As filed with the Securities and Exchange Commission on April 30, 2020

Registration No.333-233837

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. 2

Post-Effective Amendment No.     

and

REGISTRATION STATEMENT

UNDER

THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 323

SEPARATE ACCOUNT VA B

(Exact Name of Registrant)

TRANSAMERICA LIFE INSURANCE COMPANY

(Name of Depositor)

4333 Edgewood Road N.E.

Cedar Rapids, IA 52499-0001

(Address of Depositor’s Principal Executive Offices)

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

Brian Stallworth, Esquire

Transamerica Life Insurance Company

c/o Office of the General Counsel

4333 Edgewood Road, N.E.

Cedar Rapids, IA 52499

(Name and Address of Agent for Service)

Title of Securities Being Registered:

Flexible Premium Variable Annuity Policies

Approximate Date of Proposed Public Offering:

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

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

Transamerica B-Share Variable Annuity	Transamerica AxiomSM III Variable Annuity
Transamerica I-Share II Variable Annuity	Transamerica PrincipiumSM IV Variable Annuity

Issued by

TRANSAMERICA LIFE INSURANCE COMPANY

SEPARATE ACCOUNT VA B

Rate Sheet Supplement dated May 1, 2020

(for Applications signed on or after May 1, 2020)

to the

Prospectus dated May 1, 2020

This Rate Sheet Prospectus Supplement (this “supplement”) applies to the above listed Transamerica variable annuities and should be read and retained with the prospectus. If you would like another copy of the current prospectus, please call us at (800) 525-6205.

All Rate Sheet Prospectus Supplements are also available on the EDGAR system at www.sec.gov. Please see the SEC file number table below for your applicable product.

We are issuing this Rate Sheet Prospectus Supplement to provide the rider fee percentage, valuation frequency, protection level percentages, required allocations, minimum benefit age, as well as the withdrawal percentages that we are currently offering for the Transamerica Principal Optimizer^SM rider as described in the Transamerica Principal Optimizer^SM Rider Fees, Transamerica Principal Optimizer^SM – Summary, Transamerica Principal Optimizer^SM – Guaranteed Minimum Accumulation Benefit, Transamerica Principal Optimizer^SM – Withdrawal Percentage, Transamerica Principal Optimizer^SM – Guaranteed Minimum Withdrawal Benefit, Transamerica Principal Optimizer^SM – Automatic Step-Up and the Transamerica Principal Optimizer^SM – Required Allocations sections of the prospectus.

The amounts listed below apply for applications signed between May 1, 2020 and June 30, 2020. The rider fee, valuation frequency, minimum benefit ages, protection level percentages, required allocations as well as the withdrawal percentages, may be different than those listed below for applications signed after June 30, 2020. The rider fee, protection level and withdrawal percentages applicable to your policy will not change for the life of your policy (unless subject to an automatic step-up or an optional reset as described in the Automatic Step-Up and Optional Reset sections of your prospectus. At the time of an automatic step-up or an optional reset the rider fee percentage may increase but will not exceed the maximum in effect when the rider was elected. At the time of an optional reset the protection level percentage may decrease but will never be less than the minimum protection level percentage in effect when the rider was elected.) The premium and rebalance allocation requirements, minimum benefit age and valuation frequency will not change for the life of your policy.

RIDER FEE

Waiting Period	Single and Joint Life
10 Years	1.35%
7 Years	1.35%

VALUATION FREQUENCY

Annually

PROTECTION LEVEL PERCENTAGE

Waiting Period	Initial Protection Level Percentage	Minimum Protection Level Percentage
10 Years	100%	80%
7 Years	90%	80%

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2020.

Please read this Supplement carefully and retain it for future reference.

1

REQUIRED ALLOCATIONS

10 and 7 Year Waiting Periods	Premium Allocation Requirement		Rebalance Allocation Requirement
	Minimum	Maximum	Minimum	Maximum
Stable Account*	30%	30%	N/A	N/A
Select Investment Options	0%	70%	0%	100%
Flexible Investment Options	0%	70%	0%	100%
*The stable account is excluded from rebalancing

MINIMUM BENEFIT AGE

59

WITHDRAWAL PERCENTAGES

Age	10 and 7 Year Waiting Periods
	Single**	Joint**
0-58	0.00%	0.00%
59-64	4.00%	3.50%
65-79	5.00%	4.50%
80+	6.00%	5.50%

** The withdrawal percentage is determined by the number of rider years and the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) attainment of the minimum benefit age.

Please note: In order for you to receive the rider fee and withdrawal percentages, premium and rebalance allocation requirements, reflected above, your application must be signed within the time period disclosed above. We must also receive your completed application within 7 calendar days from the date that this supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that this supplement is no longer effective. If these conditions are not met, your application will be considered not in good order. If you decide to proceed with the purchase of the policy, additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

Transamerica Life Insurance Company
Product Name	SEC File Number	Product Name	SEC File Number
Transamerica B-Share Variable Annuity	333-233836	Transamerica AxiomSM III Variable Annuity	333-233837
Transamerica I-Share II Variable Annuity	333-233839	Transamerica PrincipiumSM IV Variable Annuity	333-233838

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2020.

Please read this Supplement carefully and retain it for future reference.

2

Transamerica B-Share Variable Annuity	Transamerica AxiomSM III Variable Annuity
Transamerica I-Share II Variable Annuity	Transamerica PrincipiumSM IV Variable Annuity

Issued by

TRANSAMERICA LIFE INSURANCE COMPANY

SEPARATE ACCOUNT VA B

Rate Sheet Supplement dated May 1, 2020

(for Applications signed on or after May 1, 2020)

to the

Prospectus dated May 1, 2020

This Rate Sheet Prospectus Supplement (this “supplement”) applies to the above listed Transamerica variable annuities and should be read and retained with the prospectus. If you would like another copy of the current prospectus, please call us at (800) 525-6205.

All Rate Sheet Prospectus Supplements are also available on the EDGAR system at www.sec.gov. Please see the SEC file number table below for your applicable product.

We are issuing this supplement to provide the rider fee, growth and withdrawal percentages, as well as the valuation frequency and minimum benefit age that we are offering for the Retirement Income Max^® 1.2 rider as described in the Retirement Income Max^® 1.2 Rider Fees, Retirement Income Max^® 1.2 – Base Benefit, Retirement Income Max^® 1.2 – Withdrawal Percentage and the Retirement Income Max^® 1.2 –Growth Component sections of the prospectus.

The amounts listed below apply for applications signed between May 1, 2020 and June 30, 2020. The rider fee, growth and withdrawal percentages, valuation frequency and minimum benefit age may be different than those listed below for applications signed after June 30, 2020. The rider fee and withdrawal percentages applicable to your policy will not change for the life of your policy (unless subject to an automatic step-up as described in the Automatic Step-Up section of your prospectus. At the time of an automatic step-up the rider fee percentage may change. (The rider fee percentage will not exceed the maximum fee percentage in effect when you purchased the rider). The growth percentage, minimum benefit age and valuation frequency will not change for the life of your policy.

RIDER FEE

Single	Joint
1.50%	1.60%

GROWTH PERCENTAGE

6.50%

VALUATION FREQUENCY

Annually

MINIMUM BENEFIT AGE

59

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2020.

Please read this Supplement carefully and retain it for future reference.

1

WITHDRAWAL PERCENTAGE

Age at time of first withdrawal	Withdrawal Percentage - Single Life Option*	Withdrawal Percentage - Joint Life Option*
0-58	0.00%	0.00%
59-64	4.00%	3.50%
65-79	5.00%	4.50%
³ 80	5.50%	5.00%

* The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the benefit anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) attainment of minimum benefit age.

Please note: In order for you to receive the rider fee, growth and withdrawal percentages reflected above, your application must be signed within the time period disclosed above. We must also receive your completed application within 7 calendar days after the date that this supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that this supplement is no longer effective. If these conditions are not met, your application will be considered not in good order. If you decide to proceed with the purchase of the policy, additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

Transamerica Life Insurance Company
Product Name	SEC File Number	Product Name	SEC File Number
Transamerica B-Share Variable Annuity	333-233836	Transamerica AxiomSM III Variable Annuity	333-233837
Transamerica I-Share II Variable Annuity	333-233839	Transamerica PrincipiumSM IV Variable Annuity	333-233838

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2020.

Please read this Supplement carefully and retain it for future reference.

2

Transamerica B-Share Variable Annuity	Transamerica AxiomSM III Variable Annuity
Transamerica I-Share II Variable Annuity	Transamerica PrincipiumSM IV Variable Annuity

Issued by

TRANSAMERICA LIFE INSURANCE COMPANY

SEPARATE ACCOUNT VA B

Rate Sheet Supplement dated May 1, 2020

(for Applications signed on or after May 1, 2020)

to the

Prospectus dated May 1, 2020

This Rate Sheet Prospectus Supplement (this “supplement”) applies to the above listed Transamerica variable annuities and should be read and retained with the prospectus. If you would like another copy of the current prospectus, please call us at (800) 525-6205.

All Rate Sheet Prospectus Supplements are also available on the EDGAR system at www.sec.gov. Please see the SEC file number table below for your applicable product.

We are issuing this supplement to provide the rider fee, growth and withdrawal percentages as well as the valuation frequency and minimum benefit age that we are currently offering for the Retirement Income Choice^® 1.7 rider as described in the Retirement Income Choice^® 1.7 Fees, Retirement Income Choice^® 1.7 – Base Benefit, Retirement Income Choice^® 1.7 – Withdrawal Percentage and the Retirement Income Choice^® 1.7 –Growth Component sections of the prospectus.

The amounts listed below apply for applications signed between May 1, 2020 and June 30, 2020. The rider fee, growth and withdrawal percentages, valuation frequency and minimum benefit age may be different than those listed below for applications signed after June 30, 2020. The rider fee and withdrawal percentages applicable to your policy will not change for the life of your policy (unless subject to an automatic step-up as described in the Automatic Step-Up section of your prospectus. At the time of an automatic step-up the rider fee percentage and the rider withdrawal percentages may change. (The rider fee percentage will not exceed the maximum fee percentage in effect when you purchased the rider). The growth percentage, minimum benefit age and valuation frequency will not change for the life of your policy.

RIDER FEES

Rider Benefit	Single Life Option	Joint Life Option
Base Benefit Designated Allocation Group A	1.50%	1.60%
Base Benefit Designated Allocation Group B	1.50%	1.60%
Base Benefit Designated Allocation Group C	1.50%	1.60%
Death Benefit	0.40%	0.35%
Income Enhancement	0.30%	0.50%

GROWTH PERCENTAGE

5.50%

VALUATION FREQUENCY

Monthly

MINIMUM BENEFIT AGE

59

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2020.

Please read this Supplement carefully and retain it for future reference.

1

WITHDRAWAL PERCENTAGES

Age at time of first withdrawal	Withdrawal Percentage - Single Life Option*	Withdrawal Percentage - Joint Life Option*
0-58	0.00%	0.00%
59-64	4.00%	3.50%
65-79	5.00%	4.50%
³80	5.50%	5.00%

^* The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) attainment of the minimum benefit age.

Please note: In order for you to receive the rider fee, growth and withdrawal percentages reflected above, your application must be signed within the time period disclosed above. We must also receive your completed application within 7 calendar days from the date that this supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that this supplement is no longer effective. If these conditions are not met, your application will be considered not in good order. If you decide to proceed with the purchase of the policy, additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

Transamerica Life Insurance Company
Product Name	SEC File Number	Product Name	SEC File Number
Transamerica B-Share Variable Annuity	333-233836	Transamerica AxiomSM III Variable Annuity	333-233837
Transamerica I-Share II Variable Annuity	333-233839	Transamerica PrincipiumSM IV Variable Annuity	333-233838

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2020.

Please read this Supplement carefully and retain it for future reference.

2

Transamerica B-Share Variable Annuity	Transamerica AxiomSM III Variable Annuity
Transamerica I-Share II Variable Annuity	Transamerica PrincipiumSM IV Variable Annuity

Issued by

TRANSAMERICA LIFE INSURANCE COMPANY

SEPARATE ACCOUNT VA B

Rate Sheet Supplement dated May 1, 2020

(for Applications signed on or after May 1, 2020)

to the

Prospectus dated May 1, 2020

This Rate Sheet Prospectus Supplement (this “supplement”) applies to the above listed Transamerica variable annuities and should be read and retained with the prospectus. If you would like another copy of the current prospectus, please call us at (800) 525-6205.

All Rate Sheet Prospectus Supplements are also available on the EDGAR system at www.sec.gov. Please see the SEC file number table below for your applicable product.

We are issuing this Rate Sheet Prospectus Supplement to provide the rider fee and withdrawal percentages, valuation frequency and minimum benefit age as well as the premium and rebalance allocation requirements that we are currently offering for the Transamerica Income Edge^SM 1.2 rider as described in the Transamerica Income Edge^SM 1.2 Rider Fees, Transamerica Income Edge^SM 1.2 – Summary, Transamerica Income Edge^SM 1.2 – Withdrawal Percentage, Transamerica Income Edge^SM 1.2 – Withdrawal Base and the Transamerica Income Edge^SM 1.2 – Required Allocations sections of the prospectus.

The amounts listed below apply for applications signed between May 1, 2020 and June 30, 2020. The premium and rebalance allocation requirements, rider fee and/or withdrawal percentages, valuation frequency and minimum benefit age may be different than those listed below for applications signed after June 30, 2020. The rider fee and withdrawal percentages applicable to your policy will not change for the life of your policy (unless subject to an automatic step-up as described in the Automatic Step-Up section of your prospectus. At the time of an automatic step-up the rider fee percentage may increase but will not exceed the maximum in effect when the rider was elected). The rider fee percentage will not exceed the maximum fee percentage in effect when you purchased the rider.) The premium and rebalance allocation requirements, minimum benefit age and valuation frequency will not change for the life of your policy.

RIDER FEE

1.45%

VALUATION FREQUENCY

Annually

MINIMUM BENEFIT AGE

59

REQUIRED ALLOCATIONS

	Premium		Rebalance
	Minimum	Maximum	Minimum	Maximum
Stable Account*	30%	30%	N/A	N/A
Select Investment Options	0%	70%	0%	100%
Flexible Investment Options	0%	70%	0%	100%

  *The stable account is excluded from rebalancing

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2020.

Please read this Supplement carefully and retain it for future reference.

1

SINGLE LIFE WITHDRAWAL PERCENTAGE

Age at time of first withdrawal	Rider Years 1-3 Withdrawal Percentage - Single Life Option**	Rider Years 4-6 Withdrawal Percentage - Single Life Option**	Rider Years 7+ Withdrawal Percentage - Single Life Option**
0-58	0.00%	0.00%	0.00%
59-64	4.00%	4.75%	5.50%
65-79	5.00%	5.75%	6.50%
³ 80	5.50%	6.25%	7.00%

JOINT LIFE WITHDRAWAL PERCENTAGE

Age at time of first withdrawal	Rider Years 1-3 Withdrawal Percentage - Joint Life Option**	Rider Years 4-6 Withdrawal Percentage - Joint Life Option**	Rider Years 7+ Withdrawal Percentage - Joint Life Option**
0-58	0.00%	0.00%	0.00%
59-64	3.50%	4.25%	5.00%
65-79	4.50%	5.25%	6.00%
³ 80	5.00%	5.75%	6.50%

^** The withdrawal percentage is determined by the number of rider years and the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) attainment of the minimum benefit age.

Please note: In order for you to receive the premium and rebalance allocation requirements, rider fee and withdrawal percentages reflected above, your application must be signed within the time period disclosed above. We must also receive your completed application within 7 calendar days from the date that this supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that this supplement is no longer effective. If these conditions are not met, your application will be considered not in good order. If you decide to proceed with the purchase of the policy, additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

Transamerica Life Insurance Company
Product Name	SEC File Number	Product Name	SEC File Number
Transamerica B-Share Variable Annuity	333-233836	Transamerica AxiomSM III Variable Annuity	333-233837
Transamerica I-Share II Variable Annuity	333-233839	Transamerica PrincipiumSM IV Variable Annuity	333-233838

This Supplement must be accompanied or preceded by the current Prospectus dated May 1, 2020.

Please read this Supplement carefully and retain it for future reference.

2

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 AXIOM^SM III VARIABLE 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 Axiom^SM III Variable 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 Fixed Account (if available) and the underlying fund portfolios.

This prospectus and the underlying fund prospectuses give You important information about the policies and the underlying fund portfolios. When delivered in connection with the sale of a new Axiom^SM III policy, this prospectus must be accompanied by the applicable Rate Sheet Prospectus Supplements that specifies the current rider fee, growth rate percentage (if applicable), valuation frequency, minimum benefit age, withdrawal percentage, protection level percentage (if applicable), and required allocation (if applicable). 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: May 1, 2020
Statement of Additional Information Date: May 1, 2020

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

SUBACCOUNT	UNDERLYING FUND PORTFOLIO
AB Balanced Wealth Strategy Portfolio - Class B	AB Balanced Wealth Strategy Portfolio - Class B
AB Growth and Income Portfolio - Class B	AB Growth and Income Portfolio - Class B
American Funds - Asset Allocation Fund Class 4	American Funds - Asset Allocation Fund Class 4
American Funds - Bond Fund - Class 4	American Funds - Bond Fund - Class 4
American Funds - Growth Fund - Class 4	American Funds - Growth Fund - Class 4
American Funds - Growth-Income Fund - Class 4	American Funds - Growth-Income Fund - Class 4
American Funds - International Fund - Class 4	American Funds - International Fund - Class 4
American Funds - New World Fund® - Class 4	American Funds - New World Fund® - Class 4
DFA VA Global Bond Portfolio - Institutional Class	DFA VA Global Bond Portfolio - Institutional Class
Fidelity ® VIP Balanced Portfolio - Service Class 2	Fidelity ® VIP Balanced Portfolio - Service Class 2
Fidelity ® VIP Consumer Staples - Initial Class	Fidelity ® VIP Consumer Staples - Initial Class
Fidelity ® VIP Contrafund® Portfolio - Service Class 2	Fidelity ® VIP Contrafund® Portfolio - Service Class 2
Fidelity ® VIP Energy Portfolio - Service Class 2	Fidelity ® VIP Energy Portfolio - Service Class 2
Fidelity ® VIP Health Care Portfolio - Service Class 2	Fidelity ® VIP Health Care Portfolio - Service Class 2
Fidelity ® VIP Mid Cap Portfolio - Service Class 2	Fidelity ® VIP Mid Cap Portfolio - Service Class 2
Fidelity ® VIP Technology Portfolio - Initial Class	Fidelity ® VIP Technology Portfolio - Initial Class
Fidelity ® VIP Utilities Portfolio - Initial Class	Fidelity ® VIP Utilities Portfolio - Initial Class
Fidelity ® VIP Value Strategies Portfolio - Service Class 2	Fidelity ® VIP Value Strategies Portfolio - Service Class 2
State Street Total Return V.I.S. Fund - Class 3	State Street Total Return V.I.S. Fund - Class 3
TA 60/40 Allocation - Service Class	Transamerica 60/40 Allocation VP - Service Class
TA Aegon High Yield Bond - Service Class	Transamerica Aegon High Yield Bond VP - Service 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 VP - Service Class
TA Barrow Hanley Dividend Focused - Service Class	Transamerica Barrow Hanley Dividend Focused VP - Service Class
TA BlackRock Global Real Estate Securities - Service Class	Transamerica BlackRock Global Real Estate Securities VP - Service Class
TA BlackRock Government Money Market - Service Class	Transamerica BlackRock Government Money Market VP - Service Class
TA BlackRock iShares Edge 40- Service Class	Transamerica BlackRock iShares Edge 40 VP - Service Class
TA BlackRock iShares Edge 50 - Service Class	Transamerica BlackRock iShares Edge 50 VP - Service Class
TA BlackRock iShares Edge 75 - Service Class	Transamerica BlackRock iShares Edge 75 VP - Service Class
TA BlackRock iShares Edge 100 - Service Class	Transamerica BlackRock iShares Edge 100 VP - Service Class
TA BlackRock Tactical Allocation - Service Class	Transamerica BlackRock Tactical Allocation VP - Service Class
TA Goldman Sachs 70/30 - Service Class	Transamerica Goldman Sach 70/30 Portfolio VP - Service Class
TA International Growth - Service Class	Transamerica International Growth VP - Service Class
TA Janus Balanced - Service Class	Transamerica Janus Balanced VP - Service Class
TA Janus Mid-Cap Growth - Service Class	Transamerica Janus Mid-Cap Growth VP - Service Class
TA JPMorgan Asset Allocation - Conservative - Service Class	Transamerica JPMorgan Asset Allocation - Conservative VP – Service Class
TA JPMorgan Asset Allocation - Growth - Service Class	Transamerica JPMorgan Asset Allocation - Growth VP – Service Class
TA JPMorgan Asset Allocation - Moderate - Service Class	Transamerica JPMorgan Asset Allocation - Moderate VP – Service 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 - Service Class	Transamerica JPMorgan Enhanced Index VP – Service Class
TA JPMorgan International Moderate Growth - Service Class	Transamerica JPMorgan International Moderate Growth VP – Service Class

ii

SUBACCOUNT	UNDERLYING FUND PORTFOLIO
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 - Service Class	Transamerica Morgan Stanley Capital Growth VP – Service Class
TA Morgan Stanley Global Allocation - Service Class	Transamerica Morgan Stanley Global Allocation VP - Service Class
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class	Transamerica Morgan Stanley Global Allocation Managed Risk - Balanced VP - Service Class
TA MSCI EAFE Index - Service Class	Transamerica MSCI EAFE Index VP - Service Class
TA Multi-Managed Balanced - Service Class	Transamerica Multi-Managed Balanced 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 - Service Class	Transamerica PIMCO Total Return VP – Service Class
TA PineBridge Inflation Opportunities - Service Class	Transamerica PineBridge Inflation Opportunities VP - Service Class
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 S&P 500 Index - Service Class	Transamerica S&P 500 Index VP - Service Class
TA Small Mid Cap Value - Service Class	Transamerica Small/Mid Cap Value VP – Service Class
TA T. Rowe Price Small Cap - Service Class	Transamerica T. Rowe Price Small Cap VP – Service Class
TA TS&W International Equity - Service Class	Transamerica TS&W International Equity VP – Service Class
TA WMC US Growth - Service Class	Transamerica WMC US Growth VP – Service Class
Vanguard VIF Balanced Portfolio	Vanguard VIF Balanced Portfolio
Vanguard VIF Conservative Allocation Portfolio	Vanguard VIF Conservative Allocation Portfolio
Vanguard VIF Mid-Cap Index Portfolio	Vanguard VIF Mid-Cap Index Portfolio
Vanguard VIF Moderate Allocation Portfolio	Vanguard VIF Moderate Allocation Portfolio

iii

TABLE OF CONTENTS

GLOSSARY OF TERMS	1
INTRODUCTION	3
FEE TABLE AND EXPENSE EXAMPLES	5
THE ANNUITY	9
PURCHASE	9
Policy Issue Requirements	9
Premium Payments	9
Policy Value	11
INVESTMENT OPTIONS	11
Selection of Underlying Fund Portfolios	11
Static Allocation	12
Addition, Deletion, or Substitution of Investment Options	12
The Fixed Account	13
Transfers	14
Market Timing and Disruptive Trading	15
Investment Restrictions	17
EXPENSES	17
Surrender Charges	17
Access Rider	18
Excess Interest Adjustment	18
Mortality and Expense Risk Fees	18
Administrative Charges	18
Premium Taxes	18
Federal, State and Local Taxes	18
Special Service Fees	19
Transfer Fee	19
Service Charge	19
Fund Facilitation Fee	19
Optional Benefits	19
Underlying Fund Portfolio Fees and Expenses	19
Reduced Fees and Charges	19
Revenue We Receive	19
ACCESS TO YOUR MONEY	21
Surrenders and Withdrawals	21
Delay of Payment and Transfer	21
Excess Interest Adjustment	22
Signature Guarantee	23
ANNUITY PAYMENTS (THE INCOME PHASE)	23
Annuity Payment Options	23
DEATH BENEFIT	25
When We Pay A Death Benefit	26
When We Do Not Pay A Death Benefit	26
Deaths After the Annuity Commencement Date	26
Owner Death	27
Spousal Continuation	27
Amount of Death Benefit	27
Guaranteed Minimum Death Benefit	27
Adjusted Withdrawal	29
TAX INFORMATION	29

ADDITIONAL FEATURES	37
Systematic Payout Option	37
Access Rider	37
Additional Death DistributionSM	38
Additional Death Distribution+SM	39
Nursing Care and Terminal Condition Waiver	40
Unemployment Waiver	40
Telephone and Electronic Transactions	40
Dollar Cost Averaging Program	41
Asset Rebalancing	42
Guaranteed Lifetime Withdrawal Benefits	42
Guaranteed Lifetime Withdrawal Benefit Comparison Table	42
Transamerica Principal OptimizerSM Rider	45
Retirement Income Max® 1.2 Rider	58
Retirement Income Choice® 1.7 Rider	66
Transamerica Income EdgeSM 1.2 Rider	77
OTHER INFORMATION	87
State Variations	87
Ownership	88
Beneficiary	88
Right to Cancel Period	88
Assignment	88
Termination for Low Value	88
Sending Forms and Transaction Requests in Good Order	88
Regulatory Modifications to Policy	89
Certain Offers	89
Mixed and Shared Funding	89
Exchanges and/or Reinstatements	89
Voting Rights	90
Abandoned or Unclaimed Property	90
Legal Proceedings	90
Business Continuity	90
Cyber Security	90
Information About Us	92
Financial Condition	92
The Separate Account	93
The Underlying Fund Portfolios	93
Other Transamerica Policies	93
Distribution of the Policies	94
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION	95
APPENDIX
UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS	96
APPENDIX
Designated Investment Options	101

iv

TABLE OF CONTENTS continued

APPENDIX
TRANSAMERICA PRINCIPAL OptimizerSM AND TRANSAMERICA INCOME EDGESM 1.2 Investment Options	104
APPENDIX
static allocations	107
APPENDIX
CONDENSED FINANCIAL INFORMATION	108
APPENDIX
Excess Interest Adjustment Examples	109
APPENDIX
Death Benefit	112
APPENDIX
ADDITIONAL DEATH DISTRIBUTIONSM RIDER	114
APPENDIX
ADDITIONAL DEATH DISTRIBUTION+SM RIDER	115
APPENDIX
Guaranteed Lifetime Withdrawal Benefit - Transamerica Principal OptimizerSM and Transamerica Income EdgeSM 1.2  riders – REBALANCING EXAMPLES	116
APPENDIX
Hypothetical Adjusted withdrawals - Retirement income max® 1.2 and retirement income choice® 1.7 Riders	117

APPENDIX
Hypothetical Adjusted withdrawals - Transamerica Principal OptimizerSM and Transamerica income EdgeSM 1.2 Riders	120
APPENDIX
Hypothetical Example of the Withdrawal Base Calculation - Retirement Income Max® 1.2 rider	122
APPENDIX
Hypothetical Example of the Withdrawal Base Calculation - Retirement Income Choice® 1.7 Rider	124
APPENDIX
Hypothetical Example of the Withdrawal Base Calculation - Transamerica Principal OptimizerSM and Transamerica Income EdgeSM 1.2  riders	126

v

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.

Adjusted Policy Value - The Policy Value increased or decreased by any Excess Interest Adjustment.

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. Business Day may be referred to as Market Day in your policy.

Cash Value - The Adjusted Policy Value less any applicable Surrender Charge.

Death Proceeds– The amount payable upon death.

Excess Interest Adjustment - A positive or negative adjustment to amounts paid out or transferred from the Fixed Account Guaranteed Period Options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by us since the date any payment was received by, or an amount was transferred to, the Guaranteed Period Option. The Excess Interest Adjustment can either decrease or increase the amount to be received by the Owner upon withdrawals, surrenders, or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively. The Excess Interest Adjustment will not decrease the interest credited to Your policy below the guaranteed minimum. The Excess Interest Adjustment does not apply to policies issued in New York by Transamerica Financial Life Insurance Company.

Fixed Account - One or more investment options under the policy that are part of our general assets and are not in the Separate Account.

Guaranteed Lifetime Withdrawal Benefit - Any optional benefit under the policy that provides a guaranteed minimum withdrawal benefit, including the Transamerica Principal Optimizer^SM rider, the Retirement Income Max^® 1.2 rider, the Retirement Income Choice^® 1.7 rider and the Transamerica Income Edge^SM 1.2 rider.

Guaranteed Minimum Accumulation Benefit– A benefit under the optional Transamerica Principal Optimizer^SM (TPO) rider that provides a guaranteed future value.

Guaranteed Period Options - The various guaranteed interest rate periods of the Fixed Account which we may offer and into which premium payments may be paid or amounts transferred when available.

Nurse - A licensed registered Nurse or licensed practical Nurse.

Nursing Care - Skilled or intermediate care performed by a Nurse.

Owner (You, Your) - The person who may exercise all rights and privileges under the policy.

Physician - A doctor of medicine or osteopathy as set forth in Section 186 (r)(1) of the Social Security Act, as amended who is legally authorized to practice medicine and surgery within the United States by the jurisdiction in which he or she performs such function or action.

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

1

• gross  withdrawals (withdrawals plus the Surrender Charge on the portion of the requested withdrawal that is subject to the Surrender Charge plus or minus any Excess Interest Adjustment plus taxes (on the withdrawal)); plus

• interest credited in the Fixed Account; plus

• accumulated gains in the Separate Account; minus

• accumulated losses in the Separate Account; minus

• service charges, rider fees, premium taxes, transfer fees, and other charges (including those imposed upon termination), 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.

Separate Account Value - The portion of the Policy Value that is invested in the Separate Account.

Stable Account - A Fixed Account option, only available if You elect the Transamerica Income Edge^SM 1.2 rider or the Transamerica Principal Optimizer^SM rider, to which You must allocate a portion of Your premium payments and Policy Value. Assets in the Stable Account are not subject to Separate Account Annual Expenses as set forth under FEE TABLE AND EXPENSE EXAMPES.

Static Allocation– An investment option that invests different percentages of the Policy Value in some or all of the Subaccounts available within the policy.

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

Surrender Charge Free Amount - The amount that can be withdrawn each Policy Year without incurring any Surrender Charges. Please see “EXPENSES – Surrender Charges” for more explanation.

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.

2

INTRODUCTION

How to buy this variable annuity

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

	Qualified Policy(1,3) Minimum Initial Deposit	Non-Qualified Policy Minimum Initial Deposit(1,4)	Surrender Charge Period	Mortality & Expense Risk and Administrative Charges
Axiom III	$1,000	$5,000	5 years	1.00%

(1)  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). If You purchase the policy as an individual retirement annuity or as 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 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, annual service charge and optional rider fees. Each underlying fund portfolio has its own minimum Policy Value requirements. Not all underlying fund portfolios may be available through Your financial intermediary.

(3)	Includes anticipated premium at time of application from transfers or rollovers as indicated on Your application or electronic order form.
(4)	Includes anticipated premium at time of application from 1035 exchanges as indicated on Your application or electronic order form.

√ Choose investment options

• Subaccounts – Invest in underlying fund portfolios representing a range of investment strategies, objectives and asset classes.

• Fixed Account - A fixed interest account (if available).

Subject to limitations, You may move Your Policy Value among each of these investment options.

√ Choose optional guaranteed benefits (if desired)*

Lifetime Withdrawal Benefits	Transamerica Principal OptimizerSM(1, 2) (provides protection of assets, retirement income for life with a broad range of investment choices) Retirement Income Max® 1.2(1)(Provides retirement income for life with a conservative range of investment choices) Retirement Income Choice® 1.7(1, 3)(Provides retirement income for life and income for a long term care with a moderate range of investment choices) Transamerica Income EdgeSM 1.2(1)(Provides retirement income for life with a broad range of investment choices)
Death Benefits	Return of Premium(1) (Total premiums, minus withdrawals) Annual Step-Up(1) (largest Policy Value on any policy anniversary prior to 81st birthday minus withdrawals) Additional Death DistributionSM(1) (Pays an additional death benefit amount (based on earnings) Additional Death Distribution+SM(1) (Pays an additional death benefit amount (based on benefit base)
C-Share Rider	Access Rider (Eliminates surrender charges)

(1)	Investment or other restrictions may apply.
(2)	Also includes an accumulation benefit.
(3)	Also includes an optional death benefit.
*	Additional fees apply. Optional benefits may not be available for all policies, in all states, at all times or through all financial intermediaries.

3

√ Complete our application or order form

√ Pay the applicable minimum initial deposit

4

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 reflects the maximum charges unless otherwise noted.

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%. Excess Interest Adjustments may be made to amounts withdrawn or surrendered, transferred or applied to Annuity Payment Options from Cash Value from the Fixed Account. (All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)

Owner Transaction Expenses:
Front-End Sales Load On Purchase Payments	0%
Contingent Deferred Surrender Charge (as a percentage of premium surrendered)(1)
Year 1	7%
Year 2	6%
Year 3	5%
Year 4	4%
Year 5	3%
Year 6 (or more)	0%
Transfer Fee(2)	$10
Special Service Fee(3)	$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(4)	$50
Separate Account Annual Expenses (as a percentage, annually, of average Separate Account Value)(5):
Mortality and Expense Risk Fee	0.85%
Administrative Charge	0.15%
Total Base Separate Account Annual Expenses	1.00%
Optional Separate Account Expenses:
Return of Premium Death Benefit (as a percentage, annually, of average Separate Account Value)	0.15%
Annual Step-Up Death Benefit (as a percentage, annually, of average Separate Account Value)	0.35%
Fund Facilitation Fee (as a percentage, annually, of the net asset value of Subaccount)	0.60%
Access Rider (as a percentage, annually, of average Separate Account Value)	0.20%
Total Separate Account Annual Expenses with Highest Optional Separate Account Expense	2.15%
Optional Death Benefit Riders (You may only elect one of the optional Death Benefit riders listed below):
Additional Death DistributionSM (annual charge based on Policy Value)	0.25%
Additional Death Distribution+SM (annual charge based on Policy Value)	0.55%

	Maximum
Optional Guaranteed Lifetime Withdrawal Benefit Riders: (You may only elect one of the Guaranteed Lifetime Withdrawal Benefit optional riders listed below)(6)
Retirement Income Max® 1.2 rider (annual charge - % of Withdrawal Base)*	2.50%
Retirement Income Choice® 1.7 rider (annual charge - % of Withdrawal Base)*
Designated Allocation Group A*	2.50%
Designated Allocation Group B*	2.50%
Designated Allocation Group C*	2.50%

5

	Maximum
Additional Benefits available with Retirement Income Choice® 1.7 rider:
Death Benefit - (Single Life Option) (annual charge - % of Withdrawal Base)*	0.55%
Death Benefit - (Joint Life Option) (annual charge - % of Withdrawal Base)*	0.50%
Income EnhancementSM - (Single Life Option - Not available in NY) (annual charge - % of Withdrawal Base)*	0.45%
Income EnhancementSM - (Joint Life Option - Not available in NY) (annual charge - % of Withdrawal Base)*	0.65%
Transamerica Income EdgeSM 1.2 rider (annual charge - % of Withdrawal Base)*	2.50%
Transamerica Principal OptimizerSM rider (annual charge - % of the Rider Fee Basis)*	2.50%

*The Current rider fee will be less than or equal to the stated Maximum. Your rider fee may increase (or decrease) at the time of any automatic step-up or optional reset. See Automatic Step-Up or Optional Reset section. Your rider fee percentage will not exceed the maximum fee percentage shown in this table. The current rider fee will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

The next section shows the lowest and highest total operating expenses charged by the underlying fund portfolios for the year ended December 31, 2019 (before any fee waiver or expense reimbursements). Expenses may be higher or lower in future years. More detail concerning each portfolio's fees and expenses is contained in the prospectus for each portfolio.

Total Portfolio Annual Operating Expenses (Expenses that are deducted from portfolio assets, including management fees, distribution and/or service 12b-1 fees, and other expenses)(7):
Lowest Gross	0.12%
Highest Gross	1.48%

Notes to Fee table

Owner Transaction Expenses:

1) Maximum Surrender Charge:

The surrender charge, if any is imposed, applies to each premium payment, regardless of how Policy Value is allocated among the investment options. The surrender charge decreases based on the number of years since the premium payment was made.

2) Transfer Fee:

The transfer fee, if any is imposed, applies to each policy, regardless of how Policy Value is allocated among the investment options. There is no fee for the first 12 transfers per Policy Year. For additional transfers, we may charge a fee of $10 per transfer. Currently, we do not charge a transfer fee, but reserve the right to do so.

3) Special Service Fee:

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; 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.

4) Annual Service Charge:

The annual service charge is assessed on each policy anniversary and at the time of surrender. The charge (up to $35) is waived if Your Policy Value or the sum of Your premiums less all withdrawals, is at least $100,000. The current annual service charge is the lesser of $35 per Policy Year or 2% of the Policy Value.

Charge Type	Amount
Service Charge (current)	$35
Maximum Annual Service Charge	$50

6

5) Separate Account Annual Expenses:

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 base death benefit.

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

Fund Facilitation Fee: This daily fee is applied only to Policy Value in the Subaccounts invested in:

Fund	Annualized Fee %
DFA VA Global Bond Portfolio - Institutional Class Vanguard VIF Balanced Portfolio Vanguard VIF Conservative Allocation Portfolio Vanguard VIF Mid-Cap Index Portfolio Vanguard VIF Moderate Allocation Portfolio	0.60%
Fidelity ® VIP Consumer Staples - Initial Class Fidelity® VIP Technology Portfolio - Initial Class Fidelity® VIP Utilities Portfolio - Initial Class	0.50%
Fidelity ® VIP Balanced Portfolio - Service Class 2 Fidelity® VIP Energy Portfolio - Service Class 2 Fidelity® VIP Health Care Portfolio - Service Class 2	0.30%
AB Balanced Wealth Strategy Portfolio - Class B American Funds - Asset Allocation Fund Class 4 State Street Total Return V.I.S. Fund - Class 3	0.20%
American Funds - New World Fund® - Class 4 TA MSCI EAFE Index - Service Class TA S&P 500 Index - Service Class	0.15%
American Funds - Growth Fund - Class 4 American Funds - Growth-Income Fund - Class 4 American Funds - International Fund - Class 4	0.13%
American Funds - Bond Fund - Class 4	0.11%

We charge a fund facilitation fee in order to make certain Subaccounts available as investment choices under the policies. We apply the fee to Subaccounts that invest in underlying fund portfolios that do not provide us with the amount of revenue we require in order for us to meet our expenses and revenue targets. This fee is assessed daily based on the net asset value of Subaccounts that we specify, up to a maximum fee of 0.60%.

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

Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses: This reflects the base Separate Account expenses, the Annual Step-Up Death Benefit fee, Fund Facilitation fee and Access Rider, but does not include any other Optional Rider Charges. The death benefits are mutually exclusive.

OPTIONAL RIDERS

In some cases, riders to the policy are available that provide optional benefits. There are additional fees (annualized fee charged on a yearly or quarterly basis, depending on the rider) for those riders.

6) Optional Guaranteed Lifetime Withdrawal Benefits:

Transamerica Principal Optimizer^SM Rider, Retirement Income Max^® 1.2 Rider, Retirement Income Choice^® 1.7 Rider and Transamerica Income Edge^SM 1.2 - Withdrawal Base: We use the greater of the withdrawal base and the guaranteed future value to calculate the rider withdrawal amount. The withdrawal base is also used in the calculation of the rider fee. For the Transamerica Principal Optimizer^SM rider, we use the greater of the withdrawal base and the guaranteed future value to calculate the rider fee. The withdrawal base on the rider date is the Policy Value.

7

7) 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.

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, 2019, and the base policy with the combination of available optional features or riders with the highest fees and expenses, including the highest Fund Facilitation Fee, Annual Step-Up Death Benefit, Additional Death Distribution+^SM rider and Retirement Income Choice^® 1.7 rider - Joint Life with additional Death Benefit and Income Enhancement^SM options. Although Your actual costs may be higher or lower, based on these assumptions, Your costs would be:

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

	without Access Rider	with Access Rider
1 Year	$1,393	$ 782
3 Years	$2,765	$2,368
5 Years	$4,164	$3,976
10 Years	$7,914	$8,041

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

	without Access Rider	with Access Rider
1 Year	$ 763	$ 782
3 Years	$2,315	$2,368
5 Years	$3,894	$3,976
10 Years	$7,914	$8,041

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.

Notes to Expense Examples

1) Expense Examples:

The Examples don't reflect premium tax charges, special service fees, or transfer fees. Different fees and expenses not reflected in the Examples may be assessed during the income phase of the policy.

8

THE ANNUITY

This prospectus describes information You should know before You purchase the Transamerica Axiom^SM III Variable 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. If You invest in the Separate Account, the amount of money You are able to accumulate in Your policy during the accumulation phase depends upon the performance of Your 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.

The Fixed Account may, but is not guaranteed to always, be offered. If the Fixed Account is offered it will offer interest at a rate(s) that we guarantee will not decrease during the selected guaranteed period. There may be different interest rates for each different guaranteed period that we may offer and that You select.

Do not purchase this policy if You plan to use it, or any of its riders, for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme. Your 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 (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) payment; and

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

• 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.

9

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

Initial Premium Requirements. The initial premium payment for nonqualified policies must be at least $5,000 (including anticipated premiums from Internal Revenue Code Section 1035 exchanges 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.

Your initial premium payment may not be credited to Your policy on the day that You leave Your premium payment with Your financial intermediary. Your financial intermediary may take up to seven Business Days to assess whether buying this policy is suitable for You. Your financial intermediary may send us Your initial premium payment while they complete this assessment. Your financial intermediary must also ensure that we have all the information needed for us to process Your policy. We will not begin to process Your policy during this period.

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. This time period is in addition to the time Your financial intermediary may take to complete their part of the process. 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.

Neither we nor Your financial intermediary are responsible for lost investment opportunities while we each 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 $50. After the first Policy Year, additional premium payments each Policy Year cannot, in the aggregate, without our prior approval, exceed $25,000 for nonqualified policies and the lesser of (1) the IRS maximum contribution limit or (2) $60,000 for qualified policies. We reserve the right to refuse any additional premium payment in excess of these limits, and if You do not obtain prior approval for premiums in excess of the dollar amounts listed above, the business will be deemed not in good order. 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. For issue ages 0-80, we reserve the right to require prior approval of any cumulative premium payments over $1,000,000 (this includes subsequent premium payments) for policies with the same Owner or same Annuitant issued by us or an affiliate. We may approve premium payments over $1,000,000 but restrict access to certain optional benefits. For issue ages over 80, we reserve the right to require prior approval of any cumulative premium payments over $500,000 (this includes subsequent premium payments) for policies with the same Owner or same Annuitant issued by us or an affiliate. If You do not obtain prior approval for premium payments in excess of the dollar amounts listed above, the business will be deemed not in good order.

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.

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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.

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, which accompany this prospectus. You should read the prospectuses for the underlying fund portfolios carefully before You invest.

Note: If You received a summary prospectus for any of the 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.

Selection of Underlying Fund Portfolios

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

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

If You elect a Guaranteed Lifetime Withdrawal Benefit rider, as discussed later in this prospectus, we require You to allocate Your Policy Value to designated investment options. This requirement is intended to reduce the Company’s costs and risks associated with offering the rider, and we select which underlying fund portfolios to make available under the riders with these factors in mind. Certain designated investment options invest in underlying fund portfolios with volatility control strategies, which could limit full participation in market gains and the growth of the riders. See the Investment Restrictions section below for information regarding the potential impact of volatility control strategies on the value of the Guaranteed Lifetime Withdrawal Benefit riders.

Designated investment options, including those that invest in underlying fund portfolios with volatility control strategies, are also available to contract Owners who do not elect a Guaranteed Lifetime Withdrawal Benefit rider. Although volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns, such strategies could limit Your full participation in market gains and ability to maximize potential growth of Your Policy Value.

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You are responsible for choosing the Subaccounts which invest in the underlying fund portfolios, and the amounts allocated to each, that are appropriate for Your own individual circumstances and Your investment goals, financial situation, and risk tolerance. Because investment risk is borne by You, decisions regarding investment allocations should be carefully considered. We do not recommend or endorse any particular underlying fund portfolio and we do not provide investment advice.

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

You bear the risk of any decline in the Cash Value of Your policy resulting from the performance of the underlying fund portfolios You have chosen.

We do not guarantee that any of the Subaccounts will always be available for premium payments, allocations, or transfers.

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

If You elect certain optional riders, You will be subject to investment restrictions. In the future, we may change the investment restrictions.

Not all Subaccounts may be available for all policies, in all states, or through all financial intermediary firms.

Static Allocation

You may also allocate a certain percentage of Your Policy Value to Static Allocations that we may make available as additional investment options. We may limit the number of Static Allocations You can simultaneously invest in. A Static Allocation is a static asset allocation model that invests certain percentages of the Policy Value in some or all of the Subaccounts currently available within Your policy. In other words, a Static Allocation is not a portfolio of underlying fund portfolios with one Accumulation Unit value, but rather direct investment in a certain allocation of Subaccounts. Please see “Appendix – Static Allocations” for the Subaccounts and percentages of each that make up each of the Static Allocations that are currently available for investment. There is no additional charge with investing in a Static Allocation.

You may not make transfers among the underlying Subaccounts of a Static Allocation. However, You may transfer between a Static Allocation and any of the Subaccounts available under Your policy. Any transfer into or out of a Static Allocation will be treated as any other transfer to or from an investment option. We will proportionately deduct any withdrawals You take from the Subaccounts in a Static Allocation.

In order to maintain a Static Allocations’ specified Subaccount allocation percentages, quarterly rebalancing is required and will occur on the last day of the calendar quarter.

We may terminate a Static Allocation at any time in response to changes to underlying investment options, changes in market conditions, or for other business purposes. For example, if a Subaccount within a Static Allocation is closed to new investments or liquidates, we will terminate the affected Static Allocation.

When a Static Allocation is terminated, future rebalancing of the Static Allocation will cease and that Static Allocation will be closed to new investments. “Closed to new investments” means you cannot allocate additional amounts (either through policy transfers or additional premiums) to the Static Allocation after the closure date. You will be given notice and opportunity to reallocate the Policy Value in the affected Static Allocation to one or more available Subaccounts (including other Static Allocations that may be available at that time). If instructions are not received for reallocation, the Policy Value will remain in the underlying Subaccounts of the terminated Static Allocation, if available, until such time that we receive updated allocation instructions.

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.

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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.

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.

The Fixed Account

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

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

Surrenders, withdrawals, transfers, and amounts applied to an Annuity Payment Option from a Guaranteed Period Option of the Fixed Account prior to the end of the guaranteed period are generally subject to an Excess Interest Adjustment. See ACCESS TO YOUR MONEY - Excess Interest Adjustment for more information about when an Excess Interest Adjustment applies. This adjustment will also be made to amounts that You apply to an Annuity Payment Option. The Excess Interest Adjustment will not decrease the interest credited to Your policy below the guaranteed minimum. Please see “Appendix – Excess Interest Adjustment Examples” for an example showing the effect of a hypothetical Excess Interest Adjustment calculation.

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We also guarantee that upon full surrender Your Cash Value attributable to the Fixed Account will not be less than the amount required by the applicable nonforfeiture law at the time the policy is issued.

If You select the Fixed Account, when it is available, Your money will be placed with our other general assets. Assets in the Stable Account are not subject to Separate Account Annual Expenses as set forth under FEE TABLE AND EXPENSE EXAMPLES. The amount of money You are able to accumulate in the Fixed Account during the accumulation phase depends upon the total interest credited. The amount of each annuity payment You receive during the income phase from the fixed portion of Your policy will remain level for the entire income phase. The interest credited as well as principal invested in the Fixed Account is based on our claims-paying ability.

We reserve the right to refuse any premium payment or transfer to the Fixed Account.

Transfers

During the accumulation phase, You may make transfers to or from any investment option within certain limitations. Transfers out of a Guaranteed Period Option of the Fixed Account are limited to the following:

• Transfers at the end of a guaranteed period.

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

• Other than at the end of a guaranteed period, transfers of amounts from the guaranteed period option in excess of amounts equal to interest credited are subject to an Excess Interest Adjustment. If it is a negative adjustment, the maximum amount you can transfer in any one Policy Year may be limited to 25% of the amount in that guaranteed period option, less any previous transfers during the current Policy Year. If it is a positive adjustment, we do not limit the amount that You can transfer.  (Note: This restriction may prolong the period of time it takes to transfer the full amount in the guaranteed period option of the Fixed Account.  You should carefully consider whether investment in the Fixed Account meets Your needs and investment criteria.) Please see “Appendix - Excess Interest Adjustment Examples” for an example showing the effect of a hypothetical Excess Interest Adjustment calculation.

In general, each transfer from a Subaccount must be at least $500, or the entire Subaccount value if less than $500. Transfers of interest from a Guaranteed Period Option of the Fixed Account must be at least $50. If less than $500 remains as a result of the transfer, then we reserve the right to include that amount in the transfer. Transfer requests must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. 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.

The number of transfers permitted may be limited and a $10 charge for each transfer in excess of 12 in any Policy Year may apply. Currently, we do not charge a transfer fee but reserve the right to do so in the future. We reserve the right to prohibit transfers to the Fixed Account.

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

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

Additional Restrictions for the Transamerica Income Edge^SM 1.2 and the Transamerica Principal Optimizer^SM. If You elect the Transamerica Income Edge^SM 1.2 rider or the Transamerica Principal Optimizer^SM rider, a certain percentage of Your Policy Value must be allocated to the Stable Account, the select investment options and the flexible investment options as specified below. See Transamerica Income Edge^SM 1.2 – Required Allocations and Transamerica Principal Optimizer^SM - Required Allocations. Any transfer requests to and from the select investment options and flexible investment options will be validated using the prior Business Day’s Policy Value to ensure compliance with the required allocations for rebalancing at the time of the request. Transfer requests that do not comply with the required allocations for rebalancing will be deemed not in good order. Changes in Policy Values due to market movements on other dates will not be treated as a violation of the required allocations. Transfers to the Stable Account are not permitted except at the time of election of the rider. Transfers from the Stable Account are not permitted except upon termination of the rider.

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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 and the Fixed Account. (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 registered representative or an asset allocation or investment advisory service.

We reserve the right to reject any premium payment or transfer request from any person without prior notice, if, in our judgment, (1) the 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 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.

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

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.

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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 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.

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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.

Investment Restrictions

If You elect certain optional riders, You will be subject to investment restrictions requiring You to invest in certain underlying fund portfolios, which may be referred to (depending on Your rider) as designated investment options, flexible investment options and/or select investment options. In addition, the Transamerica Income Edge^SM 1.2 rider and the Transamerica Principal Optimizer^SM rider may require You to invest in the Stable Account.

One or more of the underlying fund portfolios that may be designated, flexible or select investment options under an optional rider, in part, may include a volatility control strategy. Volatility control strategies, in periods of high market volatility, could limit Your participation in market gains; this may conflict with Your investment objectives by limiting Your ability to maximize potential growth of Your Policy Value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns. Volatility control (and similar terms) can encompass a variety of investment strategies of different types and degrees; therefore, You should read the applicable annuity and underlying fund portfolio prospectuses carefully to understand how these investment strategies may affect Your Policy Value and rider benefits. Our requirement to invest in accordance with certain investment options, which may include volatility control, may reduce our costs and risks associated with the applicable riders. You pay an additional fee for the rider benefits which, in part, pays for protecting the rider benefit base from investment losses. Since the rider benefit base does not decrease as a result of investment losses, volatility control strategies might not provide meaningful additional benefit to You. You should carefully evaluate with Your financial professional whether to invest in underlying fund portfolios with volatility control strategies, taking into consideration the potential positive or negative impact that such strategy may have on Your investment objectives, Your Policy Value and the benefits under the riders. If You determine that funds with volatility control strategies are not consistent with Your investment objectives, other investment options are available under the riders that do not invest in funds that utilize volatility control strategies.

For more information about the underlying fund portfolios and the investment strategies they employ, please refer to the underlying fund portfolios' current prospectuses.

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 are optional benefits that if selected, assess additional charges. Please see ADDITIONAL FEATURES for more information.

Surrender Charges

During the accumulation phase, You can surrender part (referred to as a “withdrawal”) or all of the Cash Value (referred to as a “surrender”) (restrictions may apply to qualified policies). We may apply a surrender charge to compensate us for start-up expenses of the policy relating to sales, including commissions to registered representatives and other promotional expenses.

You can take a withdrawal of up to 10% of Your premium payments each Policy Year free of surrender charges. This amount is referred to as the Surrender Charge Free Amount and is determined at the time of surrender. (This amount is not cumulative, so not withdrawing anything in one year does not increase the Surrender Charge Free Amount in subsequent years.) If the withdrawal is in excess of the Surrender Charge Free Amount, You might have to pay a surrender charge, which is a contingent deferred sales charge, on the excess amount.

For example, assume Your premium is $100,000 and Your Policy Value is $106,000 at the beginning of the second Policy Year and You request a withdrawal of $30,000. Since that amount is more than Your Surrender Charge Free Amount ($10,000), You would pay a surrender charge of $1,200 on the remaining $20,000 [6% of ($30,000 - $10,000)]. Likewise, assume Your Policy Value is $80,000 (premium payments $100,000) at the beginning of the second Policy Year and You surrender Your policy. You would pay a surrender charge of $5,400 [6% of ($100,000 - ($100,000 x 10%))].

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You can generally choose to receive the full amount of a requested withdrawal by directing us to deduct any applicable surrender charge (and any applicable Excess Interest Adjustment) from Your remaining Policy Value. You receive Your Cash Value upon full surrender.

Surrender charges and Excess Interest Adjustments are waived if You request a withdrawal under the Nursing Care and Terminal Condition Withdrawal Option or the Unemployment Waiver.

For surrender charge purposes, earnings are considered to be withdrawn first, then the oldest premium is considered to be withdrawn next. Please note, while there is no surrender charge on the withdrawal of earnings, withdrawn earnings count towards Your Surrender Charge Free Amount. This means that withdrawing earnings will reduce (possibly to zero) Your Surrender Charge Free Amount (10% of premium payments) for that Policy Year.

Keep in mind that withdrawals may be taxable and, if taken before age 59½, may be subject to a 10% federal penalty tax. For tax purposes, withdrawals from nonqualified policies are considered to come from taxable earnings first.

We may elect to reduce or eliminate the amount of the surrender charge when the policy is sold under circumstances which reduce our sales or other expenses or when required to by regulation or regulatory authority.

Access Rider

The optional Access Rider eliminates any surrender charges. There is an additional charge for this rider.

Excess Interest Adjustment

Surrenders, withdrawals, transfers, amounts applied when a death benefit is calculated, and amounts applied to an annuity option from the Fixed Account may be subject to an Excess Interest Adjustment. This adjustment could retroactively reduce the interest credited in the Fixed Account to the guaranteed minimum or increase the amount credited. This adjustment may also apply to amounts applied to an Annuity Payment Option. However, please note that a death benefit will not be reduced if the Excess Interest Adjustment results in a decrease in the Cash Value available to You. Please see “Appendix - Excess Interest Adjustment Examples” for an example showing the effect of a hypothetical Excess Interest Adjustment calculation. The Excess Interest Adjustment plays a role in calculating the total interest credited to the Fixed Account.

Mortality and Expense Risk Fees

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

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 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; 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 in the Fee Table.

Transfer Fee

You are generally allowed to make 12 free transfers per Policy Year before the Annuity Commencement Date. If You make more than 12 transfers per Policy Year, we reserve the right to charge for each additional transfer. Premium payments, Asset Rebalancing, and Dollar Cost Averaging transfers do not count as one of Your free transfers. All transfer requests made at the same time are treated as a single transfer. Currently, we are not charging for transfers, but reserve the right to do so in the future.

Service Charge

During the accumulation phase, an annual service charge of $35 (but not more than 2% of the Policy Value) is charged on each policy anniversary and at surrender. The service charge is waived (up to a maximum of $35) if Your Policy Value or the sum or Your premiums, less all withdrawals, is at least $100,000.

Fund Facilitation Fee

We charge a fund facilitation fee in order to make certain Subaccounts available as investment options under the policies. We apply the fee to Subaccounts that invest in underlying fund portfolios that do not provide us with the amount of revenue we require in order for us to meet our expenses and revenue targets. This fee is assessed daily based on the net asset value of Subaccounts that we specify, up to a maximum fee of 0.60%.

Optional Benefits

If You elect to purchase optional benefits, we will deduct an additional fee. For some optional benefits the fee is assessed against the daily net asset value of each Subaccount and for others it is deducted from each investment option in proportion to the amount of Policy Value in each investment option. Please refer to the FEE TABLE AND EXPENSE EXAMPLES for the list of fees for each optional benefit and ADDITIONAL FEATURES for more information.

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.

Revenue We Receive

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

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

• Rule 12b-1 Fees. We and/or our affiliate, Transamerica Capital, Inc. (“TCI”) who is the principal underwriter for the policies, indirectly receive 12b-1 fees from certain underlying fund portfolios available as investment options under our variable insurance products. Any 12b-1 fees received by TCI that are attributable to our variable insurance products are then credited to us. These fees range from 0.00% to 0.45% of the average daily assets of the certain underlying fund portfolios attributable to the policies and to

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certain other variable insurance products that we and our affiliates issue. These fees are paid from the underlying fund portfolios’ assets. Policy Owners, through their indirect investment in the underlying fund portfolios, bear the costs of 12b-1 fees (see the prospectuses for the underlying funds for more information).

• Administrative, Marketing and Support Service Fees (“Support Fees”). As noted above, an investment adviser, sub-adviser, administrator and/or distributor (or affiliates thereof) of the underlying fund portfolios may make payments to us and/or our affiliates, including TCI. These payments may be derived, in whole or in part, from the profits the investment adviser or sub-adviser realized on the advisory fee deducted from underlying fund portfolio assets. Policy Owners, through their indirect investment in the underlying fund portfolios, bear the costs of these advisory fees (see the prospectuses for the underlying funds for more information). However, amounts paid from an investment adviser’s or sub-adviser’s (or other service provider’s) revenues are not paid from the underlying portfolios’ assets. The amount of the payments we (or our affiliates) receive is generally based on a percentage of the assets of the particular underlying fund portfolios attributable to the policy and to certain other variable insurance products that our affiliates and we issue. These percentages differ and the amounts may be significant. Some advisers or sub-advisers (or other affiliates) pay us more than others.

The following chart provides the maximum combined percentages of Support Fees and underlying fund portfolio fees (i.e. sub-transfer agent, Rule 12b-1, and Shareholder Services) that we anticipate will be paid to us on an annual basis.

Incoming Payments to Us and/or TCI
Fund	Maximum Fee % of assets
TRANSAMERICA SERIES TRUST (“TST”)	0.25%
AB VARIABLE PRODUCTS SERIES FUND, INC.	0.45%
AMERICAN FUNDS INSURANCE SERIES® TRUST	0.25%
FIDELITY ® VARIABLE INSURANCE PRODUCTS FUND	0.395%
STATE STREET VARIABLE INSURANCE SERIES FUNDS, INC.	0.45%

NOTES TO INCOMING PAYMENTS TABLE:

Maximum Fee % of assets: Payments are based on a percentage of the average assets of each underlying fund portfolio owned by the Subaccounts available under this policy and under certain other variable insurance products offered by our affiliates and us. We and/or TCI may continue to receive 12b-1 fees and administrative fees on funds invested in Subaccounts that are closed to new premium payments, depending on the terms of the agreements supporting those payments and on the services provided.

TST: Because TST is managed by TAM, an affiliate of ours, there are additional benefits to us and our affiliates for amounts You allocate to the TST underlying fund portfolios, in terms of our and our affiliates’ overall profitability. These additional benefits may be significant. Payments or other benefits may be received from TAM. Such payments or benefits may be entered into for a variety of purposes, such as to allocate resources to us and to provide administrative services to the policyholders who invest in Subaccounts that invest in the TST underlying fund portfolios. These payments or benefits may take the form of internal credits, recognition, or cash payments. A variety of financial and accounting methods may be used to allocate resources and profits to us. Additionally, if a TST portfolio is sub-advised by an entity that is affiliated with us, we may retain more revenue than on those TST portfolios that are sub-advised by non-affiliated entities. During 2019 we received approximately $223.8 million for Transamerica Life Insurance Company and $16.6 million for Transamerica Financial Life Insurance Company in benefits from TAM pursuant to these arrangements. This includes the 0.25% amount in the above chart. We anticipate receiving comparable amounts in the future.

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

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

• may each directly or indirectly pay TCI conference sponsorship or marketing allowance payments that provides such advisers and sub-advisers with access to TCI's wholesalers at TCI's national and regional sales conferences as well as internal and external meetings and events that are attended by TCI's wholesalers and/or other TCI employees.

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

• may provide us and/or certain affiliates and/or selling firms with occasional gifts, meals, tickets or other compensation as an incentive to market the underlying fund portfolios and to assist with their promotional efforts. The amounts may be significant and these arrangements provide the adviser or sub-adviser (or other affiliates) with increased access to us and to our affiliates involved in the distribution of the policies.

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For the calendar year ended December 31, 2019, TCI and its affiliates received payments that totaled approximately $1,900,000.00. The firms that paid to participate in TCI sponsored events included but were not limited to the following: Aegon USA Investment Management • Allianz Global Investors •  American Century • Alliance Bernstein• American Funds • Amundi Pioneer Asset Management • Barrow, Hanley, Mewhinney & Strauss LLC • BlackRock Investment Management, LLC • Carillon Tower Advisers •  Charles Schwab Investment Management, LLC • Columbia Threadneedle Investments • Dimensional Fund Advisers •  Fidelity Investments • Franklin Templeton Investments• Hartford Funds •  Ivy Investments•  Janus Henderson Investors•  John Hancock Investments• JP Morgan Asset Management• Legg Mason Global Asset Management•  Levin Capital Strategies, LP• Lord Abbett & Co.•  Milliman Financial Risk Management LLC • Morgan Stanley Investment Management Inc. • Neuberger Berman • New York Life/Mainstay Investments • Pacific Investment Management Company • PGIM Investments• PineBridge Investments LLC • Principal Global Investors •  State Street Global Advisors• Systematic Financial Management • Thompson Siegel & Walmsley • T. Rowe Price Associates, Inc. • Torray, LLC• The Vanguard Group, Inc. • Virtus Investment Partners• Wellington Management Company LLP and Wells Fargo Asset Management .

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

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

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

ACCESS TO YOUR MONEY

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

• by 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 Cash 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.

You may elect to take up to the Surrender Charge Free Amount each Policy Year without incurring a surrender charge. Remember that any withdrawal You take will reduce the Policy Value, and the amount of the death benefit. See DEATH BENEFIT, for more details. A withdrawal also may have a negative impact on certain other benefits and guarantees of Your policy. See ADDITIONAL FEATURES, for more details.

Withdrawals in excess of the Surrender Charge Free Amount may be subject to a surrender charge. Withdrawals from the Fixed Account may be subject to an Excess Interest Adjustment. 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.

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.

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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.

Pursuant to the requirements of certain state laws, we reserve the right to defer payment of the Cash Value from the Fixed Account for up to six months. We may defer payment of any amount until Your premium payment check has cleared Your bank.

Excess Interest Adjustment

Surrenders, withdrawals, transfers, and amounts applied to an annuity option, from a Guaranteed Period Option of the Fixed Account before the end of its guaranteed period (the number of years You specified the money would remain in the Guaranteed Period Option) may be subject to an Excess Interest Adjustment. If, at the time of such transactions the guaranteed interest rate set by us for the applicable period has risen since the date of the initial guarantee, the Excess Interest Adjustment will result in a lower Cash Value (but not below the Excess Interest Adjustment floor described in “Appendix - Excess Interest Adjustment Examples”). However, if the guaranteed interest rate for the applicable period has fallen since the date of the initial guarantee, the Excess Interest Adjustment will result in a higher Cash Value upon withdrawal, surrender or transfer. Please see “Appendix - Excess Interest Adjustment Examples” to see how the Excess Interest Adjustment is calculated and illustrative examples using hypothetical values.

Any amount withdrawn in excess of the cumulative interest credited for that Guaranteed Period Option is generally subject to an Excess Interest Adjustment. An Excess Interest Adjustment may also be made on amounts applied to an Annuity Payment Option.

The formula that will be used to determine the Excess Interest Adjustment is:

S* (G-C)* (M/12)
S	=	Is the amount (before surrender charges, premium taxes and the application of any Guaranteed Minimum Death Benefits, if any) being surrendered, withdrawn, transferred, paid upon death, or applied to an income option that is subject to the Excess Interest Adjustment;
G	=	Is the guaranteed interest rate for the guaranteed period applicable to “S”;
C	=	Is the current guaranteed interest rate then being offered on new premium payments for the next longer option period than “M”. If this policy form or such an option period is no longer offered, “C” will be the U.S. Treasury rate for the next longer maturity (in whole years) than “M” on the 25th day of the previous calendar month,
M	=	Number of months remaining in the current option period for “S”, rounded up to the next higher whole number of months; and
*	=	Multiplication

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

There will be no Excess Interest Adjustment on any of the following:

• withdrawals or transfers of cumulative interest credited for that Guaranteed Period Option;

• Nursing Care and Terminal Condition Waiver withdrawals;

• Unemployment Waiver withdrawals;

• transfers from a Dollar Cost Averaging fixed source;

• withdrawals to satisfy any minimum distribution requirements;

• systematic withdrawals, which do not exceed cumulative interest credited at the time of payment; and

• the Stable Account as defined in the glossary.

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Please note that in these circumstances You will not receive a higher Cash Value if interest rates have fallen nor will You receive a lower Cash Value if interest rates have risen.

The Excess Interest Adjustment may not be applicable for all policies.

Signature Guarantee

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

• Any 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. Unless required by state law this date cannot be earlier than the third policy anniversary. 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).

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 Adjusted Policy Value to provide these annuity payments. If the Adjusted Policy Value on the Annuity Commencement Date is less than $2,000, we reserve the right to pay it in one lump sum in lieu of applying it under an Annuity Payment Option. You can receive annuity payments monthly, quarterly, semi-annually, or annually. (We reserve the right to change the frequency if annuity payments would be less than the amount specified in Your policy.) We may require proof of life before making annuity payments.

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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 and an Excess Interest Adjustment 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 financial professional 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 financial professional 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.

• 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.

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NOTE CAREFULLY

IF:

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

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

THEN:

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

IF:

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

• the person receiving 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 and living benefits) terminate upon Annuitization. The only benefits that remain include the guarantees provided under the terms of the annuity option.

Please Note: If you annuitize before the maximum Annuity Commencement Date, the payments you receive under the Annuity Payment Options may be less than the guaranteed minimum payments you are entitled to under a GLWB rider (if elected). Please consult your financial professional about the advisability of Annuitization before the maximum commencement date and the Annuity Payment options available to You.

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 their share of the Death Proceeds. We will not pay any remaining beneficiary their share until we receive due proof of death from that beneficiary. 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.

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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 Owner, then he or she may elect, if eligible, to continue the policy as the new Annuitant and Owner, instead of receiving the death benefit. See DEATH BENEFIT - Spousal Continuation. All currently existing surrender charges will be waived.

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 Cash 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.

If an Owner (who is not the Annuitant) dies during the accumulation phase, the Cash 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.

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 Cash 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;

• the Cash Value on the date we receive in good order the required information at our Administrative Office (this will be more than the Policy Value if there is a positive Excess Interest Adjustment that exceeds the surrender charge);

• the Fixed Account portion of the minimum required Cash Value plus the Separate Account portion 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 gross 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 choose the Annual Step-Up death benefit or the 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.

The guaranteed minimum death benefit (unless you choose the Annual Step-Up or Return of Premium death benefit) is equal to your policy value as of the date due proof of death is provided.

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Annual Step-Up Death Benefit

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

• the largest Policy Value on the Policy Date or on any policy anniversary prior to the earlier of the Annuitant's date of death or the Annuitant's 81st birthday; plus

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

• any adjusted withdrawals (please see “Appendix - Death Benefit”) since the date of the policy anniversary with the largest Policy Value to the date of death; minus

• withdrawals from the date of death to the date the death benefit is paid.

The Annual Step-Up Death Benefit is not available if You or the Annuitant is 76 or older on the Policy Date. There is an extra charge for this death benefit. See FEE TABLE AND EXPENSE EXAMPLES.

Designated Investment Options. If You elected the Annual Step-Up Death Benefit, You must allocate 100% of Your Policy Value to one or more of the designated investment options approved for the Annual Step-Up Death Benefit. See “Appendix - Designated Investment Options” for a complete listing of available investment 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:

• 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.

• We have processes and procedures in place that will prevent allocation to a Subaccount that is not a designated investment option. These processes and procedures include restricting transfers requested by telephone and internet.

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

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 86 or older on the Policy Date. There is an extra charge for this death benefit. See FEE TABLE AND EXPENSE EXAMPLES.

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:

• 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.

• We have processes and procedures in place that will prevent allocation to a Subaccount that is not a designated investment option. These processes and procedures include restricting transfers requested by telephone and internet.

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

The Guaranteed Minimum Death Benefit may vary for certain policies and may not be available for all policies, 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 and You will not be impacted by a decision to discontinue offering any particular guaranteed minimum death benefit to new sales.

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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 financial professional 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.

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 living and death benefit options and riders elected may need to be taken into account in calculating minimum required distributions from a qualified plan/or policy.

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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 financial professionals 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 (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.

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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 financial professional. 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 financial professional 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 financial professional 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 financial professional 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 financial professional 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.

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 financial professional as to the potential tax effects of allocating amounts to any particular Annuity Payment Option.

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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 financial professional.

The Code also provides that amounts received from the policy that are includible in gross income (including the taxable portion of some annuity payments) 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 financial professional for more information regarding the imposition of penalty tax.

Guaranteed Lifetime Withdrawal Benefits

For policies with a Guaranteed Lifetime Withdrawal Benefit or a Guaranteed Minimum Accumulation Benefit the application of certain tax rules, particularly those rules relating to distributions from Your policy, are not entirely clear. It is possible that the withdrawal base (with respect to the Guaranteed Lifetime Withdrawal Benefits) and the guaranteed future value (with respect to the Guaranteed Minimum Accumulation Benefit) could be taken into account to determine the Policy Value that is used to calculate required distributions and the amount of the distribution that would be included in income. The proper treatment of the Income Enhancement Option under a Guaranteed Lifetime Withdrawal Benefit is unclear. It is possible that the IRS could determine that the benefit provides some form of long term care insurance. In that event, the Internal Revenue Service may determine the Income Enhancement Option is an incidental benefit with adverse consequences for qualification as an Individual Retirement Annuity, You could be treated as in receipt of some amount of income attributable to the value of the benefit even though You have not received a payment from Your policy, and the amount of income attributable to guaranteed lifetime withdrawal payments could be affected. In addition, if the Income Enhancement Benefit causes an increase in payments calculated to meet the Required Minimum Distribution requirements it may violate the rules governing such distributions with adverse tax consequences. In view of this uncertainty, You should consult a financial professional with any questions.

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 financial professional 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 financial professional 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 financial professional 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 financial professional 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 financial professional 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 financial professional 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 72 (or age 70½ if the Annuitant attained 70½ before 1/1/2020); (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 financial professional.

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 financial professional 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 72 (or 70½ if he/she attained 70½ prior to 1/1/2020) 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 72 (or 70½ if he/she attained 70½ prior to 1/1/2020). The actuarial present value of death and/or living benefit options and riders elected may need to be taken into account in calculating required minimum distributions. Please consult with your financial professional to learn more about an optional living or death benefit prior to purchase.

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 financial professional 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 financial professional 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.

Optional Living Benefits

For policies with a Guaranteed Lifetime Withdrawal Benefit or a Guaranteed Minimum Accumulation Benefit the application of certain tax rules, particularly those rules relating to distributions from Your policy, are not entirely clear. The tax rules for qualified policies may impact the value of these optional benefits. Additionally, the actions of the qualified plan as contract holder may cause the qualified plan participant to lose the benefit of the Guaranteed Lifetime Withdrawal Benefit. In view of this uncertainty, You should consult a financial professional before purchasing this policy as a qualified policy.

Withholding

The portion of any distribution under a policy that is includable in gross income will be subject to federal income tax withholding unless the recipient of such distribution elects not to have federal income tax withheld. Election forms will be provided at the time distributions are requested or 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

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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.

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 financial professional 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 financial professional 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 and nature 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 financial professional 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. Any systematic withdrawal in excess of the cumulative interest credited from the Guaranteed Period Options at the time of the withdrawal may be subject to an Excess Interest Adjustment. Any systematic withdrawal in excess of Your remaining Surrender Charge Free Amount may be subject to a surrender charge. Any systematic withdrawal could reduce Your rider values (perhaps significantly). 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.

Access Rider

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

Please note that the Access Rider does not eliminate any Excess Interest Adjustment, nor does it modify other provisions.

Rider Fee. A rider fee equal to an effective annual rate of 0.20% of the daily net asset value in the Separate Account is deducted in calculating the Accumulation Unit values.

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Termination. The rider is irrevocable.

Please note:

• This feature terminates upon Annuitization and there is a mandatory Annuity Commencement Date.

• We may credit interest in the Fixed Account (if available) at a different rate if You select this rider.

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

The Access Rider may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

Additional Death Distribution^SM

The optional Additional Death Distribution^SM rider pays an additional amount (based on rider earnings, if any, since the rider was issued) when a death benefit is payable during the accumulation phase under Your policy, in certain circumstances. The Additional Death Distribution^SM is only available for issue ages through age 75. The Additional Death Distribution^SM is only available with the Return of Premium Death Benefit or the Annual Step-Up Death Benefit. Please Note: This rider may not be issued or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The Additional Death Distribution benefit is based on our claims-paying ability.

The Additional Death Distribution^SM may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

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

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

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

Rider earnings are policy gains accrued and not previously withdrawn since the rider date. This amount is equal to the current Policy Value minus the Policy Value on the rider date minus premiums paid after the rider date plus amounts withdrawn after the rider date that exceed rider earnings on the date of the withdrawal. No benefit is payable under the Additional Death Distribution^SM rider if there are no rider earnings on the date the death benefit is calculated.

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

The Additional Death Distribution^SM factor is 40% for issue ages under 71 and 25% for issue ages 71-75, based on the Annuitant’s age.

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

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

Please see “Appendix - Additional Death Distribution Rider” for an example which illustrates the Additional Death Distribution^SM payable as well as the effect of a withdrawal on the Additional Death Distribution^SM benefit amount.

Spousal Continuation. If a spouse is eligible to and elects to continue the policy as the new Owner instead of receiving a death benefit and Additional Death Distribution^SM, the spouse will generally receive a one-time Policy Value increase equal to the Additional Death Distribution^SM. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider through age 75 if the Additional Death Distribution benefit is still being offered. Certain Owners may have the option to continue the rider without receiving the one-time Policy Value increase. See TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements. (The payment of a death benefit under the policy is triggered by the death of the Annuitant.)

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Rider Fee. There is an additional charge for this rider which is a percentage of the Policy Value which is deducted annually on each rider anniversary prior to Annuitization. We will also deduct this fee upon full surrender of the policy or other termination of the rider. The rider fee is deducted pro rata from each investment option. The fee is deducted even during periods when the Additional Death Distribution^SM would not pay any benefit (because there are no rider earnings).

Termination. The rider will remain in effect until:

• You cancel it by notifying our Administrative Office in writing,

• the policy is Annuitized or surrendered,

• the Policy Value becomes zero, or

• the Additional Death Distribution^SM is paid or added to the Policy Value under a spousal continuation.

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

Please note: This feature terminates upon Annuitization.

Additional Death Distribution+^SM

The optional Additional Death Distribution+^SM rider pays an additional amount (based on the benefit base) when a death benefit is payable during the accumulation phase under Your policy, in certain circumstances. The Additional Death Distribution+^SM is only available for issue ages through age 69. The Additional Death Distribution+^SM is only available with the Return of Premium Death Benefit or the Annual Step-Up Death Benefit. Please Note: This rider may not be issued or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The Additional Death Distribution+ benefit is based on our claims-paying ability.

The Additional Death Distribution+^SM may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

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

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

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

The rider benefit base at any time is equal to the Policy Value less any premium payments added after the rider date.

The rider benefit percentage equals 30% for issue ages 0 - 69 based on the Annuitant’s age.

No benefit is payable under the Additional Death Distribution+^SM if the Policy Value on the date the death benefit is paid is less than the premium payments after the rider date.

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

Please see “Appendix - Additional Death Distribution+^SM Rider” for an example that illustrates the additional death benefit payable as well as the effect of a withdrawal on the Additional Death Distribution+^SM benefit amount.

Spousal Continuation. If a spouse is eligible to and elects to continue the policy as the new owner instead of receiving the death benefit and Additional Death Distribution+^SM, then the spouse will generally receive a one-time Policy Value increase equal to the Additional Death Distribution+^SM. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider through age 69 if the Additional Death Distribution+ benefit is still being offered. Certain owners may have the option to continue the rider without receiving the one-time Policy Value increase. See TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements. (The payment of a death benefit under the policy is triggered by the death of the Annuitant.)

Rider Fee. There is an additional charge for this rider which is a percentage of the Policy Value, which, is deducted annually on each rider anniversary prior to Annuitization. We will also deduct this fee upon full surrender of the policy or other termination of the rider.

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

Termination. The rider will remain in effect until:

• You cancel it by notifying our Administrative Office in writing in good order,

• the policy is Annuitized or surrendered,

• the Policy Value becomes zero, or

• the additional death benefit is paid or added to the Policy Value under a spousal continuation.

Please note: This feature terminates upon Annuitization.

Nursing Care and Terminal Condition Waiver

No surrender charges or Excess Interest Adjustments will apply if You take a withdrawal ($1,000 minimum), under certain circumstances, because You or Your spouse has been:

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

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

You may exercise this benefit at any time during the accumulation phase. This benefit is also available to the Annuitant or Annuitant's spouse if the Owner is not a natural person. There is no restriction on the maximum amount You may withdraw under this benefit. There is no charge for this benefit.

The Nursing Care and Terminal Condition Waiver may vary for certain policies and may not be available for all policies, in all states or at all times.

Unemployment Waiver

No surrender charges or Excess Interest Adjustments will apply to withdrawals after You or Your spouse become unemployed due to:

• involuntary termination of employment

• involuntary lay off;

In order to qualify, You (or Your spouse, whichever is applicable) must have been:

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

• employed full time on the Policy Date;

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

• must have a minimum Cash Value at the time of withdrawal of $5,000; and

• You (or Your spouse) must be receiving unemployment benefits.

You must provide written proof from Your State's Department of Labor, which verifies that You qualify for and are receiving unemployment benefits at the time of withdrawal.

You may use this benefit at any time during the accumulation phase and for so long as You meet the criteria specified above. This benefit is also available to the Annuitant or Annuitant's spouse if the Owner is not a natural person. There is no restriction on the maximum amount You may withdraw under this benefit. There is no charge for this benefit.

The Unemployment Waiver may vary for certain policies and may not be available for all policies, in all states or at all times.

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.

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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-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. Please note that the telephone and/or electronic device transactions may not always be available. Any telephone, fax 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.

Dollar Cost Averaging programs that may be available under Your policy:

• Traditional – 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, transfers will begin as soon as the program is started. A minimum of $500 per transfer is required. The minimum number of transfers is 6 monthly transfers or 4 quarterly transfers, and the maximum is 24 monthly transfers or 8 quarterly transfers. You can elect to transfer from the Fixed Account, money market or other specified Subaccount. If You elect to transfer from the Fixed Account, or if You elect to transfer from the money market or other specified Subaccount and 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 the money market or other Subaccount is elected as the source fund and 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 ou would like any remaining value to stay within the Subaccount.

• Special – You may only elect either a six or twelve month program. Transfers will begin as soon as the program is started. You cannot transfer from another investment option into a Special Dollar Cost Averaging program. This program is only available for new premium payments, requires transfers from a fixed source, and may credit a higher or lower interest rate than a traditional program. A minimum of $500 per transfer is required ($3,000 or $6,000 to start a 6-month or 12-month program, respectively). If the value in the source fund is less than the scheduled transfer, 100% of the value remaining in the source fund will be transferred for the final transfer.

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. If a certain date does not exist for a specific month (e.g. 29^th, 30^th, or 31^st), the Dollar Cost Averaging will move forward to the 1^st of the following month for that month only and return to the specified date once it is available. 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.

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IF:

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

THEN:

• any amount allocated to a fixed source will be invested in that fixed source but will be transferred to the money market investment option within 30 days of allocation to fixed source if new Dollar Cost Averaging instructions are not received;

• any amount allocated to a variable source will be invested in that variable source 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. Transfers from a Dollar Cost Averaging fixed source are not subject to an Excess Interest Adjustment. A Dollar Cost Averaging program can be used in conjunction with Asset Rebalancing and may be available with the Guaranteed Lifetime Withdrawal Benefits. Any amount in the Dollar Cost Averaging source account or any Fixed Account are 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. See Your policy for availability of the Fixed Account options. 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. Asset rebalancing ignores amounts in the Fixed Account. You can choose to rebalance monthly, quarterly, semi-annually, or annually. Asset rebalancing can be used in conjunction with a Guaranteed Lifetime Withdrawal Benefit. There is no charge for this benefit. We reserve the right to terminate the availability of any asset rebalancing program at any time.

Guaranteed Lifetime Withdrawal Benefits

You may elect one of the following optional riders under the policy that offers Guaranteed Lifetime Withdrawal Benefits - the Transamerica Principal Optimizer^SM rider, the Retirement Income Max^® 1.2 rider, the Retirement Income Choice^® 1.7 rider and the Transamerica Income Edge^SM 1.2 rider. Some important aspects of each of these riders are summarized in the Guaranteed Lifetime Withdrawal Benefit Comparison Table below and are described in more detail. Please Note: There are investment restrictions associated with these benefits that can limit participation in market gains. Withdrawals taken in excess of the prescribed limits (rider withdrawal amount) will reduce the amount of the benefit and may eliminate the benefit altogether, if the amount of the excess withdrawal exceeds the Policy Value at the time of the withdrawal. Withdrawals taken while the contract value is greater than zero are withdrawals of the Owner’s own money (not the Company’s). You should consult with tax and financial professionals to determine which of these riders, if any, is appropriate for You.

Guaranteed Lifetime Withdrawal Benefit Comparison Table

Transamerica Principal OptimizerSM Rider	Retirement Income Max® 1.2 Rider	Retirement Income Choice® 1.7 Rider	Transamerica Income EdgeSM 1.2 Rider
Election: At Issue Post Issue	Election: At Issue Post Issue	Election: At Issue Post Issue	Election: At Issue Post Issue
Cannot be elected if You have Retirement Income Max® 1.2, Retirement Income Choice® 1.7 or Transamerica Income EdgeSM 1.2 riders.	Cannot be elected if You have Transamerica Principal OptimizerSM, Retirement Income Choice® 1.7 or Transamerica Income EdgeSM 1.2 riders.	Cannot be elected if You have Retirement Income Max® 1.2, Transamerica Principal OptimizerSM or Transamerica Income EdgeSM 1.2 riders.	Cannot be elected if You have Retirement Income Max® 1.2, Retirement Income Choice® 1.7 or Transamerica Principal OptimizerSM riders.

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Transamerica Principal OptimizerSM Rider	Retirement Income Max® 1.2 Rider	Retirement Income Choice® 1.7 Rider	Transamerica Income EdgeSM 1.2 Rider
Benefit: Provides: (1)Guaranteed Minimum Accumulation Benefit (“GMAB”) – i.e., on the rider anniversary after the applicable waiting period (10 or 7 years) (“guaranteed future value date”), Your Policy Value will at least equal Your guaranteed future value. After that date, the guaranteed future value equals zero, unless an optional reset is elected. (2)Guaranteed Lifetime Withdrawal Benefit (“GLWB”) - i.e., a series of level cash withdrawals (and payments from us, when Policy Value is reduced to zero) regardless of the performance of the investment options You select.(3)Automatic Step-Up– On each rider anniversary, the withdrawal base receives an automatic step-up if the withdrawal base is set equal to the Policy Value on the rider anniversary or the highest Policy Value in the previous rider year based on the valuation frequency. You can opt out of the automatic step-up if the automatic step-up would result in an increase in the rider fee percentage.	Benefit: Provides: (1)Guaranteed Lifetime Withdrawal Benefit (“GLWB”) - i.e., a series of level cash withdrawals (and payments from us, when Policy Value is reduced to zero) regardless of the performance of the designated investment options that You select. (2)Step-Up Component– On each rider anniversary the step-up component will be the greatest of the current step-up component, the Policy Value on the rider anniversary, and the highest Policy Value based on the valuation frequency.(3)Growth Component - On each of the first 10 rider anniversaries, the growth component will equal the current growth component plus the growth basis multiplied by the growth rate percentage, if no withdrawal occurred during the preceding rider year. The growth basis is equal to the initial growth component on the rider date. During any rider year the growth component and growth basis are increased by subsequent premium payments and is reduced for any excess withdrawals. On each rider anniversary the growth basis will be equal to the current growth basis multiplied by 1+ the growth rate percentage. In any year in which a withdrawal is taken, or after the 10th rider anniversary, the growth rate will be set to 0.00%. The growth rate percentage is disclosed in the applicable Rate Sheet Prospectus Supplement.(4)Automatic Step-Up - On each rider anniversary, the rider receives an automatic step-up if the withdrawal base is set equal to the Policy Value on the rider anniversary or the highest Policy Value in the previous rider year based on the valuation frequency. You can opt out of the automatic step-up if the automatic step-up would result in an increase in the rider fee percentage.	Benefit: Provides: (1)Guaranteed Lifetime Withdrawal Benefit (“GLWB”) - i.e., a series of level cash withdrawals (and payments from us, when Policy Value is reduced to zero) regardless of the performance of the designated investment options that You select. (2)Step-Up Component– On each rider anniversary the step-up component will be the greatest of the current step-up component, the Policy Value on the rider anniversary, and the highest Policy Value based on the valuation frequency.(3)Growth Component - On each of the first 10 rider anniversaries, the growth component will equal the current growth component plus the growth basis multiplied by the growth rate percentage, if no withdrawal occurred during the preceding rider year. The growth basis is equal to the initial growth component on the rider date. During any rider year the growth component and growth basis are increased by subsequent premium payments and is reduced for any excess withdrawals. The growth rate percentage is disclosed in the applicable Rate Sheet Prospectus Supplement.(4)Automatic Step-Up - On each rider anniversary, the rider receives an automatic step-up if the withdrawal base is set equal to the Policy Value on the rider anniversary or the highest Policy Value in the previous rider year based on the valuation frequency. You can opt out of the automatic step-up if the automatic step-up would result in an increase in the rider fee percentage.	Benefit: Provides: (1)Guaranteed Lifetime Withdrawal Benefit (“GLWB”) - i.e., a series of level cash withdrawals (and payments from us, when Policy Value is reduced to zero) regardless of the performance of the investment options that You select. (2)Automatic Step-Up - On each rider anniversary, the rider receives an automatic step-up if the withdrawal base is set equal to the Policy Value on the rider anniversary or the highest Policy Value in the previous rider year based on the valuation frequency. You can opt out of the automatic step-up if the automatic step-up would result in an increase in the rider fee percentage.
Investor Need Rider Addresses:• Protection of Assets• Retirement income for life• Broad range of investment choices	Investor Need Rider Addresses:• Retirement income for life• Conservative range of investment choices	Investor Need Rider Addresses:• Retirement income for life• Moderate range of investment options• Income for long term care	Investor Need Rider Addresses:• Retirement income for life• Broad range of investment choices

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Transamerica Principal OptimizerSM Rider	Retirement Income Max® 1.2 Rider	Retirement Income Choice® 1.7 Rider	Transamerica Income EdgeSM 1.2 Rider
Additional Options: (1)Joint Life Option—You may elect to postpone termination of the rider until the later of the death of the Annuitant or the death of the Annuitant's spouse. The Annuitant's spouse must be either a joint Owner (along with the Annuitant) or the sole primary beneficiary (without a joint Owner). The use of joint life option may not be permitted in the case of certain non-natural Owners. (2) Optional Reset—On each rider anniversary up to and including the rider anniversary following the oldest Annuitant’s 85th birthday, You may elect to reset the guaranteed future value and the guaranteed future value date.	Additional Options: Joint Life Option—You may elect to postpone termination of the rider until the later of the death of the Annuitant or the death of the Annuitant's spouse. The Annuitant's spouse must be either a joint Owner (along with the Annuitant) or the sole primary beneficiary (without a joint Owner). The use of joint life option may not be permitted in the case of certain non-natural Owners.	Additional Options: (1)Death Benefit Option—You may elect an option that may add an amount to the death benefit payable under the base policy. (2) Joint Life Option—You may elect to postpone termination of the rider until the later of the death of the Annuitant or the death of the Annuitant's spouse. The Annuitant's spouse must be either a joint Owner (along with the Annuitant) or the sole primary beneficiary (without a joint Owner). The use of joint life option may not be permitted in the case of certain non-natural Owners. (3) Income EnhancementSM Option—If the rider has been in effect for at least 12 months, then You may elect to have Your withdrawal percentage increase to 150% of the non-income enhanced withdrawal percentage if either the Annuitant or the Annuitant's spouse, if the joint life option is elected, is confined in a hospital or nursing facility because of a medical necessity, and has been so confined for an “elimination period” (i.e., 90 days within the last 365 days). You cannot elect this option if the qualifying person(s) is/are already confined in a hospital or nursing facility when the rider is elected. In addition, the increase to the withdrawal percentage stops when the qualifying person(s) is/are no longer confined.	Additional Options: (1)Joint Life Option—You may elect to postpone termination of the rider until the later of the death of the Annuitant or the death of the Annuitant's spouse. The Annuitant's spouse must be either a joint Owner (along with the Annuitant) or the sole primary beneficiary (without a joint Owner). The use of joint life option may not be permitted in the case of certain non-natural Owners.
Availability: Younger than age 86(unless state law requires a lower maximum issue age.	Availability: Younger than age 86 (unless state law requires a lower maximum issue age).	Availability: Younger than age 86 (unless state law requires a lower maximum issue age).	Availability: Younger than age 86 (unless state law requires a lower maximum issue.
Current Charge: You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.	Current Charge: You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.	Current Charge: You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.	Current Charge: You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.
Investment Restrictions: You must allocate a certain percentage of Your Policy Value to the Stable Account, the select investment options and the flexible investment options as provided in the Rate Sheet Prospectus Supplement. Upon rebalancing, a certain percentage of Your Policy Value (excluding the Stable Account) must be allocated to the select investment options and the flexible investment options.	Investment Restrictions: You must allocate 100% of Your Policy Value to one or more investment options that we designate.	Investment Restrictions: You must allocate 100% of Your Policy Value to one or more investment options that we designate.	Investment Restrictions: You must allocate a certain percentage of Your Policy Value to the Stable Account, the select investment options and the flexible investment options as provided in the Rate Sheet Prospectus Supplement. Upon rebalancing, a certain percentage of Your Policy Value (excluding the Stable Account) must be allocated to the select investment options and the flexible investment options.
Effect of Withdrawals: Withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base (the rider withdrawal amount will not be reduced). Withdrawals greater than the rider withdrawal amount in any rider year will reduce the withdrawal base, which will, in turn, reduce the rider withdrawal amount.	Effect of Withdrawals: Withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base (the rider withdrawal amount will not be reduced). Withdrawals greater than the rider withdrawal amount in any rider year will reduce the withdrawal base, which will, in turn, reduce the rider withdrawal amount.	Effect of Withdrawals: Withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base (the rider withdrawal amount will not be reduced). Withdrawals greater than the rider withdrawal amount in any rider year will reduce the withdrawal base, which will, in turn, reduce the rider withdrawal amount.	Effect of Withdrawals: Withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base (the rider withdrawal amount will not be reduced). Withdrawals greater than the rider withdrawal amount in any rider year will reduce the withdrawal base, which will, in turn, reduce the rider withdrawal amount.

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Transamerica Principal OptimizerSM Rider	Retirement Income Max® 1.2 Rider	Retirement Income Choice® 1.7 Rider	Transamerica Income EdgeSM 1.2 Rider
Withdrawal Percentages (Single Life): The withdrawal percentage is disclosed in the applicable Rate Sheet Prospectus Supplement. You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.	Withdrawal Percentages (Single Life): The withdrawal percentage is disclosed in the applicable Rate Sheet Prospectus Supplement. You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.	Withdrawal Percentages (Single Life): The withdrawal percentage is disclosed in the applicable Rate Sheet Prospectus Supplement. You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.	Withdrawal Percentages (Single Life): The withdrawal percentage is disclosed in the applicable Rate Sheet Prospectus Supplement. You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.
Withdrawal Percentages (Joint Life): The withdrawal percentage is disclosed in the applicable Rate Sheet Prospectus Supplement. You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.	Withdrawal Percentages (Joint Life): The withdrawal percentage is disclosed in the applicable Rate Sheet Prospectus Supplement. You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.	Withdrawal Percentages (Joint Life): The withdrawal percentage is disclosed in the applicable Rate Sheet Prospectus Supplement. You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.	Withdrawal Percentages (Joint Life): The withdrawal percentage is disclosed in the applicable Rate Sheet Prospectus Supplement. You may contact us at www.transamerica.com for the current Rate Sheet Prospectus Supplement applicable for this rider.

Transamerica Principal Optimizer^SM Rider

If You elect the Transamerica Principal Optimizer^SM rider identified below, which provides certain guaranteed benefits, the Company requires a certain percentage of Your Policy Value to be allocated to the Stable Account, with the remainder to be allocated to the select investment options and flexible investment options. One of more of the select investment options and flexible investment options may include a volatility control strategy. Volatility control strategies, in periods of high market volatility, could limit Your participation in market gains; this may conflict with Your investment objectives by limiting Your ability to maximize potential growth of Your Policy Value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns. Volatility control (and similar terms) can encompass a variety of investment strategies of different types and degrees; therefore, You should read the applicable annuity and underlying fund portfolio prospectuses carefully to understand how these investment strategies may affect Your Policy Value and rider benefits. The Company’s requirement to invest in accordance with the required allocations, which may include volatility control strategies, may reduce our costs and risks associated with this rider. You pay an additional fee for the rider benefits which, in part, pays for protecting the rider benefit base from investment losses. Since the rider benefit base does not decrease as a result of investment losses, volatility control strategies might not provide meaningful additional benefit to You. You should carefully evaluate with Your financial professional whether to allocate to Subaccounts that invest in underlying funds with volatility control strategies, taking into consideration the potential positive or negative impact that such strategy may have on Your investment objectives, Your Policy Value and the benefits under the Transamerica Principal Optimizer^SM rider. If You determine that funds with volatility control strategies are not consistent with Your investment objectives, other investment options are available under the Transamerica Principal Optimizer^SM rider that do not invest in funds that utilize volatility control strategies.

Transamerica Principal Optimizer^SM - Summary

You may elect to purchase the optional Transamerica Principal Optimizer^SM rider which provides You with both a Guaranteed Lifetime Withdrawal Benefit and a Guaranteed Minimum Accumulation Benefit. The Transamerica Principal Optimizer^SM rider is only available during the accumulation phase and requires that You allocate a certain percentage of Your Policy Value to the Stable Account and to select investment options and flexible investment options, some of which are designed to help manage our risk and support the guarantees under the rider. The maximum issue age may be lower if required by state law. If You elect the Transamerica Principal Optimizer^SM rider You cannot elect the Retirement Income Max ^® 1.2, Retirement Income Choice ^® 1.7 or the Transamerica Income Edge^SM 1.2 riders. The tax rules for qualified policies may limit the value of this rider. Please Note: There are investment restrictions associated with this benefit that can limit participation in market gains. Withdrawals taken in excess of the prescribed limits (rider withdrawal amount) will reduce the amount of the benefit and may eliminate the benefit altogether, if the amount of the excess withdrawal exceeds the Policy Value at the time of the withdrawal. The fee for the rider will not be reduced for any investment losses to Policy Value and, in fact, may be increased if there are withdrawals taken in excess of the rider withdrawal amount. Withdrawals taken while the contract value is greater than zero are withdrawals of the Owner’s own money (not the Company’s). Please consult a qualified financial professional before electing the Transamerica Principal Optimizer^SM rider for a qualified policy.

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Please Note: This rider may not be issued to or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The benefits under the Transamerica Principal Optimizer^SM rider are based on our claims-paying ability.

The Transamerica Principal Optimizer^SMrider may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

If You elect the Transamerica Principal Optimizer^SM rider, a certain percentage of Your Policy Value on the rider date must be allocated to the Stable Account, the select investment options and the flexible investment options, as specified in the applicable Rate Sheet Prospectus Supplement. Transfers to and from the Stable Account are not permitted. Withdrawals from the Stable Account are not permitted until all other investment options are depleted of value. Withdrawals from the flexible investment options and select investment options, will be deducted on a pro-rata basis from each investment option You have allocated to. If You do not wish to maintain the required allocation percentages for the investment options, the rider must be terminated, subject to the termination restrictions and requirement of the rider, prior to making any transfer. Additional detail regarding the required allocation is provided in the Transamerica Principal Optimizer^SM - Required Allocations section, below.

You should view the Transamerica Principal Optimizer^SM rider as a way to permit You to invest in variable investment options while still having Your Policy Value and liquidity protected to the extent provided by the Transamerica Principal Optimizer^SM rider.

Please note:

• You do not have any protection under the Guaranteed Minimum Accumulation Benefit unless You hold the policy with the rider until the end of the applicable waiting period (10 or 7 years).

• The longer You wait to start making withdrawals under the benefit, the less time You have to benefit from the Guaranteed Lifetime Withdrawal Benefit due to the decreasing life expectancy as You age. On the other hand, the longer You wait to begin making withdrawals, the higher Your withdrawal percentage may be, and the more opportunities You will have to lock in a high withdrawal base. Withdrawals will decrease the guarantees provided by the Guaranteed Minimum Accumulation Benefit. You should carefully consider when to begin making withdrawals. There is a risk that You will not begin making withdrawals at the most financially beneficial time for You.

• All Policy Value must be allocated to the select and flexible investment options and the Stable Account, subject to specified allocation percentages as provided in the Rate Sheet Prospectus Supplement. You should consult with Your financial advisor to assist You in determining whether these investment options and required allocations are suited for Your financial needs and risk tolerance.

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

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

• Because the Guaranteed Lifetime Withdrawal Benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for You if You do not foresee a need for liquidity and Your primary objective is to take the maximum advantage of the tax deferral aspect of the policy.

• Any withdrawal in any rider year that is in excess of the rider withdrawal amount is an excess withdrawal. The rider year begins on the rider date and thereafter on each rider anniversary.

• An excess withdrawal will impact the withdrawal base on a greater than dollar-for-dollar basis when the Policy Value, after the rider withdrawal amount is withdrawn, is less than the rider withdrawal base and may eliminate the benefits. See “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders”.

• Upon receiving due proof of death of the Annuitant (or the death of the surviving spouse if the joint option is elected), the Transamerica Principal Optimizer^SM rider terminates and all benefits thereunder cease.

• You may terminate the rider by providing Written Notice to us requesting termination during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter. See Termination section, below.

• If Your Policy Value reaches zero, the Company may require satisfactory evidence a person is alive if a payment is based on that person being alive. For example, a notarized letter may be provided as satisfactory evidence a person is living.

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• The tax rules for qualified policies may limit the value of this rider. Please consult a qualified financial professional before electing the Transamerica Principal Optimizer^SM rider for a qualified policy.

• Withdrawals up to the rider withdrawal amount are not subject to an Excess Interest Adjustment.

Like all withdrawals, withdrawals up to the rider withdrawal amount, while this rider is in effect also:

• reduce Your Policy Value by the amount of the withdrawal;

• reduce Your base policy death benefit and other benefits;

• reduce the Guaranteed Minimum Accumulation Benefit;

• may be subject to surrender charges if the withdrawal is greater than the Surrender Charge Free Amount;

• may be subject to income taxes and federal tax penalties (see TAX INFORMATION); and

• may be limited or restricted under certain qualified policies. (See TAX INFORMATION - Qualified Policies and TAX INFORMATION - Optional Living Benefits).

Transamerica Principal Optimizer^SM - Guaranteed Minimum Accumulation Benefit

If You elect the Transamerica Principal Optimizer^SM rider, we will provide a guaranteed future value. This benefit is intended to provide a level of protection regardless of the performance of the variable investment options You select. The level of protection under the Guaranteed Minimum Accumulation Benefit may not be 100% of Your premium payments and is only in effect for the term of the elected option.

Guaranteed Future Value. We guarantee that, on the guaranteed future value date (ten, or seven years after You elect the rider, depending on the waiting period elected), Your Policy Value will at least equal Your guaranteed future value. The guaranteed future value on the rider date (i.e., the date the rider is added to the policy) is equal to the Policy Value multiplied by the protection level percentage of the elected waiting period. After the rider date (up to and including the guaranteed future value date) the guaranteed future value is equal to:

• the guaranteed future value on the rider date; plus

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

• the protection level percentage; less

• subsequent adjusted withdrawals (as described below).

Unless an optional reset is chosen, after the guaranteed future value date, the guaranteed future value equals zero and there will be no guaranteed future value adjustment.

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

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

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Guaranteed Future Value Adjusted Withdrawals. If You take a withdrawal, even withdrawals under the Guaranteed Lifetime Withdrawal Benefit, it will reduce Your guaranteed future value. The amount of the reduction is referred to as the adjusted withdrawal amount, which will be equal to the greater of:

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

• the gross withdrawal amount.

(The gross withdrawal amount is the amount You request, plus any surrender charges that may be applicable.)

In other words, if Your Policy Value is greater than the guaranteed future value at the time You take a withdrawal, then Your guaranteed future value is reduced by the same amount we reduce Your Policy Value. However, if Your Policy Value is less than the guaranteed future value at the time You take a withdrawal, then Your guaranteed future value will be reduced by more than the amount by which we reduce Your Policy Value.

See the “Appendix – Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” to this prospectus for examples showing the effect of hypothetical withdrawals in more detail, including withdrawals that reduce the guaranteed future value by more than the amount of the gross withdrawal.

Guaranteed Minimum Accumulation Benefit. After the waiting period (ten years or seven years after You elect the rider, depending on the waiting period elected), and on the guaranteed future value date, if the Policy Value is less than the guaranteed future value, we will calculate an amount equal to the difference between Your Policy Value (the Policy Value will then be subject to investment risk) and the guaranteed future value, and this amount will be added on the guaranteed future value date. This addition will not be considered premium and will not increase Your withdrawal base or any other policy benefits. After the guaranteed future value date, the guaranteed future value will be zero, unless an optional reset is elected.

Example.Assume You are age 65 and make a single premium payment of $100,000, the guaranteed future value is $100,000 and the protection level percentage is 100%. You do not take any withdrawals or add any additional premium payments. If, on the guaranteed future value date, Your Policy Value has declined to $90,000 because of negative investment performance, then we will add $10,000 ($100,000 x 100% - $90,000) to Your Policy Value.

Optional Reset. On each rider anniversary, up to and including the rider anniversary on or following the Annuitant’s (or the Annuitant’s spouse’s, if older and the joint life option is elected) 85^th birthday You may elect to reset the guaranteed future value date and the guaranteed future value once each rider year. Upon optional reset, the waiting period originally elected (ten years or seven years) will begin from the most recent rider anniversary. The guaranteed future value will be set to equal the Policy Value multiplied by the protection level percentage as of the date the reset election is processed.

Your request must be received, in a manner acceptable to us, no later than 30 days following the most recent rider anniversary. The optional reset does not require termination of the existing rider. The existing rider will continue with the same rider effective date and features.

At the time of an optional reset the protection level percentage may be changed, but will never be less than the minimum protection level percentage disclosed. Additionally, the rider fee percentage may be changed at the time of an optional reset, but the fee percentage will never be more than the maximum fee percentage in effect when the rider was elected.

The optional reset will only impact the Guaranteed Minimum Accumulation Benefit and does not impact the Guaranteed Lifetime Withdrawal Benefit or any other values of the policy.

You have the right to revoke an optional reset within 30 days following the date on which the optional reset was effective, if the rider fee percentage increases beyond the rider fee percentage immediately prior to the rider anniversary, or the protection level percentage decreases. If You revoke an optional reset, You must notify us in a manner acceptable to us, however, You will remain eligible for future optional resets. If an optional reset is revoked, the guaranteed future value date, guaranteed future value, rider fee percentages and protection level percentages will be reversed to the values and dates that were in effect for Your rider immediately prior to the election of the optional reset.

Example.Assume You are age 65 and make a single premium payment of $100,000 on January 31^st of the current year with a 10 year waiting period. The guaranteed future value date will be set to 10 years from that date and the guaranteed future value is $100,000 assuming a protection level percentage is 100%. On the first rider anniversary, Your Policy Value has increased to $110,000 and You choose an optional reset. This results in a new guaranteed future value date 10 years from the date of the optional reset and a new guaranteed future value of $110,000 assuming the protection level percentage remains at 100%.

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Please note: You do not have any protection under the Guaranteed Minimum Accumulation Benefit unless You hold the policy with the rider until the end of the applicable waiting period. If You think that You may terminate the policy or elect to start receiving annuity payments (or if You must begin taking required minimum distributions) before the guaranteed future value date, electing the rider may not be in Your best interests.

Transamerica Principal Optimizer^SM - Guaranteed Lifetime Withdrawal Benefit

If You elect the Transamerica Principal Optimizer^SM rider, You can receive up to the rider withdrawal amount each rider year. Such rider withdrawal amounts will first be made as withdrawals from Your Policy Value (excluding the Stable Account until other investment options are depleted of value). If Your Policy Value goes to zero by other than an excess withdrawal, rider withdrawal amounts will continue as payments from us. Rider withdrawal amounts may begin the rider year immediately following the Annuitant’s (or the Annuitant’s spouse if younger and the joint life option is elected) attainment of the minimum benefit age, and may last until the Annuitant’s (or surviving spouse’s if joint life option is elected) death unless Your withdrawal base is reduced to zero because of an “excess withdrawal.” See Withdrawal Base Adjustments section below for more information. A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date. The withdrawal percentage that is used to determine Your rider withdrawal amount and required allocations will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

Of course, You can always withdraw an amount up to Your Cash Value pursuant to Your right under the policy although withdrawals that are excess withdrawals will reduce Your withdrawal base and future GLWBs. See “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Transamerica Principal Optimizer^SM - Rider Withdrawal Amount

You can withdraw up to the rider withdrawal amount in any rider year (after attainment of the minimum benefit age) from Your policy without causing an excess withdrawal. See Withdrawal Base Adjustments below.

The rider withdrawal amount is zero if the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has not attained the minimum benefit age on the rider date and remains zero until the first day of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age. On the first day of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage. See applicable Rate Sheet Prospectus Supplement for the applicable minimum benefit age and withdrawal percentages. Surrender charges may apply if Your rider withdrawal amount exceeds Your Surrender Charge Free Amount.

For qualified policies: If the plan participant (generally the Annuitant) attains age 72 (or age 70½ if the Annuitant attained 70½ before 1/1/2020), the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

• the rider withdrawal amount described above; or

• an amount equal to any minimum required distribution amount, if any. For riders added on the Policy Date, the minimum required distribution during the first rider year is based on the initial premium (initial premium could include premium from transfers received after the policy effective date, but must be deemed initial premium). For riders added after the Policy Date, if the policy to which the rider is attached was in force on December 31^st of the previous year, the minimum required distribution for the first rider year is calculated using the year-end Policy Value plus any actuarial present value from the previous year. For riders added after the Policy Date and the policy to which the rider is attached was not in force on December 31^st of the previous year, the minimum required distribution for the first rider year is based on the Policy Value on the rider date. The minimum required distribution is calculated based on the rules established by the IRS. The minimum required distribution may only be used if all of the following are true:

a.  the policy to which this rider is attached is a tax-qualified policy for which the IRS minimum required distributions are required,

b.  the minimum required distributions do not start prior to the Annuitant’s attained age of 72 (or age 70½ if the Annuitant attained 70½ before 1/1/2020),

c.	the minimum required distributions are based on either the Uniform Lifetime table or the Joint Life and Last Survivor Expectancy table,
d.	the minimum required distributions are based on age of the living Annuitant. The minimum required distributions cannot be based on the age of someone who is deceased,
e.	the minimum required distributions are based only on the policy to which this rider is attached,

49

f.	the minimum required distributions are only for the current rider year. Amounts carried over from past rider years are not considered, and
g.	If an excess withdrawal is taken in the previous rider year, the minimum required distribution will not be used in calculating the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will be treated as an excess under the rider.

If any of the above are not true, then the minimum required distribution is equal to zero and it is not available as a rider withdrawal amount.

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

If Your Policy Value reaches zero:

• by means other than an excess withdrawal, then You cannot make premium payments and all other policy features, benefits and guarantees (except those provided by this rider) are terminated. If Your Policy Value reaches zero by other than an excess withdrawal, and the rider remains in force, we will, unless otherwise instructed, make payments using the current payment instructions on file with us that are equal to the rider withdrawal amount divided by the frequency of payments. If the Annuitant (or younger of Annuitant or Annuitant’s spouse if the joint option is elected) has attained the minimum benefit age and a systematic payout option is not active at the time the Policy Value equals zero, a payment will be established. Unless instructed otherwise, the default frequency will be monthly, unless the amount does not meet the minimum systematic payout requirements in Your policy. If that occurs, we reserve the right to change the frequency and amount in order to meet the minimum systematic payout requirements. If the minimum benefit age has not been attained, payments will begin on the rider anniversary following the attainment of the minimum benefit age. Once the payment amount and frequency are established, they cannot be changed and no additional withdrawals will be allowed. Furthermore, any remaining minimum required Cash Value will be paid on the later of the Annuitant’s or the Annuitant’s spouse’s death.

