As filed with the Securities and Exchange Commission on April 15, 2013

Registration No. 333-            

811- 06032

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-4

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933	x
Pre-Effective Amendment No.	¨
Post-Effective Amendment No.	¨

and

REGISTRATION STATEMENT

UNDER

THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 116

SEPARATE ACCOUNT VA B

(Exact Name of Registrant)

TRANSAMERICA LIFE INSURANCE COMPANY

(Name of Depositor)

4333 Edgewood Road N.E.

Cedar Rapids, IA 52499-0001

(Address of Depositor’s Principal Executive Offices)

Depositor’s Telephone Number: (319) 355-8330

Darin D. Smith, Esq.

Transamerica Life Insurance Company

4333 Edgewood Road, N.E.

Cedar Rapids, IA 52499-4240

(Name and Address of Agent for Service)

Title of Securities Being Registered:         Flexible Premium Variable Annuity Policies

Approximate Date of Proposed Public Offering:

As soon as practicable after the effective date of the Registration statement.

Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

TRANSAMERICA PRINCIPIUM^SM II VARIABLE ANNUITY

Issued Through

SEPARATE ACCOUNT VA B*

By

TRANSAMERICA LIFE INSURANCE COMPANY

Prospectus

May 1, 2013

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 Principium^SM II Variable Annuity, you can obtain a free copy of the Statement of Additional Information (SAI) dated May 1, 2013. 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.

*Prior to May 1, 2013, the policies were issued through Separate Account VA EE. On April 30, 2013, Separate Account VA EE was consolidated with Separate Account VA B (see, “Separate Account Consolidation” for more information).

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.

The subaccounts available under this policy invest in underlying funds of the Portfolio companies listed below:

TRANSAMERICA SERIES TRUST

For a complete list of the available subaccounts, please refer to “Appendix - Portfolios Associated with the Subaccounts”. For more information on the underlying funds, please refer to the prospectus for the underlying fund.

2

TABLE OF CONTENTS

GLOSSARY OF TERMS	5
SUMMARY	7
ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES	13
THE ANNUITY POLICY	22
PURCHASE	22
Policy Issue Requirements	22
Premium Payments	23
Initial Premium Requirements	23
Additional Premium Payments	23
Maximum Total Premium Payments	23
Allocation of Premium Payments	24
Policy Value	24
INVESTMENT CHOICES	24
Selection of Underlying Portfolios	25
Addition, Deletion, or Substitution of Investments	25
The Fixed Account	27
Transfers	27
Market Timing and Disruptive Trading	28
EXPENSES	31
Surrender Charges	32
Excess Interest Adjustment	33
Mortality and Expense Risk Fees	33
Premium Taxes	33
Federal, State and Local Taxes	34
Special Service Fees	34
Transfer Fee	34
Service Charge	34
Administrative Charges	34
Initial Payment Guarantee	34
Access Rider	34
Additional Death Distribution	34
Additional Death Distribution+ Rider	34
Living Benefits Rider	34
Income LinkSM Rider Fee	35
Retirement Income MaxSM Rider Fees	35
Retirement Income ChoiceSM 1.6 Rider Fees	35
Portfolio Fees and Expenses	35
Reduced Fees and Charges	36

Revenue We Receive	36
ACCESS TO YOUR MONEY	38
Surrenders	38
Delay of Payment and Transfers	38
Excess Interest Adjustment	39
Signature Guarantee	40
ANNUITY PAYMENTS (THE INCOME PHASE)	41
Annuity Payment Options	41
DEATH BENEFIT	43
When We Pay A Death Benefit	44
When We Do Not Pay A Death Benefit	44
Deaths After the Annuity Commencement Date	45
Succession of Ownership	45
Amount of Death Benefit	45
Guaranteed Minimum Death Benefit	45
Adjusted Partial Surrender	47
TAX INFORMATION	47
ADDITIONAL FEATURES	58
Systematic Payout Option	58
Initial Payment Guarantee	58
Access Rider	59
Additional Death Distribution	60
Additional Death Distribution+ Rider	61
Nursing Care and Terminal Condition Withdrawal Option	62
Unemployment Waiver	62
Telephone Transactions	63
Dollar Cost Averaging Program	63
Asset Rebalancing	65
Guaranteed Lifetime Withdrawal Benefits	65
Living Benefits Rider	65
Income LinkSM Rider	73
Retirement Income MaxSM Rider	80
Retirement Income ChoiceSM 1.6 Rider	88
OTHER INFORMATION	98
Ownership	98
Beneficiary	98
Right to Cancel Period	98
Assignment	98

3

TABLE OF CONTENTS continued

Sending Forms and Transaction Requests in Good Order	98
Regulatory Modifications to Policy	99
Certain Offers	99
Mixed and Shared Funding	99
Exchanges and Reinstatements	99
Voting Rights	100
Abandoned or Unclaimed Property	100
Legal Proceedings	100
Transamerica Life Insurance Company	101
Financial Condition of the Company	101
The Separate Account	102
Separate Account Consolidation	102
The Funds	102
Distribution of the Policies	103
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION	105
APPENDIX
PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS	106
APPENDIX
DESIGNATED INVESTMENT OPTIONS	108
APPENDIX
CONDENSED FINANCIAL INFORMATION	109
APPENDIX
EXCESS INTEREST ADJUSTMENT EXAMPLES	112
APPENDIX
DEATH BENEFIT	116

APPENDIX
ADDITIONAL DEATH DISTRIBUTION RIDER	118
APPENDIX
ADDITIONAL DEATH DISTRIBUTION+ RIDER	119
APPENDIX
GUARANTEED LIFETIME WITHDRAWAL BENEFIT COMPARISON TABLE	120
APPENDIX
LIVING BENEFITS RIDER ADJUSTED PARTIAL WITHDRAWALS	125
APPENDIX
PAM METHOD TRANSFERS	132
APPENDIX
GUARANTEED LIFETIME WITHDRAWAL BENEFIT ADJUSTED PARTIAL SURRENDERS - INCOME LINKSM RIDER	136
APPENDIX
ADJUSTED PARTIAL SURRENDERS - GUARANTEED LIFETIME WITHDRAWAL BENEFIT RIDERS	138
APPENDIX
HYPOTHETICAL EXAMPLE OF THE WITHDRAWAL BASE CALCULATION - RETIREMENT INCOME MAXSM RIDER	143
APPENDIX
RIDER GRID VARIATIONS	145

4

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 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.

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 applicable surrender charge and 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 surrender charges or excess interest adjustments.

Guaranteed Lifetime Withdrawal Benefit — Any optional benefit under the policy that provides a guaranteed minimum withdrawal benefit, including the Living Benefits Rider, the Income Link^SM Rider, the Retirement Income Max^SM Rider or the Retirement Income Choice^SM 1.6 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 plus or minus excess interest adjustments plus the surrender charge on the portion of the requested partial surrender that is subject to the surrender charge); plus

• interest credited in the fixed account; plus

• accumulated gains in the separate account; minus

• accumulated losses in the separate account; minus

5

• 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.

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 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.

6

SUMMARY

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

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 in the “Appendix – Portfolios Associated with the Subaccounts” 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.

PURCHASE

The initial premium payment for nonqualified policies must be at least $5,000 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.

INVESTMENT CHOICES

You can allocate your premium payments to one of several underlying fund portfolios listed in the “Appendix – Portfolios Associated with the Subaccounts” 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.

EXPENSES

Note: The following section on expenses and the Annuity Policy Fee Table and expense examples only apply to policies issued on or after the date of this prospectus.

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.

7

We may deduct a surrender charge of up to 5% of premium payments surrendered within five years after the premium is paid. We will calculate surrender charges by taking the earnings, if any, out before premium payments. If you select the Life with Emergency Cash^SM annuity payment option, then you can surrender your policy after annuity payments have begun. A surrender charge of up to 4% of adjusted 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 depends on the death benefit option that you select, as follows:

• 0.85% if you do not choose an optional guaranteed minimum death benefit

• 1.00% if you choose the Return of Premium Death Benefit

• 1.20% 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.

If you elect the Access Rider, then there is a fee equal to an effective annual rate of 0.35% of the daily net asset value in the subaccounts.

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+ Rider (“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 Income Link^SM Rider, there is an annual rider fee of 0.90% of the withdrawal base which is charged quarterly during the accumulation phase.

If you elect the Retirement Income Max^SM Rider, there is an annual rider fee of 1.25% (1.00% for riders issued prior to December 12, 2011) on an annual basis of the withdrawal base which is charged quarterly during the accumulation phase.

8

If you elect the Retirement Income Choice^SM 1.6 Rider, there is a rider fee during the accumulation phase of 0.70% to 1.55% (on an annual basis) of the withdrawal base, which is charged quarterly, 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.

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

ACCESS TO YOUR MONEY

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

You may generally take out up to the free amount free of surrender charges. Amounts surrendered in excess of this free amount may be subject to surrender charges and/or excess interest adjustments. 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^SM 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

Policy. 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.

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.

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

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

• Return of Premium Death Benefit

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

9

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

The death benefit is paid first to a surviving owner, if any; it is paid only to the beneficiary if there is no surviving owner.

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.

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+ Rider” (“ADD+”). There is an extra charge for these riders.

• Under certain medically related circumstances, you may surrender all or a portion of the policy value without any surrender charge or 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 surrender charges or excess interest adjustments. 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 eliminates all surrender charges during the accumulation phase. You can only elect this rider

10

at the time you purchase your policy. This feature is called the “Access Rider”. There is an extra charge for this rider.

• 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 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^SM Rider.” If you elect the Income Link^SM Rider, you must allocate 100% of your policy value to one or more “designated investment option(s).” (See “Appendix - Designated Investment Options”.) You may lose the benefit of this rider if you take any withdrawal that is not an Income Link^SM rider systematic withdrawal. 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 “Appendix- 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.

• 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^SM 1.6 Rider.” If you elect the Retirement Income Choice^SM 1.6 Rider, you must allocate 100% of your policy value in certain designated investment choices. You may lose the benefit of this rider if you take “excess” withdrawals. There is an extra charge for this rider.

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.

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

11

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.

Financial Information. Prior to May 1, 2013, the policies were issued through Separate Account VA EE. On April 30, 2013, Separate Account VA EE was consolidated with Separate Account VA B (see,

“Separate Account Consolidation” for more information). Financial Statements for the Company, the Separate Account VA B, and Separate Account VA EE are in the SAI. Condensed financial information for the subaccounts (those in operation by year end December 31, 2012) are in “Appendix -Condensed Financial Information “ to this prospectus and the SAI.

INQUIRIES

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

Transamerica Life Insurance Company

Administrative 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. We cannot guarantee that you will be able to access this site.

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

12

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 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 EXPENSES.

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		5%
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	0.70%
Administrative Charge	0.15%
Total Base Separate Account Annual Expenses	0.85%
Optional Separate Account Expenses: (You may only elect one of the guaranteed minimum death benefits listed below)
Double Enhanced Death Benefit - No Longer Available	0.80%
Annual Step-Up Death Benefit	0.35%
Return of Premium Death Benefit	0.15%
Access Rider	0.35%
Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses	1.55%
Optional Rider Fees: (You may only elect one of the optional riders listed below)
Additional Death Distribution (annual charge based on policy value)	0.25%
Additional Death Distribution+ Rider (annual charge based on policy value)	0.55%

13

Optional Guaranteed Lifetime Withdrawal Benefit Rider Fees: (You may only elect one of the optional riders listed below)
Living Benefits Rider (annual charge - a % of Principal Back Total Withdrawal Base)	0.90%
Income LinkSM 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):
(for riders issued on or after December 12, 2011)
Base Benefit (Maximum)	2.00%
Base Benefit (Current)	1.25%
Retirement Income MaxSM Rider (annual charge - a % of withdrawal base):
(for riders issued before December 12, 2011)
Base Benefit (Maximum)	1.75%
Base Benefit (Current)	1.00%
Retirement Income ChoiceSM 1.6 Rider (annual charge - a % of withdrawal base):
Base Benefit Designated Allocation Group A (Maximum)	2.30%
Base Benefit Designated Allocation Group A (Current)	1.55%
Base Benefit Designated Allocation Group B (Maximum)	1.85%
Base Benefit Designated Allocation Group B (Current)	1.10%
Base Benefit Designated Allocation Group C (Maximum)	1.45%
Base Benefit Designated Allocation Group C (Current)	0.70%
Additional Benefits available with the Retirement Income ChoiceSM 1.6 Rider:
Death Benefit (Single Life Option)	0.40%
Death Benefit (Joint Life Option)	0.35%
Income EnhancementSM Benefit (Single Life Option)	0.30%
Income EnhancementSM Benefit (Joint Life Option)	0.50%
Maximum Total Retirement Income ChoiceSM 1.6 Rider Fees (Joint Life) with Highest Combination of Benefits and Allocation Options	3.15%
Current Total Retirement Income ChoiceSM 1.6 Rider Fees (Joint Life) with Highest Combination of Benefits and Allocation Options	2.40%
Optional Guaranteed Lifetime Withdrawal Benefit Rider Fees - No Longer Available
Retirement Income ChoiceSM Rider - Single Life Option (annual charge - a % of Withdrawal Base)
Base Benefit (Maximum)	1.35%
Base Benefit (Current)	0.60%

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Additional Benefits available with the Retirement Income ChoiceSM Rider:
Death Benefit	0.25%
Income EnhancementSM Benefit	0.15%
Maximum Total Retirement Income ChoiceSM Rider Fees (Single Life) with Highest Combination of Benefits	1.75%
Current Total Retirement Income ChoiceSM Rider Fees (Single Life) with Highest Combination of Benefits	1.00%
Retirement Income ChoiceSM Rider - Joint Life Option (annual charge - a % of Withdrawal Base):
Base Benefit (Maximum)	1.65%
Base Benefit (Current)	0.90%
Additional Benefits available with the Retirement Income ChoiceSM Rider:
Death Benefit	0.20%
Income EnhancementSM Benefit	0.30%
Maximum Total Retirement Income ChoiceSM Rider Fees (Joint Life) with Highest Combination of Benefits	2.15%
Current Total Retirement Income ChoiceSM Rider Fees (Joint Life) with Highest Combination of Benefits	1.40%
Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider - Single Life Option
(annual charge - a % of Withdrawal Base):
Base Benefit (Maximum)	1.65%
Base Benefit (Current)	0.90%
Additional Benefits available with the Retirement Income ChoiceSM with
Double Withdrawal Base Benefit Rider:
Death Benefit	0.25%
Income EnhancementSM Benefit	0.15%
Maximum Total Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider Fees (Single Life) with Highest Combination of Benefits	2.05%
Current Total Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider Fees (Single Life) with Highest Combination of Benefits	1.30%
Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider - Joint Life Option (annual charge - a % of Withdrawal Base):
Base Benefit (Maximum)	1.65%
Base Benefit (Current)	0.90%
Additional Benefits available with the Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider:
Death Benefit	0.20%
Income EnhancementSM Benefit	0.30%
Maximum Total Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider Fees (Joint Life) with Highest Combination of Benefits	2.15%

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Current Total Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider Fees (Joint Life) with Highest Combination of Benefits	1.40%
Retirement Income ChoiceSM 1.4 Rider (annual charge - a % of withdrawal base):
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 ChoiceSM 1.4 Rider:
Death Benefit (Single Life Option)	0.25%
Death Benefit (Joint Life Option)	0.20%
Income EnhancementSM Benefit (Single Life Option)	0.15%
Income EnhancementSM Benefit (Joint Life Option)	0.30%
Maximum Total Retirement Income ChoiceSM 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits	2.65%
Current Total Retirement Income ChoiceSM 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits	1.90%
Retirement Income ChoiceSM 1.2 Rider (annual charge - a % of withdrawal base):
(for riders issued on or after December 12, 2011)
Base Benefit Open Allocation Option (Maximum)	2.00%
Base Benefit Open Allocation Option (Current)	1.25%
Base Benefit Designated Allocation Group A (Maximum)	2.30%
Base Benefit Designated Allocation Group A (Current)	1.55%
Base Benefit Designated Allocation Group B (Maximum)	1.85%
Base Benefit Designated Allocation Group B (Current)	1.10%
Base Benefit Designated Allocation Group C (Maximum)	1.45%
Base Benefit Designated Allocation Group C (Current)	0.70%
Additional Benefits available with the Retirement Income ChoiceSM 1.2 Rider:
Death Benefit (Single Life Option)	0.25%
Death Benefit (Joint Life Option)	0.20%
Income EnhancementSM Benefit (Single Life Option)	0.30%
Income EnhancementSM Benefit (Joint Life Option)	0.50%
Maximum Total Retirement Income ChoiceSM 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits and Allocation Options	3.00%
Current Total Retirement Income ChoiceSM 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits and Allocation Options	2.25%
Retirement Income ChoiceSM 1.2 Rider (annual charge – a % of withdrawal base):
(for riders issued before December 12, 2011)
Base Benefit Open Allocation Option (Maximum)	1.95%
Base Benefit Open Allocation Option (Current)	1.20%

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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 ChoiceSM 1.2 Rider:
Death Benefit (Single Life Option)	0.25%
Death Benefit (Joint Life Option)	0.20%
Income EnhancementSM Benefit (Single Life Option)	0.15%
Income EnhancementSM Benefit (Joint Life Option)	0.30%
Maximum Total Retirement Income ChoiceSM 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits and Allocation Options	2.65%
Current Total Retirement Income ChoiceSM 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits and Allocation Options	1.90%

The next section shows the lowest and highest total operating expenses charged by the underlying fund portfolios for the year ended December 31, 2012 (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.

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	0.67	%
Highest Gross	1.44	%

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, 2012, and the base policy with the combination of available optional features or riders with the highest fees and expenses, including the Annual Step-Up Death Benefit, Additional Death Distribution+ Rider, and Retirement Income Choice^SM 1.6 Rider - Joint Life with additional Death Benefit and Income Enhancement^SM 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 (without Access Rider):

1 Year	$	1029
3 Years	$	2038
5 Years	$	3088
10 Years	$	6267

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If the policy is annuitized at the end of the applicable time period or if you do not surrender your policy (without Access Rider):

1 Year	$	579
3 Years	$	1768
5 Years	$	2998
10 Years	$	6267

If the policy is surrendered at the end of the applicable time period (with Access Rider):

1 Year	$	614
3 Years	$	1867
5 Years	$	3156
10 Years	$	6538

If the policy is annuitized at the end of the applicable time period or if you do not surrender your policy (with Access Rider):

1 Year	$	614
3 Years	$	1867
5 Years	$	3156
10 Years	$	6538

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 OTHER INFORMATION - Distributor of the Policies.

NOTES TO FEE TABLE AND EXPENSE EXAMPLES

Policy Owner Transaction Expenses:

Maximum Surrender Charge: The surrender charge, if any is imposed, applies to each premium, regardless of how policy value is allocated among the investment choices. The surrender charge decreases based on the number of years since the premium payment was made.

If you select the Life with Emergency Cash^SM annuity payment option, you will be subject to a surrender charge after the annuity commencement date. See EXPENSES.

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, including overnight delivery.

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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.

Access Rider: The fee is a percentage of the daily net asset value in the separate account.

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 Double Enhanced Death Benefit is not included in the Total since it is no longer available. 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.

Optional Guaranteed Lifetime Withdrawal Benefit Rider Fees:

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. 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.

Maximum Total Income Link^SM 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. The Withdrawal Base on the rider date is the policy value. This fee total reflects the maximum fee increase resulting from an automatic step-up of the Withdrawal Base while the rider is in effect.

Retirement Income Choice^SM 1.6 Rider - base benefit: The fee is a percentage of the Withdrawal Base. The Withdrawal Base on the rider date is the policy value. 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^SM 1.6 Rider - Additional Benefits (Single Life and Joint Life Options): You may elect the Retirement Income Choice^SM 1.6 Rider with one or more of the following options - Death Benefit or Income Enhancement^SM Benefit. The charge for each of these options is a percentage of the Withdrawal Base and is in addition to the base benefit fee.

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Maximum Total Retirement Income Choice^SM 1.6 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^SM 1.6 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^SM Benefit (Joint Life Option).

Current Total Retirement Income Choice^SM 1.6 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^SM Benefit (Joint Life Option).

Optional Guaranteed Lifetime Withdrawal Benefit Rider Fees - No Longer Available

Retirement Income Choice^SM Rider, Retirement Income Choice^SM with Double Withdrawal Base Benefit Rider, Retirement Income Choice^SM 1.4 Rider and Retirement Income Choice^SM 1.2 Rider - base benefit: The fee is a percentage of the Withdrawal Base. The Withdrawal Base on the rider date is the policy value. 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^SM Rider, Retirement Income Choice^SM with Double Withdrawal Benefit Rider, Retirement Income Choice^SM 1.4 Rider and Retirement Income Choice^SM 1.2 Rider - Additional Benefits (Single Life and Joint Life Options): If you elected the Retirement Income Choice^SM Rider, Retirement Income Choice^SM with Double Withdrawal Benefit Rider, Retirement Income Choice^SM 1.4 Rider or Retirement Income Choice^SM 1.2 Rider with one or more of the following options - Death Benefit or Income Enhancement^SM 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^SM 1.4 and Retirement Income Choice^SM 1.2 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^SM 1.4 and Retirement Income Choice^SM 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^SM Benefit (Joint Life Option).

Current Total Retirement Income Choice^SM 1.4 and Retirement Income Choice^SM 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^SM Benefit (Joint Life Option).

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 advisers or managers, and the

20

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.

21

THE ANNUITY POLICY

This prospectus describes the Transamerica Principium^SM II Variable Annuity policy offered by the Company.

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.

PURCHASE

Policy Issue Requirements

The Company will not issue a policy unless:

• the Company receives in good order (See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order) all information needed to issue the policy;

• the Company receives in good order (at our Administrative 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).

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

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Premium Payments

You should make checks for premium payments payable only to Transamerica Life Insurance Company and send them to the Administrative 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 $5,000, 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 in good order. 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 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

23

$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 Office, or by telephone, subject to the limitations described under ADDITIONAL FEATURES - 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.

INVESTMENT CHOICES

The Transamerica Principium^SM II Variable Annuity offers you a means of investing in various underlying fund portfolios offered by different investment companies (by investing in the corresponding subaccounts). The companies that provide investment advice and administrative services for the underlying fund portfolios offered through this Policy are listed in the “Appendix - Portfolios Associated with the Subaccounts”.

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.

Note: If you received a summary prospectus for any of the portfolios listed in “Appendix - Portfolios Associated with the Subaccounts”, please follow the instructions on the first page of the summary prospectus to obtain a copy of the full fund prospectus.

24

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 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.

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

25

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. Any subsequent premium payments, asset rebalance programs or dollar cost averaging transactions into a closed subaccount will be re-allocated to the remaining available investment choices according to the

investment allocation instructions you previously provided. Under asset rebalance programs the value remaining in the closed fund will be excluded from any future rebalancing. The value of the closed fund will continue to fluctuate due to portfolio performance, and may exceed the original rebalance percentages you requested. As you consider your overall investment strategy within your annuity, you should also consider whether or not to re-allocate the value remaining in the closed fund to another investment choice. If you decide to re-allocate the value of the closed fund, you will need to provide us with instructions to achieve your goal.

If you allocate premium to a subaccount that is closed to new investment, we will require new instructions. If we do not receive new instructions, the requested transaction will be canceled and the premium will be returned.

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 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.

26

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.

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). See ACCESS TO YOUR MONEY - Excess Interest Adjustment for more information about when an

excess interest adjustment applies. This adjustment will also be made to amounts that you apply to an annuity payment option. 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 non-forfeiture 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. The interest credited as well as principal invested in the fixed account is based on the claims-paying ability of Transamerica.

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

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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. (Note: This restriction may prolong the period of time it takes to transfer the full amount in the guaranteed period option of the fixed account. You should carefully consider whether investment in the fixed account meets your needs and investment criteria.)

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 while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order.

The number of transfers permitted may be limited and a $10 charge for each transfer in excess of 12 in any policy year may apply. 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 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

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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, 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 judgment 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.

In addition, transfers for multiple policies invested in the Transamerica Series Trust underlying fund portfolios which are submitted together may be disruptive at certain levels. At the present time, such aggregated transactions likely will not cause disruption if less than one million dollars total is being transferred with respect to any one underlying fund portfolio (a smaller amount may apply to smaller portfolios). Please note that transfers of less than one million dollars may be disruptive in some circumstances and this general amount may change quickly.

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For policies with Portfolio Allocation Method or Open Allocation Method, the effect of transfers pursuant thereto may be considered disruptive for certain underlying fund portfolios. As a result, policy owners using Portfolio Allocation Method or Open Allocation Method may have to change their selected underlying fund portfolios.

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 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 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

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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 underlying fund portfolios. In addition, if an underlying fund portfolio believes that an omnibus order we submit may reflect one or more transfer requests from owners engaged in market timing and disruptive trading, the underlying fund portfolio may reject the entire omnibus order and thereby delay or prevent us from implementing your request.

EXPENSES

Note: The following section on expenses and the ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES only apply to policies issued on or after the date of this prospectus.

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

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Surrender Charges

During the accumulation phase, you can surrender part or all of the cash value (restrictions may apply to qualified policies). We may apply a surrender charge to compensate us for expenses relating to sales, including commissions to registered representatives and other promotional expenses.

You can surrender up to the greater of (i) 10% of your premium payments or (ii) any gains in the policy each year free of surrender charges. This amount is referred to as the free amount and is determined at the time of surrender. (The free amount is not cumulative, so not surrendering anything in one year does not increase the surrender charge free amount in subsequent years.) If the surrender is in excess of this free amount, you might have to pay a surrender charge, which is a contingent deferred sales charge, on the excess amount.

The following schedule shows the surrender charges that apply during the five years following payment of each premium payment:

Number of Years Since Premium Payment Date	Surrender Charge (as a percentage of premium surrendered)
0 - 1		5%
1 - 2		4%
2 - 3		3%
3 - 4		2%
4 - 5		1%
more than 5		0%

For example, assume your premium is $100,000 and your policy value is $106,000 at the beginning of the second policy year and you surrender $30,000. Since that amount is more than your free amount ($10,000), you would pay a surrender charge of $800 on the remaining $20,000 [4% of ($30,000 - $10,000)].

Likewise, assume your policy value is $80,000 (premium payments $100,000) at the beginning of the second policy year and you surrender your policy. You would pay a surrender charge of $3,600 [4% of ($100,000 - ($100,000 x 10%))].

You can generally choose to receive the full amount of a requested partial surrender by directing us to deduct any applicable surrender charge (and any applicable excess interest adjustment) from your remaining policy value. You receive your cash value upon full surrender.

For surrender charge purposes, earnings are considered to be surrendered first, then the oldest premium is considered to be surrendered next.

Surrender charges are waived if you surrender money under the Nursing Care and Terminal Condition Withdrawal Option or the Unemployment Waiver.

Keep in mind that surrenders may be taxable and, if made before age 59 ¹/₂, may be subject to a 10% federal penalty tax. For tax purposes, surrenders from nonqualified policies are considered to come from taxable earnings first.

An optional rider is available which eliminates all surrender charges during the accumulation phase. You can only elect this rider at the time you purchase the policy. There is an extra charge for this rider. See “Access Rider”.

Life with Emergency Cash^SM Surrender Charge

If you select the Life with Emergency Cash^SM 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:

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Number of Years Since Annuity Commencement Date	Surrender Charge (as a % of adjusted policy value surrendered)
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^SM 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 surrendered and not a percentage of premium; and

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

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. The excess interest adjustment plays a role in calculating the total interest credited to the fixed account.

Mortality and Expense Risk Fees

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

During the accumulation phase:

• The mortality and expense risk fee is at an annual rate of 0.70% if no guaranteed minimum death benefit is elected.

• For the Return of Premium Death Benefit, the daily mortality and expense risk fee is at an annual rate of 0.85%.

• For the Annual Step-Up Death Benefit, the daily mortality and expense risk fee is at an annual rate of 1.05%.

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.

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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 policy 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.

Service Charge

During the accumulation phase, an annual service charge of $35 (but not more than 2% of the policy value) is charge 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.

Administrative Charges

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

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.

Access Rider

If you elect the Access Rider, there is a daily rider fee at an annual rate of 0.35% of the daily net asset value in the separate account.

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+ Rider

If you elect the Additional Death Distribution+ Rider, 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.

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.

Income Link^SM Rider Fee

If you elect the Income Link^SM rider, there is an annual rider fee which is currently 0.90% of the withdrawal base which is charged quarterly during the accumulation phase.

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, there is an annual rider fee which is currently 1.25% (1.00% for riders issued prior to December 12, 2011) on an annual basis of the withdrawal base which is charged quarterly during the accumulation phase. 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. The rider fee may increase due to an automatic step-up but will not exceed the maximum rider fee percentage in the fee table.

Retirement Income Choice^SM 1.6 Rider Fees

If you elect the Retirement Income Choice^SM 1.6 rider, then the rider fee, which is charged quarterly before annuitization, is 1.55%, 1.10% and 0.70% (on an annual basis) of the withdrawal base for allocating 100% of your policy value in Designated 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^SM 1.6 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	0.40%	0.35%
Income EnhancementSM Benefit	0.30%	0.50%

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. The rider fee percentage may increase due to an automatic step-up but will not exceed the maximum rider fee percentage in the fee table.

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 AND EXPENSE EXAMPLES section of this prospectus. See the prospectuses for the underlying fund portfolios for more information.

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Reduced Fees and Charges

We may at our discretion, reduce or eliminate certain fees and charges for certain policies (including employer-sponsored savings plans) which may result in decreased costs and expenses.

Revenue We Receive

This prospectus describes generally the payments that we (and/or our affiliates) may directly or indirectly receive from the underlying fund portfolios, their advisers, 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. We and/or our affiliate, Transamerica Capital, Inc. (“TCI”) who is the principal underwriter for the policies, indirectly receive 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 0.45% of the average daily assets of the certain underlying fund portfolios attributable to the policies and to certain other variable insurance products that we and our affiliates issue.

• Administrative, Marketing and Support Service Fees (“Support Fees”). As noted above, an investment adviser, subadviser, 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 adviser or subadviser 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.

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%

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 provided.

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TST: Because TST is managed by TAM, an affiliate of ours, there are additional benefits to us and our affiliates for amounts you allocate to the TST underlying fund portfolios, in terms of our and our affiliates’ overall profitability. These additional benefits may be significant. Payments or other benefits may be received from TAM. Such payments or benefits may be entered into for a variety of purposes, such as to allocate resources to us 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 2012 we received $112,349,723.11 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.

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 subadvisers 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 subadviser 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 subadvisers 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 subadvisers 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 affiliates involved in the distribution of the policies.

For the calendar year ended December 31, 2012, TCI or its affiliates received total revenue sharing payments in the amount of $4,254,521.64 from the following Fund managers and/or subadvisers to participate in TCI’s events: AEGON USA Investment Management • Alliance Bernstein Investments • American Funds • BlackRock Investment Management, LLC. • Fidelity Investments • Franklin Templeton Investments • GE Asset Management • Hanlon Investment Management Inc. • ING Clarion Real Estate Securities • Invesco AIM • Janus Capital • Jennison Associates • Legg Mason Capital Management • Logan Circle Investment Partners • Madison Asset Management • Morgan Stanley Investment Management • Natixis Global Asset Management • Oppenheimer Funds • Pacific Investment Management Company • Wellington Management Company.

Please note some of the aforementioned managers and/or subadvisers 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 subadvisers 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

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administering the underlying fund portfolios. We and our affiliates may profit from these payments.

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

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 ADDITIONAL FEATURES - 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.

You may elect to take up to the free amount once each policy year without incurring a surrender charge. Remember that any surrender you take will reduce the policy value, and the amount of the death benefit. See DEATH BENEFIT, for more details. A partial surrender also may have a negative impact on certain other benefits and guarantees of your policy.

Surrenders from qualified policies may be restricted or prohibited.

Surrenders may be subject to a surrender charge. Surrenders from the fixed account may be subject to an excess interest adjustment. Income taxes, federal tax penalties and certain restrictions may apply to any surrenders you make.

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^SM 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 record keeper, and other product providers.

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.

Note: The optional Access Rider eliminates all surrender charges during the accumulation phase. You can elect this rider only at the time you purchase the policy. There is an extra charge for this rider.

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

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good order all required information at our Administrative Office. We may defer such payment from the separate account if:

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

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

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

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, surrender (either full or partial), loan, or death benefit from the TA AEGON Money Market subaccount until the portfolio is liquidated.

Any payment or transfer request which is not in good order will cause a delay. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order.

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 surrenders (either full or partial), 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 (but not below the excess interest adjustment floor described in “Appendix - Excess Interest Adjustment Examples”). 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.

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.

The formula that will be used to determine the excess interest adjustment is:

S* (G-C)* (M/12)

S = Is the amount (before surrender charges, premium taxes and the application of any Guaranteed Minimum Death Benefits, if any) being surrendered, withdrawn, transferred, paid upon death, or applied to an income option that is subject to the excess interest adjustment;

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G = Is the guaranteed interest rate for the guaranteed period applicable to “S”; C = Is the current guaranteed interest rate then being offered on new premium payments for the next longer option period than “M”. If this policy form or such an option period is no longer offered, “C” will be the U.S. Treasury rate for the next longer maturity (in whole years) than “M” on the 25th day of the previous calendar month, plus up to 0.25%; and M = Number of months remaining in the current option period for “S”, rounded up to the next higher whole number of months.

* = multiplication

Please see “Appendix - Excess Interest Adjustment Examples” for more detailed information concerning the excess interest adjustment calculation.

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

• surrenders of cumulative interest credited;

• Nursing Care and Terminal Condition Withdrawal Option surrenders;

• Unemployment Waiver surrenders;

• transfers from a Dollar Cost Averaging fixed source;

• 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 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 surrender 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 we require.

We may change the specific requirements listed above, or add signature guarantees in other circumstances, at our discretion if we deem it necessary or appropriate to help protect against fraud. For current requirements, please refer to the requirements listed on the appropriate form or call us at
(800)525-6205.

You can obtain a Medallion signature guarantee from more than 7,000 financial institutions across the United States and Canada that participate in a Medallion signature guarantee program. The best source of a Medallion signature guarantee is a bank, savings and loan association, brokerage firm, or credit union with which you do business. A notary public cannot provide a Medallion signature guarantee. Notarization will not substitute for a Medallion signature guarantee.

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ANNUITY PAYMENTS

(THE INCOME PHASE)

You can generally change the annuity commencement date by giving us 30 days notice with the new date or age. The latest annuity commencement date generally cannot be after the date specified in your policy unless a later date is agreed to by us. The earliest annuity commencement date is at least 30 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 is eligible to and elects to continue the policy).

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 adjusted policy value to provide these annuity payments. If the adjusted policy value on the annuity commencement date is less than $2,000, we reserve the right to pay it in one lump sum in lieu of applying it under an annuity payment option. You can receive annuity payments monthly, quarterly, semi-annually, or annually. (We reserve the right to change the frequency if payments would be less than $50.)

In deciding on which annuity payment option to elect, you must decide if fixed or variable payments are better for you. If you choose to receive fixed 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.

You must also decide if you want your annuity payments to be guaranteed for the annuitant’s lifetime, a period certain, or a combination thereof. Generally, payments will be lower if you combine a period certain, guaranteed amount, or liquidity with a lifetime guarantee (e.g., Life Income with 10 years Certain and Life with Guaranteed Return of Policy proceeds). Likewise, payments will also generally be lower the longer the period certain (because you are guaranteed payments for a longer time).

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

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The annuity payment options are explained below. Some options are fixed only.

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.

Life Income (not available for adjusted ages greater than 85 for the No Period Certain and Life with Emergency Cash^SM options). You may choose between:

• No Period Certain (fixed or variable)-Payments will be made only during the annuitant’s lifetime. The last payment will be the payment immediately before the annuitant’s death.

• 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 (i.e., the adjusted policy value).

• Life with Emergency Cash^SM (fixed or variable)-Payments will be made during the annuitant’s lifetime. With the Life with Emergency Cash^SM feature, you are able to surrender all or a portion of the Life with Emergency Cash^SM benefit (unlike all other life

annuitization options which are not surrenderable). The amount you surrender must be at least $2,500. We will provide you with a Life with Emergency Cash^SM 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 adjusted policy value surrendered (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^SM benefit will continue through age 100 of the annuitant.

The Life with Emergency Cash^SM benefit is also a death benefit that is paid upon the death of the annuitant and is generally equal to the surrender value (i.e., the amount that would be available for surrender according to the Life with Emergency Cash^SM benefit schedule) 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 (not available for adjusted ages greater than 85). 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^SM (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^SM feature, you are able to surrender all or a portion of the Life with Emergency Cash^SM benefit. The amount you

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surrender must be at least $2,500. We will provide you with a Life with Emergency Cash^SM 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 adjusted policy value surrendered (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^SM benefit will continue through age 100 of the surviving joint annuitant.

The Life with Emergency Cash^SM 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 or we may limit certain options to ensure they comply with the applicable tax law provisions.

NOTE CAREFULLY

IF:

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

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

THEN:

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

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^SM; and

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

THEN:

• a Life with Emergency Cash^SM 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) or a later date if agreed to by us. If you do not elect an annuity payment option, the default option will be Life with 10 Years Certain (subject to certain exceptions for qualified policies). Please note, all optional benefits (including guaranteed minimum death benefits and living benefits) terminate upon annuitization.

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

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owner(s) will receive the death benefit instead of the listed beneficiary. The person receiving the death benefit may choose an annuity payment option (if you pick a variable annuity payment option fees and expenses will apply), or may choose to receive a lump sum. The guarantees of these death benefits are based on our claims-paying ability.

We will determine the amount of and pay the death benefit proceeds, if any are payable on a policy, upon receipt at our Administrative Office of satisfactory proof of the annuitant’s death, 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”). For policies with multiple beneficiaries, we may require due proof of death from all beneficiaries before paying the death proceeds. Please note, we may be required to remit the death benefit proceeds to a state prior to receiving “due proof of death.” See OTHER INFORMATION - Abandoned or Unclaimed Property.

Please Note: Such due proof of death must be submitted in good order to avoid a delay in processing the death benefit claim. Due proof requires selecting a payment option. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order.

The death benefit proceeds remain invested in the separate account in accordance with the allocations made by the policy owner until the beneficiary has provided us with due proof of death. Once the Company receives due proof of death, 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” written instruction to reallocate the investments in the separate account to the money market fund after the death of the annuitant. If there is more than one beneficiary, all beneficiaries must

agree to the reallocation instructions. This one-time reallocation will be permitted if the beneficiary provides satisfactory evidence of the annuitant’s death.

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 of the owner, then he or she may elect, if eligible, to continue the policy as the new annuitant and owner, instead of receiving the death benefit. All surrender charges will be waived.

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. Generally, upon the owner’s death (who is not the annuitant) the entire interest must be distributed within five years. See the SAI for a more detailed discussion of the distribution requirements under the Code.

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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:

• you are the owner and annuitant; and

• you die after the annuity commencement date; and

• the annuity payment option you selected did not have or no longer has a guaranteed period;

THEN:

• no additional payments will be made (there is no death benefit).

NOTE: If you elect the Life with Emergency Cash^SM and the annuitant dies before age 101, then a Life with Emergency Cash^SM death benefit equaling the amount available for surrender will be paid.

IF:

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

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

THEN:

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

Succession of Ownership

If an owner (who is not the annuitant) 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

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 Office;

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

• the guaranteed minimum death benefit, if any, (discussed below), plus premium payments, 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.

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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 (please see “Appendix - Death Benefit”) 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 0.35% annually.

Return of Premium Death Benefit

The Return of Premium Death Benefit is equal to:

• total premium payments; less

• any adjusted partial surrenders (please see “Appendix - Death Benefit”) as of the date of death.

This benefit is not available if you or the annuitant is 86 or older on the policy date. There is an extra charge for this death benefit of 0.15% annually.

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

Double Enhanced Death Benefit - No Longer Available

The death benefit under this option is the greater of 1 or 2 below:

1. The 6% Annually Compounding through age 80 Death Benefit, which is equal to:

• the total premium payments; less

• any adjusted partial surrenders;

• accumulated at an effective annual rate of 6% from each premium payment date and each surrender date to the earlier of the annuitant’s date of death or the annuitant’s 81st birthday.

2. The Monthly Step-Up through age 80 Death Benefit, which is equal to:

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

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

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

This benefit is not available if the owner or annuitant is age 76 or older on the policy date and requires you to invest only in certain “designated investment choices”. There is an extra charge for this death benefit of 0.80% annually.

Designated Investment Choices. If you elected the Double Enhanced Death Benefit, you must allocate 100% of your policy value to one or more of the

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designated investment options approved for the Double Enhanced Death Benefit. See “Appendix -Designated Investment Options” for a complete listing of available subaccounts.

Please note:

• All policy value must be allocated to one or more designated investment choices.

• You may transfer amounts among the designated investment choices; however, you cannot transfer any amount to any other subaccount if you elect this death benefit.

The Double Enhanced Death Benefit was not available if a guaranteed lifetime withdrawal benefit was chosen.

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.

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.

The formula used to calculate the adjusted partial surrender amount, for the guaranteed minimum death benefit offered in this prospectus, is: adjusted partial surrender = (amount of the gross partial surrender * value of the current death proceeds immediately prior to the gross partial surrender ) / policy value immediately prior to the gross surrender.

We have included a detailed explanation of this adjustment with examples 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.

TAX INFORMATION

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. The federal income tax consequences discussed herein reflects our understanding of current law, and the law may change. No representation is made regarding the likelihood of continuation of the present federal income tax law or of the current interpretations by the Internal Revenue Service. 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.

Introduction

Deferred annuity policies are a way of setting aside money for future needs like retirement. Congress recognized how important saving for retirement is and provided special rules in the Internal Revenue Code (the “Code”) for annuities. Simply stated, these rules generally provide that individuals will not be taxed on the earnings, if any, on the money held in an annuity policy until withdrawn. This is referred to as tax deferral. When a non-natural person (e.g., corporation or certain other entities other than tax-qualified trusts) owns a nonqualified policy, the policy will generally not be treated as an annuity for tax purposes. Thus, the owner must generally include in income any increase in the account value over the investment in the policy during each taxable year.

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

If you purchase the policy as an individual retirement annuity or as a part of a 403(b) plan, 457 plan, a pension plan, a profit sharing plan (including a 401(k) plan), or an employer sponsored retirement program, your policy is referred to as a qualified policy. There is no additional tax deferral benefit derived from placing qualified funds into a variable annuity. Features other than tax deferral should be considered in the purchase of a qualified policy. There are limits on the amount of contributions you can make to a qualified policy. Other restrictions may apply including terms of the plan in which you participate. To the extent there is a conflict between a plan’s provisions and a policy’s provisions, the plan’s provisions will control.

If you purchase the policy other than as part of any arrangement described in the preceding paragraph, the policy is referred to as a nonqualified policy.

You will generally not be taxed on increases in the value of your policy, whether qualified or nonqualified, until a distribution occurs (either as a surrender, withdrawal, or as annuity payments). Under certain circumstances, however, you may be subject to current taxation if you assign or pledge or enter into an agreement to assign or pledge any portion of the policy.

The Internal Revenue Service (“IRS”) has not reviewed the policy for qualification as an IRA annuity, 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 from a qualified plan/or policy.

Taxation of Us

We are at present taxed as a life insurance company under part I of Subchapter L of the Code. The separate account is treated as a part of us and, accordingly, will not be taxed separately as a “regulated investment company” under Subchapter M of the Code. We do not expect to incur any federal income tax liability with respect to investment income and net capital gains arising from the activities of the separate account retained as part of the reserves under the policy. Based on this expectation, it is anticipated that no charges will be made against the separate account for federal income taxes. If in future years, any federal income taxes are incurred by us with respect to the separate account, we may make a charge to that account. We may benefit from any dividends received or foreign tax credits attributable to taxes paid by certain underlying funds to foreign jurisdictions to the extent permitted under federal tax law.

Tax Status of the Policy

Diversification Requirements. In order for a nonqualified variable policy which is based on a segregated asset account to qualify as an annuity policy under Section 817(h) of the Code, the investments made by such account must be “adequately diversified” in accordance with Treasury Regulations. The Regulations apply a diversification requirement to each of the subaccounts. Each separate account, through its underlying fund portfolios and their portfolios, intends to comply with the diversification requirements of the Regulations. We have entered into agreements with each underlying fund portfolio company that require the portfolios to be operated in compliance with the Regulations but we do not have control over the underlying fund portfolio companies. The policy owners bear the risk that the entire contract could be disqualified as an annuity policy under the Code due to the failure of a subaccount to be deemed to be “adequately diversified.”

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Owner Control. In some circumstances, owners of variable policies who retain excessive control over the investment of the underlying separate account assets may be treated as the owners of those assets and may be subject to tax on income produced by those assets. In Revenue Ruling 2003-91, the IRS stated that whether the owner of a variable policy is to be treated as the owner of the assets held by the insurance company under the policy will depend on all of the facts and circumstances.

Revenue Ruling 2003-91 also gave an example of circumstances under which the owner of a variable policy would not possess sufficient control over the assets underlying the policy to be treated as the owner of those assets for federal income tax purposes. To the extent the circumstances relating to the issuance and ownership of a policy vary from those described in Revenue Ruling 2003-91, owners bear the risk that they will be treated as the owner of Separate Account assets and taxed accordingly.

We believe that the owner of a policy should not be treated as the owner of the underlying assets. We reserve the right to modify the policies to bring them into conformity with applicable standards should such modification be necessary to prevent owners of the policies from being treated as the owners of the underlying separate account assets. Concerned owners should consult their own tax advisers regarding the tax matter discussed above.

Distribution Requirements. The Code requires that nonqualified policies contain specific provisions for distribution of policy proceeds upon the death of any owner. In order to be treated as an annuity policy for federal income tax purposes, the Code requires that such policies provide that if any owner dies on or after the annuity starting dated and before the entire interest in the policy has been distributed, the remaining portion must be distributed at least as rapidly as under the method in effect on such owner’s death. If any owner dies before the annuity starting date, the entire interest in the policy must

generally be distributed 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 that 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 starting date, such owner’s surviving spouse is the sole beneficiary, under the nonqualified policy, then the policy may be continued with the surviving spouse as the new owner. If any owner is a non-natural person (except in the case of certain grantor trusts), then for purposes of these distribution requirements, the primary annuitant shall be treated as an owner and any death or change of such primary annuitant shall be treated as the death of an owner.

The nonqualified policies contain provisions intended to comply with these requirements of the Code. No regulations interpreting these requirements of the Code have yet been issued and thus no assurance can be given that the provisions contained in the policies satisfy all such Code requirements. The provisions contained in the policies will be reviewed and modified if necessary to assure that they comply with the Code requirements when clarified by regulation or otherwise.

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 or any riders 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 adviser for more information on this subject.

Taxation of Annuities

The following discussion assumes the policy qualifies as an annuity policy for federal income tax purposes.

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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, 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. A policy owned by a trust using the grantor’s social security number as its taxpayer identification number will be treated as owned by the grantor (natural person) for the purposes of our application of Section 72 of the Code. Consult a tax adviser for more information on how this may impact your policy.

Different Individual Owner and Annuitant

If the owner and annuitant on the policy are different individuals, there may be negative tax consequences to the owner and/or beneficiaries under the policy if the annuitant predeceases the owner including, but not limited, to the assessment of penalty tax and the loss of certain death benefit distribution options. You may wish to consult your legal counsel or tax adviser if you are considering designating a different individual as the annuitant on your policy to determine the potential tax ramifications of such a designation.

Annuity Starting Date

This section makes reference to the annuity starting date as defined in Section 72 of the Code and the applicable regulations. Generally, the definition of annuity starting date will correspond with the definition of annuity commencement date used in your policy and the dates will be the same. However, in certain circumstances, your annuity starting date and annuity commencement date will not be the same date. If there is a conflict between the definitions, we will interpret and apply the definitions in order to ensure your policy maintains its status as an annuity policy for federal income tax purposes. You may wish to consult a tax adviser for more information on when this issue may arise.

Taxation of Annuity Payments

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

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

• Fixed payments-by dividing the “investment in the policy” on the annuity starting date by the total expected return under the policy (determined under Treasury regulations) for the term of the payments. This is the percentage of each annuity payment that is excludable.

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

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

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

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

Taxation of Surrenders and Partial Withdrawals -Nonqualified Policies

When you surrender your policy, you are generally taxed on the amount that your surrender proceeds exceeds the “investment in the policy,” which is generally your premiums paid (adjusted for any prior surrenders or portions thereof that were not taxable). Partial withdrawals are generally treated first as taxable income to the extent of the excess in the policy over the “investment in the policy.” In general, loans, pledges, and assignments are taxed in the same manner as partial withdrawals and surrenders. All taxable amounts received under a policy are subject to tax at ordinary rather than capital gain tax rates.

If your policy contains an excess interest adjustment feature (also known as a market value adjustment), then your 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 adviser.

The 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 surrender withdrawals will be exempt from the penalty tax. They include, among others, any amounts: (1) paid on or after the taxpayer reaches age 59 ¹/₂; (2) paid after an owner dies; (3) paid if the taxpayer becomes disabled (as that term is defined in the Code); (4) paid in a series of substantially equal payments made annually (or more frequently) over the life of the taxpayer or the joint life of the taxpayer and the taxpayer’s designated beneficiary; (5) paid under an immediate annuity; or (6) which come from premium payments made prior to August 14, 1982.

Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions enumerated above. You may wish to consult a tax adviser for more information regarding the imposition of penalty tax.

Guaranteed Lifetime Withdrawal Benefits

For policies with a guaranteed lifetime withdrawal benefit the application of certain tax rules, particularly those rules relating to distributions from your policy, are not entirely clear. The tax rules for qualified policies may impact the value of these optional benefits. Additionally, the actions of the qualified plan as contract holder may cause the qualified plan participant to lose the benefit of the guaranteed lifetime withdrawal benefit. In view of this uncertainty, you should consult a tax adviser before purchasing this policy as a qualified policy.

Aggregation

All nonqualified deferred annuity policies that are issued by us (or our affiliates) to the same owner (policyholder) 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. If you are considering purchasing

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multiple policies from us (or our affiliates) during the same calendar year, you may wish to consult with your tax adviser regarding how aggregation will apply to your policies.

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.

Tax-Free Exchanges

Section 1035 of the Code provides that no gain or loss shall be recognized on the exchange of one annuity policy for another annuity contract or a qualified long-term care insurance contract. Generally, an annuity policy issued in an exchange for another annuity policy is treated as new for purposes of the penalty and distribution at death rules.

If the initial contribution is made as a result of an exchange or surrender of another annuity policy, we may require that you provide information relating to the federal income tax status of the previous annuity policy to us.

Revenue Procedure 2011-38 significantly eases the restrictions on partial transfers previously adopted by the IRS. Under Rev. Proc. 2011-38, a partial exchange will be treated as tax-free under Section 1035 of the Code if there are no distributions, from either annuity, within 180 days of the partial 1035 exchange and annuity payments that satisfy the

newly enacted partial annuitization rule of Section 72(a)(2) of the code will not be treated as a distribution from either the old or new policy.

Pursuant to interim guidance provided in IRS Notice 2011-68, the IRS confirmed that it is permissible to partially exchange a portion of the cash surrender value of an annuity for a qualified long-term care insurance contract, provided that the requirements of Section 1035 are met. However, further guidance is needed regarding the application of Rev. Proc. 2011-38 to such transfers. Please discuss the tax consequences of any contemplated 1035 exchange transaction with a competent tax adviser.

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, trusts, and estates whose income exceeds certain threshold amounts. While distributions from qualified policies are not subject to tax, such distributions may be includible in income for purposes of determining whether certain Medicare Tax thresholds have been met. As such, distributions from you qualified policy could cause your other investment income to be subject to the tax. Please consult a tax adviser for more information.

Taxation of Surrenders and Partial Withdrawals - Qualified Policies

In the case of a withdrawal under a qualified policy (other than from a deferred compensation plan under Section 457 of the Code), a pro rata portion of the amount you receive is taxable, generally based on the ratio of your “investment in the policy” to your total account balance or accrued benefit under the retirement plan. Your “investment in the policy”

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generally equals the amount of any non-deductible purchase payments made by you or on your behalf. If you do not have any non-deductible purchase payments, your investment in the contract will be treated as zero.

The IRS 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 and/or living benefit options and riders elected may need to be considered in calculating minimum required distributions. Consult a competent tax adviser before purchasing an optional death benefit.

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 which are similar to the penalty exceptions for distributions from nonqualified policies discussed above. 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.

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: (1) if distributed in a lump sum, these amounts are taxed in the same manner as a surrenders; (2) if distributed via partial withdrawals, these amounts are taxed in the same manner as partial surrenders; or (3) if distributed under an annuity payment option, these amounts are taxed in the same manner as annuity payments.

Transfers, Assignments or Exchanges of Policies

A transfer of ownership or assignment of a policy, the designation of an annuitant or payee or other beneficiary who is not also the owner, the selection of certain annuity starting 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.

Separate Account Charges

It is possible that the IRS 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 IRS 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 adviser prior to selecting any optional benefit under the policy.

Withholding

The portion of any distribution under a policy that is includable in gross income will be subject to federal income tax withholding unless the recipient of such distribution elects not to have federal income tax withheld. Election forms will be provided at the time distributions are requested or made. The amount of withholding varies according to the type of distribution. For qualified policies taxable, “eligible rollover distributions” from Section 401(a) plans, Section 403(a) annuities, Section 403(b)

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tax-sheltered annuities, and governmental 457 plans are subject to a mandatory federal income tax withholding of 20%. An eligible rollover distribution is any distribution from such a plan, other than specified distributions such as distributions required by the Code, distributions in a specified annuity form or hardship distributions. The 20% withholding does not apply, however, to nontaxable distributions or if (i) the employee (or employee’s spouse or former spouse as beneficiary or alternate payee) chooses a “direct rollover” from the plan to a tax-qualified plan, IRA, Roth IRA or 403(b) tax-sheltered annuity or to a governmental 457 plan that agrees to separately account for rollover contributions; or (ii) a non-spouse beneficiary chooses a “direct rollover” from the plan to an IRA established by the direct rollover.

Federal Estate, Gift and Generation-Skipping Transfer Taxes

Beginning in 2013, the federal estate tax, gift tax and generation-skipping transfer (“GST”) tax exemptions and maximum rates are $5,000,000 indexed for inflation (currently $5,250,000) and 40% respectively.

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

Federal Estate Taxes. While no attempt is being made to discuss the Federal estate tax implications of the policy in detail, a purchaser should keep in mind that the value of an annuity policy owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent’s gross estate. Depending on the terms of the annuity policy, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the

designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning adviser for more information.

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

Annuity Purchases by Residents of Puerto Rico

The IRS 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 Non-resident Aliens and Foreign Corporations

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

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Foreign Account Tax Compliance Act (“FATCA”)

Beginning in 2014, we may be required to withhold at a rate of 30% under FATCA on certain distributions to foreign financial institutions and non-financial foreign entities holding accounts on behalf of and/or the assets of U.S. persons unless the foreign entities provide us with certain certifications regarding their status under FATCA on the applicable IRS forms. Prospective foreign entities are advised to consult with a competent tax adviser regarding the application of FATCA to their particular situation.

Qualified Policies

The qualified policy is designed for use with several types of tax-qualified retirement plans which are briefly described below. The tax rules applicable to participants and beneficiaries in tax-qualified retirement plans vary according to the type of plan and the terms and conditions of the plan. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from contributions in excess of specified limits, distributions prior to age 59 ¹/₂ (subject to certain exceptions), distributions that do not conform to specified commencement and minimum distribution rules, and in other specified circumstances. The distribution rules under Section 72(s) of the Code do not apply to annuities provided under a plan described in Sections 401(a), 403(a), 403(b), 408 or 408A of the Code or to an annuity that is qualified funding asset as defined in the Code Section 130(d) of the Code. Some retirement plans are subject to distribution and other requirements that are not incorporated into the policies or our policy administration procedures. Owners, participants, and beneficiaries are responsible for determining that contributions, distributions, and other transactions with respect to the policies comply with applicable law.

Traditional Individual Retirement Annuities. In order to qualify as a traditional individual retirement annuity under Section 408(b) of the Code, a policy must satisfy certain conditions: (i) the owner must be the annuitant; (ii) the policy generally is not transferable by the owner, e.g., the owner may not designate a new owner, designate a contingent owner or assign the policy as collateral security; (iii) subject to special rules, the total premium payments for any calendar year may not exceed the amount specified in the Code for the year, except in the case of a rollover amount or contribution under Section 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) or 457(e)(16) of the Code; (iv) annuity payments or partial surrenders according to the requirements in the IRS regulations 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.

SIMPLE and SEP IRAs are types of IRAs that allow employers to contribute to IRAs on behalf of their employees. SIMPLE IRAs permit certain small employers to establish SIMPLE plans as provided by section 408(p) of the Code, under which employees may elect to defer to a SIMPLE IRA a specified percentage of compensation. The sponsoring employer is required to make matching or non-elective contributions on behalf of employees. Distributions from SIMPLE IRAs are subject to the

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same restrictions that apply to IRA distributions and are taxed as ordinary income. Subject to certain exceptions, premature distributions prior to age 59^1/2 are subject to a 10 percent penalty tax, which is increased to 25 percent if the distribution occurs within the first two years after the commencement of the employee’s participation in the plan. SEP IRAs permit employers to make contributions to IRAs on behalf of their employees, up to a specified dollar amount for the year and subject to certain eligibility requirements as provided by Section 408(k) of the Code. Distributions from SEP IRAs are subject to the same restrictions that apply to IRA distributions and are taxed as ordinary income.

Roth Individual Retirement Annuities (Roth IRA). The Roth IRA, under Section 408A of the Code, contains many of the same provisions as a traditional IRA. However, there are some differences. First, the contributions are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA, a traditional IRA or other allowed qualified plan. A rollover from or conversion of an IRA to a Roth IRA may be subject to tax. The ability to make cash contributions to Roth IRAs is available to individuals with earned income and whose modified adjusted gross income is under a specified dollar amount for the year. Subject to special rules, the amount per individual that may be contributed to all IRAs (Roth and traditional) is the deductible amount specified in the Code for the year. 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 one of the following attaining age 59^1/2, to pay for qualified first time home buyer expenses (lifetime maximum of $10,000), or due to death or disability. All other distributions are subject to income tax when made from earnings and may be subject to a penalty tax unless an exception applies. Please note that specific tax ordering rules apply to Roth IRA distributions. Unlike the traditional IRA, there are no minimum

required distributions during the owner’s lifetime; however, minimum required distributions at death are generally the same as for traditional IRAs.

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. 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. For policies issued after 2008, amounts attributable to non-elective contributions may be subject to distribution restrictions specified in the employer’s section 403(b) plan. Employers using the policy in connection with Section 403(b) plans may wish to consult with their tax adviser.

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

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sharing of confidential information about you, the policy, and transactions under the policy and any other 403(b) policies or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or record keeper, and other product providers.

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. Contributions to and distributions from such plans are limited by the Code and may be subject to penalties.

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. 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 non-governmental Section 457 plan are taxable and are subject to federal income tax withholding as wages. Contributions to and distributions from such plans are limited by the Code and may be subject to penalties.

Ineligible Owners-Qualified

We currently will not issue new policies to/or for the following plans: 403(a), 403(b), 412(i)/412(e)(3), 419, 457 (we will in certain limited circumstances accept 457(f) plans), employee stock ownership plans, Keogh/HR-10 plans and any other types of plans at our sole discretion.

Qualified Plan Distribution

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 is a “5 percent owner” (as defined in the Code), or in the case of an IRA (other than a Roth IRA which is not subject to the lifetime required minimum distribution rules), distributions generally must begin no later than April 1 of the year following 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. We do not attempt to provide more than general information about the use of the policy with the various types of retirement plans. Purchasers of policies for use with any retirement plan should consult their legal counsel and tax adviser regarding the suitability of the policy.

The Code generally requires that interest in a qualified policy be non-forfeitable. 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 adviser before purchasing a bonus rider as part of a qualified policy.

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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.

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.

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.

ADDITIONAL FEATURES

Systematic Payout Option

You can select at any time (during the accumulation phase) to receive regular surrenders (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 surrenders made per year, where: (1) up to 10% of your premium payments (reduced by prior surrenders 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. The amount of your payment is established when you select the option. The amount available is recalculated on each policy anniversary thereafter while the Systematic Payout Option is in effect.

This amount may be taken free of surrender charges. Any payment in excess of the cumulative interest credited at the time of the payment may be subject to an excess interest adjustment. Any payment in excess of your remaining surrender charge free amount may be subject to a surrender charge.

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

If you request an additional surrender that exceeds the surrender charge free amount while a Systematic Payout Option is in effect, then the Systematic Payout Option will terminate. If the request does not exceed the surrender charge free amount, future systematic payment will be recalculated based on the remaining free amounts.

Keep in mind that surrenders 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. There is no charge for this benefit.

Initial Payment Guarantee

You may only elect to purchase the Initial Payment Guarantee which provides annually stabilized payments that are guaranteed to never be less than a percentage of the initial variable annuity payment at

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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 (i.e., your payment is “net” the initial payment guarantee fee, mortality and expense risk fee, and administrative charges).

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.

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.

Access Rider

You may elect to purchase the optional “Access Rider” which eliminates all surrender charges during the accumulation phase. You can only elect this rider at the time you purchase your policy.

Please note that the Access Rider does not eliminate any excess interest adjustment, nor does it modify other provisions including the systematic payout option. The Access Rider also does not eliminate the surrender charge under the Life with Emergency Cash^® annuity payment options.

Rider Fee. A rider fee equal to an effective annual rate of 0.35% of the daily net asset value in the separate account is deducted in calculating the accumulation unit values. Please note we may credit interest in the fixed account at a lower rate if you select this rider.

Termination. The rider is irrevocable.

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Please note: The rider fee is deducted in all years during the accumulation phase, even if you have not made any premium payments in the immediately preceding five years.

The Access 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 Access Rider.

Additional Death Distribution

The optional Additional Death Distribution rider pays an additional amount (based on rider 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 are policy gains accrued and not previously withdrawn since the rider date. 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 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 Rider” 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 is eligible to and elects to continue the policy as the new owner 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 if the Additional Death Distribution benefit is still being offered. See TAX INFORMATION - Tax Status of the Policy - Distribution Requirements. (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

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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 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 if still being offered; 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.

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.

Additional Death Distribution+ Rider

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

Additional Death Distribution+ Rider 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 Additional Death Distribution + 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 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+ Rider 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+ Rider” for an example that illustrates the additional death benefit payable as well as the effect of a partial surrender on the Additional Death Distribution+ Rider benefit amount.

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

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Additional Death Distribution+ Rider. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider through age 75 if the Additional Death Distribution + benefit is still being offered. See TAX INFORMATION - Tax Status of the Policy - Distribution Requirements. (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 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+ Rider may not be re-elected, if still being offered, for one year.

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

The Additional Death Distribution+ 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 Additional Death Distribution+ Rider.

Nursing Care and Terminal Condition Withdrawal Option

No surrender charges or excess interest adjustments 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).

You may exercise this benefit at any time during the accumulation phase. This benefit is also available to the annuitant or annuitant’s spouse if the owner is not a natural person. There is no restriction on the maximum amount you may surrender under this benefit. There is no charge for 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 surrender charges or excess interest adjustments 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.

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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 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.

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:

• 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. A minimum of $500 per transfer is required. 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 either the fixed account or money market (see the Dollar Cost Averaging election form).

• 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

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traditional program. A minimum of $500 per transfer is required ($3,000 or $6,000 to start a 6-month or 12-month program, respectively).

A Dollar Cost Averaging program will begin once we have received in good order all necessary information and the minimum required amount. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order. Please note: Dollar Cost Averaging programs will not begin on the 29th, 30th, or 31st. If a program would have started on one of those dates, it will start on the 1st business day of the following month. If we receive additional premium payments while a Dollar Cost Averaging program is running, 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:

• the additional premium payments will be allocated according to the current payment allocations at the time and will not reactivate a completed Dollar Cost Averaging program. (New Dollar Cost Averaging instructions are required to start a new Dollar Cost Averaging program once the previous Dollar Cost Averaging program has completed.)

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 among the subaccounts as identified in the previous Dollar Cost Averaging program.

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. Transfers from a Dollar Cost Averaging fixed source are not subject to an excess interest adjustment.

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A Dollar Cost Averaging program can be used in conjunction with a guaranteed minimum withdrawal benefit (subject to any investment restrictions involving the source). 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. Asset Rebalancing can be used in conjunction with a guaranteed minimum withdrawal benefit. Please note, any amounts rebalanced may be immediately transferred to the PAM investment choices or OA subaccounts as applicable under the Portfolio Allocation Method or Open Allocation Method. 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 Income Link^SM Rider, the Retirement Income Max^SM Rider or the Retirement Income Choice^SM 1.6 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, if any, is appropriate for you.

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

• Retirement Income Choice^SM Rider

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

• Retirement Income Choice^SM 1.4 Rider

• Retirement Income Choice^SM 1.2 Rider

See Rider Grid for additional information on each of these riders.

Living Benefits Rider

You may elect to purchase the optional Living Benefits Rider (also known as Guaranteed Principal Solution^SM 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.

• 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.)

• 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.

Guaranteed Minimum Accumulation Benefit of Living Benefit Rider

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. 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, even withdrawals under the guaranteed minimum withdrawal benefits, 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 surrender charges or 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 (the policy value will then be subject to investment risk). This addition will not increase your “principal back” or “for life” total withdrawal bases. 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 of Living Benefit Rider

If you elect the Living Benefits Rider, we will provide a maximum annual withdrawal amount (first as withdrawals from your policy value or, if necessary, as payments from us) 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

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

Example: Assume you make a single premium payment of $100,000 and you have not made any withdrawals or additional premium payments. If you withdraw $6,000, that would be an excess withdrawal of $1,000 ($6,000 - $5,000) under the for life guarantee but not under the principal back guarantee.

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 surrender charge or 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.)

• We will not refund rider charges that have been paid up to the point of terminating the policy or receiving annuity payments.

Withdrawals under the guaranteed minimum withdrawal benefit also:

• reduce your policy value;

• reduce the guaranteed future value;

• reduce your death benefit and other benefits;

• may be subject to surrender charges or excess interest adjustments;

• may be subject to income taxes and federal tax penalties (See TAX INFORMATION).

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 taxpayer reaches age 59 ¹/₂.

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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).

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 (which cannot exceed the maximum annual withdrawal amount at that time) and frequency (annually, semi-annually, quarterly or monthly) of future withdrawals. Once selected, the amount and frequency of future withdrawals 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. 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

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withdrawal amount on the rider date is the policy value. 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).

We will calculate separate minimum remaining withdrawal amounts for the “principal back” and “for life” guarantees. It is important to calculate separate minimum remaining withdrawal amounts because they can provide different payment amounts not only upon reaching exhaustion but also in certain situations involving continuation after the annuitant’s death.

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 surrender charge or 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 the greater of the dollar amount of the excess withdrawal or 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 if the policy value is less than the applicable base.

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

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the PAM TA AEGON U.S. Government Securities - 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 necessary to support the guarantees under the rider. We will transfer amounts to the PAM investment choices proportionally from all your variable investment choices. Currently, PAM transfers are being made to the PAM TA AEGON U.S. Government Securities - Service Class subaccount. We will not transfer amounts to the PAM investment choices if your policy value is greater than guarantees under the rider.

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 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

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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 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” for more detail regarding the workings of the mathematical model.

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 providing us the required 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.

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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;

• 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.

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 Withdrawal Options and Percentages section below); 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. If you elect the Income Link^SM rider you cannot elect another GLWB. The guaranteed lifetime withdrawal benefit is based on the claims-paying ability of Transamerica.

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 a non-Income Link^SM rider systematic withdrawal reduces your withdrawal base to zero; 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 below.

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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 and the surviving spouse was eligible to and elected to continue the policy), 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;

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• reduce your base policy death benefit and other benefits;

• may be subject to surrender charges or excess interest adjustments;

• 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 below).

The annual rider withdrawal amount is zero until the 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 below.

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 19th, and stopped it

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on December 21st of that same year, you could not restart a new systematic withdrawal program until August 19th of the following year.)

If your policy value reaches zero by other than an excess withdrawal, then you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. If your policy value reaches zero by other than an excess withdrawal, we will, unless instructed otherwise, disburse any remaining minimum required distribution amount for the current rider year and set up monthly payments beginning in the next rider year according to your guarantees.

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 “ Appendix - 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. 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 and rider fee. 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

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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^SM rider systematic withdrawal occurred, or (2) the policy value on the rider anniversary. If neither value is greater than the current withdrawal base, no automatic step-up will occur.

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 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 above 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 approved for the Income Link^SM Rider. See “Appendix - Designated Investment Options” for a complete listing of available subaccounts.

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 is eligible to and elects to

continue 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.

• This option may not be permitted in the case of non-natural owners.

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 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 ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES) 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

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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*0.009*(91/365)

= 900*(91/365)

= $224.38

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 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 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.

Example 2: Calculation for the first quarter fee assuming initial withdrawal base from Example 1 above, plus an adjustment for an additional premium payment of $10,000 made with 20 days remaining in the first rider quarter. The withdrawal base change equals $100,000. The fee adjustment is:

= 10,000*0.009*(20/365)

= 90*(20/365)

= $4.93

Total fee assessed at the end of the first rider quarter (assuming no further fee adjustments):

= 4.93 + 224.38

=$229.31

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). The use of the joint life option may not be permitted in the case of certain non-natural owners.

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 was eligible to and elected to continue 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);

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• 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 (this option also guarantees that if the annuitant dies before the sum of annuity payments equals the policy value on the maximum annuity commencement date, the annuitant’s beneficiary will receive a final payment equal to the difference). 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.

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. The guaranteed lifetime withdrawal benefit is based on the claims-paying ability of Transamerica.

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 - Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders” 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

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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.

• Any amount of 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 and may cause you to lose the benefit of this rider.

• Upon the death of the annuitant (or the death of the surviving spouse if the joint option is elected and the surviving spouse was eligible to and elected to continue the policy), 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 surrender charges or excess interest adjustments;

• 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

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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 - Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders” 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. If your policy value reaches zero by other than an excess withdrawal, we will, unless instructed otherwise, disburse any remaining minimum required distribution amount for the current rider year and set up monthly payments beginning in the next rider year according to your guarantees.

• 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 “Appendix - Designated Investment Options.”)

For riders issued on or after December 12, 2011.

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	4.30%	3.80%
65-79	5.30%	4.80%
³80	6.30%	5.80%

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.

For riders issued before December 12, 2011.

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%

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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. 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 and rider fee. 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. If neither value is greater than the current withdrawal base, or the withdrawal base is increased by any growth percentage, no automatic step-up will occur. 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. Please note, the increase is part of the automatic step-up, and if no automatic step-up occurs then there will be no withdrawal percentage increase.

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

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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 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. Any amount of 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 - Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders” 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 approved for the Retirement Income Max^SM Rider. See “Appendix - Designated Investment Options” for a complete listing of available subaccounts.

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 is eligible to and elects to continue 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.

• This option may not be permitted in the case of certain non-natural owners.

Retirement Income Max^SM Rider Fees

For riders issued on or after December 12, 2011.

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 ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES) 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*0.0125*(91/365)

=1,250*(91/365)

=$311.64

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 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(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 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 an adjustment for an additional premium payment of $10,000 made with 20 days remaining in the first rider quarter. The withdrawal base change equals $10,000.

The fee adjustment is:

=10,000*0.0125*(20/365)

=125*(20/365)

=$6.85

Total fee assessed at the end of the first rider quarter (assuming no further rider fee adjustments):

=6.85 + 311.64

=$318.49

We will also deduct all rider fees pro rata upon full surrender of the policy or other termination of the rider.

For riders issued before December 12, 2011.

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 ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES) 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

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order, at our Administrative 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 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 an adjustment for an additional premium payment of $10,000 made with 20 days remaining in the first rider quarter. The withdrawal base change equals $10,000.

The fee adjustment is:

=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). The use of joint life option may not be permitted in the case of certain non-natural owners.

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 was eligible to and elected to continue 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;

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• 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.

Retirement Income Choice^SM 1.6 Rider

You may elect to purchase the optional Retirement Income Choice^SM 1.6 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. 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^SM 1.6 rider for a qualified policy. If you elect the Retirement Income Choice^SM 1.6 rider you cannot elect another GLWB. The guaranteed lifetime withdrawal benefit is based on the claims-paying ability of Transamerica.

Retirement Income Choice^SM 1.6 – 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.

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

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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 investment choices. You should consult with your registered representative to assist you in determining whether these investment choices are suited for your financial needs and risk tolerance.

• Any amount of 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 and may eliminate the benefit.

• 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 and the surviving spouse was eligible to and elected to continue the policy), the Retirement Income Choice^SM 1.6 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 surrender charges or excess interest adjustments;

• 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 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 by other than an excess withdrawal, then you cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. If your policy value reaches zero by other than an excess withdrawal, we will, unless instructed otherwise, disburse any remaining minimum

89

required distribution amount for the current rider year and set up monthly payments beginning in the next rider year according to your guarantees.

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 “ Appendix - 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	4.0%	3.5%
65-79	5.0%	4.5%
³80	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. 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, 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

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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. If neither value is greater than the current withdrawal base or the withdrawal base increased by any growth, no automatic step-up will occur. 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. Please note, the increase is part of the automatic step-up and if no automatic step-up occurs then there will be no withdrawal percentage increase.

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 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. Any amount of 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 - Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders” 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 magnified if the policy value is less than the withdrawal base. See the “Appendix - Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders” for examples showing the effect of 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.

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

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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.)

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 - Adjusted Partial Surrenders -Guaranteed Lifetime Withdrawal Benefit Riders” for examples showing the effect of hypothetical withdrawals in more detail.

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 corresponding designated allocation groups approved for the Retirement Income Choice^SM 1.6 Rider. See “Appendix - Designated Investment Options” for a complete listing of available subaccounts.

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. 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 Resets. You can effectively “reset” the withdrawal base to the policy value using a manual process under which your current rider is terminated and a new rider is issued. You can only elect a reset during the 30 day periods following each successive fifth rider anniversary and if all other rider issue requirements are met. When the new rider is issued, the rider withdrawal amount and, if applicable, the rider death benefit will be recalculated. Your new rider will have a new rider date, new rider fee percentage (which may be higher than your current rider fee percentage), and its own terms and benefits (which may not be as advantageous as the current rider). The new rider date will be the date the Company receives all necessary information in good order. Please note that this “reset” procedure may be referred to as a “manual upgrade” in your policy rider and other materials.

Please note:

• Resets, unlike automatic step-ups, occur only if you so elect during the 30 day window following each successive fifth rider anniversary.

• Resets result in the purchase of a new rider whose terms may be more or less favorable than the current rider whereas automatic step-ups do not require termination of the existing rider and repurchase of a new rider (although fees may increase at the time of an automatic step-up).

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• Policy owners may decide to terminate an existing rider if it no longer meets their needs and then elect a new available rider that does.

Retirement Income Choice^SM 1.6 – Additional Options

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

• Death Benefit;

• Joint Life; and

• Income Enhancement^SM.

There is an additional fee if you elect the Death Benefit and/or the Income Enhancement^SM 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^SM 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^SM 1.6 Rider Fees below.

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 DEATH BENEFIT.

Rider Death Benefit. The rider death benefit on the rider date is the policy value. 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 - Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders” 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 resets 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 is eligible to and elects to continue 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

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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 adjustment differs from the adjusted partial surrender amount for the Guaranteed Minimum Death Benefits described in DEATH BENEFIT - Guaranteed Minimum Death Benefits. Accordingly, withdrawals may effect the additional death benefit differently than the Guaranteed Minimum Death Benefits.

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 is eligible to and elects to continue 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 reset if the annuitant or annuitant’s spouse is 86 or older (lower if required by state law).

• This option may not be permitted in the case of certain non-natural owners.

3. Income Enhancement^SM Option. If you elect this rider, you can also elect to have your withdrawal percentage increase to 150% of the non-income enhanced withdrawal percentage 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^SM 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^SM Option if you are confined in an assisted living facility or a residential care facility.

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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;

• 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^SM 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^SM 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^SM 1.6 Fees

Retirement Income Choice^SM 1.6 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. 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 ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES) times the withdrawal base.

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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.

The following example uses assumed policy values as follows: Group A - $50,000; Group B - $30,000; and Group C - $20,000:

Example 1: Calculation at rider issue for the first quarter fee assuming an initial withdrawal base of $100,000

= 100,000 * [(50,000*0.0155) +

(30,000*0.0110) + (20,000*0.0070)] /100,000 * (91/365)

= 100,000 * (775 + 330 + 140) / 100,000 * (91/365)

= 100,000 * 1,245/100,000 * (91/365)

= 1,245 * (91/365)

= $310.40

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 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 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 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 an adjustment for an additional premium payment of $10,000 made with 20 days remaining in the first rider quarter (allocated as in Example 1). The withdrawal base change equals $10,000. The fee adjustment is:

= 10,000*[(5,000*0.0155) + (3,000*0.0110) + (2,000*0.0070)] / 10,000*(20/365)

= 10,000*(77.50 + 33 + 14) / 10,000*(20/365)

= 10,000*124.50/10,000*(20/265)

= 124.50*(20/365)

= $6.82

Total fee assessed at end of first rider quarter (assuming no further fee adjustments):

= 6.82 + 310.40

= $317.22

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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 for that quarter. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

Example 3. Calculation for $5,000 fund transfer from Group A (with $3,000 going into Group B and $2,000 into Group C) occurring during second quarter with 25 days remaining in the rider quarter, assuming:

Withdrawal Base = $104,590.16     Policy Value = $90,000

= 104,590.16*[(-5,000*0.0155) + (3,000*0.0110) + (2,000*0.0070)] / 90,000*(25/365)

= 104,590.16*(-77.50 + 33 + 14) / 90,000*(25/365)

= 104,590.16* -30.50/90,000*(25/365)

= -35.44*(25/365)

= -2.43

Total fee assessed at end of the second rider quarter (assuming no further rider fee adjustments):

= 310.40 – 2.43

= $307.97

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 ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES). 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^SM 1.6 Rider Issue Requirements

The Company will not issue the Retirement Income Choice^SM 1.6 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). The use of the joint life option may not be permitted in the case of certain non-natural owners.

Termination

The Retirement Income Choice^SM 1.6 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 was eligible to and elected to continue 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 (this option also guarantees that if the annuitant dies before the sum of all annuity payments equals the policy value, and rider death benefit if elected, on the maximum annuity commencement date, the annuitant’s beneficiary will receive a final payment equal to the difference). Please contact us for more information concerning your options.

The Retirement Income Choice^SM 1.6 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^SM 1.6 rider.

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OTHER INFORMATION

Ownership

You, as owner of the policy, exercise all rights under the policy. You can generally change the owner at any time by notifying us in writing at our Administrative Office. There maybe limitations on your ability to change the ownership of a qualified plan. 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 in our Administrative Office. If more than one beneficiary is designated, and the owner fails to specify their interests, they will share equally. If, upon the death of the annuitant, there is a surviving owner(s), then the surviving owner(s) automatically takes the place of any beneficiary designation.

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 (for replacements the right cancel period is generally 30 days), 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 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 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 they are received in good order. “Good order” means the actual receipt of the instructions relating to the requested transaction in writing (or, when appropriate, by telephone or electronically), along with all forms, information and supporting legal documentation necessary to effect the transaction. This information and documentation generally includes, to the extent applicable to the transaction: your completed application; the policy number; the transaction amount (in dollars or percentage terms); the names and allocations to and/or from the Subaccounts affected by the requested transaction; the signatures of all policy owners (exactly as registered on the Policy) if necessary; Social Security Number or Taxpayer I.D.;

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and any other information or supporting documentation that we may require, including any spousal or joint owner’s consents. With respect to purchase requests, “good order” also generally includes receipt of sufficient funds to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time.

“Received” or receipt in good order generally means that everything necessary must be received by us, at our Administrative Office specified in the Glossary of Terms. However, in certain cases where applications or transaction requests are transmitted electronically through or by a broker/dealer, “receipt” can mean the point in time when the application or transaction request is electronically transmitted by the broker/dealer (or other financial intermediary), provided that we actually receive the application or transaction request promptly and in good order. We reserve the right to reject electronic transactions that do not meet our requirements.

Regulatory Modifications to Policy

We reserve the right to amend the policy or any riders attached thereto as necessary to comply with specific direction provided by state or federal regulators, through change of law, rule, regulation, bulletin, regulatory directives or agreements.

Certain Offers

We may pay you more than your current cash value for your voluntary participation in certain offerings. We will notify you of the terms of any such offers.

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 there may be a new surrender charge period under this annuity and other charges may be higher (or lower) and the benefits under this annuity may be different. You should not exchange 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

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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.

Abandoned or Unclaimed Property

Every state has unclaimed property laws that generally provide for escheatment to the state of unclaimed property (including proceeds of annuity, life and other insurance policies) under various circumstances. In addition to the state unclaimed property laws, we may be required to escheat property pursuant to regulatory demand, finding, agreement or settlement. To help prevent such escheatment, it is important that you keep your

contact and other information on file with us up to date, including the names, contact information and identifying information for owners, insureds, annuitants, beneficiaries and other payees. Such updates should be communicated in a form and manner satisfactory to us.

Legal Proceedings

We, like other life insurance companies, are subject to regulatory and legal proceedings, including class action lawsuits, in the ordinary course of our business. Such legal and regulatory matters include proceedings specific to us and other proceedings generally applicable to business practices in the industry in which we operate. In some lawsuits and regulatory proceedings involving insurers, substantial damages have been sought and/or material settlement payments have been made. Although the outcome of any litigation or regulatory proceeding cannot be predicted with certainty, at the present time, we believe that there are no pending or threatened proceedings or lawsuits that are likely to have a material adverse impact on the separate account, on TCI’s ability to perform under its principal underwriting agreement, or on our ability to meet our obligations under the policy.

We are currently being audited on behalf of multiple states’ treasury and controllers’ offices for compliance with laws and regulations concerning the identification, reporting and escheatment of unclaimed benefits or abandoned funds. The audits focus on insurance company processes and procedures for identifying unreported death claims, and their use of the Social Security Master Death File to identify deceased policy and contract holders. In addition, we are the subject of multiple state Insurance Department inquiries and market conduct examinations with a similar focus on the handling of unreported claims and abandoned property. The audits and related examination activity may result in additional payments to beneficiaries, escheatment of funds deemed abandoned, administrative penalties

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and changes in our procedures for the identification of unreported claims and handling of escheatable property. We do not believe that any regulatory actions or agreements that result from these examinations will have a material adverse impact on the separate account, on TCI’s ability to perform under its principal underwriting agreement, or on our ability to meet our 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 policy 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.

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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 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 policies were previously issued through Separate Account VA EE. Effective close of business April 30, 2013, Separate Account VA EE was consolidated into Separate Account VA B. 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.

Separate Account Consolidation

Effective on April 30, 2013 after the close of business, Transamerica Life Insurance Company consolidated Separate Account VA EE with Separate Account VA B, with Separate Account VA B being the surviving Separate Account after such consolidation (the “Consolidation”). The Consolidation did not affect the terms of, or the rights and obligations under your policy, other than to reflect the change to the name of the separate account. The number of accumulation units, the accumulation unit values for the subaccounts in which you invest, and the subaccounts available under the policy did not change as a result of the Consolidation. Your policy value immediately after the Consolidation was the same as the value immediately before the Consolidation. The Consolidation did not result in any adverse tax consequences for any policy owners. Until we amend all forms related to the policies, some forms may still refer to the prior name of the separate account.

The Funds

At the time you purchase your policy, you may allocate your premium to subaccounts. These are subdivisions of our separate account, an account that

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keeps your policy assets separate from our company assets. The subaccounts then purchase shares of mutual funds set up exclusively for variable annuity or variable life insurance products. These are not the same mutual funds that you buy through your investment professional even though they may have similar investment strategies and the same portfolio managers. Each underlying fund portfolio has varying degrees of investment risk. Underlying fund portfolios are also subject to separate fees and expenses such as management fees and operating expenses. “Master-feeder” or “fund of funds” invest substantially all of their assets in other funds and will therefor bear a pro-rata share of fees and expenses incurred by both funds. This will reduce your investment return. Read the underlying fund portfolio prospectuses carefully before investing. We do not guarantee the investment results of any underlying fund portfolio. Certain underlying fund portfolios may not be available in all states and in all share classes. Please see “Appendix - Portfolios Associated with the Subaccounts” for additional information.

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.

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 5.5% 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

103

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 guarantees.

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 2012, TCI, in connection with the sales of our policies, made flat fee payments to several selling firms ranging from $15,000 to $500,000, and payments of between 0.10% and 0.50% on new sales. TCI also paid selling firms special fees based on new sales and/or assets under management.

During 2012, we and/or TCI had such “preferred product” arrangements with the following selling firms:

AXA Advisors LLC • BBVA Compass Investment Solutions, Inc. • CCO Investment Services Corp. • Centarus Financial Inc. • CFD Investments, Inc. • Citi AUM • Equity Services Inc. • Financial Network Invest Corporation • FSC Securities Corporation • Gary Goldberg & Co., Inc. • Genworth Financial Investment Services • Hantz Financial Services Inc. • Huntington Investment Company • ING Financial Partners • Invest Financial Corporation • Investacorp, Inc. • Investment Centers Of America • Investors Capital Corporation • James T. Borello & Company • LPL Financial • M&T Securities Inc. • Merrill Lynch Insurance Group • Morgan Keegan and Company, Inc. • Morgan Stanley Smith Barney • Multi Financial Securities Corporation • National

104

Planning Corporation • Park Avenue Securities, LLC • Primevest Financial Services, Inc. • Raymond James and Associates • Raymond James Financial Group • Royal Alliance Associaties, Inc. • SagePoint Financial, Inc. • Securities America, Inc. • Sigma Financial Corporation • Signator Investors, Inc. • SII Investments Inc. • SunTrust Investments Services, Inc. • The Investment Center, Inc. • Transamerica Financial Advisors • UBS Financial Services, Inc. • US Bancorp Investments Inc. • Valmark Securities Inc. • VSR Financial Services, Inc. • Wells Fargo Advisors • Wells Fargo Wealth Brokerage

During 2012, 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 2012
Morgan Stanley Smith Barney	$2,003,689.04
LPL Financial LLC	$1,924,042.41
Wells Fargo Wealth Brokerage	$1,376,759.89
Wells Fargo Advisors	$1,159,816.33
Transamerica Financial Advisors	$893,174.56
Merrill Lynch Insurance Group	$800,000.00
UBS Financial Services	$608,490.41
National Planning Corporation	$450,837.53
Raymond James Financial Group	$416,210.11
CCO Investment Services Corp.	$410,513.53

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

Performance

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

Independent Registered Public Accounting Firm

Other Information

Financial Statements

Appendix A - Condensed Financial Information

105

APPENDIX

PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS

Please Note: The Company reserves the right to change investment choices made by purchasers of the Living Benefits Rider and Retirement Income Choice^SM 1.2 Rider (if the Open Allocation option is elected) as we deem necessary to support the guarantees under these riders.

SUBACCOUNT(1)	PORTFOLIO	ADVISOR/SUBADVISOR
TRANSAMERICA SERIES TRUST
TA AEGON Money Market - Service Class(2)	Transamerica AEGON Money Market VP – Service Class	AEGON USA Investment Management, LLC
Investment Objective: Maximum current income from money market securities consistent with liquidity and preservation of principal.
TA AEGON Tactical Vanguard ETF - Balanced - Service Class	Transamerica AEGON Active Asset Allocation - Moderate VP - Service Class	AEGON USA Investment Management, LLC
Investment Objective: Capital appreciation and current income.
TA AEGON Tactical Vanguard ETF - Conservative - Service Class	Transamerica AEGON Active Asset Allocation - Conservative VP - Service Class	AEGON USA Investment Management, LLC
Investment Objective: Current income and preservation of capital.
TA AEGON Tactical Vanguard ETF - Growth - Service Class	Transamerica AEGON Active Asset Allocation - Moderate Growth VP - Service Class	AEGON USA Investment Management, LLC
Investment Objective: Capital appreciation with current income as secondary objective.
TA AEGON U.S. Government Securities - Service Class	Transamerica AEGON U.S. Government Securities VP – Service Class	AEGON USA Investment Management, LLC
Investment Objective: High level of total return as is consistent with prudent investment strategies.
TA Legg Mason Dynamic Allocation - Balanced - Service Class	Transamerica Legg Mason Dynamic Allocation - Balanced VP - Service Class	Legg Mason Global Asset Allocation, LLC
Investment Objective: Seeks capital appreciation and income.
TA Legg Mason Dynamic Allocation - Growth - Service Class	Transamerica Legg Mason Dynamic Allocation - Growth VP - Service Class	Legg Mason Global Asset Allocation, LLC
Investment Objective: Seeks capital appreciation and income.
TA PIMCO Total Return - Service Class	Transamerica PIMCO Total Return VP – Service Class	Pacific Investment Management Company LLC
Investment Objective: Maximum total return consistent with preservation of capital and prudent investment management.
TA Vanguard ETF - Aggressive Growth - Service Class(3)	Transamerica Vanguard ETF Portfolio - Aggressive Growth VP - Service Class(3)	AEGON USA Investment Management, LLC
Investment Objective: Long-term capital appreciation.
TA Vanguard ETF - Balanced - Service Class(4)	Transamerica Vanguard ETF Portfolio - Balanced VP - Service Class(4)	AEGON USA Investment Management, LLC
Investment Objective: Balance capital appreciation and income.
TA Vanguard ETF - Conservative - Service Class(5)	Transamerica Vanguard ETF Portfolio - Conservative VP - Service Class(5)	AEGON USA Investment Management, LLC
Investment Objective: Current income and preservation of capital.
TA Vanguard ETF - Growth - Service Class(6)(7)	Transamerica Vanguard ETF Portfolio - Growth VP - Service Class(6)(7)	AEGON USA Investment Management, LLC
Investment Objective: Capital appreciation as a primary objective and income as a secondary objective.

⁽¹⁾ Some subaccounts may be available for certain policies and may not be available for all policies. You should work with your registered representative to decide which subaccount(s) may be appropriate for you based on a thorough analysis of your particular insurance needs, financial objective, investment goals, time horizons, and risk tolerance.

⁽²⁾ There can be no assurance that 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 TA AEGON Money Market - Service Class subaccount may become extremely low and possibly negative.

⁽³⁾ Portfolio name formerly known as Transamerica Index 100 VP and subaccount name formerly known as TA Vanguard ETF Index - Aggressive Growth.

106

PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS — (Continued)

⁽⁴⁾ Portfolio name formerly known as Transamerica Index 50 VP and subaccount name formerly known as TA Vanguard ETF Index - Balanced.

⁽⁵⁾ Portfolio name formerly known as Transamerica Index 35 VP and subaccount name formerly known as TA Vanguard ETF Index - Conservative.

⁽⁶⁾ Portfolio name formerly known as Transamerica Index 75 VP and subaccount name formerly known as TA Vanguard ETF Index - Growth.

⁽⁷⁾ Effective on or about May 1, 2013, Transamerica Efficient Markets VP merged into Transamerica Vanguard ETF Portfolio -Growth VP.

107

APPENDIX

DESIGNATED INVESTMENT OPTIONS

The table below identifies the Designated Investment Options available for use with the Guaranteed Minimum Death Benefits and our Guaranteed Lifetime Withdrawal Benefits.

	Double Enhanced Death Benefit(1)	Income LinkSM Rider	Retirement Income MaxSM Rider	Retirement Income MaxSM Rider	Retirement  Income ChoiceSM 1.6 Rider Designated Allocation Groups
Funds			Before 12/12/11	After 12/12/11	A	B	C
TA AEGON Money Market - Service Class	ü	ü	ü	ü			ü
TA AEGON Tactical Vanguard ETF - Balanced - Service Class			ü	ü		ü
TA AEGON Tactical Vanguard ETF - Conservative - Service Class	ü	ü	ü	ü			ü
TA AEGON Tactical Vanguard ETF - Growth - Service Class					ü
TA AEGON U.S. Government Securities - Service Class	ü	ü	ü	ü			ü
TA Legg Mason Dynamic Allocation - Balanced - Service Class			ü	ü		ü
TA Legg Mason Dynamic Allocation - Growth - Service Class					ü
TA PIMCO Total Return - Service Class	ü	ü	ü	ü			ü
TA Vanguard ETF - Balanced - Service Class	ü		ü	ü		ü
TA Vanguard ETF - Conservative - Service Class	ü	ü	ü	ü			ü
TA Vanguard ETF - Growth - Service Class	ü				ü
Fixed Account	ü	ü	ü	ü			ü

⁽¹⁾ The Double Enhanced Death Benefit is no longer available on new policies.

