Transamerica Advisory Annuity

N-4/A 1 d764323dn4a.htm TRANSAMERICA ADVISORY ANNUITY Transamerica Advisory Annuity

As filed with the Securities and Exchange Commission on December 19, 2019

Registration No. 333- 233812

811- 06032

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-4

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

Pre-Effective Amendment No. 1

Post-Effective Amendment No.

and

REGISTRATION STATEMENT

UNDER

THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 309

SEPARATE ACCOUNT VA B

(Exact Name of Registrant)

TRANSAMERICA LIFE INSURANCE COMPANY

(Name of Depositor)

4333 Edgewood Road, NE

Cedar Rapids, IA 52499

(Address of Depositor’s Principal Executive Offices)

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

Brian Stallworth, Esq.

Transamerica Life Insurance Company

c/o Office of the General Counsel

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.

The information in this Prospectus is not complete and may be changed. This Prospectus is contained in a registration statement filed with the Securities and Exchange Commission and we may not sell these securities until that registration statement is effective. This Prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

TRANSAMERICA ADVISORY ANNUITY

Transamerica Life Insurance Company
Separate Account VA B (EST. 1/19/1990)
4333 Edgewood Road NE
Cedar Rapids, Iowa 52499-0001
(800)525-6205
www.transamerica.com

Transamerica Financial Life Insurance Company
Separate Account VA BNY (EST. 9/27/1994)
Administrative Office
4333 Edgewood Road NE
Cedar Rapids, Iowa 52499-0001
(800)525-6205
www.transamerica.com

This prospectus describes information You should know before You purchase a Transamerica Advisory Annuity. The prospectus describes a contract between each Owner and joint Owner (“You”) and Transamerica Life Insurance Company or Transamerica Financial Life Insurance Company (“us,” “we,” “our” or “Company”). This is an individual, deferred, flexible premium variable annuity. This variable annuity allows You to allocate Your premium payments among the underlying fund portfolios.

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. You can also contact us to get a Statement of Additional Information (“SAI”) free of charge. The SAI contains more information about this policy. A registration statement, including the SAI, has been filed with the Securities and Exchange Commission (“SEC”) and the SAI is incorporated herein by reference. The prospectus and SAI can also be obtained from the SEC's website (www.sec.gov). The table of contents of the SAI is included at the end of this prospectus. The Securities and Exchange Commission has not approved or disapproved these securities, or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.

This variable annuity may not be suitable for everyone. This variable annuity may not be appropriate for people who do not have a long investment time horizon and is not appropriate for people who intend to engage in market timing or other frequent (disruptive) trading. You will get no additional tax advantage from this variable annuity if You are investing in a variable annuity through a tax-advantaged retirement plan (such as a 401(k) plan or Individual Retirement Account (“IRA”)). This prospectus is not intended to provide tax, accounting or legal advice.

We are not an investment adviser nor are we registered as such with the SEC or any state securities regulatory authority. We are not acting in any fiduciary capacity with respect to Your policy nor are we acting in any capacity on behalf of any tax-advantaged retirement plan. This information does not constitute personalized investment advice or financial planning advice.

We want to let You know that beginning January 1, 2021, we will no longer mail copies of shareholder reports for funds in Your portfolio. This change is permitted by regulations adopted by the Securities and Exchange Commission. Instead, the reports will be made available on our website. We’ll let You know by mail each time a report is posted. The notification will have a URL for accessing the report.

If You’ve already elected to receive documents from us electronically, You’re not affected by this change. You’re already receiving an email with a link to the reports so there’s nothing You need to do.

You do have the option of continuing to receive paper copies of all future shareholder reports free of charge. If You’d like this option, give us a call at (800)525-6205, Monday through Thursday 8 - 6:30, or Friday 8 - 5:30 ET.

Prospectus Date: December 20, 2019
Statement of Additional Information Date: December 20, 2019

The Subaccounts currently available under this policy invest in the following underlying fund portfolios:

TABLE OF CONTENTS

GLOSSARY OF TERMS	1
INTRODUCTION	2
FEE TABLE AND EXPENSE EXAMPLES	3
THE ANNUITY	5
PURCHASE	5
Policy Issue Requirements	5
Premium Payments	5
Policy Value	6
INVESTMENT OPTIONS	7
Addition, Deletion, or Substitution of Investment Options	7
Transfers	8
Market Timing and Disruptive Trading	8
EXPENSES	10
Mortality and Expense Risk Fees	10
Administrative Charges	10
Premium Taxes	10
Federal, State and Local Taxes	10
Special Service Fees	11
Service Charge	11
Optional Benefits	11
Underlying Fund Portfolio Fees and Expenses	11
Reduced Fees and Charges	11
ACCESS TO YOUR MONEY	11
Surrenders and Withdrawals	11
Delay of Payment and Transfer	12
Signature Guarantee	12
ANNUITY PAYMENTS (THE INCOME PHASE)	12
Annuity Payment Options	13
DEATH BENEFIT	14
When We Pay A Death Benefit	15
When We Do Not Pay A Death Benefit	15
Deaths After the Annuity Commencement Date	15
Owner Death	16
Spousal Continuation	16
Amount of Death Benefit	16
Guaranteed Minimum Death Benefit	16
Adjusted Withdrawal	17
TAX INFORMATION	17

ADDITIONAL FEATURES	25
Systematic Payout Option	25
Telephone and Electronic Transactions	25
Dollar Cost Averaging Program	26
Asset Rebalancing	26
OTHER INFORMATION	27
State Variations	27
Ownership	27
Beneficiary	27
Right to Cancel Period	27
Assignment	27
Termination for Low Value	28
Sending Forms and Transaction Requests in Good Order	28
Regulatory Modifications to Policy	28
Certain Offers	28
Mixed and Shared Funding	28
Exchanges and/or Reinstatements	29
Voting Rights	29
Abandoned or Unclaimed Property	29
Legal Proceedings	29
Cyber Security	30
Information About Us	31
Financial Condition	31
The Separate Account	32
The Underlying Fund Portfolios	32
Other Transamerica Policies	33
Distribution of the Policies	33
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION	33
APPENDIX
UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS	34
APPENDIX
Designated Investment Options	36
APPENDIX
CONDENSED FINANCIAL INFORMATION	37
APPENDIX
Death Benefit	38

iii

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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. For more information on unit values, including how they are calculated after the Annuity Commencement Date, please see the Statement of Additional Information.

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

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

Annuitize (Annuitization) - When You switch from the accumulation phase to the income phase and we begin to make annuity payments to You (or Your payee).

Annuity Commencement Date - The date upon which annuity payments are to commence. This date may not be later than the last day of the policy month following the month in which the Annuitant attains age 99 (earlier if required by state law).

Annuity Payment Option - A method of receiving a stream of annuity payments selected by the Owner.

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

Business Day—A day when the New York Stock Exchange is open for regular trading.

Death Proceeds – The amount payable upon death.

Owner (You, Your) - The person who may exercise all rights and privileges under the 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
•	withdrawals; plus

•	accumulated gains in the Separate Account; minus
•	accumulated losses in the Separate Account; minus

•	service charges, premium taxes, and other charges, if any.

Policy Year - A Policy Year begins on the Policy Date and on each anniversary thereafter.

Separate Account - Separate Account VA B and Separate Account VA BNY, Separate Accounts established and registered as unit investment trusts under the Investment Company Act of 1940, as amended (the “1940 Act”), to which premium payments under the policies may be allocated.

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 generally at the close of business on each Business Day.

Written Notice - Written Notice, signed by the Owner, that gives us the information we require and is received in good order at the Administrative Office. For some transactions, we may accept an electronic notice or telephone instructions. Such electronic notice must meet the requirements for good order that we establish for such notices.

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INTRODUCTION

How to buy this variable annuity*

√ Choose Between Qualified and Non-Qualified⁽¹⁾⁽²⁾

	Qualified Policy^(3,4) Minimum Initial Deposit		Non-Qualified Policy⁽⁵⁾ Minimum Initial Deposit		Surrender Charge Period		Mortality & Expense Risk and Administrative Charges⁽⁶⁾
Advisory Annuity	$1,000		$5,000		0 years		0.30%

(1)	If you purchase the policy as an individual retirement annuity or as part of a 403(b) plan, 457 plan, a profit sharing plan including a 401(k) plan, or certain other employer sponsored programs, your policy is referred to as a qualified policy. If you purchase the policy other than as part of any arrangement described in the preceding sentence, the policy is referred to as a non-qualified policy.
(2)	This table does not show underlying fund portfolio expenses or annual service charge. This variable annuity may not be available through Your financial intermediary.
(3)	We currently issue new policies to the following plans: Traditional IRAs, Roth IRAs, SIMPLE IRAs, SEP-IRAs, 457(f) plans (in certain circumstances) and Section 401(a) plans (including profit sharing plans, defined benefit pension plans, defined contribution pension plans, 401(k) plans, combination defined benefit/contribution plans).
(4)	Includes anticipated premium at time of application from transfers or rollovers as indicated on Your application or electronic order form.
(5)	Includes anticipated premium at time of application from 1035 exchanges as indicated on Your application or electronic order form.
(6)	The mortality and expense risk charge will not be greater than 0.20% (as shown in the Fee Table and Example Examples). Currently the daily mortality and expense risk charge will be assessed at a rate corresponding to annual charge of 0.17%. The Administrative charge is 0.10%.

√ Choose investment options

•	Subaccounts – Underlying funds representing a range of investment strategies, objectives and asset classes.

You may move Your Policy Value among each of these investment options.

√ Choose optional guaranteed benefits (if desired)

Death Benefit

Return of Premium (Total premium payments minus withdrawals)

Additional fees apply. The optional death benefit may not be available for all policies, in all states, at all times or through all financial intermediaries.

√ Complete our application or order form

√ Pay the applicable minimum initial deposit

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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. See Notes to Fee Table and Expense Examples, No. 5.

The first section describes the fees and expenses that You will pay at the time that You buy the policy, surrender the policy, transfer Cash Value between investment options, or request special services. State premium taxes may also be deducted. State premium taxes currently range from 0% - 3.5%. (All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)

Owner Transaction Expenses:
Sales Load On Purchase Payments	0%
Surrender Fees⁽¹⁾	0%
Special Service Fee⁽²⁾	$50

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⁽³⁾	$25
Separate Account Annual Expenses (as a percentage, annually, of average Policy Value)⁽⁴⁾:
Mortality and Expense Risk Fee	0.20%
Administrative Charge	0.10%
Total Base Separate Account Annual Expenses	0.30%
Optional Separate Account Expenses:
Return of Premium Death Benefit (as a percentage, annually, of average Policy Value)⁽⁴⁾	0.20%
Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses	0.50%

Notes to Fee Table

Owner Transaction Expenses:

1) Maximum Surrender Charge:

This product does not have a surrender charge.

2) Special Service Fees:

We currently deduct a charge for overnight delivery and duplicate policies. We reserve the right to deduct a charge for special services in the future, including non-sufficient checks on new business; duplicate Form 1099 and Form 5498 tax forms; duplicate disclosure documents and semi-annual reports; check copies; printing and mailing previously submitted forms; and asset verification requests from mortgage companies. We may charge a fee for each service performed and fees may vary based on the type of service but will not exceed the maximum Special Service Fee shown above.

3) Annual Service Charge:

The annual service charge of $25 is assessed on each policy anniversary and at the time of surrender. The charge is waived if Your Policy Value or the sum of Your premiums less all withdrawals, is at least $25,000. The annual service charge is the lesser of $25 per Policy Year or 2% of the Policy Value.

4) Separate Account Annual Expenses:

Mortality and Expense Risk Fee: The mortality and expense risk charge will not be greater than 0.20% (as shown in the table); however, the fee may be assessed at a lower rate for certain periods.

Currently the daily mortality and expense risk charge will be assessed at a rate corresponding to an annual charge of 0.17%

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Mortality and Expense Risk and Administrative Fee: The mortality and expense risk and administrative fee shown is for both the accumulation phase and income phase, and is for the Policy Value death benefit.

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

Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses: This reflects the base Separate Account expenses, including the Death Benefit fee. The death benefits are mutually exclusive.

5) Total Portfolio Annual Operating Expenses:

The fee table information relating to the underlying fund portfolios was provided to us by the underlying fund portfolios, their investment advisers or managers. We have not verified the accuracy of information provided by unaffiliated fund portfolios. 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.

The next section shows the lowest and highest total operating expenses charged by the underlying fund portfolios for the year ended December 31, 2018 (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 fees, and other expenses)⁽⁵⁾:
Lowest Gross	0.12%
Highest Gross	0.66%

Expense Examples⁽¹⁾:

The following Examples are intended to help You compare the cost of investing in the policy with the cost of investing in other variable annuity policies. These costs include Owner transaction expenses, 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 policy has a 5% return each year, the highest Total Portfolio Annual Operating Expenses of any of the portfolios for the year ended December 31, 2018, and the base policy with the combination of available optional features with the highest fees and expenses, including the highest Death Benefit. Although Your actual costs may be higher or lower, based on these assumptions, Your costs would be:

If the policy is surrendered or annuitized at the end of the applicable time period or if You do not surrender Your policy:

1 Year	$ 121
3 Years	$ 376
5 Years	$ 652
10 Years	$1,437

Please remember that these Examples are illustrations and do not represent past or future expenses. Your actual expenses may be lower or higher than those reflected in the Examples. Similarly, Your rate of return may be more or less than the 5% assumed in the Examples.

For information concerning compensation paid for the sale of the policies, see OTHER INFORMATION - Distributor of the Policies.

Note to Expense Examples

1) Expense Examples:

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

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THE ANNUITY

This prospectus describes information You should know before You purchase the Transamerica Advisory Annuity.

An annuity is a contract between You (the Owner) and an insurance company (in this case us), where the insurance company promises to pay You an income in the form of annuity payments. These payments begin on a designated date, referred to as the Annuity Commencement Date. Until the Annuity Commencement Date, Your annuity is in the accumulation phase and the earnings (if any) are generally tax deferred. Tax deferral means You are not taxed until You take money out of Your annuity. After You Annuitize, Your annuity switches to the income phase.

The policy is a “deferred” annuity. You can use the policy to accumulate 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 premium payments of at least $50 (but not more than the stated maximum total premium payment amount) until the Annuity Commencement Date. You are not required to make any additional premium payments.

The policy is a “variable” annuity because the value of Your policy can go up or down based on the performance of Your Subaccounts. The amount of money You are able to accumulate in Your policy during the accumulation phase depends upon the performance of Your Subaccounts. You could lose the amount You allocate to the Separate Account. The amount of annuity payments You receive from the Separate Account also depends upon the investment performance of Your Subaccounts for the income phase.

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

PURCHASE

Policy Issue Requirements

We will not issue a policy unless:

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

•	we receive in good order (at our Administrative Office) a minimum initial premium payment (including anticipated premiums from 1035 exchanges on nonqualified policies and transfers or rollovers on qualified policies as indicated on Your application or electronic order form);
•	the Annuitant, Owner, and any joint Owner are age 95 or younger (the limit may be lower for qualified policies); and
•	the Owner and Annuitant have an immediate familial relationship.

Please note, certain riders described herein may require a Younger age. Please carefully read the applicable rider sections regarding any age limitations.

We reserve the right to reject any application.

Premium Payments

General. You should make checks for premium payments payable to Transamerica Life Insurance Company or Transamerica Financial Life Insurance Company, as applicable, and send them to the Administrative Office. Your check must be honored in order for us to pay any associated annuity payments and benefits due under the policy.

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

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

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Initial Premium Requirements. The initial premium payment for nonqualified policies must be at least $5,000 (including anticipated premiums from Internal Revenue Code Section 1035 exchanges, transfers or rollovers as indicated on your application or electronic order form), and at least $1,000 for qualified policies (including anticipated premiums from transfers or rollovers as indicated on your application or electronic order form). You must obtain our prior approval to purchase a policy with an amount in excess of our maximum premium amount.

We will first begin our review only once we receive both Your initial premium payment and Your application (or an electronic order form). We will credit Your initial premium payment to Your policy within two Business Days after the Business Day that we receive Your initial premium payment, Your application (or order form) and once we determine that Your policy information is both complete and in good order. If we are unable to complete our part of the process within five Business Days after the Business Day that we receive Your initial premium payment and Your application (or electronic order form), then we will notify You or Your financial intermediary, if applicable, and explain why we can't process Your policy. We will also return Your initial premium payment at that time unless You consent to us holding the premium up to 30 days. We must receive Your consent to hold prior to the market close on the fifth Business Day after receipt of the premium. If Your information is not received in good order within 30 days of our receipt of the premium, then it will be returned. We will credit Your initial premium payment within two Business Days after Your information is both complete and in good order.

We are not responsible for lost investment opportunities while we complete our review processes. Any initial premium payments received by us will be held in our general account until credited to Your policy. You will not earn interest on Your initial premium payment during these review periods.

The date on which we credit Your initial premium payment to Your policy is generally the Policy Date. The Policy Date is used to determine Policy Years, policy quarters, policy months and policy anniversaries.

Additional Premium Payments. You are not required to make any additional premium payments. However, You can generally make additional premium payments during the accumulation phase. Additional premium payments must be at least $250. We will credit additional premium payments to Your policy as of the Business Day we receive Your premium and required information in good order at our Administrative Office. Additional premium payments must be received in good order before the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern time) to get same-day pricing of the additional premium payment. Additional premium payments received in good order on non-Business Days or after our close of business on Business Days will receive next-day pricing. See OTHER INFORMATION – Sending Forms and Transaction Requests in Good Order.

Maximum Total Premium Payments. We reserve the right to require prior approval of any cumulative premium payments over the maximum shown in the following table (this includes subsequent premium payments) for policies with the same Owner or same Annuitant issued by us or an affiliate.

Death Benefit	Issue Ages	Maximum Premium
Policy Value	0-95	$5,000,000
Return of Premium	0-75	$1,000,000

Allocation of Premium Payments. When You purchase a policy, we will allocate Your premium payment to the investment choices You select. Your allocation must be in whole percentages and must total 100%. We will allocate additional premium payments the same way, unless You request a different allocation. You could lose the amount You allocate to the Subaccounts.

If You allocate premium payments to the Dollar Cost Averaging program (if it is available), You must give us instructions regarding the Subaccount(s) to which transfers are to be made or we cannot accept your premium payment.

You may change allocations for future additional premium payments by sending written instructions to our Administrative Office, or by telephone, or other electronic means acceptable to us, subject to the limitations described in ADDITIONAL FEATURES - Telephone and Electronic Transactions, or any other means acceptable to us. The allocation change will apply to premium payments received on or after the date we receive the change request in good order.

We reserve the right to restrict or refuse any premium payment.

Policy Value

You should expect Your Policy Value to change from Valuation Period to Valuation Period. A Valuation Period begins at the close of regular trading on the New York Stock Exchange on each Business Day and ends at the close of regular trading on the next succeeding Business Day. A Business Day is each day that the New York Stock Exchange is open for business. Regular trading on the New York Stock Exchange usually closes at 4:00 p.m., Eastern Time. Holidays are generally not Business Days.

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INVESTMENT OPTIONS

This policy offers You a means of investing in various underlying fund portfolios offered by different investment companies (by investing in the corresponding Subaccounts). The companies that provide investment advice and administrative services for the underlying fund portfolios offered through this policy are listed in the “Appendix - Underlying Fund 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 adviser or manager that are sold directly to the public. You should not expect the investment results of the underlying fund portfolios to be the same as those of other portfolios.

More detailed information, including an explanation of the portfolios' fees and investment objectives, may be found in the current prospectuses for the underlying fund portfolios. You will be provided the current prospectuses of the underlying fund portfolios for which You are invested in. The current prospectuses for all underlying fund portfolios offered are available free of charge by request. 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 underlying fund portfolios listed in “Appendix - Underlying Fund Portfolios Associated with the Subaccounts,” please follow the instructions on the first page of the summary prospectus to obtain a copy of the full underlying fund prospectus or its statement of additional information.

Addition, Deletion, or Substitution of Investment Options

We cannot and do not guarantee that any of the Subaccounts will always be available for premium payments, allocations, or transfers. We retain the right, subject to any applicable law, to make certain changes to the Separate Account and its investment options. We reserve the right to add new Subaccounts or close existing Subaccounts. We also reserve the right to eliminate the shares of any portfolio held by a Subaccount and to substitute shares of other underlying fund portfolios or of other registered open-end management investment companies. To the extent required by applicable law, substitutions of shares attributable to Your interest in a Subaccount will not be made without prior notice to You and the prior regulatory approval. Nothing contained herein shall prevent the Separate Account from purchasing other securities for other series or classes of variable annuity policies, or from affecting an exchange between series or classes of variable annuity policies on the basis of Your requests.

New Subaccounts may be established when, in our sole discretion, marketing, tax, investment or other conditions warrant. Any new Subaccounts may be made available to existing Owners on a basis to be determined by us. Each additional Subaccount will purchase shares in an underlying fund portfolio or other investment vehicle. We may also close one or more Subaccounts if, in our sole discretion, marketing, tax, investment or other conditions warrant such change. In the event any Subaccount is closed, we will notify You and request a reallocation of the amounts invested in the closed Subaccount. If we do not receive additional instructions, any subsequent premium payments, or transfers (including Dollar Cost Averaging transactions or asset rebalance programs transactions) into a closed Subaccount will be re-allocated to the remaining available investment options according to the investment allocation instructions You previously provided. If Your previous investment allocation instructions do not include any available investment options, we will require new instructions. If we do not receive new instructions, the requested transaction will be canceled and any premium payment will be returned. Under asset rebalance programs the value remaining in the closed Subaccount will be excluded from any future rebalancing. The value of the closed Subaccount will continue to fluctuate due to portfolio performance, and may exceed the original rebalance percentages You requested. As You consider Your overall investment strategy within Your policy, You should also consider whether or not to re-allocate the value remaining in the closed Subaccount to another investment option. If You decide to re-allocate the value of the closed Subaccount, You will need to provide us with instructions to achieve Your goal. Under certain situations involving death benefit adjustments for continued policies, if an investment option is closed to new investment, the amount that would have been allocated thereto will instead be allocated pro-rata to the other current investment options You have value allocated to and which are open to new investment.

In the event of any such substitution or change, we may, by appropriate endorsement, make such changes in the policies as may be necessary or appropriate to reflect such substitution or change. Furthermore, if deemed to be in the best interests of persons having voting rights under the policies, the Separate Account may be (1) operated as a management company under the 1940 Act or any other form permitted by law, (2) deregistered under the 1940 Act in the event such registration is no longer required or (3) combined with one or more other Separate Accounts. To the extent permitted by applicable law, we also may (1) transfer the assets of the Separate Account associated with the policies to another account or accounts, (2) restrict or eliminate any voting rights of Owners or other persons who have voting rights as to the Separate Account, (3) create new Separate Accounts, (4) add new Subaccounts to or remove existing Subaccounts from the Separate Account, or combine Subaccounts or (5) add new underlying fund portfolios, or substitute a new underlying fund portfolio for an existing underlying fund portfolio.

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In addition, a Subaccount could become no longer available due to the liquidation of its corresponding underlying fund portfolio. To the extent permitted by applicable law, upon advance notice to You and unless You otherwise instruct us, we will:

1)	Re-allocate any Policy Value in the liquidated fund to the money market Subaccount or a Subaccount investing in another underlying fund portfolio designated by us; and
2)	Allocate any subsequent Purchase Payments and/or transfers (including Dollar Cost Averaging transactions or asset rebalance programs transactions) to the other Subaccounts You have selected.

Transfers

During the accumulation phase, You may make transfers to or from any investment option within certain limitations. In general, each transfer from a Subaccount must be at least $500, or the entire Subaccount value if less than $500. If less than $500 remains as a result of the transfer, then we reserve the right to include that amount in the transfer. Transfer requests must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Transfer requests received in good order on non-Business Days or after our close of business on Business Days will get next-day pricing. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order.

During the income phase, You may transfer values out of any Subaccount. The minimum amount that can be transferred during this phase is the lesser of $10 of monthly income, or the entire monthly income of the annuity units in the Subaccount from which the transfer is being made.

Transfers made by telephone, or other electronic means acceptable to us, are subject to the limitations described in ADDITIONAL FEATURES - Telephone and Electronic Transactions.

Market Timing and Disruptive Trading

Statement of Policy. This variable annuity policy was not designed to accommodate market timing or frequent or large transfers among the Subaccounts or between the Subaccounts. (Both frequent and large transfers may be considered disruptive.)

Market timing and disruptive trading can adversely affect You, other Owners, beneficiaries and underlying fund portfolios. The adverse effects may include: (1) dilution of the interests of long-term investors in a Subaccount if purchases or transfers into or out of an underlying fund portfolio are made at prices that do not reflect an accurate value for the underlying fund portfolio’s investments (some market timers attempt to do this through methods known as “time-zone arbitrage” and “liquidity arbitrage”); (2) an adverse effect on portfolio management, such as (a) impeding a portfolio manager’s ability to seek or sustain an investment objective; (b) causing the underlying fund portfolio to maintain a higher level of cash than would otherwise be the case; or (c) causing an underlying fund portfolio to liquidate investments prematurely (or otherwise at an inopportune time) in order to pay withdrawals or transfers out of the underlying fund portfolio; and (3) increased brokerage and administrative expenses. These costs are borne by all Owners invested in those Subaccounts, not just those making the transfers.

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

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

Deterrence. If we determine You or anyone acting on Your behalf is engaged in market timing or disruptive trading, we may take one or more actions in an attempt to halt such trading. Your ability to make transfers is subject to modification or restriction if we determine, in our sole opinion, that Your exercise of the transfer privilege may disadvantage or potentially harm the rights or interests of other Owners (or others having an interest in the variable insurance products). As described below, restrictions may take various forms, but under our current policies and procedures will include loss of expedited transfer privileges. We consider transfers by telephone, fax, overnight mail, or the Internet to be “expedited” transfers. This means that we would accept only written transfer requests with an original signature transmitted to us only by U.S. mail. We may also restrict the transfer privileges of others acting on Your behalf, including Your financial intermediary or an asset allocation or investment advisory service.

We reserve the right to reject any premium payment or transfer request from any person without prior notice, if, in our judgment, (1) the premium payment or transfer, or series of premium payments or transfers, would have a negative impact on an underlying fund portfolio's operations, or (2) if an underlying fund portfolio would reject or has rejected our purchase order or has instructed us not

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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 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 Owners may be treated differently than others in that some transfers may be reversed and others allowed. For all of these purposes, we may aggregate two or more trades or variable insurance products that we believe are connected by Owner or persons engaged in trading on behalf of Owners.

Please note: If You engage a third party investment adviser for asset allocation services, then You may be subject to these transfer restrictions because of the actions of Your investment adviser in providing these services.

In addition to our internal policies and procedures, we will administer Your variable annuity 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 imposed by the underlying fund portfolios or our competitors may be more or less successful than ours in deterring market timing or other disruptive trading and in preventing or limiting harm from such trading.

In the absence of 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 Owners (or those acting on their behalf) to avoid detection. As a result, despite our efforts to prevent harmful trading activity among the variable investment options available under this variable insurance product, there is no assurance that we will be able to detect or deter market timing or disruptive trading by such Owners or intermediaries acting on their behalf. Moreover, our ability to discourage and restrict market timing or disruptive trading may be limited by decisions of state regulatory bodies and court orders that we cannot predict.

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

Underlying Fund Portfolio Frequent Trading Policies. The underlying fund portfolios may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares. Underlying fund portfolios may, for example, assess a redemption fee (which we reserve the right to collect) on shares held for less than a certain period of time. The prospectuses for the underlying fund portfolios describe any such policies and procedures. The frequent trading policies and procedures of an underlying fund portfolio may be different, and more or less restrictive, than the frequent trading policies and procedures of other underlying fund portfolios and the policies and procedures we have adopted for our variable insurance products

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to discourage market timing and disruptive trading. Owners should be aware that we do not monitor transfer requests from Owners or persons acting on behalf of Owners against, nor do we apply, the frequent trading policies and procedures of the respective underlying fund portfolios that would be affected by the transfers.

Owners should be aware that we are required to provide to an underlying fund portfolio or its payee, promptly upon request, certain information about the trading activity of individual Owners, and to restrict or prohibit further purchases or transfers by specific Owners or persons acting on their behalf, identified by an underlying fund portfolio as violating the frequent trading policies established for the underlying fund portfolio.

Omnibus Orders. Owners and other persons with material rights under the variable insurance products also should be aware that the purchase and redemption orders received by the underlying fund portfolios generally are “omnibus” orders from intermediaries such as retirement plans and Separate Accounts funding variable insurance products. The omnibus orders reflect the aggregation and netting of multiple orders from individual retirement plan participants and individual Owners of variable insurance products. The omnibus nature of these orders may limit the underlying fund 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 may affect other Owners of underlying fund portfolio shares, as well as the Owners of all of the variable annuity or life insurance policies, including ours, whose variable investment options correspond to the affected underlying fund portfolios. In addition, if an underlying fund portfolio believes that an omnibus order we submit may reflect one or more transfer requests from Owners engaged in market timing and disruptive trading, the underlying fund portfolio may reject the entire omnibus order and thereby delay or prevent us from implementing Your request.

EXPENSES

There are charges and expenses associated with Your policy that reduce the return on Your investment in the policy. In addition to the following charges, there is an optional benefit that if selected, assesses an additional charges.

Mortality and Expense Risk Fees

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

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

Administrative Charges

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

Premium Taxes

A deduction is also made for premium taxes, if any, imposed on us by a state, municipality or other government agency. The tax, currently ranging from 0% to 3.50%, is assessed at the time premium payments are made or when annuity payments begin. We pay the premium tax at the time it is imposed. We will, at our discretion, deduct the total amount of premium taxes, if any, from the Policy Value when such taxes are due to the applicable taxing authority, You begin receiving annuity payments, You surrender the policy or a death benefit is paid.

Federal, State and Local Taxes

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

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Special Service Fees

We may deduct a charge for special services, including overnight delivery, duplicate policies; non-sufficient checks on new business; duplicate Form 1099 and Form 5498] tax forms; duplicate disclosure documents and semi-annual reports; check copies; printing and mailing previously submitted forms; and asset verification requests from mortgage companies. In addition, we may consider as special services customer initiated changes, modifications and transactions which are submitted in such a manner as to require us to incur additional processing costs.

Service Charge

During the accumulation phase, an annual service charge of $25 (but not more than 2% of the Policy Value) is charged on each policy anniversary and at surrender. The service charge is waived if Your Policy Value or the sum or Your premiums, less all withdrawals, is at least $25,000.

Optional Benefits

If You elect to purchase the optional death benefit, we will deduct an additional fee. The optional death benefit fee is assessed against the daily net asset value of each Subaccount. Please refer to the FEE TABLE AND EXPENSE EXAMPLES for the list of fees.

Underlying Fund Portfolio Fees and Expenses

The value of the assets in each Subaccount will reflect the fees and expenses paid by the underlying fund portfolios. The lowest and highest underlying fund portfolio expenses for the previous calendar year are found in FEE TABLE AND EXPENSE EXAMPLES in this prospectus. See the prospectuses for the underlying fund portfolios for more information.

Reduced Fees and Charges

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

ACCESS TO YOUR MONEY

During the accumulation phase, You can have access to the money in Your policy in the following ways:

•	by taking a withdrawal or surrender; or
•	by taking systematic payouts (See ADDITIONAL FEATURES - Systematic Payout Option for more details).

Surrenders and Withdrawals

During the accumulation phase, if You take a full withdrawal (surrender) You will receive Your Policy Value. If You want to take a withdrawal, in most cases it must be for at least $500. Certain optional benefits have specific requirements regarding the order in which withdrawals can be taken from investment options. Unless You tell us otherwise, we will take the withdrawal from each of the investment options in proportion to the Policy Value. Surrenders may be referred to as withdrawals on Your policy statement and other documents.

Remember that any withdrawal You take will reduce the Policy Value, and the amount of the death benefit. See DEATH BENEFIT, for more details.

Income taxes, federal tax penalties and certain restrictions may apply to any withdrawals You take.

Withdrawals from qualified policies may be restricted or prohibited.

During the income phase, You will receive annuity payments under the Annuity Payment Option You select; however, You generally may not take any other withdrawals.

Please note: As discussed under OTHER INFORMATION - Distribution of Policies, any fees that You pay Your financial intermediary are separate from and in addition to the fees and expenses of the policy. If You elect to have these fees deducted from Your policy through withdrawals, such withdrawals will reduce Your Policy Value and may have tax consequences. See “Appendix - Advisory Fee Withdrawal Examples”.

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Delay of Payment and Transfer

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

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

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

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

Transfers of amounts from the Subaccounts also may be deferred under these circumstances. In addition, if, pursuant to SEC rules, the Transamerica BlackRock Government Money Market VP portfolio (or any money market portfolio offered under this policy) suspends payment of redemption proceeds in connection with a liquidation of the portfolio, then we may delay payment of any transfer, surrender, withdrawal, loan, or death benefit from the TA BlackRock Government Money Market Subaccount until the portfolio is liquidated.

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

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” an Owner's account. If these laws apply in a particular situation, we would not be allowed to pay any request for withdrawals, 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.

Signature Guarantee

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

•	Any withdrawals or surrenders over $250,000 unless it is a custodial owned annuity;

•	Any non-electronic disbursement request made on or within 15 days of a change to the address of record for the policy Owner’s account;

•	Any electronic fund transfer instruction changes on or within 15 days of an address change;

•

Any withdrawal or surrender when we have been directed to send proceeds to a different personal address from the address of record for that Owner. PLEASE NOTE: This requirement will not apply to requests made in connection with exchanges of one annuity for another with the same Owner in a “tax-free exchange”;

•	Any withdrawal or surrender when we do not have an originating or guaranteed signature on file unless it is a custodial owned annuity;
•	Any other transaction we require.

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

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

ANNUITY PAYMENTS (THE INCOME PHASE)

Upon the Annuity Commencement Date, which is the date Your policy is Annuitized and annuity payments begin, Your annuity switches from the accumulation phase to the income phase. You can generally change the Annuity Commencement Date by giving us 30 days notice with the new date or age. The earliest income date is at least 30 days after the Policy Date. The latest Annuity Commencement Date generally cannot be later than the last day of the month following the month in which the Annuitant attains age 99 (earlier if required by state law).

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Before the Annuity Commencement Date, if the Annuitant is alive, You may choose an Annuity Payment Option or change Your election. If the Annuitant dies before the Annuity Commencement Date, the death benefit is payable in a lump sum or under one of the Annuity Payment Options (unless the surviving spouse is eligible to and elects to continue the policy). If the Annuitant dies after the Annuity Commencement Date, no death benefit is payable and any remaining guaranteed payment will be paid to the beneficiary as provided for in the annuity income option elected.

Your policy may not be “partially” Annuitized, i.e., You may not apply a portion of Your Policy Value to an annuity option while keeping the remainder of Your policy in force.

Unless You specify otherwise, the Owner will receive the annuity payments. After the Annuitant's death, the beneficiary You designate at Annuitization will receive any remaining guaranteed payments.

Annuity Payment Options

The policy provides several Annuity Payment Options (also known as income options) that are described below. You may choose any combination of Annuity Payment Options. We will use Your Policy Value to provide these annuity payments. If the Policy Value on the Annuity Commencement Date is less than $2,000, we reserve the right to pay it in one lump sum in lieu of applying it under an Annuity Payment Option. You can receive annuity payments monthly, quarterly, semi-annually, or annually. (We reserve the right to change the frequency if annuity payments would be less than the amount specified in Your policy.) We may require proof of life before making annuity payments.

In deciding on which Annuity Payment Option to elect, You must decide if fixed or variable payments are better for You. If You choose to receive fixed annuity payments, then the amount of each payment will be set on the Annuity Commencement Date and will not change. You may, however, choose to receive variable annuity payments. The dollar amount of the first variable annuity payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the policy. The dollar amount of additional variable annuity payments will vary based on the investment performance of the Subaccount(s) You select. The dollar amount of each variable annuity payment after the first may increase, decrease, or remain constant. If the actual investment performance (net of fees and expenses) exactly matched the Assumed Investment Return of 3% at all times, the amount of each variable annuity payment would remain constant. If actual investment performance (net of fees and expenses) exceeds the Assumed Investment Return, the amount of the variable annuity payments would increase.

For example, assume the first monthly variable annuity payment is $500.00, further assume that the investment performance for the 1^st month is an 8.00% annual rate of return, then the second monthly variable annuity payment would increase to $501.37. Conversely, if actual investment performance (net of fees and expenses) is lower than the Assumed Investment Return, the amount of the variable annuity payments would decrease. Continuing from the previous example, further assume that the investment performance for the 2^nd month is a -2.00% annual rate of return, then the 3^rd monthly variable payment would decrease to $498.88.

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

A charge for premium taxes may be made when annuity payments begin.

The Annuity Payment Options currently available are explained below. Some options are fixed only.

Income for a Specified Period (fixed only). We will make level annuity payments only for a fixed period. No funds will remain at the end of the period. If Your policy is a qualified policy, this Annuity Payment Option may not satisfy minimum required distribution rules. Consult a tax adviser before electing this option.

Income of a Specified Amount (fixed only). Payments are made for any specified amount until the amount applied to this option, with interest, is exhausted. This will be a series of level annuity payments followed by a smaller final annuity payment. If Your policy is a qualified policy, this Annuity Payment Option may not satisfy minimum required distribution rules. Consult a tax adviser before electing this option.

Life Income. You may choose between:

•	No Period Certain (fixed or variable) - Payments will be made only during the Annuitant's lifetime. The last annuity payment will be the payment immediately before the Annuitant's death. If You choose this option and the Annuitant dies before the due date of the first annuity payment no payments will be made.
•	10 Years Certain (fixed or variable) - Payments will be made for the longer of the Annuitant's lifetime or ten years.

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•	Guaranteed Return of Policy Proceeds (fixed only) - Payments will be made for the longer of the Annuitant's lifetime or until the total dollar amount of annuity payments we made to You equals the Annuitized amount (i.e., the Adjusted Policy Value less premium tax, if applicable).

Joint and Survivor Annuity. You may choose:

•	No Period Certain (fixed or variable) - Payments are made during the joint lifetime of the Annuitant and a joint Annuitant of Your selection. Annuity payments will be made as long as either person is living. If You choose this option and both joint Annuitants die before the due date of the first annuity payment no payments will be made.
•	10 Year Certain (fixed only) - Payments will be made for the longer of the lifetime of the Annuitant and joint Annuitant or ten years.

Other Annuity Payment Options may be arranged by agreement with us. Some Annuity Payment Options may not be available for all policies, all ages or we may limit certain Annuity Payment Options to ensure they comply with the applicable tax law provisions.

NOTE CAREFULLY

IF:

•	You choose Life Income with No Period Certain or a Joint and Survivor Annuity with No Period Certain; and
•	the Annuitant dies (or both joint Annuitants die) before the due date of the second (third, fourth, etc.) annuity payment;

THEN:

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

IF:

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

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

THEN:

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

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

You must Annuitize Your policy no later than the maximum Annuity Commencement Date specified in Your policy (earlier for certain distribution channels) or a later date if agreed to by us. If You do not elect an Annuity Payment Option, the default option will be variable payments under Life with 10 Years Certain. If any portion of the default Annuitization is a variable payout option, then annuity units will be purchased proportionally based off Your available current investment allocations. Please note, all benefits (including guaranteed minimum death benefits) terminate upon Annuitization. The only benefits that remain include the guarantees provided under the terms of the annuity option.

DEATH BENEFIT

We will pay a death benefit to Your beneficiary, under certain circumstances, if the Annuitant dies during the accumulation phase. If there is a surviving Owner(s) when the Annuitant dies, the surviving Owner(s) will receive the death benefit instead of the listed beneficiary. The person receiving the death benefit may choose an Annuity Payment Option (if You pick a variable Annuity Payment Option fees and expenses will apply), or may choose to receive the death benefit as a lump sum withdrawal. The guarantees of these death benefits are based on our claims-paying ability. No death benefit will be payable upon or after the Annuity Commencement Date. Please note that there is a mandatory Annuity Commencement Date. See ANNUITY PAYMENTS (THE INCOME PHASE) section in this prospectus.

We will determine the amount of and process the death benefit proceeds, if any are payable on a policy, upon receipt at our Administrative Office of satisfactory proof of the Annuitant's death, directions regarding how to process the death benefit, and any other documents, forms and information that we need (collectively referred to as “due proof of death”). For policies with multiple beneficiaries, we will process the death benefit when the first beneficiary provides us with due proof of death for their share of the Death Proceeds. We will not pay any remaining beneficiary(ies) their share(s) until we receive due proof of death for their share(s) of

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the Death Proceeds. Such beneficiaries continue to bear the investment risk until they submit due proof of death. Please note, we may be required to remit the death benefit proceeds to a state prior to receiving “due proof of death.” See OTHER INFORMATION - Abandoned or Unclaimed Property

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

The death benefit proceeds remain invested in the Separate Account in accordance with the allocations made by the policy Owner until the beneficiary has provided us with due proof of death. Once we receive due proof of death, investments in the Separate Account may be reallocated in accordance with the beneficiary's instructions.

We may permit the beneficiary to give a “one-time” written instruction to reallocate the Policy Value in the Separate Account to the money market Subaccount after the death of the Annuitant. If there is more than one beneficiary, all beneficiaries must agree to the reallocation instructions. This one-time reallocation will be permitted if the beneficiary provides satisfactory evidence of the Annuitant's death (satisfactory evidence may include a certified death certificate).

When We Pay A Death Benefit

We will pay a death benefit IF:

•	You are both the Annuitant and sole Owner of the policy; and
•	You die before the Annuity Commencement Date.

We will pay a death benefit to You (Owner) IF:

•	You are not the Annuitant; and
•	the Annuitant dies before the Annuity Commencement Date.

Please note: If there is a surviving Owner(s) when the Annuitant dies, the surviving Owner(s) will receive the death benefit (i.e., the surviving Owner(s) takes the place of any beneficiary designation).

If the designated beneficiary receiving the death benefit is the surviving spouse of the deceased, then he or she may elect, if eligible, to continue the policy as the new Annuitant and Owner, instead of receiving the death benefit. See DEATH BENEFIT - Spousal Continuation.

When We Do Not Pay A Death Benefit

We will not pay a death benefit IF:

•	You are the Owner but not the Annuitant; and
•	You die prior to the Annuity Commencement Date.

Please note: If an Owner (who is not the Annuitant) dies before the Annuitant, the amount payable will be equal to the Policy Value. Distribution requirements apply upon the death of any Owner. Generally, upon the Owner's death (who is not the Annuitant) the entire interest must be distributed within five years. See TAX INFORMATION for a more detailed discussion of the distribution requirements under the Code.

Deaths After the Annuity Commencement Date

The amount payable, if any, on or after the Annuity Commencement Date depends on the annuity income option.

IF:

•	You are not the Annuitant; and
•	You die on or after the Annuity Commencement Date; and

•	the entire guaranteed amount in the policy has not been paid;

THEN:

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

IF:

•	You are the Owner and Annuitant; and
•	You die after the Annuity Commencement Date; and
•	the Annuity Payment Option You selected did not have or no longer has a guaranteed period;

THEN:

•	no additional payments will be made.

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Owner Death

If an Owner (who is not the Annuitant) dies during the accumulation phase, the Policy Value will be paid to the person or entity first listed below who is alive or in existence on the date of that death:

•	any surviving Owner(s);

•	primary beneficiary(ies);
•	contingent beneficiary(ies); or

•	deceased Owner's estate.

Spousal Continuation

If the sole primary beneficiary is the spouse of the deceased, upon the Owner's or the Annuitant's death, the beneficiary may elect to continue the policy in his or her own name. Upon the Annuitant's death if such election is made, the Policy Value will be adjusted upward (but not downward) to an amount equal to the death benefit amount determined upon such election and receipt of due proof of death of the Annuitant. Any excess of the death benefit amount over the Policy Value will be allocated to each applicable investment option in the ratio that the Policy Value in the investment option bears to the total Policy Value. The terms and conditions of the policy that applied prior to the Annuitant's death will continue to apply, with certain exceptions described in the policy. For purposes of the death benefit on the continued policy, the death benefit is calculated in the same manner as it was prior to continuation on the date the spouse continues the policy. See TAX INFORMATION - Same Sex Relationships for more information concerning spousal continuation involving same sex spouses.

For these purposes, if the sole primary beneficiary of the policy is a revocable grantor trust and the spouse of the Owner/Annuitant is the sole grantor, trustee, and beneficiary of the trust and the trust is using the spouse of the Owner/Annuitant's social security number at the time of claim, she or he shall be treated as the Owner/Annuitant's spouse. In those circumstances, the Owner/Annuitant's spouse will be treated as the beneficiary of the policy for purposes of applying the spousal continuation provisions of the policy.

For these purposes, if the Owner is an individual retirement account within the meaning of IRC sections 408 or 408A and if the Annuitant's spouse is the sole primary beneficiary of the Annuitant's interest in such account, the Annuitant's spouse will be treated as the beneficiary of the policy for purposes of applying the spousal continuation provisions of the policy.

Amount of Death Benefit

Death benefit provisions may differ from state to state. The death benefit may be paid as a lump sum, as annuity payments or as otherwise permitted by the Company in accordance with applicable law. The amount of the death benefit depends on the guaranteed minimum death benefit option, 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; and

•	the guaranteed minimum death benefit (if one was elected) on the date of death; plus premium payments, minus withdrawals, from the date of death to the date the death benefit is paid. Please see “Appendix - Death Benefit” for illustrative examples regarding death benefit calculations.

Please note: The death benefit terminates upon Annuitization.

Guaranteed Minimum Death Benefit

The guaranteed minimum death benefit terminates upon Annuitization and there is a mandatory Annuity Commencement Date. On the policy application, You may generally choose a guaranteed minimum death benefit, Return of Premium (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.

Return of Premium Death Benefit

The Return of Premium Death Benefit is equal to:

•	total premium payments; minus
•	any adjusted withdrawals (please see “Appendix - Death Benefit”) as of the date of death; minus
•	withdrawals from the date of death to the date the death benefit is paid.

This benefit is not available if You or the Annuitant is 76 or older on the Policy Date. There is an extra charge for this death benefit. See FEE TABLE AND EXPENSE EXAMPLES.

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Designated Investment Options. If You elected the Return of Premium Death Benefit, You must allocate 100% of Your Policy Value to one or more of the designated investment options approved for the Return of Premium Death Benefit. See “Appendix – Designated Investment Options” for a complete listing of available designated options. Requiring that You designate 100% of Your Policy Value to the designated investment options, some of which employ strategies that are intended to reduce the risk of loss and/or manage volatility, may reduce investment returns and may reduce the likelihood that we will be required to use our own assets to pay amounts due under this benefit.

Please note:

•	All Policy Value must be allocated to one or more designated investment options.
•	You may transfer amounts among the designated investment options; however, You cannot transfer any amount to any other Subaccount if You elect this death benefit.

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

The Guaranteed Minimum Death Benefit may not be available for all policies, in all states, at all times or through all financial intermediaries. Once you elect a death benefit and your policy is issued, your death benefit cannot be changed new sales.

Adjusted Withdrawal

When You request a withdrawal, Your guaranteed minimum death benefit will be reduced by an amount called the adjusted withdrawal. Under certain circumstances, the adjusted withdrawal may be more than the dollar amount of Your withdrawal request. This will generally be the case if the guaranteed minimum death benefit exceeds the Policy Value at the time of withdrawal. It is also possible that if a death benefit is paid after You have taken a withdrawal, then the total amount paid could be less than the total premium payments.

The formula used to calculate the adjusted withdrawal amount is: adjusted withdrawal = amount of the withdrawal x (the current Death Proceeds prior to the withdrawal / Policy Value prior to the withdrawal).

We have included a detailed explanation of this adjustment with examples in the “Appendix - Death Benefit.” This is referred to as “adjusted withdrawal” in Your policy. If You have a qualified policy, minimum required distributions rules may require You to request a withdrawal.

TAX INFORMATION

NOTE: We have prepared the following information on federal taxes as a general discussion of the subject. It is not intended as tax advice to any taxpayer. The federal tax consequences discussed herein reflects our understanding of current law, and the law may change. No representation is made regarding the likelihood of continuation of the present federal tax law or of the current interpretations by the Internal Revenue Service. The discussion briefly references federal estate, gift and generation-skipping transfer taxes, but principally discusses federal income taxes. No attempt is made to consider any applicable state or other income tax laws, any state and local estate or inheritance tax, or other tax consequences of ownership or receipt of distributions under the policy. You should consult 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 trusts) owns a nonqualified policy, the policy will generally not be treated as an annuity for tax purposes. Thus, the Owner must generally include in income any increase in the Policy Value over the investment in the policy during each taxable year.

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

If You purchase the policy as an individual retirement annuity or as a part of a 403(b) plan, 457 plan, a pension plan, a profit sharing plan (including a 401(k) plan), or certain other employer sponsored retirement programs, Your policy is referred to as a qualified policy. There is no additional tax deferral benefit derived from placing qualified funds into a variable annuity. Features other than tax deferral should be considered in the purchase of a qualified policy. There are limits on the amount of contributions You can make to a qualified policy. 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.

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

You will generally not be taxed on increases in the value of Your policy, whether qualified or nonqualified, until a distribution occurs (e.g., as a surrender, withdrawal, or as annuity payments). However, You may be subject to current taxation if You assign or pledge or enter into an agreement to assign or pledge any portion of the policy. You may also be subject to current taxation if You make a gift of a nonqualified policy without valuable consideration. All amounts received from the policy that are includible in income are taxed at ordinary income rates; no amounts received from the policy are taxable at the lower rates applicable to capital gains.

The Internal Revenue Service (“IRS”) has not reviewed the policy for qualification as 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 elected may need to be taken into account in calculating minimum required distributions from a qualified plan/or policy.

We may occasionally enter into settlements with Owners and beneficiaries to resolve issues relating to the policy. Such settlements will be reported on the applicable tax form (e.g., Form 1099) provided to the taxpayer and the taxing authorities.

Taxation of Us

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

Tax Status of a Nonqualified Policy

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

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

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

We believe that the Owner of a policy should not be treated as the Owner of the underlying assets. We reserve the right to modify the policies to bring them into conformity with applicable standards should such modification be necessary to prevent Owners of the policies from being treated as the Owners of the underlying Separate Account assets. Concerned Owners should consult their own 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 date and before the entire interest in the policy has been distributed, the remaining portion must be distributed at least as rapidly as under the method in effect on such Owner's death. If any Owner dies before the annuity starting date, the entire interest in the policy must generally be distributed (1) within 5 years after such Owner's date of death or (2) to (or for the benefit of) a designated beneficiary, over the life of such designated beneficiary

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(or over a period not extending beyond the life expectancy of such beneficiary) and such distribution begin not later than 1 year after the date of the Owner’s death (also known as a “stretch” payout). The designated beneficiary must be an individual. The only method we use for making distribution payments from a nonqualified “stretch” payment option is the required minimum distribution method as set forth in Revenue Ruling 2002-62. The applicable payments are calculated using the Single Life Expectancy Table set forth in Treasury Regulations § 1.401(a)(9)-9, A-1. However, if upon such Owner's death the Owner's surviving spouse is the designated beneficiary of the policy, then the policy may be continued with the surviving spouse as the new Owner. If any Owner is a non-natural person (except in the case of certain grantor trusts), then for purposes of these distribution requirements, the primary Annuitant shall be treated as an Owner and any death or change of such primary Annuitant shall be treated as the death of an Owner.

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

Taxation of a Nonqualified Policy

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

In General. Code Section 72 governs taxation of annuities in general. We believe that an Owner who is an individual will not be taxed on increases in the value of a policy until such amounts are surrendered or distributed. For this purpose, the assignment, pledge, or agreement to assign or pledge any portion of the Policy Value as collateral for a loan generally will be treated as a distribution of such portion. You may also be subject to current taxation if You make a gift of a nonqualified policy without valuable consideration. The taxable portion of a distribution is taxable as ordinary income.

Non-Natural Persons. Pursuant to Section 72(u) of the Code, a nonqualified policy held by a taxpayer other than a natural person generally will not be treated as an annuity policy under the Code; accordingly, an Owner who is not a natural person will recognize as ordinary income for a taxable year the excess, if any, of the Policy Value over the “investment in the contract”. There are some exceptions to this rule and a prospective purchaser of the policy that is not a natural person should discuss these rules with a competent 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.

It is possible that at certain advanced ages a policy might no longer be treated as an annuity contract if the policy has not been annuitized before that age or have other tax consequences. You should consult with a tax adviser about the tax consequences in such circumstances.

Taxation of Annuity Payments

Although the tax consequences may vary depending on the Annuity Payment Option You select, in general, for nonqualified and certain qualified policies, only a portion of the annuity payments You receive will be includable in Your gross income.

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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. The “investment in the policy” is generally equal to the premiums You pay for the policy, reduced by any amounts You have previously received from the policy that are excludible from gross income.

If You select more than one Annuity Payment Option, special rules govern the allocation of the policy's entire “investment in the policy” to each such option, for purposes of determining the excludable amount of each payment received under that option. We advise You to consult a competent 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 on Your tax return.

Taxation of Surrenders and Withdrawals - Nonqualified Policies

When You surrender Your policy, You are generally taxed on the amount that Your surrender proceeds exceeds the “investment in the policy”. The “investment in the policy” is generally equal to the premiums You pay for the policy, reduced by any amounts You have previously received from the policy that are excludible from gross income. Withdrawals are generally treated first as taxable income to the extent of the excess in the Policy Value over the “investment in the policy.” Distributions taken under the systematic payout option are treated for tax purposes as withdrawals, not annuity payments. In general, loans, pledges, and collateral assignments as security for a loan are taxed in the same manner as withdrawals and surrenders. You may also be subject to current taxation if You make a gift of a nonqualified policy without valuable consideration. All taxable amounts received under a policy are subject to tax at ordinary rather than capital gain tax rates.

If Your policy contains an excess interest adjustment feature (also known as a market value adjustment), then Your Policy Value immediately before a policy withdrawal (or transaction taxed like a withdrawal) may have to be increased by any positive excess interest adjustments that result from the transaction. There is, however, no definitive guidance on the proper tax treatment of excess interest adjustments, and You may want to discuss the potential tax consequences of an excess interest adjustment with Your tax adviser.

The Code also provides that amounts received from the policy that are includible in gross income (including the taxable portion of some annuity payments and deductions from your policy to pay your financial intermediary) may be subject to a penalty tax. The amount of the penalty tax is equal to 10% of the amount that is includable in income. Some withdrawals and other amounts will be exempt from the penalty tax. Amounts received that are not subject to the penalty tax include, among others, any amounts: (1) paid on or after the taxpayer reaches age 59½; (2) paid after an Owner (or where the Owner is a non-natural person, an Annuitant) dies; (3) paid if the taxpayer becomes disabled (as that term is defined in the Code); (4) paid in a series of substantially equal payments made annually (or more frequently) over the life of the taxpayer or the joint life of the taxpayer and the taxpayer's designated beneficiary; (5) paid under an immediate annuity; or (6) which come from premium payments made prior to August 14, 1982. Regarding the disability exception, because we cannot verify that the Owner is disabled, we will report such withdrawals to the IRS as early withdrawals with no known exception from the penalty tax.

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

Aggregation

All nonqualified deferred annuity policies that are issued by us (or our affiliates) to the same Owner (policyholder) during the same calendar year are treated as one annuity for purposes of determining the amount includable in the Owner's income when a taxable distribution (other than annuity payments) occurs. If You are considering purchasing multiple policies from us (or our affiliates) during the same calendar year, You may wish to consult with Your tax adviser regarding how aggregation will apply to Your policies.

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Tax-Free Exchanges of Nonqualified Policies

We may issue the nonqualified policy in exchange for all or part of another annuity contract that You own. Such an exchange will be tax free if certain requirements are satisfied. If the exchange is tax free, Your investment in the policy immediately after the exchange will generally be the same as that of the annuity contract exchanged, increased by any additional premium payment made as part of the exchange. Your Policy Value immediately after the exchange may exceed Your investment in the policy. That excess may be includable in income should amounts subsequently be withdrawn or distributed from the policy (e.g., as a withdrawal, surrender, annuity income payment or death benefit).

If You exchange part of an existing contract for the policy, and within 180 days of the exchange You received a payment other than certain annuity payments (e.g., You take a withdrawal) from either contract, the exchange may not be treated as a tax free exchange. Rather, some or all of the amount exchanged into the policy could be includible in Your income and subject to a 10% penalty tax.

You should consult Your tax adviser in connection with an exchange of all or part of an annuity contract for the policy, especially if You may take a withdrawal from either contract within 180 days after the exchange.

Medicare Tax

Distributions from nonqualified annuity policies are considered “investment income” for purposes of the Medicare tax on investment income. Thus, in certain circumstances, a 3.8% tax may be applied to some or all of the taxable portion of distributions (e.g., earnings) to individuals, trusts, and estates whose income exceeds certain threshold amounts. We are required to report distributions taken from nonqualified annuity policies as being potentially subject to this tax. While distributions from qualified policies are not subject to the tax, such distributions may be includable in income for purposes of determining whether certain Medicare Tax thresholds have been met. As such, distributions from Your qualified policy could cause Your other investment income to be subject to the tax. Please consult a tax adviser for more information.

Same Sex Relationships

Same sex couples have the right to marry in all states. The parties to each marriage that is valid under the law of any state will each be treated as a spouse as defined in this policy. Individuals in other arrangements, such as civil unions, registered domestic partnerships, or other similar arrangements, that are treated as a valid marriage under the applicable state law, will each be treated as a spouse as defined in this policy for state law purposes. However, individuals in other arrangements that are not recognized as marriage under the relevant state law, will not be treated as married or as spouses as defined in this policy for federal tax purposes. Therefore, exercise of the spousal continuation provisions of this policy or any riders by individuals who do not meet the definition of “spouse” may have adverse tax consequences and/or may not be permissible. Please consult a tax adviser for more information on this subject.

Taxation of Death Benefit Proceeds

Amounts may be distributed from the policy because of Your death or the death of the Annuitant. Generally, such amounts should be includable in the income of the recipient: (1) if distributed in a lump sum, these amounts are taxed in the same manner as a surrender; (2) if distributed via withdrawals, these amounts are taxed in the same manner as surrenders; or (3) if distributed under an Annuity Payment Option, these amounts are taxed in the same manner as annuity payments.

Transfers, Assignments or Exchanges of Policies

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

Charges

It is possible that the IRS may take a position that fees for certain optional benefits (e.g., 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 withdrawal, which might also be subject to a tax penalty if the withdrawal occurs prior to age 59½. Although we do not believe that the fees associated with any optional benefit provided under the policy should be treated as taxable withdrawals, the tax rules associated with these benefits are unclear, and we advise that You consult Your tax adviser prior to selecting any optional benefit under the policy.

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Federal Estate, Gift and Generation-Skipping Transfer Taxes

The estate and gift tax unified credit basic exclusion amount is $10,000,000, subject to inflation adjustments (using the C-CPI-U), for taxable years beginning after December 31, 2017, and before January 1, 2026. The maximum rate is 40%.

The uncertainty as to how the current law might be modified in the future underscores the importance of seeking guidance from a competent 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.

Qualified Policies

The qualified policy is designed for use with several types of tax-qualified retirement plans which are briefly described below. The tax rules applicable to participants and beneficiaries in tax-qualified retirement plans vary according to the type of plan and the terms and conditions of the plan. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from contributions in excess of specified limits, distributions prior to age 59½ (subject to certain exceptions), distributions that do not conform to specified commencement and minimum distribution rules, and in other specified circumstances. The distribution rules under Section 72(s) of the Code do not apply to annuities provided under a plan described in Sections 401(a), 403(a), 403(b), 408 or 408A of the Code, but other similar rules may. Some retirement plans are subject to distribution and other requirements that are not incorporated into the policies or our policy administration procedures. Owners, employers, participants, and beneficiaries are responsible for determining that contributions, distributions, and other transactions with respect to the policies 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 withdrawals according to the requirements in the IRS regulations (minimum required distributions) must begin no later than April 1 of the calendar year following the calendar year in which the Annuitant attains age 70½; (v) an Annuity Payment Option with a period certain that will guarantee annuity payments beyond the life expectancy of the Annuitant and the beneficiary may not be selected; (vi) certain payments of death benefits must be made in the event the Annuitant dies prior to the distribution of the Policy Value; (vii) the entire interest of the Owner is non-forfeitable; and (viii) the premiums must not be fixed. Policies intended to qualify as traditional individual retirement annuities under Section 408(b) of the Code contain such provisions. Amounts in the individual retirement annuity (other than nondeductible contributions) generally are taxed only when distributed from the annuity. Distributions prior to age 59½ (unless certain exceptions apply) are subject to a 10% penalty tax.

SIMPLE and SEP IRAs are types of IRAs that allow employers to contribute to IRAs on behalf of their employees. SIMPLE IRAs permit certain small employers to establish SIMPLE plans as provided by section 408(p) of the Code, under which employees may elect to defer to a SIMPLE IRA a specified percentage of compensation. The sponsoring employer is required to make matching or non-elective contributions on behalf of employees. Distributions from SIMPLE IRAs are subject to the same restrictions that apply to IRA distributions. Subject to certain exceptions, distributions prior to age 59½ are subject to a 10 percent penalty tax, which is increased to 25 percent if the distribution occurs within the first two years after the commencement of the employee's participation in the plan. SEP IRAs permit employers to make contributions to IRAs on behalf of their employees, up to a specified dollar amount for the year and subject to certain eligibility requirements as provided by Section 408(k) of the Code. Distributions from SEP IRAs are subject to the same rules that apply to IRA distributions and are taxed as ordinary income.

The IRS has not reviewed this policy for qualification as a traditional IRA, SIMPLE IRA or SEP IRA, and has not addressed in a ruling of general applicability whether any death benefits available under the policy comport with qualification requirements.

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Roth Individual Retirement Annuities (Roth IRA). The Roth IRA, under Section 408A of the Code, contains many of the same provisions as a traditional IRA. However, there are some differences. First, the contributions are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA, a traditional IRA or other allowed qualified plan. A rollover from or conversion of an IRA to a Roth IRA may be subject to tax. The ability to make cash contributions to Roth IRAs is available to individuals with earned income and whose modified adjusted gross income is under a specified dollar amount for the year. Subject to special rules, the amount per individual that may be contributed to all IRAs (Roth and traditional) is an amount specified in the Code for the year. Secondly, the distributions are taxed differently. The Roth IRA offers tax-free distributions when taken 5 tax years after the first contribution to any Roth IRA of the individual and taken after one of the following: attaining age 59½, to pay for qualified first time home buyer expenses (lifetime maximum of $10,000), or due to death or disability. All other distributions are subject to income tax when taken from earnings and may be subject to a penalty tax unless an exception applies. Please note that specific tax ordering rules apply to Roth IRA distributions. Unlike the traditional IRA, there are no minimum required distributions during the Owner's lifetime; however, minimum required distributions at death are generally the same as for traditional IRAs.

The IRS has not reviewed this policy for qualification as a Roth IRA, and has not addressed in a ruling of general applicability whether any death benefits available under the policy comport with qualification requirements.

Section 403(b) Plans. Under Section 403(b) of the Code, payments made by public school systems and certain tax exempt organizations to purchase policies for their employees are generally excludable from the gross income of the employee, subject to certain limitations. However, such payments may be subject to Federal Insurance Contributions Act (FICA or Social Security) taxes. The policy includes a death benefit that in some cases may exceed the greater of the premium payments or the Policy Value. Additionally, in accordance with the requirements of the Code, Section 403(b) annuities generally may not permit distribution of (i) elective contributions made in years beginning after December 31, 1988, and (ii) earnings on those contributions, and (iii) earnings on amounts attributed to elective contributions held as of the end of the last year beginning before January 1, 1989, unless certain events have occurred. Specifically distributions of such amounts will be allowed only upon the death of the employee, on or after attainment of age 59½, severance from employment, disability, or financial hardship, except that income attributable to elective contributions may not be distributed in the case of hardship. These rules may prevent the payment of guaranteed withdrawals under a guaranteed lifetime withdrawal benefit prior to age 59½. For policies issued after 2008, amounts attributable to non-elective contributions may be subject to distribution restrictions specified in the employer's section 403(b) plan. Employers using the policy in connection with Section 403(b) plans may wish to consult with their tax adviser.

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

Pension and Profit-Sharing Plans. Sections 401(a) and 403(a) of the Code permit employers to establish various types of retirement plans for employees and self-employed individuals to establish qualified plans for themselves and their employees. Such retirement plans may permit the purchase of the policies to accumulate retirement savings. Adverse tax consequences to the plan, the participant or both may result if the policy is assigned or transferred to any individual as a means to provide benefit payments. Contributions to and distributions from such plans are limited by the Code and may be subject to penalties.

Deferred Compensation Plans. Section 457(b) of the Code, while not actually providing for a qualified plan as that term is normally used, provides for certain deferred compensation plans established and maintained by state and local governments (and their agencies and instrumentalities) and tax exempt organizations. Under such plans a participant may be able to specify the form of investment in which his or her participation will be made. For non-governmental Section 457(b) plans, all such investments, however, are typically owned by, and are subject to, the claims of the general creditors of the sponsoring employer. Depending on the terms of the particular plan, a non-government employer may be entitled to draw on deferred amounts for purposes unrelated to its Section 457(b) plan obligations. In general, all amounts received under a non-governmental Section 457 plan are taxable in the year paid (or in the year paid or made available in the case of a non-governmental 457(b) plan). Distributions from non-governmental 457(b) plans are subject to federal income tax withholding as wages, distributions from governmental 457(b) plans are subject to withholding as “eligible rollover distributions” as described in the section entitled “Withholding.” below. Contributions to and distributions from such plans are limited by the Code and may be subject to penalties. Deferred compensation plans of governments and tax-exempt entities that do not meet the requirements of Section 457(b) are taxed under Section 457(f), which means compensation deferred under the plan is included in gross income in the first year in which the compensation is not subject to substantial risk of forfeiture.

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Ineligible Owners-Qualified

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

Taxation of Surrenders and Withdrawals - Qualified Policies

In the case of a withdrawal under a qualified policy (other than from a deferred compensation plan under Section 457 of the Code), a pro rata portion of the amount You receive is taxable, generally based on the ratio of Your “investment in the policy” to Your total account balance or accrued benefit under the retirement plan. Your “investment in the policy” generally equals the amount of any non-deductible premium payments made by You or on Your behalf. If You do not have any non-deductible premium payments, Your investment in the contract will be treated as zero.

In addition, a penalty tax may be assessed on amounts surrendered from the policy prior to the date You reach age 59½, unless You meet one of the exceptions to this rule which are similar to the penalty exceptions for distributions from nonqualified policies discussed above. However, the exceptions applicable for qualified policies differ from those provided to nonqualified policies. You may wish to consult a tax adviser for more information regarding the application of these exceptions to Your circumstances. You may also be required to begin taking minimum distributions from the policy by a certain date. The terms of the plan may limit the rights otherwise available to You under the policy.

Qualified Plan Required Distributions

For qualified plans under Section 401(a), 403(a), 403(b), and 457, the Code requires that distributions generally must commence no later than the later of April 1 of the calendar year following the calendar year in which the Owner (or plan participant) (i) reaches age 70½ 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 70½. The actuarial present value of death and/or living benefit options and riders elected may need to be taken into account in calculating minimum required distributions. Consult a competent tax adviser before purchasing an optional living or death benefit.

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.

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.

Withholding

The portion of any distribution under a policy that is includable in gross income will be subject to federal income tax withholding unless the recipient of such distribution elects not to have federal income tax withheld. Election forms will be provided at the time distributions are requested or taken. The amount of withholding varies according to the type of distribution. The withholding rates applicable to the taxable portion of periodic payments (other than eligible rollover distributions) are the same as the withholding rates generally applicable to payments of wages. A 10% withholding rate applies to the taxable portion of non-periodic payments. Regardless of whether You elect not to have federal income tax withheld, You are still liable for payment of federal income tax on the taxable portion of the payment. For qualified policies taxable, “eligible rollover distributions” from Section 401(a) plans, Section 403(a) annuities, Section 403(b) tax-sheltered annuities, and governmental 457 plans are subject to a mandatory federal income tax withholding of 20%. An eligible rollover distribution is any distribution from such a plan, other than specified distributions such as distributions required by the Code, distributions in a specified annuity form or hardship distributions. The 20% withholding does not apply, however, to nontaxable distributions or if (i) the employee (or employee's spouse or former spouse as beneficiary or alternate payee) chooses a “direct rollover” from the plan to a tax-qualified plan, IRA, Roth IRA or 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.

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Annuity Purchases by Residents of Puerto Rico

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

Annuity Policies Purchased by Non-resident Aliens and Foreign Corporations

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

Foreign Account Tax Compliance Act (“FATCA”)

If the payee of a distribution from the policy is a foreign financial institution (“FFI”) or a non-financial foreign entity (“NFFE”) within the meaning of the Code as amended by the Foreign Account Tax Compliance Act (“FATCA”), the distribution could be subject to U.S. federal withholding tax on the taxable amount of the distribution at a 30% rate irrespective of the status of any beneficial Owner of the policy or the distribution. The rules relating to FATCA are complex, and a tax adviser should be consulted if an FFI or NFFE is or may be designated as a payee with respect to the policy.

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 Owners currently receive.

ADDITIONAL FEATURES

Systematic Payout Option

You can select at any time during the accumulation phase to receive regular withdrawals from Your policy by using the systematic payout option. Systematic withdrawals can be taken monthly, quarterly, semi-annually, or annually. Each withdrawal must be at least $40. Monthly and quarterly systematic withdrawals must generally be taken by electronic funds transfer directly to Your checking or savings account. There is no charge for this benefit.

Keep in mind that withdrawals under the systematic payout option may be taxable, and if taken before age 59½, may be subject to a 10% federal penalty tax.

Telephone and Electronic Transactions

Currently, certain transactions may be made by telephone or other electronic means acceptable to us upon our receipt of the appropriate authorization. We may discontinue this option at any time. To access information and perform transactions electronically, we require You to create an account with a username and password, and to maintain a valid e-mail address.

We will not be liable for following instructions communicated by telephone or electronically we reasonably believe to be genuine. We will employ reasonable procedures to confirm that instructions we receive are genuine. Our procedures require You to provide information to verify Your identity when You call us and we will record conversations with You. We may also require written confirmation of the request. When someone contacts our Administrative Office and follows our procedures, we will assume You are authorizing us to act upon those instructions. For electronic transactions through the internet, You will need to provide Your username and password. You are responsible for keeping Your password confidential and must notify us of any loss, theft or unauthorized use of Your password.

Telephone and other electronic transactions must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Transactions received in good order on non-market days or after our close of business on market days will get next-day pricing. See OTHER INFORMATION – Sending Forms and Transaction Requests in Good Order. Please note that the telephone and/or electronic device transactions may not always be available. Any telephone, fax

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machine or other electronic device, whether it is Yours, Your service provider's, or Your financial representative(s) can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of Your request if the volume of transactions is unusually high, we might not have anyone available, or lines available, to take Your transaction. Although we have taken precautions to limit these problems, we cannot promise complete reliability under all circumstances. If You are experiencing problems, You should make Your request by writing to our Administrative Office.

We reserve the right to revoke Your telephone and other electronic transaction privileges at any time without revoking all Owners' privileges. We may deny telephone and electronic transaction privileges to market timers or disruptive traders.

Dollar Cost Averaging Program

During the accumulation phase, You may instruct us to automatically make transfers into one or more Subaccounts in accordance with Your allocation instructions. This is known as Dollar Cost Averaging. While Dollar Cost Averaging buys more Accumulation Units when prices are low and fewer Accumulation Units when prices are high, it does not guarantee profits or assure that You will not experience a loss.

You may specify the dollar amount to be transferred and the number of transfers, or just the number of transfers, in which case we will calculate the amount to be transferred. Unless a specified date is requested, the date will begin as soon as the program is started. A minimum of $500 per transfer is required. You can elect to transfer from the money market or other specified Subaccount. If only the number of transfers is provided, we will transfer 100% of the remaining value in the elected source fund for the final transfer. If a specified dollar amount is provided with the number of transfers You must choose if You want to transfer all remaining value out of the source fund or if You would like any remaining value to stay within the Subaccount.

Unless a specific date is requested, the Dollar Cost Averaging program will begin the next Business Day after we have received in good order all necessary information and the minimum required amount. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order. Dollar Cost Averaging can be set up on any day of the month except the 29^th, 30^th or 31^st. If the 29^th, 30^th, or 31^st) is requested as the start date the Dollar Cost Averaging will start on the 1^st of the following month. If we receive additional premium payments while a Dollar Cost Averaging program is running and You instruct us to add it to the Dollar Cost Averaging program, the amount of the Dollar Cost Averaging transfers will increase proportionally.

NOTE CAREFULLY:

New Dollar Cost averaging instructions are required to start a new Dollar Cost Averaging program once the previous Dollar Cost Averaging program has completed. Additional premium payments, absent new allocation instructions, received after a Dollar Cost Averaging program has completed, will be allocated according to the current premium payment allocations at that time but will not reactivate a completed Dollar Cost Averaging program.

IF:

•	we do not receive all necessary information to begin or restart a Dollar Cost Averaging program

THEN:

•	any amount allocated to a variable source will be invested and will remain in that variable investment option; and
•	new Dollar Cost Averaging instructions will be required to begin a Dollar Cost Averaging program.

You should consider Your ability to continue a Dollar Cost Averaging program during all economic conditions. A Dollar Cost Averaging program can be used in conjunction with Asset Rebalancing. Any amount in the Dollar Cost Averaging source account is ignored for the purposes of Asset Rebalancing. There is no charge for this benefit.

The Dollar Cost Averaging Program may vary for certain policies and may not be available for all policies, in all states or at all times. We reserve the right to terminate the availability of any Dollar Cost Averaging program at any time.

Asset Rebalancing

During the accumulation phase You can instruct us to automatically rebalance the amounts in Your Subaccounts to maintain Your desired asset allocation. This feature is called asset rebalancing and can be started and stopped at any time. If a transfer is requested, we will honor the requested transfer and discontinue asset rebalancing. New instructions are required to start asset rebalancing. You can choose to rebalance monthly, quarterly, semi-annually, or annually. . There is no charge for this benefit. We reserve the right to terminate the availability of any asset rebalancing program at any time.

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OTHER INFORMATION

State Variations

The following section describes modifications to this prospectus required by one or more state insurance departments as of the date of this prospectus. Unless otherwise noted, variations apply to all forms of policies we issue. References to certain state's variations do not imply that we actually offer policies in each such state. These variations are subject to change without notice and additional variations may be imposed as specific states approve new riders. The Company will amend this prospectus upon notification of any additional variations received from one or more state insurance departments.

California. Right to Cancel: The policy may be canceled by returning the policy. A refund will be paid within 30 days from the date notice of cancellation was received and refund will include any fees or charges. Owners age 60 or above have a 30 day right to cancel period. Owners age 60 or above also have the option to elect immediate investment in investment options of their choice, and receive Policy Value if they cancel; or, they may allocate the initial premium payment to the money market portfolio for 35 calendar days at the end of which the Policy Value is moved to the investment options of their choice, and they would receive return of premium if they cancel.

Florida. Right to Cancel: Owners have a 21 day right to cancel period and will receive return of premium. Annuity Commencement Date: The Annuity Commencement Date is not allowed until after the first Policy Year.

New York. Right to Cancel: Under the right to cancel provision the Policy Value in the separate account, including any fees and charges is returned. If the policy is a replacement, the right to cancel period is extended to 60 days. Annuitization: The Policy Value is used upon Annuitization. Annuity Commencement Date: The Annuity Commencement Date cannot be earlier than the first policy anniversary.

North Dakota. Right to Cancel: Right to cancel period is 20 days.

Ownership

You, as Owner of the policy, exercise all rights under the policy. You can generally change the Owner at any time by notifying us in writing at our Administrative Office. If we do not have an originating signature or guaranteed signature on file or if the Company suspects fraud, we may require a notarized signature. There may be limitations on Your ability to change the ownership of a qualified policy. An ownership change may be a taxable event.

Beneficiary

The beneficiary designation will remain in effect until changed. The Owner may change the designated beneficiary by sending us Written Notice. The beneficiary's consent to such change is not required unless the beneficiary was irrevocably designated or law requires consent. (If an irrevocable beneficiary dies, the Owner may then designate a new beneficiary.) We will not be liable for any payment made before the Written Notice is received in our Administrative Office. If more than one beneficiary is designated, and the Owner fails to specify their interests, they will share equally. If, upon the death of the Annuitant, there is a surviving Owner(s), then the surviving Owner(s) automatically takes the place of any beneficiary designation.

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 to 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 or federal tax regulations require we will refund Your original premium payment(s), or surrender value, if greater. 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.

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Termination for Low Value

If a withdrawal or fee (including an optional rider fee, administrative fee, or Owner transaction fee) reduces Your Policy Value below the minimum specified in Your policy, we reserve the right to terminate Your policy and send You a full distribution of Your remaining Policy Value. All benefits associated with Your annuity policy will be terminated. Federal law may impose restrictions on our right to terminate certain qualified policies. We do not currently anticipate exercising this right if You have certain optional benefits, however, we reserve the right to do so.

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 Owners (exactly as registered on the Policy) if necessary; Social Security Number or Taxpayer I.D.; and any other information or supporting documentation that we may require, including any spousal or joint Owner's consents. With respect to purchase requests, “good order” also generally includes receipt of sufficient funds to effect the purchase. We may, in our sole discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirements at any time.

“Received” or receipt in good order generally means that everything necessary must be received by us, at our Administrative Office specified in the Glossary of Terms. We reserve the right to reject electronic transactions that do not meet our requirements.

Regulatory Modifications to Policy

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

Certain Offers

From time to time, we have (and we may again) offered You some form of payment or incentive in return for terminating or modifying certain guaranteed benefits.

When we make an offer, we may vary the offer amount, up or down, among the same group of policy Owners based on certain criteria such as Policy Value, the difference between Policy Value and any applicable benefit base, investment allocations and the amount and type of withdrawals taken. For example, for guaranteed benefits that have benefit bases that can be reduced on either a pro rata or dollar-for-dollar basis depending on the amount of withdrawals taken, we may consider whether You have taken any withdrawal that has caused a pro rata reduction in Your benefit base, as opposed to a dollar-for-dollar reduction. Also, we may increase or decrease offer amounts from offer to offer. In other words, we may make an offer to a group of policy Owners based on an offer amount, and, in the future, make another offer based on a higher or lower offer amount to the remaining policy Owners in the same group.

If You accept an offer that requires You to terminate a guaranteed benefit and You retain Your policy, we will no longer charge You for the benefit, and You will not be eligible for any future offers related to that type of guaranteed benefit, even if such future offer would have included a greater offer amount or different payment or incentive.

We may also make an offer to You to exchange an existing rider for a different rider.

Mixed and Shared Funding

The underlying fund portfolios may serve as investment vehicles for variable life insurance policies, variable annuity policies and retirement plans (“mixed funding”) and shares of the underlying fund portfolios also may be sold to Separate Accounts of other insurance companies (“shared funding”). While we currently do not foresee any disadvantages to Owners and participants arising from either mixed or shared funding, it is possible that the interests of Owners of various policies and/or participants in various plans for which the underlying fund portfolios serve as investments might at some time be in conflict. We and each underlying fund portfolio’s Board of Directors intend to monitor events in order to identify any material conflicts and to determine what action, if any, to take. Such action could include the sale of underlying fund portfolio shares by one or more of the Separate Accounts, which could have adverse consequences. Such action could also include a decision that separate funds should be established for variable life and variable annuity Separate Accounts. In such an event, we would bear the attendant expenses, but Owners and plan participants would

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no longer have the economies of scale resulting from a larger combined fund. Please read the prospectuses for the underlying fund portfolios, which discuss the underlying fund portfolios’ risks regarding mixed and shared funding, as applicable. Please see Voting Rights section below for how shares held by the Company would be voted.

Exchanges and/or Reinstatements

You can generally exchange a nonqualified annuity policy for another in a “tax-free exchange” under Section 1035 of the Internal Revenue Code or transfer qualified policies directly to another life insurance company as a “trustee-to-trustee transfer”. Before making an exchange or transfer, You should compare both annuities carefully. Remember that if You exchange or transfer another annuity for the one described in this prospectus, then You may pay a surrender charge on the other annuity and other charges may be higher (or lower) and the benefits under this annuity may be different. You should not exchange or transfer another annuity for this one unless You determine, after knowing all the facts, that the exchange or transfer is in Your best interest and not just better for the person trying to sell You this policy (that person will generally earn a commission if You buy this policy through an exchange, transfer or otherwise).

You may ask us to reinstate Your policy after such an exchange, transfer, withdrawal, or surrender and in certain limited circumstances we will allow You to do so by returning the same total dollar amount of funds distributed to the applicable investment options. The dollar amount will be used to purchase new Accumulation Units at the then current price. In the event any Subaccount previously invested in is closed and we don’t receive additional instructions, funds will be reallocated to the remaining available investment options according to the investment allocation instructions You previously provided. Because of changes in market value, Your new Accumulation Units may be worth more or less than the units You previously owned. Generally, unless You return the original company check, Your annuity policy is nonqualified and a portion of the prior withdrawal was taxable, we are required to report the taxable amount from the distribution to the IRS even though the funds have been reinstated. The cost basis will be adjusted accordingly. The taxable amount will be reported on Form 1099-R which You will receive in January of the year following the distribution. We recommend that You consult a tax professional to explain the possible tax consequences of reinstatements.

Voting Rights

To the extent required by law, we will vote all shares of the underlying fund portfolios held in the Separate Account in accordance with instructions we receive from You and/or other individuals that have voting interests in the portfolios. We will send You and/or other individuals 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 Owners (assuming there is a quorum) to determine the outcome of a vote, especially if they have large Policy Values. If, however, we determine that we are permitted to vote the shares in our own right, we may do so. Shares owned by the insurance company and its affiliates will also be proportionately voted.

Each person having a voting interest 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 or on our ability to meet our obligations under the policy.

The Company was the subject of inquiries and remains under audits and market conduct examinations with a 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, and administrative penalties. The Company previously implemented changes

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in the procedures for the identification of unreported claims and handling of escheatable property to comply with the terms of regulatory agreements and newly adopted laws and regulations. The Company does not believe that any regulators actions or agreements that result from these audits and examinations will have a material adverse impact on our ability to meet our obligations.

Cyber Security

Our operations support complex transactions and are highly dependent on the proper functioning of information technology and communication systems. Any failure of our information technology or communications systems may result in a material adverse effect on our results of operations and corporate reputation.

Any failure of or gap in the systems and processes necessary to support complex transactions and avoid systems failure, fraud, information security failures, processing errors, cyber intrusion, loss of data and breaches of regulation may lead to a materially adverse effect on our results of operations and corporate reputation. In addition, we must commit significant resources to maintain and enhance its existing systems in order to keep pace with applicable regulatory requirements, industry standards and customer preferences. If we fail to maintain secure and well-functioning information systems, we may not be able to rely on information for product pricing, compliance obligations, risk management and underwriting decisions. In addition, we cannot assure investors or consumers that interruptions, failures or breaches in security of these processes and systems will not occur, or if they do occur, that they can be timely detected and remediated. The occurrence of any of these events may have a materially adverse effect on our businesses, results of operations and financial condition.

A computer system failure or security breach may disrupt our business, damage our reputation and adversely affect our results of operations, financial condition and cash flows.

We rely heavily on computer and information systems and internet and network connectivity to conduct a large portion of our business operations. This includes the need to securely store, process and transmit confidential information, including personal information, through a number of complex systems. In many cases this also includes transmission and processing to or through commercial customers, business partners and third-party service providers. The introduction of new technologies, computer system failures, cyber-crime attacks or security or privacy breaches may materially disrupt our business operations, damage our reputation, result in regulatory and litigation exposure, investigation and remediation costs, and materially and adversely affect our results of operations, financial condition and cash flows.

The information security risk that we face includes the risk of malicious outside forces using public networks and other methods, including social engineering and the exploitation of targeted offline processes, to attack our systems and information. It also includes inside threats, both malicious and accidental. For example, human error and lack of sufficiently automated processing can result in improper information exposure or use. We also face risk in this area due to its reliance in many cases on third-party systems, all of which may face cyber and information security risks of their own. Third-party administrators or distribution partners used by us or our subsidiaries may not adequately secure their own information systems and networks, or may not adequately keep pace with the dynamic changes in this area. Potential bad actors that target us and our applicable third parties may include, but are not limited to, criminal organizations, foreign government bodies, political factions, and others.

In recent years information security risk has increased sharply due to a number of developments in how information systems are used by companies such as us, but also by society in general. Threats have increased as criminals and other bad actors become more organized and employ more sophisticated techniques. At the same time companies increasingly make information systems and data available through the internet, mobile devices or other network connections to customers, employees and business partners, thereby expanding the attack surface that bad actors can exploit.

Large, global financial institutions such as us have been, and will continue to be subject to information security attacks for the foreseeable future. The nature of these attacks will also continue to be unpredictable, and in many cases may arise from circumstances that are beyond our control. If we fail to adequately invest in defensive infrastructure, technology and processes or to effectively execute against its information security strategy, it may suffer material adverse consequences.

To date the highest impact information security incidents that we have experienced are believed to have been the result of e-mail phishing attacks targeted at our business partners and commercial customers. This in turn led to unauthorized use of valid our website credentials to engage in fraudulent transactions and improper data exfiltration. Additionally, we have also faced other types of attacks, including but not limited to other types of phishing attacks and distributed denial of service (DDoS) attacks. Although to our knowledge these events have thus far not been material in nature, our management believes that significant investment will be required to establish and maintain adequate information security systems that are capable of addressing the possibility of these types of attacks, as well as for the possibility of more significant and sophisticated information security attacks, in the future. There is no guarantee that the measures that we take will be sufficient to stop all types of attacks or mitigate all types of information security or privacy risks.

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We maintain cyber liability insurance to help decrease the impact of cyber-attacks and information security events, subject to the terms and conditions of the policy, however such insurance may not be sufficient to cover all applicable losses that we may suffer.

A breach of data privacy or security obligations may disrupt our business, damage our reputation and adversely affect financial conditions and results of operations.

Pursuant to applicable laws, various government agencies and independent administrative bodies have established numerous rules protecting the privacy and security of personal information and other confidential information held by us. For example, certain of our businesses are subject to laws and regulations enacted by U.S. federal and state governments, the E.U. or other non-U.S. jurisdictions and/or enacted by various regulatory organizations relating to the privacy and/or security of the information of customers, employees or others. Effective May 25, 2018, the General Data Protection Regulation (GDPR) took effect in the E.U. Compared to the previous directive, the GDPR, among other things, increased compliance obligations, impacted our businesses’ collection, processing and retention of personal data and reporting of data breaches, and provides for significantly increased penalties for non-compliance. The New York Department of Finance Services (NYDFS), pursuant to its cybersecurity regulation, requires financial institutions regulated by the NYDFS, including certain Aegon subsidiaries, to, among other things, satisfy an extensive set of minimum cyber security requirements, including but not limited to governance, management, reporting, policy, technology and control requirements. Numerous other U.S. laws also impose various information security and privacy related obligations with respect to various Aegon subsidiaries operating in the U.S., including but not limited to the Gramm-Leach-Bliley Act and related state laws (GLBA), and the Health Insurance Portability and Accountability Act (HIPAA), among many others. Other legislators and regulators with jurisdiction over our businesses are considering potential enhanced information security risk management and privacy rules and regulations. A number of Aegon’s subsidiaries are also subject to our systems, employees and business partners have access to, and routinely process, the personal information of consumers. We rely on various processes and controls to protect the confidentiality, integrity and availability of personal information and other confidential information that is accessible to, or in the possession of, us, our systems, employees and business partners. It is possible that an employee, business partner or system could, intentionally or unintentionally, inappropriately disclose or misuse personal or confidential information. Our data or data in our possession could also be the subject of an unauthorized cyber intrusion or cybersecurity attack. If we fail to maintain adequate processes and controls or if we or our business partners fail to comply with relevant laws and regulations, policies and procedures, misappropriation or intentional or unintentional inappropriate disclosure or misuse of personal information or other confidential information could occur. Such control inadequacies or non-compliance could cause disrupted operations and misstated or unreliable financial data, materially damage our reputation or lead to increased regulatory scrutiny or civil or criminal penalties or litigation, which, in turn, could have a material adverse effect on our business, financial condition and results of operations. In addition, we analyze personal information and customer data to better manage our business, subject to applicable laws and regulations and other restrictions. It is possible that additional regulatory or other restrictions regarding the use of such techniques may be imposed. Additional privacy and security obligations have been imposed by various governments with jurisdiction over Aegon or its subsidiaries in recent years, and more such obligations are likely to be imposed in the near future. Such restrictions and obligations could have material impacts on our business, financial conditions and/or results of operations.

For a complete description regarding Transamerica’s policies for its websites, including the Privacy Policy and Terms of Use for such websites, please visit: www.transamerica.com/individual/privacy-policy and www.transamerica.com/individual/terms-of-use.

Information About Us

We are engaged in the sale of life and health insurance and annuity policies. Transamerica Life Insurance Company was incorporated under the laws of the State of Iowa on April 19, 1961 as NN Investors Life Insurance Company Inc., and is licensed in all states except New York and the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands. Transamerica Financial Life Insurance Company was incorporated under the laws of the State of New York on October 3, 1947 and is licensed in all states and the District of Columbia. We are a wholly-owned indirect subsidiary of Transamerica Corporation which conducts most of its operations through subsidiary companies engaged in the insurance business or in providing non-insurance financial services. All of the stock of Transamerica Corporation is indirectly owned by Aegon 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.

All obligations arising under the policies, including the promise to make annuity payments, are general corporate obligations of ours and subject to our claims paying ability. Accordingly, no financial institution, brokerage firm or insurance agency is responsible for our financial obligations arising under the policies.

Financial Condition

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 are not assured and depend upon certain factors discussed below.

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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. Any guarantees under a policy that exceed policy value, such as those associated with 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.

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. In addition, we hedge our investments in our general account, and may require purchasers of certain of the variable insurance products that we offer to allocate premium payments and Policy Value in accordance with specified investment requirements. However, it is important to note that there is no guarantee that we will always be able to meet our claims-paying obligations, and that there are risks to purchasing any insurance product.

State insurance regulators also require insurance companies to maintain a minimum amount of capital, which acts as a cushion in the event that the insurer suffers a financial impairment, based on the inherent risks in the insurer’s operations. These risks include those associated with losses that we may incur as the result of defaults on the payment of interest or principal on our general account assets, which include bonds, mortgages, general real estate investments, and stocks, as well as the loss in market value of these investments. We may also experience liquidity risk if our general account assets cannot be readily converted into cash to meet obligations to our policy Owners or to provide the collateral necessary to finance our business operations.

How to Obtain More Information. We encourage 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 Insurance as well as the financial statements of the Separate Account are located in the Statement of Additional Information (SAI). For a free copy of the SAI, simply call or write us at the phone number or address of our Administrative Office referenced in this prospectus. In addition, the SAI is available on the SEC’s website at www.sec.gov. Our financial strength ratings which reflect the opinions of leading independent rating agencies of our ability to meet our obligations to our policy Owners, are available on our website (www.transamerica.com/individual/what-we-do/about-us/financial-strength/), and the websites of these nationally recognized statistical ratings organizations – A.M. Best Company (www.ambest.com), Moody’s Investors Service (www.moodys.com), Standard & Poor’s Rating Services (www.standardandpoors.com) and Fitch, Inc. (www.fitchratings.com).

The Separate Account

Each Separate Account receives and invests the premium payments that are allocated to it for investment in shares of the underlying fund portfolios. Each Separate Account is registered with the SEC as a unit investment trust under the 1940 Act. However, the SEC does not supervise the management, the investment practices, or the policies of the Separate Account or us. Income, gains and losses (whether or not realized), from assets allocated to the Separate Account are, in accordance with the policies, credited to or charged against the Separate Account without regard to our other income, gains or losses.

The assets of each Separate Account are held in our name on behalf of the Separate Account and belong to us. However, those assets that underlie the policies are not chargeable with liabilities arising out of any other business we may conduct. The Separate Account may include other Subaccounts that are not available under these policies. We do not guarantee the investment results of the Separate Account.

The Underlying Fund Portfolios

At the time You purchase Your policy, You may allocate Your premium payment to Subaccounts. These are subdivisions of our Separate Account, an account that keeps Your policy assets separate from our company assets. The Subaccounts then purchase shares of underlying fund portfolios set up exclusively for variable annuity or variable life insurance products. These are not the same mutual funds that You buy through Your investment professional even though they may have similar investment strategies and the same portfolio managers. Each underlying fund portfolio has varying degrees of investment risk. Underlying fund portfolios are also subject to separate fees and expenses such as management fees and operating expenses. “Master-feeder” or “fund of funds” invest substantially

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all of their assets in other mutual funds and will therefore bear a pro-rata share of fees and expenses incurred by both funds. This will reduce Your investment return. Read the underlying fund portfolio prospectuses carefully before investing. We do not guarantee the investment results of any underlying fund portfolio. Certain underlying fund portfolios may not be available in all states and in all share classes. Please see “Appendix - Underlying Fund Portfolios Associated with the Subaccounts” for additional information.

Other Transamerica Policies

We offer a variety of fixed and variable annuity policies. They may offer features, including investment options, and have fees and charges, that are different from those in the policy offered by this prospectus. Not every policy we issue is offered through every financial intermediary. Some financial intermediaries may not offer and/or limit the offering of certain features or options, as well as limit the availability of the policies, based on issue age, or other criteria established by the financial intermediary. Upon request, Your financial professional can show You information regarding other Transamerica annuity policies that he or she distributes. You can also contact us to find out more about the availability of any of the Transamerica annuity policies.

You should work with Your financial professional to decide whether this policy is appropriate for You based on a thorough analysis of Your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance.

Distribution of the Policies

There are no commission payments made by us to any investment advisor or broker-dealer (a “financial intermediary”) for the sale of this policy. If You have a financial intermediary who charges You a fee to manage Your assets, any advisory or other ongoing fee payment is set by the financial intermediary, and is independent of us. Any such fee payments are covered in a separate agreement between You and Your financial intermediary, and are in addition to the fees and expenses described in this prospectus. Any advisory or other ongoing fee payment is set by the financial intermediary and is independent of us. We are not responsible for any issues or disputes that arise out of any fee arrangement between You and any financial intermediary. We have not made any independent investigation of any financial intermediary nor do we endorse any financial intermediary or make any representations regarding their qualifications.

If You have a fee deducted directly from the policy to pay a financial intermediary, You will be required to provide written authorization to us and Your Policy Value will be reduced when the payments are deducted. The fee will no longer be available for deduction after the policy is annuitized. There may be tax consequences if You have a fee deducted directly from Your policy to pay a financial intermediary, however, such deductions from Your policy may not be treated as a taxable distribution if certain conditions are met. You should consult Your tax advisor. You should consider whether paying such fees from another source might be more appropriate for You.

TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION

Glossary of Terms

The Policy - General Provisions

Investment Experience

Performance

Historical Performance Data

Published Ratings

State Regulation of Us

Administration

Records and Reports

Distribution of the Policies

Voting Rights

Other Products

Custody of Assets

Independent Registered Public Accounting Firm

Other Information

Financial Statements

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APPENDIX

UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS

The following is a list of current underlying fund portfolios available under the policy, which are subject to change as discussed in this prospectus.

SUBACCOUNT ⁽¹⁾	UNDERLYING FUND PORTFOLIO	ADVISOR/SUB-ADVISER
DFA INVESTMENT DIMENSIONS GROUP INC.
DFA VA Equity Allocation Portfolio	DFA VA Equity Allocation Portfolio	Dimensional Fund Advisors LP
Investment Objective: To achieve long-term capital appreciation.
DFA VA Global Bond Portfolio - Institutional Class	DFA VA Global Bond Portfolio - Institutional Class	Dimensional Fund Advisors LP
Investment Objective: Provide a market rate of return for a fixed income portfolio with low relative volatility of returns.
DFA VA Global Moderate Allocation Portfolio	DFA VA Global Moderate Allocation Portfolio	Dimensional Fund Advisors LP
Investment Objective: To see total return consisting of capital appreciation and current income.
DFA VA International Small Portfolio	DFA VA International Small Portfolio	Dimensional Fund Advisors LP
Investment Objective: To achieve long-term capital appreciation.
DFA VA International Value Portfolio	DFA VA International Value Portfolio	Dimensional Fund Advisors LP
Investment Objective: To achieve long-term capital appreciation.
DFA VA Short-Term Fixed Portfolio	DFA VA Short-Term Fixed Portfolio	Dimensional Fund Advisors LP
Investment Objective: To achieve a stable real return in excess of the rate of inflation with minimum risk.
DFA VA U.S. Large Value Portfolio	DFA VA U.S. Large Value Portfolio	Dimensional Fund Advisors LP
Investment Objective: To achieve long-term capital appreciation.
DFA VA U.S. Targeted Value Portfolio	DFA VA U.S. Targeted Value Portfolio	Dimensional Fund Advisors LP
Investment Objective: To achieve long-term capital appreciation.
VANGUARD ^® VARIABLE INSURANCE FUND
Vanguard VIF Balanced Portfolio	Vanguard VIF Balanced Portfolio	Wellington Management Company, LLP
Investment Objective: To provide long-term capital appreciation and reasonable current income.
Vanguard VIF Capital Growth Portfolio	Vanguard VIF Capital Growth Portfolio	PRIMECAP Management Company
Investment Objective: To provide long-term capital appreciation.
Vanguard VIF Conservative Allocation Portfolio	Vanguard VIF Conservative Allocation Portfolio	The Vanguard Group, Inc.
Investment Objective: To provide current income and low to moderate capital appreciation.
Vanguard VIF Diversified Value Portfolio	Vanguard VIF Diversified Value Portfolio	Barrow, Hanley, Mewhinney, & Strauss, LLC
Investment Objective: To provide long-term capital appreciation and income.
Vanguard VIF Equity Income Portfolio	Vanguard VIF Equity Income Portfolio	Wellington Management Company, LLP and Vanguard's Equity Investment Group
Investment Objective: To provide an above-average level of current income and reasonable long-term capital appreciation.
Vanguard VIF Equity Index Portfolio	Vanguard VIF Equity Index Portfolio	Wellington Management Company, LLP and Vanguard's Equity Investment Group
Investment Objective: Seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks.
Vanguard VIF Global Bond Index Portfolio	Vanguard VIF Global Bond Index Portfolio	The Vanguard Group, Inc.
Investment Objective: Seeks to track the performance of a benchmark index that measures the investment return of the global, investment-grade, fixed income market.
Vanguard VIF Growth Portfolio	Vanguard VIF Growth Portfolio	Jackson Square Partners, Wellington Management Company, LLP
Investment Objective: Seeks to provide long-term capital appreciation.
Vanguard VIF High Yield Bond Portfolio	Vanguard VIF High Yield Bond Portfolio	Wellington Management Company, LLP
Investment Objective: Seeks to provide a high level of current income.
Vanguard VIF International Portfolio	Vanguard VIF International Portfolio	Baillie Gifford Overseas Ltd., M&G Investment Management Limited, and Schroder Investment Management North America Inc.
Investment Objective: Seeks to provide long-term capital appreciation.
Vanguard VIF Mid-Cap Index Portfolio	Vanguard VIF Mid-Cap Index Portfolio	Vanguard Equity Investment Group
Investment Objective: Seeks to track the performance of a benchmark index that measures the investment return of mid-capitalization stocks.
Vanguard VIF Moderate Allocation Portfolio	Vanguard VIF Moderate Allocation Portfolio	The Vanguard Group, Inc.
Investment Objective: Seeks to provide capital appreciation and a low to moderate level of current income.
Vanguard VIF Money Market Portfolio	Vanguard VIF Money Market Portfolio	Vanguard's Fixed Income Group
Investment Objective: Seeks to provide current income while maintaining liquidity and a stable share price of $1.

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UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS — (Continued)

SUBACCOUNT ⁽¹⁾	UNDERLYING FUND PORTFOLIO	ADVISOR/SUB-ADVISER
Vanguard VIF Real Estate Index Portfolio	Vanguard VIF Real Estate Index Portfolio	Vanguard Equity Investment Group
Investment Objective: Seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of a benchmark index that measures the performance of publicly traded equity REIT's.
Vanguard VIF Short-Term Investment-Grade Portfolio	Vanguard VIF Short-Term Investment-Grade Portfolio	Vanguard's Fixed Income Group
Investment Objective: Seeks to provide current income while maintaining limited price volatility.
Vanguard VIF Total Bond Market Index Portfolio	Vanguard VIF Total Bond Market Index Portfolio	Vanguard's Fixed Income Group
Investment Objective: Seeks to track the performance of a broad, market-weighted bond index.
Vanguard VIF Total International Stock Market Index Portfolio	Vanguard VIF Total International Stock Market Index Portfolio	The Vanguard Group, Inc.
Investment Objective: Seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in developed and emerging markets, excluding the United States.
Vanguard VIF Total Stock Market Index Portfolio	Vanguard VIF Total Stock Market Index Portfolio	The Vanguard Group, Inc.
Investment Objective: Seeks to track the performance of a benchmark index that measures the investment return of the overall stock market.

⁽¹⁾	Some Subaccounts may be available for certain policies and may not be available for all policies. You should work with Your financial intermediary to decide which Subaccount(s) may be appropriate for you based on a thorough analysis of your particular insurance needs, financial objective, investment goals, time horizons, and risk tolerance.
⁽²⁾	There can be no assurance that any money market portfolio offered under this policy will be able to maintain a stable net asset value per share during extended periods of low interest rates, and partly as a result of policy charges, the yield on the money market Subaccount may become extremely low and possibly negative.

* All underlying fund portfolios in the Transamerica Series Trust are advised by Transamerica Asset Management. The entities listed are the sub-advisers unless otherwise indicated.

Certain Subaccounts may not be available in all states, at all times or through all financial intermediaries. We may discontinue offering any Subaccount at any time. In some cases, a Subaccount not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a Subaccount, please contact Your financial intermediary or our Administrative Office.

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APPENDIX

Designated Investment Options

The table below identifies the Designated Investment Options available for use with the Return of Premium Death Benefit.

	Return of Premium Death Benefit
Subaccounts
DFA VA Equity Allocation Portfolio	√
DFA VA Global Bond Portfolio - Institutional Class	√
DFA VA Global Moderate Allocation Portfolio	√
DFA VA International Small Portfolio	√
DFA VA International Value Portfolio	√
DFA VA Short-Term Fixed Portfolio	√
DFA VA U.S. Large Value Portfolio	√
DFA VA U.S. Large Value Portfolio	√
Vanguard VIF Balanced Portfolio	√
Vanguard VIF Capital Growth Portfolio	√
Vanguard VIF Conservative Allocation Portfolio	√
Vanguard VIF Diversified Value Portfolio	√
Vanguard VIF Equity Income Portfolio	√
Vanguard VIF Equity Index Portfolio	√
Vanguard VIF Global Bond Index Portfolio	√
Vanguard VIF Growth Portfolio	√
Vanguard VIF High Yield Bond Portfolio	√
Vanguard VIF International Portfolio	√
Vanguard VIF Mid-Cap Index Portfolio	√
Vanguard VIF Moderate Allocation Portfolio	√
Vanguard VIF Money Market Portfolio	√
Vanguard VIF Real Estate Index Portfolio	√
Vanguard VIF Short-Term Investment-Grade Portfolio	√
Vanguard VIF Total Bond Market Index Portfolio	√
Vanguard VIF Total International Stock Market Index Portfolio	√
Vanguard VIF Total Stock Market Index Portfolio	√

Certain designated investment options may not be available in all states, at all times or through all financial intermediaries. We may discontinue offering any designated investment option at any time. In some cases, a designated investment option not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a designated investment option, please contact Your financial intermediary or our Administrative Office.

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APPENDIX

CONDENSED FINANCIAL INFORMATION

Because the Subaccounts in the policy offered under this Transamerica Advisory Annuity prospectus had not yet been sold or commenced operations as of December 31, 2018, no class of Accumulation Units have yet been derived. Accordingly, no condensed financial information is available as of the date of this Transamerica Advisory Annuity prospectus.

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APPENDIX

Death Benefit

Adjusted Withdrawals. If You take a 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 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

W= withdrawal

DP = Death Proceeds prior to the withdrawal = greatest of PV or GMDB

PV = Policy Value prior to the withdrawal

GMDB = guaranteed minimum death benefit 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

W = $15,494

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

Summary:
Reduction in guaranteed minimum death benefit	=$23,241
Reduction in Policy Value	=$15,494
New guaranteed minimum death benefit amount	=$51,759
New Policy Value (after withdrawal)	=$34,506

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

Example 2: Death Proceeds Equal to Policy Value

Assumptions:

GMDB = $50,000

PV = $75,000

DP = $75,000

W = $15,494

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

Summary:
Reduction in guaranteed minimum death benefit	=$15,494
Reduction in policy value	=$15,494
New guaranteed minimum death benefit amount	=$34,506
New policy value (after withdrawal)	=$59,506

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

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

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Death Benefit — (Continued)

Hypothetical Example

In this example, certain death benefit values at various points in time are depicted based on hypothetical assumed rates of performance. This example is for illustrative purposes only and assumes a single $100,000 premium payment by a sole Owner and Annuitant who is age 50. It further assumes no subsequent premium payments or withdrawals. 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
Issue	N/A	$100,000	$100,000	$100,000
1	-32.65%	$ 67,050	$ 66,850	$100,000
2	25.66%	$ 84,054	$ 83,669	$100,000
3	23.62%	$103,655	$103,014	$100,000
4	3.53%	$107,003	$106,135	$100,000
5	12.12%	$119,651	$118,468	$100,000
6	17.51%	$140,243	$138,619	$100,000
7	10.27%	$154,225	$152,163	$100,000
8	-0.27%	$153,346	$150,991	$100,000
9	7.39%	$164,218	$161,394	$100,000
10	13.58%	$186,027	$182,505	$100,000

The assumed rate does reflect the deduction of a hypothetical fund fee but does not reflect the deduction of any other fees, charges or taxes. The death benefit values do reflect the deduction of hypothetical base policy fees and hypothetical death benefit fees. For purposes of this example we assumed a Mortality and Expense Risk Fee and Administrative Charge of 0.30% for Policy Value and 0.50% for Return of Premium. Different hypothetical returns and fees would produce different results.

The information in this Statement of Additional Information is not complete and may be changed. This Statement of Additional Information is contained in a registration statement filed with the Securities and Exchange Commission and we may not sell these securities until that registration statement is effective. This Statement of Additional Information is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

STATEMENT OF ADDITIONAL INFORMATION

TRANSAMERICA ADVISORY ANNUITY

Issued through

Transamerica Life Insurance Company
Separate Account VA B (EST. 1/19/1990)
4333 Edgewood Road NE
Cedar Rapids, Iowa 52499-0001
(800)525-6205
www.transamerica.com

Transamerica Financial Life Insurance Company
Separate Account VA BNY (EST. 9/27/1994)
4333 Edgewood Road NE
Cedar Rapids, Iowa 52499-0001
(800)525-6205
www.transamerica.com

This Statement of Additional Information expands upon subjects discussed in the current prospectus for the Transamerica Advisory Annuity offered by Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company (“us,” “we”, “our” or “Company”). You may obtain a copy of the current prospectus, dated December 6, 2019, by calling (800) 525-6205, or write us at the addresses listed above. The prospectus sets forth information that a prospective investor should know before investing in a policy. Terms used in the current prospectus for the policy 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: December 6, 2019

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GLOSSARY OF TERMS	1
THE POLICY—GENERAL PROVISIONS	2
Owner	2
Entire Contract	2
Misstatement of Age or Sex	2
Reallocation of Annuity Units After the Annuity Commencement Date	2
Annuity Payment Options	3
Death Benefit	3
Death of Owner	4
Assignment	4
Evidence of Survival	4
Non-Participating	4
Amendments	4
INVESTMENT EXPERIENCE	4
Accumulation Units	4
Annuity Unit Value and Annuity Payment Rates	6
PERFORMANCE	7
HISTORICAL PERFORMANCE DATA	8
Money Market Yields	8
Total Returns	8
Other Performance Data	9
Adjusted Historical Performance Data	9
PUBLISHED RATINGS	9
STATE REGULATION OF US	9
ADMINISTRATION	10
RECORDS AND REPORTS	10
DISTRIBUTION OF THE POLICIES	10
VOTING RIGHTS	10
OTHER PRODUCTS	10
CUSTODY OF ASSETS	11
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	11
OTHER INFORMATION	11
FINANCIAL STATEMENTS	11
APPENDIX
CONDENSED FINANCIAL INFORMATION	12

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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.

Administrative Office—Transamerica Life Insurance Company and Transamerica Financial 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 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 that is used in the calculation of each variable annuity payment.

Business Day—A day when the New York Stock Exchange is open for regular trading.

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.

Nonqualified Policy—A policy other than a Qualified Policy.

Owner (You, Your) - The person who may exercise all rights and privileges under the 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
•	withdrawals; plus

•	accumulated gains in the Separate Account; minus
•	accumulated losses in the Separate Account; minus

•	service charges, premium taxes, and other charges, if any.

Premium Payment—An amount paid to us 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.

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.

Subaccount - A subdivision within the Separate Account, the assets of which are invested in a specified underlying fund portfolio.

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 us the information we require and is received in good order at the Administrative Office. For some transactions, we may accept an electronic notice or telephone instructions. Such electronic notice must meet the requirements for good order that we establish for such notices.

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

THE POLICY—GENERAL PROVISIONS

Owner

The policy shall belong to the Owner upon issuance of the policy after completion of an Enrollment Form and delivery of the initial Premium Payment. While the Annuitant is living, the Owner may: (1) assign the policy; (2) surrender the policy; (3) amend or modify the policy with our consent; (4) receive annuity payments or name a payee to receive the payments; and (5) exercise, receive and enjoy every other right and benefit contained in the policy. The exercise of these rights may be subject to the consent of any assignee or irrevocable Beneficiary; and of Your spouse in a community or marital property state.

Unless we have been notified of a community or marital property interest in the policy, we will rely on our good faith belief that no such interest exists and will assume no responsibility for inquiry.

Note carefully. If the Owner predeceases the Annuitant and no joint Owner, primary Beneficiary, or contingent Beneficiary is alive or in existence on the date of death, the Owner's estate will become the new Owner. If no probate estate is opened because the Owner has precluded the opening of a probate estate by means of a trust or other instrument, that trust may not exercise ownership rights to the policy. It may be necessary to open a probate estate in order to exercise ownership rights to the policy.

The Owner may change the ownership of the policy in a Written Notice. When this change takes effect, all rights of ownership in the policy will pass to the new Owner. A change of ownership may have tax consequences.

When there is a change of Owner, the change will not be effective until it is recorded in our records. Once recorded, it will take effect as of the date the Owner signs the Written Notice, subject to any payment we have made or action we have taken before recording the change. Changing the Owner does not change the designation of the Beneficiary or the Annuitant.

Entire Contract

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

Misstatement of Age or Sex

During the Accumulation Phase. If the age of any person whose life or age a benefit provided under a guaranteed benefit has been misstated, any such benefit will be that which would have been purchased on the basis of the correct age. If that person would not have been eligible for that guaranteed benefit at the correct age, (i) the benefit will be rescinded; and (ii) any charges that were deducted for the benefit will be refunded and applied to the total account value of the policy.

We reserve the right to terminate the contract at any time if we discover a misstatement or fraudulent representation of any information provided in connection with the issuance or ongoing administration of the policy.

After the Annuity Commencement Date. We may require proof of the Annuitant’s or Owner’s age and/or sex before any payments associated with any benefits are made. If the age or sex of the Annuitant and/or Owner has been misstated, we will change the payment associated with any benefits payable to that which the Premium Payments would have purchased for the correct age or sex. The dollar amount of any underpayment made by us shall be paid in full with the next payment due such person, Beneficiary, or payee. The dollar amount of any overpayment made by us due to any misstatement shall be deducted from payments subsequently accruing to such person or Beneficiary. Any underpayment or overpayment will include interest specified in Your policy, from the date of the wrong payment to the date of the adjustment. The age of the Annuitant or Owner may be established at any time by the submission of proof satisfactory to us.

Reallocation of Annuity Units After the Annuity Commencement Date

After the Annuity Commencement Date, You may reallocate the value of a designated number of Annuity Units of a Subaccount then credited to a policy into an equal value of Annuity Units of one or more other Subaccounts or the Fixed Account. The reallocation shall be based on the relative value of the Annuity Units of the account(s) or Subaccount(s) at the end of the 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

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Annuity Units remaining in an account or Subaccount after a reallocation is less than $10, we reserve the right to include the value of those Annuity Units as part of the transfer. The request must be in writing to our Administrative Office. There is no charge assessed in connection with such reallocation. A reallocation of Annuity Units may be made up to four times in any given Policy Year.

After the Annuity Commencement Date, no transfers may be made from the Fixed Account to the Separate Account.

Annuity Payment Options

During the lifetime of the Annuitant and before the Annuity Commencement Date, the Owner may choose an Annuity Payment Option or change the election, but notice of any election or change of election must be received by us in good order at least thirty (30) days before the Annuity Commencement Date (elections less than 30 days require prior approval). If no election is made before the Annuity Commencement Date, annuity payments will be made under life income with variable payments for 10 years certain using the existing policy value of the Separate Account. The default options may be restricted with respect to Qualified Policies.

The person who elects an Annuity Payment Option can also name one or more Beneficiaries to receive any unpaid, guaranteed amount at the death of the Annuitant. Naming these Beneficiaries cancels any prior choice of a Beneficiary.

A payee who did not elect the Annuity Payment Option does not have the right to advance or assign payments, take the payments in one sum, or make any other change. However, the payee may be given the right to do one or more of these things if the person who elects the option tells us in writing and we agree.

Adjusted Age. For the Life Income and Joint and Survivor Annuity Payment Options, the adjusted age is the Annuitant's actual age nearest birthday, on the Annuity Commencement Date, adjusted as described in Your policy. This adjustment assumes an increase in life expectancy, and therefore it results in lower payments than without such an adjustment.

Variable Payment Options. The dollar amount of the first variable annuity payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the policy. For annuity payments the tables are based on a 3% effective annual AIR and the “Annuity 2000” (male, female and unisex if required by law) mortality table projected for improvement using projection scale G. The rates were projected dynamically using an assumed Annuity Commencement Date of 2020. the “Annuity 2000” mortality rates are adjusted based on improvements in mortality to more appropriately reflect increased longevity. The dollar amount of additional Variable Annuity Payments will vary based on the investment performance of the Subaccount(s) of the Separate Account selected by the Annuitant or Beneficiary. For certain Qualified Policies the use of unisex mortality tables may be required.

Determination of the First Variable Payment. The amount of the first variable payment depends upon the sex (if consideration of sex is allowed under state and Federal law) and adjusted age of the Annuitant.

Determination of Additional Variable Payments. All Variable Annuity Payments other than the first are calculated using Annuity Units which are credited to the policy. The number of Annuity Units to be credited in respect of a particular Subaccount is determined by dividing that portion of the first variable annuity payment attributable to that Subaccount by the Annuity Unit value of that Subaccount on the Annuity Commencement Date. The number of Annuity Units of each particular Subaccount credited to the policy then remains fixed, assuming no transfers to or from that Subaccount occur. The dollar value of variable Annuity Units in the chosen Subaccount will increase or decrease reflecting the investment experience of the chosen Subaccount. The dollar amount of each variable annuity payment after the first may increase, decrease or remain constant. This amount is equal to the sum of the amounts determined by multiplying the number of Annuity Units of each particular Subaccount credited to the policy by the Annuity Unit value for the particular Subaccount on the date the payment is made.

Death Benefit

Due proof of death of the Annuitant is proof that the Annuitant died prior to the commencement of annuity payments. A certified copy of a death certificate, a certified copy of a decree of a court of competent jurisdiction as to the finding of death, a written statement by the attending physician, or any other proof satisfactory to us will constitute due proof of death. If the Annuitant dies after the Annuity Commencement Date, no death benefit is payable and the amount payable will depend on the annuity income option.

Upon receipt in good order of this proof and an election of a method of settlement, the death benefit generally will be paid within seven days, or as soon thereafter as we have sufficient information about the Beneficiary(ies) to make the payment. The death benefit may be paid as a lump sum, as annuity payments or as otherwise permitted by the Company in accordance with applicable law, unless a settlement agreement is effective at the death of the Owner preventing such election.

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If an Owner is not an Annuitant, and dies prior to the Annuity Commencement Date, the new Owner may surrender the policy at any time for the amount of the Cash Value. If the new Owner is not the deceased Owner's spouse, the Cash Value must be distributed within five years after the date of the deceased Owner's death, or be used to provide payments to a designated Beneficiary within one year of such Owner’s death that will be made for life of the Beneficiary or for a period not extending beyond the life expectancy of the Beneficiary. If the sole new Owner is the deceased Owner's surviving spouse, such spouse may elect to continue the policy as the new Owner instead of receiving the death benefit.

Beneficiary. The Beneficiary designation in the Enrollment Form will remain in effect until changed. The Owner may change the designated Beneficiary by sending us Written Notice. The Beneficiary's consent to such change is not required unless the Beneficiary was irrevocably designated or law requires consent. If an irrevocable Beneficiary dies, the Owner may then designate a new Beneficiary. The change will take effect as of the date the Owner signs the Written Notice, whether or not the Owner is living when we receive the notice. We will not be liable for any payment made before the Written Notice is received. If more than one Beneficiary is designated, and the Owner fails to specify their interests, they will share equally. If upon the death of the Annuitant there is a surviving Owner(s), the surviving Owner(s) automatically takes the place of any Beneficiary designation.

