,632
Unaffiliated		123,925		152,661
Common stocks:
Affiliated entities (cost: 2010 - $666,018; 2009 - $681,297)		714,092		657,018
Unaffiliated (cost: 2010 - $307,132; 2009 - $360,043)		358,631		389,485
Mortgage loans on real estate		8,107,498		9,357,158
Real estate, at cost less accumulated depreciation (2010 - $55,396; 2009 - $52,214)
Home office properties		79,699		83,938
Investment properties		34,776		35,618
Properties held for sale		6,490		6,250
Policy loans		746,677		759,957
Receivables for securities		20,071		11,395
Securities lending reinvested collateral assets		3,956,880		—
Derivatives		107,125		105,704
Collateral balance		4,142		22,733
Other invested assets		2,460,490		2,590,207
Total cash and invested assets		65,292,609		65,253,834
Accrued investment income		542,992		567,326
Cash surrender value of life insurance policies		300,248		289,559
Premiums deferred and uncollected		223,886		280,202
Current federal income tax recoverable		222,917		288,946
Net deferred income tax asset		792,408		649,556
Reinsurance receivable		255,184		300,991
Receivable from parent, subsidiaries and affiliates		248,839		187,751
Accounts receivable		264,844		171,140
General agents pension fund		43,422		43,136
Reinsurance deposit receivable		146,715		137,437
Amounts incurred under modified coinsurance agreement		61,400		60,443
Goodwill		94,551		52,124
Other assets		25,709		27,654
Separate account assets		38,370,952		33,205,532
Total admitted assets	$	106,886,676	$	101,515,631

3

	December 31
	2010			2009
Liabilities and capital and surplus
Liabilities:
Aggregate reserves for policies and contracts:
Life	$	15,035,676		$	14,924,136
Annuity		17,990,509			19,080,480
Accident and health		3,418,734			3,317,854
Policy and contract claim reserves:
Life		306,384			325,407
Accident and health		210,969			194,930
Liability for deposit-type contracts		6,496,776			8,259,686
Other policyholders’ funds		20,473			21,006
Municipal reverse repurchase agreements		200,977			632,109
Remittances and items not allocated		417,545			507,629
Case level liability		7,415			13,236
Payable for derivative cash collateral		240,374			—
Asset valuation reserve		896,004			868,688
Interest maintenance reserve		1,045,860			203,669
Funds held under reinsurance treaties		13,184,805			14,073,538
Reinsurance in unauthorized reinsurers		7,055			11,969
Commissions and expense allowances payable on reinsurance assumed		62,485			61,500
Payable to affiliates		476,976			270,421
Payable for securities		4,366			68,822
Payable for securities lending		3,956,880			—
Transfers from separate accounts due or accrued (including $(547,780) and $(365,239) accrued for expense allowances recognized in reserves, net of reinsurance allowances at December 31, 2010 and 2009, respectively)		(512,837	)		(474,775	)
Amounts withheld or retained		169,393			169,294
Derivatives		221,171			357,733
Other liabilities		430,488			455,899
Separate account liabilities		38,300,074			33,145,575
Total liabilities		102,588,552			96,488,806
Capital and surplus:
Common stock, $10 per share par value, 1,000,000 shares authorized, 676,190 issued and outstanding at December 31, 2010 and 2009		6,762			6,762
Preferred stock, Series A, $10 per share par value, 42,500 shares authorized and issued (total liquidation value - $58,000) at December 31, 2010 and 2009; Series B, $10 per share par value, 250,000 shares authorized, 117,154 shares issued and 117,154 shares outstanding (total liquidation value -$1,171,540) at December 31, 2010 and 2009.		1,597			1,597
Treasury stock, Series A Preferred, $10 per share par value, 42,500 shares as of December 31, 2010 and 2009		(58,000	)		(58,000	)
Aggregate write-ins for other than special surplus funds		554,923			295,260
Surplus notes		150,000			150,000
Paid-in surplus		3,117,153			3,113,948
Unassigned surplus		525,689			1,517,258
Total capital and surplus		4,298,124			5,026,825
Total liabilities and capital and surplus	$	106,886,676		$	101,515,631

See accompanying notes.

4

Transamerica Life Insurance Company

Statements of Operations – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2010			2009			2008
							Restated
Revenues:
Premiums and other considerations, net of reinsurance:
Life	$	1,523,920		$	1,409,443		$	2,111,417
Annuity		6,931,132			5,997,868			4,700,329
Accident and health		710,067			692,821			706,198
Net investment income		2,919,171			3,073,157			3,886,926
Amortization of interest maintenance reserve		3,906			(11,138	)		29,315
Commissions and expense allowances on reinsurance ceded		892,482			844,831			(325,830	)
Income from fees associated with investment management, administration and contract guarantees for separate accounts		380,170			376,545			399,445
Reserve adjustment on reinsurance ceded		(351,287	)		(479,868	)		10,430,740
Consideration on reinsurance transaction		—			107			16,542
Income from administrative service agreement with affilate		51,177			40,040			44,122
Other income		85,480			92,279			16,005
		13,146,218			12,036,085			22,015,209
Benefits and expenses:
Benefits paid or provided for:
Life benefits		1,133,801			1,077,203			1,028,573
Accident and health benefits		496,368			436,567			492,379
Annuity benefits		1,084,962			1,304,213			1,597,820
Surrender benefits		6,208,241			4,979,209			7,773,476
Other benefits		215,848			142,045			742,343
Increase (decrease) in aggregate reserves for policies and contracts:
Life		51,172			(236,536	)		19,920
Annuity		(1,017,181	)		(4,337,005	)		(3,440,891	)
Accident and health		100,880			129,917			124,958
		8,274,091			3,495,613			8,338,578
Insurance expenses:
Commissions		1,440,391			1,315,400			1,445,898
General insurance expenses		764,037			636,705			683,967
Taxes, licenses and fees		72,666			102,602			147,885
Net transfers to separate accounts		1,664,131			2,009,163			800,973
Change in case level liability		(5,821	)		(525	)		(6,800	)
Consideration paid on reinsurance transactions		—			3,476,850			11,319,684
Other expenses		722,360			400,113			292,871
		4,657,764			7,940,308			14,684,478
Total benefits and expenses		12,931,855			11,435,921			23,023,056
Gain (loss) from operations before dividends to policyholders, federal income tax benefit and net realized capital gains (losses) on investments	$	214,363		$	600,164		$	(1,007,847	)

5

Transamerica Life Insurance Company

Statements of Operations – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2010			2009			2008
							Restated
Dividends to policyholders	$	10,074		$	11,010		$	12,165
Gain (loss) from operations before federal income tax benefit and net realized capital gains (losses) on investments		204,289			589,154			(1,020,012	)
Federal income tax benefit		(270,228	)		(104,942	)		(32,376	)
Gain (loss) from operations before net realized capital gains (losses) on investments		474,517			694,096			(987,636	)
Net realized capital gains (losses) on investments (net of related federal income taxes and amounts transferred to/from interest maintenance reserve)		(56,838	)		(700,521	)		366,218
Net income (loss)	$	417,679		$	(6,425	)	$	(621,418	)

See accompanying notes.

6

Transamerica Life Insurance Company

Statements of Changes in Capital and Surplus – Statutory Basis

(Dollars in Thousands)

	Common Stock			Preferred Stock		Treasury Stock			Aggregate Write-ins for Other than Special Surplus Funds		Participating Shareholders’ Surplus			Surplus Notes		Paid-in Surplus			Unassigned Surplus			Total Capital and Surplus
Balance at January 1, 2008, as restated	$	6,765		$	2,170	$	(631,400	)	$	—	$	2,002		$	150,000	$	2,694,296		$	2,121,268		$	4,345,101
Net loss		—			—		—			—		—			—		—			(621,418	)		(621,418	)
Change in net unrealized capital gains/losses, net of tax		—			—		—			—		—			—		—			(337,437	)		(337,437	)
Change in net unrealized foreign exchange capital gains/losses, net of tax		—			—		—			—		—			—		—			(20,767	)		(20,767	)
Change in net deferred income tax asset		—			—		—			—		—			—		—			(208,565	)		(208,565	)
Change in other nonadmitted assets		—			—		—			—		—			—		—			(85,798	)		(85,798	)
Change in provision for reinsurance in unauthorized companies		—			—		—			—		—			—		—			19,970			19,970
Change in reserve on account of change in valuation basis		—			—		—			—		—			—		—			35,039			35,039
Change in asset valuation reserve		—			—		—			—		—			—		—			255,123			255,123
Change in surplus in separate accounts		—			—		—			—		—			—		—			(40,108	)		(40,108	)
Reinsurance transactions		—			—		—			—		—			—		—			962,518			962,518
Increase in admitted deferred tax due to permitted practice		—			—		—			380,358		—			—		—			—			380,358
Correction of interest on taxes																				(969	)		(969	)
Dividends to stockholders		—			—		—			—		—			—		—			(316,438	)		(316,438	)
Change in deferred premiums associated with reserve valuation change		—			—		—			—		—			—		—			(17,488	)		(17,488	)
Return of capital related to stock rights plan of indirect parent		—			—		—			—		—			—		(14,543	)		—			(14,543	)
Capital contribution		—			—		—			—		—			—		507,239			—			507,239
Redemption of participating common stock		(1	)		—		—			—		(1,681	)		—		(1	)		—			(1,683	)
Participating shareholder activity		—			—		—			—		57			—		—			(57	)		—
Balance at December 31, 2008, as restated	$	6,764		$	2,170	$	(631,400	)	$	380,358	$	378		$	150,000	$	3,186,991		$	1,744,873		$	4,840,134

7

Transamerica Life Insurance Company

Statements of Changes in Capital and Surplus – Statutory Basis (continued)

(Dollars in Thousands)

	Common Stock			Preferred Stock			Treasury Stock			Aggregate Write-ins for Other than Special Surplus Funds			Participating Shareholders’ Surplus			Surplus Notes		Paid-in Surplus			Unassigned Surplus			Total Capital and Surplus
Balance at December 31, 2008, as restated	$	6,764		$	2,170		$	(631,400	)	$	380,358		$	378		$	150,000	$	3,186,991		$	1,744,873		$	4,840,134
Cumulative effect of change in accounting principle		—			—			—			—			—			—		—			(9,707	)		(9,707	)
Net loss		—			—			—			—			—			—		—			(6,425	)		(6,425	)
Change in net unrealized capital gains/losses, net of tax		—			—			—			—			—			—		—			(381,912	)		(381,912	)
Change in net unrealized foreign exchange gains/losses, net of tax		—			—			—			—			—			—		—			11,139			11,139
Change in net deferred income tax asset		—			—			—			—			—			—		—			(169,940	)		(169,940	)
Change in other nonadmitted assets		—			—			—			—			—			—		—			(170,812	)		(170,812	)
Change in provision for reinsurance in unauthorized companies		—			—			—			—			—			—		—			34,966			34,966
Change in reserve on account of change in valuation basis		—			—			—			—			—			—		—			(31,058	)		(31,058	)
Change in asset valuation reserve		—			—			—			—			—			—		—			398,394			398,394
Change in surplus in separate accounts		—			—			—			—			—			—		—			13,315			13,315
Reinsurance transactions		—			—			—			—			—			—		—			71,455			71,455
Decrease in admitted deferred tax attributable to expiration of permitted practice		—			—			—			(380,358	)		—			—		—			—			(380,358	)
Increase in admitted deferred tax asset to SSAP No. 10R		—			—			—			295,260			—			—		—			—			295,260
Corrections of errors		—			(573	)		573,400			—			—			—		(572,827	)		(898	)		(898	)
Dividends to stockholders		—			—			—			—			—			—		—			(10,031	)		(10,031	)
Return of capital related to stock rights plan of indirect parent		—			—			—			—			—			—		(214	)		—			(214	)
Dissolution of affiliate into the Company		—			—			—			—			—			—		—			23,938			23,938
Capital contribution		—			—			—			—			—			—		500,000			—			500,000
Redemption of participating common stock		(2	)		—			—			—			(417	)		—		(2	)		—			(421	)
Participating shareholder activity		—			—			—			—			39			—		—			(39	)		—
Balance at December 31, 2009	$	6,762		$	1,597		$	(58,000	)	$	295,260		$	—		$	150,000	$	3,113,948		$	1,517,258		$	5,026,825

8

Transamerica Life Insurance Company

Statements of Changes in Capital and Surplus – Statutory Basis (continued)

(Dollars in Thousands)

	Common Stock		Preferred Stock		Treasury Stock			Aggregate Write-ins for Other than Special Surplus Funds		Surplus Notes		Paid-in Surplus		Unassigned Surplus			Total Capital  and Surplus
Balance at December 31, 2009	$	6,762	$	1,597	$	(58,000	)	$	295,260	$	150,000	$	3,113,948	$	1,517,258			5,026,825
Cumulative effect of change in accounting principle		—		—		—			—		—		—		6,403			6,403
Net income		—		—		—			—		—		—		417,679			417,679
Change in net unrealized capital gains/losses, net of tax		—		—		—			—		—		—		153,857			153,857
Change in net unrealized foreign exchange capital gains/losses, net of tax		—		—		—			—		—		—		7,912			7,912
Change in net deferred income tax asset		—		—		—			—		—		—		(207,877	)		(207,877	)
Change in other nonadmitted assets		—		—		—			—		—		—		109,110			109,110
Change in provision for reinsurance in unauthorized companies		—		—		—			—		—		—		4,914			4,914
Change in reserve on account of change in valuation basis		—		—		—			—		—		—		119			119
Change in asset valuation reserve		—		—		—			—		—		—		(27,316	)		(27,316	)
Change in surplus in separate accounts		—		—		—			—		—		—		10,366			10,366
Long-term incentive compensation		—		—		—			—		—		3,205		—			3,205
Reinsurance transactions		—		—		—			—		—		—		(64,348	)		(64,348	)
Increase in admitted deferred tax asset pursuant to SSAP No. 10R		—		—		—			259,663		—		—		—			259,663
Dividends to stockholders		—		—		—			—		—		—		(1,400,000	)		(1,400,000	)
Change in deferred premium due to valuation adjustment		—		—		—			—		—		—		(2,388	)		(2,388	)
Balance at December 31, 2010	$	6,762	$	1,597	$	(58,000	)	$	554,923	$	150,000	$	3,117,153	$	525,689		$	4,298,124

See accompanying notes.

9

Transamerica Life Insurance Company

Statements of Cash Flow – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2010			2009			2008
							Restated
Operating activities
Premiums collected, net of reinsurance	$	9,222,197		$	7,981,888		$	7,620,124
Net investment income received		2,985,106			3,266,446			4,386,609
Miscellaneous income (expense)		569,910			(127,792	)		914,930
Benefit and loss related payments		(9,022,576	)		(8,847,466	)		(11,345,127	)
Net transfers to separate accounts		(1,709,930	)		(1,776,576	)		(238,756	)
Commissions, expenses paid and aggregate write-ins for deductions		(2,756,812	)		(5,957,821	)		(3,225,421	)
Dividends paid to policyholders		(10,559	)		(11,386	)		(13,295	)
Federal and foreign income taxes recovered (paid)		(113,355	)		391,699			(398,359	)
Net cash used in operating activities		(836,019	)		(5,081,008	)		(2,299,295	)
Investing activities
Proceeds from investments sold, matured or repaid:
Bonds		24,609,623			16,975,896			19,888,559
Common stocks		167,903			141,360			131,682
Preferred stocks		143,250			100,705			439,153
Mortgage loans		1,270,379			1,682,140			1,146,455
Real estate and properties held for sale		1,316			24,100			49,453
Other invested assets		693,425			560,339			2,592,998
Receivable for securities		(66,950	)		78,827			18,350
Miscellaneous proceeds		112,803			266,646			61,311
Total investment proceeds		26,931,749			19,830,013			24,327,961
Costs of investments acquired:
Bonds		(23,107,917	)		(11,629,415	)		(20,039,680	)
Common stocks		(96,764	)		(92,767	)		(440,692	)
Preferred stocks		(112,885	)		(115,980	)		(355,870	)
Mortgage loans		(38,062	)		(231,832	)		(398,019	)
Real estate and properties held for sale		(350	)		(1,100	)		(11,405	)
Other invested assets		(4,437,589	)		(296,564	)		(1,819,475	)
Payable for securities		—			—			(131,194	)
Miscellaneous applications		(227,105	)		(451,760	)		(278,394	)
Total cost of investments acquired		(28,020,672	)		(12,819,418	)		(23,474,729	)
Net decrease (increase) in policy loans		13,279			(27,369	)		(41,733	)
Net cost of investments acquired		(28,007,393	)		(12,846,787	)		(23,516,462	)
Net cash (used in) provided by investing activities		(1,075,644	)		6,983,226			811,499

10

Transamerica Life Insurance Company

Statements of Cash Flow – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2010			2009			2008
							Restated
Financing and miscellaneous activities
Net withdrawals on deposit-type contract funds and other liabilities without life or disability contingencies	$	(1,839,672	)	$	(5,137,903	)	$	(735,535	)
Funds held under reinsurance treaties with unauthorized reinsurers		(892,010	)		1,942,945			4,819,583
Dividends paid to stockholders		(1,400,000	)		(10,031	)		(316,438	)
Redemption of participating shareholders		—			(421	)		(1,683	)
Capital contribution received		—			500,000			507,239
Receivable from parent, subsidiaries and affiliates		(61,088	)		29,728			64,157
Payable to parent, subsidiaries and affiliates		206,555			25,557			(96,126	)
Payable for securities lending		3,956,880			—			—
Other cash provided (used)		(398,230	)		1,301,648			(1,250,156	)
Net cash provided by (used in) financing and miscellaneous activities		(427,565	)		(1,348,477	)		2,991,041
Net increase (decrease) in cash, cash equivalents and short-term investments		(2,339,228	)		553,741			1,503,245
Cash, cash equivalents and short-term
investments:
Beginning of year		3,912,309			3,358,568			1,855,323
End of year	$	1,573,081		$	3,912,309		$	3,358,568

See accompanying notes.

11

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

December 31, 2010

1. Organization and Summary of Significant Accounting Policies

Transamerica Life Insurance Company (the Company) is a stock life insurance company owned by Transamerica Corporation (74.01% of preferred shares), AEGON USA, LLC (25.99% of preferred shares), and Transamerica International Holdings, Inc. (100% of common shares). Prior to the mergers discussed below, the Company was owned by AEGON USA, LLC (100% of preferred shares) and Transamerica Occidental Life Insurance Company (100% of common shares). Transamerica Corporation (Transamerica), AEGON USA, LLC (AEGON), Transamerica International Holdings, Inc. (TIHI) and Transamerica Occidental Life Insurance Company (TOLIC) are indirect wholly-owned subsidiaries of AEGON N.V., a holding company organized under the laws of The Netherlands.

On October 1, 2009, the Company completed a merger with Iowa Fidelity Life Insurance Company (IFLIC), which was wholly owned by AEGON. Prior to the merger, IFLIC was partially owned by external shareholders holding 1,500 shares of participating common stock. All shares of participating common stock were redeemed prior to the merger in exchange for cash in the amount of $421. The merger was accounted for in accordance with Statement of Statutory Accounting Principles (SSAP) No. 68, Business Combinations and Goodwill, as a statutory merger. As such, financial statements for periods prior to the merger were combined and the recorded assets, liabilities and surplus of IFLIC were carried forward to the merged company. As a result of the merger, IFLIC’s common stock was deemed cancelled by operation of law and the outstanding common shares of IFLIC, on the date of the merger, were retired and considered authorized but unissued stock of the merged entity.

In exchange for its agreement to merge IFLIC into the Company, AEGON received 149 shares of the Company’s Series B preferred shares which are equal in value to the common stock of IFLIC deemed cancelled by the merger.

On October 1, 2008, the Company completed a merger with TOLIC, which was directly owned by TIHI (100% of common shares) and Transamerica (100% of preferred shares). On October 2, 2008, the Company completed a merger with Life Investors Insurance Company of America (LIICA), which was wholly owned by AEGON. The mergers were accounted for in accordance with SSAP No. 68, as statutory mergers. As such, financial statements for periods prior to the merger were combined and the recorded assets, liabilities and surplus of TOLIC and LIICA were carried forward to the merged company. As a result of the merger, TOLIC and LIICA’s common and preferred stock were deemed cancelled by operation of law and the outstanding common shares of the Company, on the date of the merger, were retired and considered authorized but unissued stock of the merged entity.

12

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

In exchange for its agreement to merge TOLIC into the Company, TIHI received common stock of the Company equal in value to the common stock of TOLIC deemed cancelled by the merger and Transamerica received Series B preferred stock of the Company equal in value to the Series B preferred stock of TOLIC deemed cancelled by the merger.

Specifically, TIHI received 676,190 shares of the Company’s common shares, and Transamerica received 86,590 shares of the Company’s Series B preferred shares. In exchange for its agreement to merge LIICA into the Company, AEGON received common stock of TIHI equal in value to the common stock of LIICA deemed cancelled by the merger. Specifically, AEGON received 18 shares of TIHI’s common shares.

Nature of Business

The Company sells individual non-participating whole life, endowment and term contracts, structured settlements, pension products and reinsurance, as well as a broad line of single fixed and flexible premium annuity products, guaranteed interest contracts and funding agreements. In addition, the Company offers group life, universal life, credit life, and individual and specialty health coverages. The Company is licensed in 49 states and the District of Columbia, Guam, Puerto Rico and US Virgin Islands. Sales of the Company’s products are primarily through a network of agents, brokers and financial institutions.

Basis of Presentation

The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.

The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa, which practices differ from accounting principles generally accepted in the United States (GAAP). The more significant variances from GAAP are:

13

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

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 (OCI) for those designated as available-for-sale. Fair value for GAAP is based on indexes, third party pricing services, brokers, external fund managers and internal models. For statutory reporting, the NAIC allows insurance companies to report the fair value determined by the Securities Valuation Office of the NAIC (SVO) or determine the fair value by using a permitted valuation method.

All single class and multi-class mortgage-backed/asset-backed securities (e.g., CMOs) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium of such securities using either the retrospective or prospective methods. If the fair value of the mortgage-backed/asset-backed security is less than amortized cost, an entity shall assess whether the impairment is other-than-temporary. An other-than-temporary impairment is considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security. An other-than-temporary impairment is also considered to have occurred if the fair value of the mortgage-backed/asset-backed security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis.

If it is determined an other-than-temporary impairment has occurred as a result of the cash flow analysis, the security is written down to the discounted estimated future cash flows. If an other-than-temporary impairment has occurred due to intent to sell or lack of intent and ability to hold, the security is written down to fair value. Prior to 2009, if it was determined that a decline in fair value was other-than-temporary, the cost basis of the security was written down to the undiscounted estimated future cash flows.

14

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

For GAAP, all securities, purchased or retained, that represent beneficial interests in securitized assets (e.g., CMO, CBO, CDO, CLO, MBS and ABS securities), other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If it is determined that a decline in fair value is other-than-temporary and the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the other-than-temporary impairment should be recognized in earnings equal to the entire difference between the amortized cost basis and its fair value at the impairment date. If the entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery, the other-than-temporary impairment should be separated into a) the amount representing the credit loss, which is recognized in earnings, and b) the amount related to all other factors, which is recognized in OCI, net of applicable taxes. Prior to 2009, if it was determined that a decline in fair value was other-than-temporary, the cost basis of the security was written down to fair value. If high credit quality securities are adjusted, the retrospective method is used.

Derivative instruments used in hedging transactions that meet the criteria of an effective hedge are valued and reported in a manner that is consistent with the hedged asset or liability. Embedded derivatives are not accounted for separately from the host contract. Derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge are accounted for at fair value, and the changes in the fair value are recorded in unassigned surplus as unrealized gains and losses. Under GAAP, the effective and ineffective portions of a single hedge are accounted for separately, an embedded derivative within a contract that is not clearly and closely related to the economic characteristics and risk of the host contract is accounted for separately from the host contract and valued and reported at fair value, and the change in fair value for cash flow hedges is credited or charged directly to a separate component of capital and surplus rather than to income as required for fair value hedges.

Derivative instruments are also used in replication transactions. In these transactions, the derivative is valued in a manner consistent with the cash investment and replicated asset. For GAAP, the derivative is reported at fair value with the changes in fair value reported in income.

15

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

Investments in real estate are reported net of related obligations rather than on a gross basis as for GAAP. Real estate owned and occupied by the Company is included in investments rather than reported as an operating asset as under GAAP, and investment income and operating expenses for statutory reporting include rent for the Company’s occupancy of those properties. Changes between depreciated cost and admitted amounts are credited or charged directly to unassigned surplus rather than to income as would be required under GAAP.

Valuation allowances are established for mortgage loans, if necessary, based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, such allowances are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral.

The initial valuation allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus as part of the change in asset valuation reserve (AVR), rather than being included as a component of earnings as would be required under GAAP.

Valuation Reserves: Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity of the bond or mortgage loan based on groupings of individual securities sold in five year bands. That net deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the statement of operations on a pre-tax basis in the period that the assets giving rise to the gains or losses are sold.

The AVR provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus; AVR is not recognized for GAAP.

Subsidiaries: The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company as would be required under GAAP.

16

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

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.

Separate Accounts with Guarantees: Some of the Company’s separate accounts provide policyholders with a guaranteed return. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. These separate accounts are included in the general account for GAAP due to the nature of the guaranteed return.

Nonadmitted Assets: Certain assets designated as “nonadmitted”, primarily net deferred tax assets and other assets not specifically identified as an admitted asset within the NAIC Accounting Practices and Procedures Manual (NAIC SAP), are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the balance sheet to the extent that they are not impaired.

Universal Life and Annuity Policies: Revenues for universal life and annuity policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received. Benefits incurred represent surrenders and death benefits paid and the change in policy reserves. Premiums received and benefits incurred for annuity policies without mortality or morbidity risk and guaranteed interest in group annuity contracts are recorded directly to a policy reserve account using deposit accounting, without recognizing premium income or benefits expense. Interest on these policies is reflected in other benefits. Under GAAP, for universal life policies, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent interest credited to the account values and the excess of benefits paid over the policy account value. Under GAAP, for all annuity policies without significant mortality risk, premiums received and benefits paid would be recorded directly to the reserve liability.

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.

17

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

Reinsurance: Any reinsurance amounts deemed to be uncollectible have been written off through a charge to operations. In addition, a liability for reinsurance balances would be established for unsecured policy reserves ceded to reinsurers not authorized to assume such business. Changes to the liability are credited or charged directly to unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings.

Losses associated with an indemnity reinsurance transaction are reported within income when incurred rather than being deferred and amortized over the remaining life of the underlying reinsured contracts as would be required under GAAP.

Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as would be required under GAAP.

Commissions allowed by reinsurers on business ceded are reported as income when incurred rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP.

Deferred Income Taxes: Effective December 31, 2009, the Company began computing deferred income taxes in accordance with SSAP No. 10R, Income Taxes – Revised, A Temporary Replacement of SSAP No. 10, discussed in further detail in the Recent Accounting Pronouncement section of this note. Under SSAP 10R, deferred income tax assets are limited to 1) the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback provisions, not to exceed three years, plus 2) the lesser of the remaining gross deferred income tax assets expected to be realized within three years of the balance sheet date or 15% 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 after considering the character (i.e., ordinary versus capital) of the deferred tax assets and liabilities. The remaining deferred income tax assets are nonadmitted.

Deferred income taxes do not include amounts for state taxes. Under GAAP, state taxes are included in the computation of deferred income taxes, a deferred income tax asset is recorded for the amount of gross deferred income tax assets expected to be realized in all future years, and a valuation allowance is established for deferred income tax assets not realizable.

18

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

Goodwill: Goodwill is admitted subject to an aggregate limitation of ten percent of the capital and surplus in the most recently filed annual statement excluding electronic data processing equipment, operating system software, net deferred income tax assets and net positive goodwill. Excess goodwill is nonadmitted. Goodwill is amortized over ten years. Under GAAP, goodwill is measured as the excess of the consideration transferred plus the fair value of any noncontrolling interest in the acquiree at the acquisition date as compared to the fair values of the identifiable net assets acquired. Goodwill is not amortized but is assessed for impairment on an annual basis, or more frequently if circumstances indicate that a possible impairment has occurred.

Policyholder Dividends: Policyholder dividends are recognized when declared rather than over the term of the related policies as would be required under GAAP.

Surplus Notes: Surplus notes are reported as surplus rather than as liabilities as would be required under GAAP.

Statements of Cash Flow: Cash, cash equivalents and short-term investments in the statements of cash flow represent cash balances and investments with initial maturities of one year or less. Under GAAP, the corresponding caption of cash and cash equivalents includes cash balances and investments with initial maturities of three months or less.

Securities Lending Assets and Liabilities: Beginning December 31, 2010, for securities lending programs, cash collateral received which may be sold or repledged by the Company is reflected as a one-line entry on the balance sheet (securities lending reinvested collateral assets) and a corresponding liability is established to record the obligation to return the cash collateral. Collateral received which may not be sold or repledged is not recorded on the Company’s balance sheet. Prior to 2010, cash collateral received from securities lending was not recorded on the Company’s balance sheet because the cash collateral was restricted. Under GAAP the reinvested collateral is included within invested assets (i.e. it is not one-line reported).

The effects of the foregoing variances from GAAP on the accompanying statutory-basis financial statements have not been determined by the Company, but are presumed to be material.

19

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 an NAIC designation of 6, are reported at amortized cost using the interest method.

Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method, including anticipated prepayments, except for those with an initial NAIC designation of 6, which are valued at the lower of amortized cost or fair value. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities, which are valued using the prospective method.

Investments in both affiliated and unaffiliated preferred stocks in good standing are reported at cost or amortized cost. Investments in preferred stocks not in good standing are reported at the lower of cost or fair value, and the related net unrealized capital gains (losses) are reported in unassigned surplus along with any adjustment for federal income taxes.

Hybrid securities, as defined by the NAIC, are securities designed with characteristics of both debt and equity and provide protection to the issuer’s senior note holders. These securities meet the definition of a bond, in accordance with SSAP No. 26, Bonds, excluding Loan-backed and Structured Securities and therefore, are reported at amortized cost or fair value based upon their NAIC rating.

Common stocks of unaffiliated companies, which includes shares of mutual funds, are reported at fair value and the related net unrealized capital gains or losses are reported in unassigned surplus along with any adjustment for federal income taxes.

Common stocks of affiliated insurance subsidiaries are reported based on underlying statutory equity plus the admitted portion of goodwill. Common stocks of affiliated noninsurance subsidiaries are reported based on underlying audited GAAP equity. The net change in the subsidiaries’ equity is included in the change in net unrealized capital gains or losses, reported in unassigned surplus along with any adjustment for federal income taxes.

20

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

The Company is restricted to trading Primus Guaranty, Ltd (Primus) a common stock holding, due to its ownership interest, which would require special securities filings prior to executing any purchase or sale transactions in regard to these securities. The Company’s interest in Primus does not meet the definition of an affiliate, and is therefore accounted for as an unaffiliated common stock investment. The carrying amount in Primus, which is carried at fair value, as of December 31, 2010 and 2009 was $28,657 and $17,027, respectively.

Short-term investments include investments with remaining maturities of one year or less at the time of acquisition and are principally stated at amortized cost.

Cash equivalents are short-term highly liquid investments with original maturities of three months or less and are principally stated at amortized cost.

Mortgage loans are reported at unpaid principal balances, less an allowance for impairment. A mortgage loan is considered to be impaired when it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines that the impairment is other-than-temporary, the mortgage loan is written down to realizable value and a realized loss is recognized.

Land is reported at cost. Real estate occupied by the Company is reported at depreciated cost net of encumbrances. Real estate held for the production of income is reported at depreciated cost net of related obligations. Real estate that the Company has the intent to sell is reported at the lower of depreciated cost or fair value, net of related obligations. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties.

Policy loans are reported at unpaid principal balances.

The Company has minority ownership interests in joint ventures and limited partnerships. The Company carries these investments based on its interest in the underlying audited GAAP equity of the investee.

Investments in Low Income Housing Tax Credit (LIHTC) properties are valued at amortized cost. Tax credits are recognized in operations in the tax reporting year in which the tax credit is utilized by the Company.

Other “admitted assets” are valued principally at cost, as required or permitted by Iowa Insurance Laws.

21

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

Realized capital gains and losses are determined using the specific identification method and are recorded net of related federal income taxes. Changes in admitted asset carrying amounts of bonds, mortgage loans, common and preferred stocks are credited or charged directly to unassigned surplus.

Interest income is recognized on an accrual basis. The Company does not accrue income on bonds in default, mortgage loans on real estate in default and/or foreclosure or which are delinquent more than twelve months, or real estate where rent is in arrears for more than three months. Income is also not accrued when collection is uncertain. In addition, accrued interest is excluded from interest income when payment exceeds 90 days past due. At December 31, 2010 and 2009, the Company excluded investment income due and accrued of $314 and $2,924, respectively, with respect to such practices.

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 for all investments other than loan-backed or structured securities, which are reduced to the present value of expected cash flows where the Company has the ability and intent to hold the security until recovery. Such reductions in carrying value are recognized as realized losses on investments.

For dollar repurchase agreements, the Company receives cash collateral in an amount at least equal to the fair value of the securities transferred by the Company in the transaction as of the transaction date. Cash received as collateral will be invested as needed or used for general corporate purposes of the Company.

Derivative Instruments

Interest rate swaps are the primary derivative financial instruments used in the overall asset/liability management process to modify the interest rate characteristics of the underlying asset or liability. These interest rate swaps generally provide for the exchange of the difference between fixed and floating rate amounts based on an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally amortized cost, in the financial statements. If the swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the hedged instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

22

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

The Company may hold foreign denominated assets or liabilities and cross currency swaps are utilized to convert the asset or liability to a US denominated security. Cross currency swap agreements are contracts to exchange two principal amounts of two currencies at the prevailing exchange rate at inception of the contract. During the life of the swap, the counterparties exchange fixed or floating rate interest payments in the swapped currencies. At maturity, the principal amounts are again swapped at a pre-determined rate of exchange. Each asset or liability is hedged individually and the terms of the swap must meet the terms of the hedged instrument. For cross currency swaps qualifying for hedge accounting, the premium or discount is amortized into income over the life of the contract and the foreign currency translation adjustment is recorded as unrealized gain/loss in unassigned surplus. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus. If a swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the hedged instrument receives that treatment.

The Company may issue foreign denominated assets or liabilities and use forward rate agreements to hedge foreign currency risk associated with these products. These forward agreements are marked to fair value based on the current forward rate on the financial statements thru unassigned surplus, and cash payments and/or receipts are recognized as realized gain or losses.

The Company issues products providing the customer a return based on various global equity market indices. The Company uses global futures contracts and/or options to hedge the liability option risk associated with these products. Futures are marked to fair value 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. Options are marked to fair value in the balance sheet and fair value adjustments are recorded in unassigned surplus.

An interest rate floor provides for the receipt of payments in the event interest rates fall below the strike rates in the contract. The interest rate floor is designed to generate cash flows to offset the lower cash flows received on assets during low interest rate environments. The Company pays a single premium at the beginning of the contract. These interest rate floors are marked to fair value in the balance sheet and the fair value adjustment is recorded in capital and surplus.

Capped floating rate commercial mortgage loans and interest rate caps that are designated as hedges and meet hedge accounting rules are carried at amortized cost in the financial statements. A gain or loss upon early termination would be reflected in the IMR similar to the underlying instrument. Caps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

23

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

For forecasted hedge transactions, the deferred gain (loss) is recognized in income as the hedged asset affects income. If the derivative is no longer effective at achieving the desired risk management objective or if the forecasted transaction is no longer probable, hedge accounting will cease and the forward-starting swap will be marked to fair value through unassigned surplus.

The Company may sell products with expected benefit payments extending beyond investment assets currently available in the market. Because assets will have to be purchased in the future to fund future liability cash flows, the Company is exposed to the risk of future investments made at lower yields than what is assumed at the time of pricing. Forward-starting interest rate swaps are utilized to lock-in the current forward rate. The accrual of income for forward-starting interest rate swaps begins at the forward date, rather than at the inception date. These forward-starting swaps meet hedge accounting rules and are carried at cost in the financial statements. Gains and losses realized upon termination of the forward-starting swap are deferred and used to adjust the basis of the asset purchased in the hedged forecasted period. The basis adjustment is then amortized into income as a yield adjustment to the asset over its life.

In addition to utilizing forward starting swaps to mitigate the risk of future re-investment risk at lower yields, the Company also uses put options. These put options are used when rates are below the Company’s target rate. In these market environments, the Company will sell put options on the forward starting swaps of which they would like to enter into. The option period will be considered an income generation transaction. Since the underlying is a derivative, the option will be marked to market with the offset through surplus and the premium received for the written option is deferred during the option period. If the option is exercised, the premium will adjust the forward starting swap’s acquisition cost. Once acquired, the forward starting swap will then be accounted for as outlined above.

24

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

A replication transaction is a derivative transaction entered into conjunction with a cash instrument to reproduce the investment characteristics of an otherwise permissible investment. The Company replicates investment grade corporate bonds by combining a AAA rated security as a cash component with a credit default swap which, in effect, converts the high quality asset in a lower rated investment grade asset. The benefits of using the swap market to replicate credit include possible enhanced relative values as well as ease of executing larger transactions in a shortened time frame. Generally, a premium is received by the Company on a periodic basis and recognized in investment income. In the event the representative issuer defaults on its debt obligation referenced in the contract, a payment equal to the notional amount of the contract will be made by the Company and recognized as a capital loss. The Company replicates hybrid fixed to floating treasuries by combining a US Treasury cash component with a forward starting swap which, in effect converts a fixed US Treasury into hybrid fixed to floating treasury. The purpose of these replications is to aid duration matching between the treasuries and the supported liabilities. Generally these swaps are carried at amortized cost with periodic interest payments beginning at a future date. Any early terminations are recognized as capital gains or losses. The Company complies with the specific rules established in AVR for replication transactions.

The Company holds some credit default swaps linked to a collateralized debt obligation structure. The Company was put into these swaps as a result of market events on a liquidity facility it had entered into. The Company does not intend to enter similar transactions in this current form. Under this transaction the Company receives a fee in exchange for providing credit protection if the underlying collateralized debt obligation structure incurs losses greater than its supporting collateral. The fee will be recorded in investment income. These swaps are marked to fair value in the balance sheet and the fair value adjustment is recorded in capital and surplus.

Separate Accounts

The majority of the separate accounts held by the Company, primarily for individual policyholders as well as for group pension plans, do not have any minimum guarantees, and the investment risks associated with fair value changes are borne by the policyholder. The assets in the accounts, carried at estimated fair value, consist of underlying mutual fund shares, common stocks, long-term bonds and short-term investments.

Certain other separate accounts held by the Company provide a minimum guaranteed return of 3% of the average investment balance to policyholders. The assets consist of long-term bonds and short-term investments which are carried at amortized cost.

25

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

Assets held in trust for purchases of variable universal life and annuity contracts and the Company’s corresponding obligation to the contract owners are shown separately in the balance sheets. The assets in the separate accounts are valued at fair value. Income and gains and losses with respect to the assets in the separate accounts accrue to the benefit of the contract owners and, accordingly, the operations of the separate accounts are not included in the accompanying financial statements. The investment risks associated with fair value changes of the separate accounts are borne entirely by the policyholders except in cases where minimum guarantees exist. The Company received variable contract premiums of $6,368,599, $4,279,394 and $4,182,626 in 2010, 2009 and 2008, respectively. In addition, the Company received $380,170, $376,545 and $399,445 in 2010, 2009 and 2008, respectively, related to fees associated with investment management, administration and contractual guarantees for separate accounts.

Aggregate Reserves for Policies and Contracts

Life, annuity and accident and health benefit reserves are developed by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed cash value, or the amount required by law.

The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium for periods beyond the month of death.

The aggregate policy reserves for life insurance policies are based principally upon the 1941, 1958, 1980 and 2001 Commissioners’ Standard Ordinary Mortality and American Experience Mortality Tables. The reserves are calculated using interest rates ranging from 2.00 to 6.00 percent and are computed principally on the Net Level Premium Valuation and the Commissioners’ Reserve Valuation Methods. Reserves for universal life policies are based on account balances adjusted for the Commissioners’ Reserve Valuation Method.

Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Generally, mean reserves are determined by computing the regular mean reserve for the plan at the true age and holding, in addition, one-half (1/2) of the extra premium charge for the year. For certain flexible premium and fixed premium universal life insurance products, reserves are calculated utilizing the Commissioner’s Reserve Valuation Method for universal life policies and recognizing any substandard ratings.

26

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

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 and without life contingencies are equal to the present value of future payments assuming interest rates ranging from 2.00 to 11.25 percent and mortality rates, where appropriate, from a variety of tables.

Annuity reserves also include guaranteed investment contracts (GICs) and funding agreements classified as life-type contracts as defined in SSAP No. 50, Classifications and Definitions of Insurance or Managed Care Contracts In Force. These liabilities have annuitization options at guaranteed rates and consist of floating interest rate and fixed interest rate contracts. The contract reserves are carried at the greater of the account balance or the value as determined for an annuity with cash settlement options, on a change in fund basis, according to the Commissioners’ Annuity Reserve Valuation Method.

Accident and health policy reserves are equal to the greater of the gross unearned premiums or any required mid-terminal reserves plus net unearned premiums and the present value of amounts not yet due on both reported and unreported claims.

Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula. Tabular interest on funds not involving life contingencies has also been determined primarily by formula.

During 2009, the Company implemented an improved valuation method for single premium group annuity (SPGA) products. The prior method approximated the reserve using a spreadsheet-based balance roll forward. The current method is a seriatim valuation using a software package capable of making these calculations. The change in valuation process resulted in an increase in reserves in the amount of $3,053. The change in reserves has been credited directly to unassigned surplus.

During 2010, the Company reported a decrease in reserves on account of changes in valuation bases of $3,642 due to continued conversion from the spreadsheet-based balance roll forward method of valuation of SPGA products to a seriatim valuation. In addition, the Company continued to make enhancements to existing valuation platforms and converted from client based reserves to in-house seriatim calculations during 2010. These changes resulted in an increase in reserves of $3,523. The net change in reserves of $119 due to the conversions has been credited directly to unassigned surplus. Related to this change was a corresponding decrease in the deferred premium asset of $2,388. This amount was also charged directly to unassigned surplus.

27

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

During 2009, the Company reversed a change in reserve methodology implemented in 2008 pertaining to the change in valuation interest rates from those required under California insurance law to those allowed under Iowa insurance law due to the merger of TOLIC into TLIC. The Company changed back to valuation interest rates required under California insurance law during 2009 to meet the minimum aggregate reserve requirement for California and to preserve consistency in valuation rates and methods used for TOLIC’s California issued policies. This change in valuation process resulted in an increase in reserves in the amount of $28,005 which has been charged directly to unassigned surplus.

During 2008, the Company’s reserves decreased by $35,039 due to various changes in valuation basis. A decrease in reserves of $36,442 resulted from various valuation system upgrades or enhancements, the largest of which was the Prophet conversion. During 2008, the Company updated the valuation process which included conversion to the Prophet valuation system, subject to existing contractual mirror reserving requirements. Previously, reserves were determined by applying client reported data, with a one quarter of a year lag, against current in force volumes. The new method calculates the reserves directly (using Prophet) based on the current in force. The change in valuation process resulted in a decrease in reserves in the amount of $30,022, with a corresponding decrease in deferred premiums of $17,488. The change in reserves has been credited directly to unassigned surplus. A decrease in reserves of $23,967 represents a change in assumptions regarding the policyholder’s election to exercise the Supplementary Retirement Income Option rider attached to certain Universal Life policies. A decrease in reserves of $28,921 represents a change in valuation interest rates from those required under California insurance law to those allowed under Iowa insurance law due to the merger of TOLIC into TLIC. Also during 2008, the Company updated assumptions and made enhancements to valuation methodology related to its accident and health reserves. These changes resulted in a partially offsetting increase in accident and health reserves of $54,291.

Policy and Contract Claim Reserves

Claim reserves represent the estimated accrued liability for claims reported to the Company and claims incurred but not yet reported through the balance sheet date. These reserves are estimated using either individual case-basis valuations or statistical analysis techniques. These estimates are subject to the effects of trends in claim severity and frequency. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes available.

28

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

Liability for Deposit-Type Contracts

Deposit-type contracts do not incorporate risk from the death or disability of policyholders. These types of contracts may include GICs, funding agreements and other annuity contracts. Deposits and withdrawals on these contracts are recorded as a direct increase or decrease, respectively, to the liability balance and are not reported as premiums, benefits or changes in reserves in the statement of operations.

The Company issues certain funding agreements with well-defined class-based annuity purchase rates defining either specific or maximum purchase rate guarantees. However, these funding agreements are not issued to or for the benefit of an identifiable individual or group of individuals. These contracts are classified as deposit-type contracts in accordance with SSAP No. 50.

Municipal Reverse Repurchase Agreements

Municipal repurchase agreements are investment contracts issued to municipalities that pay either a fixed or floating rate of interest on the guaranteed deposit balance. The floating interest rate is based on a market index. The related liabilities are equal to the policyholder deposit and accumulated interest on the contract.

The Company enters into municipal repurchase agreements for which it requires a minimum of 95% of the fair value of the securities transferred to be maintained as collateral.

Premiums and Annuity Considerations

Revenues for policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received and are recognized over the premium paying periods of the related policies. Consideration received and benefits paid for annuity policies without mortality or morbidity risk are recorded using deposit accounting and recorded directly to an appropriate policy reserve account, without recognizing premium revenue.

29

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

Claims and Claim Adjustment Expense

Liabilities for losses and loss/claim adjustment expenses for accident and health contracts are estimated using statistical claim development models to develop best estimates of liabilities for medical expense business and using tabular reserves employing mortality/morbidity tables and discount rates meeting minimum regulatory requirements for other business. The balance in the liability for unpaid accident and health claim adjustment expenses as of December 31, 2010 and 2009 was $25,247 and $23,029, respectively.

The Company incurred $12,350 and paid $10,131 of claim adjustment expenses during 2010, of which $6,838 of the paid amount was attributable to insured or covered events of prior years. The Company incurred $11,227 and paid $10,397 of claim adjustment expenses during 2009, of which $6,727 of the paid amount was attributable to insured or covered events of prior years. The Company did not increase or decrease the provision for insured events of prior years during 2010 or 2009.

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 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. Policy liabilities and accruals are reported in the accompanying financial statements net of reinsurance ceded.

Stock Option Plan, Long-Term Incentive Compensation and Stock Appreciation Rights Plans

Prior to 2002 and in 2005 through 2008, 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 fair value of the stock. Under statutory accounting principles, the Company does not record any expense related to this plan. No stock options were issued during 2010 or 2009.

30

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

The Company’s employees participate in various stock appreciation rights (SAR) plans issued by the Company’s indirect parent. In accordance with 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. No benefit or expense relating to these plans was recorded by the Company for the year ended December 31, 2010. The Company recorded a benefit of $214 and $14,618 for the years ended December 31, 2009 and 2008, 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 $75 for the year ended December 31, 2008. The Company did not record an adjustment to paid-in surplus for the income tax effect related to these plans for the years ended December 31, 2010 or 2009.

Certain management employees of the Company participate in a stock-based long-term incentive compensation plan issued by the Company’s indirect parent. In accordance with SSAP No. 13, the expense or benefit related to this plan for the Company’s management employees has been charged to the Company, with an offsetting amount credited to paid-in surplus. The Company recorded an accrued expense in the amount of $3,205 for the year ended December 31, 2010. The Company did not record an accrued expense related to stock-based long-term incentive compensation for the years ended December 31, 2009 or 2008.

Recent Accounting Pronouncements

Effective December 31, 2010, the Company adopted modifications made to SSAP No. 91R, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities. As a result of these modifications, for securities lending programs, collateral received by the Company’s agent that can be sold or re-pledged is reported on the balance sheet. Collateral received and reinvestment of that collateral by the Company are reflected as a one-line entry on the balance sheet (securities lending reinvested collateral assets). A separate liability is also established to record the obligation to return the cash collateral (payable for securities lending). This change in accounting principle increased assets and liabilities by $3,956,880 with no impact to surplus. See Note 10 for further details.

31

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

In addition, the amendments to SSAP No. 91R resulted in cash collateral received from counterparties to derivatives contracts also being reported on the Company’s balance sheet in the respective asset class in which the cash was reinvested (short-term investments and bonds). A separate liability was established to record the obligation to return the cash collateral (Payable for derivative cash collateral). These balances were recorded on the Company’s balance sheet effective January 1, 2010 and resulted in an increase to assets of $220,439, an increase to liabilities of $215,069 and a net increase to surplus of $5,370. The net increase to surplus is comprised of $6,403 of accumulated earnings offset by unrealized losses associated with securities that were reported at lower of cost or market at the time of adoption of $1,033.

Effective December 31, 2010, the Company adopted SSAP No. 100, Fair Value Measurements, including recent modifications and clarifications made to the standard. This statement defines fair value, establishes a framework for measuring fair value and establishes disclosure requirements about fair value, and it applies under other statutory accounting pronouncements that require or permit fair value measurements. The adoption of this new accounting principle had no impact to the Company’s results of operations or financial position. See Note 4 for further details.

During 2010, revisions were adopted to certain paragraphs of SSAP No. 43R, Loan-backed and Structured Securities to clarify the accounting for gains and losses between AVR and IMR. The revisions clarify that an AVR / IMR bifurcation analysis should be performed when SSAP No. 43R securities are sold (not just as a result of impairment). These changes have an effective date of January 1, 2011 and are to be applied on a prospective basis.

During 2010, revisions were made to SSAP No. 43R to clarify the definitions of loan-backed and structured securities. The revised definitions will most likely result in more securities being accounted for under SSAP No. 43R. Companies are to prospectively apply the clarified guidance effective January 1, 2011. The Company is in the process of determining the impact of these changes.

32

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

Effective September 30, 2009, the Company adopted SSAP No. 43R. This statement establishes statutory accounting principles for investments in loan-backed and structured securities. The SSAP supersedes SSAP No. 98, Treatment of Cash Flows When Quantifying Changes in Valuation and Impairments and paragraph 13 of SSAP No. 99, Accounting for Certain Securities Subsequent to an Other-Than-Temporary Impairment. SSAP No. 43R changes the accounting for other-than-temporary impairments (OTTI). If the Company intends to sell a security or lacks the intent or ability to hold the security until it recovers to its amortized cost basis, the security shall be written down to its fair value. If the Company does not expect to recover the entire amortized cost basis of a security, an OTTI shall be recognized as a realized loss equal to the difference between the security’s amortized cost basis and the present value of cash flows expected to be collected, discounted at the effective interest rate as outlined in the SSAP. Prior to the adoption of SSAP No. 43R, loan-backed and structured securities were accounted for in accordance with SSAP No. 43, which called for those securities to be impaired and written down using undiscounted cash flows. The cumulative effect of the adoption of this standard is the difference between the present value of expected cash flows for securities identified as having an OTTI compared with their amortized cost basis as of July 1, 2009. This change in accounting principle reduced surplus by a net amount of $14,934 ($9,707 net of tax), which includes impairments of $40,973 offset by NAIC 6 rated securities that were already reported at lower of cost or market at the time of the implementation of SSAP No. 43R of $26,039, which have been removed from the component of change in net unrealized gains/losses.

33

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

Effective December 31, 2009, the Company began computing deferred income taxes in accordance with SSAP No. 10R. This statement establishes statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. This statement temporarily replaces SSAP No. 10, Income Taxes. Under SSAP No. 10R, gross deferred tax assets (DTAs) shall be admitted in an amount equal to 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 and the lesser of the amount of adjusted gross DTAs, 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 system software and any net positive goodwill that can be offset against existing gross deferred income tax liabilities (DTLs) after considering the character. If the Company’s risk-based capital level (RBC) is above 250% where an action level could occur as a result of a trend test, the Company may elect to admit a higher amount of adjusted gross DTAs. When elected, additional DTAs are admitted for taxes paid in prior years that can be recovered through loss carryback provisions for existing temporary differences that reverse within three years of the balance sheet date and the lesser of the remaining gross DTAs expected to be realized within three years of the balance sheet date or 15% of capital and surplus excluding any net deferred income tax assets, electronic data processing equipment and operating software and any positive net goodwill plus the amount of remaining gross DTAs that can be offset against gross DTLs after considering the character (i.e., ordinary versus capital) of the DTAs and DTLs. Prior to the adoption of SSAP No. 10R, the Company obtained permission from the state of Iowa to compute deferred income taxes using a permitted practice. At December 31, 2009, the Company elected to admit additional deferred tax assets pursuant to SSAP No. 10R. The cumulative effect of the election of this statement is the difference between the calculation of the admitted DTA per SSAP No. 10R and the SSAP No. 10 methodology at December 31, 2009 as the use of the permitted practice expired as of December 15, 2009. As a result of this election, surplus increased by a cumulative effect of $554,923 and $295,260 at December 31, 2010 and 2009, respectively, which has been reflected as an aggregate write-in for other than special surplus funds on the 2010 and 2009 financial statements.

Effective December 31, 2009 the Company adopted amendments to SSAP No. 9, Subsequent Events, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. The guidance requires the disclosure of the date through which an entity has evaluated subsequent events and whether that date represents the date the financial statements were issued or were available to be issued. The adoption did not impact the Company’s results of operations or financial position. See Note 16 for further discussion of the Company’s consideration of subsequent events.

34

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

1. Organization and Summary of Significant Accounting Policies (continued)

In September 2008, the NAIC issued SSAP No. 99, Accounting for Certain Securities Subsequent to an Other-Than-Temporary Impairment. This statement establishes the statutory accounting principles for the treatment of premium or discount applicable to certain securities subsequent to the recognition of an OTTI. Prior to SSAP No. 99, the Company’s previously impaired investments were reported in accordance with SSAP No. 26, Bonds, excluding Loan-backed and Structured Securities, SSAP No. 32, Investments in Preferred Stock and SSAP No. 43, Loan-backed and Structured Securities. The Company adopted SSAP No. 99 on January 1, 2009. The adoption of this statement was accounted for prospectively and therefore there was no impact to the Company’s financial statements at adoption.

Reclassifications

Certain reclassifications have been made to the 2009 and 2008 financial statements to conform to the 2010 presentation.

2. Prescribed and Permitted Statutory Accounting Practices

The Insurance Division, Department of Commerce, of the State of Iowa recognizes only statutory accounting practices prescribed or permitted by the State of Iowa for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under the Iowa Insurance Law.

The NAIC SAP has been adopted as a component of prescribed or permitted practices by the State of Iowa. The State of Iowa has adopted a prescribed accounting practice that differs from that found in the NAIC SAP related to reserve credits and secondary guarantee reinsurance treaties. As prescribed by Iowa Administrative Code 191-17.3(2), the Commissioner found that the Company is entitled to take reserve credit for such a reinsurance contract in the amount equal to the portion of total reserves attributable to the secondary guarantee, whereas this type of reinsurance does not meet the specific requirements of SSAP No. 61, Life, Deposit-Type and Accident and Health Reinsurance and Appendix A-791 of the NAIC SAP.

The Company, with the permission of the Commissioner of Insurance of the State of Iowa, records the value of its wholly owned foreign life insurance subsidiary, Transamerica Life (Bermuda), Ltd. (TLB), based upon audited statutory equity rather than audited U.S. GAAP equity adjusted to a statutory basis of accounting, utilizing adjustments as outlined in SSAP No. 97 – Investments in Subsidiary, Controlled and Affiliated Entities, a replacement of SSAP No. 88, paragraph 9.

35

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

2. Prescribed and Permitted Statutory Accounting Practices (continued)

At December 31, 2008, the Company received written approval from the Iowa Insurance Division to determine the admitted amount of deferred income tax assets pursuant to Iowa Bulletin 09-01. Bulletin 09-01 increased the realization period for purposes of determining the admissibility of deferred tax assets in accordance with the requirements of SSAP No. 10, Paragraph 10(b)(i) from one year to three years from the balance sheet date and expanded the limit on net deferred tax assets for Paragraph 10(b)(ii) from 10% of adjusted capital and surplus to 15%. The Company did not utilize this permitted practice during 2010 or 2009 and instead opted to calculate deferred income taxes using the provisions of SSAP No. 10R.

The State of Iowa has adopted a prescribed accounting practice that differs from that found in the NAIC SAP related to the reported value of the assets supporting the Company’s guaranteed separate accounts. As prescribed by Iowa Administrative Code 508A.1.4, the Commissioner found that the Company is entitled to value the assets of the guaranteed separate account at amortized cost, whereas the assets would be required to be reported at fair value under SSAP No. 56, Separate Accounts, of the NAIC SAP. There is no impact to the Company’s income or surplus as a result of utilizing this prescribed practice.

A reconciliation of the Company’s net income and capital and surplus between NAIC SAP and practices prescribed and permitted by the State of Iowa is shown below:

	2010			2009			2008
							Restated
Net income (loss), State of Iowa basis	$	417,679		$	(6,425	)	$	(621,418	)
State prescribed practice for secondary guarantee reinsurance		—			—			—
State permitted practice for valuation of foreign life subsidiary		—			—			—
Net income (loss), NAIC SAP	$	417,679		$	(6,425	)	$	(621,418	)
Statutory surplus, State of Iowa basis	$	4,298,124		$	5,026,825		$	4,840,134
State prescribed practice for secondary guarantee reinsurance		(2,926,627	)		(2,593,154	)		(2,349,638	)
State permitted practice for valuation of wholly-owned foreign life subsidiary		19,656			(20,745	)		(124,668	)
State permitted practice for deferred tax asset		—			—			(380,358	)
Statutory surplus, NAIC SAP	$	1,391,153		$	2,412,926		$	1,985,470

36

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

3. Accounting Changes and Correction of Errors

During 2009, the Company corrected the financial statement presentation of the preferred treasury stock. On December 19, 2007, the Company repurchased 57,340 shares of its Series B preferred shares for $573,400. The par value of the Series B preferred shares is $10 per share and the liquidation value is also $10 per share. At December 31, 2007, the financial statement of the Company appropriately presented the $573,400 as preferred treasury stock. Due to the merger of LIICA and TOLIC into the Company on October 2, and October 1, 2008, respectively, Transamerica Corporation was issued 86,590 shares of Series B preferred stock. Rather than reflecting the Series B preferred stock issued as first a reduction of treasury stock, with the remaining shares issued to TA Corp presented as additional shares issued and outstanding, the Company incorrectly presented the entire amount of the 86,590 shares issued to TA Corp as newly issued and outstanding shares. During 2009, the Company corrected the presentation of the Series B preferred shares, which resulted in a reduction of $573,400 to treasury stock and a reduction in the preferred capital stock line of $573, with an offset to gross paid-in capital. There was no net surplus impact to the Company due to this correction.

The Company entered into an agreement with an affiliated entity in which certain mortgage loans and real estate were sold with an effective date of December 31, 2008. The sales of these mortgage loans and real estate were not reflected in the December 31, 2008 financial statements. As a result, the Company has reflected such sales in the December 31, 2009 financial statements and has identified the surplus impact of such corrections as a separate change in capital and surplus within the statement of operations for 2009. Had these sales been appropriately recognized within the December 31, 2008 financials, the AVR balance would have been $6,275 lower and the sales would have increased the Company’s net loss by $7,173, for a net negative surplus impact of $898.

During 2008, the Company obtained approval from the Insurance Division, Department of Commerce, of the State of Iowa to calculate the reserves related to synthetic guaranteed investment contracts (synthetic GICs) utilizing a discount rate corresponding to the corporate bond AA credit curve, versus 105% of the Treasury spot-rate curve, which was utilized in previous years. The difference in the reserves held under the reserve methodology utilized at December 31, 2008 versus previous years’ methodology is a decrease in reserves of approximately $89,002. This approval is still effective, however, as of December 31, 2009, the Company resumed the higher reserve standard of utilizing the discount rate of 105% of the Treasury spot-rate curve to calculate its reserves related to its outstanding synthetic GIC contracts. The same method is utilized as of December 31, 2010. Only one contract had a non-zero reserve. Contractually the liability is limited to $3,000, and this is the reserve held by the Company at December 31, 2010 and 2009.

37

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

4. 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 accompanying balance sheets for these financial instruments approximate their fair values.

Bonds and Stocks: The NAIC allows insurance companies to report the fair value determined by the SVO or to determine the fair value by using a permitted valuation method. The fair values of bonds and stocks are reported or determined using the following pricing sources: indexes, third party pricing services, brokers, external fund managers and internal models.

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, estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments.

Short-Term Notes Receivable from Affiliates: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair value.

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: The fair value of policy loans is assumed to equal their carrying amount.

Securities Lending Reinvested Collateral: The cash collateral from securities lending is reinvested in various short-term and long-term debt instruments. The fair values of these investments are determined using the methods described above under Cash, Cash Equivalents and Short-Term Investments and Bonds and Stocks.

Other Invested Assets: The fair values for other invested assets, which include investments in surplus notes issued by other insurance companies and fixed or variable rate investments with underlying characteristics of bonds were determined primarily by using indexes, third party pricing services, and internal models.

38

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

4. Fair Values of Financial Instruments (continued)

Derivative Financial Instruments: The estimated fair values of interest rate caps and options are based upon the latest quoted market price at the balance sheet date. The estimated fair values of swaps, including interest rate and currency swaps, are based on pricing models or formulas using current assumptions.

Credit Default Swaps: The estimated fair value of credit default swaps are based upon the pricing differential as of the balance sheet date for similar swap agreements.

Investment Contract Liabilities: Fair values for the Company’s liabilities under investment contracts, which include GICs and funding agreements, 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. For investment contracts with no defined maturity, fair value is estimated to be the present surrender value.

Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying balance sheets approximate their fair values.

Separate Account Assets and Annuity Liabilities: The fair value of separate account assets are based on quoted market prices. The fair value of separate account annuity liabilities approximate the fair value of the separate account assets less a provision for the present value of future profits related to the underlying contracts.

Surplus Notes: Fair values for surplus notes are estimated using a discounted cash flow analysis based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements.

Receivable From/Payable to Parents, Subsidiaries and Affiliates: The carrying value of receivable from/payable to affiliates approximates their fair value.

Fair values for the Company’s insurance contracts other than investment-type contracts (including separate account universal life liabilities) are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.

39

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

4. 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
	2010				2009
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Admitted assets
Cash, cash equivalents and short-term investments, other than affiliates	$	1,303,081	$	1,303,081	$	3,032,109	$	3,032,109
Short-term notes receivable from affiliates		270,000		270,000		880,200		880,200
Bonds, other than affiliates		46,921,343		46,976,603		47,035,463		45,386,770
Preferred stocks, other than affiliates		123,925		121,878		152,661		144,696
Common stocks, other than affiliates		358,631		358,631		389,485		389,485
Mortgage loans on real estate, other than affiliates		8,027,115		8,325,341		9,275,690		8,935,978
Other invested assets		181,095		177,761		175,168		164,109
Floors, options and swaptions		1,462		1,462		3,661		3,111
FDAs		61		61		299		126
Interest rate caps		2		2		37		—
Interest rate swaps		93,365		738,331		92,254		541,568
Currency swaps		7,425		75,889		8,130		109,956
Credit default swaps		4,687		6,402		369		2,141
Foreign currency forward		123		123		954		954
Policy loans		746,677		746,677		759,957		759,957
Securities lending reinvested collateral		3,956,880		3,954,149		—		—
Receivable from parent, subsidiaries and affiliates		248,839		248,839		187,751		187,751
Separate account assets		38,370,952		38,370,952		33,205,532		33,205,532
Liabilities
Investment contract liabilities		19,741,412		20,176,069		23,563,017		23,599,026
Floors, options and swaptions		462		462		550		—
FDAs		7,990		7,990		5,237		5,064
Interest rate caps		1		—		37		—
Interest rate swaps		82,389		398,272		158,871		528,815
Currency swaps		118,187		138,305		187,912		219,697
Credit default swaps		11,988		10,000		5,047		5,179
Foreign currency forward		154		154		79		79
Payable to parent, subsidiaries and affiliates		476,976		476,976		270,421		270,421
Separate account annuity liabilities		30,301,261		30,299,758		24,918,494		24,912,008
Surplus notes		150,000		151,932		150,000		144,191

40

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

4. Fair Values of Financial Instruments (continued)

The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair values are based on quoted market prices when available. When market prices are not available, fair value is generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality (matrix pricing). In instances where there is little or no market activity for the same or similar instruments, the Company estimates fair value using methods, models and assumptions that management believes market participants would use to determine a current transaction price. These valuation techniques involve some level of management estimation and judgment which becomes significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk inherent in a particular methodology, model or input employed.

The Company’s financial assets and liabilities carried at fair value are classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:

Level 1 -	Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.
Level 2 -	Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:

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

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

c) Inputs other than quoted market prices that are observable

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

41

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

4. Fair Values of Financial Instruments (continued)

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

The Company accounts for its investments in affiliated common stock using the equity method of accounting; as such, they are not included in the following disclosures as they are not carried at fair value on the balance sheet.

Fair Value Measurements

During 2010, amendments were made to SSAP No. 100 to eliminate the requirement to differentiate and report fair value measurements on separate recurring and non-recurring schedules. Instead, for December 31, 2010, all fair value measurements will be reported on a single schedule by class. The 2009 schedules were not required to be restated.

42

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

4. Fair Values of Financial Instruments (continued)

The following table provides information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2010:

	2010
	Level 1		Level 2		Level 3		Total
Assets:
Bonds
Industrial and miscellaneous	$	—	$	143,201	$	59,357	$	202,558
Hybrid securities		—		7,069		—		7,069
Total bonds		—		150,270		59,357		209,627
Preferred stock
Industrial and miscellaneous		—		—		1,236		1,236
Total preferred stock		—		—		1,236		1,236
Common stock
Mutual funds		40,951		68		—		41,019
Industrial and miscellaneous		90,568		160		226,884		317,612
Total common stock		131,518		228		226,884		358,631
Short-term investments
Government		—		65,069		—		65,069
Industrial and miscellaneous		—		768,270		—		768,270
Mutual funds		—		465,525		—		465,525
Sweep accounts		—		64,484		—		64,484
Total Short-term investments		—		1,363,348		—		1,363,348
Derivative assets		—		3,469		—		3,469
Separate account assets		31,597,665		5,398,091		793,212		37,788,968
Total assets	$	31,729,183	$	6,915,406	$	1,080,689	$	39,725,279
Liabilities:
Derivative liabilities	$	—	$	24,705	$	4,600	$	29,305
Separate account liabilities		7,302		5,405		—		12,707
Total liabilities	$	7,302	$	30,110	$	4,600	$	42,012

Bonds classified in Level 2 are valued using inputs from third party pricing services or corroborated broker quotes. Level 3 measurements for bonds are primarily those valued using non-corroborated broker quotes or internal modeling.

43

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

4. Fair Values of Financial Instruments (continued)

Common Stock in Level 3 is comprised primarily of shares in the Federal Home Loan Bank (FHLB) of Des Moines, which are valued at par as a proxy for fair value as they can only be redeemed by the bank. In addition, the Company owns some warrants that are valued using non-corroborated broker quotes.

Short-term investments are classified as Level 2 as they are carried at amortized cost, which approximates fair value.

For derivatives, those classified as Level 2 represent over-the-counter (OTC) contracts valued using pricing models based on the net present value of estimated future cash flows, directly observed prices from exchange-traded derivatives, other OTC trades, or external pricing services. The Level 3 derivative liability is a credit swap calculated by simulation using a series of market-consistent inputs to model the dynamics of the swap. The inputs are taken from market instruments to the extent that they exist.

The following table summarizes the changes in assets and liabilities classified in Level 3 for 2010:

	Balance at January 1, 2010		Transfers into Level 3		Transfers out of Level 3		Total Gains and (Losses) Included in Net income			Total Gains and (Losses) Included in Surplus			Purchases ,Issuances, Sales and Settlements			Balance at December  31, 2010
Bonds
RMBS	$	19,291	$	30,955	$	5,802	$	(21,711	)	$	14,201		$	14,785		$	51,719
Other		144,501		10,365		60,223		(7,297	)		(1,407	)		(78,301	)		7,638
Preferred Stock		6,162		1,236		6,162		—			(36	)		36			1,236
Common Stock		278,111		4,251		—		5,664			1,663			(62,805	)		226,884
Other Long Term		32,660		—		—		130			27			(32,817	)		—
Derivative Liabilities		—		—		—		—			—			(4,600	)		(4,600	)
Separate account assets		936,012		—		4,382		(102,331	)		273			(36,360	)		793,212
Total	$	1,416,737	$	46,807	$	76,569	$	(125,545	)	$	14,721		$	(200,062	)	$	1,076,089

The Company’s policy is to recognize transfers in and out of Level 3 as of the beginning of the reporting period.

Transfers in for bonds were the result of securities not carried at fair value as of December 31, 2009 subsequently changing to being carried at fair value as of December 31, 2010. Such changes were the result of a change in NAIC rating and impairment. In addition, several securities were valued using third party vendor inputs at December 31, 2009 and changed at December 31, 2010 to being valued using non-corroborated broker quotes, thus causing the transfer into Level 3.

44

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

4. Fair Values of Financial Instruments (continued)

Transfers out for bonds were attributable to securities being carried at fair value as of December 31, 2009, subsequently changing to being carried at amortized cost as of December 31, 2010. Such changes were the result of a change in NAIC rating and impairment. In addition, there were some securities that were valued using internal modeling at December 31, 2009. Those securities were valued using third party vendor inputs at December 31, 2010.

Transfers in for preferred stock were the result of securities not carried at fair value as of December 31, 2009 subsequently changing to being carried at fair value as of December 31, 2010. Such changes were the result of a change in the price source, change in NAIC rating and impairment.

Transfers out for preferred stock were attributable to securities being carried at fair value as of December 31, 2009, subsequently changing to being carried at amortized cost as of December 31, 2010. Such changes were the result of a change in the price source, change in NAIC rating and impairment.

Transfers in for common stock were the result of warrants being valued using third party vendor inputs at December 31, 2009. The valuation of those warrants changed at December 31, 2010 to using non-corroborated broker quotes.

Transfers out for separate account assets were attributable to bonds being valued using non-corroborated broker quotes at December 31, 2009, subsequently changing to being valued using third party vendor inputs at December 31, 2010.

45

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

4. Fair Values of Financial Instruments (continued)

The following table provides information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2009:

	2009
	Level 1		Level 2		Level 3		Total
Assets:
Equity securities	$	103,871	$	7,503	$	278,111	$	389,485
Other invested assets		—		—		32,660		32,660
Short-term investments		—		3,064,145		—		3,064,145
Derivative assets		—		13,462		—		13,462
Separate account assets		22,215,160		9,313,341		936,012		32,464,513
Total assets	$	22,319,031	$	12,398,451	$	1,246,783	$	35,964,265
Liabilities:
Derivative liabilities	$	—	$	64,812	$	—	$	64,812
Total liabilities	$	—	$	64,812	$	—	$	64,812

Fair Value Measurements in Level 3 of the Fair Value Hierarchy

The following table summarizes the changes in assets and liabilities classified in Level 3 for 2009:

	Equity Securities			Short-term Investments			Other Invested Assets			Separate Account Assets			Total
Balance at January 1, 2009	$	295,552		$	42,444		$	—		$	—		$	337,996
Change in realized gains/losses included in net income		(6,155	)		—			—			(80,693	)		(86,848	)
Change in unrealized gains/losses included in surplus		5,177			284			(27	)		—			5,434
Net purchases (sales)		(28,878	)		(42,728	)		32,687			(229,258	)		(268,177	)
Net transfers in to Level 3		12,415			—			—			1,245,963			1,258,378
Balance at December 31, 2009	$	278,111		$	—		$	32,660		$	936,012		$	1,246,783
Total gains/losses included in income attributable to instruments held at the reporting date	$	(2,156	)	$	—		$	—		$	—		$	(2,156	)

46

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

4. Fair Values of Financial Instruments (continued)

Assets measured at fair value on a non-recurring basis

For the year ended December 31, 2009, the Company reported certain assets and liabilities at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The Company reported the following financial instruments at fair value on a non-recurring basis:

Description	December 31, 2009		Level 1		Level 2		Level 3		Total Gains (Losses)
Fixed maturities	$	290,192	$	–	$	120,238	$	169,954	$	(104,050	)
Derivative liabilities		26,899		–		26,899		–		–

5. Investments

The carrying amounts and estimated fair value of investments in bonds and preferred stock are as follows:

	Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses 12 Months or More		Gross Unrealized Losses less Than 12 Months		Estimated Fair Value
December 31, 2010
Unaffiliated bonds:
United States Government and agencies	$	3,160,171	$	77,718	$	4,518	$	75,826	$	3,157,545
State, municipal and other government		836,397		49,894		19,517		6,180		860,594
Hybrid securities		1,557,055		17,968		226,807		1,009		1,347,207
Industrial and miscellaneous		27,657,173		1,553,520		106,995		230,233		28,873,465
Mortgage and other asset-backed securities		13,710,547		296,594		1,227,663		41,686		12,737,792
		46,921,343		1,995,694		1,585,500		354,934		46,976,603
Unaffiliated preferred stocks		123,925		9,783		10,723		1,107		121,878
	$	47,045,268	$	2,005,477	$	1,596,223	$	356,041	$	47,098,481

47

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. 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, 2009
Unaffiliated bonds:
United States Government and agencies	$	2,213,602	$	46,272	$	10,359	$	57,837	$	2,191,678
State, municipal and other government		864,106		58,075		36,447		6,506		879,228
Hybrid securities		1,777,764		15,566		322,069		421		1,470,840
Industrial and miscellaneous		27,005,598		1,585,453		377,181		61,228		28,152,642
Mortgage and other asset-backed securities		15,174,393		165,590		2,537,314		110,287		12,692,382
		47,035,463		1,870,956		3,283,370		236,279		45,386,770
Unaffiliated preferred stocks		152,661		13,428		13,976		7,417		144,696
	$	47,188,124	$	1,884,384	$	3,297,346	$	243,696	$	45,531,466

At December 31, 2010 and 2009, respectively, for bonds and preferred stocks that have been in a continuous loss position for greater than or equal to twelve months, the Company held 784 and 1,417 securities with a carrying amount of $9,237,482 and $15,724,863 and an unrealized loss of $1,596,223 and $3,297,346 with an average price of 82.7 and 79.0 (fair value/amortized cost). Of this portfolio, 67.8% and 73.4% were investment grade with associated unrealized losses of $750,760 and $1,964,692, respectively.

At December 31, 2010 and 2009, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 1,224 and 527 securities with a carrying amount of $10,099,730 and $5,312,143 and an unrealized loss of $356,041 and $243,696 with an average price of 96.5 and 95.4 (fair value/amortized cost). Of this portfolio, 97.3% and 96.3% were investment grade with associated unrealized losses of $345,226 and $209,917, respectively.

At December 31, 2010 and 2009, respectively, for common stocks that have been in a continuous loss position for greater than or equal to twelve months, the Company held 2 and 5 securities with a cost of $15 and $35 and an unrealized loss of $9 and $17 with an average price of 38.2 and 52.5 (fair value/cost).

At December 31, 2010 and 2009, respectively, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 25 and 35 securities with a cost of $23,086 and $41,570 and an unrealized loss of $1,002 and $1,112 with an average price of 95.7 and 97.3 (fair value/cost).

48

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2010 and 2009 is as follows:

	Losses 12 Months or More		Losses Less Than 12 Months		Total
December 31, 2010
Unaffiliated bonds:
United States Government and agencies	$	237,897	$	1,386,362	$	1,624,259
State, municipal and other government		97,950		169,282		267,232
Hybrid securities		1,043,259		37,791		1,081,050
Industrial and miscellaneous		1,036,864		6,796,934		7,833,798
Mortgage and other asset-backed securities		5,180,283		1,342,227		6,522,510
		7,596,253		9,732,596		17,328,849
Unaffiliated preferred stocks		45,006		11,093		56,099
Unaffiliated common stocks		6		22,084		22,090
	$	7,641,265	$	9,765,773	$	17,407,038

	Losses 12 Months or More		Losses Less Than 12 Months		Total
December 31, 2009
Unaffiliated bonds:
United States Government and agencies	$	361,036	$	952,444	$	1,313,480
State, municipal and other government		170,904		121,643		292,547
Hybrid securities		1,297,347		15,671		1,313,018
Industrial and miscellaneous		3,594,291		2,417,578		6,011,869
Mortgage and other asset-backed securities		6,956,857		1,539,597		8,496,454
		12,380,435		5,046,933		17,427,368
Unaffiliated preferred stocks		47,082		21,515		68,597
Unaffiliated common stocks		18		40,458		40,476
	$	12,427,535	$	5,108,906	$	17,536,441

49

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

The carrying amount and estimated fair value of bonds at December 31, 2010, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

	Carrying Amount		Estimated Fair Value
Due in one year or less	$	957,586	$	976,255
Due after one year through five years		9,687,493		10,172,757
Due after five years through ten years		9,031,523		9,436,666
Due after ten years		13,534,194		13,653,133
		33,210,796		34,238,811
Mortgage and other asset-backed securities		13,710,547		12,737,792
	$	46,921,343	$	46,976,603

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. Non-structured securities in unrealized loss positions that are considered other-than-temporary are written down to fair value. Structured securities considered other-than-temporarily impaired are written down to discounted estimated cash flows if the impairment is the result of cash flow analysis. If the Company has an intent to sell or lack of ability to hold a structured security, it is written down to fair value. 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; (2) the Company’s decision to sell a security prior to its maturity at an amount below its carrying amount; and (3) the Company’s ability to hold a structured security for a period of time to allow for recovery of the value to its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes are monitored. For structured securities, cash flow trends and underlying levels of collateral are monitored. The Company will record a charge to the statement of operations to the extent that these securities are subsequently determined to be other-than-temporarily impaired.

Banking

At December 31, 2010, the Company’s banking sector portfolio had investments in an unrealized loss position which had a fair value of $1,622,486 and a carrying value of $1,880,648, resulting in a gross unrealized loss of $258,162. The banking sub-sector in the Company’s portfolio is large, diverse and of high quality. The unrealized losses in the banking sub-sector primarily reflect the size of the Company’s holdings, low floating rate coupons on some securities and credit spread widening on deeply subordinated securities.

50

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

As a whole, the sub-sector has been volatile in 2010 as Sovereign debt crises in Greece and Ireland have reintroduced liquidity fears into the market and concern has grown that other peripheral European countries may need financial bail-out packages. Subordinated securities, specifically, have become even more volatile following successful attempts by the European Commission to impose “burden sharing” on the subordinated securities of those banks receiving significant state-aid as a result of the financial crisis. Furthermore, new legislation introduced in Germany and Ireland gives those respective governments wide discretion to impose “burden sharing” on subordinated bondholders in order to quickly stabilize or wind-up troubled banks, and other countries will likely follow suit. While these measures have made existing subordinated securities more volatile in the near-term, new, more stringent, global legislation on capital and liquidity requirements is intended to reduce overall risk in the sector going forward. Furthermore, Central Banks appear committed to providing liquidity to the market and as a result asset write-downs and credit losses have diminished substantially in all but the most troubled countries. The value of the Company’s investments in deeply subordinated securities in the financial services sector may be significantly impacted if issuers of certain securities with optional deferral features exercise the option to defer coupon payments or are required to defer as a condition of receiving government aid. The Company evaluated the near-term prospects of the issuers in relation to the severity and duration of the unrealized loss and does not consider those investments to be impaired as of December 31, 2010.