108

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, 2012. 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

	Year	Separate Account Expense 2.00%
Subaccount		Beginning AUV	Ending AUV	# Units
TA Efficient Markets - Service Class(1)	2012	$1.050629	$1.155634	761.560
Subaccount Inception Date November 19, 2009	2011	$1.095602	$1.050629	764.197
	2010	$0.994421	$1.095602	1,728.302
	2009	$0.989359	$0.994421	0.000
TA PIMCO Total Return - Service Class	2012	$1.195264	$1.257509	113,042.196
Subaccount Inception Date August 18, 2008	2011	$1.150660	$1.195264	146,366.276
	2010	$1.097545	$1.150660	138,794.744
	2009	$0.967159	$1.097545	141,107.461
	2008	$1.000000	$0.967159	0.000
TA AEGON Money Market - Service Class	2012	$0.941465	$0.922950	3,618.336
Subaccount Inception Date August 18, 2008	2011	$0.960194	$0.941465	3,630.698
	2010	$0.979350	$0.960194	10,629.094
	2009	$0.998815	$0.979350	27,426.340
	2008	$1.000000	$0.998815	142,388.676
TA AEGON U.S. Government Securities - Service Class	2012	$1.140923	$1.172848	0.000
Subaccount Inception Date August 18, 2008	2011	$1.084647	$1.140923	0.000
	2010	$1.061512	$1.084647	0.000
	2009	$1.039124	$1.061512	0.000
	2008	$1.000000	$1.039124	0.000
PAM TA AEGON U.S. Government Securities - Service Class	2012	$1.140923	$1.172848	0.000
Subaccount Inception Date August 18, 2008	2011	$1.084647	$1.140923	0.000
	2010	$1.061512	$1.084647	0.000
	2009	$1.039124	$1.061512	0.000
	2008	$1.000000	$1.039124	0.000
TA Vanguard ETF - Conservative - Service Class(2)	2012	$1.082666	$1.131562	0.000
Subaccount Inception Date November 19, 2009	2011	$1.070290	$1.082666	0.000
	2010	$0.997673	$1.070290	0.000
	2009	$0.999946	$0.997673	0.000
TA Vanguard ETF - Balanced - Service Class(3)	2012	$1.071340	$1.138414	205,254.681
Subaccount Inception Date August 18, 2008	2011	$1.076920	$1.071340	400,105.185
	2010	$0.992347	$1.076920	410,580.002
	2009	$0.868604	$0.992347	431,855.751
	2008	$1.000000	$0.868604	0.000

109

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year	Separate Account Expense 2.00%
Subaccount		Beginning AUV	Ending AUV	# Units
TA Vanguard ETF - Growth - Service Class(1)(4)	2012	$1.020119	$1.115566	784,683.600
Subaccount Inception Date August 18, 2008	2011	$1.052413	$1.020119	909,550.025
	2010	$0.949921	$1.052413	848,690.284
	2009	$0.786588	$0.949921	888,839.815
	2008	$1.000000	$0.786588	0.000
		Separate Account Expense 0.85%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA Efficient Markets - Service Class(1)	2012	$1.076118	$1.197235	8,541,708.389
Subaccount Inception Date November 19, 2009	2011	$1.109561	$1.076118	7,306,957.045
	2010	$0.995748	$1.109561	2,276,944.215
	2009	$0.989390	$0.995748	363.941
TA PIMCO Total Return - Service Class	2012	$1.241773	$1.321428	14,535,530.529
Subaccount Inception Date August 18, 2008	2011	$1.181992	$1.241773	12,594,077.711
	2010	$1.114726	$1.181992	6,587,087.169
	2009	$0.971217	$1.114726	3,747,234.205
	2008	$1.000000	$0.971217	324,007.630
TA AEGON Money Market - Service Class	2012	$0.977994	$0.969804	2,906,115.443
Subaccount Inception Date August 18, 2008	2011	$0.986311	$0.977994	3,538,887.537
	2010	$0.994679	$0.986311	2,078,681.387
	2009	$1.003016	$0.994679	1,565,832.498
	2008	$1.000000	$1.003016	142,382.709
TA AEGON U.S. Government Securities - Service Class	2012	$1.185307	$1.232441	4,045,,598.256
Subaccount Inception Date August 18, 2008	2011	$1.114186	$1.185307	7,760,356.675
	2010	$1.078119	$1.114186	2,679,840.571
	2009	$1.043481	$1.078119	1,726,307.936
	2008	$1.000000	$1.043481	338,635.161
PAM TA AEGON U.S. Government Securities - Service Class	2012	$1.185307	$1.232441	3,881.260
Subaccount Inception Date August 18, 2008	2011	$1.114186	$1.185307	32,552.052
	2010	$1.078119	$1.114186	0.000
	2009	$1.043481	$1.078119	0.000
	2008	$1.000000	$1.043481	0.000
TA Vanguard ETF - Conservative - Service Class(2)	2012	$1.108949	$1.172318	19,755,002.415
Subaccount Inception Date November 19, 2009	2011	$1.083942	$1.108949	16,679,820.217
	2010	$0.999007	$1.083942	5,177,118.531
	2009	$0.999977	$0.999007	20,689.598
TA Vanguard ETF - Balanced - Service Class(3)	2012	$1.113005	$1.196245	70,531,021.154
Subaccount Inception Date August 18, 2008	2011	$1.106221	$1.113005	54,287,152.158
	2010	$1.007876	$1.106221	24,245,285.615
	2009	$0.872256	$1.007876	13,314,321.928
	2008	$1.000000	$0.872256	1,871,105.999
TA Vanguard ETF - Growth - Service Class(1)(4)	2012	$1.059832	$1.172282	82,831,349.672
Subaccount Inception Date August 18, 2008	2011	$1.081076	$1.059832	67,691,751.249
	2010	$0.964804	$1.081076	56,320,200.031
	2009	$0.789908	$0.964804	41,724,255.963
	2008	$1.000000	$0.789908	10,502,904.586
TA Vanguard ETF - Aggressive Growth - Service Class(5)	2012	$1.107787	$1.280375	7,551,923.335
Subaccount Inception Date November 19, 2009	2011	$1.162759	$1.107787	5,115,418.909
	2010	$1.024979	$1.162759	2,569,367.527
	2009	$0.999977	$1.024979	0.000

110

CONDENSED FINANCIAL INFORMATION — (Continued)

	Year	Separate Account Expense 0.85%
Subaccount		Beginning AUV	Ending AUV	# Units
TA ProFunds UltraBear Fund - Service Class OAM	2012	$0.325554	$0.227789	2,016,550.262
Subaccount Inception Date May 1, 2009	2011	$0.410146	$0.325554	2,829,740.036
	2010	$0.564776	$0.410146	19,715.541
	2009	$1.000000	$0.564776	0.000
TA AEGON Tactical Vanguard ETF - Balanced - Service Class	2012	$0.964568	$1.035744	9,544,041.576
Subaccount Inception Date May 2, 2011	2011	$1.000000	$0.964568	1,069,012.852
TA AEGON Tactical Vanguard ETF - Conservative - Service Class	2012	$0.984452	$1.042303	4,521,404.709
Subaccount Inception Date May 2, 2011	2011	$1.000000	$0.984452	1,873,196.632
TA AEGON Tactical Vanguard ETF - Growth - Service Class	2012	$0.923802	$1.016311	5,790,317.924
Subaccount Inception Date May 2, 2011	2011	$1.000000	$0.923802	1,332,861.647
TA Legg Mason Dynamic Allocation - Balanced - Service Class
Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.013254	1,653,647.607
TA Legg Mason Dynamic Allocation - Growth - Service Class
Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.008284	422,292.992

⁽¹⁾  Effective on or about May 1, 2013, Transamerica Efficient Markets VP merged into Transamerica Vanguard ETF Portfolio - Growth VP.

⁽²⁾  Portfolio name formerly known as Transamerica Index 35 VP and subaccount name formerly known as TA Vanguard ETF Index - Conservative.

⁽³⁾  Portfolio name formerly known as Transamerica Index 50 VP and subaccount name formerly known as TA Vanguard ETF Index - Balanced.

⁽⁴⁾  Portfolio name formerly known as Transamerica Index 75 VP and subaccount name formerly known as TA Vanguard ETF Index - Growth.

⁽⁵⁾  Portfolio name formerly known as Transamerica Index 100 VP and subaccount name formerly known as TA Vanguard ETF Index - Aggressive Growth.

111

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 adjusted 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
M	=	Number of months remaining in the current option period, rounded up to the next higher whole number of months.
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% (the amount of the “adjustment” will be based on an actuarial risk based analysis considering a number of financial criteria including the prevailing interest rate environment).
*	=	multiplication

The following examples are for illustrative purposes only and are calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal. In the following examples ^ denotes exponentiation.

112

Excess Interest Adjustment Examples — (Continued)

Example 1 (Full Surrender, rates increase by 3%):

Single premium:	$50,000.00
Guarantee period:	5 Years
Guarantee rate:	5.50% per annum
Surrender:	Middle of policy year 2
Policy value at middle of policy year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative Earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of excess interest adjustment	= 4,181.21
Amount subject to excess interest adjustment	= 54,181.21 – 4,181.21 = 50,000.00
Excess interest adjustment floor	= 50,000.00 * (1.015) ^ 1.5 = 51,129.21
Excess interest adjustment
G = .055
C = .085
M = 42
Excess interest adjustment	= S* (G-C)* (M/12)
	= 50,000.00 * (.055-.085) * (42/12)
	= -5,250.00, but excess interest adjustment cannot cause the adjusted policy value to fall below the excess interest adjustment floor, so the adjustment is limited to 51,129.21 - 54,181.21 = -3,052.00
Adjusted policy value	= policy value + excess interest adjustment
	= 54,181.21 + (-3,052.00) = 51,129.21
Upon full surrender of the policy, the net surrender value (adjusted policy value less any surrender charge) will never be less than that required by the non-forfeiture laws of your state.

* 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.

113

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 2
Policy value at middle of policy year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative Earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of excess interest adjustment	= 4,181.21
Amount subject to excess interest adjustment	= 54,181.21 – 4,181.21 = 50,000.00
Excess interest adjustment floor	= 50,000.00 * (1.015) ^ 1.5 = 51,129.21
Excess interest adjustment
G = .055
C = .045
M = 42
Excess interest adjustment	= S* (G-C)* (M/12)
	= 50,000.00 * (.055-.045) * (42/12) = 1,750.00
Adjusted policy value	= 54,181.21 + 1,750.00 = 55,931.21
Upon full surrender of the policy, the net surrender value will never by less than that required by the non-forfeiture laws of your state. For the purpose of these illustrations no surrender charges are assumed.

* 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 + SC

R	=	the requested partial surrender;
E	=	the excess interest adjustment; and
SC	=	the surrender charges on (EPW - E); where
EPW	=	the excess partial withdrawal amount.

114

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 2
Policy value at middle of policy year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative Earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of excess interest adjustment	= 4,181.21
Excess interest adjustment
S = 20,000 – 4,181.21 = 15,818.79
G = .055
C = .065
M = 42
Excess Interest Adjustment	= 15,818.79 * (.055 - .065) * (42/12) = -553.66
Remaining policy value at middle of policy	= 54,181.21 - (R – E + surrender charge)
year 2	= 54,181.21 - (20,000.00 - (-553.66) + 0.00) = 33,627.55

* 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 2
Policy value at middle of policy year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative Earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of excess interest adjustment	= 4,181.21
Excess interest adjustment
S = 20,000 – 4,181.21 = 15,818.79
G = .055
C = .045
M = 42
Excess Interest Adjustment	= 15,818.79 * (.055 - .045)* (42/12) = 553.66
Remaining policy value at middle of policy	= 54,181.21 - (R – E + surrender charge)
year 2	= 54,181.21 - (20,000.00 – 553.66 + 0.00) = 34,734.87

* 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.

115

APPENDIX

DEATH BENEFIT

Adjusted Withdrawals. If you make a partial surrender (withdrawal), then your guaranteed minimum death benefit is reduced by an amount called the adjusted withdrawal. The amount of the reduction depends on the relationship between your death proceeds and policy value. The adjusted withdrawal is equal to the gross withdrawal multiplied by the death proceeds immediately prior to the withdrawal divided by the policy value immediately prior to the withdrawal. The formula is AW = GW x (DP/PV) where:

AW = Adjusted Withdrawal

GW= Gross Withdrawal

DP = Death Proceeds prior to the withdrawal = greatest of (PV, CV, or GMDB)

PV = Policy Value prior to the withdrawal

GMDB = Guaranteed minimum Death Benefit prior to the withdrawal

CV = Cash Value prior to the withdrawal

The following examples describe the effect of a surrender on the guaranteed minimum death benefit and policy value.

Example 1: Death Proceeds Greater than Policy Value

Assumptions:

GMDB = $75,000

PV = $50,000

DP = $75,000

GW = $15,494

AW = $15,494 x ($75,000/$50,000) = $23,241

Summary:
Reduction in guaranteed minimum death benefit	= $	23,241
Reduction in policy value	= $	15,494
New Guaranteed Minimum Death Benefit	= $	51,759
New Policy Value (after withdrawal)	= $	34,506

The guaranteed minimum death benefit is reduced more than the policy value because the guaranteed minimum death benefit was greater than the policy value immediately prior to the withdrawal.

Example 2: Death Proceeds Equal to Policy Value

Assumptions:

GMDB = $50,000

PV = $75,000

DP = $75,000

GW = $15,494

AW = $15,494 x ($75,000/$75,000) = $15,494

116

Death Benefit — (Continued)

Summary:
Reduction in guaranteed minimum death benefit	= $	15,494
Reduction in policy value	= $	15,494
New Guaranteed Minimum Death Benefit	= $	34,506
New Policy Value (after withdrawal)	= $	59,506

The guaranteed minimum death benefit and policy value are reduced by the same amount because the policy value was greater than the guaranteed minimum death benefit immediately prior to the withdrawal.

These examples are for illustrative purposes only. The purpose of these illustrations is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.

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. The difference between the two “Policy Value” columns is the fee for the guaranteed minimum death benefit.

End of Year	Net Rate of Return for Fund*	Policy Value (No GMDB Elected)	Policy Value (Return of Premium GMDB Elected)	Return of Premium GMDB	Policy Value (Annual Step-up GMDB Elected)	Annual Step-Up GMDB
Issue	N/A	$100,000	$100,000	$100,000	$100,000	$100,000
1	-4%	$95,550	$95,400	$100,000	$95,200	$100,000
2	18%	$112,319	$112,000	$100,000	$111,574	$111,574
3	15%	$128,661	$128,128	$100,000	$127,418	$127,418
4	-7%	$119,076	$118,390	$100,000	$117,479	$127,418
5	2%	$120,922	$120,047	$100,000	$118,889	$127,418
6	10%	$132,470	$131,332	$100,000	$129,827	$129,827
7	14%	$150,420	$148,930	$100,000	$146,964	$146,964
8	-3%	$145,230	$143,569	$100,000	$141,379	$146,964
9	17%	$169,266	$167,114	$100,000	$164,283	$164,283
10	6%	$178,660	$176,138	$100,000	$172,826	$172,826

* 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.

117

APPENDIX

ADDITIONAL DEATH DISTRIBUTION RIDER

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 (assumed) on the date of Death Benefit Calculation:	$200,000
Policy Value on the date of Death Benefit Calculations:	$175,000
Rider Earnings (= Policy Value on date of Death Benefit Calculations – policy value on Rider Date – Premiums since Rider Date + Surrenders since Rider Date that exceeded Rider Earnings = $175,000 - $100,000 - $25,000 + $5,000):	$55,000
Additional Death Benefit Amount (= Additional Death Benefit Factor * Rider Earnings = 40%* $55,000):	$22,000
Total Death Benefit paid (=Base Policy Death Benefit plus Additional Death Benefit Amount):	$222,000
Example 2
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 (assumed) 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

118

APPENDIX

ADDITIONAL DEATH DISTRIBUTION+ RIDER

Assume the Additional Death Distribution+ Rider 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

119

APPENDIX

GUARANTEED LIFETIME WITHDRAWAL BENEFIT COMPARISON TABLE

Important aspects of the Living Benefits Rider, the Income Link^SM Rider, the Retirement Income Max^SM Rider or the Retirement Income Choice^SM 1.6 Rider are summarized in the following chart.

Note: The Living Benefits Rider, the Income Link^SM Rider, the Retirement Income Max^SM Rider or the Retirement Income Choice^SM 1.6 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	Income LinkSM Rider	Retirement Income MaxSM Rider	Retirement Income Choice 1.6SM Rider
Benefit:	Benefit:	Benefit:	Benefit:
•   Provides:	•   Provides	•   Provides:	•   Provides:
(1)Guaranteed Minimum	(1)Guaranteed Lifetime	(1) Guaranteed Lifetime	(1) Guaranteed Lifetime
Accumulation Benefit	Withdrawal Benefit	Withdrawal Benefit	Withdrawal Benefit
(“GMAB”)—Ten years after	(“GLWB”)—i.e., a level of	(“GLWB”)—i.e., a series of	(“GLWB”)—i.e., a level of
you elect the rider	cash withdrawals (and	cash withdrawals (and	cash withdrawals (and
(“guaranteed future value	payments from us, if	payments from us, if	payments from us, if
date”), your policy value will	necessary), which are based	necessary) regardless of the	necessary) regardless of the
equal your guaranteed future	on a withdrawal percentage	performance of the	performance of the
value (calculated as described	that is higher for a defined	designated investment	designated investment
below). After that date, the	period and lower thereafter,	choices that you select – if	choices that you select.
guaranteed future value	regardless of the Designated	you invest in certain
equals zero.	Investment Option that you	designated investment	(2) Growth—On each of the
	select.	choices.	first 10 rider anniversaries,
(2) Guaranteed Minimum			we add an annual growth
Withdrawal Benefit	(2) Automatic Step-Up—We	(2) Growth—On each of the	credit (5% of the withdrawal
(“GMWB”)—a maximum	will automatically step-up	first 10 rider anniversaries,	base immediately before the
annual withdrawal amount	the withdrawal base on each	we add an annual growth	rider anniversary) to the
(calculated as described	rider anniversary. You can	credit (5% of the withdrawal	withdrawal base if no
below) regardless of your	opt out of the automatic	base immediately before the	withdrawals have occurred
policy value; we account for	step-up if the automatic	rider anniversary) to the	during the preceding rider
withdrawals you take under	step-up would result in an	withdrawal base if no	year.
the rider by applying two	increase in the rider fee	withdrawals have occurred
different withdrawal	percentage.	during the preceding rider	(3) Automatic Step-Up—We
guarantees, “principal back,”		year.	will automatically step-up
for withdrawals of up to 7%			the withdrawal base on each
of your total withdrawal		(3) Automatic Step-Up—We	rider anniversary. You can
base, or “for life,” for		will automatically step-up	opt out of the automatic
withdrawals up to 5% of		the withdrawal base on each	step-up if the automatic
your total withdrawal base.		rider anniversary. You can	step-up would result in an
		opt out of the automatic	increase in the rider fee
		step-up if the automatic	percentage.
		step-up would result in an
		increase in the rider fee
		percentage.

120

Guaranteed Lifetime Withdrawal Benefit Comparison Table — (Continued)

Living Benefits Rider	Income LinkSM Rider	Retirement Income MaxSM Rider	Retirement Income Choice 1.6SM Rider
•   Upgrades:			•   Upgrades:
(1) Before the annuitant’s			You may request by sending
86th birthday, you can			us written notice. If you
upgrade the total withdrawal			elect to manually reset, the
base (for GMWB) and the			current rider terminates and
guaranteed future value (for			a new rider is issued (which
GMAB) by sending us			may have a higher rider fee
written notice.			percentage and lower growth
			rate percentage.) If you have
(2) If you upgrade, the			elected the joint life option
current rider terminates and			under the rider, you cannot
a new rider is issued (which			elect a manual reset if the
may have a higher rider fee).			annuitant or the annuitant’s
			spouse is 86 or older (unless
			state law requires a lower
			maximum age).

121

Guaranteed Lifetime Withdrawal Benefit Comparison Table — (Continued)

Living Benefits Rider	Income LinkSM Rider	Retirement Income MaxSM Rider	Retirement Income Choice 1.6SM Rider
	•   Additional Options:	•   Additional Options:	•   Additional Options:
	(1) Joint Life Option—You	(1) Joint Life Option—You	(1) Death Benefit Option—
	may elect to postpone	may elect to postpone	You may add an amount to
	termination of the rider until	termination of the rider until	the death benefit payable
	the later of the death of the	the later of the death of the	under the base policy.
	annuitant or the death of the	annuitant or the death of the
	annuitant’s spouse. The	annuitant’s spouse. The	(2) Joint Life Option—You
	annuitant’s spouse must be	annuitant’s spouse must be	may elect to postpone
	either a joint owner (along	either a joint owner (along	termination of the rider until
	with the annuitant) or the	with the annuitant) or the	the later of the death of the
	sole primary beneficiary	sole primary beneficiary	annuitant or the death of the
	(without a joint owner).	(without a joint owner).	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 EnhancementSM
			Option—If the rider has
			been in effect for at least 12
			months, then you may elect
			to have your withdrawal
			percentage increase to 150%
			of the non-income enhanced
			withdrawal percentage 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.

122

Guaranteed Lifetime Withdrawal Benefit Comparison Table — (Continued)

Living Benefits Rider	Income LinkSM Rider	Retirement Income MaxSM Rider	Retirement Income Choice 1.6SM Rider
Availability:	Availability:	Availability:	Availability:
•   0 - 80 (unless state law	•   At least 55 years old and not	•   Younger than age 86 (unless	•   Younger than age 86 (unless
requires a lower maximum	yet age 81 (unless state law	state law requires a lower	state law requires a lower
issue age	requires a lower maximum	maximum issue age)	maximum issue age)
	issue age)
Current Charge:	Current Charges:	For riders issued on or after	Current Charge:
		December 12, 2011.
(1) 0.90% of total withdrawal base	(1) 0.90% annually (single life and	Current Charges:	(1) for Base Benefit only—0.70%
on each rider anniversary under	joint life) of withdrawal base		to 1.55% annually (single and
the “principal back” withdrawal	deducted on each rider quarter.	(1) 1.25% annually (single life and	joint life) of withdrawal base
guarantee under the rider.		joint life) of withdrawal base	deducted on each rider quarter;
		deducted on each rider quarter.
			(2) with Death Benefit Option—
		For riders issued before	0.40% (single life) or 0.35% (joint
		December 12, 2011.	life) annually of withdrawal base
		Current Charges:	deducted on each rider quarter, in
			addition to the base benefit fee;
		(1) 1.00% annually (single life and
		joint life) of withdrawal base	(3) with Income EnhancementSM
		deducted on each rider quarter.	Option—0.30% (single life) or
			0.50% (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	•   You must allocate 100% of	•   You must allocate 100% of	•   You must allocate 100% of
(“PAM”)—We monitor your	your policy value to one or	your policy value to one or	your policy value to one or
policy value and, as we deem	more investment options	more investment options	more investment options
necessary to support the	that we designate.	that we designate.	that we designate.
guarantees under the rider, may transfer amounts between investment options that we designate and the variable investment choices that you select.

123

Guaranteed Lifetime Withdrawal Benefit Comparison Table — (Continued)

Living Benefits Rider	Income LinkSM Rider	Retirement Income MaxSM Rider		Retirement Income Choice 1.6SM Rider
Withdrawal Option:	Withdrawal Percentages (Single	Withdrawal Percentages (Single		Withdrawal Percentages (Single
	Life):	Life):		Life):
5% For Life - Policyholder can withdraw up to 5% of the 5% For Life total withdrawal base each year starting with the rider anniversary following the annuitant’s 59th birthday until at least the later of the death of the annuitant or the time when the 5% For Life Minimum Remaining Withdrawal Amount has reached zero.	7 yr option - 5% for 7 years and	For riders issued on or after
	4% thereafter	December 12, 2011.		0-58	0.0%
	6 yr option - 6% for 6 years and	0-58	0.0%	59-64	4.0%
	4% thereafter	59-64	4.3%	65-79	5.0%
	5 yr option - 7% for 5 years and	65-79	5.3%	80+	6.0%
	4% thereafter	80+	6.3%
	4 yr option - 8% for 4 years and
	4% thereafter	For riders issued before December
	3 yr option - 9% for 3 years and	12, 2011.
	4% thereafter	0-58	0.0%
	2 year option - 10% for 2 years	59-64	4.5%
	and 4% thereafter	65-74	5.5%
		75+	6.5%
Withdrawal Option:	Withdrawal Percentages (Joint	Withdrawal Percentages (Joint		Withdrawal Percentages (Joint
	Life):	Life):		Life):
7% Principal Back - Policyholder can withdraw up to 7% of the 7% Principal Back total withdrawal base per year until at least the time at which the 7% Principal Back minimum remaining withdrawal amount has reached zero.	7 yr option - 4.5% for 7 years and	For riders issued on or after
	3.5% thereafter	December 12, 2011.		0-58	0.0%
	6 yr option - 5.5% for 6 years and	0-58	0.0%	59-64	3.5%
	3.5% thereafter	59-64	3.8%	65-79	4.5%
	5 yr option - 6.5% for 5 years and	65-79	4.8%	80+	5.5%
	3.5% thereafter	80+	5.8%
	4 yr option - 7.5% for 4 years and
	3.5% thereafter	For riders issued before December
	3 yr option - 8.5% for 3 years and	12, 2011.
	3.5% thereafter	0-58	0.0%
	2 year option - 9.5% for 2 years	59-64	4.1%
	and 3.5% thereafter	65-74	5.1%
		75+	6.1%

124

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.

125

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:

126

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

127

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

128

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.

129

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.

130

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.

131

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 (subject to the previously disclosed thresholds). The formula is:

Percent of Policy Value required in PAM Subaccount (or X) = e^{-Dividend*Time *}(1- NormDist(d1))

where:

e = Base of the Natural Logarithm

NormDist = Cumulative Standard Normal Distribution

d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

In order to calculate the percent of policy value required in the PAM Subaccount, we must first calculate d1:

d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]

Where:

ln = Natural Logarithm Function

G = Guarantee Ratio

R = Rate

F=Fees

V = Volatility

T = Time

After calculating d1, the percent of policy value required in the PAM Subaccount can be calculated. Once calculated, appropriate transfers into or out of the PAM Subaccount 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 PAM Subaccount.

The GUARANTEE RATIO is the policy value divided by 7% “Principal Back” Minimum Remaining Withdrawal Amount.

132

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]

133

PAM METHOD TRANSFERS — (Continued)

d1=.658832

Using the value we just calculated for d1 we can now calculate the percent of policy value required in the PAM Subaccount.

Percent of Policy Value in PAM Subaccount (or X) = e^{-Dividend*Time *}(1-NormDist(d1))

X= (2.718282 ^ -.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%

134

PAM METHOD TRANSFERS — (Continued)

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.

135

APPENDIX

GUARANTEED LIFETIME WITHDRAWAL BENEFIT

ADJUSTED PARTIAL SURRENDERS - INCOME LINK^SM 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^SM Rider Systematic Withdrawals (“ILSW”)

Withdrawal Base. Income Link^SM rider systematic withdrawals (and certain minimum required distributions) will not reduce the withdrawal base. Non-Income Link^SM 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^SM 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^SM 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^SM rider systematic withdrawal occurs during the second Income Link^SM rider withdrawal year (which means the withdrawal percentage is 6%).

Result. For the guaranteed lifetime withdrawal benefit, because there was a non-Income Link^SM rider systematic withdrawal, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount and Income Link^SM 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^SM rider systematic withdrawal or the pro rata amount, if greater.

136

Guaranteed Lifetime Withdrawal Benefit

Adjusted Partial Surrenders - Income Link^SM Rider — (Continued)

Step Two. Calculate how much the withdrawal base is affected by the non-Income Link^SM 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^SM 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^SM rider systematic withdrawal) we have to calculate a new (remaining) rider withdrawal amount. This calculation assumes no more non-Income Link^SM rider systematic withdrawal activity prior to the next Income Link^SM rider withdrawal year.

Question: What is the new (remaining) rider withdrawal amount for the remainder of the Income Link^SM rider withdrawal year?

$3,000 (the remaining rider withdrawal amount) - ($3,000*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^SM rider systematic withdrawal amount:

Because the withdrawal base was adjusted (due to the non-Income Link^SM rider systematic withdrawal) we have to calculate a new Income Link^SM rider systematic withdrawal amount. This calculation assumes no more non-Income Link^SM rider systematic withdrawal activity prior to the next Income Link^SM rider withdrawal year.

Question: What is the new Income Link^SM rider systematic withdrawal amount?

$500 (the old Income Link^SM rider systematic withdrawal amount) - ($500*11.11%) = $444

Result. Going forward (until the seventh Income Link^SM rider withdrawal year), the Income Link^SM rider systematic withdrawal amount (assuming there are no future automatic step-ups) is $444.

137

APPENDIX

ADJUSTED PARTIAL SURRENDERS - GUARANTEED LIFETIME WITHDRAWAL

BENEFIT RIDERS

When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:

1. Withdrawal Base (“WB”) (also referred to as Total Withdrawal Base (“TWB”) for some riders);

2. Rider Withdrawal Amount (“RWA”) (also referred to as Maximum Annual Withdrawal Amount (“MAWA”) for some riders); and

3. Rider Death Benefit (“RDB”) (also referred to as Minimum Remaining Withdrawal Amount (“MRWA”) for some riders (if applicable)).

Withdrawal Base. Gross 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.

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 rider withdrawal amount remaining prior to the withdrawal);

B is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and

C is the rider death benefit after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

The following demonstrates, on a purely hypothetical basis, the effects of partial withdrawals under a guaranteed lifetime withdrawal benefit. The withdrawal percentages shown may not be available on all riders. Certain features (growth and rider death benefits) may not be available on all riders. For information regarding a specific rider, please refer to that rider section in this prospectus.

Example 1 (Base):

138

Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders — (Continued)

Assumptions:

WB = $100,000

Withdrawal Percentage = 5%

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

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

Withdrawal Percentage = 5%

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)

GPWD = $7,000

EWD = $2,000 ($7,000 - $5,000)

PV = $90,000

NOTE. For the guaranteed lifetime withdrawal benefit, because there was an excess withdrawal amount, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $5,000, the withdrawal base would remain at $100,000 and the rider withdrawal amount would be $5,000. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5% is based on).

New withdrawal base:

Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount, if greater.

Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.

1. The formula is (EWD / (PV - 5% withdrawal)) * WB before any adjustments

2. ($2,000 / ($90,000 - $5,000)) * $100,000 = $2,352.94

139

Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders — (Continued)

Step Three. Which is larger, the actual $2,000 excess withdrawal or the $2,352.94 pro rata amount? $2,352.94 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based? $100,000 - $2,352.94 = $97,647.06

Result. The new withdrawal base is $97,647.06

New rider withdrawal amount:

Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% guarantee that will be available starting on the next calendar anniversary. This calculation assumes no more activity prior to the next calendar anniversary.

Question: What is the new rider withdrawal amount?

$97,647.06 (the adjusted withdrawal base) * 5% = $4,882.35

Result. Going forward, the maximum you can take out in a year is $4,882.35 without causing an excess withdrawal for the guarantee and further reduction of the withdrawal base (assuming there are no future automatic step-ups).

Example 3 (Base demonstrating growth):

Assumptions:

WB = $100,000

Withdrawal Percentage = 5%

WB in 10 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 10 = $162,889

RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)

Please Note: Withdrawals under these riders can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken, and the growth stops on the 10th rider anniversary.

GPWD = $8,144

EWD=None

PV = $90,000 in 10 years

Question: Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $8,144 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $8,144, the withdrawal base does not change.

140

Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders — (Continued)

Example 4 (Base demonstrating WB growth with Additional Death Payment Option):

Assumptions:

Withdrawal Percentage = 5%

WB at rider issue = $100,000

WB in 10 years (assuming an annual growth rate percentage of 5%) = $100,000 * (1 + .05) ^ 10 = $162,889

RDB (optional additional death benefit for additional cost) = $100,000

RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)

Please Note: Withdrawals under these riders can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken, and the growth stops on the 10th rider anniversary.

GPWD = $8,144

EWD = None

PV = $90,000 in 10 years

Step One. Is any portion of the withdrawal greater than the rider withdrawal amount?

No. There is no excess withdrawal under the guarantee if no more than $8,144 is withdrawn.

Step Two. What is the rider death benefit after the withdrawal has been taken?

1. Total to deduct from the rider death benefit is $8,144 (there is no excess to deduct)

2. $100,000 - $8,144 = $91,856.

Result. In this example, because no portion of the withdrawal was in excess of $8,144, the total withdrawal base does not change and the rider death benefit reduces to $91,856.

Example 5 (Base with WB growth with Additional Death Payment Option illustrating excess withdrawal):

Assumptions:

Withdrawal Percentage = 5%.

WB at rider issue = $100,000

Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.

WB in 10 years (assuming an annual growth rate percentage of 5%) = $100,000 * (1 + .05) ^ 10 = $162,889.

RDB (optional additional death benefit for additional cost) = $100,000

RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)

Please Note: Withdrawals under these riders can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken and the growth stops on the 10th rider anniversary.

GPWD = $10,000

EWD = $1,856 ($10,000 - $8,144)

141

Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders — (Continued)

PV = $90,000 in 10 years

Step One. Is any portion of the total withdrawal greater than the rider withdrawal amount?

Yes. $10,000 - $8,144 = $1,856 (the excess withdrawal amount)

Step Two. Calculate how much of the rider death benefit is affected by the excess withdrawal.

1. Formula for pro rata amount is: (EWD / (PV - 5% withdrawal)) * (RDB - 5% withdrawal)

2. ($1,856 / ($90,000 - $8,144)) * ($100,000 - $8,144) = $2,082.74

Step Three. Which is larger, the actual $1,856 excess withdrawal amount or the $2,082.74 pro rata amount?

$2,082.74 pro rata amount.

Step Four. What is the rider death benefit after the withdrawal has been taken?

1. Total to deduct from the rider death benefit is $8,144 (RWA) + $2,082.74 (pro rata excess) = $10,226.74

2. $100,000 - $10,226.74 = $89,773.26.

Result. The rider benefit is $89,773.26.

Note: Because there was an excess withdrawal amount in this example, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $8,144, the withdrawal base would remain at $162,889 and the rider withdrawal amount would be $8,144. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5% is based on).

The Retirement Income Choice^SM, Retirement Income Choice^SM with Double Withdrawal Base Benefit, Retirement Income Choice^SM 1.4, Retirement Income Choice^SM 1.2, Retirement Income Max^SM, and Retirement Income Choice^SM 1.6 riders and any additional options they offer 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^SM, Retirement Income Choice^SM with Double Withdrawal Base Benefit, Retirement Income Choice^SM 1.4, Retirement Income Choice^SM 1.2, Retirement Income Max^SM, and Retirement Income Choice^SM 1.6 riders.

142

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 MonthiversarySM Value	Withdrawal Base	Rider Withdrawal Amount
	$100,000	$	$	$	$	$100,000	$100,000	$6,300
1	$102,000	$	$	$	$	$102,000	$100,000	$6,300
1	$105,060	$	$	$	$	$105,060	$100,000	$6,300
1	$107,161	$	$	$	$	$107,161	$100,000	$6,300
1	$110,376	$	$	$	$	$110,376	$100,000	$6,300
1	$112,584	$	$	$	$	$112,584	$100,000	$6,300
1	$115,961	$	$	$	$	$115,961	$100,000	$6,300
1	$118,280	$	$	$	$	$118,280	$100,000	$6,300
1	$121,829	$	$	$	$	$121,829	$100,000	$6,300
1	$124,265	$	$	$	$	$124,265	$100,000	$6,300
1	$120,537	$	$	$	$	$124,265	$100,000	$6,300
1	$115,716	$	$	$	$	$124,265	$100,000	$6,300
1	$109,930	$	$	$	$105,000	$124,265	$124,2651	$7,829
2	$112,129	$	$	$	$	$112,129	$124,265	$7,829
2	$115,492	$	$	$	$	$115,492	$124,265	$7,829
2	$117,802	$	$	$	$	$117,802	$124,265	$7,829
2	$121,336	$	$	$	$	$121,336	$124,265	$7,829
2	$124,976	$	$	$	$	$124,976	$124,265	$7,829
2	$177,476	$50,000	$	$	$	$177,476	$174,265	$10,979
2	$175,701	$	$	$	$	$177,476	$174,265	$10,979
2	$172,187	$	$	$	$	$177,476	$174,265	$10,979
2	$167,022	$	$	$	$	$177,476	$174,265	$10,979
2	$163,681	$	$	$	$	$177,476	$174,265	$10,979
2	$166,955	$	$	$	$	$177,476	$174,265	$10,979
2	$170,294	$	$	$	$182,979	$177,476	$182,9792	$11,528
3	$166,888	$	$	$	$	$166,888	$182,979	$11,528
3	$171,895	$	$	$	$	$171,895	$182,979	$11,528
3	$173,614	$	$	$	$	$173,614	$182,979	$11,528
3	$178,822	$	$	$	$	$178,822	$182,979	$11,528
3	$175,246	$	$	$	$	$178,822	$182,979	$11,528
3	$151,741	$	$20,000	$9,676	$	$	$173,303	$
3	$154,775	$	$	$	$	$	$173,303	$
3	$159,419	$	$	$	$	$	$173,303	$

143

Rider Year	Hypothetical Policy Value	Subsequent Premium Payment	Withdrawal	Excess WB Adjustment	Growth Amount	High MonthiversarySM Value	Withdrawal Base	Rider Withdrawal Amount
3	$161,013	$	$	$	$	$	$173,303	$
3	$165,843	$	$	$	$	$	$173,303	$
3	$174,135	$	$	$	$	$	$173,303	$
3	$181,101	$	$	$	$	$	$181,1011	$11,409

⁽¹⁾  Automatic Step Up Applied

⁽²⁾  Growth Applied

144

APPENDIX

RIDER GRID VARIATIONS

The information below is a summary of riders previously available for purchase but are no longer available. This appendix describes the material features of the National versions of these riders. Please refer to your personal rider pages and any supplemental mailings for your specific coverage and features regarding these riders. Listed below are the abbreviations that will be used in the following grid for your reference.

Abbreviation	Definition	Abbreviation	Definition
ADB	Additional Death Benefit	ADD	Additional Death Distribution
ADD+	Additional Death Distribution Plus	DB	Death Benefit
DCA	Dollar Cost Averaging	FIP	Family Income Protector
GFV	Guaranteed Future Value	GMAB	Guaranteed Minimum Accumulation Benefit
GMDB	Guaranteed Minimum Death Benefit	GMIB	Guaranteed Minimum Income Benefit
GMLB	Guaranteed Minimum Living Benefit	GMWB	Guaranteed Minimum Withdrawal Benefit
GPO	Guaranteed Period Option	GPS	Guaranteed Principal SolutionSM
IE	Income EnhancementSM	ISFL	Income SelectSM For Life
MAP	Managed Annuity Program	MAV	Minimum Annuitization Value
MAWA	Maximum Annual Withdrawal Amount	MIB	Minimum Income Base
MRWA	Minimum Remaining Withdrawal Amount	N/A	Not Applicable
OAM	Open Allocation Method	PAM	Portfolio Allocation Method
RDB	Rider Death Benefit	RIC	Retirement Income ChoiceSM
RMD	Required Minimum Distribution	RWA	Rider Withdrawal Amount
TWB	Total Withdrawal Base	WB	Withdrawal Base
WD	Withdrawal

Rider Name	Retirement Income ChoiceSM3	Retirement Income ChoiceSM with Double Withdrawal Base Benefit3
Rider Form Number1	RGMB 27 0108 (w/o IE) RGMB 29 0108 (with IE)	RGMB 31 0708 (w/o IE) RGMB 33 0708 (with IE)
Purpose of Rider	This is a GLWB rider that guarantees withdrawals for the annuitant’s2 lifetime, regardless of policy value. •  The policyholder can withdraw the RWA each year until the death of the annuitant.2 •  This benefit is intended to provide a level of payments regardless of the performance of the designated variable investment options you select.	This is a GLWB rider that guarantees withdrawals for the annuitant’s2 lifetime, regardless of policy value. •  The policyholder can withdraw the RWA each rider year until the death of the annuitant.2 •  This benefit is intended to provide a level of payments regardless of the performance of the designated variable investment options you select.

145

Rider Name	Retirement Income ChoiceSM3		Retirement Income ChoiceSM with Double Withdrawal Base Benefit3
Rider Form Number1	RGMB 27 0108 (w/o IE) RGMB 29 0108 (with IE)		RGMB 31 0708 (w/o IE) RGMB 33 0708 (with IE)
Availability	•   Issue age 0-85, but not yet 86 years old (unless state law requires a lower maximum issue age). •   Single Annuitant ONLY. Annuitant must be an Owner (unless owner is a non-natural person) •   Maximum of 2 living Joint Owners (with one being the Annuitant) •   Cannot be added to a policy with other active GMLB or GMIB riders. •   Cannot be added on policies with Growth or Double Enhanced Death Benefits. •   Not available on qualified annuity which has been continued by surviving spouse or beneficiary as a new owner.		•   Issue age 0-85, but not yet 86 years old (unless state law requires a lower maximum issue age). •   Single Annuitant ONLY. Annuitant must be an Owner (unless owner is a non-natural person) •   Maximum of 2 living Joint Owners (with one being the Annuitant) •   Cannot be added to a policy with other active GMLB or GMIB riders. •   Cannot be added on policies with Growth or Double Enhanced Death Benefits. •   Not available on qualified annuity which has been continued by surviving spouse or beneficiary as a new owner.
Base Benefit and Optional Fees	Percentage of WB. Additional option fees would be added to the base.		Percentage of WB. Additional option fees would be added to the base.
	Single Life		Single Life
	Base Fee	0.60%	Base Fee	0.90%
	DB Fee	0.25%	DB Fee	0.25%
	IE Benefit Fee	0.15%	IE Benefit Fee	0.15%
	Joint Life		Joint Life
	Base Fee	0.90%	Base Fee	0.90%
	DB Fee	0.20%	DB Fee	0.20%
	IE Benefit Fee	0.30%	IE Benefit Fee	0.30%
			NOTE: Prior to 1/17/09 the Base Fee for Single and Joint life riders was 0.75%
Fee Frequency	•   Fee is deducted annually during the accumulation phase on each rider anniversary. •   A pro-rated fee is deducted at the time the rider is terminated or upgraded.		•   Fee is deducted annually during the accumulation phase on each rider anniversary. •   A pro-rated fee is deducted at the time the rider is terminated or upgraded.

146

Rider Name	Retirement Income ChoiceSM3	Retirement Income ChoiceSM with Double Withdrawal Base Benefit3
Rider Form Number1	RGMB 27 0108 (w/o IE) RGMB 29 0108 (with IE)	RGMB 31 0708 (w/o IE) RGMB 33 0708 (with IE)
Death Benefit	For an additional fee, the optional death benefit may be elected with this rider. Upon the death of an annuitant2 , this rider will pay an additional death benefit amount equal to the excess, if any, of the RDB over the base policy death benefit and then this rider will terminate. The RDB does not reset due to the automatic step-up feature.	For an additional fee, the optional death benefit may be elected with this rider. Upon the death of an annuitant2 , this rider will pay an additional death benefit amount equal to the excess, if any, of the RDB over the base policy death benefit and then this rider will terminate. The RDB does not reset due to the automatic step-up feature.
Designated Funds Available - Policyholders who add these riders may only invest in the investment options listed. PLEASE NOTE: These investment options may not be available on all products. Please reference “Portfolios Associated With the Subaccount” Appendix in your prospectus for available funds. You cannot transfer any amount to any other non-designated subaccount without losing all your benefits under this rider.	TA AEGON Money Market TA AEGON Tactical Vanguard ETF - Balanced TA AEGON Tactical Vanguard ETF - Conservative TA AEGON Tactical Vanguard ETF - Growth TA AEGON US Government Securities TA PIMCO Total Return TA Vanguard ETF - Balanced TA Vanguard ETF - Conservative TA Vanguard ETF - Growth Fixed Account GPOs or DCA Accounts	TA AEGON Money Market TA AEGON Tactical Vanguard ETF - Balanced TA AEGON Tactical Vanguard ETF - Conservative TA AEGON Tactical Vanguard ETF - Growth TA AEGON US Government Securities TA PIMCO Total Return TA Vanguard ETF - Balanced TA Vanguard ETF - Conservative TA Vanguard ETF - Growth Fixed Account GPOs or DCA Accounts

147

Rider Name	Retirement Income ChoiceSM3		Retirement Income ChoiceSM with Double Withdrawal Base Benefit3
Rider Form Number1	RGMB 27 0108 (w/o IE) RGMB 29 0108 (with IE)		RGMB 31 0708 (w/o IE) RGMB 33 0708 (with IE)
Withdrawal Benefits - See “Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders” appendix for examples showing the effect of withdrawals on the WB.	The percentage is determined by the attained age of the annuitant2 at the time of the first withdrawal.		The percentage is determined by the attained age of the annuitant2 at the time of the first withdrawal.
	Age 1st WD	For Life WD%	Age 1st WD	Single Life WD%
	0-58	0.0%	0-58	0.0%
	59-69	5.0%	59-69	5.0%
	70-79	6.0%	70-79	6.0%
	80+	7.0%	80+	7.0%
	•   Starting the rider anniversary following the annuitant’s2 59th birthday, the withdrawal percentage increases above 0% which creates a RWA available under the rider for withdrawal.		Age 1st WD 0-58 59-69 70-79 80+	Joint Life WD% 0.0% 4.5% 5.5% 6.5%
	•   On each rider anniversary, the RWA will be reset equal to the greater of:     1) The WB multiplied by the Withdrawal Percentage based on the attained age of the annuitant2 at the time of their first withdrawal if applicable, and     2)The RMD amount for this policy for the current calendar year. •   The policyholder does not have to take the entire RWA in any year. •   If they do not take the full amount available, the remaining portion does not carry over to the next rider year.		•   Starting the rider anniversary following the annuitant’s2 59th birthday, the withdrawal percentage increases above 0% which creates a RWA available under the rider for withdrawal. •   On each rider anniversary, the RWA will be reset equal to the greater of:     1) The WB multiplied by the Withdrawal Percentage based on the attained age of the annuitant2 at the time of their first withdrawal if applicable, and     2)The RMD amount for this policy for the current calendar year. •   The policyholder does not have to take the entire RWA in any year. •   If they do not take the full amount available, the remaining portion does not carry over to the next rider year.

148

Rider Name	Retirement Income ChoiceSM3	Retirement Income ChoiceSM with Double Withdrawal Base Benefit3
Rider Form Number1	RGMB 27 0108 (w/o IE) RGMB 29 0108 (with IE)	RGMB 31 0708 (w/o IE) RGMB 33 0708 (with IE)
Automatic Step-Up Benefit	On each rider anniversary, the WB will be set to the greatest of: 1) The current WB: 2) The policy value on the rider anniversary; 3) The highest policy value on a rider monthiversarySM *; or 4) The current WB immediately prior to anniversary processing increased by the growth rate percentage** * Item 3) is set to zero if there have been any excess withdrawals in the current rider year. ** Item 4) is set to zero after the first 10 rider years or if there have been any withdrawals in the current rider year. A step-up will occur if the largest value is either 2) or 3) above. A step-up will allow the company to change the rider fee percentage after the 5th rider anniversary. •   If the largest value is 1) or 4) above, this is not considered a step-up. •   Owner will have a 30 day window after the rider anniversary to reject an automatic step-up if we increase the rider fee.—Must be in writing. •   If an owner rejects an automatic step-up, they retain the right to all future automatic step-ups.	On each rider anniversary, the WB will be set to the greatest of: 1) The current WB: 2) The policy value on the rider anniversary; 3) The highest policy value on a rider monthiversarySM *; or 4) The current WB immediately prior to anniversary processing increased by the growth rate percentage** * Item 3) is set to zero if there have been any excess withdrawals in the current rider year. ** Item 4) is set to zero after the first 10 rider years or if there have been any withdrawals in the current rider year. A step-up will occur if the largest value is either 2) or 3) above. A step-up will allow the company to change the rider fee percentage after the 5th rider anniversary. •   If the largest value is 1) or 4) above, this is not considered a step-up. •   Owner will have a 30 day window after the rider anniversary to reject an automatic step-up if we increase the rider fee.—Must be in writing. •   If an owner rejects an automatic step-up, they retain the right to all future automatic step-ups.

149

Rider Name	Retirement Income ChoiceSM3	Retirement Income ChoiceSM with Double Withdrawal Base Benefit3
Rider Form Number1	RGMB 27 0108 (w/o IE) RGMB 29 0108 (with IE)	RGMB 31 0708 (w/o IE) RGMB 33 0708 (with IE)
Exercising Rider	Exercising Base Benefit: The policyholder is guaranteed to be able to withdraw up to the RWA each calendar year even if the policy value is zero at the time of withdrawal. The rider benefits cease when the annuitant2 has died.	Exercising Base Benefit: The policyholder is guaranteed to be able to withdraw up to the RWA each calendar year even if the policy value is zero at the time of withdrawal. The rider benefits cease when the annuitant2 has died.
	Exercising Death Option: This optional feature may be elected with this rider. Upon the death of an annuitant2 , this rider will pay an additional death benefit amount equal to the excess, if any, of the RDB over the greater of the base policy death benefit or any GMDB.	Exercising Death Option: This optional feature may be elected with this rider. Upon the death of an annuitant2 , this rider will pay an additional death benefit amount equal to the excess, if any, of the RDB over the greater of the base policy death benefit or any GMDB.
	Exercising the Income Enhancement Option: If qualifications are met, this optional feature doubles the income benefit percentage until the annuitant2 is no longer confined (either has left the facility or deceased).	Exercising the Income Enhancement Option: If qualifications are met, this optional feature doubles the income benefit percentage until the annuitant2 is no longer confined (either has left the facility or deceased).
	Qualifications:	Qualifications:
	– Confinement must be due to a medical necessity due to physical or cognitive ailment.	– Confinement must be due to a medical necessity due to physical or cognitive ailment.
	– Must be the annuitant2 who is confined.	– Must be the annuitant2 who is confined.
	– Waiting period of 1 year from the rider date before the increase in the income benefit percentage is applicable.	– Waiting period of 1 year from the rider date before the increase in the income benefit percentage is applicable.
	– Elimination period is 180 days within the last 12 months which can be satisfied during the waiting period.	– Elimination period is 180 days within the last 12 months which can be satisfied during the waiting period.
	– Proof of confinement is required. This may be a statement from a physician or a hospital or nursing facility administrator.	– Proof of confinement is required. This may be a statement from a physician or a hospital or nursing facility administrator.
	– Qualification standards can be met again on the annuitant’s2 life.	– Qualification standards can be met again on the annuitant’s2 life.

150

Rider Name	Retirement Income ChoiceSM3	Retirement Income ChoiceSM with Double Withdrawal Base Benefit3
Rider Form Number1	RGMB 27 0108 (w/o IE) RGMB 29 0108 (with IE)	RGMB 31 0708 (w/o IE) RGMB 33 0708 (with IE)
Income Benefit or Other Benefit Payout Considerations	Growth: Benefit is not elected separately, but is built into the rider. The WB will grow at 5% growth annually. This will only be credited on the rider anniversary for up to 10 rider years. If a withdrawal has occurred in the current rider year the 5% growth will not be applied.	Growth: Benefit is not elected separately, but is built into the rider. The WB will grow at 5% growth annually. This will only be credited on the rider anniversary for up to 10 rider years. If a withdrawal has occurred in the current rider year the 5% growth will not be applied.
	NOTE: There is not an adjustment or credit for partial years of interest. Growth is not accumulated daily. Only calculated at the end of the year if no withdrawals were taken.	Double Withdrawal Base Feature: If no withdrawals have been made within the first 10 rider years or the anniversary following attained age 67, the WB on that rider anniversary will be the greater of;
		1)the current WB; or
		2)premiums applied within 90 days of the rider date multiplied by 2.
		NOTE: There is not an adjustment or credit for partial years of interest. Growth is not accumulated daily. Only calculated at the end of the year if no withdrawals were taken.

151

Rider Name	Retirement Income ChoiceSM3	Retirement Income ChoiceSM with Double Withdrawal Base Benefit3
Rider Form Number1	RGMB 27 0108 (w/o IE) RGMB 29 0108 (with IE)	RGMB 31 0708 (w/o IE) RGMB 33 0708 (with IE)
Rider Upgrade	•   Upgrades allowed within a 30 day window following each 5th rider anniversary.	•   Upgrades allowed within a 30 day window following each 5th rider anniversary.
	•   Rider availability and fees may vary at time of upgrade	•   Rider availability and fees may vary at time of upgrade
	•   Upgrades are subject to issue age restrictions of the rider at the time of upgrade. Currently the maximum upgrade age is 85 years old.	•   Upgrades are subject to issue age restrictions of the rider at the time of upgrade. Currently the maximum upgrade age is 85 years old.
	•   An upgrade will reset the WB, RDB, RWA and Income Benefit determination.	•   An upgrade will reset the WB, RDB, TWA and Income Benefit determination.
	•   Rider Fee percentage will be the fee percentage that applies to the new rider at the time of upgrade.	•   Rider Fee Percentage will be the fee percentage that applies to the new rider at the time of upgrade.
	•   Growth percentage will be the percentage available at the time of upgrade.	•   Growth percentage will be the percentage available at the time of upgrade.
Rider Termination	•   The rider can be “free looked” within 30 days of issue. The request must be made in writing.	•   The rider can be “free looked” within 30 days of issue. The request must be made in writing.
	•   The rider will be terminated upon policy surrender, annuitization, annuitant2 death or upgrade.	•   The rider will be terminated upon policy surrender, annuitization, annuitant2 death or upgrade.
	•   The date the policy to which this rider is attached is assigned or if the owner is changed without our approval.	•   The date the policy to which this rider is attached is assigned or if the owner is changed without our approval.
	•   Termination allowed within 30 day window following each 5th rider anniversary.	•   Termination allowed within 30 day window following each 5th rider anniversary.
	•   After termination, there is no wait period to re-add the rider, assuming the rider is still being offered.	•   After termination, there is no wait period to re-add the rider, assuming the rider is still being offered.
	•   The rider will be terminated the date we receive written notice from you requesting termination.	•   The rider will be terminated the date we receive written notice from you requesting termination.

152

Rider Name	Retirement Income ChoiceSM 1.43	Retirement Income ChoiceSM 1.23
Rider Form Number1	RGMB 37 0809 (w/o IE) RGMB 38 0809 (with IE)	RGMB 35 0109 (w/o IE) RGMB 36 0109 (with IE)
Purpose of Rider	This is a GLWB rider that guarantees withdrawals for the annuitant’s2 lifetime, regardless of policy value.	This is a GLWB rider that guarantees withdrawals for the annuitant’s2 lifetime, regardless of policy value.
	•     The policyholder can withdraw the RWA each rider year until the death of the annuitant.2	•     The policyholder can withdraw the RWA each rider year until the death of the annuitant.2
	•     This benefit is intended to provide a level of payments regardless of the performance of the designated variable investment options you select.	•     This benefit is intended to provide a level of payments regardless of the performance of the designated variable investment options you select.
Availability	Issue age 0-85, but not yet 86 years old (unless state law requires a lower maximum issue age). •     Single Annuitant ONLY. Annuitant must be an Owner (unless owner is a non-natural person) •     Maximum of 2 living Joint Owners (with one being the Annuitant) •     Cannot be added to a policy with other active GMLB or GMIB riders. •     Cannot be added on policies with Growth or Double Enhanced Death Benefits. •     Not available on qualified annuity which has been continued by surviving spouse or beneficiary as a new owner.	•     Issue age 0-85, but not yet 86 years old (unless state law requires a lower maximum issue age). •     Single Annuitant ONLY. Annuitant must be an Owner (unless owner is a non-natural person) •     Maximum of 2 living Joint Owners (with one being the Annuitant) •     Cannot be added to a policy with other active GMLB or GMIB riders. •     Cannot be added on policies with Growth or Double Enhanced Death Benefits. •     Not available on qualified annuity which has been continued by surviving spouse or beneficiary as a new owner.

153

Rider Name	Retirement Income ChoiceSM 1.43		Retirement Income ChoiceSM 1.23
Rider Form Number1	RGMB 37 0809 (w/o IE) RGMB 38 0809 (with IE)		RGMB 35 0109 (w/o IE) RGMB 36 0109 (with IE)
Base Benefit and Optional Fees	Fee based on designated allocation groups and the optional benefits selected. If you elect a combination of designated allocations from among the various groups below, then your fee will be based on a weighted average of your choices.		Fee based on designated allocation groups and the optional benefits selected. If you elect a combination of designated allocations from among the various groups below, then your fee will be based on a weighted average of your choices.
	Base Benefit Fees:		Base Benefit Fees (after 12/12/11):
	Group A	1.40%	OAM Option	1.25%
	Group B	1.00%	Group A	1.55%
	Group C	0.45%	Group B	1.10%
	Additional option fees would be added to		Group C	0.70%
	the base and are as follows:		Additional option fees would be added to
	DB Single Life	0.25%	the base and are as follows:
	DB Joint Life	0.20%	DB Single Life	0.25%
	IE Single Life	0.15%	DB Joint Life	0.20%
	IE Joint Life	0.30%	IE Single Life	0.30%
			IE Joint Life	0.50%
			Base Benefit Fees (prior to 12/12/11):
			OAM Option	1.20%
			Group A	1.40%
			Group B	1.00%
			Group C	0.45%
			Additional option fees would be added to the base and are as follows:
			DB Single Life	0.25%
			DB Joint Life	0.20%
			IE Single Life	0.15%
			IE Joint Life	0.30%

154

Rider Name	Retirement Income ChoiceSM 1.43	Retirement Income ChoiceSM 1.23
Rider Form Number1	RGMB 37 0809 (w/o IE) RGMB 38 0809 (with IE)	RGMB 35 0109 (w/o IE) RGMB 36 0109 (with IE)
Fee Frequency	•     The fee is calculated at issue and each subsequent rider quarter for the upcoming quarter based on the fund values and WB at that point in time and stored.	•     The fee is calculated at issue and each subsequent rider quarter for the upcoming quarter based on the fund values and WB at that point in time and stored.
	•     Deducted at each rider quarter-versary in arrears during the accumulation phase.	•     Deducted at each rider quarter-versary in arrears during the accumulation phase.
	•     The fee is calculated on a quarterly basis and varies depending on the fund allocation option you have chosen.	•     The fee is calculated on a quarterly basis and varies depending on the fund allocation option you have chosen.
	•     A “rider fee adjustment” will be applied for transfers between allocation groups and for subsequent premium payments and withdrawals that change the withdrawal base.	•     A “rider fee adjustment” will be applied for transfers between allocation groups and for subsequent premium payments and withdrawals that change the withdrawal base.
	•     The base rider fee adjustment will be calculated using the same formula as the base rider fee and compare the fee for the remainder of the rider quarter to the initially calculated fee for the same period.	•     The base rider fee adjustment will be calculated using the same formula as the base rider fee. •     The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be allocated.
	•     The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be allocated.	•     A pro-rated fee is deducted at the time the rider is terminated or upgraded.
	•     A pro-rated fee is deducted at the time the rider is terminated or upgraded.
Death Benefit	For an additional fee, the optional death benefit may be elected with this rider. Upon the death of an annuitant2 , this rider will pay an additional death benefit amount equal to the excess, if any, of the RDB over the base policy death benefit and then this rider will terminate.	For an additional fee, the optional death benefit may be elected with this rider. Upon the death of an annuitant2 , this rider will pay an additional death benefit amount equal to the excess, if any, of the RDB over the base policy death benefit and then this rider will terminate.
	The RDB does not reset due to the automatic step-up feature.	The RDB does not reset due to the automatic step-up feature.

155

Rider Name	Retirement Income ChoiceSM 1.43	Retirement Income ChoiceSM 1.23
Rider Form Number1	RGMB 37 0809 (w/o IE) RGMB 38 0809 (with IE)	RGMB 35 0109 (w/o IE) RGMB 36 0109 (with IE)
Designated Funds Available -	Designated Allocation Group A	Designated Allocation Group A
Policyholders who add these riders may only invest in the investment options listed.	TA AEGON Tactical Vanguard ETF - Growth TA Vanguard ETF - Growth	TA AEGON Tactical Vanguard ETF - Growth TA Vanguard ETF - Growth
	Designated Allocation Group B	Designated Allocation Group B
PLEASE NOTE: These investment options may not be available on all products. Please reference “Portfolios Associated With the Subaccount” Appendix in your prospectus for available funds. You cannot transfer any amount to any other non-designated subaccount without losing all your benefits under this rider.	TA AEGON Tactical Vanguard ETF - Balanced TA Vanguard ETF - Balanced Designated Allocation Group C TA AEGON Money Market TA AEGON Tactical Vanguard ETF - Conservative TA AEGON U.S. Government Securities TA Vanguard ETF - Conservative Fixed Account	TA AEGON Tactical Vanguard ETF - Balanced TA Vanguard ETF - Balanced Designated Allocation Group C TA AEGON Money Market TA AEGON Tactical Vanguard ETF - Conservative TA AEGON U.S. Government Securities TA PIMCO Total Return TA Vanguard ETF - Conservative Fixed Account
Allocation Methods	N/A	Open Allocation Method (OAM):
		•        This program will automatically allocate assets from the policy holder’s separate accounts to a subaccount of our choosing when the policy value has dropped relative to the guaranteed amount.
		•       If the policy value increases enough in relation to the guaranteed amounts, the money will be moved back into the separate accounts (pro-rata based on the policy holder’s current separate account values).
		•        The allocation of assets between the accounts is at our sole discretion but will initially use modern financial theory to determine the correct allocation.
		•       The policyholder may not allocate premium payments to, nor transfer policy value into or out of the OAM investment options.
		Current OAM Safe Fund:TA ProFund UltraBear

156

Rider Name	Retirement Income ChoiceSM 1.43		Retirement Income ChoiceSM 1.23
Rider Form Number1	RGMB 37 0809 (w/o IE) RGMB 38 0809 (with IE)		RGMB 35 0109 (w/o IE) RGMB 36 0109 (with IE)
Withdrawal Benefits - See “Adjusted Partial Surrenders - Guaranteed Lifetime Withdrawal Benefit Riders” appendix for examples showing the effect of withdrawals on the WB.	The percentage (after 2/1/2010) is determined by the attained age of the annuitant2 at the time of the first withdrawal.		The percentage (after 12/12/2011) is determined by the attained age of the annuitant2 at the time of the first withdrawal.
	Age 1st WD	Single Life WD%	Age 1st WD	Single Life WD%
	0 - 58	0.0%	0 - 58	0.0%
	59-64	4.0%	59-64	4.0%
	65-74	5.0%	65-79	5.0%
	75 +	6.0%	80 +	6.0%
	Age 1st WD	Joint Life WD%	Age 1st WD	Joint Life WD%
	0 - 58	0.0%	0 - 58	0.0%
	59-64	3.5%	59-64	3.5%
	65-74	4.5%	65-79	4.5%
	75 +	5.5%	80 +	5.5%
	NOTE: Prior to 2/1/2010 the age bands regarding the withdrawal percentages above were as follows: 0-58     59-69     70-79     80+ •      Starting the rider anniversary following the annuitant’s2 59th birthday, the withdrawal percentage increases above 0% which creates a RWA available under the rider for withdrawal. •      On each rider anniversary, the RWA will be reset equal to the greater of:     1) The WB multiplied by the Withdrawal Percentage based on the attained age of the annuitant2 at the time of their first withdrawal if applicable, and     2)The RMD amount for this policy for the current calendar year. •      The policyholder does not have to take the entire RWA in any year. •      If they do not take the full amount available, the remaining portion does not carry over to the next rider year.		NOTE: Prior to 2/1/2010 the age bands regarding the withdrawal percentages above were as follows: 0-58     59-69     70-79     80+ - After 2/1/2010 and prior to 12/12/2011 the age bands regarding the withdrawal percentages above were as follows: 0-58     59-64     65-74     75+ •      Starting the rider anniversary following the annuitant’s2 59th birthday, the withdrawal percentage increases above 0% which creates a RWA available under the rider for withdrawal. •      On each rider anniversary, the RWA will be reset equal to the greater of:     1) The WB multiplied by the Withdrawal Percentage based on the attained age of the annuitant2 at the time of their first withdrawal if applicable, and     2)The RMD amount for this policy for the current calendar year. •      The policyholder does not have to take the entire RWA in any year. •      If they do not take the full amount available, the remaining portion does not carry over to the next rider year.

157

Rider Name	Retirement Income ChoiceSM 1.43	Retirement Income ChoiceSM 1.23
Rider Form Number1	RGMB 37 0809 (w/o IE) RGMB 38 0809 (with IE)	RGMB 35 0109 (w/o IE) RGMB 36 0109 (with IE)
Automatic Step-Up Benefit	On each rider anniversary, the WB will be set to the greatest of:	On each rider anniversary, the WB will be set to the greatest of:
	1) The current WB:	1) The current WB:
	2) The policy value on the rider anniversary;	2) The policy value on the rider anniversary;
	3) The highest policy value on a rider monthiversarySM *; or	3) The highest policy value on a rider monthiversarySM *; or
	4) The current WB immediately prior to anniversary processing increased by the growth rate percentage**	4) The current WB immediately prior to anniversary processing increased by the growth rate percentage**
	* Item 3) is set to zero if there have been any excess withdrawals in the current rider year.	* Item 3) is set to zero if there have been any excess withdrawals in the current rider year.
	** Item 4) is set to zero after the first 10 years or if there have been any withdrawals in the current rider year.	** Item 4) is set to zero after the first 10 years or if there have been any withdrawals in the current rider year.
	A step-up will occur if the largest value is either 2) or 3) above. A step-up will allow the company to change the rider fee percentage after the 5th rider anniversary.	A step-up will occur if the largest value is either 2) or 3) above. A step-up will allow the company to change the rider fee percentage after the 5th rider anniversary.
	•     If the largest value is 1) or 4) above, this is not considered a step-up.	•     If the largest value is 1) or 4) above, this is not considered a step-up.
	•     Owner will have a 30 day window after the rider anniversary to reject an automatic step-up if we increase the rider fee.—Must be in writing.	•     Owner will have a 30 day window after the rider anniversary to reject an automatic step-up if we increase the rider fee.—Must be in writing.
	•     If an owner rejects an automatic step-up, they retain the right to all future automatic step-ups.	•     If an owner rejects an automatic step-up, they retain the right to all future automatic step-ups.
	NOTE: The benefit percentage will also increase if you have crossed into another age band prior to an automatic step-ups after the election date.	NOTE: The benefit percentage will also increase if you have crossed into another age band prior to an automatic step-ups after the election date.

158

Rider Name	Retirement Income ChoiceSM 1.43	Retirement Income ChoiceSM 1.23
Rider Form Number1	RGMB 37 0809 (w/o IE) RGMB 38 0809 (with IE)	RGMB 35 0109 (w/o IE) RGMB 36 0109 (with IE)
Exercising Rider	Exercising Base Benefit: The policyholder is guaranteed to be able to withdraw up to the RWA each rider year even if the policy value is zero at the time of withdrawal. The rider benefits cease when the annuitant2 has died.	Exercising Base Benefit: The policyholder is guaranteed to be able to withdraw up to the RWA each rider year even if the policy value is zero at the time of withdrawal. The rider benefits cease when the annuitant2 has died.
	Exercising Death Option: This optional feature may be elected with this rider. Upon the death of an annuitant2 , this rider will pay an additional death benefit amount equal to the excess, if any, of the RDB over the greater of the base policy death benefit or any GMDB.	Exercising Death Option: This optional feature may be elected with this rider. Upon the death of an annuitant2 , this rider will pay an additional death benefit amount equal to the excess, if any, of the RDB over the greater of the base policy death benefit or any GMDB.
	Exercising the Income Enhancement Option: If qualifications are met, this optional feature doubles the income benefit percentage until the annuitant2 is no longer confined (either has left the facility or deceased).	Exercising the Income Enhancement Option: If qualifications are met, this optional feature doubles the income benefit percentage until the annuitant2 is no longer confined (either has left the facility or deceased).
	Qualifications: – Confinement must be due to a medical necessity due to physical or cognitive ailment.	Qualifications: – Confinement must be due to a medical necessity due to physical or cognitive ailment.
	– Must be the annuitant2 who is confined.	– Must be the annuitant2 who is confined.
	– Waiting period of 1 year from the rider date before the increase in the income benefit percentage is applicable.	– Waiting period of 1 year from the rider date before the increase in the income benefit percentage is applicable.
	– Elimination period is 180 days within the last 12 months which can be satisfied during the waiting period.	– Elimination period is 180 days within the last 12 months which can be satisfied during the waiting period.
	– Proof of confinement is required. This may be a statement from a physician or a hospital or nursing facility administrator.	– Proof of confinement is required. This may be a statement from a physician or a hospital or nursing facility administrator.
	– Qualification standards can be met again on the annuitant’s2 life.	– Qualification standards can be met again on the annuitant’s2 life.

159

Rider Name	Retirement Income ChoiceSM 1.43	Retirement Income ChoiceSM 1.23
Rider Form Number1	RGMB 37 0809 (w/o IE) RGMB 38 0809 (with IE)	RGMB 35 0109 (w/o IE) RGMB 36 0109 (with IE)
Income Benefit or Other Benefit Payout Considerations	Growth: Benefit is not elected separately, but is built into the rider. The WB will grow at 5% growth annually. This will only be credited on the rider anniversary for up to 10 rider years. If a withdrawal has occurred in the current rider year the 5% growth will not be applied. NOTE: There is not an adjustment or credit for partial years of interest. Growth is not accumulated daily. Only calculated at the end of the year if no withdrawals were taken.	Growth: Benefit is not elected separately, but is built into the rider. The WB will grow at 5% growth annually. This will only be credited on the rider anniversary for up to 10 rider years. If a withdrawal has occurred in the current rider year the 5% growth will not be applied. NOTE: There is not an adjustment or credit for partial years of interest. Growth is not accumulated daily. Only calculated at the end of the year if no withdrawals were taken.
Rider Upgrade	•   Upgrades allowed within a 30 day window following each successive 5th rider anniversary. •   Rider availability and fees may vary at time of upgrade •   Upgrades are subject to issue age restrictions of the rider at the time of upgrade. Currently the maximum upgrade age is 85 years old. •   An upgrade will reset the WB and RDB. •   Rider Fee Percentage will be the fee percentage that applies to the new rider at the time of upgrade. •   Growth percentage will be the percentage available at the time of upgrade.	•   Upgrades allowed within a 30 day window following each successive 5th rider anniversary. •   Rider availability and fees may vary at time of upgrade •   Upgrades are subject to issue age restrictions of the rider at the time of upgrade. Currently the maximum upgrade age is 85 years old. •   An upgrade will reset the WB and RDB. •   Rider Fee Percentage will be the fee percentage that applies to the new rider at the time of upgrade. •   Growth percentage will be the percentage available at the time of upgrade.

160

Rider Name	Retirement Income ChoiceSM 1.43	Retirement Income ChoiceSM 1.23
Rider Form Number1	RGMB 37 0809 (w/o IE) RGMB 38 0809 (with IE)	RGMB 35 0109 (w/o IE) RGMB 36 0109 (with IE)
Rider Termination	•   The rider can be “free looked” within 30 days of issue. The request must be made in writing. •   The rider will be terminated upon policy surrender, annuitization, annuitant2 death or upgrade. •   The date the policy to which this rider is attached is assigned or if the owner is changed without our approval. •   Termination allowed within 30 day window following each successive 5th rider anniversary. •   After termination, there is no wait period to re-add the rider, assuming the rider is still being offered. •   The rider will be terminated the date we receive written notice from you requesting termination.	•   The rider can be “free looked” within 30 days of issue. The request must be made in writing. •   The rider will be terminated upon policy surrender, annuitization, annuitant2 death or upgrade. •   The date the policy to which this rider is attached is assigned or if the owner is changed without our approval. •   Termination allowed within 30 day window following each successive 5th rider anniversary. •   After termination, there is no wait period to re-add the rider, assuming the rider is still being offered. •   The rider will be terminated the date we receive written notice from you requesting termination.

¹Rider form number may be found on the bottom left corner of your rider pages.

²If the rider’s Joint Life option has been elected for an additional fee, the benefits and features available could differ from the Single Life Option based on the age of the annuitant’s spouse.

³This rider and additional options may vary for certain policies and may not be available for all policies. This disclosure explains the material features of the riders. The application and operation of the riders are governed by the terms and conditions of the rider itself.

161

TRANSAMERICA PRINCIPIUM^SM II VARIABLE ANNUITY

Issued by

TRANSAMERICA LIFE INSURANCE COMPANY

Supplement Dated May 1, 2013

to the

Prospectus dated May 1, 2013

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 Principium^SM II Variable Annuity dated May 1, 2013

STATEMENT OF ADDITIONAL INFORMATION

TRANSAMERICA PRINCIPIUM^SM II 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 Principium^SM II Variable Annuity offered by Transamerica Life Insurance Company. You may obtain a copy of the current prospectus, dated May 1, 2013, 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, 2013

TABLE OF CONTENTS

GLOSSARY OF TERMS	3
THE POLICY — GENERAL PROVISIONS	6
Owner	6
Entire Contract	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
INVESTMENT EXPERIENCE	11
Accumulation Units	11
Annuity Unit Value and Annuity Payment Rates	13
PERFORMANCE	15
HISTORICAL PERFORMANCE DATA	16
Money Market Yields	16
Total Returns	17
Other Performance Data	17
Adjusted Historical Performance Data	18
PUBLISHED RATINGS	18
STATE REGULATION OF US	18
ADMINISTRATION	19
RECORDS AND REPORTS	19
DISTRIBUTION OF THE POLICIES	19
VOTING RIGHTS	20
OTHER PRODUCTS	20
CUSTODY OF ASSETS	20
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	21
OTHER INFORMATION	21
FINANCIAL STATEMENTS	21
APPENDIX
CONDENSED FINANCIAL INFORMATION	22

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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 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.

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 applicable surrender charge and 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.

Excess Partial Surrender — The portion of a partial surrender (surrender) that exceeds the free amount.

3

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 surrender charges or excess interest adjustments.

Guaranteed Lifetime Withdrawal Benefit — Any optional benefit under the policy that provides a guaranteed minimum withdrawal benefit, including Living Benefits Rider, the Income Link^SM Rider, the Retirement Income Max^SM Rider or the Retirement Income Choice^SM 1.6 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 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 plus or minus excess interest adjustments plus the surrender charge on the portion of the requested partial surrender that is subject to the surrender charge); 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.

4

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 portfolio.

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.

Surrender Charge — A percentage of each premium payment that depends upon the length of time from the date of each premium payment. The surrender charge is assessed on full or partial surrenders from the policy. A surrender charge may also be referred to as a “contingent deferred sales charge.” If the Access Rider is elected, the surrender charge percentage is zero.

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.

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 in good order at the Administrative 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.

5

In order to supplement the description in the prospectus, the following provides additional information about the 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 Contract

The entire contract consists of the policy and any application, endorsements and riders. If any portion of the policy or rider attached thereto shall be found to be invalid, unenforceable or illegal, the remainder shall not in any way be affected or impaired thereby, but shall have the same force and effect as if the invalid, unenforceable or illegal portion had not been inserted.

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 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 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). These default options may be restricted with respect to qualified policies.

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.

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

7

are based on a 5% effective annual Assumed Investment Return and the “2000 Table” (male, female and unisex if required by law), 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. For certain qualified policies the use of unisex mortality tables may be required.

Determination of the First Variable Payment. The amount of the first variable payment depends upon the sex (if consideration of sex is allowed under state 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 or any other proof satisfactory to the Company will constitute due proof of death.

Upon receipt in good order 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 adjusted policy value. If the new owner is not the deceased owner’s spouse, however, (1) the adjusted 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.

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,

8

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 the TAX INFORMATION section in the prospectus for more information about these rules. Other rules may apply to qualified policies.

Assignment

During the lifetime of the annuitant you may assign any rights or benefits provided by the policy if your policy is a nonqualified policy. An assignment will not be binding on the Company until a copy has been filed at its administrative 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.

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.

9

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), 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).

INVESTMENT EXPERIENCE

A “net investment factor” is used to determine the value of accumulation units and annuity units, and to determine annuity payment rates.

Accumulation Units

Allocations of a premium payment directed to a subaccount are credited in the form of accumulation units. Each subaccount has a distinct accumulation unit value. The number of units credited is determined by dividing the premium payment or amount transferred to the subaccount by the accumulation unit value of the subaccount as of the end of the valuation period during which the allocation is made. For each subaccount, the accumulation unit value for a given 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.

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Upon allocation to the selected subaccount, premium payments are converted into accumulation units of the subaccount. The number of accumulation units to be credited is determined by dividing the dollar amount allocated to each subaccount by the value of an accumulation unit for that subaccount as next determined after the premium payment is received at the Administrative Office or, in the case of the initial premium payment, when the enrollment form is completed, whichever is later. The value of an accumulation unit for each subaccount was arbitrarily established at $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
	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

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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 0.85% on an annual basis; On a daily basis, this equals 0.0000232.

Then, the net investment factor = (11.57 + 0 – 0) - 0.0000232 = Z = 1.0148891

                                                           (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.

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

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(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

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

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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

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, surrender charges, 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 include or exclude surrender charges. These figures may also reflect the premium enhancement, if any.

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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.

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 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 yield calculations also do not reflect surrender charges that may be applicable to a particular policy. Surrender charges range from 5% to 0% of the amount of premium payments surrendered based on the number of years since the premium payment was made. Surrender charges are based on the number of years since the date the premium payment was made, not the policy issue date.

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

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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.

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. Total return calculations will reflect the effect of surrender charges that may be applicable to a particular period. 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 except that the surrender charge percentage will be assumed to be 0%.

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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 except that the surrender charge percentage will be assumed to be 0%:

CTR = (ERV / P)-1

Where:
CTR	=	The cumulative total return net of subaccount recurring charges for the period.
ERV	=	The ending redeemable value of the hypothetical investment at the end of the period.
P	=	A hypothetical initial payment of $1,000.

All non-standard performance data will only be advertised if the standard performance data is also disclosed.

Adjusted Historical Performance Data

From time to time, sales literature or advertisements may quote average annual total returns for periods prior to the date a particular subaccount commenced operations. Such performance information for the subaccounts will be calculated based on the performance of the various portfolios and the assumption that the subaccounts were in existence for the same periods as those indicated for the portfolios, with the level of policy charges that are currently in effect.

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 US

We are subject to the laws of jurisdiction governing insurance companies and to regulation by the jurisdiction Department of Insurance. An annual statement in a prescribed form is filed with the Department of Insurance each year covering our operations for the preceding year and our financial condition as of the end of such year. Regulation by the Department of Insurance includes periodic examination to determine our contract liabilities and reserves so that the Department may determine the items are correct. Our books and accounts are subject to review by the Department of Insurance at all times, and a full examination of our operations are conducted periodically by the National Association of Insurance Commissioners. In addition, we are subject to regulation under the insurance laws of other jurisdictions in which it may operate.

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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.

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 and “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 2012, 2011 and 2010, the amounts paid to TCI in connection with all policies sold through the separate account were $12,058,273, $3,678,662 and $2,011,106, 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.

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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.

After the annuity commencement date, the owner 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

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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.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The financial statements of the Separate Account VA B, at December 31, 2012 and for the periods disclosed in the financial statements, the financial statements of Separate Account VA EE, at December 31, 2012, 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, 2012 and 2011, and for each of the three years in the period ended December 31, 2012, 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.

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 PrincipiumSM II 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.

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APPENDIX

CONDENSED FINANCIAL INFORMATION

The following tables list the accumulation unit values and the number of accumulation units outstanding for the total separate account expenses listed therein for each subaccount.

		Separate Account Expense 2.00%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA Efficient Markets - Service Class(1) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.050629 $1.095602 $0.994421 $0.989359	$1.155634 $1.050629 $1.095602 $0.994421	761.560 764.197 1,728.302 0.000
TA PIMCO Total Return - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.195264 $1.150660 $1.097545 $0.967159 $1.000000	$1.257509 $1.195264 $1.150660 $1.097545 $0.967159	113,042.196 146,366.276 138,794.744 141,107.461 0.000
TA AEGON Money Market - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$0.941465 $0.960194 $0.979350 $0.998815 $1.000000	$0.922950 $0.941465 $0.960194 $0.979350 $0.998815	3,618.336 3,630.698 10,629.094 27,426.340 142,388.676
TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.140923 $1.084647 $1.061512 $1.039124 $1.000000	$1.172848 $1.140923 $1.084647 $1.061512 $1.039124	0.000 0.000 0.000 0.000 0.000
PAM TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.140923 $1.084647 $1.061512 $1.039124 $1.000000	$1.172848 $1.140923 $1.084647 $1.061512 $1.039124	0.000 0.000 0.000 0.000 0.000
TA Vanguard ETF - Conservative - Service Class(2) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.082666 $1.070290 $0.997673 $0.999946	$1.131562 $1.082666 $1.070290 $0.997673	0.000 0.000 0.000 0.000
TA Vanguard ETF - Balanced - Service Class(3) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.071340 $1.076920 $0.992347 $0.868604 $1.000000	$1.138414 $1.071340 $1.076920 $0.992347 $0.868604	205,254.681 400,105.185 410,580.002 431,855.751 0.000
TA Vanguard ETF - Growth - Service Class(1)(4) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.020119 $1.052413 $0.949921 $0.786588 $1.000000	$1.115566 $1.020119 $1.052413 $0.949921 $0.786588	784,683.600 909,550.025 848,690.284 888,839.815 0.000
		Separate Account Expense 1.65%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA Efficient Markets - Service Class(1) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.058293 $1.099812 $0.994822 $0.989369	$1.168100 $1.058293 $1.099812 $0.994822	881.968 899.965 918.329 0.000

22

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.65%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA PIMCO Total Return - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.209190 $1.160075 $1.102731 $0.968388 $1.000000	$1.276566 $1.209190 $1.160075 $1.102731 $0.968388	224,510.030 256,477.745 217,151.577 249,177.513 50,554.070
TA AEGON Money Market - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$0.952432 $0.968071 $0.984007 $1.000087 $1.000000	$0.936961 $0.952432 $0.968071 $0.984007 $1.000087	19,966.385 0.000 0.000 0.000 317,148.198
TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.154197 $1.093516 $1.066519 $1.040444 $1.000000	$1.190596 $1.154197 $1.093516 $1.066519 $1.040444	95,044.281 69,302.126 49,046.606 23,235.402 0.000
PAM TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.154197 $1.093516 $1.066519 $1.040444 $1.000000	$1.190596 $1.154197 $1.093516 $1.066519 $1.040444	0.000 0.000 0.000 0.000 0.000
TA Vanguard ETF - Conservative - Service Class(2) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.090563 $1.074408 $0.998075 $0.999955	$1.143767 $1.090563 $1.074408 $0.998075	0.000 0.000 0.000 0.000
TA Vanguard ETF - Balanced - Service Class(3) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.083783 $1.085712 $0.997018 $0.869707 $1.000000	$1.155628 $1.083783 $1.085712 $0.997018 $0.869707	2,214,485.475 2,266,029.945 2,324,222.049 1,702,434.936 166,928.699
TA Vanguard ETF - Growth - Service Class(1)(4) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.031979 $1.060999 $0.954402 $0.787587 $1.000000	$1.132437 $1.031979 $1.060999 $0.954402 $0.787587	3,216,832.976 4,273,497.473 4,471,789.123 4,297,072.155 1,675,892.199

		1.55%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA Efficient Markets - Service Class(1) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.060487 $1.101020 $0.994938 $0.989372	$1.171675 $1.060487 $1.101020 $0.994938	428,708.224 424,135.545 192,849.145 0.000
TA PIMCO Total Return - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.213185 $1.162771 $1.104210 $0.968744 $1.000000	$1.282050 $1.213185 $1.162771 $1.104210 $0.968744	1,725,328.604 1,072,642.648 773,488.062 1,385,515.478 0.000
TA AEGON Money Market - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$0.955580 $0.970297 $0.985276 $1.000451 $1.000000	$0.940929 $0.955580 $0.970297 $0.985276 $1.000451	88,273.446 123,014.275 115,103.138 116,940.431 0.000

23

CONDENSED FINANCIAL INFORMATION — (Continued)

		1.55%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.158025 $1.096078 $1.067958 $1.040818 $1.000000	$1.195731 $1.158025 $1.096078 $1.067958 $1.040818	399,649.317 447,151.765 414,729.703 43,725.064 272,613.271
PAM TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.158025 $1.096078 $1.067958 $1.040818 $1.000000	$1.195731 $1.158025 $1.096078 $1.067958 $1.040818	450,667.325 0.000 0.000 0.000 0.000
TA Vanguard ETF - Conservative - Service Class(2) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.092843 $1.075590 $0.998190 $0.999958	$1.147291 $1.092843 $1.075590 $0.998190	268,114.544 305,581.855 95,196.246 0.000
TA Vanguard ETF - Balanced - Service Class(3) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.087387 $1.088247 $0.998366 $0.870025 $1.000000	$1.160611 $1.087387 $1.088247 $0.998366 $0.870025	2,085,253.628 1,687,057.834 1,833,487.122 1,112,327.932 802,739.797
TA Vanguard ETF - Growth - Service Class(1)(4) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.035415 $1.063492 $0.955701 $0.787876 $1.000000	$1.137337 $1.035415 $1.063492 $0.955701 $0.787876	5,881,240.038 4,895,895.826 4,307,800.653 3,153,262.670 283,924.172
TA Vanguard ETF - Aggressive Growth - Service Class(5) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.091708 $1.153818 $1.024147 $0.999958	$1.253052 $1.091708 $1.153818 $1.024147	194,543.250 212,908.223 139,009.813 0.000
TA ProFunds UltraBear Fund - Service Class OAM Subaccount Inception Date May 1, 2009	2012 2011 2010 2009	$0.319599 $0.405419 $0.562151 $1.000000	$0.222069 $0.319599 $0.405419 $0.562151	59,607.351 139,246.919 17,809.608 0.000
TA AEGON Tactical Vanguard ETF - Balanced - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.960147 $1.000000	$1.023855 $0.960147	367,167.593 0.000
TA AEGON Tactical Vanguard ETF - Conservative - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.979952 $1.000000	$1.030348 $0.979952	131,309.829 97,300.787
TA AEGON Tactical Vanguard ETF - Growth - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.919566 $1.000000	$1.004652 $0.919566	27,993.659 3,780.457
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.008581	79,321.533
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.003629	35,199.997

		Separate Account Expense 1.35%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA Efficient Markets – Service Class(1) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.064927 $1.103448 $0.995171 $0.989377	$1.178904 $1.064927 $1.103448 $0.995171	2,866,460.625 1,649,848.831 514,930.357 0.000

24

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.35%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA PIMCO Total Return - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.221259 $1.168216 $1.107200 $0.969449 $1.000000	$1.293147 $1.221259 $1.168216 $1.107200 $0.969449	5,767,121.258 5,189,735.893 3,657,822.098 2,111,302.592 264,528.453
TA AEGON Money Market - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$0.961993 $0.974885 $0.988009 $1.001182 $1.000000	$0.949154 $0.961993 $0.974885 $0.988009 $1.001182	4,856,206.611 3,475,808.722 2,436,816.689 1,765,872.555 166,464.340
TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.165733 $1.101195 $1.070836 $1.041579 $1.000000	$1.206074 $1.165733 $1.101195 $1.070836 $1.041579	2,523,306.082 2,501,327.518 2,096,224.111 779,077.533 554,881.381
PAM TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.165733 $1.101195 $1.070836 $1.041579 $1.000000	$1.206074 $1.165733 $1.101195 $1.070836 $1.041579	17,782.950 69,044.770 0.000 0.000 0.000
TA Vanguard ETF - Conservative - Service Class(2) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.097415 $1.077970 $0.998420 $0.999963	$1.154373 $1.097415 $1.077970 $0.998420	7,368,081.943 4,889,914.413 1,415,395.565 2,374.839
TA Vanguard ETF - Balanced - Service Class(3) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.094621 $1.093332 $1.001063 $0.870662 $1.000000	$1.170642 $1.094621 $1.093332 $1.001063 $0.870662	15,128,635.055 11,877,382.628 8,925,545.555 8,908,014.331 676,941.298
TA Vanguard ETF - Growth - Service Class(1)(4) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.042321 $1.068478 $0.958292 $0.788462 $1.000000	$1.147188 $1.042321 $1.068478 $0.958292 $0.788462	12,985,707.921 15,221,017.220 14,834,226.440 10,586,807.773 2,873,473.540
TA Vanguard ETF - Aggressive Growth - Service Class(5) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.096261 $1.156356 $1.024383 $0.999963	$1.260785 $1.096261 $1.156356 $1.024383	1,304,243.566 1,305.042.391 536,521.987 0.000
TA ProFunds UltraBear Fund - Service Class OAM Subaccount Inception Date May 1, 2009	2012 2011 2010 2009	$0.321281 $0.406761 $0.562904 $1.000000	$0.223685 $0.321281 $0.406761 $0.562904	233,434.583 546,175.670 0.000 0.000
TA AEGON Tactical Vanguard ETF - Balanced - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.961403 $1.000000	$1.027230 $0.961403	2,038,935.904 870,534.830
TA AEGON Tactical Vanguard ETF - Conservative - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.981233 $1.000000	$1.033744 $0.981233	2,118,462.555 1,040,501.874
TA AEGON Tactical Vanguard ETF - Growth - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.920764 $1.000000	$1.007957 $0.920764	1,091,091.421 327,518.031
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.009910	354,143.183
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.004945	186,940.429

25

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.20%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA Efficient Markets - Service Class(1) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.068267 $1.105283 $0.995345 $0.989381	$1.184372 $1.068267 $1.105283 $0.995345	3,315,444.602 2,604,232.700 1,051,357.333 0.000
TA PIMCO Total Return - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.227383 $1.172329 $1.109458 $0.969983 $1.000000	$1.301568 $1.227383 $1.172329 $1.109458 $0.969983	10,223,832.574 7,428,752.151 4,918,343.675 2,392,746.971 141,884.002
TA AEGON Money Market - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$0.966765 $0.978335 $0.990022 $1.001727 $1.000000	$0.955341 $0.966765 $0.978335 $0.990022 $1.001727	1,887,217.469 3,863,757.305 2,752,825.199 2,454,818.950 220,640.004
TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.171579 $1.105082 $1.073021 $1.042149 $1.000000	$1.213928 $1.171579 $1.105082 $1.073021 $1.042149	5,004,417.324 2,225,164.043 1,950,101.643 2,488,408.304 73,361.081
PAM TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.171579 $1.105082 $1.073021 $1.042149 $1.000000	$1.213928 $1.171579 $1.105082 $1.073021 $1.042149	70,572.233 84,933.963 0.000 0.000 0.000
TA Vanguard ETF - Conservative - Service Class(2) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.100842 $1.079746 $0.998595 $0.999967	$1.159704 $1.100842 $1.079746 $0.998595	13,623,542.902 10,134,829.402 4,702,379.667 501,264.432
TA Vanguard ETF - Balanced - Service Class(3) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.100119 $1.097198 $1.003107 $0.871144 $1.000000	$1.178285 $1.100119 $1.097198 $1.003107 $0.871144	32,109,172.987 26,473,375.988 19,057,357.358 11,019,217.665 850,572.252
TA Vanguard ETF - Growth - Service Class(1)(4) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.047565 $1.072265 $0.960250 $0.788892 $1.000000	$1.154676 $1.047565 $1.072265 $0.960250 $0.788892	53,359,527.503 52,418,254.298 45,852,405.252 35,463,892.851 8,731,819.262
TA Vanguard ETF - Aggressive Growth - Service Class(5) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.099707 $1.158272 $1.024561 $0.999967	$1.266624 $1.099707 $1.158272 $1.024561	3,100,464.519 3,117,272.946 1,394,637.437 0.000
TA ProFunds UltraBear Fund - Service Class OAM Subaccount Inception Date May 1, 2009	2012 2011 2010 2009	$0.322547 $0.407765 $0.563459 $1.000000	$0.224906 $0.322547 $0.407765 $0.563459	1,236,162.773 1,541,615.512 28,113.976 9,391.458

26

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.20%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA AEGON Tactical Vanguard ETF - Balanced - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.962357 $1.000000	$1.029777 $0.962357	4,904,068.081 1,103,780.205
TA AEGON Tactical Vanguard ETF - Conservative - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.982195 $1.000000	$1.036287 $0.982195	2,510,039.147 529,942.250
TA AEGON Tactical Vanguard ETF - Growth - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.921669 $1.000000	$1.010446 $0.921669	2,111,282.214 486,100.805
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.010907	221,723.425
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.005947	182,067.545

		Separate Account Expense 1.00%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA Efficient Markets - Service Class(1) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.072752 $1.107725 $0.995576 $0.989386	$1.191717 $1.072752 $1.107725 $0.995576	5,292,154.999 4,042,697.146 1,213,444.456 71,418.127
TA PIMCO Total Return - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.235559 $1.177820 $1.112447 $0.970688 $1.000000	$1.312836 $1.235559 $1.177820 $1.112447 $0.970688	22,654,675.105 16,155,474.112 10,498,448.893 5,649,390.163 598,526.232
TA AEGON Money Market - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$0.973173 $0.982843 $0.992662 $1.002462 $1.000000	$0.963582 $0.973173 $0.982843 $0.992662 $1.002462	2,840,974.880 4,665,043.902 2,434,757.877 1,134,121.807 1,163,252.003
TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.179372 $1.110246 $1.075920 $1.042913 $1.000000	$1.224437 $1.179372 $1.110246 $1.075920 $1.042913	7,312,956.856 5,462,998.024 3,942,777.946 1,936,076.704 300,680.748
PAM TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.179372 $1.110246 $1.075920 $1.042913 $1.000000	$1.224437 $1.179372 $1.110246 $1.075920 $1.042913	20,299.322 384,913.021 0.000 8,105.166 9,281.440
TA Vanguard ETF - Conservative - Service Class(2) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.105463 $1.082146 $0.998832 $0.999973	$1.166881 $1.105463 $1.082146 $0.998832	22,568,794.206 15,456,428.178 6,581,744.365 197,528.717
TA Vanguard ETF - Balanced - Service Class(3) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.107479 $1.102363 $1.005834 $0.871781 $1.000000	$1.188527 $1.107479 $1.102363 $1.005834 $0.871781	94,164,871.952 75,092,536.499 41,059,590.657 21,038,153.378 2,352,941.105

27

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 1.00%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA Vanguard ETF - Growth - Service Class(1)(4) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.054544 $1.077284 $0.962852 $0.789470 $1.000000	$1.164688 $1.054544 $1.077284 $0.962852 $0.789470	89,612,111.012 76,704,279.680 57,325,654.618 34,995,559.762 3,866,145.276
TA Vanguard ETF - Aggressive Growth - Service Class(5) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.104316 $1.160828 $1.024800 $0.999973	$1.274471 $1.104316 $1.160828 $1.024800	6,800,729.621 4,918,685.034 1,566,389.333 0.000
TA ProFunds UltraBear Fund - Service Class OAM Subaccount Inceptin Date May 1, 2009	2012 2011 2010 2009	$0.324256 $0.409121 $0.564212 $1.000000	$0.226545 $0.324256 $0.409121 $0.564212	2,058,207.680 1,994,220.340 15,256.367 18,952.850
TA AEGON Tactical Vanguard ETF - Balanced - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.963618 $1.000000	$1.033185 $0.963618	18,919,636.405 2,645,092.754
TA AEGON Tactical Vanguard ETF - Conservative - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.983487 $1.000000	$1.039717 $0.983487	8,353,143.270 3,207,271.148
TA AEGON Tactical Vanguard ETF - Growth - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.922879 $1.000000	$1.013783 $0.922879	5,742,518.394 1,161,878.323
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.012242	2,046,191.866
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.007283	572,601.207

		Separate Account Expense 0.85%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA Efficient Markets - Service Class(1) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.076118 $1.109561 $0.995748 $0.989390	$1.197235 $1.076118 $1.109561 $0.995748	8,541,708.389 7,306,957.045 2,276,944.215 363.941
TA PIMCO Total Return - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.241773 $1.181992 $1.114726 $0.971217 $1.000000	$1.321428 $1.241773 $1.181992 $1.114726 $0.971217	14,535,530.529 12,594,077.711 6,587,087.169 3,747,234.205 324,007.630
TA AEGON Money Market - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$0.977994 $0.986311 $0.994679 $1.003016 $1.000000	$0.969804 $0.977994 $0.986311 $0.994679 $1.003016	2,906,115.443 3,538,887.537 2,078,681.387 1,565,832.498 142,382.709
TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.185307 $1.114186 $1.078119 $1.043481 $1.000000	$1.232441 $1.185307 $1.114186 $1.078119 $1.043481	4,045,,598.256 7,760,356.675 2,679,840.571 1,726,307.936 338,635.161
PAM TA AEGON U.S. Government Securities - Service Class Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.185307 $1.114186 $1.078119 $1.043481 $1.000000	$1.232441 $1.185307 $1.114186 $1.078119 $1.043481	3,881.260 32,552.052 0.000 0.000 0.000

28

CONDENSED FINANCIAL INFORMATION — (Continued)

		Separate Account Expense 0.85%
Subaccount	Year	Beginning AUV	Ending AUV	# Units
TA Vanguard ETF - Conservative - Service Class(2) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.108949 $1.083942 $0.999007 $0.999977	$1.172318 $1.108949 $1.083942 $0.999007	19,755,002.415 16,679,820.217 5,177,118.531 20,689.598
TA Vanguard ETF - Balanced - Service Class(3) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.113005 $1.106221 $1.007876 $0.872256 $1.000000	$1.196245 $1.113005 $1.106221 $1.007876 $0.872256	70,531,021.154 54,287,152.158 24,245,285.615 13,314,321.928 1,871,105.999
TA Vanguard ETF - Growth - Service Class(1)(4) Subaccount Inception Date August 18, 2008	2012 2011 2010 2009 2008	$1.059832 $1.081076 $0.964804 $0.789908 $1.000000	$1.172282 $1.059832 $1.081076 $0.964804 $0.789908	82,831,349.672 67,691,751.249 56,320,200.031 41,724,255.963 10,502,904.586
TA Vanguard ETF - Aggressive Growth - Service Class(5) Subaccount Inception Date November 19, 2009	2012 2011 2010 2009	$1.107787 $1.162759 $1.024979 $0.999977	$1.280375 $1.107787 $1.162759 $1.024979	7,551,923.335 5,115,418.909 2,569,367.527 0.000
TA ProFunds UltraBear Fund - Service Class OAM Subaccount Inception Date May 1, 2009	2012 2011 2010 2009	$0.325554 $0.410146 $0.564776 $1.000000	$0.227789 $0.325554 $0.410146 $0.564776	2,016,550.262 2,829,740.036 19,715.541 0.000
TA AEGON Tactical Vanguard ETF - Balanced - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.964568 $1.000000	$1.035744 $0.964568	9,544,041.576 1,069,012.852
TA AEGON Tactical Vanguard ETF - Conservative - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.984452 $1.000000	$1.042303 $0.984452	4,521,404.709 1,873,196.632
TA AEGON Tactical Vanguard ETF - Growth - Service Class Subaccount Inception Date May 2, 2011	2012 2011	$0.923802 $1.000000	$1.016311 $0.923802	5,790,317.924 1,332,861.647
TA Legg Mason Dynamic Allocation - Balanced - Service Class Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.013254	1,653,647.607
TA Legg Mason Dynamic Allocation - Growth - Service Class Subaccount Inception Date May 1, 2012	2012	$1.000000	$1.008284	422,292.992

29

FINANCIAL STATEMENTS AND SCHEDULES – STATUTORY BASIS

Transamerica Life Insurance Company

Years Ended December 31, 2012, 2011 and 2010

Transamerica Life Insurance Company

Financial Statements and Schedules – Statutory Basis

Years Ended December 31, 2012, 2011 and 2010

Contents

Report of Independent Registered Public Accounting Firm	1
Audited Financial Statements	2
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, 2012 and 2011, 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, 2012. 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 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 U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted accounting principles are described in Note 1. The effects on the accompanying 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 statutory-basis 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, 2012 and 2011, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2012.