Death of Owner

Federal tax law requires that if any Owner (including any joint Owner who has become a current Owner) dies before the Annuity Commencement Date, then the entire value of the policy must generally be distributed within five years of the date of death of such Owner. Certain rules apply where (1) the spouse of the deceased Owner is the sole Beneficiary, (2) the Owner is not a natural person and the primary Annuitant dies or is changed, or (3) any Owner dies after the Annuity Commencement Date. See the TAX INFORMATION section in the prospectus for more information about these rules. Other rules may apply to Qualified Policies.

Assignment

During the lifetime of the Annuitant You may assign any rights or benefits provided by the policy if Your policy is a Nonqualified Policy. An assignment will not be binding on us until a copy has been filed at our Administrative Office. Your rights and benefits and those of the Beneficiary are subject to the rights of the assignee. We assume no responsibility for the validity or effect of any assignment. Any claim made under an assignment shall be subject to proof of interest and the extent of the assignment. An assignment may have tax consequences.

Unless You so direct by filing Written Notice with us, no Beneficiary may assign any payments under the policy before they are due. To the extent permitted by law, no payments will be subject to the claims of any Beneficiary's creditors.

Ownership under Qualified Policies is restricted to comply with the Code.

Evidence of Survival

We reserve the right to require satisfactory evidence that a person is alive if a payment is based on that person being alive. No payment will be made until we receive such evidence.

Non-Participating

The policy will not share in our surplus earnings; no dividends will be paid.

Amendments

No change in the policy is valid unless made in writing by us and approved by one of our officers.

We reserve the right to amend the policies to meet the requirements of the Code, regulations or published rulings. You can refuse such a change by giving Written Notice, but a refusal may result in adverse tax consequences.

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

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the allocation is made. For each Subaccount, the Accumulation Unit value for a given Business Day is based on the net asset value of a share of the corresponding portfolio of the underlying fund portfolios less any applicable charges or fees. The investment performance of the portfolio, expenses, and deductions of certain charges affect the value of an Accumulation Unit.

Upon allocation to the selected Subaccount, Premium Payments are converted into Accumulation Units of the Subaccount. The number of Accumulation Units to be credited is determined by dividing the dollar amount allocated to each Subaccount by the value of an Accumulation Unit for that Subaccount as next determined after the Premium Payment is received at the Administrative Office or, in the case of the initial Premium Payment, when the Enrollment Form is completed, whichever is later. The value of an Accumulation Unit for each Subaccount was arbitrarily established at $10 at the inception of each Subaccount. Thereafter, the value of an Accumulation Unit is determined as of the close of trading on each day the New York Stock Exchange is open for business.

An index (the “net investment factor”) which measures the investment performance of a Subaccount during a Valuation Period, is used to determine the value of an Accumulation Unit for the next subsequent Valuation Period. The net investment factor may be greater or less than or equal to one; therefore, the value of an Accumulation Unit may increase, decrease, or remain the same from one Valuation Period to the next. You bear this investment risk. The net investment performance of a Subaccount and deduction of certain charges affect the Accumulation Unit value.

The net investment factor for any Subaccount for any Valuation Period is determined by dividing (A + B - C) by (D) and subtracting (E) from the result, where the net result of:

A	the net asset value per share of the shares held in the Subaccount determined at the end of the current Valuation Period, plus
B	the per share amount of any dividend or capital gain distribution made with respect to the shares held in the Subaccount if the ex-dividend date occurs during the current Valuation Period, plus or minus
C	a per share credit or charge for any taxes determined by us to have resulted during the Valuation Period from the investment operations of the Subaccount;
D	is the net asset value per share of the shares held in the Subaccount determined as of the end of the immediately preceding Valuation Period; and
E	is an amount representing the Separate Account charge and any optional benefit fees, if applicable.

Illustration of Separate Account Accumulation Unit Value Calculations
Formula and Illustration for Determining the Net Investment Factor

Net Investment Factor =	(A + B - C)	- E
	D

Where:
A =	The net asset value of an underlying fund portfolio share at of the end of the current Valuation Period.
	Assume A = $11.57
B =	The per share amount of any dividend or capital gains distribution since the end of the immediately preceding Valuation Period.
	Assume B = 0
C =	The per share charge or credit for any taxes reserved for at the end of the current Valuation Period.
	Assume C = 0
D =	The net asset value of an underlying fund portfolio share at of the end of the immediately preceding Valuation Period.
	Assume D = $11.40
E =	The daily deduction for the mortality and expense risk fee and the administrative charge, and any optional benefit fees, if applicable. Assume E total 1.50% on an annual basis; On a daily basis, this equals 0.000041096.

Then, the net investment factor =	(11.57 + 0 – 0)	- 0.000041096 = Z = 1.014871185
	(11.40)

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Formula for Determining Accumulation Unit Value

Accumulation Unit Value = A * B
Where:
A =	The Accumulation Unit value for the immediately preceding Valuation Period.
	Assume A = $X
B =	The net investment factor for the current Valuation Period.
	Assume B = Y
Then, the Accumulation Unit value = $X * Y = $Z

Annuity Unit Value and Annuity Payment Rates

The amount of Variable Annuity Payments will vary with Annuity Unit values. Annuity unit values rise if the net investment performance of the Subaccount exceeds the Assumed Investment Return of 3% annually. Conversely, Annuity Unit values fall if the net investment performance of the Subaccount is less than the annual Assumed Investment Return. The value of a variable Annuity Unit in each Subaccount was established at $10 on the date operations began for that Subaccount. The value of a variable Annuity Unit on any subsequent Business Day is equal to A multiplied by B multiplied by C, where:

A	is the variable Annuity Unit value for the Subaccount on the immediately preceding 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 3% effective annual AIR. The Valuation Period is the period from the close of the immediately preceding Business Day to the close of the current Business Day.

The net investment factor for the policy used to calculate the value of a variable Annuity Unit in each Subaccount for the Valuation Period is determined by dividing (i) by (ii) and subtracting (iii) from the result, where:

(i)	is the result of:

(1)	the net asset value of a fund share held in that Subaccount determined at the end of the current Valuation Period; plus
(2)	the per share amount of any dividend or capital gain distributions made by the fund for shares held in that Subaccount if the ex-dividend date occurs during the Valuation Period; plus or minus
(3)	a per share charge or credit for any taxes reserved for, which we determine to have resulted from the investment operations of the Subaccount.

(ii)	is the net asset value of a fund share held in that Subaccount determined as of the end of the immediately preceding Valuation Period.
(iii)	is a factor representing the mortality and expense risk fee and administrative charge. This factor is equal, on an annual basis, to 0.60% of the daily net asset value of shares held in that Subaccount.

The dollar amount of subsequent Variable Annuity Payments will depend upon changes in applicable Annuity Unit values.

The annuity payment rates generally vary according to the annuity option elected and the gender and adjusted age of the Annuitant at the Annuity Commencement Date. The policy contains a table for determining the adjusted age of the Annuitant.

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Calculations for Annuity Unit

Value and Variable Annuity Payments

Formula for Determining Annuity Unit Value

Annuity Unit Value = A * B * C
Where:
A =	Annuity Unit value for the immediately preceding Valuation Period.
	Assume A = $X
B =	Net investment factor for the Valuation Period for which the annuity value is being calculated.
	Assume B = Y
C =	A factor to neutralize the annual Assumed Investment Return of 3% built into the Annuity Tables used.
	Assume C = Z
Then, the Annuity Unit value is: $X * Y * Z = $Q

Formula for Determining Amount of

First Monthly Variable Annuity Payment

First monthly variable annuity payment =	A * B
	$1,000

Where:
A =	The Adjusted Policy Value as of the Annuity Commencement Date.
	Assume A = $X
B =	The annuity purchase rate per $1,000 of Adjusted Policy Value based upon the option selected, the sex and adjusted age of the Annuitant according to the tables contained in the policy.
	Assume B = $Y

Then, the first monthly variable annuity payment =	$X * $Y	= $Z
	1,000

Formula for Determining the Number of Annuity Units

Represented by Each Monthly Variable Annuity Payment

Number of Annuity Units =	A
	B

Where:
A =	The dollar amount of the first monthly variable annuity payment.
	Assume A = $X
B =	The Annuity Unit value for the valuation date on which the first monthly payment is due.
	Assume B = $Y

Then, the number of Annuity Units =	$X	= Z
	$Y

PERFORMANCE

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

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

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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

We may from time to time disclose the current annualized yield of the money market Subaccount, which invests in the corresponding money market portfolio, for a 7-day period in a manner which does not take into consideration any realized or unrealized gains or losses on shares of the corresponding money market portfolio or on its portfolio securities. This current annualized yield is computed by determining the net change (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) at the end of the 7-day period in the value of a hypothetical account having a balance of 1 unit of the money market Subaccount at the beginning of the 7-day period, dividing such net change in account value by the value of the account at the beginning of the period to determine the base period return, and annualizing this quotient on a 365-day basis. The net change in account value reflects (i) net income from the portfolio attributable to the hypothetical account; and (ii) charges and deductions imposed under a policy that are attributable to the hypothetical account. The charges and deductions include the per unit charges for the hypothetical account for (i) the administrative charges and (ii) the mortality and expense risk fee. Current yield will be calculated according to the following formula.

Current Yield = ((NCS * ES)/UV) * (365/7)
Where:
NCS	=	The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of 1 Subaccount unit.
ES	=	Per unit expenses of the Subaccount for the 7-day period.
UV	=	The unit value on the first day of the 7-day period.

Because of the charges and deductions imposed under a policy, the yield for the money market Subaccount will be lower than the yield for the corresponding money market portfolio. The yield calculations do not reflect the effect of any premium taxes.

We may also disclose the effective yield of the money market Subaccount for the same 7-day period, determined on a compounded basis. The effective yield is calculated by compounding the base period return according to the following formula.

Effective Yield = (1 + ((NCS - ES)/UV))^365/7 - 1
Where:
NCS	=	The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of one Subaccount unit.
ES	=	Per unit expenses of the Subaccount for the 7-day period.
UV	=	The unit value on the first day of the 7-day period.

The yield on amounts held in the money market Subaccount normally will fluctuate on a daily basis. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. The money market Subaccount's actual yield is affected by changes in interest rates on money market securities, average portfolio maturity of the corresponding money market portfolio, the types and quality of portfolio securities held by the corresponding money market portfolio and its operating expenses.

Total Returns

We may from time to time also advertise or disclose total returns for one or more of the Subaccounts for various periods of time. One of the periods of time will include the period measured from the date the Subaccount commenced operations. When a Subaccount has been in operation for 1, 5 and 10 years, respectively, the total return for these periods will be provided. Total returns for other

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periods of time may from time to time also be disclosed. Total returns represent the average annual compounded rates of return that would equate an initial investment of $1,000 to the redemption value of that investment as of the last day of each of the periods. The ending date for each period for which total return quotations are provided will be for the most recent month end practicable, considering the type and media of the communication and will be stated in the communication.

Total returns will be calculated using Subaccount unit values which we calculate on each Market Day based on the performance of the Separate Account's underlying fund portfolio and the deductions for the mortality and expense risk fee and the administrative charges. The total return will then be calculated according to the following formula.

P (1 + T)^N = ERV
Where:
T	=	The average annual total return net of Subaccount recurring charges.
ERV	=	The ending redeemable value of the hypothetical account at the end of the period.
P	=	A hypothetical initial payment of $1,000.
N	=	The number of years in the period.

Other Performance Data

We may from time to time also disclose average annual total returns in a non-standard format in conjunction with the standard format described above.

We may from time to time also disclose cumulative total returns in conjunction with the standard format described above. The cumulative returns will be calculated using the following formula.

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

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

Adjusted Historical Performance Data

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

PUBLISHED RATINGS

We may from time to time publish in advertisements, sales literature and reports to Wwners, the ratings and other information assigned to us 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 our financial strength. 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.

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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.

ADMINISTRATION

We perform administrative services for the policies. These services include issuance of the policies, maintenance of records concerning the policies, and certain valuation services.

RECORDS AND REPORTS

We will maintain all records and accounts relating to the Separate Account. As presently required by the 1940 Act, as amended, and regulations promulgated thereunder, we will mail to all Owners at their last known address of record, at least annually, reports containing such information as may be required under that Act or by any other applicable law or regulation. Owners will also receive confirmation of each financial transaction and any other reports required by law or regulation. However, for certain routine transactions (for example, regular monthly premiums deducted from Your checking account, or regular annuity payments we send to You) You may only receive quarterly confirmations.

DISTRIBUTION OF THE POLICIES

We have entered into a distribution agreement with our affiliate, Transamerica Capital, Inc. (“TCI”) for the distribution of the policies. We may reimburse TCI for certain expenses it incurs in order to pay for the distribution of the policies.

TCI’s home office is located at 1801 California St. Suite 5200 Denver, Colorado 80202. 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 the Financial Industry Regulatory Authority (“FINRA”). TCI is not a member of the Securities Investor Protection Corporation.

VOTING RIGHTS

To the extent required by law, we will vote the underlying fund portfolios' shares held by the Separate Account at regular and special shareholder meetings of the underlying fund portfolios in accordance with instructions received from persons having voting interests in the portfolios, although none of the underlying fund portfolios hold regular annual shareholder meetings. If, however, the 1940 Act or any regulation thereunder should be amended or if the present interpretation thereof should change, and as a result we will determine that it is permitted to vote the underlying fund portfolios shares in its own right, it may elect to do so.

Before the Annuity Commencement Date, You hold the voting interest in the selected portfolios. The number of votes that You have the right to instruct will be calculated separately for each Subaccount. The number of votes that You have the right to instruct for a particular Subaccount will be determined by dividing Your Policy Value in the Subaccount by the net asset value per share of the corresponding portfolio in which the Subaccount invests. Fractional shares will be counted.

After the Annuity Commencement Date, You have the voting interest, and the number of votes decreases as annuity payments are made and as the reserves for the policy decrease. The person's number of votes will be determined by dividing the reserve for the policy allocated to the applicable Subaccount by the net asset value per share of the corresponding portfolio. Fractional shares will be counted.

The number of votes that You have the right to instruct will be determined as of the date established by the underlying fund portfolio for determining shareholders eligible to vote at the meeting of the underlying fund portfolio. We will solicit voting instructions by sending You, or other persons entitled to vote, requests for instructions prior to that meeting in accordance with procedures established by the underlying fund portfolio. Portfolio shares as to which no timely instructions are received, and shares held by us in which You, or other persons entitled to vote have no beneficial interest, will be voted in proportion to the voting instructions that are received with respect to all policies participating in the same Subaccount.

Each person having a voting interest in a Subaccount will receive proxy material, reports, and other materials relating to the appropriate portfolio.

OTHER PRODUCTS

We make 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.

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CUSTODY OF ASSETS

We hold assets of each of the Subaccounts. The assets of each of the Subaccounts are segregated and held separate and apart from the assets of the other Subaccounts and from our general account assets. We maintain records of all purchases and redemptions of shares of the underlying fund portfolios held by each of the Subaccounts. Additional protection for the assets of the Separate Account is afforded by our fidelity bond, presently in the amount of $5,000,000, covering the acts of our officers and employees.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The financial statements of the Separate Account VA B and Separate Account VA BNY, as of December 31, 2018, and for the years ended December 31, 2018 and 2017, and the statutory-basis financial statements and schedules of Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company as of December 31, 2018 and 2017, and for each of the three years in the period ended December 31, 2018 included in this Statement of Additional Information have been so included in reliance on the reports of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

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

Separate Account

The values of Your interest in the Separate Account will be affected solely by the investment results of the selected Subaccount(s). The statutory-basis financial statements and schedules of Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company, should be considered only as bearing on the ability of us to meet our obligations under the policies. They should not be considered as bearing on the investment performance of the assets held in the Separate Account.

The Company

Transamerica Life Insurance Company (“TLIC”) did not maintain effective internal controls over the processes and procedures related to the appropriate accounting for intercompany/affiliated reinsurance, which limited their ability to detect and correct presentation errors. This aggregated deficiency resulted in a material weakness, and is not expected to have any material impact on our ability to perform our obligations under the terms of Your contract. We are in the process of remediating this material weakness by enhancing the level of the processes and procedures related to intercompany/affiliated reinsurance. We believe that these enhanced processes and procedures will effectively remediate the material weakness, but the material weakness will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

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APPENDIX

CONDENSED FINANCIAL INFORMATION

Because the Subaccounts in the policy offered under this Transamerica Advisory Annuity Prospectus had not yet been sold or commenced operations as of December 31, 2018, no class of Accumulation Units have yet been derived. Accordingly, no condensed financial information is available as of the date of this Transamerica Advisory Annuity Statement of Additional Information.

F I N A N C I A L S T A T E M E N T S – S T A T U T O R Y B A S I S

A N D S U P P L E M E N T A R Y I NF O R M AT I O N

Transamerica Life Insurance Company

Years Ended December 31, 2018, 2017 and 2016

Transamerica Life Insurance Company

Financial Statements – Statutory Basis

and Supplementary Information

Years Ended December 31, 2018, 2017 and 2016

Contents


Report of Independent Auditors		1

Audited Financial Statements

Balance Sheets – Statutory Basis		3
Statements of Operations – Statutory Basis		4
Statements of Changes in Capital and Surplus – Statutory Basis		5
Statements of Cash Flow – Statutory Basis		7

Notes to Financial Statements – Statutory Basis

1.	Organization and Nature of Business	9
2.	Basis of Presentation and Summary of Significant Accounting Policies	11
3.	Accounting Changes and Correction of Errors	26
4.	Fair Values of Financial Instruments	27
5.	Investments	37
6.	Premium and Annuity Considerations Deferred and Uncollected	57
7.	Policy and Contract Attributes	57
8.	Reinsurance	65
9.	Income Taxes	70
10.	Capital and Surplus	78
11.	Securities Lending	80
12.	Retirement and Compensation Plans	81
13.	Related Party Transactions	82
14.	Commitments and Contingencies	88
15.	Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities	94
16.	Subsequent Events	95
17.	Subsequent Events (Unaudited)	96

Appendix A –Listing of Affiliated Companies		97

Statutory-Basis Financial Statement Schedules

Summary of Investments – Other Than Investments in Related Parties		101
Supplementary Insurance Information		102
Reinsurance		103

LOGO

Report of Independent Auditors

To the Board of Directors of

Transamerica Life Insurance Company

We have audited the accompanying statutory balance sheets of Transamerica Life Insurance Company (the “Company”) as of December 31, 2018 and 2017, and the related statutory statements of operations, of changes in capital and surplus, and of cash flow for each of the three years in the period ended December 31, 2018.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the Iowa Insurance Division. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 2 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the Iowa Insurance Division, which is a basis of accounting other than accounting principles generally accepted in the United States of America.

The effects on the financial statements of the variances between the statutory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

LOGO

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2018 and 2017 or the results of its operations or its cash flows for the years ended December 31, 2018, 2017, and 2016.

Opinion on Statutory Basis of Accounting

In our opinion, the financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities and surplus of the Company as of December 31, 2018 and 2017 and the results of its operations and its cash flows for the years ended December 31, 2018, 2017, and 2016, in accordance with the accounting practices prescribed or permitted by the Iowa Insurance Division described in Note 2.

Emphasis of Matter

As discussed in Note 1 to the financial statements, the financial statements give retroactive effect to the merger of Firebird Re Corp (FReC) into the Company on October 1, 2018 in a transaction accounted for as a statutory merger. Our opinion is not modified with respect to this matter.

Other Matter

Our audit was conducted for the purpose of forming an opinion on the statutory-basis financial statements taken as a whole. The supplemental Summary of Investments - Other Than Investments in Related Parties of the Company as of December 31, 2018 and the Supplementary Insurance Information and Reinsurance of the Company as of December 31, 2018, 2017, and 2016 and for the years then ended are presented for purposes of additional analysis and are not a required part of the statutory-basis financial statements. The supplemental schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the statutory-basis financial statements. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the statutory-basis financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the statutory-basis financial statements or to the statutory-basis financial statements themselves and other additional procedures, in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental schedules are fairly stated, in all material respects, in relation to the statutory-basis financial statements taken as a whole.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

April 25, 2019

Transamerica Life Insurance Company

Balance Sheets – Statutory Basis

(Dollars in Thousands)


	December 31
	2018			2017
Admitted assets
Cash, cash equivalents and short-term investments	$	2,216,702		$	1,900,643
Bonds		26,467,809			28,033,583
Preferred stocks		97,382			103,437
Common stocks		2,998,481			2,954,730
Mortgage loans on real estate		4,574,654			4,202,142
Real estate		114,446			189,044
Policy loans		551,658			580,338
Securities lending reinvested collateral assets		1,670,537			2,460,919
Derivatives		1,923,048			801,215
Other invested assets		1,658,658			1,637,441

Total cash and invested assets		42,273,375			42,863,492

Accrued investment income		399,446			389,011
Premiums deferred and uncollected		115,210			108,500
Current federal income tax recoverable		–			822,090
Net deferred income tax asset		616,798			534,723
Variable annuity reserve hedge offset deferral		231,853			86,794
Other assets		1,461,317			1,210,199
Separate account assets		71,917,551			80,820,068

Total admitted assets	$	117,015,550		$	126,834,877


Liabilities and capital and surplus

Aggregate reserves for policies and contracts	$	25,906,526		$	25,749,685
Policy and contract claim reserves		485,636			399,919
Liability for deposit-type contracts		915,773			1,042,297
Other policyholders’ funds		17,582			17,782
Transfers from separate accounts due or accrued		(1,009,941	)		(1,282,980	)
Funds held under reinsurance treaties		3,785,867			3,504,298
Asset valuation reserve		683,668			698,859
Interest maintenance reserve		290,361			479,605
Derivatives		933,049			794,861
Payable for collateral under securities loaned and other transactions		2,849,569			2,866,693
Borrowed money		3,042,853			4,163,554
Other liabilities		1,418,761			959,829
Separate account liabilities		71,917,550			80,820,067

Total liabilities		111,237,254			120,214,469
Total capital and surplus		5,778,296			6,620,408

Total liabilities and capital and surplus	$	117,015,550		$	126,834,877

See accompanying notes.

Transamerica Life Insurance Company

Statements of Operations - Statutory Basis

(Dollars in Thousands)


	Year Ended December 31
	2018			2017			2016
Revenues
Premiums and other considerations	$	11,422,235		$	(3,130,626	)	$	14,078,543
Net investment income		1,610,651			2,433,048			2,444,917
Commissions and expense allowances on reinsurance ceded		835,062			608,958			394,708
Reserve adjustment on reinsurance ceded		(67,838	)		(1,210,892	)		13,653
Consideration received on reinsurance recapture and novations		217,258			462,313			7,326
Separate accounts net gain from operations		-			139,852			-
Fee revenue and other income		1,830,164			1,844,079			1,679,532

Total revenue		15,847,532			1,146,732			18,618,679

Benefits and expenses
Death benefits		1,588,268			1,428,999			1,543,390
Annuity benefits		1,068,107			1,098,585			1,304,475
Accident and health benefits		295,343			141,823			327,969
Surrender benefits		14,680,368			13,050,057			10,418,017
Other benefits		132,097			131,327			155,409
Net increase (decrease) in reserves		156,841			(12,630,602	)		1,526,057
Commissions		886,178			901,852			1,057,363
Net transfers to (from) separate accounts		(3,475,926	)		(2,037,592	)		729,211
IMR adjustment due to reinsurance		(13,229	)		(2,065,984	)		81,293
General insurance expenses and other		1,205,559			1,021,021			1,020,330

Total benefits and expenses		16,523,606			1,039,486			18,163,514

Gain (loss) from operations before dividends and federal income taxes		(676,074	)		107,246			455,165

Dividends to policyholders		5,953			8,057			5,969

Gain (loss) from operations before federal income taxes		(682,027	)		99,189			449,196
Federal income tax (benefit) expense		(29,827	)		(1,047,090	)		(138,751	)

Net gain (loss) from operations		(652,200	)		1,146,279			587,947
Net realized capital gains (losses), after tax and amounts transferred to interest maintenance reserve		(686,354	)		(542,579	)		(307,183	)

Net income (loss)	$	(1,338,554	)	$	603,700		$	280,764

See accompanying notes.

Transamerica Life Insurance Company

Statements of Changes in Capital and Surplus - Statutory Basis

(Dollars in Thousands)


Balance at January 1, 2016	Common Stock		Preferred Stock			Treasury Stock			Surplus Notes		Paid-in Surplus			Special Surplus Funds			Unassigned Surplus			Total Capital and Surplus
As originally presented	$	6,762	$	1,597		$	(58,000	)	$	150,000	$	3,096,538		$	2,292		$	2,255,496			5,454,685
Merger of Firebird Re Corp (FREC)		-		-			-			-		950,000			-			424,816			1,374,816
Balance at January 1, 2016 (FREC Merger)		6,762		1,597			(58,000	)		150,000		4,046,538			2,292			2,680,312			6,829,501
Net income (loss)		-		-			-			-		-			-			280,764			280,764
Change in net unrealized capital gains/losses, net of taxes		-		-			-			-		-			575,869			(536,884	)		38,985
Change in net deferred income tax asset		-		-			-			-		-			-			189,046			189,046
Change in nonadmitted assets		-		-			-			-		-			-			111,753			111,753
Cumulative effect of change in accounting principle		-		-						-		-			-			(276,056	)		(276,056	)
Change in asset valuation reserve		-		-			-			-		-			-			58,227			58,227
Change in surplus in separate accounts		-		-						-		-			-			2,604			2,604
Dividends to stockholders		-		-			-			-		-			-			(385,630	)		(385,630	)
Return of capital		-		-			-			-		(389,056	)		-			-			(389,056	)
Other changes - net		-		(315	)					-		(3,652	)		(225	)		11,455			7,263
Balance at December 31, 2016	$	6,762	$	1,282		$	(58,000	)	$	150,000	$	3,653,830		$	577,936		$	2,135,591		$	6,467,401
Net income (loss)		-		-			-			-		-			-			603,700			603,700
Change in net unrealized capital gains/losses, net of taxes		-		-			-			-		-			(489,076	)		1,162,662			673,586
Change in net deferred income tax asset		-		-			-			-		-			-			(902,675	)		(902,675	)
Change in nonadmitted assets		-		-			-			-		-			-			455,996			455,996
Change in asset valuation reserve		-		-			-			-		-			-			118,144			118,144
Change in surplus in separate accounts		-		-			-			-		-			-			(117,876	)		(117,876	)
Change in surplus as a result of reinsurance		-		-			-			-		-			-			230,908			230,908
Dividends to stockholders		-		-			-			-		-			-			(480,523	)		(480,523	)
Return of capital		-		-			-			-		(422,572	)		-			-			(422,572	)
Other changes - net		-		(298	)		-			-		(626	)		981			(5,738	)		(5,681	)
Balance at December 31, 2017	$	6,762	$	984		$	(58,000	)	$	150,000	$	3,230,632		$	89,841		$	3,200,189		$	6,620,408

Continued on next page.

Transamerica Life Insurance Company

Statements of Changes in Capital and Surplus - Statutory Basis

(Dollars in Thousands)

Common
Stock

Preferred
Stock

Treasury
Stock

Surplus
Notes

Paid-in Surplus

Special
Surplus
Funds

Unassigned
Surplus

Total Capital
and Surplus

Balance at December 31, 2017

6,762

984

$ (58,000

)

150,000

3,230,632

89,841

3,200,189

6,620,408

Net income (loss)

(1,338,554

)

(1,338,554

)

Change in net unrealized capital gains/losses, net of tax

145,059

1,105,421

1,250,480

Change in net deferred income tax asset

167,651

Change in nonadmitted assets

45,136

Change in asset valuation reserve

15,191

Change in surplus as a result of reinsurance

17,616

Return of capital

(558,740

)

(558,740

)

Dividends to stockholders

(424,567

)

(424,567

)

Other changes - net

(559

)

2,576

(3,047

)

(15,295

)

(16,325

)

Balance at December 31, 2018

6,762

425

(58,000

)

150,000

2,674,468

231,853

2,772,788

5,778,296

See accompanying notes.

Transamerica Life Insurance Company

Statements of Cash Flow – Statutory Basis

(Dollars in Thousands)


	Year Ended December 31
	2018			2017			2016
Operating activities
Premiums and annuity considerations	$	11,422,390		$	5,413,864		$	12,213,919
Net investment income		1,728,466			2,416,637			2,274,152
Other income		2,749,714			6,752,780			2,103,378
Benefit and loss related payments		(17,799,778	)		(15,725,651	)		(13,440,153	)
Net transfers from separate accounts		3,746,156			2,315,254			(601,686	)
Commissions and operating expenses		(1,852,164	)		(2,012,766	)		(2,029,374	)
Dividends paid to policyholders		(6,350	)		(7,348	)		(6,935	)
Federal income taxes (paid) received		936,341			486,361			(214,756	)

Net cash provided by (used in) operating activities		924,775			(360,869	)		298,545

Investing activities
Proceeds from investments sold, matured or repaid	$	8,587,250		$	9,911,821		$	13,351,892
Costs of investments acquired		(7,266,323	)		(7,968,737	)		(15,148,007	)
Net change in policy loans		28,681			27,407			41,992
Net cost of investments acquired		(7,237,642	)		(7,941,330	)		(15,106,015	)

Net cash provided by (used in) investing activities	$	1,349,608		$	1,970,491		$	(1,754,123	)

Financing and miscellaneous activities
Capital and paid in surplus received (returned)	$	(556,833	)	$	(434,179	)	$	(408,074	)
Dividends to stockholders		(364,220	)		(480,523	)		(385,630	)
Net deposits (withdrawals) on deposit-type contracts		(140,549	)		(2,121,885	)		(213,365	)
Net change in borrowed money		(1,125,180	)		1,884,482			1,770,364
Net change in funds held under reinsurance treaties		(271,793	)		(75,583	)		(63,372	)
Net change in payable for collateral under securities lending and other transactions		(18,578	)		(151,384	)		(800,797	)
Other cash (applied) provided		518,829			58,364			670,775

Net cash provided by (used in) financing and miscellaneous activities		(1,958,324	)		(1,320,708	)		569,901
Net increase (decrease) in cash, cash equivalents and short-term investments		316,059			288,914			(885,677	)
Cash, cash equivalents and short-term investments:
Beginning of year		1,900,643			1,611,729			2,497,406

End of year	$	2,216,702		$	1,900,643		$	1,611,729

See accompanying notes.

Transamerica Life Insurance Company

Statements of Cash Flow (supplemental) – Statutory Basis

(Dollars in Thousands)


	Year Ended December 31
Supplemental disclosures of cash flow information		2018		2017		2016

Non-cash activities during the year not included in the Statutory Statement of Cash Flows:

Non-cash dividend to parent company	$	60,347	$	-	$	-
Investments received for insured securities losses		16,489		-		-
Write off of prepaid real estate related assets		2,727		-		-
Non-cash capital contribution to investment subsidiary		1,971		-		-
Transfer of bonds and mortgage loans related to reinsurance agreement with third party		-		7,196,754		-
Transfer of bonds, mortgage loans, and derivatives related to affiliated reinsurance amendment		-		5,650,741		2,648,094
Transfer of bonds to settle reinsurance obligations		-		22,479		2,556
Asset transfer of ownership between hedge funds		-		62,567		-

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

December 31, 2018

1. Organization and Nature of Business

Transamerica Life Insurance Company (the Company) is a stock life insurance company owned by Commonwealth General Corporation (CGC). CGC is an indirect, wholly-owned subsidiary of Aegon N.V., a holding company organized under the laws of The Netherlands.

On October 1, 2018, the Company completed a merger with Firebird Re Corp (FReC), an Arizona-domiciled affiliate. On January 1, 2016, the Company completed a merger with Global Preferred Re Limited (GPRe), a Bermuda-domiciled affiliate. The mergers were accounted for in accordance with the Statement of Statutory Accounting Principles (SAP) No. 68, Business Combinations and Goodwill, as a statutory merger. As such, financial statements for periods prior to the mergers were combined and the recorded assets, liabilities and surplus of FReC and GPRe on a US statutory basis were carried forward to the merged company. As a result of the mergers, FReC and GPRe’s common stock was deemed cancelled by operation of law. Each share of the Company’s capital stock issued and outstanding immediately before the merger shall continue to represent one share of the capital stock. As a result of the merger, the business previously ceded from the Company to FReC and GPRe is no longer reflected as ceded risk in the restated merged financials.

Summarized financial information for the company and FReC presented separately for periods prior to the merger is as follows:


		Year Ended December 31 2017		Year Ended December 31 2016
Revenues:
Company	$	907,248	$	18,431,210
FReC		239,484		187,469

	$	1,146,732	$	18,618,679

Net income (loss):
Company	$	520,708	$	332,890
FReC		82,992		(52,126	)

	$	603,700	$	280,764

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)


		December 31 2017
Assets:
Company	$	125,311,106
FReC		1,523,771
Change in deferred tax admissibility due to merger		–

	$	126,834,877

Liabilities:
Company	$	119,892,350
FReC		322,119
Change in deferred tax admissibility due to merger		–

	$	120,214,469

Capital and surplus:
Company	$	5,418,756
FReC		1,201,652
Change in deferred tax admissibility due to merger		–

	$	6,620,408

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.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

2. Basis of Presentation and Summary of Significant Accounting Policies

The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Iowa Insurance Division (IID), which practices differ from accounting principles generally accepted in the United States of America (GAAP).

The IID recognizes only statutory accounting practices prescribed or permitted by the State of Iowa for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under the Iowa Insurance Law. The National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual (NAIC SAP) has been adopted as a component of prescribed practices by the State of Iowa. Prescribed statutory accounting practices include state laws and regulations. Permitted statutory accounting practices encompass accounting practices that are not prescribed.

The following is a summary of the accounting practices permitted and prescribed by the IID and reflected in the Company’s financial statements:

The Company, with the permission of the Iowa Commissioner of Insurance, is allowed special accounting treatment for certain hedges of interest rate exposures on variable annuity products that would not otherwise conform to current accounting guidance under Statement of Statutory Accounting Principle (SSAP) No. 86 – Derivatives of the NAIC SAP. The Company recognizes a reserve hedge offset deferral for the difference between the hedge results associated with a highly effective clearly defined hedge strategy related to variable annuity interest rate risks and the corresponding interest-rate related impact to variable annuity results. During 2018, 2017 and 2016, the deferral was granted and will be amortized through special surplus funds, change in net unrealized capital gains (losses) financial statement line, on a straight line basis over a period of 10 years beginning in the period of deferral. The Company may request permission from the IID for the deferral annually.

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.

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 (loss) and capital and surplus between NAIC SAP and practices prescribed and permitted by the State of Iowa is shown below:


	SSAP#	F/S Page	F/S Line		2018			2017			2016
Net income (loss), State of Iowa basis				$	(1,338,554	)	$	603,700		$	280,764
State prescribed practices that are an increase(decrease) from NAIC SAP: Separate account asset valuation	56	NA	NA		-			-			-

State permitted practices that are an increase(decrease) from NAIC SAP: Hedge reserve offset deferral	86	Balance Sheet; Statement of Changes in Capital and Surplus	Variable annuity reserve hedge offset deferral Special surplus funds - Change in net unrealized capital gains/ losses		-			-			-

Net income (loss), NAIC SAP				$	(1,338,554	)	$	603,700		$	280,764


Statutory surplus, state of Iowa basis	XXX	XXX	XXX	$	5,778,296		$	6,620,408		$	6,467,401
State prescribed practices that are an increase(decrease) from NAIC SAP: Separate account asset valuation	56	NA	NA		-			-			-

State permitted practices that are an increase(decrease) from NAIC SAP: Hedge reserve offset deferral	86	Balance Sheet; Statement of Changes in Capital and Surplus	Variable annuity reserve hedge offset deferral Special surplus funds - Change in net unrealized capital gains/ losses		(231,853	)		(86,794	)		(575,869	)

Statutory surplus, NAIC SAP	XXX	XXX	XXX	$	5,546,443		$	6,533,614		$	5,891,532

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Use of Estimates

The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.

The effects of the following variances from GAAP on the accompanying statutory-basis financial statements have not been determined by the Company, but are presumed to be material. Significant accounting policies and variances from GAAP are as follows:

Investments

Investments in bonds, except those to which the Securities Valuation Office (SVO) of the NAIC has ascribed a NAIC designation of 6, are reported at amortized cost using the interest method. Bonds containing call provisions, except make-whole call provisions, are amortized to the call or maturity value/date which produces the lowest asset value, often referred to as yield-to-worst method. Bonds ascribed a NAIC designation of 6 are reported at the lower of amortized cost or fair value with unrealized gains and losses reported in changes in capital and surplus. Prepayment penalty or acceleration fees received in the event a bond is liquidated prior to its scheduled termination date are reported as investment income.

Hybrid securities, as defined by the NAIC, are securities designed with characteristics of both debt and equity and provide protection to the issuer’s senior note holders. These securities meet the definition of a bond, in accordance with SSAP No. 26, Bonds, excluding Loan-backed and Structured Securities and therefore, are reported at amortized cost or fair value based upon their NAIC rating.

For GAAP, such fixed maturity investments would be designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity fixed investments would be reported at amortized cost, and the remaining fixed maturity investments would be reported at fair value with unrealized holding gains and losses reported in earnings for those designated as trading and as a separate component of other comprehensive income (OCI) for those designated as available-for-sale.

Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method, including anticipated prepayments, except for those with an initial NAIC designation of 6, which are valued at the lower of amortized cost or fair value. These securities are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium using either the retrospective or prospective methods. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. For statutory reporting, the retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities, which are valued using the prospective method.

For GAAP, all securities purchased or retained that represent beneficial interests in securitized assets, other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If high credit quality securities are adjusted, the retrospective method is used.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company closely monitors below investment grade holdings and investment grade issuers where the Company has concerns to determine if an other-than-temporary impairment (OTTI) has occurred. The Company also regularly monitors industry sectors. The Company considers relevant facts and circumstances in evaluating whether the impairment is other-than-temporary including: (1) the probability of the Company collecting all amounts due according to the contractual terms of the security in effect at the date of acquisition; (2) the Company’s decision to sell a security prior to its maturity at an amount below its carrying amount; and (3) the Company’s ability to hold a structured security for a period of time to allow for recovery of the value to its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes are monitored. Non-structured securities in unrealized loss positions that are considered other-than-temporary are written down to fair value. The Company will record a charge to the statement of operations for the amount of the impairment.

For structured securities, cash flow trends and underlying levels of collateral are monitored. An OTTI is considered to have occurred if the fair value of the structured security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis. An OTTI is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security and the security is in an unrealized loss position. Structured securities considered other-than-temporarily impaired are written down to discounted estimated cash flows if the impairment is the result of cash flow analysis. If the Company has an intent to sell or lack of ability to hold a structured security, it is written down to fair value. The Company will record a charge to the statement of operations for the amount of the impairments.

For GAAP, 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 OTTI is 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 OTTI 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.

Investments in both affiliated and unaffiliated preferred stocks in good standing (those with NAIC designations RP1 to RP3 and P1 to P3), are reported at cost or amortized cost, depending on the characteristics of the securities. Investments in both affiliated and unaffiliated preferred stocks not in good standing (those with NAIC designations RP4 to RP6 and P4 to P6), are reported at the lower of cost, amortized cost, or fair value, depending on the characteristics of the securities. The related net unrealized capital gains and losses for all NAIC designations are reported in changes in capital and surplus.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Common stocks of affiliated noninsurance subsidiaries are reported based on underlying audited GAAP equity. The net change in the subsidiaries’ equity is included in net unrealized capital gains or losses reported in changes in capital and surplus.

Common stocks of unaffiliated companies, which include shares of mutual funds, are reported at fair value and the related net unrealized capital gains or losses are reported in changes in capital and surplus.

The Company owns stock issued by the Federal Home Loan Bank (FHLB), which is only redeemable at par, and its fair value is presumed to be par, unless other-than-temporarily impaired.

If the Company determines that a decline in the fair value of a common stock or a preferred stock is other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the 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.

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. Prepayment penalty or acceleration fees received in the event a loan is liquidated prior to its scheduled termination date are reported as investment income.

Valuation allowances are established for mortgage loans, if necessary, based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, 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.

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.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Investments in real estate are reported net of related obligations rather than on a gross basis as for GAAP. Real estate owned and occupied by the Company is included in investments rather than reported as an operating asset as under GAAP, and investment income and operating expenses for statutory reporting include rent for the Company’s occupancy of those properties. Changes between depreciated cost and admitted amounts are credited or charged directly to unassigned surplus rather than to income as would be required under GAAP.

The Company has interests in joint ventures and limited partnerships. The Company carries these investments based on its interest in the underlying audited GAAP equity of the investee.

For a decline in the fair value of an investment in a joint venture or limited partnership which is determined to be other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the 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. The carrying value is amortized over the life of the investment. Amortization is calculated as a ratio of the current year tax credits and tax benefits compared to the total expected tax credits and tax benefits over the life of the investment.

Cash equivalents are short-term highly liquid investments with original maturities of three months or less (principally stated at amortized cost) or money market mutual funds which are primarily reported at fair value.

Short-term investments include investments with remaining maturities of one year or less at the time of acquisition and are principally stated at amortized cost.

Policy loans are reported at unpaid principal balances.

Realized capital gains and losses are determined using the specific identification method and are recorded net of related federal income taxes. Changes in admitted asset carrying amounts of bonds, mortgage loans, common and preferred stocks are credited or charged directly to unassigned surplus.

Interest income is recognized on an accrual basis. The Company does not accrue income on bonds in default, mortgage loans on real estate in default and/or foreclosure or which are delinquent more than twelve months, or real estate where rent is in arrears for more than three months. Income is also not accrued when collection is uncertain.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Valuation Reserves

Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed income investments, primarily bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals into net investment income over the remaining period to maturity of the bond or mortgage loan based on groupings of individual securities sold in five year bands. That net deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the statement of operations on a pre-tax basis in the period that the assets giving rise to the gains or losses are sold.

The AVR provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus; AVR is not recognized for GAAP.

Derivative Instruments

Overview: The Company may use various derivative instruments (options, caps, floors, swaps, 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.

(A)

Derivative instruments used in hedging transactions that meet the criteria of an effective hedge are valued and reported in a manner that is consistent with the hedged asset or liability (amortized cost or fair value). Embedded derivatives are not accounted for separately from the host contract. Derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge are accounted for at fair value, and the changes in the fair value are recorded in unassigned surplus as unrealized gains and losses. Under US GAAP, the effective and ineffective portions of a single hedge are accounted for separately, and the change in fair value for cash flow hedges is credited or charged directly to a separate component of OCI rather than to income as required for fair value hedges, and an embedded derivative within a contract that is not clearly and closely related to the economic characteristics and the risk of the host contract is accounted for separately from the host contract and valued and reported at fair value.

(B)

Derivative instruments are also used in replication (synthetic asset) transactions. In these transactions, the derivative is accounted for in a manner consistent with the cash instrument and replicated asset. For US GAAP, the derivative is reported at fair value, with the changes in fair value reported in income.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

(C)

Derivative instruments used in income generation relationships are accounted for on a basis that is consistent with the associated covered asset or underlying interest to which the derivative relates (amortized cost or fair value).

(D)

Derivative instruments held for other investment/risk management activities are measured at fair value with value adjustments recorded in unassigned surplus.

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

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

Instruments:

Interest rate swaps are the primary derivative financial instruments used in the overall asset/liability management process to modify the interest rate characteristics of the underlying asset or liability. These interest rate swaps generally provide for the exchange of the difference between fixed and floating rate amounts based on an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally 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

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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 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 capital and surplus. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in capital and surplus. If a swap is terminated prior to maturity, proceeds 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 delta risk created when the Company has issued minimum guarantee insurance contracts linked to an index. These total return swaps generally provide for the exchange of the difference between fixed leg (tied to the S&P or other global market financial index) and floating leg (tied to the London Interbank Offered Rate (LIBOR)) amounts based on an underlying notional amount (also tied to the underlying index). Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. 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 capital and 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. 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 capital and surplus.

Bond forwards are used to hedge the interest rate risk that future liability claims increase as rates decrease, leading to higher guarantee values.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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

The Company issues products providing the customer a return based on the various global equity market indices. The Company uses options to hedge the liability option risk associated with these products. Options are marked to fair value in the balance sheet and fair value adjustments are recorded as capital and surplus in the financial statements. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment.

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 uses zero cost collars to hedge the interest rate risk associated with rising short term interest rates, whereby the exposure would otherwise adversely impact the company’s capital generation. The collar position(s) help range bound the floating rate by combining a cap and floor position.

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 swaptions, whereby the swaption is designed to generate cash flows to offset lower yields on assets during a low interest rate environment. The Company pays a single premium at the beginning of the contract and is amortized throughout the life of the swaption. These swaptions are marked to fair value in the balance sheet and the fair value adjustment is recorded in unassigned surplus. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment.

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 written 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.

Securities Lending Assets and Liabilities

The Company loans securities to third parties under agent-managed securities lending programs accounted for as secured borrowings. Cash collateral received which may be sold or repledged by the Company is reflected as a one-line entry on the balance sheet (securities lending reinvested collateral assets) and a corresponding liability is established to record the obligation to return the cash collateral. Non-cash collateral received which may not be sold or repledged is not recorded on the Company’s balance sheet. Under GAAP, the reinvested collateral is included within invested assets (i.e. it is not one-line reported).

Repurchase Agreements

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. The securities transferred are not removed from the balance sheet, and the cash received as collateral is invested as needed or used for general corporate purposes of the Company. A liability is established to record the obligation to return the cash collateral and included in Borrowed Money on the Balance Sheets.

Other Assets and Other Liabilities

Other assets consist primarily of receivables from reinsurance, accounts receivable and company owned life insurance. Company owned life insurance is carried at cash surrender value.

Other liabilities consist primarily of amounts withheld by the Company, accrued expenses and municipal repurchase agreements. Municipal repurchase agreements are investment contracts issued to municipalities that pay either a fixed or floating rate of interest on the guaranteed deposit balance. The floating interest rate is based on a market index. The related liabilities are equal to the policyholder deposit and accumulated interest. These municipal repurchase agreements require a minimum of 95% of the fair value of the securities transferred to be maintained as collateral.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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.

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.

Surplus funds transferred from the general account to the separate accounts, commonly referred to as seed money, and earnings accumulated on seed money are reported as surplus in the separate accounts until transferred or repatriated to the general account. The transfer of such funds between the separate account and the general account is reported as surplus contributed or withdrawn during the year.

Aggregate Reserves for Policies and Contracts

Life, annuity and accident and health benefit reserves are calculated by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed cash value, or the amount required by law.

For GAAP, policy reserves are calculated based on estimated expected experience or actual account balances.

Policy and Contract Claim Reserves

Claim reserves represent the estimated accrued liability for claims reported to the Company and claims incurred but not yet reported through the balance 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.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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. Interest on these policies is reflected in other benefits.

Premiums and Annuity Considerations

Revenues for life and annuity policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received. Benefits incurred represent surrenders and death benefits paid and the change in policy reserves. Under GAAP, for universal life policies, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent interest credited to the account values and the excess of benefits paid over the policy account value. Under GAAP, for all annuity policies without significant mortality risk, premiums received and benefits paid would be recorded directly to the reserve liability using deposit accounting.

Policyholder Dividends

Policyholder dividends are recognized when declared rather than over the term of the related policies as would be required under GAAP.

Reinsurance

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

Any reinsurance amounts deemed to be uncollectible have been written off through a charge to operations. In addition, a liability for reinsurance balances would be established for unsecured policy reserves ceded to reinsurers not authorized to assume such business. Changes to the liability are credited or charged directly to unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings.

Losses associated with an indemnity reinsurance transaction are reported within income when incurred rather than being deferred and amortized over the remaining life of the underlying reinsured contracts as would be required under GAAP.

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.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Commissions allowed by reinsurers on business ceded are reported as income when incurred rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP.

Under GAAP, for certain reinsurance agreements whereby assets are retained by the ceding insurer (such as funds withheld or modified coinsurance) and a return is paid based on the performance of underlying investments, the assets and liabilities for these reinsurance arrangements must be adjusted to reflect the fair value of the invested assets. The NAIC SAP does not contain a similar requirement.

Deferred Income Taxes

The Company computes deferred income taxes in accordance with SSAP No. 101, Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10. Under SSAP 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 state income taxes are not recorded under SSAP No. 101, whereas under GAAP state income taxes are included in the computation of deferred income taxes.

Policy Acquisition Costs

The costs of acquiring and renewing business are expensed when incurred. Under GAAP, incremental costs directly related to the successful acquisition of insurance and investment contracts are deferred. For traditional life insurance and certain long-duration accident and health insurance, to the extent recoverable from future policy revenues, acquisition costs 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.

Value of Business Acquired

Under GAAP, value of business acquired (VOBA) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future contracts and contract changes, premiums, mortality and morbidity, separate account performance, surrenders, operation expenses, investment returns, nonperformance risk adjustment and other factors. VOBA is not recognized under NAIC SAP.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Subsidiaries and affiliated companies

Investments in subsidiaries, controlled and affiliated companies (SCA) are stated in accordance with the Purposes and Procedures Manual of the NAIC SVO, as well as SSAP No. 97 – Investments in Subsidiary, Controlled and Affiliated Entities.

The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company as would be required under GAAP. Dividends or distributions received from an investee are recognized in investment income when declared to the extent that they are not in excess of the undistributed accumulated earnings attributable to an investee. Changes in investments in SCA’s are recorded as a change to the carrying value of the investment with a corresponding amount recorded directly to unrealized gain/loss (capital and surplus).

Surplus Notes

Surplus notes are reported as surplus rather than as liabilities as would be required under GAAP.

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 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.

Statements of Cash Flow

Cash, cash equivalents and short-term investments in the statements of cash flow represent cash balances and investments with initial maturities of one year or less and money market mutual funds. Under GAAP, the corresponding caption of cash and cash equivalents includes cash balances and investments with initial maturities of three months or less.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

3. Accounting Changes and Corrections of Errors

The Company’s policy is to disclose as recent accounting pronouncements the adopted accounting guidance with a current year effective date that has been classified by the NAIC as a substantive change, as well as items classified as nonsubstantive changes that have had a material impact on the financial position or results of operations of the Company.

Recent Accounting Pronouncements

Effective December 31, 2018, the NAIC adopted revisions to SSAP No. 21, Other Admitted Assets. Revisions incorporated accounting guidance for structured settlement income streams acquired by insurers as investments. Periodic-certain structured settlements acquired in accordance with all state and federal laws are to be reported as admitted assets. The adoption of this guidance did not impact the financial position or results of operations of the Company.

Effective January 1, 2018, the NAIC adopted revisions to SSAP No. 100, Fair Value, which allow net asset value (NAV) per share as a practical expedient to fair value, either when specifically named in a SSAP or when specific conditions exist. The revisions adopt ASU 2009-12: Investments in Certain Entities that Calculate Net Asset Value Per Share (or Its Equivalent) and ASU 2015-07: Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share (or Its Equivalent). The adoption of this guidance did not impact the financial position or results of operations of the Company as the Company does not use NAV as a practical expedient.

Prior Period Correction

During 2018, management identified and corrected errors in the calculation of Related Party balances received and paid. Amounts received from related parties for 2017 and 2016 were understated by $207,569 and $202,159, respectively. Amounts paid to related parties for 2017 and 2016 were understated by $167,018 and $193,093, respectively. This is reflected in the Related Party disclosure in Note 13. The error did not affect any other footnotes or the financial statements.

Change in Accounting Principles

The Company has certain liabilities associated with financial instruments activity including securities lending collateral payable, derivative cash collateral payable, and dollar repurchase agreements. During 2018, Management determined that including these liabilities as part of Note 4 provides the user improved clarity, information, and usefulness. This change is noted as a change in accounting principle and was implemented on a prospective basis beginning in 2018.

Reclassifications

The Company reclassified certain balances within the statutory basis financial statement presentation on the Balance Sheets, Statements of Operations and Statements of Cash Flows to better align with industry practice. All prior period amounts were reclassified to conform with the current period presentation. The Company did not change any financial statement totals reported in the prior periods as a result of reclassifications.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

4. Fair Values of Financial Instruments

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

Determination of fair value

The fair values of financial instruments are determined by management after taking into consideration several sources of data. When available, the Company uses quoted market prices in active markets to determine the fair value of its investments. The Company’s valuation policy utilizes a pricing hierarchy which dictates that publicly available prices are initially sought from indices and third-party pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes. Lastly, securities are priced using internal cash flow modeling techniques. These valuation methodologies commonly use reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, and/or estimated cash flows.

To understand the valuation methodologies used by third-party pricing services, the Company reviews and monitors their applicable methodology documents. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, the Company performs in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate 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.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Fair value hierarchy

The Company’s financial assets and liabilities carried at fair value are classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100R, Fair Value. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:


Level 1 -		Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.

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

		a) Quoted prices for similar assets or liabilities in active markets
		b) Quoted prices for identical or similar assets or liabilities in non-active markets
		c) Inputs other than quoted market prices that are observable
		d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means

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

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

Cash Equivalents and Short-Term Investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments is either reported at fair value or amortized cost (which approximates fair value). Cash is not included in the below tables.

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

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

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from third-party pricing services, or are based on non-binding broker quotes or internal models. In the case of private placements, fair values are estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments.

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

Real Estate: Real estate held for sale is typically valued utilizing independent external appraisers in conjunction with reviews by qualified internal appraisers. Valuations are primarily based on active market prices, adjusted for any difference in the nature, location or condition of the specific property. If such information is not available, other valuation methods are applied, considering the value that the property’s net earning power will support, the value indicated by recent sales of comparable properties and the current cost of reproducing or replacing the property.

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

Derivative Financial Instruments: The fair value of futures and forwards are based upon the latest quoted market price & spot rates at the balance sheet date. The estimated fair values of equity and interest rate options (calls, puts, caps) are based upon the latest quoted market price at the balance sheet date. The estimated fair values of swaps, including equity, interest rate and currency swaps, are based on pricing models or formulas using current assumptions. The estimated fair values of credit default swaps are based upon active market data, including interest rate quotes, credit spreads, and recovery rates, which are then used to calculate probabilities of default for the fair value calculation. The Company accounts for derivatives that receive and pass hedge accounting in the same manner as the underlying hedged instrument. If that instrument is held at amortized cost, then the derivative is also held at amortized cost.

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

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

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

internal modeling which utilizes input that are not market observable. The fair value of separate account annuity liabilities is based on the account value for separate accounts business without guarantees. For separate accounts with guarantees, fair value is based on discounted cash flows.

Investment Contract Liabilities: Fair value for the Company’s liabilities under investment contracts, which include deferred annuities and GICs, are estimated using discounted cash flow calculations. For those liabilities that are short in duration, carrying amount approximates fair value. For investment contracts with no defined maturity, fair value is estimated to be the present surrender value.

Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying balance sheets approximate their fair values. These are included in the Investment Contract Liabilities.

The Company accounts for its investments in affiliated common stock in accordance with SSAP No. 97, as such, they are not included in the following disclosures.

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.

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, 2018 and 2017, respectively:

December 31, 2018

Aggregate
Fair Value

Admitted
Value

(Level 1)

(Level 2)

(Level 3)

Net Asset

Value (NAV)

Admitted assets

Cash equivalents and short-term investments, other than affiliates

1,857,985

1,333,140

524,845

–

Short-term notes receivable from affiliates

261,000

–

261,000

–

Bonds

27,150,574

26,467,809

6,777,150

19,937,391

436,033

–

Preferred stocks, other than affiliates

91,213

97,382

–

88,216

2,997

–

Common stocks, other than affiliates

171,979

15,401

156,572

–

Mortgage loans on real estate

4,621,578

4,574,654

–

4,621,578

–

Other invested assets

240,960

214,317

–

229,234

11,726

–

Derivative assets:

Options

835,056

–

835,056

–

Interest rate swaps

708,359

708,707

–

708,359

–

Currency swaps

15,288

15,495

–

15,288

–

Credit default swaps

48,036

49,219

–

48,036

–

Equity swaps

278,712

–

278,712

–

Interest rate futures

20,473

–

Equity futures

15,386

–

Derivative assets total

1,921,310

1,923,048

35,859

1,885,451

–

Policy loans

551,658

–

551,658

–

Securities lending reinvested collateral

1,507,848

71,045

1,436,803

–

Separate account assets

71,293,672

71,273,648

67,626,229

3,663,620

3,823

–

Liabilities

Investment contract liabilities

12,930,349

12,022,177

–

243,143

12,687,205

–

Derivative liabilities:

Options

314,840

–

314,840

–

Interest rate swaps

366,016

580,625

–

366,016

–

Currency swaps

1,706

645

–

1,706

–

Credit default swaps

(1,311

)

12,827

–

(1,311

)

–

Equity swaps

16,512

–

16,512

–

Interest rate futures

6,730

–

Equity futures

870

–

Derivative liabilities total

705,363

933,049

7,600

697,763

–

Dollar repurchase agreements

204,253

–

204,253

–

Payable for securities lending

1,670,537

–

1,670,537

–

Payable for derivative cash collateral

1,179,032

–

1,179,032

–

Separate account annuity liabilities

66,262,464

66,264,300

3,069

66,222,440

36,955

–

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)


	December 31, 2017
	Aggregate Fair Value			Admitted Value		(Level 1)		(Level 2)			(Level 3)		Net Asset Value (NAV)
Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	1,654,664		$	1,654,682	$	1,077,469	$	577,195		$	–	$	–
Short-term notes receivable from affiliates		168,300			168,300		–		168,300			–		–
Bonds		30,396,348			28,033,583		8,822,765		20,934,757			638,826		–
Preferred stocks, other than affiliates		94,950			96,276		–		91,770			3,180		–
Common stocks, other than affiliates		203,091			203,091		5,320		20			197,751		–
Mortgage loans on real estate		4,330,683			4,202,142		–		–			4,330,683		–
Other invested assets		250,440			212,466		–		244,488			5,952		–
Derivative assets:
Options		170,119			170,119		–		170,119			–		–
Interest rate swaps		574,599			574,448		–		541,454			33,145		–
Currency swaps		8,349			10,269		–		8,349			–		–
Credit default swaps		55,537			36,620		–		55,537			–		–
Equity swaps		9,760			9,760		–		9,760			–		–
Policy loans		580,338			580,338		–		580,338			–		–
Securities lending reinvested collateral		2,460,919			2,460,919		–		2,460,919			–		–
Separate account assets		80,149,650			80,096,666		76,888,437		3,253,417			7,796		–

Liabilities
Investment contract liabilities		12,427,585			11,460,334		–		251,404			12,176,181		–
Derivative liabilities:
Options		45,443			45,443		–		45,443			–		–
Interest rate swaps		305,657			438,194		–		303,184			2,473		–
Currency swaps		5,041			2,776		–		5,041			–		–
Credit default swaps		(12,107	)		23,526		–		(12,107	)		–		–
Equity swaps		284,921			284,921		–		284,921			–		–
Separate account annuity liabilities		74,664,347			74,665,853		1,550		74,619,387			43,410		–

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, 2018 and 2017:

2018

Level 1

Level 2

Level 3

Total

Assets:

Bonds

Industrial and miscellaneous

–

26,472

8,205

34,677

Hybrid securities

–

2,282

–

2,282

Total bonds

–

28,754

8,205

36,959

Preferred stock

Industrial and miscellaneous

–

1,601

2,997

4,598

Total preferred stock

–

1,601

2,997

4,598

Common stock

Mutual funds

12,648

–

12,648

Industrial and miscellaneous

2,753

156,572

159,331

Total common stock

15,401

156,572

171,979

Cash equivalents and short-term

Mutual funds

1,333,140

–

1,333,140

Total cash equivalents and short-term

1,333,140

–

1,333,140

Securities lending reinvested collateral

71,045

–

71,045

Derivative assets

35,859

1,828,844

–

1,864,703

Separate account assets

67,486,247

3,103,229

3,823

70,593,299

Total assets

68,941,692

4,962,434

171,597

74,075,723

Liabilities:

Derivative liabilities

7,600

772,387

–

779,987

Separate account liabilities

3,069

–

3,069

Total liabilities

10,669

772,387

–

783,056

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)


	2017
	Level 1		Level 2		Level 3		Total
Assets:
Bonds
Industrial and miscellaneous	$	–	$	21,438	$	14,618	$	36,056

Total bonds		–		21,438		14,618		36,056

Preferred stock
Industrial and miscellaneous		–		1,964		3,180		5,144

Total preferred stock		–		1,964		3,180		5,144

Common stock
Mutual funds		–		5		–		5
Industrial and miscellaneous		5,320		15		197,751		203,086

Total common stock		5,320		20		197,751		203,091

Cash equivalents and short-term
Government		–		69,167		–		69,167
Money market mutual funds		1,077,470		–		–		1,077,470

Total cash equivalents and short-term		1,077,470		69,167		–		1,146,637

Securities lending reinvested collateral		–		2,460,919		–		2,460,919
Derivative assets		–		721,333		31,703		753,036
Separate account assets		76,780,559		2,607,246		51,040		79,438,845

Total assets	$	77,863,349	$	5,882,087	$	298,292	$	84,043,728

Liabilities:
Derivative liabilities	$	–	$	679,730	$	2,473	$	682,203
Separate account liabilities		1,550		–		–		1,550

Total liabilities	$	1,550	$	679,730	$	2,473	$	683,753

The Company reviews the fair value hierarchy classifications at each reporting period. Overall, reclassifications between levels occur when there are changes in the observability of inputs and market activity used in the valuation of a financial asset or liability. Given the types of assets classified as Level 1 (primarily equity securities including mutual fund investments), transfers between Level 1 and Level 2 measurement categories are expected to be infrequent. Transfers into and out of level 3 are summarized in the schedule of changes in level 3 asset and liabilities. There were no material asset transfers between level 1 and level 2 or between level 2 and level 3 during the years ended December 31, 2018 and 2017.

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

Preferred stock classified as Level 2 are valued using inputs from third party pricing services or broker quotes. Preferred stock classified as Level 3 are internally valued using significant unobservable inputs.

Common stock classified as Level 2 are valued using inputs from third party pricing services or broker quotes. Common stock classified as Level 3 are comprised primarily of shares in the 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.

Cash equivalents and short-term investments classified as level 1 are primarily money market mutual funds and are measured at fair value. For those securities with a pricing source of ‘amortized cost’; amortized cost is a proxy for fair value.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Securities lending reinvested in collateral is valued and classified in the same way as the underlying collateral, which is primarily composed of short-term investments.

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. Derivatives classified as Level 3 represent interest rate swaps 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 and liabilities are valued and classified in the same way as general account assets and liabilities (described above).

The following tables summarize the changes in assets classified as Level 3 for 2018 and 2017:

Beginning
Balance at
January 1, 2018

Transfers in
(Level 3)

Transfers out
(Level 3)

Total Gains

(Losses) Included

in Net income (a)

Total Gains (Losses)

Included in Surplus
(b)

Bonds

Government

–

)

RMBS

–

(26

)

Other

14,619

–

5,465

108

423

Preferred stock

3,180

–

(754

)

Common stock

197,751

–

270

(2,000

)

3,398

Other long term

–

920

1,040

–

(310

)

Derivatives

29,230

–

(84,445

)

(29,230

)

Separate account assets

51,040

1,394

249

(43,234

)

(77

)

Total

295,820

2,314

7,024

(129,600

)

(26,521

)

Purchases

Issuances

Sales

Settlements

Ending Balance at
December 31, 2018

Bonds

Government

–

RMBS

–

Other

–

1,479

8,206

Preferred stock

828

–

259

–

2,997

Common stock

–

216

42,400

123

156,572

Other long term

430

–

Derivatives

–

(3,869

)

(80,576

)

–

Separate account assets

100

–

3,490

1,660

3,824

Total

1,358

216

42,280

(77,314

)

171,598

(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

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)


	Beginning Balance at January 1, 2017			Transfers in (Level 3)		Transfers out (Level 3)			Total Gains (Losses) Included in Net income (a)			Total Gains (Losses) Included in Surplus (b)
Bonds
Government	$	–		$	–	$	–		$	(8	)	$	8
RMBS		–			–		–			(30	)		30
Other		18,746			2,571		2,555			2			1,306
Preferred stock		3,153			–		–			–			(518	)
Common stock		192,928			7		6			(2,246	)		1,896
Derivatives		(358,974	)		457		–			(174,683	)		387,747
Separate account assets		45,420			3,249		2,719			16			4,887

Total	$	(98,727	)	$	6,284	$	5,280		$	(176,949	)	$	395,356


	Purchases			Issuances		Sales			Settlements			Ending Balance at December 31, 2017
Bonds
Government	$	–		$	–	$	–		$	–		$	–
RMBS		–			–		–			–			–
Other	$	–		$	6,082	$	–		$	11,533		$	14,619
Preferred stock		546			–		–			–			3,180
Common stock		155			12,164		1,000			6,148			197,750
Derivatives		–			–		(8,536	)		(166,147	)		29,230
Separate account assets		5,393			–		755			4,452			51,040

Total	$	6,094		$	18,246	$	(6,781	)	$	(144,014	)	$	295,819

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

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

Transfers between fair value hierarchy levels are recognized at the beginning of the reporting period.

Nonrecurring fair value measurements

As indicated in Note 2, real estate held for sale is measured at the lower of carrying amount or fair value less cost to sell. As of December 31, 2018, the Company held no properties as held-for-sale, where fair value was less than its carrying value. As of December 31, 2018, the Company held two properties as held-for sale, where carrying amount of $15,168 was equal to fair value.

Fair value was determined by utilizing an external appraisal following the sales comparison approach. The fair value measurements are classified as Level 3 as the comparable sales and adjustments for the specific attributes of these properties are not market observable inputs.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

5. Investments

Bonds and Stocks

The carrying amounts and estimated fair value of investments in bonds and stocks are as follows:


	Book Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2018
Bonds:
United States Government and agencies	$	6,387,028	$	246,948	$	121,683	$	6,512,293
State, municipal and other government		732,171		34,020		18,984		747,207
Hybrid securities		249,112		13,176		7,196		255,092
Industrial and miscellaneous		15,065,090		711,594		368,812		15,407,872
Mortgage and other asset-backed securities		4,034,408		257,889		64,185		4,228,112
Total bonds		26,467,809		1,263,627		580,860		27,150,576
Unaffiliated preferred stocks		97,382		3,022		9,191		91,213
Total	$	26,565,191	$	1,266,649	$	590,051	$	27,241,789

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Unaffiliated common stocks	$	154,552	$	18,557	$	1,130	$	171,979

	Book Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2017
Bonds:
United States Government and agencies	$	7,991,164	$	647,439	$	91,438	$	8,547,165
State, municipal and other government		649,273		64,326		4,664		708,935
Hybrid securities		315,345		44,852		11,156		349,041
Industrial and miscellaneous		14,674,617		1,528,517		66,209		16,136,925
Mortgage and other asset-backed securities		4,403,184		298,152		47,054		4,654,282
Total bonds		28,033,583		2,583,286		220,521		30,396,348
Unaffiliated preferred stocks		96,276		5,552		6,878		94,950
	$	28,129,859	$	2,588,838	$	227,399	$	30,491,298

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Unaffiliated common stocks	$	187,538	$	15,572	$	19	$	203,091

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The carrying amount and estimated fair value of bonds at December 31, 2018, 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.


	2018
December 31:	Carrying Value		Fair Value
Due in one year or less	$	694,758	$	701,949
Due after one year through five years		4,349,981		4,351,741
Due after five years through ten years		5,340,061		5,500,383
Due after ten years		12,048,601		12,368,391

		22,433,401		22,922,464
Mortgage and other asset-backed securities		4,034,408		4,228,112

	$	26,467,809	$	27,150,576

The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2018 and 2017 is as follows:

2018

Equal to or Greater than 12
Months

Less than 12 Months

Estimated
Fair Value

Gross

Unrealized
Losses

Estimated
Fair Value

Gross
Unrealized
Losses

United States Government and agencies

408,244

25,720

3,771,156

95,963

State, municipal and other government

81,284

6,595

179,206

12,389

Hybrid securities

13,815

2,063

104,398

5,133

Industrial and miscellaneous

1,490,093

135,948

4,732,483

232,864

Mortgage and other asset-backed securities

762,982

37,966

793,414

26,219

Total bonds

2,756,418

208,292

9,580,657

372,568

Preferred stocks-unaffiliated

22,257

6,098

33,300

3,093

Common stocks-unaffiliated

–

11,083

1,130

Total

2,778,675

214,390

9,625,040

376,791

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)


	2017

	Equal to or Greater than 12 Months				Less than 12 Months

	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses

United States Government and agencies	$	1,367,915	$	89,250	$	190,002	$	2,188
State, municipal and other government		87,540		4,243		48,382		421
Hybrid securities		74,461		11,156		–		–
Industrial and miscellaneous		1,197,291		49,558		1,038,803		16,651
Mortgage and other asset-backed securities		615,787		31,026		746,813		16,028

Total bonds		3,342,994		185,233		2,024,000		35,288

Preferred stocks-unaffiliated		18,880		6,817		3,846		61
Common stocks-unaffiliated		–		–		549		19

	$	3,361,874	$	192,050	$	2,028,395	$	35,368

During 2018 and 2017, respectively, there were no loan-backed or structured securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold for a period of time to recover the amortized cost basis. During 2016 there was $27,182 of loan-backed structured securities with a recognized OTTI due to the inability or lack of intent and ability to hold for a period of time to recover the amortized cost basis.

For loan-backed and structured securities with a recognized OTTI due to the Company’s cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield, in 2018, 2017 and 2016 the Company recognized OTTI of $4,339, $7,960 and $17,321, respectively.

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, 2018, for which an OTTI was recognized during the current reporting period:

CUSIP

Amortized
Cost Before
Current

Period OTTI

Present
Value of
Projected

Cash Flows

Recognized
OTTI

Amortized

Cost After
OTTI

Fair Value
at Time of
OTTI

Date of
Financial

Statement
Where
Reported

059515AC0

2,646

2,494

152

2,494

2,214

3/31/2018

14984WAA8

1,740

1,678

1,530

3/31/2018

3622EEAA0

6,023

5,988

6,022

3/31/2018

52522QAM4

41,713

41,166

547

41,166

40,475

3/31/2018

65536PAA8

648

636

491

3/31/2018

48123HAA1

259

248

3/31/2018

126380AA2

5,069

)

5,069

5,287

3/31/2018

05950WAM0

1,425

1,172

253

1,172

1,189

06/30/2018

059515AC0

2,368

2,335

2,072

06/30/2018

65536PAA8

622

440

182

440

476

06/30/2018

48123HAA1

239

–

239

–

09/30/2018

225470FJ7

1,142

1,106

1,084

12/31/2018

22944BCX4

54,890

54,108

782

54,108

49,073

12/31/2018

36828QQK5

4,500

2,505

1,995

2,505

4,326

12/31/2018

4,339

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, 2018 and 2017 is as follows:

2018

2017

Losses 12
Months or

More

Losses Less
Than 12
Months

Losses 12
Months
or More

Losses Less
Than 12
Months

Year ended December 31:

The aggregate amount of unrealized losses

37,966

39,883

31,010

29,380

The aggregate related fair value of securities with unrealized losses

762,982

815,146

614,741

770,935

At December 31, 2018 and 2017, 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 610 and 468 securities with a carrying amount of $2,993,065 and $3,553,923, and an unrealized loss of $214,390 and $192,050 with an average price of 92.8 and 93.9 (fair value/amortized cost). Of this portfolio, 90.7% and 89.7% were investment grade with associated unrealized losses of $161,075 and $141,101, respectively.

At December 31, 2018 and 2017, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 1,323 and 504 securities with a carrying amount of $9,989,618 and $2,063,194 and an unrealized loss of $375,662 and

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

$35,349 with an average price of 96.2 and 97.3 (fair value/amortized cost). Of this portfolio, 89.6% and 87.4% were investment grade with associated unrealized losses of $291,872 and $27,177, respectively.

At December 31, 2018 and 2017, respectively, there were no common stocks that have been in a continuous loss position for greater than or equal to twelve months.

At December 31, 2018 and 2017, respectively, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 13 and 5 securities with a cost of $12,212 and $592 and an unrealized loss of $1,130 and $43 with an average price of 90.8 and 92.8 (fair value/cost).

The following structured notes were held at December 31, 2018 and 2017:

December 31, 2018

CUSIP Identification

Actual Cost

Fair Value

Book /Adjusted
Carrying Value

Mortgage-
Referenced
Security
(YES/NO)

912810QV3

14,974

14,436

16,404

912810RA8

772,522

875,159

856,899

912810RL4

1,145,407

1,169,921

1,230,189

44965TAA5

5,822

5,137

5,829

44965UAA2

3,605

3,047

3,606

Total

1,942,330

2,067,700

2,112,927

December 31, 2017

CUSIP Identification

Actual Cost

Fair Value

Book /Adjusted
Carrying Value

Mortgage-
Referenced
Security
(YES/NO)

44965TAA5

4,296

4,802

4,301

44965UAA2

205

241

205

912810QV3

14,974

15,644

16,022

912810RA8

772,522

951,760

831,117

912810RL4

1,195,281

1,333,989

1,249,924

Total

1,987,278

2,306,436

2,101,569

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The following table provides the number of 5GI securities, aggregate book adjusted carrying value and aggregate fair value by investment type:


	Number of 5GI Securities	Book /Adjusted Carrying Value		Fair Value
December 31, 2018
Bond, amortized cost	3	$	29,647	$	29,725
Loan-backed and structured securities, amortized cost	1		8		8
Preferred stock, amortized cost	1		2,996		2,996

Total	5	$	32,651	$	32,729

December 31, 2017
Bond, amortized cost	4	$	33,531	$	35,359
Loan-backed and structured securities, amortized cost	1		9		9

Total	5	$	33,540	$	35,368

During 2018 and 2017, the Company sold, redeemed or otherwise disposed of 152 and 112 securities as a result of a callable feature which generated investment income of $17,409 and $44,912 as a result of a prepayment penalty and/or acceleration fee.

Proceeds from sales and other disposals of bonds and preferred stock and related gross realized capital gains and losses are reflected in the following table. The amounts exclude maturities and include transfers associated with reinsurance agreements.


	Year Ended December 31
	2018			2017			2016
Proceeds	$	5,597,099		$	17,928,678		$	11,073,491

Gross realized gains	$	73,153		$	2,373,050		$	167,936
Gross realized losses		(207,526	)		(151,088	)		(120,206	)

Net realized capital gains (losses)	$	(134,373	)	$	2,221,962		$	47,730

The Company had gross realized losses, which relate to losses recognized on other-than-temporary declines in the fair value of bonds and preferred stocks, for the years ended December 31, 2018, 2017 and 2016 of $10,795, 19,101 and $40,319 respectively.

At December 31, 2018 and 2017, the Company had no investments in restructured securities.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Mortgage Loans

The credit quality of mortgage loans by type of property for the years ended December 31, 2018 and 2017 were as follows:


December 31, 2018
	Farm		Commercial		Total
AAA - AA	$	219	$	2,619,855	$	2,620,074
A		42,814		1,734,474		1,777,288
BBB		6,690		157,753		164,443
BB		8,730		4,119		12,849
B		–		–		–

	$	58,453	$	4,516,201	$	4,574,654


December 31, 2017
	Farm		Commercial		Total
AAA - AA	$	16,247	$	2,421,619	$	2,437,866
A		41,447		1,549,298		1,590,745
BBB		–		125,975		125,975
BB		–		16,144		16,144
B		8,912		49,118		58,030

	$	66,606	$	4,162,154	$	4,228,760

The credit quality for commercial and farm mortgage loans was determined based on an internal credit rating model which assigns a letter rating to each mortgage loan in the portfolio as an indicator of the credit quality of the mortgage loan. The internal credit rating model was designed based on rating agency methodology, then modified for credit risk associated with the Company’s mortgage lending process, taking into account such factors as projected future cash flows, net operating income, and collateral value. The model produces a credit rating score and an associated letter rating which is intended to align with S&P ratings as closely as possible. Information supporting the credit risk rating process is updated at least annually.

During 2018, the Company issued mortgage loans with a maximum interest rate of 5.57% and a minimum interest rate of 3.95% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated or acquired during the year ending December 31, 2018 at the time of origination was 69%. During 2017, the Company issued mortgage loans with a maximum interest rate of 7.35% and a minimum interest rate of 3.50% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated or acquired during the year ending December 31, 2017 at the time of origination was 77%. During 2016, the Company issued mortgage loans with a maximum interest rate of 8.71% and a minimum interest rate of 3.00% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated or acquired during the year ending December 31, 2016 at the time of origination was 91%.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

During 2018 and 2017, the Company did not reduce the interest rate on any outstanding mortgage loans.

The age analysis of mortgage loans and identification in which the Company is a participant or co-lender in a mortgage loan agreement is as follows for December 31, 2018 and 2017.

Farm

Commercial

Insured

All Other

Total

December 31, 2018

Recorded Investment (All)

(a) Current

50,576

–

4,435,184

4,485,760

(b) 30-59 Days Past Due

–

57,005

(d) 90-179 Days Past Due

7,875

–

7,875

(e) 180+ Days Past Due

–

24,014

Accruing interest 90-179 days past due

(a) Recorded investment

7,876

–

7,876

(b) Interest accrued

–

Participant or Co-lender in

Mortgage Loan Agreement

(a) Recorded Investment

31,524

–

1,286,604

1,318,128

Commercial

Farm

Insured

All Other

Total

December 31, 2017

Recorded Investment (All)

(a) Current

66,606

–

4,153,714

4,220,320

(b) 30-59 Days Past Due

–

3,641

–

(d) 90-179 Days Past Due

–

(e) 180+ Days Past Due

–

4,799

Participant or Co-lender in

Mortgage Loan Agreement

(a) Recorded Investment

34,964

–

1,252,751

1,287,715

At December 31, 2018 and 2017, respectively, multiple mortgage loans with a carrying value of $24,014 and $4,799 were non-income producing for the previous 180 days. There was no accrued interest related to these mortgage loans at December 31, 2018 or 2017. 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, 2018 and 2017 there were no taxes, assessments and other amounts advanced and not included in the mortgage loan total.

At December 31, 2018 and 2017, respectively, the Company held $0 and $49,118 in impaired loans with related allowance for credit losses of $0 and $26,618. There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2018 and 2017, respectively. There were no mortgage loans subject to participant or co-lender mortgage loan agreements for which the Company is restricted from unilaterally foreclosing on the mortgage loans. The average recorded investment in impaired loans during 2018 and 2017 was $49,118 and $10,793, respectively.

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
	2018			2017			2016
Balance at beginning of period	$	26,618		$	1,421		$	1,569
Additions, net charged to operations		–			26,618			174
Recoveries in amounts previously charged off		(26,618	)		(1,421	)		(322	)

Balance at end of period	$	–		$	26,618		$	1,421

As of December 31, 2018 and 2017, the Company had no mortgage loans derecognized as a result of foreclosure.

The Company accrues interest income on impaired loans to the extent deemed collectible (delinquent less than 91 days) and the loan continues to perform under its original or restructured contractual terms. Interest income on nonperforming loans generally is recognized on a cash basis. For the years ended December 31, 2018, 2017 and 2016, respectively, the Company recognized $852, $5,359 and $677 of interest income on impaired loans. Interest income of $860, $2,806 and $786, respectively, was recognized on a cash basis for the years ended December 31, 2018, 2017 and 2016.

At December 31, 2018 and 2017, the Company held a mortgage loan loss reserve in the AVR of $46,231 and $42,871, 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
	2018			2017				2018			2017
Pacific		28	%		28	%	Apartment		47	%		46	%
South Atlantic		22			20		Retail		21			23
Middle Atlantic		16			18		Office		16			17
W. North Central		8			8		Industrial		12			9
E. North Central		8			6		Other		2			2
W. South Central		7			8		Agricultural		1			2
Mountain		6			7		Medical		1			1
E. South Central		4			4
New England		1			1

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2018, 2017 and 2016, the Company had mortgage loans with a total net admitted asset value of $23,144, $83,445 and $81,895, 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, 2018, 2017 and 2016 related to such restructurings. At December 31, 2018 there were no commitments to lend additional funds to debtors owing receivables, however, there was one such commitment at December 31, 2017 for $3,000.

Real Estate

The fair value of property is determined based on an appraisal from a third-party appraiser, along with information obtained from discussions with internal asset managers and a listing broker regarding recent comparable sales data and other relevant property information. Impairment losses of $26,231, $4,033 and $7,500 were taken on real estate in 2018, 2017 and 2016, respectively, to write the book value down to the current fair value, and included in net realized capital gains (losses), within the Summary of Operations, for the year ended December 31, 2018.

As of December 31, 2018, there are 9 properties classified as held for sale. The Company is working with an external commercial real estate advisor firm to actively market the properties and negotiate with potential buyers. During 2018, 6 properties classified as held for sale were disposed of resulting in a net realized gain of $4,579, which was included in net realized capital gains (losses) within the Summary of Operations.

The Company also disposed of other properties during 2018 resulting in net realized gains of $26,756. Two properties were disposed of during 2017 resulting in a realized loss of ($69).

The carrying value of the Company’s real estate assets at December 31, 2018 and 2017 was as follows:


	2018		2017
Home office properties	$	52,466	$	84,719
Investment properties		18,953		104,325
Properties held for sale		43,027		–
	$	114,446	$	189,044

Accumulated depreciation on real estate at December 31, 2018 and 2017, was $72,083 and $71,624, respectively.

Other Invested Assets

During 2018, the Company recorded impairments of $3,363, $10,619, and $54,902 throughout 2018, 2017, and 2016. These impairments were primarily related to private equity funds, except for 2017, which also included an impairment for a tax credit fund. The impairments were taken because the decline in fair value of the funds were deemed to be other than temporary and a recovery in value from the remaining underlying investments in the funds were not anticipated. These write-downs are included in net realized capital gains (losses) within the statement of operations.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

During 2017, the Company reassigned its ownership interest in the Prisma Spectrum Fund for an additional interest in the Zero Beta Fund in the amount of $62,567, which resulted in a realized gain of $16,974.

Tax Credits

At December 31, 2018, the Company had ownership interests in forty-seven LIHTC investments. The remaining years of unexpired tax credits ranged from one to eleven, and the properties were not 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 2019 to 2029 is $55,107. Other LIHTC tax benefits recognized during 2018 was $76,141. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

At December 31, 2017, the Company had ownership interests in forty-nine LIHTC investments. The remaining years of unexpired tax credits ranged from one to eleven, and the properties were not 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 2018 to 2029 is $38,608. LIHTC tax credits recognized during 2017 was $12,366. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

The following tables provide the carrying value of transferable state tax credits gross of any related tax liabilities and total unused transferable tax credits by state and in total as of December 31, 2018 and 2017:

December 31, 2018

Description of State Transferable and Non-

transferable Tax Credits

State

Carrying Value

Unused Amount

Low-Income Housing Tax Credits

3,880

6,220

Economic Redevelopment and Growth Tax Credits

3,994

20,948

Total

7,874

27,168

December 31, 2017

Description of State Transferable and Non-

transferable Tax Credits

State

Carrying Value

Unused Amount

Low-Income Housing Tax Credits

1,332

7,400

Economic Redevelopment and Growth Tax Credits

2,982

14,449

Total

4,314

21,849

*The	unused amount reflects credits that the Company deems will be realizable in the period 2019-2030.

The Company did not have any non-transferable state tax credits.

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.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Derivatives

The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets (cash or securities) on the Company’s behalf in an amount equal to the difference between the net positive fair value of the contracts and an agreed upon threshold based on the credit rating of the counterparty. If the net fair value of all contracts with this counterparty is negative, then the Company is required to post similar assets (cash or securities). Fair value of derivative contracts, aggregated at a counterparty level at December 31, was as follows:


	2018			2017
Fair value - positive	$	2,109,376		$	1,098,479
Fair value - negative		(893,430	)		(909,070	)

At December 31, 2018, 2017 and 2016, the Company has recorded unrealized gains (losses) of $829,565 ($120,083) and ($591,186), respectively, for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. The Company did not recognize any unrealized gains or losses during 2018, 2017 and 2016 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

The maximum term over which the Company is hedging its exposure to the variability of future cash flows is approximately 25 years for forecasted hedge transactions. At December 31, 2018 and 2017, 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, 2018 and 2017, the Company has accumulated deferred gains in the amount of $0 and $1,898, 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 2019.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Summary of realized gains (losses) by derivative type for year-end December 31, is as follows:


	2018			2017			2016

Options:
Calls	$	45,514		$	2,067		$	1,524
Caps		–			(1,203	)		–
Puts		(38,626	)		(1,337	)		10,700

Total options	$	6,888		$	(473	)	$	12,224

Swaps:
Interest rate	$	(296,623	)	$	307,519		$	642,433
Credit		(14,247	)		10,107			3,046
Foreign exchange		–			–			(2,959	)
Total return		(198,766	)		(1,412,666	)		(510,883	)

Total swaps	$	(509,636	)	$	(1,095,040	)	$	131,637

Futures - net positions		(263,032	)		59,052			(337,977	)
Lehman settlements		537			1,195			1,241

Total realized gains (losses)	$	(765,243	)	$	(1,035,266	)	$	(192,875	)

Fair value of replicated assets and credit default swaps (as underlying), as of December 31, is as follows:


	2018		2017			2016
Replicated assets	$	3,685,810	$	3,568,730		$	4,576,931
Credit default swaps		40,443		71,130			41,602
Interest rate swaps		2,188		(27,891	)		(73,920	)

Capital gains (losses) related to credit swap transactions (which are primarily replication transactions), as of December 31, is as follows:


	2018			2017		2016
Capital gains (losses)	$	(4,435	)	$	10,107	$	3,046

As stated in Note 2, the Company replicates investment grade corporate bonds, sovereign debt, or commercial mortgage backed securities by writing credit default swaps. As a writer of credit swaps, the Company actively monitors the underlying asset, being careful to note any events (default or similar credit event) that would require the Company to perform on the credit swap. If such events would take place, a payment equal to the notional amount of the contract, less any potential recoveries as determined by the underlying agreement, will be made by the Company to the counterparty to the swap.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The following tables present the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at December 31, 2018 and 2017:


		2018

Rating Agency Designation of Referenced Credit Obligations ⁽¹⁾	NAIC Designation	Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps		Weighted Average Years to Maturity ⁽²⁾

AAA/AA/A	1
Single name credit default swaps ⁽³⁾		$	5,252	$	453,085		2.6
Credit default swaps referencing indices			(109)		10,000		40.9

Subtotal			5,143		463,085		3.4

BBB	2
Single name credit default swaps ⁽³⁾			28,016		1,754,450		2.7
Credit default swaps referencing indices			7,750		897,000		3.2

Subtotal			35,766		2,651,450		2.9

BB	3
Single name credit default swaps ⁽³⁾			2,655		135,500		2.6
Credit default swaps referencing indices			-		-		-

Subtotal			2,655		135,500		2.6

B	4
Single name credit default swaps ⁽³⁾			(2,809)		27,000		2.7
Credit default swaps referencing indices			-		-		-

Subtotal			(2,809)		27,000		2.7

CCC and lower	5
Single name credit default swaps ⁽³⁾			(312)		5,000		1.0
Credit default swaps referencing indices			-		-		-

Subtotal			(312)		5,000		1.0

In or near default	6
Single name credit default swaps ⁽³⁾			-		-		-
Credit default swaps referencing indices			-		-		-

Subtotal			-		-		-

Total		$	40,443	$	3,282,035		3.0

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)


			2017
Rating Agency Designation of Referenced Credit Obligations ⁽¹⁾	NAIC Designation		Estimated Fair Value of Credit Default Swaps		Maximum Amount of Future Payments under Credit Default Swaps	Weighted Average Years to Maturity ⁽²⁾
AAA/AA/A	1
Single name credit default swaps ⁽³⁾		$	55,569	$	2,051,835	3.0
Credit default swaps referencing indices			13,655		665,000	4.3
Subtotal			69,224		2,716,835	3.3
BBB	2
Single name credit default swaps ⁽³⁾			1,907		75,000	2.2
Credit default swaps referencing indices			-		-
Subtotal			1,907		75,000	2.2
BB	3
Single name credit default swaps ⁽³⁾			-		-
Credit default swaps referencing indices			-		-
Subtotal			-		-
B	4
Single name credit default swaps ⁽³⁾			-		-
Credit default swaps referencing indices			-		-
Subtotal			-		-
CCC and lower	5
Single name credit default swaps ⁽³⁾			-		-
Credit default swaps referencing indices			-		-
Subtotal			-		-
In or near default	6
Single name credit default swaps ⁽³⁾			-		-
Credit default swaps referencing indices			-		-
Subtotal			-		-
Total		$	71,131	$	2,791,835	3.3

⁽¹⁾	The rating agency designations are based on availability and the blending of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard and Poor’s Rating Services (“S&P”), and Fitch Ratings. If no rating is available from a rating agency, then an internally derived rating is used.

⁽²⁾	The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.

⁽³⁾	Includes corporate, foreign government and state entities.

The Company may enter into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. At December 31, 2018, the maximum amounts of potential future recoveries available to offset the $3,282,035 from the table above were $0. At December 31, 2017, the maximum amounts of potential future recoveries available to offset the $2,791,835 from the table above were $10,000.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2018 and 2017, the Company’s outstanding derivative instruments, shown in notional or contract amounts and fair value, are summarized as follows:


	Contract or Notional Amount*						Fair Value
	2018			2017			2018			2017
Derivative assets:
Credit default swaps	$	2,379,467		$	1,435,700		$	48,036		$	55,537
Currency swaps		129,622			57,608			15,288			8,349
Equity futures		17			(2	)		15,386			–
Equity swaps		3,668,687			408,478			278,712			9,760
Interest rate futures		38			30			20,473			–
Interest rate swaps		24,837,035			20,767,735			708,359			574,599
Options		19,736,876			13,536,702			835,056			170,119
Derivative liabilities:
Credit default swaps		1,262,568			1,756,135			(1,311	)		(12,107	)
Currency swaps		18,459			41,865			1,706			5,041
Equity futures		(1	)		–			870			–
Equity swaps		136,057			5,444,454			16,512			284,921
Interest rate futures		(17	)		–			6,730			–
Interest rate swaps		15,034,996			13,175,966			366,016			305,657
Options		(3,466,359	)		(7,052,116	)		314,840			45,443

*Futures

are presented in contract format. Swaps and options are presented in notional format.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Restricted Assets

The following tables show the pledged or restricted assets as of December 31, 2018 and 2017, respectively:

Gross Restricted (Admitted & Nonadmitted) 2018

Restricted Asset Category

Total General
Account (G/A)

G/A
Supporting
Separate
Account (S/A)

Total S/A
Restricted
Assets

S/A Assets
Supporting
G/A Activity

Total

Collateral held under security lending agreements

1,669,762

–

1,669,762

Subject to repurchase agreements

205,405

–

205,405

Subject to dollar repurchase agreements

361,063

–

361,063

FHLB capital stock

133,400

–

133,400

On deposit with states

37,249

–

37,249

Pledged as collateral to FHLB (including assets backing funding agreements)

4,405,503

–

4,405,503

Pledged as collateral not captured in other categories

637,227

–

637,227

Other restricted assets

1,172,934

–

1,172,934

Total Restricted Assets

8,622,543

–

8,622,543

Gross (Admitted & Nonadmitted) Restricted

Percentage

Restricted Asset Category

Total From
Prior Year
(2017)

Increase/
(Decrease)

Total
Nonadmitted
Restricted

Total
Admitted
Restricted

Gross
(Admitted &
Nonadmitted)
Restricted

to Total
Assets

Admitted
Restricted to
Total
Admitted
Assets

Collateral held under security lending

agreements

2,461,167

(791,405

)

–

1,669,762

1.44

Subject to repurchase agreements

116,023

89,382

–

205,405

0.18

Subject to reverse repurchase agreements

–

0.00

Subject to dollar repurchase agreements

278,626

82,437

–

361,063

0.31

Subject to dollar reverse repurchase agreements

–

0.00

FHLB capital stock

175,800

(42,400

)

–

133,400

0.11

On deposit with states

40,862

(3,613

)

–

37,249

0.03

Pledged as collateral to FHLB (including assets backing funding agreements)

4,999,339

(593,836

)

–

4,405,503

3.76

Pledged as collateral not captured in other categories

600,943

36,284

–

637,227

0.54

Other restricted assets

423,770

749,164

–

1,172,934

1.00

Total Restricted Assets

9,096,530

(473,987

)

–

8,622,543

7.37

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The amounts reported as Other restricted assets in the table above represent assets held in trust related to reinsurance.

The following tables show the pledged or restricted assets in other categories as of December 31, 2018 and 2017, respectively:

Gross (Admitted & Nonadmitted) Restricted 2018

Description of Assets

Total General
Account (G/A)

G/A Supporting
S/A Activity

Total Separate
Account (S/A)
Restricted
Assets

S/A Assets
Supporting
G/A Activity

Total

Derivatives

587,361

–

587,361

Secured Funding Agreements

46,723

–

46,723

AMBAC

3,143

–

3,143

Total

637,227

–

637,227

Gross (Admitted &

Nonadmitted) Restricted

Percentage

Description of Assets

Total From
Prior Year
(2017)

Increase/
(Decrease)

Total Current
Year Admitted
Restricted

Gross
(Admitted &
Nonadmitted)
Restricted to
Total Assets

Admitted
Restricted to
Total Admitted
Assets

Derivatives

577,146

10,215

587,361

0.50

Secured Funding Agreements

19,943

26,780

46,723

0.04

AMBAC

3,854

(711

)

3,143

0.00

Total

600,943

36,284

637,227

0.54

The following tables show the collateral received and reflected as assets within the financial statements as of December 31, 2018 and 2017:

2018

Collateral Assets

Carrying
Value

Fair Value

% of CV to
Total Assets
(Admitted
and
Nonadmitted)

% of CV
to Total
Admitted
Assets

Cash

1,379,285

3.05

3.06

Securities lending collateral assets

1,670,537

3.69

3.70

Other

3,999

0.01

Total Collateral Assets

3,053,821

6.75

6.77

Amount

% of Liability to
Total Liabilities

Recognized Obligation to return collateral asset

3,054,914

7.77

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)


	2017
Collateral Assets	Carrying Value		Fair Value			% of CV to Total Assets (Admitted and Nonadmitted)			% of CV to Total Admitted Assets
Cash	$	725,234	$	725,235			1.55	%		1.55	%
Securities lending collateral assets		2,460,919		2,460,919			5.25			5.27
Other		9,974		9,973			0.02			0.02

Total Collateral Assets	$	3,196,127	$	3,196,127			6.82	%		6.84	%


	Amount		% of Liability to Total Liabilities
Recognized Obligation to return collateral asset	$	3,197,011		7.97	%

Net Investment Income

Detail of net investment income is presented below:


	Year Ended December 31
	2018		2017		2016
Income:
Bonds	$	1,220,282	$	1,597,423	$	1,821,601
Preferred stocks		7,711		5,655		6,159
Common stocks		100,616		214,463		13,474
Mortgage loans on real estate		202,918		239,980		284,532
Real estate		20,190		20,862		22,698
Policy loans		38,144		39,825		41,872
Cash, cash equivalents and short-term		37,671		23,632		15,464
Derivatives		65,909		100,763		221,031
Other invested assets		72,460		294,772		81,017

Gross investment income		1,765,901		2,537,375		2,507,848
Less: investment expenses		201,761		167,604		142,071

Net investment income before amortization of IMR		1,564,140		2,369,771		2,365,777
Amortization of IMR		46,511		63,277		79,140

Net investment income	$	1,610,651	$	2,433,048	$	2,444,917

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Realized Capital Gains (Losses)

Net realized capital gains (losses) on investments, including OTTI, are summarized below:


	Realized Year Ended December 31
	2018			2017			2016
Bonds	$	(146,705	)	$	2,202,327		$	(38,959	)
Preferred stocks		1,539			535			933
Common stocks		(3,690	)		(1,978	)		885
Mortgage loans on real estate		(25,561	)		89,463			145
Real estate		5,104			(4,101	)		(3,377	)
Cash, cash equivalents and short-term investments		(41	)		(185	)		131
Derivatives		(765,780	)		(1,036,461	)		(185,514	)
Other invested assets		113,193			117,051			(143,751	)

Change in realized capital gains (losses), before taxes		(821,941	)		1,366,651			(369,507	)
Federal income tax effect		6,082			(197,793	)		(7,059	)
Transfer from (to) interest maintenance reserve		129,505			(1,711,437	)		69,383

Net realized capital gains (losses) on investments	$	(686,354	)	$	(542,579	)	$	(307,183	)

Unrealized Capital Gains (Losses)

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


	Change in Unrealized
	Year Ended December 31
	2018			2017			2016

Bonds	$	34,974		$	64,814		$	87,348
Preferred stocks		(859	)		(564	)		(102	)
Common stocks		1,874			1,468			95
Affiliated entities		157,530			398,521			420,679
Mortgage loans on real estate		26,618			(25,197	)		149
Cash equivalents and short-term investments		143			8			(141	)
Derivatives		1,052,471			(73,945	)		(282,801	)
Other invested assets		32,650			180,441			44,126

Change in unrealized capital gains (losses), before taxes		1,305,401			545,546			269,353
Taxes on unrealized capital gains (losses)		(54,921	)		124,074			(202,078	)

Change in unrealized capital gains (losses), net of tax	$	1,250,480		$	669,620		$	67,275

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

6. Premium and Annuity Considerations Deferred and Uncollected

Deferred and uncollected life premium and annuity considerations at December 31, 2018 and 2017 were as follows:


	2018				2017
	Gross		Net of Loading		Gross		Net of Loading
Life and annuity:
Ordinary first-year business	$	1,077	$	173	$	233	$	(644	)
Ordinary renewal business		94,263		84,248		88,791		78,408
Group life direct business		16,474		7,911		17,510		8,438
Credit direct business		13		13		55		55

	$	111,827	$	92,345	$	106,589	$	86,257

7. Policy and Contract Attributes

Insurance Liabilities

Policy reserves, deposit funds and policy claims at December 31, 2018 and 2017 were as follows:


	Year Ended December 31
	2018		2017

Life insurance reserves	$	11,431,333	$	11,854,033
Annuity reserves and supplementary contracts with life contingencies		13,793,355		13,180,233
Accident and health reserves (including long term care)		681,838		715,419
Total policy reserves	$	25,906,526		25,749,685

Deposit funds		915,773		1,042,297
Policy claims		485,636		399,919
Total policy reserves, deposit funds and claim liabilities	$	27,307,935	$	27,191,901

Life Insurance Reserves

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 Method. Reserves for universal life policies are based on account balances adjusted for the Commissioner’s Reserve Valuation Method.

Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium for periods beyond the date of death. Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Generally, 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.

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 less than 0.05% of ordinary life insurance in force at December 31, 2018 and 2017.

Annuity Reserves and Supplementary Contracts Involving Life Contingencies

Deferred annuity reserves are calculated according to the Commissioner’s Annuity Reserve Valuation Method including excess interest reserves to cover situations where the future interest guarantees plus the decrease in surrender charges are in excess of the maximum valuation rates of interest.

Reserves for immediate annuities and supplementary contracts with and without life contingencies are equal to the present value of future payments assuming interest rates ranging from 2.25 to 11.25 percent and mortality rates, where appropriate, from a variety of tables.

Annuity reserves also include guaranteed investment contracts (GICs) and funding agreements classified as life-type contracts as defined in SSAP No. 50, Classifications and Definitions of Insurance or Managed Care Contracts In Force. These liabilities have annuitization options at guaranteed rates and consist of floating interest rate and fixed interest rate contracts. The contract reserves are carried at the greater of the account balance or the value as determined for an annuity with cash settlement option, on a change in fund basis, according to the Commissioner’s Annuity Reserve Valuation Method.

For variable annuities with guaranteed living benefits and variable annuities with minimum guaranteed death benefits the Company complies with Valuation Manual section 21 (VM-21), Requirements for Principle-Based Reserves for Variable Annuities. VM-21 specifies statutory reserve requirements for variable annuity contracts with benefit guarantees (VACARVM) and without benefit guarantees and related products. The VM-21 reserve calculation 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 VM-21 is equal to the conditional tail expectation (CTE) Amount, but not less than the standard scenario amount (SSA).

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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 VM-21 for determining the SSA.

Accident and Health Liabilities

Accident and health policy reserves are equal to the greater of the gross unearned premiums or any required mid-terminal reserves plus net unearned premiums and the present value of amounts not yet due on both reported and unreported claims.

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, 2018 and 2017, the Company had insurance in force aggregating $78,179,488 and $93,922,936, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the Iowa Insurance Division. The Company established policy reserves of $1,667,131 and $1,816,099 to cover these deficiencies as of December 31, 2018 and 2017, 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.

Liabilities for losses and loss/claim adjustment expenses for accident and health contracts are estimated using statistical claim development models to develop best estimates of liabilities for medical expense business and using tabular reserves employing mortality/morbidity tables and discount rates meeting minimum regulatory requirements for other business. Unpaid claims include amounts for losses and related adjustment expenses and are estimates of the ultimate net costs of all losses, reported and unreported. These estimates are subject to the impact of future changes in claim severity, frequency and other factors.

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, 2018

2018

308,983

225,500

83,483

2017 and prior

157,201

(21,859

)

83,584

51,758

157,201

287,124

309,084

135,241

Active life reserve

657,543

632,180

Total accident and health reserves

814,744

767,421

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)


	Unpaid Claims Liability Beginning of Year		Claims Incurred			Claims Paid		Unpaid Claims Liability End of Year
Year ended December 31, 2017
2017	$	-	$	316,002		$	215,157	$	100,845
2016 and prior		1,425,390		(1,282,531	)		86,503		56,356
		1,425,390	$	(966,529	)	$	301,660		157,201

Active life reserve	$	3,953,654						$	657,543
Total accident and health reserves	$	5,379,044						$	814,744

The Company’s unpaid claims reserve was decreased by (21,859) and ($1,282,351) for the years ended December 31, 2018 and 2017, respectively, for health claims that were incurred prior to those balance sheet dates. The change in 2018 resulted primarily from variances in the estimated frequency of claims and claim severity. The change in 2017 resulted primarily from a new intercompany reinsurance agreement on the long term care block.

The balance in the liability for unpaid accident and health claim adjustment expenses as of December 31, 2018 and 2017 was $3,091 and $3,278, respectively. The Company incurred $16,534 and paid $16,722 of claim adjustment expenses during 2018, of which $1,771 of the paid amount was attributable to insured or covered events of prior years. The Company incurred -$17,765 and paid $15,543 of claim adjustment expenses during 2017, of which $1,190 of the paid amount was attributable to insured or covered events of prior years. The Company did not increase or decrease the claim adjustment expense provision for insured events of prior years during 2018.

Deposit-type Contracts

Tabular interest on funds not involving life contingencies has also been determined primarily by formula.

The Company issues certain funding agreements with well-defined class-based annuity purchase rates defining either specific or maximum purchase rate guarantees. However, these funding agreements are not issued to or for the benefit of an identifiable individual or group of individuals. These contracts are classified as deposit-type contracts in accordance with SSAP No. 50.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Withdrawal Characteristics of Annuity Reserves and Deposit Funds

A portion of the Company’s policy reserves and other policyholders’ funds (including separate account liabilities) relates to liabilities established on a variety of the Company’s annuity 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 2018
	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	1,186,894	$	–	$	–	$	1,186,894		1 %
At book value less surrender charge of 5% or more		502,104		–		–		502,104		1
At fair value		97,353		–		65,968,217		66,065,570		78
Total with adjustment or at fair value		1,786,351		–		65,968,217		67,754,568		80
At book value without adjustment (minimal or no charge or adjustment)		11,213,583		–		–		11,213,583		13
Not subject to discretionary withdrawal provision		5,744,774		38,792		254,223		6,037,789		7
Total annuity reserves and deposit liabilities		18,744,708		38,792		66,222,440		85,005,940		100 %

Less reinsurance ceded		3,225,879		–		–		3,225,879
Net annuity reserves and deposit liabilities	$	15,518,829	$	38,792	$	66,222,440	$	81,780,061


	December 31 2017
	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	981,060	$	–	$	–	$	981,060		1 %
At book value less surrender charge of 5% or more		309,366		–		–		309,366		1
At fair value		104,165		–		74,544,361		74,648,526		80
Total with adjustment or at fair value		1,394,591		–		74,544,361		75,938,952		82
At book value without adjustment (minimal or no charge or adjustment)		12,266,170		–		–		12,266,170		13
Not subject to discretionary withdrawal provision		4,681,115		44,915		75,027		4,801,057		5
Total annuity reserves and deposit liabilities		18,341,876		44,915		74,619,388		93,006,179		100 %

Less reinsurance ceded		4,149,269		–		-		4,149,269
Net annuity reserves and deposit liabilities	$	14,192,607	$	44,915	$	74,619,388	$	88,856,910

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Separate Accounts

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.

Information regarding the separate accounts of the Company as of and for the years ended December 31, 2018, 2017 and 2016 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, 2018

–

11,732

9,160,718

9,172,450

Reserves for separate accounts as of December 31, 2018 with assets at:

Fair value

–

23,984

14,808

69,455,743

69,494,535

Amortized cost

–

646,872

–

646,872

Total as of December 31, 2018

–

670,856

14,808

69,455,743

70,141,407

Reserves for separate accounts by withdrawal characteristics as of December 31, 2018:

Subject to discretionary withdrawal

–

With fair value adjustment

–

At fair value

–

69,201,520

At book value without fair value adjustment and with current surrender charge of less than 5%

–

646,872

–

646,872

Subtotal

–

646,872

–

69,201,520

69,848,392

Not subject to discretionary withdrawal

–

23,984

14,808

254,223

293,015

Total separate account reserve liabilities at December 31, 2018

–

670,856

14,808

69,455,743

70,141,407

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, 2017	$	–	$	–	$	10,782	$	8,705,180	$	8,715,962


Reserves for separate accounts as of December 31, 2017 with assets at:
Fair value	$	–	$	25,346	$	19,569	$	78,023,636	$	78,068,551
Amortized cost		–		633,003		–		–		633,003
Total as of December 31, 2017	$	–	$	658,349	$	19,569	$	78,023,636	$	78,701,554


Reserves for separate accounts by withdrawal characteristics as of December 31, 2017:
Subject to discretionary withdrawal	$	–	$	–	$	–	$	–	$	–
With fair value adjustment		–		–		–		–		–
At fair value		–		–		–		77,948,609		77,948,609
At book value without fair value adjustment and with current surrender charge of less than 5%		–		633,003		–		–		633,003
Subtotal		–		633,003		–		77,948,609		78,581,612
Not subject to discretionary withdrawal		–		25,346		19,569		75,027		119,942
Total separate account reserve liabilities at December 31, 2017	$	–	$	658,349	$	19,569	$	78,023,636	$	78,701,554

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, 2016	$	–	$	64	$	10,970	$	8,767,639	$	8,778,673


Reserves for separate accounts as of December 31, 2016 with assets at:
Fair value	$	–	$	21,505	$	20,001	$	70,154,420	$	70,195,926
Amortized cost		–		633,674		–		–		633,674
Total as of December 31, 2016	$	–	$	655,179	$	20,001	$	70,154,420	$	70,829,600


Reserves for separate accounts by withdrawal characteristics as of December 31, 2016:
Subject to discretionary withdrawal	$	–	$	–	$	–	$	–	$	–
With fair value adjustment		–		–		–		–		–
At fair value		–		–		–		70,116,163		70,116,163
At book value without fair value adjustment and with current surrender charge of less than 5%		–		633,674		–		–		633,674
Subtotal		–		633,674		–		70,116,163		70,749,837
Not subject to discretionary withdrawal		–		21,505		20,001		38,257		79,763
Total separate account reserve liabilities at December 31, 2016	$	–	$	655,179	$	20,001	$	70,154,420	$	70,829,600

A reconciliation of the amounts transferred to and from the Company’s separate accounts is presented below:


	Year Ended December 31
	2018			2017			2016
Transfer as reported in the summary of operations of the separate accounts statement:
Transfers to separate accounts	$	9,198,986		$	8,742,039		$	8,767,931
Transfers from separate accounts		(12,522,352	)		(11,223,730	)		(8,507,967	)
Net transfers to separate accounts		(3,323,366	)		(2,481,691	)		259,964
Miscellaneous reconciling adjustments		(152,560	)		444,099			469,247
Net transfers as reported in the statements of operations of the life, accident and health annual statement	$	(3,475,926	)	$	(2,037,592	)	$	729,211

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The legal insulation of separate account assets prevents such assets from being generally available to satisfy claims resulting from the general account. At December 31, 2018 and 2017, the Company’s separate account statement included legally insulated assets of $71,917,551 and $80,820,068, respectively. The assets legally insulated from general account claims at December 31, 2018 and 2017 are attributed to the following products:


	2018		2017
Group annuities	$	23,941,313	$	27,892,661
Variable annuities		43,329,322		48,043,845
Fixed universal life		695,569		665,407
Variable universal life		3,737,005		3,952,973
Variable life		198,613		222,858
Modified separate accounts		4,813		29,090
Registered Market Value
Annuity Product - SPL		10,916		13,234
Total separate account assets	$	71,917,551	$	80,820,068

Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. To compensate the general account for the risk taken, the separate account paid risk charges of $519,373, $505,695, $483,307, $434,084, and $342,823, to the general account in 2018, 2017, 2016, 2015, and 2014, respectively. During the years ended December 31, 2018, 2017, 2016, 2015, and 2014 the general account of the Company had paid $47,746, $43,334, $77,232, $223,304, and $35,985 respectively, toward separate account guarantees.

At December 31, 2018 and 2017, the Company reported guaranteed separate account assets at amortized cost in the amount of $643,109 and $616,456, respectively, based upon the prescribed practice granted by the State of Iowa as described in Note 2. These assets had a fair value of $679,964 and $669,442 at December 31, 2018 and 2017, respectively, which would have resulted in an unrealized gain of $36,855 and $52,984, respectively, had these assets been reported at fair value.

The Company does not participate in securities lending transactions within the separate account.

8. 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.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Premiums earned reflect the following reinsurance amounts:


	Year Ended December 31
	2018			2017			2016
Direct premiums	$	14,431,051		$	13,588,837		$	14,081,227
Reinsurance assumed - non affiliates		1,268,615			1,351,628			1,412,887
Reinsurance assumed - affiliates		125,367			325,332			113,578
Reinsurance ceded - non affiliates		(3,040,806	)		(15,100,457	)		(2,018,612	)
Reinsurance ceded - affiliates		(1,361,992	)		(3,295,966	)		489,464
Net premiums earned	$	11,422,235		$	(3,130,626	)	$	14,078,544

Effective October 1, 2018, the Company recaptured credit insurance business from an affiliate, Ironwood Re Corp. The Company released $1,812 in funds withheld liability, recaptured $2,430 of policyholder reserves and $426 of claim reserves. The transaction resulted in a pre-tax loss of $1,045 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 cession of this business to Ironwood in the amount of $1,262 ($821 after-tax) with a corresponding charge to unassigned surplus.

Effective October 1, 2018, an affiliate, Transamerica Premier Life Insurance Company (TPLIC) recaptured group health insurance business from the Company. The Company paid consideration of $33,799 and released $13,767 of policyholder reserves, $980 of unearned premium reserve and $7,366 of claim reserves. The transaction resulted in a pre-tax loss of $11,686 which has been included in the Statement of Operations.

Effective July 1, 2018, the Company recaptured term insurance business from an affiliate, Stonebridge Reinsurance Company. The Company received cash of $137,447, recaptured $680,477 in policyholder reserves, $28,815 in claim reserves, net due premiums and commissions of $11,764 and $10,560 in interest maintenance reserve liability. The transaction resulted in a pre-tax loss of $570,641 which was included in the Statement of Operations. In addition, as a result of this transaction, amounts previously deferred to surplus under SSAP No. 61R and Appendix A-791, were released resulting in an increase to earnings, net of tax, of $184,144.

Effective July 1, 2018, the Company entered into a reinsurance agreement to cede an in force block of term insurance business to SCOR Global Life Americas. The Company paid consideration of $260,000, ceded $674,799 in policyholder reserves, $27,884 in claim reserves, $8,289 in due premium (net of commissions), and $13,229 in interest maintenance reserves liability. The transaction resulted in a pre-tax gain of $447,623 which will be identified separately on the insurer’s statutory financial statement as a surplus item. Recognition of the surplus increase as income shall be reflected on a net of tax basis as earnings emerge from the business reinsured.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

to Wilton Re. As a result of the mutual concessions between the parties, Wilton Re will pay the Company $47,221. In addition, the Company released a reinsurance receivable in the amount of $3,234 related to the initial proposed final NSS that was used for closing. The net pretax impact to Capital and Surplus of these adjustments was $43,986.

Effective June 29, 2018, the Company and Wilton Re agreed to Amendment No. 1 to the Reinsurance Agreement dated June 28, 2017. This amendment converted risks that were ceded on a modified coinsurance basis to a coinsurance basis by reducing the amount of reinsurance ceded in the NSS and reducing the modco reserves ceded. At the close of the original transaction, the company offset the reserve ceded related to a modified separate account contract. Within the amendment to the Master Transaction Agreement, the Company agrees to pay Wilton Re an amount in cash equal to $95,386, which will be offset in full against an equivalent balance of other amounts due and payable to the Company, such that no cash or other assets shall be required to be transferred by the Parties.

Effective December 1, 2017, the Company entered into an agreement with TPLIC, an affiliate, to convert the modified coinsurance agreement to coinsurance and funds withheld. As a result, TLIC transferred cash and invested assets to TPLIC. Assets that were not able to be transferred were retained in a FWH portfolio by TLIC until they mature, are sold or can be transferred. The Company transferred cash and invested assets with a market value of $6,487,360 to TPLIC. The reserves of $4,543,045 and claim reserves of $199,940 net of due and advance premium of $5,815 previously held on a modco basis were transferred to TPLIC. As a result of the transaction $18,642 existing IMR and $1,125,506 newly created IMR ($1,731,547 pre-tax gains) was released and transferred to TPLIC. The transaction results in a pre-tax loss of $606,306 which has been included in the Statement of Operations. Realized gains on the sale of assets supporting the business resulted in gains that offset the impact of the pre-tax loss related to the transaction. The Company ceded modified coinsurance reserves of $4,536,010 as of December 31, 2016 for certain stand-alone long-term care policies under the indemnity reinsurance agreement with TPLIC.

Effective October 1, 2017, the Company recaptured credit life business from an affiliate, Southwest Equity Life Insurance Company. Subsequently, the mortgage life and disability insurance business was recaptured from the Company by TPLIC.

Effective October 1, 2017, the Company recaptured term insurance business from an affiliate, Transamerica International Reinsurance (Bermuda) Ltd. The Company received cash of $346,458, recaptured $1,260,767 in policyholder reserves, $35,798 claim reserves, $3,502 commissions payable and $26,595 due premium. The transaction results in a pre-tax loss of $927,013 which has been included in the Statement of Operations. The Company subsequently entered into an agreement with SCOR Global Life Americas to assume business related to this recapture at the same consideration. The gain related to this reinsurance agreement was deferred to surplus. The combination of the transaction results in no impact to the surplus of the Company.

Effective October 1, 2017, the Company recaptured term insurance business from an affiliate, LIICA Re I. The Company received cash of $113,953, recaptured $724,596 in policyholder reserves, $19,768 claim reserves and $11,124 in interest maintenance reserve liability. The transaction results in a pre-tax loss of $641,535 which has been included in the Statement of Operations. The Company subsequently entered into an agreement with SCOR Global Life Americas to assume business related to this recapture.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Effective October 1, 2017, the Company recaptured certain term insurance business from an affiliate, Transamerica Pacific Insurance Company (TPIC). The company received cash of $1,902 and recaptured $17,310 in policyholder reserves, $2,897 claim reserves and $325 due premium (net of commission). The transaction results in a pre-tax loss of $17,980 which has been included in the Statement of Operations. The Company subsequently entered into an agreement with SCOR Global Life Americas to assume business related to this recapture.

Effective October 1, 2017, the Company novated the reinsurance agreement between TPIC and Transamerica International Re (Bermuda) Ltd. No cash or invested asset or net reserves were transferred as a result of this novation. The transaction results in no pre-tax gain or loss.

Subsequently effective October 1, 2017, the Company entered into a reinsurance agreement to cede an in force block of term insurance business to SCOR Global Life Americas. The company accrued to a funds withheld payable of $314,000 ceding $737,678 in policyholder reserves, $21,886 claim reserves, $10,958 due premium (net of commissions), offset by a reinsurance recoverable of $6,000 receivable and $11,124 in interest maintenance reserves liability. The transaction results in a pre-tax gain of $451,730 which has been identified separately on the insurer’s statutory financial statement as a surplus item and recognition of the surplus increase as income shall be reflected on a net of tax basis as earnings emerge from the business reinsured. The funds withheld balance was paid to SCOR Global Life Americas on December 29, 2017.

On June 28, 2017, Transamerica completed a transaction to reinsure its payout annuity business and Bank Owned Life Insurance/Corporate Owned Life Insurance business (BOLI/COLI). Under the terms of the Master Agreement, the Company entered into a 100% coinsurance (general account liabilities)/100% modified coinsurance (separate account liabilities) reinsurance agreement with Wilton Reassurance Company, with an effective date of April 1, 2017. The Company transferred assets in the amount of $8,312,263, which included a negative ceding commission of $112,183, and released policy and deposit-type reserves of $7,186,330 and reinsurance deposit, policy loans and other balances related to the business of $191,144. Modified coinsurance separate account reserves of $3,695,331 were retained by the Company. As a part of the transaction, the Company realized $972,360 in net gains on the assets that were transferred of which $627,872 were deferred to IMR. The IMR liability simultaneously was released along with historical deferrals associated with the blocks of business in the amount of $921,322, resulting in a pretax loss of $51,266, which has been included in the Statement of Operations.