• due to an excess withdrawal, then Your policy will terminate resulting in the termination of this rider. An excess withdrawal that does not cause Your Policy Value to equal zero will not terminate the rider.

Please note:

• If the rider is added prior to the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) attaining the minimum benefit age, the rider withdrawal amount will be zero until the beginning of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age, however, You will still be charged a rider fee upon electing the rider.

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

• The rider year begins on the rider date and thereafter on each rider anniversary.

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

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

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

• The select and flexible investment options may be changed by us in the future. Any changes to investment allocation requirements will not affect existing policy Owners with an active rider.

Withdrawals under the Guaranteed Lifetime Withdrawal Benefit also:

• reduce Your Policy Value;

• reduce the guaranteed future value;

• reduce Your death benefit and other benefits;

• may be subject to surrender charges if the withdrawal is greater than the Surrender Charge Free Amount;

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

Rate Sheet Prospectus Supplement

The withdrawal and fee percentages, as well as the required allocations, protection level percentage, valuation frequency and minimum benefit age are disclosed in the Rate Sheet Prospectus Supplement. We periodically issue new Rate Sheet Prospectus Supplements that may reflect different withdrawal and fee percentages, required allocations, protection level percentages as well as

50

valuation frequency and minimum benefit age than the previous Rate Sheet Prospectus Supplements. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC). Additionally, all superseded Rate Sheet Prospectus Supplement fee and withdrawal rate percentages, required allocation, protection level percentages, valuation frequency and minimum benefit ages can be found in an Appendix to the SAI. In order to receive the applicable withdrawal and fee percentages, required allocations, protection level percentage, valuation frequency and minimum benefit age: (1) Your application must be signed and received within the stated time period set forth in the applicable Rate Sheet Prospectus Supplement and (2) Your application must be received and Your policy must be funded within the stated time periods set forth in the applicable Rate Sheet Prospectus Supplement. Withdrawal and fee percentages, required allocations, protection level percentage, as well as valuation frequency and minimum benefit age reflected in a Rate Sheet Prospectus Supplement with an effective period that does not include the date You signed Your application will not apply to Your policy. You should not purchase this rider without first obtaining the applicable Rate Sheet Prospectus Supplement. You can contact us at www.transamerica.com to receive a Rate Sheet Prospectus Supplement applicable to You.

Transamerica Principal Optimizer^SM – Withdrawal Percentage

We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the Annuitant’s age (or the Annuitant's spouse's age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the Annuitant’s (or the Annuitant's spouse's if younger and the joint life option is elected) attainment of the minimum benefit age.

The withdrawal percentage is disclosed in the Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

Please note: Once established, the withdrawal percentage will not change except in certain instances involving automatic step-ups. Withdrawal percentages will change when an automatic step-up occurs and You had crossed into another age band prior to the automatic step-up, seeAutomatic Step-Up section below.

Transamerica Principal Optimizer^SM – Withdrawal Base

We use the withdrawal base to calculate the rider withdrawal amount and the rider fee. The withdrawal base on the rider date is the Policy Value. During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to excess withdrawals.

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

1. the current withdrawal base;

2. the Policy Value on the rider anniversary; and

3. the highest Policy Value in the previous year based on the valuation frequency. (see Automatic Step-Up below).

Item 3 above will be zero if there have been any excess withdrawals in the current rider year.

See “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” which illustrates the hypothetical example of the withdrawal base calculation.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount and rider fee.

• Your withdrawal base is not a Cash Value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any Subaccount, and it is not a guarantee of Policy Value.

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

Transamerica Principal Optimizer^SM – Automatic Step-Up

On each rider anniversary the rider will receive an automatic step-up if the withdrawal base is set equal to item 2 or 3 from Transamerica Principal Optimizer^SM– Withdrawal Base section above. If neither value is greater than the current withdrawal base no automatic step-up will occur. If the withdrawal percentage has been established due to a previous withdrawal, the withdrawal percentage (as indicated in the Rate Sheet Prospectus Supplement) will increase if You have crossed into another age band prior to the automatic step-up. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC). Please note, the increase is part of the automatic step-up and if no automatic step-up occurs then there will be no withdrawal percentage increase.

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On each rider anniversary, the rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider.

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

Transamerica Principal Optimizer^SM – Withdrawal Base Adjustments

Cumulative gross withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Any amount of gross withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal (if the Policy Value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the Policy Value when the Policy Value is less than the withdrawal base), possibly to zero. If an excess withdrawal reduces the Policy Value to zero, this rider will terminate. Withdrawal base adjustments occur immediately following excess withdrawals. See “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base by a pro rata amount. The effect of an excess withdrawal is amplified if the Policy Value is less than the withdrawal base.

Please Note: You retain all responsibility for monitoring excess withdrawals. If You take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because Your regular or scheduled withdrawals may thereafter all be excess withdrawals that reduce or eliminate Your benefit on an accelerated basis.

Example. Assume You are the Owner and Annuitant and You make a single premium payment of $100,000 when You are 66 years old. Further assume that You do not take any withdrawals or add any additional premium payments, and no automatic step-ups occurred, but that after six years Your Policy Value has declined to $90,000 solely because of negative investment performance. You could receive up to $6,000 each rider year for the rest of Your life based on an assumed withdrawal percentage of 6.0% for the single life option multiplied by an assumed withdrawal base of $100,000 and assuming that:

• You take Your first withdrawal when You are age 72;

• You do not withdraw more than the rider withdrawal amount in any one year; and;

• there are no future automatic step-ups.

Example continued. Assume the same facts as above, but You withdraw $10,000 when You are 72 years old. That excess withdrawal decreases Your future rider withdrawal amount to $5,714.

Because the withdrawal ($10,000) is in excess of the rider withdrawal amount ($6,000) it impacts the withdrawal base on a greater than dollar-for-dollar basis.

Adjusted Withdrawal = Excess Withdrawal Amount * Withdrawal Base prior to the withdrawal / Policy Value after the Rider Withdrawal Amount but prior to the Excess Withdrawal Amount.

Excess withdrawal amount $10,000 - $6,000 = $4,000

Withdrawal base = $100,000

Policy Value after the rider withdrawal amount but prior to the excess withdrawal amount $90,000 - $6,000 = $84,000

Adjusted withdrawal = $4,000 * $100,000 / $84,000 = $4,761.90

New withdrawal base $100,000 - $4,761.90 = $95,238.10

New rider withdrawal amount $95,238.10 * 6% = $5,714.29

See the “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Transamerica Principal Optimizer^SM – Required Allocations

If You elect this rider, a certain percentage of Your Policy Value on the rider date must be allocated to the Stable Account, the select investment options and the flexible investment options, in accordance with the percentages specified in the Required Allocations for Premium Payments table contained in the Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on

52

the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC). After the rider date, the allocation of all subsequent premium payments must also comply with the required allocations for premium payments table contained in the Rate Sheet Prospectus Supplement.

In addition, if You elect this rider, any transfers to and from the select investment options and the flexible investment options must comply with the required allocation percentages for rebalancing specified in the Rate Sheet Prospectus Supplement in effect at the time You elect this rider. Any transfers to and from the select investment options and flexible investment options will be validated using the prior day’s Policy Values to ensure compliance with the required allocation percentages for rebalancing at the time of the request. Transfer requests that do not comply with the required allocation percentages for rebalancing will be deemed not in good order. Changes in Policy Values due to market movements on other dates will not be treated as a violation of the required allocations.

Transfers to and from the Stable Account (described below) are not permitted. Withdrawals from the Stable Account are not permitted until all other investment options are depleted of value. Withdrawals from the flexible investment options and select investment options will be deducted on a pro-rata basis. If You do not wish to maintain the applicable required allocation percentages, the rider must be terminated, subject to the rider termination restrictions and requirements, prior to making any transfer. The rider will terminate on the date we receive Written Notice from You requesting termination if such notice is received by us during the 30 days following the fifth rider anniversary or any fifth rider anniversary thereafter.

Enrollment in dollar cost averaging is not available while this rider is in effect.

The Stable Account. The Stable Account is a Fixed Account option under Your policy. Premium payments allocated and amounts transferred to the Stable Account become part of our general account. Interests in the general account have not been registered under the 1933 Act, nor is the general account registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are generally subject to the provisions of the 1933 or 1940 Acts. Disclosures relating to interests in the general account are, however, subject to certain generally applicable provisions of the federal securities laws relating to the accuracy of statements made in a registration statement.

Allocations applied to the Stable Account will be credited interest based on a fixed rate. The interest rates will be applied in increments of at least one year measured from each premium payment date and will automatically renew and remain in the Stable Account. The interest credited to the Stable Account will not be less than the guaranteed minimum effective annual interest rate shown on Your rider pages (the “guaranteed minimum”). We determine credited rates, which are guaranteed for at least one year, in our sole discretion. You bear the risk that we will not credit interest greater than the guaranteed minimum.

Withdrawals, surrenders, or transfers (upon termination) from the Stable Account will not be subject to an Excess Interest Adjustment.

Upon termination of the rider, all amounts in the Stable Account will be transferred to the money market Subaccount available under Your policy and no additional premium payments will be allowed into the Stable Account. Owners are permitted to provide instructions as to the allocation of the Stable Account proceeds contained in the money market Subaccount to one or more Subaccounts, but such instructions will not be effective prior to the Business Day after rider termination.

We guarantee that upon full surrender Your Cash Value attributable to the Fixed Account will not be less than the amount required by the applicable state nonforfeiture law at the time the policy is issued.

Select and Flexible Investment Options. As described above, if You elect this rider, You must allocate a certain percentage of Your premium payments and Policy Value to the available flexible investment options and select investment options. A complete listing of investment options designated as flexible investment options and select investment options appears in the “Appendix – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Investment Options”. You will be notified if there are changes made to the investment options within the designated group. Requiring that You allocate a certain percentage of Your premium payments and Policy Value to the designated investment options, some of which invest in underlying funds that 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.

Rebalancing. While this rider is effective, quarterly rebalancing is required and will take place at the end of each rider quarter on the same date Your rider fee is deducted. If the day rebalancing takes place is not a Business Day, the value of the Accumulation Units redeemed or purchased due to rebalancing will be determined as of the next Business Day. We will automatically transfer amounts among Subaccounts according to the most recent rebalancing allocation instructions on file that comply with the required allocations for rebalancing. On the rider date, Your rebalancing allocation instructions will be established using a ratio of Your current investment allocation instructions for new premium payments.

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You will be notified in writing that the required rebalance has been set up, and what the calculated rebalance allocation percentages are prior to the first quarter rebalancing. You may request changes to Your rebalancing allocation instructions before the prior instructions are implemented if we receive notice of Your request in good order prior to the close of the New York Stock Exchange on the day the rebalance is processed. Your rebalancing allocation instructions will be established using a ratio of Your current investment allocation instruction for new premium payments. You may request changes to Your rebalancing allocation instructions while this rider remains effective as long as they comply with the required allocations for rebalancing. Rebalancing will not cease upon the request of any transfer.

See “Appendix – Guaranteed Lifetime Withdrawal Benefit - Transamerica Income Edge^SM 1.2 and Transamerica Principal Optimizer^SM - Rebalancing Examples” which illustrates the initial calculation of rebalancing allocation percentages as well as the rebalancing process.

Please note:

• If You do not wish to maintain the required allocations, the rider must be terminated, subject to the rider termination restrictions and requirements, prior to making any transfer. (See, Transamerica Principal Optimizer^SM Rider – Termination, below.)

• We can change the list of designated flexible and select investment groups at any time. Any changes to investment allocation requirements will not affect policy Owners with an active rider.

• If an underlying fund portfolio informs us that a portfolio will be liquidated or reorganized, we can eliminate the corresponding select or flexible investment option. If this occurs, You will be required to reallocate values in the affected investment option to other flexible and select investment options in order to meet the allocation requirements. We will provide notice to You if a select or flexible investment option will be eliminated and reallocation is required. If You do not provide us with new instructions in the time specified in our notice, we will move Your money in the affected option to the money market Subaccount to the extent permitted by applicable law.

Transamerica Principal Optimizer^SM - Joint Life Option

If You elect the Transamerica Principal Optimizer^SM rider, then You can also elect to postpone termination of the rider until the later of the Annuitant or Annuitant’s spouse’s death (only if the Annuitant’s spouse is eligible to and elects to continue the policy, see TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements). If You elect the Joint Life option, then the withdrawal percentage used to calculate the rider withdrawal amount may be lower than under the single life option. The withdrawal percentage that is used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. This option may not be permitted in the case of certain non-natural Owners. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

Please note: If You elect this option:

• The withdrawal percentage for each “age at the time of the first withdrawal” may be lower if You elect the joint life option.

• The rider fee may be greater if You elect the joint life option.

• The Annuitant's spouse (or in certain instances a non-natural entity acting for the benefit of the Annuitant's spouse) must be either a joint Owner along with the Annuitant or the sole primary beneficiary (and there is no joint Owner). (Please see Spousal Continuation section for more detail regarding Annuitant's spouse).

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

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

• The rider withdrawal percentage is based on the age of the younger of the Annuitant and Annuitant’s spouse.

• The rider’s issue ages may vary if You elect this option.

Transamerica Principal Optimizer^SM Fees

The rider fee is deducted at the end of each successive rider quarter, on the same day of the month as the rider date. If a day does not exist in a given month, the first day of the following month will be used. If a rider fee is deducted from a Subaccount on a day which is not a Business Day, the value of Accumulation Units redeemed will be determined as of the next Business Day. The rider fee is calculated and stored at issue and at each subsequent rider quarter for the upcoming quarter. The rider fee will be adjusted for additional premium payments, excess withdrawals and optional resets of the Guaranteed Future Value made during the rider quarter. The fee may also be adjusted for non-excess withdrawals made during the rider quarter. It will be deducted automatically from the flexible investment options and the select investment options on a pro rata basis at the end of each rider quarter. After those investment options are depleted of value, the rider fee will be deducted from the Stable Account.

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The rider fee percentage may change after the first rider anniversary due to an automatic step-up or election of the optional reset. Your rider fee may increase (or decrease) at the time of any automatic step-up or optional reset. See Automatic Step-Up or Optional Reset sections. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentage will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

In order for the fee disclosed on the applicable Rate Sheet Prospectus Supplement to apply: (1) Your application must be signed within the stated time period set forth in the applicable Rate Sheet Prospectus Supplement and (2) Your application must be received and Your policy must be funded within the stated time periods set forth in the applicable Rate Sheet Prospectus Supplement. Rider fees reflected in a Rate Sheet Prospectus Supplement with an effective period that does not include the date You signed Your application will not apply to Your policy. You should not purchase this rider without first obtaining the applicable Rate Sheet Prospectus Supplement. You can contact us at www.transamerica.com to receive a Rate Sheet Prospectus Supplement applicable to You.

On an annual basis, in general terms, the rider fee is the rider fee percentage multiplied by the rider fee basis. The rider fee basis is the greater of the withdrawal base and the guaranteed future value. Specifically, the quarterly fee is calculated by multiplying (A) by (B) by (C), where:

(A)	is the rider fee basis;
(B)	is the rider fee percentage; and
(C)	is the number of days in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: Rider Fee Basis = Maximum of Withdrawal Base of $100,000 and Guaranteed Future Value of $105,000; Rider Fee percentage = 1.40%; and 91 total days in the rider quarter.

Example 1: Calculation at rider issue for first quarter rider fee. The rider fee is:

= 105,000*0.0140*(91/365)

= 1,470*(91/365)

= $366.49

A portion of the rider fee will be assessed upon full surrender of the policy or other termination of the rider. The quarterly fee will be adjusted based on the number of days remaining until the end of the next rider quarter and ending on the date of termination.

On each rider anniversary, the rider fee percentage may increase (or decrease) at the time of an automatic step-up or at election of an optional reset. See Automatic Step-Up section and Optional Reset section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC). Please contact Your financial intermediary or call our Administrative Office to determine whether the Rate Sheet Prospectus Supplement has been amended.

Each time an optional reset results in a rider fee percentage increase, You will have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentages and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that You do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive Your rejection, in good order, at our Administrative Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Each time an automatic step-up results in a rider fee percentage increase beyond the rider fee percentage immediately prior to the rider anniversary, You will have the option to revoke the optional reset and reinstate the guaranteed future value date, guaranteed future value, rider fee percentages and protection level percentages to their respective values and dates that were in effect immediately prior to the election of the optional reset, provided You do so within 30 days following the date on which the optional reset was effective. We must receive Your revocation, in a manner acceptable to us, within the 30 day period following the date on which the optional reset was effective.

Please note regarding the rider fee:

• Because the rider fee is a percentage of the rider fee basis and the rider fee basis is the greater of the withdrawal base and the guaranteed future value, the rider fee could be a much higher percentage of Your Policy Value, particularly in the event that Your Policy Value decreases significantly.

• Because the rider fee is a percentage of the rider fee basis, and the rider fee basis is the greater of the withdrawal basis and the guaranteed future value, the amount of the rider fee we deduct will increase if the withdrawal base or guaranteed future value increases (although the percentage(s) may remain the same).

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Rider Fee Adjustment for Premium Payments, Excess Withdrawals and Optional Resets. A rider fee adjustment will be calculated for subsequent premium payments and excess withdrawals and optional resets of the guaranteed future value made during the rider quarter, because these events will change the withdrawal base and guaranteed future value. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected. The fee may be adjusted for non-excess withdrawals made during the rider quarter.

The rider fee adjustment is calculated by multiplying (A) by (B) by (C) where:

(A)	is the rider fee basis change (i.e. rider fee basis after the transaction minus the rider fee basis before the transaction);
(B)	is the rider fee percentage; and
(C)	is the number of days remaining in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: All initial values as in Example 1; Subsequent Premium = $10,000; and 20 remaining days in the rider quarter.

Example 2: Calculation for first quarter rider fee adjustment for a subsequent premium. The fee adjustment is:

= 10,000*0.0140*(20/365)

= 140*(20/365)

= $7.67

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

= 366.49 + 7.627

= $374.16

The following two examples use assumed fees and values. The assumed rider year is not a leap year.

Example 3: Calculation for second quarter fee at beginning of second rider quarter assuming rider fee basis of $115,000 (maximum of Withdrawal Base of $110,000 and Guaranteed Future Value of $115,000) and a fee percentage of 1.40%.

= 110,000*0.0140*(91/365)

= 1,610*(91/365)

= $401.40

Example 4: Calculation for second quarter fee and an excess withdrawal that results in a pro-rata reduction in the withdrawal base and guaranteed future value. Assuming beginning values as in example 3, plus adjustment for gross withdrawal of $10,000 taken with 40 days remaining in the second rider quarter. Assumes withdrawal percentage of 5% of Policy Value of $93,500 prior to the transaction and change in rider fee basis as follows:

Withdrawal Base Adjustment

Rider Withdrawal Amount (RWA) = Withdrawal Base * Withdrawal Percentage = $110,000 * .05 = $5,500
Excess Withdrawal = Difference between assumed withdrawal amount and RWA = $10,000 - $5,500 = $4,500
Withdrawal Base Adjustment = Maximum of Excess Withdrawal and Pro-Rata Withdrawal Amount (Excess Withdrawal * Withdrawal Base prior to withdrawal/Policy Value after RWA has been withdrawn but before excess withdrawal) = Maximum of $4,500 * $110,000/ ($93,500 - $5,500)) = Maximum of $4,500 and $5,625 = $5,625
The new withdrawal base = $110,000 - $5,625 = $104,375

Guaranteed Future Value Adjustment

Guaranteed Future Value Adjustment = Maximum of Gross Withdrawal amount and Pro-Rata Withdrawal Amount (Gross Withdrawal * Guaranteed Future Value prior to withdrawal/Policy Value prior to withdrawal) = Maximum of $10,000 * $115,000/ $93,500) = Maximum of $10,000 and $12,299.47 = $12,299.47
The new guaranteed future value = $115,000 - $12,299.47 = $102,700.53

The Rider Fee Basis after the transaction = Maximum of the Withdrawal Base after the transaction ($104,375) or the Guaranteed Future Value after the transaction ($102,700.53) = $104,375, minus maximum of the Withdrawal Base before the transaction ($110,000) or the Guaranteed Future Value before the transaction ($115,000 ($104,375 - $115,000) = $-10,625.

Fee adjustment as follows:

= $-10,625 * 0.0140 * (40/365)

= $-148.75 * (40/365)

= $-16.30

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

= $401.40 - $16.30

= $385.10

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Transamerica Principal Optimizer^SM Issue Requirements

We will not issue the Transamerica Principal Optimizer^SM rider if:

• the Annuitant is age 86 or older (lower if required by state law); or

• the Annuitant is not an Owner (except in the case of non-natural Owners); or

• there are more than two Owners.

Furthermore, if the joint life option is elected, we will not issue the Transamerica Principal Optimizer^SM rider if:

• the Annuitant’s spouse is 86 or older (lower if required by state law); or

• the Annuitant’s spouse is not a joint Owner along with the Annuitant; or

• the Annuitant’s spouse is not the sole primary beneficiary (and there is no joint Owner).

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

Termination

The Transamerica Principal Optimizer^SM rider will terminate upon the earliest of the following:

• the date we receive Written Notice from You requesting termination of the rider if such notice is received before midnight of the 30^th calendar day after You receive the rider;

• the date we receive Written Notice from You in good order requesting termination of the Transamerica Principal Optimizer^SM rider if such notice is received by us during the 30 days following the fifth rider anniversary and every fifth rider anniversary thereafter;

• the date of Annuitization (however, if You have reached Your maximum Annuity Commencement Date You may choose an Annuitization option which guarantees You lifetime payments in an amount equal to Your rider withdrawal amount);

• on or after the Policy Value reaching zero, the date of the Annuitant’s death (or if the joint life option is elected, the later of the Annuitant’s or Annuitant’s spouse’s death);

• the date the policy to which this rider is attached changes ownership or assignment which violates the Owner and Annuitant relationship requirements contained in the rider;

• the date an excess withdrawal reduces Your Policy Value to zero;

• prior to the Policy Value reaching zero, the date on which we receive in good order, required information to process a death claim for the Annuitant (or if the joint life option is elected, the later of the Annuitant’s or Annuitant’s spouse’s death); or

• termination of Your policy.

Please note: This rider terminates upon Annuitization and there is a maximum Annuity Commencement Date at which time Your policy will be Annuitized according to its terms. However, if You have reached Your maximum Annuity Commencement Date, we will allow You to Annuitize Your policy and elect to receive lifetime annuity payments which are at least equal to Your rider withdrawal amount. Please contact us for more information concerning Your options.

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Retirement Income Max^® 1.2 Rider

If You elect the Retirement Income Max^® 1.2 rider identified below, which provides certain guaranteed benefits, the Company requires Your Policy Value to be allocated into designated investment options. One or more of the designated investment options may include a volatility control strategy. Volatility control strategies, in periods of high market volatility, could limit Your participation in market gains; this may conflict with Your investment objectives by limiting Your ability to maximize potential growth of Your Policy Value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns. Volatility control (and similar terms) can encompass a variety of investment strategies of different types and degrees; therefore, You should read the applicable annuity and underlying fund portfolio prospectuses carefully to understand how these investment strategies may affect Your Policy Value and rider benefits. The Company’s requirement to invest in accordance with designated investment options, which may include volatility control, may reduce our costs and risks associated with this rider. You pay an additional fee for the rider benefits which, in part, pay for protecting the rider benefit base from investment losses. Since the rider benefit base does not decrease as a result of investment losses, volatility control strategies might not provide meaningful additional benefit to You. You should carefully evaluate with Your financial professional whether to invest in funds with volatility control strategies, taking into consideration the potential positive or negative impact that such strategy may have on Your investment objectives, Your Policy Value and the benefits under the Retirement Income Max^® 1.2 rider. If You determine that funds with volatility control strategies are not consistent with Your investment objectives, other designated investment options are available under the Retirement Income Max^® 1.2 rider that do not invest in funds that utilize volatility control strategies.

Retirement Income Max^® 1.2 - Summary

You may elect to purchase the optional Retirement Income Max^® 1.2 rider, which provides You with: (1) a Guaranteed Lifetime Withdrawal Benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that You allocate 100% of Your Policy Value in certain designated investment options which are designed to help manage our risk and support the guarantees under the rider. If You elect the Retirement Income Max^® 1.2 rider You cannot elect the Transamerica Principal Optimizer^SM, Retirement Income Choice^® 1.7 or Transamerica Income Edge^SM 1.2 riders. The tax rules for qualified policies may limit the value of this rider. Please Note: There are investment restrictions associated with this benefit that can limit participation in market gains. Withdrawals taken in excess of the prescribed limits (rider withdrawal amount) will reduce the amount of the benefit and may eliminate the benefit altogether, if the amount of the excess withdrawal exceeds the Policy Value at the time of the withdrawal. The fee for the rider will not be reduced for any investment losses to Policy Value and, in fact, may be increased if there are withdrawals taken in excess of the rider withdrawal amount. Withdrawals taken while the contract value is greater than zero are withdrawals of the Owner’s own money (not the Company’s). Please consult a qualified financial professional before electing the Retirement Income Max^® 1.2 rider for a qualified policy.

Please Note: This rider may not be issued or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The benefits under the Transamerica Retirement Income Max^® 1.2 Rider are based on our claims-paying ability.

The Retirement Income Max^® 1.2 rider may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

Under this benefit, You can receive up to the rider withdrawal amount each rider year (first as withdrawals from Your Policy Value and, if necessary because Your Policy Value goes to zero by other than an excess withdrawal, as payments from us for life), starting with the rider year immediately following the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) attaining the minimum benefit age and lasting until the Annuitant’s (or surviving spouse's if the joint life option is elected) death, unless Your withdrawal base is reduced to zero because of an “excess withdrawal”; see Withdrawal Base Adjustments, below. A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date. The withdrawal percentage used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

58

Of course, You can always withdraw an amount up to Your Cash Value pursuant to Your rights under the policy at Your discretion. See the “Appendix - Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Please note:

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

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

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

• Because the Guaranteed Lifetime Withdrawal Benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for You if You do not foresee a need for liquidity and Your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All Policy Value must be allocated to a limited number of specified investment options. You should consult with Your registered representative to assist You in determining whether these certain investment options are suited for Your financial needs and risk tolerance. The investment options are categorized within designated investment groups, each of which may have a different fee and charge.

• Any withdrawal in any rider year that is in excess of the rider withdrawal amount is an excess withdrawal. The rider year begins on the rider date and thereafter on each rider anniversary.

• An excess withdrawal will impact the withdrawal base components on a greater than dollar-for-dollar basis when the Policy Value, after the rider withdrawal amount is withdrawn, is less than the withdrawal base components, and may cause You to lose the benefit of this rider.

• Upon receiving due proof of death of the Annuitant (or the death of the surviving spouse if the joint option is elected and the surviving spouse was eligible to and elected to continue the policy), the Retirement Income Max^® 1.2 rider terminates and all benefits thereunder cease.

• You may terminate the rider by providing Written Notice to use requesting termination during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter. See Termination section below.

• If Your Policy Value reaches zero, the Company may require satisfactory evidence a person is alive if a payment is based on that person being alive. For example, a notarized letter may be provided as satisfactory evidence a person is living.

• The tax rules for qualified policies may limit the value of this rider. Please consult a financial professional before electing the Retirement income Max^® 1.2 rider for a qualified policy.

• Withdrawals up to the rider withdrawal amount are not subject to an Excess Interest Adjustment.

Like all withdrawals, withdrawals up to the rider withdrawal amount, while this rider is in effect also:

• reduce Your Policy Value;

• reduce Your base policy death benefit and other benefits;

• may be subject to surrender charges if the withdrawal is greater than the Surrender Charge Free Amount;

• may be subject to income taxes and federal tax penalties (see TAX INFORMATION); and

• may be limited or restricted under certain qualified policies. (See TAX INFORMATION – Qualified Policies and TAX INFORMATION – Optional Living Benefits).

Retirement Income Max^® 1.2 - Rider Withdrawal Amount

You can withdraw up to the rider withdrawal amount in any rider year (after attainment of minimum benefit age) from Your Policy Value without causing an excess withdrawal. See Withdrawal Base Adjustments below.

The rider withdrawal amount is zero if the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has not yet attained the minimum benefit age on the rider date and remains zero until the first day of the rider year after the Annuitant’s (or the Annuitant's spouse's if younger and the joint life option is elected) has attained the minimum benefit age. On the first day of

59

the rider year after the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has attained at least the minimum benefit age on the rider date, the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage. See applicable Rate Sheet Prospectus Supplement for additional information. Surrender charges may apply if Your rider withdrawal amount exceeds Your Surrender Charge Free Amount.

For qualified policies: If the plan participant (generally the Annuitant) attains age 72 (or age 70½ if the Annuitant attained 70½ before 1/1/2020), the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

• the rider withdrawal amount described above; or

• an amount equal to any minimum required distribution amount, if any. For riders added on the Policy Date, the minimum required distribution during the first rider year is based on the initial premium (initial premium could include premium from transfers received after the policy effective date, but must be deemed initial premium). For riders added after the Policy Date, if the policy to which the rider is attached was in force on December 31^st of the previous year, the minimum required distribution for the first rider year is calculated using the year-end Policy Value plus any actuarial present value from the previous year. For riders added after the Policy Date and the policy to which the rider is attached was not in force on December 31^st of the previous year, the minimum required distribution for the first rider year is based on the Policy Value on the rider date. The minimum required distribution is calculated based on the rules established by the IRS. The minimum required distribution may only be used if all of the following are true:

a.  the policy to which this rider is attached is a tax-qualified policy for which the IRS minimum required distributions are required,

b.  the minimum required distributions do not start prior to the Annuitant’s attained age of 72 (or 70 ½ if the Annuitant attained 70 ½ before 1/1/2020),

c.	the minimum required distributions are based on either the Uniform Lifetime table or the Joint Life and Last Survivor Expectancy table,
d.	the minimum required distributions are based on age of the living Annuitant. The minimum required distributions cannot be based on the age of someone who is deceased,
e.	the minimum required distributions are based only on the policy to which this rider is attached,
f.	the minimum required distributions are only for the current rider year. Amounts carried over from past rider years are not considered, and
g.	if an excess withdrawal is taken in the previous rider year, the minimum required distribution will not be used in calculating the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

If any of the above are not true, then the minimum required distribution is equal to zero and it is not available as a rider withdrawal amount.

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

If Your Policy Value reaches zero:

• by means other than an excess withdrawal, then You cannot make premium payments and all other policy features, benefits, and guarantees (except those provided by this rider) are terminated. If Your Policy Value reaches zero by other than an excess withdrawal, and the rider remains in force, we will, unless instructed otherwise, make payments using the current payment instructions on file with us that are equal to the rider withdrawal amount divided by the frequency of payments. If the Annuitant (or younger of Annuitant or Annuitant’s spouse if the joint option is elected) has attained the minimum benefit age and a systematic payment option is not active at the time the Policy Value reaches zero, a payout will be established. Unless instructed otherwise, the default frequency will be monthly, unless the amount does not meet the minimum systematic payout requirements in Your policy. If that occurs, we reserve the right to change the frequency and amount in order to meet the minimum systematic payout requirements. If the minimum benefit age has not been attained, payments will begin on the rider anniversary following the attainment of the minimum benefit age.

• due to an excess withdrawal, then this rider terminates (as does the policy).

Please note:

• If the rider is added prior to the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) attaining the minimum benefit age, the rider withdrawal amount will be zero until the beginning of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age, however, You will still be charged a rider fee upon electing the rider.

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• The rider year begins on the rider date and thereafter on each rider anniversary.

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

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

• All Policy Value must be allocated to a limited number of specified investment options. (See Designated Investment Options below.)

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

Rate Sheet Prospectus Supplement

The fee, growth and withdrawal percentages as well as the valuation frequency and minimum benefit age are disclosed in Rate Sheet Prospectus Supplements. We periodically issue new Rate Sheet Prospectus Supplements that may reflect different fee, growth and withdrawal percentages, as well as valuation frequency and minimum benefit age than the previous Rate Sheet Prospectus Supplements. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC). Additionally, all superseded Rate Sheet Supplement fee, growth rate and withdrawal rate percentages, as well as valuation frequency and minimum benefit ages can be found in an Appendix to the SAI. In order to receive the applicable withdrawal, growth and fee percentages, minimum benefit age and valuation frequency: (1) Your application must be signed and received within the stated time period set forth in the applicable Rate Sheet Prospectus Supplement and (2) Your application must be received and Your policy must be funded within the stated time periods set forth in the applicable Rate Sheet Prospectus Supplement. Withdrawal, growth and fee percentages as well as valuation frequency and minimum benefit age reflected in a Rate Sheet Prospectus Supplement with an effective period that does not include the date You signed Your application will not apply to Your policy. You should not purchase this rider without first obtaining the applicable Rate Sheet Prospectus Supplement. You can contact us at www.transamerica.com to receive a Rate Sheet Prospectus Supplement applicable to You.

Retirement Income Max^® 1.2 - Withdrawal Percentage

We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the Annuitant’s age (or the Annuitant's spouse's age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the Annuitant’s (or the Annuitant's spouse's if younger and the joint life option is elected) attainment of the minimum benefit age.

The withdrawal percentage is disclosed in the Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

Please Note: Once established, the withdrawal percentage will not change except in certain instances involving automatic step-ups. Withdrawal percentages will change when an automatic step-up occurs and You have crossed into another age band prior to the automatic step-up, seeAutomatic Step-Up section in the prospectus.

Retirement Income Max^® 1.2 - Withdrawal Base

We use the withdrawal base to calculate the rider withdrawal amount and rider fee. The withdrawal base on the rider date is the Policy Value. Thereafter, the withdrawal base is equal to the greater of the step-up component and the growth component.

Step-Up Component

The step-up component is used to calculate the withdrawal base. The step-up component is equal to the withdrawal base on the rider date. During any rider year, the step-up component is increased by additional premium payments, and is reduced for excess withdrawals.

On each rider anniversary, the step-up component will equal the greatest of:

1. the current step-up component;

2. the Policy Value on the rider anniversary; and

3. the highest Policy Value in the previous rider year based on the valuation frequency. (see Automatic Step-Up below).

Item 3 above will be zero if there have been any excess withdrawals in the current rider year.

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Growth Component

The growth component is used to calculate the withdrawal base. The growth component is equal to the withdrawal base on the rider date. During any rider year, the growth component is increased by additional premium payments, and is reduced for excess withdrawals.

On each rider anniversary, the growth component will equal A plus (B multiplied by C), where:

(A)	Is the current growth component
(B)	Is the growth basis; and
(C)	Is the growth rate percentage.

Item C above will be zero if there have been any withdrawals in the current rider year or after the 10^th rider anniversary.

Automatic Growth Component Stacking

On each rider anniversary after the rider date, the growth component will be set equal to the withdrawal base if the withdrawal base is greater than the growth component.

Growth Basis

The growth basis is used to calculate the growth component. It is equal to the initial growth component on the rider date. During any rider year, the growth basis is increased by additional premium payments, and is reduced for excess withdrawals.

On each rider anniversary, the growth basis will be set equal to the current growth basis, multiplied by (1+ the growth rate percentage).

The growth rate percentage will be zero if there have been any withdrawals in the current rider year or after the 10^th rider anniversary.

Automatic Growth Basis Reset

On each rider anniversary after the rider date, the growth basis will be set equal to the withdrawal base if the withdrawal base is greater than the growth basis.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount and rider fee.

• Your withdrawal base is not a Cash Value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any Subaccount, and it is not a guarantee of Policy Value.

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

• Because a withdrawal will eliminate the potential application of the growth credit for that rider year, You should consider Your need or possible need to take withdrawals within the first 10 rider years in deciding whether to purchase the rider.

See “Appendix - Hypothetical Example of the Withdrawal Base Calculation - Retirement Income Max^® 1.2 Rider” which illustrates the hypothetical example of the withdrawal base calculation.

Retirement Income Max^® 1.2 - Automatic Step-Up

On each rider anniversary the rider receives an automatic step-up if the withdrawal base is set equal to 2 or 3 from the Retirement Income Max^® 1.2 – Withdrawal Base - Step-Up Component section above. If neither value is greater than the current withdrawal base no automatic step-up will occur. If the withdrawal percentage has been established due to a previous withdrawal, the withdrawal percentage (as indicated in the Rate Sheet Prospectus Supplement) will increase if You have crossed into another age band prior to the automatic step-up. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC). Please note, the increase is part of the automatic step-up and if no automatic step-up occurs then there will be no withdrawal percentage increase.

On each rider anniversary the rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider.

Automatic Step-Up Opt Out. Each time an automatic step-up results in a rider fee percentage increase, You have the option to reject the automatic step-up and reinstate the withdrawal base, step-up component, withdrawal percentage, and rider fee percentage to their respective amounts immediately before the automatic step-up, provided that You do so within 30 days after the rider anniversary on which the automatic step-up occurred. Changes as a result of the automatic step-up feature will be reversed. We must receive Your

62

rejection (each time You elect to opt out), in good order, at our Administrative Office within the same 30 day period after the rider anniversary on which the automatic step-up occurred. You are not subject to fee increases for any Automatic Step-Up that You have opted out of. Opting out of one step-up does not operate as an opt-out of any future step-ups.

Retirement Income Max^® 1.2 - Withdrawal Base Component Adjustments

Cumulative gross withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base components (growth component, growth basis or step-up component) of the withdrawal base. Any amount of gross withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base components, however, by the greater of the dollar amount of the excess withdrawal (if the Policy Value is greater than the withdrawal base components) or a pro rata amount (in proportion to the reduction in the Policy Value when the Policy Value is less than the withdrawal base components), possibly to zero. If an excess withdrawal reduces the Policy Value to zero, this rider will terminate. Withdrawal base component adjustments occur immediately following excess withdrawals. See “Appendix - Hypothetical Adjusted Withdrawals - Retirement Income Max^® 1.2 Rider and Retirement Income Choice^® 1.7 Riders ” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base components by a pro rata amount. See “Appendix - Hypothetical Adjusted Withdrawals - Retirement Income Max^® 1.2 Rider and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail. The effect of an excess withdrawal is magnified if the policy value is less than the withdrawal base component.

Please Note: You retain all responsibility for monitoring excess withdrawals. If You take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because Your regular or scheduled withdrawals may thereafter all be excess withdrawals that reduce or eliminate Your benefit on an accelerated basis.

Example. Assume You are the Owner and Annuitant and You make a single premium payment of $100,000 when You are 66 years old. Further assume that You do not make any withdrawals or additional premium payments, no automatic step-ups occurred, but that after five years Your Policy Value has declined to $90,000 solely because of negative investment performance and rider fees. With an assumed annual growth rate percentage of 7.2%, after 5 years the withdrawal base is equal to $141,570.88. You could receive up to $7,078.54 which is the assumed withdrawal percentage of 5.0% for the single life option multiplied by the withdrawal base of $141,570.88, each rider year for the rest of Your life (assuming that You take Your first withdrawal when You are age 71, that You do not withdraw more than the rider withdrawal amount in any one year and there are no future automatic step-ups.)

Example continued. Assume the same facts as above, but You withdraw $10,000 when You are 71 years old. That excess withdrawal decreases Your future rider withdrawal amount to $6,829.16.

See the “Appendix - Hypothetical Adjusted Withdrawals Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Retirement Income Max^® 1.2 - Designated Investment Options

If You elect this rider, You must designate 100% of Your Policy Value into one or more of the designated investment options approved for the Retirement Income Max^® 1.2 rider. See “Appendix - Designated Investment Options” for a complete listing of available investment 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.

Transfers between the designated investment options are allowed as permitted under the policy; however, You cannot transfer any amount (or allocate premium payments) to any non-designated investment option. Within 30 days following the fifth rider anniversary (and each successive fifth rider anniversary), You can terminate this rider. Starting the next Business Day after You terminate Your rider, You may transfer (or allocate premium payments) to a non-designated investment option. Terminating the rider will result in losing all Your benefits under the rider.

Please note:

• The earliest You can transfer (or allocate premium payments) to a non-designated investment option is the first Business Day after the fifth rider anniversary. You will be required to terminate the rider first. If You terminate the rider You will lose all of its benefits.

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

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Retirement Income Max^® 1.2 - Joint Life Option

If You elect this rider, then You can also elect to postpone termination of the rider until the later of the Annuitant or Annuitant’s spouse’s death (only if the Annuitant’s spouse is eligible to and elects to continue the policy, see TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements). If You elect the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) may be lower. The withdrawal percentage that is used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. This option may not be permitted in the case of certain non-natural Owners. All Rate Sheet Prospectus Supplements are available on the EDGAR system at (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

Please note:

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

• The rider fee may be greater if this option is elected.

• The Annuitant's spouse (or in certain instances a non-natural entity acting for the benefit of the Annuitant's spouse) must be either a joint Owner along with the Annuitant or the sole primary beneficiary (and there is no joint Owner), if You elect this option. (Please see Spousal Continuation section for more detail regarding Annuitant's spouse).

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

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

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

• The rider's issue ages may vary if You elect this option.

Retirement Income Max^® 1.2 Fees

The rider fee is deducted at the end of each successive rider quarter, on the same day of the month as the rider date. If a day does not exist in a given month, the first day of the following month will be used. If a rider fee is deducted from a Subaccount on a day which is not a Business Day, the value of Accumulation Units redeemed will be determined as of the next Business Day. The rider fee is calculated and stored at issue and at each subsequent rider quarter for the upcoming quarter. The rider fee will be adjusted for additional premium payments and excess withdrawals during the rider quarter. It will be deducted automatically from Your Policy Value at the end of each rider quarter.

The rider fee percentage may change after the first rider year due to an automatic step-up. Your rider fee may increase (or decrease) at the time of any automatic step-up. See Automatic Step-Up section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentage will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

In order for the fee disclosed on the applicable Rate Sheet Prospectus Supplement to apply: (1) Your application must be signed within the stated time period set forth in the applicable Rate Sheet Prospectus Supplement and (2) Your application must be received and Your policy must be funded within the stated time periods set forth in the applicable Rate Sheet Prospectus Supplement. Rider fees reflected in a Rate Sheet Prospectus Supplement with an effective period that does not include the date You signed Your application will not apply to Your policy. You should not purchase this rider without first obtaining the applicable Rate Sheet Prospectus Supplement. You can contact us at www.transamerica.com to receive a Rate Sheet Prospectus Supplement applicable to You.

On an annual basis, in general terms, the rider fee is the rider fee percentage multiplied by the withdrawal base. Specifically, the quarterly fee is calculated by multiplying (A) by (B) by (C), where:

(A)	is the withdrawal base;
(B)	is the rider fee percentage; and
(C)	is the number of days in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: Initial Premium = $100,000; Withdrawal Base = $100,000; Rider Fee percentage = 1.25%; and 91 total days in the rider quarter.

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Example 1: Calculation at rider issue for first quarter rider fee. The rider fee is:

= 100,000*0.0125*(91/365)

= 1,250*(91/365)

= $311.64

A portion of the rider fee will also be assessed upon full surrender of the policy or other termination of the rider. The quarterly fee will be adjusted based on the number of days remaining until the end of the most recent rider quarter and ending on the date of termination.

On each rider anniversary the rider fee percentage may increase (or decrease) at the time of an automatic step-up. See Automatic Step-Up section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentage will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC). Please contact Your financial intermediary or call our Administrative Office to determine whether the Rate Sheet Prospectus Supplement has been amended. Each time an automatic step-up results in a rider fee percentage increase, You will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that You do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive Your rejection, in good order, at our Administrative Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Please note regarding the rider fee:

• Because the rider fee is a percentage of the withdrawal base, it could be a much higher percentage of Your Policy Value, particularly in the event that Your Policy Value decreases significantly.

• Because the rider fee is a percentage of the withdrawal base, the amount of the rider fee we deduct will increase if the withdrawal base increases (although the percentage may remain the same).

Rider Fee Adjustment for Premium Payments and Excess Withdrawals. A rider fee adjustment will be calculated for subsequent premium payments and excess withdrawals because these events will change the withdrawal base. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

The rider fee adjustment is calculated by multiplying (A) by (B) by (C), where:

(A)	is the withdrawal base change (i.e. withdrawal base after the transaction minus the withdrawal base before the transaction;
(B)	is the rider fee percentage; and
(C)	is the number of days remaining in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: All initial values as in Example 1; Subsequent Premium = $10,000; and 30 remaining days in the rider quarter.

Example 2: Calculation for first quarter rider fee adjustment for a subsequent premium. The fee adjustment is:

= 10,000*0.0125*(30/365)

= 125*(30/365)

= $10.27

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

= 311.64 + 10.27

= $321.91

Retirement Income Max^® 1.2 Issue Requirements

We will not issue the Retirement Income Max^® 1.2 rider if:

• the Annuitant is age 86 or older (lower if required by state law); or

• the Annuitant is not also an Owner (except in the case of non-natural Owners); or

• there are more than two Owners.

Furthermore, if the joint life option is elected, we will not issue the Retirement Income Max^® 1.2 rider if:

• the Annuitant’s spouse is 86 or older (lower if required by state law); or

• the Annuitant’s spouse is not a joint Owner along with the Annuitant; or

• the Annuitant’s spouse is not the sole primary beneficiary (and there is no joint Owner).

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

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Termination

The Retirement Income Max^® 1.2 rider will terminate upon the earliest of the following:

• the date we receive Written Notice from You requesting termination of the rider if such notice is received before midnight of the 30^th calendar day after You receive the rider;

• the date we receive Written Notice from You requesting termination of the rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;

• prior to Your Policy Value reaching zero, the date we receive in good order required information to process a death claim upon the death of the Annuitant (or if the joint life option was elected, the death of the Annuitant’s spouse if that spouse was eligible to and elected to continue the policy as the surviving spouse);

• on or after Your Policy Value reaching zero, upon the death of the Annuitant (or if the joint life option was elected, the death of the Annuitant’s spouse if that spouse was eligible to and elected to continue the policy as the surviving spouse);

• Annuitization (however, if You have reached Your maximum Annuity Commencement Date You may choose an Annuitization option which guarantees You lifetime payments in an amount equal to Your rider withdrawal amount);

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

• the date an excess withdrawal reduces Your Policy Value to zero;

• 60 days after we provide Written Notice, if Policy Value remains in one or more non-Designated Investment Options; or

• termination of Your policy.

Please note: This rider terminates upon Annuitization and there is a maximum Annuity Commencement Date at which time Your policy will be Annuitized according to its terms. However, if You have reached Your maximum Annuity Commencement Date, we will allow You to Annuitize Your policy and elect to receive lifetime annuity payments which are at least equal to Your rider withdrawal amount. Please contact us for more information concerning Your options.

Retirement Income Choice^® 1.7 Rider

If You elect the Retirement Income Choice^® 1.7 rider identified below, which provides certain guaranteed benefits, the Company requires Your Policy Value to be allocated into designated investment options. One or more of the designated investment options may include a volatility control strategy. Volatility control strategies, in periods of high market volatility, could limit Your participation in market gains; this may conflict with Your investment objectives by limiting Your ability to maximize potential growth of Your Policy Value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns. Volatility control (and similar terms) can encompass a variety of investment strategies of different types and degrees; therefore, You should read the applicable annuity and underlying fund portfolio prospectuses carefully to understand how these investment strategies may affect Your Policy Value and rider benefits. The Company’s requirement to invest in accordance with designated investment options, which may include volatility control, may reduce our costs and risks associated with this rider. You pay an additional fee for the rider benefits which, in part, pay for protecting the rider benefit base from investment losses. Since the rider benefit base does not decrease as a result of investment losses, volatility control strategies might not provide meaningful additional benefit to You. You should carefully evaluate with Your financial professional whether to invest in funds with volatility control strategies, taking into consideration the potential positive or negative impact that such strategy may have on Your investment objectives, Your Policy Value and the benefits under the Retirement Income Choice^® 1.7 rider. If You determine that funds with volatility control strategies are not consistent with Your investment objectives, other designated investment options are available under the Retirement Income Choice^® 1.7 rider that do not invest in funds that utilize volatility control strategies.

Retirement Income Choice^® 1.7 – Summary

You may elect to purchase the optional Retirement Income Choice^® 1.7 rider, which provides You with: (1) a Guaranteed Lifetime Withdrawal Benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that You allocate 100% of Your Policy Value in certain designated investment options which are designed to help manage our risk and support the guarantees under the rider. If you elect the Retirement Income Choice^® 1.7 rider you cannot elect the Transamerica Principal Optimizer^SM, Retirement Income Max^® 1.2 or Transamerica Income Edge^SM 1.2 riders. The tax rules for qualified policies may limit the value of this rider. Please Note: There are investment restrictions associated with this benefit that can limit participation in market gains. Withdrawals taken in excess of the prescribed limits (rider

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withdrawal amount) will reduce the amount of the benefit and may eliminate the benefit altogether, if the amount of the excess withdrawal exceeds the Policy Value at the time of the withdrawal. The fee for the rider will not be reduced for any investment losses to Policy Value and, in fact, may be increased if there are withdrawals taken in excess of the rider withdrawal amount. Withdrawals taken while the contract value is greater than zero are withdrawals of the Owner’s own money (not the Company’s). Please consult a qualified financial professional before electing the Retirement Income Choice^® 1.7 rider for a qualified policy.

Please Note: This rider may not be issued or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The benefits under the Retirement Income Choice^® 1.7 rider are based on our claims-paying ability.

The Retirement Income Choice^® 1.7 rider and additional options may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options for electing a benefit, please contact Your financial intermediary or our Administrative Office.

Under this benefit, You can receive up to the rider withdrawal amount each rider year (first as withdrawals from Your Policy Value and, if necessary because Your Policy Value goes to zero by other than an excess withdrawal, as payments from us), starting with the rider year immediately following the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) attaining the minimum benefit age and lasting until the Annuitant’s (or the surviving spouse’s if the joint life option is elected) death (unless Your withdrawal base is reduced to zero because of an “excess withdrawal”; see Withdrawal Base Adjustments and Rider Death Benefit Adjustments, sections in the prospectus). A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date. The withdrawal percentage used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

Of course You can always withdraw an amount up to Your Cash Value pursuant to Your rights under the policy at Your discretion. See Appendix – Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Please note:

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

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

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

• Because the Guaranteed Lifetime Withdrawal Benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for You if You do not foresee a need for liquidity and Your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All Policy Value must be allocated to a limited number of specified investment options. The investment options are categorized within designated investment groups, each of which may have a different price point. You should consult with Your registered representative to assist You in determining whether these investment options are suited for Your financial needs and risk tolerance.

• Any withdrawal in any rider year that is in excess of the rider withdrawal amount is an excess withdrawal. The rider year begins on the rider date and thereafter on each rider anniversary.

• An excess withdrawal will impact the withdrawal base, the withdrawal base components and rider death benefit (if applicable) on a greater than dollar-for-dollar basis when the Policy Value, after the rider withdrawal amount is withdrawn, is less than the withdrawal base components and rider death benefit and may eliminate the benefit.

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

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• Upon receiving due proof of death of the Annuitant (or the death of the surviving spouse if the joint option is elected and the surviving spouse was eligible to and elected to continue the policy), the Retirement Income Choice^® 1.7 rider terminates and all benefits thereunder cease.

• You may terminate the rider by providing Written Notice to us requesting termination during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter. See Termination section below.

• If Your Policy Value reaches zero, the Company may require satisfactory evidence a person is alive if a payment is based on that person being alive. For example, a notarized letter may be provided as satisfactory evidence a person is living.

• Retirement Income Choice 1.7 will terminate on the date an excess withdrawal reduces Your Policy Value to zero.

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

• The tax rules for qualified policies may limit the value of this rider. Please consult a financial professional before electing the Retirement Income Choice^® 1.7 rider for a qualified policy.

• Withdrawals up to the rider withdrawal amount are not subject to an Excess Interest Adjustment.

Like all withdrawals, withdrawals up to the rider withdrawal amount while this rider is in effect also:

• reduce Your Policy Value;

• reduce Your base policy death benefit and other benefits;

• may be subject to surrender charges if the withdrawal is greater than the Surrender Charge Free Amount;

• may be subject to income taxes and federal tax penalties (see TAX INFORMATION); and

• may be limited or restricted under certain qualified policies. (See TAX INFORMATION - Qualified Policies and TAX INFORMATION - Optional Living Benefits).

Retirement Income Choice^® 1.7 – Rider Withdrawal Amount

You can withdraw up to the rider withdrawal amount in any rider year (after attaining the minimum benefit age) from Your Policy Value without causing an excess withdrawal. See Withdrawal Base Adjustments and Rider Death Benefit Adjustments below.

The rider withdrawal amount is zero if the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has not attained the minimum benefit age on the rider date and remains zero until the first day of the rider year after the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has attained the minimum benefit age. On the first day of the rider year after the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has attained at least the minimum benefit age, the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage. See applicable Rate Sheet Prospectus Supplement for additional information. Surrender charges may apply if Your rider withdrawal amount exceeds Your Surrender Charge Free Amount.

For qualified policies: If the plan participant (generally the Annuitant) attains age 72 (or age 70½ if the Annuitant attained 70½ before 1/1/2020), the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

• the rider withdrawal amount described above; or

• an amount equal to any minimum required distribution amount, if any. For riders added on the Policy Date, the minimum required distribution during the first rider year is based on the initial premium (initial premium could include premium from transfers received after the policy effective date, but must be deemed initial premium). For riders added after the policy date, if the policy to which the rider is attached was in force on December 31^st of the previous year, the minimum required distribution for the first rider year is calculated using the year-end Policy Value plus any actuarial present value from the previous year. For riders added after the Policy Date and the policy to which the rider is attached was not in force on December 31^st of the previous year, the minimum required distribution for the first rider year is based on the Policy Value on the rider date. The minimum required distribution is calculated based on the rules established by the IRS. The minimum required distribution may only be used if all of the following are true:

a.  the policy to which this rider is attached is a tax-qualified policy for which the IRS minimum required distributions are required,

b.  the minimum required distributions do not start prior to the Annuitant’s attained age of 72 (or age 70 ½ if the Annuitant attained 70½ before 1/1/2020),

c.	the minimum required distributions are based on either the Uniform Lifetime table or the Joint Life and Last Survivor Expectancy table,
d.	the minimum required distributions are based on age of the living Annuitant. The minimum required distributions cannot be based on the age of someone who is deceased,
e.	the minimum required distributions are based only on the policy to which this rider is attached,

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f.	the minimum required distributions are only for the current rider year. Amounts carried over from past rider years are not considered, and
g.	if an excess withdrawal is taken in the previous rider year, the minimum required distribution will not be used in calculating the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

If any of the above are not true, then the minimum required distribution is equal to zero and it is not available as a rider withdrawal amount.

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

If Your Policy Value reaches zero:

• by means other than an excess withdrawal, then You cannot make further premium payments and all policy features, benefits, and guarantees other than the base Guaranteed Lifetime Withdrawal Benefits and the rider death benefit (if applicable), provided by this rider terminate. If Your Policy Value reaches zero by other than an excess withdrawal, and the rider remains in force, we will unless otherwise instructed, make payments using the current payment instructions on file with us that are equal to the rider withdrawal amount divided by the frequency of payments. If the Annuitant (or younger of Annuitant or Annuitant’s spouse if the joint option is elected) has attained the minimum benefit age and a systematic option is not active at the time the Policy Value reaches zero, a payment will be established. Unless instructed otherwise, the default frequency will be monthly, unless the amount does not meet the minimum systematic payout requirements of Your policy. If that occurs, we reserve the right to change the frequency and amount in order to meet the minimum systematic payout requirement. If the minimum benefit age has not been attained, payments will begin on the rider anniversary following the attainment of the minimum benefit age.

• due to an excess withdrawal, then the rider terminates (as does the policy).

Please note:

• If the rider is added prior to the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) attaining the minimum benefit age, the rider withdrawal amount will be zero until the beginning of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age, however, You will still be charged a rider fee upon electing the rider.

• The rider year begins on the rider date and thereafter on each rider anniversary.

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

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

• All Policy Value must be allocated to a limited number of specified funds. (See Designated Investment Options below.)

Rate Sheet Prospectus Supplement

The fee, growth and withdrawal percentages, as well as the valuation frequency and minimum benefit age are disclosed in a Rate Sheet Prospectus Supplements. We periodically issue new Rate Sheet Prospectus Supplements that may reflect different fee, growth and withdrawal percentages, valuation frequencies and minimum benefit ages than the previous Rate Sheet Prospectus Supplements. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC). Additionally, all superseded Rate Sheet Prospectus Supplement fee, growth rate and withdrawal rate percentages, as well as valuation frequency and minimum benefit ages can be found in an Appendix to the SAI. In order to receive the applicable withdrawal, growth and fee percentages, minimum benefit age and valuation frequency: (1) Your application must be signed and received within the stated time period set forth in the applicable Rate Sheet Prospectus Supplement and (2) Your application must be received and Your policy funded within the stated time period set forth in the applicable Rate Sheet Prospectus Supplement. Withdrawal, growth and fee percentages, as well as minimum benefit ages and valuation frequencies reflected in a Rate Sheet Prospectus Supplement with an effective period that does not include the date You signed Your application will not apply to Your policy. You should not purchase this rider without first obtaining the applicable Rate Sheet Prospectus Supplement. You can contact us at www.transamerica.com to receive a Rate Sheet Prospectus Supplement applicable to You.

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Retirement Income Choice^® 1.7 - Withdrawal Percentage

We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the Annuitant’s age (or the Annuitant's spouse's age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the Annuitant’s (or the Annuitant's spouse's if younger and the joint life option is elected) attainment of the minimum benefit age.

The withdrawal percentage is disclosed in the Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

Please Note: Once established, the withdrawal percentage will not change except in certain instances involving automatic step-ups. Withdrawal percentages will change when an automatic step-up occurs and You have crossed into another age band prior to the automatic step-up, seeAutomatic Step-Up section in the prospectus.

Retirement Income Choice^® 1.7 - Withdrawal Base

We use the withdrawal base to calculate the rider withdrawal amount and rider fee. The withdrawal base on the rider date is the Policy Value. Thereafter, the withdrawal base is equal to the greater of the step-up component and the growth component.

Step-Up Component

The step-up component is used to calculate the withdrawal base. The step-up component is equal to the withdrawal base on the rider date. During any rider year, the step-up component is increased by additional premium payments, and is reduced for excess withdrawals.

On each rider anniversary, the step-up component will equal the greatest of:

1. the current step-up component;

2. the Policy Value on the rider anniversary; and

3. the highest Policy Value in the previous rider year based on the valuation frequency. (see Automatic Step-Up below).

Item 3 above will be zero if there have been any excess withdrawals in the current rider year.

Growth Component

The growth component is used to calculate the withdrawal base. The growth component is equal to the withdrawal base on the rider date. During any rider year, the growth component is increased by additional premium payments, and is reduced for excess withdrawals.

On each rider anniversary, the growth component will equal the greater of A plus (B multiplied by C), where:

(A)	Is the current growth component;
(B)	Is the growth basis; and
(C)	Is the growth percentage.

Item C above will be zero if there have been any withdrawals in the current rider year or after the 10^th rider anniversary.

Automatic Growth Component Stacking

On each rider anniversary after the rider date, the growth component will be set equal to the withdrawal base if the withdrawal base is greater than the growth component.

Growth Basis

The growth basis is used to calculate the growth component. It is equal to the initial growth component on the rider date. During any rider year, the growth basis is increased by additional premium payments, and is reduced for excess withdrawals.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount and rider fee.

• Your withdrawal base is not a Cash Value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any Subaccount, and it is not a guarantee of Policy Value.

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

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• Because a withdrawal will negatively affect the growth component for that rider year, You should consider Your need or possible need to take withdrawals within the first 10 rider years in deciding whether to purchase the rider. See “Appendix - Hypothetical Example of the Withdrawal Base Calculation - Retirement Income Choice^® 1.7 Rider” which illustrates the hypothetical examples of the withdrawal base calculation.

Retirement Income Choice^® 1.7 - Automatic Step-Up

On each rider anniversary, the rider receives an automatic step-up if the withdrawal base is set equal to 2 or 3 from the Retirement Income Choice^® 1.7 – Withdrawal Base - Step-Up Component section above. If neither value is greater than the current withdrawal base no automatic step-up will occur. If the withdrawal percentage has been established due to a previous withdrawal, the withdrawal percentage (as indicated in the Rate Sheet Prospectus Supplement) will increase if You have crossed into another age band prior to the automatic step-up. Please note, the increase is part of the automatic step-up and if no automatic step-up occurs then there will be no withdrawal percentage increase.

On each rider anniversary, the rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider.

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

Retirement Income Choice^® 1.7 - Withdrawal Base Component Adjustments

Cumulative gross withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base components (growth component, growth basis or step-up component) of the withdrawal base. Any amount of gross withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base components, however, by the greater of the dollar amount of the excess withdrawal (if the Policy Value is greater than the withdrawal base component) or a pro rata amount (in proportion to the reduction in the Policy Value when the Policy Value is less than the withdrawal base component), possibly to zero. If an excess withdrawal reduces the Policy Value to zero, this rider will terminate. Withdrawal base component adjustments occur immediately following excess withdrawals. See “Appendix - Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base component by a pro rata amount. The effect of an excess withdrawal is magnified if the Policy Value is less than the withdrawal base component. See the “Appendix - Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical excess withdrawals in more detail.

Please Note: You retain all responsibility for monitoring excess withdrawals. If You take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because Your regular or scheduled withdrawals may thereafter all be excess withdrawals that reduce or eliminate Your benefit on an accelerated basis.

Example. Assume You are the Owner and Annuitant and You make a single premium payment of $100,000 when You are 66 years old. Further assume that You do not make any withdrawals or subsequent premium payments, no automatic step-ups or growth component stacking occurred, but that after five years Your Policy Value has declined to $90,000 solely because of negative investment performance. With an assumed annual growth rate percentage of 5.5%, after 5 years the withdrawal base is equal to $127,500 which is the greater of the step-up component of $100,000 and the growth component of $127,500. You could receive up to $7,012.50 which is the assumed withdrawal percentage of 5.5% for the single life option multiplied by the withdrawal base of $127,500, each rider year for the rest of Your life (assuming that You take Your first withdrawal when You are age 71, that You do not withdraw more than the rider withdrawal amount in any one year and there are no future automatic step-ups or growth component stacking.)

Example continued. Assume the same facts as above, but You withdraw $10,000 when You are 71 years old. That excess withdrawal decreases Your future rider withdrawal amount to $6,760.05.

See the “Appendix - Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

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Retirement Income Choice^® 1.7 - Designated Investment Options

If You elect this rider, You must designate 100% of Your Policy Value into one or more of the designated investment options available under the respective designated allocation groups that have been approved for the Retirement Income Choice^® 1.7 rider. Each of the designated investment groups (“A”, “B” and “C”) may have different price point. See “Appendix - Designated Investment Options” for a complete listing of available investment 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.

Transfers between the designated investment options are allowed as permitted under the policy; however, You cannot transfer any amount (or allocate premium payments) to any non-designated investment option. Within 30 days following the fifth rider anniversary (and each successive fifth rider anniversary) You can terminate this rider. Starting the next Business Day, You may transfer (or allocate premium payments) to a non-designated investment option. Terminating the rider will result in losing all Your benefits under the rider.

Please note:

• The earliest You can transfer (or allocate premium payments) to a non-designated investment option is the first Business Day after the fifth rider anniversary. You will be required to terminate the rider first. If You terminate the rider You will lose all of its benefits.

• We have processes and procedures in place that will prevent allocation to a Subaccount that is not a designated investment option. These processes and procedures include restricting transfers requested by telephone and internet.

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

Retirement Income Choice^® 1.7 - Additional Options

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

• Death Benefit;

• Joint Life; and

• Income Enhancement^SM.

There is an additional fee if You elect the Death Benefit and/or the Income Enhancement^SM Benefit option(s) under the rider. There may be an additional fee if the Joint Life option is elected. If You elect the Joint Life option, then the withdrawal percentage (used to calculate the rider withdrawal amount) may be lower. Furthermore, if You elect the Joint Life option in combination with the Death Benefit and/or the Income Enhancement^SM Benefit option(s), then the fee for each of those additional options may be different than under the Single Life option. See Retirement Income Choice^® 1.7 Rider Fees. There may be different issue ages depending upon which options You elect. The rider fee will be disclosed in a Rate Sheet Prospectus Supplement.

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

Rider Death Benefit. The rider death benefit on the rider date is equal to the withdrawal base . After the rider date, the rider death benefit is equal to:

• the rider death benefit on the rider date; plus

• subsequent premium payments; less

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

Rider Death Benefit Adjustments. Gross withdrawals up to the rider withdrawal amount in a rider year will reduce the rider death benefit on a dollar-for-dollar basis. Gross withdrawals in excess of the rider withdrawal amount in a rider year will reduce the rider death benefit by the greater of the dollar amount of the excess withdrawal or a pro rata amount (in proportion to the reduction in Policy Value), and possibly to zero. See “Appendix - Hypothetical Adjusted Withdrawals – Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 Riders” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that results in pro rata adjustments. Rider death benefit adjustments occur immediately following all withdrawals.

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Please note:

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

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

• If an Owner who is not the Annuitant dies and the surviving spouse is eligible to and elects to continue the policy, then no additional amount is payable. If the policy is not continued, then the surviving Owner (who is also the sole beneficiary) may elect to receive lifetime annuity payments equal to the rider withdrawal amount divided by the number of payments each year instead of receiving the policy’s Cash Value. See TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements. (The payment of a death benefit under the policy is triggered by the death of the Annuitant.)

• The additional death benefit adjustment differs from the adjusted withdrawal amount for the Guaranteed Minimum Death Benefits described in DEATH BENEFIT - Guaranteed Minimum Death Benefits. Accordingly, withdrawals may affect the additional death benefit differently than the Guaranteed Minimum Death Benefits.

The additional death benefit payment option may be referred to as “rider death benefit” on Your policy statement and other documents.

Joint Life Option. If You elect this rider, then You can also elect to postpone termination of the rider until the later of the Annuitant or Annuitant’s spouse’s death (only if the Annuitant’s spouse is eligible to and elects to continue the policy, see TAX INFORMATION –Tax Status of a Nonqualified Policy– Distribution Requirements). If You elect the Joint Life option, then the withdrawal percentage used to calculate the rider withdrawal amount may be lower. The withdrawal percentage that is used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

Please note:

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

• The rider fee may be greater if this option is elected.

• The Annuitant's spouse (or in certain instances a non-natural entity acting for the benefit of the Annuitant's spouse) must be either a joint Owner along with the Annuitant or the sole primary beneficiary (and there is no joint Owner), if You elect this option. (Please see Spousal Continuation section for more detail regarding Annuitant's spouse).

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

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

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

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

• The rider issue ages may vary if You elect this option.

Income Enhancement^SM Option. If You elect this rider, You can also elect to have Your withdrawal percentage increase to 150% of the non-income enhanced withdrawal percentage if either the Annuitant (or the Annuitant’s spouse if the joint life option is elected) is confined, due to a medical necessity in a hospital or nursing facility. Benefits from this option are not available unless the rider has been in effect for 12 months (the “waiting period”) and confinement must meet the elimination period of 90 days within the last 365 days. The elimination period and waiting period can, but do not need to, run concurrently.

Please note:

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

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

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

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

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A Qualifying Hospital must meet the following criteria:

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

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

• It provides 24-hour Nursing Service by or under the supervision of Nurses;

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

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

A Qualifying Nursing Facility must meet the following criteria:

• It is operated pursuant to the laws and regulations of the state in which it is located as a skilled nursing facility;

• It provides room and board accommodations;

• It provides 24-hour nursing services, 7 days a week by on-site Nurses on a continuing inpatient basis;

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

• It has a licensed Physician available to supervise; and

• It performs and maintains clinical assessments based on uniform minimum data as set forth in Section 1819(b)(3)(A) of the Social Security Act, as amended.

A Qualifying Nursing Facility does not include:

• Assisted living facilities or residential care facilities;

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

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

• Personal care homes, personal care boarding homes, residential care facilities;

• A rehabilitation hospital or basic care facilities;

• Adult foster care facilities, congregate care facilities, family and group living assisted living facilities, domiciliary care home, independent living apartments, hotels or motels; or

• Other facilities similar to those described above.

We will require confirmation of confinement in a qualifying hospital or a qualifying nursing facility while benefit payouts are being received. Confirmation of that confinement will be attained and approved by completing our “Income Enhancement^SM Election and Proof of Confinement Questionnaire” form. This form requires additional proof of confinement which may be a Physician’s statement, a statement from a hospital or nursing facility administrator, or any other information satisfactory to us which may include information from third party or company interviews and/or visits of the facility. If it is determined that the qualifying individual was not confined in an eligible facility as defined above and has received payments under the Income Enhancement^SM Option, those payments could be considered an excess withdrawal and have a negative effect on the rider values. If confinement ceases, You may re-qualify by satisfying another 90-day elimination period requirement.

Retirement Income Choice^® 1.7 Fees

The rider fee is deducted at the end of each successive rider quarter on the same day of the month as the rider date. If a day does not exist in a given month, the first day of the following month will be used. If a rider fee is deducted from a Subaccount on a day which is not a Business Day, the value of the Accumulation Units redeemed will be determined as of the next Business Day. The rider fee will be adjusted for additional premium payments, excess withdrawals, and transfers between designated investment groups during the rider quarter. It will be deducted automatically from Your Policy Value at the end of each rider quarter.

The rider fee percentages may change after the first rider year due to an automatic step-up. Your rider fee may increase (or decrease) at the time of any automatic step-up. See Automatic Step-Up section. The current rider fee percentages will not exceed the maximum fee percentages in effect when You purchased the rider. The current rider fee percentages will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

In order for the fee disclosed on the applicable Rate Sheet Prospectus Supplement to apply: (1) Your application must be signed within the stated time period set forth in the applicable Rate Sheet Prospectus Supplement and (2) Your application must be received and Your policy must be funded within the stated time periods set forth in the applicable Rate Sheet Prospectus Supplement. Rider fees reflected in a Rate Sheet Prospectus Supplement with an effective period that does not include the date You signed Your application will not apply to Your policy. You should not purchase this rider without first obtaining the applicable Rate Sheet Prospectus Supplement. You can contact us at www.transamerica.com to receive a Rate Sheet Prospectus Supplement applicable to You.

On an annual basis, in general terms, the rider fee is the applicable rider fee percentage multiplied by the withdrawal base.

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

(A)	is the withdrawal base;
(B)	is the sum of each designated investment group's rider fee percentage multiplied by the applicable designated investment group's value;
(C)	is the total Policy Value; and
(D)	is the number of days in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: Initial Premium = $100,000; Fund Allocations such that Group A = $50,000, Group B = $30,000, and Group C = $20,000; Withdrawal Base = $100,000; Policy Value = $100,000; Investment Group fee percentages of Group A = 1.45%, Group B = 1.10% and Group C = 0.70%; and 91 total days in the rider quarter.

Example 1: Calculation at rider issue for the first quarter fee. The rider fee is:

= 100,000 * [(50,000*0.0145) + (30,000*0.0110) + (20,000*0.0070)] / 100,000 * (91/365)

= 100,000 * (725 + 330 + 140) / 100,000 * (91/365)

= 100,000 * 1,195/100,000 * (91/365)

= 1,195 * (91/365)

= $297.93

A portion of the rider fee will also be assessed upon full surrender of the policy or other termination of the rider. The quarterly fee will be adjusted based on the number of days remaining until the end of the next rider quarter for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

On each rider anniversary the rider fee percentages may increase (or decrease) at the time of an automatic step-up. See Automatic Step-Up section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentages will be disclosed in a Rate Sheet Prospectus Supplement which may be amended from time to time by us. Please contact Your financial intermediary or call our Administrative Office to determine whether the Rate Sheet Prospectus Supplement has been amended. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC). Each time an automatic step-up will result in a rider fee percentage increase, You will have the option to reject the automatic step-up and reinstate the withdrawal base and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that You do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive Your rejection, in good order, at our Administrative Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Please note regarding the rider fee:

• Because the rider fee is a percentage of the withdrawal base, it could be a much higher percentage of Your Policy Value, particularly in the event that Your Policy Value decreases significantly.

• Because the rider fee is a percentage of the withdrawal base, the amount of the base rider fee we deduct will increase if the withdrawal base increases (although the percentage(s) may remain the same).

• If You make a transfer from one designated allocation group to another designated allocation group that has a higher rider fee percentage, then the resulting rider fee will be higher.

Rider Fee Adjustment for Premium Payments and Excess Withdrawals. A rider fee adjustment will be calculated for subsequent premium payments and excess withdrawals because these events will change the withdrawal base. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

The rider fee adjustment is calculated by multiplying (A) by (B) divided by (C) multiplied by (D), where:

(A)	is the withdrawal base change (i.e. withdrawal base after the transaction minus the withdrawal base before the transaction);
(B)	is the sum of each designated investment group's rider fee percentage multiplied by the applicable designated investment group's transaction amount;
(C)	is the total transaction amount; and
(D)	is the number of days remaining in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: All initial values as in Example 1; Subsequent Premium = $10,000, allocated such that Group A = $5,000, Group B = $3,000, and Group C = $2,000; and 30 remaining days in the rider quarter.

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Example 2: Calculation of the first quarter rider fee adjustment for a subsequent premium. The fee adjustment is:

= 10,000 * [(5,000*0.0145) + (3,000*0.0110) + (2,000*0.0070)] / 10,000 * (30/365)

= 10,000 * (72.50 + 33 + 14) / 10,000 * (30/365)

= 10,000 * 119.50/10,000 * (30/365)

= 119.50 * (30/365)

= $9.82

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

= 297.93 + 9.82

= $307.75

Rider Fee Adjustment for Transfers. For transfers that You make between different designated investment options in different designated allocation groups on other than the first Business Day of a rider quarter, a rider fee adjustment will be applied. This adjustment is necessary because of differences in the rider fee percentages. The adjustment in the rider fee will ensure that You are charged the correct overall rider fee for that quarter. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

The rider fee adjustment for transfers is calculated by multiplying (A) by (B) divided by (C) multiplied by (D), where:

(A)	is the withdrawal base;
(B)	is the sum of each designated investment group's rider fee percentage multiplied by the applicable designated investment group's transaction amount;
(C)	is the total Policy Value; and
(D)	is the number of days remaining in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: All initial values as in Example 1, as well as a subsequent premium payment as in Example 2; Withdrawal Base = $110,000; Policy Value = $90,000; Fund Transfer from Group A = $5,000, into Group B = $3,000, and into Group C = $2,000; and 15 remaining days in the rider quarter.

Example 3: Calculation of the first quarter rider fee adjustment for a fund transfer. The fee adjustment is:

= 110,000 * [(-5,000*0.0145) + (3,000*0.0110) + (2,000*0.0070)] / 90,000 * (15/365)

= 110,000 * (-72.50 + 33 + 14) / 90,000 * (15/365)

= 110,000 * -25.50/90,000 * (15/365)

= -31.17 * (15/365)

= $-1.28

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

= 307.75 - 1.28

= $306.47

Additional Option Fees. If You elect options with this rider, then You will be charged a fee for each option You elect that is in addition to the rider fee for the base benefit. Each additional fee is charged quarterly before Annuitization and is a percentage of the withdrawal base on each rider anniversary.

We will also deduct a portion of all rider fees, including additional option fees, upon surrender of the policy or other termination of the rider.

Retirement Income Choice^® 1.7 Issue Requirements

We will not issue the Retirement Income Choice^® 1.7 rider if:

• the Annuitant is 86 or older (lower if required by state law); or

• the Annuitant is not also an Owner (except in the case of non-natural Owners); or

• there are more than two Owners.

Furthermore, if the joint life option is elected, we will not issue the Retirement Income Choice^® 1.7 rider if:

• the Annuitant’s spouse is 86 or older (lower if required by state law); or

• the Annuitant’s spouse is not a joint Owner along with the Annuitant; or

• the Annuitant’s spouse is not the primary beneficiary (and there is no joint Owner);

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

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Termination

The Retirement Income Choice^® 1.7 rider and any additional options will terminate upon the earliest of the following:

• the date we receive Written Notice from You requesting termination of the rider if such notice is received before midnight of the 30^th calendar day after You receive the rider;

• the date we receive Written Notice from You requesting termination of the rider if such notice is received by us during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter;

• prior to Your Policy Value reaching zero, the date we receive in good order required information to process a death claim upon the death of the Annuitant (or if the joint life option was elected, the death of the Annuitant’s spouse if that spouse was eligible to and elected to continue the policy as the surviving spouse);

• on or after Your Policy Value reaching zero, upon the death of the Annuitant (or if the joint life option was elected, the death of the Annuitant’s spouse if that spouse was eligible to and elected to continue the policy as the surviving spouse).

• Annuitization (however, if You have reached Your maximum Annuity Commencement Date You may choose an Annuitization option which guarantees You lifetime payments in an amount equal to Your rider withdrawal amount);

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

• the date an excess withdrawal reduces Your Policy Value to zero; or

• termination of Your policy.

Please note: This rider terminates upon Annuitization and there is a maximum Annuity Commencement Date at which time Your policy will be Annuitized according to its terms. However, if You have reached Your maximum Annuity Commencement Date, we will allow You to Annuitize Your policy and elect to receive lifetime annuity payments which are at least equal to Your rider withdrawal amount (if the rider death benefit is elected, this option also guarantees that if the Annuitant and, if the joint life option was elected, Annuitant’s spouse, should die before the sum of all annuity payments equals or exceeds the rider death benefit on the maximum Annuity Commencement Date, the Annuitant's beneficiary will receive a final payment equal to the difference). Please contact us for more information concerning Your options.

Transamerica Income Edge^SM 1.2 Rider

If You elect the Transamerica Income Edge^SM 1.2 rider identified below, which provides certain guaranteed benefits, the Company requires a certain percentage of Your Policy Value to be allocated to the Stable Account, with the remainder to be allocated to the select investment options and flexible investment options. One or more of the select investment options and flexible investment options may include a volatility control strategy. Volatility control strategies, in periods of high market volatility, could limit Your participation in market gains; this may conflict with Your investment objectives by limiting Your ability to maximize potential growth of Your Policy Value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing policy Owners with the opportunity for smoother performance and better risk adjusted returns. Volatility control (and similar terms) can encompass a variety of investment strategies of different types and degrees; therefore, You should read the applicable annuity and underlying fund portfolio prospectuses carefully to understand how these investment strategies may affect Your Policy Value and rider benefits. The Company’s requirement to invest in accordance with the required allocations, which may include volatility control strategies, may reduce our costs and risks associated with this rider. You pay an additional fee for the rider benefits which, in part, pay for protecting the rider benefit base from investment losses. Since the rider benefit base does not decrease as a result of investment losses, volatility control strategies might not provide meaningful additional benefit to You. You should carefully evaluate with Your financial professional whether to allocate to Subaccounts that invest in underlying funds with volatility control strategies, taking into consideration the potential positive or negative impact that such strategy may have on Your investment objectives, Your Policy Value and the benefits under the Transamerica Income Edge^SM 1.2 rider. If You determine that underlying funds with volatility control strategies are not consistent with Your investment objectives, other investment options are available under the Transamerica Income Edge^SM 1.2 rider that do not invest in underlying funds that utilize volatility control strategies.

Transamerica Income Edge^SM 1.2 - Summary

You may elect to purchase the optional Transamerica Income Edge^SM 1.2 rider, which provides You with: (1) a Guaranteed Lifetime Withdrawal Benefit; and (2) an opportunity for increases in the rider withdrawal amount. This rider is available during the accumulation phase, and requires that You allocate a certain percentage of Your Policy Value to the Stable Account and to select investment options and flexible investment options some of which are designed to help manage our risk and support the guarantees under the rider. If you elect the Transamerica Income Edge^SM 1.2 rider you cannot elect the Transamerica Principal Optimizer^SM,

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Retirement Income Choice^® 1.7 or Retirement Income Max^® 1.2 riders. The tax rules for qualified policies may limit the value of this rider. Please Note: There are investment restrictions associated with this benefit that can limit participation in market gains. Withdrawals taken in excess of the prescribed limits (rider withdrawal amount) will reduce the amount of the benefit and may eliminate the benefit altogether, if the amount of the excess withdrawal exceeds the Policy Value at the time of the withdrawal. The fee for the rider will not be reduced for any investment losses to Policy Value and, in fact, may be increased if there are withdrawals taken in excess of the rider withdrawal amount. Withdrawals taken while the contract value is greater than zero are withdrawals of the Owner’s own money (not the Company’s). Please consult a qualified financial professional before electing the Transamerica Income Edge^SM 1.2 rider for a qualified policy.

Please Note: This rider may not be issued or added to Inherited IRAs (whether a qualified stretch or a 10-year delay) or a nonqualified annuity under which death benefits are being distributed under a nonqualified stretch withdrawal option. The benefits under the Transamerica Income Edge^SM 1.2 rider are based on our claims-paying ability.

The Transamerica Income Edge^SM 1.2 rider may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales, which includes new sales to existing policyowners. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a benefit, please contact Your financial intermediary or our Administrative Office.

If You elect the Transamerica Income Edge^SM 1.2 rider, You can receive up to the rider withdrawal amount each rider year. Such rider withdrawal amounts will first be made as withdrawals from Your Policy Value (excluding the Stable Account until other investment options are depleted of value). If Your Policy Value goes to zero by other than an excess withdrawal, rider withdrawal amounts will continue as payments from us. Rider withdrawal amounts may begin the rider year immediately following the Annuitant’s (or Annuitant’s spouse if younger and the joint life option is elected) attainment of the minimum benefit age, and may last until the Annuitant’s (or surviving spouse’s if joint life option is elected) death unless Your withdrawal base is reduced to zero because of an “excess withdrawal.” See Withdrawal Base Adjustments section below for more information. A rider year begins on the rider date (the date the rider becomes effective) and thereafter on each anniversary of that date. The withdrawal percentage that is used to determine Your rider withdrawal amount and required allocations will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

Of course, You can always withdraw an amount up to Your Cash Value pursuant to Your rights under the policy although withdrawals that are excess withdrawals will reduce Your withdrawal base and future GLWBs. See “Appendix - Hypothetical Adjusted Withdrawals - Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

If You elect the Transamerica Income Edge^SM 1.2 rider, a certain percentage of Your Policy Value on the rider date must be allocated to the Stable Account, the select investment options and the flexible investment options, as specified in the applicable Rate Sheet Prospectus Supplement. Transfers to and from the Stable Account are not permitted. Withdrawals from the Stable Account are not permitted until all other investment options are depleted of value. Withdrawals from the flexible investment options and select investment options will be deducted on a pro-rata basis from each investment option You have allocated to. If You do not wish to maintain the required allocation percentages for the investment options, the rider must be terminated, subject to the termination restrictions and requirements of the rider, prior to making any transfer. Additional detail regarding the required allocations is provided in the Required Allocations section, below.

Please note:

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

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

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

78

• Because the Guaranteed Lifetime Withdrawal Benefit under this rider is accessed through regular withdrawals that do not exceed the rider withdrawal amount, the rider may not be appropriate for You if You do not foresee a need for liquidity and Your primary objective is to take maximum advantage of the tax deferral aspect of the policy.

• All Policy Value must be allocated to the select and flexible investment options and the Stable Account, subject to specified allocation percentages as provided in the Rate Sheet Prospectus Supplement. You should consult with Your financial professional to assist You in determining whether these investment options and required allocations are suited for Your financial needs and risk tolerance.

• Any withdrawal in any rider year that is in excess of the rider withdrawal amount (including any surrender charge or Excess Interest Adjustment) is an excess withdrawal. The rider year begins on the rider date and thereafter on each rider anniversary.

• An excess withdrawal will impact the withdrawal base on a greater than dollar-for-dollar basis when the Policy Value, after the rider withdrawal amount is withdrawn, is less than the rider withdrawal base and may eliminate the benefit. See “Appendix – Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders”.

• Upon receiving due proof of death of the Annuitant (or the death of the surviving spouse if the joint option is elected), the Transamerica Income Edge^SM 1.2 rider terminates and all benefits thereunder cease.

• You may terminate the rider by providing Written Notice to us requesting termination during the 30 days following the fifth rider anniversary or every fifth rider anniversary thereafter. See Termination section, below.

• If Your Policy Value reaches zero, the Company may require satisfactory evidence a person is alive if a payment is based on that person being alive. For example, a notarized letter may be provided as satisfactory evidence a person is living.

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

• The tax rules for qualified policies may limit the value of this rider. Please consult a financial professional before electing the Transamerica Income Edge^SM 1.2 rider for a qualified policy.

• Withdrawals up to the rider withdrawal amount are not subject to an Excess Interest Adjustment.

Like all withdrawals, withdrawals up to the rider withdrawal amount, while this rider is in effect also:

• reduce Your Policy Value by the amount of the withdrawal;

• reduce Your base policy death benefit and other benefits;

• may be subject to surrender charges if the withdrawal is greater than the Surrender Charge Free Amount;

• may be subject to income taxes and federal tax penalties (see TAX INFORMATION); and

• may be limited or restricted under certain qualified policies. (see TAX INFORMATION – Qualified Policies and TAX INFORMATION – Optional Living Benefits)

Transamerica Income Edge^SM 1.2 - Rider Withdrawal Amount

You can withdraw up to the rider withdrawal amount in any rider year (after attainment of the minimum benefit age) from Your Policy Value without causing an excess withdrawal. See Withdrawal Base Adjustments below.

The rider withdrawal amount is zero if the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has not attained the minimum benefit age on the rider date and remains zero until the first day of the rider year after the Annuitant (or the Annuitant's spouse if younger and the joint life option is elected) has attained the minimum benefit age. On the first day of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age the rider withdrawal amount is equal to the withdrawal base multiplied by the withdrawal percentage. See applicable Rate Sheet Prospectus Supplement for additional information. Surrender charges may apply if Your rider withdrawal amount exceeds Your Surrender Charge Free Amount.

For qualified policies: If the plan participant (generally the Annuitant) attains age 72 (or age 70½ if the Annuitant attained 70½ before 1/1/2020), the rider withdrawal amount for that rider year (and each subsequent rider year) is equal to the greater of:

• the rider withdrawal amount described above; or

• an amount equal to any minimum required distribution amount, if any. For riders added on the Policy Date, the minimum required distribution during the first rider year is based on the initial premium (initial premium could include premium from transfers received after the policy effective date, but must be deemed initial premium). For riders added after the Policy Date, if the policy to which the rider is attached was in force on December 31st of the previous year, the minimum required distribution for the first rider year is calculated using the year-end Policy Value plus any actuarial present value from the previous year. For riders added after the Policy Date and the policy to which the rider is attached was not in force on December 31st of the previous year, the minimum required distribution for the first rider year is based on the Policy Value on the rider date. The minimum required distribution is calculated based on the rules established by the IRS. The minimum required distribution may only be used if all of the following are true:

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a.  the policy to which this rider is attached is a tax-qualified policy for which the IRS minimum required distributions are required,

b.  the minimum required distributions do not start prior to the Annuitant’s attained age of 72 (or age 70 ½ if the Annuitant attained 70½ before 1/1/2020),

c.	the minimum required distributions are based on either the Uniform Lifetime table or the Joint Life and Last Survivor Expectancy table,
d.	the minimum required distributions are based on age of the living Annuitant. The minimum required distributions cannot be based on the age of someone who is deceased,
e.	the minimum required distributions are based only on the policy to which this rider is attached,
f.	the minimum required distributions are only for the current rider year. Amounts carried over from past rider years are not considered, and
g.	If an excess withdrawal is taken in the previous rider year, the minimum required distribution will not be used in calculating the rider withdrawal amount. If the minimum required distribution amount (determined as set forth above) exceeds the rider withdrawal amount, the excess will not be treated as an excess withdrawal under the rider.

If any of the above are not true, then the minimum required distribution is equal to zero and it is not available as a rider withdrawal amount.

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

If Your Policy Value reaches zero:

• by means other than an excess withdrawal, then You cannot make premium payments and all other policy features, benefits and guarantees (except those provided by this rider) are terminated. If Your Policy Value reaches zero by other than an excess withdrawal, and the rider remains in force, we will, unless otherwise instructed, make payments using the current payment instructions on file with us that are equal to the rider withdrawal amount divided by the frequency of payments. If the Annuitant (or younger of Annuitant or Annuitant’s spouse if the joint option is elected) has attained the minimum benefit age and a systematic payout option is not active at the time the Policy Value equals zero, a payment will be established. Unless instructed otherwise, the default frequency will be monthly, unless the amount does not meet the minimum systematic payout requirements in Your policy. If that occurs, we reserve the right to change the frequency and amount in order to meet the minimum systematic payout requirements. If the minimum benefit age has not been attained, payments will begin on the rider anniversary following the attainment of the minimum benefit age.

• due to an excess withdrawal, then Your policy will terminate resulting in the termination of this rider. An excess withdrawal that does not cause Your Policy Value to equal zero will not terminate the rider.

Please note:

• If the rider is added prior to the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) having attained the minimum benefit age, the rider withdrawal amount will be zero until the beginning of the rider year after the Annuitant (or the Annuitant’s spouse if younger and the joint life option is elected) has attained the minimum benefit age birthday, however, You will still be charged a rider fee upon electing the rider.

• The rider year begins on the rider date and thereafter on each rider anniversary.

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

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

• Any amount withdrawn in a rider year (including any surrender charge) in excess of the rider withdrawal amount is an excess withdrawal.

• The select and flexible investment options may be changed by us in the future. Any changes to investment allocation requirements will not affect existing policy Owners with an active rider.

Rate Sheet Prospectus Supplement

The fee and withdrawal rate percentages, as well as the valuation frequency, minimum benefit age and required allocations are disclosed in Rate Sheet Prospectus Supplement. We periodically issue new Rate Sheet Prospectus Supplements that may reflect different fee and withdrawal percentages, valuation frequency, minimum benefit age and required allocations, than the previous Rate Sheet Prospectus Supplements. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File

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Numbers 333-233837 for TLIC and 333-233841 for TFLIC). Additionally, all superseded Rate Sheet Prospectus Supplement fee and withdrawal rate percentages, as well as valuation frequency, minimum benefit ages and required allocations can be found in an Appendix to the SAI. In order to receive the applicable withdrawal and fee percentages, required allocation, valuation frequency and minimum benefit age: (1) Your application must be signed and received within the stated time period set forth in the applicable Rate Sheet Prospectus Supplement and (2) Your application must be received and Your policy must be funded within the stated time periods set forth in the applicable Rate Sheet Prospectus Supplement. Withdrawal and fee percentages, as well as required allocations, valuation frequency and minimum benefit age reflected in a Rate Sheet Prospectus Supplement with an effective period that does not include the date You signed Your application will not apply to Your policy. You should not purchase this rider without first obtaining the applicable Rate Sheet Prospectus Supplement. You can contact us at www.transamerica.com to receive a Rate Sheet Prospectus Supplement applicable to You.

Transamerica Income Edge^SM 1.2 – Withdrawal Percentage

We use the withdrawal percentage to calculate the rider withdrawal amount. The withdrawal percentage is determined by the Annuitant’s age (or the Annuitant's spouse's age if younger and the joint life option is elected) and rider duration at the time of the first withdrawal taken on or after the rider anniversary immediately following the Annuitant’s (or the Annuitant's spouse's if younger and the joint life option is elected) attainment of the minimum benefit age.

The withdrawal percentage is disclosed in Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

Please note: Once established, the withdrawal percentage will not change except in certain instances involving automatic step-ups. Withdrawal percentages will change when an automatic step-up occurs and You have crossed into another band or duration prior to the automatic step-up. SeeAutomatic Step –Up section below.

Transamerica Income Edge^SM 1.2 – Withdrawal Base

We use the withdrawal base to calculate the rider withdrawal amount and rider fee. The withdrawal base on the rider date is the Policy Value. During any rider year, the withdrawal base is equal to the withdrawal base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent withdrawal base adjustments due to excess withdrawals.

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

1. the current withdrawal base;

2. the Policy Value on the rider anniversary; and

3. the highest Policy Value in the previous year based on the valuation frequency. (see Automatic Step-Up below).

Item 3 above will be zero if there have been any excess withdrawals in the current rider year.

See “Appendix – Hypothetical Example of Withdrawal Base Calculation – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” which illustrates the hypothetical example of the withdrawal base calculation.

Please note:

• We determine the withdrawal base solely to calculate the rider withdrawal amount and rider fee.

• Your withdrawal base is not a Cash Value, a surrender value, or a death benefit. It is not available for withdrawal, it is not a minimum return for any Subaccount, and it is not a guarantee of Policy Value.

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

Transamerica Income Edge^SM 1.2 - Automatic Step-Up

On each rider anniversary, the rider will receive an automatic step-up if the withdrawal base is set equal to the Item 2 or 3 from the Transamerica Income Edge^SM 1.2 – Withdrawal Base section above. If neither is greater than the current withdrawal base no automatic step-up will occur. If the withdrawal percentage has been established due to a previous withdrawal, the withdrawal percentage (as indicated in the Rate Sheet Prospectus Supplement) will increase if You have crossed into another age band or rider year duration prior to the automatic step-up. Please note, the increase is part of the automatic step-up and if no automatic step-up occurs then there will be no withdrawal percentage increase.

On each rider anniversary, the rider fee percentage may increase (or decrease) at the time of any automatic step-up. The rider fee percentage will not exceed the maximum fee percentage in effect when the rider was elected.

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

Transamerica Income Edge^SM 1.2 - Withdrawal Base Adjustments

Cumulative gross withdrawals up to the rider withdrawal amount in any rider year will not reduce the withdrawal base. Any amount of gross withdrawals in excess of the rider withdrawal amount in any rider year (“excess withdrawals”) will reduce the withdrawal base, however, by the greater of the dollar amount of the excess withdrawal (if the Policy Value is greater than the withdrawal base) or a pro rata amount (in proportion to the reduction in the Policy Value when the Policy Value is less than the withdrawal base), possibly to zero. If an excess withdrawal reduces the Policy Value to zero, this rider will terminate. Withdrawal base adjustments occur immediately following excess withdrawals. See “Appendix - Hypothetical Adjusted Withdrawals – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail, including an excess withdrawal that reduces the withdrawal base by a pro rata amount. The effect of an excess withdrawal is magnified if the Policy Value is less than the withdrawal base.

Please Note: You retain all responsibility for monitoring excess withdrawals. If You take regular or scheduled withdrawals please pay particular attention to any excess withdrawal because Your regular or scheduled non-excess withdrawals may thereafter become excess withdrawals that reduce or eliminate Your benefit on an accelerated basis.

Example. Assume You are the Owner and Annuitant and You make a single premium payment of $100,000 when You are 66 years old. Further assume that You do not make any withdrawals or additional premium payments, and no automatic step-ups occurred, but that after six years Your Policy Value has declined to $90,000 solely because of negative investment performance. You could receive up to $6,000 each rider year for the rest of Your life based on an assumed withdrawal percentage of 6.0% for the single life option multiplied by an assumed withdrawal base of $100,000 and assuming that:

• You take Your first withdrawal when You are age 72

• You do not withdraw more than the rider withdrawal amount in any one year, and

• there are no future automatic step-ups.

Example continued. Assume the same facts as above, but You withdraw $10,000 when You are 72 years old. That excess withdrawal decreases Your future rider withdrawal amount to $5,714.

Because the withdrawal ($10,000) is in excess of the rider withdrawal amount ($6,000) it impacts the withdrawal base on a greater than dollar-for-dollar basis.

Adjusted Withdrawal = Excess Withdrawal Amount * Withdrawal Base prior to the withdrawal / Policy Value after the Rider Withdrawal Amount but prior to the Excess Withdrawal Amount.

Excess withdrawal amount $10,000 - $6,000 = $4,000

Withdrawal base = $100,000

Policy Value after the rider withdrawal amount but prior to the excess withdrawal amount $90,000 - $6,000 = $84,000

Adjusted withdrawal = $4,000 * $100,000 / $84,000 = $4,761.90

New withdrawal base $100,000 - $4,761.90 = $95,238.10

New rider withdrawal amount $95,238.10 * 6% = $5,714.29

See the “Appendix - Hypothetical Adjusted Withdrawals - Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Riders” for examples showing the effect of hypothetical withdrawals in more detail.

Transamerica Income Edge^SM 1.2 - Required Allocations

If You elect this rider, a certain percentage of Your Policy Value on the rider date must be allocated to the Stable Account, the select investment options and the flexible investment options, in accordance with the percentages specified in the Required Allocations for Premium Payments table contained in the Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC). After the rider date, the allocation of all subsequent premium payments must also comply with the required allocations for premium payments table contained in the Rate Sheet Prospectus Supplement so long as this rider is in effect.

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In addition, if You elect this rider, any transfers to and from the select investment options and the flexible investment options must comply with the required allocation percentages for rebalancing specified in the Rate Sheet Prospectus Supplement in effect at the time You elect this rider. Any transfers to and from the select investment options and flexible investment options will be validated using the prior day’s Policy Values to ensure compliance with the required allocation percentages for rebalancing at the time of the request. Transfer requests that do not comply with the required allocation percentages for rebalancing will be deemed not in good order. Changes in Policy Values due to market movements on other dates will not be treated as a violation of the required allocations.

Transfers to and from the Stable Account (described below) are not permitted. Withdrawals from the Stable Account are not permitted until all other investment options are depleted of value. Withdrawals from the flexible investment options and select investment options will be deducted on a pro-rata basis. If You do not wish to maintain the applicable required allocation percentages, the rider must be terminated, subject to the rider termination restrictions and requirements, prior to making any transfer. The rider will terminate on the date we receive Written Notice from You requesting termination if such notice is received by us during the 30 days following the fifth rider anniversary or any fifth rider anniversary thereafter.

Enrollment in dollar cost averaging is not available while this rider is in effect.

The Stable Account. The Stable Account is a Fixed Account option under Your policy. Premium payments allocated and amounts transferred to the Stable Account become part of our general account. Interests in the general account have not been registered under the 1933 Act, nor is the general account registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are generally subject to the provisions of the 1933 or 1940 Acts. Disclosures relating to interests in the general account are, however, subject to certain generally applicable provisions of the federal securities laws relating to the accuracy of statements made in a registration statement.

Allocations applied to the Stable Account will be credited interest based on a fixed rate. The interest rates will be applied in increments of at least one year measured from each premium payment date and will automatically renew and remain in the Stable Account. The interest credited to the Stable Account will not be less than the guaranteed minimum effective annual interest rate shown on Your policy (the “guaranteed minimum”). We determine credited rates, which are guaranteed for at least one year, in our sole discretion. You bear the risk that we will not credit interest greater than the guaranteed minimum.

Withdrawals, surrenders, or transfers (upon termination) from the Stable Account will not be subject to an Excess Interest Adjustment.

Upon termination of the rider, all amounts in the Stable Account will be transferred to the money market Subaccount available under Your policy and no additional premium payments will be allowed into the Stable Account. Owners are permitted to provide instructions as to the allocation of the Stable Account proceeds contained in the money market Subaccount to one or more Subaccounts, but such instructions will not be effective prior to the Business Day after rider termination.

We guarantee that upon full surrender Your Cash Value attributable to the Fixed Account will not be less than the amount required by the applicable state nonforfeiture law at the time the policy is issued.

Select and Flexible Investment Options. As described above, if You elect this rider, You must allocate a certain percentage of Your premium payments and Policy Value to the available flexible investment options and select investment options. A complete listing of investment options designated as flexible investment options and select investment options appears in the “Appendix – Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Investment Options”. You will be notified if there are changes made to the investment options within the designated group. Requiring that You allocate a certain percentage of Your premium payments and Policy Value to the designated investment options, some of which invest in underlying funds that 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.

Rebalancing. While this rider is effective, quarterly rebalancing is required and will take place at the end of each rider quarter on the same date Your rider fee is deducted. If the day rebalancing takes place is not a Business Day, the value of the Accumulation Units redeemed or purchased due to rebalancing will be determined as of the next Business Day. We will automatically transfer amounts among Subaccounts according to the most recent rebalancing allocation instructions on file that comply with the required allocations for rebalancing. On the rider date, Your rebalancing allocation instructions will be established using a ratio of Your current investment allocation instructions for new premium payments.

You will be notified in writing that the required rebalance has been set up, and what the calculated rebalance allocation percentages are, prior to the first quarter rebalancing. You may request changes to Your rebalancing allocation instructions before the prior instructions are implemented if we receive notice of Your request in good order prior to the close of the New York Stock Exchange on the day the rebalance is processed. Your rebalancing allocation instructions will be established using a ratio of Your current investment

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allocation instruction for new premium payments. You may request changes to Your rebalancing allocation instructions while this rider remains effective as long as they comply with the required allocations for rebalancing. Rebalancing will not cease upon the request of any transfer.

See “Appendix – Guaranteed Lifetime Withdrawal Benefit -Transamerica Income Edge^SM 1.2 and Transamerica Principal Optimzer^SM Riders - Rebalancing Examples” which illustrates the initial calculation of rebalancing allocation percentage. On the rider date, Your rebalancing allocation instructions will be established using a ratio of Your current investment allocation instructions for new premium payments.

Please note:

• If You do not wish to maintain the required allocations, the rider must be terminated, subject to the rider termination restrictions and requirements, prior to making any transfer. (See, Transamerica Income Edge^SM 1.2 Rider - Termination, below.)

• We can change the list of designated flexible and select investment groups at any time. Any changes to investment allocation requirements will not affect policy Owners with an active rider.

• If an underlying fund portfolio informs us that a portfolio will be liquidated or reorganized, we can eliminate the corresponding select or flexible investment option. If this occurs, You will be required to reallocate values in the affected investment option to other flexible and select investment options in order to meet the allocation requirements. We will provide notice to You if a select or flexible investment option will be eliminated and reallocation is required. If You do not provide us with new instructions in the time specified in our notice, we will move Your money in the affected option to the money market Subaccount to the extent permitted by applicable law.

Transamerica Income Edge^SM 1.2 - Joint Life Option

If You elect the Transamerica Income Edge^SM 1.2 rider, then You can also elect to postpone termination of the rider until the later of the Annuitant’s or Annuitant’s spouse’s death (only if the Annuitant’s spouse is eligible to and elects to continue the policy, see TAX INFORMATION - Tax Status of a Nonqualified Policy - Distribution Requirements). If You elect the Joint Life option, then the withdrawal percentage used to calculate the rider withdrawal amount may be lower than under the single life option. The withdrawal percentage that is used to determine Your rider withdrawal amount will be disclosed in a Rate Sheet Prospectus Supplement included with Your prospectus. This option may not be permitted in the case of certain non-natural Owners. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

Please note: If You elect this option:

• The withdrawal percentage for each “age at the time of the first withdrawal” may be lower if You elect the joint life option.

• The rider fee may be greater if this option is elected.

• The Annuitant's spouse (or in certain instances a non-natural entity acting for the benefit of the Annuitant's spouse) must be either a joint Owner along with the Annuitant or the sole primary beneficiary (and there is no joint Owner). (Please see Spousal Continuation section for more detail regarding Annuitant's spouse).

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

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

• The rider withdrawal percentage is based on the age of the younger of the Annuitant and Annuitant’s spouse.

• The rider’s issue ages may vary if You elect this option.

Transamerica Income Edge^SM 1.2 Fees

The rider fee is deducted at the end of each successive rider quarter, on the same day of the month as the rider date. If a day does not exist in a given month, the first day of the following month will be used. If a rider fee is deducted from a Subaccount on a day which is not a Business Day, the value of Accumulation Units redeemed will be determined as of the next Business Day. The rider fee is calculated and stored at issue and at each subsequent rider quarter for the upcoming quarter. The rider fee will be adjusted for any premium additions and excess withdrawals. It will be deducted automatically from the flexible investment options and the select investment options on a pro rata basis at the end of each rider quarter. After those investment options are depleted of value, the rider fee will be deducted from the Stable Account.

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The rider fee percentage may change after the first rider anniversary due to an automatic step-up. Your rider fee may increase (or decrease) at the time of any automatic step-up. See Automatic Step-Up section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentage will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC).

In order for the fee disclosed on the applicable Rate Sheet Prospectus Supplement to apply: (1) Your application must be signed within the stated time period set forth in the applicable Rate Sheet Prospectus Supplement and (2) Your application must be received and Your policy must be funded within the stated time periods set forth in the applicable Rate Sheet Prospectus Supplement. Rider fees reflected in a Rate Sheet Prospectus Supplement with an effective period that does not include the date You signed Your application will not apply to Your policy. You should not purchase this rider without first obtaining the applicable Rate Sheet Prospectus Supplement. You can contact us at www.transamerica.com to receive a Rate Sheet Prospectus Supplement applicable to You.

On an annual basis, in general terms, the rider fee is the rider fee percentage multiplied by the withdrawal base. Specifically, the quarterly fee is calculated by multiplying (A) by (B) by (C), where:

(A)	is the withdrawal base;
(B)	is the rider fee percentage; and
(C)	is the number of days in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: Initial Premium = $100,000; Withdrawal Base = $100,000; Rider Fee percentage = 1.25%; and 91 total days in the rider quarter.

Example 1: Calculation at rider issue for first quarter rider fee. The rider fee is:

= 100,000*0.0125*(91/365)

= 1,250*(91/365)

= $311.64

A portion of the rider fee will also be assessed upon full surrender of the policy or other termination of the rider. The quarterly fee will be adjusted based on the number of days remaining until the end of the next rider quarter for the period beginning on the first day of the most recent rider quarter and ending on the date of termination.

On each rider anniversary the rider fee percentage may increase (or decrease) at the time of an automatic step-up. See Automatic Step-Up section. The rider fee percentage will not exceed the maximum fee percentage in effect when You purchased the rider. The current rider fee percentage will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are available on the EDGAR system at www.sec.gov (File Numbers 333-233837 for TLIC and 333-233841 for TFLIC). Please contact Your financial intermediary or call our Administrative Office to determine whether the Rate Sheet Prospectus Supplement has been amended. Each time an automatic step-up results in a rider fee percentage increase, You will have the option to reject the automatic step-up and reinstate the withdrawal base, withdrawal percentages and rider fee percentage to their respective amounts immediately before the automatic step-up (adjusted for any subsequent premium payments or withdrawals), provided that You do so within 30 calendar days after the rider anniversary on which the automatic step-up occurred. We must receive Your rejection, in good order, at our Administrative Office within the 30 day period after the rider anniversary on which the automatic step-up occurred.

Please note regarding the rider fee:

• Because the rider fee is a percentage of the withdrawal base, it could be a much higher percentage of Your Policy Value, particularly in the event that Your Policy Value decreases significantly.

• Because the rider fee is a percentage of the withdrawal base, the amount of the rider fee we deduct will increase if the withdrawal base increases (although the percentage(s) may remain the same).

Rider Fee Adjustment for Premium Payments and Excess Withdrawals. A rider fee adjustment will be calculated for subsequent premium payments and excess withdrawals because these events will change the withdrawal base. The rider fee adjustment may be positive or negative and will be added to or subtracted from the rider fee to be collected.

The rider fee adjustment is calculated by multiplying (A) by (B) by (C), where:

(A)	is the withdrawal base change (i.e. withdrawal base after the transaction minus the withdrawal base before the transaction);
(B)	is the rider fee percentage; and
(C)	is the number of days remaining in the rider quarter divided by the total number of days in the applicable rider year.

The following example uses these assumed values: All initial values as in Example 1; Subsequent Premium = $10,000; and 20 remaining days in the rider quarter.

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Example 2: Calculation for first quarter rider fee adjustment for a subsequent premium. The fee adjustment is:

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

= 125*(20/365)

= $6.85

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

= $6.85 + $311.64

= $318.49

The following two examples use assumed fees and values. The assumed rider year is not a leap year.

Example 3: Calculation for second quarter fee at beginning of second rider quarter assuming withdrawal base of $110,000 and a fee percentage of 1.25%.

= 110,000*0.0125*(91/365)

= 1,375*(91/365)

= $342.81

Example 4: Calculation for second quarter fee and an excess withdrawal that results in a pro-rata reduction in the withdrawal base. Assuming beginning values as in example 3, plus adjustment for gross withdrawal of $10,000 taken with 40 days remaining in the second rider quarter. Assumes withdrawal percentage of 5% and a Policy Value of $93,500 prior to the transaction and change in withdrawal base as follows:

Rider Withdrawal Amount (RWA) = Withdrawal Base * Withdrawal Percentage = $110,000 * .05 = $5,500
Excess Withdrawal = Difference between assumed withdrawal amount and RWA = $10,000 - $5,500 = $4,500
Withdrawal Base Adjustment = Maximum of Excess Withdrawal and Pro-Rata Withdrawal Amount (Excess Withdrawal * Withdrawal Base prior to withdrawal/Policy Value after RWA has been withdrawn but before excess withdrawal) = Maximum of $4,500 * $110,000/ ($93,500 - $5,500)) = Maximum of $4,500 and $5,625 = $5,625

Fee adjustment as follows:

= $-5,625 * 0.0125 * (40/365)

= $-78.75 * (40/365)

= $-7.71

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

= $342.81 - $7.71

= $335.10

The new withdrawal base = $110,000 - $5,625 = $104,375

Transamerica Income Edge^SM 1.2 - Issue Requirements

We will not issue the Transamerica Income Edge^SM 1.2 rider if:

• the Annuitant is age 86 or older (lower if required by state law); or

• the Annuitant is not also an Owner (except in the case of non-natural Owners); or

• there are more than two Owners.

Furthermore, if the joint life option is elected, we will not issue the Transamerica Income Edge^SM 1.2 Rider if:

• the Annuitant’s spouse is 86 or older (lower if required by state law); or

• the Annuitant’s spouse is not a joint Owner along with the Annuitant; or

• the Annuitant’s spouse is not the sole primary beneficiary (and there is no joint Owner).