1

However, in our opinion, the statutory-basis financial statements referred to above present fairly, in all material respects, the financial position of Transamerica Life Insurance Company at December 31, 2012 and 2011, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2012, 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 response to new accounting standards in 2012, the Company changed its method of accounting for deferred income taxes.

/s/ Ernst & Young LLP

April 3, 2013

2

Transamerica Life Insurance Company

Balance Sheets – Statutory Basis

(Dollars in Thousands, Except per Share Amounts)

	December 31
	2012		2011
Admitted assets
Cash and invested assets:
Cash, cash equivalents and short-term investments	$	4,386,102	$	3,116,452
Bonds:
Affiliated entities		40,426		62,919
Unaffiliated		36,681,566		39,722,288
Preferred stocks:
Affiliated entities		7,162		7,162
Unaffiliated		111,471		138,596
Common stocks:
Affiliated entities (cost: 2012—$961,200; 2011—$921,343)		1,440,426		1,429,294
Unaffiliated (cost: 2012—$167,843; 2011—$198,433)		218,026		229,973
Mortgage loans on real estate		5,756,749		6,830,030
Real estate, at cost less accumulated depreciation (2012—$41,312; 2011—$51,050)
Home office properties		70,864		68,830
Investment properties		8,090		20,514
Properties held for sale		4,100		6,405
Policy loans		708,794		727,684
Receivables for securities		4,475		3,593
Securities lending reinvested collateral assets		2,160,218		3,520,304
Derivatives		557,584		248,484
Collateral balance		6,213		6,213
Other invested assets		2,290,392		2,460,085
Total cash and invested assets		54,452,658		58,598,826
Accrued investment income		465,779		475,813
Cash surrender value of life insurance policies		316,533		309,919
Premiums deferred and uncollected		125,291		131,183
Current federal income tax recoverable		—		120,549
Net deferred income tax asset		652,973		716,608
Reinsurance receivable		158,536		230,426
Receivable from parent, subsidiaries and affiliates		51,246		154,163
Accounts receivable		290,758		191,268
General agents pension fund		44,732		42,282
Reinsurance deposit receivable		167,223		156,620
Amounts incurred under modified coinsurance agreement		35,403		46,520
Goodwill		27,968		35,736
Other assets		23,928		34,909
Separate account assets		48,684,223		41,473,473
Total admitted assets	$	105,497,251	$	102,718,295

3

	December 31
	2012			2011
Liabilities and capital and surplus
Liabilities:
Aggregate reserves for policies and contracts:
Life	$	14,844,093		$	14,826,292
Annuity		15,866,274			16,637,184
Accident and health		3,678,436			3,507,297
Policy and contract claim reserves:
Life		238,728			220,281
Accident and health		169,217			176,338
Liability for deposit-type contracts		5,187,660			5,995,687
Other policyholders’ funds		21,289			19,333
Federal income taxes payable		6,704			—
Municipal reverse repurchase agreements		89,724			88,828
Remittances and items not allocated		445,323			358,297
Case level liability		3,696			4,981
Payable for derivative cash collateral		971,392			1,094,942
Asset valuation reserve		915,880			879,479
Interest maintenance reserve		840,245			854,620
Funds held under reinsurance treaties		5,940,038			7,837,637
Reinsurance in unauthorized reinsurers		513			9,600
Commissions and expense allowances payable on reinsurance assumed		46,585			62,277
Payable to parent, subsidiaries and affiliates		7,245			243,112
Payable for securities		10,364			12,030
Payable for securities lending		2,160,218			3,520,304
Borrowed money		85,516			—
Transfers from separate accounts due or accrued (including $(915,131) and $(743,562) accrued for expense allowances recognized in reserves, net of reinsurance allowances at December 31, 2012 and 2011, respectively)		(2,496,726	)		(726,356	)
Amounts withheld or retained		157,590			149,180
Derivatives		357,183			107,235
Bank owned life insurance surrender payable		1,610,622			—
Other liabilities		260,341			311,966
Separate account liabilities		48,608,538			41,406,109
Total liabilities		100,026,688			97,596,653
Capital and surplus:
Common stock, $10 per share par value, 1,000,000 shares authorized, 676,190 issued and outstanding at December 31, 2012 and 2011		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, 2012 and 2011; 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, 2012 and 2011		1,597			1,597
Treasury stock, Series A Preferred, $10 per share par value, 42,500 shares as of December 31, 2012 and 2011		(58,000	)		(58,000	)
Aggregate write-ins for other than special surplus funds		—			432,568
Surplus notes		150,000			150,000
Paid-in surplus		3,346,065			3,326,311
Unassigned surplus		2,024,139			1,262,404
Total capital and surplus		5,470,563			5,121,642
Total liabilities and capital and surplus	$	105,497,251		$	102,718,295

See accompanying notes.

4

Transamerica Life Insurance Company

Statements of Operations – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2012			2011			2010
Revenues:
Premiums and other considerations, net of reinsurance:
Life	$	1,147,190		$	337,360		$	1,523,920
Annuity		9,948,086			8,845,105			6,931,132
Accident and health		711,538			681,591			710,067
Net investment income		2,729,527			2,615,858			2,919,171
Amortization of interest maintenance reserve		31,284			71,742			3,906
Commissions and expense allowances on reinsurance ceded		504,373			(1,597,611	)		892,482
Income from fees associated with investment management, administration and contract guarantees for separate accounts		603,433			494,516			380,170
Reserve adjustment on reinsurance ceded		(2,160,914	)		(159,096	)		(351,287	)
IMR adjustment due to reinsurance		63,262			307,904			—
Consideration received on reinsurance recapture and novations		43,455			—			—
Income from administrative service agreement with affilate		74,457			60,237			51,177
Other income		72,054			85,154			85,480
		13,767,745			11,742,760			13,146,218
Benefits and expenses:
Benefits paid or provided for:
Life benefits		940,593			993,834			1,133,801
Accident and health benefits		494,903			473,566			496,368
Annuity benefits		1,067,932			1,082,923			1,084,962
Surrender benefits		5,930,279			5,703,634			5,970,842
Other benefits		195,827			199,349			215,848
Increase (decrease) in aggregate reserves for policies and contracts:
Life		18,775			(201,230	)		51,172
Annuity		(770,871	)		(1,353,277	)		(1,017,181	)
Accident and health		150,798			88,562			100,880
		8,028,236			6,987,361			8,036,692
Insurance expenses:
Commissions		1,094,907			1,132,581			1,440,391
General insurance expenses		660,695			687,102			764,037
Taxes, licenses and fees		89,428			83,034			72,666
Net transfers to separate accounts		3,033,966			5,167,168			1,901,530
Change in case level liability		(1,284	)		(2,434	)		(5,821	)
Consideration paid on reinsurance transactions		—			352,463			—
Reinsurance transaction—modco reserve adjustment on reinsurance assumed		(205,194	)		(218,566	)		(262,273	)
Other expenses		46,754			602,274			984,633
		4,719,272			7,803,622			4,895,163
Total benefits and expenses		12,747,508			14,790,983			12,931,855
Gain (loss) from operations before dividends to policyholders, federal income tax benefit and net realized capital gains (losses) on investments	$	1,020,237		$	(3,048,223	)	$	214,363

5

Transamerica Life Insurance Company

Statements of Operations – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2012			2011			2010
Dividends to policyholders	$	8,651		$	9,496		$	10,074
Gain (loss) from operations before federal income tax benefit and net realized capital gains (losses) on investments		1,011,586			(3,057,719	)		204,289
Federal income tax benefit		(162,504	)		(174,917	)		(270,228	)
Gain (loss) from operations before net realized capital gains (losses) on investments		1,174,090			(2,882,802	)		474,517
Net realized capital gains (losses) on investments (net of related federal income taxes and amounts transferred to/from interest maintenance reserve)		(382,526	)		423,536			(56,838	)
Net income (loss)	$	791,564		$	(2,459,266	)	$	417,679

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		Surplus Notes		Paid-in Surplus		Unassigned Surplus			Total Capital and Surplus
Balance at January 1, 2010	$	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
Change in surplus as a result of reinsurance		—		—		—			—		—		—		(64,348	)		(64,348	)
Increase in admitted deferred tax asset pursuant 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

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			Surplus Notes		Paid-in Surplus		Unassigned Surplus			Total Capital and Surplus
Balance at December 31, 2010	$	6,762	$	1,597	$	(58,000	)	$	554,923		$	150,000	$	3,117,153	$	525,689		$	4,298,124
Net loss		—		—		—			—			—		—		(2,459,266	)		(2,459,266	)
Change in net unrealized capital gains/losses, net of tax		—		—		—			—			—		—		583,550			583,550
Change in net unrealized foreign exchange capital gains/losses, net of tax		—		—		—			—			—		—		(6,120	)		(6,120	)
Change in net deferred income tax asset		—		—		—			—			—		—		136,907			136,907
Change in other nonadmitted assets		—		—		—			—			—		—		(2,392	)		(2,392	)
Change in provision for reinsurance in unauthorized companies		—		—		—			—			—		—		(2,546	)		(2,546	)
Change in asset valuation reserve		—		—		—			—			—		—		16,524			16,524
Change in surplus in separate accounts		—		—		—			—			—		—		(2,863	)		(2,863	)
Change in surplus as a result of reinsurance		—		—		—			—			—		—		2,474,106			2,474,106
Change in admitted deferred tax asset pursuant pursuant to SSAP No. 10R		—		—		—			(122,355	)		—		—		—			(122,355	)
Capital contribution		—		—		—			—			—		200,000		—			200,000
Dissolution of NEF Investment Company		—		—		—			—			—		—		(1,185	)		(1,185	)
Long-term incentive compensation		—		—		—			—			—		9,158		—			9,158
Balance at December 31, 2011	$	6,762	$	1,597	$	(58,000	)	$	432,568		$	150,000	$	3,326,311	$	1,262,404		$	5,121,642

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, 2011	$	6,762	$	1,597	$	(58,000	)	$	432,568		$	150,000	$	3,326,311	$	1,262,404		$	5,121,642
Net income		—		—		—			—			—		—		791,564			791,564
Change in net unrealized capital gains/losses, net of tax		—		—		—			—			—		—		2			2
Change in net unrealized foreign exchange capital gains/losses, net of tax		—		—		—			—			—		—		9,563			9,563
Change in net deferred income tax asset		—		—		—			—			—		—		(105,935	)		(105,935	)
Change in other nonadmitted assets		—		—		—			—			—		—		49,645			49,645
Change in provision for reinsurance in unauthorized companies		—		—		—			—			—		—		9,087			9,087
Change in reserve on account of change in valuation basis		—		—		—			—			—		—		973			973
Change in asset valuation reserve		—		—		—			—			—		—		(36,401	)		(36,401	)
Change in surplus in separate accounts		—		—		—			—			—		—		8,197			8,197
Change in surplus as a result of reinsurance		—		—		—			—			—		—		(34,731	)		(34,731	)
Dividends to stockholders		—		—		—			—			—		—		(300,000	)		(300,000	)
Correction of error—IMR adjustment		—		—		—			—			—		—		(8,889	)		(8,889	)
Correction of error—claim waiver adjustment		—		—		—			—			—		—		(20,341	)		(20,341	)
Correction of error—reinsurance IMR gain deferral		—		—		—			—			—		—		(33,567	)		(33,567	)
Change in admitted deferred tax asset pursuant to SSAP No. 101		—		—		—			(432,568	)		—		—		432,568			—
Long-term incentive compensation		—		—		—			—			—		19,754		—			19,754
Balance at December 31, 2012	$	6,762	$	1,597	$	(58,000	)	$	—		$	150,000	$	3,346,065	$	2,024,139		$	5,470,563

See accompanying notes.

9

Transamerica Life Insurance Company

Statements of Cash Flow – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2012			2011			2010
Operating activities
Premiums collected, net of reinsurance	$	11,814,188		$	9,977,873		$	9,222,197
Net investment income received		2,671,763			2,807,544			2,985,106
Miscellaneous income (expense)		(976,256	)		1,162,966			569,910
Benefit and loss related payments		(8,664,812	)		(9,577,187	)		(9,022,576	)
Net transfers to separate accounts		(4,796,312	)		(4,563,220	)		(1,709,930	)
Commissions, expenses paid and aggregate write-ins for deductions		(278,351	)		(332,606	)		(2,756,812	)
Dividends paid to policyholders		(9,263	)		(9,884	)		(10,559	)
Federal and foreign income taxes recovered (paid)		188,989			92,471			(113,355	)
Net cash used in operating activities		(50,054	)		(442,043	)		(836,019	)
Investing activities
Proceeds from investments sold, matured or repaid:
Bonds		10,121,509			16,891,112			24,609,623
Common stocks		52,538			168,476			167,903
Preferred stocks		59,805			63,880			143,250
Mortgage loans		1,468,644			1,466,463			1,270,379
Real estate and properties held for sale		19,355			26,978			1,316
Other invested assets		486,960			528,027			693,425
Receivable for securities		24,450			13,693			(66,950	)
Securities lending reinvested collateral assets		1,360,086			436,576			—
Miscellaneous proceeds		27,906			321,467			112,803
Total investment proceeds		13,621,253			19,916,672			26,931,749
Costs of investments acquired:
Bonds		(6,763,489	)		(9,541,749	)		(23,107,917	)
Common stocks		(59,779	)		(292,401	)		(96,764	)
Preferred stocks		(25,851	)		(60,610	)		(112,885	)
Mortgage loans		(373,806	)		(191,262	)		(38,062	)
Real estate and properties held for sale		(2,894	)		(1,343	)		(350	)
Other invested assets		(251,237	)		(382,939	)		(480,709	)
Securities lending reinvested collateral assets		—			—			(3,956,880	)
Miscellaneous applications		(509,843	)		(2,145	)		(227,105	)
Total cost of investments acquired		(7,986,899	)		(10,472,449	)		(28,020,672	)
Net decrease in policy loans		18,890			18,994			13,279
Net cost of investments acquired		(7,968,009	)		(10,453,455	)		(28,007,393	)
Net cash provided by (used in) investing activities		5,653,244			9,463,217			(1,075,644	)

10

Transamerica Life Insurance Company

Statements of Cash Flow – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2012			2011			2010
Financing and miscellaneous activities
Net withdrawals on deposit-type contract funds and other liabilities without life or disability contingencies	$	(825,256	)	$	(1,726,008	)	$	(1,839,672	)
Borrowed funds		85,269			—			—
Funds held under reinsurance treaties with unauthorized reinsurers		(2,057,558	)		(5,531,199	)		(892,010	)
Dividends paid to stockholders		(300,000	)		—			(1,400,000	)
Capital contribution received		—			200,000			—
Receivable from parent, subsidiaries and affiliates		102,917			94,676			(61,088	)
Payable to parent, subsidiaries and affiliates		(235,867	)		(233,864	)		206,555
Payable for securities lending		(1,360,086	)		(436,576	)		3,956,880
Other cash provided (used)		257,041			155,168			(398,230	)
Net cash used in financing and miscellaneous activities		(4,333,540	)		(7,477,803	)		(427,565	)
Net increase (decrease) in cash, cash equivalents and short-term investments		1,269,650			1,543,371			(2,339,228	)
Cash, cash equivalents and short-term investments:
Beginning of year		3,116,452			1,573,081			3,912,309
End of year	$	4,386,102		$	3,116,452		$	1,573,081

See accompanying notes.

11

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

December 31, 2012

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).

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:

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 earnings 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.

12

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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 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. An other-than-temporary impairment is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security.

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.

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 high credit quality securities are adjusted, the retrospective method is used. 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.

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, and the change in fair value for cash

13

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

flow hedges is credited or charged directly to a separate component of OCI rather than to income as required for fair value hedges, and an embedded derivative within a contract that is not clearly and closely related to the economic characteristics and risk of the host contract is accounted for separately from the host contract and valued and reported at fair value.

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.

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.

14

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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.

Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred. Under GAAP, incremental costs directly related to the successful acquisition of 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.

15

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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.

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: The Company computes deferred income taxes in accordance with Statement of Statutory Accounting Principle (SSAP) No. 101, Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10. Under SSAP No. 101, admitted adjusted 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 amount of adjusted gross deferred income tax assets expected to be realized within three years limited to an amount that is no greater than 15% of current period’s adjusted statutory capital and surplus, plus 3) the amount of remaining adjusted 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) and reversal patterns of the deferred tax assets and liabilities. The remaining adjusted 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.

16

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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: 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. 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.

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.

17

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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.

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.

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. The Company considers relevant facts and circumstances in evaluating whether the impairment is other-than-temporary including: (1) the probability of the Company collecting all amounts due according to the contractual terms of the security in effect at the date of acquisition; (2) the Company’s decision to sell a security prior to its maturity at an amount below its carrying amount; and (3) the Company’s ability to hold a structured security for a period of time to allow for recovery of the value to its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes are monitored. Non-structured securities in unrealized loss positions that are considered other-than-temporary are written down to fair value. 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. 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 determined to be other-than-temporarily impaired.

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.

Common stocks of unaffiliated companies, which include shares of mutual funds, are reported at fair value and the related net unrealized capital gains or losses are reported in unassigned surplus along with any adjustment for federal income taxes.

18

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

If the Company determines that a decline in the fair value of a common stock or a preferred stock is other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the statement of operations. The Company considers the following factors in determining whether a decline in value is other-than-temporary: (a) the financial condition and prospects of the issuer; (b) whether or not the Company has made a decision to sell the investment; and (c) the length of time and extent to which the value has been below cost.

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.

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, 2012 and 2011 was $49,416 and $27,673, 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 classifies as held for sale is measured at lower of carrying amount or fair value less cost to sell. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties. The Company recognizes an impairment loss if the Company determines that the carrying amount of the real estate is not recoverable and exceeds its fair value. The Company deems that the carrying amount of the asset is not recoverable if the carrying amount exceeds the sum of undiscounted cash flows expected to result from the use and disposition. The impairment loss is measured as the amount by which the asset’s carrying value exceeds its fair value.

19

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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. For a decline in the fair value of an investment in a joint venture or limited partnership which is determined to be other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the statement of operations. The Company considers an impairment to have occurred if it is probable that the Company will be unable to recover the carrying amount of the investment or if there is evidence indicating inability of the investee to sustain earnings which would justify the carrying amount of the investment.

Investments in Low Income Housing Tax Credit (LIHTC) properties are valued at amortized cost. Tax credits are recognized in operations in the tax reporting year in which the tax credit is utilized by the Company.

Other “admitted assets” are valued principally at cost, as required or permitted by Iowa Insurance Laws.

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 investment income when payment exceeds 90 days past due. At December 31, 2012 and 2011, the Company excluded investment income due and accrued of $281 and $562, respectively, with respect to such practices.

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.

20

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Derivative Instruments

Overview: The Company may use various derivative instruments (options, caps, floors, swaps, foreign currency forwards and futures) to manage risks related to its ongoing business operations. On the transaction date of the derivative instrument, the Company designates the derivative as either (A) hedging (fair value, foreign currency fair value, cash flow, foreign currency cash flow, forecasted transactions or net investment in a foreign operation), (B) replication, (C) income generation or (D) held for other investment/risk management activities, which do not qualify for hedge accounting under SSAP No. 86, Accounting for Derivative Instruments and Hedging Activities.

Derivative instruments used in hedging relationships are accounted for on a basis that is consistent with the hedged item (amortized cost or fair value). Derivative instruments used in replication relationships are accounted for on a basis that is consistent with the cash instrument and the replicated asset (amortized cost or fair value). Derivative instruments used in income generation relationships are accounted for on a basis that is consistent with the associated covered asset or underlying interest to which the derivative indicates (amortized cost or fair value). Derivative instruments held for other investment/risk management activities receive fair value accounting.

Derivative instruments are subject to market risk, which is the possibility that future changes in market prices may make the instruments less valuable. The Company uses derivatives as hedges, consequently, when the value of the derivative changes, the value of a corresponding hedged asset or liability will move in the opposite direction. Market risk is a consideration when changes in the value of the derivative and the hedged item do not completely offset (correlation or basis risk) which is mitigated by active measuring and monitoring.

The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial instruments, but it does not expect any counterparties to fail to meet their obligations given their high credit rating of ‘A’ or better. The credit exposure of interest rate swaps and currency swaps is represented by the fair value of contracts, aggregated at a counterparty level, with a positive fair value at the reporting date. The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets on the Company’s behalf. The posted amount is equal to the difference between the net positive fair value of the contracts and an agreed upon threshold that is based on the credit rating of the counterparty. Inversely, if the net fair value of all contracts with this counterparty is negative, then the Company is required to post assets instead.

21

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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 at each due date. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on 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 underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

Interest rate basis swaps are used in the overall asset/liability management process to modify the interest rate characteristics of the underlying liability to mitigate the basis risk of assets and liabilities resetting on different indices. These interest rate swaps generally provide for the exchange of the difference between a floating rate on one index to a floating rate of another index, based upon an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged at each due date. Swaps meeting hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on 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 underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

Cross currency swaps are utilized to mitigate risks when the Company holds foreign denominated assets or liabilities, therefore converting the asset or liability to a U.S. dollar (USD) denominated security. These cross currency swap agreements involve the exchange of two principal amounts in two different currencies at the prevailing currency rate at contract inception. During the life of the swap, the counterparties exchange fixed or floating rate interest payments in the swapped currencies. At maturity, the principal amounts are again swapped at a pre-determined rate of exchange. Each asset or liability is hedged individually where the terms of the swap must meet the terms of the hedged instrument. For swaps qualifying for hedge accounting, the premium or discount is amortized into income over the life of the contract, and the foreign currency translation adjustment is recorded as unrealized gain/loss in 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.

Total return swaps are used in the asset/liability management process to mitigate the risk created when the company has issued minimum guarantee insurance contracts linked to an index. These total return swaps generally provide for the exchange of the difference between fixed leg (tied to an equity or interest rate index) and floating leg (tied to LIBOR) amounts based on an underlying

22

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

notional amount (also tied to the underlying index). Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on 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 underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

Variance swaps are used in the asset/liability management process to mitigate the gamma risk created when the Company has issued minimum guarantee insurance contracts linked to an index. These variance swaps are similar to volatility options where the underlying index provides for the market value movements. Variance swaps do not accrue interest. Typically, no cash is exchanged at the outset of initiating the variance swap, and a single receipt or payment occurs at the maturity or termination of the contract. The variance swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

Futures contracts are used to hedge the liability risk associated when the Company issues products providing the customer a return based on various global equity market indices. Futures are marked to market on a daily basis whereby a cash payment is made or received by the Company. These payments are recognized as realized gains or losses in the financial statements.

Collars are used in the asset/liability management process to mitigate the residual risk created when the company has issued minimum guarantee insurance contracts linked to an index. These collars are similar to options where the underlying index provides for the market value movements. The collars do not accrue interest. Typically, no cash is exchanged at the onset, and a single receipt or payment occurs at the maturity or termination of the contract. Collars that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Collars that do not meet 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 (continued)

(Dollars in Thousands, Except per Share amounts)

Caps are used in the asset/liability management process to mitigate the interest rate risk created due to a rapidly rising interest rate environment. The caps are similar to options where the underlying interest rate index provides for the market value movements. The caps do not accrue interest until the interest rate environment exceeds the caps strike rate. Cash is exchanged at the onset, and a single receipt or payment occurs at the maturity or termination of the contract. Caps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Caps that do not meet hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

The Company may sell products with expected benefit payments extending beyond investment assets currently available in the market. Because assets will have to be purchased in the future to fund future liability cash flows, the Company is exposed to the risk of future investments made at lower yields than what is assumed at the time of pricing. Forward-starting interest rate swaps are utilized to lock-in the current forward rate. The accrual of income begins at the forward date, rather than at the inception date. These forward-starting swaps meet hedge accounting rules and are carried at cost in the financial statements. Gains and losses realized upon termination of the forward-starting swap are deferred and used to adjust the basis of the asset purchased in the hedged forecasted period. The basis adjustment is then amortized into income as a yield adjustment to the asset over its life.

The Company issues fixed liabilities that have a guaranteed minimum crediting rate. The Company uses receiver swaption, whereby the swaption is designed to generate cash flows to offset lower yields on assets during a low interest rate environment. The Company pays a single premium at the beginning of the contract that is amortized throughout the life of the swaption. These swaptions are carried at fair value with fair value adjustments recorded in unassigned surplus.

The Company invests in domestic corporate debt securities denominated in U.S. dollars. If the issuers of these debt obligations fail to make timely payments, the value of the investment declines materially. The Company manages credit default risk through the purchase of credit default swaps. As the buyer of credit default protection, the Company will pay a premium to an approved counterparty in exchange for a contingent payment should a defined credit event occur with respect to the underlying reference entity or asset. Typically, the periodic premium or fee is expressed in basis points per notional. Generally, the premium payment for default protection is made periodically, although it may be paid as an up-front fee for short dated transactions. Should a credit event occur, the Company may be required to deliver the reference asset to the counterparty for par. Alternatively, settlement may be in cash. These credit default swaps are carried on the balance sheet at amortized cost. Premium payments made by the Company are recognized as investment expense. If the Company is unable to prove hedge effectiveness, the credit default swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

24

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

A replication transaction is a derivative transaction entered into in conjunction with a cash instrument to reproduce the investment characteristics of an otherwise permissible investment. The Company replicates investment grade corporate bonds or sovereign debt by combining a highly rated security as a cash component with a credit default swap which, in effect, converts the high quality asset into an investment grade corporate asset or a sovereign debt. 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 U.S. Treasury cash component with a forward starting swap which, in effect, converts a fixed U.S. Treasury into a 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 previously entered into some credit default swaps linked to a collateralized debt obligation (CDO) structure as a result of market events on a liquidity facility it had entered. Under this transaction, the Company received a fee in exchange for providing credit protection if the underlying CDO structure incurred losses greater than its supporting collateral. The fee was recorded in investment income. These swaps were marked to fair value in the balance sheet and the fair value adjustment was recorded in unassigned surplus. This derivative structure was terminated in December 2012.

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 (continued)

(Dollars in Thousands, Except per Share amounts)

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 $9,341,436, $9,381,447 and $6,368,599 in 2012, 2011 and 2010, respectively. In addition, the Company received $603,433, $494,516 and $380,170 in 2012, 2011 and 2010, 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 date of death.

The aggregate policy reserves for life insurance policies are based principally upon the 1941, 1958, 1980 and 2001 Commissioner’s 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 Commissioner’s Reserve Valuation Methods. Reserves for universal life policies are based on account balances adjusted for the Commissioner’s 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.

Deferred annuity reserves are calculated according to the Commissioner’s Annuity Reserve Valuation Method including excess interest reserves to cover situations where the future interest guarantees plus the decrease in surrender charges are in excess of the maximum valuation rates of interest. Reserves for immediate annuities and supplementary contracts with and without life contingencies are equal to the present value of future payments assuming interest rates ranging from 2.00 to 11.25 percent and mortality rates, where appropriate, from a variety of tables.

26

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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 Commissioner’s 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 2012, the Company reported a decrease in reserves, net of reinsurance, on account of a change in valuation basis of $1,381 due to changing from the 1980 CSO mortality table to the minimum valuation standard of the 2001 CSO mortality table for a block of joint life universal life with secondary guarantee policies. Partially offsetting this decrease was a $408 increase in reserves on account of a change in valuation basis due to coding in the reserve valuation system reserves which had been held constant since 2008 for paid-up additions on a block of participating policies. The net decrease in reserves of $973 due to the changes in valuation bases has been credited directly to unassigned surplus.

During 2010, the Company reported a decrease in reserves, net of reinsurance, 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 single premium group annuity (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 (continued)

(Dollars in Thousands, Except per Share amounts)

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.

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.

These municipal repurchase agreements require 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.

28

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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.

Activity in the liability for unpaid claims and related processing costs net of reinsurance is summarized as follows:

	Unpaid Claims Liability Beginning of Year		Claims Incurred		Claims Paid		Unpaid Claims Liability End of Year
Year ended December 31, 2012
2012	$	—	$	523,543	$	166,571	$	356,972
2011 and prior		943,279		51,495		335,510		659,264
		943,279	$	575,038	$	502,081		1,016,236
Active life reserve		2,740,356						2,831,417
Total accident and health reserves	$	3,683,635					$	3,847,653

	Unpaid Claims Liability Beginning of Year		Claims Incurred			Claims Paid		Unpaid Claims Liability End of Year
Year ended December 31, 2011
2011	$	—	$	517,711		$	163,597	$	354,114
2010 and prior		948,808		(15,043	)		344,600		589,165
		948,808	$	502,668		$	508,197		943,279
Active life reserve		2,680,895							2,740,356
Total accident and health reserves	$	3,629,703						$	3,683,635

The Company’s unpaid claims reserve was increased (decreased) by $51,495 and $(15,043) for the years ended December 31, 2012 and 2011, respectively, for health claims that occurred prior to those balance sheet dates. The change in 2012 and 2011 resulted primarily from variances in the estimated frequency of claims and claim severity.

29

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The balance in the liability for unpaid accident and health claim adjustment expenses as of December 31, 2012 and 2011 was $26,289 and $26,608, respectively. The Company incurred $13,288 and paid $13,608 of claim adjustment expenses in the current year, of which $10,113 of the paid amount was attributable to insured or covered events of prior years. The Company incurred $10,918 and paid $9,557 of claim adjustment expenses during 2011, of which $6,748 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 2012 or 2011.

Reinsurance

Coinsurance premiums, commissions, expense reimbursements and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies and the terms of the reinsurance contracts. Gains associated with reinsurance of in force blocks of business are included in unassigned surplus and amortized into income as earnings emerge on the reinsured block of business. Premiums ceded and recoverable losses have been reported as a reduction of premium income and benefits, respectively. Policy liabilities and accruals are reported in the accompanying financial statements net of reinsurance ceded.

Stock Option Plan, Long-Term Incentive Compensation and Stock Appreciation Rights Plans

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, Stock Options and Stock Purchase Plans, 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 $19,754, $9,158 and $3,205 for the years ended December 31, 2012, 2011 and 2010, respectively.

Recent Accounting Pronouncements

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 86 to require disclosure of embedded credit derivatives within a financial instrument that expose the holder to the possibility of making future payments, and adopted guidance from Accounting Standards Update (ASU) 2010-11, Derivatives and Hedging – Scope Exception Related to Embedded Credit Derivatives, to clarify that seller credit derivative disclosures do not apply to embedded derivative features related to the transfer of credit risk that is only in the form of subordination of one financial instrument to another. The adoption of these revisions had no impact to the Company’s results of operations or financial position.

30

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 86 to move one aspect of the criteria for a hedged forecasted transaction and incorporate it as criteria for a fair value hedge. The adoption of this revision had no impact to the Company’s results of operations or financial position.

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 27, Disclosure of Information about Financial Instruments with Off-Balance-Sheet Risk, Financial Instruments with Concentrations of Credit Risk and Disclosures about Fair Value of Financial Instruments, which clarifies that embedded derivatives, which are not separately recognized as derivatives under statutory accounting, are included in the disclosures of financial instruments with off-balance-sheet risk. The adoption of this revision had no impact to the Company’s results of operations or financial position.

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 1, Disclosures of Accounting Policies, Risks and Uncertainties and Other Disclosures. These revisions require reference to the accounting policy and procedure footnote that describes permitted or prescribed practices when an individual note is impacted by such practices. The adoption of this requirement had no impact to the Company’s results of operation or financial position, but did require additional disclosures. See Note 8 Policy and Contract Attributes for further details.

Effective January 1, 2012, the Company adopted revisions to SSAP No. 100, Fair Value Measurements (SSAP No. 100). These revisions require new disclosures of fair value hierarchy and the method used to obtain the fair value measurement, a new footnote that summarizes hierarchy levels by type of financial instrument and gross presentation of purchases, sales, issues and settlements within the reconciliation for fair value measurements categorized within Level 3 of the hierarchy. The adoption of these revisions had no impact to the Company’s results of operations or financial position, but did require additional disclosures. See Note 4 Fair Values of Financial Instruments for further details.

Effective January 1, 2012, the Company began computing current and deferred income taxes in accordance with SSAP No. 101. This statement established statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. The adoption of this statement resulted in the transfer of $432,568 from Aggregate Write-Ins for Other than Special Surplus Funds to Unassigned Funds and updates to the Company’s income tax disclosures. See Note 7 Income Taxes for further details.

For the years ended December 31, 2011 and 2010, the Company adopted SSAP No. 10R, Income Taxes – Revised, A Temporary Replacement of SSAP No. 10 (SSAP No. 10R). This statement established statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. The SSAP temporarily superseded SSAP No. 10, Income

31

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Taxes. SSAP No. 10R allowed an entity to elect to admit additional deferred tax assets (DTAs) utilizing a three year loss carryback provision, plus the lesser of a look-forward of three years on gross DTAs expected to be realized or 15% of statutory capital and surplus if the entity’s risk-based capital is above the 250% risk-based capital level where an action level could occur as a result of a trend test utilizing the old SSAP No. 10 provisions to calculate the DTA. Prior to the adoption of SSAP No. 10R, the admitted DTA was calculated by taking into consideration a one year loss carryback and look-forward on gross DTAs that can be expected to be realized and a 10% capital and surplus limit on the admitted amount of the DTA. The Company elected to admit additional deferred tax assets pursuant to SSAP No. 10R and as a result, the cumulative effect of the adoption of this standard was the difference between the calculation of the admitted DTA per SSAP No.10R and the old SSAP No. 10 methodology at December 31, 2011 and 2010. This change in accounting principle increased surplus by a net amount of $432,568 and $554,923, respectively, at December 31, 2011 and 2010, which has been recorded within the statements of changes in capital and surplus.

Effective December 31, 2011, the Company adopted SSAP No. 5R, Liabilities, Contingencies and Impairments of Assets – Revised. The revisions require the Company to recognize a liability equal to the greater of (a) the fair value of the guarantee at its inception, even if the likelihood of payment under the guarantee is remote or (b) the contingent liability amount required to be recognized if it is probable that a liability has been incurred at the financial statement date and the amount of loss can reasonably be determined. While this guidance does not exclude guarantees issued as intercompany transactions or between related parties from the initial liability recognition requirement, there are a couple exceptions. Guarantees made to/or on behalf of a wholly-owned subsidiary and related party guarantees that are considered “unlimited” (for example, in response to a rating agency’s requirement to provide a commitment to support) are exempt from the initial liability recognition. Additional disclosures are also required under this new guidance for all guarantees, whether or not they meet the criteria for initial liability recognition. The adoption of this new accounting principle had no material impact to the Company’s results of operations or financial position, but did require additional disclosures regarding these guarantees. See Note 13 on Commitments and Contingencies for further details.

Effective December 31, 2011, the Company adopted non-substantive revisions to SSAP No. 100 to incorporate the provisions of ASU 2010-06, Improving Disclosures about Fair Value Measurements. This revision required a new disclosure for assets and liabilities for which fair value is not measured and reported in the statement of financial position but is otherwise disclosed. The adoption of these revisions had no impact to the Company’s results of operations or financial position. See Note 4 for further details.

Effective December 31, 2011, the Company adopted non-substantive changes to SSAP No. 32, Investments in Preferred Stock (including investments in preferred stock of subsidiary, controlled, or affiliated entities). The amendment was made to clarify the definition of preferred

32

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

stock. Under the revised SSAP No. 32, a preferred stock is defined as any class or series of shares the holders of which have any preference, either as to the payment of dividends or distribution of assets on liquidation, over the holder of common stock [as defined in SSAP No. 30, Investments in Common Stock (excluding investments in common stock of subsidiary, controlled, or affiliated entities)] issued by an entity. This revised definition had no impact to the Company.

Effective January 1, 2011, the Company adopted SSAP No. 35R, Guaranty Fund and Other Assessments – Revised. This statement modified the conditions required for recognizing a liability for insurance-related assessments and required additional disclosures. See Note 13 for disclosures related to guaranty fund assessments. The adoption of this accounting principle had no financial impact to the Company.

Effective January 1, 2011, the Company adopted revisions 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 preformed when SSAP No. 43R securities are sold (not just as a result of impairment). These changes were applied on a prospective basis and had no financial impact to the Company upon adoption.

Effective January 1, 2011, the Company adopted revisions to SSAP No. 43R to clarify the definitions of loan-backed and structured securities. The clarified guidance was applied prospectively and had no financial impact to the Company upon adoption.

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. The amendments 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 January 1, 2013, the Company will adopt SSAP No. 92, Postretirement Benefits Other Than Pensions, A Replacement of SSAP No. 14 and SSAP No. 102, Accounting for Pensions, A Replacement of SSAP No. 89. This guidance impacts accounting for defined benefit pension plans or other postretirement plans, along with related disclosures. SSAP No. 102 requires recognition of the funded status of the plan based on the projected benefit obligation instead of

33

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

the accumulated benefit obligation as under SSAP No. 89. In addition, SSAP No. 92 and SSAP No. 102 require consideration of non-vested participants. The adoption of these standards will not impact the Company’s results of operations, financial position or disclosures as the Company does not sponsor the pension plan and is not directly liable under the plan. See Note 11 for further discussion of the Company’s pension plan and other postretirement plans as sponsored by Aegon.

Effective January 1, 2013, the Company will adopt SSAP No. 103, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities which adopts with modifications the guidance in ASU 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets and supersedes SSAP no. 91R, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. The impact of the adoption of this standard is expected to be immaterial to the Company.

Effective January 1, 2013, the Company will adopt non-substantive revisions to SSAP No. 36, Troubled Debt Restructuring. These revisions adopt guidance from ASU 2011-02, Receivables – A Creditors’ Determination of Whether a Restructuring is a Troubled Debt Restructuring, which clarifies what constitutes a troubled debt restructuring and adopts with modification troubled debt restructuring disclosures for creditors from ASU 2010-20: Receivables (Topic 310), Disclosures About the Credit Quality of Financing Receivables and the Allowance for Credit Losses. The adoption of this revision is not expected to impact the financial position or results of operations of the Company.

Effective December 31, 2013, the Company will adopt revisions to SSAP No. 35R, Guaranty Fund and Other Assessments – Revised which incorporates subsequent event (Type II) disclosures for entities subject to Section 9010 of the Patient Protection and Affordable Care Act related to assessments payable. The adoption of this revision is not expected to impact the financial position or results of operations of the Company as revisions relate to disclosures only.

Reclassifications

Certain reclassifications have been made to the 2011 and 2010 financial statements to conform to the 2012 presentation.

During 2012, the Company changed the presentation of various reinsurance related balances. As a result of these changes, $91,236 was reclassified from Remittances and items not allocated to Other liabilities as of December 31, 2011. In addition, $807,484 and $237,399, respectively, was reclassified between the Net transfers to separate accounts line and the Surrender benefits line in the 2011 and 2010 Statements of Operations to conform to the 2012 presentation. Lastly, Reinsurance transaction – modco reserve adjustment on reinsurance assumed was presented as a separate line item in 2012. As a result of this change in presentation, $(218,566) and $(262,273), respectively, was reclassed between the Other expenses line and the Reinsurance transaction – modco reserve adjustment on reinsurance assumed line in the 2011 and 2010 Statements of Operations to conform to the 2012 presentation.

34

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

2. Prescribed and Permitted Statutory Accounting Practices

The financial statements of the Company are presented on the basis of accounting principles prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa. 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 State of Iowa has adopted a prescribed practice that differs from that found in the NAIC SAP related to the admission of a parental guarantee in the equity value calculation of TLIC Riverwood Reinsurance, Inc. (TRRI), a wholly owned subsidiary of the Company. As prescribed by Iowa Administrative Code 191-99.11(5), the Company is entitled to value its ownership in TRRI at a value equal to the audited statutory surplus of TRRI, which includes the parental guarantee provided by Aegon USA, LLC as an admissible asset, whereas SSAP No. 97 – Investments in Subsidiary, Controlled and Affiliated Entities, A Replacement of SSAP No. 88 would not allow the admissibility of such an asset.

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 foreign statutory equity, utilizing adjustments as outlined in SSAP No. 97.

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.

35

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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:

	2012			2011			2010
Net income (loss), State of Iowa basis	$	791,564		$	(2,459,266	)	$	417,679
State prescribed practice for parental guarantee		—			—			—
State prescribed practice for secondary guarantee reinsurance		—			—			—
State permitted practice for valuation of wholly-owned foreign life subsidiary		—			—			—
Net income (loss), NAIC SAP	$	791,564		$	(2,459,266	)	$	417,679
Statutory surplus, State of Iowa basis	$	5,470,563		$	5,121,642		$	4,298,124
State prescribed practice for parental guarantee		(724,720	)		(675,044	)		—
State prescribed practice for secondary guarantee reinsurance		(3,364,455	)		(3,149,987	)		(2,926,627	)
State permitted practice for valuation of wholly-owned foreign life subsidiary		42,539			19,129			19,656
Statutory surplus, NAIC SAP	$	1,423,927		$	1,315,740		$	1,391,153

During 2011, the Company entered into a retrocession reinsurance contract and subsequent novation agreements with respect to each of the unaffiliated retroceded reinsurance contracts. The retrocession reinsurance contract transferred the Company’s liabilities to SCOR SE (SCOR), a Societas Europaea organized under the laws of France, and subsequently facilitated the ultimate novation of third party retrocession reinsurance contracts in support of the exiting of the reinsurance operations. No additional net consideration was contemplated upon execution of the novation agreements. Therefore, the Company had the same net retained risk of zero both prior to and subsequent to the execution of the novations.

SSAP No. 61 defines novation agreements as one which extinguishes one entity’s liability and moves it to another entity, which is applicable under this situation. The retrocession agreement had all references to the Company removed and replaced with SCOR upon completion of the novations. SSAP No. 61 does not specifically address novation and releases related to retrocession agreements, however as both cedents and retrocessionaires in this situation are a

36

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

party to the agreement, the intent of the novation and release is consistent with the application for direct cedents application of the standard. Thus, the Company reported the novation and release similar to a novation, as outlined in paragraphs 53-56 of SSAP No. 61, with direct adjustments to the balance sheet.

3. Accounting Changes and Correction of Errors

Effective December 16, 2011, the Company released an IMR liability associated with the block of business ceded to an unaffiliated entity on a coinsurance basis. Since the portion of the block of business ceded did not represent more than one percent of the Company’s general account liabilities, the IMR liability should not have been released when the reinsurance transaction was effected. The error resulted in an understatement of the IMR liability in the amount of $8,889. This was corrected in 2012, and the Company reflected the impact of the correction as a change in unassigned surplus within the statement of changes in capital and surplus.

Effective August 9, 2011, the Company released an IMR liability associated with a block of business retroceded to an unaffiliated entity. The gain on the release of the IMR liability should have been deferred through unassigned surplus but was instead included in the statements of operations. The error resulted in an overstatement of net income in the amount of $33,567. This was corrected in 2012, and the Company reflected the impact of the correction as a change in unassigned surplus within the statement of changes in capital and surplus. The offsetting adjustment is to the change in surplus as a result of reinsurance line within the statements of operations. There was no net impact to surplus as a result of this correction.

During 2012, the Company discovered an error in the calculation of waiver of premium reserves for long term care business due to the use of inaccurate premiums waived data. The error resulted in an understatement of reserves of $20,341 as of December 31, 2011. This has been reported as a correction of an error in the statement of changes in capital and surplus.

4. Fair Values of Financial Instruments

The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Determination of fair value

The fair values of financial instruments are determined by management after taking into consideration several sources of data. When available, the Company uses quoted market prices in active markets to determine the fair value of its investments. The Company’s valuation policy utilizes a pricing hierarchy which dictates that publicly available prices are initially sought from

37

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

indices and third-party pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes. Lastly, securities are priced using internal cash flow modeling techniques. These valuation methodologies commonly use reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, and/or estimated cash flows.

To understand the valuation methodologies used by third-party pricing services, the Company reviews and monitors their applicable methodology documents. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, the Company performs in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate that the Company can corroborate detailed information such as assumptions, inputs and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.

Each month, the Company performs an analysis of the information obtained from indices, third-party services, and brokers to ensure that the information is reasonable and produces a reasonable estimate of fair value. The Company considers both qualitative and quantitative factors as part of this analysis, including but not limited to, recent transactional activity for similar securities, review of pricing statistics and trends, and consideration of recent relevant market events. Other controls and procedures over pricing received from indices, third-party pricing services, or brokers include validation checks such as exception reports which highlight significant price changes, stale prices or un-priced securities.

Fair value hierarchy

The Company’s financial assets and liabilities carried at fair value are classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100. 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.

38

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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

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

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

c) Inputs other than quoted market prices that are observable

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

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

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

Cash Equivalents and Short-Term Investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair values. Cash is not included in the below tables.

Short-Term Notes Receivable from Affiliates: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair value.

Bonds and Stocks: The NAIC allows insurance companies to report the fair value determined by the SVO or to determine the fair value by using a permitted valuation method. The fair values of bonds and stocks are reported or determined using the following pricing sources: indexes, third party pricing services, brokers, external fund managers and internal models.

Fair values for fixed maturity securities (including redeemable preferred stock) actively traded are determined from third-party pricing services, which are determined as discussed above in the description of level one and level two values within the fair value hierarchy. For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from third-party pricing services, or are based on non-binding broker quotes or internal models. In the case of private placements, fair values are estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments.

39

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Mortgage Loans on Real Estate: The fair values for mortgage loans on real estate are estimated utilizing discounted cash flow analyses, using interest rates reflective of current market conditions and the risk characteristics of the loans.

Other Invested Assets: The fair values for other invested assets, which include investments in surplus notes issued by other insurance companies and fixed or variable rate investments with underlying characteristics of bonds were determined primarily by using indexes, third party pricing services and internal models.

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. The estimated fair values of credit default swaps are based upon the pricing differential as of the balance sheet date for similar swap agreements.

Policy Loans: The fair value of policy loans is equal to the book value of the loan, which is stated at unpaid principal balance.

Securities Lending Reinvested Collateral: The cash collateral from securities lending is reinvested in various short-term and long-term debt instruments. The fair values of these investments are determined using the methods described above under Cash, Cash Equivalents and Short-Term Investments and Bonds and Stocks.

Receivable From/Payable to Parents, Subsidiaries and Affiliates: The carrying amount of receivable from/payable to affiliates approximates their fair value.

Separate Account Assets and Annuity Liabilities: The fair value of separate account assets are based on quoted market prices when available. When not available, they are valued in the same manner as general account assets as further described in this note. The fair value of separate account annuity liabilities is based on the account value for separate accounts business without guarantees. For separate accounts with guarantees, fair value is based on discounted cash flows.

Investment Contract Liabilities: Fair value for the Company’s liabilities under investment contracts, which include deferred annuities, GICs and funding agreements, are estimated using discounted cash flow calculations. For those liabilities that are short in duration, carrying amount approximates fair value.

Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying balance sheets approximate their fair values.

40

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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.

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 sheets.

The Company accounts for derivatives that receive and pass hedge accounting in the same manner as the underlying hedged instrument. If that instrument is held at amortized cost, then the derivative is also held at amortized cost and therefore it is not included in the following disclosures as it is not carried at fair value on the balance sheets.

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.

41

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The following tables set forth a comparison of the estimated fair values and carrying amounts of the Company’s financial instruments, including those not measured at fair value in the balance sheets, as of December 31, 2012 and 2011, respectively:

	December 31
	2012
	Estimated Fair Value		Admitted Assets		(Level 1)		(Level 2)		(Level 3)		Not Practicable (Carrying Value)
Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	3,899,465	$	3,899,465	$	—	$	3,899,465	$	—	$	—
Short-term notes receivable from affiliates		411,200		411,200		—		411,200		—		—
Bonds		40,790,267		36,721,992		4,064,778		35,427,671		1,297,818		—
Preferred stocks, other than affiliates		111,258		111,471		—		101,853		9,405		—
Common stocks, other than affiliates		218,026		218,026		68,173		257		149,596		—
Mortgage loans on real estate		6,343,771		5,756,749		—		—		6,343,771		—
Other invested assets		172,494		157,176		—		159,145		13,349		—
Options		205,942		205,942		—		205,942		—		—
Interest rate swaps		1,667,275		298,750		—		1,648,192		19,083		—
Currency swaps		64,632		40,080		—		64,632		—		—
Credit default swaps		24,874		12,812		—		24,874		—		—
Policy loans		708,794		708,794		—		708,794		—		—
Securities lending reinvested collateral		2,159,184		2,160,218		—		2,159,184		—		—
Receivable from parent, subsidiaries and affiliates		51,246		51,246		—		51,246		—		—
Separate account assets		48,756,861		48,684,223		43,059,585		5,693,280		3,996		—
Liabilities
Investment contract liabilities		16,244,099		15,014,811		—		1,107,623		15,136,476		—
Options		49,393		49,393		—		49,393		—		—
Interest rate swaps		406,498		212,460		—		367,059		39,439		—
Currency swaps		58,388		68,895		—		58,388		—		—
Credit default swaps		7,285		26,435		—		7,285		—		—
Payable to parent, subsidiaries and affiliates		7,245		7,245		—		7,245		—		—
Separate account annuity liabilities		40,655,573		40,658,385		—		40,509,576		145,997		—
Surplus notes		168,588		150,000		—		—		168,588		—

42

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

	December 31
	2011
	Carrying Amount		Estimated Fair Value
Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	2,427,211	$	2,427,211
Short-term notes receivable from affiliates		185,100		185,100
Bonds		39,785,207		41,910,771
Preferred stocks, other than affiliates		138,596		149,539
Common stocks, other than affiliates		229,973		229,973
Mortgage loans on real estate		6,830,030		7,364,129
Other invested assets		159,011		165,273
Interest rate swaps		233,642		1,950,058
Currency swaps		8,239		59,431
Credit default swaps		6,603		5,389
Policy loans		727,684		727,684
Securities lending reinvested collateral		3,520,304		3,517,849
Receivable from parent, subsidiaries and affiliates		154,163		154,163
Separate account assets		41,473,473		41,473,473
Liabilities
Investment contract liabilities		16,415,861		17,090,179
Interest rate swaps		46,960		456,325
Currency swaps		40,536		75,759
Credit default swaps		19,739		27,931
Payable to parent, subsidiaries and affiliates		243,112		243,112
Separate account annuity liabilities		33,308,199		33,311,319
Surplus notes		150,000		153,819

43

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The following tables provide information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2012 and 2011:

	2012
	Level 1		Level 2		Level 3			Total
Assets:
Bonds
Industrial and miscellaneous	$	—	$	103,093	$	8,147		$	111,240
Hybrid securities		—		4,287		—			4,287
Total bonds		—		107,380		8,147			115,527
Common stock
Mutual funds		250		69		—			319
Industrial and miscellaneous		67,923		188		149,596			217,707
Total common stock		68,173		257		149,596			218,026
Short-term investments
Government		—		82,823		—			82,823
Industrial and miscellaneous		—		3,284,316		—			3,284,316
Mutual funds		—		484,005		—			484,005
Intercompany notes receivable		—		411,200		—			411,200
Sweep accounts		—		48,320		—			48,320
Total short-term investments		—		4,310,664		—			4,310,664
Derivative assets		—		288,874		(20,355	)		268,519
Separate account assets		43,036,673		4,980,375		807			48,017,855
Total assets	$	43,104,846	$	9,687,550	$	138,195		$	52,930,591
Liabilities:
Derivative liabilities	$	—	$	66,150	$	—		$	66,150
Separate account liabilities		4,653		3,829		—			8,482
Total liabilities	$	4,653	$	69,979	$	—		$	74,632

44

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

	2011
	Level 1		Level 2		Level 3		Total
Assets:
Bonds
Government	$	—	$	63	$	—	$	63
Industrial and miscellaneous		—		193,110		32,248		225,358
Hybrid securities		—		3,570		—		3,570
Total bonds		—		196,743		32,248		228,991
Preferred stock
Industrial and miscellaneous		—		13,486		1,236		14,722
Total preferred stock		—		13,486		1,236		14,722
Common stock
Mutual funds		357		68		—		425
Industrial and miscellaneous		51,646		334		177,568		229,548
Total common stock		52,003		402		177,568		229,973
Short-term investments
Government		—		33,156		—		33,156
Industrial and miscellaneous		—		1,736,611		—		1,736,611
Mutual funds		—		615,179		—		615,179
Intercompany notes receivable		—		185,100		—		185,100
Sweep accounts		—		42,256		—		42,256
Total short-term investments		—		2,612,302		—		2,612,302
Derivative assets		—		170,617		2,153		172,770
Separate account assets		35,108,598		5,006,378		746,827		40,861,803
Total assets	$	35,160,601	$	7,999,928	$	960,032	$	44,120,561
Liabilities:
Derivative liabilities	$	—	$	19,648	$	11,786	$	31,434
Separate account liabilities		9,723		4,406		—		14,129
Total liabilities	$	9,723	$	24,054	$	11,786	$	45,563

Bonds classified in Level 2 are valued using inputs from third party pricing services or broker quotes. Level 3 measurements for bonds are primarily those valued using non-binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilize inputs that are not market observable.

Preferred stock in Level 3 is being internally calculated.

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 a result of restrictions that allow redemptions only by FHLB. In addition, the Company owns common stock being carried at book value and some warrants that are valued using broker quotes.

45

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Short-term investments are classified as Level 2 as they are carried at amortized cost, which approximates fair value.

Derivatives 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.

Separate account assets are valued and classified in the same way as general account assets (described above). For example, separate account assets in Level 3 are those valued using broker quotes or internal modeling which utilize unobservable inputs.

46

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

During 2012 and 2011, there were no transfers between Level 1 and 2, respectively.

The following tables summarize the changes in assets and liabilities classified in Level 3 for 2012 and 2011:

	Beginning Balance at January 1, 2012			Transfers in (Level 3)		Transfers out (Level 3)		Total Gains and (Losses) Included in Net income (a)			Total Gains and (Losses) Included in Surplus (b)
Bonds
RMBS	$	26,721		$	12,792	$	20,573	$	24		$	(6,115	)
Other		5,527			2,800		2,242		(535	)		393
Preferred stock		1,236			—		—		—			—
Common stock		177,568			333		470		(1,391	)		(1,239	)
Derivatives		(9,633	)		—		—		—			31,944
Separate account assets		746,827			—		8,196		(724,329	)		65
Total	$	948,246		$	15,925	$	31,481	$	(726,231	)	$	25,048
	Purchases			Issuances		Sales		Settlements			Ending Balance at December 31, 2012
Bonds
RMBS	$	—		$	—	$	—	$	10,657		$	2,192
Other		207			966		—		1,161			5,955
Preferred stock		—			—		1,236		—			—
Common stock		837			—		26,042		—			149,596
Derivatives		(32,793	)		—		—		9,873			(20,355	)
Separate account assets		—			—		9,994		3,566			807
Total	$	(31,749	)	$	966	$	37,272	$	25,257		$	138,195

47

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

	Beginning Balance at January 1, 2011			Transfers in (Level 3)		Transfers out (Level 3)		Total Gains and (Losses) Included in Net income (a)			Total Gains and (Losses) Included in Surplus (b)
Bonds
RMBS	$	51,719		$	16,364	$	24,461	$	(4,042	)	$	3,757
Other		7,638			1		870		(232	)		355
Preferred stock		1,236			—		—		—			—
Common stock		226,884			644		1,619		(206	)		(345	)
Derivatives		(4,600	)		—		—		—			(7,209	)
Separate account assets		793,212			33,755		26,894		(58,033	)		(538	)
Total	$	1,076,089		$	50,764	$	53,844	$	(62,513	)	$	(3,980	)
	Purchases			Issuances		Sales		Settlements			Ending Balance at December 31, 2011
Bonds
RMBS	$	—		$	11,637	$	—	$	28,253		$	26,721
Other		—			—		—		1,365			5,527
Preferred stock		—			—		—		—			1,236
Common stock		2,279			—		50,069		—			177,568
Derivatives		2,592			2,153		2,569		—			(9,633	)
Separate account assets		5,384			4,900		7		4,952			746,827
Total	$	10,255		$	18,690	$	52,645	$	34,570		$	948,246

(a) Recorded as a component of Net Realized Capital Gains/Losses on Investments in the Statements of Operations

(b) Recorded as a component of Change in Net Unrealized Capital Gains/Losses in the Statements of Changes in Capital and Surplus

The Company’s policy is to recognize transfers in and out of levels as of the beginning of the reporting period.

Transfers in for bonds were the result of securities being valued using vendor inputs as of December 31, 2011, subsequently changing to being valued using broker quotes during 2012. In addition, transfers in for bonds were the result of securities being carried at amortized cost at December 31, 2011 and 2010, subsequently changing to being carried at fair value during 2012 and 2011. Transfers in for bonds were also the result of securities being valued using vendor inputs as of December 31, 2011, subsequently changing to being valued using internal models during 2012. Also, transfers in for bonds were partly attributable to securities being valued using third party vendor inputs at December 31, 2010, subsequently changing to being valued using broker quotes which utilize unobservable inputs, thus causing the transfer into Level 3 during 2011.

48

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Transfers out for bonds were partly attributable to securities being valued using broker quotes which utilize unobservable inputs at December 31, 2011 and 2010, subsequently changing to being valued using third party vendor inputs, thus causing the transfer out of Level 3 during 2012 and 2011, respectively. In addition, transfers out for bonds were attributed to securities being carried at fair value at December 31, 2011 and 2010, subsequently changing to being carried at amortized cost during 2012 and 2011, respectively. Also, transfers out for bonds were the result of securities being valued using internal models at December 31, 2011, subsequently changing to being valued using vendor inputs during 2012.

Transfers in for common stock were attributed to securities being valued using third party vendor inputs at December 31, 2011, subsequently changing to being valued using broker quotes which utilize unobservable inputs, thus causing the transfer in during 2012. In addition, there were securities that were valued using broker quotes which utilize observable inputs, subsequently changing to being valued using broker quotes which utilize unobservable inputs during 2012. Additionally, transfers in for common stock were the result of securities being valued using index pricing at December 31, 2010, subsequently being valued using unobservable inputs during 2011.

Transfers out for common stock were attributed to securities being valued using a stale price at December 31, 2011, subsequently changing to being valued using third party vendor inputs, thus causing the transfer out of Level 3 during 2012. In addition, transfers out for common stock were attributed to securities being valued using broker quotes at December 31, 2011, subsequently changing to being valued using vendor inputs during 2012. Additionally, transfers out for common stock were the result of securities being valued using unobservable inputs at December 31, 2010, subsequently being valued using index pricing during 2011.

Transfers in for separate account bonds were attributable to securities being valued using third party vendor inputs at December 31, 2010, subsequently changing to being valued using broker quotes which utilize unobservable inputs during 2011.

Transfers out for separate account bonds were attributable to securities being valued using broker quotes which utilize unobservable inputs at December 31, 2011 and 2010, subsequently changing to being valued using third party vendor inputs, thus causing the transfer out of Level 3 during 2012 and 2011, respectively.

49

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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, 2012
Unaffiliated bonds:
United States Government and agencies	$	2,980,978	$	778,329	$	—	$	50	$	3,759,257
State, municipal and other government		802,196		104,712		8,884		324		897,700
Hybrid securities		499,556		14,971		101,545		1,522		411,460
Industrial and miscellaneous		21,604,497		3,425,875		36,414		17,759		24,976,199
Mortgage and other asset-backed securities		10,794,339		543,136		633,313		4,087		10,700,075
		36,681,566		4,867,023		780,156		23,742		40,744,691
Unaffiliated preferred stocks		111,471		9,909		8,786		1,336		111,258
	$	36,793,037	$	4,876,932	$	788,942	$	25,078	$	40,855,949

	Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses 12 Months or More		Gross Unrealized Losses less Than 12 Months		Estimated Fair Value
December 31, 2011
Unaffiliated bonds:
United States Government and agencies	$	3,035,812	$	815,740	$	21	$	82	$	3,851,449
State, municipal and other government		631,483		38,206		15,565		9,534		644,590
Hybrid securities		498,708		3,619		130,821		11,266		360,240
Industrial and miscellaneous		22,834,539		2,481,536		94,765		94,052		25,127,258
Mortgage and other asset-backed securities		12,721,746		372,752		1,151,251		66,826		11,876,421
		39,722,288		3,711,853		1,392,423		181,760		41,859,958
Unaffiliated preferred stocks		138,596		23,703		6,745		6,015		149,539
	$	39,860,884	$	3,735,556	$	1,399,168	$	187,775	$	42,009,497

At December 31, 2012 and 2011, 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 430 and 593 securities with a carrying amount of $4,671,096 and $6,503,336 and an unrealized loss of $788,942 and $1,399,168 with an average price of 83.1 and 78.5 (fair value/amortized cost). Of this portfolio, 52.0% and 58.7% were investment grade with associated unrealized losses of $289,823 and $544,964, respectively.

50

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2012 and 2011, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 231 and 568 securities with a carrying amount of $1,021,012 and $3,644,457 and an unrealized loss of $25,078 and $187,775 with an average price of 97.5 and 94.9 (fair value/amortized cost). Of this portfolio, 85.2% and 84.8% were investment grade with associated unrealized losses of $17,955 and $146,947, respectively.

At December 31, 2012 and 2011, respectively, for common stocks that have been in a continuous loss position for greater than or equal to twelve months, the Company held 3 and 2 securities with a cost of $10 and $2 and an unrealized loss of $9 and $1 with an average price of 7.2 and 50.6 (fair value/cost).

At December 31, 2012 and 2011, respectively, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 14 and 19 securities with a cost of $12,588 and $2,748 and an unrealized loss of $263 and $429 with an average price of 97.9 and 84.4 (fair value/cost).

The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2012 and 2011 is as follows:

	Losses 12 Months or More		Losses Less Than 12 Months		Total
December 31, 2012
Unaffiliated bonds:
United States Government and agencies	$	—	$	33,517	$	33,517
State, municipal and other government		63,124		6,233		69,357
Hybrid securities		213,598		4,892		218,490
Industrial and miscellaneous		440,974		711,538		1,152,512
Mortgage and other asset-backed securities		3,139,452		232,431		3,371,883
		3,857,148		988,611		4,845,759
Unaffiliated preferred stocks		25,005		7,324		32,329
Unaffiliated common stocks		1		12,325		12,326
	$	3,882,154	$	1,008,260	$	4,890,414

51

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

	Losses 12 Months or More		Losses Less Than 12 Months		Total
December 31, 2011
Unaffiliated bonds:
United States Government and agencies	$	646	$	20,862	$	21,508
State, municipal and other government		68,172		100,616		168,788
Hybrid securities		208,545		98,932		307,477
Industrial and miscellaneous		874,324		2,083,289		2,957,613
Mortgage and other asset-backed securities		3,943,571		1,114,649		5,058,220
		5,095,258		3,418,348		8,513,606
Unaffiliated preferred stocks		8,909		38,333		47,242
Unaffiliated common stocks		1		2,318		2,319
	$	5,104,168	$	3,458,999	$	8,563,167

The carrying amount and estimated fair value of bonds at December 31, 2012, 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	$	1,240,506	$	1,262,341
Due after one year through five years		7,100,718		7,770,622
Due after five years through ten years		6,139,707		6,896,709
Due after ten years		11,406,296		14,114,944
		25,887,227		30,044,616
Mortgage and other asset-backed securities		10,794,339		10,700,075
	$	36,681,566	$	40,744,691

For impairment policies related to non-structured and structured securities, refer to Note 1 under Investments.

Banking

At December 31, 2012, the Company’s banking sector portfolio had investments in an unrealized loss position which had a fair value of $576,329 and a carrying value of $748,907, resulting in a gross unrealized loss of $172,578. 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 in the sector due to the Sovereign debt crisis in Europe as well as residual impact from both the U.S. financial crisis and concerns over the U.S. Fiscal Cliff.

52

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

As a whole, the sub-sector improved in the second half of 2012, following a volatile first half. Decisive steps by European Union (EU) leaders and world central banks to stabilize the euro and improve funding conditions calmed investor concerns that a euro breakup was imminent. Credit spreads continue to reflect some uncertainty over new efforts by regulators to impose “burden sharing” on creditors in order to quickly stabilize or wind up troubled banks. While these measures have made securities more volatile in the near-term, new, more stringent global legislation on bank capital and liquidity requirements is intended to reduce overall risk in the sector going forward and decouple troubled banks from the Sovereign. Furthermore, central banks appear committed to providing liquidity to the market, while 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 deeply subordinated securities issued by non-U.S. Banks are broadly referred to as capital securities which can be categorized as Tier 1 or Upper Tier 2. Capital securities categorized as “Tier 1” are typically perpetual with a non-cumulative coupon that can be deferred under certain conditions. Capital securities categorized as “Upper Tier 2” are generally perpetual with a cumulative coupon that is deferrable under certain conditions. The deeply subordinated securities issued by U.S. Banks can be categorized as trust preferred or hybrid. Capital securities categorized as trust preferred typically have an original maturity of 30 years with call features after 10 years with a cumulative coupon that is deferrable under certain conditions. Capital securities categorized as hybrid typically have an original maturity of more than 30 years, may be perpetual and are generally subordinate to traditional trust preferred securities. 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, 2012.

Subprime Mortgages

At December 31, 2012, the Company’s asset-backed securities (ABS) subprime mortgages portfolio had investments in an unrealized loss position which had a fair value of $593,142 and a carrying value of $675,568, resulting in a gross unrealized loss of $82,426. The unrealized loss in the sector is primarily a result of the housing downturn the United States has experienced since 2007. Even with the stabilization over the past two years, fundamentals in ABS subprime mortgages 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.

53

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company does not currently invest in or originate whole loan residential mortgages. The Company categorizes ABS 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 ABS 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.

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 updated and are reviewed quarterly. Model output is generated under base and 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 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 specialist to determine whether or not the 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 tranche or holding and does have the intent and ability to hold the security, the security is impaired to discounted cash flows. 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, 2012.

54

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Residential Mortgage-Backed Securities (RMBS) Sector

At December 31, 2012, the Company’s RMBS sector portfolio had investments in an unrealized loss position which had a fair value of $1,461,372 and a carrying value of $1,821,161, resulting in a gross unrealized loss of $359,789. RMBS are securitizations of underlying pools of residential mortgages on real estate. The underlying residential mortgages have varying credit ratings and are pooled together and sold in tranches. The Company’s RMBS includes prime jumbo pass-throughs and collateralized mortgage obligations (CMOs), Alt-A RMBS, negative amortization RMBS, government sponsored enterprise (GSE) guaranteed pass-throughs and reverse mortgage RMBS. The unrealized loss in the sector is primarily a result of the housing downturn the United States has experienced since 2007. Even with the stabilization over the past two years, 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.

All RMBS securities 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 updated and reviewed quarterly. Model output is generated under base and 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 the 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.

55

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

If cash flow models indicate a credit event will impact future cash flows and the Company does not have the intent to sell the tranche or holding and does have the intent and ability to hold the security, the security is impaired to discounted cash flows. 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, 2012.

There were no loan-backed securities with a recognized other-than-temporary impairment (OTTI) due to intent to sell or lack of intent and ability to hold during the year ended December 31, 2012. 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		OTTI Recognized in Loss
	Basis Before OTTI		Interest		Non-interest		Fair Value
Year Ended December 31, 2011
OTTI recognized 1st quarter:
Intent to sell	$	4,977	$	660	$	—	$	4,317
Total 1st quarter OTTI on loan-backed securities		4,977		660		—		4,317
OTTI recognized 3rd quarter:
Intent to sell		160,578		5,973		—		154,605
Total 3rd quarter OTTI on loan-backed securities		160,578		5,973		—		154,605
Aggregate total	$	165,555	$	6,633	$	—	$	158,922

	Amortized Cost		OTTI Recognized in Loss
	Basis Before OTTI		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		—
Total 2nd quarter OTTI on loan-backed securities		17,322		301		6		17,015
Aggregate total	$	21,701	$	1,274	$	6	$	20,421

56

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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, 2012
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	357,700	$	23,038	$	334,662	$	210,662
2nd quarter present value of cash flows expected to be less than the amortized cost basis		515,449		23,147		492,302		338,584
3rd quarter present value of cash flows expected to be less than the amortized cost basis		515,274		25,476		489,798		348,834
4th quarter present value of cash flows expected to be less than the amortized cost basis		154,272		7,923		146,349		96,789
Aggregate total	$	1,542,695	$	79,584	$	1,463,111	$	994,869

	Amortized Cost Before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year ended December 31, 2011
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	350,420	$	11,851	$	338,569	$	224,716
2nd quarter present value of cash flows expected to be less than the amortized cost basis		483,217		23,151		460,066		303,615
3rd quarter present value of cash flows expected to be less than the amortized cost basis		483,427		12,763		470,664		287,099
4th quarter present value of cash flows expected to be less than the amortized cost basis		583,778		29,379		554,399		398,138
Aggregate total	$	1,900,842	$	77,144	$	1,823,698	$	1,213,568

57

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

	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

58

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The following loan-backed and structured securities were held at December 31, 2012, 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	$	528	$	462	$	66	$	462	$	444	1Q 2012
02146QAB9		60,611		56,967		3,644		56,967		33,420	1Q 2012
02146QAC7		40,173		38,252		1,921		38,252		22,057	1Q 2012
02146QAD5		33,942		30,247		3,695		30,247		19,728	1Q 2012
059515AC0		6,517		6,438		79		6,438		4,024	1Q 2012
05951VAV1		41,630		38,925		2,705		38,925		26,374	1Q 2012
12668RAA6		23,002		21,254		1,748		21,254		12,702	1Q 2012
126694YQ5		13,723		12,191		1,532		12,191		8,717	1Q 2012
225470FJ7		3,832		3,699		133		3,699		3,751	1Q 2012
24763LDE7		709		704		5		704		405	1Q 2012
35729PPZ7		13,403		13,125		278		13,125		1,696	1Q 2012
39539KAF0		4,306		4,288		18		4,288		4,077	1Q 2012
525170CG9		79		77		2		77		60	1Q 2012
525221HE0		2,317		450		1,867		450		482	1Q 2012
550279BA0		21,022		19,197		1,825		19,197		11,768	1Q 2012
65536PAA8		1,183		1,163		20		1,163		548	1Q 2012
75116EAA0		9,762		8,567		1,195		8,567		6,717	1Q 2012
75970JAJ5		4,264		4,213		51		4,213		2,358	1Q 2012
75970QAH3		5,411		5,378		33		5,378		3,183	1Q 2012
75971EAF3		5,208		5,185		23		5,185		3,069	1Q 2012
761118AH1		1,585		1,572		13		1,572		1,465	1Q 2012
761118RM2		2,457		2,162		295		2,162		1,268	1Q 2012
761118VY1		15,858		15,626		232		15,626		8,957	1Q 2012
12669F2J1		5,774		4,810		964		4,810		4,213	1Q 2012
52524YAF0		10,522		10,233		289		10,233		6,177	1Q 2012
75970QAD2		5,352		5,234		118		5,234		3,228	1Q 2012
3622NAAC4		728		667		61		667		436	1Q 2012
36185MAF9		21,978		21,941		37		21,941		18,631	1Q 2012
48123HAA1		1,527		1,418		109		1,418		620	1Q 2012
59020UUA1		297		217		80		217		87	1Q 2012
000759BP4		453		445		8		445		433	2Q 2012
02146QAC7		37,571		36,623		948		36,623		20,350	2Q 2012
02146QAD5		29,299		28,344		955		28,344		18,584	2Q 2012
05530PAA0		1,201		1,001		200		1,001		982	2Q 2012
12668ACG8		14,148		13,355		793		13,355		7,870	2Q 2012
12668RAA6		20,628		20,291		337		20,291		12,334	2Q 2012
126694A32		34,876		32,248		2,628		32,248		18,818	2Q 2012
12669GTS0		29,271		20,769		8,502		20,769		11,964	2Q 2012
225470FJ7		3,591		3,484		107		3,484		3,261	2Q 2012
225492AE7		16,507		16,428		79		16,428		15,362	2Q 2012
35729PPC8		445		371		74		371		211	2Q 2012
3622NAAE0		50,312		49,814		498		49,814		32,341	2Q 2012
36244SAE8		593		587		6		587		468	2Q 2012
41161MAC4		43,057		42,415		642		42,415		27,048	2Q 2012
52522QAM4		81,369		80,241		1,128		80,241		68,269	2Q 2012
61754HAB8		1,777		1,762		15		1,762		921	2Q 2012
65536PAA8		1,151		1,093		58		1,093		520	2Q 2012
74925FAA1		10,781		10,722		59		10,722		10,660	2Q 2012
75970JAJ5		4,115		4,084		31		4,084		2,298	2Q 2012
75970QAH3		5,278		5,245		33		5,245		3,095	2Q 2012
75971EAF3		5,098		5,079		19		5,079		2,914	2Q 2012
759950GY8		9,467		9,320		147		9,320		6,024	2Q 2012

59

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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
761118RM2	$	2,108	$	2,077	$	31	$	2,077	$	1,176	2Q 2012
761118VY1		14,969		14,525		444		14,525		8,372	2Q 2012
41161PKD4		2,267		2,251		16		2,251		1,423	2Q 2012
05535DAM6		290		—		290		—		247	2Q 2012
75970QAD2		5,115		4,894		221		4,894		3,090	2Q 2012
3622NAAC4		646		624		22		624		388	2Q 2012
41161XAC0		66,572		62,665		3,907		62,665		41,665	2Q 2012
36185MAF9		20,698		20,550		148		20,550		16,829	2Q 2012
59020UUA1		206		40		166		40		82	2Q 2012
059523AV2		591		482		109		482		497	2Q 2012
759950GZ5		1,000		474		526		474		88	2Q 2012
02146QAB9		54,011		53,056		955		53,056		36,367	3Q 2012
02146QAC7		36,007		34,823		1,184		34,823		23,073	3Q 2012
02146QAD5		27,191		26,877		314		26,877		20,847	3Q 2012
02148AAA4		35,516		35,162		354		35,162		29,720	3Q 2012
02148GAD5		1,500		1,442		58		1,442		971	3Q 2012
02149QAD2		26,041		25,370		671		25,370		19,141	3Q 2012
026936AA2		138,711		126,429		12,282		126,429		84,791	3Q 2012
059515AC0		5,975		5,891		84		5,891		4,025	3Q 2012
126694A32		31,156		30,693		463		30,693		22,046	3Q 2012
126694YJ1		26,410		24,161		2,249		24,161		19,467	3Q 2012
23332UGM0		9,058		8,619		439		8,619		6,519	3Q 2012
3622MAAF8		33		—		33		—		—	3Q 2012
3622NAAE0		47,914		43,590		4,324		43,590		37,070	3Q 2012
41161MAC4		41,081		40,299		782		40,299		27,180	3Q 2012
52108HV84		3,000		2,136		864		2,136		1,061	3Q 2012
65536PAA8		1,061		1,029		32		1,029		607	3Q 2012
759676AJ8		5,976		5,841		135		5,841		3,736	3Q 2012
759950GY8		9,123		9,042		81		9,042		6,008	3Q 2012
83611MMM7		7,497		7,459		38		7,459		747	3Q 2012
41161PKD4		2,168		2,109		59		2,109		1,540	3Q 2012
3622NAAC4		602		549		53		549		450	3Q 2012
12667GCH4		5,244		5,221		23		5,221		3,469	3Q 2012
02149QAD2		24,467		23,966		501		23,966		19,307	4Q 2012
059515AC0		5,691		5,592		99		5,592		4,027	4Q 2012
126694A32		29,181		28,800		381		28,800		23,236	4Q 2012
35729PPC8		353		339		14		339		275	4Q 2012
35729PPZ7		13,075		12,126		949		12,126		523	4Q 2012
46628SAJ2		6,769		6,499		270		6,499		5,926	4Q 2012
52108HV84		2,102		1,837		265		1,837		1,062	4Q 2012
52524YAA1		2,827		2,514		313		2,514		2,124	4Q 2012
61915RCJ3		19,356		19,181		175		19,181		14,371	4Q 2012
759676AJ8		5,724		5,531		193		5,531		3,866	4Q 2012
75970JAJ5		3,887		3,813		74		3,813		2,883	4Q 2012
75970QAH3		5,041		4,995		46		4,995		3,865	4Q 2012
75971EAF3		4,967		4,908		59		4,908		3,430	4Q 2012
86357UAA9		3,219		2,832		387		2,832		—	4Q 2012
86357UBM2		564		494		70		494		—	4Q 2012
86365EAA5		1,648		1,443		205		1,443		—	4Q 2012
86365EAC1		695		609		86		609		—	4Q 2012
86365KAA1		568		498		70		498		—	4Q 2012

60

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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
36298JAA1	$	9,827	$	6,747	$	3,080	$	6,747	$	3,553	4Q 2012
75970QAD2		4,669		4,630		39		4,630		3,624	4Q 2012
32113JAE5		1,004		924		80		924		250	4Q 2012
32113JAD7		1,324		1,314		10		1,314		406	4Q 2012
12667GCH4		5,160		5,053		107		5,053		3,589	4Q 2012
759950GZ5		444		—		444		—		66	4Q 2012
759950FJ2		1,710		1,704		6		1,704		404	4Q 2012
000759BP4		636		575		61		575		596	1Q 2011
02146QAB9		70,359		68,745		1,614		68,745		38,728	1Q 2011
02146QAD5		39,209		38,422		787		38,422		23,134	1Q 2011
05951VAV1		50,127		49,693		434		49,693		36,948	1Q 2011
12667GXW8		20,351		20,185		166		20,185		17,916	1Q 2011
12668WAC1		12,000		11,713		287		11,713		6,354	1Q 2011
12669GTS0		43,618		42,859		759		42,859		23,303	1Q 2011
14984WAA8		7,559		7,446		113		7,446		6,053	1Q 2011
45661EAE4		2,499		1,726		773		1,726		1,584	1Q 2011
525221GR2		1,281		935		346		935		823	1Q 2011
525221HE0		3,197		2,782		415		2,782		4,994	1Q 2011
70557RAB6		31,956		31,770		186		31,770		22,910	1Q 2011
75970JAJ5		4,756		4,657		99		4,657		3,022	1Q 2011
75971EAF3		6,002		5,832		170		5,832		3,548	1Q 2011
76110G3H2		2,794		957		1,837		957		1,715	1Q 2011
76110WPD2		2,513		2,396		117		2,396		2,421	1Q 2011
761118VY1		20,054		19,668		386		19,668		10,670	1Q 2011
81379EAD4		3,256		2,091		1,165		2,091		338	1Q 2011
83611XAE4		1,051		333		718		333		280	1Q 2011
86358EZU3		5,921		4,980		941		4,980		2,029	1Q 2011
871928AX5		4,227		3,582		645		3,582		3,582	1Q 2011
749248AG5		14,227		14,034		193		14,034		12,482	1Q 2011
75970QAD2		7,057		6,770		287		6,770		4,870	1Q 2011
045427AE1		1,865		1,490		375		1,490		893	2Q 2011
12638DAA4		86,532		83,834		2,698		83,834		74,622	2Q 2011
12640PAA3		6,639		6,345		294		6,345		6,562	2Q 2011
126670ZN1		21,165		19,024		2,141		19,024		4,055	2Q 2011
12668WAC1		20,241		20,000		241		20,000		10,222	2Q 2011
126694A32		14,807		14,701		106		14,701		8,458	2Q 2011
12669GTS0		41,692		36,985		4,707		36,985		19,529	2Q 2011
225470T94		5,822		5,751		71		5,751		5,035	2Q 2011
22942KCA6		17,023		15,111		1,912		15,111		12,886	2Q 2011
3622NAAE0		56,897		54,879		2,018		54,879		33,811	2Q 2011
36245CAC6		791		737		54		737		220	2Q 2011
41161MAC4		50,636		49,540		1,096		49,540		30,482	2Q 2011
46628SAJ2		8,682		8,522		160		8,522		5,898	2Q 2011
52524MAW9		9,284		8,219		1,065		8,219		4,938	2Q 2011
550279BA0		25,520		24,577		943		24,577		15,391	2Q 2011
61754HAB8		2,086		2,056		30		2,056		1,317	2Q 2011
65536PAA8		1,661		1,630		31		1,630		915	2Q 2011
75970JAJ5		4,580		4,532		48		4,532		2,831	2Q 2011
75970QAH3		6,059		5,852		207		5,852		3,694	2Q 2011
75971EAF3		11,519		11,413		106		11,413		6,260	2Q 2011
76110G3H2		1,601		870		731		870		889	2Q 2011
761118RM2		2,770		2,728		42		2,728		1,567	2Q 2011

61

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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
761118VY1	$	18,605	$	17,970	$	635		$	17,970	$	9,203	2Q 2011
81379EAD4		1,740		1,414		326			1,414		97	2Q 2011
83611XAE4		329		118		211			118		157	2Q 2011
86358EZU3		4,946		4,370		576			4,370		689	2Q 2011
93934FHC9		34,880		33,497		1,383			33,497		22,366	2Q 2011
93936NBC6		863		407		456			407		389	2Q 2011
749248AG5		17,308		17,277		31			17,277		15,674	2Q 2011
75970QAD2		6,672		6,218		454			6,218		4,565	2Q 2011
02146QAB9		66,595		63,475		3,120			63,475		35,341	3Q 2011
02146QAD5		36,649		35,735		914			35,735		19,535	3Q 2011
026936AA2		154,988		149,463		5,525			149,463		77,940	3Q 2011
05948KV63		11,652		11,491		161			11,491		9,696	3Q 2011
12638DAA4		54,787		56,934		(2,147	)		56,934		51,075	3Q 2011
12666UAC7		18,561		18,558		3			18,558		11,605	3Q 2011
12668WAC1		11,129		11,075		54			11,075		5,017	3Q 2011
126694A32		9,401		9,090		311			9,090		4,986	3Q 2011
12669GTS0		35,892		34,078		1,814			34,078		16,984	3Q 2011
14984WAA8		6,939		6,757		182			6,757		5,293	3Q 2011
225470FJ7		4,294		4,257		37			4,257		3,730	3Q 2011
225470U27		4,713		4,667		46			4,667		3,692	3Q 2011
36244SAE8		672		669		3			669		488	3Q 2011
45661EAE4		1,621		1,190		431			1,190		763	3Q 2011
65536PAA8		1,265		1,232		33			1,232		604	3Q 2011
75970JAJ5		4,448		4,387		61			4,387		2,509	3Q 2011
75970QAH3		5,736		5,668		68			5,668		3,292	3Q 2011
75971EAF3		5,552		5,473		79			5,473		2,623	3Q 2011
761118RM2		2,637		2,568		69			2,568		1,387	3Q 2011
761118VY1		17,391		17,101		290			17,101		8,517	3Q 2011
81379EAD4		1,743		669		1,074			669		66	3Q 2011
92922FZ27		20,331		20,154		177			20,154		18,067	3Q 2011
93936NBC6		323		97		226			97		77	3Q 2011
75970QAD2		6,107		5,878		229			5,878		3,811	3Q 2011
17311QAA8		23,608		21,769		1,839			21,769		21,769	3Q 2011
02146QAC7		33,428		32,478		950			32,478		14,430	4Q 2011
05948KL31		14,784		14,778		6			14,778		11,547	4Q 2011
059494AA2		32,494		31,969		525			31,969		24,787	4Q 2011
12638DAA4		55,461		53,176		2,285			53,176		49,194	4Q 2011
12640PAA3		6,122		5,942		180			5,942		6,115	4Q 2011
12667G5G4		15,321		14,995		326			14,995		14,377	4Q 2011
12668RAA6		24,029		23,537		492			23,537		11,676	4Q 2011
12668WAC1		10,903		10,666		237			10,666		4,723	4Q 2011
126694A32		37,195		36,657		538			36,657		19,337	4Q 2011
12669GTS0		33,195		31,654		1,541			31,654		13,920	4Q 2011
225470FJ7		4,254		3,968		286			3,968		3,712	4Q 2011
225470YD9		44,143		41,031		3,112			41,031		39,881	4Q 2011
32027LAG0		57		1		56			1		—	4Q 2011
35729PPC8		629		478		151			478		235	4Q 2011
3622NAAE0		54,725		53,750		975			53,750		33,707	4Q 2011
41161MAC4		47,897		45,318		2,579			45,318		25,821	4Q 2011
525170CG9		87		84		3			84		66	4Q 2011
52522QAM4		92,552		86,587		5,965			86,587		68,719	4Q 2011
65536PAA8		1,209		1,196		13			1,196		494	4Q 2011

62

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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
74925FAA1	$	12,139	$	11,693	$	446	$	11,693	$	11,226	4Q 2011
75970QAH3		5,559		5,520		39		5,520		3,160	4Q 2011
75971EAF3		5,387		5,294		93		5,294		2,461	4Q 2011
761118AH1		25,892		25,531		361		25,531		24,066	4Q 2011
81378KAC3		11,316		5,016		6,300		5,016		6,463	4Q 2011
81379EAD4		655		57		598		57		44	4Q 2011
83611XAE4		107		36		71		36		18	4Q 2011
12669F2J1		6,472		5,885		587		5,885		3,699	4Q 2011
75970QAD2		5,774		5,550		224		5,550		3,679	4Q 2011
48123HAA1		1,991		1,551		440		1,551		580	4Q 2011
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		20,112		19,900		212		19,900		17,911	1Q 2010
126685DZ6		6,759		6,287		472		6,287		5,438	1Q 2010
225470FJ7		6,264		6,146		118		6,146		5,130	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		17,077		14,880		2,197		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
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		11,848		3,886		11,848		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		3,388		288		3,388		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		12,138		10,952		1,186		10,952		8,530	1Q 2010
86365EAC1		5,116		4,617		499		4,617		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

63

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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	$	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		1,318		888		430		888		319	2Q 2010
12668VAF6		8,391		8,232		159		8,232		4,535	2Q 2010
225470FJ7		5,503		5,230		273		5,230		4,981	2Q 2010
225470U27		6,062		5,459		603		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		13,466		1,388		13,466		920	2Q 2010
36244SAE8		901		881		20		881		508	2Q 2010
525170CG9		1,584		1,293		291		1,293		1,635	2Q 2010
525221HE0		11,185		6,764		4,421		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
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		20,892		20,806		86		20,806		20,536	3Q 2010
126685DZ6		5,919		5,602		317		5,602		4,887	3Q 2010
12669GTS0		50,815		47,578		3,237		47,578		25,003	3Q 2010
225470FJ7		5,065		5,060		5		5,060		5,188	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
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		23,715		22,571		1,144		22,571		11,123	3Q 2010
92922FZ27		23,995		23,692		303		23,692		21,808	3Q 2010
939336Q55		604		596		8		596		279	3Q 2010
05535DAM6		476		415		61		415		318	3Q 2010
05953YAG6		1,788		1,788		—		1,788		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

64

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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
52524YAA1	$	3,033	$	3,012	$	21	$	3,012	$	2,837	4Q 2010
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		8,939		7,602		1,337		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		8,708		8,607		101		8,607		8,394	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		3,756		3,495		261		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		32,722		31,200		1,522		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		21,292		21,076		216		21,076		19,735	4Q 2010
863592AQ4		9,443		9,303		140		9,303		8,654	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		7,621		7,494		127		7,494		4,321	3Q 2009

65

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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
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
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
12668VAF6		9,775		9,187		588		9,187		4,470	3Q 2009
225470FJ7		7,370		7,107		263		7,107		4,748	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		45,467		44,726		741		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		25,000		23,949		1,051		23,949		21,479	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		6,755		6,727		28		6,727		4,955	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		234		218		16		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

66

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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	$	7,991	$	6,431	$	1,560	$	6,431	$	4,577	4Q 2009
933637AJ9		3,783		3,505		278		3,505		2,574	4Q 2009

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, 2012 and 2011 is as follows:

	Losses 12 Months or More		Losses Less Than 12 Months
Year ended December 31, 2012
The aggregate amount of unrealized losses	$	787,684	$	4,100
The aggregate related fair value of securities with unrealized losses		3,247,332		245,722

	Losses 12 Months or More		Losses Less Than 12 Months
Year ended December 31, 2011
The aggregate amount of unrealized losses	$	1,414,929	$	67,845
The aggregate related fair value of securities with unrealized losses		4,176,581		1,125,357

Detail of net investment income (loss) is presented below:

	Year Ended December 31
	2012		2011			2010
Income (loss):
Bonds	$	1,905,410	$	2,147,304		$	2,476,783
Preferred stocks		9,320		9,136			10,296
Common stocks		168,713		48,828			36,266
Mortgage loans on real estate		411,742		469,635			534,467
Real estate		17,328		19,488			20,816
Policy loans		48,012		46,677			50,210
Cash, cash equivalents and short-term investments		7,509		5,010			11,008
Derivatives		197,183		(29,303	)		(147,236	)
Other invested assets		35,582		6,183			50,078
Other		34,107		11,912			14,525
Gross investment income		2,834,906		2,734,870			3,057,213
Less investment expenses		105,379		119,012			138,042
Net investment income	$	2,729,527	$	2,615,858		$	2,919,171

67

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Proceeds from sales and other disposals (excluding maturities) of bonds and preferred stock and related gross realized capital gains and losses were as follows:

	Year Ended December 31
	2012			2011			2010
Proceeds	$	9,180,982		$	16,303,347		$	23,903,441
Gross realized gains	$	292,804		$	581,820		$	1,624,135
Gross realized losses		(45,003	)		(85,014	)		(142,953	)
Net realized capital gains (losses)	$	247,801		$	496,806		$	1,481,182

The Company had gross realized losses for the years ended December 31, 2012, 2011 and 2010 of $88,836, $127,005 and $192,541, 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
	2012			2011			2010
Bonds	$	158,547		$	370,867		$	1,290,685
Preferred stocks		418			5,557			(75	)
Common stocks		(621	)		22,701			2,949
Mortgage loans on real estate		13,802			(2,171	)		(18,451	)
Real estate		7,190			4,287			(235	)
Cash, cash equivalents and short-term investments		9			13			12
Derivatives		(508,177	)		304,713			(160,155	)
Other invested assets		112,293			91,017			124,712
		(216,539	)		796,984			1,239,442
Federal income tax effect		(94,705	)		(185,043	)		(450,184	)
Transfer to interest maintenance reserve		(71,282	)		(188,405	)		(846,096	)
Net realized capital gains (losses) on investments	$	(382,526	)	$	423,536		$	(56,838	)

At December 31, 2012 and 2011, the Company had recorded investments in restructured securities of $8,476 and $10,272, respectively. The capital gains (losses) taken as a direct result of restructures in 2012, 2011 and 2010 were $167, $(4,361) and $16,745, 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.