Effective January 1, 2017, three affiliated reinsurance treaties with TLB were amended to include the cession of all business with secondary guarantee universal life (SGUL) issued or novated by the Company. The Company increased cessions from 80 to 100% coinsurance and increased the expense allowance by fifteen basis points of account value on all business ceded based on the end of the period account value. As consideration for the cessions, the Company received cash and invested assets of $206,742, equal to the additional U.S. statutory reserves, resulting in no gain or loss on the transaction.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

Effective October 1, 2016, the Company recaptured fixed annuity and funding agreement business previously ceded to TPLIC, an affiliate, on a coinsurance basis. The Company received cash and invested assets of $3,017,999 and recaptured policy and claim reserves of $3,030,564. A reinsurance receivable from TPLIC was established for the remaining $12,565 of assets to be transferred in support of the transferred policy and claim reserves. In addition, TPLIC transferred $82,218 of transfer date IMR to the Company. The Company paid net consideration to TPLIC resulting in a pre-tax loss of $40,086, which has been included in the Statement of Operations.

Effective October 1, 2016, TPLIC recaptured medium-term note funding agreements previously ceded to the Company on a coinsurance basis. The Company transferred cash and invested assets of $114,175 and released deposit-type reserves of $112,238 and a hedge novation of $2,228. A payable to TPLIC of $292 was established for remaining assets to be transferred in support of the hedge novation. The Company received consideration from TPLIC resulting in a pre-tax gain of $2,936 which has been included in the Statement of Operations.

Effective September 30, 2016, the Company ceded term life business to TWRI, an affiliate, on a coinsurance funds withheld basis. The Company paid an initial reinsurance premium of $41,565, transferred other net assets of $2,042, and released life and claim reserves of $296,656 and $21,926, respectively, resulting in a pre-tax gain of $274,974 ($178,733 net of tax) which has been credited directly to unassigned surplus. Effective January 1, 2017, an amendment was made to the reinsurance agreement with TWRI to allow reinsurance of post December 31, 2016 issue dates up to June 30, 2017 issue dates. The policies with issue dates in 2017 are subject to a $50 million maximum in total annualized premium.

The Company received reinsurance recoveries in the amount of $3,726,987, $3,735,152 and $3,220,276, during 2018, 2017 and 2016, respectively. At December 31, 2018 and 2017, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $1,061,987 and $285,160. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2018 and 2017 of $42,222,952 and $41,782,338, respectively, of which $20,685,628 and $20,587,204 were ceded to affiliates.

During 2018, 2017 and 2016 amortization of deferred gains associated with previously transacted reinsurance agreements was released into income in the amount of $514,911 ($335,855 after tax), $90,556 ($62,716 after tax) and $255,425 ($176,996 after tax), respectively.

The Company reports a reinsurance deposit receivable of $0 and $0 as of December 31, 2018 and 2017, respectively. In 1996, the Company entered into a reinsurance agreement with an unaffiliated company where, for a net consideration of $59,716, the Company 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 2018, 2017 and 2016, the Company obtained letters of credit of $56,994, $55,017 and $98,006, 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.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

9. Income Taxes

The net deferred income tax asset at December 31, 2018 and 2017 and the change from the prior year are comprised of the following components:


	December 31, 2018
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	1,594,229		$	129,592		$	1,723,821
Statutory Valuation Allowance Adjustment		–			–			–
Adjusted Gross Deferred Tax Assets		1,594,229			129,592			1,723,821
Deferred Tax Assets Nonadmitted		96,652			–			96,652
Subtotal (Net Deferred Tax Assets)		1,497,577			129,592			1,627,169
Deferred Tax Liabilities		803,480			206,891			1,010,371
Net Admitted Deferred Tax Assets	$	694,097		$	(77,299	)	$	616,798


	December 31, 2017
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	1,460,587		$	135,094		$	1,595,681
Statutory Valuation Allowance Adjustment		2,432			–			2,432
Adjusted Gross Deferred Tax Assets		1,458,155			135,094			1,593,249
Deferred Tax Assets Nonadmitted		65,996			–			65,996
Subtotal (Net Deferred Tax Assets)		1,392,159			135,094			1,527,253
Deferred Tax Liabilities		774,613			217,917			992,530
Net Admitted Deferred Tax Assets	$	617,546		$	(82,823	)	$	534,723


	Change
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	133,642		$	(5,502	)	$	128,140
Statutory Valuation Allowance Adjustment		(2,432	)		–			(2,432	)
Adjusted Gross Deferred Tax Assets		136,074			(5,502	)		130,572
Deferred Tax Assets Nonadmitted		30,656			–			30,656
Subtotal (Net Deferred Tax Assets)		105,418			(5,502	)		99,916
Deferred Tax Liabilities		28,867			(11,026	)		17,841
Net Admitted Deferred Tax Assets	$	76,551		$	5,524		$	82,075

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
	2018		2017		Change
Deferred Tax Assets:
Ordinary
Policyholder reserves	$	535,134	$	349,887	$	185,247
Investments		203,467		184,414		19,053
Deferred acquisition costs		224,432		146,018		78,414
Tax credit carry-forward		349,547		522,986		(173,439	)
Foreign CFC Holdings		116,610		97,641		18,969
Policyholder Reserve Transitional Amount		100,487		103,545		(3,058	)
Other (including items <5% of ordinary tax assets)		64,552		56,096		8,456
Subtotal		1,594,229		1,460,587		133,642

Statutory valuation allowance adjustment		–		2,432		(2,432	)
Nonadmitted		96,652		65,996		30,656
Admitted ordinary deferred tax assets		1,497,577		1,392,159		105,418

Capital:
Investments		129,592		135,094		(5,502	)
Other (including items <5% of total total capital tax assets)		–		–		–
Subtotal		129,592		135,094		(5,502	)

Statutory valuation allowance adjustment		–		–		–
Nonadmitted		–		–		–
Admitted capital deferred tax assets		129,592		135,094		(5,502	)
Admitted deferred tax assets	$	1,627,169	$	1,527,253	$	99,916

	Year Ended December 31
	2018		2017		Change
Deferred Tax Liabilities:
Ordinary
Investments	$	548,455	$	525,495	$	22,960
Policyholder reserves		34,570		42,066		(7,496	)
Foreign CFC Holdings		90,887		77,311		13,576
Policyholder Reserve Transitional Amount		110,176		110,804		(628	)
Other (including items <5% of total ordinary tax liabilities)		19,392		18,937		455
Subtotal		803,480		774,613		28,867
Capital
Investments		206,891		217,917		(11,026	)
Other (including items <5% of total capital tax liabilities)		–		–		–
Subtotal		206,891		217,917		(11,026	)
Deferred tax liabilities		1,010,371		992,530		17,841
Net deferred tax assets/liabilities	$	616,798	$	534,723	$	82,076

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) (HR 1, Pub. L. 115-97) became law. As a result, the Company reported a valuation allowance of $2,432 against its minimum tax credit carryover deferred tax assets to reflect the estimated sequestration fee expected to be charged on refunded credits in the 2017 financial statements. On January 14th, 2019, the Internal Revenue Service issued an announcement on its official website stating that certain refundable minimum tax credits will not be subject to sequestration. As a result, the Company released its valuation allowance related to sequestration in the 2018 financial statements.

On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) (HR 1, Pub. L. 115-97) became law reducing the federal tax rate to 21%. As a result, the Company reduced its net deferred tax asset balance by $9,524, excluding $42,450 of net deferred tax asset reduction on unrealized gains/(losses) in the 2017 financial statements.

The effects of the U.S. tax reform were reflected in the 2017 financial statements as determined or as reasonably estimated provisional amounts based on available information subject to interpretation in accordance with the SEC’s Staff Accounting Bulletin No. 118 (SAB 118), as adopted by NAIC SAPWG INT 18-01. SAB 118 provides guidance on accounting for the effects of U.S. tax reform where the Company’s determinations are incomplete but the Company can determine a reasonable estimate. The TCJA related disclosures and figures in the 2018 financials represent final impacts with no estimated figures remaining.

As a result of the TCJA, the Company’s tax reserve deductible temporary difference increased by $52,726. This change results in an offsetting $(52,726) taxable temporary difference that will be amortized into taxable income evenly over the eight years subsequent to 2017. The tax reserve deductible temporary difference increased $18,569 from the estimate in the 2017 financials due to model refinements during 2018 to implement the Tax Cuts and Jobs Act provisions.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

As discussed in Note 2, for the years ended December 31, 2018 and 2017 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, 2018

Ordinary

Capital

Total

Admission Calculation Components SSAP No. 101

2(a)

Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks

–

2(b)

Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)

583,655

33,143

616,798

1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date

583,655

33,143

616,798

2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold

XXX

774,224

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

913,922

96,449

1,010,371

2(d)

Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))

1,497,577

129,592

1,627,169

December 31, 2017

Ordinary

Capital

Total

Admission Calculation Components SSAP No. 101

2(a)

Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks

–

2(b)

506,608

28,115

534,723

1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date

2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold

XXX

912,852

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

885,551

106,979

992,530

2(d)

Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))

1,392,159

135,094

1,527,253

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	$	–	$	–		$	–
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)		77,047		5,028			82,075
	1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		77,047		5,028			82,075
	2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX			(138,628	)
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		28,371		(10,530	)		17,841
2(d)	Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	105,418	$	(5,502	)	$	99,916


	December 31
	2018			2017			Change
Ratio Percentage Used To Determine Recovery
Period and Threshold Limitation Amount		836	%		901	%		-65	%


Amount of Adjusted Capital and Surplus Used To
Determine Recovery Period and Threshold
Limitation in 2(b)2 above	$	5,161,496		$	6,085,680		$	(924,184	)

The impact of tax planning strategies at December 31, 2018 and 2017 was as follows:


	December 31, 2018
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
(% of Total Adjusted Gross DTAs)		0	%		0	%		0	%


(% of Total Net Admitted Adjusted Gross DTAs)		2	%		24	%		4	%

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)


		December 31, 2017
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
(% of Total Adjusted Gross DTAs)		0	%		0	%		0	%


(% of Total Net Admitted Adjusted Gross DTAs)		8	%		16	%		8	%

The Company’s tax planning strategies do not include the use of reinsurance-related tax planning strategies.

Current income taxes incurred consist of the following major components:


	Year Ended December 31
	2018			2017			Change
Current Income Tax

Federal	$	(29,827	)	$	(1,047,121	)	$	1,017,294
Foreign		–			31			(31	)
Subtotal		(29,827	)		(1,047,090	)		1,017,263
Federal income tax on net capital gains		(6,082	)		197,793			(203,875	)
Utilization of capital loss carry-forwards		–			–			–
Other		–			–			–
Federal and foreign income taxes incurred	$	(35,909	)	$	(849,297	)	$	813,388


	Year Ended December 31
	2017			2016			Change
Current Income Tax

Federal	$	(1,047,121	)	$	(138,750	)	$	(908,371	)
Foreign		31			(1	)		32
Subtotal		(1,047,090	)		(138,751	)		(908,339	)
Federal income tax on net capital gains		197,793			7,059			190,734
Utilization of capital loss carry-forwards		–						–
Other		–			–			–
Federal and foreign income taxes incurred	$	(849,297	)	$	(131,692	)	$	(717,605	)

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 to income before tax as follows:


	Year Ended December 31
	2018			2017			2016

Current income taxes incurred	$	(35,909	)	$	(849,297	)	$	(131,692	)

Change in deferred income taxes (without tax on unrealized gains and losses)		(167,651	)		902,675			(189,046	)

Total income tax reported	$	(203,560	)	$	53,378		$	(320,738	)

Income before taxes	$	(1,503,967	)	$	1,466,016		$	79,690
		21.00%			35.00%			35.00%

Expected income tax expense (benefit) at statutory rate	$	(315,833	)	$	513,105		$	27,892

Increase (decrease) in actual tax reported resulting from:

Dividends received deduction	$	(29,121	)	$	(74,961	)	$	(74,012	)
Tax credits		(51,984	)		(53,734	)		(25,037	)
Tax adjustment for IMR		(12,999	)		(747,003	)		669
Surplus adjustment for in-force ceded		3,699			80,818			608
Nondeductible expenses		1,476			1,202			1,049
Deferred tax benefit on other items in surplus		166,621			131,796			(233,112	)
Prior year tax return adjustment		26,916			4,179			1,486
Life-owned life insurance		(1,790	)		(2,975	)		(2,966	)
Dividends from certain foreign corporations		2,895			2,639			1,620
Statutory valuation allowance		2,432			(2,432	)		–
Pre-tax income of SMLLC’s		15,812			230,025			14,093
Tax-free distribution		–			129,644			–
Intercompany Dividends		(19,031	)		(150,570	)		(2,966	)
Partnership Permanent Adjustment		(2,407	)		(2,136	)		(1,914	)
Change in tax rates		–			9,524			–
Deferred only transfer - IWA		–			(16,157	)		–
Audit Adjustment - Permanent		–			–			(21,196	)
Other		9,754			414			(6,952	)

Total income tax reported	$	(203,560	)	$	53,378		$	(320,738	)

The Company’s federal income tax return is consolidated with other included affiliated companies. Please see attached listing of companies in the Appendix A. The method of allocation between the companies is subject to a written tax allocation agreement. Under the terms of the tax allocation agreement, allocations are based on separate income tax return calculations. The Company is entitled to recoup federal income taxes paid in the event the future losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in the year generated. The Company is also entitled to recoup federal income taxes paid in the event the losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in any carryback or carryforward year when so applied. Intercompany income tax balances are settled within thirty days of payment to or filing with the Internal Revenue Service. A tax return has not been filed for 2018.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The amounts, origination dates and expiration dates of operating loss and tax credit carryforwards available for tax purposes:


Description		Amount	Origination Dates	Expiration Dates
General Business Credit	$	34,914	12-31-2008	12-31-2028
General Business Credit		51,944	12-31-2009	12-31-2029
General Business Credit		54,087	12-31-2010	12-31-2030
General Business Credit		45,647	12-31-2011	12-31-2031
General Business Credit		31,125	12-31-2012	12-31-2032
General Business Credit		24,880	12-31-2013	12-31-2033
General Business Credit		19,912	12-31-2014	12-31-2034
General Business Credit		14,991	12-31-2015	12-31-2035
General Business Credit		3,604	12-31-2016	12-31-2036
General Business Credit		7,119	12-31-2017	12-31-2037
General Business Credit		22,758	12-31-2018	12-31-2038
Total General Business Credit	$	310,981
Foreign Tax Credit	$	24,051	12-31-2017	12-31-2027
Total Foreign Tax Credit	$	24,051

Gross AMT Credit Recognized as:


1a	Current year recoverable	$	–
1b	Deferred tax asset (DTA)		14,515
2	Beginning Balance of AMT Credit Carryover		48,869
3	Amounts Recovered+		34,354
4	Adjustments		–
5	Ending Balance of AMT Credit Carryover (5=2-3-4)		14,515
6	Reduction for Sequestration		–
7	Nonadmitted by Reporting Entity		–
8	Reporting Entity Ending Balance (8=5-6-7)	$	14,515

The Company elected to account for its alternative minimum tax credit (AMT Credit) carryforward as a deferred tax asset.

The Company incurred no income taxes during 2018, 2017, and 2016, available for recoupment in the event of future net capital losses.

The total amount of the unrecognized tax benefits that if recognized, would affect the effective income tax rate:


	December 31,
	2018		2017
Unrecognized tax benefits, opening balance	$	11,091	$	9,763
Additions for - tax positions of prior years		2,538		1,328

Unrecognized tax benefits, ending balance	$	13,629	$	11,091

The Company does not expect that the total amount of unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company classifies interest and penalties related to income taxes as income tax expense. The Company’s interest expense/(benefit) related to income taxes for the years ending in December 31, 2018, 2017, and 2016 is $5,183, $(14,348), and $864, respectively. The total interest/(payable) receivable balance as of December 31, 2018 and 2017 is $(1,381) and $3,577, respectively. The Company recorded no liability for penalties.

The Company modified its calculation of dividends that are eligible for dividends received deduction in 2016. This resulted in recording a permanent tax benefit of $20,250 in the Company’s 2016 financial statement for years 2011-2015. This was treated as a change in estimate.

The Company’s federal income tax returns have been examined by the Internal Revenue Service and an examination is in progress for the year 2009 through 2013. The Company believes that there are adequate defenses against or sufficient provisions established related to any open or contested tax positions.

10. Capital and Surplus

The Company had authorized 1,000,000 common stock shares at $10 per share par value of which 676,190 shares were issued and outstanding at December 31, 2018 and 2017.

The Company has 42,500 Series A preferred shares authorized, 42,500 shares issued, and 42,500 shares held by the Company as treasury stock, with a par value of $10. On December 26, 2006, the Company repurchased its Series A preferred shares for $58,000. The Company also has 250,000 Series B preferred non-voting shares authorized at $10 per share par value, of which 0 shares were issued and outstanding at December 31, 2018. The Company paid its parent company to redeem the Series B non-voting preferred stock at par value on the following dates: December 13, 2018: 55,930 shares for $559; December 27, 2017: 29,787 shares for $297 and December 22, 2016: 31,437 shares for $314.

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 2019, without the prior approval of insurance regulatory authorities, is $577,829.

On December 31, 2018, the Company provided a non-cash distribution of the Pension Plan for U.S. Agents of TLIC asset valued at $60,347 to its parent company in order to facilitate the approved plan merger of the Pension Plan for U.S. Agents of TLIC maintained by the Company into the Transamerica Employee Pension Plan maintained by Transamerica Corporation.

The Company paid an extraordinary preferred stock dividend and an extraordinary common stock dividend of $16,732 and $47,488, respectively, to its parent company on December 13, 2018.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company paid an ordinary preferred stock dividend and an ordinary common stock dividend of $16,920 and $283,080, respectively, to its parent company on June 29, 2018.

On September 12, 2017 and June 28, 2017, the Company paid ordinary common stock dividends of $240,000 and $188,393, respectively, to its parent company.

The Company provided cash returns of capital to its parent company in the amount of $558,740 on December 13, 2018. On June 28 and December 21, 2017, the Company paid a cash return of capital in the amount of $372,572 and $50,000, respectively, to its parent.

The Company received ordinary common stock dividends from Transamerica Financial Life Insurance Company (TFLIC) in the amounts of $12,105 on June 29, 2018, $9,075 on December 21, 2017 and $10,289 on June 28, 2017. On December 13, 2018 and December 21, 2017, the Company received preferred stock dividends of $430 and $3, respectively, from TFLIC.

On December 18, 2018 and June 15, 2017, the Company received common stock dividends of $23,520 and $188,400, respectively, from its subsidiary TLB.

On December 13, 2018, the Company received $7,162 from TFLIC as a redemption of preferred stock.

On August 6, 2018, the Company received a common stock dividend in the amount of $140,000 from SRC.

On December 31, 2018, the Company made a non-cash capital contribution in the amount of $1,971 to REAP 3A.

The Company received a return of capital of $27,000 on June 28, 2017 from its subsidiary Investors Warranty of America, LLC (IWA).

On December 28, 2017, the Company received a return of capital of $135,000 and dividends of $221,506 from LIICA Holdings, LLC, a subsidiary.

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, 2018, the Company meets the minimum RBC requirements.

On September 30, 2002, Life Investors Insurance Company of America (LIICA), which merged in to the Company effective October 2, 2008, received $150,000 from TA Corp 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 IID prior to paying quarterly interest payments.

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, 2018 and 2017 is as follows:


For Year Ending	Balance Outstanding		Interest Paid Current Year		Cumulative Interest Paid		Accrued Interest

2018	$	150,000	$	9,000	$	144,000	$	2,250
2017	$	150,000	$	9,000	$	135,000	$	2,250

11. 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, 2018 and 2017, respectively, securities with a fair value of $1,625,915 and $2,385,635 were on loan under securities lending agreements. At December 31, 2017, the collateral the Company received from securities lending activities was in the form of cash and on open terms. This cash collateral is reinvested and is not available for general corporate purposes. The reinvested cash collateral has a fair value of $1,670,537 and $2,460,919 at December 31, 2018 and 2017, respectively.

The contractual maturities of the securities lending collateral positions are as follows:


		Fair Value
	2018		2017
Open	$	1,669,762	$	2,461,167
30 days or less		–		–
31 to 60 days		–		–
61 to 90 days		–		–
Greater than 90 days		–		–
Total		1,669,762		2,461,167

Securities received		–		–
Total collateral received	$	1,669,762	$	2,461,167

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.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The maturity dates of the reinvested securities lending collateral are as follows:

2018

2017

Amortized
Cost

Fair Value

Amortized
Cost

Fair Value

Open

245,460

264,039

30 days or less

418,414

913,484

31 to 60 days

300,130

376,158

61 to 90 days

173,187

489,542

91 to 120 days

301,294

191,141

121 to 180 days

232,052

226,555

181 to 365 days

–

1 to 2 years

–

2 to 3 years

–

Greater than 3 years

–

Total

1,670,537

2,460,919

Securities received

–

Total collateral reinvested

1,670,537

2,460,919

For securities lending, the Company’s sources of cash that it uses to return the cash collateral are dependent upon the liquidity of the current market conditions. Under current conditions, the Company has securities with a par value of $1,659,224 (fair value of $1,670,537) that are currently tradable securities that could be sold and used to pay for the $1,669,762 in collateral calls that could come due under a worst-case scenario.

12. Retirement and Compensation Plans

Defined Contribution Plans

The Company’s employees participate in a contributory defined contribution plan sponsored by Transamerica Corporation (TA Corp) which is qualified under Section 401(k) of the Internal Revenue Code. Generally, employees of the Company who customarily work at least 20 hours per week and meet the other eligibility requirements are participants of the plan. Participants may elect to contribute up to 100% of eligible earnings, subject to government or other plan restrictions for certain key employees. The Company will match an amount up to three percent of the participant’s eligible earnings. 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, as amended (ERISA). Benefits expense of $12,769, $13,133 and $15,745 was allocated to the Company for the years ended December 31, 2018, 2017 and 2016 respectively.

Defined Benefit Plans

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

are participants of the plan. The Company has no legal obligation for the plan. The benefits are based on years of service and the employee’s eligible compensation. The plan provides benefits based on a traditional final average formula or a cash balance formula. The plan is subject to the reporting and disclosure requirements of the ERISA.

TA Corp sponsors supplemental retirement plans to provide the Company’s senior management with benefits in excess of normal pension benefits. The Company has no legal obligation for the plan. The plans are noncontributory and benefits are based on years of service and the employee’s eligible compensation. The plan provides benefits based on a traditional final average formula or cash balance formula. The plans are unfunded and nonqualified under the Internal Revenue Service Code.

The Company recognizes pension expense equal to its allocation from TA Corp. The pension expense related to both the defined pension plan and the supplemental retirement plans is allocated among the participating companies based on International Accounting Standards 19 (IAS 19), Accounting for Employee Benefits, and based upon actuarial participant benefit calculations, which is within the guidelines of SSAP 102, Pensions. Pension expenses were $23,481, $30,676 and $35,812 for the years ended December 31, 2018, 2017 and 2016, respectively.

In addition to pension benefits, TA Corp sponsors unfunded plans that provide health care and life insurance benefits to retired Company employees meeting certain eligibility requirements. The Company has no legal obligation for the 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 which is within the guidelines of SSAP 92, Postretirement Benefits Other Than Pensions. The Company’s allocation of post retirement expenses was $5,027, $7,332 and $6,527 for the years ended December 31, 2018, 2017 and 2016, respectively.

Other Plans

TA Corp has established deferred compensation plans for certain key employees of the Company. The Company’s allocation of expense for these plans for each of the years ended December 31, 2018, 2017 and 2016 was insignificant.

13. Related Party Transactions

The Company shares certain officers, employees and general expenses with affiliated companies.

The Company is party to a shared services and cost sharing agreement among and between the Transamerica companies, under which various affiliated companies may perform specified administrative functions in connection with the operation of the Company, in consideration of reimbursement of actual costs of services rendered. The Company is also party to a service agreement with 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

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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 amount received by the Company as a result of being a party to these agreements was $892,554, $1,115,739 and $1,195,341 during 2018, 2017 and 2016, respectively. The amount paid as a result of being a party to these agreements was $580,203, $811,607 and $803,847 during 2018, 2017 and 2016, 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 $136,995, $148,943 and $136,494 for these services during 2018, 2017 and 2016, respectively.

Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $40,843, $37,029 and $57,231 for the years ended December 31, 2018, 2017 and 2016, respectively.

Receivables from and payables to affiliates bear interest at the thirty-day commercial paper rate. During 2018, 2017 and 2016, the Company received (paid) net interest of ($365), ($834) and $122 from (to) affiliates, respectively. At December 31, 2018 and 2017, respectively, the Company reported net payables from affiliates of $36,791 and $489. Terms of settlement require that these amounts are settled within 60 days.

At December 31, 2018, the Company had short-term intercompany notes receivable of $261,000 as follows. In accordance with SSAP No. 25, Affiliates and Other Related Parties, these notes are reported as short-term investments.

Receivable from

Amount

Due By

Interest Rate

TA Corp

220,500

December 13, 2019

2.31

TA Corp

40,500

December 21, 2019

2.31

At December 31, 2017, the Company had short-term intercompany notes receivable of $168,300.

Receivable from

Amount

Due By

Interest Rate

TA Corp

53,600

December 21, 2018

1.18

TA Corp

114,700

December 29, 2018

1.18

In prior years, the Company purchased life insurance policies covering the lives of certain employees of the Company from an affiliate, TPLIC. At December 31, 2018 and 2017, the cash surrender value of these policies was $179,004 and $174,952, respectively, and is included in Other assets on the balance sheet. In addition, the Company also issued life insurance policies to an affiliate, TPLIC, covering the lives of certain employees of that affiliate. Aggregate reserves for policies and contracts related to these policies are $167,126 and $166,473 at December 31, 2018 and 2017, respectively, and is included in Aggregate reserves for policies and contracts on the balance sheet.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company utilizes the look-through approach in valuing its investment in the following entities.


Real Estate Alternatives Portfolio 2, LLC	$	25,943
Real Estate Alternatives Portfolio 3, LLC	$	29,149
Real Estate Alternatives Portfolio 4 HR, LLC	$	88,280
Aegon Multi-Family Equity Fund, LLC	$	54,942
Natural Resources Alternatives Portfolio I, LLC	$	90,600
Zero Beta Fund, LLC	$	257,831

These entity’s financial statements are not audited and the Company has limited the value of its investment in these entities to the value contained in the audited financial statements of the underlying LP/LLC investments, including adjustments required by SSAP No. 97, entities and/or non-SCA SSAP No. 48, Joint Ventures, Partnerships and Limited Liability Companies entities owned by these entities. All liabilities, commitments, contingencies, guarantees or obligations of these entities which are required to be recorded as liabilities, commitments, contingencies, guarantees or obligations under applicable accounting guidance, are reflected in the Company’s determination of the carrying value of the investment in these entities.

Effective December 31, 2017, the Company received a liquidating distribution from IWA, a wholly owned limited liability company reported using the equity method outlined in SSAP No. 48, fully redeeming the Company’s membership interest therein. The Company received $176,999 cash, $57,050 directly held real estate, $17,602 real estate LLC membership, $4,328 intercompany receivable, and $2,684 tax refund receivable in redemption of the Company’s equity method basis in IWA. The transaction resulted in a pre-tax realized loss of $39,953 reported on the Statement of Operations which is offset by a pre-tax $40,097 unrealized loss reduction that is reported on the Statement of Changes in Capital and Surplus.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The following table shows the disclosures for all SCA investments, except 8bi entities, and balance sheet value (admitted and nonadmitted) as of December 31, 2018 and 2017:

SCA Entity

Percentage of
SCA
Ownership

Gross
Amount

Admitted
Amount

Nonadmitted
Amount

SSAP No. 97 8a Entities

None

–

Total SSAP No. 97 8a Entities

XXX

–

SSAP No. 97 8b(ii) Entities

None

–

Total SSAP No. 97 8b(ii) Entities

XXX

–

SSAP No. 97 8b(iii) Entities

REAL ESTATE ALTERN PORT 3A INC

22,419

–

GARNET ASSURANCE CORP

100

–

LIFE INVESTORS ALLIANCE LLC

100

–

AEGON FINANCIAL SERVICES GROUP

100

–

GARNET ASSURANCE CORP III

100

–

Total SSAP No. 97 8b(iii) Entities

XXX

22,419

–

SSAP No. 97 8b(iv) Entities

TRANSAMERICA LIFE (BERMUDA) LTD

1,000,646

–

Total SSAP No. 97 8b(iv) Entities

XXX

1,000,646

–

Total SSAP No. 97 8b Entities (except 8bi entities)

XXX

1,023,065

–

Aggregate Total

XXX

1,023,065

–

SCA Entity

Percentage of
SCA
Ownership

Gross
Amount

Admitted
Amount

Nonadmitted
Amount

SSAP No. 97 8a Entities

None

–

Total SSAP No. 97 8a Entities

XXX

–

SSAP No. 97 8b(ii) Entities

None

–

Total SSAP No. 97 8b(ii) Entities

XXX

–

SSAP No. 97 8b(iii) Entities

REAL ESTATE ALTERN PORT 3A INC

16,471

–

GARNET ASSURANCE CORP

–

LIFE INVESTORS ALLIANCE LLC

–

ASIA INVESTMENT HOLDING LTD

100

–

AEGON FINANCIAL SERVICES GROUP

100

–

GARNET ASSURANCE CORP III

100

–

Total SSAP No. 97 8b(iii) Entities

XXX

16,471

–

SSAP No. 97 8b(iv) Entities

TRANSAMERICA LIFE (BERMUDA) LTD

1,101,266

–

Total SSAP No. 97 8b(iv) Entities

XXX

1,101,266

–

Total SSAP No. 97 8b Entities (except 8bi entities)

XXX

1,117,737

–

Aggregate Total

XXX

1,117,737

–

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The following table shows the NAIC responses for the SCA filings (except 8bi entities):

December 31, 2018

SCA Entity

Type of
NAIC
Filing*

Date of
Filing to
the NAIC

NAIC
Valuation
Amount

NAIC
Response
Received
Y/N

NAIC
Disallowed
Entities
Valuation
Method,
Submission
Required
Y/N

Code**

SSAP No. 97 8a Entities

None

–

Total SSAP No. 97 8a Entities

–

SSAP No. 97 8b(ii) Entities

None

–

Total SSAP No. 97 8b(ii) Entities

–

SSAP No. 97 8b(iii) Entities

REAL ESTATE ALTERN PORT 3A INC

12/21/2018

16,471

GARNET ASSURANCE CORP

–

LIFE INVESTORS ALLIANCE LLC

–

AEGON FINANCIAL SERVICES GROUP

–

GARNET ASSURANCE CORP III

–

Total SSAP No. 97 8b(iii) Entities

–

16,471

–

SSAP No. 97 8b(iv) Entities

TRANSAMERICA LIFE (BERMUDA) LTD

10/8/2018

815,587

Total SSAP No. 97 8b(iv) Entities

–

815,587

–

Total SSAP No. 97 8b Entities (except 8bi entities)

–

832,058

–

Aggregate Total

–

832,058

–

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

December 31, 2017

SCA Entity

Type of
NAIC
Filing*

Date of
Filing to
the NAIC

NAIC
Valuation
Amount

NAIC
Response
Received
Y/N

NAIC
Disallowed
Entities
Valuation
Method,
Submission
Required
Y/N

Code**

SSAP No. 97 8a Entities

None

–

Total SSAP No. 97 8a Entities

–

SSAP No. 97 8b(ii) Entities

None

–

Total SSAP No. 97 8b(ii) Entities

–

SSAP No. 97 8b(iii) Entities

REAL ESTATE ALTERN PORT 3A INC

10/31/2017

17,072

GARNET ASSURANCE CORP

9/27/2017

–

LIFE INVESTORS ALLIANCE LLC

9/27/2017

–

ASIA INVESTMENT HOLDING LTD

9/27/2017

–

AEGON FINANCIAL SERVICES GROUP

9/21/2017

–

GARNET ASSURANCE CORP III

12/28/2017

–

Total SSAP No. 97 8b(iii) Entities

–

17,072

–

SSAP No. 97 8b(iv) Entities

TRANSAMERICA LIFE (BERMUDA) LTD

12/28/2017

924,067

Total SSAP No. 97 8b(iv) Entities

–

924,067

–

Total SSAP No. 97 8b Entities (except 8bi entities)

–

941,139

–

Aggregate Total

–

941,139

–

* S1 – Sub1, S2 – Sub2 or RDF – Resubmission of Disallowed Filing

** I – Immaterial or M – Material

(1) NAIC Valuation Amount is as of the Filing Date to the NAIC

The Company reports an investment in the following insurance SCAs for which the reported statutory equity reflects a departure from NAIC SAP. Each of the insurance SCAs listed in the table below reflects an admitted asset, equal to the value of the letter of credit provided by an unaffiliated company, whereas this would not be an admitted asset recognized by SSAP No. 4, Assets and Non Admitted Assets.


LIICA Re II, Inc.		Letter of credit
Pine Falls Re (PFRe)		Letter of credit
Stonebridge Reinsurance Company (SRC)		Letter of credit
MLIC Re I, Inc. (MLIC Re)		Letter of credit

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company has three LPS with prescribed practices whereby under Iowa Administrative Code 191-99.11(3), the LPS are entitled to admit the following assets that would not be admissible under the NAIC SAP:


TLIC Riverwood Reinsurance, Inc. (TRRI)		Parental guarantee
TLIC Oakbrook Reinsurance, Inc. (TORI)		Credit linked note
TLIC Watertree Reinsurance, Inc. (TWRI)		Excess of loss reinsurance asset

The monetary effect on net income and surplus as a result of using an accounting practice that differed from NAIC SAP, the amount of the investment in the insurance SCA per reported statutory equity, and amount of the investment if the insurance SCA has completed statutory financial statements in accordance with the NAIC SAP. The SCAs are valued in the Company’s financial statements at zero in accordance with SSAP No. 97.

Monetary Effect on

NAIC SAP

Amount of Investment

SCA Entity

(Investments in Insurance SCA Entities)

Net
Income
Increase
(Decrease)

Surplus
Increase
(Decrease)

Per
Reported
Statutory
Equity

If the Insurance
SCA Had
Completed
Statutory
Financial
Statements*

LIICA Re II**

–

(210,000

)

–

Pine Falls Re**

–

(1,200,000)

–

Stonebridge Reinsurance Company**

–

(753,321

)

–

MLIC Re**

–

(830,000

)

–

TLIC Riverwood Reinsurance, Inc.

–

(2,163,084

)

1,049,158

–

TLIC Oakbrook Reinsurance, Inc.

–

(1,136,283

)

128,495

–

TLIC Watertree Reinsurance, Inc.

–

(745,523

)

493,278

–

* Per AP&P Manual (without permitted or prescribed practices)

** The SCA is valued at zero in the Company’s financial statements

The above SCA entities had not been permitted to include a letter of credit as an admitted asset recognized in the financial statements, the risk- based capital would have been below the mandatory control level. If the RBC for each of the insurance SCA entities listed above would have triggered a regulatory event had they not used a prescribed practice.

Information regarding the Company’s affiliated reinsurance transactions is available in Note 8. Reinsurance.

14. Commitments and Contingencies

At December 31, 2018 and 2017, the Company has mortgage loan commitments of $238,370 and $91,038, respectively.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company has contingent commitments for $718,870 and $701,790 as of December 31, 2018 and 2017, respectively, to provide additional funding for various joint ventures, partnerships, and limited liability companies, which includes LIHTC commitments of $55,107 and $40,605, respectively.

The Company leases office buildings and equipment under various non-cancelable operating lease agreements. Rental expense for the years 2018 and 2017 was $11,086 and $14,987, respectively.

At December 31, 2018 and 2017, the Company has private placement commitments outstanding of $78,516 and $46,679, respectively.

The Company sold $1,658 and $0 of “to-be-announced” (TBA) securities as of December 31, 2018 and 2017, respectively. Due to different counterparties, the receivable related to these TBAs was not reclassed.

The Company may pledge cash as collateral for derivative transactions. When cash is pledged as collateral, it is derecognized and a receivable is recorded to reflect the eventual return of that cash by the counterparty. In addition, the amount of cash collateral pledged by the Company as of December 31, 2018 and 2017, respectively, was $0 and $15,151.

At December 31, 2018 and 2017, securities in the amount of $227,624 and $45,201, respectively, were posted to the Company as collateral from derivative counterparties. The securities were not included on the Company’s balance sheet as the Company does not have the ability to sell or repledge the collateral.

The Company has provided back-stop guarantees for the performance of non-insurance affiliates or subsidiaries that are involved in the guaranteed sale of investments in low-income housing tax credit partnerships. The nature of the obligation is to provide third party investors with a minimum guaranteed annual and cumulative return on their contributed capital which is based on tax credits and tax losses generated from the low income housing tax credit partnerships. Guarantee payments arise if low income housing tax credit partnerships experience unexpected significant decreases in tax credits and tax losses or there are compliance issues with the partnerships. A significant portion of the remaining term of the guarantees is between 13-18 years. 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. No payments are required as of December 31, 2018. The current assessment of risk of making payments under these guarantees is remote.

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, Transamerica Life Bermuda LTD (TLB) (Singapore Branch), and continue to meet, pay and settle all present and future obligations of TLB. As of December 31, 2018, 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

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

promptly meet its obligations and liabilities. If at any time the value of TLB’s assets do not exceed its liabilities by the prevailing acceptable level of solvency, the Company will increase the paid up share capital of TLB or provide financial assistance to TLB to maintain the acceptable level of solvency. An acceptable level of solvency is net assets at one hundred and fifty percent of the required margin of solvency as stipulated under the Insurance Companies (Margin of Solvency) Regulation. As of December 31, 2018, 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 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 Standard & Poor’s the same as without the support from this agreement, or the entire book of TLB business is transferred provided that it is transferred to an entity with a rating from S&P that is the same as or better than TLIC’s then current rating or AA, whichever is lower. As of December 31, 2018, 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, 2018 and 2017, TLB holds related statutory-basis policy and claim reserves of $2,212,527 and $1,918,249, 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, 2018, there is no payment or performance risk because TLB is not insolvent as of this date.

The Company has provided a guarantee to TLB’s (Hong Kong 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, 2018 and 2017, TLB policies covered by this guarantee would have resulted in US statutory policy and claim reserves of $3,458,012 and $3,168,807, respectively, which would represent a fair measure of the maximum potential amount of future payments the Company under this guarantee based on the US statutory reserve requirements. TLB is a subsidiary of the Company and TLB has invested assets supporting these policies which mitigates this risk. 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, 2018, there is no payment or performance risk because TLB is not insolvent as of this date.

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, 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 is a party to a fee agreement with TLB whereby the Company continues to provide the guarantees with respect to TLB described in the paragraphs above. The Company received $587 and $545 under this agreement in 2018 and 2017, respectively.

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 direct statutory reserve established at December 31, 2018 and 2017 for the total payout block is $3,235,571 and $3,286,580, 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, 2018 and 2017:


	December 31
	2018		2017
Aggregate maximum potential of future payments of all guarantees (undiscounted)	$	5,670,570	$	5,087,084

Current liability recognized in financial statements:
Noncontingent liabilities		–		–

Contingent liabilities		–		–

Ultimate financial statement impact if action required:
Incurred claims		5,670,539		5,087,056
Other		31		28
Total impact if action required	$	5,670,570	$	5,087,084

The Company is a member of the FHLB of Des Moines. Through its membership, the Company has conducted business activity (borrowings) with the FHLB. It is part of the Company’s strategy to utilize these funds for asset and liability management and spread lending purposes. The Company has determined the actual/estimated long-term maximum borrowing capacity as $3,274,093. The Company calculated this amount in accordance with the terms and conditions of agreement with FHLB of Des Moines.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2018 and 2017, the Company purchased/owned the following FHLB stock as part of the agreement:


	Year Ended December 31
	2018		2017
Membership Stock:
Class A	$	–	$	–
Class B		10,000		10,000
Activity Stock		123,400		165,800
Excess Stock		–		–
Total	$	133,400	$	175,800

At December 31, 2018 and 2017, Membership Stock (Class A and B) Eligible for Redemption and the anticipated timeframe for redemption was as follows:

Less Than
6 Months

6 Months to
Less Than
1 Year

1 to Less
Than 3
Years

3 to 5
Years

December 31, 2018

Membership Stock

Class A

–

Class B

–

10,000

Total

–

10,000

Less Than
6 Months

6 Months to
Less Than
1 Year

1 to Less
Than 3
Years

3 to 5
Years

Decemeber 31, 2017

Membership Stock

Class A

–

Class B

–

10,000

Total

–

10,000

At December 31, 2018 and 2017, the amount of collateral pledged and the maximum amount pledged to the FHLB was as follows:


	Fair Value		Carry Value
December 31, 2018
Total Collateral Pledged	$	4,379,240	$	4,405,503
Maximum Collateral Pledged		5,176,835		5,131,250

	Fair Value		Carry Value
Decemeber 31, 2017
Total Collateral Pledged	$	5,262,087	$	4,999,339
Maximum Collateral Pledged		5,534,849		5,317,412

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

At December 31, 2018 and 2017, the borrowings from the FHLB were as follows:

December 31, 2018

December 31, 2017

General
Account

Funding
Agreements
Reserves
Established

General
Account

Funding
Agreements
Reserves
Established

Debt¹

2,820,000

–

3,820,000

–

Funding agreements²

265,000

266,742

325,000

326,380

Other

–

Total

3,085,000

266,742

4,145,000

326,380

¹ The maximum amount of borrowing during 2018 was $2,820,000

² The maximum amount of borrowing during 2018 was $265,000

As of December 31, 2018, the weighted average interest rate on FHLB advances was 2.602% with a weighted average term of 4.3 years. As of December 31, 2017, the weighted average interest rate on FHLB advances was 1.544% with a weighted average term of 5.2 years.

At December 31, 2018 the prepayment penalties information is as follows:


		Does the Company have prepayment obligations under the following arrangements (yes/no)?
Debt		NO
Funding Agreements		NO
Other		N/A

The Company has issued synthetic GIC contracts to benefit plan sponsors totaling $1,905,244 and $2,762,795 as of December 31, 2018 and 2017, 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. Funding requirements to date have been minimal and management does not anticipate any future material funding requirements that would have a material impact on reported financial results. In compliance with statutory guidelines, no reserves were recorded at December 31, 2018.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The Company is party to legal proceedings involving a variety of issues incidental to its business, including class action lawsuits. Lawsuits may be brought in nearly any federal or state court in the United States or in an arbitral forum. In addition, there continues to be significant federal and state regulatory activity relating to financial services companies. The Company’s legal proceedings are subject to many variables, and given its complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and punitive damages, and injunctive relief, it is management’s opinion that damages arising from such demands will not be material to the Company’s financial position.

The Company has been named in class action and individual lawsuits relating to increases in monthly deduction rates (‘‘MDR’’) on universal life products. In one federal class action filed in the Central District of California, the parties agreed to settle the case and a $210,100 provision was established in 2018, which included $15,000 for additional costs for attorney fees, class notice and administration. In January 2019, the court approved the settlement. Over 99% of affected policyholders participated in the settlement. While less than 1% of policyholders opted out, they represent approximately 43% of the value of the settlement fund. The Company continues to hold a provision for these policyholders. The provision for this settlement is included in other liabilities in the balance sheet and general expenses within the statement of operations.

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 $7,864 and $10,075 and an offsetting premium tax benefit $6,173 and $7,345 at December 31, 2018 and 2017, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund (benefit) expense was $400, $216 and $6,142, for the years ended December 31, 2018, 2017 and 2016, respectively.

15. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities

The Company has recorded liabilities of $95,515 and $93,497 for municipal repurchase agreements as of December 31, 2018 and 2017, respectively. The repurchase agreements are primarily collateralized by investment-grade corporate bonds with book adjusted carry values of $205,405 and $116,023, respectively, and fair values of $217,575 and $125,733, respectively, as of December 31, 2018 and 2017. These securities have maturity dates that range from 2019 to 2097.

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.

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

The results of these projections on time horizons ranging from 16 months to 24 months are the basis for the near-term liquidity planning. This liquidity model excludes new business (non applicable for the spread business), renewals and other sources of cash and assumes all liabilities are paid off on the earliest dates required. Interest rate risk is carefully managed, in part through rigorously defined and monitored derivatives programs.

The Company enters into dollar repurchase agreements in which securities are delivered to the counterparty once adequate collateral has been received. At December 31, 2018 and 2017, the Company had dollar repurchase agreements outstanding in the amount of $361,063 and $330,081, respectively. The Company had an outstanding liability for borrowed money in the amount $205,345 and $330,318, which included accrued interest of $1,092 and $885, at December 31, 2018 and 2017, respectively due to participation in dollar repurchase agreements.

The contractual maturities of the dollar repurchase agreement positions are as follows:


	Fair Value
	2018		2017

Open	$	204,253	$	329,434
30 days or less		–		–
31 to 60 days		–		–
61 to 90 days		–		–
Greater than 90 days		–		–

Total		204,253		329,434

Securities received		–		–

Total collateral received	$	204,253	$	329,434

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 2018 and reacquired within 30 days of the sale date are:


	Number of Transactions		Book Value of Securities Sold		Cost of Securities Repurchased		Gains (Losses)

Bonds:
NAIC 5		1	$	1,448	$	1,459	$	31
Common stocks:
Common stocks		4	$	15	$	21	$	10

16. Subsequent Events

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share amounts)

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 identified a Type II subsequent event for the year ended December 31, 2018. The Company ceded businesses to a subsidiary of Scottish Re Group. In January 2018, Scottish Re Group announced a sale and restructuring plan and commenced Chapter 11 (reorganization) procedures for some of its subsidiaries. In December 2018, the Delaware Department of Insurance began also oversight procedures of the Scottish Re Group subsidiary (SRUS) with whom TLIC is a counterparty for some of its reinsurance activities. On March 1, 2019, the Delaware Department of Insurance requested SRUS to be placed in rehabilitation. The Company’s management closely monitors the current developments but is not yet able to assess whether its outstanding reserves and receivables will be recoverable. At December 31, 2018, the Company’s reserves ceded to Scottish Re Group were $108,320.

17. Subsequent Events (Unaudited)

Additional subsequent events have been evaluated for disclosure through July 1, 2019.

As discussed in Note 16 to the audited financial statements, the company has ceded certain reinsurance to a SRUS. On May 16, 2019, the Iowa Insurance Division suspended the certificate of authority for SRUS. This suspension may result in the loss of reinsurance credit related to SRUS and thus, the company may experience an increase in net reserves. See Note 16 Subsequent Events for additional details, including reserve credits related to SRUS at December 31, 2018.

With the approval of the Iowa Insurance Division, the Company paid a $250,000 return of capital to its parent, CGC, and also repaid $150,000 of surplus note principal to TA Corp on June 21, 2019.

Effective July 1, 2019, the Company completed a merger with Transamerica Advisors Life Insurance Company (TALIC), an Arkansas domiciled affiliate, with the Company emerging as the surviving entity per the Plan of Merger which was approved by the Iowa Insurance Division on April 29, 2019 and the Arkansas Insurance Department commissioner on May 31, 2019.

TALIC statutory balances at December 31, 2018 were as follows:


Total assets	$	7,204,454
Total liabilities	$	6,705,315
Net income (loss)	($	70,314	)
Total capital and surplus	$	499,139

Transamerica Life Insurance Company

Appendix A – Listing of Affiliated Companies


Transamerica Corporation
EIN: 42-1484983
AFFILIATIONS SCHEDULE
YEAR ENDED DECEMBER 31, 2018

Attachment to Note 9
Entity Name	FEIN
Transamerica Corporation		42-1484983

Aegon Asset Management Services Inc		39-1884868

Aegon Direct Marketing Services Inc		42-1470697

Aegon Financial Services Group Inc		41-1479568

Aegon Institutional Markets Inc		61-1085329

Aegon Management Company		35-1113520

Aegon USA Real Estate Services Inc		61-1098396

Aegon USA Realty Advisors of CA FKA Pensaprima Inc		20-5023693

AFSG Securities Corporation		23-2421076

AUSA Properties Inc		27-1275705

Commonwealth General Corporation		51-0108922

Creditor Resources Inc		42-1079584

CRI Solutions Inc		52-1363611

Financial Planning Services Inc		23-2130174

Firebird Reinsurance Corporation		47-3331975

Garnet Assurance Corporation		11-3674132

Garnet Assurance Corporation II		14-1893533

Garnet Assurance Corporation III		01-0947856

Intersecurities Ins Agency		42-1517005

LIICA RE II		20-5927773

Massachusetts Fidelity Trust		42-0947998

MLIC RE I Inc		01-0930908

Money Services Inc		42-1079580

Monumental General Administrators Inc		52-1243288

Pearl Holdings Inc I		20-1063558

Pearl Holdings Inc II		20-1063571

Pine Falls Re Inc		26-1552330

Real Estate Alternatives Portfolio 3A Inc		20-1627078

River Ridge Insurance Company		20-0877184

Short Hills Management		42-1338496

Southwest Equity General Company		86-0455577

Stonebridge Benefit Services Inc		75-2548428

Transamerica Life Insurance Company

Appendix A – Listing of Affiliated Companies (continued)


Transamerica Corporation
EIN: 42-1484983
AFFILIATIONS SCHEDULE
YEAR ENDED DECEMBER 31, 2018

Attachment to Note 9
Entity Name	FEIN

Stonebridge Reinsurance Company		61-1497252

TCF Asset Management Corp		84-0642550

TCFC Air Holdings Inc		32-0092333

TCFC Asset Holdings Inc		32-0092334

TLIC Oakbrook Reinsurance Inc.		47-1026613

TLIC Riverwood Reinsurance Inc		45-3193055

TLIC Watertree Reinsurance, Inc.		81-3715574

Transamerica Advisors Life Insurance Company (FKA MLLIC)		91-1325756

Transamerica Accounts Holding Corp		36-4162154

Transamerica Affinity Services Inc		42-1523438

Transamerica Affordable Housing Inc		94-3252196

Transamerica Agency Network Inc (FKA: Life Inv Fin Group)		61-1513662

Transamerica Asset Management (fka Transamerica Fund Advisors)		59-3403585

Transamerica Capital Inc		95-3141953

Transamerica Casualty Insurance Company		31-4423946

Transamerica Commercial Finance Corp I		94-3054228

Transamerica Consumer Finance Holding Company		95-4631538

Transamerica Corporation (OREGON)		98-6021219

Transamerica Distribution Finance Overseas Inc		36-4254366

Transamerica Finance Corporation		95-1077235

Transamerica Financial Advisors FKA InterSecurities		59-2476008

Transamerica Financial Life Insurance Company		36-6071399

Transamerica Fund Services Inc		59-3403587

Transamerica Home Loan		95-4390993

Transamerica International Re (Bermuda) Ltd		98-0199561

Transamerica Investors Securities Corp		13-3696753

Transamerica Leasing Holdings Inc		13-3452993

Transamerica Life Insurance Company		39-0989781

Transamerica Pacific Insurance Co Ltd		94-3304740

Transamerica Premier Life Insurance Company		52-0419790

Transamerica Resources Inc (FKA: Nat Assoc Mgmt)		52-1525601

Transamerica Small Business Capital Inc		36-4251204

Transamerica Life Insurance Company

Appendix A – Listing of Affiliated Companies (continued)


Transamerica Corporation
EIN: 42-1484983
AFFILIATIONS SCHEDULE
YEAR ENDED DECEMBER 31, 2018

Attachment to Note 9
Entity Name	FEIN
Transamerica Stable Value Solutions Inc		27-0648897
Transamerica Vendor Financial Services Corporation		36-4134790
United Financial Services Inc		52-1263786
WFG China Holdings Inc		20-2541057
World Fin Group Ins Agency of Massachusetts Inc		04-3182849
World Financial Group Inc		42-1518386
World Financial Group Ins Agency of Hawaii Inc		99-0277127
World Financial Group Insurance Agency of WY Inc		42-1519076
World Financial Group Insurance Agency		95-3809372
Zahorik Company Inc		95-2775959

Zero Beta Fund LLC		26-1298094

Statutory-Basis Financial

Statement Schedules

100

Transamerica Life Insurance Company

Summary of Investments – Other Than

Investments in Related Parties

(Dollars in Thousands)

December 31, 2018

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

6,331,854

6,598,931

6,473,506

States, municipalities and political subdivisions

775,531

798,840

775,531

Foreign governments

362,823

352,919

362,847

Hybrid securities

382,258

379,539

382,045

All other corporate bonds

18,495,323

19,020,347

18,473,880

Preferred stocks

98,907

91,213

97,382

Total fixed maturities

26,446,696

27,241,789

26,565,191

Equity securities

Common stocks:

Industrial, miscellaneous and all other

154,552

171,979

Total equity securities

154,552

171,979

Mortgage loans on real estate

4,574,654

Real estate

114,446

Policy loans

551,658

Other long-term investments

955,194

Receivable for securities

123,959

Securities lending

1,670,537

Cash, cash equivalents and short-term investments

1,955,703

Total investments

36,547,399

36,683,321

(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 $36,959 are held at fair value rather than amortized cost due to having an NAIC 6 rating. Two preferred stock securities are held at fair value of $4,598 due to having an NAIC 6 rating.

101

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, 2018
Individual life	$	10,400,565	$	–	$	343,340	$	104,339		$	693,537		$	1,425,541		$	888,908
Individual health		86,822		92,364		30,578		106,230			25,370			65,813			193,680
Group life and health		1,512,345		21,075		81,403		638,939			95,911			306,199			276,705
Annuity		13,793,355		–		30,315		10,572,727			654,092			16,123,471			(2,756,710	)
Other		–		–		–		–			141,741			–			–

	$	25,793,087	$	113,439	$	485,636	$	11,422,235		$	1,610,651		$	17,921,024		$	(1,397,417	)

Year ended December 31, 2017
Individual life	$	9,987,824	$	–	$	250,100	$	(7,812,143	)	$	(1,056,944	)	$	(1,870,315	)	$	603,366
Individual health		100,420		91,784		27,176		(1,489,124	)		1,344,780			(4,084,846	)		(885,516	)
Group life and health		1,528,445		23,229		100,510		508,023			238,217			(36,386	)		186,023
Annuity		14,017,983		–		22,133		5,662,618			1,468,343			9,211,736			(2,084,576	)
Other		–		–		–		–			438,652			–			–

	$	25,634,672	$	115,013	$	399,919	$	(3,130,626	)	$	2,433,048		$	3,220,189		$	(2,180,703	)

Year ended December 31, 2016
Individual life	$	13,570,924	$	–	$	241,127		964,932		$	768,583		$	1,682,114		$	850,556
Individual health		4,104,887		96,408		177,690		128,097			288,730			350,311			164,250
Group life and health		1,920,903		26,223		111,533		646,226			126,113			395,670			313,984
Annuity		18,660,981		–		24,395		12,339,288			1,108,862			12,847,222			1,559,407
Other		–		–		–		–			152,629			–			–

	$	38,257,695	$	122,631	$	554,745	$	14,078,543		$	2,444,917		$	15,275,317		$	2,888,197

*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.

102

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, 2018
Life insurance in force	$	972,796,627	$	831,130,720		$	–	$	141,665,907			0	%


Premiums:
Individual life	$	2,453,331	$	3,644,497		$	1,295,506	$	104,340			1242	%
Individual health		532,130		429,165			3,264		106,230			3	%
Group life and health		753,427		131,816			17,328		638,939			3	%
Annuity		10,692,163		197,320			77,884		10,572,727			1	%
	$	14,431,051	$	4,402,798		$	1,393,982	$	11,422,236			12	%


Year ended December 31, 2017
Life insurance in force	$	533,085,617	$	887,695,994		$	484,569,310	$	129,958,933			373	%


Premiums:
Individual life	$	2,443,494	$	11,836,066		$	1,580,429	$	(7,812,143	)		-20	%
Individual health		530,052		2,022,968			3,792		(1,489,124	)		0	%
Group life and health		802,090		321,533			27,466		508,023			5	%
Annuity		9,813,201		4,215,856			65,273		5,662,618			1	%
	$	13,588,837	$	18,396,423		$	1,676,960	$	(3,130,626	)		-54	%


Year ended December 31, 2016
Life insurance in force	$	529,122,141	$	916,395,356		$	525,650,271	$	138,377,056			380	%


Premiums:
Individual life	$	2,422,512	$	2,887,979		$	1,430,399	$	964,932			148	%
Individual health		554,332		431,437			5,202		128,097			4	%
Group life and health		820,508		203,774			29,492		646,226			5	%
Annuity		10,283,875		(1,994,042	)		61,372		12,339,288			0	%
	$	14,081,227	$	1,529,148		$	1,526,465	$	14,078,543			11	%

103

FINANCIAL STATEMENTS

Transamerica Life Insurance Company

Separate Account VA B

Years Ended December 31, 2018 and 2017

Transamerica Life Insurance Company

Separate Account VA B

Financial Statements

Years Ended December 31, 2018 and 2017

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			7
Notes to Financial Statements			34

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Transamerica Life Insurance Company and the Contract Owners of Separate Account VA B

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities of each of the subaccounts of Separate Account VA B indicated in the table below as of December 31, 2018, and the related statements of operations and changes in net assets for each of the periods indicated in the table below, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the subaccounts in the Separate Account VA B as of December 31, 2018, and the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.


AB Balanced Wealth Strategy Class B Shares (1)		TA Jennison Growth Service Class (1)
AB Growth and Income Class B Shares (1)		TA JPMorgan Asset Allocation - Conservative Initial Class (1)
AB Large Cap Growth Class B Shares (1)		TA JPMorgan Asset Allocation - Conservative Service Class (1)
American Funds - Asset Allocation Class 2 Shares (1)		TA JPMorgan Asset Allocation - Growth Initial Class (1)
American Funds - Bond Class 2 Shares (1)		TA JPMorgan Asset Allocation - Growth Service Class (1)
American Funds - Growth Class 2 Shares (1)		TA JPMorgan Asset Allocation - Moderate Initial Class (1)
American Funds - Growth-Income Class 2 Shares (1)		TA JPMorgan Asset Allocation - Moderate Service Class (1)
American Funds - International Class 2 Shares (1)		TA JPMorgan Asset Allocation - Moderate Growth Initial Class (1)
BlackRock Basic Value V.I. Class I Shares (1)		TA JPMorgan Asset Allocation - Moderate Growth Service Class (1)
BlackRock Global Allocation V.I. Class I Shares (1)		TA JPMorgan Core Bond Service Class (1)
BlackRock High Yield V.I. Class I Shares (1)		TA JPMorgan Enhanced Index Initial Class (1)
Fidelity® VIP Balanced Service Class 2 (1)		TA JPMorgan Enhanced Index Service Class (1)
Fidelity® VIP Contrafund® Initial Class (1)		TA JPMorgan International Moderate Growth Initial Class (1)
Fidelity® VIP Contrafund® Service Class 2 (1)		TA JPMorgan International Moderate Growth Service Class (1)
Fidelity® VIP Equity-Income Initial Class (1)		TA JPMorgan Mid Cap Value Service Class (1)
Fidelity® VIP Equity-Income Service Class 2 (1)		TA JPMorgan Tactical Allocation Service Class (1)
Fidelity® VIP Growth Initial Class (1)		TA Legg Mason Dynamic Allocation - Balanced Service Class (1)
Fidelity® VIP Growth Service Class 2 (1)		TA Legg Mason Dynamic Allocation - Growth Service Class (1)
Fidelity® VIP Growth Opportunities Service Class 2 (1)		TA Levin Large Cap Value Service Class (2)
Fidelity® VIP Mid Cap Initial Class (1)		TA Madison Balanced Allocation Service Class (1)
Fidelity® VIP Mid Cap Service Class 2 (1)		TA Madison Conservative Allocation Service Class (1)
Fidelity® VIP Value Strategies Initial Class (1)		TA Madison Diversified Income Service Class (1)
Fidelity® VIP Value Strategies Service Class 2 (1)		TA Managed Risk - Balanced ETF Service Class (1)
Franklin Founding Funds Allocation Class 4 Shares (1)		TA Managed Risk - Conservative ETF Service Class (1)
Franklin Income Class 2 Shares (1)		TA Managed Risk - Growth ETF Service Class (1)
Franklin Mutual Shares Class 2 Shares (1)		TA Market Participation Strategy Service Class (1)
Franklin Templeton Foreign Class 2 Shares (1)		TA Morgan Stanley Capital Growth Initial Class (1)
Invesco V.I. American Franchise Series II Shares (1)		TA Morgan Stanley Capital Growth Service Class (1)
Janus Henderson - Enterprise Service Shares (1)		TA Multi-Managed Balanced Initial Class (1)
Janus Henderson - Global Research Service Shares (1)		TA Multi-Managed Balanced Service Class (1)
Janus Henderson - Mid Cap Value Service Shares (1)		TA Multi-Manager Alternative Strategies Service Class (1)
MFS® New Discovery Service Class (1)		TA PIMCO Tactical - Balanced Service Class (1)
MFS® Total Return Service Class (1)		TA PIMCO Tactical - Conservative Service Class (1)
NVIT Emerging Markets Class D Shares (1)		TA PIMCO Tactical - Growth Service Class (1)
Rational Insider Buying VA (1)		TA PIMCO Total Return Initial Class (1)
Rational Trend Aggregation VA (1)		TA PIMCO Total Return Service Class (1)
State Street Total Return V.I.S. Class 3 Shares (1)		TA PineBridge Inflation Opportunities Service Class (1)
TA 60/40 Allocation Service Class (2)		TA ProFunds UltraBear Service Class (OAM) (1)
TA Aegon High Yield Bond Initial Class (1)		TA QS Investors Active Asset Allocation - Conservative Service Class (1)
TA Aegon High Yield Bond Service Class (1)		TA QS Investors Active Asset Allocation - Moderate Service Class (1)
TA Aegon U.S. Government Securities Initial Class (1)		TA QS Investors Active Asset Allocation - Moderate Growth Service Class (1)
TA Aegon U.S. Government Securities Service Class (1)		TA Small/Mid Cap Value Initial Class (1)
TA American Funds Managed Risk - Balanced Service Class (1)		TA Small/Mid Cap Value Service Class (1)
TA Barrow Hanley Dividend Focused Initial Class (1)		TA T. Rowe Price Small Cap Initial Class (1)
TA Barrow Hanley Dividend Focused Service Class (1)		TA T. Rowe Price Small Cap Service Class (1)
TA BlackRock Equity Smart Beta 100 Service Class (1)		TA Torray Concentrated Growth Initial Class (1)
TA BlackRock Global Allocation Service Class (1)		TA Torray Concentrated Growth Service Class (1)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class (1)		TA TS&W International Equity Initial Class (1)
TA BlackRock Global Allocation Managed Risk - Growth Service Class (1)		TA TS&W International Equity Service Class (1)
TA BlackRock Global Real Estate Securities Initial Class (1)		TA U.S. Equity Index Service Class (3)
TA BlackRock Global Real Estate Securities Service Class (1)		TA WMC US Growth Initial Class (1)
TA BlackRock Government Money Market Initial Class (1)		TA WMC US Growth Service Class (1)
TA BlackRock Government Money Market Service Class (1)		Vanguard® Equity Index (1)
TA BlackRock Smart Beta 40 Initial Class (1)		Vanguard® International (1)
TA BlackRock Smart Beta 40 Service Class (1)		Vanguard® Mid-Cap Index (1)
TA BlackRock Smart Beta 50 Service Class (1)		Vanguard® Real Estate Index (1)
TA BlackRock Smart Beta 75 Service Class (1)		Vanguard® Short-Term Investment Grade (1)
TA BlackRock Tactical Allocation Service Class (1)		Vanguard® Total Bond Market Index (1)
TA Greystone International Growth Initial Class (1)		Voya Global Perspectives Class S Shares (1)
TA Greystone International Growth Service Class (1)		Voya Large Cap Value Class S Shares (1)
TA International Equity Index Service Class (3)		Voya Strategic Allocation Conservative Class S Shares (1)
TA Janus Balanced Service Class (1)		Voya Strategic Allocation Moderate Class S Shares (1)
TA Janus Mid-Cap Growth Initial Class (1)		Wanger International (1)
TA Janus Mid-Cap Growth Service Class (1)		Wanger USA (1)
TA Jennison Growth Initial Class (1)

(1)	Statements of operations and changes in net assets for the years ended December 31, 2018 and 2017

(2)	Statements of operations and changes in net assets for the period May 1, 2018 (commencement of operations) through December 31, 2018

(3)	Statements of operations and changes in net assets for the year ended December 31, 2018 and the period May 1, 2017 (commencement of operations) through December 31, 2017

Basis for Opinions

These financial statements are the responsibility of the Transamerica Life Insurance Company’s management. Our responsibility is to express an opinion on the financial statements of each of the subaccounts in the Separate Account VA B based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the subaccounts in the Separate Account VA B in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of investments owned as of December 31, 2018 by correspondence with the investee mutual funds. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

April 23, 2019

We have served as the auditor of one or more of the subaccounts in Separate Account VA B since 2014.

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2018


Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
AB Balanced Wealth Strategy Class B Shares		8,537,578.420	$	96,950,576	$	85,205,033	$	5		$	85,205,038		33,611,226	$	1.321354	$	12.896548
AB Growth and Income Class B Shares		7,750,104.779		229,375,172		211,887,865		(376	)		211,887,489		72,168,849		1.364135		15.984684
AB Large Cap Growth Class B Shares		567,130.753		21,333,507		27,738,365		(152	)		27,738,213		13,361,563		1.847546		12.943866
American Funds—Asset Allocation Class 2 Shares		32,151,696.281		695,858,989		677,757,758		(127	)		677,757,631		212,831,662		1.556525		14.104327
American Funds—Bond Class 2 Shares		19,070,322.375		205,211,216		197,187,133		(119	)		197,187,014		65,952,103		1.012844		10.416853
American Funds—Growth Class 2 Shares		6,366,357.271		457,321,523		442,334,503		297			442,334,800		61,736,514		1.937225		18.673674
American Funds—Growth-Income Class 2 Shares		9,120,557.075		426,926,973		409,513,013		103			409,513,116		56,040,276		1.911534		17.441126
American Funds—International Class 2 Shares		10,613,310.223		205,890,126		186,794,260		2			186,794,262		49,456,028		1.101337		12.084199
BlackRock Basic Value V.I. Class I Shares		1,440,656.238		21,089,196		17,849,731		(95	)		17,849,636		6,813,623		1.917179		9.313214
BlackRock Global Allocation V.I. Class I Shares		685,328.821		10,933,282		10,410,145		(5	)		10,410,140		5,295,268		1.634914		9.974336
BlackRock High Yield V.I. Class I Shares		528,981.972		3,884,735		3,597,077		15,881			3,612,958		1,507,900		1.986688		9.939205
Fidelity^® VIP Balanced Service Class 2		22,292,919.305		372,441,365		364,935,089		75			364,935,164		137,704,135		1.441935		14.329332
Fidelity^® VIP Contrafund^® Initial Class		6,889.271		217,031		221,352		10			221,362		72,197		1.754685		16.167637
Fidelity^® VIP Contrafund^® Service Class 2		15,802,304.797		516,586,561		494,770,163		316			494,770,479		130,170,833		1.528523		15.861317
Fidelity^® VIP Equity-Income Initial Class		1,867.195		37,858		38,035		(2	)		38,033		23,527		1.441717		9.898796
Fidelity^® VIP Equity-Income Service Class 2		1,901,256.063		38,998,396		37,739,933		158			37,740,091		20,712,987		1.230046		9.940484
Fidelity^® VIP Growth Initial Class		277.919		15,646		17,542		19			17,561		8,174		2.075286		13.036573
Fidelity^® VIP Growth Service Class 2		544,277.826		25,527,496		33,696,240		166			33,696,406		16,810,542		1.759903		12.923702
Fidelity^® VIP Growth Opportunities Service Class 2		62,638.446		1,694,452		2,346,436		29			2,346,465		929,775		1.917924		14.544211
Fidelity^® VIP Mid Cap Initial Class		2,738.380		98,456		82,672		(2	)		82,670		38,781		1.474667		14.638890
Fidelity^® VIP Mid Cap Service Class 2		9,884,713.780		324,466,886		288,831,337		(161	)		288,831,176		74,180,131		1.414343		14.360697
Fidelity^® VIP Value Strategies Initial Class		22,978.439		330,165		255,290		(1	)		255,289		80,999		1.412581		12.826749
Fidelity^® VIP Value Strategies Service Class 2		10,436,790.513		141,874,397		116,996,422		25			116,996,447		42,681,877		0.329645		12.584945
Franklin Founding Funds Allocation Class 4 Shares		11,611,408.936		83,997,668		75,009,702		(103	)		75,009,599		40,474,209		1.262801		9.771990
Franklin Income Class 2 Shares		4,066,137.661		61,023,384		59,934,869		65			59,934,934		43,367,555		1.210037		10.227613
Franklin Mutual Shares Class 2 Shares		765,773.800		13,537,246		13,324,464		51			13,324,515		10,583,322		1.110995		9.531432
Franklin Templeton Foreign Class 2 Shares		1,830,653.541		25,450,025		23,322,526		196			23,322,722		25,135,514		0.836828		9.621912
Invesco V.I. American Franchise Series II Shares		107,723.253		4,737,910		5,914,007		59			5,914,066		3,405,149		1.627968		11.731074
Janus Henderson—Enterprise Service Shares		313,659.500		14,820,616		19,757,412		(168	)		19,757,244		8,614,115		1.456605		12.120450
Janus Henderson—Global Research Service Shares		496,360.328		14,896,052		22,907,029		(7	)		22,907,022		18,506,476		0.912196		11.369868
Janus Henderson—Mid Cap Value Service Shares		188,408.243		2,961,042		2,566,120		(16	)		2,566,104		1,170,029		1.477297		9.461027

See accompanying notes

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2018


Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
MFS^® New Discovery Service Class		2,364,734.021	$	38,242,807	$	37,622,918	$	23		$	37,622,941		15,150,161	$	1.499685	$	11.964018
MFS^® Total Return Service Class		1,897,314.113		37,651,261		40,564,576		88			40,564,664		22,981,760		1.296996		10.246623
NVIT Emerging Markets Class D Shares		1,584.567		15,968		17,509		—			17,509		1,547		10.884893		11.371277
Rational Insider Buying VA		157,495.646		2,408,883		1,888,373		28			1,888,401		1,218,337		1.397148		10.494005
Rational Trend Aggregation VA		127,649.935		1,568,560		1,370,960		18			1,370,978		1,054,500		1.170370		9.074297
State Street Total Return V.I.S. Class 3 Shares		3,469,777.844		60,603,151		48,611,588		(37	)		48,611,551		24,994,175		1.243940		12.378541
TA 60/40 Allocation Service Class		810,268.185		7,920,983		7,559,802		(1	)		7,559,801		1,506,181		0.952090		9.635446
TA Aegon High Yield Bond Initial Class		9,287,041.352		72,397,797		67,516,791		(24	)		67,516,767		31,184,824		1.160126		11.884116
TA Aegon High Yield Bond Service Class		18,619,423.538		148,070,465		137,411,346		82			137,411,428		35,239,960		1.325196		11.577174
TA Aegon U.S. Government Securities Initial Class		5,953,336.127		69,033,327		62,212,363		2,352			62,214,715		39,822,530		0.999924		10.095970
TA Aegon U.S. Government Securities Service Class		29,536,389.991		330,747,037		318,697,648		(120	)		318,697,528		104,943,141		1.024945		10.095593
TA American Funds Managed Risk—Balanced Service Class		69,114,108.898		732,095,022		724,315,861		(403	)		724,315,458		68,832,442		9.893200		10.922991
TA Barrow Hanley Dividend Focused Initial Class		13,451,698.192		227,618,107		298,896,734		192			298,896,926		131,850,813		1.161205		14.661576
TA Barrow Hanley Dividend Focused Service Class		6,261,306.951		130,898,944		139,188,854		160			139,189,014		44,974,511		1.226111		14.278097
TA BlackRock Equity Smart Beta 100 Service Class		2,907,570.324		34,205,746		34,919,920		1			34,919,921		2,916,657		10.555376		12.260897
TA BlackRock Global Allocation Service Class		81,738,903.425		1,091,357,983		1,101,023,029		(181	)		1,101,022,848		474,880,900		1.129484		11.659560
TA BlackRock Global Allocation Managed Risk—Balanced Service Class		24,059,249.374		228,437,446		216,773,837		(10	)		216,773,827		22,915,904		9.034320		10.120537
TA BlackRock Global Allocation Managed Risk—Growth Service Class		20,134,643.052		190,667,702		179,399,670		(96	)		179,399,574		19,120,004		8.975685		10.300793
TA BlackRock Global Real Estate Securities Initial Class		3,304,772.111		40,435,580		35,691,539		134			35,691,673		15,318,064		0.954018		10.288234
TA BlackRock Global Real Estate Securities Service Class		6,010,934.314		78,134,477		68,224,104		(49	)		68,224,055		27,015,414		0.933230		10.022700
TA BlackRock Government Money Market Initial Class		92,736,783.813		92,736,782		92,736,784		(218	)		92,736,566		87,727,125		0.799257		9.932598
TA BlackRock Government Money Market Service Class		339,882,127.942		339,882,126		339,882,128		(1,072	)		339,881,056		169,823,809		0.787553		9.935122
TA BlackRock Smart Beta 40 Initial Class		1,752,057.562		16,468,728		16,837,273		172			16,837,445		10,486,812		1.101537		10.280312
TA BlackRock Smart Beta 40 Service Class		29,064,261.936		262,196,044		277,273,059		(135	)		277,272,924		132,547,925		0.979989		11.241851
TA BlackRock Smart Beta 50 Service Class		12,366,853.373		137,648,660		136,530,061		5			136,530,066		12,508,832		10.198057		11.199527
TA BlackRock Smart Beta 75 Service Class		5,230,179.391		61,760,263		60,147,063		(2	)		60,147,061		5,307,037		10.375445		11.631476
TA BlackRock Tactical Allocation Service Class		84,679,576.742		1,299,644,509		1,233,781,433		491			1,233,781,924		420,090,936		1.164471		12.282920
TA Greystone International Growth Initial Class		8,811,861.949		73,319,772		70,583,014		(283	)		70,582,731		49,721,997		1.051653		10.880507
TA Greystone International Growth Service Class		10,743,233.489		91,116,136		84,441,815		(173	)		84,441,642		22,805,284		0.960080		10.602231
TA International Equity Index Service Class		1,710,532.542		18,605,510		16,267,164		6			16,267,170		1,738,557		9.152662		9.507218

See accompanying notes.

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2018


Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
TA Janus Balanced Service Class		57,361,291.980	$	781,484,753	$	840,916,540	$	20		$	840,916,560		194,748,292	$	1.295845	$	14.230449
TA Janus Mid-Cap Growth Initial Class		2,220,491.979		67,788,563		67,902,645		(187	)		67,902,458		40,505,558		1.330794		14.394008
TA Janus Mid-Cap Growth Service Class		2,950,692.453		86,357,008		86,366,768		33			86,366,801		20,363,814		1.305952		14.023390
TA Jennison Growth Initial Class		20,177,417.036		198,888,794		192,694,333		4			192,694,337		83,798,752		1.683782		20.199487
TA Jennison Growth Service Class		13,554,856.028		133,132,400		122,264,801		(49	)		122,264,752		20,725,118		2.062234		19.662782
TA JPMorgan Asset Allocation—Conservative Initial Class		14,679,022.098		154,948,700		146,643,431		47			146,643,478		87,232,931		1.182080		10.495628
TA JPMorgan Asset Allocation—Conservative Service Class		92,267,121.138		956,855,976		910,676,486		(128	)		910,676,358		372,496,615		1.130452		11.619572
TA JPMorgan Asset Allocation—Growth Initial Class		21,419,131.556		219,895,877		239,894,273		198			239,894,471		125,967,602		1.281864		10.842418
TA JPMorgan Asset Allocation—Growth Service Class		16,156,732.651		179,556,837		179,178,165		(33	)		179,178,132		62,042,687		1.127469		13.435297
TA JPMorgan Asset Allocation—Moderate Initial Class		32,138,251.851		351,539,406		359,948,421		(381	)		359,948,040		197,798,951		1.250799		10.676001
TA JPMorgan Asset Allocation—Moderate Service Class		445,522,106.884		5,091,753,901		4,918,564,060		(308	)		4,918,563,752		1,547,786,893		1.177163		12.230554
TA JPMorgan Asset Allocation—Moderate Growth Initial Class		38,724,804.509		442,869,080		449,982,228		(212	)		449,982,016		237,682,384		1.298424		10.817169
TA JPMorgan Asset Allocation—Moderate Growth Service Class		271,907,070.692		3,164,620,951		3,113,335,959		(388	)		3,113,335,571		1,233,418,891		1.163029		12.860131
TA JPMorgan Core Bond Service Class		17,341,621.503		240,016,781		232,204,312		52			232,204,364		65,985,037		1.009670		10.564413
TA JPMorgan Enhanced Index Initial Class		5,752,401.569		105,234,629		111,021,350		(22	)		111,021,328		44,289,570		1.646033		16.757698
TA JPMorgan Enhanced Index Service Class		2,974,872.489		56,646,741		57,236,547		13			57,236,560		10,181,659		1.594214		16.332702
TA JPMorgan International Moderate Growth Initial Class		8,902.691		81,621		84,487		—			84,487		68,581		1.231927		10.392485
TA JPMorgan International Moderate Growth Service Class		57,228,686.410		542,930,988		537,377,365		(311	)		537,377,054		300,953,145		0.899371		10.998467
TA JPMorgan Mid Cap Value Service Class		13,125,640.523		237,113,087		186,121,583		(46	)		186,121,537		44,054,769		1.296288		14.611786
TA JPMorgan Tactical Allocation Service Class		78,499,105.011		1,142,135,048		1,151,581,871		204			1,151,582,075		290,764,551		1.106681		11.560331
TA Legg Mason Dynamic Allocation—Balanced Service Class		84,702,289.855		996,983,560		987,628,700		(209	)		987,628,491		211,305,384		1.029068		11.478069
TA Legg Mason Dynamic Allocation—Growth Service Class		34,903,976.303		432,752,354		430,016,988		(175	)		430,016,813		99,265,335		1.133286		11.887788
TA Levin Large Cap Value Service Class		232,839.287		2,279,376		2,100,210		—			2,100,210		323,389		0.892687		9.034294
TA Madison Balanced Allocation Service Class		9,132,129.431		100,309,648		97,805,106		185			97,805,291		35,654,782		1.223284		11.838697
TA Madison Conservative Allocation Service Class		6,016,304.393		64,063,341		62,990,707		99			62,990,806		28,250,139		1.126031		11.015907
TA Madison Diversified Income Service Class		10,828,374.339		128,844,489		135,787,814		44			135,787,858		50,863,663		1.254362		12.078177
TA Managed Risk—Balanced ETF Service Class		455,566,198.980		5,245,744,129		5,298,234,894		(363	)		5,298,234,531		1,309,690,461		1.048131		11.961469
TA Managed Risk—Conservative ETF Service Class		56,067,420.841		671,242,633		671,687,702		147			671,687,849		245,869,418		1.092831		11.784266
TA Managed Risk—Growth ETF Service Class		234,478,638.235		2,378,913,259		2,384,647,751		(440	)		2,384,647,311		857,934,001		1.141394		12.523347
TA Market Participation Strategy Service Class		32,573,793.915		381,411,655		382,090,603		50			382,090,653		87,219,115		1.173517		12.631035

See accompanying notes.

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2018


Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
TA Morgan Stanley Capital Growth Initial Class		8,315,648.024	$	131,424,925	$	134,713,498	$	18		$	134,713,516		42,679,256	$	2.364581	$	14.503133
TA Morgan Stanley Capital Growth Service Class		6,925,781.663		118,647,511		108,734,772		18			108,734,790		14,619,393		2.241350		23.236711
TA Multi-Managed Balanced Initial Class		6,071,661.948		84,208,904		84,092,518		(68	)		84,092,450		35,336,427		1.552035		10.675340
TA Multi-Managed Balanced Service Class		82,199,541.250		1,113,975,304		1,113,803,784		250			1,113,804,034		213,053,682		1.301202		13.967042
TA Multi-Manager Alternative Strategies Service Class		296,607.256		2,971,535		2,811,837		20			2,811,857		294,271		9.260336		9.958207
TA PIMCO Tactical—Balanced Service Class		49,378,431.269		575,138,655		514,523,254		62			514,523,316		152,110,362		1.010459		11.924940
TA PIMCO Tactical—Conservative Service Class		22,931,241.016		260,944,706		237,796,969		(90	)		237,796,879		69,943,022		0.968877		11.772561
TA PIMCO Tactical—Growth Service Class		30,616,130.153		349,046,062		311,059,882		96			311,059,978		77,403,230		0.980005		12.195813
TA PIMCO Total Return Initial Class		14,196,722.219		161,884,652		157,867,551		170			157,867,721		100,615,759		1.025605		10.174733
TA PIMCO Total Return Service Class		65,191,551.720		748,630,085		717,758,984		331			717,759,315		331,762,980		1.056741		10.455457
TA PineBridge Inflation Opportunities Service Class		15,558,421.342		160,581,476		154,495,124		6			154,495,130		80,400,948		0.920570		9.983244
TA ProFunds UltraBear Service Class (OAM)		71,479,601.511		36,982,744		35,025,005		1			35,025,006		824,917,799		0.040444		7.672626
TA QS Investors Active Asset Allocation—Conservative Service Class		32,368,918.564		342,649,136		347,965,875		(210	)		347,965,665		141,754,097		1.036517		11.337919
TA QS Investors Active Asset Allocation—Moderate Service Class		116,828,320.037		1,325,727,041		1,333,011,132		(109	)		1,333,011,023		382,230,157		1.083393		11.564795
TA QS Investors Active Asset Allocation—Moderate Growth Service Class		48,119,302.869		536,631,370		540,379,771		342			540,380,113		195,359,095		1.081554		11.858383
TA Small/Mid Cap Value Initial Class		6,151,063.313		119,499,113		105,244,693		17			105,244,710		20,576,048		1.570471		15.228130
TA Small/Mid Cap Value Service Class		6,332,975.720		125,975,480		105,380,716		69			105,380,785		28,152,654		1.541268		14.838649
TA T. Rowe Price Small Cap Initial Class		8,279,855.344		112,143,971		114,179,205		(17	)		114,179,188		43,487,831		1.852579		17.503036
TA T. Rowe Price Small Cap Service Class		16,218,362.753		224,148,274		210,676,532		50			210,676,582		33,335,132		1.818752		17.057948
TA Torray Concentrated Growth Initial Class		6,561,655.829		115,694,316		131,167,500		196			131,167,696		37,336,127		1.734757		16.333261
TA Torray Concentrated Growth Service Class		1,561,768.032		30,604,722		31,969,392		(54	)		31,969,338		7,803,220		1.656251		15.898769
TA TS&W International Equity Initial Class		6,197,165.727		79,169,734		73,746,272		(75	)		73,746,197		42,739,151		0.956041		11.178390
TA TS&W International Equity Service Class		3,049,472.441		38,468,471		35,983,775		22			35,983,797		12,291,177		0.849936		10.890790
TA U.S. Equity Index Service Class		4,375,914.887		49,919,008		46,909,808		(3	)		46,909,805		4,460,433		10.293712		10.692325
TA WMC US Growth Initial Class		9,291,432.570		236,563,974		249,567,879		243			249,568,122		125,844,251		1.659950		18.632019
TA WMC US Growth Service Class		4,313,180.530		108,678,802		113,091,593		(176	)		113,091,417		24,232,577		1.553146		18.149148
Vanguard^® Equity Index		107,160.030		3,904,347		4,075,296		2			4,075,298		1,183,932		1.946161		17.041499
Vanguard^® International		80,358.298		1,809,270		1,859,491		(2	)		1,859,489		567,663		1.255663		13.375837
Vanguard^® Mid-Cap Index		67,065.019		1,421,764		1,356,725		(1	)		1,356,724		332,115		1.719393		15.391944
Vanguard^® Real Estate Index		39,105.767		500,992		452,454		10			452,464		143,459		1.450118		12.321583

See accompanying notes.

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2018


Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account		Net Assets		Units Outstanding		Range of Unit Values
Vanguard^® Short-Term Investment Grade		287,310.099	$	3,036,250	$	3,028,248	$	19	$	3,028,267		828,787	$	1.072249	$	10.528192
Vanguard^® Total Bond Market Index		190,495.894		2,237,905		2,198,323		—		2,198,323		359,496		1.122888		10.486855
Voya Global Perspectives Class S Shares		1,880.336		19,154		19,217		—		19,217		1,919		9.704836		10.215774
Voya Large Cap Value Class S Shares		95.514		1,040		1,008		—		1,008		95		9.997865		10.562198
Voya Strategic Allocation Conservative Class S Shares		—		—		—		—		—		—		9.967053		10.282988
Voya Strategic Allocation Moderate Class S Shares		—		—		—		—		—		—		10.091410		10.411335
Wanger International		11,829.471		324,320		262,614		1		262,615		70,863		1.220731		11.161192
Wanger USA		—		—		—		—		—		—		2.042298		16.754977

See accompanying notes.

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	AB Balanced Wealth Strategy Class B Shares Subaccount			AB Growth and Income Class B Shares Subaccount			AB Large Cap Growth Class B Shares Subaccount			American Funds - Asset Allocation Class 2 Shares Subaccount			American Funds - Bond Class 2 Shares Subaccount
Net Assets as of December 31, 2016:	$	94,083,857		$	220,284,665		$	28,324,370		$	634,039,608		$	202,687,185

Investment Income:
Reinvested Dividends		1,757,555			2,948,666			—			11,319,204			4,101,380
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,578,714			3,382,610			456,309			12,242,819			3,432,100

Net Investment Income (Loss)		178,841			(433,944	)		(456,309	)		(923,615	)		669,280
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		799,896			20,426,407			1,784,870			32,975,305			2,953,858
Realized Gain (Loss) on Investments		(785,572	)		11,724,260			2,411,493			13,942,491			(1,054,477	)

Net Realized Capital Gains (Losses) on Investments		14,324			32,150,667			4,196,363			46,917,796			1,899,381
Net Change in Unrealized Appreciation (Depreciation)		12,264,594			4,943,149			4,197,338			49,060,945			1,235,417

Net Gain (Loss) on Investment		12,278,918			37,093,816			8,393,701			95,978,741			3,134,798
Net Increase (Decrease) in Net Assets Resulting from Operations		12,457,759			36,659,872			7,937,392			95,055,126			3,804,078

Increase (Decrease) in Net Assets from Contract Transactions		(6,594,640	)		(10,466,873	)		(3,998,993	)		39,968,883			11,056,705

Total Increase (Decrease) in Net Assets		5,863,119			26,192,999			3,938,399			135,024,009			14,860,783

Net Assets as of December 31, 2017:	$	99,946,976		$	246,477,664		$	32,262,769		$	769,063,617		$	217,547,968

Investment Income:
Reinvested Dividends		1,617,506			1,809,471			—			12,210,863			4,778,399
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,559,063			3,541,890			479,664			12,768,143			3,318,369

Net Investment Income (Loss)		58,443			(1,732,419	)		(479,664	)		(557,280	)		1,460,030
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		7,238,786			27,505,699			3,650,529			32,935,152			270,918
Realized Gain (Loss) on Investments		(1,648,836	)		8,700,569			3,039,944			21,372,558			(2,781,737	)

Net Realized Capital Gains (Losses) on Investments		5,589,950			36,206,268			6,690,473			54,307,710			(2,510,819	)
Net Change in Unrealized Appreciation (Depreciation)		(13,089,972	)		(51,135,115	)		(5,657,473	)		(99,480,280	)		(4,012,883	)

Net Gain (Loss) on Investment		(7,500,022	)		(14,928,847	)		1,033,000			(45,172,570	)		(6,523,702	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(7,441,579	)		(16,661,266	)		553,336			(45,729,850	)		(5,063,672	)

Increase (Decrease) in Net Assets from Contract Transactions		(7,300,359	)		(17,928,909	)		(5,077,892	)		(45,576,136	)		(15,297,282	)

Total Increase (Decrease) in Net Assets		(14,741,938	)		(34,590,175	)		(4,524,556	)		(91,305,986	)		(20,360,954	)

Net Assets as of December 31, 2018:	$	85,205,038		$	211,887,489		$	27,738,213		$	677,757,631		$	197,187,014

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	American Funds - Growth Class 2 Shares			American Funds - Growth-Income Class 2 Shares			American Funds - International Class 2 Shares			BlackRock Basic Value V.I. Class I Shares			BlackRock Global Allocation V.I. Class I Shares
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	301,070,692		$	308,892,051		$	129,648,359		$	22,069,925		$	13,393,563

Investment Income:
Reinvested Dividends		2,012,383			5,436,965			2,154,436			327,291			169,049
Investment Expense:
Mortality and Expense Risk and Administrative Charges		6,277,435			6,028,332			2,709,539			309,812			199,371

Net Investment Income (Loss)		(4,265,052	)		(591,367	)		(555,103	)		17,479			(30,322	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		35,709,916			23,474,148			1,817,197			817,837			129,358
Realized Gain (Loss) on Investments		2,501,826			237,470			(342,853	)		386,085			397,852

Net Realized Capital Gains (Losses) on Investments		38,211,742			23,711,618			1,474,344			1,203,922			527,210
Net Change in Unrealized Appreciation (Depreciation)		50,688,858			44,406,383			39,399,899			153,944			1,037,855

Net Gain (Loss) on Investment		88,900,600			68,118,001			40,874,243			1,357,866			1,565,065
Net Increase (Decrease) in Net Assets Resulting from Operations		84,635,548			67,526,634			40,319,140			1,375,345			1,534,743

Increase (Decrease) in Net Assets from Contract Transactions		57,194,734			43,743,768			21,968,632			(1,742,925	)		(1,841,344	)

Total Increase (Decrease) in Net Assets		141,830,282			111,270,402			62,287,772			(367,580	)		(306,601	)

Net Assets as of December 31, 2017:	$	442,900,974		$	420,162,453		$	191,936,131		$	21,702,345		$	13,086,962

Investment Income:
Reinvested Dividends		2,124,919			6,343,618			3,595,577			369,139			108,826
Investment Expense:
Mortality and Expense Risk and Administrative Charges		8,094,717			7,278,774			3,342,873			308,551			181,201

Net Investment Income (Loss)		(5,969,798	)		(935,156	)		252,704			60,588			(72,375	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		48,391,290			30,234,362			9,573,365			2,139,347			425,765
Realized Gain (Loss) on Investments		4,457,417			(704,970	)		3,201,138			678,010			281,818

Net Realized Capital Gains (Losses) on Investments		52,848,707			29,529,392			12,774,503			2,817,357			707,583
Net Change in Unrealized Appreciation (Depreciation)		(56,482,165	)		(43,629,350	)		(43,962,836	)		(4,666,757	)		(1,633,656	)

Net Gain (Loss) on Investment		(3,633,458	)		(14,099,958	)		(31,188,333	)		(1,849,400	)		(926,073	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(9,603,256	)		(15,035,114	)		(30,935,629	)		(1,788,812	)		(998,448	)

Increase (Decrease) in Net Assets from Contract Transactions		9,037,082			4,385,777			25,793,760			(2,063,897	)		(1,678,374	)

Total Increase (Decrease) in Net Assets		(566,174	)		(10,649,337	)		(5,141,869	)		(3,852,709	)		(2,676,822	)

Net Assets as of December 31, 2018:	$	442,334,800		$	409,513,116		$	186,794,262		$	17,849,636		$	10,410,140

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	BlackRock High Yield V.I. Class I Shares Subaccount			Fidelity^® VIP Balanced Service Class 2 Subaccount			Fidelity^® VIP Contrafund^® Initial Class Subaccount			Fidelity^® VIP Contrafund^® Service Class 2 Subaccount			Fidelity^® VIP Equity-Income Initial Class Subaccount
Net Assets as of December 31, 2016:	$	4,838,768		$	336,960,896		$	431,681		$	476,359,703		$	61,069

Investment Income:
Reinvested Dividends		237,463			4,714,475			2,500			4,206,437			736
Investment Expense:
Mortality and Expense Risk and Administrative Charges		65,292			5,246,024			1,782			7,669,169			346

Net Investment Income (Loss)		172,171			(531,549	)		718			(3,462,732	)		390
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			9,450,198			14,141			28,503,427			1,145
Realized Gain (Loss) on Investments		31,782			5,987,743			4,384			13,938,279			3,466

Net Realized Capital Gains (Losses) on Investments		31,782			15,437,941			18,525			42,441,706			4,611
Net Change in Unrealized Appreciation (Depreciation)		61,049			34,332,976			36,326			56,527,961			393

Net Gain (Loss) on Investment		92,831			49,770,917			54,851			98,969,667			5,004
Net Increase (Decrease) in Net Assets Resulting from Operations		265,002			49,239,368			55,569			95,506,935			5,394

Increase (Decrease) in Net Assets from Contract Transactions		(691,895	)		(4,041,694	)		(229,185	)		7,300,891			(23,107	)

Total Increase (Decrease) in Net Assets		(426,893	)		45,197,674			(173,616	)		102,807,826			(17,713	)

Net Assets as of December 31, 2017:	$	4,411,875		$	382,158,570		$	258,065		$	579,167,529		$	43,356

Investment Income:
Reinvested Dividends		219,471			5,068,360			1,769			2,494,459			954
Investment Expense:
Mortality and Expense Risk and Administrative Charges		58,048			5,519,528			1,597			8,300,180			303

Net Investment Income (Loss)		161,423			(451,168	)		172			(5,805,721	)		651
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			19,614,679			21,620			51,034,223			1,934
Realized Gain (Loss) on Investments		(1,123	)		6,148,770			2,083			17,151,788			327

Net Realized Capital Gains (Losses) on Investments		(1,123	)		25,763,449			23,703			68,186,011			2,261
Net Change in Unrealized Appreciation (Depreciation)		(313,526	)		(48,459,536	)		(40,170	)		(105,225,469	)		(6,659	)

Net Gain (Loss) on Investment		(314,649	)		(22,696,087	)		(16,467	)		(37,039,458	)		(4,398	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(153,226	)		(23,147,255	)		(16,295	)		(42,845,179	)		(3,747	)

Increase (Decrease) in Net Assets from Contract Transactions		(645,691	)		5,923,849			(20,408	)		(41,551,871	)		(1,576	)

Total Increase (Decrease) in Net Assets		(798,917	)		(17,223,406	)		(36,703	)		(84,397,050	)		(5,323	)

Net Assets as of December 31, 2018:	$	3,612,958		$	364,935,164		$	221,362		$	494,770,479		$	38,033

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Fidelity^® VIP Equity- Income Service Class 2 Subaccount			Fidelity^® VIP Growth Initial Class Subaccount			Fidelity^® VIP Growth Service Class 2 Subaccount			Fidelity^® VIP Growth Opportunities Service Class 2 Subaccount			Fidelity^® VIP Mid Cap Initial Class Subaccount
Net Assets as of December 31, 2016:	$	49,230,256		$	19,555		$	34,319,380		$	1,992,681		$	52,280

Investment Income:
Reinvested Dividends		705,663			43			32,379			2,523			396
Investment Expense:
Mortality and Expense Risk and Administrative Charges		718,518			142			565,104			34,748			363

Net Investment Income (Loss)		(12,855	)		(99	)		(532,725	)		(32,225	)		33
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,033,609			1,529			2,782,408			297,759			2,455
Realized Gain (Loss) on Investments		1,031,780			2,454			2,688,346			149,634			(3	)

Net Realized Capital Gains (Losses) on Investments		2,065,389			3,983			5,470,754			447,393			2,452
Net Change in Unrealized Appreciation (Depreciation)		2,978,803			1,673			5,748,411			224,104			7,599

Net Gain (Loss) on Investment		5,044,192			5,656			11,219,165			671,497			10,051
Net Increase (Decrease) in Net Assets Resulting from Operations		5,031,337			5,557			10,686,440			639,272			10,084

Increase (Decrease) in Net Assets from Contract Transactions		(6,077,211	)		(6,470	)		(4,989,680	)		79,760			45,982

Total Increase (Decrease) in Net Assets		(1,045,874	)		(913	)		5,696,760			719,032			56,066

Net Assets as of December 31, 2017:	$	48,184,382		$	18,642		$	40,016,140		$	2,711,713		$	108,346

Investment Income:
Reinvested Dividends		879,594			47			16,492			2,369			652
Investment Expense:
Mortality and Expense Risk and Administrative Charges		666,709			153			591,086			39,014			666

Net Investment Income (Loss)		212,885			(106	)		(574,594	)		(36,645	)		(14	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,172,474			2,671			5,700,663			150,648			8,670
Realized Gain (Loss) on Investments		1,024,575			258			3,611,091			474,380			654

Net Realized Capital Gains (Losses) on Investments		3,197,049			2,929			9,311,754			625,028			9,324
Net Change in Unrealized Appreciation (Depreciation)		(7,643,072	)		(2,912	)		(8,969,884	)		(304,192	)		(23,703	)

Net Gain (Loss) on Investment		(4,446,023	)		17			341,870			320,836			(14,379	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(4,233,138	)		(89	)		(232,724	)		284,191			(14,393	)

Increase (Decrease) in Net Assets from Contract Transactions		(6,211,153	)		(992	)		(6,087,010	)		(649,439	)		(11,283	)

Total Increase (Decrease) in Net Assets		(10,444,291	)		(1,081	)		(6,319,734	)		(365,248	)		(25,676	)

Net Assets as of December 31, 2018:	$	37,740,091		$	17,561		$	33,696,406		$	2,346,465		$	82,670

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Fidelity^® VIP Mid Cap Service Class 2			Fidelity^® VIP Value Strategies Initial Class			Fidelity^® VIP Value Strategies Service Class 2			Franklin Founding Funds Allocation Class 4 Shares			Franklin Income Class 2 Shares
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	316,226,522		$	187,030		$	128,230,984		$	112,099,678		$	83,312,836

Investment Income:
Reinvested Dividends		1,710,549			4,617			1,731,403			2,804,077			3,315,815
Investment Expense:
Mortality and Expense Risk and Administrative Charges		5,073,781			1,959			2,044,335			1,805,136			1,161,858

Net Investment Income (Loss)		(3,363,232	)		2,658			(312,932	)		998,941			2,153,957
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		15,882,548			73,224			32,443,575			4,496,968			—
Realized Gain (Loss) on Investments		5,110,071			2,565			5,182,451			174,838			1,109,068

Net Realized Capital Gains (Losses) on Investments		20,992,619			75,789			37,626,026			4,671,806			1,109,068
Net Change in Unrealized Appreciation (Depreciation)		42,316,526			(27,440	)		(15,040,289	)		4,796,043			2,957,782

Net Gain (Loss) on Investment		63,309,145			48,349			22,585,737			9,467,849			4,066,850
Net Increase (Decrease) in Net Assets Resulting from Operations		59,945,913			51,007			22,272,805			10,466,790			6,220,807

Increase (Decrease) in Net Assets from Contract Transactions		(1,795,527	)		92,132			(796,423	)		(17,700,539	)		(13,489,553	)

Total Increase (Decrease) in Net Assets		58,150,386			143,139			21,476,382			(7,233,749	)		(7,268,746	)

Net Assets as of December 31, 2017:	$	374,376,908		$	330,169		$	149,707,366		$	104,865,929		$	76,044,090

Investment Income:
Reinvested Dividends		1,437,146			2,997			1,011,720			2,663,278			3,328,980
Investment Expense:
Mortality and Expense Risk and Administrative Charges		5,342,934			2,257			2,073,720			1,536,772			1,023,792

Net Investment Income (Loss)		(3,905,788	)		740			(1,062,000	)		1,126,506			2,305,188
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		32,160,139			14,038			6,379,381			2,179,614			—
Realized Gain (Loss) on Investments		6,025,991			(5,806	)		3,097,543			(43,118	)		1,036,646

Net Realized Capital Gains (Losses) on Investments		38,186,130			8,232			9,476,924			2,136,496			1,036,646
Net Change in Unrealized Appreciation (Depreciation)		(89,722,843	)		(73,222	)		(35,838,580	)		(12,814,671	)		(7,030,985	)

Net Gain (Loss) on Investment		(51,536,713	)		(64,990	)		(26,361,656	)		(10,678,175	)		(5,994,339	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(55,442,501	)		(64,250	)		(27,423,656	)		(9,551,669	)		(3,689,151	)

Increase (Decrease) in Net Assets from Contract Transactions		(30,103,231	)		(10,630	)		(5,287,263	)		(20,304,661	)		(12,420,005	)

Total Increase (Decrease) in Net Assets		(85,545,732	)		(74,880	)		(32,710,919	)		(29,856,330	)		(16,109,156	)

Net Assets as of December 31, 2018:	$	288,831,176		$	255,289		$	116,996,447		$	75,009,599		$	59,934,934

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Franklin Mutual Shares Class 2 Shares			Franklin Templeton Foreign Class 2 Shares			Invesco V.I. American Franchise Series II Shares			Janus Henderson - Enterprise Service Shares			Janus Henderson - Global Research Service Shares
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	18,358,702		$	32,654,219		$	6,543,470		$	19,751,582		$	25,804,944

Investment Income:
Reinvested Dividends		391,793			863,943			—			115,262			190,513
Investment Expense:
Mortality and Expense Risk and Administrative Charges		261,204			497,857			107,269			314,743			409,770

Net Investment Income (Loss)		130,589			366,086			(107,269	)		(199,481	)		(219,257	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		710,509			—			579,240			1,340,550			—
Realized Gain (Loss) on Investments		629,157			414,507			368,735			1,229,939			1,374,519

Net Realized Capital Gains (Losses) on Investments		1,339,666			414,507			947,975			2,570,489			1,374,519
Net Change in Unrealized Appreciation (Depreciation)		(294,548	)		3,864,363			754,245			2,425,196			4,967,587

Net Gain (Loss) on Investment		1,045,118			4,278,870			1,702,220			4,995,685			6,342,106
Net Increase (Decrease) in Net Assets Resulting from Operations		1,175,707			4,644,956			1,594,951			4,796,204			6,122,849

Increase (Decrease) in Net Assets from Contract Transactions		(2,453,023	)		(4,457,766	)		(832,760	)		(1,956,028	)		(2,780,775	)

Total Increase (Decrease) in Net Assets		(1,277,316	)		187,190			762,191			2,840,176			3,342,074

Net Assets as of December 31, 2017:	$	17,081,386		$	32,841,409		$	7,305,661		$	22,591,758		$	29,147,018

Investment Income:
Reinvested Dividends		368,906			777,061			—			30,151			264,104
Investment Expense:
Mortality and Expense Risk and Administrative Charges		233,440			441,133			109,445			336,993			410,761

Net Investment Income (Loss)		135,466			335,928			(109,445	)		(306,842	)		(146,657	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		574,432			—			466,002			1,110,104			—
Realized Gain (Loss) on Investments		535,517			406,202			540,953			1,657,479			2,273,173

Net Realized Capital Gains (Losses) on Investments		1,109,949			406,202			1,006,955			2,767,583			2,273,173
Net Change in Unrealized Appreciation (Depreciation)		(2,802,329	)		(5,652,067	)		(1,171,656	)		(2,727,077	)		(4,181,013	)

Net Gain (Loss) on Investment		(1,692,380	)		(5,245,865	)		(164,701	)		40,506			(1,907,840	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,556,914	)		(4,909,937	)		(274,146	)		(266,336	)		(2,054,497	)

Increase (Decrease) in Net Assets from Contract Transactions		(2,199,957	)		(4,608,750	)		(1,117,449	)		(2,568,178	)		(4,185,499	)

Total Increase (Decrease) in Net Assets		(3,756,871	)		(9,518,687	)		(1,391,595	)		(2,834,514	)		(6,239,996	)

Net Assets as of December 31, 2018:	$	13,324,515		$	23,322,722		$	5,914,066		$	19,757,244		$	22,907,022

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Janus Henderson - Mid Cap Value Service Shares			MFS^® New Discovery Service Class			MFS^® Total Return Service Class			NVIT Emerging Markets Class D Shares			Rational Insider Buying VA
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	2,972,307		$	41,335,561		$	51,932,163		$	18,774		$	2,561,942

Investment Income:
Reinvested Dividends		19,514			—			1,108,023			184			13,597
Investment Expense:
Mortality and Expense Risk and Administrative Charges		44,192			631,488			752,548			100			33,852

Net Investment Income (Loss)		(24,678	)		(631,488	)		355,475			84			(20,255	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		114,954			860,301			1,422,329			—			303,948
Realized Gain (Loss) on Investments		14,249			447,242			1,894,751			456			(91,311	)

Net Realized Capital Gains (Losses) on Investments		129,203			1,307,543			3,317,080			456			212,637
Net Change in Unrealized Appreciation (Depreciation)		244,440			8,676,946			1,419,095			6,275			176,794

Net Gain (Loss) on Investment		373,643			9,984,489			4,736,175			6,731			389,431
Net Increase (Decrease) in Net Assets Resulting from Operations		348,965			9,353,001			5,091,650			6,815			369,176

Increase (Decrease) in Net Assets from Contract Transactions		(93,059	)		(5,752,368	)		(6,360,225	)		(3,907	)		(454,439	)

Total Increase (Decrease) in Net Assets		255,906			3,600,633			(1,268,575	)		2,908			(85,263	)

Net Assets as of December 31, 2017:	$	3,228,213		$	44,936,194		$	50,663,588		$	21,682		$	2,476,679

Investment Income:
Reinvested Dividends		26,976			—			901,922			70			15,064
Investment Expense:
Mortality and Expense Risk and Administrative Charges		44,126			682,331			684,652			98			32,038

Net Investment Income (Loss)		(17,150	)		(682,331	)		217,270			(28	)		(16,974	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		267,993			6,339,944			2,076,836			—			100,840
Realized Gain (Loss) on Investments		21,836			1,658,627			1,923,864			82			(245,228	)

Net Realized Capital Gains (Losses) on Investments		289,829			7,998,571			4,000,700			82			(144,388	)
Net Change in Unrealized Appreciation (Depreciation)		(738,753	)		(7,955,942	)		(7,499,871	)		(3,942	)		9,063

Net Gain (Loss) on Investment		(448,924	)		42,629			(3,499,171	)		(3,860	)		(135,325	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(466,074	)		(639,702	)		(3,281,901	)		(3,888	)		(152,299	)

Increase (Decrease) in Net Assets from Contract Transactions		(196,035	)		(6,673,551	)		(6,817,023	)		(285	)		(435,979	)

Total Increase (Decrease) in Net Assets		(662,109	)		(7,313,253	)		(10,098,924	)		(4,173	)		(588,278	)

Net Assets as of December 31, 2018:	$	2,566,104		$	37,622,941		$	40,564,664		$	17,509		$	1,888,401

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Rational Trend Aggregation VA			State Street Total Return V.I.S. Class 3 Shares			TA 60/40 Allocation Service Class			TA Aegon High Yield Bond Initial Class			TA Aegon High Yield Bond Service Class
	Subaccount			Subaccount			Subaccount⁽¹⁾			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	2,218,052		$	54,132,289		$	—		$	85,399,506		$	155,587,458

Investment Income:
Reinvested Dividends		63,429			976,370			—			4,928,974			8,852,577
Investment Expense:
Mortality and Expense Risk and Administrative Charges		26,764			904,227			—			1,221,638			2,345,284

Net Investment Income (Loss)		36,665			72,143			—			3,707,336			6,507,293
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			1,508,478			—			—			—
Realized Gain (Loss) on Investments		43,054			1,179,224			—			443,832			1,232,910

Net Realized Capital Gains (Losses) on Investments		43,054			2,687,702			—			443,832			1,232,910
Net Change in Unrealized Appreciation (Depreciation)		(145,345	)		4,166,449			—			688,740			1,189,438

Net Gain (Loss) on Investment		(102,291	)		6,854,151			—			1,132,572			2,422,348
Net Increase (Decrease) in Net Assets Resulting from Operations		(65,626	)		6,926,294			—			4,839,908			8,929,641

Increase (Decrease) in Net Assets from Contract Transactions		(382,744	)		(3,581,038	)		—			(7,303,630	)		(6,864,378	)

Total Increase (Decrease) in Net Assets		(448,370	)		3,345,256			—			(2,463,722	)		2,065,263

Net Assets as of December 31, 2017:	$	1,769,682		$	57,477,545		$	—		$	82,935,784		$	157,652,721

Investment Income:
Reinvested Dividends		61,560			1,027,740			—			4,803,811			9,081,105
Investment Expense:
Mortality and Expense Risk and Administrative Charges		21,256			904,553			27,257			1,134,796			2,197,967

Net Investment Income (Loss)		40,304			123,187			(27,257	)		3,669,015			6,883,138
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			10,847,520			—			—			—
Realized Gain (Loss) on Investments		(1,146	)		1,253,802			(9,588	)		(662,004	)		(1,048,014	)

Net Realized Capital Gains (Losses) on Investments		(1,146	)		12,101,322			(9,588	)		(662,004	)		(1,048,014	)
Net Change in Unrealized Appreciation (Depreciation)		(132,851	)		(16,719,837	)		(361,181	)		(5,738,382	)		(11,960,675	)

Net Gain (Loss) on Investment		(133,997	)		(4,618,515	)		(370,769	)		(6,400,386	)		(13,008,689	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(93,693	)		(4,495,328	)		(398,026	)		(2,731,371	)		(6,125,551	)

Increase (Decrease) in Net Assets from Contract Transactions		(305,011	)		(4,370,666	)		7,957,827			(12,687,646	)		(14,115,742	)

Total Increase (Decrease) in Net Assets		(398,704	)		(8,865,994	)		7,559,801			(15,419,017	)		(20,241,293	)

Net Assets as of December 31, 2018:	$	1,370,978		$	48,611,551		$	7,559,801		$	67,516,767		$	137,411,428

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Aegon U.S. Government Securities Initial Class			TA Aegon U.S. Government Securities Service Class			TA American Funds Managed Risk - Balanced Service Class			TA Barrow Hanley Dividend Focused Initial Class			TA Barrow Hanley Dividend Focused Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	73,562,770		$	384,537,007		$	362,577,579		$	363,999,021		$	168,373,821

Investment Income:
Reinvested Dividends		2,538,820			7,780,116			3,498,623			8,791,094			3,889,788
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,006,086			3,878,483			7,466,405			5,505,842			2,578,433

Net Investment Income (Loss)		1,532,734			3,901,633			(3,967,782	)		3,285,252			1,311,355
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		5,309,737			18,670,273			492,161			—			—
Realized Gain (Loss) on Investments		(2,122,871	)		(8,592,903	)		5,227,773			22,834,986			10,132,751

Net Realized Capital Gains (Losses) on Investments		3,186,866			10,077,370			5,719,934			22,834,986			10,132,751
Net Change in Unrealized Appreciation (Depreciation)		(3,895,823	)		(10,566,137	)		63,318,221			26,815,156			12,636,937

Net Gain (Loss) on Investment		(708,957	)		(488,767	)		69,038,155			49,650,142			22,769,688
Net Increase (Decrease) in Net Assets Resulting from Operations		823,777			3,412,866			65,070,373			52,935,394			24,081,043

Increase (Decrease) in Net Assets from Contract Transactions		(9,339,780	)		(189,062,525	)		224,964,815			(16,849,182	)		(7,638,522	)

Total Increase (Decrease) in Net Assets		(8,516,003	)		(185,649,659	)		290,035,188			36,086,212			16,442,521

Net Assets as of December 31, 2017:	$	65,046,767		$	198,887,348		$	652,612,767		$	400,085,233		$	184,816,342

Investment Income:
Reinvested Dividends		1,801,119			4,495,288			6,179,142			7,680,832			3,230,567
Investment Expense:
Mortality and Expense Risk and Administrative Charges		909,475			2,637,035			9,593,574			5,359,548			2,467,327

Net Investment Income (Loss)		891,644			1,858,253			(3,414,432	)		2,321,284			763,240
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			23,701,607			—			—
Realized Gain (Loss) on Investments		(2,543,945	)		(11,098,320	)		9,808,407			35,262,540			12,052,134

Net Realized Capital Gains (Losses) on Investments		(2,543,945	)		(11,098,320	)		33,510,014			35,262,540			12,052,134
Net Change in Unrealized Appreciation (Depreciation)		831,313			7,982,314			(84,432,499	)		(82,401,218	)		(34,763,229	)

Net Gain (Loss) on Investment		(1,712,632	)		(3,116,006	)		(50,922,485	)		(47,138,678	)		(22,711,095	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(820,988	)		(1,257,753	)		(54,336,917	)		(44,817,394	)		(21,947,855	)

Increase (Decrease) in Net Assets from Contract Transactions		(2,011,064	)		121,067,933			126,039,608			(56,370,913	)		(23,679,473	)

Total Increase (Decrease) in Net Assets		(2,832,052	)		119,810,180			71,702,691			(101,188,307	)		(45,627,328	)

Net Assets as of December 31, 2018:	$	62,214,715		$	318,697,528		$	724,315,458		$	298,896,926		$	139,189,014

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA BlackRock Equity Smart Beta 100 Service Class Subaccount			TA BlackRock Global Allocation Service Class Subaccount			TA BlackRock Global Allocation Managed Risk - Balanced Service Class Subaccount			TA BlackRock Global Allocation Managed Risk - Growth Service Class Subaccount
Net Assets as of December 31, 2016:	$	23,122,979		$	1,268,057,537		$	162,138,960		$	168,412,121

Investment Income:
Reinvested Dividends		178,397			14,438,010			1,243,287			1,172,119
Investment Expense:
Mortality and Expense Risk and Administrative Charges		372,904			18,515,960			2,437,010			2,451,205

Net Investment Income (Loss)		(194,507	)		(4,077,950	)		(1,193,723	)		(1,279,086	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		32,993			—			—			—
Realized Gain (Loss) on Investments		734,896			11,151,896			(2,487,025	)		(3,124,381	)

Net Realized Capital Gains (Losses) on Investments		767,889			11,151,896			(2,487,025	)		(3,124,381	)
Net Change in Unrealized Appreciation (Depreciation)		5,795,587			142,522,093			22,485,113			31,372,175

Net Gain (Loss) on Investment		6,563,476			153,673,989			19,998,088			28,247,794
Net Increase (Decrease) in Net Assets Resulting from Operations		6,368,969			149,596,039			18,804,365			26,968,708

Increase (Decrease) in Net Assets from Contract Transactions		10,429,091			(46,920,813	)		17,371,934			13,151,564

Total Increase (Decrease) in Net Assets		16,798,060			102,675,226			36,176,299			40,120,272

Net Assets as of December 31, 2017:	$	39,921,039		$	1,370,732,763		$	198,315,259		$	208,532,393

Investment Income:
Reinvested Dividends		499,500			14,147,367			2,586,089			2,550,098
Investment Expense:
Mortality and Expense Risk and Administrative Charges		484,094			17,717,611			2,867,457			2,758,739

Net Investment Income (Loss)		15,406			(3,570,244	)		(281,368	)		(208,641	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		487,976			13,664,203			—			1,672,362
Realized Gain (Loss) on Investments		2,206,755			17,963,660			(1,264,990	)		(1,212,505	)

Net Realized Capital Gains (Losses) on Investments		2,694,731			31,627,863			(1,264,990	)		459,857
Net Change in Unrealized Appreciation (Depreciation)		(5,174,265	)		(139,096,319	)		(19,185,140	)		(23,964,658	)

Net Gain (Loss) on Investment		(2,479,534	)		(107,468,456	)		(20,450,130	)		(23,504,801	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(2,464,128	)		(111,038,700	)		(20,731,498	)		(23,713,442	)

Increase (Decrease) in Net Assets from Contract Transactions		(2,536,990	)		(158,671,215	)		39,190,066			(5,419,377	)

Total Increase (Decrease) in Net Assets		(5,001,118	)		(269,709,915	)		18,458,568			(29,132,819	)

Net Assets as of December 31, 2018:	$	34,919,921		$	1,101,022,848		$	216,773,827		$	179,399,574

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA BlackRock Global Real Estate Securities Initial Class Subaccount			TA BlackRock Global Real Estate Securities Service Class Subaccount			TA BlackRock Government Money Market Initial Class Subaccount			TA BlackRock Government Money Market Service Class Subaccount			TA BlackRock Smart Beta 40 Initial Class Subaccount
Net Assets as of December 31, 2016:	$	44,536,161		$	84,311,623		$	109,373,936		$	383,959,184		$	21,495,544

Investment Income:
Reinvested Dividends		1,607,121			2,767,019			5,176			16,816			349,550
Investment Expense:
Mortality and Expense Risk and Administrative Charges		644,489			1,226,576			1,506,954			4,522,280			294,690

Net Investment Income (Loss)		962,632			1,540,443			(1,501,778	)		(4,505,464	)		54,860
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			—			—
Realized Gain (Loss) on Investments		889,635			1,047,962			—			—			680,252

Net Realized Capital Gains (Losses) on Investments		889,635			1,047,962			—			—			680,252
Net Change in Unrealized Appreciation (Depreciation)		2,272,362			5,152,464			—			—			863,185

Net Gain (Loss) on Investment		3,161,997			6,200,426			—			—			1,543,437
Net Increase (Decrease) in Net Assets Resulting from Operations		4,124,629			7,740,869			(1,501,778	)		(4,505,464	)		1,598,297

Increase (Decrease) in Net Assets from Contract Transactions		(3,290,648	)		(4,362,195	)		(18,706,668	)		(82,895,351	)		(3,198,900	)

Total Increase (Decrease) in Net Assets		833,981			3,378,674			(20,208,446	)		(87,400,815	)		(1,600,603	)

Net Assets as of December 31, 2017:	$	45,370,142		$	87,690,297		$	89,165,490		$	296,558,369		$	19,894,941

Investment Income:
Reinvested Dividends		3,489,249			6,318,328			1,579,630			2,621,215			351,672
Investment Expense:
Mortality and Expense Risk and Administrative Charges		611,899			1,140,464			1,363,382			4,237,802			273,732