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

Termination

The Transamerica Income Edge^SM 1.2 rider will terminate upon the earliest of the following:

• the date the policy to which this rider is attached terminates;

• the date of a change in ownership or assignment which violates the Owner and Annuitant relationship requirements as contained in the rider;

• prior to Your Policy Value reaching zero, the date on which we receive in good order, required information to process a death claim for the Annuitant (or if the joint life option is elected, the later of the Annuitant’s or Annuitant’s spouse’s death);

• on or after Your Policy Value equals zero, upon Annuitant’s death (or if the joint life option is elected, the later of the Annuitant’s or Annuitant’s spouse’s death);

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• Annuitization (however, if You have reached Your maximum Annuity Commencement Date You may choose an Annuitization option which guarantees You lifetime payments in an amount equal to Your rider withdrawal amount); or

• the date we receive Written Notice from You requesting termination if such notice is received by us during the 30 days following the fifth rider anniversary or any fifth rider anniversary thereafter.

• the date an excess withdrawal reduces Your Policy Value to zero; or

• The date we receive Written Notice from You requesting termination of the rider if such notice is received before midnight of the 30^th calendar day after You receive the rider.

Please note: This rider terminates upon Annuitization and there is a maximum Annuity Commencement Date at which time Your policy will be Annuitized according to its terms. However, if You have reached Your maximum Annuity Commencement Date, we will allow You to Annuitize Your policy and elect to receive lifetime annuity payments which are at least equal to Your rider withdrawal amount. Please contact us for more information concerning Your options.

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. Transamerica Income Edge^SM 1.2 and Transamerica Principal Optimizer^SM: Owners of the Transamerica Income Edge^SM 1.2 rider and Transamerica Principal Optimizer^SM rider, age 60 or above have the option to elect immediate investment consistent with the allocations permitted in the applicable Rate Sheet Prospectus Supplement, or, they may allocate the initial premium payment to the Stable Account as permitted in the applicable Rate Sheet Prospectus Supplement and the remaining premium to the money market portfolio for 35 calendar days (unless the owner specifies that initial premium should be allocated to the underlying Subaccount(s)) at the end of which the Policy Value is moved to the investment options of their choice consistent with the allocations permitted in the applicable Rate Sheet Prospectus Supplement. The Nursing Care and Terminal Condition and the Unemployment Waivers: are not available. Retirement Income Choice^® 1.7: The Income Enhancement^SM is not available under the Retirement Income Choice^® 1.7 rider. Ownership and Assignment: Restrictions on ownership change and assignments are not permitted.

Florida. Right to Cancel: Owners have a 21 day right to cancel period and will receive return of premium. The Unemployment Waiver is not available. Excess Interest Adjustment is not applied upon Annuitization or death. Annuity Commencement Date: The Annuity Commencement Date is not allowed until after the first Policy Year. Ownership and Assignment: The Retirement Income Max^® 1.2 rider will terminate if the policy to which this rider is attached has an ownership change or the policy is assigned. Misstatement of Age: The Transamerica Principal Optimizer^SM, Retirement Income Max^® 1.2, Transamerica Retirement Choice^® 1.7 and Transamerica Income Edge^SM 1.2 riders will not terminate due to a misstatement of age.

New York. Right to Cancel: Under the right to cancel provision the premium payment allocated to the Fixed Account, if any, plus the Policy Value in the Separate Account, if any, including any fees and charges is returned. If the policy is a replacement, the right to cancel period is extended to 60 days. Benefits and Features Not Available: Additional Death Distribution^SM rider, Additional Death Distribution+^SM rider and the Income Enhancement^SM under the Retirement Income Choice^® 1.7 rider, the Unemployment Waiver and telephone transactions are not available. Death Benefit: The death benefit payable during the accumulation phase is the greater of Policy Value or guaranteed minimum death benefit, if any. Annuitization: The Policy Value is used upon Annuitization. Annuity Commencement Date: The Annuity Commencement Date cannot be earlier than the first policy anniversary. Rider Fees: Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 rider fees cannot be deducted from the Fixed Account if available. Ownership and Assignment: Restrictions on ownership change and assignments are not permitted. Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 rider fees cannot be deducted from the Stable Account.

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

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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.

Termination for Low Value

If a withdrawal or fee (including an optional rider fee, administrative fee, or Owner transaction fee) reduces Your Cash 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 Cash 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 dated 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.

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

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

Business Continuity

Our business operations maybe adversely affected by volatile natural and man-made disasters, including (but not limited to) hurricanes, earthquakes, terrorism, civil unrest, military action, fires and explosions, pandemic diseases, and other catastrophes (“Catastrophic Events”). Over the past several years, changing weather patterns and climatic conditions have added to the unpredictability and frequency of natural disasters in certain parts of the world. Such uncertainty as to future trends and exposure may lead to financial losses to our businesses. Furthermore, Catastrophic Events may disrupt our operations and result in the loss of, or restricted access to, property and information about Transamerica and its clients. Such events may also impact the availability and capacity of our key personnel. If our business continuity plans have not included effective contingencies for Catastrophic Events, we may experience business disruption, damage to corporate reputation, and damage to financial condition for a prolonged period of time.

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.

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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, transmit and dispose of 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 data 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, unauthorized user activity 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 affiliates 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, timely response capabilities, 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, as well as certain limited cases of unauthorized internal user activity, including activity between other units of Aegon. Although to our knowledge these events have thus far not been material in nature, our management recognizes the need 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 data privacy risks.

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, our businesses are subject to laws and regulations enacted by U.S. federal and state governments, including various regulatory organizations relating to the privacy and/or security of the information of customers, employees or others. These laws, among other things, increased compliance obligations, impacted our businesses’ collection, processing and retention of personal data, reporting of data breaches, and provide for penalties for non-compliance. As an examples the New York Department of Finance Services (NYDFS), pursuant to its cybersecurity regulation, requires financial institutions regulated by the NYDFS, including certain of our entities, 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 Company affiliates operating in the U.S., including but not limited to the Gramm-Leach-Bliley Act and related state laws (GLBA), the California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA), among many others. Other legislators and regulators with jurisdiction over our businesses are considering, or have already enacted, enhanced information security risk management and privacy rules and regulations. A number of our entities and affiliates are also subject to contractual restrictions with respect to the information of our clients and business partners. The Company, and numerous of its, employees and business partners have access to, and routinely process, the personal information of consumers and employees. We rely on various processes and controls to protect the

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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 information security 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 information security obligations have been imposed by various governments with jurisdiction over the Company or its affiliates in recent years, and more such obligations are likely to be imposed in the near future across our operations. 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.

Assets in the Separate Account. You assume all of the investment risk for Your Policy Value that is allocated to the Subaccounts of the Separate Account. Your Policy Value in those Subaccounts constitutes a portion of the assets of the Separate Account. These assets are segregated and insulated from our general account, and may not be charged with liabilities arising from any other business that we may conduct.

Assets in the General Account. You also may be permitted to make allocations to Guaranteed Period Options of the Fixed Account, which are supported by the assets in our general account. Any guarantees under a policy that exceed Policy Value, such as those associated with any lifetime withdrawal benefit riders and any optional death benefits, are paid from our general account (and not the Separate Account). Therefore, any amounts that we may be obligated to pay under the policy in excess of Policy Value are subject to our financial strength and claims-paying ability and our long-term ability to make such payments. The assets of the Separate Account, however, are also available to cover the liabilities of our general account, but only to the extent that the Separate Account assets exceed the Separate Account liabilities arising under the policies supported by it.

We issue other types of insurance policies and financial products as well, and we also pay our obligations under these products from our assets in the general account.

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.

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State insurance regulators also require insurance companies to maintain a minimum amount of capital, which acts as a cushion in the event that the insurer suffers a financial impairment, based on the inherent risks in the insurer’s operations. These risks include those associated with losses that we may incur as the result of defaults on the payment of interest or principal on our general account assets, which include bonds, mortgages, general real estate investments, and stocks, as well as the loss in market value of these investments. 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 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.

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Distribution of the Policies

Distribution and Principal Underwriting Agreement. We have entered into a principal underwriting agreement with our affiliate, Transamerica Capital, Inc. (TCI), for the distribution and sale of the policies. We pay commissions to TCI which are passed through to selling firms. (See below). We also pay TCI an “override” that is a percentage of total commissions paid on sales of our policies which is not passed through to the selling firms and we may reimburse TCI for certain expenses it incurs in order to pay for the distribution of the policies. TCI may market the policies through bank affiliated firms, national brokerage firms, regional and independent broker-dealers and independent financial planners.

Compensation to Broker-Dealers Selling the Policies. The policies are offered to the public through broker-dealers (“selling firms”) that are licensed under the federal securities laws; the selling firm and/or its affiliates are also licensed under state insurance laws. The selling firms have entered into written selling agreements with us and with TCI as principal underwriter for the policies. We pay commissions through TCI to the selling firms for their sales of the policies.

The selling firms are paid commissions for the promotion and sale of the policies according to one or more schedules. The amount and timing of commissions may vary depending on the selling agreement, but the maximum commission is 5% of premium payments (additional amounts may be paid as overrides to wholesalers).

To the extent permitted by Financial Industry Regulatory Authority (FINRA) rules, the Company and TCI may pay (or allow other broker-dealers to provide) promotional incentives or payments in the form of cash or non-cash compensation or reimbursement to some, but not all, selling firms and their sales representatives. These arrangements are described further below.

The sales representative who sells You the policy typically receives a portion of the compensation we (and our affiliates) pay to the selling firms, depending on the agreement between the selling firm and its representative and the firm's internal compensation program. These programs may include other types of cash and non-cash compensation and other benefits. Ask Your sales representative for further information about the compensation Your sales representative, and the selling firm that employs Your sales representative, may receive in connection with Your purchase of a policy. Also inquire about any compensation arrangements that we and our affiliates may have with the selling firm, including the conflicts of interests that such arrangements may create.

You should be aware that a selling firm or its sales representatives may receive different compensation or incentives for selling one product over another. In some cases, these differences may create an incentive for the selling firm or its sales representatives to recommend or sell the policy to You. You may wish to take such incentives into account when considering and evaluating any recommendation relating to the policies.

Special Compensation Paid to Affiliated Firms. We and/or our affiliates provide paid-in capital to TCI and we or our affiliates may pay all or a portion of the cost of TCI's operating and other expenses, including costs for facilities, legal and accounting services, and other internal administrative functions. We and/or our affiliates also provide TCI with a percentage of total commissions paid on sales of our policies and provide TCI with capital payments that are not contingent on sales.

TCI's registered representatives and supervisors may receive non-cash compensation, such as attendance at conferences, seminars and trips (such as travel, lodging and meals in connection therewith), entertainment, merchandise and other similar items, payments, loans, loan forgiveness or loan guarantees.

Additional Compensation That We, TCI and/or Our Affiliates Pay to Selected Selling Firms. TCI, in connection with the sales of the policies, may pay certain selling firms additional cash amounts in order to receive enhanced marketing services and increased access to their sales representatives. In exchange for providing TCI with access to their distribution network, such selling firms may receive additional compensation or reimbursement for, among other things, the hiring and training of sales personnel, marketing, sponsoring of conferences, meetings, seminars, events, and/or other services they provide to us and our affiliates. To the extent permitted by applicable law, We, TCI and other parties may provide the selling firms with occasional gifts, meals, tickets or other non-cash compensation as an incentive to sell the policies. These special compensation arrangements are not offered to all selling firms and the terms of such arrangements may differ among selling firms.

As of 2019, TCI had revenue sharing agreements with more than 70 brokers and other financial intermediaries including, without limitation:

1^st Global Capital• Advisor Group, Inc.• Ameriprise Financial Services, Inc. •  Avantax Investment Services Inc.• AXA Advisors LLC •  BBVA Compass Investment Solutions, Inc. • BOSC, Inc.• Bruderman Brothers• Cadaret, Grant & Co. • Cambridge Investment Research, Inc. •  Centarus Financial, Inc. • Cetera Advisor Networks LLC • Cetera Advisors LLC• Cetera Financial Group, Inc. • Cetera Financial Specialists LLC• Cetera Investment Services LLC• CFD Investments, Inc. • Charles Schwab • Citigroup Global Markets, Inc. •  Citizens/CCO Investments •  Edward D. Jones & Co., L.P.• Envestnet Asset Management •  Financial Data Services, Inc. Citizens/CCO Investments •  First Allied Securities Inc. • FSC Securities Corporation • Geneos Wealth Management, Inc. •  GW Sherwold Associates, Inc.• Hantz Financial Services, Inc. • Huntington Investment Company • Independent Financial

94

Group, LLC • IInvestacorp, Inc. •  J.P. Morgan Securities LLC •  James T. Borello & Co, • Janney Montgomery Scott, LLC •  Kestra Investment Services • Key Investment Services, Inc. • KMS Financial Services Inc. • LPL Financial Corp. • M&T Securities, Inc. • Merrill Lynch, Pierce, Fenner & Smith Inc. • MML Investors Services • Morgan Stanley Smith Barney LLC J.P. Morgan Securities LLC • Mutual of Omaha Investor Services, Inc. • Oppenhaiemer & Co. • Park Avenue Securities•  Parkland Securities, LLC • Pershing LLC •  Raymond James and Associates, Inc. • Raymond James Financial Services, Inc. • RBC Wealth Management • Royal Alliance Associates, Inc. • SagePoint Financial, Inc. • Securian Financial Services, Inc. • Securities America, Inc. • Securities Service Network, Inc. • Sigma Financial Corporation•  SunTrust Investment Services Inc.• TD Ameritrade • The Investment Center, Inc. • Transamerica Financial Advisors, Inc. • Triad Advisors, Inc. • UBS Financial Services Inc.• United Planners Financial Services of America • US Bancorp Investments, Inc. • VOYA Financial Advisors, Inc. • Wells Fargo Advisors, LLC • Woodbury Financial Services

For the calendar year ended December 31, 2019 TCI paid approximately $34,000,000 to these brokers and other financial intermediaries in connection with revenue sharing arrangements. TCI expects to have revenue sharing arrangements with a number of brokers and other financial intermediaries in 2020, including some or all of the foregoing brokers and financial intermediaries, among others, on terms similar to those discussed above.

No specific charge is assessed directly to Owners or the Separate Account to cover commissions, non-cash compensation, and other incentives or payments described above. We do intend to recoup commissions and other sales expenses and incentives we pay, however, through fees and charges deducted under the policy and other corporate revenue.

TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION

Glossary of Terms

The Policy - General Provisions

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

95

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.  Please Note: We reserve the right to change investment choices for any optional riders subject to investment restrictions, except as otherwise provided in this prospectus.

SUBACCOUNT (1)	UNDERLYING FUND PORTFOLIO	ADVISOR/SUB-ADVISER
AB VARIABLE PRODUCTS SERIES FUND, INC.
AB Balanced Wealth Strategy Portfolio - Class B	AB Balanced Wealth Strategy Portfolio - Class B	AllianceBernstein L.P.
Investment Objective: Maximize total return consistent with the Adviser's determination of reasonable risk.
AB Growth and Income Portfolio - Class B	AB Growth and Income Portfolio - Class B	AllianceBernstein L.P.
Investment Objective: Long-term growth of capital.
AMERICAN FUNDS INSURANCE SERIES® TRUST
American Funds - Asset Allocation Fund Class 4	American Funds - Asset Allocation Fund Class 4	Capital Research and Management CompanySM
Investment Objective: High total return (including income and capital gains) consistent with preservation of capital over the long term.
American Funds - Bond Fund - Class 4	American Funds - Bond Fund - Class 4	Capital Research and Management CompanySM
Investment Objective: To provide as high a level of current income as is consistent with the preservation of capital.
American Funds - Growth Fund - Class 4	American Funds - Growth Fund - Class 4	Capital Research and Management CompanySM
Investment Objective: To provide growth of capital.
American Funds - Growth-Income Fund - Class 4	American Funds - Growth-Income Fund - Class 4	Capital Research and Management CompanySM
Investment Objective: To achieve long-term growth of capital and income.
American Funds - International Fund - Class 4	American Funds - International Fund - Class 4	Capital Research and Management CompanySM
Investment Objective: To achieve long-term growth of capital.
American Funds - New World Fund® - Class 4	American Funds - New World Fund® - Class 4	Capital Research and Management CompanySM
Investment Objective: The fund’s objective is long-term capital appreciation.
DFA INVESTMENT DIMENSIONS GROUP INC.
DFA VA Global Bond Portfolio - Institutional Class	DFA VA Global Bond Portfolio - Institutional Class	Dimensional Fund Advisors LP
Investment Objective: To provide a market rate of return for a fixed income portfolio with low relative volatility of returns.
FIDELITY ® VARIABLE INSURANCE PRODUCTS FUND
Fidelity ® VIP Balanced Portfolio - Service Class 2	Fidelity ® VIP Balanced Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Seeks income and capital growth consistent with reasonable risk.
Fidelity ® VIP Consumer Staples - Initial Class	Fidelity ® VIP Consumer Staples - Initial Class	Fidelity Management & Research Company
Investment Objective: Capital appreciation
Fidelity ® VIP Contrafund® Portfolio - Service Class 2	Fidelity ® VIP Contrafund® Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Long-term capital appreciation.
Fidelity ® VIP Energy Portfolio - Service Class 2	Fidelity ® VIP Energy Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Capital appreciation.
Fidelity ® VIP Health Care Portfolio - Service Class 2	Fidelity ® VIP Health Care Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Capital appreciation.
Fidelity ® VIP Mid Cap Portfolio - Service Class 2	Fidelity ® VIP Mid Cap Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Long-term growth of capital.
Fidelity ® VIP Technology Portfolio - Initial Class	Fidelity ® VIP Technology Portfolio - Initial Class	Fidelity Management & Research Company
Investment Objective: Capital appreciation.
Fidelity ® VIP Utilities Portfolio - Initial Class	Fidelity ® VIP Utilities Portfolio - Initial Class	Fidelity Management & Research Company
Investment Objective: Capital appreciation.
Fidelity ® VIP Value Strategies Portfolio - Service Class 2	Fidelity ® VIP Value Strategies Portfolio - Service Class 2	Fidelity Management & Research Company
Investment Objective: Capital appreciation
STATE STREET VARIABLE INSURANCE SERIES FUNDS, INC.
State Street Total Return V.I.S. Fund - Class 3	State Street Total Return V.I.S. Fund - Class 3	SSGA Funds Management, Inc.
Investment Objective: Highest total return, composed of current income and capital appreciation, as is consistent with prudent investment risk.
TRANSAMERICA SERIES TRUST*

96

UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS — (Continued)

SUBACCOUNT (1)	UNDERLYING FUND PORTFOLIO	ADVISOR/SUB-ADVISER
TA 60/40 Allocation - Service Class	Transamerica 60/40 Allocation VP - Service Class	Transamerica Asset Management, Inc.
Investment Objective: Seeks long-term capital appreciation and current income.
TA Aegon High Yield Bond - Service Class	Transamerica Aegon High Yield Bond VP - Service Class	Aegon USA Investment Management, LLC
Investment Objective: Seeks a high level of current income by investing in high-yield debt securities.
TA Aegon U.S. Government Securities - Service Class	Transamerica Aegon U.S. Government Securities VP - Service Class	Aegon USA Investment Management, LLC
Investment Objective: Seeks to provide as high level of total return as is consistent with prudent investment strategies.
TA American Funds Managed Risk - Balanced - Service Class	Transamerica American Funds Managed Risk VP - Service Class	Milliman Financial Risk Management LLC
Investment Objective: Seeks to provide total return (including income and capital gains) consistent with preservation of capital over the long term while seeking to manage volatility and provide downside protection.
TA Barrow Hanley Dividend Focused - Service Class	Transamerica Barrow Hanley Dividend Focused VP - Service Class	Barrow, Hanley, Mewhinney, & Strauss, LLC
Investment Objective: Seeks total return gained from the combination of dividend yield, growth of dividends and capital appreciation.
TA BlackRock Global Real Estate Securities - Service Class	Transamerica BlackRock Global Real Estate Securities VP - Service Class	CBRE Clarion Securities, LLC
Investment Objective: Seeks long-term total return from investments primarily in equity securities of real estate companies. Total return consists of realized and unrealized capital gains and losses plus income.
TA BlackRock Government Money Market - Service Class(2)	Transamerica BlackRock Government Money Market VP - Service Class(2)	Aegon USA Investment Management, LLC
Investment Objective: Seeks as high a level of current income as is consistent with preservation of capital and liquidity.
TA BlackRock iShares Edge 40- Service Class	Transamerica BlackRock iShares Edge 40 VP - Service Class	Alliance Bernstein L.P.
Investment Objective: Seeks capital appreciation and current income.
TA BlackRock iShares Edge 50 - Service Class	Transamerica BlackRock iShares Edge 50 VP - Service Class	BlackRock Investment Management, LLC
Investment Objective: Seeks long-term capital appreciation and capital preservation.
TA BlackRock iShares Edge 75 - Service Class	Transamerica BlackRock iShares Edge 75 VP - Service Class	BlackRock Investment Management, LLC
Investment Objective: Seeks long-term capital appreciation with capital preservation as a secondary objective.
TA BlackRock iShares Edge 100 - Service Class	Transamerica BlackRock iShares Edge 100 VP - Service Class	BlackRock Investment Management, LLC
Investment Objective: Seeks long-term capital appreciation.
TA BlackRock Tactical Allocation - Service Class	Transamerica BlackRock Tactical Allocation VP - Service Class	BlackRock Investment Management, LLC
Investment Objective: Seeks capital appreciation with current income as secondary objective.
TA Goldman Sachs 70/30 - Service Class	Transamerica Goldman Sach 70/30 Portfolio VP - Service Class	Goldman Sachs Asset Management, L.P.
Investment Objective: Seeks long-term capital appreciation with current income as a secondary objective.
TA International Growth - Service Class	Transamerica International Growth VP - Service Class	TDAM USA Inc.
Investment Objective: Seeks capital growth.
TA Janus Balanced - Service Class	Transamerica Janus Balanced VP - Service Class	Janus Capital Management LLC
Investment Objective: Seeks long-term capital growth, consistent with the preservation of capital and balanced by current income.
TA Janus Mid-Cap Growth - Service Class	Transamerica Janus Mid-Cap Growth VP - Service Class	Janus Capital Management LLC
Investment Objective: Seeks long-term capital appreciation.
TA JPMorgan Asset Allocation - Conservative - Service Class	Transamerica JPMorgan Asset Allocation - Conservative VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks current income and preservation of capital.
TA JPMorgan Asset Allocation - Growth - Service Class	Transamerica JPMorgan Asset Allocation - Growth VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks long-term capital appreciation.
TA JPMorgan Asset Allocation - Moderate - Service Class	Transamerica JPMorgan Asset Allocation - Moderate VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks capital appreciation and current income.

97

UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS — (Continued)

SUBACCOUNT (1)	UNDERLYING FUND PORTFOLIO	ADVISOR/SUB-ADVISER
TA JPMorgan Asset Allocation - Moderate Growth - Service Class	Transamerica JPMorgan Asset Allocation - Moderate Growth VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks capital appreciation with current income as a secondary objective.
TA JPMorgan Core Bond - Service Class	Transamerica JPMorgan Core Bond VP - Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks total return, consisting of current income and capital appreciation.
TA JPMorgan Enhanced Index - Service Class	Transamerica JPMorgan Enhanced Index VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks to earn a total return modestly in excess of the total return performance of the S&P 500® (including the reinvestment of dividends) while maintaining a volatility of return similar to the S&P 500®.
TA JPMorgan International Moderate Growth - Service Class	Transamerica JPMorgan International Moderate Growth VP – Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks capital appreciation with current income as a secondary objective.
TA JPMorgan Mid Cap Value - Service Class	Transamerica JPMorgan Mid Cap Value VP–Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks growth from capital appreciation.
TA JPMorgan Tactical Allocation - Service Class	Transamerica JPMorgan Tactical Allocation VP - Service Class	J.P. Morgan Investment Management Inc.
Investment Objective: Seeks current income and preservation of capital.
TA Legg Mason Dynamic Allocation - Balanced - Service Class	Transamerica Legg Mason Dynamic Allocation - Balanced VP - Service Class	QS Investors, LLC
Investment Objective: Seeks capital appreciation and income.
TA Legg Mason Dynamic Allocation - Growth - Service Class	Transamerica Legg Mason Dynamic Allocation - Growth VP - Service Class	QS Investors, LLC
Investment Objective: Seeks capital appreciation and income.
TA Levin Large Cap Value - Service Class	Transamerica Levin Large Cap Value VP - Service Class	Transamerica Asset Management, Inc. & Levin Capital Strategies, L.P.
Investment Objective: Seeks long-term capital appreciation.
TA Madison Diversified Income - Service Class	Transamerica Madison Diversified Income VP - Service Class	Madison Asset Management. LLC
Investment Objective: Seeks high total return through the combination of income and capital appreciation.
TA Managed Risk - Balanced ETF - Service Class	Transamerica Managed Risk - Balanced ETF VP - Service Class	Milliman Financial Risk Management LLC
Investment Objective: Seeks to balance capital appreciation and income.
TA Managed Risk - Conservative ETF - Service Class	Transamerica Managed Risk - Conservative ETF VP - Service Class	Milliman Financial Risk Management LLC
Investment Objective: Seeks current income and preservation of capital.
TA Managed Risk - Growth ETF - Service Class	Transamerica Managed Risk - Growth ETF VP - Service Class	Milliman Financial Risk Management LLC
Investment Objective: Seeks capital appreciation as a primary objective and income as a secondary objective.
TA Market Participation Strategy - Service Class	Transamerica Market Participation Strategy VP - Service Class	Quantitative Management Associates LLC
Investment Objective: Seeks capital appreciation.
TA Morgan Stanley Capital Growth - Service Class	Transamerica Morgan Stanley Capital Growth VP – Service Class	Morgan Stanley Investment Management Inc.
Investment Objective: Seeks to maximize long-term growth.
TA Morgan Stanley Global Allocation - Service Class	Transamerica Morgan Stanley Global Allocation VP - Service Class	Morgan Stanley Investment Management Inc.
Investment Objective: Seeks high total investment return. Total investment return is the combination of capital appreciation and investment income.
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class	Transamerica Morgan Stanley Global Allocation Managed Risk - Balanced VP - Service Class	Milliman Financial Risk Management LLC
Investment Objective: Seeks to provide capital appreciation and income while seeking to manage volatility.
TA MSCI EAFE Index - Service Class	Transamerica MSCI EAFE Index VP - Service Class	SSGA Funds Management, Inc.
Investment Objective: Seeks to track the investment results of an index composed of large- and mid-capitalization developed market equities, excluding the U.S. and Canada.
TA Multi-Managed Balanced - Service Class	Transamerica Multi-Managed Balanced VP – Service Class	J.P. Morgan Investment Management Inc. and Aegon USA Investment Management, LLC
Investment Objective: Seeks to provide a high total investment return through investments in a broadly diversified portfolio of stock, bonds and money market instruments.

98

UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS — (Continued)

SUBACCOUNT (1)	UNDERLYING FUND PORTFOLIO	ADVISOR/SUB-ADVISER
TA PIMCO Tactical - Balanced - Service Class	Transamerica PIMCO Tactical–Balanced VP–Service Class	Pacific Investment Management Company LLC
Investment Objective: Seeks combination of capital appreciation and income.
TA PIMCO Tactical - Conservative - Service Class	Transamerica PIMCO Tactical–Conservative VP–Service Class	Pacific Investment Management Company LLC
Investment Objective: Seeks combination of capital appreciation and income.
TA PIMCO Tactical - Growth - Service Class	Transamerica PIMCO Tactical–Growth VP–Service Class	Pacific Investment Management Company LLC
Investment Objective: Seeks combination of capital appreciation and income.
TA PIMCO Total Return - Service Class	Transamerica PIMCO Total Return VP – Service Class	Pacific Investment Management Company LLC
Investment Objective: Seeks maximum total return consistent with preservation of capital and prudent investment management.
TA PineBridge Inflation Opportunities - Service Class	Transamerica PineBridge Inflation Opportunities VP - Service Class	PineBridge Investments LLC
Investment Objective: Seeks maximum real return, consistent with appreciation of capital.
TA QS Investors Active Asset Allocation - Conservative - Service Class	Transamerica QS Investors Active Asset Allocation - Conservative VP - Service Class	QS Investors, LLC
Investment Objective: Seeks current income and preservation of capital.
TA QS Investors Active Asset Allocation - Moderate - Service Class	Transamerica QS Investors Active Asset Allocation - Moderate VP - Service Class	QS Investors, LLC
Investment Objective: Seeks capital appreciation and current income.
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class	Transamerica QS Investors Active Asset Allocation - Moderate Growth VP - Service Class	QS Investors, LLC
Investment Objective: Seeks capital appreciation with current income as secondary objective.
TA S&P 500 Index - Service Class	Transamerica S&P 500 Index VP - Service Class	SSGA Funds Management, Inc.
Investment Objective: Seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index.
TA Small Mid Cap Value - Service Class	Transamerica Small/Mid Cap Value VP – Service Class	Systematic Financial Management L.P. & Thompson, Siegel & Walmsley LLC
Investment Objective: Seeks to maximize total return.
TA T. Rowe Price Small Cap - Service Class	Transamerica T. Rowe Price Small Cap VP – Service Class	T. Rowe Price Associates, Inc.
Investment Objective: Seeks long-term growth of capital by investing primarily in common stocks of small growth companies.
TA TS&W International Equity - Service Class	Transamerica TS&W International Equity VP – Service Class	Thompson, Siegel & Walmsley LLC
Investment Objective: Seeks maximum long-term total return, consistent with reasonable risk to principal, by investing in a diversified portfolio of common stocks of primarily non-U.S. issuers.
TA WMC US Growth - Service Class	Transamerica WMC US Growth VP – Service Class	Wellington Management Company, LLP
Investment Objective: Seeks to maximize long-term growth.
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 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 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.

(1)	Some Subaccounts may be available for certain policies and may not be available for all policies. You should work with Your registered representative to decide which Subaccount(s) may be appropriate for You based on a thorough analysis of Your particular insurance needs, financial objective, investment goals, time horizons, and risk tolerance.
(2)	There can be no assurance that 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.

99

UNDERLYING FUND PORTFOLIOS ASSOCIATED WITH THE SUBACCOUNTS — (Continued)

* 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.

100

APPENDIX

Designated Investment Options

The table below identifies the Designated Investment Options available for use with the Guaranteed Minimum Death Benefits and our Guaranteed Lifetime Withdrawal Benefits except for the Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders.  See Appendix - Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 Investment Options.

	Return of Premium Death Benefit	Annual Step-Up Death Benefit	Retirement Income Max® 1.2 Rider	Retirement Income Choice® 1.7 Rider
Subaccounts				Group A, B or C
AB Balanced Wealth Strategy Portfolio - Class B	√	√		A
AB Growth and Income Portfolio - Class B	√	√		A
American Funds - Asset Allocation Fund Class 4	√	√		A
American Funds - Bond Fund - Class 4	√	√	√	A
American Funds - Growth Fund - Class 4	√	√		A
American Funds - Growth-Income Fund - Class 4	√	√		A
American Funds - International Fund - Class 4	√	√		A
American Funds - New World Fund® - Class 4	√	√		A
DFA VA Global Bond Portfolio - Institutional Class	√	√	√	A
Fidelity ® VIP Balanced Portfolio - Service Class 2	√	√		A
Fidelity ® VIP Consumer Staples - Initial Class	√	√		A
Fidelity ® VIP Contrafund® Portfolio - Service Class 2	√	√		A
Fidelity ® VIP Energy Portfolio - Service Class 2	√	√		A
Fidelity ® VIP Health Care Portfolio - Service Class 2	√	√		A
Fidelity ® VIP Mid Cap Portfolio - Service Class 2	√	√		A
Fidelity ® VIP Technology Portfolio - Initial Class	√	√		A
Fidelity ® VIP Utilities Portfolio - Initial Class	√	√		A
Fidelity ® VIP Value Strategies Portfolio - Service Class 2	√	√		A
State Street Total Return V.I.S. Fund - Class 3	√	√		A
TA 60/40 Allocation - Service Class	√	√		A
TA Aegon High Yield Bond - Service Class	√	√		A
TA Aegon U.S. Government Securities - Service Class	√	√	√	A
TA American Funds Managed Risk - Balanced - Service Class(1)	√	√		A
TA Barrow Hanley Dividend Focused - Service Class	√	√		A
TA BlackRock Global Real Estate Securities - Service Class	√	√		A
TA BlackRock Government Money Market - Service Class	√	√	√	A
TA BlackRock iShares Edge 40- Service Class	√	√	√	A
TA BlackRock iShares Edge 50 - Service Class	√	√	√	A
TA BlackRock iShares Edge 75 - Service Class	√	√		A
TA BlackRock iShares Edge 100 - Service Class	√	√		A
TA BlackRock Tactical Allocation - Service Class(1)	√	√		A
TA Goldman Sachs 70/30 - Service Class	√	√		A
TA International Growth - Service Class	√	√		A
TA Janus Balanced - Service Class	√	√		A

101

Designated Investment Options — (Continued)

	Return of Premium Death Benefit	Annual Step-Up Death Benefit	Retirement Income Max® 1.2 Rider	Retirement Income Choice® 1.7 Rider
Subaccounts				Group A, B or C
TA Janus Mid-Cap Growth - Service Class	√	√		A
TA JPMorgan Asset Allocation - Conservative - Service Class(1)	√	√	√	A
TA JPMorgan Asset Allocation - Growth - Service Class	√	√		A
TA JPMorgan Asset Allocation - Moderate - Service Class(1)	√	√	√	A
TA JPMorgan Asset Allocation - Moderate Growth - Service Class(1)	√	√		A
TA JPMorgan Core Bond - Service Class	√	√	√	A
TA JPMorgan Enhanced Index - Service Class	√	√		A
TA JPMorgan International Moderate Growth - Service Class(1)	√	√		A
TA JPMorgan Mid Cap Value - Service Class	√	√		A
TA JPMorgan Tactical Allocation - Service Class	√	√	√	A
TA Legg Mason Dynamic Allocation - Balanced - Service Class(1)	√	√	√	A
TA Legg Mason Dynamic Allocation - Growth - Service Class(1)	√	√		A
TA Levin Large Cap Value - Service Class	√	√		A
TA Madison Diversified Income - Service Class	√	√	√	A
TA Managed Risk - Balanced ETF - Service Class(1)	√	√	√	A
TA Managed Risk - Conservative ETF - Service Class(1)	√	√	√	A
TA Managed Risk - Growth ETF - Service Class(1)	√	√		A
TA Market Participation Strategy - Service Class(1)	√	√		A
TA Morgan Stanley Capital Growth - Service Class	√	√		A
TA Morgan Stanley Global Allocation - Service Class	√	√		A
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class(1)	√	√		A
TA MSCI EAFE Index - Service Class	√	√		A
TA Multi-Managed Balanced - Service Class	√	√		A
TA PIMCO Tactical - Balanced - Service Class(1)	√	√		A
TA PIMCO Tactical - Conservative - Service Class(1)	√	√		A
TA PIMCO Tactical - Growth - Service Class(1)	√	√		A
TA PIMCO Total Return - Service Class	√	√	√	A
TA PineBridge Inflation Opportunities - Service Class	√	√	√	A
TA QS Investors Active Asset Allocation - Conservative - Service Class(1)	√	√	√	A
TA QS Investors Active Asset Allocation - Moderate - Service Class(1)	√	√	√	A
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class(1)	√	√		A
TA S&P 500 Index - Service Class	√	√		A
TA Small Mid Cap Value - Service Class	√	√		A
TA T. Rowe Price Small Cap - Service Class	√	√		A
TA TS&W International Equity - Service Class	√	√		A
TA WMC US Growth - Service Class	√	√		A
Vanguard VIF Balanced Portfolio	√	√		A
Vanguard VIF Conservative Allocation Portfolio	√	√	√	A
Vanguard VIF Mid-Cap Index Portfolio	√	√		A

102

Designated Investment Options — (Continued)

	Return of Premium Death Benefit	Annual Step-Up Death Benefit	Retirement Income Max® 1.2 Rider	Retirement Income Choice® 1.7 Rider
Subaccounts				Group A, B or C
Vanguard VIF Moderate Allocation Portfolio	√	√		A
Fixed Account	√	√	√	A

⁽¹⁾This Subaccount invests in an underlying fund portfolio that utilized a volatility management strategy as part of its investment objective and/or principal investment strategy. See “Investment Restrictions” earlier in the prospectus for information on how volatility management strategies may impact Your Policy Value in certain optional riders.

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.

103

APPENDIX

TRANSAMERICA PRINCIPAL Optimizer^SM AND TRANSAMERICA INCOME EDGE^SM 1.2 Investment Options

The table below identifies the Select Investment Options and Flexible Investment Options available for use with the Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders.

	Select Investment Options	Flexible Investment Options
Subaccounts
AB Balanced Wealth Strategy Portfolio - Class B		√
AB Growth and Income Portfolio - Class B		√
American Funds - Asset Allocation Fund Class 4		√
American Funds - Bond Fund - Class 4	√
American Funds - Growth Fund - Class 4		√
American Funds - Growth-Income Fund - Class 4		√
American Funds - International Fund - Class 4		√
American Funds - New World Fund® - Class 4		√
DFA VA Global Bond Portfolio - Institutional Class	√
Fidelity ® VIP Balanced Portfolio - Service Class 2		√
Fidelity ® VIP Consumer Staples - Initial Class		√
Fidelity ® VIP Contrafund® Portfolio - Service Class 2		√
Fidelity ® VIP Energy Portfolio - Service Class 2		√
Fidelity ® VIP Health Care Portfolio - Service Class 2		√
Fidelity ® VIP Mid Cap Portfolio - Service Class 2		√
Fidelity ® VIP Technology Portfolio - Initial Class		√
Fidelity ® VIP Utilities Portfolio - Initial Class		√
Fidelity ® VIP Value Strategies Portfolio - Service Class 2		√
State Street Total Return V.I.S. Fund - Class 3		√
TA 60/40 Allocation - Service Class		√
TA Aegon High Yield Bond - Service Class		√
TA Aegon U.S. Government Securities - Service Class	√
TA American Funds Managed Risk - Balanced - Service Class(1)		√
TA Barrow Hanley Dividend Focused - Service Class		√
TA BlackRock Global Real Estate Securities - Service Class		√
TA BlackRock Government Money Market - Service Class	√
TA BlackRock iShares Edge 40- Service Class		√
TA BlackRock iShares Edge 50 - Service Class		√
TA BlackRock iShares Edge 75 - Service Class		√
TA BlackRock iShares Edge 100 - Service Class		√
TA BlackRock Tactical Allocation - Service Class(1)		√
TA Goldman Sachs 70/30 - Service Class		√
TA International Growth - Service Class		√
TA Janus Balanced - Service Class		√
TA Janus Mid-Cap Growth - Service Class		√

104

TRANSAMERICA PRINCIPAL Optimizer^SM AND TRANSAMERICA INCOME EDGE^SM 1.2 Investment Options — (Continued)

	Select Investment Options	Flexible Investment Options
Subaccounts
TA JPMorgan Asset Allocation - Conservative - Service Class(1)		√
TA JPMorgan Asset Allocation - Growth - Service Class		√
TA JPMorgan Asset Allocation - Moderate - Service Class(1)		√
TA JPMorgan Asset Allocation - Moderate Growth - Service Class(1)		√
TA JPMorgan Core Bond - Service Class	√
TA JPMorgan Enhanced Index - Service Class		√
TA JPMorgan International Moderate Growth - Service Class(1)		√
TA JPMorgan Mid Cap Value - Service Class		√
TA JPMorgan Tactical Allocation - Service Class		√
TA Legg Mason Dynamic Allocation - Balanced - Service Class(1)		√
TA Legg Mason Dynamic Allocation - Growth - Service Class(1)		√
TA Levin Large Cap Value - Service Class		√
TA Madison Diversified Income - Service Class		√
TA Managed Risk - Balanced ETF - Service Class(1)		√
TA Managed Risk - Conservative ETF - Service Class(1)		√
TA Managed Risk - Growth ETF - Service Class(1)		√
TA Market Participation Strategy - Service Class(1)		√
TA Morgan Stanley Capital Growth - Service Class		√
TA Morgan Stanley Global Allocation - Service Class		√
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class(1)		√
TA MSCI EAFE Index - Service Class		√
TA Multi-Managed Balanced - Service Class		√
TA PIMCO Tactical - Balanced - Service Class(1)		√
TA PIMCO Tactical - Conservative - Service Class(1)		√
TA PIMCO Tactical - Growth - Service Class(1)		√
TA PIMCO Total Return - Service Class	√
TA PineBridge Inflation Opportunities - Service Class	√
TA QS Investors Active Asset Allocation - Conservative - Service Class(1)		√
TA QS Investors Active Asset Allocation - Moderate - Service Class(1)		√
TA QS Investors Active Asset Allocation - Moderate Growth - Service Class(1)		√
TA S&P 500 Index - Service Class		√
TA Small Mid Cap Value - Service Class		√
TA T. Rowe Price Small Cap - Service Class		√
TA TS&W International Equity - Service Class		√
TA WMC US Growth - Service Class		√
Vanguard VIF Balanced Portfolio		√
Vanguard VIF Conservative Allocation Portfolio		√
Vanguard VIF Mid-Cap Index Portfolio		√
Vanguard VIF Moderate Allocation Portfolio		√

⁽¹⁾  This Subaccount invests in an underlying fund portfolio that utilized a volatility management strategy as part of its investment objective and/or

105

TRANSAMERICA PRINCIPAL Optimizer^SM AND TRANSAMERICA INCOME EDGE^SM 1.2 Investment

Options —  (Continued)

principal investment strategy. See “Investment Restrictions” earlier in the prospectus for information on how volatility management strategies may impact Your Policy Value in certain optional riders.

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.

106

APPENDIX

static allocations

The following are Static Allocations available as investment options as of May 1, 2020.

American Funds Static Allocation:	Allocation %
American Funds - Asset Allocation Fund	37.5%
American Funds - Bond Fund	50.0%
American Funds - Growth Fund	7.5%
American Funds - International Fund	5.0%

Transamerica Static Allocation – Active:	Allocation %
TA Aegon High Yield Bond	5.0%
TA Greystone International Growth	3.0%
TA JPMorgan Core Bond	65.0%
TA Levin Large Cap Value	16.0%
TA T.Rowe Price Small Cap	3.0%
TA WMC US Growth	8.0%

Transamerica Static Allocation – Passive:	Allocation %
TA International Equity Index	4.0%
TA JPMorgan Core Bond	65.0%
TA U.S. Equity Index	31.0%

107

APPENDIX

CONDENSED FINANCIAL INFORMATION

Because the Subaccounts in the policy offered under this Transamerica Axiom^SM III Variable Annuity prospectus had not yet been sold or commenced operations as of December 31, 2019, no class of Accumulation Units have yet been derived. Accordingly, no condensed financial information is available as of the date of this Transamerica Axiom^SM III Variable Annuity prospectus.

108

APPENDIX

Excess Interest Adjustment Examples

Surrenders, withdrawals, transfers, death benefits and amounts applied to an annuity option, from a guaranteed period option of the Fixed Account before the end of its guaranteed period (the number of years You specified the money would remain in the guaranteed period option) may be subject to an Excess Interest Adjustment (“EIA”). If, at the time of such transactions the guaranteed interest rate set by us for the applicable period has risen since the date of the initial guarantee, the Excess Interest Adjustment will result in a lower Cash Value. However, if the guaranteed interest rate set by us for the applicable period has fallen since the date of the initial guarantee, the Excess Interest Adjustment will result in a higher Cash Value.

Excess Interest Adjustments will not reduce the Adjusted Policy Value for a guaranteed period option below the premium payments and transfers to that guaranteed period option, less any prior withdrawals and transfers from the guaranteed period option, plus interest at the policy's minimum guaranteed effective annual interest rate. This is referred to as the Excess Interest Adjustment floor.

The formula that will be used to determine the Excess Interest Adjustment is:

S* (G-C)* (M/12)
S	=	Is the amount (before surrender charges, premium taxes and the application of any Guaranteed Minimum Death Benefits, if any) being surrendered, withdrawn, transferred, paid upon death, or applied to an income option that is subject to the Excess Interest Adjustment.
G	=	Is the guaranteed interest rate for the guaranteed period applicable to “S”;
C	=	Is the current guaranteed interest rate then being offered on new premium payments for the next longer option period than “M”. If this policy form or such an option period is no longer offered, “C” will be the U.S. Treasury rate for the next longer maturity (in whole years) than “M” on the 25th day of the previous calendar month; and
M	=	Number of months remaining in the current option period for “S”, rounded up to the next higher whole number of months.
*	=	Multiplication

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

109

Excess Interest Adjustment Examples — (Continued)

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

Assumptions:

Single premium payment = $50,000

Guarantee period = 5 Years

Guarantee rate = 5.5% per annum

Current Rate = 8.5% per annum

Guaranteed minimum interest rate = 1.50%

Surrender in the middle of Policy Year 2

Summary:
Policy Value at middle of Policy Year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment	= 4,181.21
Amount subject to Excess Interest Adjustment	= 54,181.21 – 4,181.21 = 50,000.00
Excess Interest Adjustment floor	= 50,000.00 * (1.015) ^ 1.5 = 51,129.21
Excess Interest Adjustment S*(G-C)*(M/12) where:	G = .055 C = .085 M = 42 = 50,000.00 * (0.055 * 0.085) * (42/12)
	= -5,250.00, but Excess Interest Adjustment cannot cause the adjusted Policy Value to fall below the Excess Interest Adjustment floor, so the adjustment is limited to 51,129.21 - 54,181.21 = -3,052.00
Adjusted Policy Value = Policy Value + Excess Interest Adjustment	= 54,181.21 + (-3,052.00) = 51,129.21

Upon full surrender of the policy, the net surrender value (Adjusted Policy Value less any surrender charge) will never be less than that required by the non-forfeiture laws of your state.

Example 2 (Full Surrender, rates decrease by 1%):

Assumptions:

Single premium payment = $50,000

Guarantee period = 5 Years

Guarantee rate = 5.5% per annum

Current Rate = 4.5% per annum

Guaranteed minimum interest rate = 1.50%

Surrender in the middle of Policy Year 2

Summary:
Policy Value at middle of Policy Year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment	= 4,181.21
Amount subject to Excess Interest Adjustment	= 54,181.21 – 4,181.21 = 50,000.00
Excess Interest Adjustment floor	= 50,000.00 * (1.015) ^ 1.5 = 51,129.21
Excess Interest Adjustment S* (G-C)* (M/12) where:	G = .055 C = .045 M = 42 = 50,000.00 * (.055-.045) * (42/12) = 1,750.00
Adjusted Policy Value	= 54,181.21 + 1,750.00 = 55,931.21

Upon full surrender of the policy, the net surrender value will never by less than that required by the non-forfeiture laws of Your state. For the purpose of these illustrations no surrender charges are assumed.

110

Excess Interest Adjustment Examples — (Continued)

On a withdrawal, we will pay the policyholder the full amount of withdrawal requested (as long as the Policy Value is sufficient). Amounts withdrawn will reduce the Policy Value by an amount equal to:

R - E + SC
R	=	the requested withdrawal;
E	=	the Excess Interest Adjustment; and
SC	=	the surrender charges on (EPW - E): where
EPW	=	the excess partial withdrawal amount.

Example 3 (Withdrawal, rates increase by 1%):

Assumptions:

Single premium payment = $50,000

Guarantee period = 5 Years

Guarantee rate = 5.5% per annum

Current rate = 6.5% per annum

Withdrawal of $20,000 in the middle of Policy Year 2

Summary:
Policy Value at middle of Policy Year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment	= 4,181.21
Excess Interest Adjustment S*(G-C)*(M/12) where:	S = 20,000 – 4,181.21 = 15,818.79 G = .055 C = .065 M = 42 = 15,818.79 * (.055 - .065) * (42/12) = -553.66
Remaining Policy Value at middle of Policy Year 2	= 54,181.21 - (R - E + surrender charge) = 54,181.21 - (20,000.00 - (-553.66) + 0.00) = 33,627.55

Example 4 (Partial Withdrawal, rates decrease by 1%):

Assumptions:

Single premium payment = $50,000

Guarantee period = 5 Years

Guarantee rate = 5.5% per annum

Current rate = 4.5% per annum

Partial Withdrawal of $20,000 in the middle of Policy Year 2

Summary:
Policy Value at middle of Policy Year 2	= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings	= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment	= 4,181.21
Excess Interest Adjustment S*(G-C)*(M/12) where:	S = 20,000 – 4,181.21 = 15,818.79 G = .055 C = .045 M = 42 = 15,818.79 * (.055 - .045)* (42/12) = 553.66
Remaining Policy Value at middle of Policy Year 2	= 54,181.21 - (R - E + surrender charge) = 54,181.21 - (20,000.00 – 553.66 + 0.00) = 34,734.87

111

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 gross withdrawal multiplied by the Death Proceeds immediately prior to the withdrawal divided by the Policy Value immediately prior to the withdrawal. The formula is AW = GW x (DP/PV) where:

AW = adjusted withdrawal

GW= gross withdrawal

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

PV = Policy Value prior to the withdrawal

GMDB = guaranteed minimum death benefit prior to the withdrawal

CV = Cash Value prior to the withdrawal

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

Example 1: Death Proceeds Greater than Policy Value

Assumptions:

GMDB = $75,000

PV = $50,000

DP = $75,000

GW = $15,494

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

Summary:
Reduction in guaranteed minimum death benefit	=$23,241
Reduction in Policy Value	=$15,494
New guaranteed minimum death benefit 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

GW = $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.

112

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	Policy Value (Annual Step-up GMDB Elected)	Annual Step-Up GMDB
Issue	N/A	$100,000	$100,000	$100,000	$100,000	$100,000
1	-4%	$ 94,850	$ 94,700	$100,000	$ 94,500	$100,000
2	18%	$110,832	$110,515	$100,000	$110,093	$110,093
3	15%	$126,182	$125,655	$100,000	$124,955	$124,955
4	-7%	$115,899	$115,226	$100,000	$114,334	$124,955
5	2%	$116,884	$116,033	$100,000	$114,905	$124,955
6	10%	$127,228	$126,127	$100,000	$124,672	$124,955
7	14%	$143,577	$142,146	$100,000	$140,257	$140,257
8	-3%	$137,618	$136,033	$100,000	$133,945	$140,257
9	17%	$159,431	$157,391	$100,000	$154,706	$154,706
10	6%	$167,163	$164,788	$100,000	$161,668	$161,668

* The assumed rate does reflect the deduction of a hypothetical fund fee but does not reflect the deduction of any other fees, charges or taxes. The death benefit values do reflect the deduction of hypothetical base policy fees and hypothetical death benefit fees. For purposes of this example we assumed a Mortality and Expense Risk Fee and Administrative Charge of 1.15% for Policy Value, 1.30% for Return of Premium and 1.50% for Annual Step-Up. Different hypothetical returns and fees would produce different results.

113

APPENDIX

ADDITIONAL DEATH DISTRIBUTION^SM RIDER

The following example illustrates the Additional Death Distribution^SM additional death benefit payable by this rider as well as the effect of a withdrawal on the Additional Death Distribution^SM benefit amount. The Annuitant is less than age 71 on the Rider Date.

Example 1

Assumptions:

Policy Value on the rider date = $100,000

Premiums paid after the rider date before surrender = $25,000

Gross withdrawals after the rider date = $30,000

Policy Value on date of surrender = $150,000

Summary:
Rider earnings on date of surrender (Policy Value on date of surrender – Policy Value on rider date – premiums paid after rider date + surrenders since rider date that exceeded rider earnings = $150,000 - $100,000 - $25,000 + 0):	$ 25,000
Amount of surrender that exceeds rider earnings ($30,000 - $25,000):	$ 5,000
Base policy death benefit (assumed) on the date of death benefit calculation:	$200,000
Policy Value on the date of death benefit calculations:	$175,000
Rider earnings (= Policy Value on date of death benefit calculations – Policy Value on rider date – premiums since rider date + surrenders since rider date that exceeded rider earnings = $175,000 - $100,000 - $25,000 + $5,000):	$ 55,000
Additional death benefit amount (= additional death benefit factor * rider earnings = 40%* $55,000):	$ 22,000
Total death benefit paid (= base policy death benefit plus additional death benefit amount):	$222,000

Example 2

Assumptions:

Policy Value on the rider date = $100,000

Premiums paid after the rider date before surrender = $0

Gross withdrawals after the rider date = $0

Base policy death benefit (assumed) on the date of death benefit calculation = $100,000

Policy Value on the date of death benefit calculations = $75,000

Summary:
Rider earnings (= Policy Value on date of death benefit calculations – Policy Value on rider date – premiums since rider date + surrenders since rider date that exceeded rider earnings = $75,000 - $100,000 - $0 + $0):	$ 0
Additional death benefit amount (= additional death benefit factor * rider earnings = 40%* $0):	$ 0
Total death benefit paid (= base policy death benefit plus additional death benefit amount):	$100,000

114

APPENDIX

ADDITIONAL DEATH DISTRIBUTION+^SM RIDER

Assume the Additional Death Distribution+^SM rider is added to a new policy opened with $100,000 initial premium payment. The Annuitant is less than age 70 on the rider date. On the first and second rider anniversaries, the Policy Value is $110,000 and $95,000 respectively when the rider fees are deducted. The Annuitant adds a $25,000 premium payment in the 3rd rider year when the Policy Value is equal to $115,000 and then takes a withdrawal of $35,000 during the 4th rider year when the Policy Value is equal to $145,000. After 5 years, the Policy Value is equal to $130,000 and the Death Proceeds are equal to $145,000.

Example 1

Assumptions:

Account value on rider date (equals initial Policy Value since new policy) = $100,000

Additional death benefit during first rider year = $0

Rider fee on first rider anniversary (= rider fee * Policy Value = 0.55% * $110,000) = $605

Additional death benefit during 2nd rider year (= sum of total rider fees paid) = $605

Summary:
Rider fee on second rider anniversary (= rider fee * Policy Value = 0.55% * $95,000)	$ 522.50
Additional death benefit during 3rd rider year (= sum of total rider fees paid = $605 + $522.50)	$ 1,127.50
Rider benefit base in 3rd rider year prior to premium addition (= account value less premiums added since rider date = $115,000 – $0)	$115,000.00
Rider benefit base in 3rd rider year after premium addition (= $140,000 - $25,000)	$115,000.00
Rider benefit base in 4th rider year prior to withdrawal (= account value less premiums added since rider date = $145,000 - $25,000)	$120,000.00
Rider benefit base in 4th rider year after withdrawal = (account value less premiums added since rider date =$110,000 - $25,000)	$ 85,000.00
Rider benefit base in 5th rider year (= $130,000 - $25,000)	$105,000.00
Additional death benefit = rider benefit percentage * rider benefit base = 30% * $105,000	$ 31,500.00
Total Death Proceeds in 5th rider year (= base policy Death Proceeds + additional death benefit amount = $145,000 + $31,500)	$176,500.00

115

APPENDIX

Guaranteed Lifetime Withdrawal Benefit - Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders – REBALANCING EXAMPLES

The following demonstrates, on a purely hypothetical basis, the rebalancing mechanics of this Guaranteed Lifetime Withdrawal Benefit. The investment restrictions, rider fee percentages and withdrawal percentages for Your rider may vary from the percentages used below.

Rebalancing Examples

The following examples assume the initial premium allocations listed in the table below, which we assume satisfy the premium investment requirements provided in the Rate Sheet Prospectus Supplement.

Investment Option Allocations:	Initial Premium Allocations	Initial Premium Allocation Percentages
Stable Account	$ 20,000	20%
Select Investment Option Fund A	$ 13,000	13%
Select Investment Option Fund B	$ 13,000	13%
Select Investment Option Fund C	$ 4,000	4%
Total Select Investment Options	$ 30,000	30%
Flexible Investment Option Fund A	$ 14,000	14%
Flexible Investment Option Fund B	$ 14,000	14%
Flexible Investment Option Fund C	$ 22,000	22%
Total Flexible Investment Options	$ 50,000	50%
Total Investments	$100,000	100%

Example 1: Calculation at rider issue for the rebalance allocations:

The Stable Account portion of the Policy Value is not included in the quarterly Rebalance, therefore the rebalancing allocation percentages are calculated by multiplying the initial premium allocation percentages for the Select Investment Options and Flexible Investment Options by a ratio. The ratio is calculated by taking 100%, divided by 100% less the Stable Account premium allocation percentage. The ratio for this example would be 100% / (100% - 20%) = 1.25.

Investment Option Allocations:	Initial Allocations	Initial Allocation Percentages	Rebalancing Allocation Percentages
Stable Account	$ 20,000	20%	N/A
Total Select Investment Options	$ 30,000	30%	37.5%
Total Flexible Investment Options	$ 50,000	50%	62.5%
Total Investments	$100,000	100%	100%

116

APPENDIX

Hypothetical Adjusted withdrawals -Retirement income max^® 1.2 and retirement income choice^® 1.7 Riders

When a withdrawal is taken, three parts of the Guaranteed Lifetime Withdrawal Benefit can be affected:

1.	Withdrawal Base Components (“WBC”) (Step-Up Component, Growth Component and Growth Basis);
2.	Rider Withdrawal Amount (“RWA”); and
3.	Rider Death Benefit (“RDB”) (if applicable)).

Withdrawal Base Component Adjustments. Gross withdrawals in a rider year up to the rider withdrawal amount will not reduce the withdrawal base components. Gross withdrawals in a rider year in excess of the rider withdrawal amount will reduce the withdrawal base components by an amount equal to the greater of:

1)	the excess gross withdrawal amount; and
2)	a pro rata amount, the result of (A * B) / C, where:

A	is the excess withdrawal (the amount in excess of the rider withdrawal amount remaining prior to the withdrawal);
B	is the withdrawal base component prior to the withdrawal of the excess amount; and
C	is the Policy Value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

Rider Death Benefit Adjustments. Gross withdrawals in a rider year will reduce the rider death benefit by the amount equal to the greater of:

1)	the gross withdrawal amount; and
2)	a pro rata amount, the result of (A * B) / C, where:

A	is the gross withdrawal;
B	is the guaranteed future value prior to the gross withdrawal; and
C	is the Policy Value prior to the gross withdrawal.

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

Example 1 (Withdrawal Base Components):

Assumptions:

Step-Up Component = $100,000

Growth Component = $95,000

Growth Basis = $95,000

Withdrawal Percentage = 5%

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base (greater of the step-up component and the growth component))

Gross withdrawal (“GPWD”) = $5,000

Excess withdrawal (“EWD”) = None

Policy Value (“PV”) = $100,000

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

No. There is no excess withdrawal under the guarantee since no more than $5,000 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the withdrawal base components do not change.

117

Hypothetical Adjusted withdrawals -Retirement income max^® 1.2 and retirement income

choice^® 1.7 Riders — (Continued)

Example 2 (Withdrawal Base Components demonstrating an Excess Withdrawal):

Assumptions:

Step-Up Component = $100,000

Growth Component = $95,000

Growth Basis = $95,000

Withdrawal Percentage = 5%

RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base (greater of the step-up component and the growth component))

GPWD = $7,000

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

PV = $90,000

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

New withdrawal base:

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

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

1.	The formula is (EWD * WBC before any adjustments) / (PV - 5% withdrawal)
2.	Step-Up Component = ($2,000 * $100,000) / ($90,000 - $5,000) = $2,352.94
3.	Growth Component = ($2,000 * $95,000) / ($90,000 - $5,000) = $2,235.29
4.	Growth Basis = ($2,000 * $95,000) / ($90,000 - $5,000) = $2,235.29

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

Step-Up Component: $2,352.94 pro rata amount.

Growth Component: $2,235.29 pro rata amount: and

Growth Basis: $2,235.29 pro rata amount.

Step Four. What is the new withdrawal base component value after the adjustments?

Step-Up Component: $100,000 - $2,352.94 = $97,647.06

Growth Component: $95,000 - $2,235.29 = $92,764.71

Growth Basis: $95,000 - $2,235.29 = $92,764.71

Step Five. What is the new withdrawal base upon which the rider withdrawal amount is based?

Withdrawal Base = Greater of the Step-Up Component ($97,647.06) or the Growth Component ($92,764.71) = $97,647.06

Result. The new withdrawal base is $97,647.06

New rider withdrawal amount:

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

Question: What is the new rider withdrawal amount?

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

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

Example 3 (Rider Death Benefit Option):

Assumptions:

Withdrawal Percentage = 5%

WB = $162,889.46

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

118

Hypothetical Adjusted withdrawals -Retirement income max^® 1.2 and retirement income

choice^® 1.7 Riders — (Continued)

RWA = 5% withdrawal would be $8,144 (5% of the then-current $162,889.46 withdrawal base)

GPWD = $8,144.47

EWD = None

PV = $90,000

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

No. There is no excess withdrawal under the guarantee if no more than $8,144.47 is withdrawn.

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

1.	Total to deduct from the rider death benefit is $8,144.47(there is no excess to deduct)
2.	$100,000) - $8,144.47 = $91,855.53

Result. In this example, because no portion of the withdrawal was in excess of $8,144.47, the total withdrawal base and withdrawal base components do not change and the rider death benefit reduces to $91,855.53.

Example 4 (Rider Death Benefit demonstrating an Excess Withdrawal):

Assumptions:

Withdrawal Percentage = 5%

WB = $162,889.46

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

RWA = 5% withdrawal would be $8,144 (5% of the then-current $162,889.46 withdrawal base)

GPWD = $10,000

EWD = $1,855.53 ($10,000 - $8,144.47)

PV = $90,000

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

Yes. $10,000 - $8,144.47 = $1,855.53 (the excess withdrawal amount).

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

1.	Formula for pro rata amount is: (EWD * (RDB – 5% withdrawal)) / (PV – 5% withdrawal)
2.	(1,855.53 * ($100,000 - $8,144.47) / ($90,000 - $8,144.47)) = $2,082.21.

Step Three. Which is larger, the actual $1,855.53 excess withdrawal amount or the $2,082.21 pro rata amount?

$2,082.21 pro rata amount.

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

Total to deduct from the rider death benefit is $8,144.47 (RWA) + $2,082.21 (pro rata excess) = $10,226.68

$100,000 - $10,226.68 = $89,773.32.

Result. The rider death benefit is $89,773.32.

The Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 riders and any additional options they offer may vary for certain policies, may not be available for all policies, and may not be available in all states.

This disclosure explains the material features of the Retirement Income Max^® 1.2 and Retirement Income Choice^® 1.7 riders.

119

APPENDIX

Hypothetical Adjusted withdrawals -Transamerica Principal Optimizer^SM and Transamerica income Edge^SM 1.2 Riders

When a withdrawal is taken, three parts of the Guaranteed Lifetime Withdrawal Benefit can be affected:

1.	Withdrawal Base (“WB”);
2.	Rider Withdrawal Amount (“RWA); and
3.	Guaranteed Future Value (”GFV“)(if applicable)).

Withdrawal Base. Gross withdrawals in a rider year up to the rider withdrawal amount will not reduce the withdrawal base. Gross withdrawals in a rider year in excess of the rider withdrawal amount will reduce the withdrawal base by an amount equal to the greater of:

1)	the excess withdrawal amount; and
2)	a pro rata amount, the result of (A * B) / C, where:

A	is the excess withdrawal (the amount in excess of the rider withdrawal amount remaining prior to the withdrawal);
B	is the withdrawal base prior to the withdrawal of the excess amount; and
C	is the Policy Value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.

Guaranteed Future Value. Gross withdrawals in a rider year will reduce the guaranteed future value by an amount equal to the greater of:

1)	the gross withdrawal amount; and
2)	a pro rata amount, the result of (A * B) / C, where:

A	is the excess gross withdrawal;
B	is the guaranteed future value prior to the gross withdrawal; and
C	is the Policy Value prior to the gross withdrawal.

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

Example 1 (Base):

Assumptions:

WB = $100,000

Withdrawal Percentage = 5%

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

Gross withdrawal (”GPWD“) = $5,000

Excess withdrawal (”EWD“) = None

Policy Value (”PV“) = $100,000

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

No. There is no excess withdrawal under the guarantee since no more than $5,000 is withdrawn.

Result. In this example, because no portion of the withdrawal was in excess of $5,000, the withdrawal base does not change.

Example 2 (Excess Withdrawal):

Assumptions:

WB = $100,000

Withdrawal Percentage = 5%

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

GPWD = $7,000

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

PV = $90,000

120

Hypothetical Adjusted withdrawals -Transamerica Principal Optimizer^SM and Transamerica

income Edge^SM 1.2 Riders — (Continued)

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

New withdrawal base:

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

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

1.	The formula is (EWD * WB before any adjustments) / (PV – 5% withdrawal)
2.	($2,000 * $100,000) / ($90,000 - $5,000) = $2,352.94

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

$2,352.94 pro rata amount.

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?

$100,000 - $2,352.94 = $97,647.06

Result. The new withdrawal base is $97,647.06

New rider withdrawal amount:

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

Question: What is the new rider withdrawal amount?

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

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

Example 3 (Guaranteed Future Value):

Assumptions:

GFV = $100,000

GPWD = $10,000

PV = $90,000

Step One. Calculate how much of the guaranteed future value is affected by the gross withdrawal.

1.	Formula for pro rata amount is: (GPWD / PV * GFV)
2.	$10,000 / $90,000 * $100,000) = $11,111.11

Step Two. Which is larger, the actual $10,000 gross withdrawal amount or the $11,111.11 pro rata amount?

$11,111.11 pro rata amount.

Step Three. What is the guaranteed future value after the withdrawal base has been taken?

$100,000 - $11,111.11 = $88,888.89.

Result. The guaranteed future value is $88,888.89.

The Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders and any additional options they offer may vary for certain policies, may not be available for all policies, and may not be available in all states.

This disclosure explains the material features of the Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders.

121

APPENDIX

Hypothetical Example of the Withdrawal Base Calculation -Retirement Income Max^® 1.2 rider

The following table demonstrates, on a purely hypothetical basis, the withdrawal base calculation for the Retirement Income Max^® 1.2 rider using an initial premium payment of $100,000 for a Single Life Option rider at an issue age of 80. All values shown are post transaction values. The assumed withdrawal percentage in the example below is 6.30%

Rider Year	Hypothetical Policy Value	Subsequent Premium Payment	Withdrawal	Growth Component Adjustment	Step-Up Component Adjustment	Growth Component	Step-Up Component	Withdrawal Base	Rider Withdrawal Amount
	$100,000	$	$	$		$100,000	$100,000	$100,000	$ 6,300
1	$102,000	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$105,060	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$107,161	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$110,376	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$112,584	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$115,961	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$118,280	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$121,829	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$124,265	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$120,537	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$115,716	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$109,930	$	$	$	$	$124,265 3	$124,265	$124,265 1	$ 7,829
2	$112,129	$	$	$	$	$124,265	$124,265	$124,265	$ 7,829
2	$115,492	$	$	$	$	$124,265	$124,265	$124,265	$ 7,829
2	$117,802	$	$	$	$	$124,265	$124,265	$124,265	$ 7,829
2	$121,336	$	$	$	$	$124,265	$124,265	$124,265	$ 7,829
2	$124,976	$	$	$	$	$124,265	$124,265	$124,265	$ 7,829
2	$177,476	$50,000	$	$	$	$174,265	$174,265	$174,265	$10,979
2	$175,701	$	$	$	$	$174,265	$174,265	$174,265	$10,979
2	$172,187	$	$	$	$	$174,265	$174,265	$174,265	$10,979
2	$167,022	$	$	$	$	$174,265	$174,265	$174,265	$10,979
2	$163,681	$	$	$	$	$182,979 3	$177,476	$182,979 2	$11,528
2	$166,955	$	$	$	$	$182,979	$177,476	$182,979	$11,528
2	$170,294	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$166,888	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$171,895	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$173,614	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$178,822	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$175,246	$	$	$	$	$182,979	$177,476	$182,979	$11,528
3	$151,741	$	$20,000	$9,676	$9,385	$173,302	$168,091	$173,303	$
3	$154,775	$	$	$	$	$173,302	$168,091	$173,303	$
3	$159,419	$	$	$	$	$173,302	$168,091	$173,303	$
3	$161,013	$	$	$	$	$173,302	$168,091	$173,303	$
3	$165,843	$	$	$	$	$173,302	$168,091	$173,303	$
3	$174,135	$	$	$	$	$173,302	$168,091	$173,303	$

122

Hypothetical Example of the Withdrawal Base Calculation -Retirement Income Max^® 1.2 rider — (Continued)

Rider Year	Hypothetical Policy Value	Subsequent Premium Payment	Withdrawal	Growth Component Adjustment	Step-Up Component Adjustment	Growth Component	Step-Up Component	Withdrawal Base	Rider Withdrawal Amount
3	$181,101	$	$	$	$	$181,101 3	$181,101	$181,101 1	$11,409

(1)	Automatic Step Up Applied
(2)	Growth Applied
(3)	Growth Basis Reset/Growth Component Stacking Applied
*	Growth Percentage = 5%

123

APPENDIX

Hypothetical Example of the Withdrawal Base Calculation -Retirement Income Choice^® 1.7 Rider

The following table demonstrates, on a purely hypothetical basis, the withdrawal base calculation for the Retirement Income Choice^® 1.7 Rider using an initial premium payment of $100,000 for a Single Life Option rider at an issue age of 80. All values shown are post transaction values. The assumed withdrawal percentage in the example below is 6.30% and the valuation frequency is annually.

Rider Year	Hypothetical Policy Value	Subsequent Premium Payment	Withdrawal	Growth Component Adjustment	Step-Up Component Adjustment	Growth Component	Step-Up Component	Withdrawal Base	Rider Withdrawal Amount
	$100,000	$	$	$		$100,000	$100,000	$100,000	$ 6,300
1	$102,000	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$105,060	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$107,161	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$110,376	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$112,584	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$115,961	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$118,280	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$121,829	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$124,265	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$120,537	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$115,716	$	$	$	$	$100,000	$100,000	$100,000	$ 6,300
1	$109,930	$	$	$	$	$109,930 3	$109,930	$109,930 1	$ 6,926
2	$112,129	$	$	$	$	$109,930	$109,930	$109,930	$ 6,926
2	$115,492	$	$	$	$	$109,930	$109,930	$109,930	$ 6,926
2	$117,802	$	$	$	$	$109,930	$109,930	$109,930	$ 6,926
2	$121,336	$	$	$	$	$109,930	$109,930	$109,930	$ 6,926
2	$124,976	$	$	$	$	$109,930	$109,930	$109,930	$ 6,926
2	$177,476	$50,000	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$175,701	$	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$172,187	$	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$167,022	$	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$163,681	$	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$166,955	$	$	$	$	$159,930	$159,930	$159,930	$10,076
2	$170,294	$	$	$	$	$170,294	$170,294	$170,294 2	$10,729
3	$166,888	$	$	$	$	$170,294	$170,294	$170,294	$10,729
3	$171,895	$	$	$	$	$170,294	$170,294	$170,294	$10,729
3	$173,614	$	$	$	$	$170,294	$170,294	$170,294	$10,729
3	$178,822	$	$	$	$	$170,294	$170,294	$170,294	$10,729
3	$175,246	$	$	$	$	$170,294	$170,294	$170,294	$10,729
3	$151,741	$	$20,000	$9,806	$9,806	$160,488	$160,488	$160,488	$
3	$154,775	$	$	$	$	$160,488	$160,488	$160,488	$
3	$159,419	$	$	$	$	$160,488	$160,488	$160,488	$
3	$161,013	$	$	$	$	$160,488	$160,488	$160,488	$
3	$165,843	$	$	$	$	$160,488	$160,488	$160,488	$
3	$174,135	$	$	$	$	$160,488	$160,488	$160,488	$

124

Hypothetical Example of the Withdrawal Base Calculation -Retirement Income Choice^® 1.7 Rider — (Continued)

Rider Year	Hypothetical Policy Value	Subsequent Premium Payment	Withdrawal	Growth Component Adjustment	Step-Up Component Adjustment	Growth Component	Step-Up Component	Withdrawal Base	Rider Withdrawal Amount
3	$181,101	$	$	$	$	$181,101 3	$181,101	$181,101 1	$11,409

(1)	Automatic Step Up Applied
(2)	Growth Applied
(3)	Growth Basis Reset/Growth Component Stacking Applied
*	Growth Percentage = 5%

125

APPENDIX

Hypothetical Example of the Withdrawal Base Calculation -Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders

The following table demonstrates, on a purely hypothetical basis, the withdrawal base calculation for the Transamerica Principal Optimizer^SM and Transamerica Income Edge^SM 1.2 riders using an initial premium payment of $100,000 for a Single Life Option rider at an issue age of 80. All values shown are post transaction values. The assumed withdrawal percentage in the example below is 6.30% and the valuation frequency is annually.

Rider Year	Hypothetical Policy Value	Subsequent Premium Payment	Withdrawal	Excess WB Adjustment	Withdrawal Base	Rider Withdrawal Amount
	$100,000	$	$	$	$100,000	$ 6,000
1	$102,000	$	$	$	$100,000	$ 6,000
1	$105,060	$	$	$	$100,000	$ 6,000
1	$107,161	$	$	$	$100,000	$ 6,000
1	$110,376	$	$	$	$100,000	$ 6,000
1	$112,584	$	$	$	$100,000	$ 6,000
1	$115,961	$	$	$	$100,000	$ 6,000
1	$118,280	$	$	$	$100,000	$ 6,000
1	$121,829	$	$	$	$100,000	$ 6,000
1	$124,265	$	$	$	$100,000	$ 6,000
1	$120,537	$	$	$	$100,000	$ 6,000
1	$115,716	$	$	$	$100,000	$ 6,000
1	$109,930	$	$	$	$109,930	$ 6,596
2	$112,129	$	$	$	$109,930	$ 6,596
2	$115,492	$	$	$	$109,930	$ 6,596
2	$117,802	$	$	$	$109,930	$ 6,596
2	$121,336	$	$	$	$109,930	$ 6,596
2	$124,976	$	$	$	$109,930	$ 6,596
2	$177,476	$50,000	$	$	$159,930	$ 9,596
2	$175,701	$	$	$	$159,930	$ 9,596
2	$172,187	$	$	$	$159,930	$ 9,596
2	$167,022	$	$	$	$159,930	$ 9,596
2	$163,681	$	$	$	$159,930	$ 9,596
2	$166,955	$	$	$	$159,930	$ 9,596
2	$170,294	$	$	$	$170,294 1	$10,218
3	$166,888	$	$	$	$170,294	$10,218
3	$171,895	$	$	$	$170,294	$10,218
3	$173,614	$	$	$	$170,294	$10,218
3	$178,822	$	$	$	$170,294	$10,218
3	$175,246	$	$	$	$170,294	$10,218
3	$151,741	$	$20,000	$10,314	$159,980	$
3	$154,775	$	$	$	$159,980	$
3	$159,419	$	$	$	$159,980	$
3	$161,013	$	$	$	$159,980	$
3	$165,843	$	$	$	$159,980	$
3	$174,135	$	$	$	$159,980	$
3	$181,101	$	$	$	$181,101 1	$10,866

⁽¹⁾Automatic Step-Up Applied

126

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 AXIOM^SM III VARIABLE 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 Axiom^SM III Variable 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 May 1, 2020, 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: May 1, 2020

TABLE OF CONTENTS

GLOSSARY OF TERMS	1
THE POLICY—GENERAL PROVISIONS	3
Owner	3
Entire Contract	3
Misstatement of Age or Sex	3
Reallocation of Annuity Units After the Annuity Commencement Date	3
Annuity Payment Options	4
Death Benefit	4
Death of Owner	5
Assignment	5
Evidence of Survival	5
Non-Participating	5
Amendments	5
Employee and Agent Purchases	5
INVESTMENT EXPERIENCE	6
Accumulation Units	6
Annuity Unit Value and Annuity Payment Rates	7
PERFORMANCE	9
HISTORICAL PERFORMANCE DATA	9
Money Market Yields	9
Total Returns	10
Other Performance Data	10
Adjusted Historical Performance Data	11
PUBLISHED RATINGS	11
STATE REGULATION OF US	11
ADMINISTRATION	11
RECORDS AND REPORTS	11
DISTRIBUTION OF THE POLICIES	11
VOTING RIGHTS	12
OTHER PRODUCTS	12
CUSTODY OF ASSETS	12
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	12
OTHER INFORMATION	13
FINANCIAL STATEMENTS	13
APPENDIX
CONDENSED FINANCIAL INFORMATION	14

ii

GLOSSARY OF TERMS

Accumulation Unit—An accounting unit of measure used in calculating the Policy Value in the Separate Account before the Annuity Commencement Date.

Adjusted Policy Value—The Policy Value increased or decreased by any Excess Interest Adjustment.

Administrative Office—Transamerica Life Insurance Company 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 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.

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.

Beneficiary(ies)—The person(s) who has the right to the death benefit as set forth in the policy.

Business Day—A day when the New York Stock Exchange is open for regular trading. Business Day may be referred to as Market Day in your policy.

Cash Value - The Adjusted Policy Value less any applicable surrender charge and rider fees (imposed upon surrender).

Code—The Internal Revenue Code of 1986, as amended.

Enrollment Form—A written application, order form, or any other information received electronically or otherwise upon which the policy is issued and/or is reflected on the data or specifications page.

Excess Interest Adjustment—A positive or negative adjustment to amounts paid out or transferred from the Fixed Account Guaranteed Period Options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by us since the date any payment was received by, or an amount was transferred to, the Guaranteed Period Option. The Excess Interest Adjustment can either decrease or increase the amount to be received by the Owner upon withdrawals, surrenders or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively. The Excess Interest Adjustment will not decrease the interest credited to Your policy below the guaranteed minimum. The Excess Interest Adjustment does not apply to policies issued in New York by Transamerica Financial Life Insurance Company.

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

Fixed Account—One or more Guaranteed Period Options under the policy that are part of our general assets and are not in the Separate Account.

Guaranteed Lifetime Withdrawal Benefit - Any optional benefit under the policy that provides a guaranteed minimum withdrawal benefit, including the Transamerica Principal Optimizer^SM rider, the Retirement Income Max^® 1.2 rider, the Retirement Income Choice^® 1.7 rider and the Transamerica Income Edge^SM 1.2 rider.

Guaranteed Period Options—The various guaranteed interest rate periods of the Fixed Account which we may offer and into which Premium Payments may be paid or amounts transferred when available.

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

• gross  withdrawals (withdrawals plus the surrender charge on the portion of the requested withdrawal that is subject to the surrender charge plus or minus any Excess Interest Adjustment plus taxes (on the withdrawal)); plus

• interest credited in the Fixed Account; plus

• accumulated gains in the Separate Account; minus

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• accumulated losses in the Separate Account; minus

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

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

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.

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.

Separate Account Value - The portion of the Policy Value that is invested in the Separate Account.

Service Charge—An annual charge on each policy anniversary (and a charge at the time of surrender during any Policy Year) for policy maintenance and related administrative expenses.

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

Surrender Charge—A percentage of each Premium Payment that depends upon the length of time from the date of each Premium Payment. The Surrender Charge is assessed on full or partial surrenders from the policy. A Surrender Charge may also be referred to as a “contingent deferred sales charge” or a “contingent deferred sales load.”

Surrender Charge Free Amount - The amount that can be withdrawn each Policy Year without incurring any Surrender Charges. Please see “EXPENSES – Surrender Charges” for more explanation.

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.

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. No registered representative has authority to change or waive any provision of the policy.

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.

Employee and Agent Purchases

The policy may be acquired by an employee or registered representative of any broker/dealer authorized to sell the policy or their immediate family, or by an officer, director, trustee or bona-fide full-time employee of ours or our affiliated companies or their immediate family. In such a case, we may, at our sole discretion, credit an amount equal to a percentage of each Premium Payment to the policy due to lower acquisition costs we experience on those purchases. We may offer certain employer sponsored savings plans, reduced fees and charges including, but not limited to, the annual Service Charge, the Surrender Charges, the mortality and expense

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risk fee and the administrative charge for certain sales under circumstances which may result in savings of certain costs and expenses. In addition, there may be other circumstances of which we are not presently aware which could result in reduced sales or distribution expenses. Credits to the policy or reductions in these fees and charges will not be unfairly discriminatory against any Owner.

INVESTMENT EXPERIENCE

A “net investment factor” is used to determine the value of Accumulation Units and Annuity Units, and to determine annuity payment rates.

Accumulation Units

Allocations of a Premium Payment directed to a Subaccount are credited in the form of Accumulation Units. Each Subaccount has a distinct Accumulation Unit value. The number of units credited is determined by dividing the Premium Payment or amount transferred to the Subaccount by the Accumulation Unit value of the Subaccount as of the end of the Valuation Period during which the allocation is made. For each Subaccount, the Accumulation Unit value for a given Business Day is based on the net asset value of a share of the corresponding portfolio of the underlying fund portfolios less any applicable charges or fees. The investment performance of the portfolio, expenses, and deductions of certain charges affect the value of an Accumulation Unit.

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

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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)

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) and (iv) 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 to the mortality and expense risk fee and administrative charge shown in Your contract as a percentage of the daily net asset value of shares held in that Subaccount.

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(iv) is a factor representing the Fund Facilitation Fee. This factor is a percentage of the daily net asset value of a fund share held in a Subaccount subject to a Fund Facilitation Fee, up to the maximum percentage of 0.60%. Such factor is equal to 0.00% if you have not assets held in a Subaccount subject to a Fund Facilitation Fee.

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.

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

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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, Surrender Charges, or fees for any optional riders or endorsements. Any such deduction would reduce the percentage increase or make greater any percentage decrease.

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

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. The yield calculations also do not reflect Surrender Charges that may be applicable to a particular policy. Surrender Charges range from 5% to 0% of the amount of Premium Payments surrendered based on the number of years since the Premium Payment was made. Surrender Charges are based on the number of years since the date the Premium Payment was made, not the policy issue date.

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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 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. Total return calculations will reflect the effect of Surrender Charges that may be applicable to a particular period. The total return will then be calculated according to the following formula.

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

Other Performance Data

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 except that the Surrender Charge percentage will be assumed to be 0%.

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

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

10

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. 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 principal underwriting agreement with our affiliate, Transamerica Capital, Inc. (“TCI”), for the distribution and sale of the policies. We may reimburse TCI for certain expenses it incurs in order to pay for the distribution of the policies (e.g., commissions payable to selling firms selling the Policies, as described below).

TCI's home office is located at 1801 California St. Suite 5200 Denver, Colorado 80202. TCI is an indirect, wholly owned subsidiary of Aegon USA. TCI is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934, and is a member of Financial Industry Regulatory Authority (“FINRA”). TCI is not a member of the Securities Investor Protection Corporation.

We currently offer the policies on a continuous basis. We anticipate continuing to offer the policies, but reserve the right to discontinue the offering. The policies are offered to the public through sales representatives of broker-dealers (“selling firms”) that have entered into selling agreements with us and with TCI. TCI compensates these selling firms for their services. Sales representatives with these selling firms are appointed as our insurance agents.

11

As of December 31, 2019, no amount was paid to TCI in connection with this policy sold through the Separate Account because the policy had not commenced operations. We and/or our affiliates provide paid-in capital to TCI and pay for TCI's operating and other expenses, including overhead, legal and accounting fees.

We and/or TCI or another affiliate may pay certain selling firms additional cash amounts for: (1) marketing allowances, which may include marketing services and increased access to their sales representatives; (2) sales promotions relating to the policies; (3) costs associated with sales conferences and educational seminars for their sales representatives; and (4) other sales expenses of the selling firms. We and/or TCI may make bonus payments to certain selling firms based on aggregate sales or persistency standards. These additional payments are not offered to all selling firms, and the terms of any particular agreement governing the payments may vary among selling firms. Differences in compensation paid to a selling firm or its sales representatives for selling one product over another may create conflicts of interests for such firms or its sales representatives.

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.

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, 2019 and for the years ended December 31, 2019 and 2018, and the statutory-basis financial statements and schedules of Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company as of December 31, 2019 and 2018 and for each of the three years in the period ended December 31, 2019 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.

12

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.

13

APPENDIX

CONDENSED FINANCIAL INFORMATION

Because the Subaccounts in the policy offered under this Transamerica Axiom^SM III Variable Annuity Prospectus had not yet been sold or commenced operations as of December 31, 2019, no class of Accumulation Units have yet been derived. Accordingly, no condensed financial information is available as of the date of this Transamerica Axiom^SM III Variable Annuity Statement of Additional Information.

14

FINANCIAL STATEMENTS – STATUTORY BASIS

AND SUPPLEMENTARY INFORMATION

Transamerica Life Insurance Company

Years Ended December 31, 2019, 2018 and 2017

Transamerica Life Insurance Company

Financial Statements – Statutory Basis

and Supplementary Information

Years Ended December 31, 2019, 2018 and 2017

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 Corrections of Errors	26
4. Fair Values of Financial Instruments	30
5. Investments	39
6. Premium and Annuity Considerations Deferred and Uncollected	60
7. Policy and Contract Attributes	60
8. Reinsurance	72
9. Income Taxes	77
10. Capital and Surplus	84
11. Securities Lending	87
12. Retirement and Compensation Plans	88
13. Related Party Transactions	90
14. Commitments and Contingencies	95
15. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities	101
16. Reconciliation to Statutory Statement	104
17. Subsequent Events	105
Appendix A –Listing of Affiliated Companies	106
Statutory-Basis Financial Statement Schedules
Summary of Investments – Other Than Investments in Related Parties	110
Supplementary Insurance Information	111
Reinsurance	112

Report of Independent Auditors

To the Board of Directors of

Transamerica Life Insurance Company

We have audited the accompanying statutory-basis financial statements of Transamerica Life Insurance Company (the “Company”), which comprise the balance sheets – statutory basis as of December 31, 2019 and 2018, and the related statements of operations – statutory basis, of changes in capital and surplus – statutory basis, and of cash flow – statutory basis for each of the three years in the period ended December 31, 2019, including the related notes and schedules of supplementary insurance information and reinsurance as of December 31, 2019, 2018 and for each of the three years in the period ended December 31, 2019 and summary of investments—other than investments in related parties as of December 31, 2019 listed in the accompanying index (collectively referred to as the “financial statements”).

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.

PricewaterhouseCoopers LLP, 1 N Upper Wacker Drive, Chicago, IL 60606

T: 312-298-2000, F: , www.pwc.com

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, 2019 and 2018 or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2019.

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, 2019 and 2018 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in accordance with the accounting practices prescribed or permitted by the Iowa Insurance Division described in Note 2.

Emphasis of Matters

As discussed in Note 1 to the financial statements, the financial statements give retroactive effect to the merger of Transamerica Advisors Life Insurance Company into the Company on July 1, 2019 in a transaction accounted for as a statutory merger. Our opinion is not modified with respect to this matter.

As discussed in Note 3 to the financial statements, in 2019 the Company changed its valuation basis for variable annuities. Our opinion is not modified with respect to this matter.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

April 27, 2020

PricewaterhouseCoopers LLP, 1 N Upper Wacker Drive, Chicago, IL 60606

T: 312-298-2000, F: , www.pwc.com

Transamerica Life Insurance Company

Balance Sheets – Statutory Basis

(Dollars in Thousands)

	December 31
	2019			2018
Admitted assets
Cash, cash equivalents and short-term investments	$	1,693,803		$	2,331,468
Bonds		25,412,467			27,627,135
Preferred stocks		111,630			104,793
Common stocks		3,217,206			2,998,481
Mortgage loans on real estate		5,096,613			4,600,493
Real estate		51,546			114,446
Policy loans		1,099,596			1,139,853
Securities lending reinvested collateral assets		1,246,827			1,835,122
Derivatives		1,718,025			2,097,951
Other invested assets		2,124,211			1,666,946
Total cash and invested assets		41,771,924			44,516,688
Accrued investment income		404,846			428,558
Premiums deferred and uncollected		286,843			115,235
Net deferred income tax asset		475,358			627,639
Variable annuity reserve hedge offset deferral		195,067			231,853
Other assets		1,368,699			1,472,587
Separate account assets		85,720,689			76,783,392
Total admitted assets	$	130,223,426		$	124,175,952
Liabilities and capital and surplus
Aggregate reserves for policies and contracts	$	26,237,936			27,294,949
Policy and contract claim reserves		479,226			527,901
Liability for deposit-type contracts		591,570			967,757
Other policyholders’ funds		21,831			17,617
Transfers from separate accounts due or accrued		(898,597	)		(1,034,929	)
Funds held under reinsurance treaties		4,094,413			3,785,867
Asset valuation reserve		879,143			694,388
Interest maintenance reserve		308,453			299,928
Derivatives		1,851,801			975,974
Payable for collateral under securities loaned and other transactions		1,731,464			3,080,656
Borrowed money		1,274,504			3,052,991
Other liabilities		1,402,824			1,452,027
Separate account liabilities		85,720,688			76,783,391
Total liabilities		123,695,256			117,898,517
Total capital and surplus		6,528,170			6,277,435
Total liabilities and capital and surplus	$	130,223,426		$	124,175,952

See accompanying notes.

3

Transamerica Life Insurance Company

Statements of Operations – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2019			2018			2017
Revenues
Premiums and other considerations	$	12,146,106		$	10,813,518		$	(3,514,168	)
Net investment income		1,644,325			1,667,172			2,516,282
Commissions and expense allowances on reinsurance ceded		527,860			835,062			608,958
Reserve adjustment on reinsurance ceded		(83,492	)		(67,838	)		(1,210,892	)
Consideration received on reinsurance recapture and novations		15,485			217,258			462,313
Separate accounts net gain from operations		—			—			139,852
Fee revenue and other income		1,891,767			1,971,474			1,996,610
Total revenue		16,142,051			15,436,646			998,955
Benefits and expenses
Death benefits		1,706,779			1,760,272			1,588,061
Annuity benefits		1,173,639			1,183,691			1,207,143
Accident and health benefits		281,435			295,343			141,823
Surrender benefits		14,231,385			14,536,177			13,109,739
Other benefits		168,259			156,157			156,951
Net increase (decrease) in reserves		(2,277,561	)		228,055			(12,826,051	)
Commissions		908,521			912,831			927,565
Net transfers to (from) separate accounts		(3,868,617	)		(4,075,245	)		(2,619,683	)
IMR adjustment due to reinsurance		—			(13,229	)		(2,065,984	)
General insurance expenses and other		833,410			1,219,389			1,033,737
Total benefits and expenses		13,157,250			16,203,441			653,301
Gain (loss) from operations before dividends and federal income taxes		2,984,801			(766,795	)		345,654
Dividends to policyholders		9,236			5,953			8,057
Gain (loss) from operations before federal income taxes		2,975,565			(772,748	)		337,597
Federal income tax (benefit) expense		(77,933	)		(63,062	)		(1,035,106	)
Net gain (loss) from operations		3,053,498			(709,686	)		1,372,703
Net realized capital gains (losses), after tax and amounts transferred to interest maintenance reserve		240,524			(714,132	)		(575,050	)
Net income (loss)	$	3,294,022		$	(1,423,818	)	$	797,653

See accompanying notes.

4

Transamerica Life Insurance Company

Statements of Changes in Capital and Surplus – Statutory Basis

(Dollars in Thousands)

Balance at January 1, 2017	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	$	1,282		$	(58,000	)	$	150,000	$	3,653,830		$	577,936		$	2,135,591			6,467,401
Merger of Transamerica Advisors Life Insurance Company (TALIC)		—		—			—			—		242,198			—			453,845			696,043
Balance at January 1, 2017 (TALIC Merger)		6,762		1,282			(58,000	)		150,000		3,896,028			577,936			2,589,436			7,163,444
Net income (loss)		—		—			—			—		—			—			797,653			797,653
Change in net unrealized capital gains/losses, net of taxes		—		—			—			—		—			(489,076	)		1,172,461			683,385
Change in net deferred income tax asset		—		—			—			—		—			—			(956,486	)		(956,486	)
Change in nonadmitted assets		—		—			—			—		—			—			474,981			474,981
Change in asset valuation reserve		—		—			—			—		—			—			124,240			124,240
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		—		—			—			—		—			—			(620,523	)		(620,523	)
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	$	3,472,830		$	89,841		$	3,689,056		$	7,351,473
Net income (loss)		—		—			—			—		—			—			(1,423,818	)		(1,423,818	)
Change in net unrealized capital gains/losses, net of taxes		—		—			—			—		—			145,059			1,145,316			1,290,375
Change in net deferred income tax asset		—		—			—			—		—			—			164,466			164,466
Change in nonadmitted assets		—		—			—			—		—			—			45,646			45,646
Change in asset valuation reserve		—		—			—			—		—			—			16,359			16,359
Change in surplus as a result of reinsurance		—		—			—			—		—			—			17,616			17,616
Dividends to stockholders		—		—			—			—		—			—			(624,567	)		(624,567	)
Return of capital		—		—			—			—		(558,740	)		—			—			(558,740	)
Other changes—net		—		(559	)		—			—		2,576			(3,047	)		(345	)		(1,375	)
Balance at December 31, 2018	$	6,762	$	425		$	(58,000	)	$	150,000	$	2,916,666		$	231,853		$	3,029,729		$	6,277,435

Continued on next page.

5

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, 2018	$	6,762	$	425		$	(58,000	)	$	150,000		$	2,916,666		$	231,853		$	3,029,729		$	6,277,435
Net income (loss)		—		—			—			—			—			—			3,294,022			3,294,022
Change in net unrealized capital gains/losses, net of tax		—		—			—			—			—			(36,786	)		(290,676	)		(327,462	)
Change in net deferred income tax asset		—		—			—			—			—			—			(164,812	)		(164,812	)
Change in nonadmitted assets		—		—			—			—			—			—			105,654			105,654
Change in reserve on account of change in valuation basis		—		—			—			—			—			—			(1,248,411	)		(1,248,411	)
Change in asset valuation reserve		—		—			—			—			—			—			(184,755	)		(184,755	)
Change in surplus as a result of reinsurance		—		—			—			—			—			—			(146,952	)		(146,952	)
Change in surplus notes		—		—			—			(150,000	)		—			—			—			(150,000	)
Change in treasury stock		—		—			58,000			—			—									58,000
Return of capital		—		—			—			—			(307,578	)		—			—			(307,578	)
Dividends to stockholders		—		—			—			—			—			—			(725,000	)		(725,000	)
Other changes—net		—		(425	)		—			—			1,625			367			46,462			48,029
Balance at December 31, 2019	$	6,762	$	—		$	—		$	—		$	2,610,713		$	195,434		$	3,715,261		$	6,528,170

See accompanying notes.

6

Transamerica Life Insurance Company

Statements of Cash Flow – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2019			2018			2017
Operating activities
Premiums and annuity considerations	$	11,959,055		$	10,836,714		$	5,030,303
Net investment income		1,853,706			1,826,005			2,524,319
Other income		2,295,448			2,891,089			6,905,408
Benefit and loss related payments		(17,435,718	)		(17,958,301	)		(16,076,467	)
Net transfers from separate accounts		4,005,482			4,343,398			2,904,380
Commissions and operating expenses		(1,898,769	)		(1,892,868	)		(2,050,512	)
Dividends paid to policyholders		(5,889	)		(6,350	)		(7,348	)
Federal income taxes (paid) received		(139,992	)		939,301			438,896
Net cash provided by (used in) operating activities		633,323			978,988			(331,021	)
Investing activities
Proceeds from investments sold, matured or repaid	$	15,951,729		$	9,086,610		$	10,468,686
Costs of investments acquired		(13,028,169	)		(7,574,764	)		(8,455,291	)
Net change in policy loans		40,258			48,668			52,058
Net cost of investments acquired		(12,987,911	)		(7,526,096	)		(8,403,233	)
Net cash provided by (used in) investing activities	$	2,963,818		$	1,560,514		$	2,065,453
Financing and miscellaneous activities
Repayment of surplus notes	$	(150,000	)	$	—		$	—
Capital and paid in surplus received (returned)		(248,376	)		(556,833	)		(434,179	)
Dividends to stockholders		(725,000	)		(564,220	)		(620,523	)
Net deposits (withdrawals) on deposit-type contracts		(429,725	)		(201,168	)		(2,167,303	)
Net change in borrowed money		(1,765,528	)		(1,151,474	)		1,874,369
Net change in funds held under reinsurance treaties		(60,731	)		(271,793	)		(75,583	)
Net change in payable for collateral under securities lending and other transactions		(1,347,778	)		(15,819	)		(125,030	)
Other cash (applied) provided		492,332			587,583			98,001
Net cash provided by (used in) financing and miscellaneous activities		(4,234,806	)		(2,173,724	)		(1,450,248	)
Net increase (decrease) in cash, cash equivalents and short-term investments		(637,665	)		365,778			284,184
Cash, cash equivalents and short-term investments:
Beginning of year		2,331,468			1,965,690			1,681,506
End of year	$	1,693,803		$	2,331,468		$	1,965,690

See accompanying notes.

7

Transamerica Life Insurance Company

Statements of Cash Flow (supplemental) – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
Supplemental disclosures of cash flow information	2019		2018		2017
Non-cash activities during the year not included in the Statutory Statement of Cash Flows:
Stock cancellations	$	57,575	$	—	$	—
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
Transfer of bonds to settle reinsurance obligations		—		—		22,479
Asset transfer of ownership between hedge funds		—		—		125,036

8

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

December  31, 2019

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 July 1, 2019, the Company completed a merger with Transamerica Advisors Life Insurance Company (TALIC), an Arkansas-domiciled affiliate. On October 1, 2018, the Company completed a merger with Firebird Re Corp (FReC), an Arizona-domiciled affiliate. The mergers were accounted for in accordance with the Statement of Statutory Accounting Principles (SSAP) No. 68, Business Combinations and Goodwill, as a statutory merger. As such, financial statements for periods prior to the mergers were combined and the recorded assets, liabilities and surplus of TALIC and FReC on a US statutory basis were carried forward to the merged company. As a result of the mergers, TALIC and FReC’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 is no longer reflected as ceded risk in the restated merged financials. As a result of the merger, the business previously ceded from TALIC to the Company is no longer reflected as assumed risk in the restated merged financials.

Summarized financial information for the Company and TALIC presented separately for periods prior to the merger is as follows. The amounts presented for the Company’s revenues are reflective of the revision as described in Note 3:

	Year Ended December 31
	2018			2017
Revenues:
Company	$	15,206,362		$	730,065
TALIC		230,284			268,890
	$	15,436,646		$	998,955
Net income (loss):
Company	$	(1,353,504	)	$	603,700
TALIC		(70,314	)		193,953
	$	(1,423,818	)	$	797,653

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

	December 31 2018
Assets:
Company	$	117,015,550
TALIC		7,204,454
Reclassification to conform to current year presentation: Current federal income tax recoverable		(44,052	)
	$	124,175,952
Liabilities:
Company	$	111,237,254
TALIC		6,705,315
Reclassification to conform to current year presentation: Other liabilities		(44,052	)
	$	117,898,517
Capital and Surplus:
Company	$	5,778,296
TALIC		499,139
	$	6,277,435

Nature of Business

The Company sells individual non-participating whole life, endowment and term contracts, and pension products, as well as a broad line of single fixed and flexible premium annuity products and guaranteed investment contracts. 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.

10

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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 which differs from NAIC SAP:

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.

11

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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		2019		2018			2017
Net income (loss), State of Iowa basis		XXX		XXX		XXX	$	3,294,022	$	(1,423,818	)	$	797,653
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:
None								—		—			—
Net income (loss), NAIC SAP		XXX		XXX		XXX	$	3,294,022	$	(1,423,818	)	$	797,653
Statutory surplus, state of Iowa basis		XXX		XXX		XXX	$	6,528,170	$	6,277,435		$	7,351,473
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	)
Statutory surplus, NAIC SAP		XXX		XXX		XXX	$	6,528,170	$	6,045,582		$	7,264,679

The Company elected early adoption of SSAP No. 108, Derivatives Hedging Variable Annuities Guarantees (SSAP 108) effective July 1, 2019. The early adoption allowed for transition from and release of a similar permitted practice in place with the IID since October 1, 2016 (the Permitted Practice). The Company received approval from the IID on September 4, 2019. Please refer to Note 3 for additional information.

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.

12

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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. 26R, Bonds, 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.

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

13

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 statements 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 statements 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 or the entity will likely not 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.

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 and are 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.

14

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 statements 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 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 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.

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.

15

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 statements 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 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. Due and accrued amounts determined to be uncollectible are written off through the statements of operations.

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. The net deferral is reported as the

16

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 statements 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.

In 2019, the NAIC revised the AVR Factors (basic contribution, reserve objective and maximum reserve) to be consistent with the risk-based capital (RBC) after-tax factors, which were amended in 2018 as a result of federal tax reform. The AVR factor changes are effective for year-end 2019. As of December 31, 2019, the factor changes decreased Capital and Surplus by $127,960. The changes were recorded to the Change in Asset Valuation Reserve line of the Statements of Changes in Capital and Surplus.

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—Derivatives.

(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 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. 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. In these transactions, the derivative is accounted for in a manner consistent with the cash instrument and replicated asset. For GAAP, the derivative is reported at fair value, with the changes in fair value reported in income.

17

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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 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, in the financial statements. If the swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

Cross currency swaps are utilized to mitigate risks when the Company holds foreign denominated assets or liabilities; therefore, converting the asset or liability to a U.S. dollar 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

18

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 market risk on 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, in the financial statements. If the swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the 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.

Futures contracts are used to hedge the liability risk 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 sheets 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.

19

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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

The Company 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 sheets 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.

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.

20

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 sheets (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 sheets. Under GAAP, the reinvested collateral is included within invested assets (i.e. it is not one-line reported).

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 sheets, 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.

Offsetting of Assets and Liabilities

Financial assets and liabilities are offset in the Balance Sheets when the Company has a legally enforceable right to offset and has the intention to settle the asset and liability on a net basis.

Other Assets and Other Liabilities

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

Other liabilities consist primarily of remittances, amounts withheld by the Company, accrued expenses, payable for securities 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.

Separate Accounts

The majority of 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.

21

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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.

Certain other non-indexed guaranteed separate accounts represent funds invested by the Company for the benefit of the 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 fair value. These guarantees are included in the general account due to the nature of the guaranteed return.

Assets held in trust for purchases of variable life, variable universal life, variable annuity, and modified guaranteed 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.

Income and gains and losses with respect to the assets in the separate accounts supporting modified guaranteed annuity contracts are included in the statements of operations as a component of net transfers from separate accounts.

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.

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 interest sensitive whole life, the reserves held in the General Account are equal to the cash surrender value.

22

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

In accordance with SSAP No. 51R, Life Contracts, and No. 54R, Individual and Group Accident and Health Contracts, the Company reports the amount of insurance, if any, for which the gross premiums are less than the net premiums according to the valuation standards and any related premium deficiency reserve established. Anticipated investment income is included as a factor in the health contract premium deficiency calculation, respectively.

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 sheets 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.

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 statements 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.

23

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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.

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. Unlike GAAP, SSAP No. 101 does not consider state income taxes in the measurement of deferred taxes. SSAP No. 101 also requires additional testing to measure gross deferred tax assets. The additional testing limits gross deferred tax asset admission to 1) the amount of federal income taxes paid in prior years recoverable through hypothetical loss carrybacks of existing temporary differences expected to reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback provisions, not to exceed three years, plus 2) the amount of remaining gross deferred 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 gross deferred tax assets that can be offset against existing gross deferred tax liabilities after considering character (i.e. ordinary versus capital) and reversal patterns. The Company’s reported net deferred tax asset or liability is the sum of gross deferred tax assets admitted through this three part test plus the sum of all deferred tax liabilities.

24

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 are 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 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.

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 sheets to the extent that they are not impaired.

25

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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.

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

As of July 1, 2019, the Company has received IID approval on an approach for transitioning from a prior permitted practice into full implementation of SSAP No. 108. The approved transition approach will not result in adjustment to the Company’s historical statutory reporting or existing unamortized deferral balances established under the permitted practice at the time of transition. The Company will continue amortizing deferral balances established under the permitted practice according to the amortization schedule previously approved. This amortization will be reported as net realized capital gains (losses) in the Statements of Operations. The net deferral is re-classed from unassigned to special surplus and is presented in the Variable annuity reserve hedge offset deferral financial statement line item on the balance sheets. As of the date of transition, current period fair value fluctuations in the designated derivative instruments offset by the current period Valuation Manual section 21 (VM-21) liability change attributed to the hedged risk (“natural offset”) will be included in net realized capital gains (losses) in the Statements of Operations. As of the date of transition, the Company is fully compliant with the provisions of SSAP 108. The adoption of SSAP 108 and the contemporaneous release of the Permitted Practice will not impact historical statutory reporting or remaining residual balances established under the Permitted Practice and will not have a significantly different impact, in comparison to the Permitted Practice, on the Company’s statutory capital position or RBC ratio. Differences include reporting the natural offset as net realized capital gains/losses in the statements of operations compared to previously being included within the change in unrealized gains/losses with no impact to capital and surplus. Additionally, the deferral amortization under SSAP 108 begins in the subsequent reporting period as opposed to starting in the period it was established, as with the Permitted Practice. The delay in deferral amortization impacts the timing and flow through statutory capital and surplus, but does not create material differences from the Permitted Practice.

Effective January 1, 2019, the NAIC adopted revisions to SSAP No. 30, Unaffiliated Common Stock, which updated the definition of common stock to include SEC registered closed-end funds and unit investment trusts. The adoption of this guidance did not impact the financial position or results of operations of the Company.

26

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

Change in Valuation Basis

As of December 31, 2019, the Company has received IID approval on an approach for adoption of the NAIC 2020 VM-21 and related Risk Based Capital C3P2 changes documented in the VM-21 2020 NAIC Valuation Manual: Requirements for Principle-Based Reserves for Variable Annuities. The Company has elected to early adopt the VM-21 requirements for variable annuities effective December 31, 2019. The approved transition approach did not result in an adjustment to the Company’s historical statutory reporting or existing balances at the time of transition. The Company reported the increase to the VM-21 reserve of $1,248,411. As a result, the Company released the voluntary reserve that was recorded to account for the adoption in the amount of $850,000 which was developed considering Q4 2018 balances and factors. The change year-over-year is due to significant market factor changes such as bond yields and treasury rates. As of the date of transition, the Company is fully compliant with the provisions of VM-21.

27

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

Revision to Prior Years

During 2019, the Company identified errors in prior year financial statements for which the Company has determined it appropriate to revise. The Company assessed the materiality of these revisions and concluded these revisions are not material to the December 31, 2018 and 2017 financial statements as a whole. The following tables show the impact of the revision after the effect of the TALIC merger as described in Note 1:

	Year Ended December 31, 2018
	As Revised for the Merger			Adjustment			As Revised
Statements of Operations
Revenues
Premiums and other considerations	$	11,448,988			$(635,470	)	$	10,813,518
Fee revenue and other income		1,977,174			(5,700	)		1,971,474
Total revenue	$	16,077,816		$	(641,170	)	$	15,436,646
Benefits and expenses
Surrender benefits	$	15,154,347		$	(618,170	)	$	14,536,177
Total benefits and expenses		16,821,611			(618,170	)		16,203,441
Gain (loss) from operations before dividends and federal income taxes		(743,795	)		(23,000	)		(766,795	)
Federal income tax (benefit) expense		(55,012	)		(8,050	)		(63,062	)
Net gain (loss) from operations		(694,736	)		(14,950	)		(709,686	)
Net income (loss)	$	(1,408,868	)	$	(14,950	)	$	(1,423,818	)
Statements of Changes in Capital and Surplus
Balance at December 31, 2017
Net income (loss)	$	(1,408,868	)	$	(14,950	)	$	(1,423,818	)
Other changes—net		(16,325	)		14,950			(1,375	)
Balance at December 31, 2018	$	6,277,435		$	—		$	6,277,435
Statements of Cash Flows
Operating activities
Premiums and annuity considerations	$	11,449,184		$	(612,470	)	$	10,836,714
Other income		2,896,789			(5,700	)		2,891,089
Benefit and loss related payments		(18,576,471	)		618,170			(17,958,301	)
Net cash provided by (used in) operating activities		978,988			—			978,988
Financing and miscellaneous activities
Net deposits (withdrawals) on deposit-type contracts	$	(146,883	)	$	(54,285	)	$	(201,168	)
Other cash (applied) provided		533,298			54,285			587,583
Net cash provided by (used in) financing and miscellaneous activities		(2,173,724	)		—			(2,173,724	)
Net increase (decrease) in cash, cash equivalents and short-term investments		365,778			—			365,778
Cash, cash equivalents and short-term investments:
Beginning of year		1,965,690			—			1,965,690
End of year	$	2,331,468		$	—		$	2,331,468

28

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

	Year Ended December 31, 2017
	As Revised for the Merger			Adjustment			As Revised
Statements of Operations
Revenues
Premiums and other considerations	$	(3,098,001	)	$	(416,167	)	$	(3,514,168	)
Fee revenue and other income		1,997,110			(500	)		1,996,610
Total revenue	$	1,415,622		$	(416,667	)	$	998,955
Benefits and expenses
Surrender benefits	$	13,526,406		$	(416,667	)	$	13,109,739
Total benefits and expenses		1,069,968			(416,667	)		653,301
Gain (loss) from operations before dividends and federal income taxes		345,654			—			345,654
Net gain (loss) from operations		1,372,703			—			1,372,703
Net income (loss)	$	797,653		$	—		$	797,653
Statements of Cash Flows
Operating activities
Premiums and annuity considerations	$	5,446,470		$	(416,167	)	$	5,030,303
Other income		6,905,908			(500	)		6,905,408
Benefit and loss related payments		(16,493,134	)		416,667			(16,076,467	)
Net cash provided by (used in) operating activities		(331,021	)		—			(331,021	)
Financing and miscellaneous activities
Net deposits (withdrawals) on deposit-type contracts	$	(2,130,022	)	$	(37,281	)	$	(2,167,303	)
Other cash (applied) provided		60,720			37,281			98,001
Net cash provided by (used in) financing and miscellaneous activities		(1,450,248	)		—			(1,450,248	)
Net increase (decrease) in cash, cash equivalents and short-term investments		284,184			—			284,184
Cash, cash equivalents and short-term investments:
Beginning of year		1,681,506			—			1,681,506
End of year	$	1,965,690		$	—		$	1,965,690

Management has determined that the amounts primarily relate to misclassifications of balances within the Statements of Operations and Cash Flows for the years ended December 31, 2018 and 2017 related to accounting for retirement plan cash flows and other cash flow presentation reclassifications. This error resulted in offsetting misstatements to premiums and other considerations, fee revenue and other income, and surrender benefits and corresponding offsetting misstatements within the cash provided by (used in) operating activities and cash provided by (used in) financing and miscellaneous activities. The misclassifications had no impact to the Company’s net income or capital and surplus in the prior years.