68

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The changes in net unrealized capital gains and losses on investments, including the changes in net unrealized foreign capital gains and losses, were as follows:

	Change in Unrealized
	Year Ended December 31
	2012			2011			2010
Bonds	$	108,175		$	(143,599	)	$	(53,819	)
Preferred stocks		3,957			(3,816	)		(35	)
Common stocks		21,290			(19,959	)		22,057
Affiliated entities		(25,164	)		461,477			70,914
Mortgage loans on real estate		6,270			(2,196	)		1,826
Derivatives		(98,933	)		239,967			113,051
Other invested assets		14,749			103,189			25,289
Change in unrealized capital gains/losses, before taxes		30,344			635,063			179,283
Taxes on unrealized capital gains/losses		(20,779	)		(57,633	)		(17,514	)
Change in unrealized capital gains/losses, net of tax	$	9,565		$	577,430		$	161,769

During 2012, the Company issued mortgage loans with a maximum interest rate of 5.40% and a minimum interest rate of 3.44% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated during the year ending December 31, 2012 at the time of origination was 75%. During 2011, the Company issued mortgage loans with a maximum interest rate of 6.16% and a minimum interest rate of 4.01% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated during the year ending December 31, 2011 at the time of origination was 70%. During 2012, the Company reduced the interest rate by 1% on two outstanding mortgage loans with statement value of $13,326. During 2011, the Company did not reduce interest rates on any outstanding mortgages. At December 31, 2012 and 2011, there were no loans that were non-income producing for the previous 180 days. There was no accrued interest related to these mortgage loans at December 31, 2012 or 2011. 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, 2012 and 2011 there were no taxes, assessments and other amounts advanced and not included in the mortgage loan total.

At December 31, 2012 and 2011, respectively, the Company held $37,459 and $44,738 in impaired loans with related allowance for credit losses of $2,124 and $8,394. There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2012 and 2011, respectively. The average recorded investment in impaired loans during 2012 and 2011 was $41,959 and $53,714, respectively.

69

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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
	2012			2011			2010
Balance at beginning of period	$	8,394		$	6,198		$	8,024
Additions, net charged to operations		500			6,599			16,645
Recoveries in amounts previously charged off		(6,770	)		(4,403	)		(18,471	)
Balance at end of period	$	2,124		$	8,394		$	6,198

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, 2012, 2011 and 2010, respectively, the Company recognized $2,879, $3,701 and $8,500 of interest income on impaired loans. Interest income of $2,971, $3,610 and $8,568, respectively, was recognized on a cash basis for the years ended December 31, 2012, 2011 and 2010.

At December 31, 2012 and 2011, the Company held a mortgage loan loss reserve in the AVR of $54,808 and $65,017, respectively.

The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:

Geographic Distribution							Property Type Distribution
	December 31							December 31
	2012			2011				2012			2011
South Atlantic		25	%		25	%	Office		27	%		28	%
Pacific		22			23		Retail		27			23
Middle Atlantic		15			15		Apartment		20			21
Mountain		15			14		Industrial		18			18
E. North Central		9			10		Other		3			4
W. North Central		6			6		Agricultural		3			4
W. South Central		5			3		Medical		2			2
E. South Central		2			2
New England		1			2

70

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2012, 2011 and 2010, the Company had mortgage loans with a total net admitted asset value of $2,176, $2,416 and $13,125, respectively, which had been restructured in accordance with SSAP No. 36, Troubled Debt Restructuring. There were no realized losses during the years ended December 31, 2012, 2011 and 2010 related to such restructurings. There were no commitments to lend additional funds to debtors owing receivables at December 31, 2012, 2011 or 2010.

During 2012, the Company recorded an impairment of $97 for its investment in Yucaipa Equity Partners, L.P. The impairment was taken because the decline in fair value of the fund was deemed to be other than temporary and a recovery in value from the remaining underlying investments in the fund is not anticipated. The write-down is included in net realized capital gains (losses) within the statements of operations.

During 2011, the Company recorded an impairment of $5,770 for its investment in William Blair Mezzanine Capital Fund III, L.P., an impairment of $8,799 for its investment in Harbour Group Investments IV, L.P. and an impairment of $1,697 for its investment in e-Financial Ventures 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.

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.

At December 31, 2012, the Company had ownership interests in fifty LIHTC investments. The remaining years of unexpired tax credits ranged from one to thirteen, and none of the properties were subject to regulatory review. The length of time remaining for holding periods ranged from one to seventeen years. The amount of contingent equity commitments expected to be paid during the years 2013 to 2029 is $23,053. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

At December 31, 2011, the Company had ownership interests in sixty-five LIHTC investments. The remaining years of unexpired tax credits ranged from one to eleven, 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 2012 to 2026 was $53,963. There were no impairment losses, write-downs or reclassifications during 2011 related to any of these credits.

71

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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, 2012 and 2011:

Description of State Transferable and Non-			December 31, 2012
transferable Tax Credits	State		Carrying Value		Unused Amount*
Low-Income Housing Tax Credits		MA	$	2,810	$	5,060
Total			$	2,810	$	5,060
Description of State Transferable and Non-			December 31, 2011
transferable Tax Credits	State		Carrying Value		Unused Amount
Low-Income Housing Tax Credits		MA	$	4,446	$	6,696
Total			$	4,446	$	6,696

* The unused amount reflects credits that the Company deems will be realizable in the period from 2013 to 2015.

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.

Derivatives

The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets (cash or securities) on the Company’s behalf in an amount equal to the difference between the net positive fair value of the contracts and an agreed upon threshold based on the credit rating of the counterparty. If the net fair value of all contracts with this counterparty is negative, then the Company is required to post similar assets (cash or securities).

72

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2012 and 2011, the fair value of all derivative contracts, aggregated at a counterparty level, with a positive fair value amounted to $1,962,723 and $2,014,879, respectively.

At December 31, 2012 and 2011, the fair value of all derivative contracts, aggregated at a counterparty level, with a negative fair value amounted to $521,564 and $560,015, respectively.

For the years ended December 31, 2012 and 2011, the Company has recorded $42,816 and $142,076, respectively, for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. This has been recorded directly to unassigned surplus as an unrealized gain.

The Company did not recognize any unrealized gains or losses during 2012 and 2011 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

The Company did not recognize any income from options contracts for the years ended December 31, 2012, 2011 or 2010.

The maximum term over which the Company is hedging its exposure to the variability of future cash flows is approximately 20 years for forecasted hedge transactions.

At December 31, 2012 and 2011, 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, 2012 and 2011, the Company has accumulated deferred gains in the amount of $66,410 and $78,051, respectively, related to the termination of swaps that were hedging forecasted transactions. It is expected that these gains will be used as basis adjustments on future asset purchases expected to transpire throughout 2026.

At December 31, 2012 and 2011, the Company had replicated assets with a fair value of $3,571,947 and $2,965,038 and credit default and forward starting interest rate swaps with a fair value of $(143,165) and $(195,744), respectively. For the years ended December 31, 2012 and 2011, the Company recognized $6,989 and $(408), respectively, in capital gains (losses) related to replication transactions. For the year ended December 31, 2010, the Company did not recognize any capital losses related to replication transactions.

73

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

As stated in Note 1, 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, 2012, credit default swaps, used in replicating corporate bonds are as follows:

Deal, Receive (Pay), Underlying	Maturity Date		Maximum Future Payout (Estimate)		Current Fair Value
4200, SWAP, USD 1 / (USD 0), : 912810QK7		12/20/2015	$	10,000	$	(19	)
4201, SWAP, USD 1 / (USD 0), : 912828JR2		12/20/2015		10,000		66
4203, SWAP, USD 1 / (USD 0), : 912810PX0		12/20/2015		10,000		(5	)
4208, SWAP, USD 1 / (USD 0), : 912810QK7		12/20/2015		20,000		131
4252, SWAP, USD 1 / (USD 0), : 912803DJ9		12/20/2015		10,000		21
4253, SWAP, USD 1 / (USD 0), : 912803BM4		12/20/2015		20,000		242
4254, SWAP, USD 1 / (USD 0), : 912803DK6		12/20/2015		20,000		(38	)
4257, SWAP, USD 1 / (USD 0), : 912803DK6		12/20/2015		20,000		79
4261, SWAP, USD 1 / (USD 0), : 912803CH4		12/20/2015		20,000		74
4262, SWAP, USD 1 / (USD 0), : 912803BJ1		12/20/2015		20,000		(38	)
4267, SWAP, USD 1 / (USD 0), : 912803DJ9		12/20/2015		20,000		42
4269, SWAP, USD 1 / (USD 0), : 912803CH4		12/20/2015		20,000		478
4272, SWAP, USD 1 / (USD 0), : 912803DK6		12/20/2015		20,000		281
4280, SWAP, USD 1 / (USD 0), : 912803DJ9		3/20/2016		10,000		167
4281, SWAP, USD 1 / (USD 0), : 912803DM2		3/20/2016		20,000		318
4299, SWAP, USD 1 / (USD 0), : US670346AE56		3/20/2016		10,000		141
4311, SWAP, USD 1 / (USD 0), : US35671DAS45		6/20/2016		20,000		(11	)
4347, SWAP, USD 1 / (USD 0), : CDX IG 16		6/20/2016		20,000		220
4479, SWAP, USD 1 / (USD 0), : US731011AN26		3/20/2017		10,000		164
4480, SWAP, USD 1 / (USD 0), : US731011AN26		3/20/2017		10,000		164
4481, SWAP, USD 1 / (USD 0), : US46513EY48		3/20/2017		10,000		(43	)
4482, SWAP, USD 1 / (USD 0), : XS0113419690		3/20/2017		10,000		170
4483, SWAP, USD 1 / (USD 0), : XS0203685788		3/20/2017		15,000		334
4484, SWAP, USD 1 / (USD 0), : US50064FAD69		3/20/2017		10,000		214
4485, SWAP, USD 1 / (USD 0), : USY6826RAA06		3/20/2017		10,000		175
4486, SWAP, USD 1 / (USD 0), : US712219AG90		3/20/2017		10,000		223
4487, SWAP, USD 1 / (USD 0), : US168863AS74		3/20/2017		15,000		255
4491, SWAP, USD 1 / (USD 0), : US731011AN26		3/20/2017		15,000		247
4493, SWAP, USD 1 / (USD 0), : XS0113419690		3/20/2017		15,000		255
4494, SWAP, USD 1 / (USD 0), : US50064FAD69		3/20/2017		5,000		107
4500, SWAP, USD 0.25 / (USD 0), : XS0417728325		3/20/2017		15,000		25
4502, SWAP, USD 1 / (USD 0), : XS0203685788		3/20/2017		15,000		334
4504, SWAP, USD 1 / (USD 0), : XS0412694647		3/20/2017		15,000		414
4505, SWAP, USD 1 / (USD 0), : US16886AS74		3/20/2017		10,000		170
4506, SWAP, USD 1 / (USD 0), : JP1200551248		3/20/2017		15,000		239
4507, SWAP, USD 1 / (USD 0), : XS0203685788		3/20/2017		10,000		223
4508, SWAP, USD 1 / (USD 0), : XS0113419690		3/20/2017		15,000		255
4509, SWAP, USD 1 / (USD 0), : US731011AN26		3/20/2017		10,000		164
4510, SWAP, USD 1 / (USD 0), : US50064FAD69		3/20/2017		10,000		214
4511, SWAP, USD 0.25 / (USD 0), : XS0417728325		3/20/2017		10,000		17
4512, SWAP, USD 1 / (USD 0), : US168863AS74		3/20/2017		10,000		170
4513, SWAP, USD 1 / (USD 0), : USY6826RAA06		3/20/2017		5,000		87
4515, SWAP, USD 1 / (USD 0), : XS0412694647		3/20/2017		10,000		276
4520, SWAP, USD 0.25 / (USD 0), : XS0417728325		3/20/2017		20,000		33
4521, SWAP, USD 1 / (USD 0), : US731011AN26		3/20/2017		10,000		164
4522, SWAP, USD 1 / (USD 0), : US50064FAD69		3/20/2017		10,000		214

74

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

4523, SWAP, USD 1 / (USD 0), : XS0203685788	3/20/2017	10,000	223
4524, SWAP, USD 1 / (USD 0), : JP1200551248	3/20/2017	20,000	319
4525, SWAP, USD 1 / (USD 0), : XS0412694647	3/20/2017	10,000	276
4527, SWAP, USD 0.25 / (USD 0), : US317873AY36	3/20/2017	10,000	14
4529, SWAP, USD 1 / (USD 0), : SUS650162AP56	3/20/2017	10,000	267
4530, SWAP, USD 1 / (USD 0), : USY6826RAA06	3/20/2017	10,000	175
4563, SWAP, USD 1 / (USD 0), : US59156RAN89	6/20/2017	25,000	(512	)
4564, SWAP, USD 1 / (USD 0), : US475070AD04	6/20/2017	25,000	(715	)
4567, SWAP, USD 1 / (USD 0), : US026874AZ07	6/20/2017	25,000	(183	)
4570, SWAP, USD 1 / (USD 0), : US026874AZ07	6/20/2017	25,000	(183	)
4576, SWAP, USD 1 / (USD 0), : US141781AC86	6/20/2017	10,000	136
4577, SWAP, USD 1 / (USD 0), : US141781AC86	6/20/2017	5,000	68
4589, SWAP, USD 1 / (USD 0), : US42217KAL08	6/20/2017	10,000	(23	)
4599, SWAP, USD 1 / (USD 0), : CDX IG 18	6/20/2017	20,000	129
4600, SWAP, USD 1 / (USD 0), : CDX IG 18	6/20/2017	20,000	129
4603, SWAP, USD 1 / (USD 0), : CDX IG 18	6/20/2017	20,000	129
4604, SWAP, USD 1 / (USD 0), : CDX IG 18	6/20/2017	26,000	167
4622, SWAP, USD 1 / (USD 0), : CDX IG 18	6/20/2017	25,000	161
4625, SWAP, USD 5 / (USD 0), : US345370BX76	6/20/2017	25,000	3,334
4631, SWAP, USD 1 / (USD 0), : US105756AL40	6/20/2017	10,000	25
4632, SWAP, USD 1 / (USD 0), : XS0114288789	6/20/2017	10,000	(67	)
4633, SWAP, USD 1 / (USD 0), : US715638AP79	6/20/2017	10,000	73
4634, SWAP, USD 1 / (USD 0), : XS0203685788	6/20/2017	10,000	213
4635, SWAP, USD 1 / (USD 0), : XS0412694647	6/20/2017	10,000	275
4636, SWAP, USD 1 / (USD 0), : US731011AN26	6/20/2017	8,000	118
4675, SWAP, USD 1 / (USD 0), : US105756AL40	9/20/2017	5,700	2
4676, SWAP, USD 1 / (USD 0), : XS0114288789	9/20/2017	4,900	(50	)
4677, SWAP, USD 1 / (USD 0), : US455780AQ93	9/20/2017	9,500	(77	)
4678, SWAP, USD 1 / (USD 0), : US715638AP79	9/20/2017	9,000	49
4680, SWAP, USD 0.25 / (USD 0), : XS0417728325	9/20/2017	7,100	(8	)
4684, SWAP, USD 1 / (USD 0), : US836205AJ33	9/20/2017	10,600	(168	)
4686, SWAP, USD 1 / (USD 0), : US88322LAA70	9/20/2017	5,100	42
4709, SWAP, USD 1 / (USD 0), : JP1200551248	9/20/2017	4,000	51
4710, SWAP, USD 1 / (USD 0), : XS0114288789	9/20/2017	4,500	(46	)
4711, SWAP, USD 0.25 / (USD 0), : XS0417728325	9/20/2017	3,000	(3	)
4720, SWAP, USD 1 / (USD 0), : XS0114288789	9/20/2017	10,000	(101	)
4721, SWAP, USD 1 / (USD 0), : US91086QAW87	9/20/2017	10,000	52
4724, SWAP, USD 1 / (USD 0), : US836205AJ33	9/20/2017	8,000	(127	)
4725, SWAP, USD 1 / (USD 0), : US105756AL40	9/20/2017	8,000	2
4766, SWAP, USD 1 / (USD 0), : 12624KAD8	12/20/2017	15,000	(28	)
4767, SWAP, USD 1 / (USD 0), : 46634GAB7	12/20/2017	15,000	49
4768, SWAP, USD 1 / (USD 0), : 92936CAJ8	12/20/2017	15,000	(202	)
4769, SWAP, USD 1 / (USD 0), : 175305EEE1	12/20/2017	15,000	173
4770, SWAP, USD 1 / (USD 0), : 36248EAB1	12/20/2017	10,000	(134	)
4772, SWAP, USD 1 / (USD 0), : 17305EDT9	12/20/2017	5,000	(61	)
4773, SWAP, USD 1 / (USD 0), : 46636DAJ5	12/20/2017	10,000	36
4774, SWAP, USD 1 / (USD 0), : 36249KAC4	12/20/2017	10,000	62

75

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

4775, SWAP, USD 1 / (USD 0), : 17305EEE1	12/20/2017		5,000		66
4790, SWAP, USD 1 / (USD 0), : 617459AD4	12/20/2017		10,000		(535	)
4792, SWAP, USD 1 / (USD 0), : 61761DAD4	12/20/2017		10,000		(535	)
4797, SWAP, USD 1 / (USD 0), : 36248EAB1	12/20/2017		10,000		(351	)
4798, SWAP, USD 1 / (USD 0), : 12624PAE5	12/20/2017		10,000		(195	)
4799, SWAP, USD 1 / (USD 0), : 92936YAC5	12/20/2017		15,000		30
4800, SWAP, USD 1 / (USD 0), : 61761DAD4	12/20/2017		5,000		10
4802, SWAP, USD 1 / (USD 0), : 912803DK6	12/20/2017		22,000		44
4804, SWAP, USD 1 / (USD 0), : 912828QN3	12/20/2017		25,000		50
4808, SWAP, USD 1 / (USD 0), : 912828QN3	12/20/2017		27,000		54
4809, SWAP, USD 1 / (USD 0), : 912828QN3	12/20/2017		27,000		54
4811, SWAP, USD 1 / (USD 0), : 912810QV3	12/20/2017		15,000		30
4812, SWAP, USD 1 / (USD 0), : 912803DP5	12/20/2017		22,000		44
4815, SWAP, USD 1 / (USD 0), : 92930RBB7	12/20/2017		12,500		8
4816, SWAP, USD 1 / (USD 0), : 31359MEL3	12/20/2017		20,000		(26	)
4817, SWAP, USD 1 / (USD 0), : 912810QH4	12/20/2017		20,000		(141	)
4818, SWAP, USD 1 / (USD 0), : 912803DK6	12/20/2017		20,000		(390	)
4820, SWAP, USD 1 / (USD 0), : 07401DAD3	12/20/2017		20,000		(514	)
4821, SWAP, USD 1 / (USD 0), : 20176AB1	12/20/2017		20,000		1
4822, SWAP, USD 5 / (USD 0), : 912803DS9	12/20/2017		20,000		2,810
4828, SWAP, USD 1 / (USD 0), : 912803DS9	12/20/2017		22,000		44
4829, SWAP, USD 1 / (USD 0), : 912828QN3	12/20/2017		10,000		497
4830, SWAP, USD 1 / (USD 0), : 912828QN3	12/20/2017		10,000		125
4832, SWAP, USD 1 / (USD 0), : 912803DP5	12/20/2017		20,000		40
4833, SWAP, USD 1 / (USD 0), : 912803DM2	12/20/2017		50,000		99
4834, SWAP, USD 1 / (USD 0), : 912803DM2	12/20/2017		20,000		1
4835, SWAP, USD 1 / (USD 0), : 912803DM2	12/20/2017		20,000		(527	)
4836, SWAP, USD 1 / (USD 0), : BAE2Z99E1	12/20/2017		25,000		50
4837, SWAP, USD 5 / (USD 0), : BRS0F7YG6	12/20/2017		25,000		3,512
4846, SWAP, USD 1 / (USD 0), : 31359MEL3	12/20/2016		19,000		(37	)
4856, SWAP, USD 1 / (USD 0), : 12624QAR4	12/20/2017		12,500		25
4860, SWAP, USD 1 / (USD 0), : 912803DJ9	12/20/2017		25,000		(32	)
4861, SWAP, USD 1 / (USD 0), : 912803BF9	12/20/2017		25,000		1
4862, SWAP, USD 1 / (USD 0), : 912803BJ1	12/20/2017		20,000		(141	)
4864, SWAP, USD 5 / (USD 0), : 912803DM2	12/20/2017		10,000		1,405
4875, SWAP, USD 1 / (USD 0), : 94987MAB7	12/20/2017		10,000		(97	)
50953, SWAP, USD 5 / (USD 0), : 912828PC8	12/20/2017		4,000		283
50956, SWAP, USD 5 / (USD 0), : 912828PC8	12/20/2017		4,000		356
50961, SWAP, USD 5 / (USD 0), : 912828PC8	12/20/2017		4,000		284
50965, SWAP, USD 5 / (USD 0), : 912828PC8	12/20/2017		4,000		364
50966, SWAP, USD 5 / (USD 0), : 912828PC8	12/20/2017		3,500		245
50967, SWAP, USD 5 / (USD 0), : 912828QN3	12/20/2017		500		35
		$	1,887,400	$	18,511

The Company had no written options for the year ended December 31, 2012. At December 31, 2011, the Company had written options with a fair value of $0 and average fair value for the year of $(32) as these positions were sold during 2011. The Company had no realized gains or losses for the year ended December 31, 2011 related to these options.

76

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2012, the Company had credit default swaps linked to collateralized debt obligations with a fair value of $0 and average fair value for the year of $(6,356). At December 31, 2011, the Company had credit default swaps linked to collateralized debt obligations with a fair value of $(11,786) and average fair value for the year of $(10,682). The Company recognized losses of $1,929 for the year ended December 31, 2012, while having no realized gains or losses for the years ended December 31, 2011 related to these credit default swaps.

At December 31, 2012 and 2011, the Company’s outstanding financial instruments with on and off balance sheet risks, shown in notional amounts, are summarized as follows:

	Notional Amount
	2012		2011
Interest rate and currency swaps:
Receive floating—pay floating	$	1,538,065	$	1,592,865
Receive fixed—pay floating		12,433,324		12,082,972
Receive floating—pay fixed		4,490,128		4,052,254
Receive fixed—pay fixed		1,403,729		732,548

The Company recognized net realized gains (losses) from futures contracts in the amount of $(93,808), $147,183 and $(120,396) for the years ended December 31, 2012, 2011 and 2010, respectively.

Open futures contracts at December 31, 2012 and 2011, were as follows:

Long/Short	Number of Contracts			Contract Type	Opening Fair Value			Year-End Fair Value
December 31, 2012
Short		(1,167	)	S&P 500 March 2013 Futures	$	(414,806	)	$	(414,314	)
Long		6,220		US Ultra Bond March 2013 Futures		1,030,465			1,011,333
Long/Short	Number of Contracts			Contract Type	Opening Fair Value			Year-End Fair Value
December 31, 2011
Short		(2,073	)	S&P 500 March 2012 Futures	$	(639,474	)	$	(649,159	)
Long		13,040		US Ultra Bond March 2012 Futures		2,055,916			2,085,177

77

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2012 and 2011, investments with an aggregate carrying value of $39,774,342 and $38,140,830, 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.

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
	2012			2011			2010
Direct premiums	$	13,426,938		$	13,297,032		$	10,763,441
Reinsurance assumed—non affiliates		1,751,054			1,710,756			1,652,588
Reinsurance assumed—affiliates		185,147			222,283			427,231
Reinsurance ceded—non affiliates		(3,985,049	)		(6,259,014	)		(1,042,739	)
Reinsurance ceded—affiliates		428,724			892,999			(2,635,402	)
Net premiums earned	$	11,806,814		$	9,864,056		$	9,165,119

The Company received reinsurance recoveries in the amount of $3,542,504, $2,756,316 and $2,580,994 during 2012, 2011 and 2010, respectively. At December 31, 2012 and 2011, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $618,208 and $705,476, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2012 and 2011 of $37,141,980 and $40,233,402, respectively.

The net amount of the reduction in surplus at December 31, 2012 and 2011, if all reinsurance agreements were cancelled, is $235,002 and $231,604, respectively.

78

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

During 2012, the Company recaptured various blocks of business that were previously reinsured on various bases to two separate affiliates. The Company received recapture consideration of $63,624, released the associated funds withheld liability of $1,516,317, recaptured life, annuity and claim reserves of $1,628,072, recaptured other assets of $5,428 and released into income from surplus a previously deferred unamortized gain from the original transaction in the amount of $24,215, resulting in a pre-tax loss of $18,488, which has been included in the statement of operations.

Subsequently, the Company ceded a portion of this recaptured business to two separate non-affiliated entities. The Company paid a reinsurance premium of $1,508,278 and a ceding commission of $41,149, released life, annuity and claim reserves of $1,510,206 and released an after-tax IMR liability associated with the block of business in the amount of $90,462, resulting in a net of tax gain on the transaction in the amount of $64,969 (IMR after-tax gain of $90,462, less gross loss on reinsurance of $39,221, taxed at 35%), which has been credited directly to unassigned surplus. This gain will be recognized in income as earnings emerge on the reinsured block of business. During 2012, the Company amortized $3,261 of this deferred gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

During 2012, the Company recaptured certain treaties associated with the divestiture of the Transamerica Reinsurance operations that were previously ceded to various non-affiliated entities so they could perform the ultimate novation, for which no net consideration was received. Life and claim reserves recaptured were $70,992 and other assets were recaptured of $67,295, resulting in a pre-tax loss of $3,697, which has been included in the statement of operations.

Subsequent to these recaptures, the Company novated certain unaffiliated treaties that were previously ceded by the Company to various non-affiliated entities, in which consideration paid was $30,509, life and claim reserves released were $153,224, other assets transferred were $72,723 and a previously deferred unamortized gain resulting from the original cession of this business of $19,068 ($12,394 net of tax) was released in to income, resulting in a pre-tax gain of $69,060, which has been included in the statement of operations.

The Company novated third party assumed retrocession agreements that were previously retroceded to a non-affiliate in which no net consideration was exchanged. Life and claim reserves were exchanged in the amount of $129,464 and other assets were exchanged in the amount of $10,748. As a result, there was no net financial impact from these transactions on a pre-tax basis, as assumed and ceded reserves along with other assets exchanged were impacted by equivalent amounts.

79

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

On April 26, 2011, Aegon N.V. announced the disposition of its life reinsurance operations, Transamerica Reinsurance, to SCOR, which was effective August 9, 2011. The life reinsurance business conducted by Transamerica Reinsurance was written through several of Aegon N.V.’s U.S. and international affiliates, all of which remain Aegon N.V. affiliates following the closing, except for Transamerica International Reinsurance Ireland, Limited (TIRI), an Irish reinsurance company. As a result of this transaction, the Company entered into a series of recapture and reinsurance agreements during the second, third and fourth quarters of 2011 which directly resulted in a pre-tax loss of $3,337,294 which was included in the statement of operations, and a net of tax gain of $2,694,506 which has been credited directly to unassigned surplus. These amounts include current year amortization of previously deferred gains, as well as releases of previously deferred gains from unassigned surplus into earnings. Additional information surrounding these transactions is outlined below.

During the second quarter of 2011, the Company recaptured business that was previously reinsured on various bases to affiliates. The Company paid recapture consideration of $320,103, released the associated funds withheld liability of $13,808,943, recaptured reserves of $15,167,234, recaptured other net assets of $26,634 and released a prior deferred gain related to the initial transactions in the amount of $295,083, resulting in a pre-tax loss of $1,356,677, which has been included the statement of operations. The Company amortized $10,044 prior to the recaptures in 2011 and $4,978 in 2010 of the original gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus. Additionally, another affiliate recaptured certain business that had been previously reinsured by the Company on a coinsurance basis. The Company received recapture consideration of $14,200, released assets of $16,678 and released reserves of $16,685, resulting in a pre-tax gain of $14,207, which has been included in the statement of operations.

Subsequently, also effective during the second quarter of 2011, the Company ceded a portion of the recaptured business above to an affiliate on a coinsurance and coinsurance funds withheld bases. The Company received an initial ceding commission of $40,097, established a funds withheld liability of $11,674,680, released reserves of $12,982,528, transferred other net assets of $364,305 and released an after-tax IMR liability in the amount of $146,227, resulting in a net of tax gain on the transactions in the amount of $785,593, which has been credited directly to unassigned surplus. During 2012 and 2011, the Company amortized $30,393 and $27,742, respectively, of this gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus. Also effective during the second quarter of 2011, the Company ceded a portion of the recaptured business above to a non-affiliate on a coinsurance basis. The Company paid an initial reinsurance premium of $1,486,693 and ceding commission of $21,270, released reserves and other liabilities of $1,486,692 and released an after-tax IMR liability associated with the block of business in the amount of $50,453, resulting in a net of tax gain on the transaction in the amount of $36,627, which has been credited directly to unassigned surplus. During 2012 and 2011, the Company amortized $5,140 and $1,888, respectively, of this gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

80

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

During the last half of 2011, the Company recaptured business that was associated with the divestiture of the Transamerica Reinsurance operations which was previously retroceded on a coinsurance basis to two affiliates. The Company received recapture consideration of $243,415, recaptured reserves of $2,168,882, recaptured other assets of $72,124 and released a prior deferred gain related to the initial transactions in the amount of $861,479, resulting in a pre-tax loss of $991,864, which has been included in the statement of operations. The Company also recaptured business from a non-affiliate in a similar transaction. The Company paid recapture consideration of $734,171, recaptured reserves of $335,286 and recaptured other net assets of $51,045, resulting in a pre-tax loss of $1,018,412, which has been included in the statement of operations.

Subsequently, during the last half of 2011, the Company ceded business that was associated with the divestiture of the Transamerica Reinsurance operations on a coinsurance basis to a non-affiliate. The Company paid a reinsurance premium of $273,178, received an initial ceding commission of $79,841, released reserves of $3,146,859, transferred other assets in the amount of $76,768 and released an after-tax IMR liability associated with the block of business in the amount of $33,567, resulting in a net of tax gain on the transaction of $1,903,457, which has been credited directly to unassigned surplus. During 2012 and 2011, respectively, the Company amortized $5,669 and $1,541 of the deferred gains related to the divestiture of the Transamerica Reinsurance operations to a non-affiliate into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

During the last half of 2011, the Company recaptured the business that was associated with the divestiture of the Transamerica Reinsurance operations from several Aegon N.V. affiliates. This business was subsequently ceded to SCOR entities and in addition, retrocession reinsurance treaties were executed. The Company assigned certain third party retrocession agreements to SCOR entities as a component of the divestiture of the Transamerica Reinsurance operations and the associated Master Retrocession Agreement. As a result, the unaffiliated retrocession reinsurance treaties were assigned from the Company to a SCOR entity, resulting in this risk being ceded to SCOR and subsequently to the unaffiliated third parties. The reserves and assets associated with these assignments were $80,301, where the counterparty’s net reserves ceded exchanged counterparties with no consideration exchanged, resulting in no net income or surplus impact to the Company.

Effective September 30, 2011, the Company recaptured business previously coinsured to an affiliate. The Company received recapture consideration of $180,000, recaptured reserves of $1,681,459 and released into income a previously deferred unamortized gain resulting from the original transaction in the amount of $710,014, resulting in a pre-tax loss of $791,445, which has been included in the statement of operations. Prior to the recaptures in 2011, the Company amortized $15,593 of the original gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus. Subsequently, the Company reinsured this business, along with

81

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

additional business, to a new affiliate on a coinsurance funds withheld basis. The Company established a funds withheld liability of $165,918 and released reserves of $1,714,045, resulting in a net of tax gain of $1,006,283, which has been credited directly to unassigned surplus. During 2011, the Company amortized $146 into earnings on a net of tax basis with a corresponding charge to unassigned surplus. The Company did not amortize any of this deferred gain into earnings during 2012.

Effective December 31, 2011, the Company recaptured business that was previously reinsured on a coinsurance funds withheld basis to a non-affiliate. The Company released the associated funds withheld liability of $6,689 and recaptured reserves of $13,812, resulting in a pre-tax loss of $7,123 which has been included in the statement of operations. Subsequently, the Company ceded that business, as well as additional in force business written and assumed by the Company and all new policies issued thereafter, on a coinsurance funds withheld basis to an affiliate. The Company established a funds withheld liability of $19,899 and released reserves of $34,659, resulting in a net of tax gain of $9,594, which has been credited directly to unassigned surplus. During 2012, the Company amortized $5,240 into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

Effective December 1, 2011, the Company recaptured a portion of a block of business that was previously reinsured on a coinsurance funds withheld basis to an affiliate. The Company received recapture consideration of $5,885, released the associated funds withheld liability of $2,518,729 and recaptured reserves of $2,511,973, resulting in a pre-tax gain of $12,641, which has been included in the statement of operations. In addition, the Company released into income a previously deferred unamortized gain resulting from the original transaction in the amount of $37,311, which included the recapture of IMR gains in the amount of $46,156 on an after-tax basis. Subsequently, on December 16, 2011, the Company ceded a portion of this business to a non-affiliate on a coinsurance basis. The Company paid a ceding commission of $19,537, transferred other assets in the amount of $2,497,844, released reserves of $2,497,844 and released an after-tax IMR liability associated with the block of business in the amount of $115,729, resulting in a net of tax gain in the amount of $103,030, which has been credited directly to unassigned surplus. During 2012 and 2011, respectively, the Company amortized $17,543 and $309 (net of tax) of this gain into earnings with a corresponding charge to unassigned surplus.

Effective December 16, 2011, the Company reinsured medium term notes to a non-affiliate on a coinsurance basis. The Company paid a ceding commission of $8,000, transferred other assets in the amount of $600,594 and released reserves of the same amount, resulting in a pre-tax loss of $8,000, which has been included in the statement of operations.

82

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Effective December 31, 2010, the Company entered into a reinsurance agreement with 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.

During 2010, the Company entered into assumption reinsurance agreements in which the Company ceded group annuity and accident and health policies to an affiliate. Reserves of $71,040 were ceded, net assets in the amount of $83,170 were transferred and $12,118 consideration was paid. 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.

During 2010, the Company entered into assumption reinsurance agreements in which the Company assumed term life policies from an affiliate. Life and claim reserves of $56,845 and $8,004, respectively, and other assets of $5,539 were assumed by the Company. The Company received consideration of $5,897. This transaction resulted in a net pre-tax loss to the Company of $53,413, which was reclassified to the balance sheet and presented as goodwill, as this transaction was deemed economic. The goodwill was to be amortized into operations over the period in which the Company benefits economically, not to exceed 10 years. Amortization of goodwill for the year ended December 31, 2010 was $2,651. This business was a component of the business that was moved as a result of the divestiture of the Transamerica Reinsurance operations to SCOR, effective August 9, 2011. As a result, the goodwill associated with this business was fully written off in 2011.

Effective December 31, 2008, the Company ceded certain term life business to 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 of tax gain of $314,079 resulting from this transaction was credited directly to unassigned surplus. During the first quarter of 2010, the Company amortized $6,969, on a net of tax basis of this gain back into earnings. Effective April 1, 2010, the Company recaptured these term life insurance policies from the affiliate. 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 the affiliate was released into the statement of operations in the amount of $454,900 ($295,685 after-tax).

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 another 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 of tax gain of $300,833, which was deferred directly into unassigned surplus. During 2010, the Company

83

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

amortized $11,200 of this gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus. With the recapture of this business during 2011, the remaining unamortized previously deferred gain associated with the original April 1, 2010 cession to the affiliate was released into income from surplus in the amount of $289,633 on a net of tax basis.

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 $1,130, $1,073 and $1,019 of the liability in 2012, 2011 and 2010, respectively.

During 2012, 2011 and 2010, the Company amortized deferred gains from reinsurance transactions occurring prior to 2010 of $28,528, $29,355 and $58,297, respectively, into earnings on a net of tax basis with a corresponding charge to unassigned surplus.

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 Transamerica Occidental Life Insurance Company’s (TOLIC) branch in Hong Kong. TOLIC merged in to the Company effective October 1, 2008. 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 $7,767, $8,053 and $8,335 was amortized during 2012, 2011 and 2010, 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 had been fully amortized at December 31, 2010. The accretion of the deferred liability was $1,433 for 2010.

84

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company reports a reinsurance deposit receivable of $167,223 and $156,620 as of December 31, 2012 and 2011, 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 2012, 2011 and 2010, the Company obtained letters of credit of $790,269, $841,411 and $804,032, 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.

85

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

7. Income Taxes

The net deferred income tax asset at December 31, 2012 and 2011 and the change from the prior year are comprised of the following components:

	December 31, 2012
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	1,112,530		$	339,889		$	1,452,419
Statutory Valuation Allowance Adjustment		—			—			—
Adjusted Gross Deferred Tax Assets		1,112,530			339,889			1,452,419
Deferred Tax Assets Nonadmitted		349,584			—			349,584
Subtotal (Net Deferred Tax Assets)		762,946			339,889			1,102,835
Deferred Tax Liabilities		320,092			129,770			449,862
Net Admitted Deferred Tax Assets	$	442,854		$	210,119		$	652,973
	December 31, 2011
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	1,195,054		$	426,364		$	1,621,418
Statutory Valuation Allowance Adjustment		—			—			—
Adjusted Gross Deferred Tax Assets		1,195,054			426,364			1,621,418
Deferred Tax Assets Nonadmitted		412,663			—			412,663
Subtotal (Net Deferred Tax Assets)		782,391			426,364			1,208,755
Deferred Tax Liabilities		329,726			162,421			492,147
Net Admitted Deferred Tax Assets	$	452,665		$	263,943		$	716,608
	Ordinary			Change Capital			Total
Gross Deferred Tax Assets	$	(82,524	)	$	(86,475	)	$	(168,999	)
Statutory Valuation Allowance Adjustment		—			—			—
Adjusted Gross Deferred Tax Assets		(82,524	)		(86,475	)		(168,999	)
Deferred Tax Assets Nonadmitted		(63,079	)		—			(63,079	)
Subtotal (Net Deferred Tax Assets)		(19,445	)		(86,475	)		(105,920	)
Deferred Tax Liabilities		(9,634	)		(32,651	)		(42,285	)
Net Admitted Deferred Tax Assets	$	(9,811	)	$	(53,824	)	$	(63,635	)

86

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The main components of deferred income tax amounts are as follows:

	Year Ended December 31
	2012			2011			Change
Deferred Tax Assets:
Ordinary:
Discounting of unpaid losses	$	2,848		$	3,007		$	(159	)
Policyholder reserves		351,951			455,136			(103,185	)
Investments		46,034			89,412			(43,378	)
Deferred acquisition costs		505,352			532,831			(27,479	)
Compensation and benefits accrual		31,260			24,149			7,111
Receivables—nonadmitted		28,128			23,090			5,038
Tax credit carry-forward		82,421			—			82,421
Assumption reinsurance		16,946			18,968			(2,022	)
Corporate Provision		892			2,295			(1,403	)
Other (including items <5% of ordinary tax assets)		46,698			46,166			532
Subtotal		1,112,530			1,195,054			(82,524	)
Nonadmitted		349,584			412,663			(63,079	)
Admitted ordinary deferred tax assets		762,946			782,391			(19,445	)
Capital:
Investments		339,889			426,364			(86,475	)
Subtotal		339,889			426,364			(86,475	)
Admitted deferred tax assets	$	1,102,835		$	1,208,755		$	(105,920	)
	Year Ended December 31
	2012			2011			Change
Deferred Tax Liabilities:
Ordinary:
Investments	$	103,663		$	144,993		$	(41,330	)
Excess capital to offset ordinary		147,464			104,004			43,460
§807(f) adjustment		52,736			61,737			(9,001	)
Separate account adjustments		16,229			17,572			(1,343	)
Other (including items <5% of total ordinary tax liabilities)		—			1,420			(1,420	)
Subtotal		320,092			329,726			(9,634	)
Capital:
Investments		277,234			265,968			11,266
Excess capital to offset ordinary		(147,464	)		(104,004	)		(43,460	)
Other (including items <5% of total capital tax liabilities)		—			457			(457	)
Subtotal		129,770			162,421			(32,651	)
Deferred tax liabilities		449,862			492,147			(42,285	)
Net deferred tax assets/liabilities	$	652,973		$	716,608		$	(63,635	)

87

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

As discussed in Note 1, for the year ended December 31, 2012 the Company admits deferred income tax assets pursuant to SSAP No. 101. The amount of admitted adjusted gross deferred income tax assets under each component of SSAP No. 101 is as follows:

	December 31, 2012
	Ordinary		Capital		Total
Admission Calculation Components SSAP No. 101
2(a)  Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	116,426	$	108,343	$	224,769
2(b)  Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)		326,428		101,776		428,204
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		326,428		101,776		428,204
2.      Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		717,641
2(c)  Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities		320,092		129,770		449,862
2(d)  Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	762,946	$	339,889	$	1,102,835
	December 31, 2011*
	Ordinary		Capital		Total
Admission Calculation Components SSAP No. 101
2(a)  Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	141,807	$	154,653	$	296,460
2(b)  Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)		310,858		109,291		420,149
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		310,858		109,291		420,149
2.      Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		700,221
2(c)  Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities		329,726		162,420		492,146
2(d)  Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	782,391	$	426,364	$	1,208,755

88

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

	Ordinary			Change Capital			Total
Admission Calculation Components SSAP No. 101
2(a)  Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	(25,381	)	$	(46,310	)	$	(71,691	)
2(b)  Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)		15,570			(7,515	)		8,055
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		15,570			(7,515	)		8,055
2.      Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX			XXX			17,420
2(c)  Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2(a) and 2(b) above) Offset by Gross Deferred Tax Liabilities		(9,634	)		(32,650	)		(42,284	)
2(d)  Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	(19,445	)	$	(86,475	)	$	(105,920	)

* 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.

89

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

	December 31
	2012			2011
Ratio Percentage Used To Determine Recovery Period and Threshold Limitation Amount		895	%		806	%
Amount of Adjusted Capital and Surplus Used To Determine Recovery Period and Threshold Limitation in 2(b)2 above	$	4,789,621		$	4,369,299

The impact of tax planning strategies at December 31, 2012 and 2011 was as follows:

	December 31, 2012
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs (% of Total Adjusted Gross DTAs)		0	%		30	%		7	%
Net Admitted Adjusted Gross DTAs (% of Total Net Admitted Adjusted Gross DTAs)		38	%		48	%		41	%

	December 31, 2011
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs (% of Total Adjusted Gross DTAs)		0	%		0	%		0	%
Net Admitted Adjusted Gross DTAs (% of Total Net Admitted Adjusted Gross DTAs)		69	%		41	%		59	%

	Ordinary Percent			Change Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs (% of Total Adjusted Gross DTAs)		0	%		30	%		7	%
Net Admitted Adjusted Gross DTAs (% of Total Net Admitted Adjusted Gross DTAs)		-31	%		7	%		-18	%

The Company’s tax planning strategies do not include the use of reinsurance-related tax planning strategies.

90

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Current income taxes incurred consist of the following major components:

	Year Ended December 31
	2012			2011			Change
Current Income Tax
Federal	$	(161,806	)	$	(174,039	)	$	12,233
Foreign		(698	)		(879	)		181
Subtotal		(162,504	)		(174,918	)		12,414
Federal income tax on net capital gains		94,705			185,043			(90,338	)
Federal and foreign income taxes incurred	$	(67,799	)	$	10,125		$	(77,924	)

	Year Ended December 31
	2011			2010			Change
Federal	$	(174,039	)	$	(268,109	)	$	94,070
Foreign		(879	)		(2,119	)		1,240
Subtotal		(174,918	)		(270,228	)		95,310
Federal income tax on net capital gains		185,043			450,184			(265,141	)
Federal and foreign income taxes incurred	$	10,125		$	179,956		$	(169,831	)

The Company did not report a valuation allowance for deferred income tax assets as of December 31, 2012 or 2011.

91

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate of 35% to income before tax as follows:

	Year Ended December 31
	2012			2011			2010
Current income taxes incurred	$	(67,799	)	$	10,125		$	179,956
Change in deferred income taxes		105,935			(136,907	)		126,689
(without tax on unrealized gains and losses)
Total income tax reported	$	38,136		$	(126,782	)	$	306,645
Income before taxes	$	795,047		$	(2,260,735	)	$	1,443,732
		35.00	%		35.00	%		35.00	%
Expected income tax expense (benefit) at 35% statutory rate	$	278,266		$	(791,257	)	$	505,306
Increase (decrease) in actual tax reported resulting from:
Dividends received deduction		(36,188	)		(31,014	)		(27,413	)
Tax credits		(58,619	)		(62,184	)		(57,815	)
Tax-exempt income		(27	)		(276	)		(90	)
Tax adjustment for IMR		(34,101	)		(133,408	)		(1,513	)
Surplus adjustment for inforce ceded		(14,483	)		863,606			(22,522	)
Nondeductible expenses		774			8,166			3,213
Deferred tax benefit on other items in surplus		(4,103	)		(15,569	)		35,989
Provision to return		(13,629	)		1,525			(5,730	)
Life-owned life insurance		(4,268	)		(3,786	)		(3,741	)
Dividends from certain foreign corporations		546			331			374
Statutory valuation allowance		—			—			(81,188	)
Prior period adjustment		(51,467	)		(26,684	)		(57,775	)
Pre-tax income of Single Member Liability Companies (SMLLC’s)		28,889			25,763			32,281
Transfer of basis		—			51,597			—
Intercompany dividends		(55,618	)		(11,653	)		(11,620	)
Partnership permanent adjustment		1,014			2,290			2,402
Other		1,150			(4,229	)		(3,513	)
Total income tax reported	$	38,136		$	(126,782	)	$	306,645

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

92

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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 2012.

As of December 31, 2012, the Company had an $82,421 tax credit carryforward available for tax purposes. As of December 31, 2011, the Company had no tax credit carryforwards. As of December 31, 2012 and 2011, the Company had no operating loss or capital loss carryforwards available for tax purposes.

The Company incurred income taxes of $24,337, $25,193 and $187,671 during 2012, 2011 and 2010, respectively, 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, 2012 and 2011 is $1,448 and $1,178, respectively. The total amount of tax contingencies that, if recognized, would affect the effective income tax rate is $1,448. The Company classifies interest and penalties related to income taxes as income tax expense. The Company’s interest (benefit) expense related to income taxes for the years ending December 31, 2012, 2011 and 2010 is $1,102, ($3,883) and ($12,048), respectively. The total interest payable balance as of December 31, 2012 and 2011 is $95 and $1,197, 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 undergoing final calculation at appeal. The examination for the years 2007 through 2008 has been completed and resulted in tax return adjustments that are currently being appealed. An examination is already in progress for the years 2009 and 2010. The Company believes that there are adequate defenses against or sufficient provisions established related to any open or contested tax positions.

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% of ordinary life insurance in force at December 31, 2012 and 2011.

93

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

For the years ended December 31, 2012, 2011 and 2010, premiums for life participating policies were $16,028, $17,183 and $18,274, 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 $8,651, $9,496 and $10,074 to policyholders during 2012, 2011 and 2010, 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 2012
	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal With fair value adjustment	$	1,613,239	$	—	$	—	$	1,613,239		2	%
At book value less surrender charge of 5% or more		570,607		—		—		570,607		1
At fair value		83,912		—		40,472,788		40,556,700		51
Total with adjustment or at fair value		2,267,758		—		40,472,788		42,740,546		54
At book value without adjustment (minimal or no charge or adjustment)		21,018,430		83,567		—		21,101,997		27
Not subject to discretionary withdrawal provision		15,474,341		65,241		36,789		15,576,371		19
Total annuity reserves and deposit liabilities		38,760,529		148,808		40,509,577		79,418,914		100	%
Less reinsurance ceded		17,304,424		—		—		17,304,424
Net annuity reserves and deposit liabilities	$	21,456,105	$	148,808	$	40,509,577	$	62,114,490

94

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

	December 31 2011
	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal With fair value adjustment	$	1,756,726	$	82,332	$	—	$	1,839,058		2	%
At book value less surrender charge of 5% or more		3,561,563		—		—		3,561,563		5
At fair value		77,738		—		33,124,204		33,201,942		44
Total with adjustment or at fair value		5,396,027		82,332		33,124,204		38,602,563		51
At book value without adjustment (minimal or no charge or adjustment)		19,838,059		—		—		19,838,059		26
Not subject to discretionary withdrawal provision		17,057,943		66,860		34,803		17,159,606		23
Total annuity reserves and deposit liabilities		42,292,029		149,192		33,159,007		75,600,228		100	%
Less reinsurance ceded		19,243,486		—		—		19,243,486
Net annuity reserves and deposit liabilities	$	23,048,543	$	149,192	$	33,159,007	$	56,356,742

Included in the liability for deposit-type contracts at December 31, 2012 and 2011 are $257,327 and $287,687, 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, 2012, the contractual maturities were as follows:

Year	Amount
2013	$	—
2014		257,327
2015		—
2016		—
2017		—
Thereafter		—

95

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company’s liability for deposit-type contracts includes GIC’s and funding agreements assumed from MLIC. The liabilities assumed are $1,659,668 and $1,721,235 at December 31, 2012 and 2011, 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 (continued)

(Dollars in Thousands, Except per Share amounts)

Information regarding the separate accounts of the Company as of and for the years ended December 31, 2012, 2011 and 2010 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, 2012	$	—	$	396	$	9,951	$	9,341,436	$	9,351,783
Reserves for separate accounts as of December 31, 2012 with assets at:
Fair value	$	—	$	22,152	$	43,089	$	43,514,998	$	43,580,239
Amortized cost		—		632,530		—		—		632,530
Total as of December 31, 2012	$	—	$	654,682	$	43,089	$	43,514,998	$	44,212,769
Reserves for separate accounts by withdrawal characteristics as of December 31, 2012:
Subject to discretionary withdrawal	$	—	$	—	$	—	$	—	$	—
With fair value adjustment		—		—		—		—		—
At fair value		—		—		—		43,478,209		43,478,209
At book value without fair value adjustment and with current surrender charge of less than 5%		—		632,530		—		—		632,530
Subtotal		—		632,530		—		43,478,209		44,110,739
Not subject to discretionary withdrawal		—		22,152		43,089		36,789		102,030
Total separate account liabilities at December 31, 2012	$	—	$	654,682	$	43,089	$	43,514,998	$	44,212,769

97

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

	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, 2011	$	—	$	226	$	9,994	$	9,381,447	$	9,391,667
Reserves for separate accounts as of December 31, 2011 with assets at:
Fair value	$	—	$	20,144	$	46,716	$	38,480,821	$	38,547,681
Amortized cost		—		610,951		—		—		610,951
Total as of December 31, 2011	$	—	$	631,095	$	46,716	$	38,480,821	$	39,158,632
Reserves for separate accounts by withdrawal characteristics as of December 31, 2011:
Subject to discretionary withdrawal	$	—	$	—	$	—	$	—	$	—
With fair value adjustment		—		82,332		—		—		82,332
At fair value		—		—		—		38,446,018		38,446,018
At book value without fair value adjustment and with current surrender charge of less than 5%		—		528,619		—		—		528,619
Subtotal		—		610,951		—		38,446,018		39,056,969
Not subject to discretionary withdrawal		—		20,144		46,716		34,803		101,663
Total separate account liabilities at December 31, 2011	$	—	$	631,095	$	46,716	$	38,480,821	$	39,158,632

98

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

	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

99

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

A reconciliation of the amounts transferred to and from the Company’s separate accounts is presented below:

	Year Ended December 31
	2012			2011			2010
Transfer as reported in the summary of operations of the separate accounts statement:
Transfers to separate accounts	$	9,341,436		$	9,383,003		$	6,369,429
Transfers from separate accounts		(7,125,237	)		(4,988,224	)		(4,622,672	)
Net transfers to separate accounts		2,216,199			4,394,779			1,746,757
Miscellaneous reconciling adjustments		817,767			772,389			154,773
Net transfers as reported in the statements of operations of the life, accident and health annual statement	$	3,033,966		$	5,167,168		$	1,901,530

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, 2012 and 2011, the Company’s separate account statement included legally insulated assets of $48,683,536 and $41,472,571, respectively. The assets legally insulated from general account claims at December 31, 2012 and 2011 are attributed to the following products:

	2012		2011
Group annuities	$	17,051,144	$	13,431,208
Variable annuities		25,509,279		21,175,176
Fixed universal life		610,585		593,065
Variable universal life		5,232,516		6,019,780
Variable life		171,104		158,187
Modified separate accounts		108,908		95,155
Total separate account assets	$	48,683,536	$	41,472,571

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, 2012 and 2011, the general account of the Company had a maximum guarantee for separate account liabilities of $2,158,788 and $2,870,835, respectively. To compensate the general account for the risk taken, the separate account paid risk charges of $180,634, $124,027 and $107,662 to the general account in 2012, 2011 and 2010, respectively. During the years ended December 31, 2012, 2011 and 2010, the general account of the Company had paid $61,745, $28,556 and $76,405, respectively, toward separate account guarantees.

100

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2012 and 2011, the Company reported guaranteed separate account assets at amortized cost in the amount of $619,780 and $616,365, respectively, based upon the prescribed practice granted by the State of Iowa as described in Note 2. These assets had a fair value of $693,462 and $658,928 at December 31, 2012 and 2011, respectively, which would have resulted in an unrealized gain of $73,682 and $42,563, respectively, had these assets been reported at fair value.

The Company does not participate in securities lending transactions within the separate account.

For variable annuities with guaranteed living benefits and variable annuities with minimum guaranteed death benefits the Company complies with 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).

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 (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2012 and 2011, 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, 2012
Minimum guaranteed death benefit	$	8,547,006	$	531,351	$	485,123
Minimum guaranteed income benefit		5,385,861		2,335,881		1,909,075
Guaranteed premium accumulation fund		188,099		17,064		—
Minimum guaranteed withdrawal benefit		16,521,109		33,780		1,757
December 31, 2011
Minimum guaranteed death benefit	$	8,216,929	$	699,903	$	620,534
Minimum guaranteed income benefit		5,564,562		2,886,163		2,364,909
Guaranteed premium accumulation fund		151,702		13,223		—
Minimum guaranteed withdrawal benefit		12,501,566		43,089		3,445

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, 2012 and 2011, 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, 2012
Life and annuity:
Ordinary first-year business	$	3,434		$	1,678	$	1,756
Ordinary renewal business		559,469			3,741		555,728
Group life business		4,716			2,760		1,956
Credit life business		1,322			—		1,322
Reinsurance ceded		(458,956	)		—		(458,956	)
		109,985			8,179		101,806
Accident and health		23,485			—		23,485
	$	133,470		$	8,179	$	125,291

102

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

	Gross			Loading		Net
December 31, 2011
Life and annuity:
Ordinary first-year business	$	5,227		$	244	$	4,983
Ordinary renewal business		586,196			4,737		581,459
Group life business		17,545			2,251		15,294
Credit life business		1,175			—		1,175
Reinsurance ceded		(492,439	)		—		(492,439	)
		117,704			7,232		110,472
Accident and health		20,711			—		20,711
	$	138,415		$	7,232	$	131,183

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. As of December 31, 2012 and 2011, the Company had insurance in force aggregating $95,138,990 and $119,164,169, 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 $676,461 and $817,479 to cover these deficiencies as of December 31, 2012 and 2011, 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 2013, without the prior approval of insurance regulatory authorities, is $1,174,090.

103

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company paid an ordinary common stock dividend of $159,410 to its common stock shareholder, Transamerica International Holdings, Inc. on December 21, 2012. The Company paid ordinary preferred stock dividends of $103,910 and $36,680 to its preferred stock shareholders, Transamerica Corporation and Aegon USA, LLC, respectively, on December 21, 2012.

The Company received common stock dividends of $150,000 on October 9, 2012 and $5,000 on June 1, 2012, from its subsidiaries, TLB and Garnet Assurance Corporation III, respectively.

The Company received a return of capital of $59 from its subsidiary, Life Investors Alliance, on September 30, 2011. The Company made an initial capital contribution of $255,000 to its subsidiary, TRRI, on September 27, 2011. This amount consisted of a $252,500 cash capital contribution and $2,500 in consideration for TRRI’s stock.

The Company received a capital contribution of $200,000 from its parent company, Transamerica International Holdings, Inc., on May 27, 2011.

The Company did not pay any dividends in 2011. 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 received preferred and common stock dividends of $430 and $37,370, respectively, from TFLIC on December 21, 2011.

Life and health insurance companies are subject to certain RBC requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life or health insurance company is to be determined based on the various risk factors related to it. At December 31, 2012, the Company meets the minimum RBC requirements.

On September 30, 2002, LIICA, which merged in to the Company effective October 2, 2008, 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.

104

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Additional information related to the outstanding surplus notes at December 31, 2012 and 2011 is as follows:

For Year Ending	Balance Outstanding		Interest Paid Current Year		Cumulative Interest Paid		Accrued Interest
2012	$	150,000	$	9,000	$	90,000	$	2,250
2011	$	150,000	$	9,000	$	81,000	$	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.

At December 31, 2012 and 2011, respectively, securities in the amount of $2,064,426 and $3,425,216 were on loan under securities lending agreements as a part of this program. At December 31, 2012, 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 $2,159,184 and $3,517,849 at December 31, 2012 and 2011, respectively.

105

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The contractual maturities of the securities lending collateral positions are as follows:

	Fair Value
Open	$	2,142,404
30 days or less		—
31 to 60 days		—
61 to 90 days		—
Greater than 90 days		—
Total		2,142,404
Securities received		—
Total collateral received	$	2,142,404

The Company receives primarily cash collateral in an amount in excess of the fair value of the securities lent. The Company reinvests the cash collateral into higher yielding securities than the securities which the Company has lent to other entities under the arrangement.

The maturity dates of the reinvested securities lending collateral are as follows:

	Amortized Cost		Fair Value
Open	$	191,636	$	191,636
30 days or less		820,819		820,815
31 to 60 days		762,167		762,167
61 to 90 days		257,173		257,173
91 to 120 days		97,568		97,568
1 to 2 years		17,117		17,133
2 to 3 years		13,738		12,692
Total		2,160,218		2,159,184
Securities received		—		—
Total collateral reinvested	$	2,160,218	$	2,159,184

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 $2,160,580 (fair value of $2,159,184) that are currently tradable securities that could be sold and used to pay for the $2,142,404 in collateral calls that could come due under a worst-case scenario.

106

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

11. Retirement and Compensation Plans

The Company’s employees participate in a qualified 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, and based upon actuarial participant benefit calculations. The benefits are based on years of service and the employee’s eligible annual compensation. Pension expenses were $23,983, $20,647 and $18,324 for the years ended December 31, 2012, 2011 and 2010, respectively. The plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974.

The Company’s employees participate in a contributory defined contribution plan sponsored by Aegon, which is qualified under Section 401(k) of the Internal Revenue 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 Income Security Act of 1974. Expense related to this plan was $11,501, $10,237 and $10,390 for the years ended December 31, 2012, 2011 and 2010, respectively.

Aegon sponsors supplemental retirement plans to provide the Company’s senior management with benefits in excess of normal pension benefits. The Company has no legal obligation for the plan. The plans are noncontributory and benefits are based on years of service and the employee’s eligible annual compensation. 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, 2012, 2011 and 2010 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 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. The Company has no legal obligation for the plan. Portions of the medical and dental plans are contributory. The expenses of the postretirement plans are allocated among the participating companies based on IAS 19 and based upon actuarial participant benefit calculations. The Company expensed $7,018, $3,951 and $4,609 related to these plans for the years ended December 31, 2012, 2011 and 2010, respectively.

107

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

12. Related Party Transactions

The Company shares certain officers, employees and general expenses with affiliated companies.

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 $209,527, $75,124 and $46,373 during 2012, 2011 and 2010, 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 $74,457, $60,237 and $51,177 for these services during 2012, 2011 and 2010, respectively.

Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $70,768, $79,375 and $67,790 for the years ended December 31, 2012, 2011 and 2010, respectively.

At December 31, 2012 and 2011, respectively, the Company reported a net amount of receivables (payables) from (to) affiliates of $44,001 and $(88,949). 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.

108

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2012, the Company had short-term intercompany notes receivable of $411,200 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
AEGON	$	20,900	August 30, 2013		0.12	%
AEGON		200,000	September 4, 2013		0.12
AEGON		22,800	September 24, 2013		0.12
AEGON		62,400	September 25, 2013		0.12
AEGON		32,500	October 25, 2013		0.12
AEGON		72,600	October 26, 2013		0.12

At December 31, 2011, the Company had short-term intercompany notes receivable of $185,100 as follows. This note was repaid prior to its due date.

Receivable from	Amount		Due By		Interest Rate
AEGON	$	185,100		December 28, 2012		0.12	%

During 2012, 2011 and 2010, the Company paid net interest of $112, $252 and $142, respectively, to affiliates.

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 $152,524 and $148,230 at December 31, 2012 and 2011, 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, 2012 and 2011, the cash surrender value of these policies was $156,981 and $153,701, respectively.

13. Commitments and Contingencies

At December 31, 2012 and 2011, the Company has mortgage loan commitments of $29,562 and $65,654, respectively. The Company has contingent commitments for $245,514 and $384,572 as of December 31, 2012 and 2011, respectively, to provide additional funding for various joint ventures, partnerships, and limited liability companies, which includes LIHTC commitments of $23,053 and $53,963, respectively.

109

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2012, the Company has private placement commitments outstanding of $9,979. There were no private placement commitments outstanding as of December 31, 2011.

There were no securities being acquired on a “to be announced” (TBA) basis as of December 31, 2012. At December 31, 2011, the net amount of securities being acquired on a TBA basis was $10,206.

The Company may pledge assets as collateral for derivative transactions. At December 31, 2012 and 2011, the Company has pledged invested assets with a carrying value of $68,410 and $161,542, respectively, and fair value of $76,776 and $184,431, respectively, in conjunction with these transactions.

Cash collateral received from derivative counterparties as well as the obligation to return the collateral is recorded on the Company’s balance sheet. The amount of cash collateral posted as of December 31, 2012 and 2011, respectively, was $971,255 and $1,094,873. In addition, securities in the amount of $619,879 and $382,069 were also posted to the Company as of December 31, 2012 and 2011, respectively, which were not included on the balance sheet of the Company as the Company does not have the ability to sell or repledge the collateral.

The Company may pledge assets as collateral for transactions involving funding agreements. At December 31, 2012 and 2011, the Company has pledged invested assets with a carrying amount of $95,275 and $138,841, respectively, and fair value of $97,707 and $138,667, respectively, in conjunction with these transactions.

The Company has provided back-stop guarantees for the performance of non-insurance affiliates or subsidiaries that are involved in the guaranteed sale of investments in low-income housing tax credit partnerships. The nature of the obligation is to provide third party investors with a minimum guaranteed annual and cumulative return on their contributed capital which is based on tax credits and tax losses generated from the low income housing tax credit partnerships. Guarantee payments arise if low income housing tax credit partnerships experience unexpected significant decreases in tax credits and tax losses or there are compliance issues with the partnerships. A significant portion of the remaining term of the guarantees is between 13-21 years. The Company did not recognize a liability for the low income housing tax credit guarantees due to the adoption of SSAP No. 5R at December 31, 2012 or 2011, as the maximum potential amount of future payments the Company could be required to make is immaterial to the Company’s financial results. In the event the Company is required to make a payment under this guarantee, the payment would be reflected in the Company’s financial statements as a decrease in net investment income. The maximum potential amount of future payments (undiscounted) that the Company could be required to make under these guarantees was $245 and $309 at December 31, 2012 and 2011, respectively. No payments are required as of December 31, 2012. The current assessment of risk of making payments under these guarantees is remote.

110

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company has guaranteed to the Monetary Authority of Singapore (MAS) that it will provide adequate funds to make up for any liquidity shortfall in its wholly-owned foreign life insurance subsidiary, TLB (Singapore Branch), and continue to meet, pay and settle all present and future obligations of TLB. As of December 31, 2012, there is no payment or performance risk because TLB has adequate liquidity as of this date.

The Company has guaranteed to the Hong Kong Insurance Authority that it will provide the financial support to TLB for maintaining TLB’s solvency at all times so as to enable TLB to promptly meet its obligations and liabilities. If at any time the value of TLB’s assets do not exceed its liabilities by the prevailing acceptable level of solvency, the Company will increase the paid up share capital of TLB or provide financial assistance to TLB to maintain the acceptable level of solvency, defined as net assets at one hundred and fifty percent of the required margin of solvency as stipulated under the Insurance Companies (Margin of Solvency) Regulation. As of December 31, 2012, there is no payment or performance risk because TLB is able to meet its obligations and has assets in excess of its liabilities by the prevailing level of solvency as of this date.

The Company has guaranteed that TLB will (1) maintain tangible net worth of at least equal to the greater of 165% of Standard & Poor’s (S&P) Risk-Based Capital and the minimum required by regulatory authorities in all jurisdictions in which TLB operates, (2) have, at all times, sufficient cash to pay all contractual obligations in a timely manner and (3) have a maximum operating leverage ratio of 20 times. TLIC can terminate this agreement upon thirty days written notice, but not until TLB attains a rating from S&P the same as without the support from this agreement, or the entire book of TLB business is transferred provided that it is transferred to an entity with a rating from S&P that is the same as or better than TLIC’s then current rating or AA, whichever is lower. As of December 31, 2012, there is no payment or performance risk because TLB has adequate tangible net worth, sufficient cash to meet its obligations and an operating leverage ratio not in excess of 20 times as of this date.

The Company is not able to estimate the financial statement impact or the maximum potential amount of future payments it could be required to make under these three guarantees as they are considered to be unlimited under the provisions of SSAP No. 5R.

The Company has provided a guarantee to TLB’s (Singapore Branch) policyholders. If TLB fails to pay a valid claim solely by reason of it becoming insolvent as defined by Bermuda law, then the Company shall pay directly to the policy owner or named beneficiary the amount of the valid claim. At December 31, 2012 and 2011, TLB holds related statutory-basis policy and claim reserves of $384,529 and $267,940, respectively, which would be the maximum potential amount of future payments the Company could be required to make under this guarantee. In the event the Company is required to make a payment under this guarantee, the payment would be reflected in the Company’s financial statements as an increase to incurred claims. As of December 31, 2012, there is no payment or performance risk because TLB is not insolvent as of this date.

111

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company did not recognize a liability for any of the TLB guarantees due to the adoption of SSAP No. 5R at December 31, 2012 or 2011, as a liability is not required for guarantees to or on behalf of a wholly-owned subsidiary. Management monitors TLB’s financial condition, and there are no indications that TLB will become insolvent. As such, management feels the risk of payment under these guarantees on behalf of TLB is remote.

The Company has provided guarantees 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. The guarantees made by the Company are specific to each structured settlement contract and vary in date and duration of the obligation. These are numerous and are backed by the reserves established by the Company to represent the present value of the future payments for those contracts. The statutory reserve established at December 31, 2012 and 2011 for the total payout block is $3,688,696 and $3,770,907, respectively. As this reserve is already recorded on the balance sheet of the Company, there was no additional liability recorded due to the adoption of SSAP No. 5R.

The following table provides an aggregate compilation of guarantee obligations as of December 31, 2012 and 2011:

	December 31
	2012		2011
Aggregate maximum potential of future payments of all guarantees (undiscounted)	$	384,774	$	268,249
Current liability recognized in financial statements:
Noncontingent liabilities		—		—
Contingent liabilities		—		—
Ultimate financial statement impact if action required:
Incurred claims		384,529		267,940
Other		245		309
Total impact if action required	$	384,774	$	268,249

112

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company has issued funding agreements to 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 FHLB are classified in the general account as it is a general obligation of the Company. Collateral is required by FHLB to support repayment of the funding agreements. In addition, FHLB requires their common stock to be purchased.

	Year Ended December 31
	2012		2011
FHLB stock purchased/owned as part of the agreement	$	137,938	$	160,188
Collateral pledged to the FHLB		3,185,216		3,099,800
Borrowing capacity currently available		5,865,876		6,764,980
Agreement General Account
Assets		2,568,722		2,499,839
Liabilities		1,975,268		2,475,393

The Company has issued synthetic GIC contracts to benefit plan sponsors totaling $2,545,786 and $1,848,101 as of December 31, 2012 and 2011, 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, 2012 and 2011.

As of December 31, 2012 and 2011, 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 $470 and $490, 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.

113

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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.

During 2010, 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 $26,107 and $33,490 and an offsetting premium tax benefit of $5,044 and $4,744 at December 31, 2012 and 2011, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund (benefit) expense was $(4,325), $(3,645) and $2,465, for the years ended December 31, 2012, 2011 and 2010, respectively.

14. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities

The Company has recorded liabilities of $89,724 and $88,828 for municipal repurchase agreements as of December 31, 2012 and 2011, respectively. The repurchase agreements are primarily collateralized by investment-grade corporate bonds with book values of $85,713 and $94,288, respectively, and fair values of $92,872 and $99,880, respectively, as of December 31, 2012 and 2011. These securities have maturity dates that range from 2013 to 2025.

114

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

For repurchase agreements, the Company rigorously manages asset/liability risks via an integrated risk management framework. The Company’s liquidity position is monitored constantly, and factors heavily in the management of the asset portfolio. Projections comparing liquidity needs to available resources in both adverse and routine scenarios are refreshed monthly. The results of these projections on time horizons ranging from seven days to sixteen months are the basis for the near-term liquidity planning. This liquidity model excludes new business (non applicable for the spread business), renewals and other sources of cash and assumes all liabilities are paid off on the earliest dates required. Interest rate risk is carefully managed, in part through rigorously defined and monitored derivatives programs.

At December 31, 2012, the Company had dollar repurchase agreements outstanding in the amount of $82,026. The Company did not participate in dollar repurchase agreements at December 31, 2011.

The contractual maturities of the dollar repurchase agreement positions are as follows:

	Fair Value
Open	$	85,269
30 days or less		—
31 to 60 days		—
61 to 90 days		—
Greater than 90 days		—
Total		85,269
Securities received		—
Total collateral received	$	85,269

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 2012 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		4	$	6,827	$	7,041	$	240
NAIC 4		12		17,865		18,792		949
NAIC 5		4		5,756		5,759		(28	)
NAIC 6		1		1,020		1,023		(40	)

115

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

15. 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 issued, 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). The Company has not identified any Type I or Type II subsequent events for the year ended December 31, 2012 through the date the financial statements are issued.

116

Transamerica Life Insurance Company

Summary of Investments – Other Than

Investments in Related Parties

(Dollars in Thousands)

December 31, 2012

SCHEDULE I

Type of Investment	Cost (1)		Fair Value		Amount at Which Shown in the Balance Sheet (2)
Fixed maturities
Bonds:
United States government and government agencies and authorities	$	3,944,595	$	4,798,184	$	3,944,753
States, municipalities and political subdivisions		765,707		838,916		765,556
Foreign governments		527,762		574,808		527,762
Hybrid securities		933,577		792,433		930,882
All other corporate bonds		30,667,839		33,740,350		30,512,613
Preferred stocks		111,506		111,258		111,471
Total fixed maturities		36,950,986		40,855,949		36,793,037
Equity securities
Common stocks:
Industrial, miscellaneous and all other		167,843		218,026		218,026
Total equity securities		167,843		218,026		218,026
Mortgage loans on real estate		5,730,665				5,730,665
Real estate		83,054				83,054
Policy loans		708,794				708,794
Other long-term investments		1,318,082				1,318,082
Receivable for Securities		4,475				4,475
Securities Lending		2,160,218				2,160,218
Cash, cash equivalents and short-term investments		3,974,902				3,974,902
Total investments	$	51,099,019			$	50,991,253

(1) Original cost of equity securities and, as to fixed maturities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts.

(2) United States government, state, municipal and political, hybrid and corporate bonds of $115,527 are held at fair value rather than amortized cost due to having an NAIC 6 rating. A preferred stock security is held at its fair value of $0 due to having an NAIC 6 rating.

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, 2012
Individual life	$	13,805,986	$	—	$	197,787	$	1,058,471	$	803,205	$	1,731,950	$	(1,363,563	)
Individual health		3,154,346		95,888		126,252		457,502		218,644		458,994		68,566
Group life and health		1,452,548		13,761		61,621		342,755		117,963		267,986		164,138
Annuity		15,866,274		—		22,285		9,948,086		1,589,715		5,569,306		5,850,131
	$	34,279,154	$	109,649	$	407,945	$	11,806,814	$	2,729,527	$	8,028,236	$	4,719,272
Year ended December 31, 2011
Individual life	$	13,797,712	$	—	$	179,695	$	242,721	$	767,798	$	1,288,152	$	934,829
Individual health		2,993,069		97,990		134,931		438,582		202,494		420,327		151,433
Group life and health		1,430,308		14,510		58,498		337,648		88,118		272,474		119,561
Annuity		16,637,184		—		23,495		8,845,105		1,557,448		5,006,408		6,597,799
	$	34,858,273	$	112,500	$	396,619	$	9,864,056	$	2,615,858	$	6,987,361	$	7,803,622
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		5,378,791		3,520,890
	$	36,326,852	$	118,067	$	517,353	$	9,165,119	$	2,919,171	$	8,036,692	$	4,895,163

* 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, 2012
Life insurance in force	$	455,851,953	$	987,454,502	$	666,160,317	$	134,557,768		495	%
Premiums:
Individual life		2,390,267		3,106,662		1,774,866		1,058,471		168	%
Individual health		531,328		153,252		79,426		457,502		17	%
Group life and health		452,512		129,841		20,084		342,755		6	%
Annuity		10,052,831		166,570		61,825		9,948,086		1	%
	$	13,426,938	$	3,556,325	$	1,936,201	$	11,806,814		16	%
Year ended December 31, 2011
Life insurance in force	$	452,085,562	$	1,075,361,646	$	732,908,307	$	109,632,223		669	%
Premiums:
Individual life	$	2,300,979	$	3,793,088	$	1,734,830	$	242,721		715	%
Individual health		535,034		215,579		119,127		438,582		27	%
Group life and health		417,156		109,724		30,216		337,648		9	%
Annuity		10,043,863		1,247,624		48,866		8,845,105		1	%
	$	13,297,032	$	5,366,015	$	1,933,039	$	9,864,056		20	%
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	%

119

FINANCIAL STATEMENTS

Transamerica Life Insurance Company

Separate Account VA EE

Years Ended December 31, 2012 and 2011

Transamerica Life Insurance Company

Separate Account VA EE

Financial Statements

Years Ended December 31, 2012 and 2011

Contents

Report of Independent Registered Public Accounting Firm	1
Financial Statements
Statements of Assets and Liabilities	2
Statements of Operations and Changes in Net Assets	6
Notes to Financial Statements	10

The Board of Directors and Contract Owners

Of Separate Account VA EE

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 EE (the Separate Account), comprised of subaccounts as listed in the accompanying statements of assets and liabilities, as of December 31, 2012, 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 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. Our procedures included confirmation of securities owned as of December 31, 2012 by correspondence with the fund companies or their 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 EE, at December 31, 2012, 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

Des Moines, Iowa

April 15, 2013

Transamerica Life Insurance Company

Separate Account VA EE

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Balanced		TA Vanguard ETF Index - Growth		TA PIMCO Total Return		TA AEGON U.S. Government Securities
	Subaccount		Subaccount		Subaccount		Subaccount
Assets
Investment in securities:
Number of shares		23,866,937.782		30,198,960.959		6,024,565.508		1,755,721.444
Cost	$	242,608,521	$	269,248,071	$	70,929,194	$	23,736,345
Investments in mutual funds, Level 1 quoted prices at net asset value	$	257,046,920	$	289,306,046	$	72,355,032	$	23,649,568
Receivable for units sold		—		225		—		—
Total assets		257,046,920		289,306,271		72,355,032		23,649,568
Liabilities
Payable for units redeemed		119		—		41		24
Total net assets	$	257,046,801	$	289,306,271	$	72,354,991	$	23,649,544
Net Assets:
Deferred annuity contracts terminable by owners	$	257,046,801	$	289,306,271	$	72,354,991	$	23,649,544
Total net assets	$	257,046,801	$	289,306,271	$	72,354,991	$	23,649,544
Accumulation units outstanding:
M&E - 0.85%		70,531,021		82,931,350		14,535,531		4,045,598
M&E - 1.00%		94,164,872		89,612,111		22,654,675		7,312,957
M&E - 1.20%		32,109,173		53,359,528		10,223,833		5,004,417
M&E - 1.35%		15,128,635		12,985,708		5,767,121		2,523,306
M&E - 1.55%		2,085,254		5,881,240		1,725,329		399,649
M&E - 1.65%		2,214,485		3,216,833		224,510		95,044
M&E - 2.00%		205,255		784,684		113,042		—
Accumulation unit value:
M&E - 0.85%	$	1.196245	$	1.172282	$	1.321428	$	1.232441
M&E - 1.00%	$	1.188527	$	1.164688	$	1.312836	$	1.224437
M&E - 1.20%	$	1.178285	$	1.154676	$	1.301568	$	1.213928
M&E - 1.35%	$	1.170642	$	1.147188	$	1.293147	$	1.206074
M&E - 1.55%	$	1.160611	$	1.137337	$	1.282050	$	1.195731
M&E - 1.65%	$	1.155628	$	1.132437	$	1.276566	$	1.190596
M&E - 2.00%	$	1.138414	$	1.115566	$	1.257509	$	1.172848

See accompanying notes.

2

Transamerica Life Insurance Company

Separate Account VA EE

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Money Market		TA AEGON U.S. Government Securities - PAM		TA ProFunds UltraBear - OAM		TA Efficient Markets
	Subaccount		Subaccount		Subaccount		Subaccount
Assets
Investment in securities:
Number of shares		12,073,180.340		50,158.355		540,050.330		1,783,398.295
Cost	$	12,073,180	$	681,173	$	1,393,861	$	23,783,366
Investments in mutual funds, Level 1 quoted prices at net asset value	$	12,073,180	$	675,633	$	1,269,118	$	24,343,387
Receivable for units sold		25		—		—		15
Total assets		12,073,205		675,633		1,269,118		24,343,402
Liabilities
Payable for units redeemed		—		—		20		—
Total net assets	$	12,073,205	$	675,633	$	1,269,098	$	24,343,402
Net Assets:
Deferred annuity contracts terminable by owners	$	12,073,205	$	675,633	$	1,269,098	$	24,343,402
Total net assets	$	12,073,205	$	675,633	$	1,269,098	$	24,343,402
Accumulation units outstanding:
M&E - 0.85%		2,906,115		3,881		2,016,550		8,541,708
M&E - 1.00%		2,840,975		20,299		2,058,208		5,292,155
M&E - 1.20%		1,887,217		70,572		1,236,163		3,315,445
M&E - 1.35%		4,856,207		17,783		233,435		2,866,461
M&E - 1.55%		88,273		450,667		59,607		428,708
M&E - 1.65%		19,966		—		—		882
M&E - 2.00%		3,618		—		—		762
Accumulation unit value:
M&E - 0.85%	$	0.969804	$	1.232441	$	0.227789	$	1.197235
M&E - 1.00%	$	0.963582	$	1.224437	$	0.226545	$	1.191717
M&E - 1.20%	$	0.955341	$	1.213928	$	0.224906	$	1.184372
M&E - 1.35%	$	0.949154	$	1.206074	$	0.223685	$	1.178904
M&E - 1.55%	$	0.940929	$	1.195731	$	0.222069	$	1.171675
M&E - 1.65%	$	0.936961	$	1.190596	$	—	$	1.168100
M&E - 2.00%	$	0.922950	$	1.172848	$	—	$	1.155634

See accompanying notes.

3

Transamerica Life Insurance Company

Separate Account VA EE

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Aggressive Growth		TA Vanguard ETF Index - Conservative		TA AEGON Tactical Vanguard ETF - Growth		TA AEGON Tactical Vanguard ETF - Balanced
	Subaccount		Subaccount		Subaccount		Subaccount
Assets
Investment in securities:
Number of shares		1,901,723.249		6,339,324.751		1,461,688.838		3,526,061.991
Cost	$	22,644,985	$	70,897,875	$	14,234,839	$	35,498,553
Investments in mutual funds, Level 1 quoted prices at net asset value	$	24,151,885	$	74,106,706	$	14,967,694	$	36,953,130
Receivable for units sold		9		—		—		18
Total assets		24,151,894		74,106,706		14,967,694		36,953,148
Liabilities
Payable for units redeemed		—		67		28		—
Total net assets	$	24,151,894	$	74,106,639	$	14,967,666	$	36,953,148
Net Assets:
Deferred annuity contracts terminable by owners	$	24,151,894	$	74,106,639	$	14,967,666	$	36,953,148
Total net assets	$	24,151,894	$	74,106,639	$	14,967,666	$	36,953,148
Accumulation units outstanding:
M&E - 0.85%		7,551,923		19,755,002		5,790,318		9,544,042
M&E - 1.00%		6,800,730		22,568,794		5,742,518		18,919,636
M&E - 1.20%		3,100,465		13,623,543		2,111,282		4,904,068
M&E - 1.35%		1,304,244		7,368,082		1,091,091		2,038,936
M&E - 1.55%		194,543		268,115		27,994		367,168
M&E - 1.65%		—		—		—		—
M&E - 2.00%		—		—		—		—
Accumulation unit value:
M&E - 0.85%	$	1.280375	$	1.172318	$	1.016311	$	1.035744
M&E - 1.00%	$	1.274471	$	1.166881	$	1.013783	$	1.033185
M&E - 1.20%	$	1.266624	$	1.159704	$	1.010446	$	1.029777
M&E - 1.35%	$	1.260785	$	1.154373	$	1.007957	$	1.027230
M&E - 1.55%	$	1.253052	$	1.147291	$	1.004652	$	1.023855
M&E - 1.65%	$	—	$	1.143767	$	—	$	—
M&E - 2.00%	$	—	$	1.131562	$	—	$	—

See accompanying notes.

4

Transamerica Life Insurance Company

Separate Account VA EE

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Tactical Vanguard ETF - Conservative		TA Legg Mason Dynamic Allocation - Balanced		TA Legg Mason Dynamic Allocation - Growth
	Subaccount		Subaccount		Subaccount
Assets
Investment in securities:
Number of shares		1,748,465.031		432,640.409		138,945.294
Cost	$	17,733,406	$	4,371,790	$	1,396,083
Investments in mutual funds, Level 1 quoted prices at net asset value	$	18,323,914	$	4,408,606	$	1,408,905
Receivable for units sold		29		—		—
Total assets		18,323,943		4,408,606		1,408,905
Liabilities
Payable for units redeemed		—		3		—
Total net assets	$	18,323,943	$	4,408,603	$	1,408,905
Net Assets:
Deferred annuity contracts terminable by owners	$	18,323,943	$	4,408,603	$	1,408,905
Total net assets	$	18,323,943	$	4,408,603	$	1,408,905
Accumulation units outstanding:
M&E - 0.85%		4,521,405		1,653,648		422,293
M&E - 1.00%		8,353,143		2,046,192		572,601
M&E - 1.20%		2,510,039		221,723		182,068
M&E - 1.35%		2,118,463		354,143		186,940
M&E - 1.55%		131,310		79,322		35,200
M&E - 1.65%		—		—		—
M&E - 2.00%		—		—		—
Accumulation unit value:
M&E - 0.85%	$	1.042303	$	1.013254	$	1.008284
M&E - 1.00%	$	1.039717	$	1.012242	$	1.007283
M&E - 1.20%	$	1.036287	$	1.010907	$	1.005947
M&E - 1.35%	$	1.033744	$	1.009910	$	1.004945
M&E - 1.55%	$	1.030348	$	1.008581	$	1.003629
M&E - 1.65%	$	—	$	—	$	—
M&E - 2.00%	$	—	$	—	$	—

See accompanying notes.

5

Transamerica Life Insurance Company

Separate Account VA EE

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA Vanguard ETF Index - Balanced			TA Vanguard ETF Index - Growth			TA PIMCO Total Return			TA AEGON U.S. Government Securities
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	107,712,382		$	197,877,451		$	31,501,217		$	12,334,877
Investment income:
Dividends		1,667,652			3,422,400			981,717			349,032
Investment expenses:
Mortality and expense risk and other charges		1,484,105			2,365,374			426,350			159,513
Net investment income (loss)		183,547			1,057,026			555,367			189,519
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		1,768,062			2,476,023			1,118,529			237,229
Realized gain (loss) on investments		3,498,545			4,749,548			(16,986	)		(100,448	)
Net realized capital gains (losses) on investments		5,266,607			7,225,571			1,101,543			136,781
Net change in unrealized appreciation (depreciation)		(5,537,903	)		(14,784,317	)		207,202			553,526
Net gain (loss) on investment		(271,296	)		(7,558,746	)		1,308,745			690,307
Increase (decrease) in net assets from operations		(87,749	)		(6,501,720	)		1,864,112			879,826
Increase (decrease) in net assets from contract transactions		82,804,761			42,438,199			19,477,024			8,547,245
Total increase (decrease) in net assets		82,717,012			35,936,479			21,341,136			9,427,071
Net Assets as of December 31, 2011	$	190,429,394		$	233,813,930		$	52,842,353		$	21,761,948
Investment income:
Dividends		2,762,906			4,381,743			2,566,564			331,805
Investment expenses:
Mortality and expense risk and other charges		2,275,438			2,780,482			649,602			215,501
Net investment income (loss)		487,468			1,601,261			1,916,962			116,304
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		5,627,093			22,350,583			—			539,506
Realized gain (loss) on investments		1,309,880			5,116,394			455,922			431,576
Net realized capital gains (losses) on investments		6,936,973			27,466,977			455,922			971,082
Net change in unrealized appreciation (depreciation)		8,081,517			(3,639,447	)		1,185,512			(308,819	)
Net gain (loss) on investment		15,018,490			23,827,530			1,641,434			662,263
Increase (decrease) in net assets from operations		15,505,958			25,428,791			3,558,396			778,567
Increase (decrease) in net assets from contract transactions		51,111,449			30,063,550			15,954,242			1,109,029
Total increase (decrease) in net assets		66,617,407			55,492,341			19,512,638			1,887,596
Net Assets as of December 31, 2012	$	257,046,801		$	289,306,271		$	72,354,991		$	23,649,544

See accompanying notes.

⁽¹⁾  See footnote 1

6

Transamerica Life Insurance Company

Separate Account VA EE

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA AEGON Money Market			TA AEGON U.S. Government Securities - PAM			TA ProFunds UltraBear - OAM			TA Efficient Markets
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	9,633,902		$	—		$	33,012		$	5,816,052
Investment income:
Dividends		655			12,686			—			109,974
Investment expenses:
Mortality and expense risk and other charges		138,404			2,604			9,663			124,430
Net investment income (loss)		(137,749	)		10,082			(9,663	)		(14,456	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			8,622			—			204,695
Realized gain (loss) on investments		—			(1,277	)		(253,887	)		30,044
Net realized capital gains (losses) on investments		—			7,345			(253,887	)		234,739
Net change in unrealized appreciation (depreciation)		—			(9,469	)		(500,709	)		(850,165	)
Net gain (loss) on investment		—			(2,124	)		(754,596	)		(615,426	)
Increase (decrease) in net assets from operations		(137,749	)		7,958			(764,259	)		(629,882	)
Increase (decrease) in net assets from contract transactions		5,704,770			664,577			3,016,340			12,004,319
Total increase (decrease) in net assets		5,567,021			672,535			2,252,081			11,374,437
Net Assets as of December 31, 2011	$	15,200,923		$	672,535		$	2,285,093		$	17,190,489
Investment income:
Dividends		558			18,470			—			305,015
Investment expenses:
Mortality and expense risk and other charges		120,758			9,511			15,926			223,116
Net investment income (loss)		(120,200	)		8,959			(15,926	)		81,899
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			30,031			—			867,039
Realized gain (loss) on investments		—			(23,243	)		(1,233,697	)		154,380
Net realized capital gains (losses) on investments		—			6,788			(1,233,697	)		1,021,419
Net change in unrealized appreciation (depreciation)		—			3,929			380,277			1,070,648
Net gain (loss) on investment		—			10,717			(853,420	)		2,092,067
Increase (decrease) in net assets from operations		(120,200	)		19,676			(869,346	)		2,173,966
Increase (decrease) in net assets from contract transactions		(3,007,518	)		(16,578	)		(146,649	)		4,978,947
Total increase (decrease) in net assets		(3,127,718	)		3,098			(1,015,995	)		7,152,913
Net Assets as of December 31, 2012	$	12,073,205		$	675,633		$	1,269,098		$	24,343,402

See accompanying notes.