Net Investment Income (Loss)		2,877,350			5,177,864			216,248			(1,616,587	)		77,940
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			—			—
Realized Gain (Loss) on Investments		846,951			67,515			—			—			563,431

Net Realized Capital Gains (Losses) on Investments		846,951			67,515			—			—			563,431
Net Change in Unrealized Appreciation (Depreciation)		(8,522,670	)		(14,750,973	)		—			—			(1,671,886	)

Net Gain (Loss) on Investment		(7,675,719	)		(14,683,458	)		—			—			(1,108,455	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(4,798,369	)		(9,505,594	)		216,248			(1,616,587	)		(1,030,515	)

Increase (Decrease) in Net Assets from Contract Transactions		(4,880,100	)		(9,960,648	)		3,354,828			44,939,274			(2,026,981	)

Total Increase (Decrease) in Net Assets		(9,678,469	)		(19,466,242	)		3,571,076			43,322,687			(3,057,496	)

Net Assets as of December 31, 2018:	$	35,691,673		$	68,224,055		$	92,736,566		$	339,881,056		$	16,837,445

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA BlackRock Smart Beta 40 Service Class			TA BlackRock Smart Beta 50 Service Class			TA BlackRock Smart Beta 75 Service Class			TA BlackRock Tactical Allocation Service Class			TA Greystone International Growth Initial Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	339,898,668		$	41,974,799		$	11,506,416		$	1,444,210,976		$	65,293,820

Investment Income:
Reinvested Dividends		4,919,858			414,758			97,774			21,612,290			1,023,426
Investment Expense:
Mortality and Expense Risk and Administrative Charges		4,514,302			717,888			244,320			20,490,691			1,107,093

Net Investment Income (Loss)		405,556			(303,130	)		(146,546	)		1,121,599			(83,667	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			85,812			27,849			24,436,099			—
Realized Gain (Loss) on Investments		7,370,285			693,325			194,838			12,508,824			2,052,650

Net Realized Capital Gains (Losses) on Investments		7,370,285			779,137			222,687			36,944,923			2,052,650
Net Change in Unrealized Appreciation (Depreciation)		17,729,992			5,431,722			3,092,141			104,506,238			14,911,412

Net Gain (Loss) on Investment		25,100,277			6,210,859			3,314,828			141,451,161			16,964,062
Net Increase (Decrease) in Net Assets Resulting from Operations		25,505,833			5,907,729			3,168,282			142,572,760			16,880,395

Increase (Decrease) in Net Assets from Contract Transactions		(41,082,107	)		15,335,651			11,693,248			(102,984,484	)		4,327,514

Total Increase (Decrease) in Net Assets		(15,576,274	)		21,243,380			14,861,530			39,588,276			21,207,909

Net Assets as of December 31, 2017:	$	324,322,394		$	63,218,179		$	26,367,946		$	1,483,799,252		$	86,501,729

Investment Income:
Reinvested Dividends		5,013,195			934,670			366,297			13,538,055			1,034,176
Investment Expense:
Mortality and Expense Risk and Administrative Charges		4,171,345			1,192,147			475,470			19,357,222			1,215,170

Net Investment Income (Loss)		841,850			(257,477	)		(109,173	)		(5,819,167	)		(180,994	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			553,348			210,784			61,423,750			439,658
Realized Gain (Loss) on Investments		6,384,143			1,188,982			815,599			14,676,114			3,167,716

Net Realized Capital Gains (Losses) on Investments		6,384,143			1,742,330			1,026,383			76,099,864			3,607,374
Net Change in Unrealized Appreciation (Depreciation)		(24,843,508	)		(6,443,198	)		(4,774,889	)		(146,301,675	)		(20,077,369	)

Net Gain (Loss) on Investment		(18,459,365	)		(4,700,868	)		(3,748,506	)		(70,201,811	)		(16,469,995	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(17,617,515	)		(4,958,345	)		(3,857,679	)		(76,020,978	)		(16,650,989	)

Increase (Decrease) in Net Assets from Contract Transactions		(29,431,955	)		78,270,232			37,636,794			(173,996,350	)		731,991

Total Increase (Decrease) in Net Assets		(47,049,470	)		73,311,887			33,779,115			(250,017,328	)		(15,918,998	)

Net Assets as of December 31, 2018:	$	277,272,924		$	136,530,066		$	60,147,061		$	1,233,781,924		$	70,582,731

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Greystone International Growth Service Class			TA International Equity Index Service Class			TA Janus Balanced Service Class			TA Janus Mid-Cap Growth Initial Class			TA Janus Mid-Cap Growth Service Class
	Subaccount			Subaccount⁽¹⁾			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	84,422,845		$	—		$	687,948,240		$	60,228,303		$	63,321,902

Investment Income:
Reinvested Dividends		1,190,277			—			10,235,658			70,225			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,408,799			24,375			10,685,739			987,835			1,032,292

Net Investment Income (Loss)		(218,522	)		(24,375	)		(450,081	)		(917,610	)		(1,032,292	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			3,630,878			443,138			502,665
Realized Gain (Loss) on Investments		1,956,791			12,331			13,124,035			439,469			(1,616,980	)

Net Realized Capital Gains (Losses) on Investments		1,956,791			12,331			16,754,913			882,607			(1,114,315	)
Net Change in Unrealized Appreciation (Depreciation)		20,339,433			292,290			92,212,070			16,110,152			19,413,457

Net Gain (Loss) on Investment		22,296,224			304,621			108,966,983			16,992,759			18,299,142
Net Increase (Decrease) in Net Assets Resulting from Operations		22,077,702			280,246			108,516,902			16,075,149			17,266,850

Increase (Decrease) in Net Assets from Contract Transactions		9,636,293			6,667,863			40,510,924			(2,542,164	)		2,963,473

Total Increase (Decrease) in Net Assets		31,713,995			6,948,109			149,027,826			13,532,985			20,230,323

Net Assets as of December 31, 2017:	$	116,136,840		$	6,948,109		$	836,976,066		$	73,761,288		$	83,552,225

Investment Income:
Reinvested Dividends		1,010,086			59,350			12,660,967			45,377			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,461,482			183,098			11,792,056			1,155,201			1,297,601

Net Investment Income (Loss)		(451,396	)		(123,748	)		868,911			(1,109,824	)		(1,297,601	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		545,933			33,317			20,853,678			3,366,181			4,267,026
Realized Gain (Loss) on Investments		2,772,957			(77,179	)		19,406,380			2,475,641			(16,669	)

Net Realized Capital Gains (Losses) on Investments		3,318,890			(43,862	)		40,260,058			5,841,822			4,250,357
Net Change in Unrealized Appreciation (Depreciation)		(23,762,175	)		(2,630,636	)		(54,836,781	)		(6,344,302	)		(6,211,549	)

Net Gain (Loss) on Investment		(20,443,285	)		(2,674,498	)		(14,576,723	)		(502,480	)		(1,961,192	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(20,894,681	)		(2,798,246	)		(13,707,812	)		(1,612,304	)		(3,258,793	)

Increase (Decrease) in Net Assets from Contract Transactions		(10,800,517	)		12,117,307			17,648,306			(4,246,526	)		6,073,369

Total Increase (Decrease) in Net Assets		(31,695,198	)		9,319,061			3,940,494			(5,858,830	)		2,814,576

Net Assets as of December 31, 2018:	$	84,441,642		$	16,267,170		$	840,916,560		$	67,902,458		$	86,366,801

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Jennison Growth Initial Class			TA Jennison Growth Service Class			TA JPMorgan Asset Allocation - Conservative Initial Class			TA JPMorgan Asset Allocation - Conservative Service Class			TA JPMorgan Asset Allocation - Growth Initial Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	165,555,512		$	88,426,137		$	176,881,894		$	1,021,657,645		$	254,491,186

Investment Income:
Reinvested Dividends		12,425			—			3,636,647			19,586,273			4,002,104
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,729,377			1,551,000			2,578,649			14,266,476			4,078,112

Net Investment Income (Loss)		(2,716,952	)		(1,551,000	)		1,057,998			5,319,797			(76,008	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		19,693,104			11,818,204			2,729,846			16,664,670			6,043,863
Realized Gain (Loss) on Investments		6,516,720			(790,780	)		1,219,384			4,030,895			10,900,393

Net Realized Capital Gains (Losses) on Investments		26,209,824			11,027,424			3,949,230			20,695,565			16,944,256
Net Change in Unrealized Appreciation (Depreciation)		31,651,570			21,603,025			13,448,450			82,925,628			39,742,810

Net Gain (Loss) on Investment		57,861,394			32,630,449			17,397,680			103,621,193			56,687,066
Net Increase (Decrease) in Net Assets Resulting from Operations		55,144,442			31,079,449			18,455,678			108,940,990			56,611,058

Increase (Decrease) in Net Assets from Contract Transactions		(12,988,889	)		7,681,134			(23,875,280	)		(70,283,184	)		(12,623,521	)

Total Increase (Decrease) in Net Assets		42,155,553			38,760,583			(5,419,602	)		38,657,806			43,987,537

Net Assets as of December 31, 2017:	$	207,711,065		$	127,186,720		$	171,462,292		$	1,060,315,451		$	298,478,723

Investment Income:
Reinvested Dividends		39,656			—			3,001,075			15,847,756			5,223,935
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,240,332			1,946,703			2,489,809			13,742,943			4,305,863

Net Investment Income (Loss)		(3,200,676	)		(1,946,703	)		511,266			2,104,813			918,072
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		24,503,812			15,800,860			6,774,998			41,677,776			18,191,915
Realized Gain (Loss) on Investments		11,584,281			512,860			860,650			4,529,697			19,457,960

Net Realized Capital Gains (Losses) on Investments		36,088,093			16,313,720			7,635,648			46,207,473			37,649,875
Net Change in Unrealized Appreciation (Depreciation)		(36,632,012	)		(18,460,948	)		(16,899,790	)		(103,685,355	)		(70,044,986	)

Net Gain (Loss) on Investment		(543,919	)		(2,147,228	)		(9,264,142	)		(57,477,882	)		(32,395,111	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,744,595	)		(4,093,931	)		(8,752,876	)		(55,373,069	)		(31,477,039	)

Increase (Decrease) in Net Assets from Contract Transactions		(11,272,133	)		(828,037	)		(16,065,938	)		(94,266,024	)		(27,107,213	)

Total Increase (Decrease) in Net Assets		(15,016,728	)		(4,921,968	)		(24,818,814	)		(149,639,093	)		(58,584,252	)

Net Assets as of December 31, 2018:	$	192,694,337		$	122,264,752		$	146,643,478		$	910,676,358		$	239,894,471

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA JPMorgan Asset Allocation - Growth Service Class Subaccount			TA JPMorgan Asset Allocation - Moderate Initial Class Subaccount			TA JPMorgan Asset Allocation - Moderate Service Class Subaccount			TA JPMorgan Asset Allocation - Moderate Growth Initial Class Subaccount			TA JPMorgan Asset Allocation - Moderate Growth Service Class Subaccount
Net Assets as of December 31, 2016:	$	184,665,448		$	403,302,456		$	4,884,558,926		$	477,491,105		$	3,249,120,855

Investment Income:
Reinvested Dividends		2,538,341			7,556,791			84,336,647			8,586,673			53,393,888
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,871,190			5,992,214			68,210,923			7,442,507			50,326,130

Net Investment Income (Loss)		(332,849	)		1,564,577			16,125,724			1,144,166			3,067,758
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		4,532,063			8,995,713			115,050,042			16,651,210			119,140,908
Realized Gain (Loss) on Investments		8,504,103			10,138,272			48,798,939			11,235,491			55,920,976

Net Realized Capital Gains (Losses) on Investments		13,036,166			19,133,985			163,848,981			27,886,701			175,061,884
Net Change in Unrealized Appreciation (Depreciation)		28,873,724			35,246,376			511,850,858			53,776,236			393,086,994

Net Gain (Loss) on Investment		41,909,890			54,380,361			675,699,839			81,662,937			568,148,878
Net Increase (Decrease) in Net Assets Resulting from Operations		41,577,041			55,944,938			691,825,563			82,807,103			571,216,636

Increase (Decrease) in Net Assets from Contract Transactions		(4,758,149	)		(42,800,281	)		(323,637,328	)		(35,429,499	)		(101,726,997	)

Total Increase (Decrease) in Net Assets		36,818,892			13,144,657			368,188,235			47,377,604			469,489,639

Net Assets as of December 31, 2017:	$	221,484,340		$	416,447,113		$	5,252,747,161		$	524,868,709		$	3,718,610,494

Investment Income:
Reinvested Dividends		3,521,544			6,928,437			81,347,678			9,390,133			58,762,585
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,002,950			5,997,673			69,686,661			7,650,250			51,355,778

Net Investment Income (Loss)		518,594			930,764			11,661,017			1,739,883			7,406,807
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		14,076,903			18,845,225			256,019,570			26,047,189			187,392,076
Realized Gain (Loss) on Investments		10,244,804			11,850,980			61,697,605			14,059,267			69,163,160

Net Realized Capital Gains (Losses) on Investments		24,321,707			30,696,205			317,717,175			40,106,456			256,555,236
Net Change in Unrealized Appreciation (Depreciation)		(49,804,894	)		(57,132,801	)		(677,778,857	)		(83,530,865	)		(562,233,629	)

Net Gain (Loss) on Investment		(25,483,187	)		(26,436,596	)		(360,061,682	)		(43,424,409	)		(305,678,393	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(24,964,593	)		(25,505,832	)		(348,400,665	)		(41,684,526	)		(298,271,586	)

Increase (Decrease) in Net Assets from Contract Transactions		(17,341,615	)		(30,993,241	)		14,217,256			(33,202,167	)		(307,003,337	)

Total Increase (Decrease) in Net Assets		(42,306,208	)		(56,499,073	)		(334,183,409	)		(74,886,693	)		(605,274,923	)

Net Assets as of December 31, 2018:	$	179,178,132		$	359,948,040		$	4,918,563,752		$	449,982,016		$	3,113,335,571

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA JPMorgan Core Bond Service Class Subaccount			TA JPMorgan Enhanced Index Initial Class Subaccount			TA JPMorgan Enhanced Index Service Class Subaccount			TA JPMorgan International Moderate Growth Initial Class Subaccount			TA JPMorgan International Moderate Growth Service Class Subaccount
Net Assets as of December 31, 2016:	$	225,404,212		$	106,614,195		$	51,966,255		$	80,122		$	551,114,925

Investment Income:
Reinvested Dividends		5,832,530			665,824			251,368			1,620			9,723,149
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,016,043			1,705,763			895,591			397			8,601,965

Net Investment Income (Loss)		2,816,487			(1,039,939	)		(644,223	)		1,223			1,121,184
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			2,347,479			1,255,601			—			—
Realized Gain (Loss) on Investments		(139,705	)		7,469,287			1,459,592			314			9,121,284

Net Realized Capital Gains (Losses) on Investments		(139,705	)		9,816,766			2,715,193			314			9,121,284
Net Change in Unrealized Appreciation (Depreciation)		1,883,407			12,218,906			8,655,244			15,366			96,636,872

Net Gain (Loss) on Investment		1,743,702			22,035,672			11,370,437			15,680			105,758,156
Net Increase (Decrease) in Net Assets Resulting from Operations		4,560,189			20,995,733			10,726,214			16,903			106,879,340

Increase (Decrease) in Net Assets from Contract Transactions		4,965,138			(273,943	)		4,991,090			(1,810	)		2,362,361

Total Increase (Decrease) in Net Assets		9,525,327			20,721,790			15,717,304			15,093			109,241,701

Net Assets as of December 31, 2017:	$	234,929,539		$	127,335,985		$	67,683,559		$	95,215		$	660,356,626

Investment Income:
Reinvested Dividends		6,770,495			1,384,628			572,214			2,233			13,470,218
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,040,880			1,848,269			951,427			419			8,981,260

Net Investment Income (Loss)		3,729,615			(463,641	)		(379,213	)		1,814			4,488,958
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			5,424,515			2,840,685			939			6,298,142
Realized Gain (Loss) on Investments		(1,159,861	)		10,283,542			2,899,333			174			12,472,817

Net Realized Capital Gains (Losses) on Investments		(1,159,861	)		15,708,057			5,740,018			1,113			18,770,959
Net Change in Unrealized Appreciation (Depreciation)		(5,870,507	)		(24,335,163	)		(10,260,406	)		(14,415	)		(107,695,361	)

Net Gain (Loss) on Investment		(7,030,368	)		(8,627,106	)		(4,520,388	)		(13,302	)		(88,924,402	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,300,753	)		(9,090,747	)		(4,899,601	)		(11,488	)		(84,435,444	)

Increase (Decrease) in Net Assets from Contract Transactions		575,578			(7,223,910	)		(5,547,398	)		760			(38,544,128	)

Total Increase (Decrease) in Net Assets		(2,725,175	)		(16,314,657	)		(10,446,999	)		(10,728	)		(122,979,572	)

Net Assets as of December 31, 2018:	$	232,204,364		$	111,021,328		$	57,236,560		$	84,487		$	537,377,054

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA JPMorgan Mid Cap Value Service Class Subaccount			TA JPMorgan Tactical Allocation Service Class Subaccount			TA Legg Mason Dynamic Allocation - Balanced Service Class Subaccount			TA Legg Mason Dynamic Allocation - Growth Service Class Subaccount
Net Assets as of December 31, 2016:	$	198,647,207		$	1,253,888,489		$	1,174,416,752		$	513,884,084

Investment Income:
Reinvested Dividends		1,316,612			20,325,359			12,915,580			4,889,974
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,121,925			16,083,445			14,826,248			6,736,065

Net Investment Income (Loss)		(1,805,313	)		4,241,914			(1,910,668	)		(1,846,091	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		49,319,651			—			—			—
Realized Gain (Loss) on Investments		(2,247,733	)		18,158,168			12,057,642			2,257,264

Net Realized Capital Gains (Losses) on Investments		47,071,918			18,158,168			12,057,642			2,257,264
Net Change in Unrealized Appreciation (Depreciation)		(21,421,469	)		66,030,970			88,728,628			54,915,721

Net Gain (Loss) on Investment		25,650,449			84,189,138			100,786,270			57,172,985
Net Increase (Decrease) in Net Assets Resulting from Operations		23,845,136			88,431,052			98,875,602			55,326,894

Increase (Decrease) in Net Assets from Contract Transactions		11,517,777			(51,483,155	)		(139,124,080	)		(67,000,193	)

Total Increase (Decrease) in Net Assets		35,362,913			36,947,897			(40,248,478	)		(11,673,299	)

Net Assets as of December 31, 2017:	$	234,010,120		$	1,290,836,386		$	1,134,168,274		$	502,210,785

Investment Income:
Reinvested Dividends		1,432,946			22,962,363			15,067,413			5,806,082
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,201,315			15,281,519			14,001,932			6,449,680

Net Investment Income (Loss)		(1,768,369	)		7,680,844			1,065,481			(643,598	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		5,152,137			33,757,295			—			—
Realized Gain (Loss) on Investments		(15,026,561	)		16,392,735			9,338,234			3,828,946

Net Realized Capital Gains (Losses) on Investments		(9,874,424	)		50,150,030			9,338,234			3,828,946
Net Change in Unrealized Appreciation (Depreciation)		(17,979,187	)		(112,457,264	)		(58,464,232	)		(30,755,065	)

Net Gain (Loss) on Investment		(27,853,611	)		(62,307,234	)		(49,125,998	)		(26,926,119	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(29,621,980	)		(54,626,390	)		(48,060,517	)		(27,569,717	)

Increase (Decrease) in Net Assets from Contract Transactions		(18,266,603	)		(84,627,921	)		(98,479,266	)		(44,624,255	)

Total Increase (Decrease) in Net Assets		(47,888,583	)		(139,254,311	)		(146,539,783	)		(72,193,972	)

Net Assets as of December 31, 2018:	$	186,121,537		$	1,151,582,075		$	987,628,491		$	430,016,813

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Levin Large Cap Value Service Class Subaccount⁽¹⁾			TA Madison Balanced Allocation Service Class Subaccount			TA Madison Conservative Allocation Service Class Subaccount			TA Madison Diversified Income Service Class Subaccount			TA Managed Risk - Balanced ETF Service Class Subaccount
Net Assets as of December 31, 2016:	$	—		$	105,012,541		$	73,017,096		$	115,967,502		$	5,673,175,806

Investment Income:
Reinvested Dividends		—			1,924,085			1,393,880			1,965,339			98,736,631
Investment Expense:
Mortality and Expense Risk and Administrative Charges		—			1,441,798			977,154			1,620,670			74,090,044

Net Investment Income (Loss)		—			482,287			416,726			344,669			24,646,587
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			2,797,475			—
Realized Gain (Loss) on Investments		—			311,675			30,114			1,425,981			31,493,323

Net Realized Capital Gains (Losses) on Investments		—			311,675			30,114			4,223,456			31,493,323
Net Change in Unrealized Appreciation (Depreciation)		—			9,492,640			4,262,719			4,903,225			609,243,142

Net Gain (Loss) on Investment		—			9,804,315			4,292,833			9,126,681			640,736,465
Net Increase (Decrease) in Net Assets Resulting from Operations		—			10,286,602			4,709,559			9,471,350			665,383,052

Increase (Decrease) in Net Assets from Contract Transactions		—			(3,586,432	)		(6,777,316	)		5,006,171			(290,676,040	)

Total Increase (Decrease) in Net Assets		—			6,700,170			(2,067,757	)		14,477,521			374,707,012

Net Assets as of December 31, 2017:	$	—		$	111,712,711		$	70,949,339		$	130,445,023		$	6,047,882,818

Investment Income:
Reinvested Dividends		1,482			2,050,373			1,371,295			1,976,292			97,641,728
Investment Expense:
Mortality and Expense Risk and Administrative Charges		6,380			1,425,956			920,437			1,800,864			73,668,583

Net Investment Income (Loss)		(4,898	)		624,417			450,858			175,428			23,973,145
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		5,124			2,272,867			409,994			2,720,664			—
Realized Gain (Loss) on Investments		(30,272	)		735,154			149,385			1,968,821			54,494,346

Net Realized Capital Gains (Losses) on Investments		(25,148	)		3,008,021			559,379			4,689,485			54,494,346
Net Change in Unrealized Appreciation (Depreciation)		(179,166	)		(9,014,086	)		(3,218,712	)		(7,617,650	)		(404,234,504	)

Net Gain (Loss) on Investment		(204,314	)		(6,006,065	)		(2,659,333	)		(2,928,165	)		(349,740,158	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(209,212	)		(5,381,648	)		(2,208,475	)		(2,752,737	)		(325,767,013	)

Increase (Decrease) in Net Assets from Contract Transactions		2,309,422			(8,525,772	)		(5,750,058	)		8,095,572			(423,881,274	)

Total Increase (Decrease) in Net Assets		2,100,210			(13,907,420	)		(7,958,533	)		5,342,835			(749,648,287	)

Net Assets as of December 31, 2018:	$	2,100,210		$	97,805,291		$	62,990,806		$	135,787,858		$	5,298,234,531

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Managed Risk - Conservative ETF Service Class			TA Managed Risk - Growth ETF Service Class			TA Market Participation Strategy Service Class			TA Morgan Stanley Capital Growth Initial Class			TA Morgan Stanley Capital Growth Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	777,003,480		$	2,699,674,301		$	453,011,302		$	92,915,246		$	53,195,806

Investment Income:
Reinvested Dividends		14,038,933			45,378,154			1,355,027			—			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		9,872,468			37,289,218			5,977,877			1,703,972			1,079,903

Net Investment Income (Loss)		4,166,465			8,088,936			(4,622,850	)		(1,703,972	)		(1,079,903	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			7,707,076			5,358,123
Realized Gain (Loss) on Investments		2,823,066			7,834,179			7,187,544			4,713,330			668,926

Net Realized Capital Gains (Losses) on Investments		2,823,066			7,834,179			7,187,544			12,420,406			6,027,049
Net Change in Unrealized Appreciation (Depreciation)		63,758,495			424,830,314			36,315,807			27,471,214			18,937,537

Net Gain (Loss) on Investment		66,581,561			432,664,493			43,503,351			39,891,620			24,964,586
Net Increase (Decrease) in Net Assets Resulting from Operations		70,748,026			440,753,429			38,880,501			38,187,648			23,884,683

Increase (Decrease) in Net Assets from Contract Transactions		(76,192,866	)		(197,503,398	)		(57,483,173	)		(4,484,316	)		14,625,137

Total Increase (Decrease) in Net Assets		(5,444,840	)		243,250,031			(18,602,672	)		33,703,332			38,509,820

Net Assets as of December 31, 2017:	$	771,558,640		$	2,942,924,332		$	434,408,630		$	126,618,578		$	91,705,626

Investment Income:
Reinvested Dividends		13,084,632			43,797,138			1,514,085			—			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		9,394,838			36,526,279			5,722,074			2,191,411			1,627,984

Net Investment Income (Loss)		3,689,794			7,270,859			(4,207,989	)		(2,191,411	)		(1,627,984	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		4,837,108			—			22,758,494			25,470,999			20,904,609
Realized Gain (Loss) on Investments		5,410,902			30,891,031			8,288,939			9,831,505			4,864,513

Net Realized Capital Gains (Losses) on Investments		10,248,010			30,891,031			31,047,433			35,302,504			25,769,122
Net Change in Unrealized Appreciation (Depreciation)		(48,743,422	)		(259,742,997	)		(42,625,001	)		(26,946,700	)		(21,201,498	)

Net Gain (Loss) on Investment		(38,495,412	)		(228,851,966	)		(11,577,568	)		8,355,804			4,567,624
Net Increase (Decrease) in Net Assets Resulting from Operations		(34,805,618	)		(221,581,107	)		(15,785,557	)		6,164,393			2,939,640

Increase (Decrease) in Net Assets from Contract Transactions		(65,065,173	)		(336,695,914	)		(36,532,420	)		1,930,545			14,089,524

Total Increase (Decrease) in Net Assets		(99,870,791	)		(558,277,021	)		(52,317,977	)		8,094,938			17,029,164

Net Assets as of December 31, 2018:	$	671,687,849		$	2,384,647,311		$	382,090,653		$	134,713,516		$	108,734,790

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Multi- Managed Balanced Initial Class			TA Multi-Managed Balanced Service Class			TA Multi-Manager Alternative Strategies Service Class			TA PIMCO Tactical - Balanced Service Class			TA PIMCO Tactical - Conservative Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	79,027,923		$	904,843,654		$	1,601,107		$	610,151,653		$	273,382,211

Investment Income:
Reinvested Dividends		744,399			9,259,180			21,232			1,848,041			3,659,724
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,258,804			15,664,154			17,970			8,424,648			3,848,852

Net Investment Income (Loss)		(514,405	)		(6,404,974	)		3,262			(6,576,607	)		(189,128	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		973,628			13,957,230			—			30,295,029			8,938,941
Realized Gain (Loss) on Investments		1,182,672			12,210,046			(16,421	)		8,096,077			3,384,909

Net Realized Capital Gains (Losses) on Investments		2,156,300			26,167,276			(16,421	)		38,391,106			12,323,850
Net Change in Unrealized Appreciation (Depreciation)		8,510,914			114,383,168			71,720			30,599,474			12,108,531

Net Gain (Loss) on Investment		10,667,214			140,550,444			55,299			68,990,580			24,432,381
Net Increase (Decrease) in Net Assets Resulting from Operations		10,152,809			134,145,470			58,561			62,413,973			24,243,253

Increase (Decrease) in Net Assets from Contract Transactions		2,507,773			245,186,153			33,731			(43,777,330	)		(14,759,464	)

Total Increase (Decrease) in Net Assets		12,660,582			379,331,623			92,292			18,636,643			9,483,789

Net Assets as of December 31, 2017:	$	91,688,505		$	1,284,175,277		$	1,693,399		$	628,788,296		$	282,866,000

Investment Income:
Reinvested Dividends		1,305,412			14,847,460			22,797			18,658,999			8,809,747
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,343,982			16,189,595			28,603			7,944,792			3,617,385

Net Investment Income (Loss)		(38,570	)		(1,342,135	)		(5,806	)		10,714,207			5,192,362
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		3,575,667			48,714,193			—			42,700,937			16,690,186
Realized Gain (Loss) on Investments		1,675,709			20,819,384			(23,217	)		4,423,636			778,339

Net Realized Capital Gains (Losses) on Investments		5,251,376			69,533,577			(23,217	)		47,124,573			17,468,525
Net Change in Unrealized Appreciation (Depreciation)		(9,700,319	)		(128,885,983	)		(139,444	)		(104,778,512	)		(39,474,660	)

Net Gain (Loss) on Investment		(4,448,943	)		(59,352,406	)		(162,661	)		(57,653,939	)		(22,006,135	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(4,487,513	)		(60,694,541	)		(168,467	)		(46,939,732	)		(16,813,773	)

Increase (Decrease) in Net Assets from Contract Transactions		(3,108,542	)		(109,676,702	)		1,286,925			(67,325,248	)		(28,255,348	)

Total Increase (Decrease) in Net Assets		(7,596,055	)		(170,371,243	)		1,118,458			(114,264,980	)		(45,069,121	)

Net Assets as of December 31, 2018:	$	84,092,450		$	1,113,804,034		$	2,811,857		$	514,523,316		$	237,796,879

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA PIMCO Tactical - Growth Service Class			TA PIMCO Total Return Initial Class			TA PIMCO Total Return Service Class			TA PineBridge Inflation Opportunities Service Class			TA ProFunds UltraBear Service Class (OAM)
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	334,243,979		$	181,319,170		$	826,905,164		$	175,347,485		$	33,857,197

Investment Income:
Reinvested Dividends		1,426,772			—			—			409,073			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		4,880,053			2,650,837			11,179,030			2,496,404			308,191

Net Investment Income (Loss)		(3,453,281	)		(2,650,837	)		(11,179,030	)		(2,087,331	)		(308,191	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		11,227,202			1,739,756			8,083,194			—			—
Realized Gain (Loss) on Investments		3,507,169			(645,814	)		(4,447,760	)		(1,199,637	)		(10,141,176	)

Net Realized Capital Gains (Losses) on Investments		14,734,371			1,093,942			3,635,434			(1,199,637	)		(10,141,176	)
Net Change in Unrealized Appreciation (Depreciation)		32,763,564			7,470,827			33,575,130			6,408,601			1,737,277

Net Gain (Loss) on Investment		47,497,935			8,564,769			37,210,564			5,208,964			(8,403,899	)
Net Increase (Decrease) in Net Assets Resulting from Operations		44,044,654			5,913,932			26,031,534			3,121,633			(8,712,090	)

Increase (Decrease) in Net Assets from Contract Transactions		(4,770,373	)		(12,580,655	)		(49,326,802	)		(4,596,288	)		(11,968,713	)

Total Increase (Decrease) in Net Assets		39,274,281			(6,666,723	)		(23,295,268	)		(1,474,655	)		(20,680,803	)

Net Assets as of December 31, 2017:	$	373,518,260		$	174,652,447		$	803,609,896		$	173,872,830		$	13,176,394

Investment Income:
Reinvested Dividends		10,869,857			4,236,479			18,104,995			2,751,819			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		4,918,397			2,470,480			10,331,170			2,263,201			244,312

Net Investment Income (Loss)		5,951,460			1,765,999			7,773,825			488,618			(244,312	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		35,212,761			835,303			3,972,488			—			—
Realized Gain (Loss) on Investments		2,226,561			(1,280,843	)		(6,767,030	)		(1,336,184	)		(6,885,074	)

Net Realized Capital Gains (Losses) on Investments		37,439,322			(445,540	)		(2,794,542	)		(1,336,184	)		(6,885,074	)
Net Change in Unrealized Appreciation (Depreciation)		(74,559,617	)		(5,075,373	)		(24,147,025	)		(3,999,746	)		8,531,109

Net Gain (Loss) on Investment		(37,120,295	)		(5,520,913	)		(26,941,567	)		(5,335,930	)		1,646,035
Net Increase (Decrease) in Net Assets Resulting from Operations		(31,168,835	)		(3,754,914	)		(19,167,742	)		(4,847,312	)		1,401,723

Increase (Decrease) in Net Assets from Contract Transactions		(31,289,447	)		(13,029,812	)		(66,682,839	)		(14,530,388	)		20,446,889

Total Increase (Decrease) in Net Assets		(62,458,282	)		(16,784,726	)		(85,850,581	)		(19,377,700	)		21,848,612

Net Assets as of December 31, 2018:	$	311,059,978		$	157,867,721		$	717,759,315		$	154,495,130		$	35,025,006

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA QS Investors Active Asset Allocation - Conservative Service Class			TA QS Investors Active Asset Allocation - Moderate Service Class			TA QS Investors Active Asset Allocation - Moderate Growth Service Class			TA Small/Mid Cap Value Initial Class Subaccount
	Subaccount			Subaccount			Subaccount			TA Small/Mid Cap Value Initial Class Subaccount
Net Assets as of December 31, 2016:	$	425,136,568		$	1,448,789,251		$	591,439,085		$	129,843,084

Investment Income:
Reinvested Dividends		7,147,645			22,694,448			7,869,723			1,486,161
Investment Expense:
Mortality and Expense Risk and Administrative Charges		5,391,064			19,125,329			8,268,246			1,870,446

Net Investment Income (Loss)		1,756,581			3,569,119			(398,523	)		(384,285	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			11,573,916
Realized Gain (Loss) on Investments		1,208,893			6,448,187			(368,175	)		2,493,679

Net Realized Capital Gains (Losses) on Investments		1,208,893			6,448,187			(368,175	)		14,067,595
Net Change in Unrealized Appreciation (Depreciation)		37,725,998			181,700,925			106,142,677			3,570,457

Net Gain (Loss) on Investment		38,934,891			188,149,112			105,774,502			17,638,052
Net Increase (Decrease) in Net Assets Resulting from Operations		40,691,472			191,718,231			105,375,979			17,253,767

Increase (Decrease) in Net Assets from Contract Transactions		(52,464,585	)		(124,850,225	)		(46,263,184	)		(11,705,677	)

Total Increase (Decrease) in Net Assets		(11,773,113	)		66,868,006			59,112,795			5,548,090

Net Assets as of December 31, 2017:	$	413,363,455		$	1,515,657,257		$	650,551,880		$	135,391,174

Investment Income:
Reinvested Dividends		6,104,859			20,853,705			8,032,569			1,143,025
Investment Expense:
Mortality and Expense Risk and Administrative Charges		4,972,206			18,953,884			8,258,517			1,844,632

Net Investment Income (Loss)		1,132,653			1,899,821			(225,948	)		(701,607	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			12,368,132
Realized Gain (Loss) on Investments		2,479,755			12,727,873			5,561,064			3,015,730

Net Realized Capital Gains (Losses) on Investments		2,479,755			12,727,873			5,561,064			15,383,862
Net Change in Unrealized Appreciation (Depreciation)		(19,615,118	)		(92,827,700	)		(48,910,125	)		(30,008,418	)

Net Gain (Loss) on Investment		(17,135,363	)		(80,099,827	)		(43,349,061	)		(14,624,556	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(16,002,710	)		(78,200,006	)		(43,575,009	)		(15,326,163	)

Increase (Decrease) in Net Assets from Contract Transactions		(49,395,080	)		(104,446,228	)		(66,596,758	)		(14,820,301	)

Total Increase (Decrease) in Net Assets		(65,397,790	)		(182,646,234	)		(110,171,767	)		(30,146,464	)

Net Assets as of December 31, 2018:	$	347,965,665		$	1,333,011,023		$	540,380,113		$	105,244,710

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Small/ Mid Cap Value Service Class			TA T. Rowe Price Small Cap Initial Class			TA T. Rowe Price Small Cap Service Class			TA Torray Concentrated Growth Initial Class			TA Torray Concentrated Growth Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	111,710,832		$	112,290,331		$	191,512,774		$	141,507,483		$	32,531,628

Investment Income:
Reinvested Dividends		1,178,729			—			—			577,343			54,116
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,760,282			1,779,974			3,132,675			2,197,525			546,036

Net Investment Income (Loss)		(581,553	)		(1,779,974	)		(3,132,675	)		(1,620,182	)		(491,920	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		11,124,252			7,432,884			14,022,111			2,675,509			624,984
Realized Gain (Loss) on Investments		315,227			6,290,678			5,108,563			8,962,896			395,865

Net Realized Capital Gains (Losses) on Investments		11,439,479			13,723,562			19,130,674			11,638,405			1,020,849
Net Change in Unrealized Appreciation (Depreciation)		4,668,926			10,921,683			24,084,619			21,049,107			6,903,426

Net Gain (Loss) on Investment		16,108,405			24,645,245			43,215,293			32,687,512			7,924,275
Net Increase (Decrease) in Net Assets Resulting from Operations		15,526,852			22,865,271			40,082,618			31,067,330			7,432,355

Increase (Decrease) in Net Assets from Contract Transactions		2,301,034			(5,371,310	)		10,397,882			(15,373,940	)		802,377

Total Increase (Decrease) in Net Assets		17,827,886			17,493,961			50,480,500			15,693,390			8,234,732

Net Assets as of December 31, 2017:	$	129,538,718		$	129,784,292		$	241,993,274		$	157,200,873		$	40,766,360

Investment Income:
Reinvested Dividends		851,714			—			—			328,558			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,795,629			1,979,112			3,560,876			2,246,678			558,873

Net Investment Income (Loss)		(943,915	)		(1,979,112	)		(3,560,876	)		(1,918,120	)		(558,873	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		12,606,664			6,972,336			13,658,168			7,329,614			1,802,233
Realized Gain (Loss) on Investments		(966,116	)		8,519,912			7,137,439			16,253,335			1,284,695

Net Realized Capital Gains (Losses) on Investments		11,640,548			15,492,248			20,795,607			23,582,949			3,086,928
Net Change in Unrealized Appreciation (Depreciation)		(26,513,092	)		(23,943,547	)		(37,549,408	)		(28,001,474	)		(4,161,181	)

Net Gain (Loss) on Investment		(14,872,544	)		(8,451,299	)		(16,753,801	)		(4,418,525	)		(1,074,253	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(15,816,459	)		(10,430,411	)		(20,314,677	)		(6,336,645	)		(1,633,126	)

Increase (Decrease) in Net Assets from Contract Transactions		(8,341,474	)		(5,174,693	)		(11,002,015	)		(19,696,532	)		(7,163,896	)

Total Increase (Decrease) in Net Assets		(24,157,933	)		(15,605,104	)		(31,316,692	)		(26,033,177	)		(8,797,022	)

Net Assets as of December 31, 2018:	$	105,380,785		$	114,179,188		$	210,676,582		$	131,167,696		$	31,969,338

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA TS&W International Equity Initial Class			TA TS&W International Equity Service Class			TA U.S. Equity Index Service Class			TA WMC US Growth Initial Class			TA WMC US Growth Service Class
	Subaccount			Subaccount			Subaccount⁽¹⁾			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	71,904,972		$	34,110,738		$	—		$	236,978,354		$	98,349,420

Investment Income:
Reinvested Dividends		1,734,650			784,746			—			1,098,653			236,857
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,143,632			556,986			68,012			3,767,745			1,589,738

Net Investment Income (Loss)		591,018			227,760			(68,012	)		(2,669,092	)		(1,352,881	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			6,217,116			2,757,270
Realized Gain (Loss) on Investments		1,357,784			110,455			62,482			5,547,134			(314,730	)

Net Realized Capital Gains (Losses) on Investments		1,357,784			110,455			62,482			11,764,250			2,442,540
Net Change in Unrealized Appreciation (Depreciation)		13,032,548			6,888,443			1,001,819			53,182,305			25,262,181

Net Gain (Loss) on Investment		14,390,332			6,998,898			1,064,301			64,946,555			27,704,721
Net Increase (Decrease) in Net Assets Resulting from Operations		14,981,350			7,226,658			996,289			62,277,463			26,351,840

Increase (Decrease) in Net Assets from Contract Transactions		(1,350,943	)		2,239,378			17,589,331			(22,352,084	)		(1,145,506	)

Total Increase (Decrease) in Net Assets		13,630,407			9,466,036			18,585,620			39,925,379			25,206,334

Net Assets as of December 31, 2017:	$	85,535,379		$	43,576,774		$	18,585,620		$	276,903,733		$	123,555,754

Investment Income:
Reinvested Dividends		2,061,301			928,154			85,169			1,365,570			352,126
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,245,467			602,413			477,235			4,234,174			1,813,101

Net Investment Income (Loss)		815,834			325,741			(392,066	)		(2,868,604	)		(1,460,975	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			55,027			23,564,629			10,812,480
Realized Gain (Loss) on Investments		2,003,257			615,171			421,454			15,423,963			1,503,026

Net Realized Capital Gains (Losses) on Investments		2,003,257			615,171			476,481			38,988,592			12,315,506
Net Change in Unrealized Appreciation (Depreciation)		(17,678,671	)		(8,331,581	)		(4,011,019	)		(37,477,785	)		(11,992,484	)

Net Gain (Loss) on Investment		(15,675,414	)		(7,716,410	)		(3,534,538	)		1,510,807			323,022
Net Increase (Decrease) in Net Assets Resulting from Operations		(14,859,580	)		(7,390,669	)		(3,926,604	)		(1,357,797	)		(1,137,953	)

Increase (Decrease) in Net Assets from Contract Transactions		3,070,398			(202,308	)		32,250,789			(25,977,814	)		(9,326,384	)

Total Increase (Decrease) in Net Assets		(11,789,182	)		(7,592,977	)		28,324,185			(27,335,611	)		(10,464,337	)

Net Assets as of December 31, 2018:	$	73,746,197		$	35,983,797		$	46,909,805		$	249,568,122		$	113,091,417

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Vanguard^® Equity Index			Vanguard^® International			Vanguard^® Mid-Cap Index			Vanguard^® Real Estate Index			Vanguard^® Short-Term Investment Grade
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	1,920,746		$	1,229,545		$	845,838		$	358,742		$	2,717,920

Investment Income:
Reinvested Dividends		49,584			16,692			11,727			9,801			59,101
Investment Expense:
Mortality and Expense Risk and Administrative Charges		22,568			12,920			7,974			2,958			19,615

Net Investment Income (Loss)		27,016			3,772			3,753			6,843			39,486
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		84,690			10,210			42,865			17,478			5,098
Realized Gain (Loss) on Investments		73,047			81,257			14,246			3,960			(3,424	)

Net Realized Capital Gains (Losses) on Investments		157,737			91,467			57,111			21,438			1,674
Net Change in Unrealized Appreciation (Depreciation)		404,643			486,596			133,212			(12,168	)		2,098

Net Gain (Loss) on Investment		562,380			578,063			190,323			9,270			3,772
Net Increase (Decrease) in Net Assets Resulting from Operations		589,396			581,835			194,076			16,113			43,258

Increase (Decrease) in Net Assets from Contract Transactions		1,278,489			499,378			355,511			84,428			198,635

Total Increase (Decrease) in Net Assets		1,867,885			1,081,213			549,587			100,541			241,893

Net Assets as of December 31, 2017:	$	3,788,631		$	2,310,758		$	1,395,425		$	459,283		$	2,959,813

Investment Income:
Reinvested Dividends		63,247			18,303			17,685			13,743			51,894
Investment Expense:
Mortality and Expense Risk and Administrative Charges		31,467			17,470			11,604			3,357			20,334

Net Investment Income (Loss)		31,780			833			6,081			10,386			31,560
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		61,565			61,255			71,906			16,852			—
Realized Gain (Loss) on Investments		96,540			131,519			52,890			(3,052	)		(6,334	)

Net Realized Capital Gains (Losses) on Investments		158,105			192,774			124,796			13,800			(6,334	)
Net Change in Unrealized Appreciation (Depreciation)		(443,988	)		(449,020	)		(281,070	)		(53,918	)		(13,811	)

Net Gain (Loss) on Investment		(285,883	)		(256,246	)		(156,274	)		(40,118	)		(20,145	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(254,103	)		(255,413	)		(150,193	)		(29,732	)		11,415

Increase (Decrease) in Net Assets from Contract Transactions		540,770			(195,856	)		111,492			22,913			57,039

Total Increase (Decrease) in Net Assets		286,667			(451,269	)		(38,701	)		(6,819	)		68,454

Net Assets as of December 31, 2018:	$	4,075,298		$	1,859,489		$	1,356,724		$	452,464		$	3,028,267

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Vanguard^® Total Bond Market Index			Voya Global Perspectives Class S Shares			Voya Large Cap Value Class S Shares			Voya Strategic Allocation Conservative Class S Shares		Voya Strategic Allocation Moderate Class S Shares
	Subaccount			Subaccount			Subaccount			Subaccount		Subaccount
Net Assets as of December 31, 2016:	$	1,483,525		$	16,121		$	1,006		$	—	$	—

Investment Income:
Reinvested Dividends		41,539			468			23			—		—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		12,506			226			14			—		—

Net Investment Income (Loss)		29,033			242			9			—		—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		5,592			—			—			—		—
Realized Gain (Loss) on Investments		(7,828	)		26			8			—		—

Net Realized Capital Gains (Losses) on Investments		(2,236	)		26			8			—		—
Net Change in Unrealized Appreciation (Depreciation)		20,009			1,911			98			—		—

Net Gain (Loss) on Investment		17,773			1,937			106			—		—
Net Increase (Decrease) in Net Assets Resulting from Operations		46,806			2,179			115			—		—

Increase (Decrease) in Net Assets from Contract Transactions		569,308			1,338			(27	)		—		—

Total Increase (Decrease) in Net Assets		616,114			3,517			88			—		—

Net Assets as of December 31, 2017:	$	2,099,639		$	19,638		$	1,094		$	—	$	—

Investment Income:
Reinvested Dividends		50,257			519			20			—		—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		15,774			255			14			—		—

Net Investment Income (Loss)		34,483			264			6			—		—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		4,254			229			121			—		—
Realized Gain (Loss) on Investments		(8,784	)		30			6			—		—

Net Realized Capital Gains (Losses) on Investments		(4,530	)		259			127			—		—
Net Change in Unrealized Appreciation (Depreciation)		(46,544	)		(2,311	)		(233	)		—		—

Net Gain (Loss) on Investment		(51,074	)		(2,052	)		(106	)		—		—
Net Increase (Decrease) in Net Assets Resulting from Operations		(16,591	)		(1,788	)		(100	)		—		—

Increase (Decrease) in Net Assets from Contract Transactions		115,275			1,367			14			—		—

Total Increase (Decrease) in Net Assets		98,684			(421	)		(86	)		—		—

Net Assets as of December 31, 2018:	$	2,198,323		$	19,217		$	1,008		$	—	$	—

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Wanger International			Wanger USA
	Subaccount			Subaccount
Net Assets as of December 31, 2016:	$	308,283		$	177,312

Investment Income:
Reinvested Dividends		3,938			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,534			603

Net Investment Income (Loss)		2,404			(603	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,265			30,099
Realized Gain (Loss) on Investments		(13,907	)		(52,534	)

Net Realized Capital Gains (Losses) on Investments		(11,642	)		(22,435	)
Net Change in Unrealized Appreciation (Depreciation)		97,410			35,562

Net Gain (Loss) on Investment		85,768			13,127
Net Increase (Decrease) in Net Assets Resulting from Operations		88,172			12,524

Increase (Decrease) in Net Assets from Contract Transactions		(25,811	)		(189,836	)

Total Increase (Decrease) in Net Assets		62,361			(177,312	)

Net Assets as of December 31, 2017:	$	370,644		$	—

Investment Income:
Reinvested Dividends		7,207			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,713			—

Net Investment Income (Loss)		5,494			—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		40,485			—
Realized Gain (Loss) on Investments		(14,884	)		—

Net Realized Capital Gains (Losses) on Investments		25,601			—
Net Change in Unrealized Appreciation (Depreciation)		(95,017	)		—

Net Gain (Loss) on Investment		(69,416	)		—
Net Increase (Decrease) in Net Assets Resulting from Operations		(63,922	)		—

Increase (Decrease) in Net Assets from Contract Transactions		(44,107	)		—

Total Increase (Decrease) in Net Assets		(108,029	)		—

Net Assets as of December 31, 2018:	$	262,615		$	—

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

1. 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. TLIC and the Separate Account are regulated by the Securities and Exchange Commission. The assets and liabilities of the Separate Account are clearly identified and distinguished from TLIC’s other assets and liabilities. The Separate Account consists of 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 Variable Annuity Series, MEMBERS^® Variable Annuity Series, Partners Variable Annuity Series, Transamerica Landmark^SM Variable Annuity, MEMBERS^® Landmark^SM Variable Annuity, Transamerica Freedom^SM Variable Annuity, MEMBERS^® Freedom^SM Variable Annuity, Transamerica Advisor Elite II, Transamerica Income Elite^SM II, Transamerica Axiom^SM II, Transamerica Principium^SM III, Transamerica Retirement Income Plus, Transamerica Variable Annuity O-Share, Transamerica ABC Variable Annuity Series, Transamerica 123 Variable Annuity, Transamerica Extra^SM Variable Annuity, MEMBERS^® Extra^SM Variable Annuity, Transamerica LibertyS^SM Variable Annuity, MEMBERS^® Liberty^SM Variable Annuity, Transamerica Advisor Elite^SM Variable Annuity, Income Elite^SM Variable Annuity, Transamerica Axiom^SM Variable Annuity, Transamerica Principium^SM II Variable Annuity, Transamerica I-Share Variable Annuity, and Transamerica Inspire^SM Variable Annuity.

The TA ProFunds UltraBear Service Class (OAM) is included in the subaccount listing only to facilitate a contract owner purchase option.

Subaccount Investment by Mutual Fund:


Subaccount		Mutual Fund
AB Variable Products Series Fund, Inc.		AB Variable Products Series Fund, Inc.
AB Balanced Wealth Strategy Class B Shares		AB Balanced Wealth Strategy Portfolio Class B Shares
AB Growth and Income Class B Shares		AB Growth and Income Portfolio Class B Shares
AB Large Cap Growth Class B Shares		AB Large Cap Growth Portfolio Class B Shares
American Funds Insurance Series^®		American Funds Insurance Series^®
American Funds - Asset Allocation Class 2 Shares		American Funds - Asset Allocation Fund Class 2 Shares
American Funds - Bond Class 2 Shares		American Funds - Bond Fund Class 2 Shares
American Funds - Growth Class 2 Shares		American Funds - Growth Fund Class 2 Shares
American Funds - Growth-Income Class 2 Shares		American Funds - Growth-Income Fund Class 2 Shares
American Funds - International Class 2 Shares		American Funds - International Fund Class 2 Shares
BlackRock Variable Series Funds, Inc.		BlackRock Variable Series Funds, Inc.
BlackRock Basic Value V.I. Class I Shares		BlackRock Basic Value V.I. Fund Class I Shares
BlackRock Global Allocation V.I. Class I Shares		BlackRock Global Allocation V.I. Fund Class I Shares
BlackRock High Yield V.I. Class I Shares		BlackRock High Yield V.I. Fund Class I Shares
Fidelity^® Variable Insurance Products Fund		Fidelity^® Variable Insurance Products Fund
Fidelity^® VIP Balanced Service Class 2		Fidelity^® VIP Balanced Service Portfolio Class 2
Fidelity^® VIP Contrafund^® Initial Class		Fidelity^® VIP Contrafund^® Portfolio Initial Class
Fidelity^® VIP Contrafund^® Service Class 2		Fidelity^® VIP Contrafund^® Portfolio Service Class 2
Fidelity^® VIP Equity-Income Initial Class		Fidelity^® VIP Equity-Income Portfolio Initial Class
Fidelity^® VIP Equity-Income Service Class 2		Fidelity^® VIP Equity-Income Portfolio Service Class 2
Fidelity^® VIP Growth Initial Class		Fidelity^® VIP Growth Portfolio Initial Class
Fidelity^® VIP Growth Service Class 2		Fidelity^® VIP Growth Portfolio Service Class 2

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

1. Organization (continued)

Subaccount Investment by Mutual Fund:


Subaccount		Mutual Fund
Fidelity^® Variable Insurance Products Fund		Fidelity^® Variable Insurance Products Fund
Fidelity^® VIP Growth Opportunities Service Class 2		Fidelity^® VIP Growth Opportunities Portfolio Service Class 2
Fidelity^® VIP Mid Cap Initial Class		Fidelity^® VIP Mid Cap Portfolio Initial Class
Fidelity^® VIP Mid Cap Service Class 2		Fidelity^® VIP Mid Cap Portfolio Service Class 2
Fidelity^® VIP Value Strategies Initial Class		Fidelity^® VIP Value Strategies Portfolio Initial Class
Fidelity^® VIP Value Strategies Service Class 2		Fidelity^® VIP Value Strategies Portfolio Service Class 2
Franklin Templeton Variable Insurance Products Trust		Franklin Templeton Variable Insurance Products Trust
Franklin Founding Funds Allocation Class 4 Shares		Franklin Founding Funds Allocation Fund Class 4 Shares
Franklin Income Class 2 Shares		Franklin Income Class Fund 2 Shares
Franklin Mutual Shares Class 2 Shares		Franklin Mutual Shares Fund Class 2 Shares
Franklin Templeton Foreign Class 2 Shares		Franklin Templeton Foreign Fund Class 2 Shares
AIM Variable Insurance Funds (Invesco Variable Insurance Funds)		AIM Variable Insurance Funds (Invesco Variable Insurance Funds)
Invesco V.I. American Franchise Series II Shares		Invesco V.I. American Franchise Fund Series II Shares
Janus Aspen Series		Janus Aspen Series
Janus Henderson - Enterprise Service Shares		Janus Henderson - Enterprise Portfolio Service Shares
Janus Henderson - Global Research Service Shares		Janus Henderson - Global Research Portfolio Service Shares
Janus Henderson - Mid Cap Value Service Shares		Janus Henderson - Mid Cap Value Portfolio Service Shares
MFS^® Variable Insurance Trust		MFS^® Variable Insurance Trust
MFS^® New Discovery Service Class		MFS^® New Discovery Series Service Class
MFS^® Total Return Service Class		MFS^® Total Return Series Service Class
Nationwide Variable Insurance Trust		Nationwide Variable Insurance Trust
NVIT Emerging Markets Class D Shares		NVIT Emerging Markets Fund Class D Shares
Mutual Fund and Variable Insurance Trust		Mutual Fund and Variable Insurance Trust
Rational Insider Buying VA		Rational Insider Buying VA Fund
Rational Trend Aggregation VA		Rational Trend Aggregation VA Fund
State Street Variable Insurance Series Funds, Inc.		State Street Variable Insurance Series Funds, Inc.
State Street Total Return V.I.S. Class 3 Shares		State Street Total Return V.I.S. Fund Class 3 Shares
Transamerica Series Trust		Transamerica Series Trust
TA 60/40 Allocation Service Class		Transamerica 60/40 Allocation VP Service Class
TA Aegon High Yield Bond Initial Class		Transamerica Aegon High Yield Bond VP Initial Class
TA Aegon High Yield Bond Service Class		Transamerica Aegon High Yield Bond VP Service Class
TA Aegon U.S. Government Securities Initial Class		Transamerica Aegon U.S. Government Securities VP Initial Class
TA Aegon U.S. Government Securities Service Class		Transamerica Aegon U.S. Government Securities VP Service Class
TA American Funds Managed Risk - Balanced Service Class		Transamerica American Funds Managed Risk - Balanced VP Service Class
TA Barrow Hanley Dividend Focused Initial Class		Transamerica Barrow Hanley Dividend Focused VP Initial Class
TA Barrow Hanley Dividend Focused Service Class		Transamerica Barrow Hanley Dividend Focused VP Service Class
TA BlackRock Equity Smart Beta 100 Service Class		Transamerica BlackRock Equity Smart Beta 100 VP Service Class
TA BlackRock Global Allocation Service Class		Transamerica BlackRock Global Allocation VP Service Class
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		Transamerica BlackRock Global Allocation Managed Risk - Balanced VP Service Class
TA BlackRock Global Allocation Managed Risk - Growth Service Class		Transamerica BlackRock Global Allocation Managed Risk - Growth VP Service Class
TA BlackRock Global Real Estate Securities Initial Class		Transamerica BlackRock Global Real Estate Securities VP Initial Class

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

1. Organization (continued)

Subaccount Investment by Mutual Fund:


Subaccount		Mutual Fund
Transamerica Series Trust		Transamerica Series Trust
TA BlackRock Global Real Estate Securities Service Class		Transamerica BlackRock Global Real Estate Securities VP Service Class
TA BlackRock Government Money Market Initial Class		Transamerica BlackRock Government Money Market VP Initial Class
TA BlackRock Government Money Market Service Class		Transamerica BlackRock Government Money Market VP Service Class
TA BlackRock Smart Beta 40 Initial Class		Transamerica BlackRock Smart Beta 40 VP Initial Class
TA BlackRock Smart Beta 40 Service Class		Transamerica BlackRock Smart Beta 40 VP Service Class
TA BlackRock Smart Beta 50 Service Class		Transamerica BlackRock Smart Beta 50 VP Service Class
TA BlackRock Smart Beta 75 Service Class		Transamerica BlackRock Smart Beta 75 VP Service Class
TA BlackRock Tactical Allocation Service Class		Transamerica BlackRock Tactical Allocation VP Service Class
TA Greystone International Growth Initial Class		Transamerica Greystone International Growth VP Initial Class
TA Greystone International Growth Service Class		Transamerica Greystone International Growth VP Service Class
TA International Equity Index Service Class		Transamerica International Equity Index VP Service Class
TA Janus Balanced Service Class		Transamerica Janus Balanced VP Service Class
TA Janus Mid-Cap Growth Initial Class		Transamerica Janus Mid-Cap Growth VP Initial Class
TA Janus Mid-Cap Growth Service Class		Transamerica Janus Mid-Cap Growth VP Service Class
TA Jennison Growth Initial Class		Transamerica Jennison Growth VP Initial Class
TA Jennison Growth Service Class		Transamerica Jennison Growth VP Service Class
TA JPMorgan Asset Allocation - Conservative Initial Class		Transamerica JPMorgan Asset Allocation - Conservative VP Initial Class
TA JPMorgan Asset Allocation - Conservative Service Class		Transamerica JPMorgan Asset Allocation - Conservative VP Service Class
TA JPMorgan Asset Allocation - Growth Initial Class		Transamerica JPMorgan Asset Allocation - Growth VP Initial Class
TA JPMorgan Asset Allocation - Growth Service Class		Transamerica JPMorgan Asset Allocation - Growth VP Service Class
TA JPMorgan Asset Allocation - Moderate Initial Class		Transamerica JPMorgan Asset Allocation - Moderate VP Initial Class
TA JPMorgan Asset Allocation - Moderate Service Class		Transamerica JPMorgan Asset Allocation - Moderate VP Service Class
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		Transamerica JPMorgan Asset Allocation - Moderate Growth VP Initial Class
TA JPMorgan Asset Allocation - Moderate Growth Service Class		Transamerica JPMorgan Asset Allocation - Moderate Growth VP Service Class
TA JPMorgan Core Bond Service Class		Transamerica JPMorgan Core Bond VP Service Class
TA JPMorgan Enhanced Index Initial Class		Transamerica JPMorgan Enhanced Index VP Initial Class
TA JPMorgan Enhanced Index Service Class		Transamerica JPMorgan Enhanced Index VP Service Class
TA JPMorgan International Moderate Growth Initial Class		Transamerica JPMorgan International Moderate Growth VP Initial Class
TA JPMorgan International Moderate Growth Service Class		Transamerica JPMorgan International Moderate Growth VP Service Class
TA JPMorgan Mid Cap Value Service Class		Transamerica JPMorgan Mid Cap Value VP Service Class
TA JPMorgan Tactical Allocation Service Class		Transamerica JPMorgan Tactical Allocation VP Service Class
TA Legg Mason Dynamic Allocation - Balanced Service Class		Transamerica Legg Mason Dynamic Allocation - Balanced VP Service Class

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

1. Organization (continued)

Subaccount Investment by Mutual Fund:


Subaccount		Mutual Fund
TA Legg Mason Dynamic Allocation - Growth Service Class		Transamerica Legg Mason Dynamic Allocation - Growth VP Service Class
TA Levin Large Cap Value Service Class		Transamerica Levin Large Cap Value VP Service Class
TA Madison Balanced Allocation Service Class		Transamerica Madison Balanced Allocation VP Service Class
TA Madison Conservative Allocation Service Class		Transamerica Madison Conservative Allocation VP Service Class
TA Madison Diversified Income Service Class		Transamerica Madison Diversified Income VP Service Class
TA Managed Risk - Balanced ETF Service Class		Transamerica Managed Risk - Balanced ETF VP Service Class
TA Managed Risk - Conservative ETF Service Class		Transamerica Managed Risk - Conservative ETF VP Service Class
TA Managed Risk - Growth ETF Service Class		Transamerica Managed Risk - Growth ETF VP Service Class
TA Market Participation Strategy Service Class		Transamerica Market Participation Strategy VP Service Class
TA Morgan Stanley Capital Growth Initial Class		Transamerica Morgan Stanley Capital Growth VP Initial Class
TA Morgan Stanley Capital Growth Service Class		Transamerica Morgan Stanley Capital Growth VP Service Class
Transamerica Series Trust		Transamerica Series Trust
TA Multi-Managed Balanced Initial Class		Transamerica Multi-Managed Balanced VP Initial Class
TA Multi-Managed Balanced Service Class		Transamerica Multi-Managed Balanced VP Service Class
TA Multi-Manager Alternative Strategies Service Class		Transamerica Multi-Manager Alternative Strategies VP Service Class
TA PIMCO Tactical - Balanced Service Class		Transamerica PIMCO Tactical - Balanced VP Service Class
TA PIMCO Tactical - Conservative Service Class		Transamerica PIMCO Tactical - Conservative VP Service Class
TA PIMCO Tactical - Growth Service Class		Transamerica PIMCO Tactical - Growth VP Service Class
TA PIMCO Total Return Initial Class		Transamerica PIMCO Total Return VP Initial Class
TA PIMCO Total Return Service Class		Transamerica PIMCO Total Return VP Service Class
TA PineBridge Inflation Opportunities Service Class		Transamerica PineBridge Inflation Opportunities VP Service Class
TA ProFunds UltraBear Service Class (OAM)		Transamerica ProFunds UltraBear VP Service Class (OAM)
TA QS Investors Active Asset Allocation - Conservative Service Class		Transamerica QS Investors Active Asset Allocation - Conservative VP Service Class
TA QS Investors Active Asset Allocation - Moderate Service Class		Transamerica QS Investors Active Asset Allocation - Moderate VP Service Class
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		Transamerica QS Investors Active Asset Allocation - Moderate Growth VP Service Class
TA Small/Mid Cap Value Initial Class		Transamerica Small/Mid Cap Value VP Initial Class
TA Small/Mid Cap Value Service Class		Transamerica Small/Mid Cap Value VP Service Class
TA T. Rowe Price Small Cap Initial Class		Transamerica T. Rowe Price Small Cap VP Initial Class
TA T. Rowe Price Small Cap Service Class		Transamerica T. Rowe Price Small Cap VP Service Class
TA Torray Concentrated Growth Initial Class		Transamerica Torray Concentrated Growth VP Initial Class
TA Torray Concentrated Growth Service Class		Transamerica Torray Concentrated Growth VP Service Class
TA TS&W International Equity Initial Class		Transamerica TS&W International Equity VP Initial Class
TA TS&W International Equity Service Class		Transamerica TS&W International Equity VP Service Class
TA U.S. Equity Index Service Class		Transamerica U.S. Equity Index VP Service Class
TA WMC US Growth Initial Class		Transamerica WMC US Growth VP Initial Class
TA WMC US Growth Service Class		Transamerica WMC US Growth VP Service Class

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

1. Organization (continued)

Subaccount Investment by Mutual Fund:


Subaccount		Mutual Fund
Vanguard^® Variable Insurance Fund		Vanguard^® Variable Insurance Fund
Vanguard^® Equity Index		Vanguard^® Equity Index Portfolio
Vanguard^® International		Vanguard^® International Portfolio
Vanguard^® Mid-Cap Index		Vanguard^® Mid-Cap Index Portfolio
Vanguard^® Real Estate Index		Vanguard^® Real Estate Index Portfolio
Vanguard^® Short-Term Investment Grade		Vanguard^® Short-Term Investment Grade Portfolio
Vanguard^® Total Bond Market Index		Vanguard^® Total Bond Market Index Portfolio
Voya Investors Trust		Voya Investors Trust
Voya Global Perspectives Class S Shares		Voya Global Perspectives Portfolio Class S Shares
Voya Large Cap Value Class S Shares		Voya Large Cap Value Portfolio Class S Shares
Voya Strategic Allocation Portfolios, Inc.		Voya Strategic Allocation Portfolios, Inc.
Voya Strategic Allocation Conservative Class S Shares		Voya Strategic Allocation Conservative Portfolio Class S Shares
Voya Strategic Allocation Moderate Class S Shares		Voya Strategic Allocation Moderate Portfolio Class S Shares
Wanger Advisors Trust		Wanger Advisors Trust
Wanger International		Wanger International
Wanger USA		Wanger USA

Each period reported on reflects a full twelve month period except as follows:


Subaccount		Inception Date
TA 60/40 Allocation Service Class		May 1, 2018
TA Levin Large Cap Value Service Class		May 1, 2018
TA International Equity Index Service Class		May 1, 2017
TA U.S. Equity Index Service Class		May 1, 2017
NVIT Emerging Markets Class D Shares		August 4, 2016
TA BlackRock Equity Smart Beta 100 Service Class		March 21, 2016
TA BlackRock Smart Beta 50 Service Class		March 21, 2016
TA BlackRock Smart Beta 75 Service Class		March 21, 2016
TA American Funds Managed Risk - Balanced Service Class		May 1, 2015
Voya Global Perspectives Class S Shares		May 1, 2015
Voya Large Cap Value Class S Shares		May 1, 2015
Voya Strategic Allocation Conservative Class S Shares		May 1, 2015
Voya Strategic Allocation Moderate Class S Shares		May 1, 2015
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		November 10, 2014
TA BlackRock Global Allocation Managed Risk - Growth Service Class		November 10, 2014

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

1. Organization (continued)

The following subaccount name changes were made effective during the fiscal year ended December 31, 2018:


Subaccount		Formerly
Rational Insider Buying VA		Catalyst Insider Buying VA
Rational Trend Aggregation VA		Catalyst Dividend Capture VA
TA BlackRock Global Real Estate Securities Initial Class		TA Clarion Global Real Estate Securities Initial Class
TA BlackRock Global Real Estate Securities Service Class		TA Clarion Global Real Estate Securities Service Class
TA BlackRock Government Money Market Initial Class		TA Aegon Government Money Market Initial Class
TA BlackRock Government Money Market Service Class		TA Aegon Government Money Market Service Class
TA BlackRock Smart Beta 40 Initial Class		TA AB Dynamic Allocation Initial Class
TA BlackRock Smart Beta 40 Service Class		TA AB Dynamic Allocation Service Class
TA Greystone International Growth Initial Class		TA MFS International Equity Initial Class
TA Greystone International Growth Service Class		TA MFS International Equity Service Class
TA JPMorgan Asset Allocation - Conservative Initial Class		TA Asset Allocation - Conservative Initial Class
TA JPMorgan Asset Allocation - Conservative Service Class		TA Asset Allocation - Conservative Service Class
TA JPMorgan Asset Allocation - Growth Initial Class		TA Asset Allocation - Growth Initial Class
TA JPMorgan Asset Allocation - Growth Service Class		TA Asset Allocation - Growth Service Class
TA JPMorgan Asset Allocation - Moderate Initial Class		TA Asset Allocation - Moderate Initial Class
TA JPMorgan Asset Allocation - Moderate Service Class		TA Asset Allocation - Moderate Service Class
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		TA Asset Allocation - Moderate Growth Initial Class
TA JPMorgan Asset Allocation - Moderate Growth Service Class		TA Asset Allocation - Moderate Growth Service Class
TA JPMorgan International Moderate Growth Initial Class		TA International Moderate Growth Initial Class
TA JPMorgan International Moderate Growth Service Class		TA International Moderate Growth Service Class
Vanguard^® Real Estate Index		Vanguard^® REIT Index

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

2. Summary of Significant Accounting Policies

The financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable annuity separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.

Investments

Net purchase payments received by the Separate Account are invested in the portfolios of the Mutual Funds as selected by the contract owner. Investments are stated at the closing net asset values per share on December 31, 2018.

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.

Fair Value Measurements and Fair Value Hierarchy

The Accounting Standards Codification^™ (ASC) 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the nature of inputs used to measure fair value and enhances disclosure requirements for fair value measurements.

The Separate Account has categorized its financial instruments into a three level hierarchy which is based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

Financial assets and liabilities recorded at fair value on the Statements of Assets and Liabilities are categorized as follows:

Level 1. Unadjusted quoted prices for identical assets or liabilities in an active market.

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

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

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

c) Inputs other than quoted market prices that are observable

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

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

All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon published closing NAV per share and therefore are considered Level 1.

There were no transfers between Level 1, Level 2 and Level 3 during the year ended December 31, 2018.

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

3. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2018 were as follows:


Subaccount	Purchases		Sales
AB Balanced Wealth Strategy Class B Shares	$	19,213,840	$	19,216,958
AB Growth and Income Class B Shares		57,784,220		49,939,917
AB Large Cap Growth Class B Shares		3,979,659		5,886,704
American Funds - Asset Allocation Class 2 Shares		140,389,963		153,588,334
American Funds - Bond Class 2 Shares		45,408,258		58,974,367
American Funds - Growth Class 2 Shares		138,763,732		87,305,221
American Funds - Growth-Income Class 2 Shares		95,340,613		61,655,754
American Funds - International Class 2 Shares		76,184,370		40,564,526
BlackRock Basic Value V.I. Class I Shares		4,301,293		4,165,246
BlackRock Global Allocation V.I. Class I Shares		1,210,572		2,535,539
BlackRock High Yield V.I. Class I Shares		483,787		966,853
Fidelity^® VIP Balanced Service Class 2		84,120,658		59,033,293
Fidelity^® VIP Contrafund^® Initial Class		23,631		22,249
Fidelity^® VIP Contrafund^® Service Class 2		113,137,553		109,461,086
Fidelity^® VIP Equity-Income Initial Class		2,888		1,879
Fidelity^® VIP Equity-Income Service Class 2		3,759,208		7,584,992
Fidelity^® VIP Growth Initial Class		2,719		1,147
Fidelity^® VIP Growth Service Class 2		6,494,358		7,455,262
Fidelity^® VIP Growth Opportunities Service Class 2		339,456		874,894
Fidelity^® VIP Mid Cap Initial Class		11,002		13,628
Fidelity^® VIP Mid Cap Service Class 2		68,675,437		70,524,301
Fidelity^® VIP Value Strategies Initial Class		108,149		104,002
Fidelity^® VIP Value Strategies Service Class 2		29,154,040		29,124,017
Franklin Founding Funds Allocation Class 4 Shares		5,055,472		22,053,939
Franklin Income Class 2 Shares		3,913,072		14,027,972
Franklin Mutual Shares Class 2 Shares		1,004,267		2,494,324
Franklin Templeton Foreign Class 2 Shares		1,199,760		5,472,631
Invesco V.I. American Franchise Series II Shares		548,837		1,309,721
Janus Henderson - Enterprise Service Shares		1,609,941		3,374,870
Janus Henderson - Global Research Service Shares		665,312		4,997,470
Janus Henderson - Mid Cap Value Service Shares		396,794		341,985
MFS^® New Discovery Service Class		7,040,350		8,056,338
MFS^® Total Return Service Class		3,581,719		8,104,561
NVIT Emerging Markets Class D Shares		70		383
Rational Insider Buying VA		122,667		474,774
Rational Trend Aggregation VA		75,217		339,933

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

3. Investments (continued)


Subaccount	Purchases		Sales
State Street Total Return V.I.S. Class 3 Shares		18,703,772		12,103,628
TA 60/40 Allocation Service Class		8,346,006		415,435
TA Aegon High Yield Bond Initial Class		10,781,054		19,799,599
TA Aegon High Yield Bond Service Class		33,359,521		40,592,103
TA Aegon U.S. Government Securities Initial Class		13,159,299		14,280,899
TA Aegon U.S. Government Securities Service Class		200,019,856		77,093,718
TA American Funds Managed Risk - Balanced Service Class		218,872,925		72,545,765
TA Barrow Hanley Dividend Focused Initial Class		24,339,151		78,388,924
TA Barrow Hanley Dividend Focused Service Class		19,140,566		42,056,805
TA BlackRock Equity Smart Beta 100 Service Class		11,048,415		13,082,018
TA BlackRock Global Allocation Service Class		62,682,286		211,259,184
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		62,341,175		23,432,493
TA BlackRock Global Allocation Managed Risk - Growth Service Class		27,101,007		31,056,635
TA BlackRock Global Real Estate Securities Initial Class		7,525,141		9,527,884
TA BlackRock Global Real Estate Securities Service Class		11,260,271		16,043,082
TA BlackRock Government Money Market Initial Class		51,211,407		47,640,117
TA BlackRock Government Money Market Service Class		328,770,989		285,447,365
TA BlackRock Smart Beta 40 Initial Class		2,013,377		3,962,416
TA BlackRock Smart Beta 40 Service Class		19,197,920		47,787,785
TA BlackRock Smart Beta 50 Service Class		91,518,639		12,952,561
TA BlackRock Smart Beta 75 Service Class		45,392,669		7,654,256
TA BlackRock Tactical Allocation Service Class		104,281,260		222,673,245
TA Greystone International Growth Initial Class		15,314,884		14,324,276
TA Greystone International Growth Service Class		14,280,860		24,986,841
TA International Equity Index Service Class		13,719,758		1,692,888
TA Janus Balanced Service Class		143,628,315		104,257,467
TA Janus Mid-Cap Growth Initial Class		13,758,603		15,748,511
TA Janus Mid-Cap Growth Service Class		26,337,006		17,294,209
TA Jennison Growth Initial Class		52,804,941		42,773,824
TA Jennison Growth Service Class		45,278,283		32,252,154
TA JPMorgan Asset Allocation - Conservative Initial Class		32,426,337		41,206,182
TA JPMorgan Asset Allocation - Conservative Service Class		113,646,442		164,129,859
TA JPMorgan Asset Allocation - Growth Initial Class		47,317,098		55,314,413
TA JPMorgan Asset Allocation - Growth Service Class		36,102,397		38,848,740
TA JPMorgan Asset Allocation - Moderate Initial Class		54,505,883		65,723,148
TA JPMorgan Asset Allocation - Moderate Service Class		856,197,229		574,299,698

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

3. Investments (continued)


Subaccount	Purchases		Sales
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		64,105,116		69,520,260
TA JPMorgan Asset Allocation - Moderate Growth Service Class		380,650,469		492,855,495
TA JPMorgan Core Bond Service Class		39,492,508		35,187,294
TA JPMorgan Enhanced Index Initial Class		24,389,828		26,652,918
TA JPMorgan Enhanced Index Service Class		15,180,453		18,266,364
TA JPMorgan International Moderate Growth Initial Class		4,693		1,179
TA JPMorgan International Moderate Growth Service Class		62,179,489		89,936,159
TA JPMorgan Mid Cap Value Service Class		30,746,768		45,629,580
TA JPMorgan Tactical Allocation Service Class		103,715,819		146,906,177
TA Legg Mason Dynamic Allocation - Balanced Service Class		39,134,353		136,547,925
TA Legg Mason Dynamic Allocation - Growth Service Class		25,083,675		70,351,458
TA Levin Large Cap Value Service Class		2,648,702		339,054
TA Madison Balanced Allocation Service Class		6,446,264		12,075,042
TA Madison Conservative Allocation Service Class		3,245,797		8,134,919
TA Madison Diversified Income Service Class		29,485,941		18,494,274
TA Managed Risk - Balanced ETF Service Class		217,512,989		617,421,072
TA Managed Risk - Conservative ETF Service Class		67,547,105		124,085,602
TA Managed Risk - Growth ETF Service Class		103,750,117		433,174,258
TA Market Participation Strategy Service Class		45,409,685		63,391,530
TA Morgan Stanley Capital Growth Initial Class		49,182,963		23,972,857
TA Morgan Stanley Capital Growth Service Class		65,812,691		32,446,568
TA Multi-Managed Balanced Initial Class		15,154,103		14,725,656
TA Multi-Managed Balanced Service Class		115,335,122		177,640,110
TA Multi-Manager Alternative Strategies Service Class		1,985,086		703,967
TA PIMCO Tactical - Balanced Service Class		72,548,276		86,458,175
TA PIMCO Tactical - Conservative Service Class		42,838,821		49,211,597
TA PIMCO Tactical - Growth Service Class		58,150,622		48,275,872
TA PIMCO Total Return Initial Class		24,575,040		35,003,610
TA PIMCO Total Return Service Class		72,992,925		127,869,769
TA PineBridge Inflation Opportunities Service Class		17,080,174		31,121,816
TA ProFunds UltraBear Service Class (OAM)		26,904,673		6,701,985
TA QS Investors Active Asset Allocation - Conservative Service Class		18,142,686		66,405,419
TA QS Investors Active Asset Allocation - Moderate Service Class		84,969,810		187,516,329
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		32,323,451		99,146,301
TA Small/Mid Cap Value Initial Class		19,384,082		22,537,818
TA Small/Mid Cap Value Service Class		28,751,813		25,430,563

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

3. Investments (continued)


Subaccount	Purchases		Sales
TA T. Rowe Price Small Cap Initial Class		23,802,774		23,984,242
TA T. Rowe Price Small Cap Service Class		46,197,497		47,102,221
TA Torray Concentrated Growth Initial Class		20,687,788		34,972,875
TA Torray Concentrated Growth Service Class		3,861,842		9,782,393
TA TS&W International Equity Initial Class		17,906,045		14,019,888
TA TS&W International Equity Service Class		7,624,194		7,500,729
TA U.S. Equity Index Service Class		37,088,006		5,174,251
TA WMC US Growth Initial Class		58,736,665		64,018,508
TA WMC US Growth Service Class		27,387,989		27,362,828
Vanguard^® Equity Index		1,172,960		538,844
Vanguard^® International		600,461		734,229
Vanguard^® Mid-Cap Index		477,394		287,916
Vanguard^® Real Estate Index		93,635		43,483
Vanguard^® Short-Term Investment Grade		361,960		273,386
Vanguard^® Total Bond Market Index		372,032		218,017
Voya Global Perspectives Class S Shares		2,119		258
Voya Large Cap Value Class S Shares		166		25
Voya Strategic Allocation Conservative Class S Shares		—		—
Voya Strategic Allocation Moderate Class S Shares		—		—
Wanger International		68,003		66,133
Wanger USA		—		—

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units

The change in units outstanding were as follows:


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
AB Balanced Wealth Strategy Class B Shares		1,523,685		(6,437,660	)		(4,913,975	)		2,184,367		(7,693,644	)		(5,509,277	)
AB Growth and Income Class B Shares		9,595,504		(15,344,653	)		(5,749,149	)		9,969,362		(18,232,403	)		(8,263,041	)
AB Large Cap Growth Class B Shares		138,842		(2,286,335	)		(2,147,493	)		516,356		(2,602,177	)		(2,085,821	)
American Funds - Asset Allocation Class 2 Shares		13,571,099		(46,829,771	)		(33,258,672	)		26,690,270		(30,743,455	)		(4,053,185	)
American Funds - Bond Class 2 Shares		8,426,991		(16,200,396	)		(7,773,405	)		8,256,221		(20,780,510	)		(12,524,289	)
American Funds - Growth Class 2 Shares		7,066,954		(12,783,085	)		(5,716,131	)		10,676,597		(11,736,881	)		(1,060,284	)
American Funds - Growth-Income Class 2 Shares		4,675,592		(8,885,565	)		(4,209,973	)		10,263,558		(10,140,423	)		123,135
American Funds - International Class 2 Shares		9,557,859		(11,556,136	)		(1,998,277	)		10,504,197		(8,983,955	)		1,520,242
BlackRock Basic Value V.I. Class I Shares		685,055		(1,248,500	)		(563,445	)		302,443		(937,189	)		(634,746	)
BlackRock Global Allocation V.I. Class I Shares		252,934		(1,092,678	)		(839,744	)		1,231,934		(2,151,853	)		(919,919	)
BlackRock High Yield V.I. Class I Shares		109,957		(364,534	)		(254,577	)		88,272		(370,185	)		(281,913	)
Fidelity^® VIP Balanced Service Class 2		12,989,014		(23,270,282	)		(10,281,268	)		11,954,659		(25,243,183	)		(13,288,524	)
Fidelity^® VIP Contrafund^® Initial Class		21		(7,630	)		(7,609	)		3,972		(37,661	)		(33,689	)
Fidelity^® VIP Contrafund^® Service Class 2		11,614,079		(29,537,801	)		(17,923,722	)		12,058,054		(22,222,791	)		(10,164,737	)
Fidelity^® VIP Equity-Income Initial Class		—		(879	)		(879	)		—		(14,439	)		(14,439	)
Fidelity^® VIP Equity-Income Service Class 2		352,664		(3,484,818	)		(3,132,154	)		340,406		(3,569,145	)		(3,228,739	)
Fidelity^® VIP Growth Initial Class		—		(420	)		(420	)		—		(3,561	)		(3,561	)
Fidelity^® VIP Growth Service Class 2		330,483		(3,073,544	)		(2,743,061	)		254,400		(2,873,370	)		(2,618,970	)
Fidelity^® VIP Growth Opportunities Service Class 2		55,567		(332,995	)		(277,428	)		177,959		(156,769	)		21,190
Fidelity^® VIP Mid Cap Initial Class		123		(3,264	)		(3,141	)		22,015		(1,228	)		20,787
Fidelity^® VIP Mid Cap Service Class 2		5,940,899		(15,765,820	)		(9,824,921	)		7,314,311		(13,097,849	)		(5,783,538	)
Fidelity^® VIP Value Strategies Initial Class		50,773		(56,594	)		(5,821	)		51,180		(9,392	)		41,788
Fidelity^® VIP Value Strategies Service Class 2		6,742,126		(9,055,247	)		(2,313,121	)		4,826,259		(8,499,004	)		(3,672,745	)
Franklin Founding Funds Allocation Class 4 Shares		109,929		(9,949,405	)		(9,839,476	)		82,105		(8,917,934	)		(8,835,829	)
Franklin Income Class 2 Shares		413,996		(8,916,743	)		(8,502,747	)		531,794		(10,057,056	)		(9,525,262	)
Franklin Mutual Shares Class 2 Shares		36,490		(1,629,644	)		(1,593,154	)		10,802		(1,812,087	)		(1,801,285	)
Franklin Templeton Foreign Class 2 Shares		364,020		(4,737,630	)		(4,373,610	)		322,067		(4,533,791	)		(4,211,724	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
Invesco V.I. American Franchise Series II Shares		42,437		(615,822	)		(573,385	)		4,269		(485,362	)		(481,093	)
Janus Henderson - Enterprise Service Shares		151,583		(1,239,729	)		(1,088,146	)		285,646		(1,168,127	)		(882,481	)
Janus Henderson - Global Research Service Shares		258,591		(3,326,563	)		(3,067,972	)		378,693		(2,624,765	)		(2,246,072	)
Janus Henderson - Mid Cap Value Service Shares		50,595		(120,053	)		(69,458	)		11,102		(50,009	)		(38,907	)
MFS^® New Discovery Service Class		235,719		(2,656,779	)		(2,421,060	)		244,514		(2,789,345	)		(2,544,831	)
MFS^® Total Return Service Class		332,481		(3,975,697	)		(3,643,216	)		359,371		(3,838,888	)		(3,479,517	)
NVIT Emerging Markets Class D Shares		—		(21	)		(21	)		—		(339	)		(339	)
Rational Insider Buying VA		4,310		(248,152	)		(243,842	)		24,845		(316,354	)		(291,509	)
Rational Trend Aggregation VA		10,794		(236,985	)		(226,191	)		25,547		(303,852	)		(278,305	)
State Street Total Return V.I.S. Class 3 Shares		1,312,073		(6,050,485	)		(4,738,412	)		1,711,490		(6,088,368	)		(4,376,878	)
TA 60/40 Allocation Service Class		1,559,228		(53,047	)		1,506,181			—		—			—
TA Aegon High Yield Bond Initial Class		2,752,719		(8,261,448	)		(5,508,729	)		3,152,598		(6,563,867	)		(3,411,269	)
TA Aegon High Yield Bond Service Class		6,331,640		(11,686,304	)		(5,354,664	)		7,147,909		(10,824,818	)		(3,676,909	)
TA Aegon U.S. Government Securities Initial Class		8,207,217		(8,956,243	)		(749,026	)		4,240,978		(10,021,317	)		(5,780,339	)
TA Aegon U.S. Government Securities Service Class		41,550,404		(26,832,098	)		14,718,306			11,613,702		(60,855,036	)		(49,241,334	)
TA American Funds Managed Risk - Balanced Service Class		17,252,554		(6,072,206	)		11,180,348			25,097,874		(3,669,481	)		21,428,393
TA Barrow Hanley Dividend Focused Initial Class		6,945,777		(28,480,423	)		(21,534,646	)		13,171,148		(19,806,441	)		(6,635,293	)
TA Barrow Hanley Dividend Focused Service Class		2,153,579		(11,318,867	)		(9,165,288	)		4,630,076		(11,433,873	)		(6,803,797	)
TA BlackRock Equity Smart Beta 100 Service Class		786,162		(990,943	)		(204,781	)		1,638,985		(720,196	)		918,789
TA BlackRock Global Allocation Service Class		7,432,004		(91,646,552	)		(84,214,548	)		15,303,828		(86,007,399	)		(70,703,571	)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		6,005,589		(2,185,490	)		3,820,099			4,406,684		(2,644,637	)		1,762,047
TA BlackRock Global Allocation Managed Risk - Growth Service Class		2,277,060		(2,855,018	)		(577,958	)		4,026,852		(2,834,495	)		1,192,357
TA BlackRock Global Real Estate Securities Initial Class		1,751,297		(3,650,757	)		(1,899,460	)		1,222,696		(2,469,046	)		(1,246,350	)
TA BlackRock Global Real Estate Securities Service Class		1,010,839		(6,083,144	)		(5,072,305	)		1,947,304		(6,166,292	)		(4,218,988	)
TA BlackRock Government Money Market Initial Class		48,955,024		(42,840,185	)		6,114,839			26,608,695		(43,018,836	)		(16,410,141	)
TA BlackRock Government Money Market Service Class		141,518,817		(138,789,554	)		2,729,263			112,680,805		(163,595,509	)		(50,914,704	)
TA BlackRock Smart Beta 40 Initial Class		1,080,267		(2,176,973	)		(1,096,706	)		753,761		(2,790,589	)		(2,036,828	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA BlackRock Smart Beta 40 Service Class		2,426,732		(23,652,010	)		(21,225,278	)		2,685,914		(30,514,401	)		(27,828,487	)
TA BlackRock Smart Beta 50 Service Class		8,030,843		(1,102,263	)		6,928,580			2,414,536		(964,328	)		1,450,208
TA BlackRock Smart Beta 75 Service Class		3,715,143		(614,179	)		3,100,964			1,300,153		(217,328	)		1,082,825
TA BlackRock Tactical Allocation Service Class		9,017,567		(77,470,941	)		(68,453,374	)		14,692,214		(70,930,871	)		(56,238,657	)
TA Greystone International Growth Initial Class		8,368,569		(8,423,131	)		(54,562	)		8,185,845		(5,519,695	)		2,666,150
TA Greystone International Growth Service Class		2,002,016		(8,795,897	)		(6,793,881	)		5,473,524		(5,499,335	)		(25,811	)
TA International Equity Index Service Class		1,265,869		(156,076	)		1,109,793			664,366		(35,602	)		628,764
TA Janus Balanced Service Class		28,380,728		(27,666,375	)		714,353			25,913,479		(29,378,202	)		(3,464,723	)
TA Janus Mid-Cap Growth Initial Class		5,436,682		(7,947,017	)		(2,510,335	)		3,930,961		(5,691,726	)		(1,760,765	)
TA Janus Mid-Cap Growth Service Class		3,407,078		(4,261,244	)		(854,166	)		2,344,165		(4,096,739	)		(1,752,574	)
TA Jennison Growth Initial Class		10,553,125		(15,855,913	)		(5,302,788	)		5,313,280		(12,011,638	)		(6,698,358	)
TA Jennison Growth Service Class		3,180,503		(6,200,802	)		(3,020,299	)		5,181,850		(5,282,983	)		(101,133	)
TA JPMorgan Asset Allocation - Conservative Initial Class		13,288,452		(21,972,962	)		(8,684,510	)		8,555,494		(23,089,351	)		(14,533,857	)
TA JPMorgan Asset Allocation - Conservative Service Class		13,255,351		(72,889,257	)		(59,633,906	)		17,388,581		(76,988,666	)		(59,600,085	)
TA JPMorgan Asset Allocation - Growth Initial Class		11,030,046		(23,778,026	)		(12,747,980	)		8,539,306		(15,184,634	)		(6,645,328	)
TA JPMorgan Asset Allocation - Growth Service Class		3,726,737		(13,398,852	)		(9,672,115	)		4,284,131		(13,309,800	)		(9,025,669	)
TA JPMorgan Asset Allocation - Moderate Initial Class		14,962,063		(31,379,825	)		(16,417,762	)		7,629,398		(31,368,018	)		(23,738,620	)
TA JPMorgan Asset Allocation - Moderate Service Class		54,819,320		(228,773,202	)		(173,953,882	)		31,226,177		(210,638,007	)		(179,411,830	)
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		14,295,189		(30,175,990	)		(15,880,801	)		11,741,828		(30,381,678	)		(18,639,850	)
TA JPMorgan Asset Allocation - Moderate Growth Service Class		21,958,093		(180,994,364	)		(159,036,271	)		45,942,561		(182,150,263	)		(136,207,702	)
TA JPMorgan Core Bond Service Class		7,316,173		(14,093,712	)		(6,777,539	)		8,953,808		(21,121,200	)		(12,167,392	)
TA JPMorgan Enhanced Index Initial Class		7,004,207		(9,654,472	)		(2,650,265	)		6,954,811		(6,932,238	)		22,573
TA JPMorgan Enhanced Index Service Class		1,349,663		(3,661,708	)		(2,312,045	)		2,265,507		(2,847,204	)		(581,697	)
TA JPMorgan International Moderate Growth Initial Class		1,110		(556	)		554			—		(1,373	)		(1,373	)
TA JPMorgan International Moderate Growth Service Class		12,495,447		(45,652,434	)		(33,156,987	)		23,520,888		(47,840,359	)		(24,319,471	)
TA JPMorgan Mid Cap Value Service Class		4,061,822		(9,956,648	)		(5,894,826	)		8,653,775		(11,011,467	)		(2,357,692	)
TA JPMorgan Tactical Allocation Service Class		5,691,744		(51,865,484	)		(46,173,740	)		13,980,067		(56,521,241	)		(42,541,174	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA Legg Mason Dynamic Allocation - Balanced Service Class		4,698,058		(34,119,438	)		(29,421,380	)		5,448,376		(54,726,022	)		(49,277,646	)
TA Legg Mason Dynamic Allocation - Growth Service Class		6,477,706		(18,452,494	)		(11,974,788	)		6,419,083		(27,324,786	)		(20,905,703	)
TA Levin Large Cap Value Service Class		379,919		(56,530	)		323,389			—		—			—
TA Madison Balanced Allocation Service Class		618,747		(4,745,635	)		(4,126,888	)		943,576		(2,897,866	)		(1,954,290	)
TA Madison Conservative Allocation Service Class		533,443		(3,581,482	)		(3,048,039	)		200,875		(3,585,221	)		(3,384,346	)
TA Madison Diversified Income Service Class		3,604,623		(6,721,983	)		(3,117,360	)		3,609,815		(4,758,034	)		(1,148,219	)
TA Managed Risk - Balanced ETF Service Class		23,961,838		(188,072,355	)		(164,110,517	)		30,922,891		(197,247,862	)		(166,324,971	)
TA Managed Risk - Conservative ETF Service Class		12,593,909		(47,438,094	)		(34,844,185	)		13,969,521		(57,637,158	)		(43,667,637	)
TA Managed Risk - Growth ETF Service Class		15,365,231		(158,078,377	)		(142,713,146	)		30,109,326		(158,428,620	)		(128,319,294	)
TA Market Participation Strategy Service Class		7,901,328		(14,376,033	)		(6,474,705	)		2,871,744		(21,447,251	)		(18,575,507	)
TA Morgan Stanley Capital Growth Initial Class		6,891,310		(6,340,702	)		550,608			3,396,597		(4,966,118	)		(1,569,521	)
TA Morgan Stanley Capital Growth Service Class		4,449,254		(4,357,928	)		91,326			4,741,907		(3,645,097	)		1,096,810
TA Multi-Managed Balanced Initial Class		4,368,453		(5,441,241	)		(1,072,788	)		5,316,036		(4,327,409	)		988,627
TA Multi-Managed Balanced Service Class		7,920,741		(40,603,827	)		(32,683,086	)		57,946,841		(31,919,477	)		26,027,364
TA Multi-Manager Alternative Strategies Service Class		196,375		(68,671	)		127,704			35,958		(32,644	)		3,314
TA PIMCO Tactical - Balanced Service Class		4,705,473		(25,247,915	)		(20,542,442	)		10,261,351		(30,271,841	)		(20,010,490	)
TA PIMCO Tactical - Conservative Service Class		5,725,827		(14,844,962	)		(9,119,135	)		8,224,672		(16,927,901	)		(8,703,229	)
TA PIMCO Tactical - Growth Service Class		3,306,016		(15,327,665	)		(12,021,649	)		8,000,167		(16,507,843	)		(8,507,676	)
TA PIMCO Total Return Initial Class		13,017,182		(20,926,712	)		(7,909,530	)		9,922,532		(17,670,634	)		(7,748,102	)
TA PIMCO Total Return Service Class		12,286,984		(61,609,367	)		(49,322,383	)		12,485,151		(63,599,837	)		(51,114,686	)
TA PineBridge Inflation Opportunities Service Class		4,631,467		(15,046,728	)		(10,415,261	)		6,925,892		(17,977,262	)		(11,051,370	)
TA ProFunds UltraBear Service Class (OAM)		671,427,493		(172,407,006	)		499,020,487			22,101,178		(253,830,353	)		(231,729,175	)
TA QS Investors Active Asset Allocation - Conservative Service Class		3,269,843		(28,804,012	)		(25,534,169	)		6,311,169		(40,694,270	)		(34,383,101	)
TA QS Investors Active Asset Allocation - Moderate Service Class		9,738,675		(60,541,321	)		(50,802,646	)		17,554,145		(77,173,713	)		(59,619,568	)
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		7,075,120		(36,789,361	)		(29,714,241	)		10,635,414		(39,577,395	)		(28,941,981	)
TA Small/Mid Cap Value Initial Class		1,249,255		(3,474,380	)		(2,225,125	)		489,296		(2,554,540	)		(2,065,244	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA Small/Mid Cap Value Service Class		1,550,851		(6,540,776	)		(4,989,925	)		4,293,154		(8,752,905	)		(4,459,751	)
TA T. Rowe Price Small Cap Initial Class		5,300,315		(7,321,903	)		(2,021,588	)		4,669,194		(6,675,304	)		(2,006,110	)
TA T. Rowe Price Small Cap Service Class		2,886,418		(7,336,983	)		(4,450,565	)		4,697,334		(7,291,519	)		(2,594,185	)
TA Torray Concentrated Growth Initial Class		5,090,608		(9,218,168	)		(4,127,560	)		969,461		(5,248,354	)		(4,278,893	)
TA Torray Concentrated Growth Service Class		319,323		(2,287,815	)		(1,968,492	)		1,031,456		(2,474,122	)		(1,442,666	)
TA TS&W International Equity Initial Class		8,543,976		(6,780,649	)		1,763,327			4,534,985		(5,255,376	)		(720,391	)
TA TS&W International Equity Service Class		1,200,237		(2,728,634	)		(1,528,397	)		2,431,042		(2,153,460	)		277,582
TA U.S. Equity Index Service Class		3,233,373		(429,665	)		2,803,708			1,800,369		(143,644	)		1,656,725
TA WMC US Growth Initial Class		13,389,315		(27,098,607	)		(13,709,292	)		5,804,477		(18,627,764	)		(12,823,287	)
TA WMC US Growth Service Class		1,721,219		(5,631,616	)		(3,910,397	)		1,889,433		(5,084,140	)		(3,194,707	)
Vanguard^® Equity Index		486,258		(116,070	)		370,188			503,337		(101,561	)		401,776
Vanguard^® International		176,491		(376,350	)		(199,859	)		427,138		(100,951	)		326,187
Vanguard^® Mid-Cap Index		39,172		(96,381	)		(57,209	)		167,261		(21,136	)		146,125
Vanguard^® Real Estate Index		10,232		(16,395	)		(6,163	)		33,283		(20,560	)		12,723
Vanguard^® Short-Term Investment Grade		43,180		(92,627	)		(49,447	)		349,897		(482,523	)		(132,626	)
Vanguard^® Total Bond Market Index		37,172		(80,312	)		(43,140	)		137,701		(180,793	)		(43,092	)
Voya Global Perspectives Class S Shares		129		(1	)		128			129		(3	)		126
Voya Large Cap Value Class S Shares		2		(1	)		1			—		(3	)		(3	)
Voya Strategic Allocation Conservative Class S Shares		—		—			—			—		—			—
Voya Strategic Allocation Moderate Class S Shares		—		—			—			—		—			—
Wanger International		3,274		(40,859	)		(37,585	)		5,594		(38,982	)		(33,388	)
Wanger USA		—		—			—			1		(67,833	)		(67,832	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Unit Dollars (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
AB Balanced Wealth Strategy Class B Shares	$	10,528,416	$	(17,828,775	)	$	(7,300,359	)	$	9,468,517	$	(16,063,157	)	$	(6,594,640	)
AB Growth and Income Class B Shares		28,852,871		(46,781,780	)		(17,928,909	)		32,409,700		(42,876,573	)		(10,466,873	)
AB Large Cap Growth Class B Shares		329,434		(5,407,326	)		(5,077,892	)		891,772		(4,890,765	)		(3,998,993	)
American Funds - Asset Allocation Class 2 Shares		97,895,872		(143,472,008	)		(45,576,136	)		116,038,980		(76,070,097	)		39,968,883
American Funds - Bond Class 2 Shares		41,396,975		(56,694,257	)		(15,297,282	)		49,864,463		(38,807,758	)		11,056,705
American Funds - Growth Class 2 Shares		91,048,392		(82,011,310	)		9,037,082			98,323,541		(41,128,807	)		57,194,734
American Funds - Growth-Income Class 2 Shares		61,056,938		(56,671,161	)		4,385,777			82,957,637		(39,213,869	)		43,743,768
American Funds - International Class 2 Shares		64,333,811		(38,540,051	)		25,793,760			46,977,428		(25,008,796	)		21,968,632
BlackRock Basic Value V.I. Class I Shares		1,790,580		(3,854,477	)		(2,063,897	)		854,223		(2,597,148	)		(1,742,925	)
BlackRock Global Allocation V.I. Class I Shares		677,567		(2,355,941	)		(1,678,374	)		2,379,228		(4,220,572	)		(1,841,344	)
BlackRock High Yield V.I. Class I Shares		265,390		(911,081	)		(645,691	)		214,351		(906,246	)		(691,895	)
Fidelity^® VIP Balanced Service Class 2		60,541,254		(54,617,405	)		5,923,849			44,427,137		(48,468,831	)		(4,041,694	)
Fidelity^® VIP Contrafund^® Initial Class		277		(20,685	)		(20,408	)		14,222		(243,407	)		(229,185	)
Fidelity^® VIP Contrafund^® Service Class 2		61,504,641		(103,056,512	)		(41,551,871	)		71,342,361		(64,041,470	)		7,300,891
Fidelity^® VIP Equity-Income Initial Class		—		(1,576	)		(1,576	)		—		(23,107	)		(23,107	)
Fidelity^® VIP Equity-Income Service Class 2		710,627		(6,921,780	)		(6,211,153	)		636,886		(6,714,097	)		(6,077,211	)
Fidelity^® VIP Growth Initial Class		—		(992	)		(992	)		—		(6,470	)		(6,470	)
Fidelity^® VIP Growth Service Class 2		779,126		(6,866,136	)		(6,087,010	)		437,125		(5,426,805	)		(4,989,680	)
Fidelity^® VIP Growth Opportunities Service Class 2		186,612		(836,051	)		(649,439	)		382,678		(302,918	)		79,760
Fidelity^® VIP Mid Cap Initial Class		1,701		(12,984	)		(11,283	)		50,190		(4,208	)		45,982
Fidelity^® VIP Mid Cap Service Class 2		36,147,721		(66,250,952	)		(30,103,231	)		44,374,920		(46,170,447	)		(1,795,527	)
Fidelity^® VIP Value Strategies Initial Class		91,176		(101,806	)		(10,630	)		109,343		(17,211	)		92,132
Fidelity^® VIP Value Strategies Service Class 2		22,162,373		(27,449,636	)		(5,287,263	)		20,667,588		(21,464,011	)		(796,423	)
Franklin Founding Funds Allocation Class 4 Shares		224,968		(20,529,629	)		(20,304,661	)		162,173		(17,862,712	)		(17,700,539	)
Franklin Income Class 2 Shares		589,292		(13,009,297	)		(12,420,005	)		732,594		(14,222,147	)		(13,489,553	)
Franklin Mutual Shares Class 2 Shares		61,058		(2,261,015	)		(2,199,957	)		14,720		(2,467,743	)		(2,453,023	)
Franklin Templeton Foreign Class 2 Shares		424,348		(5,033,098	)		(4,608,750	)		329,523		(4,787,289	)		(4,457,766	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Unit Dollars (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
Invesco V.I. American Franchise Series II Shares	$	83,045	$	(1,200,494	)	$	(1,117,449	)	$	7,096	$	(839,856	)	$	(832,760	)
Janus Henderson - Enterprise Service Shares		470,269		(3,038,447	)		(2,568,178	)		399,049		(2,355,077	)		(1,956,028	)
Janus Henderson - Global Research Service Shares		401,892		(4,587,391	)		(4,185,499	)		395,979		(3,176,754	)		(2,780,775	)
Janus Henderson - Mid Cap Value Service Shares		101,993		(298,028	)		(196,035	)		28,135		(121,194	)		(93,059	)
MFS^® New Discovery Service Class		703,286		(7,376,837	)		(6,673,551	)		566,384		(6,318,752	)		(5,752,368	)
MFS^® Total Return Service Class		603,679		(7,420,702	)		(6,817,023	)		633,672		(6,993,897	)		(6,360,225	)
NVIT Emerging Markets Class D Shares		—		(285	)		(285	)		—		(3,907	)		(3,907	)
Rational Insider Buying VA		7,491		(443,470	)		(435,979	)		39,156		(493,595	)		(454,439	)
Rational Trend Aggregation VA		14,688		(319,699	)		(305,011	)		35,232		(417,976	)		(382,744	)
State Street Total Return V.I.S. Class 3 Shares		6,909,713		(11,280,379	)		(4,370,666	)		6,373,341		(9,954,379	)		(3,581,038	)
TA 60/40 Allocation Service Class		8,347,672		(389,845	)		7,957,827			—		—			—
TA Aegon High Yield Bond Initial Class		6,089,778		(18,777,424	)		(12,687,646	)		7,047,192		(14,350,822	)		(7,303,630	)
TA Aegon High Yield Bond Service Class		24,778,333		(38,894,075	)		(14,115,742	)		37,108,537		(43,972,915	)		(6,864,378	)
TA Aegon U.S. Government Securities Initial Class		11,437,735		(13,448,799	)		(2,011,064	)		6,427,099		(15,766,879	)		(9,339,780	)
TA Aegon U.S. Government Securities Service Class		195,994,882		(74,926,949	)		121,067,933			34,744,817		(223,807,342	)		(189,062,525	)
TA American Funds Managed Risk - Balanced Service Class		193,622,020		(67,582,412	)		126,039,608			264,552,695		(39,587,880	)		224,964,815
TA Barrow Hanley Dividend Focused Initial Class		16,572,835		(72,943,748	)		(56,370,913	)		30,713,134		(47,562,316	)		(16,849,182	)
TA Barrow Hanley Dividend Focused Service Class		16,309,883		(39,989,356	)		(23,679,473	)		23,085,838		(30,724,360	)		(7,638,522	)
TA BlackRock Equity Smart Beta 100 Service Class		10,126,502		(12,663,492	)		(2,536,990	)		18,678,537		(8,249,446	)		10,429,091
TA BlackRock Global Allocation Service Class		37,386,024		(196,057,239	)		(158,671,215	)		111,171,075		(158,091,888	)		(46,920,813	)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		61,084,279		(21,894,213	)		39,190,066			43,460,307		(26,088,373	)		17,371,934
TA BlackRock Global Allocation Managed Risk - Growth Service Class		23,620,686		(29,040,063	)		(5,419,377	)		40,236,176		(27,084,612	)		13,151,564
TA BlackRock Global Real Estate Securities Initial Class		4,119,396		(8,999,496	)		(4,880,100	)		2,814,031		(6,104,679	)		(3,290,648	)
TA BlackRock Global Real Estate Securities Service Class		5,223,424		(15,184,072	)		(9,960,648	)		8,422,212		(12,784,407	)		(4,362,195	)
TA BlackRock Government Money Market Initial Class		49,426,332		(46,071,504	)		3,354,828			27,799,259		(46,505,927	)		(18,706,668	)
TA BlackRock Government Money Market Service Class		327,154,039		(282,214,765	)		44,939,274			233,034,366		(315,929,717	)		(82,895,351	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Unit Dollars (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
TA BlackRock Smart Beta 40 Initial Class	$	1,685,158	$	(3,712,139	)	$	(2,026,981	)	$	1,227,951	$	(4,426,851	)	$	(3,198,900	)
TA BlackRock Smart Beta 40 Service Class		14,726,471		(44,158,426	)		(29,431,955	)		12,991,231		(54,073,338	)		(41,082,107	)
TA BlackRock Smart Beta 50 Service Class		90,642,563		(12,372,331	)		78,270,232			25,711,029		(10,375,378	)		15,335,651
TA BlackRock Smart Beta 75 Service Class		44,905,465		(7,268,671	)		37,636,794			14,070,643		(2,377,395	)		11,693,248
TA BlackRock Tactical Allocation Service Class		30,957,682		(204,954,032	)		(173,996,350	)		67,522,081		(170,506,565	)		(102,984,484	)
TA Greystone International Growth Initial Class		14,150,131		(13,418,140	)		731,991			12,936,663		(8,609,149	)		4,327,514
TA Greystone International Growth Service Class		13,200,659		(24,001,176	)		(10,800,517	)		24,050,412		(14,414,119	)		9,636,293
TA International Equity Index Service Class		13,671,483		(1,554,176	)		12,117,307			7,045,360		(377,497	)		6,667,863
TA Janus Balanced Service Class		113,404,035		(95,755,729	)		17,648,306			113,039,966		(72,529,042	)		40,510,924
TA Janus Mid-Cap Growth Initial Class		10,494,234		(14,740,760	)		(4,246,526	)		6,083,253		(8,625,417	)		(2,542,164	)
TA Janus Mid-Cap Growth Service Class		22,352,176		(16,278,807	)		6,073,369			15,119,944		(12,156,471	)		2,963,473
TA Jennison Growth Initial Class		28,703,231		(39,975,364	)		(11,272,133	)		11,322,873		(24,311,762	)		(12,988,889	)
TA Jennison Growth Service Class		29,937,993		(30,766,030	)		(828,037	)		27,573,871		(19,892,737	)		7,681,134
TA JPMorgan Asset Allocation - Conservative Initial Class		22,711,065		(38,777,003	)		(16,065,938	)		14,952,498		(38,827,778	)		(23,875,280	)
TA JPMorgan Asset Allocation - Conservative Service Class		57,882,553		(152,148,577	)		(94,266,024	)		78,654,792		(148,937,976	)		(70,283,184	)
TA JPMorgan Asset Allocation - Growth Initial Class		24,276,165		(51,383,378	)		(27,107,213	)		16,702,310		(29,325,831	)		(12,623,521	)
TA JPMorgan Asset Allocation - Growth Service Class		18,893,652		(36,235,267	)		(17,341,615	)		26,218,855		(30,977,004	)		(4,758,149	)
TA JPMorgan Asset Allocation - Moderate Initial Class		28,966,094		(59,959,335	)		(30,993,241	)		13,889,951		(56,690,232	)		(42,800,281	)
TA JPMorgan Asset Allocation - Moderate Service Class		538,331,283		(524,114,027	)		14,217,256			149,989,022		(473,626,350	)		(323,637,328	)
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		29,168,116		(62,370,283	)		(33,202,167	)		22,140,136		(57,569,635	)		(35,429,499	)
TA JPMorgan Asset Allocation - Moderate Growth Service Class		140,818,240		(447,821,577	)		(307,003,337	)		267,089,876		(368,816,873	)		(101,726,997	)
TA JPMorgan Core Bond Service Class		33,770,866		(33,195,288	)		575,578			47,288,258		(42,323,120	)		4,965,138
TA JPMorgan Enhanced Index Initial Class		17,725,180		(24,949,090	)		(7,223,910	)		15,951,256		(16,225,199	)		(273,943	)
TA JPMorgan Enhanced Index Service Class		11,923,720		(17,471,118	)		(5,547,398	)		16,184,281		(11,193,191	)		4,991,090
TA JPMorgan International Moderate Growth Initial Class		1,522		(762	)		760			—		(1,810	)		(1,810	)
TA JPMorgan International Moderate Growth Service Class		44,322,654		(82,866,782	)		(38,544,128	)		75,090,666		(72,728,305	)		2,362,361

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Unit Dollars (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
TA JPMorgan Mid Cap Value Service Class	$	24,992,139	$	(43,258,742	)	$	(18,266,603	)	$	47,665,154	$	(36,147,377	)	$	11,517,777
TA JPMorgan Tactical Allocation Service Class		50,537,559		(135,165,480	)		(84,627,921	)		81,888,531		(133,371,686	)		(51,483,155	)
TA Legg Mason Dynamic Allocation - Balanced Service Class		25,932,187		(124,411,453	)		(98,479,266	)		33,719,878		(172,843,958	)		(139,124,080	)
TA Legg Mason Dynamic Allocation - Growth Service Class		20,075,603		(64,699,858	)		(44,624,255	)		27,840,465		(94,840,658	)		(67,000,193	)
TA Levin Large Cap Value Service Class		2,642,746		(333,324	)		2,309,422			—		—			—
TA Madison Balanced Allocation Service Class		2,220,273		(10,746,045	)		(8,525,772	)		4,337,828		(7,924,260	)		(3,586,432	)
TA Madison Conservative Allocation Service Class		1,489,446		(7,239,504	)		(5,750,058	)		948,076		(7,725,392	)		(6,777,316	)
TA Madison Diversified Income Service Class		24,927,200		(16,831,628	)		8,095,572			14,669,824		(9,663,653	)		5,006,171
TA Managed Risk - Balanced ETF Service Class		130,035,759		(553,917,033	)		(423,881,274	)		193,272,570		(483,948,610	)		(290,676,040	)
TA Managed Risk - Conservative ETF Service Class		50,778,006		(115,843,179	)		(65,065,173	)		52,916,417		(129,109,283	)		(76,192,866	)
TA Managed Risk - Growth ETF Service Class		63,826,107		(400,522,021	)		(336,695,914	)		131,935,300		(329,438,698	)		(197,503,398	)
TA Market Participation Strategy Service Class		21,622,306		(58,154,726	)		(36,532,420	)		11,148,212		(68,631,385	)		(57,483,173	)
TA Morgan Stanley Capital Growth Initial Class		24,106,297		(22,175,752	)		1,930,545			8,813,659		(13,297,975	)		(4,484,316	)
TA Morgan Stanley Capital Growth Service Class		45,375,591		(31,286,067	)		14,089,524			28,566,746		(13,941,609	)		14,625,137
TA Multi-Managed Balanced Initial Class		10,398,376		(13,506,918	)		(3,108,542	)		12,579,290		(10,071,517	)		2,507,773
TA Multi-Managed Balanced Service Class		54,954,937		(164,631,639	)		(109,676,702	)		353,009,221		(107,823,068	)		245,186,153
TA Multi-Manager Alternative Strategies Service Class		1,966,039		(679,114	)		1,286,925			360,190		(326,459	)		33,731
TA PIMCO Tactical - Balanced Service Class		11,922,315		(79,247,563	)		(67,325,248	)		31,996,612		(75,773,942	)		(43,777,330	)
TA PIMCO Tactical - Conservative Service Class		17,788,673		(46,044,021	)		(28,255,348	)		31,844,067		(46,603,531	)		(14,759,464	)
TA PIMCO Tactical - Growth Service Class		12,814,094		(44,103,541	)		(31,289,447	)		39,745,565		(44,515,938	)		(4,770,373	)
TA PIMCO Total Return Initial Class		19,791,265		(32,821,077	)		(13,029,812	)		15,529,007		(28,109,662	)		(12,580,655	)
TA PIMCO Total Return Service Class		53,033,488		(119,716,327	)		(66,682,839	)		61,499,147		(110,825,949	)		(49,326,802	)
TA PineBridge Inflation Opportunities Service Class		14,831,713		(29,362,101	)		(14,530,388	)		35,811,788		(40,408,076	)		(4,596,288	)
TA ProFunds UltraBear Service Class (OAM)		26,986,533		(6,539,644	)		20,446,889			1,073,871		(13,042,584	)		(11,968,713	)
TA QS Investors Active Asset Allocation - Conservative Service Class		12,448,724		(61,843,804	)		(49,395,080	)		23,599,475		(76,064,060	)		(52,464,585	)
TA QS Investors Active Asset Allocation - Moderate Service Class		67,067,063		(171,513,291	)		(104,446,228	)		63,344,006		(188,194,231	)		(124,850,225	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Unit Dollars (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
TA QS Investors Active Asset Allocation - Moderate Growth Service Class	$	25,265,880	$	(91,862,638	)	$	(66,596,758	)	$	37,240,892	$	(83,504,076	)	$	(46,263,184	)
TA Small/Mid Cap Value Initial Class		5,918,923		(20,739,224	)		(14,820,301	)		2,560,954		(14,266,631	)		(11,705,677	)
TA Small/Mid Cap Value Service Class		15,694,097		(24,035,571	)		(8,341,474	)		27,862,945		(25,561,911	)		2,301,034
TA T. Rowe Price Small Cap Initial Class		17,150,745		(22,325,438	)		(5,174,693	)		12,147,642		(17,518,952	)		(5,371,310	)
TA T. Rowe Price Small Cap Service Class		33,503,886		(44,505,901	)		(11,002,015	)		40,718,092		(30,320,210	)		10,397,882
TA Torray Concentrated Growth Initial Class		13,110,334		(32,806,866	)		(19,696,532	)		2,973,031		(18,346,971	)		(15,373,940	)
TA Torray Concentrated Growth Service Class		2,122,478		(9,286,374	)		(7,163,896	)		8,428,310		(7,625,933	)		802,377
TA TS&W International Equity Initial Class		16,098,869		(13,028,471	)		3,070,398			8,269,943		(9,620,886	)		(1,350,943	)
TA TS&W International Equity Service Class		6,837,113		(7,039,421	)		(202,308	)		7,812,313		(5,572,935	)		2,239,378
TA U.S. Equity Index Service Class		37,075,308		(4,824,519	)		32,250,789			19,103,992		(1,514,661	)		17,589,331
TA WMC US Growth Initial Class		33,935,385		(59,913,199	)		(25,977,814	)		11,233,951		(33,586,035	)		(22,352,084	)
TA WMC US Growth Service Class		16,520,794		(25,847,178	)		(9,326,384	)		14,393,677		(15,539,183	)		(1,145,506	)
Vanguard^® Equity Index		1,048,327		(507,557	)		540,770			1,733,871		(455,382	)		1,278,489
Vanguard^® International		521,283		(717,139	)		(195,856	)		891,820		(392,442	)		499,378
Vanguard^® Mid-Cap Index		387,983		(276,491	)		111,492			494,137		(138,626	)		355,511
Vanguard^® Real Estate Index		63,092		(40,179	)		22,913			148,737		(64,309	)		84,428
Vanguard^® Short-Term Investment Grade		310,589		(253,550	)		57,039			965,099		(766,464	)		198,635
Vanguard^® Total Bond Market Index		318,064		(202,789	)		115,275			821,823		(252,515	)		569,308
Voya Global Perspectives Class S Shares		1,375		(8	)		1,367			1,375		(37	)		1,338
Voya Large Cap Value Class S Shares		25		(11	)		14			—		(27	)		(27	)
Voya Strategic Allocation Conservative Class S Shares		—		—			—			—		—			—
Voya Strategic Allocation Moderate Class S Shares		—		—			—			—		—			—
Wanger International		20,357		(64,464	)		(44,107	)		26,400		(52,211	)		(25,811	)
Wanger USA		—		—			—			14		(189,850	)		(189,836	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. 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.