In addition, Management reclassified certain prior year out of period adjustments from income to capital and surplus per SSAP No. 3, Accounting Changes and Corrections of Errors.

29

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

Reclassifications

Certain amounts in prior year financial statement balances and footnote disclosures have been reclassified to conform to the current year presentation.

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 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 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.

30

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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.

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

31

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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 and spot rates at the balance sheets 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 sheets 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.

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

32

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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.

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.

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.

33

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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, 2019 and 2018, respectively:

	December 31, 2019
	Aggregate Fair Value			Admitted Value		(Level 1)		(Level 2)			(Level 3)		Net Asset Value (NAV)		Not Practicable (Carrying Value)
Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	1,298,116		$	1,298,076	$	1,042,719	$	255,397		$	—	$	—	$	—
Short-term notes receivable from affiliates		240,300			240,300		—		240,300			—		—		—
Bonds		28,644,195			25,412,467		5,355,305		22,844,657			444,233		—		—
Preferred stocks, other than affiliates		109,845			111,630		—		108,849			996		—		—
Common stocks, other than affiliates		80,789			80,789		10,227		19			70,543		—		—
Mortgage loans on real estate		5,383,132			5,096,613		—		—			5,383,132		—		—
Other invested assets		262,406			218,682		—		243,524			18,882		—		—
Derivative assets:
Options		311,739			311,739		—		311,739			—		—		—
Interest rate swaps		1,363,717			1,363,526		—		1,363,717			—		—		—
Currency swaps		8,929			7,304		—		8,929			—		—		—
Credit default swaps		59,599			34,248		—		59,599			—		—		—
Equity swaps		55			55		—		55			—		—		—
Interest rate futures		467			467		467		—			—		—		—
Equity futures		686			686		686		—			—		—		—
Derivative assets total		1,745,192			1,718,025		1,153		1,744,039			—		—		—
Policy loans		1,099,596			1,099,596		—		1,099,596			—		—		—
Securities lending reinvested collateral		987,763			987,763		96		987,667			—		—		—
Separate account assets		85,275,020			85,209,155		81,391,463		3,878,274			5,283		—		—
Liabilities
Investment contract liabilities		16,687,551			11,934,145		—		218,239			16,469,312		—		—
Derivative liabilities:
Options		151,696			151,696		—		151,696			—		—		—
Interest rate swaps		1,279,477			1,442,132		—		1,279,477			—		—		—
Currency swaps		2,279			4,328		—		2,279			—		—		—
Credit default swaps		(3,740	)		13,450		—		(3,740	)		—		—		—
Equity swaps		211,606			211,606		—		211,606			—		—		—
Interest rate futures		22,916			22,916		22,916		—			—		—		—
Equity futures		5,673			5,673		5,673		—			—		—		—
Derivative liabilities total		1,669,907			1,851,801		28,589		1,641,318			—		—		—
Dollar repurchase agreements		448,829			448,829		—		448,829			—		—		—
Payable for securities lending		1,246,827			1,246,827		—		1,246,827			—		—		—
Payable for derivative cash collateral		484,637			484,637		—		484,637			—		—		—
Separate account annuity liabilities		78,615,086			78,617,102		2,783		78,565,537			46,766		—		—

34

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

	December 31, 2018
	Aggregate Fair Value			Admitted Value		(Level 1)		(Level 2)			(Level 3)		Net Asset Value (NAV)		Not Practicable (Carrying Value)
Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	1,966,071		$	1,966,071	$	1,385,771	$	580,300		$	—	$	—	$	—
Short-term notes receivable from affiliates		261,000			261,000		—		261,000			—		—		—
Bonds		28,352,356			27,627,135		7,005,814		20,905,525			441,017		—		—
Preferred stocks, other than affiliates		97,812			104,793		—		94,815			2,997		—		—
Common stocks, other than affiliates		171,979			171,979		15,401		6			156,572		—		—
Mortgage loans on real estate		4,647,770			4,600,493		—		—			4,647,770		—		—
Other invested assets		241,689			214,934		—		229,963			11,726		—		—
Derivative assets:
Options		996,427			996,427		—		996,427			—		—		—
Interest rate swaps		710,817			711,165		—		710,817			—		—		—
Currency swaps		15,288			15,495		—		15,288			—		—		—
Credit default swaps		52,360			52,579		—		52,360			—		—		—
Equity swaps		281,457			281,457		—		281,457			—		—		—
Interest rate futures		20,639			20,639		20,639		—			—		—		—
Equity futures		20,189			20,189		20,189		—			—		—		—
Derivative assets total		2,097,177			2,097,951		40,828		2,056,349			—		—		—
Policy loans		1,139,853			1,139,853		—		1,139,853			—		—		—
Securities lending reinvested collateral		1,660,683			1,660,683		71,045		1,589,638			—		—		—
Separate account assets		76,150,197			76,130,173		72,461,882		3,684,492			3,823		—		—
Liabilities
Investment contract liabilities		13,297,887			12,379,779		—		243,143			13,054,743		—		—
Derivative liabilities:
Options		344,808			344,808		—		344,808			—		—		—
Interest rate swaps		376,095			591,999		—		376,095			—		—		—
Currency swaps		1,706			645		—		1,706			—		—		—
Credit default swaps		(1,309	)		13,394		—		(1,309	)		—		—		—
Equity swaps		16,890			16,890		—		16,890			—		—		—
Interest rate futures		6,999			6,999		6,999		—			—		—		—
Equity futures		1,239			1,239		1,239		—			—		—		—
Derivative liabilities total		746,428			975,974		8,238		738,190			—		—		—
Dollar repurchase agreements		214,357			214,357		—		214,357			—		—		—
Payable for securities lending		1,835,122			1,835,122		—		1,835,122			—		—		—
Payable for derivative cash collateral		1,245,534			1,245,534		—		1,245,534			—		—		—
Separate account annuity liabilities		69,914,071			69,915,907		3,069		69,874,047			36,955		—		—

35

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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, 2019 and 2018:

	2019
	Level 1		Level 2		Level 3		Net Asset Value (NAV)		Total
Assets:
Bonds
Industrial and miscellaneous	$	—	$	15,615	$	4,075	$	—	$	19,690
Total bonds		—		15,615		4,075		—		19,690
Preferred stock
Industrial and miscellaneous		—		41		996		—		1,037
Total preferred stock		—		41		996		—		1,037
Common stock
Mutual funds		5,049		—		—		—		5,049
Industrial and miscellaneous		5,178		19		70,543		—		75,740
Total common stock		10,227		19		70,543		—		80,789
Cash equivalents and short-term
Money market mutual funds		1,042,719		—		—		—		1,042,719
Total cash equivalents and short-term		1,042,719		—		—		—		1,042,719
Securities lending reinvested collateral		96		—		—		—		96
Derivative assets		1,153		1,671,609		—		—		1,672,762
Separate account assets		81,255,681		3,293,963		4,271		—		84,553,915
Total assets	$	82,309,876	$	4,981,247	$	79,885	$	—	$	87,371,008
Liabilities:
Derivative liabilities	$	28,589	$	1,633,210	$	—	$	—		1,661,799
Separate account liabilities		2,783		—		—		—		2,783
Total liabilities	$	31,372	$	1,633,210	$	—	$	—	$	1,664,582

	2018
	Level 1		Level 2		Level 3		Net Asset Value (NAV)		Total
Assets:
Bonds
Government	$	—	$	900	$	—	$	—	$	900
Industrial and miscellaneous		—		26,472		8,205		—		34,677
Hybrid securities		—		2,282		—		—		2,282
Total bonds		—		29,654		8,205		—		37,859
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		6		156,572		—		159,331
Total common stock		15,401		6		156,572		—		171,979
Cash equivalents and short-term
Money market mutual funds		1,385,771		—		—		—		1,385,771
Total cash equivalents and short-term		1,385,771		—		—		—		1,385,771
Securities lending reinvested collateral		71,045		—		—		—		71,045
Derivative assets		40,828		1,995,419		—		—		2,036,247
Separate account assets		72,321,900		3,124,101		3,823		—		75,449,824
Total assets	$	73,834,945	$	5,150,781	$	171,597	$	—	$	79,157,323
Liabilities:
Derivative liabilities	$	8,238	$	811,965	$	—	$	—	$	820,203
Separate account liabilities		3,069		—		—		—		3,069
Total liabilities	$	11,307	$	811,965	$	—	$	—	$	823,272

36

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 3 are internally valued using significant unobservable inputs.

Common stock classified as Level 3 are comprised primarily of shares in the 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.

The following tables summarize the changes in assets classified as Level 3 for 2019 and 2018:

	Beginning Balance at January 1, 2019		Transfers in (Level 3)		Transfers out (Level 3)			Total Gains (Losses) Included in Net income (a)			Total Gains (Losses) Included in Surplus (b)
Bonds
RMBS	$	—	$	5	$	—		$	—		$	(5	)
Other		8,206		—		1,829			72			398
Preferred stock		2,997		—		—			—			(2,654	)
Common stock		156,572		—		4,197			(5,874	)		3,296
Separate account assets		3,824		1,264		807			(3	)		(789	)
Total	$	171,598	$	1,269	$	6,833		$	(5,805	)	$	246
	Purchases		Issuances		Sales			Settlements			Ending Balance at December 31, 2019
Bonds
RMBS	$	—	$	—	$	—		$	—		$	—
Other		—		—		—			2,772			4,075
Preferred stock		653		—		—			—			996
Common stock		4,645		6,702		90,600			1			70,543
Separate account assets		848		—		(27	)		93			4,271
Total	$	6,146	$	6,702	$	90,573		$	2,866		$	79,885

(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

37

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

	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	$	—	$	—	$	—	$	(3	)	$	3
RMBS		—		—		—		(26	)		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

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, 2019, the Company held no properties as held-for-sale, where fair value was less than its carrying value. As of December 31, 2019, the Company held one property as held-for sale, where carrying amount of $576 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.

38

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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, 2019
Bonds:
United States Government and agencies	$	4,280,658	$	775,293	$	372	$	5,055,579
State, municipal and other government		1,174,675		125,422		16,509		1,283,588
Hybrid securities		271,982		42,062		1,464		312,580
Industrial and miscellaneous		15,555,330		2,013,749		42,420		17,526,659
Mortgage and other asset-backed securities		4,129,822		351,694		15,727		4,465,789
Total unaffiliated bonds		25,412,467		3,308,220		76,492		28,644,195
Unaffiliated preferred stocks		111,630		6,330		8,115		109,845
	$	25,524,097	$	3,314,550	$	84,607	$	28,754,040

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Unaffiliated common stocks	$	58,311	$	22,545	$	67	$	80,789

	Book Adjusted Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2018
Bonds:
United States Government and agencies	$	6,578,120	$	277,575	$	121,838	$	6,733,857
State, municipal and other government		761,458		35,634		19,456		777,636
Hybrid securities		260,707		13,182		8,417		265,472
Industrial and miscellaneous		15,824,266		731,481		383,320		16,172,427
Mortgage and other asset-backed securities		4,202,584		265,837		65,457		4,402,964
Total unaffiliated bonds		27,627,135		1,323,709		598,488		28,352,356
Unaffiliated preferred stocks		104,793		3,022		10,003		97,812
	$	27,731,928	$	1,326,731	$	608,491	$	28,450,168

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

39

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The carrying amount and estimated fair value of bonds at December 31, 2019, 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.

	2019
December 31:	Carrying Value		Fair Value
Due in one year or less	$	715,115	$	721,686
Due after one year through five years		4,446,683		4,713,256
Due after five years through ten years		5,108,090		5,808,153
Due after ten years		11,012,757		12,935,311
	21,282,645		24,178,406
Mortgage and other asset-backed securities		4,129,822		4,465,789
	$	25,412,467	$	28,644,195

The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2019 and 2018 is as follows:

	2019
	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	$	896	$	4	$	10,513	$	368
State, municipal and other government		37,638		10,695		96,166		5,814
Hybrid securities		18,613		1,464		—		—
Industrial and miscellaneous		349,475		31,808		398,580		10,612
Mortgage and other asset-backed securities		217,019		12,486		503,736		3,241
Total bonds		623,641		56,457		1,008,995		20,035
Preferred stocks-unaffiliated		47,696		8,025		4,511		90
Common stocks-unaffiliated		—		—		739		67
	$	671,337	$	64,482	$	1,014,245	$	20,192

40

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

	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	$	415,707	$	25,873	$	3,771,379	$	95,965
State, municipal and other government		84,973		6,723		192,550		12,733
Hybrid securities		13,815		2,063		114,678		6,354
Industrial and miscellaneous		1,584,834		141,445		4,936,668		241,875
Mortgage and other asset-backed securities		796,932		39,004		828,836		26,453
Total bonds		2,896,261		215,108		9,844,111		383,380
Preferred stocks-unaffiliated		23,579		6,575		38,576		3,428
Common stocks-unaffiliated		—		—		11,083		1,130
	$2,919,840		$221,683		$9,893,770		$387,938

During 2019, there were $4,294 of 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 2018 and 2017, 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.

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 2019, 2018 and 2017 the Company recognized OTTI of $5,546, $4,339 and $7,960, respectively.

41

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The following loan-backed and structured securities were held at December 31, 2019, 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
87266TAJ1	$	1,299	$	1,056	$	243	$	1,056	$	869		3/31/2019
79548KXQ6		295		271		24		271		228		3/31/2019
14984WAA8		1,399		1,295		104		1,295		1,295		6/30/2019
87266TAJ1		587		484		103		484		387		6/30/2019
79548KXQ6		250		250		—		250		209		6/30/2019
41161PPQ0		19,646		18,718		928		18,718		17,362		9/30/2019
36828QQK5		2,493		2,237		256		2,237		1,754		9/30/2019
79548KXQ6		221		203		18		203		58		9/30/2019
126671ZS8		4		4		—		4		4		9/30/2019
585525ES3		491		480		11		480		424		9/30/2019
15032GAC8		2,245		2,245		—		2,245		2,245		9/30/2019
41161PPQ0		18,422		18,368		54		18,368		16,944		12/31/2019
36828QQK5		2,237		1,134		1,103		1,134		1,751		12/31/2019
52108MDN0		3,049		366		2,683		366		1,870		12/31/2019
22541SGE2		432		417		15		417		426		12/31/2019
585525ES3		428		424		4		424		381		12/31/2019
					$	5,546

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, 2019 and 2018 is as follows:

	2019				2018
	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	$	12,486	$	15,728	$	39,004		$40,117
The aggregate related fair value of securities with unrealized losses		217,019		517,385		796,932		850,568

At December 31, 2019 and 2018, 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 199 and 663 securities with a carrying amount of $735,818 and $3,141,523, and an unrealized loss of $64,482 and $221,683. Of this portfolio, 65.2% and 90.7% were investment grade with associated unrealized losses of $19,696 and $165,913, respectively.

At December 31, 2019 and 2018, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 245 and 1,411 securities with a carrying amount of $1,033,633 and $10,269,495 and an unrealized loss of $20,125 and $386,809. Of this portfolio, 91.1% and 89.7% were investment grade with associated unrealized losses of $11,888 and $302,186, respectively.

42

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

At December 31, 2019 and 2018, there were no common stocks that have been in a continuous loss position for greater than or equal to twelve months.

At December 31, 2019 and 2018, respectively, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 7 and 13 securities with a cost of $807 and $12,212 and an unrealized loss of $67 and $1,130.

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, 2019
Bond, amortized cost		2	$	18,813	$	18,169
Loan-backed and structured securities, amortized cost		3		6,719		6,719
Preferred stock, amortized cost		1		996		996
Total		6	$	26,528	$	25,884
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

The tables below present the Company’s gross and net receivable for securities and borrowed money financial statement line items that were subject to offsetting:

December 31, 2019	Gross Amount Recognized		Amount Offset		Net Amount Presented on Financial Statements
Assets:
Receivables for securities	$	120,009	$	101,474	$	18,535
Liabilities:
Borrowed money	$	550,303	$	101,474	$	448,829

43

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

December 31, 2018	Gross Amount Recognized		Amount Offset		Net Amount Presented on Financial Statements
Assets:
Receivables for securities	$	273,566	$	149,607	$	123,959
Liabilities:
Borrowed money	$	353,860	$	149,607	$	204,253

During 2019 and 2018, the Company sold, redeemed or otherwise disposed of 175 and 159 securities as a result of a callable feature which generated investment income of $13,296 and $18,683 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
	2019			2018			2017
Proceeds	$	13,048,390		$	5,928,234		$	18,171,710
Gross realized gains	$	133,153		$	86,626		$	2,375,500
Gross realized losses		(37,677	)		(209,899	)		(151,723	)
Net realized capital gains (losses)	$	95,476		$	(123,273	)	$	2,223,777

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, 2019, 2018 and 2017 of $30,802, $10,795 and $19,101, respectively.

At December 31, 2019 and 2018, the Company had no investments in restructured securities.

44

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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, 2019 and 2018 were as follows:

December 31, 2019
	Farm		Commercial		Total
AAA - AA	$	10,519	$	3,000,254	$	3,010,773
A		31,600		1,812,978		1,844,578
BBB		6,458		217,779		224,237
BB		8,536		4,089		12,625
B		—		4,400		4,400
	$	57,113	$	5,039,500	$	5,096,613

December 31, 2018
	Farm		Commercial		Total
AAA - AA	$	219	$	2,635,041	$	2,635,260
A		42,814		1,745,127		1,787,941
BBB		6,690		157,753		164,443
BB		8,730		4,119		12,849
B		—		—		—
	$	58,453	$	4,542,040	$	4,600,493

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 2019, the Company issued mortgage loans with a maximum interest rate of 5.52% 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, 2019 at the time of origination was 82%. 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 2019 and 2018, the Company did not reduce the interest rate on any outstanding mortgage loans.

45

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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, 2019 and 2018.

			Commercial
	Farm		All Other		Total
December 31, 2019
Recorded Investment (All)
(a) Current	$	57,113	$	4,958,605	$	5,015,718
(b) 30-59 Days Past Due		—		—		—
(c) 60-89 Days Past Due		—		—		—
(d) 90-179 Days Past Due		—		—		—
(e) 180+ Days Past Due		—		80,895		80,895
Accruing interest 90-179 days past due
(a) Recorded investment		—		—		—
(b) Interest accrued		—		—		—
Participant or Co-lender in Mortgage Loan Agreement
(a) Recorded Investment	$	33,658	$	1,483,157	$	1,516,815

			Commercial
	Farm		All Other		Total
December 31, 2018
Recorded Investment (All)
(a) Current	$	50,576	$	4,461,023	$	4,511,599
(b) 30-59 Days Past Due		—		—		—
(c) 60-89 Days Past Due		—		57,005		57,005
(d) 90-179 Days Past Due		7,875		—		7,875
(e) 180+ Days Past Due		—		24,014		24,014
Accruing interest 90-179 days past due
(a) Recorded investment		7,876		—		7,876
(b) Interest accrued		96		—		96
Participant or Co-lender in Mortgage Loan Agreement
(a) Recorded Investment	$	31,524	$	1,286,604	$	1,318,128

At December 31, 2019 and 2018, respectively, multiple mortgage loans with a carrying value of $80,895 and $24,014 were non-income producing for the previous 180 days. There was no accrued interest related to these mortgage loans at December 31, 2019 and 2018. 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, 2019 and 2018, there were no taxes, assessments and other amounts advanced and not included in the mortgage loan total.

At December 31, 2019 and 2018, the Company held no impaired loans with related allowance for credit losses. There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2019 and 2018, respectively. There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2019 and 2018, respectively, that were subject to participant or co-lender mortgage loan agreement for which the Company is restricted from unilaterally foreclosing on the mortgage loans. The average recorded investment in impaired loans during 2019 and 2018 was $0 and $49,118, respectively.

46

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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
	2019		2018			2017
Balance at beginning of period	$	—	$	26,618		$	1,421
Additions, net charged to operations		—		—			26,618
Recoveries in amounts previously charged off		—		(26,618	)		(1,421	)
Balance at end of period	$	—	$	—		$	26,618

As of December 31, 2019 and 2018, 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, 2019, 2018 and 2017, respectively, the Company recognized $0, $852 and $5,359 of interest income on impaired loans. Interest income of $0, $860 and $2,806, respectively, was recognized on a cash basis for the years ended December 31, 2019, 2018 and 2017.

At December 31, 2019 and 2018, the Company held a mortgage loan loss reserve in the AVR of $69,202 and $46,436, 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
	2019			2018				2019			2018
Pacific		25	%		28	%	Apartment		47	%		47	%
South Atlantic		23			22		Retail		19			21
Middle Atlantic		16			16		Office		15			16
E. North Central		9			8		Industrial		15			12
W. North Central		8			8		Other		2			2
W. South Central		8			7		Agricultural		1			1
Mountain		7			6		Medical		1			1
E. South Central		3			4
New England		1			1

47

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

At December 31, 2019, 2018 and 2017, the Company had mortgage loans with a total net admitted asset value of $20,550, $23,144 and $83,445, 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, 2019, 2018 and 2017 related to such restructurings. At December 31, 2019 and 2018, there were no commitments to lend additional funds to debtors owing receivables.

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 $5,078, $26,231 and $4,033 were taken on real estate in 2019, 2018 and 2017, respectively, to write the book value down to the current fair value, and included in net realized capital gains (losses), within the Statements of Operations, for the year ended December 31, 2019.

As of December 31, 2019, there were four properties classified as held for sale. As of December 31, 2018, there were nine 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 2019, one property classified as held for sale was disposed of resulting in a net realized gain of $1,788. During 2018, six properties classified as held for sale were disposed of resulting in a net realized gain of $4,579. These gains and losses were included in net realized capital gains (losses) within the Statements of Operations.

The Company also disposed of other properties during 2019 and 2018 resulting in net realized gains of $9,047 and $26,756, respectively.

The carrying value of the Company’s real estate assets at December 31, 2019 and 2018 was as follows:

	2019		2018
Home office properties	$	45,831	$	52,466
Investment properties		—		18,953
Properties held for sale		5,715		43,027
	$	51,546	$	114,446

Accumulated depreciation on real estate at December 31, 2019 and 2018, was $47,188 and $72,083, respectively.

Other Invested Assets

During 2019, the Company recorded impairments of $5,488, $3,363, and $13,867 throughout 2019, 2018 and 2017. 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.

48

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

These write-downs are included in net realized capital gains (losses) within the Statements of Operations.

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 $125,036, which resulted in a realized gain of $19,443.

Tax Credits

At December 31, 2019, the Company had ownership interests in forty-six LIHTC investments with a carrying value of $58,163. The remaining years of unexpired tax credits ranged from one to twelve, 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 2020 to 2029 is $26,728. Tax credits recognized in 2019 were $81,690, and other tax benefits recognized in 2019 were $2,795. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

At December 31, 2018, the Company had ownership interests in forty-seven LIHTC investments with a carrying value of $33,212. 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. Tax credits recognized during 2018 was $76,141. 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, 2019 and 2018:

		December 31, 2019
Description of State Transferable and Non- transferable Tax Credits	State	Carrying Value		Unused Amount*
Low-Income Housing Tax Credits	MA	$	2,683	$	5,024
Economic Redevelopment and Growth Tax Credits	NJ		5,281		20,948
Total		$	7,964	$	25,972

		December 31, 2018
Description of State Transferable and Non- transferable Tax Credits	State	Carrying Value		Unused Amount
Low-Income Housing Tax Credits	MA	$	3,880	$	6,220
Economic Redevelopment and Growth Tax Credits	NJ		3,994		20,948
Total		$	7,874	$	27,168

* 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.

49

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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.

Derivatives

Amounts disclosed in this Derivatives section do not include derivatives utilized in the hedging of variable annuity guarantees in accordance with SSAP 108. Please see the subsequent section “Derivatives Hedging Variable Annuity Guarantees” for results associated with those 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, 2019 and 2018 was as follows:

	2019			2018
Fair value - positive	$	647,378		$	2,285,546
Fair value - negative		(646,157	)		(934,798	)

At December 31, 2019, 2018 and 2017, the Company has recorded unrealized gains (losses) of ($257,972), $858,229 and ($131,678), 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 2019, 2018 and 2017 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 24 years for forecasted hedge transactions. At December 31, 2019 and 2018, 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, 2019 and 2018, the Company has accumulated deferred gains in the amount of $2,334 and $0, 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 2020.

50

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

Summary of realized gains (losses) by derivative type for the years ended December 31, 2019, 2018 and 2017:

	2019			2018			2017
Options:
Calls	$	(15,424	)	$	59,693		$	2,473
Caps		—			—			(1,203	)
Puts		—			(26,491	)		(7,634	)
Total options	$	(15,424	)	$	33,202		$	(6,364	)
Swaps:
Interest rate	$	95,162		$	(299,024	)	$	307,519
Credit		(3,099	)		(14,288	)		8,209
Total return		(611,814	)		(205,341	)		(1,443,432	)
Total swaps	$	(519,751	)	$	(518,653	)	$	(1,127,704	)
Futures—net positions		535,875			(310,914	)		60,205
Lehman settlements		106			537			1,195
Total realized gains (losses)	$	806		$	(795,828	)	$	(1,072,668	)

The average estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2019 and 2018:

	Asset(1)				Liability(1)
	2019		2018		2019			2018
Derivative component of RSATs
Credit default swaps	$	56,455	$	55,387	$	(9,504	) $		(6,341	)
Interest rate swaps		3,225		1,650		—			8,598

⁽¹⁾ Asset and liability classification is based on the positive (asset) or negative (liability) book/adjusted carrying value of each derivative.

The estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2019 and 2018:

	Asset(1)				Liability(1)
	2019		2018		2019			2018
Derivative component of RSATs
Credit default swaps	$	59,599	$	43,455	$	(11,589	)	$	(1,309	)
Interest rate swaps		3,972		2,188		—			—
Total	$	63,571	$	45,643	$	(11,589	)	$	(1,309	)

⁽¹⁾ Asset and liability classification is based on the positive (asset) or negative (liability) book/adjusted carrying value of each derivative.

51

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The net realized gains (losses) on the derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2019, 2018 and 2017:

	2019			2018			2017
Derivative component of RSATs
Credit default swaps	$	(3,099	)	$	(4,476	)	$	8,209
Interest rate swaps		—			(8,207	)		(59,357	)
Total	$	(3,099	)	$	(12,683	)	$	(51,148	)

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.

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, 2019 and 2018:

			2019
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)			$	6,522	$	441,000		1.9
Credit default swaps referencing indices				108		10,000		39.9
Subtotal				6,630		451,000		2.7
BBB		2
Single name credit default swaps (3)				41,004		1,781,035		1.8
Credit default swaps referencing indices				23,093		1,192,624		2.9
Subtotal				64,097		2,973,659		2.3
BB		3
Single name credit default swaps (3)				462		50,000		1.2
Subtotal				462		50,000		1.2
Total			$	71,189	$	3,474,659		2.3

⁽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.

52

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

			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)			$	5,534		$	468,085		2.6
Credit default swaps referencing indices				(109	)		10,000		40.9
Subtotal				5,425			478,085		3.4
BBB		2
Single name credit default swaps (3)				32,228			1,905,450		2.7
Credit default swaps referencing indices				7,806			907,000		3.3
Subtotal				40,034			2,812,450		2.9
BB		3
Single name credit default swaps (3)				2,427			145,500		2.7
Subtotal				2,427			145,500		2.7
B		4
Single name credit default swaps (3)				(2,809	)		27,000		2.7
Subtotal				(2,809	)		27,000		2.7
CCC and lower		5
Single name credit default swaps (3)				(312	)		5,000		1.0
Subtotal				(312	)		5,000		1.0
Total			$	44,765		$	3,468,035		2.9

⁽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, 2019, the maximum amounts of potential future recoveries available to offset the $3,474,659 from the table above were $0. At December 31, 2018, the maximum amounts of potential future recoveries available to offset the $3,468,035 from the table above were $0.

53

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

At December 31, 2019 and 2018, 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
	2019			2018			2019			2018
Derivative assets:
Credit default swaps	$	2,402,624		$	2,509,467		$	59,599		$	52,360
Currency swaps		88,501			129,622			8,929			15,288
Equity futures		—			22			686			20,189
Equity swaps		209,341			3,706,430			55			281,457
Interest rate futures		—			38			—			20,639
Interest rate swaps		33,735			24,881,535			5,147			710,817
Options		21,196,796			23,094,442			311,739			996,427
Derivative liabilities:
Credit default swaps		1,446,000			1,318,568			(3,740	)		(1,309	)
Currency swaps		142,704			18,459			2,279			1,706
Equity futures		(12	)		(1	)		5,673			1,239
Equity swaps		4,823,034			145,269			211,606			16,890
Interest rate futures		—			(19	)		—			6,999
Interest rate swaps		3,366,493			15,261,493			17,420			376,095
Options		(3,676,923	)		(3,815,570	)		151,696			344,808

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

Derivatives Hedging Variable Annuity Guarantees

The hedged obligation consists of guaranteed benefits on variable annuity contracts and resembles a long dated put option where claim payment is made whenever account value is less than a guaranteed amount, adjusted for applicable fees. Changes in interest rates impact the present value of future product cash flows (discount rate) as well as the value of investments comprising the account value to be assessed against the guarantee. Under this VM-21 compliant clearly defined hedging strategy (CDHS), interest rate risk may be hedged by a duration matched portfolio of interest sensitive derivatives such as treasury bond forwards, treasury futures, interest rate swaps, interest rate swaptions or treasury future options. The hedging strategy is unchanged from the prior reporting period, and the total return on the designated portfolio of derivatives has been highly effective in covering the interest rate risk (rho) of the hedged obligation. Hedge effectiveness is measured in accordance with the requirements outlined under SSAP 108 and entails assessment of the total return on the designated portfolio of derivatives against changes in the fair value of the hedged obligation due to interest rate movements on a cumulative basis.

54

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

Scheduled amortization for SSAP 108 derivatives as of December 31, 2019 is as follows:

Amortization Year	Deferred Assets		Deferred Liabilities
2020	$	68,503	$	18,702
2021		60,234		18,702
2022		39,808		18,702
2023		39,808		18,702
2024		39,808		18,702
2025		39,808		18,702
2026		29,176		18,702
2027		22,720		18,702
2028		17,393		18,702
2029		20,155		14,028
Total	$	377,413	$	182,346

As discussed in Note 2 and 3, the Company elected to adopt SSAP 108 effective July 1, 2019.

The following table is a reconciliation of the total deferred balance of SSAP 108 derivatives from the date of adoption through December 31, 2019. The beginning deferred balance was the deferral under a previous permitted practice described in Note 2.

1.	Total Deferred Balance, July 1, 2019	$	189,601
2.	Current Year Amortization		19,002
3.	Current Year Deferred Recognition		(24,468	)
4.	Ending Deferred Balance [1-(2+3)]	$	195,067

The following tables provide information regarding SSAP 108 hedging instruments:

	12/31/2019			7/1/2019
Amortized cost	$	(51	)	$	(53	)
Fair value	$	74,063		$	447,385

	Net Investment Income			Realized Gain (Loss)			Unrealized Gain (Loss)			Total
Derivative performance	$	23,639		$	495,410		$	(373,324	)	$	145,725
SSAP 108 Adjustments
Portion of the derivative performance attributed to natural offset		—			(184,385	)		14,192			(170,193	)
Deferred		(23,639	)		(311,025	)		359,132			24,468

55

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

Prior year fair value of hedged item	$	(2,294,125	)
Current year fair value of hedged item		(2,573,520	)
Change in fair value attributable to interest rates	$	(279,395	)
Portion of the fair value change attributed to the hedged risk	$	(232,394	)

Restricted Assets

The following tables show the pledged or restricted assets as of December 31, 2019 and 2018, respectively:

	Gross Restricted (Admitted & Nonadmitted) 2019
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	$	1,246,827	$	—	$	—	$	—	$	1,246,827
Subject to repurchase agreements		113,025		—		—		—		113,025
Subject to dollar repurchase agreements		550,333		—		—		—		550,333
FHLB capital stock		42,800		—		—		—		42,800
On deposit with states		43,813		—		—		—		43,813
Pledged as collateral to FHLB (including assets backing funding agreements)		1,259,059		—		—		—		1,259,059
Pledged as collateral not captured in other categories		736,696		—		—		—		736,696
Other restricted assets		1,170,136		—		—		—		1,170,136
Total restricted assets	$	5,162,689	$	—	$	—	$	—	$	5,162,689

	Gross (Admitted & Nonadmitted) Restricted									Percentage
Restricted Asset Category	Total From Prior Year (2018)		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	$	1,842,557	$	(595,730	)	$	—	$	1,246,827		0.96	%		0.96	%
Subject to repurchase agreements		205,405		(92,380	)		—		113,025		0.09	%		0.09	%
Subject to dollar repurchase agreements		371,260		179,073			—		550,333		0.42	%		0.42	%
FHLB capital stock		133,400		(90,600	)		—		42,800		0.03	%		0.03	%
On deposit with states		43,908		(95	)		—		43,813		0.03	%		0.03	%
Pledged as collateral to FHLB (including assets backing funding agreements)		4,405,503		(3,146,444	)		—		1,259,059		0.97	%		0.97	%
Pledged as collateral not captured in other categories		687,891		48,805			—		736,696		0.56	%		0.56	%
Other restricted assets		1,172,934		(2,798	)		—		1,170,136		0.90	%		0.90	%
Total restricted assets	$	8,862,858	$	(3,700,169	)	$	—	$	5,162,689		3.96	%		3.96	%

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

56

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The following tables show the pledged or restricted assets in other categories as of December 31, 2019 and 2018, respectively:

	Gross (Admitted & Nonadmitted) Restricted 2019
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	$	728,018	$	—	$	—	$	—	$	728,018
Secured funding agreements		6,357		—		—		—		6,357
AMBAC		2,321		—		—		—		2,321
Total	$	736,696	$	—	$	—	$	—	$	736,696

	Gross (Admitted & Nonadmitted) Restricted							Percentage
Description of Assets	Total From Prior Year (2018)		Increase/ (Decrease)			Total Current Year Admitted Restricted		Gross (Admitted & Nonadmitted) Restricted to Total Assets			Admitted Restricted to Total Admitted Assets
Derivatives	$	638,025	$	89,993		$	728,018		0.56	%		0.56	%
Secured funding agreements		46,723		(40,366	)		6,357		0.00	%		0.00	%
AMBAC		3,143		(822	)		2,321		0.00	%		0.00	%
Total	$	687,891	$	48,805		$	736,696		0.56	%		0.56	%

The following tables show the collateral received and reflected as assets within the financial statements as of December 31, 2019 and 2018:

2019
Collateral Assets	Carrying Value		Fair Value		Total Assets (Admitted and Nonadmitted)			% of CV to Total Admitted Assets
Cash	$	898,267	$	898,267		2.02	%		2.02	%
Securities lending collateral assets		1,246,827		1,246,827		2.80			2.80
Other		35,199		35,199		0.08			0.08
Total collateral assets	$	2,180,293	$	2,180,293		4.90	%		4.90	%

	Amount		% of Liability to Total Liabilities
Recognized obligation to return collateral asset	$	2,181,672		5.75	%

57

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

2018
Collateral Assets	Carrying Value		Fair Value		Total Assets (Admitted and Nonadmitted)			% of CV to Total Admitted Assets
Cash	$	1,453,892	$	1,453,892		3.05	%		3.06	%
Securities lending collateral assets		1,835,122		1,835,122		3.85			3.87
Other		5,999		5,999		0.01			0.01
Total collateral assets	$	3,295,013	$	3,295,013		6.91	%		6.94	%

	Amount		% of Liability to Total Liabilities
Recognized obligation to return collateral asset	$	3,296,139		8.01	%

Net Investment Income

Detail of net investment income is presented below:

	Year Ended December 31
	2019		2018		2017
Income:
Bonds	$	1,185,232	$	1,276,258	$	1,660,465
Preferred stocks		6,230		8,251		6,160
Common stocks		143,184		100,616		214,463
Mortgage loans on real estate		226,766		204,434		245,562
Real estate		21,899		20,190		20,862
Policy loans		67,366		69,773		72,733
Cash, cash equivalents and short-term investments		59,292		39,557		24,772
Derivatives		16,562		32,673		82,507
Other invested assets		49,846		73,164		295,840
Gross investment income		1,776,377		1,824,916		2,623,364
Less: investment expenses		171,238		205,794		172,388
Net investment income before amortization of IMR		1,605,139		1,619,122		2,450,976
Amortization of IMR		39,186		48,050		65,306
Net investment income	$	1,644,325	$	1,667,172	$	2,516,282

58

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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
	2019			2018			2017
Bonds	$	62,739		$	(135,605	)	$	2,204,142
Preferred stocks		1,933			1,539			535
Common stocks		25,384			(3,690	)		(1,978	)
Mortgage loans on real estate		388			(25,696	)		93,149
Real estate		5,756			5,104			(4,101	)
Cash, cash equivalents and short-term investments		239			(51	)		(202	)
Derivatives		311,724			(796,365	)		(1,073,863	)
Variable annuity reserve hedge offset		(159,833	)		—			—
Other invested assets		82,951			113,854			118,984
Change in realized capital gains (losses), before taxes		331,281			(840,910	)		1,336,666
Federal income tax effect		(43,047	)		4,006			(197,937	)
Transfer from (to) interest maintenance reserve		(47,710	)		122,772			(1,713,779	)
Net realized capital gains (losses) on investments	$	240,524		$	(714,132	)	$	(575,050	)

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
	2019			2018			2017
Bonds	$	48,719		$	34,184		$	65,937
Preferred stocks		(2,504	)		(859	)		(564	)
Common stocks		5,052			1,874			1,468
Affiliated entities		447,273			157,530			398,521
Mortgage loans on real estate		—			26,618			(25,197	)
Cash equivalents and short-term investments		(31	)		145			6
Derivatives		(761,219	)		1,093,543			(66,675	)
Other invested assets		18,228			32,164			182,596
Change in unrealized capital gains (losses), before taxes		(244,482	)		1,345,199			556,092
Taxes on unrealized capital gains (losses)		(82,980	)		(54,824	)		123,327
Change in unrealized capital gains (losses), net of tax	$	(327,462	)	$	1,290,375		$	679,419

59

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

6. Premium and Annuity Considerations Deferred and Uncollected

Deferred and uncollected life premium and annuity considerations, net of reinsurance, at December 31, 2019 and 2018 were as follows:

	2019				2018
	Gross		Net of Loading		Gross		Net of Loading
Life and annuity:
Ordinary first-year business	$	1,003	$	168	$	1,077	$	173
Ordinary renewal business		278,922		256,376		94,286		84,273
Group life direct business		17,843		9,477		16,474		7,911
Credit direct business		9		9		13		13
	$	297,777	$	266,030	$	111,850	$	92,370

7. Policy and Contract Attributes

Insurance Liabilities

Policy reserves, deposit-type contracts and policy claims at December 31, 2019 and 2018 were as follows:

	Year Ended December 31
	2019		2018
Life insurance reserves	$	11,472,311	$	12,368,680
Annuity reserves and supplementary contracts with life contingencies		14,094,715		14,244,431
Accident and health reserves (including long term care)		670,910		681,838
Total policy reserves	$	26,237,936	$	27,294,949
Deposit-type contracts		591,570		967,757
Policy claims		479,226		527,901
Total policy reserves, deposit-type contracts and claim liabilities	$	27,308,732	$	28,790,607

Life Insurance Reserves

The aggregate policy reserves for life insurance policies are based upon the 1941, 1958, 1980, 2001 and 2017 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 or Actuarial Guideline XXXVIII. Effective July 1, 2017, term insurance issued follows Valuation Manual section 20 (VM-20) reserve requirements.

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

60

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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. Effective July 1, 2017, for substandard term insurance policies, per VM-20 requirements, the substandard rating is applied to the reserve mortality. 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.

As of December 31, 2019 and 2018, the Company had insurance in force aggregating $59,712,049 and $78,179,488, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the IID. The Company established policy reserves of $1,608,260 and $1,667,131 to cover these deficiencies as of December 31, 2019 and 2018, respectively.

Participating life insurance policies were issued by the Company in prior years 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, 2019 and 2018.

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 GICs and funding agreements classified as life-type contracts as defined in SSAP No. 50, Classifications of Insurance or Managed Care Contracts. 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 VM-21. 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 covers all variable annuity products. 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 stochastic reserves plus the additional standard projection amount.

61

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

Both the stochastic reserves and the standard projection are determined as the conditional tail expectation (CTE)-70 of the scenario reserves. To determine the CTE-70 values, the Company used 1,000 of the pre-packaged scenarios developed by the American Academy of Actuaries (AAA) and Society of Actuaries. The stochastic reserves uses prudent estimate assumptions based on Company experience, while the standard projection uses the assumptions prescribed in VM-21 for determining the additional standard projection amount.

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.

At December 31, 2019 and 2018, the Company had no premium deficiency reserve related to accident and health policies.

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.

62

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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, 2019
2019	$	—	$	276,850	$	201,741	$	75,109
2018 and prior		135,241		2,690		86,381		51,550
		135,241	$	279,540	$	288,122		126,659
Active life reserve	$	632,180					$	623,147
Total accident and health reserves	$	767,421					$	749,806

	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

The change in the Company’s unpaid claims reserve was $2,690 and ($21,859) for the years ended December 31, 2019 and 2018, respectively, for health claims that were incurred prior to those balance sheets dates. The change in 2019 was in normal range. The change in 2018 resulted primarily from variances in the estimated frequency of claims and claim severity.

Activity in the liability for unpaid claims adjustment expense is summarized as follows:

	Liability Beginning of Year		Incurred			Paid		Liability End of Year
Year ended December 31, 2019
2019	$	—	$	17,934		$	17,219	$	715
2018 and prior		3,091		(1,017	)		1,584		490
	$	3,091	$	16,917		$	18,803	$	1,205
Year ended December 31, 2018
2018	$	—	$	16,859		$	14,951	$	1,908
2017 and prior		3,279		(325	)		1,771		1,183
	$    3,279		$16,534			$    16,722		$    3,091

63

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The Company did not increase or decrease the claim adjustment expense provision for insured events of prior years during 2019.

Deposit-type Contracts

Tabular interest on funds not involving life contingencies has 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.

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, deposit fund and life products. There may be certain restrictions placed upon the amount of funds that can be withdrawn without penalty. The amount of reserves on annuity and deposit fund products, by withdrawal characteristics, is summarized as follows:

	December 31 2019
Individual Annuities:	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	541,753	$	561	$	—	$	542,314		1	%
At book value less surrender charge of 5% or more		907,255		—		—		907,255		1
At fair value		3,842		—		49,151,231		49,155,073		80
Total with adjustment or at fair value		1,452,850		561		49,151,231		50,604,642		82
At book value without adjustment (minimal or no charge or adjustment)		7,800,086		—		—		7,800,086		13
Not subject to discretionary withdrawal provision		2,498,084		—		264,646		2,762,730		5
Total individual annuity reserves		11,751,020		561		49,415,877		61,167,458		100	%
Less reinsurance ceded		2,833,026		—		—		2,833,026
Net individual annuities reserves	$	8,917,994	$	561	$	49,415,877	$	58,334,432
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		8		—		—		8

64

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

	December 31 2019
Group Annuities:	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	1,107,433	$	18,568	$	—	$	1,126,001		3	%
At book value less surrender charge of 5% or more		235		—		—		235		—
At fair value		—		—		29,101,801		29,101,801		84
Total with adjustment or at fair value		1,107,668		18,568		29,101,801		30,228,037		87
At book value without adjustment (minimal or no charge or adjustment)		2,475,633		—		—		2,475,633		7
Not subject to discretionary withdrawal provision		2,189,501		—		38,174		2,227,675		6
Total group annuities reserves		5,772,802		18,568		29,139,975		34,931,345		100	%
Less reinsurance ceded		377,165		—		—		377,165
Net group annuities reserves	$	5,395,637	$	18,568		$29,139,975	$	34,554,180
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		—		—		—		—

	December 31 2019
Deposit-type contracts (no life contingencies):	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	4,789	$	—	$	—	$	4,789		1	%
At book value less surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		—		—
Total with adjustment or at fair value		4,789		—		—		4,789		1
At book value without adjustment (minimal or no charge or adjustment)		775		—		—		775		—
Not subject to discretionary withdrawal provision		375,756		48,782		9,686		434,224		99
Total deposit-type contracts		381,320		48,782		9,686		439,788		100	%
Less reinsurance ceded		8,666		—		—		8,666
Net deposit-type contracts	$	372,654	$	48,782	$	9,686	$	431,122
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		—		—		—		—

65

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

Reconcililation to the Annual Statement:	Amount
Life & Accident & Health Annual Statement:
Exhibit 5, Annuities section, total (net)	$	13,457,795
Exhibit 5, Supp contracts with life contingencies section, total (net)		636,920
Exhibit 7, Deposit-type contracts, net balance at the end of the current year after reinsurance		591,570
Subtotal		14,686,285
Separate Accounts Annual Statement:
Exhibit 3, Annuities section, total		78,311,341
Exhibit 3, Supp contracts with life contingencies section, total		263,640
Other contract deposit funds		58,468
Subtotal		78,633,449
Combined total	$	93,319,734

	December 31 2018
Individual Annuities:	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	528,969	$	1,279	$	—	$	530,248		1	%
At book value less surrender charge of 5% or more		501,977		—		—		501,977		1
At fair value		97,877		—		44,202,566		44,300,443		77
Total with adjustment or at fair value		1,128,823		1,279		44,202,566		45,332,668		79
At book value without adjustment (minimal or no charge or adjustment)		8,701,240		—		—		8,701,240		15
Not subject to discretionary withdrawal provision		3,209,969		—		214,506		3,424,475		6
Total individual annuity reserves		13,040,032		1,279		44,417,072		57,458,383		100	%
Less reinsurance ceded		2,819,439		—		—		2,819,439
Net individual annuity reserves	$	10,220,593	$	1,279	$	44,417,072	$	54,638,944
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		—		—		—		—

66

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

	December 31 2018
Group Annuities:	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	653,206	$	25,742	$	—	$	678,948		2	%
At book value less surrender charge of 5% or more		127		—		—		127		—
At fair value		—		—		25,390,084		25,390,084		82
Total with adjustment or at fair value		653,333		25,742		25,390,084		26,069,159		84
At book value without adjustment (minimal or no charge or adjustment)		2,543,431		—		—		2,543,431		8
Not subject to discretionary withdrawal provision		2,273,676		—		31,585		2,305,261		8
Total group annuity reserves		5,470,440		25,742		25,421,669		30,917,851		100	%
Less reinsurance ceded		398,265		—		—		398,265
Net group annuity reserves	$	5,072,175	$	25,742	$	25,421,669	$	30,519,586
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		—		—		—		—

	December 31 2018
Deposit-type contracts (no life contingencies):	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	4,718	$	—	$	—	$	4,718		1	%
At book value less surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		—		—
Total with adjustment or at fair value		4,718		—		—		4,718		1
At book value without adjustment (minimal or no charge or adjustment)		761		—		—		761		—
Not subject to discretionary withdrawal provision		731,816		38,792		8,286		778,894		99
Total deposit-type contracts		737,295		38,792		8,286		784,373		100	%
Less reinsurance ceded		8,174		—		—		8,174
Net deposit-type contracts	$	729,121	$	38,792	$	8,286	$	776,199
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		—		—		—		—

67

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

	Amount
Reconcililation to the Annual Statement:
Life & Accident & Health Annual Statement:
Exhibit 5, Annuities section, total (net)	$	14,401,938
Exhibit 5, Supp contracts with life contingencies section, total (net)		652,194
Exhibit 7, Deposit-type contracts, net balance at the end of the current year after reinsurance		967,757
Subtotal		16,021,889
Separate Accounts Annual Statement:
Exhibit 3, Annuities section, total		69,652,375
Exhibit 3, Supp contracts with life contingencies section, total		213,387
Other contract deposit funds		47,078
Subtotal		69,912,840
Combined total	$	85,934,729

The amount of reserves on life products, by withdrawal characteristics, is summarized as follows:

	December 31 2019
	General Account						Separate Account—Guaranteed and Nonguaranteed
	Account Value		Cash Value		Reserve		Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Term policies with cash value	$	127,240	$	174,114	$	294,514	$	—	$	—	$	—
Universal life		8,928,502		8,652,284		12,290,308		—		—		—
Universal life with secondary guarantees		3,583,462		3,496,533		8,994,292		—		—		—
Indexed universal life with secondary guarantees		138,016		98,875		127,312		—		—		—
Other permanent cash value life insurance		272,553		1,009,143		1,542,059		—		—		—
Variable universal life		42,258		41,415		924,560		4,151,215		4,149,688		5,473,280
Not subject to discretionary withdrawal or no cash values
Term policies without cash value		—		—		7,946,544		—		—		—
Accidental death benefits		—		—		36,530		—		—		—
Disability- active lives		—		—		31,521		—		—		—
Disability- disabled lives		—		—		55,431		—		—		—
Miscellaneous reserves		—		—		2,244,758		—		—		—
Total (gross)		13,092,031		13,472,364		34,487,829		4,151,215		4,149,688		5,473,280
Reinsurance ceded		4,155,647		4,155,691		23,015,518		—		—		—
Total (net)	$	8,936,384	$	9,316,673	$	11,472,311	$	4,151,215	$	4,149,688	$	5,473,280

Reconcililation to the Annual Statement:	Amount
Life & Accident & Health Annual Statement:
Exhibit 5, Life insurance section, total (net)	$	10,549,729
Exhibit 5, Accidental death benefits section total (net)		8,050
Exhibit 5, Disability—active lives section, total (net)		7,441
Exhibit 5, Disability—disabled lives section, total (net)		38,391
Exhibit 5, Miscellaneous reserves section, total (net)		868,700
Subtotal		11,472,311
Separate Accounts Annual Statement:
Exhibit 3, Life insurance section, total		5,473,280
Subtotal		5,473,280
Combined total	$	16,945,591

68

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

	December 31 2018
	General Account						Separate Account—Guaranteed and Nonguaranteed
	Account Value		Cash Value		Reserve		Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Term policies with cash value	$	119,933	$	164,337	$	278,907	$	—	$	—	$	—
Universal life		8,754,568		8,450,724		12,226,647		—		—		—
Universal life with secondary guarantees		3,675,642		3,595,227		8,938,774		—		—		—
Indexed universal life with secondary guarantees		128,144		83,151		117,301		—		—		—
Other permanent cash value life insurance		262,629		1,033,222		1,574,909		—		—		—
Variable universal life		46,724		45,526		983,103		3,882,674		3,880,143		5,068,091
Not subject to discretionary withdrawal or no cash values
Term policies without cash value		—		—		7,708,101		—		—		—
Accidental death benefits		—		—		37,849		—		—		—
Disability- active lives		—		—		32,726		—		—		—
Disability- disabled lives		—		—		57,672		—		—		—
Miscellaneous reserves		—		—		2,139,264		—		—		—
Total (gross)		12,987,640		13,372,187		34,095,253		3,882,674		3,880,143		5,068,091
Reinsurance ceded		4,106,880		4,106,881		22,536,273		—		—		—
Total (net)	$	8,880,760	$	9,265,306	$	11,558,980	$	3,882,674	$	3,880,143	$	5,068,091

Reconcililation to the Annual Statement:	Amount
Life & Accident & Health Annual Statement:
Exhibit 5, Life insurance section, total (net)	$	10,812,154
Exhibit 5, Accidental death benefits section total (net)		7,954
Exhibit 5, Disability—active lives section, total (net)		8,226
Exhibit 5, Disability—disabled lives section, total (net)		40,261
Exhibit 5, Miscellaneous reserves section, total (net)		1,500,085
Subtotal		12,368,680
Separate Accounts Annual Statement:
Exhibit 3, Life insurance section, total		5,068,091
Subtotal		5,068,091
Combined total	$	17,436,771

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.

69

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

Information regarding the separate accounts of the Company as of and for the years ended December 31, 2019, 2018 and 2017 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, 2019	$	—	$	—	$	11,868	$	8,778,459	$	8,790,327
Reserves for separate accounts as of December 31, 2019 with assets at:
Fair value	$	—	$	49,425	$	18,485	$	83,386,230	$	83,454,140
Amortized cost		—		652,587		—		—		652,587
Total as of December 31, 2019	$	—	$	702,012	$	18,485	$	83,386,230	$	84,106,727
Reserves for separate accounts by withdrawal characteristics as of
December 31, 2019:
With fair value adjustment	$	—	$	19,128	$	—	$	—	$	19,128
At fair value		—		—		—		83,073,724		83,073,724
At book value without fair value adjustment and with current surrender charge of less than 5%		—		652,587		—		—		652,587
Subtotal		—		671,715		—		83,073,724		83,745,439
Not subject to discretionary withdrawal		—		30,297		18,485		312,506		361,288
Total separate account reserve liabilities at December 31, 2019	$	—	$	702,012	$	18,485	$	83,386,230	$	84,106,727

	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	$	8,859,114	$	8,870,846
Reserves for separate accounts as of December 31, 2018 with assets at:
Fair value	$	—	$	51,005	$	14,808	$	74,268,245	$	74,334,058
Amortized cost		—		646,872		—		—		646,872
Total as of December 31, 2018	$	—	$	697,877	$	14,808	$	74,268,245	$	74,980,930
By withdrawal characteristics:
Reserves for separate accounts by withdrawal characteristics as of
December 31, 2018:
With fair value adjustment	$	—	$	27,021	$	—	$	—	$	27,021
At fair value		—		—		—		74,013,868		74,013,868
At book value without fair value adjustment and with current surrender charge of less than 5%		—		646,872		—		—		646,872
Subtotal		—		673,893		—		74,013,868		74,687,761
Not subject to discretionary withdrawal		—		23,984		14,808		254,377		293,169
Total separate account reserve liabilities at December 31, 2018	$	—	$	697,877	$	14,808	$	74,268,245	$	74,980,930

70

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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	$	—	$	80	$	10,782	$	8,536,011	$	8,546,873
Reserves for separate accounts as of December 31, 2017 with assets at:
Fair value	$	—	$	57,965	$	19,569	$	83,794,485	$	83,872,019
Amortized cost		—		633,003		—		—		633,003
Total as of December 31, 2017	$	—	$	690,968	$	19,569	$	83,794,485	$	84,505,022
Reserves for separate accounts by withdrawal characteristics as of December 31, 2017:
With fair value adjustment	$	—	$	32,619$		—	$	—	$	32,619
At fair value		—		—		—		83,719,277		83,719,277
At book value without fair value adjustment and with current surrender charge of less than 5%		—		633,003		—		—		633,003
Subtotal		—		665,622		—		83,719,277		84,384,899
Not subject to discretionary withdrawal		—		25,346		19,569		75,208		120,123
Total separate account reserve liabilities at December 31, 2017	$	—	$	690,968	$	19,569	$	83,794,485	$	84,505,022

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

	Year Ended December 31
	2019			2018			2017
Transfer as reported in the summary of operations of the separate accounts statement:
Transfers to separate accounts	$	9,249,559		$	9,208,119		$	8,751,721
Transfers from separate accounts		(12,987,554	)		(13,130,804	)		(11,815,503	)
Net transfers from separate accounts		(3,737,995	)		(3,922,685	)		(3,063,782	)
Miscellaneous reconciling adjustments		(130,622	)		(152,560	)		444,099
Net transfers as reported in the summary of operations of the life, accident and health annual statement	$	(3,868,617	)	$	(4,075,245	)	$	(2,619,683	)

71

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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, 2019 and 2018, the Company’s separate account statement included legally insulated assets of $85,698,798 and $76,754,148, respectively. The assets legally insulated from general account claims at December 31, 2019 and 2018 are attributed to the following products:

	2019		2018
Group annuities	$	27,466,046	$	23,941,313
Variable annuities		52,062,801		46,955,172
Fixed universal life		684,149		695,569
Variable universal life		4,124,798		3,737,005
Variable life		1,338,413		1,409,360
Modified separate accounts		9,646		4,813
Registered market value annuity product—SPL		12,945		10,916
Total separate account assets	$	85,698,798	$	76,754,148

At December 31, 2019 and 2018, the Company held separate account assets not legally insulated from the general account in the amount of $21,891 and $29,244, 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 $542,322, $538,628, $525,773, $504,689, and $456,558, to the general account in 2019, 2018, 2017, 2016, and 2015, respectively. During the years ended December 31, 2019, 2018, 2017, 2016, and 2015 the general account of the Company had paid $73,992, $68,367, $69,207, $103,800, and $250,471 respectively, toward separate account guarantees.

At December 31, 2019 and 2018, the Company reported guaranteed separate account assets at amortized cost in the amount of $653,181 and $643,109, respectively, based upon the prescribed practice granted by the State of Iowa as described in Note 2. These assets had a fair value of $719,048 and $679,964 at December 31, 2019 and 2018, respectively, which would have resulted in an unrealized gain of $65,867 and $36,855, 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.

72

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

Premiums earned reflect the following reinsurance amounts:

	Year Ended December 31
	2019			2018			2017
Direct premiums	$	14,573,402		$	13,848,720		$	13,209,093
Reinsurance assumed—non affiliates		1,225,065			1,268,615			1,351,628
Reinsurance assumed—affiliates		106,627			125,367			325,332
Reinsurance ceded—non affiliates		(2,436,179	)		(3,044,184	)		(15,104,247	)
Reinsurance ceded—affiliates		(1,322,809	)		(1,385,000	)		(3,295,974	)
Net premiums earned	$	12,146,106		$	10,813,518		$	(3,514,168	)

The Company received reinsurance recoveries in the amount of $3,943,015, $3,729,097 and $3,736,461, during 2019, 2018 and 2017, respectively. At December 31, 2019 and 2018, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $1,146,686 and $1,061,987. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2019 and 2018 of $42,515,411 and $42,224,573, respectively, of which $21,356,465 and $20,685,636 were ceded to affiliates.

During 2019, 2018 and 2017, amortization of deferred gains associated with previously transacted reinsurance agreements was released into income in the amount of $219,496 ($142,972 after tax), $514,911 ($335,855 after tax) and $90,556 ($62,716 after tax), respectively.

During 2019, 2018 and 2017, the Company obtained letters of credit of $26,675, $56,994 and $55,017, 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.

Effective January 1, 2019, the Company recaptured term insurance business of a reinsurance treaty with an affiliate, LIICA Re II, Inc. The universal life with secondary guarantees remained reinsured under the treaty. The Company received cash of $15,079, recaptured $67,590 in policyholder reserves, $371 of claim reserves, and net due, deferred and advance premiums of $2,279. The transaction resulted in a pre-tax loss of $50,603, which has been included in the Statements of Operations. In addition, the Company released into income a previously deferred unamortized gain resulting from the original cession of this business to LIICA Re II in the amount of $13,826 with a corresponding charge to unassigned surplus.

In January 2018, Scottish Re Group (SRUS) 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 oversight procedures of Scottish Re (U.S.), Inc. (SRUS), with whom the Company is a counterparty for some of its reinsurance activities. SRUS was ordered into receivership for the purposes of rehabilitation on March 6, 2019. The IID suspended the certificate of authority for SRUS on May 16, 2019. The IID has continued to allow reinsurance credit for contracts in force as of May 16, 2019. At December 31, 2019, the Company’s reserves ceded to Scottish Re Group were $102,181. The receiver currently has committed to the court it will provide a rehabilitation plan or a recommendation to move to liquidation in 2020.

73

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 $1,044 which has been included in the Statements 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 Statements 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 Statements of Operations. In addition, as a result of this transaction, amounts previously deferred to surplus under SSAP No. 61R, 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.

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 BOLI/COLI business 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,

74

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 $606,042 which has been included in the Statements 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 $927,014 which has been included in the Statements 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 Statements 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 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 Statements of Operations. The Company subsequently entered into an agreement with SCOR Global Life Americas to assume business related to this recapture.

75

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 Statements 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.

76

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

9. Income Taxes

The net deferred income tax asset at December 31, 2019 and 2018 and the change from the prior year are comprised of the following components:

	December 31, 2019
	Ordinary		Capital			Total
Gross Deferred Tax Assets	$	1,422,652	$	101,290		$	1,523,942
Statutory Valuation Allowance Adjustment		13,747		—			13,747
Adjusted Gross Deferred Tax Assets		1,408,905		101,290			1,510,195
Deferred Tax Assets Nonadmitted		—		—			—
Subtotal (Net Deferred Tax Assets)		1,408,905		101,290			1,510,195
Deferred Tax Liabilities		843,226		191,611			1,034,837
Net Admitted Deferred Tax Assets	$	565,679	$	(90,321	)	$	475,358

	December 31, 2018
	Ordinary		Capital			Total
Gross Deferred Tax Assets	$	1,618,151	$	132,884		$	1,751,035
Statutory Valuation Allowance Adjustment		—		—			—
Adjusted Gross Deferred Tax Assets		1,618,151		132,884			1,751,035
Deferred Tax Assets Nonadmitted		96,652		—			96,652
Subtotal (Net Deferred Tax Assets)		1,521,499		132,884			1,654,383
Deferred Tax Liabilities		816,662		210,082			1,026,744
Net Admitted Deferred Tax Assets	$	704,837	$	(77,198	)	$	627,639

	Change
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	(195,499	)	$	(31,594	)	$	(227,093	)
Statutory Valuation Allowance Adjustment		13,747			—			13,747
Adjusted Gross Deferred Tax Assets		(209,246	)		(31,594	)		(240,840	)
Deferred Tax Assets Nonadmitted		(96,652	)		—			(96,652	)
Subtotal (Net Deferred Tax Assets)		(112,594	)		(31,594	)		(144,188	)
Deferred Tax Liabilities		26,564			(18,471	)		8,093
Net Admitted Deferred Tax Assets	$	(139,158	)	$	(13,123	)	$	(152,281	)

77

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The main components of deferred income tax amounts are as follows:

	Year Ended December 31
	2019		2018		Change
Deferred Tax Assets:
Ordinary
Policyholder reserves	$	486,010	$	601,605	$	(115,595	)
Investments		328,516		295,047		33,469
Deferred acquisition costs		255,732		225,485		30,247
Policyholder dividends accrual		1,914		1,232		682
Fixed assets		4,933		17,844		(12,911	)
Compensation and benefits accrual		19,346		21,148		(1,802	)
Receivables—nonadmitted		11,594		13,038		(1,444	)
Tax credit carry-forward		259,638		349,547		(89,909	)
Other (including items <5% of total ordinary tax assets)		54,969		93,205		(38,236	)
Subtotal		1,422,652		1,618,151		(195,499	)
Statutory valuation allowance adjustment		13,747		—		13,747
Nonadmitted		—		96,652		(96,652	)
Admitted ordinary deferred tax assets		1,408,905		1,521,499		(112,594	)
Capital:
Investments		101,290		132,884		(31,594	)
Subtotal		101,290		132,884		(31,594	)
Statutory valuation allowance adjustment		—		—		—
Nonadmitted		—		—		—
Admitted capital deferred tax assets		101,290		132,884		(31,594	)
Admitted deferred tax assets	$	1,510,195	$	1,654,383	$	(144,188	)

	Year Ended December 31
	2019		2018		Change
Deferred Tax Liabilities:
Ordinary
Investments	$	657,801	$	602,167	$	55,634
Policyholder reserves		185,248		177,087		8,161
Other (including items <5% of total ordinary tax liabilities)		177		37,408		(37,231	)
Subtotal		843,226		816,662		26,564
Capital
Investments		191,611		210,082		(18,471	)
Subtotal		191,611		210,082		(18,471	)
Deferred tax liabilities		1,034,837		1,026,744		8,093
Net deferred tax assets/liabilities	$	475,358	$	627,639	$	(152,281	)

As a result of the 2017 Tax Cuts and Jobs Act (TCJA), the Company’s tax reserve deductible temporary difference increased by $49,757. This change results in an offsetting ($49,757) taxable temporary difference that will be amortized into taxable income evenly over the eight years subsequent to 2017. The remaining amortizable balance is included within the Policyholder Reserves line items above.

78

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

At December 31, 2019, the Company recorded a tax valuation allowance of $13,747 for deferred tax assets related to its foreign tax credit carryover. Due to the TCJA reduction in the U.S. Federal tax rate, Management no longer believes it is more likely than not that the Company will realize the benefit of its foreign tax credit carryover. The ultimate realization of this deferred tax asset depends on generation of sufficient future foreign source taxable income before the foreign tax credit carryover expires in 2027. Management considers the projected foreign source taxable income, credit expirations and tax planning strategies in making the assessment.

As discussed in Note 2, for the years ended December 31, 2019 and 2018 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, 2019
		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)		557,252		31,779		589,031
	1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		557,252		31,779		589,031
	2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		907,922
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		851,653		69,511		921,164
2(d)	Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	1,408,905	$	101,290	$	1,510,195

79

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

		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)		596,212		34,054		630,266
	1. Adjusted Gross Deferred Tax Assets     Expected to be Realized Following the     Balance Sheet Date		596,212		34,054		630,266
	2. Adjusted Gross Deferred Tax Assets     Allowed per Limitation Threshold		XXX		XXX		847,469
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		925,287		98,830		1,024,117
2(d)	Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	1,521,499	$	132,884	$	1,654,383

		Change
		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)		(38,960	)		(2,275	)		(41,235	)
	1. Adjusted Gross Deferred Tax Assets     Expected to be Realized Following the     Balance Sheet Date		(38,960	)		(2,275	)		(41,235	)
	2. Adjusted Gross Deferred Tax Assets     Allowed per Limitation Threshold		XXX			XXX			60,453
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		(73,634	)		(29,319	)		(102,953	)
2(d)	Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	(112,594	)	$	(31,594	)	$	(144,188	)

	December 31
	2019			2018			Change
Ratio Percentage Used To Determine Recovery Period and Threshold Limitation Amount		848	%		818	%		30	%
Amount of Adjusted Capital and Surplus Used To Determine Recovery Period and Threshold Limitation in 2(b)2 Above	$	6,052,812		$	5,649,795		$	403,017

80

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The impact of tax planning strategies at December 31, 2019 and 2018 was as follows:

	December 31, 2019
	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)		1	%		0	%		1	%

	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	%

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
	2019			2018			Change
Current Income Tax
Federal	$	(77,933	)	$	(63,062	)	$	(14,871	)
Foreign		—			—			—
Subtotal		(77,933	)		(63,062	)		(14,871	)
Federal income tax on net capital gains		43,047			(4,006	)		47,053
Federal and foreign income taxes incurred	$	(34,886	)	$	(67,068	)	$	32,182

	Year Ended December 31
	2018			2017			Change
Current Income Tax
Federal	$	(63,062	)	$	(1,035,137	)	$	972,075
Foreign		—			31			(31	)
Subtotal		(63,062	)		(1,035,106	)		972,044
Federal income tax on net capital gains		(4,006	)		197,937			(201,943	)
Federal and foreign income taxes incurred	$	(67,068	)	$	(837,169	)	$	770,101

81

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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
	2019			2018			2017
Current income taxes incurred	$	(34,886	)	$	(67,068	)	$	(837,169	)
Change in deferred income taxes (without tax on unrealized gains and losses)		164,812			(164,466	)		956,486
Total income tax reported	$	129,926		$	(231,534	)	$	119,317
Income before taxes	$	3,306,846		$	(1,613,658	)	$	1,674,439
		21.00	%		21.00	%		35.00	%
Expected income tax expense (benefit) at statutory rate	$	694,438		$	(338,868	)	$	586,054
Increase (decrease) in actual tax reported resulting from:
Pre-tax income of disregarded subsidiaries	$	22,600		$	13,405		$	343,013
Dividends received deduction		(58,418	)		(51,477	)		(233,578	)
Tax-exempt income		(9,681	)		(2,455	)		(3,063	)
Nondeductible expenses		5,058			5,176			64,514
Pre-tax items reported net of tax		(39,457	)		(9,892	)		(712,769	)
Tax credits		(29,037	)		(52,239	)		(54,076	)
Prior period tax return adjustment		10,746			10,586			(5,969	)
Change in statutory valuation allowance		13,747			(2,432	)		(11,576	)
Change in tax rates		—			—			18,760
Change in uncertain tax positions		(241	)		3,104			3,668
Deferred tax change on other items in surplus		(480,743	)		207,024			140,162
Other		914			(13,466	)		(15,823	)
Total income tax reported	$	129,926		$	(231,534	)	$	119,317

On December 22, 2017, the TCJA reduced the federal tax rate to 21%. As a result, the Company reduced its net deferred tax asset balance by $18,760, excluding $42,500 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.

The Company’s federal income tax return is consolidated with other included affiliated companies. Please see the listing of companies in 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

82

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 2019.

The amounts, origination dates and expiration dates of operating loss and tax credit carryforwards available for tax purposes:

Description	Amounts		Origination Dates		Expiration Dates
Foreign Tax Credit	$	13,747		12/31/2017		12/31/2027
Foreign Tax Credit Total	$	13,747
General Business Credit	$	29,094		12/31/2009		12/31/2029
General Business Credit		51,443		12/31/2010		12/31/2030
General Business Credit		46,730		12/31/2011		12/31/2031
General Business Credit		30,962		12/31/2012		12/31/2032
General Business Credit		24,765		12/31/2013		12/31/2033
General Business Credit		20,930		12/31/2014		12/31/2034
General Business Credit		18,131		12/31/2015		12/31/2035
General Business Credit		2,935		12/31/2016		12/31/2036
General Business Credit		5,189		12/31/2017		12/31/2037
General Business Credit		5,280		12/31/2018		12/31/2038
General Business Credit		10,431		12/31/2019		12/31/2039
General Business Credit Total	$	245,890

Gross AMT Credit Recognized as:

(1) Gross AMT credit recognized as:
a. Current year recoverable	$	14,515
b. Deferred tax asset (DTA)		—
(2) Beginning balance of AMT credit carryforward		14,515
(3) Amounts recovered		14,515
(4) Adjustments		—
(5) Ending balance of AMT credit carryforward (5=2-3-4)		—
(6) Reduction for sequestration		—
(7) Nonadmitted by reporting entity		—
(8) Reporting entity ending balance (8=5-6-7)	$	—

The Company elected to account for its alternative minimum tax credit carryforward as a deferred tax asset.

83

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The total amount of the unrecognized tax benefits that if recognized, would affect the effective income tax rate:

	Unrecognized Tax Benefits
Balance at January 1, 2018	$	15,486
Tax positions taken during prior period		3,105
Balance at December 31, 2018	$	18,591
Tax positions taken during prior period		(241	)
Balance at December 31, 2019	$	18,350

The Company classifies interest and penalties related to income taxes as income tax expense. The amount of interest and penalties accrued on the balance sheets as income taxes includes the following:

						Total payable
	Interest			Penalties		(receivable)
Balance at January 1, 2017	$	11,926		$	—	$	11,926
Interest expense (benefit)		(5,815	)		—		(5,815	)
Cash received (paid)		(9,212	)		—		(9,212	)
Balance at December 31, 2017	$	(3,101	)	$	—	$	(3,101	)
Interest expense (benefit)		2,727			—		2,727
Cash received (paid)		1,810			—		1,810
Balance at December 31, 2018	$	1,436		$	—	$	1,436
Interest expense (benefit)		5,709			—		5,709
Balance at December 31, 2019	$	7,145		$	—	$	7,145

The Company has no federal income tax returns currently under examination. The Internal Revenue Service completed its examination for years 2009 through 2013 resulting in tax return adjustments for which an appeals conference was requested. Federal income tax returns filed in 2014 through 2018 remain open, subject to potential future examination. 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, 2019 and 2018.

The Company has 42,500 Series A preferred shares authorized, 0 shares issued and outstanding. On December 26, 2006, the Company repurchased its Series A preferred shares for $58,000. The Company previously reported 42,500 shares of Series A preferred stock outstanding at $10 par, carried as treasury stock. It has been determined that these shares were cancelled by operation of law as they were not stipulated by the Board of Directors to be treasury shares at the time they were repurchased. The cancellation and removal of the preferred stock had no impact to Capital and Surplus of the Company. 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, 2019. 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.

84

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The Company is subject to limitations, imposed by the State of Iowa, on the payment of dividends to its stockholders. 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 2020, without the prior approval of insurance regulatory authorities, is $3,053,498.

On December 20, 2019, the Company paid extraordinary common stock dividends of $725,000 to its parent company.

On June 21, 2019, the Company paid an extraordinary dividend of $400,000 split between a return of capital of $250,000 to its parent company and paid off the remaining balance of a surplus note of $150,000 to Transamerica Corporation (TA Corp).

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 TA Corp.

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.

The Company provided cash returns of capital to its parent company in the amount of $558,740 on December 13, 2018.

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.

Prior to the merger, TALIC paid an ordinary dividend of $200,000 to its parent company, TA Corp, on April 20, 2018.

On December 31, 2019, the Company received ordinary common stock dividends of $100,000 from TLIC Oakbrook Reinsurance, Inc. (TORI).

On December 20, 2019, the Company received $99,982 from Transamerica Financial Life Insurance Company (TFLIC) as consideration for repurchase of 821 of the Company’s common stock shares in TFLIC at $125 par value. These shares were subsequently cancelled by operation of law.

On December 17, 2019, the Company received a $28,220 common stock dividend from Transamerica Life (Bermuda) Ltd. (TLB).

85

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

On June 21, 2019, the Company received an ordinary common stock dividend of $9,075 from its affiliate, TFLIC.

On March 29, 2019, the Company received ordinary common stock dividend of $60,000 from LIICA Re II, Inc.

The Company received ordinary common stock dividends from TFLIC in the amount of $12,105 on June 29, 2018. On December 13, 2018, the Company received preferred stock dividends of $430 from TFLIC.

On December 18, 2018, the Company received common stock dividends of $23,520 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 Stonebridge Reinsurance Company (SRC) prior to its merger with LIICA Re II, Inc.

On December 31, 2018, the Company made a non-cash capital contribution in the amount of $1,971 to REAP 3A.

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 various risk factors. At December 31, 2019, the Company meets the minimum RBC requirements.

The Company’s surplus notes are held by TA Corp. 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.

On June 21, 2019, the Company repaid in full its $150,000 surplus note with TA Corp. The Company received approval from the IID prior to its repayment of the surplus note as well as prior to making quarterly interest payments.

Additional information related to the outstanding surplus notes at December 31, 2019 and 2018 is as follows:

For Year Ending	Balance Outstanding		Interest Paid Current Year		Cumulative Interest Paid		Accrued Interest
2019	$	—	$	4,275	$	148,275	$	—
2018	$	150,000	$	9,000	$	144,000	$	2,250

86

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

11. Securities Lending

The Company participates in an agent-managed securities lending program in which the Company primarily loans out US Treasuries and other bonds. The Company receives collateral equal to 102% of the fair value of the loaned government or other 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, 2019 and 2018, respectively, securities with a fair value of $1,121,274 and $1,791,674 were on loan under securities lending agreements. At December 31, 2019 and 2018, 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 $1,246,827 and $1,835,122 at December 31, 2019 and 2018, respectively.

The contractual maturities of the securities lending collateral positions are as follows:

	Fair Value
	2019		2018
Open	$	1,246,827	$	1,842,557
Total		1,246,827		1,842,557
Securities received		—		—
Total collateral received	$	1,246,827	$	1,842,557

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.

87

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The maturity dates of the reinvested securities lending collateral are as follows:

	2019				2018
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Open	$	43,483	$	43,483	$	245,460	$	245,460
30 days or less		342,947		342,947		478,305		478,305
31 to 60 days		509,716		509,716		335,517		335,517
61 to 90 days		124,351		124,351		190,847		190,847
91 to 120 days		121,552		121,552		329,816		329,816
121 to 180 days		104,778		104,778		251,440		251,440
1 to 2 years		—		—		417		417
2 to 3 years		—		—		935		935
Greater than 3 years		—		—		2,385		2,385
Total		1,246,827		1,246,827		1,835,122		1,835,122
Securities received		—		—		—		—
Total collateral reinvested	$	1,246,827	$	1,246,827	$	1,835,122	$	1,835,122

Collateral for securities lending transactions that extend beyond one year from the report date is as follows:

Description of collateral	2019		2018
ABS Autos	$	—	$	1,352
ABS Credit Cards		—		2,385
Total collateral extending beyond one year of the reporting date	$	—	$	3,737

For securities lending, the Company’s source of cash used 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 $1,248,011 (fair value of $1,246,827) that are currently tradable securities that could be sold and used to pay for the $1,246,827 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 (IRC). 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 $11,926, $12,769 and $13,133 was allocated to the Company for the years ended December 31, 2019, 2018 and 2017 respectively.

88

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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.

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 IRC.

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 No. 102, Pensions. Pension expenses were $23,904, $23,481 and $30,676 for the years ended December 31, 2019, 2018 and 2017, 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 No. 92, Postretirement Benefits Other Than Pensions. The Company’s allocation of postretirement expenses was $5,037, $5,027 and $7,332 for the years ended December 31, 2019, 2018 and 2017, 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, 2019, 2018 and 2017 was insignificant.

89

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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, LLC whereby the advisor serves as the administrator and advisor for the Company’s mortgage loan operations. AEGON USA Investment Management, LLC acts as a discretionary investment manager under an Investment Management Agreement with the Company. The amount received by the Company as a result of being a party to these agreements was $920,368, $894,440 and $1,117,864 during 2019, 2018 and 2017, respectively. The amount paid as a result of being a party to these agreements was $559,946, $596,861 and $826,172 during 2019, 2018 and 2017, 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 Transamerica Series Trust. The Company received $130,182, $138,490 and $150,063 for these services during 2019, 2018 and 2017, respectively.

Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $50,537, $40,865 and $37,060 for the years ended December 31, 2019, 2018 and 2017, respectively.

Receivables from and payables to affiliates bear interest at the thirty-day commercial paper rate. During 2019, 2018 and 2017, the Company received (paid) net interest of ($1,760), ($476) and ($869) from (to) affiliates, respectively. At December 31, 2019 and 2018, respectively, the Company reported net payables from affiliates of $29,972 and $44,462. Terms of settlement require that these amounts are settled within 60 days.

At December 31, 2019, the Company had short-term intercompany notes receivable of $240,300 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	$	77,700		September 4, 2020		2.04	%
TA Corp		1,400		September 5, 2020		2.04	%
TA Corp		43,700		September 19, 2020		2.04	%
TA Corp		49,000		October 21, 2020		1.92	%
TA Corp		43,500		December 26, 2020		1.61	%
TA Corp		25,000		December 29, 2020		1.61	%

90

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

At December 31, 2018, the Company had short-term intercompany notes receivable of $261,000.

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	%

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, 2019 and 2018, the cash surrender value of these policies was $182,753 and $179,004, respectively, and is included in Other assets on the balance sheets. 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 $170,124 and $167,126 at December 31, 2019 and 2018, respectively, and is included in Aggregate reserves for policies and contracts on the Balance Sheets.

The Company utilizes the look-through approach in valuing its investment in the following entities.

Real Estate Alternatives Portfolio 2, LLC	$	22,345
Real Estate Alternatives Portfolio 3, LLC	$	18,419
Real Estate Alternatives Portfolio 4 HR, LLC	$	95,091
Real Estate Alternatives Portfolio 4 MR, LLC	$	6,085
Aegon Multi-Family Equity Fund, LLC	$	55,911
Aegon Workforce Housing Fund 2, L.P.	$	154,601
Aegon Workforce Housing Fund 3, L.P.	$	12,477
Natural Resources Alternatives Portfolio I, LLC	$	170,193
Natural Resources Alternatives Portfolio II, LLC	$	1
Natural Resources Alternatives Portfolio 3, LLC	$	125,161
Zero Beta Fund, LLC	$	257,897

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 Investors Warranty of America, LLC (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 Statements 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.

91

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The following tables shows the disclosures for all SCA investments, except 8bi entities, and balance sheet value (admitted and nonadmitted) as of December 31, 2019 and 2018:

December 31, 2019
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		54	%	$	12,963	$	12,963	$	—
GARNET ASSURANCE CORP		100			—		—		—
LIFE INVESTORS ALLIANCE LLC		100			—		—		—
ASIA INVESTMENT HOLDING LTD		100			—		—		—
AEGON FINANCIAL SERVICES GROUP		100			—		—		—
GARNET ASSURANCE CORP III		100			—		—		—
Total SSAP No. 97 8b(iii) Entities		XXX		$	12,963	$	12,963	$	—
SSAP No. 97 8b(iv) Entities
TRANSAMERICA LIFE (BERMUDA) LTD		94	%	$	1,261,461	$	1,261,461	$	—
Total SSAP No. 97 8b(iv) Entities		XXX		$	1,261,461	$	1,261,461	$	—
Total SSAP No. 97 8b Entities (except 8bi entities)		XXX		$	1,274,424	$	1,274,424	$	—
Aggregate Total		XXX		$	1,274,424	$	1,274,424	$	—

December 31, 2018
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		54	%	$	22,419	$	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	$	22,419	$	—
SSAP No. 97 8b(iv) Entities
TRANSAMERICA LIFE (BERMUDA) LTD		94	%	$	1,000,646	$	1,000,646	$	—
Total SSAP No. 97 8b(iv) Entities		XXX		$	1,000,646	$	1,000,646	$	—
Total SSAP No. 97 8b Entities (except 8bi entities)		XXX		$	1,023,065	$	1,023,065	$	—
Aggregate Total		XXX		$	1,023,065	$	1,023,065	$	—

92

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The following table shows the NAIC responses for the SCA filings (except 8bi entities):

December 31, 2019
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		S2		10/31/2019	$	20,940		Y		N		I
GARNET ASSURANCE CORP		NA		—		—		—		—		I
LIFE INVESTORS ALLIANCE LLC		NA		—		—		—		—		I
ASIA INVESTMENT HOLDING LTD		NA		—		—		—		—		I
AEGON FINANCIAL SERVICES GROUP		NA		—		—		—		—		I
GARNET ASSURANCE CORP III		NA		—		—		—		—		I
Total SSAP No. 97 8b(iii) Entities		—		—	$	20,940		—		—		—
SSAP No. 97 8b(iv) Entities
TRANSAMERICA LIFE (BERMUDA) LTD		S2		1/21/2020	$	608,633		Y		N		I
Total SSAP No. 97 8b(iv) Entities		—		—	$	608,633		—		—		—
Total SSAP No. 97 8b Entities (except 8bi entities)		—		—	$	629,573		—		—		—
Aggregate Total		—		—	$	629,573		—		—		—

* 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

93

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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		S2		12/21/2018	$	16,471		Y		N		I
GARNET ASSURANCE CORP		NA		—		—		Y		N		I
LIFE INVESTORS ALLIANCE LLC		NA		—		—		Y		N		I
AEGON FINANCIAL SERVICES GROUP		NA		—		—		Y		N		I
GARNET ASSURANCE CORP III		NA		—		—		N		N		I
Total SSAP No. 97 8b(iii) Entities		—		—	$	16,471		—		—		—
SSAP No. 97 8b(iv) Entities
TRANSAMERICA LIFE (BERMUDA) LTD		S2		10/8/2018	$	815,587		N		N		I
Total SSAP No. 97 8b(iv) Entities		—		—	$	815,587		—		—		—
Total SSAP No. 97 8b Entities (except 8bi entities)		—		—	$	832,058		—		—		—
Aggregate Total		—		—	$	832,058		—		—		—

* 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.	Excess of loss reinsurance asset
Pine Falls Re (PFRe)	Letter of credit
MLIC Re I, Inc. (MLIC Re)	Letter of credit

94

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The Company has two Limited Purpose Subsidiaries (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 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**	$	—	$	(2,298,765	)	$	—	$	—
Pine Falls Re**		—		(1,100,000	)		—		—
MLIC Re**		—		(770,000	)		—		—
TLIC Oakbrook Reinsurance, Inc.		—		(3,383,614	)		1,238,107		—
TLIC Watertree Reinsurance, Inc.		—		(858,258	)		544,597		—

* Per AP&P Manual (without permitted or prescribed practices)

** The SCA is valued at zero in the Company’s financial statements

Had the above SCA entities not been permitted to recognize the letters of credit, excess of loss reinsurance assets, or the credit linked note as admitted assets in the financial statements, the risk-based capital would have been below the mandatory control level which would have triggered a regulatory event.

Information regarding the Company’s affiliated reinsurance transactions is available in Note 8. Reinsurance.

Information regarding the Company’s affiliated guarantees is available in Note 14. Commitments and Contingencies.

14. Commitments and Contingencies

At December 31, 2019 and 2018, the Company has mortgage loan commitments of $177,098 and $238,370, respectively.

The Company has contingent commitments of $732,478 and $718,870 as of December 31, 2019 and 2018, respectively, to provide additional funding for various joint ventures, partnerships, and limited liability companies, which includes LIHTC commitments of $26,728 and $55,107, respectively.

95

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The Company leases office buildings and equipment under various non-cancelable operating lease agreements. Rental expense for the years 2019 and 2018 was $12,478 and $11,086, respectively.

Private placement commitments outstanding as of December 31, 2019 and 2018 were $81,493 and $78,516, respectively.

The Company sold $101,473 and $1,658 of “to-be-announced” (TBA) securities as of December 31, 2019 and 2018, 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. The amount of cash collateral pledged by the Company as of December 31, 2019 and 2018, respectively, was $80,993 and $6,782.

At December 31, 2019 and 2018, securities in the amount of $46,975 and $254,930, respectively, were posted to the Company as collateral from derivative counterparties. The securities were not included on the Company’s balance sheets 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, 2019. 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, 2019, there is no payment or performance risk because TLB has adequate liquidity as of this date.

The Company has guaranteed to the Hong Kong Insurance Authority that it will provide the financial support to TLB for maintaining TLB’s solvency at all times so as to enable TLB to promptly meet its obligations and liabilities. If at any time the value of TLB’s assets do not exceed its liabilities by the prevailing acceptable level of solvency, the Company will increase the

96

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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, 2019, 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, 2019, 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, 2019 and 2018, TLB holds related statutory-basis policy and claim reserves of $2,334,649 and $2,212,527, 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, 2019, 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, 2019 and 2018, TLB policies covered by this guarantee would have resulted in US statutory policy and claim reserves of $3,585,273 and $3,458,012, 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, 2019, there is no payment or performance risk because TLB is not insolvent as of this date.

97

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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 $577 and $587 under this agreement in 2019 and 2018, 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, 2019 and 2018 for the total payout block is $3,154,349 and $3,235,571, respectively. As this reserve is already recorded on the balance sheets of the Company, there was no additional liability recorded due to the adoption of SSAP No. 5R.

During 2019, the Company entered into an agreement with Aegon USA Realty Advisors, LLC to commit to purchase certain tax credit investments up to a maximum of $100,000. Under the terms of the agreement, the Company provides certain commitments to purchase tax credit investments that are part of tax credit funds in the event certain conditions are met. The Company did not acquire any tax credit investments during 2019 under this agreement. As of December 31, 2019, the commit to purchase amount is $47,890.

The following table provides an aggregate compilation of guarantee obligations as of December 31, 2019 and 2018:

	December 31
	2019		2018
Aggregate maximum potential of future payments of all guarantees (undiscounted)	$	5,919,933	$	5,670,570
Current liability recognized in financial statements:
Noncontingent liabilities		—		—
Contingent liabilities		—		—
Ultimate financial statement impact if action required:
Incurred claims		5,919,922		5,670,539
Other		11		31
Total impact if action required	$	5,919,933	$	5,670,570

98

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 $3,472,120. The Company calculated this amount in accordance with the terms and conditions of agreement with FHLB of Des Moines.

At December 31, 2019 and 2018, the Company purchased/owned the following FHLB stock as part of the agreement:

	Year Ended December 31
	2019		2018
Membership Stock:
Class A	$	—	$	—
Class B		10,000		10,000
Activity Stock		32,800		123,400
Excess Stock		—		—
Total	$	42,800	$	133,400

At December 31, 2019 and 2018, 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, 2019
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
December 31, 2018
Membership Stock
Class A	$	—	$	—	$	—	$	—
Class B		—		—		—		10,000
Total	$	—	$	—	$	—	$	10,000

99

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

At December 31, 2019 and 2018, the amount of collateral pledged and the maximum amount pledged to the FHLB was as follows:

	Fair Value		Carry Value
December 31, 2019
Total Collateral Pledged	$	1,334,507	$	1,259,059
Maximum Collateral Pledged		4,031,902		4,029,873

	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

At December 31, 2019 and 2018, the borrowings from the FHLB were as follows:

	December 31, 2019				December 31, 2018
	General Account		Funding Agreements Reserves Established		General Account		Funding Agreements Reserves Established
Debt1	$	820,000	$	—	$	2,820,000	$	—
Funding agreements2		—		—		265,000		266,742
Total	$	820,000	$	—	$	3,085,000	$	266,742

¹ The maximum amount of borrowing during 2019 was $2,695,000

² The maximum amount of borrowing during 2019 was $0

As of December 31, 2019, the weighted average interest rate on FHLB advances was 2.183% with a weighted average term of 2.3 years. 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.

At December 31, 2019, the borrowings from the FHLB were not subject to prepayment penalties.

The Company has issued synthetic GIC contracts to benefit plan sponsors totaling $1,953,828 and $1,905,244 as of December 31, 2019 and 2018, respectively. A synthetic GIC is an off-balance sheet fee-based product sold primarily to tax qualified plans, where the plan sponsor retains ownership and control of the related plan assets and the Company provides book value benefit responsiveness to qualified participant withdrawals, in the event withdrawals requested exceeds plan cash flows. In certain contracts, the Company agrees to make advances to meet benefit withdrawal needs and earns a market interest rate on these advances. A periodically adjusted contract-crediting rate is a means by which investment and benefit responsiveness experience is passed through to participants. In return for the book value benefit responsiveness guarantee, the Company receives a premium that varies based on such elements as benefit responsiveness 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 ensuring the appropriate credit quality and cash flow. Funding requirements to date have been minimal and management does not anticipate any future material funding requirements to have a material impact on the reported financial results. In compliance with statutory guidelines, no reserves were recorded at December 31, 2019.

100

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(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 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 their complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes includes substantial demands for compensatory and punitive damages, and injunctive relief, damages arising from such demands are typically not to be material to the Company’s financial position.

The Company has been named in class actions and individual lawsuits relating to increases in monthly deduction rates (MDR) on universal life products. The Company continues to defend against various lawsuits initiated by opt outs of one federal class action filed in the Central District of California that was settled in 2018 and approved in 2019. While the settlement has been administered for participating class members, the Company continues to hold a provision for opt out policyholder litigation. The Company also continues to defend other class actions and individual actions relating to MDR increases on different blocks of universal life insurance policies.

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 sheets. 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 $7,066 and $7,893 and an offsetting premium tax benefit $5,402 and $6,198 at December 31, 2019 and 2018, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund (benefit) expense was $2,296, $400 and $216, for the years ended December 31, 2019, 2018 and 2017, respectively.

15. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities

The Company is party to municipal repurchase agreements which were established via bilateral trades and accounted for as secured borrowings. For municipal repurchase agreements, the Company rigorously manages asset/liability risks via an integrated risk management framework. The Company’s liquidity position is monitored constantly, and factors heavily in the management of the asset portfolio. Projections comparing liquidity needs to available resources in both adverse and routine scenarios are refreshed monthly. The results of these projections on time horizons ranging from 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.

101

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The following tables provide information on the securities sold under the municipal repurchase agreements for four quarters of 2019 and 2018:

December 31, 2019
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Maximum Amount
BACV		XXX		XXX		XXX	$	113,025
Fair Value	$	218,538	$	207,007	$	231,989	$	125,603
Ending Balance
BACV		XXX		XXX		XXX	$	113,025
Fair Value	$	170,891	$	207,007	$	231,989	$	125,603

December 31, 2018
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Maximum Amount
BACV		XXX		XXX		XXX	$	215,269
Fair Value	$	171,138	$	190,768	$	225,811	$	225,409
Ending Balance
BACV		XXX		XXX		XXX	$	205,405
Fair Value	$	171,138	$	188,120	$	225,811	$	217,575

	2019						2018
	NAIC 1		NAIC 2		Total		NAIC 1		NAIC 2		Total
Bonds—BACV	$	111,825	$	1,200	$	113,025	$	193,398	$	12,007	$	205,405
Bonds—FV		124,403		1,200		125,603		205,526		12,049		217,575

These securities have maturity dates that range from 2020 to 2097.

102

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

The following table provides information on the cash collateral received and liability to return collateral under the municipal repurchase agreements for four quarters of 2019 and 2018:

December 31, 2019
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Maximum Amount
Cash	$	125,952	$	157,496	$	174,120	$	99,794
Ending Balance (1)
Cash	$	125,952	$	154,345	$	78,286	$	97,858

⁽¹⁾ The remaining collateral held was greater than 90 days from contractual maturity.

December 31, 2018
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Maximum Amount
Cash	$	122,018	$	152,634	$	167,228	$	98,835
Ending Balance
Cash	$	121,892	$	148,082	$	78,013	$	95,515

The Company enters into dollar repurchase agreements in which securities are delivered to the counterparty once adequate collateral has been received. At December 31, 2019 and 2018, the Company had dollar repurchase agreements outstanding in the amount of $450,208 and $215,483, respectively, which is included in borrowed money on the balance sheets. Those amounts include accrued interest of $1,379 and $1,125, at December 31, 2019 and 2018, respectively. At December 31, 2019, securities with a book value of $550,333 and a fair value of $551,504 were subject to dollar repurchase agreements. These securities have maturity dates that range from October 1, 2034 to October 1, 2049. At December 31, 2018, securities with a book value of $371,260 and a fair value of $368,256 were subject to dollar repurchase agreements. The Company does not have the legal right to recall or substitute the underlying assets prior to the transaction’s scheduled termination. Upon scheduled termination, the counterparty is obligated to return substantially similar assets.

The contractual maturities of the dollar repurchase agreement positions are as follows:

	Fair Value
	2019		2018
Open	$	448,829	$	214,357
Total		448,829		214,357
Securities received		—		—
Total collateral received	$	448,829	$	214,357

103

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

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 2019 and reacquired within 30 days of the sale date are:

	Number of Transactions		Book Value of Securities Sold		Cost of Securities Repurchased		Gains (Losses)
Common stocks		6	$	26	$	12	$	17

16. Reconciliation to Statutory Statement

The following is a reconciliation of amounts previously reported to the Iowa Department of Financial Regulation in the 2019 Annual Statement, to those reported in the accompanying statutory-basis financial statements:

	December 31
	2019			2018
Balance Sheets
Total assets as reported in the Company’s Annual Statement	$	130,191,350		$	124,175,952
Increase in other assets		23,416			—
Increase in net deferred income tax asset		8,660			—
Total assets as reported in the accompanying audited statutory basis balance sheet	$	130,223,426		$	124,175,952
Total liabilities as reported in the Company’s Annual Statement	$	123,630,600		$	117,898,517
Increase in other liabilities		23,416			—
Increase in aggregate reserves for policies and contracts		41,240			—
Total liabilities as reported in the accompanying audited statutory basis balance sheet	$	123,695,256		$	117,898,517
Total capital and surplus as reported in the Company’s Annual Statement	$	6,560,750		$	6,277,435
Decrease in premiums		—			(14,950	)
Increase in change in aggregate reserves		(41,240	)		—
Increase in change in net deferred income tax asset		8,660			—
Increase in other changes—net		—			14,950
Total capital and surplus as reported in the accompanying audited statutory basis balance sheet	$	6,528,170		$	6,277,435
Statements of Operations
Statutory net income as reported in the Company’s Annual Statement	$	3,335,262		$	(1,408,868	)
Decrease in premiums and other considerations		(653,203	)		(635,470	)
Decrease in fee revenue and other income		—			(5,700	)
Decrease in surrender benefits		653,203			618,170
Increase in change in aggregate reserves		(41,240	)		—
Increase in federal income tax (benefit) expense		—			(8,050	)
Total net income as reported in the accompanying audited statutory basis statement of operations	$	3,294,022		$	(1,423,818	)

The reconciling differences to the Annual Statement is driven by Management’s decision to revise prior year amounts. Please refer to Revision to Prior Years in Note 3 for further details.

104

Transamerica Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share amounts)

Other adjustments relate to actuarial modeling errors and reclassification errors. The Company considered the impacts of each of these errors to be not material both individually and in the aggregate and concluded that none were significant for individual categorization herein.

17. Subsequent Events

The financial statements are adjusted to reflect events that occurred between the balance sheets date and the date when the financial statements are available to be issued, provided they give evidence of conditions that existed at the balance sheets date (Type I). The Company has not identified any Type I subsequent events for the year ended December 31, 2019 through April 27, 2020.

Events that are indicative of conditions that arose after the balance sheets date are disclosed, but do not result in an adjustment of the financial statements themselves (Type II). The Company has identified Type II subsequent events for the year ended December 31, 2019.

Since January 2020, the Coronavirus disease (COVID-19) outbreak is causing disruption to business, markets, and industry. The Company is continuously monitoring the market, and the economic factors that impact the Company, to proactively manage the associated risks. At this point, management believes that the most significant risks the Company faces are related to financial markets (particularly credit, equity, and interest rates risks), and underwriting risks (particularly related to mortality, morbidity and policyholder behavior). As of the audit report release date, the Company continues to monitor and evaluate the impacts of the COVID-19 crisis on the Company’s 2020 results through the use of sensitivities and stress testing. While it is too early to provide long-term impacts, if any, management has determined the Company remains strongly capitalized with RBC remaining within target limits set by the capital management policy.

The Company is defending a class action lawsuit and individual lawsuits relating to increases in MDR on universal life products. A settlement announced in the class action lawsuit in early April 2020 will result in the establishment of an estimated $94,000 reserve, which will be reflected in the Company’s first quarter of 2020 results. If the settlement is ultimately approved by the court, the Company expects to fund the settlement in third or fourth quarter of 2020.

105

Transamerica Life Insurance Company

Appendix A – Listing of Affiliated Companies

Transamerica Corporation

EIN: 42-1484983

AFFILIATIONS SCHEDULE

YEAR ENDED DECEMBER 31, 2019

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		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
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
Stonebridge Benefit Services Inc		75-2548428
Stonebridge Reinsurance Company		61-1497252
TCF Asset Management Corp		84-0642550

106

Transamerica Life Insurance Company

Appendix A – Listing of Affiliated Companies (continued)

Transamerica Corporation

EIN: 42-1484983

AFFILIATIONS SCHEDULE

YEAR ENDED DECEMBER 31, 2019

Attachment to Note 9

Entity Name	FEIN
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
Tranasmerica Advisors Life Insurance Company		91-1325756
Transamerica Accounts Holding Corp		36-4162154
Transamerica Affinity Services Inc		42-1523438
Transamerica Affordable Housing Inc		94-3252196
Transamerica Agency Network Inc		61-1513662
Transamerica Asset Management		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		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		52-1525601
Transamerica Small Business Capital Inc		36-4251204
Transamerica Stable Value Solutions Inc		27-0648897
Transamerica Vendor Financial Services Corporation		36-4134790

107

Transamerica Life Insurance Company

Appendix A – Listing of Affiliated Companies (continued)

Transamerica Corporation

EIN: 42-1484983

AFFILIATIONS SCHEDULE

YEAR ENDED DECEMBER 31, 2019

Attachment to Note 9

Entity Name	FEIN
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

108

Statutory-Basis Financial

Statement Schedules

109

Transamerica Life Insurance Company

Summary of Investments – Other Than

Investments in Related Parties

(Dollars in Thousands)

December 31, 2019

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	$	4,124,054	$	5,081,559	$	4,306,199
States, municipalities and political subdivisions		1,315,704		1,407,331		1,315,705
Foreign governments		349,796		369,821		349,796
Hybrid securities		396,942		440,640		396,942
All other corporate bonds		19,066,967		21,344,844		19,043,825
Preferred stocks		115,659		109,845		111,630
Total fixed maturities		25,369,122		28,754,040		25,524,097
Equity securities
Common stocks:
Industrial, miscellaneous and all other		58,311		80,789		80,789
Total equity securities		58,311		80,789		80,789
Mortgage loans on real estate		5,096,613				5,096,613
Real estate		51,546				51,546
Policy loans		1,099,596				1,099,596
Other long-term investments		1,072,720				1,072,720
Receivable for securities		18,535				18,535
Securities lending		1,246,827				1,246,827
Cash, cash equivalents and short-term investments		1,453,503				1,453,503
Total investments	$	35,466,773			$	35,644,226

(1) Equity securities are reported at original cost. Fixed maturities are reported at original cost reduced by repayments and adjusted for amortization of premiums and accrual of discounts.

(2) United States government and corporate bonds of $19,690 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 $1,037 due to having an NAIC 4 and 5 ratings.

110

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, 2019
Individual life	$	10,421,944	$	—	$	341,604	$	1,006,977		$	642,673		$	1,171,877		$	422,774
Individual health		80,537		92,813		27,401		100,145			10,837			55,956			229,548
Group life and health		1,527,571		20,356		76,891		595,324			94,785			202,901			212,660
Annuity		14,094,715		—		33,330		10,443,660			896,030			13,853,202			(2,991,668	)
	$	26,124,767	$	113,169	$	479,226	$	12,146,106		$	1,644,325		$	15,283,936		$	(2,126,686	)
Year ended December 31, 2018
Individual life	$	11,337,912	$	—	$	378,855	$	87,370		$	746,129		$	1,605,665		$	803,671
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		638,938			95,911			306,199			276,705
Annuity		14,244,431		—		37,065		9,980,980			658,084			16,182,017			(3,230,310	)
Other		—		—		—		—			141,678			—			—
	$	27,181,510	$	113,439	$	527,901	$	10,813,518		$	1,667,172		$	18,159,694		$	(1,956,254	)
Year ended December 31, 2017
Individual life	$	10,967,747	$	—	$	279,234	$	(7,804,573	)	$	(1,001,846	)	$	(1,700,459	)	$	519,906
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		14,355,269		—		27,887		5,271,506			1,497,683			9,199,357			(2,544,778	)
Other		—		—		—		—			437,448			—			—
	$	26,951,881	$	115,013	$	434,807	$	(3,514,168	)	$	2,516,282		$	3,377,666		$	(2,724,365	)

* 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.

111

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, 2019
Life insurance in force	$	503,852,244	$	774,726,771	$	421,298,647	$	150,424,120			280	%
Premiums:
Individual life	$	2,582,854	$	2,821,951	$	1,246,074	$	1,006,977			124	%
Individual health		529,850		432,873		3,168		100,145			3	%
Group life and health		704,156		109,598		766		595,324			0	%
Annuity		10,756,542		394,566		81,684		10,443,660			1	%
	$	14,573,402	$	3,758,988	$	1,331,692	$	12,146,106			11	%
Year ended December 31, 2018
Life insurance in force	$	976,929,481	$	831,268,672	$	1,204	$	145,662,013			0	%
Premiums:
Individual life	$	2,460,547	$	3,668,683	$	1,295,506	$	87,370			1483	%
Individual health		532,131		429,165		3,264		106,230			3	%
Group life and health		753,426		131,816		17,328		638,938			3	%
Annuity		10,102,616		199,520		77,884		9,980,980			1	%
	$	13,848,720	$	4,429,184	$	1,393,982	$	10,813,518			13	%
Year ended December 31, 2017
Life insurance in force	$	537,551,597	$	887,853,357	$	484,570,357	$	134,268,597			361	%
Premiums:
Individual life	$	2,452,523	$	11,837,526	$	1,580,429	$	(7,804,574	)		-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		9,424,428		4,218,194		65,273		5,271,507			1	%
	$	13,209,093	$	18,400,221	$	1,676,960	$	(3,514,168	)		-48	%

112

FINANCIAL STATEMENTS

Transamerica Life Insurance Company

Separate Account VA B

Years Ended December 31, 2019 and 2018

Transamerica Life Insurance Company

Separate Account VA B

Financial Statements

Years Ended December 31, 2019 and 2018

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	37

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, 2019, 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 of Separate Account VA B as of December 31, 2019, 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 JPMorgan Asset Allocation - Conservative Initial Class (1)
AB Growth and Income Class B Shares (1)	TA JPMorgan Asset Allocation - Conservative Service Class (1)
AB Large Cap Growth Class B Shares (1)	TA JPMorgan Asset Allocation - Growth Initial Class (1)
American Funds - Asset Allocation Class 2 Shares (1)	TA JPMorgan Asset Allocation - Growth Service Class (1)
American Funds - Bond Class 2 Shares (1)	TA JPMorgan Asset Allocation - Moderate Initial Class (1)
American Funds - Growth Class 2 Shares (1)	TA JPMorgan Asset Allocation - Moderate Service Class (1)
American Funds - Growth-Income Class 2 Shares (1)	TA JPMorgan Asset Allocation - Moderate Growth Initial Class (1)
American Funds - International Class 2 Shares (1)	TA JPMorgan Asset Allocation - Moderate Growth Service Class (1)
BlackRock Basic Value V.I. Class I Shares (1)	TA JPMorgan Core Bond Service Class (1)
BlackRock Global Allocation V.I. Class I Shares (1)	TA JPMorgan Enhanced Index Initial Class (1)
BlackRock High Yield V.I. Class I Shares (1)	TA JPMorgan Enhanced Index Service Class (1)
DFA VA Equity Allocation (3)	TA JPMorgan International Moderate Growth Initial Class (1)
DFA VA Global Bond (3)	TA JPMorgan International Moderate Growth Service Class (1)
DFA VA Global Moderate Allocation (3)	TA JPMorgan Mid Cap Value Service Class (1)
DFA VA International Small (3)	TA JPMorgan Tactical Allocation Service Class (1)
DFA VA International Value (3)	TA Legg Mason Dynamic Allocation - Balanced Service Class (1)
DFA VA Short-Term Fixed (3)	TA Legg Mason Dynamic Allocation - Growth Service Class (1)
DFA VA U.S. Large Value (3)	TA Levin Large Cap Value Service Class (2)
DFA VA U.S. Targeted Value (3)	TA Madison Diversified Income Service Class (1)
Fidelity® VIP Balanced Service Class 2 (1)	TA Managed Risk - Balanced ETF Service Class (1)
Fidelity® VIP Contrafund® Initial Class (1)	TA Managed Risk - Conservative ETF Service Class (1)
Fidelity® VIP Contrafund® Service Class 2 (1)	TA Managed Risk - Growth ETF Service Class (1)
Fidelity® VIP Equity-Income Initial Class (1)	TA Market Participation Strategy Service Class (1)
Fidelity® VIP Equity-Income Service Class 2 (1)	TA Morgan Stanley Capital Growth Initial Class (1)
Fidelity® VIP Growth Initial Class (1)	TA Morgan Stanley Capital Growth Service Class (1)
Fidelity® VIP Growth Service Class 2 (1)	TA Multi-Managed Balanced Initial Class (1)
Fidelity® VIP Growth Opportunities Service Class 2 (1)	TA Multi-Managed Balanced Service Class (1)
Fidelity® VIP Mid Cap Initial Class (1)	TA Multi-Manager Alternative Strategies Service Class (1)
Fidelity® VIP Mid Cap Service Class 2 (1)	TA PIMCO Tactical - Balanced Service Class (1)
Fidelity® VIP Value Strategies Initial Class (1)	TA PIMCO Tactical - Conservative Service Class (1)
Fidelity® VIP Value Strategies Service Class 2 (1)	TA PIMCO Tactical - Growth Service Class (1)
Franklin Allocation Class 4 Shares (1)	TA PIMCO Total Return Initial Class (1)
Franklin Income Class 2 Shares (1)	TA PIMCO Total Return Service Class (1)
Franklin Mutual Shares Class 2 Shares (1)	TA PineBridge Inflation Opportunities Service Class (1)
Franklin Templeton Foreign Class 2 Shares (1)	TA ProFunds UltraBear Service Class (OAM) (1)
Invesco V.I. American Franchise Series II Shares (1)	TA QS Investors Active Asset Allocation - Conservative Service Class (1)
Janus Henderson - Enterprise Service Shares (1)	TA QS Investors Active Asset Allocation - Moderate Service Class (1)
Janus Henderson - Global Research Service Shares (1)	TA QS Investors Active Asset Allocation - Moderate Growth Service Class (1)
Janus Henderson - Mid Cap Value Service Shares (1)	TA Small/Mid Cap Value Initial Class (1)
MFS® New Discovery Service Class (1)	TA Small/Mid Cap Value Service Class (1)
MFS® Total Return Service Class (1)	TA T. Rowe Price Small Cap Initial Class (1)
NVIT Emerging Markets Class D Shares (1)	TA T. Rowe Price Small Cap Service Class (1)
Rational Insider Buying VA (1)	TA TS&W International Equity Initial Class (1)
Rational Trend Aggregation VA (1)	TA TS&W International Equity Service Class (1)
State Street Total Return V.I.S. Class 3 Shares (1)	TA U.S. Equity Index Service Class (1)
TA 60/40 Allocation Service Class (2)	TA WMC US Growth Initial Class (1)
TA Aegon High Yield Bond Initial Class (1)	TA WMC US Growth Service Class (1)
TA Aegon High Yield Bond Service Class (1)	Vanguard® - Capital Growth (3)
TA Aegon U.S. Government Securities Initial Class (1)	Vanguard® - Conservative Allocation (3)
TA Aegon U.S. Government Securities Service Class (1)	Vanguard® - Diversified Value (3)
TA American Funds Managed Risk - Balanced Service Class (1)	Vanguard® Balanced (3)
TA Barrow Hanley Dividend Focused Initial Class (1)	Vanguard® Equity Income (3)
TA Barrow Hanley Dividend Focused Service Class (1)	Vanguard® Equity Index (1)
TA BlackRock Global Allocation Service Class (1)	Vanguard® Global Bond Index (3)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class (1)	Vanguard® Growth (3)
TA BlackRock Global Allocation Managed Risk - Growth Service Class (1)	Vanguard® High Yield Bond (3)
TA BlackRock Global Real Estate Securities Initial Class (1)	Vanguard® International (1)
TA BlackRock Global Real Estate Securities Service Class (1)	Vanguard® Mid-Cap Index (1)
TA BlackRock Government Money Market Initial Class (1)	Vanguard® Moderate Allocation (3)
TA BlackRock Government Money Market Service Class (1)	Vanguard® Money Market (3)
TA BlackRock iShares Edge 100 Service Class (1)	Vanguard® Real Estate Index (1)
TA BlackRock iShares Edge 40 Initial Class (1)	Vanguard® Short-Term Investment Grade (1)
TA BlackRock iShares Edge 40 Service Class (1)	Vanguard® Total Bond Market Index (1)
TA BlackRock iShares Edge 50 Service Class (1)	Vanguard® Total International Stock Market Index (3)
TA BlackRock iShares Edge 75 Service Class (1)	Vanguard® Total Stock Market Index (3)
TA BlackRock Tactical Allocation Service Class (1)	Voya Global Perspectives Class S Shares (1)
TA Greystone International Growth Initial Class (1)	Voya Large Cap Value Class S Shares (1)
TA Greystone International Growth Service Class (1)	Voya Strategic Allocation Conservative Class S Shares (1)
TA International Equity Index Service Class (1)	Voya Strategic Allocation Moderate Class S Shares (1)
TA Janus Balanced Service Class (1)	Wanger International (1)
TA Janus Mid-Cap Growth Initial Class (1)	Wanger USA (1)
TA Janus Mid-Cap Growth Service Class (1)

(1) Statements of operations and changes in net assets for the years ended December 31, 2019 and 2018

(2) Statements of operations and changes in net assets for the year ended December 31, 2019 and the period May 1, 2018 (commencement of operations) through December 31, 2018

(3) Statements of operations and changes in net assets for the period December 23, 2019 (commencement of operations) through December 31, 2019

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 of 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 of 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, 2019 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 17, 2020

We have served as the auditor of one or more of the subaccounts of Separate Account VA B since 2014.