⁽¹⁾  See footnote 1

7

Transamerica Life Insurance Company

Separate Account VA EE

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA Vanguard ETF Index - Aggressive Growth			TA Vanguard ETF Index - Conservative			TA AEGON Tactical Vanguard ETF - Growth			TA AEGON Tactical Vanguard ETF - Balanced
	Subaccount			Subaccount			Subaccount(1)			Subaccount(1)
Net Assets as of January 1, 2011	$	7,202,035		$	19,439,626		$	—		$	—
Investment income:
Dividends		109,063			267,587			—			—
Investment expenses:
Mortality and expense risk and other charges		143,534			367,314			8,727			14,843
Net investment income (loss)		(34,471	)		(99,727	)		(8,727	)		(14,843	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		6,023			118,878			—			—
Realized gain (loss) on investments		323,578			220,830			(14,578	)		(581	)
Net realized capital gains (losses) on investments		329,601			339,708			(14,578	)		(581	)
Net change in unrealized appreciation (depreciation)		(1,375,993	)		316,971			892			44,868
Net gain (loss) on investment		(1,046,392	)		656,679			(13,686	)		44,287
Increase (decrease) in net assets from operations		(1,080,863	)		556,952			(22,413	)		29,444
Increase (decrease) in net assets from contract transactions		10,068,594			32,444,065			3,079,053			5,449,717
Total increase (decrease) in net assets		8,987,731			33,001,017			3,056,640			5,479,161
Net Assets as of December 31, 2011	$	16,189,766		$	52,440,643		$	3,056,640		$	5,479,161
Investment income:
Dividends		227,270			692,022			73,931			35,820
Investment expenses:
Mortality and expense risk and other charges		211,987			666,466			91,056			219,830
Net investment income (loss)		15,283			25,556			(17,125	)		(184,010	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		331,578			619,179			—			27,014
Realized gain (loss) on investments		217,741			634,946			28,046			22,591
Net realized capital gains (losses) on investments		549,319			1,254,125			28,046			49,605
Net change in unrealized appreciation (depreciation)		2,236,894			2,099,378			731,963			1,409,709
Net gain (loss) on investment		2,786,213			3,353,503			760,009			1,459,314
Increase (decrease) in net assets from operations		2,801,496			3,379,059			742,884			1,275,304
Increase (decrease) in net assets from contract transactions		5,160,632			18,286,937			11,168,142			30,198,683
Total increase (decrease) in net assets		7,962,128			21,665,996			11,911,026			31,473,987
Net Assets as of December 31, 2012	$	24,151,894		$	74,106,639		$	14,967,666		$	36,953,148

See accompanying notes.

⁽¹⁾  See footnote 1

8

Transamerica Life Insurance Company

Separate Account VA EE

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA AEGON Tactical Vanguard ETF - Conservative			TA Legg Mason Dynamic Allocation - Balanced			TA Legg Mason Dynamic Allocation - Growth
	Subaccount(1)			Subaccount(1)			Subaccount(1)
Net Assets as of January 1, 2011	$	—		$	—		$	—
Investment income:
Dividends		—			—			—
Investment expenses:
Mortality and expense risk and other charges		16,671			—			—
Net investment income (loss)		(16,671	)		—			—
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—
Realized gain (loss) on investments		(17,527	)		—			—
Net realized capital gains (losses) on investments		(17,527	)		—			—
Net change in unrealized appreciation (depreciation)		91,462			—			—
Net gain (loss) on investment		73,935			—			—
Increase (decrease) in net assets from operations		57,264			—			—
Increase (decrease) in net assets from contract transactions		6,577,949			—			—
Total increase (decrease) in net assets		6,635,213			—			—
Net Assets as of December 31, 2011	$	6,635,213		$	—		$	—
Investment income:
Dividends		56,521			—			—
Investment expenses:
Mortality and expense risk and other charges		138,104			10,259			3,569
Net investment income (loss)		(81,583	)		(10,259	)		(3,569	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		77,081			—			—
Realized gain (loss) on investments		192,072			762			83
Net realized capital gains (losses) on investments		269,153			762			83
Net change in unrealized appreciation (depreciation)		499,046			36,816			12,822
Net gain (loss) on investment		768,199			37,578			12,905
Increase (decrease) in net assets from operations		686,616			27,319			9,336
Increase (decrease) in net assets from contract transactions		11,002,114			4,381,284			1,399,569
Total increase (decrease) in net assets		11,688,730			4,408,603			1,408,905
Net Assets as of December 31, 2012	$	18,323,943		$	4,408,603		$	1,408,905

See accompanying notes.

⁽¹⁾  See footnote 1

9

Transamerica Life Insurance Company

Separate Account VA EE

Notes to Financial Statements

December 31, 2012

1. Organization and Summary of Significant Accounting Policies

Organization

Separate Account VA EE (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 Principium^SM II Variable Annuity.

The TA AEGON U.S. Government Securities-Portfolio Asset Manager (PAM Fund) and the TA Profunds UltraBear-Open Allocation Method (OAM Fund) are included in the Subaccount portfolio only to facilitate a contract owner purchase option.

Subaccount Investment by Mutual Fund:

Subaccount	Mutual Fund
Transamerica Series Trust-Service Class	Transamerica Series Trust-Service Class
TA Vanguard ETF Index - Balanced	Transamerica Index 50 VP
TA Vanguard ETF Index - Growth	Transamerica Index 75 VP
TA PIMCO Total Return	Transamerica PIMCO Total Return VP
TA AEGON U.S. Government Securities	Transamerica AEGON U.S. Government Securities VP
TA AEGON Money Market	Transamerica AEGON Money Market VP
TA AEGON U.S. Government Securities - PAM	Transamerica AEGON U.S. Government Securities VP
TA ProFunds UltraBear - OAM	Transamerica ProFunds UltraBear VP
TA Efficient Markets	Transamerica Efficient Markets VP
TA Vanguard ETF Index - Aggressive Growth	Transamerica Index 100 VP
TA Vanguard ETF Index - Conservative	Transamerica Index 35 VP
TA AEGON Tactical Vanguard ETF - Growth	Transamerica AEGON Active Asset Allocation - Moderate Growth VP
TA AEGON Tactical Vanguard ETF - Balanced	Transamerica AEGON Active Asset Allocation - Moderate VP
TA AEGON Tactical Vanguard ETF - Conservative	Transamerica AEGON Active Asset Allocation - Conservative VP
TA Legg Mason Dynamic Allocation - Balanced	Transamerica Legg Mason Dynamic Allocation - Balanced VP
TA Legg Mason Dynamic Allocation - Growth	Transamerica Legg Mason Dynamic Allocation - Growth VP

Each period reported on reflects a full twelve month period except as follows:

Subaccount	Inception Date
TA Legg Mason Dynamic Allocation - Balanced	May 1, 2012
TA Legg Mason Dynamic Allocation - Growth	May 1, 2012
TA AEGON Tactical Vanguard ETF - Growth	May 2, 2011
TA AEGON Tactical Vanguard ETF - Balanced	May 2, 2011
TA AEGON Tactical Vanguard ETF - Conservative	May 2, 2011
TA Vanguard ETF Index - Aggressive Growth	November 23, 2009
TA Vanguard ETF Index - Conservative	November 23, 2009
TA Efficient Markets	November 19, 2009
TA ProFunds UltraBear - OAM	May 1, 2009

Each 2008 period reported reflects activity from inception date of May 31,2008 through December 31, 2008.

10

Transamerica Life Insurance Company

Separate Account VA EE

Notes to Financial Statements

December 31, 2012

1. Organization and Summary of Significant Accounting Policies (continued)

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, 2012.

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

Dividend Income

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

Accounting Policy

The financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable annuity separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.

In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, authoritative guidance that clarifies and changes fair value measurement and disclosure requirements. This guidance expands existing disclosure requirements for fair value measurements and includes other amendments but does not require additional fair value measurements. This guidance is effective for annual periods beginning on or after December 15, 2011, which for the Separtate Account was January 1, 2012. The adoption did not have a material impact on the financial statements.

11

Transamerica Life Insurance Company

Separate Account VA EE

Notes to Financial Statements

December 31, 2012

2. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2012 were as follows:

Subaccount	Purchases		Sales
TA Vanguard ETF Index - Balanced	$	62,929,337	$	5,703,246
TA Vanguard ETF Index - Growth		70,217,490		16,202,329
TA PIMCO Total Return		25,217,978		7,346,751
TA AEGON U.S. Government Securities		23,901,699		22,136,844
TA AEGON Money Market		14,370,708		17,498,428
TA AEGON U.S. Government Securities - PAM		1,567,051		1,544,639
TA ProFunds UltraBear - OAM		3,169,760		3,332,320
TA Efficient Markets		7,888,204		1,960,333
TA Vanguard ETF Index - Aggressive Growth		8,554,723		3,047,239
TA Vanguard ETF Index - Conservative		24,370,969		5,439,254
TA AEGON Tactical Vanguard ETF - Growth		12,196,600		1,045,558
TA AEGON Tactical Vanguard ETF - Balanced		30,778,758		737,093
TA AEGON Tactical Vanguard ETF - Conservative		14,335,539		3,337,955
TA Legg Mason Dynamic Allocation - Balanced		4,411,413		40,385
TA Legg Mason Dynamic Allocation - Growth		1,398,151		2,151

12

Transamerica Life Insurance Company

Separate Account VA EE

Notes to Financial Statements

3. Change in Units

The changes in units outstanding were as follows:

	Year ended December 31,
	2012								2011
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA Vanguard ETF Index - Balanced		43,893,090		461,965			44,355,055			75,748,076		(1,520,505	)		74,227,571
TA Vanguard ETF Index - Growth		34,175,328		(7,518,119	)		26,657,209			46,941,491		(8,788,012	)		38,153,479
TA PIMCO Total Return		14,148,809		(1,748,295	)		12,400,514			12,886,727		3,165,663			16,052,390
TA AEGON U.S. Government Securities		19,356,310		(18,441,640	)		914,670			20,886,627		(13,553,048	)		7,333,579
TA AEGON Money Market		15,922,919		(18,990,691	)		(3,067,772	)		16,033,241		(10,191,911	)		5,841,330
TA AEGON U.S. Government Securities - PAM		—		(8,242	)		(8,242	)		—		571,444			571,444
TA ProFunds UltraBear - OAM		—		(1,447,036	)		(1,447,036	)		—		6,970,103			6,970,103
TA Efficient Markets		4,528,784		(112,199	)		4,416,585			9,370,897		1,406,469			10,777,366
TA Vanguard ETF Index - Aggressive Growth		5,102,778		(820,200	)		4,282,578			10,590,809		(2,127,408	)		8,463,401
TA Vanguard ETF Index - Conservative		17,429,541		(1,312,578	)		16,116,963			29,305,607		189,131			29,494,738
TA AEGON Tactical Vanguard ETF - Growth		9,001,043		2,450,021			11,451,064			2,627,223		684,916			3,312,139
TA AEGON Tactical Vanguard ETF - Balanced		26,608,904		3,476,525			30,085,429			4,896,278		792,143			5,688,421
TA AEGON Tactical Vanguard ETF - Conservative		10,141,961		744,186			10,886,147			5,984,416		763,797			6,748,213
TA Legg Mason Dynamic Allocation - Balanced		3,765,245		589,783			4,355,028			—		—			—
TA Legg Mason Dynamic Allocation - Growth		1,271,950		127,152			1,399,102			—		—			—

13

Transamerica Life Insurance Company

Separate Account VA EE

Notes to Financial Statements

December 31, 2012

4. Financial Highlights

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

						Unit Fair Value																Total Return***
						Corresponding										Expense						Corresponding
						to Lowest to							Investment			Ratio**						to Lowest to
	Year					Highest					Net		Income			Lowest to						Highest
Subaccount	Ended			Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA Vanguard ETF Index - Balanced
		12/31/2012			216,438,695	$	1.20	to	$	1.14	$	257,046,801		1.24	%		0.85	%	to	2.00	%		7.48	%	to	6.26	%
		12/31/2011			172,083,640		1.11	to		1.07		190,429,394		1.15			0.85		to	2.00			0.61		to	(0.52	)
		12/31/2010			97,856,069		1.11	to		1.08		107,712,382		1.19			0.85		to	2.00			9.76		to	8.52
		12/31/2009			57,526,326		1.01	to		0.99		57,787,433		0.35			0.85		to	2.00			15.55		to	14.25
		12/31/2008	(1)		6,721,229		0.87	to		0.87		5,857,273		—			0.85		to	2.00			(12.77	)	to	(13.14	)
TA Vanguard ETF Index - Growth
		12/31/2012			248,771,454		1.17	to		1.12		289,306,271		1.65			0.85		to	2.00			10.61		to	9.36
		12/31/2011			222,114,245		1.06	to		1.02		233,813,930		1.51			0.85		to	2.00			(1.97	)	to	(3.07	)
		12/31/2010			183,960,766		1.08	to		1.05		197,877,451		1.18			0.85		to	2.00			12.05		to	10.79
		12/31/2009			131,109,691		0.96	to		0.95		126,109,768		0.46			0.85		to	2.00			22.14		to	20.76
		12/31/2008	(1)		27,934,159		0.79	to		0.79		22,046,229		—			0.85		to	2.00			(21.01	)	to	(21.34	)
TA PIMCO Total Return
		12/31/2012			55,244,041		1.32	to		1.26		72,354,991		4.17			0.85		to	2.00			6.41		to	5.21
		12/31/2011			42,843,527		1.24	to		1.20		52,842,353		2.42			0.85		to	2.00			5.06		to	3.88
		12/31/2010			26,791,137		1.18	to		1.15		31,501,217		4.33			0.85		to	2.00			6.03		to	4.84
		12/31/2009			15,676,474		1.11	to		1.10		17,413,620		8.44			0.85		to	2.00			14.78		to	13.48
		12/31/2008	(1)		1,379,500		0.97	to		0.97		1,338,692		0.02			0.85		to	2.00			(2.88	)	to	(3.28	)
TA AEGON U.S. Government Securities
		12/31/2012			19,380,971		1.23	to		1.17		23,649,544		1.59			0.85		to	2.00			3.98		to	2.80
		12/31/2011			18,466,301		1.19	to		1.14		21,761,948		2.24			0.85		to	2.00			6.38		to	5.19
		12/31/2010			11,132,722		1.11	to		1.08		12,334,877		3.25			0.85		to	2.00			3.35		to	2.18
		12/31/2009			6,996,831		1.08	to		1.06		7,520,085		2.34			0.85		to	2.00			3.32		to	2.15
		12/31/2008	(1)		1,540,172		1.04	to		1.04		1,605,090		—			0.85		to	2.00			4.35		to	3.91
TA AEGON Money Market
		12/31/2012			12,602,371		0.97	to		0.92		12,073,205		—			0.85		to	2.00			(0.84	)	to	(1.97	)
		12/31/2011			15,670,143		0.98	to		0.94		15,200,923		—			0.85		to	2.00			(0.84	)	to	(1.95	)
		12/31/2010			9,828,813		0.99	to		0.96		9,633,902		0.01			0.85		to	2.00			(0.84	)	to	(1.96	)
		12/31/2009			7,065,013		0.99	to		0.98		7,000,403		0.02			0.85		to	2.00			(0.83	)	to	(1.95	)
		12/31/2008	(1)		2,152,276		1.00	to		1.00		2,156,006		0.34			0.85		to	2.00			0.30		to	(0.12	)
TA AEGON U.S. Government Securities - PAM
		12/31/2012			563,202		1.23	to		1.17		675,633		2.63			0.85		to	2.00			3.98		to	2.80
		12/31/2011			571,444		1.19	to		1.14		672,535		5.40			0.85		to	2.00			6.38		to	5.19
		12/31/2010			—		1.11	to		1.08		—		5.71			0.85		to	2.00			3.35		to	2.18
		12/31/2009			8,105		1.08	to		1.06		8,721		2.26			0.85		to	2.00			3.32		to	2.15
		12/31/2008	(1)		9,281		1.04	to		1.04		9,680		—			0.85		to	2.00			4.35		to	3.91

14

Transamerica Life Insurance Company

Separate Account VA EE

Notes to Financial Statements

December 31, 2012

4. Financial Highlights (continued)

						Unit Fair Value																Total Return***
						Corresponding										Expense						Corresponding
						to Lowest to							Investment			Ratio**						to Lowest to
	Year					Highest					Net		Income			Lowest to						Highest
Subaccount	Ended			Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA ProFunds UltraBear - OAM
		12/31/2012			5,603,963	$	0.23	to	$	0.22	$	1,269,098		—	%		0.85	%	to	1.55	%		(30.03	)%	to	(30.52	)%
		12/31/2011			7,050,999		0.33	to		0.32		2,285,093		—			0.85		to	1.55			(20.62	)	to	(21.17	)
		12/31/2010			80,896		0.41	to		0.41		33,012		—			0.85		to	1.55			(27.38	)	to	(27.88	)
		12/31/2009	(1)		28,344		0.56	to		0.56		15,985		—			0.85		to	1.55			(43.52	)	to	(43.78	)
TA Efficient Markets
		12/31/2012			20,446,121		1.20	to		1.16		24,343,402		1.41			0.85		to	2.00			11.25		to	9.99
		12/31/2011			16,029,536		1.08	to		1.05		17,190,489		0.88			0.85		to	2.00			(3.01	)	to	(4.10	)
		12/31/2010			5,252,170		1.11	to		1.10		5,816,052		0.73			0.85		to	2.00			11.43		to	10.17
		12/31/2009	(1)		71,782		1.00	to		0.99		71,464		—			0.85		to	2.00			0.64		to	0.51
TA Vanguard ETF Index - Aggressive Growth
		12/31/2012			18,951,905		1.28	to		1.25		24,151,894		1.09			0.85		to	1.55			15.58		to	14.78
		12/31/2011			14,669,327		1.11	to		1.09		16,189,766		0.78			0.85		to	1.55			(4.73	)	to	(5.38	)
		12/31/2010			6,205,926		1.16	to		1.15		7,202,035		0.06			0.85		to	1.55			13.44		to	12.66
		12/31/2009	(1)		—		1.02	to		1.02		—		—			0.85		to	1.55			2.50		to	2.42
TA Vanguard ETF Index - Conservative
		12/31/2012			63,583,536		1.17	to		1.13		74,106,639		1.07			0.85		to	2.00			5.71		to	4.52
		12/31/2011			47,466,573		1.11	to		1.08		52,440,643		0.75			0.85		to	2.00			2.31		to	1.16
		12/31/2010			17,971,835		1.08	to		1.07		19,439,626		0.03			0.85		to	2.00			8.50		to	7.28
		12/31/2009	(1)		721,858		1.00	to		1.00		720,898		—			0.85		to	2.00			(0.10	)	to	(0.23	)
TA AEGON Tactical Vanguard ETF - Growth
		12/31/2012			14,763,203		1.02	to		1.00		14,967,666		0.80			0.85		to	1.55			10.01		to	9.25
		12/31/2011	(1)		3,312,139		0.92	to		0.92		3,056,640		—			0.85		to	1.55			(7.62	)	to	(8.04	)
TA AEGON Tactical Vanguard ETF - Balanced
		12/31/2012			35,773,850		1.04	to		1.02		36,953,148		0.17			0.85		to	1.55			7.38		to	6.64
		12/31/2011	(1)		5,688,421		0.96	to		0.96		5,479,161		—			0.85		to	1.55			(3.54	)	to	(3.99	)
TA AEGON Tactical Vanguard ETF - Conservative
		12/31/2012			17,634,360		1.04	to		1.03		18,323,943		0.43			0.85		to	1.55			5.88		to	5.14
		12/31/2011	(1)		6,748,213		0.98	to		0.98		6,635,213		—			0.85		to	1.55			(1.55	)	to	(2.00	)
TA Legg Mason Dynamic Allocation - Balanced
		12/31/2012	(1)		4,355,028		1.01	to		1.01		4,408,603		—			0.85		to	1.55			—		to	—
TA Legg Mason Dynamic Allocation - Growth
		12/31/2012	(1)		1,399,102		1.01	to		1.00		1,408,905		—			0.85		to	1.55			—		to	—

15

Transamerica Life Insurance Company

Separate Account VA EE

Notes to Financial Statements

December 31, 2012

4. Financial Highlights (continued)

⁽¹⁾  See footnote 1

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

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

*** These amounts represent the total return for the periods indicated, including changes in the value of the Mutual Fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. Effective 2012, total returns reflect a full twelve month period and total returns for subaccounts opened during the year have not been disclosed as they may not be indicative of a full year return. Effective 2011, expense ratios not in effect for the full twelve months are not reflected in the total return as they may not be indicative of a full year return.

16

Transamerica Life Insurance Company

Separate Account VA EE

Notes to Financial Statements

December 31, 2012

5. Administrative and Mortality and Expense Risk Charges

TLIC deducts a daily administrative charge equal to an annual rate of .15% of the daily net assets value of each subaccount for administrative expenses. TLIC also deducts an annual charge during the accumulation phasae, not to exceed $35, proportionately from the subaccounts’ unit values. An annual charge ranging from .70% to 1.85% 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 subaccount. Charges reflected above are those currently assessed and may be subject to change. Contract owners should see their actual policy and any related attachments to determine their specific charges.

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.

17

Transamerica Life Insurance Company

Separate Account VA EE

Notes to Financial Statements

December 31, 2012

8. Fair Value Measurements and Fair Value Hierarchy

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

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

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

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

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

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

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

c) Inputs other than quoted market prices that are observable

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

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

All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon 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.

18

Transamerica Life Insurance Company

Separate Account VA EE

Notes to Financial Statements

December 31, 2012

9. Subsequent Events (continued)

Description of Separate Account Consolidation and Impact on Financial Statement Presentation

Effective after the close of business April 30, 2013, TLIC will consolidate Separate Account VA EE with Separate Account VA B, with Separate Account VA B being the surviving separate account after such consolidation. Financial statements of periods beginning on and after May 1, 2013, will reflect the consolidation transaction.

The consolidation will result in the financial statements of Separate Account VA EE being combined with the financial statements of Separate Account VA B. In effect, the consolidation will result in the transfer of the subaccounts in Separate Account VA EE to Separate Account VA B.

Each subaccount will continue to invest in the same Mutual Fund portfolio as that subaccount invested in prior to the consolidation. However subaccounts that invest in the same Mutal Fund portfolio will be combined on the financial statements of Separate Account VA B such that only one subaccount will be shown corresponding to each portfolio. TLIC however, will not exchange or convert the units of one subaccount to units of another. Instead TLIC will maintain all current subaccount units and accumulation unit values after the consolidations. Accordingly, each subaccount may reflect multiple accumulation unit values. No contract owner’s units or accumulation unit values will change in any regard as a result of the consolidations. Contract owners will have the same number of units with the same unit values immediately before as immediately after the consolidation.

19

FINANCIAL STATEMENTS

Transamerica Life Insurance Company

Separate Account VA B

Years Ended December 31, 2012 and 2011

Transamerica Life Insurance Company

Separate Account VA B

Financial Statements

Years Ended December 31, 2012 and 2011

Contents

Report of Independent Registered Public Accounting Firm	1
Financial Statements
Statements of Assets and Liabilities	2
Statements of Operations and Changes in Net Assets	209
Notes to Financial Statements	232

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 subaccounts as listed in the accompanying statements of assets and liabilities, as of December 31, 2012, 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 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. Our procedures included confirmation of securities owned as of December 31, 2012 by correspondence with the fund companies or their 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, 2012, 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

Des Moines, Iowa

April 8, 2013

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Asset Allocation - Growth Subaccount		TA Asset Allocation - Conservative Subaccount		TA Asset Allocation - Moderate Subaccount		TA Asset Allocation - Moderate Growth Subaccount
Assets
Investment in securities:
Number of shares - Initial		26,885,225.327		23,636,958.838		43,227,265.026		48,276,284.082
Cost	$	229,479,366	$	239,534,607	$	439,770,385	$	513,631,630
Number of shares - Service		9,589,168.664		49,422,277.751		123,183,808.603		115,276,756.782
Cost	$	76,578,096	$	485,744,440	$	1,285,006,328	$	1,222,842,088
Investments in mutual funds, Level 1 quoted prices at net asset value	$	328,423,683	$	776,061,011	$	1,805,322,816	$	1,775,437,056
Receivable for units sold		161		—		—		—
Total assets		328,423,844		776,061,011		1,805,322,816		1,775,437,056
Liabilities
Payable for units redeemed		—		247		222		782
Total net assets	$	328,423,844	$	776,060,764	$	1,805,322,594	$	1,775,436,274
Net Assets:
Deferred annuity contracts terminable by owners	$	328,423,844	$	776,060,764	$	1,805,322,594	$	1,775,436,274
Total net assets	$	328,423,844	$	776,060,764	$	1,805,322,594	$	1,775,436,274

See accompanying notes.

2

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Asset Allocation - Growth Subaccount		TA Asset Allocation - Conservative Subaccount		TA Asset Allocation - Moderate Subaccount		TA Asset Allocation - Moderate Growth Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		5,084,523		6,961,841		8,605,379		10,385,000
M&E - 1.25% - Landmark ML		1,594,198		241,790		1,771,393		1,940,436
M&E - 1.25% - Freedom		955,925		1,166,345		1,766,055		819,380
M&E - 1.30% - Landmark		24,490,417		21,859,360		40,790,825		44,774,327
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		666,948		713,701		3,882,961		1,536,243
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
M&E - 1.40% - Landmark		3,265,177		4,136,343		6,433,355		5,443,399
M&E - 1.40% - Landmark ML		4,904,843		1,673,381		3,835,523		4,313,622
M&E - 1.40% - Freedom		5,147,739		3,567,836		13,788,833		8,172,883
M&E - 1.50% - Landmark		20,614,104		34,097,121		27,648,040		33,375,587
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		5,424,916		5,637,549		7,655,261		11,542,375
M&E - 1.50% - Freedom		472,087		937,635		1,212,625		1,904,740
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		91,749,039		72,975,794		165,120,321		208,547,543
M&E - 1.55% - Landmark ML		9,304,281		11,917,072		21,457,845		20,299,044
M&E - 1.65% - Freedom		1,178,919		1,447,690		6,179,411		3,539,266
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	TA Asset Allocation - Growth Subaccount		TA Asset Allocation - Conservative Subaccount		TA Asset Allocation - Moderate Subaccount		TA Asset Allocation - Moderate Growth Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	TA Asset Allocation - Growth Subaccount		TA Asset Allocation - Conservative Subaccount		TA Asset Allocation - Moderate Subaccount		TA Asset Allocation - Moderate Growth Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.426436	$	1.553164	$	1.570026	$	1.522976
M&E - 1.25% - Landmark ML	$	1.426436	$	1.553164	$	1.570026	$	1.522976
M&E - 1.25% - Freedom	$	0.912494	$	1.138414	$	1.099631	$	1.010255
M&E - 1.30% - Landmark	$	1.418904	$	1.544993	$	1.561728	$	1.514897
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.418904	$	1.544993	$	1.561728	$	1.514897
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	1.404033	$	1.528836	$	1.545347	$	1.499056
M&E - 1.40% - Landmark ML	$	1.404033	$	1.528836	$	1.545347	$	1.499056
M&E - 1.40% - Freedom	$	1.327993	$	1.392729	$	1.424583	$	1.401388
M&E - 1.50% - Landmark	$	1.389338	$	1.512767	$	1.529176	$	1.483329
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.389338	$	1.512767	$	1.529176	$	1.483329
M&E - 1.50% - Freedom	$	1.389338	$	1.512767	$	1.529176	$	1.483329
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	1.382019	$	1.504875	$	1.521178	$	1.475604
M&E - 1.55% - Landmark ML	$	1.382019	$	1.504875	$	1.521178	$	1.475604
M&E - 1.65% - Freedom	$	1.367611	$	1.489153	$	1.505281	$	1.460110
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.346223	$	1.465859	$	1.481721	$	1.437351
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.346223	$	1.465859	$	1.481721	$	1.437351

See accompanying notes.

5

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Asset Allocation - Growth Subaccount		TA Asset Allocation - Conservative Subaccount		TA Asset Allocation - Moderate Subaccount		TA Asset Allocation - Moderate Growth Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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	$	1.311439	$	1.427973	$	1.443478	$	1.400187
M&E - 2.05% - Landmark ML	$	1.311439	$	1.427973	$	1.443478	$	1.400187
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, 2012

	TA Asset Allocation - Growth Subaccount		TA Asset Allocation - Conservative Subaccount		TA Asset Allocation - Moderate Subaccount		TA Asset Allocation - Moderate 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		21,086,265		192,730,062		468,442,126		408,616,020
M&E - 1.30% - Suntrust Landmark		1,375,777		2,234,266		7,368,625		8,287,797
M&E - 1.30% - Landmark Select		449,927		2,752,112		12,975,521		18,607,372
M&E - 1.30% - Huntington Landmark		606,164		5,848,664		30,119,642		15,437,858
M&E - 1.30% - Landmark ML		4,298,786		18,881,346		71,923,178		46,400,275
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		13,054,455		33,230,167		97,155,175		119,845,770
M&E - 1.50% - Suntrust Landmark		83,227		539,370		1,874,103		2,044,446
M&E - 1.50% - Landmark Select		150,568		254,972		1,625,423		2,459,219
M&E - 1.50% - Huntington Landmark		52,341		1,377,429		7,004,982		10,305,409
M&E - 1.50% - Landmark ML		838,995		3,951,358		11,633,948		16,498,862
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		1,120,540		2,921,253		5,700,142		4,678,653
M&E - 1.70% - Freedom		3,145,542		45,367,960		61,967,152		53,294,377
M&E - 1.70% - MEMBERS Freedom		—		—		—		—
M&E - 1.80% - Landmark		2,578,298		16,893,897		21,470,418		16,916,868
M&E - 1.80% - Suntrust Landmark		—		122,141		1,447		—
M&E - 1.80% - Landmark Select		—		48,205		141,367		—
M&E - 1.80% - Huntington Landmark		—		48,187		256,791		1,052,951
M&E - 1.80% - Landmark ML		—		1,462,925		3,989,524		2,157,605

See accompanying notes.

7

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Asset Allocation - Growth Subaccount		TA Asset Allocation - Conservative Subaccount		TA Asset Allocation - Moderate Subaccount		TA Asset Allocation - Moderate Growth Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		614,107		1,118,180		1,789,265		2,566,764
M&E - 1.90% - Freedom		592,542		6,327,828		12,386,652		21,418,628
M&E - 1.90% - MEMBERS Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		4,565,661		5,020,554		12,075,546
M&E - 1.95% - Landmark Select		—		—		—		32,695
M&E - 1.95% - Huntington Landmark		—		—		282,263		64,698
M&E - 1.95% - Landmark ML		—		203,576		567,740		6,920,183
M&E - 2.00% - Landmark		240,112		2,657,883		4,758,048		5,652,131
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		2,983		231,232
M&E - 2.00% - Landmark ML		—		218,246		1,554,329		797,854
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		1,923,863		1,011,422		2,180,864		4,362,283
M&E - 2.20% - Freedom		3,306,080		208,825		2,780,944		5,119,577
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		—		—		1,644,339		1,583,843
M&E - 2.45% - Landmark		—		46,164		9,028		413,860
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, 2012

	TA Asset Allocation - Growth Subaccount		TA Asset Allocation - Conservative Subaccount		TA Asset Allocation - Moderate Subaccount		TA Asset Allocation - Moderate 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	$	1.666162	$	1.608077	$	1.682810	$	1.694938
M&E - 1.30% - Suntrust Landmark	$	1.666162	$	1.608077	$	1.682810	$	1.694938
M&E - 1.30% - Landmark Select	$	1.666162	$	1.608077	$	1.682810	$	1.694938
M&E - 1.30% - Huntington Landmark	$	0.914167	$	1.124738	$	1.084434	$	1.003972
M&E - 1.30% - Landmark ML	$	1.666162	$	1.608077	$	1.682810	$	1.694938
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.634649	$	1.577709	$	1.650977	$	1.662940
M&E - 1.50% - Suntrust Landmark	$	1.634649	$	1.577709	$	1.650977	$	1.662940
M&E - 1.50% - Landmark Select	$	1.634649	$	1.577709	$	1.650977	$	1.662940
M&E - 1.50% - Huntington Landmark	$	0.904655	$	1.113028	$	1.073105	$	0.993516
M&E - 1.50% - Landmark ML	$	1.634649	$	1.577709	$	1.650977	$	1.662940
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	1.611441	$	1.555314	$	1.627573	$	1.639313
M&E - 1.70% - Freedom	$	0.964449	$	1.159346	$	1.134894	$	1.054546
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.588650	$	1.533280	$	1.604492	$	1.616089
M&E - 1.80% - Suntrust Landmark	$	1.588650	$	1.533280	$	1.604492	$	1.616089
M&E - 1.80% - Landmark Select	$	1.588650	$	1.533280	$	1.604492	$	1.616089
M&E - 1.80% - Huntington Landmark	$	0.890573	$	1.095719	$	1.056449	$	0.978062
M&E - 1.80% - Landmark ML	$	1.588650	$	1.533280	$	1.604492	$	1.616089

See accompanying notes.

9

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Asset Allocation - Growth Subaccount		TA Asset Allocation - Conservative Subaccount		TA Asset Allocation - Moderate Subaccount		TA Asset Allocation - Moderate Growth Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.581078	$	1.526033	$	1.596894	$	1.608418
M&E - 1.90% - Freedom	$	0.951866	$	1.144254	$	1.120068	$	1.040835
M&E - 1.90% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	1.350946	$	1.392087	$	1.379332
M&E - 1.95% - Landmark Select	$	—	$	1.094890	$	1.076523	$	1.027546
M&E - 1.95% - Huntington Landmark	$	—	$	1.094890	$	1.076523	$	1.027546
M&E - 1.95% - Landmark ML	$	—	$	1.094890	$	1.076523	$	1.027546
M&E - 2.00% - Landmark	$	1.558709	$	1.504440	$	1.574321	$	1.585737
M&E - 2.00% - Suntrust Landmark	$	1.558709	$	1.504440	$	1.574321	$	1.585737
M&E - 2.00% - Landmark Select	$	1.558709	$	1.504440	$	1.574321	$	1.585737
M&E - 2.00% - Huntington Landmark	$	0.881311	$	1.084334	$	1.045472	$	0.967917
M&E - 2.00% - Landmark ML	$	1.558709	$	1.504440	$	1.574321	$	1.585737
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	1.536724	$	1.483185	$	1.552088	$	1.563319
M&E - 2.20% - Freedom	$	0.933366	$	1.122023	$	1.098309	$	1.020578
M&E - 2.30% - Landmark	$	1.515039	$	1.462256	$	1.530219	$	1.541252
M&E - 2.30% - Suntrust Landmark	$	1.515039	$	1.462256	$	1.530219	$	1.541252
M&E - 2.30% - Landmark Select	$	1.515039	$	1.462256	$	1.530219	$	1.541252
M&E - 2.30% - Huntington Landmark	$	0.867689	$	1.067543	$	1.029315	$	0.952913
M&E - 2.30% - Landmark ML	$	1.515039	$	1.462256	$	1.530219	$	1.541252
M&E - 2.35% - Freedom	$	—	$	1.073904	$	1.055865	$	1.007823
M&E - 2.45% - Landmark	$	—	$	1.068724	$	1.050752	$	1.002978
M&E - 2.45% - Landmark Select	$	—	$	1.068724	$	1.050752	$	1.002978
M&E - 2.45% - Huntington Landmark	$	—	$	1.068724	$	1.050752	$	1.002978
M&E - 2.45% - Landmark ML	$	—	$	1.068724	$	1.050752	$	1.002978

See accompanying notes.

10

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA WMC  Diversified Growth Subaccount		TA MFS  International Equity Subaccount		TA Clarion Global Real Estate Securities Subaccount		TA Systematic Small/Mid  Cap Value Subaccount
Assets
Investment in securities:
Number of shares - Initial		9,031,761.882		8,158,561.783		3,904,615.770		7,283,730.534
Cost	$	208,450,413	$	56,030,192	$	42,489,025	$	128,515,767
Number of shares - Service		994,601.758		2,006,024.555		2,262,066.874		1,459,726.121
Cost	$	21,746,429	$	13,604,332	$	25,868,153	$	28,627,046
Investments in mutual funds, Level 1 quoted prices at net asset value	$	243,241,992	$	75,728,858	$	74,570,029	$	152,383,256
Receivable for units sold		128		30		—		—
Total assets		243,242,120		75,728,888		74,570,029		152,383,256
Liabilities
Payable for units redeemed		—		—		43		88
Total net assets	$	243,242,120	$	75,728,888	$	74,569,986	$	152,383,168
Net Assets:
Deferred annuity contracts terminable by owners	$	243,242,120	$	75,728,888	$	74,569,986	$	152,383,168
Total net assets	$	243,242,120	$	75,728,888	$	74,569,986	$	152,383,168

See accompanying notes.

11

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA WMC  Diversified Growth Subaccount		TA MFS  International Equity Subaccount		TA Clarion Global Real Estate Securities Subaccount		TA Systematic Small/Mid Cap Value Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		8,210,029		2,123,558		845,902		4,533,246
M&E - 1.25% - Landmark ML		1,661,598		282,686		53,782		1,120,653
M&E - 1.25% - Freedom		2,364,195		176,464		193,415		920,470
M&E - 1.30% - Landmark		13,889,144		6,022,690		3,084,617		498,602
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		511,223		163,263		90,879		52,093
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
M&E - 1.40% - Landmark		51,957,567		1,727,101		924,423		5,157,941
M&E - 1.40% - Landmark ML		15,827,411		730,877		190,928		1,204,093
M&E - 1.40% - Freedom		12,628,178		2,311,621		1,386,224		5,847,359
M&E - 1.50% - Landmark		24,230,058		7,572,170		2,788,271		13,548,930
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		5,270,878		1,555,405		223,110		3,886,617
M&E - 1.50% - Freedom		532,323		188,327		74,736		—
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		67,108,047		21,120,188		9,535,963		710,005
M&E - 1.55% - Landmark ML		12,412,982		2,317,566		1,081,237		541,989
M&E - 1.65% - Freedom		1,576,693		433,577		212,233		5,278
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	TA WMC  Diversified Growth Subaccount		TA MFS  International Equity Subaccount		TA Clarion Global Real Estate Securities Subaccount		TA Systematic Small/Mid Cap Value Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	TA WMC  Diversified Growth Subaccount		TA MFS  International Equity Subaccount		TA Clarion Global Real Estate Securities Subaccount		TA Systematic Small/Mid Cap Value Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.186249	$	1.284313	$	2.344689	$	2.401091
M&E - 1.25% - Landmark ML	$	1.186249	$	1.284313	$	2.344689	$	2.401091
M&E - 1.25% - Freedom	$	0.940904	$	0.987451	$	0.870207	$	1.310052
M&E - 1.30% - Landmark	$	1.484781	$	1.575082	$	2.332372	$	2.550630
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.484781	$	1.575082	$	2.332372	$	2.550630
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	0.902570	$	1.262298	$	2.307934	$	7.647247
M&E - 1.40% - Landmark ML	$	0.902570	$	1.262298	$	2.307934	$	7.647247
M&E - 1.40% - Freedom	$	1.313354	$	1.556407	$	1.904105	$	2.110299
M&E - 1.50% - Landmark	$	1.152560	$	1.247826	$	2.283753	$	2.332960
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.152560	$	1.247826	$	2.283753	$	2.332960
M&E - 1.50% - Freedom	$	0.891358	$	1.247826	$	2.283753	$	7.008813
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	0.885855	$	1.240712	$	2.271788	$	7.472625
M&E - 1.55% - Landmark ML	$	0.885855	$	1.240712	$	2.271788	$	7.473906
M&E - 1.65% - Freedom	$	0.874866	$	1.226517	$	2.248019	$	6.850709
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.408682	$	1.494444	$	2.212882	$	2.419989
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.408682	$	1.494444	$	2.212882	$	2.419989

See accompanying notes.

14

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA WMC  Diversified Growth Subaccount		TA MFS  International Equity Subaccount		TA Clarion Global Real Estate Securities Subaccount		TA Systematic Small/Mid Cap Value Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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	$	0.935799	$	—	$	—	$	—
M&E - 2.05% - Landmark	$	1.372240	$	1.455806	$	2.155723	$	2.357463
M&E - 2.05% - Landmark ML	$	1.372240	$	1.455806	$	2.155723	$	2.357463
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	0.918933	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	0.918933	$	—	$	—	$	—
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, 2012

	TA WMC  Diversified Growth Subaccount		TA MFS  International Equity Subaccount		TA Clarion Global Real Estate Securities Subaccount		TA Systematic Small/Mid Cap Value 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		7,224,741		3,433,850		6,821,210		12,494,272
M&E - 1.30% - Suntrust Landmark		96,035		9,425		5,377		—
M&E - 1.30% - Landmark Select		137,559		28,701		13,358		—
M&E - 1.30% - Huntington Landmark		198,246		33,684		225,947		192,896
M&E - 1.30% - Landmark ML		463,455		297,179		309,762		98,962
M&E - 1.30% - MEMBERS Landmark		—		946,233		461,811		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		2,917,722		1,378,977		2,718,879		4,506,246
M&E - 1.50% - Suntrust Landmark		80,346		5,472		8,727		—
M&E - 1.50% - Landmark Select		23,537		—		—		—
M&E - 1.50% - Huntington Landmark		68,239		60,007		216,120		95,846
M&E - 1.50% - Landmark ML		419,797		76,137		56,801		198,189
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		—		173,925		93,740		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		228,429		44,404		33,795		5,704
M&E - 1.70% - Freedom		1,072,133		915,158		1,274,634		1,055,697
M&E - 1.70% - MEMBERS Freedom		—		75,640		186,460		—
M&E - 1.80% - Landmark		932,548		134,905		419,989		262,943
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		2,305		1,981		—		—
M&E - 1.80% - Huntington Landmark		11,580		—		64,685		—
M&E - 1.80% - Landmark ML		11,909		—		12,930		2,390

See accompanying notes.

16

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA WMC  Diversified Growth Subaccount		TA MFS  International Equity Subaccount		TA Clarion Global Real Estate Securities Subaccount		TA Systematic Small/Mid Cap Value Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		413,345		146,301		49,937		2,026
M&E - 1.90% - Freedom		321,193		216,773		87,411		119,960
M&E - 1.90% - MEMBERS Freedom		—		24,854		27,711		—
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		31,161		10,302		38,233		61,211
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		2,942		—		2,092		—
M&E - 2.00% - Landmark ML		—		—		12,491		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		742,543		73,599		165,596		41,954
M&E - 2.20% - Freedom		536,940		95,182		32,577		9,579
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, 2012

	TA WMC  Diversified Growth Subaccount		TA MFS  International Equity Subaccount		TA Clarion Global Real Estate Securities Subaccount		TA Systematic Small/Mid Cap Value 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	$	1.612851	$	1.978606	$	2.319167	$	1.318339
M&E - 1.30% - Suntrust Landmark	$	1.612851	$	1.978606	$	2.319167	$	—
M&E - 1.30% - Landmark Select	$	1.612851	$	1.978606	$	2.319167	$	1.318339
M&E - 1.30% - Huntington Landmark	$	0.909413	$	1.002713	$	0.967944	$	1.318339
M&E - 1.30% - Landmark ML	$	1.612851	$	1.978606	$	2.319167	$	1.318339
M&E - 1.30% - MEMBERS Landmark	$	—	$	1.978606	$	2.319167	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.582325	$	1.941176	$	2.275322	$	1.305548
M&E - 1.50% - Suntrust Landmark	$	1.582325	$	1.941176	$	2.275322	$	—
M&E - 1.50% - Landmark Select	$	1.582325	$	1.941176	$	2.275322	$	1.305548
M&E - 1.50% - Huntington Landmark	$	0.899949	$	0.992254	$	0.957852	$	1.305548
M&E - 1.50% - Landmark ML	$	1.582325	$	1.941176	$	2.275322	$	1.305548
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	—	$	1.941176	$	2.275322	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	1.559892	$	1.913640	$	2.243045	$	1.296030
M&E - 1.70% - Freedom	$	0.936427	$	1.072425	$	1.077042	$	1.292896
M&E - 1.70% - MEMBERS Freedom	$	—	$	1.072425	$	1.077042	$	—
M&E - 1.80% - Landmark	$	1.537808	$	1.886504	$	2.211273	$	1.286608
M&E - 1.80% - Suntrust Landmark	$	1.537808	$	1.886504	$	2.211273	$	—
M&E - 1.80% - Landmark Select	$	1.537808	$	1.886504	$	2.211273	$	1.286608
M&E - 1.80% - Huntington Landmark	$	0.885940	$	0.976798	$	0.942948	$	1.286608
M&E - 1.80% - Landmark ML	$	1.537808	$	1.886504	$	2.211273	$	1.286608

See accompanying notes.

18

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA WMC  Diversified Growth Subaccount		TA MFS  International Equity Subaccount		TA Clarion Global Real Estate Securities Subaccount		TA Systematic Small/Mid Cap Value Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.530471	$	1.877541	$	2.200836	$	1.283510
M&E - 1.90% - Freedom	$	0.924203	$	1.058428	$	1.062988	$	1.280359
M&E - 1.90% - MEMBERS Freedom	$	—	$	1.058428	$	1.062988	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	1.277274
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.508818	$	1.851021	$	2.169653	$	1.274168
M&E - 2.00% - Suntrust Landmark	$	1.508818	$	1.851021	$	2.169653	$	—
M&E - 2.00% - Landmark Select	$	1.508818	$	1.851021	$	2.169653	$	1.274168
M&E - 2.00% - Huntington Landmark	$	0.876741	$	0.966683	$	0.933163	$	1.274168
M&E - 2.00% - Landmark ML	$	1.508818	$	1.851021	$	2.169653	$	1.274168
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	1.487541	$	1.824864	$	2.139045	$	1.264937
M&E - 2.20% - Freedom	$	0.906245	$	1.037862	$	1.042314	$	1.261879
M&E - 2.30% - Landmark	$	1.466552	$	1.799183	$	2.108886	$	1.255790
M&E - 2.30% - Suntrust Landmark	$	1.466552	$	1.799183	$	2.108886	$	—
M&E - 2.30% - Landmark Select	$	1.466552	$	1.799183	$	2.108886	$	1.255790
M&E - 2.30% - Huntington Landmark	$	0.863185	$	0.951709	$	0.918700	$	1.255790
M&E - 2.30% - Landmark ML	$	1.466552	$	1.799183	$	2.108886	$	1.255790
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, 2012

	TA Multi-Managed Balanced Subaccount		TA Jennison Growth Subaccount		TA JPMorgan Enhanced Index Subaccount		TA AEGON High Yield Bond Subaccount
Assets
Investment in securities:
Number of shares - Initial		2,769,186.512		18,359,140.009		4,806,887.260		11,287,119.431
Cost	$	34,028,333	$	135,960,919	$	52,635,879	$	87,008,670
Number of shares - Service		6,537,998.303		2,210,712.643		329,929.115		6,896,212.027
Cost	$	77,051,057	$	17,359,528	$	4,168,865	$	54,673,537
Investments in mutual funds, Level 1 quoted prices at net asset value	$	111,515,473	$	173,255,843	$	69,096,779	$	149,611,106
Receivable for units sold		—		—		—		—
Total assets		111,515,473		173,255,843		69,096,779		149,611,106
Liabilities
Payable for units redeemed		47		39		32		52
Total net assets	$	111,515,426	$	173,255,804	$	69,096,747	$	149,611,054
Net Assets:
Deferred annuity contracts terminable by owners	$	111,515,426	$	173,255,804	$	69,096,747	$	149,611,054
Total net assets	$	111,515,426	$	173,255,804	$	69,096,747	$	149,611,054

See accompanying notes.

20

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Multi-Managed Balanced Subaccount		TA Jennison Growth Subaccount		TA JPMorgan Enhanced Index Subaccount		TA AEGON High Yield Bond Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		715,686		4,719,091		3,605,582		2,512,915
M&E - 1.25% - Landmark ML		45,179		1,983,969		621,131		271,753
M&E - 1.25% - Freedom		88,733		827,228		567,402		381,360
M&E - 1.30% - Landmark		3,840,637		9,936,627		2,922,701		5,306,608
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		40,016		652,897		185,921		224,524
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
M&E - 1.40% - Landmark		1,080,796		26,525,019		5,366,682		2,834,052
M&E - 1.40% - Landmark ML		175,228		9,302,789		3,394,482		755,885
M&E - 1.40% - Freedom		669,621		6,860,588		4,540,912		1,511,295
M&E - 1.50% - Landmark		2,827,219		20,278,956		7,775,561		8,887,173
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		83,107		5,647,477		1,266,381		880,631
M&E - 1.50% - Freedom		535,473		132,447		45,859		335,854
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		8,665,216		42,949,002		11,433,370		23,194,900
M&E - 1.55% - Landmark ML		668,415		9,049,180		1,806,413		1,660,999
M&E - 1.65% - Freedom		200,584		985,228		57,864		220,385
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	TA Multi-Managed Balanced Subaccount		TA Jennison Growth Subaccount		TA JPMorgan Enhanced Index Subaccount		TA AEGON High Yield Bond Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	TA Multi-Managed Balanced Subaccount		TA Jennison Growth Subaccount		TA JPMorgan Enhanced Index Subaccount		TA AEGON High Yield Bond Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.747752	$	1.099890	$	1.157026	$	1.976566
M&E - 1.25% - Landmark ML	$	1.747752	$	1.099890	$	1.157026	$	1.976566
M&E - 1.25% - Freedom	$	1.251552	$	1.149698	$	1.003915	$	1.388301
M&E - 1.30% - Landmark	$	1.738528	$	1.380840	$	1.380371	$	1.969227
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.738528	$	1.380840	$	1.380371	$	1.969227
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	1.720340	$	1.076768	$	1.774989	$	1.903896
M&E - 1.40% - Landmark ML	$	1.720340	$	1.076768	$	1.774989	$	1.903896
M&E - 1.40% - Freedom	$	1.636750	$	1.435729	$	1.330616	$	1.703142
M&E - 1.50% - Landmark	$	1.702306	$	1.068677	$	1.124191	$	1.920489
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.702306	$	1.068677	$	1.124191	$	1.920489
M&E - 1.50% - Freedom	$	1.702306	$	1.058682	$	1.747161	$	1.876761
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	1.693398	$	1.052131	$	1.734465	$	1.863261
M&E - 1.55% - Landmark ML	$	1.693398	$	1.052271	$	1.734769	$	1.863261
M&E - 1.65% - Freedom	$	1.675669	$	1.034751	$	1.707718	$	1.836727
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.649495	$	1.310124	$	1.309645	$	1.868386
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.649495	$	1.310124	$	1.309645	$	1.868386

See accompanying notes.

23

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Multi-Managed Balanced Subaccount		TA Jennison Growth Subaccount		TA JPMorgan Enhanced Index Subaccount		TA AEGON High Yield Bond Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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	$	1.606907	$	1.276252	$	1.275757	$	1.820088
M&E - 2.05% - Landmark ML	$	1.606907	$	1.276252	$	1.275757	$	1.820088
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, 2012

	TA Multi-Managed Balanced Subaccount		TA Jennison Growth Subaccount		TA JPMorgan Enhanced Index Subaccount		TA AEGON High Yield Bond Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		11,104		—		—		—
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		23,787,418		5,323,504		1,260,282		12,258,366
M&E - 1.30% - Suntrust Landmark		20,069		206,874		4,841		103,161
M&E - 1.30% - Landmark Select		47,993		79,401		54,648		44,186
M&E - 1.30% - Huntington Landmark		900,723		256,881		10,974		348,666
M&E - 1.30% - Landmark ML		2,587,096		375,353		45,895		193,373
M&E - 1.30% - MEMBERS Landmark		—		—		—		2,153,605
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		11,270		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		8,569,829		2,718,536		929,971		11,621,584
M&E - 1.50% - Suntrust Landmark		15,368		12,124		3,888		16,380
M&E - 1.50% - Landmark Select		155,023		—		—		—
M&E - 1.50% - Huntington Landmark		347,199		97,423		—		149,070
M&E - 1.50% - Landmark ML		590,437		170,175		—		88,835
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		—		—		—		275,287
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		334,838		—		—		—
M&E - 1.65% - Freedom		60,337		80,899		21,396		98,423
M&E - 1.70% - Freedom		4,597,210		891,544		291,356		2,434,724
M&E - 1.70% - MEMBERS Freedom		—		—		—		261,946
M&E - 1.80% - Landmark		1,394,999		212,078		44,254		983,941
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		2,196		—		—
M&E - 1.80% - Huntington Landmark		37,717		—		—		28,911
M&E - 1.80% - Landmark ML		148,104		5,542		—		1,923

See accompanying notes.

25

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Multi-Managed Balanced Subaccount		TA Jennison Growth Subaccount		TA JPMorgan Enhanced Index Subaccount		TA AEGON High Yield Bond Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		56,745		49,073		4,178		479,791
M&E - 1.90% - Freedom		783,003		162,177		15,513		179,922
M&E - 1.90% - MEMBERS Freedom		—		—		—		29,431
M&E - 1.95% - Landmark		1,610,887		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		3,438		—		—		—
M&E - 1.95% - Landmark ML		66,384		—		—		—
M&E - 2.00% - Landmark		199,996		47,472		7,514		152,044
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		23,044		—		—		1,248
M&E - 2.00% - Landmark ML		41,390		—		—		11,638
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		58,660		594,339		172,877		551,200
M&E - 2.20% - Freedom		5,539		93,310		45,370		10,787
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		152,896		—		—		—
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, 2012

	TA  Multi-Managed Balanced Subaccount		TA Jennison Growth Subaccount		TA JPMorgan Enhanced  Index Subaccount		TA AEGON High Yield Bond Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	1.285530	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	1.769538	$	1.700742	$	1.607288	$	1.818674
M&E - 1.30% - Suntrust Landmark	$	1.769538	$	1.700742	$	1.607288	$	1.818674
M&E - 1.30% - Landmark Select	$	1.769538	$	1.700742	$	1.607288	$	1.818674
M&E - 1.30% - Huntington Landmark	$	1.224345	$	1.127018	$	1.019300	$	1.421043
M&E - 1.30% - Landmark ML	$	1.769538	$	1.700742	$	1.607288	$	1.818674
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	1.818674
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	1.280456	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.736065	$	1.668593	$	1.576937	$	1.784325
M&E - 1.50% - Suntrust Landmark	$	1.736065	$	1.668593	$	1.576937	$	1.784325
M&E - 1.50% - Landmark Select	$	1.736065	$	1.668593	$	1.576937	$	1.784325
M&E - 1.50% - Huntington Landmark	$	1.211587	$	1.115275	$	1.008650	$	1.406256
M&E - 1.50% - Landmark ML	$	1.736065	$	1.668593	$	1.576937	$	1.784325
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	1.784325
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	1.275378	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	1.711390	$	1.644910	$	1.554530	$	1.759012
M&E - 1.70% - Freedom	$	1.289312	$	1.147614	$	1.113290	$	1.463013
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	1.463013
M&E - 1.80% - Landmark	$	1.687164	$	1.621594	$	1.532527	$	1.734128
M&E - 1.80% - Suntrust Landmark	$	1.687164	$	1.621594	$	1.532527	$	1.734128
M&E - 1.80% - Landmark Select	$	1.687164	$	1.621594	$	1.532527	$	1.734128
M&E - 1.80% - Huntington Landmark	$	1.192729	$	1.097922	$	0.992929	$	1.384384
M&E - 1.80% - Landmark ML	$	1.687164	$	1.621594	$	1.532527	$	1.734128

See accompanying notes.

27

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Multi-Managed Balanced Subaccount		TA Jennison Growth Subaccount		TA JPMorgan Enhanced Index Subaccount		TA AEGON High Yield Bond Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.679167	$	1.613918	$	1.525271	$	1.725868
M&E - 1.90% - Freedom	$	1.272464	$	1.132690	$	1.098742	$	1.444044
M&E - 1.90% - MEMBERS Freedom	$	—	$	—	$	—	$	1.444044
M&E - 1.95% - Landmark	$	1.566437	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	1.234467	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	1.234467	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	1.234467	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.655462	$	1.591079	$	1.503707	$	1.701475
M&E - 2.00% - Suntrust Landmark	$	1.655462	$	1.591079	$	1.503707	$	1.701475
M&E - 2.00% - Landmark Select	$	1.655462	$	1.591079	$	1.503707	$	1.701475
M&E - 2.00% - Huntington Landmark	$	1.180366	$	1.086546	$	0.982678	$	1.370005
M&E - 2.00% - Landmark ML	$	1.655462	$	1.591079	$	1.503707	$	1.701475
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	1.258732	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	1.632069	$	1.568615	$	1.482493	$	1.677476
M&E - 2.20% - Freedom	$	1.247781	$	1.110626	$	1.077411	$	1.415957
M&E - 2.30% - Landmark	$	1.609055	$	1.546518	$	1.461560	$	1.653817
M&E - 2.30% - Suntrust Landmark	$	1.609055	$	1.546518	$	1.461560	$	1.653817
M&E - 2.30% - Landmark Select	$	1.609055	$	1.546518	$	1.461560	$	1.653817
M&E - 2.30% - Huntington Landmark	$	1.162072	$	1.069713	$	0.967437	$	1.348787
M&E - 2.30% - Landmark ML	$	1.609055	$	1.546518	$	1.461560	$	1.653817
M&E - 2.35% - Freedom	$	1.210752	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	1.204937	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	1.204937	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	1.204937	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	1.204937	$	—	$	—	$	—

See accompanying notes.

28

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA BlackRock Large Cap Value Subaccount		TA PIMCO Total Return Subaccount		TA Morgan Stanley Capital Growth Subaccount		TA AllianceBernstein Dynamic Allocation Subaccount
Assets
Investment in securities:
Number of shares - Initial		21,756,628.167		24,379,824.016		7,202,673.602		2,440,736.198
Cost	$	286,866,077	$	280,320,296	$	82,389,169	$	19,151,364
Number of shares - Service		3,327,906.951		34,028,334.135		810,733.143		17,456,517.552
Cost	$	46,129,726	$	400,446,738	$	9,214,974	$	143,594,385
Investments in mutual funds, Level 1 quoted prices at net asset value	$	378,374,627	$	703,188,567	$	82,633,499	$	170,641,501
Receivable for units sold		57		—		—		—
Total assets		378,374,684		703,188,567		82,633,499		170,641,501
Liabilities
Payable for units redeemed		—		352		78		187
Total net assets	$	378,374,684	$	703,188,215	$	82,633,421	$	170,641,314
Net Assets:
Deferred annuity contracts terminable by owners	$	378,374,684	$	703,188,215	$	82,633,421	$	170,641,314
Total net assets	$	378,374,684	$	703,188,215	$	82,633,421	$	170,641,314

See accompanying notes.

29

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA BlackRock Large Cap Value Subaccount		TA PIMCO Total Return Subaccount		TA Morgan Stanley Capital Growth Subaccount		TA AllianceBernstein Dynamic Allocation Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		9,916,418		5,895,168		2,856,287		555,722
M&E - 1.25% - Landmark ML		1,923,481		871,202		320,703		67,545
M&E - 1.25% - Freedom		2,837,981		1,402,993		376,559		72,905
M&E - 1.30% - Landmark		21,711,500		22,100,523		4,486,378		2,235,770
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		933,643		1,438,183		383,424		161,604
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
M&E - 1.40% - Landmark		33,422,698		7,163,956		2,184,405		878,455
M&E - 1.40% - Landmark ML		6,350,302		3,129,683		278,112		319,098
M&E - 1.40% - Freedom		18,866,648		5,567,310		3,158,623		439,712
M&E - 1.50% - Landmark		34,714,557		24,033,387		14,008,412		1,781,767
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		7,699,227		6,718,468		3,104,534		397,529
M&E - 1.50% - Freedom		412,981		1,049,363		19,349		72,682
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		68,576,592		92,053,021		21,517,588		6,206,331
M&E - 1.55% - Landmark ML		7,966,609		12,422,408		3,087,621		808,433
M&E - 1.65% - Freedom		1,694,890		1,211,177		172,770		167,497
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	TA BlackRock Large Cap Value Subaccount		TA PIMCO Total Return Subaccount		TA Morgan Stanley Capital Growth Subaccount		TA AllianceBernstein Dynamic Allocation Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	TA BlackRock Large Cap Value Subaccount		TA PIMCO Total Return Subaccount		TA Morgan Stanley Capital Growth Subaccount		TA AllianceBernstein Dynamic Allocation Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.471331	$	1.636957	$	1.289733	$	1.528428
M&E - 1.25% - Landmark ML	$	1.471331	$	1.636957	$	1.289733	$	1.528428
M&E - 1.25% - Freedom	$	0.875601	$	1.376763	$	1.012826	$	1.055945
M&E - 1.30% - Landmark	$	1.480831	$	1.628308	$	1.402391	$	1.520365
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.480831	$	1.628308	$	1.402391	$	1.520365
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	1.604940	$	1.611259	$	1.394255	$	1.504417
M&E - 1.40% - Landmark ML	$	1.604940	$	1.611259	$	1.394255	$	1.504417
M&E - 1.40% - Freedom	$	1.395456	$	1.487285	$	1.335130	$	1.312676
M&E - 1.50% - Landmark	$	1.429616	$	1.594413	$	1.253160	$	1.488696
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.429616	$	1.594413	$	1.253160	$	1.488696
M&E - 1.50% - Freedom	$	1.585002	$	1.594413	$	1.376888	$	1.488696
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	1.575106	$	1.586028	$	1.368303	$	1.480866
M&E - 1.55% - Landmark ML	$	1.575106	$	1.586028	$	1.368303	$	1.480866
M&E - 1.65% - Freedom	$	1.555579	$	1.569458	$	1.351378	$	1.465381
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.404961	$	1.544955	$	1.330605	$	1.442494
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.404961	$	1.544955	$	1.330605	$	1.442494

See accompanying notes.

32

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA BlackRock Large Cap Value Subaccount		TA PIMCO Total Return Subaccount		TA Morgan Stanley Capital Growth Subaccount		TA AllianceBernstein Dynamic Allocation Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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	$	1.368617	$	1.504982	$	1.296183	$	1.405201
M&E - 2.05% - Landmark ML	$	1.368617	$	1.504982	$	1.296183	$	1.405201
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, 2012

	TA BlackRock Large Cap Value Subaccount		TA PIMCO Total Return Subaccount		TA Morgan Stanley Capital Growth Subaccount		TA AllianceBernstein Dynamic 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		11,909,494		149,650,781		2,935,954		61,957,345
M&E - 1.30% - Suntrust Landmark		140,900		365,310		1,486		—
M&E - 1.30% - Landmark Select		124,564		1,011,594		5,379		21,267
M&E - 1.30% - Huntington Landmark		2,336,118		8,269,925		5,552		3,844,924
M&E - 1.30% - Landmark ML		721,840		15,119,217		119,783		6,134,765
M&E - 1.30% - MEMBERS Landmark		2,650,608		23,509,102		—		4,100,200
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		5,928,246		35,154,449		919,796		12,774,097
M&E - 1.50% - Suntrust Landmark		24,849		56,827		—		21,113
M&E - 1.50% - Landmark Select		5,253		206,598		1,689		—
M&E - 1.50% - Huntington Landmark		585,890		1,675,756		16,210		614,642
M&E - 1.50% - Landmark ML		347,499		2,675,021		—		1,267,651
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		481,581		2,228,855		—		307,005
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		161,313		549,940		16,048		391,570
M&E - 1.70% - Freedom		2,892,793		14,779,629		496,800		3,780,400
M&E - 1.70% - MEMBERS Freedom		265,205		1,832,008		—		164,288
M&E - 1.80% - Landmark		1,381,601		12,098,292		372,525		2,264,295
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		199,660		352,264		—		333,940
M&E - 1.80% - Landmark ML		7,516		987,772		—		949,552

See accompanying notes.

34

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA BlackRock Large Cap Value Subaccount		TA PIMCO Total Return Subaccount		TA Morgan Stanley Capital Growth Subaccount		TA AllianceBernstein Dynamic Allocation Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		380,594		812,896		24,590		30,848
M&E - 1.90% - Freedom		421,043		1,501,570		51,629		1,271,111
M&E - 1.90% - MEMBERS Freedom		78,005		216,790		—		17,045
M&E - 1.95% - Landmark		—		3,693,535		—		377,051
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		249,799		—		—
M&E - 2.00% - Landmark		159,845		1,143,952		14,694		643,148
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		9,861		—		88,121
M&E - 2.00% - Landmark ML		—		790,965		—		291,362
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		629,754		1,324,637		124,573		52,526
M&E - 2.20% - Freedom		477,240		233,102		13,883		12,961
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		—		80,218		—		293,864
M&E - 2.45% - Landmark		—		317,213		—		—
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, 2012

	TA BlackRock Large Cap Value Subaccount		TA PIMCO Total Return Subaccount		TA Morgan Stanley Capital Growth Subaccount		TA AllianceBernstein Dynamic 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	$	1.759082	$	1.476859	$	1.707422	$	1.528267
M&E - 1.30% - Suntrust Landmark	$	1.759082	$	1.476859	$	1.707422	$	1.528267
M&E - 1.30% - Landmark Select	$	1.759082	$	1.476859	$	1.707422	$	1.528267
M&E - 1.30% - Huntington Landmark	$	0.900849	$	1.325998	$	1.044139	$	0.988576
M&E - 1.30% - Landmark ML	$	1.759082	$	1.476859	$	1.707422	$	1.528267
M&E - 1.30% - MEMBERS Landmark	$	1.759082	$	1.476859	$	—	$	1.528267
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	1.484787	$	1.292560	$	—	$	—
M&E - 1.50% - Landmark	$	1.725844	$	1.448972	$	1.675125	$	1.499370
M&E - 1.50% - Suntrust Landmark	$	1.725844	$	1.448972	$	1.675125	$	1.499370
M&E - 1.50% - Landmark Select	$	1.725844	$	1.448972	$	1.675125	$	1.499370
M&E - 1.50% - Huntington Landmark	$	0.891446	$	1.312176	$	1.033238	$	0.978267
M&E - 1.50% - Landmark ML	$	1.725844	$	1.448972	$	1.675125	$	1.499370
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	1.725844	$	1.448972	$	—	$	1.499370
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	1.701350	$	1.428399	$	1.651359	$	1.478095
M&E - 1.70% - Freedom	$	0.947133	$	1.390809	$	1.094346	$	1.027884
M&E - 1.70% - MEMBERS Freedom	$	0.947133	$	1.390809	$	—	$	1.027884
M&E - 1.80% - Landmark	$	1.677234	$	1.408160	$	1.627962	$	1.457166
M&E - 1.80% - Suntrust Landmark	$	1.677234	$	1.408160	$	1.627962	$	1.457166
M&E - 1.80% - Landmark Select	$	1.677234	$	1.408160	$	1.627962	$	1.457166
M&E - 1.80% - Huntington Landmark	$	0.877560	$	1.291760	$	1.017134	$	0.963050
M&E - 1.80% - Landmark ML	$	1.677234	$	1.408160	$	1.627962	$	1.457166

See accompanying notes.

36

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA BlackRock Large Cap Value Subaccount		TA PIMCO Total Return Subaccount		TA Morgan Stanley Capital Growth Subaccount		TA AllianceBernstein Dynamic Allocation Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.669302	$	1.401481	$	1.620255	$	1.450240
M&E - 1.90% - Freedom	$	0.934778	$	1.372676	$	1.080116	$	1.014505
M&E - 1.90% - MEMBERS Freedom	$	0.934778	$	1.372676	$	—	$	1.014505
M&E - 1.95% - Landmark	$	—	$	1.396607	$	—	$	1.273324
M&E - 1.95% - Landmark Select	$	—	$	1.195869	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	1.195869	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	1.195869	$	—	$	—
M&E - 2.00% - Landmark	$	1.645690	$	1.381645	$	1.597346	$	1.429746
M&E - 2.00% - Suntrust Landmark	$	1.645690	$	1.381645	$	1.597346	$	1.429746
M&E - 2.00% - Landmark Select	$	1.645690	$	1.381645	$	1.597346	$	1.429746
M&E - 2.00% - Huntington Landmark	$	0.868461	$	1.278371	$	1.006602	$	0.953055
M&E - 2.00% - Landmark ML	$	1.645690	$	1.381645	$	1.597346	$	1.429746
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	1.622491	$	1.362118	$	1.574781	$	1.409586
M&E - 2.20% - Freedom	$	0.916608	$	1.346022	$	1.059090	$	0.994788
M&E - 2.30% - Landmark	$	1.599576	$	1.342931	$	1.552587	$	1.389691
M&E - 2.30% - Suntrust Landmark	$	1.599576	$	1.342931	$	1.552587	$	1.389691
M&E - 2.30% - Landmark Select	$	1.599576	$	1.342931	$	1.552587	$	1.389691
M&E - 2.30% - Huntington Landmark	$	0.855008	$	1.258582	$	0.991017	$	0.938308
M&E - 2.30% - Landmark ML	$	1.599576	$	1.342931	$	1.552587	$	1.389691
M&E - 2.35% - Freedom	$	—	$	1.172955	$	—	$	1.073911
M&E - 2.45% - Landmark	$	—	$	1.167289	$	—	$	—
M&E - 2.45% - Landmark Select	$	—	$	1.167289	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	1.167289	$	—	$	—
M&E - 2.45% - Landmark ML	$	—	$	1.167289	$	—	$	—

See accompanying notes.

37

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON U.S. Government Securities Subaccount		TA T. Rowe Price Small Cap Subaccount		TA Morgan Stanley Active International Allocation Subaccount		TA Multi Managed Large Cap Core Subaccount
Assets
Investment in securities:
Number of shares - Initial		7,301,271.174		7,447,287.569		6,553,658.080		8,287,843.239
Cost	$	94,591,990	$	64,580,806	$	80,326,797	$	91,093,012
Number of shares - Service		12,700,516.645		3,037,025.292		1,011,808.255		717,938.718
Cost	$	170,909,749	$	29,427,762	$	10,513,781	$	10,996,270
Investments in mutual funds, Level 1 quoted prices at net asset value	$	267,671,777	$	107,242,899	$	83,537,695	$	157,622,092
Receivable for units sold		161		56		—		—
Total assets		267,671,938		107,242,955		83,537,695		157,622,092
Liabilities
Payable for units redeemed		—		—		23		14
Total net assets	$	267,671,938	$	107,242,955	$	83,537,672	$	157,622,078
Net Assets:
Deferred annuity contracts terminable by owners	$	267,671,938	$	107,242,955	$	83,537,672	$	157,622,078
Total net assets	$	267,671,938	$	107,242,955	$	83,537,672	$	157,622,078

See accompanying notes.

38

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON U.S. Government Securities Subaccount		TA T. Rowe Price Small Cap Subaccount		TA Morgan Stanley Active International Allocation Subaccount		TA Multi Managed Large Cap Core Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		3,939,529		2,075,115		2,034,778		4,698,470
M&E - 1.25% - Landmark ML		1,099,507		171,450		565,312		820,231
M&E - 1.25% - Freedom		467,564		250,408		813,009		1,565,443
M&E - 1.30% - Landmark		6,101,185		6,375,636		5,001,624		5,192,963
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		359,065		239,677		237,823		390,093
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
M&E - 1.40% - Landmark		5,011,222		2,094,580		8,551,872		8,635,777
M&E - 1.40% - Landmark ML		2,120,594		974,775		2,225,278		1,731,364
M&E - 1.40% - Freedom		3,601,498		2,057,159		4,486,466		9,651,373
M&E - 1.50% - Landmark		9,323,332		7,213,577		6,975,373		14,064,297
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		3,346,875		1,659,894		1,545,295		3,388,038
M&E - 1.50% - Freedom		208,487		449,770		46,379		74,039
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		17,642,246		26,751,184		11,812,554		10,202,220
M&E - 1.55% - Landmark ML		2,728,822		3,416,359		1,679,447		1,403,246
M&E - 1.65% - Freedom		287,413		445,341		66,185		100,514
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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.

39

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON U.S. Government Securities Subaccount		TA T. Rowe Price Small Cap Subaccount		TA Morgan Stanley Active International Allocation Subaccount		TA Multi Managed Large Cap Core Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	TA AEGON U.S. Government Securities Subaccount		TA T. Rowe Price Small Cap Subaccount		TA Morgan Stanley Active International Allocation Subaccount		TA Multi Managed Large Cap Core Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.484019	$	1.648412	$	1.258268	$	1.455655
M&E - 1.25% - Landmark ML	$	1.484019	$	1.648412	$	1.258268	$	1.455655
M&E - 1.25% - Freedom	$	1.285914	$	1.348983	$	0.831892	$	1.098759
M&E - 1.30% - Landmark	$	1.449604	$	1.779173	$	1.515432	$	1.588828
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.449604	$	1.779173	$	1.515432	$	1.588828
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	2.030943	$	1.291996	$	1.827259	$	3.989387
M&E - 1.40% - Landmark ML	$	2.030943	$	1.291996	$	1.827259	$	3.989387
M&E - 1.40% - Freedom	$	1.368691	$	1.657454	$	1.372114	$	1.497880
M&E - 1.50% - Landmark	$	1.441919	$	1.601682	$	1.222547	$	1.414354
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.441919	$	1.601682	$	1.222547	$	1.414354
M&E - 1.50% - Freedom	$	1.989784	$	1.275952	$	1.565356	$	2.938816
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	1.987869	$	1.267967	$	1.785505	$	3.898286
M&E - 1.55% - Landmark ML	$	1.988155	$	1.267967	$	1.785829	$	3.898954
M&E - 1.65% - Freedom	$	1.941771	$	1.252237	$	1.530080	$	2.872489
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.375383	$	1.688023	$	1.437792	$	1.507453
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.375383	$	1.688023	$	1.437792	$	1.507453

See accompanying notes.

41

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON U.S. Government Securities Subaccount		TA T. Rowe Price Small Cap Subaccount		TA Morgan Stanley Active International Allocation Subaccount		TA Multi Managed Large Cap Core Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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	$	1.339783	$	1.644388	$	1.400618	$	1.468496
M&E - 2.05% - Landmark ML	$	1.339783	$	1.644388	$	1.400618	$	1.468496
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, 2012

	TA AEGON U.S. Government Securities Subaccount		TA T. Rowe Price Small Cap Subaccount		TA Morgan Stanley Active International Allocation Subaccount		TA Multi Managed Large Cap Core 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		66,588,024		7,706,394		2,141,080		3,321,673
M&E - 1.30% - Suntrust Landmark		426,502		55,054		16,170		99,394
M&E - 1.30% - Landmark Select		346,974		24,306		15,509		6,853
M&E - 1.30% - Huntington Landmark		2,321,693		227,870		108,346		51,601
M&E - 1.30% - Landmark ML		3,513,372		383,409		220,920		219,008
M&E - 1.30% - MEMBERS Landmark		14,336,945		464,121		1,251,139		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		18,523,399		3,080,701		978,162		1,491,543
M&E - 1.50% - Suntrust Landmark		7,860		6,519		54,636		10,593
M&E - 1.50% - Landmark Select		51,830		—		—		2,507
M&E - 1.50% - Huntington Landmark		2,006,577		80,679		3,184		21,585
M&E - 1.50% - Landmark ML		848,295		50,775		88,875		56,971
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		2,499,850		63,787		202,583		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		351,280		92,390		49,639		42,587
M&E - 1.70% - Freedom		5,813,325		1,308,170		571,743		1,059,892
M&E - 1.70% - MEMBERS Freedom		1,036,020		43,937		106,942		—
M&E - 1.80% - Landmark		8,914,864		352,512		159,351		829,197
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		10,534		27,975		—		—
M&E - 1.80% - Landmark ML		48,988		3,826		—		—

See accompanying notes.

43

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON U.S. Government Securities Subaccount		TA T. Rowe Price Small Cap Subaccount		TA Morgan Stanley Active International Allocation Subaccount		TA Multi Managed Large Cap Core Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		91,851		67,474		34,564		221,771
M&E - 1.90% - Freedom		803,419		110,766		136,401		285,565
M&E - 1.90% - MEMBERS Freedom		109,442		—		61,134		—
M&E - 1.95% - Landmark		748,938		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		16,693		—		—		—
M&E - 2.00% - Landmark		114,908		55,877		26,349		7,097
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		1,251		9,859		—		—
M&E - 2.00% - Landmark ML		17,401		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		94,159		136,381		307,683		218,585
M&E - 2.20% - Freedom		82,842		68,485		398,448		51,919
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, 2012

	TA AEGON U.S. Government Securities Subaccount		TA T. Rowe Price Small Cap Subaccount		TA Morgan Stanley Active International Allocation Subaccount		TA Multi Managed Large Cap Core 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	$	1.333006	$	2.252732	$	1.802010	$	1.714040
M&E - 1.30% - Suntrust Landmark	$	1.333006	$	2.252732	$	1.802010	$	1.714040
M&E - 1.30% - Landmark Select	$	1.333006	$	2.252732	$	1.802010	$	1.714040
M&E - 1.30% - Huntington Landmark	$	1.248834	$	1.313364	$	0.830474	$	1.097699
M&E - 1.30% - Landmark ML	$	1.333006	$	2.252732	$	1.802010	$	1.714040
M&E - 1.30% - MEMBERS Landmark	$	1.333006	$	2.252732	$	1.802010	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.307833	$	2.210107	$	1.767918	$	1.681660
M&E - 1.50% - Suntrust Landmark	$	1.307833	$	2.210107	$	1.767918	$	1.681660
M&E - 1.50% - Landmark Select	$	1.307833	$	2.210107	$	1.767918	$	1.681660
M&E - 1.50% - Huntington Landmark	$	1.235845	$	1.299696	$	0.821808	$	1.086242
M&E - 1.50% - Landmark ML	$	1.307833	$	2.210107	$	1.767918	$	1.681660
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	1.307833	$	2.210107	$	1.767918	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	1.289293	$	2.178803	$	1.742871	$	1.657811
M&E - 1.70% - Freedom	$	1.302033	$	1.290932	$	0.907488	$	1.185363
M&E - 1.70% - MEMBERS Freedom	$	1.302033	$	1.290932	$	0.907488	$	—
M&E - 1.80% - Landmark	$	1.271027	$	2.147901	$	1.718178	$	1.634299
M&E - 1.80% - Suntrust Landmark	$	1.271027	$	2.147901	$	1.718178	$	1.634299
M&E - 1.80% - Landmark Select	$	1.271027	$	2.147901	$	1.718178	$	1.634299
M&E - 1.80% - Huntington Landmark	$	1.216607	$	1.279479	$	0.809044	$	1.069346
M&E - 1.80% - Landmark ML	$	1.271027	$	2.147901	$	1.718178	$	1.634299

See accompanying notes.

45

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON U.S. Government Securities Subaccount		TA T. Rowe Price Small Cap Subaccount		TA Morgan Stanley Active International Allocation Subaccount		TA Multi Managed Large Cap Core Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.264960	$	2.137749	$	1.710041	$	1.626568
M&E - 1.90% - Freedom	$	1.285051	$	1.274113	$	0.895692	$	1.169915
M&E - 1.90% - MEMBERS Freedom	$	1.285051	$	1.274113	$	0.895692	$	—
M&E - 1.95% - Landmark	$	1.273956	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	1.165209	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	1.165209	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	1.165209	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.247108	$	2.107490	$	1.685868	$	1.603525
M&E - 2.00% - Suntrust Landmark	$	1.247108	$	2.107490	$	1.685868	$	1.603525
M&E - 2.00% - Landmark Select	$	1.247108	$	2.107490	$	1.685868	$	1.603525
M&E - 2.00% - Huntington Landmark	$	1.203984	$	1.266176	$	0.800621	$	1.058254
M&E - 2.00% - Landmark ML	$	1.247108	$	2.107490	$	1.685868	$	1.603525
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	1.229512	$	2.077783	$	1.662032	$	1.580887
M&E - 2.20% - Freedom	$	1.260092	$	1.249343	$	0.878267	$	1.147169
M&E - 2.30% - Landmark	$	1.212121	$	2.048453	$	1.638577	$	1.558600
M&E - 2.30% - Suntrust Landmark	$	1.212121	$	2.048453	$	1.638577	$	1.558600
M&E - 2.30% - Landmark Select	$	1.212121	$	2.048453	$	1.638577	$	1.558600
M&E - 2.30% - Huntington Landmark	$	1.185341	$	1.246577	$	0.788222	$	1.041861
M&E - 2.30% - Landmark ML	$	1.212121	$	2.048453	$	1.638577	$	1.558600
M&E - 2.35% - Freedom	$	1.142855	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	1.137353	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	1.137353	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	1.137353	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	1.137353	$	—	$	—	$	—

See accompanying notes.

46

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Money Market Subaccount		TA Morgan Stanley Mid-Cap Growth Subaccount		TA AEGON U.S. Government Securities - PAM - SC Subaccount		TA International Moderate Growth - SC Subaccount
Assets
Investment in securities:
Number of shares - Initial		120,438,340.080		2,498,456.334		—		—
Cost	$	120,438,340	$	64,887,095	$	—	$	—
Number of shares - Service		124,431,166.910		814,730.686		4,516,980.301		19,718,223.024
Cost	$	124,431,167	$	23,076,778	$	60,993,556	$	166,909,415
Investments in mutual funds, Level 1 quoted prices at net asset value	$	244,869,507	$	92,478,647	$	60,843,725	$	177,069,643
Receivable for units sold		—		—		68		—
Total assets		244,869,507		92,478,647		60,843,793		177,069,643
Liabilities
Payable for units redeemed		90		57		—		98
Total net assets	$	244,869,417	$	92,478,590	$	60,843,793	$	177,069,545
Net Assets:
Deferred annuity contracts terminable by owners	$	244,869,417	$	92,478,590	$	60,843,793	$	177,069,545
Total net assets	$	244,869,417	$	92,478,590	$	60,843,793	$	177,069,545

See accompanying notes.

47

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Money Market		TA Morgan Stanley Mid-Cap Growth		TA AEGON U.S. Government Securities - PAM - SC		TA International Moderate Growth - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		4,705,082		4,575,233		—		—
M&E - 1.25% - Landmark ML		1,214,235		966,158		—		—
M&E - 1.25% - Freedom		601,488		264,853		—		—
M&E - 1.30% - Landmark		13,764,546		5,820,382		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		—		—		—		—
M&E - 1.30% - Landmark ML		1,464,841		470,600		—		—
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
M&E - 1.40% - Landmark		6,522,077		1,895,813		—		—
M&E - 1.40% - Landmark ML		2,195,016		677,985		—		—
M&E - 1.40% - Freedom		3,623,365		815,854		—		—
M&E - 1.50% - Landmark		16,646,481		12,043,197		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		—		—		—
M&E - 1.50% - Landmark ML		1,074,409		2,949,237		—		—
M&E - 1.50% - Freedom		82,597		96,984		—		—
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		41,944,552		27,502,792		—		—
M&E - 1.55% - Landmark ML		3,406,337		4,281,549		—		—
M&E - 1.65% - Freedom		1,025,756		232,637		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	TA AEGON Money Market		TA Morgan Stanley Mid-Cap Growth		TA AEGON U.S. Government Securities - PAM - SC		TA International Moderate Growth - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	TA AEGON Money Market		TA Morgan Stanley Mid-Cap Growth		TA AEGON U.S. Government Securities - PAM - SC		TA International Moderate Growth - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.054856	$	1.100950	$	—	$	—
M&E - 1.25% - Landmark ML	$	1.054856	$	1.100950	$	—	$	—
M&E - 1.25% - Freedom	$	0.987067	$	1.236822	$	—	$	—
M&E - 1.30% - Landmark	$	1.036989	$	1.486673	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.036989	$	1.486673	$	—	$	—
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	1.404323	$	1.082014	$	—	$	—
M&E - 1.40% - Landmark ML	$	1.404323	$	1.082014	$	—	$	—
M&E - 1.40% - Freedom	$	1.036687	$	1.628247	$	—	$	—
M&E - 1.50% - Landmark	$	1.024875	$	1.069631	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.024875	$	1.069631	$	—	$	—
M&E - 1.50% - Freedom	$	1.300610	$	1.069631	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	1.372316	$	1.063501	$	—	$	—
M&E - 1.55% - Landmark ML	$	1.372548	$	1.063501	$	—	$	—
M&E - 1.65% - Freedom	$	1.271250	$	1.051340	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	0.983914	$	1.410517	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	0.983914	$	1.410517	$	—	$	—

See accompanying notes.

50

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Money Market		TA Morgan Stanley Mid-Cap Growth		TA AEGON U.S. Government Securities - PAM - SC		TA International Moderate Growth - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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	$	0.958448	$	1.374025	$	—	$	—
M&E - 2.05% - Landmark ML	$	0.958448	$	1.374025	$	—	$	—
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, 2012

	TA AEGON Money Market		TA Morgan Stanley Mid-Cap Growth		TA AEGON U.S. Government Securities - PAM - SC		TA International Moderate Growth - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		499,804
M&E - 1.25% - Landmark ML		—		—		—		—
M&E - 1.25% - Freedom		—		—		—		99,124
M&E - 1.30% - Landmark		65,360,108		6,411,545		24,379,510		100,007,855
M&E - 1.30% - Suntrust Landmark		449,887		30,580		1,845,037		224,323
M&E - 1.30% - Landmark Select		1,020,335		19,298		1,995,770		950,493
M&E - 1.30% - Huntington Landmark		1,333,094		68,244		452,862		4,364,042
M&E - 1.30% - Landmark ML		3,567,891		138,550		915,205		11,543,735
M&E - 1.30% - MEMBERS Landmark		6,841,742		700,004		448,330		—
M&E - 1.40% - Landmark		—		—		20,492		176,369
M&E - 1.40% - Landmark ML		—		—		10,646		43,020
M&E - 1.40% - Freedom		—		—		35,132		123,873
M&E - 1.50% - Landmark		22,808,457		2,985,309		10,508,431		31,385,377
M&E - 1.50% - Suntrust Landmark		428,225		2,829		434,093		19,895
M&E - 1.50% - Landmark Select		99,377		21,997		1,198,675		212,438
M&E - 1.50% - Huntington Landmark		105,342		250,120		115,772		2,165,741
M&E - 1.50% - Landmark ML		910,259		40,744		1,216,400		2,972,645
M&E - 1.50% - Freedom		—		—		—		76,246
M&E - 1.50% - MEMBERS Landmark		932,709		108,981		31,564		—
M&E - 1.55% - Landmark		—		—		—		3,570,100
M&E - 1.55% - Landmark ML		—		—		—		397,124
M&E - 1.65% - Freedom		373,346		60,662		696,306		395,177
M&E - 1.70% - Freedom		5,540,065		1,102,088		170,823		8,181,725
M&E - 1.70% - MEMBERS Freedom		391,853		48,194		11,725		—
M&E - 1.80% - Landmark		4,439,245		126,484		287,061		5,522,043
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		40,111
M&E - 1.80% - Huntington Landmark		304,139		—		—		737,733
M&E - 1.80% - Landmark ML		105,680		—		—		215,490

See accompanying notes.

52

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Money Market		TA Morgan Stanley Mid-Cap Growth		TA AEGON U.S. Government Securities - PAM - SC		TA International Moderate Growth - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		205,547		40,817		554,393		25,533
M&E - 1.90% - Freedom		2,146,958		169,350		604,310		1,617,649
M&E - 1.90% - MEMBERS Freedom		103,900		10,180		—		—
M&E - 1.95% - Landmark		4,933,921		—		—		3,049,461
M&E - 1.95% - Landmark Select		—		—		—		49,741
M&E - 1.95% - Huntington Landmark		—		—		—		21,696
M&E - 1.95% - Landmark ML		18,599		—		—		651,515
M&E - 2.00% - Landmark		189,563		64,195		97,862		1,176,676
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		65,550
M&E - 2.00% - Landmark ML		—		—		—		395,410
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		65,662		60,962		—		486,862
M&E - 2.20% - Freedom		249,508		32,922		—		461,947
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		26,493		—		—		855,574
M&E - 2.45% - Landmark		11,072		—		—		17,011
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, 2012

	TA AEGON Money Market		TA Morgan Stanley Mid-Cap Growth		TA AEGON U.S. Government Securities - PAM - SC		TA International Moderate Growth - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	1.356996	$	0.981688
M&E - 1.25% - Landmark ML	$	—	$	—	$	1.356996	$	0.981688
M&E - 1.25% - Freedom	$	—	$	—	$	1.268588	$	0.910209
M&E - 1.30% - Landmark	$	1.023982	$	1.890470	$	1.333006	$	0.978437
M&E - 1.30% - Suntrust Landmark	$	1.023982	$	1.890470	$	1.333006	$	0.978437
M&E - 1.30% - Landmark Select	$	1.023982	$	1.890470	$	1.333006	$	0.978437
M&E - 1.30% - Huntington Landmark	$	0.967366	$	1.184984	$	1.248834	$	0.917291
M&E - 1.30% - Landmark ML	$	1.023982	$	1.890470	$	1.333006	$	0.978437
M&E - 1.30% - MEMBERS Landmark	$	1.023982	$	1.890470	$	1.333006	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	1.338732	$	0.972012
M&E - 1.40% - Landmark ML	$	—	$	—	$	1.338732	$	0.972012
M&E - 1.40% - Freedom	$	—	$	—	$	1.339496	$	0.972012
M&E - 1.50% - Landmark	$	1.004609	$	1.854746	$	1.307833	$	0.965634
M&E - 1.50% - Suntrust Landmark	$	1.004609	$	1.854746	$	1.307833	$	0.965634
M&E - 1.50% - Landmark Select	$	1.004609	$	1.854746	$	1.307833	$	0.965634
M&E - 1.50% - Huntington Landmark	$	0.957298	$	1.172621	$	1.235845	$	0.907718
M&E - 1.50% - Landmark ML	$	1.004609	$	1.854746	$	1.307833	$	0.965634
M&E - 1.50% - Freedom	$	—	$	—	$	1.326677	$	0.965634
M&E - 1.50% - MEMBERS Landmark	$	1.004609	$	1.854746	$	1.307833	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	1.320708	$	0.962486
M&E - 1.55% - Landmark ML	$	—	$	—	$	1.320708	$	0.962486
M&E - 1.65% - Freedom	$	0.990348	$	1.828439	$	1.289293	$	0.956156
M&E - 1.70% - Freedom	$	0.986477	$	1.272439	$	1.302033	$	0.953048
M&E - 1.70% - MEMBERS Freedom	$	0.986477	$	1.272439	$	1.302033	$	—
M&E - 1.80% - Landmark	$	0.976319	$	1.802560	$	1.271027	$	0.946795
M&E - 1.80% - Suntrust Landmark	$	0.976319	$	1.802560	$	1.271027	$	0.946795
M&E - 1.80% - Landmark Select	$	0.976319	$	1.802560	$	1.292240	$	0.946795
M&E - 1.80% - Huntington Landmark	$	0.942392	$	1.154375	$	1.216607	$	0.893600
M&E - 1.80% - Landmark ML	$	0.976319	$	1.802560	$	1.271027	$	0.946795

See accompanying notes.