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio Lowest to Highest**						Total Return*** Corresponding to Lowest to Highest Expense Ratio
AB Balanced Wealth Strategy Class B Shares
12/31/2018		33,611,226	$	12.90	to	$	10.21	$	85,205,038		1.69	%		0.40	%	to	2.85	%		(6.79	) %	to	(9.02	) %
12/31/2017		38,525,201		13.84	to		11.22		99,946,976		1.81			0.40		to	2.85			14.88		to	12.43
12/31/2016		44,034,478		12.01	to		1.63		94,083,857		1.82			0.65		to	2.65			3.77		to	1.75
12/31/2015		47,328,479		11.58	to		1.60		95,500,596		2.02			0.65		to	2.65			0.64		to	(1.32	)
12/31/2014		47,372,152		11.51	to		1.62		91,875,603		2.43			0.65		to	2.65			6.42		to	4.34
AB Growth and Income Class B Shares
12/31/2018		72,168,849		2.24	to		10.45		211,887,489		0.75			0.30		to	2.80			(6.13	)	to	(8.42	)
12/31/2017		77,917,998		2.38	to		11.42		246,477,664		1.27			0.30		to	2.80			18.24		to	15.38
12/31/2016		86,181,039		2.02	to		1.37		220,284,665		0.84			0.30		to	2.30			10.74		to	8.58
12/31/2015		86,893,047		1.82	to		1.26		194,307,335		1.19			0.30		to	2.30			1.12		to	(0.85	)
12/31/2014		94,663,141		1.80	to		1.27		190,026,748		1.14			0.30		to	2.30			8.96		to	6.83
AB Large Cap Growth Class B Shares
12/31/2018		13,361,563		2.84	to		12.55		27,738,213		—			0.30		to	2.80			2.02		to	(0.48	)
12/31/2017		15,509,056		2.79	to		12.61		32,262,769		—			0.30		to	2.80			31.28		to	28.10
12/31/2016		17,594,877		2.12	to		1.57		28,324,370		—			0.30		to	2.30			2.05		to	0.06
12/31/2015		19,226,523		2.08	to		1.57		30,693,993		—			0.30		to	2.30			10.52		to	8.36
12/31/2014		24,431,104		1.88	to		1.45		35,592,264		—			0.30		to	2.30			13.50		to	11.28
American Funds - Asset Allocation Class 2 Shares
12/31/2018		212,831,662		14.10	to		10.39		677,757,631		1.62			0.60		to	2.95			(5.18	)	to	(7.35	)
12/31/2017		246,090,334		14.87	to		11.22		769,063,617		1.56			0.60		to	2.95			15.37		to	12.91
12/31/2016		250,143,519		12.88	to		1.60		634,039,608		1.74			0.75		to	2.75			8.60		to	6.49
12/31/2015		229,793,901		11.86	to		1.50		511,723,809		1.70			0.75		to	2.75			0.64		to	(1.31	)
12/31/2014		238,074,048		11.78	to		1.52		468,882,755		1.58			0.75		to	2.75			4.61		to	2.57
American Funds - Bond Class 2 Shares
12/31/2018		65,952,103		10.42	to		9.76		197,187,014		2.40			0.60		to	2.95			(1.31	)	to	(3.57	)
12/31/2017		73,725,508		10.56	to		10.12		217,547,968		2.00			0.60		to	2.95			2.89		to	0.70
12/31/2016		86,249,797		10.24	to		1.04		202,687,185		1.75			0.75		to	2.75			2.18		to	0.20
12/31/2015		83,923,617		10.03	to		1.04		168,449,072		1.79			0.75		to	2.75			(0.47	)	to	(2.41	)
12/31/2014		83,916,301		10.07	to		1.06		142,447,050		2.18			0.75		to	2.75			4.50		to	2.46
American Funds - Growth Class 2 Shares
12/31/2018		61,736,514		18.67	to		11.91		442,334,800		0.44			0.60		to	2.95			(0.85	)	to	(3.12	)
12/31/2017		67,452,645		18.83	to		12.29		442,900,974		0.53			0.60		to	2.95			27.34		to	24.63
12/31/2016		68,512,929		14.77	to		1.85		301,070,692		0.84			0.75		to	2.60			8.67		to	6.72
12/31/2015		69,343,957		13.59	to		1.74		241,712,021		0.67			0.75		to	2.60			6.06		to	4.15
12/31/2014		65,675,816		12.81	to		1.67		174,197,876		0.95			0.75		to	2.60			7.70		to	5.76
American Funds - Growth-Income Class 2 Shares
12/31/2018		56,040,276		17.44	to		11.22		409,513,116		1.43			0.60		to	2.95			(2.38	)	to	(4.62	)
12/31/2017		60,250,249		17.87	to		11.76		420,162,453		1.48			0.60		to	2.95			21.47		to	18.89
12/31/2016		60,127,114		14.69	to		1.81		308,892,051		1.61			0.75		to	2.60			10.69		to	8.70
12/31/2015		56,995,196		13.27	to		1.66		236,097,115		1.44			0.75		to	2.60			0.70		to	(1.12	)
12/31/2014		55,861,390		13.18	to		1.68		180,173,950		1.59			0.75		to	2.60			9.81		to	7.83
American Funds - International Class 2 Shares
12/31/2018		49,456,028		12.08	to		10.83		186,794,262		1.80			0.60		to	2.95			(13.66	)	to	(15.64	)
12/31/2017		51,454,305		14.00	to		12.84		191,936,131		1.34			0.60		to	2.95			31.16		to	28.37
12/31/2016		49,934,063		10.66	to		1.04		129,648,359		1.48			0.75		to	2.60			2.76		to	0.92
12/31/2015		54,330,699		10.37	to		1.03		114,935,590		1.62			0.75		to	2.60			(5.24	)	to	(6.95	)
12/31/2014		52,391,548		10.94	to		1.11		94,057,736		1.62			0.75		to	2.60			(3.38	)	to	(5.12	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio Lowest to Highest**						Total Return*** Corresponding to Lowest to Highest Expense Ratio
BlackRock Basic Value V.I. Class I Shares
12/31/2018		6,813,623	$	2.15	to	$	9.31	$	17,849,636		1.79	%		1.25	%	to	2.65	%		(8.99	)%	to	(10.24	)%
12/31/2017		7,377,068		2.36	to		10.38		21,702,345		1.54			1.25		to	2.65			6.91		to	5.45
12/31/2016		8,011,814		2.21	to		2.40		22,069,925		1.52			1.25		to	2.30			16.73		to	15.54
12/31/2015		8,817,241		1.89	to		2.07		20,857,527		1.42			1.25		to	2.30			(7.11	)	to	(8.07	)
12/31/2014		11,168,612		2.04	to		2.26		28,532,280		1.38			1.25		to	2.30			8.57		to	7.46
BlackRock Global Allocation V.I. Class I Shares
12/31/2018		5,295,268		2.73	to		9.97		10,410,140		0.92			1.25		to	2.65			(8.49	)	to	(9.74	)
12/31/2017		6,135,012		2.99	to		11.05		13,086,962		1.26			1.25		to	2.65			12.46		to	10.93
12/31/2016		7,054,931		2.66	to		2.61		13,393,563		1.25			1.25		to	2.30			2.83		to	1.78
12/31/2015		7,842,563		2.58	to		2.57		14,520,562		1.04			1.25		to	2.30			(1.94	)	to	(2.94	)
12/31/2014		10,125,330		2.63	to		2.64		19,447,094		2.05			1.25		to	2.30			0.85		to	(0.19	)
BlackRock High Yield V.I. Class I Shares
12/31/2018		1,507,900		2.49	to		9.94		3,612,958		5.48			1.25		to	2.65			(3.86	)	to	(5.18	)
12/31/2017		1,762,477		2.59	to		10.48		4,411,875		5.18			1.25		to	2.65			6.00		to	4.56
12/31/2016		2,044,390		2.44	to		1.99		4,838,768		5.46			1.25		to	2.30			11.52		to	10.38
12/31/2015		2,441,830		2.19	to		1.80		5,188,905		5.10			1.25		to	2.30			(4.77	)	to	(5.74	)
12/31/2014		3,187,284		2.30	to		1.91		7,122,273		5.37			1.25		to	2.30			1.62		to	0.58
Fidelity^® VIP Balanced Service Class 2
12/31/2018		137,704,135		1.83	to		10.47		364,935,164		1.31			0.30		to	2.65			(4.73	)	to	(6.92	)
12/31/2017		147,985,403		1.92	to		11.24		382,158,570		1.28			0.30		to	2.65			15.77		to	13.13
12/31/2016		161,273,927		1.66	to		1.38		336,960,896		1.26			0.30		to	2.45			6.66		to	4.43
12/31/2015		159,318,959		1.56	to		1.32		299,484,731		1.43			0.30		to	2.45			0.06		to	(2.04	)
12/31/2014		146,071,274		1.56	to		1.35		250,216,054		1.51			0.30		to	2.45			9.69		to	7.39
Fidelity^® VIP Contrafund^® Initial Class
12/31/2018		72,197		2.04	to		10.63		221,362		0.71			0.30		to	2.70			(6.66	)	to	(8.85	)
12/31/2017		79,806		2.19	to		11.66		258,065		0.91			0.30		to	2.70			21.51		to	20.67
12/31/2016		113,495		1.80	to		1.57		431,681		0.73			0.30		to	1.00			7.68		to	6.93
12/31/2015		201,666		1.67	to		1.47		716,924		1.05			0.30		to	1.00			0.37		to	(0.33	)
12/31/2014		215,716		1.67	to		1.47		798,211		0.87			0.30		to	1.00			11.61		to	10.83
Fidelity^® VIP Contrafund^® Service Class 2
12/31/2018		130,170,833		2.44	to		10.61		494,770,479		0.43			0.30		to	2.80			(6.92	)	to	(9.20	)
12/31/2017		148,094,555		2.62	to		11.68		579,167,529		0.78			0.30		to	2.80			21.22		to	18.29
12/31/2016		158,259,292		2.16	to		1.41		476,359,703		0.64			0.30		to	2.30			7.41		to	5.31
12/31/2015		172,144,924		2.01	to		1.34		449,859,068		0.80			0.30		to	2.30			0.11		to	(1.84	)
12/31/2014		198,325,170		2.01	to		1.36		465,848,417		0.81			0.30		to	2.30			11.32		to	9.14
Fidelity^® VIP Equity-Income Initial Class
12/31/2018		23,527		1.54	to		9.66		38,033		2.27			0.30		to	2.70			(8.57	)	to	(10.72	)
12/31/2017		24,406		1.68	to		10.82		43,356		1.50			0.30		to	2.70			12.56		to	11.78
12/31/2016		38,845		1.49	to		1.61		61,069		2.28			0.30		to	1.00			17.67		to	16.85
12/31/2015		52,261		1.27	to		1.38		70,747		3.01			0.30		to	1.00			(4.25	)	to	(4.92	)
12/31/2014		63,434		1.33	to		1.45		89,679		2.89			0.30		to	1.00			8.39		to	7.64
Fidelity^® VIP Equity-Income Service Class 2
12/31/2018		20,712,987		1.95	to		9.64		37,740,091		1.98			0.30		to	2.80			(8.81	)	to	(11.04	)
12/31/2017		23,845,141		2.13	to		10.84		48,184,382		1.46			0.30		to	2.80			12.31		to	9.59
12/31/2016		27,073,880		1.90	to		1.25		49,230,256		2.09			0.30		to	2.30			17.36		to	15.07
12/31/2015		30,565,159		1.62	to		1.09		47,923,174		2.74			0.30		to	2.30			(4.52	)	to	(6.39	)
12/31/2014		38,349,894		1.70	to		1.16		63,824,949		2.52			0.30		to	2.30			8.16		to	6.04
Fidelity^® VIP Growth Initial Class
12/31/2018		8,174		2.48	to		12.54		17,561		0.24			0.30		to	2.70			(0.47	)	to	(2.81	)
12/31/2017		8,594		2.49	to		12.90		18,642		0.23			0.30		to	2.70			34.73		to	33.80
12/31/2016		12,155		1.85	to		1.61		19,555		0.03			0.30		to	1.00			0.50		to	(0.19	)
12/31/2015		25,199		1.84	to		1.61		40,557		0.26			0.30		to	1.00			6.85		to	6.11
12/31/2014		25,431		1.72	to		1.52		38,477		0.19			0.30		to	1.00			10.96		to	10.20

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
Fidelity^® VIP Growth Service Class 2
12/31/2018		16,810,542	$	2.77	to	$	12.53	$	33,696,406		0.04	%		0.30	%	to	2.80	%		(0.73	)%	to	(3.16	)%
12/31/2017		19,553,603		2.79	to		12.94		40,016,140		0.08			0.30		to	2.80			34.41		to	31.16
12/31/2016		22,172,573		2.08	to		1.37		34,319,380		—			0.30		to	2.30			0.25		to	(1.71	)
12/31/2015		25,975,749		2.07	to		1.40		40,617,613		0.03			0.30		to	2.30			6.58		to	4.50
12/31/2014		32,507,157		1.94	to		1.34		48,200,149		—			0.30		to	2.30			10.68		to	8.52
Fidelity^® VIP Growth Opportunities Service Class 2
12/31/2018		929,775		14.54	to		14.10		2,346,465		0.09			1.25		to	2.80			10.82		to	9.14
12/31/2017		1,207,203		13.12	to		12.92		2,711,713		0.11			1.25		to	2.80			32.53		to	30.53
12/31/2016		1,186,013		1.83	to		1.32		1,992,681		0.05			1.25		to	1.75			(1.17	)	to	(1.65	)
12/31/2015		1,281,973		1.85	to		1.34		2,179,017		0.00			1.25		to	1.75			4.04		to	3.53
12/31/2014		1,532,255		1.78	to		1.30		2,517,712		0.01			1.25		to	1.75			10.57		to	10.02
Fidelity^® VIP Mid Cap Initial Class
12/31/2018		38,781		1.93	to		9.57		82,670		0.64			0.30		to	2.70			(14.80	)	to	(16.80	)
12/31/2017		41,922		2.26	to		11.50		108,346		0.70			0.30		to	2.70			20.45		to	19.61
12/31/2016		21,135		1.88	to		1.46		52,280		0.50			0.30		to	1.00			11.90		to	11.12
12/31/2015		24,745		1.68	to		1.31		51,157		0.42			0.30		to	1.00			(1.68	)	to	(2.37	)
12/31/2014		31,431		1.71	to		1.34		59,307		0.26			0.30		to	1.00			5.97		to	5.23
Fidelity^® VIP Mid Cap Service Class 2
12/31/2018		74,180,131		2.37	to		9.59		288,831,176		0.39			0.30		to	2.80			(15.03	)	to	(17.11	)
12/31/2017		84,005,052		2.79	to		11.57		374,376,908		0.49			0.30		to	2.80			20.18		to	17.26
12/31/2016		89,788,590		2.32	to		1.48		316,226,522		0.32			0.30		to	2.30			11.59		to	9.41
12/31/2015		98,025,909		2.08	to		1.35		298,255,903		0.24			0.30		to	2.30			(1.92	)	to	(3.84	)
12/31/2014		114,999,325		2.12	to		1.41		345,744,918		0.02			0.30		to	2.30			5.71		to	3.65
Fidelity^® VIP Value Strategies Initial Class
12/31/2018		80,999		1.50	to		9.16		255,289		0.89			0.30		to	2.50			(17.57	)	to	(19.35	)
12/31/2017		86,820		1.82	to		11.36		330,169		1.51			0.30		to	2.50			19.00		to	18.17
12/31/2016		45,032		1.53	to		1.48		187,030		1.43			0.30		to	1.00			9.30		to	8.54
12/31/2015		47,767		1.40	to		1.37		89,494		1.13			0.30		to	1.00			(3.28	)	to	(3.95	)
12/31/2014		46,549		1.45	to		1.42		104,026		1.15			0.30		to	1.00			6.48		to	5.73
Fidelity^® VIP Value Strategies Service Class 2
12/31/2018		42,681,877		1.97	to		9.19		116,996,447		0.71			0.30		to	2.80			(17.75	)	to	(19.76	)
12/31/2017		44,994,998		2.39	to		11.45		149,707,366		1.23			0.30		to	2.80			18.73		to	15.85
12/31/2016		48,667,743		2.02	to		1.31		128,230,984		0.93			0.30		to	2.30			8.95		to	6.82
12/31/2015		53,699,682		1.85	to		1.23		124,591,778		0.85			0.30		to	2.30			(3.48	)	to	(5.37	)
12/31/2014		63,993,977		1.92	to		1.30		144,232,335		0.84			0.30		to	2.30			6.19		to	4.12
Franklin Founding Funds Allocation Class 4 Shares
12/31/2018		40,474,209		1.35	to		9.50		75,009,599		2.88			0.60		to	2.80			(10.12	)	to	(12.06	)
12/31/2017		50,313,685		1.50	to		10.81		104,865,929		2.55			0.60		to	2.80			11.12		to	8.74
12/31/2016		59,149,514		1.35	to		1.76		112,099,678		3.70			0.60		to	2.60			12.25		to	10.07
12/31/2015		67,682,365		1.20	to		1.60		115,509,798		2.72			0.60		to	2.60			(6.80	)	to	(8.62	)
12/31/2014		80,598,108		1.29	to		1.75		149,122,631		2.72			0.60		to	2.60			2.14		to	0.15
Franklin Income Class 2 Shares
12/31/2018		43,367,555		1.43	to		9.92		59,934,934		4.80			1.00		to	2.80			(5.26	)	to	(6.93	)
12/31/2017		51,870,302		1.51	to		10.66		76,044,090		4.16			1.00		to	2.80			8.59		to	6.69
12/31/2016		61,395,564		1.39	to		1.23		83,312,836		5.07			1.00		to	2.30			12.90		to	11.47
12/31/2015		74,138,690		1.23	to		1.10		89,472,772		4.62			1.00		to	2.30			(7.97	)	to	(9.14	)
12/31/2014		95,658,242		1.34	to		1.22		125,848,593		4.99			1.00		to	2.30			3.58		to	2.26
Franklin Mutual Shares Class 2 Shares
12/31/2018		10,583,322		1.29	to		9.24		13,324,515		2.34			1.00		to	2.80			(9.97	)	to	(11.56	)
12/31/2017		12,176,476		1.43	to		10.45		17,081,386		2.20			1.00		to	2.80			7.28		to	5.40
12/31/2016		13,977,761		1.34	to		1.18		18,358,702		1.99			1.00		to	2.30			14.91		to	13.46
12/31/2015		15,954,729		1.16	to		1.04		18,306,795		2.83			1.00		to	2.30			(5.88	)	to	(7.07	)
12/31/2014		21,834,462		1.23	to		1.12		26,638,380		2.00			1.00		to	2.30			6.06		to	4.71

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
Franklin Templeton Foreign Class 2 Shares
12/31/2018		25,135,514	$	0.97	to	$	9.33	$	23,322,722		2.68	%		1.00	%	to	2.80	%		(16.28	)%	to	(17.76	)%
12/31/2017		29,509,124		1.16	to		11.34		32,841,409		2.59			1.00		to	2.80			15.54		to	13.52
12/31/2016		33,720,848		1.00	to		0.89		32,654,219		1.95			1.00		to	2.30			6.12		to	4.77
12/31/2015		38,972,850		0.95	to		0.85		35,741,459		3.22			1.00		to	2.30			(7.42	)	to	(8.60	)
12/31/2014		49,701,555		1.02	to		0.93		49,421,163		1.89			1.00		to	2.30			(12.01	)	to	(13.13	)
Invesco V.I. American Franchise Series II Shares
12/31/2018		3,405,149		1.88	to		11.38		5,914,066		—			0.30		to	2.80			(4.18	)	to	(6.52	)
12/31/2017		3,978,534		1.96	to		12.17		7,305,661		—			0.30		to	2.80			26.65		to	23.58
12/31/2016		4,459,627		1.55	to		1.41		6,543,470		—			0.30		to	2.30			1.71		to	(0.27	)
12/31/2015		5,078,250		1.52	to		1.42		7,414,245		—			0.30		to	2.30			4.44		to	2.39
12/31/2014		6,712,184		1.46	to		1.38		9,493,323		—			0.30		to	2.30			7.85		to	5.74
Janus Henderson - Enterprise Service Shares
12/31/2018		8,614,115		3.53	to		11.75		19,757,244		0.13			0.30		to	2.80			(0.96	)	to	(3.39	)
12/31/2017		9,702,261		3.57	to		12.16		22,591,758		0.54			0.30		to	2.80			26.71		to	23.64
12/31/2016		10,584,742		2.82	to		1.78		19,751,582		0.71			0.30		to	2.30			11.77		to	9.59
12/31/2015		11,696,584		2.52	to		1.62		19,764,226		0.74			0.30		to	2.30			3.46		to	1.43
12/31/2014		14,698,057		2.43	to		1.60		24,097,729		0.03			0.30		to	2.30			11.91		to	9.72
Janus Henderson - Global Research Service Shares
12/31/2018		18,506,476		1.86	to		11.02		22,907,022		0.96			0.30		to	2.80			(7.36	)	to	(9.63	)
12/31/2017		21,574,448		2.01	to		12.20		29,147,018		0.68			0.30		to	2.80			26.30		to	23.24
12/31/2016		23,820,520		1.59	to		1.00		25,804,944		0.94			0.30		to	2.30			1.51		to	(0.47	)
12/31/2015		27,624,966		1.56	to		1.01		29,897,411		0.50			0.30		to	2.30			(2.82	)	to	(4.72	)
12/31/2014		37,018,168		1.61	to		1.06		41,374,871		0.96			0.30		to	2.30			6.86		to	4.77
Janus Henderson - Mid Cap Value Service Shares
12/31/2018		1,170,029		9.46	to		9.17		2,566,104		0.89			1.25		to	2.80			(14.89	)	to	(16.18	)
12/31/2017		1,239,487		11.12	to		10.95		3,228,213		0.64			1.25		to	2.80			12.23		to	10.55
12/31/2016		1,278,394		2.41	to		2.22		2,972,307		0.90			1.25		to	1.75			17.30		to	16.73
12/31/2015		1,382,062		2.06	to		1.90		2,735,038		1.00			1.25		to	1.75			(4.88	)	to	(5.35	)
12/31/2014		1,766,515		2.16	to		2.01		3,689,741		3.33			1.25		to	1.75			7.10		to	6.57
MFS^® New Discovery Service Class
12/31/2018		15,150,161		2.81	to		11.60		37,622,941		—			0.30		to	2.80			(2.01	)	to	(4.41	)
12/31/2017		17,571,221		2.87	to		12.14		44,936,194		—			0.30		to	2.80			25.95		to	22.90
12/31/2016		20,116,052		2.28	to		1.60		41,335,561		—			0.30		to	2.30			8.47		to	6.36
12/31/2015		23,490,980		2.10	to		1.50		45,033,655		—			0.30		to	2.30			(2.44	)	to	(4.35	)
12/31/2014		30,112,422		2.15	to		1.57		59,862,477		—			0.30		to	2.30			(7.77	)	to	(9.58	)
MFS^® Total Return Service Class
12/31/2018		22,981,760		1.85	to		9.94		40,564,664		1.95			0.30		to	2.80			(6.15	)	to	(8.45	)
12/31/2017		26,624,976		1.97	to		10.85		50,663,588		2.15			0.30		to	2.80			11.69		to	8.98
12/31/2016		30,104,493		1.76	to		1.29		51,932,163		2.65			0.30		to	2.30			8.49		to	6.38
12/31/2015		34,352,892		1.62	to		1.21		55,241,989		2.24			0.30		to	2.30			(0.88	)	to	(2.82	)
12/31/2014		44,471,420		1.64	to		1.25		73,196,447		1.69			0.30		to	2.30			7.91		to	5.80
NVIT Emerging Markets Class D Shares
12/31/2018		1,547		11.37	to		10.88		17,509		0.35			0.30		to	2.50			(17.96	)	to	(19.73	)
12/31/2017		1,568		13.86	to		13.56		21,682		0.91			0.30		to	2.50			40.67		to	39.98
12/31/2016⁽¹⁾		1,907		9.85	to		9.83		18,774		0.83			0.30		to	0.80			—		to	—
Rational Trend Aggregation VA
12/31/2018		1,054,500		9.07	to		8.86		1,370,978		3.91			1.25		to	2.50			(5.75	)	to	(6.91	)
12/31/2017		1,280,691		9.63	to		9.51		1,769,682		3.17			1.25		to	2.50			(2.85	)	to	(3.80	)
12/31/2016		1,558,996		1.43	to		1.30		2,218,052		4.61			1.30		to	2.30			5.60		to	4.57
12/31/2015		1,735,947		1.35	to		1.25		2,340,269		4.11			1.30		to	2.30			(4.30	)	to	(5.24	)
12/31/2014		2,178,735		1.41	to		1.32		3,069,679		4.32			1.30		to	2.30			8.75		to	7.68

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
Rational Insider Buying VA
12/31/2018		1,218,337	$	10.49	to	$	10.24	$	1,888,401		0.64	%		1.25	%	to	2.50	%		(8.33	)%	to	(9.46	)%
12/31/2017		1,462,179		11.45	to		11.31		2,476,679		0.54			1.25		to	2.50			16.01		to	14.88
12/31/2016		1,753,688		1.47	to		1.34		2,561,942		0.64			1.30		to	2.30			9.58		to	8.52
12/31/2015		1,940,602		1.34	to		1.24		2,588,982		0.51			1.30		to	2.30			(8.36	)	to	(9.25	)
12/31/2014		2,714,936		1.46	to		1.36		3,951,760		0.42			1.30		to	2.30			(3.32	)	to	(4.27	)
State Street Total Return V.I.S. Class 3 Shares
12/31/2018		24,994,175		12.38	to		10.16		48,611,551		1.84			0.40		to	2.85			(6.98	)	to	(9.21	)
12/31/2017		29,732,587		13.31	to		11.19		57,477,545		1.77			0.40		to	2.85			14.52		to	12.08
12/31/2016		34,109,465		11.59	to		1.25		54,132,289		1.59			0.65		to	2.65			5.40		to	3.35
12/31/2015		37,260,511		11.00	to		1.21		55,077,363		1.49			0.65		to	2.65			(1.98	)	to	(3.89	)
12/31/2014		41,034,372		11.22	to		1.26		59,012,874		1.54			0.65		to	2.65			4.40		to	2.36
TA 60/40 Allocation Service Class
12/31/2018⁽¹⁾		1,506,181		9.64	to		9.49		7,559,801		—			0.20		to	2.50			—		to	—
TA Aegon High Yield Bond Initial Class
12/31/2018		31,184,824		2.12	to		9.97		67,516,767		6.24			0.30		to	2.80			(2.64	)	to	(5.03	)
12/31/2017		36,693,553		2.18	to		10.50		82,935,784		5.86			0.30		to	2.80			7.12		to	4.52
12/31/2016		40,104,822		2.03	to		2.05		85,399,506		6.01			0.30		to	2.05			15.00		to	13.03
12/31/2015		42,484,816		1.77	to		1.82		79,539,458		5.83			0.30		to	2.05			(4.51	)	to	(6.15	)
12/31/2014		51,869,537		1.85	to		1.94		102,904,592		5.51			0.30		to	2.05			3.67		to	1.89
TA Aegon High Yield Bond Service Class
12/31/2018		35,239,960		11.58	to		9.94		137,411,428		5.95			0.20		to	2.65			(2.90	)	to	(5.23	)
12/31/2017		40,594,624		11.92	to		10.49		157,652,721		5.44			0.20		to	2.65			6.25		to	4.45
12/31/2016		44,271,533		11.15	to		1.49		155,587,458		5.98			0.90		to	2.30			13.97		to	12.42
12/31/2015		46,396,791		9.78	to		1.33		137,023,573		5.96			0.90		to	2.30			(5.16	)	to	(6.45	)
12/31/2014		51,566,530		10.31	to		1.42		132,109,914		5.60			0.90		to	2.30			2.68		to	1.28
TA Aegon U.S. Government Securities Initial Class
12/31/2018		39,822,530		1.48	to		9.79		62,214,715		2.99			0.30		to	2.80			(0.04	)	to	(2.49	)
12/31/2017		40,571,556		1.48	to		10.04		65,046,767		3.69			0.30		to	2.80			2.35		to	(0.13	)
12/31/2016		46,351,895		1.44	to		1.27		73,562,770		0.65			0.30		to	2.05			0.00		to	(1.71	)
12/31/2015		44,340,913		1.44	to		1.29		71,113,835		2.10			0.30		to	2.05			(0.20	)	to	(1.91	)
12/31/2014		53,809,524		1.45	to		1.32		87,871,181		3.98			0.30		to	2.05			4.34		to	2.55
TA Aegon U.S. Government Securities Service Class
12/31/2018		104,943,141		10.10	to		9.74		318,697,528		2.37			0.20		to	2.80			(0.19	)	to	(2.73	)
12/31/2017		90,224,835		10.11	to		10.02		198,887,348		2.79			0.20		to	2.80			2.05		to	(0.42	)
12/31/2016		139,466,169		1.27	to		1.05		384,537,007		0.43			0.30		to	2.45			(0.16	)	to	(2.25	)
12/31/2015		139,372,246		1.27	to		1.08		349,864,588		1.40			0.30		to	2.45			(0.47	)	to	(2.56	)
12/31/2014		117,104,047		1.28	to		1.10		211,171,453		3.42			0.30		to	2.45			4.11		to	1.92
TA American Funds Managed Risk - Balanced Service Class
12/31/2018		68,832,442		10.92	to		9.89		724,315,458		0.87			0.20		to	2.50			(6.01	)	to	(8.13	)
12/31/2017		57,652,094		11.62	to		10.77		652,612,767		0.63			0.20		to	2.50			14.11		to	11.84
12/31/2016		36,223,701		10.16	to		9.83		362,577,579		0.63			0.45		to	2.45			5.94		to	3.87
12/31/2015⁽¹⁾		12,571,779		9.59	to		9.46		119,855,246		—			0.45		to	2.45			—		to	—
TA Barrow Hanley Dividend Focused Initial Class
12/31/2018		131,850,813		1.91	to		9.65		298,896,926		2.12			0.30		to	2.80			(11.77	)	to	(13.93	)
12/31/2017		153,385,459		2.17	to		11.21		400,085,233		2.31			0.30		to	2.80			16.08		to	13.27
12/31/2016		160,020,752		1.87	to		2.04		363,999,021		2.15			0.30		to	2.05			14.57		to	12.61
12/31/2015		174,466,564		1.63	to		1.81		349,809,796		1.81			0.30		to	2.05			(3.88	)	to	(5.53	)
12/31/2014		218,849,432		1.69	to		1.92		461,315,863		1.33			0.30		to	2.05			11.83		to	9.92

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA Barrow Hanley Dividend Focused Service Class
12/31/2018		44,974,511	$	14.28	to	$	9.63	$	139,189,014		1.89	%		0.20	%	to	2.65	%		(11.86	)%	to	(13.98	)%
12/31/2017		54,139,799		16.20	to		11.20		184,816,342		2.18			0.20		to	2.65			15.09		to	13.14
12/31/2016		60,943,596		13.98	to		1.25		168,373,821		1.97			0.90		to	2.30			13.57		to	12.02
12/31/2015		63,543,533		12.31	to		1.12		145,023,856		1.69			0.90		to	2.30			(4.69	)	to	(5.99	)
12/31/2014		71,214,054		12.92	to		1.19		153,661,743		1.21			0.90		to	2.30			10.93		to	9.42
TA BlackRock Equity Smart Beta 100 Service Class
12/31/2018		2,916,657		12.26	to		10.56		34,919,921		1.17			0.20		to	2.50			(5.52	)	to	(7.65	)
12/31/2017		3,121,438		12.98	to		11.43		39,921,039		0.54			0.20		to	2.50			22.68		to	20.23
12/31/2016⁽¹⁾		2,202,649		10.55	to		10.39		23,122,979		—			0.45		to	2.45			—		to	—
TA BlackRock Global Allocation Service Class
12/31/2018		474,880,900		11.66	to		9.91		1,101,022,848		1.11			0.20		to	2.65			(7.81	)	to	(10.02	)
12/31/2017		559,095,448		12.65	to		11.02		1,370,732,763		1.08			0.20		to	2.65			12.99		to	10.57
12/31/2016		629,799,019		11.17	to		1.42		1,268,057,537		0.38			0.45		to	2.30			4.09		to	2.22
12/31/2015		685,402,691		10.73	to		1.39		1,178,176,425		1.68			0.45		to	2.30			(1.67	)	to	(3.45	)
12/31/2014		759,341,068		10.91	to		1.44		1,227,043,635		1.75			0.45		to	2.30			1.29		to	(0.63	)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class
12/31/2018		22,915,904		9.85	to		9.58		216,773,827		1.20			0.20		to	2.50			(7.95	)	to	(10.03	)
12/31/2017		19,095,805		10.70	to		10.64		198,315,259		0.68			0.20		to	2.50			12.00		to	9.77
12/31/2016		17,333,758		9.53	to		9.14		162,138,960		2.00			0.45		to	2.45			(0.08	)	to	(2.02	)
12/31/2015		13,579,678		9.54	to		9.33		128,198,295		—			0.45		to	2.45			(3.86	)	to	(5.73	)
12/31/2014⁽¹⁾		964,927		9.92	to		9.89		9,560,920		—			0.45		to	2.45			—		to	—
TA BlackRock Global Allocation Managed Risk - Growth Service Class
12/31/2018		19,120,004		9.79	to		9.68		179,399,574		1.26			0.20		to	2.50			(10.34	)	to	(12.37	)
12/31/2017		19,697,962		10.92	to		11.04		208,532,393		0.65			0.20		to	2.50			17.34		to	15.00
12/31/2016		18,505,605		9.28	to		8.90		168,412,121		2.10			0.45		to	2.45			(0.63	)	to	(2.57	)
12/31/2015		16,301,610		9.34	to		9.13		150,650,346		—			0.45		to	2.45			(5.48	)	to	(7.33	)
12/31/2014⁽¹⁾		1,085,461		9.88	to		9.85		10,712,850		—			0.45		to	2.45			—		to	—
TA BlackRock Global Real Estate Securities Initial Class
12/31/2018		15,318,064		1.64	to		9.60		35,691,673		8.46			0.30		to	2.80			(10.36	)	to	(12.55	)
12/31/2017		17,217,524		1.82	to		10.98		45,370,142		3.62			0.30		to	2.80			10.99		to	8.30
12/31/2016		18,463,874		1.64	to		2.35		44,536,161		1.76			0.30		to	2.05			0.32		to	(1.39	)
12/31/2015		20,659,242		1.64	to		2.38		50,028,208		4.17			0.30		to	2.05			(0.90	)	to	(2.60	)
12/31/2014		24,884,480		1.65	to		2.44		61,698,855		1.53			0.30		to	2.05			13.22		to	11.28
TA BlackRock Global Real Estate Securities Service Class
12/31/2018		27,015,414		10.02	to		9.59		68,224,055		7.97			0.20		to	2.65			(10.51	)	to	(12.65	)
12/31/2017		32,087,719		11.20	to		10.98		87,690,297		3.23			0.20		to	2.65			10.02		to	8.16
12/31/2016		36,306,707		10.11	to		0.98		84,311,623		1.41			0.90		to	2.30			(0.48	)	to	(1.83	)
12/31/2015		42,323,555		10.16	to		1.00		89,462,036		4.08			0.90		to	2.30			(1.76	)	to	(3.10	)
12/31/2014		49,196,924		10.34	to		1.03		92,625,420		1.31			0.90		to	2.30			12.28		to	10.75
TA BlackRock Government Money Market Initial Class
12/31/2018		87,727,125		1.12	to		9.63		92,736,566		1.79			0.30		to	2.80			1.50		to	(0.98	)
12/31/2017		81,612,286		1.10	to		9.72		89,165,490		0.01			0.30		to	2.80			(0.30	)	to	(2.71	)
12/31/2016		98,022,427		1.10	to		0.88		109,373,936		0.01			0.30		to	2.05			(0.30	)	to	(2.00	)
12/31/2015		104,356,069		1.11	to		0.90		118,060,897		0.01			0.30		to	2.05			(0.30	)	to	(2.00	)
12/31/2014		100,630,309		1.11	to		0.92		115,039,216		0.01			0.30		to	2.05			(0.30	)	to	(2.00	)
TA BlackRock Government Money Market Service Class
12/31/2018		169,823,809		9.88	to		9.56		339,881,056		0.85			0.20		to	2.65			0.64		to	(1.78	)
12/31/2017		167,094,546		9.82	to		9.74		296,558,369		0.01			0.20		to	2.65			(0.44	)	to	(2.57	)
12/31/2016		218,009,250		9.84	to		0.82		383,959,184		0.01			0.45		to	2.45			(0.44	)	to	(2.38	)
12/31/2015		239,832,076		9.88	to		0.84		383,764,535		0.01			0.45		to	2.45			(0.44	)	to	(2.39	)
12/31/2014		234,252,333		9.93	to		0.86		345,246,865		0.01			0.45		to	2.45			(0.44	)	to	(2.39	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA BlackRock Smart Beta 40 Initial Class
12/31/2018		10,486,812	$	1.54	to	$	9.97	$	16,837,445		1.90	%		0.30	%	to	2.80	%		(4.43	)%	to	(6.76	)%
12/31/2017		11,583,518		1.61	to		10.69		19,894,941		1.73			0.30		to	2.80			9.42		to	6.76
12/31/2016		13,620,346		1.48	to		1.50		21,495,544		1.45			0.30		to	2.05			1.92		to	0.18
12/31/2015		14,928,873		1.45	to		1.49		23,447,568		1.24			0.30		to	2.05			(0.37	)	to	(2.08	)
12/31/2014		18,258,426		1.45	to		1.53		29,143,207		1.00			0.30		to	2.05			5.24		to	3.44
TA BlackRock Smart Beta 40 Service Class
12/31/2018		132,547,925		11.24	to		9.95		277,272,924		1.65			0.20		to	2.65			(4.62	)	to	(6.91	)
12/31/2017		153,773,203		11.79	to		10.69		324,322,394		1.49			0.20		to	2.65			9.19		to	6.70
12/31/2016		181,601,690		1.27	to		1.11		339,898,668		1.25			0.30		to	2.45			1.69		to	(0.44	)
12/31/2015		200,324,935		1.25	to		1.12		346,241,255		1.06			0.30		to	2.45			(0.72	)	to	(2.80	)
12/31/2014		214,985,976		1.26	to		1.15		339,267,725		0.80			0.30		to	2.45			5.04		to	2.84
TA BlackRock Smart Beta 50 Service Class
12/31/2018		12,508,832		11.20	to		10.20		136,530,066		0.96			0.20		to	2.50			(2.82	)	to	(5.01	)
12/31/2017		5,580,252		11.52	to		10.74		63,218,179		0.74			0.20		to	2.50			12.34		to	10.10
12/31/2016⁽¹⁾		4,130,044		10.23	to		10.08		41,974,799		—			0.45		to	2.45			—		to	—
TA BlackRock Smart Beta 75 Service Class
12/31/2018		5,307,037		11.63	to		10.38		60,147,061		0.91			0.20		to	2.50			(4.10	)	to	(6.27	)
12/31/2017		2,206,073		12.13	to		11.07		26,367,946		0.46			0.20		to	2.50			17.44		to	15.10
12/31/2016⁽¹⁾		1,123,248		10.30	to		10.15		11,506,416		—			0.45		to	2.45			—		to	—
TA BlackRock Tactical Allocation Service Class
12/31/2018		420,090,936		12.28	to		10.09		1,233,781,924		0.97			0.20		to	2.80			(4.61	)	to	(7.03	)
12/31/2017		488,544,310		12.88	to		10.86		1,483,799,252		1.46			0.20		to	2.80			11.18		to	8.65
12/31/2016		544,782,967		11.55	to		1.34		1,444,210,976		2.31			0.45		to	2.30			4.44		to	2.56
12/31/2015		592,846,759		11.06	to		1.31		1,402,475,363		1.75			0.45		to	2.30			(0.57	)	to	(2.37	)
12/31/2014		644,924,677		11.13	to		1.34		1,394,587,714		1.32			0.45		to	2.30			4.60		to	2.71
TA Greystone International Growth Initial Class
12/31/2018		49,721,997		1.67	to		9.95		70,582,731		1.25			0.30		to	2.80			(17.95	)	to	(19.96	)
12/31/2017		49,776,559		2.04	to		12.43		86,501,729		1.33			0.30		to	2.80			26.87		to	23.79
12/31/2016		47,110,409		1.61	to		1.51		65,293,820		1.51			0.30		to	2.05			(0.22	)	to	(1.93	)
12/31/2015		51,016,252		1.61	to		1.54		71,124,446		1.55			0.30		to	2.05			(0.22	)	to	(1.93	)
12/31/2014		56,412,797		1.61	to		1.57		79,559,722		0.95			0.30		to	2.05			(5.46	)	to	(7.08	)
TA Greystone International Growth Service Class
12/31/2018		22,805,284		10.60	to		9.92		84,441,642		0.95			0.20		to	2.65			(18.11	)	to	(20.08	)
12/31/2017		29,599,165		12.95	to		12.41		116,136,840		1.17			0.20		to	2.65			25.85		to	23.72
12/31/2016		29,624,976		10.22	to		0.96		84,422,845		1.35			0.90		to	2.30			(1.03	)	to	(2.37	)
12/31/2015		32,894,815		10.33	to		0.99		82,697,711		1.54			0.90		to	2.30			(1.14	)	to	(2.49	)
12/31/2014		29,976,630		10.44	to		1.01		62,827,783		0.83			0.90		to	2.30			(6.26	)	to	(7.54	)
TA International Equity Index Service Class
12/31/2018		1,738,557		9.51	to		9.15		16,267,170		0.43			0.35		to	2.65			(14.53	)	to	(16.46	)
12/31/2017⁽¹⁾		628,764		11.12	to		10.96		6,948,109		—			0.35		to	2.65			—		to	—
TA Janus Balanced Service Class
12/31/2018		194,748,292		14.23	to		10.99		840,916,560		1.48			0.20		to	2.65			(0.27	)	to	(2.66	)
12/31/2017		194,033,939		14.27	to		11.29		836,976,066		1.32			0.20		to	2.65			16.21		to	13.73
12/31/2016		197,498,662		12.25	to		1.16		687,948,240		1.09			0.45		to	2.30			3.65		to	1.78
12/31/2015		192,034,411		11.82	to		1.14		562,408,813		0.84			0.45		to	2.30			(0.33	)	to	(2.13	)
12/31/2014		155,749,876		11.86	to		1.17		351,230,964		0.65			0.45		to	2.30			7.35		to	5.41
TA Janus Mid-Cap Growth Initial Class
12/31/2018		40,505,558		2.58	to		11.87		67,902,458		0.06			0.30		to	2.80			(1.51	)	to	(3.92	)
12/31/2017		43,015,893		2.62	to		12.36		73,761,288		0.10			0.30		to	2.80			28.62		to	25.51
12/31/2016		44,776,658		2.04	to		1.64		60,228,303		—			0.30		to	2.05			(2.34	)	to	(4.01	)
12/31/2015		49,518,695		2.09	to		1.71		69,124,473		—			0.30		to	2.05			(5.32	)	to	(6.94	)
12/31/2014		66,529,721		2.20	to		1.84		99,193,842		—			0.30		to	2.05			(0.28	)	to	(1.99	)

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA Janus Mid-Cap Growth Service Class
12/31/2018		20,363,814	$	14.02	to	$	11.85	$	86,366,801		—	%		0.20	%	to	2.65	%		(1.65	)%	to	(4.02	)%
12/31/2017		21,217,980		14.26	to		12.35		83,552,225		—			0.20		to	2.65			27.59		to	25.42
12/31/2016		22,970,554		11.10	to		1.32		63,321,902		—			0.90		to	2.30			(3.18	)	to	(4.49	)
12/31/2015		27,213,018		11.47	to		1.38		68,159,564		—			0.90		to	2.30			(6.11	)	to	(7.39	)
12/31/2014		28,962,016		12.21	to		1.49		69,299,132		—			0.90		to	2.30			(1.15	)	to	(2.50	)
TA Jennison Growth Initial Class
12/31/2018		83,798,752		3.00	to		12.62		192,694,337		0.02			0.30		to	2.80			(1.16	)	to	(3.58	)
12/31/2017		89,101,540		3.03	to		13.09		207,711,065		0.01			0.30		to	2.80			36.03		to	32.74
12/31/2016		95,799,898		2.23	to		1.95		165,555,512		—			0.30		to	2.05			(1.94	)	to	(3.62	)
12/31/2015		108,015,766		2.27	to		2.03		192,227,221		—			0.30		to	2.05			11.07		to	9.16
12/31/2014		135,122,880		2.05	to		1.86		218,374,436		—			0.30		to	2.05			9.63		to	7.75
TA Jennison Growth Service Class
12/31/2018		20,725,118		19.66	to		12.59		122,264,752		—			0.20		to	2.65			(1.34	)	to	(3.71	)
12/31/2017		23,745,417		19.93	to		13.07		127,186,720		—			0.20		to	2.65			34.82		to	32.53
12/31/2016		23,846,550		14.68	to		1.60		88,426,137		—			0.90		to	2.30			(2.78	)	to	(4.10	)
12/31/2015		29,476,122		15.10	to		1.67		96,681,000		—			0.90		to	2.30			10.12		to	8.61
12/31/2014		26,708,592		13.72	to		1.54		67,454,449		—			0.90		to	2.30			8.81		to	7.32
TA JPMorgan Asset Allocation - Conservative Initial Class
12/31/2018		87,232,931		1.68	to		10.25		146,643,478		1.84			0.30		to	2.80			(4.27	)	to	(6.61	)
12/31/2017		95,917,441		1.75	to		10.98		171,462,292		2.09			0.30		to	2.80			12.47		to	9.75
12/31/2016		110,451,298		1.56	to		1.51		176,881,894		2.02			0.30		to	2.05			4.31		to	2.53
12/31/2015		121,976,152		1.49	to		1.47		189,750,194		2.14			0.30		to	2.05			(2.25	)	to	(3.93	)
12/31/2014		149,407,114		1.53	to		1.53		239,339,037		2.63			0.30		to	2.05			1.88		to	0.14
TA JPMorgan Asset Allocation - Conservative Service Class
12/31/2018		372,496,615		11.62	to		10.23		910,676,358		1.58			0.20		to	2.65			(4.47	)	to	(6.77	)
12/31/2017		432,130,521		12.16	to		10.97		1,060,315,451		1.88			0.20		to	2.65			12.06		to	9.67
12/31/2016		491,730,606		10.83	to		1.10		1,021,657,645		1.80			0.45		to	2.45			3.84		to	1.82
12/31/2015		549,794,223		10.43	to		1.08		1,039,218,010		1.98			0.45		to	2.45			(2.58	)	to	(4.49	)
12/31/2014		626,987,083		10.70	to		1.13		1,091,927,020		2.46			0.45		to	2.45			1.49		to	(0.49	)
TA JPMorgan Asset Allocation - Growth Initial Class
12/31/2018		125,967,602		1.82	to		10.51		239,894,471		1.83			0.30		to	2.80			(10.66	)	to	(12.85	)
12/31/2017		138,715,582		2.03	to		12.06		298,478,723		1.44			0.30		to	2.80			24.26		to	21.25
12/31/2016		145,360,910		1.64	to		1.64		254,491,186		2.18			0.30		to	2.05			5.76		to	3.95
12/31/2015		163,079,906		1.55	to		1.58		273,043,029		1.55			0.30		to	2.05			(2.22	)	to	(3.90	)
12/31/2014		208,960,284		1.58	to		1.64		361,493,975		2.34			0.30		to	2.05			2.42		to	0.67
TA JPMorgan Asset Allocation - Growth Service Class
12/31/2018		62,042,687		13.44	to		10.49		179,178,132		1.64			0.20		to	2.65			(10.88	)	to	(13.02	)
12/31/2017		71,714,802		15.08	to		12.06		221,484,340		1.24			0.20		to	2.65			23.82		to	21.17
12/31/2016		80,740,471		12.15	to		1.06		184,665,448		1.91			0.45		to	2.30			5.35		to	3.45
12/31/2015		96,248,215		11.53	to		1.03		197,157,455		1.43			0.45		to	2.30			(2.55	)	to	(4.32	)
12/31/2014		104,915,264		11.83	to		1.07		203,683,787		2.23			0.45		to	2.30			1.98		to	0.13
TA JPMorgan Asset Allocation - Moderate Initial Class
12/31/2018		197,798,951		1.80	to		10.43		359,948,040		1.74			0.30		to	2.80			(5.41	)	to	(7.73	)
12/31/2017		214,216,713		1.90	to		11.30		416,447,113		1.86			0.30		to	2.80			16.12		to	13.30
12/31/2016		237,955,333		1.64	to		1.60		403,302,456		2.19			0.30		to	2.05			5.25		to	3.45
12/31/2015		257,314,477		1.56	to		1.55		418,714,217		1.92			0.30		to	2.05			(2.52	)	to	(4.19	)
12/31/2014		330,908,687		1.60	to		1.62		558,320,285		2.22			0.30		to	2.05			2.46		to	0.70
TA JPMorgan Asset Allocation - Moderate Service Class
12/31/2018		1,547,786,893		12.23	to		10.40		4,918,563,752		1.56			0.20		to	2.65			(5.54	)	to	(7.81	)
12/31/2017		1,721,740,775		12.95	to		11.29		5,252,747,161		1.65			0.20		to	2.65			15.60		to	13.13
12/31/2016		1,901,152,605		11.17	to		1.14		4,884,558,926		1.96			0.45		to	2.45			4.78		to	2.74
12/31/2015		2,105,107,064		10.66	to		1.11		5,033,408,915		1.84			0.45		to	2.45			(2.91	)	to	(4.81	)
12/31/2014		2,294,467,597		10.98	to		1.16		5,316,426,982		2.16			0.45		to	2.45			2.15		to	0.16

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA JPMorgan Asset Allocation - Moderate Growth Initial Class
12/31/2018		237,682,384	$	1.83	to	$	10.49	$	449,982,016		1.86	%		0.30	%	to	2.80	%		(7.35	)%	to	(9.62	)%
12/31/2017		253,563,185		1.98	to		11.60		524,868,709		1.71			0.30		to	2.80			19.42		to	16.52
12/31/2016		272,203,035		1.65	to		1.65		477,491,105		2.03			0.30		to	2.05			6.23		to	4.41
12/31/2015		299,130,616		1.56	to		1.58		499,970,785		2.09			0.30		to	2.05			(2.53	)	to	(4.20	)
12/31/2014		379,652,087		1.60	to		1.65		658,335,948		2.68			0.30		to	2.05			2.27		to	0.51
TA JPMorgan Asset Allocation - Moderate Growth Service Class
12/31/2018		1,233,418,891		12.86	to		10.47		3,113,335,571		1.65			0.20		to	2.65			(7.51	)	to	(9.73	)
12/31/2017		1,392,455,162		13.90	to		11.59		3,718,610,494		1.52			0.20		to	2.65			18.96		to	16.42
12/31/2016		1,528,662,864		11.66	to		1.15		3,249,120,855		1.78			0.45		to	2.45			5.78		to	3.72
12/31/2015		1,697,285,643		11.02	to		1.11		3,272,645,909		1.98			0.45		to	2.45			(2.96	)	to	(4.85	)
12/31/2014		1,876,616,300		11.36	to		1.17		3,454,997,510		2.50			0.45		to	2.45			1.99		to	(0.00	)
TA JPMorgan Core Bond Service Class
12/31/2018		65,985,037		10.56	to		9.85		232,204,364		2.91			0.20		to	2.65			(0.29	)	to	(2.68	)
12/31/2017		72,762,576		10.60	to		10.12		234,929,539		2.56			0.20		to	2.65			2.96		to	0.76
12/31/2016		84,929,968		10.27	to		1.02		225,404,212		1.90			0.45		to	2.30			1.60		to	(0.23	)
12/31/2015		80,427,225		10.10	to		1.03		173,901,984		1.82			0.45		to	2.30			(0.11	)	to	(1.92	)
12/31/2014		83,188,018		10.12	to		1.05		139,476,584		1.77			0.45		to	2.30			4.63		to	2.74
TA JPMorgan Enhanced Index Initial Class
12/31/2018		44,289,570		2.46	to		10.64		111,021,328		1.10			0.30		to	2.80			(6.29	)	to	(8.59	)
12/31/2017		46,939,835		2.63	to		11.64		127,335,985		0.56			0.30		to	2.80			20.79		to	17.86
12/31/2016		46,917,262		2.18	to		1.98		106,614,195		0.41			0.30		to	2.05			11.02		to	9.12
12/31/2015		49,201,659		1.96	to		1.82		101,285,585		0.93			0.30		to	2.05			(0.37	)	to	(2.08	)
12/31/2014		56,840,615		1.97	to		1.85		117,249,774		0.81			0.30		to	2.05			13.84		to	11.89
TA JPMorgan Enhanced Index Service Class
12/31/2018		10,181,659		16.33	to		10.61		57,236,560		0.87			0.20		to	2.65			(6.43	)	to	(8.68	)
12/31/2017		12,493,704		17.46	to		11.62		67,683,559		0.41			0.20		to	2.65			19.74		to	17.71
12/31/2016		13,075,401		14.48	to		1.47		51,966,255		0.18			0.90		to	2.30			10.13		to	8.63
12/31/2015		12,638,230		13.15	to		1.36		39,714,319		0.85			0.90		to	2.30			(1.25	)	to	(2.60	)
12/31/2014		13,180,874		13.32	to		1.39		36,235,761		0.66			0.90		to	2.30			12.95		to	11.41
TA JPMorgan International Moderate Growth Initial Class
12/31/2018		68,581		1.26	to		10.14		84,487		2.40			0.30		to	2.50			(11.85	)	to	(13.75	)
12/31/2017		68,027		1.42	to		11.76		95,215		1.82			0.30		to	2.50			21.42		to	21.24
12/31/2016		69,400		1.17	to		1.15		80,122		2.15			0.30		to	0.45			0.92		to	0.77
12/31/2015		68,181		1.16	to		1.15		78,116		1.96			0.30		to	0.45			(1.93	)	to	(2.08	)
12/31/2014		68,194		1.19	to		1.17		79,791		2.28			0.30		to	0.45			(0.77	)	to	(0.92	)
TA JPMorgan International Moderate Growth Service Class
12/31/2018		300,953,145		11.00	to		10.15		537,377,054		2.15			0.20		to	2.80			(12.09	)	to	(14.32	)
12/31/2017		334,110,132		12.51	to		11.85		660,356,626		1.62			0.20		to	2.80			20.93		to	18.17
12/31/2016		358,429,603		10.32	to		0.92		551,114,925		1.85			0.45		to	2.45			0.62		to	(1.33	)
12/31/2015		406,136,679		10.26	to		0.93		595,453,089		1.79			0.45		to	2.45			(2.32	)	to	(4.23	)
12/31/2014		425,154,870		10.50	to		0.98		560,090,151		2.11			0.45		to	2.45			(1.23	)	to	(3.16	)
TA JPMorgan Mid Cap Value Service Class
12/31/2018		44,054,769		14.61	to		9.29		186,121,537		0.64			0.20		to	2.80			(12.27	)	to	(14.50	)
12/31/2017		49,949,595		16.66	to		10.86		234,010,120		0.60			0.20		to	2.80			12.68		to	10.11
12/31/2016		52,307,287		14.75	to		2.21		198,647,207		1.97			0.45		to	2.30			13.77		to	11.71
12/31/2015		49,562,775		12.96	to		1.98		157,156,789		0.75			0.45		to	2.30			(3.37	)	to	(5.12	)
12/31/2014		51,842,761		13.41	to		2.09		151,741,957		0.60			0.45		to	2.30			14.47		to	12.40

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA JPMorgan Tactical Allocation Service Class
12/31/2018		290,764,551	$	11.56	to	$	9.97	$	1,151,582,075		1.88	%		0.20	%	to	2.65	%		(3.38	)%	to	(5.70	)%
12/31/2017		336,938,291		11.96	to		10.57		1,290,836,386		1.59			0.20		to	2.65			8.02		to	5.71
12/31/2016		379,479,465		11.05	to		1.10		1,253,888,489		1.15			0.45		to	2.30			3.73		to	1.86
12/31/2015		388,440,348		10.65	to		1.08		1,097,074,756		1.14			0.45		to	2.30			(0.85	)	to	(2.64	)
12/31/2014		374,130,018		10.74	to		1.11		825,197,475		0.95			0.45		to	2.30			5.81		to	3.89
TA Legg Mason Dynamic Allocation - Balanced Service Class
12/31/2018		211,305,384		11.48	to		1.03		987,628,491		1.40			0.20		to	2.50			(3.51	)	to	(5.72	)
12/31/2017		240,726,764		11.90	to		1.09		1,134,168,274		1.13			0.20		to	2.50			9.97		to	7.78
12/31/2016		290,004,410		10.79	to		1.07		1,174,416,752		1.09			0.45		to	2.05			(1.11	)	to	(2.66	)
12/31/2015		303,800,980		10.91	to		1.10		1,125,801,306		0.92			0.45		to	2.05			(2.51	)	to	(4.04	)
12/31/2014		249,433,962		11.19	to		1.15		738,870,798		0.66			0.45		to	2.05			8.00		to	6.30
TA Legg Mason Dynamic Allocation - Growth Service Class
12/31/2018		99,265,335		11.89	to		1.13		430,016,813		1.22			0.20		to	2.50			(4.92	)	to	(7.10	)
12/31/2017		111,240,123		12.50	to		1.22		502,210,785		0.98			0.20		to	2.50			12.70		to	10.45
12/31/2016		132,145,826		11.07	to		1.11		513,884,084		1.03			0.45		to	2.05			(1.43	)	to	(2.97	)
12/31/2015		149,681,980		11.23	to		1.14		528,608,149		0.69			0.45		to	2.05			(3.38	)	to	(4.90	)
12/31/2014		99,859,668		11.62	to		1.20		297,102,967		0.57			0.45		to	2.05			7.69		to	6.00
TA Levin Large Cap Value Service Class
12/31/2018⁽¹⁾		323,389		9.03	to		8.90		2,100,210		0.19			0.20		to	2.50			—		to	—
TA Madison Balanced Allocation Service Class
12/31/2018		35,654,782		11.84	to		9.93		97,805,291		1.92			1.15		to	2.50			(4.98	)	to	(6.23	)
12/31/2017		39,781,670		12.46	to		10.59		111,712,711		1.77			1.15		to	2.50			10.14		to	8.70
12/31/2016		41,735,960		11.31	to		1.19		105,012,541		1.84			1.15		to	1.90			4.05		to	3.28
12/31/2015		43,365,220		10.87	to		1.15		98,601,791		1.83			1.15		to	1.90			(1.87	)	to	(2.60	)
12/31/2014		44,591,131		11.08	to		1.18		94,800,820		0.69			1.15		to	1.90			4.53		to	3.75
TA Madison Conservative Allocation Service Class
12/31/2018		28,250,139		11.02	to		9.93		62,990,806		2.04			1.15		to	2.50			(3.08	)	to	(4.36	)
12/31/2017		31,298,178		11.37	to		10.39		70,949,339		1.94			1.15		to	2.50			6.98		to	5.59
12/31/2016		34,682,524		10.62	to		1.10		73,017,096		2.05			1.15		to	1.90			2.90		to	2.14
12/31/2015		38,496,050		10.32	to		1.08		74,112,509		1.72			1.15		to	1.90			(1.88	)	to	(2.61	)
12/31/2014		41,143,456		10.52	to		1.11		74,746,336		1.32			1.15		to	1.90			3.56		to	2.78
TA Madison Diversified Income Service Class
12/31/2018		50,863,663		12.08	to		10.18		135,787,858		1.47			0.20		to	2.50			(0.95	)	to	(3.19	)
12/31/2017		53,981,023		12.19	to		10.51		130,445,023		1.60			0.20		to	2.50			8.28		to	6.86
12/31/2016		55,129,242		11.20	to		1.20		115,967,502		1.32			1.15		to	1.90			5.62		to	4.83
12/31/2015		57,334,171		10.60	to		1.14		109,758,408		1.03			1.15		to	1.90			(1.00	)	to	(1.74	)
12/31/2014		59,704,752		10.71	to		1.16		105,588,057		0.70			1.15		to	1.90			4.60		to	3.82
TA Managed Risk - Balanced ETF Service Class
12/31/2018		1,309,690,461		11.96	to		10.23		5,298,234,531		1.68			0.20		to	2.80			(4.74	)	to	(7.16	)
12/31/2017		1,473,800,978		12.56	to		11.02		6,047,882,818		1.68			0.20		to	2.80			13.10		to	10.36
12/31/2016		1,640,125,949		1.36	to		1.13		5,673,175,806		1.65			0.30		to	2.45			3.44		to	1.28
12/31/2015		1,749,801,079		1.31	to		1.11		5,493,942,298		1.28			0.30		to	2.45			(2.06	)	to	(4.12	)
12/31/2014		1,756,579,111		1.34	to		1.16		4,522,734,970		0.95			0.30		to	2.45			4.24		to	2.05
TA Managed Risk - Conservative ETF Service Class
12/31/2018		245,869,418		11.78	to		10.14		671,687,849		1.79			0.20		to	2.80			(3.79	)	to	(6.24	)
12/31/2017		280,713,603		12.25	to		10.81		771,558,640		1.82			0.20		to	2.80			10.54		to	8.02
12/31/2016		324,381,240		11.05	to		1.18		777,003,480		1.61			0.45		to	2.45			3.61		to	1.59
12/31/2015		344,902,729		10.67	to		1.17		734,076,985		1.52			0.45		to	2.45			(1.13	)	to	(3.06	)
12/31/2014		363,756,951		10.79	to		1.20		674,485,127		1.28			0.45		to	2.45			4.77		to	2.73

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA Managed Risk - Growth ETF Service Class
12/31/2018		857,934,001	$	12.52	to	$	10.36	$	2,384,647,311		1.59	%		0.20	%	to	2.80	%		(7.34	)%	to	(9.70	)%
12/31/2017		1,000,647,147		13.52	to		11.47		2,942,924,332		1.61			0.20		to	2.80			18.12		to	15.25
12/31/2016		1,128,966,441		1.36	to		1.13		2,699,674,301		1.61			0.30		to	2.45			4.36		to	2.17
12/31/2015		1,301,705,474		1.30	to		1.11		2,828,869,757		1.46			0.30		to	2.45			(3.80	)	to	(5.82	)
12/31/2014		1,447,006,616		1.35	to		1.18		2,857,654,356		1.03			0.30		to	2.45			3.66		to	1.48
TA Market Participation Strategy Service Class
12/31/2018		87,219,115		12.63	to		10.16		382,090,653		0.36			0.20		to	2.50			(2.92	)	to	(5.12	)
12/31/2017		93,693,820		13.01	to		10.71		434,408,630		0.31			0.20		to	2.50			10.30		to	8.10
12/31/2016		112,269,327		11.77	to		1.13		453,011,302		0.16			0.45		to	2.05			3.70		to	2.07
12/31/2015		117,968,861		11.35	to		1.11		452,767,371		—			0.45		to	2.05			(3.68	)	to	(5.19	)
12/31/2014		111,054,031		11.78	to		1.17		418,144,147		—			0.45		to	2.05			7.56		to	5.87
TA Morgan Stanley Capital Growth Initial Class
12/31/2018		42,679,256		3.46	to		14.24		134,713,516		—			0.30		to	2.80			6.36		to	3.76
12/31/2017		42,128,648		3.26	to		13.73		126,618,578		—			0.30		to	2.80			43.17		to	39.70
12/31/2016		43,698,169		2.27	to		2.05		92,915,246		—			0.30		to	2.05			(2.56	)	to	(4.22	)
12/31/2015		47,282,114		2.33	to		2.14		104,267,818		—			0.30		to	2.05			11.45		to	9.54
12/31/2014		59,235,134		2.09	to		1.96		118,184,347		—			0.30		to	2.05			5.69		to	3.87
TA Morgan Stanley Capital Growth Service Class
12/31/2018		14,619,393		23.24	to		14.21		108,734,790		—			0.20		to	2.65			6.22		to	3.67
12/31/2017		14,528,067		21.88	to		13.71		91,705,626		—			0.20		to	2.65			41.99		to	39.58
12/31/2016		13,431,257		15.30	to		1.54		53,195,806		—			0.90		to	2.30			(3.37	)	to	(4.69	)
12/31/2015		15,649,714		15.84	to		1.61		53,335,138		—			0.90		to	2.30			10.45		to	8.95
12/31/2014		12,651,656		14.34	to		1.48		34,839,910		—			0.90		to	2.30			4.84		to	3.41
TA Multi-Managed Balanced Initial Class
12/31/2018		35,336,427		2.36	to		10.35		84,092,450		1.44			0.30		to	2.80			(3.95	)	to	(6.30	)
12/31/2017		36,409,215		2.46	to		11.05		91,688,505		0.86			0.30		to	2.80			13.80		to	11.04
12/31/2016		35,420,588		2.16	to		2.08		79,027,923		0.97			0.30		to	2.50			7.55		to	5.25
12/31/2015		34,089,325		2.01	to		1.98		71,558,086		1.35			0.30		to	2.50			(0.09	)	to	(1.80	)
12/31/2014		34,836,857		2.01	to		2.02		73,575,633		1.41			0.30		to	2.05			10.48		to	8.58
TA Multi-Managed Balanced Service Class
12/31/2018		213,053,682		13.97	to		10.33		1,113,804,034		1.21			0.20		to	2.65			(4.10	)	to	(6.40	)
12/31/2017		245,736,768		14.56	to		11.03		1,284,175,277		0.79			0.20		to	2.65			13.48		to	10.89
12/31/2016		219,709,404		1.82	to		1.53		904,843,654		0.93			0.30		to	2.45			7.32		to	5.07
12/31/2015		143,153,566		1.70	to		1.46		347,407,856		1.16			0.30		to	2.45			(0.36	)	to	(2.45	)
12/31/2014		134,975,301		1.71	to		1.49		270,653,285		1.19			0.30		to	2.45			10.17		to	7.86
TA Multi-Manager Alternative Strategies Service Class
12/31/2018		294,271		9.96	to		9.46		2,811,857		0.89			0.20		to	2.50			(4.82	)	to	(7.00	)
12/31/2017		166,567		10.46	to		10.17		1,693,399		1.28			0.20		to	2.50			4.29		to	3.05
12/31/2016		163,253		10.01	to		9.64		1,601,107		2.52			0.45		to	1.65			1.56		to	0.35
12/31/2015		181,063		9.85	to		9.60		1,760,776		0.36			0.45		to	1.65			(6.03	)	to	(7.15	)
12/31/2014		98,872		10.49	to		10.34		1,029,166		0.68			0.45		to	1.65			2.49		to	1.27
TA PIMCO Tactical - Balanced Service Class
12/31/2018		152,110,362		11.92	to		9.90		514,523,316		3.19			0.20		to	2.65			(7.12	)	to	(9.35	)
12/31/2017		172,652,804		12.84	to		10.92		628,788,296		0.30			0.20		to	2.65			11.54		to	9.15
12/31/2016		192,663,294		11.48	to		1.01		610,151,653		0.29			0.45		to	2.30			4.91		to	3.02
12/31/2015		194,833,059		10.95	to		0.98		571,936,975		—			0.45		to	2.30			(2.98	)	to	(4.74	)
12/31/2014		195,521,348		11.28	to		1.03		533,120,857		1.07			0.45		to	2.30			7.35		to	5.41
TA PIMCO Tactical - Conservative Service Class
12/31/2018		69,943,022		11.77	to		9.94		237,796,879		3.31			0.20		to	2.65			(5.34	)	to	(7.61	)
12/31/2017		79,062,157		12.44	to		10.76		282,866,000		1.29			0.20		to	2.65			9.90		to	7.55
12/31/2016		87,765,386		11.29	to		0.97		273,382,211		0.41			0.45		to	2.30			4.51		to	2.62
12/31/2015		84,100,322		10.80	to		0.94		223,359,365		0.30			0.45		to	2.30			(2.52	)	to	(4.28	)
12/31/2014		72,728,605		11.08	to		0.99		132,338,428		1.23			0.45		to	2.30			8.24		to	6.28

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA PIMCO Tactical - Growth Service Class
12/31/2018		77,403,230	$	12.20	to	$	10.03	$	311,059,978		3.06	%		0.20	%	to	2.65	%		(7.87	)%	to	(10.08	)%
12/31/2017		89,424,879		13.24	to		11.15		373,518,260		0.40			0.20		to	2.65			14.31		to	11.87
12/31/2016		97,932,555		11.55	to		0.97		334,243,979		—			0.45		to	2.30			4.40		to	2.52
12/31/2015		99,906,894		11.07	to		0.94		288,604,027		—			0.45		to	2.30			(3.89	)	to	(5.63	)
12/31/2014		77,908,150		11.51	to		1.00		171,846,465		1.80			0.45		to	2.30			5.92		to	4.00
TA PIMCO Total Return Initial Class
12/31/2018		100,615,759		1.65	to		9.94		157,867,721		2.61			0.30		to	2.80			(0.95	)	to	(3.38	)
12/31/2017		108,525,289		1.67	to		10.29		174,652,447		—			0.30		to	2.80			4.57		to	2.04
12/31/2016		116,273,391		1.59	to		1.46		181,319,170		2.37			0.30		to	2.05			2.41		to	0.65
12/31/2015		125,233,326		1.56	to		1.45		192,941,918		2.51			0.30		to	2.05			0.39		to	(1.33	)
12/31/2014		158,410,090		1.55	to		1.47		245,905,910		1.89			0.30		to	2.05			4.36		to	2.57
TA PIMCO Total Return Service Class
12/31/2018		331,762,980		10.46	to		9.92		717,759,315		2.40			0.20		to	2.65			(1.22	)	to	(3.59	)
12/31/2017		381,085,363		10.58	to		10.29		803,609,896		—			0.20		to	2.65			4.33		to	1.95
12/31/2016		432,200,049		1.34	to		1.11		826,905,164		2.20			0.30		to	2.45			2.17		to	0.03
12/31/2015		475,137,309		1.31	to		1.11		833,576,453		2.54			0.30		to	2.45			0.22		to	(1.89	)
12/31/2014		530,733,545		1.31	to		1.13		859,856,281		1.62			0.30		to	2.45			4.03		to	1.84
TA PineBridge Inflation Opportunities Service Class
12/31/2018		80,400,948		9.31	to		9.71		154,495,130		1.69			0.20		to	2.65			(1.74	)	to	(4.10	)
12/31/2017		90,816,209		9.48	to		10.12		173,872,830		0.23			0.20		to	2.65			2.67		to	0.48
12/31/2016		101,867,579		9.21	to		0.95		175,347,485		0.58			0.45		to	2.30			3.34		to	1.47
12/31/2015		110,195,164		8.91	to		0.94		178,257,154		1.24			0.45		to	2.30			(3.30	)	to	(5.05	)
12/31/2014		121,100,596		9.22	to		0.98		182,242,932		0.29			0.45		to	2.30			2.92		to	1.05
TA ProFunds UltraBear Service Class (OAM)
12/31/2018		824,917,799		0.14	to		7.04		35,025,006		—			0.45		to	2.65			6.06		to	3.76
12/31/2017		325,897,312		0.13	to		6.79		13,176,394		—			0.45		to	2.65			(32.66	)	to	(34.10	)
12/31/2016		557,626,487		0.19	to		0.06		33,857,197		—			0.45		to	2.00			(23.94	)	to	(25.08	)
12/31/2015		406,801,801		0.25	to		0.08		32,809,667		—			0.45		to	2.00			(7.71	)	to	(9.10	)
12/31/2014		204,831,841		0.27	to		0.09		18,066,570		—			0.45		to	2.00			(25.91	)	to	(27.04	)
TA QS Investors Active Asset Allocation - Conservative Service Class
12/31/2018		141,754,097		11.34	to		10.29		347,965,665		1.59			0.20		to	2.65			(3.08	)	to	(5.41	)
12/31/2017		167,288,266		11.70	to		10.88		413,363,455		1.72			0.20		to	2.65			11.20		to	8.82
12/31/2016		201,671,367		10.50	to		1.06		425,136,568		1.26			0.45		to	2.45			2.19		to	0.20
12/31/2015		225,250,178		10.27	to		1.05		432,962,686		1.01			0.45		to	2.45			(2.80	)	to	(4.70	)
12/31/2014		245,264,820		10.57	to		1.11		413,140,719		1.06			0.45		to	2.45			3.14		to	1.13
TA QS Investors Active Asset Allocation - Moderate Service Class
12/31/2018		382,230,157		11.56	to		10.48		1,333,011,023		1.44			0.20		to	2.65			(4.36	)	to	(6.66	)
12/31/2017		433,032,803		12.09	to		11.23		1,515,657,257		1.55			0.20		to	2.65			14.93		to	12.47
12/31/2016		492,652,371		10.50	to		1.04		1,448,789,251		1.23			0.45		to	2.50			1.73		to	(0.30	)
12/31/2015		545,348,810		10.32	to		1.04		1,537,126,518		0.97			0.45		to	2.50			(4.71	)	to	(6.61	)
12/31/2014		581,745,788		10.83	to		1.11		1,586,689,643		0.67			0.45		to	2.50			3.15		to	1.29
TA QS Investors Active Asset Allocation - Moderate Growth Service Class
12/31/2018		195,359,095		11.86	to		10.69		540,380,113		1.31			0.20		to	2.65			(6.14	)	to	(8.39	)
12/31/2017		225,073,336		12.63	to		11.67		650,551,880		1.28			0.20		to	2.65			19.77		to	17.21
12/31/2016		254,015,317		10.52	to		1.04		591,439,085		1.07			0.45		to	2.30			1.51		to	(0.32	)
12/31/2015		297,221,724		10.37	to		1.04		646,874,469		1.01			0.45		to	2.30			(6.95	)	to	(8.64	)
12/31/2014		328,199,796		11.14	to		1.14		650,876,591		0.77			0.45		to	2.30			2.76		to	0.90
TA Small/Mid Cap Value Initial Class
12/31/2018		20,576,048		2.39	to		9.53		105,244,710		0.89			0.30		to	2.80			(11.72	)	to	(13.88	)
12/31/2017		22,801,173		2.71	to		11.07		135,391,174		1.13			0.30		to	2.80			15.21		to	12.42
12/31/2016		24,866,417		2.35	to		3.68		129,843,084		0.78			0.30		to	2.05			20.76		to	18.70
12/31/2015		28,487,599		1.94	to		3.10		123,688,215		0.98			0.30		to	2.05			(2.80	)	to	(4.47	)
12/31/2014		35,048,217		2.00	to		3.25		156,210,025		0.77			0.30		to	2.05			4.91		to	3.11

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA Small/Mid Cap Value Service Class
12/31/2018		28,152,654	$	14.84	to	$	9.51	$	105,380,785		0.68	%		0.20	%	to	2.65	%		(11.81	)%	to	(13.93	)%
12/31/2017		33,142,579		16.83	to		11.05		129,538,718		0.97			0.20		to	2.65			14.23		to	12.29
12/31/2016		37,602,330		14.63	to		1.92		111,710,832		0.54			0.90		to	2.30			19.73		to	18.10
12/31/2015		37,708,384		12.22	to		1.63		88,569,777		0.81			0.90		to	2.30			(3.60	)	to	(4.92	)
12/31/2014		41,438,730		12.68	to		1.71		91,247,465		0.63			0.90		to	2.30			3.99		to	2.57
TA T. Rowe Price Small Cap Initial Class
12/31/2018		43,487,831		3.14	to		10.62		114,179,188		—			0.30		to	2.80			(7.36	)	to	(9.63	)
12/31/2017		45,509,419		3.39	to		11.75		129,784,292		—			0.30		to	2.80			22.02		to	19.07
12/31/2016		47,515,529		2.78	to		2.65		112,290,331		—			0.30		to	2.05			10.89		to	8.99
12/31/2015		50,302,232		2.51	to		2.43		108,382,266		—			0.30		to	2.05			2.13		to	0.38
12/31/2014		59,507,563		2.46	to		2.42		126,270,687		—			0.30		to	2.05			6.23		to	4.41
TA T. Rowe Price Small Cap Service Class
12/31/2018		33,335,132		17.06	to		10.60		210,676,582		—			0.20		to	2.65			(7.47	)	to	(9.69	)
12/31/2017		37,785,697		18.43	to		11.74		241,993,274		—			0.20		to	2.65			20.93		to	18.88
12/31/2016		40,379,882		15.14	to		1.97		191,512,774		—			0.90		to	2.30			10.01		to	8.51
12/31/2015		42,516,500		13.76	to		1.82		166,716,242		—			0.90		to	2.30			1.24		to	(0.14	)
12/31/2014		41,706,081		13.60	to		1.82		141,930,797		—			0.90		to	2.30			5.29		to	3.86
TA Torray Concentrated Growth Initial Class
12/31/2018		37,336,127		2.63	to		11.19		131,167,696		0.22			0.30		to	2.80			(3.85	)	to	(6.20	)
12/31/2017		41,463,687		2.73	to		11.93		157,200,873		0.38			0.30		to	2.80			24.35		to	21.33
12/31/2016		45,742,580		2.20	to		2.08		141,507,483		0.48			0.30		to	2.05			6.42		to	4.60
12/31/2015		50,917,336		2.06	to		1.99		150,665,726		0.52			0.30		to	2.05			(1.87	)	to	(3.55	)
12/31/2014		63,395,151		2.10	to		2.06		191,072,993		0.88			0.30		to	2.05			9.67		to	7.79
TA Torray Concentrated Growth Service Class
12/31/2018		7,803,220		15.90	to		11.16		31,969,338		—			0.20		to	2.65			(4.06	)	to	(6.36	)
12/31/2017		9,771,712		16.57	to		11.92		40,766,360		0.15			0.20		to	2.65			23.30		to	21.21
12/31/2016		11,214,378		13.35	to		1.45		32,531,628		0.14			0.90		to	2.30			5.52		to	4.09
12/31/2015		12,966,791		12.65	to		1.39		32,981,418		0.31			0.90		to	2.30			(2.72	)	to	(4.04	)
12/31/2014		15,772,261		13.00	to		1.45		36,258,952		0.67			0.90		to	2.30			8.76		to	7.28
TA TS&W International Equity Initial Class
12/31/2018		42,739,151		1.54	to		9.84		73,746,197		2.44			0.30		to	2.80			(15.78	)	to	(17.84	)
12/31/2017		40,975,824		1.83	to		11.98		85,535,379		2.19			0.30		to	2.80			22.54		to	19.57
12/31/2016		41,696,215		1.49	to		1.56		71,904,972		2.76			0.30		to	2.05			0.78		to	(0.95	)
12/31/2015		44,322,070		1.48	to		1.57		76,568,954		2.98			0.30		to	2.05			1.01		to	(0.72	)
12/31/2014		50,729,871		1.46	to		1.59		87,463,695		2.35			0.30		to	2.05			(5.47	)	to	(7.09	)
TA TS&W International Equity Service Class
12/31/2018		12,291,177		10.89	to		9.82		35,983,797		2.20			0.20		to	2.65			(15.87	)	to	(17.89	)
12/31/2017		13,819,574		12.94	to		11.96		43,576,774		2.01			0.20		to	2.65			21.56		to	19.50
12/31/2016		13,541,992		10.58	to		0.86		34,110,738		2.57			0.90		to	2.30			(0.13	)	to	(1.49	)
12/31/2015		16,788,573		10.59	to		0.87		36,053,774		2.99			0.90		to	2.30			0.13		to	(1.23	)
12/31/2014		15,903,634		10.58	to		0.88		29,124,189		2.20			0.90		to	2.30			(6.23	)	to	(7.51	)
TA U.S. Equity Index Service Class
12/31/2018		4,460,433		10.69	to		10.29		46,909,805		0.24			0.35		to	2.65			(5.32	)	to	(7.46	)
12/31/2017⁽¹⁾		1,656,725		11.29	to		11.12		18,585,620		—			0.35		to	2.65			—		to	—
TA WMC US Growth Initial Class
12/31/2018		125,844,251		2.43	to		12.04		249,568,122		0.48			0.30		to	2.80			(0.09	)	to	(2.53	)
12/31/2017		139,553,543		2.44	to		12.35		276,903,733		0.42			0.30		to	2.80			28.81		to	25.69
12/31/2016		152,376,830		1.89	to		1.36		236,978,354		0.40			0.30		to	2.30			2.50		to	0.50
12/31/2015		168,111,201		1.85	to		1.35		257,886,335		0.70			0.30		to	2.30			6.53		to	4.45
12/31/2014		206,111,980		1.73	to		1.29		301,151,694		0.88			0.30		to	2.30			10.77		to	8.61

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA WMC US Growth Service Class
12/31/2018		24,232,577	$	18.15	to	$	12.02	$	113,091,417		0.28	%		0.20	%	to	2.65	%		(0.23	)%	to	(2.63	)%
12/31/2017		28,142,974		18.19	to		12.34		123,555,754		0.21			0.20		to	2.65			27.71		to	25.55
12/31/2016		31,337,681		14.15	to		1.26		98,349,420		0.18			0.90		to	2.30			1.62		to	0.24
12/31/2015		33,875,319		13.92	to		1.26		96,971,678		0.54			0.90		to	2.30			5.66		to	4.21
12/31/2014		32,953,962		13.18	to		1.21		77,258,557		0.70			0.90		to	2.30			9.84		to	8.34
Vanguard^® Equity Index
12/31/2018		1,183,932		2.06	to		10.90		4,075,298		1.62			0.30		to	2.50			(4.79	)	to	(6.85	)
12/31/2017		813,744		2.17	to		11.70		3,788,631		1.63			0.30		to	2.50			21.29		to	20.45
12/31/2016		411,968		1.79	to		1.74		1,920,746		2.45			0.30		to	1.00			11.48		to	10.70
12/31/2015		462,855		1.60	to		1.57		1,852,623		1.41			0.30		to	1.00			0.96		to	0.26
12/31/2014		476,937		1.59	to		1.57		948,899		1.65			0.30		to	1.00			13.17		to	12.38
Vanguard^® International
12/31/2018		567,663		1.45	to		11.63		1,859,489		0.82			0.30		to	2.70			(12.88	)	to	(14.93	)
12/31/2017		767,522		1.66	to		13.67		2,310,758		0.93			0.30		to	2.70			42.25		to	41.26
12/31/2016		441,335		1.17	to		1.05		1,229,545		1.47			0.30		to	1.00			1.57		to	0.87
12/31/2015		426,145		1.15	to		1.04		1,169,229		1.30			0.30		to	1.00			(1.06	)	to	(1.76	)
12/31/2014		390,264		1.16	to		1.06		424,932		1.53			0.30		to	1.00			(6.34	)	to	(6.99	)
Vanguard^® Mid-Cap Index
12/31/2018		332,115		1.99	to		10.03		1,356,724		1.21			0.30		to	2.70			(9.60	)	to	(11.73	)
12/31/2017		389,324		2.20	to		11.36		1,395,425		1.05			0.30		to	2.70			18.72		to	17.90
12/31/2016		243,199		1.85	to		1.62		845,838		1.52			0.30		to	1.00			10.78		to	10.01
12/31/2015		316,319		1.67	to		1.48		888,668		0.88			0.30		to	1.00			(1.73	)	to	(2.42	)
12/31/2014		249,421		1.70	to		1.51		427,668		0.93			0.30		to	1.00			13.25		to	12.46
Vanguard^® Real Estate Index
12/31/2018		143,459		1.52	to		9.26		452,464		3.03			0.30		to	2.50			(5.64	)	to	(7.67	)
12/31/2017		149,622		1.61	to		10.03		459,283		2.34			0.30		to	2.50			4.46		to	3.74
12/31/2016		136,899		1.54	to		1.58		358,742		2.67			0.30		to	1.00			8.03		to	7.28
12/31/2015		150,260		1.43	to		1.47		350,033		1.66			0.30		to	1.00			1.92		to	1.21
12/31/2014		174,728		1.40	to		1.45		315,866		3.46			0.30		to	1.00			29.72		to	28.82
Vanguard^® Short-Term Investment Grade
12/31/2018		828,787		1.36	to		9.77		3,028,267		1.75			0.30		to	2.70			0.74		to	(1.63	)
12/31/2017		878,234		1.35	to		9.94		2,959,813		1.95			0.30		to	2.70			1.79		to	1.08
12/31/2016		1,010,860		1.33	to		1.06		2,717,920		1.92			0.30		to	1.00			2.41		to	1.70
12/31/2015		1,147,149		1.30	to		1.04		2,902,363		1.62			0.30		to	1.00			0.82		to	0.12
12/31/2014		931,975		1.29	to		1.04		1,468,028		1.79			0.30		to	1.00			1.45		to	0.74
Vanguard^® Total Bond Market Index
12/31/2018		359,496		1.48	to		9.79		2,198,323		2.35			0.30		to	2.70			(0.43	)	to	(2.77	)
12/31/2017		402,636		1.49	to		10.07		2,099,639		2.30			0.30		to	2.70			3.17		to	2.45
12/31/2016		445,728		1.44	to		1.11		1,483,525		2.33			0.30		to	1.00			2.16		to	1.45
12/31/2015		544,334		1.41	to		1.09		1,627,599		1.97			0.30		to	1.00			0.03		to	(0.66	)
12/31/2014		581,416		1.41	to		1.10		823,633		2.48			0.30		to	1.00			5.58		to	4.84
Voya Global Perspectives Class S Shares
12/31/2018		1,919		10.01	to		9.70		19,217		2.65			1.29		to	2.14			(8.66	)	to	(9.44	)
12/31/2017		1,791		10.96	to		10.72		19,638		2.66			1.29		to	2.14			13.25		to	12.29
12/31/2016		1,665		9.68	to		9.54		16,121		2.60			1.29		to	2.14			5.19		to	4.30
12/31/2015⁽¹⁾		1,633		9.20	to		9.15		15,028		—			1.29		to	2.14			—		to	—
Voya Large Cap Value Class S Shares
12/31/2018		95		10.56	to		10.24		1,008		1.83			1.29		to	2.14			(9.19	)	to	(9.96	)
12/31/2017		94		11.63	to		11.37		1,094		2.26			1.29		to	2.14			11.78		to	10.84
12/31/2016		97		10.40	to		10.26		1,006		3.01			1.29		to	2.14			12.13		to	11.18
12/31/2015⁽¹⁾		—		9.28	to		9.23		—		—			1.29		to	2.14			—		to	—

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
			Unit Fair Value										Expense						Total Return***
			Corresponding to							Investment			Ratio**						Corresponding to
			Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
Voya Strategic Allocation Conservative Class S Shares
12/31/2018		—	$	10.28	to	$	9.97	$	—		—	%		1.29	%	to	2.14	%		(5.49	)%	to	(6.29	)%
12/31/2017		—		10.88	to		10.64		—		—			1.29		to	2.14			8.77		to	7.86
12/31/2016		—		10.00	to		9.86		—		—			1.29		to	2.14			4.12		to	3.25
12/31/2015⁽¹⁾		—		9.61	to		9.55		—		—			1.29		to	2.14			—		to	—
Voya Strategic Allocation Moderate Class S Shares
12/31/2018		—		10.41	to		10.09		—		—			1.29		to	2.14			(7.52	)	to	(8.31	)
12/31/2017		—		11.26	to		11.01		—		—			1.29		to	2.14			12.83		to	11.88
12/31/2016		—		9.98	to		9.84		—		—			1.29		to	2.14			4.96		to	4.07
12/31/2015⁽¹⁾		—		9.51	to		9.45		—		—			1.29		to	2.14			—		to	—
Wanger International
12/31/2018		70,863		1.37	to		10.31		262,615		2.05			0.30		to	2.50			(17.95	)	to	(19.72	)
12/31/2017		108,448		1.67	to		12.85		370,644		1.23			0.30		to	2.50			32.52		to	31.86
12/31/2016		141,836		1.26	to		1.13		308,283		1.18			0.30		to	0.80			(1.70	)	to	(2.19	)
12/31/2015		160,087		1.29	to		1.16		318,081		1.51			0.30		to	0.80			(0.20	)	to	(0.70	)
12/31/2014		145,508		1.29	to		1.17		232,919		1.44			0.30		to	0.80			(4.69	)	to	(5.17	)
Wanger USA
12/31/2018		—		2.17	to		11.02		—		—			0.30		to	2.50			(1.76	)	to	(3.88	)
12/31/2017		—		2.21	to		11.46		—		—			0.30		to	2.50			19.22		to	18.63
12/31/2016		67,832		1.85	to		1.82		177,312		—			0.30		to	0.80			13.35		to	12.78
12/31/2015		133,870		1.64	to		1.62		274,445		—			0.30		to	0.80			(0.91	)	to	(1.40	)
12/31/2014		89,393		1.65	to		1.64		204,779		—			0.30		to	0.80			4.47		to	3.95

⁽¹⁾

See footnote 1

These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the Mutual Fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the Mutual Fund in which the subaccounts invest.

These amounts represent the annualized contract expenses of the subaccount, consisting primarily of mortality and expense charges, for each period indicated. These ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the Mutual Fund have been excluded.

***

These amounts represent the total return for the periods indicated, including changes in the value of the Mutual Fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. Total returns reflect a full twelve month period and total returns for subaccounts opened during the year have not been disclosed as they may not be indicative of a full year return. Expense ratios not in effect for the full twelve months are not reflected in the total return as they may not be indicative of a full year return.

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

6. Administrative and Mortality and Expense Risk Charges

TLIC deducts a daily administrative charge equal to an annual rate of 0.15% 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 $50, proportionately from the subaccounts’ unit values. An annual charge ranging from 0.15% to 2.65% 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 that is based on their actual policy:


	Additional Fund
Subaccount	Facilitation Fee Assessed
AB Balanced Wealth Strategy Class B Shares		0.20	%
AB Growth and Income Class B Shares		0.20	%
American Funds - Asset Allocation Class 2 Shares		0.30% - 0.40	%
American Funds - Bond Class 2 Shares		0.30% - 0.40	%
American Funds - Growth Class 2 Shares		0.30% - 0.40	%
American Funds - Growth-Income Class 2 Shares		0.30% - 0.40	%
American Funds - International Class 2 Shares		0.30% - 0.40	%
Fidelity^® VIP Balanced Service Class 2		0.20	%
Fidelity^® VIP Contrafund^® Initial Class		0.20	%
Fidelity^® VIP Contrafund^® Service Class 2		0.20	%
Fidelity^® VIP Equity-Income Initial Class		0.20	%
Fidelity^® VIP Growth Initial Class		0.20	%
Fidelity^® VIP Mid Cap Initial Class		0.20	%
Fidelity^® VIP Mid Cap Service Class 2		0.20	%
Fidelity^® VIP Value Strategies Initial Class		0.20	%
Fidelity^® VIP Value Strategies Service Class 2		0.20	%
Franklin Founding Funds Allocation Class 4 Shares		0.15	%
State Street Total Return V.I.S. Class 3 Shares		0.20	%
TA International Equity Index Service Class		0.15	%
TA U.S. Equity Index Service Class		0.15	%
Vanguard^® Equity Index		0.20% - 0.60	%
Vanguard^® International		0.20% - 0.60	%
Vanguard^® Mid-Cap Index		0.20% - 0.60	%
Vanguard^® Real Estate Index		0.20% - 0.60	%
Vanguard^® Short-Term Investment Grade		0.20% - 0.60	%
Vanguard^® Total Bond Market Index		0.20% - 0.60	%
Voya Global Perspectives Class S Shares		0.14	%
Voya Large Cap Value Class S Shares		0.14	%
Voya Strategic Allocation Conservative Class S Shares		0.14	%
Voya Strategic Allocation Moderate Class S Shares		0.14	%
Wanger International		0.30	%
Wanger USA		0.30	%

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2018

7. Income Tax

Operations of the Separate Account form a part of TLIC, which is taxed as a life insurance company under Subchapter L of the Internal Revenue Code of 1986, as amended (the Code). The operations of the Separate Account are accounted for separately from other operations of TLIC for purposes of federal income taxation. The Separate Account is not separately taxable as a regulated investment company under Subchapter M of the Code and is not otherwise taxable as an entity separate from TLIC. Under existing federal income tax laws, the income of the Separate Account is not taxable to TLIC, as long as earnings are credited under the variable annuity contracts.

8. Subsequent Events

The Separate Account has evaluated the financial statements for subsequent events through the date which the financial statements were issued. During this period, there were no subsequent events requiring recognition or disclosure in the financial statements.

9. Related Parties

Transamerica Capital, Inc. (“TCI”), a wholesaling broker-dealer, is an affiliated entity of TLIC and an indirect wholly owned subsidiary of AEGON N.V. TCI distributes TLIC’s products through broker-dealers and other financial intermediaries.

The subaccounts invest in the mutual funds listed in Footnote 1. These investments include funds managed by Transamerica Asset Management, Inc. (“TAM”). Transamerica Fund Services, Inc. (“TFS”) serves as a transfer agent to TAM, and AEGON USA Asset Management Holding, LLC (“AAM”) serves as a sub-advisor for certain funds managed by TAM. TAM, TFS and AAM are affiliated entities of TLIC and indirect wholly owned subsidiaries of AEGON N.V. Funds managed by TAM are identified by their fund name, which includes reference to Aegon, Transamerica or both. The Separate Account pays management fees to the related funds as detailed in the fund prospectus.

No charges other than those disclosed in Footnote 6 are deducted for the service rendered by related parties.

Contract owners may transfer funds between available subaccount options within the Separate Account. These transfers are performed at unit value at the time of the transfer.

F I N A N C I A L S T A T E M E N T S – S T A T U T O R Y B A S I S

A N D S U P P L E M E N T A R Y I N F O R M A T I O N

Transamerica Financial Life Insurance Company

Years Ended December 31, 2018, 2017 and 2016

Transamerica Financial Life Insurance Company

Financial Statements – Statutory Basis

and Supplementary Information

Years Ended December 31, 2018, 2017, and 2016

Contents


Report of Independent Auditors		1

Audited Financial Statements

Balance Sheets – Statutory Basis		3
Statements of Operations – Statutory Basis		4
Statements of Changes in Capital and Surplus – Statutory Basis		5
Statements of Cash Flow – Statutory Basis		7

Notes to Financial Statements – Statutory Basis

1.	Organization and Nature of Business	9
2.	Basis of Presentation and Summary of Significant Accounting Policies	9
3.	Accounting Changes and Corrections of Errors	21
4.	Fair Values of Financial Instruments	22
5.	Investments	31
6.	Premium and Annuity Considerations Deferred and Uncollected	48
7.	Policy and Contract Attributes	48
8.	Reinsurance	55
9.	Income Taxes	56
10.	Capital and Surplus	62
11.	Securities Lending	63
12.	Retirement and Compensation Plans	65
13.	Related Party Transactions	66
14.	Managing General Agents	70
15.	Commitments and Contingencies	70
16.	Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities	72
17.	Subsequent Events	72

Appendix A – Listing of Affiliated Companies		73

Statutory – Basis Financial Statement Schedules

Summary of Investments – Other Than Investments in Related Parties		77
Supplementary Insurance Information		78
Reinsurance		79

LOGO

Report of Independent Auditors

To the Board of Directors of

Transamerica Financial Life Insurance Company

We have audited the accompanying statutory balance sheets of Transamerica Financial Life Insurance Company (the “Company”) as of December 31, 2018 and 2017, and the related statutory statements of operations, of changes in capital and surplus, and of cash flow for each of the three years in the period ended December 31, 2018.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the New York Department of Financial Services. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 2 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the New York Department of Financial Services, which is a basis of accounting other than accounting principles generally accepted in the United States of America.


PricewaterhouseCoopers LLP, One North Wacker, Chicago, IL 60606
T: (312) 298 2000, F: (312) 298 2001, www.pwc.com/us

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2018 and 2017, or the results of its operations or its cash flows for the years ended December 31, 2018, 2017 and 2016.

Opinion on Statutory Basis of Accounting

Other Matter

/s/PricewaterhouseCoopers LLP

Chicago, Illinois

April 23, 2019


2

Transamerica Financial Life Insurance Company

Balance Sheets - Statutory Basis

(Dollars in Thousands)


	December 31
	2018			2017

Admitted assets
Cash, cash equivalents and short-term investments	$	330,590		$	534,488
Bonds		5,648,863			5,939,413
Preferred stocks		4,552			4,552
Common stocks		5,046			2,889
Mortgage loans on real estate		1,480,920			1,348,257
Real estate		-			3,604
Policy loans		130,605			125,868
Securities lending reinvested collateral assets		308,971			418,193
Derivatives		106,371			84,250
Other invested assets		253,098			267,210

Total cash and invested assets		8,269,016			8,728,724

Accrued investment income		74,495			77,783
Premiums deferred and uncollected		10,995			12,391
Net deferred income tax asset		27,355			29,700
Other assets		28,841			39,606
Separate account assets		21,069,870			25,304,275

Total admitted assets	$	29,480,572		$	34,192,479


Liabilities and capital and surplus
Aggregate reserves for policies and contracts	$	6,639,574		$	6,767,562
Policy and contract claim reserves		41,237			40,142
Liability for deposit-type contracts		29,504			29,590
Transfers from separate accounts due or accrued		(181,916	)		(201,353	)
Asset valuation reserve		120,543			120,381
Interest maintenance reserve		23,034			49,953
Derivatives		64,073			64,472
Payable for collateral under securities loaned and other transactions		370,115			466,029
Borrowed money		-			204,899
Current federal income tax payable		-			15,118
Other liabilities		214,030			281,027
Separate account liabilities		21,069,868			25,304,273

Total liabilities		28,390,062			33,142,093

Total capital and surplus		1,090,510			1,050,386

Total liabilities and capital and surplus	$	29,480,572		$	34,192,479

See accompanying notes.

Transamerica Financial Life Insurance Company

Statements of Operations - Statutory Basis

(Dollars in Thousands)


	Year Ended December 31
	2018			2017			2016

Revenues
Premiums and annuity considerations	$	5,753,819		$	5,158,586		$	5,775,260
Net investment income		350,635			371,734			408,329
Fee revenue and other income		313,223			353,437			367,507

Total revenue		6,417,677			5,883,757			6,551,096

Benefits and expenses
Death benefits		69,827			69,232			73,456
Annuity benefits		107,592			108,660			121,979
Accident and health benefits		61,299			67,199			58,684
Surrender benefits		8,728,023			5,956,797			5,651,094
Other benefits		8,613			8,243			10,097
Net increase (decrease) in reserves		(127,988	)		(371,102	)		93,344
Commissions		146,319			150,601			164,667
Net transfers to (from) separate accounts		(2,925,304	)		(452,272	)		(79,281	)
General insurance expenses and other		107,491			89,830			154,113

Total benefits and expenses		6,175,872			5,627,188			6,248,153

Gain (loss) from operations before federal income taxes		241,805			256,569			302,943
Federal income tax (benefit) expense		9,990			26,972			42,388

Net gain (loss) from operations		231,815			229,597			260,554
Net realized capital gains (losses), after tax and amounts transferred to interest maintenance reserve		(31,376	)		(70,939	)		(35,577	)

Net income (loss)	$	200,439		$	158,658		$	224,977

See accompanying notes.

Transamerica Financial Life Insurance Company

Statements of Changes in Capital and

Surplus – Statutory Basis

(Dollars in Thousands)


	Common Stock		Preferred Stock		Surplus Notes			Paid-in Surplus		Special Surplus Funds			Unassigned Surplus			Total Capital and Surplus

Balance at January 1, 2016	$	2,143	$	460	$	150,000		$	933,659	$	8,653		$	72,471		$	1,167,386
Net income (loss)		-		-		-			-		856			224,121			224,977
Change in net unrealized capital gains (losses), net of taxes		-		-		-			-		-			(20,924	)		(20,924	)
Change in net deferred income tax asset		-		-		-			-		-			3,541			3,541
Change in nonadmitted assets		-		-		-			-		-			4,751			4,751
Change in asset valuation reserve		-		-		-			-		-			(7,126	)		(7,126	)
Change in surplus as a result of reinsurance		-		-		-			-		-			(61,046	)		(61,046	)
Change in surplus notes		-		-		(150,000	)		-		-			-			(150,000	)
Dividends to stockholders		-		-		-			-		-			(70,000	)		(70,000	)
Other changes - net		-		-		-			-		-			746			746

Balance at December 31, 2016		2,143		460		-			933,659		9,509			146,534			1,092,305
Net income (loss)		-		-		-			-		1,717			156,941			158,658
Change in net unrealized capital gains (losses), net of taxes		-		-		-			-		-			44,050			44,050
Change in net deferred income tax asset		-		-		-			-		-			(32,885	)		(32,885	)
Change in nonadmitted assets		-		-		-			-		-			13,385			13,385
Change in asset valuation reserve		-		-		-			-		-			4,317			4,317
Change in surplus as a result of reinsurance		-		-		-			-		-			(71,196	)		(71,196	)
Dividends to stockholders		-		-		-			-		-			(160,000	)		(160,000	)
Other changes - net		-		-		-			1,784		(40	)		8			1,752

Balance at December 31, 2017	$	2,143	$	460	$	-		$	935,443	$	11,186		$	101,154		$	1,050,386

Continued on next page.

Transamerica Financial Life Insurance Company

Statements of Changes in Capital and Surplus – Statutory Basis (continued)

(Dollars in Thousands)


	Common Stock		Preferred Stock			Surplus Notes		Paid-in Surplus			Special Surplus Funds			Unassigned Surplus			Total Capital and Surplus

Balance at December 31, 2017	$	2,143	$	460		$	-	$	935,443		$	11,186		$	101,154		$	1,050,386
Net income (loss)		-		-			-		-			(479	)		200,918			200,439
Change in net unrealized capital gains/losses, net of tax		-		-			-		-			-			13,389			13,389
Change in net deferred income tax asset		-		-			-		-			-			(3,459	)		(3,459	)
Change in nonadmitted assets		-		-			-		-			-			7,341			7,341
Change in asset valuation reserve		-		-			-		-			-			(161	)		(161	)
Change in surplus as a result of reinsurance		-		-			-		-			-			(20,172	)		(20,172	)
Return of capital		-		-			-		(56,381	)		-			-			(56,381	)
Dividends to stockholders		-		-			-		-			-			(103,410	)		(103,410	)
Other changes - net		-		(460	)		-		272			74			2,652			2,538

Balance at December 31, 2018	$	2,143	$	-		$	-	$	879,334		$	10,781		$	198,252		$	1,090,510

See accompanying notes.

Transamerica Financial Life Insurance Company

Statements of Cash Flow – Statutory Basis

(Dollars in Thousands)


	Year Ended December 31
	2018			2017			2016

Operating activities
Premiums and annuity considerations	$	5,755,088		$	5,492,906		$	5,778,926
Net investment income		359,398			376,164			400,563
Other income		296,360			305,144			304,792
Benefit and loss related payments		(8,962,274	)		(6,221,578	)		(5,921,651	)
Net transfers from separate accounts		2,944,723			614,907			(89,156	)
Commissions and operating expenses		(261,138	)		(271,415	)		(315,012	)
Federal income taxes (paid) received		(23,519	)		13,923			(72,571	)

Net cash provided by operating activities		108,638			310,051			85,891

Investing activities
Proceeds from investments sold, matured or repaid		1,564,464			1,450,534			2,137,288
Costs of investments acquired		(1,368,882	)		(1,642,388	)		(1,969,870	)
Net change in policy loans		(4,738	)		(3,842	)		(2,501	)

Net cash provided by (used in) investing activities		190,844			(195,696	)		164,917

Financing and miscellaneous activities
Capital and paid in surplus (returned) received		(56,569	)		1,784			-
Net deposits (withdrawals) on deposit-type contracts		(4,826	)		(4,319	)		(8,341	)
Net change in borrowed money		(204,340	)		184,385			(11,475	)
Net change in surplus notes		-			-			(150,000	)
Net change in payable for collateral under securities lending and other transactions		(95,951	)		115,782			(112,378	)
Other cash (applied) provided		(38,284	)		(138,414	)		202,601
Dividends to stockholders		(103,410	)		(160,000	)		(70,000	)

Net cash used in financing and miscellaneous activities		(503,380	)		(782	)		(149,593	)


Net increase (decrease) in cash, cash equivalents and short-term investments		(203,898	)		113,573			101,215

Cash, cash equivalents and short-term investments:
Beginning of year		534,488			420,915			319,700

End of year	$	330,590		$	534,488		$	420,915

See accompanying notes.

Transamerica Financial Life Insurance Company

Statements of Cash Flow (supplemental) – Statutory Basis

(Dollars in Thousands)

Year Ended December 31

Supplemental disclosures of cash flow information

2018

2017

2016

Significant non-cash activities during the year not included in the Statutory Statements of Cash Flow

Transfer of bonds and mortgage loans related to reinsurance agreement with third party

379,177

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands)

December 31, 2018

1. Organization and Nature of Business

Transamerica Financial Life Insurance Company (the Company) is a stock life insurance company and is majority owned by Transamerica Corporation (TA Corp) (87.9% of shares) and minority owned by Transamerica Life Insurance Company (TLIC) (12.1% of shares). Both TA Corp and TLIC are indirect, wholly-owned subsidiaries of Aegon N.V., a holding company organized under the laws of The Netherlands. Prior to December 31, 2015, the Company was majority owned by Aegon USA, LLC (Aegon). On December 31, 2015, Aegon merged into TA Corp, a Delaware-domiciled non-insurance affiliate.

Nature of Business

The Company sells fixed and variable life and annuity products, group life coverages, life insurance, index universal life, investment contracts, structured settlements and guaranteed interest contracts and funding agreements. The Company is licensed in 50 states and the District of Columbia. Sales of the Company’s products are primarily through brokers.

2. Basis of Presentation and Summary of Significant Accounting Policies

The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the New York Department of Financial Services (NYDFS), which differ from accounting principles generally accepted in the United States of America (GAAP).

The NYDFS recognizes only statutory accounting practices prescribed or permitted by the State of New York for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under the New York Insurance Law.

The State of New York has adopted a prescribed accounting practice that differs from that found in the National Association of Insurance Commissioners (NAIC) Accounting Practices and Procedures Manual (NAIC SAP) related to the reported value of the assets supporting the Company’s guaranteed separate accounts. As prescribed by Section 1414 of the New York Insurance Law, 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 Statement of Statutory Accounting Principle (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.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Use of Estimates

Investments

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. 26R, Bonds, and therefore, are reported at amortized cost or fair value based upon their NAIC rating.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Investments in preferred stocks in good standing (those with NAIC designations RP1 to RP3 and P1 to P3), are reported at cost or amortized cost, depending on the characteristics of the securities. Investments in preferred stocks not in good standing (those with NAIC designations RP4 to RP6 and P4 to P6), are reported at the lower of cost, amortized cost, or fair value, depending on the characteristics of the securities. The related net unrealized capital gains and losses for all NAIC designations are reported in changes in capital and surplus.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company owns stock issued by the Federal Home Loan Bank (FHLB), which is only redeemable at par, and its fair value is presumed to be par, unless other-than temporarily impaired.

Real estate that the Company classifies as investment properties is measured at lower of carrying amount or fair value less cost to sell. Investments in real estate are reported net of related obligations rather than on a gross basis as for GAAP. Changes between depreciated cost and admitted amounts are credited or charged directly to unassigned surplus rather than to income as would be required under GAAP.

The Company has 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.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

Policy loans are reported at unpaid principal balances.

Valuation Reserves

The AVR provides a valuation allowance for invested assets. The AVR is determined by a NAIC prescribed formula with changes reflected directly in unassigned surplus; AVR is not recognized for GAAP.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Derivative Instruments

Overview: The Company uses various derivative instruments (swaps, 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, Derivatives.

(A)

(B)

(C)

(D)

Derivative instruments held for other investment/risk management activities are measured at fair value with value adjustments recorded in unassigned surplus.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Instruments:

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 denominated security. These cross currency swap agreements involve the exchange of two principal amounts in two different currencies at the prevailing currency rate at contract inception. During the life of the swap, the counterparties exchange fixed or floating rate interest payments in the swapped currencies. At maturity, the principal amounts are again swapped at a pre-determined rate of exchange. Each asset or liability is hedged individually where the terms of the swap must meet the terms of the hedged instrument. For swaps qualifying for hedge accounting, the premium or discount is amortized into income over the life of the contract and the foreign currency translation adjustment is recorded as unrealized gain/loss in capital and surplus. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in capital and surplus. If a swap is terminated prior to maturity, proceeds 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.

Bond forwards are used to hedge the interest rate risk that future liability claims increase as rates decrease, leading to higher guarantee values.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Total return swaps are used in the asset/liability management process to mitigate the delta risk created when the Company has issued minimum guarantee insurance contracts linked to an index. These total return swaps generally provide for the exchange of the difference between fixed leg (tied to the Standard & Poor’s (S&P) or other global market financial index) and floating leg (tied to the London Interbank Offered Rate (LIBOR)) amounts based on an underlying notional amount (also tied to the underlying index). Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. 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 capital and surplus.

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

Securities Lending Assets and Liabilities

The Company loans securities to third parties under agent-managed securities lending programs, accounted for as secured borrowings. Cash collateral received which may be sold or repledged by the Company is reflected as a one-line entry on the balance sheet (securities lending reinvested collateral assets) and a corresponding liability is established to record the obligation to return the cash collateral. Non-cash collateral received which may not be sold or repledged is not recorded on the Company’s balance sheet. Under GAAP, the reinvested collateral is included within invested assets (i.e. it is not one-line reported).

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Repurchase Agreements

For dollar repurchase agreements accounted for as secured borrowings, 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. The securities transferred are not removed from the balance sheet, and the cash received as collateral is invested as needed or used for general corporate purposes of the Company. A liability is established to record the obligation to return the cash collateral and included in Borrowed Money on the Balance Sheets.

Other Assets and Other Liabilities

Other assets consist primarily of general insurance and reinsurance accounts receivable. Other “admitted assets” are valued principally at cost, as required or permitted by New York Insurance Laws.

Other liabilities consist primarily of amounts withheld by the Company, commissions payable, and accrued expenses.

Separate Accounts

The majority of the separate accounts held by the Company represent funds which are administered for pension plans. The assets in the managed separate accounts consist of common stock, long-term bonds, real estate and short-term investments. The non-managed separate accounts are invested by the Company in a corresponding portfolio of Diversified Investors Portfolios. The portfolios are registered under the Investment Company Act of 1940, as amended, as open-ended, diversified, management investment companies.

Except for some guaranteed separate accounts, which are carried at amortized cost, the assets are carried at fair value, and the investment risks associated with fair value changes are borne entirely by the policyholder. Some of the guaranteed separate accounts provide a guarantee of principal and some include an interest guarantee of 4% or less, so long as the contract is in effect. Separate account asset performance less than guaranteed requirements is transferred from the general account and reported in the statements of operations.

Assets held in trust for purchases of separate account contracts and the Company’s corresponding obligation to the contract owners are shown separately in the balance sheets. Income and gains and losses with respect to these assets accrue to the benefit of the contract owners and, accordingly, the operations of the separate accounts are not included in the accompanying financial statements.

The investment risks associated with fair value changes of the separate account are borne entirely by the contract owners except in cases where minimum guarantees exist. Income and gains and losses with respect to the assets in the separate accounts supporting modified guaranteed annuity contracts are included in the Company’s statements of operations as a component of net transfers from separate accounts.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Separate account assets and liabilities reported in the accompanying financial statements consist of two types: non-indexed guaranteed and nonguaranteed. Non-indexed guaranteed separate accounts represent funds invested by the Company for the benefit of contract holders who are guaranteed certain returns as specified in the contracts. Separate account asset performance different than the guaranteed requirements is either transferred to or received from the general account and reported in the statements of operations. Non-indexed guaranteed separate account assets and liabilities are carried at amortized cost.

The non-guaranteed separate account assets and liabilities represent group annuity funds segregated by the Company for the benefit of contract owners. The assets and liabilities of the nonguaranteed separate accounts are carried at fair value.

Aggregate Reserves for Policies and Contracts

Surrender values are not promised in excess of the legally computed reserves. For annual premium variable life insurance there is an extra premium charged to the policyholder before the premium is transferred to the Separate Accounts. An additional reserve for this policy is held in the General Account that is a multiple of the reserve that would otherwise be held.

For GAAP, policy reserves are calculated based on estimated expected experience or actual account balances.

Policy and Contract Claim Reserves

Deposit-Type Contracts

Deposit-type contracts do not incorporate risk from the death or disability of policyholders. These types of contracts may include guaranteed investment contracts (GICs), funding agreements and other annuity contracts. Deposits and withdrawals on these contracts are recorded as a direct increase or decrease, respectively, to the liability balance and are not reported as premiums, benefits or changes in reserves in the statement of operations. Interest on these policies is reflected in other benefits.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Premiums and Annuity Considerations

Policyholder Dividends

Policyholder dividends are recognized when declared rather than over the term of the related policies as would be required under GAAP.

Reinsurance

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.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Deferred Income Taxes

The Company computes deferred income taxes in accordance with 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 (IRS) 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 state income taxes are not recorded under SSAP No. 101, whereas under GAAP state income taxes are included in the computation of deferred income taxes.

Policy Acquisition Costs

Value of Business Acquired

Under GAAP, value of business acquired (VOBA) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future contracts and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operation expenses, investment returns, nonperformance risk adjustment and other factors. VOBA is not recognized under the NAIC SAP.

Subsidiaries and affiliated companies

Investments in subsidiaries, controlled and affiliated companies (SCA) are stated in accordance with the Purposes and Procedures Manual of the NAIC SVO, as well as SSAP No. 97, Investments in Subsidiary, Controlled and Affiliated Entities.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Surplus Notes

Surplus notes are reported as surplus rather than as liabilities as would be required under GAAP.

Nonadmitted Assets

Statements of Cash Flow

Money market mutual funds 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.

3. Accounting Changes and Corrections of Errors

Recent Accounting Pronouncements

Effective January 1, 2018, the NAIC adopted revisions to SSAP No. 100, Fair Value, which allow net asset value (NAV) per share as a practical expedient to fair value, either when specifically named in a SSAP or when specific conditions exist. These revisions are considered substantive changes as the use of NAV is a new concept being reflected within SSAP No. 100R. The revisions adopt ASU 2009-12: Investments in Certain Entities that Calculate Net Asset Value Per Share (or Its Equivalent) and ASU 2015-07: Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share (or Its Equivalent). The adoption of this guidance did not impact the financial position or results of operations of the Company as the Company has not elected to use NAV as an expedient.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Prior Period Correction

During 2018, management identified and corrected errors in the calculation of Related Party balances received and paid. Amounts received from related parties for 2017 and 2016 were understated by $8,223 and $229, respectively. Amounts paid to related parties for 2017 and 2016 were understated by $21,730 and $20,707, respectively. This is reflected in the Related Party disclosure in Note 13. The error did not affect any other footnotes or the financial statements.

Change in Accounting Principles

Reclassifications

The Company reclassified certain balances within the statutory basis financial statement presentation on the balance sheets, statements of operations and statements of cash flows to better align with industry practice. All prior period amounts were reclassified to conform with the current period presentation. The Company did not change any financial statement totals reported in the prior periods as a result of reclassifications.

4. Fair Values of Financial Instruments

Determination of fair value

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Fair value hierarchy


Level 1 -		Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.

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

		a) Quoted prices for similar assets or liabilities in active markets
		b) Quoted prices for identical or similar assets or liabilities in non-active markets
		c) Inputs other than quoted market prices that are observable
		d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means

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

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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

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

Fair values for fixed maturity securities (including redeemable preferred stock) actively traded are determined from third-party pricing services, which are determined as discussed above in the description of Level 1 and Level 2 values within the fair value hierarchy. For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from third-party pricing services, or are based on non-binding broker quotes or internal models. In the case of private placements, fair values are estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Derivative Financial Instruments: The fair value of futures and forwards are based upon the latest quoted market price and spot rates at the balance sheet date. The estimated fair values of equity and interest rate options (calls, puts, caps) are based upon the latest quoted market price at the balance 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 value of credit default swaps are based upon active market data, including interest rate quotes, credit spreads, and recovery rates, which are then used to calculate probabilities of default for the fair value calculation. The Company accounts for derivatives that receive and pass hedge accounting in the same manner as the underlying hedged instrument. If that instrument is held at amortized cost, then the derivative is also held at amortized cost.

Policy Loans: The book value of policy loans is considered to approximate the fair value of the loan.

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

Separate Account Assets and Annuity Liabilities: The fair value of separate account assets are based on quoted market prices when available. When not available, they are primarily valued either using third-party pricing services or are valued in the same manner as the general account assets as further described in this note. However, some separate account assets are valued using non-binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilizes input that are not market observable. The fair value of separate account annuity liabilities is based on the account value for separate accounts business without guarantees. For separate accounts with guarantees, fair value is based on discounted cash flows.

Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying balance sheets approximate their fair values. These are included in investment contract liabilities.