Subprime Mortgages

At December 31, 2010, the Company’s asset-backed securities (ABS) subprime mortgage portfolio had investments in an unrealized loss position which had a fair value of $806,127 and a carrying value of $1,014,495, resulting in a gross unrealized loss of $208,368. The Company does not currently invest in or originate whole loan residential mortgages. The Company categorizes asset backed securities issued by a securitization trust as having subprime mortgage exposure when the average credit score of the underlying mortgage borrowers in a securitization trust is below 660 at issuance. The Company also categorizes asset backed securities issued by a securitization trust with second lien mortgages as subprime mortgage exposure, even though a significant percentage of second lien mortgage borrowers may not necessarily have credit scores below 660 at issuance. The Company does not have any “direct” residential mortgages to subprime borrowers outside of the ABS structures.

51

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

All ABS subprime mortgage securities are monitored and reviewed on a monthly basis. Detailed cash flow models using the current collateral pool and capital structure on the portfolio are performed quarterly. Model output is generated under base and several stress-case scenarios. The Company’s internal ABS-housing asset specialists utilize widely recognized industry modeling software to perform a loan-by-loan, bottom-up approach to modeling. Key assumptions used in the models are projected defaults, loss severities and prepayments. Each of these key assumptions varies greatly based on the significantly diverse characteristics of the current collateral pool for each security. Loan-to-value, loan size and borrower credit history are some of the key characteristics used to determine the level of assumption that is utilized. Defaults were estimated by identifying the loans that are in various delinquency buckets and defaulting a certain percentage of them over the near-term and long-term. Assumed defaults on delinquent loans are dependent on the specific security’s collateral attributes and historical performance.

Loss severity assumptions were determined by observing historical rates from broader market data while being adjusted for specific pool performance, collateral type, mortgage insurance and estimated loan modifications. Prepayments were estimated by examining historical averages of prepayment activity on the underlying collateral. Once the entire pool is modeled, the results are closely analyzed by the Company’s internal asset specialist to determine whether or not a particular tranche or holding is at risk for not collecting all contractual cash flows taking into account the seniority, and other terms of the tranches held. If cash flow models indicate a credit event will impact future cash flows and the Company does not have the intent to sell the security and does have the intent and ability to hold the security, the security is impaired to discounted cash flows.

The unrealized loss is primarily due to decreased liquidity, increased credit spreads in the market, slower prepayments and increased expected losses on loans within the underlying pools. Expected losses within the underlying pools are generally higher than original expectations, primarily in certain later-vintage adjustable rate mortgage loan pools, which has led to some rating downgrades in these securities. As the remaining unrealized losses in the ABS subprime mortgage portfolio relate to holdings where the Company expects to receive full principal and interest, the Company does not consider the underlying investments to be impaired as of December 31, 2010.

52

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

Commercial Mortgage-Backed Securities (CMBS)

At December 31, 2010, the Company’s CMBS portfolio had investments in an unrealized loss position which had a fair value of $1,671,381 and a carrying value of $1,893,326, resulting in a gross unrealized loss of $221,945. CMBS are securitizations of underlying pools of mortgages on commercial real estate. The underlying mortgages have varying risk characteristics and are pooled together and sold in different rated tranches. The Company’s CMBS includes conduit, large loan, single borrower, franchise loan, agencies, small loan and commercial real estate collateralized debt obligations (CDOs).

CMBS are monitored and reviewed on a monthly basis. Detailed cash flow models using the current collateral pool and capital structure on the portfolio are performed quarterly. Model output is generated under base and several stress-case scenarios by the Company’s internal CMBS asset specialists. For conduit securities, a widely recognized industry modeling software is used to perform a loan-by-loan, bottom-up approach. For non-conduit securities, a CMBS asset specialist works closely with the Company’s real estate valuation group to determine underlying asset valuation and risk. Both methodologies incorporate external estimates on the property market, capital markets, property cash flows and loan structure. Results are then closely analyzed by the asset specialist to determine whether or not a principal or interest loss is expected to occur. If cash flow models indicate a credit event will impact future cash flows and the Company does not have the intent to sell the security and does have the intent and ability to hold the security, the security is impaired to discounted cash flows.

Over the past 24 months, the commercial real estate market experienced a deterioration in property level fundamentals, which has led to an increase in CMBS loan-level delinquencies. The introduction of the 20% and 30% credit enhanced classes within the 2005-2008 vintage deals provide some offset to these negative fundamentals. Despite advancements in the availability of financing for commercial real estate, as evidenced by the gradual reopening of the CMBS markets, the lending market remains limited as lenders continue to be more conservative with underwriting standards. Moreover, property transactions have increased but still remain low relative to historical standards. While liquidity has improved within the CMBS market, a broad re-pricing of risk has kept credit spreads across the subordinate CMBS tranches at wide levels. As the remaining unrealized losses in the CMBS portfolio relate to holdings where the company expects to receive full principal and interest, the Company does not consider the underlying investments to be impaired as of December 31, 2010.

53

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

Residential Mortgage-Backed Securities (RMBS) Sector

At December 31, 2010, the Company’s RMBS sector portfolio had investments in an unrealized loss position which had a fair value of $2,671,967, and a carrying value of $3,354,983, resulting in a gross unrealized loss of $683,016. RMBS are securitizations of underlying pools of non-commercial mortgages on real estate. The underlying residential mortgages have varying credit ratings and are pooled together and sold in tranches. The Company’s RMBS portfolio includes collateralized mortgage obligations (CMOs), government sponsored enterprise (GSE) guaranteed passthroughs, prime jumbo passthroughs, Alt-A RMBS, negative amortization RMBS and reverse mortgage RMBS.

All RMBS of the Company are monitored and reviewed on a monthly basis. Detailed cash flow models using the current collateral pool and capital structure on the portfolio are performed quarterly. Model output is generated under base and several stress-case scenarios. The Company’s internal RMBS asset specialists utilize widely recognized industry modeling software to perform a loan-by-loan, bottom-up approach to modeling. Key assumptions used in the models are projected defaults, loss severities and prepayments.

Each of these key assumptions varies greatly based on the significantly diverse characteristics of the current collateral pool for each security. Loan-to-value, loan size and borrower credit history are some of the key characteristics used to determine the level of assumption that is utilized. Defaults were estimated by identifying the loans that are in various delinquency buckets and defaulting a certain percentage of them over the near-term and long-term. Assumed defaults on delinquent loans are dependent on the specific security’s collateral attributes and historical performance.

Loss severity assumptions were determined by obtaining historical rates from broader market data and by adjusting those rates for vintage, specific pool performance, collateral type, mortgage insurance and estimated loan modifications. Prepayments were estimated by examining historical averages of prepayment activity on the underlying collateral. Once the entire pool is modeled, the results are closely analyzed by the Company’s internal asset specialists to determine whether or not a particular tranche or holding is at risk for not collecting all contractual cash flows, taking into account the seniority and other terms of the tranches held. If cash flow models indicate a credit event will impact future cash flows and the Company does not have the intent to sell the security and does have the intent and ability to hold the security, the security is impaired to discounted cash flows.

54

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

The pace of deterioration in the housing market began to stabilize in late 2009 and continued in 2010. Even with the stabilization, fundamentals in RMBS continue to be weak, which impacts the magnitude of the unrealized loss. Delinquencies and severities in property liquidations remain at an elevated level, while prepayments remain at historically low levels. Due to the weak fundamental situation, reduced liquidity and the requirement for higher yields due to market uncertainty, credit spreads remain elevated across the asset class. In addition, a high percentage of the Company’s RMBS portfolio is comprised of floating rate securities, which has resulted in higher unrealized losses relative to fixed rate securities but not necessarily higher default losses. As the remaining unrealized losses in the RMBS portfolio relate to holdings where the Company expects to receive full principal and interest, the Company does not consider the underlying investments to be impaired as of December 31, 2010.

The following tables provide the aggregate totals for loan-backed securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold, in which the security is written down to fair value.

	Amortized  Cost Basis Before OTTI		OTTI Recognized in Loss
			Interest		Non-interest		Fair Value
Year Ended December 31, 2010
OTTI recognized 1st quarter:
Intent to sell	$	4,379	$	973	$	—	$	3,406
Total 1st quarter OTTI on loan-backed securities		4,379		973		—		3,406
OTTI recognized 2nd quarter:
Intent to sell		17,316		301		—		17,015
Inability or lack of intent to retain the investment in the security for a period of time sufficient to recover the amortized cost basis		6		—		6		0
Total 2nd quarter OTTI on loan-backed securities		17,322		301		6		17,015
Aggregate total	$	21,701	$	1,274	$	6	$	20,421

55

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

	Amortized  Cost Basis Before OTTI		OTTI Recognized in Loss
			Interest		Non-interest		Fair Value
Year Ended December 31, 2009
OTTI recognized 3rd quarter:
Intent to sell	$	21,033	$	—	$	5,508	$	15,525
Total 3rd quarter OTTI on loan-backed securities		21,033		—		5,508		15,525
OTTI recognized 4th quarter:
Intent to sell		179,064		—		66,154		112,910
Total 4th quarter OTTI on loan-backed securities		179,064		—		66,154		112,910
Aggregate total	$	200,097	$	—	$	71,662	$	128,435

The following tables provide the aggregate totals for loan-backed securities with a recognized OTTI due to the Company’s cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield.

	Amortized Cost before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year ended December 31, 2010
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	578,055	$	55,253	$	522,802	$	330,810
2nd quarter present value of cash flows expected to be less than the amortized cost basis		343,146		24,294		318,852		217,741
3rd quarter present value of cash flows expected to be less than the amortized cost basis		648,299		44,545		603,754		489,879
4th quarter present value of cash flows expected to be less than the amortized cost basis		744,823		29,278		715,545		563,667
Aggregate total	$	2,314,323	$	153,370	$	2,160,953	$	1,602,097

56

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

	Amortized Cost before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year ended December 31, 2009
3rd quarter present value of cash flows expected to be less than the amortized cost basis	$	320,333	$	27,156	$	293,177	$	153,730
4th quarter present value of cash flows expected to be less than the amortized cost basis		622,868		89,717		533,151		253,458
Aggregate total	$	943,201	$	116,873	$	826,328	$	407,188

57

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

The following loan-backed and structured securities were held at December 31, 2010, for which an OTTI had been previously recognized:

CUSIP	Amortized Cost Before Current Period OTTI		Present Value of Projected Cash Flows		Recognized OTTI		Amortized Cost After OTTI		Fair Value at Time  of OTTI		Quarter in which Impairment Occurred
000759BP4	$	788	$	785	$	3	$	785	$	625	1Q 2010
02148AAA4		51,172		50,652		520		50,652		33,152	1Q 2010
02148YAJ3		8,309		8,128		181		8,128		6,809	1Q 2010
045427AE1		3,371		1,805		1,566		1,805		610	1Q 2010
12640PAA3		9,684		9,480		204		9,480		8,902	1Q 2010
126670ZN1		26,523		21,352		5,171		21,352		3,899	1Q 2010
12667G5G4		23,783		23,533		250		23,533		21,180	1Q 2010
126685DZ6		6,759		6,287		472		6,287		5,438	1Q 2010
225470FJ7		9,677		9,494		183		9,494		7,925	1Q 2010
225470YD9		60,770		59,922		848		59,922		37,312	1Q 2010
22942KCA6		22,560		22,305		255		22,305		16,542	1Q 2010
23245CAF7		256		246		10		246		586	1Q 2010
32027LAG0		110		94		16		94		57	1Q 2010
32028TAF4		171		85		86		85		100	1Q 2010
35729PPZ7		17,076		14,880		2,196		14,880		248	1Q 2010
361856EC7		25,782		25,461		321		25,461		16,478	1Q 2010
3622MAAF8		205		134		71		134		52	1Q 2010
38011AAC8		2,581		2,563		18		2,563		2,023	1Q 2010
43710LAF1		82		8		74		8		34	1Q 2010
45661EAE4		27,998		20,271		7,727		20,271		9,966	1Q 2010
46628SAJ2		10,507		10,154		353		10,154		6,420	1Q 2010
50177AAM1		9,810		2,378		7,432		2,378		1,242	1Q 2010
525170CG9		1,722		1,657		65		1,657		1,404	1Q 2010
525221GR2		6,622		3,934		2,688		3,934		1,875	1Q 2010
525221HE0		15,734		11,847		3,887		11,847		4,671	1Q 2010
52524MAW9		10,557		9,991		566		9,991		3,594	1Q 2010
52524YAA1		42,308		42,286		22		42,286		33,282	1Q 2010
655374AA4		2,702		2,353		349		2,353		1,117	1Q 2010
68400DAG9		2,794		1,924		870		1,924		106	1Q 2010
70557RAB6		37,812		32,192		5,620		32,192		18,685	1Q 2010
74925FAA1		17,548		16,761		787		16,761		15,542	1Q 2010
76110WPD2		3,676		3,387		289		3,387		2,855	1Q 2010
76110WQB5		15,198		14,267		931		14,267		12,048	1Q 2010
761118RM2		3,297		3,186		111		3,186		1,587	1Q 2010
761118VY1		28,164		25,601		2,563		25,601		11,604	1Q 2010
81379EAD4		5,191		3,589		1,602		3,589		99	1Q 2010
86357UAA9		23,809		21,484		2,325		21,484		16,973	1Q 2010
86357UBM2		4,156		3,750		406		3,750		3,020	1Q 2010
86358EZU3		8,992		7,205		1,787		7,205		2,672	1Q 2010
86365EAA5		12,137		10,952		1,185		10,952		8,530	1Q 2010
86365EAC1		5,116		4,616		500		4,616		3,718	1Q 2010
86365KAA1		4,184		3,775		409		3,775		2,989	1Q 2010
93935FAA9		5,241		5,003		238		5,003		2,472	1Q 2010
000759BP4		757		700		57		700		589	2Q 2010
02148AAA4		48,811		46,735		2,076		46,735		33,688	2Q 2010
02148YAJ3		7,973		7,794		179		7,794		6,567	2Q 2010
05948KL31		18,007		17,283		724		17,283		11,108	2Q 2010
059494AA2		41,693		41,000		693		41,000		31,082	2Q 2010
05953LAH2		1,317		888		429		888		319	2Q 2010
12668VAF6		8,391		8,231		160		8,231		4,535	2Q 2010
20173TAM7		7,151		5,554		1,597		5,554		1,032	2Q 2010
225470FJ7		9,025		8,578		447		8,578		8,170	2Q 2010

58

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

CUSIP	Amortized Cost Before Current Period OTTI		Present Value of Projected Cash Flows		Recognized OTTI		Amortized Cost After OTTI		Fair Value at Time  of OTTI		Quarter in which Impairment Occurred
225470U27		6,061		5,459		602		5,459		4,457	2Q 2010
22942KCA6		21,269		21,106		163		21,106		15,188	2Q 2010
32054YAD5		353		160		193		160		104	2Q 2010
35729PPZ7		14,854		13,465		1,389		13,465		920	2Q 2010
36244SAE8		901		881		20		881		508	2Q 2010
46629YAK5		4,361		1,232		3,129		1,232		795	2Q 2010
50177AAM1		2,227		1,477		750		1,477		1,291	2Q 2010
525170CG9		1,584		1,292		292		1,292		1,635	2Q 2010
525221HE0		11,184		6,764		4,420		6,764		5,228	2Q 2010
52522QAM4		121,936		116,652		5,284		116,652		83,155	2Q 2010
65536PAA8		3,451		3,224		227		3,224		2,937	2Q 2010
761118RM2		3,103		3,049		54		3,049		1,563	2Q 2010
86358EZU3		7,161		6,018		1,143		6,018		1,603	2Q 2010
000759BP4		674		657		17		657		572	3Q 2010
02148AAA4		44,694		41,915		2,779		41,915		35,127	3Q 2010
02148YAJ3		7,636		7,630		6		7,630		5,659	3Q 2010
05948KV63		13,694		13,656		38		13,656		12,859	3Q 2010
059494AA2		39,536		39,315		221		39,315		30,326	3Q 2010
059512AP8		1,912		1,732		180		1,732		744	3Q 2010
05953LAH2		832		708		124		708		304	3Q 2010
12638DAA4		72,351		64,487		7,864		64,487		58,004	3Q 2010
12640PAA3		7,475		7,142		333		7,142		7,293	3Q 2010
12667G5G4		24,540		24,439		101		24,439		24,121	3Q 2010
126685DZ6		5,919		5,603		316		5,603		4,887	3Q 2010
12669GTS0		50,815		47,578		3,237		47,578		25,003	3Q 2010
20173TAM7		5,443		1,960		3,483		1,960		1,077	3Q 2010
225470FJ7		8,417		8,408		9		8,408		8,621	3Q 2010
225470T94		6,996		6,650		346		6,650		5,183	3Q 2010
225470YD9		56,415		53,591		2,824		53,591		39,237	3Q 2010
225492AE7		21,757		21,547		210		21,547		18,885	3Q 2010
22942KCA6		20,247		20,203		44		20,203		15,799	3Q 2010
3622EEAA0		29,835		28,729		1,106		28,729		27,151	3Q 2010
36244SAE8		847		820		27		820		542	3Q 2010
38011AAC8		2,513		2,451		62		2,451		1,914	3Q 2010
46631QAR3		7,471		2,341		5,130		2,341		2,436	3Q 2010
52108MDU4		2,938		295		2,643		295		432	3Q 2010
525170CG9		1,202		1,082		120		1,082		1,185	3Q 2010
52519LAA6		110,126		101,397		8,729		101,397		87,934	3Q 2010
525221HE0		6,238		5,615		623		5,615		4,141	3Q 2010
65536PAA8		1,894		1,747		147		1,747		1,641	3Q 2010
75970JAJ5		5,448		4,933		515		4,933		2,733	3Q 2010
75970QAH3		7,000		6,369		631		6,369		3,783	3Q 2010
761118AH1		31,985		31,648		337		31,648		26,663	3Q 2010
761118VY1		23,714		22,571		1,143		22,571		11,123	3Q 2010
92911GAA7		1,688		1,015		673		1,015		1,121	3Q 2010
92922FZ27		23,995		23,693		302		23,693		21,808	3Q 2010
939336Q55		604		596		8		596		279	3Q 2010
05535DAM6		476		415		61		415		318	3Q 2010
05953YAG6		1,788		1,787		1		1,787		1,619	4Q 2010**
059515AC0		8,952		8,942		10		8,942		5,480	4Q 2010
36245CAC6		2,589		1,121		1,468		1,121		257	4Q 2010
52524YAA1		3,033		3,012		21		3,012		2,837	4Q 2010

59

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

CUSIP	Amortized Cost Before Current Period OTTI		Present Value of Projected Cash Flows		Recognized OTTI		Amortized Cost After OTTI		Fair Value at Time  of OTTI		Quarter in which Impairment Occurred
61754HAB8		2,987		2,790		197		2,790		1,467	4Q 2010**
02148YAJ3		7,480		7,334		146		7,334		5,783	4Q 2010
05530PAA0		2,460		2,395		65		2,395		2,046	4Q 2010
059494AA2		37,667		37,657		10		37,657		30,418	4Q 2010
059515AC0		8,938		7,602		1,336		7,602		5,504	4Q 2010
05953LAH2		626		432		194		432		273	4Q 2010
05953YAG6		1,732		1,553		179		1,553		1,575	4Q 2010
12638DAA4		61,724		61,571		153		61,571		56,681	4Q 2010
12667G5G4		12,382		12,239		143		12,239		11,936	4Q 2010
12668RAA6		27,353		25,747		1,606		25,747		16,167	4Q 2010
12669GTS0		46,681		44,524		2,157		44,524		24,463	4Q 2010
14984WAA8		7,942		7,730		212		7,730		6,113	4Q 2010
225470U27		5,279		5,139		140		5,139		4,314	4Q 2010
225470YD9		51,189		50,912		277		50,912		37,621	4Q 2010
22942KCA6		19,399		18,120		1,279		18,120		14,757	4Q 2010
36245CAC6		1,112		833		279		833		258	4Q 2010
36245RAA7		3,755		3,495		260		3,495		2,677	4Q 2010
39539KAF0		10,205		9,957		248		9,957		8,804	4Q 2010
41161MAC4		54,375		52,192		2,183		52,192		33,461	4Q 2010
45661EAE4		8,907		2,644		6,263		2,644		2,517	4Q 2010
52519LAA6		97,842		97,267		575		97,267		84,903	4Q 2010
525221GR2		3,510		1,336		2,174		1,336		1,054	4Q 2010
525221HE0		5,322		3,506		1,816		3,506		3,634	4Q 2010
52522QAM4		106,741		105,722		1,019		105,722		81,409	4Q 2010
52524YAA1		32,721		31,200		1,521		31,200		30,754	4Q 2010
61754HAB8		2,771		2,281		490		2,281		1,448	4Q 2010
74925FAA1		14,656		14,038		618		14,038		13,792	4Q 2010
759676AJ8		6,794		6,391		403		6,391		4,825	4Q 2010
75971EAF3		6,200		6,088		112		6,088		3,542	4Q 2010
761118VY1		21,814		20,938		876		20,938		11,309	4Q 2010
81379EAD4		3,583		3,258		325		3,258		348	4Q 2010
863592AP6		21,291		21,076		215		21,076		19,735	4Q 2010
863592AQ4		9,443		9,303		140		9,303		8,654	4Q 2010
92911CAA6		241		94		147		94		9	4Q 2010
92922FZ27		22,761		22,760		1		22,760		20,920	4Q 2010
939336Q55		576		558		18		558		302	4Q 2010
02148AAA4		56,623		55,412		1,211		55,412		27,639	3Q 2009
02148YAJ3		10,038		9,635		403		9,635		5,095	3Q 2009
045427AE1		5,981		4,341		1,640		4,341		388	3Q 2009
126670ZN1		32,849		28,835		4,014		28,835		2,148	3Q 2009
12668VAF6		14,078		9,775		4,303		9,775		3,695	3Q 2009
225470FJ7		11,026		10,842		184		10,842		6,252	3Q 2009
225470T94		9,057		8,721		336		8,721		4,335	3Q 2009
22942KCA6		27,233		25,136		2,097		25,136		14,065	3Q 2009
32027LAG0		156		153		3		153		55	3Q 2009
32028TAF4		214		210		4		210		167	3Q 2009
35729PPC8		3,943		727		3,216		727		169	3Q 2009
3622MAAF8		300		294		6		294		73	3Q 2009
40430FAF9		2,814		591		2,223		591		93	3Q 2009
43710LAF1		152		150		2		150		94	3Q 2009
46628SAJ2		11,798		11,254		544		11,254		4,475	3Q 2009
576435AT8		494		484		10		484		303	3Q 2009

60

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

CUSIP	Amortized Cost Before Current Period OTTI		Present Value of Projected Cash Flows		Recognized OTTI		Amortized Cost After OTTI		Fair Value at Time  of OTTI		Quarter in which Impairment Occurred
655374AA4		3,374		3,252		122		3,252		1,663	3Q 2009
86358EZU3		20,660		10,929		9,731		10,929		3,505	3Q 2009
939336Q55		725		687		38		687		255	3Q 2009
02148AAA4		55,412		54,674		738		54,674		30,484	3Q 2009
059512AP8		6,545		2,207		4,338		2,207		745	3Q 2009
12668VAF6		9,775		9,187		588		9,187		4,470	3Q 2009
225470FJ7		10,842		10,455		387		10,455		6,985	3Q 2009
22942KCA6		25,136		24,544		592		24,544		14,572	3Q 2009
23245CAF7		440		317		123		317		90	3Q 2009
3622MAAF8		294		248		46		248		48	3Q 2009
36244SAE8		1,000		949		51		949		481	3Q 2009
43710LAF1		150		107		43		107		113	3Q 2009
52524MAW9		11,476		11,109		367		11,109		3,902	3Q 2009
68400DAG9		4,806		3,554		1,252		3,554		193	3Q 2009
70557RAB6		41,797		37,940		3,857		37,940		20,360	3Q 2009
86358EZU3		10,929		9,287		1,642		9,287		1,747	3Q 2009
939336Q55		687		680		7		680		260	3Q 2009
059494AA2		45,468		44,726		742		44,726		30,478	4Q 2009
05951VAV1		60,026		59,859		167		59,859		34,196	4Q 2009
05948KV63		15,678		15,283		395		15,283		11,397	4Q 2009
126670ZN1		28,832		26,567		2,265		26,567		3,802	4Q 2009
126685DZ6		8,557		6,962		1,595		6,962		5,593	4Q 2009
23245CAF7		304		267		37		267		214	4Q 2009
12667G5G4		28,792		27,581		1,211		27,581		24,737	4Q 2009
02148AAA4		53,080		52,679		401		52,679		32,386	4Q 2009
02148YAJ3		9,305		8,787		518		8,787		6,122	4Q 2009
045427AE1		4,341		3,378		963		3,378		517	4Q 2009
12640PAA3		11,545		10,987		558		10,987		9,882	4Q 2009
225470FJ7		10,116		10,075		41		10,075		7,421	4Q 2009
32027LAG0		147		116		31		116		46	4Q 2009
32028TAF4		198		182		16		182		125	4Q 2009
38011AAC8		2,961		2,627		334		2,627		1,992	4Q 2009
361856EC7		31,354		26,889		4,465		26,889		14,755	4Q 2009
3622MAAF8		233		218		15		218		55	4Q 2009
43710LAF1		96		91		5		91		80	4Q 2009
52524YAA1		46,921		46,677		244		46,677		35,812	4Q 2009
52524MAW9		10,923		10,743		180		10,743		4,023	4Q 2009
576435AT8		467		397		70		397		284	4Q 2009
655374AA4		3,144		2,723		421		2,723		1,573	4Q 2009
68400DAG9		3,535		2,809		726		2,809		180	4Q 2009
761118VY1		30,381		29,354		1,027		29,354		12,445	4Q 2009
86358EZU3		9,243		9,032		211		9,032		222	4Q 2009
225470T94		8,516		7,425		1,091		7,425		5,324	4Q 2009
225470U27		7,991		6,431		1,560		6,431		4,577	4Q 2009
933637AJ9		3,782		3,505		277		3,505		2,574	4Q 2009

** Impairment amount was recorded as a part of the cumulative effect of adoption of amendments to SSAP No. 91R, which resulted in the cash collateral received from derivative counterparties and the related reinvestment of that cash collateral being reported on the Company’s balance sheet. These impairments were not reflected in the income statement in the current period.

61

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

The unrealized losses of loan-backed and structured securities where fair value is less than cost or amortized cost for which an OTTI has not been recognized in earnings as of December 31, 2010 and 2009 is as follows:

	Losses 12 Months or More		Losses Less Than 12 Months
Year ended December 31, 2010
The aggregate amount of unrealized losses	$	1,458,666	$	46,087
The aggregate related fair value of securities with unrealized losses		5,640,930		1,393,078

	Losses 12 Months or More		Losses Less Than 12 Months
Year ended December 31, 2009
The aggregate amount of unrealized losses	$	2,777,510	$	116,079
The aggregate related fair value of securities with unrealized losses		7,198,974		1,553,619

Detail of net investment income (loss) is presented below:

	Year Ended December 31
	2010			2009			2008
Income (loss):
Bonds	$	2,476,783		$	2,581,437		$	2,993,763
Preferred stocks		10,296			10,395			118,882
Common stocks		36,266			8,444			46,168
Mortgage loans on real estate		534,467			609,836			690,904
Real estate		20,816			20,748			21,328
Policy loans		50,210			50,065			46,017
Cash, cash equivalents and short-term investments		11,008			38,804			85,494
Derivatives		(147,236	)		(134,716	)		(9,236	)
Other invested assets		50,078			17,276			28,504
Other		14,525			9,242			32,637
Gross investment income		3,057,213			3,211,531			4,054,461
Less investment expenses		138,042			138,374			167,535
Net investment income	$	2,919,171		$	3,073,157		$	3,886,926

62

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

Proceeds from sales and other disposals of bonds and preferred stock and related gross realized capital gains and losses were as follows:

	Year Ended December 31
	2010			2009			2008
Proceeds	$	24,752,873		$	17,076,601		$	20,354,654
Gross realized gains		1,626,104			365,886			362,690
Gross realized losses		(142,953	)		(394,368	)		(440,705	)
Net realized capital gains (losses)	$	1,483,151		$	(28,482	)	$	(78,015	)

The Company had gross realized losses for the years ended December 31, 2010, 2009 and 2008 of $192,541, $618,554 and $367,432, respectively, which relate to losses recognized on other-than-temporary declines in the fair values of bonds and preferred stocks.

Net realized capital gains (losses) on investments are summarized below:

	Realized
	Year Ended December 31
	2010			2009			2008
Bonds	$	1,290,685		$	(612,760	)	$	(324,506	)
Preferred stocks		(75	)		6,697			(120,940	)
Common stocks		2,949			(4,947	)		(65,021	)
Mortgage loans on real estate		(18,451	)		(55,349	)		(7,074	)
Real estate		(235	)		(1,051	)		17,781
Cash, cash equivalents and short-term investments		12			80			(13,767	)
Derivatives		(160,155	)		(437,350	)		54,650
Other invested assets		124,712			(8,392	)		654,443
		1,239,442			(1,113,072	)		195,566
Federal income tax effect		(450,184	)		235,951			119,219
Transfer to interest maintenance reserve		(846,096	)		176,600			51,433
Net realized capital gains (losses) on investments	$	(56,838	)	$	(700,521	)	$	366,218

63

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

At December 31, 2010 and 2009, the Company had recorded investments in restructured securities of $46,209 and $90,186, respectively. The capital gains (losses) taken as a direct result of restructures in 2010, 2009 and 2008 were $16,745, $(84,752) and $1,905, respectively. The Company often has impaired a security prior to the restructure date. These impairments are not included in the calculation of restructure related losses and are accounted for as a realized loss, reducing the cost basis of the security involved.

The changes in net unrealized capital gains and losses on investments were as follows:

	Change in Unrealized
	Year Ended December 31
	2010			2009			2008
Bonds	$	(53,819	)	$	16,818		$	(226,573	)
Preferred stocks		(35	)		(46,613	)		(22,844	)
Common stocks		22,057			36,097			(28,697	)
Affiliated entities		70,914			37,287			(7,222	)
Mortgage loans on real estate		1,826			(8,024	)		—
Cash, cash equivalents and short-term investments		—			284			—
Derivatives		113,051			(410,982	)		382,983
Other invested assets		25,289			(211,719	)		(900,944	)
Change in unrealized capital gains (losses)	$	179,283		$	(586,852	)	$	(803,297	)

The Company did not issue any new mortgage loans during 2010. During 2010, the Company reduced interest rates on mortgages by 3% for one loan in the amount of $1,986, by 2% for one loan in the amount of $1,269 and by 1% for two loans in the amount of $61,000. Mortgage loans with a carrying amount of $6 were non-income producing for the previous 180 days. Accrued interest of $1, $3 and $346 related to these mortgage loans was excluded from investment income at December 31, 2010, 2009 and 2008, respectively. The Company has a mortgage or deed of trust on the property thereby creating a lien which gives it the right to take possession of the property (among other things) if the borrower fails to perform according to the terms of the loan documents. The Company requires all mortgaged properties to carry fire insurance equal to the value of the underlying property. At December 31, 2010 there were no taxes, assessments and other amounts advanced not included in the mortgage loan total.

64

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

During 2009, the Company issued mortgage loans with interest rates of 6.65% for commercial loans and 7.00% for agricultural loans. During 2009, the Company did not reduce interest rates on any outstanding mortgages. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated during the year ended December 31, 2009 at the time of origination was 60%. At December 31, 2009, mortgage loans with a carrying value of $11 were non-income producing for the previous 180 days. Taxes, assessments and other amounts advanced not included in the mortgage loan total were $16 for the year ended December 31, 2009.

At December 31, 2010 and 2009, respectively, the Company held $89,765 and $121,760 in impaired loans with related allowance for credit losses of $6,198 and $8,024. There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2010 and 2009, respectively. The average recorded investment in impaired loans during 2010 and 2009 was $137,077 and $32,445, respectively.

The following table provides a reconciliation of the beginning and ending balances for the allowance for credit losses on mortgage loans:

	Year Ended December 31
	2010			2009			2008
Balance at beginning of period	$	8,024		$	11,924		$	—
Additions, net charged to operations		16,645			20,940			11,924
Recoveries in amounts previously charged off		(18,471	)		(24,840	)		—
Balance at end of period	$	6,198		$	8,024		$	11,924

The Company accrues interest income on impaired loans to the extent deemed collectible (delinquent less than 91 days) and the loan continues to perform under its original or restructured contractual terms. Interest income on nonperforming loans generally is recognized on a cash basis. For the years ended December 31, 2010, 2009 and 2008, respectively, the Company recognized $8,500, $1,993 and $1,374 of interest income on impaired loans. Interest income of $8,568, $509 and $1,570, respectively, was recognized on a cash basis for the years ended December 31, 2010, 2009 and 2008.

At December 31, 2010 and 2009, the Company held a mortgage loan loss reserve in the AVR of $77,736 and $123,257, respectively.

65

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:

Geographic Distribution							Property Type Distribution
	December 31							December 31
	2010			2009				2010			2009
South Atlantic		24	%		23	%	Office		31	%		31	%
Pacific		22			22		Apartment		21			21
Middle Atlantic		17			15		Retail		21			20
Mountain		13			15		Industrial		17			19
E. North Central		10			10		Other		5			5
W. North Central		6			5		Agricultural		3			3
W. South Central		4			5		Medical		2			1
E. South Central		2			3
New England		2			2

At December 31, 2010 and 2009, the Company had mortgage loans with a total net admitted asset value of $13,125 and $13,454, respectively, which had been restructured in accordance with SSAP No. 36, Troubled Debt Restructuring. The Company did not have any mortgage loans which had been restructured in accordance with SSAP No. 36 at December 31, 2008. There were no realized losses during the years ended December 31, 2010, 2009 and 2008 related to such restructurings. There were no commitments to lend additional funds to debtors owing receivables at December 31, 2010, 2009 or 2008.

During 2010, the Company recorded an impairment of $3,276 for its investment in Stonington Capital Appreciation 1994 Fund, L.P., and an impairment of $272 for its investment in Yield Strategies Fund I, L.P. The impairments were taken because the decline in fair value of the funds was deemed to be other than temporary and a recovery in value from the remaining underlying investments in the funds was not anticipated. These write-downs are included in net realized capital gains (losses) within the statements of operations.

A write down of carrying value is required when an investor’s intent to retain the investment in the issuer has changed at the reporting date and there is not a sufficient period of time to allow for any anticipated recovery in value to occur. At December 31, 2009 and 2008, respectively, the Company recorded an impairment of $15,287 and $42,829 for its investment in Zero Beta Fund, LLC. The impairment was taken because there is an intent to sell some of the underlying investments of the fund before any anticipated recovery in value would occur.

66

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

During 2009, the Company recorded impairments of $40,688 and $10,030 for its investment in Real Estate Alternatives Portfolio 2, LLC and Real Estate Alternatives Portfolio 3, LLC, respectively. The impairment was taken because the declines in fair value of underlying investments of the fund were deemed to be other-than-temporary.

During 2009, the Company recorded an impairment of $2,120 for its investment in Yucaipa Equity Partners, L.P., an impairment of $2,884 for its investment in BCI Growth IV, L.P., an impairment of $296 for its investment in Allsop Venture Partners III, L.P., an impairment of $1,548 for its investment in B III Capital Partners, L.P., an impairment of $551 for its investment in Cahill, Warnock Strategic Partners Fund, L.P., an impairment of $49 for its investment in CM Equity Partners, L.P., an impairment of $133 for its investment in Conning Insurance Capital Limited Partnership III, an impairment of $706 for its investment in FS Equity Partners III, L.P. and an impairment of $5,133 for its investment in Harbour Group Investments III, L.P. It was determined that the decline was other than temporary because the expected future proceeds is the current reflected fair value on each of the deals.

At December 31, 2010, the Company had ownership interests in sixty-two LIHTC Investments. The remaining years of unexpired tax credits ranged from one to eleven. One property was the subject of a review by the South Dakota Housing Development Authority in which the Company is responding with corrective actions. The length of time remaining for holding periods ranged from one to sixteen years. The amount of contingent equity commitments expected to be paid during the years 2011 to 2019 is $29,934. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

At December 31, 2009, the Company had ownership interests in sixty-one LIHTC Investments. The remaining years of unexpired tax credits ranged from one to twelve and none of the properties were subject to regulatory review. The length of time remaining for holding periods ranged from one to sixteen years. The amount of contingent equity commitments expected to be paid during the years 2010 to 2019 is $45,413. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

67

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

The following table provides the carrying value of state transferable tax credits gross of any related tax liabilities and total unused transferable tax credits by state and in total as of December 31, 2010 and 2009:

			December 31, 2010
Description of State Transferable Tax Credits	State		Carrying Value		Unused Amount*
Low-Income Housing Tax Credits		MA	$	5,135	$	8,370
Low-Income Housing Tax Credits		MO		1,461		1,642
Total			$	6,596	$	10,012
			December 31, 2009
Description of State Transferable Tax Credits	State		Carrying Value		Unused Amount
Low-Income Housing Tax Credits		MA	$	4,479	$	8,370
Total			$	4,479	$	8,370

* The unused amount reflects credits that the Company deems will be realizable in the period from 2011 to 2014.

The Company estimated the utilization of the remaining state transferable tax credits by projecting a future tax liability based on projected premium, tax rates and tax credits and comparing the projected future tax liability to the availability of remaining state transferable tax credits. The Company had no impairment losses related to state transferable tax credits.

On December 31, 2010, the Company sold two real estate related limited liability company interests (Transamerica Pyramid Properties, LLC and Transamerica Realty Properties, LLC) to Monumental Life Insurance Company (MLIC), an affiliate, for a combined sale price of $252,975. The sale price was based predominantly on the valuations of the properties within each of the entities. This transaction resulted in a realized gain of $24,296.

68

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

The Company uses interest rate swaps to reduce market risk in interest rates and to alter interest rate exposures arising from mismatches between assets and liabilities. An interest rate swap is an arrangement whereby two parties (counterparties) enter into an agreement to exchange periodic interest payments. The dollar amount the counterparties pay each other is an agreed-upon period interest rate multiplied by an underlying notional amount. Generally, no cash is exchanged at the outset of the contract and no principal payments are made by either party. The Company also uses cross currency swaps to reduce market risk in foreign currencies and to alter exchange exposure arising from mismatches between assets and liabilities. A cash payment is often exchanged at the outset of the swap contract, representing the present value of cash flows of the instrument. A notional currency exchange occurs at the beginning and end of the contract. During the life of the swap, the counterparties exchange fixed or floating interest payments in its swapped currency. All swap transactions are entered into pursuant to master agreements providing for a single net payment to be made by one counterparty at each due date.

The Company invests in capped floating rate commercial mortgage loans and uses interest rate caps to convert the commercial mortgage loan into a pure floating rate asset in order to meet its overall asset/liability strategy. Interest rate caps provide for the receipt of payments when interest rates rise above the strike rates in the contract. A single premium is paid by the Company at the beginning of the interest rate cap contracts.

The Company replicates investment grade corporate bonds by combining a AAA rated security as a cash component with a credit default swap which, in effect, converts the high quality asset into a lower rated investment grade asset. Using the swap market to replicate credit quality enables the Company to enhance the relative values while having the ability to execute larger transactions in a shortened time frame. A premium is received by the Company on a periodic basis and recognized in investment income. The Company replicates hybrid fixed to floating treasuries by combining a US Treasury cash component with a forward starting swap which, in effect converts a fixed US Treasury into hybrid fixed to floating treasury. The purpose of these replications is to aid duration matching between the treasuries and the supported liabilities. Generally these swaps are carried at amortized cost with periodic interest payments beginning at a future date. At December 31, 2010 and 2009, the Company had replicated assets with a fair value of $1,422,102 and $475,424 and credit default swaps with a fair value of $29,383 and $1,377, respectively. For the year ended December 31, 2010, the Company did not recognize any capital losses related to replication transactions. For the years ended December 31, 2009 and 2008, respectively, the Company recognized $3,088 and $306 in capital losses related to replication transactions.

69

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

The Company replicates investment grade corporate bonds by writing credit default swaps. As a writer of credit swaps, the Company actively monitors the underlying asset, being careful to note any events (default or similar credit event) that would require the Company to perform on the credit swap. If such events would take place the Company has recourse provisions from the proceeds of the bankruptcy settlement of the underlying entity or by the sale of the underlying bond. As of December 31, 2010, credit default swaps, used in replicating corporate bonds are as follows:

Deal, Receive (Pay), Underlying	Maturity Date	Maximum Future Payout (Estimate)		Current Fair Value
3823, SWAP USD0.43/USD0, 023551L@1	12/20/2012	$	2,000	$	2
3936, SWAP USD0.49/USD0, 031162F@4	6/20/2013		15,000		86
3817, SWAP USD0.6/USD0, 872384A@1	12/20/2012		1,000		4
3815, SWAP USD0.6/USD0, 872384A@1	12/20/2012		3,000		12
3820, SWAP USD0.6/USD0, 872384A@1	12/20/2012		1,000		4
3937, SWAP USD0.85/USD0, 370334F@8	6/20/2013		15,000		219
3938, SWAP USD1.52/USD0, 88732JA@7	6/20/2013		12,000		303
3066, SWAP USD0.41/USD0, 459200F#3	4/15/2041		40,000		285
3818, SWAP USD0.6/USD0, 872384A*3	1/15/2021		1,000		4
3247, SWAP USD0.37/USD0, 12189TA*5	10/15/2014		13,000		33
3249, SWAP USD0.39/USD0, 539830C#4	10/15/2014		17,000		57
3251, SWAP USD0.38/USD0, 666807B#8	10/15/2014		13,000		28
3725, SWAP USD1.261/USD0, 969457E#3	6/15/2019		5,000		(13	)
3725, SWAP USD1.261/USD0, 969457E#3	6/15/2019		20,000		(51	)
4199, SWAP USD1/USD0, BAE3BZ$01	2/15/2040		20,000		140
4201, SWAP USD1/USD0, 36962G$01	11/15/2018		10,000		(152	)
4200, SWAP USD1/USD0, 59156R$01	8/15/2040		10,000		(279	)
4203, SWAP USD1/USD0, 38141G$01	5/15/2038		10,000		(93	)
4208, SWAP USD1/USD0, 36962G$02	8/15/2040		10,000		(152	)
4208, SWAP USD1/USD0, 36962G$02	8/15/2040		10,000		(152	)
4233, SWAP USD1/USD0, BAE3BZ$03	5/15/2040		20,000		140
4234, SWAP USD1/USD0, 025816$01	5/15/2040		20,000		215
4235, SWAP USD1/USD0, 36962G$03	5/15/2040		20,000		(304	)
4236, SWAP USD1/USD0, 14040E$01	5/15/2040		20,000		186
4237, SWAP USD1/USD0, BAE3BZ$04	5/15/2040		7,500		52
4237, SWAP USD1/USD0, BAE3BZ$04	5/15/2040		12,500		87
4238, SWAP USD1/USD0, 00817Y$01	5/15/2040		7,500		155

70

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

Deal, Receive (Pay), Underlying	Maturity Date	Maximum Future Payout (Estimate)		Current Fair Value
4238, SWAP USD1/USD0, 00817Y$01	5/15/2040	$	12,500	$	259
4239, SWAP USD1/USD0, 91324P$01	2/15/2040		20,000		49
4240, SWAP USD1/USD0, BAE3BZ$05	2/15/2040		20,000		140
4241, SWAP USD1/USD0, 14040E$02	2/15/2040		12,500		116
4241, SWAP USD1/USD0, 14040E$02	2/15/2040		7,500		70
4244, SWAP USD1/USD0, BAE3BZ$06	8/15/2040		20,000		140
4248, SWAP USD1/USD0, BAE3BZ$07	5/15/2030		20,000		140
4250, SWAP USD1/USD0, 02209S$01	11/15/2028		20,000		77
4251, SWAP USD1/USD0, 02209S$02	11/15/2039		9,722		37
4251, SWAP USD1/USD0, 02209S$02	11/15/2039		10,278		40
4252, SWAP USD1/USD0, 29273R$01	11/15/2039		10,000		(150	)
4253, SWAP USD1/USD0, 460146$01	11/15/2027		20,000		(163	)
4254, SWAP USD1/USD0, 59156R$02	2/15/2040		20,000		(558	)
4255, SWAP USD1/USD0, 025816$02	11/15/2039		20,000		215
4256, SWAP USD1/USD0, 02209S$03	5/15/2040		20,000		77
4257, SWAP USD1/USD0, 878742$01	2/15/2040		20,000		(96	)
4258, SWAP USD1/USD0, 828807$01	11/15/2039		6,667		16
4258, SWAP USD1/USD0, 828807$01	11/15/2039		13,333		32
4267, SWAP USD1/USD0, 29273R$02	11/15/2039		6,667		(100	)
4267, SWAP USD1/USD0, 29273R$02	11/15/2039		13,333		(200	)
4268, SWAP USD1/USD0, 14040E$03	8/15/2025		20,000		186
4261, SWAP USD1/USD0, 35671D$01	5/15/2030		20,000		(85	)
4262, SWAP USD1/USD0, 59156R$03	11/15/2026		20,000		(558	)
4263, SWAP USD1/USD0, 149123$01	8/15/2025		20,000		287
4264, SWAP USD1/USD0, 585055$01	11/15/2026		20,000		418
4265, SWAP USD1/USD0, 00817Y$02	8/15/2040		20,000		414
4266, SWAP USD1/USD0, 91324P$02	2/15/2040		3,529		13
4266, SWAP USD1/USD0, 91324P$02	2/15/2040		16,471		62
4269, SWAP USD1/USD0, 549271$01	5/15/2030		20,000		(162	)
4270, SWAP USD1/USD0, 097023$01	8/15/2040		20,000		337
4271, SWAP USD1/USD0, 585055$02	2/15/2040		8,889		186
4271, SWAP USD1/USD0, 585055$02	2/15/2040		11,111		232
4272, SWAP USD1/USD0, 670346$01	2/15/2040		20,000		207
4273, SWAP USD1/USD0, 61166W$01	11/15/2039		20,000		443
4278, SWAP USD1/USD0, 38141G$03	5/15/2040		8,095		(89	)
4278, SWAP USD1/USD0, 38141G$03	5/15/2040		11,905		(131	)
		$	898,000	$	2,722

71

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

The Company issues products providing the customer a return based on various global equity market indices. The Company uses global futures contracts and/or options to hedge the liability option risk associated with these products. Options are marked to fair value in the balance sheet and the fair value adjustment is recorded to unassigned surplus in the financial statements. The Company did not recognize any income from options contracts for the year ended December 31, 2010. The Company recognized income from options contracts in the amount of $1,534 for the year ended December 31, 2009. The Company did not recognize any income from options contracts for the year ended December 31, 2008.

The Company may sell products with expected benefit payments extending beyond investment assets currently available in the market. Because assets will have to be purchased in the future to fund future liability cash flows, the Company is exposed to the risk of future investments made at lower yields than what is assumed at the time of pricing. Forward-starting interest rate swaps are utilized to lock-in the current forward rate. When rates are below the Company’s target rate, the Company will sell put options on the forward starting swaps of which they would like to enter into. The option will be considered an income generation transaction. Since the underlying is a derivative, the option will be marked to market with the offset through surplus and the premium received for the written option will be deferred during the option period. If the option is exercised, the premium will adjust the forward starting swap’s acquisition cost. The forward starting swap will be then accounted for as follows. The accrual of income begins at the forward date, rather than at the inception date. These forward-starting swaps meet hedge accounting rules and are carried at cost in the financial statements. Gains and losses realized upon termination of the forward-starting swap are deferred and used to adjust the basis of the asset purchased in the hedged forecasted period. The basis adjustment is then amortized into income as a yield adjustment to the asset over its life. At December 31, 2010, the Company had written options with a fair value of $(462) and average fair value for the year of $(425). The Company had no realized gains or losses for the year ended December 31, 2010 related to these options.

The Company holds some credit default swaps linked to a collateralized debt obligation structure. The Company was put into these swaps as a result of market events on a liquidity facility it had entered and does not intend to enter similar transactions in this current form. Under this transaction the Company receives a fee in exchange for providing credit protection if the underlying CDO structure incurs losses greater than its supporting collateral. The fee will be recorded in investment income. These swaps are marked to fair value in the balance sheet and the fair value adjustment is recorded in capital and surplus. At December 31, 2010, the Company had credit default swaps linked to collateralized debt obligations with a fair value of $(4,600) and average fair value for the year of $(4,600).

72

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

The Company is exposed to credit related losses in the event of nonperformance by counterparties to financial instruments, but it does not expect any counterparty to fail to meet their obligations given their high credit ratings of ‘A’ or better. At December 31, 2010 and 2009, the fair value of all contracts, aggregated at a counterparty level, with a positive fair value amounted to $822,271 and $656,501, respectively.

The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets on the Company’s behalf. The posted amount is equal to the difference between the net positive fair value of the contracts and an agreed upon threshold based on the credit rating of the counterparty. If the net fair value of all contracts with this counterparty is negative, the Company is required to post assets. At December 31, 2010 and 2009, the fair value of all contracts, aggregated at a counterparty level, with a negative fair value amounted to $555,186 and $757,479, respectively.

The maximum term over which the Company is hedging its exposure to the variability of future cash flows for forecasted transactions is 22 years. The Company hedges the variability in future cash flows from expected future investment purchases due to changes in interest rates through the use of forward starting interest rate swaps. If the forecasted asset purchase does not occur or is no longer highly probable of occurring, valuation at cost ceases and the forward-starting swap would be valued at its current fair value with fair value adjustments recorded in unassigned surplus. At December 31, 2010 and 2009, none of the Company’s cash flow hedges have been discontinued as it was probable that the original forecasted transactions would occur by the end of the originally specified time period documented at inception of the hedging relationship. As of December 31, 2010, the Company has accumulated deferred gains in the amount of $89,357 related to the termination of forecasted transactions. It is expected that these gains will be used as basis adjustments on future asset purchases expected to transpire throughout 2026.

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.

73

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

At December 31, 2010 and 2009, the Company’s outstanding financial instruments with on and off balance sheet risks, shown in notional amounts, are summarized as follows:

	Notional Amount
	2010		2009
Interest rate and currency swaps:
Receive floating - pay floating	$	2,038,837	$	2,129,869
Receive fixed - pay floating		12,288,402		10,548,640
Receive floating - pay fixed		4,848,678		5,856,796
Receive fixed - pay fixed		129,098		236,005
Interest rate cap agreements		10,250		1,605,000
Interest rate floor agreements		—		64,000

The Company utilizes futures contracts to hedge against changes in market conditions. Initial margin deposits are made by cash deposits or segregation of specific securities as may be required by the exchange on which the transaction was conducted. Pursuant to the contracts, the Company agrees to receive from or pay to the broker, an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin” and are recorded by the Company as a variation margin receivable or payable on futures contracts. During the period the futures contracts are open, daily changes in the values of the contracts are recognized as realized gains (losses) since they are effectively settled daily through the variation account. The Company recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Company’s cost basis in the contract. The Company recognized net realized gains (losses) from futures contracts in the amount of $(120,396), $(180,328) and $119,833 for the years ended December 31, 2010, 2009 and 2008, respectively.

74

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

5. Investments (continued)

Open futures contracts at December 31, 2010 and 2009, were as follows:

Long/Short	Number of Contracts			Contract Type	Opening Market Value			Year-End Market Value
December 31, 2010
				S&P 500
Short		(1,190	)	March 2011 Futures	$	(366,683	)	$	(372,767	)
				US Ultra Bond
Long		4,950		March 2011 Futures		646,816			629,095

Number of Contracts	Contract Type		Opening Market Value		Year-End Market Value
December 31, 2009
		S&P 500
1,074		March 2010 Futures	$	297,468	$	298,223

For the years ended December 31, 2010 and 2009, the Company has recorded $(22,972) and $(73,133), respectively, for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. This has been recorded directly to unassigned surplus as an unrealized loss. The Company did not recognize any unrealized gains and losses during 2010 and 2009 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

At December 31, 2010 and 2009, investments with an aggregate carrying value of $44,885,204 and $44,519,346, respectively, were on deposit with regulatory authorities or were restrictively held in bank custodial accounts for the benefit of such regulatory authorities, as required by statute.

75

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

6. Reinsurance

Certain premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The Company reinsures portions of the risk on certain insurance policies which exceed its established limits, thereby providing a greater diversification of risk and minimizing exposure on larger risks. The Company remains contingently liable with respect to any insurance ceded, and this would become an actual liability in the event that the assuming insurance company became unable to meet its obligation under the reinsurance treaty.

Premiums earned reflect the following reinsurance amounts:

	Year Ended December 31
	2010			2009			2008
Direct premiums	$	10,763,441		$	12,709,931		$	13,309,443
Reinsurance assumed - non affiliates		1,652,588			1,612,150			1,515,095
Reinsurance assumed - affiliates		427,231			196,638			296,438
Reinsurance ceded - non affiliates		(1,042,739	)		(1,130,902	)		(1,101,435	)
Reinsurance ceded - affiliates		(2,635,402	)		(5,287,685	)		(6,501,597	)
Net premiums earned	$	9,165,119		$	8,100,132		$	7,517,944

The Company received reinsurance recoveries in the amount of $2,580,994, $2,360,201 and $2,166,604 during 2010, 2009 and 2008, respectively. At December 31, 2010 and 2009, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $429,355 and $464,122, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2010 and 2009 of $38,345,117 and $37,294,459, respectively.

The net amount of the reduction in surplus at December 31, 2010 and 2009, if all reinsurance agreements were cancelled, is $18,827 and $28,937, respectively.

At December 31, 2010, the Company did not enter into any new reinsurance agreements in which a reserve credit was taken. At December 31, 2009, the amount of reinsurance credits, whether an asset or a reduction of liability, taken for new agreements or amendments was $3,383,308.

76

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

6. Reinsurance (continued)

Effective December 31, 2010, the Company entered into a reinsurance agreement with Western Reserve Life Assurance Co. of Ohio (WRL), an affiliate, to assume on a 100% quota share basis a block of variable universal life business on a modified coinsurance basis. Reserves on the block were $1,013,110, with assets backing the block comprised of $853,669 of separate account assets and $159,441 of general account assets. The Company paid consideration of $193,000, resulting in a pre-tax loss of $193,000 which was included in the statement of operations.

Effective June 1, 2010, the Company entered into an assumption reinsurance agreement in which the Company ceded group annuity policies to Transamerica Financial Life Insurance Company (TFLIC), an affiliate. Reserves of $68,683 were ceded and assets in the amount of $92,931 were transferred. This transaction resulted in a net pre-tax loss to the Company of $24,248, which has been reflected in the statement of operations, as this transaction was deemed economic.

Effective April 1, 2010, the Company entered into an assumption reinsurance agreement in which the Company assumed term life policies from TFLIC. Life and claim reserves of $38,023 and $7,558, respectively, and other assets of $5,538 were assumed by the Company. The Company received consideration of $5,106. This transaction resulted in a net pre-tax loss to the Company of $34,936, which has been reclassified to the balance sheet and presented as goodwill, as this transaction was deemed economic. The goodwill will be amortized into operations over the period in which the Company benefits economically, not to exceed 10 years. Amortization of goodwill for the year was $899.

Effective December 31, 2008, the Company ceded certain term life business to Transamerica Pacific Life Insurance Company (TPIC, formally known as CGC Life Insurance Company (CGC)), an affiliate, on a funds withheld basis. Life and claim reserves of $505,004 and $6,874, respectively were released and the Company established other reserves of $28,680. The net pre-tax gain of $483,198 ($314,079 net of tax) resulting from this transaction was credited directly to unassigned surplus. During the first quarter of 2010 and during 2009, the Company amortized $10,721 and $17,577, respectively, on a pre-tax basis ($6,969 and $11,425, respectively, after-tax) of this gain back into earnings. Effective April 1, 2010, the Company recaptured these term life insurance policies from TPIC. Life and claim reserves of $484,646 and $3,108, respectively, were assumed along with other net assets of $24,933, resulting in a pre-tax loss of $462,821 which was recognized in the statement of operations. With the recapture of this business, the previously deferred gain associated with the original July 1, 2009 cession to TPIC was released into the statement of operations in the amount of $454,900 ($295,685 after-tax).

77

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

6. Reinsurance (continued)

Subsequent to the recapture and also effective April 1, 2010, the Company entered into an indemnity reinsurance agreement to cede the same block of term life insurance policies to MLIC, an affiliate, on a coinsurance basis. The Company released life and claim reserves of $484,646 and $3,108, respectively, and other net assets of $24,933, resulting in a net pre-tax gain of $462,821 ($300,833 net of tax), which was deferred directly into unassigned surplus. During 2010, the Company has amortized $11,200 of this gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

Effective January 1, 2010, the Company entered into an assumption reinsurance agreement in which the Company assumed term life policies from TFLIC. Life and claim reserves of $18,822 and $446, respectively, were assumed, and the Company received consideration of $791. This transaction resulted in a net pre-tax loss to the Company of $18,477, which has been reclassified to the balance sheet and presented as goodwill, as this transaction was deemed economic. The goodwill will be amortized into operations over the period in which the Company benefits economically, not to exceed 10 years. Amortization of the goodwill for the year was $1,752.

Effective January 1, 2010, the Company entered into an assumption reinsurance agreement in which the Company ceded accident and health policies to TFLIC. Claim reserves of $2,357 and other liabilities of $9,761 were ceded by the Company, with $12,118 consideration paid, having no impact on the Company’s net income.

Effective July 1, 2009, and concurrent with the merger of CGC into TPIC, the Company recaptured universal life business secondary guarantee reserves previously ceded to CGC, an affiliate. As a result, a pre-tax loss of $129,005 was included in the statement of operations. The remaining unamortized gain on a pre-tax basis that resulted from the initial ceding transaction to CGC that had been credited directly to unassigned surplus was released into earnings in the amount of $82,288.

Subsequently, effective July 1, 2009, the Company ceded the same block of universal life business plus additional universal life policies (2009 new issues) to TPIC under a coinsurance agreement. The pre-tax gain of $184,918 resulting from this transaction was credited directly to unassigned surplus.

Also effective July 1, 2009, the Company ceded certain term life business to TPIC on a coinsurance basis. The net pre-tax gain of approximately $36,489 resulting from this transaction was credited directly to unassigned surplus.

78

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

6. Reinsurance (continued)

Also effective July 1, 2009, the Company amended a reinsurance agreement with TPIC to change a term agreement from a coinsurance funds withheld treaty to a straight coinsurance treaty. Assets of $58,394 were transferred to TPIC, and the Company released the funds withheld liability of a like amount. There was no earnings impact of this treaty amendment.

The Company entered into an indemnity reinsurance agreement with MLIC, an affiliate, effective July 1, 2009 in which the Company agreed to cede on a coinsurance basis fixed deferred annuities issued under selected plans. The initial consideration paid was $3,474,331, the initial ceding allowance received was $13,677 and reserves ceded were $3,474,331. In addition, an interest maintenance reserve of $15,469 was transferred to MLIC, resulting in a pre-tax gain of $29,146 on the transaction, which was credited directly to unassigned surplus. During 2010 and 2009, the Company amortized $3,765 and $1,895, respectively, into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

Effective June 30, 2009, the Company entered into an indemnity reinsurance agreement with Global Preferred Re Limited, an affiliate, to cede on a 90% quota share basis the net liabilities associated with certain of the Company’s deferred fixed annuity products issued on or after April 1, 2009 on a coinsurance funds withheld basis.

Effective January 1, 2009, the Company terminated and recaptured a block of US credit life and credit disability business that had been reinsured from LIICA, which merged into the Company effective October 2, 2008, to an affiliate, Canadian Premier Life insurance Company (CPLIC). The Company paid CPLIC a recapture fee of $2,564. In addition, the unamortized pre-tax gain held by the Company in unassigned surplus resulting from the original insurance transaction was released into income in the amount of $2,910 ($1,892 on a net of tax basis).

Effective December 31, 2008, the Company recaptured term life business previously ceded to Transamerica International Re (Ireland) Ltd. (TIRI), and Transamerica International Re (Bermuda) Ltd (TIRe) both affiliates. The Company received recapture consideration of $120,476, recorded net assets of $33,804, and recaptured reserves of $856,239 and $53,085 for life and claim reserves, with respect to the recapture from TIRI. The Company received recapture consideration of $25,563, recorded net assets of $5,088, and recaptured reserves of $167,004 and $4,821 for life and claim reserves, with respect to the recapture from TIRe. The Company incurred a statutory loss on the recapture from TIRI in the amount of $755,044 and a statutory loss on the recapture from TIRe in the amount of $141,174. As a result, a pre-tax loss of $896,218 was included in the statement of operations.

79

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

6. Reinsurance (continued)

Subsequently, effective December 31, 2008, the Company ceded term life business to CGC. The Company paid initial consideration of $146,039, released life and claim reserves of $1,023,243 and $57,906 respectively, and established other net liabilities of $38,892. The net pre-tax gain of $896,218 resulting from this transaction was credited directly to unassigned surplus. During 2010, the Company amortized $34,739 ($22,580 after-tax) into earnings with a corresponding charge to unassigned surplus.

The Company has entered into an indemnity reinsurance agreement effective December 31, 2008, with TIRe to cede on a 100% quota share basis the net liabilities associated with certain of the Company’s variable annuity products on a coinsurance and modified coinsurance basis. The Company ceded reserves on a coinsurance basis of $872,822 and ceded premium of a like amount, paid consideration of $223,608 and established a funds withheld liability of $1,096,431. The pre-tax loss of $223,608 ($145,345 on a net of tax basis) is included in the statement of operations. The Company ceded general account and separate account reserves on a modified coinsurance basis of $284,780 and $7,248,603, respectively. An initial reinsurance premium equal to the reserves ceded was recorded, resulting in no gain or loss on the modified coinsurance portion on this transaction.

Effective October 1, 2008 the Company recaptured various guaranteed minimum death benefit (GMDB) riders included in certain of its variable annuity contracts that were previously ceded to TIRe under a 2001 reinsurance agreement. The Company released a funds withheld liability of $40,133 associated with this business and received recapture consideration of $45,038. Reserves recaptured included $100,672 of GMDB reserves and $15,099 of claim reserves. The resulting pre-tax loss of $30,600 was included in the statement of operations. In addition, the unamortized pre-tax ceded gain held by the Company in unassigned surplus resulting from the original reinsurance transaction was released into income in the amount of $16,521 ($10,739 net of tax). Prior to this transaction, the Company had amortized $3,812 on a pre-tax basis ($2,478 on a net of tax basis) into earnings for 2008, with a corresponding charge to unassigned surplus.

Effective December 31, 2008, the Company recaptured term life business previously ceded to TIRI on a funds withheld basis under a 2001 reinsurance agreement. The Company released the funds withheld liability of $38,603, recorded net assets of $5,036 and recaptured reserves of $288,498 and $7,065 for life and claim reserves, respectively. As a result, a pre-tax loss of $251,924 was included in the statement of operations. The gain that resulted from the initial ceding transaction to TIRI that had been credited directly to unassigned surplus was released into earnings in the amount of $221.

80

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

6. Reinsurance (continued)

Subsequently, effective December 31, 2008, the Company ceded term life business on a funds withheld basis to CGC. Life and claim reserves of $288,498 and $7,065, respectively, were released and the Company established a funds withheld liability of $38,603 and established other net liabilities of $5,036. The net pre-tax gain of $251,924 resulting from this transaction was credited directly to unassigned surplus. During 2009, the Company amortized $11,425 into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

Also effective December 31, 2008, the Company ceded certain term life business to CGC on a funds withheld basis. Life and claim reserves of $587,293 and $6,874, respectively, were released and the Company established other reserves of $28,680. The net pre-tax gain of $565,487 resulting from this transaction was credited directly to unassigned surplus.

The Company entered into an assumption reinsurance agreement with MLIC effective September 30, 2008. The Company was the issuer of a series of corporate-owned life insurance policies issued to LIICA. The assumption reinsurance transaction resulted in the Company novating all liabilities arising under these policies to MLIC. The Company ceded reserves of $138,025 and paid consideration of $125,828. The Company recorded a liability of $12,197 within the remittances line related to this transaction. The Company amortized $1,019 and $1,201 of the liability in 2010 and 2009, respectively.

The Company entered into a stop loss reinsurance agreement with Transamerica Life International (Bermuda) Ltd. (TLIB), an affiliate, to cede an in force block of universal life business effective July 1, 2008. Reinsurance premiums paid of $70,728 were offset by a comparable amount of ceded reserves. Several other accounts were impacted by lesser amounts resulting in a pre-tax loss of $15. The net of tax loss of $10 was included in the statement of operations.

81

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

6. Reinsurance (continued)

The Company entered into an assumption reinsurance agreement with CPLIC, effective July 1, 2008. This transaction resulted in CPLIC assuming all in force policies and certificates from the Canadian branch of the Company, along with all of the assets and liabilities related to these policies and all capital supporting this business. Subsequent to this assumption reinsurance transaction, the Company withdrew its license in Canada and therefore considered this transaction an economic transaction. The Company received a ceding commission of $11,460, which resulted in a pre-tax gain. Below is a summary of the net policyholder liabilities and assets transferred effective July 1, 2008:

Invested assets/cash transferred	$	(52,859	)
Ceded reserves		64,882
Due premiums		(2,920	)
Due comp liability		1,007
Retro accruals		1,350
Pre-tax net income impact	$	11,460

The Company entered into an indemnity reinsurance agreement with a nonaffiliated company effective May 1, 2008 in which the Company agreed to cede certain single premium deferred annuities on a coinsurance basis. The initial consideration paid was $446,522, the initial ceding allowance received was $18,263, and reserves ceded were $446,522, resulting in a pre-tax gain of $18,263. The net of tax gain of $11,871 was credited directly to unassigned surplus. The Company amortized $1,406, $2,466 and $1,410 on a net of tax basis into earnings during 2010, 2009 and 2008, respectively, with a corresponding charge to unassigned surplus.

The Company entered into a stop loss reinsurance agreement with TLIB to cede an in force block of universal life business effective January 1, 2008. Reinsurance premiums paid of $3,267,950 were offset by a comparable amount of ceded reserves. Several other accounts were impacted by lesser amounts resulting in a pre-tax loss of $603. The net of tax loss of $392 was included in the statement of operations.

During 2010, 2009 and 2008, the Company amortized deferred gains from reinsurance transactions occurring prior to 2008 of $23,577, $20,240 and $109,704, respectively, into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

82

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

6. Reinsurance (continued)

TLB acquired the direct liability to the policyholder through a court order from the Hong Kong Special Administrative Region Court, effective December 31, 2006, for most of the business issued from TOLIC’s branch in Hong Kong. TLB also acquired the direct liability to the policyholder through a court order from the High Court of the Republic of Singapore, effective December 31, 2006 for all business issued from TOLIC’s branch in Singapore. The novation of the contracts was approved by the Iowa Insurance Department and all policyholder liabilities were transferred to TLB. All balances assumed by TLB were reflected as direct adjustments to the balance sheet. As the transfer occurred between affiliated companies no gain or loss was recognized, and the difference between the assets transferred and the statutory liabilities assumed in the amount of $78,993 was recorded as goodwill and will be amortized into operations over the life of the business, not to exceed ten years. Goodwill in the amount of $8,335, $8,642 and $8,954 was amortized during 2010, 2009 and 2008, respectively, related to this transaction. TLB is valued on a U.S. statutory basis and includes a deferred gain liability of a similar amount to the goodwill reflected in the financials of the Company.

During 2001, TOLIC novated certain traditional life insurance contracts to TFLIC, an affiliate of the Company, via an assumption reinsurance transaction. Under the terms of this agreement, a significant portion of the future statutory-basis profits from the contracts assumed by TFLIC will be passed through to the Company as an experience rated refund. TOLIC recorded a deferred liability of $14,334 as a result of this transaction, which has been fully amortized at December 31, 2010. The accretion of the deferred liability was $1,433 for 2010, 2009 and 2008.

The Company reports a reinsurance deposit receivable of $146,715 and $137,437 as of December 31, 2010 and 2009, respectively. In 1996, TOLIC entered into a reinsurance agreement with an unaffiliated company where, for a net consideration of $59,716, TOLIC ceded certain portions of future obligations under single premium annuity contracts originally written by the Company in 1993. Consistent with the requirements of SSAP No. 75, Reinsurance Deposit Accounting, the Company reports the net consideration paid as a deposit. The amount reported is the present value of the future payment streams discounted at the effective yield rate determined at inception.

During 2010, 2009 and 2008, the Company obtained letters of credit of $804,032, $727,996 and $716,918, respectively, for the benefit of affiliated and nonaffiliated companies that have reinsured business to the Company where the ceding company’s state of domicile does not recognize the Company as an authorized reinsurer.

83

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes

The net deferred income tax asset at December 31, 2010 and 2009 and the change from the prior year are comprised of the following components:

	December 31, 2010
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	1,092,703		$	450,875		$	1,543,578
Statutory Valuation Allowance Adjustment		—			—			—
Adjusted Gross Deferred Tax Assets		1,092,703			450,875			1,543,578
Deferred Tax Liabilities		340,498			153,083			493,581
Subtotal (Net Deferred Tax Assets)		752,205			297,792			1,049,997
Deferred Tax Assets Nonadmitted		257,589			—			257,589
Net Admitted Deferred Tax Assets	$	494,616		$	297,792		$	792,408
				December 31, 2009
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	1,162,628		$	636,817		$	1,799,445
Statutory Valuation Allowance Adjustment		—			(81,188	)		(81,188	)
Adjusted Gross Deferred Tax Assets		1,162,628			555,629			1,718,257
Deferred Tax Liabilities		184,653			339,404			524,057
Subtotal (Net Deferred Tax Assets)		977,975			216,225			1,194,200
Deferred Tax Assets Nonadmitted		535,652			8,992			544,644
Net Admitted Deferred Tax Assets	$	442,323		$	207,233		$	649,556
	Ordinary			Change Capital			Total
Gross Deferred Tax Assets	$	(69,925	)	$	(185,942	)	$	(255,867	)
Statutory Valuation Allowance Adjustment		—			81,188			81,188
Adjusted Gross Deferred Tax Assets		(69,925	)		(104,754	)		(174,679	)
Deferred Tax Liabilities		155,845			(186,321	)		(30,476	)
Subtotal (Net Deferred Tax Assets)		(225,770	)		81,567			(144,203	)
Deferred Tax Assets Nonadmitted		(278,063	)		(8,992	)		(287,055	)
Net Admitted Deferred Tax Assets	$	52,293		$	90,559		$	142,852

84

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes (continued)

The main components of deferred income tax amounts are as follows:

	Year Ended December 31
	2010		2009		Change
Ordinary
Discounting of unpaid losses	$	2,515	$	—	$	2,515
Policyholder reserves		300,047		286,552		13,495
Investments		71,214		30,231		40,983
Deferred acquisition costs		578,542		590,614		(12,072	)
Compensation and benefits accrual		28,548		31,513		(2,965	)
Receivables - nonadmitted		26,307		30,149		(3,842	)
Tax credit carry-forward		—		112,480		(112,480	)
Corporate Provision		44,634		25,163		19,471
Other (including items <5% of ordinary tax assets)		40,896		55,926		(15,030	)
Subtotal		1,092,703		1,162,628		(69,925	)
Statutory valuation allowance adjustment		—		—		—
Nonadmitted		257,589		535,651		(278,062	)
Admitted ordinary deferred tax assets		835,114		626,977		208,137
Capital:
Investments		450,875		636,816		(185,941	)
Other (including items <5% of total capital tax assets)		—		—		—
Subtotal		450,875		636,816		(185,941	)
Statutory valuation allowance adjustment		—		81,188		(81,188	)
Nonadmitted		—		8,992		(8,992	)
Admitted capital deferred tax assets		450,875		546,636		(95,761	)
Admitted deferred tax assets	$	1,285,989	$	1,173,613	$	112,376

85

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes (continued)

	Year Ended December 31
	2010		2009		Change
Deferred Tax Liabilities:
Ordinary
Investments	$	118,738	$	126,913	$	(8,175	)
§807(f) adjustment		71,810		46,221		25,589
Separate account adjustments		—		—		—
Other (including items <5% of total ordinary tax liabilities)		10,171		11,519		(1,348	)
Subtotal		200,719		184,653		16,066
Capital
Investments		278,967		339,404		(60,437	)
Separate account adjustments		—		—		—
Other (including items <5% of total capital tax liabilities)		13,895		—		13,895
Subtotal		292,862		339,404		(46,542	)
Deferred tax liabilities		493,581		524,057		(30,476	)
Net deferred tax assets/liabilities	$	792,408	$	649,556	$	142,852

The Company did not report a valuation allowance for deferred income taxes as of December 31, 2010. The valuation allowance for deferred tax assets as of December 31, 2009 was $81,188. The valuation allowance is primarily related to deferred tax assets of a capital character that in the judgment of management, are not more likely than not to be realized.

86

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes (continued)

As discussed in Note 1, the Company has elected to admit deferred tax assets pursuant to SSAP No. 10R, paragraph 10.e. for the 2010 and 2009 reporting periods. The amount of admitted adjusted gross deferred income tax assets under each component of SSAP No. 10R is as follows:

	December 31, 2010
	Ordinary		Capital		Total
Admission Calculation Components SSAP No. 10R, Paragraphs 10.a., 10.b.,and 10.c.:
SSAP No. 10R, Paragraph 10.a.	$	140,068	$	95,031	$	235,099
SSAP No. 10R, Paragraph 10.b. (the lesser of paragraph 10.b.i. and 10.b.ii. below)		—		2,386		2,386
SSAP No. 10R, Paragraph 10.b.i.		—		2,386		2,386
SSAP No. 10R, Paragraph 10.b.ii.		—		457,414		457,414
SSAP No. 10R, Paragraph 10.c.		200,719		292,862		493,581
Total	$	340,787	$	390,279	$	731,066
Admission Calculation Components SSAP No. 10R, Paragraph 10.e.:
SSAP No. 10R, Paragraph 10.e.i.	$	52,010	$	196,472	$	248,482
SSAP No. 10R, Paragraph 10.e.ii. (the lesser of paragraph 10.e.ii.a and 10.e.ii.b. below)		442,606		101,320		543,926
SSAP No. 10R, Paragraph 10.e.ii.a.		442,606		101,320		543,926
SSAP No. 10R, Paragraph 10.e.ii.b.		558,314		127,807		686,121
SSAP No. 10R, Paragraph 10.e.iii.		340,498		153,083		493,581
Total	$	835,114	$	450,875	$	1,285,989

87

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes (continued)

	December 31, 2009
	Ordinary		Capital		Total
Admission Calculation Components SSAP No. 10R, Paragraphs 10.a., 10.b.,and 10.c.:
SSAP No. 10R, Paragraph 10.a.	$	70,812	$	6,281	$	77,093
SSAP No. 10R, Paragraph 10.b. (the lesser of paragraph 10.b.i. and 10.b.ii. below)		166,410		110,793		277,203
SSAP No. 10R, Paragraph 10.b.i.		166,410		110,793		277,203
SSAP No. 10R, Paragraph 10.b.ii.		229,106		152,536		381,642
SSAP No. 10R, Paragraph 10.c.		184,653		339,404		524,057
Total	$	421,875	$	456,478	$	878,353
Admission Calculation Components SSAP No. 10R, Paragraph 10.e.:
SSAP No. 10R, Paragraph 10.e.i.	$	70,812	$	6,281	$	77,093
SSAP No. 10R, Paragraph 10.e.ii. (the lesser of paragraph 10.e.ii.a and 10.e.ii.b. below)		371,512		200,951		572,463
SSAP No. 10R, Paragraph 10.e.ii.a.		371,512		200,951		572,463
SSAP No. 10R, Paragraph 10.e.ii.b.		371,512		200,951		572,463
SSAP No. 10R, Paragraph 10.e.iii.		184,653		339,404		524,057
Total	$	626,977	$	546,636	$	1,173,613

88

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes (continued)

	Ordinary			Change Capital			Total
Admission Calculation Components SSAP No. 10R, Paragraphs 10.a., 10.b.,and 10.c.:
SSAP No. 10R, Paragraph 10.a.	$	69,256		$	88,750		$	158,006
SSAP No. 10R, Paragraph 10.b. (the lesser of paragraph 10.b.i. and 10.b.ii. below)		(166,410	)		(108,407	)		(274,817	)
SSAP No. 10R, Paragraph 10.b.i.		(166,410	)		(108,407	)		(274,817	)
SSAP No. 10R, Paragraph 10.b.ii.		(229,106	)		304,878			75,772
SSAP No. 10R, Paragraph 10.c.		16,066			(46,542	)		(30,476	)
Total	$	(81,088	)	$	(66,199	)	$	(147,287	)
Admission Calculation Components SSAP No. 10R, Paragraph 10.e.:
SSAP No. 10R, Paragraph 10.e.i.	$	(18,802	)	$	190,191		$	171,389
SSAP No. 10R, Paragraph 10.e.ii. (the lesser of paragraph 10.e.ii.a and 10.e.ii.b. below)		71,094			(99,631	)		(28,537	)
SSAP No. 10R, Paragraph 10.e.ii.a.		71,094			(99,631	)		(28,537	)
SSAP No. 10R, Paragraph 10.e.ii.b.		186,802			(73,144	)		113,658
SSAP No. 10R, Paragraph 10.e.iii.		155,845			(186,321	)		(30,476	)
Total	$	208,137		$	(95,761	)	$	112,376

• 10.a. – Federal income taxes paid in prior year that can be recovered through loss carrybacks for existing temporary differences that reverse by the end of the subsequent calendar year

• 10.b.i. – Adjusted gross DTAs, after the application of 10.a., expected to be realized within one year

• 10.b.ii. – 10% of adjusted statutory capital and surplus as shown on most recently filed statement

• 10.c. – Adjusted gross DTAs, after the application of 10.a. and 10.b., that can be offset against gross DTLs after considering the character of the DTAs and DTLs

• 10.d. – If the reporting entity’s financial statements and risk-based capital (RBC) calculated using an admitted adjusted gross DTA as the sum of 10.a., 10.b., and 10.c. results in the Company’s RBC level being above the maximum RBC level where an action level could occur as a result of the trend test (i.e., 250%); then the Company may elect to admit a higher amount of adjusted gross DTAs as calculated in paragraph 10.e.