54

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Money Market		TA Morgan Stanley Mid-Cap Growth		TA AEGON U.S. Government Securities - PAM - SC		TA International Moderate Growth - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	0.971684	$	1.793938	$	1.264960	$	0.943729
M&E - 1.90% - Freedom	$	0.973625	$	1.255837	$	1.285051	$	0.940599
M&E - 1.90% - MEMBERS Freedom	$	0.973625	$	1.255837	$	1.285051	$	—
M&E - 1.95% - Landmark	$	0.969581	$	—	$	—	$	0.937530
M&E - 1.95% - Landmark Select	$	0.926620	$	—	$	—	$	0.939715
M&E - 1.95% - Huntington Landmark	$	0.926620	$	—	$	—	$	0.939715
M&E - 1.95% - Landmark ML	$	0.926620	$	—	$	—	$	0.939715
M&E - 2.00% - Landmark	$	0.957970	$	1.768610	$	1.247108	$	0.934481
M&E - 2.00% - Suntrust Landmark	$	0.957970	$	1.768610	$	1.247108	$	0.934481
M&E - 2.00% - Landmark Select	$	0.957970	$	1.768610	$	1.247108	$	0.934481
M&E - 2.00% - Huntington Landmark	$	0.932610	$	1.142389	$	1.203984	$	0.884335
M&E - 2.00% - Landmark ML	$	0.957970	$	1.768610	$	1.247108	$	0.934481
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	0.931412
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	0.931412
M&E - 2.15% - Freedom	$	0.944437	$	1.743638	$	—	$	0.925351
M&E - 2.20% - Freedom	$	0.954728	$	1.231463	$	—	$	0.922320
M&E - 2.30% - Landmark	$	0.931098	$	1.719024	$	—	$	0.916325
M&E - 2.30% - Suntrust Landmark	$	0.931098	$	1.719024	$	—	$	0.916325
M&E - 2.30% - Landmark Select	$	0.931098	$	1.719024	$	—	$	0.916325
M&E - 2.30% - Huntington Landmark	$	0.918183	$	1.124677	$	—	$	0.870646
M&E - 2.30% - Landmark ML	$	0.931098	$	1.719024	$	—	$	0.916325
M&E - 2.35% - Freedom	$	0.908831	$	—	$	—	$	0.921691
M&E - 2.45% - Landmark	$	0.904471	$	—	$	—	$	0.917245
M&E - 2.45% - Landmark Select	$	0.904471	$	—	$	—	$	0.917245
M&E - 2.45% - Huntington Landmark	$	0.904471	$	—	$	—	$	0.917245
M&E - 2.45% - Landmark ML	$	0.904471	$	—	$	—	$	0.917245

See accompanying notes.

55

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Balanced - SC		TA Vanguard ETF Index - Growth - SC		TA Efficient Markets - SC		TA BlackRock Global Allocation - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Assets
Investment in securities:
Number of shares - Initial		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Number of shares - Service		40,164,698.763		32,566,840.613		2,548,625.446		42,610,639.888
Cost	$	415,944,188	$	298,147,786	$	33,412,862	$	548,308,925
Investments in mutual funds, Level 1 quoted prices at net asset value	$	432,573,806	$	311,990,333	$	34,788,737	$	568,852,043
Receivable for units sold		206		—		11		88
Total assets		432,574,012		311,990,333		34,788,748		568,852,131
Liabilities
Payable for units redeemed		—		45		—		—
Total net assets	$	432,574,012	$	311,990,288	$	34,788,748	$	568,852,131
Net Assets:
Deferred annuity contracts terminable by owners	$	432,574,012	$	311,990,288	$	34,788,748	$	568,852,131
Total net assets	$	432,574,012	$	311,990,288	$	34,788,748	$	568,852,131

See accompanying notes.

56

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Balanced - SC		TA Vanguard ETF Index - Growth - SC		TA Efficient Markets - SC		TA BlackRock Global Allocation - SC
	Subaccount		Subaccount		Subaccount		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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	TA Vanguard ETF Index - Balanced - SC		TA Vanguard ETF Index - Growth - SC		TA Efficient Markets - SC		TA BlackRock Global Allocation - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	TA Vanguard ETF Index - Balanced - SC		TA Vanguard ETF Index - Growth - SC		TA Efficient Markets - SC		TA BlackRock Global Allocation - SC
	Subaccount		Subaccount		Subaccount		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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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.

59

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Balanced - SC		TA Vanguard ETF Index - Growth - SC		TA Efficient Markets - SC		TA BlackRock Global Allocation - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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.

60

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Balanced - SC		TA Vanguard ETF Index - Growth - SC		TA Efficient Markets - SC		TA BlackRock Global Allocation - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		1,628,655		633,082		—		—
M&E - 1.25% - Landmark ML		—		—		—		376,229
M&E - 1.25% - Freedom		50,604		29,718		—		—
M&E - 1.30% - Landmark		249,377,054		178,715,773		16,537,206		231,569,069
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		145,753		777,077		—		—
M&E - 1.30% - Huntington Landmark		6,548,150		3,781,406		154,771		8,455,861
M&E - 1.30% - Landmark ML		27,963,095		19,990,317		373,196		48,480,672
M&E - 1.30% - MEMBERS Landmark		31,713,855		4,129,301		—		8,027,108
M&E - 1.40% - Landmark		163,386		75,097		—		—
M&E - 1.40% - Landmark ML		—		—		—		2,424,842
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		37,221,553		53,773,896		4,375,933		62,212,553
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		6,250		71,757		—		—
M&E - 1.50% - Huntington Landmark		2,195,926		2,609,953		13,378		2,591,853
M&E - 1.50% - Landmark ML		2,603,106		4,147,470		158,541		12,981,757
M&E - 1.50% - Freedom		—		2,966		—		—
M&E - 1.50% - MEMBERS Landmark		1,255,290		398,478		—		1,192,013
M&E - 1.55% - Landmark		2,870,292		1,563,535		—		—
M&E - 1.55% - Landmark ML		—		—		—		7,585,864
M&E - 1.65% - Freedom		111,157		210,749		—		—
M&E - 1.70% - Freedom		8,243,925		8,319,766		783,389		12,086,370
M&E - 1.70% - MEMBERS Freedom		2,316,831		531,316		—		674,259
M&E - 1.80% - Landmark		8,487,502		6,526,640		682,799		13,412,444
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		68,851		224,061		11,426		860,944
M&E - 1.80% - Landmark ML		1,478,715		554,725		33,193		4,851,653

See accompanying notes.

61

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Balanced - SC		TA Vanguard ETF Index - Growth - SC		TA Efficient Markets - SC		TA BlackRock Global Allocation - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		1,999		—		1,568		—
M&E - 1.90% - Freedom		1,137,625		1,402,188		132,663		2,787,045
M&E - 1.90% - MEMBERS Freedom		1,520		17,204		—		263,271
M&E - 1.95% - Landmark		4,182,467		5,033,364		687,403		—
M&E - 1.95% - Landmark Select		—		50,211		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		156,745		38,500		—
M&E - 2.00% - Landmark		1,568,358		1,858,479		276,437		2,910,739
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		11,126		—		52,352
M&E - 2.00% - Landmark ML		656,076		—		84,221		1,284,112
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		824,094		4,295		—		—
M&E - 2.20% - Freedom		—		—		—		268,991
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		109,564		25,022		49,257		—
M&E - 2.45% - Landmark		—		1,355,738		5,761		—
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, 2012

	TA Vanguard ETF Index - Balanced - SC		TA Vanguard ETF Index - Growth - SC		TA Efficient Markets - SC		TA BlackRock Global Allocation - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	1.168742	$	1.200284	$	—	$	—
M&E - 1.25% - Landmark ML	$	1.105780	$	1.056043	$	—	$	1.344073
M&E - 1.25% - Freedom	$	1.168742	$	1.200284	$	—	$	—
M&E - 1.30% - Landmark	$	1.103217	$	1.053646	$	1.431601	$	1.341634
M&E - 1.30% - Suntrust Landmark	$	1.103217	$	1.053646	$	1.180735	$	—
M&E - 1.30% - Landmark Select	$	1.103217	$	1.053646	$	1.431601	$	—
M&E - 1.30% - Huntington Landmark	$	1.103217	$	1.053646	$	1.431601	$	1.341634
M&E - 1.30% - Landmark ML	$	1.103217	$	1.053646	$	1.431601	$	1.341634
M&E - 1.30% - MEMBERS Landmark	$	1.103217	$	1.053646	$	—	$	1.341634
M&E - 1.40% - Landmark	$	1.163345	$	1.194752	$	—	$	—
M&E - 1.40% - Landmark ML	$	1.098161	$	1.048774	$	—	$	1.336776
M&E - 1.40% - Freedom	$	1.163345	$	1.194752	$	—	$	—
M&E - 1.50% - Landmark	$	1.093104	$	1.043955	$	1.419962	$	1.331962
M&E - 1.50% - Suntrust Landmark	$	1.093104	$	1.043955	$	1.173491	$	—
M&E - 1.50% - Landmark Select	$	1.093104	$	1.043955	$	1.419962	$	—
M&E - 1.50% - Huntington Landmark	$	1.093104	$	1.043955	$	1.419962	$	1.331962
M&E - 1.50% - Landmark ML	$	1.093104	$	1.043955	$	1.419962	$	1.331962
M&E - 1.50% - Freedom	$	1.159763	$	1.191058	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	1.093104	$	1.043955	$	—	$	1.331962
M&E - 1.55% - Landmark	$	1.158006	$	1.189222	$	—	$	—
M&E - 1.55% - Landmark ML	$	1.090599	$	1.041556	$	—	$	1.329572
M&E - 1.65% - Freedom	$	1.085619	$	1.036789	$	1.411298	$	—
M&E - 1.70% - Freedom	$	1.083107	$	1.034414	$	1.408406	$	1.322389
M&E - 1.70% - MEMBERS Freedom	$	1.083107	$	1.034414	$	—	$	1.322389
M&E - 1.80% - Landmark	$	1.078133	$	1.029644	$	1.402676	$	1.317636
M&E - 1.80% - Suntrust Landmark	$	1.078133	$	1.029644	$	1.162723	$	—
M&E - 1.80% - Landmark Select	$	1.078133	$	1.029644	$	1.402676	$	—
M&E - 1.80% - Huntington Landmark	$	1.078133	$	1.029644	$	1.402676	$	1.317636
M&E - 1.80% - Landmark ML	$	1.078133	$	1.029644	$	1.402676	$	1.317636

See accompanying notes.

63

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Balanced - SC		TA Vanguard ETF Index - Growth - SC		TA Efficient Markets - SC		TA BlackRock Global Allocation - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.075684	$	1.027307	$	1.399826	$	—
M&E - 1.90% - Freedom	$	1.073216	$	1.024959	$	1.396995	$	1.312916
M&E - 1.90% - MEMBERS Freedom	$	1.073216	$	1.024959	$	—	$	1.312916
M&E - 1.95% - Landmark	$	1.070743	$	1.022629	$	1.394176	$	—
M&E - 1.95% - Landmark Select	$	1.070743	$	1.022629	$	1.394176	$	—
M&E - 1.95% - Huntington Landmark	$	1.070743	$	1.022629	$	1.394176	$	—
M&E - 1.95% - Landmark ML	$	1.070743	$	1.022629	$	1.394176	$	—
M&E - 2.00% - Landmark	$	1.068293	$	1.020265	$	1.391323	$	1.308202
M&E - 2.00% - Suntrust Landmark	$	1.068293	$	1.020265	$	1.155634	$	—
M&E - 2.00% - Landmark Select	$	1.068293	$	1.020265	$	1.391323	$	—
M&E - 2.00% - Huntington Landmark	$	1.068293	$	1.020265	$	1.391323	$	1.308202
M&E - 2.00% - Landmark ML	$	1.068293	$	1.020265	$	1.391323	$	1.308202
M&E - 2.05% - Landmark	$	1.140391	$	1.171166	$	—	$	—
M&E - 2.05% - Landmark ML	$	1.065864	$	1.017919	$	—	$	1.305835
M&E - 2.15% - Freedom	$	1.060992	$	1.013286	$	1.382909	$	—
M&E - 2.20% - Freedom	$	1.058585	$	1.010963	$	1.380081	$	1.298814
M&E - 2.30% - Landmark	$	1.053722	$	1.006375	$	1.374493	$	1.294176
M&E - 2.30% - Suntrust Landmark	$	1.053722	$	1.006375	$	1.145069	$	—
M&E - 2.30% - Landmark Select	$	1.053722	$	1.006375	$	1.374493	$	—
M&E - 2.30% - Huntington Landmark	$	1.053722	$	1.006375	$	1.374493	$	1.294176
M&E - 2.30% - Landmark ML	$	1.053722	$	1.006375	$	1.374493	$	1.294176
M&E - 2.35% - Freedom	$	1.051338	$	1.004059	$	1.371725	$	—
M&E - 2.45% - Landmark	$	1.046565	$	0.999482	$	1.366201	$	—
M&E - 2.45% - Landmark Select	$	1.046565	$	0.999482	$	1.366201	$	—
M&E - 2.45% - Huntington Landmark	$	1.046565	$	0.999482	$	1.366201	$	—
M&E - 2.45% - Landmark ML	$	1.046565	$	0.999482	$	1.366201	$	—

See accompanying notes.

64

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA BlackRock Tactical Allocation - SC Subaccount		TA ProFunds UltraBear - OAM - SC Subaccount		TA Janus Balanced  - SC Subaccount		TA PIMCO Tactical - Growth - SC Subaccount
Assets
Investment in securities:
Number of shares - Initial		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Number of shares - Service		26,483,922.856		19,276,828.590		3,732,926.079		1,873,328.203
Cost	$	365,763,396	$	54,484,797	$	38,832,475	$	19,738,404
Investments in mutual funds, Level 1 quoted prices at net asset value	$	384,811,399	$	45,300,547	$	39,643,675	$	18,377,350
Receivable for units sold		59		—		54		—
Total assets		384,811,458		45,300,547		39,643,729		18,377,350
Liabilities
Payable for units redeemed		—		54		—		21
Total net assets	$	384,811,458	$	45,300,493	$	39,643,729	$	18,377,329
Net Assets:
Deferred annuity contracts terminable by owners	$	384,811,458	$	45,300,493	$	39,643,729	$	18,377,329
Total net assets	$	384,811,458	$	45,300,493	$	39,643,729	$	18,377,329

See accompanying notes.

65

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA BlackRock Tactical Allocation - SC Subaccount		TA ProFunds UltraBear - OAM - SC Subaccount		TA Janus Balanced  - SC Subaccount		TA PIMCO Tactical - Growth - 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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	TA BlackRock Tactical Allocation - SC Subaccount		TA ProFunds UltraBear - OAM - SC Subaccount		TA Janus Balanced  - SC Subaccount		TA PIMCO Tactical - Growth - SC Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	TA BlackRock Tactical Allocation - SC Subaccount		TA ProFunds UltraBear - OAM - SC Subaccount		TA Janus Balanced  - SC Subaccount		TA PIMCO Tactical - Growth - 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	TA BlackRock Tactical Allocation - SC Subaccount		TA ProFunds UltraBear - OAM - SC Subaccount		TA Janus Balanced  - SC Subaccount		TA PIMCO Tactical - Growth - SC Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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, 2012

	TA BlackRock Tactical Allocation - SC Subaccount		TA ProFunds UltraBear - OAM - SC Subaccount		TA Janus Balanced  - SC Subaccount		TA PIMCO Tactical - Growth - SC Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		1,881,233		—		—		—
M&E - 1.25% - Landmark ML		115,386		—		—		—
M&E - 1.25% - Freedom		120,371		—		—		—
M&E - 1.30% - Landmark		149,014,659		127,357,592		25,251,167		13,697,031
M&E - 1.30% - Suntrust Landmark		10,554		—		—		—
M&E - 1.30% - Landmark Select		71,728		—		—		—
M&E - 1.30% - Huntington Landmark		8,971,196		5,114,352		501,278		43,113
M&E - 1.30% - Landmark ML		13,938,681		5,438,426		863,145		109,789
M&E - 1.30% - MEMBERS Landmark		5,157,620		1,137,702		1,039,506		581,453
M&E - 1.40% - Landmark		1,234,605		—		—		—
M&E - 1.40% - Landmark ML		332,590		—		—		—
M&E - 1.40% - Freedom		685,807		—		—		—
M&E - 1.50% - Landmark		42,476,650		44,485,551		8,808,583		5,184,332
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		26,101		—		—		—
M&E - 1.50% - Huntington Landmark		2,476,136		2,533,044		56,335		18,813
M&E - 1.50% - Landmark ML		1,820,281		793,602		227,354		31,855
M&E - 1.50% - Freedom		691,830		—		—		—
M&E - 1.50% - MEMBERS Landmark		653,190		472,412		510,274		116,415
M&E - 1.55% - Landmark		15,986,116		—		—		137,033
M&E - 1.55% - Landmark ML		198,176		—		—		—
M&E - 1.65% - Freedom		497,614		—		—		—
M&E - 1.70% - Freedom		8,907,838		7,074,715		1,331,865		356,208
M&E - 1.70% - MEMBERS Freedom		113,448		—		236,690		8,769
M&E - 1.80% - Landmark		4,432,269		3,626,975		798,039		428,458
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		1,036,683		454,503		8,341		1,450
M&E - 1.80% - Landmark ML		542,558		353,544		27,559		—

See accompanying notes.

70

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA BlackRock Tactical Allocation - SC Subaccount		TA ProFunds UltraBear - OAM - SC Subaccount		TA Janus Balanced  - SC Subaccount		TA PIMCO Tactical - Growth - SC Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		856,504		—		—		—
M&E - 1.90% - Freedom		1,651,167		2,201,970		567,246		161,666
M&E - 1.90% - MEMBERS Freedom		24,859		—		14,536		—
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		908,159		1,565,762		210,630		320,940
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		17,547		12,359		2,902		—
M&E - 2.00% - Landmark ML		404,916		148,420		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		52,103		—		—		—
M&E - 2.20% - Freedom		38,835		—		52,047		—
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.

71

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA BlackRock Tactical Allocation - SC Subaccount		TA ProFunds UltraBear - OAM - SC Subaccount		TA Janus Balanced  - SC Subaccount		TA PIMCO Tactical - Growth - SC Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	1.227411	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	1.227411	$	—	$	—	$	—
M&E - 1.25% - Freedom	$	1.227411	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	1.476025	$	0.224097	$	0.981275	$	0.868392
M&E - 1.30% - Suntrust Landmark	$	1.225513	$	—	$	0.981275	$	0.868392
M&E - 1.30% - Landmark Select	$	1.225513	$	—	$	0.981275	$	0.868392
M&E - 1.30% - Huntington Landmark	$	1.476025	$	0.224097	$	0.981275	$	0.868392
M&E - 1.30% - Landmark ML	$	1.476025	$	0.224097	$	0.981275	$	0.868392
M&E - 1.30% - MEMBERS Landmark	$	1.476025	$	0.224097	$	0.981275	$	0.868392
M&E - 1.40% - Landmark	$	1.221728	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	1.221728	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	1.221728	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.465379	$	0.222465	$	0.975267	$	0.863059
M&E - 1.50% - Suntrust Landmark	$	1.217987	$	—	$	0.975267	$	0.863059
M&E - 1.50% - Landmark Select	$	1.217987	$	—	$	0.975267	$	0.863059
M&E - 1.50% - Huntington Landmark	$	1.465379	$	0.222465	$	0.975267	$	0.863059
M&E - 1.50% - Landmark ML	$	1.465379	$	0.222465	$	0.975267	$	0.863059
M&E - 1.50% - Freedom	$	1.217987	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	1.465379	$	0.222465	$	0.975267	$	0.863059
M&E - 1.55% - Landmark	$	1.216138	$	—	$	—	$	0.987536
M&E - 1.55% - Landmark ML	$	1.216138	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	1.212389	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	1.454844	$	0.220871	$	0.969277	$	0.857782
M&E - 1.70% - MEMBERS Freedom	$	1.454844	$	0.220871	$	0.969277	$	0.857782
M&E - 1.80% - Landmark	$	1.449592	$	0.220060	$	0.966310	$	0.855161
M&E - 1.80% - Suntrust Landmark	$	1.206852	$	—	$	0.966310	$	0.855161
M&E - 1.80% - Landmark Select	$	1.206852	$	—	$	0.966310	$	0.855161
M&E - 1.80% - Huntington Landmark	$	1.449592	$	0.220060	$	0.966310	$	0.855161
M&E - 1.80% - Landmark ML	$	1.449592	$	0.220060	$	0.966310	$	0.855161

See accompanying notes.

72

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA BlackRock Tactical Allocation - SC Subaccount		TA ProFunds UltraBear - OAM - SC Subaccount		TA Janus Balanced  - SC Subaccount		TA PIMCO Tactical - Growth - SC Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.204989	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	1.444391	$	0.219265	$	0.963352	$	0.852535
M&E - 1.90% - MEMBERS Freedom	$	1.444391	$	0.219265	$	0.963352	$	0.852535
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	$	1.439207	$	0.218481	$	0.960410	$	0.849935
M&E - 2.00% - Suntrust Landmark	$	1.199467	$	—	$	0.960410	$	0.849935
M&E - 2.00% - Landmark Select	$	1.199467	$	—	$	0.960410	$	0.849935
M&E - 2.00% - Huntington Landmark	$	1.439207	$	0.218481	$	0.960410	$	0.849935
M&E - 2.00% - Landmark ML	$	1.439207	$	0.218481	$	0.960410	$	0.849935
M&E - 2.05% - Landmark	$	1.197634	$	—	$	—	$	0.986143
M&E - 2.05% - Landmark ML	$	1.197634	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	1.193974	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	1.428879	$	—	$	0.954537	$	0.844763
M&E - 2.30% - Landmark	$	1.423761	$	—	$	0.951641	$	0.842170
M&E - 2.30% - Suntrust Landmark	$	1.188512	$	—	$	0.951641	$	0.842170
M&E - 2.30% - Landmark Select	$	1.188512	$	—	$	0.951641	$	0.842170
M&E - 2.30% - Huntington Landmark	$	1.423761	$	—	$	0.951641	$	0.842170
M&E - 2.30% - Landmark ML	$	1.423761	$	—	$	0.951641	$	0.842170
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.

73

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA PIMCO Tactical - Conservative - SC		TA PIMCO Tactical - Balanced - SC		TA Hanlon Income - SC		TA Vanguard ETF Index - Conservative - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Assets
Investment in securities:
Number of shares - Initial		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Number of shares - Service		2,239,269.463		3,715,283.461		10,333,080.677		9,746,411.196
Cost	$	23,678,618	$	39,521,017	$	115,205,153	$	109,955,845
Investments in mutual funds, Level 1 quoted prices at net asset value	$	22,706,192	$	38,453,184	$	116,557,150	$	113,935,547
Receivable for units sold		—		39		124		—
Total assets		22,706,192		38,453,223		116,557,274		113,935,547
Liabilities
Payable for units redeemed		19		—		—		97
Total net assets	$	22,706,173	$	38,453,223	$	116,557,274	$	113,935,450
Net Assets:
Deferred annuity contracts terminable by owners	$	22,706,173	$	38,453,223	$	116,557,274	$	113,935,450
Total net assets	$	22,706,173	$	38,453,223	$	116,557,274	$	113,935,450

See accompanying notes.

74

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA PIMCO Tactical - Conservative - SC		TA PIMCO Tactical - Balanced - SC		TA Hanlon Income - SC		TA Vanguard ETF Index - Conservative - SC
	Subaccount		Subaccount		Subaccount		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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	TA PIMCO Tactical - Conservative - SC		TA PIMCO Tactical - Balanced - SC		TA Hanlon Income - SC		TA Vanguard ETF Index - Conservative - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	TA PIMCO Tactical - Conservative - SC		TA PIMCO Tactical - Balanced - SC		TA Hanlon Income - SC		TA Vanguard ETF Index - Conservative - SC
	Subaccount		Subaccount		Subaccount		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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	TA PIMCO Tactical - Conservative - SC		TA PIMCO Tactical - Balanced - SC		TA Hanlon Income - SC		TA Vanguard ETF Index - Conservative - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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, 2012

	TA PIMCO Tactical - Conservative - SC		TA PIMCO Tactical - Balanced - SC		TA Hanlon Income - SC		TA Vanguard ETF Index - Conservative - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		—		—		—		14,190
M&E - 1.25% - Landmark ML		—		—		—		47,946
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		16,098,700		25,317,730		84,662,743		57,188,091
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		230,429		155,527		20,844		771,275
M&E - 1.30% - Landmark ML		83,085		893,750		7,960		4,815,382
M&E - 1.30% - MEMBERS Landmark		1,245,562		2,008,822		—		14,089,393
M&E - 1.40% - Landmark		—		—		—		189,857
M&E - 1.40% - Landmark ML		—		—		—		4,888
M&E - 1.40% - Freedom		—		—		—		93,741
M&E - 1.50% - Landmark		4,559,703		7,575,919		16,207,809		7,822,991
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		82,562		39,934		21,282		371,871
M&E - 1.50% - Landmark ML		—		194,584		40,604		388,060
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		303,701		250,410		—		782,637
M&E - 1.55% - Landmark		313,394		271,524		—		1,716,962
M&E - 1.55% - Landmark ML		—		—		—		96,184
M&E - 1.65% - Freedom		—		—		—		112,064
M&E - 1.70% - Freedom		999,548		4,101,379		8,585,576		4,085,523
M&E - 1.70% - MEMBERS Freedom		12,695		91,480		—		444,179
M&E - 1.80% - Landmark		418,748		346,524		2,015,173		4,997,181
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		192,154		—		121,320

See accompanying notes.

79

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA PIMCO Tactical - Conservative - SC		TA PIMCO Tactical - Balanced - SC		TA Hanlon Income - SC		TA Vanguard ETF Index - Conservative - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		726,329		71,811		1,300,849		286,172
M&E - 1.90% - MEMBERS Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		—		6,759
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		56,243		60,681		602,633		318,494
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		2,707
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		—		103,672		—		—
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.

80

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA PIMCO Tactical - Conservative - SC		TA PIMCO Tactical - Balanced - SC		TA Hanlon Income - SC		TA Vanguard ETF Index - Conservative - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	1.157932
M&E - 1.25% - Landmark ML	$	—	$	—	$	—	$	1.157932
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	1.157932
M&E - 1.30% - Landmark	$	0.904680	$	0.924764	$	1.029727	$	1.156129
M&E - 1.30% - Suntrust Landmark	$	0.904680	$	0.924764	$	1.029727	$	1.156129
M&E - 1.30% - Landmark Select	$	0.904680	$	0.924764	$	1.029727	$	1.156129
M&E - 1.30% - Huntington Landmark	$	0.904680	$	0.924764	$	1.029727	$	1.156129
M&E - 1.30% - Landmark ML	$	0.904680	$	0.924764	$	1.029727	$	1.156129
M&E - 1.30% - MEMBERS Landmark	$	0.904680	$	0.924764	$	—	$	1.156129
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	1.152583
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	1.152583
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	1.152583
M&E - 1.50% - Landmark	$	0.899120	$	0.919103	$	1.023367	$	1.149041
M&E - 1.50% - Suntrust Landmark	$	0.899120	$	0.919103	$	1.023367	$	1.149041
M&E - 1.50% - Landmark Select	$	0.899120	$	0.919103	$	1.023367	$	1.149041
M&E - 1.50% - Huntington Landmark	$	0.899120	$	0.919103	$	1.023367	$	1.149041
M&E - 1.50% - Landmark ML	$	0.899120	$	0.919103	$	1.023367	$	1.149041
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	1.149041
M&E - 1.50% - MEMBERS Landmark	$	0.899120	$	0.919103	$	—	$	1.149041
M&E - 1.55% - Landmark	$	0.995588	$	0.992710	$	—	$	1.147291
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	1.147291
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	1.143767
M&E - 1.70% - Freedom	$	0.893621	$	0.913472	$	1.017107	$	1.141997
M&E - 1.70% - MEMBERS Freedom	$	0.893621	$	0.913472	$	—	$	1.141997
M&E - 1.80% - Landmark	$	0.890882	$	0.910655	$	1.014015	$	1.138517
M&E - 1.80% - Suntrust Landmark	$	0.890882	$	0.910655	$	1.014015	$	1.138517
M&E - 1.80% - Landmark Select	$	0.890882	$	0.910655	$	1.014015	$	1.138517
M&E - 1.80% - Huntington Landmark	$	0.890882	$	0.910655	$	1.014015	$	1.138517
M&E - 1.80% - Landmark ML	$	0.890882	$	0.910655	$	1.014015	$	1.138517

See accompanying notes.

81

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA PIMCO Tactical - Conservative - SC		TA PIMCO Tactical - Balanced - SC		TA Hanlon Income - SC		TA Vanguard ETF Index - Conservative - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	1.136766
M&E - 1.90% - Freedom	$	0.888152	$	0.907874	$	1.010902	$	1.135030
M&E - 1.90% - MEMBERS Freedom	$	0.888152	$	0.907874	$	—	$	1.135030
M&E - 1.95% - Landmark	$	—	$	—	$	—	$	1.133279
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	1.133279
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	1.133279
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	1.133279
M&E - 2.00% - Landmark	$	0.885453	$	0.905090	$	1.007808	$	1.131562
M&E - 2.00% - Suntrust Landmark	$	0.885453	$	0.905090	$	1.007808	$	1.131562
M&E - 2.00% - Landmark Select	$	0.885453	$	0.905090	$	1.007808	$	1.131562
M&E - 2.00% - Huntington Landmark	$	0.885453	$	0.905090	$	1.007808	$	1.131562
M&E - 2.00% - Landmark ML	$	0.885453	$	0.905090	$	1.007808	$	1.131562
M&E - 2.05% - Landmark	$	0.994180	$	0.991308	$	—	$	1.129832
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	1.129832
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	1.126394
M&E - 2.20% - Freedom	$	0.880028	$	0.899575	$	1.001677	$	1.124660
M&E - 2.30% - Landmark	$	0.877347	$	0.896845	$	0.998617	$	1.121227
M&E - 2.30% - Suntrust Landmark	$	0.877347	$	0.896845	$	0.998617	$	1.121227
M&E - 2.30% - Landmark Select	$	0.877347	$	0.896845	$	0.998617	$	1.121227
M&E - 2.30% - Huntington Landmark	$	0.877347	$	0.896845	$	0.998617	$	1.121227
M&E - 2.30% - Landmark ML	$	0.877347	$	0.896845	$	0.998617	$	1.121227
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	1.119538
M&E - 2.45% - Landmark	$	—	$	—	$	—	$	1.116124
M&E - 2.45% - Landmark Select	$	—	$	—	$	—	$	1.116124
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	—	$	1.116124
M&E - 2.45% - Landmark ML	$	—	$	—	$	—	$	1.116124

See accompanying notes.

82

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Aggressive Growth - SC		TA JPMorgan Mid Cap Value - SC		TA PIMCO Real Return TIPS - SC		TA Madison Balanced Allocation - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Assets
Investment in securities:
Number of shares - Initial		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Number of shares - Service		2,427,152.528		1,708,876.037		6,554,079.111		2,635,078.339
Cost	$	29,221,740	$	24,426,550	$	72,052,827	$	26,239,938
Investments in mutual funds, Level 1 quoted prices at net asset value	$	30,824,837	$	27,547,082	$	73,864,472	$	27,510,218
Receivable for units sold		15		—		32		52
Total assets		30,824,852		27,547,082		73,864,504		27,510,270
Liabilities
Payable for units redeemed		—		22		—		—
Total net assets	$	30,824,852	$	27,547,060	$	73,864,504	$	27,510,270
Net Assets:
Deferred annuity contracts terminable by owners	$	30,824,852	$	27,547,060	$	73,864,504	$	27,510,270
Total net assets	$	30,824,852	$	27,547,060	$	73,864,504	$	27,510,270

See accompanying notes.

83

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Aggressive Growth - SC		TA JPMorgan Mid Cap Value - SC		TA PIMCO Real Return TIPS - SC		TA Madison Balanced Allocation - SC
	Subaccount		Subaccount		Subaccount		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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	TA Vanguard ETF Index - Aggressive Growth - SC		TA JPMorgan Mid Cap Value - SC		TA PIMCO Real Return TIPS - SC		TA Madison Balanced Allocation - SC
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	TA Vanguard ETF Index - Aggressive Growth - SC Subaccount		TA JPMorgan Mid Cap Value - SC Subaccount		TA PIMCO Real Return TIPS - SC Subaccount		TA Madison Balanced Allocation - 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	TA Vanguard ETF Index - Aggressive Growth - SC Subaccount		TA JPMorgan Mid Cap Value - SC Subaccount		TA PIMCO Real Return TIPS - SC Subaccount		TA Madison Balanced Allocation - SC Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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, 2012

	TA Vanguard ETF Index - Aggressive Growth - SC Subaccount			TA JPMorgan Mid Cap Value - SC Subaccount		TA PIMCO Real Return TIPS - SC Subaccount		TA Madison Balanced Allocation - SC Subaccount
Accumulation units outstanding: Service
M&E - 1.25% - Landmark		83,702			318,566		—		—
M&E - 1.25% - Landmark ML		—			895		—		—
M&E - 1.25% - Freedom		—			58,015		—		—
M&E - 1.30% - Landmark		12,261,263			6,140,157		36,379,768		—
M&E - 1.30% - Suntrust Landmark		—			—		—		—
M&E - 1.30% - Landmark Select		—			—		296,627		—
M&E - 1.30% - Huntington Landmark		1,654,518			33,654		1,755,033		—
M&E - 1.30% - Landmark ML		843,612			95,508		3,603,776		—
M&E - 1.30% - MEMBERS Landmark		245,159			—		8,492,800		21,967,563
M&E - 1.40% - Landmark		140,159			389,670		—		—
M&E - 1.40% - Landmark ML		66,068			79,775		—		—
M&E - 1.40% - Freedom		(6	)		1,524,591		—		—
M&E - 1.50% - Landmark		3,649,526			3,966,492		8,101,269		—
M&E - 1.50% - Suntrust Landmark		—			—		—		—
M&E - 1.50% - Landmark Select		—			—		—		—
M&E - 1.50% - Huntington Landmark		—			27,801		180,426		—
M&E - 1.50% - Landmark ML		368,163			115,306		879,606		—
M&E - 1.50% - Freedom		—			28,660		—		—
M&E - 1.50% - MEMBERS Landmark		457,984			—		541,814		4,483,400
M&E - 1.55% - Landmark		3,590,661			4,434,939		—		—
M&E - 1.55% - Landmark ML		128,745			245,197		—		—
M&E - 1.65% - Freedom		35,040			391,342		—		—
M&E - 1.70% - Freedom		508,335			646,709		4,040,760		—
M&E - 1.70% - MEMBERS Freedom		135,708			—		465,043		200,785
M&E - 1.80% - Landmark		121,643			30,126		446,192		—
M&E - 1.80% - Suntrust Landmark		—			—		—		—
M&E - 1.80% - Landmark Select		—			—		—		—
M&E - 1.80% - Huntington Landmark		—			—		34,395		—
M&E - 1.80% - Landmark ML		—			—		206,155		—

See accompanying notes.

88

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Aggressive Growth - SC Subaccount		TA JPMorgan Mid Cap Value - SC Subaccount		TA PIMCO Real Return TIPS - SC Subaccount		TA Madison Balanced Allocation - SC Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		1,846		—		—
M&E - 1.90% - Freedom		183,060		26,708		410,507		—
M&E - 1.90% - MEMBERS Freedom		—		—		62,877		39,500
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		8,323		33,107		56,851		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		4,000		—
M&E - 2.00% - Landmark ML		—		—		40,389		—
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.

89

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Aggressive Growth - SC Subaccount		TA JPMorgan Mid Cap Value - SC Subaccount		TA PIMCO Real Return TIPS - SC Subaccount		TA Madison Balanced Allocation - SC Subaccount
Accumulation unit value: Service
M&E - 1.25% - Landmark	$	1.264668	$	1.490639	$	—	$	—
M&E - 1.25% - Landmark ML	$	1.264668	$	1.490639	$	—	$	—
M&E - 1.25% - Freedom	$	1.264668	$	1.490639	$	—	$	—
M&E - 1.30% - Landmark	$	1.262709	$	1.488347	$	1.120422	$	—
M&E - 1.30% - Suntrust Landmark	$	1.262709	$	1.488347	$	—	$	—
M&E - 1.30% - Landmark Select	$	1.262709	$	1.488347	$	1.120422	$	—
M&E - 1.30% - Huntington Landmark	$	1.262709	$	1.488347	$	1.120422	$	—
M&E - 1.30% - Landmark ML	$	1.262709	$	1.488347	$	1.120422	$	—
M&E - 1.30% - MEMBERS Landmark	$	1.262709	$	—	$	1.120422	$	1.031321
M&E - 1.40% - Landmark	$	1.258834	$	1.483777	$	—	$	—
M&E - 1.40% - Landmark ML	$	1.258834	$	1.483777	$	—	$	—
M&E - 1.40% - Freedom	$	1.258834	$	1.483777	$	—	$	—
M&E - 1.50% - Landmark	$	1.254972	$	1.479221	$	1.116750	$	—
M&E - 1.50% - Suntrust Landmark	$	1.254972	$	1.479221	$	—	$	—
M&E - 1.50% - Landmark Select	$	1.254972	$	1.479221	$	1.116750	$	—
M&E - 1.50% - Huntington Landmark	$	1.254972	$	1.479221	$	1.116750	$	—
M&E - 1.50% - Landmark ML	$	1.254972	$	1.479221	$	1.116750	$	—
M&E - 1.50% - Freedom	$	1.254972	$	1.479221	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	1.254972	$	—	$	1.116750	$	1.027927
M&E - 1.55% - Landmark	$	1.253052	$	1.476936	$	—	$	—
M&E - 1.55% - Landmark ML	$	1.253052	$	1.476936	$	—	$	—
M&E - 1.65% - Freedom	$	1.249196	$	1.472415	$	—	$	—
M&E - 1.70% - Freedom	$	1.247294	$	1.470161	$	1.113096	$	—
M&E - 1.70% - MEMBERS Freedom	$	1.247294	$	—	$	1.113096	$	1.024552
M&E - 1.80% - Landmark	$	1.243479	$	1.465660	$	1.111260	$	—
M&E - 1.80% - Suntrust Landmark	$	1.243479	$	1.465660	$	—	$	—
M&E - 1.80% - Landmark Select	$	1.243479	$	1.465660	$	1.111260	$	—
M&E - 1.80% - Huntington Landmark	$	1.243479	$	1.465660	$	1.111260	$	—
M&E - 1.80% - Landmark ML	$	1.243479	$	1.465660	$	1.111260	$	—

See accompanying notes.

90

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Vanguard ETF Index - Aggressive Growth - SC Subaccount		TA JPMorgan Mid Cap Value - SC Subaccount		TA PIMCO Real Return TIPS - SC Subaccount		TA Madison Balanced Allocation - SC Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	1.241582	$	1.463400	$	—	$	—
M&E - 1.90% - Freedom	$	1.239661	$	1.461173	$	1.109433	$	—
M&E - 1.90% - MEMBERS Freedom	$	1.239661	$	—	$	1.109433	$	1.021206
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	$	1.235883	$	1.456707	$	1.107636	$	—
M&E - 2.00% - Suntrust Landmark	$	1.235883	$	1.456707	$	—	$	—
M&E - 2.00% - Landmark Select	$	1.235883	$	1.456707	$	1.107636	$	—
M&E - 2.00% - Huntington Landmark	$	1.235883	$	1.456707	$	1.107636	$	—
M&E - 2.00% - Landmark ML	$	1.235883	$	1.456707	$	1.107636	$	—
M&E - 2.05% - Landmark	$	1.233988	$	1.454481	$	—	$	—
M&E - 2.05% - Landmark ML	$	1.233988	$	1.454481	$	—	$	—
M&E - 2.15% - Freedom	$	1.230226	$	1.450047	$	—	$	—
M&E - 2.20% - Freedom	$	1.228355	$	1.447843	$	1.104014	$	—
M&E - 2.30% - Landmark	$	1.224601	$	1.443428	$	1.102224	$	—
M&E - 2.30% - Suntrust Landmark	$	1.224601	$	1.443428	$	—	$	—
M&E - 2.30% - Landmark Select	$	1.224601	$	1.443428	$	1.102224	$	—
M&E - 2.30% - Huntington Landmark	$	1.224601	$	1.443428	$	1.102224	$	—
M&E - 2.30% - Landmark ML	$	1.224601	$	1.443428	$	1.102224	$	—
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, 2012

	TA Madison Diversified  Income - SC Subaccount		TA  Madison Conservative Allocation - SC Subaccount		TA AEGON  Tactical Vanguard ETF - Growth - SC Subaccount		TA AEGON Tactical Vanguard ETF - Balanced - SC Subaccount
Assets
Investment in securities:
Number of shares - Initial		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Number of shares - Service		4,069,490.036		2,955,673.610		8,502,260.841		11,024,705.154
Cost	$	42,450,465	$	30,207,126	$	82,388,989	$	111,623,032
Investments in mutual funds, Level 1 quoted prices at net asset value	$	43,909,797	$	31,152,800	$	87,063,151	$	115,538,910
Receivable for units sold		—		—		74		21
Total assets		43,909,797		31,152,800		87,063,225		115,538,931
Liabilities
Payable for units redeemed		20		13		—		—
Total net assets	$	43,909,777	$	31,152,787	$	87,063,225	$	115,538,931
Net Assets:
Deferred annuity contracts terminable by owners	$	43,909,777	$	31,152,787	$	87,063,225	$	115,538,931
Total net assets	$	43,909,777	$	31,152,787	$	87,063,225	$	115,538,931

See accompanying notes.

92

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Madison Diversified  Income - SC Subaccount		TA Madison Conservative Allocation - SC Subaccount		TA AEGON Tactical Vanguard ETF - Growth - SC Subaccount		TA AEGON Tactical Vanguard ETF - Balanced - 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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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.

93

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Madison Diversified Income - SC Subaccount		TA Madison Conservative Allocation - SC Subaccount		TA AEGON Tactical Vanguard ETF - Growth - SC Subaccount		TA AEGON Tactical Vanguard ETF - Balanced - SC Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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.

94

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Madison Diversified Income - SC Subaccount		TA Madison Conservative Allocation - SC Subaccount		TA AEGON Tactical Vanguard ETF - Growth - SC Subaccount		TA AEGON Tactical Vanguard ETF - Balanced - 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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.

95

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Madison Diversified Income - SC Subaccount		TA Madison Conservative Allocation - SC Subaccount		TA AEGON Tactical Vanguard ETF - Growth - SC Subaccount		TA AEGON Tactical Vanguard ETF - Balanced - SC Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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.

96

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Madison Diversified Income - SC Subaccount		TA Madison Conservative Allocation - SC Subaccount		TA AEGON Tactical Vanguard ETF - Growth - SC Subaccount		TA AEGON Tactical Vanguard ETF - Balanced - 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		—		—		53,769,572		76,581,809
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		38,603
M&E - 1.30% - Huntington Landmark		—		—		1,119,476		3,237,582
M&E - 1.30% - Landmark ML		—		—		3,144,735		6,123,958
M&E - 1.30% - MEMBERS Landmark		37,688,618		25,015,566		1,240,372		4,458,988
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		—		—		16,341,437		11,400,792
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		6,663
M&E - 1.50% - Huntington Landmark		—		—		817,684		546,462
M&E - 1.50% - Landmark ML		—		—		661,202		975,397
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		2,350,432		3,258,292		294,018		198,312
M&E - 1.55% - Landmark		—		—		3,005,733		673,212
M&E - 1.55% - Landmark ML		—		—		37,401		53,538
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		2,033,036		3,508,369
M&E - 1.70% - MEMBERS Freedom		1,120,933		896,142		—		241,241
M&E - 1.80% - Landmark		—		—		1,002,256		1,241,451
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		307,043		691
M&E - 1.80% - Landmark ML		—		—		45,713		385,688

See accompanying notes.

97

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Madison Diversified Income - SC Subaccount		TA Madison Conservative Allocation - SC Subaccount		TA AEGON Tactical Vanguard ETF - Growth - SC Subaccount		TA AEGON Tactical Vanguard ETF - Balanced - SC Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		1,008,178		2,542,416
M&E - 1.90% - MEMBERS Freedom		407,075		882,061		—		—
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		—		—		1,469,689		262,359
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		24,671		—
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		—		—		50,621		20,124
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, 2012

	TA Madison Diversified Income - SC Subaccount		TA Madison Conservative Allocation - SC Subaccount		TA AEGON Tactical Vanguard ETF - Growth - SC Subaccount		TA AEGON Tactical Vanguard ETF - Balanced - 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	$	—	$	—	$	1.008787	$	1.028090
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	1.008787	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	1.008787	$	1.028090
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	1.008787	$	1.028090
M&E - 1.30% - Landmark ML	$	—	$	—	$	1.008787	$	1.028090
M&E - 1.30% - MEMBERS Landmark	$	1.056846	$	1.037498	$	1.008787	$	1.028090
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	—	$	—	$	1.005469	$	1.024706
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	1.005469	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	1.005469	$	1.024706
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	1.005469	$	1.024706
M&E - 1.50% - Landmark ML	$	—	$	—	$	1.005469	$	1.024706
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	1.053359	$	1.034089	$	1.005469	$	1.024706
M&E - 1.55% - Landmark	$	—	$	—	$	1.023287	$	1.019352
M&E - 1.55% - Landmark ML	$	—	$	—	$	1.023287	$	1.019352
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	1.002173	$	1.021349
M&E - 1.70% - MEMBERS Freedom	$	1.049902	$	1.030709	$	1.002173	$	1.021349
M&E - 1.80% - Landmark	$	—	$	—	$	1.000532	$	1.019665
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	1.000532	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	1.000532	$	1.019665
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	1.000532	$	1.019665
M&E - 1.80% - Landmark ML	$	—	$	—	$	1.000532	$	1.019665

See accompanying notes.

99

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Madison Diversified  Income - SC Subaccount		TA Madison Conservative Allocation - SC Subaccount		TA AEGON Tactical Vanguard ETF - Growth - SC Subaccount		TA AEGON Tactical Vanguard ETF - Balanced - SC Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	0.998889	$	1.018008
M&E - 1.90% - MEMBERS Freedom	$	1.046474	$	1.027324	$	0.998889	$	1.018008
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	$	—	$	—	$	0.997255	$	1.016336
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	0.997255	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	0.997255	$	1.016336
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	0.997255	$	1.016336
M&E - 2.00% - Landmark ML	$	—	$	—	$	0.997255	$	1.016336
M&E - 2.05% - Landmark	$	—	$	—	$	1.019941	$	1.016011
M&E - 2.05% - Landmark ML	$	—	$	—	$	1.019941	$	1.016011
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	—	$	—	$	0.994006	$	1.013009
M&E - 2.30% - Landmark	$	—	$	—	$	0.992384	$	1.011360
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	0.992384	$	—
M&E - 2.30% - Landmark Select	$	—	$	—	$	0.992384	$	1.011360
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	0.992384	$	1.011360
M&E - 2.30% - Landmark ML	$	—	$	—	$	0.992384	$	1.011360
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.

100

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Tactical Vanguard ETF - Conservative - SC Subaccount		TA JPMorgan Core Bond - SC Subaccount		TA JPMorgan Tactical Allocation - SC Subaccount		TA Legg Mason Dynamic Allocation - Balanced - SC
Assets
Investment in securities:
Number of shares - Initial		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Number of shares - Service		9,833,460.886		2,252,570.824		9,481,654.719		3,024,187.538
Cost	$	98,648,757	$	31,402,237	$	122,087,875	$	30,562,315
Investments in mutual funds, Level 1 quoted prices at net asset value	$	103,054,670	$	31,761,249	$	126,580,090	$	30,816,471
Receivable for units sold		200		5		—		—
Total assets		103,054,870		31,761,254		126,580,090		30,816,471
Liabilities
Payable for units redeemed		—		—		74		34
Total net assets	$	103,054,870	$	31,761,254	$	126,580,016	$	30,816,437
Net Assets:
Deferred annuity contracts terminable by owners	$	103,054,870	$	31,761,254	$	126,580,016	$	30,816,437
Total net assets	$	103,054,870	$	31,761,254	$	126,580,016	$	30,816,437

See accompanying notes.

101

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Tactical Vanguard ETF - Conservative - SC Subaccount		TA JPMorgan Core Bond - SC Subaccount		TA JPMorgan Tactical Allocation - SC Subaccount		TA Legg Mason Dynamic Allocation - Balanced - SC
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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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.

102

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Tactical Vanguard ETF - Conservative - SC Subaccount		TA JPMorgan Core Bond - SC Subaccount		TA JPMorgan Tactical Allocation - SC Subaccount		TA Legg Mason Dynamic Allocation - Balanced - SC
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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.

103

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Tactical Vanguard ETF - Conservative - SC Subaccount		TA JPMorgan Core Bond - SC Subaccount		TA JPMorgan Tactical Allocation - SC Subaccount		TA Legg Mason Dynamic Allocation - Balanced - SC
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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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.

104

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Tactical Vanguard ETF - Conservative - SC Subaccount		TA JPMorgan Core Bond - SC Subaccount		TA JPMorgan Tactical Allocation - SC Subaccount		TA Legg Mason Dynamic Allocation - Balanced - SC
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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.

105

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Tactical Vanguard ETF - Conservative - SC Subaccount		TA JPMorgan Core Bond - SC Subaccount		TA JPMorgan Tactical Allocation - SC Subaccount		TA Legg Mason Dynamic Allocation - Balanced - SC
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		63,831,221		19,350,253		78,988,181		17,388,684
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		40,120		16,606		—
M&E - 1.30% - Huntington Landmark		1,357,690		412,407		5,327,251		552,365
M&E - 1.30% - Landmark ML		4,038,656		2,741,577		11,960,520		3,780,793
M&E - 1.30% - MEMBERS Landmark		6,338,241		—		—		3,551,981
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		11,942,569		4,299,515		12,456,648		2,823,178
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		532,025		116,889		1,211,632		85,003
M&E - 1.50% - Landmark ML		497,262		437,108		1,843,429		247,909
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		739,525		—		—		311,636
M&E - 1.55% - Landmark		975,265		—		—		105,645
M&E - 1.55% - Landmark ML		13,230		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		5,262,541		1,316,595		3,908,706		1,159,647
M&E - 1.70% - MEMBERS Freedom		655,197		—		—		16,040
M&E - 1.80% - Landmark		1,486,765		272,210		1,417,242		76,149
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		82,583		—		34,494		686
M&E - 1.80% - Landmark ML		487,642		31,461		1,570,236		243,371

See accompanying notes.

106

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Tactical Vanguard ETF - Conservative - SC Subaccount		TA JPMorgan Core Bond - SC Subaccount		TA JPMorgan Tactical Allocation - SC Subaccount		TA Legg Mason Dynamic Allocation - Balanced - SC
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		646,037		202,744		618,968		170,597
M&E - 1.90% - MEMBERS Freedom		60,594		—		—		—
M&E - 1.95% - Landmark		230,370		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		466,644		151,638		134,769		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		97,229		43,635		376,447		—
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, 2012

	TA AEGON Tactical Vanguard ETF - Conservative - SC Subaccount		TA JPMorgan Core Bond - SC Subaccount		TA JPMorgan Tactical Allocation - SC Subaccount		TA Legg Mason Dynamic Allocation - Balanced - SC
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	$	1.034599	$	1.080866	$	1.057019	$	1.010238
M&E - 1.30% - Suntrust Landmark	$	1.034599	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	1.034599	$	1.080866	$	1.057019	$	—
M&E - 1.30% - Huntington Landmark	$	1.034599	$	1.080866	$	1.057019	$	1.010238
M&E - 1.30% - Landmark ML	$	1.034599	$	1.080866	$	1.057019	$	1.010238
M&E - 1.30% - MEMBERS Landmark	$	1.034599	$	—	$	—	$	1.010238
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.031189	$	1.077338	$	1.053540	$	1.008908
M&E - 1.50% - Suntrust Landmark	$	1.031189	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	1.031189	$	1.077338	$	1.053540	$	—
M&E - 1.50% - Huntington Landmark	$	1.031189	$	1.077338	$	1.053540	$	1.008908
M&E - 1.50% - Landmark ML	$	1.031189	$	1.077338	$	1.053540	$	1.008908
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	1.031189	$	—	$	—	$	1.008908
M&E - 1.55% - Landmark	$	1.017816	$	—	$	—	$	1.008581
M&E - 1.55% - Landmark ML	$	1.017816	$	—	$	—	$	1.008581
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	1.027806	$	1.073796	$	1.050102	$	1.007584
M&E - 1.70% - MEMBERS Freedom	$	1.027806	$	—	$	—	$	1.007584
M&E - 1.80% - Landmark	$	1.026124	$	1.072035	$	1.048376	$	1.006923
M&E - 1.80% - Suntrust Landmark	$	1.026124	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	1.026124	$	1.072035	$	1.048376	$	—
M&E - 1.80% - Huntington Landmark	$	1.026124	$	1.072035	$	1.048376	$	1.006923
M&E - 1.80% - Landmark ML	$	1.026124	$	1.072035	$	1.048376	$	1.006923

See accompanying notes.

108

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA AEGON Tactical Vanguard ETF - Conservative - SC Subaccount		TA JPMorgan Core Bond - SC Subaccount		TA JPMorgan Tactical Allocation - SC Subaccount		TA Legg Mason Dynamic Allocation - Balanced - SC
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	1.024432	$	1.070287	$	1.046658	$	1.006254
M&E - 1.90% - MEMBERS Freedom	$	1.024432	$	—	$	—	$	1.006254
M&E - 1.95% - Landmark	$	1.023603	$	—	$	—	$	1.005932
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.022771	$	1.068543	$	1.044944	$	1.005607
M&E - 2.00% - Suntrust Landmark	$	1.022771	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	1.022771	$	1.068543	$	1.044944	$	—
M&E - 2.00% - Huntington Landmark	$	1.022771	$	1.068543	$	1.044944	$	1.005607
M&E - 2.00% - Landmark ML	$	1.022771	$	1.068543	$	1.044944	$	1.005607
M&E - 2.05% - Landmark	$	1.014482	$	—	$	—	$	1.005271
M&E - 2.05% - Landmark ML	$	1.014482	$	—	$	—	$	1.005271
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	1.019435	$	1.065045	$	1.041531	$	—
M&E - 2.30% - Landmark	$	1.017785	$	1.063310	$	1.039838	$	—
M&E - 2.30% - Suntrust Landmark	$	1.017785	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	1.017785	$	1.063310	$	1.039838	$	—
M&E - 2.30% - Huntington Landmark	$	1.017785	$	1.063310	$	1.039838	$	—
M&E - 2.30% - Landmark ML	$	1.017785	$	1.063310	$	1.039838	$	—
M&E - 2.35% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	1.047037	$	—	$	—	$	—
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, 2012

	TA Legg Mason Dynamic Allocation - Growth - SC		TA Market Participation Strategy - SC		Invesco Van Kampen V.I. Value Opportunities Subaccount		Invesco Van Kampen V.I. American Franchise Subaccount
Assets
Investment in securities:
Number of shares - Initial		—		—		2,628,444.594		142,470.019
Cost	$	—	$	—	$	13,181,200	$	5,202,237
Number of shares - Service		953,417.998		638,596.351		—		—
Cost	$	9,559,679	$	6,298,173	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	9,667,658	$	6,347,648	$	18,583,103	$	5,064,809
Receivable for units sold		25		—		15		2
Total assets		9,667,683		6,347,648		18,583,118		5,064,811
Liabilities
Payable for units redeemed		—		23		—		—
Total net assets	$	9,667,683	$	6,347,625	$	18,583,118	$	5,064,811
Net Assets:
Deferred annuity contracts terminable by owners	$	9,667,683	$	6,347,625	$	18,583,118	$	5,064,811
Total net assets	$	9,667,683	$	6,347,625	$	18,583,118	$	5,064,811

See accompanying notes.

110

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Legg Mason Dynamic Allocation - Growth - SC		TA Market Participation Strategy - SC		Invesco Van Kampen V.I. Value Opportunities Subaccount		Invesco Van Kampen V.I. American Franchise Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—		983,248		178,951
M&E - 1.25% - Landmark ML		—		—		2,998		3,931
M&E - 1.25% - Freedom		—		—		46,421		—
M&E - 1.30% - Landmark		—		—		4,660,921		1,948,280
M&E - 1.30% - Suntrust Landmark		—		—		140,982		—
M&E - 1.30% - Landmark Select		—		—		10,428		25,630
M&E - 1.30% - Huntington Landmark		—		—		188,319		74,825
M&E - 1.30% - Landmark ML		—		—		228,381		—
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
M&E - 1.40% - Landmark		—		—		203,995		60,836
M&E - 1.40% - Landmark ML		—		—		116,464		37,965
M&E - 1.40% - Freedom		—		—		125,776		6,834
M&E - 1.50% - Landmark		—		—		1,763,552		425,366
M&E - 1.50% - Suntrust Landmark		—		—		—		190
M&E - 1.50% - Landmark Select		—		—		—		36,613
M&E - 1.50% - Huntington Landmark		—		—		12,707		13,311
M&E - 1.50% - Landmark ML		—		—		44,640		40,393
M&E - 1.50% - Freedom		—		—		122,255		15,358
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		8,278,051		1,741,311
M&E - 1.55% - Landmark ML		—		—		903,302		438,675
M&E - 1.65% - Freedom		—		—		48,334		53,038
M&E - 1.70% - Freedom		—		—		221,619		75,427
M&E - 1.70% - MEMBERS Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		145,863		37,614
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		13,974
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, 2012

	TA Legg Mason Dynamic Allocation - Growth - SC		TA Market Participation Strategy - SC		Invesco Van Kampen V.I. Value Opportunities Subaccount		Invesco Van Kampen V.I. American Franchise Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		78,674		1,805
M&E - 1.90% - Freedom		—		—		47,269		19,076
M&E - 1.90% - MEMBERS 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		—		—		4,671		5,887
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		—		—		77,668		—
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.

112

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Legg Mason Dynamic Allocation - Growth - SC		TA Market Participation Strategy - SC		Invesco Van Kampen V.I. Value Opportunities Subaccount		Invesco Van Kampen V.I. American Franchise Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—	$	1.032385	$	0.964999
M&E - 1.25% - Landmark ML	$	—	$	—	$	1.032385	$	0.964999
M&E - 1.25% - Freedom	$	—	$	—	$	0.776039	$	0.964999
M&E - 1.30% - Landmark	$	—	$	—	$	1.026935	$	0.964665
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	1.026935	$	0.964665
M&E - 1.30% - Landmark Select	$	—	$	—	$	1.026935	$	0.964665
M&E - 1.30% - Huntington Landmark	$	—	$	—	$	0.805842	$	0.964665
M&E - 1.30% - Landmark ML	$	—	$	—	$	1.026935	$	0.964665
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	1.016170	$	0.964032
M&E - 1.40% - Landmark ML	$	—	$	—	$	1.016170	$	0.964032
M&E - 1.40% - Freedom	$	—	$	—	$	0.991573	$	0.964032
M&E - 1.50% - Landmark	$	—	$	—	$	1.005530	$	0.963374
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	1.005530	$	0.963374
M&E - 1.50% - Landmark Select	$	—	$	—	$	1.005530	$	0.963374
M&E - 1.50% - Huntington Landmark	$	—	$	—	$	0.797463	$	0.963374
M&E - 1.50% - Landmark ML	$	—	$	—	$	1.005530	$	0.963374
M&E - 1.50% - Freedom	$	—	$	—	$	1.005530	$	0.963374
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	1.000243	$	0.963057
M&E - 1.55% - Landmark ML	$	—	$	—	$	1.000243	$	0.963057
M&E - 1.65% - Freedom	$	—	$	—	$	0.989806	$	0.962417
M&E - 1.70% - Freedom	$	—	$	—	$	0.839720	$	0.962082
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	0.974332	$	0.961445
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	0.974332	$	0.961445
M&E - 1.80% - Landmark Select	$	—	$	—	$	0.974332	$	0.961445
M&E - 1.80% - Huntington Landmark	$	—	$	—	$	0.785033	$	0.961445
M&E - 1.80% - Landmark ML	$	—	$	—	$	0.974332	$	0.961445

See accompanying notes.

113

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Legg Mason Dynamic Allocation - Growth - SC		TA Market Participation Strategy - SC		Invesco Van Kampen V.I. Value Opportunities Subaccount		Invesco Van Kampen V.I. American Franchise Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	1.261236	$	0.961131
M&E - 1.90% - Freedom	$	—	$	—	$	0.828764	$	0.960808
M&E - 1.90% - MEMBERS 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	$	—	$	—	$	1.243394	$	0.960163
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	1.243394	$	0.960163
M&E - 2.00% - Landmark Select	$	—	$	—	$	1.243394	$	0.960163
M&E - 2.00% - Huntington Landmark	$	—	$	—	$	0.776873	$	0.960163
M&E - 2.00% - Landmark ML	$	—	$	—	$	1.243394	$	0.960163
M&E - 2.05% - Landmark	$	—	$	—	$	0.949092	$	0.959848
M&E - 2.05% - Landmark ML	$	—	$	—	$	0.949092	$	0.959848
M&E - 2.15% - Freedom	$	—	$	—	$	1.225828	$	0.959203
M&E - 2.20% - Freedom	$	—	$	—	$	0.812630	$	0.958890
M&E - 2.30% - Landmark	$	—	$	—	$	1.208522	$	0.958251
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	1.208522	$	0.958251
M&E - 2.30% - Landmark Select	$	—	$	—	$	1.208522	$	0.958251
M&E - 2.30% - Huntington Landmark	$	—	$	—	$	0.764838	$	0.958251
M&E - 2.30% - Landmark ML	$	—	$	—	$	1.208522	$	0.958251
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, 2012

	TA Legg Mason Dynamic Allocation - Growth - SC		TA Market Participation Strategy - SC		Invesco Van Kampen V.I. Value Opportunities Subaccount		Invesco Van Kampen V.I. American Franchise 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		4,802,382		3,616,341		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		48,621		58,485		—		—
M&E - 1.30% - Landmark ML		392,481		798,608		—		—
M&E - 1.30% - MEMBERS Landmark		2,196,590		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		1,433,985		1,368,853		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		53,798		—		—
M&E - 1.50% - Landmark ML		—		163,536		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		182,849		—		—		—
M&E - 1.55% - Landmark		195,516		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		184,213		116,554		—		—
M&E - 1.70% - MEMBERS Freedom		22,674		—		—		—
M&E - 1.80% - Landmark		112,449		30,661		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		—		—
M&E - 1.80% - Landmark ML		—		80,644		—		—

See accompanying notes.

115

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Legg Mason Dynamic Allocation - Growth - SC		TA Market Participation Strategy - SC		Invesco Van Kampen V.I. Value Opportunities Subaccount		Invesco Van Kampen V.I. American Franchise Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		33,482		93,058		—		—
M&E - 1.90% - MEMBERS 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		15,144		30,576		—		—
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, 2012

	TA Legg Mason Dynamic Allocation - Growth - SC		TA Market Participation Strategy - SC		Invesco Van Kampen V.I. Value Opportunities Subaccount		Invesco Van Kampen V.I. American Franchise 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	$	1.005291	$	0.990317	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	1.005291	$	0.990317	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.005291	$	0.990317	$	—	$	—
M&E - 1.30% - MEMBERS Landmark	$	1	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.003956	$	0.989747	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	1.003956	$	0.989747	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.003956	$	0.989747	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	1.003956	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	1.003629	$	0.989610	$	—	$	—
M&E - 1.55% - Landmark ML	$	1.003629	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	1.002635	$	0.989191	$	—	$	—
M&E - 1.70% - MEMBERS Freedom	$	1.002635	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.001982	$	0.988910	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	1.001982	$	0.988910	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.001982	$	0.988910	$	—	$	—

See accompanying notes.

117

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	TA Legg Mason Dynamic Allocation - Growth - SC		TA Market Participation Strategy - SC		Invesco Van Kampen V.I. Value Opportunities Subaccount		Invesco Van Kampen V.I. American Franchise Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	1.001328	$	0.988629	$	—	$	—
M&E - 1.90% - MEMBERS Freedom	$	1.001328	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	1.000988	$	0.988494	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.000675	$	0.988353	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	1.000675	$	0.988353	$	—	$	—
M&E - 2.00% - Landmark ML	$	1.000675	$	0.988353	$	—	$	—
M&E - 2.05% - Landmark	$	1.000348	$	1	$	—	$	—
M&E - 2.05% - Landmark ML	$	1.000348	$	—	$	—	$	—
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, 2012

	AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount		Janus Aspen - Enterprise Subaccount
Assets
Investment in securities:
Number of shares - Initial		2,913,838.776		682,388.160		2,775,828.070		347,632.286
Cost	$	57,731,609	$	17,437,197	$	30,579,174	$	10,786,343
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	60,199,909	$	20,730,952	$	33,337,695	$	15,010,762
Receivable for units sold		2		—		9		—
Total assets		60,199,911		20,730,952		33,337,704		15,010,762
Liabilities
Payable for units redeemed		—		14		—		34
Total net assets	$	60,199,911	$	20,730,938	$	33,337,704	$	15,010,728
Net Assets:
Deferred annuity contracts terminable by owners	$	60,199,911	$	20,730,938	$	33,337,704	$	15,010,728
Total net assets	$	60,199,911	$	20,730,938	$	33,337,704	$	15,010,728

See accompanying notes.

119

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount		Janus Aspen - Enterprise Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		3,132,005		867,482		—		719,356
M&E - 1.25% - Landmark ML		661,916		190,771		—		102,481
M&E - 1.25% - Freedom		245,596		96,222		—		27,932
M&E - 1.30% - Landmark		10,800,877		3,044,002		12,119,220		1,443,467
M&E - 1.30% - Suntrust Landmark		12,685		—		—		—
M&E - 1.30% - Landmark Select		—		10,764		9,288		3,768
M&E - 1.30% - Huntington Landmark		397,834		16,623		241,499		12,886
M&E - 1.30% - Landmark ML		828,047		559,724		729,401		26,189
M&E - 1.30% - MEMBERS Landmark		—		—		232,188		—
M&E - 1.40% - Landmark		1,090,567		415,483		—		595,129
M&E - 1.40% - Landmark ML		328,391		199,019		—		164,500
M&E - 1.40% - Freedom		709,650		39,414		—		330,812
M&E - 1.50% - Landmark		12,864,778		5,643,181		4,155,018		2,066,071
M&E - 1.50% - Suntrust Landmark		5,731		—		—		—
M&E - 1.50% - Landmark Select		33,212		—		—		—
M&E - 1.50% - Huntington Landmark		99,980		86,635		15,707		5,614
M&E - 1.50% - Landmark ML		3,634,420		1,907,287		1,605,561		433,963
M&E - 1.50% - Freedom		60,498		122,510		—		28,645
M&E - 1.50% - MEMBERS Landmark		—		—		88,160		—
M&E - 1.55% - Landmark		11,915,989		6,408,460		—		5,850,004
M&E - 1.55% - Landmark ML		1,757,990		1,423,374		—		1,296,348
M&E - 1.65% - Freedom		20,421		36,341		16,397		66,488
M&E - 1.70% - Freedom		1,463,811		299,751		1,427,904		147,372
M&E - 1.70% - MEMBERS Freedom		—		—		4,717		—
M&E - 1.80% - Landmark		106,704		72,656		992,565		24,264
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		6,372		—		10,612		—
M&E - 1.80% - Landmark ML		45,791		—		30,335		—

See accompanying notes.

120

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount		Janus Aspen - Enterprise Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		11,766		1,316		2,958		1,249
M&E - 1.90% - Freedom		12,950		24,093		904		22,343
M&E - 1.90% - MEMBERS Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		1,136,419		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		49,390		—
M&E - 2.00% - Landmark		26,252		53,365		337,480		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		12,481		—		29,337		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		295,627		173,806		—		80,092
M&E - 2.20% - Freedom		135,629		131,381		—		10,248
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		—		—		46,934		—
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, 2012

	AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount		Janus Aspen - Enterprise Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.186830	$	0.910853	$	—	$	1.418737
M&E - 1.25% - Landmark ML	$	1.186830	$	0.910853	$	—	$	1.418737
M&E - 1.25% - Freedom	$	0.937350	$	1.039502	$	—	$	1.202220
M&E - 1.30% - Landmark	$	1.308696	$	1.214190	$	1.440290	$	2.058824
M&E - 1.30% - Suntrust Landmark	$	1.308696	$	1.214190	$	—	$	2.058824
M&E - 1.30% - Landmark Select	$	1.308696	$	1.214190	$	1.440290	$	2.058824
M&E - 1.30% - Huntington Landmark	$	0.954551	$	1.023843	$	1.440290	$	1.188992
M&E - 1.30% - Landmark ML	$	1.308696	$	1.214190	$	1.440290	$	2.058824
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	1.440290	$	—
M&E - 1.40% - Landmark	$	1.166494	$	0.895253	$	—	$	0.727505
M&E - 1.40% - Landmark ML	$	1.166494	$	0.895253	$	—	$	0.727505
M&E - 1.40% - Freedom	$	1.236296	$	1.275754	$	—	$	1.859432
M&E - 1.50% - Landmark	$	1.153153	$	0.884994	$	1.428555	$	1.378468
M&E - 1.50% - Suntrust Landmark	$	1.153153	$	0.884994	$	—	$	1.378468
M&E - 1.50% - Landmark Select	$	1.153153	$	0.884994	$	1.428555	$	1.378468
M&E - 1.50% - Huntington Landmark	$	0.944631	$	1.013149	$	1.428555	$	1.176561
M&E - 1.50% - Landmark ML	$	1.153153	$	0.884994	$	1.428555	$	1.378468
M&E - 1.50% - Freedom	$	1.153153	$	0.884994	$	—	$	0.787645
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	1.428555	$	—
M&E - 1.55% - Landmark	$	1.146547	$	0.879919	$	—	$	0.782899
M&E - 1.55% - Landmark ML	$	1.146547	$	0.879919	$	—	$	0.782899
M&E - 1.65% - Freedom	$	1.133452	$	0.869862	$	1.419893	$	0.773516
M&E - 1.70% - Freedom	$	1.048987	$	1.034153	$	1.417003	$	1.350803
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	1.417003	$	—
M&E - 1.80% - Landmark	$	1.241644	$	1.151979	$	1.411267	$	1.953385
M&E - 1.80% - Suntrust Landmark	$	1.241644	$	1.151979	$	—	$	1.953385
M&E - 1.80% - Landmark Select	$	1.241644	$	1.151979	$	1.411267	$	1.953385
M&E - 1.80% - Huntington Landmark	$	0.929923	$	0.997386	$	1.411267	$	1.158294
M&E - 1.80% - Landmark ML	$	1.241644	$	1.151979	$	1.411267	$	1.953385

See accompanying notes.

122

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount		Janus Aspen - Enterprise Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	1.486095	$	1.390209	$	1.408399	$	2.316756
M&E - 1.90% - Freedom	$	1.035305	$	1.020685	$	1.405556	$	1.333176
M&E - 1.90% - MEMBERS Freedom	$	—	$	—	$	1.405556	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	1.402702	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	1.402702	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	1.402702	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	1.402702	$	—
M&E - 2.00% - Landmark	$	1.465123	$	1.370558	$	1.399856	$	2.284024
M&E - 2.00% - Suntrust Landmark	$	1.465123	$	1.370558	$	—	$	2.284024
M&E - 2.00% - Landmark Select	$	1.465123	$	1.370558	$	1.399856	$	2.284024
M&E - 2.00% - Huntington Landmark	$	0.920244	$	0.987050	$	1.399856	$	1.146264
M&E - 2.00% - Landmark ML	$	1.465123	$	1.370558	$	1.399856	$	2.284024
M&E - 2.05% - Landmark	$	1.209535	$	1.122223	$	—	$	1.902897
M&E - 2.05% - Landmark ML	$	1.209535	$	1.122223	$	—	$	1.902897
M&E - 2.15% - Freedom	$	1.444404	$	1.351205	$	1.391388	$	2.251748
M&E - 2.20% - Freedom	$	1.015163	$	1.000835	$	1.388573	$	1.307262
M&E - 2.30% - Landmark	$	1.424018	$	1.332167	$	1.382939	$	2.220014
M&E - 2.30% - Suntrust Landmark	$	1.424018	$	1.332167	$	—	$	2.220014
M&E - 2.30% - Landmark Select	$	1.424018	$	1.332167	$	1.382939	$	2.220014
M&E - 2.30% - Huntington Landmark	$	0.906020	$	0.971730	$	1.382939	$	1.128494
M&E - 2.30% - Landmark ML	$	1.424018	$	1.332167	$	1.382939	$	2.220014
M&E - 2.35% - Freedom	$	—	$	—	$	1.380167	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	1.374618	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	1.374618	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	1.374618	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	1.374618	$	—

See accompanying notes.

123

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount		Janus Aspen - Enterprise 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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount		Janus Aspen - Enterprise Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount		Janus Aspen - Enterprise 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	AllianceBernstein Growth & Income Subaccount		AllianceBernstein Large Cap Growth Subaccount		AllianceBernstein Balanced Wealth Strategy Subaccount		Janus Aspen - Enterprise Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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, 2012

	Janus Aspen - Perkins Mid Cap Value Subaccount		Janus Aspen - Worldwide Subaccount		MFS® New Discovery Subaccount		MFS® Total Return Subaccount
Assets
Investment in securities:
Number of shares - Initial		181,553.532		970,097.384		2,895,135.728		2,933,625.237
Cost	$	2,700,809	$	26,246,736	$	45,287,165	$	53,165,469
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	2,826,788	$	29,413,353	$	43,455,987	$	58,085,780
Receivable for units sold		—		8		—		50
Total assets		2,826,788		29,413,361		43,455,987		58,085,830
Liabilities
Payable for units redeemed		2		—		26		—
Total net assets	$	2,826,786	$	29,413,361	$	43,455,961	$	58,085,830
Net Assets:
Deferred annuity contracts terminable by owners	$	2,826,786	$	29,413,361	$	43,455,961	$	58,085,830
Total net assets	$	2,826,786	$	29,413,361	$	43,455,961	$	58,085,830

See accompanying notes.

128

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Janus Aspen - Perkins Mid Cap Value Subaccount		Janus Aspen - Worldwide Subaccount		MFS® New Discovery Subaccount		MFS® Total Return Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		269,338		1,573,432		282,646		1,106,482
M&E - 1.25% - Landmark ML		—		334,021		42,074		135,979
M&E - 1.25% - Freedom		8,810		177,227		67,562		172,886
M&E - 1.30% - Landmark		—		6,005,917		9,283,862		10,147,917
M&E - 1.30% - Suntrust Landmark		—		9,150		—		46,069
M&E - 1.30% - Landmark Select		—		19,635		13,366		65,537
M&E - 1.30% - Huntington Landmark		—		55,713		38,624		202,242
M&E - 1.30% - Landmark ML		—		245,833		193,919		414,454
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
M&E - 1.40% - Landmark		396,301		985,151		372,809		939,167
M&E - 1.40% - Landmark ML		85,062		417,263		213,713		274,927
M&E - 1.40% - Freedom		67,291		1,251,718		147,641		1,393,333
M&E - 1.50% - Landmark		414,383		6,943,163		5,481,875		4,919,226
M&E - 1.50% - Suntrust Landmark		—		—		1,446		18,791
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		—		27,281		44,705		118,423
M&E - 1.50% - Landmark ML		214,551		960,053		314,363		532,273
M&E - 1.50% - Freedom		—		23,290		—		179,360
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		89,398		13,498,040		8,032,793		17,000,013
M&E - 1.55% - Landmark ML		238,913		2,061,463		1,240,556		1,517,775
M&E - 1.65% - Freedom		—		399,295		100,846		1,570,413
M&E - 1.70% - Freedom		—		517,731		831,485		1,127,996
M&E - 1.70% - MEMBERS Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		122,337		138,125		328,980
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		—		829		26,894
M&E - 1.80% - Landmark ML		—		—		—		—

See accompanying notes.

129

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Janus Aspen - Perkins Mid Cap Value Subaccount		Janus Aspen - Worldwide Subaccount		MFS® New Discovery Subaccount		MFS®  Total Return Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		292		1,304		96,099
M&E - 1.90% - Freedom		—		30,668		61,114		131,806
M&E - 1.90% - MEMBERS 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		—		35,966		50,834		51,112
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		—		157,234		110,354		67,832
M&E - 2.20% - Freedom		—		28,035		12,361		117,117
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.

130

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Janus Aspen - Perkins Mid Cap Value Subaccount		Janus Aspen - Worldwide Subaccount		MFS® New Discovery Subaccount		MFS®  Total Return Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.624295	$	0.862311	$	1.645861	$	1.405624
M&E - 1.25% - Landmark ML	$	1.624295	$	0.862311	$	1.645861	$	1.405624
M&E - 1.25% - Freedom	$	1.103689	$	0.848319	$	1.286900	$	1.042673
M&E - 1.30% - Landmark	$	—	$	1.091246	$	1.637182	$	1.398243
M&E - 1.30% - Suntrust Landmark	$	—	$	1.091246	$	1.637182	$	1.398243
M&E - 1.30% - Landmark Select	$	—	$	1.091246	$	1.637182	$	1.398243
M&E - 1.30% - Huntington Landmark	$	—	$	0.851072	$	1.325715	$	1.068323
M&E - 1.30% - Landmark ML	$	—	$	1.091246	$	1.637182	$	1.398243
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	1.590394	$	0.686613	$	1.620011	$	1.383572
M&E - 1.40% - Landmark ML	$	1.590394	$	0.618340	$	1.620011	$	1.383572
M&E - 1.40% - Freedom	$	1.614647	$	1.130727	$	1.638533	$	1.305831
M&E - 1.50% - Landmark	$	1.578171	$	0.837856	$	1.603039	$	1.369109
M&E - 1.50% - Suntrust Landmark	$	—	$	0.837856	$	1.603039	$	1.369109
M&E - 1.50% - Landmark Select	$	—	$	0.837856	$	1.603039	$	1.369109
M&E - 1.50% - Huntington Landmark	$	—	$	0.842169	$	1.311867	$	1.057194
M&E - 1.50% - Landmark ML	$	1.578171	$	0.837856	$	1.603039	$	1.369109
M&E - 1.50% - Freedom	$	1.571341	$	0.678370	$	1.603039	$	1.369109
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	1.561949	$	0.674291	$	1.594598	$	1.361906
M&E - 1.55% - Landmark ML	$	1.561949	$	0.674291	$	1.594598	$	1.361906
M&E - 1.65% - Freedom	$	1.543179	$	0.666178	$	1.577982	$	1.347697
M&E - 1.70% - Freedom	$	—	$	0.988220	$	1.348707	$	1.135216
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	1.035342	$	1.553292	$	1.326630
M&E - 1.80% - Suntrust Landmark	$	—	$	1.035342	$	1.553292	$	1.326630
M&E - 1.80% - Landmark Select	$	—	$	1.035342	$	1.553292	$	1.326630
M&E - 1.80% - Huntington Landmark	$	—	$	0.829069	$	1.291440	$	1.040731
M&E - 1.80% - Landmark ML	$	—	$	1.035342	$	1.553292	$	1.326630

See accompanying notes.

131

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Janus Aspen - Perkins Mid Cap Value Subaccount		Janus Aspen - Worldwide Subaccount		MFS®  New Discovery Subaccount		MFS®  Total Return Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	1.348095	$	2.010799	$	1.419898
M&E - 1.90% - Freedom	$	—	$	0.975324	$	1.331144	$	1.120421
M&E - 1.90% - MEMBERS 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	$	—	$	1.329046	$	1.982307	$	1.399786
M&E - 2.00% - Suntrust Landmark	$	—	$	1.329046	$	1.982307	$	1.399786
M&E - 2.00% - Landmark Select	$	—	$	1.329046	$	1.982307	$	1.399786
M&E - 2.00% - Huntington Landmark	$	—	$	0.820458	$	1.278043	$	1.029931
M&E - 2.00% - Landmark ML	$	—	$	1.329046	$	1.982307	$	1.399786
M&E - 2.05% - Landmark	$	—	$	1.008569	$	1.513125	$	1.292335
M&E - 2.05% - Landmark ML	$	—	$	1.008569	$	1.513125	$	1.292335
M&E - 2.15% - Freedom	$	—	$	1.310256	$	1.954296	$	1.380050
M&E - 2.20% - Freedom	$	—	$	0.956365	$	1.305247	$	1.098685
M&E - 2.30% - Landmark	$	—	$	1.291791	$	1.926801	$	1.360551
M&E - 2.30% - Suntrust Landmark	$	—	$	1.291791	$	1.926801	$	1.360551
M&E - 2.30% - Landmark Select	$	—	$	1.291791	$	1.926801	$	1.360551
M&E - 2.30% - Huntington Landmark	$	—	$	0.807750	$	1.258230	$	1.013971
M&E - 2.30% - Landmark ML	$	—	$	1.291791	$	1.926801	$	1.360551
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.

132

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Janus Aspen - Perkins Mid Cap Value Subaccount		Janus Aspen  - Worldwide Subaccount		MFS®  New Discovery Subaccount		MFS®  Total Return 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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	Janus Aspen - Perkins Mid Cap Value Subaccount		Janus Aspen - Worldwide Subaccount		MFS®  New Discovery Subaccount		MFS®  Total Return Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	Janus Aspen - Perkins Mid Cap Value Subaccount		Janus Aspen - Worldwide Subaccount		MFS®  New Discovery Subaccount		MFS®  Total Return 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	Janus Aspen - Perkins Mid Cap Value Subaccount		Janus Aspen - Worldwide Subaccount		MFS®  New Discovery Subaccount		MFS®  Total Return Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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, 2012

	Fidelity VIP Contrafund®		Fidelity VIP Equity-Income		Fidelity VIP Growth		Fidelity VIP Growth Opportunities
	Subaccount		Subaccount		Subaccount		Subaccount
Assets
Investment in securities:
Number of shares - Initial		7,645,075.937		2,300,815.564		721,403.893		78,867.681
Cost	$	194,846,176	$	46,553,997	$	24,415,129	$	1,125,941
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	198,771,974	$	45,142,001	$	30,039,258	$	1,703,542
Receivable for units sold		—		—		—		—
Total assets		198,771,974		45,142,001		30,039,258		1,703,542
Liabilities
Payable for units redeemed		1		36		24		10
Total net assets	$	198,771,973	$	45,141,965	$	30,039,234	$	1,703,532
Net Assets:
Deferred annuity contracts terminable by owners	$	198,771,973	$	45,141,965	$	30,039,234	$	1,703,532
Total net assets	$	198,771,973	$	45,141,965	$	30,039,234	$	1,703,532

See accompanying notes.

137

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Fidelity VIP Contrafund®		Fidelity VIP Equity-Income		Fidelity VIP Growth		Fidelity VIP Growth Opportunities
	Subaccount		Subaccount		Subaccount		Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		3,940,964		1,394,513		1,507,301		178,377
M&E - 1.25% - Landmark ML		416,578		94,218		254,418		71,820
M&E - 1.25% - Freedom		1,220,625		390,176		131,753		7,051
M&E - 1.30% - Landmark		28,884,697		6,170,972		5,668,693		—
M&E - 1.30% - Suntrust Landmark		95,620		54,183		6,960		—
M&E - 1.30% - Landmark Select		253,333		153,835		39,712		—
M&E - 1.30% - Huntington Landmark		1,320,868		215,836		120,176		—
M&E - 1.30% - Landmark ML		1,891,018		368,249		353,915		—
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
M&E - 1.40% - Landmark		4,283,149		1,252,096		715,853		13,648
M&E - 1.40% - Landmark ML		1,757,633		305,423		366,827		89,094
M&E - 1.40% - Freedom		5,959,492		904,340		502,407		43,062
M&E - 1.50% - Landmark		19,024,225		7,119,197		5,876,205		846,571
M&E - 1.50% - Suntrust Landmark		34,568		94,581		224,770		—
M&E - 1.50% - Landmark Select		5,273		3,544		29,022		—
M&E - 1.50% - Huntington Landmark		457,453		138,483		52,308		—
M&E - 1.50% - Landmark ML		2,381,989		1,559,097		836,343		132,585
M&E - 1.50% - Freedom		150,291		55,576		58,438		—
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		45,576,363		11,324,958		10,428,301		27,136
M&E - 1.55% - Landmark ML		5,311,678		2,347,818		1,468,758		112,696
M&E - 1.65% - Freedom		1,262,159		111,980		84,069		—
M&E - 1.70% - Freedom		2,943,124		384,380		337,148		—
M&E - 1.70% - MEMBERS Freedom		—		—		—		—
M&E - 1.80% - Landmark		653,783		311,101		96,703		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		3,138		—
M&E - 1.80% - Huntington Landmark		32,572		407		—		—
M&E - 1.80% - Landmark ML		44,209		—		—		—

See accompanying notes.

138

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity-Income Subaccount		Fidelity VIP Growth Subaccount		Fidelity VIP Growth Opportunities Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		111,422		65,533		1,797		—
M&E - 1.90% - Freedom		430,252		198,709		81,967		—
M&E - 1.90% - MEMBERS 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		96,861		40,042		69,646		—
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		596,671		65,468		91,152		—
M&E - 2.20% - Freedom		351,645		32,160		59,401		—
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.

139

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity-Income Subaccount		Fidelity VIP Growth Subaccount		Fidelity VIP Growth Opportunities Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	1.722877	$	1.263782	$	0.981851	$	1.182989
M&E - 1.25% - Landmark ML	$	1.722877	$	1.263782	$	0.981851	$	1.182989
M&E - 1.25% - Freedom	$	1.065865	$	0.894141	$	1.066148	$	1.034030
M&E - 1.30% - Landmark	$	1.751320	$	1.342765	$	1.216905	$	—
M&E - 1.30% - Suntrust Landmark	$	1.751320	$	1.342765	$	1.216905	$	—
M&E - 1.30% - Landmark Select	$	1.751320	$	1.342765	$	1.216905	$	—
M&E - 1.30% - Huntington Landmark	$	1.028077	$	0.922373	$	0.975578	$	—
M&E - 1.30% - Landmark ML	$	1.751320	$	1.342765	$	1.216905	$	—
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	1.424962	$	1.343597	$	0.965031	$	0.909910
M&E - 1.40% - Landmark ML	$	1.424962	$	1.343597	$	0.965031	$	0.909910
M&E - 1.40% - Freedom	$	1.541509	$	1.254072	$	1.254566	$	1.311477
M&E - 1.50% - Landmark	$	1.673956	$	1.227884	$	0.954001	$	1.149391
M&E - 1.50% - Suntrust Landmark	$	1.673956	$	1.227884	$	0.954001	$	—
M&E - 1.50% - Landmark Select	$	1.673956	$	1.227884	$	0.954001	$	—
M&E - 1.50% - Huntington Landmark	$	1.017349	$	0.912765	$	0.965415	$	—
M&E - 1.50% - Landmark ML	$	1.673956	$	1.227884	$	0.954001	$	1.149391
M&E - 1.50% - Freedom	$	1.407273	$	1.326902	$	0.954001	$	0.898556
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	1.398505	$	1.318619	$	0.948503	$	0.892974
M&E - 1.55% - Landmark ML	$	1.398505	$	1.318619	$	0.948503	$	0.892974
M&E - 1.65% - Freedom	$	1.381167	$	1.302270	$	0.937646	$	0.881980
M&E - 1.70% - Freedom	$	1.115943	$	1.013963	$	1.104710	$	—
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.661602	$	1.273999	$	1.154603	$	—
M&E - 1.80% - Suntrust Landmark	$	1.661602	$	1.273999	$	1.154603	$	—
M&E - 1.80% - Landmark Select	$	1.661602	$	1.273999	$	1.154603	$	—
M&E - 1.80% - Huntington Landmark	$	1.001507	$	0.898539	$	0.950403	$	—
M&E - 1.80% - Landmark ML	$	1.661602	$	1.273999	$	1.154603	$	—

See accompanying notes.

140

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity-Income Subaccount		Fidelity VIP Growth Subaccount		Fidelity VIP Growth Opportunities Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	1.886392	$	1.526280	$	1.477149	$	—
M&E - 1.90% - Freedom	$	1.101364	$	1.000726	$	1.090321	$	—
M&E - 1.90% - MEMBERS 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	$	1.859698	$	1.504685	$	1.456242	$	—
M&E - 2.00% - Suntrust Landmark	$	1.859698	$	1.504685	$	1.456242	$	—
M&E - 2.00% - Landmark Select	$	1.859698	$	1.504685	$	1.456242	$	—
M&E - 2.00% - Huntington Landmark	$	0.991099	$	0.889212	$	0.940520	$	—
M&E - 2.00% - Landmark ML	$	1.859698	$	1.504685	$	1.456242	$	—
M&E - 2.05% - Landmark	$	1.618641	$	1.241082	$	1.124757	$	—
M&E - 2.05% - Landmark ML	$	1.618641	$	1.241082	$	1.124757	$	—
M&E - 2.15% - Freedom	$	1.833426	$	1.483459	$	1.435693	$	—
M&E - 2.20% - Freedom	$	1.079970	$	0.981252	$	1.069132	$	—
M&E - 2.30% - Landmark	$	1.807584	$	1.462504	$	1.415464	$	—
M&E - 2.30% - Suntrust Landmark	$	1.807584	$	1.462504	$	1.415464	$	—
M&E - 2.30% - Landmark Select	$	1.807584	$	1.462504	$	1.415464	$	—
M&E - 2.30% - Huntington Landmark	$	0.975767	$	0.875445	$	0.925948	$	—
M&E - 2.30% - Landmark ML	$	1.807584	$	1.462504	$	1.415464	$	—
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.

141

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity-Income Subaccount		Fidelity VIP Growth Subaccount		Fidelity VIP Growth Opportunities 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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity-Income Subaccount		Fidelity VIP Growth Subaccount		Fidelity VIP Growth Opportunities Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity-Income Subaccount		Fidelity VIP Growth Subaccount		Fidelity VIP Growth Opportunities 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	Fidelity VIP Contrafund® Subaccount		Fidelity VIP Equity-Income Subaccount		Fidelity VIP Growth Subaccount		Fidelity VIP Growth Opportunities Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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, 2012

	Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount		Franklin Income Securities Subaccount
Assets
Investment in securities:
Number of shares - Initial		6,162,178.695		5,716,960.980		3,999,383.983		5,933,802.427
Cost	$	181,465,507	$	50,420,380	$	59,025,083	$	86,254,697
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	184,742,117	$	63,915,624	$	62,110,433	$	89,422,403
Receivable for units sold		—		39		—		40
Total assets		184,742,117		63,915,663		62,110,433		89,422,443
Liabilities
Payable for units redeemed		91		—		39		—
Total net assets	$	184,742,026	$	63,915,663	$	62,110,394	$	89,422,443
Net Assets:
Deferred annuity contracts terminable by owners	$	184,742,026	$	63,915,663	$	62,110,394	$	89,422,443
Total net assets	$	184,742,026	$	63,915,663	$	62,110,394	$	89,422,443

See accompanying notes.

146

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount		Franklin Income Securities Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		2,889,672		1,288,931		—		1,239,437
M&E - 1.25% - Landmark ML		350,692		56,022		—		45,666
M&E - 1.25% - Freedom		480,252		69,070		—		293,506
M&E - 1.30% - Landmark		16,556,425		10,963,437		32,436,985		28,503,714
M&E - 1.30% - Suntrust Landmark		116,474		46,396		—		2,626
M&E - 1.30% - Landmark Select		57,944		8,456		94,363		126,741
M&E - 1.30% - Huntington Landmark		938,947		204,253		885,456		685,369
M&E - 1.30% - Landmark ML		385,907		342,111		2,567,618		1,106,855
M&E - 1.30% - MEMBERS Landmark		—		—		3,144,379		1,154,916
M&E - 1.40% - Landmark		2,169,690		795,451		—		1,379,110
M&E - 1.40% - Landmark ML		1,478,480		258,225		—		435,282
M&E - 1.40% - Freedom		4,027,425		1,205,410		—		2,271,838
M&E - 1.50% - Landmark		14,926,629		5,104,389		8,225,580		12,501,444
M&E - 1.50% - Suntrust Landmark		41,804		8,521		—		—
M&E - 1.50% - Landmark Select		—		—		—		65,658
M&E - 1.50% - Huntington Landmark		130,104		39,959		494,480		370,904
M&E - 1.50% - Landmark ML		2,210,020		480,863		507,781		954,739
M&E - 1.50% - Freedom		74,140		116,024		—		339,719
M&E - 1.50% - MEMBERS Landmark		—		—		451,893		558,624
M&E - 1.55% - Landmark		28,615,015		15,151,077		—		18,112,672
M&E - 1.55% - Landmark ML		3,694,808		1,474,845		—		1,521,672
M&E - 1.65% - Freedom		760,184		842,833		—		345,465
M&E - 1.70% - Freedom		1,456,369		497,559		2,304,976		3,754,136
M&E - 1.70% - MEMBERS Freedom		—		—		310,339		837,431
M&E - 1.80% - Landmark		454,687		104,522		646,020		1,920,062
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		72,897		—		78,634		30,106
M&E - 1.80% - Landmark ML		—		23,674		207,553		19,641

See accompanying notes.