The Company accounts for its investments in affiliated common stock in accordance with SSAP No. 97, as such, they are not included in the following disclosures.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

December 31, 2018

Aggregate Fair
Value

Admitted Value

(Level 1)

(Level 2)

(Level 3)

Net Asset

Value

(NAV)

Admitted assets

Cash equivalents and short-term investments, other than affiliates

224,732

203,002

21,730

–

Short-term notes receivable from affiliates

50,000

–

50,000

–

Bonds

5,711,928

5,648,863

543,674

5,057,778

110,476

–

Preferred stocks, other than affiliates

4,291

4,552

–

4,291

–

Common stocks, other than affiliates

1,115

–

1,115

–

Mortgage loans on real estate

1,475,938

1,480,920

–

1,475,938

–

Other invested assets

21,679

19,230

–

21,580

–

Derivative assets:

Interest rate swaps

79,466

–

79,466

–

Currency swaps

4,009

3,425

–

4,009

–

Credit default swaps

6,361

5,174

–

6,361

–

Equity swaps

15,770

–

15,770

–

Interest rate futures

2,368

–

Equity futures

168

–

Derivative assets total

108,142

106,371

2,536

105,606

–

Policy loans

130,605

–

130,605

–

Securities lending reinvested collateral

283,720

283,721

–

283,720

–

Separate account assets

21,012,397

21,063,892

17,984,612

3,027,785

–

Liabilities

Investment contract liabilities

4,752,848

4,701,794

–

3,494

4,749,354

–

Derivative liabilities:

Interest rate swaps

49,615

58,897

–

49,615

–

Currency swaps

2,391

1,545

–

2,391

–

Credit default swaps

(340

)

2,622

–

(340

)

–

Equity swaps

410

–

410

–

Interest rate futures

141

–

Equity futures

458

–

Derivative liabilities total

52,675

64,073

599

52,076

–

Dollar repurchase agreements

–

Payable for securities lending

308,971

–

308,971

–

Payable for derivative cash collateral

61,144

–

61,144

–

Separate account annuity liabilities

20,647,404

20,651,888

–

18,109,336

2,538,068

–

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)


						December 31, 2017

	Aggregate Fair Value			Admitted Value		(Level 1)		(Level 2)			(Level 3)		Net Asset Value (NAV)

Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	374,453		$	374,460	$	209,113	$	165,340		$	–	$	–
Short-term notes receivable from affiliates		124,300			124,300		–		124,300			–		–
Bonds		6,346,925			5,939,413		576,950		5,655,986			113,989		–
Preferred stocks, other than affiliates		4,394			4,552		–		4,394			–		–
Mortgage loans on real estate		1,363,072			1,348,257		–		–			1,363,072		–
Other invested assets		23,302			19,441		–		23,107			195		–
Derivative assets:
Interest rate swaps		77,435			77,435		–		74,387			3,048		–
Currency swaps		632			902		–		632			–		–
Credit default swaps		9,101			5,548		–		9,101			–		–
Equity swaps		365			365		–		365			–		–
Derivative assets total		87,533			84,250		–		84,485			3,048		–
Policy loans		125,868			125,868		–		125,868			–		–
Securities lending reinvested collateral		418,186			418,193		–		418,186			–		–
Separate account assets		25,261,899			25,275,703		19,974,909		5,286,990			–		–

Liabilities
Investment contract liabilities		4,996,596			4,923,323		–		3,454			4,993,142		–
Derivative liabilities:
Interest rate swaps		44,303			45,781		–		42,619			1,684		–
Currency swaps		5,785			4,188		–		5,785			–		–
Credit default swaps		(3,130	)		4,707		–		(3,130	)		–		–
Equity swaps		9,795			9,795		–		9,795			–		–
Derivative liabilities total		56,753			64,472		–		55,069			1,684		–
Separate account annuity liabilities		24,819,429			24,821,405		–		20,056,852			4,762,577		–

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following table provides information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2018 and 2017:

2018

Level 1

Level 2

Level 3

Net Asset
Value
(NAV)

Total

Assets:

Bonds

Industrial and miscellaneous

–

3,886

1,060

–

4,946

Total bonds

–

3,886

1,060

–

4,946

Common stock

Industrial and miscellaneous

–

1,115

–

1,115

Total common stock

–

1,115

–

1,115

Cash equivalents and short-term

Mutual funds

203,002

–

203,002

Total short-term investments

203,002

–

203,002

Securities lending reinvested collateral

–

Derivative assets

2,536

95,237

–

97,773

Separate account assets

17,984,612

448,016

–

18,432,628

Total assets

18,190,150

547,139

$ 2,175

–

18,739,464

Liabilities:

Derivative liabilities

599

48,476

–

49,075

Total liabilities

599

48,476

–

49,075

2017

Level 1

Level 2

Level 3

Net Asset
Value
(NAV)

Total

Assets:

Bonds

Industrial and miscellaneous

–

991

1,302

–

2,293

Total bonds

–

991

1,302

–

2,293

Short-term investments

Industrial and miscellaneous

209,113

–

209,113

Total short-term investments

209,113

–

209,113

Securities lending reinvested collateral

–

395,069

–

395,069

Derivative assets

–

74,752

3,048

–

77,800

Separate account assets

19,974,909

506,486

–

20,481,395

Total assets

20,184,022

977,298

4,350

–

21,165,670

Liabilities:

Derivative liabilities

–

46,236

1,684

–

47,920

Total liabilities

–

46,236

1,684

–

47,920

The Company reviews the fair value hierarchy classifications at each reporting period. Overall, reclassifications between levels occur when there are changes in the observability of inputs and market activity used in the valuation of a financial asset or liability. Given the types of assets classified as Level 1 (primarily equity securities including mutual fund investments), transfers between Level 1 and Level 2 measurement categories are expected to be infrequent. Transfers into and out of Level 3 are summarized in the schedule of changes in Level 3 asset and liabilities. There were no material asset transfers between Level 1 and Level 2 or between Level 2 and Level 3 during the years ended December 31, 2018 and 2017.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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

Common stocks classified as Level 3 are comprised primarily of shares in the FHLB of New York, which are valued at par as a proxy for fair value as a result of restrictions that allow redemptions only by FHLB.

Cash equivalents and short-term investments classified as Level 1 are primarily money market mutual funds and are measured at fair value. For those securities with a pricing source of ‘amortized cost’; amortized cost is a proxy for fair value.

Securities lending reinvested collateral is valued and classified in the same way as the underlying collateral, which is primarily composed of cash equivalents and short-term investments.

Derivatives classified as Level 1 represent exchange-traded interest rate or equity futures contracts valued using quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. 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. Derivatives classified as Level 3 represent interest rate swaps 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 and liabilities are valued and classified in the same way as general account assets and liabilities (described above).

The following tables summarize the changes in assets classified as Level 3 for 2018 and 2017:

Beginning
Balance at
January 1, 2018

Transfers in
(Level 3)

Transfers out
(Level 3)

Total Gains
(Losses) Included
in Net

Total Gains (Losses)
Included in Surplus
(b)

Bonds

Other

1,302

1,885

1,891

(47

)

Common stock

–

Derivatives

1,364

–

(20,149

)

(1,364

)

Total

2,666

1,885

1,891

(20,143

)

(1,411

)

Purchases

Issuances

Sales

Settlements

Ending Balance at

December 31, 2018

Bonds

Other

–

195

1,060

Common stock

1,115

–

1,115

Derivatives

–

(2,004

)

(18,145

)

–

Total

1,115

–

(2,004

)

(17,950

)

2,175

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)


	Beginning Balance at January 1, 2017			Transfers in (Level 3)		Transfers out (Level 3)		Total Gains (Losses) Included in Net income (a)			Total Gains (Losses) Included in Surplus (b)

Bonds
Other	$	1,344		$	1,448	$	1,344	$	–		$	(98	)
Derivatives		(42,341	)		–		–		(22,627	)		43,705

Total	$	(40,997	)	$	1,448	$	1,344	$	(22,627	)	$	43,607


	Purchases			Issuances		Sales		Settlements			Ending Balance at December 31, 2017

Bonds
Other	$	–		$	–	$	–	$	48		$	1,302
Derivatives		–			–		–		(22,627	)		1,364

Total	$	–		$	–	$	–	$	(22,579	)	$	2,666

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

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

Transfers between fair value hierarchy levels are recognized at the beginning of the reporting period.

Nonrecurring fair value measurements

As of December 31, 2018 and 2017, the Company held no property as held for sale.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

5. Investments

The carrying amounts and estimated fair value of investments in bonds and stocks are as follows:


	Book Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

December 31, 2018
Bonds
United States Government and agencies	$	468,344	$	66,434	$	5,251	$	529,527
State, municipal and other government		107,295		7,308		2,112		112,491
Hybrid securities		78,621		1,197		10,624		69,194
Industrial and miscellaneous		3,985,382		97,188		121,758		3,960,812
Mortgage and other asset-backed securities		1,009,221		41,273		10,590		1,039,904

Total bonds		5,648,863		213,400		150,335		5,711,928
Unaffiliated preferred stocks		4,552		45		306		4,291

Total	$	5,653,415	$	213,445	$	150,641	$	5,716,219


	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

Unaffiliated common stocks	$	1,115	$	–	$	–	$	1,115


	Book Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

December 31, 2017
Bonds
United States Government and agencies	$	466,491	$	96,663	$	911	$	562,243
State, municipal and other government		139,860		13,900		78		153,682
Hybrid securities		92,113		3,833		2,373		93,573
Industrial and miscellaneous		4,043,406		268,830		26,339		4,285,897
Mortgage and other asset-backed securities		1,197,543		58,138		4,151		1,251,530

Total bonds		5,939,413		441,364		33,852		6,346,925
Unaffiliated preferred stocks		4,552		171		328		4,395

	$	5,943,965	$	441,535	$	34,180	$	6,351,320

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The carrying amount and estimated fair value of bonds at December 31, 2018, by contractual maturity, is 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.


	2018

December 31:	Carrying Value		Fair Value

Due in one year or less	$	373,709	$	376,081
Due after one year through five years		1,703,911		1,704,375
Due after five years through ten years		901,023		881,437
Due after ten years		1,660,999		1,710,131

		4,639,642		4,672,024
Mortgage and other asset-backed securities		1,009,221		1,039,904

Total	$	5,648,863	$	5,711,928

The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2018 and 2017 is as follows:

2018

Equal to or Greater than

12 Months

Less than 12 Months

Estimated

Fair Value

Gross

Unrealized

Losses

Estimated

Fair Value

Gross

Unrealized

Losses

United States Government and agencies

14,262

1,143

72,486

4,108

State, municipal and other government

4,121

513

24,210

1,599

Hybrid securities

14,836

3,374

42,248

7,250

Industrial and miscellaneous

369,353

46,104

1,718,951

75,654

Mortgage and other asset-backed securities

140,189

4,803

291,096

5,787

Total bonds

542,761

55,937

2,148,991

94,398

Preferred stocks-unaffiliated

1,800

224

1,200

Total

544,561

56,161

2,150,191

94,480

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)


	2017

	Equal to or Greater than 12 Months				Less than 12 Months

	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses

United States Government and agencies	$	22,698	$	870	$	2,751	$	41
State, municipal and other government		121		3		20,297		74
Hybrid securities		34,062		2,373		–		–
Industrial and miscellaneous		315,518		18,010		241,316		8,329
Mortgage and other asset-backed securities		74,913		2,933		259,640		1,219

Total bonds		447,312		24,189		524,004		9,663

Preferred stocks-unaffiliated		2,978		328		–		–

	$	450,290	$	24,517	$	524,004	$	9,663

There were no loan-backed or structured securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold during the years ended December 31, 2018 and 2017.

The following loan-backed and structured securities were held at December 31, 2018, for which an OTTI was recognized during the current reporting period:

CUSIP

Amortized

Cost Before

Current

Period OTTI

Present Value

of Projected

Cash Flows

Recognized

OTTI

Amortized

Cost After

OTTI

Fair Value

at Time of

OTTI

Date of

Financial

Statement

Where

Reported

14984WAA8

3,481

3,357

124

3,357

3,060

3/31/2018

52522QAM4

7,058

6,965

6,848

3/31/2018

65536PAA8

117

115

3/31/2018

81744FFD4

3/31/2018

126380AA2

1,049

–

1,049

1,094

3/31/2018

65536PAA8

113

6/30/2018

81744FFD4

6/30/2018

81744FFD4

12/31/2018

22944BCX4

7,195

7,033

162

7,033

6,379

12/31/2018

485

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)


	2018				2017
	Losses 12 Months or More		Losses Less Than 12 Months		Losses 12 Months or More		Losses Less Than 12 Months

Year ended December 31:
The aggregate amount of unrealized losses	$	4,803	$	6,066	$	2,932	$	1,617
The aggregate related fair value of securities with unrealized losses	$	140,189		295,276		74,913		267,521

At December 31, 2018 and 2017, 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 138 and 99 securities with a carrying amount of $600,722 and $474,808 and an unrealized loss of $56,160 and $24,517 with an average price of 90.7 and 94.8 (fair value/amortized cost). Of this portfolio, 83.0% and 88.5% were investment grade with associated unrealized losses of $38,408 and $17,590, respectively.

At December 31, 2018 and 2017, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 643 and 129 securities with a carrying amount of $2,244,673 and $533,667 and an unrealized loss of $94,480 and $9,663 with an average price of 95.8 and 98.2 (fair value/amortized cost). Of this portfolio, 85.1% and 83.0% were investment grade with associated unrealized losses of $68,171 and $5,905, respectively.

At December 31, 2018 and 2017, respectively, there were no common stocks that have been in a continuous loss position for greater than or equal to twelve months.

At December 31, 2018 and 2017, respectively, there were no common stocks that have been in a continuous loss position for less than twelve months.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following structured notes were held at December 31, 2018 and 2017:

December 31, 2018

CUSIP

Identification

Actual Cost

Fair Value

Book /Adjusted

Carrying Value

Mortgage-

Referenced

Security

(YES/NO)

912810QV3

39,979

41,096

44,858

912810RA8

49,933

58,000

56,000

912810RL4

24,893

26,713

26,967

912810RR1

1,925

1,778

2,011

44965TAA5

1,462

1,194

1,464

44965UAA2

750

714

752

Total

118,942

129,495

132,052

December 31, 2017

CUSIP

Identification

Actual Cost

Fair Value

Book /Adjusted

Carrying Value

Mortgage-

Referenced

Security

(YES/NO)

44965TAA5

1,462

1,497

1,463

44965UAA2

750

883

751

912810QV3

39,979

44,535

43,742

912810RA8

49,933

63,077

54,283

912810RL4

24,893

29,246

26,213

912810RR1

1,925

1,953

1,966

Total

118,942

141,191

128,418

The following table provides the number of 5GI securities, aggregate book adjusted carrying value and aggregate fair value by investment type:


	Number of 5GI Securities		Book /Adjusted Carrying Value		Fair Value
December 31, 2018
Bond, amortized cost		3	$	7,782	$	8,181
Loan-backed and structured securities, amortized cost		1		2,398		2,398

Total		4	$	10,180	$	10,579

December 31, 2017
Bond, amortized cost		2	$	7,504	$	7,918

Total		2	$	7,504	$	7,918

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

During 2018 and 2017, the Company sold, redeemed or otherwise disposed of 64 and 50 securities as a result of a callable feature which generated investment income of $4,910 and $7,266 as a result of a prepayment penalty and/or acceleration fee.


	Year Ended December 31
	2018			2017			2016


Proceeds	$	1,047,071		$	1,397,425		$	1,682,509


Gross realized gains	$	2,342		$	44,204		$	26,490
Gross realized losses		(26,053	)		(6,295	)		(15,183	)

Net realized capital gains (losses)	$	(23,711	)	$	37,909		$	11,307

At December 31, 2018 and 2017, the Company had no recorded investment in restructured securities. There were no capital gains (losses) taken as a direct result of restructures in 2018, 2017 and 2016.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Mortgage Loans

The credit quality of mortgage loans by type of property for the years ended December 31, 2018 and 2017 was as follows:


December 31, 2018
	Farm		Commercial		Total

AAA - AA	$	–	$	742,293	$	742,293
A		10,000		675,425		685,425
BBB		–		49,256		49,256
BB		–		3,946		3,946

	$	10,000	$	1,470,920	$	1,480,920


December 31, 2017
	Farm		Commercial		Total

AAA - AA	$	–	$	589,372	$	589,372
A		10,457		645,129		655,586
BBB		–		99,316		99,316
BB		–		3,983		3,983

	$	10,457	$	1,337,800	$	1,348,257

During 2018 and 2017, respectively, the Company issued mortgage loans with a maximum interest rate of 5.54% and 5.92%, and a minimum interest rate of 4.02% and 3.50% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated or acquired during the year ending December 31, 2018 at the time of origination or acquisitions was 74%. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated during the year ending December 31, 2017 at the time of origination was 77%. During 2018 and 2017, the Company did not reduce the interest rate on any outstanding mortgage loan. During 2018 and 2017 the Company issued no farm mortgage loans.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The age analysis of mortgage loans and identification in which the Company is a participant or co-lender in a mortgage loan agreement is as follows for December 31, 2018 and 2017.

Commercial

Farm

Insured

All Other

Total

December 31, 2018

Recorded Investment (All)

(a)

Current

10,000

–

1,470,920

1,480,920

(b)

30-59 Days Past Due

–

(c)

60-89 Days Past Due

–

(d)

90-179 Days Past Due

–

(e)

180+ Days Past Due

–

Participant or Co-lender in Mortgage Loan Agreement

(a)

Recorded Investment

10,000

–

590,536

600,536

Commercial

Farm

Insured

All Other

Total

December 31, 2017

Recorded Investment (All)

(a)

Current

10,457

–

1,337,800

1,348,257

(b)

30-59 Days Past Due

–

(c)

60-89 Days Past Due

–

(d)

90-179 Days Past Due

–

(e)

180+ Days Past Due

–

Participant or Co-lender in Mortgage Loan Agreement

(a)

Recorded Investment

10,000

–

522,543

532,543

The Company did not have any impaired loans at December 31, 2018 or 2017. The Company did not hold an allowance for credit losses on mortgage loans at December 31, 2018 or 2017. There were no mortgage loans subject to participant or co-lender mortgage loan agreement for which the Company is restricted from unilaterally foreclosing on the mortgage loans.

No mortgage loan foreclosures occurred during 2018 and 2017. During 2016, one mortgage loan in the amount of $3,600 was foreclosed and transferred to real estate. At December 31, 2018 and 2017, the Company held a mortgage loan loss reserve in the AVR of $14,587 and $13,028, respectively.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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
	2018			2017				2018			2017


South Atlantic		26	%		24	%	Apartment		53	%		53	%
Pacific		24			24		Retail		16			14
Middle Atlantic		12			12		Industrial		14			14
Mountain		10			11		Office		10			12
W. South Central		8			8		Other		3			3
E. North Central		8			8		Medical		3			3
W. North Central		7			9		Agricultural		1			1
E. South Central		4			4
New England		1			–

Real Estate

An impairment loss of $2,426 was taken on a property during the third quarter of 2018 to write the book value down to the current fair value. This impairment loss was included in net realized capital gains (losses) within the summary of operations. There were no impairment losses in 2017 or 2016.

The Company subsequently disposed of the property during the fourth quarter of 2018, resulting in a realized losses of $1,205. No properties were disposed of during 2017 or 2016.

Other Invested Assets

During 2018 and 2017, the Company recognized no impairment write downs for its investments in joint ventures and limited partnerships. During 2016, the Company recognized an impairment of $10,869 related to a private equity fund because the decline in fair value of the funds were deemed to be other than temporary and a recovery in value from the remaining underlying investments in the funds were not anticipated. These write-downs are included in net realized capital gains (losses) within the statement of operations.

Tax Credits

At December 31, 2018, the Company had ownership interest in ten LIHTC investments. The remaining years of unexpired tax credits ranged from six to eleven and the properties were not subject to regulatory review. The length of time remaining for the holding periods ranged from one to sixteen years. The amount of contingent equity commitments expected to be paid during the years 2019 to 2023 is $149,810. LIHTC tax credits recognized in 2018 was $16,993, and other LIHTC tax benefits recognized in 2018 was $5,163. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2017, the Company had ownership interest in eleven LIHTC investments. The remaining years of unexpired tax credits ranged from seven to twelve and the properties were not subject to regulatory review. The length of time remaining for the holding periods ranged from two to seventeen years. The amount of contingent equity commitments expected to be paid during the years 2018 to 2023 is $196,409. LIHTC tax credits recognized in 2017 was $8,851, and other LIHTC tax benefits recognized in 2017 was $6,172. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

The Company did not have any non-transferable state tax credits.

Derivatives


	2018			2017

Fair value - positive	$	110,369		$	91,228
Fair value - negative		(54,903	)		(60,447	)

For the years ended December 31, 2018, 2017 and 2016, the Company recorded unrealized gains (losses) of $48,698, $29,880 and ($11,706), respectively, for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. This has been recorded directly to unassigned surplus as an unrealized gain (loss). The Company did not recognize any unrealized gains or losses during 2018, 2017 or 2016 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Summary of realized gains (losses) by derivative type for year-end December 31, is as follows:


	2018			2017			2016

Swaps:
Interest rate	$	(25,855	)	$	(15,334	)	$	30,336
Credit		(1,240	)		–			861
Total return		(6,871	)		(70,474	)		(26,807	)

Total swaps	$	(33,966	)	$	(85,808	)	$	4,390

Futures - net positions		(3,690	)		13,675			(20,669	)
Lehman settlements		47			104			108

Total realized gains (losses)	$	(37,609	)	$	(72,029	)	$	(16,171	)

Fair value of replicated assets and credit default swaps (as underlying), as of December 31, is as follows:


	2018		2017		2016

Replicated assets	$	577,649	$	528,629	$	644,760
Credit default		6,700		12,231		9,105

Capital gains (losses) to credit swap transactions (which are primary replication transactions), as of December 31, is as follows:


	2018			2017		2016

Capital gains (losses)	$	(1,240	)	$	–	$	861

As stated in Note 1, the Company replicates investment grade corporate bonds and sovereign debt by writing credit default swaps. As a writer of credit swaps, the Company actively monitors the underlying asset, being careful to note any events (default or similar credit event) that would require the Company to perform on the credit swap. If such events would take place, a payment equal to the notional amount of the contract, less any potential recoveries as determined by the underlying agreement, will be made by the Company to the counterparty to the swap.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables present the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at December 31, 2018 and 2017:

2018

Rating Agency Designation of

Referenced Credit Obligations ⁽¹⁾

NAIC
Designation

Estimated
Fair Value
of Credit
Default
Swaps

Maximum Amount

of Future

Payments under
Credit Default
Swaps

Weighted
Average
Years to
Maturity ⁽²⁾

AAA/AA/A

Single name credit default swaps ⁽³⁾

1,849

121,465

2.5

Credit default swaps referencing indices

–

Subtotal

1,849

121,465

2.5

BBB

Single name credit default swaps ⁽³⁾

4,555

272,440

2.9

Credit default swaps referencing indices

811

99,000

3.5

Subtotal

5,366

371,440

3.0

Single name credit default swaps ⁽³⁾

(28

)

13,050

1.2

Credit default swaps referencing indices

–

Subtotal

(28

)

13,050

1.2

Single name credit default swaps ⁽³⁾

(487

)

2,500

3.5

Credit default swaps referencing indices

–

Subtotal

(487

)

2,500

3.5

CCC and lower

Single name credit default swaps ⁽³⁾

–

Credit default swaps referencing indices

–

Subtotal

–

In or near default

Single name credit default swaps ⁽³⁾

–

Credit default swaps referencing indices

–

Subtotal

–

Total

6,700

508,455

2.9

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

2017

Rating Agency Designation of

Referenced Credit Obligations ⁽¹⁾

NAIC
Designation

Estimated
Fair Value
of Credit
Default
Swaps

Maximum Amount
of Future
Payments under
Credit Default
Swaps

Weighted
Average
Years to
Maturity ⁽²⁾

AAA/AA/A

Single name credit default swaps ⁽³⁾

10,774

365,315

3.3

Credit default swaps referencing indices

1,352

65,000

3.9

Subtotal

12,126

430,315

3.4

BBB

Single name credit default swaps ⁽³⁾

104

7,000

2.6

Credit default swaps referencing indices

–

Subtotal

104

7,000

2.6

Single name credit default swaps ⁽³⁾

–

Credit default swaps referencing indices

–

Subtotal

–

Single name credit default swaps ⁽³⁾

–

Credit default swaps referencing indices

–

Subtotal

–

CCC and lower

Single name credit default swaps ⁽³⁾

–

Credit default swaps referencing indices

–

Subtotal

–

In or near default

Single name credit default swaps ⁽³⁾

–

Credit default swaps referencing indices

–

Subtotal

–

Total

12,230

437,315

3.4

(1)

The rating agency designations are based on availablity and the blending of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard and Poor’s Rating Services (“S&P”), and Fitch Ratings. If no rating is available from a rating agency, then an internally derived rating is used.

(2)

The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.

(3)

Includes corporate, foreign governement and state entities.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2018 and 2017, the Company’s outstanding derivative instruments, shown in notional or contract amounts and fair value, are summarized as follows:

Contract or Notional Amount*

Fair Value

2018

2017

2018

2017

Derivative assets:

Credit default swaps

271,000

197,560

6,361

9,101

Currency swaps

46,958

10,508

4,009

632

Equity futures

–

168

–

Equity swaps

259,244

15,108

15,770

365

Interest rate futures

2,368

–

Interest rate swaps

1,735,499

1,954,250

79,466

77,435

Derivative liabilities:

Credit default swaps

237,455

239,755

(340

)

(3,130

)

Currency swaps

31,607

50,927

2,391

5,785

Equity futures

–

458

–

Equity swaps

4,229

395,063

410

9,795

Interest rate futures

–

141

–

Interest rate swaps

1,463,319

1,596,069

49,615

44,303

*	Futures are presented in contract format. Swaps and options are presented in notional format.

Restricted Assets

The following tables show the pledged or restricted assets as of December 31, 2018 and 2017, respectively:

Gross Restricted (Admitted & Nonadmitted)

2018

Restricted Asset Category

Total General
Account (G/A)

G/A Supporting
Separate
Account (S/A)
Activity

Total S/A
Restricted Assets

S/A Assets
Supporting G/A
Activity

Total

Collateral held under security lending agreements

319,246

–

319,246

Subject to dollar repurchase agreements

–

FHLB capital stock

1,115

–

1,115

On deposit with states

2,910

–

2,910

Pledged as collateral not captured in other categories

59,054

–

59,054

Total Restricted Assets

382,325

–

382,325

Gross (Admitted & Nonadmitted) Restricted

Percentage

Restricted Asset Category

Total From
Prior Year
(2017)

Increase/
(Decrease)

Total
Nonadmitted
Restricted

Total Admitted
Restricted

Gross (Admitted

& Nonadmitted)
Restricted

to Total

Assets

Admitted
Restricted to
Total
Admitted
Assets

Collateral held under security lending agreements

417,915

(98,669

)

–

319,246

1.08

Subject to dollar repurchase agreements

203,456

(203,456

)

–

0.00

FHLB capital stock

–

1,115

–

1,115

0.00

On deposit with states

2,672

238

–

2,910

0.01

Pledged as collateral not captured in other categories

37,841

21,213

–

59,054

0.20

Total Restricted Assets

661,884

(279,559

)

–

382,325

1.30

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following table shows the pledged or restricted assets in other categories as of December 31, 2018 and 2017, respectively:

Gross (Admitted & Nonadmitted) Restricted

2018

Description of Assets

Total General
Account (G/A)

G/A Supporting
S/A Activity

Total Separate
Account (S/A)
Restricted
Assets

S/A Assets
Supporting

G/A Activity

Total

Derivatives

59,054

–

59,054

Total

59,054

–

59,054

Gross (Admitted &

Nonadmitted) Restricted

Percentage

Description of Assets

Total From
Prior Year
(2017)

Increase/
(Decrease)

Total Current
Year Admitted
Restricted

Gross
(Admitted &
Nonadmitted)
Restricted to
Total Assets

Admitted
Restricted to
Total Admitted
Assets

Derivatives

37,841

21,213

–

20.00

0.00

Total

37,841

21,213

–

20.00

0.00

The following tables show the collateral received and reflected as assets within the financial statements as of December 31, 2018 and 2017:

December 31, 2018

Collateral Assets

Carrying Value

Fair Value

% of CV to
Total Assets
(Admitted and
Nonadmitted)

% of CV to
Total Admitted
Assets

Cash

60,144

60,143

0.71

0.72

Securities lending collateral assets

308,971

308,970

3.66

3.67

Other

1,000

0.01

Total

370,115

370,113

4.38

4.40

Amount

% of Liability to
Total Liabilities

Recognized Obligation to return collateral asset

370,115

5.06%

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)


December 31, 2017
Collateral Assets	Carrying Value		Fair Value		% of CV to Total Assets (Admitted and Nonadmitted)			% of CV to Total Admitted Assets
Cash	$	252,176	$	252,176		2.82	%		2.84	%
Securities lending collateral assets		418,193		418,186		4.68			4.71

Total	$	670,369	$	670,362		7.50	%		7.55	%


	Amount		% of Liability to Total Liabilities

Recognized Obligation to return collateral asset	$	670,928		8.56%

Net Investment Income

Detail of net investment income is presented below:


	Year Ended December 31
	2018			2017		2016

Income:
Bonds	$	272,981		$	289,465	$	321,213
Preferred stocks		243			200		148
Mortgage loans on real estate		58,296			56,300		47,305
Policy loans		7,631			6,910		7,319
Cash, cash equivalents and short-term investments		5,267			4,581		2,412
Derivatives		23,075			22,232		21,572
Other invested assets		(5,079	)		4,140		12,836

Gross investment income		362,414			383,828		412,805
Less: investment expenses		19,356			23,021		17,277

Net investment income before amortization of IMR		343,058			360,807		395,528
Amortization of IMR		7,577			10,927		12,802

Net investment income	$	350,635		$	371,734	$	408,329

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Realized Capital Gains (Losses)

Net realized capital gains (losses) on investments, including OTTI, are summarized below:


				Realized
	Year Ended December 31
	2018			2017			2016


Bonds	$	(24,749	)	$	35,069		$	3,214
Common stocks		–			(63	)		32
Mortgage loans on real estate		(54	)		968			(698	)
Real estate		(3,631	)		–			–
Cash, cash equivalents and short-term investments		(18	)		(12	)		9
Derivatives		(37,656	)		(72,133	)		(16,280	)
Other invested assets		8,386			6,744			(12,505	)

Change in realized capital gains (losses), before taxes		(57,722	)		(29,427	)		(26,228	)
Federal income tax effect		7,004			(13,315	)		(2,833	)
Transfer from (to) interest maintenance reserve		19,342			(28,197	)		(6,516	)

Net realized capital gains (losses) on investments	$	(31,376	)	$	(70,939	)	$	(35,577	)

Unrealized Capital Gains (Losses)

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


	Change in Unrealized

	Year Ended December 31
	2018			2017			2016


Bonds	$	(3,714	)	$	7,788		$	4,433
Common stocks		–			–			10
Affiliated entities		634			(182	)		136
Cash equivalents and short-term investments		14			(11	)		(9	)
Derivatives		20,814			33,650			(30,961	)
Other invested assets		(4,918	)		5,015			10,833

Change in unrealized capital gains (losses), before taxes		12,830			46,260			(15,558	)
Taxes on unrealized capital gains (losses)		559			(2,210	)		(5,366	)

Change in unrealized capital gains (losses), net of tax	$	13,389		$	44,050		$	(20,924	)

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

6. Premium and Annuity Considerations Deferred and Uncollected

Deferred and uncollected life premium and annuity considerations, net of reinsurance, at December 31, 2018 and 2017 were as follows:

2018

2017

Gross

Net of Loading

Gross

Net of Loading

Life and annuity:

Ordinary first-year business

116

168

Ordinary renewal business

4,710

3,898

4,943

4,054

Group life direct business

235

170

282

203

Credit direct business

5,081

4,108

5,410

4,299

7. Policy and Contract Attributes

Insurance Liabilities

Policy reserves, deposit funds and policy claims at December 31, 2018 and 2017 were as follows:


	Year Ended December 31
	2018		2017


Life insurance reserves	$	1,195,740	$	1,091,646
Annuity reserves and supplementary contracts with life contingencies		5,236,604		5,466,545
Accident and health reserves (including long term care)		207,230		209,371

Total policy reserves	$	6,639,574		6,767,562

Deposit funds		29,504		29,590
Policy claims		41,237		40,142

Total policy reserves, deposit funds and claim liabilities	$	6,710,315	$	6,837,294

Life Insurance Reserves

The aggregate policy reserves for life insurance policies are based principally upon the 1941, 1958, 1980 and 2001 Commissioner’s Standard Ordinary Mortality Tables. The reserves are calculated using interest rates ranging from 2.00 to 7.25 percent and are computed principally on the Net Level Premium Valuation and the Commissioner’s Reserve Valuation Method. Reserves for universal life policies are based on account balances adjusted for the Commissioner’s Reserve Valuation Method.

Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula.

The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium for periods beyond the date of death.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

The Company anticipates investment income as a factor in premium deficiency calculation, in accordance with SSAP No. 54, Individual and Group Accident and Health Contracts. As of December 31, 2018 and 2017, the Company had insurance in force aggregating $6,838,334 and $4,547,476, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the NYDFS. The Company established policy reserves of $1,856,580 and $216,675 to cover these deficiencies as of December 31, 2018 and 2017, respectively.

The Company does not issue participating life insurance policies.

Annuity Reserves and Supplementary Contracts Involving Life Contingencies

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 2.50 to 11.00 percent and mortality rates, where appropriate, from a variety of tables.

Annuity reserves also include GICs and funding agreements classified as life-type contracts as defined in SSAP No. 50, Classifications 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 a cash settlement option, on a change in fund basis, according to the Commissioner’s Annuity Reserve Valuation Method.

For variable annuities with guaranteed living benefits and variable annuities with minimum guaranteed death benefits the Company complies with Valuation Manual section 21 (VM-21), Requirements for Principle-Based Reserves for Variable Annuities, which replaced Actuarial Guideline XLIII (AG 43) effective January 1, 2017. VM-21 specifies statutory reserve requirements for variable annuity contracts with benefit guarantees (VACARVM) and without benefit guarantees and related products. The VM-21 reserve calculation 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 VM-21 is equal to the conditional tail expectation (CTE) amount, but not less than the standard scenario amount (SSA).

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 VM-21 for determining the SSA.

Accident and Health Liabilities

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, 2018
2018	$	-	$	63,281		$	37,443		25,838
2017 and prior		33,072		(4,909	)		22,325		5,838

		33,072	$	58,372		$	59,768		31,676

Active life reserve	$	196,199						$	196,895

Total accident and health reserves	$	229,271						$	228,571


	Unpaid Claims Liability Beginning of Year		Claims Incurred			Claims Paid		Unpaid Claims Liability End of Year

Year ended December 31, 2017
2017	$	-	$	65,783		$	38,984	$	26,799
2016 and prior		37,843		(1,796	)		29,774		6,273

		37,843	$	63,987		$	68,758		33,072

Active life reserve	$	137,085						$	196,199

Total accident and health reserves	$	174,928						$	229,271

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company’s unpaid claims reserve was decreased by $4,909 and $1,796 for the years ended December 31, 2018 and 2017, respectively, for health claims that were incurred prior to those balance sheet dates. The change in 2018 and 2017 resulted primarily from variances in the estimated frequency of claims and claim severity.

The balance in the liability for unpaid accident and health claim adjustment expenses as of December 31, 2018 and 2017 was $647 and $629, respectively. The Company incurred $556 and paid $538 of claim adjustment expenses during 2018, of which $248 of the paid amount was attributable to insured or covered events of prior years. The Company incurred $338 and paid $456 of claim adjustment expenses during 2017, of which $125 of the paid amount was attributable to insured or covered events of prior years. The Company did not increase or decrease the claim adjustment expense provision for insured events of prior years during 2018.

Deposit-type Contracts

Tabular interest on funds not involving life contingencies has also been determined primarily by formula.

Withdrawal Characteristics of Annuity Reserves and Deposit Funds

December 31
2018

General
Account

Separate
Account with
Guarantees

Separate
Account Non-
Guaranteed

Total

Percent

Subject to discretionary withdrawal with adjustment:

With fair value adjustment

688,335

76,009

–

764,344

At book value less surrender charge of 5% or more

787,440

31,986

–

819,426

At fair value

21,022

380,808

16,964,928

17,366,758

Total with adjustment or at fair value

1,496,797

488,803

16,964,928

18,950,528

At book value without adjustment (minimal or no charge or adjustment)

3,091,233

44,431

–

3,135,664

Not subject to discretionary withdrawal provision

660,739

2,034,396

1,119,330

3,814,465

Total annuity reserves and deposit liabilities

5,248,769

2,567,630

18,084,258

25,900,657

100

Less reinsurance ceded

356

–

356

Net annuity reserves and deposit liabilities

5,248,413

2,567,630

18,084,258

25,900,301

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)


	December 31 2017


	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent

Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	706,614	$	80,616	$	–	$	787,230		2	%
At book value less surrender charge of 5% or more		812,459		33,559		–		846,018		3
At fair value		23,452		366,460		18,903,140		19,293,052		64

Total with adjustment or at fair value		1,542,525		480,635		18,903,140		20,926,300		69
At book value without adjustment (minimal or no charge or adjustment		3,281,614		46,613		–		3,328,227		11
Not subject to discretionary withdrawal provision		654,059		4,188,761		1,202,256		6,045,076		20

Total annuity reserves and deposit liabilities		5,478,198		4,716,009		20,105,396		30,299,603		100	%

Less reinsurance ceded		1,063		–		–		1,063

Net annuity reserves and deposit liabilities	$	5,477,135	$	4,716,009	$	20,105,396	$	30,298,540

Separate Accounts

Separate account assets held by the Company represent contracts where the benefit is determined by the performance of the investments held in the separate account. Information regarding the separate accounts of the Company as of and for the years ended December 31, 2018, 2017 and 2016 is as follows:

Nonindexed
Guarantee

Less Than or
Equal to 4%

Nonguaranteed
Separate
Accounts

Total

Premiums, deposits and other considerations
for the year ended December 31, 2018

811,589

3,720,484

4,532,073

Reserves for separate accounts as of
December 31, 2018 with assets at:

Fair value

–

18,313,645

Amortized cost

2,567,630

–

2,567,630

Total as of December 31, 2018

2,567,630

18,313,645

20,881,275

Reserves for separate accounts by withdrawal
characteristics as of December 31, 2018:

With MV adjustment

76,009

–

76,009

At book value without fair value adjustment and with current surrender charge of 5% or more

31,986

–

31,986

At fair value

380,808

17,194,315

17,575,123

At book value without fair value adjustment and with current surrender charge of less than 5%

44,431

–

44,431

Subtotal

533,234

17,194,315

17,727,549

Not subject to discretionary withdrawal

2,034,396

1,119,330

3,153,726

Total separate account reserves at December 31, 2018

2,567,630

18,313,645

20,881,275

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)


	Nonindexed Guarantee Less Than or Equal to 4%		Nonguaranteed Separate Accounts		Total

Premiums, deposits and other considerations for the year ended December 31, 2017	$	1,110,527	$	3,367,720	$	4,478,247


Reserves for separate accounts as of December 31, 2017 with assets at:
Fair value	$	–	$	20,362,611	$	20,362,611
Amortized cost		4,716,009		–		4,716,009

Total as of December 31, 2017	$	4,716,009	$	20,362,611	$	25,078,620


Reserves for separate accounts by withdrawal characteristics as of December 31, 2017:
With MV adjustment	$	80,616	$	–	$	80,616
At book value without fair value adjustment and with current surrender charge of 5% or more		33,559		–		33,559
At fair value		366,460		19,160,356		19,526,816
At book value without fair value adjustment and with current surrender charge of less than 5%		46,613		–		46,613

Subtotal		527,248		19,160,356		19,687,604
Not subject to discretionary withdrawal		4,188,761		1,202,255		5,391,016

Total separate account reserves at December 31, 2017	$	4,716,009	$	20,362,611	$	25,078,620


	Nonindexed Guarantee Less Than or Equal to 4%		Nonguaranteed Separate Accounts		Total

Premiums, deposits and other considerations for the year ended December 31, 2016	$	1,396,422	$	3,296,786	$	4,693,208


Reserves for separate accounts as of December 31, 2016 with assets at:
Fair value	$	–	$	17,329,112	$	17,329,112
Amortized cost		5,546,624		–		5,546,624

Total as of December 31, 2016	$	5,546,624	$	17,329,112	$	22,875,736


Reserves for separate accounts by withdrawal characteristics as of December 31, 2016:
Subject to discretionary withdrawal:	$	87,114	$	–	$	87,114
At book value without fair value adjustment and with current surrender charge of 5% or more		35,845		–		35,845
At fair value		366,825		16,062,554		16,429,379
At book value without fair value adjustment and with current surrender charge of less than 5%		49,768		–		49,768

Subtotal		539,552		16,062,554		16,602,106
Not subject to discretionary withdrawal		5,007,072		1,266,558		6,273,630

Total separate account reserves at December 31, 2016	$	5,546,624	$	17,329,112	$	22,875,736

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

A reconciliation of the amounts transferred to and from the Company’s separate accounts is presented below:


	Year Ended December 31
	2018			2017			2016

Transfer as reported in the summary of operations of the separate accounts statement:
Transfers to separate accounts	$	4,533,285		$	4,478,824		$	4,693,348
Transfers from separate accounts		(7,472,749	)		(4,941,012	)		(4,789,961	)

Net transfers to separate accounts		(2,939,464	)		(462,188	)		(96,613	)
Miscellaneous reconciling adjustments		14,160			9,916			17,332

Net transfers as reported in the statements of operations of the life, accident and health annual statement	$	(2,925,304	)	$	(452,272	)	$	(79,281	)

The legal insulation of separate account assets prevents such assets from being generally available to satisfy claims resulting from the general account. The separate account assets legally insulated from the general account claims at December 31, 2018 and 2017 are attributed to the following products:


	2018		2017

Variable life	$	234,854	$	263,452
Variable annuities		4,486,780		4,895,012
Group annuities		10,821,405		12,104,424
Registered Market value separate accounts		669,531		785,378
Non Registered Market value separate accounts		778,969		918,799
Par annuities		1,440,469		1,537,838
Registered Market value Annuity Product - SPL		2,032		1,998
Book value separate accounts		2,609,935		4,769,953

Total separate account assets	$	21,043,975	$	25,276,854

At December 31, 2018 and 2017, the Company held separate account assets not legally insulated from the general account in the amount of $25,895 and $27,421, respectively, related to variable annuity products.

Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. To compensate the general account for the risk taken, the separate account paid risk charges of $50,888, $48,314, $46,668, $42,677, and $40,314 to the general account in 2018, 2017, 2016, 2015, and 2014, respectively. During the years ended December 31, 2018, 2017, 2016, 2015, and 2014 the general account of the Company had paid $615, $1,009, $1,627, $1,671, and $530 respectively, toward separate account guarantees.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2018 and 2017, the Company reported guaranteed separate account assets at amortized cost in the amount of $2,609,935 and $4,769,953, respectively, based upon the prescribed practice by the State of New York as described in Note 2. These assets had a fair value of $2,558,199 and $4,755,155 at December 31, 2018 and 2017, respectively, which would have resulted in an unrealized (loss) of ($51,735) and ($14,798), respectively, had these assets been reported at fair value.

The Company does not participate in securities lending transactions within the separate account.

8. Reinsurance

Premiums and annuity considerations include the following reinsurance amounts:


	Year Ended December 31
	2018			2017			2016


Direct premiums	$	5,770,058		$	5,504,653		$	5,786,774
Reinsurance assumed - non affiliates		446,450			520,633			529,283
Reinsurance assumed - affiliates		18			34			50
Reinsurance ceded - non affiliates		(300,323	)		(668,328	)		(341,356	)
Reinsurance ceded - affiliates		(162,384	)		(198,406	)		(199,490	)

Net premiums earned	$	5,753,819		$	5,158,585		$	5,775,260

The Company received reinsurance recoveries in the amounts of $390,435, $491,641 and $430,476 during 2018, 2017 and 2016, respectively. At December 31, 2018 and 2017, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $209,583 and $124,183, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2018 and 2017 of $4,117,520 and $2,534,611, respectively, of which $1,830,363 and $1,527,241 were ceded to affiliates.

Effective June 29, 2018, the Company and Wilton Re U. S. Holdings, Inc. (Wilton Re) entered into an agreement as to the “Final Net Settlement Statements and Other Matters” (NSS) associated with the reinsurance agreement between the two companies that was effective April 1, 2017. This agreement related to the reinsurance of the payout annuity and Bank Owned Life Insurance/ Corporate Owned Life Insurance business (BOLI/COLI) to Wilton Re. As a result of the mutual concessions between the parties, the Company paid Wilton Re $599. In addition, the Company released a reinsurance receivable in the amount of $23 related to the initial proposed NSS used for closing. The net pretax impact to capital and surplus of these adjustments was $576.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

On June 28, 2017, Transamerica completed a transaction to reinsure its payout annuity business and BOLI/COLI. Under the terms of the Master Agreement, the Company entered into a 90% coinsurance reinsurance agreement with Wilton Reassurance Company, with an effective date of April 1, 2017. The Company transferred assets in the amount of $386,087 which included a ceding commission of $26,368, and released policy and deposit-type reserves of $315,651. As a part of the transaction, the Company realized net gains on the assets that were transferred of $39,030. The IMR deferral of the transaction was $25,813. The IMR liability was simultaneously released along with historical deferrals associated with the blocks of business in the amount of $29,374, resulting in a pretax loss of $27,845, which has been included in the statement of operations.

During 2018, 2017 and 2016, amortization of deferred gains associated with previously transacted reinsurance agreements was released into income in the amount of $31,034 ($20,172 after tax), $109,532 ($71,196 after tax) and $93,916 ($61,046 after tax), respectively.

9. Income Taxes

The components of the net deferred tax asset/(liability) at December 31 are as follows:


	December 31, 2018
	Ordinary			Capital			Total

Gross Deferred Tax Assets	$	81,661		$	10,046		$	91,707
Statutory Valuation Allowance Adjustment		–			–			–

Adjusted Gross Deferred Tax Assets		81,661			10,046			91,707
Deferred Tax Assets Nonadmitted		30,871			–			30,871

Subtotal (Net Deferred Tax Assets)		50,790			10,046			60,836
Deferred Tax Liabilities		24,060			9,421			33,481

Net Admitted Deferred Tax Assets	$	26,730		$	625		$	27,355


	December 31, 2017
	Ordinary			Capital			Total

Gross Deferred Tax Assets	$	84,559		$	9,994		$	94,553
Statutory Valuation Allowance Adjustment		–			–			–

Adjusted Gross Deferred Tax Assets		84,559			9,994			94,553
Deferred Tax Assets Nonadmitted		31,427			–			31,427

Subtotal (Net Deferred Tax Assets)		53,132			9,994			63,126
Deferred Tax Liabilities		23,132			10,294			33,426

Net Admitted Deferred Tax Assets	$	30,000		$	(300	)	$	29,700


	Ordinary			Change Capital			Total

Gross Deferred Tax Assets	$	(2,898	)	$	52		$	(2,846	)
Statutory Valuation Allowance Adjustment		–			–			–

Adjusted Gross Deferred Tax Assets		(2,898	)		52			(2,846	)
Deferred Tax Assets Nonadmitted		(556	)		–			(556	)

Subtotal (Net Deferred Tax Assets)		(2,342	)		52			(2,290	)
Deferred Tax Liabilities		928			(873	)		55

Net Admitted Deferred Tax Assets	$	(3,270	)	$	925		$	(2,345	)

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The main components of deferred income tax amounts are as follows:


	Year Ended December 31
	2018		2017		Change

Deferred Tax Assets:
Ordinary
Policyholder reserves	$	45,500	$	47,942	$	(2,442	)
Investments		1,355		1,199		156
Deferred acquisition costs		18,825		16,192		2,633
Compensation and benefits accrual		832		1,070		(238	)
Receivables - nonadmitted		1,199		3,322		(2,123	)
Assumption Reinsurance		721		1,231		(510	)
Policyholder Reserve Transitional Amount		11,173		11,976		(803	)
Other (including items <5% of ordinary tax assets)		2,056		1,627		429

Subtotal		81,661		84,559		(2,898	)

Nonadmitted		30,871		31,427		(556	)

Admitted ordinary deferred tax assets		50,790		53,132		(2,342	)
Capital
Investments		10,046		9,994		52

Subtotal		10,046		9,994		52


Admitted capital deferred tax assets		10,046		9,994		52

Admitted deferred tax assets	$	60,836	$	63,126	$	(2,290	)


	Year Ended December 31
	2018		2017		Change

Deferred Tax Liabilities:
Ordinary
Investments	$	432	$	686	$	(254	)
Policyholder reserves		4,750		3,465		1,285
Reinsurance Ceded		4,323		5,025		(702	)
Policyholder Reserve Transitional Amount		14,555		13,956		599

Subtotal		24,060		23,132		928

Capital
Investments		9,421		10,294		(873	)

Subtotal		9,421		10,294		(873	)


Deferred tax liabilities		33,481		33,426		55

Net deferred tax assets/liabilities	$	27,355	$	29,700	$	(2,345	)

On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) (HR 1, Pub. L. 115-97) became law reducing the federal tax rate to 21%. As a result, the Company reduced its net deferred tax asset balance by $39,281, excluding $1,470 of net deferred tax asset reduction on unrealized gains/(losses) in the 2017 financial statements.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

As a result of the TCJA, the Company’s tax reserve deductible temporary difference increased by $18,403. This change results in an offsetting ($18,403) taxable temporary difference that will be amortized into taxable income evenly over the eight years subsequent to 2017. The tax reserve deductible temporary difference increased $8,977 from the estimate disclosed in the 2017 financials due to model refinements during 2018 to implement the TCJA provisions.

The Company did not report a valuation allowance for deferred income tax assets as of December 31, 2018 or 2017.

As discussed in Note 1, for the years ended December 31, 2018 and 2017 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, 2018

Ordinary

Capital

Total

Admission Calculation Components SSAP No. 101

2(a)

Federal Income Taxes Paid in Prior Years

Recoverable Through Loss Carrybacks

–

4,122

2(b)

23,234

–

23,234

Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date

23,234

–

23,234

Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold

XXX

159,473

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

27,556

5,924

33,480

2(d)

Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))

50,790

10,046

60,836

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)


			December 31, 2017
			Ordinary			Capital			Total

Admission Calculation Components SSAP No. 101
2(a)	Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks		$	–		$	6,594		$	6,594
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)			23,106			–			23,106
	1.	Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		23,106			–			23,106
	2.	Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX			XXX			153,103
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			30,026			3,400			33,426

2(d)	Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))		$	53,132		$	9,994		$	63,126


			Ordinary			Change Capital			Total

Admission Calculation Components SSAP No. 101
2(a)	Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks		$	–		$	(2,472	)	$	(2,472	)
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)			128			–			128
	1.	Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		128			–			128
	2.	Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX			XXX			6,370
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			(2,470	)		2,524			54

2(d)	Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))		$	(2,342	)	$	52		$	(2,290	)


	December 31
	2018			2017			Change

Ratio Percentage Used To Determine Recovery

Period and Threshold Limitation Amount		1191	%		1255	%		-64	%



Amount of Adjusted Capital and Surplus Used To Determine Recovery Period and Threshold Limitation in 2(b)2 above	$	1,063,153		$	1,020,686		$	42,467

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The impact of tax planning strategies at December 31, 2018 and 2017 was as follows:


	December 31, 2018
	Ordinary Percent			Capital Percent			Total Percent

Impact of Tax Planning Strategies:
(% of Total Adjusted Gross DTAs)		0	%		0	%		0	%

(% of Total Net Admitted Adjusted Gross DTAs)		17	%		32	%		19	%


		December 31, 2017
	Ordinary Percent			Capital Percent			Total Percent

Impact of Tax Planning Strategies:
(% of Total Adjusted Gross DTAs)		0	%		0	%		0	%

(% of Total Net Admitted Adjusted Gross DTAs)		15	%		31	%		18	%

The Company’s tax planning strategies do not include the use of reinsurance-related tax planning strategies.

Current income taxes incurred consist of the following major components:


	Year Ended December 31
	2018			2017		Change

Current Income Tax

Federal	$	9,990		$	26,972	$	(16,982	)

Subtotal		9,990			26,972		(16,982	)

Federal income tax on net capital gains		(7,004	)		13,315		(20,319	)

Federal and foreign income taxes incurred	$	2,986		$	40,287	$	(37,301	)


	Year Ended December 31
	2017			2016		Change

Current Income Tax

Federal	$	26,972		$	42,387	$	(15,415	)

Subtotal		26,972			42,387		(15,415	)

Federal income tax on net capital gains		13,315			2,834		10,481

Federal and foreign income taxes incurred	$	40,287		$	45,221	$	(4,934	)

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate to income before tax as follows:


	Year Ended December 31
	2018			2017			2016

Current income taxes incurred	$	2,986		$	40,287		$	45,221
Change in deferred income taxes (without tax on unrealized gains and losses)		3,459			32,885			(3,541	)

Total income tax reported	$	6,445		$	73,172		$	41,680


Income before taxes	$	184,083		$	227,142		$	276,716
		21.00%			35.00%			35.00%

Expected income tax expense (benefit) at statutory rate	$	38,657		$	79,500		$	96,851
Increase (decrease) in actual tax reported resulting from:

Dividends received deduction		(4,789	)		(7,859	)		(8,345	)
Tax credits		(18,371	)		(9,455	)		(2,925	)
Tax adjustment for IMR		(4,606	)		(17,533	)		(8,174	)
Surplus adjustment for in-force ceded		(4,236	)		(24,919	)		(21,366	)
Nondeductible expenses		182			37			35
Deferred tax benefit on other items in surplus		5,377			13,681			(7,243	)
Dividends from certain foreign corporations		150			189			137
Prior year tax return adjustment		(5,285	)		721			(2,049	)
Partnership Permanent Adjustment		(475	)		(592	)		(470	)
Change in tax rates		–			39,281			–
Audit Adjustment - Permanent		–			–			(4,972	)
Other		(159	)		121			201

Total income tax reported	$	6,445		$	73,172		$	41,680

As of December 31, 2018 and 2017, the Company had no operating loss, capital loss, or tax credit carryforwards available for tax purposes.

The Company incurred income taxes of $0, $13,188, and $0 during 2018, 2017, and 2016, respectively, which will be available for recoupment in the event of future net capital losses.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The total amount of the unrecognized tax benefits that if recognized, would affect the effective income tax rate:


	December 31,
	2018		2017

Unrecognized tax benefits, opening balance	$	1,745	$	1,673
Additions for - tax positions of prior years		472		72

Unrecognized tax benefits, ending balance	$	2,217	$	1,745

The Company does not expect that the total amounts of unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date.

The Company classifies interest and penalties related to income taxes as income tax expense. The Company’s interest expense (benefit) related to income taxes for the years ending in December 31, 2018, 2017, and 2016 is ($227), $433, and ($36), respectively. The total interest payable balance as of December 31, 2018 and 2017 is $447 and $674, respectively. The Company recorded no liability for penalties.

The Company modified its calculation of dividends that are eligible for dividends received deduction in 2016. This resulted in recording a permanent tax benefit of $4,770 in the Company’s 2016 financial statement for years 2011-2015. This was treated as a change in estimate.

The Company’s federal income tax returns have been examined by the IRS and an examination is in progress for the year 2009 through 2013. The Company believes that there are adequate defenses against or sufficient provisions established related to any open or contested tax positions.

10. Capital and Surplus

Prior to the redemption in 2018 and at December 31, 2017, the Company had 45,981 shares of 6% non-voting, cumulative preferred stock outstanding with a par value of $10. On December 13, 2018, the Company redeemed 45,981 shares of preferred stock at par of $460 plus additional contributed capital in the amount of $56,381 for a total of $56,841, paid to its shareholders; TA Corp received $49,679 and TLIC received $7,162. At December 31, 2018 and 2017, TA Corp owned 0 and 40,415 shares and TLIC owned 0 and 5,566 shares.

At December 31, 2018 and 2017, the Company had 17,142 common shares authorized, issued and outstanding with a par value of $125 per share. TA Corp owns 15,067 shares and TLIC owns 2,075 shares.

The Company is subject to limitations, imposed by the State of New York, on the payment of dividends to its stockholders. Generally, dividends during any year may not be paid, without prior regulatory approval, in excess of the lesser of (1) 10 percent of the Company’s statutory surplus as of the preceding December 31, or (2) the Company’s statutory gain from operations before net realized capital gains on investments for the preceding year. Subject to the availability of unassigned surplus at the time of such a dividend, the maximum payment which may be made in 2019, without prior approval of insurance regulatory authorities, is $109,051.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

On December 13, 2018 the Company paid its Parent companies, TLIC and TA Corp, preferred stock dividends of $430 and $2,981, respectively. On June 29, 2018 the Company paid ordinary common stock dividends of $12,105 to TLIC and $87,895 to TA Corp.

On December 21 and June 28, 2017 the Company paid ordinary common stock dividends of $9,075 and $10,289 to TLIC and $65,897 and $74,711 to TA Corp, respectively. On December 21, 2017 the Company paid preferred stock dividends of $3 to TLIC and $24 to TA Corp.

Life and health insurance companies are subject to certain RBC requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life and health insurance company is to be determined based on the various risk factors related to it. At December 31, 2018, the Company meets the minimum RBC requirements.

On May 2, 2008, the Company received $150,000 from TA Corp in exchange for surplus notes due 20 years from the date of the issuance at an interest rate of 6.25%. The notes are subordinate and junior in the right of payment to all obligations and liabilities of the Company. On December 22, 2016, the Company repaid TA Corp the principal and accrued interest of $9,167. The Company received approval from the Superintendent of Insurance of the NYDFS prior to issuance and repayment of the surplus notes as well as prior to making annual interest payments.

The Company held special surplus funds in the amount of $10,781 and $11,186, as of December 31, 2018 and 2017, respectively, for annuitant mortality fluctuations as required under New York Regulation 47, Separate Account and Separate Account Annuities.

11. 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 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, 2018 and 2017, respectively, securities with a fair value of $308,907 and $399,971 were on loan under securities lending agreements. At December 31, 2018, the collateral the Company received from securities lending 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 $308,970 and $418,186 at December 31, 2018 and 2017, respectively.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The contractual maturities of the securities lending collateral positions are as follows:


	Fair Value
	2018		2017

Open	$	319,246	$	417,915
30 days or less		–		–
31 to 60 days		–		–
61 to 90 days		–		–
Greater than 90 days		–		–

Total		319,246		417,915

Securities received		–		–

Total collateral received	$	319,246	$	417,915

The maturity dates of the reinvested securities lending collateral are as follows:

2018

2017

Amortized

Cost

Fair Value

Cost

Fair Value

Open

15,000

97,375

30 days or less

96,925

125,477

31 to 60 days

69,374

48,801

61 to 90 days

32,836

61,803

91 to 120 days

46,560

23,435

121 to 180 days

40,177

38,179

181 to 365 days

–

1 to 2 years

874

4,234

2 to 3 years

2,039

13,272

13,266

Greater than 3 years

5,186

5,185

5,617

5,616

Total

308,971

308,970

418,193

418,186

Securities received

–

Total collateral reinvested

308,971

308,970

418,193

418,186

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Collateral for securities lending transactions that extend beyond one year from the report date are as follows.


Description of collateral	2018		2017
ABS AUTOS	$	2,913	$	12,688
ABS CREDIT CARDS		5,186		10,437

Total collateral extending beyond one year of the reporting date	$	8,099	$	23,125

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 $309,659 (fair value of $308,970) that are currently tradable securities that could be sold and used to pay for the $319,246 in collateral calls that could come due under a worst-case scenario.

12. Retirement and Compensation Plans

Defined Contribution Plans

The Company’s employees participate in a contributory defined contribution plan sponsored by TA Corp which is qualified under Section 401(k) of the Internal Revenue Code. Generally, employees of the Company who customarily work at least 20 hours per week and meet the other eligibility requirements are participants of the plan. Participants may elect to contribute up to 100% of eligible earnings, subject to government or other plan restrictions for certain key employees. The Company will match an amount up to three percent of the participant’s eligible earnings. 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, as amended (ERISA). Benefits expense of $762, $703, and $714 was allocated to the Company for the years ended December 31, 2018, 2017 and 2016, respectively.

Defined Benefit Plans

The Company’s employees participate in a qualified defined benefit pension plan sponsored by TA Corp. Generally, employees of the Company who customarily work at least 20 hours per week and complete six months of continuous service and meet the other eligibility requirements are participants of the plan. The Company has no legal obligation for the plan. The benefits are based on years of service and the employee’s eligible compensation. The plan provides benefits based on a traditional final average formula or a cash balance formula. The plan is subject to the reporting and disclosure requirements of ERISA.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company recognizes pension expense equal to its allocation from TA Corp. The pension expense related to both the qualified defined pension plan and the supplemental retirement plans is allocated among the participating companies based on International Accounting Standards 19 (IAS 19), Accounting for Employee Benefits, and based upon actuarial participant benefit calculations, which is within the guidelines of SSAP 102, Pensions. Pension expenses were $1,490, $1,554 and $1,414 for the years ended December 31, 2018, 2017 and 2016, respectively.

In addition to pension benefits, TA Corp sponsors unfunded plans that provide health care and life insurance benefits to retired Company employees meeting certain eligibility requirements. The Company has no legal obligation for the 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 which is within the guidelines of SSAP 92, Postretirement Benefits Other Than Pensions. The Company’s allocation of postretirement expenses was $320, $374 and $257 for the years end December 31, 2018, 2017 and 2016, respectively.

Other Plans

13. Related Party Transactions

The Company shares certain officers, employees and general expenses with affiliated companies.

In accordance with an agreement between TA Corp and the Company, TA Corp will ensure the maintenance of certain minimum tangible net worth, operating leverage and liquidity levels of the Company, as defined in the agreement, through the contribution of additional capital by TA Corp as needed.

The Company is party to a service agreement with TLIC, in which the Company receives services, including accounting, data processing and other professional services, in consideration of reimbursement of the actual costs of services rendered. The Company is party to a Management and Administrative and Advisory agreement with Aegon USA Realty Advisors, Inc. (Advisor) whereby Advisor serves as the administrator and advisor for the Company’s mortgage loan operations. The Company is party to a common cost allocation service agreement between TA Corp 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. Aegon USA Investment Management, LLC acts as a discretionary investment manager under an Investment Management Agreement with the Company. The amount received by the Company as a result of being a party to these agreements was $44,781, $62,077 and $52,154, during 2018, 2017 and 2016, respectively. The amount paid as a result of being party to these agreements was $96,867, $104,502 and $103,294 during 2018, 2017 and 2016, respectively.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company has an administration service agreement with Transamerica Asset Management, Inc. to provide administrative services to the TA Corp/Transamerica Series Trust. The Company received $9,820, $10,367 and $9,203 for these services during 2018, 2017 and 2016, respectively.

Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $4,169, $3,484 and $5,196 for the years ended December 31, 2018, 2017 and 2016, respectively.

Payables to and receivables from affiliates and intercompany borrowings bear interest at the thirty-day commercial paper rate. During 2018, 2017 and 2016, the Company paid (received) net interest of $156, $60 and $47, respectively, to (from) affiliates. At December 31, 2018 and 2017, the Company reported a net amount of $2,645 and $3,002 receivable from affiliates, respectively. Terms of settlement require that these amounts are settled within 90 days.

At December 31, 2018, the Company had short-term intercompany notes receivable of $50,000 as shown below. In accordance with SSAP No. 25, Affiliates and Other Related Parties, these notes are reported as short-term investments.

Receivable from

Amount

Due By

Interest Rate

Transamerica Corporation

50,000

8/16/2019

1.97

At December 2017, the Company had short-term intercompany notes receivables of $124,300.

The Company utilizes the look-through approach in valuing its investment in the following five entities.


Real Estate Alternatives Portfolio 2, LLC	$	2,103
Real Estate Alternatives Portfolio 4 HR, LLC		5,517
Aegon Multi-Family Equity Fund, LLC		17,350
Natural Resources Alternatives Portfolio I, LLC		5,663
Zero Beta Fund, LLC		141,376

	$	172,009

These entity’s financial statements are not audited and the Company has limited the value of its investment in these entities to the value contained in the audited financial statements of the underlying LP/LLC investments, including adjustments required by SSAP No. 97, entities and/or non-SCA SSAP No. 48, Joint Ventures, Partnerships and Limited Liability Companies, entities owned by these entities. All liabilities, commitments, contingencies, guarantees or obligations of these entities which are required to be recorded as liabilities, commitments, contingencies, guarantees or obligations under applicable accounting guidance, are reflected in the Company’s determination of the carrying value of the investment in these entities.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables show the disclosures for all SCA investments, except 8bi entities, balance sheet value (admitted and nonadmitted) and the NAIC Responses for the SCA filings (except 8Bi entities) as of December 31, 2018:

SCA Entity

Percentage of

SCA
Ownership

Gross

Amount

Admitted

Amount

Nonadmitted

Amount

SSAP No. 97 8a Entities

–

Total SSAP No. 97 8a Entities

XXX

–

SSAP No. 97 8b(ii) Entities

–

Total SSAP No. 97 8b(ii) Entities

XXX

–

SSAP No. 97 8b(iii) Entities

REAL ESTATE ALTERN PORT 3A INC

3,932

–

Total SSAP No. 97 8b(iii) Entities

XXX

3,932

–

SSAP No. 97 8b(iv) Entities

–

Total SSAP No. 97 8b(iv) Entities

XXX

–

Total SSAP No. 97 8b Entities (except 8bi entities)

XXX

3,932

–

Aggregate Total

XXX

3,932

–

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

SCA Entity

Type of

NAIC

Filing *

Date of

Filing to the

NAIC

Valuation

Amount

NAIC

Response

Received

Y/N

NAIC

Disallowed

Entities

Valuation

Method,

Submission

Required

Y/N

Code**

SSAP No. 97 8a Entities

–

Total SSAP No. 97 8a Entities

–

SSAP No. 97 8b(ii) Entities

–

Total SSAP No. 97 8b(ii) Entities

–

SSAP No. 97 8b(iii) Entities

REAL ESTATE ALTERN PORT 3A INC

12/21/2018

2,889

–

Total SSAP No. 97 8b(iii) Entities

–

2,889

–

SSAP No. 97 8b(iv) Entities

–

Total SSAP No. 97 8b(iv) Entities

–

Total SSAP No. 97 8b Entities (except 8bi entities)

–

2,889

–

Aggregate Total

–

2,889

–

* S1 – Sub1, S2 – Sub2 or RDF – Resubmission of Disallowed Filing

** I – Immaterial or M – Material

⁽¹⁾ NAIC Valuation Amount is as of the Filing Date to the NAIC

Information regarding the Company’s affiliated reinsurance transactions is available in Note 8. Reinsurance.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

14. Managing General Agents

The Company utilizes managing general agents and third-party administrators in its operations. Information regarding these entities is as follows:

Name and Address of MGA/TPA

FEIN#

Exclusive

Contract

Type of Business

Written

Type of

Authority

Granted

Total Direct

Premiums

The Vanguard Group, Inc.

100 Vanguard Blvd

23-1945930

Deferred and Income
Annuities

C, B, P, U

60,163

Malvem, PA 19355

C - Claims Payment

B - Binding Authority

P - Premium Collection

U - Underwriting

For years ended December 31, 2018, 2017 and 2016, the Company had $60,163, $50,268 and $35,397, respectively, of direct premiums written by The Vanguard Group, Inc.

For years ended December 31, 2018, 2017 and 2016 the Company had $0, $0 and $0, respectively, of direct premiums written by Affinion Group.

15. Commitments and Contingencies

At December 31, 2018 and 2017, the Company has mortgage loan commitments of $33,752 and $21,261, respectively.

The Company has contingent commitments of $169,294 and $212,642, at December 31, 2018 and 2017, respectively, to provide additional funding for joint ventures, partnerships and limited liability companies. There are $149,810 and $196,409 in LIHTC commitments as of December 31, 2018 and 2017, respectively.

Private placement commitments outstanding as of December 31, 2018 and 2017 were $22,936 and $17,893, respectively.

At December 31, 2018 and 2017, securities in the amount of $2,387 and $0, respectively, were posted to the Company as collateral from derivative counterparties. The securities were not included on the Company’s balance sheet as the Company does not have the ability to sell or repledge the collateral.

The Company is a member of the FHLB of New York. The Company is not in an active borrowing position, therefore, collateral pledged and borrowings are not applicable for this Company. Through its membership, the Company establishes the option to access funds through secured borrowing arrangements with the FHLB.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2018 and 2017, the Company purchased/owned the following FHLB stock as part of the agreement:


	Year Ended December 31
	2018		2017

Activity Stock		1,115		–

Total	$	1,115	$	–

The Company is a party to legal proceedings involving a variety of issues incidental to its business. Lawsuits may be brought in nearly any federal or state court in the United States or in an arbitral forum. In addition, there continues to be significant federal and state regulatory activity relating to financial services companies. The Company’s legal proceedings are subject to many variables, and given its complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and punitive damages, and injunctive relief, it is management’s opinion that damages arising from such demands will not be material to the Company’s financial position.

The Company 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 Association. Potential future obligations for unknown insolvencies are not determinable by the Company and are not required to be accrued for financial reporting purposes. The Company has established a reserve of $77 and $115 at December 31, 2018 and 2017, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The Company had an offsetting premium tax benefit of $60 and $80 at December 31, 2018 and 2017, respectively. The guaranty fund expense (benefit) was ($254), ($3,412) and ($315) for the years ended December 31, 2018, 2017 and 2016, respectively.

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

16. Sales, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities

The Company enters into dollar repurchase agreements in which securities are delivered to the counterparty once adequate collateral has been received. As of December 31, 2018 and 2017, the Company had dollar repurchase agreements outstanding in the amount of $0 and $203,456, respectively. The Company had an outstanding liability for borrowed money in the amount $0 and $204,899 at December 31, 2018 and 2017, respectively due to participation in dollar repurchase agreements which includes accrued interest.

The contractual maturities of the dollar repurchase agreement positions are as follows:


	Fair Value
	2018		2017

Open	$	–	$	204,340
30 days or less		–		–
31 to 60 days		–		–
61 to 90 days		–		–
Greater than 90 days		–		–

Total		–		204,340
Securities received		–		–

Total collateral received	$	–	$	204,340

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. During 2018 and 2017 there were no securities sold and reacquired within 30 days of the sale date.

17. Subsequent Events

The financial statements are adjusted to reflect events that occurred between the balance sheet date and the date when the financial statements are available to be issued, 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, 2018 through April 23, 2019.

Transamerica Financial Life Insurance Company

Appendix A – Listing of Affiliated Companies


Transamerica Corporation EIN: 42-1484983 AFFILIATIONS SCHEDULE YEAR ENDED DECEMBER 31, 2018 Attachment to Note 9
Entity Name		FEIN
Transamerica Corporation		42-1484983
Aegon Asset Management Services Inc		39-1884868
Aegon Direct Marketing Services Inc		42-1470697
Aegon Financial Services Group Inc		41-1479568
Aegon Institutional Markets Inc		61-1085329
Aegon Management Company		35-1113520
Aegon USA Real Estate Services Inc		61-1098396
Aegon USA Realty Advisors of CA FKA Pensaprima Inc		20-5023693
AFSG Securities Corporation		23-2421076
AUSA Properties Inc		27-1275705
Commonwealth General Corporation		51-0108922
Creditor Resources Inc		42-1079584
CRI Solutions Inc		52-1363611
Financial Planning Services Inc		23-2130174
Firebird Reinsurance Corporation		47-3331975
Garnet Assurance Corporation		11-3674132
Garnet Assurance Corporation II		14-1893533
Garnet Assurance Corporation III		01-0947856
Intersecurities Ins Agency		42-1517005
LIICA RE II		20-5927773
Massachusetts Fidelity Trust		42-0947998
MLIC RE I Inc		01-0930908
Money Services Inc		42-1079580
Monumental General Administrators Inc		52-1243288
Pearl Holdings Inc I		20-1063558
Pearl Holdings Inc II		20-1063571
Pine Falls Re Inc		26-1552330
Real Estate Alternatives Portfolio 3A Inc		20-1627078
River Ridge Insurance Company		20-0877184
Short Hills Management		42-1338496
Southwest Equity General Company		86-0455577
Stonebridge Benefit Services Inc		75-2548428

Transamerica Financial Life Insurance Company

Appendix A – Listing of Affiliated Companies (continued)


Transamerica Corporation EIN: 42-1484983 AFFILIATIONS SCHEDULE YEAR ENDED DECEMBER 31, 2018 Attachment to Note 9
Entity Name		FEIN
Stonebridge Reinsurance Company		61-1497252
TCF Asset Management Corp		84-0642550
TCFC Air Holdings Inc		32-0092333
TCFC Asset Holdings Inc		32-0092334
TLIC Oakbrook Reinsurance Inc.		47-1026613
TLIC Riverwood Reinsurance Inc		45-3193055
TLIC Watertree Reinsurance, Inc.		81-3715574
Transamerica Advisors Life Insurance Company (FKA MLLIC)		91-1325756
Transamerica Accounts Holding Corp		36-4162154
Transamerica Affinity Services Inc		42-1523438
Transamerica Affordable Housing Inc		94-3252196
Transamerica Agency Network Inc (FKA: Life Inv Fin Group)		61-1513662
Transamerica Asset Management (fka Transamerica Fund Advisors)		59-3403585
Transamerica Capital Inc		95-3141953
Transamerica Casualty Insurance Company		31-4423946
Transamerica Commercial Finance Corp I		94-3054228
Transamerica Consumer Finance Holding Company		95-4631538
Transamerica Corporation (OREGON)		98-6021219
Transamerica Distribution Finance Overseas Inc		36-4254366
Transamerica Finance Corporation		95-1077235
Transamerica Financial Advisors FKA InterSecurities		59-2476008
Transamerica Financial Life Insurance Company		36-6071399
Transamerica Fund Services Inc		59-3403587
Transamerica Home Loan		95-4390993
Transamerica International Re (Bermuda) Ltd		98-0199561
Transamerica Investors Securities Corp		13-3696753
Transamerica Leasing Holdings Inc		13-3452993
Transamerica Life Insurance Company		39-0989781
Transamerica Pacific Insurance Co Ltd		94-3304740
Transamerica Premier Life Insurance Company		52-0419790
Transamerica Resources Inc (FKA: Nat Assoc Mgmt)		52-1525601
Transamerica Small Business Capital Inc		36-4251204

Transamerica Financial Life Insurance Company

Appendix A – Listing of Affiliated Companies (continued)


Transamerica Corporation EIN: 42-1484983 AFFILIATIONS SCHEDULE YEAR ENDED DECEMBER 31, 2018 Attachment to Note 9
Entity Name		FEIN
Transamerica Stable Value Solutions Inc		27-0648897
Transamerica Vendor Financial Services Corporation		36-4134790
United Financial Services Inc		52-1263786
WFG China Holdings Inc		20-2541057
World Fin Group Ins Agency of Massachusetts Inc		04-3182849
World Financial Group Inc		42-1518386
World Financial Group Ins Agency of Hawaii Inc		99-0277127
World Financial Group Insurance Agency of WY Inc		42-1519076
World Financial Group Insurance Agency		95-3809372
Zahorik Company Inc		95-2775959
Zero Beta Fund LLC		26-1298094

Statutory-Basis

Financial Statement Schedule

Transamerica Financial Life Insurance Company

Summary of Investments – Other Than

Investments in Related Parties

(Dollars in Thousands)

December 31, 2018

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

461,151

533,370

472,212

States, municipalities and political subdivisions

30,758

32,621

30,758

Foreign governments

95,844

99,466

95,844

Hybrid securities

111,973

101,741

111,973

All other corporate bonds

4,940,423

4,944,741

4,938,086

Preferred stocks

4,552

4,290

4,552

Total fixed maturities

5,644,701

5,716,229

5,653,425

Equity securities

Common stocks:

Industrial, miscellaneous and all other

1,115

Total equity securities

1,115

Mortgage loans on real estate

1,480,920

Real estate

–

Policy loans

130,605

Other long-term investments

36,467

Receivable for securities

Securities lending

308,971

Cash, cash equivalents and short-term investments

280,590

Total investments

7,883,430

7,892,154

(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 $4,946 are held at fair value rather than amortized cost due to having an NAIC 6 rating. No preferred stock securities are held at fair value of $0 due to having an NAIC 6 rating.

Transamerica Financial 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, 2018
Individual life	$	1,144,735	$	–	$	17,698	$	165,615		$	47,990	$	189,660	$	63,239
Individual health		72,413		3,921		12,785		45,825			3,709		12,540		18,262
Group life and health		197,548		2,352		9,745		77,157			8,559		58,907		20,799
Annuity		5,218,604		–		1,009		5,465,222			238,546		8,586,259		(2,773,794	)
Other		–		–		–		–			51,831		–		–

	$	6,633,300	$	6,273	$	41,237	$	5,753,819		$	350,635	$	8,847,366	$	(2,671,494	)


Year ended December 31, 2017
Individual life	$	1,045,834	$	–	$	18,135	$	(1,299	)	$	47,944	$	18,776	$	57,492
Individual health		85,754		4,305		10,860		49,066			3,206		72,440		14,485
Group life and health		181,571		2,554		10,627		79,899			8,035		63,981		31,511
Annuity		5,447,545		–		519		5,030,921			259,675		5,683,831		(315,328	)
Other		–		–		–		–			52,874		–		–

	$	6,760,704	$	6,859	$	40,141	$	5,158,587		$	371,734	$	5,839,028	$	(211,840	)


Year ended December 31, 2016
Individual life	$	1,118,498	$	–	$	18,281		157,318		$	53,602	$	182,963	$	75,668
Individual health		43,800		5,321		11,729		62,058			3,431		19,448		17,692
Group life and health		162,148		2,811		11,317		80,133			8,554		55,385		32,104
Annuity		5,806,086		–		686		5,475,752			293,132		5,750,859		114,033
Other		–		–		–		–			49,610		–		–

	$	7,130,532	$	8,132	$	42,013	$	5,775,261		$	408,330	$	6,008,655	$	239,497

*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

Transamerica Financial 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, 2018
Life insurance in force	$	25,896,718	$	142,547,888	$	139,964,032	$	23,312,862		600%


Premiums:
Individual life	$	182,304	$	456,379	$	439,690	$	165,615		265%
Individual health		45,880		90		35		45,825		0%
Group life and health		81,286		5,253		1,124		77,157		1%
Annuity		5,460,588		985		5,619		5,465,222		0%

	$	5,770,058	$	462,707	$	446,468	$	5,753,819		8%


Year ended December 31, 2017
Life insurance in force	$	25,419,746	$	154,374,478	$	151,926,555	$	22,971,822		661%


Premiums:
Individual life	$	179,651	$	694,892	$	513,942	$	(1,299	)	-39579%
Individual health		49,240		194		20		49,065		0%
Group life and health		81,890		3,073		1,081		79,898		1%
Annuity		5,193,872		168,576		5,624		5,030,920		0%

	$	5,504,653	$	866,735	$	520,667	$	5,158,584		10%


Year ended December 31, 2016
Life insurance in force	$	25,466,212	$	172,845,130	$	170,252,105	$	22,873,187		744%


Premiums:
Individual life	$	172,726	$	536,674	$	521,267	$	157,319		331%
Individual health		62,606		604		56		62,058		0%
Group life and health		81,420		3,235		1,948		80,133		2%
Annuity		5,470,023		333		6,062		5,475,752		0%

	$	5,786,775	$	540,846	$	529,333	$	5,775,262		9%

FINANCIAL STATEMENTS

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Years Ended December 31, 2018 and 2017

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Financial Statements

Years Ended December 31, 2018 and 2017

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			5
Notes to Financial Statements			30

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Transamerica Financial Life Insurance Company and the Contract Owners of Separate Account VA BNY

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities of each of the subaccounts of Separate Account VA BNY indicated in the table below as of December 31, 2018, and the related statements of operations and changes in net assets for each of the periods indicated in the table below, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the subaccounts in the Separate Account VA BNY as of December 31, 2018, and the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.


AB Balanced Wealth Strategy Class B Shares (1)		TA Jennison Growth Service Class (1)
AB Growth and Income Class B Shares (1)		TA JPMorgan Asset Allocation - Conservative Initial Class (1)
AB Large Cap Growth Class B Shares (1)		TA JPMorgan Asset Allocation - Conservative Service Class (1)
American Funds - Asset Allocation Class 2 Shares (1)		TA JPMorgan Asset Allocation - Growth Initial Class (1)
American Funds - Bond Class 2 Shares (1)		TA JPMorgan Asset Allocation - Growth Service Class (1)
American Funds - Growth Class 2 Shares (1)		TA JPMorgan Asset Allocation - Moderate Initial Class (1)
American Funds - Growth-Income Class 2 Shares (1)		TA JPMorgan Asset Allocation - Moderate Service Class (1)
American Funds - International Class 2 Shares (1)		TA JPMorgan Asset Allocation - Moderate Growth Initial Class (1)
Fidelity® VIP Balanced Service Class 2 (1)		TA JPMorgan Asset Allocation - Moderate Growth Service Class (1)
Fidelity® VIP Contrafund® Initial Class (1)		TA JPMorgan Core Bond Service Class (1)
Fidelity® VIP Contrafund® Service Class 2 (1)		TA JPMorgan Enhanced Index Initial Class (1)
Fidelity® VIP Equity-Income Service Class 2 (1)		TA JPMorgan Enhanced Index Service Class (1)
Fidelity® VIP Growth Service Class 2 (1)		TA JPMorgan International Moderate Growth Service Class (1)
Fidelity® VIP Growth Opportunities Service Class 2 (1)		TA JPMorgan Mid Cap Value Service Class (1)
Fidelity® VIP Mid Cap Initial Class (1)		TA JPMorgan Tactical Allocation Service Class (1)
Fidelity® VIP Mid Cap Service Class 2 (1)		TA Legg Mason Dynamic Allocation - Balanced Service Class (1)
Fidelity® VIP Value Strategies Initial Class (1)		TA Legg Mason Dynamic Allocation - Growth Service Class (1)
Fidelity® VIP Value Strategies Service Class 2 (1)		TA Levin Large Cap Value Service Class (4)
Franklin Founding Funds Allocation Class 4 Shares (1)		TA Madison Diversified Income Service Class (3)
Franklin Income Class 2 Shares (1)		TA Managed Risk - Balanced ETF Service Class (1)
Franklin Mutual Shares Class 2 Shares (1)		TA Managed Risk - Conservative ETF Service Class (1)
Franklin Templeton Foreign Class 2 Shares (1)		TA Managed Risk - Growth ETF Service Class (1)
Invesco V.I. American Franchise Series II Shares (1)		TA Market Participation Strategy Service Class (1)
Janus Henderson - Enterprise Service Shares (1)		TA Morgan Stanley Capital Growth Initial Class (1)
Janus Henderson - Global Research Service Shares (1)		TA Morgan Stanley Capital Growth Service Class (1)
Janus Henderson - Mid Cap Value Service Shares (1)		TA Multi-Managed Balanced Initial Class (1)
JPMorgan Insurance Trust Core Bond Class 1 Shares (1)		TA Multi-Managed Balanced Service Class (1)
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares (1)		TA Multi-Manager Alternative Strategies Service Class (1)
JPMorgan Insurance Trust Small Cap Core Class 1 Shares (1)		TA PIMCO Tactical - Balanced Service Class (1)
JPMorgan Insurance Trust U.S. Equity Class 1 Shares (1)		TA PIMCO Tactical - Conservative Service Class (1)
MFS® New Discovery Service Class (1)		TA PIMCO Tactical - Growth Service Class (1)
MFS® Total Return Service Class (1)		TA PIMCO Total Return Initial Class (1)
State Street Total Return V.I.S. Class 3 Shares (1)		TA PIMCO Total Return Service Class (1)
TA 60/40 Allocation Service Class (4)		TA PineBridge Inflation Opportunities Service Class (1)
TA Aegon High Yield Bond Initial Class (1)		TA ProFunds UltraBear Service Class (OAM) (1)
TA Aegon High Yield Bond Service Class (1)		TA QS Investors Active Asset Allocation - Conservative Service Class (1)
TA Aegon U.S. Government Securities Initial Class (1)		TA QS Investors Active Asset Allocation - Moderate Service Class (1)
TA Aegon U.S. Government Securities Service Class (1)		TA QS Investors Active Asset Allocation - Moderate Growth Service Class (1)
TA American Funds Managed Risk - Balanced Service Class (1)		TA Small/Mid Cap Value Initial Class (1)
TA Barrow Hanley Dividend Focused Initial Class (1)		TA Small/Mid Cap Value Service Class (1)
TA Barrow Hanley Dividend Focused Service Class (1)		TA T. Rowe Price Small Cap Initial Class (1)
TA BlackRock Equity Smart Beta 100 Service Class (1)		TA T. Rowe Price Small Cap Service Class (1)
TA BlackRock Global Allocation Service Class (1)		TA Torray Concentrated Growth Initial Class (1)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class (1)		TA Torray Concentrated Growth Service Class (1)
TA BlackRock Global Allocation Managed Risk - Growth Service Class (1)		TA TS&W International Equity Initial Class (1)
TA BlackRock Global Real Estate Securities Initial Class (1)		TA TS&W International Equity Service Class (1)
TA BlackRock Global Real Estate Securities Service Class (1)		TA U.S. Equity Index Service Class (2)
TA BlackRock Government Money Market Initial Class (1)		TA WMC US Growth Initial Class (1)
TA BlackRock Government Money Market Service Class (1)		TA WMC US Growth Service Class (1)
TA BlackRock Smart Beta 40 Initial Class (1)		Vanguard® Equity Index (1)
TA BlackRock Smart Beta 40 Service Class (1)		Vanguard® International (1)
TA BlackRock Smart Beta 50 Service Class (1)		Vanguard® Mid-Cap Index (1)
TA BlackRock Smart Beta 75 Service Class (1)		Vanguard® Real Estate Index (1)
TA BlackRock Tactical Allocation Service Class (1)		Vanguard® Short-Term Investment Grade (1)
TA Greystone International Growth Initial Class (1)		Vanguard® Total Bond Market Index (1)
TA Greystone International Growth Service Class (1)		Voya Global Perspectives Class S Shares (1)
TA International Equity Index Service Class (2)		Voya Large Cap Value Class S Shares (1)
TA Janus Balanced Service Class (1)		Voya Strategic Allocation Conservative Class S Shares (1)
TA Janus Mid-Cap Growth Initial Class (1)		Voya Strategic Allocation Moderate Class S Shares (1)
TA Janus Mid-Cap Growth Service Class (1)		Wanger International (1)
TA Jennison Growth Initial Class (1)		Wanger USA (1)

(1)	Statements of operations and changes in net assets for the years ended December 31, 2018 and 2017

(2)	Statements of operations and changes in net assets for the year ended December 31, 2018 and the period May 1, 2017 (commencement of operations) through December 31, 2017

(3)	Statements of operations and changes in net assets for the year ended December 31, 2018 and for the period June 1, 2017 (commencement of operations) through December 31, 2017

(4)	Statements of operations and changes in net assets for the period May 1, 2018 (commencement of operations) through December 31, 2018

Basis for Opinions

These financial statements are the responsibility of the Transamerica Financial Life Insurance Company’s management. Our responsibility is to express an opinion on the financial statements of each of the subaccounts in the Separate Account VA BNY based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the subaccounts in the Separate Account VA BNY in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

April 23, 2019

We have served as the auditor of one or more of the subaccounts in Separate Account VA BNY since 2014.

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Assets and Liabilities

December 31, 2018


Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to) /from General Account			Net Assets		Units Outstanding		Range of Unit Values
AB Balanced Wealth Strategy Class B Shares		495,442.173	$	5,537,608	$	4,944,513	$	2		$	4,944,515		1,591,557	$	1.760260	$	12.896548
AB Growth and Income Class B Shares		824,761.605		24,653,208		22,548,982		57			22,549,039		5,713,960		1.687432		15.984684
AB Large Cap Growth Class B Shares		7,748.770		304,424		378,992		(4	)		378,988		139,295		1.912958		12.943866
American Funds - Asset Allocation Class 2 Shares		2,575,115.270		56,367,637		54,283,430		(46	)		54,283,384		11,287,218		1.751249		14.104327
American Funds - Bond Class 2 Shares		1,499,863.987		16,229,656		15,508,594		(56	)		15,508,538		4,465,231		1.058937		10.416853
American Funds - Growth Class 2 Shares		625,568.179		45,359,321		43,464,477		—			43,464,477		4,840,041		2.322874		18.673674
American Funds - Growth-Income Class 2 Shares		658,358.858		31,179,823		29,560,313		35			29,560,348		3,300,529		2.129396		17.441126
American Funds - International Class 2 Shares		1,620,350.765		32,214,322		28,518,173		(4	)		28,518,169		11,793,828		1.172283		12.084199
Fidelity^® VIP Balanced Service Class 2		1,631,572.766		27,679,223		26,708,846		57			26,708,903		8,189,669		1.538388		14.329332
Fidelity^® VIP Contrafund^® Initial Class		—		—		—		—			—		—		15.850096		16.167637
Fidelity^® VIP Contrafund^® Service Class 2		1,186,371.867		39,392,977		37,145,303		28			37,145,331		5,600,447		1.712032		15.861317
Fidelity^® VIP Equity-Income Service Class 2		25,322.294		519,556		502,648		(8	)		502,640		271,212		1.498744		9.940484
Fidelity^® VIP Growth Service Class 2		14,658.299		689,011		907,495		18			907,513		362,404		1.884158		12.923702
Fidelity^® VIP Growth Opportunities Service Class 2		65.118		1,406		2,439		4			2,443		1,194		1.989726		2.683174
Fidelity^® VIP Mid Cap Initial Class		—		—		—		—			—		—		14.351336		14.638890
Fidelity^® VIP Mid Cap Service Class 2		697,937.023		23,344,606		20,393,720		8			20,393,728		2,778,518		1.669164		14.360697
Fidelity^® VIP Value Strategies Initial Class		1,997.770		27,216		22,195		—			22,195		1,730		12.574775		12.826749
Fidelity^® VIP Value Strategies Service Class 2		768,072.859		10,801,998		8,610,097		(14	)		8,610,083		1,554,410		1.537369		12.584945
Franklin Founding Funds Allocation Class 4 Shares		356,390.061		2,612,270		2,302,280		(8	)		2,302,272		1,241,190		1.775229		9.771990
Franklin Income Class 2 Shares		174,873.741		2,623,340		2,577,639		2			2,577,641		1,855,382		1.284770		10.227613
Franklin Mutual Shares Class 2 Shares		29,365.888		525,791		510,966		11			510,977		400,640		1.156333		9.531432
Franklin Templeton Foreign Class 2 Shares		92,623.050		1,279,716		1,180,018		1			1,180,019		1,262,245		0.871001		9.621912
Invesco V.I. American Franchise Series II Shares		3,314.844		138,583		181,985		7			181,992		104,763		1.627968		11.731074
Janus Henderson - Enterprise Service Shares		4,698.293		235,742		295,945		9			295,954		81,729		1.456605		12.120450
Janus Henderson - Global Research Service Shares		6,456.170		193,374		297,952		(5	)		297,947		197,738		0.985941		11.369868
Janus Henderson - Mid Cap Value Service Shares		153.547		2,318		2,091		(2	)		2,089		934		2.176384		2.303815
JPMorgan Insurance Trust Core Bond Class 1 Shares		40,653.633		461,954		433,368		(7	)		433,361		342,219		1.205412		9.911141
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares		15,565.600		94,751		158,146		(1	)		158,145		52,138		2.847620		9.411529
JPMorgan Insurance Trust Small Cap Core Class 1 Shares		361.744		5,122		7,633		4			7,637		2,503		2.891900		9.529591
JPMorgan Insurance Trust U.S. Equity Class 1 Shares		2,942.235		53,933		78,352		4			78,356		24,936		2.956681		10.763058
MFS^® New Discovery Service Class		93,045.958		1,503,839		1,480,361		(8	)		1,480,353		535,587		2.355579		11.964018
MFS^® Total Return Service Class		43,807.699		900,601		936,609		(12	)		936,597		540,759		1.432064		10.246623
State Street Total Return V.I.S. Class 3 Shares		347,766.332		6,214,561		4,872,206		7			4,872,213		1,413,838		1.337391		12.378541
TA 60/40 Allocation Service Class		62,819.727		616,216		586,108		(1	)		586,107		61,235		9.519685		9.635446
TA Aegon High Yield Bond Initial Class		18,206.078		146,155		132,358		2			132,360		50,377		1.392193		11.884116
TA Aegon High Yield Bond Service Class		865,033.634		6,873,978		6,383,948		4			6,383,952		1,879,618		1.598686		11.577174
TA Aegon U.S. Government Securities Initial Class		24,984.517		298,663		261,088		(3	)		261,085		132,172		1.150669		1.975339
TA Aegon U.S. Government Securities Service Class		5,461,080.030		60,052,950		58,925,054		(58	)		58,924,996		13,408,309		1.038355		10.095593
TA American Funds Managed Risk - Balanced Service Class		5,436,209.529		57,594,892		56,971,476		(64	)		56,971,412		5,415,173		10.207827		10.922991
TA Barrow Hanley Dividend Focused Initial Class		135,815.768		2,177,690		3,017,826		21			3,017,847		1,230,584		1.355296		14.661576
TA Barrow Hanley Dividend Focused Service Class		902,456.707		19,798,228		20,061,613		5			20,061,618		5,558,372		1.427533		14.278097
TA BlackRock Equity Smart Beta 100 Service Class		1,681,019.434		19,340,077		20,189,043		(1	)		20,189,042		1,675,426		11.044727		12.260897

See accompanying notes

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Assets and Liabilities

December 31, 2018


Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to) /from General Account			Net Assets		Units Outstanding		Range of Unit Values
TA BlackRock Global Allocation Service Class		4,509,849.850	$	61,296,024	$	60,747,677	$	126		$	60,747,803		21,778,327	$	1.179789	$	11.659560
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		1,318,322.103		12,488,265		11,878,082		21			11,878,103		1,255,834		9.193437		10.120537
TA BlackRock Global Allocation Managed Risk - Growth Service Class		1,030,124.932		9,594,188		9,178,413		(9	)		9,178,404		977,690		9.133758		10.300793
TA BlackRock Global Real Estate Securities Initial Class		1,766.680		24,400		19,080		(4	)		19,076		7,607		1.308032		10.288234
TA BlackRock Global Real Estate Securities Service Class		422,031.416		5,519,265		4,790,057		(4	)		4,790,053		1,321,327		1.101825		10.022700
TA BlackRock Government Money Market Initial Class		232,247.560		232,248		232,248		3			232,251		176,536		0.799257		1.315600
TA BlackRock Government Money Market Service Class		20,467,094.188		20,467,093		20,467,094		(89	)		20,467,005		7,842,179		0.787553		9.935122
TA BlackRock Smart Beta 40 Initial Class		6,220.851		53,114		59,782		1			59,783		35,527		1.367149		1.759919
TA BlackRock Smart Beta 40 Service Class		2,074,803.858		19,350,241		19,793,629		(11	)		19,793,618		6,257,613		1.049983		11.241851
TA BlackRock Smart Beta 50 Service Class		1,212,579.370		13,289,293		13,386,876		—			13,386,876		1,227,760		10.462262		11.199527
TA BlackRock Smart Beta 75 Service Class		1,245,041.515		14,223,830		14,317,977		4			14,317,981		1,258,007		10.750547		11.631476
TA BlackRock Tactical Allocation Service Class		6,518,563.816		100,157,301		94,975,475		188			94,975,663		27,351,633		1.167769		12.282920
TA Greystone International Growth Initial Class		10,863.306		91,745		87,015		(3	)		87,012		63,800		1.275974		10.880507
TA Greystone International Growth Service Class		872,855.196		7,894,480		6,860,642		(24	)		6,860,618		1,767,291		1.093853		10.602231
TA International Equity Index Service Class		138,092.964		1,511,942		1,313,264		—			1,313,264		140,608		9.152662		9.507218
TA Janus Balanced Service Class		5,855,881.362		80,408,933		85,847,221		(109	)		85,847,112		16,302,543		1.336990		14.230449
TA Janus Mid-Cap Growth Initial Class		2,108.889		72,509		64,490		(1	)		64,489		8,193		1.590107		14.394008
TA Janus Mid-Cap Growth Service Class		449,798.459		14,559,740		13,165,601		18			13,165,619		3,554,951		1.788539		14.023390
TA Jennison Growth Initial Class		178,749.321		1,711,355		1,707,056		(6	)		1,707,050		723,816		2.152855		20.199487
TA Jennison Growth Service Class		2,487,030.625		24,066,750		22,433,016		18			22,433,034		4,346,169		2.318366		19.662782
TA JPMorgan Asset Allocation - Conservative Initial Class		—		—		—		—			—		—		1.481589		1.883054
TA JPMorgan Asset Allocation - Conservative Service Class		6,273,455.664		65,730,716		61,919,007		(137	)		61,918,870		20,318,517		1.158836		11.619572
TA JPMorgan Asset Allocation - Growth Initial Class		2,956.844		30,706		33,117		1			33,118		16,941		1.729782		2.310455
TA JPMorgan Asset Allocation - Growth Service Class		614,318.827		7,145,966		6,812,796		3			6,812,799		1,762,178		1.300173		13.435297
TA JPMorgan Asset Allocation - Moderate Initial Class		57,542.196		632,681		644,473		(2	)		644,471		340,781		1.626352		2.095006
TA JPMorgan Asset Allocation - Moderate Service Class		25,485,166.864		293,103,318		281,356,242		(138	)		281,356,104		82,307,295		1.311983		12.230554
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		35,322.878		403,107		410,452		(2	)		410,450		206,539		1.709156		2.235342
TA JPMorgan Asset Allocation - Moderate Growth Service Class		15,224,675.528		181,042,613		174,322,535		198			174,322,733		47,913,709		1.222563		12.860131
TA JPMorgan Core Bond Service Class		2,252,310.655		31,134,428		30,158,440		(46	)		30,158,394		10,258,351		1.036567		10.564413
TA JPMorgan Enhanced Index Initial Class		33,077.473		549,873		638,395		2			638,397		194,650		1.939695		16.757698
TA JPMorgan Enhanced Index Service Class		275,157.599		5,408,195		5,294,032		(4	)		5,294,028		632,391		1.877007		16.332702
TA JPMorgan International Moderate Growth Service Class		4,466,192.795		43,787,823		41,937,550		28			41,937,578		16,339,209		0.988577		10.998467
TA JPMorgan Mid Cap Value Service Class		1,016,935.521		17,764,927		14,420,146		(14	)		14,420,132		1,822,059		1.824570		14.611786
TA JPMorgan Tactical Allocation Service Class		5,320,323.521		78,449,951		78,049,146		(4	)		78,049,142		17,897,044		1.136165		11.560331
TA Legg Mason Dynamic Allocation - Balanced Service Class		6,922,768.914		81,604,055		80,719,486		57			80,719,543		16,297,233		1.029068		11.478069
TA Legg Mason Dynamic Allocation - Growth Service Class		4,281,059.244		52,657,902		52,742,650		(129	)		52,742,521		11,137,528		1.133286		11.887788
TA Levin Large Cap Value Service Class		10,534.065		109,135		95,017		—			95,017		10,583		8.925723		9.034294
TA Madison Diversified Income Service Class		155,803.026		1,997,932		1,953,770		—			1,953,770		174,620		1.261049		12.078177
TA Managed Risk - Balanced ETF Service Class		36,325,319.520		418,408,550		422,463,466		10			422,463,476		101,640,810		1.048131		11.961469
TA Managed Risk - Conservative ETF Service Class		6,508,881.187		77,876,812		77,976,397		41			77,976,438		26,627,431		1.092831		11.784266
TA Managed Risk - Growth ETF Service Class		32,390,386.064		327,482,351		329,410,226		(71	)		329,410,155		93,132,624		1.183931		12.523347
TA Market Participation Strategy Service Class		2,578,452.377		30,322,744		30,245,246		12			30,245,258		6,796,055		1.180802		12.631035

See accompanying notes.

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Assets and Liabilities

December 31, 2018


Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to) /from General Account			Net Assets		Units Outstanding		Range of Unit Values
TA Morgan Stanley Capital Growth Initial Class		5,808.490	$	96,590	$	94,098	$	(5	)	$	94,093		27,889	$	2.866701	$	4.058557
TA Morgan Stanley Capital Growth Service Class		473,616.588		7,896,163		7,435,780		(1	)		7,435,779		618,397		2.606372		23.236711
TA Multi-Managed Balanced Initial Class		2,145.215		28,653		29,711		(9	)		29,702		12,065		2.177822		2.553517
TA Multi-Managed Balanced Service Class		9,217,533.631		125,676,464		124,897,581		(15	)		124,897,566		16,784,488		1.587378		13.967042
TA Multi-Manager Alternative Strategies Service Class		31,484.186		313,715		298,470		(1	)		298,469		31,168		9.260336		9.958207
TA PIMCO Tactical - Balanced Service Class		3,071,634.348		35,755,425		32,006,430		(18	)		32,006,412		9,336,422		1.014634		11.924940
TA PIMCO Tactical - Conservative Service Class		1,961,474.043		22,423,433		20,340,486		(1	)		20,340,485		5,429,191		0.999672		11.772561
TA PIMCO Tactical - Growth Service Class		3,268,101.193		37,216,238		33,203,908		(6	)		33,203,902		6,847,294		1.011147		12.195813
TA PIMCO Total Return Initial Class		29,585.140		340,400		328,987		3			328,990		201,903		1.351052		1.670210
TA PIMCO Total Return Service Class		6,427,578.908		73,410,933		70,767,644		81			70,767,725		26,993,438		1.056741		10.455457
TA PineBridge Inflation Opportunities Service Class		1,524,272.818		15,702,226		15,136,029		3			15,136,032		7,443,170		0.945063		9.983244
TA ProFunds UltraBear Service Class (OAM)		3,059,444.052		1,551,900		1,499,128		(178	)		1,498,950		35,358,102		0.040633		7.239557
TA QS Investors Active Asset Allocation - Conservative Service Class		2,041,419.095		21,697,855		21,945,255		(12	)		21,945,243		7,176,393		1.036517		11.337919
TA QS Investors Active Asset Allocation - Moderate Service Class		7,317,170.682		82,801,161		83,488,917		21			83,488,938		22,998,302		1.083393		11.564795
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		4,338,706.132		48,771,509		48,723,670		41			48,723,711		12,229,813		1.081554		11.858383
TA Small/Mid Cap Value Initial Class		162,211.243		3,118,098		2,775,434		6			2,775,440		287,183		1.789612		15.228130
TA Small/Mid Cap Value Service Class		667,165.604		13,397,613		11,101,636		38			11,101,674		3,210,853		1.943196		14.838649
TA T. Rowe Price Small Cap Initial Class		21,883.479		300,765		301,773		(2	)		301,771		67,882		2.010977		17.503036
TA T. Rowe Price Small Cap Service Class		2,320,563.582		31,431,393		30,144,121		(47	)		30,144,074		4,826,212		2.528474		17.057948
TA Torray Concentrated Growth Initial Class		75,290.710		1,363,319		1,505,061		3			1,505,064		222,852		1.935072		16.333261
TA Torray Concentrated Growth Service Class		128,042.198		2,427,833		2,621,024		18			2,621,042		690,701		1.902336		15.898769
TA TS&W International Equity Initial Class		50,882.412		607,321		605,501		8			605,509		282,345		1.319786		11.178390
TA TS&W International Equity Service Class		241,560.690		3,092,641		2,850,416		(1	)		2,850,415		689,255		0.942847		10.890790
TA U.S. Equity Index Service Class		531,139.697		6,206,900		5,693,818		—			5,693,818		542,868		10.293712		10.692325
TA WMC US Growth Initial Class		99,255.202		2,507,140		2,665,995		30			2,666,025		1,524,500		1.690797		18.632019
TA WMC US Growth Service Class		770,688.482		19,528,169		20,207,452		30			20,207,482		4,196,509		1.712858		18.149148
Vanguard^® Equity Index		24,128.493		821,713		917,607		(1	)		917,606		54,305		16.706810		17.041499
Vanguard^® International		23,867.043		501,624		552,283		—			552,283		41,630		13.113096		13.375837
Vanguard^® Mid-Cap Index		—		—		—		—			—		—		15.089600		15.391944
Vanguard^® Real Estate Index		—		—		—		—			—		—		12.079592		12.321583
Vanguard^® Short-Term Investment Grade		—		—		—		—			—		—		10.321357		10.528192
Vanguard^® Total Bond Market Index		30,865.106		378,612		356,183		—			356,183		34,255		10.280820		10.486855
Voya Global Perspectives Class S Shares		—		—		—		—			—		—		9.704836		10.215774
Voya Large Cap Value Class S Shares		—		—		—		—			—		—		9.997865		10.562198
Voya Strategic Allocation Conservative Class S Shares		—		—		—		—			—		—		9.967053		10.282988
Voya Strategic Allocation Moderate Class S Shares		—		—		—		—			—		—		10.091410		10.411335
Wanger International		—		—		—		—			—		—		10.941932		11.161192
Wanger USA		—		—		—		—			—		—		16.425881		16.754977

See accompanying notes.