• 10.e.i. – Federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse during a timeframe corresponding with IRS tax loss carryback provisions, not to exceed three years

• 10.e.ii.(a) – Adjusted gross DTAs, after the application of 10.e.i, expected to be realized within three years

• 10.e.ii.(b) – 15% of adjusted statutory capital and surplus as shown on most recently filed statement

• 10.e.iii. – Adjusted gross DTAs, after the application of 10.e.i. and 10.e.ii., that can be offset against DTLs after considering the character of the DTAs and DTLs

89

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes (continued)

Total increased admitted adjusted gross DTA’s as the result of the application of paragraph 10.e. SSAP No. 10R:

	December 31, 2010
	Ordinary		Capital			Total
Total increased admitted deferred tax asset	$	494,327	$	60,596		$	554,923
	December 31, 2009
	Ordinary		Capital			Total
Total increased admitted deferred tax asset	$	205,102	$	90,158		$	295,260
	Ordinary		Change Capital			Total
Total increased admitted deferred tax asset	$	289,225	$	(29,562	)	$	259,663
Used in SSAP No. 10R, paragraph 10.d.:

	December 31, 2010
	Ordinary		Capital		Total
Total Adjusted Capital		XXX		XXX		4,667,170
Authorized Control Level		XXX		XXX		636,411
	December 31, 2009
	Ordinary		Capital		Total
Total Adjusted Capital		XXX		XXX		5,600,252
Authorized Control Level		XXX		XXX		678,529
	Ordinary		Change Capital		Total
Total Adjusted Capital		XXX		XXX		(933,082	)
Authorized Control Level		XXX		XXX		(42,118	)

90

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes (continued)

	December 31, 2010
	Ordinary			Capital			Total
SSAP No. 10R, Paragraphs 10.a., 10.b., and 10.c.:
Admitted Deferred Tax Assets	$	340,787		$	390,279		$	731,066
Admitted Assets		XXX			XXX			106,331,752
Adjusted Statutory Surplus*		XXX			XXX			3,743,200
Total Adjusted Capital from DTAs		XXX			XXX			4,667,170
Increases due to SSAP No. 10R, Paragraph 10.e.:
Admitted Deferred Tax Assets	$	494,327		$	60,596		$	554,923
Admitted Assets		494,327			60,596			554,923
Statutory Surplus		494,327			60,596			554,923
	December 31, 2009
	Ordinary			Capital			Total
SSAP No. 10R, Paragraphs 10.a., 10.b., and 10.c.:
Admitted Deferred Tax Assets	$	421,875		$	456,478		$	878,353
Admitted Assets		XXX			XXX			101,159,928
Adjusted Statutory Surplus*		XXX			XXX			4,731,565
Total Adjusted Capital from DTAs		XXX			XXX			5,600,252
Increases due to SSAP No. 10R, Paragraph 10.e.:
Admitted Deferred Tax Assets	$	205,102		$	90,158		$	295,260
Admitted Assets		205,102			90,158			295,260
Statutory Surplus		205,102			90,158			295,260
	Ordinary			Change Capital			Total
SSAP No. 10R, Paragraphs 10.a., 10.b., and 10.c.:
Admitted Deferred Tax Assets	$	(81,088	)	$	(66,199	)	$	(147,287	)
Admitted Assets		XXX			XXX			5,171,824
Adjusted Statutory Surplus*		XXX			XXX			(988,365	)
Total Adjusted Capital from DTAs		XXX			XXX			(933,082	)
Increases due to SSAP No. 10R, Paragraph 10.e.:
Admitted Deferred Tax Assets	$	289,225		$	(29,562	)	$	259,663
Admitted Assets		289,225			(29,562	)		259,663
Statutory Surplus		289,225			(29,562	)		259,663

* As reported on the statutory balance sheet for the most recently filed statement with the domiciliary state commissioner adjusted in accordance with SSAP No. 10R, paragraph 10.b.ii.

• XXX denotes breakout between ordinary and capital is not applicable to this information.

91

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes (continued)

The impact of tax planning strategies at December 31, 2010 was as follows:

	December 31, 2010
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs
(% of Total Adjusted Gross DTAs)		7	%		7	%		14	%
Net Admitted Adjusted Gross DTAs
(% of Total Net Admitted Adjusted Gross DTAs)		14	%		13	%		27	%

Current year income taxes incurred consist of the following major components:

	Year Ended December 31
	2010			2009			Change
Current Income Tax
Federal	$	(268,109	)	$	(104,925	)	$	(163,184	)
Foreign		(2,119	)		(17	)		(2,102	)
Subtotal		(270,228	)		(104,942	)		(165,286	)
Federal income tax on net capital gains		450,184			(235,951	)		686,135
Utilization of capital loss carry-forwards		—			—			—
Other		—			—			—
Federal and foreign income taxes incurred	$	179,956		$	(340,893	)	$	520,849

92

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes (continued)

The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate of 35% to income before tax as follows:

	Year Ended December 31
	2010			2009			2008
Current income taxes incurred	$	179,956		$	(340,893	)	$	(151,595	)
Change in deferred income taxes (without tax on unrealized gains and losses)		126,689			251,128			208,565
Total income tax reported	$	306,645		$	(89,765	)	$	56,970
Income before taxes	$	1,443,732		$	(523,918	)	$	(824,446	)
		35.00	%		35.00	%		35.00	%
Expected income tax expense (benefit) at 35% statutory rate	$	505,306		$	(183,371	)	$	(288,556	)
Increase (decrease) in actual tax reported resulting from:
Dividends received deduction		(27,413	)		(23,617	)		(19,749	)
Tax credits		(57,815	)		(61,814	)		(82,095	)
Tax-exempt income		(90	)		(605	)		(681	)
Tax adjustment for IMR		(1,513	)		(1,213	)		(10,260	)
Surplus adjustment for in-force ceded		(22,522	)		25,009			336,881
Nondeductible expenses		3,213			3,626			2,717
Deferred tax benefit on other items in surplus		35,989			14,424			134,480
Provision to return		(5,730	)		(25,350	)		(2,188	)
Life-owned life insurance		(3,741	)		(4,051	)		(3,955	)
Dividends from certain foreign corporations		374			448			805
Statutory valuation allowance		(81,188	)		81,188			—
Prior period adjustment		(57,775	)		68,049			5,799
Intercompany dividends		(11,620	)		(256	)		—
Pretax income of Single Member Limited Liability Companies (SMLLC’s)		32,281			16,027			—
Partnership permanent adjustment		2,402			2,526			—
Other		(3,513	)		(785	)		(16,228	)
Total income tax reported	$	306,645		$	(89,765	)	$	56,970

93

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes (continued)

For federal income tax purposes, the Company joins in a consolidated income tax return filing with its parent and other affiliated companies. The method of allocation between the companies is subject to a written tax allocation agreement. Under the terms of the tax allocation agreement, allocations are based on separate income tax return calculations. The Company is entitled to recoup federal income taxes paid in the event the future losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in the year generated. The Company is also entitled to recoup federal income taxes paid in the event the losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in any carryback or carryforward year when so applied. Intercompany income tax balances are settled within thirty days of payment to or filing with the Internal Revenue Service. A tax return has not yet been filed for 2010.

As of December 31, 2010, the Company has no tax credit carryforwards. The Company had tax credit carryforwards at December 31, 2009 of $112,480. As of December 31, 2010 and 2009, the Company had no operating loss or capital loss carryforwards available for tax purposes.

The Company incurred income taxes of $248,482 and $146 during 2010 and 2008, respectively, which will be available for recoupment in the event of future net losses. The Company did not incur income taxes during 2009 which will be available for recoupment in the event of future net losses.

The amount of tax contingencies calculated for the Company as of December 31, 2010 and 2009 is $44,265 and $73,038, respectively. The total amount of tax contingencies that, if recognized, would affect the effective income tax rate is $44,265. 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 for the years ending December 31, 2010, 2009 and 2008 is $12,048, $5,088 and $4,111, respectively. The total interest payable balance as of December 31, 2010 and 2009 is $9,830 and $21,878, respectively. The Company recorded no liability for penalties. It is not anticipated that the total amounts of unrecognized tax benefits will significantly increase within twelve months of the reporting date.

The Company’s federal income tax returns have been examined by the Internal Revenue Service and closing agreements have been executed through 2004. The examination for the years 2005 through 2006 have been completed and resulted in tax return adjustments that are currently being appealed. The Company believes that there are adequate defenses against or sufficient provisions established related to any open or contested tax positions. An examination is currently underway for the years 2007 and 2008.

94

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

8. Policy and Contract Attributes

Participating life insurance policies were issued by the Company which entitle policyholders to a share in the earnings of the participating policies, provided that a dividend distribution, which is determined annually based on mortality and persistency experience of the participating policies, is authorized by the Company. Participating insurance constituted approximately 0.06% and 0.07% of ordinary life insurance in force at December 31, 2010 and 2009, respectively.

For the years ended December 31, 2010, 2009 and 2008, premiums for life participating policies were $18,274, $21,721 and $18,433, respectively. The Company accounts for its policyholder dividends based on dividend scales and experience of the policies. The Company paid dividends in the amount of $10,074, $11,010 and $12,165 to policyholders during 2010, 2009 and 2008, respectively, and did not allocate any additional income to such policyholders.

A portion of the Company’s policy reserves and other policyholders’ funds (including separate account liabilities) relates to liabilities established on a variety of the Company’s annuity and deposit fund products. There may be certain restrictions placed upon the amount of funds that can be withdrawn without penalty. The amount of reserves on these products, by withdrawal characteristics, is summarized as follows:

	December 31 2010					December 31 2009
	Amount		Percent			Amount		Percent
Subject to discretionary withdrawal
With fair value adjustment	$	2,074,251		3	%	$	2,362,527		3	%
At book value less surrender charge of 5% or more		11,051,155		15			12,077,452		17
At fair value		30,171,132		41			24,823,739		35
Total with adjustment or at fair value		43,296,538		59			39,263,718		55
At book value without adjustment (with minimal or no charges or adjustments)		13,913,541		19			13,767,281		19
Not subject to discretionary withdrawal		16,081,041		22			18,345,290		26
Total annuity reserves and deposit fund liabilities - before reinsurance		73,291,120		100	%		71,376,289		100	%
Less reinsurance ceded		18,062,445					18,657,485
Net annuity reserves and deposit fund liabilities	$	55,228,675				$	52,718,804

95

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

8. Policy and Contract Attributes (continued)

Included in the liability for deposit-type contracts at December 31, 2010 and 2009 are $413,274 and $468,917, respectively, of funding agreements issued by an affiliate to special purpose entities in conjunction with non-recourse medium-term note programs. Under these programs, the proceeds from each note series issuance are used to purchase a funding agreement from an affiliated Company which secures that particular series of notes. The funding agreement is reinsured to the Company. In general, the payment terms of the note series match the payment terms of the funding agreement that secures that series. Claims for principal and interest for these funding agreements are afforded equal priority as other policyholders.

At December 31, 2010, the contractual maturities were as follows:

Year	Amount
2011	$	125,606
2012		54,233
2013		—
2014		233,434
2015		—
Thereafter		—

The Company’s liability for deposit-type contracts includes GIC’s and funding agreements assumed from MLIC. The liabilities assumed are $1,896,737 and $2,702,888 at December 31, 2010 and 2009, respectively.

Certain separate and variable accounts held by the Company relate to individual variable life insurance policies. The benefits provided on the policies are determined by the performance and/or fair value of the investments held in the separate account. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative. The assets of these separate accounts are carried at fair value. The life insurance policies typically provide a guaranteed minimum death benefit.

Certain separate accounts held by the Company represent funds which are administered for pension plans. The assets consist primarily of fixed maturities and equity securities and are carried at fair value. The Company provides a minimum guaranteed return to policyholders of certain separate accounts. Certain other separate accounts do not have any minimum guarantees and the investment risks associated with fair value changes are borne entirely by the policyholder.

96

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

8. Policy and Contract Attributes (continued)

Information regarding the separate accounts of the Company as of and for the years ended December 31, 2010, 2009 and 2008 is as follows:

	Guaranteed Indexed		Nonindexed Guarantee Less Than or Equal to 4%		Nonindexed Guarantee Greater Than 4%		Nonguaranteed Separate Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2010	$	—	$	14,373	$	12,735	$	6,368,599	$	6,395,707
Reserves for separate accounts as of December 31, 2010 with assets at:
Fair value	$	—	$	18,416	$	45,818	$	35,632,948	$	35,697,182
Amortized cost		—		589,789		—		—		589,789
Total as of December 31, 2010	$	—	$	608,205	$	45,818	$	35,632,948	$	36,286,971
Reserves for separate accounts by withdrawal characteristics as of December 31, 2010:
Subject to discretionary withdrawal:
With fair value adjustment	$	—	$	80,801	$	—	$	—	$	80,801
At fair value		—		—		—		35,595,332		35,595,332
At book value without fair value adjustment and with current surrender charge of less than 5%		—		508,989		—		—		508,989
Subtotal		—		589,790		—		35,595,332		36,185,122
Not subject to discretionary withdrawal		—		18,415		45,818		37,616		101,849
Total separate account liabilities at December 31, 2010	$	—	$	608,205	$	45,818	$	35,632,948	$	36,286,971

97

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

8. Policy and Contract Attributes (continued)

	Guaranteed Indexed		Nonindexed Guarantee Less  Than or Equal to 4%		Nonindexed Guarantee Greater Than 4%		Nonguaranteed Separate Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2009	$	—	$	25,111	$	11,535	$	4,277,875	$	4,314,521
Reserves for separate accounts as of December 31, 2009 with assets at:
Fair value	$	—	$	23,701	$	43,846	$	30,630,714	$	30,698,261
Amortized cost		—		564,835		—		—		564,835
Total as of December 31, 2009	$	—	$	588,536	$	43,846	$	30,630,714	$	31,263,096
Reserves for separate accounts by withdrawal characteristics as of December 31, 2009:
Subject to discretionary withdrawal:
With fair value adjustment	$	—	$	76,570	$	—	$	—	$	76,570
At fair value		—		—		—		30,630,714		30,630,714
At book value without fair value adjustment and with current surrender charge of less than 5%		—		488,265		—		—		488,265
Subtotal		—		564,835		—		30,630,714		31,195,549
Not subject to discretionary withdrawal		—		23,701		43,846		—		67,547
Total separate account liabilities at December 31, 2009	$	—	$	588,536	$	43,846	$	30,630,714	$	31,263,096

98

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

8. Policy and Contract Attributes (continued)

	Guaranteed Indexed		Nonindexed Guarantee Less Than or Equal to 4%		Nonindexed Guarantee Greater Than 4%		Nonguaranteed Separate Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2008	$	—	$	63,549	$	36,534	$	4,145,459	$	4,245,542
Reserves for separate accounts as of December 31, 2008 with assets at:
Fair value	$	—	$	32,841	$	351,543	$	23,812,058	$	24,196,442
Amortized cost		—		548,144		—		—		548,144
Total as of December 31, 2008	$	—	$	580,985	$	351,543	$	23,812,058	$	24,744,586
Reserves for separate accounts by withdrawal characteristics as of December 31, 2008:
Subject to discretionary withdrawal:
With fair value adjustment	$	—	$	61,733	$	—	$	—	$	61,733
At fair value		—		—		—		23,812,058		23,812,058
At book value without fair value adjustment and with current surrender charge of less than 5%		—		486,411		—		—		486,411
Subtotal		—		548,144		—		23,812,058		24,360,202
Not subject to discretionary withdrawal		—		32,841		351,543		—		384,384
Total separate account liabilities at December 31, 2008	$	—	$	580,985	$	351,543	$	23,812,058	$	24,744,586

99

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

8. Policy and Contract Attributes (continued)

A reconciliation of the amounts transferred to and from the Company’s separate accounts is presented below:

	Year Ended December 31
	2010			2009			2008
Transfer as reported in the summary of operations of the separate accounts statement:
Transfers to separate accounts	$	6,369,429		$	4,414,472		$	4,199,455
Transfers from separate accounts		(4,622,672	)		(2,297,193	)		(3,658,761	)
Net transfers to separate accounts		1,746,757			2,117,279			540,694
Miscellaneous reconciling adjustments		(82,626	)		(270	)		(11,259	)
Net transfers as reported in the statement of operations of the life, accident and health annual statement	$	1,664,131		$	2,117,009		$	529,435

The legal insulation of separate account assets prevents such assets from being generally available to satisfy claims resulting from the general account. At December 31, 2010 and 2009, the Company’s separate account statement included legally insulated assets of $38,370,952 and $33,205,532, respectively. The assets legally insulated from general account claims at December 31, 2010 are attributed to the following products:

Product	Legally Insulated Assets
Group annuities	$	12,233,633
Variable annuities		18,848,339
Fixed universal life		555,267
Variable universal life		6,472,224
Variable life		173,383
Modified separate accounts		88,106
Total separate account assets	$	38,370,952

100

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

8. Policy and Contract Attributes (continued)

Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. As of December 31, 2010, the general account of the Company had a maximum guarantee for separate account liabilities of $1,954,169. To compensate the general account for the risk taken, the separate account paid risk charges of $107,662 to the general account in 2010. As of December 31, 2010, the general account of the Company had paid $76,405 toward separate account guarantees.

The Company reported guaranteed separate account assets at amortized cost in the amount of $68,840 based upon the prescribed practice granted by the State of Iowa as described in Note 2. These assets had a fair value of $71,653 at December 31, 2010, which would have resulted in an unrealized gain of $2,813 had these assets been reported at fair value.

The Company reported additional separate account assets at amortized cost in the amount of $505,926 due to a practice prescribed by the State of Iowa, as discussed in Note 2. These assets had a fair value of $528,910 at December 31, 2010, which would have resulted in an unrealized gain of $22,984 had these assets been reported at fair value.

The Company does not participate in securities lending transactions within the separate account.

Effective December 31, 2009, the Company adopted Actuarial Guideline XLIII (AG 43), which replaces Actuarial Guidelines 34 and 39. AG 43 specifies statutory reserve requirements for variable annuity contracts with benefit guarantees (VACARVM) and without benefit guarantees and related products. The AG 43 reserve calculation includes variable annuity products issued after January 1, 1981. Examples of covered guaranteed benefits include guaranteed minimum accumulation benefits, return of premium death benefits, guaranteed minimum income benefits, guaranteed minimum withdrawal benefits and guaranteed payout annuity floors. The Aggregate Reserve for contracts falling within the scope of AG 43 is equal to the Conditional Tail Expectation (CTE) Amount, but not less than the Standard Scenario Amount (SSA). The Company reported an increase in reserves and a decrease in net income of $17,571 at December 31, 2009, related to the adoption of AG 43 and changes in the underlying assumptions.

To determine the CTE Amount, the Company used 1,000 of the pre-packaged scenarios developed by the American Academy of Actuaries (AAA) produced in October 2005 and prudent estimate assumptions based on Company experience. The SSA was determined using the assumptions and methodology prescribed in AG 43 for determining the SSA.

101

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

8. Policy and Contract Attributes (continued)

At December 31, 2010 and 2009, the Company had variable and separate account annuities with minimum guaranteed benefits as follows:

Benefit and Type of Risk	Subjected Account Value		Amount of Reserve Held		Reinsurance Reserve Credit
December 31, 2010
Minimum guaranteed death benefit	$	9,490,182	$	1,177,396	$	864,478
Minimum guaranteed income benefit		5,577,295		849,211		800,705
Guaranteed premium accumulation fund		136,292		10,717		—
Minimum guaranteed withdrawal benefit		9,433,267		960		960
December 31, 2009
Minimum guaranteed death benefit	$	9,406,064	$	1,253,807	$	918,570
Minimum guaranteed income benefit		5,504,688		892,435		830,185
Guaranteed premium accumulation fund		63,644		8,388		—
Minimum guaranteed withdrawal benefit		6,431,653		56,028		40,560

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, 2010 and 2009, the gross premium and loading amounts related to these assets (which are reported as premiums deferred and uncollected), are as follows:

	Gross			Loading		Net
December 31, 2010
Life and annuity:
Ordinary first-year business	$	14,252		$	479	$	13,773
Ordinary renewal business		482,857			7,405		475,452
Group life direct business		9,163			2,132		7,031
Credit life business		(8,524	)		—		(8,524	)
Reinsurance ceded		(288,150	)		—		(288,150	)
		209,598			10,016		199,582
Accident and health		24,304			—		24,304
	$	233,902		$	10,016	$	223,886

102

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

8. Policy and Contract Attributes (continued)

	Gross			Loading		Net
December 31, 2009
Life and annuity:
Ordinary first-year business	$	12,260		$	325	$	11,935
Ordinary renewal business		528,884			12,610		516,274
Group life direct business		15,896			2,309		13,587
Credit life business		(12,865	)		—		(12,865	)
Reinsurance ceded		(264,249	)		—		(264,249	)
		279,926			15,244		264,682
Accident and health		15,520			—		15,520
	$	295,446		$	15,244	$	280,202

The Company anticipates investment income as a factor in the premium deficiency calculation, in accordance with SSAP No. 54, Individual and Group Accident and Health Contracts. At December 31, 2010 and 2009, the Company had insurance in force aggregating $465,525,557 and $361,829,973, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the Insurance Division, Department of Commerce, of the State of Iowa. The Company established policy reserves of $907,228 and $675,762 to cover these deficiencies at December 31, 2010 and 2009, respectively.

For indeterminate premium products, a full schedule of current and anticipated premium rates is developed at the point of issue. Premium rate adjustments are considered when anticipated future experience foretells deviations from the original profit standards. The source of deviation (mortality, persistency, expense, etc.) is an important consideration in the re-rating decision as well as the potential effect of a rate change on the future experience of the existing block of business.

9. Capital and Surplus

The Company is subject to limitations, imposed by the State of Iowa, on the payment of dividends to its shareholders. Generally, dividends during any twelve-month period may not be paid, without prior regulatory approval, in excess of the greater of (a) 10 percent of the Company’s statutory surplus as of the preceding December 31, or (b) the Company’s statutory gain from operations before net realized capital gains (losses) on investments for the preceding year. Subject to the availability of unassigned surplus at the time of such dividend, the maximum payment which may be made in 2011, without the prior approval of insurance regulatory authorities, is $474,517.

103

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

9. Capital and Surplus (continued)

Prior to merging into the Company during 2009, IFLIC was partially owned by unaffiliated participating common shareholders. At December 31, 2008, IFLIC had 3,000 participating common shares authorized and 1,500 shares issued and outstanding. Participating shareholders’ surplus is segregated from unassigned surplus on the balance sheet to disclose the surplus required by mandatory participating voting common stock redemption provisions of the Company bylaws. At December 31, 2008, IFLIC had Participating shareholders’ surplus of $378. Participating common shareholders were redeemed for cash consideration of $421 during 2009 prior to the merger of IFLIC into the Company, resulting in a reduction of common stock and additional paid-in capital of $2 each and a reduction of unassigned surplus of $417.

On December 30, 2009, the Company received a capital contribution of $500,000 from its parent company.

The Company paid a common stock dividend of $1,260,830 to its common stock shareholder, TIHI on December 23, 2010. The Company paid preferred stock dividends of $36,260 and $102,910 to its preferred stock shareholders, AEGON and Transamerica, respectively, on December 23, 2010.

The Company paid a dividend to its parent company of $10,031 in the form of 1,000 shares of stock of TPIC on June 25, 2009.

On December 31, 2008, the Company received a contribution of $9,300 from its parent company in the form of 1,000 shares of TPIC. Prior to the merger of LIICA into the Company, LIICA received a capital contribution from its parent, AEGON of $408,438 on June 2, 2008. On June 3, 2008, LIICA repurchased 504,033 of its Series A preferred shares for $392,000 from AEGON. Net impact to gross paid-in and contributed surplus for the Company was $16,438. The Company received a capital contribution of $481,500 from its parent company, TIHI, on December 30, 2008.

The Company paid a common stock dividend of $268,580 to its common stock shareholder, TIHI, on December 29, 2008.

The Company paid preferred stock dividends of $18,750 and $12,670 to its preferred stock shareholders, AEGON and Transamerica, respectively, on December 29, 2008. Prior to its merger with the Company, in conjunction with the redemption of its 504,033 shares of its Series A preferred stock, LIICA paid a dividend of $16,438 to its preferred stock shareholder, AEGON, on June 3, 2008.

104

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

9. Capital and Surplus (continued)

Life and 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 or health insurance company is to be determined based on the various risk factors related to it. At December 31, 2010, the Company meets the minimum RBC requirements.

On September 30, 2002, LIICA received $150,000 from AEGON in exchange for surplus notes. These notes are due 20 years from the date of issuance at an interest rate of 6%, and are subordinate and junior in right of payment to all obligations and liabilities of the Company. In the event of liquidation of the Company, the holders of the issued and outstanding preferred stock shall be entitled to priority only with respect to accumulated but unpaid dividends before the holder of the surplus notes and full payment of the surplus notes shall be made before the holders of common stock become entitled to any distribution of the remaining assets of the Company. The Company received approval from the Insurance Division, Department of Commerce, of the State of Iowa prior to paying quarterly interest payments.

Additional information related to the outstanding surplus notes at December 31, 2010 and 2009 is as follows:

For Year Ending	Balance Outstanding		Interest Paid Current Year		Cumulative Interest Paid		Accrued Interest
2010	$	150,000	$	9,000	$	72,000	$	2,250
2009		150,000		6,750		63,000		2,250

10. Securities Lending

The Company participates in an agent-managed securities lending program. The Company receives collateral equal to 102% of the fair value of the loaned domestic securities as of the transaction date. If the fair value of the collateral is at any time less than 102% of the fair value of the loaned securities, the counterparty is mandated to deliver additional collateral, the fair value of which, together with the collateral already held in connection with the lending transaction, is at least equal to 102% of the fair value of the loaned government or other domestic securities. In the event the Company loans a foreign security and the denomination of the currency of the collateral is other than the denomination of the currency of the loaned foreign security, the Company receives and maintains collateral equal to 105% of the fair value of the loaned security.

105

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

10. Securities Lending (continued)

At December 31, 2010 and 2009, respectively, securities in the amount of $3,841,442 and $827,408 were on loan under securities lending agreements as a part of this program. At December 31, 2010, the collateral the Company received from securities lending activities was in the form of cash and on open terms. This cash collateral is reinvested and is not available for general corporate purposes. The reinvested cash collateral has a fair value of $3,954,149 and $836,069 at December 31, 2010 and 2009, respectively.

The contractual maturities of the securities lending collateral positions are as follows:

	Fair Value
Open	$	3,956,579
30 days or less		—
31 to 60 days		—
61 to 90 days		—
Greater than 90 days		—
Total		3,956,579
Securities received		—
Total collateral received	$	3,956,579

The maturity dates of the reinvested securities lending collateral are as follows:

	Amortized Cost		Fair Value
Open	$	281,436	$	281,436
30 days or less		2,534,617		2,534,617
31 to 60 days		728,905		728,905
61 to 90 days		267,667		267,667
91 to 120 days		22,448		22,217
121 to 180 days		40,525		40,450
181 to 365 days		21,038		21,064
1 to 2 years		15,915		15,552
Greater than 3 years		44,329		42,241
Total		3,956,880		3,954,149
Securities received		—		—
Total collateral reinvested	$	3,956,880	$	3,954,149

106

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

10. Securities Lending (continued)

For securities lending, the Company’s sources of cash that it uses to return the cash collateral is dependent upon the liquidity of the current market conditions. Under current conditions, the Company has securities with a par value of $3,957,791 (fair value of $3,954,149) that are currently tradable securities that could be sold and used to pay for the $3,956,579 in collateral calls that could come due under a worst-case scenario.

11. Retirement and Compensation Plans

The Company’s employees participate in a qualified defined benefit pension plan sponsored by AEGON. The Company has no legal obligation for the plan. The Company recognizes pension expense equal to its allocation from AEGON. The pension expense is allocated among the participating companies based on International Accounting Standards 19 (IAS 19), Accounting for Employee Benefits 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 aggregated $18,324, $17,949 and $16,434 for the years ended December 31, 2010, 2009 and 2008, respectively. The plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974.

The Company’s employees also participate in a 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 $10,390, $9,654 and $9,795, for the years ended December 31, 2010, 2009 and 2008, respectively.

107

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 Service Code. In addition, AEGON has established incentive deferred compensation plans for certain key employees of the Company. The Company’s allocation of expense for these plans for each of the years ended December 31, 2010, 2009 and 2008 was negligible. 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 accrued or 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 plan expenses are charged to affiliates in accordance with an intercompany cost sharing arrangement. The Company expensed $4,609, $4,254 and $1,382 related to these plans for the years ended December 31, 2010, 2009 and 2008, respectively.

12. Related Party Transactions

The Company shares certain officers, employees and general expenses with affiliated companies.

108

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

12. Related Party Transactions (continued)

The Company is party to a common cost allocation service agreement between AEGON companies, in which various affiliated companies may perform specified administrative functions in connection with the operation of the Company, in consideration of reimbursement of actual costs of services rendered. The Company is also party to two additional service agreements with Transamerica Advisors Life Insurance Company of New York (TALICNY) and TFLIC, in which the Company provides services, including accounting, data processing and other professional services, in consideration of reimbursement of the actual costs of services rendered. The Company is also a party to a Management and Administrative and Advisory agreement with AEGON USA Realty Advisors, Inc. whereby the advisor serves as the administrator and advisor for the Company’s mortgage loan operations. AEGON USA Investment Management, LLC acts as a discretionary investment manager under an Investment Management Agreement with the Company. The net amount received by the Company as a result of being a party to these agreements was $46,373, $32,580 and $19,737 during 2010, 2009 and 2008, respectively. Fees charged between affiliates approximate their cost. The Company has an administration service agreement with Transamerica Asset Management, Inc. to provide administrative services to the AEGON/Transamerica Series Trust. The Company received $51,177, $40,040 and $44,122 for these services during 2010, 2009 and 2008, respectively.

Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $67,790, $73,721 and $74,156 for the years ended December 31, 2010, 2009 and 2008, respectively.

At December 31, 2010 and 2009, respectively, the Company reported a net amount of payables to affiliates of $228,137 and $82,670. Terms of settlement require that these amounts be settled within 90 days. Receivables from and payables to affiliates bear interest at the thirty-day commercial paper rate.

109

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

12. Related Party Transactions (continued)

At December 31, 2010, the Company had short-term intercompany notes receivable of $270,000 as follows. In accordance with SSAP No. 25, Accounting for and Disclosures about Transactions with Affiliates and Other Related Parties, these notes are reported as short-term investments.

Receivable from	Amount		Due By	Interest Rate
Transamerica Corporation	$	75,500	July 19, 2011		0.35	%
AEGON		69,500	December 22, 2011		0.25
AEGON		18,000	December 24, 2011		0.25
AEGON		76,000	December 27, 2011		0.25
AEGON		31,000	December 29, 2011		0.25

At December 31, 2009, the Company had short-term intercompany notes receivable of $880,200 as follows. All of these notes were repaid prior to their due date.

Receivable from	Amount		Due By	Interest Rate
AEGON	$	6,600	June 1, 2010		0.30	%
AEGON		14,000	June 2, 2010		0.30
AEGON		17,700	June 15, 2010		0.30
AEGON		6,700	June 19, 2010		0.30
AEGON		39,200	June 24, 2010		0.30
AEGON		20,900	June 25, 2010		0.30
AEGON		67,600	June 26, 2010		0.30
AEGON		7,900	July 2, 2010		0.32
Transamerica Corporation		123,800	July 24, 2010		0.32
AEGON		11,700	July 27, 2010		0.32
AEGON		17,500	July 28, 2010		0.32
AEGON		89,700	July 29, 2010		0.32
AEGON		30,800	July 30, 2010		0.32
AEGON		26,100	October 29, 2010		0.22
AEGON		330,000	December 11, 2010		0.20
AEGON		70,000	December 15, 2010		0.20

During 2010, 2009 and 2008, the Company paid (received) net interest of $142, $(1,193) and $3,223, respectively, to affiliates.

110

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

12. Related Party Transactions (continued)

During 1998, the Company issued life insurance policies to two affiliated companies, covering the lives of certain employees of those affiliates. Aggregate reserves for policies and contracts related to these policies are $143,563 and $138,726 at December 31, 2010 and 2009, respectively.

In prior years, the Company purchased life insurance policies covering the lives of certain employees of the Company from an affiliate. At December 31, 2010 and 2009, the cash surrender value of these policies was $148,756 and $143,644, respectively.

13. Commitments and Contingencies

At December 31, 2010 and 2009, the Company has mortgage loan commitments of $37,624 and $211,491, respectively. The Company has contingent commitments for $457,326 and $686,426 as of December 31, 2010 and 2009, respectively, to provide additional funding for various joint ventures, partnerships, and limited liability companies, which includes LIHTC commitments of $29,934 and $45,413, respectively.

There were no private placement commitments outstanding as of December 31, 2010. Private placement commitments outstanding as of December 31, 2009 were $18,000.

There were no securities being acquired on a “to be announced” (TBA) basis as of December 31, 2010. TBA securities outstanding as of December 31, 2009 were $5,049.

The Company may pledge assets as collateral for derivative transactions. At December 31, 2010 and 2009, the Company has pledged invested assets with a carrying value of $210,686 and $366,806, respectively, and fair value of $208,328 and $400,679, respectively, in conjunction with these transactions. Also in conjunction with the derivative transactions, cash in the amount of $215,045 and securities in the amount of $259 were posted to the Company as of December 31, 2009, which were not included in the financials of the Company. A portion of the cash posted to the Company was reposted as collateral by the Company in the amount of $13,309 as of December 31, 2009.

As mentioned in Note 1, amendments to SSAP No. 91R during 2010 resulted in the cash collateral received from derivative counterparties being recorded on the Company’s balance sheet. The amount of cash collateral posted as of December 31, 2010 was $240,335. In addition, securities in the amount of $104,186 were also posted to the Company as of December 31, 2010, which were not included in the financials of the Company. In accordance with amended SSAP No. 91R, noncash collateral is not to be recognized by the recipient unless that collateral is sold or repledged or the counterparty defaults.

111

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

13. Commitments and Contingencies (continued)

The Company may pledge assets as collateral for transactions involving funding agreements. At December 31, 2010 and 2009, the Company has pledged invested assets with a carrying amount of $182,365 and $243,127, respectively, and fair value of $190,511 and $244,838, respectively, in conjunction with these transactions.

The Company had outstanding funding agreements totaling $4,500,724 and $5,450,716 at December 31, 2010 and 2009, respectively, to the FHLB, and the funds received are reported as deposit-type liabilities per SSAP No. 52, Deposit-Type Contracts. Total reserves are equal to the funding agreements balance. These funding agreements are used for investment spread management purposes and are subject to the same asset/liability management practices as other deposit-type business. All of the funding agreements issued to the FHLB are classified in the general account as it is a general obligation of the Company.

Collateral is required by the FHLB to support repayment of the funding agreements. The amount of pledged collateral at December 31, 2010 and 2009 was $6,607,053 and $6,922,409, respectively. In addition, the FHLB requires their common stock to be purchased. The Company owns $210,250 and $252,525 of FHLB common stock at December 31, 2010 and 2009, respectively. The FHLB has set funding capacity limits on the Company which are significantly higher than the current funding agreement level; however, the FHLB is under no obligation to extend additional capacity.

The Company has issued synthetic GIC contracts to benefit plan sponsors on assets totaling $2,034,558 and $4,201,338 as of December 31, 2010 and 2009, respectively. A synthetic GIC is an off-balance sheet fee-based product sold primarily to tax qualified plans. The plan sponsor retains ownership and control of the related plan assets. The Company provides book value benefit responsiveness in the event that qualified plan benefit requests exceed plan cash flows. In certain contracts, the Company agrees to make advances to meet benefit payment needs and earns a market interest rate on these advances. The periodically adjusted contract-crediting rate is the means by which investment and benefit responsive experience is passed through to participants. In return for the book value benefit responsive guarantee, the Company receives a premium that varies based on such elements as benefit responsive exposure and contract size. The Company underwrites the plans for the possibility of having to make benefit payments and also must agree to the investment guidelines to ensure appropriate credit quality and cash flow. A contract reserve of $3,000 has been established for the possibility of unexpected benefit payments at below market interest rates at December 31, 2010 and 2009.

The Company has guaranteed that TFLIC, an affiliate, will maintain capital and surplus amounts in excess of the statutory minimum requirements of $3,000. At December 31, 2010, TFLIC had capital and surplus of $794,667. The Company has recorded no liability for this guarantee.

112

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

13. Commitments and Contingencies (continued)

The Company has provided a guarantee for the performance of an affiliated noninsurance entity that was involved in guaranteed sales of investments in LIHTC partnerships. These partnerships are partially or majority owned by a noninsurance subsidiary of the Company for which a third party is the primary investor. The balance of the investor’s capital account covered by this transaction is $349,609 as of December 31, 2010. The nature of the obligation is to provide the investor with a minimum guaranteed annual and cumulative return on their contributed capital. The Company is not at risk for changes in tax law or the investor’s inability to fully utilize tax benefits. Accordingly, the Company believes the likelihood of having to make material payments under the guarantee is remote.

As of December 31, 2010 and 2009, the Company had entered into a credit enhancement and a standby liquidity asset purchase agreement on a municipal variable rate demand note facility with commitment amounts of $535 and $1,105, respectively, for which it was paid a fee. Prior to a change in the remarketing agent, this agreement was drawn upon and repaid during 2009. The Company does not believe there will be an additional draw under this agreement. However, if there were, any such draws would be purchases of municipal bonds, which would be repaid with interest.

At December 31, 2009, the Company had entered into multiple agreements with commitment amounts of $142,425 for which it was paid a fee to provide credit enhancement and standby liquidity asset purchase agreements on municipal variable rate demand note facilities. A draw was made under one of these liquidity facilities in January 2008 for approximately $1,900, which was repaid in full with interest. This agreement was unwound during 2010, so the Company no longer holds a contingent reserve related to this agreement as of December 31, 2010.

The Company serves as guarantor for an affiliate’s guarantees of the principal value of loans made to entities which invest in certain investment funds. There was no notional amount associated with these guarantees as of December 31, 2010 or 2009. The investment funds’ assets are restricted based on established investment guidelines and are required, upon a decline in value below a formula based threshold, to either replace the assets with fixed income instruments or sell assets and pay down the loan in order to minimize the guarantor’s principal protection liability. There are no expected payments associated with these guarantees.

The Company has also provided a guarantee for the obligations of noninsurance affiliates who have accepted assignments of structured settlement payment obligations from other insurers and purchase structured settlement insurance policies from subsidiaries of the Company that match those obligations. There are no expected payments associated with this guarantee.

113

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

13. Commitments and Contingencies (continued)

The Company is a party to legal proceedings involving a variety of issues incidental to its business, including class actions. Lawsuits may be brought in nearly any federal or state court in the United States or in an arbitral forum. In addition, there continues to be significant federal and state regulatory activity relating to financial services companies. The Company’s legal proceedings are subject to many variables, and given its complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and punitive damages, and injunctive relief, it is management’s opinion that damages arising from such demands will not be material to the Company’s financial position.

The Company recorded a one-time provision to general insurance expenses of $140,000 for settlement of a dispute related to a Bank Owned Life Insurance (BOLI) policy in the United States. Subsequent to the disruption in the credit market, which affected the investment value of the policy’s underlying assets, a suit was filed alleging that the policy terms were not sufficiently fulfilled by AEGON.

The Company is subject to insurance guaranty laws in the states in which it writes business. These laws provide for assessments against insurance companies for the benefit of policyholders and claimants in the event of insolvency of other insurance companies. Assessments are charged to operations when received by the Company, except where right of offset against other taxes paid is allowed by law. Amounts available for future offsets are recorded as an asset on the Company’s balance sheet. The future obligation for known insolvencies has been accrued based on the most recent information available from the National Organization of Life and Health Insurance Guaranty Associations. Potential future obligations for unknown insolvencies are not determinable by the Company and are not required to be accrued for financial reporting purposes. The Company has established a reserve of $37,041 and $34,814 and an offsetting premium tax benefit of $3,550 and $4,309 at December 31, 2010 and 2009, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund expense was $2,465, $460 and $1,720, for the years ended December 31, 2010, 2009 and 2008, respectively.

14. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities

The Company has recorded liabilities of $200,977 and $632,109 for municipal repurchase agreements as of December 31, 2010 and 2009, respectively. The repurchase agreements are collateralized by securities with book values of $235,220 and $637,109 as of December 31, 2010 and 2009, respectively. These securities have maturity dates that range from 2011 to 2029 and have a weighted average interest rate of 5.37%.

The Company did not participate in dollar repurchase agreements at December 31, 2010 or 2009.

114

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

14. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities (continued)

In the course of the Company’s asset management, securities are sold and reacquired within 30 days of the sale date to enhance the Company’s yield on its investment portfolio. The details by NAIC designation 3 or below of securities sold during 2010 and reacquired within 30 days of the sale date are:

	Number of Transactions		Book Value  of Securities Sold		Cost of Securities Repurchased		Gain/(Loss)
Bonds:
NAIC 3		1	$	1,840	$	1,879	$	(25	)
NAIC 4		1		4,177		4,728		646
NAIC 5		4		2,453		2,590		190
NAIC 6		6		4,232		4,460		176

15. Reconciliation to Statutory Statement

The 2008 Annual Statement did not include the appropriate tax effect on the mark to market income on a derivative as of December 31, 2008. This item was adjusted for in the 2008 financial statements, as discussed further below, and was corrected through federal income tax expense in the 2009 Annual Statement. There were no reconciling items at December 31, 2010 or for the year then ended. The following is a reconciliation of amounts previously reported to the Insurance Division, Department of Commerce, of the State of Iowa in the 2009 Annual Statement, to those reported in the accompanying statutory-basis financial statements:

	December 31, 2009
Statement of Operations:
Statutory net loss as reported in the Company’s Annual Statement of Operations:	$	(99,471	)
Increase federal income tax benefit		93,046
Total statutory net loss per financial statements	$	(6,425	)

115

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

15. Reconciliation to Statutory Statement (continued)

The following is a reconciliation of amounts previously reported to the Insurance Division, Department of Commerce, of the State of Iowa in the 2008 Annual Statement, to those reported in the accompanying statutory-basis financial statements:

	December 31, 2008
Statement of Operations:
Statutory net loss as reported in the Company’s Annual Statement of Operations:	$	(528,468	)
Reduce federal income tax benefit		(93,046	)
Restatement to reflect IFLIC merger		96
Total statutory net income (loss) per financial statements	$	(621,418	)

16. Subsequent Events

The financial statements are adjusted to reflect events that occurred between the balance sheet date and the date when the financial statements are available to be issued, April 8, 2011, provided they give evidence of conditions that existed at the balance sheet date (Type I). Events that are indicative of conditions that arose after the balance sheet date are disclosed, but do not result in an adjustment of the financial statements themselves (Type II). As of April 8, 2011, the Company has not identified any Type I or Type II subsequent events for the year ended December 31, 2010.

17. Unaudited Subsequent Events

Subject to regulatory approval, the Company will be a party to a series of reinsurance agreements to support the divestment of its life reinsurance business to SCOR that will transpire either in the second or third quarter of 2011. In conjunction with this transaction, certain blocks of business will be recaptured from affiliates. The net surplus impact to the Company will not be known until the transaction is closed with SCOR; however the negative surplus impact is expected to be approximately $400,000.

116

Transamerica Life Insurance Company

Summary of Investments – Other Than

Investments in Related Parties

(Dollars in Thousands)

December 31, 2010

SCHEDULE I

Type of Investment	Cost (1)		Market Value		Amount at Which Shown in the Balance Sheet
Fixed maturities
Bonds:
United States government and government agencies and authorities	$	3,920,855	$	3,927,101	$	3,920,855
States, municipalities and political subdivisions		1,069,997		1,081,867		1,069,997
Foreign governments		717,413		737,784		717,413
Hybrid securities		1,559,172		1,349,230		1,559,172
All other corporate bonds		39,653,906		39,880,621		39,653,906
Preferred stocks		123,925		121,878		123,925
Total fixed maturities		47,045,268		47,098,481		47,045,268
Equity securities
Common stocks:
Industrial, miscellaneous and all other		307,132		358,631		358,631
Total equity securities		307,132		358,631		358,631
Mortgage loans on real estate		8,027,115				8,027,115
Real estate		120,965				120,965
Policy loans		746,677				746,677
Other long-term investments		1,399,892				1,399,892
Cash, cash equivalents and short-term investments		1,303,081				1,303,081
Total investments	$	58,950,130			$	59,001,629

(1) Original cost of equity securities and, as to fixed maturities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts.

117

Transamerica Life Insurance Company

Supplementary Insurance Information

(Dollars in Thousands)

SCHEDULE III

	Future Policy Benefits and Expenses		Unearned Premiums		Policy and Contract Liabilities		Premium Revenue		Net Investment Income*		Benefits, Claims Losses and Settlement Expenses		Other Operating Expenses*
Year ended December 31, 2010
Individual life	$	14,015,969	$	—	$	256,354	$	1,411,484	$	993,846	$	1,938,525	$	1,109,156
Individual health		2,906,758		102,601		137,513		492,364		199,500		437,569		150,292
Group life and health		1,413,616		15,466		96,571		330,139		75,398		281,807		114,825
Annuity		17,990,509		—		26,915		6,931,132		1,650,427		5,616,190		3,283,491
	$	36,326,852	$	118,067	$	517,353	$	9,165,119	$	2,919,171	$	8,274,091	$	4,657,764
Year ended December 31, 2009
Individual life	$	13,898,182	$	—	$	273,389	$	1,286,997	$	900,907	$	1,408,720	$	986,135
Individual health		2,801,188		116,341		121,468		470,438		179,158		411,103		158,964
Group life and health		1,409,957		16,322		103,431		344,829		92,181		270,852		135,934
Annuity		19,080,480		—		22,049		5,997,868		1,900,911		1,404,938		6,767,121
	$	37,189,807	$	132,663	$	520,337	$	8,100,132	$	3,073,157	$	3,495,613	$	8,048,154
Year ended December 31, 2008
Individual life	$	14,091,494	$	—	$	235,075	$	1,945,171	$	1,004,973	$	1,663,836	$	4,643,176
Individual health		2,663,242		133,885		125,768		501,797		189,285		425,938		183,199
Group life and health		1,416,556		17,766		108,339		370,647		102,526		300,950		178,562
Annuity		23,412,004		—		15,183		4,700,329		2,590,142		5,947,854		9,408,003
	$	41,583,296	$	151,651	$	484,365	$	7,517,944	$	3,886,926	$	8,338,578	$	14,412,940

* 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.

118

Transamerica Life Insurance Company

Reinsurance

(Dollars in Thousands)

SCHEDULE IV

	Gross Amount		Ceded to Other Companies		Assumed From Other Companies		Net Amount		Percentage of Amount Assumed to Net
Year ended December 31, 2010
Life insurance in force	$	459,820,666	$	969,368,385	$	731,229,732	$	221,682,013		330	%
Premiums:
Individual life		2,631,499		3,101,663		1,881,648		1,411,484		133	%
Individual health		536,163		154,031		110,232		492,364		22	%
Group life and health		398,638		87,932		19,433		330,139		6	%
Annuity		7,197,141		334,516		68,507		6,931,132		1	%
	$	10,763,441	$	3,678,142	$	2,079,820	$	9,165,119		23	%
Year ended December 31, 2009
Life insurance in force	$	450,746,436	$	908,732,362	$	677,546,211	$	219,560,285		309	%
Premiums:
Individual life	$	2,466,652	$	2,799,049	$	1,619,394	$	1,286,997		126	%
Individual health		540,470		189,419		119,387		470,438		25	%
Group life and health		389,911		74,823		29,741		344,829		9	%
Annuity		9,312,898		3,355,296		40,266		5,997,868		1	%
	$	12,709,931	$	6,418,587	$	1,808,788	$	8,100,132		22	%
Year ended December 31, 2008
Life insurance in force	$	443,518,542	$	837,623,161	$	634,973,061	$	240,868,442		264	%
Premiums:
Individual life	$	2,471,167	$	2,071,576	$	1,545,580	$	1,945,171		79	%
Individual health		573,587		205,331		133,541		501,797		27	%
Group life and health		422,904		83,809		31,552		370,647		9	%
Annuity		9,841,785		5,242,316		100,860		4,700,329		2	%
	$	13,309,443	$	7,603,032	$	1,811,533	$	7,517,944		24	%

119

FINANCIAL STATEMENTS

Transamerica Life Insurance Company

Separate Account VA B

Year Ended December 31, 2010

Transamerica Life Insurance Company

Separate Account VA B

Financial Statements

Year Ended December 31, 2010

Contents

Report of Independent Registered Public Accounting Firm	1
Financial Statements
Statements of Assets and Liabilities	2
Statements of Operations	200
Statements of Changes in Net Assets	222
Notes to Financial Statements	265

Report of Independent Registered Public Accounting Firm

The Board of Directors and Contract Owners

of Separate Account VA B,

Transamerica Life Insurance Company

We have audited the accompanying statements of assets and liabilities of the subaccounts of Transamerica Life Insurance Company Separate Account VA B (the Separate Account) (comprised of the Transamerica Asset Allocation – Growth VP, Transamerica Asset Allocation – Conservative VP, Transamerica Asset Allocation – Moderate VP, Transamerica Asset Allocation – Moderate Growth VP, Transamerica WMC Diversified Growth VP, Transamerica MFS International Equity VP, Transamerica Clarion Global Real Estate Securities VP, Transamerica Diversified Equity VP, Transamerica Balanced VP, Transamerica Jennison Growth VP, Transamerica JPMorgan Enhanced Index VP, Transamerica AEGON High Yield Bond VP, Transamerica Growth Opportunities VP, Transamerica BlackRock Large Cap Value VP, Transamerica PIMCO Total Return VP, Transamerica Focus VP, Transamerica AllianceBernstein Dynamic Allocation VP, Transamerica U.S. Government Securities VP, Transamerica U.S. Government Securities VP – PAM Fund – SC, Transamerica T. Rowe Price Small Cap VP, Transamerica Morgan Stanley Active International Allocation VP, Transamerica Multi Managed Large Cap Core VP, Transamerica Money Market VP, Transamerica Morgan Stanley Mid-Cap Growth VP, Transamerica International Moderate Growth VP – SC, Transamerica Small/Mid Cap Value VP, Transamerica Index 50 VP – SC, Transamerica Index 75 VP – SC, Transamerica Efficient Markets VP – SC, Transamerica BlackRock Global Allocation VP – SC, Transamerica BlackRock Tactical Allocation VP – SC, Transamerica ProFunds UltraBear VP – SC OAM, Transamerica Foxhall Global Growth VP – SC, Transamerica Foxhall Global Conservative VP – SC, Transamerica Foxhall Global Hard Asset VP – SC, Transamerica Foxhall Emerging Markets/Pacific Rim VP – SC, Transamerica Hanlon Growth VP – SC, Transamerica Hanlon Growth and Income VP-SC, Transamerica Hanlon Balanced VP – SC, Transamerica Hanlon Managed Income VP – SC, Transamerica Index 35 VP – SC, Transamerica Index 100 VP – SC, Transamerica JPMorgan Mid Cap Value VP – SC, Invesco V.I. Basic Value, Invesco V.I. Capital Appreciation, AllianceBernstein Growth & Income, AllianceBernstein Large Cap Growth, AllianceBernstein Balanced Wealth Strategy, Janus Aspen-Enterprise, Janus Aspen Perkins-Mid Cap Value, Janus Aspen-Worldwide, MFS^® New Discovery, MFS^® Total Return, Fidelity VIP Contrafund^®, Fidelity VIP Equity-Income, Fidelity VIP Growth, Fidelity VIP Growth Opportunities, Fidelity VIP Mid Cap, Fidelity VIP Value Strategies, Fidelity VIP Balanced, Franklin Income Securities, Mutual Shares Securities, Templeton Foreign Securities, Franklin Templeton Founding Funds Allocation, American Funds – Asset Allocation Fund, American Funds – Bond Fund, American Funds – Growth Fund, American Funds – Growth-Income Fund, American Funds – International Fund, GE Investments Total Return Fund, MTB Managed Allocation Fund-Moderate Growth II, BlackRock Basic Value V.I., BlackRock High Income V.I., BlackRock Global Allocation V.I., Huntington VA Dividend Capture, Huntington VA Growth, Huntington VA Income Equity, Huntington VA International Equity, Huntington VA Macro 100, Huntington VA Mid Corp America, Huntington VA Mortgage Securities, Huntington VA New Economy, Huntington VA Real Strategies, Huntington VA Rotating Markets, Huntington VA Situs, and Huntington VA Balanced Allocation subaccounts), as of December 31, 2010, and the related statements of operations and changes in net assets for the periods indicated thereon. These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Separate Account’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Separate Account’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2010 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 of Transamerica Life Insurance Company Separate Account VA B at December 31, 2010, 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

April 25, 2011

1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Asset Allocation - Growth VP Subaccount		Transamerica Asset Allocation - Conservative VP Subaccount		Transamerica Asset Allocation - Moderate VP Subaccount		Transamerica Asset Allocation - Moderate Growth VP Subaccount
Assets
Investment in securities:
Number of shares - Initial		33,855,478.711		25,975,191.087		51,319,583.024		58,883,756.948
Cost	$	343,847,747	$	244,658,810	$	555,573,433	$	670,602,360
Number of shares - Service		10,394,355.261		38,778,824.553		76,426,504.172		117,093,771.025
Cost	$	89,892,451	$	375,051,955	$	807,408,196	$	1,297,455,774
Investments in mutual funds,
Level 1 quoted prices at net asset value	$	384,349,894	$	663,216,515	$	1,328,832,491	$	1,848,961,932
Receivable for units sold		113		55		—		—
Total assets		384,350,007		663,216,570		1,328,832,491		1,848,961,932
Liabilities
Payable for units redeemed		—		—		607		1
	$	384,350,007	$	663,216,570	$	1,328,831,884	$	1,848,961,931
Net Assets:
Deferred annuity contracts terminable by owners	$	384,350,007	$	663,216,570	$	1,328,831,884	$	1,848,961,931
Total net assets	$	384,350,007	$	663,216,570	$	1,328,831,884	$	1,848,961,931

See accompanying notes.

2

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Asset Allocation - Growth VP Subaccount		Transamerica  Asset Allocation - Conservative VP Subaccount		Transamerica  Asset Allocation - Moderate VP Subaccount		Transamerica  Asset Allocation - Moderate Growth VP Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		5,571,387		7,255,666		12,203,170		13,470,158
M&E - 1.25% - Landmark ML		1,510,307		551,615		2,052,467		2,058,688
M&E - 1.25% - Freedom		43,744		163,609		52,356		103,719
M&E - 1.30% - Landmark		28,290,307		26,990,493		50,939,713		55,000,176
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		778,859		1,326,400		4,977,381		2,596,002
M&E - 1.40% - Landmark		3,793,897		4,588,908		7,684,201		7,013,369
M&E - 1.40% - Landmark ML		4,846,990		2,652,875		3,953,357		4,885,137
M&E - 1.40% - Freedom		2,612,124		1,808,229		3,534,650		4,452,731
M&E - 1.50% - Landmark		24,915,038		29,418,615		40,844,824		41,473,572
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		6,276,322		6,280,443		9,966,418		14,063,419
M&E - 1.50% - Freedom		1,426,254		2,221,828		3,844,480		2,430,930
M&E - 1.55% - Landmark		117,065,850		88,315,308		197,310,450		248,589,493
M&E - 1.55% - Landmark ML		12,915,360		13,742,102		27,790,914		26,813,289
M&E - 1.65% - Freedom		9,175,587		3,816,378		9,512,237		19,288,255
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

3

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Asset Allocation - Growth VP Subaccount		Transamerica Asset Allocation - Conservative VP Subaccount		Transamerica Asset Allocation - Moderate VP Subaccount		Transamerica Asset Allocation - Moderate Growth VP Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

4

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Asset Allocation - Growth VP Subaccount		Transamerica Asset Allocation - Conservative VP Subaccount		Transamerica Asset Allocation - Moderate VP Subaccount		Transamerica Asset Allocation - Moderate Growth VP Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.373148	$	1.443418	$	1.462229	$	1.440106
M&E - 1.25% - Landmark ML	$	1.373148	$	1.443418	$	1.462229	$	1.440106
M&E - 1.25% - Freedom	$	0.878403	$	1.057969	$	1.024133	$	0.955289
M&E - 1.30% - Landmark	$	1.367260	$	1.437238	$	1.455947	$	1.433899
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.367260	$	1.437238	$	1.455947	$	1.433899
M&E - 1.40% - Landmark	$	1.355615	$	1.425031	$	1.443528	$	1.421687
M&E - 1.40% - Landmark ML	$	1.355615	$	1.425031	$	1.443528	$	1.421687
M&E - 1.40% - Freedom	$	1.282200	$	1.298163	$	1.330721	$	1.329067
M&E - 1.50% - Landmark	$	1.344067	$	1.412819	$	1.431255	$	1.409570
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.344067	$	1.412819	$	1.431255	$	1.409570
M&E - 1.50% - Freedom	$	1.344067	$	1.412819	$	1.431255	$	1.409570
M&E - 1.55% - Landmark	$	1.338317	$	1.406840	$	1.425170	$	1.403599
M&E - 1.55% - Landmark ML	$	1.338317	$	1.406840	$	1.425170	$	1.403599
M&E - 1.65% - Freedom	$	1.326967	$	1.394894	$	1.413048	$	1.391624
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.310081	$	1.377141	$	1.395050	$	1.373976
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.310081	$	1.377141	$	1.395050	$	1.373976

See accompanying notes.

5

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Asset Allocation - Growth VP Subaccount		Transamerica Asset Allocation - Conservative VP Subaccount		Transamerica Asset Allocation - Moderate VP Subaccount		Transamerica Asset Allocation - Moderate Growth VP Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	1.282529	$	1.348157	$	1.365731	$	1.345027
M&E - 2.05% - Landmark ML	$	1.282529	$	1.348157	$	1.365731	$	1.345027
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

6

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Asset Allocation - Growth VP Subaccount		Transamerica Asset Allocation - Conservative VP Subaccount		Transamerica Asset Allocation - Moderate VP Subaccount		Transamerica Asset Allocation - Moderate Growth VP Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		23,634,016		137,437,354		253,489,658		386,181,431
M&E - 1.30% - Suntrust Landmark		1,877,734		2,511,805		10,302,545		11,079,283
M&E - 1.30% - Landmark Select		622,958		2,580,009		14,374,117		21,326,932
M&E - 1.30% - Huntington Landmark		372,699		4,316,340		11,239,943		12,775,886
M&E - 1.30% - Landmark ML		3,348,226		14,314,804		29,308,159		44,952,443
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		12,335,172		22,083,756		60,086,388		107,293,686
M&E - 1.50% - Suntrust Landmark		224,651		746,917		3,231,910		3,497,630
M&E - 1.50% - Landmark Select		254,743		357,876		1,928,022		2,714,264
M&E - 1.50% - Huntington Landmark		54,760		1,150,506		4,496,664		9,257,503
M&E - 1.50% - Landmark ML		916,228		2,930,640		5,424,598		14,715,312
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		1,498,895		3,926,849		7,210,743		5,993,138
M&E - 1.70% - Freedom		1,928,764		35,658,890		55,315,721		68,479,192
M&E - 1.80% - Landmark		3,121,190		27,055,798		34,313,116		48,528,996
M&E - 1.80% - Suntrust Landmark		—		215,274		174,633		72,006
M&E - 1.80% - Landmark Select		—		578,660		2,032,674		621,169
M&E - 1.80% - Huntington Landmark		15,163		55,142		561,558		1,788,429
M&E - 1.80% - Landmark ML		166,087		642,059		1,519,389		2,818,639

See accompanying notes.

7

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Asset Allocation - Growth VP Subaccount		Transamerica Asset Allocation - Conservative VP Subaccount		Transamerica Asset Allocation - Moderate VP Subaccount		Transamerica Asset Allocation - Moderate Growth VP Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		801,079		1,441,980		2,549,565		3,682,609
M&E - 1.90% - Freedom		745,881		4,189,723		13,424,691		23,739,853
M&E - 1.95% - Landmark		—		7,634,315		5,880,502		12,497,748
M&E - 1.95% - Landmark Select		—		—		—		35,435
M&E - 1.95% - Huntington Landmark		—		—		247,750		66,427
M&E - 1.95% - Landmark ML		—		586,839		685,433		7,126,145
M&E - 2.00% - Landmark		674,960		5,944,969		10,120,503		14,684,325
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		120,690		144,138
M&E - 2.00% - Huntington Landmark		—		—		89,089		122,091
M&E - 2.00% - Landmark ML		—		178,610		679,577		1,143,630
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		2,939,680		1,873,931		2,282,409		4,665,740
M&E - 2.20% - Freedom		3,635,044		481,858		3,055,464		5,320,819
M&E - 2.30% - Landmark		—		83,776		62,844		20,339
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		4,809		2,234,646		1,416,893
M&E - 2.45% - Landmark		—		531,893		478,252		1,160,665
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

8

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Asset Allocation - Growth VP Subaccount		Transamerica Asset Allocation - Conservative VP Subaccount		Transamerica Asset Allocation - Moderate VP Subaccount		Transamerica Asset Allocation - Moderate Growth VP Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	1.613207	$	1.504008	$	1.578099	$	1.612582
M&E - 1.30% - Suntrust Landmark	$	1.613207	$	1.504008	$	1.578099	$	1.612582
M&E - 1.30% - Landmark Select	$	1.613207	$	1.504008	$	1.578099	$	1.612582
M&E - 1.30% - Huntington Landmark	$	0.885127	$	1.051947	$	1.016968	$	0.955194
M&E - 1.30% - Landmark ML	$	1.613207	$	1.504008	$	1.578099	$	1.612582
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.588963	$	1.481436	$	1.554379	$	1.588408
M&E - 1.50% - Suntrust Landmark	$	1.588963	$	1.481436	$	1.554379	$	1.588408
M&E - 1.50% - Landmark Select	$	1.588963	$	1.481436	$	1.554379	$	1.588408
M&E - 1.50% - Huntington Landmark	$	0.879362	$	1.045101	$	1.010327	$	0.948989
M&E - 1.50% - Landmark ML	$	1.588963	$	1.481436	$	1.554379	$	1.588408
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	1.571048	$	1.464725	$	1.536886	$	1.570475
M&E - 1.70% - Freedom	$	0.941201	$	1.092908	$	1.072710	$	1.011264
M&E - 1.80% - Landmark	$	1.553408	$	1.448252	$	1.519577	$	1.552816
M&E - 1.80% - Suntrust Landmark	$	1.553408	$	1.448252	$	1.519577	$	1.552816
M&E - 1.80% - Landmark Select	$	1.553408	$	1.448252	$	1.519577	$	1.552816
M&E - 1.80% - Huntington Landmark	$	0.870816	$	1.034951	$	1.000538	$	0.939767
M&E - 1.80% - Landmark ML	$	1.553408	$	1.448252	$	1.519577	$	1.552816

See accompanying notes.

9

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Asset Allocation - Growth VP Subaccount		Transamerica Asset Allocation - Conservative VP Subaccount		Transamerica Asset Allocation - Moderate VP Subaccount		Transamerica Asset Allocation - Moderate Growth VP Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.547531	$	1.442811	$	1.513862	$	1.546964
M&E - 1.90% - Freedom	$	0.932582	$	1.082938	$	1.062879	$	1.002038
M&E - 1.95% - Landmark	$	—	$	1.279792	$	1.322304	$	1.329232
M&E - 1.95% - Landmark Select	$	—	$	1.037227	$	1.022550	$	0.990224
M&E - 1.95% - Huntington Landmark	$	—	$	1.037227	$	1.022550	$	0.990224
M&E - 1.95% - Landmark ML	$	—	$	1.037227	$	1.022550	$	0.990224
M&E - 2.00% - Landmark	$	1.530148	$	1.426614	$	1.496877	$	1.529645
M&E - 2.00% - Suntrust Landmark	$	1.530148	$	1.426614	$	1.496877	$	1.529645
M&E - 2.00% - Landmark Select	$	1.530148	$	1.426614	$	1.496877	$	1.529645
M&E - 2.00% - Huntington Landmark	$	0.865161	$	1.028240	$	0.994046	$	0.933681
M&E - 2.00% - Landmark ML	$	1.530148	$	1.426614	$	1.496877	$	1.529645
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	1.513002	$	1.410588	$	1.480090	$	1.512466
M&E - 2.20% - Freedom	$	0.919857	$	1.068157	$	1.048391	$	0.988358
M&E - 2.30% - Landmark	$	1.496046	$	1.394793	$	1.463531	$	1.495519
M&E - 2.30% - Suntrust Landmark	$	1.496046	$	1.394793	$	1.463531	$	1.495519
M&E - 2.30% - Landmark Select	$	1.496046	$	1.394793	$	1.463531	$	1.495519
M&E - 2.30% - Huntington Landmark	$	0.856811	$	1.018298	$	0.984443	$	0.924637
M&E - 2.30% - Landmark ML	$	1.496046	$	1.394793	$	1.463531	$	1.495519
M&E - 2.35% - Freedom	$	—	$	1.025360	$	1.010826	$	0.978872
M&E - 2.45% - Landmark	$	—	$	1.022413	$	1.007920	$	0.976071
M&E - 2.45% - Landmark Select	$	—	$	1.022413	$	1.007920	$	0.976071
M&E - 2.45% - Huntington Landmark	$	—	$	1.022413	$	1.007920	$	0.976071
M&E - 2.45% - Landmark ML	$	—	$	1.022413	$	1.007920	$	0.976071

See accompanying notes.

10

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica WMC Diversified Growth VP Subaccount		Transamerica MFS International Equity VP Subaccount		Transamerica Clarion Global Real Estate Securities VP Subaccount		Transamerica Diversified Equity VP Subaccount
Assets
Investment in securities:
Number of shares - Initial		7,782,757.206		9,124,267.770		3,961,081.687		5,149,359.081
Cost	$	192,261,602	$	70,245,144	$	57,150,962	$	76,974,667
Number of shares - Service		369,644.519		1,168,333.559		966,358.343		872,447.838
Cost	$	7,754,514	$	7,365,931	$	10,574,177	$	14,472,153
Investments in mutual funds,
Level 1 quoted prices at net asset value	$	183,017,925	$	72,045,985	$	56,085,943	$	121,543,677
Receivable for units sold		—		—		—		—
Total assets		183,017,925		72,045,985		56,085,943		121,543,677
Liabilities
Payable for units redeemed		111		90		6		308
	$	183,017,814	$	72,045,895	$	56,085,937	$	121,543,369
Net Assets:
Deferred annuity contracts terminable by owners	$	183,017,814	$	72,045,895	$	56,085,937	$	121,543,369
Total net assets	$	183,017,814	$	72,045,895	$	56,085,937	$	121,543,369

See accompanying notes.

11

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

					Transamerica Clarion
	Transamerica WMC		Transamerica MFS		Global Real Estate		Transamerica
	Diversified Growth VP		International Equity VP		Securities VP		Diversified Equity VP
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		7,425,506		2,753,022		1,072,987		4,263,838
M&E - 1.25% - Landmark ML		1,694,037		352,063		85,599		518,674
M&E - 1.25% - Freedom		1,560,393		57,930		103,545		809,907
M&E - 1.30% - Landmark		10,472,564		8,013,823		3,818,804		10,454,912
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		327,275		214,405		161,143		492,249
M&E - 1.40% - Landmark		59,398,807		1,386,404		1,250,627		9,528,213
M&E - 1.40% - Landmark ML		15,414,266		947,109		204,891		5,521,997
M&E - 1.40% - Freedom		9,458,998		554,999		409,519		4,466,945
M&E - 1.50% - Landmark		18,454,640		7,839,779		2,549,785		14,081,700
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		4,594,477		2,447,602		218,556		2,769,367
M&E - 1.50% - Freedom		568,567		239,245		94,502		1,005,853
M&E - 1.55% - Landmark		44,165,776		24,317,779		10,325,442		63,891,845
M&E - 1.55% - Landmark ML		9,392,432		2,660,039		1,158,669		8,944,594
M&E - 1.65% - Freedom		2,610,489		677,110		1,096,144		5,546,953
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

12

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

					Transamerica Clarion
	Transamerica WMC		Transamerica MFS		Global Real Estate		Transamerica
	Diversified Growth VP		International Equity VP		Securities VP		Diversified Equity VP
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

13

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

					Transamerica Clarion
	Transamerica WMC		Transamerica MFS		Global Real Estate		Transamerica
	Diversified Growth VP		International Equity VP		Securities VP		Diversified Equity VP
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.116284	$	1.198383	$	2.035925	$	1.115221
M&E - 1.25% - Landmark ML	$	1.116284	$	1.198383	$	2.035925	$	1.115221
M&E - 1.25% - Freedom	$	0.885413	$	0.921384	$	0.755619	$	0.875147
M&E - 1.30% - Landmark	$	1.398595	$	1.471150	$	2.027218	$	1.283584
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.398595	$	1.471150	$	2.027218	$	1.283584
M&E - 1.40% - Landmark	$	0.851858	$	1.181344	$	2.009964	$	0.645428
M&E - 1.40% - Landmark ML	$	0.851858	$	1.181344	$	2.009964	$	0.645428
M&E - 1.40% - Freedom	$	1.239560	$	1.456586	$	1.658272	$	1.232981
M&E - 1.50% - Landmark	$	1.089949	$	1.170113	$	1.992826	$	1.088899
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.089949	$	1.170113	$	1.992826	$	1.088899
M&E - 1.50% - Freedom	$	0.842960	$	1.170113	$	1.992826	$	0.638687
M&E - 1.55% - Landmark	$	0.838555	$	1.164590	$	1.984355	$	0.635312
M&E - 1.55% - Landmark ML	$	0.838555	$	1.164590	$	1.984355	$	0.635312
M&E - 1.65% - Freedom	$	0.829795	$	1.153536	$	1.967462	$	0.628704
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.340066	$	1.409677	$	1.942441	$	1.229951
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.340066	$	1.409677	$	1.942441	$	1.229951

See accompanying notes.

14

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

					Transamerica Clarion
	Transamerica WMC		Transamerica MFS		Global Real Estate		Transamerica
	Diversified Growth VP		International Equity VP		Securities VP		Diversified Equity VP
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	0.893727	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	1.311824	$	1.379994	$	1.901584	$	1.204008
M&E - 2.05% - Landmark ML	$	1.311824	$	1.379994	$	1.901584	$	1.204008
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	0.882800	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	0.882800	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

15

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

					Transamerica Clarion
	Transamerica WMC		Transamerica MFS		Global Real Estate		Transamerica
	Diversified Growth VP		International Equity VP		Securities VP		Diversified Equity VP
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		2,208,530		2,188,049		3,154,065		6,648,648
M&E - 1.30% - Suntrust Landmark		107,932		7,883		47,348		111,778
M&E - 1.30% - Landmark Select		202,564		48,935		21,457		122,698
M&E - 1.30% - Huntington Landmark		90,107		27,756		9,419		118,434
M&E - 1.30% - Landmark ML		5,020		172,104		75,819		430,851
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		893,728		796,249		1,178,113		2,588,489
M&E - 1.50% - Suntrust Landmark		83,131		9,683		16,706		18,510
M&E - 1.50% - Landmark Select		24,429		—		—		1,341
M&E - 1.50% - Huntington Landmark		4,320		50,346		109,253		16,323
M&E - 1.50% - Landmark ML		360,719		25,017		10,619		130,098
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		258,860		129,066		43,408		204,075
M&E - 1.70% - Freedom		180,543		780,952		627,682		1,421,961
M&E - 1.80% - Landmark		264,146		110,667		370,795		1,321,234
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		2,334		1,803		—		—
M&E - 1.80% - Huntington Landmark		9,213		353		18,382		15,585
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

16

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

					Transamerica Clarion
	Transamerica WMC		Transamerica MFS		Global Real Estate		Transamerica
	Diversified Growth VP		International Equity VP		Securities VP		Diversified Equity VP
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		192,878		166,712		66,078		377,962
M&E - 1.90% - Freedom		132,778		223,872		56,741		303,137
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		35,400		3,482		51,738		28,366
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		20,928		3,218
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		451,234		91,687		204,685		641,309
M&E - 2.20% - Freedom		220,412		95,194		32,428		352,745
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

17

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

					Transamerica Clarion
	Transamerica WMC		Transamerica MFS		Global Real Estate		Transamerica
	Diversified Growth VP		International Equity VP		Securities VP		Diversified Equity VP
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	1.526478	$	1.855655	$	2.026045	$	1.228084
M&E - 1.30% - Suntrust Landmark	$	1.526478	$	1.855655	$	2.026045	$	1.228084
M&E - 1.30% - Landmark Select	$	1.526478	$	1.855655	$	2.026045	$	1.228084
M&E - 1.30% - Huntington Landmark	$	0.860711	$	0.940409	$	0.845604	$	0.875407
M&E - 1.30% - Landmark ML	$	1.526478	$	1.855655	$	2.026045	$	1.228084
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.503523	$	1.827773	$	1.995615	$	1.211995
M&E - 1.50% - Suntrust Landmark	$	1.503523	$	1.827773	$	1.995615	$	1.211995
M&E - 1.50% - Landmark Select	$	1.503523	$	1.827773	$	1.995615	$	1.211995
M&E - 1.50% - Huntington Landmark	$	0.855125	$	0.934286	$	0.840104	$	0.869714
M&E - 1.50% - Landmark ML	$	1.503523	$	1.827773	$	1.995615	$	1.211995
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	1.486593	$	1.807190	$	1.973132	$	1.200098
M&E - 1.70% - Freedom	$	0.893304	$	1.013763	$	0.948374	$	0.967101
M&E - 1.80% - Landmark	$	1.469877	$	1.786830	$	1.950932	$	1.188402
M&E - 1.80% - Suntrust Landmark	$	1.469877	$	1.786830	$	1.950932	$	1.188402
M&E - 1.80% - Landmark Select	$	1.469877	$	1.786830	$	1.950932	$	1.188402
M&E - 1.80% - Huntington Landmark	$	0.846821	$	0.925199	$	0.831935	$	0.861253
M&E - 1.80% - Landmark ML	$	1.469877	$	1.786830	$	1.950932	$	1.188402

See accompanying notes.

18

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

					Transamerica Clarion
	Transamerica WMC		Transamerica MFS		Global Real Estate		Transamerica
	Diversified Growth VP		International Equity VP		Securities VP		Diversified Equity VP
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.464311	$	1.780109	$	1.943633	$	1.184469
M&E - 1.90% - Freedom	$	0.885130	$	1.004489	$	0.939678	$	0.958272
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.447850	$	1.760129	$	1.921752	$	1.172905
M&E - 2.00% - Suntrust Landmark	$	1.447850	$	1.760129	$	1.921752	$	1.172905
M&E - 2.00% - Landmark Select	$	1.447850	$	1.760129	$	1.921752	$	1.172905
M&E - 2.00% - Huntington Landmark	$	0.841316	$	0.919216	$	0.826541	$	0.855657
M&E - 2.00% - Landmark ML	$	1.447850	$	1.760129	$	1.921752	$	1.172905
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	1.431639	$	1.740377	$	1.900236	$	1.161435
M&E - 2.20% - Freedom	$	0.873044	$	0.990792	$	0.926856	$	0.945221
M&E - 2.30% - Landmark	$	1.415605	$	1.720944	$	1.878958	$	1.150110
M&E - 2.30% - Suntrust Landmark	$	1.415605	$	1.720944	$	1.878958	$	1.150110
M&E - 2.30% - Landmark Select	$	1.415605	$	1.720944	$	1.878958	$	1.150110
M&E - 2.30% - Huntington Landmark	$	0.833186	$	0.910318	$	0.818536	$	0.847391
M&E - 2.30% - Landmark ML	$	1.415605	$	1.720944	$	1.878958	$	1.150110
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

19

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

					Transamerica
	Transamerica Balanced		Transamerica Jennison		JPMorgan Enhanced		Transamerica AEGON
	VP		Growth VP		Index VP		High Yield Bond VP
	Subaccount		Subaccount		Subaccount		Subaccount
Assets
Investment in securities:
Number of shares - Initial		1,685,253.310		22,141,126.349		7,045,058.005		10,856,313.704
Cost	$	18,455,304	$	161,308,728	$	84,806,648	$	80,427,393
Number of shares - Service		3,765,760.346		1,835,520.338		238,275.906		2,483,790.137
Cost	$	39,028,538	$	13,097,738	$	2,660,112	$	19,281,133
Investments in mutual funds,
Level 1 quoted prices at net asset value	$	68,704,620	$	189,195,246	$	85,659,155	$	102,542,137
Receivable for units sold		—		—		—		63
Total assets		68,704,620		189,195,246		85,659,155		102,542,200
Liabilities
Payable for units redeemed		23		249		84		—
	$	68,704,597	$	189,194,997	$	85,659,071	$	102,542,200
Net Assets:
Deferred annuity contracts terminable by owners	$	68,704,597	$	189,194,997	$	85,659,071	$	102,542,200
Total net assets	$	68,704,597	$	189,194,997	$	85,659,071	$	102,542,200

See accompanying notes.

20

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

					Transamerica
	Transamerica Balanced		Transamerica Jennison		JPMorgan Enhanced		Transamerica AEGON
	VP		Growth VP		Index VP		High Yield Bond VP
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		386,559		6,603,344		5,287,497		3,541,121
M&E - 1.25% - Landmark ML		29,766		2,663,230		775,685		381,136
M&E - 1.25% - Freedom		9,831		898,271		955,697		135,828
M&E - 1.30% - Landmark		3,458,012		12,447,056		3,864,769		6,700,417
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		107,756		1,257,970		220,714		286,368
M&E - 1.40% - Landmark		564,443		33,176,693		6,697,497		3,152,682
M&E - 1.40% - Landmark ML		61,501		11,142,728		4,231,098		931,918
M&E - 1.40% - Freedom		463,845		8,042,354		4,616,903		1,554,951
M&E - 1.50% - Landmark		1,601,980		25,019,131		19,935,713		9,012,921
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		59,763		8,349,859		1,623,015		1,187,294
M&E - 1.50% - Freedom		70,624		260,220		94,680		277,680
M&E - 1.55% - Landmark		6,637,811		52,357,242		14,944,913		22,756,331
M&E - 1.55% - Landmark ML		542,253		11,765,307		2,228,937		2,047,782
M&E - 1.65% - Freedom		254,262		2,573,594		579,745		542,951
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

21

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Balanced VP Subaccount		Transamerica Jennison Growth VP Subaccount		Transamerica JPMorgan Enhanced Index VP Subaccount		Transamerica AEGON High Yield Bond VP Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

22

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Balanced VP Subaccount		Transamerica Jennison Growth VP Subaccount		Transamerica JPMorgan Enhanced Index VP Subaccount		Transamerica AEGON High Yield Bond VP Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.529974	$	0.980165	$	1.012004	$	1.647887
M&E - 1.25% - Landmark ML	$	1.529974	$	0.980165	$	1.012004	$	1.647887
M&E - 1.25% - Freedom	$	1.095604	$	1.024559	$	0.878069	$	1.157441
M&E - 1.30% - Landmark	$	1.523399	$	1.231751	$	1.208546	$	1.643398
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.523399	$	1.231751	$	1.208546	$	1.643398
M&E - 1.40% - Landmark	$	1.510448	$	0.962411	$	1.557120	$	1.592018
M&E - 1.40% - Landmark ML	$	1.510448	$	0.962411	$	1.557120	$	1.592018
M&E - 1.40% - Freedom	$	1.437038	$	1.283258	$	1.167298	$	1.424156
M&E - 1.50% - Landmark	$	1.497561	$	0.957074	$	0.988148	$	1.609061
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.497561	$	0.957074	$	0.988148	$	1.609061
M&E - 1.50% - Freedom	$	1.497561	$	0.948123	$	1.535728	$	1.572425
M&E - 1.55% - Landmark	$	1.491197	$	0.943190	$	1.526082	$	1.562668
M&E - 1.55% - Landmark ML	$	1.491197	$	0.943307	$	1.526348	$	1.562668
M&E - 1.65% - Freedom	$	1.478503	$	0.929448	$	1.505515	$	1.543449
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.459709	$	1.180264	$	1.157996	$	1.574694
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.459709	$	1.180264	$	1.157996	$	1.574694

See accompanying notes.

23

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Balanced VP Subaccount		Transamerica Jennison Growth VP Subaccount		Transamerica JPMorgan Enhanced Index VP Subaccount		Transamerica AEGON High Yield Bond VP Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	1.429019	$	1.155416	$	1.133581	$	1.541541
M&E - 2.05% - Landmark ML	$	1.429019	$	1.155416	$	1.133581	$	1.541541
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

24

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Balanced VP Subaccount		Transamerica Jennison Growth VP Subaccount		Transamerica JPMorgan Enhanced Index VP Subaccount		Transamerica AEGON High Yield Bond VP Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		17,092,613		3,884,531		777,733		6,254,576
M&E - 1.30% - Suntrust Landmark		25,238		302,443		80,541		129,759
M&E - 1.30% - Landmark Select		54,037		103,443		59,494		47,800
M&E - 1.30% - Huntington Landmark		503,434		295,978		8,380		194,067
M&E - 1.30% - Landmark ML		1,457,360		673,450		76,313		222,167
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		5,543,798		1,944,677		359,247		3,053,856
M&E - 1.50% - Suntrust Landmark		23,925		16,422		6,011		16,285
M&E - 1.50% - Landmark Select		180,816		—		—		5,632
M&E - 1.50% - Huntington Landmark		287,530		75,367		—		71,718
M&E - 1.50% - Landmark ML		349,540		61,974		144,535		8,717
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		9,711		—		—		—
M&E - 1.65% - Freedom		70,815		111,387		37,717		168,920
M&E - 1.70% - Freedom		2,910,051		955,550		376,129		1,459,678
M&E - 1.80% - Landmark		1,604,784		428,537		60,922		469,095
M&E - 1.80% - Suntrust Landmark		—		—		—		10,616
M&E - 1.80% - Landmark Select		—		2,299		—		—
M&E - 1.80% - Huntington Landmark		68,834		307		—		4,598
M&E - 1.80% - Landmark ML		36,856		51,783		—		—

See accompanying notes.