1

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2019

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		9,638,959.446	$	104,466,016	$	97,353,490	$	89		$	97,353,579		30,129,720	$	1.538800	$	15.183174
AB Growth and Income Class B Shares		8,399,792.657		248,635,654		249,977,829		(221	)		249,977,608		66,912,738		1.645103		19.679929
AB Large Cap Growth Class B Shares		545,226.496		22,787,754		31,230,574		(184	)		31,230,390		11,372,716		2.439752		17.177241
American Funds - Asset Allocation Class 2 Shares		34,429,316.062		759,903,722		819,073,429		(13	)		819,073,416		194,454,343		1.857285		16.996598
American Funds - Bond Class 2 Shares		20,879,270.187		224,936,278		230,089,557		(174	)		230,089,383		64,327,748		1.077985		11.323489
American Funds - Growth Class 2 Shares		8,435,191.738		614,574,894		679,623,398		231			679,623,629		60,243,138		2.493490		24.274122
American Funds - Growth-Income Class 2 Shares		11,547,324.381		539,908,587		578,290,005		(60	)		578,289,945		55,567,642		2.373180		21.868044
American Funds - International Class 2 Shares		11,960,148.181		233,144,098		248,531,879		7			248,531,886		46,533,316		1.332038		14.760493
BlackRock Basic Value V.I. Class I Shares		1,455,733.209		21,242,688		20,016,332		(95	)		20,016,237		6,249,446		2.327884		11.242195
BlackRock Global Allocation V.I. Class I Shares		625,717.661		10,066,626		10,712,286		-			10,712,286		4,729,879		1.899588		11.464901
BlackRock High Yield V.I. Class I Shares		489,421.952		3,582,718		3,636,405		15,448			3,651,853		1,340,935		2.238958		11.163125
DFA VA Equity Allocation		-		-		-		-			-		-		10.041461		10.042064
DFA VA Global Bond		-		-		-		-			-		-		10.008134		10.008736
DFA VA Global Moderate Allocation		-		-		-		-			-		-		10.028724		10.029328
DFA VA International Small		-		-		-		-			-		-		10.144432		10.145042
DFA VA International Value		-		-		-		-			-		-		10.031312		10.031917
DFA VA Short-Term Fixed		-		-		-		-			-		-		9.998584		9.999186
DFA VA U.S. Large Value		-		-		-		-			-		-		10.027809		10.028414
DFA VA U.S. Targeted Value		-		-		-		-			-		-		9.993026		9.993629
Fidelity® VIP Balanced Service Class 2		24,048,468.796		407,297,859		457,401,876		(154	)		457,401,722		125,709,751		1.746019		17.713821
Fidelity® VIP Contrafund® Initial Class		5,604.854		177,882		208,332		18			208,350		44,170		2.285928		21.135276
Fidelity® VIP Contrafund® Service Class 2		18,597,752.819		608,345,801		671,378,877		87			671,378,964		122,971,431		1.961468		20.738773
Fidelity® VIP Equity-Income Initial Class		1,953.451		39,829		46,434		(3	)		46,431		22,709		1.824600		12.435072
Fidelity® VIP Equity-Income Service Class 2		1,797,130.506		37,135,934		41,513,715		206			41,513,921		18,185,698		1.528339		12.479078
Fidelity® VIP Growth Initial Class		281.934		16,058		22,298		23			22,321		7,797		2.765269		17.388184
Fidelity® VIP Growth Service Class 2		505,016.689		25,244,719		39,103,442		97			39,103,539		14,824,936		2.304858		17.100992
Fidelity® VIP Growth Opportunities Service Class 2		62,524.105		1,814,403		3,004,283		36			3,004,319		862,593		2.648253		20.181601
Fidelity® VIP Mid Cap Initial Class		1,682.117		55,514		55,426		(1	)		55,425		18,009		1.802422		17.954380
Fidelity® VIP Mid Cap Service Class 2		11,168,360.091		358,446,625		354,595,433		(222	)		354,595,211		68,400,272		1.719714		17.617757
Fidelity® VIP Value Strategies Initial Class		25,624.049		336,664		341,056		(3	)		341,053		81,496		1.887089		17.143663
Fidelity® VIP Value Strategies Service Class 2		12,477,084.556		165,107,507		167,567,246		138			167,567,384		41,539,468		0.431267		16.808811

See accompanying notes. 2

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2019

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
Franklin Allocation Class 4 Shares		10,616,351.836	$	75,726,255	$	73,995,972	$	(153	)	$	73,995,819		33,952,154	$	1.488244	$	11.522228
Franklin Income Class 2 Shares		3,633,493.294		54,766,986		57,808,878		(217	)		57,808,661		36,589,063		1.370104		11.723515
Franklin Mutual Shares Class 2 Shares		728,887.681		13,070,300		13,710,377		59			13,710,436		9,029,439		1.331151		11.538677
Franklin Templeton Foreign Class 2 Shares		1,584,134.265		22,053,181		22,066,990		202			22,067,192		21,486,432		0.920506		10.693765
Invesco V.I. American Franchise Series II Shares		106,475.334		5,011,560		6,803,774		93			6,803,867		2,917,087		2.166813		15.806723
Janus Henderson - Enterprise Service Shares		286,101.332		14,662,586		22,868,079		(112	)		22,867,967		7,606,776		1.941520		16.179423
Janus Henderson - Global Research Service Shares		455,212.030		14,576,564		25,159,569		32			25,159,601		16,122,487		1.157908		14.453939
Janus Henderson - Mid Cap Value Service Shares		194,613.216		3,041,365		3,137,165		(22	)		3,137,143		1,112,449		1.874359		12.152028
MFS® New Discovery Service Class		2,480,009.181		40,298,245		44,689,765		92			44,689,857		12,964,008		2.091494		16.693531
MFS® Total Return Service Class		1,702,007.181		34,597,511		41,580,035		91			41,580,126		19,874,828		1.522898		12.155997
NVIT Emerging Markets Class D Shares		1,587.329		16,074		21,048		-			21,048		1,524		13.017488		13.897395
Rational Insider Buying VA		141,339.572		1,808,338		1,681,941		46			1,681,987		885,646		1.693544		12.852108
Rational Trend Aggregation VA		89,621.331		1,095,769		1,003,759		16			1,003,775		728,389		1.227518		9.616188
State Street Total Return V.I.S. Class 3 Shares		3,291,349.675		55,899,840		52,200,806		(15	)		52,200,791		21,706,994		1.416357		14.248531
TA 60/40 Allocation Service Class		2,248,583.504		22,940,372		25,139,164		(3	)		25,139,161		3,823,378		1.121332		11.552036
TA Aegon High Yield Bond Initial Class		9,303,741.049		71,917,649		72,383,105		(58	)		72,383,047		29,667,346		1.308651		13.512196
TA Aegon High Yield Bond Service Class		19,657,031.182		155,697,313		155,487,117		87			155,487,204		31,316,439		1.490983		13.168392
TA Aegon U.S. Government Securities Initial Class		5,771,034.910		64,970,950		63,019,701		159			63,019,860		38,276,111		1.039926		10.629544
TA Aegon U.S. Government Securities Service Class		16,957,939.967		191,898,198		191,285,563		(248	)		191,285,315		70,935,391		1.063947		10.715070
TA American Funds Managed Risk - Balanced Service Class		78,970,761.403		851,645,104		940,541,768		(678	)		940,541,090		76,825,970		11.370637		12.842299
TA Barrow Hanley Dividend Focused Initial Class		14,346,254.284		257,629,082		323,794,959		223			323,795,182		116,924,848		1.403742		18.085286
TA Barrow Hanley Dividend Focused Service Class		7,259,204.100		157,044,415		163,985,421		183			163,985,604		39,289,800		1.481093		17.608666
TA BlackRock Global Allocation Service Class		75,523,449.144		1,014,801,203		1,137,383,144		(51	)		1,137,383,093		409,496,790		1.313989		13.713017
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		27,064,514.897		256,478,369		271,457,084		(16	)		271,457,068		25,329,115		10.115370		11.522436
TA BlackRock Global Allocation Managed Risk - Growth Service Class		19,391,681.739		182,595,346		196,825,570		(149	)		196,825,421		18,027,295		10.331526		12.056512
TA BlackRock Global Real Estate Securities Initial Class		3,140,656.849		38,793,643		42,084,802		131			42,084,933		14,634,220		1.179595		12.822063
TA BlackRock Global Real Estate Securities Service Class		6,106,239.584		79,989,152		86,036,916		(130	)		86,036,786		24,184,329		1.139268		12.491824
TA BlackRock Government Money Market Initial Class		88,720,227.663		88,720,226		88,720,228		(338	)		88,719,890		82,743,032		0.795145		10.003450
TA BlackRock Government Money Market Service Class		348,883,106.762		348,883,104		348,883,107		(1,879	)		348,881,228		155,242,739		0.781551		10.030370
TA BlackRock iShares Edge 100 Service Class		3,471,120.426		43,847,627		49,637,022		(5	)		49,637,017		3,371,713		12.829046		15.243939

See accompanying notes. 3

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2019

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
TA BlackRock iShares Edge 40 Initial Class		1,916,544.436	$	18,086,597	$	17,996,352	$	199		$	17,996,551		9,936,931	$	1.260072	$	11.707637
TA BlackRock iShares Edge 40 Service Class		31,383,362.210		285,965,859		292,492,936		(7	)		292,492,929		115,789,426		1.102629		12.913756
TA BlackRock iShares Edge 50 Service Class		23,763,504.249		277,436,287		301,321,234		(35	)		301,321,199		24,058,879		11.544790		12.969490
TA BlackRock iShares Edge 75 Service Class		8,633,026.407		106,979,138		117,927,141		6			117,927,147		8,767,414		12.175006		13.962134
TA BlackRock Tactical Allocation Service Class		79,047,454.604		1,218,139,766		1,256,854,528		101			1,256,854,629		361,724,078		1.329769		14.348419
TA Greystone International Growth Initial Class		9,964,974.486		82,304,959		82,908,588		(285	)		82,908,303		46,784,649		1.325532		13.829997
TA Greystone International Growth Service Class		12,493,319.025		102,883,962		101,695,617		(274	)		101,695,343		19,878,211		1.195671		13.480466
TA International Equity Index Service Class		3,344,207.775		35,897,954		38,023,642		12			38,023,654		3,400,933		10.797802		11.473030
TA Janus Balanced Service Class		59,380,461.919		833,456,705		998,779,369		(111	)		998,779,258		184,402,723		1.542530		17.294286
TA Janus Mid-Cap Growth Initial Class		2,206,842.298		68,762,464		87,346,818		(168	)		87,346,650		38,655,012		1.795996		19.589675
TA Janus Mid-Cap Growth Service Class		3,895,869.876		122,238,320		146,913,253		103			146,913,356		20,310,940		1.757537		19.079610
TA JPMorgan Asset Allocation - Conservative Initial Class		14,693,708.022		154,014,406		156,634,928		5,869			156,640,797		83,056,161		1.329137		11.807140
TA JPMorgan Asset Allocation - Conservative Service Class		94,676,643.099		979,386,972		995,998,285		(139	)		995,998,146		338,740,194		1.252921		13.167548
TA JPMorgan Asset Allocation - Growth Initial Class		22,041,455.730		233,943,541		276,399,855		28			276,399,883		116,876,305		1.595850		13.498283
TA JPMorgan Asset Allocation - Growth Service Class		17,994,377.428		205,915,440		223,490,168		11			223,490,179		56,218,037		1.387149		16.876109
TA JPMorgan Asset Allocation - Moderate Initial Class		31,221,828.156		345,763,441		374,974,156		(183	)		374,973,973		179,888,900		1.437501		12.275583
TA JPMorgan Asset Allocation - Moderate Service Class		480,266,931.596		5,504,198,596		5,681,557,801		552			5,681,558,353		1,411,687,562		1.336856		14.180773
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		39,789,453.989		459,190,199		494,980,808		(22	)		494,980,786		221,095,017		1.538250		12.821497
TA JPMorgan Asset Allocation - Moderate Growth Service Class		267,546,478.076		3,121,073,335		3,277,444,356		(342	)		3,277,444,014		1,072,176,193		1.361843		15.374127
TA JPMorgan Core Bond Service Class		18,899,128.557		261,993,552		267,800,652		(41	)		267,800,611		63,811,767		1.068445		11.413570
TA JPMorgan Enhanced Index Initial Class		6,152,098.175		116,501,696		135,407,681		(61	)		135,407,620		41,798,145		2.119775		21.859789
TA JPMorgan Enhanced Index Service Class		3,628,558.471		72,128,186		79,574,287		19			79,574,306		9,090,987		2.036622		21.302258
TA JPMorgan International Moderate Growth Initial Class		10,039.520		92,143		100,194		1			100,195		69,370		1.444364		12.088324
TA JPMorgan International Moderate Growth Service Class		56,325,625.470		534,212,222		556,497,180		77			556,497,257		263,802,109		1.033962		12.909243
TA JPMorgan Mid Cap Value Service Class		14,870,175.048		253,320,500		237,476,696		(131	)		237,476,565		41,359,300		1.593432		18.373288
TA JPMorgan Tactical Allocation Service Class		76,863,973.098		1,129,556,229		1,220,599,893		(232	)		1,220,599,661		260,751,494		1.210690		12.911714
TA Legg Mason Dynamic Allocation - Balanced Service Class		80,751,084.556		956,794,307		1,048,149,078		(412	)		1,048,148,666		188,777,088		1.165230		13.295055
TA Legg Mason Dynamic Allocation - Growth Service Class		32,685,101.838		405,925,360		447,785,895		(276	)		447,785,619		87,000,387		1.291710		13.860477
TA Levin Large Cap Value Service Class		1,043,322.122		10,415,834		10,944,449		1			10,944,450		1,468,558		1.023956		10.548792

See accompanying notes. 4

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2019

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
TA Madison Diversified Income Service Class		12,961,524.534	$	160,619,844	$	179,387,500	$	36		$	179,387,536		51,519,543	$	1.413524	$	13.855150
TA Managed Risk - Balanced ETF Service Class		434,141,720.803		5,020,032,773		5,570,038,278		(172	)		5,570,038,106		1,162,728,895		1.182569		13.805374
TA Managed Risk - Conservative ETF Service Class		53,248,249.240		640,150,075		666,135,598		(134	)		666,135,464		210,974,386		1.196153		13.194429
TA Managed Risk - Growth ETF Service Class		228,265,172.100		2,310,932,954		2,476,677,117		70			2,476,677,187		735,600,165		1.329704		14.924205
TA Market Participation Strategy Service Class		33,646,145.780		392,359,418		393,659,906		231			393,660,137		75,395,519		1.363611		14.947930
TA Morgan Stanley Capital Growth Initial Class		20,175,607.072		348,153,401		372,441,707		(54	)		372,441,653		95,615,249		2.888357		17.724522
TA Morgan Stanley Capital Growth Service Class		20,339,644.935		355,524,882		362,045,680		136			362,045,816		31,609,616		2.705198		28.633381
TA Multi-Managed Balanced Initial Class		6,249,859.924		87,793,221		97,122,823		(78	)		97,122,745		34,030,880		1.865642		12.838728
TA Multi-Managed Balanced Service Class		83,115,878.339		1,137,685,002		1,261,699,033		4			1,261,699,037		193,463,242		1.542353		16.935426
TA Multi-Manager Alternative Strategies Service Class		443,839.804		4,436,906		4,522,728		20			4,522,748		443,014		9.827363		10.759892
TA PIMCO Tactical - Balanced Service Class		43,786,414.528		511,401,860		545,140,861		(203	)		545,140,658		133,079,664		1.182091		14.242665
TA PIMCO Tactical - Conservative Service Class		21,162,038.669		240,762,996		257,753,631		(35	)		257,753,596		63,063,445		1.113454		13.812809
TA PIMCO Tactical - Growth Service Class		27,872,645.863		317,809,735		344,227,176		350			344,227,526		67,856,653		1.164471		14.795020
TA PIMCO Total Return Initial Class		13,825,519.653		157,691,120		162,588,111		(4,344	)		162,583,767		97,537,181		1.098172		10.894618
TA PIMCO Total Return Service Class		61,924,133.866		709,625,584		721,416,160		104			721,416,264		289,976,616		1.129466		11.292052
TA PineBridge Inflation Opportunities Service Class		14,127,551.680		145,246,330		148,339,293		(198	)		148,339,095		68,795,573		0.973687		10.721312
TA ProFunds UltraBear Service Class (OAM)		45,108,666.300		20,275,516		12,630,427		157			12,630,584		528,747,957		0.022659		4.277245
TA QS Investors Active Asset Allocation - Conservative Service Class		31,362,754.530		331,690,807		339,345,004		(70	)		339,344,934		121,522,304		1.124829		12.586417
TA QS Investors Active Asset Allocation - Moderate Service Class		115,042,780.141		1,305,409,071		1,331,044,966		100			1,331,045,066		333,714,080		1.182371		12.826137
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		45,590,290.803		506,728,044		522,008,830		304			522,009,134		167,991,889		1.175003		13.178551
TA Small/Mid Cap Value Initial Class		5,880,399.406		114,155,749		114,726,592		(1	)		114,726,591		18,085,702		1.942232		18.992028
TA Small/Mid Cap Value Service Class		7,908,534.013		152,011,138		149,629,464		44			149,629,508		26,380,984		1.900955		18.502409
TA T. Rowe Price Small Cap Initial Class		8,305,717.561		118,224,478		136,379,882		(135	)		136,379,747		39,725,671		2.428118		23.134489
TA T. Rowe Price Small Cap Service Class		20,488,630.326		289,856,030		313,680,930		94			313,681,024		32,292,237		2.376942		22.537792
TA TS&W International Equity Initial Class		5,968,314.763		76,770,672		83,257,991		(91	)		83,257,900		40,250,949		1.148231		13.472175
TA TS&W International Equity Service Class		3,348,090.790		42,601,277		46,304,096		(36	)		46,304,060		10,975,213		1.003110		13.122850
TA U.S. Equity Index Service Class		12,794,704.664		159,008,010		178,742,024		10			178,742,034		13,156,763		13.126540		13.947190
TA WMC US Growth Initial Class		13,404,650.160		378,000,559		460,449,733		(175	)		460,449,558		169,149,426		2.277493		25.976133
TA WMC US Growth Service Class		6,655,482.170		186,840,832		222,359,659		(307	)		222,359,352		29,264,303		2.120650		25.299834
Vanguard® - Capital Growth		-		-		-		-			-		-		9.996130		9.996734

See accompanying notes. 5

Transamerica Life Insurance Company

Separate Account VA B

Statements of Assets and Liabilities

December 31, 2019

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
Vanguard® - Conservative Allocation		-	$	-	$	-	$	-		$	-		-	$	10.017464	$	10.018067
Vanguard® - Diversified Value		-		-		-		-			-		-		10.029067		10.029672
Vanguard® Balanced		-		-		-		-			-		-		10.018668		10.019273
Vanguard® Equity Income		-		-		-		-			-		-		10.011008		10.011612
Vanguard® Equity Index		106,339.200		3,936,033		5,072,380		-			5,072,380		1,106,204		2.537585		22.233362
Vanguard® Global Bond Index		-		-		-		-			-		-		10.003255		10.003858
Vanguard® Growth		-		-		-		-			-		-		10.020892		10.021498
Vanguard® High Yield Bond		-		-		-		-			-		-		9.998584		9.999187
Vanguard® International		97,619.678		2,304,683		2,830,971		(1	)		2,830,970		570,592		1.634573		17.439617
Vanguard® Mid-Cap Index		95,176.196		2,049,806		2,287,084		(4	)		2,287,080		344,777		2.227928		20.015600
Vanguard® Moderate Allocation		-		-		-		-			-		-		10.025212		10.025816
Vanguard® Money Market		-		-		-		-			-		-		10.002871		10.003474
Vanguard® Real Estate Index		52,695.724		679,927		724,039		13			724,052		164,384		1.854851		15.769934
Vanguard® Short-Term Investment Grade		390,977.714		4,142,924		4,238,198		17			4,238,215		834,530		1.122082		11.056859
Vanguard® Total Bond Market Index		300,688.005		3,542,055		3,671,401		-			3,671,401		550,251		1.208206		11.323946
Vanguard® Total International Stock Market Index		-		-		-		-			-		-		10.064487		10.065095
Vanguard® Total Stock Market Index		-		-		-		-			-		-		10.026688		10.027294
Voya Global Perspectives Class S Shares		1,996.738		20,446		22,324		-			22,324		1,913		11.216562		11.895959
Voya Large Cap Value Class S Shares		100.952		1,109		1,215		1			1,216		93		12.302833		13.010274
Voya Strategic Allocation Conservative Class S Shares		-		-		-		-			-		-		11.168304		11.620652
Voya Strategic Allocation Moderate Class S Shares		-		-		-		-			-		-		11.748723		12.224651
Wanger International		14,225.175		378,706		369,855		(4	)		369,851		58,273		1.574251		14.443439
Wanger USA		-		-		-		-			-		-		2.658889		21.867468

See accompanying notes. 6

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	AB Balanced Wealth Strategy Class B Shares			AB Growth and Income Class B Shares			AB Large Cap Growth Class B Shares			American Funds - Asset Allocation Class 2 Shares			American Funds -Bond Class 2 Shares
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
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
Investment Income:
Reinvested Dividends		2,197,252			2,424,069			-			14,772,667			5,733,998
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,499,041			3,432,311			451,954			12,642,052			3,500,990
Net Investment Income (Loss)		698,211			(1,008,242	)		(451,954	)		2,130,615			2,233,008
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		11,398,615			25,480,824			3,928,335			38,619,469			-
Realized Gain (Loss) on Investments		(2,877,363	)		2,342,042			2,842,313			13,318,368			(203,801)
Net Realized Capital Gains (Losses) on Investments		8,521,252			27,822,866			6,770,648			51,937,837			(203,801)
Net Change in Unrealized Appreciation (Depreciation)		4,633,018			18,829,483			2,037,962			77,270,939			13,177,362
Net Gain (Loss) on Investment		13,154,270			46,652,349			8,808,610			129,208,776			12,973,561
Net Increase (Decrease) in Net Assets Resulting from Operations		13,852,481			45,644,107			8,356,656			131,339,391			15,206,569
Increase (Decrease) in Net Assets from Contract Transactions		(1,703,940	)		(7,553,988	)		(4,864,479	)		9,976,394			17,695,800
Total Increase (Decrease) in Net Assets		12,148,541			38,090,119			3,492,177			141,315,785			32,902,369
Net Assets as of December 31, 2019:	$	97,353,579		$	249,977,608		$	31,230,390		$	819,073,416		$	230,089,383

See accompanying notes. ⁽¹⁾  See Footnote 1 7

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, 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, 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
Investment Income:
Reinvested Dividends		4,454,126			8,813,275			3,346,694			459,455			132,353
Investment Expense:
Mortality and Expense Risk and Administrative Charges		9,038,879			7,932,926			3,531,148			294,258			165,744
Net Investment Income (Loss)		(4,584,753	)		880,349			(184,454	)		165,197			(33,391)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		56,711,549			49,216,940			5,420,086			1,618,482			352,740
Realized Gain (Loss) on Investments		5,286,158			(1,716,371	)		843,451			3,117			112,093
Net Realized Capital Gains (Losses) on Investments		61,997,707			47,500,569			6,263,537			1,621,599			464,833
Net Change in Unrealized Appreciation (Depreciation)		80,035,525			55,795,378			34,483,647			2,013,108			1,168,797
Net Gain (Loss) on Investment		142,033,232			103,295,947			40,747,184			3,634,707			1,633,630
Net Increase (Decrease) in Net Assets Resulting from Operations		137,448,479			104,176,296			40,562,730			3,799,904			1,600,239
Increase (Decrease) in Net Assets from Contract Transactions		99,840,350			64,600,533			21,174,894			(1,633,303	)		(1,298,093)
Total Increase (Decrease) in Net Assets		237,288,829			168,776,829			61,737,624			2,166,601			302,146
Net Assets as of December 31, 2019:	$	679,623,629		$	578,289,945		$	248,531,886		$	20,016,237		$	10,712,286

See accompanying notes. ⁽¹⁾  See Footnote 1 8

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	BlackRock High Yield V.I. Class I Shares			DFA VA Equity Allocation		DFA VA Global Bond		DFA VA Global Moderate Allocation		DFA VA International Small
	Subaccount			Subaccount(1)		Subaccount(1)		Subaccount(1)		Subaccount(1)
Net Assets as of December 31, 2017:	$	4,411,875		$	-	$	-	$	-	$	-
Investment Income:
Reinvested Dividends		219,471			-		-		-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		58,048			-		-		-		-
Net Investment Income (Loss)		161,423			-		-		-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-		-		-		-
Realized Gain (Loss) on Investments		(1,123	)		-		-		-		-
Net Realized Capital Gains (Losses) on Investments		(1,123	)		-		-		-		-
Net Change in Unrealized Appreciation (Depreciation)		(313,526	)		-		-		-		-
Net Gain (Loss) on Investment		(314,649	)		-		-		-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		(153,226	)		-		-		-		-
Increase (Decrease) in Net Assets from Contract Transactions		(645,691	)		-		-		-		-
Total Increase (Decrease) in Net Assets		(798,917	)		-		-		-		-
Net Assets as of December 31, 2018:	$	3,612,958		$	-	$	-	$	-	$	-
Investment Income:
Reinvested Dividends		199,545			-		-		-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		54,336			-		-		-		-
Net Investment Income (Loss)		145,209			-		-		-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-		-		-		-
Realized Gain (Loss) on Investments		(15,482	)		-		-		-		-
Net Realized Capital Gains (Losses) on Investments		(15,482	)		-		-		-		-
Net Change in Unrealized Appreciation (Depreciation)		341,344			-		-		-		-
Net Gain (Loss) on Investment		325,862			-		-		-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		471,071			-		-		-		-
Increase (Decrease) in Net Assets from Contract Transactions		(432,176	)		-		-		-		-
Total Increase (Decrease) in Net Assets		38,895			-		-		-		-
Net Assets as of December 31, 2019:	$	3,651,853		$	-	$	-	$	-	$	-

See accompanying notes. ⁽¹⁾  See Footnote 1 9

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	DFA VA International Value		DFA VA Short-Term Fixed		DFA VA U.S. Large Value		DFA VA U.S. Targeted Value		Fidelity® VIP Balanced Service Class 2
	Subaccount(1)		Subaccount(1)		Subaccount(1)		Subaccount(1)		Subaccount
Net Assets as of December 31, 2017:	$	-	$	-	$	-	$	-	$	382,158,570
Investment Income:
Reinvested Dividends		-		-		-		-		5,068,360
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		-		-		-		5,519,528
Net Investment Income (Loss)		-		-		-		-		(451,168)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		-		-		-		19,614,679
Realized Gain (Loss) on Investments		-		-		-		-		6,148,770
Net Realized Capital Gains (Losses) on Investments		-		-		-		-		25,763,449
Net Change in Unrealized Appreciation (Depreciation)		-		-		-		-		(48,459,536)
Net Gain (Loss) on Investment		-		-		-		-		(22,696,087)
Net Increase (Decrease) in Net Assets Resulting from Operations		-		-		-		-		(23,147,255)
Increase (Decrease) in Net Assets from Contract Transactions		-		-		-		-		5,923,849
Total Increase (Decrease) in Net Assets		-		-		-		-		(17,223,406)
Net Assets as of December 31, 2018:	$	-	$	-	$	-	$	-	$	364,935,164
Investment Income:
Reinvested Dividends		-		-		-		-		6,623,149
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		-		-		-		5,855,846
Net Investment Income (Loss)		-		-		-		-		767,303
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		-		-		-		19,237,310
Realized Gain (Loss) on Investments		-		-		-		-		5,136,333
Net Realized Capital Gains (Losses) on Investments		-		-		-		-		24,373,643
Net Change in Unrealized Appreciation (Depreciation)		-		-		-		-		57,610,293
Net Gain (Loss) on Investment		-		-		-		-		81,983,936
Net Increase (Decrease) in Net Assets Resulting from Operations		-		-		-		-		82,751,239
Increase (Decrease) in Net Assets from Contract Transactions		-		-		-		-		9,715,319
Total Increase (Decrease) in Net Assets		-		-		-		-		92,466,558
Net Assets as of December 31, 2019:	$	-	$	-	$	-	$	-	$	457,401,722

See accompanying notes. ⁽¹⁾  See Footnote 1 10

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Fidelity® VIP Contrafund® Initial Class			Fidelity® VIP Contrafund® Service Class 2			Fidelity® VIP Equity-Income Initial Class			Fidelity® VIP Equity-Income Service Class 2			Fidelity® VIP Growth Initial Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	258,065		$	579,167,529		$	43,356		$	48,184,382		$	18,642
Investment Income:
Reinvested Dividends		1,769			2,494,459			954			879,594			47
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,597			8,300,180			303			666,709			153
Net Investment Income (Loss)		172			(5,805,721	)		651			212,885			(106	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		21,620			51,034,223			1,934			2,172,474			2,671
Realized Gain (Loss) on Investments		2,083			17,151,788			327			1,024,575			258
Net Realized Capital Gains (Losses) on Investments		23,703			68,186,011			2,261			3,197,049			2,929
Net Change in Unrealized Appreciation (Depreciation)		(40,170	)		(105,225,469	)		(6,659	)		(7,643,072	)		(2,912	)
Net Gain (Loss) on Investment		(16,467	)		(37,039,458	)		(4,398	)		(4,446,023	)		17
Net Increase (Decrease) in Net Assets Resulting from Operations		(16,295	)		(42,845,179	)		(3,747	)		(4,233,138	)		(89	)
Increase (Decrease) in Net Assets from Contract Transactions		(20,408	)		(41,551,871	)		(1,576	)		(6,211,153	)		(992	)
Total Increase (Decrease) in Net Assets		(36,703	)		(84,397,050	)		(5,323	)		(10,444,291	)		(1,081	)
Net Assets as of December 31, 2018:	$	221,362		$	494,770,479		$	38,033		$	37,740,091		$	17,561
Investment Income:
Reinvested Dividends		943			1,315,196			864			720,868			53
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,599			8,431,892			306			606,408			158
Net Investment Income (Loss)		(656	)		(7,116,696	)		558			114,460			(105	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		28,268			65,307,186			2,679			2,708,730			1,223
Realized Gain (Loss) on Investments		11,284			4,777,581			247			552,417			245
Net Realized Capital Gains (Losses) on Investments		39,552			70,084,767			2,926			3,261,147			1,468
Net Change in Unrealized Appreciation (Depreciation)		26,129			84,849,473			6,428			5,636,243			4,343
Net Gain (Loss) on Investment		65,681			154,934,240			9,354			8,897,390			5,811
Net Increase (Decrease) in Net Assets Resulting from Operations		65,025			147,817,544			9,912			9,011,850			5,706
Increase (Decrease) in Net Assets from Contract Transactions		(78,037	)		28,790,941			(1,514	)		(5,238,020	)		(946	)
Total Increase (Decrease) in Net Assets		(13,012	)		176,608,485			8,398			3,773,830			4,760
Net Assets as of December 31, 2019:	$	208,350		$	671,378,964		$	46,431		$	41,513,921		$	22,321

See accompanying notes. ⁽¹⁾  See Footnote 1 11

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Fidelity® VIP Growth Service Class 2			Fidelity® VIP Growth Opportunities Service Class 2			Fidelity® VIP Mid Cap Initial Class			Fidelity® VIP Mid Cap Service Class 2			Fidelity® VIP Value Strategies Initial Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	40,016,140		$	2,711,713		$	108,346		$	374,376,908		$	330,169
Investment Income:
Reinvested Dividends		16,492			2,369			652			1,437,146			2,997
Investment Expense:
Mortality and Expense Risk and Administrative Charges		591,086			39,014			666			5,342,934			2,257
Net Investment Income (Loss)		(574,594	)		(36,645	)		(14	)		(3,905,788	)		740
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		5,700,663			150,648			8,670			32,160,139			14,038
Realized Gain (Loss) on Investments		3,611,091			474,380			654			6,025,991			(5,806	)
Net Realized Capital Gains (Losses) on Investments		9,311,754			625,028			9,324			38,186,130			8,232
Net Change in Unrealized Appreciation (Depreciation)		(8,969,884	)		(304,192	)		(23,703	)		(89,722,843	)		(73,222	)
Net Gain (Loss) on Investment		341,870			320,836			(14,379	)		(51,536,713	)		(64,990	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(232,724	)		284,191			(14,393	)		(55,442,501	)		(64,250	)
Increase (Decrease) in Net Assets from Contract Transactions		(6,087,010	)		(649,439	)		(11,283	)		(30,103,231	)		(10,630	)
Total Increase (Decrease) in Net Assets		(6,319,734	)		(365,248	)		(25,676	)		(85,545,732	)		(74,880	)
Net Assets as of December 31, 2018:	$	33,696,406		$	2,346,465		$	82,670		$	288,831,176		$	255,289
Investment Income:
Reinvested Dividends		20,908			-			514			2,263,157			5,152
Investment Expense:
Mortality and Expense Risk and Administrative Charges		562,709			42,297			391			4,781,255			1,963
Net Investment Income (Loss)		(541,801	)		(42,297	)		123			(2,518,098	)		3,189
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,381,287			229,667			9,939			35,860,054			27,000
Realized Gain (Loss) on Investments		2,699,314			148,960			(9,861	)		(3,292,640	)		(21,057	)
Net Realized Capital Gains (Losses) on Investments		5,080,601			378,627			78			32,567,414			5,943
Net Change in Unrealized Appreciation (Depreciation)		5,689,979			537,896			15,696			31,784,357			79,266
Net Gain (Loss) on Investment		10,770,580			916,523			15,774			64,351,771			85,209
Net Increase (Decrease) in Net Assets Resulting from Operations		10,228,779			874,226			15,897			61,833,673			88,398
Increase (Decrease) in Net Assets from Contract Transactions		(4,821,646	)		(216,372	)		(43,142	)		3,930,362			(2,634	)
Total Increase (Decrease) in Net Assets		5,407,133			657,854			(27,245	)		65,764,035			85,764
Net Assets as of December 31, 2019:	$	39,103,539		$	3,004,319		$	55,425		$	354,595,211		$	341,053

See accompanying notes. ⁽¹⁾  See Footnote 1 12

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Fidelity® VIP Value Strategies Service Class 2			Franklin Allocation Class 4 Shares			Franklin Income Class 2 Shares			Franklin Mutual Shares Class 2 Shares			Franklin Templeton Foreign Class 2 Shares
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	149,707,366		$	104,865,929		$	76,044,090		$	17,081,386		$	32,841,409
Investment Income:
Reinvested Dividends		1,011,720			2,663,278			3,328,980			368,906			777,061
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,073,720			1,536,772			1,023,792			233,440			441,133
Net Investment Income (Loss)		(1,062,000	)		1,126,506			2,305,188			135,466			335,928
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		6,379,381			2,179,614			-			574,432			-
Realized Gain (Loss) on Investments		3,097,543			(43,118	)		1,036,646			535,517			406,202
Net Realized Capital Gains (Losses) on Investments		9,476,924			2,136,496			1,036,646			1,109,949			406,202
Net Change in Unrealized Appreciation (Depreciation)		(35,838,580	)		(12,814,671	)		(7,030,985	)		(2,802,329	)		(5,652,067	)
Net Gain (Loss) on Investment		(26,361,656	)		(10,678,175	)		(5,994,339	)		(1,692,380	)		(5,245,865	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(27,423,656	)		(9,551,669	)		(3,689,151	)		(1,556,914	)		(4,909,937	)
Increase (Decrease) in Net Assets from Contract Transactions		(5,287,263	)		(20,304,661	)		(12,420,005	)		(2,199,957	)		(4,608,750	)
Total Increase (Decrease) in Net Assets		(32,710,919	)		(29,856,330	)		(16,109,156	)		(3,756,871	)		(9,518,687	)
Net Assets as of December 31, 2018:	$	116,996,447		$	75,009,599		$	59,934,934		$	13,324,515		$	23,322,722
Investment Income:
Reinvested Dividends		2,122,018			2,521,846			3,242,366			243,769			396,020
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,078,951			1,253,233			888,397			202,021			346,481
Net Investment Income (Loss)		43,067			1,268,613			2,353,969			41,748			49,539
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		12,426,804			4,851,571			979,963			1,303,445			236,381
Realized Gain (Loss) on Investments		(1,185,482	)		(1,012,709	)		682,347			385,893			(95,813	)
Net Realized Capital Gains (Losses) on Investments		11,241,322			3,838,862			1,662,310			1,689,338			140,568
Net Change in Unrealized Appreciation (Depreciation)		27,337,715			7,257,683			4,130,408			852,859			2,141,308
Net Gain (Loss) on Investment		38,579,037			11,096,545			5,792,718			2,542,197			2,281,876
Net Increase (Decrease) in Net Assets Resulting from Operations		38,622,104			12,365,158			8,146,687			2,583,945			2,331,415
Increase (Decrease) in Net Assets from Contract Transactions		11,948,833			(13,378,938	)		(10,272,960	)		(2,198,024	)		(3,586,945	)
Total Increase (Decrease) in Net Assets		50,570,937			(1,013,780	)		(2,126,273	)		385,921			(1,255,530	)
Net Assets as of December 31, 2019:	$	167,567,384		$	73,995,819		$	57,808,661		$	13,710,436		$	22,067,192

See accompanying notes. ⁽¹⁾  See Footnote 1 13

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Invesco V.I. American Franchise Series II Shares			Janus Henderson - Enterprise Service Shares			Janus Henderson - Global Research Service Shares			Janus Henderson - Mid Cap Value Service Shares			MFS® New Discovery Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	7,305,661		$	22,591,758		$	29,147,018		$	3,228,213		$	44,936,194
Investment Income:
Reinvested Dividends		-			30,151			264,104			26,976			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		109,445			336,993			410,761			44,126			682,331
Net Investment Income (Loss)		(109,445	)		(306,842	)		(146,657	)		(17,150	)		(682,331	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		466,002			1,110,104			-			267,993			6,339,944
Realized Gain (Loss) on Investments		540,953			1,657,479			2,273,173			21,836			1,658,627
Net Realized Capital Gains (Losses) on Investments		1,006,955			2,767,583			2,273,173			289,829			7,998,571
Net Change in Unrealized Appreciation (Depreciation)		(1,171,656	)		(2,727,077	)		(4,181,013	)		(738,753	)		(7,955,942	)
Net Gain (Loss) on Investment		(164,701	)		40,506			(1,907,840	)		(448,924	)		42,629
Net Increase (Decrease) in Net Assets Resulting from Operations		(274,146	)		(266,336	)		(2,054,497	)		(466,074	)		(639,702	)
Increase (Decrease) in Net Assets from Contract Transactions		(1,117,449	)		(2,568,178	)		(4,185,499	)		(196,035	)		(6,673,551	)
Total Increase (Decrease) in Net Assets		(1,391,595	)		(2,834,514	)		(6,239,996	)		(662,109	)		(7,313,253	)
Net Assets as of December 31, 2018:	$	5,914,066		$	19,757,244		$	22,907,022		$	2,566,104		$	37,622,941
Investment Income:
Reinvested Dividends		-			11,147			209,044			43,252			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		98,317			335,171			367,067			42,648			649,844
Net Investment Income (Loss)		(98,317	)		(324,024	)		(158,023	)		604			(649,844	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		950,874			1,386,900			1,514,428			220,528			8,415,374
Realized Gain (Loss) on Investments		436,465			1,897,708			1,863,928			(424	)		1,152,956
Net Realized Capital Gains (Losses) on Investments		1,387,339			3,284,608			3,378,356			220,104			9,568,330
Net Change in Unrealized Appreciation (Depreciation)		616,117			3,268,698			2,572,028			490,722			5,011,410
Net Gain (Loss) on Investment		2,003,456			6,553,306			5,950,384			710,826			14,579,740
Net Increase (Decrease) in Net Assets Resulting from Operations		1,905,139			6,229,282			5,792,361			711,430			13,929,896
Increase (Decrease) in Net Assets from Contract Transactions		(1,015,338	)		(3,118,559	)		(3,539,782	)		(140,391	)		(6,862,980	)
Total Increase (Decrease) in Net Assets		889,801			3,110,723			2,252,579			571,039			7,066,916
Net Assets as of December 31, 2019:	$	6,803,867		$	22,867,967		$	25,159,601		$	3,137,143		$	44,689,857

See accompanying notes. ⁽¹⁾  See Footnote 1 14

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	MFS® Total Return Service Class			NVIT Emerging Markets Class D Shares			Rational Insider Buying VA			Rational Trend Aggregation VA			State Street Total Return V.I.S. Class 3 Shares
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	50,663,588		$	21,682		$	2,476,679		$	1,769,682		$	57,477,545
Investment Income:
Reinvested Dividends		901,922			70			15,064			61,560			1,027,740
Investment Expense:
Mortality and Expense Risk and Administrative Charges		684,652			98			32,038			21,256			904,553
Net Investment Income (Loss)		217,270			(28	)		(16,974	)		40,304			123,187
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,076,836			-			100,840			-			10,847,520
Realized Gain (Loss) on Investments		1,923,864			82			(245,228	)		(1,146	)		1,253,802
Net Realized Capital Gains (Losses) on Investments		4,000,700			82			(144,388	)		(1,146	)		12,101,322
Net Change in Unrealized Appreciation (Depreciation)		(7,499,871	)		(3,942	)		9,063			(132,851	)		(16,719,837	)
Net Gain (Loss) on Investment		(3,499,171	)		(3,860	)		(135,325	)		(133,997	)		(4,618,515	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,281,901	)		(3,888	)		(152,299	)		(93,693	)		(4,495,328	)
Increase (Decrease) in Net Assets from Contract Transactions		(6,817,023	)		(285	)		(435,979	)		(305,011	)		(4,370,666	)
Total Increase (Decrease) in Net Assets		(10,098,924	)		(4,173	)		(588,278	)		(398,704	)		(8,865,994	)
Net Assets as of December 31, 2018:	$	40,564,664		$	17,509		$	1,888,401		$	1,370,978		$	48,611,551
Investment Income:
Reinvested Dividends		874,270			414			-			28,140			1,070,124
Investment Expense:
Mortality and Expense Risk and Administrative Charges		618,768			93			26,092			16,336			815,848
Net Investment Income (Loss)		255,502			321			(26,092	)		11,804			254,276
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,117,782			-			330,085			-			-
Realized Gain (Loss) on Investments		1,588,777			68			(315,862	)		(42,404	)		(2,003,683	)
Net Realized Capital Gains (Losses) on Investments		2,706,559			68			14,223			(42,404	)		(2,003,683	)
Net Change in Unrealized Appreciation (Depreciation)		4,069,210			3,432			394,113			105,590			8,292,530
Net Gain (Loss) on Investment		6,775,769			3,500			408,336			63,186			6,288,847
Net Increase (Decrease) in Net Assets Resulting from Operations		7,031,271			3,821			382,244			74,990			6,543,123
Increase (Decrease) in Net Assets from Contract Transactions		(6,015,809	)		(282	)		(588,658	)		(442,193	)		(2,953,883	)
Total Increase (Decrease) in Net Assets		1,015,462			3,539			(206,414	)		(367,203	)		3,589,240
Net Assets as of December 31, 2019:	$	41,580,126		$	21,048		$	1,681,987		$	1,003,775		$	52,200,791

See accompanying notes. ⁽¹⁾  See Footnote 1 15

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA 60/40 Allocation Service Class			TA Aegon High Yield Bond Initial Class			TA Aegon High Yield Bond Service Class			TA Aegon U.S. Government Securities Initial Class
	Subaccount(1)			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	-		$	82,935,784		$	157,652,721		$	65,046,767
Investment Income:
Reinvested Dividends		-			4,803,811			9,081,105			1,801,119
Investment Expense:
Mortality and Expense Risk and Administrative Charges		27,257			1,134,796			2,197,967			909,475
Net Investment Income (Loss)		(27,257	)		3,669,015			6,883,138			891,644
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			-			-
Realized Gain (Loss) on Investments		(9,588	)		(662,004	)		(1,048,014	)		(2,543,945	)
Net Realized Capital Gains (Losses) on Investments		(9,588	)		(662,004	)		(1,048,014	)		(2,543,945	)
Net Change in Unrealized Appreciation (Depreciation)		(361,181	)		(5,738,382	)		(11,960,675	)		831,313
Net Gain (Loss) on Investment		(370,769	)		(6,400,386	)		(13,008,689	)		(1,712,632	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(398,026	)		(2,731,371	)		(6,125,551	)		(820,988	)
Increase (Decrease) in Net Assets from Contract Transactions		7,957,827			(12,687,646	)		(14,115,742	)		(2,011,064	)
Total Increase (Decrease) in Net Assets		7,559,801			(15,419,017	)		(20,241,293	)		(2,832,052	)
Net Assets as of December 31, 2018:	$	7,559,801		$	67,516,767		$	137,411,428		$	62,214,715
Investment Income:
Reinvested Dividends		28,333			4,514,414			8,817,946			1,295,320
Investment Expense:
Mortality and Expense Risk and Administrative Charges		197,245			1,067,545			2,076,125			970,239
Net Investment Income (Loss)		(168,912	)		3,446,869			6,741,821			325,081
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		21,063			-			-			-
Realized Gain (Loss) on Investments		109,459			(381,155	)		(298,140	)		(2,216,242	)
Net Realized Capital Gains (Losses) on Investments		130,522			(381,155	)		(298,140	)		(2,216,242	)
Net Change in Unrealized Appreciation (Depreciation)		2,559,973			5,346,463			10,448,923			4,869,715
Net Gain (Loss) on Investment		2,690,495			4,965,308			10,150,783			2,653,473
Net Increase (Decrease) in Net Assets Resulting from Operations		2,521,583			8,412,177			16,892,604			2,978,554
Increase (Decrease) in Net Assets from Contract Transactions		15,057,777			(3,545,897	)		1,183,172			(2,173,409	)
Total Increase (Decrease) in Net Assets		17,579,360			4,866,280			18,075,776			805,145
Net Assets as of December 31, 2019:	$	25,139,161		$	72,383,047		$	155,487,204		$	63,019,860

See accompanying notes. ⁽¹⁾  See Footnote 1 16

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	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			TA BlackRock Global Allocation Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	198,887,348		$	652,612,767		$	400,085,233		$	184,816,342		$	1,370,732,763
Investment Income:
Reinvested Dividends		4,495,288			6,179,142			7,680,832			3,230,567			14,147,367
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,637,035			9,593,574			5,359,548			2,467,327			17,717,611
Net Investment Income (Loss)		1,858,253			(3,414,432	)		2,321,284			763,240			(3,570,244	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			23,701,607			-			-			13,664,203
Realized Gain (Loss) on Investments		(11,098,320	)		9,808,407			35,262,540			12,052,134			17,963,660
Net Realized Capital Gains (Losses) on Investments		(11,098,320	)		33,510,014			35,262,540			12,052,134			31,627,863
Net Change in Unrealized Appreciation (Depreciation)		7,982,314			(84,432,499	)		(82,401,218	)		(34,763,229	)		(139,096,319	)
Net Gain (Loss) on Investment		(3,116,006	)		(50,922,485	)		(47,138,678	)		(22,711,095	)		(107,468,456	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,257,753	)		(54,336,917	)		(44,817,394	)		(21,947,855	)		(111,038,700	)
Increase (Decrease) in Net Assets from Contract Transactions		121,067,933			126,039,608			(56,370,913	)		(23,679,473	)		(158,671,215	)
Total Increase (Decrease) in Net Assets		119,810,180			71,702,691			(101,188,307	)		(45,627,328	)		(269,709,915	)
Net Assets as of December 31, 2018:	$	318,697,528		$	724,315,458		$	298,896,926		$	139,189,014		$	1,101,022,848
Investment Income:
Reinvested Dividends		3,749,792			10,357,467			7,809,530			3,412,904			10,556,258
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,174,920			10,947,262			4,723,485			2,187,316			15,534,231
Net Investment Income (Loss)		574,872			(589,795	)		3,086,045			1,225,588			(4,977,973	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			19,343,664			47,985,181			23,577,688			46,258,602
Realized Gain (Loss) on Investments		(868,591	)		7,909,277			16,832,285			6,478,014			15,236,495
Net Realized Capital Gains (Losses) on Investments		(868,591	)		27,252,941			64,817,466			30,055,702			61,495,097
Net Change in Unrealized Appreciation (Depreciation)		11,436,754			96,675,825			(5,112,750	)		(1,348,904	)		112,916,895
Net Gain (Loss) on Investment		10,568,163			123,928,766			59,704,716			28,706,798			174,411,992
Net Increase (Decrease) in Net Assets Resulting from Operations		11,143,035			123,338,971			62,790,761			29,932,386			169,434,019
Increase (Decrease) in Net Assets from Contract Transactions		(138,555,248	)		92,886,661			(37,892,505	)		(5,135,796	)		(133,073,774	)
Total Increase (Decrease) in Net Assets		(127,412,213	)		216,225,632			24,898,256			24,796,590			36,360,245
Net Assets as of December 31, 2019:	$	191,285,315		$	940,541,090		$	323,795,182		$	163,985,604		$	1,137,383,093

See accompanying notes. ⁽¹⁾  See Footnote 1 17

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA BlackRock Global Allocation Managed Risk - Balanced Service Class			TA BlackRock Global Allocation Managed Risk - Growth Service Class			TA BlackRock Global Real Estate Securities Initial Class			TA BlackRock Global Real Estate Securities Service Class
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	198,315,259		$	208,532,393		$	45,370,142		$	87,690,297
Investment Income:
Reinvested Dividends		2,586,089			2,550,098			3,489,249			6,318,328
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,867,457			2,758,739			611,899			1,140,464
Net Investment Income (Loss)		(281,368	)		(208,641	)		2,877,350			5,177,864
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			1,672,362			-			-
Realized Gain (Loss) on Investments		(1,264,990	)		(1,212,505	)		846,951			67,515
Net Realized Capital Gains (Losses) on Investments		(1,264,990	)		459,857			846,951			67,515
Net Change in Unrealized Appreciation (Depreciation)		(19,185,140	)		(23,964,658	)		(8,522,670	)		(14,750,973	)
Net Gain (Loss) on Investment		(20,450,130	)		(23,504,801	)		(7,675,719	)		(14,683,458	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(20,731,498	)		(23,713,442	)		(4,798,369	)		(9,505,594	)
Increase (Decrease) in Net Assets from Contract Transactions		39,190,066			(5,419,377	)		(4,880,100	)		(9,960,648	)
Total Increase (Decrease) in Net Assets		18,458,568			(29,132,819	)		(9,678,469	)		(19,466,242	)
Net Assets as of December 31, 2018:	$	216,773,827		$	179,399,574		$	35,691,673		$	68,224,055
Investment Income:
Reinvested Dividends		7,293,995			6,251,984			370,613			466,477
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,172,228			2,536,294			616,460			1,103,251
Net Investment Income (Loss)		4,121,767			3,715,690			(245,847	)		(636,774	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			-			-
Realized Gain (Loss) on Investments		(676,577	)		(805,233	)		580,149			370,381
Net Realized Capital Gains (Losses) on Investments		(676,577	)		(805,233	)		580,149			370,381
Net Change in Unrealized Appreciation (Depreciation)		26,642,324			25,498,256			8,035,199			15,958,137
Net Gain (Loss) on Investment		25,965,747			24,693,023			8,615,348			16,328,518
Net Increase (Decrease) in Net Assets Resulting from Operations		30,087,514			28,408,713			8,369,501			15,691,744
Increase (Decrease) in Net Assets from Contract Transactions		24,595,727			(10,982,866	)		(1,976,241	)		2,120,987
Total Increase (Decrease) in Net Assets		54,683,241			17,425,847			6,393,260			17,812,731
Net Assets as of December 31, 2019:	$	271,457,068		$	196,825,421		$	42,084,933		$	86,036,786

See accompanying notes. ⁽¹⁾  See Footnote 1 18

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA BlackRock Government Money Market Initial Class			TA BlackRock Government Money Market Service Class			TA BlackRock iShares Edge 100 Service Class			TA BlackRock iShares Edge 40 Initial Class			TA BlackRock iShares Edge 40 Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	89,165,490		$	296,558,369		$	39,921,039		$	19,894,941		$	324,322,394
Investment Income:
Reinvested Dividends		1,579,630			2,621,215			499,500			351,672			5,013,195
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,363,382			4,237,802			484,094			273,732			4,171,345
Net Investment Income (Loss)		216,248			(1,616,587	)		15,406			77,940			841,850
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			487,976			-			-
Realized Gain (Loss) on Investments		-			-			2,206,755			563,431			6,384,143
Net Realized Capital Gains (Losses) on Investments		-			-			2,694,731			563,431			6,384,143
Net Change in Unrealized Appreciation (Depreciation)		-			-			(5,174,265	)		(1,671,886	)		(24,843,508	)
Net Gain (Loss) on Investment		-			-			(2,479,534	)		(1,108,455	)		(18,459,365	)
Net Increase (Decrease) in Net Assets Resulting from Operations		216,248			(1,616,587	)		(2,464,128	)		(1,030,515	)		(17,617,515	)
Increase (Decrease) in Net Assets from Contract Transactions		3,354,828			44,939,274			(2,536,990	)		(2,026,981	)		(29,431,955	)
Total Increase (Decrease) in Net Assets		3,571,076			43,322,687			(5,001,118	)		(3,057,496	)		(47,049,470	)
Net Assets as of December 31, 2018:	$	92,736,566		$	339,881,056		$	34,919,921		$	16,837,445		$	277,272,924
Investment Income:
Reinvested Dividends		1,686,454			5,653,632			626,168			391,854			5,645,815
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,366,550			4,440,272			473,704			261,366			3,904,379
Net Investment Income (Loss)		319,904			1,213,360			152,464			130,488			1,741,436
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			1,219,459			2,317,945			37,870,056
Realized Gain (Loss) on Investments		-			-			1,898,312			226,711			5,303,499
Net Realized Capital Gains (Losses) on Investments		-			-			3,117,771			2,544,656			43,173,555
Net Change in Unrealized Appreciation (Depreciation)		-			-			5,075,222			(458,790	)		(8,549,938	)
Net Gain (Loss) on Investment		-			-			8,192,993			2,085,866			34,623,617
Net Increase (Decrease) in Net Assets Resulting from Operations		319,904			1,213,360			8,345,457			2,216,354			36,365,053
Increase (Decrease) in Net Assets from Contract Transactions		(4,336,580	)		7,786,812			6,371,639			(1,057,248	)		(21,145,048	)
Total Increase (Decrease) in Net Assets		(4,016,676	)		9,000,172			14,717,096			1,159,106			15,220,005
Net Assets as of December 31, 2019:	$	88,719,890		$	348,881,228		$	49,637,017		$	17,996,551		$	292,492,929

See accompanying notes. ⁽¹⁾  See Footnote 1 19

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA BlackRock iShares Edge 50 Service Class			TA BlackRock iShares Edge 75 Service Class			TA BlackRock Tactical Allocation Service Class			TA Greystone International Growth Initial Class			TA Greystone International Growth Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	63,218,179		$	26,367,946		$	1,483,799,252		$	86,501,729		$	116,136,840
Investment Income:
Reinvested Dividends		934,670			366,297			13,538,055			1,034,176			1,010,086
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,192,147			475,470			19,357,222			1,215,170			1,461,482
Net Investment Income (Loss)		(257,477	)		(109,173	)		(5,819,167	)		(180,994	)		(451,396	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		553,348			210,784			61,423,750			439,658			545,933
Realized Gain (Loss) on Investments		1,188,982			815,599			14,676,114			3,167,716			2,772,957
Net Realized Capital Gains (Losses) on Investments		1,742,330			1,026,383			76,099,864			3,607,374			3,318,890
Net Change in Unrealized Appreciation (Depreciation)		(6,443,198	)		(4,774,889	)		(146,301,675	)		(20,077,369	)		(23,762,175	)
Net Gain (Loss) on Investment		(4,700,868	)		(3,748,506	)		(70,201,811	)		(16,469,995	)		(20,443,285	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(4,958,345	)		(3,857,679	)		(76,020,978	)		(16,650,989	)		(20,894,681	)
Increase (Decrease) in Net Assets from Contract Transactions		78,270,232			37,636,794			(173,996,350	)		731,991			(10,800,517	)
Total Increase (Decrease) in Net Assets		73,311,887			33,779,115			(250,017,328	)		(15,918,998	)		(31,695,198	)
Net Assets as of December 31, 2018:	$	136,530,066		$	60,147,061		$	1,233,781,924		$	70,582,731		$	84,441,642
Investment Income:
Reinvested Dividends		1,969,582			878,838			27,573,072			1,259,165			1,298,907
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,483,236			1,113,578			17,551,880			1,135,974			1,270,664
Net Investment Income (Loss)		(513,654	)		(234,740	)		10,021,192			123,191			28,243
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		328,264			343,237			58,205,494			12,642,872			15,913,433
Realized Gain (Loss) on Investments		1,523,470			1,664,980			9,408,834			1,389,794			(55,812	)
Net Realized Capital Gains (Losses) on Investments		1,851,734			2,008,217			67,614,328			14,032,666			15,857,621
Net Change in Unrealized Appreciation (Depreciation)		25,003,545			12,561,203			104,577,838			3,340,386			5,485,976
Net Gain (Loss) on Investment		26,855,279			14,569,420			172,192,166			17,373,052			21,343,597
Net Increase (Decrease) in Net Assets Resulting from Operations		26,341,625			14,334,680			182,213,358			17,496,243			21,371,840
Increase (Decrease) in Net Assets from Contract Transactions		138,449,508			43,445,406			(159,140,653	)		(5,170,671	)		(4,118,139	)
Total Increase (Decrease) in Net Assets		164,791,133			57,780,086			23,072,705			12,325,572			17,253,701
Net Assets as of December 31, 2019:	$	301,321,199		$	117,927,147		$	1,256,854,629		$	82,908,303		$	101,695,343

See accompanying notes. ⁽¹⁾  See Footnote 1 20

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	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			TA JPMorgan Asset Allocation - Conservative Initial Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	6,948,109		$	836,976,066		$	73,761,288		$	83,552,225		$	171,462,292
Investment Income:
Reinvested Dividends		59,350			12,660,967			45,377			-			3,001,075
Investment Expense:
Mortality and Expense Risk and Administrative Charges		183,098			11,792,056			1,155,201			1,297,601			2,489,809
Net Investment Income (Loss)		(123,748	)		868,911			(1,109,824	)		(1,297,601	)		511,266
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		33,317			20,853,678			3,366,181			4,267,026			6,774,998
Realized Gain (Loss) on Investments		(77,179	)		19,406,380			2,475,641			(16,669	)		860,650
Net Realized Capital Gains (Losses) on Investments		(43,862	)		40,260,058			5,841,822			4,250,357			7,635,648
Net Change in Unrealized Appreciation (Depreciation)		(2,630,636	)		(54,836,781	)		(6,344,302	)		(6,211,549	)		(16,899,790	)
Net Gain (Loss) on Investment		(2,674,498	)		(14,576,723	)		(502,480	)		(1,961,192	)		(9,264,142	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(2,798,246	)		(13,707,812	)		(1,612,304	)		(3,258,793	)		(8,752,876	)
Increase (Decrease) in Net Assets from Contract Transactions		12,117,307			17,648,306			(4,246,526	)		6,073,369			(16,065,938	)
Total Increase (Decrease) in Net Assets		9,319,061			3,940,494			(5,858,830	)		2,814,576			(24,818,814	)
Net Assets as of December 31, 2018:	$	16,267,170		$	840,916,560		$	67,902,458		$	86,366,801		$	146,643,478
Investment Income:
Reinvested Dividends		334,189			12,795,919			59,569			-			4,021,659
Investment Expense:
Mortality and Expense Risk and Administrative Charges		337,267			12,702,405			1,224,394			1,618,318			2,369,211
Net Investment Income (Loss)		(3,078	)		93,514			(1,164,825	)		(1,618,318	)		1,652,448
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			41,824,793			4,349,173			6,837,388			5,700,562
Realized Gain (Loss) on Investments		(135,583	)		20,844,499			1,641,706			1,897,475			(878,145	)
Net Realized Capital Gains (Losses) on Investments		(135,583	)		62,669,292			5,990,879			8,734,863			4,822,417
Net Change in Unrealized Appreciation (Depreciation)		4,464,035			105,890,877			18,470,273			24,665,173			10,925,791
Net Gain (Loss) on Investment		4,328,452			168,560,169			24,461,152			33,400,036			15,748,208
Net Increase (Decrease) in Net Assets Resulting from Operations		4,325,374			168,653,683			23,296,327			31,781,718			17,400,656
Increase (Decrease) in Net Assets from Contract Transactions		17,431,110			(10,790,985	)		(3,852,135	)		28,764,837			(7,403,337	)
Total Increase (Decrease) in Net Assets		21,756,484			157,862,698			19,444,192			60,546,555			9,997,319
Net Assets as of December 31, 2019:	$	38,023,654		$	998,779,258		$	87,346,650		$	146,913,356		$	156,640,797

See Accompanying Notes. ⁽¹⁾  See Footnote 1 21

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA JPMorgan Asset Allocation - Conservative Service Class			TA JPMorgan Asset Allocation - Growth Initial Class			TA JPMorgan Asset Allocation - Growth Service Class			TA JPMorgan Asset Allocation - Moderate Initial Class			TA JPMorgan Asset Allocation - Moderate Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	1,060,315,451		$	298,478,723		$	221,484,340		$	416,447,113		$	5,252,747,161
Investment Income:
Reinvested Dividends		15,847,756			5,223,935			3,521,544			6,928,437			81,347,678
Investment Expense:
Mortality and Expense Risk and Administrative Charges		13,742,943			4,305,863			3,002,950			5,997,673			69,686,661
Net Investment Income (Loss)		2,104,813			918,072			518,594			930,764			11,661,017
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		41,677,776			18,191,915			14,076,903			18,845,225			256,019,570
Realized Gain (Loss) on Investments		4,529,697			19,457,960			10,244,804			11,850,980			61,697,605
Net Realized Capital Gains (Losses) on Investments		46,207,473			37,649,875			24,321,707			30,696,205			317,717,175
Net Change in Unrealized Appreciation (Depreciation)		(103,685,355	)		(70,044,986	)		(49,804,894	)		(57,132,801	)		(677,778,857	)
Net Gain (Loss) on Investment		(57,477,882	)		(32,395,111	)		(25,483,187	)		(26,436,596	)		(360,061,682	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(55,373,069	)		(31,477,039	)		(24,964,593	)		(25,505,832	)		(348,400,665	)
Increase (Decrease) in Net Assets from Contract Transactions		(94,266,024	)		(27,107,213	)		(17,341,615	)		(30,993,241	)		14,217,256
Total Increase (Decrease) in Net Assets		(149,639,093	)		(58,584,252	)		(42,306,208	)		(56,499,073	)		(334,183,409	)
Net Assets as of December 31, 2018:	$	910,676,358		$	239,894,471		$	179,178,132		$	359,948,040		$	4,918,563,752
Investment Income:
Reinvested Dividends		21,899,427			4,527,036			3,022,979			7,966,067			103,500,480
Investment Expense:
Mortality and Expense Risk and Administrative Charges		12,634,475			4,008,069			2,792,683			5,593,563			68,505,750
Net Investment Income (Loss)		9,264,952			518,967			230,296			2,372,504			34,994,730
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		34,604,041			23,963,437			18,922,082			20,645,466			302,364,885
Realized Gain (Loss) on Investments		(245,861	)		8,989,542			6,110,169			6,471,186			31,801,302
Net Realized Capital Gains (Losses) on Investments		34,358,180			32,952,979			25,032,251			27,116,652			334,166,187
Net Change in Unrealized Appreciation (Depreciation)		62,790,804			22,457,917			17,953,400			20,801,701			350,549,046
Net Gain (Loss) on Investment		97,148,984			55,410,896			42,985,651			47,918,353			684,715,233
Net Increase (Decrease) in Net Assets Resulting from Operations		106,413,936			55,929,863			43,215,947			50,290,857			719,709,963
Increase (Decrease) in Net Assets from Contract Transactions		(21,092,148	)		(19,424,451	)		1,096,100			(35,264,924	)		43,284,638
Total Increase (Decrease) in Net Assets		85,321,788			36,505,412			44,312,047			15,025,933			762,994,601
Net Assets as of December 31, 2019:	$	995,998,146		$	276,399,883		$	223,490,179		$	374,973,973		$	5,681,558,353

See Accompanying Notes. ⁽¹⁾  See Footnote 1 22

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA JPMorgan Asset Allocation - Moderate Growth Initial Class			TA JPMorgan Asset Allocation - Moderate Growth Service Class			TA JPMorgan Core Bond Service Class			TA JPMorgan Enhanced Index Initial Class			TA JPMorgan Enhanced Index Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	524,868,709		$	3,718,610,494		$	234,929,539		$	127,335,985		$	67,683,559
Investment Income:
Reinvested Dividends		9,390,133			58,762,585			6,770,495			1,384,628			572,214
Investment Expense:
Mortality and Expense Risk and Administrative Charges		7,650,250			51,355,778			3,040,880			1,848,269			951,427
Net Investment Income (Loss)		1,739,883			7,406,807			3,729,615			(463,641	)		(379,213	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		26,047,189			187,392,076			-			5,424,515			2,840,685
Realized Gain (Loss) on Investments		14,059,267			69,163,160			(1,159,861	)		10,283,542			2,899,333
Net Realized Capital Gains (Losses) on Investments		40,106,456			256,555,236			(1,159,861	)		15,708,057			5,740,018
Net Change in Unrealized Appreciation (Depreciation)		(83,530,865	)		(562,233,629	)		(5,870,507	)		(24,335,163	)		(10,260,406	)
Net Gain (Loss) on Investment		(43,424,409	)		(305,678,393	)		(7,030,368	)		(8,627,106	)		(4,520,388	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(41,684,526	)		(298,271,586	)		(3,300,753	)		(9,090,747	)		(4,899,601	)
Increase (Decrease) in Net Assets from Contract Transactions		(33,202,167	)		(307,003,337	)		575,578			(7,223,910	)		(5,547,398	)
Total Increase (Decrease) in Net Assets		(74,886,693	)		(605,274,923	)		(2,725,175	)		(16,314,657	)		(10,446,999	)
Net Assets as of December 31, 2018:	$	449,982,016		$	3,113,335,571		$	232,204,364		$	111,021,328		$	57,236,560
Investment Income:
Reinvested Dividends		10,297,797			62,033,956			5,829,954			1,473,131			667,969
Investment Expense:
Mortality and Expense Risk and Administrative Charges		7,203,295			45,805,115			3,207,349			1,867,272			961,506
Net Investment Income (Loss)		3,094,502			16,228,841			2,622,605			(394,141	)		(293,537	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		39,638,519			273,114,762			-			14,476,252			8,244,698
Realized Gain (Loss) on Investments		7,508,112			36,546,559			(7,598	)		3,942,233			2,224,941
Net Realized Capital Gains (Losses) on Investments		47,146,631			309,661,321			(7,598	)		18,418,485			10,469,639
Net Change in Unrealized Appreciation (Depreciation)		28,677,461			207,656,012			13,619,569			13,119,264			6,856,296
Net Gain (Loss) on Investment		75,824,092			517,317,333			13,611,971			31,537,749			17,325,935
Net Increase (Decrease) in Net Assets Resulting from Operations		78,918,594			533,546,174			16,234,576			31,143,608			17,032,398
Increase (Decrease) in Net Assets from Contract Transactions		(33,919,824	)		(369,437,731	)		19,361,671			(6,757,316	)		5,305,348
Total Increase (Decrease) in Net Assets		44,998,770			164,108,443			35,596,247			24,386,292			22,337,746
Net Assets as of December 31, 2019:	$	494,980,786		$	3,277,444,014		$	267,800,611		$	135,407,620		$	79,574,306

See Accompanying Notes. ⁽¹⁾  See Footnote 1 23

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA JPMorgan International Moderate Growth Initial Class			TA JPMorgan International Moderate Growth Service Class			TA JPMorgan Mid Cap Value Service Class			TA JPMorgan Tactical Allocation Service Class			TA Legg Mason Dynamic Allocation - Balanced Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	95,215		$	660,356,626		$	234,010,120		$	1,290,836,386		$	1,134,168,274
Investment Income:
Reinvested Dividends		2,233			13,470,218			1,432,946			22,962,363			15,067,413
Investment Expense:
Mortality and Expense Risk and Administrative Charges		419			8,981,260			3,201,315			15,281,519			14,001,932
Net Investment Income (Loss)		1,814			4,488,958			(1,768,369	)		7,680,844			1,065,481
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		939			6,298,142			5,152,137			33,757,295			-
Realized Gain (Loss) on Investments		174			12,472,817			(15,026,561	)		16,392,735			9,338,234
Net Realized Capital Gains (Losses) on Investments		1,113			18,770,959			(9,874,424	)		50,150,030			9,338,234
Net Change in Unrealized Appreciation (Depreciation)		(14,415	)		(107,695,361	)		(17,979,187	)		(112,457,264	)		(58,464,232	)
Net Gain (Loss) on Investment		(13,302	)		(88,924,402	)		(27,853,611	)		(62,307,234	)		(49,125,998	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(11,488	)		(84,435,444	)		(29,621,980	)		(54,626,390	)		(48,060,517	)
Increase (Decrease) in Net Assets from Contract Transactions		760			(38,544,128	)		(18,266,603	)		(84,627,921	)		(98,479,266	)
Total Increase (Decrease) in Net Assets		(10,728	)		(122,979,572	)		(47,888,583	)		(139,254,311	)		(146,539,783	)
Net Assets as of December 31, 2018:	$	84,487		$	537,377,054		$	186,121,537		$	1,151,582,075		$	987,628,491
Investment Income:
Reinvested Dividends		2,172			11,037,318			2,563,789			24,774,954			16,395,325
Investment Expense:
Mortality and Expense Risk and Administrative Charges		412			7,716,048			3,049,410			14,706,061			13,284,556
Net Investment Income (Loss)		1,760			3,321,270			(485,621	)		10,068,893			3,110,769
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		7,630			44,291,180			20,249,433			14,785,175			25,956,607
Realized Gain (Loss) on Investments		39			5,339,556			(9,376,975	)		12,322,780			9,350,639
Net Realized Capital Gains (Losses) on Investments		7,669			49,630,736			10,872,458			27,107,955			35,307,246
Net Change in Unrealized Appreciation (Depreciation)		5,186			27,838,581			35,147,700			81,596,842			100,709,631
Net Gain (Loss) on Investment		12,855			77,469,317			46,020,158			108,704,797			136,016,877
Net Increase (Decrease) in Net Assets Resulting from Operations		14,615			80,790,587			45,534,537			118,773,690			139,127,646
Increase (Decrease) in Net Assets from Contract Transactions		1,093			(61,670,384	)		5,820,491			(49,756,104	)		(78,607,471	)
Total Increase (Decrease) in Net Assets		15,708			19,120,203			51,355,028			69,017,586			60,520,175
Net Assets as of December 31, 2019:	$	100,195		$	556,497,257		$	237,476,565		$	1,220,599,661		$	1,048,148,666

See Accompanying Notes. ⁽¹⁾  See Footnote 1 24

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA Legg Mason Dynamic Allocation - Growth Service Class			TA Levin Large Cap Value Service Class			TA Madison Diversified Income Service Class			TA Managed Risk - Balanced ETF Service Class			TA Managed Risk - Conservative ETF Service Class
	Subaccount			Subaccount(1)			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	502,210,785		$	-		$	130,445,023		$	6,047,882,818		$	771,558,640
Investment Income:
Reinvested Dividends		5,806,082			1,482			1,976,292			97,641,728			13,084,632
Investment Expense:
Mortality and Expense Risk and Administrative Charges		6,449,680			6,380			1,800,864			73,668,583			9,394,838
Net Investment Income (Loss)		(643,598	)		(4,898	)		175,428			23,973,145			3,689,794
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			5,124			2,720,664			-			4,837,108
Realized Gain (Loss) on Investments		3,828,946			(30,272	)		1,968,821			54,494,346			5,410,902
Net Realized Capital Gains (Losses) on Investments		3,828,946			(25,148	)		4,689,485			54,494,346			10,248,010
Net Change in Unrealized Appreciation (Depreciation)		(30,755,065	)		(179,166	)		(7,617,650	)		(404,234,504	)		(48,743,422	)
Net Gain (Loss) on Investment		(26,926,119	)		(204,314	)		(2,928,165	)		(349,740,158	)		(38,495,412	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(27,569,717	)		(209,212	)		(2,752,737	)		(325,767,013	)		(34,805,618	)
Increase (Decrease) in Net Assets from Contract Transactions		(44,624,255	)		2,309,422			8,095,572			(423,881,274	)		(65,065,173	)
Total Increase (Decrease) in Net Assets		(72,193,972	)		2,100,210			5,342,835			(749,648,287	)		(99,870,791	)
Net Assets as of December 31, 2018:	$	430,016,813		$	2,100,210		$	135,787,858		$	5,298,234,531		$	671,687,849
Investment Income:
Reinvested Dividends		6,040,645			16,101			2,462,521			107,283,277			13,679,281
Investment Expense:
Mortality and Expense Risk and Administrative Charges		5,936,951			78,908			2,118,885			68,568,677			8,529,586
Net Investment Income (Loss)		103,694			(62,807	)		343,636			38,714,600			5,149,695
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		15,179,641			20,620			4,200,418			142,916,040			32,802,567
Realized Gain (Loss) on Investments		2,775,208			(3,336	)		3,250,970			45,100,331			5,395,206
Net Realized Capital Gains (Losses) on Investments		17,954,849			17,284			7,451,388			188,016,371			38,197,773
Net Change in Unrealized Appreciation (Depreciation)		44,595,902			707,781			11,824,331			497,514,740			25,540,454
Net Gain (Loss) on Investment		62,550,751			725,065			19,275,719			685,531,111			63,738,227
Net Increase (Decrease) in Net Assets Resulting from Operations		62,654,445			662,258			19,619,355			724,245,711			68,887,922
Increase (Decrease) in Net Assets from Contract Transactions		(44,885,639	)		8,181,982			23,980,323			(452,442,136	)		(74,440,307	)
Total Increase (Decrease) in Net Assets		17,768,806			8,844,240			43,599,678			271,803,575			(5,552,385	)
Net Assets as of December 31, 2019:	$	447,785,619		$	10,944,450		$	179,387,536		$	5,570,038,106		$	666,135,464

See Accompanying Notes. ⁽¹⁾  See Footnote 1 25

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	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			TA Multi-Managed Balanced Initial Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	2,942,924,332		$	434,408,630		$	126,618,578		$	91,705,626		$	91,688,505
Investment Income:
Reinvested Dividends		43,797,138			1,514,085			-			-			1,305,412
Investment Expense:
Mortality and Expense Risk and Administrative Charges		36,526,279			5,722,074			2,191,411			1,627,984			1,343,982
Net Investment Income (Loss)		7,270,859			(4,207,989	)		(2,191,411	)		(1,627,984	)		(38,570	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			22,758,494			25,470,999			20,904,609			3,575,667
Realized Gain (Loss) on Investments		30,891,031			8,288,939			9,831,505			4,864,513			1,675,709
Net Realized Capital Gains (Losses) on Investments		30,891,031			31,047,433			35,302,504			25,769,122			5,251,376
Net Change in Unrealized Appreciation (Depreciation)		(259,742,997	)		(42,625,001	)		(26,946,700	)		(21,201,498	)		(9,700,319	)
Net Gain (Loss) on Investment		(228,851,966	)		(11,577,568	)		8,355,804			4,567,624			(4,448,943	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(221,581,107	)		(15,785,557	)		6,164,393			2,939,640			(4,487,513	)
Increase (Decrease) in Net Assets from Contract Transactions		(336,695,914	)		(36,532,420	)		1,930,545			14,089,524			(3,108,542	)
Total Increase (Decrease) in Net Assets		(558,277,021	)		(52,317,977	)		8,094,938			17,029,164			(7,596,055	)
Net Assets as of December 31, 2018:	$	2,384,647,311		$	382,090,653		$	134,713,516		$	108,734,790		$	84,092,450
Investment Income:
Reinvested Dividends		42,797,231			3,518,646			-			-			1,506,296
Investment Expense:
Mortality and Expense Risk and Administrative Charges		32,281,521			5,336,769			2,887,113			2,548,949			1,351,658
Net Investment Income (Loss)		10,515,710			(1,818,123	)		(2,887,113	)		(2,548,949	)		154,638
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		212,911,928			58,220,832			12,616,763			14,649,508			5,711,081
Realized Gain (Loss) on Investments		18,804,655			4,359,375			12,126,792			5,416,085			996,245
Net Realized Capital Gains (Losses) on Investments		231,716,583			62,580,207			24,743,555			20,065,593			6,707,326
Net Change in Unrealized Appreciation (Depreciation)		160,009,671			621,541			20,999,733			16,433,537			9,445,988
Net Gain (Loss) on Investment		391,726,254			63,201,748			45,743,288			36,499,130			16,153,314
Net Increase (Decrease) in Net Assets Resulting from Operations		402,241,964			61,383,625			42,856,175			33,950,181			16,307,952
Increase (Decrease) in Net Assets from Contract Transactions		(310,212,088	)		(49,814,141	)		194,871,962			219,360,845			(3,277,657	)
Total Increase (Decrease) in Net Assets		92,029,876			11,569,484			237,728,137			253,311,026			13,030,295
Net Assets as of December 31, 2019:	$	2,476,677,187		$	393,660,137		$	372,441,653		$	362,045,816		$	97,122,745

See Accompanying Notes. ⁽¹⁾  See Footnote 1 26

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	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			TA PIMCO Tactical - Growth Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	1,284,175,277		$	1,693,399		$	628,788,296		$	282,866,000		$	373,518,260
Investment Income:
Reinvested Dividends		14,847,460			22,797			18,658,999			8,809,747			10,869,857
Investment Expense:
Mortality and Expense Risk and Administrative Charges		16,189,595			28,603			7,944,792			3,617,385			4,918,397
Net Investment Income (Loss)		(1,342,135	)		(5,806	)		10,714,207			5,192,362			5,951,460
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		48,714,193			-			42,700,937			16,690,186			35,212,761
Realized Gain (Loss) on Investments		20,819,384			(23,217	)		4,423,636			778,339			2,226,561
Net Realized Capital Gains (Losses) on Investments		69,533,577			(23,217	)		47,124,573			17,468,525			37,439,322
Net Change in Unrealized Appreciation (Depreciation)		(128,885,983	)		(139,444	)		(104,778,512	)		(39,474,660	)		(74,559,617	)
Net Gain (Loss) on Investment		(59,352,406	)		(162,661	)		(57,653,939	)		(22,006,135	)		(37,120,295	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(60,694,541	)		(168,467	)		(46,939,732	)		(16,813,773	)		(31,168,835	)
Increase (Decrease) in Net Assets from Contract Transactions		(109,676,702	)		1,286,925			(67,325,248	)		(28,255,348	)		(31,289,447	)
Total Increase (Decrease) in Net Assets		(170,371,243	)		1,118,458			(114,264,980	)		(45,069,121	)		(62,458,282	)
Net Assets as of December 31, 2018:	$	1,113,804,034		$	2,811,857		$	514,523,316		$	237,796,879		$	311,059,978
Investment Income:
Reinvested Dividends		17,292,347			26,160			874,129			239,713			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		15,700,112			40,920			7,271,934			3,387,981			4,561,470
Net Investment Income (Loss)		1,592,235			(14,760	)		(6,397,805	)		(3,148,268	)		(4,561,470	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		77,203,898			-			-			-			-
Realized Gain (Loss) on Investments		13,946,970			(14,093	)		1,164,739			33,534			(36,653	)
Net Realized Capital Gains (Losses) on Investments		91,150,868			(14,093	)		1,164,739			33,534			(36,653	)
Net Change in Unrealized Appreciation (Depreciation)		124,185,551			245,520			94,354,402			40,138,371			64,403,621
Net Gain (Loss) on Investment		215,336,419			231,427			95,519,141			40,171,905			64,366,968
Net Increase (Decrease) in Net Assets Resulting from Operations		216,928,654			216,667			89,121,336			37,023,637			59,805,498
Increase (Decrease) in Net Assets from Contract Transactions		(69,033,651	)		1,494,224			(58,503,994	)		(17,066,920	)		(26,637,950	)
Total Increase (Decrease) in Net Assets		147,895,003			1,710,891			30,617,342			19,956,717			33,167,548
Net Assets as of December 31, 2019:	$	1,261,699,037		$	4,522,748		$	545,140,658		$	257,753,596		$	344,227,526

See Accompanying Notes. ⁽¹⁾  See Footnote 1 27

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA PIMCO Total Return Initial Class			TA PIMCO Total Return Service Class			TA PineBridge Inflation Opportunities Service Class			TA ProFunds UltraBear Service Class (OAM)			TA QS Investors Active Asset Allocation - Conservative Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	174,652,447		$	803,609,896		$	173,872,830		$	13,176,394		$	413,363,455
Investment Income:
Reinvested Dividends		4,236,479			18,104,995			2,751,819			-			6,104,859
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,470,480			10,331,170			2,263,201			244,312			4,972,206
Net Investment Income (Loss)		1,765,999			7,773,825			488,618			(244,312	)		1,132,653
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		835,303			3,972,488			-			-			-
Realized Gain (Loss) on Investments		(1,280,843	)		(6,767,030	)		(1,336,184	)		(6,885,074	)		2,479,755
Net Realized Capital Gains (Losses) on Investments		(445,540	)		(2,794,542	)		(1,336,184	)		(6,885,074	)		2,479,755
Net Change in Unrealized Appreciation (Depreciation)		(5,075,373	)		(24,147,025	)		(3,999,746	)		8,531,109			(19,615,118	)
Net Gain (Loss) on Investment		(5,520,913	)		(26,941,567	)		(5,335,930	)		1,646,035			(17,135,363	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,754,914	)		(19,167,742	)		(4,847,312	)		1,401,723			(16,002,710	)
Increase (Decrease) in Net Assets from Contract Transactions		(13,029,812	)		(66,682,839	)		(14,530,388	)		20,446,889			(49,395,080	)
Total Increase (Decrease) in Net Assets		(16,784,726	)		(85,850,581	)		(19,377,700	)		21,848,612			(65,397,790	)
Net Assets as of December 31, 2018:	$	157,867,721		$	717,759,315		$	154,495,130		$	35,025,006		$	347,965,665
Investment Income:
Reinvested Dividends		4,096,823			16,331,128			3,497,099			-			6,782,317
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,509,833			9,767,345			2,087,831			288,058			4,427,169
Net Investment Income (Loss)		1,586,990			6,563,783			1,409,268			(288,058	)		2,355,148
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			-			-			25,680,357
Realized Gain (Loss) on Investments		(1,944	)		(2,044,052	)		(594,665	)		(6,815,895	)		2,015,097
Net Realized Capital Gains (Losses) on Investments		(1,944	)		(2,044,052	)		(594,665	)		(6,815,895	)		27,695,454
Net Change in Unrealized Appreciation (Depreciation)		8,914,092			42,661,676			9,179,315			(5,687,350	)		2,337,458
Net Gain (Loss) on Investment		8,912,148			40,617,624			8,584,650			(12,503,245	)		30,032,912
Net Increase (Decrease) in Net Assets Resulting from Operations		10,499,138			47,181,407			9,993,918			(12,791,303	)		32,388,060
Increase (Decrease) in Net Assets from Contract Transactions		(5,783,092	)		(43,524,458	)		(16,149,953	)		(9,603,119	)		(41,008,791	)
Total Increase (Decrease) in Net Assets		4,716,046			3,656,949			(6,156,035	)		(22,394,422	)		(8,620,731	)
Net Assets as of December 31, 2019:	$	162,583,767		$	721,416,264		$	148,339,095		$	12,630,584		$	339,344,934

See Accompanying Notes. ⁽¹⁾  See Footnote 1 28

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	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			TA Small/Mid Cap Value Service Class
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	1,515,657,257		$	650,551,880		$	135,391,174		$	129,538,718
Investment Income:
Reinvested Dividends		20,853,705			8,032,569			1,143,025			851,714
Investment Expense:
Mortality and Expense Risk and Administrative Charges		18,953,884			8,258,517			1,844,632			1,795,629
Net Investment Income (Loss)		1,899,821			(225,948	)		(701,607	)		(943,915	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			12,368,132			12,606,664
Realized Gain (Loss) on Investments		12,727,873			5,561,064			3,015,730			(966,116	)
Net Realized Capital Gains (Losses) on Investments		12,727,873			5,561,064			15,383,862			11,640,548
Net Change in Unrealized Appreciation (Depreciation)		(92,827,700	)		(48,910,125	)		(30,008,418	)		(26,513,092	)
Net Gain (Loss) on Investment		(80,099,827	)		(43,349,061	)		(14,624,556	)		(14,872,544	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(78,200,006	)		(43,575,009	)		(15,326,163	)		(15,816,459	)
Increase (Decrease) in Net Assets from Contract Transactions		(104,446,228	)		(66,596,758	)		(14,820,301	)		(8,341,474	)
Total Increase (Decrease) in Net Assets		(182,646,234	)		(110,171,767	)		(30,146,464	)		(24,157,933	)
Net Assets as of December 31, 2018:	$	1,333,011,023		$	540,380,113		$	105,244,710		$	105,380,785
Investment Income:
Reinvested Dividends		24,280,233			8,823,944			1,086,176			981,649
Investment Expense:
Mortality and Expense Risk and Administrative Charges		17,397,965			7,126,303			1,650,832			1,794,343
Net Investment Income (Loss)		6,882,268			1,697,641			(564,656	)		(812,694	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		91,801,781			35,006,466			8,651,799			10,441,789
Realized Gain (Loss) on Investments		6,909,576			1,891,934			697,973			(2,125,789	)
Net Realized Capital Gains (Losses) on Investments		98,711,357			36,898,400			9,349,772			8,316,000
Net Change in Unrealized Appreciation (Depreciation)		18,351,805			11,532,385			14,825,264			18,213,090
Net Gain (Loss) on Investment		117,063,162			48,430,785			24,175,036			26,529,090
Net Increase (Decrease) in Net Assets Resulting from Operations		123,945,430			50,128,426			23,610,380			25,716,396
Increase (Decrease) in Net Assets from Contract Transactions		(125,911,387	)		(68,499,405	)		(14,128,499	)		18,532,327
Total Increase (Decrease) in Net Assets		(1,965,957	)		(18,370,979	)		9,481,881			44,248,723
Net Assets as of December 31, 2019:	$	1,331,045,066		$	522,009,134		$	114,726,591		$	149,629,508

See Accompanying Notes. ⁽¹⁾  See Footnote 1 29

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA T. Rowe Price Small Cap Initial Class			TA T. Rowe Price Small Cap Service Class			TA TS&W International Equity Initial Class			TA TS&W International Equity Service Class			TA U.S. Equity Index Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	129,784,292		$	241,993,274		$	85,535,379		$	43,576,774		$	18,585,620
Investment Income:
Reinvested Dividends		-			-			2,061,301			928,154			85,169
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,979,112			3,560,876			1,245,467			602,413			477,235
Net Investment Income (Loss)		(1,979,112	)		(3,560,876	)		815,834			325,741			(392,066	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		6,972,336			13,658,168			-			-			55,027
Realized Gain (Loss) on Investments		8,519,912			7,137,439			2,003,257			615,171			421,454
Net Realized Capital Gains (Losses) on Investments		15,492,248			20,795,607			2,003,257			615,171			476,481
Net Change in Unrealized Appreciation (Depreciation)		(23,943,547	)		(37,549,408	)		(17,678,671	)		(8,331,581	)		(4,011,019	)
Net Gain (Loss) on Investment		(8,451,299	)		(16,753,801	)		(15,675,414	)		(7,716,410	)		(3,534,538	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(10,430,411	)		(20,314,677	)		(14,859,580	)		(7,390,669	)		(3,926,604	)
Increase (Decrease) in Net Assets from Contract Transactions		(5,174,693	)		(11,002,015	)		3,070,398			(202,308	)		32,250,789
Total Increase (Decrease) in Net Assets		(15,605,104	)		(31,316,692	)		(11,789,182	)		(7,592,977	)		28,324,185
Net Assets as of December 31, 2018:	$	114,179,188		$	210,676,582		$	73,746,197		$	35,983,797		$	46,909,805
Investment Income:
Reinvested Dividends		-			-			1,110,047			486,806			515,412
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,927,301			3,699,496			1,163,623			571,529			1,393,588
Net Investment Income (Loss)		(1,927,301	)		(3,699,496	)		(53,576	)		(84,723	)		(878,176	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		13,441,168			30,319,550			1,226,180			657,504			-
Realized Gain (Loss) on Investments		6,005,618			3,394,216			708,350			365,263			2,401,194
Net Realized Capital Gains (Losses) on Investments		19,446,786			33,713,766			1,934,530			1,022,767			2,401,194
Net Change in Unrealized Appreciation (Depreciation)		16,120,170			37,296,641			11,910,780			6,187,515			22,743,215
Net Gain (Loss) on Investment		35,566,956			71,010,407			13,845,310			7,210,282			25,144,409
Net Increase (Decrease) in Net Assets Resulting from Operations		33,639,655			67,310,911			13,791,734			7,125,559			24,266,233
Increase (Decrease) in Net Assets from Contract Transactions		(11,439,096	)		35,693,531			(4,280,031	)		3,194,704			107,565,996
Total Increase (Decrease) in Net Assets		22,200,559			103,004,442			9,511,703			10,320,263			131,832,229
Net Assets as of December 31, 2019:	$	136,379,747		$	313,681,024		$	83,257,900		$	46,304,060		$	178,742,034

See Accompanying Notes. ⁽¹⁾  See Footnote 1 30

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA WMC US Growth Initial Class			TA WMC US Growth Service Class			Vanguard® - Capital Growth		Vanguard® - Conservative Allocation		Vanguard® - Diversified Value
	Subaccount			Subaccount			Subaccount(1)		Subaccount(1)		Subaccount(1)
Net Assets as of December 31, 2017:	$	276,903,733		$	123,555,754		$	-	$	-	$	-
Investment Income:
Reinvested Dividends		1,365,570			352,126			-		-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		4,234,174			1,813,101			-		-		-
Net Investment Income (Loss)		(2,868,604	)		(1,460,975	)		-		-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		23,564,629			10,812,480			-		-		-
Realized Gain (Loss) on Investments		15,423,963			1,503,026			-		-		-
Net Realized Capital Gains (Losses) on Investments		38,988,592			12,315,506			-		-		-
Net Change in Unrealized Appreciation (Depreciation)		(37,477,785	)		(11,992,484	)		-		-		-
Net Gain (Loss) on Investment		1,510,807			323,022			-		-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,357,797	)		(1,137,953	)		-		-		-
Increase (Decrease) in Net Assets from Contract Transactions		(25,977,814	)		(9,326,384	)		-		-		-
Total Increase (Decrease) in Net Assets		(27,335,611	)		(10,464,337	)		-		-		-
Net Assets as of December 31, 2018:	$	249,568,122		$	113,091,417		$	-	$	-	$	-
Investment Income:
Reinvested Dividends		371,499			-			-		-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		4,741,174			2,083,424			-		-		-
Net Investment Income (Loss)		(4,369,675	)		(2,083,424	)		-		-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		24,192,674			12,787,344			-		-		-
Realized Gain (Loss) on Investments		10,842,221			5,458,155			-		-		-
Net Realized Capital Gains (Losses) on Investments		35,034,895			18,245,499			-		-		-
Net Change in Unrealized Appreciation (Depreciation)		69,445,269			31,106,036			-		-		-
Net Gain (Loss) on Investment		104,480,164			49,351,535			-		-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		100,110,489			47,268,111			-		-		-
Increase (Decrease) in Net Assets from Contract Transactions		110,770,947			61,999,824			-		-		-
Total Increase (Decrease) in Net Assets		210,881,436			109,267,935			-		-		-
Net Assets as of December 31, 2019:	$	460,449,558		$	222,359,352		$	-	$	-	$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 31

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Vanguard® Balanced		Vanguard® Equity Income		Vanguard® Equity Index			Vanguard® Global Bond Index		Vanguard® Growth
	Subaccount(1)		Subaccount(1)		Subaccount			Subaccount(1)		Subaccount(1)
Net Assets as of December 31, 2017:	$	-	$	-	$	3,788,631		$	-	$	-
Investment Income:
Reinvested Dividends		-		-		63,247			-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		-		31,467			-		-
Net Investment Income (Loss)		-		-		31,780			-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		-		61,565			-		-
Realized Gain (Loss) on Investments		-		-		96,540			-		-
Net Realized Capital Gains (Losses) on Investments		-		-		158,105			-		-
Net Change in Unrealized Appreciation (Depreciation)		-		-		(443,988	)		-		-
Net Gain (Loss) on Investment		-		-		(285,883	)		-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		-		-		(254,103	)		-		-
Increase (Decrease) in Net Assets from Contract Transactions		-		-		540,770			-		-
Total Increase (Decrease) in Net Assets		-		-		286,667			-		-
Net Assets as of December 31, 2018:	$	-	$	-	$	4,075,298		$	-	$	-
Investment Income:
Reinvested Dividends		-		-		88,937			-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		-		38,875			-		-
Net Investment Income (Loss)		-		-		50,062			-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		-		116,449			-		-
Realized Gain (Loss) on Investments		-		-		85,070			-		-
Net Realized Capital Gains (Losses) on Investments		-		-		201,519			-		-
Net Change in Unrealized Appreciation (Depreciation)		-		-		965,398			-		-
Net Gain (Loss) on Investment		-		-		1,166,917			-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		-		-		1,216,979			-		-
Increase (Decrease) in Net Assets from Contract Transactions		-		-		(219,897	)		-		-
Total Increase (Decrease) in Net Assets		-		-		997,082			-		-
Net Assets as of December 31, 2019:	$	-	$	-	$	5,072,380		$	-	$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 32

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Vanguard® High Yield Bond		Vanguard® International			Vanguard® Mid-Cap Index			Vanguard® Moderate Allocation		Vanguard® Money Market
	Subaccount(1)		Subaccount			Subaccount			Subaccount(1)		Subaccount(1)
Net Assets as of December 31, 2017:	$	-	$	2,310,758		$	1,395,425		$	-	$	-
Investment Income:
Reinvested Dividends		-		18,303			17,685			-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		17,470			11,604			-		-
Net Investment Income (Loss)		-		833			6,081			-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		61,255			71,906			-		-
Realized Gain (Loss) on Investments		-		131,519			52,890			-		-
Net Realized Capital Gains (Losses) on Investments		-		192,774			124,796			-		-
Net Change in Unrealized Appreciation (Depreciation)		-		(449,020	)		(281,070	)		-		-
Net Gain (Loss) on Investment		-		(256,246	)		(156,274	)		-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		-		(255,413	)		(150,193	)		-		-
Increase (Decrease) in Net Assets from Contract Transactions		-		(195,856	)		111,492			-		-
Total Increase (Decrease) in Net Assets		-		(451,269	)		(38,701	)		-		-
Net Assets as of December 31, 2018:	$	-	$	1,859,489		$	1,356,724		$	-	$	-
Investment Income:
Reinvested Dividends		-		30,117			24,716			-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		17,901			15,862			-		-
Net Investment Income (Loss)		-		12,216			8,854			-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		65,677			127,406			-		-
Realized Gain (Loss) on Investments		-		54,065			4,642			-		-
Net Realized Capital Gains (Losses) on Investments		-		119,742			132,048			-		-
Net Change in Unrealized Appreciation (Depreciation)		-		476,067			302,317			-		-
Net Gain (Loss) on Investment		-		595,809			434,365			-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		-		608,025			443,219			-		-
Increase (Decrease) in Net Assets from Contract Transactions		-		363,456			487,137			-		-
Total Increase (Decrease) in Net Assets		-		971,481			930,356			-		-
Net Assets as of December 31, 2019:	$	-	$	2,830,970		$	2,287,080		$	-	$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 33

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Vanguard® Real Estate Index			Vanguard® Short-Term Investment Grade			Vanguard® Total Bond Market Index			Vanguard® Total International Stock Market Index		Vanguard® Total Stock Market Index
	Subaccount			Subaccount			Subaccount			Subaccount(1)		Subaccount(1)
Net Assets as of December 31, 2017:	$	459,283		$	2,959,813		$	2,099,639		$	-	$	-
Investment Income:
Reinvested Dividends		13,743			51,894			50,257			-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,357			20,334			15,774			-		-
Net Investment Income (Loss)		10,386			31,560			34,483			-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		16,852			-			4,254			-		-
Realized Gain (Loss) on Investments		(3,052	)		(6,334	)		(8,784	)		-		-
Net Realized Capital Gains (Losses) on Investments		13,800			(6,334	)		(4,530	)		-		-
Net Change in Unrealized Appreciation (Depreciation)		(53,918	)		(13,811	)		(46,544	)		-		-
Net Gain (Loss) on Investment		(40,118	)		(20,145	)		(51,074	)		-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		(29,732	)		11,415			(16,591	)		-		-
Increase (Decrease) in Net Assets from Contract Transactions		22,913			57,039			115,275			-		-
Total Increase (Decrease) in Net Assets		(6,819	)		68,454			98,684			-		-
Net Assets as of December 31, 2018:	$	452,464		$	3,028,267		$	2,198,323		$	-	$	-
Investment Income:
Reinvested Dividends		14,364			88,869			65,013			-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		4,436			26,164			22,592			-		-
Net Investment Income (Loss)		9,928			62,705			42,421			-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		25,960			-			-			-		-
Realized Gain (Loss) on Investments		2,015			6,591			1,324			-		-
Net Realized Capital Gains (Losses) on Investments		27,975			6,591			1,324			-		-
Net Change in Unrealized Appreciation (Depreciation)		92,650			103,276			168,929			-		-
Net Gain (Loss) on Investment		120,625			109,867			170,253			-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		130,553			172,572			212,674			-		-
Increase (Decrease) in Net Assets from Contract Transactions		141,035			1,037,376			1,260,404			-		-
Total Increase (Decrease) in Net Assets		271,588			1,209,948			1,473,078			-		-
Net Assets as of December 31, 2019:	$	724,052		$	4,238,215		$	3,671,401		$	-	$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 34

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	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
	Subaccount			Subaccount			Subaccount		Subaccount		Subaccount
Net Assets as of December 31, 2017:	$	19,638		$	1,094		$	-	$	-	$	370,644
Investment Income:
Reinvested Dividends		519			20			-		-		7,207
Investment Expense:
Mortality and Expense Risk and Administrative Charges		255			14			-		-		1,713
Net Investment Income (Loss)		264			6			-		-		5,494
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		229			121			-		-		40,485
Realized Gain (Loss) on Investments		30			6			-		-		(14,884	)
Net Realized Capital Gains (Losses) on Investments		259			127			-		-		25,601
Net Change in Unrealized Appreciation (Depreciation)		(2,311	)		(233	)		-		-		(95,017	)
Net Gain (Loss) on Investment		(2,052	)		(106	)		-		-		(69,416	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,788	)		(100	)		-		-		(63,922	)
Increase (Decrease) in Net Assets from Contract Transactions		1,367			14			-		-		(44,107	)
Total Increase (Decrease) in Net Assets		(421	)		(86	)		-		-		(108,029	)
Net Assets as of December 31, 2018:	$	19,217		$	1,008		$	-	$	-	$	262,615
Investment Income:
Reinvested Dividends		700			22			-		-		2,806
Investment Expense:
Mortality and Expense Risk and Administrative Charges		271			15			-		-		1,626
Net Investment Income (Loss)		429			7			-		-		1,180
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		868			79			-		-		32,091
Realized Gain (Loss) on Investments		57			5			-		-		(2,530	)
Net Realized Capital Gains (Losses) on Investments		925			84			-		-		29,561
Net Change in Unrealized Appreciation (Depreciation)		1,814			140			-		-		52,854
Net Gain (Loss) on Investment		2,739			224			-		-		82,415
Net Increase (Decrease) in Net Assets Resulting from Operations		3,168			231			-		-		83,595
Increase (Decrease) in Net Assets from Contract Transactions		(61	)		(23	)		-		-		23,641
Total Increase (Decrease) in Net Assets		3,107			208			-		-		107,236
Net Assets as of December 31, 2019:	$	22,324		$	1,216		$	-	$	-	$	369,851

See Accompanying Notes. ⁽¹⁾  See Footnote 1 35

Transamerica Life Insurance Company

Separate Account VA B

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Wanger USA
	Subaccount
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:	$	-
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, 2019:	$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 36

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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, Transamerica Inspire^SM Variable Annuity, and Transamerica Advisory 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
DFA Investment Dimensions Group Inc.	DFA Investment Dimensions Group Inc.
DFA VA Equity Allocation	DFA VA Equity Allocation Portfolio
DFA VA Global Bond	DFA VA Global Bond Portfolio
DFA VA Global Moderate Allocation	DFA VA Global Moderate Allocation Portfolio
DFA VA International Small	DFA VA International Small Portfolio
DFA VA International Value	DFA VA International Value Portfolio
DFA VA Short-Term Fixed	DFA VA Short-Term Fixed Portfolio
DFA VA U.S. Large Value	DFA VA U.S. Large Value Portfolio

37

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

1.  Organization (continued)

Subaccount Investment by Mutual Fund:
Subaccount	Mutual Fund
DFA Investment Dimensions Group Inc.	DFA Investment Dimensions Group Inc.
DFA VA U.S. Targeted Value	DFA VA U.S. Targeted Value Portfolio
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
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 Allocation Class 4 Shares	Franklin 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

38

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

1.  Organization (continued)

Subaccount Investment by Mutual Fund:
Subaccount	Mutual Fund
Transamerica Series Trust	Transamerica Series Trust
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
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

39

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

1.  Organization (continued)

Subaccount Investment by Mutual Fund:
Subaccount	Mutual Fund
Transamerica Series Trust	Transamerica Series Trust
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 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 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

40

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

1.  Organization (continued)

Subaccount Investment by Mutual Fund:
Subaccount	Mutual Fund
Vanguard® Variable Insurance Fund	Vanguard® Variable Insurance Fund
Vanguard® - Capital Growth	Vanguard® - Capital Growth Portfolio
Vanguard® - Conservative Allocation	Vanguard® - Conservative Allocation Portfolio
Vanguard® - Diversified Value	Vanguard® - Diversified Value Portfolio
Vanguard® Balanced	Vanguard® Balanced Portfolio
Vanguard® Equity Income	Vanguard® Equity Income Portfolio
Vanguard® Equity Index	Vanguard® Equity Index Portfolio
Vanguard® Global Bond Index	Vanguard® Global Bond Index Portfolio
Vanguard® Growth	Vanguard® Growth Portfolio
Vanguard® High Yield Bond	Vanguard® High Yield Bond Portfolio
Vanguard® International	Vanguard® International Portfolio
Vanguard® Mid-Cap Index	Vanguard® Mid-Cap Index Portfolio
Vanguard® Moderate Allocation	Vanguard® Moderate Allocation Portfolio
Vanguard® Money Market	Vanguard® Money Market 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
Vanguard® Total International Stock Market Index	Vanguard® Total International Stock Market Index Portfolio
Vanguard® Total Stock Market Index	Vanguard® Total Stock 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
DFA VA Equity Allocation	December 23, 2019
DFA VA Global Bond	December 23, 2019
DFA VA Global Moderate Allocation	December 23, 2019
DFA VA International Small	December 23, 2019
DFA VA International Value	December 23, 2019
DFA VA Short-Term Fixed	December 23, 2019
DFA VA U.S. Large Value	December 23, 2019
DFA VA U.S. Targeted Value	December 23, 2019
Vanguard® - Capital Growth	December 23, 2019
Vanguard® - Conservative Allocation	December 23, 2019
Vanguard® - Diversified Value	December 23, 2019

41

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

1.  Organization (continued)

Each period reported on reflects a full twelve month period except as follows:

Subaccount	Inception Date
Vanguard® Balanced	December 23, 2019
Vanguard® Equity Income	December 23, 2019
Vanguard® Global Bond Index	December 23, 2019
Vanguard® Growth	December 23, 2019
Vanguard® High Yield Bond	December 23, 2019
Vanguard® Moderate Allocation	December 23, 2019
Vanguard® Money Market	December 23, 2019
Vanguard® Total International Stock Market Index	December 23, 2019
Vanguard® Total Stock Market Index	December 23, 2019
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
The following subaccount name changes were made effective during the fiscal year ended December 31, 2019:
Subaccount	Formerly
Franklin Allocation Class 4 Shares	Franklin Founding Funds Allocation Class 4 Shares
TA BlackRock iShares Edge 100 Service Class	TA BlackRock Equity Smart Beta 100 Service Class
TA BlackRock iShares Edge 40 Initial Class	TA BlackRock Smart Beta 40 Initial Class
TA BlackRock iShares Edge 40 Service Class	TA BlackRock Smart Beta 40 Service Class
TA BlackRock iShares Edge 50 Service Class	TA BlackRock Smart Beta 50 Service Class
TA BlackRock iShares Edge 75 Service Class	TA BlackRock Smart Beta 75 Service Class
During the current year the following subaccounts were liquidated and subsequently reinvested:
Reinvested Subaccount	Liquidated Subaccount
TA JPMorgan Asset Allocation - Moderate Service Class	TA Madison Balanced Allocation Service Class
TA JPMorgan Asset Allocation - Conservative Service Class	TA Madison Conservative Allocation Service Class
TA Morgan Stanley Capital Growth Initial Class	TA Jennison Growth Initial Class
TA Morgan Stanley Capital Growth Service Class	TA Jennison Growth Service Class
TA WMC US Growth Initial Class	TA Torray Concentrated Growth Initial Class
TA WMC US Growth Service Class	TA Torray Concentrated Growth Service Class

42

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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, 2019.

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, 2019.