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	AB Balanced Wealth Strategy Class B Shares Subaccount			AB Growth and Income Class B Shares Subaccount			AB Large Cap Growth Class B Shares Subaccount			American Funds - Asset Allocation Class 2 Shares Subaccount			American Funds - Bond Class 2 Shares Subaccount
Net Assets as of December 31, 2016:	$	4,215,929		$	17,846,053		$	447,199		$	45,745,822		$	15,744,768

Investment Income:
Reinvested Dividends		77,350			317,653			—			797,327			314,772
Investment Expense:
Mortality and Expense Risk and Administrative Charges		71,166			329,234			6,488			886,048			270,600

Net Investment Income (Loss)		6,184			(11,581	)		(6,488	)		(88,721	)		44,172
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		35,204			2,200,489			27,942			2,395,643			238,825
Realized Gain (Loss) on Investments		(78,884	)		1,013,514			65,393			1,063,687			(53,792	)

Net Realized Capital Gains (Losses) on Investments		(43,680	)		3,214,003			93,335			3,459,330			185,033
Net Change in Unrealized Appreciation (Depreciation)		593,114			436,009			38,629			3,426,613			78,466

Net Gain (Loss) on Investment		549,434			3,650,012			131,964			6,885,943			263,499
Net Increase (Decrease) in Net Assets Resulting from Operations		555,618			3,638,431			125,476			6,797,222			307,671

Increase (Decrease) in Net Assets from Contract Transactions		(58,868	)		3,843,365			(127,220	)		1,679,686			434,088

Total Increase (Decrease) in Net Assets		496,750			7,481,796			(1,744	)		8,476,908			741,759

Net Assets as of December 31, 2017:	$	4,712,679		$	25,327,849		$	445,455		$	54,222,730		$	16,486,527

Investment Income:
Reinvested Dividends		84,866			190,319			—			979,042			381,919
Investment Expense:
Mortality and Expense Risk and Administrative Charges		80,867			372,147			6,083			917,312			268,293

Net Investment Income (Loss)		3,999			(181,828	)		(6,083	)		61,730			113,626
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		379,799			2,893,036			51,116			2,280,167			22,541
Realized Gain (Loss) on Investments		(54,752	)		783,886			65,071			1,724,304			(159,664	)

Net Realized Capital Gains (Losses) on Investments		325,047			3,676,922			116,187			4,004,471			(137,123	)
Net Change in Unrealized Appreciation (Depreciation)		(753,760	)		(5,248,328	)		(98,999	)		(7,878,698	)		(373,910	)

Net Gain (Loss) on Investment		(428,713	)		(1,571,406	)		17,188			(3,874,227	)		(511,033	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(424,714	)		(1,753,234	)		11,105			(3,812,497	)		(397,407	)

Increase (Decrease) in Net Assets from Contract Transactions		656,550			(1,025,576	)		(77,572	)		3,873,151			(580,582	)

Total Increase (Decrease) in Net Assets		231,836			(2,778,810	)		(66,467	)		60,654			(977,989	)

Net Assets as of December 31, 2018:	$	4,944,515		$	22,549,039		$	378,988		$	54,283,384		$	15,508,538

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	American Funds - Growth Class 2 Shares Subaccount			American Funds - Growth- Income Class 2 Shares Subaccount			American Funds - International Class 2 Shares Subaccount			Fidelity^® VIP Balanced Service Class 2 Subaccount			Fidelity^® VIP Contrafund^® Initial Class Subaccount
Net Assets as of December 31, 2016:	$	30,774,870		$	24,020,712		$	11,475,849		$	21,131,382		$	—

Investment Income:
Reinvested Dividends		203,557			412,661			200,993			299,000			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		703,586			517,786			273,666			331,368			—

Net Investment Income (Loss)		(500,029	)		(105,125	)		(72,673	)		(32,368	)		—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		3,776,190			1,847,262			178,985			597,072			—
Realized Gain (Loss) on Investments		(16,298	)		(128,952	)		(41,276	)		327,841			—

Net Realized Capital Gains (Losses) on Investments		3,759,892			1,718,310			137,709			924,913			—
Net Change in Unrealized Appreciation (Depreciation)		5,502,253			3,573,385			3,745,343			2,222,661			—

Net Gain (Loss) on Investment		9,262,145			5,291,695			3,883,052			3,147,574			—
Net Increase (Decrease) in Net Assets Resulting from Operations		8,762,116			5,186,570			3,810,379			3,115,206			—

Increase (Decrease) in Net Assets from Contract Transactions		4,249,734			2,499,950			2,133,188			245,571			—

Total Increase (Decrease) in Net Assets		13,011,850			7,686,520			5,943,567			3,360,777			—

Net Assets as of December 31, 2017:	$	43,786,720		$	31,707,232		$	17,419,416		$	24,492,159		$	—

Investment Income:
Reinvested Dividends		214,820			455,028			520,971			361,168			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		844,766			531,638			417,448			372,196			—

Net Investment Income (Loss)		(629,946	)		(76,610	)		103,523			(11,028	)		—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		4,661,468			1,994,012			847,593			1,287,747			—
Realized Gain (Loss) on Investments		1,498,128			882,708			121,259			573,253			—

Net Realized Capital Gains (Losses) on Investments		6,159,596			2,876,720			968,852			1,861,000			—
Net Change in Unrealized Appreciation (Depreciation)		(6,779,314	)		(4,022,359	)		(5,968,544	)		(3,641,031	)		—

Net Gain (Loss) on Investment		(619,718	)		(1,145,639	)		(4,999,692	)		(1,780,031	)		—
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,249,664	)		(1,222,249	)		(4,896,169	)		(1,791,059	)		—

Increase (Decrease) in Net Assets from Contract Transactions		927,421			(924,635	)		15,994,922			4,007,803			—

Total Increase (Decrease) in Net Assets		(322,243	)		(2,146,884	)		11,098,753			2,216,744			—

Net Assets as of December 31, 2018:	$	43,464,477		$	29,560,348		$	28,518,169		$	26,708,903		$	—

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Fidelity^® VIP Contrafund^® Service Class 2 Subaccount			Fidelity^® VIP Equity - Income Service Class 2 Subaccount			Fidelity^® VIP Growth Service Class 2 Subaccount			Fidelity^® VIP Growth Opportunities Service Class 2 Subaccount			Fidelity^® VIP Mid Cap Initial Class Subaccount
Net Assets as of December 31, 2016:	$	34,500,882		$	849,441		$	785,155		$	1,792		$	—

Investment Income:
Reinvested Dividends		323,913			11,452			747			2			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		599,538			11,510			13,117			28			—

Net Investment Income (Loss)		(275,625	)		(58	)		(12,370	)		(26	)		—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,141,962			17,492			65,130			259			—
Realized Gain (Loss) on Investments		474,170			24,506			21,289			40			—

Net Realized Capital Gains (Losses) on Investments		2,616,132			41,998			86,419			299			—
Net Change in Unrealized Appreciation (Depreciation)		4,877,510			41,493			180,747			287			—

Net Gain (Loss) on Investment		7,493,642			83,491			267,166			586			—
Net Increase (Decrease) in Net Assets Resulting from Operations		7,218,017			83,433			254,796			560			—

Increase (Decrease) in Net Assets from Contract Transactions		3,239,224			(171,094	)		(36,872	)		(63	)		—

Total Increase (Decrease) in Net Assets		10,457,241			(87,661	)		217,924			497			—

Net Assets as of December 31, 2017:	$	44,958,123		$	761,780		$	1,003,079		$	2,289		$	—

Investment Income:
Reinvested Dividends		194,833			11,958			425			2			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		656,860			9,534			14,959			35			—

Net Investment Income (Loss)		(462,027	)		2,424			(14,534	)		(33	)		—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		3,963,223			34,596			147,043			135			—
Realized Gain (Loss) on Investments		248,190			31,075			62,060			61			—

Net Realized Capital Gains (Losses) on Investments		4,211,413			65,671			209,103			196			—
Net Change in Unrealized Appreciation (Depreciation)		(7,187,985	)		(122,221	)		(203,388	)		73			—

Net Gain (Loss) on Investment		(2,976,572	)		(56,550	)		5,715			269			—
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,438,599	)		(54,126	)		(8,819	)		236			—

Increase (Decrease) in Net Assets from Contract Transactions		(4,374,193	)		(205,014	)		(86,747	)		(82	)		—

Total Increase (Decrease) in Net Assets		(7,812,792	)		(259,140	)		(95,566	)		154			—

Net Assets as of December 31, 2018:	$	37,145,331		$	502,640		$	907,513		$	2,443		$	—

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Fidelity^® VIP Mid Cap Service Class 2 Subaccount			Fidelity^® VIP Value Strategies Initial Class Subaccount			Fidelity^® VIP Value Strategies Service Class 2 Subaccount			Franklin Founding Funds Allocation Class 4 Shares Subaccount			Franklin Income Class 2 Shares Subaccount
Net Assets as of December 31, 2016:	$	27,980,216		$	22,793		$	10,823,952		$	3,694,259		$	3,477,568

Investment Income:
Reinvested Dividends		161,732			376			148,284			91,039			145,905
Investment Expense:
Mortality and Expense Risk and Administrative Charges		488,302			161			184,178			57,928			50,188

Net Investment Income (Loss)		(326,570	)		215			(35,894	)		33,111			95,717
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,416,297			5,824			2,749,644			146,001			—
Realized Gain (Loss) on Investments		(70,738	)		5			(50,199	)		(2,626	)		33,707

Net Realized Capital Gains (Losses) on Investments		1,345,559			5,829			2,699,445			143,375			33,707
Net Change in Unrealized Appreciation (Depreciation)		4,557,615			(1,807	)		(775,254	)		169,229			138,534

Net Gain (Loss) on Investment		5,903,174			4,022			1,924,191			312,604			172,241
Net Increase (Decrease) in Net Assets Resulting from Operations		5,576,604			4,237			1,888,297			345,715			267,958

Increase (Decrease) in Net Assets from Contract Transactions		2,823,094			(5	)		124,336			(655,029	)		(427,348	)

Total Increase (Decrease) in Net Assets		8,399,698			4,232			2,012,633			(309,314	)		(159,390	)

Net Assets as of December 31, 2017:	$	36,379,914		$	27,025		$	12,836,585		$	3,384,945		$	3,318,178

Investment Income:
Reinvested Dividends		117,070			256			79,421			90,070			148,761
Investment Expense:
Mortality and Expense Risk and Administrative Charges		474,371			171			169,353			48,850			44,514

Net Investment Income (Loss)		(357,301	)		85			(89,932	)		41,220			104,247
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		3,138,834			1,183			517,444			73,713			—
Realized Gain (Loss) on Investments		810,380			(4	)		(551,402	)		(33,039	)		46,068

Net Realized Capital Gains (Losses) on Investments		3,949,214			1,179			(33,958	)		40,674			46,068
Net Change in Unrealized Appreciation (Depreciation)		(7,390,890	)		(6,090	)		(1,971,653	)		(378,166	)		(307,450	)

Net Gain (Loss) on Investment		(3,441,676	)		(4,911	)		(2,005,611	)		(337,492	)		(261,382	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,798,977	)		(4,826	)		(2,095,543	)		(296,272	)		(157,135	)

Increase (Decrease) in Net Assets from Contract Transactions		(12,187,209	)		(4	)		(2,130,959	)		(786,401	)		(583,402	)

Total Increase (Decrease) in Net Assets		(15,986,186	)		(4,830	)		(4,226,502	)		(1,082,673	)		(740,537	)

Net Assets as of December 31, 2018:	$	20,393,728		$	22,195		$	8,610,083		$	2,302,272		$	2,577,641

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Franklin Mutual Shares Class 2 Shares Subaccount			Franklin Templeton Foreign Class 2 Shares Subaccount			Invesco V.I. American Franchise Series II Shares Subaccount			Janus Henderson - Enterprise Service Shares Subaccount			Janus Henderson - Global Research Service Shares Subaccount
Net Assets as of December 31, 2016:	$	775,627		$	1,683,083		$	183,985		$	290,893		$	395,561

Investment Income:
Reinvested Dividends		16,688			45,383			—			1,734			2,908
Investment Expense:
Mortality and Expense Risk and Administrative Charges		11,378			25,252			2,943			4,492			6,482

Net Investment Income (Loss)		5,310			20,131			(2,943	)		(2,758	)		(3,574	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		30,264			—			15,351			20,163			—
Realized Gain (Loss) on Investments		28,162			19,719			12,154			4,628			43,068

Net Realized Capital Gains (Losses) on Investments		58,426			19,719			27,505			24,791			43,068
Net Change in Unrealized Appreciation (Depreciation)		(15,387	)		203,269			19,701			50,764			54,025

Net Gain (Loss) on Investment		43,039			222,988			47,206			75,555			97,093
Net Increase (Decrease) in Net Assets Resulting from Operations		48,349			243,119			44,263			72,797			93,519

Increase (Decrease) in Net Assets from Contract Transactions		(118,058	)		(195,340	)		(27,517	)		(7,136	)		(99,306	)

Total Increase (Decrease) in Net Assets		(69,709	)		47,779			16,746			65,661			(5,787	)

Net Assets as of December 31, 2017:	$	705,918		$	1,730,862		$	200,731		$	356,554		$	389,774

Investment Income:
Reinvested Dividends		14,250			40,794			—			431			3,658
Investment Expense:
Mortality and Expense Risk and Administrative Charges		9,449			22,073			3,133			4,672			5,926

Net Investment Income (Loss)		4,801			18,721			(3,133	)		(4,241	)		(2,268	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		22,189			—			13,559			15,818			—
Realized Gain (Loss) on Investments		34,210			25,332			5,478			49,221			33,930

Net Realized Capital Gains (Losses) on Investments		56,399			25,332			19,037			65,039			33,930
Net Change in Unrealized Appreciation (Depreciation)		(122,741	)		(295,315	)		(25,406	)		(63,250	)		(62,214	)

Net Gain (Loss) on Investment		(66,342	)		(269,983	)		(6,369	)		1,789			(28,284	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(61,541	)		(251,262	)		(9,502	)		(2,452	)		(30,552	)

Increase (Decrease) in Net Assets from Contract Transactions		(133,400	)		(299,581	)		(9,237	)		(58,148	)		(61,275	)

Total Increase (Decrease) in Net Assets		(194,941	)		(550,843	)		(18,739	)		(60,600	)		(91,827	)

Net Assets as of December 31, 2018:	$	510,977		$	1,180,019		$	181,992		$	295,954		$	297,947

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Janus Henderson - Mid Cap Value Service Shares Subaccount			JPMorgan Insurance Trust Core Bond Class 1 Shares Subaccount			JPMorgan Insurance Trust Mid Cap Value Class 1 Shares Subaccount			JPMorgan Insurance Trust Small Cap Core Class 1 Shares Subaccount			JPMorgan Insurance Trust U.S. Equity Class 1 Shares Subaccount
Net Assets as of December 31, 2016:	$	2,356		$	525,026		$	161,765		$	8,007		$	71,808

Investment Income:
Reinvested Dividends		15			13,198			1,351			27			689
Investment Expense:
Mortality and Expense Risk and Administrative Charges		33			7,201			2,177			115			1,021

Net Investment Income (Loss)		(18	)		5,997			(826	)		(88	)		(332	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		90			—			7,532			59			775
Realized Gain (Loss) on Investments		15			(3,605	)		1,314			155			956

Net Realized Capital Gains (Losses) on Investments		105			(3,605	)		8,846			214			1,731
Net Change in Unrealized Appreciation (Depreciation)		189			8,416			11,915			967			13,415

Net Gain (Loss) on Investment		294			4,811			20,761			1,181			15,146
Net Increase (Decrease) in Net Assets Resulting from Operations		276			10,808			19,935			1,093			14,814

Increase (Decrease) in Net Assets from Contract Transactions		(83	)		(55,727	)		(1	)		(150	)		(961	)

Total Increase (Decrease) in Net Assets		193			(44,919	)		19,934			943			13,853

Net Assets as of December 31, 2017:	$	2,549		$	480,107		$	181,699		$	8,950		$	85,661

Investment Income:
Reinvested Dividends		22			10,598			1,735			35			713
Investment Expense:
Mortality and Expense Risk and Administrative Charges		33			6,309			2,313			128			1,143

Net Investment Income (Loss)		(11	)		4,289			(578	)		(93	)		(430	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		214			722			2,900			593			10,124
Realized Gain (Loss) on Investments		21			(3,586	)		1,420			169			1,103

Net Realized Capital Gains (Losses) on Investments		235			(2,864	)		4,320			762			11,227
Net Change in Unrealized Appreciation (Depreciation)		(592	)		(8,294	)		(27,297	)		(1,824	)		(17,022	)

Net Gain (Loss) on Investment		(357	)		(11,158	)		(22,977	)		(1,062	)		(5,795	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(368	)		(6,869	)		(23,555	)		(1,155	)		(6,225	)

Increase (Decrease) in Net Assets from Contract Transactions		(92	)		(39,877	)		1			(158	)		(1,080	)

Total Increase (Decrease) in Net Assets		(460	)		(46,746	)		(23,554	)		(1,313	)		(7,305	)

Net Assets as of December 31, 2018:	$	2,089		$	433,361		$	158,145		$	7,637		$	78,356

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	MFS^® New Discovery Service Class Subaccount			MFS^® Total Return Service Class Subaccount			State Street Total Return V.I.S. Class 3 Shares Subaccount			TA 60/40 Allocation Service Class Subaccount⁽¹⁾			TA Aegon High Yield Bond Initial Class Subaccount
Net Assets as of December 31, 2016:	$	1,699,029		$	1,824,238		$	2,313,919		$	—		$	98,517

Investment Income:
Reinvested Dividends		—			38,475			61,757			—			7,647
Investment Expense:
Mortality and Expense Risk and Administrative Charges		26,126			23,752			46,626			—			1,460

Net Investment Income (Loss)		(26,126	)		14,723			15,131			—			6,187
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		37,896			49,388			95,414			—			—
Realized Gain (Loss) on Investments		53,735			174,209			49,261			—			2,514

Net Realized Capital Gains (Losses) on Investments		91,631			223,597			144,675			—			2,514
Net Change in Unrealized Appreciation (Depreciation)		333,083			(66,086	)		194,806			—			(2,102	)

Net Gain (Loss) on Investment		424,714			157,511			339,481			—			412
Net Increase (Decrease) in Net Assets Resulting from Operations		398,588			172,234			354,612			—			6,599

Increase (Decrease) in Net Assets from Contract Transactions		(344,090	)		(718,711	)		968,954			—			25,639

Total Increase (Decrease) in Net Assets		54,498			(546,477	)		1,323,566			—			32,238

Net Assets as of December 31, 2017:	$	1,753,527		$	1,277,761		$	3,637,485		$	—		$	130,755

Investment Income:
Reinvested Dividends		—			21,348			102,926			—			8,672
Investment Expense:
Mortality and Expense Risk and Administrative Charges		26,331			15,868			71,328			1,906			1,675

Net Investment Income (Loss)		(26,331	)		5,480			31,598			(1,906	)		6,997
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		255,969			49,157			1,086,356			—			—
Realized Gain (Loss) on Investments		72,253			62,041			56,878			563			(161	)

Net Realized Capital Gains (Losses) on Investments		328,222			111,198			1,143,234			563			(161	)
Net Change in Unrealized Appreciation (Depreciation)		(318,017	)		(193,908	)		(1,588,743	)		(30,108	)		(11,624	)

Net Gain (Loss) on Investment		10,205			(82,710	)		(445,509	)		(29,545	)		(11,785	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(16,126	)		(77,230	)		(413,911	)		(31,451	)		(4,788	)

Increase (Decrease) in Net Assets from Contract Transactions		(257,048	)		(263,934	)		1,648,639			617,558			6,393

Total Increase (Decrease) in Net Assets		(273,174	)		(341,164	)		1,234,728			586,107			1,605

Net Assets as of December 31, 2018:	$	1,480,353		$	936,597		$	4,872,213		$	586,107		$	132,360

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Aegon High Yield Bond Service Class Subaccount			TA Aegon U.S. Government Securities Initial Class Subaccount			TA Aegon U.S. Government Securities Service Class Subaccount			TA American Funds Managed Risk - Balanced Service Class Subaccount			TA Barrow Hanley Dividend Focused Initial Class Subaccount
Net Assets as of December 31, 2016:	$	6,641,135		$	251,979		$	72,397,578		$	26,789,196		$	3,032,677

Investment Income:
Reinvested Dividends		403,126			10,605			1,256,594			270,264			74,345
Investment Expense:
Mortality and Expense Risk and Administrative Charges		99,752			3,675			665,561			570,973			44,843

Net Investment Income (Loss)		303,374			6,930			591,033			(300,709	)		29,502
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			22,179			3,015,503			38,019			—
Realized Gain (Loss) on Investments		(7,233	)		(840	)		(2,347,575	)		350,741			136,929

Net Realized Capital Gains (Losses) on Investments		(7,233	)		21,339			667,928			388,760			136,929
Net Change in Unrealized Appreciation (Depreciation)		93,128			(25,408	)		(647,785	)		4,796,529			310,896

Net Gain (Loss) on Investment		85,895			(4,069	)		20,143			5,185,289			447,825
Net Increase (Decrease) in Net Assets Resulting from Operations		389,269			2,861			611,176			4,884,580			477,327

Increase (Decrease) in Net Assets from Contract Transactions		231,320			30,014			(44,148,970	)		19,110,830			230,601

Total Increase (Decrease) in Net Assets		620,589			32,875			(43,537,794	)		23,995,410			707,928

Net Assets as of December 31, 2017:	$	7,261,724		$	284,854		$	28,859,784		$	50,784,606		$	3,740,605

Investment Income:
Reinvested Dividends		420,563			7,940			605,379			468,554			75,090
Investment Expense:
Mortality and Expense Risk and Administrative Charges		98,037			3,664			384,569			745,431			48,508

Net Investment Income (Loss)		322,526			4,276			220,810			(276,877	)		26,582
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			1,797,251			—
Realized Gain (Loss) on Investments		(49,599	)		(4,136	)		(1,792,706	)		801,343			89,897

Net Realized Capital Gains (Losses) on Investments		(49,599	)		(4,136	)		(1,792,706	)		2,598,594			89,897
Net Change in Unrealized Appreciation (Depreciation)		(549,863	)		(3,553	)		1,506,881			(6,475,837	)		(557,592	)

Net Gain (Loss) on Investment		(599,462	)		(7,689	)		(285,825	)		(3,877,243	)		(467,695	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(276,936	)		(3,413	)		(65,015	)		(4,154,120	)		(441,113	)

Increase (Decrease) in Net Assets from Contract Transactions		(600,836	)		(20,356	)		30,130,227			10,340,926			(281,645	)

Total Increase (Decrease) in Net Assets		(877,772	)		(23,769	)		30,065,212			6,186,806			(722,758	)

Net Assets as of December 31, 2018:	$	6,383,952		$	261,085		$	58,924,996		$	56,971,412		$	3,017,847

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Barrow Hanley Dividend Focused Service Class Subaccount			TA BlackRock Equity Smart Beta 100 Service Class Subaccount			TA BlackRock Global Allocation Service Class Subaccount			TA BlackRock Global Allocation Managed Risk - Balanced Service Class Subaccount
Net Assets as of December 31, 2016:	$	19,563,340		$	1,126,448		$	62,055,519		$	7,203,419

Investment Income:
Reinvested Dividends		481,021			77,062			756,436			53,695
Investment Expense:
Mortality and Expense Risk and Administrative Charges		320,032			117,626			953,346			107,258

Net Investment Income (Loss)		160,989			(40,564	)		(196,910	)		(53,563	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			14,252			—			—
Realized Gain (Loss) on Investments		615,895			38,872			651,306			(66,817	)

Net Realized Capital Gains (Losses) on Investments		615,895			53,124			651,306			(66,817	)
Net Change in Unrealized Appreciation (Depreciation)		2,166,185			2,549,617			7,180,153			950,474

Net Gain (Loss) on Investment		2,782,080			2,602,741			7,831,459			883,657
Net Increase (Decrease) in Net Assets Resulting from Operations		2,943,069			2,562,177			7,634,549			830,094

Increase (Decrease) in Net Assets from Contract Transactions		993,019			17,358,943			2,820,904			1,392,472

Total Increase (Decrease) in Net Assets		3,936,088			19,921,120			10,455,453			2,222,566

Net Assets as of December 31, 2017:	$	23,499,428		$	21,047,568		$	72,510,972		$	9,425,985

Investment Income:
Reinvested Dividends		449,849			251,318			779,559			133,224
Investment Expense:
Mortality and Expense Risk and Administrative Charges		343,365			196,152			971,232			145,503

Net Investment Income (Loss)		106,484			55,166			(191,673	)		(12,279	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			245,520			752,935			—
Realized Gain (Loss) on Investments		757,150			79,313			1,202,062			25,929

Net Realized Capital Gains (Losses) on Investments		757,150			324,833			1,954,997			25,929
Net Change in Unrealized Appreciation (Depreciation)		(3,919,975	)		(1,717,339	)		(7,944,965	)		(1,096,332	)

Net Gain (Loss) on Investment		(3,162,825	)		(1,392,506	)		(5,989,968	)		(1,070,403	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,056,341	)		(1,337,340	)		(6,181,641	)		(1,082,682	)

Increase (Decrease) in Net Assets from Contract Transactions		(381,469	)		478,814			(5,581,528	)		3,534,800

Total Increase (Decrease) in Net Assets		(3,437,810	)		(858,526	)		(11,763,169	)		2,452,118

Net Assets as of December 31, 2018:	$	20,061,618		$	20,189,042		$	60,747,803		$	11,878,103

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA BlackRock Global Allocation Managed Risk - Growth Service Class Subaccount			TA BlackRock Global Real Estate Securities Initial Class Subaccount			TA BlackRock Global Real Estate Securities Service Class Subaccount			TA BlackRock Government Money Market Initial Class Subaccount			TA BlackRock Government Money Market Service Class Subaccount
Net Assets as of December 31, 2016:	$	7,315,682		$	22,037		$	5,721,454		$	78,249		$	36,408,179

Investment Income:
Reinvested Dividends		58,176			840			193,237			6			1,371
Investment Expense:
Mortality and Expense Risk and Administrative Charges		112,793			316			89,254			1,553			362,487

Net Investment Income (Loss)		(54,617	)		524			103,983			(1,547	)		(361,116	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			—			—
Realized Gain (Loss) on Investments		(107,300	)		(223	)		64,727			—			—

Net Realized Capital Gains (Losses) on Investments		(107,300	)		(223	)		64,727			—			—
Net Change in Unrealized Appreciation (Depreciation)		1,438,050			1,825			363,632			—			—

Net Gain (Loss) on Investment		1,330,750			1,602			428,359			—			—
Net Increase (Decrease) in Net Assets Resulting from Operations		1,276,133			2,126			532,342			(1,547	)		(361,116	)

Increase (Decrease) in Net Assets from Contract Transactions		1,314,569			(1,444	)		(165,318	)		89,073			(13,537,672	)

Total Increase (Decrease) in Net Assets		2,590,702			682			367,024			87,526			(13,898,788	)

Net Assets as of December 31, 2017:	$	9,906,384		$	22,719		$	6,088,478		$	165,775		$	22,509,391

Investment Income:
Reinvested Dividends		128,399			1,893			454,929			4,093			207,917
Investment Expense:
Mortality and Expense Risk and Administrative Charges		133,687			300			85,319			3,108			409,190

Net Investment Income (Loss)		(5,288	)		1,593			369,610			985			(201,273	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		84,205			—			—			—			—
Realized Gain (Loss) on Investments		52,603			(380	)		(48,895	)		—			—

Net Realized Capital Gains (Losses) on Investments		136,808			(380	)		(48,895	)		—			—
Net Change in Unrealized Appreciation (Depreciation)		(1,304,346	)		(3,751	)		(1,004,230	)		—			—

Net Gain (Loss) on Investment		(1,167,538	)		(4,131	)		(1,053,125	)		—			—
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,172,826	)		(2,538	)		(683,515	)		985			(201,273	)

Increase (Decrease) in Net Assets from Contract Transactions		444,846			(1,105	)		(614,910	)		65,491			(1,841,113	)

Total Increase (Decrease) in Net Assets		(727,980	)		(3,643	)		(1,298,425	)		66,476			(2,042,386	)

Net Assets as of December 31, 2018:	$	9,178,404		$	19,076		$	4,790,053		$	232,251		$	20,467,005

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA BlackRock Smart Beta 40 Initial Class Subaccount			TA BlackRock Smart Beta 40 Service Class Subaccount			TA BlackRock Smart Beta 50 Service Class Subaccount			TA BlackRock Smart Beta 75 Service Class Subaccount			TA BlackRock Tactical Allocation Service Class Subaccount
Net Assets as of December 31, 2016:	$	58,884		$	22,289,282		$	3,516,806		$	833,826		$	100,557,415

Investment Income:
Reinvested Dividends		1,094			317,977			51,196			39,489			1,568,848
Investment Expense:
Mortality and Expense Risk and Administrative Charges		854			307,053			77,753			67,555			1,473,751

Net Investment Income (Loss)		240			10,924			(26,557	)		(28,066	)		95,097
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			10,592			11,248			1,773,829
Realized Gain (Loss) on Investments		201			422,161			37,359			19,353			539,031

Net Realized Capital Gains (Losses) on Investments		201			422,161			47,951			30,601			2,312,860
Net Change in Unrealized Appreciation (Depreciation)		4,407			1,230,167			680,689			1,018,530			7,773,803

Net Gain (Loss) on Investment		4,608			1,652,328			728,640			1,049,131			10,086,663
Net Increase (Decrease) in Net Assets Resulting from Operations		4,848			1,663,252			702,083			1,021,065			10,181,760

Increase (Decrease) in Net Assets from Contract Transactions		138			(1,799,194	)		3,918,593			10,833,144			(2,735,240	)

Total Increase (Decrease) in Net Assets		4,986			(135,942	)		4,620,676			11,854,209			7,446,520

Net Assets as of December 31, 2017:	$	63,870		$	22,153,340		$	8,137,482		$	12,688,035		$	108,003,935

Investment Income:
Reinvested Dividends		1,207			355,536			90,372			123,081			1,022,745
Investment Expense:
Mortality and Expense Risk and Administrative Charges		874			301,739			125,760			141,181			1,456,902

Net Investment Income (Loss)		333			53,797			(35,388	)		(18,100	)		(434,157	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			53,502			70,826			4,640,313
Realized Gain (Loss) on Investments		261			366,370			70,582			75,267			539,732

Net Realized Capital Gains (Losses) on Investments		261			366,370			124,084			146,093			5,180,045
Net Change in Unrealized Appreciation (Depreciation)		(4,084	)		(1,655,710	)		(569,302	)		(930,181	)		(10,565,567	)

Net Gain (Loss) on Investment		(3,823	)		(1,289,340	)		(445,218	)		(784,088	)		(5,385,522	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,490	)		(1,235,543	)		(480,606	)		(802,188	)		(5,819,679	)

Increase (Decrease) in Net Assets from Contract Transactions		(597	)		(1,124,179	)		5,730,000			2,432,134			(7,208,593	)

Total Increase (Decrease) in Net Assets		(4,087	)		(2,359,722	)		5,249,394			1,629,946			(13,028,272	)

Net Assets as of December 31, 2018:	$	59,783		$	19,793,618		$	13,386,876		$	14,317,981		$	94,975,663

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Greystone International Growth Initial Class Subaccount			TA Greystone International Growth Service Class Subaccount			TA International Equity Index Service Class Subaccount⁽¹⁾			TA Janus Balanced Service Class Subaccount			TA Janus Mid-Cap Growth Initial Class Subaccount
Net Assets as of December 31, 2016:	$	61,836		$	13,345,400		$	—		$	66,683,993		$	47,880

Investment Income:
Reinvested Dividends		1,482			238,445			—			1,021,952			14
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,223			266,011			3,409			1,081,713			315

Net Investment Income (Loss)		259			(27,566	)		(3,409	)		(59,761	)		(301	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			362,409			85
Realized Gain (Loss) on Investments		2,101			162,248			5,082			1,075,400			(592	)

Net Realized Capital Gains (Losses) on Investments		2,101			162,248			5,082			1,437,809			(507	)
Net Change in Unrealized Appreciation (Depreciation)		15,483			3,579,176			22,912			9,353,823			8,049

Net Gain (Loss) on Investment		17,584			3,741,424			27,994			10,791,632			7,542
Net Increase (Decrease) in Net Assets Resulting from Operations		17,843			3,713,858			24,585			10,731,871			7,241

Increase (Decrease) in Net Assets from Contract Transactions		34,239			6,159,240			360,428			7,310,548			(41,035	)

Total Increase (Decrease) in Net Assets		52,082			9,873,098			385,013			18,042,419			(33,794	)

Net Assets as of December 31, 2017:	$	113,918		$	23,218,498		$	385,013		$	84,726,412		$	14,086

Investment Income:
Reinvested Dividends		1,329			90,149			4,751			1,323,728			43
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,498			252,575			16,573			1,247,526			342

Net Investment Income (Loss)		(169	)		(162,426	)		(11,822	)		76,202			(299	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		565			48,724			2,667			2,180,292			3,182
Realized Gain (Loss) on Investments		1,177			1,765,157			(18,474	)		2,012,640			1,481

Net Realized Capital Gains (Losses) on Investments		1,742			1,813,881			(15,807	)		4,192,932			4,663
Net Change in Unrealized Appreciation (Depreciation)		(22,750	)		(4,165,463	)		(221,589	)		(5,638,588	)		(11,088	)

Net Gain (Loss) on Investment		(21,008	)		(2,351,582	)		(237,396	)		(1,445,656	)		(6,425	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(21,177	)		(2,514,008	)		(249,218	)		(1,369,454	)		(6,724	)

Increase (Decrease) in Net Assets from Contract Transactions		(5,729	)		(13,843,872	)		1,177,469			2,490,154			57,127

Total Increase (Decrease) in Net Assets		(26,906	)		(16,357,880	)		928,251			1,120,700			50,403

Net Assets as of December 31, 2018:	$	87,012		$	6,860,618		$	1,313,264		$	85,847,112		$	64,489

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Janus Mid-Cap Growth Service Class Subaccount			TA Jennison Growth Initial Class Subaccount			TA Jennison Growth Service Class Subaccount			TA JPMorgan Asset Allocation - Conservative Initial Class Subaccount			TA JPMorgan Asset Allocation - Conservative Service Class Subaccount
Net Assets as of December 31, 2016:	$	3,562,151		$	1,422,270		$	16,155,829		$	16,042		$	60,565,402

Investment Income:
Reinvested Dividends		—			102			—			361			1,245,839
Investment Expense:
Mortality and Expense Risk and Administrative Charges		64,488			21,946			323,077			236			869,983

Net Investment Income (Loss)		(64,488	)		(21,844	)		(323,077	)		125			375,856
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		30,919			161,451			2,337,842			271			1,060,002
Realized Gain (Loss) on Investments		(74,578	)		57,795			395,477			2			(37,823	)

Net Realized Capital Gains (Losses) on Investments		(43,659	)		219,246			2,733,319			273			1,022,179
Net Change in Unrealized Appreciation (Depreciation)		1,135,700			273,067			3,858,022			1,408			5,393,251

Net Gain (Loss) on Investment		1,092,041			492,313			6,591,341			1,681			6,415,430
Net Increase (Decrease) in Net Assets Resulting from Operations		1,027,553			470,469			6,268,264			1,806			6,791,286

Increase (Decrease) in Net Assets from Contract Transactions		366,461			(144,871	)		1,653,849			—			194,199

Total Increase (Decrease) in Net Assets		1,394,014			325,598			7,922,113			1,806			6,985,485

Net Assets as of December 31, 2017:	$	4,956,165		$	1,747,868		$	24,077,942		$	17,848		$	67,550,887

Investment Income:
Reinvested Dividends		—			340			—			—			1,058,840
Investment Expense:
Mortality and Expense Risk and Administrative Charges		138,383			25,576			382,483			31			900,570

Net Investment Income (Loss)		(138,383	)		(25,236	)		(382,483	)		(31	)		158,270
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		649,610			210,123			2,930,070			—			2,784,627
Realized Gain (Loss) on Investments		99,224			30,683			301,660			568			(33,799	)

Net Realized Capital Gains (Losses) on Investments		748,834			240,806			3,231,730			568			2,750,828
Net Change in Unrealized Appreciation (Depreciation)		(1,866,694	)		(256,105	)		(3,400,723	)		(810	)		(6,624,071	)

Net Gain (Loss) on Investment		(1,117,860	)		(15,299	)		(168,993	)		(242	)		(3,873,243	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,256,243	)		(40,535	)		(551,476	)		(273	)		(3,714,973	)

Increase (Decrease) in Net Assets from Contract Transactions		9,465,697			(283	)		(1,093,432	)		(17,575	)		(1,917,044	)

Total Increase (Decrease) in Net Assets		8,209,454			(40,818	)		(1,644,908	)		(17,848	)		(5,632,017	)

Net Assets as of December 31, 2018:	$	13,165,619		$	1,707,050		$	22,433,034		$	—		$	61,918,870

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA JPMorgan Asset Allocation - Growth Initial Class Subaccount			TA JPMorgan Asset Allocation - Growth Service Class Subaccount			TA JPMorgan Asset Allocation - Moderate Initial Class Subaccount			TA JPMorgan Asset Allocation - Moderate Service Class Subaccount			TA JPMorgan Asset Allocation - Moderate Growth Initial Class Subaccount
Net Assets as of December 31, 2016:	$	55,366		$	7,545,147		$	903,679		$	281,768,454		$	387,179

Investment Income:
Reinvested Dividends		497			91,470			17,397			4,785,120			7,157
Investment Expense:
Mortality and Expense Risk and Administrative Charges		625			111,225			12,333			3,987,503			5,418

Net Investment Income (Loss)		(128	)		(19,755	)		5,064			797,617			1,739
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		751			163,315			20,709			6,527,746			13,879
Realized Gain (Loss) on Investments		6,501			461,550			43,269			3,417,396			516

Net Realized Capital Gains (Losses) on Investments		7,252			624,865			63,978			9,945,142			14,395
Net Change in Unrealized Appreciation (Depreciation)		2,509			988,914			54,399			28,700,158			53,598

Net Gain (Loss) on Investment		9,761			1,613,779			118,377			38,645,300			67,993
Net Increase (Decrease) in Net Assets Resulting from Operations		9,633			1,594,024			123,441			39,442,917			69,732

Increase (Decrease) in Net Assets from Contract Transactions		(27,519	)		(686,903	)		(302,823	)		(20,559,709	)		(9,350	)

Total Increase (Decrease) in Net Assets		(17,886	)		907,121			(179,382	)		18,883,208			60,382

Net Assets as of December 31, 2017:	$	37,480		$	8,452,268		$	724,297		$	300,651,662		$	447,561

Investment Income:
Reinvested Dividends		713			146,826			12,074			4,688,662			8,397
Investment Expense:
Mortality and Expense Risk and Administrative Charges		526			122,608			9,629			4,131,881			5,836

Net Investment Income (Loss)		187			24,218			2,445			556,781			2,561
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,483			586,919			32,842			14,756,282			23,292
Realized Gain (Loss) on Investments		143			373,069			6,833			3,580,999			630

Net Realized Capital Gains (Losses) on Investments		2,626			959,988			39,675			18,337,281			23,922
Net Change in Unrealized Appreciation (Depreciation)		(7,174	)		(1,990,201	)		(86,965	)		(38,994,466	)		(63,524	)

Net Gain (Loss) on Investment		(4,548	)		(1,030,213	)		(47,290	)		(20,657,185	)		(39,602	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(4,361	)		(1,005,995	)		(44,845	)		(20,100,404	)		(37,041	)

Increase (Decrease) in Net Assets from Contract Transactions		(1	)		(633,474	)		(34,981	)		804,846			(70	)

Total Increase (Decrease) in Net Assets		(4,362	)		(1,639,469	)		(79,826	)		(19,295,558	)		(37,111	)

Net Assets as of December 31, 2018:	$	33,118		$	6,812,799		$	644,471		$	281,356,104		$	410,450

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA JPMorgan Asset Allocation - Moderate Growth Service Class Subaccount			TA JPMorgan Core Bond Service Class Subaccount			TA JPMorgan Enhanced Index Initial Class Subaccount			TA JPMorgan Enhanced Index Service Class Subaccount			TA JPMorgan International Moderate Growth Service Class Subaccount
Net Assets as of December 31, 2016:	$	162,356,929		$	27,671,195		$	610,859		$	4,419,905		$	41,499,204

Investment Income:
Reinvested Dividends		2,750,336			752,250			3,858			23,215			728,183
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,565,430			411,435			8,499			84,306			637,754

Net Investment Income (Loss)		184,906			340,815			(4,641	)		(61,091	)		90,429
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		6,136,986			—			13,601			115,960			—
Realized Gain (Loss) on Investments		3,300,772			(8,348	)		13,904			101,589			487,497

Net Realized Capital Gains (Losses) on Investments		9,437,758			(8,348	)		27,505			217,549			487,497
Net Change in Unrealized Appreciation (Depreciation)		19,852,505			214,915			97,412			810,353			7,485,342

Net Gain (Loss) on Investment		29,290,263			206,567			124,917			1,027,902			7,972,839
Net Increase (Decrease) in Net Assets Resulting from Operations		29,475,169			547,382			120,276			966,811			8,063,268

Increase (Decrease) in Net Assets from Contract Transactions		8,924,250			1,827,168			(8,886	)		1,101,749			930,881

Total Increase (Decrease) in Net Assets		38,399,419			2,374,550			111,390			2,068,560			8,994,149

Net Assets as of December 31, 2017:	$	200,756,348		$	30,045,745		$	722,249		$	6,488,465		$	50,493,353

Investment Income:
Reinvested Dividends		3,253,362			880,462			8,098			54,038			1,067,770
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,803,047			423,530			9,262			92,021			693,539

Net Investment Income (Loss)		450,315			456,932			(1,164	)		(37,983	)		374,231
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		10,374,870			—			31,726			268,265			499,247
Realized Gain (Loss) on Investments		4,192,277			(181,153	)		16,019			405,153			801,360

Net Realized Capital Gains (Losses) on Investments		14,567,147			(181,153	)		47,745			673,418			1,300,607
Net Change in Unrealized Appreciation (Depreciation)		(31,733,959	)		(720,722	)		(95,937	)		(1,052,337	)		(8,292,199	)

Net Gain (Loss) on Investment		(17,166,812	)		(901,875	)		(48,192	)		(378,919	)		(6,991,592	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(16,716,497	)		(444,943	)		(49,356	)		(416,902	)		(6,617,361	)

Increase (Decrease) in Net Assets from Contract Transactions		(9,717,118	)		557,592			(34,496	)		(777,535	)		(1,938,414	)

Total Increase (Decrease) in Net Assets		(26,433,615	)		112,649			(83,852	)		(1,194,437	)		(8,555,775	)

Net Assets as of December 31, 2018:	$	174,322,733		$	30,158,394		$	638,397		$	5,294,028		$	41,937,578

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA JPMorgan Mid Cap Value Service Class Subaccount			TA JPMorgan Tactical Allocation Service Class Subaccount			TA Legg Mason Dynamic Allocation - Balanced Service Class Subaccount			TA Legg Mason Dynamic Allocation - Growth Service Class Subaccount			TA Levin Large Cap Value Service Class Subaccount⁽¹⁾
Net Assets as of December 31, 2016:	$	26,255,068		$	83,825,181		$	96,492,892		$	62,664,292		$	—

Investment Income:
Reinvested Dividends		119,445			1,361,111			1,017,011			589,211			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		342,665			1,149,477			1,217,044			816,852			—

Net Investment Income (Loss)		(223,220	)		211,634			(200,033	)		(227,641	)		—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		4,474,365			—			—			—			—
Realized Gain (Loss) on Investments		(207,207	)		1,522,803			461,427			492,487			—

Net Realized Capital Gains (Losses) on Investments		4,267,158			1,522,803			461,427			492,487			—
Net Change in Unrealized Appreciation (Depreciation)		(1,674,708	)		4,136,507			7,695,438			6,400,441			—

Net Gain (Loss) on Investment		2,592,450			5,659,310			8,156,865			6,892,928			—
Net Increase (Decrease) in Net Assets Resulting from Operations		2,369,230			5,870,944			7,956,832			6,665,287			—

Increase (Decrease) in Net Assets from Contract Transactions		(8,004,713	)		(3,914,837	)		(10,524,026	)		(8,832,995	)		—

Total Increase (Decrease) in Net Assets		(5,635,483	)		1,956,107			(2,567,194	)		(2,167,708	)		—

Net Assets as of December 31, 2017:	$	20,619,585		$	85,781,288		$	93,925,698		$	60,496,584		$	—

Investment Income:
Reinvested Dividends		116,458			1,594,724			1,225,870			715,240			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		280,117			1,108,796			1,164,897			798,332			276

Net Investment Income (Loss)		(163,659	)		485,928			60,973			(83,092	)		(276	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		418,723			2,344,426			—			—			—
Realized Gain (Loss) on Investments		(2,090,995	)		962,206			507,288			603,637			239

Net Realized Capital Gains (Losses) on Investments		(1,672,272	)		3,306,632			507,288			603,637			239
Net Change in Unrealized Appreciation (Depreciation)		(549,617	)		(7,554,818	)		(4,571,719	)		(3,892,092	)		(14,117	)

Net Gain (Loss) on Investment		(2,221,889	)		(4,248,186	)		(4,064,431	)		(3,288,455	)		(13,878	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(2,385,548	)		(3,762,258	)		(4,003,458	)		(3,371,547	)		(14,154	)

Increase (Decrease) in Net Assets from Contract Transactions		(3,813,905	)		(3,969,888	)		(9,202,697	)		(4,382,516	)		109,171

Total Increase (Decrease) in Net Assets		(6,199,453	)		(7,732,146	)		(13,206,155	)		(7,754,063	)		95,017

Net Assets as of December 31, 2018:	$	14,420,132		$	78,049,142		$	80,719,543		$	52,742,521		$	95,017

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Madison Diversified Income Service Class Subaccount⁽¹⁾			TA Managed Risk - Balanced ETF Service Class Subaccount			TA Managed Risk - Conservative ETF Service Class Subaccount			TA Managed Risk - Growth ETF Service Class Subaccount			TA Market Participation Strategy Service Class Subaccount
Net Assets as of December 31, 2016:	$	—		$	438,296,472		$	88,366,488		$	354,352,467		$	34,140,280

Investment Income:
Reinvested Dividends		1,644			7,630,584			1,642,084			6,091,994			106,037
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,526			6,049,692			1,176,171			5,085,387			466,172

Net Investment Income (Loss)		(1,882	)		1,580,892			465,913			1,006,607			(360,135	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,340			—			—			—			—
Realized Gain (Loss) on Investments		1,574			2,259,292			230,893			(437,805	)		392,466

Net Realized Capital Gains (Losses) on Investments		3,914			2,259,292			230,893			(437,805	)		392,466
Net Change in Unrealized Appreciation (Depreciation)		27,010			47,416,434			7,497,433			57,715,356			2,985,640

Net Gain (Loss) on Investment		30,924			49,675,726			7,728,326			57,277,551			3,378,106
Net Increase (Decrease) in Net Assets Resulting from Operations		29,042			51,256,618			8,194,239			58,284,158			3,017,971

Increase (Decrease) in Net Assets from Contract Transactions		1,063,674			(19,040,542	)		(6,577,325	)		(17,267,754	)		(2,559,607	)

Total Increase (Decrease) in Net Assets		1,092,716			32,216,076			1,616,914			41,016,404			458,364

Net Assets as of December 31, 2017:	$	1,092,716		$	470,512,548		$	89,983,402		$	395,368,871		$	34,598,644

Investment Income:
Reinvested Dividends		26,495			7,722,594			1,519,803			6,021,010			123,458
Investment Expense:
Mortality and Expense Risk and Administrative Charges		22,335			6,126,246			1,116,734			5,114,833			466,848

Net Investment Income (Loss)		4,160			1,596,348			403,069			906,177			(343,390	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		36,475			—			561,839			—			1,855,715
Realized Gain (Loss) on Investments		(7,148	)		3,746,811			555,022			2,206,422			565,114

Net Realized Capital Gains (Losses) on Investments		29,327			3,746,811			1,116,861			2,206,422			2,420,829
Net Change in Unrealized Appreciation (Depreciation)		(71,172	)		(31,797,214	)		(5,607,469	)		(33,664,024	)		(3,372,930	)

Net Gain (Loss) on Investment		(41,845	)		(28,050,403	)		(4,490,608	)		(31,457,602	)		(952,101	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(37,685	)		(26,454,055	)		(4,087,539	)		(30,551,425	)		(1,295,491	)

Increase (Decrease) in Net Assets from Contract Transactions		898,739			(21,595,017	)		(7,919,425	)		(35,407,291	)		(3,057,895	)

Total Increase (Decrease) in Net Assets		861,054			(48,049,072	)		(12,006,964	)		(65,958,716	)		(4,353,386	)

Net Assets as of December 31, 2018:	$	1,953,770		$	422,463,476		$	77,976,438		$	329,410,155		$	30,245,258

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Morgan Stanley Capital Growth Initial Class Subaccount			TA Morgan Stanley Capital Growth Service Class Subaccount			TA Multi- Managed Balanced Initial Class Subaccount			TA Multi- Managed Balanced Service Class Subaccount			TA Multi- Manager Alternative Strategies Service Class Subaccount
Net Assets as of December 31, 2016:	$	63,699		$	3,709,725		$	27,775		$	83,405,643		$	212,059

Investment Income:
Reinvested Dividends		—			—			253			954,882			3,377
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,099			71,751			410			1,583,130			2,884

Net Investment Income (Loss)		(1,099	)		(71,751	)		(157	)		(628,248	)		493
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		5,052			354,404			331			1,439,384			—
Realized Gain (Loss) on Investments		1,376			65,403			34			939,730			(856	)

Net Realized Capital Gains (Losses) on Investments		6,428			419,807			365			2,379,114			(856	)
Net Change in Unrealized Appreciation (Depreciation)		21,482			1,290,965			3,282			11,940,109			8,975

Net Gain (Loss) on Investment		27,910			1,710,772			3,647			14,319,223			8,119
Net Increase (Decrease) in Net Assets Resulting from Operations		26,811			1,639,021			3,490			13,690,975			8,612

Increase (Decrease) in Net Assets from Contract Transactions		(6,243	)		807,132			(1	)		36,567,300			62,930

Total Increase (Decrease) in Net Assets		20,568			2,446,153			3,489			50,258,275			71,542

Net Assets as of December 31, 2017:	$	84,267		$	6,155,878		$	31,264		$	133,663,918		$	283,601

Investment Income:
Reinvested Dividends		—			—			450			1,653,695			2,421
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,439			106,364			438			1,775,449			3,471

Net Investment Income (Loss)		(1,439	)		(106,364	)		12			(121,754	)		(1,050	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		17,738			1,335,908			1,233			5,425,736			—
Realized Gain (Loss) on Investments		160			374,059			52			1,589,333			(588	)

Net Realized Capital Gains (Losses) on Investments		17,898			1,709,967			1,285			7,015,069			(588	)
Net Change in Unrealized Appreciation (Depreciation)		(12,256	)		(1,459,765	)		(2,860	)		(13,776,192	)		(16,395	)

Net Gain (Loss) on Investment		5,642			250,202			(1,575	)		(6,761,123	)		(16,983	)
Net Increase (Decrease) in Net Assets Resulting from Operations		4,203			143,838			(1,563	)		(6,882,877	)		(18,033	)

Increase (Decrease) in Net Assets from Contract Transactions		5,623			1,136,063			1			(1,883,475	)		32,901

Total Increase (Decrease) in Net Assets		9,826			1,279,901			(1,562	)		(8,766,352	)		14,868

Net Assets as of December 31, 2018:	$	94,093		$	7,435,779		$	29,702		$	124,897,566		$	298,469

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA PIMCO Tactical - Balanced Service Class Subaccount			TA PIMCO Tactical - Conservative Service Class Subaccount			TA PIMCO Tactical - Growth Service Class Subaccount			TA PIMCO Total Return Initial Class Subaccount			TA PIMCO Total Return Service Class Subaccount
Net Assets as of December 31, 2016:	$	37,518,764		$	24,094,824		$	30,537,277		$	279,735		$	76,869,825

Investment Income:
Reinvested Dividends		109,788			307,424			141,449			—			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		505,079			323,075			464,653			4,548			1,088,861

Net Investment Income (Loss)		(395,291	)		(15,651	)		(323,204	)		(4,548	)		(1,088,861	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,799,761			750,889			1,113,053			3,561			770,699
Realized Gain (Loss) on Investments		549,708			196,314			208,047			(207	)		(536,521	)

Net Realized Capital Gains (Losses) on Investments		2,349,469			947,203			1,321,100			3,354			234,178
Net Change in Unrealized Appreciation (Depreciation)		1,762,609			1,109,051			3,299,578			11,461			3,272,310

Net Gain (Loss) on Investment		4,112,078			2,056,254			4,620,678			14,815			3,506,488
Net Increase (Decrease) in Net Assets Resulting from Operations		3,716,787			2,040,603			4,297,474			10,267			2,417,627

Increase (Decrease) in Net Assets from Contract Transactions		(3,836,996	)		(1,395,302	)		2,250,280			58,543			(2,594,901	)

Total Increase (Decrease) in Net Assets		(120,209	)		645,301			6,547,754			68,810			(177,274	)

Net Assets as of December 31, 2017:	$	37,398,555		$	24,740,125		$	37,085,031		$	348,545		$	76,692,551

Investment Income:
Reinvested Dividends		1,140,070			753,052			1,138,284			9,076			1,793,248
Investment Expense:
Mortality and Expense Risk and Administrative Charges		488,682			312,182			499,196			4,726			1,034,078

Net Investment Income (Loss)		651,388			440,870			639,088			4,350			759,170
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,609,039			1,426,668			3,687,457			1,790			393,464
Realized Gain (Loss) on Investments		239,223			41,760			244,397			(843	)		(741,614	)

Net Realized Capital Gains (Losses) on Investments		2,848,262			1,468,428			3,931,854			947			(348,150	)
Net Change in Unrealized Appreciation (Depreciation)		(6,402,693	)		(3,370,862	)		(7,877,149	)		(12,495	)		(2,269,582	)

Net Gain (Loss) on Investment		(3,554,431	)		(1,902,434	)		(3,945,295	)		(11,548	)		(2,617,732	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(2,903,043	)		(1,461,564	)		(3,306,207	)		(7,198	)		(1,858,562	)

Increase (Decrease) in Net Assets from Contract Transactions		(2,489,100	)		(2,938,076	)		(574,922	)		(12,357	)		(4,066,264	)

Total Increase (Decrease) in Net Assets		(5,392,143	)		(4,399,640	)		(3,881,129	)		(19,555	)		(5,924,826	)

Net Assets as of December 31, 2018:	$	32,006,412		$	20,340,485		$	33,203,902		$	328,990		$	70,767,725

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA PineBridge Inflation Opportunities Service Class Subaccount			TA ProFunds UltraBear Service Class (OAM) Subaccount			TA QS Investors Active Asset Allocation - Conservative Service Class Subaccount			TA QS Investors Active Asset Allocation - Moderate Service Class Subaccount
Net Assets as of December 31, 2016:	$	14,601,121		$	1,139,167		$	25,125,769		$	89,329,578

Investment Income:
Reinvested Dividends		33,249			—			436,081			1,391,175
Investment Expense:
Mortality and Expense Risk and Administrative Charges		216,637			9,710			319,673			1,200,228

Net Investment Income (Loss)		(183,388	)		(9,710	)		116,408			190,947
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			—
Realized Gain (Loss) on Investments		(147,104	)		(357,311	)		44,630			158,098

Net Realized Capital Gains (Losses) on Investments		(147,104	)		(357,311	)		44,630			158,098
Net Change in Unrealized Appreciation (Depreciation)		585,342			91,619			2,316,560			11,529,385

Net Gain (Loss) on Investment		438,238			(265,692	)		2,361,190			11,687,483
Net Increase (Decrease) in Net Assets Resulting from Operations		254,850			(275,402	)		2,477,598			11,878,430

Increase (Decrease) in Net Assets from Contract Transactions		538,063			(384,028	)		(1,512,803	)		(7,316,217	)

Total Increase (Decrease) in Net Assets		792,913			(659,430	)		964,795			4,562,213

Net Assets as of December 31, 2017:	$	15,394,034		$	479,737		$	26,090,564		$	93,891,791

Investment Income:
Reinvested Dividends		273,949			—			373,891			1,312,059
Investment Expense:
Mortality and Expense Risk and Administrative Charges		219,119			8,946			299,242			1,203,686

Net Investment Income (Loss)		54,830			(8,946	)		74,649			108,373
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			—			—			—
Realized Gain (Loss) on Investments		(162,606	)		(199,596	)		197,184			620,251

Net Realized Capital Gains (Losses) on Investments		(162,606	)		(199,596	)		197,184			620,251
Net Change in Unrealized Appreciation (Depreciation)		(359,622	)		231,222			(1,247,490	)		(5,669,763	)

Net Gain (Loss) on Investment		(522,228	)		31,626			(1,050,306	)		(5,049,512	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(467,398	)		22,680			(975,657	)		(4,941,139	)

Increase (Decrease) in Net Assets from Contract Transactions		209,396			996,533			(3,169,664	)		(5,461,714	)

Total Increase (Decrease) in Net Assets		(258,002	)		1,019,213			(4,145,321	)		(10,402,853	)

Net Assets as of December 31, 2018:	$	15,136,032		$	1,498,950		$	21,945,243		$	83,488,938

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA QS Investors Active Asset Allocation - Moderate Growth Service Class Subaccount			TA Small/ Mid Cap Value Initial Class Subaccount			TA Small/ Mid Cap Value Service Class Subaccount			TA T. Rowe Price Small Cap Initial Class Subaccount			TA T. Rowe Price Small Cap Service Class Subaccount
Net Assets as of December 31, 2016:	$	53,011,793		$	3,209,500		$	10,341,703		$	265,399		$	29,755,780

Investment Income:
Reinvested Dividends		702,402			36,027			111,492			—			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		758,962			42,382			166,879			2,970			518,055

Net Investment Income (Loss)		(56,560	)		(6,355	)		(55,387	)		(2,970	)		(518,055	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			280,568			1,052,209			19,275			2,215,725
Realized Gain (Loss) on Investments		(298,124	)		61,978			69,833			3,343			584,354

Net Realized Capital Gains (Losses) on Investments		(298,124	)		342,546			1,122,042			22,618			2,800,079
Net Change in Unrealized Appreciation (Depreciation)		9,798,934			92,611			398,645			39,860			3,952,599

Net Gain (Loss) on Investment		9,500,810			435,157			1,520,687			62,478			6,752,678
Net Increase (Decrease) in Net Assets Resulting from Operations		9,444,250			428,802			1,465,300			59,508			6,234,623

Increase (Decrease) in Net Assets from Contract Transactions		(4,463,183	)		(330,412	)		955,110			44,909			1,634,981

Total Increase (Decrease) in Net Assets		4,981,067			98,390			2,420,410			104,417			7,869,604

Net Assets as of December 31, 2017:	$	57,992,860		$	3,307,890		$	12,762,113		$	369,816		$	37,625,384

Investment Income:
Reinvested Dividends		722,502			29,124			87,628			—			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		774,830			42,615			189,996			3,662			568,399

Net Investment Income (Loss)		(52,328	)		(13,491	)		(102,368	)		(3,662	)		(568,399	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—			315,138			1,297,030			19,093			2,007,908
Realized Gain (Loss) on Investments		307,032			14,311			(186,995	)		11,402			1,211,003

Net Realized Capital Gains (Losses) on Investments		307,032			329,449			1,110,035			30,495			3,218,911
Net Change in Unrealized Appreciation (Depreciation)		(4,251,924	)		(715,021	)		(2,712,175	)		(54,860	)		(5,418,152	)

Net Gain (Loss) on Investment		(3,944,892	)		(385,572	)		(1,602,140	)		(24,365	)		(2,199,241	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,997,220	)		(399,063	)		(1,704,508	)		(28,027	)		(2,767,640	)

Increase (Decrease) in Net Assets from Contract Transactions		(5,271,929	)		(133,387	)		44,069			(40,018	)		(4,713,670	)

Total Increase (Decrease) in Net Assets		(9,269,149	)		(532,450	)		(1,660,439	)		(68,045	)		(7,481,310	)

Net Assets as of December 31, 2018:	$	48,723,711		$	2,775,440		$	11,101,674		$	301,771		$	30,144,074

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA Torray Concentrated Growth Initial Class Subaccount			TA Torray Concentrated Growth Service Class Subaccount			TA TS&W International Equity Initial Class Subaccount			TA TS&W International Equity Service Class Subaccount			TA U.S. Equity Index Service Class Subaccount⁽¹⁾
Net Assets as of December 31, 2016:	$	1,386,531		$	2,608,184		$	672,352		$	2,505,044		$	—

Investment Income:
Reinvested Dividends		5,777			4,352			15,916			62,539			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		21,007			43,656			9,790			47,180			2,090

Net Investment Income (Loss)		(15,230	)		(39,304	)		6,126			15,359			(2,090	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		26,772			50,264			—			—			—
Realized Gain (Loss) on Investments		32,667			48,091			11,336			19,059			324

Net Realized Capital Gains (Losses) on Investments		59,439			98,355			11,336			19,059			324
Net Change in Unrealized Appreciation (Depreciation)		267,182			530,862			121,211			537,836			30,251

Net Gain (Loss) on Investment		326,621			629,217			132,547			556,895			30,575
Net Increase (Decrease) in Net Assets Resulting from Operations		311,391			589,913			138,673			572,254			28,485

Increase (Decrease) in Net Assets from Contract Transactions		(94,222	)		(91,023	)		(45,566	)		537,894			889,741

Total Increase (Decrease) in Net Assets		217,169			498,890			93,107			1,110,148			918,226

Net Assets as of December 31, 2017:	$	1,603,700		$	3,107,074		$	765,459		$	3,615,192		$	918,226

Investment Income:
Reinvested Dividends		3,737			—			16,784			65,666			9,860
Investment Expense:
Mortality and Expense Risk and Administrative Charges		22,544			44,846			9,692			49,850			59,921

Net Investment Income (Loss)		(18,807	)		(44,846	)		7,092			15,816			(50,061	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		83,371			141,111			—			—			6,371
Realized Gain (Loss) on Investments		64,129			105,937			10,755			57,355			4,866

Net Realized Capital Gains (Losses) on Investments		147,500			247,048			10,755			57,355			11,237
Net Change in Unrealized Appreciation (Depreciation)		(207,526	)		(344,019	)		(137,315	)		(644,158	)		(543,333	)

Net Gain (Loss) on Investment		(60,026	)		(96,971	)		(126,560	)		(586,803	)		(532,096	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(78,833	)		(141,817	)		(119,468	)		(570,987	)		(582,157	)

Increase (Decrease) in Net Assets from Contract Transactions		(19,803	)		(344,215	)		(40,482	)		(193,790	)		5,357,749

Total Increase (Decrease) in Net Assets		(98,636	)		(486,032	)		(159,950	)		(764,777	)		4,775,592

Net Assets as of December 31, 2018:	$	1,505,064		$	2,621,042		$	605,509		$	2,850,415		$	5,693,818

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	TA WMC US Growth Initial Class Subaccount			TA WMC US Growth Service Class Subaccount			Vanguard^® Equity Index Subaccount			Vanguard^® International Subaccount			Vanguard^® Mid-Cap Index Subaccount
Net Assets as of December 31, 2016:	$	2,506,822		$	16,149,242		$	802,610		$	457,069		$	—

Investment Income:
Reinvested Dividends		11,542			41,368			15,716			6,026			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		38,372			285,215			7,033			4,494			—

Net Investment Income (Loss)		(26,830	)		(243,847	)		8,683			1,532			—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		65,316			481,573			26,843			3,685			—
Realized Gain (Loss) on Investments		18,256			201,515			737			674			—

Net Realized Capital Gains (Losses) on Investments		83,572			683,088			27,580			4,359			—
Net Change in Unrealized Appreciation (Depreciation)		610,852			4,122,112			129,802			183,954			—

Net Gain (Loss) on Investment		694,424			4,805,200			157,382			188,313			—
Net Increase (Decrease) in Net Assets Resulting from Operations		667,594			4,561,353			166,065			189,845			—

Increase (Decrease) in Net Assets from Contract Transactions		(163,706	)		1,368,437			—			(399	)		—

Total Increase (Decrease) in Net Assets		503,888			5,929,790			166,065			189,446			—

Net Assets as of December 31, 2017:	$	3,010,710		$	22,079,032		$	968,675		$	646,515		$	—

Investment Income:
Reinvested Dividends		14,347			63,161			16,518			4,941			—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		41,277			339,801			8,035			5,147			—

Net Investment Income (Loss)		(26,930	)		(276,640	)		8,483			(206	)		—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		247,569			1,939,446			16,079			16,536			—
Realized Gain (Loss) on Investments		103,844			897,936			1,482			4,484			—

Net Realized Capital Gains (Losses) on Investments		351,413			2,837,382			17,561			21,020			—
Net Change in Unrealized Appreciation (Depreciation)		(347,416	)		(2,755,160	)		(77,112	)		(105,138	)		—

Net Gain (Loss) on Investment		3,997			82,222			(59,551	)		(84,118	)		—
Net Increase (Decrease) in Net Assets Resulting from Operations		(22,933	)		(194,418	)		(51,068	)		(84,324	)		—

Increase (Decrease) in Net Assets from Contract Transactions		(321,752	)		(1,677,132	)		(1	)		(9,908	)		—

Total Increase (Decrease) in Net Assets		(344,685	)		(1,871,550	)		(51,069	)		(94,232	)		—

Net Assets as of December 31, 2018:	$	2,666,025		$	20,207,482		$	917,606		$	552,283		$	—

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted


	Vanguard^® Real Estate Index Subaccount		Vanguard^® Short-Term Investment Grade Subaccount		Vanguard^® Total Bond Market Index Subaccount			Voya Global Perspectives Class S Shares Subaccount		Voya Large Cap Value Class S Shares Subaccount
Net Assets as of December 31, 2016:	$	—	$	—	$	350,212		$	—	$	—

Investment Income:
Reinvested Dividends		—		—		8,405			—		—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		—		—		2,844			—		—

Net Investment Income (Loss)		—		—		5,561			—		—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—		—		1,132			—		—
Realized Gain (Loss) on Investments		—		—		(136	)		—		—

Net Realized Capital Gains (Losses) on Investments		—		—		996			—		—
Net Change in Unrealized Appreciation (Depreciation)		—		—		2,755			—		—

Net Gain (Loss) on Investment		—		—		3,751			—		—
Net Increase (Decrease) in Net Assets Resulting from Operations		—		—		9,312			—		—

Increase (Decrease) in Net Assets from Contract Transactions		—		—		—			—		—

Total Increase (Decrease) in Net Assets		—		—		9,312			—		—

Net Assets as of December 31, 2017:	$	—	$	—	$	359,524		$	—	$	—

Investment Income:
Reinvested Dividends		—		—		8,087			—		—
Investment Expense:
Mortality and Expense Risk and Administrative Charges		—		—		2,831			—		—

Net Investment Income (Loss)		—		—		5,256			—		—
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		—		—		685			—		—
Realized Gain (Loss) on Investments		—		—		(229	)		—		—

Net Realized Capital Gains (Losses) on Investments		—		—		456			—		—
Net Change in Unrealized Appreciation (Depreciation)		—		—		(9,052	)		—		—

Net Gain (Loss) on Investment		—		—		(8,596	)		—		—
Net Increase (Decrease) in Net Assets Resulting from Operations		—		—		(3,340	)		—		—

Increase (Decrease) in Net Assets from Contract Transactions		—		—		(1	)		—		—

Total Increase (Decrease) in Net Assets		—		—		(3,341	)		—		—

Net Assets as of December 31, 2018:	$	—	$	—	$	356,183		$	—	$	—

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2017 and 2018, Except as Noted

Voya
Strategic
Allocation
Conservative
Class S Shares
Subaccount

Voya

Strategic
Allocation
Moderate
Class S Shares
Subaccount

Wanger
International
Subaccount

Wanger USA
Subaccount

Net Assets as of December 31, 2016:

—

Investment Income:

Reinvested Dividends

—

Investment Expense:

Mortality and Expense Risk and Administrative Charges

—

Net Investment Income (Loss)

—

Increase (Decrease) in Net Assets from Operations:

Capital Gain Distributions

—

Realized Gain (Loss) on Investments

—

Net Realized Capital Gains (Losses) on Investments

—

Net Change in Unrealized Appreciation (Depreciation)

—

Net Gain (Loss) on Investment

—

Net Increase (Decrease) in Net Assets Resulting from Operations

—

Increase (Decrease) in Net Assets from Contract Transactions

—

Total Increase (Decrease) in Net Assets

—

Net Assets as of December 31, 2017:

—

Investment Income:

Reinvested Dividends

—

Investment Expense:

Mortality and Expense Risk and Administrative Charges

—

Net Investment Income (Loss)

—

Increase (Decrease) in Net Assets from Operations:

Capital Gain Distributions

—

Realized Gain (Loss) on Investments

—

Net Realized Capital Gains (Losses) on Investments

—

Net Change in Unrealized Appreciation (Depreciation)

—

Net Gain (Loss) on Investment

—

Net Increase (Decrease) in Net Assets Resulting from Operations

—

Increase (Decrease) in Net Assets from Contract Transactions

—

Total Increase (Decrease) in Net Assets

—

Net Assets as of December 31, 2018:

—

See Accompanying Notes.

⁽¹⁾

See Footnote 1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

1. Organization

Separate Accont VA BNY (the Separate Account) is a segregated investment account of Transamerica Financial Life Insurance Company (TFLIC), 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. TFLIC and the Separate Account are regulated by the Securities and Exchange Commission. The assets and liabilities of the Separate Account are clearly identified and distinguished from TFLIC’s other assets and liabilities. 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 NY Variable Annuity, Transamerica Variable Annuity Series, Partners Variable Annuity Series, Transamerica Landmark^SM NY Variable Annuity, Transamerica Axiom^SM II, Transamerica Principium^SM III, Transamerica Retirement Income Plus, Transamerica Income Elite^SM II, Transamerica Advisor Elite II, Transamerica Variable Annuity O-Share, Transamerica Liberty^SM NY Variable Annuity, Transamerica Axiom^SM NY Variable Annuity, Transamerica Principium^SM II Variable Annuity, Income Elite^SM Variable Annuity, Transamerica Variable Annuity I-Share, and Transamerica Inspire^SM Variable Annuity.

TA ProFunds UltraBear Service Class (OAM) is included in the subaccount listing only to facilitate a contract owner purchase option.

Subaccount Investment by Mutual Fund:


Subaccount		Mutual Fund
AB Variable Products Series Fund, Inc.		AB Variable Products Series Fund, Inc.
AB Balanced Wealth Strategy Class B Shares		AB Balanced Wealth Strategy Portfolio Class B Shares
AB Growth and Income Class B Shares		AB Growth and Income Portfolio Class B Shares
AB Large Cap Growth Class B Shares		AB Large Cap Growth Portfolio Class B Shares
American Funds Insurance Series^®		American Funds Insurance Series^®
American Funds - Asset Allocation Class 2 Shares		American Funds - Asset Allocation Fund Class 2 Shares
American Funds - Bond Class 2 Shares		American Funds - Bond Fund Class 2 Shares
American Funds - Growth Class 2 Shares		American Funds - Growth Fund Class 2 Shares
American Funds - Growth-Income Class 2 Shares		American Funds - Growth-Income Fund Class 2 Shares
American Funds - International Class 2 Shares		American Funds - International Fund Class 2 Shares
Fidelity^® Variable Insurance Products Fund		Fidelity^® Variable Insurance Products Fund
Fidelity^® VIP Balanced Service Class 2		Fidelity^® VIP Balanced Service Portfolio Class 2
Fidelity^® VIP Contrafund^® Initial Class		Fidelity^® VIP Contrafund^® Portfolio Initial Class
Fidelity^® VIP Contrafund^® Service Class 2		Fidelity^® VIP Contrafund^® Portfolio Service Class 2
Fidelity^® VIP Equity-Income Service Class 2		Fidelity^® VIP Equity-Income Portfolio Service Class 2
Fidelity^® VIP Growth Service Class 2		Fidelity^® VIP Growth Portfolio Service Class 2
Fidelity^® VIP Growth Opportunities Service Class 2		Fidelity^® VIP Growth Opportunities Portfolio Service Class 2
Fidelity^® VIP Mid Cap Initial Class		Fidelity^® VIP Mid Cap Portfolio Initial Class
Fidelity^® Variable Insurance Products Fund		Fidelity^® Variable Insurance Products Fund
Fidelity^® VIP Mid Cap Service Class 2		Fidelity^® VIP Mid Cap Portfolio Service Class 2
Fidelity^® VIP Value Strategies Initial Class		Fidelity^® VIP Value Strategies Portfolio Initial Class
Fidelity^® VIP Value Strategies Service Class 2		Fidelity^® VIP Value Strategies Portfolio Service Class 2
Franklin Templeton Variable Insurance Products Trust		Franklin Templeton Variable Insurance Products Trust
Franklin Founding Funds Allocation Class 4 Shares		Franklin Founding Funds Allocation Fund Class 4 Shares
Franklin Income Class 2 Shares		Franklin Income Fund Class 2 Shares
Franklin Mutual Shares Class 2 Shares		Franklin Mutual Shares Fund Class 2 Shares
Franklin Templeton Foreign Class 2 Shares		Franklin Templeton Foreign Fund Class 2 Shares

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

1. Organization (continued)

Subaccount Investment by Mutual Fund:


Subaccount		Mutual Fund
AIM Variable Insurance Funds (Invesco Variable Insurance Funds)		AIM Variable Insurance Funds (Invesco Variable Insurance Funds)
Invesco V.I. American Franchise Series II Shares		Invesco V.I. American Franchise Fund Series II Shares
Janus Aspen Series		Janus Aspen Series
Janus Henderson - Enterprise Service Shares		Janus Henderson - Enterprise Service Shares
Janus Henderson - Global Research Service Shares		Janus Henderson - Global Research Portfolio Service Shares
Janus Henderson - Mid Cap Value Service Shares		Janus Henderson - Mid Cap Value Portfolio Service Shares
JPMorgan Insurance Trust		JPMorgan Insurance Trust
JPMorgan Insurance Trust Core Bond Class 1 Shares		JPMorgan Insurance Trust Core Bond Class 1 Shares
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares		JPMorgan Insurance Trust Mid Cap Value Class 1 Shares
JPMorgan Insurance Trust Small Cap Core Class 1 Shares		JPMorgan Insurance Trust Small Cap Core Class 1 Shares
JPMorgan Insurance Trust U.S. Equity Class 1 Shares		JPMorgan Insurance Trust U.S. Equity Class 1 Shares
MFS^® Variable Insurance Trust		MFS^® Variable Insurance Trust
MFS^® New Discovery Service Class		MFS^® New Discovery Series Service Class
MFS^® Total Return Service Class		MFS^® Total Return Series Service Class
State Street Variable Insurance Series Funds, Inc.		State Street Variable Insurance Series Funds, Inc.
State Street Total Return V.I.S. Class 3 Shares		State Street Total Return V.I.S. Fund Class 3 Shares
Transamerica Series Trust		Transamerica Series Trust
TA 60/40 Allocation Service Class		Transamerica 60/40 Allocation VP Service Class
TA Aegon High Yield Bond Initial Class		Transamerica Aegon High Yield Bond VP Initial Class
TA Aegon High Yield Bond Service Class		Transamerica Aegon High Yield Bond VP Service Class
TA Aegon U.S. Government Securities Initial Class		Transamerica Aegon U.S. Government Securities VP Initial Class
TA Aegon U.S. Government Securities Service Class		Transamerica Aegon U.S. Government Securities VP Service Class
TA American Funds Managed Risk - Balanced Service Class		Transamerica American Funds Managed Risk - Balanced VP Service Class
TA Barrow Hanley Dividend Focused Initial Class		Transamerica Barrow Hanley Dividend Focused VP Initial Class
TA Barrow Hanley Dividend Focused Service Class		Transamerica Barrow Hanley Dividend Focused VP Service Class
TA BlackRock Equity Smart Beta 100 Service Class		Transamerica BlackRock Equity Smart Beta 100 VP Service Class
TA BlackRock Global Allocation Service Class		Transamerica BlackRock Global Allocation VP Service Class
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		Transamerica BlackRock Global Allocation Managed Risk - Balanced VP Service Class
TA BlackRock Global Allocation Managed Risk - Growth Service Class		Transamerica BlackRock Global Allocation Managed Risk - Growth VP Service Class
TA BlackRock Global Real Estate Securities Initial Class		Transamerica BlackRock Global Real Estate Securities VP Initial Class
TA BlackRock Global Real Estate Securities Service Class		Transamerica BlackRock Global Real Estate Securities VP Service Class
TA BlackRock Government Money Market Initial Class		Transamerica BlackRock Government Money Market VP Initial Class
TA BlackRock Government Money Market Service Class		Transamerica BlackRock Government Money Market VP Service Class
TA BlackRock Smart Beta 40 Initial Class		Transamerica BlackRock Smart Beta 40 VP Initial Class
TA BlackRock Smart Beta 40 Service Class		Transamerica BlackRock Smart Beta 40 VP Service Class
TA BlackRock Smart Beta 50 Service Class		Transamerica BlackRock Smart Beta 50 VP Service Class
TA BlackRock Smart Beta 75 Service Class		Transamerica BlackRock Smart Beta 75 VP Service Class
TA BlackRock Tactical Allocation Service Class		Transamerica BlackRock Tactical Allocation VP Service Class
TA Greystone International Growth Initial Class		Transamerica Greystone International Growth VP Initial Class
TA Greystone International Growth Service Class		Transamerica Greystone International Growth VP Service Class
TA International Equity Index Service Class		Transamerica International Equity Index VP Service Class
TA Janus Balanced Service Class		Transamerica Janus Balanced VP Service Class
TA Janus Mid-Cap Growth Initial Class		Transamerica Janus Mid-Cap Growth VP Initial Class
TA Janus Mid-Cap Growth Service Class		Transamerica Janus Mid-Cap Growth VP Service Class

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

1. Organization (continued)

Subaccount Investment by Mutual Fund:


Subaccount		Mutual Fund
Transamerica Series Trust		Transamerica Series Trust
TA Jennison Growth Initial Class		Transamerica Jennison Growth VP Initial Class
TA Jennison Growth Service Class		Transamerica Jennison Growth VP Service Class
TA JPMorgan Asset Allocation - Conservative Initial Class		Transamerica JPMorgan Asset Allocation - Conservative VP Initial Class
TA JPMorgan Asset Allocation - Conservative Service Class		Transamerica JPMorgan Asset Allocation - Conservative VP Service Class
TA JPMorgan Asset Allocation - Growth Initial Class		Transamerica JPMorgan Asset Allocation - Growth VP Initial Class
TA JPMorgan Asset Allocation - Growth Service Class		Transamerica JPMorgan Asset Allocation - Growth VP Service Class
TA JPMorgan Asset Allocation - Moderate Initial Class		Transamerica JPMorgan Asset Allocation - Moderate VP Initial Class
TA JPMorgan Asset Allocation - Moderate Service Class		Transamerica JPMorgan Asset Allocation - Moderate VP Service Class
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		Transamerica JPMorgan Asset Allocation - Moderate Growth VP Initial Class
TA JPMorgan Asset Allocation - Moderate Growth Service Class		Transamerica JPMorgan Asset Allocation - Moderate Growth VP Service Class
TA JPMorgan Core Bond Service Class		Transamerica JPMorgan Core Bond VP Service Class
TA JPMorgan Enhanced Index Initial Class		Transamerica JPMorgan Enhanced Index VP Initial Class
TA JPMorgan Enhanced Index Service Class		Transamerica JPMorgan Enhanced Index VP Service Class
TA JPMorgan International Moderate Growth Service Class		Transamerica JPMorgan International Moderate Growth VP Service Class
TA JPMorgan Mid Cap Value Service Class		Transamerica JPMorgan Mid Cap Value VP Service Class
TA JPMorgan Tactical Allocation Service Class		Transamerica JPMorgan Tactical Allocation VP Service Class
TA Legg Mason Dynamic Allocation - Balanced Service Class		Transamerica Legg Mason Dynamic Allocation - Balanced VP Service Class
TA Legg Mason Dynamic Allocation - Growth Service Class		Transamerica Legg Mason Dynamic Allocation - Growth VP Service Class
TA Levin Large Cap Value Service Class		Transamerica Levin Large Cap Value VP Service Class
TA Madison Diversified Income Service Class		Transamerica Madison Diversified Income VP Service Class
TA Managed Risk - Balanced ETF Service Class		Transamerica Managed Risk - Balanced ETF VP Service Class
TA Managed Risk - Conservative ETF Service Class		Transamerica Managed Risk - Conservative ETF VP Service Class
TA Managed Risk - Growth ETF Service Class		Transamerica Managed Risk - Growth ETF VP Service Class
TA Market Participation Strategy Service Class		Transamerica Market Participation Strategy VP Service Class
TA Morgan Stanley Capital Growth Initial Class		Transamerica Morgan Stanley Capital Growth VP Initial Class
TA Morgan Stanley Capital Growth Service Class		Transamerica Morgan Stanley Capital Growth VP Service Class
TA Multi-Managed Balanced Initial Class		Transamerica Multi-Managed Balanced VP Initial Class
TA Multi-Managed Balanced Service Class		Transamerica Multi-Managed Balanced VP Service Class
TA Multi-Manager Alternative Strategies Service Class		Transamerica Multi-Manager Alt Strategies VP Service Class
TA PIMCO Tactical - Balanced Service Class		Transamerica PIMCO Tactical - Balanced VP Service Class
TA PIMCO Tactical - Conservative Service Class		Transamerica PIMCO Tactical - Conservative VP Service Class
TA PIMCO Tactical - Growth Service Class		Transamerica PIMCO Tactical - Growth VP Service Class
TA PIMCO Total Return Initial Class		Transamerica PIMCO Total Return VP Initial Class
TA PIMCO Total Return Service Class		Transamerica PIMCO Total Return VP Service Class
TA PineBridge Inflation Opportunities Service Class		Transamerica PineBridge Inflation Opportunities VP Service Class
TA ProFunds UltraBear Service Class (OAM)		Transamerica ProFunds UltraBear VP Service Class (OAM)
TA QS Investors Active Asset Allocation - Conservative Service Class		Transamerica QS Investors Active Asset Allocation - Conservative VP Service Class
TA QS Investors Active Asset Allocation - Moderate Service Class		Transamerica QS Investors Active Asset Allocation - Moderate VP Service Class
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		Transamerica QS Investors Active Asset Allocation - Moderate Growth VP Service Class

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

1. Organization (continued)

Subaccount Investment by Mutual Fund:


Subaccount		Mutual Fund
Transamerica Series Trust		Transamerica Series Trust
TA Small/Mid Cap Value Initial Class		Transamerica Small/Mid Cap Value VP Initial Class
TA Small/Mid Cap Value Service Class		Transamerica Small/Mid Cap Value VP Service Class
TA T. Rowe Price Small Cap Initial Class		Transamerica T. Rowe Price Small Cap VP Initial Class
TA T. Rowe Price Small Cap Service Class		Transamerica T. Rowe Price Small Cap VP Service Class
TA Torray Concentrated Growth Initial Class		Transamerica Torray Concentrated Growth VP Initial Class
TA Torray Concentrated Growth Service Class		Transamerica Torray Concentrated Growth VP Service Class
TA TS&W International Equity Initial Class		Transamerica TS&W International Equity VP Initial Class
TA TS&W International Equity Service Class		Transamerica TS&W International Equity VP Service Class
TA U.S. Equity Index Service Class		Transamerica U.S. Equity Index VP Service Class
TA WMC US Growth Initial Class		Transamerica WMC US Growth VP Initial Class
TA WMC US Growth Service Class		Transamerica WMC US Growth VP Service Class
Vanguard^® Variable Insurance Fund		Vanguard^® Variable Insurance Fund
Vanguard^® Equity Index		Vanguard^® Equity Index Portfolio
Vanguard^® International		Vanguard^® International Portfolio
Vanguard^® Mid-Cap Index		Vanguard^® Mid-Cap Index Portfolio
Vanguard^® Real Estate Index		Vanguard^® Real Estate Index Portfolio
Vanguard^® Short-Term Investment Grade		Vanguard^® Short-Term Investment Grade Portfolio
Vanguard^® Total Bond Market Index		Vanguard^® Total Bond Market Index Portfolio
Voya Investors Trust		Voya Investors Trust
Voya Global Perspectives Class S Shares		Voya Global Perspectives Portfolio Class S Shares
Voya Large Cap Value Class S Shares		Voya Large Cap Value Portfolio Class S Shares
Voya Strategic Allocation Portfolios, Inc.		Voya Strategic Allocation Portfolios, Inc.
Voya Strategic Allocation Conservative Class S Shares		Voya Strategic Allocation Conservative Portfolio Class S Shares
Voya Strategic Allocation Moderate Class S Shares		Voya Strategic Allocation Moderate Portfolio Class S Shares
Wanger Advisors Trust		Wanger Advisors Trust
Wanger International		Wanger International
Wanger USA		Wanger USA

Each period reported on reflects a full twelve month period except as follows:


Subaccount		Inception Date
TA 60/40 Allocation Service Class		May 1, 2018
TA Levin Large Cap Value Service Class		May 1, 2018
TA Madison Diversified Income Service Class		June 1, 2017
TA International Equity Index Service Class		May 1, 2017
TA U.S. Equity Index Service Class		May 1, 2017
TA BlackRock Equity Smart Beta 100 Service Class		March 21, 2016
TA BlackRock Smart Beta 50 Service Class		March 21, 2016
TA BlackRock Smart Beta 75 Service Class		March 21, 2016
TA American Funds Managed Risk - Balanced Service Class		May 1, 2015
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		May 1, 2015
TA BlackRock Global Allocation Managed Risk - Growth Service Class		May 1, 2015
Voya Global Perspectives Class S Shares		May 1, 2015

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

1. Organization (continued)

Each period reported on reflects a full twelve month period except as follows:


Subaccount		Inception Date
Voya Large Cap Value Class S Shares		May 1, 2015
Voya Strategic Allocation Conservative Class S Shares		May 1, 2015
Voya Strategic Allocation Moderate Class S Shares		May 1, 2015

The following subaccount name changes were made effective during the fiscal year ended December 31, 2018:


Subaccount		Formerly
TA BlackRock Global Real Estate Securities Initial Class		TA Clarion Global Real Estate Securities Initial Class
TA BlackRock Global Real Estate Securities Service Class		TA Clarion Global Real Estate Securities Service Class
TA BlackRock Government Money Market Initial Class		TA Aegon Government Money Market Initial Class
TA BlackRock Government Money Market Service Class		TA Aegon Government Money Market Service Class
TA BlackRock Smart Beta 40 Initial Class		TA AB Dynamic Allocation Initial Class
TA BlackRock Smart Beta 40 Service Class		TA AB Dynamic Allocation Service Class
TA Greystone International Growth Initial Class		TA MFS International Equity Initial Class
TA Greystone International Growth Service Class		TA MFS International Equity Service Class
TA JPMorgan Asset Allocation - Conservative Initial Class		TA Asset Allocation - Conservative Initial Class
TA JPMorgan Asset Allocation - Conservative Service Class		TA Asset Allocation - Conservative Service Class
TA JPMorgan Asset Allocation - Growth Initial Class		TA Asset Allocation - Growth Initial Class
TA JPMorgan Asset Allocation - Growth Service Class		TA Asset Allocation - Growth Service Class
TA JPMorgan Asset Allocation - Moderate Initial Class		TA Asset Allocation - Moderate Initial Class
TA JPMorgan Asset Allocation - Moderate Service Class		TA Asset Allocation - Moderate Service Class
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		TA Asset Allocation - Moderate Growth Initial Class
TA JPMorgan Asset Allocation - Moderate Growth Service Class		TA Asset Allocation - Moderate Growth Service Class
TA JPMorgan International Moderate Growth Service Class		TA International Moderate Growth Service Class
Vanguard^® Real Estate Index		Vanguard^® REIT Index

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

2. Summary of Significant Accounting Policies

Investments

Dividend Income

Dividends received from the Mutual Fund investments are reinvested to purchase additional mutual fund shares.

Fair Value Measurements and Fair Value Hierarchy

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.

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.

There were no transfers between Level 1, Level 2 and Level 3 during the year ended December 31, 2018.

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

3. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2018 were as follows:


Subaccount	Purchases		Sales
AB Balanced Wealth Strategy Class B Shares	$	2,408,105	$	1,367,759
AB Growth and Income Class B Shares		5,340,127		3,654,501
AB Large Cap Growth Class B Shares		89,467		122,006
American Funds - Asset Allocation Class 2 Shares		21,396,417		15,181,373
American Funds - Bond Class 2 Shares		2,444,229		2,888,621
American Funds - Growth Class 2 Shares		19,304,395		14,345,452
American Funds - Growth-Income Class 2 Shares		14,251,260		13,258,500
American Funds - International Class 2 Shares		22,483,386		5,537,330
Fidelity^® VIP Balanced Service Class 2		11,404,974		6,120,461
Fidelity^® VIP Contrafund^® Initial Class		—		—
Fidelity^® VIP Contrafund^® Service Class 2		10,018,573		10,891,570
Fidelity^® VIP Equity-Income Service Class 2		94,511		262,505
Fidelity^® VIP Growth Service Class 2		185,726		139,965
Fidelity^® VIP Growth Opportunities Service Class 2		137		118
Fidelity^® VIP Mid Cap Initial Class		—		—
Fidelity^® VIP Mid Cap Service Class 2		8,675,325		18,081,000
Fidelity^® VIP Value Strategies Initial Class		1,439		175
Fidelity^® VIP Value Strategies Service Class 2		2,544,702		4,248,157
Franklin Founding Funds Allocation Class 4 Shares		167,809		839,277
Franklin Income Class 2 Shares		159,167		638,332
Franklin Mutual Shares Class 2 Shares		58,234		164,642
Franklin Templeton Foreign Class 2 Shares		58,793		339,658
Invesco V.I. American Franchise Series II Shares		13,560		12,370
Janus Henderson - Enterprise Service Shares		58,460		105,029
Janus Henderson - Global Research Service Shares		16,867		80,411
Janus Henderson - Mid Cap Value Service Shares		236		125
JPMorgan Insurance Trust Core Bond Class 1 Shares		11,320		46,187
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares		4,635		2,313
JPMorgan Insurance Trust Small Cap Core Class 1 Shares		628		287
JPMorgan Insurance Trust U.S. Equity Class 1 Shares		10,837		2,224
MFS^® New Discovery Service Class		287,157		314,568
MFS^® Total Return Service Class		79,189		288,486
State Street Total Return V.I.S. Class 3 Shares		3,259,421		492,827
TA 60/40 Allocation Service Class		651,611		35,958
TA Aegon High Yield Bond Initial Class		15,995		2,605
TA Aegon High Yield Bond Service Class		1,588,932		1,867,232

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

3. Investments (continued)


Subaccount	Purchases		Sales
TA Aegon U.S. Government Securities Initial Class	$	7,940	$	24,019
TA Aegon U.S. Government Securities Service Class		46,042,035		15,690,989
TA American Funds Managed Risk - Balanced Service Class		17,084,043		5,222,672
TA Barrow Hanley Dividend Focused Initial Class		138,769		393,840
TA Barrow Hanley Dividend Focused Service Class		3,122,920		3,397,893
TA BlackRock Equity Smart Beta 100 Service Class		1,263,117		483,616
TA BlackRock Global Allocation Service Class		7,968,592		12,988,837
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		4,273,527		751,030
TA BlackRock Global Allocation Managed Risk - Growth Service Class		1,693,505		1,169,734
TA BlackRock Global Real Estate Securities Initial Class		1,893		1,405
TA BlackRock Global Real Estate Securities Service Class		936,529		1,181,830
TA BlackRock Government Money Market Initial Class		92,075		25,596
TA BlackRock Government Money Market Service Class		44,405,793		46,447,994
TA BlackRock Smart Beta 40 Initial Class		1,463		1,727
TA BlackRock Smart Beta 40 Service Class		2,280,080		3,350,469
TA BlackRock Smart Beta 50 Service Class		6,834,711		1,086,598
TA BlackRock Smart Beta 75 Service Class		3,857,132		1,372,273
TA BlackRock Tactical Allocation Service Class		9,420,273		12,422,710
TA Greystone International Growth Initial Class		2,363		7,696
TA Greystone International Growth Service Class		2,079,065		16,036,657
TA International Equity Index Service Class		2,206,101		1,037,787
TA Janus Balanced Service Class		17,116,125		12,369,484
TA Janus Mid-Cap Growth Initial Class		70,417		10,404
TA Janus Mid-Cap Growth Service Class		11,570,268		1,593,346
TA Jennison Growth Initial Class		324,525		139,918
TA Jennison Growth Service Class		6,486,226		5,032,082
TA JPMorgan Asset Allocation - Conservative Initial Class		1		17,607
TA JPMorgan Asset Allocation - Conservative Service Class		9,366,351		8,340,491
TA JPMorgan Asset Allocation - Growth Initial Class		3,195		526
TA JPMorgan Asset Allocation - Growth Service Class		2,041,594		2,063,936
TA JPMorgan Asset Allocation - Moderate Initial Class		44,916		44,613
TA JPMorgan Asset Allocation - Moderate Service Class		54,707,642		38,589,809
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		31,689		5,906
TA JPMorgan Asset Allocation - Moderate Growth Service Class		31,250,098		30,142,140
TA JPMorgan Core Bond Service Class		5,793,673		4,779,108
TA JPMorgan Enhanced Index Initial Class		39,825		43,760

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

3. Investments (continued)


Subaccount	Purchases		Sales
TA JPMorgan Enhanced Index Service Class	$	1,848,984	$	2,396,235
TA JPMorgan International Moderate Growth Service Class		7,701,183		8,766,112
TA JPMorgan Mid Cap Value Service Class		3,447,986		7,006,831
TA JPMorgan Tactical Allocation Service Class		12,772,265		13,911,781
TA Legg Mason Dynamic Allocation - Balanced Service Class		5,026,679		14,168,402
TA Legg Mason Dynamic Allocation - Growth Service Class		3,628,665		8,094,271
TA Levin Large Cap Value Service Class		155,239		46,343
TA Madison Diversified Income Service Class		1,918,020		978,647
TA Managed Risk - Balanced ETF Service Class		32,814,062		52,812,650
TA Managed Risk - Conservative ETF Service Class		7,358,535		14,313,081
TA Managed Risk - Growth ETF Service Class		15,018,571		49,519,653
TA Market Participation Strategy Service Class		4,440,020		5,985,579
TA Morgan Stanley Capital Growth Initial Class		24,237		2,315
TA Morgan Stanley Capital Growth Service Class		4,452,054		2,086,447
TA Multi-Managed Balanced Initial Class		1,684		438
TA Multi-Managed Balanced Service Class		17,930,939		14,510,442
TA Multi-Manager Alternative Strategies Service Class		122,728		90,877
TA PIMCO Tactical - Balanced Service Class		5,449,835		4,678,483
TA PIMCO Tactical - Conservative Service Class		3,953,970		5,024,507
TA PIMCO Tactical - Growth Service Class		7,625,650		3,874,028
TA PIMCO Total Return Initial Class		10,866		17,083
TA PIMCO Total Return Service Class		9,949,196		12,862,784
TA PineBridge Inflation Opportunities Service Class		3,189,411		2,925,157
TA ProFunds UltraBear Service Class (OAM)		1,300,894		313,169
TA QS Investors Active Asset Allocation - Conservative Service Class		1,729,345		4,824,395
TA QS Investors Active Asset Allocation - Moderate Service Class		8,102,485		13,455,808
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		3,865,505		9,189,779
TA Small/Mid Cap Value Initial Class		347,399		179,138
TA Small/Mid Cap Value Service Class		3,374,127		2,135,402
TA T. Rowe Price Small Cap Initial Class		54,282		78,870
TA T. Rowe Price Small Cap Service Class		7,111,496		10,385,649
TA Torray Concentrated Growth Initial Class		247,007		202,247
TA Torray Concentrated Growth Service Class		516,056		764,010
TA TS&W International Equity Initial Class		16,971		50,362
TA TS&W International Equity Service Class		739,533		917,506
TA U.S. Equity Index Service Class		5,970,871		656,812

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

3. Investments (continued)


Subaccount	Purchases		Sales
TA WMC US Growth Initial Class	$	453,921	$	555,036
TA WMC US Growth Service Class		4,993,623		5,007,948
Vanguard^® Equity Index		32,597		8,036
Vanguard^® International		21,477		15,054
Vanguard^® Mid-Cap Index		—		—
Vanguard^® Real Estate Index		—		—
Vanguard^® Short-Term Investment Grade		—		—
Vanguard^® Total Bond Market Index		8,772		2,832
Voya Global Perspectives Class S Shares		—		—
Voya Large Cap Value Class S Shares		—		—
Voya Strategic Allocation Conservative Class S Shares		—		—
Voya Strategic Allocation Moderate Class S Shares		—		—
Wanger International		—		—
Wanger USA		—		—

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Units

The change in units outstanding were as follows:


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
AB Balanced Wealth Strategy Class B Shares		178,407		(350,678	)		(172,271	)		173,798		(433,664	)		(259,866	)
AB Growth and Income Class B Shares		233,535		(830,761	)		(597,226	)		2,097,926		(1,297,153	)		800,773
AB Large Cap Growth Class B Shares		13,782		(40,103	)		(26,321	)		—		(51,792	)		(51,792	)
American Funds - Asset Allocation Class 2 Shares		1,614,178		(5,606,422	)		(3,992,244	)		2,178,025		(3,900,208	)		(1,722,183	)
American Funds - Bond Class 2 Shares		325,847		(875,778	)		(549,931	)		469,597		(1,004,510	)		(534,913	)
American Funds - Growth Class 2 Shares		955,977		(1,190,157	)		(234,180	)		1,458,292		(2,175,110	)		(716,818	)
American Funds - Growth-Income Class 2 Shares		698,512		(3,530,920	)		(2,832,408	)		589,759		(653,702	)		(63,943	)
American Funds - International Class 2 Shares		8,712,923		(1,105,133	)		7,607,790			723,579		(706,350	)		17,229
Fidelity^® VIP Balanced Service Class 2		1,020,382		(1,810,999	)		(790,617	)		606,955		(1,237,028	)		(630,073	)
Fidelity^® VIP Contrafund^® Initial Class		—		—			—			—		—			—
Fidelity^® VIP Contrafund^® Service Class 2		465,354		(1,332,558	)		(867,204	)		704,285		(1,107,122	)		(402,837	)
Fidelity^® VIP Equity-Income Service Class 2		20,820		(110,163	)		(89,343	)		—		(80,905	)		(80,905	)
Fidelity^® VIP Growth Service Class 2		14,325		(44,490	)		(30,165	)		—		(16,328	)		(16,328	)
Fidelity^® VIP Growth Opportunities Service Class 2		—		(44	)		(44	)		—		(45	)		(45	)
Fidelity^® VIP Mid Cap Initial Class		—		—			—			—		—			—
Fidelity^® VIP Mid Cap Service Class 2		427,589		(2,711,974	)		(2,284,385	)		632,215		(866,872	)		(234,657	)
Fidelity^® VIP Value Strategies Initial Class		—		(1	)		(1	)		—		—			—
Fidelity^® VIP Value Strategies Service Class 2		174,586		(628,486	)		(453,900	)		219,041		(379,490	)		(160,449	)
Franklin Founding Funds Allocation Class 4 Shares		2,000		(379,820	)		(377,820	)		—		(322,394	)		(322,394	)
Franklin Income Class 2 Shares		7,388		(404,763	)		(397,375	)		—		(297,199	)		(297,199	)
Franklin Mutual Shares Class 2 Shares		15,905		(113,686	)		(97,781	)		—		(84,487	)		(84,487	)
Franklin Templeton Foreign Class 2 Shares		16,796		(297,554	)		(280,758	)		—		(182,314	)		(182,314	)
Invesco V.I. American Franchise Series II Shares		—		(4,587	)		(4,587	)		—		(16,086	)		(16,086	)
Janus Henderson - Enterprise Service Shares		9,296		(22,362	)		(13,066	)		—		(2,721	)		(2,721	)
Janus Henderson - Global Research Service Shares		6,204		(40,130	)		(33,926	)		—		(57,967	)		(57,967	)
Janus Henderson - Mid Cap Value Service Shares		—		(35	)		(35	)		—		(35	)		(35	)
JPMorgan Insurance Trust Core Bond Class 1 Shares		—		(31,621	)		(31,621	)		—		(43,300	)		(43,300	)

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Units (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares		—		—			—			—		—			—
JPMorgan Insurance Trust Small Cap Core Class 1 Shares		—		(44	)		(44	)		—		(43	)		(43	)
JPMorgan Insurance Trust U.S. Equity Class 1 Shares		—		(311	)		(311	)		—		(309	)		(309	)
MFS^® New Discovery Service Class		10,112		(89,081	)		(78,969	)		—		(114,113	)		(114,113	)
MFS^® Total Return Service Class		4,085		(147,622	)		(143,537	)		—		(364,363	)		(364,363	)
State Street Total Return V.I.S. Class 3 Shares		171,522		(171,843	)		(321	)		263,795		(212,859	)		50,936
TA 60/40 Allocation Service Class		64,567		(3,332	)		61,235			—		—			—
TA Aegon High Yield Bond Initial Class		3,175		(407	)		2,768			25,115		(13,931	)		11,184
TA Aegon High Yield Bond Service Class		201,037		(455,645	)		(254,608	)		178,935		(313,528	)		(134,593	)
TA Aegon U.S. Government Securities Initial Class		—		(10,396	)		(10,396	)		28,799		(13,914	)		14,885
TA Aegon U.S. Government Securities Service Class		6,504,421		(3,857,976	)		2,646,445			1,467,007		(10,588,227	)		(9,121,220	)
TA American Funds Managed Risk - Balanced Service Class		1,343,044		(415,900	)		927,144			2,031,894		(220,288	)		1,811,606
TA Barrow Hanley Dividend Focused Initial Class		7,328		(67,469	)		(60,141	)		187,419		(110,017	)		77,402
TA Barrow Hanley Dividend Focused Service Class		511,815		(851,637	)		(339,822	)		521,960		(596,325	)		(74,365	)
TA BlackRock Equity Smart Beta 100 Service Class		59,804		(23,056	)		36,748			1,557,042		(25,773	)		1,531,269
TA BlackRock Global Allocation Service Class		894,528		(5,386,186	)		(4,491,658	)		1,612,106		(4,427,699	)		(2,815,593	)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		411,417		(63,339	)		348,078			269,037		(131,438	)		137,599
TA BlackRock Global Allocation Managed Risk - Growth Service Class		143,646		(100,793	)		42,853			266,473		(134,421	)		132,052
TA BlackRock Global Real Estate Securities Initial Class		—		(425	)		(425	)		—		(521	)		(521	)
TA BlackRock Global Real Estate Securities Service Class		142,739		(289,465	)		(146,726	)		155,827		(391,650	)		(235,823	)
TA BlackRock Government Money Market Initial Class		67,198		(17,163	)		50,035			73,359		(5,750	)		67,609
TA BlackRock Government Money Market Service Class		11,561,707		(11,554,453	)		7,254			8,479,367		(12,899,066	)		(4,419,699	)
TA BlackRock Smart Beta 40 Initial Class		149		(503	)		(354	)		317		(239	)		78
TA BlackRock Smart Beta 40 Service Class		217,803		(1,393,269	)		(1,175,466	)		529,680		(1,711,563	)		(1,181,883	)
TA BlackRock Smart Beta 50 Service Class		597,770		(86,989	)		510,781			475,314		(104,162	)		371,152
TA BlackRock Smart Beta 75 Service Class		307,884		(108,641	)		199,243			992,856		(15,568	)		977,288
TA BlackRock Tactical Allocation Service Class		605,471		(3,317,723	)		(2,712,252	)		1,172,709		(3,718,803	)		(2,546,094	)

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Units (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA Greystone International Growth Initial Class		269		(4,253	)		(3,984	)		26,271		(4,661	)		21,610
TA Greystone International Growth Service Class		308,024		(5,517,347	)		(5,209,323	)		2,162,926		(454,416	)		1,708,510
TA International Equity Index Service Class		202,315		(96,560	)		105,755			72,761		(37,908	)		34,853
TA Janus Balanced Service Class		1,582,535		(2,144,845	)		(562,310	)		2,280,611		(2,581,746	)		(301,135	)
TA Janus Mid-Cap Growth Initial Class		4,190		(740	)		3,450			—		(27,766	)		(27,766	)
TA Janus Mid-Cap Growth Service Class		2,754,006		(273,066	)		2,480,940			134,024		(136,786	)		(2,762	)
TA Jennison Growth Initial Class		5,062		(24,321	)		(19,259	)		5,372		(103,246	)		(97,874	)
TA Jennison Growth Service Class		444,197		(903,201	)		(459,004	)		1,735,808		(1,587,142	)		148,666
TA JPMorgan Asset Allocation - Conservative Initial Class		—		(9,676	)		(9,676	)		—		—			—
TA JPMorgan Asset Allocation - Conservative Service Class		638,836		(2,581,635	)		(1,942,799	)		1,860,250		(3,448,185	)		(1,587,935	)
TA JPMorgan Asset Allocation - Growth Initial Class		—		—			—			—		(13,820	)		(13,820	)
TA JPMorgan Asset Allocation - Growth Service Class		104,335		(595,476	)		(491,141	)		182,159		(751,405	)		(569,246	)
TA JPMorgan Asset Allocation - Moderate Initial Class		—		(17,531	)		(17,531	)		—		(155,190	)		(155,190	)
TA JPMorgan Asset Allocation - Moderate Service Class		3,913,324		(14,067,757	)		(10,154,433	)		2,818,360		(14,950,615	)		(12,132,255	)
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		—		(32	)		(32	)		—		(4,770	)		(4,770	)
TA JPMorgan Asset Allocation - Moderate Growth Service Class		2,760,156		(9,006,121	)		(6,245,965	)		4,670,462		(8,009,864	)		(3,339,402	)
TA JPMorgan Core Bond Service Class		1,403,385		(1,402,317	)		1,068			1,416,240		(1,143,817	)		272,423
TA JPMorgan Enhanced Index Initial Class		—		(9,429	)		(9,429	)		7,236		(9,483	)		(2,247	)
TA JPMorgan Enhanced Index Service Class		178,748		(156,411	)		22,337			207,747		(64,595	)		143,152
TA JPMorgan International Moderate Growth Service Class		2,040,276		(4,193,121	)		(2,152,845	)		1,635,087		(2,788,390	)		(1,153,303	)
TA JPMorgan Mid Cap Value Service Class		226,933		(863,951	)		(637,018	)		383,393		(3,575,905	)		(3,192,512	)
TA JPMorgan Tactical Allocation Service Class		1,049,868		(3,820,815	)		(2,770,947	)		1,586,265		(3,732,508	)		(2,146,243	)
TA Legg Mason Dynamic Allocation - Balanced Service Class		502,496		(2,450,424	)		(1,947,928	)		1,028,647		(4,885,108	)		(3,856,461	)
TA Legg Mason Dynamic Allocation - Growth Service Class		686,331		(1,723,487	)		(1,037,156	)		460,320		(3,732,521	)		(3,272,201	)
TA Levin Large Cap Value Service Class		14,949		(4,366	)		10,583			—		—			—
TA Madison Diversified Income Service Class		155,187		(81,187	)		74,000			118,605		(17,985	)		100,620
TA Managed Risk - Balanced ETF Service Class		2,875,044		(15,957,893	)		(13,082,849	)		6,042,835		(19,249,156	)		(13,206,321	)

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Units (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA Managed Risk - Conservative ETF Service Class		593,336		(3,875,568	)		(3,282,232	)		1,998,635		(5,516,859	)		(3,518,224	)
TA Managed Risk - Growth ETF Service Class		1,630,623		(16,427,649	)		(14,797,026	)		3,922,740		(18,834,648	)		(14,911,908	)
TA Market Participation Strategy Service Class		459,070		(1,269,613	)		(810,543	)		187,237		(1,401,219	)		(1,213,982	)
TA Morgan Stanley Capital Growth Initial Class		1,865		(252	)		1,613			7,681		(9,534	)		(1,853	)
TA Morgan Stanley Capital Growth Service Class		222,579		(252,196	)		(29,617	)		119,877		(113,004	)		6,873
TA Multi-Managed Balanced Initial Class		—		—			—			—		—			—
TA Multi-Managed Balanced Service Class		1,029,786		(3,375,485	)		(2,345,699	)		8,336,276		(1,677,462	)		6,658,814
TA Multi-Manager Alternative Strategies Service Class		11,958		(8,723	)		3,235			7,835		(1,478	)		6,357
TA PIMCO Tactical - Balanced Service Class		367,429		(1,704,524	)		(1,337,095	)		929,968		(1,941,017	)		(1,011,049	)
TA PIMCO Tactical - Conservative Service Class		186,335		(954,751	)		(768,416	)		845,156		(1,704,335	)		(859,179	)
TA PIMCO Tactical - Growth Service Class		513,316		(1,232,126	)		(718,810	)		813,396		(856,255	)		(42,859	)
TA PIMCO Total Return Initial Class		—		(7,651	)		(7,651	)		46,659		(11,076	)		35,583
TA PIMCO Total Return Service Class		1,981,853		(5,024,295	)		(3,042,442	)		2,300,960		(5,899,656	)		(3,598,696	)
TA PineBridge Inflation Opportunities Service Class		473,162		(1,622,119	)		(1,148,957	)		738,699		(1,507,835	)		(769,136	)
TA ProFunds UltraBear Service Class (OAM)		31,101,854		(7,663,632	)		23,438,222			2,984,080		(9,864,219	)		(6,880,139	)
TA QS Investors Active Asset Allocation - Conservative Service Class		130,614		(1,319,318	)		(1,188,704	)		540,748		(1,959,146	)		(1,418,398	)
TA QS Investors Active Asset Allocation - Moderate Service Class		822,712		(3,192,449	)		(2,369,737	)		703,653		(3,610,682	)		(2,907,029	)
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		452,183		(2,332,303	)		(1,880,120	)		836,529		(2,283,224	)		(1,446,695	)
TA Small/Mid Cap Value Initial Class		216		(8,685	)		(8,469	)		—		(25,219	)		(25,219	)
TA Small/Mid Cap Value Service Class		265,758		(462,047	)		(196,289	)		439,251		(438,391	)		860
TA T. Rowe Price Small Cap Initial Class		3,979		(11,757	)		(7,778	)		12,075		(2,337	)		9,738
TA T. Rowe Price Small Cap Service Class		400,824		(1,125,526	)		(724,702	)		574,749		(766,074	)		(191,325	)
TA Torray Concentrated Growth Initial Class		20,983		(23,920	)		(2,937	)		3,857		(18,989	)		(15,132	)
TA Torray Concentrated Growth Service Class		45,597		(117,067	)		(71,470	)		40,669		(133,170	)		(92,501	)
TA TS&W International Equity Initial Class		74		(14,272	)		(14,198	)		12,995		(32,562	)		(19,567	)
TA TS&W International Equity Service Class		102,759		(177,317	)		(74,558	)		104,805		(36,263	)		68,542

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Units (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA U.S. Equity Index Service Class		513,948		(52,942	)		461,006			82,073		(211	)		81,862
TA WMC US Growth Initial Class		83,183		(246,997	)		(163,814	)		20,349		(138,423	)		(118,074	)
TA WMC US Growth Service Class		292,725		(924,871	)		(632,146	)		549,849		(710,467	)		(160,618	)
Vanguard^® Equity Index		—		—			—			—		—			—
Vanguard^® International		—		(612	)		(612	)		—		(32	)		(32	)
Vanguard^® Mid-Cap Index		—		—			—			—		—			—
Vanguard^® Real Estate Index		—		—			—			—		—			—
Vanguard^® Short-Term Investment Grade		—		—			—			—		—			—
Vanguard^® Total Bond Market Index		—		—			—			—		—			—
Voya Global Perspectives Class S Shares		—		—			—			—		—			—
Voya Large Cap Value Class S Shares		—		—			—			—		—			—
Voya Strategic Allocation Conservative Class S Shares		—		—			—			—		—			—
Voya Strategic Allocation Moderate Class S Shares		—		—			—			—		—			—
Wanger International		—		—			—			—		—			—
Wanger USA		—		—			—			—		—			—

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Unit Dollars (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
AB Balanced Wealth Strategy Class B Shares	$	1,949,402	$	(1,292,852	)	$	656,550		$	759,537	$	(818,405	)	$	(58,868	)
AB Growth and Income Class B Shares		2,284,325		(3,309,901	)		(1,025,576	)		8,472,984		(4,629,619	)		3,843,365
AB Large Cap Growth Class B Shares		38,362		(115,934	)		(77,572	)		—		(127,220	)		(127,220	)
American Funds - Asset Allocation Class 2 Shares		18,225,904		(14,352,753	)		3,873,151			10,099,596		(8,419,910	)		1,679,686
American Funds - Bond Class 2 Shares		2,089,064		(2,669,646	)		(580,582	)		2,841,453		(2,407,365	)		434,088
American Funds - Growth Class 2 Shares		14,563,406		(13,635,985	)		927,421			11,907,409		(7,657,675	)		4,249,734
American Funds - Growth-Income Class 2 Shares		11,860,488		(12,785,123	)		(924,635	)		5,913,566		(3,413,616	)		2,499,950
American Funds - International Class 2 Shares		21,181,907		(5,186,985	)		15,994,922			4,258,759		(2,125,571	)		2,133,188
Fidelity^® VIP Balanced Service Class 2		9,786,668		(5,778,865	)		4,007,803			2,662,844		(2,417,273	)		245,571
Fidelity^® VIP Contrafund^® Initial Class		—		—			—			—		—			—
Fidelity^® VIP Contrafund^® Service Class 2		5,964,809		(10,339,002	)		(4,374,193	)		7,782,093		(4,542,869	)		3,239,224
Fidelity^® VIP Equity-Income Service Class 2		47,977		(252,991	)		(205,014	)		—		(171,094	)		(171,094	)
Fidelity^® VIP Growth Service Class 2		38,303		(125,050	)		(86,747	)		—		(36,872	)		(36,872	)
Fidelity^® VIP Growth Opportunities Service Class 2		—		(82	)		(82	)		—		(63	)		(63	)
Fidelity^® VIP Mid Cap Initial Class		—		—			—			—		—			—
Fidelity^® VIP Mid Cap Service Class 2		5,496,452		(17,683,661	)		(12,187,209	)		6,705,485		(3,882,391	)		2,823,094
Fidelity^® VIP Value Strategies Initial Class		—		(4	)		(4	)		—		(5	)		(5	)
Fidelity^® VIP Value Strategies Service Class 2		1,965,651		(4,096,610	)		(2,130,959	)		1,814,968		(1,690,632	)		124,336
Franklin Founding Funds Allocation Class 4 Shares		4,114		(790,515	)		(786,401	)		—		(655,029	)		(655,029	)
Franklin Income Class 2 Shares		10,752		(594,154	)		(583,402	)		—		(427,348	)		(427,348	)
Franklin Mutual Shares Class 2 Shares		21,829		(155,229	)		(133,400	)		—		(118,058	)		(118,058	)
Franklin Templeton Foreign Class 2 Shares		18,209		(317,790	)		(299,581	)		—		(195,340	)		(195,340	)
Invesco V.I. American Franchise Series II Shares		—		(9,237	)		(9,237	)		—		(27,517	)		(27,517	)
Janus Henderson - Enterprise Service Shares		42,227		(100,375	)		(58,148	)		—		(7,136	)		(7,136	)
Janus Henderson - Global Research Service Shares		13,222		(74,497	)		(61,275	)		—		(99,306	)		(99,306	)
Janus Henderson - Mid Cap Value Service Shares		—		(92	)		(92	)		—		(83	)		(83	)
JPMorgan Insurance Trust Core Bond Class 1 Shares		—		(39,877	)		(39,877	)		—		(55,727	)		(55,727	)

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Unit Dollars (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares	$	—	$	1		$	1		$	—	$	(1	)	$	(1	)
JPMorgan Insurance Trust Small Cap Core Class 1 Shares		—		(158	)		(158	)		—		(150	)		(150	)
JPMorgan Insurance Trust U.S. Equity Class 1 Shares		—		(1,080	)		(1,080	)		—		(961	)		(961	)
MFS^® New Discovery Service Class		31,353		(288,401	)		(257,048	)		—		(344,090	)		(344,090	)
MFS^® Total Return Service Class		8,701		(272,635	)		(263,934	)		—		(718,711	)		(718,711	)
State Street Total Return V.I.S. Class 3 Shares		2,075,647		(427,008	)		1,648,639			1,358,295		(389,341	)		968,954
TA 60/40 Allocation Service Class		651,554		(33,996	)		617,558			—		—			—
TA Aegon High Yield Bond Initial Class		7,334		(941	)		6,393			57,975		(32,336	)		25,639
TA Aegon High Yield Bond Service Class		1,182,296		(1,783,132	)		(600,836	)		1,289,774		(1,058,454	)		231,320
TA Aegon U.S. Government Securities Initial Class		—		(20,356	)		(20,356	)		57,674		(27,660	)		30,014
TA Aegon U.S. Government Securities Service Class		45,479,703		(15,349,476	)		30,130,227			7,986,069		(52,135,039	)		(44,148,970	)
TA American Funds Managed Risk - Balanced Service Class		15,015,876		(4,674,950	)		10,340,926			21,490,070		(2,379,240	)		19,110,830
TA Barrow Hanley Dividend Focused Initial Class		63,683		(345,328	)		(281,645	)		522,975		(292,374	)		230,601
TA Barrow Hanley Dividend Focused Service Class		2,704,181		(3,085,650	)		(381,469	)		3,024,117		(2,031,098	)		993,019
TA BlackRock Equity Smart Beta 100 Service Class		770,489		(291,675	)		478,814			17,649,123		(290,180	)		17,358,943
TA BlackRock Global Allocation Service Class		6,606,992		(12,188,520	)		(5,581,528	)		12,195,148		(9,374,244	)		2,820,904
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		4,179,377		(644,577	)		3,534,800			2,661,887		(1,269,415	)		1,392,472
TA BlackRock Global Allocation Managed Risk - Growth Service Class		1,495,992		(1,051,146	)		444,846			2,608,668		(1,294,099	)		1,314,569
TA BlackRock Global Real Estate Securities Initial Class		—		(1,105	)		(1,105	)		—		(1,444	)		(1,444	)
TA BlackRock Global Real Estate Securities Service Class		493,190		(1,108,100	)		(614,910	)		838,289		(1,003,607	)		(165,318	)
TA BlackRock Government Money Market Initial Class		87,987		(22,496	)		65,491			96,661		(7,588	)		89,073
TA BlackRock Government Money Market Service Class		44,240,163		(46,081,276	)		(1,841,113	)		27,129,446		(40,667,118	)		(13,537,672	)
TA BlackRock Smart Beta 40 Initial Class		261		(858	)		(597	)		557		(419	)		138
TA BlackRock Smart Beta 40 Service Class		1,960,367		(3,084,546	)		(1,124,179	)		2,407,449		(4,206,643	)		(1,799,194	)
TA BlackRock Smart Beta 50 Service Class		6,704,404		(974,404	)		5,730,000			5,022,106		(1,103,513	)		3,918,593
TA BlackRock Smart Beta 75 Service Class		3,669,375		(1,237,241	)		2,432,134			11,007,040		(173,896	)		10,833,144

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Unit Dollars (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
TA BlackRock Tactical Allocation Service Class	$	3,915,969	$	(11,124,562	)	$	(7,208,593	)	$	7,910,929	$	(10,646,169	)	$	(2,735,240	)
TA Greystone International Growth Initial Class		473		(6,202	)		(5,729	)		41,931		(7,692	)		34,239
TA Greystone International Growth Service Class		1,972,299		(15,816,171	)		(13,843,872	)		7,500,723		(1,341,483	)		6,159,240
TA International Equity Index Service Class		2,199,889		(1,022,420	)		1,177,469			753,122		(392,694	)		360,428
TA Janus Balanced Service Class		13,826,278		(11,336,124	)		2,490,154			14,242,859		(6,932,311	)		7,310,548
TA Janus Mid-Cap Growth Initial Class		67,193		(10,066	)		57,127			—		(41,035	)		(41,035	)
TA Janus Mid-Cap Growth Service Class		10,927,850		(1,462,153	)		9,465,697			966,087		(599,626	)		366,461
TA Jennison Growth Initial Class		114,062		(114,345	)		(283	)		59,074		(203,945	)		(144,871	)
TA Jennison Growth Service Class		3,586,011		(4,679,443	)		(1,093,432	)		7,512,691		(5,858,842	)		1,653,849
TA JPMorgan Asset Allocation - Conservative Initial Class		—		(17,575	)		(17,575	)		—		—			—
TA JPMorgan Asset Allocation - Conservative Service Class		5,573,159		(7,490,203	)		(1,917,044	)		9,200,613		(9,006,414	)		194,199
TA JPMorgan Asset Allocation - Growth Initial Class		—		(1	)		(1	)		—		(27,519	)		(27,519	)
TA JPMorgan Asset Allocation - Growth Service Class		1,316,284		(1,949,758	)		(633,474	)		1,203,419		(1,890,322	)		(686,903	)
TA JPMorgan Asset Allocation - Moderate Initial Class		—		(34,981	)		(34,981	)		—		(302,823	)		(302,823	)
TA JPMorgan Asset Allocation - Moderate Service Class		35,958,570		(35,153,724	)		804,846			15,918,317		(36,478,026	)		(20,559,709	)
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		—		(70	)		(70	)		—		(9,350	)		(9,350	)
TA JPMorgan Asset Allocation - Moderate Growth Service Class		17,920,165		(27,637,283	)		(9,717,118	)		28,344,866		(19,420,616	)		8,924,250
TA JPMorgan Core Bond Service Class		4,986,043		(4,428,451	)		557,592			5,629,923		(3,802,755	)		1,827,168
TA JPMorgan Enhanced Index Initial Class		—		(34,496	)		(34,496	)		22,510		(31,396	)		(8,886	)
TA JPMorgan Enhanced Index Service Class		1,531,352		(2,308,887	)		(777,535	)		1,924,073		(822,324	)		1,101,749
TA JPMorgan International Moderate Growth Service Class		6,284,165		(8,222,579	)		(1,938,414	)		6,136,719		(5,205,838	)		930,881
TA JPMorgan Mid Cap Value Service Class		2,939,151		(6,753,056	)		(3,813,905	)		3,758,762		(11,763,475	)		(8,004,713	)
TA JPMorgan Tactical Allocation Service Class		9,005,331		(12,975,219	)		(3,969,888	)		10,276,102		(14,190,939	)		(3,914,837	)
TA Legg Mason Dynamic Allocation - Balanced Service Class		3,903,876		(13,106,573	)		(9,202,697	)		7,721,393		(18,245,419	)		(10,524,026	)
TA Legg Mason Dynamic Allocation - Growth Service Class		2,977,749		(7,360,265	)		(4,382,516	)		3,370,686		(12,203,681	)		(8,832,995	)
TA Levin Large Cap Value Service Class		155,145		(45,974	)		109,171			—		—			—

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Unit Dollars (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
TA Madison Diversified Income Service Class	$	1,856,553	$	(957,814	)	$	898,739		$	1,271,788	$	(208,114	)	$	1,063,674
TA Managed Risk - Balanced ETF Service Class		25,942,401		(47,537,418	)		(21,595,017	)		31,640,173		(50,680,715	)		(19,040,542	)
TA Managed Risk - Conservative ETF Service Class		5,342,095		(13,261,520	)		(7,919,425	)		7,241,070		(13,818,395	)		(6,577,325	)
TA Managed Risk - Growth ETF Service Class		9,393,371		(44,800,662	)		(35,407,291	)		24,979,659		(42,247,413	)		(17,267,754	)
TA Market Participation Strategy Service Class		2,493,587		(5,551,482	)		(3,057,895	)		1,505,598		(4,065,205	)		(2,559,607	)
TA Morgan Stanley Capital Growth Initial Class		6,506		(883	)		5,623			21,689		(27,932	)		(6,243	)
TA Morgan Stanley Capital Growth Service Class		3,126,541		(1,990,478	)		1,136,063			1,386,767		(579,635	)		807,132
TA Multi-Managed Balanced Initial Class		—		1			1			—		(1	)		(1	)
TA Multi-Managed Balanced Service Class		11,106,005		(12,989,480	)		(1,883,475	)		45,884,338		(9,317,038	)		36,567,300
TA Multi-Manager Alternative Strategies Service Class		120,392		(87,491	)		32,901			77,680		(14,750	)		62,930
TA PIMCO Tactical - Balanced Service Class		1,748,065		(4,237,165	)		(2,489,100	)		2,780,926		(6,617,922	)		(3,836,996	)
TA PIMCO Tactical - Conservative Service Class		1,801,136		(4,739,212	)		(2,938,076	)		3,521,994		(4,917,296	)		(1,395,302	)
TA PIMCO Tactical - Growth Service Class		2,863,923		(3,438,845	)		(574,922	)		4,971,722		(2,721,442	)		2,250,280
TA PIMCO Total Return Initial Class		—		(12,357	)		(12,357	)		76,899		(18,356	)		58,543
TA PIMCO Total Return Service Class		7,974,434		(12,040,698	)		(4,066,264	)		10,306,388		(12,901,289	)		(2,594,901	)
TA PineBridge Inflation Opportunities Service Class		2,948,447		(2,739,051	)		209,396			2,742,597		(2,204,534	)		538,063
TA ProFunds UltraBear Service Class (OAM)		1,301,917		(305,384	)		996,533			133,584		(517,612	)		(384,028	)
TA QS Investors Active Asset Allocation - Conservative Service Class		1,366,652		(4,536,316	)		(3,169,664	)		2,343,228		(3,856,031	)		(1,512,803	)
TA QS Investors Active Asset Allocation - Moderate Service Class		6,872,899		(12,334,613	)		(5,461,714	)		4,171,082		(11,487,299	)		(7,316,217	)
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		3,211,307		(8,483,236	)		(5,271,929	)		3,580,250		(8,043,433	)		(4,463,183	)
TA Small/Mid Cap Value Initial Class		3,137		(136,524	)		(133,387	)		—		(330,412	)		(330,412	)
TA Small/Mid Cap Value Service Class		2,007,626		(1,963,557	)		44,069			2,282,118		(1,327,008	)		955,110
TA T. Rowe Price Small Cap Initial Class		35,207		(75,225	)		(40,018	)		50,612		(5,703	)		44,909
TA T. Rowe Price Small Cap Service Class		5,166,357		(9,880,027	)		(4,713,670	)		5,501,434		(3,866,453	)		1,634,981
TA Torray Concentrated Growth Initial Class		159,959		(179,762	)		(19,803	)		28,887		(123,109	)		(94,222	)

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Unit Dollars (continued)


	Year Ended December 31, 2018								Year Ended December 31, 2017
Subaccount	Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)			Units Purchased in Dollars		Units Redeemed and Transferred to/from in Dollars			Dollar Net Increase (Decrease)
TA Torray Concentrated Growth Service Class	$	376,916	$	(721,131	)	$	(344,215	)	$	366,741	$	(457,764	)	$	(91,023	)
TA TS&W International Equity Initial Class		188		(40,670	)		(40,482	)		30,521		(76,087	)		(45,566	)
TA TS&W International Equity Service Class		676,937		(870,727	)		(193,790	)		736,182		(198,288	)		537,894
TA U.S. Equity Index Service Class		5,957,181		(599,432	)		5,357,749			892,076		(2,335	)		889,741
TA WMC US Growth Initial Class		192,117		(513,869	)		(321,752	)		54,532		(218,238	)		(163,706	)
TA WMC US Growth Service Class		3,014,129		(4,691,261	)		(1,677,132	)		3,773,943		(2,405,506	)		1,368,437
Vanguard^® Equity Index		—		(1	)		(1	)		—		—			—
Vanguard^® International		—		(9,908	)		(9,908	)		—		(399	)		(399	)
Vanguard^® Mid-Cap Index		—		—			—			—		—			—
Vanguard^® Real Estate Index		—		—			—			—		—			—
Vanguard^® Short-Term Investment Grade		—		—			—			—		—			—
Vanguard^® Total Bond Market Index		—		(1	)		(1	)		—		—			—
Voya Global Perspectives Class S Shares		—		—			—			—		—			—
Voya Large Cap Value Class S Shares		—		—			—			—		—			—
Voya Strategic Allocation Conservative Class S Shares		—		—			—			—		—			—
Voya Strategic Allocation Moderate Class S Shares		—		—			—			—		—			—
Wanger International		—		—			—			—		—			—
Wanger USA		—		—			—			—		—			—

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
AB Balanced Wealth Strategy Class B Shares
12/31/2018		1,591,557	$	12.90	to	$	10.24	$	4,944,515		1.70	%		0.40	%	to	2.70	%		(6.79	)%	to	(8.88	)%
12/31/2017		1,763,828		13.84	to		11.24		4,712,679		1.78			0.40		to	2.70			14.88		to	12.59
12/31/2016		2,023,694		12.01	to		11.35		4,215,929		1.84			0.65		to	2.20			3.77		to	2.18
12/31/2015		2,341,162		11.58	to		11.11		4,557,024		2.04			0.65		to	2.20			0.64		to	(0.91	)
12/31/2014		2,304,500		11.51	to		11.21		4,312,479		2.49			0.65		to	2.20			6.42		to	4.78
AB Growth and Income Class B Shares
12/31/2018		5,713,960		15.98	to		1.83		22,549,039		0.75			0.40		to	2.50			(6.22	)	to	(8.15	)
12/31/2017		6,311,186		17.05	to		1.99		25,327,849		1.41			0.40		to	2.50			17.54		to	15.71
12/31/2016		5,510,413		14.43	to		13.87		17,846,053		0.86			0.90		to	2.00			10.08		to	8.88
12/31/2015		5,217,993		13.11	to		12.74		14,390,342		1.24			0.90		to	2.00			0.52		to	(0.58	)
12/31/2014		5,064,436		13.04	to		12.81		12,486,991		1.19			0.90		to	2.00			8.31		to	7.13
AB Large Cap Growth Class B Shares
12/31/2018		139,295		2.66	to		2.02		378,988		—			1.15		to	2.50			1.15		to	(0.19	)
12/31/2017		165,616		2.63	to		2.03		445,455		—			1.15		to	2.50			30.18		to	28.47
12/31/2016		217,408		2.02	to		1.99		447,199		—			1.15		to	1.95			1.19		to	0.40
12/31/2015		229,886		2.00	to		1.99		468,281		—			1.15		to	1.95			9.59		to	8.74
12/31/2014		251,314		1.82	to		1.83		465,125		—			1.15		to	1.95			12.54		to	11.66
American Funds—Asset Allocation Class 2 Shares
12/31/2018		11,287,218		14.10	to		10.42		54,283,384		1.82			0.60		to	2.80			(5.18	)	to	(7.22	)
12/31/2017		15,279,462		14.87	to		11.23		54,222,730		1.54			0.60		to	2.80			15.36		to	13.07
12/31/2016		17,001,645		12.88	to		12.16		45,745,822		1.86			0.75		to	2.30			8.59		to	6.93
12/31/2015		15,909,527		11.86	to		11.38		32,340,462		1.68			0.75		to	2.30			0.64		to	(0.91	)
12/31/2014		16,361,256		11.78	to		11.48		30,134,635		1.61			0.75		to	2.30			4.61		to	3.00
American Funds—Bond Class 2 Shares
12/31/2018		4,465,231		10.42	to		9.79		15,508,538		2.39			0.60		to	2.80			(1.31	)	to	(3.43	)
12/31/2017		5,015,162		10.56	to		10.14		16,486,527		1.95			0.60		to	2.80			2.89		to	0.85
12/31/2016		5,550,075		10.24	to		9.68		15,744,768		1.72			0.75		to	2.30			2.18		to	0.61
12/31/2015		5,462,357		10.03	to		9.62		12,577,030		1.79			0.75		to	2.30			(0.47	)	to	(2.01	)
12/31/2014		5,446,189		10.07	to		9.82		10,292,485		2.38			0.75		to	2.30			4.49		to	2.88
American Funds—Growth Class 2 Shares
12/31/2018		4,840,041		18.67	to		11.94		43,464,477		0.45			0.60		to	2.80			(0.85	)	to	(2.98	)
12/31/2017		5,074,221		18.83	to		12.31		43,786,720		0.52			0.60		to	2.80			27.34		to	24.81
12/31/2016		5,791,039		14.77	to		13.95		30,774,870		0.86			0.75		to	2.30			8.67		to	7.01
12/31/2015		5,846,107		13.59	to		13.04		25,212,890		0.64			0.75		to	2.30			6.06		to	4.43
12/31/2014		5,807,414		12.81	to		12.49		20,881,031		1.26			0.75		to	2.30			7.70		to	6.04
American Funds—Growth-Income Class 2 Shares
12/31/2018		3,300,529		17.44	to		11.25		29,560,348		1.54			0.60		to	2.80			(2.38	)	to	(4.48	)
12/31/2017		6,132,937		17.87	to		11.78		31,707,232		1.44			0.60		to	2.80			21.47		to	19.06
12/31/2016		6,196,880		14.69	to		13.88		24,020,712		1.60			0.75		to	2.30			10.69		to	8.99
12/31/2015		6,078,747		13.27	to		12.73		19,534,129		1.37			0.75		to	2.30			0.70		to	(0.85	)
12/31/2014		5,669,604		13.18	to		12.84		16,812,248		1.51			0.75		to	2.30			9.81		to	8.12
American Funds—International Class 2 Shares
12/31/2018		11,793,828		12.08	to		10.86		28,518,169		2.22			0.60		to	2.80			(13.66	)	to	(15.51	)
12/31/2017		4,186,038		14.00	to		12.85		17,419,416		1.31			0.60		to	2.80			31.16		to	28.56
12/31/2016		4,168,809		10.66	to		10.07		11,475,849		1.49			0.75		to	2.30			2.76		to	1.18
12/31/2015		4,190,015		10.37	to		9.95		10,292,784		1.11			0.75		to	2.30			(5.24	)	to	(6.70	)
12/31/2014		9,289,276		10.94	to		10.66		15,825,063		1.58			0.75		to	2.30			(3.38	)	to	(4.87	)