25

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Balanced VP Subaccount		Transamerica Jennison Growth VP Subaccount		Transamerica JPMorgan Enhanced Index VP Subaccount		Transamerica AEGON High Yield Bond VP Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		37,482		74,986		36		94,820
M&E - 1.90% - Freedom		642,185		144,659		8,630		62,221
M&E - 1.95% - Landmark		461,605		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		4,438		—		—		—
M&E - 1.95% - Landmark ML		72,380		—		—		—
M&E - 2.00% - Landmark		211,460		56,505		3,993		144,904
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		50,578		16,324		—		85,295
M&E - 2.00% - Landmark ML		67,123		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		28,385		685,267		91,960		614,637
M&E - 2.20% - Freedom		46,110		96,620		45,613		10,787
M&E - 2.30% - Landmark		—		4,262		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		65,682		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

26

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Balanced VP Subaccount		Transamerica Jennison Growth VP Subaccount		Transamerica JPMorgan Enhanced Index VP Subaccount		Transamerica AEGON High Yield Bond VP Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	1.130153	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	1.557207	$	1.524040	$	1.414049	$	1.524631
M&E - 1.30% - Suntrust Landmark	$	1.557207	$	1.524040	$	1.414049	$	1.524631
M&E - 1.30% - Landmark Select	$	1.557207	$	1.524040	$	1.414049	$	1.524631
M&E - 1.30% - Huntington Landmark	$	1.077443	$	1.009927	$	0.896749	$	1.191277
M&E - 1.30% - Landmark ML	$	1.557207	$	1.524040	$	1.414049	$	1.524631
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	1.129037	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.533791	$	1.501147	$	1.392839	$	1.501747
M&E - 1.50% - Suntrust Landmark	$	1.533791	$	1.501147	$	1.392839	$	1.501747
M&E - 1.50% - Landmark Select	$	1.533791	$	1.501147	$	1.392839	$	1.501747
M&E - 1.50% - Huntington Landmark	$	1.070422	$	1.003358	$	0.890902	$	1.183540
M&E - 1.50% - Landmark ML	$	1.533791	$	1.501147	$	1.392839	$	1.501747
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	1.127907	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	1.516479	$	1.484226	$	1.377123	$	1.484824
M&E - 1.70% - Freedom	$	1.143593	$	1.036536	$	0.987201	$	1.236198
M&E - 1.80% - Landmark	$	1.499432	$	1.467518	$	1.361635	$	1.468157
M&E - 1.80% - Suntrust Landmark	$	1.499432	$	1.467518	$	1.361635	$	1.468157
M&E - 1.80% - Landmark Select	$	1.499432	$	1.467518	$	1.361635	$	1.468157
M&E - 1.80% - Huntington Landmark	$	1.060019	$	0.993599	$	0.882228	$	1.172046
M&E - 1.80% - Landmark ML	$	1.499432	$	1.467518	$	1.361635	$	1.468157

See accompanying notes.

27

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Balanced VP Subaccount		Transamerica Jennison Growth VP Subaccount		Transamerica JPMorgan Enhanced Index VP Subaccount		Transamerica AEGON High Yield Bond VP Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.493791	$	1.462004	$	1.356539	$	1.462597
M&E - 1.90% - Freedom	$	1.133116	$	1.027068	$	0.978148	$	1.224966
M&E - 1.95% - Landmark	$	1.396253	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	1.100340	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	1.100340	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	1.100340	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.477040	$	1.445577	$	1.341301	$	1.446171
M&E - 2.00% - Suntrust Landmark	$	1.477040	$	1.445577	$	1.341301	$	1.446171
M&E - 2.00% - Landmark Select	$	1.477040	$	1.445577	$	1.341301	$	1.446171
M&E - 2.00% - Huntington Landmark	$	1.053161	$	0.987170	$	0.876536	$	1.164440
M&E - 2.00% - Landmark ML	$	1.477040	$	1.445577	$	1.341301	$	1.446171
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	1.124192	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	1.460472	$	1.429363	$	1.326274	$	1.429973
M&E - 2.20% - Freedom	$	1.117673	$	1.013030	$	0.964818	$	1.208239
M&E - 2.30% - Landmark	$	1.444108	$	1.413373	$	1.311394	$	1.413954
M&E - 2.30% - Suntrust Landmark	$	1.444108	$	1.413373	$	1.311394	$	1.413954
M&E - 2.30% - Landmark Select	$	1.444108	$	1.413373	$	1.311394	$	1.413954
M&E - 2.30% - Huntington Landmark	$	1.042957	$	0.977625	$	0.868049	$	1.153170
M&E - 2.30% - Landmark ML	$	1.444108	$	1.413373	$	1.311394	$	1.413954
M&E - 2.35% - Freedom	$	1.087704	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	1.084596	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	1.084596	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	1.084596	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	1.084596	$	—	$	—	$	—

See accompanying notes.

28

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Growth Opportunities VP Subaccount		Transamerica BlackRock Large Cap Value VP Subaccount		Transamerica PIMCO Total Return VP Subaccount		Transamerica Focus VP Subaccount
Assets
Investment in securities:
Number of shares - Initial		3,341,083.469		27,106,377.330		26,847,755.513		7,029,615.690
Cost	$	45,684,650	$	349,627,024	$	303,300,984	$	87,049,482
Number of shares - Service		338,845.414		2,539,279.746		16,219,153.443		248,108.524
Cost	$	3,730,580	$	32,344,436	$	186,727,828	$	2,588,532
Investments in mutual funds,
Level 1 quoted prices at net asset value	$	52,625,424	$	404,764,791	$	498,066,040	$	85,217,189
Receivable for units sold		—		—		—		—
Total assets		52,625,424		404,764,791		498,066,040		85,217,189
Liabilities
Payable for units redeemed		82		164		1,988		334
	$	52,625,342	$	404,764,627	$	498,064,052	$	85,216,855
Net Assets:
Deferred annuity contracts terminable by owners	$	52,625,342	$	404,764,627	$	498,064,052	$	85,216,855
Total net assets	$	52,625,342	$	404,764,627	$	498,064,052	$	85,216,855

See accompanying notes.

29

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Growth Opportunities VP Subaccount		Transamerica BlackRock Large Cap Value VP Subaccount		Transamerica PIMCO Total Return VP Subaccount		Transamerica Focus VP Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		1,394,459		13,436,880		6,873,397		3,604,608
M&E - 1.25% - Landmark ML		262,962		2,668,465		1,256,702		464,677
M&E - 1.25% - Freedom		23,341		2,624,343		944,465		217,574
M&E - 1.30% - Landmark		3,174,704		28,832,641		27,980,795		6,092,160
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		282,986		1,555,266		2,417,106		429,297
M&E - 1.40% - Landmark		800,535		45,565,915		8,715,555		1,995,474
M&E - 1.40% - Landmark ML		353,314		8,200,977		3,599,315		457,076
M&E - 1.40% - Freedom		386,107		17,427,873		4,175,329		2,458,798
M&E - 1.50% - Landmark		4,136,564		43,352,188		24,077,619		17,053,736
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		1,047,722		9,991,992		7,380,461		3,687,908
M&E - 1.50% - Freedom		80,947		1,336,617		1,467,024		227,443
M&E - 1.55% - Landmark		9,316,677		82,725,160		109,546,623		24,187,428
M&E - 1.55% - Landmark ML		1,723,053		10,211,735		14,641,906		3,540,898
M&E - 1.65% - Freedom		446,687		3,981,440		3,425,998		1,058,309
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

30

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Growth Opportunities VP Subaccount		Transamerica BlackRock Large Cap Value VP Subaccount		Transamerica PIMCO Total Return VP Subaccount		Transamerica Focus VP Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

31

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Growth Opportunities VP Subaccount		Transamerica BlackRock  Large Cap Value VP Subaccount		Transamerica PIMCO Total Return VP Subaccount		Transamerica Focus  VP Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	2.144594	$	1.314183	$	1.468334	$	1.214860
M&E - 1.25% - Landmark ML	$	2.144594	$	1.314183	$	1.468334	$	1.214860
M&E - 1.25% - Freedom	$	1.243587	$	0.782085	$	1.234951	$	0.954020
M&E - 1.30% - Landmark	$	1.804780	$	1.323972	$	1.462038	$	1.322299
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.804780	$	1.323972	$	1.462038	$	1.322299
M&E - 1.40% - Landmark	$	2.114094	$	1.437773	$	1.449581	$	1.317216
M&E - 1.40% - Landmark ML	$	2.114094	$	1.437773	$	1.449581	$	1.317216
M&E - 1.40% - Freedom	$	1.619791	$	1.250103	$	1.338049	$	1.261356
M&E - 1.50% - Landmark	$	2.094031	$	1.283245	$	1.437263	$	1.186252
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	2.094031	$	1.283245	$	1.437263	$	1.186252
M&E - 1.50% - Freedom	$	2.094031	$	1.422727	$	1.437263	$	1.303377
M&E - 1.55% - Landmark	$	2.084101	$	1.415251	$	1.431103	$	1.296542
M&E - 1.55% - Landmark ML	$	2.084101	$	1.415251	$	1.431103	$	1.296542
M&E - 1.65% - Freedom	$	2.064319	$	1.400446	$	1.418945	$	1.283014
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.729348	$	1.268583	$	1.400929	$	1.267018
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.729348	$	1.268583	$	1.400929	$	1.267018

See accompanying notes.

32

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Growth Opportunities VP Subaccount		Transamerica BlackRock Large Cap Value VP Subaccount		Transamerica PIMCO Total Return VP Subaccount		Transamerica Focus VP Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	1.692921	$	1.241859	$	1.371400	$	1.240333
M&E - 2.05% - Landmark ML	$	1.692921	$	1.241859	$	1.371400	$	1.240333
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

33

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Growth Opportunities VP Subaccount		Transamerica BlackRock Large Cap Value VP Subaccount		Transamerica PIMCO Total Return VP Subaccount		Transamerica Focus VP Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		1,107,331		10,057,150		72,077,344		556,422
M&E - 1.30% - Suntrust Landmark		53,952		227,154		858,726		24,158
M&E - 1.30% - Landmark Select		3,152		337,161		800,770		5,383
M&E - 1.30% - Huntington Landmark		6,488		1,664,705		2,825,040		2,803
M&E - 1.30% - Landmark ML		6,905		756,462		10,237,561		162,882
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		451,049		3,824,797		17,130,472		410,345
M&E - 1.50% - Suntrust Landmark		—		41,777		59,194		—
M&E - 1.50% - Landmark Select		—		6,932		119,374		1,696
M&E - 1.50% - Huntington Landmark		19,927		442,387		858,517		—
M&E - 1.50% - Landmark ML		789		173,447		1,109,138		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		75,311		265,767		807,819		47,221
M&E - 1.70% - Freedom		548,661		3,546,773		10,865,097		258,131
M&E - 1.80% - Landmark		65,804		1,412,709		14,936,156		105,472
M&E - 1.80% - Suntrust Landmark		—		—		11,370		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		136,889		353,302		—
M&E - 1.80% - Landmark ML		—		84,711		626,939		—

See accompanying notes.

34

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Growth Opportunities VP Subaccount		Transamerica BlackRock Large Cap Value VP Subaccount		Transamerica PIMCO Total Return VP Subaccount		Transamerica Focus VP Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		26,557		448,247		904,718		35,726
M&E - 1.90% - Freedom		81,677		513,542		1,233,602		91,240
M&E - 1.95% - Landmark		—		—		3,452,837		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		230,031		—
M&E - 2.00% - Landmark		16,585		135,583		1,221,106		12,627
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		61,278		154,185		—
M&E - 2.00% - Landmark ML		—		—		75,489		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		49,202		774,901		1,189,264		192,823
M&E - 2.20% - Freedom		8,013		499,351		233,889		57,914
M&E - 2.30% - Landmark		—		—		71,511		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		126,133		—
M&E - 2.45% - Landmark		—		—		258,699		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

35

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Growth Opportunities VP Subaccount		Transamerica BlackRock Large Cap Value VP Subaccount		Transamerica PIMCO Total Return VP Subaccount		Transamerica Focus VP Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	2.166935	$	1.580608	$	1.332858	$	1.617809
M&E - 1.30% - Suntrust Landmark	$	2.166935	$	1.580608	$	1.332858	$	1.617809
M&E - 1.30% - Landmark Select	$	2.166935	$	1.580608	$	1.332858	$	1.617809
M&E - 1.30% - Huntington Landmark	$	1.124091	$	0.809443	$	1.196708	$	0.989324
M&E - 1.30% - Landmark ML	$	2.166935	$	1.580608	$	1.332858	$	1.617809
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	1.336774	$	1.168844	$	—
M&E - 1.50% - Landmark	$	2.134410	$	1.556876	$	1.312870	$	1.593493
M&E - 1.50% - Suntrust Landmark	$	2.134410	$	1.556876	$	1.312870	$	1.593493
M&E - 1.50% - Landmark Select	$	2.134410	$	1.556876	$	1.312870	$	1.593493
M&E - 1.50% - Huntington Landmark	$	1.116767	$	0.804176	$	1.188921	$	0.982867
M&E - 1.50% - Landmark ML	$	2.134410	$	1.556876	$	1.312870	$	1.593493
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	2.110317	$	1.539335	$	1.298055	$	1.575542
M&E - 1.70% - Freedom	$	1.197677	$	0.857778	$	1.265142	$	1.045138
M&E - 1.80% - Landmark	$	2.086598	$	1.522005	$	1.283433	$	1.557811
M&E - 1.80% - Suntrust Landmark	$	2.086598	$	1.522005	$	1.283433	$	1.557811
M&E - 1.80% - Landmark Select	$	2.086598	$	1.522005	$	1.283433	$	1.557811
M&E - 1.80% - Huntington Landmark	$	1.105893	$	0.796335	$	1.177363	$	0.973311
M&E - 1.80% - Landmark ML	$	2.086598	$	1.522005	$	1.283433	$	1.557811

See accompanying notes.

36

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Growth Opportunities VP Subaccount		Transamerica BlackRock Large Cap Value VP Subaccount		Transamerica PIMCO Total Return VP Subaccount		Transamerica Focus VP Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	2.078714	$	1.516290	$	1.278614	$	1.551967
M&E - 1.90% - Freedom	$	1.186711	$	0.849934	$	1.253577	$	1.035609
M&E - 1.95% - Landmark	$	—	$	—	$	1.276669	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	1.093181	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	1.093181	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	1.093181	$	—
M&E - 2.00% - Landmark	$	2.055394	$	1.499261	$	1.264241	$	1.534525
M&E - 2.00% - Suntrust Landmark	$	2.055394	$	1.499261	$	1.264241	$	1.534525
M&E - 2.00% - Landmark Select	$	2.055394	$	1.499261	$	1.264241	$	1.534525
M&E - 2.00% - Huntington Landmark	$	1.098741	$	0.791192	$	1.169738	$	0.967013
M&E - 2.00% - Landmark ML	$	2.055394	$	1.499261	$	1.264241	$	1.534525
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	2.032348	$	1.482471	$	1.250055	$	1.517316
M&E - 2.20% - Freedom	$	1.170532	$	0.838327	$	1.236499	$	1.021451
M&E - 2.30% - Landmark	$	2.009595	$	1.465861	$	1.236068	$	1.500331
M&E - 2.30% - Suntrust Landmark	$	2.009595	$	1.465861	$	1.236068	$	1.500331
M&E - 2.30% - Landmark Select	$	2.009595	$	1.465861	$	1.236068	$	1.500331
M&E - 2.30% - Huntington Landmark	$	1.088107	$	0.783526	$	1.158440	$	0.957660
M&E - 2.30% - Landmark ML	$	2.009595	$	1.465861	$	1.236068	$	1.500331
M&E - 2.35% - Freedom	$	—	$	—	$	1.080675	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	1.077556	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	1.077556	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	1.077556	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	1.077556	$	—

See accompanying notes.

37

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica AllianceBernstein Dynamic Allocation VP Subaccount		Transamerica U.S. Government Securities VP Subaccount		Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount		Transamerica T. Rowe Price Small Cap VP Subaccount
Assets
Investment in securities:
Number of shares - Initial		3,241,256.703		8,754,804.046		—		8,202,218.344
Cost	$	24,034,411	$	108,873,947	$	—	$	72,680,909
Number of shares - Service		2,357,885.710		6,481,293.943		4,338,360.974		1,578,374.904
Cost	$	18,730,668	$	86,011,766	$	56,947,912	$	11,519,824
Investments in mutual funds, Level 1 quoted prices at net asset value	$	45,361,887	$	195,750,947	$	56,311,925	$	92,110,931
Receivable for units sold		—		—		—		—
Total assets		45,361,887		195,750,947		56,311,925		92,110,931
Liabilities
Payable for units redeemed		10		54		56		793
	$	45,361,877	$	195,750,893	$	56,311,869	$	92,110,138
Net Assets:
Deferred annuity contracts terminable by owners	$	45,361,877	$	195,750,893	$	56,311,869	$	92,110,138
Total net assets	$	45,361,877	$	195,750,893	$	56,311,869	$	92,110,138

See accompanying notes.

38

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica AllianceBernstein Dynamic Allocation VP Subaccount		Transamerica U.S. Government Securities VP Subaccount		Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount		Transamerica T. Rowe Price Small Cap VP Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		896,482		4,203,179		—		2,956,118
M&E - 1.25% - Landmark ML		79,285		1,491,854		—		362,043
M&E - 1.25% - Freedom		10,304		280,082		—		99,571
M&E - 1.30% - Landmark		2,957,652		8,751,398		—		9,190,416
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		238,922		888,544		—		449,567
M&E - 1.40% - Landmark		942,208		6,811,158		—		2,326,058
M&E - 1.40% - Landmark ML		344,495		2,626,781		—		1,137,578
M&E - 1.40% - Freedom		499,064		3,618,540		—		733,981
M&E - 1.50% - Landmark		2,044,909		12,648,176		—		8,889,266
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		535,988		4,647,782		—		2,213,787
M&E - 1.50% - Freedom		70,233		317,672		—		279,432
M&E - 1.55% - Landmark		8,489,786		20,764,674		—		28,437,573
M&E - 1.55% - Landmark ML		1,167,702		3,521,606		—		3,982,648
M&E - 1.65% - Freedom		264,532		987,757		—		692,999
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		7,424
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

39

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica AllianceBernstein Dynamic Allocation VP Subaccount		Transamerica U.S. Government Securities VP Subaccount		Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount		Transamerica T. Rowe Price Small Cap VP Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

40

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica AllianceBernstein Dynamic Allocation VP Subaccount		Transamerica U.S. Government Securities VP Subaccount		Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount		Transamerica T. Rowe Price Small Cap VP Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.449976	$	1.344691	$	—	$	1.436428
M&E - 1.25% - Landmark ML	$	1.449976	$	1.344691	$	—	$	1.436428
M&E - 1.25% - Freedom	$	1.001737	$	1.165195	$	—	$	1.175500
M&E - 1.30% - Landmark	$	1.443750	$	1.314814	$	—	$	1.551893
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.443750	$	1.314814	$	—	$	1.551893
M&E - 1.40% - Landmark	$	1.431436	$	1.845743	$	—	$	1.129182
M&E - 1.40% - Landmark ML	$	1.431436	$	1.845743	$	—	$	1.129182
M&E - 1.40% - Freedom	$	1.248997	$	1.243887	$	—	$	1.448590
M&E - 1.50% - Landmark	$	1.419261	$	1.313015	$	—	$	1.402607
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.419261	$	1.313015	$	—	$	1.402607
M&E - 1.50% - Freedom	$	1.419261	$	1.811910	$	—	$	1.117363
M&E - 1.55% - Landmark	$	1.413194	$	1.811946	$	—	$	1.111455
M&E - 1.55% - Landmark ML	$	1.413194	$	1.812219	$	—	$	1.111455
M&E - 1.65% - Freedom	$	1.401178	$	1.773434	$	—	$	1.099853
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.383377	$	1.259858	$	—	$	1.486982
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.383377	$	1.259858	$	—	$	1.486982

See accompanying notes.

41

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica AllianceBernstein Dynamic Allocation VP Subaccount		Transamerica U.S. Government Securities VP Subaccount		Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount		Transamerica T. Rowe Price Small Cap VP Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	1.354248	$	1.233305	$	—	$	1.455682
M&E - 2.05% - Landmark ML	$	1.354248	$	1.233305	$	—	$	1.455682
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

42

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica AllianceBernstein Dynamic Allocation VP Subaccount		Transamerica U.S. Government Securities VP Subaccount		Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount		Transamerica T. Rowe Price Small Cap VP Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		88,337		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		7,437,319		37,294,669		21,991,579		3,964,091
M&E - 1.30% - Suntrust Landmark		24,284		203,058		2,486,963		113,756
M&E - 1.30% - Landmark Select		23,515		801,357		2,328,238		58,967
M&E - 1.30% - Huntington Landmark		752,918		1,898,150		481,412		100,387
M&E - 1.30% - Landmark ML		563,973		1,941,845		1,064,483		231,991
M&E - 1.40% - Landmark		—		—		17,648		—
M&E - 1.40% - Landmark ML		—		—		8,707		—
M&E - 1.40% - Freedom		—		—		46,230		—
M&E - 1.50% - Landmark		1,563,728		11,356,916		9,324,259		1,501,796
M&E - 1.50% - Suntrust Landmark		29,438		9,966		369,163		17,669
M&E - 1.50% - Landmark Select		—		52,012		1,151,104		—
M&E - 1.50% - Huntington Landmark		32,097		1,083,158		211,239		20,726
M&E - 1.50% - Landmark ML		357,049		453,219		1,260,900		10,192
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		948,367		419,030		837,822		162,134
M&E - 1.70% - Freedom		648,000		5,682,476		209,617		531,073
M&E - 1.80% - Landmark		548,885		5,834,520		2,121,677		555,344
M&E - 1.80% - Suntrust Landmark		—		—		113,442		—
M&E - 1.80% - Landmark Select		—		—		87,233		—
M&E - 1.80% - Huntington Landmark		—		31,401		55,218		355
M&E - 1.80% - Landmark ML		50,701		136,652		30,986		—

See accompanying notes.

43

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica AllianceBernstein Dynamic Allocation VP Subaccount		Transamerica U.S. Government Securities VP Subaccount		Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount		Transamerica T. Rowe Price Small Cap VP Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		35,674		104,601		578,648		72,638
M&E - 1.90% - Freedom		33,748		598,533		626,365		183,920
M&E - 1.95% - Landmark		276,951		561,137		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		16,812		—		—
M&E - 2.00% - Landmark		240,394		843,366		1,266,155		54,264
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		85,437		1,394		—		—
M&E - 2.00% - Landmark ML		20,741		182,056		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		50,488		417,276		—		200,915
M&E - 2.20% - Freedom		36,907		82,842		—		68,485
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

44

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica AllianceBernstein Dynamic Allocation VP Subaccount		Transamerica U.S. Government Securities VP Subaccount		Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount		Transamerica T. Rowe Price Small Cap VP Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	1.236541	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	1.236541	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	1.155985	$	—
M&E - 1.30% - Landmark	$	1.458130	$	1.215879	$	1.215879	$	1.973204
M&E - 1.30% - Suntrust Landmark	$	1.458130	$	1.215879	$	1.215879	$	1.973204
M&E - 1.30% - Landmark Select	$	1.458130	$	1.215879	$	1.215879	$	1.973204
M&E - 1.30% - Huntington Landmark	$	0.943214	$	1.139112	$	1.139112	$	1.150400
M&E - 1.30% - Landmark ML	$	1.458130	$	1.215879	$	1.215879	$	1.973204
M&E - 1.40% - Landmark	$	—	$	—	$	1.223523	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	1.223523	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	1.224231	$	—
M&E - 1.50% - Landmark	$	1.436219	$	1.197654	$	1.197654	$	1.943542
M&E - 1.50% - Suntrust Landmark	$	1.436219	$	1.197654	$	1.197654	$	1.943542
M&E - 1.50% - Landmark Select	$	1.436219	$	1.197654	$	1.197654	$	1.943542
M&E - 1.50% - Huntington Landmark	$	0.937065	$	1.131718	$	1.131718	$	1.142929
M&E - 1.50% - Landmark ML	$	1.436219	$	1.197654	$	1.197654	$	1.943542
M&E - 1.50% - Freedom	$	—	$	—	$	1.214910	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	1.210634	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	1.210634	$	—
M&E - 1.65% - Freedom	$	1.420036	$	1.184157	$	1.184157	$	1.921682
M&E - 1.70% - Freedom	$	0.988475	$	1.197044	$	1.197044	$	1.139719
M&E - 1.80% - Landmark	$	1.404061	$	1.170842	$	1.170842	$	1.900032
M&E - 1.80% - Suntrust Landmark	$	1.404061	$	1.170842	$	1.170842	$	1.900032
M&E - 1.80% - Landmark Select	$	1.404061	$	1.170842	$	1.190388	$	1.900032
M&E - 1.80% - Huntington Landmark	$	0.927952	$	1.120706	$	1.120706	$	1.131825
M&E - 1.80% - Landmark ML	$	1.404061	$	1.170842	$	1.170842	$	1.900032

See accompanying notes.

45

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica AllianceBernstein Dynamic Allocation VP Subaccount		Transamerica U.S. Government Securities VP Subaccount		Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount		Transamerica T. Rowe Price Small Cap VP Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.398774	$	1.166405	$	1.166405	$	1.892902
M&E - 1.90% - Freedom	$	0.979463	$	1.186078	$	1.186078	$	1.129298
M&E - 1.95% - Landmark	$	1.230558	$	1.177000	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	1.076537	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	1.076537	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	1.076537	$	—	$	—
M&E - 2.00% - Landmark	$	1.383060	$	1.153327	$	1.153327	$	1.871617
M&E - 2.00% - Suntrust Landmark	$	1.383060	$	1.153327	$	1.153327	$	1.871617
M&E - 2.00% - Landmark Select	$	1.383060	$	1.153327	$	1.153327	$	1.871617
M&E - 2.00% - Huntington Landmark	$	0.921931	$	1.113456	$	1.113456	$	1.124463
M&E - 2.00% - Landmark ML	$	1.383060	$	1.153327	$	1.153327	$	1.871617
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	1.367579	$	1.140400	$	—	$	1.850689
M&E - 2.20% - Freedom	$	0.966094	$	1.169916	$	—	$	1.113883
M&E - 2.30% - Landmark	$	1.352264	$	1.127596	$	—	$	1.829933
M&E - 2.30% - Suntrust Landmark	$	1.352264	$	1.127596	$	—	$	1.829933
M&E - 2.30% - Landmark Select	$	1.352264	$	1.127596	$	—	$	1.829933
M&E - 2.30% - Huntington Landmark	$	0.913034	$	1.102682	$	—	$	1.113589
M&E - 2.30% - Landmark ML	$	1.352264	$	1.127596	$	—	$	1.829933
M&E - 2.35% - Freedom	$	—	$	1.064206	$	—	$	—
M&E - 2.45% - Landmark	$	1.045621	$	1.061135	$	—	$	—
M&E - 2.45% - Landmark Select	$	1.045621	$	1.061135	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	1.045621	$	1.061135	$	—	$	—
M&E - 2.45% - Landmark ML	$	1.045621	$	1.061135	$	—	$	—

See accompanying notes.

46

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Morgan Stanley Active International Allocation VP Subaccount		Transamerica Multi Managed Large Cap Core VP Subaccount		Transamerica Money Market VP Subaccount		Transamerica Morgan Stanley Mid-Cap Growth VP Subaccount
Assets
Investment in securities:
Number of shares - Initial		8,459,305.473		10,084,485.280		161,129,821.430		1,384,651.251
Cost	$	110,374,490	$	120,713,513	$	161,129,821	$	28,518,922
Number of shares - Service		747,179.539		691,043.564		79,453,389.010		329,703.400
Cost	$	7,781,173	$	8,063,177	$	79,453,389	$	7,721,372
Investments in mutual funds, Level 1 quoted prices at net asset value	$	105,561,024	$	167,422,790	$	240,583,210	$	49,879,800
Receivable for units sold		—		—		119		—
Total assets		105,561,024		167,422,790		240,583,329		49,879,800
Liabilities
Payable for units redeemed		275		118		—		1,208
	$	105,560,749	$	167,422,672	$	240,583,329	$	49,878,592
Net Assets:
Deferred annuity contracts terminable by owners	$	105,560,749	$	167,422,672	$	240,583,329	$	49,878,592
Total net assets	$	105,560,749	$	167,422,672	$	240,583,329	$	49,878,592

See accompanying notes.

47

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Morgan Stanley Active International Allocation VP Subaccount		Transamerica Multi Managed Large Cap Core VP Subaccount		Transamerica Money Market VP Subaccount		Transamerica Morgan Stanley Mid-Cap Growth VP Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		3,224,918		5,624,210		5,481,088		3,195,530
M&E - 1.25% - Landmark ML		953,005		1,448,051		1,771,140		683,291
M&E - 1.25% - Freedom		741,595		694,823		278,847		52,963
M&E - 1.30% - Landmark		6,544,922		6,422,023		14,871,632		3,551,436
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		528,344		580,144		1,907,065		213,253
M&E - 1.40% - Landmark		11,539,750		11,520,113		8,248,211		1,634,298
M&E - 1.40% - Landmark ML		2,784,822		2,134,347		3,517,568		101,929
M&E - 1.40% - Freedom		4,488,160		7,946,412		3,919,955		203,730
M&E - 1.50% - Landmark		8,745,878		16,345,831		23,254,199		7,443,102
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		2,427,269		4,252,898		2,227,947		2,147,352
M&E - 1.50% - Freedom		243,791		548,856		2,052,601		121,240
M&E - 1.55% - Landmark		13,924,017		11,489,788		53,684,897		13,833,115
M&E - 1.55% - Landmark ML		2,040,372		1,782,397		3,718,179		2,012,757
M&E - 1.65% - Freedom		1,869,904		1,053,344		2,360,641		526,056
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

48

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Morgan Stanley Active International Allocation VP Subaccount		Transamerica Multi Managed Large Cap Core VP Subaccount		Transamerica Money Market VP Subaccount		Transamerica Morgan Stanley Mid-Cap Growth VP Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

49

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Morgan Stanley Active International Allocation VP Subaccount		Transamerica Multi Managed Large Cap Core VP Subaccount		Transamerica Money Market VP Subaccount		Transamerica Morgan Stanley Mid-Cap Growth VP Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.289168	$	1.303628	$	1.081306	$	1.109148
M&E - 1.25% - Landmark ML	$	1.289168	$	1.303628	$	1.081306	$	1.109148
M&E - 1.25% - Freedom	$	0.852323	$	0.984005	$	1.011863	$	1.246029
M&E - 1.30% - Landmark	$	1.554192	$	1.424304	$	1.064042	$	1.499222
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.554192	$	1.424304	$	1.064042	$	1.499222
M&E - 1.40% - Landmark	$	1.877702	$	3.583343	$	1.443835	$	1.093306
M&E - 1.40% - Landmark ML	$	1.877702	$	3.583343	$	1.443835	$	1.093306
M&E - 1.40% - Freedom	$	1.410001	$	1.345419	$	1.065836	$	1.645247
M&E - 1.50% - Landmark	$	1.258782	$	1.272903	$	1.055804	$	1.082927
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.258782	$	1.272903	$	1.055804	$	1.082927
M&E - 1.50% - Freedom	$	1.611756	$	2.644912	$	1.339818	$	1.082927
M&E - 1.55% - Landmark	$	1.840235	$	3.511899	$	1.415097	$	1.077792
M&E - 1.55% - Landmark ML	$	1.840568	$	3.512499	$	1.415331	$	1.077792
M&E - 1.65% - Freedom	$	1.580098	$	2.592878	$	1.313471	$	1.067561
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.489191	$	1.364748	$	1.019591	$	1.436545
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.489191	$	1.364748	$	1.019591	$	1.436545

See accompanying notes.

50

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Morgan Stanley Active International Allocation VP Subaccount		Transamerica Multi Managed Large Cap Core VP Subaccount		Transamerica Money Market VP Subaccount		Transamerica Morgan Stanley Mid-Cap Growth VP Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	1.457831	$	1.336019	$	0.998096	$	1.406270
M&E - 2.05% - Landmark ML	$	1.457831	$	1.336019	$	0.998096	$	1.406270
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

51

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Morgan Stanley Active International Allocation VP Subaccount		Transamerica Multi Managed Large Cap Core VP Subaccount		Transamerica Money Market VP Subaccount		Transamerica Morgan Stanley Mid-Cap Growth VP Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		2,007,261		2,771,681		41,087,858		2,894,962
M&E - 1.30% - Suntrust Landmark		36,474		148,558		632,765		45,253
M&E - 1.30% - Landmark Select		20,364		87,300		1,024,544		18,137
M&E - 1.30% - Huntington Landmark		109,241		51,373		1,002,475		56,134
M&E - 1.30% - Landmark ML		152,577		177,996		3,624,745		87,595
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		928,715		973,844		11,839,974		1,087,011
M&E - 1.50% - Suntrust Landmark		48,285		12,641		555,914		12,583
M&E - 1.50% - Landmark Select		—		2,518		100,576		22,290
M&E - 1.50% - Huntington Landmark		3,466		13,667		666,662		141,264
M&E - 1.50% - Landmark ML		104,159		52,891		646,368		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		59,202		67,975		570,294		64,479
M&E - 1.70% - Freedom		657,749		1,413,201		5,034,842		425,697
M&E - 1.80% - Landmark		201,777		883,743		4,601,316		68,634
M&E - 1.80% - Suntrust Landmark		—		—		8,304		—
M&E - 1.80% - Landmark Select		—		—		115,526		—
M&E - 1.80% - Huntington Landmark		4,081		—		438,250		—
M&E - 1.80% - Landmark ML		12,310		47,131		398,059		—

See accompanying notes.

52

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Morgan Stanley Active International Allocation VP Subaccount		Transamerica Multi Managed Large Cap Core VP Subaccount		Transamerica Money Market VP Subaccount		Transamerica Morgan Stanley Mid-Cap Growth VP Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		46,478		255,881		159,345		21,569
M&E - 1.90% - Freedom		142,155		462,258		729,816		127,658
M&E - 1.95% - Landmark		—		—		1,356,987		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		207,638		—
M&E - 2.00% - Landmark		55,788		9,074		654,620		76,627
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		87,104		19,188
M&E - 2.00% - Landmark ML		—		—		235,643		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		312,645		270,710		452,319		26,437
M&E - 2.20% - Freedom		392,584		51,726		252,276		52,988
M&E - 2.30% - Landmark		—		—		—		2,879
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		11,718		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

53

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Morgan Stanley Active International Allocation VP Subaccount		Transamerica Multi Managed Large Cap Core VP Subaccount		Transamerica Money Market VP Subaccount		Transamerica Morgan Stanley Mid-Cap Growth VP Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	1.858979	$	1.544789	$	1.050711	$	1.916075
M&E - 1.30% - Suntrust Landmark	$	1.858979	$	1.544789	$	1.050711	$	1.916075
M&E - 1.30% - Landmark Select	$	1.858979	$	1.544789	$	1.050711	$	1.916075
M&E - 1.30% - Huntington Landmark	$	0.856735	$	0.989305	$	0.992617	$	1.201029
M&E - 1.30% - Landmark ML	$	1.858979	$	1.544789	$	1.050711	$	1.916075
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.831042	$	1.521607	$	1.034921	$	1.887300
M&E - 1.50% - Suntrust Landmark	$	1.831042	$	1.521607	$	1.034921	$	1.887300
M&E - 1.50% - Landmark Select	$	1.831042	$	1.521607	$	1.034921	$	1.887300
M&E - 1.50% - Huntington Landmark	$	0.851147	$	0.982860	$	0.986172	$	1.193209
M&E - 1.50% - Landmark ML	$	1.831042	$	1.521607	$	1.034921	$	1.887300
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	1.810448	$	1.504454	$	1.023242	$	1.866045
M&E - 1.70% - Freedom	$	0.943609	$	1.076780	$	1.020273	$	1.299896
M&E - 1.80% - Landmark	$	1.790060	$	1.487513	$	1.011740	$	1.845080
M&E - 1.80% - Suntrust Landmark	$	1.790060	$	1.487513	$	1.011740	$	1.845080
M&E - 1.80% - Landmark Select	$	1.790060	$	1.487513	$	1.011740	$	1.845080
M&E - 1.80% - Huntington Landmark	$	0.842889	$	0.973303	$	0.976555	$	1.181601
M&E - 1.80% - Landmark ML	$	1.790060	$	1.487513	$	1.011740	$	1.845080

See accompanying notes.

54

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Morgan Stanley Active International Allocation VP Subaccount		Transamerica Multi Managed Large Cap Core VP Subaccount		Transamerica Money Market VP Subaccount		Transamerica Morgan Stanley Mid-Cap Growth VP Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.783352	$	1.481932	$	1.007901	$	1.838075
M&E - 1.90% - Freedom	$	0.935021	$	1.066931	$	1.010924	$	1.287990
M&E - 1.95% - Landmark	$	—	$	—	$	1.007723	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	0.963061	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	0.963061	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	0.963061	$	—
M&E - 2.00% - Landmark	$	1.763333	$	1.465249	$	0.996632	$	1.817472
M&E - 2.00% - Suntrust Landmark	$	1.763333	$	1.465249	$	0.996632	$	1.817472
M&E - 2.00% - Landmark Select	$	1.763333	$	1.465249	$	0.996632	$	1.817472
M&E - 2.00% - Huntington Landmark	$	0.837413	$	0.967005	$	0.970245	$	1.173932
M&E - 2.00% - Landmark ML	$	1.763333	$	1.465249	$	0.996632	$	1.817472
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	1.743544	$	1.448837	$	0.985442	$	1.797079
M&E - 2.20% - Freedom	$	0.922243	$	1.052378	$	0.997158	$	1.270460
M&E - 2.30% - Landmark	$	1.724012	$	1.432608	$	0.974377	$	1.776941
M&E - 2.30% - Suntrust Landmark	$	1.724012	$	1.432608	$	0.974377	$	1.776941
M&E - 2.30% - Landmark Select	$	1.724012	$	1.432608	$	0.974377	$	1.776941
M&E - 2.30% - Huntington Landmark	$	0.829303	$	0.957640	$	0.960863	$	1.162568
M&E - 2.30% - Landmark ML	$	1.724012	$	1.432608	$	0.974377	$	1.776941
M&E - 2.35% - Freedom	$	—	$	—	$	0.952007	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	0.949305	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	0.949305	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	0.949305	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	0.949305	$	—

See accompanying notes.

55

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica International Moderate Growth VP - SC Subaccount		Transamerica Small/Mid Cap Value VP Subaccount		Transamerica Index 50 VP - SC Subaccount		Transamerica Index 75 VP - SC Subaccount
Assets
Investment in securities:
Number of shares - Initial		—		7,313,905.173		—		—
Cost	$	—	$	110,095,684	$	—	$	—
Number of shares - Service		18,747,738.104		732,907.596		8,174,312.968		18,398,245.542
Cost	$	164,843,424	$	12,579,763	$	76,652,919	$	153,508,876
Investments in mutual funds,
Level 1 quoted prices at net asset value	$	169,854,507	$	167,790,401	$	85,012,855	$	181,958,648
Receivable for units sold		—		—		—		—
Total assets		169,854,507		167,790,401		85,012,855		181,958,648
Liabilities
Payable for units redeemed		170		661		13		138
	$	169,854,337	$	167,789,740	$	85,012,842	$	181,958,510
Net Assets:
Deferred annuity contracts terminable by owners	$	169,854,337	$	167,789,740	$	85,012,842	$	181,958,510
Total net assets	$	169,854,337	$	167,789,740	$	85,012,842	$	181,958,510

See accompanying notes.

56

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica International  Moderate Growth VP - SC Subaccount		Transamerica Small/Mid Cap  Value VP Subaccount		Transamerica Index 50 VP - SC Subaccount		Transamerica Index 75 VP - SC Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		6,463,490		—		—
M&E - 1.25% - Landmark ML		—		1,547,738		—		—
M&E - 1.25% - Freedom		—		1,083,400		—		—
M&E - 1.30% - Landmark		—		636,917		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		58,787		—		—
M&E - 1.40% - Landmark		—		6,976,760		—		—
M&E - 1.40% - Landmark ML		—		1,617,241		—		—
M&E - 1.40% - Freedom		—		6,704,008		—		—
M&E - 1.50% - Landmark		—		16,772,110		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		5,060,895		—		—
M&E - 1.50% - Freedom		—		47,804		—		—
M&E - 1.55% - Landmark		—		905,661		—		—
M&E - 1.55% - Landmark ML		—		737,946		—		—
M&E - 1.65% - Freedom		—		327,915		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

57

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica International  Moderate Growth VP - SC Subaccount		Transamerica Small/Mid Cap Value VP Subaccount		Transamerica Index 50 VP - SC Subaccount		Transamerica Index 75 VP - SC Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

58

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica International  Moderate Growth VP - SC Subaccount		Transamerica Small/Mid Cap  Value VP Subaccount		Transamerica Index 50 VP - SC Subaccount		Transamerica Index 75 VP - SC Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	2.172744	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	2.172744	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	1.185467	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	2.310370	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	2.310370	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	6.940581	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	6.940581	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	1.915306	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	2.121571	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	2.121571	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	6.373715	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	6.802210	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	6.803386	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	6.248400	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	2.213754	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	2.213754	$	—	$	—

See accompanying notes.

59

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica International  Moderate Growth VP - SC Subaccount		Transamerica Small/Mid Cap Value VP Subaccount		Transamerica Index 50 VP - SC Subaccount		Transamerica Index 75 VP - SC Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	2.167177	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	2.167177	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

60

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica International  Moderate Growth VP - SC Subaccount		Transamerica Small/Mid Cap Value VP Subaccount		Transamerica Index 50 VP - SC Subaccount		Transamerica Index 75 VP - SC Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		597,980		—		32,518		163,793
M&E - 1.25% - Landmark ML		2,471		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		87,110,047		8,424,410		53,534,526		115,067,801
M&E - 1.30% - Suntrust Landmark		211,495		—		—		—
M&E - 1.30% - Landmark Select		803,509		—		87,372		858,422
M&E - 1.30% - Huntington Landmark		3,209,423		69,076		1,886,930		1,992,652
M&E - 1.30% - Landmark ML		11,810,605		11,122		3,494,376		7,528,559
M&E - 1.40% - Landmark		170,261		—		—		62,378
M&E - 1.40% - Landmark ML		91,197		—		—		—
M&E - 1.40% - Freedom		146,454		—		—		—
M&E - 1.50% - Landmark		26,961,024		2,527,108		9,725,817		35,069,153
M&E - 1.50% - Suntrust Landmark		19,684		—		—		—
M&E - 1.50% - Landmark Select		236,929		—		—		79,104
M&E - 1.50% - Huntington Landmark		1,625,548		57,922		897,291		2,357,091
M&E - 1.50% - Landmark ML		2,775,435		165,426		353,158		1,481,646
M&E - 1.50% - Freedom		229,339		—		—		3,000
M&E - 1.55% - Landmark		3,187,115		—		310,278		434,270
M&E - 1.55% - Landmark ML		553,567		—		—		—
M&E - 1.65% - Freedom		394,654		13,645		—		—
M&E - 1.70% - Freedom		11,013,955		857,646		613,466		6,041,137
M&E - 1.80% - Landmark		13,106,496		159,206		5,012,987		6,214,420
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		923,534		—		—		—
M&E - 1.80% - Huntington Landmark		424,133		—		60,935		325,107
M&E - 1.80% - Landmark ML		450,242		—		523,301		199,547

See accompanying notes.

61

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica International  Moderate Growth VP - SC Subaccount		Transamerica Small/Mid Cap  Value VP Subaccount		Transamerica Index 50 VP - SC Subaccount		Transamerica Index 75 VP - SC Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		31,415		2,542		5,821		—
M&E - 1.90% - Freedom		2,096,589		195,854		231,911		1,143,705
M&E - 1.95% - Landmark		3,851,805		—		4,452,796		4,665,726
M&E - 1.95% - Landmark Select		50,293		—		—		50,768
M&E - 1.95% - Huntington Landmark		21,248		—		—		—
M&E - 1.95% - Landmark ML		449,486		—		—		147,071
M&E - 2.00% - Landmark		2,677,758		82,096		1,041,894		1,536,146
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		78,410		—		—		—
M&E - 2.00% - Landmark ML		312,417		—		12,532		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		419,644		82,378		11,170		4,302
M&E - 2.20% - Freedom		488,435		9,579		—		—
M&E - 2.30% - Landmark		12,190		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		940,227		—		109,564		85,954
M&E - 2.45% - Landmark		18,004		—		423,345		464,385
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		37,610
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

62

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica International  Moderate Growth VP - SC Subaccount		Transamerica Small/Mid Cap  Value VP Subaccount		Transamerica Index 50 VP - SC Subaccount		Transamerica Index 75 VP - SC Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	0.967652	$	—	$	1.089393	$	1.115713
M&E - 1.25% - Landmark ML	$	0.967652	$	—	$	1.030714	$	0.981646
M&E - 1.25% - Freedom	$	—	$	—	$	1.089393	$	1.115713
M&E - 1.30% - Landmark	$	0.965399	$	1.200178	$	1.029338	$	0.980374
M&E - 1.30% - Suntrust Landmark	$	0.965399	$	—	$	1.029338	$	0.980374
M&E - 1.30% - Landmark Select	$	0.965399	$	1.200178	$	1.029338	$	0.980374
M&E - 1.30% - Huntington Landmark	$	0.905078	$	1.200178	$	1.029338	$	0.980374
M&E - 1.30% - Landmark ML	$	0.965399	$	1.200178	$	1.029338	$	0.980374
M&E - 1.40% - Landmark	$	0.960974	$	—	$	1.087596	$	1.113867
M&E - 1.40% - Landmark ML	$	0.960974	$	—	$	1.026637	$	0.977792
M&E - 1.40% - Freedom	$	0.960974	$	—	$	1.087596	$	1.113867
M&E - 1.50% - Landmark	$	0.956557	$	1.193232	$	1.023942	$	0.975207
M&E - 1.50% - Suntrust Landmark	$	0.956557	$	—	$	1.023942	$	0.975207
M&E - 1.50% - Landmark Select	$	0.956557	$	1.193232	$	1.023942	$	0.975207
M&E - 1.50% - Huntington Landmark	$	0.899173	$	1.193232	$	1.023942	$	0.975207
M&E - 1.50% - Landmark ML	$	0.956557	$	1.193232	$	1.023942	$	0.975207
M&E - 1.50% - Freedom	$	0.956557	$	—	$	1.086383	$	1.112634
M&E - 1.55% - Landmark	$	0.954359	$	—	$	1.085798	$	1.112020
M&E - 1.55% - Landmark ML	$	0.954359	$	—	$	1.022598	$	0.973918
M&E - 1.65% - Freedom	$	0.949963	$	1.188049	$	1.019934	$	0.971384
M&E - 1.70% - Freedom	$	0.947809	$	1.186356	$	1.018584	$	0.970105
M&E - 1.80% - Landmark	$	0.943458	$	1.182908	$	1.015898	$	0.967555
M&E - 1.80% - Suntrust Landmark	$	0.943458	$	—	$	1.015898	$	0.967555
M&E - 1.80% - Landmark Select	$	0.943458	$	1.182908	$	1.015898	$	0.967555
M&E - 1.80% - Huntington Landmark	$	0.890435	$	1.182908	$	1.015898	$	0.967555
M&E - 1.80% - Landmark ML	$	0.943458	$	1.182908	$	1.015898	$	0.967555

See accompanying notes.

63

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica International  Moderate Growth VP - SC Subaccount		Transamerica Small/Mid Cap  Value VP Subaccount		Transamerica Index 50 VP - SC Subaccount		Transamerica Index 75 VP - SC Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	0.941300	$	1.181205	$	1.014580	$	0.966294
M&E - 1.90% - Freedom	$	0.939130	$	1.179470	$	1.013256	$	0.965040
M&E - 1.95% - Landmark	$	0.936974	$	1.177784	$	1.011917	$	0.963772
M&E - 1.95% - Landmark Select	$	0.939166	$	—	$	1.011917	$	0.963772
M&E - 1.95% - Huntington Landmark	$	0.939166	$	—	$	1.011917	$	0.963772
M&E - 1.95% - Landmark ML	$	0.939166	$	—	$	1.011917	$	0.963772
M&E - 2.00% - Landmark	$	0.934834	$	1.176077	$	1.010594	$	0.962507
M&E - 2.00% - Suntrust Landmark	$	0.934834	$	—	$	1.010594	$	0.962507
M&E - 2.00% - Landmark Select	$	0.934834	$	1.176077	$	1.010594	$	0.962507
M&E - 2.00% - Huntington Landmark	$	0.884680	$	1.176077	$	1.010594	$	0.962507
M&E - 2.00% - Landmark ML	$	0.934834	$	1.176077	$	1.010594	$	0.962507
M&E - 2.05% - Landmark	$	0.932693	$	—	$	1.079859	$	1.105944
M&E - 2.05% - Landmark ML	$	0.932693	$	—	$	1.009293	$	0.961242
M&E - 2.15% - Freedom	$	0.928429	$	1.171007	$	1.006651	$	0.958745
M&E - 2.20% - Freedom	$	0.926307	$	1.169323	$	1.005336	$	0.957485
M&E - 2.30% - Landmark	$	0.922095	$	1.165962	$	1.002699	$	0.954989
M&E - 2.30% - Suntrust Landmark	$	0.922095	$	—	$	1.002699	$	0.954989
M&E - 2.30% - Landmark Select	$	0.922095	$	1.165962	$	1.002699	$	0.954989
M&E - 2.30% - Huntington Landmark	$	0.876124	$	1.165962	$	1.002699	$	0.954989
M&E - 2.30% - Landmark ML	$	0.922095	$	1.165962	$	1.002699	$	0.954989
M&E - 2.35% - Freedom	$	0.928410	$	—	$	1.001395	$	0.953742
M&E - 2.45% - Landmark	$	0.925739	$	—	$	0.998799	$	0.951266
M&E - 2.45% - Landmark Select	$	0.925739	$	—	$	0.998799	$	0.951266
M&E - 2.45% - Huntington Landmark	$	0.925739	$	—	$	0.998799	$	0.951266
M&E - 2.45% - Landmark ML	$	0.925739	$	—	$	0.998799	$	0.951266

See accompanying notes.

64

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Efficient Markets VP - SC Subaccount		Transamerica BlackRock Global Allocation VP - SC Subaccount		Transamerica BlackRock  Tactical Allocation VP - SC Subaccount		Transamerica ProFunds  UltraBear VP - SC OAM Subaccount
Assets
Investment in securities:
Number of shares - Initial		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Number of shares - Service		1,634,163.518		23,381,473.318		7,517,730.048		1,746,551.840
Cost	$	19,855,302	$	286,016,449	$	94,629,906	$	8,979,813
Investments in mutual funds, Level 1 quoted prices at net asset value	$	21,946,816	$	310,739,780	$	101,263,824	$	7,265,656
Receivable for units sold		—		27		9		13
Total assets		21,946,816		310,739,807		101,263,833		7,265,669
Liabilities
Payable for units redeemed		11		—		—		—
	$	21,946,805	$	310,739,807	$	101,263,833	$	7,265,669
Net Assets:
Deferred annuity contract sterminable by owners	$	21,946,805	$	310,739,807	$	101,263,833	$	7,265,669
Total net assets	$	21,946,805	$	310,739,807	$	101,263,833	$	7,265,669

See accompanying notes.

65

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Efficient Markets VP - SC Subaccount		Transamerica BlackRock  Global Allocation VP - SC Subaccount		Transamerica BlackRock Tactical Allocation VP - SC Subaccount		Transamerica ProFunds UltraBear VP - SC OAM Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

66

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Efficient Markets VP - SC Subaccount		Transamerica BlackRock  Global Allocation VP - SC Subaccount		Transamerica BlackRock Tactical Allocation VP - SC Subaccount		Transamerica ProFundsUltraBear VP - SC OAM Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

67

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Efficient Markets VP - SC Subaccount		Transamerica BlackRock  Global Allocation VP - SC Subaccount		Transamerica BlackRock Tactical Allocation VP - SC Subaccount		Transamerica ProFunds UltraBear VP - SC OAM Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

68

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Efficient Markets VP - SC Subaccount		Transamerica BlackRock  Global Allocation VP - SC Subaccount		Transamerica BlackRock Tactical Allocation VP - SC Subaccount		Transamerica ProFunds UltraBear VP - SC OAM Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

69

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Efficient Markets VP - SC Subaccount		Transamerica BlackRock  Global Allocation VP - SC Subaccount		Transamerica BlackRock Tactical Allocation VP - SC Subaccount		Transamerica ProFunds UltraBear VP - SC OAM Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		1,113,301		—
M&E - 1.25% - Landmark ML		—		318,756		80,416		—
M&E - 1.25% - Freedom		—		—		55,765		—
M&E - 1.30% - Landmark		10,601,313		130,137,736		38,165,945		11,667,751
M&E - 1.30% - Suntrust Landmark		—		—		13,842		—
M&E - 1.30% - Landmark Select		—		—		21,145		—
M&E - 1.30% - Huntington Landmark		39,294		5,502,055		4,835,279		228,374
M&E - 1.30% - Landmark ML		172,568		22,295,199		2,301,922		—
M&E - 1.40% - Landmark		—		—		690,269		—
M&E - 1.40% - Landmark ML		—		1,599,919		122,003		—
M&E - 1.40% - Freedom		—		—		395,084		—
M&E - 1.50% - Landmark		2,409,768		33,542,968		11,903,809		3,584,184
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		7,144		—
M&E - 1.50% - Huntington Landmark		5,707		1,632,996		1,442,719		115,120
M&E - 1.50% - Landmark ML		75,489		8,028,329		585,586		—
M&E - 1.50% - Freedom		—		—		624,121		—
M&E - 1.55% - Landmark		—		—		8,436,377		—
M&E - 1.55% - Landmark ML		—		7,196,894		151,966		—
M&E - 1.65% - Freedom		—		—		447,047		—
M&E - 1.70% - Freedom		381,269		8,245,776		2,147,695		1,246,374
M&E - 1.80% - Landmark		360,030		11,804,994		2,076,094		435,949
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		711,891		766,144		5,483
M&E - 1.80% - Landmark ML		22,265		2,509,431		100,482		—

See accompanying notes.

70

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica  Efficient Markets VP - SC Subaccount		Transamerica BlackRock  Global Allocation VP - SC Subaccount		Transamerica BlackRock Tactical Allocation VP - SC Subaccount		Transamerica ProFunds UltraBear VP - SC OAM Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		1,580		—		943,772		—
M&E - 1.90% - Freedom		69,530		1,742,008		439,035		470,431
M&E - 1.95% - Landmark		2,020,588		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		37,263		—		—		—
M&E - 2.00% - Landmark		176,101		2,480,620		670,713		65,292
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		50,237		2,511		58,804
M&E - 2.00% - Landmark ML		15,944		582,535		109,496		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		269,440		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		50,761		—		—		—
M&E - 2.45% - Landmark		5,825		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

71

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Efficient Markets VP - SC Subaccount		Transamerica BlackRock Global Allocation VP -  SC Subaccount		Transamerica BlackRock Tactical Allocation VP - SC Subaccount		Transamerica ProFunds UltraBear VP - SC OAM Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	1.102517	$	—
M&E - 1.25% - Landmark ML	$	—	$	1.305361	$	1.102517	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	1.102517	$	—
M&E - 1.30% - Landmark	$	1.338654	$	1.304287	$	1.327154	$	0.407092
M&E - 1.30% - Suntrust Landmark	$	1.104063	$	—	$	1.101913	$	—
M&E - 1.30% - Landmark Select	$	1.338654	$	—	$	1.101913	$	—
M&E - 1.30% - Huntington Landmark	$	1.338654	$	1.304287	$	1.327154	$	0.407092
M&E - 1.30% - Landmark ML	$	1.338654	$	1.304287	$	1.327154	$	0.407092
M&E - 1.40% - Landmark	$	—	$	—	$	1.100689	$	—
M&E - 1.40% - Landmark ML	$	—	$	1.302136	$	1.100689	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	1.100689	$	—
M&E - 1.50% - Landmark	$	1.333021	$	1.300004	$	1.322799	$	0.405751
M&E - 1.50% - Suntrust Landmark	$	1.101632	$	—	$	1.099477	$	—
M&E - 1.50% - Landmark Select	$	1.333021	$	—	$	1.099477	$	—
M&E - 1.50% - Huntington Landmark	$	1.333021	$	1.300004	$	1.322799	$	0.405751
M&E - 1.50% - Landmark ML	$	1.333021	$	1.300004	$	1.322799	$	0.405751
M&E - 1.50% - Freedom	$	—	$	—	$	1.099477	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	1.098884	$	—
M&E - 1.55% - Landmark ML	$	—	$	1.298946	$	1.098884	$	—
M&E - 1.65% - Freedom	$	1.328803	$	—	$	1.097671	$	—
M&E - 1.70% - Freedom	$	1.327402	$	1.295746	$	1.318472	$	0.404424
M&E - 1.80% - Landmark	$	1.324610	$	1.293642	$	1.316306	$	0.403747
M&E - 1.80% - Suntrust Landmark	$	1.098003	$	—	$	1.095871	$	—
M&E - 1.80% - Landmark Select	$	1.324610	$	—	$	1.095871	$	—
M&E - 1.80% - Huntington Landmark	$	1.324610	$	1.293642	$	1.316306	$	0.403747
M&E - 1.80% - Landmark ML	$	1.324610	$	1.293642	$	1.316306	$	0.403747

See accompanying notes.

72

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Efficient Markets VP - SC Subaccount		Transamerica BlackRock Global Allocation VP -  SC Subaccount		Transamerica BlackRock Tactical Allocation VP - SC Subaccount		Transamerica ProFunds UltraBear VP - SC OAM Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.323210	$	—	$	1.095263	$	—
M&E - 1.90% - Freedom	$	1.321829	$	1.291530	$	1.314161	$	0.403088
M&E - 1.95% - Landmark	$	1.320461	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	1.320461	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	1.320461	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	1.320461	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.319059	$	1.289421	$	1.312019	$	0.402430
M&E - 2.00% - Suntrust Landmark	$	1.095602	$	—	$	1.093467	$	—
M&E - 2.00% - Landmark Select	$	1.319059	$	—	$	1.093467	$	—
M&E - 2.00% - Huntington Landmark	$	1.319059	$	1.289421	$	1.312019	$	0.402430
M&E - 2.00% - Landmark ML	$	1.319059	$	1.289421	$	1.312019	$	0.402430
M&E - 2.05% - Landmark	$	—	$	—	$	1.092869	$	—
M&E - 2.05% - Landmark ML	$	—	$	1.288367	$	1.092869	$	—
M&E - 2.15% - Freedom	$	1.314939	$	—	$	1.091672	$	—
M&E - 2.20% - Freedom	$	1.313547	$	1.285208	$	1.307733	$	—
M&E - 2.30% - Landmark	$	1.310801	$	1.283132	$	1.305597	$	—
M&E - 2.30% - Suntrust Landmark	$	1.092012	$	—	$	1.089880	$	—
M&E - 2.30% - Landmark Select	$	1.310801	$	—	$	1.089880	$	—
M&E - 2.30% - Huntington Landmark	$	1.310801	$	1.283132	$	1.305597	$	—
M&E - 2.30% - Landmark ML	$	1.310801	$	1.283132	$	1.305597	$	—
M&E - 2.35% - Freedom	$	1.309423	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	1.306699	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	1.306699	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	1.306699	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	1.306699	$	—	$	—	$	—

See accompanying notes.

73

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Foxhall Global Growth VP - SC Subaccount		Transamerica Foxhall Global Conservative VP - SC Subaccount		Transamerica Foxhall Global Hard Asset VP - SC Subaccount		Transamerica Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount
Assets
Investment in securities:
Number of shares - Initial		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Number of shares - Service		1,538,169.221		1,398,687.511		1,610,598.695		1,859,534.191
Cost	$	16,720,418	$	13,498,351	$	16,139,007	$	19,747,975
Investments in mutual funds,
Level 1 quoted prices at net asset value	$	17,688,946	$	13,217,597	$	17,072,346	$	20,808,188
Receivable for units sold		—		28		—		—
Total assets		17,688,946		13,217,625		17,072,346		20,808,188
Liabilities
Payable for units redeemed		—		—		1		22
	$	17,688,946	$	13,217,625	$	17,072,345	$	20,808,166
Net Assets:
Deferred annuity contracts terminable by owners	$	17,688,946	$	13,217,625	$	17,072,345	$	20,808,166
Total net assets	$	17,688,946	$	13,217,625	$	17,072,345	$	20,808,166

See accompanying notes.

74

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Foxhall Global Growth VP - SC Subaccount		Transamerica Foxhall Global Conservative VP - SC Subaccount		Transamerica Foxhall Global Hard Asset VP  - SC Subaccount		Transamerica Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

75

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Foxhall Global Growth VP - SC Subaccount		Transamerica Foxhall Global Conservative VP - SC Subaccount		Transamerica Foxhall Global Hard Asset VP  - SC Subaccount		Transamerica Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

76

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Foxhall Global Growth VP - SC Subaccount		Transamerica Foxhall Global Conservative VP - SC Subaccount		Transamerica Foxhall Global Hard Asset VP - SC Subaccount		Transamerica Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

77

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Foxhall Global Growth VP - SC Subaccount		Transamerica Foxhall Global Conservative VP - SC Subaccount		Transamerica Foxhall Global Hard Asset VP - SC Subaccount		Transamerica Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

78

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Foxhall Global Growth VP - SC Subaccount		Transamerica Foxhall Global Conservative VP - SC Subaccount		Transamerica Foxhall Global Hard Asset VP - SC Subaccount		Transamerica Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		11,269,096		10,347,318		11,511,405		14,069,494
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		869,956		479,268		35,418		35,452
M&E - 1.30% - Landmark ML		—		294,722		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		3,052,395		1,705,401		4,302,364		4,254,630
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		98,841		109,990		28,261		52,732
M&E - 1.50% - Landmark ML		—		40,224		—		21,950
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		703,963		451,326		619,896		1,113,410
M&E - 1.80% - Landmark		40,243		515,664		170,108		206,874
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		138,194		15,474		6,076		4,170
M&E - 1.80% - Landmark ML		—		44,051		—		—

See accompanying notes.

79

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Foxhall Global Growth VP - SC Subaccount		Transamerica Foxhall Global Conservative VP - SC Subaccount		Transamerica Foxhall Global Hard Asset VP - SC Subaccount		Transamerica Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		336,433		85,134		213,728		153,223
M&E - 1.95% - Landmark		—		320,656		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		152,775		56,058		77,935		223,477
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		243,922		—		8,982		28,114
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		52,624		52,610
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		40,387		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

80

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Foxhall Global Growth VP - SC Subaccount		Transamerica Foxhall Global Conservative VP - SC Subaccount		Transamerica Foxhall Global Hard Asset VP - SC Subaccount		Transamerica Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	1.047328	$	0.912020	$	1.003605	$	1.030252
M&E - 1.30% - Suntrust Landmark	$	1.047328	$	0.912020	$	1.003605	$	1.030252
M&E - 1.30% - Landmark Select	$	1.047328	$	0.912020	$	1.003605	$	1.030252
M&E - 1.30% - Huntington Landmark	$	1.047328	$	0.912020	$	1.003605	$	1.030252
M&E - 1.30% - Landmark ML	$	1.047328	$	0.912020	$	1.003605	$	1.030252
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.045031	$	0.910007	$	1.001403	$	1.027998
M&E - 1.50% - Suntrust Landmark	$	1.045031	$	0.910007	$	1.001403	$	1.027998
M&E - 1.50% - Landmark Select	$	1.045031	$	0.910007	$	1.001403	$	1.027998
M&E - 1.50% - Huntington Landmark	$	1.045031	$	0.910007	$	1.001403	$	1.027998
M&E - 1.50% - Landmark ML	$	1.045031	$	0.910007	$	1.001403	$	1.027998
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	1.042734	$	0.908012	$	0.999198	$	1.025727
M&E - 1.80% - Landmark	$	1.041576	$	0.907005	$	0.998105	$	1.024600
M&E - 1.80% - Suntrust Landmark	$	1.041576	$	0.907005	$	0.998105	$	1.024600
M&E - 1.80% - Landmark Select	$	1.041576	$	0.907005	$	0.998105	$	1.024600
M&E - 1.80% - Huntington Landmark	$	1.041576	$	0.907005	$	0.998105	$	1.024600
M&E - 1.80% - Landmark ML	$	1.041576	$	0.907005	$	0.998105	$	1.024600

See accompanying notes.

81

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Foxhall Global Growth VP - SC Subaccount		Transamerica Foxhall Global Conservative VP - SC Subaccount		Transamerica Foxhall Global Hard Asset VP - SC Subaccount		Transamerica  Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	1.040454	$	0.906012	$	0.997017	$	1.023470
M&E - 1.95% - Landmark	$	—	$	0.905524	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	0.905524	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	0.905524	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	0.905524	$	—	$	—
M&E - 2.00% - Landmark	$	1.039309	$	0.905016	$	0.995916	$	1.022358
M&E - 2.00% - Suntrust Landmark	$	1.039309	$	0.905016	$	0.995916	$	1.022358
M&E - 2.00% - Landmark Select	$	1.039309	$	0.905016	$	0.995916	$	1.022358
M&E - 2.00% - Huntington Landmark	$	1.039309	$	0.905016	$	0.995916	$	1.022358
M&E - 2.00% - Landmark ML	$	1.039309	$	0.905016	$	0.995916	$	1.022358
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	1.037022	$	0.903048	$	0.993730	$	1.020122
M&E - 2.30% - Landmark	$	1.035908	$	0.902049	$	0.992650	$	1.019015
M&E - 2.30% - Suntrust Landmark	$	1.035908	$	0.902049	$	0.992650	$	1.019015
M&E - 2.30% - Landmark Select	$	1.035908	$	0.902049	$	0.992650	$	1.019015
M&E - 2.30% - Huntington Landmark	$	1.035908	$	0.902049	$	0.992650	$	1.019015
M&E - 2.30% - Landmark ML	$	1.035908	$	0.902049	$	0.992650	$	1.019015
M&E - 2.35% - Freedom	$	—	$	0.901562	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	0.900578	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	0.900578	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	0.900578	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	0.900578	$	—	$	—

See accompanying notes.

82

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Hanlon Growth VP - SC Subaccount		Transamerica Hanlon Growth and Income VP - SC Subaccount		Transamerica Hanlon Balanced VP - SC Subaccount		Transamerica Hanlon Managed Income VP - SC Subaccount
Assets
Investment in securities:
Number of shares - Initial		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Number of shares - Service		1,292,836.560		1,418,139.157		2,803,123.229		12,185,177.589
Cost	$	13,961,502	$	15,291,331	$	30,327,961	$	135,321,118
Investments in mutual funds, Level 1 quoted prices at net asset value	$	14,531,483	$	15,698,800	$	30,638,137	$	134,524,361
Receivable for units sold		—		12		61		118
Total assets		14,531,483		15,698,812		30,638,198		134,524,479
Liabilities
Payable for units redeemed		7		—		—		—
	$	14,531,476	$	15,698,812	$	30,638,198	$	134,524,479
Net Assets:
Deferred annuity contracts terminable by owners	$	14,531,476	$	15,698,812	$	30,638,198	$	134,524,479
Total net assets	$	14,531,476	$	15,698,812	$	30,638,198	$	134,524,479

See accompanying notes.

83

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Hanlon Growth VP - SC Subaccount		Transamerica Hanlon Growth and Income VP - SC Subaccount		Transamerica Hanlon Balanced VP - SC Subaccount		Transamerica Hanlon Managed Income VP - SC Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

84

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Hanlon Growth VP - SC Subaccount		Transamerica Hanlon Growth and Income VP - SC Subaccount		Transamerica Hanlon Balanced VP - SC Subaccount		Transamerica Hanlon Managed Income VP - SC Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

85

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Hanlon Growth VP - SC Subaccount		Transamerica Hanlon Growth and Income VP - SC Subaccount		Transamerica Hanlon Balanced VP - SC Subaccount		Transamerica Hanlon Managed Income VP - SC Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

86

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Hanlon Growth VP - SC Subaccount		Transamerica Hanlon Growth and Income VP -  SC Subaccount		Transamerica Hanlon Balanced VP - SC Subaccount		Transamerica Hanlon Managed Income VP - SC Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

87

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Hanlon Growth VP - SC Subaccount		Transamerica Hanlon Growth and Income VP -  SC Subaccount		Transamerica Hanlon Balanced VP - SC Subaccount		Transamerica Hanlon Managed Income VP - SC Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		10,243,894		11,520,760		21,408,647		89,620,701
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		3,614		26,556		3,666		18,033
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		3,023,113		3,059,329		5,339,434		22,180,928
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		2,471
M&E - 1.50% - Huntington Landmark		12,363		—		—		32,430
M&E - 1.50% - Landmark ML		—		—		—		15,957
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		478,888		873,012		3,241,719		19,555,123
M&E - 1.80% - Landmark		612,824		148,851		1,046,269		2,270,912
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

88

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Hanlon Growth VP - SC Subaccount		Transamerica Hanlon Growth and Income VP -  SC Subaccount		Transamerica Hanlon Balanced VP - SC Subaccount		Transamerica Hanlon Managed Income VP - SC Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		69,482		235,139		273,915		1,667,256
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		36,489		36,364		107,851		247,282
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		44,574		—		104,821		131,697
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

89

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Hanlon Growth VP - SC Subaccount		Transamerica Hanlon Growth and Income VP -  SC Subaccount		Transamerica Hanlon Balanced VP - SC Subaccount		Transamerica Hanlon Managed Income VP - SC Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	1.001344	$	0.988165	$	0.972919	$	0.992213
M&E - 1.30% - Suntrust Landmark	$	1.001344	$	0.988165	$	0.972919	$	0.992213
M&E - 1.30% - Landmark Select	$	1.001344	$	0.988165	$	0.972919	$	0.992213
M&E - 1.30% - Huntington Landmark	$	1.001344	$	0.988165	$	0.972919	$	0.992213
M&E - 1.30% - Landmark ML	$	1.001344	$	0.988165	$	0.972919	$	0.992213
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	0.999152	$	0.986000	$	0.970792	$	0.990002
M&E - 1.50% - Suntrust Landmark	$	0.999152	$	0.986000	$	0.970792	$	0.990002
M&E - 1.50% - Landmark Select	$	0.999152	$	0.986000	$	0.970792	$	0.990002
M&E - 1.50% - Huntington Landmark	$	0.999152	$	0.986000	$	0.970792	$	0.990002
M&E - 1.50% - Landmark ML	$	0.999152	$	0.986000	$	0.970792	$	0.990002
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	0.996956	$	0.983823	$	0.968645	$	0.987834
M&E - 1.80% - Landmark	$	0.995864	$	0.982753	$	0.967578	$	0.986747
M&E - 1.80% - Suntrust Landmark	$	0.995864	$	0.982753	$	0.967578	$	0.986747
M&E - 1.80% - Landmark Select	$	0.995864	$	0.982753	$	0.967578	$	0.986747
M&E - 1.80% - Huntington Landmark	$	0.995864	$	0.982753	$	0.967578	$	0.986747
M&E - 1.80% - Landmark ML	$	0.995864	$	0.982753	$	0.967578	$	0.986747

See accompanying notes.

90

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Hanlon Growth VP - SC Subaccount		Transamerica Hanlon Growth and Income VP -  SC Subaccount		Transamerica Hanlon Balanced VP - SC Subaccount		Transamerica Hanlon Managed Income VP - SC Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	0.994774	$	0.981666	$	0.966530	$	0.985670
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	0.993687	$	0.980601	$	0.965451	$	0.984590
M&E - 2.00% - Suntrust Landmark	$	0.993687	$	0.980601	$	0.965451	$	0.984590
M&E - 2.00% - Landmark Select	$	0.993687	$	0.980601	$	0.965451	$	0.984590
M&E - 2.00% - Huntington Landmark	$	0.993687	$	0.980601	$	0.965451	$	0.984590
M&E - 2.00% - Landmark ML	$	0.993687	$	0.980601	$	0.965451	$	0.984590
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	0.991502	$	0.978448	$	0.963337	$	0.982444
M&E - 2.30% - Landmark	$	0.990425	$	0.977377	$	0.962297	$	0.981363
M&E - 2.30% - Suntrust Landmark	$	0.990425	$	0.977377	$	0.962297	$	0.981363
M&E - 2.30% - Landmark Select	$	0.990425	$	0.977377	$	0.962297	$	0.981363
M&E - 2.30% - Huntington Landmark	$	0.990425	$	0.977377	$	0.962297	$	0.981363
M&E - 2.30% - Landmark ML	$	0.990425	$	0.977377	$	0.962297	$	0.981363
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

91

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Index 35 VP - SC Subaccount		Transamerica Index 100 VP - SC Subaccount		Transamerica JPMorgan Mid Cap Value VP - SC Subaccount		Invesco V.I. Basic Value Subaccount
Assets
Investment in securities:
Number of shares - Initial		—		—		—		3,768,907.642
Cost	$	—	$	—	$	—	$	26,443,889
Number of shares - Service		2,138,910.457		632,133.454		537,034.403		—
Cost	$	22,392,649	$	6,673,491	$	6,504,653	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	23,399,680	$	7,414,925	$	7,207,002	$	23,894,874
Receivable for units sold		—		—		6		9
Total assets		23,399,680		7,414,925		7,207,008		23,894,883
Liabilities
Payable for units redeemed		—		3		—		—
	$	23,399,680	$	7,414,922	$	7,207,008	$	23,894,883
Net Assets:
Deferred annuity contracts terminable by owners	$	23,399,680	$	7,414,922	$	7,207,008	$	23,894,883
Total net assets	$	23,399,680	$	7,414,922	$	7,207,008	$	23,894,883

See accompanying notes.

92

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Index 35 VP - SC Subaccount		Transamerica Index 100 VP - SC Subaccount		Transamerica JPMorgan Mid Cap Value VP - SC Subaccount		Invesco V.I. Basic Value Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—		—		1,231,664
M&E - 1.25% - Landmark ML		—		—		—		38,175
M&E - 1.25% - Freedom		—		—		—		6,730
M&E - 1.30% - Landmark		—		—		—		6,665,964
M&E - 1.30% - Suntrust Landmark		—		—		—		307,913
M&E - 1.30% - Landmark Select		—		—		—		9,832
M&E - 1.30% - Huntington Landmark		—		—		—		164,818
M&E - 1.30% - Landmark ML		—		—		—		370,126
M&E - 1.40% - Landmark		—		—		—		256,357
M&E - 1.40% - Landmark ML		—		—		—		103,061
M&E - 1.40% - Freedom		—		—		—		114,264
M&E - 1.50% - Landmark		—		—		—		2,479,020
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		12,003
M&E - 1.50% - Huntington Landmark		—		—		—		18,763
M&E - 1.50% - Landmark ML		—		—		—		73,815
M&E - 1.50% - Freedom		—		—		—		136,219
M&E - 1.55% - Landmark		—		—		—		12,045,108
M&E - 1.55% - Landmark ML		—		—		—		1,396,663
M&E - 1.65% - Freedom		—		—		—		167,072
M&E - 1.70% - Freedom		—		—		—		181,355
M&E - 1.80% - Landmark		—		—		—		150,789
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

93

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Index35 VP - SC Subaccount		Transamerica Index 100 VP - SC Subaccount		Transamerica JPMorgan Mid Cap Value VP - SC Subaccount		Invesco V.I. Basic Value Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		91,561
M&E - 1.90% - Freedom		—		—		—		18,148
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		4,775
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		101,645
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

94

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Index 35 VP - SC Subaccount		Transamerica Index 100 VP - SC Subaccount		Transamerica JPMorgan Mid Cap Value VP - SC Subaccount		Invesco V.I. Basic Value Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	0.931187
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	0.931187
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	0.699985
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	0.927187
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	0.927187
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	0.927187
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	0.727586
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	0.927187
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	0.919289
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	0.919289
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	0.897040
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	0.911460
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	0.911460
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	0.911460
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	0.722856
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	0.911460
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	0.911460
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	0.907557
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	0.907557
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	0.899866
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	0.764178
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	0.888410
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	0.888410
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	0.888410
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	0.715816
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	0.888410

See accompanying notes.

95

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Index 35 VP - SC Subaccount		Transamerica Index 100 VP - SC Subaccount		Transamerica JPMorgan Mid Cap Value VP - SC Subaccount		Invesco V.I. Basic Value Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	1.151156
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	0.757172
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	1.138226
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	1.138226
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	1.138226
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	0.711169
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	1.138226
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	0.869657
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	0.869657
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	1.125456
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	0.746820
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	1.112831
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	1.112831
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	1.112831
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	0.704283
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	1.112831
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

96

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Index 35 VP - SC Subaccount		Transamerica Index 100 VP - SC Subaccount		Transamerica JPMorgan Mid Cap Value VP - SC Subaccount		Invesco V.I. Basic Value Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		84,377		116,896		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		1,787		—
M&E - 1.30% - Landmark		14,449,210		4,352,000		1,561,054		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		1,254,062		—		36,649		—
M&E - 1.30% - Landmark ML		1,016,920		—		—		—
M&E - 1.40% - Landmark		7,183		12,496		293,688		—
M&E - 1.40% - Landmark ML		—		31,325		72,712		—
M&E - 1.40% - Freedom		—		—		26,000		—
M&E - 1.50% - Landmark		1,073,756		1,238,041		1,188,660		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		147,062		—		18,835		—
M&E - 1.50% - Landmark ML		297,927		—		30,955		—
M&E - 1.50% - Freedom		—		—		11,684		—
M&E - 1.55% - Landmark		—		452,083		1,992,607		—
M&E - 1.55% - Landmark ML		85,462		34,261		86,261		—
M&E - 1.65% - Freedom		112,627		—		35,402		—
M&E - 1.70% - Freedom		715,592		112,232		179,255		—
M&E - 1.80% - Landmark		2,138,945		79,687		15,916		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		31,249		—		—		—

See accompanying notes.