147

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value  Strategies Subaccount		Fidelity  VIP Balanced Subaccount		Franklin Income Securities Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		56,649		104,859		23,409		198,732
M&E - 1.90% - Freedom		138,644		231,688		286,901		172,147
M&E - 1.90% - MEMBERS Freedom		—		—		—		277,328
M&E - 1.95% - Landmark		—		—		1,050,894		—
M&E - 1.95% - Landmark Select		—		—		49,834		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		349,110		—
M&E - 2.00% - Landmark		26,429		29,712		267,630		532,453
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		57,803		1,461
M&E - 2.00% - Landmark ML		—		—		82,808		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		433,952		280,621		43,618		105,035
M&E - 2.20% - Freedom		300,740		33,641		—		22,123
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		—		—		202,445		—
M&E - 2.45% - Landmark		—		—		22,964		—
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, 2012

	Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount		Franklin Income Securities Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	2.360244	$	1.660490	$	—	$	1.131434
M&E - 1.25% - Landmark ML	$	2.360244	$	1.660490	$	1.141029	$	1.131434
M&E - 1.25% - Freedom	$	1.108212	$	0.976472	$	—	$	1.131434
M&E - 1.30% - Landmark	$	2.203677	$	1.651800	$	1.138401	$	1.128272
M&E - 1.30% - Suntrust Landmark	$	2.203677	$	1.651800	$	1.138401	$	1.128272
M&E - 1.30% - Landmark Select	$	2.203677	$	1.651800	$	1.138401	$	1.128272
M&E - 1.30% - Huntington Landmark	$	1.076963	$	1.034214	$	1.138401	$	1.164070
M&E - 1.30% - Landmark ML	$	2.203677	$	1.651800	$	1.138401	$	1.128272
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	1.138401	$	1.128272
M&E - 1.40% - Landmark	$	2.392732	$	1.634493	$	—	$	1.121956
M&E - 1.40% - Landmark ML	$	2.392732	$	1.634493	$	1.133170	$	1.121956
M&E - 1.40% - Freedom	$	1.822126	$	1.394439	$	—	$	1.121956
M&E - 1.50% - Landmark	$	2.293268	$	1.617356	$	1.127958	$	1.115734
M&E - 1.50% - Suntrust Landmark	$	2.293268	$	1.617356	$	1.127958	$	1.115734
M&E - 1.50% - Landmark Select	$	2.293268	$	1.617356	$	1.127958	$	1.115734
M&E - 1.50% - Huntington Landmark	$	1.065724	$	1.023424	$	1.127958	$	1.151928
M&E - 1.50% - Landmark ML	$	2.293268	$	1.617356	$	1.127958	$	1.115734
M&E - 1.50% - Freedom	$	2.362972	$	1.617356	$	—	$	1.115734
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	1.127958	$	1.115734
M&E - 1.55% - Landmark	$	2.348232	$	1.608870	$	—	$	1.112603
M&E - 1.55% - Landmark ML	$	2.348232	$	1.608870	$	1.125360	$	1.112603
M&E - 1.65% - Freedom	$	2.319143	$	1.592074	$	1.120209	$	1.106404
M&E - 1.70% - Freedom	$	1.134282	$	1.129479	$	1.117617	$	1.103334
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	1.117617	$	1.103334
M&E - 1.80% - Landmark	$	2.090762	$	1.567161	$	1.112499	$	1.097186
M&E - 1.80% - Suntrust Landmark	$	2.090762	$	1.567161	$	1.112499	$	1.097186
M&E - 1.80% - Landmark Select	$	2.090762	$	1.567161	$	1.112499	$	1.097186
M&E - 1.80% - Huntington Landmark	$	1.049137	$	1.007517	$	1.112499	$	1.133996
M&E - 1.80% - Landmark ML	$	2.090762	$	1.567161	$	1.112499	$	1.097186

See accompanying notes.

149

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount		Franklin Income Securities Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	2.490093	$	1.993337	$	1.109951	$	1.094111
M&E - 1.90% - Freedom	$	1.119481	$	1.114771	$	1.107412	$	1.091097
M&E - 1.90% - MEMBERS Freedom	$	—	$	—	$	1.107412	$	1.091097
M&E - 1.95% - Landmark	$	—	$	—	$	1.104879	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	1.104879	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	1.104879	$	—
M&E - 1.95% - Landmark ML	$	—	$	—	$	1.104879	$	—
M&E - 2.00% - Landmark	$	2.454908	$	1.965138	$	1.102363	$	1.085023
M&E - 2.00% - Suntrust Landmark	$	2.454908	$	1.965138	$	1.102363	$	1.085023
M&E - 2.00% - Landmark Select	$	2.454908	$	1.965138	$	1.102363	$	1.085023
M&E - 2.00% - Huntington Landmark	$	1.038231	$	0.997044	$	1.102363	$	1.122238
M&E - 2.00% - Landmark ML	$	2.454908	$	1.965138	$	1.102363	$	1.085023
M&E - 2.05% - Landmark	$	2.036752	$	1.526626	$	—	$	1.082009
M&E - 2.05% - Landmark ML	$	2.036752	$	1.526626	$	1.099827	$	1.082009
M&E - 2.15% - Freedom	$	2.420258	$	1.937400	$	1.094795	$	1.076059
M&E - 2.20% - Freedom	$	1.097720	$	1.093101	$	1.092299	$	1.073057
M&E - 2.30% - Landmark	$	2.386072	$	1.910105	$	1.087314	$	1.067114
M&E - 2.30% - Suntrust Landmark	$	2.386072	$	1.910105	$	1.087314	$	1.067114
M&E - 2.30% - Landmark Select	$	2.386072	$	1.910105	$	1.087314	$	1.067114
M&E - 2.30% - Huntington Landmark	$	1.022164	$	0.981619	$	1.087314	$	1.104865
M&E - 2.30% - Landmark ML	$	2.386072	$	1.910105	$	1.087314	$	1.067114
M&E - 2.35% - Freedom	$	—	$	—	$	1.084833	$	—
M&E - 2.45% - Landmark	$	—	$	—	$	1.079898	$	—
M&E - 2.45% - Landmark Select	$	—	$	—	$	1.079898	$	—
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	1.079898	$	—
M&E - 2.45% - Landmark ML	$	—	$	—	$	1.079898	$	—

See accompanying notes.

150

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount		Franklin Income Securities 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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value  Strategies Subaccount		Fidelity  VIP Balanced Subaccount		Franklin Income Securities Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount		Franklin Income Securities 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	Fidelity VIP Mid Cap Subaccount		Fidelity VIP Value Strategies Subaccount		Fidelity VIP Balanced Subaccount		Franklin Income Securities Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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, 2012

	Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton VIP Founding Funds Allocation Subaccount		American Funds - Asset Allocation Subaccount
Assets
Investment in securities:
Number of shares - Initial		1,030,640.679		2,933,883.116		8,819,888.377		5,443,058.016
Cost	$	16,002,594	$	39,315,059	$	66,038,914	$	89,054,632
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	17,747,632	$	42,159,900	$	74,880,852	$	99,662,392
Receivable for units sold		—		18		—		—
Total assets		17,747,632		42,159,918		74,880,852		99,662,392
Liabilities
Payable for units redeemed		5		—		15		26
Total net assets	$	17,747,627	$	42,159,918	$	74,880,837	$	99,662,366
Net Assets:
Deferred annuity contracts terminable by owners	$	17,747,627	$	42,159,918	$	74,880,837	$	99,662,366
Total net assets	$	17,747,627	$	42,159,918	$	74,880,837	$	99,662,366

See accompanying notes.

155

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton  VIP Founding Funds Allocation Subaccount		American Funds - Asset Allocation Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		529,968		1,061,115		—		—
M&E - 1.25% - Landmark ML		—		155,347		—		—
M&E - 1.25% - Freedom		334,814		21,545		—		—
M&E - 1.30% - Landmark		5,689,439		12,954,547		27,303,994		43,410,989
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		64,022		14,421
M&E - 1.30% - Huntington Landmark		135,135		121,914		2,171,779		4,249,038
M&E - 1.30% - Landmark ML		209,630		359,179		1,901,457		5,739,566
M&E - 1.30% - MEMBERS Landmark		—		—		—		1,562,001
M&E - 1.40% - Landmark		498,859		1,198,168		—		—
M&E - 1.40% - Landmark ML		83,053		506,366		—		—
M&E - 1.40% - Freedom		363,242		853,433		—		—
M&E - 1.50% - Landmark		4,313,422		8,434,799		10,608,245		12,024,492
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		19,916
M&E - 1.50% - Huntington Landmark		108,463		327,889		551,934		1,435,920
M&E - 1.50% - Landmark ML		99,856		813,435		457,741		797,735
M&E - 1.50% - Freedom		40,108		13,359		—		—
M&E - 1.50% - MEMBERS Landmark		—		—		—		85,433
M&E - 1.55% - Landmark		5,819,814		14,209,372		—		—
M&E - 1.55% - Landmark ML		162,446		1,044,082		—		—
M&E - 1.65% - Freedom		128,881		144,366		—		—
M&E - 1.70% - Freedom		959,380		1,686,786		1,993,472		3,290,197
M&E - 1.70% - MEMBERS Freedom		—		—		—		386,563
M&E - 1.80% - Landmark		250,836		259,443		1,615,270		2,267,561
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		8,797		21,304		11,162		48,830
M&E - 1.80% - Landmark ML		14,616		10,618		99,358		374,998

See accompanying notes.

156

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton VIP Founding Funds Allocation Subaccount		American Funds - Asset Allocation Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		167,026		—		—
M&E - 1.90% - Freedom		35,812		175,124		499,243		516,094
M&E - 1.90% - MEMBERS Freedom		—		—		—		—
M&E - 1.95% - Landmark		—		—		1,631,267		615,852
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		46,739		1,218,633
M&E - 2.00% - Landmark		49,378		81,312		332,354		363,635
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		10,257		2,776
M&E - 2.00% - Landmark ML		10,021		3,112		65,333		27,001
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		141,277		2,909		—
M&E - 2.20% - Freedom		—		570,620		—		—
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		—		—		101,167		58,641
M&E - 2.45% - Landmark		—		—		84,912		—
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, 2012

	Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton VIP Founding Funds Allocation Subaccount		American Funds - Asset Allocation Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	0.904048	$	0.941134	$	—	$	—
M&E - 1.25% - Landmark ML	$	0.904048	$	0.941134	$	—	$	—
M&E - 1.25% - Freedom	$	0.904048	$	0.941134	$	—	$	—
M&E - 1.30% - Landmark	$	0.901525	$	0.938505	$	1.518385	$	1.273134
M&E - 1.30% - Suntrust Landmark	$	0.901525	$	0.938505	$	—	$	—
M&E - 1.30% - Landmark Select	$	0.901525	$	0.938505	$	1.518385	$	1.273134
M&E - 1.30% - Huntington Landmark	$	0.944479	$	0.962188	$	1.518385	$	1.273134
M&E - 1.30% - Landmark ML	$	0.901525	$	0.938505	$	1.518385	$	1.273134
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	1.273134
M&E - 1.40% - Landmark	$	0.896470	$	0.933266	$	—	$	—
M&E - 1.40% - Landmark ML	$	0.896470	$	0.933266	$	—	$	—
M&E - 1.40% - Freedom	$	0.896470	$	0.934494	$	—	$	—
M&E - 1.50% - Landmark	$	0.891475	$	0.928048	$	1.506093	$	1.265353
M&E - 1.50% - Suntrust Landmark	$	0.891475	$	0.928048	$	—	$	—
M&E - 1.50% - Landmark Select	$	0.891475	$	0.928048	$	1.506093	$	1.265353
M&E - 1.50% - Huntington Landmark	$	0.934632	$	0.952145	$	1.506093	$	1.265353
M&E - 1.50% - Landmark ML	$	0.891475	$	0.928048	$	1.506093	$	1.265353
M&E - 1.50% - Freedom	$	0.891475	$	0.928048	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	1.265353
M&E - 1.55% - Landmark	$	0.888968	$	0.925467	$	—	$	—
M&E - 1.55% - Landmark ML	$	0.888968	$	0.925467	$	—	$	—
M&E - 1.65% - Freedom	$	0.884025	$	0.920281	$	1.496889	$	—
M&E - 1.70% - Freedom	$	0.881589	$	0.917740	$	1.493843	$	1.257639
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	1.257639
M&E - 1.80% - Landmark	$	0.876671	$	0.912612	$	1.487796	$	1.253785
M&E - 1.80% - Suntrust Landmark	$	0.876671	$	0.912612	$	—	$	—
M&E - 1.80% - Landmark Select	$	0.876671	$	0.912612	$	1.487796	$	1.253785
M&E - 1.80% - Huntington Landmark	$	0.920063	$	0.937332	$	1.487796	$	1.253785
M&E - 1.80% - Landmark ML	$	0.876671	$	0.912612	$	1.487796	$	1.253785

See accompanying notes.

158

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton VIP Founding Funds Allocation Subaccount		American Funds - Asset Allocation Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	0.874209	$	0.910061	$	1.484760	$	—
M&E - 1.90% - Freedom	$	0.871800	$	0.907552	$	1.481755	$	1.249960
M&E - 1.90% - MEMBERS Freedom	$	—	$	—	$	—	$	1.249960
M&E - 1.95% - Landmark	$	—	$	—	$	1.478775	$	1.248049
M&E - 1.95% - Landmark Select	$	—	$	—	$	1.478775	$	1.248049
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	1.478775	$	1.248049
M&E - 1.95% - Landmark ML	$	—	$	—	$	1.478775	$	1.248049
M&E - 2.00% - Landmark	$	0.866941	$	0.902519	$	1.475758	$	1.246157
M&E - 2.00% - Suntrust Landmark	$	0.866941	$	0.902519	$	—	$	—
M&E - 2.00% - Landmark Select	$	0.866941	$	0.902519	$	1.475758	$	1.246157
M&E - 2.00% - Huntington Landmark	$	0.910543	$	0.927626	$	1.475758	$	1.246157
M&E - 2.00% - Landmark ML	$	0.866941	$	0.902519	$	1.475758	$	1.246157
M&E - 2.05% - Landmark	$	0.864540	$	0.900007	$	—	$	—
M&E - 2.05% - Landmark ML	$	0.864540	$	0.900007	$	—	$	—
M&E - 2.15% - Freedom	$	0.859757	$	0.895014	$	1.466827	$	—
M&E - 2.20% - Freedom	$	0.857355	$	0.892556	$	1.463876	$	1.238572
M&E - 2.30% - Landmark	$	0.852636	$	0.887602	$	1.457955	$	1.234823
M&E - 2.30% - Suntrust Landmark	$	0.852636	$	0.887602	$	—	$	—
M&E - 2.30% - Landmark Select	$	0.852636	$	0.887602	$	1.457955	$	1.234823
M&E - 2.30% - Huntington Landmark	$	0.896444	$	0.913219	$	1.457955	$	1.234823
M&E - 2.30% - Landmark ML	$	0.852636	$	0.887602	$	1.457955	$	1.234823
M&E - 2.35% - Freedom	$	—	$	—	$	1.455001	$	1.232947
M&E - 2.45% - Landmark	$	—	$	—	$	1.449117	$	1.229207
M&E - 2.45% - Landmark Select	$	—	$	—	$	1.449117	$	1.229207
M&E - 2.45% - Huntington Landmark	$	—	$	—	$	1.449117	$	1.229207
M&E - 2.45% - Landmark ML	$	—	$	—	$	1.449117	$	1.229207

See accompanying notes.

159

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton VIP Founding Funds Allocation Subaccount		American Funds - Asset 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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton VIP Founding Funds Allocation Subaccount		American Funds - Asset Allocation Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton VIP Founding Funds Allocation Subaccount		American Funds - Asset 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	Mutual Shares Securities Subaccount		Templeton Foreign Securities Subaccount		Franklin Templeton VIP Founding Funds Allocation Subaccount		American Funds - Asset Allocation Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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, 2012

	American Funds - Bond Subaccount		American Funds - Growth Subaccount		American Funds - Growth-Income Subaccount		American Funds - International Subaccount
Assets
Investment in securities:
Number of shares - Initial		4,717,232.440		559,883.087		548,208.335		1,054,282.427
Cost	$	52,079,842	$	31,081,287	$	19,191,096	$	18,011,236
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	52,691,486	$	33,844,933	$	20,963,487	$	18,576,456
Receivable for units sold		37		—		13		—
Total assets		52,691,523		33,844,933		20,963,500		18,576,456
Liabilities
Payable for units redeemed		—		55		—		18
Total net assets	$	52,691,523	$	33,844,878	$	20,963,500	$	18,576,438
Net Assets:
Deferred annuity contracts terminable by owners	$	52,691,523	$	33,844,878	$	20,963,500	$	18,576,438
Total net assets	$	52,691,523	$	33,844,878	$	20,963,500	$	18,576,438

See accompanying notes.

164

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	American Funds  - Bond Subaccount		American Funds - Growth Subaccount		American Funds - Growth-Income Subaccount		American Funds - International 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		26,361,262		14,631,282		10,364,613		12,009,212
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		74,882		—		—		—
M&E - 1.30% - Huntington Landmark		888,058		287,051		409,495		133,756
M&E - 1.30% - Landmark ML		1,638,609		541,518		174,700		431,102
M&E - 1.30% - MEMBERS Landmark		5,472,190		3,021,997		662,684		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		—		—		—
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		6,369,557		5,502,055		3,240,563		4,196,512
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		517,249		113,510		59,149		53,778
M&E - 1.50% - Landmark ML		491,086		201,985		766,965		248,381
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		353,606		378,436		48,855		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		1,883,221		1,091,605		579,742		833,834
M&E - 1.70% - MEMBERS Freedom		400,854		122,754		189,168		—
M&E - 1.80% - Landmark		958,608		238,627		362,723		301,148
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		4,395		4,392		25,932		2,285
M&E - 1.80% - Landmark ML		72,316		75,423		34,688		32,868

See accompanying notes.

165

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	American Funds  - Bond Subaccount		American Funds - Growth Subaccount		American Funds - Growth-Income Subaccount		American Funds - International Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		251,799		117,696		52,162		43,714
M&E - 1.90% - MEMBERS Freedom		—		14,110		14,893		—
M&E - 1.95% - Landmark		512,561		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		311,630		46,852		18,384		19,754
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		4,025		—		—		—
M&E - 2.00% - Landmark ML		42,255		—		—		—
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		—		—		—		—
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, 2012

	American Funds  - Bond Subaccount		American Funds - Growth Subaccount		American Funds - Growth-Income Subaccount		American Funds - International 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	$	1.128027	$	1.281122	$	1.235904	$	1.017205
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	1.128027	$	1.281122	$	1.235904	$	1.017205
M&E - 1.30% - Huntington Landmark	$	1.128027	$	1.281122	$	1.235904	$	1.017205
M&E - 1.30% - Landmark ML	$	1.128027	$	1.281122	$	1.235904	$	1.017205
M&E - 1.30% - MEMBERS Landmark	$	1.128027	$	1.281122	$	1.235904	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.121116	$	1.273284	$	1.228334	$	1.010962
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	1.121116	$	1.273284	$	1.228334	$	1.010962
M&E - 1.50% - Huntington Landmark	$	1.121116	$	1.273284	$	1.228334	$	1.010962
M&E - 1.50% - Landmark ML	$	1.121116	$	1.273284	$	1.228334	$	1.010962
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	1.121116	$	1.273284	$	1.228334	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	1.114281	$	1.265528	$	1.220832	$	1.004805
M&E - 1.70% - MEMBERS Freedom	$	1.114281	$	1.265528	$	1.220832	$	—
M&E - 1.80% - Landmark	$	1.110897	$	1.261635	$	1.217099	$	1.001726
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	1.110897	$	1.261635	$	1.217099	$	1.001726
M&E - 1.80% - Huntington Landmark	$	1.110897	$	1.261635	$	1.217099	$	1.001726
M&E - 1.80% - Landmark ML	$	1.110897	$	1.261635	$	1.217099	$	1.001726

See accompanying notes.

167

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	American Funds  - Bond Subaccount		American Funds - Growth Subaccount		American Funds - Growth-Income Subaccount		American Funds - International Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	1.107483	$	1.257803	$	1.213392	$	0.998675
M&E - 1.90% - MEMBERS Freedom	$	1.107483	$	1.257803	$	1.213392	$	—
M&E - 1.95% - Landmark	$	1.105809	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	1.105809	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	1.105809	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	1.105809	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.104093	$	1.253982	$	1.209692	$	0.995631
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	1.104093	$	1.253982	$	1.209692	$	0.995631
M&E - 2.00% - Huntington Landmark	$	1.104093	$	1.253982	$	1.209692	$	0.995631
M&E - 2.00% - Landmark ML	$	1.104093	$	1.253982	$	1.209692	$	0.995631
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	1.097420	$	1.246358	$	1.202353	$	0.989584
M&E - 2.30% - Landmark	$	1.094065	$	1.242561	$	1.198698	$	0.986570
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	1.094065	$	1.242561	$	1.198698	$	0.986570
M&E - 2.30% - Huntington Landmark	$	1.094065	$	1.242561	$	1.198698	$	0.986570
M&E - 2.30% - Landmark ML	$	1.094065	$	1.242561	$	1.198698	$	0.986570
M&E - 2.35% - Freedom	$	1.092401	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	1.089096	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	1.089096	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	1.089096	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	1.089096	$	—	$	—	$	—

See accompanying notes.

168

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	American Funds  - Bond Subaccount		American Funds - Growth Subaccount		American Funds - Growth-Income Subaccount		American Funds - International 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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	American Funds  - Bond Subaccount		American Funds - Growth Subaccount		American Funds - Growth-Income Subaccount		American Funds - International Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	American Funds  - Bond Subaccount		American Funds - Growth Subaccount		American Funds - Growth-Income Subaccount		American Funds - International 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	American Funds  - Bond Subaccount		American Funds - Growth Subaccount		American Funds - Growth-Income Subaccount		American Funds - International Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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, 2012

	GE Investments Total Return Subaccount		BlackRock Basic Value V.I. Subaccount		BlackRock High Yield V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount
Assets
Investment in securities:
Number of shares - Initial		1,228,739.174		1,953,773.303		1,252,804.247		1,275,075.267
Cost	$	19,969,238	$	26,397,144	$	8,486,436	$	18,978,609
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	21,257,188	$	25,008,298	$	9,320,864	$	20,528,712
Receivable for units sold		—		—		384		—
Total assets		21,257,188		25,008,298		9,321,248		20,528,712
Liabilities
Payable for units redeemed		28		1		—		3
Total net assets	$	21,257,160	$	25,008,297	$	9,321,248	$	20,528,709
Net Assets:
Deferred annuity contracts terminable by owners	$	21,257,160	$	25,008,297	$	9,321,248	$	20,528,709
Total net assets	$	21,257,160	$	25,008,297	$	9,321,248	$	20,528,709

See accompanying notes.

173

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	GE Investments Total Return Subaccount		BlackRock Basic Value V.I. Subaccount		BlackRock High Yield V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount
Accumulation units outstanding: Initial
M&E - 1.25% - Landmark		—		—		—		—
M&E - 1.25% - Landmark ML		—		1,154,833		323,554		514,764
M&E - 1.25% - Freedom		—		—		—		—
M&E - 1.30% - Landmark		11,073,068		—		—		—
M&E - 1.30% - Suntrust Landmark		—		—		—		—
M&E - 1.30% - Landmark Select		—		—		—		—
M&E - 1.30% - Huntington Landmark		172,688		—		—		—
M&E - 1.30% - Landmark ML		1,773,869		787,479		402,698		2,091,771
M&E - 1.30% - MEMBERS Landmark		166,422		—		—		—
M&E - 1.40% - Landmark		—		—		—		—
M&E - 1.40% - Landmark ML		—		3,001,816		1,283,867		2,298,752
M&E - 1.40% - Freedom		—		—		—		—
M&E - 1.50% - Landmark		2,488,410		—		—		—
M&E - 1.50% - Suntrust Landmark		—		—		—		—
M&E - 1.50% - Landmark Select		—		—		—		—
M&E - 1.50% - Huntington Landmark		20,280		—		—		—
M&E - 1.50% - Landmark ML		741,764		4,750,040		1,162,877		1,880,219
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		131,226		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		4,572,230		1,390,416		5,271,911
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		1,070,281		—		—		—
M&E - 1.70% - MEMBERS Freedom		—		—		—		—
M&E - 1.80% - Landmark		365,179		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		3,207		—		—		—
M&E - 1.80% - Landmark ML		104,777		—		3,939		—

See accompanying notes.

174

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	GE Investments Total Return Subaccount		BlackRock Basic Value V.I. Subaccount		BlackRock High Yield V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		63,411		—		—		—
M&E - 1.90% - MEMBERS Freedom		55,087		—		—		—
M&E - 1.95% - Landmark		10,469		—		—		—
M&E - 1.95% - Landmark Select		—		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		—		—
M&E - 1.95% - Landmark ML		—		—		—		—
M&E - 2.00% - Landmark		266,864		—		—		—
M&E - 2.00% - Suntrust Landmark		—		—		—		—
M&E - 2.00% - Landmark Select		—		—		—		—
M&E - 2.00% - Huntington Landmark		—		—		—		—
M&E - 2.00% - Landmark ML		80,703		—		—		—
M&E - 2.05% - Landmark		—		—		—		—
M&E - 2.05% - Landmark ML		—		—		—		—
M&E - 2.15% - Freedom		—		—		—		—
M&E - 2.20% - Freedom		69,443		—		—		—
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		6,718		—		—		—
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, 2012

	GE Investments Total Return Subaccount		BlackRock Basic Value V.I. Subaccount		BlackRock High Yield V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount
Accumulation unit value: Initial
M&E - 1.25% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.25% - Landmark ML	$	—	$	1.376640	$	2.095794	$	2.304786
M&E - 1.25% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark	$	1.142177	$	—	$	—	$	—
M&E - 1.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.30% - Landmark Select	$	1.142177	$	—	$	—	$	—
M&E - 1.30% - Huntington Landmark	$	1.142177	$	—	$	—	$	—
M&E - 1.30% - Landmark ML	$	1.142177	$	1.392250	$	2.086122	$	2.120581
M&E - 1.30% - MEMBERS Landmark	$	1.142177	$	—	$	—	$	—
M&E - 1.40% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.40% - Landmark ML	$	—	$	2.137580	$	2.053593	$	1.435508
M&E - 1.40% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark	$	1.135198	$	—	$	—	$	—
M&E - 1.50% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.50% - Landmark Select	$	1.135198	$	—	$	—	$	—
M&E - 1.50% - Huntington Landmark	$	1.135198	$	—	$	—	$	—
M&E - 1.50% - Landmark ML	$	1.135198	$	1.337552	$	2.036365	$	2.239319
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	1.135198	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	2.089154	$	2.007092	$	1.402951
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	1.128247	$	—	$	—	$	—
M&E - 1.70% - MEMBERS Freedom	$	1.128247	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	1.124799	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	1.124799	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	1.124799	$	—	$	—	$	—
M&E - 1.80% - Landmark ML	$	1.124799	$	1.320981	$	1.979273	$	2.011950

See accompanying notes.

176

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	GE Investments Total Return Subaccount		BlackRock Basic Value V.I. Subaccount		BlackRock High Yield V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	1.121354	$	—	$	—	$	—
M&E - 1.90% - MEMBERS Freedom	$	1.121354	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	1.119656	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	1.119656	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	1.119656	$	—	$	—	$	—
M&E - 1.95% - Landmark ML	$	1.119656	$	—	$	—	$	—
M&E - 2.00% - Landmark	$	1.117951	$	—	$	—	$	—
M&E - 2.00% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.00% - Landmark Select	$	1.117951	$	—	$	—	$	—
M&E - 2.00% - Huntington Landmark	$	1.117951	$	—	$	—	$	—
M&E - 2.00% - Landmark ML	$	1.117951	$	1.600131	$	1.830935	$	2.429133
M&E - 2.05% - Landmark	$	—	$	—	$	—	$	—
M&E - 2.05% - Landmark ML	$	—	$	1.286786	$	1.928126	$	1.959985
M&E - 2.15% - Freedom	$	—	$	—	$	—	$	—
M&E - 2.20% - Freedom	$	1.111150	$	—	$	—	$	—
M&E - 2.30% - Landmark	$	1.107778	$	—	$	—	$	—
M&E - 2.30% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 2.30% - Landmark Select	$	1.107778	$	—	$	—	$	—
M&E - 2.30% - Huntington Landmark	$	1.107778	$	—	$	—	$	—
M&E - 2.30% - Landmark ML	$	1.107778	$	1.555283	$	1.779585	$	2.361100
M&E - 2.35% - Freedom	$	1.106082	$	—	$	—	$	—
M&E - 2.45% - Landmark	$	1.102725	$	—	$	—	$	—
M&E - 2.45% - Landmark Select	$	1.102725	$	—	$	—	$	—
M&E - 2.45% - Huntington Landmark	$	1.102725	$	—	$	—	$	—
M&E - 2.45% - Landmark ML	$	1.102725	$	—	$	—	$	—

See accompanying notes.

177

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	GE Investments Total Return Subaccount		BlackRock Basic Value V.I. Subaccount		BlackRock High Yield V.I. Subaccount		BlackRock Global Allocation 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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	GE Investments Total Return Subaccount		BlackRock Basic Value V.I. Subaccount		BlackRock High Yield V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	GE Investments Total Return Subaccount		BlackRock Basic Value V.I. Subaccount		BlackRock High Yield V.I. Subaccount		BlackRock Global Allocation 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	GE Investments Total Return Subaccount		BlackRock Basic Value V.I. Subaccount		BlackRock High Yield V.I. Subaccount		BlackRock Global Allocation V.I. Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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, 2012

	Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount		Huntington VA  Income Equity Subaccount		Huntington VA International Equity Subaccount
Assets
Investment in securities:
Number of shares - Initial		279,584.148		62,486.180		19,902.877		195,202.523
Cost	$	2,943,791	$	479,510	$	178,528	$	2,652,067
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	3,013,917	$	519,885	$	191,068	$	2,777,732
Receivable for units sold		1		3		9		—
Total assets		3,013,918		519,888		191,077		2,777,732
Liabilities
Payable for units redeemed		—		—		—		22
Total net assets	$	3,013,918	$	519,888	$	191,077	$	2,777,710
Net Assets:
Deferred annuity contracts terminable by owners	$	3,013,918	$	519,888	$	191,077	$	2,777,710
Total net assets	$	3,013,918	$	519,888	$	191,077	$	2,777,710

See accompanying notes.

182

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount		Huntington VA  Income Equity Subaccount		Huntington VA International Equity 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		2,143,818		400,254		179,428		2,364,758
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
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		539,431		199,825		28,840		644,969
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		68,561		4,987		—		143,799
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, 2012

	Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount		Huntington VA  Income Equity Subaccount		Huntington VA International Equity Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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		—		—		—		3,079
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, 2012

	Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount		Huntington VA  Income Equity Subaccount		Huntington VA International Equity 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	$	1.098200	$	0.862378	$	0.918786	$	0.882917
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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	$	1.086750	$	0.853387	$	0.909208	$	0.873720
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	1.069849	$	0.840095	$	0.895069	$	0.860100
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, 2012

	Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount		Huntington VA  Income Equity Subaccount		Huntington VA International Equity Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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	$	1.058752	$	0.831378	$	0.885762	$	0.851191
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	$	1.042331	$	0.818491	$	0.872032	$	0.837982
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, 2012

	Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount		Huntington VA  Income Equity Subaccount		Huntington VA International Equity 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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount		Huntington VA  Income Equity Subaccount		Huntington VA International Equity Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount		Huntington VA  Income Equity Subaccount		Huntington VA International Equity 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	Huntington VA Dividend Capture Subaccount		Huntington VA Growth Subaccount		Huntington VA  Income Equity Subaccount		Huntington VA International Equity Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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, 2012

	Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount		Huntington VA Mortgage Securities Subaccount		Huntington VA  Real Strategies Subaccount
Assets
Investment in securities:
Number of shares - Initial		23,270.208		57,715.077		114,645.171		140,104.116
Cost	$	210,664	$	1,017,218	$	1,352,533	$	1,219,427
Number of shares - Service		—		—		—		—
Cost	$	—	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	226,186	$	1,067,729	$	1,371,156	$	1,218,906
Receivable for units sold		1		—		—		—
Total assets		226,187		1,067,729		1,371,156		1,218,906
Liabilities
Payable for units redeemed		—		26		1		3
Total net assets	$	226,187	$	1,067,703	$	1,371,155	$	1,218,903
Net Assets:
Deferred annuity contracts terminable by owners	$	226,187	$	1,067,703	$	1,371,155	$	1,218,903
Total net assets	$	226,187	$	1,067,703	$	1,371,155	$	1,218,903

See accompanying notes.

191

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount		Huntington VA Mortgage Securities Subaccount		Huntington VA Real Strategies 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		171,290		561,531		912,320		931,632
M&E - 1.30% - Landmark ML		—		—		—		—
M&E - 1.30% - MEMBERS Landmark		—		—		—		—
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		81,828		432,085		199,047		441,406
M&E - 1.50% - Landmark ML		—		—		—		—
M&E - 1.50% - Freedom		—		—		—		—
M&E - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS Freedom		—		—		—		—
M&E - 1.80% - Landmark		—		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—		—
M&E - 1.80% - Landmark Select		—		—		—		—
M&E - 1.80% - Huntington Landmark		—		4,391		69,878		50,664
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, 2012

	Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount		Huntington VA Mortgage Securities Subaccount		Huntington VA Real Strategies Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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		—		—		—		5,376
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.

193

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount		Huntington VA Mortgage Securities Subaccount		Huntington VA Real Strategies 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	$	0.896626	$	1.074817	$	1.164588	$	0.856591
M&E - 1.30% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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	$	0.887273	$	1.063591	$	1.152487	$	0.847654
M&E - 1.50% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	0.873454	$	1.047054	$	1.134533	$	0.834455
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, 2012

	Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount		Huntington VA Mortgage Securities Subaccount		Huntington VA Real Strategies Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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	$	0.864378	$	1.036186	$	1.122756	$	0.825819
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	$	0.850998	$	1.020108	$	1.105377	$	0.812986
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.

195

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount		Huntington VA Mortgage Securities Subaccount		Huntington VA Real Strategies 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 - 1.30% - MEMBERS Landmark		—		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—		—
M&E - 1.55% - Landmark		—		—		—		—
M&E - 1.55% - Landmark ML		—		—		—		—
M&E - 1.65% - Freedom		—		—		—		—
M&E - 1.70% - Freedom		—		—		—		—
M&E - 1.70% - MEMBERS 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, 2012

	Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount		Huntington VA Mortgage Securities Subaccount		Huntington VA Real Strategies Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—		—
M&E - 1.90% - Freedom		—		—		—		—
M&E - 1.90% - MEMBERS 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, 2012

	Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount		Huntington VA Mortgage Securities Subaccount		Huntington VA Real Strategies 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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, 2012

	Huntington VA  Macro 100 Subaccount		Huntington VA Mid Corp America Subaccount		Huntington VA Mortgage Securities Subaccount		Huntington VA Real Strategies Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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 Assets and Liabilities

December 31, 2012

	Huntington VA Rotating Markets Subaccount		Huntington VA Situs Subaccount		Huntington VA Balanced Subaccount
Assets
Investment in securities:
Number of shares - Initial		79,007.443		202,011.815		1,725,605.799
Cost	$	901,283	$	3,028,544	$	22,104,873
Number of shares - Service		—		—		—
Cost	$	—	$	—	$	—
Investments in mutual funds, Level 1 quoted prices at net asset value	$	982,063	$	3,678,635	$	24,762,443
Receivable for units sold		3		—		425
Total assets		982,066		3,678,635		24,762,868
Liabilities
Payable for units redeemed		—		9		—
Total net assets	$	982,066	$	3,678,626	$	24,762,868
Net Assets:
Deferred annuity contracts terminable by owners	$	982,066	$	3,678,626	$	24,762,868
Total net assets	$	982,066	$	3,678,626	$	24,762,868

See accompanying notes.

200

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA Rotating Markets Subaccount		Huntington VA Situs Subaccount		Huntington VA Balanced 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		532,278		2,182,585		11,732,349
M&E - 1.30% - Landmark ML		—		—		—
M&E - 1.30% - MEMBERS Landmark		—		—		—
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		501,788		869,541		4,231,365
M&E - 1.50% - Landmark ML		—		—		—
M&E - 1.50% - Freedom		—		—		—
M&E - 1.50% - MEMBERS Landmark		—		—		—
M&E - 1.55% - Landmark		—		—		—
M&E - 1.55% - Landmark ML		—		—		—
M&E - 1.65% - Freedom		—		—		—
M&E - 1.70% - Freedom		—		—		—
M&E - 1.70% - MEMBERS Freedom		—		—		—
M&E - 1.80% - Landmark		—		—		—
M&E - 1.80% - Suntrust Landmark		—		—		—
M&E - 1.80% - Landmark Select		—		—		—
M&E - 1.80% - Huntington Landmark		17,225		123,103		1,413,178
M&E - 1.80% - Landmark ML		—		—		—

See accompanying notes.

201

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA Rotating Markets Subaccount		Huntington VA Situs Subaccount		Huntington VA Balanced Subaccount
Accumulation units outstanding: Initial
M&E - 1.85% - Freedom		—		—		—
M&E - 1.90% - Freedom		—		—		—
M&E - 1.90% - MEMBERS Freedom		—		—		—
M&E - 1.95% - Landmark		—		—		—
M&E - 1.95% - Landmark Select		—		—		—
M&E - 1.95% - Huntington Landmark		—		—		3,018
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		13,927		3,427		249,911
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.

202

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA Rotating Markets Subaccount		Huntington VA Situs Subaccount		Huntington VA Balanced 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	$	0.927301	$	1.161803	$	1.408683
M&E - 1.30% - Landmark ML	$	—	$	—	$	—
M&E - 1.30% - MEMBERS Landmark	$	—	$	—	$	—
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	$	0.917665	$	1.149714	$	1.397223
M&E - 1.50% - Landmark ML	$	—	$	—	$	—
M&E - 1.50% - Freedom	$	—	$	—	$	—
M&E - 1.50% - MEMBERS Landmark	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—
M&E - 1.70% - MEMBERS Freedom	$	—	$	—	$	—
M&E - 1.80% - Landmark	$	—	$	—	$	—
M&E - 1.80% - Suntrust Landmark	$	—	$	—	$	—
M&E - 1.80% - Landmark Select	$	—	$	—	$	—
M&E - 1.80% - Huntington Landmark	$	0.903361	$	1.131818	$	1.380253
M&E - 1.80% - Landmark ML	$	—	$	—	$	—

See accompanying notes.

203

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA Rotating Markets Subaccount		Huntington VA Situs Subaccount		Huntington VA Balanced Subaccount
Accumulation unit value: Initial
M&E - 1.85% - Freedom	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—
M&E - 1.90% - MEMBERS Freedom	$	—	$	—	$	—
M&E - 1.95% - Landmark	$	—	$	—	$	—
M&E - 1.95% - Landmark Select	$	—	$	—	$	—
M&E - 1.95% - Huntington Landmark	$	—	$	—	$	1.371856
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	$	0.893983	$	1.120051	$	1.369069
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	$	0.880138	$	1.102700	$	1.352512
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	$	—	$	—	$	1.344332
M&E - 2.45% - Landmark ML	$	—	$	—	$	—

See accompanying notes.

204

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA Rotating Markets Subaccount		Huntington VA Situs Subaccount		Huntington VA 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 - 1.30% - MEMBERS Landmark		—		—		—
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 - 1.50% - MEMBERS Landmark		—		—		—
M&E - 1.55% - Landmark		—		—		—
M&E - 1.55% - Landmark ML		—		—		—
M&E - 1.65% - Freedom		—		—		—
M&E - 1.70% - Freedom		—		—		—
M&E - 1.70% - MEMBERS 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.

205

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA Rotating Markets Subaccount		Huntington VA Situs Subaccount		Huntington VA Balanced Subaccount
Accumulation units outstanding: Service
M&E - 1.85% - Freedom		—		—		—
M&E - 1.90% - Freedom		—		—		—
M&E - 1.90% - MEMBERS 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.

206

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA Rotating Markets Subaccount		Huntington VA Situs Subaccount		Huntington VA 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 - 1.30% - MEMBERS Landmark	$	—	$	—	$	—
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 - 1.50% - MEMBERS Landmark	$	—	$	—	$	—
M&E - 1.55% - Landmark	$	—	$	—	$	—
M&E - 1.55% - Landmark ML	$	—	$	—	$	—
M&E - 1.65% - Freedom	$	—	$	—	$	—
M&E - 1.70% - Freedom	$	—	$	—	$	—
M&E - 1.70% - MEMBERS 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.

207

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2012

	Huntington VA Rotating Markets Subaccount		Huntington VA Situs Subaccount		Huntington VA Balanced Subaccount
Accumulation unit value: Service
M&E - 1.85% - Freedom	$	—	$	—	$	—
M&E - 1.90% - Freedom	$	—	$	—	$	—
M&E - 1.90% - MEMBERS 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.

208

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA Asset Allocation - Growth			TA Asset Allocation - Conservative			TA Asset Allocation - Moderate			TA Asset Allocation - Moderate Growth
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	384,350,007		$	663,216,570		$	1,328,831,884		$	1,848,961,931
Investment income:
Dividends		4,050,988			19,226,778			32,143,669			34,747,694
Investment expenses:
Mortality and expense risk and other charges		5,397,035			10,205,046			20,506,275			26,306,426
Net investment income (loss)		(1,346,047	)		9,021,732			11,637,394			8,441,268
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		(35,822,228	)		6,710,988			(24,875,765	)		(54,570,915	)
Net realized capital gains (losses) on investments		(35,822,228	)		6,710,988			(24,875,765	)		(54,570,915	)
Net change in unrealized appreciation (depreciation)		12,133,612			(9,994,624	)		(5,289,073	)		(17,954,477	)
Net gain (loss) on investment		(23,688,616	)		(3,283,636	)		(30,164,838	)		(72,525,392	)
Increase (decrease) in net assets from operations		(25,034,663	)		5,738,096			(18,527,444	)		(64,084,124	)
Increase (decrease) in net assets from contract transactions		(35,873,846	)		65,674,128			216,555,387			(93,851,943	)
Total increase (decrease) in net assets		(60,908,509	)		71,412,224			198,027,943			(157,936,067	)
Net Assets as of December 31, 2011	$	323,441,498		$	734,628,794		$	1,526,859,827		$	1,691,025,864
Investment income:
Dividends		4,190,477			22,732,717			43,381,040			41,366,224
Investment expenses:
Mortality and expense risk and other charges		4,957,560			10,840,696			23,996,798			25,630,906
Net investment income (loss)		(767,083	)		11,892,021			19,384,242			15,735,318
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		(24,417,520	)		12,614,001			(18,457,179	)		(42,899,947	)
Net realized capital gains (losses) on investments		(24,417,520	)		12,614,001			(18,457,179	)		(42,899,947	)
Net change in unrealized appreciation (depreciation)		59,622,913			17,270,838			119,984,314			176,014,017
Net gain (loss) on investment		35,205,393			29,884,839			101,527,135			133,114,070
Increase (decrease) in net assets from operations		34,438,310			41,776,860			120,911,377			148,849,388
Increase (decrease) in net assets from contract transactions		(29,455,964	)		(344,890	)		157,551,390			(64,438,978	)
Total increase (decrease) in net assets		4,982,346			41,431,970			278,462,767			84,410,410
Net Assets as of December 31, 2012	$	328,423,844		$	776,060,764		$	1,805,322,594		$	1,775,436,274

See accompanying notes.

⁽¹⁾  See footnote 1

209

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA WMC Diversified Growth			TA MFS International Equity			TA Clarion Global Real Estate Securities			TA Systematic Small/Mid Cap Value
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	183,017,814		$	72,045,895		$	56,085,937		$	167,789,740
Investment income:
Dividends		628,554			885,267			4,184,443			225,462
Investment expenses:
Mortality and expense risk and other charges		2,428,102			1,032,610			864,680			2,300,920
Net investment income (loss)		(1,799,548	)		(147,343	)		3,319,763			(2,075,458	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		(3,207,023	)		(4,588,140	)		(7,674,738	)		16,503,433
Net realized capital gains (losses) on investments		(3,207,023	)		(4,588,140	)		(7,674,738	)		16,503,433
Net change in unrealized appreciation (depreciation)		(3,180,395	)		(3,731,595	)		(272,959	)		(20,818,257	)
Net gain (loss) on investment		(6,387,418	)		(8,319,735	)		(7,947,697	)		(4,314,824	)
Increase (decrease) in net assets from operations		(8,186,966	)		(8,467,078	)		(4,627,934	)		(6,390,282	)
Increase (decrease) in net assets from contract transactions		74,516,184			(95,050	)		5,689,010			(13,016,981	)
Total increase (decrease) in net assets		66,329,218			(8,562,128	)		1,061,076			(19,407,263	)
Net Assets as of December 31, 2011	$	249,347,032		$	63,483,767		$	57,147,013		$	148,382,477
Investment income:
Dividends		747,389			1,126,137			2,297,725			748,105
Investment expenses:
Mortality and expense risk and other charges		3,761,791			1,003,795			964,714			2,196,533
Net investment income (loss)		(3,014,402	)		122,342			1,333,011			(1,448,428	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			39,138,344
Realized gain (loss) on investments		(1,830,547	)		(2,937,423	)		(5,903,536	)		12,327,083
Net realized capital gains (losses) on investments		(1,830,547	)		(2,937,423	)		(5,903,536	)		51,465,427
Net change in unrealized appreciation (depreciation)		33,223,736			15,391,019			18,125,006			(29,056,254	)
Net gain (loss) on investment		31,393,189			12,453,596			12,221,470			22,409,173
Increase (decrease) in net assets from operations		28,378,787			12,575,938			13,554,481			20,960,745
Increase (decrease) in net assets from contract transactions		(34,483,699	)		(330,817	)		3,868,492			(16,960,054	)
Total increase (decrease) in net assets		(6,104,912	)		12,245,121			17,422,973			4,000,691
Net Assets as of December 31, 2012	$	243,242,120		$	75,728,888		$	74,569,986		$	152,383,168

See accompanying notes.

⁽¹⁾  See footnote 1

210

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA Multi-Managed Balanced			TA Jennison Growth			TA JPMorgan Enhanced Index			TA AEGON High Yield Bond
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	68,704,597		$	189,194,997		$	85,659,071		$	102,542,200
Investment income:
Dividends		1,877,134			197,978			816,321			7,542,153
Investment expenses:
Mortality and expense risk and other charges		1,167,192			2,602,298			1,043,410			1,539,304
Net investment income (loss)		709,942			(2,404,320	)		(227,089	)		6,002,849
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		1,099,913			3,436,951			(5,552,395	)		3,289,714
Net realized capital gains (losses) on investments		1,099,913			3,436,951			(5,552,395	)		3,289,714
Net change in unrealized appreciation (depreciation)		(484,742	)		(4,014,953	)		5,802,279			(6,037,083	)
Net gain (loss) on investment		615,171			(578,002	)		249,884			(2,747,369	)
Increase (decrease) in net assets from operations		1,325,113			(2,982,322	)		22,795			3,255,480
Increase (decrease) in net assets from contract transactions		14,290,787			(22,643,993	)		(25,244,935	)		1,771,679
Total increase (decrease) in net assets		15,615,900			(25,626,315	)		(25,222,140	)		5,027,159
Net Assets as of December 31, 2011	$	84,320,497		$	163,568,682		$	60,436,931		$	107,569,359
Investment income:
Dividends		1,581,184			107,724			760,397			7,545,505
Investment expenses:
Mortality and expense risk and other charges		1,461,850			2,576,416			989,384			1,863,001
Net investment income (loss)		119,334			(2,468,692	)		(228,987	)		5,682,504
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		16,007,368			12,209,292			—			—
Realized gain (loss) on investments		3,890,134			3,932,680			954,727			965,439
Net realized capital gains (losses) on investments		19,897,502			16,141,972			954,727			965,439
Net change in unrealized appreciation (depreciation)		(10,299,953	)		9,161,569			8,297,361			11,132,371
Net gain (loss) on investment		9,597,549			25,303,541			9,252,088			12,097,810
Increase (decrease) in net assets from operations		9,716,883			22,834,849			9,023,101			17,780,314
Increase (decrease) in net assets from contract transactions		17,478,046			(13,147,727	)		(363,285	)		24,261,381
Total increase (decrease) in net assets		27,194,929			9,687,122			8,659,816			42,041,695
Net Assets as of December 31, 2012	$	111,515,426		$	173,255,804		$	69,096,747		$	149,611,054

See accompanying notes.

⁽¹⁾  See footnote 1

211

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA BlackRock Large Cap Value			TA PIMCO Total Return		TA Morgan Stanley Capital Growth			TA AllianceBernstein Dynamic Allocation
	Subaccount			Subaccount		Subaccount			Subaccount
Net Assets as of January 1, 2011	$	404,764,627		$	498,064,052	$	85,216,855		$	45,361,877
Investment income:
Dividends		6,878,413			12,212,450		—			807,798
Investment expenses:
Mortality and expense risk and other charges		5,708,837			7,476,256		1,249,048			1,264,952
Net investment income (loss)		1,169,576			4,736,194		(1,249,048	)		(457,154	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			13,412,659		—			—
Realized gain (loss) on investments		7,824,951			3,907,486		(1,334,741	)		491,969
Net realized capital gains (losses) on investments		7,824,951			17,320,145		(1,334,741	)		491,969
Net change in unrealized appreciation (depreciation)		(3,636,434	)		661,600		(3,283,928	)		(350,656	)
Net gain (loss) on investment		4,188,517			17,981,745		(4,618,669	)		141,313
Increase (decrease) in net assets from operations		5,358,093			22,717,939		(5,867,717	)		(315,841	)
Increase (decrease) in net assets from contract transactions		(36,965,502	)		43,654,978		(3,327,473	)		86,347,770
Total increase (decrease) in net assets		(31,607,409	)		66,372,917		(9,195,190	)		86,031,929
Net Assets as of December 31, 2011	$	373,157,218		$	564,436,969	$	76,021,665		$	131,393,806
Investment income:
Dividends		6,820,624			25,692,705		—			1,198,281
Investment expenses:
Mortality and expense risk and other charges		5,579,077			9,017,652		1,225,680			2,165,916
Net investment income (loss)		1,241,547			16,675,053		(1,225,680	)		(967,635	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—		15,354,180			—
Realized gain (loss) on investments		8,970,978			4,448,427		(2,539,570	)		1,674,193
Net realized capital gains (losses) on investments		8,970,978			4,448,427		12,814,610			1,674,193
Net change in unrealized appreciation (depreciation)		26,221,927			13,722,705		(1,265,891	)		5,649,600
Net gain (loss) on investment		35,192,905			18,171,132		11,548,719			7,323,793
Increase (decrease) in net assets from operations		36,434,452			34,846,185		10,323,039			6,356,158
Increase (decrease) in net assets from contract transactions		(31,216,986	)		103,905,061		(3,711,283	)		32,891,350
Total increase (decrease) in net assets		5,217,466			138,751,246		6,611,756			39,247,508
Net Assets as of December 31, 2012	$	378,374,684		$	703,188,215	$	82,633,421		$	170,641,314

See accompanying notes.

⁽¹⁾  See footnote 1

212

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA AEGON U.S. Government Securities			TA T. Rowe Price Small Cap			TA Morgan Stanley Active International Allocation			TA Multi Managed Large Cap Core
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	195,750,893		$	92,110,138		$	105,560,749		$	167,422,672
Investment income:
Dividends		4,784,733			—			1,291,725			1,171,459
Investment expenses:
Mortality and expense risk and other charges		2,677,996			1,411,443			1,371,542			2,368,877
Net investment income (loss)		2,106,737			(1,411,443	)		(79,817	)		(1,197,418	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		3,091,641			—			—			—
Realized gain (loss) on investments		1,338,151			(52,896	)		(2,727,756	)		(235,747	)
Net realized capital gains (losses) on investments		4,429,792			(52,896	)		(2,727,756	)		(235,747	)
Net change in unrealized appreciation (depreciation)		4,042,635			1,134,546			(11,935,569	)		(4,365,744	)
Net gain (loss) on investment		8,472,427			1,081,650			(14,663,325	)		(4,601,491	)
Increase (decrease) in net assets from operations		10,579,164			(329,793	)		(14,743,142	)		(5,798,909	)
Increase (decrease) in net assets from contract transactions		20,091,117			2,407,725			(11,541,104	)		(10,281,509	)
Total increase (decrease) in net assets		30,670,281			2,077,932			(26,284,246	)		(16,080,418	)
Net Assets as of December 31, 2011	$	226,421,174		$	94,188,070		$	79,276,503		$	151,342,254
Investment income:
Dividends		3,839,555			—			1,764,049			1,293,481
Investment expenses:
Mortality and expense risk and other charges		3,518,411			1,503,000			1,167,094			2,323,425
Net investment income (loss)		321,144			(1,503,000	)		596,955			(1,029,944	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		5,956,653			7,538,063			—			—
Realized gain (loss) on investments		4,784,191			2,737,332			(6,518,924	)		2,416,553
Net realized capital gains (losses) on investments		10,740,844			10,275,395			(6,518,924	)		2,416,553
Net change in unrealized appreciation (depreciation)		(2,737,831	)		4,189,587			17,227,325			21,252,454
Net gain (loss) on investment		8,003,013			14,464,982			10,708,401			23,669,007
Increase (decrease) in net assets from operations		8,324,157			12,961,982			11,305,356			22,639,063
Increase (decrease) in net assets from contract transactions		32,926,607			92,903			(7,044,187	)		(16,359,239	)
Total increase (decrease) in net assets		41,250,764			13,054,885			4,261,169			6,279,824
Net Assets as of December 31, 2012	$	267,671,938		$	107,242,955		$	83,537,672		$	157,622,078

See accompanying notes.

⁽¹⁾  See footnote 1

213

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA AEGON Money Market			TA Morgan Stanley Mid-Cap Growth			TA AEGON U.S. Government Securities - PAM - SC			TA International Moderate Growth - SC
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	240,583,329		$	49,878,592		$	56,311,869		$	169,854,337
Investment income:
Dividends		12,680			156,417			1,815,185			3,251,885
Investment expenses:
Mortality and expense risk and other charges		3,614,980			765,468			834,571			2,447,412
Net investment income (loss)		(3,602,300	)		(609,051	)		980,614			804,473
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			1,233,739			—
Realized gain (loss) on investments		—			4,704,619			351,328			(4,023,842	)
Net realized capital gains (losses) on investments		—			4,704,619			1,585,067			(4,023,842	)
Net change in unrealized appreciation (depreciation)		—			(8,808,169	)		195,860			(12,211,613	)
Net gain (loss) on investment		—			(4,103,550	)		1,780,927			(16,235,455	)
Increase (decrease) in net assets from operations		(3,602,300	)		(4,712,601	)		2,761,541			(15,430,982	)
Increase (decrease) in net assets from contract transactions		23,307,441			47,553,849			31,565,757			2,119,218
Total increase (decrease) in net assets		19,705,141			42,841,248			34,327,298			(13,311,764	)
Net Assets as of December 31, 2011	$	260,288,470		$	92,719,840		$	90,639,167		$	156,542,573
Investment income:
Dividends		12,335			—			1,079,326			4,604,177
Investment expenses:
Mortality and expense risk and other charges		3,482,786			1,411,815			955,166			2,360,158
Net investment income (loss)		(3,470,451	)		(1,411,815	)		124,160			2,244,019
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			4,908,428			1,754,953			—
Realized gain (loss) on investments		—			3,368,565			158,004			(2,534,308	)
Net realized capital gains (losses) on investments		—			8,276,993			1,912,957			(2,534,308	)
Net change in unrealized appreciation (depreciation)		—			(316,563	)		290,296			17,360,758
Net gain (loss) on investment		—			7,960,430			2,203,253			14,826,450
Increase (decrease) in net assets from operations		(3,470,451	)		6,548,615			2,327,413			17,070,469
Increase (decrease) in net assets from contract transactions		(11,948,602	)		(6,789,865	)		(32,122,787	)		3,456,503
Total increase (decrease) in net assets		(15,419,053	)		(241,250	)		(29,795,374	)		20,526,972
Net Assets as of December 31, 2012	$	244,869,417		$	92,478,590		$	60,843,793		$	177,069,545

See accompanying notes.

⁽¹⁾  See footnote 1

214

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA Vanguard ETF Index - Balanced - SC			TA Vanguard ETF Index - Growth - SC			TA Efficient Markets - SC			TA BlackRock Global Allocation - SC
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	85,012,842		$	181,958,510		$	21,946,805		$	310,739,807
Investment income:
Dividends		1,870,020			3,230,023			229,162			3,025,661
Investment expenses:
Mortality and expense risk and other charges		2,085,765			2,974,100			381,797			6,421,769
Net investment income (loss)		(215,745	)		255,923			(152,635	)		(3,396,108	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		1,982,614			2,336,843			426,538			1,667,510
Realized gain (loss) on investments		986,021			2,445,449			789,094			1,572,049
Net realized capital gains (losses) on investments		2,968,635			4,782,292			1,215,632			3,239,559
Net change in unrealized appreciation (depreciation)		(3,615,853	)		(11,495,327	)		(2,310,209	)		(28,906,278	)
Net gain (loss) on investment		(647,218	)		(6,713,035	)		(1,094,577	)		(25,666,719	)
Increase (decrease) in net assets from operations		(862,963	)		(6,457,112	)		(1,247,212	)		(29,062,827	)
Increase (decrease) in net assets from contract transactions		158,344,645			51,321,114			10,085,092			227,750,246
Total increase (decrease) in net assets		157,481,682			44,864,002			8,837,880			198,687,419
Net Assets as of December 31, 2011	$	242,494,524		$	226,822,512		$	30,784,685		$	509,427,226
Investment income:
Dividends		4,254,593			4,370,774			451,485			12,917,782
Investment expenses:
Mortality and expense risk and other charges		4,528,973			3,704,562			467,246			8,226,147
Net investment income (loss)		(274,380	)		666,212			(15,761	)		4,691,635
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		8,665,149			22,294,634			1,283,396			9,710,188
Realized gain (loss) on investments		1,213,373			4,656,349			402,287			3,951,437
Net realized capital gains (losses) on investments		9,878,522			26,950,983			1,685,683			13,661,625
Net change in unrealized appreciation (depreciation)		11,885,535			(3,111,898	)		1,594,570			24,726,065
Net gain (loss) on investment		21,764,057			23,839,085			3,280,253			38,387,690
Increase (decrease) in net assets from operations		21,489,677			24,505,297			3,264,492			43,079,325
Increase (decrease) in net assets from contract transactions		168,589,811			60,662,479			739,571			16,345,580
Total increase (decrease) in net assets		190,079,488			85,167,776			4,004,063			59,424,905
Net Assets as of December 31, 2012	$	432,574,012		$	311,990,288		$	34,788,748		$	568,852,131

See accompanying notes.

⁽¹⁾  See footnote 1

215

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA BlackRock Tactical Allocation - SC			TA ProFunds UltraBear - OAM - SC			TA Janus Balanced - SC			TA PIMCO Tactical - Growth - SC
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	101,263,833		$	7,265,669		$	17,072,345		$	14,531,476
Investment income:
Dividends		1,899,440			—			37,539			258,534
Investment expenses:
Mortality and expense risk and other charges		2,208,721			413,021			330,058			245,515
Net investment income (loss)		(309,281	)		(413,021	)		(292,519	)		13,019
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		1,405,396			—			—			1,248
Realized gain (loss) on investments		827,304			(5,013,404	)		(156,391	)		(134,407	)
Net realized capital gains (losses) on investments		2,232,700			(5,013,404	)		(156,391	)		(133,159	)
Net change in unrealized appreciation (depreciation)		(204,608	)		(15,014,488	)		(3,422,638	)		(2,487,461	)
Net gain (loss) on investment		2,028,092			(20,027,892	)		(3,579,029	)		(2,620,620	)
Increase (decrease) in net assets from operations		1,718,811			(20,440,913	)		(3,871,548	)		(2,607,601	)
Increase (decrease) in net assets from contract transactions		100,130,024			80,708,446			11,130,656			4,663,389
Total increase (decrease) in net assets		101,848,835			60,267,533			7,259,108			2,055,788
Net Assets as of December 31, 2011	$	203,112,668		$	67,533,202		$	24,331,453		$	16,587,264
Investment income:
Dividends		4,316,489			—			—			88,035
Investment expenses:
Mortality and expense risk and other charges		4,107,453			690,979			419,566			235,629
Net investment income (loss)		209,036			(690,979	)		(419,566	)		(147,594	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		7,108,275			—			—			—
Realized gain (loss) on investments		1,048,312			(30,329,804	)		37,210			(501,915	)
Net realized capital gains (losses) on investments		8,156,587			(30,329,804	)		37,210			(501,915	)
Net change in unrealized appreciation (depreciation)		12,618,693			7,544,395			3,300,499			556,426
Net gain (loss) on investment		20,775,280			(22,785,409	)		3,337,709			54,511
Increase (decrease) in net assets from operations		20,984,316			(23,476,388	)		2,918,143			(93,083	)
Increase (decrease) in net assets from contract transactions		160,714,474			1,243,679			12,394,133			1,883,148
Total increase (decrease) in net assets		181,698,790			(22,232,709	)		15,312,276			1,790,065
Net Assets as of December 31, 2012	$	384,811,458		$	45,300,493		$	39,643,729		$	18,377,329

See accompanying notes.

⁽¹⁾  See footnote 1

216

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA PIMCO Tactical - Conservative - SC			TA PIMCO Tactical - Balanced - SC			TA Hanlon Income - SC			TA Vanguard ETF Index - Conservative - SC
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	15,698,812		$	30,638,198		$	134,524,479		$	23,399,680
Investment income:
Dividends		262,618			421,364			1,816,012			283,031
Investment expenses:
Mortality and expense risk and other charges		261,816			474,619			1,714,248			530,679
Net investment income (loss)		802			(53,255	)		101,764			(247,648	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			596,946			125,738
Realized gain (loss) on investments		(114,598	)		(140,957	)		191,129			359,941
Net realized capital gains (losses) on investments		(114,598	)		(140,957	)		788,075			485,679
Net change in unrealized appreciation (depreciation)		(1,776,210	)		(1,613,176	)		946,656			269,988
Net gain (loss) on investment		(1,890,808	)		(1,754,133	)		1,734,731			755,667
Increase (decrease) in net assets from operations		(1,890,006	)		(1,807,388	)		1,836,495			508,019
Increase (decrease) in net assets from contract transactions		5,459,805			5,604,819			(9,574,638	)		36,419,485
Total increase (decrease) in net assets		3,569,799			3,797,431			(7,738,143	)		36,927,504
Net Assets as of December 31, 2011	$	19,268,611		$	34,435,629		$	126,786,336		$	60,327,184
Investment income:
Dividends		226,704			513,209			2,662,569			1,013,751
Investment expenses:
Mortality and expense risk and other charges		266,513			452,662			1,713,306			1,231,341
Net investment income (loss)		(39,809	)		60,547			9,49,263			(217,590	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			907,043
Realized gain (loss) on investments		(296,337	)		(342,726	)		256,092			889,314
Net realized capital gains (losses) on investments		(296,337	)		(342,726	)		256,092			1,796,357
Net change in unrealized appreciation (depreciation)		396,315			235,167			1,202,098			2,702,683
Net gain (loss) on investment		99,978			(107,559	)		1,458,190			4,499,040
Increase (decrease) in net assets from operations		60,169			(47,012	)		2,407,453			4,281,450
Increase (decrease) in net assets from contract transactions		3,377,393			4,064,606			(12,636,515	)		49,326,816
Total increase (decrease) in net assets		3,437,562			4,017,594			(10,229,062	)		53,608,266
Net Assets as of December 31, 2012	$	22,706,173		$	38,453,223		$	116,557,274		$	113,935,450

See accompanying notes.

⁽¹⁾  See footnote 1

217

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA Vanguard ETF Index - Aggressive Growth - SC			TA JPMorgan Mid Cap Value - SC			TA PIMCO Real Return TIPS - SC			TA Madison Balanced Allocation - SC
	Subaccount			Subaccount			Subaccount(1)			Subaccount(1)
Net Assets as of January 1, 2011	$	7,414,922		$	7,207,008		$	—		$	—
Investment income:
Dividends		96,828			168,301			—			—
Investment expenses:
Mortality and expense risk and other charges		171,842			197,346			88,050			32,979
Net investment income (loss)		(75,014	)		(29,045	)		(88,050	)		(32,979	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		5,348			—			—			—
Realized gain (loss) on investments		308,492			262,936			56,565			(3,131	)
Net realized capital gains (losses) on investments		313,840			262,936			56,565			(3,131	)
Net change in unrealized appreciation (depreciation)		(1,229,785	)		(569,172	)		502,004			95,145
Net gain (loss) on investment		(915,945	)		(306,236	)		558,569			92,014
Increase (decrease) in net assets from operations		(990,959	)		(335,281	)		470,519			59,035
Increase (decrease) in net assets from contract transactions		9,204,703			9,924,746			23,246,277			10,356,679
Total increase (decrease) in net assets		8,213,744			9,589,465			23,716,796			10,415,714
Net Assets as of December 31, 2011	$	15,628,666		$	16,796,473		$	23,716,796		$	10,415,714
Investment income:
Dividends		231,342			136,974			119,585			110,818
Investment expenses:
Mortality and expense risk and other charges		300,531			312,079			635,095			254,185
Net investment income (loss)		(69,189	)		(175,105	)		(515,510	)		(143,367	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		337,519			—			704,012			91,562
Realized gain (loss) on investments		488,694			616,280			288,701			627
Net realized capital gains (losses) on investments		826,213			616,280			992,713			92,189
Net change in unrealized appreciation (depreciation)		2,091,448			2,987,355			1,309,641			1,175,135
Net gain (loss) on investment		2,917,661			3,603,635			2,302,354			1,267,324
Increase (decrease) in net assets from operations		2,848,472			3,428,530			1,786,844			1,123,957
Increase (decrease) in net assets from contract transactions		12,347,714			7,322,057			48,360,864			15,970,599
Total increase (decrease) in net assets		15,196,186			10,750,587			50,147,708			17,094,556
Net Assets as of December 31, 2012	$	30,824,852		$	27,547,060		$	73,864,504		$	27,510,270

See accompanying notes.

⁽¹⁾  See footnote 1

218

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA Madison Diversified Income - SC			TA Madison Conservative Allocation - SC			TA AEGON Tactical Vanguard ETF - Growth - SC			TA AEGON Tactical Vanguard ETF - Balanced - SC
	Subaccount(1)			Subaccount(1)			Subaccount(1)			Subaccount(1)
Net Assets as of January 1, 2011	$	—		$	—		$	—		$	—
Investment income:
Dividends		—			—			—			—
Investment expenses:
Mortality and expense risk and other charges		40,801			29,671			57,084			38,989
Net investment income (loss)		(40,801	)		(29,671	)		(57,084	)		(38,989	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		(793	)		(2,015	)		(46,058	)		(23,046	)
Net realized capital gains (losses) on investments		(793	)		(2,015	)		(46,058	)		(23,046	)
Net change in unrealized appreciation (depreciation)		314,190			48,280			(507,182	)		33,363
Net gain (loss) on investment		313,397			46,265			(553,240	)		10,317
Increase (decrease) in net assets from operations		272,596			16,594			(610,324	)		(28,672	)
Increase (decrease) in net assets from contract transactions		11,747,719			7,333,517			47,448,312			9,811,361
Total increase (decrease) in net assets		12,020,315			7,350,111			46,837,988			9,782,689
Net Assets as of December 31, 2011	$	12,020,315		$	7,350,111		$	46,837,988		$	9,782,689
Investment income:
Dividends		23,371			83,577			441,394			97,150
Investment expenses:
Mortality and expense risk and other charges		349,730			239,280			890,990			762,715
Net investment income (loss)		(326,359	)		(155,703	)		(449,596	)		(665,565	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		677			36,572			—			73,264
Realized gain (loss) on investments		9,379			11,060			876,204			28,131
Net realized capital gains (losses) on investments		10,056			47,632			876,204			101,395
Net change in unrealized appreciation (depreciation)		1,145,142			897,394			5,181,344			3,882,515
Net gain (loss) on investment		1,155,198			9,45,026			6,057,548			3,983,910
Increase (decrease) in net assets from operations		828,839			789,323			5,607,952			3,318,345
Increase (decrease) in net assets from contract transactions		31,060,623			23,013,353			34,617,285			102,437,897
Total increase (decrease) in net assets		31,889,462			23,802,676			40,225,237			105,756,242
Net Assets as of December 31, 2012	$	43,909,777		$	31,152,787		$	87,063,225		$	115,538,931

See accompanying notes.

⁽¹⁾  See footnote 1

219

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA AEGON Tactical Vanguard ETF - Conservative - SC			TA JPMorgan Core Bond - SC		TA JPMorgan Tactical Allocation - SC			TA Legg Mason Dynamic Allocation - Balanced - SC
	Subaccount(1)			Subaccount(1)		Subaccount(1)			Subaccount(1)
Net Assets as of January 1, 2011	$	—		$	—	$	—		$	—
Investment income:
Dividends		—			159,346		154,685			—
Investment expenses:
Mortality and expense risk and other charges		94,889			47,375		113,039			—
Net investment income (loss)		(94,889	)		111,971		41,646			—
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			4,969		—			—
Realized gain (loss) on investments		(18,812	)		1,162		(3,914	)		—
Net realized capital gains (losses) on investments		(18,812	)		6,131		(3,914	)		—
Net change in unrealized appreciation (depreciation)		350,366			26,730		267,060			—
Net gain (loss) on investment		331,554			32,861		263,146			—
Increase (decrease) in net assets from operations		236,665			144,832		304,792			—
Increase (decrease) in net assets from contract transactions		47,449,592			13,230,076		32,931,377			—
Total increase (decrease) in net assets		47,686,257			13,374,908		33,236,169			—
Net Assets as of December 31, 2011	$	47,686,257		$	13,374,908	$	33,236,169		$	—
Investment income:
Dividends		311,289			624,845		467,842			—
Investment expenses:
Mortality and expense risk and other charges		1,055,014			312,882		1,035,703			109,096
Net investment income (loss)		(743,725	)		311,963		(567,861	)		(109,096	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		424,520			9,898		—			—
Realized gain (loss) on investments		145,122			10,409		74,376			1,313
Net realized capital gains (losses) on investments		569,642			20,307		74,376			1,313
Net change in unrealized appreciation (depreciation)		4,055,547			332,282		4,225,155			254,156
Net gain (loss) on investment		4,625,189			352,589		4,299,531			255,469
Increase (decrease) in net assets from operations		3,881,464			664,552		3,731,670			146,373
Increase (decrease) in net assets from contract transactions		51,487,149			17,721,794		89,612,177			30,670,064
Total increase (decrease) in net assets		55,368,613			18,386,346		93,343,847			30,816,437
Net Assets as of December 31, 2012	$	103,054,870		$	31,761,254	$	126,580,016		$	30,816,437

See accompanying notes.

⁽¹⁾  See footnote 1

220

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	TA Legg Mason Dynamic Allocation - Growth - SC			TA Market Participation Strategy - SC			Invesco Van Kampen V.I. Value Opportunities			Invesco Van Kampen V.I. American Franchise
	Subaccount(1)			Subaccount(1)			Subaccount			Subaccount(1)
Net Assets as of January 1, 2011	$	—		$	—		$	23,894,883		$	—
Investment income:
Dividends		—			—			134,285			—
Investment expenses:
Mortality and expense risk and other charges		—			—			320,679			—
Net investment income (loss)		—			—			(186,394	)		—
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		—			—			(3,846,563	)		—
Net realized capital gains (losses) on investments		—			—			(3,846,563	)		—
Net change in unrealized appreciation (depreciation)		—			—			2,982,485			—
Net gain (loss) on investment		—			—			(864,078	)		—
Increase (decrease) in net assets from operations		—			—			(1,050,472	)		—
Increase (decrease) in net assets from contract transactions		—			—			(2,504,536	)		—
Total increase (decrease) in net assets		—			—			(3,555,008	)		—
Net Assets as of December 31, 2011	$	—		$	—		$	20,339,875		$	—
Investment income:
Dividends		—			—			230,853			—
Investment expenses:
Mortality and expense risk and other charges		32,517			9,275			285,075			52,549
Net investment income (loss)		(32,517	)		(9,275	)		(54,222	)		(52,549	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		1,665			2,507			(1,959,912	)		(57,523	)
Net realized capital gains (losses) on investments		1,665			2,507			(1,959,912	)		(57,523	)
Net change in unrealized appreciation (depreciation)		107,979			49,475			4,968,433			(137,428	)
Net gain (loss) on investment		109,644			51,982			3,008,521			(194,951	)
Increase (decrease) in net assets from operations		77,127			42,707			2,954,299			(247,500	)
Increase (decrease) in net assets from contract transactions		9,590,556			6,304,918			(4,711,056	)		5,312,311
Total increase (decrease) in net assets		9,667,683			6,347,625			(1,756,757	)		5,064,811
Net Assets as of December 31, 2012	$	9,667,683		$	6,347,625		$	18,583,118		$	5,064,811

See accompanying notes.

⁽¹⁾  See footnote 1

221

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	AllianceBernstein Growth & Income			AllianceBernstein Large Cap Growth			AllianceBernstein Balanced Wealth Strategy			Janus Aspen - Enterprise
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	41,152,047		$	23,360,452		$	18,296,754		$	20,135,138
Investment income:
Dividends		468,183			21,456			498,822			—
Investment expenses:
Mortality and expense risk and other charges		633,642			352,700			394,260			277,988
Net investment income (loss)		(1,65,459	)		(331,244	)		104,562			(277,988	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		(1,658,677	)		1,020,689			468,798			700,235
Net realized capital gains (losses) on investments		(1,658,677	)		1,020,689			468,798			700,235
Net change in unrealized appreciation (depreciation)		3,704,250			(2,024,603	)		(1,891,484	)		(1,044,268	)
Net gain (loss) on investment		2,045,573			(1,003,914	)		(1,422,686	)		(344,033	)
Increase (decrease) in net assets from operations		1,880,114			(1,335,158	)		(1,318,124	)		(622,021	)
Increase (decrease) in net assets from contract transactions		4,008,670			1,086,666			11,608,749			(2,529,508	)
Total increase (decrease) in net assets		5,888,784			(248,492	)		10,290,625			(3,151,529	)
Net Assets as of December 31, 2011	$	47,040,831		$	23,111,960		$	28,587,379		$	16,983,609
Investment income:
Dividends		731,770			6,641			617,871			—
Investment expenses:
Mortality and expense risk and other charges		798,214			329,226			523,835			233,856
Net investment income (loss)		(66,444	)		(322,585	)		94,036			(233,856	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		(1,635,631	)		1,275,159			683,960			2,371,157
Net realized capital gains (losses) on investments		(1,635,631	)		1,275,159			683,960			2,371,157
Net change in unrealized appreciation (depreciation)		9,083,900			2,285,471			2,575,992			193,308
Net gain (loss) on investment		7,448,269			3,560,630			3,259,952			2,564,465
Increase (decrease) in net assets from operations		7,381,825			3,238,045			3,353,988			2,330,609
Increase (decrease) in net assets from contract transactions		5,777,255			(5,619,067	)		1,396,337			(4,303,490	)
Total increase (decrease) in net assets		13,159,080			(2,381,022	)		4,750,325			(1,972,881	)
Net Assets as of December 31, 2012	$	60,199,911		$	20,730,938		$	33,337,704		$	15,010,728

See accompanying notes.

⁽¹⁾  See footnote 1

222

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	Janus Aspen - Perkins Mid Cap Value			Janus Aspen - Worldwide			MFS® New Discovery			MFS® Total Return
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	3,208,163		$	42,819,135		$	43,511,961		$	64,112,949
Investment income:
Dividends		17,704			193,514			—			1,585,764
Investment expenses:
Mortality and expense risk and other charges		43,950			604,322			685,478			972,146
Net investment income (loss)		(26,246	)		(410,808	)		(685,478	)		613,618
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			5,888,281			—
Realized gain (loss) on investments		98,497			(1,937,863	)		1,643,970			(945,189	)
Net realized capital gains (losses) on investments		98,497			(1,937,863	)		7,532,251			(945,189	)
Net change in unrealized appreciation (depreciation)		(204,771	)		(4,189,700	)		(13,201,104	)		336,152
Net gain (loss) on investment		(106,274	)		(6,127,563	)		(5,668,853	)		(609,037	)
Increase (decrease) in net assets from operations		(132,520	)		(6,538,371	)		(6,354,331	)		4,581
Increase (decrease) in net assets from contract transactions		(257,712	)		(3,601,796	)		6,410,234			590,775
Total increase (decrease) in net assets		(390,232	)		(10,140,167	)		55,903			595,356
Net Assets as of December 31, 2011	$	2,817,931		$	32,678,968		$	43,567,864		$	64,708,305
Investment income:
Dividends		23,709			228,809			—			1,519,391
Investment expenses:
Mortality and expense risk and other charges		41,009			447,875			686,902			902,547
Net investment income (loss)		(17,300	)		(219,066	)		(686,902	)		616,844
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		178,676			—			4,588,349			—
Realized gain (loss) on investments		61,825			15,236			3,904,909			(842,971	)
Net realized capital gains (losses) on investments		240,501			15,236			8,493,258			(842,971	)
Net change in unrealized appreciation (depreciation)		29,783			5,374,275			152,574			5,771,785
Net gain (loss) on investment		270,284			5,389,511			8,645,832			4,928,814
Increase (decrease) in net assets from operations		252,984			5,170,445			7,958,930			5,545,658
Increase (decrease) in net assets from contract transactions		(244,129	)		(8,436,052	)		(8,070,833	)		(12,168,133	)
Total increase (decrease) in net assets		8,855			(3,265,607	)		(111,903	)		(6,622,475	)
Net Assets as of December 31, 2012	$	2,826,786		$	29,413,361		$	43,455,961		$	58,085,830

See accompanying notes.

⁽¹⁾  See footnote 1

223

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	Fidelity VIP Contrafund®			Fidelity VIP Equity- Income			Fidelity VIP Growth			Fidelity VIP Growth Opportunities
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	196,820,478		$	51,139,889		$	32,888,102		$	1,991,506
Investment income:
Dividends		1,492,825			1,209,908			46,884			—
Investment expenses:
Mortality and expense risk and other charges		2,798,134			771,527			531,717			27,475
Net investment income (loss)		(1,305,309	)		438,381			(484,833	)		(27,475	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			125,085			—
Realized gain (loss) on investments		(5,347,345	)		(2,636,961	)		(951,328	)		154,080
Net realized capital gains (losses) on investments		(5,347,345	)		(2,636,961	)		(826,243	)		154,080
Net change in unrealized appreciation (depreciation)		(1,602,026	)		1,656,217			526,409			(103,965	)
Net gain (loss) on investment		(6,949,371	)		(980,744	)		(299,834	)		50,115
Increase (decrease) in net assets from operations		(8,254,680	)		(542,363	)		(784,667	)		22,640
Increase (decrease) in net assets from contract transactions		(9,384,427	)		117,876			2,683,234			(319,398	)
Total increase (decrease) in net assets		(17,639,107	)		(424,487	)		1,898,567			(296,758	)
Net Assets as of December 31, 2011	$	1,791,81,371		$	50,715,402		$	34,786,669		$	1,694,748
Investment income:
Dividends		2,210,926			1,304,424			107,626			2,659
Investment expenses:
Mortality and expense risk and other charges		2,851,518			709,159			486,374			26,745
Net investment income (loss)		(640,592	)		595,265			(378,748	)		(24,086	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			3,062,727			—			—
Realized gain (loss) on investments		(6,144,513	)		(4,243,000	)		(337,491	)		163,052
Net realized capital gains (losses) on investments		(6,144,513	)		(1,180,273	)		(337,491	)		163,052
Net change in unrealized appreciation (depreciation)		32,364,691			7,538,543			5,012,011			156,697
Net gain (loss) on investment		26,220,178			6,358,270			4,674,520			319,749
Increase (decrease) in net assets from operations		25,579,586			6,953,535			4,295,772			295,663
Increase (decrease) in net assets from contract transactions		(5,988,984	)		(12,526,972	)		(9,043,207	)		(286,879	)
Total increase (decrease) in net assets		19,590,602			(5,573,437	)		(4,747,435	)		8,784
Net Assets as of December 31, 2012	$	198,771,973		$	45,141,965		$	30,039,234		$	1,703,532

See accompanying notes.

⁽¹⁾  See footnote 1

224

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	Fidelity VIP Mid Cap			Fidelity VIP Value Strategies			Fidelity VIP Balanced			Franklin Income Securities
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	230,158,537		$	61,568,664		$	30,897,515		$	50,911,633
Investment income:
Dividends		44,481			423,910			637,929			4,006,476
Investment expenses:
Mortality and expense risk and other charges		3,113,893			852,446			545,492			994,463
Net investment income (loss)		(3,069,412	)		(428,536	)		92,437			3,012,013
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		349,494			—			118,642			—
Realized gain (loss) on investments		267,632			(3,403,971	)		2,230,510			582,417
Net realized capital gains (losses) on investments		617,126			(3,403,971	)		2,349,152			582,417
Net change in unrealized appreciation (depreciation)		(24,104,953	)		(2,368,221	)		(4,905,286	)		(3,690,018	)
Net gain (loss) on investment		(23,487,827	)		(5,772,192	)		(2,556,134	)		(3,107,601	)
Increase (decrease) in net assets from operations		(26,557,239	)		(6,200,728	)		(2,463,697	)		(95,588	)
Increase (decrease) in net assets from contract transactions		(22,245,788	)		(3,869,216	)		13,178,170			29,527,786
Total increase (decrease) in net assets		(48,803,027	)		(10,069,944	)		10,714,473			29,432,198
Net Assets as of December 31, 2011	$	181,355,510		$	51,498,720		$	41,611,988		$	80,343,831
Investment income:
Dividends		714,445			221,116			913,233			5,856,404
Investment expenses:
Mortality and expense risk and other charges		2,773,601			855,685			722,740			1,300,284
Net investment income (loss)		(2,059,156	)		(634,569	)		190,493			4,556,120
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		14,737,993			—			2,466,346			—
Realized gain (loss) on investments		(1,305,489	)		(1,726,843	)		1,530,570			2,422,322
Net realized capital gains (losses) on investments		13,432,504			(1,726,843	)		3,996,916			2,422,322
Net change in unrealized appreciation (depreciation)		11,094,438			15,069,443			1,727,990			2,244,241
Net gain (loss) on investment		24,526,942			13,342,600			5,724,906			4,666,563
Increase (decrease) in net assets from operations		22,467,786			12,708,031			5,915,399			9,222,683
Increase (decrease) in net assets from contract transactions		(19,081,270	)		(291,088	)		14,583,007			(144,071	)
Total increase (decrease) in net assets		3,386,516			12,416,943			20,498,406			9,078,612
Net Assets as of December 31, 2012	$	184,742,026		$	63,915,663		$	62,110,394		$	89,422,443

See accompanying notes.

⁽¹⁾  See footnote 1

225

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	Mutual Shares Securities			Templeton Foreign Securities			Franklin Templeton VIP Founding Funds Allocation			American Funds - Asset Allocation
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	17,488,056		$	40,497,956		$	53,008,336		$	39,248,180
Investment income:
Dividends		489,654			728,612			9,737			1,368,036
Investment expenses:
Mortality and expense risk and other charges		287,953			621,680			981,631			1,032,655
Net investment income (loss)		201,701			106,932			(971,894	)		335,381
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		975,153			1,430,475			1,273,823			360,082
Net realized capital gains (losses) on investments		975,153			1,430,475			1,273,823			360,082
Net change in unrealized appreciation (depreciation)		(1,864,209	)		(7,112,893	)		(2,911,810	)		(1,670,516	)
Net gain (loss) on investment		(889,056	)		(5,682,418	)		(1,637,987	)		(1,310,434	)
Increase (decrease) in net assets from operations		(687,355	)		(5,575,486	)		(2,609,881	)		(975,053	)
Increase (decrease) in net assets from contract transactions		3,553,355			5,642,608			18,086,877			35,536,869
Total increase (decrease) in net assets		2,866,000			67,122			15,476,996			34,561,816
Net Assets as of December 31, 2011	$	20,354,056		$	40,565,078		$	68,485,332		$	73,809,996
Investment income:
Dividends		374,213			1,264,709			2,005,068			1,798,563
Investment expenses:
Mortality and expense risk and other charges		275,055			615,805			1,157,432			1,473,739
Net investment income (loss)		99,158			648,904			847,636			324,824
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		602,728			(27,764	)		2,439,052			1,173,494
Net realized capital gains (losses) on investments		602,728			(27,764	)		2,439,052			1,173,494
Net change in unrealized appreciation (depreciation)		1,591,399			5,782,865			5,938,593			9,598,348
Net gain (loss) on investment		2,194,127			5,755,101			8,377,645			10,771,842
Increase (decrease) in net assets from operations		2,293,285			6,404,005			9,225,281			11,096,666
Increase (decrease) in net assets from contract transactions		(4,899,714	)		(4,809,165	)		(2,829,776	)		14,755,704
Total increase (decrease) in net assets		(2,606,429	)		1,594,840			6,395,505			25,852,370
Net Assets as of December 31, 2012	$	17,747,627		$	42,159,918		$	74,880,837		$	99,662,366

See accompanying notes.

⁽¹⁾  See footnote 1

226

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	American Funds - Bond		American Funds - Growth			American Funds - Growth-Income			American Funds - International
	Subaccount		Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	10,999,546	$	10,710,517		$	7,014,042		$	7,988,711
Investment income:
Dividends		755,061		117,295			186,591			246,556
Investment expenses:
Mortality and expense risk and other charges		320,098		282,112			171,661			198,196
Net investment income (loss)		434,963		(164,817	)		14,930			48,360
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—		—			—			—
Realized gain (loss) on investments		154,362		275,108			57,564			(925	)
Net realized capital gains (losses) on investments		154,362		275,108			57,564			(925	)
Net change in unrealized appreciation (depreciation)		210,748		(1,555,267	)		(534,329	)		(2,293,146	)
Net gain (loss) on investment		365,110		(1,280,159	)		(476,765	)		(2,294,071	)
Increase (decrease) in net assets from operations		800,073		(1,444,976	)		(461,835	)		(2,245,711	)
Increase (decrease) in net assets from contract transactions		15,730,653		10,587,953			5,731,089			7,250,949
Total increase (decrease) in net assets		16,530,726		9,142,977			5,269,254			5,005,238
Net Assets as of December 31, 2011	$	27,530,272	$	19,853,494		$	12,283,296		$	12,993,949
Investment income:
Dividends		1,215,388		238,193			315,322			261,372
Investment expenses:
Mortality and expense risk and other charges		656,933		447,906			286,200			270,187
Net investment income (loss)		558,455		(209,713	)		29,122			(8,815	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—		—			—			—
Realized gain (loss) on investments		119,667		626,472			432,619			(64,468	)
Net realized capital gains (losses) on investments		119,667		626,472			432,619			(64,468	)
Net change in unrealized appreciation (depreciation)		568,136		3,096,467			1,740,175			2,359,006
Net gain (loss) on investment		687,803		3,722,939			2,172,794			2,294,538
Increase (decrease) in net assets from operations		1,246,258		3,513,226			2,201,916			2,285,723
Increase (decrease) in net assets from contract transactions		23,914,993		10,478,158			6,478,288			3,296,766
Total increase (decrease) in net assets		25,161,251		13,991,384			8,680,204			5,582,489
Net Assets as of December 31, 2012	$	52,691,523	$	33,844,878		$	20,963,500		$	18,576,438

See accompanying notes.

⁽¹⁾  See footnote 1

227

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	GE Investments Total Return			BlackRock Basic Value V.I.			BlackRock High Yield V.I.			BlackRock Global Allocation V.I.
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	7,816,477		$	30,418,099		$	9,521,080		$	26,976,246
Investment income:
Dividends		264,635			503,570			622,064			512,416
Investment expenses:
Mortality and expense risk and other charges		206,281			420,900			127,419			358,836
Net investment income (loss)		58,354			82,670			494,645			153,580
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			507,846
Realized gain (loss) on investments		58,011			(348,624	)		(10,819	)		(47,892	)
Net realized capital gains (losses) on investments		58,011			(348,624	)		(10,819	)		459,954
Net change in unrealized appreciation (depreciation)		(854,012	)		(787,333	)		(285,900	)		(1,805,054	)
Net gain (loss) on investment		(796,001	)		(1,135,957	)		(296,719	)		(1,345,100	)
Increase (decrease) in net assets from operations		(737,647	)		(1,053,287	)		197,926			(1,191,520	)
Increase (decrease) in net assets from contract transactions		9,714,991			(2,876,307	)		(1,602,604	)		(3,972,943	)
Total increase (decrease) in net assets		8,977,344			(3,929,594	)		(1,404,678	)		(5,164,463	)
Net Assets as of December 31, 2011	$	16,793,821		$	26,488,505		$	8,116,402		$	21,811,783
Investment income:
Dividends		282,513			449,374			568,823			310,655
Investment expenses:
Mortality and expense risk and other charges		308,944			385,980			125,256			308,309
Net investment income (loss)		(26,431	)		63,394			443,567			2,346
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			60,219
Realized gain (loss) on investments		197,786			(1,185,339	)		418,937			(19,071	)
Net realized capital gains (losses) on investments		197,786			(1,185,339	)		418,937			41,148
Net change in unrealized appreciation (depreciation)		1,670,724			4,189,376			271,860			1,742,800
Net gain (loss) on investment		1,868,510			3,004,037			690,797			1,783,948
Increase (decrease) in net assets from operations		1,842,079			3,067,431			1,134,364			1,786,294
Increase (decrease) in net assets from contract transactions		2,621,260			(4,547,639	)		70,482			(3,069,368	)
Total increase (decrease) in net assets		4,463,339			(1,480,208	)		1,204,846			(1,283,074	)
Net Assets as of December 31, 2012	$	21,257,160		$	25,008,297		$	9,321,248		$	20,528,709

See accompanying notes.

⁽¹⁾  See footnote 1

228

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	Huntington VA Dividend Capture			Huntington VA Growth			Huntington VA Income Equity			Huntington VA International Equity
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	590,931		$	319,095		$	90,986		$	1,956,123
Investment income:
Dividends		56,237			602			2,779			25,852
Investment expenses:
Mortality and expense risk and other charges		15,467			5,119			1,268			31,042
Net investment income (loss)		40,770			(4,517	)		1,511			(5,190	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		34,688			9,021			3,697			47,072
Net realized capital gains (losses) on investments		34,688			9,021			3,697			47,072
Net change in unrealized appreciation (depreciation)		(41,362	)		(26,371	)		(502	)		(396,319	)
Net gain (loss) on investment		(6,674	)		(17,350	)		3,195			(349,247	)
Increase (decrease) in net assets from operations		34,096			(21,867	)		4,706			(354,437	)
Increase (decrease) in net assets from contract transactions		921,121			88,719			2,378			481,940
Total increase (decrease) in net assets		955,217			66,852			7,084			127,503
Net Assets as of December 31, 2011	$	1,546,148		$	385,947		$	98,070		$	2,083,626
Investment income:
Dividends		115,410			1,822			7,321			32,974
Investment expenses:
Mortality and expense risk and other charges		32,488			6,525			1,985			34,311
Net investment income (loss)		82,922			(4,703	)		5,336			(1,337	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		31,148			7,841			9,556			(9,533	)
Net realized capital gains (losses) on investments		31,148			7,841			9,556			(9,533	)
Net change in unrealized appreciation (depreciation)		70,493			29,824			(4,693	)		276,833
Net gain (loss) on investment		101,641			37,665			4,863			267,300
Increase (decrease) in net assets from operations		184,563			32,962			10,199			265,963
Increase (decrease) in net assets from contract transactions		1,283,207			100,979			82,808			428,121
Total increase (decrease) in net assets		1,467,770			133,941			93,007			694,084
Net Assets as of December 31, 2012	$	3,013,918		$	519,888		$	191,077		$	2,777,710

See accompanying notes.

⁽¹⁾  See footnote 1

229

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	Huntington VA Macro 100			Huntington VA Mid Corp America			Huntington VA Mortgage Securities			Huntington VA Real Strategies
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	109,128		$	525,304		$	1,122,860		$	670,398
Investment income:
Dividends		893			3,094			22,954			1,451
Investment expenses:
Mortality and expense risk and other charges		1,928			8,157			15,818			11,760
Net investment income (loss)		(1,035	)		(5,063	)		7,136			(10,309	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Realized gain (loss) on investments		733			23,536			27,979			21,382
Net realized capital gains (losses) on investments		733			23,536			27,979			21,382
Net change in unrealized appreciation (depreciation)		(6,931	)		(50,643	)		7,916			(133,878	)
Net gain (loss) on investment		(6,198	)		(27,107	)		35,895			(112,496	)
Increase (decrease) in net assets from operations		(7,233	)		(32,170	)		43,031			(122,805	)
Increase (decrease) in net assets from contract transactions		56,273			147,746			(1,627	)		373,943
Total increase (decrease) in net assets		49,040			115,576			41,404			251,138
Net Assets as of December 31, 2011	$	158,168		$	640,880		$	1,164,264		$	921,536
Investment income:
Dividends		1,317			2,690			33,169			2,862
Investment expenses:
Mortality and expense risk and other charges		2,657			12,851			17,438			15,771
Net investment income (loss)		(1,340	)		(10,161	)		15,731			(12,909	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			54,278			—			5,963
Realized gain (loss) on investments		3,929			19,875			12,204			8,005
Net realized capital gains (losses) on investments		3,929			74,153			12,204			13,968
Net change in unrealized appreciation (depreciation)		12,423			25,293			(5,676	)		19,936
Net gain (loss) on investment		16,352			99,446			6,528			33,904
Increase (decrease) in net assets from operations		15,012			89,285			22,259			20,995
Increase (decrease) in net assets from contract transactions		53,007			337,538			184,632			276,372
Total increase (decrease) in net assets		68,019			426,823			206,891			297,367
Net Assets as of December 31, 2012	$	226,187		$	1,067,703		$	1,371,155		$	1,218,903

See accompanying notes.