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
Fidelity^® VIP Balanced Service Class 2
12/31/2018		8,189,669	$	14.33	to	$	10.50	$	26,708,903		1.37	%		0.40	%	to	2.50	%		(4.82	)%	to	(6.79	)%
12/31/2017		8,980,286		15.06	to		11.26		24,492,159		1.28			0.40		to	2.50			15.60		to	13.29
12/31/2016		9,610,359		13.02	to		12.30		21,131,382		1.13			0.45		to	2.00			6.50		to	4.87
12/31/2015		10,652,231		12.22	to		11.73		20,942,222		1.38			0.45		to	2.00			(0.09	)	to	(1.63	)
12/31/2014		10,374,254		12.23	to		11.92		18,248,581		1.52			0.45		to	2.00			9.52		to	7.84
Fidelity^® VIP Contrafund^® Initial Class
12/31/2018		—		16.17	to		15.85		—		—			0.65		to	1.00			(6.99	)	to	(7.31	)
12/31/2017		—		17.38	to		17.10		—		—			0.65		to	1.00			21.09		to	20.67
12/31/2016		—		14.35	to		14.17		—		—			0.65		to	1.00			7.31		to	6.93
12/31/2015		—		13.38	to		13.25		—		—			0.65		to	1.00			0.02		to	(0.33	)
12/31/2014		—		13.37	to		13.30		—		—			0.65		to	1.00			11.22		to	10.83
Fidelity^® VIP Contrafund^® Service Class 2
12/31/2018		5,600,447		15.86	to		2.54		37,145,331		0.43			0.40		to	2.50			(7.01	)	to	(8.93	)
12/31/2017		6,467,651		17.06	to		2.79		44,958,123		0.79			0.40		to	2.50			20.50		to	18.63
12/31/2016		6,870,488		14.09	to		13.54		34,500,882		0.67			0.90		to	2.00			6.77		to	5.60
12/31/2015		7,251,023		13.20	to		12.82		30,642,355		0.64			0.90		to	2.00			(0.48	)	to	(1.57	)
12/31/2014		10,107,714		13.26	to		13.02		34,518,197		1.00			0.90		to	2.00			10.65		to	9.44
Fidelity^® VIP Equity-Income Service Class 2
12/31/2018		271,212		1.60	to		1.72		502,640		1.83			1.15		to	2.50			(9.58	)	to	(10.78	)
12/31/2017		360,555		1.77	to		1.93		761,780		1.42			1.15		to	2.50			11.37		to	9.91
12/31/2016		441,460		1.59	to		1.87		849,441		2.07			1.15		to	1.95			16.37		to	15.46
12/31/2015		522,920		1.37	to		1.62		881,845		2.83			1.15		to	1.95			(5.33	)	to	(6.07	)
12/31/2014		589,612		1.44	to		1.73		1,054,722		2.49			1.15		to	1.95			7.25		to	6.40
Fidelity^® VIP Growth Service Class 2
12/31/2018		362,404		2.49	to		1.94		907,513		0.04			1.15		to	2.50			(1.57	)	to	(2.87	)
12/31/2017		392,569		2.53	to		2.00		1,003,079		0.08			1.15		to	2.50			33.29		to	31.54
12/31/2016		408,897		1.90	to		1.81		785,155		—			1.15		to	1.95			(0.59	)	to	(1.37	)
12/31/2015		427,939		1.91	to		1.83		832,825		0.03			1.15		to	1.95			5.69		to	4.86
12/31/2014		451,279		1.81	to		1.75		830,866		—			1.15		to	1.95			9.75		to	8.89
Fidelity^® VIP Growth Opportunities Service Class 2
12/31/2018		1,194		2.68	to		1.99		2,443		0.08			1.25		to	1.55			10.82		to	10.49
12/31/2017		1,238		2.42	to		1.80		2,289		0.10			1.25		to	1.55			32.53		to	32.14
12/31/2016		1,283		1.83	to		1.36		1,792		0.05			1.25		to	1.55			(1.17	)	to	(1.46	)
12/31/2015		1,328		1.85	to		1.38		1,880		0.00			1.25		to	1.55			4.04		to	3.74
12/31/2014		1,374		1.78	to		1.33		1,872		0.01			1.25		to	1.55			10.57		to	10.24
Fidelity^® VIP Mid Cap Initial Class
12/31/2018		—		14.64	to		14.35		—		—			0.65		to	1.00			(15.10	)	to	(15.39	)
12/31/2017		—		17.24	to		16.96		—		—			0.65		to	1.00			20.03		to	19.61
12/31/2016		—		14.36	to		14.18		—		—			0.65		to	1.00			11.51		to	11.12
12/31/2015		—		12.88	to		12.76		—		—			0.65		to	1.00			(2.03	)	to	(2.37	)
12/31/2014		—		13.15	to		13.07		—		—			0.65		to	1.00			5.60		to	5.23
Fidelity^® VIP Mid Cap Service Class 2
12/31/2018		2,778,518		14.36	to		2.95		20,393,728		0.37			0.40		to	2.50			(15.11	)	to	(16.86	)
12/31/2017		5,062,903		16.92	to		3.55		36,379,914		0.50			0.40		to	2.50			19.46		to	17.61
12/31/2016		5,297,560		14.09	to		13.54		27,980,216		0.34			0.90		to	2.00			10.92		to	9.71
12/31/2015		5,521,714		12.71	to		12.34		24,624,604		0.27			0.90		to	2.00			(2.51	)	to	(3.58	)
12/31/2014		3,544,494		13.03	to		12.80		16,020,401		0.03			0.90		to	2.00			5.08		to	3.93
Fidelity^® VIP Value Strategies Initial Class
12/31/2018		1,730		12.83	to		12.57		22,195		0.98			0.65		to	1.00			(17.86	)	to	(18.15	)
12/31/2017		1,731		15.62	to		15.36		27,025		1.51			0.65		to	1.00			18.59		to	18.17
12/31/2016		1,731		13.17	to		13.00		22,793		1.16			0.65		to	1.00			8.91		to	8.54
12/31/2015		1,731		12.09	to		11.98		20,931		1.17			0.65		to	1.00			(3.62	)	to	(3.95	)
12/31/2014		1,732		12.54	to		12.47		21,720		1.06			0.65		to	1.00			6.10		to	5.73

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
Fidelity^® VIP Value Strategies Service Class 2
12/31/2018		1,554,410	$	12.58	to	$	2.29	$	8,610,083		0.71	%		0.40	%	to	2.50	%		(17.83	)%	to	(19.52	)%
12/31/2017		2,008,310		15.32	to		2.85		12,836,585		1.23			0.40		to	2.50			18.02		to	16.19
12/31/2016		2,168,759		12.91	to		12.41		10,823,952		1.00			0.90		to	2.00			8.30		to	7.11
12/31/2015		2,209,354		11.93	to		11.59		9,569,134		0.90			0.90		to	2.00			(4.06	)	to	(5.11	)
12/31/2014		4,363,341		12.43	to		12.21		15,028,804		1.33			0.90		to	2.00			5.56		to	4.40
Franklin Founding Funds Allocation Class 4 Shares
12/31/2018		1,241,190		1.92	to		9.53		2,302,272		3.02			1.30		to	2.65			(10.75	)	to	(11.93	)
12/31/2017		1,619,010		2.15	to		10.82		3,384,945		2.52			1.30		to	2.65			10.35		to	8.90
12/31/2016		1,941,404		1.95	to		1.83		3,694,259		3.71			1.30		to	2.10			11.48		to	10.61
12/31/2015		2,139,547		1.75	to		1.66		3,663,185		2.77			1.30		to	2.10			(7.44	)	to	(8.17	)
12/31/2014		2,570,942		1.89	to		1.80		4,770,440		2.69			1.30		to	2.10			1.43		to	0.64
Franklin Income Class 2 Shares
12/31/2018		1,855,382		1.41	to		1.36		2,577,641		4.90			1.15		to	2.50			(5.40	)	to	(6.65	)
12/31/2017		2,252,757		1.49	to		1.46		3,318,178		4.23			1.15		to	2.50			8.43		to	7.00
12/31/2016		2,549,956		1.37	to		1.27		3,477,568		4.92			1.15		to	1.95			12.73		to	11.85
12/31/2015		2,995,232		1.22	to		1.14		3,637,520		4.37			1.15		to	1.95			(8.11	)	to	(8.83	)
12/31/2014		6,650,565		1.33	to		1.25		8,687,407		4.96			1.15		to	1.95			3.43		to	2.61
Franklin Mutual Shares Class 2 Shares
12/31/2018		400,640		1.27	to		1.54		510,977		2.27			1.15		to	2.50			(10.11	)	to	(11.30	)
12/31/2017		498,421		1.41	to		1.74		705,918		2.17			1.15		to	2.50			7.12		to	5.71
12/31/2016		582,908		1.32	to		1.22		775,627		1.91			1.15		to	1.95			14.74		to	13.84
12/31/2015		686,274		1.15	to		1.07		795,342		3.09			1.15		to	1.95			(6.02	)	to	(6.76	)
12/31/2014		713,957		1.22	to		1.15		882,965		1.97			1.15		to	1.95			5.90		to	5.07
Franklin Templeton Foreign Class 2 Shares
12/31/2018		1,262,245		0.95	to		1.08		1,180,019		2.71			1.15		to	2.50			(16.41	)	to	(17.52	)
12/31/2017		1,543,003		1.14	to		1.31		1,730,862		2.59			1.15		to	2.50			15.37		to	13.86
12/31/2016		1,725,317		0.99	to		0.92		1,683,083		1.97			1.15		to	1.95			5.96		to	5.13
12/31/2015		1,871,388		0.93	to		0.87		1,727,313		3.20			1.15		to	1.95			(7.56	)	to	(8.28	)
12/31/2014		2,182,365		1.01	to		0.95		2,186,589		1.91			1.15		to	1.95			(12.14	)	to	(12.83	)
Invesco V.I. American Franchise Series II Shares
12/31/2018		104,763		1.78	to		1.63		181,992		—			1.15		to	2.50			(4.99	)	to	(6.25	)
12/31/2017		109,350		1.87	to		1.74		200,731		—			1.15		to	2.50			25.59		to	23.94
12/31/2016		125,436		1.49	to		1.44		183,985		—			1.15		to	1.95			0.86		to	0.07
12/31/2015		126,470		1.48	to		1.44		184,547		—			1.15		to	1.95			3.56		to	2.75
12/31/2014		128,301		1.43	to		1.40		181,411		—			1.15		to	1.95			6.94		to	6.10
Janus Henderson—Enterprise Service Shares
12/31/2018		81,729		3.06	to		2.65		295,954		0.13			1.15		to	2.50			(1.80	)	to	(3.10	)
12/31/2017		94,795		3.11	to		2.73		356,554		0.53			1.15		to	2.50			25.65		to	24.00
12/31/2016		97,516		2.48	to		3.00		290,893		0.72			1.15		to	1.95			10.83		to	9.97
12/31/2015		101,617		2.24	to		2.73		275,800		0.76			1.15		to	1.95			2.59		to	1.78
12/31/2014		116,940		2.18	to		2.68		294,150		0.03			1.15		to	1.95			10.97		to	10.10
Janus Henderson—Global Research Service Shares
12/31/2018		197,738		1.65	to		1.32		297,947		0.96			1.15		to	2.50			(8.15	)	to	(9.36	)
12/31/2017		231,664		1.79	to		1.46		389,774		0.68			1.15		to	2.50			25.25		to	23.60
12/31/2016		289,631		1.43	to		1.43		395,561		0.95			1.15		to	1.95			0.66		to	(0.12	)
12/31/2015		299,642		1.42	to		1.44		406,816		0.53			1.15		to	1.95			(3.64	)	to	(4.40	)
12/31/2014		308,504		1.48	to		1.50		436,369		0.94			1.15		to	1.95			5.96		to	5.13
Janus Henderson—Mid Cap Value Service Shares
12/31/2018		934		2.30	to		2.18		2,089		0.90			1.25		to	1.55			(14.89	)	to	(15.14	)
12/31/2017		969		2.71	to		2.56		2,549		0.64			1.25		to	1.55			12.23		to	11.90
12/31/2016		1,004		2.41	to		2.29		2,356		0.91			1.25		to	1.55			17.30		to	16.96
12/31/2015		1,039		2.06	to		1.96		2,083		1.04			1.25		to	1.55			(4.88	)	to	(5.16	)
12/31/2014		1,075		2.16	to		2.07		2,268		3.34			1.25		to	1.55			7.10		to	6.78

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio Lowest to Highest**						Total Return* Corresponding to Lowest to Highest Expense Ratio**
JPMorgan Insurance Trust Core Bond Class 1 Shares
12/31/2018		342,219	$	1.29	to	$	9.91	$	433,361		2.40	%		1.25	%	to	2.50	%		(1.19	)%	to	(2.40	)%
12/31/2017		373,840		1.30	to		10.16		480,107		2.58			1.25		to	2.50			2.30		to	1.05
12/31/2016		417,140		1.27	to		1.21		525,026		2.65			1.25		to	1.95			0.86		to	0.17
12/31/2015		500,032		1.26	to		1.21		624,029		3.69			1.25		to	1.95			(0.13	)	to	(0.81	)
12/31/2014		544,722		1.27	to		1.22		681,481		3.84			1.25		to	1.95			3.62		to	2.91
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares
12/31/2018		52,138		3.04	to		9.41		158,145		0.96			1.25		to	2.50			(12.93	)	to	(14.00	)
12/31/2017		52,138		3.50	to		10.94		181,699		0.79			1.25		to	2.50			12.36		to	11.00
12/31/2016		52,138		3.11	to		2.95		161,765		0.86			1.25		to	1.95			13.28		to	12.51
12/31/2015		52,138		2.75	to		2.62		142,851		0.99			1.25		to	1.95			(3.86	)	to	(4.52	)
12/31/2014		52,138		2.86	to		2.75		148,638		0.78			1.25		to	1.95			13.69		to	12.91
JPMorgan Insurance Trust Small Cap Core Class 1 Shares
12/31/2018		2,503		3.09	to		9.53		7,637		0.37			1.25		to	2.50			(13.02	)	to	(14.09	)
12/31/2017		2,547		3.55	to		11.09		8,950		0.32			1.25		to	2.50			13.81		to	12.42
12/31/2016		2,590		3.12	to		2.96		8,007		0.52			1.25		to	1.95			18.73		to	17.92
12/31/2015		2,637		2.63	to		2.51		6,877		0.14			1.25		to	1.95			(6.45	)	to	(7.09	)
12/31/2014		2,687		2.81	to		2.70		7,500		0.14			1.25		to	1.95			8.24		to	7.50
JPMorgan Insurance Trust U.S. Equity Class 1 Shares
12/31/2018		24,936		3.16	to		10.76		78,356		0.82			1.25		to	2.50			(7.33	)	to	(8.47	)
12/31/2017		25,247		3.41	to		11.76		85,661		0.88			1.25		to	2.50			20.82		to	19.36
12/31/2016		25,556		2.82	to		2.68		71,808		0.98			1.25		to	1.95			9.57		to	8.82
12/31/2015		25,897		2.58	to		2.46		66,448		1.12			1.25		to	1.95			(0.38	)	to	(1.07	)
12/31/2014		26,225		2.59	to		2.49		67,588		0.91			1.25		to	1.95			12.50		to	11.72
MFS^® New Discovery Service Class
12/31/2018		535,587		2.58	to		2.74		1,480,353		—			1.15		to	2.50			(2.84	)	to	(4.13	)
12/31/2017		614,556		2.65	to		2.86		1,753,527		—			1.15		to	2.50			24.90		to	23.26
12/31/2016		728,669		2.12	to		1.99		1,699,029		—			1.15		to	1.95			7.57		to	6.72
12/31/2015		840,975		1.98	to		1.86		1,819,446		—			1.15		to	1.95			(3.26	)	to	(4.02	)
12/31/2014		986,222		2.04	to		1.94		2,228,226		—			1.15		to	1.95			(8.55	)	to	(9.26	)
MFS^® Total Return Service Class
12/31/2018		540,759		1.62	to		1.69		936,597		1.92			1.15		to	2.50			(6.95	)	to	(8.18	)
12/31/2017		684,296		1.74	to		1.84		1,277,761		2.24			1.15		to	2.50			10.75		to	9.30
12/31/2016		1,048,659		1.57	to		1.69		1,824,238		2.68			1.15		to	1.95			7.58		to	6.74
12/31/2015		1,107,681		1.46	to		1.58		1,794,787		2.37			1.15		to	1.95			(1.71	)	to	(2.48	)
12/31/2014		1,155,873		1.49	to		1.62		1,913,348		1.70			1.15		to	1.95			7.01		to	6.17
State Street Total Return V.I.S. Class 3 Shares
12/31/2018		1,413,838		12.38	to		10.19		4,872,213		2.33			0.40		to	2.70			(6.98	)	to	(9.08	)
12/31/2017		1,414,159		13.31	to		11.21		3,637,485		2.13			0.40		to	2.70			14.52		to	12.24
12/31/2016		1,363,223		11.59	to		10.95		2,313,919		1.77			0.65		to	2.20			5.39		to	3.78
12/31/2015		1,266,778		11.00	to		10.55		1,849,112		1.47			0.65		to	2.20			(1.98	)	to	(3.49	)
12/31/2014		1,449,643		11.22	to		10.94		2,041,207		1.51			0.65		to	2.20			4.39		to	2.79
TA 60/40 Allocation Service Class
12/31/2018⁽¹⁾		61,235		9.64	to		9.52		586,107		—			0.20		to	2.00			—		to	—
TA Aegon High Yield Bond Initial Class
12/31/2018		50,377		11.88	to		2.00		132,360		6.34			0.45		to	2.50			(2.79	)	to	(4.75	)
12/31/2017		47,609		12.23	to		2.10		130,755		6.27			0.45		to	2.50			6.96		to	4.83
12/31/2016		36,425		11.43	to		1.85		98,517		5.97			0.45		to	1.90			14.83		to	13.20
12/31/2015		53,786		9.95	to		1.63		120,077		6.26			0.45		to	1.90			(4.65	)	to	(6.01	)
12/31/2014		67,661		10.44	to		1.74		155,404		5.46			0.45		to	1.90			3.51		to	2.04

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio Lowest to Highest**						Total Return* Corresponding to Lowest to Highest Expense Ratio**
TA Aegon High Yield Bond Service Class
12/31/2018		1,879,618	$	11.58	to	$	9.97	$	6,383,952		5.91	%		0.20	%	to	2.50	%		(2.90	)%	to	(5.09	)%
12/31/2017		2,134,226		11.92	to		10.51		7,261,724		5.61			0.20		to	2.50			6.25		to	4.60
12/31/2016		2,268,819		11.15	to		10.71		6,641,135		5.69			0.90		to	2.00			13.97		to	12.73
12/31/2015		2,568,185		9.78	to		9.50		5,904,739		6.14			0.90		to	2.00			(5.16	)	to	(6.19	)
12/31/2014		2,664,043		10.31	to		10.13		5,933,436		5.62			0.90		to	2.00			2.68		to	1.55
TA Aegon U.S. Government Securities Initial Class
12/31/2018		132,172		1.46	to		1.15		261,085		3.03			1.25		to	2.50			(0.99	)	to	(2.20	)
12/31/2017		142,568		1.47	to		1.18		284,854		4.00			1.25		to	2.50			1.39		to	0.16
12/31/2016		127,683		1.45	to		1.25		251,979		0.88			1.25		to	1.90			(0.93	)	to	(1.56	)
12/31/2015		153,991		1.46	to		1.27		307,218		2.22			1.25		to	1.90			(1.14	)	to	(1.77	)
12/31/2014		184,056		1.48	to		1.29		371,973		3.93			1.25		to	1.90			3.36		to	2.70
TA Aegon U.S. Government Securities Service Class
12/31/2018		13,408,309		10.10	to		9.74		58,924,996		2.23			0.20		to	2.50			(0.19	)	to	(2.47	)
12/31/2017		10,761,864		10.11	to		9.99		28,859,784		2.68			0.20		to	2.50			1.90		to	(0.13	)
12/31/2016		19,883,084		9.90	to		9.36		72,397,578		0.44			0.45		to	2.00			(0.31	)	to	(1.84	)
12/31/2015		19,794,265		9.93	to		9.53		70,779,519		1.42			0.45		to	2.00			(0.62	)	to	(2.15	)
12/31/2014		14,098,292		10.00	to		9.74		32,526,271		3.72			0.45		to	2.00			3.95		to	2.35
TA American Funds Managed Risk—Balanced Service Class
12/31/2018		5,415,173		10.92	to		10.21		56,971,412		0.85			0.20		to	2.50			(6.01	)	to	(8.13	)
12/31/2017		4,488,029		11.62	to		11.11		50,784,606		0.64			0.20		to	2.50			14.11		to	11.84
12/31/2016		2,676,423		10.16	to		9.90		26,789,196		0.61			0.45		to	2.00			5.94		to	4.31
12/31/2015⁽¹⁾		977,622		9.59	to		9.49		9,319,240		—			0.45		to	2.00			—		to	—
TA Barrow Hanley Dividend Focused Initial Class
12/31/2018		1,230,584		14.66	to		1.69		3,017,847		2.16			0.45		to	2.50			(11.90	)	to	(13.67	)
12/31/2017		1,290,725		16.64	to		1.96		3,740,605		2.17			0.45		to	2.50			15.91		to	13.60
12/31/2016		1,213,323		14.36	to		2.01		3,032,677		2.05			0.45		to	1.90			14.40		to	12.78
12/31/2015		1,486,892		12.55	to		1.78		3,270,068		1.89			0.45		to	1.90			(4.03	)	to	(5.39	)
12/31/2014		1,664,774		13.08	to		1.89		3,844,650		1.34			0.45		to	1.90			11.67		to	10.08
TA Barrow Hanley Dividend Focused Service Class
12/31/2018		5,558,372		14.28	to		9.66		20,061,618		1.94			0.20		to	2.50			(11.86	)	to	(13.85	)
12/31/2017		5,898,194		16.20	to		11.21		23,499,428		2.21			0.20		to	2.50			15.09		to	13.30
12/31/2016		5,972,559		13.98	to		13.44		19,563,340		2.20			0.90		to	2.00			13.57		to	12.33
12/31/2015		4,581,223		12.31	to		11.96		12,481,040		1.56			0.90		to	2.00			(4.69	)	to	(5.74	)
12/31/2014		2,227,705		12.92	to		12.69		6,012,268		1.25			0.90		to	2.00			10.93		to	9.72
TA BlackRock Equity Smart Beta 100 Service Class
12/31/2018		1,675,426		12.26	to		11.04		20,189,042		1.15			0.20		to	2.50			(5.52	)	to	(7.65	)
12/31/2017		1,638,678		12.98	to		11.96		21,047,568		0.58			0.20		to	2.50			22.68		to	20.23
12/31/2016⁽¹⁾		107,409		10.55	to		10.43		1,126,448		—			0.45		to	2.00			—		to	—
TA BlackRock Global Allocation Service Class
12/31/2018		21,778,327		11.66	to		9.94		60,747,803		1.12			0.20		to	2.50			(7.81	)	to	(9.89	)
12/31/2017		26,269,985		12.65	to		11.03		72,510,972		1.10			0.20		to	2.50			12.99		to	10.73
12/31/2016		29,085,578		11.17	to		10.53		62,055,519		0.38			0.45		to	2.00			4.09		to	2.49
12/31/2015		32,066,493		10.73	to		10.28		56,381,328		1.72			0.45		to	2.00			(1.67	)	to	(3.18	)
12/31/2014		33,949,110		10.91	to		10.62		56,800,395		1.75			0.45		to	2.00			1.29		to	(0.36	)
TA BlackRock Global Allocation Managed Risk—Balanced Service Class
12/31/2018		1,255,834		9.85	to		9.84		11,878,103		1.22			0.20		to	2.50			(7.95	)	to	(10.03	)
12/31/2017		907,756		10.70	to		10.93		9,425,985		0.66			0.20		to	2.50			12.00		to	9.77
12/31/2016		770,157		9.53	to		9.22		7,203,419		1.96			0.45		to	2.00			(0.08	)	to	(1.61	)
12/31/2015⁽¹⁾		348,633		9.54	to		9.37		3,294,098		—			0.45		to	2.00			—		to	—
TA BlackRock Global Allocation Managed Risk—Growth Service Class
12/31/2018		977,690		9.79	to		10.04		9,178,404		1.29			0.20		to	2.50			(10.34	)	to	(12.37	)
12/31/2017		934,837		10.92	to		11.45		9,906,384		0.68			0.20		to	2.50			17.34		to	15.00
12/31/2016		802,785		9.28	to		8.98		7,315,682		2.25			0.45		to	2.00			(0.64	)	to	(2.16	)
12/31/2015⁽¹⁾		491,576		9.34	to		9.18		4,545,309		—			0.45		to	2.00			—		to	—

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio Lowest to Highest**						Total Return* Corresponding to Lowest to Highest Expense Ratio**
TA BlackRock Global Real Estate Securities Initial Class
12/31/2018		7,607	$	10.29	to	$	2.20	$	19,076		8.81	%		0.45	%	to	2.50	%		(10.49	)%	to	(12.30	)%
12/31/2017		8,032		11.49	to		2.51		22,719		3.68			0.45		to	2.50			10.82		to	8.61
12/31/2016		8,553		10.37	to		2.01		22,037		1.76			0.45		to	1.90			0.17		to	(1.25	)
12/31/2015		8,987		10.35	to		2.04		23,333		3.42			0.45		to	1.90			(1.05	)	to	(2.46	)
12/31/2014		14,673		10.46	to		2.09		38,903		1.46			0.45		to	1.90			13.06		to	11.45
TA BlackRock Global Real Estate Securities Service Class
12/31/2018		1,321,327		10.02	to		9.62		4,790,053		8.08			0.20		to	2.50			(10.51	)	to	(12.53	)
12/31/2017		1,468,053		11.20	to		11.00		6,088,478		3.27			0.20		to	2.50			10.02		to	8.31
12/31/2016		1,703,876		10.11	to		9.72		5,721,454		1.43			0.90		to	2.00			(0.48	)	to	(1.56	)
12/31/2015		1,889,106		10.16	to		9.87		5,829,195		4.20			0.90		to	2.00			(1.76	)	to	(2.83	)
12/31/2014		2,083,565		10.34	to		10.16		5,463,539		1.36			0.90		to	2.00			12.28		to	11.05
TA BlackRock Government Money Market Initial Class
12/31/2018		176,536		1.00	to		0.80		232,251		1.84			1.25		to	2.50			0.54		to	(0.69	)
12/31/2017		126,501		0.99	to		0.80		165,775		0.01			1.25		to	2.50			(1.23	)	to	(2.43	)
12/31/2016		58,892		1.00	to		0.92		78,249		0.01			1.25		to	1.90			(1.22	)	to	(1.85	)
12/31/2015		106,547		1.02	to		0.94		143,537		0.01			1.25		to	1.90			(1.23	)	to	(1.86	)
12/31/2014		126,305		1.03	to		0.96		172,527		0.01			1.25		to	1.90			(1.23	)	to	(1.86	)
TA BlackRock Government Money Market Service Class
12/31/2018		7,842,179		9.88	to		0.79		20,467,005		0.73			0.20		to	2.50			0.64		to	(1.66	)
12/31/2017		7,834,925		9.82	to		0.80		22,509,391		0.01			0.20		to	2.50			(0.44	)	to	(2.43	)
12/31/2016		12,254,624		9.84	to		9.29		36,408,179		0.01			0.45		to	2.00			(0.44	)	to	(1.97	)
12/31/2015		10,390,576		9.88	to		9.48		47,562,444		0.01			0.45		to	2.00			(0.44	)	to	(1.98	)
12/31/2014		13,187,371		9.93	to		9.67		63,067,404		0.01			0.45		to	2.00			(0.44	)	to	(1.98	)
TA BlackRock Smart Beta 40 Initial Class
12/31/2018		35,527		1.72	to		1.50		59,783		1.93			1.25		to	2.50			(5.33	)	to	(6.49	)
12/31/2017		35,881		1.82	to		1.61		63,870		1.78			1.25		to	2.50			8.39		to	7.07
12/31/2016		35,803		1.68	to		1.35		58,884		1.50			1.25		to	1.90			0.97		to	0.32
12/31/2015		40,362		1.66	to		1.35		65,845		1.27			1.25		to	1.90			(1.31	)	to	(1.94	)
12/31/2014		40,726		1.69	to		1.37		67,420		1.03			1.25		to	1.90			4.26		to	3.59
TA BlackRock Smart Beta 40 Service Class
12/31/2018		6,257,613		11.24	to		1.11		19,793,618		1.68			0.20		to	2.50			(4.62	)	to	(6.77	)
12/31/2017		7,433,079		11.79	to		1.19		22,153,340		1.47			0.20		to	2.50			9.03		to	6.86
12/31/2016		8,614,962		10.78	to		10.19		22,289,282		1.25			0.45		to	2.00			1.53		to	(0.02	)
12/31/2015		9,406,732		10.62	to		10.19		21,064,949		1.05			0.45		to	2.00			(0.87	)	to	(2.39	)
12/31/2014		10,378,014		10.71	to		10.44		20,046,123		0.83			0.45		to	2.00			4.88		to	3.27
TA BlackRock Smart Beta 50 Service Class
12/31/2018		1,227,760		11.20	to		10.46		13,386,876		0.87			0.20		to	2.50			(2.82	)	to	(5.01	)
12/31/2017		716,979		11.52	to		11.01		8,137,482		0.77			0.20		to	2.50			12.34		to	10.10
12/31/2016⁽¹⁾		345,827		10.23	to		10.11		3,516,806		—			0.45		to	2.00			—		to	—
TA BlackRock Smart Beta 75 Service Class
12/31/2018		1,258,007		11.63	to		10.75		14,317,981		0.89			0.20		to	2.50			(4.10	)	to	(6.27	)
12/31/2017		1,058,764		12.13	to		11.47		12,688,035		0.55			0.20		to	2.50			17.44		to	15.10
12/31/2016⁽¹⁾		81,476		10.30	to		10.18		833,826		—			0.45		to	2.00			—		to	—
TA BlackRock Tactical Allocation Service Class
12/31/2018		27,351,633		12.28	to		1.17		94,975,663		0.98			0.20		to	2.50			(4.61	)	to	(6.76	)
12/31/2017		30,063,885		12.88	to		1.25		108,003,935		1.48			0.20		to	2.50			11.18		to	8.97
12/31/2016		32,609,979		11.55	to		10.92		100,557,415		2.32			0.45		to	2.00			4.44		to	2.84
12/31/2015		33,725,251		11.06	to		10.61		94,383,584		1.78			0.45		to	2.00			(0.57	)	to	(2.10	)
12/31/2014		34,968,108		11.13	to		10.84		87,586,850		1.30			0.45		to	2.00			4.60		to	2.99

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return* Corresponding to Lowest to Highest Expense Ratio**
TA Greystone International Growth Initial Class
12/31/2018		63,800	$	10.88	to	$	1.40	$	87,012		1.24	%		0.45	%	to	2.50	%		(18.08	)%	to	(19.73	)%
12/31/2017		67,784		13.28	to		1.74		113,918		1.67			0.45		to	2.50			26.68		to	24.15
12/31/2016		46,174		10.48	to		1.57		61,836		1.54			0.45		to	1.90			(0.37	)	to	(1.78	)
12/31/2015		53,642		10.52	to		1.60		72,782		1.60			0.45		to	1.90			(0.37	)	to	(1.79	)
12/31/2014		49,145		10.56	to		1.63		67,563		0.96			0.45		to	1.90			(5.60	)	to	(6.94	)
TA Greystone International Growth Service Class
12/31/2018		1,767,291		10.60	to		9.95		6,860,618		0.53			0.20		to	2.50			(18.11	)	to	(19.96	)
12/31/2017		6,976,614		12.95	to		12.43		23,218,498		1.33			0.20		to	2.50			25.85		to	23.90
12/31/2016		5,268,104		10.22	to		9.82		13,345,400		1.35			0.90		to	2.00			(1.03	)	to	(2.11	)
12/31/2015		5,061,054		10.33	to		10.03		12,388,616		1.27			0.90		to	2.00			(1.14	)	to	(2.22	)
12/31/2014		1,240,007		10.44	to		10.26		3,695,090		0.95			0.90		to	2.00			(6.26	)	to	(7.28	)
TA International Equity Index Service Class
12/31/2018		140,608		9.51	to		9.15		1,313,264		0.41			0.35		to	2.65			(14.53	)	to	(16.46	)
12/31/2017⁽¹⁾		34,853		11.12	to		10.96		385,013		—			0.35		to	2.65			—		to	—
TA Janus Balanced Service Class
12/31/2018		16,302,543		14.23	to		11.02		85,847,112		1.49			0.20		to	2.50			(0.27	)	to	(2.52	)
12/31/2017		16,864,853		14.27	to		11.31		84,726,412		1.33			0.20		to	2.50			16.21		to	13.89
12/31/2016		17,165,988		12.25	to		11.57		66,683,993		1.09			0.45		to	2.00			3.65		to	2.06
12/31/2015		14,140,653		11.82	to		11.34		50,716,781		0.83			0.45		to	2.00			(0.33	)	to	(1.86	)
12/31/2014		11,828,480		11.86	to		11.55		35,378,527		0.69			0.45		to	2.00			7.35		to	5.69
TA Janus Mid-Cap Growth Initial Class
12/31/2018		8,193		14.39	to		1.74		64,489		0.07			0.45		to	2.50			(1.66	)	to	(3.64	)
12/31/2017		4,743		14.64	to		1.81		14,086		0.05			0.45		to	2.50			28.43		to	25.87
12/31/2016		32,509		11.40	to		1.88		47,880		—			0.45		to	1.90			(2.48	)	to	(3.87	)
12/31/2015		24,339		11.69	to		1.95		33,445		—			0.45		to	1.90			(5.46	)	to	(6.80	)
12/31/2014		28,385		12.36	to		2.10		41,630		—			0.45		to	1.90			(0.43	)	to	(1.85	)
TA Janus Mid-Cap Growth Service Class
12/31/2018		3,554,951		14.02	to		11.89		13,165,619		—			0.20		to	2.50			(1.65	)	to	(3.87	)
12/31/2017		1,074,011		14.26	to		12.36		4,956,165		—			0.20		to	2.50			27.59		to	25.61
12/31/2016		1,076,773		11.10	to		10.67		3,562,151		—			0.90		to	2.00			(3.18	)	to	(4.23	)
12/31/2015		1,283,293		11.47	to		11.14		3,821,907		—			0.90		to	2.00			(6.11	)	to	(7.14	)
12/31/2014		1,405,002		12.21	to		12.00		4,158,692		—			0.90		to	2.00			(1.15	)	to	(2.24	)
TA Jennison Growth Initial Class
12/31/2018		723,816		20.20	to		2.25		1,707,050		0.02			0.45		to	2.50			(1.31	)	to	(3.29	)
12/31/2017		743,075		20.47	to		2.33		1,747,868		0.01			0.45		to	2.50			35.83		to	33.12
12/31/2016		840,949		15.07	to		2.13		1,422,270		—			0.45		to	1.90			(2.09	)	to	(3.48	)
12/31/2015		1,148,264		15.39	to		2.20		2,001,597		—			0.45		to	1.90			10.90		to	9.33
12/31/2014		1,307,658		13.88	to		2.01		2,074,564		—			0.45		to	1.90			9.46		to	7.91
TA Jennison Growth Service Class
12/31/2018		4,346,169		19.66	to		12.63		22,433,034		—			0.20		to	2.50			(1.34	)	to	(3.56	)
12/31/2017		4,805,173		19.93	to		13.09		24,077,942		—			0.20		to	2.50			34.82		to	32.73
12/31/2016		4,656,507		14.68	to		14.11		16,155,829		—			0.90		to	2.00			(2.78	)	to	(3.84	)
12/31/2015		5,878,652		15.10	to		14.67		18,662,985		—			0.90		to	2.00			10.12		to	8.91
12/31/2014		4,747,106		13.72	to		13.47		12,818,115		—			0.90		to	2.00			8.81		to	7.62
TA JPMorgan Asset Allocation—Conservative Initial Class
12/31/2018		—		1.79	to		1.62		—		—			1.25		to	2.50			(5.17	)	to	(6.33	)
12/31/2017		9,676		1.89	to		1.73		17,848		2.12			1.25		to	2.50			11.42		to	10.07
12/31/2016		9,676		1.69	to		1.42		16,042		2.03			1.25		to	1.90			3.33		to	2.68
12/31/2015		9,676		1.64	to		1.38		15,547		2.66			1.25		to	1.90			(3.17	)	to	(3.79	)
12/31/2014		35,716		1.69	to		1.44		59,352		2.70			1.25		to	1.90			0.93		to	0.28

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio Lowest to Highest**						Total Return* Corresponding to Lowest to Highest Expense Ratio**
TA JPMorgan Asset Allocation—Conservative Service Class
12/31/2018		20,318,517	$	11.62	to	$	10.18	$	61,918,870		1.59	%		0.20	%	to	2.50	%		(4.47	)%	to	(6.66	)%
12/31/2017		22,261,316		12.16	to		10.91		67,550,887		1.92			0.20		to	2.50			12.06		to	9.83
12/31/2016		23,849,251		10.83	to		10.23		60,565,402		1.78			0.45		to	2.00			3.84		to	2.24
12/31/2015		29,281,139		10.43	to		10.01		64,424,762		2.02			0.45		to	2.00			(2.58	)	to	(4.08	)
12/31/2014		31,677,104		10.70	to		10.43		61,576,298		2.49			0.45		to	2.00			1.49		to	(0.07	)
TA JPMorgan Asset Allocation—Growth Initial Class
12/31/2018		16,941		2.00	to		1.98		33,118		1.89			1.25		to	2.50			(11.51	)	to	(12.59	)
12/31/2017		16,941		2.26	to		2.26		37,480		1.11			1.25		to	2.50			23.10		to	21.60
12/31/2016		30,761		1.84	to		1.61		55,366		1.27			1.25		to	1.90			4.77		to	4.10
12/31/2015		82,219		1.76	to		1.54		141,457		1.65			1.25		to	1.90			(3.14	)	to	(3.76	)
12/31/2014		82,871		1.81	to		1.61		147,420		2.36			1.25		to	1.90			1.46		to	0.81
TA JPMorgan Asset Allocation—Growth Service Class
12/31/2018		1,762,178		13.44	to		10.52		6,812,799		1.72			0.20		to	2.50			(10.88	)	to	(12.90	)
12/31/2017		2,253,319		15.08	to		12.07		8,452,268		1.17			0.20		to	2.50			23.82		to	21.35
12/31/2016		2,822,565		12.15	to		11.48		7,545,147		1.99			0.45		to	2.00			5.35		to	3.73
12/31/2015		3,005,299		11.53	to		11.06		6,787,813		1.48			0.45		to	2.00			(2.55	)	to	(4.06	)
12/31/2014		3,471,873		11.83	to		11.53		6,835,481		2.10			0.45		to	2.00			1.98		to	0.41
TA JPMorgan Asset Allocation—Moderate Initial Class
12/31/2018		340,781		1.94	to		1.80		644,471		1.75			1.25		to	2.50			(6.30	)	to	(7.45	)
12/31/2017		358,312		2.07	to		1.94		724,297		1.96			1.25		to	2.50			15.03		to	13.64
12/31/2016		513,502		1.80	to		1.53		903,679		2.32			1.25		to	1.90			4.26		to	3.60
12/31/2015		477,423		1.72	to		1.48		807,013		2.04			1.25		to	1.90			(3.43	)	to	(4.05	)
12/31/2014		508,985		1.79	to		1.54		892,285		2.15			1.25		to	1.90			1.50		to	0.85
TA JPMorgan Asset Allocation—Moderate Service Class
12/31/2018		82,307,295		12.23	to		1.61		281,356,104		1.56			0.20		to	2.50			(5.54	)	to	(7.67	)
12/31/2017		92,461,728		12.95	to		1.75		300,651,662		1.64			0.20		to	2.50			15.60		to	13.30
12/31/2016		104,593,983		11.17	to		10.56		281,768,454		1.96			0.45		to	2.00			4.78		to	3.18
12/31/2015		111,980,841		10.66	to		10.23		279,599,191		1.85			0.45		to	2.00			(2.91	)	to	(4.41	)
12/31/2014		119,812,391		10.98	to		10.70		289,657,459		2.15			0.45		to	2.00			2.15		to	0.58
TA JPMorgan Asset Allocation—Moderate Growth Initial Class
12/31/2018		206,539		2.01	to		1.91		410,450		1.88			1.25		to	2.50			(8.22	)	to	(9.35	)
12/31/2017		206,571		2.19	to		2.11		447,561		1.71			1.25		to	2.50			18.30		to	16.86
12/31/2016		211,341		1.85	to		1.59		387,179		2.10			1.25		to	1.90			5.23		to	4.57
12/31/2015		149,672		1.76	to		1.52		261,989		2.19			1.25		to	1.90			(3.44	)	to	(4.06	)
12/31/2014		186,731		1.82	to		1.59		337,554		2.82			1.25		to	1.90			1.31		to	0.66
TA JPMorgan Asset Allocation—Moderate Growth Service Class
12/31/2018		47,913,709		12.86	to		1.22		174,322,733		1.65			0.20		to	2.50			(7.51	)	to	(9.59	)
12/31/2017		54,159,674		13.90	to		1.35		200,756,348		1.52			0.20		to	2.50			18.96		to	16.59
12/31/2016		57,499,076		11.66	to		11.02		162,356,929		1.79			0.45		to	2.00			5.78		to	4.16
12/31/2015		61,880,963		11.02	to		10.58		153,403,905		2.01			0.45		to	2.00			(2.96	)	to	(4.45	)
12/31/2014		66,510,851		11.36	to		11.07		151,210,658		2.59			0.45		to	2.00			1.99		to	0.42
TA JPMorgan Core Bond Service Class
12/31/2018		10,258,351		10.56	to		9.88		30,158,394		2.94			0.20		to	2.50			(0.29	)	to	(2.54	)
12/31/2017		10,257,283		10.60	to		10.14		30,045,745		2.60			0.20		to	2.50			2.96		to	0.90
12/31/2016		9,984,860		10.27	to		9.70		27,671,195		1.90			0.45		to	2.00			1.60		to	0.04
12/31/2015		9,485,030		10.10	to		9.70		20,112,573		1.87			0.45		to	2.00			(0.11	)	to	(1.65	)
12/31/2014		8,490,749		10.12	to		9.86		15,198,187		1.95			0.45		to	2.00			4.63		to	3.02
TA JPMorgan Enhanced Index Initial Class
12/31/2018		194,650		16.76	to		1.94		638,397		1.12			0.45		to	2.50			(6.43	)	to	(8.32	)
12/31/2017		204,079		17.91	to		2.12		722,249		0.57			0.45		to	2.50			20.61		to	18.21
12/31/2016		206,326		14.85	to		2.00		610,859		0.39			0.45		to	1.90			10.85		to	9.28
12/31/2015		236,425		13.40	to		1.83		634,049		0.97			0.45		to	1.90			(0.52	)	to	(1.94	)
12/31/2014		261,524		13.47	to		1.86		655,455		0.80			0.45		to	1.90			13.67		to	12.06

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return* Corresponding to Lowest to Highest Expense Ratio**
TA JPMorgan Enhanced Index Service Class
12/31/2018		632,391	$	16.33	to	$	10.65	$	5,294,028		0.87	%		0.20	%	to	2.50	%		(6.43	)%	to	(8.55	)%
12/31/2017		610,054		17.46	to		11.64		6,488,465		0.41			0.20		to	2.50			19.74		to	17.88
12/31/2016		466,902		14.48	to		13.92		4,419,905		0.16			0.90		to	2.00			10.13		to	8.93
12/31/2015		378,610		13.15	to		12.78		1,978,768		0.81			0.90		to	2.00			(1.25	)	to	(2.33	)
12/31/2014		447,817		13.32	to		13.08		2,099,233		0.75			0.90		to	2.00			12.95		to	11.71
TA JPMorgan International Moderate Growth Service Class
12/31/2018		16,339,209		11.00	to		1.09		41,937,578		2.17			0.20		to	2.50			(12.09	)	to	(14.07	)
12/31/2017		18,492,054		12.51	to		1.27		50,493,353		1.60			0.20		to	2.50			20.93		to	18.52
12/31/2016		19,645,357		10.32	to		9.75		41,499,204		1.87			0.45		to	2.00			0.62		to	(0.92	)
12/31/2015		21,891,483		10.26	to		9.84		43,094,351		1.82			0.45		to	2.00			(2.32	)	to	(3.83	)
12/31/2014		21,845,760		10.50	to		10.23		35,391,209		2.15			0.45		to	2.00			(1.23	)	to	(2.75	)
TA JPMorgan Mid Cap Value Service Class
12/31/2018		1,822,059		14.61	to		2.07		14,420,132		0.63			0.20		to	2.50			(12.27	)	to	(14.25	)
12/31/2017		2,459,077		16.66	to		2.42		20,619,585		0.54			0.20		to	2.50			12.68		to	10.44
12/31/2016		5,651,589		14.75	to		13.93		26,255,068		1.90			0.45		to	2.00			13.77		to	12.02
12/31/2015		5,733,005		12.96	to		12.44		20,803,900		0.76			0.45		to	2.00			(3.37	)	to	(4.86	)
12/31/2014		5,723,903		13.41	to		13.07		20,447,452		0.64			0.45		to	2.00			14.47		to	12.71
TA JPMorgan Tactical Allocation Service Class
12/31/2018		17,897,044		11.56	to		10.00		78,049,142		1.92			0.20		to	2.50			(3.38	)	to	(5.56	)
12/31/2017		20,667,991		11.96	to		10.59		85,781,288		1.58			0.20		to	2.50			8.02		to	5.87
12/31/2016		22,814,234		11.05	to		10.44		83,825,181		1.16			0.45		to	2.00			3.73		to	2.13
12/31/2015		22,739,979		10.65	to		10.22		70,466,542		1.14			0.45		to	2.00			(0.85	)	to	(2.37	)
12/31/2014		20,676,779		10.74	to		10.47		51,151,249		0.96			0.45		to	2.00			5.80		to	4.18
TA Legg Mason Dynamic Allocation—Balanced Service Class
12/31/2018		16,297,233		11.48	to		1.03		80,719,543		1.40			0.20		to	2.50			(3.51	)	to	(5.72	)
12/31/2017		18,245,161		11.90	to		1.09		93,925,698		1.11			0.20		to	2.50			9.97		to	7.78
12/31/2016		22,101,622		10.79	to		10.19		96,492,892		1.10			0.45		to	2.00			(1.11	)	to	(2.63	)
12/31/2015		24,115,700		10.91	to		10.47		93,488,870		0.91			0.45		to	2.00			(2.52	)	to	(4.02	)
12/31/2014		16,981,768		11.19	to		10.91		57,286,673		0.66			0.45		to	2.00			8.00		to	6.33
TA Legg Mason Dynamic Allocation—Growth Service Class
12/31/2018		11,137,528		11.89	to		1.13		52,742,521		1.23			0.20		to	2.50			(4.92	)	to	(7.10	)
12/31/2017		12,174,684		12.50	to		1.22		60,496,584		0.98			0.20		to	2.50			12.70		to	10.45
12/31/2016		15,446,885		11.07	to		10.46		62,664,292		0.99			0.45		to	2.00			(1.43	)	to	(2.94	)
12/31/2015		16,046,497		11.23	to		10.77		66,569,685		0.69			0.45		to	2.00			(3.38	)	to	(4.87	)
12/31/2014		12,452,814		11.62	to		11.33		41,526,468		0.57			0.45		to	2.00			7.69		to	6.04
TA Levin Large Cap Value Service Class
12/31/2018⁽¹⁾		10,583		9.03	to		8.93		95,017		—			0.20		to	2.00			—		to	—
TA Madison Diversified Income Service Class
12/31/2018		174,620		12.08	to		10.34		1,953,770		1.52			0.20		to	2.50			(0.95	)	to	(3.19	)
12/31/2017⁽¹⁾		100,620		12.19	to		10.68		1,092,716		0.34			0.20		to	2.50			—		to	—
TA Managed Risk—Balanced ETF Service Class
12/31/2018		101,640,810		11.96	to		1.05		422,463,476		1.68			0.20		to	2.50			(4.74	)	to	(6.92	)
12/31/2017		114,723,659		12.56	to		1.13		470,512,548		1.68			0.20		to	2.50			12.93		to	10.68
12/31/2016		127,929,980		11.09	to		10.48		438,296,472		1.66			0.45		to	2.00			3.29		to	1.70
12/31/2015		140,114,274		10.74	to		10.30		432,034,799		1.30			0.45		to	2.00			(2.21	)	to	(3.71	)
12/31/2014		136,879,690		10.98	to		10.70		342,152,293		0.95			0.45		to	2.00			4.08		to	2.48
TA Managed Risk—Conservative ETF Service Class
12/31/2018		26,627,431		11.78	to		1.09		77,976,438		1.80			0.20		to	2.50			(3.79	)	to	(5.99	)
12/31/2017		29,909,663		12.25	to		1.16		89,983,402		1.84			0.20		to	2.50			10.54		to	8.33
12/31/2016		33,427,887		11.05	to		10.44		88,366,488		1.62			0.45		to	2.00			3.61		to	2.02
12/31/2015		37,681,242		10.67	to		10.24		86,100,597		1.49			0.45		to	2.00			(1.13	)	to	(2.65	)
12/31/2014		40,013,205		10.79	to		10.52		77,921,336		1.25			0.45		to	2.00			4.77		to	3.16

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
TA Managed Risk—Growth ETF Service Class
12/31/2018		93,132,624	$	12.52	to	$	1.22	$	329,410,155		1.60	%		0.20	%	to	2.50	%		(7.34	)%	to	(9.46	)%
12/31/2017		107,929,650		13.52	to		1.35		395,368,871		1.62			0.20		to	2.50			17.94		to	15.59
12/31/2016		122,841,558		11.43	to		10.80		354,352,467		1.66			0.45		to	2.00			4.20		to	2.60
12/31/2015		130,279,773		10.97	to		10.53		339,220,776		1.48			0.45		to	2.00			(3.95	)	to	(5.43	)
12/31/2014		139,255,241		11.42	to		11.13		326,832,308		1.06			0.45		to	2.00			3.51		to	1.91
TA Market Participation Strategy Service Class
12/31/2018		6,796,055		12.63	to		10.16		30,245,258		0.37			0.20		to	2.50			(2.92	)	to	(5.12	)
12/31/2017		7,606,598		13.01	to		10.71		34,598,644		0.31			0.20		to	2.50			10.30		to	8.10
12/31/2016		8,820,580		11.77	to		11.12		34,140,280		0.16			0.45		to	2.00			3.70		to	2.10
12/31/2015		8,065,884		11.35	to		10.89		31,264,212		—			0.45		to	2.00			(3.68	)	to	(5.16	)
12/31/2014		6,502,270		11.78	to		11.48		27,861,249		—			0.45		to	2.00			7.56		to	5.91
TA Morgan Stanley Capital Growth Initial Class
12/31/2018		27,889		3.15	to		2.87		94,093		—			1.25		to	2.50			5.36		to	4.07
12/31/2017		26,276		2.99	to		2.75		84,267		—			1.25		to	2.50			41.83		to	40.10
12/31/2016		28,129		2.11	to		2.05		63,699		—			1.25		to	1.90			(3.47	)	to	(4.08	)
12/31/2015		34,497		2.18	to		2.14		81,045		—			1.25		to	1.90			10.41		to	9.70
12/31/2014		33,027		1.98	to		1.95		70,381		—			1.25		to	1.90			4.70		to	4.03
TA Morgan Stanley Capital Growth Service Class
12/31/2018		618,397		23.24	to		3.15		7,435,779		—			0.20		to	2.50			6.22		to	3.82
12/31/2017		648,014		21.88	to		3.03		6,155,878		—			0.20		to	2.50			41.99		to	39.78
12/31/2016		641,141		15.30	to		14.71		3,709,725		—			0.90		to	2.00			(3.37	)	to	(4.43	)
12/31/2015		530,782		15.84	to		15.39		2,180,373		—			0.90		to	2.00			10.45		to	9.24
12/31/2014		487,574		14.34	to		14.09		1,461,885		—			0.90		to	2.00			4.84		to	3.69
TA Multi-Managed Balanced Initial Class
12/31/2018		12,065		2.52	to		2.18		29,702		1.44			1.25		to	2.50			(4.85	)	to	(6.02	)
12/31/2017		12,065		2.65	to		2.32		31,264		0.86			1.25		to	2.50			12.73		to	11.36
12/31/2016		12,065		2.35	to		2.06		27,775		1.18			1.25		to	1.90			6.55		to	5.87
12/31/2015		23,192		2.21	to		1.95		50,184		1.37			1.25		to	1.90			(1.02	)	to	(1.65	)
12/31/2014		23,192		2.23	to		1.98		50,777		1.38			1.25		to	1.90			9.44		to	8.74
TA Multi-Managed Balanced Service Class
12/31/2018		16,784,488		13.97	to		10.36		124,897,566		1.23			0.20		to	2.50			(4.10	)	to	(6.26	)
12/31/2017		19,130,187		14.56	to		11.05		133,663,918		0.79			0.20		to	2.50			13.31		to	11.05
12/31/2016		12,471,373		12.82	to		12.11		83,405,643		1.01			0.45		to	2.00			7.16		to	5.51
12/31/2015		4,342,112		11.97	to		11.48		13,596,331		1.19			0.45		to	2.00			(0.51	)	to	(2.04	)
12/31/2014		4,141,602		12.03	to		11.72		10,150,180		1.24			0.45		to	2.00			10.00		to	8.31
TA Multi-Manager Alternative Strategies Service Class
12/31/2018		31,168		9.96	to		9.46		298,469		0.79			0.20		to	2.50			(4.82	)	to	(7.00	)
12/31/2017		27,933		10.46	to		10.17		283,601		1.29			0.20		to	2.50			4.29		to	3.05
12/31/2016		21,576		10.01	to		9.64		212,059		2.59			0.45		to	1.65			1.56		to	0.35
12/31/2015		13,978		9.85	to		9.60		136,414		0.36			0.45		to	1.65			(6.03	)	to	(7.15	)
12/31/2014		2,886		10.49	to		10.34		30,031		0.83			0.45		to	1.65			2.49		to	1.27
TA PIMCO Tactical—Balanced Service Class
12/31/2018		9,336,422		11.92	to		1.01		32,006,412		3.20			0.20		to	2.50			(7.12	)	to	(9.22	)
12/31/2017		10,673,517		12.84	to		1.12		37,398,555		0.30			0.20		to	2.50			11.54		to	9.31
12/31/2016		11,684,566		11.48	to		10.85		37,518,764		0.29			0.45		to	2.00			4.91		to	3.30
12/31/2015		11,441,634		10.95	to		10.50		32,381,298		—			0.45		to	2.00			(2.98	)	to	(4.48	)
12/31/2014		11,037,640		11.28	to		11.00		30,107,695		1.04			0.45		to	2.00			7.35		to	5.70
TA PIMCO Tactical—Conservative Service Class
12/31/2018		5,429,191		11.77	to		1.04		20,340,485		3.26			0.20		to	2.50			(5.34	)	to	(7.47	)
12/31/2017		6,197,607		12.44	to		1.12		24,740,125		1.28			0.20		to	2.50			9.90		to	7.71
12/31/2016		7,056,786		11.29	to		10.67		24,094,824		0.44			0.45		to	2.00			4.51		to	2.90
12/31/2015		6,127,329		10.80	to		10.36		16,490,590		0.31			0.45		to	2.00			(2.52	)	to	(4.02	)
12/31/2014		5,302,381		11.08	to		10.80		10,002,783		1.31			0.45		to	2.00			8.24		to	6.57

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
TA PIMCO Tactical—Growth Service Class
12/31/2018		6,847,294	$	12.20	to	$	1.12	$	33,203,902		3.08	%		0.20	%	to	2.50	%		(7.87	)%	to	(9.95	)%
12/31/2017		7,566,104		13.24	to		1.24		37,085,031		0.41			0.20		to	2.50			14.31		to	12.03
12/31/2016		7,608,963		11.55	to		10.91		30,537,277		—			0.45		to	2.00			4.40		to	2.80
12/31/2015		7,697,689		11.07	to		10.62		28,486,728		—			0.45		to	2.00			(3.89	)	to	(5.37	)
12/31/2014		6,170,132		11.51	to		11.22		15,981,612		1.80			0.45		to	2.00			5.92		to	4.29
TA PIMCO Total Return Initial Class
12/31/2018		201,903		1.67	to		1.35		328,990		2.69			1.25		to	2.50			(1.89	)	to	(3.09	)
12/31/2017		209,554		1.70	to		1.39		348,545		—			1.25		to	2.50			3.59		to	2.33
12/31/2016		173,971		1.64	to		1.39		279,735		3.25			1.25		to	1.90			1.45		to	0.80
12/31/2015		184,212		1.62	to		1.38		292,408		2.68			1.25		to	1.90			(0.55	)	to	(1.19	)
12/31/2014		244,451		1.63	to		1.40		390,765		1.82			1.25		to	1.90			3.38		to	2.72
TA PIMCO Total Return Service Class
12/31/2018		26,993,438		10.46	to		9.86		70,767,725		2.43			0.20		to	2.50			(1.22	)	to	(3.48	)
12/31/2017		30,035,880		10.58	to		10.22		76,692,551		—			0.20		to	2.50			4.18		to	2.10
12/31/2016		33,634,576		10.14	to		9.58		76,869,825		2.22			0.45		to	2.00			2.02		to	0.45
12/31/2015		35,901,430		9.94	to		9.53		71,428,468		2.62			0.45		to	2.00			0.07		to	(1.47	)
12/31/2014		38,303,298		9.93	to		9.68		68,015,822		1.68			0.45		to	2.00			3.87		to	2.27
TA PineBridge Inflation Opportunities Service Class
12/31/2018		7,443,170		9.31	to		9.74		15,136,032		1.79			0.20		to	2.50			(1.74	)	to	(3.96	)
12/31/2017		8,592,127		9.48	to		10.14		15,394,034		0.22			0.20		to	2.50			2.67		to	0.62
12/31/2016		9,361,263		9.21	to		8.70		14,601,121		0.59			0.45		to	2.00			3.34		to	1.75
12/31/2015		10,242,463		8.91	to		8.55		14,060,193		1.26			0.45		to	2.00			(3.30	)	to	(4.79	)
12/31/2014		11,260,430		9.22	to		8.98		14,671,181		0.31			0.45		to	2.00			2.91		to	1.33
TA ProFunds UltraBear Service Class (OAM)
12/31/2018		35,358,102		0.04	to		7.06		1,498,950		—			1.00		to	2.50			5.48		to	3.91
12/31/2017		11,919,880		0.04	to		6.80		479,737		—			1.00		to	2.50			(33.00	)	to	(34.00	)
12/31/2016		18,800,019		0.06	to		0.06		1,139,167		—			1.00		to	1.95			(24.36	)	to	(25.04	)
12/31/2015		13,939,989		0.08	to		0.08		1,122,262		—			1.00		to	1.95			(8.20	)	to	(9.05	)
12/31/2014		4,425,558		0.09	to		0.09		390,086		—			1.00		to	1.95			(26.32	)	to	(27.01	)
TA QS Investors Active Asset Allocation—Moderate Service Class
12/31/2018		22,998,302		11.56	to		1.10		83,488,938		1.45			0.20		to	2.50			(4.36	)	to	(6.55	)
12/31/2017		25,368,039		12.09	to		1.18		93,891,791		1.53			0.20		to	2.50			14.93		to	12.64
12/31/2016		28,275,068		10.50	to		9.92		89,329,578		1.21			0.45		to	2.00			1.73		to	0.17
12/31/2015		32,742,037		10.32	to		9.90		95,406,942		0.98			0.45		to	2.00			(4.71	)	to	(6.17	)
12/31/2014		33,943,565		10.83	to		10.55		95,420,430		0.66			0.45		to	2.00			3.15		to	1.56
TA QS Investors Active Asset Allocation—Conservative Service Class
12/31/2018		7,176,393		11.34	to		1.04		21,945,243		1.59			0.20		to	2.50			(3.08	)	to	(5.30	)
12/31/2017		8,365,097		11.70	to		1.09		26,090,564		1.73			0.20		to	2.50			11.20		to	8.98
12/31/2016		9,783,495		10.50	to		9.92		25,125,769		1.26			0.45		to	2.00			2.19		to	0.62
12/31/2015		11,470,352		10.27	to		9.85		26,610,104		1.00			0.45		to	2.00			(2.80	)	to	(4.29	)
12/31/2014		12,551,291		10.57	to		10.30		24,423,931		1.05			0.45		to	2.00			3.14		to	1.55
TA QS Investors Active Asset Allocation—Moderate Growth Service Class
12/31/2018		12,229,813		11.86	to		1.08		48,723,711		1.30			0.20		to	2.50			(6.14	)	to	(8.29	)
12/31/2017		14,109,933		12.63	to		1.18		57,992,860		1.27			0.20		to	2.50			19.77		to	17.38
12/31/2016		15,556,628		10.52	to		9.94		53,011,793		1.06			0.45		to	2.00			1.51		to	(0.05	)
12/31/2015		18,408,252		10.37	to		9.95		58,624,473		1.03			0.45		to	2.00			(6.95	)	to	(8.39	)
12/31/2014		19,144,493		11.14	to		10.86		55,073,814		0.82			0.45		to	2.00			2.76		to	1.18
TA Small/Mid Cap Value Initial Class
12/31/2018		287,183		15.23	to		11.81		2,775,440		0.91			0.45		to	1.55			(11.86	)	to	(12.82	)
12/31/2017		295,652		17.28	to		13.54		3,307,890		1.11			0.45		to	1.55			15.04		to	13.79
12/31/2016		320,871		15.02	to		11.90		3,209,500		0.76			0.45		to	1.55			20.58		to	19.28
12/31/2015		358,219		12.46	to		9.98		3,066,345		1.02			0.45		to	1.55			(2.95	)	to	(4.00	)
12/31/2014		378,313		12.83	to		10.39		3,330,797		0.79			0.45		to	1.55			4.75		to	3.62

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio** Lowest to Highest						Total Return*** Corresponding to Lowest to Highest Expense Ratio
TA Small/Mid Cap Value Service Class
12/31/2018		3,210,853	$	14.84	to	$	9.54	$	11,101,674		0.67	%		0.20	%	to	2.50	%		(11.81	)%	to	(13.81	)%
12/31/2017		3,407,142		16.83	to		11.07		12,762,113		0.98			0.20		to	2.50			14.23		to	12.46
12/31/2016		3,406,282		14.63	to		14.06		10,341,703		0.55			0.90		to	2.00			19.73		to	18.42
12/31/2015		3,497,356		12.22	to		11.87		8,150,627		0.82			0.90		to	2.00			(3.60	)	to	(4.66	)
12/31/2014		3,341,690		12.68	to		12.45		7,605,510		0.64			0.90		to	2.00			3.99		to	2.86
TA T. Rowe Price Small Cap Initial Class
12/31/2018		67,882		17.50	to		2.91		301,771		—			0.45		to	2.50			(7.50	)	to	(9.36	)
12/31/2017		75,660		18.92	to		3.21		369,816		—			0.45		to	2.50			21.84		to	19.41
12/31/2016		65,922		15.53	to		2.59		265,399		—			0.45		to	1.90			10.72		to	9.15
12/31/2015		78,635		14.03	to		2.38		261,501		—			0.45		to	1.90			1.97		to	0.52
12/31/2014		153,368		13.75	to		2.36		295,834		—			0.45		to	1.90			6.07		to	4.56
TA T. Rowe Price Small Cap Service Class
12/31/2018		4,826,212		17.06	to		10.63		30,144,074		—			0.20		to	2.50			(7.47	)	to	(9.56	)
12/31/2017		5,550,914		18.43	to		11.75		37,625,384		—			0.20		to	2.50			20.93		to	19.05
12/31/2016		5,742,239		15.14	to		14.55		29,755,780		—			0.90		to	2.00			10.01		to	8.81
12/31/2015		5,862,406		13.76	to		13.37		24,844,869		—			0.90		to	2.00			1.24		to	0.13
12/31/2014		5,746,945		13.60	to		13.35		22,421,531		—			0.90		to	2.00			5.29		to	4.14
TA Torray Concentrated Growth Initial Class
12/31/2018		222,852		16.33	to		2.15		1,505,064		0.23			0.45		to	2.50			(4.00	)	to	(5.93	)
12/31/2017		225,789		17.01	to		2.29		1,603,700		0.38			0.45		to	2.50			24.16		to	21.69
12/31/2016		240,921		13.70	to		2.05		1,386,531		0.46			0.45		to	1.90			6.26		to	4.75
12/31/2015		300,767		12.90	to		1.95		1,647,122		0.54			0.45		to	1.90			(2.01	)	to	(3.41	)
12/31/2014		312,882		13.16	to		2.02		1,765,697		0.86			0.45		to	1.90			9.50		to	7.94
TA Torray Concentrated Growth Service Class
12/31/2018		690,701		15.90	to		11.19		2,621,042		—			0.20		to	2.50			(4.06	)	to	(6.22	)
12/31/2017		762,171		16.57	to		11.94		3,107,074		0.15			0.20		to	2.50			23.30		to	21.39
12/31/2016		854,672		13.35	to		12.83		2,608,184		0.14			0.90		to	2.00			5.52		to	4.37
12/31/2015		938,864		12.65	to		12.29		2,541,038		0.35			0.90		to	2.00			(2.72	)	to	(3.78	)
12/31/2014		3,902,173		13.00	to		12.77		9,918,986		0.70			0.90		to	2.00			8.76		to	7.57
TA TS&W International Equity Initial Class
12/31/2018		282,345		11.18	to		1.49		605,509		2.36			0.45		to	2.50			(15.90	)	to	(17.60	)
12/31/2017		296,543		13.29	to		1.81		765,459		2.19			0.45		to	2.50			22.36		to	19.92
12/31/2016		316,110		10.86	to		1.49		672,352		2.65			0.45		to	1.90			0.63		to	(0.80	)
12/31/2015		374,274		10.80	to		1.50		777,937		2.98			0.45		to	1.90			0.86		to	(0.57	)
12/31/2014		425,897		10.70	to		1.51		886,720		2.39			0.45		to	1.90			(5.61	)	to	(6.95	)
TA TS&W International Equity Service Class
12/31/2018		689,255		10.89	to		9.85		2,850,415		2.00			0.20		to	2.50			(15.87	)	to	(17.77	)
12/31/2017		763,813		12.94	to		11.98		3,615,192		2.00			0.20		to	2.50			21.56		to	19.68
12/31/2016		695,271		10.58	to		10.16		2,505,044		2.57			0.90		to	2.00			(0.13	)	to	(1.22	)
12/31/2015		659,509		10.59	to		10.29		2,459,651		3.18			0.90		to	2.00			0.13		to	(0.96	)
12/31/2014		597,875		10.58	to		10.39		1,710,204		2.32			0.90		to	2.00			(6.23	)	to	(7.25	)
TA U.S. Equity Index Service Class
12/31/2018		542,868		10.69	to		10.29		5,693,818		0.25			0.35		to	2.65			(5.32	)	to	(7.46	)
12/31/2017⁽¹⁾		81,862		11.29	to		11.12		918,226		—			0.35		to	2.65			—		to	—
TA WMC US Growth Initial Class
12/31/2018		1,524,500		18.63	to		2.29		2,666,025		0.48			0.45		to	2.50			(0.24	)	to	(2.25	)
12/31/2017		1,688,314		18.68	to		2.35		3,010,710		0.41			0.45		to	2.50			28.62		to	26.06
12/31/2016		1,806,388		14.52	to		1.89		2,506,822		0.40			0.45		to	1.90			2.35		to	0.90
12/31/2015		2,057,869		14.19	to		1.87		2,814,938		0.71			0.45		to	1.90			6.37		to	4.86
12/31/2014		2,344,356		13.34	to		1.78		3,041,752		0.87			0.45		to	1.90			10.61		to	9.03

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio Lowest to Highest**						Total Return* Corresponding to** Lowest to Highest Expense Ratio
TA WMC US Growth Service Class
12/31/2018		4,196,509	$	18.15	to	$	12.05	$	20,207,482		0.27	%		0.20	%	to	2.50	%		(0.23	)%	to	(2.49	)%
12/31/2017		4,828,655		18.19	to		12.36		22,079,032		0.21			0.20		to	2.50			27.71		to	25.73
12/31/2016		4,989,273		14.15	to		13.60		16,149,242		0.17			0.90		to	2.00			1.62		to	0.52
12/31/2015		5,171,418		13.92	to		13.53		14,352,790		0.42			0.90		to	2.00			5.66		to	4.50
12/31/2014		1,038,319		13.18	to		12.94		2,909,622		0.69			0.90		to	2.00			9.84		to	8.64
Vanguard^® Equity Index
12/31/2018		54,305		17.04	to		16.76		917,606		1.65			0.65		to	1.20			(5.13	)	to	(5.65	)
12/31/2017		54,305		17.96	to		17.77		968,675		1.78			0.65		to	1.20			20.87		to	20.45
12/31/2016		54,305		14.86	to		14.67		802,610		2.21			0.65		to	1.00			11.09		to	10.70
12/31/2015		54,305		13.38	to		13.25		723,578		1.78			0.65		to	1.00			0.61		to	0.26
12/31/2014		—		13.30	to		13.22		—		—			0.65		to	1.00			12.77		to	12.38
Vanguard^® International
12/31/2018		41,630		13.38	to		13.16		552,283		0.77			0.65		to	1.20			(13.18	)	to	(13.66	)
12/31/2017		42,242		15.41	to		15.24		646,515		1.06			0.65		to	1.20			41.75		to	41.26
12/31/2016		42,274		10.87	to		10.73		457,069		1.41			0.65		to	1.00			1.22		to	0.87
12/31/2015		40,206		10.74	to		10.64		430,009		2.00			0.65		to	1.00			(1.41	)	to	(1.76	)
12/31/2014		—		10.89	to		10.83		—		—			0.65		to	1.00			(6.66	)	to	(6.99	)
Vanguard^® Mid-Cap Index
12/31/2018		—		15.39	to		15.14		—		—			0.65		to	1.20			(9.92	)	to	(10.42	)
12/31/2017		—		17.09	to		16.90		—		—			0.65		to	1.20			18.31		to	17.90
12/31/2016		—		14.44	to		14.26		—		—			0.65		to	1.00			10.40		to	10.01
12/31/2015		—		13.08	to		12.96		—		—			0.65		to	1.00			(2.07	)	to	(2.42	)
12/31/2014		—		13.36	to		13.28		—		—			0.65		to	1.00			12.86		to	12.46
Vanguard^® Real Estate Index
12/31/2018		—		12.32	to		12.12		—		—			0.65		to	1.20			(5.97	)	to	(6.49	)
12/31/2017		—		13.10	to		12.96		—		—			0.65		to	1.20			4.10		to	3.74
12/31/2016		—		12.59	to		12.43		—		—			0.65		to	1.00			7.66		to	7.28
12/31/2015		—		11.69	to		11.58		—		—			0.65		to	1.00			1.56		to	1.21
12/31/2014		—		11.51	to		11.45		—		—			0.65		to	1.00			29.27		to	28.82
Vanguard^® Short-Term Investment Grade
12/31/2018		—		10.53	to		10.36		—		—			0.65		to	1.20			0.38		to	(0.17	)
12/31/2017		—		10.49	to		10.38		—		—			0.65		to	1.20			1.43		to	1.08
12/31/2016		—		10.34	to		10.21		—		—			0.65		to	1.00			2.05		to	1.70
12/31/2015		—		10.13	to		10.04		—		—			0.65		to	1.00			0.47		to	0.12
12/31/2014		—		10.08	to		10.03		—		—			0.65		to	1.00			1.10		to	0.74
Vanguard^® Total Bond Market Index
12/31/2018		34,255		10.49	to		10.32		356,183		2.30			0.65		to	1.20			(0.78	)	to	(1.33	)
12/31/2017		34,255		10.57	to		10.46		359,524		2.36			0.65		to	1.20			2.81		to	2.45
12/31/2016		34,255		10.28	to		10.15		350,212		2.27			0.65		to	1.00			1.81		to	1.45
12/31/2015		34,255		10.10	to		10.00		344,505		2.44			0.65		to	1.00			(0.32	)	to	(0.66	)
12/31/2014		—		10.13	to		10.07		—		—			0.65		to	1.00			5.21		to	4.84
Voya Global Perspectives Class S Shares
12/31/2018		—		10.01	to		9.70		—		—			1.29		to	2.14			(8.66	)	to	(9.44	)
12/31/2017		—		10.96	to		10.72		—		—			1.29		to	2.14			13.25		to	12.29
12/31/2016		—		9.68	to		9.54		—		—			1.29		to	2.14			5.19		to	4.30
12/31/2015⁽¹⁾		—		9.20	to		9.15		—		—			1.29		to	2.14			—		to	—
Voya Large Cap Value Class S Shares
12/31/2018		—		10.56	to		10.24		—		—			1.29		to	2.14			(9.19	)	to	(9.96	)
12/31/2017		—		11.63	to		11.37		—		—			1.29		to	2.14			11.78		to	10.84
12/31/2016		—		10.40	to		10.26		—		—			1.29		to	2.14			12.13		to	11.18
12/31/2015⁽¹⁾		—		9.28	to		9.23		—		—			1.29		to	2.14			—		to	—

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

5. Financial Highlights (continued)


	At December 31									For the Year Ended December 31
Subaccount	Units		Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*			Expense Ratio Lowest to Highest**						Total Return* Corresponding to Lowest to Highest Expense Ratio**
Voya Strategic Allocation Conservative Class S Shares
12/31/2018		—	$	10.28	to	$	9.97	$	—		—	%		1.29	%	to	2.14	%		(5.49	)%	to	(6.29	)%
12/31/2017		—		10.88	to		10.64		—		—			1.29		to	2.14			8.77		to	7.86
12/31/2016		—		10.00	to		9.86		—		—			1.29		to	2.14			4.12		to	3.25
12/31/2015⁽¹⁾		—		9.61	to		9.55		—		—			1.29		to	2.14			—		to	—
Voya Strategic Allocation Moderate Class S Shares
12/31/2018		—		10.41	to		10.09		—		—			1.29		to	2.14			(7.52	)	to	(8.31	)
12/31/2017		—		11.26	to		11.01		—		—			1.29		to	2.14			12.83		to	11.88
12/31/2016		—		9.98	to		9.84		—		—			1.29		to	2.14			4.96		to	4.07
12/31/2015⁽¹⁾		—		9.51	to		9.45		—		—			1.29		to	2.14			—		to	—
Wanger International
12/31/2018		—		11.16	to		11.00		—		—			0.45		to	0.90			(18.07	)	to	(18.44	)
12/31/2017		—		13.62	to		13.49		—		—			0.45		to	0.90			32.32		to	31.86
12/31/2016		—		10.30	to		10.16		—		—			0.45		to	0.80			(1.85	)	to	(2.19	)
12/31/2015		—		10.49	to		10.39		—		—			0.45		to	0.80			(0.35	)	to	(0.70	)
12/31/2014		—		10.53	to		10.47		—		—			0.45		to	0.80			(4.83	)	to	(5.17	)
Wanger USA
12/31/2018		—		16.75	to		16.52		—		—			0.45		to	0.90			(1.91	)	to	(2.35	)
12/31/2017		—		17.08	to		16.91		—		—			0.45		to	0.90			19.05		to	18.63
12/31/2016		—		14.35	to		14.17		—		—			0.45		to	0.80			13.18		to	12.78
12/31/2015		—		12.68	to		12.56		—		—			0.45		to	0.80			(1.06	)	to	(1.40	)
12/31/2014		—		12.81	to		12.74		—		—			0.45		to	0.80			4.31		to	3.95

⁽¹⁾

See footnote 1

***

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

6. Administrative and Mortality and Expense Risk Charges

TFLIC deducts a daily administrative charge equal to an annual rate of 0.15% of the daily net assets value of each subaccount for administrative expenses. TFLIC also deducts an annual charge during the accumulation phase, not to exceed $35, proportionately from the subaccounts’ unit values. An annual charge ranging from 0.05% to 2.65% is deducted (based on the death benefit selected) from the unit values of the subaccounts of the Separate Account for TFLIC’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 that is based on their actual policy:


Subaccount	Facilitation Fee Assessed
AB Balanced Wealth Strategy Class B Shares		0.20	%
AB Growth and Income Class B Shares		0.20	%
American Funds - Asset Allocation Class 2 Shares		0.30% - 0.40	%
American Funds - Bond Class 2 Shares		0.30% - 0.40	%
American Funds - Growth Class 2 Shares		0.30% - 0.40	%
American Funds - Growth-Income Class 2 Shares		0.30% - 0.40	%
American Funds - International Class 2 Shares		0.30% - 0.40	%
Fidelity^® VIP Balanced Service Class 2		0.20	%
Fidelity^® VIP Contrafund^® Initial Class		0.20	%
Fidelity^® VIP Contrafund^® Service Class 2		0.20	%
Fidelity^® VIP Mid Cap Initial Class		0.20	%
Fidelity^® VIP Mid Cap Service Class 2		0.20	%
Fidelity^® VIP Value Strategies Initial Class		0.20	%
Fidelity^® VIP Value Strategies Service Class 2		0.20	%
Franklin Founding Funds Allocation Class 4 Shares		0.15	%
State Street Total Return V.I.S. Class 3 Shares		0.20	%
TA International Equity Index Service Class		0.15	%
TA U.S. Equity Index Service Class		0.15	%
Vanguard^® Equity Index		0.20% - 0.60	%
Vanguard^® International		0.20% - 0.60	%
Vanguard^® Mid-Cap Index		0.20% - 0.60	%
Vanguard^® Real Estate Index		0.20% - 0.60	%
Vanguard^® Short-Term Investment Grade		0.20% - 0.60	%
Vanguard^® Total Bond Market Index		0.20% - 0.60	%
Voya Global Perspectives Class S Shares		0.14	%
Voya Large Cap Value Class S Shares		0.14	%
Voya Strategic Allocation Conservative Class S Shares		0.14	%
Voya Strategic Allocation Moderate Class S Shares		0.14	%
Wanger International		0.30	%
Wanger USA		0.30	%

7. Income Tax

Operations of the Separate Account form a part of TFLIC, 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 TFLIC 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 TFLIC. Under existing federal income tax laws, the income of the Separate Account is not taxable to TFLIC, as long as earnings are credited under the variable annuity contracts.

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2018

8. Subsequent Events

9. Related Parties

Transamerica Capital, Inc. (“TCI”), a wholesaling broker-dealer, is an affiliated entity of TFLIC and an indirect wholly owned subsidiary of AEGON N.V. TCI distributes TFLIC’s products through broker-dealers and other financial intermediaries.

The subaccounts invest in the mutual funds listed in Footnote 1. These investments include funds managed by Transamerica Asset Management, Inc. (“TAM”). Transamerica Fund Services, Inc. (“TFS”) serves as a transfer agent to TAM, and AEGON USA Asset Management Holding, LLC (“AAM”) serves as a sub-advisor for certain funds managed by TAM. TAM, TFS and AAM are affiliated entities of TFLIC and indirect wholly owned subsidiaries of AEGON N.V. Funds managed by TAM are identified by their fund name, which includes reference to Aegon, Transamerica or both. The Separate Account pays management fees to the related funds as detailed in the fund prospectus.

No charges other than those disclosed in Footnote 6 are deducted for the service rendered by related parties.

Contract owners may transfer funds between available subaccount options within the Separate Account. These transfers are performed at unit value at the time of the transfer.


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

	(2)		Not Applicable.

	(3)	(a)	Not Applicable.

		(b)	Form of Broker/Dealer and Sales Agreement. Note 1

	(4)	(a)	Form of Policy. Note 9

		(b)	Form of Policy Rider (GMDB). Note 9

	(5)	(a)	Form of Application. Note 9

	(6)	(a)	Articles of Incorporation of Transamerica Life Insurance Company. Note 2

		(b)	Bylaws of Transamerica Life Insurance Company. Note 2

	(7)		Reinsurance Agreements. Not Applicable

	(8)	(a)	Participation Agreement (Vanguard). Note 3

		(a)(1)	Seventh Amendment to Participation Agreement (Vanguard). Note 4

		(a)(2)	Eighth Amendment to Participation Agreement (Vanguard). Note 4

		(a)(3)	Ninth Amendment to Participation Agreement (Vanguard). Note 5

		(a)(4)	Amended Schedule A to Participation Agreement dated May 1, 2017 (Vanguard). Note 6

		(a)(5)	Amended Schedule A to Participation Agreement dated September 22, 2017 (Vanguard). Note 7

	(8)	(b)	Participation Agreement (DFA). Note 8

		(b)(1)	Amendment to Participation Agreement (DFA). Note 8

		(b)(2)	Amendment No. 3 to Participation Agreement (DFA). Note 9

	(9)		Opinion and Consent of Counsel. Note 9

	(10)		Consent of Independent Registered Public Accounting Firm. Note 9

	(11)		Not applicable.


	(12)	Not applicable.

	(13)	Powers of Attorney. (Blake S. Bostwick, Eric J. Martin, Mark W. Mullin, Jay Orlandi, David Schulz, C. Michiel van Katwijk) Note 8

Note 1.	Incorporated herein by reference to the Initial Filing of Form N-4 Registration Statement (File No. 333-185573) filed on December 20, 2012.

Note 2.	Incorporated herein by reference to the Initial Filing of Form N-4 Registration Statement (File No. 333-169445) filed on September 17, 2010.

Note 3.	Incorporated herein by reference to Pre-Effective Amendment No. 1 to Form N-6 Registration Statement (File No. 333-109579) filed on January 16, 2004.

Note 4.	Incorporated herein by reference to the Initial Filing of Form N-4 Registration Statement (File No. 333-186031) filed on January 15, 2013.

Note 5.	Incorporated herein by reference to Post-Effective Amendment No. 4 to Form N-4 Registration Statement (File No. 333-186031) filed on April 29, 2014.

Note 6.	Incorporated herein by reference to Post-Effective Amendment No. 10 to Form N-4 Registration Statement (File No. 333-186031) filed on April 24, 2017.

Note 7.	Incorporated herein by reference to Post-Effective Amendment No. 11 to Form N-4 Registration Statement (File No. 333-186031) filed on April 30, 2018.

Note 8.	Incorporated herein by reference to the Initial Filing of Form N-4 Registration Statement (File No. 333-233812) filed on September 18, 2019.

Note 9.	Filed herewith.

Item 25.

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


Name and Business Address		Principal Positions and Offices with Depositor
Blake S. Bostwick 1801 California St. Suite 5200 Denver, CO 80202		Director and President

Eric J. Martin 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499		Controller and Senior Vice President

Mark W. Mullin 100 Light Street Baltimore, MD 21202		Director and Chairman of the Board

Jay Orlandi 100 Light Street Baltimore, MD 21202		Director, Executive Vice President, Secretary and General Counsel

David Schulz 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499		Director, Chief Tax Officer and Senior Vice President

C. Michiel van Katwijk 100 Light Street Baltimore, MD 21202		Director, Chief Financial Officer, Executive Vice President and Treasurer

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 Affordable Housing Debt Fund I, LLC	Delaware	Members: AHDF Manager I, LLC (0.01%), Mangaging Member; Transamerica Life Insurance Company (5%); non-AEGON affiliates: Dominium Taxable Fund I, LLC (94.99%)	Affordable housing loans

Aegon Affordable Housing Debt Fund II, LLC	Delaware	Members: Manager Member—AHDF Manager II, LLC (0.01%); Transamerica Life Insurance Company (99.99%)	Affordable housing loans

Aegon Affordable Housing Debt Fund III, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Affordable housing loans

AEGON AM Funds, LLC	Delaware	AEGON USA Investment Management, LLC is the Manager; equity will be owned by clients/investors of AEGON USA Investment Management, LLC	To serve as a fund for a client and offer flexilbility to accommodate other similarly situated clients.

AEGON Asset Management Services, Inc.	Delaware	100% AUSA Holding, LLC	Registered investment advisor

Aegon Community Investments 50, LLC	Delaware	Members: Aegon Community Investments 50, LLC (0.10%); Transamerica Financial Life Insurance Company (25.49750%); Transamerica Premier Life Insurance Company (25.49750%); non-AEGON affiliate, Citibank, N.A. (48.9950%)	Investments

Aegon Community Investments 51, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Aegon Community Investments 52, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Aegon Community Investments 53, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Aegon Community Investments 54, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Aegon Community Investments 55, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments

Aegon Community Investments 56, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments

Aegon Community Investments 57, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Aegon Community Investments 58, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Aegon Community Investments 59, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Aegon Community Investments 60, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AEGON Direct Marketing Services, Inc.	Maryland	Transamerica Premier Life Insurance Company owns 103,324 shares; Commonwealth General Corporation owns 37,161 shares	Marketing company

AEGON Direct Marketing Services International, LLC	Maryland	100% AUSA Holding, LLC	Marketing arm for sale of mass marketed insurance coverage

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 Energy Management, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Investments

AEGON Financial Services Group, Inc.	Minnesota	100% Transamerica Life Insurance Company	Marketing

AEGON Funding Company, LLC.	Delaware	Sole Member: Transamerica Corporation	Issue debt securities-net proceeds used to make loans to affiliates

Aegon Global Services, LLC	Iowa	Sole Member: Commonwealth General Corporation	Holding company

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 LIHTC Fund 50, LLC	Delaware	Members: Aegon Community Investments 50, LLC (0.01%); Transamerica Financial Life Insurance Company (25.49750%); Transamerica Premier Life Insurance Company (25.49750%); non-affiliate of AEGON, Citibank, N.A. (48.9950%)	Investments

Aegon LIHTC Fund 51, LLC	Delaware	Members: Aegon Community Investments 51, LLC (.01%) as Managing Member; non-affiliate of AEGON, Citibank, N.A. (99.99%)	Investments

Aegon LIHTC Fund 52, LLC	Delaware	Members: Transamerica Financial Life Insurance Company (10.18%); Transamerica Life Insurance Company (1%); Managing Member—Aegon Community Investments 52, LLC (0.01%); non-affiliates of AEGON, Citibank, N.A. (49%); California Bank & Trust (5.21%); Pacific West Bank (7.58%); Ally Bank (11.35%); US Bank (7.58%); Bank of the West (7.46%)	Investments

Aegon LIHTC Fund 54, LLC	Delaware	Sole Member: Aegon Community Investments 54, LLC	Investments


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Aegon LIHTC Fund 55, LLC	Delaware	Members: Investor Member—Transamerica Premier Life Insurance Company (2.8195%); non-affiliates of AEGON, Citibank, N.A. (21.6890%), Ally Bank (8.2090%), Bank of Hope (14.2687%), Lake City Bank (1.4679%), Securian (MLIC) (7.4614%), The Guardian Life Insurance Company of America (10.4477%), U.S. Bancorp Community Development Corporation (22.0987%), ZB National Association (1.8110%). Managing Member—Aegon Community Investments 55, LLC (0.0100%).	Investments

Aegon LIHTC Fund 57, LLC	Delaware	Members: Managing Member—Aegon Community Investments 57, LLC (.01%); non-affiliate of AEGON, Bank of America, N.A. as investor Member (99.99%)	Investments

Aegon LIHTC Fund 58, LLC	Delaware	Sole Member: Aegon Community Investments 58, LLC	Investments

Aegon LIHTC Fund 60, LLC	Delaware	Sole Member: Aegon Community Investments 60, LLC	Investments

AEGON Managed Enhanced Cash, LLC	Delaware	Members: Transamerica Life Insurance Company (86.3973%) ; Transamerica Premier Life Insurance Company (13.6027%)	Investment vehicle for securities lending cash collateral

AEGON Management Company	Indiana	100% Transamerica Corporation	Holding company

Aegon Market Neutral Income Fund, LLC	Delaware	AEGON USA Investment Management, LLC is the sole Member until the first investor buys in, then the entity will be managed by a 3-Member Board of Managers.	Investments

Aegon Multi-Family Equity Fund, LLC	Delaware	Members: Transamerica Life Insurance Company (63%); Transamerica Financial Life Insurance Company (20%); Transamerica Premier Life Insurance Company (17%); Non-Member Manager—AMFETF Manager, LLC (0%)	Investments

Aegon Opportunity Zone Fund Joint Venture 1, LLC	Delaware	Sole Member: Aegon OZF Investments 1, LLC	Investments

Aegon OZF Investments 1, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Investments

Aegon Upsream Energy Fund, LLC	Delaware	Sole Member: AEGON Energy Management, LLC	Investments

AEGON USA Asset Management Holding, LLC	Iowa	Sole Member: AUSA Holding, LLC	Holding company

AEGON USA Investment Management, LLC	Iowa	Sole Member: 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 Workforce Housing Fund 2 Holding Company, LLC	Delaware	Sole Member: Aegon Workforce Housing Fund 2, LP	Holding company

Aegon Workforce Housing Fund 2, LP	Delaware	General Partner is AWHF2 General Partner, LLC. Fund Partners: Transamerica Life Insurance Company (63%), Transamerica Financial Life Insurance Company (20%) and Transamerica Premier Life Insurance Company (17%)	Investments

Aegon Workforce Housing Fund 3 Holding Company, LLC	Delaware	Sole Member: Aegon Workforce Housing Fund 3, LP	Holding company

Aegon Workforce Housing Fund 3, LP	Delaware	General Partner is AWHF3 General Partner, LLC. Fund Partners: Transamerica Life Insurance Company (63%), Transamerica Financial Life Insurance Company (20%) and Transamerica Premier Life Insurance Company (17%)	Investments

AFSG Securities Corporation	Pennsylvania	100% Commonwealth General Corporation	Inactive

AHDF Manager I, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Investments

AHDF Manager II, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Investments

AHDF Manager III, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Investments

ALH Properties Eight LLC	Delaware	Sole Member: FGH USA LLC	Real estate

ALH Properties Eleven LLC	Delaware	Sole Member: FGH USA LLC	Real estate

ALH Properties Four LLC	Delaware	Sole Member: FGH USA LLC	Real estate

ALH Properties Nine LLC	Delaware	Sole Member: FGH USA LLC	Real estate

ALH Properties Seven LLC	Delaware	Sole Member: FGH USA LLC	Real estate

ALH Properties Seventeen LLC	Delaware	Sole Member: FGH USA LLC	Real estate

ALH Properties Sixteen LLC	Delaware	Sole Member: FGH USA LLC	Real estate

ALH Properties Ten LLC	Delaware	Sole Member: FGH USA LLC	Real estate

ALH Properties Twelve LLC	Delaware	Sole Member: FGH USA LLC	Real estate

ALH Properties Two LLC	Delaware	Sole Member: FGH USA LLC	Real estate

AMFETF Manager, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Investments

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


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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

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

Apollo Housing Capital Arrowhead Gardens, LLC	Delaware	Sole Member: Garnet LIHTC Fund XXXV, LLC	Affordable housing

AUIM Credit Opportunities Fund, LLC	Delaware	Members: AEGON USA Invesmtent Management, LLC (98.36%); non-affiliate of AEGON (1.64%)	Investment vehicle

AUSA Holding, LLC	Maryland	Sole Member: 100% Transamerica Corporation	Holding company

AUSA Properties, Inc.	Iowa	100% AEGON USA Realty Advisors, LLC	Own, operate and manage real estate

AWHF2 General Partner, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Investments

AWHF3 General Partner, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Investments


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

Barfield Ranch Associates, LLC	Florida	Members: Mitigation Manager, LLC (50%); non-affiliate of AEGON, OBPFL-Barfield, LLC (50%)	Investments

Bay Area Community Investments I, LP	California	Partners: 69.995% Transamerica Life Insurance Company; 29.995% Transamerica Premier Life Insurance Company; 0.01% Transamerica Affordable housing, Inc.	Investments in low income housing tax credit properties

Bay State Community Investments I, LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Investments in low income housing tax credit properties

Bay State Community Investments II, LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Investments in low income housing tax credit properties

Carle Place Leasehold SPE, LLC	Delaware	Sole Member: Transamerica Financial Life Insurance Company	Lease holder

Cedar Funding, Ltd.	Cayman Islands	100% Transamerica Life Insurance Company	Investments

Commonwealth General Corporation	Delaware	100% Transamerica Corporation	Holding company

Creditor Resources, Inc.	Michigan	100% AUSA Holding, LLC	Credit insurance

CRI Solutions Inc.	Maryland	100% Creditor Resources, Inc.	Sales of reinsurance and credit insurance

Cupples State LIHTC Investors, LLC	Delaware	Sole Member: Garnet LIHTC Fund VIII, LLC	Investments

FD TLIC, Limited Liability Company	New York	100% Transamerica Life Insurance Company	Broadway production

FGH Realty Credit LLC	Delaware	Sole Member: FGH USA, LLC	Real estate

FGH USA LLC	Delaware	Sole Member: RCC North America LLC	Real estate

FGP 90 West Street LLC	Delaware	Sole Member: FGH USA LLC	Real estate

FGP West Street LLC	Delaware	Sole Member: FGP West Mezzanine LLC	Real estate

Fifth FGP LLC	Delaware	Sole Member: FGH USA LLC	Real estate

Financial Planning Services, Inc.	District of Columbia	100% Commonwealth General Corporation	Management services

First FGP LLC	Delaware	Sole Member: FGH USA LLC	Real estate

Fourth FGP LLC	Delaware	Sole Member: 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	Sole Member: Transamerica Premier Life Insurance Company	Investments


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet Community Investments III, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Business investments

Garnet Community Investments IV, LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Investments

Garnet Community Investments V, LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Investments

Garnet Community Investments VI, LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Investments

Garnet Community Investments VII, LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Investments

Garnet Community Investments VIII, LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Investments

Garnet Community Investments IX, LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Investments

Garnet Community Investments X, LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Investments

Garnet Community Investments XI, LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Investments

Garnet Community Investments XII, LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Investments

Garnet Community Investments XVIII, LLC	Delaware	Sole Member: 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	Investments

Garnet Community Investments XXV, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments

Garnet Community Investment XXVI, LLC	Delaware	Sole Member: 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

Garnet Community Investments XXXIV, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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 Community Investments XXXVII, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments

Garnet Community Investments XXXVIII, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments

Garnet Community Investments XXXIX, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments

Garnet Community Investments XL, LLC	Delaware	Sole Member—Transamerica Life Insurance Company	Investments

Garnet Community Investments XLI, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Garnet Community Investments XLII, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Garnet Community Investments XLIII, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Garnet Community Investments XLIV, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Garnet Community Investments XLVI, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Garnet Community Investments XLVII, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Garnet Community Investments XLVIII, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Garnet Community Investments XLIX, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Garnet ITC Fund XLIII, LLC	Delaware	Members: Garnet Community Investments XLIII, LLC (0%) asset Manager: non-affiliate of AEGON, Solar TC Corp. (100%) investor Member	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 (99.99%); Transamerica Life Insurance Company (0.01%)	Investments


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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 (99.99%); Transamerica Life Insurance Company (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 (99.99%); Transamerica Life Insurance Company (0.01%)	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 (99.99%) and Transamerica Life Insurance Company (0.01%)	Investments

Garnet LIHTC Fund XII, LLC	Delaware	Members: 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	Members: 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	Members: 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	Members: Garnet Community Investments XII, LLC (.01%); NorLease, Inc., a non-AEGON affiliate (99.99%)	Investments

Garnet LIHTC Fund XIII, LLC	Delaware	Members: 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	Members: 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	Members: Garnet Community Investments XII, LLC (.01%); NorLease, Inc., a non-AEGON affiliate (99.99%)	Investments

Garnet LIHTC Fund XIV, LLC	Delaware	Members: 0.01% Garnet Community Investments, LLC (0.01%); Wells Fargo Bank, N.A. (49.995%); and Goldenrod Asset Management, Inc.(49.995%), both non-AEGON affiliates	Investments


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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%); Special Situations Investing Group II, LLC, a non-affiliate of AEGON (99.99%)	Investments

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	Sole Member: 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 (21.73%) 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


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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 Bank and Trust Company (18.1714%)	Investments

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%)	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	Members: 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	Sole Member: Garnet Community Investments XXXVII, LLC.	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: Garnet Community Investments XXXIV, LLC (99.99%) and Transamerica Premier Life Insurance Company (0.01%)	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	Members: Garnet Community Investments XXXVI, LLC (1%) as managing Member; JPM Capital Corporation, a non-AEGON affiliate (99%) as investor Member	Investments

Garnet LIHTC Fund XXXVII, LLC	Delaware	Members: Garnet Community Investments XXXVII, LLC (.01%); LIH Realty Corporation, a non-AEGON affiliate (99.99%)	Investments


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund XXXVIII, LLC	Delaware	Members: Garnet Community Investments XXXVIII, LLC, non-Member Manager; non-affiliate of AEGON, Norlease, Inc. (100%)	Investments

Garnet LIHTC Fund XXXIX, LLC	Delaware	Members: Garnet Community Investments XXXIX, LLC at 1% managing Member and non-AEGON affiliate, FNBC Leasing Corporation as the 99% investor Member.	Investments

Garnet LIHTC Fund XL, LLC	Delaware	Members: Garnet Community Investments XL, LLC as a .01% Member and non-AEGON affiliate, Partner Reinsurance Company of the U.S. as the 99.99% Member.	Investments

Garnet LIHTC Fund XLI, LLC	Delaware	Members: Transamerica Life Insurance Company (9.990%) and Garnet Community Investments XLI, LLC (.01% managing Member); non-AEGON affiliates : BBCN Bank (1.2499%), East West Bank (12.4988%), Opus Bank (12.4988%), Standard Insurance Company (24.9975%), Mutual of Omaha (12.4988%), Pacific Western Bank (7.4993%) and Principal Life Insurance Company (18.7481%).	Investments

Ganet LIHTC Fund XLII, LLC	Delaware	Members: Garnet Community Investments XLII, LLC (.01%) managing Member; non-affiliates of AEGON: Community Trust Bank (83.33%) investor Member; Metropolitan Bank (16.66%) investor Member.	Investments

Garnet LIHTC Fund XLIV-A, LLC	Delaware	Sole Member: ING Capital, LLC; Asset Manager: Garnet Community Investments XLIV, LLC (0% interest)	Investments

Garnet LIHTC Fund XLIV-B, LLC	Delaware	Sole Member: Lion Capital Delaware, Inc.; Asset Manager: Garnet Community Investments XLIV, LLC (0% interest)	Investments

Garnet LIHTC Fund XLVI, LLC	Delaware	Members: Garnet Community Investments XLVI, LLC (0.01%) managing Member; non-affiliate of AEGON, Standard Life Insurance Company (99.99%) investor Member	Investments

Garnet LIHTC Fund XLVII, LLC	Delaware	Members: Garnet Community Investments XLVII, LLC (1%) managing Member; Transamerica Premire Life Insurance Company (14%) investor Member; non-affiliate of AEGON: Citibank, N.A. (49%) investor Member; New York Life Insurance Company (20.5%) investor Member and New York Life Insurance and Annuity Corporation (15.5%) investor Member.	Investments


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund XLVIII, LLC	Delaware	Members: Transamerica Financial Life Insurance Company (75.18%) and Garnet Community Investments XXXLVIII, LLC (.01%); non-affiliates of AEGON: U.S. Bancorp Community Development Corporation (21.04%), American Republic Insurance Company (2.84%), Bank of Hope (.93%)	Investments

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 special limited partner); non-affiliates of AEGON: ABS Imani Fe, LLC (.0034% class A limited partner); TAH Imani Fe GP, LLC (.0033% co-general partner); Grant Housing and Economic Development Corporation (.0033% managing general partner)	Affordable housing

InterSecurities Insurance Agency, Inc.	California	100% Transamerica Premier Life Insurance Company	Insurance agency

Interstate North Office Park GP, LLC	Delaware	Sole Member: 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	Sole Member: RCC North America LLC	Investments

Interstate North Office Park (Land) GP, LLC	Delaware	Sole Member: 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, LLC	Iowa	Sole Member: RCC North America LLC	Leases business equipment

Ironwood Re Corp.	Hawaii	100% Commonwealth General Corporation	Captive insurance company

LCS Associates, LLC	Delaware	Sole Member: RCC North America LLC	Investments

Life Investors Alliance LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Purchase, own, and hold the equity interest of other entities

LIHTC Fund 53, LLC	Delaware	Non-Member Manager, AEGON Community Investments 53, LLC (0%); non-affiliates of AEGON: Bank of America, National Association (98%); MUFG Union Bank, N.A. (2%)	Investments


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
LIHTC Fund 56, LLC	Delaware	Members: Managing Member—Aegon Community Investments 56, LLC (0%); non-affiliates of AEGON, Bank of America, National Association (90%) and MUFG Union Bank, N.A. (10%)	Investments

LIHTC Fund 59, LLC	Delaware	Member: Aegon Community Investments 59, LLC	Investments

LIHTC Fund XLV, LLC	Delaware	Non-Member Manager: Garnet Community Investments XLV, LLC (0%)	Investments

LIHTC Fund XLIX, LLC	Delaware	Sole Member: Garnet Community Investments XLIX, LLC	Investments

LIICA Re II, Inc.	Vermont	100% Transamerica Life Insurance Company	Captive insurance company

Massachusetts Fidelity Trust Company	Iowa	100% AUSA Holding, LLC	Trust company

Mitigation Manager, LLC	Delaware	Sole Member: RCC North America LLC	Investments

MLIC Re I, Inc.	Vermont	100% Transamerica Life Insurance Company	Captive insurance company

Money Services, Inc.	Delaware	100% AUSA Holding, LLC	Provides certain financial services for affiliates including, but not limited to, certain intellectual property, computer and computer-related software and hardware services, including procurement and contract services to some or all of the Members of the AEGON Group in the United States and Canada.

Monumental Financial Services, Inc.	Maryland	100% Transamerica Corporation	DBA in the State of West Virginia for United Financial Services, Inc.

Monumental General Administrators, Inc.	Maryland	100% AUSA Holding, LLC	Provides management services to unaffiliated third party administrator

Natural Resources Alternatives Portfolio I, LLC	Delaware	Members: Transamerica Life Insurance Company (64%); Transamerica Premier Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%); Managing Member: AEGON USA Realty Advisors, LLC	Investment vehicle—to invest in Natural Resources

Natural Resources Alternatives Portfolio II, LLC	Delaware	Members: Transamerica Premier Life Insurance Company (60%); Transamerica Life Insurance Company (35%); Transamerica Financial Life Insurance Company (5%).	Investment vehicle

Nomagon Title Grandparent, LLC	Delaware	Sole member is AEGON USA Asset Management Holding, LLC; AEGON USA Realty Advisors, LLC is the non-member manager of this entity.	Investment vehicle

Nomagon Title Holding 1, LLC	Delaware	Sole member is Nomagon Title Parent, LLC; AEGON USA Realty Advisors, LLC is the non-member manager of this entity.	Investment vehicle


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Nomagon Title Parent, LLC	Delaware	Sole member is Nomagon Title Grandparent, LLC; AEGON USA Realty Advisors, LLC is the non-member manager of this entity.	Investment vehicle

Oncor Insurance Services, LLC	Iowa	Sole Member—Life Investors Financial Group, Inc.	Direct sales of term life insurance

Osceola Mitigation Partners, LLC	Florida	Members: Mitigation Manager, LLC (50%); non-affiliate of AEGON, OBPFL-MITBK, LLC (50%)	Investmetns

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—Transamerica Life Insurance Company	Marketing non-insurance products

Pine Falls Re, Inc.	Vermont	100% Transamerica Life Insurance Company	Captive insurance company

Placer 400 Investors, LLC	California	Members: RCC North Amerivca LLC (50%); non-affiliate of AEGON, AKT Placer 400 Investors, LLC (50%)	Investments

Primus Guaranty, Ltd.	Bermuda	Members: Transamerica Life Insurance Company (20% 13.1%) and non-affiliates of AEGON and the public holders own the remainder.	Provides protection from default risk of investment grade corporate and sovereign issues of financial obligations.

PSL Acquisitions Operating, LLC	Iowa	Sole Member: RCC North America LLC	Owner of Core subsidiary entities

RCC North America LLC	Delaware	Sole Member: Transamerica Corporation	Real estate

Real Estate Alternatives Portfolio 2 LLC	Delaware	Members are: Transamerica Life Insurance Company (92.%); Transamerica Financial Life Insurance Company (7.5%). Manager: AEGON USA Realty Advisors, Inc.	Real estate alternatives investment

Real Estate Alternatives Portfolio 3 LLC	Delaware	Members are: Transamerica Life Insurance Company (74.4% ); Transamerica Premier Life Insurance Company (25.6%). Manager: AEGON USA Realty Advisors, Inc.	Real estate alternatives investment

Real Estate Alternatives Portfolio 3A, Inc.	Delaware	Members: Transamerica Premier Life Insurance Company (37%); Transamerica Financial Life Insurance Company (9.4%); Transamerica Life Insurance Company (53.6%).	Real estate alternatives investment

Real Estate Alternatives Portfolio 4 HR, LLC	Delaware	Members: Transamerica Life Insurance Company (64%); Transamerica Premier 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
Real Estate Alternatives Portfolio 4 MR, LLC	Delaware	Members: Transamerica Life Insurance Company (64%); Transamerica Premier 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

River Ridge Insurance Company	Vermont	100% AEGON Management Company	Captive insurance company

SB Frazer Owner, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments

Second FGP LLC	Delaware	Sole Member: FGH USA LLC	Real estate

Seventh FGP LLC	Delaware	Sole Member: FGH USA LLC	Real estate

Short Hills Management Company	New Jersey	100% Transamerica Corporation	Dormant

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

TABR Realty Services, LLC	Delaware	Sole Member: AUSA Holding, LLC	Real estate investments

TAH-MCD IV, LLC	Iowa	Sole Member—Transamerica Affordable Housing, Inc.	Serve as the general partner for McDonald Corporate Tax Credit Fund IV Limited Partnership.

TAH Pentagon Funds, LLC	Iowa	Sole Member—Transamerica Affordable Housing, Inc.	Serve as a general partner in a lower-tier tax credit entity

TAHP Fund 1, LLC	Delaware	Sole Member—Garnet LIHTC Fund IX, LLC	Real estate investments

TAHP Fund 2, LLC	Delaware	Sole Member—Garnet LIHTC Fund VIII, LLC	Low incoming housing tax credit

TAHP Fund VII, LLC	Delaware	Investor Member: Garnet LIHTC Fund XIX, LLC	Real estate 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 Jay Orlandi	Delaware	100% AEGON International B.V.	Voting Trust

THH Acquisitions, LLC	Iowa	Sole Member—Transamerica Life Insurance Company	Acquirer of Core South Carolina mortgage loans from Investors Warranty of America, LLC and holder of foreclosed real estate.

TLIC Oakbrook Reinsurance, Inc.	Iowa	100% Transamerica Life Insurance Company	Limited purpose subsidiary life insurance company

TLIC Riverwood Reinsurance, Inc.	Iowa	100% Transamerica Life Insurance Company	Limited purpose subsidiary life insurance company


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
TLIC Watertree 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: RCC North America LLC	Acquirer of Core Florida mortgage loans from Investors Warranty and holder of foreclosed real estate.

Transamerica Accounts Holding Corporation	Delaware	100% TCFC Asset Holdings, Inc.	Holding company

Transamerica Advisors Life Insurance Company	Arkansas	100% Transamerica Corporation	Insurance company

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, LLC	Special purpose subsidiary

Transamerica Asset Management, Inc.	Florida	Transamerica Premier Life Insurance Company owns 77%; AUSA Holding, LLC owns 23%.	Fund advisor

Transamerica Aviation LLC	Delaware	Sole Member: TCFC Air Holdings, Inc.	Special purpose corporation

Transamerica (Bermuda) Services Center, Ltd.	Bermuda	100% AEGON International B.V.	Special purpose corporation

Transamerica Capital, Inc.	California	100% AUSA Holding, LLC	Broker/Dealer

Transamerica Casualty Insurance Company	Iowa	100% Transamerica Corporation	Insurance company

Transamerica Commercial Finance Corporation, I	Delaware	100% Transamerica Finance Corporation	Holding company

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 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, LLC; 209 shares owned by Commonwealth General Corporation; 729 shares owned by AEGON Asset Management Services, Inc.	Broker/Dealer

Transamerica Financial Life Insurance Company	New York	88% Transamerica Corporation; 12% Transamerica Life Insurance Company	Insurance


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Fund Services, Inc.	Florida	Transamerica Premier Life Insurance Company owns 44%; AUSA Holding, LLC owns 56%	Mutual fund

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	Members: 51% Beth Lewellyn; 49% AEGON Direct Marketing Services, Inc.	Provide consulting services ancillary to the marketing of insurance products overseas.

Transamerica International RE (Bermuda) Ltd.	Bermuda	100% Transamerica Corporation	Reinsurance

Transamerica International Re Escritório de Representação no Brasil Ltd	Brazil	95% Transamerica International Re(Bermuda) Ltd.; 5% Commonwealth General Corporation	Insurance and reinsurance consulting

Transamerica Investment Management, LLC	Delaware	Sole Member—AEGON USA Asset Management Holding, LLC	Investment advisor

Transamerica Investors Securities Corporation	Delaware	100% Transamerica Retirement Solutions, LLC	Broker/Dealer

Transamerica Leasing Holdings Inc.	Delaware	100% Transamerica Finance Corporation	Holding company

Transamerica Life Insurance Company	Iowa	100%—Commonwealth General Corporation	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 Pacific Insurance Company, Ltd.	Hawaii	100% Commonwealth General Corporation	Life insurance

Transamerica Premier Life Insurance Company	Iowa	100% Commonwealth General Corporation	Insurance Company

Transamerica Pyramid Properties LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Realty limited liability company

Transamerica Realty Investment Properties LLC	Delaware	Sole Member: Transamerica Premier Life Insurance Company	Realty limited liability company

Transamerica Redwood Park, LLC	Delaware	Sole Member—Transamerica Corporation	Hold property interests in Redwood Park in California

Transamerica Resources, Inc.	Maryland	100% Monumental General Administrators, Inc.	Provides education and information regarding retirement and economic issues.

Transamerica Retirement Advisors, LLC	Delaware	Sole Member: Transamerica Retirement Solutions, LLC	Investment advisor

Transamerica Retirement Insurance Agency, LLC	Delaware	Sole Member: Transamerica Retirement Solutions, LLC	Conduct business as an insurance agency.

Transamerica Retirement Solutions, LLC	Delaware	Sole Member: AUSA Holding, LLC	Retirement plan services.

Transamerica Small Business Capital, Inc.	Delaware	100% TCFC Asset Holdings, Inc.	Holding company


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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	Sole Member: Money Services, Inc.	Travel and conference services

Transamerica Vendor Financial Services Corporation	Delaware	100% TCFC Asset Holdings, Inc.	Provides commercial leasing

Transamerica Ventures, LLC	Delaware	Sole Member: AUSA Holding, LLC	Investments

Transamerica Ventures Fund, LLC	Delaware	100% AUSA Holding, LLC	Investments

United Financial Services, Inc.	Maryland	100% Transamerica Corporation	General agency

Universal Benefits, LLC	Iowa	Sole Member: AUSA Holding, LLC	Third party administrator

US PENG, INC.	Delaware	Sole Member: AEGON Levensverzekering N.V.	Energy investment strategy

WFG Insurance Agency of Puerto Rico, Inc.	Puerto Rico	100% World Financial Group Insurance Agency, Inc.	Insurance agency

WFG Properties Holdings, LLC	Georgia	Sole Member: World Financial Group, Inc.	Marketing

WFG Reinsurance Limited	Hawaii	51% owned by World Financial Group, Inc.; remaining 49% is annually offered to independent contractors associated with WFG Reinsurance Ltd.	Reinsurance

WFG Securities 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% Commonwealth General Corporation	Holding company

World Financial Group, Inc.	Delaware	100% AEGON Asset Management Services, Inc.	Marketing

World Financial Group Insurance Agency of Canada Inc.	Ontario	50% World Financial Group Holding Co. of Canada Inc.; 50% World Financial Group Subholding Co. of Canada Inc.	Insurance agency

World Financial Group Insurance Agency of Hawaii, Inc.	Hawaii	100% World Financial Group Insurance Agency, Inc.	Insurance agency

World Financial Group Insurance Agency of Massachusetts, Inc.	Massachusetts	100% World Financial Group Insurance Agency, Inc.	Insurance agency

World Financial Group Insurance Agency of Wyoming, Inc.	Wyoming	100% World Financial Group Insurance Agency, Inc.	Insurance agency

World Financial Group Insurance Agency, Inc.	California	100% Transamerica Premier Life Insurance Company	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	Members are: Real Estate Alternatives Portfolio 4MR, LLC (49%) and non-AEGON affiliate (51%)	Real estate investments


Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Zahorik Company, Inc.	California	100% AUSA Holding, LLC	Inactive

Zero Beta Fund, LLC	Delaware	Members are: Transamerica Life Insurance Company (33.06%); Transamerica Premier Life Insurance Company (36.40%); Transamerica Financial Life Insurance Company (18.13%); Transamerica Pacific Insurance Company, Ltd. (12.41%). Manager: AEGON USA Investment Management LLC	Aggregating vehicle formed to hold various fund investments.

Item 27.

Number of Contract Owners

As of the date of this prospectus, there were no 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 producers for determining when indemnification payments can be made.

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

Item 29.

Principal Underwriters

(a) None

(b) Not Applicable

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 payments 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 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.

(d)	The Depositor hereby represents that the fees and charges deducted under the contracts, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the Depositor.

SECTION 403(B) REPRESENTATIONS

Transamerica Life Insurance Company represents that it is relying on a no-action letter dated November 28, 1988, to the American Council of Life Insurance (Ref. No. IP-6-88), regarding Sections 22(e), 27(c)(1), and 27(d) of the Investment Company Act of 1940, in connection with redeemability restrictions on Section 403(b) Policies, and that paragraphs numbered (1) through (4) of that letter will be complied with.

TEXAS ORP REPRESENTATION

The Registrant intends to offer policies to participants in the Texas Option Retirement Program. In connection with that offering, the Registrant is relying on Rule 6c-7 under the Investment Company Act of 1940 and is complying with, or shall comply with, paragraphs (a) – (d) of that Rule.

SIGNATURES

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 Denver and State of Colorado, on this 19^th day of December, 2019.

SEPARATE ACCOUNT VA B

Registrant

TRANSAMERICA LIFE INSURANCE COMPANY

Depositor

Blake S. Bostwick

Director and President

As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.


Signatures	Title	Date

* Blake S. Bostwick	Director and President	December 19, 2019

* Eric J. Martin	Controller, Senior Vice President and Assistant Treasurer	December 19, 2019

* Mark W. Mullin	Director and Chairman of the Board	December 19, 2019

* Jay Orlandi	Director, Executive Vice President, Secretary and General Counsel	December 19, 2019

* David Schulz	Director, Chief Tax Officer and Senior Vice President	December 19, 2019

* C. Michiel van Katwijk	Director, Chief Financial Officer, Executive Vice President and Treasurer	December 19, 2019

/s/ Brian Stallworth Brian Stallworth	Assistant Secretary	December 19, 2019

*	By: Brian Stallworth – Attorney-in-Fact pursuant to Powers of Attorney filed previously and/or herewith.