97

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Index 35 VP - SC Subaccount		Transamerica Index 100 VP - SC Subaccount		Transamerica JPMorgan Mid Cap Value VP - SC Subaccount		Invesco V.I. Basic Value Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		928		—		81,450		—
M&E - 1.95% - Landmark		284,589		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		98,793		17,434		32,440		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		3,015		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

98

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Index 35 VP - SC Subaccount		Transamerica Index 100 VP - SC Subaccount		Transamerica JPMorgan Mid Cap Value VP - SC Subaccount		Invesco V.I. Basic Value Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	1.079160	$	1.157637	$	1.249382	$	—
M&E - 1.25% - Landmark ML	$	1.079160	$	1.157637	$	1.249382	$	—
M&E - 1.25% - Freedom	$	1.079160	$	1.157637	$	1.249382	$	—
M&E - 1.30% - Landmark	$	1.078552	$	1.156985	$	1.248693	$	—
M&E - 1.30% - Suntrust Landmark	$	1.078552	$	1.156985	$	1.248693	$	—
M&E - 1.30% - Landmark Select	$	1.078552	$	1.156985	$	1.248693	$	—
M&E - 1.30% - Huntington Landmark	$	1.078552	$	1.156985	$	1.248693	$	—
M&E - 1.30% - Landmark ML	$	1.078552	$	1.156985	$	1.248693	$	—
M&E - 1.40% - Landmark	$	1.077372	$	1.155720	$	1.247323	$	—
M&E - 1.40% - Landmark ML	$	1.077372	$	1.155720	$	1.247323	$	—
M&E - 1.40% - Freedom	$	1.077372	$	1.155720	$	1.247323	$	—
M&E - 1.50% - Landmark	$	1.076184	$	1.154451	$	1.245950	$	—
M&E - 1.50% - Suntrust Landmark	$	1.076184	$	1.154451	$	1.245950	$	—
M&E - 1.50% - Landmark Select	$	1.076184	$	1.154451	$	1.245950	$	—
M&E - 1.50% - Huntington Landmark	$	1.076184	$	1.154451	$	1.245950	$	—
M&E - 1.50% - Landmark ML	$	1.076184	$	1.154451	$	1.245950	$	—
M&E - 1.50% - Freedom	$	1.076184	$	1.154451	$	1.245950	$	—
M&E - 1.55% - Landmark	$	1.075590	$	1.153818	$	1.245265	$	—
M&E - 1.55% - Landmark ML	$	1.075590	$	1.153818	$	1.245265	$	—
M&E - 1.65% - Freedom	$	1.074408	$	1.152543	$	1.243896	$	—
M&E - 1.70% - Freedom	$	1.073814	$	1.151914	$	1.243220	$	—
M&E - 1.80% - Landmark	$	1.072639	$	1.150649	$	1.241848	$	—
M&E - 1.80% - Suntrust Landmark	$	1.072639	$	1.150649	$	1.241848	$	—
M&E - 1.80% - Landmark Select	$	1.072639	$	1.150649	$	1.241848	$	—
M&E - 1.80% - Huntington Landmark	$	1.072639	$	1.150649	$	1.241848	$	—
M&E - 1.80% - Landmark ML	$	1.072639	$	1.150649	$	1.241848	$	—

See accompanying notes.

99

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Transamerica Index 35 VP - SC Subaccount		Transamerica Index 100 VP - SC Subaccount		Transamerica JPMorgan Mid Cap Value VP - SC Subaccount		Invesco V.I. Basic Value Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.072050	$	1.150020	$	1.241163	$	—
M&E - 1.90% - Freedom	$	1.071463	$	1.149386	$	1.240489	$	—
M&E - 1.95% - Landmark	$	1.070874	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	1.070874	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	1.070874	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	1.070874	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.070290	$	1.148129	$	1.239127	$	—
M&E - 2.00% - Suntrust Landmark	$	1.070290	$	1.148129	$	1.239127	$	—
M&E - 2.00% - Landmark Select	$	1.070290	$	1.148129	$	1.239127	$	—
M&E - 2.00% - Huntington Landmark	$	1.070290	$	1.148129	$	1.239127	$	—
M&E - 2.00% - Landmark ML	$	1.070290	$	1.148129	$	1.239127	$	—
M&E - 2.05% - Landmark	$	1.069707	$	1.147503	$	1.238443	$	—
M&E - 2.05% - Landmark ML	$	1.069707	$	1.147503	$	1.238443	$	—
M&E - 2.15% - Freedom	$	1.068541	$	1.146248	$	1.237099	$	—
M&E - 2.20% - Freedom	$	1.067950	$	1.145626	$	1.236422	$	—
M&E - 2.30% - Landmark	$	1.066785	$	1.144369	$	1.235071	$	—
M&E - 2.30% - Suntrust Landmark	$	1.066785	$	1.144369	$	1.235071	$	—
M&E - 2.30% - Landmark Select	$	1.066785	$	1.144369	$	1.235071	$	—
M&E - 2.30% - Huntington Landmark	$	1.066785	$	1.144369	$	1.235071	$	—
M&E - 2.30% - Landmark ML	$	1.066785	$	1.144369	$	1.235071	$	—
M&E - 2.35% - Freedom	$	1.066205	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	1.065040	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	1.065040	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	1.065040	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	1.065040	$	—	$	—	$	—

See accompanying notes.

100

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Invesco V.I. Capital Appreciation Subaccount		AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount
Assets
Investment in securities:
Number of shares - Initial		302,944.734		2,419,295.404		862,658.861		1,607,798.702
Cost	$	6,983,639	$	51,472,065	$	20,327,915	$	16,222,736
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	6,943,493	$	41,152,215	$	23,360,802	$	18,296,749
Receivable for units sold		14		—		—		5
Total assets		6,943,507		41,152,215		23,360,802		18,296,754
Liabilities
Payable for units redeemed		—		168		350		—
	$	6,943,507	$	41,152,047	$	23,360,452	$	18,296,754
Net Assets:
Deferred annuity contracts terminable by owners	$	6,943,507	$	41,152,047	$	23,360,452	$	18,296,754
Total net assets	$	6,943,507	$	41,152,047	$	23,360,452	$	18,296,754

See accompanying notes.

101

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Invesco V.I. Capital Appreciation Subaccount		AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		210,939		3,684,680		1,323,527		—
M&E - 1.25% - Landmark ML		11,035		747,775		430,732		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		2,280,823		5,362,385		3,037,012		7,118,347
M&E - 1.30% - Suntrust Landmark		12,008		—		—		—
M&E - 1.30% - Landmark Select		28,915		—		21,776		—
M&E - 1.30% - Huntington Landmark		100,572		37,603		11,374		161,581
M&E - 1.30% - Landmark ML		41,567		332,247		670,003		147,274
M&E - 1.40% - Landmark		173,106		915,535		522,188		—
M&E - 1.40% - Landmark ML		41,261		381,109		279,175		—
M&E - 1.40% - Freedom		19		351,109		5,343		—
M&E - 1.50% - Landmark		678,674		11,534,384		6,074,000		3,176,084
M&E - 1.50% - Suntrust Landmark		1,108		5,992		—		—
M&E - 1.50% - Landmark Select		34,231		35,418		—		—
M&E - 1.50% - Huntington Landmark		32,626		57,778		97,670		1,339
M&E - 1.50% - Landmark ML		29,719		4,174,227		3,103,267		15,912
M&E - 1.50% - Freedom		15,003		144,749		219,410		—
M&E - 1.55% - Landmark		2,612,731		11,289,230		8,280,002		—
M&E - 1.55% - Landmark ML		468,853		1,861,372		2,295,333		—
M&E - 1.65% - Freedom		76,442		367,113		125,698		—
M&E - 1.70% - Freedom		98,889		526,634		248,373		930,866
M&E - 1.80% - Landmark		11,506		20,591		29,363		537,503
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		345		6,080
M&E - 1.80% - Landmark ML		—		—		—		16,389

See accompanying notes.

102

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Invesco V.I. Capital Appreciation Subaccount		AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		3,699		10,292		1,726		—
M&E - 1.90% - Freedom		25,636		7,354		3,966		5,379
M&E - 1.95% - Landmark		—		—		—		1,074,225
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		26,744
M&E - 2.00% - Landmark		16,653		34,694		55,482		262,294
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		17,174		—
M&E - 2.00% - Landmark ML		—		—		—		30,057
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		237,620		195,379		—
M&E - 2.20% - Freedom		—		137,133		132,801		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		41,033
M&E - 2.45% - Landmark		—		—		—		49,674
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

103

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Invesco V.I. Capital Appreciation Subaccount		AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.014197	$	0.978382	$	0.831363	$	—
M&E - 1.25% - Landmark ML	$	1.014197	$	0.978382	$	0.831363	$	—
M&E - 1.25% - Freedom	$	0.802509	$	0.772719	$	0.948778	$	—
M&E - 1.30% - Landmark	$	1.009870	$	1.079926	$	1.109325	$	1.350083
M&E - 1.30% - Suntrust Landmark	$	1.009870	$	1.079926	$	1.109325	$	—
M&E - 1.30% - Landmark Select	$	1.009870	$	1.079926	$	1.109325	$	1.350083
M&E - 1.30% - Huntington Landmark	$	0.797293	$	0.787677	$	0.935397	$	1.350083
M&E - 1.30% - Landmark ML	$	1.009870	$	1.079926	$	1.109325	$	1.350083
M&E - 1.40% - Landmark	$	1.001251	$	0.964479	$	0.819539	$	—
M&E - 1.40% - Landmark ML	$	1.001251	$	0.964479	$	0.819539	$	—
M&E - 1.40% - Freedom	$	1.007936	$	1.022195	$	1.167877	$	—
M&E - 1.50% - Landmark	$	0.992710	$	0.955329	$	0.811761	$	1.344388
M&E - 1.50% - Suntrust Landmark	$	0.992710	$	0.955329	$	0.811761	$	—
M&E - 1.50% - Landmark Select	$	0.992710	$	0.955329	$	0.811761	$	1.344388
M&E - 1.50% - Huntington Landmark	$	0.792090	$	0.782579	$	0.929309	$	1.344388
M&E - 1.50% - Landmark ML	$	0.992710	$	0.955329	$	0.811761	$	1.344388
M&E - 1.50% - Freedom	$	0.992710	$	0.955329	$	0.811761	$	—
M&E - 1.55% - Landmark	$	0.988477	$	0.950792	$	0.807891	$	—
M&E - 1.55% - Landmark ML	$	0.988477	$	0.950792	$	0.807891	$	—
M&E - 1.65% - Freedom	$	0.980081	$	0.941786	$	0.800240	$	1.340179
M&E - 1.70% - Freedom	$	0.821152	$	0.872462	$	0.952317	$	1.338773
M&E - 1.80% - Landmark	$	0.967627	$	1.034740	$	1.062913	$	1.335965
M&E - 1.80% - Suntrust Landmark	$	0.967627	$	1.034740	$	1.062913	$	—
M&E - 1.80% - Landmark Select	$	0.967627	$	1.034740	$	1.062913	$	1.335965
M&E - 1.80% - Huntington Landmark	$	0.784388	$	0.774960	$	0.920274	$	1.335965
M&E - 1.80% - Landmark ML	$	0.967627	$	1.034740	$	1.062913	$	1.335965

See accompanying notes.

104

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Invesco V.I. Capital Appreciation Subaccount		AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	1.173575	$	1.239677	$	1.283995	$	1.334562
M&E - 1.90% - Freedom	$	0.813650	$	0.864477	$	0.943619	$	1.333173
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	1.331774
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	1.331774
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	1.331774
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	1.331774
M&E - 2.00% - Landmark	$	1.160417	$	1.225782	$	1.269578	$	1.330376
M&E - 2.00% - Suntrust Landmark	$	1.160417	$	1.225782	$	1.269578	$	—
M&E - 2.00% - Landmark Select	$	1.160417	$	1.225782	$	1.269578	$	1.330376
M&E - 2.00% - Huntington Landmark	$	0.779300	$	0.769920	$	0.914308	$	1.330376
M&E - 2.00% - Landmark ML	$	1.160417	$	1.225782	$	1.269578	$	1.330376
M&E - 2.05% - Landmark	$	0.947206	$	1.012949	$	1.040564	$	—
M&E - 2.05% - Landmark ML	$	0.947206	$	1.012949	$	1.040564	$	—
M&E - 2.15% - Freedom	$	1.147426	$	1.212010	$	1.255344	$	1.326218
M&E - 2.20% - Freedom	$	0.802528	$	0.852669	$	0.930742	$	1.324830
M&E - 2.30% - Landmark	$	1.134552	$	1.198425	$	1.241295	$	1.322043
M&E - 2.30% - Suntrust Landmark	$	1.134552	$	1.198425	$	1.241295	$	—
M&E - 2.30% - Landmark Select	$	1.134552	$	1.198425	$	1.241295	$	1.322043
M&E - 2.30% - Huntington Landmark	$	0.771773	$	0.762481	$	0.905457	$	1.322043
M&E - 2.30% - Landmark ML	$	1.134552	$	1.198425	$	1.241295	$	1.322043
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	1.320670
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	1.317934
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	1.317934
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	1.317934
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	1.317934

See accompanying notes.

105

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Invesco V.I. Capital Appreciation Subaccount		AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

106

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Invesco V.I. Capital Appreciation Subaccount		AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

107

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Invesco V.I. Capital Appreciation Subaccount		AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

108

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Invesco V.I. Capital Appreciation Subaccount		AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

109

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Janus Aspen-Enterprise Subaccount		Janus Aspen Perkins- Mid Cap Value Subaccount		Janus Aspen- Worldwide Subaccount		MFS® New  Discovery Subaccount
Assets
Investment in securities:
Number of shares - Initial		536,508.647		203,822.378		1,436,883.309		2,452,761.654
Cost	$	15,059,791	$	2,907,197	$	40,837,081	$	32,294,640
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	20,135,170	$	3,208,164	$	42,819,123	$	43,511,992
Receivable for units sold		—		—		12		—
Total assets		20,135,170		3,208,164		42,819,135		43,511,992
Liabilities
Payable for units redeemed		32		1		—		31
	$	20,135,138	$	3,208,163	$	42,819,135	$	43,511,961
Net Assets:
Deferred annuity contracts terminable by owners	$	20,135,138	$	3,208,163	$	42,819,135	$	43,511,961
Total net assets	$	20,135,138	$	3,208,163	$	42,819,135	$	43,511,961

See accompanying notes.

110

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Janus Aspen-Enterprise Subaccount		Janus Aspen Perkins- Mid Cap Value Subaccount		Janus Aspen- Worldwide Subaccount		MFS® New  Discovery Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		1,248,942		359,445		2,462,189		516,185
M&E - 1.25% - Landmark ML		127,399		17,253		569,955		93,046
M&E - 1.25% - Freedom		5,093		1,885		58,537		12,337
M&E - 1.30% - Landmark		2,081,986		—		7,528,934		7,774,549
M&E - 1.30% - Suntrust Landmark		18,748		—		21,350		3,451
M&E - 1.30% - Landmark Select		18,942		—		66,057		14,122
M&E - 1.30% - Huntington Landmark		14,964		—		59,799		24,995
M&E - 1.30% - Landmark ML		48,025		—		307,909		275,856
M&E - 1.40% - Landmark		1,771,295		425,384		1,289,071		652,117
M&E - 1.40% - Landmark ML		164,470		102,120		530,380		191,672
M&E - 1.40% - Freedom		273,366		9,115		587,286		160,538
M&E - 1.50% - Landmark		2,865,041		449,469		9,051,516		5,340,390
M&E - 1.50% - Suntrust Landmark		—		—		—		12,274
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		1,148		—		21,961		39,033
M&E - 1.50% - Landmark ML		562,925		255,888		1,644,547		244,969
M&E - 1.50% - Freedom		68,578		7,316		221,449		14,292
M&E - 1.55% - Landmark		9,258,898		128,924		20,314,628		10,361,433
M&E - 1.55% - Landmark ML		1,463,003		267,858		3,576,751		1,278,670
M&E - 1.65% - Freedom		511,531		89,891		4,214,616		287,537
M&E - 1.70% - Freedom		115,701		—		675,273		797,686
M&E - 1.80% - Landmark		57,980		—		436,311		120,153
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		1,335
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

111

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Janus Aspen-Enterprise Subaccount		Janus Aspen Perkins- Mid Cap Value Subaccount		Janus Aspen- Worldwide Subaccount		MFS® New  Discovery Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		3,067		—		12,730		15,729
M&E - 1.90% - Freedom		27,831		—		122,479		55,537
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		10,855		—		41,652		66,644
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		76,975		—		184,972		134,578
M&E - 2.20% - Freedom		48,865		—		23,468		5,744
M&E - 2.30% - Landmark		—		—		—		2,814
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

112

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Janus Aspen-Enterprise Subaccount		Janus Aspen Perkins- Mid Cap Value Subaccount		Janus Aspen- Worldwide Subaccount		MFS® New  Discovery Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.264171	$	1.549208	$	0.857507	$	1.559306
M&E - 1.25% - Landmark ML	$	1.264171	$	1.549208	$	0.857507	$	1.559306
M&E - 1.25% - Freedom	$	1.071240	$	1.052671	$	0.843596	$	1.219205
M&E - 1.30% - Landmark	$	1.836327	$	—	$	1.086242	$	1.552619
M&E - 1.30% - Suntrust Landmark	$	1.836327	$	—	$	1.086242	$	1.552619
M&E - 1.30% - Landmark Select	$	1.836327	$	—	$	1.086242	$	1.552619
M&E - 1.30% - Huntington Landmark	$	1.060494	$	—	$	0.847169	$	1.257234
M&E - 1.30% - Landmark ML	$	1.836327	$	—	$	1.086242	$	1.552619
M&E - 1.40% - Landmark	$	0.650168	$	1.521387	$	0.684810	$	1.539371
M&E - 1.40% - Landmark ML	$	0.650168	$	1.521387	$	0.616725	$	1.539371
M&E - 1.40% - Freedom	$	1.661776	$	1.544589	$	1.127762	$	1.556961
M&E - 1.50% - Landmark	$	1.234365	$	1.512686	$	0.837304	$	1.526253
M&E - 1.50% - Suntrust Landmark	$	1.234365	$	—	$	0.837304	$	1.526253
M&E - 1.50% - Landmark Select	$	1.234365	$	—	$	0.837304	$	1.526253
M&E - 1.50% - Huntington Landmark	$	1.053576	$	—	$	0.841629	$	1.249029
M&E - 1.50% - Landmark ML	$	1.234365	$	1.512686	$	0.837304	$	1.526253
M&E - 1.50% - Freedom	$	0.705305	$	1.506124	$	0.677922	$	1.526253
M&E - 1.55% - Landmark	$	0.701749	$	1.498603	$	0.674525	$	1.519723
M&E - 1.55% - Landmark ML	$	0.701749	$	1.498603	$	0.674525	$	1.519723
M&E - 1.65% - Freedom	$	0.694709	$	1.483526	$	0.667727	$	1.506858
M&E - 1.70% - Freedom	$	1.214378	$	—	$	0.991483	$	1.289202
M&E - 1.80% - Landmark	$	1.759544	$	—	$	1.040797	$	1.487677
M&E - 1.80% - Suntrust Landmark	$	1.759544	$	—	$	1.040797	$	1.487677
M&E - 1.80% - Landmark Select	$	1.759544	$	—	$	1.040797	$	1.487677
M&E - 1.80% - Huntington Landmark	$	1.043357	$	—	$	0.833448	$	1.236867
M&E - 1.80% - Landmark ML	$	1.759544	$	—	$	1.040797	$	1.487677

See accompanying notes.

113

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Janus Aspen-Enterprise Subaccount		Janus Aspen Perkins- Mid Cap Value Subaccount		Janus Aspen- Worldwide Subaccount		MFS® New  Discovery Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	2.088918	$	—	$	1.356551	$	1.927735
M&E - 1.90% - Freedom	$	1.203252	$	—	$	0.982399	$	1.277416
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	2.065498	$	—	$	1.341342	$	1.906034
M&E - 2.00% - Suntrust Landmark	$	2.065498	$	—	$	1.341342	$	1.906034
M&E - 2.00% - Landmark Select	$	2.065498	$	—	$	1.341342	$	1.906034
M&E - 2.00% - Huntington Landmark	$	1.036588	$	—	$	0.828040	$	1.228863
M&E - 2.00% - Landmark ML	$	2.065498	$	—	$	1.341342	$	1.906034
M&E - 2.05% - Landmark	$	1.722514	$	—	$	1.018901	$	1.456348
M&E - 2.05% - Landmark ML	$	1.722514	$	—	$	1.018901	$	1.456348
M&E - 2.15% - Freedom	$	2.042316	$	—	$	1.326286	$	1.884653
M&E - 2.20% - Freedom	$	1.186832	$	—	$	0.968994	$	1.259972
M&E - 2.30% - Landmark	$	2.019455	$	—	$	1.311428	$	1.863598
M&E - 2.30% - Suntrust Landmark	$	2.019455	$	—	$	1.311428	$	1.863598
M&E - 2.30% - Landmark Select	$	2.019455	$	—	$	1.311428	$	1.863598
M&E - 2.30% - Huntington Landmark	$	1.026545	$	—	$	0.820034	$	1.216950
M&E - 2.30% - Landmark ML	$	2.019455	$	—	$	1.311428	$	1.863598
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

114

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Janus Aspen-Enterprise Subaccount		Janus Aspen Perkins- Mid Cap Value Subaccount		Janus Aspen- Worldwide Subaccount		MFS® New  Discovery Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

115

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Janus Aspen-Enterprise Subaccount		Janus Aspen Perkins- Mid Cap Value Subaccount		Janus Aspen- Worldwide Subaccount		MFS® New  Discovery Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

116

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Janus Aspen-Enterprise Subaccount		Janus Aspen Perkins- Mid Cap Value Subaccount		Janus Aspen- Worldwide Subaccount		MFS® New  Discovery Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

117

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Janus Aspen-Enterprise Subaccount		Janus Aspen Perkins- Mid Cap Value Subaccount		Janus Aspen- Worldwide Subaccount		MFS® New  Discovery Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

118

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	MFS® Total  Return Subaccount		Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity- Income Subaccount		Fidelity VIP Growth Subaccount
Assets
Investment in securities:
Number of shares - Initial		3,469,339.045		8,378,928.970		2,727,509.779		895,653.442
Cost	$	65,301,012	$	223,657,909	$	61,747,564	$	32,802,685
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	64,113,386	$	196,821,042	$	51,140,808	$	32,888,394
Receivable for units sold		—		—		—		—
Total assets		64,113,386		196,821,042		51,140,808		32,888,394
Liabilities
Payable for units redeemed		437		564		919		292
	$	64,112,949	$	196,820,478	$	51,139,889	$	32,888,102
Net Assets:
Deferred annuity contracts terminable by owners	$	64,112,949	$	196,820,478	$	51,139,889	$	32,888,102
Total net assets	$	64,112,949	$	196,820,478	$	51,139,889	$	32,888,102

See accompanying notes.

119

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	MFS® Total  Return Subaccount		Fidelity VIP Contrafund® Subaccount		Fidelity VIP  Equity- Income Subaccount		Fidelity VIP Growth Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		1,112,260		5,237,823		2,076,464		2,248,243
M&E - 1.25% - Landmark ML		116,873		865,328		134,075		94,945
M&E - 1.25% - Freedom		53,896		343,173		27,257		87,263
M&E - 1.30% - Landmark		10,255,568		26,378,882		8,012,432		6,764,425
M&E - 1.30% - Suntrust Landmark		75,581		266,402		147,924		27,745
M&E - 1.30% - Landmark Select		90,835		398,091		188,935		206,755
M&E - 1.30% - Huntington Landmark		289,059		643,419		285,616		107,590
M&E - 1.30% - Landmark ML		492,566		1,386,820		375,440		420,667
M&E - 1.40% - Landmark		1,349,909		5,496,754		1,419,264		880,427
M&E - 1.40% - Landmark ML		361,857		2,145,436		347,153		376,324
M&E - 1.40% - Freedom		822,855		1,971,713		602,279		295,671
M&E - 1.50% - Landmark		5,682,649		19,294,181		8,581,428		6,216,256
M&E - 1.50% - Suntrust Landmark		23,114		50,168		99,654		239,417
M&E - 1.50% - Landmark Select		17,051		8,096		22,218		29,408
M&E - 1.50% - Huntington Landmark		125,387		377,691		118,382		3,314
M&E - 1.50% - Landmark ML		600,797		3,000,649		1,739,989		1,069,290
M&E - 1.50% - Freedom		314,053		1,050,518		369,132		395,358
M&E - 1.55% - Landmark		22,464,953		55,584,926		15,812,096		12,688,297
M&E - 1.55% - Landmark ML		1,969,853		6,211,481		2,972,119		2,010,067
M&E - 1.65% - Freedom		3,112,932		6,160,593		608,347		306,605
M&E - 1.70% - Freedom		1,089,499		2,581,611		406,636		305,422
M&E - 1.80% - Landmark		541,902		633,355		541,557		253,696
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		3,298
M&E - 1.80% - Huntington Landmark		8,936		9,046		477		—
M&E - 1.80% - Landmark ML		—		47,798		—		—

See accompanying notes.

120

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	MFS® Total  Return Subaccount		Fidelity VIP Contrafund® Subaccount		Fidelity VIP  Equity- Income Subaccount		Fidelity VIP Growth Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		119,350		128,117		73,703		4,061
M&E - 1.90% - Freedom		89,738		362,724		178,233		584,536
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		79,234		129,327		12,435		40,758
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		39,149		42,035		19,442
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		128,731		544,119		83,870		94,488
M&E - 2.20% - Freedom		117,471		369,402		32,175		105,904
M&E - 2.30% - Landmark		—		3,623		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

121

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	MFS® Total  Return Subaccount		Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity- Income Subaccount		Fidelity VIP Growth Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.278746	$	1.564362	$	1.099640	$	0.880152
M&E - 1.25% - Landmark ML	$	1.278746	$	1.564362	$	1.099640	$	0.880152
M&E - 1.25% - Freedom	$	0.948559	$	0.967811	$	0.778011	$	0.955719
M&E - 1.30% - Landmark	$	1.273275	$	1.591765	$	1.169536	$	1.091941
M&E - 1.30% - Suntrust Landmark	$	1.273275	$	1.591765	$	1.169536	$	1.091941
M&E - 1.30% - Landmark Select	$	1.273275	$	1.591765	$	1.169536	$	1.091941
M&E - 1.30% - Huntington Landmark	$	0.972846	$	0.934416	$	0.803373	$	0.875390
M&E - 1.30% - Landmark ML	$	1.273275	$	1.591765	$	1.169536	$	1.091941
M&E - 1.40% - Landmark	$	1.262412	$	1.297713	$	1.172556	$	0.867643
M&E - 1.40% - Landmark ML	$	1.262412	$	1.297713	$	1.172556	$	0.867643
M&E - 1.40% - Freedom	$	1.191485	$	1.403845	$	1.094438	$	1.127961
M&E - 1.50% - Landmark	$	1.251683	$	1.527482	$	1.073705	$	0.859417
M&E - 1.50% - Suntrust Landmark	$	1.251683	$	1.527482	$	1.073705	$	0.859417
M&E - 1.50% - Landmark Select	$	1.251683	$	1.527482	$	1.073705	$	0.859417
M&E - 1.50% - Huntington Landmark	$	0.966520	$	0.928330	$	0.798147	$	0.869699
M&E - 1.50% - Landmark ML	$	1.251683	$	1.527482	$	1.073705	$	0.859417
M&E - 1.50% - Freedom	$	1.251683	$	1.284131	$	1.160284	$	0.859417
M&E - 1.55% - Landmark	$	1.246334	$	1.277401	$	1.154180	$	0.855314
M&E - 1.55% - Landmark ML	$	1.246334	$	1.277401	$	1.154180	$	0.855314
M&E - 1.65% - Freedom	$	1.235752	$	1.264042	$	1.142130	$	0.847189
M&E - 1.70% - Freedom	$	1.041956	$	1.022302	$	0.890139	$	0.999116
M&E - 1.80% - Landmark	$	1.220033	$	1.525190	$	1.120632	$	1.046301
M&E - 1.80% - Suntrust Landmark	$	1.220033	$	1.525190	$	1.120632	$	1.046301
M&E - 1.80% - Landmark Select	$	1.220033	$	1.525190	$	1.120632	$	1.046301
M&E - 1.80% - Huntington Landmark	$	0.957124	$	0.919292	$	0.790374	$	0.861246
M&E - 1.80% - Landmark ML	$	1.220033	$	1.525190	$	1.120632	$	1.046301

See accompanying notes.

122

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	MFS® Total  Return Subaccount		Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity- Income Subaccount		Fidelity VIP Growth Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	1.307097	$	1.733237	$	1.343865	$	1.339906
M&E - 1.90% - Freedom	$	1.032426	$	1.012949	$	0.881994	$	0.989998
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.292390	$	1.713753	$	1.328759	$	1.324847
M&E - 2.00% - Suntrust Landmark	$	1.292390	$	1.713753	$	1.328759	$	1.324847
M&E - 2.00% - Landmark Select	$	1.292390	$	1.713753	$	1.328759	$	1.324847
M&E - 2.00% - Huntington Landmark	$	0.950909	$	0.913324	$	0.785253	$	0.855650
M&E - 2.00% - Landmark ML	$	1.292390	$	1.713753	$	1.328759	$	1.324847
M&E - 2.05% - Landmark	$	1.194347	$	1.493081	$	1.097058	$	1.024276
M&E - 2.05% - Landmark ML	$	1.194347	$	1.493081	$	1.097058	$	1.024276
M&E - 2.15% - Freedom	$	1.277917	$	1.694530	$	1.313868	$	1.309996
M&E - 2.20% - Freedom	$	1.018373	$	0.999136	$	0.869942	$	0.976488
M&E - 2.30% - Landmark	$	1.263576	$	1.675557	$	1.299135	$	1.295339
M&E - 2.30% - Suntrust Landmark	$	1.263576	$	1.675557	$	1.299135	$	1.295339
M&E - 2.30% - Landmark Select	$	1.263576	$	1.675557	$	1.299135	$	1.295339
M&E - 2.30% - Huntington Landmark	$	0.941710	$	0.904497	$	0.777656	$	0.847369
M&E - 2.30% - Landmark ML	$	1.263576	$	1.675557	$	1.299135	$	1.295339
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

123

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	MFS® Total  Return Subaccount		Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity- Income Subaccount		Fidelity VIP Growth Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

124

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	MFS® Total  Return Subaccount		Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity- Income Subaccount		Fidelity VIP Growth Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

125

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	MFS® Total  Return Subaccount		Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity- Income Subaccount		Fidelity VIP Growth Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

126

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

			Fidelity VIP		Fidelity VIP Equity-
	MFS® Total Return		Contrafund®		Income		Fidelity VIP Growth
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

127

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Fidelity VIP Growth				Fidelity VIP Value
	Opportunities		Fidelity VIP Mid Cap		Strategies		Fidelity VIP Balanced
	Subaccount		Subaccount		Subaccount		Subaccount
Assets
Investment in securities:
Number of shares - Initial		112,007.924		7,163,371.358		6,288,933.653		2,020,764.785
Cost	$	1,466,632	$	213,871,997	$	60,774,638	$	24,634,848
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	1,991,501	$	230,159,122	$	61,568,660	$	30,897,494
Receivable for units sold		5		—		4		21
Total assets		1,991,506		230,159,122		61,568,664		30,897,515
Liabilities
Payable for units redeemed		—		585		—		—
	$	1,991,506	$	230,158,537	$	61,568,664	$	30,897,515
Net Assets:
Deferred annuity contracts terminable by owners	$	1,991,506	$	230,158,537	$	61,568,664	$	30,897,515
Total net assets	$	1,991,506	$	230,158,537	$	61,568,664	$	30,897,515

See accompanying notes.

128

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Fidelity VIP Growth				Fidelity VIP Value
	Opportunities		Fidelity VIP Mid Cap		Strategies		Fidelity VIP Balanced
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		247,593		4,975,286		1,600,220		—
M&E - 1.25% - Landmark ML		76,994		505,851		98,910		—
M&E - 1.25% - Freedom		140		239,744		154,722		—
M&E - 1.30% - Landmark		—		17,817,411		10,580,583		16,289,268
M&E - 1.30% - Suntrust Landmark		—		223,705		126,270		—
M&E - 1.30% - Landmark Select		—		167,143		12,035		94,721
M&E - 1.30% - Huntington Landmark		—		546,119		9,115		459,036
M&E - 1.30% - Landmark ML		—		607,219		393,434		1,943,332
M&E - 1.40% - Landmark		27,376		2,977,929		873,877		—
M&E - 1.40% - Landmark ML		92,859		1,849,968		324,757		—
M&E - 1.40% - Freedom		37,181		2,427,383		696,521		—
M&E - 1.50% - Landmark		1,160,527		18,153,408		5,163,786		4,652,314
M&E - 1.50% - Suntrust Landmark		—		63,799		10,169		—
M&E -1.50% - Landmark Select		—		—		6,288		—
M&E - 1.50% - Huntington Landmark		—		76,169		29,680		504,555
M&E - 1.50% - Landmark ML		178,272		3,143,432		490,103		217,227
M&E - 1.50% - Freedom		6,890		339,023		249,868		—
M&E - 1.55% - Landmark		36,501		36,234,536		17,147,265		—
M&E - 1.55% - Landmark ML		238,574		4,654,611		2,012,944		—
M&E - 1.65% - Freedom		23,686		2,623,368		1,614,239		—
M&E - 1.70% - Freedom		—		1,390,051		455,355		1,230,865
M&E - 1.80% - Landmark		—		630,656		118,936		1,640,445
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		54,002		—		67,581
M&E - 1.80% - Landmark ML		—		—		—		190,745

See accompanying notes.

129

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Fidelity VIP Growth				Fidelity VIP Value
	Opportunities		Fidelity VIP Mid Cap		Strategies		Fidelity VIP Balanced
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		70,901		127,358		—
M&E - 1.90% - Freedom		—		214,978		166,473		131,950
M&E - 1.95% - Landmark		—		—		—		801,730
M&E - 1.95% - Landmark Select		—		—		—		50,386
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		330,164
M&E - 2.00% - Landmark		—		37,550		38,941		330,383
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		37,663		—		54,518
M&E - 2.00% - Landmark ML		—		—		—		84,440
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		506,793		300,849		—
M&E - 2.20% - Freedom		—		307,196		37,864		—
M&E - 2.30% - Landmark		—		—		—		5,865
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		205,267
M&E - 2.45% - Landmark		—		—		—		23,906
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

130

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Fidelity VIP Growth				Fidelity VIP Value
	Opportunities		Fidelity VIP Mid Cap		Strategies		Fidelity VIP Balanced
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	0.996764	$	2.369263	$	1.472847	$	—
M&E - 1.25% - Landmark ML	$	0.996764	$	2.369263	$	1.472847	$	1.059328
M&E - 1.25% - Freedom	$	0.871262	$	1.112453	$	0.866127	$	—
M&E - 1.30% - Landmark	$	—	$	2.214293	$	1.466580	$	1.057928
M&E - 1.30% - Suntrust Landmark	$	—	$	2.214293	$	1.466580	$	1.057928
M&E - 1.30% - Landmark Select	$	—	$	2.214293	$	1.466580	$	1.057928
M&E - 1.30% - Huntington Landmark	$	—	$	1.082144	$	0.918254	$	1.057928
M&E - 1.30% - Landmark ML	$	—	$	2.214293	$	1.466580	$	1.057928
M&E - 1.40% - Landmark	$	0.768942	$	2.409019	$	1.454089	$	—
M&E - 1.40% - Landmark ML	$	0.768942	$	2.409019	$	1.454089	$	1.055143
M&E - 1.40% - Freedom	$	1.108311	$	1.834514	$	1.240539	$	—
M&E - 1.50% - Landmark	$	0.973264	$	2.313438	$	1.441694	$	1.052371
M&E - 1.50% - Suntrust Landmark	$	—	$	2.313438	$	1.441694	$	1.052371
M&E - 1.50% - Landmark Select	$	—	$	2.313438	$	1.441694	$	1.052371
M&E - 1.50% - Huntington Landmark	$	—	$	1.075104	$	0.912262	$	1.052371
M&E - 1.50% - Landmark ML	$	0.973264	$	2.313438	$	1.441694	$	1.052371
M&E - 1.50% - Freedom	$	0.760866	$	2.383749	$	1.441694	$	—
M&E - 1.55% - Landmark	$	0.756872	$	2.371228	$	1.435540	$	—
M&E - 1.55% - Landmark ML	$	0.756872	$	2.371228	$	1.435540	$	1.050978
M&E - 1.65% - Freedom	$	0.749024	$	2.346471	$	1.423359	$	1.048229
M&E - 1.70% - Freedom	$	—	$	1.148775	$	1.010795	$	1.046837
M&E - 1.80% - Landmark	$	—	$	2.121670	$	1.405243	$	1.044104
M&E - 1.80% - Suntrust Landmark	$	—	$	2.121670	$	1.405243	$	1.044104
M&E - 1.80% - Landmark Select	$	—	$	2.121670	$	1.405243	$	1.044104
M&E - 1.80% - Huntington Landmark	$	—	$	1.064643	$	0.903413	$	1.044104
M&E - 1.80% - Landmark ML	$	—	$	2.121670	$	1.405243	$	1.044104

See accompanying notes.

131

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Fidelity VIP Growth Opportunities Subaccount		Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	2.529386	$	1.789130	$	1.042736
M&E - 1.90% - Freedom	$	—	$	1.138259	$	1.001557	$	1.041380
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	1.040017
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	1.040017
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	1.040017
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	1.040017
M&E - 2.00% - Landmark	$	—	$	2.501006	$	1.769039	$	1.038655
M&E - 2.00% - Suntrust Landmark	$	—	$	2.501006	$	1.769039	$	1.038655
M&E - 2.00% - Landmark Select	$	—	$	2.501006	$	1.769039	$	1.038655
M&E - 2.00% - Huntington Landmark	$	—	$	1.057738	$	0.897540	$	1.038655
M&E - 2.00% - Landmark ML	$	—	$	2.501006	$	1.769039	$	1.038655
M&E - 2.05% - Landmark	$	—	$	2.077047	$	1.375631	$	—
M&E - 2.05% - Landmark ML	$	—	$	2.077047	$	1.375631	$	1.037290
M&E - 2.15% - Freedom	$	—	$	2.472967	$	1.749201	$	1.034575
M&E - 2.20% - Freedom	$	—	$	1.122728	$	0.987886	$	1.033236
M&E - 2.30% - Landmark	$	—	$	2.445238	$	1.729625	$	1.030532
M&E - 2.30% - Suntrust Landmark	$	—	$	2.445238	$	1.729625	$	1.030532
M&E - 2.30% - Landmark Select	$	—	$	2.445238	$	1.729625	$	1.030532
M&E - 2.30% - Huntington Landmark	$	—	$	1.047517	$	0.888860	$	1.030532
M&E - 2.30% - Landmark ML	$	—	$	2.445238	$	1.729625	$	1.030532
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	1.029180
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	1.026512
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	1.026512
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	1.026512
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	1.026512

See accompanying notes.

132

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Fidelity VIP Growth Opportunities Subaccount		Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

133

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Fidelity VIP Growth Opportunities Subaccount		Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

134

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Fidelity VIP Growth Opportunities Subaccount		Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

135

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Fidelity VIP Growth Opportunities Subaccount		Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

136

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Franklin Income Securities Subaccount		Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton Founding Funds Allocation Subaccount
Assets
Investment in securities:
Number of shares - Initial		3,435,332.627		1,096,429.316		2,834,009.472		6,875,275.240
Cost	$	46,298,147	$	15,470,200	$	36,323,126	$	47,193,217
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	50,911,630	$	17,488,048	$	40,497,995	$	53,008,372
Receivable for units sold		3		8		—		—
Total assets		50,911,633		17,488,056		40,497,995		53,008,372
Liabilities
Payable for units redeemed		—		—		39		36
	$	50,911,633	$	17,488,056	$	40,497,956	$	53,008,336
Net Assets:
Deferred annuity contracts terminable by owners	$	50,911,633	$	17,488,056	$	40,497,956	$	53,008,336
Total net assets	$	50,911,633	$	17,488,056	$	40,497,956	$	53,008,336

See accompanying notes.

137

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Franklin Income Securities Subaccount		Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton Founding Funds Allocation Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		877,268		831,978		1,277,325		—
M&E - 1.25% - Landmark ML		22,136		11,902		197,081		—
M&E - 1.25% - Freedom		11,327		138,452		3,864		—
M&E - 1.30% - Landmark		15,823,213		5,954,748		10,464,732		21,363,738
M&E - 1.30% - Suntrust Landmark		8,155		21,262		—		—
M&E - 1.30% - Landmark Select		105,387		—		—		51,060
M&E - 1.30% - Huntington Landmark		302,260		122,341		102,207		1,313,978
M&E - 1.30% - Landmark ML		877,278		219,705		262,335		921,236
M&E - 1.40% - Landmark		866,860		1,135,684		1,643,068		—
M&E - 1.40% - Landmark ML		522,433		115,680		667,859		—
M&E - 1.40% - Freedom		955,941		367,117		734,707		—
M&E - 1.50% - Landmark		7,750,959		4,402,885		7,041,404		8,192,991
M&E - 1.50% - Suntrust Landmark		—		—		7,910		—
M&E - 1.50% - Landmark Select		68,880		—		—		—
M&E - 1.50% - Huntington Landmark		189,762		98,325		222,756		377,392
M&E - 1.50% - Landmark ML		890,064		99,422		714,375		214,991
M&E - 1.50% - Freedom		292,279		111,708		105,409		—
M&E - 1.55% - Landmark		13,168,895		5,798,388		16,888,674		—
M&E - 1.55% - Landmark ML		1,546,753		275,208		1,179,807		—
M&E - 1.65% - Freedom		1,377,356		165,536		384,697		5,707
M&E - 1.70% - Freedom		2,747,692		1,104,945		1,280,796		1,832,730
M&E - 1.80% - Landmark		1,832,571		354,796		280,141		1,510,908
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		1,085		20,452		171		11,608
M&E - 1.80% - Landmark ML		11,522		—		—		58,889

See accompanying notes.

138

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Franklin Income Securities Subaccount		Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton Founding Funds Allocation Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		224,147		—		176,017		353
M&E - 1.90% - Freedom		100,543		34,947		198,840		339,757
M&E - 1.95% - Landmark		—		—		—		1,675,340
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		26,201
M&E - 2.00% - Landmark		296,665		72,672		130,600		363,672
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		33,233		20,401		—		6,224
M&E - 2.00% - Landmark ML		—		—		—		54,728
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		63,441		—		184,431		—
M&E - 2.20% - Freedom		31,100		—		559,512		—
M&E - 2.30% - Landmark		12,935		—		3,605		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		103,889
M&E - 2.45% - Landmark		—		—		—		92,510
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

139

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Franklin Income Securities Subaccount		Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton Founding Funds Allocation Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.005682	$	0.819803	$	0.913165	$	—
M&E - 1.25% - Landmark ML	$	1.005682	$	0.819803	$	0.913165	$	—
M&E - 1.25% - Freedom	$	1.005682	$	0.819803	$	0.913165	$	—
M&E - 1.30% - Landmark	$	1.003872	$	0.818330	$	0.911517	$	1.380025
M&E - 1.30% - Suntrust Landmark	$	1.003872	$	0.818330	$	0.911517	$	—
M&E - 1.30% - Landmark Select	$	1.003872	$	0.818330	$	0.911517	$	1.380025
M&E - 1.30% - Huntington Landmark	$	1.035719	$	0.857321	$	0.934530	$	1.380025
M&E - 1.30% - Landmark ML	$	1.003872	$	0.818330	$	0.911517	$	1.380025
M&E - 1.40% - Landmark	$	1.000224	$	0.815369	$	0.908216	$	—
M&E - 1.40% - Landmark ML	$	1.000224	$	0.815369	$	0.908216	$	—
M&E - 1.40% - Freedom	$	1.000224	$	0.815369	$	0.909409	$	—
M&E - 1.50% - Landmark	$	0.996636	$	0.812424	$	0.904935	$	1.374241
M&E - 1.50% - Suntrust Landmark	$	0.996636	$	0.812424	$	0.904935	$	—
M&E - 1.50% - Landmark Select	$	0.996636	$	0.812424	$	0.904935	$	1.374241
M&E - 1.50% - Huntington Landmark	$	1.028966	$	0.851749	$	0.928438	$	1.374241
M&E - 1.50% - Landmark ML	$	0.996636	$	0.812424	$	0.904935	$	1.374241
M&E - 1.50% - Freedom	$	0.996636	$	0.812424	$	0.904935	$	—
M&E - 1.55% - Landmark	$	0.994830	$	0.810942	$	0.903305	$	—
M&E - 1.55% - Landmark ML	$	0.994830	$	0.810942	$	0.903305	$	—
M&E - 1.65% - Freedom	$	0.991236	$	0.808020	$	0.900033	$	1.369903
M&E - 1.70% - Freedom	$	0.989452	$	0.806583	$	0.898415	$	1.368458
M&E - 1.80% - Landmark	$	0.985890	$	0.803660	$	0.895164	$	1.365595
M&E - 1.80% - Suntrust Landmark	$	0.985890	$	0.803660	$	0.895164	$	—
M&E - 1.80% - Landmark Select	$	0.985890	$	0.803660	$	0.895164	$	1.365595
M&E - 1.80% - Huntington Landmark	$	1.018968	$	0.843440	$	0.919410	$	1.365595
M&E - 1.80% - Landmark ML	$	0.985890	$	0.803660	$	0.895164	$	1.365595

See accompanying notes.

140

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Franklin Income Securities Subaccount		Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton Founding Funds Allocation Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	0.984094	$	0.802198	$	0.893548	$	1.364151
M&E - 1.90% - Freedom	$	0.982343	$	0.800752	$	0.891954	$	1.362737
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	1.361314
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	1.361314
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	1.361314
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	1.361314
M&E - 2.00% - Landmark	$	0.978794	$	0.797876	$	0.888745	$	1.359873
M&E - 2.00% - Suntrust Landmark	$	0.978794	$	0.797876	$	0.888745	$	—
M&E - 2.00% - Landmark Select	$	0.978794	$	0.797876	$	0.888745	$	1.359873
M&E - 2.00% - Huntington Landmark	$	1.012379	$	0.837998	$	0.913465	$	1.359873
M&E - 2.00% - Landmark ML	$	0.978794	$	0.797876	$	0.888745	$	1.359873
M&E - 2.05% - Landmark	$	0.977035	$	0.796441	$	0.887144	$	—
M&E - 2.05% - Landmark ML	$	0.977035	$	0.796441	$	0.887144	$	—
M&E - 2.15% - Freedom	$	0.973557	$	0.793595	$	0.883971	$	1.355619
M&E - 2.20% - Freedom	$	0.971805	$	0.792160	$	0.882399	$	1.354217
M&E - 2.30% - Landmark	$	0.968305	$	0.789334	$	0.879228	$	1.351386
M&E - 2.30% - Suntrust Landmark	$	0.968305	$	0.789334	$	0.879228	$	—
M&E - 2.30% - Landmark Select	$	0.968305	$	0.789334	$	0.879228	$	1.351386
M&E - 2.30% - Huntington Landmark	$	1.002566	$	0.829895	$	0.904612	$	1.351386
M&E - 2.30% - Landmark ML	$	0.968305	$	0.789334	$	0.879228	$	1.351386
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	1.349963
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	1.347141
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	1.347141
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	1.347141
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	1.347141

See accompanying notes.

141

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Franklin Income Securities Subaccount		Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton Founding Funds Allocation Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

142

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Franklin Income Securities Subaccount		Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton Founding Funds Allocation Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

143

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Franklin Income Securities Subaccount		Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton Founding Funds Allocation Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

144

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Franklin Income Securities Subaccount		Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton Founding Funds Allocation Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

145

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – Asset Allocation Fund Subaccount		American Funds – Bond Fund Subaccount		American Funds – Growth Fund Subaccount		American Funds – Growth–Income Fund Subaccount
Assets
Investment in securities:
Number of shares - Initial		2,427,223.432		1,041,624.288		197,101.993		204,789.689
Cost	$	36,568,275	$	11,166,792	$	9,488,076	$	6,447,502
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	39,248,203	$	10,999,552	$	10,710,522	$	7,014,047
Receivable for units sold		—		—		—		—
Total assets		39,248,203		10,999,552		10,710,522		7,014,047
Liabilities
Payable for units redeemed		23		6		5		5
	$	39,248,180	$	10,999,546	$	10,710,517	$	7,014,042
Net Assets:
Deferred annuity contracts terminable by owners	$	39,248,180	$	10,999,546	$	10,710,517	$	7,014,042
Total net assets	$	39,248,180	$	10,999,546	$	10,710,517	$	7,014,042

See accompanying notes.

146

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – Asset Allocation Fund Subaccount		American Funds – Bond Fund Subaccount		American Funds – Growth Fund Subaccount		American Funds – Growth–Income Fund Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		17,641,226		5,935,882		5,623,638		3,671,939
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		176,192		—		—
M&E - 1.30% - Huntington Landmark		2,237,059		167,541		123,507		132,466
M&E - 1.30% - Landmark ML		3,296,561		430,837		13,156		24,722
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		5,881,037		1,758,795		2,225,606		1,691,025
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		7,330		—		—		—
M&E - 1.50% - Huntington Landmark		645,068		109,243		90,929		42,199
M&E - 1.50% - Landmark ML		169,018		204,792		195,026		384,250
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		1,577,514		598,789		364,500		207,456
M&E - 1.80% - Landmark		1,446,302		509,655		186,295		167,432
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		21,752		5,548		4,998		8,489
M&E - 1.80% - Landmark ML		331,433		66,039		—		—

See accompanying notes.

147

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – Asset Allocation Fund Subaccount		American Funds – Bond Fund Subaccount		American Funds – Growth Fund Subaccount		American Funds – Growth–Income Fund Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		135,665		45,533		184,149		9,311
M&E - 1.95% - Landmark		100,194		162,654		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		1,201,574		—		—		—
M&E - 2.00% - Landmark		410,171		178,316		45,744		7,952
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		3,091		4,483		—		—
M&E - 2.00% - Landmark ML		30,181		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		222,291		92,288		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		58,641		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

148

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – Asset Allocation Fund Subaccount		American Funds – Bond Fund Subaccount		American Funds – Growth Fund Subaccount		American Funds – Growth–Income Fund Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	1.116648	$	1.041503	$	1.171929	$	1.106211
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	1.116648	$	1.041503	$	1.171929	$	1.106211
M&E - 1.30% - Huntington Landmark	$	1.116648	$	1.041503	$	1.171929	$	1.106211
M&E - 1.30% - Landmark ML	$	1.116648	$	1.041503	$	1.171929	$	1.106211
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.114202	$	1.039220	$	1.169354	$	1.103785
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	1.114202	$	1.039220	$	1.169354	$	1.103785
M&E - 1.50% - Huntington Landmark	$	1.114202	$	1.039220	$	1.169354	$	1.103785
M&E - 1.50% - Landmark ML	$	1.114202	$	1.039220	$	1.169354	$	1.103785
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	1.111765	$	1.036944	$	1.166806	$	1.101360
M&E - 1.80% - Landmark	$	1.110539	$	1.035813	$	1.165523	$	1.100155
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	1.110539	$	1.035813	$	1.165523	$	1.100155
M&E - 1.80% - Huntington Landmark	$	1.110539	$	1.035813	$	1.165523	$	1.100155
M&E - 1.80% - Landmark ML	$	1.110539	$	1.035813	$	1.165523	$	1.100155

See accompanying notes.

149

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – Asset Allocation Fund Subaccount		American Funds – Bond Fund Subaccount		American Funds – Growth Fund Subaccount		American Funds – Growth–Income Fund Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	1.109332	$	1.034670	$	1.164254	$	1.098962
M&E - 1.95% - Landmark	$	1.108724	$	1.034117	$	—	$	—
M&E - 1.95% - Landmark Select	$	1.108724	$	1.034117	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	1.108724	$	1.034117	$	—	$	—
M&E - 1.95% - Landmark ML	$	1.108724	$	1.034117	$	—	$	—
M&E - 2.00% - Landmark	$	1.108122	$	1.033538	$	1.162985	$	1.097757
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	1.108122	$	1.033538	$	1.162985	$	1.097757
M&E - 2.00% - Huntington Landmark	$	1.108122	$	1.033538	$	1.162985	$	1.097757
M&E - 2.00% - Landmark ML	$	1.108122	$	1.033538	$	1.162985	$	1.097757
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	1.105694	$	1.031303	$	1.160449	$	1.095372
M&E - 2.30% - Landmark	$	1.104500	$	1.030171	$	1.159181	$	1.094182
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	1.104500	$	1.030171	$	1.159181	$	1.094182
M&E - 2.30% - Huntington Landmark	$	1.104500	$	1.030171	$	1.159181	$	1.094182
M&E - 2.30% - Landmark ML	$	1.104500	$	1.030171	$	1.159181	$	1.094182
M&E - 2.35% - Freedom	$	1.103903	$	1.029604	$	—	$	—
M&E - 2.45% - Landmark	$	1.102698	$	1.028491	$	—	$	—
M&E - 2.45% - Landmark Select	$	1.102698	$	1.028491	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	1.102698	$	1.028491	$	—	$	—
M&E - 2.45% - Landmark ML	$	1.102698	$	1.028491	$	—	$	—

See accompanying notes.

150

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – Asset Allocation Fund Subaccount		American Funds – Bond Fund Subaccount		American Funds – Growth Fund Subaccount		American Funds – Growth–Income Fund Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

151

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – Asset Allocation Fund Subaccount		American Funds – Bond Fund Subaccount		American Funds – Growth Fund Subaccount		American Funds – Growth–Income Fund Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

152

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – Asset Allocation Fund Subaccount		American Funds – Bond Fund Subaccount		American Funds – Growth Fund Subaccount		American Funds – Growth–Income Fund Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

153

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – Asset Allocation Fund Subaccount		American Funds – Bond Fund Subaccount		American Funds – Growth Fund Subaccount		American Funds – Growth–Income Fund Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

154

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – International Fund Subaccount		GE Investments Total Return Fund Subaccount		MTB Managed Allocation Fund – Moderate Growth  II Subaccount		BlackRock Basic  Value V.I. Subaccount
Assets
Investment in securities:
Number of shares - Initial		444,311.646		477,196.468		62,453.384		2,547,578.738
Cost	$	7,489,363	$	7,345,240	$	551,410	$	35,208,979
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	7,988,723	$	7,816,478	$	594,556	$	30,418,090
Receivable for units sold		—		—		2		9
Total assets		7,988,723		7,816,478		594,558		30,418,099
Liabilities
Payable for units redeemed		12		1		—		—
	$	7,988,711	$	7,816,477	$	594,558	$	30,418,099
Net Assets:
Deferred annuity contracts terminable by owners	$	7,988,711	$	7,816,477	$	594,558	$	30,418,099
Total net assets	$	7,988,711	$	7,816,477	$	594,558	$	30,418,099

See accompanying notes.

155

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – International Fund Subaccount		GE Investments Total Return Fund Subaccount		MTB Managed Allocation Fund – Moderate Growth  II Subaccount		BlackRock Basic Value V.I. Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		1,891,322
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		5,094,394		4,397,141		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		447,891		—
M&E - 1.30% - Huntington Landmark		49,630		69,158		—		—
M&E - 1.30% - Landmark ML		10,714		564,496		—		1,015,892
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		3,654,915
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		1,913,943		715,680		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		59,152		—
M&E - 1.50% - Huntington Landmark		29,962		19,278		—		—
M&E - 1.50% - Landmark ML		222,946		31,182		—		6,755,078
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		5,745,329
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		261,102		373,010		—		—
M&E - 1.80% - Landmark		113,696		519,665		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		3,133		—		—		—
M&E - 1.80% - Landmark ML		—		53,403		—		—

See accompanying notes.

156

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – International Fund Subaccount		GE Investments Total Return Fund Subaccount		MTB Managed Allocation Fund – Moderate Growth  II Subaccount		BlackRock Basic  Value V.I. Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		17,940		32,381		—		—
M&E - 1.95% - Landmark		—		25,513		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		6,675		396,458		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		31,141		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		6,807		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

157

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – International Fund Subaccount		GE Investments Total Return Fund Subaccount		MTB Managed Allocation Fund – Moderate Growth  II Subaccount		BlackRock Basic Value V.I. Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	1.268565
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	1.035154	$	1.081849	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	1.035154	$	1.081849	$	1.174388	$	—
M&E - 1.30% - Huntington Landmark	$	1.035154	$	1.081849	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.035154	$	1.081849	$	—	$	1.284217
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	1.975611
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.032876	$	1.079477	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	1.032876	$	1.079477	$	1.159056	$	—
M&E - 1.50% - Huntington Landmark	$	1.032876	$	1.079477	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.032876	$	1.079477	$	—	$	1.238656
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	1.936582
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	1.030620	$	1.077107	$	—	$	—
M&E - 1.80% - Landmark	$	1.029486	$	1.075922	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	1.029486	$	1.075922	$	1.136454	$	—
M&E - 1.80% - Huntington Landmark	$	1.029486	$	1.075922	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.029486	$	1.075922	$	—	$	1.230539

See accompanying notes.

158

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – International Fund Subaccount		GE Investments Total Return Fund Subaccount		MTB Managed Allocation Fund – Moderate Growth  II Subaccount		BlackRock Basic Value V.I. Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	1.028362	$	1.074749	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	1.074161	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	1.074161	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	1.074161	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	1.074161	$	—	$	—
M&E - 2.00% - Landmark	$	1.027239	$	1.073573	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	1.027239	$	1.073573	$	1.121899	$	—
M&E - 2.00% - Huntington Landmark	$	1.027239	$	1.073573	$	—	$	—
M&E - 2.00% - Landmark ML	$	1.027239	$	1.073573	$	—	$	1.496482
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	1.204600
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	1.025002	$	1.071233	$	—	$	—
M&E - 2.30% - Landmark	$	1.023881	$	1.070072	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	1.023881	$	1.070072	$	1.101285	$	—
M&E - 2.30% - Huntington Landmark	$	1.023881	$	1.070072	$	—	$	—
M&E - 2.30% - Landmark ML	$	1.023881	$	1.070072	$	—	$	1.463114
M&E - 2.35% - Freedom	$	—	$	1.069482	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	1.068314	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	1.068314	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	1.068314	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	1.068314	$	—	$	—

See accompanying notes.

159

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – International Fund Subaccount		GE Investments Total Return Fund Subaccount		MTB Managed Allocation Fund – Moderate Growth  II Subaccount		BlackRock Basic Value V.I. Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

160

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – International Fund Subaccount		GE Investments Total Return Fund Subaccount		MTB Managed Allocation Fund – Moderate Growth  II Subaccount		BlackRock Basic Value V.I. Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

161

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – International Fund Subaccount		GE Investments Total Return Fund Subaccount		MTB Managed Allocation Fund – Moderate Growth  II Subaccount		BlackRock Basic Value V.I. Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

162

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	American Funds – International Fund Subaccount		GE Investments Total Return Fund Subaccount		MTB Managed Allocation Fund – Moderate Growth  II Subaccount		BlackRock Basic Value V.I. Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

163

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	BlackRock High Income V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount		Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount
Assets
Investment in securities:
Number of shares - Initial		1,335,244.851		1,670,396.995		60,608.024		40,857.425
Cost	$	8,671,828	$	25,364,554	$	549,933	$	282,174
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	9,520,296	$	26,976,911	$	590,928	$	319,096
Receivable for units sold		784		—		3		—
Total assets		9,521,080		26,976,911		590,931		319,096
Liabilities
Payable for units redeemed		—		665		—		1
	$	9,521,080	$	26,976,246	$	590,931	$	319,095
Net Assets:
Deferred annuity contracts terminable by owners	$	9,521,080	$	26,976,246	$	590,931	$	319,095
Total net assets	$	9,521,080	$	26,976,246	$	590,931	$	319,095

See accompanying notes.

164

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	BlackRock High Income V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount		Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		562,292		884,397		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		357,561		242,231
M&E - 1.30% - Landmark ML		398,843		2,928,706		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		1,560,642		3,001,511		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		240,321		94,533
M&E - 1.50% - Landmark ML		1,391,695		2,668,120		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		1,475,595		6,677,683		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		10,054		12,953
M&E - 1.80% - Landmark ML		23,262		—		—		—

See accompanying notes.

165

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	BlackRock High Income V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount		Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		20,045		38,067
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

166

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	BlackRock High Income V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount		Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	1.797749	$	2.220125	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	0.944278	$	0.826457
M&E - 1.30% - Landmark ML	$	1.791215	$	2.044707	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	1.766779	$	1.386872	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	0.938133	$	0.821074
M&E - 1.50% - Landmark ML	$	1.755413	$	2.167746	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	1.731892	$	1.359440	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	0.929015	$	0.813092
M&E - 1.80% - Landmark ML	$	1.716320	$	1.959188	$	—	$	—

See accompanying notes.

167

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	BlackRock High Income V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount		Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	0.922991	$	0.807814
M&E - 2.00% - Landmark ML	$	1.593933	$	2.374759	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	1.680202	$	1.917983	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	0.914045	$	0.799994
M&E - 2.30% - Landmark ML	$	1.558390	$	2.321873	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

168

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	BlackRock High Income V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount		Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

169

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	BlackRock High Income V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount		Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

170

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	BlackRock High Income V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount		Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

171

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	BlackRock High Income V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount		Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

172

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Income Equity Subaccount		Huntington VA International Equity Subaccount		Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount
Assets
Investment in securities:
Number of shares - Initial		10,493.347		135,278.258		12,111.908		29,778.906
Cost	$	73,242	$	1,710,973	$	99,098	$	449,439
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	90,977	$	1,956,124	$	109,128	$	525,300
Receivable for units sold		9		—		—		4
Total assets		90,986		1,956,124		109,128		525,304
Liabilities
Payable for units redeemed		—		1		—		—
	$	90,986	$	1,956,123	$	109,128	$	525,304
Net Assets:
Deferred annuity contracts terminable by owners	$	90,986	$	1,956,123	$	109,128	$	525,304
Total net assets	$	90,986	$	1,956,123	$	109,128	$	525,304

See accompanying notes.

173

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Income Equity Subaccount		Huntington VA International Equity Subaccount		Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		92,739		1,496,703		65,745		355,984
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		21,804		486,936		64,119		172,576
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		122,318		—		3,227
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

174

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Income Equity Subaccount		Huntington VA International Equity Subaccount		Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		78,465		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

175

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Income Equity Subaccount		Huntington VA International Equity Subaccount		Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	0.795320	$	0.898335	$	0.843035	$	0.990004
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	0.790145	$	0.892478	$	0.837553	$	0.983539
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	0.782464	$	0.883797	$	0.829402	$	0.973981
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

176

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Income Equity Subaccount		Huntington VA International Equity Subaccount		Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	0.777378	$	0.878071	$	0.824017	$	0.967667
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	0.769845	$	0.869562	$	0.816039	$	0.958281
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

177

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Income Equity Subaccount		Huntington VA International Equity Subaccount		Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

178

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Income Equity Subaccount		Huntington VA International Equity Subaccount		Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

179

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Income Equity Subaccount		Huntington VA International Equity Subaccount		Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

180

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Income Equity Subaccount		Huntington VA International Equity Subaccount		Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

181

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Mortgage Securities Subaccount		Huntington VA New Economy Subaccount		Huntington VA Real Strategies Subaccount		Huntington VA Rotating Markets Subaccount
Assets
Investment in securities:
Number of shares - Initial		97,725.399		17,476.440		72,007.833		52,939.024
Cost	$	1,106,482	$	191,920	$	556,972	$	553,814
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	1,122,865	$	221,077	$	670,393	$	587,623
Receivable for units sold		—		7		5		—
Total assets		1,122,865		221,084		670,398		587,623
Liabilities
Payable for units redeemed		5		—		—		—
	$	1,122,860	$	221,084	$	670,398	$	587,623
Net Assets:
Deferred annuity contracts terminable by owners	$	1,122,860	$	221,084	$	670,398	$	587,623
Total net assets	$	1,122,860	$	221,084	$	670,398	$	587,623

See accompanying notes.

182

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Mortgage Securities Subaccount		Huntington VA New Economy Subaccount		Huntington VA Real Strategies Subaccount		Huntington VA Rotating Markets Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		783,122		114,123		390,926		261,386
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		166,469		140,682		259,769		416,129
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		54,293		2,401		30,788		10,794
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

183

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Mortgage Securities Subaccount		Huntington VA New Economy Subaccount		Huntington VA Real Strategies Subaccount		Huntington VA Rotating Markets Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		21,053		36,468		40,685		20,558
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

184

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Mortgage Securities Subaccount		Huntington VA New Economy Subaccount		Huntington VA Real Strategies Subaccount		Huntington VA Rotating Markets Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	1.098143	$	0.757403	$	0.932329	$	0.832886
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	1.091036	$	0.752473	$	0.926246	$	0.827480
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	1.080404	$	0.745148	$	0.917227	$	0.819420
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

185

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Mortgage Securities Subaccount		Huntington VA New Economy Subaccount		Huntington VA Real Strategies Subaccount		Huntington VA Rotating Markets Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	1.073405	$	0.740317	$	0.911302	$	0.814100
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	1.063035	$	0.733134	$	0.902466	$	0.806224
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

186

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Mortgage Securities Subaccount		Huntington VA New Economy Subaccount		Huntington VA Real Strategies Subaccount		Huntington VA Rotating Markets Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		—		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

187

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Mortgage Securities Subaccount		Huntington VA New Economy Subaccount		Huntington VA Real Strategies Subaccount		Huntington VA Rotating Markets Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		—		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		—		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		—		—		—		—
M&E - 2.30% - Landmark		—		—		—		—
M&E - 2.30% - Suntrust Landmark		—		—		—		—
M&E - 2.30% - Landmark Select		—		—		—		—
M&E - 2.30% - Huntington Landmark		—		—		—		—
M&E - 2.30% - Landmark ML		—		—		—		—
M&E - 2.35% - Freedom		—		—		—		—
M&E - 2.45% - Landmark		—		—		—		—
M&E - 2.45% - Landmark Select		—		—		—		—
M&E - 2.45% - Huntington Landmark		—		—		—		—
M&E - 2.45% - Landmark ML		—		—		—		—

See accompanying notes.

188

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Mortgage Securities Subaccount		Huntington VA New Economy Subaccount		Huntington VA Real Strategies Subaccount		Huntington VA Rotating Markets Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

189

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Mortgage Securities Subaccount		Huntington VA New Economy Subaccount		Huntington VA Real Strategies Subaccount		Huntington VA Rotating Markets Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	—

See accompanying notes.

190

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Situs Subaccount		Huntington VA Balanced Allocation Subaccount
Assets
Investment in securities:
Number of shares - Initial		121,304.546		1,283,705.321
Cost	$	1,443,450	$	15,643,059
Number of shares - Service		—		—
Cost	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	1,818,355	$	17,021,933
Receivable for units sold		—		—
Total assets		1,818,355		17,021,933
Liabilities
Payable for units redeemed		—		1
	$	1,818,355	$	17,021,932
Net Assets:
Deferred annuity contracts terminable by owners	$	1,818,355	$	17,021,932
Total net assets	$	1,818,355	$	17,021,932

See accompanying notes.

191

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Situs Subaccount		Huntington VA Balanced Allocation Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—
M&E - 1.25% - Landmark ML		—		—
M&E - 1.25% - Freedom		—		—
M&E - 1.30% - Landmark		—		—
M&E - 1.30% - Suntrust Landmark		—		—
M&E - 1.30% - Landmark Select		—		—
M&E - 1.30% - Huntington Landmark		1,272,413		8,552,245
M&E - 1.30% - Landmark ML		—		—
M&E - 1.40% - Landmark		—		—
M&E - 1.40% - Landmark ML		—		—
M&E - 1.40% - Freedom		—		—
M&E - 1.50% - Landmark		—		—
M&E - 1.50% - Suntrust Landmark		—		—
M&E - 1.50% - Landmark Select		—		—
M&E - 1.50% - Huntington Landmark		445,719		3,260,026
M&E - 1.50% - Landmark ML		—		—
M&E - 1.50% - Freedom		—		—
M&E - 1.55% - Landmark		—		—
M&E - 1.55% - Landmark ML		—		—
M&E - 1.65% - Freedom		—		—
M&E - 1.70% - Freedom		—		—
M&E - 1.80% - Landmark		—		—
M&E - 1.80% - Suntrust Landmark		—		—
M&E - 1.80% - Landmark Select		—		—
M&E - 1.80% - Huntington Landmark		94,795		1,087,451
M&E - 1.80% - Landmark ML		—		—

See accompanying notes.

192

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Situs Subaccount		Huntington VA Balanced Allocation Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—
M&E - 1.90% - Freedom		—		—
M&E - 1.95% - Landmark		—		—
M&E - 1.95% - Landmark Select		—		—
M&E - 1.95% - Huntington Landmark		—		3,402
M&E - 1.95% - Landmark ML		—		—
M&E - 2.00% - Landmark		—		—
M&E - 2.00% - Suntrust Landmark		—		—
M&E - 2.00% - Landmark Select		—		—
M&E - 2.00% - Huntington Landmark		45,714		216,745
M&E - 2.00% - Landmark ML		—		—
M&E - 2.05% - Landmark		—		—
M&E - 2.05% - Landmark ML		—		—
M&E - 2.15% - Freedom		—		—
M&E - 2.20% - Freedom		—		—
M&E - 2.30% - Landmark		—		—
M&E - 2.30% - Suntrust Landmark		—		—
M&E - 2.30% - Landmark Select		—		—
M&E - 2.30% - Huntington Landmark		—		—
M&E - 2.30% - Landmark ML		—		—
M&E - 2.35% - Freedom		—		—
M&E - 2.45% - Landmark		—		—
M&E - 2.45% - Landmark Select		—		—
M&E - 2.45% - Huntington Landmark		—		19,875
M&E - 2.45% - Landmark ML		—		—

See accompanying notes.

193

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Situs Subaccount		Huntington VA Balanced Allocation Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	0.981202	$	1.298299
M&E - 1.30% - Landmark ML	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	0.974845	$	1.292837
M&E - 1.50% - Landmark ML	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	0.965352	$	1.284703
M&E - 1.80% - Landmark ML	$	—	$	—

See accompanying notes.

194

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Situs Subaccount		Huntington VA Balanced Allocation Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	1.280660
M&E - 1.95% - Landmark ML	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	0.959073	$	1.279305
M&E - 2.00% - Landmark ML	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	0.949791	$	1.271306
M&E - 2.30% - Landmark ML	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	1.267315
M&E - 2.45% - Landmark ML	$	—	$	—

See accompanying notes.

195

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Situs Subaccount		Huntington VA Balanced Allocation Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—
M&E - 1.25% - Landmark ML		—		—
M&E - 1.25% - Freedom		—		—
M&E - 1.30% - Landmark		—		—
M&E - 1.30% - Suntrust Landmark		—		—
M&E - 1.30% - Landmark Select		—		—
M&E - 1.30% - Huntington Landmark		—		—
M&E - 1.30% - Landmark ML		—		—
M&E - 1.40% - Landmark		—		—
M&E - 1.40% - Landmark ML		—		—
M&E - 1.40% - Freedom		—		—
M&E - 1.50% - Landmark		—		—
M&E - 1.50% - Suntrust Landmark		—		—
M&E - 1.50% - Landmark Select		—		—
M&E - 1.50% - Huntington Landmark		—		—
M&E - 1.50% - Landmark ML		—		—
M&E - 1.50% - Freedom		—		—
M&E - 1.55% - Landmark		—		—
M&E - 1.55% - Landmark ML		—		—
M&E - 1.65% - Freedom		—		—
M&E - 1.70% - Freedom		—		—
M&E - 1.80% - Landmark		—		—
M&E - 1.80% - Suntrust Landmark		—		—
M&E - 1.80% - Landmark Select		—		—
M&E - 1.80% - Huntington Landmark		—		—
M&E - 1.80% - Landmark ML		—		—

See accompanying notes.

196

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Situs Subaccount		Huntington VA Balanced Allocation Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—
M&E - 1.90% - Freedom		—		—
M&E - 1.95% - Landmark		—		—
M&E - 1.95% - Landmark Select		—		—
M&E - 1.95% - Huntington Landmark		—		—
M&E - 1.95% - Landmark ML		—		—
M&E - 2.00% - Landmark		—		—
M&E - 2.00% - Suntrust Landmark		—		—
M&E - 2.00% - Landmark Select		—		—
M&E - 2.00% - Huntington Landmark		—		—
M&E - 2.00% - Landmark ML		—		—
M&E - 2.05% - Landmark		—		—
M&E - 2.05% - Landmark ML		—		—
M&E - 2.15% - Freedom		—		—
M&E - 2.20% - Freedom		—		—
M&E - 2.30% - Landmark		—		—
M&E - 2.30% - Suntrust Landmark		—		—
M&E - 2.30% - Landmark Select		—		—
M&E - 2.30% - Huntington Landmark		—		—
M&E - 2.30% - Landmark ML		—		—
M&E - 2.35% - Freedom		—		—
M&E - 2.45% - Landmark		—		—
M&E - 2.45% - Landmark Select		—		—
M&E - 2.45% - Huntington Landmark		—		—
M&E - 2.45% - Landmark ML		—		—

See accompanying notes.

197

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Situs Subaccount		Huntington VA Balanced  Allocation Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—
M&E - 1.30% - Landmark	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—
M&E - 1.30% - Landmark ML	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—
M&E - 1.50% - Landmark ML	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—
M&E - 1.80% - Landmark ML	$	—	$	—

See accompanying notes.

198

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2010

	Huntington VA Situs Subaccount		Huntington VA Balanced Allocation Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—
M&E - 2.00% - Landmark	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	-	$	—
M&E - 2.00% - Landmark Select	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	—	$	—
M&E - 2.00% - Landmark ML	$	—	$	—
M&E - 2.05% - Landmark	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—
M&E - 2.30% - Landmark	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—
M&E - 2.30% - Landmark ML	$	—	$	—
M&E - 2.35% - Freedom	$	—	$	—
M&E - 2.45% - Landmark	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	—

See accompanying notes.

199

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Transamerica Asset Allocation - Growth VP Subaccount			Transamerica Asset Allocation - Conservative VP Subaccount			Transamerica Asset Allocation - Moderate VP Subaccount			Transamerica Asset Allocation - Moderate Growth VP Subaccount
Net investment income (loss)
Income:
Dividends	$	3,501,826		$	19,851,543		$	36,143,871		$	35,347,854
Expenses:
Administrative, mortality and expense risk charge		5,128,752			9,043,613			17,842,932			24,785,582
Net investment income (loss)		(1,626,926	)		10,807,930			18,300,939			10,562,272
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			1,755,459			—			—
Proceeds from sales		66,075,620			137,260,264			165,805,120			190,926,581
Cost of investments sold		105,050,678			153,685,387			197,343,126			242,450,812
Net realized capital gains (losses) on investments		(38,975,058	)		(14,669,664	)		(31,538,006	)		(51,524,231	)
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(133,102,885	)		(5,362,629	)		(150,665,672	)		(337,429,463	)
End of period		(49,390,304	)		43,505,750			(34,149,138	)		(119,096,202	)
Net change in unrealized appreciation/depreciation of investments		83,712,581			48,868,379			116,516,534			218,333,261
Net realized and unrealized capital gains (losses) on investments		44,737,523			34,198,715			84,978,528			166,809,030
Increase (decrease) in net assets from operations	$	43,110,597		$	45,006,645		$	103,279,467		$	177,371,302

See accompanying notes.

200

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Transamerica WMC Diversified Growth VP Subaccount			Transamerica MFS International Equity VP Subaccount			Transamerica Clarion Global Real Estate Securities VP Subaccount			Transamerica Diversified  Equity VP Subaccount
Net investment income (loss)
Income:
Dividends	$	892,812		$	894,641		$	3,061,880		$	1,092,036
Expenses:
Administrative, mortality and expense risk charge		2,434,739			962,896			723,907			1,535,572
Net investment income (loss)		(1,541,927	)		(68,255	)		2,337,973			(443,536	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—			—			—
Proceeds from sales		28,248,096			12,877,408			9,429,427			22,694,074
Cost of investments sold		36,164,501			19,319,532			18,591,819			17,888,563
Net realized capital gains (losses) on investments		(7,916,405	)		(6,442,124	)		(9,162,392	)		4,805,511
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(52,380,740	)		(17,309,933	)		(24,977,773	)		19,676,767
End of period		(16,998,191	)		(5,565,090	)		(11,639,196	)		30,096,857
Net change in unrealized appreciation/depreciation of investments		35,382,549			11,744,843			13,338,577			10,420,090
Net realized and unrealized capital gains (losses) on investments		27,466,144			5,302,719			4,176,185			15,225,601
Increase (decrease) in net assets from operations	$	25,924,217		$	5,234,464		$	6,514,158		$	14,782,065

See accompanying notes.

201

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Transamerica Balanced VP Subaccount			Transamerica Jennison Growth VP Subaccount			Transamerica JPMorgan Enhanced Index VP Subaccount			Transamerica AEGON High Yield Bond VP Subaccount
Net investment income (loss)
Income:
Dividends	$	237,956		$	63,376		$	1,067,198		$	14,197,163
Expenses:
Administrative, mortality and expense risk charge		725,750			1,835,892			1,177,384			1,442,251
Net investment income (loss)		(487,794	)		(1,772,516	)		(110,186	)		12,754,912
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—			—			—
Proceeds from sales		8,146,291			26,349,750			15,306,461			45,895,909
Cost of investments sold		8,673,742			26,491,321			18,257,518			51,167,477
Net realized capital gains (losses) on investments		(527,451	)		(141,571	)		(2,951,057	)		(5,271,568	)
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(750,148	)		(19,139	)		(15,081,086	)		243,676
End of period		11,220,778			14,788,780			(1,807,605	)		2,833,611
Net change in unrealized appreciation/depreciation of investments		11,970,926			14,807,919			13,273,481			2,589,935
Net realized and unrealized capital gains (losses) on investments		11,443,475			14,666,348			10,322,424			(2,681,633	)
Increase (decrease) in net assets from operations	$	10,955,681		$	12,893,832		$	10,212,238		$	10,073,279

See accompanying notes.

202

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Transamerica Growth Opportunities VP Subaccount			Transamerica BlackRock Large Cap Value VP Subaccount			Transamerica PIMCO Total Return VP Subaccount		Transamerica Focus VP Subaccount
Net investment income (loss)
Income:
Dividends	$	14,370		$	2,777,468		$	19,412,263	$	630,205
Expenses:
Administrative, mortality and expense risk charge		637,617			4,684,244			6,841,765		1,083,692
Net investment income (loss)		(623,247	)		(1,906,776	)		12,570,498		(453,487	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—			669,124		—
Proceeds from sales		8,658,945			55,889,431			94,673,603		11,620,612
Cost of investments sold		11,152,001			74,639,195			89,647,375		14,198,824
Net realized capital gains (losses) on investments		(2,493,056	)		(18,749,764	)		5,695,352		(2,578,212	)
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(13,233,210	)		(15,779,406	)		3,865,736		(24,826,950	)
End of period		3,210,194			22,793,331			8,037,228		(4,420,825	)
Net change in unrealized appreciation/depreciation of investments		16,443,404			38,572,737			4,171,492		20,406,125
Net realized and unrealized capital gains (losses) on investments		13,950,348			19,822,973			9,866,844		17,827,913
Increase (decrease) in net assets from operations	$	13,327,101		$	17,916,197		$	22,437,342	$	17,374,426

See accompanying notes.

203

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Transamerica AllianceBernstein Dynamic Allocation VP Subaccount			Transamerica U.S. Government Securities VP Subaccount			Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount			Transaerica T. Rowe Price Small Cap VP Subaccount
Net investment income (loss)
Income:
Dividends	$	1,816,896		$	5,912,771		$	2,462,219		$	—
Expenses:
Administrative, mortality and expense risk charge		517,905			2,724,930			1,116,472			1,064,654
Net investment income (loss)		1,298,991			3,187,841			1,345,747			(1,064,654	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			4,390,209			1,926,120			—
Proceeds from sales		9,596,660			87,771,370			62,845,733			14,327,934
Cost of investments sold		11,764,420			83,939,237			58,527,256			19,504,089
Net realized capital gains (losses) on investments		(2,167,760	)		8,222,342			6,244,597			(5,176,155	)
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(844,743	)		7,222,385			4,273,276			(19,634,126	)
End of period		2,596,808			865,234			(635,987	)		7,910,198
Net change in unrealized appreciation/depreciation of investments		3,441,551			(6,357,151	)		(4,909,263	)		27,544,324
Net realized and unrealized capital gains (losses) on investments		1,273,791			1,865,191			1,335,334			22,368,169
Increase (decrease) in net assets from operations	$	2,572,782		$	5,053,032		$	2,681,081		$	21,303,515

See accompanying notes.