43

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

3. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2019 were as follows:

Subaccount	Purchases		Sales
AB Balanced Wealth Strategy Class B Shares	$	31,952,148	$	21,559,345
AB Growth and Income Class B Shares		54,487,153		37,568,713
AB Large Cap Growth Class B Shares		4,065,747		5,453,813
American Funds - Asset Allocation Class 2 Shares		167,695,449		116,969,084
American Funds - Bond Class 2 Shares		64,918,041		44,989,178
American Funds - Growth Class 2 Shares		224,604,695		72,637,482
American Funds - Growth-Income Class 2 Shares		172,285,406		57,587,421
American Funds - International Class 2 Shares		65,921,186		39,510,665
BlackRock Basic Value V.I. Class I Shares		2,366,669		2,216,294
BlackRock Global Allocation V.I. Class I Shares		497,036		1,475,785
BlackRock High Yield V.I. Class I Shares		353,073		639,608
DFA VA Equity Allocation		100		100
DFA VA Global Bond		100		100
DFA VA Global Moderate Allocation		100		100
DFA VA International Small		101		101
DFA VA International Value		100		100
DFA VA Short-Term Fixed		100		100
DFA VA U.S. Large Value		100		100
DFA VA U.S. Targeted Value		100		100
Fidelity® VIP Balanced Service Class 2		90,971,644		61,251,483
Fidelity® VIP Contrafund® Initial Class		57,770		108,203
Fidelity® VIP Contrafund® Service Class 2		164,261,021		77,279,362
Fidelity® VIP Equity-Income Initial Class		3,544		1,820
Fidelity® VIP Equity-Income Service Class 2		3,735,121		6,150,000
Fidelity® VIP Growth Initial Class		1,276		1,109
Fidelity® VIP Growth Service Class 2		2,580,256		5,562,347
Fidelity® VIP Growth Opportunities Service Class 2		247,135		276,144
Fidelity® VIP Mid Cap Initial Class		14,407		47,488
Fidelity® VIP Mid Cap Service Class 2		82,666,387		45,394,008
Fidelity® VIP Value Strategies Initial Class		124,511		96,955
Fidelity® VIP Value Strategies Service Class 2		45,067,155		20,648,563
Franklin Allocation Class 4 Shares		7,615,325		14,874,029
Franklin Income Class 2 Shares		4,364,442		11,303,187
Franklin Mutual Shares Class 2 Shares		1,583,378		2,436,217
Franklin Templeton Foreign Class 2 Shares		683,072		3,984,103
Invesco V.I. American Franchise Series II Shares		971,309		1,134,124

44

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

3. Investments (continued)

Subaccount	Purchases		Sales
Janus Henderson - Enterprise Service Shares	$	1,580,593	$	3,636,331
Janus Henderson - Global Research Service Shares		1,882,660		4,066,076
Janus Henderson - Mid Cap Value Service Shares		287,667		206,920
MFS® New Discovery Service Class		8,444,348		7,541,866
MFS® Total Return Service Class		2,097,354		6,739,881
NVIT Emerging Markets Class D Shares		414		376
Rational Insider Buying VA		373,348		658,031
Rational Trend Aggregation VA		74,779		505,166
State Street Total Return V.I.S. Class 3 Shares		9,008,401		11,708,029
TA 60/40 Allocation Service Class		17,881,581		2,971,651
TA Aegon High Yield Bond Initial Class		10,903,449		11,002,442
TA Aegon High Yield Bond Service Class		36,550,773		28,625,785
TA Aegon U.S. Government Securities Initial Class		16,732,214		18,578,349
TA Aegon U.S. Government Securities Service Class		82,247,168		220,227,416
TA American Funds Managed Risk - Balanced Service Class		180,194,335		68,553,530
TA Barrow Hanley Dividend Focused Initial Class		56,858,257		43,679,567
TA Barrow Hanley Dividend Focused Service Class		48,736,957		29,069,500
TA BlackRock Global Allocation Service Class		82,228,633		174,021,908
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		50,977,089		22,259,589
TA BlackRock Global Allocation Managed Risk - Growth Service Class		15,842,543		23,109,666
TA BlackRock Global Real Estate Securities Initial Class		4,090,552		6,312,638
TA BlackRock Global Real Estate Securities Service Class		16,079,249		14,594,955
TA BlackRock Government Money Market Initial Class		38,441,068		42,457,624
TA BlackRock Government Money Market Service Class		330,065,214		321,064,236
TA BlackRock iShares Edge 100 Service Class		17,989,722		10,246,153
TA BlackRock iShares Edge 40 Initial Class		3,673,231		2,282,073
TA BlackRock iShares Edge 40 Service Class		63,881,547		45,415,231
TA BlackRock iShares Edge 50 Service Class		150,150,828		11,886,671
TA BlackRock iShares Edge 75 Service Class		55,918,187		12,364,292
TA BlackRock Tactical Allocation Service Class		104,235,044		195,148,621
TA Greystone International Growth Initial Class		18,249,334		10,653,941
TA Greystone International Growth Service Class		27,501,346		15,677,708
TA International Equity Index Service Class		27,139,318		9,711,291
TA Janus Balanced Service Class		138,259,211		107,131,758
TA Janus Mid-Cap Growth Initial Class		10,406,336		11,074,141
TA Janus Mid-Cap Growth Service Class		52,557,504		18,573,667

45

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

3. Investments (continued)

Subaccount	Purchases		Sales
TA JPMorgan Asset Allocation - Conservative Initial Class	$	26,121,650	$	26,177,799
TA JPMorgan Asset Allocation - Conservative Service Class		172,391,286		149,614,429
TA JPMorgan Asset Allocation - Growth Initial Class		38,180,370		33,122,248
TA JPMorgan Asset Allocation - Growth Service Class		51,864,454		31,616,020
TA JPMorgan Asset Allocation - Moderate Initial Class		38,786,895		51,034,046
TA JPMorgan Asset Allocation - Moderate Service Class		909,359,981		528,716,588
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		63,657,743		54,844,736
TA JPMorgan Asset Allocation - Moderate Growth Service Class		385,305,406		465,399,581
TA JPMorgan Core Bond Service Class		58,534,339		36,549,970
TA JPMorgan Enhanced Index Initial Class		26,286,717		18,961,883
TA JPMorgan Enhanced Index Service Class		27,535,645		14,279,141
TA JPMorgan International Moderate Growth Initial Class		11,660		1,177
TA JPMorgan International Moderate Growth Service Class		66,357,384		80,415,706
TA JPMorgan Mid Cap Value Service Class		56,987,525		31,403,137
TA JPMorgan Tactical Allocation Service Class		95,607,689		120,509,288
TA Legg Mason Dynamic Allocation - Balanced Service Class		67,128,769		116,668,661
TA Legg Mason Dynamic Allocation - Growth Service Class		29,838,948		59,441,150
TA Levin Large Cap Value Service Class		8,832,985		693,191
TA Madison Diversified Income Service Class		50,131,186		21,606,801
TA Managed Risk - Balanced ETF Service Class		339,163,975		609,975,662
TA Managed Risk - Conservative ETF Service Class		81,525,064		118,012,828
TA Managed Risk - Growth ETF Service Class		299,714,056		386,499,016
TA Market Participation Strategy Service Class		67,796,537		61,208,149
TA Morgan Stanley Capital Growth Initial Class		242,322,196		37,720,512
TA Morgan Stanley Capital Growth Service Class		268,192,152		36,730,866
TA Multi-Managed Balanced Initial Class		15,062,016		12,473,944
TA Multi-Managed Balanced Service Class		144,601,198		134,838,470
TA Multi-Manager Alternative Strategies Service Class		2,154,547		675,083
TA PIMCO Tactical - Balanced Service Class		12,205,271		77,106,805
TA PIMCO Tactical - Conservative Service Class		19,926,860		40,142,104
TA PIMCO Tactical - Growth Service Class		10,058,166		41,257,840
TA PIMCO Total Return Initial Class		21,302,255		25,493,843
TA PIMCO Total Return Service Class		79,420,730		116,381,179
TA PineBridge Inflation Opportunities Service Class		12,457,825		27,198,306
TA ProFunds UltraBear Service Class (OAM)		3,952,803		13,844,136
TA QS Investors Active Asset Allocation - Conservative Service Class		42,491,449		55,464,875

46

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

3. Investments (continued)

Subaccount	Purchases		Sales
TA QS Investors Active Asset Allocation - Moderate Service Class	$	146,029,159	$	173,256,705
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		54,570,443		86,365,703
TA Small/Mid Cap Value Initial Class		10,860,220		16,901,557
TA Small/Mid Cap Value Service Class		47,677,255		19,515,808
TA T. Rowe Price Small Cap Initial Class		20,376,325		20,301,436
TA T. Rowe Price Small Cap Service Class		99,452,191		37,138,651
TA TS&W International Equity Initial Class		7,475,980		10,583,392
TA TS&W International Equity Service Class		11,112,816		7,345,273
TA U.S. Equity Index Service Class		131,000,921		24,313,113
TA WMC US Growth Initial Class		180,239,270		49,644,906
TA WMC US Growth Service Class		99,173,936		26,470,061
Vanguard® - Capital Growth		100		100
Vanguard® - Conservative Allocation		100		100
Vanguard® - Diversified Value		100		100
Vanguard® Balanced		101		101
Vanguard® Equity Income		100		100
Vanguard® Equity Index		354,666		408,050
Vanguard® Global Bond Index		100		100
Vanguard® Growth		101		101
Vanguard® High Yield Bond		100		100
Vanguard® International		753,852		312,504
Vanguard® Mid-Cap Index		886,165		262,765
Vanguard® Moderate Allocation		100		100
Vanguard® Money Market		100		100
Vanguard® Real Estate Index		272,256		95,336
Vanguard® Short-Term Investment Grade		1,855,032		754,949
Vanguard® Total Bond Market Index		1,446,679		143,853
Vanguard® Total International Stock Market Index		101		101
Vanguard® Total Stock Market Index		100		100
Voya Global Perspectives Class S Shares		1,800		565
Voya Large Cap Value Class S Shares		102		38
Voya Strategic Allocation Conservative Class S Shares		-		-
Voya Strategic Allocation Moderate Class S Shares		-		-
Wanger International		91,620		34,704
Wanger USA		-		-

47

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, 2019								Year Ended December 31, 2018
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		2,959,076		(6,440,582	)		(3,481,506	)		1,523,685		(6,437,660	)		(4,913,975	)
AB Growth and Income Class B Shares		5,551,354		(10,807,465	)		(5,256,111	)		9,595,504		(15,344,653	)		(5,749,149	)
AB Large Cap Growth Class B Shares		57,187		(2,046,034	)		(1,988,847	)		138,842		(2,286,335	)		(2,147,493	)
American Funds - Asset Allocation Class 2 Shares		15,423,351		(33,800,670	)		(18,377,319	)		13,571,099		(46,829,771	)		(33,258,672	)
American Funds - Bond Class 2 Shares		11,266,535		(12,890,890	)		(1,624,355	)		8,426,991		(16,200,396	)		(7,773,405	)
American Funds - Growth Class 2 Shares		9,734,417		(11,227,793	)		(1,493,376	)		7,066,954		(12,783,085	)		(5,716,131	)
American Funds - Growth-Income Class 2 Shares		7,710,257		(8,182,891	)		(472,634	)		4,675,592		(8,885,565	)		(4,209,973	)
American Funds - International Class 2 Shares		6,507,223		(9,429,935	)		(2,922,712	)		9,557,859		(11,556,136	)		(1,998,277	)
BlackRock Basic Value V.I. Class I Shares		106,420		(670,597	)		(564,177	)		685,055		(1,248,500	)		(563,445	)
BlackRock Global Allocation V.I. Class I Shares		4,526		(569,915	)		(565,389	)		252,934		(1,092,678	)		(839,744	)
BlackRock High Yield V.I. Class I Shares		57,510		(224,475	)		(166,965	)		109,957		(364,534	)		(254,577	)
DFA VA Equity Allocation		-		-			-			-		-			-
DFA VA Global Bond		-		-			-			-		-			-
DFA VA Global Moderate Allocation		-		-			-			-		-			-
DFA VA International Small		-		-			-			-		-			-
DFA VA International Value		-		-			-			-		-			-
DFA VA Short-Term Fixed		-		-			-			-		-			-
DFA VA U.S. Large Value		-		-			-			-		-			-
DFA VA U.S. Targeted Value		-		-			-			-		-			-
Fidelity® VIP Balanced Service Class 2		9,152,604		(21,146,988	)		(11,994,384	)		12,989,014		(23,270,282	)		(10,281,268	)
Fidelity® VIP Contrafund® Initial Class		13,009		(41,036	)		(28,027	)		21		(7,630	)		(7,609	)
Fidelity® VIP Contrafund® Service Class 2		10,752,191		(17,951,593	)		(7,199,402	)		11,614,079		(29,537,801	)		(17,923,722	)
Fidelity® VIP Equity-Income Initial Class		-		(818	)		(818	)		-		(879	)		(879	)
Fidelity® VIP Equity-Income Service Class 2		165,667		(2,692,956	)		(2,527,289	)		352,664		(3,484,818	)		(3,132,154	)
Fidelity® VIP Growth Initial Class		-		(377	)		(377	)		-		(420	)		(420	)
Fidelity® VIP Growth Service Class 2		67,416		(2,053,022	)		(1,985,606	)		330,483		(3,073,544	)		(2,743,061	)
Fidelity® VIP Growth Opportunities Service Class 2		5,581		(72,763	)		(67,182	)		55,567		(332,995	)		(277,428	)

48

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
Fidelity® VIP Mid Cap Initial Class		1,164		(21,936	)		(20,772	)		123		(3,264	)		(3,141	)
Fidelity® VIP Mid Cap Service Class 2		4,586,758		(10,366,617	)		(5,779,859	)		5,940,899		(15,765,820	)		(9,824,921	)
Fidelity® VIP Value Strategies Initial Class		49,452		(48,955	)		497			50,773		(56,594	)		(5,821	)
Fidelity® VIP Value Strategies Service Class 2		4,870,722		(6,013,131	)		(1,142,409	)		6,742,126		(9,055,247	)		(2,313,121	)
Franklin Allocation Class 4 Shares		120,905		(6,642,960	)		(6,522,055	)		109,929		(9,949,405	)		(9,839,476	)
Franklin Income Class 2 Shares		96,229		(6,874,721	)		(6,778,492	)		413,996		(8,916,743	)		(8,502,747	)
Franklin Mutual Shares Class 2 Shares		25,787		(1,579,670	)		(1,553,883	)		36,490		(1,629,644	)		(1,593,154	)
Franklin Templeton Foreign Class 2 Shares		53,187		(3,702,269	)		(3,649,082	)		364,020		(4,737,630	)		(4,373,610	)
Invesco V.I. American Franchise Series II Shares		10,382		(498,444	)		(488,062	)		42,437		(615,822	)		(573,385	)
Janus Henderson - Enterprise Service Shares		54,574		(1,061,913	)		(1,007,339	)		151,583		(1,239,729	)		(1,088,146	)
Janus Henderson - Global Research Service Shares		103,747		(2,487,736	)		(2,383,989	)		258,591		(3,326,563	)		(3,067,972	)
Janus Henderson - Mid Cap Value Service Shares		9,383		(66,963	)		(57,580	)		50,595		(120,053	)		(69,458	)
MFS® New Discovery Service Class		9,963		(2,196,116	)		(2,186,153	)		235,719		(2,656,779	)		(2,421,060	)
MFS® Total Return Service Class		55,332		(3,162,264	)		(3,106,932	)		332,481		(3,975,697	)		(3,643,216	)
NVIT Emerging Markets Class D Shares		-		(23	)		(23	)		-		(21	)		(21	)
Rational Insider Buying VA		25,246		(357,937	)		(332,691	)		4,310		(248,152	)		(243,842	)
Rational Trend Aggregation VA		34,940		(361,051	)		(326,111	)		10,794		(236,985	)		(226,191	)
State Street Total Return V.I.S. Class 3 Shares		1,814,251		(5,101,432	)		(3,287,181	)		1,312,073		(6,050,485	)		(4,738,412	)
TA 60/40 Allocation Service Class		2,877,786		(560,589	)		2,317,197			1,559,228		(53,047	)		1,506,181
TA Aegon High Yield Bond Initial Class		2,775,485		(4,292,963	)		(1,517,478	)		2,752,719		(8,261,448	)		(5,508,729	)
TA Aegon High Yield Bond Service Class		5,006,264		(8,929,785	)		(3,923,521	)		6,331,640		(11,686,304	)		(5,354,664	)
TA Aegon U.S. Government Securities Initial Class		9,091,779		(10,638,198	)		(1,546,419	)		8,207,217		(8,956,243	)		(749,026	)
TA Aegon U.S. Government Securities Service Class		17,722,565		(51,730,315	)		(34,007,750	)		41,550,404		(26,832,098	)		14,718,306
TA American Funds Managed Risk - Balanced Service Class		13,541,776		(5,548,248	)		7,993,528			17,252,554		(6,072,206	)		11,180,348
TA Barrow Hanley Dividend Focused Initial Class		446,142		(15,372,107	)		(14,925,965	)		6,945,777		(28,480,423	)		(21,534,646	)
TA Barrow Hanley Dividend Focused Service Class		2,431,483		(8,116,194	)		(5,684,711	)		2,153,579		(11,318,867	)		(9,165,288	)
TA BlackRock Global Allocation Service Class		5,371,319		(70,755,429	)		(65,384,110	)		7,432,004		(91,646,552	)		(84,214,548	)

49

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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 Global Allocation Managed Risk - Balanced Service Class		4,450,228		(2,037,017	)		2,413,211			6,005,589		(2,185,490	)		3,820,099
TA BlackRock Global Allocation Managed Risk - Growth Service Class		992,981		(2,085,690	)		(1,092,709	)		2,277,060		(2,855,018	)		(577,958	)
TA BlackRock Global Real Estate Securities Initial Class		1,460,964		(2,144,808	)		(683,844	)		1,751,297		(3,650,757	)		(1,899,460	)
TA BlackRock Global Real Estate Securities Service Class		2,007,415		(4,838,500	)		(2,831,085	)		1,010,839		(6,083,144	)		(5,072,305	)
TA BlackRock Government Money Market Initial Class		34,812,338		(39,796,431	)		(4,984,093	)		48,955,024		(42,840,185	)		6,114,839
TA BlackRock Government Money Market Service Class		124,881,214		(139,462,284	)		(14,581,070	)		141,518,817		(138,789,554	)		2,729,263
TA BlackRock iShares Edge 100 Service Class		1,189,812		(734,756	)		455,056			786,162		(990,943	)		(204,781	)
TA BlackRock iShares Edge 40 Initial Class		635,383		(1,185,264	)		(549,881	)		1,080,267		(2,176,973	)		(1,096,706	)
TA BlackRock iShares Edge 40 Service Class		3,930,888		(20,689,387	)		(16,758,499	)		2,426,732		(23,652,010	)		(21,225,278	)
TA BlackRock iShares Edge 50 Service Class		12,473,514		(923,467	)		11,550,047			8,030,843		(1,102,263	)		6,928,580
TA BlackRock iShares Edge 75 Service Class		4,377,493		(917,116	)		3,460,377			3,715,143		(614,179	)		3,100,964
TA BlackRock Tactical Allocation Service Class		6,996,787		(65,363,645	)		(58,366,858	)		9,017,567		(77,470,941	)		(68,453,374	)
TA Greystone International Growth Initial Class		2,839,751		(5,777,099	)		(2,937,348	)		8,368,569		(8,423,131	)		(54,562	)
TA Greystone International Growth Service Class		1,594,604		(4,521,677	)		(2,927,073	)		2,002,016		(8,795,897	)		(6,793,881	)
TA International Equity Index Service Class		2,575,195		(912,819	)		1,662,376			1,265,869		(156,076	)		1,109,793
TA Janus Balanced Service Class		16,170,243		(26,515,812	)		(10,345,569	)		28,380,728		(27,666,375	)		714,353
TA Janus Mid-Cap Growth Initial Class		3,055,666		(4,906,212	)		(1,850,546	)		5,436,682		(7,947,017	)		(2,510,335	)
TA Janus Mid-Cap Growth Service Class		3,776,702		(3,829,576	)		(52,874	)		3,407,078		(4,261,244	)		(854,166	)
TA JPMorgan Asset Allocation - Conservative Initial Class		9,375,062		(13,551,832	)		(4,176,770	)		13,288,452		(21,972,962	)		(8,684,510	)
TA JPMorgan Asset Allocation - Conservative Service Class		27,499,368		(61,255,789	)		(33,756,421	)		13,255,351		(72,889,257	)		(59,633,906	)
TA JPMorgan Asset Allocation - Growth Initial Class		4,686,071		(13,777,368	)		(9,091,297	)		11,030,046		(23,778,026	)		(12,747,980	)
TA JPMorgan Asset Allocation - Growth Service Class		4,116,256		(9,940,906	)		(5,824,650	)		3,726,737		(13,398,852	)		(9,672,115	)
TA JPMorgan Asset Allocation - Moderate Initial Class		5,523,501		(23,433,552	)		(17,910,051	)		14,962,063		(31,379,825	)		(16,417,762	)
TA JPMorgan Asset Allocation - Moderate Service Class		61,615,370		(197,714,701	)		(136,099,331	)		54,819,320		(228,773,202	)		(173,953,882	)
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		6,727,727		(23,315,094	)		(16,587,367	)		14,295,189		(30,175,990	)		(15,880,801	)
TA JPMorgan Asset Allocation - Moderate Growth Service Class		8,734,830		(169,977,528	)		(161,242,698	)		21,958,093		(180,994,364	)		(159,036,271	)
TA JPMorgan Core Bond Service Class		11,518,710		(13,691,980	)		(2,173,270	)		7,316,173		(14,093,712	)		(6,777,539	)

50

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA JPMorgan Enhanced Index Initial Class		3,763,394		(6,254,819	)		(2,491,425	)		7,004,207		(9,654,472	)		(2,650,265	)
TA JPMorgan Enhanced Index Service Class		1,656,099		(2,746,771	)		(1,090,672	)		1,349,663		(3,661,708	)		(2,312,045	)
TA JPMorgan International Moderate Growth Initial Class		1,372		(583	)		789			1,110		(556	)		554
TA JPMorgan International Moderate Growth Service Class		3,854,899		(41,005,935	)		(37,151,036	)		12,495,447		(45,652,434	)		(33,156,987	)
TA JPMorgan Mid Cap Value Service Class		4,076,947		(6,772,416	)		(2,695,469	)		4,061,822		(9,956,648	)		(5,894,826	)
TA JPMorgan Tactical Allocation Service Class		7,255,078		(37,268,135	)		(30,013,057	)		5,691,744		(51,865,484	)		(46,173,740	)
TA Legg Mason Dynamic Allocation - Balanced Service Class		4,351,016		(26,879,312	)		(22,528,296	)		4,698,058		(34,119,438	)		(29,421,380	)
TA Legg Mason Dynamic Allocation - Growth Service Class		2,183,486		(14,448,434	)		(12,264,948	)		6,477,706		(18,452,494	)		(11,974,788	)
TA Levin Large Cap Value Service Class		1,446,415		(301,246	)		1,145,169			379,919		(56,530	)		323,389
TA Madison Diversified Income Service Class		9,674,645		(9,018,765	)		655,880			3,604,623		(6,721,983	)		(3,117,360	)
TA Managed Risk - Balanced ETF Service Class		13,516,679		(160,478,245	)		(146,961,566	)		23,961,838		(188,072,355	)		(164,110,517	)
TA Managed Risk - Conservative ETF Service Class		7,741,347		(42,636,379	)		(34,895,032	)		12,593,909		(47,438,094	)		(34,844,185	)
TA Managed Risk - Growth ETF Service Class		9,279,418		(131,613,254	)		(122,333,836	)		15,365,231		(158,078,377	)		(142,713,146	)
TA Market Participation Strategy Service Class		1,450,212		(13,273,808	)		(11,823,596	)		7,901,328		(14,376,033	)		(6,474,705	)
TA Morgan Stanley Capital Growth Initial Class		62,202,553		(9,266,560	)		52,935,993			6,891,310		(6,340,702	)		550,608
TA Morgan Stanley Capital Growth Service Class		21,936,652		(4,946,429	)		16,990,223			4,449,254		(4,357,928	)		91,326
TA Multi-Managed Balanced Initial Class		3,016,812		(4,322,359	)		(1,305,547	)		4,368,453		(5,441,241	)		(1,072,788	)
TA Multi-Managed Balanced Service Class		7,774,819		(27,365,259	)		(19,590,440	)		7,920,741		(40,603,827	)		(32,683,086	)
TA Multi-Manager Alternative Strategies Service Class		213,154		(64,411	)		148,743			196,375		(68,671	)		127,704
TA PIMCO Tactical - Balanced Service Class		4,001,397		(23,032,095	)		(19,030,698	)		4,705,473		(25,247,915	)		(20,542,442	)
TA PIMCO Tactical - Conservative Service Class		6,162,221		(13,041,798	)		(6,879,577	)		5,725,827		(14,844,962	)		(9,119,135	)
TA PIMCO Tactical - Growth Service Class		2,778,267		(12,324,844	)		(9,546,577	)		3,306,016		(15,327,665	)		(12,021,649	)
TA PIMCO Total Return Initial Class		10,834,099		(13,912,677	)		(3,078,578	)		13,017,182		(20,926,712	)		(7,909,530	)
TA PIMCO Total Return Service Class		11,475,171		(53,261,535	)		(41,786,364	)		12,286,984		(61,609,367	)		(49,322,383	)
TA PineBridge Inflation Opportunities Service Class		2,081,570		(13,686,945	)		(11,605,375	)		4,631,467		(15,046,728	)		(10,415,261	)
TA ProFunds UltraBear Service Class (OAM)		127,036,956		(423,206,798	)		(296,169,842	)		671,427,493		(172,407,006	)		499,020,487
TA QS Investors Active Asset Allocation - Conservative Service Class		2,176,086		(22,407,879	)		(20,231,793	)		3,269,843		(28,804,012	)		(25,534,169	)

51

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA QS Investors Active Asset Allocation - Moderate Service Class		4,287,547		(52,803,624	)		(48,516,077	)		9,738,675		(60,541,321	)		(50,802,646	)
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		3,302,463		(30,669,669	)		(27,367,206	)		7,075,120		(36,789,361	)		(29,714,241	)
TA Small/Mid Cap Value Initial Class		256,137		(2,746,483	)		(2,490,346	)		1,249,255		(3,474,380	)		(2,225,125	)
TA Small/Mid Cap Value Service Class		3,137,027		(4,908,697	)		(1,771,670	)		1,550,851		(6,540,776	)		(4,989,925	)
TA T. Rowe Price Small Cap Initial Class		2,221,290		(5,983,450	)		(3,762,160	)		5,300,315		(7,321,903	)		(2,021,588	)
TA T. Rowe Price Small Cap Service Class		4,475,218		(5,518,113	)		(1,042,895	)		2,886,418		(7,336,983	)		(4,450,565	)
TA TS&W International Equity Initial Class		2,815,743		(5,303,945	)		(2,488,202	)		8,543,976		(6,780,649	)		1,763,327
TA TS&W International Equity Service Class		1,263,310		(2,579,274	)		(1,315,964	)		1,200,237		(2,728,634	)		(1,528,397	)
TA U.S. Equity Index Service Class		10,608,519		(1,912,189	)		8,696,330			3,233,373		(429,665	)		2,803,708
TA WMC US Growth Initial Class		61,933,873		(18,628,698	)		43,305,175			13,389,315		(27,098,607	)		(13,709,292	)
TA WMC US Growth Service Class		10,259,246		(5,227,520	)		5,031,726			1,721,219		(5,631,616	)		(3,910,397	)
Vanguard® - Capital Growth		-		-			-			-		-			-
Vanguard® - Conservative Allocation		-		-			-			-		-			-
Vanguard® - Diversified Value		-		-			-			-		-			-
Vanguard® Balanced		-		-			-			-		-			-
Vanguard® Equity Income		-		-			-			-		-			-
Vanguard® Equity Index		63,628		(141,356	)		(77,728	)		486,258		(116,070	)		370,188
Vanguard® Global Bond Index		-		-			-			-		-			-
Vanguard® Growth		-		-			-			-		-			-
Vanguard® High Yield Bond		-		-			-			-		-			-
Vanguard® International		67,867		(64,938	)		2,929			176,491		(376,350	)		(199,859	)
Vanguard® Mid-Cap Index		40,875		(28,213	)		12,662			39,172		(96,381	)		(57,209	)
Vanguard® Moderate Allocation		-		-			-			-		-			-
Vanguard® Money Market		-		-			-			-		-			-
Vanguard® Real Estate Index		54,861		(33,936	)		20,925			10,232		(16,395	)		(6,163	)
Vanguard® Short-Term Investment Grade		398,473		(392,730	)		5,743			43,180		(92,627	)		(49,447	)

52

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
Vanguard® Total Bond Market Index		209,472		(18,717	)		190,755			37,172		(80,312	)		(43,140	)
Vanguard® Total International Stock Market Index		-		-			-			-		-			-
Vanguard® Total Stock Market Index		-		-			-			-		-			-
Voya Global Perspectives Class S Shares		21		(27	)		(6	)		129		(1	)		128
Voya Large Cap Value Class S Shares		-		(2	)		(2	)		2		(1	)		1
Voya Strategic Allocation Conservative Class S Shares		-		-			-			-		-			-
Voya Strategic Allocation Moderate Class S Shares		-		-			-			-		-			-
Wanger International		5,559		(18,149	)		(12,590	)		3,274		(40,859	)		(37,585	)
Wanger USA		-		-			-			-		-			-

53

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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	$	18,495,036	$	(20,198,976	)	$	(1,703,940	)	$	10,528,416	$	(17,828,775	)	$	(7,300,359	)
AB Growth and Income Class B Shares		27,237,830		(34,791,818	)		(7,553,988	)		28,852,871		(46,781,780	)		(17,928,909	)
AB Large Cap Growth Class B Shares		139,023		(5,003,502	)		(4,864,479	)		329,434		(5,407,326	)		(5,077,892	)
American Funds - Asset Allocation Class 2 Shares		117,675,182		(107,698,788	)		9,976,394			97,895,872		(143,472,008	)		(45,576,136	)
American Funds - Bond Class 2 Shares		60,356,238		(42,660,438	)		17,695,800			41,396,975		(56,694,257	)		(15,297,282	)
American Funds - Growth Class 2 Shares		168,037,679		(68,197,329	)		99,840,350			91,048,392		(82,011,310	)		9,037,082
American Funds - Growth-Income Class 2 Shares		118,068,090		(53,467,557	)		64,600,533			61,056,938		(56,671,161	)		4,385,777
American Funds - International Class 2 Shares		58,814,627		(37,639,733	)		21,174,894			64,333,811		(38,540,051	)		25,793,760
BlackRock Basic Value V.I. Class I Shares		303,180		(1,936,483	)		(1,633,303	)		1,790,580		(3,854,477	)		(2,063,897	)
BlackRock Global Allocation V.I. Class I Shares		12,776		(1,310,869	)		(1,298,093	)		677,567		(2,355,941	)		(1,678,374	)
BlackRock High Yield V.I. Class I Shares		154,156		(586,332	)		(432,176	)		265,390		(911,081	)		(645,691	)
DFA VA Equity Allocation		-		-			-			-		-			-
DFA VA Global Bond		-		-			-			-		-			-
DFA VA Global Moderate Allocation		-		-			-			-		-			-
DFA VA International Small		-		-			-			-		-			-
DFA VA International Value		-		-			-			-		-			-
DFA VA Short-Term Fixed		-		-			-			-		-			-
DFA VA U.S. Large Value		-		-			-			-		-			-
DFA VA U.S. Targeted Value		-		-			-			-		-			-
Fidelity® VIP Balanced Service Class 2		66,550,149		(56,834,830	)		9,715,319			60,541,254		(54,617,405	)		5,923,849
Fidelity® VIP Contrafund® Initial Class		28,594		(106,631	)		(78,037	)		277		(20,685	)		(20,408	)
Fidelity® VIP Contrafund® Service Class 2		100,206,606		(71,415,665	)		28,790,941			61,504,641		(103,056,512	)		(41,551,871	)
Fidelity® VIP Equity-Income Initial Class		-		(1,514	)		(1,514	)		-		(1,576	)		(1,576	)
Fidelity® VIP Equity-Income Service Class 2		307,577		(5,545,597	)		(5,238,020	)		710,627		(6,921,780	)		(6,211,153	)
Fidelity® VIP Growth Initial Class		-		(946	)		(946	)		-		(992	)		(992	)
Fidelity® VIP Growth Service Class 2		182,185		(5,003,831	)		(4,821,646	)		779,126		(6,866,136	)		(6,087,010	)
Fidelity® VIP Growth Opportunities Service Class 2		17,551		(233,923	)		(216,372	)		186,612		(836,051	)		(649,439	)

54

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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)
Fidelity® VIP Mid Cap Initial Class	$	3,974	$	(47,116	)	$	(43,142	)	$	1,701	$	(12,984	)	$	(11,283	)
Fidelity® VIP Mid Cap Service Class 2		45,923,986		(41,993,624	)		3,930,362			36,147,721		(66,250,952	)		(30,103,231	)
Fidelity® VIP Value Strategies Initial Class		92,424		(95,058	)		(2,634	)		91,176		(101,806	)		(10,630	)
Fidelity® VIP Value Strategies Service Class 2		30,998,254		(19,049,421	)		11,948,833			22,162,373		(27,449,636	)		(5,287,263	)
Franklin Allocation Class 4 Shares		247,538		(13,626,476	)		(13,378,938	)		224,968		(20,529,629	)		(20,304,661	)
Franklin Income Class 2 Shares		146,509		(10,419,469	)		(10,272,960	)		589,292		(13,009,297	)		(12,420,005	)
Franklin Mutual Shares Class 2 Shares		36,389		(2,234,413	)		(2,198,024	)		61,058		(2,261,015	)		(2,199,957	)
Franklin Templeton Foreign Class 2 Shares		52,169		(3,639,114	)		(3,586,945	)		424,348		(5,033,098	)		(4,608,750	)
Invesco V.I. American Franchise Series II Shares		20,588		(1,035,926	)		(1,015,338	)		83,045		(1,200,494	)		(1,117,449	)
Janus Henderson - Enterprise Service Shares		184,775		(3,303,334	)		(3,118,559	)		470,269		(3,038,447	)		(2,568,178	)
Janus Henderson - Global Research Service Shares		160,341		(3,700,123	)		(3,539,782	)		401,892		(4,587,391	)		(4,185,499	)
Janus Henderson - Mid Cap Value Service Shares		24,027		(164,418	)		(140,391	)		101,993		(298,028	)		(196,035	)
MFS® New Discovery Service Class		31,193		(6,894,173	)		(6,862,980	)		703,286		(7,376,837	)		(6,673,551	)
MFS® Total Return Service Class		107,615		(6,123,424	)		(6,015,809	)		603,679		(7,420,702	)		(6,817,023	)
NVIT Emerging Markets Class D Shares		-		(282	)		(282	)		-		(285	)		(285	)
Rational Insider Buying VA		44,759		(633,417	)		(588,658	)		7,491		(443,470	)		(435,979	)
Rational Trend Aggregation VA		47,964		(490,157	)		(442,193	)		14,688		(319,699	)		(305,011	)
State Street Total Return V.I.S. Class 3 Shares		8,008,791		(10,962,674	)		(2,953,883	)		6,909,713		(11,280,379	)		(4,370,666	)
TA 60/40 Allocation Service Class		17,861,669		(2,803,892	)		15,057,777			8,347,672		(389,845	)		7,957,827
TA Aegon High Yield Bond Initial Class		6,484,677		(10,030,574	)		(3,545,897	)		6,089,778		(18,777,424	)		(12,687,646	)
TA Aegon High Yield Bond Service Class		28,256,301		(27,073,129	)		1,183,172			24,778,333		(38,894,075	)		(14,115,742	)
TA Aegon U.S. Government Securities Initial Class		15,537,270		(17,710,679	)		(2,173,409	)		11,437,735		(13,448,799	)		(2,011,064	)
TA Aegon U.S. Government Securities Service Class		78,903,574		(217,458,822	)		(138,555,248	)		195,994,882		(74,926,949	)		121,067,933
TA American Funds Managed Risk - Balanced Service Class		155,708,206		(62,821,545	)		92,886,661			193,622,020		(67,582,412	)		126,039,608
TA Barrow Hanley Dividend Focused Initial Class		1,117,365		(39,009,870	)		(37,892,505	)		16,572,835		(72,943,748	)		(56,370,913	)
TA Barrow Hanley Dividend Focused Service Class		22,204,280		(27,340,076	)		(5,135,796	)		16,309,883		(39,989,356	)		(23,679,473	)
TA BlackRock Global Allocation Service Class		27,173,604		(160,247,378	)		(133,073,774	)		37,386,024		(196,057,239	)		(158,671,215	)

55

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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 Global Allocation Managed Risk - Balanced Service Class	$	45,020,312	$		(20,424,585)	$	24,595,727		$	61,084,279	$	(21,894,213	)	$	39,190,066
TA BlackRock Global Allocation Managed Risk - Growth Service Class		10,005,044		(20,987,910	)		(10,982,866	)		23,620,686		(29,040,063	)		(5,419,377	)
TA BlackRock Global Real Estate Securities Initial Class		3,773,482		(5,749,723	)		(1,976,241	)		4,119,396		(8,999,496	)		(4,880,100	)
TA BlackRock Global Real Estate Securities Service Class		15,864,348		(13,743,361	)		2,120,987			5,223,424		(15,184,072	)		(9,960,648	)
TA BlackRock Government Money Market Initial Class		36,942,078		(41,278,658	)		(4,336,580	)		49,426,332		(46,071,504	)		3,354,828
TA BlackRock Government Money Market Service Class		325,515,918		(317,729,106	)		7,786,812			327,154,039		(282,214,765	)		44,939,274
TA BlackRock iShares Edge 100 Service Class		16,228,540		(9,856,901	)		6,371,639			10,126,502		(12,663,492	)		(2,536,990	)
TA BlackRock iShares Edge 40 Initial Class		976,405		(2,033,653	)		(1,057,248	)		1,685,158		(3,712,139	)		(2,026,981	)
TA BlackRock iShares Edge 40 Service Class		20,748,200		(41,893,248	)		(21,145,048	)		14,726,471		(44,158,426	)		(29,431,955	)
TA BlackRock iShares Edge 50 Service Class		149,360,955		(10,911,447	)		138,449,508			90,642,563		(12,372,331	)		78,270,232
TA BlackRock iShares Edge 75 Service Class		54,977,244		(11,531,838	)		43,445,406			44,905,465		(7,268,671	)		37,636,794
TA BlackRock Tactical Allocation Service Class		19,692,693		(178,833,346	)		(159,140,653	)		30,957,682		(204,954,032	)		(173,996,350	)
TA Greystone International Growth Initial Class		4,533,599		(9,704,270	)		(5,170,671	)		14,150,131		(13,418,140	)		731,991
TA Greystone International Growth Service Class		10,588,816		(14,706,955	)		(4,118,139	)		13,200,659		(24,001,176	)		(10,800,517	)
TA International Equity Index Service Class		26,945,213		(9,514,103	)		17,431,110			13,671,483		(1,554,176	)		12,117,307
TA Janus Balanced Service Class		86,923,063		(97,714,048	)		(10,790,985	)		113,404,035		(95,755,729	)		17,648,306
TA Janus Mid-Cap Growth Initial Class		6,128,410		(9,980,545	)		(3,852,135	)		10,494,234		(14,740,760	)		(4,246,526	)
TA Janus Mid-Cap Growth Service Class		46,310,712		(17,545,875	)		28,764,837			22,352,176		(16,278,807	)		6,073,369
TA JPMorgan Asset Allocation - Conservative Initial Class		16,521,273		(23,924,610	)		(7,403,337	)		22,711,065		(38,777,003	)		(16,065,938	)
TA JPMorgan Asset Allocation - Conservative Service Class		117,426,583		(138,518,731	)		(21,092,148	)		57,882,553		(152,148,577	)		(94,266,024	)
TA JPMorgan Asset Allocation - Growth Initial Class		9,931,272		(29,355,723	)		(19,424,451	)		24,276,165		(51,383,378	)		(27,107,213	)
TA JPMorgan Asset Allocation - Growth Service Class		30,431,694		(29,335,594	)		1,096,100			18,893,652		(36,235,267	)		(17,341,615	)
TA JPMorgan Asset Allocation - Moderate Initial Class		10,429,790		(45,694,714	)		(35,264,924	)		28,966,094		(59,959,335	)		(30,993,241	)
TA JPMorgan Asset Allocation - Moderate Service Class		524,626,480		(481,341,842	)		43,284,638			538,331,283		(524,114,027	)		14,217,256
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		14,168,632		(48,088,456	)		(33,919,824	)		29,168,116		(62,370,283	)		(33,202,167	)

56

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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 Asset Allocation - Moderate Growth Service Class	$	53,722,050	$	(423,159,781	)	$	(369,437,731	)	$	140,818,240	$	(447,821,577	)	$	(307,003,337	)
TA JPMorgan Core Bond Service Class		53,927,843		(34,566,172	)		19,361,671			33,770,866		(33,195,288	)		575,578
TA JPMorgan Enhanced Index Initial Class		10,513,423		(17,270,739	)		(6,757,316	)		17,725,180		(24,949,090	)		(7,223,910	)
TA JPMorgan Enhanced Index Service Class		18,868,754		(13,563,406	)		5,305,348			11,923,720		(17,471,118	)		(5,547,398	)
TA JPMorgan International Moderate Growth Initial Class		1,858		(765	)		1,093			1,522		(762	)		760
TA JPMorgan International Moderate Growth Service Class		11,967,799		(73,638,183	)		(61,670,384	)		44,322,654		(82,866,782	)		(38,544,128	)
TA JPMorgan Mid Cap Value Service Class		35,129,532		(29,309,041	)		5,820,491			24,992,139		(43,258,742	)		(18,266,603	)
TA JPMorgan Tactical Allocation Service Class		59,952,197		(109,708,301	)		(49,756,104	)		50,537,559		(135,165,480	)		(84,627,921	)
TA Legg Mason Dynamic Allocation - Balanced Service Class		26,394,536		(105,002,007	)		(78,607,471	)		25,932,187		(124,411,453	)		(98,479,266	)
TA Legg Mason Dynamic Allocation - Growth Service Class		9,189,757		(54,075,396	)		(44,885,639	)		20,075,603		(64,699,858	)		(44,624,255	)
TA Levin Large Cap Value Service Class		8,817,694		(635,712	)		8,181,982			2,642,746		(333,324	)		2,309,422
TA Madison Diversified Income Service Class		43,739,712		(19,759,389	)		23,980,323			24,927,200		(16,831,628	)		8,095,572
TA Managed Risk - Balanced ETF Service Class		96,933,586		(549,375,722	)		(452,442,136	)		130,035,759		(553,917,033	)		(423,881,274	)
TA Managed Risk - Conservative ETF Service Class		35,955,216		(110,395,523	)		(74,440,307	)		50,778,006		(115,843,179	)		(65,065,173	)
TA Managed Risk - Growth ETF Service Class		46,788,926		(357,001,014	)		(310,212,088	)		63,826,107		(400,522,021	)		(336,695,914	)
TA Market Participation Strategy Service Class		6,358,630		(56,172,771	)		(49,814,141	)		21,622,306		(58,154,726	)		(36,532,420	)
TA Morgan Stanley Capital Growth Initial Class		230,022,471		(35,150,509	)		194,871,962			24,106,297		(22,175,752	)		1,930,545
TA Morgan Stanley Capital Growth Service Class		254,675,647		(35,314,802	)		219,360,845			45,375,591		(31,286,067	)		14,089,524
TA Multi-Managed Balanced Initial Class		7,956,194		(11,233,851	)		(3,277,657	)		10,398,376		(13,506,918	)		(3,108,542	)
TA Multi-Managed Balanced Service Class		52,458,662		(121,492,313	)		(69,033,651	)		54,954,937		(164,631,639	)		(109,676,702	)
TA Multi-Manager Alternative Strategies Service Class		2,137,933		(643,709	)		1,494,224			1,966,039		(679,114	)		1,286,925
TA PIMCO Tactical - Balanced Service Class		11,873,957		(70,377,951	)		(58,503,994	)		11,922,315		(79,247,563	)		(67,325,248	)
TA PIMCO Tactical - Conservative Service Class		20,167,516		(37,234,436	)		(17,066,920	)		17,788,673		(46,044,021	)		(28,255,348	)
TA PIMCO Tactical - Growth Service Class		10,596,569		(37,234,519	)		(26,637,950	)		12,814,094		(44,103,541	)		(31,289,447	)
TA PIMCO Total Return Initial Class		17,552,882		(23,335,974	)		(5,783,092	)		19,791,265		(32,821,077	)		(13,029,812	)
TA PIMCO Total Return Service Class		65,032,013		(108,556,471	)		(43,524,458	)		53,033,488		(119,716,327	)		(66,682,839	)

57

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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 PineBridge Inflation Opportunities Service Class	$	9,312,653	$	(25,462,606	)	$	(16,149,953	)	$	14,831,713	$	(29,362,101	)	$	(14,530,388	)
TA ProFunds UltraBear Service Class (OAM)		4,004,863		(13,607,982	)		(9,603,119	)		26,986,533		(6,539,644	)		20,446,889
TA QS Investors Active Asset Allocation - Conservative Service Class		10,386,947		(51,395,738	)		(41,008,791	)		12,448,724		(61,843,804	)		(49,395,080	)
TA QS Investors Active Asset Allocation - Moderate Service Class		31,854,197		(157,765,584	)		(125,911,387	)		67,067,063		(171,513,291	)		(104,446,228	)
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		11,549,965		(80,049,370	)		(68,499,405	)		25,265,880		(91,862,638	)		(66,596,758	)
TA Small/Mid Cap Value Initial Class		1,165,147		(15,293,646	)		(14,128,499	)		5,918,923		(20,739,224	)		(14,820,301	)
TA Small/Mid Cap Value Service Class		36,945,752		(18,413,425	)		18,532,327			15,694,097		(24,035,571	)		(8,341,474	)
TA T. Rowe Price Small Cap Initial Class		7,198,698		(18,637,794	)		(11,439,096	)		17,150,745		(22,325,438	)		(5,174,693	)
TA T. Rowe Price Small Cap Service Class		70,601,308		(34,907,777	)		35,693,531			33,503,886		(44,505,901	)		(11,002,015	)
TA TS&W International Equity Initial Class		5,343,959		(9,623,990	)		(4,280,031	)		16,098,869		(13,028,471	)		3,070,398
TA TS&W International Equity Service Class		10,139,801		(6,945,097	)		3,194,704			6,837,113		(7,039,421	)		(202,308	)
TA U.S. Equity Index Service Class		131,202,601		(23,636,605	)		107,565,996			37,075,308		(4,824,519	)		32,250,789
TA WMC US Growth Initial Class		156,017,750		(45,246,803	)		110,770,947			33,935,385		(59,913,199	)		(25,977,814	)
TA WMC US Growth Service Class		87,071,310		(25,071,486	)		61,999,824			16,520,794		(25,847,178	)		(9,326,384	)
Vanguard® - Capital Growth		-		-			-			-		-			-
Vanguard® - Conservative Allocation		-		-			-			-		-			-
Vanguard® - Diversified Value		-		-			-			-		-			-
Vanguard® Balanced		-		-			-			-		-			-
Vanguard® Equity Income		-		-			-			-		-			-
Vanguard® Equity Index		149,317		(369,214	)		(219,897	)		1,048,327		(507,557	)		540,770
Vanguard® Global Bond Index		-		-			-			-		-			-
Vanguard® Growth		-		-			-			-		-			-
Vanguard® High Yield Bond		-		-			-			-		-			-
Vanguard® International		658,728		(295,272	)		363,456			521,283		(717,139	)		(195,856	)
Vanguard® Mid-Cap Index		734,561		(247,424	)		487,137			387,983		(276,491	)		111,492

58

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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)
Vanguard® Moderate Allocation	$	-	$	-		$	-		$	-	$	-		$	-
Vanguard® Money Market		-		-			-			-		-			-
Vanguard® Real Estate Index		232,059		(91,024	)		141,035			63,092		(40,179	)		22,913
Vanguard® Short-Term Investment Grade		1,767,559		(730,183	)		1,037,376			310,589		(253,550	)		57,039
Vanguard® Total Bond Market Index		1,383,198		(122,794	)		1,260,404			318,064		(202,789	)		115,275
Vanguard® Total International Stock Market Index		-		-			-			-		-			-
Vanguard® Total Stock Market Index		-		-			-			-		-			-
Voya Global Perspectives Class S Shares		238		(299	)		(61	)		1,375		(8	)		1,367
Voya Large Cap Value Class S Shares		-		(23	)		(23	)		25		(11	)		14
Voya Strategic Allocation Conservative Class S Shares		-		-			-			-		-			-
Voya Strategic Allocation Moderate Class S Shares		-		-			-			-		-			-
Wanger International		56,770		(33,129	)		23,641			20,357		(64,464	)		(44,107	)
Wanger USA		-		-			-			-		-			-

59

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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
12/31/2019		30,129,720	$	15.18	to	$	11.74	$	97,353,579		2.34	%		0.40	%	to	2.85	%		17.73	%	to	14.93	%
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	)
AB Growth and Income Class B Shares
12/31/2019		66,912,738		2.76	to		12.57		249,977,608		1.03			0.30		to	2.80			23.24		to	20.24
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	)
AB Large Cap Growth Class B Shares
12/31/2019		11,372,716		3.81	to		16.41		31,230,390		-			0.30		to	2.80			33.96		to	30.70
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
American Funds - Asset Allocation Class 2 Shares
12/31/2019		194,454,343		17.00	to		12.24		819,073,416		1.95			0.60		to	2.95			20.51		to	17.76
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	)
American Funds - Bond Class 2 Shares
12/31/2019		64,327,748		11.32	to		10.37		230,089,383		2.69			0.60		to	2.95			8.70		to	6.22
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	)
American Funds - Growth Class 2 Shares
12/31/2019		60,243,138		24.27	to		15.13		679,623,629		0.80			0.60		to	2.95			29.99		to	27.03
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
American Funds - Growth-Income Class 2 Shares
12/31/2019		55,567,642		21.87	to		13.74		578,289,945		1.79			0.60		to	2.95			25.38		to	22.52
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	)
American Funds - International Class 2 Shares
12/31/2019		46,533,316		14.76	to		12.92		248,531,886		1.55			0.60		to	2.95			22.15		to	19.36
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	)

60

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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
12/31/2019		6,249,446	$	2.63	to	$	11.24	$	20,016,237		2.39	%		1.25	%	to	2.65	%		22.38	%	to	20.71	%
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	)
BlackRock Global Allocation V.I. Class I Shares
12/31/2019		4,729,879		3.19	to		11.46		10,712,286		1.24			1.25		to	2.65			16.53		to	14.94
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	)
BlackRock High Yield V.I. Class I Shares
12/31/2019		1,340,935		2.83	to		11.16		3,651,853		5.40			1.25		to	2.65			13.87		to	12.31
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	)
DFA VA Equity Allocation
12/31/2019(1)		-		10.04	to		10.04		-		-			0.27		to	0.47			-		to	-
DFA VA Global Bond
12/31/2019(1)		-		10.01	to		10.01		-		-			0.27		to	0.47			-		to	-
DFA VA Global Moderate Allocation
12/31/2019(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-
DFA VA International Small
12/31/2019(1)		-		10.15	to		10.14		-		-			0.27		to	0.47			-		to	-
DFA VA International Value
12/31/2019(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-
DFA VA Short-Term Fixed
12/31/2019(1)		-		10.00	to		10.00		-		-			0.27		to	0.47			-		to	-
DFA VA U.S. Large Value
12/31/2019(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-
DFA VA U.S. Targeted Value
12/31/2019(1)		-		9.99	to		9.99		-		-			0.27		to	0.47			-		to	-
Fidelity® VIP Balanced Service Class 2
12/31/2019		125,709,751		2.27	to		12.65		457,401,722		1.58			0.30		to	2.65			23.74		to	20.91
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	)
Fidelity® VIP Contrafund® Initial Class
12/31/2019		44,170		2.68	to		13.61		208,350		0.37			0.30		to	2.70			31.18		to	28.12
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	)
Fidelity® VIP Contrafund® Service Class 2
12/31/2019		122,971,431		3.20	to		13.54		671,378,964		0.22			0.30		to	2.80			30.88		to	27.70
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	)

61

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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 Equity-Income Initial Class
12/31/2019		22,709	$	1.95	to	$	11.99	$	46,431		2.02	%		0.30	%	to	2.70	%		27.06	%	to	24.09	%
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	)
Fidelity® VIP Equity-Income Service Class 2
12/31/2019		18,185,698		2.46	to		11.92		41,513,921		1.78			0.30		to	2.80			26.73		to	23.65
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	)
Fidelity® VIP Growth Initial Class
12/31/2019		7,797		3.32	to		16.40		22,321		0.26			0.30		to	2.70			33.91		to	30.78
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
Fidelity® VIP Growth Service Class 2
12/31/2019		14,824,936		3.70	to		16.33		39,103,539		0.06			0.30		to	2.80			33.58		to	30.33
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
Fidelity® VIP Growth Opportunities Service Class 2
12/31/2019		862,593		20.18	to		19.27		3,004,319		-			1.25		to	2.80			38.76		to	36.67
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
Fidelity® VIP Mid Cap Initial Class
12/31/2019		18,009		2.37	to		11.50		55,425		0.86			0.30		to	2.70			23.08		to	20.20
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	)
Fidelity® VIP Mid Cap Service Class 2
12/31/2019		68,400,272		2.91	to		11.50		354,595,211		0.69			0.30		to	2.80			22.80		to	19.82
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	)
Fidelity® VIP Value Strategies Initial Class
12/31/2019		81,496		2.01	to		12.03		341,053		1.69			0.30		to	2.50			34.12		to	31.25
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	)
Fidelity® VIP Value Strategies Service Class 2
12/31/2019		41,539,468		2.63	to		11.98		167,567,384		1.47			0.30		to	2.80			33.70		to	30.45
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	)

62

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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
Franklin Allocation Class 4 Shares
12/31/2019		33,952,154	$	1.60	to	$	11.05	$	73,995,819		3.32	%		0.60	%	to	2.80	%		18.85	%	to	16.31	%
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	)
Franklin Income Class 2 Shares
12/31/2019		36,589,063		1.65	to		11.20		57,808,661		5.39			1.00		to	2.80			14.91		to	12.90
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	)
Franklin Mutual Shares Class 2 Shares
12/31/2019		9,029,439		1.57	to		11.02		13,710,436		1.79			1.00		to	2.80			21.36		to	19.23
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	)
Franklin Templeton Foreign Class 2 Shares
12/31/2019		21,486,432		1.08	to		10.21		22,067,192		1.74			1.00		to	2.80			11.42		to	9.46
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	)
Invesco V.I. American Franchise Series II Shares
12/31/2019		2,917,087		2.56	to		15.10		6,803,867		-			0.30		to	2.80			36.02		to	32.71
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
Janus Henderson - Enterprise Service Shares
12/31/2019		7,606,776		4.76	to		15.45		22,867,967		0.05			0.30		to	2.80			34.75		to	31.48
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
Janus Henderson - Global Research Service Shares
12/31/2019		16,122,487		2.38	to		13.80		25,159,601		0.85			0.30		to	2.80			28.33		to	25.21
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	)
Janus Henderson - Mid Cap Value Service Shares
12/31/2019		1,112,449		12.15	to		11.61		3,137,143		1.47			1.25		to	2.80			28.44		to	26.51
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	)
MFS® New Discovery Service Class
12/31/2019		12,964,008		3.96	to		15.94		44,689,857		-			0.30		to	2.80			40.85		to	37.43
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	)

63

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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
MFS® Total Return Service Class
12/31/2019		19,874,828	$	2.21	to	$	11.61	$	41,580,126		2.09	%		0.30	%	to	2.80	%		19.76	%	to	16.85	%
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	)
NVIT Emerging Markets Class D Shares
12/31/2019		1,524		13.90	to		13.02		21,048		2.16			0.30		to	2.50			22.21		to	19.59
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
12/31/2019		728,389		9.62	to		9.27		1,003,775		2.32			1.25		to	2.50			5.97		to	4.68
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	)
Rational Insider Buying VA
12/31/2019		885,646		12.85	to		12.39		1,681,987		-			1.25		to	2.50			22.47		to	20.98
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	)
State Street Total Return V.I.S. Class 3 Shares
12/31/2019		21,706,994		14.25	to		11.42		52,200,791		2.08			0.40		to	2.85			15.11		to	12.37
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	)
TA 60/40 Allocation Service Class
12/31/2019		3,823,378		11.55	to		11.12		25,139,161		0.17			0.20		to	2.50			19.89		to	17.20
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
12/31/2019		29,667,346		2.41	to		11.08		72,383,047		6.26			0.30		to	2.80			13.87		to	11.10
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	)
TA Aegon High Yield Bond Service Class
12/31/2019		31,316,439		13.17	to		11.04		155,487,204		5.97			0.20		to	2.65			13.74		to	11.03
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	)
TA Aegon U.S. Government Securities Initial Class
12/31/2019		38,276,111		1.57	to		10.15		63,019,860		2.05			0.30		to	2.80			6.28		to	3.70
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	)

64

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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 U.S. Government Securities Service Class
12/31/2019		70,935,391	$	10.72	to	$	10.08	$	191,285,315		1.62	%		0.20	%	to	2.80	%		6.14	%	to	3.45	%
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	)
TA American Funds Managed Risk - Balanced Service Class
12/31/2019		76,825,970		12.84	to		11.37		940,541,090		1.25			0.20		to	2.50			17.57		to	14.93
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
12/31/2019		116,924,848		2.36	to		11.63		323,795,182		2.47			0.30		to	2.80			23.54		to	20.53
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	)
TA Barrow Hanley Dividend Focused Service Class
12/31/2019		39,289,800		17.61	to		11.60		163,985,604		2.21			0.20		to	2.65			23.33		to	20.38
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	)
TA BlackRock Global Allocation Service Class
12/31/2019		409,496,790		13.71	to		11.38		1,137,383,093		0.94			0.20		to	2.65			17.61		to	14.81
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	)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class
12/31/2019		25,329,115		11.28	to		10.72		271,457,068		2.99			0.20		to	2.50			14.48		to	11.91
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	)
TA BlackRock Global Allocation Managed Risk - Growth Service Class
12/31/2019		18,027,295		11.52	to		11.13		196,825,421		3.33			0.20		to	2.50			17.69		to	15.05
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	)
TA BlackRock Global Real Estate Securities Initial Class
12/31/2019		14,634,220		2.04	to		11.70		42,084,933		0.90			0.30		to	2.80			24.82		to	21.78
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	)
TA BlackRock Global Real Estate Securities Service Class
12/31/2019		24,184,329		12.49	to		11.67		86,036,786		0.60			0.20		to	2.65			24.64		to	21.66
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	)

65

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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 Government Money Market Initial Class
12/31/2019		82,743,032	$	1.13	to	$	9.55	$	88,719,890		1.96	%		0.30	%	to	2.80	%		1.67	%	to	(0.81	)  %
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	)
TA BlackRock Government Money Market Service Class
12/31/2019		155,242,739		10.03	to		9.48		348,881,228		1.70			0.20		to	2.65			1.51		to	(0.91	)
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	)
TA BlackRock iShares Edge 100 Service Class
12/31/2019		3,371,713		15.24	to		12.83		49,637,017		1.54			0.20		to	2.50			24.33		to	21.54
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 iShares Edge 40 Initial Class
12/31/2019		9,936,931		1.77	to		11.18		17,996,551		2.24			0.30		to	2.80			14.96		to	12.17
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	)
TA BlackRock iShares Edge 40 Service Class
12/31/2019		115,789,426		12.91	to		11.15		292,492,929		1.96			0.20		to	2.65			14.87		to	12.13
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	)
TA BlackRock iShares Edge 50 Service Class
12/31/2019		24,058,879		12.97	to		11.54		301,321,199		0.94			0.20		to	2.50			15.80		to	13.21
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 iShares Edge 75 Service Class
12/31/2019		8,767,414		13.96	to		12.18		117,927,147		0.97			0.20		to	2.50			20.04		to	17.34
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
12/31/2019		361,724,078		14.35	to		11.49		1,256,854,629		2.17			0.20		to	2.80			16.82		to	13.86
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	)
TA Greystone International Growth Initial Class
12/31/2019		46,784,649		2.13	to		12.36		82,908,303		1.64			0.30		to	2.80			27.30		to	24.20
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	)

66

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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 Service Class
12/31/2019		19,878,211	$	13.48	to	$	12.31	$	101,695,343		1.37	%		0.20	%	to	2.65	%		27.15	%	to	24.11	%
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	)
TA International Equity Index Service Class
12/31/2019		3,400,933		11.47	to		10.80		38,023,654		1.30			0.35		to	2.65			20.68		to	17.97
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
12/31/2019		184,402,723		17.29	to		13.04		998,779,258		1.37			0.20		to	2.65			21.53		to	18.63
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	)
TA Janus Mid-Cap Growth Initial Class
12/31/2019		38,655,012		3.52	to		15.79		87,346,650		0.07			0.30		to	2.80			36.30		to	32.99
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	)
TA Janus Mid-Cap Growth Service Class
12/31/2019		20,310,940		19.08	to		15.74		146,913,356		-			0.20		to	2.65			36.06		to	32.81
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	)
TA JPMorgan Asset Allocation - Conservative Initial Class
12/31/2019		83,056,161		1.91	to		11.36		156,640,797		2.64			0.30		to	2.80			13.56		to	10.80
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	)
TA JPMorgan Asset Allocation - Conservative Service Class
12/31/2019		338,740,194		13.17	to		11.31		995,998,146		2.23			0.20		to	2.65			13.32		to	10.62
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	)
TA JPMorgan Asset Allocation - Growth Initial Class
12/31/2019		116,876,305		2.28	to		12.89		276,399,883		1.73			0.30		to	2.80			25.67		to	22.62
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	)
TA JPMorgan Asset Allocation - Growth Service Class
12/31/2019		56,218,037		16.88	to		12.86		223,490,179		1.49			0.20		to	2.65			25.61		to	22.61
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	)

67

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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 - Moderate Initial Class
12/31/2019		179,888,900	$	2.09	to	$	11.81	$	374,973,973		2.17	%		0.30	%	to	2.80	%		16.07	%	to	13.25	%
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	)
TA JPMorgan Asset Allocation - Moderate Service Class
12/31/2019		1,411,687,562		14.18	to		11.78		5,681,558,353		1.94			0.20		to	2.65			15.95		to	13.18
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	)
TA JPMorgan Asset Allocation - Moderate Growth Initial Class
12/31/2019		221,095,017		2.19	to		12.25		494,980,786		2.18			0.30		to	2.80			19.65		to	16.74
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	)
TA JPMorgan Asset Allocation - Moderate Growth Service Class
12/31/2019		1,072,176,193		15.37	to		12.21		3,277,444,014		1.93			0.20		to	2.65			19.55		to	16.70
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	)
TA JPMorgan Core Bond Service Class
12/31/2019		63,811,767		11.41	to		10.39		267,800,611		2.33			0.20		to	2.65			8.04		to	5.46
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	)
TA JPMorgan Enhanced Index Initial Class
12/31/2019		41,798,145		3.22	to		13.56		135,407,620		1.19			0.30		to	2.80			30.64		to	27.47
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	)
TA JPMorgan Enhanced Index Service Class
12/31/2019		9,090,987		21.30	to		13.51		79,574,306		0.97			0.20		to	2.65			30.43		to	27.31
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	)
TA JPMorgan International Moderate Growth Initial Class
12/31/2019		69,370		1.47	to		11.65		100,195		2.36			0.30		to	2.50			17.42		to	14.90
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	)
TA JPMorgan International Moderate Growth Service Class
12/31/2019		263,802,109		12.91	to		11.61		556,497,257		2.03			0.20		to	2.80			17.37		to	14.41
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	)

68

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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 Mid Cap Value Service Class
12/31/2019		41,359,300	$	18.37	to	$	11.38	$	237,476,565		1.17	%		0.20	%	to	2.80	%		25.74	%	to	22.56	%
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	)
TA JPMorgan Tactical Allocation Service Class
12/31/2019		260,751,494		12.91	to		10.87		1,220,599,661		2.08			0.20		to	2.65			11.69		to	9.02
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	)
TA Legg Mason Dynamic Allocation - Balanced Service Class
12/31/2019		188,777,088		13.30	to		1.17		1,048,148,666		1.59			0.20		to	2.50			15.83		to	13.20
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	)
TA Legg Mason Dynamic Allocation - Growth Service Class
12/31/2019		87,000,387		13.86	to		1.29		447,785,619		1.37			0.20		to	2.50			16.59		to	13.94
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	)
TA Levin Large Cap Value Service Class
12/31/2019		1,468,558		10.55	to		10.16		10,944,450		0.27			0.20		to	2.50			16.76		to	14.14
12/31/2018(1)		323,389		9.03	to		8.90		2,100,210		0.19			0.20		to	2.50			-		to	-
TA Madison Diversified Income Service Class
12/31/2019		51,519,543		13.86	to		11.41		179,387,536		1.53			0.20		to	2.50			14.71		to	12.14
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	)
TA Managed Risk - Balanced ETF Service Class
12/31/2019		1,162,728,895		13.81	to		11.51		5,570,038,106		1.96			0.20		to	2.80			15.42		to	12.50
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	)
TA Managed Risk - Conservative ETF Service Class
12/31/2019		210,974,386		13.19	to		11.06		666,135,464		2.04			0.20		to	2.80			11.97		to	9.14
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	)

69

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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
12/31/2019		735,600,165	$	14.92	to	$	12.03	$	2,476,677,187		1.74	%		0.20	%	to	2.80	%		19.17	%	to	16.16	%
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	)
TA Market Participation Strategy Service Class
12/31/2019		75,395,519		14.95	to		11.76		393,660,137		0.90			0.20		to	2.50			18.34		to	15.69
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	)
TA Morgan Stanley Capital Growth Initial Class
12/31/2019		95,615,249		4.27	to		17.14		372,441,653		-			0.30		to	2.80			23.37		to	20.37
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
TA Morgan Stanley Capital Growth Service Class
12/31/2019		31,609,616		28.63	to		17.10		362,045,816		-			0.20		to	2.65			23.22		to	20.28
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
TA Multi-Managed Balanced Initial Class
12/31/2019		34,030,880		2.87	to		12.26		97,122,745		1.66			0.30		to	2.80			21.40		to	18.45
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	)
TA Multi-Managed Balanced Service Class
12/31/2019		193,463,242		16.94	to		12.22		1,261,699,037		1.43			0.20		to	2.65			21.25		to	18.36
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	)
TA Multi-Manager Alternative Strategies Service Class
12/31/2019		443,014		10.76	to		9.99		4,522,748		0.76			0.20		to	2.50			8.05		to	5.59
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	)
TA PIMCO Tactical - Balanced Service Class
12/31/2019		133,079,664		14.24	to		11.54		545,140,658		0.16			0.20		to	2.65			19.44		to	16.59
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	)
TA PIMCO Tactical - Conservative Service Class
12/31/2019		63,063,445		13.81	to		11.38		257,753,596		0.10			0.20		to	2.65			17.33		to	14.53
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	)

70

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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
12/31/2019		67,856,653	$	14.80	to	$	11.87	$	344,227,526		-	%		0.20	%	to	2.65	%		21.31	%	to	18.42	%
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	)
TA PIMCO Total Return Initial Class
12/31/2019		97,537,181		1.78	to		10.48		162,583,767		2.53			0.30		to	2.80			8.09		to	5.46
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	)
TA PIMCO Total Return Service Class
12/31/2019		289,976,616		11.29	to		10.46		721,416,264		2.26			0.20		to	2.65			8.00		to	5.42
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	)
TA PineBridge Inflation Opportunities Service Class
12/31/2019		68,795,573		10.06	to		10.23		148,339,095		2.30			0.20		to	2.65			7.99		to	5.41
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	)
TA ProFunds UltraBear Service Class (OAM)
12/31/2019		528,747,957		0.08	to		3.92		12,630,584		-			0.45		to	2.65			(43.10	)	to	(44.33	)
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	)
TA QS Investors Active Asset Allocation - Conservative Service Class
12/31/2019		121,522,304		12.59	to		11.15		339,344,934		1.97			0.20		to	2.65			11.01		to	8.36
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	)
TA QS Investors Active Asset Allocation - Moderate Service Class
12/31/2019		333,714,080		12.83	to		11.35		1,331,045,066		1.81			0.20		to	2.65			10.91		to	8.26
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	)
TA QS Investors Active Asset Allocation - Moderate Growth Service Class
12/31/2019		167,991,889		13.18	to		11.59		522,009,134		1.66			0.20		to	2.65			11.13		to	8.48
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	)
TA Small/Mid Cap Value Initial Class
12/31/2019		18,085,702		2.98	to		11.62		114,726,591		0.96			0.30		to	2.80			24.90		to	21.87
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	)

71

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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
12/31/2019		26,380,984	$	18.50	to	$	11.58	$	149,629,508		0.76	%		0.20	%	to	2.65	%		24.69	%	to	21.72	%
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	)
TA T. Rowe Price Small Cap Initial Class
12/31/2019		39,725,671		4.16	to		13.72		136,379,747		-			0.30		to	2.80			32.37		to	29.15
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
TA T. Rowe Price Small Cap Service Class
12/31/2019		32,292,237		22.54	to		13.67		313,681,024		-			0.20		to	2.65			32.12		to	28.97
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	)
TA TS&W International Equity Initial Class
12/31/2019		40,250,949		1.86	to		11.59		83,257,900		1.42			0.30		to	2.80			20.70		to	17.77
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	)
TA TS&W International Equity Service Class
12/31/2019		10,975,213		13.12	to		11.55		46,304,060		1.19			0.20		to	2.65			20.49		to	17.62
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	)
TA U.S. Equity Index Service Class
12/31/2019		13,156,763		13.95	to		13.13		178,742,034		0.49			0.35		to	2.65			30.44		to	27.52
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
12/31/2019		169,149,426		3.40	to		16.40		460,449,558		0.12			0.30		to	2.80			39.63		to	36.23
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
TA WMC US Growth Service Class
12/31/2019		29,264,303		25.30	to		16.35		222,359,352		-			0.20		to	2.65			39.40		to	36.07
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
Vanguard® - Capital Growth
12/31/2019(1)		-		10.00	to		10.00		-		-			0.27		to	0.47			-		to	-
Vanguard® - Conservative Allocation
12/31/2019(1)		-		10.02	to		10.02		-		-			0.27		to	0.47			-		to	-
Vanguard® - Diversified Value
12/31/2019(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-
Vanguard® Balanced
12/31/2019(1)		-		10.02	to		10.02		-		-			0.27		to	0.47			-		to	-

72

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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
Vanguard® Equity Income
12/31/2019(1)		-	$	10.01	to	$	10.01	$	-		-	%		0.27	%	to	0.47	%		-	%	to	-	%
Vanguard® Equity Index
12/31/2019		1,106,204		22.23	to		13.96		5,072,380		1.90			0.27		to	2.50			30.91		to	28.10
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
Vanguard® Global Bond Index
12/31/2019(1)		-		10.00	to		10.00		-		-			0.27		to	0.47			-		to	-
Vanguard® Growth
12/31/2019(1)		-		10.02	to		10.02		-		-			0.27		to	0.47			-		to	-
Vanguard® High Yield Bond
12/31/2019(1)		-		10.00	to		10.00		-		-			0.27		to	0.47			-		to	-
Vanguard® International
12/31/2019		570,592		17.44	to		14.86		2,830,970		1.30			0.27		to	2.70			30.82		to	27.77
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	)
Vanguard® Mid-Cap Index
12/31/2019		344,777		20.02	to		12.78		2,287,080		1.30			0.27		to	2.70			30.48		to	27.43
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	)
Vanguard® Moderate Allocation
12/31/2019(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-
Vanguard® Money Market
12/31/2019(1)		-		10.00	to		10.00		-		0.07			0.27		to	0.47			-		to	-
Vanguard® Real Estate Index
12/31/2019		164,384		15.77	to		11.64		724,052		2.47			0.27		to	2.50			28.42		to	25.67
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
Vanguard® Short-Term Investment Grade
12/31/2019		834,530		11.06	to		10.06		4,238,215		2.42			0.27		to	2.70			5.38		to	2.92
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
Vanguard® Total Bond Market Index
12/31/2019		550,251		11.32	to		10.36		3,671,401		2.17			0.27		to	2.70			8.35		to	5.82
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	)
Vanguard® Total International Stock Market Index
12/31/2019(1)		-		10.07	to		10.06		-		-			0.27		to	0.47			-		to	-
Vanguard® Total Stock Market Index
12/31/2019(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-

73

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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 Global Perspectives Class S Shares
	12/31/2019			1,913	$	11.67	to	$	11.22	$	22,324		3.33	%		1.29	%	to	2.14	%		16.56	%	to	15.58	%
	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
	12/31/2019			93		13.01	to		12.50		1,216		1.92			1.29		to	2.14			23.18		to	22.14
	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
Voya Strategic Allocation Conservative Class S Shares
	12/31/2019			-		11.62	to		11.17		-		-			1.29		to	2.14			13.01		to	12.05
	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
	12/31/2019			-		12.22	to		11.75		-		-			1.29		to	2.14			17.42		to	16.42
	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
	12/31/2019			58,273		1.78	to		13.08		369,851		0.84			0.30		to	2.50			29.60		to	26.82
	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	)
Wanger USA
	12/31/2019			-		2.84	to		14.09		-		-			0.30		to	2.50			30.71		to	27.91
	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	)

⁽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.

74

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

5.  Financial Highlights (continued)

*** 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.

75

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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 0.05% 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 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%

76

Transamerica Life Insurance Company

Separate Account VA B

Notes to Financial Statements

December 31, 2019

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 in the financial statements.

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. Since January 2020, the Coronavirus disease (COVID-19) pandemic and economic uncertainties have arisen which have impacted the Separate Account’s net assets. The extent to which the COVID-19 pandemic will continue to impact the net assets will depend on future developments, which are highly uncertain and cannot be estimated, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic.

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.

77

FINANCIAL STATEMENTS – STATUTORY BASIS

AND SUPPLEMENTARY INFORMATION

Transamerica Financial Life Insurance Company

Years Ended December 31, 2019, 2018 and 2017

Transamerica Financial Life Insurance Company

Financial Statements – Statutory Basis

and Supplementary Information

Years Ended December 31, 2019, 2018, and 2017

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	21
4. Fair Values of Financial Instruments	25
5. Investments	33
6. Premium and Annuity Considerations Deferred and Uncollected	48
7. Policy and Contract Attributes	48
8. Reinsurance	61
9. Income Taxes	63
10. Capital and Surplus	70
11. Securities Lending	71
12. Retirement and Compensation Plans	73
13. Related Party Transactions	74
14. Managing General Agents	78
15. Commitments and Contingencies	78
16. Sales, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities	80
17. Reconciliation to Statutory Statement	81
18. Subsequent Events	82
Appendix A – Listing of Affiliated Companies	83
Statutory – Basis Financial Statement Schedules
Summary of Investments – Other Than Investments in Related Parties	87
Supplementary Insurance Information	88
Reinsurance	89

Report of Independent Auditors

To the Board of Directors of

Transamerica Financial Life Insurance Company

We have audited the accompanying statutory-basis financial statements of Transamerica Financial Life Insurance Company (the “Company”), which comprise the balance sheets – statutory basis as of December 31, 2019 and 2018, and the related statements of operations – statutory basis, of changes in capital and surplus – statutory basis, and of cash flow – statutory basis for each of the three years in the period ended December 31, 2019, including the related notes and schedules of supplementary insurance information and reinsurance as of December 31, 2019, 2018 and for each of the three years in the period ended December 31, 2019 and summary of investments—other than investments in related parties as of December 31, 2019 listed in the accompanying index (collectively referred to as the “financial statements”).

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

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 New York Department of Financial Services, 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.

PricewaterhouseCoopers LLP, 1 N Upper Wacker Drive, Chicago, IL 60606

T: 312-298-2000, F: , www.pwc.com

1

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, 2019 and 2018 or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2019.

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, 2019 and 2018 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in accordance with the accounting practices prescribed or permitted by the New York Department of Financial Services described in Note 2.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

April 27, 2020

PricewaterhouseCoopers LLP, 1 N Upper Wacker Drive, Chicago, IL 60606

T: 312-298-2000, F: , www.pwc.com

2

Transamerica Financial Life Insurance Company

Balance Sheets—Statutory Basis

(Dollars in Thousands)

	December 31 2019			December 31 2018
Admitted assets
Cash, cash equivalents and short-term investments	$	439,852		$	330,590
Bonds		5,332,758			5,648,863
Preferred stocks		4,552			4,552
Common stocks		6,036			5,046
Mortgage loans on real estate		1,546,510			1,480,920
Policy loans		130,787			130,605
Securities lending reinvested collateral assets		311,367			319,971
Derivatives		113,954			106,371
Other invested assets		369,406			253,098
Total cash and invested assets		8,255,222			8,280,016
Accrued investment income		69,431			74,495
Premiums deferred and uncollected		10,821			10,995
Net deferred income tax asset		28,050			27,355
Other assets		20,033			28,841
Separate account assets		23,523,988			21,069,870
Total admitted assets	$	31,907,545		$	29,491,572
Liabilities and capital and surplus
Aggregate reserves for policies and contracts	$	6,493,362		$	6,639,574
Policy and contract claim reserves		29,249			41,237
Liability for deposit-type contracts		29,577			29,504
Transfers from separate accounts due or accrued		(194,971	)		(181,916	)
Asset valuation reserve		133,205			120,543
Interest maintenance reserve		21,139			23,034
Derivatives		102,041			64,073
Payable for collateral under securities loaned and other transactions		371,405			381,115
Borrowed money		66,348			—
Other liabilities		307,705			214,030
Separate account liabilities		23,523,985			21,069,868
Total liabilities		30,883,045			28,401,062
Total capital and surplus		1,024,500			1,090,510
Total liabilities and capital and surplus	$	31,907,545		$	29,491,572

See accompanying notes.

3

Transamerica Financial Life Insurance Company

Statements of Operations—Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2019			2018			2017
Revenues
Premiums and annuity considerations	$	5,305,953		$	5,202,469		$	4,733,929
Net investment income		344,337			347,235			371,734
Fee revenue and other income		533,267			323,923			354,087
Total revenue		6,183,557			5,873,627			5,459,750
Benefits and expenses
Death benefits		69,241			69,827			69,232
Annuity benefits		117,349			107,592			108,660
Accident and health benefits		44,907			61,299			67,199
Surrender benefits		6,667,014			8,149,104			5,504,367
Other benefits		9,373			8,613			8,243
Net increase (decrease) in reserves		(139,807	)		(127,988	)		(371,102	)
Commissions		132,253			146,319			150,601
Net transfers to (from) separate accounts		(1,200,910	)		(2,891,935	)		(423,849	)
General insurance expenses and other		122,195			107,491			89,830
Total benefits and expenses		5,821,615			5,630,322			5,203,181
Gain (loss) from operations before federal income taxes		361,942			243,305			256,569
Federal income tax (benefit) expense		21,455			11,019			26,972
Net gain (loss) from operations		340,487			232,286			229,597
Net realized capital gains (losses), after tax and amounts transferred to interest maintenance reserve		17,195			(30,176	)		(70,939	)
Net income (loss)	$	357,682		$	202,110		$	158,658

See accompanying notes.

4

Transamerica Financial Life Insurance Company

Statements of Changes in Capital and

Surplus – Statutory Basis

(Dollars in Thousands)

	Common Stock		Preferred Stock			Paid-in Surplus			Special Surplus Funds			Unassigned Surplus			Total Capital and Surplus
Balance at January 1, 2017	$	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
Net income (loss)		—		—			—			(479	)		202,589			202,110
Change in net unrealized capital gains (losses), net of taxes		—		—			—			—			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			981			867
Balance at December 31, 2018	$	2,143	$	—		$	879,334		$	10,781		$	198,252		$	1,090,510

Continued on next page.

5

Transamerica Financial Life Insurance Company

Statements of Changes in Capital and Surplus – Statutory Basis (continued)

(Dollars in Thousands)

	Common Stock			Preferred Stock		Paid-in Surplus			Special Surplus Funds			Unassigned Surplus			Total Capital and Surplus
Balance at December 31, 2018	$	2,143		$	—	$	879,334		$	10,781		$	198,252		$	1,090,510
Net income (loss)		—			—		—			2,239			355,443			357,682
Change in net unrealized capital gains/losses, net of tax		—			—		—			—			(19,374	)		(19,374	)
Change in net deferred income tax asset		—			—		—			—			18,785			18,785
Change in nonadmitted assets		—			—		—			—			(14,055	)		(14,055	)
Change in asset valuation reserve		—			—		—			—			(12,662	)		(12,662	)
Change in surplus as a result of reinsurance		—			—		—			—			(225,323	)		(225,323	)
Return of capital		—			—		(99,879	)		—			—			(99,879	)
Dividends to stockholders		—			—		—			—			(75,000	)		(75,000	)
Other changes—net		(103	)		—		(179	)		(92	)		4,190			3,816
Balance at December 31, 2019	$	2,040		$	—	$	779,276		$	12,928		$	230,256		$	1,024,500

See accompanying notes.

6

Transamerica Financial Life Insurance Company

Statements of Cash Flow – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2019			2018			2017
Operating activities
Premiums and annuity considerations	$	5,306,408		$	5,203,738		$	5,068,249
Net investment income		355,231			359,398			376,164
Other income		306,588			302,160			305,794
Benefit and loss related payments		(6,919,166	)		(8,383,355	)		(5,769,148	)
Net transfers from separate accounts		1,187,843			2,911,354			586,484
Commissions and operating expenses		(249,367	)		(261,138	)		(271,415	)
Federal income taxes (paid) received		(8,151	)		(23,519	)		13,923
Net cash provided by (used in) operating activities		(20,614	)		108,638			310,051
Investing activities
Proceeds from investments sold, matured or repaid		2,125,769			1,564,464			1,450,534
Costs of investments acquired		(1,943,403	)		(1,357,882	)		(1,642,388	)
Net change in policy loans		(182	)		(4,738	)		(3,842	)
Net cash provided by (used in) investing activities		182,184			201,844			(195,696	)
Financing and miscellaneous activities
Capital and paid in surplus (returned) received		(100,161	)		(56,569	)		1,784
Net deposits (withdrawals) on deposit-type contracts		(604	)		(4,826	)		(4,319	)
Net change in borrowed money		66,176			(204,340	)		184,385
Net change in payable for collateral under securities lending and other transactions		1,303			(106,951	)		115,782
Other cash (applied) provided		55,978			(38,284	)		(138,414	)
Dividends to stockholders		(75,000	)		(103,410	)		(160,000	)
Net cash used in financing and miscellaneous activities		(52,308	)		(514,380	)		(782	)
Net increase (decrease) in cash, cash equivalents and short-term investments		109,262			(203,898	)		113,573
Cash, cash equivalents and short-term investments:
Beginning of year		330,590			534,488			420,915
End of year	$	439,852		$	330,590		$	534,488

See accompanying notes.

7

Transamerica Financial Life Insurance Company

Statements of Cash Flow (supplemental) – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2019		2018		2017
Supplemental disclosures of cash flow information
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

8

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands)

December 31, 2019

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) (92.3% of shares) and minority owned by Transamerica Life Insurance Company (TLIC) (7.7% 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.

Nature of Business

The Company sells fixed annuity, variable life and annuity products, group life coverages, life insurance, index universal life, and guaranteed investment contracts. 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.

9

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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. 26R, Bonds, 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.

10

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 statements 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 statements 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 or the entity will likely not 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 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 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.

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 and are reported in changes in capital and surplus.

11

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.

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 statements 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 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.

Real estate 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 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 statements 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.

12

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 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. Due and accrued amounts determined to be uncollectible are written off through the statements of operations.

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. The 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 statements 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.

In 2019, the NAIC revised the AVR Factors (basic contribution, reserve objective and maximum reserve) to be consistent with the RBC (Risk Based Capital) after-tax factors, which were amended in 2018 as a result of federal tax reform. The AVR factor changes are effective for year-end 2019. As of December 31, 2019, the factor changes decreased capital and surplus by $13,541. The changes were recorded to the change in asset valuation reserve line of the statement of changes in capital and surplus.

13

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 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) 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 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 (RSAT). 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. In these transactions, the derivative is accounted for in a manner consistent with the cash instrument and replicated asset. For GAAP, the derivative is reported at fair value, with the changes in fair value reported in income.

(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.

14

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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, in the financial statements. If the swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

Cross currency swaps are utilized to mitigate risks when the Company holds foreign denominated assets or liabilities; therefore, converting the asset or liability to a U.S. dollar 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.

15

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 market risk on 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, in the financial statements. If the swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the 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 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 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).

16

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 reinsurance receivables, accounts receivable and general insurance receivables. Other “admitted assets” are valued principally at cost, as required or permitted by New York Insurance Laws.

Other liabilities consist primarily of remittances, amounts withheld by the Company, commissions payable, and accrued expenses.

Separate Accounts

The majority of 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.

17

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

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.

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.

In accordance with SSAP No. 51R, Life Contracts, and No. 54R, Individual and Group Accident and Health Contracts, the Company reports the amount of insurance, if any, for which the gross premiums are less than the net premiums according to the valuation standards and any related premium deficiency reserve established. Anticipated investment income is included as a factor in the health contract premium deficiency calculation.

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.

18

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 statements 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.

19

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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. Unlike GAAP, SSAP No. 101 does not consider state income taxes in the measurement of deferred taxes. SSAP No. 101 also requires additional testing to measure gross deferred tax assets. The additional testing limits gross deferred tax asset admission to 1) the amount of federal income taxes paid in prior years recoverable through hypothetical loss carrybacks of existing temporary differences expected to reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback provisions, not to exceed three years, plus 2) the amount of remaining gross deferred 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 gross deferred tax assets that can be offset against existing gross deferred tax liabilities after considering character (i.e. ordinary versus capital) and reversal patterns. The Company’s reported net deferred tax asset or liability is the sum of gross deferred tax assets admitted through this three part test plus the sum of all deferred tax liabilities.

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 are 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 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.

20

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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).

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.

3. Accounting Changes

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 January 1, 2019, the NAIC adopted revisions to SSAP No. 30, Unaffiliated Common Stock, which updated the definition of common stock to include Securities and Exchange Commission (SEC) registered closed -end funds and unit investment trusts. The adoption of this guidance did not impact the financial position or results of operations of the Company.

21

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Revision to Prior Years

During 2019, the Company identified errors in prior year financial statements for which the Company has determined it appropriate to revise. The Company assessed the materiality of these revisions and concluded these revisions are not material to the December 31, 2018 and 2017 financial statements as a whole. The following tables show the impact of the revision:

	Year Ended December 31, 2018
	As Reported			Adjustment			As Revised
Balance Sheets
Securities lending reinvested collateral assets	$	308,971		$	11,000		$	319,971
Total cash and invested assets	$	8,269,016		$	11,000		$	8,280,016
Total admitted assets	$	29,480,572		$	11,000		$	29,491,572
Payable for collateral under securities loaned and other transactions	$	370,115		$	11,000		$	381,115
Total liabilities	$	28,390,062		$	11,000		$	28,401,062
Total liabilities and capital and surplus	$	29,480,572		$	11,000		$	29,491,572
Statements of Operations
Revenues
Premiums and other considerations	$	5,753,819		$	(551,350	)	$	5,202,469
Net investment income		350,635			(3,400	)		347,235
Fee revenue and other income		313,223			10,700			323,923
Total revenue	$	6,417,677		$	(544,050	)	$	5,873,627
Benefits and expenses
Surrender benefits	$	8,728,023		$	(578,919	)	$	8,149,104
Net transfers to (from) separate accounts		(2,925,304	)		33,369			(2,891,935	)
Total benefits and expenses	$	6,175,872		$	(545,550	)	$	5,630,322
Gain (loss) from operations before dividends and federal income taxes		241,805			1,500			243,305
Federal income tax expense		9,990			1,029			11,019
Net gain (loss) from operations		231,815			471			232,286
Net realized capital gains (losses), after tax and amounts transferred to interest maintenance reserve		(31,376	)		1,200			(30,176	)
Net income (loss)	$	200,439		$	1,671		$	202,110
Statements of Changes in Capital and Surplus
Net income (loss)	$	200,439		$	1,671		$	202,110
Other changes—net	$	2,538		$	(1,671	)	$	867
Balance at December 31, 2018	$	1,090,510		$	—		$	1,090,510

22

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

Statements of Cash Flows
Operating activities
Premiums and annuity considerations	$	5,755,088		$	(551,350	)	$	5,203,738
Other income		296,360			5,800			302,160
Benefit and loss related payments		(8,962,274	)		578,919			(8,383,355	)
Net transfers from separate accounts		2,944,723			(33,369	)		2,911,354
Net cash provided by (used in) operating activities	$	108,638		$	—		$	108,638
Investing activities
Costs of investments acquired	$	(1,368,882	)	$	11,000		$	(1,357,882	)
Net cash provided by (used in) investing activities	$	190,844		$	11,000		$	201,844
Financing activities
Net change in payable for collateral under securities lending and other transactions	$	(95,951	)	$	(11,000	)	$	(106,951	)
Net cash provided by (used in) financing activities	$	(503,380	)	$	(11,000	)	$	(514,380	)
Net increase (decrease) in cash, cash equivalents and short-term investments		(203,898	)		—			(203,898	)
Cash, cash equivalents and short-term investments:
Beginning of year		534,488			—			534,488
End of year	$	330,590		$	—		$	330,590

23

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31, 2017
	As Reported			Adjustment			As Revised
Statements of Operations
Revenues
Premiums and other considerations	$	5,158,586		$	(424,657	)	$	4,733,929
Fee revenue and other income		353,437			650			354,087
Total revenue	$	5,883,757		$	(424,007	)	$	5,459,750
Benefits and expenses
Surrender benefits	$	5,956,797		$	(452,430	)	$	5,504,367
Net transfers to (from) separate accounts		(452,272	)		28,423			(423,849	)
Total benefits and expenses	$	5,627,188		$	(424,007	)	$	5,203,181
Gain (loss) from operations before dividends and federal income taxes		256,569			—			256,569
Net gain (loss) from operations		229,597			—			229,597
Net income (loss)	$	158,658		$	—		$	158,658
Statements of Cash Flows
Operating activities
Premiums and annuity considerations	$	5,492,906		$	(424,657	)	$	5,068,249
Other income		305,144			650			305,794
Benefit and loss related payments		(6,221,578	)		452,430			(5,769,148	)
Net transfers from separate accounts		614,907			(28,423	)		586,484
Net cash provided by (used in) operating activities	$	310,051		$	—		$	310,051
Net increase (decrease) in cash, cash equivalents and short-term investments		113,573			—			113,573
Cash, cash equivalents and short-term investments:
Beginning of year		420,915			—			420,915
End of year	$	534,488		$	—		$	534,488

Management has determined that the amounts primarily relate to misclassifications of balances within the statements of operations and cash flows for the years ended December 31, 2018 and 2017 related to accounting for retirement plan cash flows and other cash flow presentation reclassifications. This error resulted in offsetting misstatements to premiums and other considerations, fee revenue and other income, net transfers to (from) separate accounts and surrender benefits and corresponding offsetting misstatements within the cash provided by (used in) operating activities and cash provided by (used in) financing and miscellaneous activities. The retirement plan misclassifications had no impact to the Company’s net income or capital and surplus in the prior years.

In addition, Management reclassified certain prior year out of period adjustments from net income to capital and surplus per SSAP No. 03, Accounting changes and corrections of errors.

Reclassifications

Certain amounts in prior year financial statement balances and footnote disclosures have been reclassified to conform to the current year presentation.

24

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 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 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.

25

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

26

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

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 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, 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.

27

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

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 investment contract liabilities.

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.

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.

28

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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, 2019 and 2018, respectively:

	December 31, 2019
	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	$	364,399		$	364,385	$	229,488	$	134,911		$	—	$	—
Bonds		5,827,509			5,332,758		612,518		5,127,658			87,333		—
Preferred stocks, other than affiliates		4,759			4,552		—		4,759			—		—
Common stocks, other than affiliates		3,763			3,763		1,209		—			2,554		—
Mortgage loans on real estate		1,615,808			1,546,510		—		—			1,615,808		—
Other invested assets		25,776			22,768		—		25,743			33		—
Derivative assets:
Interest rate swaps		108,339			108,339		—		108,339			—		—
Currency swaps		2,883			1,615		—		2,883			—		—
Credit default swaps		7,469			3,751		—		7,469			—		—
Equity swaps		69			69		—		69			—		—
Equity futures		180			180		180		—			—		—
Derivative assets total		118,940			113,954		180		118,760			—		—
Policy loans		130,787			130,787		—		130,787			—		—
Securities lending reinvested collateral		241,364			241,365		5,000		236,364			—		—
Separate account assets		23,535,229			23,516,864		21,367,757		2,167,472			—		—
Liabilities
Investment contract liabilities		4,910,510			4,406,231		—		916			4,909,594		—
Derivative liabilities:
Interest rate swaps		75,773			79,526		—		75,773			—		—
Currency swaps		1,037			2,228		—		1,037			—		—
Credit default swaps		(2,673	)		1,315		—		(2,673	)		—		—
Equity swaps		14,576			14,576		—		14,576			—		—
Interest rate futures		4,135			4,135		4,135		—			—		—
Equity futures		261			261		261		—			—		—
Derivative liabilities total		93,109			102,041		4,396		88,713			—		—
Dollar repurchase agreements		66,176			66,176		—		66,176			—		—
Payable for securities lending		311,367			311,367		—		311,367			—		—
Payable for derivative cash collateral		60,038			60,038		—		60,038			—		—
Separate account annuity liabilities		23,059,251			23,058,706		—		21,520,881			1,538,370		—

29

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		$	224,732	$	203,002	$	21,730		$	—	$	—
Short-term notes receivable from affiliates		50,000			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		—		—			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			99		—
Derivative assets:
Interest rate swaps		79,466			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		—		15,770			—		—
Interest rate futures		2,368			2,368		2,368		—			—		—
Equity futures		168			168		168		—			—		—
Derivative assets total		108,142			106,371		2,536		105,606			—		—
Policy loans		130,605			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		—		410			—		—
Interest rate futures		141			141		141		—			—		—
Equity futures		458			458		458		—			—		—
Derivative liabilities total		52,675			64,073		599		52,076			—		—
Payable for securities lending		319,971			319,971		—		319,971			—
Payable for derivative cash collateral		61,144			61,144		—		61,144			—		—
Separate account annuity liabilities		20,647,404			20,651,888		—		18,109,336			2,538,068		—

30

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following tables provides information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2019 and 2018:

	2019
	Level 1		Level 2		Level 3		Net Asset Value (NAV)		Total
Assets:
Bonds
Industrial and miscellaneous	$	—	$	2,415	$	1,089	$	—	$	3,504
Total bonds		—		2,415		1,089		—		3,504
Common stock
Industrial and miscellaneous	$	1,209	$	—	$	2,554	$	—	$	3,763
Total common stock		1,209		—		2,554		—		3,763
Cash equivalents and short-term
Money market mutual funds	$	229,488	$	—	$	—	$	—	$	229,488
Total short-term investments		229,488		—		—		—		229,488
Securities lending reinvested collateral		5,000		—		—		—		5,000
Derivative assets		180		108,408		—		—		108,588
Separate account assets		21,367,757		511,156		—		—		21,878,913
Total assets	$	21,603,634	$	621,979	$	3,643	$	—	$	22,229,256
Liabilities:
Derivative liabilities	$	4,395	$	80,968	$	—	$	—	$	85,363
Total liabilities	$	4,395	$	80,968	$	—	$	—	$	85,363
	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
Money market 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

31

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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.

The following tables summarize the changes in assets classified as Level 3 for 2019 and 2018:

	Beginning Balance at January 1, 2019		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	$	1,060	$	1,958	$	1,902	$	4		$	132
Common stock		1,115		—		1,216		(217	)		12
Total	$	2,175	$	1,958	$	3,118	$	(213	)	$	144

	Purchases		Issuances		Sales		Settlements		Ending Balance at December 31, 2019
Bonds
Other	$	38	$	—	$	—	$	201	$	1,089
Common stock		1,877		983		—		—		2,554
Total	$	1,915	$	983	$	—	$	201	$	3,643

(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

	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
Other	$	1,302	$	1,885	$	1,891	$	6		$	(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

(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

Nonrecurring fair value measurements

As of December 31, 2019 and 2018, the Company held no property as held for sale.

32

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, 2019
Bonds
United States Government and agencies	$	474,098	$	122,202	$	91	$	596,209
State, municipal and other government		96,650		14,187		236		110,601
Hybrid securities		89,504		4,007		5,282		88,229
Industrial and miscellaneous		3,649,543		322,781		23,417		3,948,907
Mortgage and other asset-backed securities		1,022,963		62,037		1,437		1,083,563
Total unaffiliated bonds		5,332,758		525,214		30,463		5,827,509
Unaffiliated preferred stocks		4,552		221		14		4,759
	$	5,337,310	$	525,435	$	30,477	$	5,832,268
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Unaffiliated common stocks	$	3,758	$	37	$	32	$	3,763
	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 unaffiliated bonds		5,648,863		213,400		150,335		5,711,928
Unaffiliated preferred stocks		4,552		45		306		4,291
	$	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

33

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, 2019, 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.

	2019
December 31:	Carrying Value		Fair Value
Due in one year or less	$	276,952	$	278,962
Due after one year through five years		1,379,971		1,443,349
Due after five years through ten years		840,362		909,109
Due after ten years		1,812,510		2,112,526
		4,309,795		4,743,946
Mortgage and other asset-backed securities		1,022,963		1,083,563
Total	$	5,332,758	$	5,827,509

The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2019 and 2018 is as follows:

	2019
	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	$	235	$	2	$	1,149	$	89
State, municipal and other government		665		236		—		—
Hybrid securities		45,378		5,282		—		—
Industrial and miscellaneous		153,661		18,928		151,220		4,490
Mortgage and other asset-backed securities		18,936		468		89,503		969
Total bonds		218,875		24,916		241,872		5,548
Preferred stocks-unaffiliated		—		—		2,010		14
Common stocks-unaffiliated		—		—		406		32
	$	218,875	$	24,916	$	244,288	$	5,594

	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		82
	$	544,561	$	56,161	$	2,150,191	$	94,480

34

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

There were $2,799 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, 2019. During 2018 and 2017, 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 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 2019, 2018 and 2017 the Company recognized OTTI of $209, $485 and $57, respectively.

The following loan-backed and structured securities were held at December 31, 2019, 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	$	2,799	$	2,591	$	208	$	2,591	$	2,591		6/30/2019
81744FFD4		1		—		1		—		0		6/30/2019
					$	209

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, 2019 and 2018 is as follows:

	2019				2018
	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	$	468	$	1,089	$	4,803	$	6,066
The aggregate related fair value of securities with unrealized losses	$	18,936		90,592		140,189		295,276

At December 31, 2019 and 2018, 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 55 and 138 securities with a carrying amount of $243,791 and $600,722 and an unrealized loss of $24,916 and $56,160. Of this portfolio, 61.2% and 83.0% were investment grade with associated unrealized losses of $9,288 and $38,408, respectively.

At December 31, 2019 and 2018, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 64 and 643 securities with a carrying amount of $249,444 and $ 2,244,673 and an unrealized loss of $5,562 and $94,480. Of this portfolio, 87.7% and 85.1% were investment grade with associated unrealized losses of $3,622 and $68,171, respectively.

35

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2019 and 2018, the Company did not hold any common stocks that have been in a continuous loss position for greater than or equal to twelve months.

At December 31, 2019 for common stocks that have been in a continuous loss position for less than twelve months, the Company held 1 security with a carrying amount of $438 and an unrealized loss of $32. At December 31, 2018, the Company did not hold any common stocks that have been in a continuous loss position for less than twelve months.

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, 2019
Bond, amortized cost		2	$	3,736	$	3,364
Loan-backed and structured securities, amortized cost		2		4,296		4,296
Total		4	$	8,032	$	7,660
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

During 2019 and 2018, the Company sold, redeemed or otherwise disposed of 71 and 64 securities as a result of a callable feature which generated investment income of $4,159 and $4,910 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
	2019			2018			2017
Proceeds	$	1,575,257		$	1,047,071		$	1,397,425
Gross realized gains	$	10,130		$	2,342		$	44,204
Gross realized losses		(5,942	)		(26,053	)		(6,295	)
Net realized capital gains (losses)	$	4,188		$	(23,711	)	$	37,909

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, 2019, 2018 and 2017 of $10,744, $1,038, and $2,840 respectively.

36

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2019 and 2018, the Company had no recorded investment in restructured securities. There were no capital gains (losses) taken as a direct result of restructures in 2019, 2018 and 2017.

Mortgage Loans

The credit quality of mortgage loans by type of property for the years ended December 31, 2019 and 2018 was as follows:

December 31, 2019

	Farm		Commercial		Total
AAA - AA	$	—	$	847,516	$	847,516
A		9,890		642,006		651,896
BBB		—		43,190		43,190
BB		—		3,908		3,908
	$	9,890	$	1,536,620	$	1,546,510

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

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 2019 the Company issued mortgage loans with a maximum interest rate of 5.35% 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, 2019 at the time of origination or acquisitions was 70%. During 2018 the Company issued mortgage loans with a maximum interest rate of 5.54%, and a minimum interest rate of 4.02% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated during the year ending December 31, 2018 at the time of origination was 74%.

37

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

During 2019 and 2018, the Company did not reduce the interest rate on any outstanding mortgage loan. During 2019 and 2018, the Company issued no farm 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, 2019 and 2018.

			Commercial
December 31, 2019	Farm		Insured		All Other		Total
Recorded Investment (All)
(a) Current	$	9,890	$	—	$	1,536,620	$	1,546,510
(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	$	9,890	$	—	$	617,094	$	626,984

			Commercial
December 31, 2018	Farm		Insured		All Other		Total
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

There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2019 and 2018, respectively, that were subject to participant or co-lender mortgage loan agreement for which the Company is restricted from unilaterally foreclosing on the mortgage loans.

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.

No mortgage loan foreclosures occurred during 2019, 2018 and 2017. At December 31, 2019 and 2018, the Company held a mortgage loan loss reserve in the AVR of $16,524 and $14,587, respectively.

38

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
	2019			2018				2019			2018
South Atlantic		26	%		26	%	Apartment		49	%		53	%
Pacific		25			24		Retail		18			16
Middle Atlantic		14			12		Industrial		15			14
Mountain		9			10		Office		11			10
E. North Central		8			8		Other		3			3
W. South Central		7			8		Medical		3			3
W. North Central		6			7		Agricultural		1			1
E. South Central		4			4
New England		1			1

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.

During 2019, no properties were disposed of and there were no impairment losses recorded.

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. The Company subsequently disposed of the property during the fourth quarter of 2018, resulting in a realized loss of $1,205.

During 2017, no properties were disposed of and there were no impairment losses recorded.

Other Invested Assets

During 2019, 2018 and 2017, the Company recognized no impairment write downs for its investments in joint ventures and limited partnerships.

Tax Credits

At December 31, 2019, the Company had ownership interest in nine LIHTC investments with a carrying value of $85,230. The remaining years of unexpired tax credits ranged from five to ten and the properties were not subject to regulatory review. The length of time remaining for the holding periods ranged from one to fifteen years. The amount of contingent equity commitments expected to be paid during the years 2020 to 2022 is $104,437. Tax credits recognized in 2019 were $ 25,461, and other tax benefits recognized in 2019 were $5,256. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

39

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2018, the Company had ownership interest in ten LIHTC investments with a carrying value of $ 63,256. 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. Tax credits recognized in 2018 were $ 16,993, and other tax benefits recognized in 2018 were $5,163. 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.

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.

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, 2019 and 2018 was as follows:

	2019			2018
Fair value—positive	$	121,858		$	110,369
Fair value—negative		(96,025	)		(54,903	)

For the years ended December 31, 2019, 2018 and 2017, the Company recorded unrealized gains (losses) of $23,225, $48,698 and $29,880, 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 2019, 2018 or 2017 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

Summary of realized gains (losses) by derivative type for the years ended December 31, 2019, 2018 and 2017:

	2019			2018			2017
Swaps:
Interest rate	$	316		$	(25,855	)	$	(15,334	)
Credit		(321	)		(1,240	)		—
Total return		(42,233	)		(6,871	)		(70,474	)
Total swaps	$	(42,238	)	$	(33,966	)	$	(85,808	)
Futures—net positions		66,497			(3,690	)		13,675
Lehman settlements		13			47			104
Total realized gains (losses)	$	24,272		$	(37,609	)	$	(72,029	)

40

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The average estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2019 and 2018:

	Asset(1)				Liability(1)
	2019		2018		2019			2018
Derivative component of RSATs
Credit default swaps	$	7,281	$	7,726	$	(2,122	)	$	(1,590	)
Interest rate swaps		—		—		—			—

⁽¹⁾  Asset and liability classification is based on the positive (asset) or negative (liability) book/adjusted carrying value of each derivative.

The estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2019 and 2018:

	Asset(1)				Liability(1)
	2019		2018		2019			2018
Derivative component of RSATs
Credit default swaps	$	7,469	$	6,361	$	(2,673	)	$	(340	)
Interest rate swaps		—		—		—			—
Total	$	7,469	$	6,361	$	(2,673	)	$	(340	)

⁽¹⁾  Asset and liability classification is based on the positive (asset) or negative (liability) book/adjusted carrying value of each derivative.

The net realized gains (losses) on the derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2019, 2018 and 2017:

	2019			2018			2017
Derivative component of RSATs
Credit default swaps	$	(321	)	$	(1,240	)	$	—
Interest rate swaps		—			—			—
Total	$	(321	)	$	(1,240	)	$	—

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.

41

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, 2019 and 2018:

		2019
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)		$	1,560		$	114,800		1.5
Credit default swaps referencing indices			13			20,000		41.7
Subtotal			1,573			134,800		7.5
BBB	2
Single name credit default swaps (3)			5,869			244,105		2.1
Credit default swaps referencing indices			2,707			124,500		3.3
Subtotal			8,576			368,605		2.5
BB	3
Single name credit default swaps (3)			(6	)		6,650		0.7
Subtotal			(6	)		6,650		0.7
Total		$	10,143		$	510,055		3.8

(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.

42

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

		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)		$	1,849		$	121,465		2.5
Subtotal			1,849			121,465		2.5
BBB	2
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
BB	3
Single name credit default swaps (3)			(28	)		13,050		1.2
Subtotal			(28	)		13,050		1.2
B	4
Single name credit default swaps (3)			(487	)		2,500		3.5
Subtotal			(487	)		2,500		3.5
Total		$	6,700		$	508,455		2.9

(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.

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, 2019, the maximum amounts of potential future recoveries available to offset the $510,055 from the table above was $0.

43

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2019 and 2018, 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
	2019		2018		2019			2018
Derivative assets:
Credit default swaps	$	261,500	$	271,000	$	7,469		$	6,361
Currency swaps		19,757		46,958		2,883			4,009
Equity futures		—		—		180			168
Equity swaps		2,593		259,244		69			15,770
Interest rate futures		—		4		—			2,368
Interest rate swaps		2,100,050		1,735,499		108,340			79,466
Derivative liabilities:
Credit default swaps		248,555		237,455		(2,673	)		(340	)
Currency swaps		68,247		31,607		1,037			2,391
Equity futures		—		—		261			458
Equity swaps		329,736		4,229		14,576			410
Interest rate futures		7		—		4,135			141
Interest rate swaps		1,402,069		1,463,319		75,773			49,615

* 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, 2019 and 2018, respectively:

	Gross Restricted (Admitted & Nonadmitted) 2019
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	$	311,367	$	—	$	—	$	—	$	311,367
Subject to dollar repurchase agreements		66,227		—		—		—		66,227
FHLB capital stock		2,554		—		—		—		2,554
On deposit with states		2,854		—		—		—		2,854
Pledged as collateral not captured in other categories		58,995		—		—		—		58,995
Total Restricted Assets	$	441,997	$	—	$	—	$	—	$	441,997

	Gross (Admitted & Nonadmitted) Restricted									Percentage
Restricted Asset Category	Total From Prior Year (2018)		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	$	319,246	$	(7,879	)	$	—	$	311,367		0.97	%		0.98	%
Subject to dollar repurchase agreements		—		66,227			—		66,227		0.21	%		0.21	%
FHLB capital stock		1,115		1,439			—		2,554		0.01	%		0.01	%
On deposit with states		2,910		(56	)		—		2,854		0.01	%		0.01	%
Pledged as collateral not captured in other categories		59,054		(59	)		—		58,995		0.18	%		0.18	%
Total Restricted Assets	$	382,325	$	59,672		$	—	$	441,997		1.38	%		1.39	%

44

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, 2019 and 2018, respectively:

	Gross (Admitted & Nonadmitted) Restricted 2019
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	$	58,995	$	—	$	—	$	—	$	58,995
Total	$	58,995	$	—	$	—	$	—	$	58,995

	Gross (Admitted & Nonadmitted) Restricted							Percentage
Description of Assets	Total From Prior Year (2018)		Increase/ (Decrease)			Total Current Year Admitted Restricted		Gross (Admitted & Nonadmitted) Restricted to Total Assets			Admitted Restricted to Total Admitted Assets
Derivatives	$	59,054	$	(59	)	$	58,995		0.18	%		0.18	%
Total	$	59,054	$	(59	)	$	58,995		0.18	%		0.18	%

The following tables show the collateral received and reflected as assets within the financial statements as of December 31, 2019 and 2018:

December 31, 2019

Collateral Assets	Carrying Value		Fair Value		% of CV to Total Assets (Admitted and Nonadmitted)			% of CV to Total Admitted Assets
Cash	$	124,968	$	124,968		1.48	%		1.49	%
Securities lending collateral assets		311,367		311,367		3.69			3.71
Other		1,246		1,246		0.01			0.01
Total collateral assets	$	437,581	$	437,581		5.18	%		5.21	%

	Amount	% of Liability to Total Liabilities
	$437,753		5.95	%
Recognized Obligation to return collateral asset

45

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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	$	60,144		0.71	%		0.71
Securities lending collateral assets		319,971		319,971		3.78			3.80
Other		1,000		1,000		0.01			0.01
Total	$	381,115	$	381,115		4.50	%		4.53

	Amount		% of Liability to Total Liabilities
Recognized Obligation to return collateral asset	$	381,115		5.21	%

Net Investment Income

Detail of net investment income is presented below:

	Year Ended December 31
	2019			2018			2017
Income:
Bonds	$	258,609		$	269,581		$	289,465
Preferred stocks		274			243			200
Common stocks		102			—			—
Mortgage loans on real estate		66,761			58,296			56,300
Policy loans		7,708			7,631			6,910
Cash, cash equivalents and short-term investments		7,289			5,267			4,581
Derivatives		23,152			23,075			22,232
Other invested assets		(4,446	)		(5,079	)		4,140
Gross investment income		359,449			359,014			383,828
Less: investment expenses		19,742			19,356			23,021
Net investment income before amortization of IMR		339,707			339,658			360,807
Amortization of IMR		4,630			7,577			10,927
Net investment income	$	344,337		$	347,235		$	371,734

46

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
	2019			2018			2017
Bonds	$	(6,556	)	$	(21,349	)	$	35,069
Common stocks		(216	)		—			(63	)
Mortgage loans on real estate		—			(54	)		968
Real estate		—			(3,631	)		—
Cash, cash equivalents and short-term investments		8			(18	)		(12	)
Derivatives		24,259			(37,656	)		(72,133	)
Other invested assets		4,207			8,386			6,744
Change in realized capital gains (losses), before taxes		21,702			(54,322	)		(29,427	)
Federal income tax effect		(1,772	)		7,004			(13,315	)
Transfer from (to) interest maintenance reserve		(2,735	)		17,142			(28,197	)
Net realized capital gains (losses) on investments	$	17,195		$	(30,176	)	$	(70,939	)

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
	2019			2018			2017
Bonds	$	6,029		$	(3,714	)	$	7,788
Common stocks		5			—			—
Affiliated entities		(92	)		634			(182	)
Cash equivalents and short-term investments		8			14			(11	)
Derivatives		(30,264	)		20,814			33,650
Other invested assets		5,453			(4,918	)		5,015
Change in unrealized capital gains (losses), before taxes		(18,861	)		12,830			46,260
Taxes on unrealized capital gains (losses)		(513	)		559			(2,210	)
Change in unrealized capital gains (losses), net of tax	$	(19,374	)	$	13,389		$	44,050

47

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, 2019 and 2018 were as follows:

	2019				2018
	Gross		Net of Loading		Gross		Net of Loading
Life and annuity:
Ordinary first-year business	$	162	$	22	$	116	$	20
Ordinary renewal business		4,670		3,906		4,710		3,898
Group life direct business		213		152		235		170
Credit direct business		8		8		20		20
	$	5,053	$	4,088	$	5,081	$	4,108

7. Policy and Contract Attributes

Insurance Liabilities

Policy reserves, deposit-type contracts and policy claims at December 31, 2019 and 2018 were as follows:

	Year Ended December 31
	2019		2018
Life insurance reserves	$	1,307,541	$	1,195,740
Annuity reserves and supplementary contracts with life contingencies		4,924,134		5,236,604
Accident and health reserves (including long term care)		261,687		207,230
Total policy reserves	$	6,493,362	$	6,639,574
Deposit-type contracts		29,577		29,504
Policy claims		29,249		41,237
Total policy reserves, deposit-type contracts and claim liabilities	$	6,552,188	$	6,710,315

Life Insurance Reserves

The aggregate policy reserves for life insurance policies are based upon the 1941, 1958, 1980, 2001 and 2017 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.