⁽¹⁾  See footnote 1

230

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2011 and 2012, Except as Noted

	Huntington VA Rotating Markets			Huntington VA Situs			Huntington VA Balanced
	Subaccount			Subaccount			Subaccount
Net Assets as of January 1, 2011	$	587,623		$	1,818,355		$	17,021,932
Investment income:
Dividends		2,389			555			198,846
Investment expenses:
Mortality and expense risk and other charges		9,559			29,920			278,290
Net investment income (loss)		(7,170	)		(29,365	)		(79,444	)
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			915
Realized gain (loss) on investments		3,889			159,382			193,092
Net realized capital gains (losses) on investments		3,889			159,382			194,007
Net change in unrealized appreciation (depreciation)		28,722			(231,298	)		(160,680	)
Net gain (loss) on investment		32,611			(71,916	)		33,327
Increase (decrease) in net assets from operations		25,441			(101,281	)		(46,117	)
Increase (decrease) in net assets from contract transactions		106,986			654,660			5,001,832
Total increase (decrease) in net assets		132,427			553,379			4,955,715
Net Assets as of December 31, 2011	$	720,050		$	2,371,734		$	21,977,647
Investment income:
Dividends		15,970			—			366,516
Investment expenses:
Mortality and expense risk and other charges		13,102			42,191			335,807
Net investment income (loss)		2,868			(42,191	)		30,709
Net realized and unrealized gains (losses) on investments:
Capital gain distributions		—			—			107,846
Realized gain (loss) on investments		12,411			79,976			202,027
Net realized capital gains (losses) on investments		12,411			79,976			309,873
Net change in unrealized appreciation (depreciation)		18,249			506,484			1,439,376
Net gain (loss) on investment		30,660			586,460			1,749,249
Increase (decrease) in net assets from operations		33,528			544,269			1,779,958
Increase (decrease) in net assets from contract transactions		228,488			762,623			1,005,263
Total increase (decrease) in net assets		262,016			1,306,892			2,785,221
Net Assets as of December 31, 2012	$	982,066		$	3,678,626		$	24,762,868

See accompanying notes.

⁽¹⁾  See footnote 1

231

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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, MEMBERS^® Landmark Variable Annuity, Transamerica Freedom Variable Annuity, and MEMBERS^® Freedom Variable Annuity.

The TA AEGON U.S. Government Securities-Portfolio Asset Manager-Service Class (PAM) and the TA Profunds UltraBear-Open Allocation Method-Service Class (OAM) are included in the subaccount listing only to facilitate a contract owner purchase option.

Subaccount Investment by Mutual Fund:

Subaccount	Mutual Fund
Transamerica Series Trust	Transamerica Series Trust
TA Asset Allocation - Growth*	Transamerica Asset Allocation - Growth VP
TA Asset Allocation - Conservative*	Transamerica Asset Allocation - Conservative VP
TA Asset Allocation - Moderate*	Transamerica Asset Allocation - Moderate VP
TA Asset Allocation - Moderate Growth*	Transamerica Asset Allocation - Moderate Growth VP
TA WMC Diversified Growth*	Transamerica WMC Diversified Growth VP
TA MFS International Equity*	Transamerica MFS International Equity VP
TA Clarion Global Real Estate Securities*	Transamerica Clarion Global Real Estate Securities VP
TA Systematic Small/Mid Cap Value*	Transamerica Systematic Small/Mid Cap Value VP
TA Multi-Managed Balanced*	Transamerica Multi-Managed Balanced VP
TA Jennison Growth*	Transamerica Jennison Growth VP
TA JPMorgan Enhanced Index*	Transamerica JPMorgan Enhanced Index VP
TA AEGON High Yield Bond*	Transamerica AEGON High Yield Bond VP
TA BlackRock Large Cap Value*	Transamerica BlackRock Large Cap Value VP
TA PIMCO Total Return*	Transamerica PIMCO Total Return VP
TA Morgan Stanley Capital Growth*	Transamerica Morgan Stanley Capital Growth VP
TA AllianceBernstein Dynamic Allocation*	Transamerica AllianceBernstein Dynamic Allocation VP
TA AEGON U.S. Government Securities*	Transamerica AEGON U.S. Government Securities VP
TA T. Rowe Price Small Cap*	Transamerica T. Rowe Price Small Cap VP
TA Morgan Stanley Active International Allocation*	Transamerica Morgan Stanley Active International Allocation VP
TA Multi Managed Large Cap Core*	Transamerica Multi Managed Large Cap Core VP
TA AEGON Money Market*	Transamerica AEGON Money Market VP
TA Morgan Stanley Mid-Cap Growth*	Transamerica Morgan Stanley Mid-Cap Growth VP
Transamerica Series Turst - Service Class	Transamerica Series Turst - Service Class
TA AEGON U.S. Government Securities - PAM - SC	Transamerica AEGON U.S. Government Securities VP
TA International Moderate Growth - SC	Transamerica International Moderate Growth VP
TA Vanguard ETF Index - Balanced - SC	Transamerica Index 50 VP
TA Vanguard ETF Index - Growth - SC	Transamerica Index 75 VP
TA Efficient Markets - SC	Transamerica Efficient Markets VP
TA BlackRock Global Allocation - SC	Transamerica BlackRock Global Allocation VP
TA BlackRock Tactical Allocation - SC	Transamerica BlackRock Tactical Allocation VP
TA ProFunds UltraBear - OAM - SC	Transamerica ProFunds UltraBear VP

232

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

1. Organization and Summary of Significant Accounting Policies (continued)

Subaccount Investment by Mutual Fund: (continued)

Subaccount	Mutual Fund
Transamerica Series Turst - Service Class	Transamerica Series Turst - Service Class
TA Janus Balanced - SC	Transamerica Janus Balanced VP
TA PIMCO Tactical - Growth - SC	Transamerica PIMCO Tactical - Growth VP
TA PIMCO Tactical - Conservative - SC	Transamerica PIMCO Tactical - Conservative VP
TA PIMCO Tactical - Balanced - SC	Transamerica PIMCO Tactical - Balanced VP
TA Hanlon Income - SC	Transamerica Hanlon Income VP
TA Vanguard ETF Index - Conservative - SC	Transamerica Index 35 VP
TA Vanguard ETF Index - Aggressive Growth - SC	Transamerica Index 100 VP
TA JPMorgan Mid Cap Value - SC	Transamerica JPMorgan Mid Cap Value VP
TA PIMCO Real Return TIPS - SC	Transamerica PIMCO Real Return TIPS VP
TA Madison Balanced Allocation - SC	Transamerica Madison Balanced Allocation VP
TA Madison Diversified Income - SC	Transamerica Madison Diversified Income VP
TA Madison Conservative Allocation - SC	Transamerica Madison Conservative Allocation VP
TA AEGON Tactical Vanguard ETF - Growth - SC	Transamerica AEGON Active Asset Allocation - Moderate Growth VP
TA AEGON Tactical Vanguard ETF - Balanced - SC	Transamerica AEGON Active Asset Allocation - Moderate VP
TA AEGON Tactical Vanguard ETF - Conservative - SC	Transamerica AEGON Active Asset Allocation - Conservative VP
TA JPMorgan Core Bond - SC	Transamerica JPMorgan Core Bond VP
TA JPMorgan Tactical Allocation - SC	Transamerica JPMorgan Tactical Allocation VP
TA Legg Mason Dynamic Allocation - Balanced - SC	Transamerica Legg Mason Dynamic Allocation - Balanced VP
TA Legg Mason Dynamic Allocation - Growth - SC	Transamerica Legg Mason Dynamic Allocation - Growth VP
TA Market Participation Strategy - SC	Transamerica Market Participation Strategy VP
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Series II Shares	AIM Variable Insurance Funds (Invesco Variable Insurance Funds) - Series II Shares
Invesco Van Kampen V.I. Value Opportunities	Invesco Van Kampen V.I. Value Opportunities Fund
Invesco Van Kampen V.I. American Franchise	Invesco Van Kampen V.I. American Franchise Fund
AllianceBernstein Variable Products Series Fund, Inc. - Class B	AllianceBernstein Variable Products Series Fund, Inc. - Class B
AllianceBernstein Growth & Income	AllianceBernstein Growth & Income Portfolio
AllianceBernstein Large Cap Growth	AllianceBernstein Large Cap Growth Portfolio
AllianceBernstein Balanced Wealth Strategy	AllianceBernstein Balanced Wealth Strategy Portfolio
Janus Aspen Series - Service Shares	Janus Aspen Series - Service Shares
Janus Aspen - Enterprise	Janus Aspen - Enterprise Portfolio
Janus Aspen - Perkins Mid Cap Value	Janus Aspen - Perkins Mid Cap Value Portfolio
Janus Aspen - Worldwide	Janus Aspen - Worldwide Portfolio
MFS® Variable Insurance Trust - Service Class	MFS® Variable Insurance Trust - Service Class
MFS® New Discovery	MFS® New Discovery Series
MFS® Total Return	MFS® Total Return Series

233

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

1. Organization and Summary of Significant Accounting Policies (continued)

Subaccount Investment by Mutual Fund: (continued)

Subaccount	Mutual Fund
Fidelity® Variable Insurance Products Fund - Service Class 2	Fidelity® Variable Insurance Products Fund - Service Class 2
Fidelity VIP Contrafund®	Fidelity VIP Contrafund® Portfolio
Fidelity VIP Equity-Income	Fidelity VIP Equity-Income Portfolio
Fidelity VIP Growth	Fidelity VIP Growth Portfolio
Fidelity VIP Growth Opportunities	Fidelity VIP Growth Opportunities Portfolio
Fidelity VIP Mid Cap	Fidelity VIP Mid Cap Portfolio
Fidelity VIP Value Strategies	Fidelity VIP Value Strategies Portfolio
Fidelity VIP Balanced	Fidelity VIP Balanced Portfolio
Franklin Templeton Variable Insurance Products Trust - Class 2	Franklin Templeton Variable Insurance Products Trust - Class 2
Franklin Income Securities	Franklin Income Securities Fund
Mutual Shares Securities	Mutual Shares Securities Fund
Templeton Foreign Securities	Templeton Foreign Securities Fund
Franklin Templeton Variable Insurance Products Trust - Class 4	Franklin Templeton Variable Insurance Products Trust - Class 4
Franklin Templeton VIP Founding Funds Allocation	Franklin Templeton VIP Founding Funds Allocation Fund
American Funds Insurance Series® - Class 2	American Funds Insurance Series® - Class 2
American Funds - Asset Allocation	American Funds - Asset Allocation Fund
American Funds - Bond	American Funds - Bond Fund
American Funds - Growth	American Funds - Growth Fund
American Funds - Growth-Income	American Funds - Growth-Income Fund
American Funds - International	American Funds - International Fund
GE Investments Funds, Inc. - Class 3	GE Investments Funds, Inc. - Class 3
GE Investments Total Return	GE Investments Total Return Fund
BlackRock Variable Series Funds, Inc.	BlackRock Variable Series Funds, Inc.
BlackRock Basic Value V.I.	BlackRock Basic Value V.I. Fund
BlackRock High Yield V.I.	BlackRock High Yield V.I. Fund
BlackRock Global Allocation V.I.	BlackRock Global Allocation V.I. Fund
The Huntington Funds	The Huntington Funds
Huntington VA Dividend Capture	Huntington VA Dividend Capture Fund
Huntington VA Growth	Huntington VA Growth Fund
Huntington VA Income Equity	Huntington VA Income Equity Fund
Huntington VA International Equity	Huntington VA International Equity Fund
Huntington VA Macro 100	Huntington VA Macro 100 Fund
Huntington VA Mid Corp America	Huntington VA Mid Corp America Fund
Huntington VA Mortgage Securities	Huntington VA Mortgage Securities Fund
Huntington VA Real Strategies	Huntington VA Real Strategies Fund
Huntington VA Rotating Markets	Huntington VA Rotating Markets Fund
Huntington VA Situs	Huntington VA Situs Fund
Huntington VA Balanced	Huntington VA Balanced Fund

* Multiple share classes are combined on the financial statement pages.

234

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
TA Market Participation Strategy - SC	September 17, 2012
TA Legg Mason Dynamic Allocation - Balanced - SC	May 1, 2012
TA Legg Mason Dynamic Allocation - Growth - SC	May 1, 2012
Invesco Van Kampen V.I. American Franchise	April 27, 2012
TA PIMCO Real Return TIPS - SC	May 2, 2011
TA Madison Balanced Allocation - SC	May 2, 2011
TA Madison Diversified Income - SC	May 2, 2011
TA Madison Conservative Allocation - SC	May 2, 2011
TA AEGON Tactical Vanguard ETF - Growth - SC	May 2, 2011
TA AEGON Tactical Vanguard ETF - Balanced - SC	May 2, 2011
TA AEGON Tactical Vanguard ETF - Conservative - SC	May 2, 2011
TA JPMorgan Core Bond - SC	May 2, 2011
TA JPMorgan Tactical Allocation - SC	May 2, 2011
TA Janus Balanced - SC	November 19, 2009
TA PIMCO Tactical - Growth - SC	November 19, 2009
TA PIMCO Tactical - Conservative - SC	November 19, 2009
TA PIMCO Tactical - Balanced - SC	November 19, 2009
TA Hanlon Income - SC	November 19, 2009
TA Vanguard ETF Index - Conservative - SC	November 19, 2009
TA Vanguard ETF Index - Aggressive Growth - SC	November 19, 2009
TA JPMorgan Mid Cap Value - SC	November 19, 2009
American Funds - Asset Allocation	November 19, 2009
American Funds - Bond	November 19, 2009
American Funds - Growth	November 19, 2009
American Funds - Growth-Income	November 19, 2009
American Funds - International	November 19, 2009
GE Investments Total Return	November 19, 2009
TA BlackRock Global Allocation - SC	May 1, 2009
TA BlackRock Tactical Allocation - SC	May 1, 2009
TA ProFunds UltraBear - OAM - SC	May 1, 2009
TA Efficient Markets - SC	November 10, 2008
AllianceBernstein Balanced Wealth Strategy	November 10, 2008
Franklin Templeton VIP Founding Funds Allocation	November 10, 2008
Huntington VA Balanced	November 10, 2008
TA Vanguard ETF Index - Balanced - SC	May 1, 2008
TA Vanguard ETF Index - Growth - SC	May 1, 2008
Fidelity VIP Balanced	May 1, 2008

235

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

1. Organization and Summary of Significant Accounting Policies (continued)

The following subaccount name changes were made effective during the fiscal year ended December 31, 2012:

Subaccount	Formerly
TA PIMCO Tactical - Growth	TA Hanlon Growth
TA PIMCO Tactical - Conservative	TA Hanlon Growth and Income
TA PIMCO Tactical - Balanced	TA Hanlon Balanced
Invesco Van Kampen V.I. Value Opportunities	Invesco V.I. Basic Value

During the current year the following subaccounts were liquidated and subsequently reinvested:

Reinvested Subbacount	Liquidated Subaccount
Invesco Van Kampen V.I. American Franchise	Invesco V.I. Capital Appreciation
Huntington VA Mid Corp America	Huntington VA New Economy

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, 2012.

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

Dividend Income

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

Accounting Policy

The financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable annuity separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.

In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, authoritative guidance that clarifies and changes fair value measurement and disclosure requirements. This guidance expands existing disclosure requirements for fair value measurements and includes other amendments but does not require additional fair value measurements. This guidance is effective for annual periods beginning on or after December 15, 2011, which for the Separate Account was January 1, 2012. The adoption did not have a material impact on the financial statements.

236

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

2. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2012 were as follows:

Subaccount	Purchases		Sales
TA Asset Allocation - Growth	$	34,716,059	$	64,939,284
TA Asset Allocation - Conservative		132,516,700		120,969,545
TA Asset Allocation - Moderate		283,889,631		106,953,567
TA Asset Allocation - Moderate Growth		135,589,509		184,291,520
TA WMC Diversified Growth		8,879,245		46,377,472
TA MFS International Equity		13,087,184		13,295,693
TA Clarion Global Real Estate Securities		17,311,572		12,110,070
TA Systematic Small/Mid Cap Value		48,913,785		28,183,849
TA Multi-Managed Balanced		47,660,350		14,055,563
TA Jennison Growth		21,922,106		25,329,217
TA JPMorgan Enhanced Index		10,319,555		10,911,756
TA AEGON High Yield Bond		59,934,942		29,991,012
TA BlackRock Large Cap Value		26,617,831		56,613,440
TA PIMCO Total Return		190,513,955		69,933,554
TA Morgan Stanley Capital Growth		22,852,633		12,435,400
TA AllianceBernstein Dynamic Allocation		45,351,776		13,427,865
TA AEGON U.S. Government Securities		162,479,309		123,275,071
TA T. Rowe Price Small Cap		25,249,162		19,135,736
TA Morgan Stanley Active International Allocation		9,609,743		16,075,995
TA Multi Managed Large Cap Core		8,995,443		26,384,601
TA AEGON Money Market		131,683,117		147,102,314
TA Morgan Stanley Mid-Cap Growth		14,842,630		18,159,481
TA AEGON U.S. Government Securities - PAM - SC		22,315,358		52,559,055
TA International Moderate Growth - SC		19,050,439		13,349,732
TA Vanguard ETF Index - Balanced - SC		184,858,085		7,877,673
TA Vanguard ETF Index - Growth - SC		99,726,203		16,102,612
TA Efficient Markets - SC		6,089,850		4,082,684
TA BlackRock Global Allocation - SC		69,571,193		38,823,983
TA BlackRock Tactical Allocation - SC		174,626,841		6,595,002
TA ProFunds UltraBear - OAM - SC		53,787,699		53,234,940
TA Janus Balanced - SC		16,818,906		4,844,370
TA PIMCO Tactical - Growth - SC		8,035,217		6,299,622
TA PIMCO Tactical - Conservative - SC		9,228,574		5,890,970
TA PIMCO Tactical - Balanced - SC		16,205,091		12,079,969
TA Hanlon Income - SC		19,761,562		31,448,841
TA Vanguard ETF Index - Conservative - SC		59,197,254		9,180,981
TA Vanguard ETF Index - Aggressive Growth - SC		19,399,555		6,783,538
TA JPMorgan Mid Cap Value - SC		11,133,008		3,986,045

237

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

2. Investments (continued)

Subaccount	Purchases		Sales
TA PIMCO Real Return TIPS - SC	$	52,444,902	$	3,895,590
TA Madison Balanced Allocation - SC		16,125,752		207,006
TA Madison Diversified Income - SC		30,874,150		139,177
TA Madison Conservative Allocation - SC		23,219,222		324,986
TA AEGON Tactical Vanguard ETF - Growth - SC		49,277,781		15,088,961
TA AEGON Tactical Vanguard ETF - Balanced - SC		102,526,873		681,288
TA AEGON Tactical Vanguard ETF - Conservative - SC		55,267,647		4,100,188
TA JPMorgan Core Bond - SC		21,714,463		3,670,815
TA JPMorgan Tactical Allocation - SC		90,904,712		1,860,317
TA Legg Mason Dynamic Allocation - Balanced - SC		30,633,724		72,722
TA Legg Mason Dynamic Allocation - Growth - SC		9,628,590		70,576
TA Market Participation Strategy - SC		6,462,945		167,279
Invesco Van Kampen V.I. Value Opportunities		296,001		5,061,282
Invesco Van Kampen V.I. American Franchise		6,141,454		881,694
AllianceBernstein Growth & Income		13,539,677		7,828,886
AllianceBernstein Large Cap Growth		299,323		6,240,960
AllianceBernstein Balanced Wealth Strategy		4,900,812		3,410,464
Janus Aspen - Enterprise		430,875		4,968,200
Janus Aspen - Perkins Mid Cap Value		221,892		304,643
Janus Aspen - Worldwide		606,690		9,261,838
MFS® New Discovery		12,238,560		16,407,954
MFS® Total Return		1,879,180		13,430,501
Fidelity VIP Contrafund®		17,602,485		24,267,795
Fidelity VIP Equity-Income		4,414,315		13,283,269
Fidelity VIP Growth		128,385		9,550,317
Fidelity VIP Growth Opportunities		40,655		351,615
Fidelity VIP Mid Cap		21,840,724		28,267,229
Fidelity VIP Value Strategies		8,345,357		9,271,025
Fidelity VIP Balanced		22,509,318		5,269,480
Franklin Income Securities		21,685,925		17,273,923
Mutual Shares Securities		398,029		5,230,346
Templeton Foreign Securities		6,994,927		11,155,136
Franklin Templeton VIP Founding Funds Allocation		8,607,998		10,590,131
American Funds - Asset Allocation		23,144,452		8,063,917
American Funds - Bond		27,550,557		3,077,129
American Funds - Growth		14,109,221		3,840,723
American Funds - Growth-Income		9,501,009		2,993,606
American Funds - International		6,436,602		3,148,643
GE Investments Total Return		4,685,915		2,091,061
BlackRock Basic Value V.I.		1,153,056		5,637,300

238

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

2. Investments (continued)

Subaccount	Purchases		Sales
BlackRock High Yield V.I.	$	1,763,414	$	1,249,131
BlackRock Global Allocation V.I.		801,131		3,807,919
Huntington VA Dividend Capture		1,627,883		261,755
Huntington VA Growth		161,526		65,254
Huntington VA Income Equity		116,026		27,882
Huntington VA International Equity		842,843		416,043
Huntington VA Macro 100		73,634		21,968
Huntington VA Mid Corp America		505,217		131,728
Huntington VA Mortgage Securities		465,473		265,111
Huntington VA Real Strategies		401,665		132,234
Huntington VA Rotating Markets		346,033		114,676
Huntington VA Situs		1,109,000		388,563
Huntington VA Balanced		2,322,612		1,179,224

239

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

3. Change in Units

The changes in units outstanding were as follows:

	Year ended December 31,
	2012								2011
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA Asset Allocation - Growth		12,264,064		(33,652,608	)		(21,388,544	)		13,301,106		(39,931,813	)		(26,630,707	)
TA Asset Allocation - Conservative		44,874,267		(46,812,997	)		(1,938,730	)		54,969,974		(9,323,538	)		45,646,436
TA Asset Allocation - Moderate		168,480,109		(70,054,094	)		98,426,015			212,353,615		(75,593,101	)		136,760,514
TA Asset Allocation - Moderate Growth		55,215,532		(101,411,850	)		(46,196,318	)		72,077,948		(141,606,743	)		(69,528,795	)
TA WMC Diversified Growth		6,551,591		(41,221,963	)		(34,670,372	)		5,385,714		72,135,184			77,520,898
TA MFS International Equity		3,149,215		(5,070,822	)		(1,921,607	)		2,361,182		(2,922,512	)		(561,330	)
TA Clarion Global Real Estate Securities		3,968,020		(1,649,809	)		2,318,211			4,380,208		(1,338,303	)		3,041,905
TA Systematic Small/Mid Cap Value		3,966,337		(8,128,822	)		(4,162,485	)		7,806,884		(8,067,930	)		(261,046	)
TA Multi-Managed Balanced		2,745,971		8,059,666			10,805,637			5,942,401		3,351,412			9,293,813
TA Jennison Growth		3,700,826		(16,643,713	)		(12,942,887	)		3,722,095		(26,093,579	)		(22,371,484	)
TA JPMorgan Enhanced Index		1,713,577		(2,069,830	)		(356,253	)		1,274,709		(22,609,355	)		(21,334,646	)
TA AEGON High Yield Bond		12,858,923		1,416,742			14,275,665			6,356,725		(4,815,142	)		1,541,583
TA BlackRock Large Cap Value		9,921,696		(31,142,889	)		(21,221,193	)		9,617,419		(36,380,503	)		(26,763,084	)
TA PIMCO Total Return		81,083,111		(7,938,743	)		73,144,368			67,341,449		(33,861,675	)		33,479,774
TA Morgan Stanley Capital Growth		1,953,450		(5,318,334	)		(3,364,884	)		2,076,118		(5,076,107	)		(2,999,989	)
TA AllianceBernstein Dynamic Allocation		22,839,467		(408,857	)		22,430,610			55,068,234		6,369,121			61,437,355
TA AEGON U.S. Government Securities		169,098,236		(142,474,424	)		26,623,812			138,126,325		(120,351,211	)		17,775,114
TA T. Rowe Price Small Cap		4,607,150		(6,209,905	)		(1,602,755	)		6,426,725		(5,834,942	)		591,783
TA Morgan Stanley Active International Allocation		3,390,599		(8,450,517	)		(5,059,918	)		2,201,862		(9,519,749	)		(7,317,887	)
TA Multi Managed Large Cap Core		2,095,985		(7,699,007	)		(5,603,022	)		2,497,471		(6,575,445	)		(4,077,974	)
TA AEGON Money Market		106,491,156		(113,819,703	)		(7,328,547	)		125,939,016		(101,166,618	)		24,772,398
TA Morgan Stanley Mid-Cap Growth		4,267,481		(10,898,375	)		(6,630,894	)		3,525,538		37,221,248			40,746,786
TA AEGON U.S. Government Securities - PAM - SC		—		(24,950,616	)		(24,950,616	)		4		24,223,586			24,223,590
TA International Moderate Growth - SC		18,667,406		(15,189,244	)		3,478,162			21,986,413		(20,168,485	)		1,817,928
TA Vanguard ETF Index - Balanced - SC		138,301,378		18,886,124			157,187,502			143,344,728		9,577,435			152,922,163
TA Vanguard ETF Index - Growth - SC		48,895,022		10,433,251			59,328,273			49,567,320		2,109,725			51,677,045
TA Efficient Markets - SC		1,764,525		(1,248,591	)		515,934			8,147,483		(709,070	)		7,438,413
TA BlackRock Global Allocation - SC		40,098,213		(27,533,794	)		12,564,419			156,724,205		17,409,593			174,133,798
TA BlackRock Tactical Allocation - SC		86,217,531		26,056,116			112,273,647			51,968,378		22,455,703			74,424,081
TA ProFunds UltraBear - OAM - SC		—		(7,635,325	)		(7,635,325	)		4		192,528,488			192,528,492

240

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

3. Change in Units (continued)

	Year ended December 31,
	2012								2011
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA Janus Balanced – SC		13,986,637		(1,067,006	)		12,919,631			13,392,315		(2,831,246	)		10,561,069
TA PIMCO Tactical - Growth - SC		9,617,384		(7,440,714	)		2,176,670			8,193,168		(3,697,754	)		4,495,414
TA PIMCO Tactical - Conservative - SC		9,943,767		(6,196,889	)		3,746,878			10,786,449		(5,302,639	)		5,483,810
TA PIMCO Tactical - Balanced - SC		16,723,256		(12,240,059	)		4,483,197			13,680,553		(8,014,171	)		5,666,382
TA Hanlon Income - SC		23,515,931		(36,052,742	)		(12,536,811	)		47,145,811		(56,886,317	)		(9,740,506	)
TA Vanguard ETF Index - Conservative - SC		39,036,225		4,728,745			43,764,970			34,460,976		(1,175,399	)		33,285,577
TA Vanguard ETF Index - Aggressive Growth - SC		7,593,882		2,626,275			10,220,157			6,911,490		936,080			7,847,570
TA JPMorgan Mid Cap Value - SC		2,186,397		2,958,663			5,145,060			2,859,426		4,802,327			7,661,753
TA PIMCO Real Return TIPS - SC		34,157,373		9,618,562			43,775,935			16,962,990		5,259,363			22,222,353
TA Madison Balanced Allocation - SC		13,212,167		2,679,929			15,892,096			10,348,341		450,811			10,799,152
TA Madison Diversified Income - SC		26,729,034		2,972,499			29,701,533			11,278,531		586,994			11,865,525
TA Madison Conservative Allocation - SC		18,657,578		3,957,120			22,614,698			7,155,090		282,273			7,437,363
TA AEGON Tactical Vanguard ETF - Growth - SC		31,907,565		3,585,138			35,492,703			5,476,213		45,403,921			50,880,134
TA AEGON Tactical Vanguard ETF - Balanced - SC		82,812,624		19,508,202			102,320,826			7,143,685		3,033,144			10,176,829
TA AEGON Tactical Vanguard ETF - Conservative - SC		38,281,162		12,852,770			51,133,932			16,454,402		32,152,952			48,607,354
TA JPMorgan Core Bond - SC		11,357,057		5,255,790			16,612,847			6,633,923		6,169,382			12,803,305
TA JPMorgan Tactical Allocation - SC		74,762,695		11,730,409			86,493,104			30,117,495		3,254,530			33,372,025
TA Legg Mason Dynamic Allocation - Balanced - SC		27,020,116		3,493,568			30,513,684			—		—			—
TA Legg Mason Dynamic Allocation - Growth - SC		7,233,593		2,386,793			9,620,386			—		—			—
TA Market Participation Strategy - SC		5,874,594		536,520			6,411,114			—		—			—
Invesco Van Kampen V.I. Value Opportunities		—		(4,946,948	)		(4,946,948	)		1,450,358		(4,192,712	)		(2,742,354	)
Invesco Van Kampen V.I. American Franchise		42		5,255,248			5,255,290			—		—			—
AllianceBernstein Growth & Income		4,176,425		570,590			4,747,015			3,572,955		140,976			3,713,931
AllianceBernstein Large Cap Growth		—		(6,006,370	)		(6,006,370	)		3,123,212		(2,474,301	)		648,911
AllianceBernstein Balanced Wealth Strategy		1,361,813		(354,286	)		1,007,527			8,875,981		(202,295	)		8,673,686
Janus Aspen - Enterprise		—		(3,991,819	)		(3,991,819	)		1,076,167		(4,470,755	)		(3,394,588	)
Janus Aspen - Perkins Mid Cap Value		—		(158,807	)		(158,807	)		67		(171,761	)		(171,694	)
Janus Aspen - Worldwide		4,085		(11,838,571	)		(11,834,486	)		4,474,252		(10,783,678	)		(6,309,426	)
MFS® New Discovery		2,135,813		(7,354,449	)		(5,218,636	)		5,596,498		(1,796,342	)		3,800,156
MFS® Total Return		—		(9,236,353	)		(9,236,353	)		4,376,115		(3,943,568	)		432,547
Fidelity VIP Contrafund®		8,712,415		(13,473,302	)		(4,760,887	)		9,873,761		(17,344,774	)		(7,471,013	)
Fidelity VIP Equity-Income		—		(10,312,584	)		(10,312,584	)		4,179,469		(4,021,335	)		158,134

241

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

3. Change in Units (continued)

	Year ended December 31,
	2012								2011
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
Fidelity VIP Growth		—		(8,964,156	)		(8,964,156	)		4,622,355		(2,070,690	)		2,551,665
Fidelity VIP Growth Opportunities		20,260		(285,341	)		(265,081	)		29,684		(369,156	)		(339,472	)
Fidelity VIP Mid Cap		4,253,538		(12,421,338	)		(8,167,800	)		5,122,149		(14,985,264	)		(9,863,115	)
Fidelity VIP Value Strategies		2,405,726		(2,641,826	)		(236,100	)		2,544,916		(5,386,829	)		(2,841,913	)
Fidelity VIP Balanced		4,723,358		8,477,670			13,201,028			12,515,710		(231,963	)		12,283,747
Franklin Income Securities		9,247,864		(9,108,309	)		139,555			14,645,961		14,088,956			28,734,917
Mutual Shares Securities		—		(5,784,076	)		(5,784,076	)		3,692,666		458,826			4,151,492
Templeton Foreign Securities		3,632,667		(9,134,859	)		(5,502,192	)		6,120,246		5,161			6,125,407
Franklin Templeton VIP Founding Funds Allocation		3,873,895		(5,708,980	)		(1,835,085	)		14,529,369		(1,659,571	)		12,869,798
American Funds - Asset Allocation		6,025,737		6,049,560			12,075,297			28,119,392		3,121,786			31,241,178
American Funds - Bond		15,600,821		5,862,833			21,463,654			13,080,410		1,709,800			14,790,210
American Funds - Growth		7,182,721		1,282,702			8,465,423			9,549,798		(683,476	)		8,866,322
American Funds - Growth-Income		5,837,617		(344,887	)		5,492,730			5,684,298		(519,553	)		5,164,745
American Funds - International		4,555,976		(1,097,170	)		3,458,806			7,745,426		(622,023	)		7,123,403
GE Investments Total Return		2,121,614		249,996			2,371,610			7,843,723		1,213,220			9,056,943
BlackRock Basic Value V.I.		203,390		(3,103,658	)		(2,900,268	)		281,105		(2,176,975	)		(1,895,870	)
BlackRock High Yield V.I.		97,909		(55,355	)		42,554			124,990		(1,012,522	)		(887,532	)
BlackRock Global Allocation V.I.		75,856		(1,975,892	)		(1,900,036	)		18,768		(2,221,732	)		(2,202,964	)
Huntington VA Dividend Capture		561,445		637,224			1,198,669			523,207		401,953			925,160
Huntington VA Growth		108,453		7,487			115,940			140,819		(39,477	)		101,342
Huntington VA Income Equity		63,068		28,323			91,391			1,624		710			2,334
Huntington VA International Equity		272,813		219,875			492,688			502,452		(22,957	)		479,495
Huntington VA Macro 100		74,175		(14,322	)		59,853			87,444		(24,043	)		63,401
Huntington VA Mid Corp America		106,868		214,381			321,249			144,509		462			144,971
Huntington VA Mortgage Securities		59,847		98,104			157,951			99,223		(100,866	)		(1,643	)
Huntington VA Real Strategies		214,677		102,032			316,709			435,721		(45,520	)		390,201
Huntington VA Rotating Markets		136,974		103,976			240,950			175,811		(60,410	)		115,401
Huntington VA Situs		331,778		367,582			699,360			660,358		(39,703	)		620,655
Huntington VA Balanced		1,314,630		(583,791	)		730,839			3,708,254		70,859			3,779,113

242

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

4. Financial Highlights

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

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
TA Asset Allocation - Growth
		12/31/2012		230,370,705	$	1.43	to	$	0.87	$	328,423,844		1.25	%		1.25	%	to	2.30	%		11.20	%	to	9.85	%
		12/31/2011		251,759,249		1.28	to		0.79		323,441,498		1.10			1.25		to	2.30			(6.58	)	to	(7.81	)
		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	)
TA Asset Allocation - Conservative
		12/31/2012		512,355,557		1.55	to		1.07		776,060,764		3.02			1.25		to	2.45			6.13		to	4.62
		12/31/2011		514,294,287		1.46	to		1.02		734,628,794		2.73			1.25		to	2.45			1.39		to	(0.09	)
		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	)
TA Asset Allocation - Moderate
		12/31/2012		1,146,774,400		1.57	to		1.05		1,805,322,594		2.57			1.25		to	2.45			8.08		to	6.49
		12/31/2011		1,048,348,385		1.45	to		0.99		1,526,859,827		2.24			1.25		to	2.45			(0.65	)	to	(2.10	)
		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	)
TA Asset Allocation - Moderate Growth
		12/31/2012		1,144,436,621		1.52	to		1.00		1,775,436,274		2.33			1.25		to	2.45			9.27		to	7.72
		12/31/2011		1,190,632,939		1.39	to		0.93		1,691,025,864		1.90			1.25		to	2.45			(3.22	)	to	(4.61	)
		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	)
TA WMC Diversified Growth
		12/31/2012		234,117,031		1.19	to		0.86		243,242,120		0.29			1.25		to	2.30			11.76		to	10.31
		12/31/2011		268,787,403		1.06	to		0.78		249,347,032		0.35			1.25		to	2.30			(4.92	)	to	(6.09	)
		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	)
TA MFS International Equity
		12/31/2012		54,908,182		1.28	to		0.95		75,728,888		1.64			1.25		to	2.30			20.64		to	19.12
		12/31/2011		56,829,789		1.06	to		0.80		63,483,767		1.23			1.25		to	2.30			(11.17	)	to	(12.23	)
		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	)

243

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
TA Clarion Global Real Estate Securities
		12/31/2012		34,025,993	$	2.34	to	$	0.92	$	74,569,986		3.45	%		1.25	%	to	2.30	%		23.70	%	to	22.15	%
		12/31/2011		31,707,782		1.90	to		0.75		57,147,013		6.95			1.25		to	2.30			(6.90	)	to	(8.12	)
		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	)
TA Systematic Small/Mid Cap Value
		12/31/2012		57,175,151		2.40	to		1.26		152,383,168		0.48			1.25		to	2.30			14.94		to	13.42
		12/31/2011		61,337,636		2.09	to		1.11		148,382,477		0.14			1.25		to	2.30			(3.86	)	to	(5.04	)
		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	)
TA Multi-Managed Balanced
		12/31/2012		66,254,626		1.75	to		1.20		111,515,426		1.56			1.25		to	2.45			11.17		to	9.70
		12/31/2011		55,448,989		1.57	to		1.10		84,320,497		2.31			1.25		to	2.45			2.75		to	1.28
		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	)
TA Jennison Growth
		12/31/2012		151,229,399		1.15	to		1.07		173,255,804		0.06			1.25		to	2.30			14.33		to	12.80
		12/31/2011		164,172,286		1.01	to		0.95		163,568,682		0.11			1.25		to	2.30			(1.85	)	to	(3.00	)
		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	)
TA JPMorgan Enhanced Index
		12/31/2012		46,503,218		1.16	to		0.97		69,096,747		1.11			1.25		to	2.30			14.91		to	13.47
		12/31/2011		46,859,471		1.01	to		0.85		60,436,931		1.11			1.25		to	2.30			(0.50	)	to	(1.78	)
		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	)
TA AEGON High Yield Bond
		12/31/2012		81,456,776		1.98	to		1.35		149,611,054		5.92			1.25		to	2.30			15.91		to	14.45
		12/31/2011		67,181,111		1.71	to		1.18		107,569,359		7.11			1.25		to	2.30			3.48		to	2.19
		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	)
TA BlackRock Large Cap Value
		12/31/2012		249,338,938		1.47	to		0.86		378,374,684		1.78			1.25		to	2.30			10.34		to	8.95
		12/31/2011		270,560,131		1.33	to		0.78		373,157,218		1.72			1.25		to	2.30			1.47		to	0.16
		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	)

244

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
TA PIMCO Total Return
		12/31/2012		465,954,720	$	1.64	to	$	1.17	$	703,188,215		4.10	%		1.25	%	to	2.45	%		6.22	%	to	4.74	%
		12/31/2011		392,810,352		1.54	to		1.11		564,436,969		2.36			1.25		to	2.45			4.96		to	3.42
		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	)
TA Morgan Stanley Capital Growth
		12/31/2012		61,075,356		1.29	to		0.99		82,633,421		—			1.25		to	2.30			14.11		to	12.60
		12/31/2011		64,440,240		1.13	to		0.88		76,021,665		—			1.25		to	2.30			(6.97	)	to	(8.10	)
		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	)
TA AllianceBernstein Dynamic Allocation
		12/31/2012		116,170,141		1.53	to		1.07		170,641,314		0.77			1.25		to	2.45			4.82		to	3.25
		12/31/2011		93,739,531		1.46	to		1.04		131,393,806		0.89			1.25		to	2.45			0.56		to	(0.76	)
		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	)
TA AEGON U.S. Government Securities
		12/31/2012		185,964,575		1.48	to		1.14		267,671,938		1.55			1.25		to	2.45			3.84		to	2.34
		12/31/2011		159,340,763		1.43	to		1.11		226,421,174		2.52			1.25		to	2.45			6.28		to	4.73
		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
TA T. Rowe Price Small Cap
		12/31/2012		68,596,192		1.65	to		1.25		107,242,955		—			1.25		to	2.30			14.26		to	12.80
		12/31/2011		70,198,947		1.44	to		1.11		94,188,070		—			1.25		to	2.30			0.44		to	(0.76	)
		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	)
TA Morgan Stanley Active International Allocation
		12/31/2012		52,974,253		1.26	to		0.79		83,537,672		2.18			1.25		to	2.30			15.30		to	13.81
		12/31/2011		58,034,171		1.09	to		0.69		79,276,503		1.34			1.25		to	2.30			(15.35	)	to	(16.49	)
		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	)

245

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
TA Multi Managed Large Cap Core
		12/31/2012			69,916,409	$	1.46	to	$	1.04	$	157,622,078		0.81	%		1.25	%	to	2.30	%		15.68	%	to	14.19	%
		12/31/2011			75,519,431		1.26	to		0.91		151,342,254		0.71			1.25		to	2.30			(3.47	)	to	(4.72	)
		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	)
TA AEGON Money Market
		12/31/2012			221,233,759		1.05	to		0.90		244,869,417		0.01			1.25		to	2.45			(1.24	)	to	(2.40	)
		12/31/2011			228,562,306		1.07	to		0.93		260,288,470		0.01			1.25		to	2.45			(1.22	)	to	(2.38	)
		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	)
TA Morgan Stanley Mid-Cap Growth
		12/31/2012			75,087,329		1.24	to		1.12		92,478,590		—			1.25		to	2.30			7.73		to	6.32
		12/31/2011			81,718,223		1.15	to		1.06		92,719,840		0.27			1.25		to	2.30			(7.86	)	to	(9.01	)
		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	)
TA AEGON U.S. Government Securities - PAM - SC
		12/31/2012			46,030,399		1.36	to		1.20		60,843,793		1.55			1.25		to	2.00			3.56		to	2.80
		12/31/2011			70,981,015		1.31	to		1.17		90,639,167		3.02			1.25		to	2.00			5.97		to	5.19
		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
TA International Moderate Growth - SC
		12/31/2012			182,799,108		0.98	to		0.92		177,069,545		2.76			1.25		to	2.45			11.09		to	9.78
		12/31/2011			179,320,946		0.88	to		0.84		156,542,573		1.89			1.25		to	2.45			(8.67	)	to	(9.74	)
		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	)
TA Vanguard ETF Index - Balanced - SC
		12/31/2012			392,931,653		1.17	to		1.05		432,574,012		1.28			1.25		to	2.45			7.05		to	5.79
		12/31/2011			235,744,151		1.09	to		0.99		242,494,524		1.22			1.25		to	2.45			0.22		to	(0.95	)
		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	)

246

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
TA Vanguard ETF Index - Growth - SC
		12/31/2012			297,019,065	$	1.20	to	$	1.00	$	311,990,288		1.64	%		1.25	%	to	2.45	%		10.17	%	to	8.87	%
		12/31/2011			237,690,792		1.09	to		0.92		226,822,512		1.50			1.25		to	2.45			(2.35	)	to	(3.49	)
		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	)
TA Efficient Markets - SC
		12/31/2012			24,399,642		1.43	to		1.37		34,788,748		1.35			1.30		to	2.45			10.76		to	9.51
		12/31/2011			23,883,708		1.29	to		1.25		30,784,685		0.82			1.30		to	2.45			(3.44	)	to	(4.53	)
		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
TA BlackRock Global Allocation - SC
		12/31/2012			425,350,001		1.34	to		1.29		568,852,131		2.34			1.35		to	2.40			8.51		to	7.39
		12/31/2011			412,785,582		1.24	to		1.21		509,427,226		0.70			1.35		to	2.40			(5.11	)	to	(6.08	)
		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
TA BlackRock Tactical Allocation - SC
		12/31/2012			265,347,410		1.23	to		1.19		384,811,458		1.46			1.25		to	2.30			8.65		to	7.53
		12/31/2011			153,073,763		1.13	to		1.11		203,112,668		1.19			1.25		to	2.30			2.47		to	1.42
		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
TA ProFunds UltraBear - OAM - SC
		12/31/2012			202,770,929		0.22	to		0.22		45,300,493		—			1.30		to	2.00			(30.34	)	to	(30.82	)
		12/31/2011			210,406,254		0.32	to		0.32		67,533,202		—			1.30		to	2.00			(20.98	)	to	(21.52	)
		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	)
TA Janus Balanced - SC
		12/31/2012			40,507,497		0.98	to		0.95		39,643,729		—			1.30		to	2.30			11.05		to	9.96
		12/31/2011			27,587,866		0.88	to		0.87		24,331,453		0.16			1.30		to	2.30			(11.95	)	to	(12.81	)
		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	)
TA PIMCO Tactical - Growth - SC
		12/31/2012			21,197,325		0.87	to		0.84		18,377,329		0.52			1.30		to	2.30			(0.61	)	to	(1.58	)
		12/31/2011			19,020,655		0.87	to		0.86		16,587,264		1.46			1.30		to	2.30			(12.75	)	to	(13.60	)
		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

247

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
TA PIMCO Tactical - Conservative - SC
		12/31/2012			25,130,699	$	0.90	to	$	0.88	$	22,706,173		1.17	%		1.30	%	to	2.30	%		0.22	%	to	(0.77	)%
		12/31/2011			21,383,821		0.90	to		0.88		19,268,611		1.38			1.30		to	2.30			(8.65	)	to	(9.54	)
		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
TA PIMCO Tactical - Balanced - SC
		12/31/2012			41,675,901		0.92	to		0.90		38,453,223		1.57			1.30		to	2.30			(0.32	)	to	(1.30	)
		12/31/2011			37,192,704		0.93	to		0.91		34,435,629		1.23			1.30		to	2.30			(4.64	)	to	(5.58	)
		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
TA Hanlon Income - SC
		12/31/2012			113,465,473		1.03	to		1.00		116,557,274		2.15			1.30		to	2.30			2.13		to	1.13
		12/31/2011			126,002,284		1.01	to		0.99		126,786,336		1.46			1.30		to	2.30			1.61		to	0.62
		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
TA Vanguard ETF Index - Conservative - SC
		12/31/2012			98,767,867		1.16	to		1.12		113,935,450		1.13			1.25		to	2.45			5.29		to	4.05
		12/31/2011			55,002,897		1.10	to		1.07		60,327,184		0.73			1.25		to	2.45			1.90		to	0.71
		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	)
TA Vanguard ETF Index - Aggressive Growth - SC
		12/31/2012			24,481,663		1.26	to		1.22		30,824,852		1.05			1.25		to	2.30			15.12		to	13.93
		12/31/2011			14,261,506		1.10	to		1.07		15,628,666		0.76			1.25		to	2.30			(5.10	)	to	(6.08	)
		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
TA JPMorgan Mid Cap Value - SC
		12/31/2012			18,589,064		1.49	to		1.44		27,547,060		0.64			1.25		to	2.30			18.74		to	17.52
		12/31/2011			13,444,004		1.26	to		1.23		16,796,473		1.24			1.25		to	2.30			0.48		to	(0.55	)
		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
TA PIMCO Real Return TIPS - SC
		12/31/2012			65,998,288		1.12	to		1.10		73,864,504		0.26			1.30		to	2.30			4.93		to	3.90
		12/31/2011	(1)		22,222,353		1.07	to		1.06		23,716,796		—			1.30		to	2.30			6.78		to	6.09
TA Madison Balanced Allocation - SC
		12/31/2012			26,691,248		1.03	to		1.02		27,510,270		0.58			1.30		to	1.90			6.91		to	6.27
		12/31/2011	(1)		10,799,152		0.96	to		0.96		10,415,714		—			1.30		to	1.50			(3.53	)	to	(3.66	)
TA Madison Diversified Income - SC
		12/31/2012			41,567,058		1.06	to		1.05		43,909,777		0.09			1.30		to	1.90			4.30		to	3.68
		12/31/2011	(1)		11,865,525		1.01	to		1.01		12,020,315		—			1.30		to	1.50			1.33		to	1.20

248

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
TA Madison Conservative Allocation - SC
		12/31/2012			30,052,061	$	1.04	to	$	1.03	$	31,152,787		0.46	%		1.30	%	to	1.90	%		4.96	%	to	4.34	%
		12/31/2011	(1)		7,437,363		0.99	to		0.99		7,350,111		—			1.30		to	1.50			(1.15	)	to	(1.28	)
TA AEGON Tactical Vanguard ETF - Growth - SC
		12/31/2012			86,372,837		1.01	to		0.99		87,063,225		0.68			1.30		to	2.30			9.52		to	8.45
		12/31/2011	(1)		50,880,134		0.92	to		0.92		46,837,988		—			1.30		to	2.30			(1.57	)	to	(8.49	)
TA AEGON Tactical Vanguard ETF - Balanced - SC
		12/31/2012			112,497,655		1.03	to		1.01		115,538,931		0.17			1.30		to	2.30			6.90		to	5.85
		12/31/2011	(1)		10,176,829		0.96	to		0.96		9,782,689		—			1.30		to	2.30			(3.83	)	to	(4.45	)
TA AEGON Tactical Vanguard ETF - Conservative - SC
		12/31/2012			99,741,286		1.03	to		1.05		103,054,870		0.41			1.30		to	2.45			5.40		to	4.21
		12/31/2011	(1)		48,607,354		0.98	to		1.00		47,686,257		—			1.30		to	2.45			0.22		to	0.47
TA JPMorgan Core Bond - SC
		12/31/2012			29,416,152		1.08	to		1.06		31,761,254		2.73			1.30		to	2.30			3.40		to	2.39
		12/31/2011	(1)		12,803,305		1.05	to		1.04		13,374,908		2.95			1.30		to	2.30			4.53		to	3.85
TA JPMorgan Tactical Allocation - SC
		12/31/2012			119,865,129		1.06	to		1.04		126,580,016		0.61			1.30		to	2.30			6.08		to	5.04
		12/31/2011	(1)		33,372,025		1.00	to		0.99		33,236,169		1.18			1.30		to	2.30			(0.36	)	to	(1.00	)
TA Legg Mason Dynamic Allocation - Balanced - SC
		12/31/2012	(1)		30,513,684		1.01	to		1.01		30,816,437		—			1.30		to	2.05			—		to	—
TA Legg Mason Dynamic Allocation - Growth - SC
		12/31/2012	(1)		9,620,386		1.01	to		1.00		9,667,683		—			1.30		to	2.05			—		to	—
TA Market Participation Strategy - SC
		12/31/2012	(1)		6,411,114		0.99	to		0.99		6,347,625		—			1.30		to	2.05			—		to	—
Invesco Van Kampen V.I. Value Opportunities
		12/31/2012			18,456,538		1.03	to		0.76		18,583,118		1.18			1.25		to	2.30			16.20		to	15.00
		12/31/2011			23,403,486		0.89	to		0.67		20,339,875		0.60			1.25		to	2.30			(4.59	)	to	(5.56	)
		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	)
Invesco Van Kampen V.I. American Franchise
		12/31/2012	(1)		5,255,290		0.96	to		0.96		5,064,811		—			1.25		to	2.30			—		to	—

249

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
AllianceBernstein Growth & Income
		12/31/2012			50,717,970	$	1.19	to	$	0.91	$	60,199,911		1.33	%		1.25	%	to	2.30	%		15.79	%	to	14.59	%
		12/31/2011			45,970,955		1.02	to		0.79		47,040,831		1.06			1.25		to	2.30			4.76		to	3.69
		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	)
AllianceBernstein Large Cap Growth
		12/31/2012			21,823,660		1.04	to		0.97		20,730,938		0.03			1.25		to	2.30			15.25		to	14.06
		12/31/2011			27,830,030		0.90	to		0.85		23,111,960		0.09			1.25		to	2.30			(4.94	)	to	(5.91	)
		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	)
AllianceBernstein Balanced Wealth Strategy
		12/31/2012			23,281,994		1.44	to		1.37		33,337,704		1.94			1.50		to	2.65			11.69		to	10.43
		12/31/2011			22,274,467		1.29	to		1.24		28,587,379		2.07			1.50		to	2.65			(4.49	)	to	(5.55	)
		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
		12/31/2012			13,459,221		1.42	to		1.13		15,010,728		—			1.25		to	2.30			15.54		to	14.34
		12/31/2011			17,451,040		1.23	to		0.99		16,983,609		—			1.25		to	2.30			(2.86	)	to	(3.86	)
		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	)
Janus Aspen - Perkins Mid Cap Value
		12/31/2012			1,784,047		1.62	to		1.54		2,826,786		0.83			1.25		to	1.65			9.42		to	8.98
		12/31/2011			1,942,854		1.48	to		1.42		2,817,931		0.57			1.25		to	1.65			(4.18	)	to	(4.55	)
		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	)
Janus Aspen - Worldwide
		12/31/2012			35,879,908		0.86	to		0.81		29,413,361		0.75			1.25		to	2.30			18.37		to	17.15
		12/31/2011			47,714,394		0.73	to		0.69		32,678,968		0.47			1.25		to	2.30			(15.05	)	to	(15.92	)
		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	)

250

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
		12/31/2012		27,079,206	$	1.65	to	$	1.26	$	43,455,961		—	%		1.25	%	to	2.30	%		19.40	%	to	18.17	%
		12/31/2011		32,297,842		1.38	to		1.06		43,567,864		—			1.25		to	2.30			(11.60	)	to	(12.50	)
		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	)
MFS® Total Return
		12/31/2012		42,703,103		1.41	to		1.01		58,085,830		2.48			1.25		to	2.30			9.56		to	8.43
		12/31/2011		51,939,456		1.28	to		0.94		64,708,305		2.38			1.25		to	2.30			0.33		to	(0.69	)
		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	)
Fidelity VIP Contrafund®
		12/31/2012		129,488,515		1.72	to		0.98		198,771,973		1.13			1.25		to	2.30			14.70		to	13.52
		12/31/2011		134,249,402		1.50	to		0.86		179,181,371		0.77			1.25		to	2.30			(3.98	)	to	(4.97	)
		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	)
Fidelity VIP Equity-Income
		12/31/2012		35,156,875		1.26	to		0.88		45,141,965		2.70			1.25		to	2.30			15.60		to	14.41
		12/31/2011		45,469,459		1.09	to		0.77		50,715,402		2.27			1.25		to	2.30			(0.58	)	to	(1.60	)
		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	)
Fidelity VIP Growth
		12/31/2012		29,467,181		1.07	to		0.93		30,039,234		0.32			1.25		to	2.30			12.98		to	11.82
		12/31/2011		38,431,337		0.94	to		0.83		34,786,669		0.13			1.25		to	2.30			(1.26	)	to	(2.28	)
		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	)
Fidelity VIP Growth Opportunities
		12/31/2012		1,522,040		1.18	to		0.88		1,703,532		0.15			1.25		to	1.65			17.84		to	17.38
		12/31/2011		1,787,121		1.00	to		0.75		1,694,748		—			1.25		to	1.65			0.71		to	0.32
		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	)

251

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
		12/31/2012			82,844,979	$	2.36	to	$	1.02	$	184,742,026		0.38	%		1.25	%	to	2.30	%		13.14	%	to	11.97	%
		12/31/2011			91,012,779		2.09	to		0.91		181,355,510		0.02			1.25		to	2.30			(11.95	)	to	(12.85	)
		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	)
Fidelity VIP Value Strategies
		12/31/2012			39,762,549		1.66	to		0.98		63,915,663		0.38			1.25		to	2.30			25.49		to	24.19
		12/31/2011			39,998,649		1.32	to		0.79		51,498,720		0.72			1.25		to	2.30			(10.16	)	to	(11.08	)
		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	)
Fidelity VIP Balanced
		12/31/2012			54,793,473		1.14	to		1.08		62,110,394		1.76			1.25		to	2.45			13.40		to	12.06
		12/31/2011			41,592,445		1.01	to		0.96		41,611,988		1.64			1.25		to	2.45			(5.01	)	to	(6.12	)
		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
		12/31/2012			79,886,612		1.13	to		1.07		89,422,443		6.57			1.25		to	2.30			11.26		to	10.11
		12/31/2011			79,747,057		1.02	to		0.97		80,343,831		5.84			1.25		to	2.30			1.12		to	0.09
		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	)
Mutual Shares Securities
		12/31/2012			19,845,970		0.90	to		0.85		17,747,627		1.97			1.25		to	2.30			12.83		to	11.66
		12/31/2011			25,630,046		0.80	to		0.76		20,354,056		2.44			1.25		to	2.30			(2.26	)	to	(3.26	)
		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	)
Templeton Foreign Securities
		12/31/2012			45,335,538		0.94	to		0.89		42,159,918		3.01			1.25		to	2.30			16.77		to	15.56
		12/31/2011			50,837,730		0.81	to		0.77		40,565,078		1.69			1.25		to	2.30			(11.74	)	to	(12.64	)
		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	)

252

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
Franklin Templeton VIP Founding Funds Allocation
		12/31/2012			49,552,615	$	1.52	to	$	1.45	$	74,880,837		2.72	%		1.45	%	to	2.60	%		13.52	%	to	12.24	%
		12/31/2011			51,387,700		1.34	to		1.29		68,485,332		0.02			1.45		to	2.60			(3.07	)	to	(4.16	)
		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
		12/31/2012			78,510,292		1.27	to		1.23		99,662,366		2.06			1.60		to	2.75			14.35		to	13.07
		12/31/2011			66,434,995		1.11	to		1.09		73,809,996		2.23			1.60		to	2.75			(0.30	)	to	(1.41	)
		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
American Funds - Bond
		12/31/2012			46,830,454		1.13	to		1.09		52,691,523		3.11			1.60		to	2.75			3.71		to	2.54
		12/31/2011			25,366,800		1.09	to		1.06		27,530,272		4.00			1.60		to	2.75			4.44		to	3.27
		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
		12/31/2012			26,481,581		1.28	to		1.24		33,844,878		0.89			1.60		to	2.60			16.02		to	14.89
		12/31/2011			18,016,158		1.10	to		1.08		19,853,494		0.69			1.60		to	2.60			(5.78	)	to	(6.70	)
		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
		12/31/2012			17,004,716		1.24	to		1.20		20,963,500		1.85			1.60		to	2.60			15.62		to	14.49
		12/31/2011			11,511,986		1.07	to		1.05		12,283,296		1.80			1.60		to	2.60			(3.37	)	to	(4.31	)
		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
		12/31/2012			18,306,344		1.02	to		0.99		18,576,438		1.62			1.60		to	2.60			16.04		to	14.90
		12/31/2011			14,847,538		0.88	to		0.86		12,993,949		2.06			1.60		to	2.60			(15.32	)	to	(16.14	)
		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
		12/31/2012			18,663,866		1.14	to		1.10		21,257,160		1.46			1.50		to	2.65			10.58		to	9.34
		12/31/2011			16,292,256		1.03	to		1.01		16,793,821		2.04			1.50		to	2.65			(4.53	)	to	(5.60	)
		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

253

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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
BlackRock Basic Value V.I.
		12/31/2012		14,266,398	$	1.38	to	$	1.56	$	25,008,297		1.71	%		1.25	%	to	2.30	%		12.63	%	to	11.47	%
		12/31/2011		17,166,666		1.22	to		1.40		26,488,505		1.72			1.25		to	2.30			(3.65	)	to	(4.64	)
		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	)
BlackRock High Yield V.I.
		12/31/2012		4,567,351		2.10	to		1.78		9,321,248		6.57			1.25		to	2.30			14.23		to	13.05
		12/31/2011		4,524,797		1.83	to		1.57		8,116,402		6.96			1.25		to	2.30			2.06		to	1.01
		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	)
BlackRock Global Allocation V.I.
		12/31/2012		12,057,417		2.30	to		2.36		20,528,709		1.45			1.25		to	2.30			8.91		to	7.79
		12/31/2011		13,957,453		2.12	to		2.19		21,811,783		2.03			1.25		to	2.30			(4.68	)	to	(5.66	)
		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	)
Huntington VA Dividend Capture
		12/31/2012		2,751,810		1.10	to		1.04		3,013,918		4.83			1.30		to	2.30			10.03		to	8.95
		12/31/2011		1,553,141		1.00	to		0.96		1,546,148		4.85			1.30		to	2.30			5.70		to	4.67
		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	)
Huntington VA Growth
		12/31/2012		605,066		0.86	to		0.82		519,888		0.38			1.30		to	2.30			9.03		to	7.95
		12/31/2011		489,126		0.79	to		0.76		385,947		0.16			1.30		to	2.30			(4.29	)	to	(5.23	)
		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	)
Huntington VA Income Equity
		12/31/2012		208,268		0.92	to		0.87		191,077		4.90			1.30		to	2.30			9.30		to	8.23
		12/31/2011		116,877		0.84	to		0.81		98,070		2.87			1.30		to	2.30			5.69		to	4.66
		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	)

254

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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 International Equity
		12/31/2012		3,156,605	$	0.88	to	$	0.84	$	2,777,710		1.31	%		1.30	%	to	2.30	%		12.56	%	to	11.46	%
		12/31/2011		2,663,917		0.78	to		0.75		2,083,626		1.13			1.30		to	2.30			(12.69	)	to	(13.54	)
		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	)
Huntington VA Macro 100
		12/31/2012		253,118		0.90	to		0.85		226,187		0.68			1.30		to	2.30			9.19		to	8.11
		12/31/2011		193,265		0.82	to		0.79		158,168		0.63			1.30		to	2.30			(2.59	)	to	(3.54	)
		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	)
Huntington VA Mid Corp America
		12/31/2012		998,007		1.07	to		1.02		1,067,703		0.29			1.30		to	2.30			13.11		to	12.00
		12/31/2011		676,758		0.95	to		0.91		640,880		0.51			1.30		to	2.30			(4.02	)	to	(4.95	)
		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	)
Huntington VA Mortgage Securities
		12/31/2012		1,181,245		1.16	to		1.11		1,371,155		2.58			1.30		to	2.30			2.02		to	1.02
		12/31/2011		1,023,294		1.14	to		1.09		1,164,264		1.97			1.30		to	2.30			3.95		to	2.94
		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	)
Huntington VA Real Strategies
		12/31/2012		1,429,078		0.86	to		0.81		1,218,903		0.25			1.30		to	2.30			2.99		to	1.98
		12/31/2011		1,112,369		0.83	to		0.80		921,536		0.17			1.30		to	2.30			(10.79	)	to	(11.66	)
		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	)
Huntington VA Rotating Markets
		12/31/2012		1,065,218		0.93	to		0.88		982,066		1.73			1.30		to	2.30			5.56		to	4.52
		12/31/2011		824,268		0.88	to		0.84		720,050		0.35			1.30		to	2.30			5.47		to	4.44
		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	)

255

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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 Situs
		12/31/2012			3,178,656	$	1.16	to	$	1.10	$	3,678,626		—	%		1.30	%	to	2.30	%		21.04	%	to	19.86	%
		12/31/2011			2,479,296		0.96	to		0.92		2,371,734		0.03			1.30		to	2.30			(2.18	)	to	(3.13	)
		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	)
Huntington VA Balanced
		12/31/2012			17,649,696		1.41	to		1.34		24,762,868		1.53			1.30		to	2.45			8.09		to	6.88
		12/31/2011			16,918,857		1.30	to		1.26		21,977,647		0.99			1.30		to	2.45			0.38		to	(0.75	)
		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

⁽¹⁾  See footnote 1

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

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

*** These amounts represent the total return for the periods indicated, including changes in the value of the Mutual Fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. Effective 2012, total returns reflect a full twelve month period and total returns for subaccounts opened during the year have not been disclosed as they may not be indicative of a full year return. Effective 2011, expense ratios not in effect for the full twelve months are not reflected in the total return as they may not be indicative of a full year return.

Expense Ratio	Inception Date
2.35%	May 1, 2008
2.45%	January 21, 2008
1.95%	January 21, 2008

256

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

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	2011 Total Return Range
TA MFS International Equity	(19.80)% to (11.17)%
TA Clarion Global Real Estate Securities	(14.19)% to (6.90)%
TA AEGON High Yield Bond	(2.06)% to 3.48%
TA BlackRock Large Cap Value	(10.23)% to 1.47%
TA PIMCO Total Return	2.93% to 4.96%
TA AllianceBernstein Dynamic Allocation	(3.52)% to 0.56%
TA AEGON U.S. Government Securities	4.69% to 6.28%
TA T. Rowe Price Small Cap	(13.04)% to 0.44%
TA Morgan Stanley Active International Allocation	(22.29)% to (15.35)%
TA AEGON Money Market	(2.38)% to (0.86)%
TA Morgan Stanley Mid-Cap Growth	(19.69)% to (7.86)%
TA AEGON U.S. Government Securities - PM - SC	4.69% to 5.97%
TA Vanguard ETF Index - Balanced - SC	(4.50)% to 0.22%
TA Vanguard ETF Index - Growth - SC	(8.59)% to (2.35)%
TA BlackRock Global Allocation - SC	(10.82)% to (5.11)%
TA BlackRock Tactical Allocation - SC	(4.39)% to 2.47%
TA ProFunds UltraBear - OAM - SC	(21.52)% to (4.86)%
TA Janus Balanced - SC	(19.59)% to (11.95)%
TA Vanguard ETF Index - Conservative - SC	(1.80)% to 1.90%
TA Vanguard ETF Index - Aggressive Growth - SC	(12.56)% to (5.10)%
TA AEGON Tactical Vanguard ETF - Conservative - SC	(2.48)% to 0.48%
AllianceBernstein Balanced Wealth Strategy	(9.40)% to (4.49)%
Fidelity VIP Balanced	(11.09)% to (5.01)%
Franklin Income Securities	(5.82)% to 1.12%
American Funds - Asset Allocation	(6.77)% to (0.30)%
American Funds - Bond	2.99% to 4.44%
American Funds - Growth	(13.52)% to (5.78)%
American Funds - Growth-Income	(9.62)% to (3.37)%
GE Investments Total Return	(9.44)% to (4.53)%
Subaccount	2010 Total Return Range
TA Multi-Managed Balanced	12.42% to 22.59%
Subaccount	2009 Total Return Range
TA BlackRock Large Cap Value	11.16% to 23.06%
TA PIMCO Total Return	10.83% to 14.60%
TA Vanguard ETF Index - Balanced - SC	0.39% to 15.09%
TA Vanguard ETF Index - Growth - SC	1.01% to 21.66%
TA Efficient Markets - SC	0.48% to 16.35%
TA BlackRock Tactical Allocation - SC	0.90% to 20.85%

257

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

4. Financial Highlights (continued)

Subaccount	2008 Total Return Range
TA Asset Allocation - Conservative	(23.18)% to (2.03)%
TA Asset Allocation - Moderate	(27.86)% to (1.12)%
TA Asset Allocation - Moderate Growth	(34.44)% to (3.88)%
TA Small/Mid Cap Value	(42.06)% to (18.11)%
TA Multi-Managed Balanced	(34.10)% to (6.98)%
TA International Moderate Growth - SC	(37.75)% to (31.54)%

258

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

5. Administrative and Mortality and Expense Risk Charges

TLIC deducts a daily administrative charge equal to an annual rate of .15% of the daily net assets value of each subaccount for administrative expenses. TLIC also deducts an annual charge during the accumulation phase, 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 subaccount. Charges reflected above are those currently assessed and may be subject to change. Contract owners should see their actual policy and any related attachments to determine their specific charges.

In addition to M&E, the following subaccounts are assessed a daily charge for fund facilitation fees:

	Additional Fund
Subaccount	Facilitation Fee Assessed
TA BlackRock Global Allocation - SC		0.10	%
AllianceBernstein Balanced Wealth Strategy		0.20	%
Franklin Templeton VIP Founding Funds Allocation		0.15	%
American Funds - Asset Allocation		0.30	%
American Funds - Bond		0.30	%
American Funds - Growth		0.30	%
American Funds - Growth-Income		0.30	%
American Funds - International		0.30	%
GE Investments Total Return		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.

259

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2012

8. Fair Value Measurements and Fair Value Hierarchy

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

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

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

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

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

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

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

c) Inputs other than quoted market prices that are observable

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

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

All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon 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.

260

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 Transamerica Life Insurance Company authorizing establishment of the Separate Account. Note 1
		(b)	Resolution of the Board of Directors of Transamerica Life Insurance Company authorizing the consolidation of the Separate Account. Note 17
	(2)		Not Applicable.
	(3)	(a)	Amended and restated Principal Underwriting Agreement by and between Transamerica Life Insurance Company, on its own behalf and on the behalf of the Separate Account, and Transamerica Capital, Inc. Note 17
		(b)	Form of Broker/Dealer and Sales Agreement. Note 1
	(4)	(a)	Form of Policy. Note 2
		(b)	Form of Policy Rider (Additional Death Distribution). Note 3
		(c)	Form of Policy Endorsement (Initial Payment Guarantee). Note 3
		(d)	Form of Policy Rider (GPS). Note 4
		(e)	Form of Policy Rider (Return of Premium). Note 5
		(f)	Form of Policy Rider (Double Enhanced). Note 6
		(g)	Form of Policy Rider (Annual Step-Up). Note 7
		(h)	Form of Policy Rider (ADD +). Note 4
		(i)	Form of Policy Rider (C-Share Rider). Note 8
		(j)	Form of Policy Rider (Retirement Income Choice ). Note 9
		(k)	Form of Policy Rider (Retirement Income Choice – Double Withdrawal Base Benefit). Note 10
		(l)	Form of Pol.icy Rider (Retirement Income Choice 1.2). Note 11
		(m)	Form of Policy Rider (Retirement Income Choice 1.4). Note 12
		(n)	Form of Policy Rider (Income Link). Note 13
		(o)	Form of Policy Rider (Retirement Income Max). Note 14
		(p)	Form of Policy Rider (Retirement Income Choice 1.6). Note 17
		(q)	Form of Policy. Note 17

(5)	(a)	Form of Application. Note 15
	(b)	Form of Application. Note 17
(6)	(a)	Articles of Incorporation of Transamerica Life Insurance Company. Note 16
	(b)	By-Laws of Transamerica Life Insurance Company. Note 16
(7)	Reinsurance Agreements. Not applicable.
(8)	(a)	Participation Agreement (TST). Note 17
(9)		Opinion and Consent of Counsel. Note 17
(10)		Consent of Independent Registered Public Accounting Firm. Note 17
(11)		Not applicable.
(12)		Not applicable.
(13)		Powers of Attorney. (Brenda K. Clancy, Craig D. Vermie, Arthur C. Schneider, C. Michiel van Katwijk, Eric J. Martin, Mark W. Mullin) Note 17

Note 1.	Incorporated herein by reference to Initial Filing to form N-4 Registration Statement (File No. 333-185573) filed on December 20, 2012.
Note 2	Incorporated herein by reference to Pre-Effective Amendment No. 1 to form N-4 Registration Statement (File No. 333-109580) filed on December 30, 2003.
Note 3.	Incorporated herein by reference to Post-Effective Amendment No. 25 to form N-4 Registration Statement (File No. 033-33085) filed on April 27, 2001.
Note 4.	Incorporated herein by reference to Post-Effective Amendment No. 19 to form N-4 Registration Statement (File No. 333-83957) filed on April 27, 2005.
Note 5.	Incorporated herein by reference to Initial Filing on form N-4 Registration Statement (File No. 333-110049) filed on October 29, 2003.
Note 6.	Incorporated herein by reference to Post-Effective Amendment No. 2 to form N-4 Registration Statement (File No. 333-131987) filed on September 21, 2007.
Note 7.	Incorporated herein by reference to Initial Filing to form N-4 Registration Statement (File No. 333-131987) filed on February 22, 2006.
Note 8.	Incorporated herein by reference to Pre-Effective Amendment No. 1 to form Registration Statement (File No. 333-131987) filed on July 19, 2006.
Note 9.	Incorporated herein by reference to Post-Effective Amendment No. 22 to form N-4 Registration Statement (File No. 333-83957) filed on September 21, 2007.
Note 10.	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 11.	Incorporated herein by reference to Post-Effective Amendment No. 26 to form N-4 Registration Statement (File No. 333-83957) filed on April 30, 2009.

Note 12.	Incorporated herein by reference to Post-Effective Amendment No. 9 to form N-4 Registration Statement (File No. 333-142762) filed on August 31, 2009.
Note 13.	Incorporated herein by reference to Post-Effective Amendment No. 30 to form N-4 Registration Statement (File No. 333-83957) filed on August 6, 2010.
Note 14.	Incorporated herein by reference to Post-Effective Amendment No. 32 to form N-4 Registration Statement (File No. 333-83957) filed on April 28, 2011.
Note 15.	Incorporated herein by reference to Pre-Effective Amendment No. 2 to form N-4 Registration Statement (File No. 333-149336) filed on August 7, 2008.
Note 16.	Incorporated herein by reference to Initial Filing to form N-4 Registration Statement (File No. 333-169445) filed on September 17, 2010.
Note 17.	Filed herewith.

Item 25. Directors and Officers of the Depositor (Transamerica Life Insurance Company)

Name and Business Address	Principal Positions and Offices with Depositor
Brenda K. Clancy 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001	Director and President
Mark W. Mullin 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001	Director and Chairman of the Board
C. Michiel van Katwijk 100 Light Street Baltimore, MD 21202	Director, Senior Vice President and Chief Financial Officer
Craig D. Vermie 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001	Director, Senior Vice President, Secretary and General Counsel
Arthur C. Schneider 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001	Director, Senior Vice President and Chief Tax Officer
Eric J. Martin 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001	Senior Vice President and Corporate Controller

Item 26. Persons Controlled by or under Common Control with the Depositor or Registrant.

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
25 East 38th Street, LLC	Delaware	Sole Member: Yarra Rapids, LLC	Real estate investments
239 West 20th Street, LLC	Delaware	Sole Member: Yarra Rapids, LLC	Real estate investments
313 East 95th Street, LLC	Delaware	Sole Member: Yarra Rapids, LLC	Real estate investments
319 East 95th Street, LLC	Delaware	Sole Member: Yarra Rapids, LLC	Real estate investments
AEGON Alliances, Inc.	Virginia	100% Commonwealth General Corporation	Insurance company marketing support
AEGON Asset Management Services, Inc.	Delaware	100% AUSA Holding Company	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 174,588,712 shares of Common Stock; 1,500 shares of Series II Preferred stock; 2 shares of Series III 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	Partners: AEGON USA Realty Advisors, LLC (99%); AEGON-CMF GP, LLC (1%)	Investment in mortgages
AEGON Direct & Affinity Marketing Services Australia Pty Limited	Australia	100% Transamerica Direct Marketing Asia Pacific Pty Ltd.	Marketing/operations company
AEGON Direct & Affinity Marketing Services Co., Ltd.	Japan	100% AEGON DMS Holding B.V.	Marketing company
AEGON Direct & Affinity Marketing Services Limited	Hong Kong	100% AEGON DMS Holding B.V.	Provide consulting services ancillary to the marketing of insurance products overseas.
AEGON Direct & Affinity Marketing Services (Thailand) Limited	Thailand	97% Transamerica International Direct Marketing Consultants, LLC; remaining 3% held by various AEGON employees	Marketing of insurance products in Thailand
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 Europe Ltd.	United Kingdom	100% Cornerstone International Holdings, Ltd.	Marketing
AEGON Direct Marketing Services Insurance Broker (HK) Limited	Hong Kong	100% AEGON Direct Marketing Services Hong Kong Limited	Brokerage company

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AEGON Direct Marketing Services International, Inc.	Maryland	100% AUSA Holding Company	Marketing arm for sale of mass marketed insurance coverage
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.
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 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 (86.0457%) ; Monumental Life Insurance Company (13.9543%)	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 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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AEGON USA Realty Advisors of California, Inc.	Iowa	100% AEGON USA Realty Advisors, Inc.	Investments
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
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
AMTAX HOLDINGS 308, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 347, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 388, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 483, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 546, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 559, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 561, LLC	Ohio	TAHP Fund VII, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	affordable housing

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AMTAX HOLDINGS 567, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 588, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 613, LLC	Ohio	Garnet LIHTC Fund VII, LLC - 99% member; Cupples State LIHTC Investors, LLC - 1% member; TAH Pentagon Funds, LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 639, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 649, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 672, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	affordable housing
AMTAX HOLDINGS 713, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	affordable housing
ARC Reinsurance Corporation	Hawaii	100% Transamerica Corporation	Property & Casualty Insurance
ARV Pacific Villas, A California Limited Partnership	California	Partners: Transamerica Affordable Housing - 0.05% General Partner; non-AEGON affiliate, Jamboree Housing Corporation - 0.05% Managing General Partner; Transamerica Life Insurance Company - 67% Limited Partner; Monumental Life Insurance Company - 32% Limited Partner	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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AXA Equitable AgriFinance, LLC	Delaware	Members: AEGON USA Realty Advisors, LLC (50%); AXA Equitable Life Insurance Company, a non-affiliate of AEGON (50%)	Agriculturally-based real estate advisory services
Bay Area Community Investments I, LP	California	Partners: 69.995% Transamerica Life Insurance Company; 29.995% Monumental Life Insurance Company; 0.01% Transamerica Affordable Housing, Inc.	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 Life Insurance Company	Canada	100% Transamerica Life Canada	Insurance company
CBC Insurance Revenue Securitization, LLC	Delaware	100% Clark Consulting, LLC	Special purpose
Cedar Funding, Ltd.	Cayman Islands	100% Transamerica Life Insurance Company	Investments
Clark/Bardes (Bermuda) Ltd.	Bermuda	100% Clark Consulting, LLC	Insurance agency
Clark, LLC	Delaware	Sole Member - Diversified Retirement Corporation	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% AEGONUSA, LLC	Holding company
Consumer Membership Services Canada Inc.	Canada	100% AEGON Canada ULC	Marketing of credit card protection membership services in Canada
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 Company	Credit insurance
CRI Canada 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 Investment Advisors, Inc.	Delaware	100% Diversified Retirement Corporation	Investment advisor
Diversified Investors Securities Corp.	Delaware	100% Diversified Investment Advisors, Inc.	Broker-Dealer

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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
Fong LCS Associates, LLC	Delaware	100% Investors Warranty of America, Inc.	Investments
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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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
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 Community Investments XXXI, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXIII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet Community Investments XXXIV, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXV, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXVI, 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
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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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

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 - Garnet Community Investments XX, LLC	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., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XXIV, LLC	Delaware	Members: Garnet Community Investments XXIV, LLC (0.01% as Managing Member); Transamerica Life Insurance Company (21.26%); non-affiliates of AEGON: New York Life Insurance Company (25.51%), New York Life Insurance and Annuity Corporation (21.3%) and Principal Life Insurance Company (31.49%)	Investments
Garnet LIHTC Fund XXV, LLC	Delaware	Members: Garnet Community Investment XXV, LLC (0.01%); Garnet LIHTC Fund XXVIII LLC (1%); non-affiliates of AEGON: Mt. Hamilton Fund, LLC (97.99%); Google Affordable Housing I LLC (1%)	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	Members: Garnet Community Investments XXVII, LLC (0.01%); Transamerica Life Insurance Company (16.7045%); non-affiliates of AEGON: Aetna Life Insurance Company (30.2856%); New York Life Insurance Company (22.7142%); ProAssurance Casualty Company (3.6343%); ProAssurance Indemnity Company (8.4800%); State Street Brank and Trust Company (18.1714%)	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund XXVIII, LLC	Delaware	Members: Garnet Community Investments XXVIII LLC (0.01%); non-affiliates of AEGON: USAA Casualty Insurance Company (17.998%); USAA General Indemnity Company (19.998%); USAA Life Insurance Company (3.999%); United Services Automobile Association (57.994%)	Real estate investments
Garnet LIHTC Fund XXIX, LLC	Delaware	Members: Garnet Community Investments XXIX, LLC (.01%); non-affiliate of AEGON: Bank of America, N.A. (99.99%)	Investments
Garnet LIHTC Fund XXX, LLC	Delaware	Garnet Community Investments XXX, LLC (0.01%); non-affiliate of AEGON, New York Life Insurance Company (99.99%)	Investments
Garnet LIHTC Fund XXXI, LLC	Delaware	Members: Garnet Community Investments XXXI, LLC (0.1%); non-affiliates of AEGON: Thunderbolt Peak Fund, LLC (98.99%); Google Affordable Housing I, LLC (1%)	Investments
Garnet LIHTC Fund XXXII, LLC	Delaware	Members: Garnet Community Investment XXXII, LLC (0.01%); non-affiliates of AEGON: New York Life Insurance Company (50.38%); New York Life Insurance Annuity Corporation (49.61%)	Investments
Garnet LIHTC Fund XXXIII, LLC	Delaware	Members: Garnet Community Investment XXXIII, LLC (0.01%); non-affiliate of AEGON, NorLease, Inc. (99.99%)	Investments
Garnet LIHTC Fund XXXIV, LLC	Delaware	Members: non-AEGON affiliate, U.S. Bancorp Community Development Corporation (99.99%); Garnet Community Investments XXXIV, LLC (.01%)	Investments
Garnet LIHTC Fund XXXV, LLC	Delaware	Members: Garnet Community Investment XXXV, LLC (0.01%); non-affiliate of AEGON, Microsoft Corporation (99.99%)	Investments
Garnet LIHTC Fund XXXVI, LLC	Delaware	Sole Member - Garnet Community Investments XXXVI, LLC	Investments
Garnet LIHTC Fund XXXVII, LLC	Delaware	Sole Member - Garnet Community Investments XXXIII, LLC	Investments
Global Preferred Re Limited	Bermuda	100% AEGON USA, LLC	Reinsurance

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Hadley Apartments, LLC	Massachusetts	Members: Garnet LIHTC Fund XV, LLC (99.99% investor member); Transamerica Affordable Housing, Inc. (non-owner manager); Main South Community Development Corporation , a non-affiliate of AEGON (.01% special member)	affordable housing
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
Imani Fe, LP	California	Partners: Garnet LIHTC Fund XIV, LL (99.99% investor limited partner); Transamerica Affordable Housing, Inc. (non-owner manager); non-affiliates of AEGON: ABS Imani Fe, LLC (.0034% class A limited partner); Central Valley Coalition for Affordable Housing (.0033% co-managing general partner); Grant Housing and Economic Development Corporation (.0033% managing partner)	affordable housing
Intersecurities Insurance Agency, Inc.	California	100% Western Reserve Life Assurance Co. of Ohio	Insurance agency
Interstate North Office Park GP, LLC	Delaware	100% Interstate North Office Park Owner, LLC	Investments
Interstate North Office Park, LP	Delaware	100% Interstate North Office Park Owner, LLC	Investments
Interstate North Office Park Owner, LLC	Delaware	100% Investors Warranty of America, Inc.	Investments
Interstate North Office Park (Land) GP, LLC	Delaware	100% Interstate North Office Park Owner, LLC	Investments
Interstate North Office Park (Land) LP	Delaware	100% Interstate North Office Park Owner, LLC	Investments
Investors Warranty of America, Inc.	Iowa	100% AUSA Holding Company	Leases business equipment
IWA Commercial Venture, LLC	Georgia	Members: Investors Warranty of America, Inc. (99.9%); non-AEGON affiliate, Rooker/Commerce 962, LLC	Maintain property tax abatement
LCS Associates, LLC	Delaware	100% Investors Warranty of America, Inc.	Investments
Legacy General Insurance Company	Canada	100% AEGON Canada ULC	Insurance company

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Life Investors Alliance LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Purchase, own, and hold the equity interest of other entities
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 Company	Trust company
McDonald Corporate Tax Credit Fund IV Limited Partnership	Delaware	Partners: Monumental Life Insurance Company - 99.9% General Partner; TAH-McD IV, LLC - 0.10% General Partner	Tax credit fund
MLIC Re I, Inc.	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company
Money Services, Inc.	Delaware	100% AUSA Holding Company	Provides financial counseling for employees and agents of affiliated companies
Monumental Financial Services, Inc.	Maryland	100% AEGON USA, LLC	DBA in the State of West Viriginia for United Financial Services, Inc.
Monumental General Administrators, Inc.	Maryland	100% AUSA Holding Company	Provides management services to unaffiliated third party administrator
Monumental Life Insurance Company	Iowa	87.72% Commonwealth General Corporation; 12.28% AEGON USA, LLC	Insurance Company
nVISION Financial, Inc.	Iowa	100% AUSA Holding Company	Special-purpose subsidiary
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
Pearl Holdings, Inc. I	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
Pearl Holdings, Inc. II	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
Peoples Benefit Services, LLC	Pennsylvania	Sole Member - Stonebridge Life Insurance Company	Special-purpose subsidiary
Pine Falls Re, Inc.	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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.
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
RCC North America LLC	Delaware	100% AEGON USA, LLC	Real estate
Real Estate Alternatives Portfolio 1 LLC	Delaware	Members: Transamerica Life Insurance Company (90.96%); Monumental Life Insurance Company (6.30%); 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
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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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% AEGON Canada ULC	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	Dormant
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
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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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 I, LLC	Delaware	Sole Member - Monumental Life Insurance Company	Real estate investments
TAHP Fund II, 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
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
TLIC Riverwood Reinsurance, Inc.	Iowa	100% Transamerica Life Insurance Company	Limited purpose subsidiary life insurance company
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
Tradition Land Company, LLC	Iowa	Sole Member: Investors Warranty of America, Inc.	Aquirer of Core Florida mortgage loans from Investors Warranty and holder of foreclosed read estate.
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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Affinity Marketing 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
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
Transamerica Agency Network, Inc.	Iowa	100% AUSA Holding Company	Special purpose subsidiary
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 Company	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 Private Limited	India	99.95% AEGON DMS Holding B.V.; non-AEGON affiliate, Keshav Sunderraj owns .05%	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.	Delaware	1,000 shares owned by AUSA Holding Company; 209 shares owned by Transamerica International Holdings, Inc.; 729 shares owned by AEGON Asset Management Services, Inc.	Broker/Dealer
Transamerica Financial Life Insurance Company	New York	87.40% AEGON USA, LLC; 12.60% Transamerica Life Insurance Company	Insurance

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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 Management, LLC	Delaware	Sole Member - AEGON USA Asset Management Holding, LLC	Investment advisor
Transamerica Leasing Holdings, Inc.	Delaware	100% Transamerica Finance Corporation	Holding company
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 (Bermuda) Ltd.	Bermuda	100% Transamerica Life Insurance Company	Long-term life insurer in Bermuda - will primarily write fixed universal life and term insurance
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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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% Monumental Life Insurance Company	Realty limited liability company
Transamerica Realty Investment Properties LLC	Delaware	100% Monumental Life Insurance Company	Realty limited liability company
Transamerica Realty Services, LLC	Delaware	AUSA Holding Company - sole Member	Real estate investments
Transamerica Resources, Inc.	Maryland	100% Monumental General Administrators, Inc.	To provide education and information regarding retirement and economic issues.
Transamerica Retirement Solutions Corporation	Delaware	100% AUSA Holding Company	Registered investment advisor
Transamerica Small Business Capital, Inc.	Delaware	100% TCFC Asset Holdings, Inc.	Holding company
Transamerica 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.
Transamerica Travel and Conference Services, LLC	Iowa	100% Money Services, Inc.	Travel and conference services
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 Company	Third party administrator
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 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 Canada Inc.	Canada	100% World Financial Group Holding Company of Canada Inc.	Marketing
World Financial Group Holding Company of Canada Inc.	Canada	100% Transamerica International Holdings, Inc.	Holding company

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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
Yarra Rapids, LLC	Delaware	Yarra Rapids Management, LLC is the non-owner Manager	Real estate investments
Yarra Rapids Management, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Company organized for the intention of real estate investments but no business at this time
Zahorik Company, Inc.	California	100% AUSA Holding Company	Inactive
Zero Beta Fund, LLC	Delaware	Members are: Transamerica Life Insurance Company (82.35%); Monumental Life Insurance Company (16.16%); Transamerica Financial Life Insurance Company (1.49%) Manager: AEGON USA Investment Management LLC	Aggregating vehicle formed to hold various fund investments.

Item 27. Number of Contract Owners

As of February 28, 2013, there were 7,776 Contract owners.

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 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 FF, Separate Account VA HH, 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 QNY, Separate Account VA QQ, 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, Transamerica Investors, Inc., Transamerica Partners Funds Group, Transamerica Partners Funds Group II, Transamerica Partners Portfolios, and Transamerica Asset Allocation Variable Funds.

(b) Directors and Officers of Transamerica Capital, Inc.:

Name	Principal Business Address	Position and Offices with Underwriter
Thomas A. Swank	(1)	Director
Michael W. Brandsma	(2)	Director, President and Chief Financial Officer
David W. Hopewell	(1)	Director
David R. Paulsen	(2)	Director, Chief Executive Officer and Chief Sales Officer
Blake S. Bostwick	(2)	Chief Marketing Officer and Chief Operations Officer
Courtney John	(2)	Chief Compliance Officer and Vice President
Erin K. Burke	(1)	Assistant Secretary
Amy Angle	(3)	Assistant Vice President
Elizabeth Belanger	(4)	Assistant Vice President
Margaret A. Cullem-Fiore	(5)	Assistant Vice President
Dennis P. Gallagher	(5)	Assistant Vice President
Christy Post-Rissin	(5)	Assistant Vice President
Brenda L. Smith	(5)	Assistant Vice President
Darin D. Smith	(1)	Assistant Vice President
Lisa Wachendorf	(1)	Assistant Vice President
Arthur D. Woods	(5)	Assistant Vice President
Carrie N. Powicki	(2)	Secretary
Karen R. Wright	(3)	Treasurer
Karen D. Heburn	(5)	Vice President
Wesley J. Hodgson	(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) 100 Light Street, Floor B1, Baltimore, MD 21202

(4) 440 Mamaroneck Avenue, Harrison, NY 10528

(5) 570 Carillon Parkway, St. Petersburg, FL 33716

(c) Compensation to Principal Underwriter:

Name of Principal Underwriter	Net Underwriting Discounts and Commissions(1)		Compensation on Redemption		Brokerage Commissions		Compensation
Transamerica Capital, Inc.	$	12,058,273		0		0		0

⁽¹⁾  Fiscal Year 2012

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 Life Insurance Company at 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499-0001.

Item 31. Management Services.

All management Contracts 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 Contract 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 Life Insurance Company at the address or phone number listed in the Prospectus.

(d) Transamerica Life Insurance Company hereby represents that the fees and charges deducted under the contracts, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Transamerica Life Insurance Company.

SECTION 403(B) REPRESENTATIONS

Transamerica Life Insurance Company represents that it is relying on a no-action letter dated November 28, 1988, to the American Council of Life Insurance (Ref. No. IP-6-88), regarding Sections 22(e), 27(c)(1), and 27(d) of the Investment Company Act of 1940, in connection with redeemability restrictions on Section 403(b) Policies, and that paragraphs numbered (1) through (4) of that letter will be complied with.

TEXAS ORP REPRESENTATION

The Registrant intends to offer policies to participants in the Texas Option Retirement Program. In connection with that offering, the Registrant is relying on Rule 6c-7 under the Investment Company Act of 1940 and is complying with, or shall comply with, paragraphs (a) – (d) of that Rule.

SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has caused this Registration Statement to be signed on its behalf, in the City of Cedar Rapids and State of Iowa, on this 15^th day of April, 2013.

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 duties indicated.

Signatures	Title	Date
	Director and Chairman of the Board	, 2013
Mark W. Mullin*
	Director, Senior Vice President, Secretary and General Counsel	, 2013
Craig D. Vermie*
	Director, Chief Tax Officer and Senior Vice President	, 2013
Arthur C. Schneider*
	Senior Vice President and Corporate Controller	, 2013
Eric J. Martin*
	Director and President	, 2013
Brenda K. Clancy*
	Director, Senior Vice President and Chief Financial Officer	, 2013
C. Michiel van Katwijk*
/s/ Darin D. Smith	Assistant Secretary and Managing Assistant General Counsel	April 15, 2013
Darin D. Smith

* By: Darin D. Smith – Attorney-in-Fact pursuant to Powers of Attorney filed previously and herewith.

Registration No. 333-                        

811-06032

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

EXHIBITS

TO

FORM N-4

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

FOR

TRANSAMERICA PRINCIPIUM II VARIABLE ANNUITY

EXHIBIT INDEX

Exhibit No.	Description of Exhibit	Page No.*
1(b)	Resolution of Board of Directors of Transamerica Life Insurance Company Authorizing Separate Account Consolidation
3(a)	Amended and Restated Principal Underwriting Agreement
4(p)	Form of Policy Rider (Retirement Income Choice 1.6)
4(q)	Form of Policy
5(b)	Form of Application
8(a)	Participation Agreement (TST)
9	Opinion and Consent of Counsel
10	Consent of Independent Registered Public Accounting Firm
13	Powers of Attorney

* Page numbers included only in manually executed original.