204

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Transamerica Morgan Stanley Active International Allocation VP Subaccount			Transamerica Multi Managed Large Cap Core VP Subaccount			Transamerica Money Market VP Subaccount			Transamerica Morgan Stanley Mid- Cap Growth VP Subaccount
Net investment income (loss)
Income:
Dividends	$	2,012,786		$	1,028,226		$	13,048 $			41,053
Expenses:
Administrative, mortality and expense risk charge		1,478,528			2,272,265			3,737,689			558,599
Net investment income (loss)		534,258			(1,244,039	)		(3,724,641	)		(517,546	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—			—			—
Proceeds from sales		21,726,465			27,995,866			189,598,900			7,764,105
Cost of investments sold		24,739,474			28,205,507			189,598,900			5,348,142
Net realized capital gains (losses) on investments		(3,013,009	)		(209,641	)		—			2,415,963
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(21,075,171	)		11,664,431			—			4,345,820
End of period		(12,594,639	)		38,646,100			—			13,639,506
Net change in unrealized appreciation/depreciation of investments		8,480,532			26,981,669			—			9,293,686
Net realized and unrealized capital gains (losses) on investments		5,467,523			26,772,028			—			11,709,649
Increase (decrease) in net assets from operations	$	6,001,781		$	25,527,989		$	(3,724,641	)	$	11,192,103

See accompanying notes.

205

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Transamerica International Moderate Growth VP - SC Subaccount			Transamerica Small/Mid Cap Value VP Subaccount			Transamerica Index 50 VP - SC Subaccount			Transamerica Index 75 VP - SC Subaccount
Net investment income (loss)
Income:
Dividends	$	3,741,750		$	1,035,697		$	717,549		$	1,605,544
Expenses:
Administrative, mortality and expense risk charge		2,137,907			2,023,612			884,181			1,827,140
Net investment income (loss)		1,603,843			(987,915	)		(166,632	)		(221,596	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—			656,996			1,364,487
Proceeds from sales		11,920,648			21,436,528			10,938,245			6,500,537
Cost of investments sold		15,404,070			9,469,524			9,369,180			6,386,075
Net realized capital gains (losses) on investments		(3,483,422	)		11,967,004			2,226,061			1,478,949
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(9,774,118	)		18,562,326			4,270,757			12,715,553
End of period		5,011,083			45,114,954			8,359,936			28,449,772
Net change in unrealized appreciation/depreciation of investments		14,785,201			26,552,628			4,089,179			15,734,219
Net realized and unrealized capital gains (losses) on investments		11,301,779			38,519,632			6,315,240			17,213,168
Increase (decrease) in net assets from operations	$	12,905,622		$	37,531,717		$	6,148,608		$	16,991,572

See accompanying notes.

206

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Transamerica Efficient Markets VP - SC Subaccount			Transamerica BlackRock Global Allocation VP -  SC Subaccount			Transamerica BlackRock Tactical Allocation VP - SC Subaccount			Transamerica ProFunds UltraBear VP - SC OAM Subaccount
Net investment income (loss)
Income:
Dividends	$	91,793		$	844,987		$	227,441		$	—
Expenses:
Administrative, mortality and expense risk charge		207,003			2,565,460			749,751			144,993
Net investment income (loss)		(115,210	)		(1,720,473	)		(522,310	)		(144,993	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		247,765			—			177,208			—
Proceeds from sales		1,055,414			2,992,665			2,993,733			29,214,142
Cost of investments sold		801,648			2,590,072			2,511,073			33,347,134
Net realized capital gains (losses) on investments		501,531			402,593			659,868			(4,132,992	)
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		782,890			2,702,193			662,568			(47,504	)
End of period		2,091,514			24,723,331			6,633,918			(1,714,157	)
Net change in unrealized appreciation/depreciation of investments		1,308,624			22,021,138			5,971,350			(1,666,653	)
Net realized and unrealized capital gains (losses) on investments		1,810,155			22,423,731			6,631,218			(5,799,645	)
Increase (decrease) in net assets from operations	$	1,694,945		$	20,703,258		$	6,108,908		$	(5,944,638	)

See accompanying notes.

207

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Transamerica Foxhall Global Growth VP - SC Subaccount			Transamerica Foxhall Global Conservative VP -  SC Subaccount			Transamerica Foxhall Global Hard Asset VP - SC Subaccount			Transamerica Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount
Net investment income (loss)
Income:
Dividends	$	26,762		$	9,004		$	14,147		$	33,740
Expenses:
Administrative, mortality and expense risk charge		121,332			94,129			122,036			138,497
Net investment income (loss)		(94,570	)		(85,125	)		(107,889	)		(104,757	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		69,520			5,254			33,805			81,881
Proceeds from sales		626,810			1,064,331			1,399,713			1,013,189
Cost of investments sold		636,971			1,123,310			1,484,888			1,090,295
Net realized capital gains (losses) on investments		59,359			(53,725	)		(51,370	)		4,775
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		7,561			(1,612	)		(4,832	)		23,477
End of period		968,528			(280,754	)		933,339			1,060,213
Net change in unrealized appreciation/depreciation of investments		960,967			(279,142	)		938,171			1,036,736
Net realized and unrealized capital gains (losses) on investments		1,020,326			(332,867	)		886,801			1,041,511
Increase (decrease) in net assets from operations	$	925,756		$	(417,992	)	$	778,912		$	936,754

See accompanying notes.

208

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Transamerica Hanlon Growth VP - SC Subaccount			Transamerica Hanlon Growth and Income VP - SC Subaccount			Transamerica Hanlon Balanced VP - SC Subaccount			Transamerica Hanlon Managed Income VP - SC Subaccount
Net investment income (loss)
Income:
Dividends	$	80,761		$	60,805		$	63,608		$	168,527
Expenses:
Administrative, mortality and expense risk charge		96,134			110,804			211,684			1,017,742
Net investment income (loss)		(15,373	)		(49,999	)		(148,076	)		(849,215	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		53,681			35,166			31,089			283,834
Proceeds from sales		1,172,336			2,734,851			1,247,568			5,984,605
Cost of investments sold		1,259,799			2,897,059			1,301,455			5,967,838
Net realized capital gains (losses) on investments		(33,782	)		(127,042	)		(22,798	)		300,601
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		9,263			3,760			15,704			13,224
End of period		569,981			407,469			310,176			(796,757	)
Net change in unrealized appreciation/depreciation of investments		560,718			403,709			294,472			(809,981	)
Net realized and unrealized capital gains (losses) on investments		526,936			276,667			271,674			(509,380	)
Increase (decrease) in net assets from operations	$	511,563		$	226,668		$	123,598		$	(1,358,595	)

See accompanying notes.

209

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Transamerica Index 35 VP - SC Subaccount			Transamerica Index 100 VP - SC Subaccount			Transamerica JPMorgan Mid Cap Value VP - SC Subaccount		Invesco V.I. Basic Value Subaccount
Net investment income (loss)
Income:
Dividends	$	2,901		$	2,423		$	97,867	$	83,779
Expenses:
Administrative, mortality and expense risk charge		135,046			45,048			51,465		349,278
Net investment income (loss)		(132,145	)		(42,625	)		46,402		(265,499	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			389			—		—
Proceeds from sales		995,209			651,452			1,922,132		5,874,339
Cost of investments sold		937,539			647,554			1,901,013		10,693,567
Net realized capital gains (losses) on investments		57,670			4,287			21,119		(4,819,228	)
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(855	)		872			1,282		(8,706,386	)
End of period		1,007,031			741,434			702,349		(2,549,015	)
Net change in unrealized appreciation/depreciation of investments		1,007,886			740,562			701,067		6,157,371
Net realized and unrealized capital gains (losses) on investments		1,065,556			744,849			722,186		1,338,143
Increase (decrease) in net assets from operations	$	933,411		$	702,224		$	768,588	$	1,072,644

See accompanying notes.

210

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Invesco V.I. Capital Appreciation Subaccount			AllianceBernstein Growth & Income Subaccount			AllianceBernstein Large Cap Growth Subaccount			AllianceBernstein Balanced Wealth Strategy Subaccount
Net investment income (loss)
Income:
Dividends	$	30,816		$	—		$	55,840		$	296,054
Expenses:
Administrative, mortality and expense risk charge		87,250			563,786			305,444			214,404
Net investment income (loss)		(56,434	)		(563,786	)		(249,604	)		81,650
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—			—			—
Proceeds from sales		1,181,000			5,244,997			3,346,710			1,015,437
Cost of investments sold		1,252,396			7,020,139			2,707,709			839,639
Net realized capital gains (losses) on investments		(71,396	)		(1,775,142	)		639,001			175,798
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(955,642	)		(16,799,350	)		1,733,975			1,111,085
End of period		(40,146	)		(10,319,850	)		3,032,887			2,074,013
Net change in unrealized appreciation/depreciation of investments		915,496			6,479,500			1,298,912			962,928
Net realized and unrealized capital gains (losses) on investments		844,100			4,704,358			1,937,913			1,138,726
Increase (decrease) in net assets from operations	$	787,666		$	4,140,572		$	1,688,309		$	1,220,376

See accompanying notes.

211

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Janus Aspen- Enterprise Subaccount			Janus Aspen Perkins- Mid Cap Value Subaccount			Janus Aspen- Worldwide Subaccount			MFS® New Discovery Subaccount
Net investment income (loss)
Income:
Dividends	$	—		$	15,130		$	176,723		$	—
Expenses:
Administrative, mortality and expense risk charge		265,218			43,882			533,385			437,082
Net investment income (loss)		(265,218	)		(28,752	)		(356,662	)		(437,082	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—			—			—
Proceeds from sales		5,973,637			394,037			7,450,678			4,749,342
Cost of investments sold		7,076,365			282,319			9,423,768			5,415,245
Net realized capital gains (losses) on investments		(1,102,728	)		111,718			(1,973,090	)		(665,903	)
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(254,899	)		(10,970	)		(4,939,560	)		680,902
End of period		5,075,379			300,967			1,982,042			11,217,352
Net change in unrealized appreciation/depreciation of investments		5,330,278			311,937			6,921,602			10,536,450
Net realized and unrealized capital gains (losses) on investments		4,227,550			423,655			4,948,512			9,870,547
Increase (decrease) in net assets from operations	$	3,962,332		$	394,903		$	4,591,850		$	9,433,465

See accompanying notes.

212

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	MFS® Total  Return Subaccount			Fidelity VIP Contrafund® Subaccount			Fidelity VIP Equity- Income Subaccount			Fidelity VIP Growth Subaccount
Net investment income (loss)
Income:
Dividends	$	1,621,646		$	1,818,490		$	762,632		$	8,823
Expenses:
Administrative, mortality and expense risk charge		925,794			2,559,944			674,101			375,185
Net investment income (loss)		695,852			(741,454	)		88,531			(366,362	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			82,825			—			95,342
Proceeds from sales		10,941,903			19,715,456			5,963,458			4,074,730
Cost of investments sold		12,691,993			24,863,267			8,404,217			4,830,027
Net realized capital gains (losses) on investments		(1,750,090	)		(5,064,986	)		(2,440,759	)		(659,955	)
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(6,994,470	)		(58,250,592	)		(18,838,579	)		(6,446,026	)
End of period		(1,187,626	)		(26,836,867	)		(10,606,756	)		85,709
Net change in unrealized appreciation/depreciation of investments		5,806,844			31,413,725			8,231,823			6,531,735
Net realized and unrealized capital gains (losses) on investments		4,056,754			26,348,739			5,791,064			5,871,780
Increase (decrease) in net assets from operations	$	4,752,606		$	25,607,285		$	5,879,595		$	5,505,418

See accompanying notes.

213

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Fidelity VIP Growth Opportunities Subaccount			Fidelity VIP  Mid Cap Subaccount			Fidelity VIP Value Strategies Subaccount			Fidelity VIP Balanced Subaccount
Net investment income (loss)
Income:
Dividends	$	—		$	249,234		$	164,205		$	417,407
Expenses:
Administrative, mortality and expense risk charge		26,870			2,969,471			814,521			330,352
Net investment income (loss)		(26,870	)		(2,720,237	)		(650,316	)		87,055
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			668,352			—			151,194
Proceeds from sales		330,382			26,658,272			11,150,920			1,970,577
Cost of investments sold		271,957			26,747,036			16,196,743			1,504,116
Net realized capital gains (losses) on investments		58,425			579,588			(5,045,823	)		617,655
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		195,521			(34,273,498	)		(17,065,897	)		3,083,958
End of period		524,869			16,287,125			794,022			6,262,646
Net change in unrealized appreciation/depreciation of investments		329,348			50,560,623			17,859,919			3,178,688
Net realized and unrealized capital gains (losses) on investments		387,773			51,140,211			12,814,096			3,796,343
Increase (decrease) in net assets from operations	$	360,903		$	48,419,974		$	12,163,780		$	3,883,398

See accompanying notes.

214

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Franklin Income Securities Subaccount			Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount			Franklin Templeton Founding Funds Allocation Subaccount
Net investment income (loss)
Income:
Dividends	$	2,429,134		$	205,605	$	618,703		$	1,057,348
Expenses:
Administrative, mortality and expense risk charge		554,269			181,770		503,684			595,572
Net investment income (loss)		1,874,865			23,835		115,019			461,776
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—		—			3,996
Proceeds from sales		4,328,984			2,497,808		12,131,655			2,348,496
Cost of investments sold		5,065,239			2,460,117		13,233,799			1,672,349
Net realized capital gains (losses) on investments		(736,255	)		37,691		(1,102,144	)		680,143
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		1,469,387			802,331		937,574			3,011,366
End of period		4,613,483			2,017,848		4,174,869			5,815,155
Net change in unrealized appreciation/depreciation of investments		3,144,096			1,215,517		3,237,295			2,803,789
Net realized and unrealized capital gains (losses) on investments		2,407,841			1,253,208		2,135,151			3,483,932
Increase (decrease) in net assets from operations	$	4,282,706		$	1,277,043	$	2,250,170		$	3,945,708

See accompanying notes.

215

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	American Funds – Asset Allocation Fund Subaccount			American Funds – Bond Fund Subaccount			American Funds – Growth Fund Subaccount			American Funds – Growth–Income Fund Subaccount
Net investment income (loss)
Income:
Dividends	$	618,544		$	294,470		$	57,512		$	85,845
Expenses:
Administrative, mortality and expense risk charge		277,548			100,443			81,587			53,374
Net investment income (loss)		340,996			194,027			(24,075	)		32,471
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—			—			—
Proceeds from sales		1,552,017			1,189,604			543,736			602,413
Cost of investments sold		1,560,224			1,131,528			546,326			627,459
Net realized capital gains (losses) on investments		(8,207	)		58,076			(2,590	)		(25,046	)
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(145	)		(3,259	)		728			135
End of period		2,679,928			(167,240	)		1,222,446			566,545
Net change in unrealized appreciation/depreciation of investments		2,680,073			(163,981	)		1,221,718			566,410
Net realized and unrealized capital gains (losses) on investments		2,671,866			(105,905	)		1,219,128			541,364
Increase (decrease) in net assets from operations	$	3,012,862		$	88,122		$	1,195,053		$	573,835

See accompanying notes.

216

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	American Funds – International Fund Subaccount			GE Investments Total Return Fund Subaccount			MTB Managed Allocation Fund- Moderate Growth II Subaccount			BlackRock Basic Value V.I. Subaccount
Net investment income (loss)
Income:
Dividends	$	120,173		$	88,213		$	3,988		$	462,808
Expenses:
Administrative, mortality and expense risk charge		60,479			53,619			7,984			423,905
Net investment income (loss)		59,694			34,594			(3,996	)		38,903
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—			—			—
Proceeds from sales		898,914			166,127			235,899			4,826,243
Cost of investments sold		916,529			166,134			285,040			4,671,725
Net realized capital gains (losses) on investments		(17,615	)		(7	)		(49,141	)		154,518
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		415			(224	)		(56,715	)		(7,696,988	)
End of period		499,360			471,238			43,146			(4,790,889	)
Net change in unrealized appreciation/depreciation of investments		498,945			471,462			99,861			2,906,099
Net realized and unrealized capital gains (losses) on investments		481,330			471,455			50,720			3,060,617
Increase (decrease) in net assets from operations	$	541,024		$	506,049		$	46,724		$	3,099,520

See accompanying notes.

217

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	BlackRock High Income V.I. Subaccount			BlackRock Global Allocation V.I. Subaccount			Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount
Net investment income (loss)
Income:
Dividends	$	674,422		$	304,131		$	21,236	$	382
Expenses:
Administrative, mortality and expense risk charge		124,594			375,477			5,447		2,887
Net investment income (loss)		549,828			(71,346	)		15,789		(2,505	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			138,437			—		—
Proceeds from sales		3,058,419			4,478,152			82,782		42,812
Cost of investments sold		3,446,383			4,436,276			80,964		63,345
Net realized capital gains (losses) on investments		(387,964	)		180,313			1,818		(20,533	)
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		(131,118	)		(419,101	)		5,301		(13,466	)
End of period		848,468			1,612,357			40,995		36,922
Net change in unrealized appreciation/depreciation of investments		979,586			2,031,458			35,694		50,388
Net realized and unrealized capital gains (losses) on investments		591,622			2,211,771			37,512		29,855
Increase (decrease) in net assets from operations	$	1,141,450		$	2,140,425		$	53,301	$	27,350

See accompanying notes.

218

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Huntington VA Income Equity Subaccount			Huntington VA International Equity Subaccount		Huntington VA Macro 100 Subaccount			Huntington VA Mid Corp America Subaccount
Net investment income (loss)
Income:
Dividends	$	2,346		$	18,272	$	592		$	2,632
Expenses:
Administrative, mortality and expense risk charge		1,000			17,587		712			4,583
Net investment income (loss)		1,346			685		(120	)		(1,951	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—		—			—
Proceeds from sales		10,324			190,163		8,916			79,751
Cost of investments sold		12,337			145,604		9,007			69,972
Net realized capital gains (losses) on investments		(2,013	)		44,559		(91	)		9,779
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		7,569			113,057		22			10,256
End of period		17,735			245,151		10,030			75,861
Net change in unrealized appreciation/depreciation of investments		10,166			132,094		10,008			65,605
Net realized and unrealized capital gains (losses) on investments		8,153			176,653		9,917			75,384
Increase (decrease) in net assets from operations	$	9,499		$	177,338	$	9,797		$	73,433

See accompanying notes.

219

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Huntington VA Mortgage Securities Subaccount		Huntington VA New Economy Subaccount			Huntington VA Real Strategies Subaccount			Huntington VA Rotating Markets Subaccount
Net investment income (loss)
Income:
Dividends	$	20,515	$	149		$	1,069		$	5,091
Expenses:
Administrative, mortality and expense risk charge		11,377		2,169			5,899			4,869
Net investment income (loss)		9,138		(2,020	)		(4,830	)		222
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—		—			—			—
Proceeds from sales		218,149		47,244			86,687			56,996
Cost of investments sold		209,171		44,796			88,039			47,981
Net realized capital gains (losses) on investments		8,978		2,448			(1,352	)		9,015
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		13,262		6,393			4,040			11,739
End of period		16,383		29,157			113,421			33,809
Net change in unrealized appreciation/depreciation of investments		3,121		22,764			109,381			22,070
Net realized and unrealized capital gains (losses) on investments		12,099		25,212			108,029			31,085
Increase (decrease) in net assets from operations	$	21,237	$	23,192		$	103,199		$	31,307

See accompanying notes.

220

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations

Year Ended December 31, 2010

	Huntington VA Situs Subaccount			Huntington VA Balanced Allocation Subaccount
Net investment income (loss)
Income:
Dividends	$	5,087		$	13,404
Expenses:
Administrative, mortality and expense risk charge		14,855			147,161
Net investment income (loss)		(9,768	)		(133,757	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—
Proceeds from sales		178,645			256,139
Cost of investments sold		164,279			203,180
Net realized capital gains (losses) on investments		14,366			52,959
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		55,606			187,528
End of period		374,905			1,378,874
Net change in unrealized appreciation/depreciation of investments		319,299			1,191,346
Net realized and unrealized capital gains (losses) on investments		333,665			1,244,305
Increase (decrease) in net assets from operations	$	323,897		$	1,110,548

See accompanying notes.

221

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Asset Allocation - Growth VP Subaccount						Transamerica Asset Allocation - Conservative VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(1,626,926	)	$	3,609,846		$	10,807,930		$	14,144,227
Net realized capital gains (losses) on investments		(38,975,058	)		(13,336,197	)		(14,669,664	)		(25,877,632	)
Net change in unrealized appreciation/depreciation of investments		83,712,581			84,659,610			48,868,379			117,719,408
Increase (decrease) in net assets from operations		43,110,597			74,933,259			45,006,645			105,986,003
Contract transactions
Net contract purchase payments		15,659,674			12,863,074			82,042,683			67,917,476
Transfer payments from (to) other subaccounts or general account		(2,326,424	)		1,596,336			46,250,709			30,023,631
Contract terminations, withdrawals, and other deductions		(26,224,893	)		(15,583,444	)		(68,201,378	)		(40,215,276	)
Contract maintenance charges		(1,896,866	)		(1,718,172	)		(3,401,383	)		(2,532,665	)
Increase (decrease) in net assets from contract transactions		(14,788,509	)		(2,842,206	)		56,690,631			55,193,166
Net increase (decrease) in net assets		28,322,088			72,091,053			101,697,276			161,179,169
Net assets:
Beginning of the period		356,027,919			283,936,866			561,519,294			400,340,125
End of the period	$	384,350,007		$	356,027,919		$	663,216,570		$	561,519,294

See accompanying notes.

222

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Asset Allocation - Moderate VP Subaccount						Transamerica Asset Allocation - Moderate Growth VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	18,300,939		$	28,039,390		$	10,562,272		$	25,016,715
Net realized capital gains (losses) on investments		(31,538,006	)		11,369,589			(51,524,231	)		23,838,560
Net change in unrealized appreciation/depreciation of investments		116,516,534			179,344,031			218,333,261			274,581,677
Increase (decrease) in net assets from operations		103,279,467			218,753,010			177,371,302			323,436,952
Contract transactions
Net contract purchase payments		130,158,299			111,714,879			126,088,781			195,857,251
Transfer payments from (to) other subaccounts or general account		20,894,116			70,769,435			(5,096,764	)		63,639,969
Contract terminations, withdrawals, and other deductions		(100,984,955	)		(69,327,162	)		(109,602,869	)		(71,089,416	)
Contract maintenance charges		(7,403,694	)		(5,563,908	)		(11,790,432	)		(8,834,278	)
Increase (decrease) in net assets from contract transactions		42,663,766			107,593,244			(401,284	)		179,573,526
Net increase (decrease) in net assets		145,943,233			326,346,254			176,970,018			503,010,478
Net assets:
Beginning of the period		1,182,888,651			856,542,397			1,671,991,913			1,168,981,435
End of the period	$	1,328,831,884		$	1,182,888,651		$	1,848,961,931		$	1,671,991,913

See accompanying notes.

223

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica WMC Diversified Growth VP Subaccount						Transamerica MFS International Equity VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(1,541,927	)	$	(808,132	)	$	(68,255	)	$	785,269
Net realized capital gains (losses) on investments		(7,916,405	)		(11,379,600	)		(6,442,124	)		(8,770,064	)
Net change in unrealized appreciation/depreciation of investments		35,382,549			50,608,911			11,744,843			24,908,078
Increase (decrease) in net assets from operations		25,924,217			38,421,179			5,234,464			16,923,283
Contract transactions
Net contract purchase payments		1,440,415			1,289,886			3,296,575			1,248,496
Transfer payments from (to) other subaccounts or general account		(771,388	)		(8,565,426	)		(417,934	)		(2,819,876	)
Contract terminations, withdrawals, and other deductions		(16,671,393	)		(11,568,893	)		(5,811,468	)		(4,505,518	)
Contract maintenance charges		(668,938	)		(713,347	)		(320,787	)		(331,490	)
Increase (decrease) in net assets from contract transactions		(16,671,304	)		(19,557,780	)		(3,253,614	)		(6,408,388	)
Net increase (decrease) in net assets		9,252,913			18,863,399			1,980,850			10,514,895
Net assets:
Beginning of the period		173,764,901			154,901,502			70,065,045			59,550,150
End of the period	$	183,017,814		$	173,764,901		$	72,045,895		$	70,065,045

See accompanying notes.

224

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Clarion Global Real Estate Securities VP Subaccount						Transamerica Diversified Equity VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	2,337,973		$	(587,085	)	$	(443,536	)	$	280,823
Net realized capital gains (losses) on investments		(9,162,392	)		(13,330,035	)		4,805,511			(3,907,938	)
Net change in unrealized appreciation/depreciation of investments		13,338,577			25,122,940			10,420,090			26,475,160
Increase (decrease) in net assets from operations		6,514,158			11,205,820			14,782,065			22,848,045
Contract transactions
Net contract purchase payments		4,517,495			948,165			3,313,487			1,358,365
Transfer payments from (to) other subaccounts or general account		323,503			562,168			19,397,025			60,752,394
Contract terminations, withdrawals, and other deductions		(4,678,022	)		(2,700,514	)		(8,959,824	)		(4,765,397	)
Contract maintenance charges		(257,676	)		(218,608	)		(487,852	)		(289,374	)
Increase (decrease) in net assets from contract transactions		(94,700	)		(1,408,789	)		13,262,836			57,055,988
Net increase (decrease) in net assets		6,419,458			9,797,031			28,044,901			79,904,033
Net assets:
Beginning of the period		49,666,479			39,869,448			93,498,468			13,594,435
End of the period	$	56,085,937		$	49,666,479		$	121,543,369		$	93,498,468

See accompanying notes.

225

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Balanced VP Subaccount						Transamerica Jennison Growth VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(487,794	)	$	93,888		$	(1,772,516	)	$	(247,213	)
Net realized capital gains (losses) on investments		(527,451	)		(688,180	)		(141,571	)		(1,461,479	)
Net change in unrealized appreciation/depreciation of investments		11,970,926			7,355,223			14,807,919			8,200,871
Increase (decrease) in net assets from operations		10,955,681			6,760,931			12,893,832			6,492,179
Contract transactions
Net contract purchase payments		6,952,392			6,517,414			3,970,198			590,759
Transfer payments from (to) other subaccounts or general account		17,536,660			4,839,969			158,401,281			4,028,708
Contract terminations, withdrawals, and other deductions		(4,277,894	)		(1,497,426	)		(10,959,803	)		(1,256,201	)
Contract maintenance charges		(338,454	)		(168,141	)		(478,039	)		(84,829	)
Increase (decrease) in net assets from contract transactions		19,872,704			9,691,816			150,933,637			3,278,437
Net increase (decrease) in net assets		30,828,385			16,452,747			163,827,469			9,770,616
Net assets:
Beginning of the period		37,876,212			21,423,465			25,367,528			15,596,912
End of the period	$	68,704,597		$	37,876,212		$	189,194,997		$	25,367,528

See accompanying notes.

226

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica JPMorgan Enhanced Index VP Subaccount						Transamerica AEGON High Yield Bond VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(110,186	)	$	512,812		$	12,754,912		$	5,568,885
Net realized capital gains (losses) on investments		(2,951,057	)		(4,163,452	)		(5,271,568	)		(5,390,587	)
Net change in unrealized appreciation/depreciation of investments		13,273,481			21,918,722			2,589,935			27,696,296
Increase (decrease) in net assets from operations		10,212,238			18,268,082			10,073,279			27,874,594
Contract transactions
Net contract purchase payments		899,245			166,422			6,033,128			2,779,151
Transfer payments from (to) other subaccounts or general account		(3,870,023	)		6,701,079			(1,771,951	)		21,603,747
Contract terminations, withdrawals, and other deductions		(6,534,643	)		(4,744,827	)		(8,934,159	)		(7,037,472	)
Contract maintenance charges		(410,280	)		(390,719	)		(464,863	)		(366,114	)
Increase (decrease) in net assets from contract transactions		(9,915,701	)		1,731,955			(5,137,845	)		16,979,312
Net increase (decrease) in net assets		296,537			20,000,037			4,935,434			44,853,906
Net assets:
Beginning of the period		85,362,534			65,362,497			97,606,766			52,752,860
End of the period	$	85,659,071		$	85,362,534		$	102,542,200		$	97,606,766

See accompanying notes.

227

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Growth Opportunities VP Subaccount						Transamerica BlackRock Large Cap Value VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(623,247	)	$	(409,672	)	$	(1,906,776	)	$	(227,081	)
Net realized capital gains (losses) on investments		(2,493,056	)		(3,816,171	)		(18,749,764	)		(11,027,804	)
Net change in unrealized appreciation/depreciation of investments		16,443,404			15,180,537			38,572,737			20,084,536
Increase (decrease) in net assets from operations		13,327,101			10,954,694			17,916,197			8,829,651
Contract transactions
Net contract purchase payments		1,931,703			989,660			9,651,419			2,218,404
Transfer payments from (to) other subaccounts or general account		(781,388	)		(657,558	)		211,545,304			134,885,695
Contract terminations, withdrawals, and other deductions		(3,523,843	)		(2,830,242	)		(31,055,829	)		(5,214,017	)
Contract maintenance charges		(219,591	)		(205,826	)		(1,279,196	)		(355,754	)
Increase (decrease) in net assets from contract transactions		(2,593,119	)		(2,703,966	)		188,861,698			131,534,328
Net increase (decrease) in net assets		10,733,982			8,250,728			206,777,895			140,363,979
Net assets:
Beginning of the period		41,891,360			33,640,632			197,986,732			57,622,753
End of the period	$	52,625,342		$	41,891,360		$	404,764,627		$	197,986,732

See accompanying notes.

228

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica PIMCO Total Return VP Subaccount						Transamerica Focus VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	12,570,498		$	15,863,298		$	(453,487	)	$	728,998
Net realized capital gains (losses) on investments		5,695,352			10,699,336			(2,578,212	)		(4,056,396	)
Net change in unrealized appreciation/depreciation of investments		4,171,492			14,210,628			20,406,125			19,581,375
Increase (decrease) in net assets from operations		22,437,342			40,773,262			17,374,426			16,253,977
Contract transactions
Net contract purchase payments		80,861,537			37,035,262			760,990			483,935
Transfer payments from (to) other subaccounts or general account		46,518,716			114,258,188			(1,628,866	)		(6,779,631	)
Contract terminations, withdrawals, and other deductions		(44,235,949	)		(28,010,230	)		(6,353,928	)		(5,072,062	)
Contract maintenance charges		(2,458,339	)		(1,563,055	)		(369,609	)		(399,669	)
Increase (decrease) in net assets from contract transactions		80,685,965			121,720,165			(7,591,413	)		(11,767,427	)
Net increase (decrease) in net assets		103,123,307			162,493,427			9,783,013			4,486,550
Net assets:
Beginning of the period		394,940,745			232,447,318			75,433,842			70,947,292
End of the period	$	498,064,052		$	394,940,745		$	85,216,855		$	75,433,842

See accompanying notes.

229

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica AllianceBernstein Dynamic Allocation VP Subaccount						Transamerica U.S. Government Securities VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	1,298,991		$	645,657		$	3,187,841		$	1,269,774
Net realized capital gains (losses) on investments		(2,167,760	)		(12,549,001	)		8,222,342			2,654,130
Net change in unrealized appreciation/depreciation of investments		3,441,551			19,012,726			(6,357,151	)		386,536
Increase (decrease) in net assets from operations		2,572,782			7,109,382			5,053,032			4,310,440
Contract transactions
Net contract purchase payments		10,169,600			650,923			144,399,823			40,703,014
Transfer payments from (to) other subaccounts or general account		2,602,907			1,643,457			(102,089,748	)		(15,084,789	)
Contract terminations, withdrawals, and other deductions		(3,164,023	)		(2,578,014	)		(20,717,926	)		(16,460,578	)
Contract maintenance charges		(160,197	)		(139,219	)		(853,270	)		(694,826	)
Increase (decrease) in net assets from contract transactions		9,448,287			(422,853	)		20,738,879			8,462,821
Net increase (decrease) in net assets		12,021,069			6,686,529			25,791,911			12,773,261
Net assets:
Beginning of the period		33,340,808			26,654,279			169,958,982			157,185,721
End of the period	$	45,361,877		$	33,340,808		$	195,750,893		$	169,958,982

See accompanying notes.

230

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount						Transamerica T. Rowe Price Small Cap VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	1,345,747		$	754,107		$	(1,064,654	)	$	(848,221	)
Net realized capital gains (losses) on investments		6,244,597			3,505,865			(5,176,155	)		(8,913,038	)
Net change in unrealized appreciation/depreciation of investments		(4,909,263	)		(1,319,791	)		27,544,324			28,212,640
Increase (decrease) in net assets from operations		2,681,081			2,940,181			21,303,515			18,451,381
Contract transactions
Net contract purchase payments		—			—			5,009,535			1,546,110
Transfer payments from (to) other subaccounts or general account		(24,616,637	)		(48,727,831	)		3,648,298			(2,626,941	)
Contract terminations, withdrawals, and other deductions		(7,200,722	)		(8,365,234	)		(6,099,685	)		(3,686,514	)
Contract maintenance charges		(623,870	)		(1,016,597	)		(364,903	)		(320,278	)
Increase (decrease) in net assets from contract transactions		(32,441,229	)		(58,109,662	)		2,193,245			(5,087,623	)
Net increase (decrease) in net assets		(29,760,148	)		(55,169,481	)		23,496,760			13,363,758
Net assets:
Beginning of the period		86,072,017			141,241,498			68,613,378			55,249,620
End of the period	$	56,311,869		$	86,072,017		$	92,110,138		$	68,613,378

See accompanying notes.

231

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Morgan Stanley Active International Allocation VP Subaccount						Transamerica Multi Managed Large Cap Core VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	534,258		$	(1,276,370	)	$	(1,244,039	)	$	(615,047	)
Net realized capital gains (losses) on investments		(3,013,009	)		(4,428,989	)		(209,641	)		(8,445,783	)
Net change in unrealized appreciation/depreciation of investments		8,480,532			26,247,189			26,981,669			54,968,047
Increase (decrease) in net assets from operations		6,001,781			20,541,830			25,527,989			45,907,217
Contract transactions
Net contract purchase payments		2,227,771			1,276,879			2,358,755			983,372
Transfer payments from (to) other subaccounts or general account		(4,183,763	)		(3,417,617	)		(5,545,105	)		61,112,270
Contract terminations, withdrawals, and other deductions		(10,479,172	)		(7,255,777	)		(16,778,455	)		(10,621,765	)
Contract maintenance charges		(410,606	)		(431,685	)		(575,922	)		(422,870	)
Increase (decrease) in net assets from contract transactions		(12,845,770	)		(9,828,200	)		(20,540,727	)		51,051,007
Net increase (decrease) in net assets		(6,843,989	)		10,713,630			4,987,262			96,958,224
Net assets:
Beginning of the period		112,404,738			101,691,108			162,435,410			65,477,186
End of the period	$	105,560,749		$	112,404,738		$	167,422,672		$	162,435,410

See accompanying notes.

232

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Money Market VP Subaccount						Transamerica Morgan Stanley Mid-Cap Growth VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(3,724,641	)	$	(4,457,594	)	$	(517,546	)	$	(363,762	)
Net realized capital gains (losses) on investments		—			—			2,415,963			365,726
Net change in unrealized appreciation/depreciation of investments		—			—			9,293,686			11,255,882
Increase (decrease) in net assets from operations		(3,724,641	)		(4,457,594	)		11,192,103			11,257,846
Contract transactions
Net contract purchase payments		84,171,823			60,086,875			3,942,750			1,293,013
Transfer payments from (to) other subaccounts or general account		(30,559,505	)		(97,259,494	)		5,060,780			2,160,167
Contract terminations, withdrawals, and other deductions		(71,198,618	)		(83,340,207	)		(3,275,945	)		(1,612,613	)
Contract maintenance charges		(1,448,440	)		(1,796,100	)		(194,329	)		(129,920	)
Increase (decrease) in net assets from contract transactions		(19,034,740	)		(122,308,926	)		5,533,256			1,710,647
Net increase (decrease) in net assets		(22,759,381	)		(126,766,520	)		16,725,359			12,968,493
Net assets:
Beginning of the period		263,342,710			390,109,230			33,153,233			20,184,740
End of the period	$	240,583,329		$	263,342,710		$	49,878,592		$	33,153,233

See accompanying notes.

233

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica International Moderate Growth VP - SC Subaccount						Transamerica Small/Mid Cap Value VP Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	1,603,843		$	1,237,653		$	(987,915	)	$	2,090,809
Net realized capital gains (losses) on investments		(3,483,422	)		(5,930,911	)		11,967,004			8,794,482
Net change in unrealized appreciation/depreciation of investments		14,785,201			31,183,410			26,552,628			30,715,698
Increase (decrease) in net assets from operations		12,905,622			26,490,152			37,531,717			41,600,989
Contract transactions
Net contract purchase payments		22,966,016			36,268,791			7,417,802			1,823,721
Transfer payments from (to) other subaccounts or general account		3,476,085			3,755,346			(1,666,002	)		(5,732,086	)
Contract terminations, withdrawals, and other deductions		(7,914,377	)		(4,635,155	)		(12,899,501	)		(11,225,130	)
Contract maintenance charges		(1,270,787	)		(792,907	)		(420,797	)		(376,379	)
Increase (decrease) in net assets from contract transactions		17,256,937			34,596,075			(7,568,498	)		(15,509,874	)
Net increase (decrease) in net assets		30,162,559			61,086,227			29,963,219			26,091,115
Net assets:
Beginning of the period		139,691,778			78,605,551			137,826,521			111,735,406
End of the period	$	169,854,337		$	139,691,778		$	167,789,740		$	137,826,521

See accompanying notes.

234

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Index 50 VP - SC Subaccount						Transamerica Index 75 VP - SC Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(166,632	)	$	(257,770	)	$	(221,596	)	$	(505,628	)
Net realized capital gains (losses) on investments		2,226,061			(15,120	)		1,478,949			(453,951	)
Net change in unrealized appreciation/depreciation of investments		4,089,179			4,562,410			15,734,219			14,650,040
Increase (decrease) in net assets from operations		6,148,608			4,289,520			16,991,572			13,690,461
Contract transactions
Net contract purchase payments		32,009,009			22,468,711			64,283,538			55,472,202
Transfer payments from (to) other subaccounts or general account		(203,951	)		17,343,015			10,450,054			12,723,785
Contract terminations, withdrawals, and other deductions		(1,785,205	)		(256,188	)		(3,831,448	)		(1,339,721	)
Contract maintenance charges		(432,729	)		(56,431	)		(1,087,627	)		(166,351	)
Increase (decrease) in net assets from contract transactions		29,587,124			39,499,107			69,814,517			66,689,915
Net increase (decrease) in net assets		35,735,732			43,788,627			86,806,089			80,380,376
Net assets:
Beginning of the period		49,277,110			5,488,483			95,152,421			14,772,045
End of the period	$	85,012,842		$	49,277,110		$	181,958,510		$	95,152,421

See accompanying notes.

235

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Efficient Markets VP - SC Subaccount						Transamerica BlackRock Global Allocation VP -  SC Subaccount
	2010			2009			2010			2009(1)
Operations
Net investment income (loss)	$	(115,210	)	$	(50,566	)	$	(1,720,473	)	$	(244,473	)
Net realized capital gains (losses) on investments		501,531			48,851			402,593			102,342
Net change in unrealized appreciation/depreciation of investments		1,308,624			782,555			22,021,138			2,702,193
Increase (decrease) in net assets from operations		1,694,945			780,840			20,703,258			2,560,062
Contract transactions
Net contract purchase payments		10,237,549			7,104,833			171,859,455			42,507,822
Transfer payments from (to) other subaccounts or general account		1,573,103			880,480			55,721,437			24,203,139
Contract terminations, withdrawals, and other deductions		(255,400	)		(20,045	)		(5,178,772	)		(324,411	)
Contract maintenance charges		(102,185	)		(1,296	)		(1,264,766	)		(47,417	)
Increase (decrease) in net assets from contract transactions		11,453,067			7,963,972			221,137,354			66,339,133
Net increase (decrease) in net assets		13,148,012			8,744,812			241,840,612			68,899,195
Net assets:
Beginning of the period		8,798,793			53,981			68,899,195			—
End of the period	$	21,946,805		$	8,798,793		$	310,739,807		$	68,899,195

See accompanying notes.

236

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica BlackRock Tactical Allocation VP - SC Subaccount						Transamerica ProFunds UltraBear VP - SC OAM Subaccount
	2010			2009(1)			2010			2009(1)
Operations
Net investment income (loss)	$	(522,310	)	$	(57,347	)	$	(144,993	)	$	(1,839	)
Net realized capital gains (losses) on investments		659,868			42,286			(4,132,992	)		(153,873	)
Net change in unrealized appreciation/depreciation of investments		5,971,350			662,568			(1,666,653	)		(47,504	)
Increase (decrease) in net assets from operations		6,108,908			647,507			(5,944,638	)		(203,216	)
Contract transactions
Net contract purchase payments		47,150,382			10,594,599			—			—
Transfer payments from (to) other subaccounts or general account		32,508,580			6,502,349			13,316,585			574,511
Contract terminations, withdrawals, and other deductions		(1,850,849	)		(40,198	)		(355,021	)		(11,342	)
Contract maintenance charges		(336,360	)		(21,085	)		(110,936	)		(274	)
Increase (decrease) in net assets from contract transactions		77,471,753			17,035,665			12,850,628			562,895
Net increase (decrease) in net assets		83,580,661			17,683,172			6,905,990			359,679
Net assets:
Beginning of the period		17,683,172			—			359,679			—
End of the period	$	101,263,833		$	17,683,172		$	7,265,669		$	359,679

See accompanying notes.

237

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Foxhall Global Growth VP -  SC Subaccount						Transamerica Foxhall Global Conservative VP -  SC Subaccount
	2010			2009(1)			2010			2009(1)
Operations
Net investment income (loss)	$	(94,570	)	$	(618	)	$	(85,125	)	$	(357	)
Net realized capital gains (losses) on investments		59,359			6			(53,725	)		(214	)
Net change in unrealized appreciation/depreciation of investments		960,967			7,561			(279,142	)		(1,612	)
Increase (decrease) in net assets from operations		925,756			6,949			(417,992	)		(2,183	)
Contract transactions
Net contract purchase payments		15,003,332			355,007			10,520,465			432,723
Transfer payments from (to) other subaccounts or general account		1,103,397			473,512			2,543,664			301,207
Contract terminations, withdrawals, and other deductions		(124,576	)		(606	)		(129,480	)		(600	)
Contract maintenance charges		(53,778	)		(47	)		(30,179	)		—
Increase (decrease) in net assets from contract transactions		15,928,375			827,866			12,904,470			733,330
Net increase (decrease) in net assets		16,854,131			834,815			12,486,478			731,147
Net assets:
Beginning of the period		834,815			—			731,147			—
End of the period	$	17,688,946		$	834,815		$	13,217,625		$	731,147

See accompanying notes.

238

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Foxhall Global Hard Asset VP -  SC Subaccount						Transamerica Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount
	2010			2009(1)			2010			2009(1)
Operations
Net investment income (loss)	$	(107,889	)	$	(1,273	)	$	(104,757	)	$	(1,706	)
Net realized capital gains (losses) on investments		(51,370	)		2			4,775			—
Net change in unrealized appreciation/depreciation of investments		938,171			(4,832	)		1,036,736			23,477
Increase (decrease) in net assets from operations		778,912			(6,103	)		936,754			21,771
Contract transactions
Net contract purchase payments		12,226,128			364,790			15,433,664			501,401
Transfer payments from (to) other subaccounts or general account		2,921,915			1,073,879			2,735,569			1,448,636
Contract terminations, withdrawals, and other deductions		(225,642	)		(779	)		(206,816	)		(781	)
Contract maintenance charges		(60,699	)		(56	)		(61,887	)		(145	)
Increase (decrease) in net assets from contract transactions		14,861,702			1,437,834			17,900,530			1,949,111
Net increase (decrease) in net assets		15,640,614			1,431,731			18,837,284			1,970,882
Net assets:
Beginning of the period		1,431,731			—			1,970,882			—
End of the period	$	17,072,345		$	1,431,731		$	20,808,166		$	1,970,882

See accompanying notes.

239

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Hanlon Growth VP - SC Subaccount						Transamerica Hanlon Growth and Income VP -  SC Subaccount
	2010			2009(1)			2010			2009(1)
Operations
Net investment income (loss)	$	(15,373	)	$	(429	)	$	(49,999	)	$	(172	)
Net realized capital gains (losses) on investments		(33,782	)		3			(127,042	)		1
Net change in unrealized appreciation/depreciation of investments		560,718			9,263			403,709			3,760
Increase (decrease) in net assets from operations		511,563			8,837			226,668			3,589
Contract transactions
Net contract purchase payments		12,901,135			321,799			16,293,974			253,024
Transfer payments from (to) other subaccounts or general account		785,136			274,922			(686,075	)		142,216
Contract terminations, withdrawals, and other deductions		(231,151	)		(600	)		(477,938	)		(600	)
Contract maintenance charges		(40,154	)		(11	)		(56,046	)		—
Increase (decrease) in net assets from contract transactions		13,414,966			596,110			15,073,915			394,640
Net increase (decrease) in net assets		13,926,529			604,947			15,300,583			398,229
Net assets:
Beginning of the period		604,947			—			398,229			—
End of the period	$	14,531,476		$	604,947		$	15,698,812		$	398,229

See accompanying notes.

240

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Hanlon Balanced VP - SC Subaccount						Transamerica Hanlon Managed Income VP -  SC Subaccount
	2010			2009(1)			2010			2009(1)
Operations
Net investment income (loss)	$	(148,076	)	$	(844	)	$	(849,215	)	$	(4,831	)
Net realized capital gains (losses) on investments		(22,798	)		31			300,601			—
Net change in unrealized appreciation/depreciation of investments		294,472			15,704			(809,981	)		13,224
Increase (decrease) in net assets from operations		123,598			14,891			(1,358,595	)		8,393
Contract transactions
Net contract purchase payments		27,485,189			563,849			122,340,942			4,590,389
Transfer payments from (to) other subaccounts or general account		2,165,191			588,644			7,252,962			4,990,379
Contract terminations, withdrawals, and other deductions		(214,985	)		(2,104	)		(2,875,024	)		(3,041	)
Contract maintenance charges		(86,050	)		(25	)		(421,079	)		(847	)
Increase (decrease) in net assets from contract transactions		29,349,345			1,150,364			126,297,801			9,576,880
Net increase (decrease) in net assets		29,472,943			1,165,255			124,939,206			9,585,273
Net assets:
Beginning of the period		1,165,255			—			9,585,273			—
End of the period	$	30,638,198		$	1,165,255		$	134,524,479		$	9,585,273

See accompanying notes.

241

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica Index 35 VP - SC Subaccount						Transamerica Index 100 VP - SC Subaccount
	2010			2009(1)			2010			2009(1)
Operations
Net investment income (loss)	$	(132,145	)	$	(136	)	$	(42,625	)	$	(58	)
Net realized capital gains (losses) on investments		57,670			5			4,287			7
Net change in unrealized appreciation/depreciation of investments		1,007,886			(855	)		740,562			872
Increase (decrease) in net assets from operations		933,411			(986	)		702,224			821
Contract transactions
Net contract purchase payments		18,411,436			197,709			4,526,266			106,776
Transfer payments from (to) other subaccounts or general account		4,098,954			10,563			1,934,505			190,846
Contract terminations, withdrawals, and other deductions		(215,072	)		(669	)		(28,553	)		(606	)
Contract maintenance charges		(35,666	)		—			(17,357	)		—
Increase (decrease) in net assets from contract transactions		22,259,652			207,603			6,414,861			297,016
Net increase (decrease) in net assets		23,193,063			206,617			7,117,085			297,837
Net assets:
Beginning of the period		206,617			—			297,837			—
End of the period	$	23,399,680		$	206,617		$	7,414,922		$	297,837

See accompanying notes.

242

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Transamerica JPMorgan Mid Cap Value VP - SC Subaccount						Invesco V.I. Basic Value Subaccount
	2010			2009(1)			2010			2009
Operations
Net investment income (loss)	$	46,402		$	(62	)	$	(265,499	)	$	(39,900	)
Net realized capital gains (losses) on investments		21,119			6			(4,819,228	)		(4,084,620	)
Net change in unrealized appreciation/depreciation of investments		701,067			1,282			6,157,371			11,786,801
Increase (decrease) in net assets from operations		768,588			1,226			1,072,644			7,662,281
Contract transactions
Net contract purchase payments		1,707,334			21,050			1,655,849			943,981
Transfer payments from (to) other subaccounts or general account		4,834,721			58,907			(1,365,125	)		535,822
Contract terminations, withdrawals, and other deductions		(160,306	)		(606	)		(2,447,835	)		(1,316,118	)
Contract maintenance charges		(23,799	)		(107	)		(132,892	)		(121,635	)
Increase (decrease) in net assets from contract transactions		6,357,950			79,244			(2,290,003	)		42,050
Net increase (decrease) in net assets		7,126,538			80,470			(1,217,359	)		7,704,331
Net assets:
Beginning of the period		80,470			—			25,112,242			17,407,911
End of the period	$	7,207,008		$	80,470		$	23,894,883		$	25,112,242

See accompanying notes.

243

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Invesco V.I. Capital Appreciation Subaccount						AllianceBernstein Growth & Income Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(56,434	)	$	(59,447	)	$	(563,786	)	$	778,807
Net realized capital gains (losses) on investments		(71,396	)		(166,819	)		(1,775,142	)		(4,093,528	)
Net change in unrealized appreciation/depreciation of investments		915,496			1,153,496			6,479,500			9,693,320
Increase (decrease) in net assets from operations		787,666			927,230			4,140,572			6,378,599
Contract transactions
Net contract purchase payments		627,015			413,893			1,459,053			816,780
Transfer payments from (to) other subaccounts or general account		(132,967	)		126,898			(1,016,048	)		(3,546,367	)
Contract terminations, withdrawals, and other deductions		(416,078	)		(247,572	)		(3,205,439	)		(2,741,150	)
Contract maintenance charges		(32,391	)		(31,257	)		(187,614	)		(205,095	)
Increase (decrease) in net assets from contract transactions		45,579			261,962			(2,950,048	)		(5,675,832	)
Net increase (decrease) in net assets		833,245			1,189,192			1,190,524			702,767
Net assets:
Beginning of the period		6,110,262			4,921,070			39,961,523			39,258,756
End of the period	$	6,943,507		$	6,110,262		$	41,152,047		$	39,961,523

See accompanying notes.

244

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	AllianceBernstein Large Cap Growth Subaccount						AllianceBernstein Balanced Wealth Strategy Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(249,604	)	$	(261,852	)	$	81,650		$	(37,411	)
Net realized capital gains (losses) on investments		639,001			75,754			175,798			245,105
Net change in unrealized appreciation/depreciation of investments		1,298,912			5,639,648			962,928			1,101,197
Increase (decrease) in net assets from operations		1,688,309			5,453,550			1,220,376			1,308,891
Contract transactions
Net contract purchase payments		1,616,884			547,104			5,599,111			7,032,520
Transfer payments from (to) other subaccounts or general account		631,465			563,824			1,980,323			1,589,609
Contract terminations, withdrawals, and other deductions		(1,996,868	)		(1,170,613	)		(454,299	)		(34,495	)
Contract maintenance charges		(96,963	)		(90,263	)		(96,506	)		(5,108	)
Increase (decrease) in net assets from contract transactions		154,518			(149,948	)		7,028,629			8,582,526
Net increase (decrease) in net assets		1,842,827			5,303,602			8,249,005			9,891,417
Net assets:
Beginning of the period		21,517,625			16,214,023			10,047,749			156,332
End of the period	$	23,360,452		$	21,517,625		$	18,296,754		$	10,047,749

See accompanying notes.

245

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Janus  Aspen-Enterprise Subaccount						Janus Aspen Perkins-Mid Cap Value Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(265,218	)	$	(246,755	)	$	(28,752	)	$	(31,194	)
Net realized capital gains (losses) on investments		(1,102,728	)		(3,437,000	)		111,718			152,242
Net change in unrealized appreciation/depreciation of investments		5,330,278			9,789,273			311,937			676,105
Increase (decrease) in net assets from operations		3,962,332			6,105,518			394,903			797,153
Contract transactions
Net contract purchase payments		881,180			548,494			29,375			245
Transfer payments from (to) other subaccounts or general account		(1,387,869	)		(1,985,749	)		(94,789	)		(111,937	)
Contract terminations, withdrawals, and other deductions		(2,023,438	)		(1,222,750	)		(248,520	)		(290,886	)
Contract maintenance charges		(86,852	)		(89,057	)		(10,638	)		(11,810	)
Increase (decrease) in net assets from contract transactions		(2,616,979	)		(2,749,062	)		(324,572	)		(414,388	)
Net increase (decrease) in net assets		1,345,353			3,356,456			70,331			382,765
Net assets:
Beginning of the period		18,789,785			15,433,329			3,137,832			2,755,067
End of the period	$	20,135,138		$	18,789,785		$	3,208,163		$	3,137,832

See accompanying notes.

246

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Janus Aspen-Worldwide Subaccount						MFS® New Discovery Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(356,662	)	$	(42,138	)	$	(437,082	)	$	(231,834	)
Net realized capital gains (losses) on investments		(1,973,090	)		(1,823,236	)		(665,903	)		(1,892,445	)
Net change in unrealized appreciation/depreciation of investments		6,921,602			10,082,852			10,536,450			9,436,711
Increase (decrease) in net assets from operations		4,591,850			8,217,478			9,433,465			7,312,432
Contract transactions
Net contract purchase payments		3,277,611			866,708			6,085,009			1,894,636
Transfer payments from (to) other subaccounts or general account		3,132,373			5,622,010			6,428,072			5,438,909
Contract terminations, withdrawals, and other deductions		(3,442,847	)		(1,844,917	)		(2,753,756	)		(914,302	)
Contract maintenance charges		(194,934	)		(152,870	)		(160,584	)		(81,526	)
Increase (decrease) in net assets from contract transactions		2,772,203			4,490,931			9,598,741			6,337,717
Net increase (decrease) in net assets		7,364,053			12,708,409			19,032,206			13,650,149
Net assets:
Beginning of the period		35,455,082			22,746,673			24,479,755			10,829,606
End of the period	$	42,819,135		$	35,455,082		$	43,511,961		$	24,479,755

See accompanying notes.

247

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	MFS® Total Return Subaccount						Fidelity VIP Contrafund® Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	695,852		$	1,106,808		$	(741,454	)	$	(433,140	)
Net realized capital gains (losses) on investments		(1,750,090	)		(2,773,728	)		(5,064,986	)		(8,127,689	)
Net change in unrealized appreciation/depreciation of investments		5,806,844			10,530,119			31,413,725			52,728,653
Increase (decrease) in net assets from operations		4,752,606			8,863,199			25,607,285			44,167,824
Contract transactions
Net contract purchase payments		3,928,846			1,654,940			12,951,994			4,569,182
Transfer payments from (to) other subaccounts or general account		(1,854,132	)		289,761			(320,081	)		(3,463,755	)
Contract terminations, withdrawals, and other deductions		(5,786,728	)		(3,684,045	)		(15,173,580	)		(10,349,496	)
Contract maintenance charges		(315,949	)		(326,684	)		(887,069	)		(825,970	)
Increase (decrease) in net assets from contract transactions		(4,027,963	)		(2,066,028	)		(3,428,736	)		(10,070,039	)
Net increase (decrease) in net assets		724,643			6,797,171			22,178,549			34,097,785
Net assets:
Beginning of the period		63,388,306			56,591,135			174,641,929			140,544,144
End of the period	$	64,112,949		$	63,388,306		$	196,820,478		$	174,641,929

See accompanying notes.

248

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Fidelity VIP Equity-Income Subaccount						Fidelity VIP Growth Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	88,531		$	235,793		$	(366,362	)	$	(273,642	)
Net realized capital gains (losses) on investments		(2,440,759	)		(6,758,582	)		(659,955	)		(2,465,960	)
Net change in unrealized appreciation/depreciation of investments		8,231,823			16,492,202			6,531,735			7,695,987
Increase (decrease) in net assets from operations		5,879,595			9,969,413			5,505,418			4,956,385
Contract transactions
Net contract purchase payments		3,056,156			800,812			2,658,894			1,387,486
Transfer payments from (to) other subaccounts or general account		1,188,770			(3,745,297	)		2,348,251			(2,959,130	)
Contract terminations, withdrawals, and other deductions		(4,272,479	)		(2,699,003	)		(1,696,754	)		(1,595,123	)
Contract maintenance charges		(228,504	)		(225,965	)		(133,688	)		(121,690	)
Increase (decrease) in net assets from contract transactions		(256,057	)		(5,869,453	)		3,176,703			(3,288,457	)
Net increase (decrease) in net assets		5,623,538			4,099,960			8,682,121			1,667,928
Net assets:
Beginning of the period		45,516,351			41,416,391			24,205,981			22,538,053
End of the period	$	51,139,889		$	45,516,351		$	32,888,102		$	24,205,981

See accompanying notes.

249

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Fidelity VIP Growth Opportunities Subaccount						Fidelity VIP Mid Cap Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(26,870	)	$	(20,666	)	$	(2,720,237	)	$	(1,761,579	)
Net realized capital gains (losses) on investments		58,425			(37,750	)		579,588			(4,398,014	)
Net change in unrealized appreciation/depreciation of investments		329,348			678,655			50,560,623			61,108,742
Increase (decrease) in net assets from operations		360,903			620,239			48,419,974			54,949,149
Contract transactions
Net contract purchase payments		4,374			137,937			9,051,823			3,404,568
Transfer payments from (to) other subaccounts or general account		(126,767	)		(219,303	)		(1,772,596	)		(14,599,039	)
Contract terminations, withdrawals, and other deductions		(149,910	)		(183,504	)		(17,043,948	)		(13,697,805	)
Contract maintenance charges		(8,246	)		(9,345	)		(985,736	)		(943,751	)
Increase (decrease) in net assets from contract transactions		(280,549	)		(274,215	)		(10,750,457	)		(25,836,027	)
Net increase (decrease) in net assets		80,354			346,024			37,669,517			29,113,122
Net assets:
Beginning of the period		1,911,152			1,565,128			192,489,020			163,375,898
End of the period	$	1,991,506		$	1,911,152		$	230,158,537		$	192,489,020

See accompanying notes.

250

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Fidelity VIP Value Strategies Subaccount						Fidelity VIP Balanced Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(650,316	)	$	(481,931	)	$	87,055		$	110,163
Net realized capital gains (losses) on investments		(5,045,823	)		(11,832,370	)		617,655			(86,283	)
Net change in unrealized appreciation/depreciation of investments		17,859,919			31,873,157			3,178,688			3,704,000
Increase (decrease) in net assets from operations		12,163,780			19,558,856			3,883,398			3,727,880
Contract transactions
Net contract purchase payments		3,573,139			1,290,135			7,058,080			8,839,274
Transfer payments from (to) other subaccounts or general account		(1,134,078	)		(2,630,858	)		3,116,647			1,710,947
Contract terminations, withdrawals, and other deductions		(4,975,671	)		(3,046,848	)		(641,067	)		(444,993	)
Contract maintenance charges		(289,801	)		(253,767	)		(169,623	)		(38,679	)
Increase (decrease) in net assets from contract transactions		(2,826,411	)		(4,641,338	)		9,364,037			10,066,549
Net increase (decrease) in net assets		9,337,369			14,917,518			13,247,435			13,794,429
Net assets:
Beginning of the period		52,231,295			37,313,777			17,650,080			3,855,651
End of the period	$	61,568,664		$	52,231,295		$	30,897,515		$	17,650,080

See accompanying notes.

251

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Franklin Income Securities Subaccount						Mutual Shares Securities Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	1,874,865		$	1,029,028		$	23,835		$	35,964
Net realized capital gains (losses) on investments		(736,255	)		(1,026,834	)		37,691			(1,838,289	)
Net change in unrealized appreciation/depreciation of investments		3,144,096			5,450,016			1,215,517			3,210,284
Increase (decrease) in net assets from operations		4,282,706			5,452,210			1,277,043			1,407,959
Contract transactions
Net contract purchase payments		8,131,069			2,818,583			2,823,752			872,623
Transfer payments from (to) other subaccounts or general account		12,855,347			11,975,770			4,596,612			2,600,579
Contract terminations, withdrawals, and other deductions		(3,185,823	)		(1,806,780	)		(897,567	)		(818,854	)
Contract maintenance charges		(168,952	)		(69,391	)		(58,079	)		(30,471	)
Increase (decrease) in net assets from contract transactions		17,631,641			12,918,182			6,464,718			2,623,877
Net increase (decrease) in net assets		21,914,347			18,370,392			7,741,761			4,031,836
Net assets:
Beginning of the period		28,997,286			10,626,894			9,746,295			5,714,459
End of the period	$	50,911,633		$	28,997,286		$	17,488,056		$	9,746,295

See accompanying notes.

252

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Templeton Foreign Securities Subaccount						Franklin Templeton Founding Funds Allocation Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	115,019		$	212,271		$	461,776		$	389,205
Net realized capital gains (losses) on investments		(1,102,144	)		(3,496,217	)		680,143			322,210
Net change in unrealized appreciation/depreciation of investments		3,237,295			8,429,231			2,803,789			2,996,362
Increase (decrease) in net assets from operations		2,250,170			5,145,285			3,945,708			3,707,777
Contract transactions
Net contract purchase payments		5,184,140			2,165,559			18,920,233			17,449,387
Transfer payments from (to) other subaccounts or general account		5,509,148			11,826,491			6,935,756			4,190,318
Contract terminations, withdrawals, and other deductions		(3,158,999	)		(1,028,408	)		(2,051,171	)		(272,012	)
Contract maintenance charges		(177,323	)		(90,428	)		(290,879	)		(19,574	)
Increase (decrease) in net assets from contract transactions		7,356,966			12,873,214			23,513,939			21,348,119
Net increase (decrease) in net assets		9,607,136			18,018,499			27,459,647			25,055,896
Net assets:
Beginning of the period		30,890,820			12,872,321			25,548,689			492,793
End of the period	$	40,497,956		$	30,890,820		$	53,008,336		$	25,548,689

See accompanying notes.

253

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	American Funds – Asset Allocation Fund Subaccount						American Funds – Bond Fund Subaccount
	2010			2009(1)			2010			2009(1)
Operations
Net investment income (loss)	$	340,996		$	134		$	194,027		$	1,758
Net realized capital gains (losses) on investments		(8,207	)		5			58,076			(1	)
Net change in unrealized appreciation/depreciation of investments		2,680,073			(145	)		(163,981	)		(3,259	)
Increase (decrease) in net assets from operations		3,012,862			(6	)		88,122			(1,502	)
Contract transactions
Net contract purchase payments		27,383,122			491,485			7,437,120			439,892
Transfer payments from (to) other subaccounts or general account		8,480,857			252,721			3,239,458			63,493
Contract terminations, withdrawals, and other deductions		(263,206	)		(505	)		(238,349	)		(500	)
Contract maintenance charges		(109,150	)		—			(28,188	)		—
Increase (decrease) in net assets from contract transactions		35,491,623			743,701			10,410,041			502,885
Net increase (decrease) in net assets		38,504,485			743,695			10,498,163			501,383
Net assets:
Beginning of the period		743,695			—			501,383			—
End of the period	$	39,248,180		$	743,695		$	10,999,546		$	501,383

See accompanying notes.

254

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	American Funds – Growth Fund Subaccount						American Funds – Growth–Income Fund Subaccount
	2010			2009(1)			2010			2009(1)
Operations
Net investment income (loss)	$	(24,075	)	$	183		$	32,471		$	537
Net realized capital gains (losses) on investments		(2,590	)		44			(25,046	)		5
Net change in unrealized appreciation/depreciation of investments		1,221,718			728			566,410			135
Increase (decrease) in net assets from operations		1,195,053			955			573,835			677
Contract transactions
Net contract purchase payments		8,384,516			220,613			6,134,089			76,835
Transfer payments from (to) other subaccounts or general account		1,106,043			(230	)		380,734			3,183
Contract terminations, withdrawals, and other deductions		(165,947	)		(500	)		(134,306	)		(505	)
Contract maintenance charges		(29,986	)		—			(20,500	)		—
Increase (decrease) in net assets from contract transactions		9,294,626			219,883			6,360,017			79,513
Net increase (decrease) in net assets		10,489,679			220,838			6,933,852			80,190
Net assets:
Beginning of the period		220,838			—			80,190			—
End of the period	$	10,710,517		$	220,838		$	7,014,042		$	80,190

See accompanying notes.

255

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	American Funds – International Fund Subaccount						GE Investments Total Return Fund Subaccount
	2010			2009(1)			2010			2009(1)
Operations
Net investment income (loss)	$	59,694		$	278		$	34,594		$	1,000
Net realized capital gains (losses) on investments		(17,615	)		4			(7	)		181
Net change in unrealized appreciation/depreciation of investments		498,945			415			471,462			(224	)
Increase (decrease) in net assets from operations		541,024			697			506,049			957
Contract transactions
Net contract purchase payments		6,629,997			60,563			5,443,702			155,588
Transfer payments from (to) other subaccounts or general account		881,879			17,037			1,799,459			2,252
Contract terminations, withdrawals, and other deductions		(118,576	)		(505	)		(69,879	)		(505	)
Contract maintenance charges		(23,405	)		—			(21,146	)		—
Increase (decrease) in net assets from contract transactions		7,369,895			77,095			7,152,136			157,335
Net increase (decrease) in net assets		7,910,919			77,792			7,658,185			158,292
Net assets:
Beginning of the period		77,792			—			158,292			—
End of the period	$	7,988,711		$	77,792		$	7,816,477		$	158,292

See accompanying notes.

256

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	MTB Managed Allocation Fund-Moderate Growth II Subaccount						BlackRock Basic Value V.I. Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(3,996	)	$	(9,262	)	$	38,903		$	167,375
Net realized capital gains (losses) on investments		(49,141	)		(100,519	)		154,518			(1,004,814	)
Net change in unrealized appreciation/depreciation of investments		99,861			250,577			2,906,099			7,933,117
Increase (decrease) in net assets from operations		46,724			140,796			3,099,520			7,095,678
Contract transactions
Net contract purchase payments		—			34,710			1,638			43,262
Transfer payments from (to) other subaccounts or general account		4,266			(152,292	)		(487,410	)		(1,337,917	)
Contract terminations, withdrawals, and other deductions		(195,994	)		(38,689	)		(2,785,548	)		(2,196,268	)
Contract maintenance charges		(2,072	)		(2,839	)		(114,686	)		(122,492	)
Increase (decrease) in net assets from contract transactions		(193,800	)		(159,110	)		(3,386,006	)		(3,613,415	)
Net increase (decrease) in net assets		(147,076	)		(18,314	)		(286,486	)		3,482,263
Net assets:
Beginning of the period		741,634			759,948			30,704,585			27,222,322
End of the period	$	594,558		$	741,634		$	30,418,099		$	30,704,585

See accompanying notes.

257

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	BlackRock High Income V.I. Subaccount						BlackRock Global Allocation V.I. Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	549,828		$	620,518		$	(71,346	)	$	119,299
Net realized capital gains (losses) on investments		(387,964	)		(821,260	)		180,313			(323,678	)
Net change in unrealized appreciation/ depreciation of investments		979,586			3,625,383			2,031,458			4,704,904
Increase (decrease) in net assets from operations		1,141,450			3,424,641			2,140,425			4,500,525
Contract transactions
Net contract purchase payments		24,020			14,823			58,089			135,155
Transfer payments from (to) other subaccounts or general account		889,310			(266,585	)		(109,610	)		453,078
Contract terminations, withdrawals, and other deductions		(1,553,934	)		(500,235	)		(2,639,363	)		(1,416,840	)
Contract maintenance charges		(27,924	)		(26,245	)		(85,642	)		(85,087	)
Increase (decrease) in net assets from contract transactions		(668,528	)		(778,242	)		(2,776,526	)		(913,694	)
Net increase (decrease) in net assets		472,922			2,646,399			(636,101	)		3,586,831
Net assets:
Beginning of the period		9,048,158			6,401,759			27,612,347			24,025,516
End of the period	$	9,521,080		$	9,048,158		$	26,976,246		$	27,612,347

See accompanying notes.

258

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Huntington VA Dividend Capture Subaccount						Huntington VA Growth Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	15,789		$	(1,092	)	$	(2,505	)	$	(1,213	)
Net realized capital gains (losses) on investments		1,818			(1,593	)		(20,533	)		(11,088	)
Net change in unrealized appreciation/depreciation of investments		35,694			23,444			50,388			23,613
Increase (decrease) in net assets from operations		53,301			20,759			27,350			11,312
Contract transactions
Net contract purchase payments		388,023			69,280			179,511			47,488
Transfer payments from (to) other subaccounts or general account		28,901			19,868			27,001			(5,119	)
Contract terminations, withdrawals, and other deductions		(16,107	)		(1,300	)		(22,109	)		(2,484	)
Contract maintenance charges		(3,259	)		(304	)		(1,351	)		(342	)
Increase (decrease) in net assets from contract transactions		397,558			87,544			183,052			39,543
Net increase (decrease) in net assets		450,859			108,303			210,402			50,855
Net assets:
Beginning of the period		140,072			31,769			108,693			57,838
End of the period	$	590,931		$	140,072		$	319,095		$	108,693

See accompanying notes.

259

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Huntington VA Income Equity Subaccount						Huntington VA International Equity Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	1,346		$	(451	)	$	685		$	(5,636	)
Net realized capital gains (losses) on investments		(2,013	)		(2,980	)		44,559			(54,966	)
Net change in unrealized appreciation/depreciation of investments		10,166			14,880			132,094			188,558
Increase (decrease) in net assets from operations		9,499			11,449			177,338			127,956
Contract transactions
Net contract purchase payments		22,033			40,724			745,595			346,985
Transfer payments from (to) other subaccounts or general account		(371	)		552			475,345			1,669
Contract terminations, withdrawals, and other deductions		(2,588	)		(1,350	)		(66,607	)		(12,346	)
Contract maintenance charges		(630	)		(99	)		(8,567	)		(1,612	)
Increase (decrease) in net assets from contract transactions		18,444			39,827			1,145,766			334,696
Net increase (decrease) in net assets		27,943			51,276			1,323,104			462,652
Net assets:
Beginning of the period		63,043			11,767			633,019			170,367
End of the period	$	90,986		$	63,043		$	1,956,123		$	633,019

See accompanying notes.

260

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Huntington VA Macro 100 Subaccount						Huntington VA Mid Corp America Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(120	)	$	(2	)	$	(1,951	)	$	(839	)
Net realized capital gains (losses) on investments		(91	)		—			9,779			(1,882	)
Net change in unrealized appreciation/depreciation of investments		10,008			22			65,605			22,575
Increase (decrease) in net assets from operations		9,797			20			73,433			19,854
Contract transactions
Net contract purchase payments		77,616			2,500			314,488			120,320
Transfer payments from (to) other subaccounts or general account		20,057			1			(15,620	)		4,999
Contract terminations, withdrawals, and other deductions		(454	)		—			(7,900	)		(1,120	)
Contract maintenance charges		(409	)		—			(2,824	)		(231	)
Increase (decrease) in net assets from contract transactions		96,810			2,501			288,144			123,968
Net increase (decrease) in net assets		106,607			2,521			361,577			143,822
Net assets:
Beginning of the period		2,521			—			163,727			19,905
End of the period	$	109,128		$	2,521		$	525,304		$	163,727

See accompanying notes.

261

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Huntington VA Mortgage Securities Subaccount						Huntington VA New Economy Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	9,138		$	(6,263	)	$	(2,020	)	$	(886	)
Net realized capital gains (losses) on investments		8,978			(9,321	)		2,448			(16,974	)
Net change in unrealized appreciation/depreciation of investments		3,121			34,296			22,764			34,879
Increase (decrease) in net assets from operations		21,237			18,712			23,192			17,019
Contract transactions
Net contract purchase payments		234,823			305,244			75,365			58,139
Transfer payments from (to) other subaccounts or general account		376,094			(68,715	)		13,689			15,515
Contract terminations, withdrawals, and other deductions		(61,779	)		(17,894	)		(5,123	)		(2,649	)
Contract maintenance charges		(4,239	)		(976	)		(728	)		(194	)
Increase (decrease) in net assets from contract transactions		544,899			217,659			83,203			70,811
Net increase (decrease) in net assets		566,136			236,371			106,395			87,830
Net assets:
Beginning of the period		556,724			320,353			114,689			26,859
End of the period	$	1,122,860		$	556,724		$	221,084		$	114,689

See accompanying notes.

262

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Huntington VA Real Strategies Subaccount						Huntington VA Rotating Markets Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(4,830	)	$	(1,267	)	$	222		$	(621	)
Net realized capital gains (losses) on investments		(1,352	)		(2,368	)		9,015			(3,948	)
Net change in unrealized appreciation/depreciation of investments		109,381			26,468			22,070			18,372
Increase (decrease) in net assets from operations		103,199			22,833			31,307			13,803
Contract transactions
Net contract purchase payments		364,667			118,460			412,982			30,978
Transfer payments from (to) other subaccounts or general account		18,673			31,967			79,008			21,592
Contract terminations, withdrawals, and other deductions		(8,771	)		(2,615	)		(6,167	)		(1,875	)
Contract maintenance charges		(3,187	)		(206	)		(2,549	)		(88	)
Increase (decrease) in net assets from contract transactions		371,382			147,606			483,274			50,607
Net increase (decrease) in net assets		474,581			170,439			514,581			64,410
Net assets:
Beginning of the period		195,817			25,378			73,042			8,632
End of the period	$	670,398		$	195,817		$	587,623		$	73,042

See accompanying notes.

263

Transamerica Life Insurance Company

Separate Account VA B

Statements of Changes in Net Assets

Years Ended December 31, 2010 and 2009, Except as Noted

	Huntington VA Situs Subaccount						Huntington VA Balanced Allocation Subaccount
	2010			2009			2010			2009
Operations
Net investment income (loss)	$	(9,768	)	$	(4,564	)	$	(133,757	)	$	(12,397	)
Net realized capital gains (losses) on investments		14,366			(24,500	)		52,959			3,838
Net change in unrealized appreciation/depreciation of investments		319,299			124,970			1,191,346			187,129
Increase (decrease) in net assets from operations		323,897			95,906			1,110,548			178,570
Contract transactions
Net contract purchase payments		732,296			279,323			10,063,278			2,555,328
Transfer payments from (to) other subaccounts or general account		247,864			20,854			2,589,129			893,693
Contract terminations, withdrawals, and other deductions		(37,497	)		(5,876	)		(255,434	)		(44,151	)
Contract maintenance charges		(7,625	)		(1,470	)		(94,199	)		(2,848	)
Increase (decrease) in net assets from contract transactions		935,038			292,831			12,302,774			3,402,022
Net increase (decrease) in net assets		1,258,935			388,737			13,413,322			3,580,592
Net assets:
Beginning of the period		559,420			170,683			3,608,610			28,018
End of the period	$	1,818,355		$	559,420		$	17,021,932		$	3,608,610

See accompanying notes.

264

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

1. Organization and Summary of Significant Accounting Policies

Organization

Separate Account VA B (the Separate Account) is a segregated investment account of Transamerica Life Insurance Company (TLIC), an indirect wholly owned subsidiary of AEGON N.V., a holding company organized under the laws of The Netherlands.

The Separate Account is registered with the Securities and Exchange Commission as a Unit Investment Trust pursuant to provisions of the Investment Company Act of 1940. The Separate Account consists of multiple investment subaccounts. Each subaccount invests exclusively in the corresponding portfolio of a Mutual Fund. Each Mutual Fund is registered as an open-end management investment company under the Investment Company Act of 1940, as amended. Activity in these specified investment subaccounts is available to contract owners of Transamerica Landmark Variable Annuity and Transamerica Freedom Variable Annuity.

The Transamerica U.S. Government Securities-Portfolio Asset Manager-Service Class (PAM Fund) and the Transamerica Profunds UltraBear-Open Allocation Method-Service Class (OAM Fund) are included in the Mutual Fund portfolio only to facilitate a contract owner purchase option.