48

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.

As of December 31, 2019 and 2018, the Company had insurance in force aggregating $7,461,830 and $6,838,334, 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 $1,049,584 and $1,758,084 to cover these deficiencies as of December 31, 2019 and 2018, respectively.

The Company does not issue participating life insurance policies.

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 2.50 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 of Insurance or Managed Care Contracts. 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 Actuarial Guideline XLIII (AG 43). AG 43 specifies statutory reserve requirements for variable annuity contracts with benefit guarantees (VACARVM) and without benefit guarantees and related products. The AG 43 reserve calculation includes variable annuity products issued after January 1, 1981. Examples of covered guaranteed benefits include guaranteed minimum accumulation benefits, return of premium death benefits, guaranteed minimum income benefits, guaranteed minimum withdrawal benefits and guaranteed payout annuity floors. The aggregate reserve for contracts falling within the scope of AG 43 is equal to the conditional tail expectation (CTE) amount, but not less than the standard scenario amount (SSA).

49

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) and the Society of Actuaries and prudent estimate assumptions based on Company experience. The SSA was determined using the assumptions and methodology prescribed in AG 43 for determining the SSA.

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.

At December 31, 2019 and 2018, the Company had no premium deficiency reserve related to accident and health policies.

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, 2019
2019	$	—	$	48,863		$	33,089		15,774
2018 and prior		31,676		(7,829	)		19,549		4,298
		31,676	$	41,034		$	52,638		20,072
Active life reserve	$	196,895						$	255,224
Total accident and health reserves	$	228,571						$	275,296

	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

50

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company’s unpaid claims reserve was decreased by $7,829 and $4,909 for the years ended December 31, 2019 and 2018, respectively, for health claims that were incurred prior to those balance sheet dates. The change in 2019 and 2018 resulted primarily from variances in the estimated frequency of claims and claim severity.

Activity in the liability for unpaid claims adjustment expense is summarized as follows:

	Liability Beginning of Year		Incurred			Paid		Liability End of Year
Year ended December 31, 2019
2019	$	—	$	510		$	356	$	154
2018 and prior		647		(318	)		287		42
	$	647	$	192		$	643	$	196
Year ended December 31, 2018
2018	$	—	$	818		$	290	$	528
2017 and prior		629		(262	)		248		119
	$	629	$	556		$	538	$	647

The Company did not increase or decrease the claim adjustment expense provision for insured events of prior years during 2019.

Deposit-type Contracts

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

51

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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, deposit fund and life 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 2019
Individual Annuities:	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	—	$	23,111	$	—	$	23,111		1	%
At book value less surrender charge of 5% or more		20,692		—		—		20,692		1
At fair value		14,840		—		4,807,481		4,822,321		82
Total with adjustment or at fair value		35,532		23,111		4,807,481		4,866,124		84
At book value without adjustment (minimal or no charge or adjustment)		796,656		—		—		796,656		14
Not subject to discretionary withdrawal provision		128,893		—		5,493		134,386		2
Total individual annuity reserves		961,081		23,111		4,812,974		5,797,166		100	%
Less reinsurance ceded		146		—		—		146
Net individual annuity reserves	$	960,935	$	23,111	$	4,812,974	$	5,797,020
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		—		—		—		—

	December 31 2019
Group Annuities:	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	695,382	$	26,578	$	—	$	721,960		3	%
At book value less surrender charge of 5% or more		676,550		—		—		676,550		3
At fair value		3		346,312		15,569,485		15,915,800		72
Total with adjustment or at fair value		1,371,935		372,890		15,569,485		17,314,310		78
At book value without adjustment (minimal or no charge or adjustment)		2,053,227		66,718		—		2,119,945		10
Not subject to discretionary withdrawal provision		528,414		1,098,217		1,115,244		2,741,875		12
Total group annuity reserves		3,953,576		1,537,825		16,684,729		22,176,130		100	%
Less reinsurance ceded		38		—		—		38
Net group annuity reserves	$	3,953,538	$	1,537,825	$	16,684,729	$	22,176,092
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		—		—		—		—

52

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31 2019
Deposit-type contracts (no life contingencies):	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	—	$	—	$	—	$	—		0	%
At book value less surrender charge of 5% or more		—		—		—		—		0
At fair value		—		—		—		—		0
Total with adjustment or at fair value		—		—		—		—		0
At book value without adjustment (minimal or no charge or adjustment)		—		—		—		—		0
Not subject to discretionary withdrawal provision		26,318		—		67		26,385		100
Total deposit-type contracts		26,318		—		67		26,385		100	%
Less reinsurance ceded		—		—		—		—
Net deposit-type contracts	$	26,318	$	—	$	67	$	26,385
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		—		—		—		—

Reconcililation to the Annual Statement:	Amount
Life & Accident & Health Annual Statement:
Exhibit 5, Annuities section, total (net)	$	4,866,303
Exhibit 5, Supp contracts with life contingencies section, total (net)		44,911
Exhibit 7, Deposit-type contracts, net balance at the end of the current year after reinsurance		29,577
Subtotal		4,940,791
Separate Accounts Annual Statement:
Exhibit 3, Annuities section, total		23,052,159
Exhibit 3, Supp contracts with life contingencies section, total		6,480
Policyholder dividend and coupon accumulations		—
Policyholder premiums		—
Guaranteed interest contracts		—
Other contract deposit funds		67
Subtotal		23,058,706
Combined total	$	27,999,497

53

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31 2018
Individual Annuities:	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	—	$	25,101	$	—	$	25,101		1	%
At book value less surrender charge of 5% or more		9,932		—		—		9,932		1
At fair value		21,020		—		4,153,346		4,174,366		80
Total with adjustment or at fair value		30,952		25,101		4,153,346		4,209,399		82
At book value without adjustment (minimal or no charge or adjustment)		884,224		—		—		884,224		16
Not subject to discretionary withdrawal provision		84,389		—		4,423		88,812		2
Total individual annuity reserves		999,565		25,101		4,157,769		5,182,435		100	%
Less reinsurance ceded		271		—		—		271
Net individual annuity reserves	$	999,294	$	25,101	$	4,157,769	$	5,182,164
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		—		—		—		—

	December 31 2018
Group Annuities:	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	688,335	$	50,908	$	—	$	739,243		4	%
At book value less surrender charge of 5% or more		777,508		31,986		—		809,494		4
At fair value		2		380,808		12,811,582		13,192,392		63
Total with adjustment or at fair value		1,465,845		463,702		12,811,582		14,741,129		71
At book value without adjustment (minimal or no charge or adjustment)		2,207,009		44,431		—		2,251,440		11
Not subject to discretionary withdrawal provision		552,779		2,034,396		1,114,874		3,702,049		18
Total group annuity reserves		4,225,633		2,542,529		13,926,456		20,694,618		100	%
Less reinsurance ceded		85		—		—		85
Net group annuity reserves	$	4,225,548	$	2,542,529	$	13,926,456	$	20,694,533
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		—		—		—		—

54

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31 2018
	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Deposit-type contracts (no life contingencies):
Subject to discretionary withdrawal with adjustment:
With fair value adjustment	$	—	$	—	$	—	$	—		0	%
At book value less surrender charge of 5% or more		—		—		—		—		0
At fair value		—		—		—		—		0
Total with adjustment or at fair value		—		—		—		—		0
At book value without adjustment (minimal or no charge or adjustment)		—		—		—		—		0
Not subject to discretionary withdrawal provision		23,571		—		33		23,604		100
Total deposit-type contracts		23,571		—		33		23,604		100	%
Less reinsurance ceded		—		—		—		—
Net deposit-type contracts	$	23,571	$	—	$	33	$	23,604
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date		—		—		—		—

	Amount
Reconcililation to the Annual Statement:
Life & Accident & Health Annual Statement:
Exhibit 5, Annuities section, total (net)	$	5,179,432
Exhibit 5, Supp contracts with life contingencies section, total (net)		39,172
Exhibit 7, Deposit-type contracts, net balance at the end of the current year after reinsurance		29,504
Subtotal		5,248,108
Separate Accounts Annual Statement:
Exhibit 3, Annuities section, total		20,647,130
Exhibit 3, Supp contracts with life contingencies section, total		5,030
Policyholder dividend and coupon accumulations		—
Policyholder premiums		—
Guaranteed interest contracts		—
Other contract deposit funds		33
Subtotal		20,652,193
Combined total	$	25,900,301

55

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The amount of reserves on life products by withdrawal characteristics is summarized as follows:

	December 31 2019
	General Account						Separate Account - Guaranteed and Nonguaranteed
	Account Value		Cash Value		Reserve		Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Term Policies with Cash Value	$	416	$	879	$	1,932	$	—	$	—	$	—
Universal Life		601,932		558,768		626,439		—		—		—
Universal Life with Secondary Guarantees		42,675		44,427		115,118		—		—		—
Indexed Universal Life with Secondary guarantees		284,726		205,484		265,375		—		—		—
Other Permanent Cash Value Life		25,460		64,803		81,816		—		—		—
insurance
Variable Universal Life		20,066		19,320		62,774		126,374		124,008		270,165
Not Subject to discretionary withdrawal or no cash values
Term Policies without Cash Value		—		—		255,648		—		—		—
Accidental Death Benefits		—		—		697		—		—		—
Disability—Active Lives		—		—		1,414		—		—		—
Disability—Disabled Lives		—		—		3,377		—		—		—
Miscellaneous Reserves		—		—		92,678		—		—		—
Total (gross)		975,275		893,681		1,507,268		126,374		124,008		270,165
Reinsurance Ceded		163,531		163,531		199,727		—		—		—
Total (net)	$	811,744	$	730,150	$	1,307,541	$	126,374	$	124,008	$	270,165

	Amount
Reconciliation to the Annual Statement:
Life & Accident & Health Annual Statement:
Exhibit 5, Life insurance section, total (net)	$	1,209,682
Exhibit 5, Accidental death benefits section total (net)		697
Exhibit 5, Disability—active lives section, total (net)		1,370
Exhibit 5, Disability—disabled lives section, total (net)		3,114
Exhibit 5, Miscellaneous reserves section, total (net)		105,598
Subtotal		1,320,461
Separate Accounts Annual Statement:
Exhibit 3, Life insurance section, total		270,165
Subtotal		270,165
Combined total	$	1,590,626

56

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

	December 31 2018
	General Account						Separate Account - Guaranteed and Nonguaranteed
	Account Value		Cash Value		Reserve		Account Value		Cash Value		Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:
Term Policies with Cash Value	$	—	$	506	$	1,265	$	—	$	—	$	—
Universal Life		587,001		542,521		601,476		—		—		—
Universal Life with Secondary Guarantees		45,671		45,191		114,460		—		—		—
Indexed Universal Life with Secondary guarantees		239,279		164,683		217,485		—		—		—
Other Permanent Cash Value Life insurance		23,478		65,125		84,040		—		—		—
Variable Universal Life		19,197		18,290		66,095		103,915		100,823		229,388
Not Subject to discretionary withdrawal or no cash values
Term Policies without Cash Value		—		—		239,716		—		—		—
Accidental Death Benefits		—		—		764		—		—		—
Disability—Active Lives		—		—		1,273		—		—		—
Disability—Disabled Lives		—		—		3,371		—		—		—
Miscellaneous Reserves		—		—		61,939		—		—		—
Total (gross)		914,626		836,316		1,391,884		103,915		100,823		229,388
Reinsurance Ceded		160,123		160,123		196,448		—		—		—
Total (net)	$	754,503	$	676,193	$	1,195,436	$	103,915	$	100,823	$	229,388

	Amount
Reconciliation to the Annual Statement:
Life & Accident & Health Annual Statement:
Exhibit 5, Life insurance section, total (net)	$	1,128,443
Exhibit 5, Accidental death benefits section total (net)		764
Exhibit 5, Disability—active lives section, total (net)		1,230
Exhibit 5, Disability—disabled lives section, total (net)		3,106
Exhibit 5, Miscellaneous reserves section, total (net)		80,197
Subtotal		1,213,740
Separate Accounts Annual Statement:
Exhibit 3, Life insurance section, total		229,388
Subtotal		229,388
Combined total	$	1,443,128

57

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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, 2019, 2018 and 2017 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, 2019		$419,863		$3,964,987	$	4,384,850
Reserves for separate acccounts as of December 31, 2019 with assets at:
Fair Value	$	—	$	21,767,934	$	21,767,934
Amortized Cost		1,560,936		—		1,560,936
Total as of December 31, 2019	$	1,560,936	$	21,767,934	$	23,328,870
Reserves for separate accounts by withdrawal characteristics as of December 31, 2019:
With MV adjustment	$	49,689	$	—	$	49,689
At book value without fair value adjustment and with current surrender charge of 5% or more
At fair value		346,312		20,647,131		20,993,443
At book value without fair value adjustment and with current surrender charge of less than 5%		66,718		—		66,718
Subtotal		462,719		20,647,131		21,109,850
Not subject to discretionary withdrawal		1,098,217		1,120,803		2,219,020
Total separate account reserves at December 31, 2019	$	1,560,936		21,767,934	$	23,328,870

58

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, 2018	$	811,589	$	3,513,409	$	4,324,998
Reserves for separate acccounts as of December 31, 2018 with assets at:
Fair value	$	—	$	18,313,645	$	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

	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	$	3,207,407	$	4,317,934
Reserves for separate acccounts 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

59

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
	2019			2018			2017
Transfer as reported in the summary of operations of the separate accounts statement:
Transfers to separate accounts	$	4,584,792		$	4,533,285		$	4,478,824
Transfers from separate accounts		(5,789,391	)		(7,439,380	)		(4,912,589	)
Net transfers to separate accounts		(1,204,599	)		(2,906,095	)		(433,765	)
Miscellaneous reconciling adjustments		3,689			14,160			9,916
Net transfers as reported in the summary of operations of the life, accident and health annual statement	$	(1,200,910	)	$	(2,891,935	)	$	(423,849	)

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 general account claims at December 31, 2019 and 2018 are attributed to the following products:

	2019		2018
Variable life	$	147,403	$	234,854
Variable universal life		126,374		—
Variable annuities		5,167,668		4,486,780
Group annuities		13,336,993		10,821,405
Registered market value separate accounts		755,366		669,531
Non-registered market value separate accounts		900,551		778,969
Par annuities		1,442,972		1,440,469
Registered market value annuity product—SPL		2,499		2,032
Book value separate accounts		1,620,081		2,609,935
Total separate account assets	$	23,499,907	$	21,043,975

At December 31, 2019 and 2018, the Company held separate account assets not legally insulated from the general account in the amount of $24,081 and $25,895, 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 $50,669, $50,888, $48,314, $46,668, and $42,677 to the general account in 2019, 2018, 2017, 2016, and 2015, respectively. During the years ended December 31, 2019, 2018, 2017, 2016, and 2015 the general account of the Company had paid $827, $615, $1,009, $1,627, and $1,671 respectively, toward separate account guarantees.

60

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2019 and 2018, the Company reported guaranteed separate account assets at amortized cost in the amount of $1,620,081 and $2,609,935, respectively, based upon the prescribed practice granted by the State of New York as described in Note 2. These assets had a fair value of $1,633,649 and $2,558,199 at December 31, 2019 and 2018, respectively, which would have resulted in an unrealized gain/(loss) of $13,568 and ($51,735), 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.

Premiums and annuity considerations include the following reinsurance amounts:

	Year Ended December 31
	2019			2018			2017
Direct premiums	$	5,332,515		$	5,218,708		$	5,079,996
Reinsurance assumed—non affiliates		362,489			446,450			520,633
Reinsurance assumed—affiliates		17			18			34
Reinsurance ceded—non affiliates		(243,336	)		(300,323	)		(668,328	)
Reinsurance ceded—affiliates		(145,732	)		(162,384	)		(198,406	)
Net premiums earned	$	5,305,953		$	5,202,469		$	4,733,929

61

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company received reinsurance recoveries in the amounts of $418,025, $390,435 and $491,641 during 2019, 2018 and 2017, respectively. At December 31, 2019 and 2018, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $185,454 and $209,583, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2019 and 2018 of $3,088,694 and $4,117,520, respectively, of which $1,767,518 and $1,830,363 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.

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 statements of operations.

During 2019, 2018 and 2017, amortization of deferred gains associated with previously transacted reinsurance agreements was released into income in the amount of $346,651 ($225,323 after tax), $31,034 ($20,172 after tax) and $109,532 ($71,196 after tax), respectively.

62

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

9. Income Taxes

The net deferred income tax asset at December 31, 2019 and 2018 and the change from the prior year are comprised of the following components:

	December 31, 2019
	Ordinary		Capital			Total
Gross Deferred Tax Assets	$	96,746	$	9,833		$	106,579
Statutory Valuation Allowance Adjustment		—		—			—
Adjusted Gross Deferred Tax Assets		96,746		9,833			106,579
Deferred Tax Assets Nonadmitted		45,104		—			45,104
Subtotal (Net Deferred Tax Assets)		51,642		9,833			61,475
Deferred Tax Liabilities		20,380		13,045			33,425
Net Admitted Deferred Tax Assets	$	31,262	$	(3,212	)	$	28,050

	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

	Change
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	15,085		$	(213	)	$	14,872
Statutory Valuation Allowance Adjustment		—			—			—
Adjusted Gross Deferred Tax Assets		15,085			(213	)		14,872
Deferred Tax Assets Nonadmitted		14,233			—			14,233
Subtotal (Net Deferred Tax Assets)		852			(213	)		639
Deferred Tax Liabilities		(3,680	)		3,624			(56	)
Net Admitted Deferred Tax Assets	$	4,532		$	(3,837	)	$	695

63

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
	2019		2018		Change
Deferred Tax Assets:
Ordinary
Policyholder reserves	$	69,535	$	56,673	$	12,862
Investments		1,065		1,355		(290	)
Deferred acquisition costs		21,330		18,825		2,505
Compensation and benefits accrual		693		832		(139	)
Receivables—nonadmitted		1,247		1,199		48
Other (including items <5% of total ordinary tax assets)		2,876		2,777		99
Subtotal		96,746		81,661		15,085
Nonadmitted		45,104		30,871		14,233
Admitted ordinary deferred tax assets		51,642		50,790		852
Capital:
Investments		9,833		10,046		(213	)
Admitted deferred tax assets	$	61,475	$	60,836	$	639
Deferred Tax Liabilities:
Ordinary
Investments	$	556	$	432	$	124
Policyholder reserves		15,942		19,305		(3,363	)
Capitalized Ceding Commissions		3,621		4,323		(702	)
Other		261		—		261
Subtotal		20,380		24,060		(3,680	)
Capital
Investments		13,045		9,421		3,624
Deferred tax liabilities		33,425		33,481		(56	)
Net deferred tax assets/liabilities	$	28,050	$	27,355	$	695

As a result of the 2017 Tax Cuts and Jobs Act (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 remaining amortizable balance is included within the Policyholder Reserves line items above.

64

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

As discussed in Note 2, for the years ended December 31, 2019 and 2018 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, 2019
	Ordinary		Capital		Total
Admission Calculation Components SSAP No. 101
2(a)  Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	—	$	4,471	$	4,471
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)		23,579		—		23,579
1.  Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		23,579		—		23,579
2.  Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		148,488
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		28,063		5,362		33,425
2(d)  Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	51,642	$	9,833	$	61,475

	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	$	4,122
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)		23,234		—		23,234
1.  Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		23,234		—		23,234
2.  Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		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

65

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

		Ordinary		Change Capital			Total
Admission Calculation Components SSAP No. 101
2(a)	Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	—	$	349		$	349
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)		345		—			345
	1.  Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		345		—			345
	2.  Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX			(10,985	)
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		507		(562	)		(55	)
2(d)	Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	852	$	(213	)	$	639

	December 31
	2019			2018	Change
Ratio Percentage Used To Determine Recovery Period and Threshold Limitation Amount		1093	%	1191%	-98%
Amount of Adjusted Capital and Surplus Used To Determine Recovery Period and Threshold Limitation in 2(b)2 Above	$	996,450		$1,063,153	$(66,703)

66

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The impact of tax planning strategies at December 31, 2019 and 2018 was as follows:

	December 31, 2019
	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)		33	%		0	%		28	%

	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	%

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
	2019		2018			Change
Current Income Tax
Federal	$	21,455	$	11,019		$	10,436
Subtotal		21,455		11,019			10,436
Federal income tax on net capital gains		1,772		(7,004	)		8,776
Federal and foreign income taxes incurred	$	23,227	$	4,015		$	19,212

	Year Ended December 31
	2018			2017		Change
Current Income Tax
Federal	$	11,019		$	26,972	$	(15,953	)
Subtotal		11,019			26,972		(15,953	)
Federal income tax on net capital gains		(7,004	)		13,315		(20,319	)
Federal and foreign income taxes incurred	$	4,015		$	40,287	$	(36,272	)

67

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
	2019			2018			2017
Current income taxes incurred	$	23,227		$	4,015		$	40,287
Change in deferred income taxes (without tax on unrealized gains and losses)		(18,785	)		3,459			32,885
Total income tax reported	$	4,442		$	7,474		$	73,172
Income before taxes	$	383,643		$	188,983		$	227,142
		21.00	%		21.00	%		35.00	%
Expected income tax expense (benefit) at statutory rate	$	80,565		$	39,686		$	79,500
Increase (decrease) in actual tax reported resulting from:
Pre-tax income of disregarded subsidiaries	$	(522	)	$	(475	)	$	(592	)
Dividends received deduction		(2,556	)		(4,789	)		(7,859	)
Tax-exempt income		—			—			(151	)
Nondeductible expenses		869			388			227
Pre-tax items reported net of tax		(49,246	)		(8,842	)		(42,452	)
Tax credits		(27,744	)		(18,371	)		(9,455	)
Prior period tax return adjustment		8,236			(5,985	)		373
Change in tax rates		—			—			39,281
Change in uncertain tax positions		—			472			595
Deferred tax change on other items in surplus		(5,173	)		5,377			12,211
Other		13			13			1,494
Total income tax reported	$	4,442		$	7,474		$	73,172

On December 22, 2017, the TCJA reduced 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.

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.

The Company’s federal income tax return is consolidated with other included affiliated companies. Please see the listing of companies in Appendix A.

68

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 2019.

Incurred income taxes available for recoupment in the event of future losses:

	Total
2017	$	12,614
2018	$	—
2019		$2,346

The total amount of the unrecognized tax benefits that if recognized, would affect the effective income tax rate:

	Unrecognized Tax Benefits
Balance at January 1, 2018	$	1,745
Tax positions taken during prior period		472
Tax positions taken during current period		—
Settlements with taxing authorities		—
Lapse of applicable statute of limitations		—
Balance at December 31, 2018	$	2,217
Tax positions taken during prior period		—
Tax positions taken during current period		—
Settlements with taxing authorities		—
Lapse of applicable statute of limitations		—
Balance at December 31, 2019	$	2,217

The Company has no federal income tax returns currently under examination. The Internal Revenue Service completed its examination for years 2009 through 2013 resulting in tax return adjustments for which an appeals conference was requested. Federal income tax returns filed in 2014 through 2018 remain open, subject to potential future examination. The Company believes there are adequate defenses against or sufficient provisions established related to any open or contested tax positions.

69

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The Company classifies interest and penalties related to income taxes as income tax expense. The Company’s interest expense/(benefit) related to income taxes:

	Interest			Penalties		Total payable(receivable)
Balance at January 1, 2017	$	241		$	—	$	241
Interest expense (benefit)		433			—		433
Balance at December 31, 2017	$	674		$	—	$	674
Interest expense (benefit)		(227	)		—		(227	)
Balance at December 31, 2018	$	447		$	—	$	447
Interest expense (benefit)		(1,633	)		—		(1,633	)
Balance at December 31, 2019	$	(1,186	)	$	—	$	(1,186	)

10. Capital and Surplus

The Company has 24,000 common shares authorized, 16,321 shares issued and outstanding. Par value is $125.

On December 31, 2018, the Company had 17,142 common shares issued and outstanding. On December 20, 2019 the Company repurchased 821 shares of ordinary common stock at par for $103 plus additional contributed capital in the amount of $99,879 for a total of $99,982 paid to its shareholder, TLIC. These shares were subsequently cancelled.

Prior to the redemption in 2018, 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 for $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, TA Corp owned 0 shares and TLIC owned 0 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 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 (b) the Company’s statutory gain from operations before net realized capital gains (losses) on investments for the preceding year, not to exceed earned surplus as of the preceding December 31. Subject to the availability of unassigned surplus at the time of such dividend, the maximum payment which may be made in 2020, without prior approval of insurance regulatory authorities, is $246,724.

On June 21, 2019, the Company paid its parent companies, TLIC and TA Corp, ordinary common stock dividends of $9,075 and $65,925, respectively.

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.

70

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 various risk factors. At December 31, 2019, the Company meets the minimum RBC requirements.

The Company held special surplus funds in the amount of $12,928 and $10,781, as of December 31, 2019 and 2018, 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 in which the Company primarily loans out US Treasuries and other bonds. The Company receives collateral equal to 102% of the fair value of the loaned government or other 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, 2019 and 2018, respectively, securities with a fair value of $298,697 and $308,907 were on loan under securities lending agreements. At December 31, 2019 and 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 $311,367 and $319,971 at December 31, 2019 and 2018, respectively.

The contractual maturities of the securities lending collateral positions are as follows:

	Fair Value
	2019		2018
Open	$	311,367	$	319,246
Total		311,367		319,246
Securities received		—		—
Total collateral received	$	311,367		$319,246

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.

71

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The maturity dates of the reinvested securities lending collateral are as follows:

	2019				2018
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Open	$	33,002	$	33,002	$	26,000	$	26,001
30 days or less		96,454		96,454		96,925		96,925
31 to 60 days		83,998		83,998		69,374		69,374
61 to 90 days		37,388		37,388		32,836		32,836
91 to 120 days		16,488		16,488		46,560		46,560
121 to 180 days		21,933		21,933		40,177		40,177
1 to 2 years		—		—		874		874
2 to 3 years		5,270		5,270		2,039		2,039
Greater than 3 years		16,834		16,834		5,186		5,185
Total		311,367		311,367		319,971		319,971
Securities received		—		—		—		—
Total collateral reinvested	$	311,367	$	311,367	$	319,971	$	319,971

Collateral for securities lending transactions that extend beyond one year from the report date are as follows:

Description of collateral	2019		2018
ABS AUTOS	$	22,104	$	2,913
ABS CREDIT CARDS		—		5,186
Total collateral extending beyond one year of the reporting date	$	22,104	$	8,099

For securities lending, the Company’s source of cash used 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 $311,631 (fair value of $311,367) that are currently tradable securities that could be sold and used to pay for the $311,367 in collateral calls that could come due under a worst-case scenario.

72

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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 $739, $762, and $703 was allocated to the Company for the years ended December 31, 2019, 2018 and 2017, 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.

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 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 No. 102, Pensions. Pension expenses were $1,528, $1,490 and $1,554 for the years ended December 31, 2019, 2018 and 2017, 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 No. 92, Postretirement Benefits Other Than Pensions. The Company’s allocation of postretirement expenses was $324, $320 and $374 for the years ended December 31, 2019, 2018 and 2017, respectively.

73

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

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, 2019, 2018 and 2017 was insignificant.

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, LLC (Advisor) whereby Advisor serves as the administrator and advisor for the Company’s mortgage loan operations. Aegon USA Investment Management, LLC acts as a discretionary investment manager under an Investment Management Agreement with the Company. The amount received by the Company as a result of being a party to these agreements was $40,987, $44,781 and $62,077, during 2019, 2018 and 2017, respectively. The amount paid as a result of being party to these agreements was $66,374, $96,867 and $104,502 during 2019, 2018 and 2017, 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 Transamerica Series Trust. The Company received $9,453, $9,820 and $10,367 for these services during 2019, 2018 and 2017, respectively.

Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $4,249, $4,169 and $3,484 for the years ended December 31, 2019, 2018 and 2017, respectively.

Payables to and receivables from affiliates and intercompany borrowings bear interest at the thirty-day commercial paper rate. During 2019, 2018 and 2017, the Company paid (received) net interest of $36, $156 and $60, respectively, to (from) affiliates. At December 31, 2019 and 2018, the Company reported a net amount of $3,285 and $2,645 receivable from affiliates, respectively. Terms of settlement require that these amounts are settled within 90 days.

74

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

In accordance with SSAP No. 25, Affiliates and Other Related Parties, the Company reports short-term intercompany notes receivable as short-term investments. At December 31, 2019, the Company had no short-term intercompany notes receivable.

At December 31, 2018, the Company had short-term intercompany notes receivable of $50,000.

Receivable from	Amount		Due By		Interest Rate
Transamerica Corporation		50,000		8/16/2019		1.97	%

The Company utilizes the look-through approach in valuing its investment in the following entities.

Real Estate Alternatives Portfolio 2, LLC	$	1,812
Real Estate Alternatives Portfolio 4 HR, LLC		5,943
Real Estate Alternatives Portfolio 4 MR, LLC		380
Aegon Multi-Family Equity Fund, LLC		17,656
Aegon Workforce Housing Fund 2, L.P.		48,821
Aegon Workforce Housing Fund 3, L.P.		2,079
Natural Resources Alternatives Portfolio I, LLC		10,637
Natural Resources Alternatives Portfolio 3, LLC		22,756
Zero Beta Fund, LLC		141,412
	$	251,496

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.

75

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, 2019 and 2018:

December 31, 2019

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		9	%	$	2,273	$	2,273	$	—
		—			—		—		—
		—			—		—		—
		—			—		—		—
		—			—		—		—
		—			—		—		—
Total SSAP No. 97 8b(iii) Entities		XXX		$	2,273	$	2,273	$	—
SSAP No. 97 8b(iv) Entities
		—	%	$	—	$	—	$	—
		—			—		—		—
		—			—		—		—
Total SSAP No. 97 8b(iv) Entities		XXX		$	—	$	—	$	—
Total SSAP No. 97 8b Entities (except 8bi entities)		XXX		$	2,273	$	2,273	$	—
Aggregate Total		XXX		$	2,273	$	2,273	$	—

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		9	%	$	3,932	$	3,932	$	—
		—			—		—		—
		—			—		—		—
		—			—		—		—
		—			—		—		—
		—			—		—		—
Total SSAP No. 97 8b(iii) Entities		XXX		$	3,932	$	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	$	3,932	$	—
Aggregate Total		XXX		$	3,932	$	3,932	$	—

76

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

The following table shows the NAIC responses for the SCA filings (except 8bi entities):

December 31, 2019

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
					$	—		—		—		—
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		S2		10/31/2019	$	3,672		Y		N		I
					$	—		—		—		—
Total SSAP No. 97 8b(iii) Entities		—		—		3,672		—		—		—
SSAP No. 97 8b(iv) Entities
					$	—		—		—		—
Total SSAP No. 97 8b(iv) Entities		—		—	$	—		—		—		—
Total SSAP No. 97 8b Entities (except 8bi entiti		—		—	$	3,672		—		—		—
Aggregate Total		—		—	$	3,672		—		—		—

* 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

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
					$	—		—		—		—
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		S2		12/21/2018	$	2,889		Y		N		I
						—		—		—		—
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 entiti		—		—	$	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.

77

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.	23-1945930	No	Deferred and Income	C, B, P, U		$52,354
100 Vanguard Blvd			Annuities
Malvern, PA 19355

C  -    Claims Payment

B  -    Binding Authority

P  -    Premium Collection

U  -    Underwriting

For years ended December 31, 2019, 2018 and 2017, the Company had $52,354, $60,163 and $50,268, respectively, of direct premiums written by The Vanguard Group, Inc.

15. Commitments and Contingencies

At December 31, 2019 and 2018, the Company has mortgage loan commitments of $68,611 and $33,752, respectively.

The Company has contingent commitments of $142,812 and $169,294, at December 31, 2019 and 2018, respectively, to provide additional funding for joint ventures, partnerships and limited liability companies, which includes LIHTC commitments of $104,437 and $149,810, respectively.

Private placement commitments outstanding as of December 31, 2019 and 2018 were $14,610 and $22,936, respectively.

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. The amount of cash collateral pledged by the Company as of December 31, 2019 and 2018, respectively, was $8,718 and $0.

Cash collateral received from derivative counterparties as well as the obligation to return the collateral is recorded on the Company’s balance sheet. The amount of cash collateral received as of December 31, 2019 and 2018, respectively, was $60,038 and $61,144.

At December 31, 2019 and 2018, securities in the amount of $0 and $2,387, 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. Through its membership, the Company establishes the option to access funds through secured borrowing arrangements with the FHLB. The Company is not in an active borrowing position; therefore, collateral pledged and borrowings are not applicable for this Company.

78

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

At December 31, 2019 and 2018, the Company purchased/owned the following FHLB stock as part of the agreement:

	Year Ended December 31
	2019		2018
Activity Stock	$	2,554	$	1,115
Total	$	2,554	$	1,115

The Company is 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 their complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and punitive damages, and injunctive relief, damages arising from such demands are typically not 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 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 $66 and $77, and an offsetting premium tax benefit of $50 and $60 at December 31, 2019 and 2018, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund (benefit) expense was $4,700 , $254 and $3,412 for the years ended December 31, 2019, 2018 and 2017, respectively.

79

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 residential mortgage backed securities are delivered to the counterparty once adequate collateral has been received. As of December 31, 2019 and 2018, the Company had dollar repurchase agreements outstanding in the amount $66,348 and $0, which is included in borrowed money on the balance sheets. Those amounts included accrued interest of $172 and $0 at December 31, 2019 and 2018, respectively. At December 31, 2019, securities with a book value of $66,227 and a fair value of $66,360 were subject to dollar repurchase agreements. These securities have maturity dates that range from December 1, 2048 to September 1, 2049. At December 31, 2018, securities with a book value of $0 and a fair value of $0 were subject to dollar repurchase agreements. The Company does not have the legal right to recall or substitute the underlying assets prior to the transaction’s scheduled termination. Upon scheduled termination, the counterparty is obligated to return substantially similar assets.

The contractual maturities of the dollar repurchase agreement positions are as follows:

	Fair Value
	2019		2018
Open	$	66,176	$	—
Total		66,176		—
Securities received		—	$	—
Total collateral received	$	66,176		—

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 2019 and 2018 there were no securities sold and reacquired within 30 days of the sale date.

80

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

17. Reconciliation to Statutory Statement

The following is a reconciliation of amounts previously reported to the NYDFS in the 2019 Annual Statement, to those reported in the accompanying statutory-basis financial statements:

	December 31
	2019			2018
Balance Sheets
Total assets as reported in the Company’s Annual Statement	$	31,907,545		$	29,480,572
Securities lending reinvested collateral assets		—			11,000
Total assets as reported in the accompanying audited statutory basis balance sheet	$	31,907,545		$	29,491,572
Total liabilities as reported in the Company’s Annual Statement	$	30,889,577		$	28,390,062
Decrease in policy and contract claim reserves		(8,268	)		—
Increase in other liabilities		1,736			—
Payable for collateral under securities loaned and other transactions		—			11,000
Total liabilities as reported in the accompanying audited statutory basis balance sheet	$	30,883,045		$	28,401,062
Total capital and surplus as reported in the Company’s Annual Statement	$	1,017,968		$	1,090,510
Increase in net income		6,532			—
Total capital and surplus as reported in the accompanying audited statutory basis balance sheet	$	1,024,500		$	1,090,510
Statements of Operations
Statutory net income as reported in the Company’s Annual Statement	$	351,150		$	200,439
Decrease in premiums and other considerations		(406,853	)		(551,350	)
Decrease in net investment income		—			(3,400	)
Increase (decrease) in fee revenue and other income		(1,150	)		10,700
Decrease in surrender benefits		360,117			578,919
Increase in net transfers to (from) separate accounts		47,886			(33,369	)
Decrease in death benefits		8,268			—
Increase in federal income tax expense		(1,736	)		(1,029	)
Increase in net realized capital gains (losses), after tax and amounts		—			1,200
transferred to interest maintenance reserve
Total net income as reported in the accompanying audited statutory basis statement of operations	$	357,682		$	202,110
Statement of Changes in Capital and Surplus
Capital and surplus	$	1,017,968		$	1,090,510
Increase in net income		6,532			1,671
Decrease in other changes—net		—			(1,671	)
Total capital and surplus as reported in the accompanying audited statutory basis statements of changes in capital and surplus		1,024,500			1,090,510

The reconciling differences to the Annual Statement are driven by Management’s decision to revise prior year amounts. Please refer to Revision to Prior Years in Note 3 for further details. Management also decided to record a current year adjustment identified after annual statement reporting.

81

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

18. 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). The Company has not identified any Type I subsequent events for the year ended December 31, 2019 through April 27, 2020.

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). Since January 2020, the Coronavirus disease (COVID-19) outbreak is causing disruption to business, markets, and industry. The Company is continuously monitoring the market, and the economic factors that impact the Company, to proactively manage the associated risks. At this point, management believes that the most significant risks the Company faces are related to financial markets (particularly credit, equity, and interest rates risks), and underwriting risks (particularly related to mortality, morbidity and policyholder behavior). As of the audit report release date, the Company continues to monitor and evaluate the impacts of the COVID -19 crisis on the Company’s 2020 results through the use of sensitivities and stress testing. While it is too early to provide long -term impacts, if any, management has determined the Company remains strongly capitalized with RBC remaining within target limits set by the capital management policy.

82

Transamerica Financial Life Insurance Company

Appendix A – Listing of Affiliated Companies (continued)

Transamerica Corporation

EIN: 42-1484983

AFFILIATIONS SCHEDULE

YEAR ENDED DECEMBER 31, 2019

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		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
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
Stonebridge Benefit Services Inc		75-2548428
Stonebridge Reinsurance Company		61-1497252
TCF Asset Management Corp		84-0642550

83

Transamerica Financial Life Insurance Company

Appendix A – Listing of Affiliated Companies (continued)

Transamerica Corporation

EIN: 42-1484983

AFFILIATIONS SCHEDULE

YEAR ENDED DECEMBER 31, 2019

Entity Name	FEIN
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
Tranasmerica Advisors Life Insurance Company		91-1325756
Transamerica Accounts Holding Corp		36-4162154
Transamerica Affinity Services Inc		42-1523438
Transamerica Affordable Housing Inc		94-3252196
Transamerica Agency Network Inc		61-1513662
Transamerica Asset Management		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		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		52-1525601
Transamerica Small Business Capital Inc		36-4251204
Transamerica Stable Value Solutions Inc		27-0648897
Transamerica Vendor Financial Services Corporation		36-4134790

84

Transamerica Financial Life Insurance Company

Appendix A – Listing of Affiliated Companies (continued)

Transamerica Corporation

EIN: 42-1484983

AFFILIATIONS SCHEDULE

YEAR ENDED DECEMBER 31, 2019

Entity Name	FEIN
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

85

Statutory-Basis

Financial Statement Schedule

86

Transamerica Financial Life Insurance Company

Summary of Investments – Other Than

Investments in Related Parties

(Dollars in Thousands)

December 31, 2019

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	$	462,692	$	598,203	$	476,086
States, municipalities and political subdivisions		92,649		96,826		92,649
Foreign governments		85,432		96,049		85,431
Hybrid securities		107,707		107,077		107,707
All other corporate bonds		4,572,019		4,929,354		4,570,885
Preferred stocks		4,552		4,759		4,552
Total fixed maturities		5,325,051		5,832,268		5,337,310
Equity securities
Common stocks:
Industrial, miscellaneous and all other		3,759		3,763		3,763
Total equity securities		3,759		3,763		3,763
Mortgage loans on real estate		1,546,510				1,546,510
Policy loans		130,787				130,787
Other long-term investments		35,548				35,548
Securities lending		311,367				311,367
Cash, cash equivalents and short-term investments		439,852				439,852
Total investments	$	7,792,874			$	7,805,137

(1) Equity securities are reported at original cost. Fixed maturities are reported at original cost reduced by repayments and adjusted for amortization of premiums and accrual of discounts.

(2) United States government, state, municipal and political, hybrid and corporate bonds of $3,504 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.

87

Transamerica Financial Life Insurance Company

Supplementary Insurance Information

(Dollars in Thousands)

SCHEDULE III

	Future Policy Benefits and Unearned Expenses		Premiums Liabilities		Policy and Contract		Premium Revenue			Net Investment Income*		Benefits, Claims Losses and Settlement Expenses		Other Operating Expenses*
Year ended December 31, 2019
Individual life	$	1,245,762	$	—	$	14,317	$	171,165		$	61,536	$	70,837	$	65,344
Individual health		114,044		3,759		6,519		41,249			4,828		12,282		18,861
Group life and health		216,267		2,315		7,947		67,347			11,062		33,566		24,159
Annuity		4,911,215		—		466		5,026,192			266,911		6,651,392		(1,054,826	)
	$	6,487,288	$	6,074	$	29,249	$	5,305,953		$	344,337	$	6,768,077	$	(946,462	)
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		4,913,872			238,546		8,007,340		(2,740,425	)
Other		—		—		—		—			48,431		—		—
	$	6,633,300	$	6,273	$	41,237	$	5,202,469		$	347,235	$	8,268,447	$	(2,638,125	)
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		49,067			3,206		72,440		14,485
Group life and health		181,571		2,554		10,627		79,898			8,035		63,981		31,511
Annuity		5,447,545		—		519		4,606,263			259,675		5,231,402		(286,905	)
Other		—		—		—		—			52,874		—		—
	$	6,760,704	$	6,859	$	40,141	$	4,733,929		$	371,734	$	5,386,599	$	(183,417	)

* 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

88

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, 2019
Life insurance in force	$	26,128,106	$	119,674,715	$	117,273,163	$	23,726,554			494	%
Premiums:
Individual life	$	188,457	$	374,053	$	356,761	$	171,165			208	%
Individual health		41,256		35		28		41,249			0	%
Group life and health		81,121		14,681		907		67,347			1	%
Annuity		5,021,681		299		4,810		5,026,192			0	%
	$	5,332,515	$	389,068	$	362,506	$	5,305,953			7	%
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		4,909,238		985		5,619		4,913,872			0	%
	$	5,218,708	$	462,707	$	446,468	$	5,202,469			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		193		20		49,067			0	%
Group life and health		81,890		3,073		1,081		79,898			1	%
Annuity		4,769,215		168,576		5,624		4,606,263			0	%
	$	5,079,996	$	866,734	$	520,667	$	4,733,929			10	%

89

FINANCIAL STATEMENTS

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Years Ended December 31, 2019 and 2018

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Financial Statements

Years Ended December 31, 2019 and 2018

Contents

Report of Independent Registered Public Accounting Firm	1
Financial Statements
Statements of Assets and Liabilities	2
Statements of Operations and Changes in Net Assets	6
Notes to Financial Statements	35

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, 2019, 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 of Separate Account VA BNY as of December 31, 2019, 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 JPMorgan Asset Allocation - Conservative Service Class (1)
AB Growth and Income Class B Shares (1)	TA JPMorgan Asset Allocation - Growth Initial Class (1)
AB Large Cap Growth Class B Shares (1)	TA JPMorgan Asset Allocation - Growth Service Class (1)
American Funds - Asset Allocation Class 2 Shares (1)	TA JPMorgan Asset Allocation - Moderate Initial Class (1)
American Funds - Bond Class 2 Shares (1)	TA JPMorgan Asset Allocation - Moderate Service Class (1)
American Funds - Growth Class 2 Shares (1)	TA JPMorgan Asset Allocation - Moderate Growth Initial Class (1)
American Funds - Growth-Income Class 2 Shares (1)	TA JPMorgan Asset Allocation - Moderate Growth Service Class (1)
American Funds - International Class 2 Shares (1)	TA JPMorgan Core Bond Service Class (1)
DFA VA Equity Allocation (3)	TA JPMorgan Enhanced Index Initial Class (1)
DFA VA Global Bond (3)	TA JPMorgan Enhanced Index Service Class (1)
DFA VA Global Moderate Allocation (3)	TA JPMorgan International Moderate Growth Service Class (1)
DFA VA International Small (3)	TA JPMorgan Mid Cap Value Service Class (1)
DFA VA International Value (3)	TA JPMorgan Tactical Allocation Service Class (1)
DFA VA Short-Term Fixed (3)	TA Legg Mason Dynamic Allocation - Balanced Service Class (1)
DFA VA U.S. Large Value (3)	TA Legg Mason Dynamic Allocation - Growth Service Class (1)
DFA VA U.S. Targeted Value (3)	TA Levin Large Cap Value Service Class (2)
Fidelity® VIP Balanced Service Class 2 (1)	TA Madison Diversified Income Service Class (1)
Fidelity® VIP Contrafund® Initial Class (1)	TA Managed Risk - Balanced ETF Service Class (1)
Fidelity® VIP Contrafund® Service Class 2 (1)	TA Managed Risk - Conservative ETF Service Class (1)
Fidelity® VIP Equity-Income Service Class 2 (1)	TA Managed Risk - Growth ETF Service Class (1)
Fidelity® VIP Growth Service Class 2 (1)	TA Market Participation Strategy Service Class (1)
Fidelity® VIP Growth Opportunities Service Class 2 (1)	TA Morgan Stanley Capital Growth Initial Class (1)
Fidelity® VIP Mid Cap Initial Class (1)	TA Morgan Stanley Capital Growth Service Class (1)
Fidelity® VIP Mid Cap Service Class 2 (1)	TA Multi-Managed Balanced Initial Class (1)
Fidelity® VIP Value Strategies Initial Class (1)	TA Multi-Managed Balanced Service Class (1)
Fidelity® VIP Value Strategies Service Class 2 (1)	TA Multi-Manager Alternative Strategies Service Class (1)
Franklin Allocation Class 4 Shares (1)	TA PIMCO Tactical - Balanced Service Class (1)
Franklin Income Class 2 Shares (1)	TA PIMCO Tactical - Conservative Service Class (1)
Franklin Mutual Shares Class 2 Shares (1)	TA PIMCO Tactical - Growth Service Class (1)
Franklin Templeton Foreign Class 2 Shares (1)	TA PIMCO Total Return Initial Class (1)
Invesco V.I. American Franchise Series II Shares (1)	TA PIMCO Total Return Service Class (1)
Janus Henderson - Enterprise Service Shares (1)	TA PineBridge Inflation Opportunities Service Class (1)
Janus Henderson - Global Research Service Shares (1)	TA ProFunds UltraBear Service Class (OAM) (1)
Janus Henderson - Mid Cap Value Service Shares (1)	TA QS Investors Active Asset Allocation - Conservative Service Class (1)
JPMorgan Insurance Trust Core Bond Class 1 Shares (1)	TA QS Investors Active Asset Allocation - Moderate Service Class (1)
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares (1)	TA QS Investors Active Asset Allocation - Moderate Growth Service Class (1)
JPMorgan Insurance Trust Small Cap Core Class 1 Shares (1)	TA Small/Mid Cap Value Initial Class (1)
JPMorgan Insurance Trust U.S. Equity Class 1 Shares (1)	TA Small/Mid Cap Value Service Class (1)
MFS® New Discovery Service Class (1)	TA T. Rowe Price Small Cap Initial Class (1)
MFS® Total Return Service Class (1)	TA T. Rowe Price Small Cap Service Class (1)
State Street Total Return V.I.S. Class 3 Shares (1)	TA TS&W International Equity Initial Class (1)
TA 60/40 Allocation Service Class (2)	TA TS&W International Equity Service Class (1)
TA Aegon High Yield Bond Initial Class (1)	TA U.S. Equity Index Service Class (1)
TA Aegon High Yield Bond Service Class (1)	TA WMC US Growth Initial Class (1)
TA Aegon U.S. Government Securities Initial Class (1)	TA WMC US Growth Service Class (1)
TA Aegon U.S. Government Securities Service Class (1)	Vanguard® - Capital Growth (3)
TA American Funds Managed Risk - Balanced Service Class (1)	Vanguard® - Conservative Allocation (3)
TA Barrow Hanley Dividend Focused Initial Class (1)	Vanguard® - Diversified Value (3)
TA Barrow Hanley Dividend Focused Service Class (1)	Vanguard® Balanced (3)
TA BlackRock Global Allocation Service Class (1)	Vanguard® Equity Income (3)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class (1)	Vanguard® Equity Index (1)
TA BlackRock Global Allocation Managed Risk - Growth Service Class (1)	Vanguard® Global Bond Index (3)
TA BlackRock Global Real Estate Securities Initial Class (1)	Vanguard® Growth (3)
TA BlackRock Global Real Estate Securities Service Class (1)	Vanguard® High Yield Bond (3)
TA BlackRock Government Money Market Initial Class (1)	Vanguard® International (1)
TA BlackRock Government Money Market Service Class (1)	Vanguard® Mid-Cap Index (1)
TA BlackRock iShares Edge 100 Service Class (1)	Vanguard® Moderate Allocation (3)
TA BlackRock iShares Edge 40 Initial Class (1)	Vanguard® Money Market (3)
TA BlackRock iShares Edge 40 Service Class (1)	Vanguard® Real Estate Index (1)
TA BlackRock iShares Edge 50 Service Class (1)	Vanguard® Short-Term Investment Grade (1)
TA BlackRock iShares Edge 75 Service Class (1)	Vanguard® Total Bond Market Index (1)
TA BlackRock Tactical Allocation Service Class (1)	Vanguard® Total International Stock Market Index (3)
TA Greystone International Growth Initial Class (1)	Vanguard® Total Stock Market Index (3)
TA Greystone International Growth Service Class (1)	Voya Global Perspectives Class S Shares (1)
TA International Equity Index Service Class (1)	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 JPMorgan Asset Allocation - Conservative Initial Class (1)	Wanger USA (1)

(1) Statements of operations and changes in net assets for the years ended December 31, 2019 and 2018

(2) Statements of operations and changes in net assets for the year ended December 31, 2019 and the period May 1, 2018 (commencement of operations) through December 31, 2018

(3) Statements of operations and changes in net assets for the period December 23, 2019 (commencement of operations) through December 31, 2019

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 of 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 of 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.

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, 2019 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 17, 2020

We have served as the auditor of one or more of the subaccounts of Separate Account VA BNY since 2014.

1

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Assets and Liabilities

December 31, 2019

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		571,782.718	$	6,143,008	$	5,775,005	$	8		$	5,775,013		1,415,672	$	2.036880	$	15.183174
AB Growth and Income Class B Shares		833,622.359		25,080,834		24,808,601		63			24,808,664		4,287,814		2.047969		19.679929
AB Large Cap Growth Class B Shares		6,959.206		305,631		398,623		(5	)		398,618		110,099		2.531101		17.177241
American Funds - Asset Allocation Class 2 Shares		2,808,643.407		62,480,510		66,817,627		(43	)		66,817,584		10,219,303		2.076358		16.996598
American Funds - Bond Class 2 Shares		1,608,889.692		17,376,735		17,729,964		(67	)		17,729,897		4,067,969		1.132557		11.323489
American Funds - Growth Class 2 Shares		904,259.073		66,903,577		72,856,154		7			72,856,161		5,153,853		2.970878		24.274122
American Funds - Growth-Income Class 2 Shares		918,324.284		43,974,465		45,989,680		37			45,989,717		3,578,073		2.626851		21.868044
American Funds - International Class 2 Shares		1,966,461.693		39,039,469		40,863,074		(47	)		40,863,027		11,158,019		1.408836		14.760493
DFA VA Equity Allocation		-		-		-		-			-		-		10.041461		10.042064
DFA VA Global Bond		-		-		-		-			-		-		10.008134		10.008736
DFA VA Global Moderate Allocation		-		-		-		-			-		-		10.028724		10.029328
DFA VA International Small		-		-		-		-			-		-		10.144432		10.145042
DFA VA International Value		-		-		-		-			-		-		10.031312		10.031917
DFA VA Short-Term Fixed		-		-		-		-			-		-		9.998584		9.999186
DFA VA U.S. Large Value		-		-		-		-			-		-		10.027809		10.028414
DFA VA U.S. Targeted Value		-		-		-		-			-		-		9.993026		9.993629
Fidelity® VIP Balanced Service Class 2		1,828,185.931		31,423,189		34,772,096		82			34,772,178		7,129,126		1.872855		17.713821
Fidelity® VIP Contrafund® Initial Class		-		-		-		-			-		-		20.647796		21.135276
Fidelity® VIP Contrafund® Service Class 2		1,782,238.271		58,774,693		64,338,802		44			64,338,846		7,212,975		2.206644		20.738773
Fidelity® VIP Equity-Income Service Class 2		24,604.072		502,793		568,354		(9	)		568,345		246,717		1.870408		12.479078
Fidelity® VIP Growth Service Class 2		14,796.688		719,944		1,145,708		22			1,145,730		347,776		2.485802		17.100992
Fidelity® VIP Growth Opportunities Service Class 2		67.657		1,579		3,251		7			3,258		1,150		2.752790		3.723174
Fidelity® VIP Mid Cap Initial Class		-		-		-		-			-		-		17.540204		17.954380
Fidelity® VIP Mid Cap Service Class 2		856,457.806		27,735,498		27,192,535		14			27,192,549		2,704,386		2.018607		17.617757
Fidelity® VIP Value Strategies Initial Class		1,976.360		26,356		26,305		-			26,305		1,534		16.748187		17.143663
Fidelity® VIP Value Strategies Service Class 2		975,495.002		12,765,918		13,100,898		(21	)		13,100,877		1,436,606		2.024143		16.808811
Franklin Allocation Class 4 Shares		325,209.501		2,325,548		2,266,710		(9	)		2,266,701		1,035,878		2.078832		11.522228
Franklin Income Class 2 Shares		144,456.944		2,178,022		2,298,310		7			2,298,317		1,442,333		1.462567		11.723515
Franklin Mutual Shares Class 2 Shares		27,706.177		506,695		521,153		15			521,168		336,678		1.390236		11.538677
Franklin Templeton Foreign Class 2 Shares		77,862.382		1,077,529		1,084,623		(3	)		1,084,620		1,045,944		0.961381		10.693765
Invesco V.I. American Franchise Series II Shares		2,525.081		117,034		161,353		9			161,362		69,582		2.166813		15.806723
Janus Henderson - Enterprise Service Shares		4,858.507		252,697		388,340		12			388,352		80,431		1.941520		16.179423
Janus Henderson - Global Research Service Shares		6,526.559		205,874		360,723		(5	)		360,718		188,381		1.249676		14.453939
Janus Henderson - Mid Cap Value Service Shares		160.167		2,416		2,582		(3	)		2,579		900		2.787162		2.959091
JPMorgan Insurance Trust Core Bond Class 1 Shares		37,949.307		426,532		426,550		(7	)		426,543		312,512		1.279021		10.459976
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares		16,758.642		108,872		197,920		(3	)		197,917		52,138		3.540639		11.639217
JPMorgan Insurance Trust Small Cap Core Class 1 Shares		50.666		846		1,167		(1	)		1,166		308		3.533728		11.582122
JPMorgan Insurance Trust U.S. Equity Class 1 Shares		3,116.699		59,805		100,576		5			100,581		24,613		3.821041		13.834941
MFS® New Discovery Service Class		105,311.866		1,709,240		1,897,720		(13	)		1,897,707		494,433		3.267408		16.693531
MFS® Total Return Service Class		41,102.513		861,766		1,004,134		(15	)		1,004,119		491,795		1.688912		12.155997
State Street Total Return V.I.S. Class 3 Shares		293,002.679		4,737,475		4,647,022		12			4,647,034		1,286,288		1.513073		14.248531
TA 60/40 Allocation Service Class		103,171.634		1,044,467		1,153,459		(1	)		1,153,458		101,302		11.209732		11.552036

See accompanying notes. 2

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Assets and Liabilities

December 31, 2019

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
TA Aegon High Yield Bond Initial Class		10,658.868	$	84,937	$	82,926	$	2		$	82,928		25,128	$	1.580578	$	13.512196
TA Aegon High Yield Bond Service Class		998,212.423		7,878,514		7,895,860		1			7,895,861		1,767,357		1.788970		13.168392
TA Aegon U.S. Government Securities Initial Class		17,082.929		199,767		186,546		(3	)		186,543		89,828		1.196712		2.076661
TA Aegon U.S. Government Securities Service Class		2,943,636.896		33,400,919		33,204,224		(33	)		33,204,191		9,041,053		1.097688		10.715070
TA American Funds Managed Risk - Balanced Service Class		6,345,355.109		68,675,165		75,573,179		(100	)		75,573,079		6,177,727		11.732256		12.842299
TA Barrow Hanley Dividend Focused Initial Class		145,943.659		2,471,182		3,293,948		26			3,293,974		1,100,009		1.658598		18.085286
TA Barrow Hanley Dividend Focused Service Class		1,029,294.456		22,968,105		23,251,762		(1	)		23,251,761		4,708,955		1.732018		17.608666
TA BlackRock Global Allocation Service Class		4,525,547.882		62,246,869		68,154,751		139			68,154,890		19,575,170		1.373191		13.713017
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		1,518,806.729		14,391,476		15,233,631		31			15,233,662		1,420,910		10.336924		11.522436
TA BlackRock Global Allocation Managed Risk - Growth Service Class		1,011,059.309		9,432,181		10,262,252		(13	)		10,262,239		938,245		10.557814		12.056512
TA BlackRock Global Real Estate Securities Initial Class		1,136.399		14,900		15,228		(5	)		15,223		4,917		1.627762		12.822063
TA BlackRock Global Real Estate Securities Service Class		454,724.121		5,979,664		6,407,063		(9	)		6,407,054		1,280,292		1.351017		12.491824
TA BlackRock Government Money Market Initial Class		179,060.770		179,061		179,061		2			179,063		135,343		0.795145		1.323027
TA BlackRock Government Money Market Service Class		29,386,979.888		29,386,978		29,386,980		(265	)		29,386,715		8,862,256		0.781551		10.030370
TA BlackRock iShares Edge 100 Service Class		1,788,956.810		20,864,699		25,582,082		(1	)		25,582,081		1,720,071		13.423806		15.243939
TA BlackRock iShares Edge 40 Initial Class		6,516.919		56,351		61,194		1			61,195		31,980		1.547032		2.000315
TA BlackRock iShares Edge 40 Service Class		2,342,841.543		21,982,451		21,835,283		(4	)		21,835,279		5,634,719		1.186601		12.913756
TA BlackRock iShares Edge 50 Service Class		2,124,393.279		24,563,487		26,937,307		(7	)		26,937,300		2,157,603		11.843892		12.969490
TA BlackRock iShares Edge 75 Service Class		1,567,168.558		18,340,728		21,407,523		5			21,407,528		1,582,836		12.615169		13.962134
TA BlackRock Tactical Allocation Service Class		6,160,056.090		94,811,182		97,944,892		276			97,945,168		23,323,488		1.333545		14.348419
TA Greystone International Growth Initial Class		13,669.275		114,698		113,728		(4	)		113,724		59,963		1.619456		13.829997
TA Greystone International Growth Service Class		992,516.908		8,586,765		8,079,088		(39	)		8,079,049		1,597,061		1.368285		13.480466
TA International Equity Index Service Class		374,253.086		4,028,083		4,255,258		3			4,255,261		380,767		10.797802		11.473030
TA Janus Balanced Service Class		6,085,400.522		86,426,690		102,356,437		(128	)		102,356,309		14,667,063		1.596971		17.294286
TA Janus Mid-Cap Growth Initial Class		537.407		16,689		21,271		(1	)		21,270		4,730		2.153793		19.589675
TA Janus Mid-Cap Growth Service Class		533,614.113		18,075,345		20,122,588		17			20,122,605		3,279,903		2.393999		19.079610
TA JPMorgan Asset Allocation - Conservative Initial Class		-		-		-		-			-		-		1.656093		2.114188
TA JPMorgan Asset Allocation - Conservative Service Class		6,067,147.772		63,073,273		63,826,395		(130	)		63,826,265		18,105,007		1.299602		13.167548
TA JPMorgan Asset Allocation - Growth Initial Class		3,282.905		34,403		41,168		1			41,169		16,941		2.139756		2.870741
TA JPMorgan Asset Allocation - Growth Service Class		790,890.524		9,400,158		9,822,860		8			9,822,868		1,582,914		1.606701		16.876109
TA JPMorgan Asset Allocation - Moderate Initial Class		31,512.170		380,045		378,461		-			378,461		174,302		1.858093		2.404150
TA JPMorgan Asset Allocation - Moderate Service Class		26,616,874.592		306,547,075		314,877,626		(56	)		314,877,570		73,968,848		1.500975		14.180773
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		3,923.185		46,885		48,804		(2	)		48,802		21,059		2.012922		2.644304
TA JPMorgan Asset Allocation - Moderate Growth Service Class		15,324,423.785		182,438,952		187,724,191		160			187,724,351		41,813,237		1.428766		15.374127
TA JPMorgan Core Bond Service Class		2,923,920.470		40,432,340		41,431,953		(67	)		41,431,886		10,793,962		1.100675		11.413570
TA JPMorgan Enhanced Index Initial Class		34,165.756		593,171		751,988		1			751,989		173,973		2.479689		21.859789
TA JPMorgan Enhanced Index Service Class		259,440.486		5,374,441		5,689,530		7			5,689,537		564,116		2.408483		21.302258
TA JPMorgan International Moderate Growth Service Class		4,472,240.013		43,632,705		44,185,731		96			44,185,827		14,401,813		1.140421		12.909243
TA JPMorgan Mid Cap Value Service Class		1,135,197.762		18,471,461		18,129,108		(17	)		18,129,091		1,664,311		2.285156		18.373288
TA JPMorgan Tactical Allocation Service Class		5,218,330.949		77,658,914		82,867,095		(14	)		82,867,081		15,867,118		1.247201		12.911714
TA Legg Mason Dynamic Allocation - Balanced Service Class		6,562,199.871		77,654,504		85,177,354		82			85,177,436		15,186,512		1.165230		13.295055
TA Legg Mason Dynamic Allocation - Growth Service Class		4,067,156.059		50,298,673		55,720,038		(183	)		55,719,855		9,594,730		1.291710		13.860477

See accompanying notes. 3

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Assets and Liabilities

December 31, 2019

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
TA Levin Large Cap Value Service Class		82,570.344	$	827,273	$	866,163	$	-		$	866,163		83,542	$	10.236136	$	10.548792
TA Madison Diversified Income Service Class		417,124.303		5,524,995		5,773,000		1			5,773,001		479,428		1.423157		13.855150
TA Managed Risk - Balanced ETF Service Class		35,321,810.706		408,675,621		453,178,831		83			453,178,914		92,287,393		1.182569		13.805374
TA Managed Risk - Conservative ETF Service Class		6,093,521.612		73,355,611		76,229,955		(44	)		76,229,911		21,020,453		1.196153		13.194429
TA Managed Risk - Growth ETF Service Class		32,697,120.887		329,339,734		354,763,762		(80	)		354,763,682		82,914,893		1.396277		14.924205
TA Market Participation Strategy Service Class		2,846,679.551		33,243,919		33,306,151		29			33,306,180		6,372,242		1.373424		14.947930
TA Morgan Stanley Capital Growth Initial Class		112,163.446		1,941,489		2,070,537		(6	)		2,070,531		497,222		3.460703		10.546561
TA Morgan Stanley Capital Growth Service Class		1,710,775.926		29,528,747		30,451,811		(1	)		30,451,810		2,312,397		3.159661		28.633381
TA Multi-Managed Balanced Initial Class		2,295.965		30,878		35,679		(10	)		35,669		12,065		2.587224		3.064942
TA Multi-Managed Balanced Service Class		9,278,375.878		127,703,064		140,845,746		44			140,845,790		14,676,803		1.917095		16.935426
TA Multi-Manager Alternative Strategies Service Class		40,053.864		399,360		408,149		-			408,149		39,931		9.827363		10.759892
TA PIMCO Tactical - Balanced Service Class		2,874,927.423		33,467,288		35,792,846		(18	)		35,792,828		8,706,125		1.184655		14.242665
TA PIMCO Tactical - Conservative Service Class		1,878,357.071		21,452,493		22,878,389		(13	)		22,878,376		5,073,711		1.152799		13.812809
TA PIMCO Tactical - Growth Service Class		3,102,956.934		35,337,901		38,321,518		3			38,321,521		6,130,646		1.205599		14.795020
TA PIMCO Total Return Initial Class		21,349.127		245,018		251,066		3			251,069		144,114		1.429002		1.788380
TA PIMCO Total Return Service Class		6,155,660.385		70,139,978		71,713,443		86			71,713,529		24,181,100		1.129466		11.292052
TA PineBridge Inflation Opportunities Service Class		1,549,068.916		15,929,728		16,265,224		(14	)		16,265,210		6,890,549		1.003019		10.721312
TA ProFunds UltraBear Service Class (OAM)		1,620,055.527		712,911		453,616		120			453,736		18,877,817		0.022777		4.085741
TA QS Investors Active Asset Allocation - Conservative Service Class		2,048,092.221		21,738,665		22,160,358		(18	)		22,160,340		6,386,750		1.124829		12.586417
TA QS Investors Active Asset Allocation - Moderate Service Class		7,409,314.588		83,838,201		85,725,770		51			85,725,821		21,167,125		1.189098		12.826137
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		4,251,674.551		47,475,379		48,681,674		69			48,681,743		10,905,328		1.175003		13.178551
TA Small/Mid Cap Value Initial Class		151,571.356		2,887,912		2,957,157		6			2,957,163		258,481		2.228640		18.992028
TA Small/Mid Cap Value Service Class		875,248.770		16,860,569		16,559,707		51			16,559,758		3,108,705		2.381408		18.502409
TA T. Rowe Price Small Cap Initial Class		10,925.273		149,224		179,393		(4	)		179,389		55,309		2.654063		23.134489
TA T. Rowe Price Small Cap Service Class		2,778,537.894		39,299,754		42,539,415		(55	)		42,539,360		4,617,104		3.286651		22.537792
TA TS&W International Equity Initial Class		48,800.924		585,903		680,773		12			680,785		259,790		1.588245		13.472175
TA TS&W International Equity Service Class		290,872.865		3,728,033		4,022,772		(3	)		4,022,769		670,221		1.117687		13.122850
TA U.S. Equity Index Service Class		2,448,399.095		31,264,616		34,204,135		(1	)		34,204,134		2,521,965		13.126540		13.947190
TA WMC US Growth Initial Class		153,747.650		4,318,329		5,281,232		33			5,281,265		2,182,247		2.331741		25.976133
TA WMC US Growth Service Class		1,104,075.425		30,575,725		36,887,160		30			36,887,190		4,841,963		2.349056		25.299834
Vanguard® - Capital Growth		-		-		-		-			-		-		9.996130		9.996734
Vanguard® - Conservative Allocation		-		-		-		-			-		-		10.017464		10.018067
Vanguard® - Diversified Value		-		-		-		-			-		-		10.029067		10.029672
Vanguard® Balanced		-		-		-		-			-		-		10.018668		10.019273
Vanguard® Equity Income		-		-		-		-			-		-		10.011008		10.011612
Vanguard® Equity Index		0.025		1		1		(1	)		-		-		21.718082		22.233362
Vanguard® Global Bond Index		-		-		-		-			-		-		10.003255		10.003858
Vanguard® Growth		-		-		-		-			-		-		10.020892		10.021498
Vanguard® High Yield Bond		-		-		-		-			-		-		9.998584		9.999187
Vanguard® International		-		-		-		-			-		-		17.035388		17.439617
Vanguard® Mid-Cap Index		28,677.140		674,242		689,112		-			689,112		35,072		19.551647		20.015600
Vanguard® Moderate Allocation		-		-		-		-			-		-		10.025212		10.025816

See accompanying notes. 4

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Assets and Liabilities

December 31, 2019

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account		Net Assets		Units Outstanding		Range of Unit Values
Vanguard® Money Market		-	$	-	$	-	$	-	$	-		-	$	10.002871	$	10.003474
Vanguard® Real Estate Index		20,764.170		279,306		285,300		-		285,300		18,469		15.404460		15.769934
Vanguard® Short-Term Investment Grade		76,073.844		822,934		824,640		-		824,640		76,045		10.800536		11.056859
Vanguard® Total Bond Market Index		64,078.043		782,393		782,393		-		782,393		70,627		11.061419		11.323946
Vanguard® Total International Stock Market Index		-		-		-		-		-		-		10.064487		10.065095
Vanguard® Total Stock Market Index		-		-		-		-		-		-		10.026688		10.027294
Voya Global Perspectives Class S Shares		-		-		-		-		-		-		11.216562		11.895959
Voya Large Cap Value Class S Shares		-		-		-		-		-		-		12.302833		13.010274
Voya Strategic Allocation Conservative Class S Shares		-		-		-		-		-		-		11.168304		11.620652
Voya Strategic Allocation Moderate Class S Shares		-		-		-		-		-		-		11.748723		12.224651
Wanger International		-		-		-		-		-		-		14.110258		14.443439
Wanger USA		-		-		-		-		-		-		21.363082		21.867468

See accompanying notes. 5

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, 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, 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
Investment Income:
Reinvested Dividends		130,082			257,462			-			1,201,329			456,457
Investment Expense:
Mortality and Expense Risk and Administrative Charges		86,953			359,226			5,725			1,049,140			289,552
Net Investment Income (Loss)		43,129			(101,764	)		(5,725	)		152,189			166,905
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		674,822			2,706,336			56,876			3,110,573			-
Realized Gain (Loss) on Investments		(124,803	)		354,756			42,566			953,214			24,616
Net Realized Capital Gains (Losses) on Investments		550,019			3,061,092			99,442			4,063,787			24,616
Net Change in Unrealized Appreciation (Depreciation)		225,093			1,831,993			18,424			6,421,324			1,074,292
Net Gain (Loss) on Investment		775,112			4,893,085			117,866			10,485,111			1,098,908
Net Increase (Decrease) in Net Assets Resulting from Operations		818,241			4,791,321			112,141			10,637,300			1,265,813
Increase (Decrease) in Net Assets from Contract Transactions		12,257			(2,531,696	)		(92,511	)		1,896,900			955,546
Total Increase (Decrease) in Net Assets		830,498			2,259,625			19,630			12,534,200			2,221,359
Net Assets as of December 31, 2019:	$	5,775,013		$	24,808,664		$	398,618		$	66,817,584		$	17,729,897

See Accompanying Notes. ⁽¹⁾  See Footnote 1 6

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	American Funds - Growth Class 2 Shares			American Funds - Growth- Income Class 2 Shares			American Funds - International Class 2 Shares			DFA VA Equity Allocation		DFA VA Global Bond
	Subaccount			Subaccount			Subaccount			Subaccount(1)		Subaccount(1)
Net Assets as of December 31, 2017:	$	43,786,720		$	31,707,232		$	17,419,416		$	-	$	-
Investment Income:
Reinvested Dividends		214,820			455,028			520,971			-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		844,766			531,638			417,448			-		-
Net Investment Income (Loss)		(629,946	)		(76,610	)		103,523			-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		4,661,468			1,994,012			847,593			-		-
Realized Gain (Loss) on Investments		1,498,128			882,708			121,259			-		-
Net Realized Capital Gains (Losses) on Investments		6,159,596			2,876,720			968,852			-		-
Net Change in Unrealized Appreciation (Depreciation)		(6,779,314	)		(4,022,359	)		(5,968,544	)		-		-
Net Gain (Loss) on Investment		(619,718	)		(1,145,639	)		(4,999,692	)		-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,249,664	)		(1,222,249	)		(4,896,169	)		-		-
Increase (Decrease) in Net Assets from Contract Transactions		927,421			(924,635	)		15,994,922			-		-
Total Increase (Decrease) in Net Assets		(322,243	)		(2,146,884	)		11,098,753			-		-
Net Assets as of December 31, 2018:	$	43,464,477		$	29,560,348		$	28,518,169		$	-	$	-
Investment Income:
Reinvested Dividends		479,711			700,089			550,335			-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,008,244			682,961			615,500			-		-
Net Investment Income (Loss)		(528,533	)		17,128			(65,165	)		-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		6,241,646			3,900,466			883,652			-		-
Realized Gain (Loss) on Investments		951,689			471,189			179,650			-		-
Net Realized Capital Gains (Losses) on Investments		7,193,335			4,371,655			1,063,302			-		-
Net Change in Unrealized Appreciation (Depreciation)		7,847,420			3,634,725			5,519,753			-		-
Net Gain (Loss) on Investment		15,040,755			8,006,380			6,583,055			-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		14,512,222			8,023,508			6,517,890			-		-
Increase (Decrease) in Net Assets from Contract Transactions		14,879,462			8,405,861			5,826,968			-		-
Total Increase (Decrease) in Net Assets		29,391,684			16,429,369			12,344,858			-		-
Net Assets as of December 31, 2019:	$	72,856,161		$	45,989,717		$	40,863,027		$	-	$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 7

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	DFA VA Global Moderate Allocation		DFA VA International Small		DFA VA International Value		DFA VA Short-Term Fixed		DFA VA U.S. Large Value
	Subaccount(1)		Subaccount(1)		Subaccount(1)		Subaccount(1)		Subaccount(1)
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:	$	-	$	-	$	-	$	-	$	-
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, 2019:	$	-	$	-	$	-	$	-	$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 8

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	DFA VA U.S. Targeted Value		Fidelity® VIP Balanced Service Class 2			Fidelity® VIP Contrafund® Initial Class		Fidelity® VIP Contrafund® Service Class 2			Fidelity® VIP Equity-Income Service Class 2
	Subaccount(1)		Subaccount			Subaccount		Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	-	$	24,492,159		$	-	$	44,958,123		$	761,780
Investment Income:
Reinvested Dividends		-		361,168			-		194,833			11,958
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		372,196			-		656,860			9,534
Net Investment Income (Loss)		-		(11,028	)		-		(462,027	)		2,424
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		1,287,747			-		3,963,223			34,596
Realized Gain (Loss) on Investments		-		573,253			-		248,190			31,075
Net Realized Capital Gains (Losses) on Investments		-		1,861,000			-		4,211,413			65,671
Net Change in Unrealized Appreciation (Depreciation)		-		(3,641,031	)		-		(7,187,985	)		(122,221	)
Net Gain (Loss) on Investment		-		(1,780,031	)		-		(2,976,572	)		(56,550	)
Net Increase (Decrease) in Net Assets Resulting from Operations		-		(1,791,059	)		-		(3,438,599	)		(54,126	)
Increase (Decrease) in Net Assets from Contract Transactions		-		4,007,803			-		(4,374,193	)		(205,014	)
Total Increase (Decrease) in Net Assets		-		2,216,744			-		(7,812,792	)		(259,140	)
Net Assets as of December 31, 2018:	$	-	$	26,708,903		$	-	$	37,145,331		$	502,640
Investment Income:
Reinvested Dividends		-		499,219			-		119,544			9,761
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		424,097			-		693,045			7,786
Net Investment Income (Loss)		-		75,122			-		(573,501	)		1,975
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		1,430,559			-		4,996,931			35,911
Realized Gain (Loss) on Investments		-		369,756			-		8,042			331
Net Realized Capital Gains (Losses) on Investments		-		1,800,315			-		5,004,973			36,242
Net Change in Unrealized Appreciation (Depreciation)		-		4,319,284			-		7,811,782			82,470
Net Gain (Loss) on Investment		-		6,119,599			-		12,816,755			118,712
Net Increase (Decrease) in Net Assets Resulting from Operations		-		6,194,721			-		12,243,254			120,687
Increase (Decrease) in Net Assets from Contract Transactions		-		1,868,554			-		14,950,261			(54,982	)
Total Increase (Decrease) in Net Assets		-		8,063,275			-		27,193,515			65,705
Net Assets as of December 31, 2019:	$	-	$	34,772,178		$	-	$	64,338,846		$	568,345

See Accompanying Notes. ⁽¹⁾  See Footnote 1 9

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Fidelity® VIP Growth Service Class 2			Fidelity® VIP Growth Opportunities Service Class 2			Fidelity® VIP Mid Cap Initial Class		Fidelity® VIP Mid Cap Service Class 2			Fidelity® VIP Value Strategies Initial Class
	Subaccount			Subaccount			Subaccount		Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	1,003,079		$	2,289		$	-	$	36,379,914		$	27,025
Investment Income:
Reinvested Dividends		425			2			-		117,070			256
Investment Expense:
Mortality and Expense Risk and Administrative Charges		14,959			35			-		474,371			171
Net Investment Income (Loss)		(14,534	)		(33	)		-		(357,301	)		85
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		147,043			135			-		3,138,834			1,183
Realized Gain (Loss) on Investments		62,060			61			-		810,380			(4	)
Net Realized Capital Gains (Losses) on Investments		209,103			196			-		3,949,214			1,179
Net Change in Unrealized Appreciation (Depreciation)		(203,388	)		73			-		(7,390,890	)		(6,090	)
Net Gain (Loss) on Investment		5,715			269			-		(3,441,676	)		(4,911	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(8,819	)		236			-		(3,798,977	)		(4,826	)
Increase (Decrease) in Net Assets from Contract Transactions		(86,747	)		(82	)		-		(12,187,209	)		(4	)
Total Increase (Decrease) in Net Assets		(95,566	)		154			-		(15,986,186	)		(4,830	)
Net Assets as of December 31, 2018:	$	907,513		$	2,443		$	-	$	20,393,728		$	22,195
Investment Income:
Reinvested Dividends		568			-			-		174,074			413
Investment Expense:
Mortality and Expense Risk and Administrative Charges		14,904			40			-		357,956			167
Net Investment Income (Loss)		(14,336	)		(40	)		-		(183,882	)		246
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		64,741			233			-		2,788,485			2,352
Realized Gain (Loss) on Investments		27,381			72			-		(369,387	)		(352	)
Net Realized Capital Gains (Losses) on Investments		92,122			305			-		2,419,098			2,000
Net Change in Unrealized Appreciation (Depreciation)		207,280			639			-		2,407,923			4,970
Net Gain (Loss) on Investment		299,402			944			-		4,827,021			6,970
Net Increase (Decrease) in Net Assets Resulting from Operations		285,066			904			-		4,643,139			7,216
Increase (Decrease) in Net Assets from Contract Transactions		(46,849	)		(89	)		-		2,155,682			(3,106	)
Total Increase (Decrease) in Net Assets		238,217			815			-		6,798,821			4,110
Net Assets as of December 31, 2019:	$	1,145,730		$	3,258		$	-	$	27,192,549		$	26,305

See Accompanying Notes. ⁽¹⁾  See Footnote 1 10

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Fidelity® VIP Value Strategies Service Class 2			Franklin Allocation Class 4 Shares			Franklin Income Class 2 Shares			Franklin Mutual Shares Class 2 Shares			Franklin Templeton Foreign Class 2 Shares
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	12,836,585		$	3,384,945		$	3,318,178		$	705,918		$	1,730,862
Investment Income:
Reinvested Dividends		79,421			90,070			148,761			14,250			40,794
Investment Expense:
Mortality and Expense Risk and Administrative Charges		169,353			48,850			44,514			9,449			22,073
Net Investment Income (Loss)		(89,932	)		41,220			104,247			4,801			18,721
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		517,444			73,713			-			22,189			-
Realized Gain (Loss) on Investments		(551,402	)		(33,039	)		46,068			34,210			25,332
Net Realized Capital Gains (Losses) on Investments		(33,958	)		40,674			46,068			56,399			25,332
Net Change in Unrealized Appreciation (Depreciation)		(1,971,653	)		(378,166	)		(307,450	)		(122,741	)		(295,315	)
Net Gain (Loss) on Investment		(2,005,611	)		(337,492	)		(261,382	)		(66,342	)		(269,983	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(2,095,543	)		(296,272	)		(157,135	)		(61,541	)		(251,262	)
Increase (Decrease) in Net Assets from Contract Transactions		(2,130,959	)		(786,401	)		(583,402	)		(133,400	)		(299,581	)
Total Increase (Decrease) in Net Assets		(4,226,502	)		(1,082,673	)		(740,537	)		(194,941	)		(550,843	)
Net Assets as of December 31, 2018:	$	8,610,083		$	2,302,272		$	2,577,641		$	510,977		$	1,180,019
Investment Income:
Reinvested Dividends		170,427			79,165			136,932			8,972			19,849
Investment Expense:
Mortality and Expense Risk and Administrative Charges		166,826			37,763			37,573			7,890			16,593
Net Investment Income (Loss)		3,601			41,402			99,359			1,082			3,256
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,048,705			152,299			41,386			47,975			11,848
Realized Gain (Loss) on Investments		(490,258	)		(59,629	)		38,282			20,367			(7,115	)
Net Realized Capital Gains (Losses) on Investments		558,447			92,670			79,668			68,342			4,733
Net Change in Unrealized Appreciation (Depreciation)		2,526,881			251,153			165,989			29,283			106,793
Net Gain (Loss) on Investment		3,085,328			343,823			245,657			97,625			111,526
Net Increase (Decrease) in Net Assets Resulting from Operations		3,088,929			385,225			345,016			98,707			114,782
Increase (Decrease) in Net Assets from Contract Transactions		1,401,865			(420,796	)		(624,340	)		(88,516	)		(210,181	)
Total Increase (Decrease) in Net Assets		4,490,794			(35,571	)		(279,324	)		10,191			(95,399	)
Net Assets as of December 31, 2019:	$	13,100,877		$	2,266,701		$	2,298,317		$	521,168		$	1,084,620

See Accompanying Notes. ⁽¹⁾  See Footnote 1 11

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Invesco V.I. American Franchise Series II Shares			Janus Henderson - Enterprise Service Shares			Janus Henderson - Global Research Service Shares			Janus Henderson - Mid Cap Value Service Shares			JPMorgan Insurance Trust Core Bond Class 1 Shares
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	200,731		$	356,554		$	389,774		$	2,549		$	480,107
Investment Income:
Reinvested Dividends		-			431			3,658			22			10,598
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,133			4,672			5,926			33			6,309
Net Investment Income (Loss)		(3,133	)		(4,241	)		(2,268	)		(11	)		4,289
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		13,559			15,818			-			214			722
Realized Gain (Loss) on Investments		5,478			49,221			33,930			21			(3,586	)
Net Realized Capital Gains (Losses) on Investments		19,037			65,039			33,930			235			(2,864	)
Net Change in Unrealized Appreciation (Depreciation)		(25,406	)		(63,250	)		(62,214	)		(592	)		(8,294	)
Net Gain (Loss) on Investment		(6,369	)		1,789			(28,284	)		(357	)		(11,158	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(9,502	)		(2,452	)		(30,552	)		(368	)		(6,869	)
Increase (Decrease) in Net Assets from Contract Transactions		(9,237	)		(58,148	)		(61,275	)		(92	)		(39,877	)
Total Increase (Decrease) in Net Assets		(18,739	)		(60,600	)		(91,827	)		(460	)		(46,746	)
Net Assets as of December 31, 2018:	$	181,992		$	295,954		$	297,947		$	2,089		$	433,361
Investment Income:
Reinvested Dividends		-			184			2,906			35			10,669
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,836			5,007			5,266			33			5,900
Net Investment Income (Loss)		(2,836	)		(4,823	)		(2,360	)		2			4,769
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		29,415			22,027			20,765			176			-
Realized Gain (Loss) on Investments		24,591			5,368			9,266			(3	)		(5,296	)
Net Realized Capital Gains (Losses) on Investments		54,006			27,395			30,031			173			(5,296	)
Net Change in Unrealized Appreciation (Depreciation)		916			75,440			50,271			393			28,605
Net Gain (Loss) on Investment		54,922			102,835			80,302			566			23,309
Net Increase (Decrease) in Net Assets Resulting from Operations		52,086			98,012			77,942			568			28,078
Increase (Decrease) in Net Assets from Contract Transactions		(72,716	)		(5,614	)		(15,171	)		(78	)		(34,896	)
Total Increase (Decrease) in Net Assets		(20,630	)		92,398			62,771			490			(6,818	)
Net Assets as of December 31, 2019:	$	161,362		$	388,352		$	360,718		$	2,579		$	426,543

See Accompanying Notes. ⁽¹⁾  See Footnote 1 12

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	JPMorgan Insurance Trust Mid Cap Value Class 1 Shares			JPMorgan Insurance Trust Small Cap Core Class 1 Shares			JPMorgan Insurance Trust U.S. Equity Class 1 Shares			MFS® New Discovery Service Class			MFS® Total Return Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	181,699		$	8,950		$	85,661		$	1,753,527		$	1,277,761
Investment Income:
Reinvested Dividends		1,735			35			713			-			21,348
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,313			128			1,143			26,331			15,868
Net Investment Income (Loss)		(578	)		(93	)		(430	)		(26,331	)		5,480
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,900			593			10,124			255,969			49,157
Realized Gain (Loss) on Investments		1,420			169			1,103			72,253			62,041
Net Realized Capital Gains (Losses) on Investments		4,320			762			11,227			328,222			111,198
Net Change in Unrealized Appreciation (Depreciation)		(27,297	)		(1,824	)		(17,022	)		(318,017	)		(193,908	)
Net Gain (Loss) on Investment		(22,977	)		(1,062	)		(5,795	)		10,205			(82,710	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(23,555	)		(1,155	)		(6,225	)		(16,126	)		(77,230	)
Increase (Decrease) in Net Assets from Contract Transactions		1			(158	)		(1,080	)		(257,048	)		(263,934	)
Total Increase (Decrease) in Net Assets		(23,554	)		(1,313	)		(7,305	)		(273,174	)		(341,164	)
Net Assets as of December 31, 2018:	$	158,145		$	7,637		$	78,356		$	1,480,353		$	936,597
Investment Income:
Reinvested Dividends		2,922			35			772			-			21,097
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,347			64			1,183			25,659			14,103
Net Investment Income (Loss)		575			(29	)		(411	)		(25,659	)		6,994
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		12,133			1,007			6,331			351,201			26,973
Realized Gain (Loss) on Investments		1,414			2,355			1,136			24,749			25,596
Net Realized Capital Gains (Losses) on Investments		13,547			3,362			7,467			375,950			52,569
Net Change in Unrealized Appreciation (Depreciation)		25,652			(2,189	)		16,353			211,958			106,361
Net Gain (Loss) on Investment		39,199			1,173			23,820			587,908			158,930
Net Increase (Decrease) in Net Assets Resulting from Operations		39,774			1,144			23,409			562,249			165,924
Increase (Decrease) in Net Assets from Contract Transactions		(2	)		(7,615	)		(1,184	)		(144,895	)		(98,402	)
Total Increase (Decrease) in Net Assets		39,772			(6,471	)		22,225			417,354			67,522
Net Assets as of December 31, 2019:	$	197,917		$	1,166		$	100,581		$	1,897,707		$	1,004,119

See Accompanying Notes. ⁽¹⁾  See Footnote 1 13

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	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			TA Aegon U.S. Government Securities Initial Class
	Subaccount			Subaccount(1)			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	3,637,485		$	-		$	130,755		$	7,261,724		$	284,854
Investment Income:
Reinvested Dividends		102,926			-			8,672			420,563			7,940
Investment Expense:
Mortality and Expense Risk and Administrative Charges		71,328			1,906			1,675			98,037			3,664
Net Investment Income (Loss)		31,598			(1,906	)		6,997			322,526			4,276
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,086,356			-			-			-			-
Realized Gain (Loss) on Investments		56,878			563			(161	)		(49,599	)		(4,136	)
Net Realized Capital Gains (Losses) on Investments		1,143,234			563			(161	)		(49,599	)		(4,136	)
Net Change in Unrealized Appreciation (Depreciation)		(1,588,743	)		(30,108	)		(11,624	)		(549,863	)		(3,553	)
Net Gain (Loss) on Investment		(445,509	)		(29,545	)		(11,785	)		(599,462	)		(7,689	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(413,911	)		(31,451	)		(4,788	)		(276,936	)		(3,413	)
Increase (Decrease) in Net Assets from Contract Transactions		1,648,639			617,558			6,393			(600,836	)		(20,356	)
Total Increase (Decrease) in Net Assets		1,234,728			586,107			1,605			(877,772	)		(23,769	)
Net Assets as of December 31, 2018:	$	4,872,213		$	586,107		$	132,360		$	6,383,952		$	261,085
Investment Income:
Reinvested Dividends		95,026			1,550			5,193			438,157			3,923
Investment Expense:
Mortality and Expense Risk and Administrative Charges		73,533			9,482			1,148			99,042			2,977
Net Investment Income (Loss)		21,493			(7,932	)		4,045			339,115			946
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			1,152			-			-			-
Realized Gain (Loss) on Investments		(646,986	)		1,407			(1,895	)		(19,672	)		(14,748	)
Net Realized Capital Gains (Losses) on Investments		(646,986	)		2,559			(1,895	)		(19,672	)		(14,748	)
Net Change in Unrealized Appreciation (Depreciation)		1,251,903			139,100			11,786			507,376			24,353
Net Gain (Loss) on Investment		604,917			141,659			9,891			487,704			9,605
Net Increase (Decrease) in Net Assets Resulting from Operations		626,410			133,727			13,936			826,819			10,551
Increase (Decrease) in Net Assets from Contract Transactions		(851,589	)		433,624			(63,368	)		685,090			(85,093	)
Total Increase (Decrease) in Net Assets		(225,179	)		567,351			(49,432	)		1,511,909			(74,542	)
Net Assets as of December 31, 2019:	$	4,647,034		$	1,153,458		$	82,928		$	7,895,861		$	186,543

See Accompanying Notes. ⁽¹⁾  See Footnote 1 14

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	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			TA BlackRock Global Allocation Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	28,859,784		$	50,784,606		$	3,740,605		$	23,499,428		$	72,510,972
Investment Income:
Reinvested Dividends		605,379			468,554			75,090			449,849			779,559
Investment Expense:
Mortality and Expense Risk and Administrative Charges		384,569			745,431			48,508			343,365			971,232
Net Investment Income (Loss)		220,810			(276,877	)		26,582			106,484			(191,673	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			1,797,251			-			-			752,935
Realized Gain (Loss) on Investments		(1,792,706	)		801,343			89,897			757,150			1,202,062
Net Realized Capital Gains (Losses) on Investments		(1,792,706	)		2,598,594			89,897			757,150			1,954,997
Net Change in Unrealized Appreciation (Depreciation)		1,506,881			(6,475,837	)		(557,592	)		(3,919,975	)		(7,944,965	)
Net Gain (Loss) on Investment		(285,825	)		(3,877,243	)		(467,695	)		(3,162,825	)		(5,989,968	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(65,015	)		(4,154,120	)		(441,113	)		(3,056,341	)		(6,181,641	)
Increase (Decrease) in Net Assets from Contract Transactions		30,130,227			10,340,926			(281,645	)		(381,469	)		(5,581,528	)
Total Increase (Decrease) in Net Assets		30,065,212			6,186,806			(722,758	)		(3,437,810	)		(11,763,169	)
Net Assets as of December 31, 2018:	$	58,924,996		$	56,971,412		$	3,017,847		$	20,061,618		$	60,747,803
Investment Income:
Reinvested Dividends		605,992			830,847			80,654			513,316			619,928
Investment Expense:
Mortality and Expense Risk and Administrative Charges		535,571			881,128			45,168			326,421			895,879
Net Investment Income (Loss)		70,421			(50,281	)		35,486			186,895			(275,951	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			1,551,695			495,573			3,546,190			2,716,588
Realized Gain (Loss) on Investments		761,772			852,176			128,894			629,894			845,530
Net Realized Capital Gains (Losses) on Investments		761,772			2,403,871			624,467			4,176,084			3,562,118
Net Change in Unrealized Appreciation (Depreciation)		931,202			7,521,431			(17,370	)		20,273			6,456,229
Net Gain (Loss) on Investment		1,692,974			9,925,302			607,097			4,196,357			10,018,347
Net Increase (Decrease) in Net Assets Resulting from Operations		1,763,395			9,875,021			642,583			4,383,252			9,742,396
Increase (Decrease) in Net Assets from Contract Transactions		(27,484,200	)		8,726,646			(366,456	)		(1,193,109	)		(2,335,309	)
Total Increase (Decrease) in Net Assets		(25,720,805	)		18,601,667			276,127			3,190,143			7,407,087
Net Assets as of December 31, 2019:	$	33,204,191		$	75,573,079		$	3,293,974		$	23,251,761		$	68,154,890

See Accompanying Notes. ⁽¹⁾  See Footnote 1 15

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA BlackRock Global Allocation Managed Risk -Balanced Service Class			TA BlackRock Global Allocation Managed Risk -Growth Service Class			TA BlackRock Global Real Estate Securities Initial Class			TA BlackRock Global Real Estate Securities Service Class
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	9,425,985		$	9,906,384		$	22,719		$	6,088,478
Investment Income:
Reinvested Dividends		133,224			128,399			1,893			454,929
Investment Expense:
Mortality and Expense Risk and Administrative Charges		145,503			133,687			300			85,319
Net Investment Income (Loss)		(12,279	)		(5,288	)		1,593			369,610
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			84,205			-			-
Realized Gain (Loss) on Investments		25,929			52,603			(380	)		(48,895	)
Net Realized Capital Gains (Losses) on Investments		25,929			136,808			(380	)		(48,895	)
Net Change in Unrealized Appreciation (Depreciation)		(1,096,332	)		(1,304,346	)		(3,751	)		(1,004,230	)
Net Gain (Loss) on Investment		(1,070,403	)		(1,167,538	)		(4,131	)		(1,053,125	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,082,682	)		(1,172,826	)		(2,538	)		(683,515	)
Increase (Decrease) in Net Assets from Contract Transactions		3,534,800			444,846			(1,105	)		(614,910	)
Total Increase (Decrease) in Net Assets		2,452,118			(727,980	)		(3,643	)		(1,298,425	)
Net Assets as of December 31, 2018:	$	11,878,103		$	9,178,404		$	19,076		$	4,790,053
Investment Income:
Reinvested Dividends		409,225			318,477			141			34,701
Investment Expense:
Mortality and Expense Risk and Administrative Charges		176,566			127,074			246			85,402
Net Investment Income (Loss)		232,659			191,403			(105	)		(50,701	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			-			-
Realized Gain (Loss) on Investments		16,670			21,409			(1,605	)		22,598
Net Realized Capital Gains (Losses) on Investments		16,670			21,409			(1,605	)		22,598
Net Change in Unrealized Appreciation (Depreciation)		1,452,339			1,245,846			5,648			1,156,607
Net Gain (Loss) on Investment		1,469,009			1,267,255			4,043			1,179,205
Net Increase (Decrease) in Net Assets Resulting from Operations		1,701,668			1,458,658			3,938			1,128,504
Increase (Decrease) in Net Assets from Contract Transactions		1,653,891			(374,823	)		(7,791	)		488,497
Total Increase (Decrease) in Net Assets		3,355,559			1,083,835			(3,853	)		1,617,001
Net Assets as of December 31, 2019:	$	15,233,662		$	10,262,239		$	15,223		$	6,407,054

See Accompanying Notes. ⁽¹⁾  See Footnote 1 16

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA BlackRock Government Money Market Initial Class			TA BlackRock Government Money Market Service Class			TA BlackRock iShares Edge 100 Service Class			TA BlackRock iShares Edge 40 Initial Class			TA BlackRock iShares Edge 40 Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	165,775		$	22,509,391		$	21,047,568		$	63,870		$	22,153,340
Investment Income:
Reinvested Dividends		4,093			207,917			251,318			1,207			355,536
Investment Expense:
Mortality and Expense Risk and Administrative Charges		3,108			409,190			196,152			874			301,739
Net Investment Income (Loss)		985			(201,273	)		55,166			333			53,797
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			245,520			-			-
Realized Gain (Loss) on Investments		-			-			79,313			261			366,370
Net Realized Capital Gains (Losses) on Investments		-			-			324,833			261			366,370
Net Change in Unrealized Appreciation (Depreciation)		-			-			(1,717,339	)		(4,084	)		(1,655,710	)
Net Gain (Loss) on Investment		-			-			(1,392,506	)		(3,823	)		(1,289,340	)
Net Increase (Decrease) in Net Assets Resulting from Operations		985			(201,273	)		(1,337,340	)		(3,490	)		(1,235,543	)
Increase (Decrease) in Net Assets from Contract Transactions		65,491			(1,841,113	)		478,814			(597	)		(1,124,179	)
Total Increase (Decrease) in Net Assets		66,476			(2,042,386	)		(858,526	)		(4,087	)		(2,359,722	)
Net Assets as of December 31, 2018:	$	232,251		$	20,467,005		$	20,189,042		$	59,783		$	19,793,618
Investment Income:
Reinvested Dividends		3,696			429,667			353,708			1,317			424,317
Investment Expense:
Mortality and Expense Risk and Administrative Charges		2,617			340,276			209,064			843			298,265
Net Investment Income (Loss)		1,079			89,391			144,644			474			126,052
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			688,845			7,791			2,846,163
Realized Gain (Loss) on Investments		-			-			72,227			1,337			261,586
Net Realized Capital Gains (Losses) on Investments		-			-			761,072			9,128			3,107,749
Net Change in Unrealized Appreciation (Depreciation)		-			-			3,868,417			(1,826	)		(590,556	)
Net Gain (Loss) on Investment		-			-			4,629,489			7,302			2,517,193
Net Increase (Decrease) in Net Assets Resulting from Operations		1,079			89,391			4,774,133			7,776			2,643,245
Increase (Decrease) in Net Assets from Contract Transactions		(54,267	)		8,830,319			618,906			(6,364	)		(601,584	)
Total Increase (Decrease) in Net Assets		(53,188	)		8,919,710			5,393,039			1,412			2,041,661
Net Assets as of December 31, 2019:	$	179,063		$	29,386,715		$	25,582,081		$	61,195		$	21,835,279

See Accompanying Notes. ⁽¹⁾  See Footnote 1 17

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA BlackRock iShares Edge 50 Service Class			TA BlackRock iShares Edge 75 Service Class			TA BlackRock Tactical Allocation Service Class			TA Greystone International Growth Initial Class			TA Greystone International Growth Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	8,137,482		$	12,688,035		$	108,003,935		$	113,918		$	23,218,498
Investment Income:
Reinvested Dividends		90,372			123,081			1,022,745			1,329			90,149
Investment Expense:
Mortality and Expense Risk and Administrative Charges		125,760			141,181			1,456,902			1,498			252,575
Net Investment Income (Loss)		(35,388	)		(18,100	)		(434,157	)		(169	)		(162,426	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		53,502			70,826			4,640,313			565			48,724
Realized Gain (Loss) on Investments		70,582			75,267			539,732			1,177			1,765,157
Net Realized Capital Gains (Losses) on Investments		124,084			146,093			5,180,045			1,742			1,813,881
Net Change in Unrealized Appreciation (Depreciation)		(569,302	)		(930,181	)		(10,565,567	)		(22,750	)		(4,165,463	)
Net Gain (Loss) on Investment		(445,218	)		(784,088	)		(5,385,522	)		(21,008	)		(2,351,582	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(480,606	)		(802,188	)		(5,819,679	)		(21,177	)		(2,514,008	)
Increase (Decrease) in Net Assets from Contract Transactions		5,730,000			2,432,134			(7,208,593	)		(5,729	)		(13,843,872	)
Total Increase (Decrease) in Net Assets		5,249,394			1,629,946			(13,028,272	)		(26,906	)		(16,357,880	)
Net Assets as of December 31, 2018:	$	13,386,876		$	14,317,981		$	94,975,663		$	87,012		$	6,860,618
Investment Income:
Reinvested Dividends		187,335			177,101			2,145,536			1,653			99,354
Investment Expense:
Mortality and Expense Risk and Administrative Charges		245,341			200,838			1,368,545			1,380			103,263
Net Investment Income (Loss)		(58,006	)		(23,737	)		776,991			273			(3,909	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		31,222			69,168			4,529,129			16,600			1,217,225
Realized Gain (Loss) on Investments		234,468			77,063			507,505			1,864			(56,369	)
Net Realized Capital Gains (Losses) on Investments		265,690			146,231			5,036,634			18,464			1,160,856
Net Change in Unrealized Appreciation (Depreciation)		2,276,236			2,972,647			8,315,536			3,760			526,160
Net Gain (Loss) on Investment		2,541,926			3,118,878			13,352,170			22,224			1,687,016
Net Increase (Decrease) in Net Assets Resulting from Operations		2,483,920			3,095,141			14,129,161			22,497			1,683,107
Increase (Decrease) in Net Assets from Contract Transactions		11,066,504			3,994,406			(11,159,656	)		4,215			(464,676	)
Total Increase (Decrease) in Net Assets		13,550,424			7,089,547			2,969,505			26,712			1,218,431
Net Assets as of December 31, 2019:	$	26,937,300		$	21,407,528		$	97,945,168		$	113,724		$	8,079,049

See Accompanying Notes. ⁽¹⁾  See Footnote 1 18

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	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			TA JPMorgan Asset Allocation - Conservative Initial Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	385,013		$	84,726,412		$	14,086		$	4,956,165		$	17,848
Investment Income:
Reinvested Dividends		4,751			1,323,728			43			-			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		16,573			1,247,526			342			138,383			31
Net Investment Income (Loss)		(11,822	)		76,202			(299	)		(138,383	)		(31	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,667			2,180,292			3,182			649,610			-
Realized Gain (Loss) on Investments		(18,474	)		2,012,640			1,481			99,224			568
Net Realized Capital Gains (Losses) on Investments		(15,807	)		4,192,932			4,663			748,834			568
Net Change in Unrealized Appreciation (Depreciation)		(221,589	)		(5,638,588	)		(11,088	)		(1,866,694	)		(810	)
Net Gain (Loss) on Investment		(237,396	)		(1,445,656	)		(6,425	)		(1,117,860	)		(242	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(249,218	)		(1,369,454	)		(6,724	)		(1,256,243	)		(273	)
Increase (Decrease) in Net Assets from Contract Transactions		1,177,469			2,490,154			57,127			9,465,697			(17,575	)
Total Increase (Decrease) in Net Assets		928,251			1,120,700			50,403			8,209,454			(17,848	)
Net Assets as of December 31, 2018:	$	1,313,264		$	85,847,112		$	64,489		$	13,165,619		$	-
Investment Income:
Reinvested Dividends		31,218			1,321,528			14			-			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		32,327			1,328,572			266			250,524			-
Net Investment Income (Loss)		(1,109	)		(7,044	)		(252	)		(250,524	)		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			4,319,553			1,044			958,651			-
Realized Gain (Loss) on Investments		(12,986	)		2,484,429			2,694			492,818			-
Net Realized Capital Gains (Losses) on Investments		(12,986	)		6,803,982			3,738			1,451,469			-
Net Change in Unrealized Appreciation (Depreciation)		425,853			10,491,458			12,601			3,441,382			-
Net Gain (Loss) on Investment		412,867			17,295,440			16,339			4,892,851			-
Net Increase (Decrease) in Net Assets Resulting from Operations		411,758			17,288,396			16,087			4,642,327			-
Increase (Decrease) in Net Assets from Contract Transactions		2,530,239			(779,199	)		(59,306	)		2,314,659			-
Total Increase (Decrease) in Net Assets		2,941,997			16,509,197			(43,219	)		6,956,986			-
Net Assets as of December 31, 2019:	$	4,255,261		$	102,356,309		$	21,270		$	20,122,605		$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 19

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA JPMorgan Asset Allocation - Conservative Service Class			TA JPMorgan Asset Allocation - Growth Initial Class			TA JPMorgan Asset Allocation - Growth Service Class			TA JPMorgan Asset Allocation - Moderate Initial Class
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	67,550,887		$	37,480		$	8,452,268		$	724,297
Investment Income:
Reinvested Dividends		1,058,840			713			146,826			12,074
Investment Expense:
Mortality and Expense Risk and Administrative Charges		900,570			526			122,608			9,629
Net Investment Income (Loss)		158,270			187			24,218			2,445
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,784,627			2,483			586,919			32,842
Realized Gain (Loss) on Investments		(33,799	)		143			373,069			6,833
Net Realized Capital Gains (Losses) on Investments		2,750,828			2,626			959,988			39,675
Net Change in Unrealized Appreciation (Depreciation)		(6,624,071	)		(7,174	)		(1,990,201	)		(86,965	)
Net Gain (Loss) on Investment		(3,873,243	)		(4,548	)		(1,030,213	)		(47,290	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,714,973	)		(4,361	)		(1,005,995	)		(44,845	)
Increase (Decrease) in Net Assets from Contract Transactions		(1,917,044	)		(1	)		(633,474	)		(34,981	)
Total Increase (Decrease) in Net Assets		(5,632,017	)		(4,362	)		(1,639,469	)		(79,826	)
Net Assets as of December 31, 2018:	$	61,918,870		$	33,118		$	6,812,799		$	644,471
Investment Income:
Reinvested Dividends		1,494,732			653			121,913			7,780
Investment Expense:
Mortality and Expense Risk and Administrative Charges		855,946			521			113,659			6,591
Net Investment Income (Loss)		638,786			132			8,254			1,189
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,361,878			3,458			763,104			20,163
Realized Gain (Loss) on Investments		(337,782	)		107			221,436			55,202
Net Realized Capital Gains (Losses) on Investments		2,024,096			3,565			984,540			75,365
Net Change in Unrealized Appreciation (Depreciation)		4,564,831			4,354			755,872			(13,375	)
Net Gain (Loss) on Investment		6,588,927			7,919			1,740,412			61,990
Net Increase (Decrease) in Net Assets Resulting from Operations		7,227,713			8,051			1,748,666			63,179
Increase (Decrease) in Net Assets from Contract Transactions		(5,320,318	)		-			1,261,403			(329,189	)
Total Increase (Decrease) in Net Assets		1,907,395			8,051			3,010,069			(266,010	)
Net Assets as of December 31, 2019:	$	63,826,265		$	41,169		$	9,822,868		$	378,461

See Accompanying Notes. ⁽¹⁾  See Footnote 1 20

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA JPMorgan Asset Allocation - Moderate Service Class			TA JPMorgan Asset Allocation - Moderate Growth Initial Class			TA JPMorgan Asset Allocation - Moderate Growth Service Class			TA JPMorgan Core Bond Service Class
	Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	300,651,662		$	447,561		$	200,756,348		$	30,045,745
Investment Income:
Reinvested Dividends		4,688,662			8,397			3,253,362			880,462
Investment Expense:
Mortality and Expense Risk and Administrative Charges		4,131,881			5,836			2,803,047			423,530
Net Investment Income (Loss)		556,781			2,561			450,315			456,932
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		14,756,282			23,292			10,374,870			-
Realized Gain (Loss) on Investments		3,580,999			630			4,192,277			(181,153	)
Net Realized Capital Gains (Losses) on Investments		18,337,281			23,922			14,567,147			(181,153	)
Net Change in Unrealized Appreciation (Depreciation)		(38,994,466	)		(63,524	)		(31,733,959	)		(720,722	)
Net Gain (Loss) on Investment		(20,657,185	)		(39,602	)		(17,166,812	)		(901,875	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(20,100,404	)		(37,041	)		(16,716,497	)		(444,943	)
Increase (Decrease) in Net Assets from Contract Transactions		804,846			(70	)		(9,717,118	)		557,592
Total Increase (Decrease) in Net Assets		(19,295,558	)		(37,111	)		(26,433,615	)		112,649
Net Assets as of December 31, 2018:	$	281,356,104		$	410,450		$	174,322,733		$	30,158,394
Investment Income:
Reinvested Dividends		5,864,491			6,991			3,539,545			894,030
Investment Expense:
Mortality and Expense Risk and Administrative Charges		4,058,421			3,546			2,575,688			513,763
Net Investment Income (Loss)		1,806,070			3,445			963,857			380,267
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		17,132,445			26,910			15,583,435			-
Realized Gain (Loss) on Investments		1,497,566			21,186			1,770,773			62,255
Net Realized Capital Gains (Losses) on Investments		18,630,011			48,096			17,354,208			62,255
Net Change in Unrealized Appreciation (Depreciation)		20,077,627			(5,426	)		12,005,317			1,975,602
Net Gain (Loss) on Investment		38,707,638			42,670			29,359,525			2,037,857
Net Increase (Decrease) in Net Assets Resulting from Operations		40,513,708			46,115			30,323,382			2,418,124
Increase (Decrease) in Net Assets from Contract Transactions		(6,992,242	)		(407,763	)		(16,921,764	)		8,855,368
Total Increase (Decrease) in Net Assets		33,521,466			(361,648	)		13,401,618			11,273,492
Net Assets as of December 31, 2019:	$	314,877,570		$	48,802		$	187,724,351		$	41,431,886