Subaccount Investment by Mutual Fund:

Transamerica Series Trust-Initial Class

Transamerica Asset Allocation - Growth VP - Initial Class

Transamerica Asset Allocation - Conservative VP - Initial Class

Transamerica Asset Allocation - Moderate VP - Initial Class

Transamerica Asset Allocation - Moderate Growth VP - Initial Class

Transamerica WMC Diversified Growth VP - Initial Class

Transamerica MFS International Equity VP - Initial Class

Transamerica Clarion Global Real Estate Securities VP - Initial Class

Transamerica Small/Mid Cap Value VP - Initial Class

Transamerica Diversified Equity VP - Initial Class

Transamerica Balanced VP - Initial Class

Transamerica Jennison Growth VP - Initial Class

Transamerica JPMorgan Enhanced Index VP - Initial Class

Transamerica AEGON High Yield Bond VP - Initial Class

Transamerica Growth Opportunities VP - Initial Class

Transamerica BlackRock Large Cap Value VP - Initial Class

Transamerica PIMCO Total Return VP - Initial Class

Transamerica Focus VP - Initial Class

Transamerica AllianceBernstein Dynamic Allocation VP - Initial Class

Transamerica U.S. Government Securities VP - Initial Class

Transamerica T. Rowe Price Small Cap VP - Initial Class

Transamerica Morgan Stanley Active International Allocation VP - Initial Class

Transamerica Multi Managed Large Cap Core VP - Initial Class

Transamerica Money Market VP - Initial Class

Transamerica Morgan Stanley Mid-Cap Growth VP - Initial Class

265

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

1. Organization and Summary of Significant Accounting Policies (continued)

Subaccount Investment by Mutual Fund: (continued)

Transamerica Series Trust-Service Class

Transamerica Asset Allocation - Growth VP - Service Class

Transamerica Asset Allocation - Conservative VP - Service Class

Transamerica Asset Allocation - Moderate VP - Service Class

Transamerica Asset Allocation - Moderate Growth VP - Service Class

Transamerica WMC Diversified Growth VP - Service Class

Transamerica MFS International Equity VP - Service Class

Transamerica Clarion Global Real Estate Securities VP - Service Class

Transamerica Diversified Equity VP - Service Class

Transamerica Balanced VP - Service Class

Transamerica Jennison Growth VP - Service Class

Transamerica JPMorgan Enhanced Index VP - Service Class

Transamerica AEGON High Yield Bond VP - Service Class

Transamerica Growth Opportunities VP - Service Class

Transamerica BlackRock Large Cap Value VP - Service Class

Transamerica PIMCO Total Return VP - Service Class

Transamerica Focus VP - Service Class

Transamerica AllianceBernstein Dynamic Allocation VP - Service Class

Transamerica U.S. Government Securities VP - Service Class

Transamerica U.S. Government Securities VP - PAM Fund - Service Class

Transamerica T. Rowe Price Small Cap VP - Service Class

Transamerica Morgan Stanley Active International Allocation VP - Service Class

Transamerica Multi Managed Large Cap Core VP - Service Class

Transamerica Money Market VP - Service Class

Transamerica Morgan Stanley Mid-Cap Growth VP - Service Class

Transamerica International Moderate Growth VP - Service Class

Transamerica Small/Mid Cap Value VP - Service Class

Transamerica Index 50 VP - Service Class

Transamerica Index 75 VP - Service Class

Transamerica Efficient Markets VP - Service Class

Transamerica BlackRock Global Allocation VP - Service Class

Transamerica BlackRock Tactical Allocation VP - Service Class

Transamerica ProFunds UltraBear VP - Service Class OAM

Transamerica Foxhall Global Growth VP - Service Class

Transamerica Foxhall Global Conservative VP - Service Class

Transamerica Foxhall Global Hard Asset VP - Service Class

Transamerica Foxhall Emerging Markets/Pacific Rim VP - Service Class

Transamerica Hanlon Growth VP - Service Class

Transamerica Hanlon Growth and Income VP - Service Class

Transamerica Hanlon Balanced VP - Service Class

Transamerica Hanlon Managed Income VP - Service Class

266

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

1. Organization and Summary of Significant Accounting Policies (continued)

Subaccount Investment by Mutual Fund: (continued)

Transamerica Series Trust-Service Class

Transamerica Index 35 VP - Service Class

Transamerica Index 100 VP - Service Class

Transamerica JPMorgan Mid Cap Value VP - Service Class

AIM Variable Insurance Funds (Invesco Variable Insurance Funds) – Series II Shares

Invesco V.I. Basic Value Fund-Series II

Invesco V.I. Capital Appreciation Fund-Series II

AllianceBernstein Variable Products Series Fund, Inc.-Class B

AllianceBernstein Growth & Income Portfolio-Class B

AllianceBernstein Large Cap Growth Portfolio-Class B

AllianceBernstein Balanced Wealth Strategy Portfolio-Class B

Janus Aspen Series-Service Shares

Janus Aspen-Enterpriseh Portfolio-Service Shares

Janus Aspen Perkins-Mid Cap Value Portfolio-Service Shares

Janus Aspen-Worldwide-Service Shares

MFS^® Variable Insurance Trust – Service Class

MFS^® New Discovery Series-Service Class

MFS^® Total Return Series-Service Class

Fidelity^® Variable Insurance Products Fund – Service Class 2

Fidelity VIP Contrafund^® Portfolio-Service Class 2

Fidelity VIP Equity-Income Portfolio-Service Class 2

Fidelity VIP Growth Portfolio-Service Class 2

Fidelity VIP Growth Opportunities Portfolio - Service Class 2

Fidelity VIP Mid Cap Portfolio-Service Class 2

Fidelity VIP Value Strategies Portfolio-Service Class 2

Fidelity VIP Balanced Portfolio-Service Class 2

Franklin Templeton Variable Insurance Products Trust - Class 2

Franklin Income Securities Fund - Class 2

Mutual Shares Securities Fund - Class 2

Templeton Foreign Securities Fund - Class 2

Franklin Templeton Founding Funds Allocation - Class 4

American Funds Unsurance Series Trust - Class 2

American Funds - Asset Allocation Fund

American Funds - Bond Fund

American Funds - Growth Fund

American Funds - Growth–Income Fund

American Funds - International Fund

GE Investments Funds, Inc. - Class 3

GE Investments Total Return Fund

MTB Group of Funds

MTB Managed Allocation Fund-Moderate Growth II

267

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

1. Organization and Summary of Significant Accounting Policies (continued)

Subaccount Investment by Mutual Fund: (continued)

BlackRock Variable Series Funds, Inc.

BlackRock Basic Value V.I. Fund

BlackRock High Income V.I. Fund

BlackRock Global Allocation V.I. Fund

The Huntington Funds

Huntington VA Dividend Capture Fund

Huntington VA Growth Fund

Huntington VA Income Equity Fund

Huntington VA International Equity Fund

Huntington VA Macro 100 Fund

Huntington VA Mid Corp America Fund

Huntington VA Mortgage Securities Fund

Huntington VA New Economy Fund

Huntington VA Real Strategies Fund

Huntington VA Rotating Markets Fund

Huntington VA Situs Fund

Huntington VA Balanced Allocation Fund

Each period reported on reflects a full twelve month period except as follows:

Subaccount	Inception Date
Transamerica International Moderate Growth VP - Service Class	May 1, 2006
Franklin Income Securities Fund - Class 2	May 1, 2007
Mutual Shares Securities Fund - Class 2	May 1, 2007
Templeton Foreign Securities Fund - Class 2	May 1, 2007
Huntington VA Dividend Capture Fund	September 10, 2007
Huntington VA Growth Fund	September 10, 2007
Huntington VA Income Equity Fund	September 10, 2007
Huntington VA International Equity Fund	September 10, 2007
Huntington VA Macro 100 Fund	September 10, 2007
Huntington VA Mid Corp America Fund	September 10, 2007
Huntington VA Mortgage Securities Fund	September 10, 2007
Huntington VA New Economy Fund	September 10, 2007
Huntington VA Real Strategies Fund	September 10, 2007
Huntington VA Rotating Markets Fund	September 10, 2007
Huntington VA Situs Fund	September 10, 2007
Fidelity-VIP Balanced Portfolio-Service Class 2	May 1, 2008
Transamerica Index 50 VP - Service Class	May 1, 2008
Transamerica Index 75 VP - Service Class	May 1, 2008
Transamerica Efficient Markets VP - Service Class	November 10, 2008

268

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

1. Organization and Summary of Significant Accounting Policies (continued)

Each period reported on reflects a full twelve month period except as follows:

Subaccount	Inception Date
AllianceBernstein Balanced Wealth Strategy Portfolio-Class B	November 10, 2008
Franklin Templeton Founding Funds Allocation - Class 4	November 10, 2008
Huntington VA Balanced Allocation Fund	November 10, 2008
Transamerica BlackRock Global Allocation VP - Service Class	May 1, 2009
Transamerica BlackRock Tactical Allocation VP - Service Class	May 1, 2009
Transamerica ProFunds UltraBear VP - Service Class OAM	May 1, 2009
Transamerica Foxhall Global Growth VP - Service Class	November 19, 2009
Transamerica Foxhall Global Conservative VP - Service Class	November 19, 2009
Transamerica Foxhall Global Hard Asset VP - Service Class	November 19, 2009
Transamerica Foxhall Emerging Markets/Pacific Rim VP - Service Class	November 19, 2009
Transamerica Hanlon Growth VP - Service Class	November 19, 2009
Transamerica Hanlon Growth and Income VP - Service Class	November 19, 2009
Transamerica Hanlon Balanced VP - Service Class	November 19, 2009
Transamerica Hanlon Managed Income VP - Service Class	November 19, 2009
Transamerica Index 35 VP - Service Class	November 19, 2009
Transamerica Index 100 VP - Service Class	November 19, 2009
Transamerica JPMorgan Mid Cap Value VP - Service Class	November 19, 2009
American Funds – Asset Allocation Fund	November 19, 2009
American Funds – Bond Fund	November 19, 2009
American Funds – Growth Fund	November 19, 2009
American Funds – Growth–Income Fund	November 19, 2009
American Funds – International Fund	November 19, 2009
GE Investments Total Return Fund	November 19, 2009

The following Portfolio name changes were made effective during the fiscal year ended December 31, 2010:

Portfolio	Formerly
Transamerica WMC Diversified Growth VP	Transamerica Equity VP
Transamerica Diversified Equity VP	Transamerica Templeton Global VP
Transamerica Morgan Stanley Active International Allocation VP	Transamerica Van Kampen Active International Allocation VP
Transamerica Multi Managed Large Cap Core VP	Transamerica Van Kampen Large Cap Core VP
Transamerica Morgan Stanley Mid-Cap Growth VP	Transamerica Van Kampen Mid Cap Growth VP
Invesco V.I. Basic Value Fund-Series II	AIM V.I. Basic Value Fund-Series II
Invesco V.I. Capital Appreciation Fund-Series II	AIM V.I. Capital Appreciation Fund-Series II
Transamerica AllianceBernstein Dynamic Allocation VP	Transamerica Convertible Securities VP

269

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

1. Organization and Summary of Significant Accounting Policies (continued)

The following Portfolio mergers were made effective during the fiscal year ended December 31, 2010:

Portfolio	Formerly
Transamerica BlackRock Large Cap Value VP	Transamerica American Century Large Company Value VP
Transamerica BlackRock Large Cap Value VP	Transamerica T. Rowe Price Equity Income VP
Transamerica Jennison Growth VP	Transamerica Marsico Growth VP
Transamerica Jennison Growth VP	Transamerica T. Rowe Price Growth Stock VP
Transamerica Balanced VP	Transamerica Value Balanced VP
Transamerica Diversified Equity VP	Transamerica Science and Technology VP

Investments

Net purchase payments received by the Separate Account are invested in the portfolios of the Mutual Funds as selected by the contract owner. Investments are stated at the closing net asset values per share on December 31, 2010.

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

Dividend Income

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

Accounting Policy

On July 1, 2009, the FASB Accounting Standards Codification^TM (ASC or the Codification) was launched as the single source of authoritative nongovernmental accounting principles generally accepted in the United States (GAAP). Guidance in the Codification is organized by Topic, each representing a collection of related guidance (e.g., Financial Services—Insurance). Topics are further subdivided into Subtopics (e.g., Insurance Activities), and Sections (e.g., Recognition, Measurement, or Disclosure). All guidance contained in the Codification carries an equal level of authority. The Separate Account adopted guidance that establishes the Codification as the source of authoritative GAAP for the period ended September 30, 30, 2009. The adoption required updates to the Separate Account’s Account s financial statement disclosures, but did not impact the results of operations or financial position.

As of December 31, 2009 the Separate Account adopted ASC 855, Subsequent Events, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. See Note 9 to the financial statements for additional disclosure.

The financial statements included herein have been prepared in accordance with 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.

270

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

2. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2010 were as follows:

	Purchases		Sales
Transamerica Series Trust-Initial Class
Transamerica Asset Allocation - Growth VP - Initial Class	$	28,550,765	$	47,158,219
Transamerica Asset Allocation - Conservative VP - Initial Class		87,705,639		99,057,475
Transamerica Asset Allocation - Moderate VP - Initial Class		73,409,813		123,191,464
Transamerica Asset Allocation - Moderate Growth VP - Initial Class		65,911,673		127,839,107
Transamerica WMC Diversified Growth VP - Initial Class		7,867,496		26,252,474
Transamerica MFS International Equity VP - Initial Class		5,101,289		10,965,835
Transamerica Clarion Global Real Estate Securities VP - Initial Class		5,391,199		8,274,599
Transamerica Small/Mid Cap Value VP - Initial Class		2,145,100		20,232,937
Transamerica Diversified Equity VP - Initial Class		25,994,267		18,367,217
Transamerica Balanced VP - Initial Class		3,985,460		5,153,000
Transamerica Jennison Growth VP - Initial Class		160,928,896		23,466,145
Transamerica JPMorgan Enhanced Index VP - Initial Class		4,043,699		14,630,090
Transamerica AEGON High Yield Bond VP - Initial Class		37,634,745		39,136,869
Transamerica Growth Opportunities VP - Initial Class		2,630,602		7,526,872
Transamerica BlackRock Large Cap Value VP - Initial Class		221,590,748		50,361,049
Transamerica PIMCO Total Return VP - Initial Class		74,215,147		81,570,007
Transamerica Focus VP - Initial Class		2,505,758		11,067,045
Transamerica AllianceBernstein Dynamic Allocation VP - Initial Class		5,756,870		7,872,709
Transamerica U.S. Government Securities VP - Initial Class		23,933,093		33,249,212
Transamerica T. Rowe Price Small Cap VP - Initial Class		8,116,306		11,948,591
Transamerica Morgan Stanley Active International Allocation VP - Initial Class		6,295,983		19,108,671
Transamerica Multi Managed Large Cap Core VP - Initial Class		3,064,229		25,721,300
Transamerica Money Market VP - Initial Class		78,546,217		107,132,114
Transamerica Morgan Stanley Mid-Cap Growth VP - Initial Class		6,632,416		6,386,042
Transamerica Series Trust-Service Class
Transamerica Asset Allocation - Growth VP - Service Class		21,109,378		18,917,401
Transamerica Asset Allocation - Conservative VP - Service Class		118,808,702		38,202,789
Transamerica Asset Allocation - Moderate VP - Service Class		153,361,062		42,613,656
Transamerica Asset Allocation - Moderate Growth VP - Service Class		135,175,270		63,087,474
Transamerica WMC Diversified Growth VP - Service Class		2,167,362		1,995,622
Transamerica MFS International Equity VP - Service Class		4,454,318		1,911,573
Transamerica Clarion Global Real Estate Securities VP - Service Class		6,281,520		1,154,828
Transamerica Diversified Equity VP - Service Class		9,519,481		4,326,857
Transamerica Balanced VP - Service Class		23,545,767		2,993,291
Transamerica Jennison Growth VP - Service Class		14,582,223		2,883,605
Transamerica JPMorgan Enhanced Index VP - Service Class		1,236,967		676,371
Transamerica AEGON High Yield Bond VP - Service Class		15,878,240		6,759,040

271

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

2. Investments (continued)

	Purchases		Sales
Transamerica Series Trust - Service Class
Transamerica Growth Opportunities VP - Service Class	$	2,812,044	$	1,132,073
Transamerica BlackRock Large Cap Value VP - Service Class		21,290,205		5,528,382
Transamerica PIMCO Total Return VP - Service Class		114,386,247		13,103,596
Transamerica Focus VP - Service Class		1,070,259		553,567
Transamerica AllianceBernstein Dynamic Allocation VP - Service Class		14,587,049		1,723,951
Transamerica U.S. Government Securities VP - Service Class		92,155,254		54,522,158
Transamerica U.S. Government Securities VP - PAM Fund - Service Class		33,676,364		62,845,733
Transamerica T. Rowe Price Small Cap VP - Service Class		7,341,045		2,379,343
Transamerica Morgan Stanley Active International Allocation VP - Service Class		3,119,227		2,617,794
Transamerica Multi Managed Large Cap Core VP - Service Class		3,147,178		2,274,566
Transamerica Money Market VP - Service Class		88,293,061		82,466,786
Transamerica Morgan Stanley Mid-Cap Growth VP - Service Class		6,148,610		1,378,063
Transamerica International Moderate Growth VP - Service Class		30,781,486		11,920,648
Transamerica Small/Mid Cap Value VP - Service Class		10,735,672		1,203,591
Transamerica Index 50 VP - Service Class		41,015,810		10,938,245
Transamerica Index 75 VP - Service Class		77,458,172		6,500,537
Transamerica Efficient Markets VP - Service Class		12,641,050		1,055,414
Transamerica BlackRock Global Allocation VP - Service Class		222,409,519		2,992,665
Transamerica BlackRock Tactical Allocation VP - Service Class		80,120,383		2,993,733
Transamerica ProFunds UltraBear VP - Service Class OAM		41,919,763		29,214,142
Transamerica Foxhall Global Growth VP - Service Class		16,530,134		626,810
Transamerica Foxhall Global Conservative VP - Service Class		13,888,902		1,064,331
Transamerica Foxhall Global Hard Asset VP - Service Class		16,187,332		1,399,713
Transamerica Foxhall Emerging Markets/Pacific Rim VP - Service Class		18,890,864		1,013,189
Transamerica Hanlon Growth VP - Service Class		14,625,617		1,172,336
Transamerica Hanlon Growth and Income VP - Service Class		17,793,921		2,734,851
Transamerica Hanlon Balanced VP - Service Class		30,479,864		1,247,568
Transamerica Hanlon Managed Income VP - Service Class		131,716,906		5,984,605
Transamerica Index 35 VP - Service Class		23,122,716		995,209
Transamerica Index 100 VP - Service Class		7,024,080		651,452
Transamerica JPMorgan Mid Cap Value VP - Service Class		8,326,478		1,922,132
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Series II Shares
Invesco V.I. Basic Value Fund - Series II		3,318,796		5,874,339
Invesco V.I. Capital Appreciation Fund - Series II		1,170,133		1,181,000
AllianceBernstein Variable Products Series Fund, Inc. - Class B
AllianceBernstein Growth & Income Portfolio - Class B		1,731,322		5,244,997
AllianceBernstein Large Cap Growth Portfolio - Class B		3,251,998		3,346,710
AllianceBernstein Balanced Wealth Strategy Portfolio - Class B		8,125,698		1,015,437
Janus Aspen Series - Service Shares
Janus Aspen - Enterpriseh Portfolio-Service Shares		3,091,454		5,973,637
Janus Aspen Perkins - Mid Cap Value Portfolio-Service Shares		40,712		394,037
Janus Aspen-Worldwide - Service Shares		9,866,194		7,450,678

272

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

2. Investments (continued)

	Purchases		Sales
MFS® Variable Insurance Trust - Service Class
MFS® New Discovery Series - Service Class	$	13,911,032	$	4,749,342
MFS® Total Return Series - Service Class		7,610,227		10,941,903
Fidelity® Variable Insurance Products Fund - Service Class 2
Fidelity VIP Contrafund® Portfolio - Service Class 2		15,628,686		19,715,456
Fidelity VIP Equity-Income Portfolio - Service Class 2		5,796,845		5,963,458
Fidelity VIP Growth Portfolio - Service Class 2		6,980,732		4,074,730
Fidelity VIP Growth Opportunities Portfolio - Service Class 2		22,956		330,382
Fidelity VIP Mid Cap Portfolio - Service Class 2		13,856,567		26,658,272
Fidelity VIP Value Strategies Portfolio - Service Class 2		7,674,189		11,150,920
Fidelity VIP Balanced Portfolio - Service Class 2		11,572,869		1,970,577
Franklin Templeton Variable Insurance Products Trust - Class 2
Franklin Income Securities Fund - Class 2		23,835,511		4,328,984
Mutual Shares Securities Fund - Class 2		8,986,352		2,497,808
Templeton Foreign Securities Fund - Class 2		19,603,699		12,131,655
Franklin Templeton Founding Funds Allocation - Class 4		26,328,246		2,348,496
American Funds Insurance Series Trust - Class 2
American Funds - Asset Allocation Fund		37,384,660		1,552,017
American Funds - Bond Fund		11,793,678		1,189,604
American Funds - Growth Fund		9,814,292		543,736
American Funds - Growth - Income Fund		6,994,906		602,413
American Funds - International Fund		8,328,515		898,914
GE Investments Funds, Inc. - Class 3
GE Investments Total Return Fund		7,352,859		166,127
MTB Group of Funds
MTB Managed Allocation Fund - Moderate Growth II		38,099		235,899
BlackRock Variable Series Funds, Inc.
BlackRock Basic Value V.I. Fund		1,479,133		4,826,243
BlackRock High Income V.I. Fund		2,939,334		3,058,419
BlackRock Global Allocation V.I. Fund		1,769,373		4,478,152
Huntington VA Funds
Huntington VA Dividend Capture Fund		496,129		82,782
Huntington VA Growth Fund		223,368		42,812
Huntington VA Income Equity Fund		30,113		10,324
Huntington VA International Equity Fund		1,336,616		190,163
Huntington VA Macro 100 Fund		105,606		8,916
Huntington VA Mid Corp America Fund		365,943		79,751
Huntington VA Mortgage Securities Fund		772,188		218,149
Huntington VA New Economy Fund		128,426		47,244
Huntington VA Real Strategies Fund		453,239		86,687
Huntington VA Rotating Markets Fund		540,493		56,996
Huntington VA Situs Fund		1,103,913		178,645
Huntington VA Balanced Allocation Fund		12,425,153		256,139

273

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Transamerica Asset Allocation - Growth VP Subaccount			Transamerica Asset Allocation - Conservative VP Subaccount			Transamerica Asset Allocation - Moderate VP Subaccount			Transamerica Asset Allocation - Moderate Growth VP Subaccount			Transamerica WMC Diversified Growth VP Subaccount
Units outstanding at January 1, 2009		300,444,289			376,398,827			799,972,072			1,119,487,288			242,407,649
Units purchased		14,477,310			60,811,194			96,692,158			181,609,410			4,873,596
Units redeemed and transferred to/from		(21,313,955	)		(10,310,193	)		(11,231,207	)		(32,916,768	)		(35,766,003	)
Units outstanding at December 31, 2009		293,607,644			426,899,828			885,433,023			1,268,179,930			211,515,242
Units purchased		13,013,867			65,734,662			97,779,166			96,270,820			10,254,687
Units redeemed and transferred to/from		(28,231,555	)		(23,986,639	)		(71,624,318	)		(104,289,016	)		(30,503,424	)
Units outstanding at December 31, 2010		278,389,956			468,647,851			911,587,871			1,260,161,734			191,266,505

274

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Transamerica MFS International Equity VP Subaccount			Transamerica Clarion Global Real Estate Securities VP Subaccount			Transamerica Diversified Equity VP Subaccount		Transamerica Balanced VP Subaccount		Transamerica Jennison Growth VP Subaccount
Units outstanding at January 1, 2009		68,562,354			30,247,076			25,660,162		21,712,317		24,292,309
Units purchased		1,475,825			770,902			3,398,560		6,367,012		882,386
Units redeemed and transferred to/from		(8,548,796	)		(2,288,251	)		102,963,495		2,971,427		2,862,619
Units outstanding at December 31, 2009		61,489,383			28,729,727			132,022,217		31,050,756		28,037,314
Units purchased		2,628,711			2,701,789			5,133,308		5,754,163		5,076,704
Units redeemed and transferred to/from		(6,726,975	)		(2,765,639	)		9,998,284		9,350,257		153,429,752
Units outstanding at December 31, 2010		57,391,119			28,665,877			147,153,809		46,155,176		186,543,770

275

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Transamerica JPMorgan Enhanced Index VP Subaccount			Transamerica AEGON High Yield Bond VP Subaccount			Transamerica Growth Opportunities VP Subaccount			Transamerica BlackRock Large Cap Value VP Subaccount		Transamerica PIMCO Total Return VP Subaccount
Units outstanding at January 1, 2009		75,561,827			53,656,252			29,680,366			51,860,445		196,989,757
Units purchased		1,713,323			2,515,107			964,997			2,495,267		32,785,772
Units redeemed and transferred to/from		(623,456	)		12,586,582			(3,108,144	)		103,552,102		66,605,293
Units outstanding at December 31, 2009		76,651,694			68,757,941			27,537,219			157,907,814		296,380,822
Units purchased		2,099,604			4,531,010			1,463,591			9,269,248		66,200,947
Units redeemed and transferred to/from		(10,557,181	)		(7,649,423	)		(3,049,349	)		130,146,153		(3,251,191	)
Units outstanding at December 31, 2010		68,194,117			65,639,528			25,951,461			297,323,215		359,330,578

276

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Transamerica Focus VP Subaccount			Transamerica AllianceBernstein Dynamic Allocation VP Subaccount			Transamerica U.S. Government Securities VP Subaccount			Transamerica U.S. Government Securities VP - PAM Fund - SC Subaccount			Transamerica T. Rowe Price Small Cap VP Subaccount
Units outstanding at January 1, 2009		88,988,192			26,236,091			109,754,173			123,965,271			78,416,187
Units purchased		985,661			747,083			35,603,777			—			1,845,128
Units redeemed and transferred to/from		(14,949,000	)		(1,530,046	)		(23,592,097	)		(50,444,405	)		(10,094,532	)
Units outstanding at December 31, 2009		75,024,853			25,453,128			121,765,853			73,520,866			70,166,783
Units purchased		960,193			7,805,658			124,902,026			1,633			3,943,853
Units redeemed and transferred to/from		(8,544,817	)		(956,610	)		(105,102,230	)		(26,765,074	)		(4,503,472	)
Units outstanding at December 31, 2010		67,440,229			32,302,176			141,565,649			46,757,425			69,607,164

277

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Transamerica Morgan Stanley Active International Allocation VP Subaccount			Transamerica Multi Managed Large Cap Core VP Subaccount			Transamerica Money Market VP Subaccount			Transamerica Morgan Stanley Mid-Cap Growth VP Subaccount			Transamerica International Moderate Growth VP - SC Subaccount
Units outstanding at January 1, 2009		82,531,196			48,296,593			317,875,150			36,398,819			113,793,326
Units purchased		1,893,538			1,991,616			59,049,409			1,390,349			—
Units redeemed and transferred to/from		(10,200,567	)		39,315,378			(157,440,802	)		(446,610	)		44,844,300
Units outstanding at December 31, 2009		74,224,167			89,603,587			219,483,757			37,342,558			158,637,626
Units purchased		2,197,956			2,751,158			83,867,607			2,777,065			26,677,095
Units redeemed and transferred to/from		(11,070,065	)		(12,757,340	)		(99,561,456	)		851,814			(7,811,703	)
Units outstanding at December 31, 2010		65,352,058			79,597,405			203,789,908			40,971,437			177,503,018

278

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Transamerica Small/Mid Cap Value VP Subaccount			Transamerica Index 50 VP - SC Subaccount			Transamerica Index 75 VP - SC Subaccount		Transamerica Efficient Markets VP - SC Subaccount		Transamerica BlackRock Global Allocation VP - SC Subaccount(1)
Units outstanding at January 1, 2009		63,351,112			6,707,702			20,462,446		52,057		—
Units purchased		2,332,328			—			—		—		—
Units redeemed and transferred to/from		(7,960,989	)		45,733,871			88,032,906		7,257,991		57,237,568
Units outstanding at December 31, 2009		57,722,451			52,441,573			108,495,352		7,310,048		57,237,568
Units purchased		7,683,922			33,263,705			72,708,446		8,255,292		147,258,987
Units redeemed and transferred to/from		(3,807,691	)		(2,883,290	)		4,809,949		879,955		34,155,229
Units outstanding at December 31, 2010		61,598,682			82,821,988			186,013,747		16,445,295		238,651,784

279

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Transamerica BlackRock Tactical Allocation VP - SC Subaccount(1)		Transamerica ProFunds UltraBear VP - SC OAM Subaccount(1)		Transamerica Foxhall Global Growth VP - SC Subaccount(1)		Transamerica Foxhall Global Conservative VP - SC Subaccount(1)		Transamerica Foxhall Global Hard Asset VP - SC Subaccount(1)
Units outstanding at January 1, 2009		—		—		—		—		—
Units purchased		—		—		—		—		—
Units redeemed and transferred to/from		14,707,310		639,202		829,307		743,244		1,452,049
Units outstanding at December 31, 2009		14,707,310		639,202		829,307		743,244		1,452,049
Units purchased		38,472,557		—		15,746,175		11,740,003		13,445,363
Units redeemed and transferred to/from		25,469,815		17,238,560		330,336		2,022,426		2,129,385
Units outstanding at December 31, 2010		78,649,682		17,877,762		16,905,818		14,505,673		17,026,797

280

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Transamerica  Foxhall Emerging Markets/Pacific Rim VP - SC Subaccount(1)		Transamerica Hanlon Growth VP - SC Subaccount(1)		Transamerica Hanlon Growth and Income VP - SC Subaccount(1)			Transamerica Hanlon Balanced VP - SC Subaccount(1)		Transamerica Hanlon Managed Income VP - SC Subaccount(1)
Units outstanding at January 1, 2009		—		—		—			—		—
Units purchased		—		—		—			—		—
Units redeemed and transferred to/from		1,952,355		592,237		389,413			1,141,493		9,549,230
Units outstanding at December 31, 2009		1,952,355		592,237		389,413			1,141,493		9,549,230
Units purchased		16,406,402		13,611,660		17,105,701			29,557,820		126,946,261
Units redeemed and transferred to/from		1,857,379		321,344		(1,595,103	)		827,009		(752,701	)
Units outstanding at December 31, 2010		20,216,136		14,525,241		15,900,011			31,526,322		135,742,790

281

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Transamerica Index 35 VP - SC Subaccount(1)		Transamerica Index 100 VP - SC Subaccount(1)		Transamerica JPMorgan Mid Cap Value VP - SC Subaccount(1)		Invesco V.I. Basic Value Subaccount			Invesco V.I. Capital Appreciation Subaccount
Units outstanding at January 1, 2009		—		—		—		29,192,375			6,692,362
Units purchased		—		—		—		1,391,468			525,917
Units redeemed and transferred to/from		206,947		290,786		78,140		(1,647,178	)		(223,681	)
Units outstanding at December 31, 2009		206,947		290,786		78,140		28,936,665			6,994,598
Units purchased		18,080,706		4,331,759		1,585,487		2,016,751			735,511
Units redeemed and transferred to/from		3,429,667		1,791,391		4,118,624		(4,807,576	)		(724,094	)
Units outstanding at December 31, 2010		21,717,320		6,413,936		5,782,251		26,145,840			7,006,015

282

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	AllianceBernstein Growth & Income Subaccount			AllianceBernstein Large Cap Growth Subaccount			AllianceBernstein Balanced Wealth Strategy Subaccount		Janus Aspen-Enterprise Subaccount			Janus Aspen Perkins- Mid Cap Value Subaccount
Units outstanding at January 1, 2009		53,322,418			28,070,368			154,287		27,900,139			2,704,031
Units purchased		1,279,956			769,129			6,586,287		838,684			4,350
Units redeemed and transferred to/from		(8,913,620	)		(1,319,722	)		1,364,056		(4,534,369	)		(357,361	)
Units outstanding at December 31, 2009		45,688,754			27,519,775			8,104,630		24,204,454			2,351,020
Units purchased		1,808,956			1,957,728			4,458,317		964,484			40,504
Units redeemed and transferred to/from		(5,240,686	)		(2,296,384	)		1,037,834		(4,323,310	)		(276,976	)
Units outstanding at December 31, 2010		42,257,024			27,181,119			13,600,781		20,845,628			2,114,548

283

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Janus Aspen- Worldwide Subaccount			MFS® New  Discovery Subaccount		MFS® Total  Return Subaccount			Fidelity  VIP Contrafund® Subaccount			Fidelity VIP Equity- Income Subaccount
Units outstanding at January 1, 2009		45,032,767			15,212,879		56,745,490			156,031,898			52,994,411
Units purchased		1,502,594			2,021,611		1,876,734			5,104,949			1,240,206
Units redeemed and transferred to/from		5,224,708			4,216,494		(3,738,533	)		(15,942,960	)		(8,693,607	)
Units outstanding at December 31, 2009		51,760,069			21,450,984		54,883,691			145,193,887			45,541,010
Units purchased		4,054,569			4,968,748		3,661,664			11,468,761			3,352,179
Units redeemed and transferred to/from		(1,790,818	)		2,077,954		(7,038,446	)		(14,942,233	)		(3,581,864	)
Units outstanding at December 31, 2010		54,023,820			28,497,686		51,506,909			141,720,415			45,311,325

284

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Fidelity VIP Growth Subaccount			Fidelity VIP Growth Opportunities Subaccount			Fidelity VIP Mid Cap Subaccount			Fidelity VIP Value Strategies Subaccount			Fidelity VIP Balanced Subaccount
Units outstanding at January 1, 2009		38,408,158			2,952,425			123,204,417			49,976,391			5,787,687
Units purchased		2,007,289			414,973			2,812,756			1,560,500			11,863,061
Units redeemed and transferred to/from		(7,932,221	)		(858,000	)		(19,888,662	)		(6,265,264	)		1,783,432
Units outstanding at December 31, 2009		32,483,226			2,509,398			106,128,511			45,271,627			19,434,180
Units purchased		3,235,264			12,246			5,838,256			3,242,625			7,689,281
Units redeemed and transferred to/from		161,182			(395,051	)		(11,090,873	)		(5,673,690	)		2,185,237
Units outstanding at December 31, 2010		35,879,672			2,126,593			100,875,894			42,840,562			29,308,698

285

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Franklin Income Securities Subaccount		Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton Founding Funds Allocation Subaccount		American Funds – Asset Allocation Fund Subaccount(1)
Units outstanding at January 1, 2009		15,807,606		9,560,602		20,514,605		497,588		—
Units purchased		3,559,455		1,340,412		2,864,044		16,313,330		486,252
Units redeemed and transferred to/from		12,914,600		2,228,776		13,078,045		3,346,570		251,380
Units outstanding at December 31, 2009		32,281,661		13,129,790		36,456,694		20,157,488		737,632
Units purchased		9,016,079		3,762,484		6,637,119		15,048,236		28,138,116
Units redeemed and transferred to/from		9,714,400		4,586,280		1,618,510		3,312,178		6,318,069
Units outstanding at December 31, 2010		51,012,140		21,478,554		44,712,323		38,517,902		35,193,817

286

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	American Funds –Bond Fund Subaccount(1)		American Funds – Growth Fund Subaccount(1)			American Funds – Growth–Income Fund Subaccount(1)		American Funds – International Fund Subaccount(1)		GE Investments Total Return Fund Subaccount(1)
Units outstanding at January 1, 2009		—		—			—		—		—
Units purchased		441,549		220,658			76,876		62,389		155,847
Units redeemed and transferred to/from		62,887		(530	)		2,631		16,937		1,834
Units outstanding at December 31, 2009		504,436		220,128			79,507		79,326		157,681
Units purchased		7,347,108		8,286,744			6,200,668		7,089,008		5,617,470
Units redeemed and transferred to/from		2,725,046		642,964			67,066		555,801		1,460,162
Units outstanding at December 31, 2010		10,576,590		9,149,836			6,347,241		7,724,135		7,235,313

287

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	MTB Managed Allocation Fund- Moderate Growth  II Subaccount			BlackRock Basic Value V.I. Subaccount			BlackRock High Income V.I. Subaccount			BlackRock Global Allocation V.I. Subaccount			Huntington VA Dividend Capture Subaccount
Units outstanding at January 1, 2009		877,931			24,774,917			6,376,867			18,420,989			47,418
Units purchased		42,370			176,347			29,063			219,598			96,305
Units redeemed and transferred to/from		(229,866	)		(3,485,714	)		(567,077	)		(901,199	)		25,357
Units outstanding at December 31, 2009		690,435			21,465,550			5,838,853			17,739,388			169,080
Units purchased		—			183,591			56,787			453,779			462,806
Units redeemed and transferred to/from		(183,392	)		(2,586,605	)		(483,311	)		(2,032,750	)		(3,905	)
Units outstanding at December 31, 2010		507,043			19,062,536			5,412,329			16,160,417			627,981

288

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Huntington VA Growth Subaccount			Huntington VA  Income Equity Subaccount			Huntington VA International Equity Subaccount		Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount
Units outstanding at January 1, 2009		87,352			19,602			270,243		—		32,319
Units purchased		70,327			69,180			490,610		3,368		164,166
Units redeemed and transferred to/from		(14,241	)		(1,304	)		776		—		4,155
Units outstanding at December 31, 2009		143,438			87,478			761,629		3,368		200,640
Units purchased		239,915			32,200			966,386		101,116		363,742
Units redeemed and transferred to/from		4,431			(5,135	)		456,407		25,380		(32,595	)
Units outstanding at December 31, 2010		387,784			114,543			2,184,422		129,864		531,787

289

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding

A summary of changes in equivalent accumulation units outstanding follows:

	Huntington VA Mortgage Securities Subaccount			Huntington VA New Economy Subaccount		Huntington VA Real Strategies Subaccount		Huntington VA Rotating Markets Subaccount		Huntington VA Situs Subaccount
Units outstanding at January 1, 2009		315,384			53,994		43,826		14,465		292,737
Units purchased		296,201			93,656		163,060		41,770		411,080
Units redeemed and transferred to/from		(85,642	)		26,259		47,312		37,248		27,315
Units outstanding at December 31, 2009		525,943			173,909		254,198		93,483		731,132
Units purchased		218,299			109,954		465,232		528,500		904,388
Units redeemed and transferred to/from		280,695			9,811		2,738		86,884		223,121
Units outstanding at December 31, 2010		1,024,937			293,674		722,168		708,867		1,858,641

290

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

Years Ended December 31, 2010 and 2009, Except as Noted, continued

3. Accumulation Units Outstanding 151

A summary of changes in equivalent accumulation units outstanding follows:

	Huntington VA Balanced Allocation Subaccount
Units outstanding at January 1, 2009		27,365
Units purchased		2,261,433
Units redeemed and transferred to/from		745,414
Units outstanding at December 31, 2009		3,034,212
Units purchased		8,446,821
Units redeemed and transferred to/from		1,658,711
Units outstanding at December 31, 2010		13,139,744

291

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights

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

Subaccount	Year Ended		Units		Unit FairValue 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 Asset Allocation - Growth VP
		12/31/2010		278,389,956	$	1.37	to	$	0.86	$	384,350,007		1.02	%		1.25	%	to	2.30	%		13.53	%	to	12.07	%
		12/31/2009		293,607,644		1.21	to		0.76		356,027,919		2.49			1.25		to	2.30			28.22		to	26.63
		12/31/2008		300,444,289		0.94	to		0.60		283,936,866		2.77			1.25		to	2.30			(40.38	)	to	(41.12	)
		12/31/2007		352,164,822		1.58	to		1.79		564,355,445		2.21			1.25		to	2.30			6.42		to	5.10
		12/31/2006		350,039,016		1.49	to		1.70		530,509,389		0.89			1.25		to	2.30			14.19		to	12.69
Transamerica Asset Allocation - Conservative VP
		12/31/2010		468,647,851		1.44	to		1.02		663,216,570		3.24			1.25		to	2.45			7.59		to	6.11
		12/31/2009		426,899,828		1.34	to		0.96		561,519,294		4.40			1.25		to	2.45			23.68		to	21.92
		12/31/2008		376,398,827		1.08	to		0.79		400,340,125		3.06			1.25		to	2.45			(22.16	)	to	(20.97	)
		12/31/2007		271,510,446		1.39	to		1.40		374,984,394		3.03			1.25		to	2.30			5.06		to	3.75
		12/31/2006		236,067,755		1.33	to		1.35		311,598,094		3.42			1.25		to	2.30			8.10		to	6.69
Transamerica Asset Allocation - Moderate VP
		12/31/2010		911,587,871		1.46	to		1.01		1,328,831,884		2.96			1.25		to	2.45			9.01		to	7.50
		12/31/2009		885,433,023		1.34	to		0.94		1,182,888,651		4.33			1.25		to	2.45			24.84		to	23.18
		12/31/2008		799,972,072		1.07	to		0.76		856,542,397		3.39			1.25		to	2.45			(26.88	)	to	(23.89	)
		12/31/2007		792,140,948		1.47	to		1.53		1,167,804,097		2.94			1.25		to	2.30			6.62		to	5.30
		12/31/2006		728,972,014		1.38	to		1.45		1,013,622,612		2.59			1.25		to	2.30			10.11		to	8.72
Transamerica Asset Allocation - Moderate Growth VP
		12/31/2010		1,260,161,734		1.44	to		0.98		1,848,961,931		2.09			1.25		to	2.45			11.34		to	9.72
		12/31/2009		1,268,179,930		1.29	to		0.89		1,671,991,913		3.32			1.25		to	2.45			26.58		to	24.81
		12/31/2008		1,119,487,288		1.02	to		0.71		1,168,981,435		2.97			1.25		to	2.45			(33.60	)	to	(28.72	)
		12/31/2007		1,127,588,611		1.54	to		1.66		1,772,642,396		2.31			1.25		to	2.30			6.47		to	5.13
		12/31/2006		1,016,439,937		1.45	to		1.58		1,499,266,700		1.60			1.25		to	2.30			12.43		to	10.99
Transamerica WMC Diversified Growth VP
		12/31/2010		191,266,505		1.12	to		0.83		183,017,814		0.53			1.25		to	2.30			16.36		to	14.84
		12/31/2009		211,515,242		0.96	to		0.73		173,764,901		0.92			1.25		to	2.30			27.60		to	26.00
		12/31/2008		242,407,649		0.75	to		0.58		154,901,502		0.22			1.25		to	2.30			(46.68	)	to	(47.39	)
		12/31/2007		283,879,833		1.41	to		1.86		341,421,631		0.02			1.25		to	2.30			14.84		to	13.42
		12/31/2006		365,699,293		1.23	to		1.64		380,393,246		—			1.25		to	2.30			7.38		to	5.95
Transamerica MFS International Equity VP
		12/31/2010		57,391,119		1.20	to		0.91		72,045,895		1.36			1.25		to	2.30			9.13		to	7.83
		12/31/2009		61,489,383		1.10	to		0.84		70,065,045		2.76			1.25		to	2.30			31.05		to	29.26
		12/31/2008		68,562,354		0.84	to		0.65		59,550,150		5.08			1.25		to	2.30			(36.09	)	to	(37.00	)
		12/31/2007		85,687,522		1.31	to		1.96		117,265,990		0.91			1.25		to	2.30			7.80		to	6.41
		12/31/2006		97,843,578		1.22	to		1.84		123,798,123		1.37			1.25		to	2.30			21.55		to	20.16

292

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

Subaccount	Year Ended	Units		Unit FairValue 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 Clarion Global Real Estate Securities VP
	12/31/2010		28,665,877	$	2.04	to	$	0.82	$	56,085,937		6.20	%		1.25	%	to	2.30	%		14.24	%	to	12.71	%
	12/31/2009		28,729,727		1.78	to		0.73		49,666,479		—			1.25		to	2.30			31.77		to	30.01
	12/31/2008		30,247,076		1.35	to		0.56		39,869,448		6.44			1.25		to	2.30			(43.09	)	to	(43.80	)
	12/31/2007		39,920,169		2.38	to		2.28		93,167,627		6.31			1.25		to	2.30			(7.86	)	to	(9.01	)
	12/31/2006		55,297,091		2.58	to		2.51		140,937,555		1.38			1.25		to	2.30			40.52		to	38.73
Transamerica Diversified Equity VP
	12/31/2010		147,153,809		1.12	to		0.85		121,543,369		1.04			1.25		to	2.30			15.41		to	13.93
	12/31/2009		132,022,217		0.97	to		0.74		93,498,468		1.88			1.25		to	2.30			26.74		to	24.97
	12/31/2008		25,660,162		0.76	to		0.60		13,594,435		1.85			1.25		to	2.30			(44.37	)	to	(45.08	)
	12/31/2007		30,718,024		1.37	to		1.47		29,807,463		1.51			1.25		to	2.30			13.82		to	12.38
	12/31/2006		32,638,941		1.20	to		1.31		27,543,986		1.28			1.25		to	2.30			17.33		to	15.79
Transamerica Balanced VP
	12/31/2010		46,155,176		1.53	to		1.08		68,704,597		0.47			1.25		to	2.45			22.59		to	20.92
	12/31/2009		31,050,756		1.25	to		0.90		37,876,212		1.78			1.25		to	2.45			24.74		to	22.93
	12/31/2008		21,712,317		1.00	to		0.73		21,423,465		1.84			1.25		to	2.45			(33.24	)	to	(27.04	)
	12/31/2007		20,464,582		1.50	to		1.47		30,376,450		1.11			1.25		to	2.30			12.20		to	10.81
	12/31/2006		20,246,317		1.34	to		1.33		26,879,335		0.98			1.25		to	2.30			7.78		to	6.30
Transamerica Jennison Growth VP
	12/31/2010		186,543,770		1.02	to		0.98		189,194,997		0.05			1.25		to	2.30			10.88		to	9.46
	12/31/2009		28,037,314		0.92	to		0.89		25,367,528		0.15			1.25		to	2.30			39.26		to	37.53
	12/31/2008		24,292,309		0.66	to		0.65		15,596,912		0.10			1.25		to	2.30			(37.79	)	to	(38.53	)
	12/31/2007		27,500,516		1.02	to		1.53		28,486,491		0.06			1.25		to	2.30			10.13		to	8.76
	12/31/2006		34,860,247		0.93	to		1.40		32,663,281		—			1.25		to	2.30			0.71		to	(0.68	)
Transamerica JPMorgan Enhanced Index VP
	12/31/2010		68,194,117		1.01	to		0.87		85,659,071		1.32			1.25		to	2.30			13.76		to	12.27
	12/31/2009		76,651,694		0.89	to		0.77		85,362,534		2.18			1.25		to	2.30			27.99		to	26.41
	12/31/2008		75,561,827		0.70	to		0.61		65,362,497		5.60			1.25		to	2.30			(38.13	)	to	(38.93	)
	12/31/2007		88,489,862		1.12	to		1.51		125,749,660		1.14			1.25		to	2.30			3.24		to	1.94
	12/31/2006		106,837,575		1.09	to		1.48		149,820,009		1.04			1.25		to	2.30			13.89		to	12.39
Transamerica AEGON High Yield Bond VP
	12/31/2010		65,639,528		1.65	to		1.15		102,542,200		14.31			1.25		to	2.30			11.05		to	9.65
	12/31/2009		68,757,941		1.48	to		1.05		97,606,766		8.81			1.25		to	2.30			45.42		to	43.56
	12/31/2008		53,656,252		1.02	to		0.73		52,752,860		9.45			1.25		to	2.30			(26.13	)	to	(27.15	)
	12/31/2007		65,237,746		1.38	to		1.23		87,246,453		8.71			1.25		to	2.30			0.59		to	(0.57	)
	12/31/2006		81,322,999		1.37	to		1.24		108,605,358		9.68			1.25		to	2.30			9.58		to	8.14

293

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

Subaccount	Year Ended	Units		Unit FairValue 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 Growth Opportunities VP
	12/31/2010		25,951,461	$	2.14	to	$	1.09	$	52,625,342		0.03	%		1.25	%	to	2.30	%		33.99	%	to	32.25	%
	12/31/2009		27,537,219		1.60	to		0.82		41,891,360		0.33			1.25		to	2.30			35.17		to	33.45
	12/31/2008		29,680,366		1.18	to		0.62		33,640,632		3.51			1.25		to	2.30			(41.64	)	to	(42.40	)
	12/31/2007		37,506,754		2.03	to		1.98		73,168,251		0.04			1.25		to	2.30			21.56		to	19.96
	12/31/2006		44,227,884		1.67	to		1.65		71,071,187		0.19			1.25		to	2.30			3.81		to	2.54
Transamerica BlackRock Large Cap Value VP
	12/31/2010		297,323,215		1.31	to		0.78		404,764,627		0.85			1.25		to	2.30			9.08		to	7.68
	12/31/2009		157,907,814		1.20	to		0.73		197,986,732		1.04			1.25		to	2.30			12.58		to	11.16
	12/31/2008		51,860,445		1.07	to		0.65		57,622,753		0.90			1.25		to	2.30			(34.71	)	to	(35.55	)
	12/31/2007		60,237,862		1.64	to		1.90		103,081,638		0.91			1.25		to	2.30			3.34		to	1.99
	12/31/2006		66,036,946		1.59	to		1.86		109,965,001		0.49			1.25		to	2.30			15.48		to	14.00
Transamerica PIMCO Total Return VP
	12/31/2010		359,330,578		1.47	to		1.08		498,064,052		4.18			1.25		to	2.45			5.87		to	4.38
	12/31/2009		296,380,822		1.39	to		1.03		394,940,745		6.56			1.25		to	2.45			14.60		to	12.98
	12/31/2008		196,989,757		1.21	to		0.91		232,447,318		5.94			1.25		to	2.45			(4.00	)	to	(8.63	)
	12/31/2007		179,268,797		1.26	to		1.10		221,824,032		2.58			1.25		to	2.30			7.60		to	6.35
	12/31/2006		184,045,568		1.17	to		1.04		212,343,313		3.40			1.25		to	2.30			2.93		to	1.57
Transamerica Focus VP
	12/31/2010		67,440,229		1.21	to		0.96		85,216,855		0.86			1.25		to	2.30			25.87		to	24.23
	12/31/2009		75,024,853		0.97	to		0.77		75,433,842		2.54			1.25		to	2.30			26.33		to	24.70
	12/31/2008		88,988,192		0.76	to		0.62		70,947,292		2.05			1.25		to	2.30			(37.15	)	to	(37.97	)
	12/31/2007		110,812,098		1.22	to		1.56		141,294,608		1.28			1.25		to	2.30			(0.22	)	to	(1.51	)
	12/31/2006		135,756,807		1.22	to		1.59		173,770,465		0.98			1.25		to	2.30			17.10		to	15.64
Transamerica AllianceBernstein Dynamic Allocation VP
	12/31/2010		32,302,176		1.45	to		1.05		45,361,877		5.13			1.25		to	2.45			7.94		to	4.56
	12/31/2009		25,453,128		1.34	to		0.86		33,340,808		3.75			1.25		to	2.30			29.68		to	28.22
	12/31/2008		26,236,091		1.04	to		0.67		26,654,279		5.70			1.25		to	2.30			(37.66	)	to	(38.42	)
	12/31/2007		32,362,294		1.66	to		1.61		52,997,756		2.02			1.25		to	2.30			17.16		to	15.62
	12/31/2006		32,032,000		1.42	to		1.39		45,008,172		1.66			1.25		to	2.30			9.53		to	8.17
Transamerica U.S. Government Securities VP
	12/31/2010		141,565,649		1.34	to		1.06		195,750,893		3.12			1.25		to	2.45			3.11		to	1.73
	12/31/2009		121,765,853		1.30	to		1.04		169,958,982		2.25			1.25		to	2.45			3.18		to	1.71
	12/31/2008		109,754,173		1.26	to		1.03		157,185,721		2.05			1.25		to	2.45			6.33		to	2.56
	12/31/2007		81,431,564		1.19	to		1.03		111,128,766		4.51			1.25		to	2.30			4.73		to	3.39
	12/31/2006		92,284,663		1.13	to		1.00		120,957,931		3.65			1.25		to	2.30			2.00		to	0.75

294

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

Subaccount	Year Ended	Units		Unit FairValue 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 U.S. Government Securities VP - PAM Fund - SC
	12/31/2010		46,757,425	$	1.24	to	$	1.11	$	56,311,869		3.13	%		1.25	%	to	2.00	%		2.94	%	to	2.18	%
	12/31/2009		73,520,866		1.20	to		1.09		86,072,017		2.08			1.25		to	2.00			2.91		to	2.15
	12/31/2008		123,965,271		1.17	to		1.07		141,241,498		1.65			1.25		to	2.00			6.09		to	5.30
	12/31/2007		5,178,923		1.10	to		1.05		5,566,215		18.43			1.25		to	2.00			4.47		to	3.70
	12/31/2006		164		1.05	to		1.01		170		11.71			1.25		to	2.00			1.79		to	1.04
Transamerica T. Rowe Price Small Cap VP
	12/31/2010		69,607,164		1.44	to		1.11		92,110,138		—			1.25		to	2.30			32.77		to	31.05
	12/31/2009		70,166,783		1.08	to		0.85		68,613,378		—			1.25		to	2.30			36.99		to	35.22
	12/31/2008		78,416,187		0.79	to		0.63		55,249,620		1.60			1.25		to	2.30			(37.04	)	to	(37.84	)
	12/31/2007		92,857,315		1.25	to		1.66		104,800,420		—			1.25		to	2.30			8.25		to	6.80
	12/31/2006		117,898,288		1.16	to		1.56		122,758,117		—			1.25		to	2.30			2.31		to	1.02
Transamerica Morgan Stanley Active International Allocation VP
	12/31/2010		65,352,058		1.29	to		0.83		105,560,749		1.98			1.25		to	2.30			7.14		to	5.77
	12/31/2009		74,224,167		1.20	to		0.78		112,404,738		0.15			1.25		to	2.30			24.33		to	22.85
	12/31/2008		82,531,196		0.97	to		0.64		101,691,108		5.13			1.25		to	2.30			(39.59	)	to	(40.42	)
	12/31/2007		101,148,678		1.60	to		2.23		207,322,239		2.74			1.25		to	2.30			14.17		to	12.67
	12/31/2006		105,527,585		1.40	to		1.98		192,418,681		0.32			1.25		to	2.30			21.99		to	20.42
Transamerica Multi Managed Large Cap Core VP
	12/31/2010		79,597,405		1.30	to		0.96		167,422,672		0.66			1.25		to	2.30			17.70		to	16.20
	12/31/2009		89,603,587		1.11	to		0.82		162,435,410		0.93			1.25		to	2.30			43.62		to	41.82
	12/31/2008		48,296,593		0.77	to		0.58		65,477,186		3.79			1.25		to	2.30			(42.80	)	to	(43.51	)
	12/31/2007		54,595,685		1.35	to		1.54		134,536,669		0.90			1.25		to	2.30			7.89		to	6.48
	12/31/2006		66,608,332		1.25	to		1.45		158,096,474		0.93			1.25		to	2.30			8.97		to	7.59
Transamerica Money Market VP
	12/31/2010		203,789,908		1.08	to		0.95		240,583,329		0.01			1.25		to	2.45			(1.23	)	to	(2.39	)
	12/31/2009		219,483,757		1.09	to		0.97		263,342,710		0.12			1.25		to	2.45			(1.10	)	to	(2.38	)
	12/31/2008		317,875,150		1.11	to		1.00		390,109,230		2.24			1.25		to	2.45			1.13		to	(0.38	)
	12/31/2007		166,726,912		1.09	to		1.02		205,999,246		4.90			1.25		to	2.30			3.73		to	2.40
	12/31/2006		131,502,869		1.06	to		1.00		159,021,596		4.74			1.25		to	2.30			3.44		to	2.13
Transamerica Morgan Stanley Mid-Cap Growth VP
	12/31/2010		40,971,437		1.25	to		1.16		49,878,592		0.11			1.25		to	2.30			32.25		to	30.58
	12/31/2009		37,342,558		0.94	to		0.89		33,153,233		—			1.25		to	2.30			58.58		to	56.52
	12/31/2008		36,398,819		0.59	to		0.57		20,184,740		2.04			1.25		to	2.30			(46.96	)	to	(47.65	)
	12/31/2007		42,948,574		1.00	to		1.66		45,031,573		—			1.25		to	2.30			21.01		to	19.48
	12/31/2006		47,582,402		0.82	to		1.39		41,298,876		—			1.25		to	2.30			8.55		to	7.13

295

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

Subaccount	Year Ended	Units		Unit FairValue 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 International Moderate Growth VP - SC
	12/31/2010		177,503,018	$	0.97	to	$	0.93	$	169,854,337		2.54	%		1.25	%	to	2.45	%		8.88	%	to	7.61	%
	12/31/2009		158,637,626		0.89	to		0.86		139,691,778		2.66			1.25		to	2.45			27.73		to	26.23
	12/31/2008		113,793,326		0.70	to		0.68		78,605,551		2.45			1.25		to	2.45			(37.11	)	to	(31.85	)
	12/31/2007		70,286,387		1.11	to		1.09		77,443,929		1.32			1.25		to	2.30			7.15		to	6.04
	12/31/2006(1)		14,250,077		1.03	to		1.03		14,692,958		—			1.25		to	2.30			3.21		to	2.54
Transamerica Small/Mid Cap Value VP
	12/31/2010		61,598,682		2.17	to		1.17		167,789,740		0.73			1.25		to	2.30			28.80		to	27.13
	12/31/2009		57,722,451		1.69	to		0.92		137,826,521		3.20			1.25		to	2.30			41.45		to	39.69
	12/31/2008		63,351,112		1.19	to		0.66		111,735,406		1.76			1.25		to	2.30			(41.60	)	to	(34.34	)
	12/31/2007		73,511,327		2.04	to		5.94		232,779,139		0.90			1.25		to	2.05			23.19		to	22.22
	12/31/2006		93,211,808		1.66	to		1.71		246,204,461		0.87			1.25		to	2.05			16.60		to	15.69
Transamerica Index 50 VP - SC
	12/31/2010		82,821,988		1.09	to		1.00		85,012,842		1.15			1.25		to	2.45			9.33		to	8.04
	12/31/2009		52,441,573		1.00	to		0.92		49,277,110		0.34			1.25		to	2.45			15.09		to	13.74
	12/31/2008(1)		6,707,702		0.82	to		0.81		5,488,483		—			1.25		to	2.45			(18.08	)	to	(18.73	)
Transamerica Index 75 VP - SC
	12/31/2010		186,013,747		1.12	to		0.95		181,958,510		1.24			1.25		to	2.45			11.61		to	10.30
	12/31/2009		108,495,352		1.00	to		0.86		95,152,421		0.45			1.25		to	2.45			21.66		to	20.24
	12/31/2008(1)		20,462,446		0.72	to		0.72		14,772,045		—			1.25		to	2.45			(27.70	)	to	(28.27	)
Transamerica Efficient Markets VP - SC
	12/31/2010		16,445,295		1.34	to		1.31		21,946,805		0.65			1.30		to	2.45			10.94		to	9.69
	12/31/2009		7,310,048		1.21	to		1.19		8,798,793		0.04			1.30		to	2.45			16.35		to	15.04
	12/31/2008(1)		52,057		1.04	to		1.04		53,981		—			1.30		to	2.45			3.71		to	3.55
Transamerica BlackRock Global Allocation VP - SC
	12/31/2010		238,651,784		1.31	to		1.28		310,739,807		0.49			1.35		to	2.40			8.31		to	7.20
	12/31/2009(1)		57,237,568		1.21	to		1.20		68,899,195		—			1.35		to	2.40			20.52		to	19.69
Transamerica BlackRock Tactical Allocation VP - SC
	12/31/2010		78,649,682		1.10	to		1.09		101,263,833		0.43			1.25		to	2.30			9.87		to	8.74
	12/31/2009(1)		14,707,310		1.00	to		1.00		17,683,172		—			1.25		to	2.30			1.02		to	0.90
Transamerica ProFunds UltraBear VP - SC OAM
	12/31/2010		17,877,762		0.41	to		0.40		7,265,669		—			1.30		to	2.00			(27.70	)	to	(28.20	)
	12/31/2009(1)		639,202		0.56	to		0.56		359,679		—			1.30		to	2.00			(43.69	)	to	(43.95	)
Transamerica Foxhall Global Growth VP - SC
	12/31/2010		16,905,818		1.05	to		1.04		17,688,946		0.30			1.30		to	2.30			4.03		to	3.02
	12/31/2009(1)		829,307		1.01	to		1.01		834,815		—			1.30		to	2.30			1.79		to	1.68

296

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

Subaccount	Year Ended	Units		Unit FairValue 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 Foxhall Global Conservative VP - SC
	12/31/2010		14,505,673	$	0.91	to	$	0.90	$	13,217,625		0.13	%		1.30	%	to	2.45	%		(7.30	)%	to	(8.34	)%
	12/31/2009(1)		743,244		0.98	to		0.98		731,147		—			1.30		to	2.45			(1.13	)	to	(1.26	)
Transamerica Foxhall Global Hard Asset VP - SC
	12/31/2010		17,026,797		1.00	to		0.99		17,072,345		0.16			1.30		to	2.30			1.78		to	0.78
	12/31/2009(1)		1,452,049		0.99	to		0.98		1,431,731		—			1.30		to	2.30			(0.05	)	to	(0.16	)
Transamerica Foxhall Emerging Markets/Pacific Rim VP - SC
	12/31/2010		20,216,136		1.03	to		1.02		20,808,166		0.33			1.30		to	2.30			2.05		to	1.05
	12/31/2009(1)		1,952,355		1.01	to		1.01		1,970,882		—			1.30		to	2.30			1.90		to	1.79
Transamerica Hanlon Growth VP - SC
	12/31/2010		14,525,241		1.00	to		0.99		14,531,476		1.15			1.30		to	2.30			(1.98	)	to	(2.94	)
	12/31/2009(1)		592,237		1.02	to		1.02		604,947		—			1.30		to	2.30			2.53		to	2.41
Transamerica Hanlon Growth and Income VP - SC
	12/31/2010		15,900,011		0.99	to		0.98		15,698,812		0.75			1.30		to	2.30			(3.37	)	to	(4.32	)
	12/31/2009(1)		389,413		1.02	to		1.02		398,229		—			1.30		to	2.30			2.55		to	2.43
Transamerica Hanlon Balanced VP - SC
	12/31/2010		31,526,322		0.97	to		0.96		30,638,198		0.42			1.30		to	2.30			(4.70	)	to	(5.63	)
	12/31/2009(1)		1,141,493		1.02	to		1.02		1,165,255		—			1.30		to	2.30			2.28		to	2.16
Transamerica Hanlon Managed Income VP - SC
	12/31/2010		135,742,790		0.99	to		0.98		134,524,479		0.23			1.30		to	2.30			(1.17	)	to	(2.13	)
	12/31/2009(1)		9,549,230		1.00	to		1.00		9,585,273		—			1.30		to	2.30			0.40		to	0.28
Transamerica Index 35 VP - SC
	12/31/2010		21,717,320		1.08	to		1.07		23,399,680		0.03			1.25		to	2.45			8.07		to	6.81
	12/31/2009(1)		206,947		1.00	to		1.00		206,617		—			1.25		to	2.45			(0.14	)	to	(0.28	)
Transamerica Index 100 VP - SC
	12/31/2010		6,413,936		1.16	to		1.14		7,414,922		0.07			1.25		to	2.30			12.99		to	11.84
	12/31/2009(1)		290,786		1.02	to		1.02		297,837		—			1.25		to	2.30			2.45		to	2.33
Transamerica JPMorgan Mid Cap Value VP - SC
	12/31/2010		5,782,251		1.25	to		1.24		7,207,008		2.76			1.25		to	2.30			21.31		to	20.06
	12/31/2009(1)		78,140		1.03	to		1.03		80,470		—			1.25		to	2.30			4.55		to	4.42
Invesco V.I. Basic Value
	12/31/2010		26,145,840		0.93	to		0.70		23,894,883		0.35			1.25		to	2.30			5.62		to	4.54
	12/31/2009		28,936,665		0.88	to		0.67		25,112,242		1.27			1.25		to	2.30			45.92		to	44.42
	12/31/2008		29,192,375		0.60	to		0.47		17,407,911		0.45			1.25		to	2.30			(52.50	)	to	(52.99	)
	12/31/2007		37,303,273		1.27	to		1.57		46,936,446		0.31			1.25		to	2.30			0.11		to	(0.93	)
	12/31/2006		44,971,961		1.27	to		1.58		56,640,792		0.12			1.25		to	2.30			11.55		to	10.41

297

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

Subaccount	Year Ended	Units		Unit FairValue 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
Invesco V.I. Capital Appreciation
	12/31/2010		7,006,015	$	1.01	to	$	0.77	$	6,943,507		0.51	%		1.25	%	to	2.30	%		13.78	%	to	12.62	%
	12/31/2009		6,994,598		0.89	to		0.69		6,110,262		0.30			1.25		to	2.30			19.23		to	18.00
	12/31/2008		6,692,362		0.75	to		0.58		4,921,070		—			1.25		to	2.30			(43.34	)	to	(43.92	)
	12/31/2007		7,509,747		1.32	to		1.52		9,780,412		—			1.25		to	2.30			10.35		to	9.21
	12/31/2006		9,306,881		1.20	to		1.39		11,023,632		—			1.25		to	2.30			4.75		to	3.68
AllianceBernstein Growth & Income
	12/31/2010		42,257,024		0.98	to		0.76		41,152,047		—			1.25		to	2.30			11.41		to	10.26
	12/31/2009		45,688,754		0.88	to		0.69		39,961,523		3.55			1.25		to	2.30			18.86		to	17.64
	12/31/2008		53,322,418		0.74	to		0.59		39,258,756		1.78			1.25		to	2.30			(41.43	)	to	(42.03	)
	12/31/2007		63,800,491		1.26	to		1.59		80,455,929		1.21			1.25		to	2.30			3.56		to	2.49
	12/31/2006		77,291,684		1.22	to		1.56		94,343,570		1.14			1.25		to	2.30			15.54		to	14.36
AllianceBernstein Large Cap Growth
	12/31/2010		27,181,119		0.95	to		0.91		23,360,452		0.27			1.25		to	2.30			8.48		to	7.36
	12/31/2009		27,519,775		0.87	to		0.84		21,517,625		—			1.25		to	2.30			35.41		to	34.02
	12/31/2008		28,070,368		0.65	to		0.63		16,214,023		—			1.25		to	2.30			(40.57	)	to	(41.18	)
	12/31/2007		32,264,687		0.95	to		1.47		31,248,333		—			1.25		to	2.30			12.20		to	11.05
	12/31/2006		38,492,899		0.85	to		1.32		33,301,544		—			1.25		to	2.30			(1.86	)	to	(2.87	)
AllianceBernstein Balanced Wealth Strategy
	12/31/2010		13,600,781		1.35	to		1.32		18,296,754		2.29			1.50		to	2.65			8.67		to	7.45
	12/31/2009		8,104,630		1.24	to		1.23		10,047,749		0.90			1.50		to	2.65			22.61		to	21.24
	12/31/2008(1)		154,287		1.01	to		1.01		156,332		—			1.50		to	2.65			1.33		to	1.17
Janus Aspen-Enterprise
	12/31/2010		20,845,628		1.26	to		1.03		20,135,138		—			1.25		to	2.30			23.97		to	22.70
	12/31/2009		24,204,454		1.02	to		0.84		18,789,785		—			1.25		to	2.30			42.66		to	41.19
	12/31/2008		27,900,139		0.71	to		0.59		15,433,329		0.06			1.25		to	2.30			(44.55	)	to	(45.13	)
	12/31/2007		31,800,279		1.29	to		2.12		30,998,592		0.63			1.25		to	2.30			20.23		to	18.99
	12/31/2006		26,432,690		1.07	to		1.79		21,816,991		—			1.25		to	2.30			11.91		to	10.76
Janus Aspen Perkins-Mid Cap Value
	12/31/2010		2,114,548		1.55	to		1.48		3,208,163		0.50			1.25	%	to	1.65			13.94		to	13.49
	12/31/2009		2,351,020		1.36	to		1.31		3,137,832		0.34			1.25	%	to	1.65			31.28		to	30.76
	12/31/2008		2,704,031		1.04	to		1.00		2,755,067		0.38			1.25		to	1.65			(28.79	)	to	(29.07	)
	12/31/2007		3,455,868		1.45	to		1.41		4,953,039		4.50			1.25		to	1.65			5.84		to	5.42
	12/31/2006		4,025,469		1.37	to		1.34		5,460,464		0.99			1.25		to	1.65			13.65		to	13.20
Janus Aspen-Worldwide
	12/31/2010		54,023,820		0.86	to		0.82		42,819,135		0.49			1.25		to	2.30			14.10		to	12.92
	12/31/2009		51,760,069		0.75	to		0.73		35,455,082		1.32			1.25		to	2.30			35.71		to	34.31
	12/31/2008		45,032,767		0.55	to		0.54		22,746,673		0.96			1.25		to	2.30			(45.49	)	to	(46.06	)
	12/31/2007		53,084,461		1.02	to		1.60		49,676,967		0.58			1.25		to	2.30			8.01		to	6.89
	12/31/2006		53,055,483		0.94	to		1.50		46,129,552		1.63			1.25		to	2.30			16.48		to	15.29

298

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

Subaccount	Year Ended	Units		Unit FairValue 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
MFS® New Discovery
	12/31/2010		28,497,686	$	1.56	to	$	1.22	$	43,511,961		—	%		1.25	%	to	2.30	%		34.26	%	to	32.89	%
	12/31/2009		21,450,984		1.16	to		0.92		24,479,755		—			1.25		to	2.30			60.91		to	59.26
	12/31/2008		15,212,879		0.72	to		0.58		10,829,606		—			1.25		to	2.30			(40.27	)	to	(40.89	)
	12/31/2007		18,806,193		1.21	to		1.49		22,480,559		—			1.25		to	2.30			0.98		to	(0.06	)
	12/31/2006		23,349,833		1.20	to		1.49		27,690,404		—			1.25		to	2.30			11.54		to	10.40
MFS® Total Return
	12/31/2010		51,506,909		1.28	to		0.94		64,112,949		2.60			1.25		to	2.30			8.28		to	7.17
	12/31/2009		54,883,691		1.18	to		0.88		63,388,306		3.38			1.25		to	2.30			16.27		to	15.08
	12/31/2008		56,745,490		1.02	to		0.76		56,591,135		2.93			1.25		to	2.30			(23.28	)	to	(24.07	)
	12/31/2007		65,867,193		1.32	to		1.35		86,022,424		2.38			1.25		to	2.30			2.65		to	1.59
	12/31/2006		74,360,412		1.29	to		1.33		94,872,229		2.12			1.25		to	2.30			10.25		to	9.12
Fidelity VIP Contrafund®
	12/31/2010		141,720,415		1.56	to		0.90		196,820,478		1.05			1.25		to	2.30			15.48		to	14.30
	12/31/2009		145,193,887		1.35	to		0.79		174,641,929		1.18			1.25		to	2.30			33.80		to	32.42
	12/31/2008		156,031,898		1.01	to		0.60		140,544,144		0.75			1.25		to	2.30			(43.40	)	to	(43.99	)
	12/31/2007		171,085,042		1.79	to		1.98		273,945,002		0.73			1.25		to	2.30			15.85		to	14.65
	12/31/2006		186,851,007		1.54	to		1.72		258,933,649		0.99			1.25		to	2.30			10.06		to	8.93
Fidelity VIP Equity-Income
	12/31/2010		45,311,325		1.10	to		0.78		51,139,889		1.67			1.25		to	2.30			13.50		to	12.33
	12/31/2009		45,541,010		0.97	to		0.69		45,516,351		2.05			1.25		to	2.30			28.28		to	26.96
	12/31/2008		52,994,411		0.76	to		0.55		41,416,391		2.09			1.25		to	2.30			(43.52	)	to	(44.11	)
	12/31/2007		64,595,023		1.34	to		1.63		89,649,119		1.51			1.25		to	2.30			0.01		to	(1.02	)
	12/31/2006		77,433,512		1.34	to		1.65		107,807,608		3.03			1.25		to	2.30			18.45		to	17.24
Fidelity VIP Growth
	12/31/2010		35,879,672		0.96	to		0.85		32,888,102		0.03			1.25		to	2.30			22.33		to	21.08
	12/31/2009		32,483,226		0.78	to		0.70		24,205,981		0.20			1.25		to	2.30			26.38		to	25.09
	12/31/2008		38,408,158		0.62	to		0.56		22,538,053		0.55			1.25		to	2.30			(47.96	)	to	(48.50	)
	12/31/2007		43,691,952		1.09	to		1.66		49,196,249		0.36			1.25		to	2.30			25.09		to	23.80
	12/31/2006		38,679,255		0.87	to		1.34		34,871,994		0.17			1.25		to	2.30			5.26		to	4.18
Fidelity VIP Growth Opportunities
	12/31/2010		2,126,593		1.00	to		0.75		1,991,506		—			1.25		to	1.65			21.95		to	21.47
	12/31/2009		2,509,398		0.82	to		0.62		1,911,152		0.23			1.25		to	1.65			43.67		to	43.10
	12/31/2008		2,952,425		0.57	to		0.43		1,565,128		0.12			1.25		to	1.65			(55.69	)	to	(55.87	)
	12/31/2007		3,556,225		1.28	to		0.98		4,275,368		—			1.25		to	1.65			21.38		to	20.90
	12/31/2006		4,382,176		1.06	to		0.81		4,366,730		0.49			1.25		to	1.65			3.82		to	3.42

299

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

Subaccount	Year Ended	Units		Unit FairValue 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
Fidelity VIP Mid Cap
	12/31/2010		100,875,894	$	2.37	to	$	1.05	$	230,158,537		0.12	%		1.25	%	to	2.30	%		26.99	%	to	25.68	%
	12/31/2009		106,128,511		1.87	to		0.83		192,489,020		0.45			1.25		to	2.30			38.03		to	36.61
	12/31/2008		123,204,417		1.35	to		0.61		163,375,898		0.24			1.25		to	2.30			(40.36	)	to	(40.97	)
	12/31/2007		150,490,168		2.27	to		2.41		336,300,424		0.49			1.25		to	2.30			13.91		to	12.73
	12/31/2006		178,739,314		1.99	to		2.14		352,519,842		0.18			1.25		to	2.30			11.02		to	9.88
Fidelity VIP Value Strategies
	12/31/2010		42,840,562		1.47	to		0.89		61,568,664		0.30			1.25		to	2.30			24.78		to	23.50
	12/31/2009		45,271,627		1.18	to		0.72		52,231,295		0.36			1.25		to	2.30			55.21		to	53.62
	12/31/2008		49,976,391		0.76	to		0.47		37,313,777		0.49			1.25		to	2.30			(51.89	)	to	(52.39	)
	12/31/2007		62,273,935		1.58	to		1.91		97,289,208		0.58			1.25		to	2.30			4.13		to	3.06
	12/31/2006		70,643,721		1.52	to		1.86		106,323,014		0.36			1.25		to	2.30			14.58		to	13.41
Fidelity VIP Balanced
	12/31/2010		29,308,698		1.06	to		1.03		30,897,515		1.81			1.25		to	2.45			16.30		to	14.94
	12/31/2009		19,434,180		0.91	to		0.89		17,650,080		2.45			1.25		to	2.45			36.62		to	35.01
	12/31/2008(1)		5,787,687		0.67	to		0.66		3,855,651		4.07			1.25		to	2.45			(33.33	)	to	(33.85	)
Franklin Income Securities
	12/31/2010		51,012,140		1.01	to		0.97		50,911,633		6.43			1.25		to	2.30			11.28		to	10.14
	12/31/2009		32,281,661		0.90	to		0.88		28,997,286		7.29			1.25		to	2.30			33.92		to	32.55
	12/31/2008		15,807,606		0.67	to		0.66		10,626,894		5.50			1.25		to	2.30			(30.53	)	to	(31.24	)
	12/31/2007(1)		6,760,864		0.97	to		1.00		6,556,928		0.26			1.25		to	2.30			(2.86	)	to	(3.53	)
Mutual Shares Securities
	12/31/2010		21,478,554		0.82	to		0.79		17,488,056		1.65			1.25		to	2.30			9.82		to	8.70
	12/31/2009		13,129,790		0.75	to		0.73		9,746,295		2.01			1.25		to	2.30			24.49		to	23.22
	12/31/2008		9,560,602		0.60	to		0.59		5,714,459		3.08			1.25		to	2.30			(37.89	)	to	(38.53	)
	12/31/2007(1)		7,163,394		0.97	to		1.01		6,905,863		0.01			1.25		to	2.30			(3.46	)	to	(4.12	)
Templeton Foreign Securities
	12/31/2010		44,712,323		0.91	to		0.88		40,497,956		1.82			1.25		to	2.30			7.07		to	5.97
	12/31/2009		36,456,694		0.85	to		0.83		30,890,820		2.65			1.25		to	2.30			35.35		to	33.96
	12/31/2008		20,514,605		0.63	to		0.62		12,872,321		2.57			1.25		to	2.30			(41.12	)	to	(41.72	)
	12/31/2007(1)		14,131,536		1.07	to		1.09		15,096,177		0.18			1.25		to	2.30			7.01		to	6.28
Franklin Templeton Founding Funds Allocation
	12/31/2010		38,517,902		1.38	to		1.35		53,008,336		2.83			1.45		to	2.60			8.66		to	7.45
	12/31/2009		20,157,488		1.27	to		1.25		25,548,689		5.15			1.45		to	2.60			28.21		to	26.77
	12/31/2008(1)		497,588		0.99	to		0.99		492,793		3.36			1.45		to	2.60			(0.94	)	to	(1.10	)
American Funds – Asset Allocation Fund
	12/31/2010		35,193,817		1.12	to		1.10		39,248,180		3.78			1.60		to	2.75			10.73		to	9.50
	12/31/2009(1)		737,632		1.01	to		1.01		743,695		0.15			1.60		to	2.75			1.88		to	1.75

300

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

Subaccount	Year Ended	Units		Unit FairValue 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
American Funds – Bond Fund
	12/31/2010		10,576,590	$	1.04	to	$	1.03	$	10,999,546		5.03	%		1.60	%	to	2.75	%		4.77	%	to	3.60	%
	12/31/2009(1)		504,436		0.99	to		0.99		501,383		1.15			1.60		to	2.75			(0.68	)	to	(0.81	)
American Funds – Growth Fund
	12/31/2010		9,149,836		1.17	to		1.16		10,710,517		1.19			1.60		to	2.60			16.81		to	15.68
	12/31/2009(1)		220,128		1.00	to		1.00		220,838		0.36			1.60		to	2.60			1.70		to	1.59
American Funds – Growth–Income Fund
	12/31/2010		6,347,241		1.11	to		1.09		7,014,042		2.72			1.60		to	2.60			9.67		to	8.61
	12/31/2009(1)		79,507		1.01	to		1.01		80,190		2.23			1.60		to	2.60			2.21		to	2.10
American Funds – International Fund
	12/31/2010		7,724,135		1.04	to		1.02		7,988,711		3.37			1.60		to	2.60			5.55		to	4.52
	12/31/2009(1)		79,326		0.98	to		0.98		77,792		1.26			1.60		to	2.60			(0.22	)	to	(0.33	)
GE Investments Total Return Fund
	12/31/2010		7,235,313		1.08	to		1.07		7,816,477		2.64			1.50		to	2.65			7.75		to	6.54
	12/31/2009(1)		157,681		1.00	to		1.00		158,292		1.77			1.50		to	2.65			1.54		to	1.41
MTB Managed Allocation Fund-Moderate Growth II
	12/31/2010		507,043		1.17	to		1.10		594,558		0.65			1.30		to	2.30			9.14		to	8.07
	12/31/2009		690,435		1.08	to		1.02		741,634		0.01			1.30	%	to	2.30			24.01		to	22.80
	12/31/2008		877,931		0.87	to		0.83		759,948		1.13			1.30		to	2.30			(29.99	)	to	(30.68	)
	12/31/2007		1,313,746		1.24	to		1.20		1,624,021		2.04			1.30		to	2.30			5.51		to	4.47
	12/31/2006		1,399,049		1.17	to		1.15		1,640,423		2.48			1.30		to	2.30			9.01		to	7.94
BlackRock Basic Value V.I.
	12/31/2010		19,062,536		1.27	to		1.46		30,418,099		1.60			1.25		to	2.30			11.41		to	10.27
	12/31/2009		21,465,550		1.14	to		1.33		30,704,585		2.07			1.25		to	2.30			29.52		to	28.19
	12/31/2008		24,774,917		0.88	to		1.04		27,222,322		2.15			1.25		to	2.30			(37.55	)	to	(38.20	)
	12/31/2007		31,124,324		1.41	to		1.67		54,959,003		1.35			1.25		to	2.30			0.56		to	(0.48	)
	12/31/2006		39,810,741		1.40	to		1.68		70,276,190		1.53			1.25		to	2.30			20.36		to	19.13
BlackRock High Income V.I.
	12/31/2010		5,412,329		1.80	to		1.56		9,521,080		7.69			1.25		to	2.30			13.94		to	12.77
	12/31/2009		5,838,853		1.58	to		1.38		9,048,158		9.33			1.25		to	2.30			54.69		to	53.10
	12/31/2008		6,376,867		1.02	to		0.90		6,401,759		9.40			1.25		to	2.30			(30.05	)	to	(30.77	)
	12/31/2007		7,327,648		1.46	to		1.30		10,522,866		7.81			1.25		to	2.30			1.15		to	0.10
	12/31/2006		9,530,758		1.44	to		1.30		13,554,917		7.45			1.25		to	2.30			8.11		to	7.00
BlackRock Global Allocation V.I.
	12/31/2010		16,160,417		2.22	to		2.32		26,976,246		1.16			1.25		to	2.30			8.70		to	7.58
	12/31/2009		17,739,388		2.04	to		2.16		27,612,347		1.90			1.25		to	2.30			19.71		to	18.48
	12/31/2008		18,420,989		1.71	to		1.82		24,025,516		2.48			1.25		to	2.30			(20.42	)	to	(21.24	)
	12/31/2007		13,390,022		2.14	to		2.31		21,415,424		3.01			1.25		to	2.30			15.56		to	14.37
	12/31/2006		12,154,479		1.86	to		2.02		16,596,816		2.96			1.25		to	2.30			15.10		to	13.92

301

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

Subaccount	Year Ended	Units	Unit FairValue 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
Huntington VA Dividend Capture
	12/31/2010	627,981	$	0.94	to	$	0.91	$	590,931		5.56	%		1.30	%	to	2.30	%		13.65	%	to	12.54	%
	12/31/2009	169,080		0.83	to		0.81		140,072		—			1.30		to	2.30			23.50		to	22.29
	12/31/2008	47,418		0.67	to		0.66		31,769		12.63			1.30		to	2.30			(29.01	)	to	(29.71	)
	12/31/2007(1)	18,278		0.95	to		0.94		17,317		—			1.30		to	2.30			(5.23	)	to	(5.51	)
Huntington VA Growth
	12/31/2010	387,784		0.83	to		0.80		319,095		0.19			1.30		to	2.30			8.45		to	7.40
	12/31/2009	143,438		0.76	to		0.74		108,693		—			1.30		to	2.30			14.47		to	13.35
	12/31/2008	87,352		0.67	to		0.66		57,838		1.51			1.30		to	2.30			(38.71	)	to	(39.31	)
	12/31/2007(1)	7,929		1.09	to		1.08		8,596		—			1.30		to	2.30			8.60		to	8.28
Huntington VA Income Equity
	12/31/2010	114,543		0.80	to		0.77		90,986		3.10			1.30		to	2.30			10.36		to	9.28
	12/31/2009	87,478		0.72	to		0.70		63,043		—			1.30		to	2.30			20.05		to	18.88
	12/31/2008	19,602		0.60	to		0.59		11,767		6.99			1.30		to	2.30			(38.64	)	to	(39.24	)
	12/31/2007(1)	11,874		0.98	to		0.98		11,616					1.30		to	2.30			(2.17	)	to	(2.47	)
Huntington VA International Equity
	12/31/2010	2,184,422		0.90	to		0.87		1,956,123		1.47			1.30		to	2.30			7.78		to	6.73
	12/31/2009	761,629		0.83	to		0.81		633,019		0.05			1.30		to	2.30			31.76		to	30.47
	12/31/2008	270,243		0.63	to		0.62		170,367		4.28			1.30		to	2.30			(41.32	)	to	(41.90	)
	12/31/2007(1)	21,371		1.08	to		1.07		23,012		—			1.30		to	2.30			7.81		to	7.48
Huntington VA Macro 100
	12/31/2010	129,864		0.84	to		0.82		109,128		1.16			1.30		to	2.30			12.65		to	11.55
	12/31/2009	3,368		0.75	to		0.73		2,521		—			1.30		to	2.30			20.30		to	19.13
	12/31/2008	—		0.62	to		0.61		—		—			1.30		to	2.30			(34.76	)	to	(35.40	)
	12/31/2007(1)	—		0.95	to		0.95		—		—			1.30		to	2.30			(4.65	)	to	(4.94	)
Huntington VA Mid Corp America
	12/31/2010	531,787		0.99	to		0.96		525,304		0.79			1.30		to	2.30			21.23		to	20.04
	12/31/2009	200,640		0.82	to		0.80		163,727		—			1.30		to	2.30			32.51		to	31.21
	12/31/2008	32,319		0.62	to		0.61		19,905		1.41			1.30		to	2.30			(39.62	)	to	(40.22	)
	12/31/2007(1)	17,316		1.02	to		1.02		17,673		—			1.30		to	2.30			2.07		to	1.76
Huntington VA Mortgage Securities
	12/31/2010	1,024,937		1.10	to		1.06		1,122,860		2.47			1.30		to	2.30			3.54		to	2.53
	12/31/2009	525,943		1.06	to		1.04		556,724		—			1.30		to	2.30			4.11		to	3.09
	12/31/2008	315,384		1.02	to		1.01		320,353		9.37			1.30		to	2.30			0.83		to	(0.15	)
	12/31/2007(1)	94,524		1.01	to		1.01		95,464		—			1.30		to	2.30			1.03		to	0.73
Huntington VA New Economy
	12/31/2010	293,674		0.76	to		0.73		221,084		0.10			1.30		to	2.30			14.48		to	13.36
	12/31/2009	173,909		0.66	to		0.65		114,689		—			1.30	%	to	2.30			32.92		to	31.62
	12/31/2008	53,994		0.50	to		0.49		26,859		1.18			1.30		to	2.30			(53.26	)	to	(53.72	)
	12/31/2007(1)	20,091		1.07	to		1.06		21,397		—			1.30		to	2.30			6.50		to	6.18

302

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

Subaccount	Year Ended	Units	Unit FairValue 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
Huntington VA Real Strategies
	12/31/2010	722,168	$	0.93	to	$	0.90	$	670,398		0.26	%		1.30	%	to	2.30	%		20.58	%	to	19.41	%
	12/31/2009	254,198		0.77	to		0.76		195,817		—			1.30		to	2.30			33.01		to	31.71
	12/31/2008	43,826		0.58	to		0.57		25,378		2.15			1.30		to	2.30			(49.66	)	to	(50.15	)
	12/31/2007(1)	8,485		1.15	to		1.15		9,793		—			1.30		to	2.30			15.47		to	15.12
Huntington VA Rotating Markets
	12/31/2010	708,867		0.83	to		0.81		587,623		1.55			1.30		to	2.30			5.96		to	4.93
	12/31/2009	93,483		0.79	to		0.77		73,042		—			1.30		to	2.30			31.66		to	30.38
	12/31/2008	14,465		0.60	to		0.59		8,632		2.59			1.30		to	2.30			(42.81	)	to	(43.37	)
	12/31/2007(1)	17,218		1.04	to		1.04		17,973		—			1.30		to	2.30			4.39		to	4.08
Huntington VA Situs
	12/31/2010	1,858,641		0.98	to		0.95		1,818,355		0.47			1.30		to	2.30			27.95		to	26.70
	12/31/2009	731,132		0.77	to		0.75		559,420		—			1.30		to	2.30			31.24		to	29.96
	12/31/2008	292,737		0.58	to		0.58		170,683		0.36			1.30		to	2.30			(41.99	)	to	(42.56	)
	12/31/2007(1)	47,445		1.01	to		1.00		47,768		0.88			1.30		to	2.30			0.72		to	0.41
Huntington VA Balanced Allocation
	12/31/2010	13,139,744		1.30	to		1.27		17,021,932		0.13			1.30		to	2.45			9.02		to	7.80
	12/31/2009	3,034,212		1.19	to		1.18		3,608,610		0.23			1.30		to	2.45			16.28		to	14.98
	12/31/2008(1)	27,365		1.02	to		1.02		28,018		0.21			1.30		to	2.45			2.42		to	2.25

* These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the Mutual Fund, net ofof management fees assessed by the fundfund manager, divideddivided 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 Separate Account, 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 except for those subaccounts indicated as being a partial year in the Organization and Summary of Significant Accounting Policies footnote and new expense ratios as follows:

Expense Ratio			Inception Date
	2.35	%		May 1, 2008
	2.45	%		January 21, 2008
	1.95	%		January 21, 2008
	1.25	%		May 1, 2007

303

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

4. Financial Highlights (continued)

There are subaccounts that have total return ranges outside of the range indicated above. Following is the list of the subaccounts and their corresponding lowest total return and highest total return.

Subaccount	2010 Total Return Range
Transamerica Balanced VP	12.42% to 22.59%
Subaccount	2009 Total Return Range
Transamerica BlackRock Large Cap Value VP	11.16% to 23.06%
Transamerica PIMCO Total Return VP	10.83% to 14.60%
Transamerica Index 50 VP - SC	0.39% to 15.09%
Transamerica Index 75 VP - SC	1.01% to 21.66%
Transamerica Efficient Markets VP - SC	0.48% to 16.35%
Transamerica BlackRock Tactical Allocation VP -SC	0.90% to 20.85%
Subaccount	2008 Total Return Range
Transamerica Asset Allocation - Conservative VP	(23.18)% to (2.03)%
Transamerica Asset Allocation - Moderate VP	(27.86)% to (1.12)%
Transamerica Asset Allocation -Moderate Growth VP	(34.44)% to (3.88)%
Transamerica Small/Mid Cap Value VP	(42.06)% to (18.11)%
Transamerica Balanced VP	(34.10)% to (6.98)%
Transamerica International Moderate Growth VP -SC	(37.75)% to (31.54)%

304

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

5. Administrative and Mortality and Expense Risk Charges

TLIC deducts a daily administrative charge equal to an annual rate of .15% of the contract owner’s account for administrative expenses. TLIC also deducts an annual charge, not to exceed $35, proportionately from the subaccounts’ unit values. An annual charge ranging from 1.10% to 2.30% is deducted (based on the death benefit selected) from the unit values of the subaccounts of the Separate Account for TLIC’s assumption of certain mortality and expense risks incurred in connection with the contract. The charge is assessed daily based on the net asset value of the Mutual Fund. Charges for administrative and mortality and expense risk are an expense of the Separate Account. Charges reflected above are those currently assessed and may be subject to change. Contract owners should see their actual policy and any related attachments to determine their specific charges.

In addition to M&E, the following subaccounts are assessed a daily charge for fund facilitation fees:

	Additional Fund
Subaccount	Facilitation Fee Assessed
AllianceBernstein Balanced Wealth Strategy		0.20	%
Franklin Templeton Founding Funds Allocation		0.15	%
American Funds – Asset Allocation Fund		0.30	%
American Funds – Bond Fund		0.30	%
American Funds – Growth Fund		0.30	%
American Funds – Growth–Income Fund		0.30	%
American Funds – International Fund		0.30	%
GE Investments Total Return Fund		0.20	%

6. Income Taxes

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

7. Dividend Distributions

Dividends are not declared by the Separate Account, since the increase in the value of the underlying investment in the Mutual Funds is reflected daily in the accumulation unit price used to calculate the equity value within the Separate Account. Consequently, a dividend distribution by the Mutual Funds does not change either the accumulation unit price or equity values within the Separate Account.

305

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2010

8. Fair Value Measurements and Fair Value Hierarchy

ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the nature of inputs used to measure fair value and enhances disclosure requirements for fair value measurements.

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

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

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

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

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

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

c) Inputs other than quoted market prices that are observable

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

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

All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon daily unadjusted quoted prices, therefore are considered Level 1.

9. Subsequent Events

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

306

PART C

OTHER INFORMATION

Item 24.    Financial Statements and Exhibits

	(a)  Financial Statements
	All required financial statements are included in Part B of this Registration Statement.
	(b)  Exhibits:
(1)	(a)		Resolution of the Board of Directors of PFL Life Insurance Company authorizing establishment of the Separate Account. Note 1.
	(b)		Authorization Changing Name of the Separate Account. Note 11.
(2)			Not Applicable.
(3)	(a)		Principal Underwriting Agreement by and between PFL Life Insurance Company, on its own behalf and on the behalf of the Separate Account, and AEGON USA Securities, Inc. Note 6.
	(a)	(1)	Principal Underwriting Agreement by and between PFL Life Insurance Company on its own behalf and on the behalf of the Separate Account and AFSG Securities Corporation. Note 13.
	(a)	(2)	Termination of Principal Underwriting Agreement by and between AEGON USA Securities, Inc., formerly known as, MidAmerica Management Corporation, and PFL Life Insurance Company on its own behalf and on the behalf of PFL Endeavor Variable Annuity Account. Note 15.
	(a)	(3)	Form of Amended and Reinstated Principal Underwriting Agreement by and between AFSG Securities Corporation and Transamerica Life Insurance Company on its behalf and on behalf of the separate investment accounts. Note 30.
	(a)	(4)	Amendment No. 8 and Novation to Amended and Restated Principal Underwriting Agreement. Note 42.
	(a)	(5)	Amendment No. 10 to Amended and Restated Principal Underwriting Agreement. Note 47.
	(a)	(6)	Amended and Reinstated Principal Underwriting Agreement. Note 55.
	(b)		Form of Broker/Dealer Supervision and Sales Agreement by and between AFSG Securities Corporation, and the Broker/Dealer. Note 13.
	(b)	(1)	Form of Life Insurance Company Product Sales Agreement (TCI) Note 44.
(4)	(a)		Form of Policy for the Endeavor Platinum Variable Annuity. Note 7.
	(b)		Amended pages to Form of Policy for Endeavor Platinum Variable Annuity. Note 8.
	(c)		Form of Policy Endorsement (Death Benefits). Note 10.
	(d)		Form of Policy for the Endeavor Platinum Variable Annuity. Note 12.
	(e)		Form of Policy Endorsement (Nursing Care). Note 12.
	(f)		Form of Policy for the Endeavor Platinum Variable Annuity. Note 13.
	(g)		Form of Policy Endorsement (New Separate Accounts and Annuity Commencement Date). Note 13.
	(h)		Form of Policy Rider (GMIB). Note 15.
	(i)		Form of Policy Rider (Additional Death Distribution). Note 24.
	(j)		Form of Policy Rider (Managed Annuity Program). Note 26.
	(k)		Form of Policy Rider (MAP II). Note 31.
	(l)		Form of Policy Rider (GPS). Note 37.
	(m)		Form of Policy Rider (5 For life). Note 37.
	(n)		Form of Policy Rider (ADD+). Note 37.
	(o)		Form of Policy Rider (New GMWB). Note 39.
	(p)		Form of Policy Rider (5 for Life - Growth - without Death Benefit). Note 40.
	(q)		Form of Policy Rider (5 for Life - Growth - with Death Benefit). Note 40.
	(r)		Form of Rider (Income Select for Life). Note 41.
	(s)		Form of Rider (Double Enhanced). Note 43.
	(t)		Form of Rider (Retirement Income Choice). Note 43.
	(u)		Form of Endorsement (Fund Facilitation Fee). Note 46.
	(v)		Form of Policy Rider (Retirement Income Choice - Double Withdrawal Base Benefit). Note. 46.
	(w)		Form of Policy Rider (Retirement Income Choice 1.2). Note 49.
	(x)		Form of Policy Rider (Retirement Income Choice 1.4). Note 50.
	(y)		Form of Policy Rider (Income Link). Note 53.
	(z)		Form of Policy Rider (RIM). Note 56
(5)	(a)		Form of Application for the Endeavor Platinum Variable Annuity. Note 12.
	(b)		Form of Application for the Endeavor Platinum Variable Annuity. Note 13.
	(c)		Form of Application for the Endeavor Platinum Variable Annuity. Note 15.
	(d)		Form of Application for the Transamerica Freedom Variable Annuity (formerly Endeavor Platinum Variable Annuity) Note 24.
	(e)		Form of Application for Transamerica Freedom. Note 32.
	(f)		Form of Application. Note 33
	(g)		Form of Application. Note 50.
(6)	(a)		Articles of Incorporation of PFL Life Insurance Company. Note 2.
	(b)		ByLaws of PFL Life Insurance Company. Note 2.
(7)			Reinsurance Agreement Note 36.
	(a)		Reinsurance agreement between Transamerica Life Insurance & Annuity Company and Swiss RE Life & Health America Inc. dated January 2, 1998. Note 49.
	(b)		Reinsurance agreement between Transamerica Occidental Life Insurance Company and North American Reassurance Company dated July 1, 1994. Note 49.
	(c)		Reinsurance Agreement No. FUV-1 between Transamerica Life Insurance Company and Union Hamilton Reinsurance Limited dated April 1, 2001. Note 49.
	(c)	1	Reinsurance agreement Amendment No. 1 to agreement FUV-1 between Transamerica Life Insurance Company and Union Hamilton Reinsurance Limited dated April 1, 2001. Note 49.
	(d)		Reinsurance Agreement No. FUV-011 between Transamerica Life Insurance Company and Scottish Annuity & Life International Insurance Company (Bermuda) Limited initial dated April 1, 2001, Amended and Restated - May 1, 2007. Note 49.
	(e)		Reinsurance Agreement between Transamerica Life Insurance Company and Transamerica International RE (Bermuda) LTD dated December 31, 2008. Note 49.
(7)	(e)	(1)	Amendment No. 1 to Reinsurance Agreement between Transamerica Life Insurance Company and Transamerica International RE (Bermuda) LTD dated December 30, 2008. Note 44.
(7)	(e)	(2)	Amendment No. 2 to Reinsurance Agreement between Transamerica Life Insurance Company and Transamerica International RE (Bermuda) LTD dated December 29, 2009. Note 44.
(7)	(e)	(3)	Amendment No. 3 to Reinsurance Agreement between Transamerica Life Insurance Company and Transamerica International RE (Bermuda) LTD dated May 27, 2010. Note 55.
	(f)		Reinsurance Agreement between American United Life Insurance Company and Transamerica Life Insurance Company dated July 1, 2007. Note 49.
	(g)		Reinsurance Agreement between Union Hamilton Reinsurance Ltd. And Scottish Annuity & Life International Insurance Company (Bermuda) Ltd. And Transamerica Life Insurance Company dated June 30, 2008. Note 52.
(8)	(a)		Participation Agreement by and between PFL Life Insurance Company and Endeavor Series Trust.

C-1

			Note 3.
	(b)		Participation Agreement by and between PFL Life Insurance Company and the WRL Growth Portfolio of WRL Series Fund, Inc. Note 4.
(8)	(b)	(1)	Amendment No. 12 to Participation Agreement among WRL Series Fund, Inc., PFL Life Insurance Company, AUSA Life Insurance Company, Inc., and Peoples Benefit Life Insurance Company. Note 17.
(8)	(b)	(2)	Amendment No. 15 to Participation Agreement among WRL Series Fund, Inc., PFL Life Insurance Company, AUSA Life Insurance Company, Inc., and Peoples Benefit Life Insurance Company. Note 22.
	(b)	(3)	Amendment No. 17 to Participation Agreement among WRL Series Fund, Inc., Transamerica Life Insurance Company (formerly PFL Life Insurance Company), AUSA Life Insurance Company, Inc., Peoples Benefit Life Insurance Company and Transamerica Occidental Life Insurance Company. Note 24.
	(b)	(4)	Amendment No. 20 to Participation Agreement among AEGON/Transamerica Series Fund, Inc., Transamerica Life Insurance Company, AUSA Life Insurance Company, Inc., Peoples Benefit Life Insurance Company, Transamerica Occidental Life Insurance Company and Transamerica Life Insurance and Annuity Company. Note 34.
(8)	(b)	(5)	Amendment No. 31 to Participation Agreement (AEGON/Transamerica). Note 36.
(8)	(b)	(6)	Amendment No. 32 to Participation Agreement (AEGON/Transamerica). Note 37.
	(b)	(7)	Amendment No. 36 to Participation Agreement (Transamerica Series Trust). Note 45.
	(b)	(8)	Amendment No. 38 to Participation Agreement (TST). Note 47.
	(b)	(9)	Amendment No. 40 to Participation Agreement (TST). Note 49.
	(b)	(10)	Amendment No. 41 to Participation Agreement (TST). Note 51.
	(b)	(11)	Amendment No. 42 to Participation Agreement (TST). Note 52.
	(b)	(12)	Amendment No. 43 to Participation Agreement (TST). Note 54.
	(b)	(13)	Amendment No. 44 to Participation Agreement (TST). Note 56
	(c)		Administrative Services Agreement by and between PFL Life Insurance Company and State Street Bank and Trust Company (assigned to Vantage Computer Systems, Inc.). Note 3.
	(d)		Amendment and Assignment of Administrative Services Agreement. Note 4.
	(e)		Second Amendment to Administrative Services Agreement. Note 5.
	(f)		Amendment to Participation Agreement by and between PFL Life Insurance Company and Endeavor Series Trust. Note 12.
(8)	(f)	(1)	Amendment No. 6 to Participation Agreement by and between PFL Life Insurance Company, Endeavor Management Co. and Endeavor Series Trust. Note 17.
(8)	(f)	(2)	Amendment to Schedule A of the Participation Agreement by and between PFL Life Insurance Company and Endeavour Series Trust. Note 22.
	(f)	(3)	Form of Termination of Participation Agreement among Transamerica Life Insurance Company, AUSA Life Insurance Company, Inc., Peoples Benefit Life Insurance Company, on their own behalf and on behalf of their separate accounts, Endeavor Series Trust and Endeavor Management Co. Note 30.
	(g)		Participation Agreement by and between PFL Life Insurance Company and Transamerica Variable Insurance Fund, Inc. Note 20.
(8)	(g)	(1)	Termination of Participation Agreement (Transamerica). Note 26.
(8)	(g)	(2)	Participation Agreement (Transamerica). Note 26.
(8)	(g)	(3)	Addendum to Participation Agreement

C-2

			(Transamerica). Note 26.
	(h)		Participation Agreement by and between Variable Insurance Product Funds and Variable Insurance Products Fund II, Fidelity Distributors Corporation, and PFL Life Insurance Company, and Addendums thereto. Note 18.
	(h)	(1)	Amended Schedule A to Participation Agreement by and between Variable Insurance Product Funds and Variable Insurance Products Fund II, Fidelity Distributors Corporation, and PFL Life Insurance Company. Note 20.
	(h)	(2)	Form of Amended Schedule A to Participation Agreement by and between Variable Insurance Product Funds and Variable Insurance Products Fund II, Fidelity Distributors Corporation, and Transamerica Life Insurance Company (formerly PFL Life Insurance Company). Note 24.
	(h)	(3)	Amendment No. 4 to Participation Agreement by and between Variable Insurance Products Funds, Fidelity Distributors Corporation and Transamerica Life Insurance Company. Note 25.
	(h)	(4)	Amendment No. 4 to Participation Agreement by and between Variable Insurance Products Fund II, Fidelity Distributors Corporation and Transamerica Life Insurance Company. Note 25.
	(h)	(5)	Amended Schedule A to Participation Agreement by and between Variable Insurance Product Funds and Variable Insurance Products Fund II, Fidelity Distributors Corporation and Transamerica Life Insurance Company. Note 25.
	(i)		Participation Agreement between Variable Insurance Products Fund III, Fidelity Distributors Corporation, and PFL Life Insurance Company. Note 19.
	(i)	(1)	Amended Schedule A to Participation Agreement between Variable Insurance Products Fund III, Fidelity Distributors Corporation, and PFL Life Insurance Company. Note 20.
	(i)	(2)	Amendment No. 2 to Participation Agreement by and between Variable Insurance Products Fund III, Fidelity Distributors Corporation and Transamerica Life Insurance Company. Note 25.
	(i)	(3)	Amended Schedule A to Participation Agreement by and between Variable Insurance Products Fund III, Fidelity Distributors Corporation and Transamerica Life Insurance Company. Note 25.
(8)	(j)		Participation Agreement by and between Janus Aspen Series and PFL Life Insurance Company. Note 21.
(8)	(j)	(1)	Amendment No. 2 to Participation Agreement by and between Janus Aspen Series and PFL Life Insurance Company. Note 22.
(8)	(j)	(2)	Amendment No. 12 to Fund Participation Agreement (Janus Aspen Series). Note 55.
(8)	(k)		Participation Agreement by and among Alliance Variable Products Series Fund, PFL Life Insurance Company, AFSG Securities Corporation. Note 23.
	(k)	(1)	Amendment No. 2 to Participation Agreement by and among Alliance Variable Products Series Fund, Transamerica Life Insurance Company (formerly PFL Life Insurance Company), AFSG Securities Corporation. Note 26.
	(k)	(2)	Amendment to Participation Agreement (Alliance Bernstein). Note 47.
(8)	(l)		Participation Agreement by and among AIM Variable

C-3

			Insurance funds, Inc., AIM Distributors, Inc., PFL Life Insurance Company and AFSG Securities Corporation Note 27.
	(l)	(1)	Form of Amendment No. 7 to Participation Agreement among AIM Variable Insurance Funds, AIM Distributors, Inc., Transamerica Life Insurance Company and AFSG Securities Corporation. Note 30.
(8)	(l)	(2)	Amendment to Participation Agreement (AIM/Invesco). Note 53.
(8)	(1)	(3)	Amendment to Participation Agreement (AIM). Note 55.
(8)	(m)		Participation Agreement among MFS Variable Insurance Trust, PFL Life Insurance Company and Massachusetts Financial Services Company. Note 28.
	(m)	(1)	Partial Termination of Participation Agreement among MFS Variable Insurance Trust, PFL Life Insurance Company and Massachusetts Financial Services Company. Note 29.
	(m)	(2)	Form of Amendment to Participation Agreement by and among MFS Variable Insurance Trust, Massachusetts Financial Services Company, and Transamerica Life Insurance Company. Note 30.
(8)	(n)		Amended and Restated Participation Agreement among Fidelity Distributors Corporation and Transamerica Life Insurance Company. Note 39
(8)	(o)		Amended and Restated Participation Agreement among Franklin/Templeton Distributors, Inc. and Transamerica Life Insurance Company. Note 49.
	(o)	(1)	Amendment No. 3 to Participation Agreement (Franklin Templeton). Note 47.
(8)	(o)	(2)	Amendment No. 4 to Participation Agreement (Franklin Templeton). Note 55.
(8)	(p)		Participation Agreement among Transamerica Life Insurance Company; American Funds Insurance Series, and Capital Research and Management Company (“CRMC”). Note 51.
	(p)	(1)	Amendment No. 2 to Participation Agreement (American Funds). Note 51.
	(p)	(2)	Amendment No. 4 to Participation Agreement (American Funds). Note 51.
(8)	(q)		Participation Agreement By and Among Transamerica Life Insurance Company and GE Investments Funds, Inc. and GE Investment Distributors, Inc. and GE Asset Management Incorporated. Note 51.
(9)	(a)		Opinion and Consent of Counsel. Note 56.
(9)	(b)		Consent of Counsel. Note 56.
(10)	(a)		Consent of Independent Registered Public Accounting Firm. Note 56.
	(b)		Opinion and Consent of Actuary. Note 39.
(11)			Not Applicable.
(12)			Not Applicable.
(13)			Performance Data Calculations. Note 39.
(14)			Powers of Attorney. Craig D. Vermie, Arthur C. Schneider, Eric J. Martin, Brenda K. Clancy, Mark Mullin, Darryl D. Button. Note 56.

Note 1.	Filed with the initial filing of this Form N-4 Registration Statement (File No. 33-56908, 811-06032) on January 8, 1993.
Note 2.	Filed with the initial filing of Form N-4 Registration Statement (File No. 33-33085 on January 23, 1990.
Note 3.	Filed with Pre-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 33-33085) on April 9, 1990.
Note 4.	Filed with Post-Effective Amendment No. 2 to Form N-4 Registration Statement (File No. 33-33085) on April 1, 1991.
Note 5.	Filed with Post-Effective Amendment No. 3 to Form N-4 Registration Statement (File No. 33-33085) on May 1, 1992.
Note 6.	Filed with Post-Effective Amendment No. 5 to Form

C-4

	N-4 Registration Statement (File No. 33-33085) on April 30, 1993.
Note 7.	Filed with Pre-Effective Amendment No. 1 to this Form N-4 Registration Statement (File No. 33-56908) on December 6, 1993.
Note 8.	Filed with Post-Effective Amendment No. 10 to this Form N-4 Registration Statement (File No. 33-56908) on February 28, 1994.
Note 9.	Filed with Post-Effective Amendment No. 12 to this Form N-4 Registration Statement (File No. 33-56908) on April 29, 1994.
Note 10.	Filed with Post-Effective Amendment No. 5 to this Form N-4 Registration Statement (File No. 33-56908) on April 27, 1995.
Note 11.	Filed with Post-Effective Amendment No. 6 to this Form N-4 Registration Statement (File No. 33-56908) on April 24, 1996.
Note 12.	Filed with Post-Effective Amendment No. 7 to this Form N-4 Registration Statement (File No. 33-56908) on April 29, 1997.
Note 13.	Filed with Post-Effective Amendment No. 8 to this Form N-4 Registration Statement (File No. 33-56908) on February 27, 1998.
Note 14.	Filed with Post-Effective Amendment No. 9 to this Form N-4 Registration Statement (File No. 33-56908) on April 29, 1998.
Note 15.	Filed with Post-Effective Amendment No. 10 to this Form N-4 Registration Statement (File No. 33-56908) on September 28, 1998.
Note 16.	Filed with Post-Effective Amendment No. 11 to this Form N-4 Registration Statement (File No. 33-56908) on April 29, 1999.
Note 17.	Filed with the Initial filing of Form N-4 Registration Statement for the Access Variable Annuity (File No. 333-94489) on January 12, 2000.
Note 18.	Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4 Registration Statement (File No, 333-07509) on December 6, 1996.
Note 19.	Incorporated by reference to Post-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 333-07509) on April 29, 1997.
Note 20.	Filed with Post-Effective Amendment No. 12 to this Form N-4 Registration Statement (File No. 33-56908) on April 27, 2000.
Note 21.	Incorporated by reference to Post-Effective Amendment No. 3 to this Form N-4 Registration Statement (333-26209) on April 28, 2000.
Note 22.	Filed with Post-Effective Amendment No. 13 to this Form N-4 Registration Statement (File No. 33-56908) on October 3, 2000.
Note 23.	Incorporated by reference to Post-Effective Amendment No. 3 to Form N-4 Registration Statement (File No. 333-26209) on April 28, 2000.
Note 24.	Filed with Post-Effective Amendment No. 14 to this Form N-4 Registration Statement (File No. 33-56908) on April 30, 2001.
Note 25.	Incorporated by reference to Pre-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 333-63086) on September 13, 2001.
Note 26.	Incorporated by reference to Post-Effective Amendment No. 26 to Form N-4 Registration Statement (File No. 33-33085) on October 2, 2001.
Note 27.	Incorporated herein by reference to Post-Effective Amendment No. 5 to Form N-4 Registration Statement (File No. 333-7509) on July 16, 1998.
Note 28.	Incorporated herein by reference to Post-Effective Amendment No. 2 to Form N-4 Registration Statement (File No. 333-7509) on December 23, 1997.
Note 29.	Incorporated herein by reference to Post-Effective Amendment No. 8 to Form N-4 Registration Statement (File No. 333-7509) on April 29, 1999.
Note 30.	Filed with Post-Effective Amendment No. 16 to this Form N-4 Registration Statement (File No. 33-56908) on April 30, 2002.
Note 31.	Incorporated herein by reference to Post-Effective Amendment No. 31 to Form N-4 Registration Statement (File No. 33-33085) on October 15, 2002.
Note 32.	Filed with Post-Effective Amendment No. 17 to this form N-4 Registration Statement (File No. 33-56908) on December 30, 2002.
Note 33.	Filed with Post-Effective No. 20 to Form N-4 Registration Statement (File No. 33-56908) on April 30, 2003.
Note 34.	Filed with Post-Effective No. 22 to Form N-4 Registration Statement (File No. 33-56908) on April 30, 2004.
Note 35.	Incorporated herein by reference to Initial Filing to N-4 Registration Statement (File No. 333-116562) on June 17, 2004.
Note 36.	Incorporated herein by reference to Post-Effective Amendment No. 2 to Form N-4 Registration Statement (File No. 333-109580) on January 7, 2005.
Note 37.	Filed with Post-Effective Amendment No. 23 to Form N-4 Registration Statement (File No. 33-56908) on April 28, 2005.
Note 38.	Incorporated herein by reference to Post-Effective Amendment No. 38 to Form N-4 Registration Statement (File No. 33-33085) on September 12, 2005.
Note 39.	Filed with Post-Effective Amendment No. 27 to this Form N-4 Registration Statement (File No. 33-56908) on April 26, 2006.
Note 40.	Incorporated herein by Reference to Post-Effective Amendment No. 39 to this Form N-4 Registration Statement (File No. 33-33085) on December 12, 2005.
Note 41.	Incorporated herein by Reference to Pre-Effective Amendment No. 1 to this Form N-4 Registration Statement (File No. 333-131987) on July 19, 2006.
Note 42.	Filed with Post-Effective Amendment No. 28 to this Form N-4 Registration Statement (File No. 33-56908) on April 27, 2007.
Note 43.	Incorporated herein by Reference to Post-Effective Amendment No. 2 to Form N-4 Registration Statement (File No. 333-131987) on September 21, 2007.
Note 44.	Incorporated herein by reference to Post-Effective Amendment No. 6 to Form N-4 Registration Statement (File No. 333-125817) filed on February 15, 2008.
Note 45.	Filed with Post-Effective Amendment No. 30 to this Form N-4 Registration Statement (File No. 33-56908) on April 30, 2008.
Note 46.	Incorporated herein by reference to Post-Effective Amendment No. 5 to Form N-4 Registration Statement (File No. 333-131987) filed on August 14, 2008.
Note 47.	Filed with Post-Effective Amendment No. 31 to this Form N-4 Registration Statement (File No. 33-56908) on November 6, 2008.
Note 48.	Incorporated herein by reference to Initial Filing to Form N-4 Registration Statement (File No. 333-156259) filed on December 18, 2008.
Note 49.	Filed with Post-Effective Amendment No. 32 to this Form N-4 Registration Statement (File No. 33-56908) filed on April 30, 2009.
Note 50.	Incorporated herein by reference to Post-Effective Amendment No. 9 to Form N-4 Registration Statement (File 333-142762) filed on August 31, 2009.
Note 51.	Filed with Post-Effective Amendment No. 34 to this Form N-4 Registration Statement (File No. 33-56908) filed on November 19, 2009.
Note 52.	Filed with Post-Effective Amendment No. 36 to this Form N-4 Registration Statement (File No. 33-56908) filed on April 27, 2010.
Note 53.	Filed with Post-Effective Amendment No. 37 to this Form N-4 Registration Statement (File No. 33-56908) filed on August 6, 2010.
Note 54.	Incorporated by reference to Initial Filing on Form N-4 Registration Statement (File No. 333-169445) filed on September 17, 2010.
Note 55.	Filed with Post-Effective Amendment No. 38 to this Form N-4 Registration Statement (File No. 33-56908) filed on February 15, 2011.
Note 56.	Filed herewith.

C-5

Item 25.     Directors and Officers of the Depositor

Name and Business Address	Principal Positions and Offices with Depositor
Craig D. Vermie   4333 Edgewood Road, N.E.   Cedar Rapids, IA 52499	Director, Senior Vice President, Secretary and General Counsel
Arthur C. Schneider   4333 Edgewood Road, N.E.   Cedar Rapids, IA 52499	Director, Chief Tax Officer, and Senior Vice President
Eric J. Martin   4333 Edgewood Road, N.E.   Cedar Rapids, IA 52499	Senior Vice President and Corporate Controller
Brenda K. Clancy   4333 Edgewood Road, N.E.   Cedar Rapids, IA 52499	Director, President and Chairman of the Board
Darryl Button   4333 Edgewood Road, N.E.   Cedar Rapids, IA 52499-0001	Director, Executive Vice President and Chief Financial Officer
Mark W. Mullin   4333 Edgewood Road, N.E.   Cedar Rapids, IA 52499	Director and Chief Executive Officer

C-6

Item 26. Persons Controlled by or under Common Control With the Depositor or Registrant.

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Academy Alliance Holdings Inc.	Canada	100% Creditor Resources, Inc.	Holding company
Academy Alliance Insurance Inc.	Canada	100% Creditor Resources, Inc.	Insurance
AEGON Alliances, Inc.	Virginia	100% Commonwealth General Corporation	Insurance company marketing support
AEGON Asset Management Services, Inc.	Delaware	100% AUSA Holding Co.	Registered investment advisor
AEGON Assignment Corporation	Illinois	100% AEGON Financial Services Group, Inc.	Administrator of structured settlements
AEGON Assignment Corporation of Kentucky	Kentucky	100% AEGON Financial Services Group, Inc.	Administrator of structured settlements
AEGON Canada ULC	Canada	AEGON Canada Holding B.V. owns 168,250,001 shares of Common Stock; 1,500 shares of Series III Preferred stock; 2 shares of Series II Preferred stock. TIHI Canada Holding, LLC owns 1,441,941.26 shares of Class B—Series I Preferred stock.	Holding company
AEGON Capital Management Inc.	Canada	100% AEGON Asset Management (Canada) B.V.	Portfolio management company/investment advisor
AEGON-CMF GP, LLC	Delaware	Transamerica Realty Services, Inc. is sole Member	Investment in commercial mortgage loans
AEGON Core Mortgage Fund, LP	Delaware	General Partner—AEGON-CMF GP, LLC	Investment in mortgages
AEGON Direct Marketing Services, Inc.	Maryland	Monumental Life Insurance Company owns 103,324 shares; Commonwealth General Corporation owns 37,161 shares	Marketing company
AEGON Direct Marketing Services Australia Pty Ltd.	Australia	100% Transamerica Direct Marketing Asia Pacific Pty Ltd.	Marketing/operations company
AEGON Direct Marketing Services e Corretora de Seguros Ltda.	Brazil	749,000 quota shares owned by AEGON DMS Holding B.V.; 1 quota share owned by AEGON International B.V.	Brokerage company
AEGON Direct Marketing Services Europe Ltd.	United Kingdom	100% Cornerstone International Holdings, Ltd.	Marketing
AEGON Direct Marketing Services Hong Kong Limited	China	100% AEGON DMS Holding B.V.	Provide consulting services ancillary to the marketing of insurance products overseas.
AEGON Direct Marketing Services Insurance Broker (HK) Limited	Hong Kong	100% AEGON Direct Marketing Services Hong Kong Limited	Brokerage company
AEGON Direct Marketing Services International, Inc.	Maryland	100% AUSA Holding Company	Marketing arm for sale of mass marketed insurance coverage
AEGON Direct Marketing Services Japan K.K.	Japan	100% AEGON DMS Holding B.V.	Marketing company
AEGON Direct Marketing Services Korea Co., Ltd.	Korea	100% AEGON DMS Holding B.V.	Provide consulting services ancillary to the marketing of insurance products overseas.
AEGON Direct Marketing Services Mexico, S.A. de C.V.	Mexico	100% AEGON DMS Holding B.V.	Provide management advisory and technical consultancy services.
AEGON Direct Marketing Services Mexico Servicios, S.A. de C.V.	Mexico	100% AEGON DMS Holding B.V.	Provide marketing, trading, telemarketing and advertising services in favor of any third party, particularly in favor of insurance and reinsurance companies.

As of 1/1/2011 Page 1

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AEGON Direct Marketing Services, Inc.	Taiwan	100% AEGON DMS Holding B.V.	Authorized business: Enterprise management consultancy, credit investigation services, to engage in business not prohibited or restricted under any law of R.O.C., except business requiring special permission of government
AEGON Direct Marketing Services (Thailand) Ltd.	Thailand	93% Transamerica International Direct Marketing Consultants, LLC; remaining 7% held by various AEGON employees	Marketing of insurance products in Thailand
AEGON Financial Services Group, Inc.	Minnesota	100% Transamerica Life Insurance Company	Marketing
AEGON Fund Management Inc.	Canada	100% AEGON Asset Management (Canada) B.V.	Mutual fund manager
AEGON Funding Company, LLC.	Delaware	100% AEGON USA, LLC	Issue debt securities-net proceeds used to make loans to affiliates
AEGON Institutional Markets, Inc.	Delaware	100% Commonwealth General Corporation	Provider of investment, marketing and administrative services to insurance companies
AEGON Life Insurance Agency Inc.	Taiwan	100% AEGON Direct Marketing Services, Inc. (Taiwan Domiciled)	Life insurance
AEGON Managed Enhanced Cash, LLC	Delaware	Members: Transamerica Life Insurance Company (90.2543%) ; Monumental Life Insurance Company (9.7457%)	Investment vehicle for securities lending cash collateral
AEGON Management Company	Indiana	100% AEGON U.S. Holding Corporation	Holding company
AEGON N.V.	Netherlands	22.446% of Vereniging AEGON Netherlands Membership Association	Holding company
AEGON Stable Value Solutions Inc.	Delaware	100% Commonwealth General Corporation	Principle Business: Provides management services to the stable value division of AEGON insurers who issue synthetic GIC contracts.
AEGON Structured Settlements, Inc.	Kentucky	100% Commonwealth General Corporation	Administers structured settlements of plaintiff’s physical injury claims against property and casualty insurance companies
AEGON U.S. Holding Corporation	Delaware	100% Transamerica Corporation	Holding company
AEGON USA Asset Management Holding, LLC	Iowa	100% AUSA Holding Company	Holding company
AEGON USA Investment Management, LLC	Iowa	100% AEGON USA Asset Management Holding, LLC	Investment advisor
AEGON USA Real Estate Services, Inc.	Delaware	100% AEGON USA Realty Advisors, Inc.	Real estate and mortgage holding company
AEGON USA Realty Advisors, LLC	Iowa	Sole Member—AEGON USA Asset Management Holding, LLC	Administrative and investment services
AEGON USA Realty Advisors of California, Inc.	Iowa	100% AEGON USA Realty Advisors, Inc.	Investments
AEGON USA Travel and Conference Services LLC	Iowa	100% Money Services, Inc.	Travel and conference services
AEGON USA, LLC	Iowa	100% AEGON U.S. Holding Corporation	Holding company
AFSG Securities Corporation	Pennsylvania	100% Commonwealth General Corporation	Inactive
ALH Properties Eight LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Eleven LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Four LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Nine LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Seven LLC	Delaware	100% FGH USA LLC	Real estate

As of 1/1/2011 Page 2

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
ALH Properties Seventeen LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Sixteen LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Ten LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Twelve LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Two LLC	Delaware	100% FGH USA LLC	Real estate
American Bond Services LLC	Iowa	100% Transamerica Life Insurance Company (sole member)	Limited liability company
ARC Reinsurance Corporation	Hawaii	100% Transamerica Corporation	Property & Casualty Insurance
ARV Pacific Villas, A California Limited Partnership	California	General Partners—Transamerica Affordable Housing, Inc. (0.5%); Non-Affiliate of AEGON, Jamboree Housing Corp. (0.5%). Limited Partner: Transamerica Life Insurance Company (99%)	Property
Asia Business Consulting Company	China	100% Asia Investments Holdings, Limited	Provide various services upon request from Beijing Dafu Insurance Agency.
Asia Investments Holdings, Limited	Hong Kong	99% Transamerica Life Insurance Company	Holding company
AUSA Holding Company	Maryland	100% AEGON USA, LLC	Holding company
AUSA Properties, Inc.	Iowa	100% AUSA Holding Company	Own, operate and manage real estate
AUSACAN LP	Canada	General Partner—AUSA Holding Co. (1%); Limited Partner—AEGON USA, LLC (99%)	Inter-company lending and general business
Bay Area Community Investments I, LLC	California	70%Transamerica Life Insurance Company; 30% Monumental Life Insurance Company	Investments in low income housing tax credit properties
Bay State Community Investments I, LLC	Delaware	100% Monumental Life Insurance Company	Investments in low income housing tax credit properties
Bay State Community Investments II, LLC	Delaware	100% Monumental Life Insurance Company	Investments in low income housing tax credit properties
Beijing Dafu Insurance Agency Co. Ltd.	Peoples Republic of China	10% owned by WFG China Holdings, Inc.; 90% owned by private individual (non-AEGON associated)	Insurance Agency
Canadian Premier Holdings Ltd.	Canada	100% AEGON DMS Holding B.V.	Holding company
Canadian Premier Life Insurance Company	Canada	100% Canadian Premier Holdings Ltd.	Insurance company
Capital General Development Corporation	Delaware	2.64 shares of common stock owned by AEGON USA, LLC 18.79 shares of common stock owned by Commonwealth General Corporation	Holding company
CBC Insurance Revenue Securitization, LLC	Delaware	100% Clark Consulting, LLC	Special purpose
CC Matteson, LLC	Illinois	Members: Monumental Life Insurance Company (83.03%); Pan-American Life Insurance Company, a non-affiliate of AEGON (9.75%); Nationwide Life Insurance Company, a non-affiliate of AEGON (7.22%)	Ownership of commercial real estate acquired via remedies enforcement.
Chicago Community Housing Fund I, LLC	Delaware	100% Transamerica Life Insurance Company	Investments
Clark/Bardes (Bermuda) Ltd.	Bermuda	100% Clark, LLC	Insurance agency
Clark, LLC	Delaware	Sole Member—Diverisified Investment Advisors, Inc.	Holding company
Clark Consulting, LLC	Delaware	100% Clark, LLC	Financial consulting firm
Clark Investment Strategies, inc.	Delaware	100% Clark Consulting, LLC	Registered investment advisor
Clark Securities, Inc.	California	100% Clark Consulting, LLC	Broker-Dealer
Commonwealth General Corporation	Delaware	100% AEGON U.S. Holding Corporation	Holding company
Consumer Membership Services Canada Inc.	Canada	100% Canadian Premier Holdings Ltd.	Marketing of credit card protection membership services in Canada

As of 1/1/2011 Page 3

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Cornerstone International Holdings Ltd.	UK	100% AEGON DMS Holding B.V.	Holding company
CRG Insurance Agency, Inc.	California	100% Clark Consulting, Inc.	Insurance agency
Creditor Resources, Inc.	Michigan	100% AUSA Holding Co.	Credit insurance
CRI Canada Inc.	Canada	100% Creditor Resources, Inc.	Holding company
CRI Credit Group Services Inc.	Canada	100% Creditor Resources, Inc.	Holding company
CRI Solutions Inc.	Maryland	100% Creditor Resources, Inc.	Sales of reinsurance and credit insurance
Cupples State LIHTC Investors, LLC	Delaware	100% Garnet LIHTC Fund VIII, LLC	Investments
Diversified Actuarial Services, Inc.	Massachusetts	100% Diversified Investment Advisors, Inc.	Employee benefit and actuarial consulting
Diversified Investment Advisors, Inc.	Delaware	100% AUSA Holding Company	Registered investment advisor
Diversified Investors Securities Corp.	Delaware	100% Diversified Investment Advisors, Inc.	Broker-Dealer
Erfahrungsschatz GmbH	Germany	100% Cornerstone International Holdings, Ltd.	Marketing/membership
FD TLIC, LIMITED LIABILITY COMPANY	New York	100% Transamerica Life Insurance Company	Broadway production
FD TLIC Ltd.	United Kingdom	100% FD TLIC, LLC	Theatre production
FGH Realty Credit LLC	Delaware	100% FGH USA, LLC	Real estate
FGH USA LLC	Delaware	100% RCC North America LLC	Real estate
FGP 90 West Street LLC	Delaware	100% FGH USA LLC	Real estate
FGP West Mezzanine LLC	Delaware	100% FGH USA LLC	Real estate
FGP West Street LLC	Delaware	100% FGP West Mezzanine LLC	Real estate
FGP West Street Two LLC	Delaware	100% FGH USA LLC	Real estate
Fifth FGP LLC	Delaware	100% FGH USA LLC	Real estate
Financial Planning Services, Inc.	District of Columbia	100% Commonwealth General Corporation	Special-purpose subsidiary
First FGP LLC	Delaware	100% FGH USA LLC	Real estate
Fourth & Market Funding, LLC	Delaware	Commonwealth General Corporation owns 0% participating percentage, but is Managing Member. Ownership: 99% Monumental Life Insurance Company and 1% Garnet Assurance Corporation II	Inactive
Fourth FGP LLC	Delaware	100% FGH USA LLC	Real estate
Garnet Assurance Corporation	Kentucky	100%Transamerica Life Insurance Company	Investments
Garnet Assurance Corporation II	Iowa	100% Commonwealth General Corporation	Business investments
Garnet Assurance Corporation III	Iowa	100% Transamerica Life Insurance Company	Business investments
Garnet Community Investments, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments II, LLC	Delaware	100% Monumental Life Insurance Company	Securities
Garnet Community Investments III, LLC	Delaware	100%Transamerica Life Insurance Company	Business investments
Garnet Community Investments IV, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments V, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments VI, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments VII, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments VIII, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments IX, LLC	Delaware	100% Monumental Life Insurance Company	Investments

As of 1/1/2011 Page 4

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet Community Investments X, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments XI, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments XII, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments XVIII, LLC	Delaware	100% Transamerica Life Insurance Company	Investments
Garnet Community Investments XX, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments
Garnet Community Investments XXIV, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Real estate investments
Garnet Community Investments XXV, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments
Garnet Community Investment XXVI, LLC	Delaware	100% Transamerica Life Insurance Company	Investments
Garnet Community Investments XXVII, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments
Garnet Community Investment XXVIII, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments
Garnet Community Investments XXIX, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments
Garnet Community Investments XXX, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments
Garnet LIHTC Fund II, LLC	Delaware	Members: Garnet Community Investments II, LLC (0.01%); Metropolitan Life Insurance Company, a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund III, LLC	Delaware	Members: Garnet Community Investments III, LLC (0.01%); Jefferson-Pilot Life Insurance Company, a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund IV, LLC	Delaware	Members: Garnet Community Investments IV, LLC (0.01%); Goldenrod Asset Management, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund V, LLC	Delaware	Members: Garnet Community Investments V, LLC (0.01%); Lease Plan North America, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund VI, LLC	Delaware	Members: Garnet Community Investments VI, LLC (0.01%); Pydna Corporation, a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund VII, LLC	Delaware	Members: Garnet Community Investments VII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate(99.99%)	Investments
Garnet LIHTC Fund VIII, LLC	Delaware	Members: Garnet Community Investments VIII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate(99.99%)	Investments
Garnet LIHTC Fund IX, LLC	Delaware	Members: Garnet Community Investments IX, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments

As of 1/1/2011 Page 5

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund X, LLC	Delaware	Members: Garnet Community Investments X, LLC (0.01%); Goldenrod Asset Management, a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XI, LLC	Delaware	Members: Garnet Community Investments XI, LLC (0.01%); NorLease, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XII, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); and the following non-AEGON affiliates: Bank of America, N.A.( 73.39%); J.P. Morgan Chase Bank, N.A. (13.30%); NorLease, Inc. (13.30%)	Investments
Garnet LIHTC Fund XII-A, LLC	Delaware	Garnet Community Investments XII, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XII-B, LLC	Delaware	Garnet Community Investments XII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XII-C, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); NorLease, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIII, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); and the following non-AEGON affiliates: Bank of America, N.A.( 73.39%); J.P. Morgan Chase Bank, N.A. (13.30%); NorLease, Inc. (13.30%)	Investments
Garnet LIHTC Fund XIII-A, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIII-B, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); Norlease, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIV, LLC	Delaware	0.01% Garnet Community Investments, LLC; 49.995% Wells Fargo Bank, N.A.; and 49.995% Goldenrod Asset Management, Inc.	Investments
Garnet LIHTC Fund XV, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XVI, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); FNBC Leasing Corporation, a non-AEGON entity (99.99%)	Investments
Garnet LIHTC Fund XVII, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); ING USA Annuity and Life Insurance company, a non-affiliate of AEGON (12.999%), and ReliaStar Life Insurance Company, a non-affiliate of AEGON (86.991%).	Investments

As of 1/1/2011 Page 6

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund XVIII, LLC	Delaware	Members: Garnet Community Investments XVIII, LLC (0.01%); Verizon Capital Corp., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIX, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XX, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments
Garnet LIHTC Fund XXI, LLC	Delaware	100% Garnet Community Investments, LLC	Investments
Garnet LIHTC Fund XXII, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Norlease, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XXIII, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Idacorp Financial Services, Inc. (99.99%)	Investments
Garnet LIHTC Fund XXIV, LLC	Delaware	100% Garnet Community Investments, LLC	Investments
Garnet LIHTC Fund XXV, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments
Garnet LIHTC Fund XXVI, LLC	Delaware	Members: Garnet Community Investments XXVI, LLC (0.01%); American Income Life Insurance Company, a non-affiliate of AEGON (99.99%)	Investments
Garnet LIHTC Fund XXVII, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments
Garnet LIHTC Fund XXVIII, LLC	Delaware	Sole Member—Garnet Community Investments XXVIII, LLC	Real estate investments
Garnet LIHTC Fund XXIX, LLC	Delaware	Managing Member—Garnet Community Investments XXIX, LLC	Investments
Garnet LIHTC Fund XXX, LLC	Delaware	Managing Member—Garnet Community Investments XXX, LLC	Investments
Global Preferred Re Limited	Bermuda	100% AEGON USA, LLC	Reinsurance
Horizons Acquisition 5, LLC	Florida	Sole Member—PSL Acquisitions Operating, LLC	Development company
Horizons St. Lucie Development, LLC	Florida	Sole Member—PSL Acquisitions Operating, LLC	Development company
Innergy Lending, LLC	Delaware	50% World Financial Group, Inc.; 50% ComUnity Lending, Inc.(non-AEGON entity)	In the process of being dissolved
Intersecurities Insurance Agency, Inc.	California	100% Western Reserve Life Assurance Co. of Ohio	Insurance agency
Investment Advisors International, Inc.	Delaware	100% AUSA Holding Company	Investments
Investors Warranty of America, Inc.	Iowa	100% AUSA Holding Co.	Leases business equipment
Legacy General Insurance Company	Canada	100% Canadian Premier Holdings Ltd.	Insurance company
Life Investors Alliance, LLC	Delaware	100% Transamerica Life Insurance Company	Purchase, own, and hold the equity interest of other entities
Life Investors Financial Group, Inc.	Iowa	100% AUSA Holding Company	Special-purpose subsidiary
LIICA Holdings, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	To form and capitalize LIICA Re I, Inc.
LIICA Re I, Inc.	Vermont	100% LIICA Holdings, LLC	Captive insurance company
LIICA Re II, Inc.	Vermont	100%Transamerica Life Insurance Company	Captive insurance company
Massachusetts Fidelity Trust Company	Iowa	100% AUSA Holding Co.	Trust company
MLIC Re I, Inc.	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company

As of 1/1/2011 Page 7

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Money Services, Inc.	Delaware	100% AUSA Holding Co.	Provides financial counseling for employees and agents of affiliated companies
Monumental General Administrators, Inc.	Maryland	100% AUSA Holding Company	Provides management services to unaffiliated third party administrator
Monumental Life Insurance Company	Iowa	99.72% Capital General Development Corporation; .28% Commonwealth General Corporation	Insurance Company
nVISION Financial, Inc.	Iowa	100% AUSA Holding Company	Special-purpose subsidiary
National Association Management and Consultant Services, Inc.	Maryland	100% Monumental General Administrators, Inc.	Provides actuarial consulting services
NEF Investment Company	California	100% Transamerica Life Insurance Company	Real estate development
New Markets Community Investment Fund, LLC	Iowa	50% AEGON Institutional Markets, Inc.; 50% AEGON USA Realty Advisors, Inc.	Community development entity
Oncor Insurance Services, LLC	Iowa	Sole Member—Life Investors Financial Group, Inc.	Direct sales of term life insurance
Peoples Benefit Services, Inc.	Pennsylvania	100% Stonebridge Life Insurance Company	Special-purpose subsidiary
Pine Falls Re, Inc.	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company
Primus Guaranty, Ltd.	Bermuda	Partners are: Transamerica Life Insurance Company (13.1%) and non-affiliates of AEGON: XL Capital, Ltd. (34.7%); CalPERS/PCO Corporate Partners Fund, LLC (13.0%); Radian Group (11.1%). The remaining 28.1% of stock is publicly owned.	Provides protection from default risk of investment grade corporate and sovereign issues of financial obligations.
Prisma Holdings, Inc. I	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
Prisma Holdings, Inc. II	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
PSL Acquisitions, LLC	Iowa	Sole Member: Investors Warranty of America, Inc.	Aquirer of Core Florida mortgage loans from Investors Warranty and holder of foreclosed read estate.
PSL Acquisitions Operating, LLC	Iowa	Sole Member: Investors Warranty of America, Inc.	Owner of Core subsidiary entities
Pyramid Insurance Company, Ltd.	Hawaii	100% Transamerica Corporation	Property & Casualty Insurance
Quantitative Data Solutions, LLC	Delaware	100% Transamerica Life Insurance Company	Special purpose corporation
RCC North America LLC	Delaware	100% AEGON USA, LLC	Real estate
Real Estate Alternatives Portfolio 1 LLC	Delaware	Members: Transamerica Life Insurance Company (90.959%); Monumental Life Insurance Company (6.301%); Transamerica Financial Life Insurance Company (2.74%). Manager: AEGON USA Realty Advisors, Inc.	Real estate alternatives investment
Real Estate Alternatives Portfolio 2 LLC	Delaware	Members are: Transamerica Life Insurance Company (90.25%); Transamerica Financial Life Insurance Company (7.5%); Stonebridge Life Insurance Company (2.25%). Manager: AEGON USA Realty Advisors, Inc.	Real estate alternatives investment
Real Estate Alternatives Portfolio 3 LLC	Delaware	Members are: Transamerica Life Insurance Company (73.4%); Monumental Life Insurance Company (25.6%); Stonebridge Life Insurance Company (1%). Manager: AEGON USA Realty Advisors, Inc.	Real estate alternatives investment

As of 1/1/2011 Page 8

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Real Estate Alternatives Portfolio 3A, Inc.	Delaware	Members: Monumental Life Insurance Company (37%); Transamerica Financial Life Insurance Company (9.4%); Transamerica Life Insurance Company (52.6%); Stonebridge Life Insurance Company (1%)	Real estate alternatives investment
Real Estate Alternatives Portfolio 4 HR, LLC	Delaware	Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty Advisors, Inc.	Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common investment
Real Estate Alternatives Portfolio 4 MR, LLC	Delaware	Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty Advisors, Inc.	Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common investment
Real Estate Alternatives Portfolio 5 RE, LLC	Delaware	AEGON USA Realty Advisors, LLC is non-owner Manager; no ownership interests at this time.	Real estate investments
Realty Information Systems, Inc.	Iowa	100% Transamerica Realty Services, LLC	Information Systems for real estate investment management
Retirement Project Oakmont	California	General Partner: Transamerica Oakmont Retirement Associates, a CA limited partnership; Transamerica Life Insurance Company (limited partner); and Oakmont Gardens, a CA limited partnership (non-AEGON entity limited partner). General Partner of Transamerica Oakmont Retirement Associates is Transamerica Oakmont Corporation. 100 units of limited partnership interests widely held by individual investors.	Senior living apartment complex
River Ridge Insurance Company	Vermont	100% AEGON Management Company	Captive insurance company
Second FGP LLC	Delaware	100% FGH USA LLC	Real estate
Selient Inc.	Canada	100% Canadian Premier Holdings Ltd.	Application service provider providing loan origination platforms to Canadian credit unions.
Seventh FGP LLC	Delaware	100% FGH USA LLC	Real estate
Short Hills Management Company	New Jersey	100% AEGON U.S. Holding Corporation	Holding company
Southwest Equity Life Insurance Company	Arizona	Voting common stock is allocated 75% of total cumulative vote—AEGON USA, LLC. Participating Common stock (100% owned by non-AEGON shareholders) is allocated 25% of total cumulative vote.	Insurance
St. Lucie West Development Company, LLC	Florida	Sole Member—PSL Acquisitions Operating, LLC	Development company

As of 1/1/2011 Page 9

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Stonebridge Benefit Services, Inc.	Delaware	100% Commonwealth General Corporation	Health discount plan
Stonebridge Casualty Insurance Company	Ohio	100% AEGON USA, LLC	Insurance company
Stonebridge Group, Inc.	Delaware	100% Commonwealth General Corporation	General purpose corporation
Stonebridge International Insurance Ltd.	UK	100% Cornerstone International Holdings Ltd.	General insurance company
Stonebridge Life Insurance Company	Vermont	100% Commonwealth General Corporation	Insurance company
Stonebridge Reinsurance Company	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company
TAH-MCD IV, LLC	Iowa	Sole Member—Transamerica Affordable Housing, Inc.	Serve as the general partner for McDonald Corporate Tax Credit Fund IV Limited Partnership
TAH Pentagon Funds, LLC	Iowa	Sole Member—Transamerica Affordable Housing, Inc.	Serve as a general partner in a lower-tier tax credit entity
TAHP Fund 1, LLC	Delaware	Investor Member: Monumental Life Insurance Company	Real estate investments
TAHP Fund 2, LLC	Delaware	Sole Member—Garnet LIHTC Fund VIII, LLC	Low incoming housing tax credit
TAHP Fund VII, LLC	Delaware	Investor Member: Garnet LIHTC Fund XIX, LLC	Real estatement investments
TCF Asset Management Corporation	Colorado	100% TCFC Asset Holdings, Inc.	A depository for foreclosed real and personal property
TCFC Air Holdings, Inc.	Delaware	100% Transamerica Commercial Finance Corporation, I	Holding company
TCFC Asset Holdings, Inc.	Delaware	100% Transamerica Commercial Finance Corporation, I	Holding company
TCFC Employment, Inc.	Delaware	100% Transamerica Commercial Finance Corporation, I	Used for payroll for employees at Transamerica Finance Corporation
The AEGON Trust Advisory Board: Mark W. Mullin, Alexander R. Wynaendts, and Craig D. Vermie	Delaware	AEGON International B.V.	Voting Trust
The RCC Group, Inc.	Delaware	100% FGH USA LLC	Real estate
THH Acquisitions, LLC	Iowa	Sole Member—Investors Waranty of America, Inc.	Acquirer of Core South Carolina mortgage loans from Investors Warranty of America, Inc. and holder of foreclosed real estate.
TIHI Canada Holding, LLC	Iowa	Sole Member—Transamerica International Holdings, Inc.	Holding company
TIHI Mexico, S. de R.L. de C.V.	Mexico	95% Transamerica International Holdings, Inc.; 5% Transamerica Life Insurance Company	To render and receive all kind of administrative, accountant, mercantile and financial counsel and assistance to and from any other Mexican or foreign corporation, whether or not this company is a shareholder of them
Tradition Development Company, LLC	Florida	Sole Member—PSL Acquisitions Operating, LLC	Development company
Tradition Irrigation Company, LLC	Florida	Sole Member—PSL Acquisitions Operating, LLC	Irrigation company
Transamerica Accounts Holding Corporation	Delaware	100% TCFC Asset Holdings, Inc.	Holding company
Transamerica Advisors Life Insurance Company	Arkansas	100% AEGON USA, LLC	Insurance company
Transamerica Advisors Life Insurance Company of New York	New York	100% AEGON USA, LLC	Insurance company
Transamerica Affinity Services, Inc.	Maryland	100% AEGON Direct Marketing Services, Inc.	Marketing company
Transamerica Affordable Housing, Inc.	California	100% Transamerica Realty Services, LLC	General partner LHTC Partnership

As of 1/1/2011 Page 10

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Annuity Service Corporation	New Mexico	100% Transamerica International Holdings, Inc.	Performs services required for structured settlements
Transamerica Asset Management, Inc.	Florida	Western Reserve Life Assurance Co. of Ohio owns 77%; AUSA Holding Co. owns 23%.	Fund advisor
Transamerica Aviation LLC	Delaware	100% TCFC Air Holdings, Inc.	Special purpose corporation
Transamerica Capital, Inc.	California	100% AUSA Holding Co.	Broker/Dealer
Transamerica Commercial Finance Corporation, I	Delaware	100% Transamerica Finance Corporation	Holding company
Transamerica Consultora Y Servicios Limitada	Chile	95% Transamerica Life Insurance Company; 5% Transamerica International Holdings, Inc.	Special purpose limited liability corporation
Transamerica Consumer Finance Holding Company	Delaware	100% TCFC Asset Holdings, Inc.	Consumer finance holding company
Transamerica Corporation	Delaware	100% The AEGON Trust	Major interest in insurance and finance
Transamerica Corporation	Oregon	100% Transamerica Corporation	Holding company
Transamerica Direct Marketing Asia Pacific Pty Ltd.	Australia	100% AEGON DMS Holding B.V.	Holding company
Transamerica Direct Marketing Consultants, LLC	Maryland	51% Hugh J. McAdorey; 49% AEGON Direct Marketing Services, Inc.	Provide consulting services ancillary to the marketing of insurance products overseas.
Transamerica Direct Marketing Consultants Private Limited	India	100% AEGON DMS Holding B.V.	Marketing consultant
Transamerica Distribution Finance—Overseas, Inc.	Delaware	100% TCFC Asset Holdings, Inc.	Commercial Finance
Transamerica Finance Corporation	Delaware	100% Transamerica Corporation	Commercial & Consumer Lending & equipment leasing
Transamerica Financial Advisors, Inc. (f/k/a InterSecurities, Inc.)	Delaware	1,00 shares owned by AUSA Holding Company; 209 shares owned by Transamerica International Holdings, Inc.	Broker/Dealer
Transamerica Financial Life Insurance Company	New York	87.40% AEGON USA, LLC; 12.60% Transamerica Life Insurance Company	Insurance
Transamerica Fund Services, Inc.	Florida	Western Reserve Life Assurance Co. of Ohio owns 44%; AUSA Holding Company owns 56%	Mutual fund
Transamerica Funding LP	U.K.	99% Transamerica Leasing Holdings, Inc.; 1% Transamerica Commercial Finance Corporation, I	Intermodal leasing
Transamerica Home Loan	California	100% Transamerica Consumer Finance Holding Company	Consumer mortgages
Transamerica Insurance Marketing Asia Pacific Pty Ltd.	Australia	100% Transamerica Direct Marketing Asia Pacific Pty Ltd.	Insurance intermediary
Transamerica International Direct Marketing Consultants, LLC	Maryland	51% Hugh J. McAdorey; 49% AEGON Direct Marketing Services, Inc.	Provide consulting services ancillary to the marketing of insurance products overseas.
Transamerica International Holdings, Inc.	Delaware	100% AEGON USA, LLC	Holding company
Transamerica International RE (Bermuda) Ltd.	Bermuda	100% AEGON USA, LLC	Reinsurance
Transamerica International Re Escritório de Representação no Brasil Ltd	Brazil	95% Transamerica International Re(Bermuda) Ltd.; 5% Transamerica International Holdings, Inc.	Insurance and reinsurance consulting
Transamerica Investment Holdings, LLC	Delaware	100 shares of Class A stock owned by Transamerica Investment Services, Inc.; 1,902.82 shares of Class B stock owned by Professional Members (employees of Transamerica Investment Services, Inc.)	Holding company

As of 1/1/2011 Page 11

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Investment Management, LLC	Delaware	81.75% Transamerica Investment Services, Inc. as Original Member; 18.25% owned by Professional Members (employees of Transamerica Investment Services, Inc.)	Investment advisor
Transamerica Investment Services, LLC	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
Transamerica Investors, Inc.	Maryland	100% Transamerica Asset Management, Inc.	Open-end mutual fund
Transamerica Leasing Holdings, Inc.	Delaware	100% Transamerica Finance Corporation	Holding company
Transamerica Life (Bermuda) Ltd.	Bermuda	100% Transamerica Life Insurance Company	Long-term life insurer in Bermuda——  will primarily write fixed universal life and term insurance
Transamerica Life Canada	Canada	100% AEGON Canada ULC	Life insurance company
Transamerica Life Insurance Company	Iowa	676,190 shares Common Stock owned by Transamerica International Holdings, Inc.; 86,590 shares of Preferred Stock owned by Transamerica Corporation; 30,564 shares of Preferred Stock owned by AEGON USA, LLC	Insurance
Transamerica Life Solutions, LLC	Delaware	Investors Warranty of America, Inc.—sole member	Provision of marketing, training, educational, and support services to life insurance professionals relating to the secondary market for life insurance, primarily through its affiliation with LexNet, LP, a life settlements marketplace.
Transamerica Minerals Company	California	100% Transamerica Realty Services, LLC	Owner and lessor of oil and gas properties
Transamerica Oakmont Corporation	California	100% Transamerica International Holdings, Inc.	General partner retirement properties
Transamerica Oakmont Retirement Associates	California	General Partner is Transamerica Oakmont Corporation. 100 units of limited partnership interests widely held by individual investors.	Senior living apartments
Transamerica Pacific Insurance Company, Ltd.	Hawaii	26,000 shares common stock owned by Commonwealth General Corporation; 1,000 shares of common stock owned by Transamerica International Holdings, Inc.	Life insurance
Transamerica Pyramid Properties LLC	Iowa	100% Transamerica Life Insurance Company	Realty limited liability company
Transamerica Realty Investment Properties LLC	Delaware	100% Transamerica Life Insurance Company	Realty limited liability company
Transamerica Realty Services, LLC	Delaware	AUSA Holding Company—sole Member	Real estate investments
Transamerica Retirement Management, Inc.	Minnesota	100% AEGON Financial Services Group, Inc.	Life Insurance and underwriting services
Transamerica Retirement Services Corp.	Ohio	100% AUSA Holding Company	Record keeping
Transamerica Small Business Capital, Inc.	Delaware	100% TCFC Asset Holdings, Inc.	Holding company
Transamerica Trailer Leasing Sp. Z.O.O.	Poland	100% Transamerica Leasing Holdings, Inc.	Leasing
Transamerica Vendor Financial Services Corporation	Delaware	100% TCFC Asset Holdings, Inc.	Provides commercial leasing
United Financial Services, Inc.	Maryland	100% AEGON USA, LLC	General agency
Universal Benefits, LLC	Iowa	100% AUSA Holding Co.	Third party administrator

As of 1/1/2011 Page 12

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Western Reserve Life Assurance Co. of Ohio	Ohio	100% AEGON USA, LLC	Insurance
WFG China Holdings, Inc.	Delaware	100% World Financial Group, Inc.	Hold interest in Insurance Agency located in Peoples Republic of China
WFG Insurance Agency of Puerto Rico, Inc.	Puerto Rico	100% World Financial Group Insurance Agency, Inc.	Insurance agency
WFG Properties Holdings, LLC	Georgia	100% World Financial Group, Inc.	Marketing
WFG Property & Casualty Insurance Agency of California, Inc.	California	100% WFG Property & Casualty Insurance Agency, Inc.	Insurance agency
WFG Property & Casualty Insurance Agency of Nevada, Inc.	Nevada	100% WFG Property & Casualty Insurance Agency, Inc.	Insurance agency
WFG Property & Casualty Insurance Agency, Inc.	Georgia	100% World Financial Group Insurance Agency, Inc.	Insurance agency
WFG Reinsurance Limited	Bermuda	51% owned by World Financial Group, Inc; remaining 49% is annually offered to independent contractors associated with WFG Reinsurance Ltd.	Reinsurance
WFG Securities of Canada, Inc.	Canada	100% World Financial Group Holding Company of Canada, Inc.	Mutual fund dealer
World Financial Group Holding Company of Canada Inc.	Canada	100% Transamerica International Holdings, Inc.	Holding company
World Financial Group, Inc.	Delaware	100% AEGON Asset Management Services, Inc.	Marketing
World Financial Group Insurance Agency of Canada Inc.	Ontario	50% World Financial Group Holding Co. of Canada Inc.; 50% World Financial Group Subholding Co. of Canada Inc.	Insurance agency
World Financial Group Insurance Agency of Hawaii, Inc.	Hawaii	100% World Financial Group Insurance Agency, Inc.	Insurance agency
World Financial Group Insurance Agency of Massachusetts, Inc.	Massachusetts	100% World Financial Group Insurance Agency, Inc.	Insurance agency
World Financial Group Insurance Agency of Wyoming, Inc.	Wyoming	100% World Financial Group Insurance Agency, Inc.	Insurance agency
World Financial Group Insurance Agency, Inc.	California	100% Western Reserve Life Assurance Co. of Ohio	Insurance agency
World Financial Group Subholding Company of Canada Inc.	Canada	100% World Financial Group Holding Company of Canada, Inc.	Holding company
World Group Securities, Inc.	Delaware	100% AEGON Asset Management Services, Inc.	Broker-dealer
Zahorik Company, Inc.	California	100% AUSA Holding Co.	Inactive
Zero Beta Fund, LLC	Delaware	Members are: Transamerica Life Insurance Company (74.0181%); Monumental Life Insurance Company (23.6720%); Transamerica Financial Life Insurance Company (2.3097%). Manager: AEGON USA Investment Management LLC	Aggregating vehicle formed to hold various fund investments.

As of 1/1/2011 Page 13

Item 27.    Number of Policyowners

As of February 28, 2011, there were 9730 Owners of the Policies.

Item 28.    Indemnification

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

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

Item 29. Principal Underwriters

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

Transamerica Capital, Inc. serves as the principal underwriter for the Retirement Builder Variable Annuity Account, Separate Account VA A, Separate Account VA B, Separate Account VA C, Separate Account VA D, Separate Account VA E, Separate Account VA F, Separate Account VA I, Separate Account VA J, Separate Account VA K, Separate Account VA L, Separate Account VA P, Separate Account VA Q, Separate Account VA R, Separate Account VA S, Separate Account VA W, Separate Account VA X, Separate Account VA Y; Separate Account VA EE, Separate Account VA FF, Separate Account VA-1, Separate Account VA-2L, Separate Account VA-5, Separate Account VA-6, Separate Account VA-7, Separate Account VA-8, Separate Account Fund B, Separate Account Fund C, Transamerica Corporate Separate Account Sixteen, Transamerica Separate Account R3, Separate Account VL, Separate Account VUL-1; Separate Account VUL-2, Separate Account VUL-3, Separate Account VUL-4, Separate Account VUL-5, Separate Account VUL-6, Separate Account VUL A, and Variable Life Account A. These accounts are separate accounts of Transamerica Life Insurance Company.

Transamerica Capital, Inc. serves as principal underwriter for Separate Account VA BNY, Separate Account VA HNY, Separate Account VA QNY, Separate Account VA WNY, Separate Account VA YNY, TFLIC Separate Account VNY, Separate Account VA-2LNY, TFLIC Separate Account C, Separate Account VA-5NLNY, Separate Account VA-6NY, TFLIC Series Annuity Account and TFLIC Series Life Account. These accounts are separate accounts of Transamerica Financial Life Insurance Company.

Transamerica Capital, Inc. serves as principal underwriter for Separate Account VA U, Separate Account VA V, Separate Account VA AA, WRL Series Life Account, WRL Series Life Account G, WRL Series Life Corporate Account, WRL Series Annuity Account and WRL Series Annuity Account B. These accounts are separate accounts of Western Reserve Life Assurance Co. of Ohio.

Transamerica Capital, Inc. also serves as principal underwriter for Separate Account VA BB, Separate Account VA CC, and Separate Account VL E. This account is a separate account of Monumental Life Insurance Company.

Transamerica Capital, Inc. also serves as principal underwriter for Merrill Lynch Life Variable Annuity Separate Account, Merrill Lynch Life Variable Annuity Separate Account A, Merrill Lynch Life Variable Annuity Separate Account B, Merrill Lynch Life Variable Annuity Separate Account C, Merrill Lynch Life Variable Annuity Separate Account D, Merrill Lynch Variable Life Separate Account, and Merrill Lynch Life Variable Life Separate Account II. These accounts are separate accounts of Transamerica Advisors Life Insurance Company.

Transamerica Capital, Inc. also serves as principal underwriter for ML of New York Variable Annuity Separate Account, ML of New York Variable Annuity Separate Account A, ML of New York Variable Annuity Separate Account B, ML of New York Variable Annuity Separate Account C, ML of New York Variable Annuity Separate Account D, ML of New York Variable Life Separate Account, and ML of New York Variable Life Separate Account II. These accounts are separate accounts of Transamerica Advisors Life Insurance Company of New York.

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

(b) Directors and Officers of Transamerica Capital, Inc.:

Name	Principal Business Address	Position and Offices with Underwriter
Swank, Thomas A.	(1)	Director
Michael Brandsma	(2)	Director, President and Chief Financial Officer
Hopewell, David W.	(1)	Director
Barkdoll, Tamara D.	(2)	Assistant Secretary
Burke, Erin K.	(1)	Assistant Secretary
Angle, Amy	(3)	Assistant Vice President
Belanger, Elizabeth	(5)	Assistant Vice President
Cullem-Fiore, Margaret A.	(4)	Assistant Vice President
Fischer, John	(4)	Assistant Vice President
Gallagher, Dennis P	(4)	Assistant Vice President
Mossman, Shelley A.	(1)	Assistant Vice President
Post-Rissin, Christy	(4)	Assistant Vice President
Smith, Brenda L.	(4)	Assistant Vice President
Smith, Darin D.	(1)	Assistant Vice President
Wachendorf, Lisa	(1)	Assistant Vice President
Woods, Arthur D.	(4)	Assistant Vice President
John, Courtney	(2)	Chief Compliance Officer and Vice President
Bostwick, Blake S.	(2)	Chief Marketing Officer and Chief Operations Officer
Paulsen, David R.	(1)	Chief Sales Officer
Camp, Frank A.	(1)	Secretary
Wright, Karen R.	(3)	Treasurer
Heburn, Karen D.	(4)	Vice President
Hodgson, Wesley J.	(2)	Vice President

(1) 4333 Edgewood Road N.E., Cedar Rapids, IA 52499-0001

(2) 4600 S. Syracuse St., Suite 1100, Denver, CO 80237-2719

(3) 400 West Market Street, Louisville KY 40202

(4) 570 Carillon Parkway, St. Petersburg, FL 33716

(5) 440 Mammaroneck Avenue, Harrison, NY 10528

(c) Compensation to Principal Underwriter:

Name of Principal Underwriter	Net Underwriting Discounts and Commissions(1)		Compensation on Redemption	Brokerage Commissions	Compensation
Transamerica Capital, Inc.	$	9,529,339	0	0	0

⁽¹⁾ Fiscal Year 2010

Item 30.    Location of Accounts and Records

The records required to be maintained by Section 31(a) of the Investment Company Act of 1940 and Rules 31a-1 to 31a-3 promulgated thereunder, are maintained by Manager Regulatory Filing Unit Transamerica, at 4 Manhattanville Road, Purchase, New York 10577, or its Service Office, Financial Markets Group—Variable Annuity Dept., 4333 Edgewood Road N.E., Cedar Rapids, Iowa 52499.

Item 31.    Management Services.

All management Policies are discussed in Part A or Part B.

Item 32.    Undertakings

(a) Registrant undertakes that it will file a post-effective amendment to this registration statement as frequently as necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as Premiums under the Policy may be accepted.

(b) Registrant undertakes that it will include either (i) a postcard or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information or (ii) a space in the Policy application that an applicant can check to request a Statement of Additional Information.

(c) Registrant undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request to Transamerica at the address or phone number listed in the Prospectus.

(d) Transamerica hereby represents that the fees and charges deducted under the policies, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Transamerica.

Section 403(b) Representations

Transamerica represents that it is relying on a no-action letter dated November 28, 1988, to the American Council of Life Insurance (Ref. No. IP-6-88), regarding Sections 22(e), 27(c)(1), and 27(d) of the Investment Company Act of 1940, in connection with redeemability restrictions on Section 403(b) Policies, and that paragraphs numbered (1) through (4) of that letter will be complied with.

SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant hereby certifies that this Amendment to the Registration Statement meets the requirements for effectiveness pursuant to paragraph (b) of Securities Act Rule 485 and has caused this Registration Statement to be signed on its behalf, in the City of Cedar Rapids and State of Iowa, on this 26^th day of April, 2011.

SEPARATE ACCOUNT VA B

TRANSAMERICA LIFE INSURANCE COMPANY

Depositor

*

Brenda K. Clancy

President

As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

Signatures	Title	Date
* Mark W. Mullin	Director and Chief Executive Officer	, 2011
* Craig D. Vermie	Director, Senior Vice President, Secretary and General Counsel	, 2011
* Arthur C. Schneider	Director, Senior Vice President and Chief Tax Officer	, 2011
* Eric J. Martin	Senior Vice President and Corporate Controller	, 2011
* Brenda K. Clancy	Director, President and Chairman of the Board	, 2011
* Darryl Button	Director, Executive Vice President and Chief Financial Officer	, 2011
/s/ Shane E. Daly Shane E. Daly	Assistant Vice President and Assistant Secretary	April 26, 2011

*By: Shane E. Daly – Attorney-in-Fact pursuant to Powers of Attorney filed previously and herewith.

Registration No.

33-56908

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

EXHIBITS

TO

FORM N-4

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

FOR

SEPARATE ACCOUNT VA B

EXHIBIT INDEX

Exhibit No.	Description of Exhibit	Page No.*
(4)(z)	Form of Policy Rider (RIM)
(8)(b)(13)	Amendment No. 44 to Participation Agreement (TST)
(9)(a)	Opinion and Consent of Counsel
(9)(b)	Consent of Counsel
(10)(a)	Consent of Independent Registered Public Accounting Firm
(14)	Powers of Attorney

* Page numbers included only in manually executed original.