See Accompanying Notes. ⁽¹⁾  See Footnote 1 21

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA JPMorgan Enhanced Index Initial Class			TA JPMorgan Enhanced Index Service Class			TA JPMorgan International Moderate Growth Service Class			TA JPMorgan Mid Cap Value Service Class			TA JPMorgan Tactical Allocation Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	722,249		$	6,488,465		$	50,493,353		$	20,619,585		$	85,781,288
Investment Income:
Reinvested Dividends		8,098			54,038			1,067,770			116,458			1,594,724
Investment Expense:
Mortality and Expense Risk and Administrative Charges		9,262			92,021			693,539			280,117			1,108,796
Net Investment Income (Loss)		(1,164	)		(37,983	)		374,231			(163,659	)		485,928
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		31,726			268,265			499,247			418,723			2,344,426
Realized Gain (Loss) on Investments		16,019			405,153			801,360			(2,090,995	)		962,206
Net Realized Capital Gains (Losses) on Investments		47,745			673,418			1,300,607			(1,672,272	)		3,306,632
Net Change in Unrealized Appreciation (Depreciation)		(95,937	)		(1,052,337	)		(8,292,199	)		(549,617	)		(7,554,818	)
Net Gain (Loss) on Investment		(48,192	)		(378,919	)		(6,991,592	)		(2,221,889	)		(4,248,186	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(49,356	)		(416,902	)		(6,617,361	)		(2,385,548	)		(3,762,258	)
Increase (Decrease) in Net Assets from Contract Transactions		(34,496	)		(777,535	)		(1,938,414	)		(3,813,905	)		(3,969,888	)
Total Increase (Decrease) in Net Assets		(83,852	)		(1,194,437	)		(8,555,775	)		(6,199,453	)		(7,732,146	)
Net Assets as of December 31, 2018:	$	638,397		$	5,294,028		$	41,937,578		$	14,420,132		$	78,049,142
Investment Income:
Reinvested Dividends		8,203			46,932			874,084			196,687			1,708,866
Investment Expense:
Mortality and Expense Risk and Administrative Charges		8,857			74,730			601,997			249,280			1,087,881
Net Investment Income (Loss)		(654	)		(27,798	)		272,087			(52,593	)		620,985
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		80,612			579,284			3,507,575			1,553,485			1,019,815
Realized Gain (Loss) on Investments		28,454			397,231			187,879			(892,585	)		859,070
Net Realized Capital Gains (Losses) on Investments		109,066			976,515			3,695,454			660,900			1,878,885
Net Change in Unrealized Appreciation (Depreciation)		70,295			429,252			2,403,299			3,002,428			5,608,987
Net Gain (Loss) on Investment		179,361			1,405,767			6,098,753			3,663,328			7,487,872
Net Increase (Decrease) in Net Assets Resulting from Operations		178,707			1,377,969			6,370,840			3,610,735			8,108,857
Increase (Decrease) in Net Assets from Contract Transactions		(65,115	)		(982,460	)		(4,122,591	)		98,224			(3,290,918	)
Total Increase (Decrease) in Net Assets		113,592			395,509			2,248,249			3,708,959			4,817,939
Net Assets as of December 31, 2019:	$	751,989		$	5,689,537		$	44,185,827		$	18,129,091		$	82,867,081

See Accompanying Notes. ⁽¹⁾  See Footnote 1 22

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA Legg Mason Dynamic Allocation - Balanced Service Class			TA Legg Mason Dynamic Allocation - Growth Service Class			TA Levin Large Cap Value Service Class			TA Madison Diversified Income Service Class			TA Managed Risk - Balanced ETF Service Class
	Subaccount			Subaccount			Subaccount(1)			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	93,925,698		$	60,496,584		$	-		$	1,092,716		$	470,512,548
Investment Income:
Reinvested Dividends		1,225,870			715,240			-			26,495			7,722,594
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,164,897			798,332			276			22,335			6,126,246
Net Investment Income (Loss)		60,973			(83,092	)		(276	)		4,160			1,596,348
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			-			36,475			-
Realized Gain (Loss) on Investments		507,288			603,637			239			(7,148	)		3,746,811
Net Realized Capital Gains (Losses) on Investments		507,288			603,637			239			29,327			3,746,811
Net Change in Unrealized Appreciation (Depreciation)		(4,571,719	)		(3,892,092	)		(14,117	)		(71,172	)		(31,797,214	)
Net Gain (Loss) on Investment		(4,064,431	)		(3,288,455	)		(13,878	)		(41,845	)		(28,050,403	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(4,003,458	)		(3,371,547	)		(14,154	)		(37,685	)		(26,454,055	)
Increase (Decrease) in Net Assets from Contract Transactions		(9,202,697	)		(4,382,516	)		109,171			898,739			(21,595,017	)
Total Increase (Decrease) in Net Assets		(13,206,155	)		(7,754,063	)		95,017			861,054			(48,049,072	)
Net Assets as of December 31, 2018:	$	80,719,543		$	52,742,521		$	95,017		$	1,953,770		$	422,463,476
Investment Income:
Reinvested Dividends		1,340,316			749,485			1,348			72,628			8,722,126
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,107,531			745,398			4,859			54,480			5,839,315
Net Investment Income (Loss)		232,785			4,087			(3,511	)		18,148			2,882,811
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,121,949			1,883,393			1,726			123,885			11,619,068
Realized Gain (Loss) on Investments		566,463			504,872			(575	)		18,164			3,139,075
Net Realized Capital Gains (Losses) on Investments		2,688,412			2,388,265			1,151			142,049			14,758,143
Net Change in Unrealized Appreciation (Depreciation)		8,407,419			5,336,617			53,008			292,167			40,448,294
Net Gain (Loss) on Investment		11,095,831			7,724,882			54,159			434,216			55,206,437
Net Increase (Decrease) in Net Assets Resulting from Operations		11,328,616			7,728,969			50,648			452,364			58,089,248
Increase (Decrease) in Net Assets from Contract Transactions		(6,870,723	)		(4,751,635	)		720,498			3,366,867			(27,373,810	)
Total Increase (Decrease) in Net Assets		4,457,893			2,977,334			771,146			3,819,231			30,715,438
Net Assets as of December 31, 2019:	$	85,177,436		$	55,719,855		$	866,163		$	5,773,001		$	453,178,914

See Accompanying Notes. ⁽¹⁾  See Footnote 1 23

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, 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, 2017:	$	89,983,402		$	395,368,871		$	34,598,644		$	84,267		$	6,155,878
Investment Income:
Reinvested Dividends		1,519,803			6,021,010			123,458			-			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,116,734			5,114,833			466,848			1,439			106,364
Net Investment Income (Loss)		403,069			906,177			(343,390	)		(1,439	)		(106,364	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		561,839			-			1,855,715			17,738			1,335,908
Realized Gain (Loss) on Investments		555,022			2,206,422			565,114			160			374,059
Net Realized Capital Gains (Losses) on Investments		1,116,861			2,206,422			2,420,829			17,898			1,709,967
Net Change in Unrealized Appreciation (Depreciation)		(5,607,469	)		(33,664,024	)		(3,372,930	)		(12,256	)		(1,459,765	)
Net Gain (Loss) on Investment		(4,490,608	)		(31,457,602	)		(952,101	)		5,642			250,202
Net Increase (Decrease) in Net Assets Resulting from Operations		(4,087,539	)		(30,551,425	)		(1,295,491	)		4,203			143,838
Increase (Decrease) in Net Assets from Contract Transactions		(7,919,425	)		(35,407,291	)		(3,057,895	)		5,623			1,136,063
Total Increase (Decrease) in Net Assets		(12,006,964	)		(65,958,716	)		(4,353,386	)		9,826			1,279,901
Net Assets as of December 31, 2018:	$	77,976,438		$	329,410,155		$	30,245,258		$	94,093		$	7,435,779
Investment Income:
Reinvested Dividends		1,628,758			6,025,880			290,560			-			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		1,033,810			4,623,161			442,263			5,449			185,660
Net Investment Income (Loss)		594,948			1,402,719			(151,703	)		(5,449	)		(185,660	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		3,905,719			29,978,148			4,807,716			6,283			990,908
Realized Gain (Loss) on Investments		779,282			1,335,417			181,348			3,012			501,743
Net Realized Capital Gains (Losses) on Investments		4,685,001			31,313,565			4,989,064			9,295			1,492,651
Net Change in Unrealized Appreciation (Depreciation)		2,774,759			23,496,152			139,730			131,541			1,383,447
Net Gain (Loss) on Investment		7,459,760			54,809,717			5,128,794			140,836			2,876,098
Net Increase (Decrease) in Net Assets Resulting from Operations		8,054,708			56,212,436			4,977,091			135,387			2,690,438
Increase (Decrease) in Net Assets from Contract Transactions		(9,801,235	)		(30,858,909	)		(1,916,169	)		1,841,051			20,325,593
Total Increase (Decrease) in Net Assets		(1,746,527	)		25,353,527			3,060,922			1,976,438			23,016,031
Net Assets as of December 31, 2019:	$	76,229,911		$	354,763,682		$	33,306,180		$	2,070,531		$	30,451,810

See Accompanying Notes. ⁽¹⁾  See Footnote 1 24

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, 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, 2017:	$	31,264		$	133,663,918		$	283,601		$	37,398,555		$	24,740,125
Investment Income:
Reinvested Dividends		450			1,653,695			2,421			1,140,070			753,052
Investment Expense:
Mortality and Expense Risk and Administrative Charges		438			1,775,449			3,471			488,682			312,182
Net Investment Income (Loss)		12			(121,754	)		(1,050	)		651,388			440,870
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,233			5,425,736			-			2,609,039			1,426,668
Realized Gain (Loss) on Investments		52			1,589,333			(588	)		239,223			41,760
Net Realized Capital Gains (Losses) on Investments		1,285			7,015,069			(588	)		2,848,262			1,468,428
Net Change in Unrealized Appreciation (Depreciation)		(2,860	)		(13,776,192	)		(16,395	)		(6,402,693	)		(3,370,862	)
Net Gain (Loss) on Investment		(1,575	)		(6,761,123	)		(16,983	)		(3,554,431	)		(1,902,434	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,563	)		(6,882,877	)		(18,033	)		(2,903,043	)		(1,461,564	)
Increase (Decrease) in Net Assets from Contract Transactions		1			(1,883,475	)		32,901			(2,489,100	)		(2,938,076	)
Total Increase (Decrease) in Net Assets		(1,562	)		(8,766,352	)		14,868			(5,392,143	)		(4,399,640	)
Net Assets as of December 31, 2018:	$	29,702		$	124,897,566		$	298,469		$	32,006,412		$	20,340,485
Investment Income:
Reinvested Dividends		549			1,913,898			2,908			55,833			21,509
Investment Expense:
Mortality and Expense Risk and Administrative Charges		460			1,769,188			4,204			466,200			296,121
Net Investment Income (Loss)		89			144,710			(1,296	)		(410,367	)		(274,612	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		2,080			8,544,843			-			-			-
Realized Gain (Loss) on Investments		57			1,632,427			198			(8,103	)		1,711
Net Realized Capital Gains (Losses) on Investments		2,137			10,177,270			198			(8,103	)		1,711
Net Change in Unrealized Appreciation (Depreciation)		3,743			13,921,565			24,034			6,074,554			3,508,843
Net Gain (Loss) on Investment		5,880			24,098,835			24,232			6,066,451			3,510,554
Net Increase (Decrease) in Net Assets Resulting from Operations		5,969			24,243,545			22,936			5,656,084			3,235,942
Increase (Decrease) in Net Assets from Contract Transactions		(2	)		(8,295,321	)		86,744			(1,869,668	)		(698,051	)
Total Increase (Decrease) in Net Assets		5,967			15,948,224			109,680			3,786,416			2,537,891
Net Assets as of December 31, 2019:	$	35,669		$	140,845,790		$	408,149		$	35,792,828		$	22,878,376

See Accompanying Notes. ⁽¹⁾  See Footnote 1 25

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, 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, 2017:	$	37,085,031		$	348,545		$	76,692,551		$	15,394,034		$	479,737
Investment Income:
Reinvested Dividends		1,138,284			9,076			1,793,248			273,949			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		499,196			4,726			1,034,078			219,119			8,946
Net Investment Income (Loss)		639,088			4,350			759,170			54,830			(8,946	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		3,687,457			1,790			393,464			-			-
Realized Gain (Loss) on Investments		244,397			(843	)		(741,614	)		(162,606	)		(199,596	)
Net Realized Capital Gains (Losses) on Investments		3,931,854			947			(348,150	)		(162,606	)		(199,596	)
Net Change in Unrealized Appreciation (Depreciation)		(7,877,149	)		(12,495	)		(2,269,582	)		(359,622	)		231,222
Net Gain (Loss) on Investment		(3,945,295	)		(11,548	)		(2,617,732	)		(522,228	)		31,626
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,306,207	)		(7,198	)		(1,858,562	)		(467,398	)		22,680
Increase (Decrease) in Net Assets from Contract Transactions		(574,922	)		(12,357	)		(4,066,264	)		209,396			996,533
Total Increase (Decrease) in Net Assets		(3,881,129	)		(19,555	)		(5,924,826	)		(258,002	)		1,019,213
Net Assets as of December 31, 2018:	$	33,203,902		$	328,990		$	70,767,725		$	15,136,032		$	1,498,950
Investment Income:
Reinvested Dividends		-			6,617			1,612,735			360,395			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		491,552			3,974			994,862			225,325			9,870
Net Investment Income (Loss)		(491,552	)		2,643			617,873			135,070			(9,870	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			-			-			-
Realized Gain (Loss) on Investments		57,052			(1,060	)		(186,696	)		(33,475	)		(239,102	)
Net Realized Capital Gains (Losses) on Investments		57,052			(1,060	)		(186,696	)		(33,475	)		(239,102	)
Net Change in Unrealized Appreciation (Depreciation)		6,995,947			17,461			4,216,755			901,692			(206,523	)
Net Gain (Loss) on Investment		7,052,999			16,401			4,030,059			868,217			(445,625	)
Net Increase (Decrease) in Net Assets Resulting from Operations		6,561,447			19,044			4,647,932			1,003,287			(455,495	)
Increase (Decrease) in Net Assets from Contract Transactions		(1,443,828	)		(96,965	)		(3,702,128	)		125,891			(589,719	)
Total Increase (Decrease) in Net Assets		5,117,619			(77,921	)		945,804			1,129,178			(1,045,214	)
Net Assets as of December 31, 2019:	$	38,321,521		$	251,069		$	71,713,529		$	16,265,210		$	453,736

See Accompanying Notes. ⁽¹⁾  See Footnote 1 26

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, 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
Net Assets as of December 31, 2017:	$	26,090,564		$	93,891,791		$	57,992,860		$	3,307,890
Investment Income:
Reinvested Dividends		373,891			1,312,059			722,502			29,124
Investment Expense:
Mortality and Expense Risk and Administrative Charges		299,242			1,203,686			774,830			42,615
Net Investment Income (Loss)		74,649			108,373			(52,328	)		(13,491	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			-			-			315,138
Realized Gain (Loss) on Investments		197,184			620,251			307,032			14,311
Net Realized Capital Gains (Losses) on Investments		197,184			620,251			307,032			329,449
Net Change in Unrealized Appreciation (Depreciation)		(1,247,490	)		(5,669,763	)		(4,251,924	)		(715,021	)
Net Gain (Loss) on Investment		(1,050,306	)		(5,049,512	)		(3,944,892	)		(385,572	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(975,657	)		(4,941,139	)		(3,997,220	)		(399,063	)
Increase (Decrease) in Net Assets from Contract Transactions		(3,169,664	)		(5,461,714	)		(5,271,929	)		(133,387	)
Total Increase (Decrease) in Net Assets		(4,145,321	)		(10,402,853	)		(9,269,149	)		(532,450	)
Net Assets as of December 31, 2018:	$	21,945,243		$	83,488,938		$	48,723,711		$	2,775,440
Investment Income:
Reinvested Dividends		437,722			1,549,365			836,930			26,962
Investment Expense:
Mortality and Expense Risk and Administrative Charges		278,885			1,123,475			689,853			38,675
Net Investment Income (Loss)		158,837			425,890			147,077			(11,713	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,657,376			5,858,036			3,320,278			214,761
Realized Gain (Loss) on Investments		81,691			348,994			(117,585	)		1,696
Net Realized Capital Gains (Losses) on Investments		1,739,067			6,207,030			3,202,693			216,457
Net Change in Unrealized Appreciation (Depreciation)		174,293			1,199,812			1,254,133			411,909
Net Gain (Loss) on Investment		1,913,360			7,406,842			4,456,826			628,366
Net Increase (Decrease) in Net Assets Resulting from Operations		2,072,197			7,832,732			4,603,903			616,653
Increase (Decrease) in Net Assets from Contract Transactions		(1,857,100	)		(5,595,849	)		(4,645,871	)		(434,930	)
Total Increase (Decrease) in Net Assets		215,097			2,236,883			(41,968	)		181,723
Net Assets as of December 31, 2019:	$	22,160,340		$	85,725,821		$	48,681,743		$	2,957,163

See Accompanying Notes. ⁽¹⁾  See Footnote 1 27

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, 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 TS&W International Equity Initial Class			TA TS&W International Equity Service Class
	Subaccount			Subaccount			Subaccount			Subaccount			Subaccount
Net Assets as of December 31, 2017:	$	12,762,113		$	369,816		$	37,625,384		$	765,459		$	3,615,192
Investment Income:
Reinvested Dividends		87,628			-			-			16,784			65,666
Investment Expense:
Mortality and Expense Risk and Administrative Charges		189,996			3,662			568,399			9,692			49,850
Net Investment Income (Loss)		(102,368	)		(3,662	)		(568,399	)		7,092			15,816
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,297,030			19,093			2,007,908			-			-
Realized Gain (Loss) on Investments		(186,995	)		11,402			1,211,003			10,755			57,355
Net Realized Capital Gains (Losses) on Investments		1,110,035			30,495			3,218,911			10,755			57,355
Net Change in Unrealized Appreciation (Depreciation)		(2,712,175	)		(54,860	)		(5,418,152	)		(137,315	)		(644,158	)
Net Gain (Loss) on Investment		(1,602,140	)		(24,365	)		(2,199,241	)		(126,560	)		(586,803	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,704,508	)		(28,027	)		(2,767,640	)		(119,468	)		(570,987	)
Increase (Decrease) in Net Assets from Contract Transactions		44,069			(40,018	)		(4,713,670	)		(40,482	)		(193,790	)
Total Increase (Decrease) in Net Assets		(1,660,439	)		(68,045	)		(7,481,310	)		(159,950	)		(764,777	)
Net Assets as of December 31, 2018:	$	11,101,674		$	301,771		$	30,144,074		$	605,509		$	2,850,415
Investment Income:
Reinvested Dividends		106,183			-			-			8,972			42,472
Investment Expense:
Mortality and Expense Risk and Administrative Charges		197,656			2,645			547,614			8,586			50,130
Net Investment Income (Loss)		(91,473	)		(2,645	)		(547,614	)		386			(7,658	)
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		1,129,468			17,711			4,152,252			9,911			57,364
Realized Gain (Loss) on Investments		(297,443	)		27,962			1,416,617			6,176			18,047
Net Realized Capital Gains (Losses) on Investments		832,025			45,673			5,568,869			16,087			75,411
Net Change in Unrealized Appreciation (Depreciation)		1,995,116			29,160			4,526,933			96,690			536,963
Net Gain (Loss) on Investment		2,827,141			74,833			10,095,802			112,777			612,374
Net Increase (Decrease) in Net Assets Resulting from Operations		2,735,668			72,188			9,548,188			113,163			604,716
Increase (Decrease) in Net Assets from Contract Transactions		2,722,416			(194,570	)		2,847,098			(37,887	)		567,638
Total Increase (Decrease) in Net Assets		5,458,084			(122,382	)		12,395,286			75,276			1,172,354
Net Assets as of December 31, 2019:	$	16,559,758		$	179,389		$	42,539,360		$	680,785		$	4,022,769

See Accompanying Notes. ⁽¹⁾  See Footnote 1 28

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	TA U.S. Equity Index Service Class			TA WMC US Growth Initial Class			TA WMC US Growth Service Class			Vanguard® - Capital Growth		Vanguard® - Conservative Allocation
	Subaccount			Subaccount			Subaccount			Subaccount(1)		Subaccount(1)
Net Assets as of December 31, 2017:	$	918,226		$	3,010,710		$	22,079,032		$	-	$	-
Investment Income:
Reinvested Dividends		9,860			14,347			63,161			-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		59,921			41,277			339,801			-		-
Net Investment Income (Loss)		(50,061	)		(26,930	)		(276,640	)		-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		6,371			247,569			1,939,446			-		-
Realized Gain (Loss) on Investments		4,866			103,844			897,936			-		-
Net Realized Capital Gains (Losses) on Investments		11,237			351,413			2,837,382			-		-
Net Change in Unrealized Appreciation (Depreciation)		(543,333	)		(347,416	)		(2,755,160	)		-		-
Net Gain (Loss) on Investment		(532,096	)		3,997			82,222			-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		(582,157	)		(22,933	)		(194,418	)		-		-
Increase (Decrease) in Net Assets from Contract Transactions		5,357,749			(321,752	)		(1,677,132	)		-		-
Total Increase (Decrease) in Net Assets		4,775,592			(344,685	)		(1,871,550	)		-		-
Net Assets as of December 31, 2018:	$	5,693,818		$	2,666,025		$	20,207,482		$	-	$	-
Investment Income:
Reinvested Dividends		88,441			4,153			-			-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		241,498			47,611			378,795			-		-
Net Investment Income (Loss)		(153,057	)		(43,458	)		(378,795	)		-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-			270,448			2,221,095			-		-
Realized Gain (Loss) on Investments		742,618			82,861			786,793			-		-
Net Realized Capital Gains (Losses) on Investments		742,618			353,309			3,007,888			-		-
Net Change in Unrealized Appreciation (Depreciation)		3,452,602			804,049			5,632,152			-		-
Net Gain (Loss) on Investment		4,195,220			1,157,358			8,640,040			-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		4,042,163			1,113,900			8,261,245			-		-
Increase (Decrease) in Net Assets from Contract Transactions		24,468,153			1,501,340			8,418,463			-		-
Total Increase (Decrease) in Net Assets		28,510,316			2,615,240			16,679,708			-		-
Net Assets as of December 31, 2019:	$	34,204,134		$	5,281,265		$	36,887,190		$	-	$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 29

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Vanguard® - Diversified Value		Vanguard® Balanced		Vanguard® Equity Income		Vanguard® Equity Index			Vanguard® Global Bond Index
	Subaccount(1)		Subaccount(1)		Subaccount(1)		Subaccount			Subaccount(1)
Net Assets as of December 31, 2017:	$	-	$	-	$	-	$	968,675		$	-
Investment Income:
Reinvested Dividends		-		-		-		16,518			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		-		-		8,035			-
Net Investment Income (Loss)		-		-		-		8,483			-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		-		-		16,079			-
Realized Gain (Loss) on Investments		-		-		-		1,482			-
Net Realized Capital Gains (Losses) on Investments		-		-		-		17,561			-
Net Change in Unrealized Appreciation (Depreciation)		-		-		-		(77,112	)		-
Net Gain (Loss) on Investment		-		-		-		(59,551	)		-
Net Increase (Decrease) in Net Assets Resulting from Operations		-		-		-		(51,068	)		-
Increase (Decrease) in Net Assets from Contract Transactions		-		-		-		(1	)		-
Total Increase (Decrease) in Net Assets		-		-		-		(51,069	)		-
Net Assets as of December 31, 2018:	$	-	$	-	$	-	$	917,606		$	-
Investment Income:
Reinvested Dividends		-		-		-		20,082			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		-		-		4,767			-
Net Investment Income (Loss)		-		-		-		15,315			-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		-		-		26,294			-
Realized Gain (Loss) on Investments		-		-		-		209,199			-
Net Realized Capital Gains (Losses) on Investments		-		-		-		235,493			-
Net Change in Unrealized Appreciation (Depreciation)		-		-		-		(95,893	)		-
Net Gain (Loss) on Investment		-		-		-		139,600			-
Net Increase (Decrease) in Net Assets Resulting from Operations		-		-		-		154,915			-
Increase (Decrease) in Net Assets from Contract Transactions		-		-		-		(1,072,521	)		-
Total Increase (Decrease) in Net Assets		-		-		-		(917,606	)		-
Net Assets as of December 31, 2019:	$	-	$	-	$	-	$	-		$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 30

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Vanguard® Growth		Vanguard® High Yield Bond		Vanguard® International			Vanguard® Mid-Cap Index		Vanguard® Moderate Allocation
	Subaccount(1)		Subaccount(1)		Subaccount			Subaccount		Subaccount(1)
Net Assets as of December 31, 2017:	$	-	$	-	$	646,515		$	-	$	-
Investment Income:
Reinvested Dividends		-		-		4,941			-		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		-		5,147			-		-
Net Investment Income (Loss)		-		-		(206	)		-		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		-		16,536			-		-
Realized Gain (Loss) on Investments		-		-		4,484			-		-
Net Realized Capital Gains (Losses) on Investments		-		-		21,020			-		-
Net Change in Unrealized Appreciation (Depreciation)		-		-		(105,138	)		-		-
Net Gain (Loss) on Investment		-		-		(84,118	)		-		-
Net Increase (Decrease) in Net Assets Resulting from Operations		-		-		(84,324	)		-		-
Increase (Decrease) in Net Assets from Contract Transactions		-		-		(9,908	)		-		-
Total Increase (Decrease) in Net Assets		-		-		(94,232	)		-		-
Net Assets as of December 31, 2018:	$	-	$	-	$	552,283		$	-	$	-
Investment Income:
Reinvested Dividends		-		-		9,015			7,282		-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		-		2,575			4,731		-
Net Investment Income (Loss)		-		-		6,440			2,551		-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		-		19,659			37,539		-
Realized Gain (Loss) on Investments		-		-		104,633			50,968		-
Net Realized Capital Gains (Losses) on Investments		-		-		124,292			88,507		-
Net Change in Unrealized Appreciation (Depreciation)		-		-		(50,659	)		14,869		-
Net Gain (Loss) on Investment		-		-		73,633			103,376		-
Net Increase (Decrease) in Net Assets Resulting from Operations		-		-		80,073			105,927		-
Increase (Decrease) in Net Assets from Contract Transactions		-		-		(632,356	)		583,185		-
Total Increase (Decrease) in Net Assets		-		-		(552,283	)		689,112		-
Net Assets as of December 31, 2019:	$	-	$	-	$	-		$	689,112	$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 31

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Vanguard® Money Market		Vanguard® Real Estate Index		Vanguard® Short-Term Investment Grade		Vanguard® Total Bond Market Index			Vanguard® Total International Stock Market Index
	Subaccount(1)		Subaccount		Subaccount		Subaccount			Subaccount(1)
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		$	-
Investment Income:
Reinvested Dividends		-		6,749		17,292		27,802			-
Investment Expense:
Mortality and Expense Risk and Administrative Charges		-		2,225		5,966		7,889			-
Net Investment Income (Loss)		-		4,524		11,326		19,913			-
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions		-		12,197		-		-			-
Realized Gain (Loss) on Investments		-		23,175		14,908		35,152			-
Net Realized Capital Gains (Losses) on Investments		-		35,372		14,908		35,152			-
Net Change in Unrealized Appreciation (Depreciation)		-		5,993		1,707		22,429			-
Net Gain (Loss) on Investment		-		41,365		16,615		57,581			-
Net Increase (Decrease) in Net Assets Resulting from Operations		-		45,889		27,941		77,494			-
Increase (Decrease) in Net Assets from Contract Transactions		-		239,411		796,699		348,716			-
Total Increase (Decrease) in Net Assets		-		285,300		824,640		426,210			-
Net Assets as of December 31, 2019:	$	-	$	285,300	$	824,640	$	782,393		$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 32

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Vanguard® Total Stock 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(1)		Subaccount		Subaccount		Subaccount		Subaccount
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:	$	-	$	-	$	-	$	-	$	-
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, 2019:	$	-	$	-	$	-	$	-	$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 33

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2018 and 2019, Except as Noted

	Wanger International		Wanger USA
	Subaccount		Subaccount
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:	$	-	$	-
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, 2019:	$	-	$	-

See Accompanying Notes. ⁽¹⁾  See Footnote 1 34

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

1. Organization

Separate Account 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 Annuity I-Share, Transamerica Inspire^SM Variable Annuity and Transamerica Advisory 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
DFA Investment Dimensions Group Inc.	DFA Investment Dimensions Group Inc.
DFA VA Equity Allocation	DFA VA Equity Allocation Portfolio
DFA VA Global Bond	DFA VA Global Bond Portfolio
DFA VA Global Moderate Allocation	DFA VA Global Moderate Allocation Portfolio
DFA VA International Small	DFA VA International Small Portfolio
DFA VA International Value	DFA VA International Value Portfolio
DFA VA Short-Term Fixed	DFA VA Short-Term Fixed Portfolio
DFA VA U.S. Large Value	DFA VA U.S. Large Value Portfolio
DFA VA U.S. Targeted Value	DFA VA U.S. Targeted Value Portfolio
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

35

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

1.  Organization (continued)

Subaccount Investment by Mutual Fund:
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 Allocation Class 4 Shares	Franklin 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
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 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 iShares Edge 100 Service Class	Transamerica BlackRock iShares Edge 100 VP Service Class
TA BlackRock iShares Edge 40 Initial Class	Transamerica BlackRock iShares Edge 40 VP Initial Class
TA BlackRock iShares Edge 40 Service Class	Transamerica BlackRock iShares Edge 40 VP Service Class
TA BlackRock iShares Edge 50 Service Class	Transamerica BlackRock iShares Edge 50 VP Service Class

36

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

1.  Organization (continued)

Subaccount Investment by Mutual Fund:
Subaccount	Mutual Fund
TA BlackRock iShares Edge 75 Service Class	Transamerica BlackRock iShares Edge 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 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

37

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

1.  Organization (continued)

Subaccount Investment by Mutual Fund:
Subaccount	Mutual Fund
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 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® - Capital Growth	Vanguard® - Capital Growth Portfolio
Vanguard® - Conservative Allocation	Vanguard® - Conservative Allocation Portfolio
Vanguard® - Diversified Value	Vanguard® - Diversified Value Portfolio
Vanguard® Balanced	Vanguard® Balanced Portfolio
Vanguard® Equity Income	Vanguard® Equity Income Portfolio
Vanguard® Equity Index	Vanguard® Equity Index Portfolio
Vanguard® Global Bond Index	Vanguard® Global Bond Index Portfolio
Vanguard® Growth	Vanguard® Growth Portfolio
Vanguard® High Yield Bond	Vanguard® High Yield Bond Portfolio
Vanguard® International	Vanguard® International Portfolio
Vanguard® Mid-Cap Index	Vanguard® Mid-Cap Index Portfolio
Vanguard® Moderate Allocation	Vanguard® Moderate Allocation Portfolio
Vanguard® Money Market	Vanguard® Money Market 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
Vanguard® Total International Stock Market Index	Vanguard® Total International Stock Market Index Portfolio
Vanguard® Total Stock Market Index	Vanguard® Total Stock 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

38

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

1.  Organization (continued)

Subaccount Investment by Mutual Fund:
Subaccount	Mutual Fund
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
DFA VA Equity Allocation	December 23, 2019
DFA VA Global Bond	December 23, 2019
DFA VA Global Moderate Allocation	December 23, 2019
DFA VA International Small	December 23, 2019
DFA VA International Value	December 23, 2019
DFA VA Short-Term Fixed	December 23, 2019
DFA VA U.S. Large Value	December 23, 2019
DFA VA U.S. Targeted Value	December 23, 2019
Vanguard® - Capital Growth	December 23, 2019
Vanguard® - Conservative Allocation	December 23, 2019
Vanguard® - Diversified Value	December 23, 2019
Vanguard® Balanced	December 23, 2019
Vanguard® Equity Income	December 23, 2019
Vanguard® Global Bond Index	December 23, 2019
Vanguard® Growth	December 23, 2019
Vanguard® High Yield Bond	December 23, 2019
Vanguard® Moderate Allocation	December 23, 2019
Vanguard® Money Market	December 23, 2019
Vanguard® Total International Stock Market Index	December 23, 2019
Vanguard® Total Stock Market Index	December 23, 2019
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 iShares Edge 100 Service Class	March 21, 2016
TA BlackRock iShares Edge 50 Service Class	March 21, 2016
TA BlackRock iShares Edge 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
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

39

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

1.  Organization (continued)

The following subaccount name changes were made effective during the fiscal year ended December 31, 2019:

Subaccount	Formerly
Franklin Allocation Class 4 Shares	Franklin Founding Funds Allocation Class 4 Shares
TA BlackRock iShares Edge 100 Service Class	TA BlackRock Equity Smart Beta 100 Service Class
TA BlackRock iShares Edge 40 Initial Class	TA BlackRock Smart Beta 40 Initial Class
TA BlackRock iShares Edge 40 Service Class	TA BlackRock Smart Beta 40 Service Class
TA BlackRock iShares Edge 50 Service Class	TA BlackRock Smart Beta 50 Service Class
TA BlackRock iShares Edge 75 Service Class	TA BlackRock Smart Beta 75 Service Class
During the current year the following subaccounts were liquidated and subsequently reinvested:
Reinvested Subaccount	Liquidated Subaccount
TA Morgan Stanley Capital Growth Initial Class	TA Jennison Growth Initial Class
TA Morgan Stanley Capital Growth Service Class	TA Jennison Growth Service Class
TA WMC US Growth Initial Class	TA Torray Concentrated Growth Initial Class
TA WMC US Growth Service Class	TA Torray Concentrated Growth Service Class

40

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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, 2019.

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, 2019.

41

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

3. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2019 were as follows:

Subaccount	Purchases		Sales
AB Balanced Wealth Strategy Class B Shares	$	1,909,294	$	1,179,091
AB Growth and Income Class B Shares		6,993,257		6,920,387
AB Large Cap Growth Class B Shares		56,876		98,235
American Funds - Asset Allocation Class 2 Shares		12,605,767		7,446,108
American Funds - Bond Class 2 Shares		5,498,913		4,376,450
American Funds - Growth Class 2 Shares		31,696,747		11,104,180
American Funds - Growth-Income Class 2 Shares		18,027,463		5,704,010
American Funds - International Class 2 Shares		12,211,700		5,566,203
DFA VA Equity Allocation		100		100
DFA VA Global Bond		100		100
DFA VA Global Moderate Allocation		100		100
DFA VA International Small		101		101
DFA VA International Value		100		100
DFA VA Short-Term Fixed		100		100
DFA VA U.S. Large Value		100		100
DFA VA U.S. Targeted Value		100		100
Fidelity® VIP Balanced Service Class 2		8,899,957		5,525,747
Fidelity® VIP Contrafund® Initial Class		-		-
Fidelity® VIP Contrafund® Service Class 2		27,492,053		8,118,379
Fidelity® VIP Equity-Income Service Class 2		45,672		62,766
Fidelity® VIP Growth Service Class 2		65,311		61,759
Fidelity® VIP Growth Opportunities Service Class 2		233		132
Fidelity® VIP Mid Cap Initial Class		-		-
Fidelity® VIP Mid Cap Service Class 2		10,885,217		6,124,938
Fidelity® VIP Value Strategies Initial Class		2,765		3,273
Fidelity® VIP Value Strategies Service Class 2		5,577,969		3,123,791
Franklin Allocation Class 4 Shares		445,011		672,104
Franklin Income Class 2 Shares		267,311		750,911
Franklin Mutual Shares Class 2 Shares		105,823		145,286
Franklin Templeton Foreign Class 2 Shares		58,604		253,676
Invesco V.I. American Franchise Series II Shares		29,415		75,555
Janus Henderson - Enterprise Service Shares		22,211		10,624
Janus Henderson - Global Research Service Shares		23,671		20,437
Janus Henderson - Mid Cap Value Service Shares		212		111
JPMorgan Insurance Trust Core Bond Class 1 Shares		111,183		141,309
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares		15,055		2,348

42

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

3.  Investments (continued)

Subaccount	Purchases		Sales
JPMorgan Insurance Trust Small Cap Core Class 1 Shares	$	1,042	$	7,673
JPMorgan Insurance Trust U.S. Equity Class 1 Shares		7,103		2,367
MFS® New Discovery Service Class		372,958		192,306
MFS® Total Return Service Class		57,799		122,230
State Street Total Return V.I.S. Class 3 Shares		2,409,545		3,239,645
TA 60/40 Allocation Service Class		619,974		193,130
TA Aegon High Yield Bond Initial Class		5,592		64,915
TA Aegon High Yield Bond Service Class		2,621,354		1,597,146
TA Aegon U.S. Government Securities Initial Class		9,792		93,940
TA Aegon U.S. Government Securities Service Class		22,053,407		49,467,210
TA American Funds Managed Risk - Balanced Service Class		16,433,699		6,205,602
TA Barrow Hanley Dividend Focused Initial Class		577,543		412,945
TA Barrow Hanley Dividend Focused Service Class		9,497,934		6,957,951
TA BlackRock Global Allocation Service Class		8,288,712		8,183,397
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		3,524,391		1,637,850
TA BlackRock Global Allocation Managed Risk - Growth Service Class		1,183,417		1,366,833
TA BlackRock Global Real Estate Securities Initial Class		3,608		11,503
TA BlackRock Global Real Estate Securities Service Class		1,145,846		708,045
TA BlackRock Government Money Market Initial Class		188,723		241,910
TA BlackRock Government Money Market Service Class		46,904,964		37,985,079
TA BlackRock iShares Edge 100 Service Class		1,954,529		502,134
TA BlackRock iShares Edge 40 Initial Class		9,516		7,616
TA BlackRock iShares Edge 40 Service Class		5,336,736		2,966,112
TA BlackRock iShares Edge 50 Service Class		12,881,438		1,841,712
TA BlackRock iShares Edge 75 Service Class		5,315,093		1,275,258
TA BlackRock Tactical Allocation Service Class		8,588,069		14,441,693
TA Greystone International Growth Initial Class		42,131		21,042
TA Greystone International Growth Service Class		2,557,214		1,808,560
TA International Equity Index Service Class		3,276,933		747,806
TA Janus Balanced Service Class		15,720,401		12,187,073
TA Janus Mid-Cap Growth Initial Class		10,992		69,506
TA Janus Mid-Cap Growth Service Class		5,955,983		2,933,196
TA JPMorgan Asset Allocation - Conservative Initial Class		-		-
TA JPMorgan Asset Allocation - Conservative Service Class		8,546,304		10,865,965
TA JPMorgan Asset Allocation - Growth Initial Class		4,111		521
TA JPMorgan Asset Allocation - Growth Service Class		3,397,894		1,365,138

43

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

3.  Investments (continued)

Subaccount	Purchases		Sales
TA JPMorgan Asset Allocation - Moderate Initial Class	$	367,600	$	675,438
TA JPMorgan Asset Allocation - Moderate Service Class		44,865,122		32,918,931
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		33,901		411,309
TA JPMorgan Asset Allocation - Moderate Growth Service Class		23,886,308		24,260,742
TA JPMorgan Core Bond Service Class		15,294,527		6,058,870
TA JPMorgan Enhanced Index Initial Class		88,815		73,971
TA JPMorgan Enhanced Index Service Class		2,323,393		2,754,378
TA JPMorgan International Moderate Growth Service Class		5,632,595		5,975,592
TA JPMorgan Mid Cap Value Service Class		6,945,839		5,346,720
TA JPMorgan Tactical Allocation Service Class		8,459,063		10,109,170
TA Legg Mason Dynamic Allocation - Balanced Service Class		5,731,165		10,247,179
TA Legg Mason Dynamic Allocation - Growth Service Class		3,845,382		6,709,483
TA Levin Large Cap Value Service Class		732,670		13,957
TA Madison Diversified Income Service Class		3,912,001		403,102
TA Managed Risk - Balanced ETF Service Class		30,468,810		43,340,814
TA Managed Risk - Conservative ETF Service Class		10,422,818		15,723,301
TA Managed Risk - Growth ETF Service Class		45,087,020		44,565,054
TA Market Participation Strategy Service Class		6,173,579		3,433,752
TA Morgan Stanley Capital Growth Initial Class		1,884,393		42,506
TA Morgan Stanley Capital Growth Service Class		24,224,067		3,093,226
TA Multi-Managed Balanced Initial Class		2,628		460
TA Multi-Managed Balanced Service Class		15,492,101		15,097,928
TA Multi-Manager Alternative Strategies Service Class		168,019		82,572
TA PIMCO Tactical - Balanced Service Class		1,442,981		3,723,015
TA PIMCO Tactical - Conservative Service Class		3,602,776		4,575,427
TA PIMCO Tactical - Growth Service Class		1,715,022		3,650,411
TA PIMCO Total Return Initial Class		66,273		160,595
TA PIMCO Total Return Service Class		8,089,965		11,174,224
TA PineBridge Inflation Opportunities Service Class		2,278,154		2,017,177
TA ProFunds UltraBear Service Class (OAM)		288,514		888,401
TA QS Investors Active Asset Allocation - Conservative Service Class		2,713,058		2,753,939
TA QS Investors Active Asset Allocation - Moderate Service Class		10,801,057		10,113,011
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		6,186,473		7,365,018
TA Small/Mid Cap Value Initial Class		241,723		473,605
TA Small/Mid Cap Value Service Class		6,206,837		2,446,438
TA T. Rowe Price Small Cap Initial Class		21,865		201,368

44

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

3.  Investments (continued)

Subaccount	Purchases		Sales
TA T. Rowe Price Small Cap Service Class	$	14,856,781	$	8,405,037
TA TS&W International Equity Initial Class		30,990		58,584
TA TS&W International Equity Service Class		1,397,078		779,733
TA U.S. Equity Index Service Class		31,678,984		7,363,886
TA WMC US Growth Initial Class		2,098,390		370,062
TA WMC US Growth Service Class		13,610,077		3,349,314
Vanguard® - Capital Growth		100		100
Vanguard® - Conservative Allocation		100		100
Vanguard® - Diversified Value		100		100
Vanguard® Balanced		101		101
Vanguard® Equity Income		100		100
Vanguard® Equity Index		46,376		1,077,287
Vanguard® Global Bond Index		100		100
Vanguard® Growth		101		101
Vanguard® High Yield Bond		100		100
Vanguard® International		28,675		634,932
Vanguard® Mid-Cap Index		1,175,088		551,814
Vanguard® Moderate Allocation		100		100
Vanguard® Money Market		100		100
Vanguard® Real Estate Index		524,994		268,863
Vanguard® Short-Term Investment Grade		1,476,949		668,923
Vanguard® Total Bond Market Index		1,490,019		1,121,390
Vanguard® Total International Stock Market Index		101		101
Vanguard® Total Stock Market Index		100		100
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		-		-

45

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, 2019								Year Ended December 31, 2018
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		161,389		(337,274	)		(175,885	)		178,407		(350,678	)		(172,271	)
AB Growth and Income Class B Shares		287,213		(1,713,359	)		(1,426,146	)		233,535		(830,761	)		(597,226	)
AB Large Cap Growth Class B Shares		-		(29,196	)		(29,196	)		13,782		(40,103	)		(26,321	)
American Funds - Asset Allocation Class 2 Shares		641,683		(1,709,598	)		(1,067,915	)		1,614,178		(5,606,422	)		(3,992,244	)
American Funds - Bond Class 2 Shares		865,708		(1,262,970	)		(397,262	)		325,847		(875,778	)		(549,931	)
American Funds - Growth Class 2 Shares		1,330,787		(1,016,975	)		313,812			955,977		(1,190,157	)		(234,180	)
American Funds - Growth-Income Class 2 Shares		798,526		(520,982	)		277,544			698,512		(3,530,920	)		(2,832,408	)
American Funds - International Class 2 Shares		1,434,479		(2,070,288	)		(635,809	)		8,712,923		(1,105,133	)		7,607,790
DFA VA Equity Allocation		-		-			-			-		-			-
DFA VA Global Bond		-		-			-			-		-			-
DFA VA Global Moderate Allocation		-		-			-			-		-			-
DFA VA International Small		-		-			-			-		-			-
DFA VA International Value		-		-			-			-		-			-
DFA VA Short-Term Fixed		-		-			-			-		-			-
DFA VA U.S. Large Value		-		-			-			-		-			-
DFA VA U.S. Targeted Value		-		-			-			-		-			-
Fidelity® VIP Balanced Service Class 2		721,372		(1,781,915	)		(1,060,543	)		1,020,382		(1,810,999	)		(790,617	)
Fidelity® VIP Contrafund® Initial Class		-		-			-			-		-			-
Fidelity® VIP Contrafund® Service Class 2		2,714,322		(1,101,794	)		1,612,528			465,354		(1,332,558	)		(867,204	)
Fidelity® VIP Equity-Income Service Class 2		-		(24,495	)		(24,495	)		20,820		(110,163	)		(89,343	)
Fidelity® VIP Growth Service Class 2		-		(14,628	)		(14,628	)		14,325		(44,490	)		(30,165	)
Fidelity® VIP Growth Opportunities Service Class 2		-		(44	)		(44	)		-		(44	)		(44	)
Fidelity® VIP Mid Cap Initial Class		-		-			-			-		-			-
Fidelity® VIP Mid Cap Service Class 2		592,192		(666,324	)		(74,132	)		427,589		(2,711,974	)		(2,284,385	)
Fidelity® VIP Value Strategies Initial Class		-		(196	)		(196	)		-		(1	)		(1	)
Fidelity® VIP Value Strategies Service Class 2		352,892		(470,696	)		(117,804	)		174,586		(628,486	)		(453,900	)
Franklin Allocation Class 4 Shares		104,664		(309,976	)		(205,312	)		2,000		(379,820	)		(377,820	)

46

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
Franklin Income Class 2 Shares		58,811		(471,860	)		(413,049	)		7,388		(404,763	)		(397,375	)
Franklin Mutual Shares Class 2 Shares		34,843		(98,805	)		(63,962	)		15,905		(113,686	)		(97,781	)
Franklin Templeton Foreign Class 2 Shares		27,337		(243,638	)		(216,301	)		16,796		(297,554	)		(280,758	)
Invesco V.I. American Franchise Series II Shares		-		(35,181	)		(35,181	)		-		(4,587	)		(4,587	)
Janus Henderson - Enterprise Service Shares		-		(1,298	)		(1,298	)		9,296		(22,362	)		(13,066	)
Janus Henderson - Global Research Service Shares		-		(9,357	)		(9,357	)		6,204		(40,130	)		(33,926	)
Janus Henderson - Mid Cap Value Service Shares		-		(34	)		(34	)		-		(35	)		(35	)
JPMorgan Insurance Trust Core Bond Class 1 Shares		75,611		(105,318	)		(29,707	)		-		(31,621	)		(31,621	)
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares		-		-			-			-		-			-
JPMorgan Insurance Trust Small Cap Core Class 1 Shares		-		(2,195	)		(2,195	)		-		(44	)		(44	)
JPMorgan Insurance Trust U.S. Equity Class 1 Shares		-		(323	)		(323	)		-		(311	)		(311	)
MFS® New Discovery Service Class		6,500		(47,654	)		(41,154	)		10,112		(89,081	)		(78,969	)
MFS® Total Return Service Class		4,671		(53,635	)		(48,964	)		4,085		(147,622	)		(143,537	)
State Street Total Return V.I.S. Class 3 Shares		270,945		(398,495	)		(127,550	)		171,522		(171,843	)		(321	)
TA 60/40 Allocation Service Class		57,823		(17,756	)		40,067			64,567		(3,332	)		61,235
TA Aegon High Yield Bond Initial Class		168		(25,417	)		(25,249	)		3,175		(407	)		2,768
TA Aegon High Yield Bond Service Class		308,207		(420,468	)		(112,261	)		201,037		(455,645	)		(254,608	)
TA Aegon U.S. Government Securities Initial Class		2,959		(45,303	)		(42,344	)		-		(10,396	)		(10,396	)
TA Aegon U.S. Government Securities Service Class		3,214,842		(7,582,098	)		(4,367,256	)		6,504,421		(3,857,976	)		2,646,445
TA American Funds Managed Risk - Balanced Service Class		1,246,252		(483,698	)		762,554			1,343,044		(415,900	)		927,144
TA Barrow Hanley Dividend Focused Initial Class		508		(131,083	)		(130,575	)		7,328		(67,469	)		(60,141	)
TA Barrow Hanley Dividend Focused Service Class		597,692		(1,447,109	)		(849,417	)		511,815		(851,637	)		(339,822	)
TA BlackRock Global Allocation Service Class		747,447		(2,950,604	)		(2,203,157	)		894,528		(5,386,186	)		(4,491,658	)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		314,818		(149,742	)		165,076			411,417		(63,339	)		348,078
TA BlackRock Global Allocation Managed Risk - Growth Service Class		86,517		(125,962	)		(39,445	)		143,646		(100,793	)		42,853
TA BlackRock Global Real Estate Securities Initial Class		1,149		(3,839	)		(2,690	)		-		(425	)		(425	)
TA BlackRock Global Real Estate Securities Service Class		127,784		(168,819	)		(41,035	)		142,739		(289,465	)		(146,726	)

47

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4.  Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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 Government Money Market Initial Class		140,554		(181,747	)		(41,193	)		67,198		(17,163	)		50,035
TA BlackRock Government Money Market Service Class		12,239,960		(11,219,883	)		1,020,077			11,561,707		(11,554,453	)		7,254
TA BlackRock iShares Edge 100 Service Class		67,231		(22,586	)		44,645			59,804		(23,056	)		36,748
TA BlackRock iShares Edge 40 Initial Class		228		(3,775	)		(3,547	)		149		(503	)		(354	)
TA BlackRock iShares Edge 40 Service Class		430,028		(1,052,922	)		(622,894	)		217,803		(1,393,269	)		(1,175,466	)
TA BlackRock iShares Edge 50 Service Class		1,067,888		(138,045	)		929,843			597,770		(86,989	)		510,781
TA BlackRock iShares Edge 75 Service Class		413,144		(88,315	)		324,829			307,884		(108,641	)		199,243
TA BlackRock Tactical Allocation Service Class		314,901		(4,343,046	)		(4,028,145	)		605,471		(3,317,723	)		(2,712,252	)
TA Greystone International Growth Initial Class		7,983		(11,820	)		(3,837	)		269		(4,253	)		(3,984	)
TA Greystone International Growth Service Class		146,406		(316,636	)		(170,230	)		308,024		(5,517,347	)		(5,209,323	)
TA International Equity Index Service Class		309,403		(69,244	)		240,159			202,315		(96,560	)		105,755
TA Janus Balanced Service Class		1,052,687		(2,688,167	)		(1,635,480	)		1,582,535		(2,144,845	)		(562,310	)
TA Janus Mid-Cap Growth Initial Class		614		(4,077	)		(3,463	)		4,190		(740	)		3,450
TA Janus Mid-Cap Growth Service Class		353,100		(628,148	)		(275,048	)		2,754,006		(273,066	)		2,480,940
TA JPMorgan Asset Allocation - Conservative Initial Class		-		-			-			-		(9,676	)		(9,676	)
TA JPMorgan Asset Allocation - Conservative Service Class		957,629		(3,171,139	)		(2,213,510	)		638,836		(2,581,635	)		(1,942,799	)
TA JPMorgan Asset Allocation - Growth Initial Class		-		-			-			-		-			-
TA JPMorgan Asset Allocation - Growth Service Class		183,899		(363,163	)		(179,264	)		104,335		(595,476	)		(491,141	)
TA JPMorgan Asset Allocation - Moderate Initial Class		166,479		(332,958	)		(166,479	)		-		(17,531	)		(17,531	)
TA JPMorgan Asset Allocation - Moderate Service Class		2,248,877		(10,587,324	)		(8,338,447	)		3,913,324		(14,067,757	)		(10,154,433	)
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		-		(185,480	)		(185,480	)		-		(32	)		(32	)
TA JPMorgan Asset Allocation - Moderate Growth Service Class		546,277		(6,646,749	)		(6,100,472	)		2,760,156		(9,006,121	)		(6,245,965	)
TA JPMorgan Core Bond Service Class		2,477,109		(1,941,498	)		535,611			1,403,385		(1,402,317	)		1,068
TA JPMorgan Enhanced Index Initial Class		-		(20,677	)		(20,677	)		-		(9,429	)		(9,429	)
TA JPMorgan Enhanced Index Service Class		100,185		(168,460	)		(68,275	)		178,748		(156,411	)		22,337
TA JPMorgan International Moderate Growth Service Class		208,268		(2,145,664	)		(1,937,396	)		2,040,276		(4,193,121	)		(2,152,845	)
TA JPMorgan Mid Cap Value Service Class		365,336		(523,084	)		(157,748	)		226,933		(863,951	)		(637,018	)

48

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4.  Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA JPMorgan Tactical Allocation Service Class		609,606		(2,639,532	)		(2,029,926	)		1,049,868		(3,820,815	)		(2,770,947	)
TA Legg Mason Dynamic Allocation - Balanced Service Class		484,602		(1,595,323	)		(1,110,721	)		502,496		(2,450,424	)		(1,947,928	)
TA Legg Mason Dynamic Allocation - Growth Service Class		170,398		(1,713,196	)		(1,542,798	)		686,331		(1,723,487	)		(1,037,156	)
TA Levin Large Cap Value Service Class		73,918		(959	)		72,959			14,949		(4,366	)		10,583
TA Madison Diversified Income Service Class		352,842		(48,034	)		304,808			155,187		(81,187	)		74,000
TA Managed Risk - Balanced ETF Service Class		1,187,646		(10,541,063	)		(9,353,417	)		2,875,044		(15,957,893	)		(13,082,849	)
TA Managed Risk - Conservative ETF Service Class		831,028		(6,438,006	)		(5,606,978	)		593,336		(3,875,568	)		(3,282,232	)
TA Managed Risk - Growth ETF Service Class		1,661,609		(11,879,340	)		(10,217,731	)		1,630,623		(16,427,649	)		(14,797,026	)
TA Market Participation Strategy Service Class		132,518		(556,331	)		(423,813	)		459,070		(1,269,613	)		(810,543	)
TA Morgan Stanley Capital Growth Initial Class		479,862		(10,529	)		469,333			1,865		(252	)		1,613
TA Morgan Stanley Capital Growth Service Class		1,915,066		(221,066	)		1,694,000			222,579		(252,196	)		(29,617	)
TA Multi-Managed Balanced Initial Class		-		-			-			-		-			-
TA Multi-Managed Balanced Service Class		550,762		(2,658,447	)		(2,107,685	)		1,029,786		(3,375,485	)		(2,345,699	)
TA Multi-Manager Alternative Strategies Service Class		16,625		(7,862	)		8,763			11,958		(8,723	)		3,235
TA PIMCO Tactical - Balanced Service Class		290,270		(920,567	)		(630,297	)		367,429		(1,704,524	)		(1,337,095	)
TA PIMCO Tactical - Conservative Service Class		467,595		(823,075	)		(355,480	)		186,335		(954,751	)		(768,416	)
TA PIMCO Tactical - Growth Service Class		239,047		(955,695	)		(716,648	)		513,316		(1,232,126	)		(718,810	)
TA PIMCO Total Return Initial Class		35,011		(92,800	)		(57,789	)		-		(7,651	)		(7,651	)
TA PIMCO Total Return Service Class		1,556,410		(4,368,748	)		(2,812,338	)		1,981,853		(5,024,295	)		(3,042,442	)
TA PineBridge Inflation Opportunities Service Class		442,076		(994,697	)		(552,621	)		473,162		(1,622,119	)		(1,148,957	)
TA ProFunds UltraBear Service Class (OAM)		9,304,476		(25,784,761	)		(16,480,285	)		31,101,854		(7,663,632	)		23,438,222
TA QS Investors Active Asset Allocation - Conservative Service Class		111,643		(901,286	)		(789,643	)		130,614		(1,319,318	)		(1,188,704	)
TA QS Investors Active Asset Allocation - Moderate Service Class		477,310		(2,308,487	)		(1,831,177	)		822,712		(3,192,449	)		(2,369,737	)
TA QS Investors Active Asset Allocation - Moderate Growth Service Class		411,024		(1,735,509	)		(1,324,485	)		452,183		(2,332,303	)		(1,880,120	)
TA Small/Mid Cap Value Initial Class		-		(28,702	)		(28,702	)		216		(8,685	)		(8,469	)
TA Small/Mid Cap Value Service Class		487,373		(589,521	)		(102,148	)		265,758		(462,047	)		(196,289	)

49

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4.  Change in Units (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
TA T. Rowe Price Small Cap Initial Class		1,375		(13,948	)		(12,573	)		3,979		(11,757	)		(7,778	)
TA T. Rowe Price Small Cap Service Class		652,753		(861,861	)		(209,108	)		400,824		(1,125,526	)		(724,702	)
TA TS&W International Equity Initial Class		900		(23,455	)		(22,555	)		74		(14,272	)		(14,198	)
TA TS&W International Equity Service Class		132,500		(151,534	)		(19,034	)		102,759		(177,317	)		(74,558	)
TA U.S. Equity Index Service Class		2,539,124		(560,027	)		1,979,097			513,948		(52,942	)		461,006
TA WMC US Growth Initial Class		804,120		(146,373	)		657,747			83,183		(246,997	)		(163,814	)
TA WMC US Growth Service Class		1,321,537		(676,083	)		645,454			292,725		(924,871	)		(632,146	)
Vanguard® - Capital Growth		-		-			-			-		-			-
Vanguard® - Conservative Allocation		-		-			-			-		-			-
Vanguard® - Diversified Value		-		-			-			-		-			-
Vanguard® Balanced		-		-			-			-		-			-
Vanguard® Equity Income		-		-			-			-		-			-
Vanguard® Equity Index		-		(54,305	)		(54,305	)		-		-			-
Vanguard® Global Bond Index		-		-			-			-		-			-
Vanguard® Growth		-		-			-			-		-			-
Vanguard® High Yield Bond		-		-			-			-		-			-
Vanguard® International		-		(41,630	)		(41,630	)		-		(612	)		(612	)
Vanguard® Mid-Cap Index		62,719		(27,647	)		35,072			-		-			-
Vanguard® Moderate Allocation		-		-			-			-		-			-
Vanguard® Money Market		-		-			-			-		-			-
Vanguard® Real Estate Index		35,822		(17,353	)		18,469			-		-			-
Vanguard® Short-Term Investment Grade		136,568		(60,523	)		76,045			-		-			-
Vanguard® Total Bond Market Index		135,569		(99,197	)		36,372			-		-			-
Vanguard® Total International Stock Market Index		-		-			-			-		-			-
Vanguard® Total Stock Market Index		-		-			-			-		-			-
Voya Global Perspectives Class S Shares		-		-			-			-		-			-
Voya Large Cap Value Class S Shares		-		-			-			-		-			-

50

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4.  Change in Units (continued)

Year Ended December 31, 2019

Year Ended December 31, 2018

Subaccount

Units Purchased

Units Redeemed and Transferred to/from

Net Increase (Decrease)

Units Purchased

Units Redeemed and Transferred to/from

Net Increase (Decrease)

Voya Strategic Allocation Conservative Class S Shares

-

-

-

-

-

-

Voya Strategic Allocation Moderate Class S Shares

-

-

-

-

-

-

Wanger International

-

-

-

-

-

-

Wanger USA

-

-

-

-

-

-

51

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4.  Change in Unit Dollars (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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	$	1,110,691	$	(1,098,434	)	$	12,257		$	1,949,402	$	(1,292,852	)	$	656,550
AB Growth and Income Class B Shares		4,074,361		(6,606,057	)		(2,531,696	)		2,284,325		(3,309,901	)		(1,025,576	)
AB Large Cap Growth Class B Shares		-		(92,511	)		(92,511	)		38,362		(115,934	)		(77,572	)
American Funds - Asset Allocation Class 2 Shares		8,399,811		(6,502,911	)		1,896,900			18,225,904		(14,352,753	)		3,873,151
American Funds - Bond Class 2 Shares		5,086,285		(4,130,739	)		955,546			2,089,064		(2,669,646	)		(580,582	)
American Funds - Growth Class 2 Shares		25,253,071		(10,373,609	)		14,879,462			14,563,406		(13,635,985	)		927,421
American Funds - Growth-Income Class 2 Shares		13,538,286		(5,132,425	)		8,405,861			11,860,488		(12,785,123	)		(924,635	)
American Funds - International Class 2 Shares		10,903,567		(5,076,599	)		5,826,968			21,181,907		(5,186,985	)		15,994,922
DFA VA Equity Allocation		-		-			-			-		-			-
DFA VA Global Bond		-		-			-			-		-			-
DFA VA Global Moderate Allocation		-		-			-			-		-			-
DFA VA International Small		-		-			-			-		-			-
DFA VA International Value		-		-			-			-		-			-
DFA VA Short-Term Fixed		-		-			-			-		-			-
DFA VA U.S. Large Value		-		-			-			-		-			-
DFA VA U.S. Targeted Value		-		-			-			-		-			-
Fidelity® VIP Balanced Service Class 2		7,018,315		(5,149,761	)		1,868,554			9,786,668		(5,778,865	)		4,007,803
Fidelity® VIP Contrafund® Initial Class		-		-			-			-		-			-
Fidelity® VIP Contrafund® Service Class 2		22,542,065		(7,591,804	)		14,950,261			5,964,809		(10,339,002	)		(4,374,193	)
Fidelity® VIP Equity-Income Service Class 2		-		(54,982	)		(54,982	)		47,977		(252,991	)		(205,014	)
Fidelity® VIP Growth Service Class 2		-		(46,849	)		(46,849	)		38,303		(125,050	)		(86,747	)
Fidelity® VIP Growth Opportunities Service Class 2		-		(89	)		(89	)		-		(82	)		(82	)
Fidelity® VIP Mid Cap Initial Class		-		-			-			-		-			-
Fidelity® VIP Mid Cap Service Class 2		8,029,335		(5,873,653	)		2,155,682			5,496,452		(17,683,661	)		(12,187,209	)
Fidelity® VIP Value Strategies Initial Class		-		(3,106	)		(3,106	)		-		(4	)		(4	)
Fidelity® VIP Value Strategies Service Class 2		4,385,370		(2,983,505	)		1,401,865			1,965,651		(4,096,610	)		(2,130,959	)
Franklin Allocation Class 4 Shares		213,660		(634,456	)		(420,796	)		4,114		(790,515	)		(786,401	)

52

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4. Change in Unit Dollars (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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)
Franklin Income Class 2 Shares	$	89,379	$	(713,719	)	$	(624,340	)	$	10,752	$	(594,154	)	$	(583,402	)
Franklin Mutual Shares Class 2 Shares		48,919		(137,435	)		(88,516	)		21,829		(155,229	)		(133,400	)
Franklin Templeton Foreign Class 2 Shares		26,984		(237,165	)		(210,181	)		18,209		(317,790	)		(299,581	)
Invesco V.I. American Franchise Series II Shares		-		(72,716	)		(72,716	)		-		(9,237	)		(9,237	)
Janus Henderson - Enterprise Service Shares		-		(5,614	)		(5,614	)		42,227		(100,375	)		(58,148	)
Janus Henderson - Global Research Service Shares		-		(15,171	)		(15,171	)		13,222		(74,497	)		(61,275	)
Janus Henderson - Mid Cap Value Service Shares		-		(78	)		(78	)		-		(92	)		(92	)
JPMorgan Insurance Trust Core Bond Class 1 Shares		100,600		(135,496	)		(34,896	)		-		(39,877	)		(39,877	)
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares		-		(2	)		(2	)		-		1			1
JPMorgan Insurance Trust Small Cap Core Class 1 Shares		-		(7,615	)		(7,615	)		-		(158	)		(158	)
JPMorgan Insurance Trust U.S. Equity Class 1 Shares		-		(1,184	)		(1,184	)		-		(1,080	)		(1,080	)
MFS® New Discovery Service Class		21,875		(166,770	)		(144,895	)		31,353		(288,401	)		(257,048	)
MFS® Total Return Service Class		9,773		(108,175	)		(98,402	)		8,701		(272,635	)		(263,934	)
State Street Total Return V.I.S. Class 3 Shares		2,319,741		(3,171,330	)		(851,589	)		2,075,647		(427,008	)		1,648,639
TA 60/40 Allocation Service Class		617,381		(183,757	)		433,624			651,554		(33,996	)		617,558
TA Aegon High Yield Bond Initial Class		411		(63,779	)		(63,368	)		7,334		(941	)		6,393
TA Aegon High Yield Bond Service Class		2,197,524		(1,512,434	)		685,090			1,182,296		(1,783,132	)		(600,836	)
TA Aegon U.S. Government Securities Initial Class		5,869		(90,962	)		(85,093	)		-		(20,356	)		(20,356	)
TA Aegon U.S. Government Securities Service Class		21,495,072		(48,979,272	)		(27,484,200	)		45,479,703		(15,349,476	)		30,130,227
TA American Funds Managed Risk - Balanced Service Class		14,242,178		(5,515,532	)		8,726,646			15,015,876		(4,674,950	)		10,340,926
TA Barrow Hanley Dividend Focused Initial Class		1,320		(367,776	)		(366,456	)		63,683		(345,328	)		(281,645	)
TA Barrow Hanley Dividend Focused Service Class		5,472,806		(6,665,915	)		(1,193,109	)		2,704,181		(3,085,650	)		(381,469	)
TA BlackRock Global Allocation Service Class		5,056,330		(7,391,639	)		(2,335,309	)		6,606,992		(12,188,520	)		(5,581,528	)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class		3,153,439		(1,499,548	)		1,653,891			4,179,377		(644,577	)		3,534,800
TA BlackRock Global Allocation Managed Risk - Growth Service Class		881,567		(1,256,390	)		(374,823	)		1,495,992		(1,051,146	)		444,846
TA BlackRock Global Real Estate Securities Initial Class		3,467		(11,258	)		(7,791	)		-		(1,105	)		(1,105	)

53

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4.  Change in Unit Dollars (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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 Global Real Estate Securities Service Class	$	1,120,227	$	(631,730	)	$	488,497		$	493,190	$	(1,108,100	)	$	(614,910	)
TA BlackRock Government Money Market Initial Class		185,034		(239,301	)		(54,267	)		87,987		(22,496	)		65,491
TA BlackRock Government Money Market Service Class		46,514,808		(37,684,489	)		8,830,319			44,240,163		(46,081,276	)		(1,841,113	)
TA BlackRock iShares Edge 100 Service Class		920,685		(301,779	)		618,906			770,489		(291,675	)		478,814
TA BlackRock iShares Edge 40 Initial Class		419		(6,783	)		(6,364	)		261		(858	)		(597	)
TA BlackRock iShares Edge 40 Service Class		2,084,808		(2,686,392	)		(601,584	)		1,960,367		(3,084,546	)		(1,124,179	)
TA BlackRock iShares Edge 50 Service Class		12,701,720		(1,635,216	)		11,066,504			6,704,404		(974,404	)		5,730,000
TA BlackRock iShares Edge 75 Service Class		5,078,279		(1,083,873	)		3,994,406			3,669,375		(1,237,241	)		2,432,134
TA BlackRock Tactical Allocation Service Class		2,006,221		(13,165,877	)		(11,159,656	)		3,915,969		(11,124,562	)		(7,208,593	)
TA Greystone International Growth Initial Class		23,884		(19,669	)		4,215			473		(6,202	)		(5,729	)
TA Greystone International Growth Service Class		1,255,167		(1,719,843	)		(464,676	)		1,972,299		(15,816,171	)		(13,843,872	)
TA International Equity Index Service Class		3,250,543		(720,304	)		2,530,239			2,199,889		(1,022,420	)		1,177,469
TA Janus Balanced Service Class		10,246,869		(11,026,068	)		(779,199	)		13,826,278		(11,336,124	)		2,490,154
TA Janus Mid-Cap Growth Initial Class		9,937		(69,243	)		(59,306	)		67,193		(10,066	)		57,127
TA Janus Mid-Cap Growth Service Class		5,029,769		(2,715,110	)		2,314,659			10,927,850		(1,462,153	)		9,465,697
TA JPMorgan Asset Allocation - Conservative Initial Class		-		-			-			-		(17,575	)		(17,575	)
TA JPMorgan Asset Allocation - Conservative Service Class		4,738,352		(10,058,670	)		(5,320,318	)		5,573,159		(7,490,203	)		(1,917,044	)
TA JPMorgan Asset Allocation - Growth Initial Class		-		-			-			-		(1	)		(1	)
TA JPMorgan Asset Allocation - Growth Service Class		2,521,136		(1,259,733	)		1,261,403			1,316,284		(1,949,758	)		(633,474	)
TA JPMorgan Asset Allocation - Moderate Initial Class		339,669		(668,858	)		(329,189	)		-		(34,981	)		(34,981	)
TA JPMorgan Asset Allocation - Moderate Service Class		22,542,874		(29,535,116	)		(6,992,242	)		35,958,570		(35,153,724	)		804,846
TA JPMorgan Asset Allocation - Moderate Growth Initial Class		-		(407,763	)		(407,763	)		-		(70	)		(70	)
TA JPMorgan Asset Allocation - Moderate Growth Service Class		4,945,953		(21,867,717	)		(16,921,764	)		17,920,165		(27,637,283	)		(9,717,118	)
TA JPMorgan Core Bond Service Class		14,498,004		(5,642,636	)		8,855,368			4,986,043		(4,428,451	)		557,592
TA JPMorgan Enhanced Index Initial Class		-		(65,115	)		(65,115	)		-		(34,496	)		(34,496	)
TA JPMorgan Enhanced Index Service Class		1,703,148		(2,685,608	)		(982,460	)		1,531,352		(2,308,887	)		(777,535	)

54

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4.  Change in Unit Dollars (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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 International Moderate Growth Service Class	$	1,340,031	$	(5,462,622	)	$	(4,122,591	)	$	6,284,165	$	(8,222,579	)	$	(1,938,414	)
TA JPMorgan Mid Cap Value Service Class		5,245,014		(5,146,790	)		98,224			2,939,151		(6,753,056	)		(3,813,905	)
TA JPMorgan Tactical Allocation Service Class		5,838,269		(9,129,187	)		(3,290,918	)		9,005,331		(12,975,219	)		(3,969,888	)
TA Legg Mason Dynamic Allocation - Balanced Service Class		2,340,580		(9,211,303	)		(6,870,723	)		3,903,876		(13,106,573	)		(9,202,697	)
TA Legg Mason Dynamic Allocation - Growth Service Class		1,269,125		(6,020,760	)		(4,751,635	)		2,977,749		(7,360,265	)		(4,382,516	)
TA Levin Large Cap Value Service Class		729,967		(9,469	)		720,498			155,145		(45,974	)		109,171
TA Madison Diversified Income Service Class		3,722,251		(355,384	)		3,366,867			1,856,553		(957,814	)		898,739
TA Managed Risk - Balanced ETF Service Class		10,618,287		(37,992,097	)		(27,373,810	)		25,942,401		(47,537,418	)		(21,595,017	)
TA Managed Risk - Conservative ETF Service Class		4,949,732		(14,750,967	)		(9,801,235	)		5,342,095		(13,261,520	)		(7,919,425	)
TA Managed Risk - Growth ETF Service Class		9,488,206		(40,347,115	)		(30,858,909	)		9,393,371		(44,800,662	)		(35,407,291	)
TA Market Participation Strategy Service Class		1,094,362		(3,010,531	)		(1,916,169	)		2,493,587		(5,551,482	)		(3,057,895	)
TA Morgan Stanley Capital Growth Initial Class		1,878,112		(37,061	)		1,841,051			6,506		(883	)		5,623
TA Morgan Stanley Capital Growth Service Class		23,282,659		(2,957,066	)		20,325,593			3,126,541		(1,990,478	)		1,136,063
TA Multi-Managed Balanced Initial Class		-		(2	)		(2	)		-		1			1
TA Multi-Managed Balanced Service Class		5,193,576		(13,488,897	)		(8,295,321	)		11,106,005		(12,989,480	)		(1,883,475	)
TA Multi-Manager Alternative Strategies Service Class		165,208		(78,464	)		86,744			120,392		(87,491	)		32,901
TA PIMCO Tactical - Balanced Service Class		1,415,490		(3,285,158	)		(1,869,668	)		1,748,065		(4,237,165	)		(2,489,100	)
TA PIMCO Tactical - Conservative Service Class		3,596,324		(4,294,375	)		(698,051	)		1,801,136		(4,739,212	)		(2,938,076	)
TA PIMCO Tactical - Growth Service Class		1,756,440		(3,200,268	)		(1,443,828	)		2,863,923		(3,438,845	)		(574,922	)
TA PIMCO Total Return Initial Class		59,664		(156,629	)		(96,965	)		-		(12,357	)		(12,357	)
TA PIMCO Total Return Service Class		6,647,039		(10,349,167	)		(3,702,128	)		7,974,434		(12,040,698	)		(4,066,264	)
TA PineBridge Inflation Opportunities Service Class		1,947,355		(1,821,464	)		125,891			2,948,447		(2,739,051	)		209,396
TA ProFunds UltraBear Service Class (OAM)		288,885		(878,604	)		(589,719	)		1,301,917		(305,384	)		996,533
TA QS Investors Active Asset Allocation - Conservative Service Class		632,587		(2,489,687	)		(1,857,100	)		1,366,652		(4,536,316	)		(3,169,664	)
TA QS Investors Active Asset Allocation - Moderate Service Class		3,504,647		(9,100,496	)		(5,595,849	)		6,872,899		(12,334,613	)		(5,461,714	)

55

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4.  Change in Unit Dollars (continued)

	Year Ended December 31, 2019								Year Ended December 31, 2018
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	$	2,107,692	$	(6,753,563	)	$	(4,645,871	)	$	3,211,307	$	(8,483,236	)	$	(5,271,929	)
TA Small/Mid Cap Value Initial Class		-		(434,930	)		(434,930	)		3,137		(136,524	)		(133,387	)
TA Small/Mid Cap Value Service Class		5,013,663		(2,291,247	)		2,722,416			2,007,626		(1,963,557	)		44,069
TA T. Rowe Price Small Cap Initial Class		4,174		(198,744	)		(194,570	)		35,207		(75,225	)		(40,018	)
TA T. Rowe Price Small Cap Service Class		10,835,420		(7,988,322	)		2,847,098			5,166,357		(9,880,027	)		(4,713,670	)
TA TS&W International Equity Initial Class		12,109		(49,996	)		(37,887	)		188		(40,670	)		(40,482	)
TA TS&W International Equity Service Class		1,303,055		(735,417	)		567,638			676,937		(870,727	)		(193,790	)
TA U.S. Equity Index Service Class		31,643,656		(7,175,503	)		24,468,153			5,957,181		(599,432	)		5,357,749
TA WMC US Growth Initial Class		1,823,912		(322,572	)		1,501,340			192,117		(513,869	)		(321,752	)
TA WMC US Growth Service Class		11,456,247		(3,037,784	)		8,418,463			3,014,129		(4,691,261	)		(1,677,132	)
Vanguard® - Capital Growth		-		-			-			-		-			-
Vanguard® - Conservative Allocation		-		-			-			-		-			-
Vanguard® - Diversified Value		-		-			-			-		-			-
Vanguard® Balanced		-		-			-			-		-			-
Vanguard® Equity Income		-		-			-			-		-			-
Vanguard® Equity Index		-		(1,072,521	)		(1,072,521	)		-		(1	)		(1	)
Vanguard® Global Bond Index		-		-			-			-		-			-
Vanguard® Growth		-		-			-			-		-			-
Vanguard® High Yield Bond		-		-			-			-		-			-
Vanguard® International		-		(632,356	)		(632,356	)		-		(9,908	)		(9,908	)
Vanguard® Mid-Cap Index		1,130,279		(547,094	)		583,185			-		-			-
Vanguard® Moderate Allocation		-		-			-			-		-			-
Vanguard® Money Market		-		-			-			-		-			-
Vanguard® Real Estate Index		506,049		(266,638	)		239,411			-		-			-
Vanguard® Short-Term Investment Grade		1,459,722		(663,023	)		796,699			-		-			-
Vanguard® Total Bond Market Index		1,462,216		(1,113,500	)		348,716			-		(1	)		(1	)

56

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

4.  Change in Unit Dollars (continued)

Year Ended December 31, 2019

Year Ended December 31, 2018

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)

Vanguard® Total International Stock Market Index

$

-

$

-

$

-

$

-

$

-

$

-

Vanguard® Total Stock 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

-

-

-

-

-

-

57

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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
	12/31/2019		1,415,672	$	15.18	to	$	11.79	$	5,775,013		2.35	%		0.40	%	to	2.70	%		17.73	%	to	15.10	%
	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	)
AB Growth and Income Class B Shares
	12/31/2019		4,287,814		19.68	to		2.21		24,808,664		1.04			0.40		to	2.50			23.12		to	20.60
	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	)
AB Large Cap Growth Class B Shares
	12/31/2019		110,099		3.54	to		2.65		398,618		-			1.15		to	2.50			32.84		to	31.09
	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
American Funds - Asset Allocation Class 2 Shares
	12/31/2019		10,219,303		17.00	to		12.29		66,817,584		1.95			0.60		to	2.80			20.51		to	17.93
	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	)
American Funds - Bond Class 2 Shares
	12/31/2019		4,067,969		11.32	to		10.41		17,729,897		2.60			0.60		to	2.80			8.70		to	6.38
	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	)
American Funds - Growth Class 2 Shares
	12/31/2019		5,153,853		24.27	to		15.19		72,856,161		0.79			0.60		to	2.80			29.99		to	27.21
	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
American Funds - Growth-Income Class 2 Shares
	12/31/2019		3,578,073		21.87	to		13.80		45,989,717		1.80			0.60		to	2.80			25.38		to	22.70
	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	)
American Funds - International Class 2 Shares
	12/31/2019		11,158,019		14.76	to		12.98		40,863,027		1.55			0.60		to	2.80			22.15		to	19.54
	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	)

58

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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
DFA VA Equity Allocation
	12/31/2019	(1)		-	$	10.04	to	$	10.04	$	-		-	%		0.27	%	to	0.47	%		-	%	to	-	%
DFA VA Global Bond
	12/31/2019	(1)		-		10.01	to		10.01		-		-			0.27		to	0.47			-		to	-
DFA VA Global Moderate Allocation
	12/31/2019	(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-
DFA VA International Small
	12/31/2019	(1)		-		10.15	to		10.14		-		-			0.27		to	0.47			-		to	-
DFA VA International Value
	12/31/2019	(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-
DFA VA Short-Term Fixed
	12/31/2019	(1)		-		10.00	to		10.00		-		-			0.27		to	0.47			-		to	-
DFA VA U.S. Large Value
	12/31/2019	(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-
DFA VA U.S. Targeted Value
	12/31/2019	(1)		-		9.99	to		9.99		-		-			0.27		to	0.47			-		to	-
Fidelity® VIP Balanced Service Class 2
	12/31/2019			7,129,126		17.71	to		12.71		34,772,178		1.59			0.40		to	2.50			23.62		to	21.09
	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	)
Fidelity® VIP Contrafund® Initial Class
	12/31/2019			-		21.14	to		20.65		-		-			0.65		to	1.00			30.73		to	30.27
	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	)
Fidelity® VIP Contrafund® Service Class 2
	12/31/2019			7,212,975		20.74	to		3.25		64,338,846		0.24			0.40		to	2.50			30.75		to	28.07
	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	)
Fidelity® VIP Equity-Income Service Class 2
	12/31/2019			246,717		2.01	to		2.13		568,345		1.83			1.15		to	2.50			25.66		to	24.01
	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	)
Fidelity® VIP Growth Service Class 2
	12/31/2019			347,776		3.30	to		2.54		1,145,730		0.05			1.15		to	2.50			32.45		to	30.71
	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
Fidelity® VIP Growth Opportunities Service Class 2
	12/31/2019			1,150		3.72	to		2.75		3,258		-			1.25		to	1.55			38.76		to	38.35
	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

59

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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 Mid Cap Initial Class
	12/31/2019		-	$	17.95	to	$	17.54	$	-		-	%		0.65	%	to	1.00	%		22.65	%	to	22.22	%
	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	)
Fidelity® VIP Mid Cap Service Class 2
	12/31/2019		2,704,386		17.62	to		3.55		27,192,549		0.68			0.40		to	2.50			22.68		to	20.17
	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	)
Fidelity® VIP Value Strategies Initial Class
	12/31/2019		1,534		17.14	to		16.75		26,305		1.60			0.65		to	1.00			33.66		to	33.19
	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	)
Fidelity® VIP Value Strategies Service Class 2
	12/31/2019		1,436,606		16.81	to		3.00		13,100,877		1.43			0.40		to	2.50			33.56		to	30.83
	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	)
Franklin Allocation Class 4 Shares
	12/31/2019		1,035,878		2.27	to		11.10		2,266,701		3.39			1.30		to	2.65			18.03		to	16.48
	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	)
Franklin Income Class 2 Shares
	12/31/2019		1,442,333		1.62	to		1.54		2,298,317		5.36			1.15		to	2.50			14.74		to	13.23
	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	)
Franklin Mutual Shares Class 2 Shares
	12/31/2019		336,678		1.54	to		1.85		521,168		1.70			1.15		to	2.50			21.18		to	19.58
	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	)
Franklin Templeton Foreign Class 2 Shares
	12/31/2019		1,045,944		1.06	to		1.19		1,084,620		1.75			1.15		to	2.50			11.25		to	9.78
	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	)
Invesco V.I. American Franchise Series II Shares
	12/31/2019		69,582		2.40	to		2.17		161,362		-			1.15		to	2.50			34.88		to	33.10
	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

60

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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
Janus Henderson - Enterprise Service Shares
	12/31/2019		80,431	$	4.08	to	$	3.49	$	388,352		0.05	%		1.15	%	to	2.50	%		33.62	%	to	31.86	%
	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
Janus Henderson - Global Research Service Shares
	12/31/2019		188,381		2.10	to		1.66		360,718		0.86			1.15		to	2.50			27.25		to	25.57
	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	)
Janus Henderson - Mid Cap Value Service Shares
	12/31/2019		900		2.96	to		2.79		2,579		1.48			1.25		to	1.55			28.44		to	28.06
	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	)
JPMorgan Insurance Trust Core Bond Class 1 Shares
	12/31/2019		312,512		1.38	to		10.46		426,543		2.46			1.25		to	2.50			6.84		to	5.54
	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	)
JPMorgan Insurance Trust Mid Cap Value Class 1 Shares
	12/31/2019		52,138		3.81	to		11.64		197,917		1.59			1.25		to	2.50			25.20		to	23.67
	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	)
JPMorgan Insurance Trust Small Cap Core Class 1 Shares
	12/31/2019		308		3.80	to		11.58		1,166		0.74			1.25		to	2.50			23.04		to	21.54
	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	)
JPMorgan Insurance Trust U.S. Equity Class 1 Shares
	12/31/2019		24,613		4.11	to		13.83		100,581		0.85			1.25		to	2.50			30.13		to	28.54
	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	)
MFS® New Discovery Service Class
	12/31/2019		494,433		3.60	to		3.78		1,897,707		-			1.15		to	2.50			39.67		to	37.83
	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	)
MFS® Total Return Service Class
	12/31/2019		491,795		1.92	to		1.98		1,004,119		2.13			1.15		to	2.50			18.75		to	17.19
	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	)

61

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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
State Street Total Return V.I.S. Class 3 Shares
	12/31/2019			1,286,288	$	14.25	to	$	11.47	$	4,647,034		2.05	%		0.40	%	to	2.70	%		15.11	%	to	12.53	%
	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	)
TA 60/40 Allocation Service Class
	12/31/2019			101,302		11.55	to		11.21		1,153,458		0.18			0.20		to	2.00			19.89		to	17.75
	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
	12/31/2019			25,128		13.51	to		2.23		82,928		5.24			0.45		to	2.50			13.70		to	11.43
	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	)
TA Aegon High Yield Bond Service Class
	12/31/2019			1,767,357		13.17	to		11.09		7,895,861		6.00			0.20		to	2.50			13.74		to	11.19
	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	)
TA Aegon U.S. Government Securities Initial Class
	12/31/2019			89,828		1.53	to		1.20		186,543		1.84			1.25		to	2.50			5.29		to	4.00
	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	)
TA Aegon U.S. Government Securities Service Class
	12/31/2019			9,041,053		10.72	to		10.10		33,204,191		1.59			0.20		to	2.50			6.14		to	3.72
	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	)
TA American Funds Managed Risk - Balanced Service Class
	12/31/2019			6,177,727		12.84	to		11.73		75,573,079		1.26			0.20		to	2.50			17.57		to	14.93
	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
	12/31/2019			1,100,009		18.09	to		2.05		3,293,974		2.49			0.45		to	2.50			23.35		to	20.89
	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	)
TA Barrow Hanley Dividend Focused Service Class
	12/31/2019			4,708,955		17.61	to		11.65		23,251,761		2.25			0.20		to	2.50			23.33		to	20.56
	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	)

62

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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 Allocation Service Class
	12/31/2019			19,575,170	$	13.71	to	$	11.43	$	68,154,890		0.95	%		0.20	%	to	2.50	%		17.61	%	to	14.97	%
	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	)
TA BlackRock Global Allocation Managed Risk - Balanced Service Class
	12/31/2019			1,420,910		11.28	to		11.01		15,233,662		3.00			0.20		to	2.50			14.48		to	11.91
	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
	12/31/2019			938,245		11.52	to		11.55		10,262,239		3.32			0.20		to	2.50			17.69		to	15.05
	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	-
TA BlackRock Global Real Estate Securities Initial Class
	12/31/2019			4,917		12.82	to		2.68		15,223		0.80			0.45		to	2.50			24.63		to	22.14
	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	)
TA BlackRock Global Real Estate Securities Service Class
	12/31/2019			1,280,292		12.49	to		11.72		6,407,054		0.61			0.20		to	2.50			24.64		to	21.84
	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	)
TA BlackRock Government Money Market Initial Class
	12/31/2019			135,343		1.00	to		0.80		179,063		1.97			1.25		to	2.50			0.71		to	(0.51	)
	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	)
TA BlackRock Government Money Market Service Class
	12/31/2019			8,862,256		10.03	to		0.78		29,386,715		1.67			0.20		to	2.50			1.51		to	(0.79	)
	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	)
TA BlackRock iShares Edge 100 Service Class
	12/31/2019			1,720,071		15.24	to		13.42		25,582,081		1.52			0.20		to	2.50			24.33		to	21.54
	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 iShares Edge 40 Initial Class
	12/31/2019			31,980		1.96	to		1.69		61,195		2.17			1.25		to	2.50			13.88		to	12.50
	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	)

63

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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 iShares Edge 40 Service Class
	12/31/2019			5,634,719	$	12.91	to	$	1.24	$	21,835,279		2.01	%		0.20	%	to	2.50	%		14.87	%	to	12.30	%
	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	)
TA BlackRock iShares Edge 50 Service Class
	12/31/2019			2,157,603		12.97	to		11.84		26,937,300		0.95			0.20		to	2.50			15.80		to	13.21
	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 iShares Edge 75 Service Class
	12/31/2019			1,582,836		13.96	to		12.62		21,407,528		0.95			0.20		to	2.50			20.04		to	17.34
	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
	12/31/2019			23,323,488		14.35	to		1.33		97,945,168		2.17			0.20		to	2.50			16.82		to	14.20
	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	)
TA Greystone International Growth Initial Class
	12/31/2019			59,963		13.83	to		1.74		113,724		1.66			0.45		to	2.50			27.11		to	24.57
	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	)
TA Greystone International Growth Service Class
	12/31/2019			1,597,061		13.48	to		12.37		8,079,049		1.35			0.20		to	2.50			27.15		to	24.30
	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	)
TA International Equity Index Service Class
	12/31/2019			380,767		11.47	to		10.80		4,255,261		1.32			0.35		to	2.65			20.68		to	17.97
	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
	12/31/2019			14,667,063		17.29	to		13.09		102,356,309		1.38			0.20		to	2.50			21.53		to	18.80
	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	)
TA Janus Mid-Cap Growth Initial Class
	12/31/2019			4,730		19.59	to		2.33		21,270		0.03			0.45		to	2.50			36.10		to	33.38
	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	)

64

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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 Janus Mid-Cap Growth Service Class
	12/31/2019		3,279,903	$	19.08	to	$	15.81	$	20,122,605		-	%		0.20	%	to	2.50	%		36.06	%	to	33.00	%
	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	)
TA JPMorgan Asset Allocation - Conservative Initial Class
	12/31/2019		-		2.01	to		1.80		-		-			1.25		to	2.50			12.50		to	11.12
	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	)
TA JPMorgan Asset Allocation - Conservative Service Class
	12/31/2019		18,105,007		13.17	to		11.28		63,826,265		2.35			0.20		to	2.50			13.32		to	10.75
	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	)
TA JPMorgan Asset Allocation - Growth Initial Class
	12/31/2019		16,941		2.49	to		2.43		41,169		1.74			1.25		to	2.50			24.50		to	22.98
	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	)
TA JPMorgan Asset Allocation - Growth Service Class
	12/31/2019		1,582,914		16.88	to		12.91		9,822,868		1.49			0.20		to	2.50			25.61		to	22.79
	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	)
TA JPMorgan Asset Allocation - Moderate Initial Class
	12/31/2019		174,302		2.23	to		2.04		378,461		1.65			1.25		to	2.50			14.98		to	13.58
	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	)
TA JPMorgan Asset Allocation - Moderate Service Class
	12/31/2019		73,968,848		14.18	to		1.83		314,877,570		1.97			0.20		to	2.50			15.95		to	13.34
	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	)
TA JPMorgan Asset Allocation - Moderate Growth Initial Class
	12/31/2019		21,059		2.38	to		2.24		48,802		2.50			1.25		to	2.50			18.53		to	17.08
	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	)
TA JPMorgan Asset Allocation - Moderate Growth Service Class
	12/31/2019		41,813,237		15.37	to		1.43		187,724,351		1.94			0.20		to	2.50			19.55		to	16.87
	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	)

65

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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 Core Bond Service Class
	12/31/2019			10,793,962	$	11.41	to	$	10.43	$	41,431,886		2.36	%		0.20	%	to	2.50	%		8.04	%	to	5.61	%
	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	)
TA JPMorgan Enhanced Index Initial Class
	12/31/2019			173,973		21.86	to		2.48		751,989		1.17			0.45		to	2.50			30.45		to	27.84
	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	)
TA JPMorgan Enhanced Index Service Class
	12/31/2019			564,116		21.30	to		13.57		5,689,537		0.89			0.20		to	2.50			30.43		to	27.50
	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	)
TA JPMorgan International Moderate Growth Service Class
	12/31/2019			14,401,813		12.91	to		1.25		44,185,827		2.03			0.20		to	2.50			17.37		to	14.74
	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	)
TA JPMorgan Mid Cap Value Service Class
	12/31/2019			1,664,311		18.37	to		2.55		18,129,091		1.14			0.20		to	2.50			25.74		to	22.92
	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	)
TA JPMorgan Tactical Allocation Service Class
	12/31/2019			15,867,118		12.91	to		10.92		82,867,081		2.08			0.20		to	2.50			11.69		to	9.18
	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	)
TA Legg Mason Dynamic Allocation - Balanced Service Class
	12/31/2019			15,186,512		13.30	to		1.17		85,177,436		1.60			0.20		to	2.50			15.83		to	13.20
	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	)
TA Legg Mason Dynamic Allocation - Growth Service Class
	12/31/2019			9,594,730		13.86	to		1.29		55,719,855		1.37			0.20		to	2.50			16.59		to	13.94
	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	)
TA Levin Large Cap Value Service Class
	12/31/2019			83,542		10.55	to		10.24		866,163		0.33			0.20		to	2.00			16.76		to	14.68
	12/31/2018	(1)		10,583		9.03	to		8.93		95,017		-			0.20		to	2.00			-		to	-

66

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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 Madison Diversified Income Service Class
	12/31/2019			479,428	$	13.86	to	$	11.59	$	5,773,001		1.77	%		0.20	%	to	2.50	%		14.71	%	to	12.14	%
	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
	12/31/2019			92,287,393		13.81	to		1.18		453,178,914		1.97			0.20		to	2.50			15.42		to	12.79
	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	)
TA Managed Risk - Conservative ETF Service Class
	12/31/2019			21,020,453		13.19	to		1.20		76,229,911		2.07			0.20		to	2.50			11.97		to	9.42
	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	)
TA Managed Risk - Growth ETF Service Class
	12/31/2019			82,914,893		14.92	to		1.42		354,763,682		1.75			0.20		to	2.50			19.17		to	16.46
	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	)
TA Market Participation Strategy Service Class
	12/31/2019			6,372,242		14.95	to		11.76		33,306,180		0.91			0.20		to	2.50			18.34		to	15.69
	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	)
TA Morgan Stanley Capital Growth Initial Class
	12/31/2019			497,222		10.55	to		3.46		2,070,531		-			0.45		to	2.50			22.21		to	20.72
	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
TA Morgan Stanley Capital Growth Service Class
	12/31/2019			2,312,397		28.63	to		3.79		30,451,810		-			0.20		to	2.50			23.22		to	20.46
	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
TA Multi-Managed Balanced Initial Class
	12/31/2019			12,065		3.03	to		2.59		35,669		1.66			1.25		to	2.50			20.27		to	18.80
	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	)
TA Multi-Managed Balanced Service Class
	12/31/2019			14,676,803		16.94	to		12.28		140,845,790		1.42			0.20		to	2.50			21.25		to	18.53
	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	)

67

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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 Multi-Manager Alternative Strategies Service Class
	12/31/2019		39,931	$	10.76	to	$	9.99	$	408,149		0.80	%		0.20	%	to	2.50	%		8.05	%	to	5.59	%
	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	)
TA PIMCO Tactical - Balanced Service Class
	12/31/2019		8,706,125		14.24	to		1.18		35,792,828		0.16			0.20		to	2.50			19.44		to	16.76
	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	)
TA PIMCO Tactical - Conservative Service Class
	12/31/2019		5,073,711		13.81	to		1.19		22,878,376		0.10			0.20		to	2.50			17.33		to	14.70
	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	)
TA PIMCO Tactical - Growth Service Class
	12/31/2019		6,130,646		14.80	to		1.33		38,321,521		-			0.20		to	2.50			21.31		to	18.59
	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	)
TA PIMCO Total Return Initial Class
	12/31/2019		144,114		1.79	to		1.43		251,069		2.32			1.25		to	2.50			7.08		to	5.77
	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	)
TA PIMCO Total Return Service Class
	12/31/2019		24,181,100		11.29	to		10.41		71,713,529		2.25			0.20		to	2.50			8.00		to	5.55
	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	)
TA PineBridge Inflation Opportunities Service Class
	12/31/2019		6,890,549		10.06	to		10.28		16,265,210		2.29			0.20		to	2.50			7.99		to	5.56
	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	)
TA ProFunds UltraBear Service Class (OAM)
	12/31/2019		18,877,817		0.03	to		3.94		453,736		-			1.00		to	2.50			(43.45	)	to	(44.25	)
	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	)
TA QS Investors Active Asset Allocation - Moderate Service Class
	12/31/2019		21,167,125		12.83	to		1.19		85,725,821		1.82			0.20		to	2.50			10.91		to	8.39
	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	)

68

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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 QS Investors Active Asset Allocation - Conservative Service Class
	12/31/2019			6,386,750	$	12.59	to	$	1.12	$	22,160,340		1.98	%		0.20	%	to	2.50	%		11.01	%	to	8.49	%
	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	)
TA QS Investors Active Asset Allocation - Moderate Growth Service Class
	12/31/2019			10,905,328		13.18	to		1.18		48,681,743		1.68			0.20		to	2.50			11.13		to	8.61
	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	)
TA Small/Mid Cap Value Initial Class
	12/31/2019			258,481		18.99	to		14.57		2,957,163		0.94			0.45		to	1.55			24.72		to	23.37
	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	)
TA Small/Mid Cap Value Service Class
	12/31/2019			3,108,705		18.50	to		11.63		16,559,758		0.77			0.20		to	2.50			24.69		to	21.89
	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	)
TA T. Rowe Price Small Cap Initial Class
	12/31/2019			55,309		23.13	to		3.77		179,389		-			0.45		to	2.50			32.18		to	29.53
	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
TA T. Rowe Price Small Cap Service Class
	12/31/2019			4,617,104		22.54	to		13.73		42,539,360		-			0.20		to	2.50			32.12		to	29.16
	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
TA TS&W International Equity Initial Class
	12/31/2019			259,790		13.47	to		1.76		680,785		1.42			0.45		to	2.50			20.52		to	18.11
	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	)
TA TS&W International Equity Service Class
	12/31/2019			670,221		13.12	to		11.61		4,022,769		1.23			0.20		to	2.50			20.49		to	17.79
	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	)
TA U.S. Equity Index Service Class
	12/31/2019			2,521,965		13.95	to		13.13		34,204,134		0.49			0.35		to	2.65			30.44		to	27.52
	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	-

69

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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 Initial Class
	12/31/2019			2,182,247	$	25.98	to	$	3.13	$	5,281,265		0.12	%		0.45	%	to	2.50	%		39.42	%	to	36.63	%
	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
TA WMC US Growth Service Class
	12/31/2019			4,841,963		25.30	to		16.42		36,887,190		-			0.20		to	2.50			39.40		to	36.27
	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
Vanguard® - Capital Growth
	12/31/2019	(1)		-		10.00	to		10.00		-		-			0.27		to	0.47			-		to	-
Vanguard® - Conservative Allocation
	12/31/2019	(1)		-		10.02	to		10.02		-		-			0.27		to	0.47			-		to	-
Vanguard® - Diversified Value
	12/31/2019	(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-
Vanguard® Balanced
	12/31/2019	(1)		-		10.02	to		10.02		-		-			0.27		to	0.47			-		to	-
Vanguard® Equity Income
	12/31/2019	(1)		-		10.01	to		10.01		-		-			0.27		to	0.47			-		to	-
Vanguard® Equity Index
	12/31/2019			-		22.23	to		21.75		-		3.38			0.27		to	1.20			30.45		to	29.74
	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
Vanguard® Global Bond Index
	12/31/2019	(1)		-		10.00	to		10.00		-		-			0.27		to	0.47			-		to	-
Vanguard® Growth
	12/31/2019	(1)		-		10.02	to		10.02		-		-			0.27		to	0.47			-		to	-
Vanguard® High Yield Bond
	12/31/2019	(1)		-		10.00	to		10.00		-		-			0.27		to	0.47			-		to	-
Vanguard® International
	12/31/2019			-		17.44	to		17.06		-		2.78			0.27		to	1.20			30.37		to	29.65
	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	)
Vanguard® Mid-Cap Index
	12/31/2019			35,072		20.02	to		19.58		689,112		1.39			0.27		to	1.20			30.02		to	29.31
	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	)
Vanguard® Moderate Allocation
	12/31/2019	(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-
Vanguard® Money Market
	12/31/2019	(1)		-		10.00	to		10.00		-		0.07			0.27		to	0.47			-		to	-

70

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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
Vanguard® Real Estate Index
	12/31/2019			18,469	$	15.77	to	$	15.43	$	285,300		2.72	%		0.27	%	to	1.20	%		27.97	%	to	27.27	%
	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
Vanguard® Short-Term Investment Grade
	12/31/2019			76,045		11.06	to		10.82		824,640		2.61			0.27		to	1.20			5.01		to	4.43
	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
Vanguard® Total Bond Market Index
	12/31/2019			70,627		11.32	to		11.08		782,393		3.09			0.27		to	1.20			7.97		to	7.38
	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	)
Vanguard® Total International Stock Market Index
	12/31/2019	(1)		-		10.07	to		10.06		-		-			0.27		to	0.47			-		to	-
Vanguard® Total Stock Market Index
	12/31/2019	(1)		-		10.03	to		10.03		-		-			0.27		to	0.47			-		to	-
Voya Global Perspectives Class S Shares
	12/31/2019			-		11.67	to		11.22		-		-			1.29		to	2.14			16.56		to	15.58
	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
	12/31/2019			-		13.01	to		12.50		-		-			1.29		to	2.14			23.18		to	22.14
	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	-
Voya Strategic Allocation Conservative Class S Shares
	12/31/2019			-		11.62	to		11.17		-		-			1.29		to	2.14			13.01		to	12.05
	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
	12/31/2019			-		12.22	to		11.75		-		-			1.29		to	2.14			17.42		to	16.42
	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
	12/31/2019			-		14.44	to		14.17		-		-			0.45		to	0.90			29.41		to	28.83
	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	)

71

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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
Wanger USA
	12/31/2019		-	$	21.87	to	$	21.46	$	-		-	%		0.45	%	to	0.90	%		30.51	%	to	29.93	%
	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	)

⁽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.

72

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

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 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.

73

Transamerica Financial Life Insurance Company

Separate Account VA BNY

Notes to Financial Statements

December 31, 2019

8. Subsequent Events

The Separate Account has evaluated the financial statements for subsequent events through the date which the financial statements were issued. During this period, there were no subsequent events requiring recognition in the financial statements.

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. Since January 2020, the Coronavirus disease (COVID-19) pandemic and economic uncertainties have arisen which have impacted the Separate Account’s net assets. The extent to which the COVID-19 pandemic will continue to impact the net assets will depend on future developments, which are highly uncertain and cannot be estimated, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic.

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.

74

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)		Resolution of the Board of Directors of Transamerica Life Insurance Company authorizing establishment of the Separate Account. Note 1
		(2)		Not Applicable.
		(3)	(a)	Amended and restated Principal Underwriting Agreement by and between Transamerica Life Insurance Company, on its own behalf and on the behalf of the Separate Account, and Transamerica Capital, Inc. Note 10
			(b)	Broker/Dealer and Sales Agreement. Note 1
		(4)	(a)	Policy. Note 24
			(b)	Policy with Access Rider. Note 24
			(c)	Policy Rider (Transamerica Principal Optimizer). Note 24
			(d)	Policy Rider (Retirement Income Max 1.2 Compounding). Note 24
			(e)	Policy Rider (Retirement Income Choice 1.7 Simple Enhanced). Note 24
			(f)	Policy Rider (Retirement Income Choice 1.7 Simple Non-Enhanced). Note 24
			(g)	Policy Rider (Transamerica Income Edge 1.2). Note 24
		(5)	(a)	Application. Note 24
		(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 (AllianceBernstein). Note 3
			(a)(1)	Amendment No. 1 to Participation Agreement (AllianceBernstein). Note 4
			(a)(2)	Amendment No. 5 to Participation Agreement (AllianceBernstein). Note 5
			(a)(3)	Amendment No. 11 to Participation Agreement (AllianceBernstein). Note 6
			(a)(4)	Amendment No. 13 to Participation Agreement (AllianceBernstein). Note 15
			(a)(5)	Amended Schedule A to Participation Agreement dated May 1, 2015 (AllianceBernstein). Note 17
			(a)(6)	Amended Schedule A to Participation Agreement dated May 1, 2017 (AllianceBernstein). Note 22

(8)	(b)	Participation Agreement (American Funds). Note 7
	(b)(1)	Amendment No. 2 to Participation Agreement (American Funds). Note 7
	(b)(2)	Amendment No. 6 to Participation Agreement (American Funds). Note 1
	(b)(3)	Amendment No. 8 to Participation Agreement (American Funds). Note 14
	(b)(4)	Amendment No. 9 to Participation Agreement (American Funds). Note 16
	(b)(5)	Amendment No. 10 to Participation Agreement (American Funds). Note 21
	(b)(6)	Amendment No. 11 to Participation Agreement (American Funds). Note 22
(8)	(c)	Participation Agreement (Fidelity). Note 8
	(c)(1)	Amendment No. 7 to Participation Agreement (Fidelity). Note 9
	(c)(2)	Summary Prospectus Agreement (Fidelity). Note 1
	(c)(3)	Amendment No. 8 to Participation Agreement (Fidelity). Note 11
	(c)(4)	Amended Schedule A to Participation Agreement dated May 1, 2017 (Fidelity). Note 22
(8)	(d)	Participation Agreement (GE). Note 7
	(d)(1)	Amendment No. 1 to Participation Agreement (GE). Note 6
	(d)(2)	Amendment No. 2 to Participation Agreement (GE). Note 11
	(d)(3)	Amendment No. 3 to Participation Agreement (GE/SSGA). Note 23
(8)	(e)	Participation Agreement (TST). Note 12
	(e)(1)	Amendment No. 1 to Participation Agreement (TST). Note 11
	(e)(2)	Amended Schedule A to Participation Agreement dated September 18, 2013 (TST). Note 13
	(e)(3)	Amended Schedule A to Participation Agreement dated October 31, 2013 (TST). Note 14
	(e)(4)	Amended Schedule A to Participation Agreement dated May 1, 2014 (TST). Note 15
	(e)(5)	Amendment No. 2 to Participation Agreement (TST). Note 16
	(e)(6)	Amended Schedule A to Participation Agreement dated May 1, 2015 (TST). Note 17
	(e)(7)	Amended Schedule A to Participation Agreement dated July 1, 2015 (TST). Note 18
	(e)(8)	Amended Schedule A to Participation Agreement dated December 18, 2015 (TST). Note 19
	(e)(9)	Amended Schedule A to Participation Agreement dated March 21, 2016 (TST). Note 19
	(e)(10)	Amended Schedule A to Participation Agreement dated May 1, 2016 (TST). Note 19
	(e)(11)	Amended Schedule A to Participation Agreement dated December 16, 2016 (TST). Note 20

		(e)(12)	Amended Schedule A to Participation Agreement dated May 1, 2017 (TST). Note 22
		(e)(13)	Amended Schedule A to Participation Agreement dated September 29, 2017 (TST). Note 23
	(9)		Opinion and Consent of Counsel. Note 26
	(10)		Consent of Independent Registered Public Accounting Firm. Note 26
	(11)		Not applicable.
	(12)		Not applicable.
	(13)		Powers of Attorney. (Blake S. Bostwick, Fred Gingerich, Mark W. Mullin, Jay Orlandi, David Schulz, C. Michiel van Katwijk) Note 25
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 Post-Effective Amendment No. 3 to Form N-4 Registration Statement (File No. 333-26209) filed on April 28, 2000.
Note 4.	Incorporated herein by reference to Post-Effective Amendment No. 11 to Form N-4 Registration Statement (File No. 333-7509) filed on January 18, 2002.
Note 5.	Incorporated herein by reference to Pre-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 333-125817) filed on August 29, 2005.
Note 6.	Incorporated herein by reference to Post-Effective Amendment No. 21 to Form N-4 Registration Statement (File No. 333-125817) filed on October 7, 2011.
Note 7.	Incorporated herein by reference to Post-Effective Amendment No. 47 to Form N-4 Registration Statement (File No. 33-33085) filed on November 19, 2009.
Note 8.	Incorporated herein by reference to Post-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 333-125817) filed on April 27, 2006.
Note 9.	Incorporated herein by reference to Post-Effective Amendment No. 26 to Form N-4 Registration Statement (File No. 333-125817) filed on September 10, 2012.
Note 10.	Incorporated herein by reference to Pre-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 333-186029) filed on April 10, 2013.
Note 11.	Incorporated herein by reference to Post-Effective Amendment No. 59 to Form N-4 Registration Statement (File No. 33-33085) filed on August 16, 2013.
Note 12.	Incorporated herein by reference to the Initial Filing of Form N-4 Registration Statement (File No. 333-187913) filed on April 15, 2013.
Note 13.	Incorporated herein by reference to Pre-Effective Amendment No. 2 to Form N-4 Registration Statement (File No. 333-189435) filed on October 2, 2013.

Note 14.	Incorporated herein by reference to Post-Effective Amendment No. 2 to Form N-4 Registration Statement (File No. 333-186031) filed on February 21, 2014.
Note 15.	Incorporated herein by reference to Post-Effective Amendment No. 2 to Form N-4 Registration Statement (File No. 333-186029) filed on April 29, 2014.
Note 16.	Incorporated herein by reference to Post-Effective Amendment No. 67 to Form N-4 Registration Statement (File No. 33-56908) filed on December 30, 2014.
Note 17.	Incorporated herein by reference to Post-Effective Amendment No. 3 to Form N-4 Registration Statement (File No. 333-186029) filed on April 24, 2015.
Note 18.	Incorporated herein by reference to Post-Effective Amendment No. 4 to Form N-4 Registration Statement (File No. 333-186029) filed on October 13, 2015.
Note 19.	Incorporated herein by reference to Post-Effective Amendment No. 10 to Form N-4 Registration Statement (File No. 333-186029) filed on April 27, 2016.
Note 20.	Incorporated herein by reference to the Initial Filing of Form N-4 Registration Statement (File No. 333-215598) filed on January 18, 2017.
Note 21.	Incorporated herein by reference to Post-Effective Amendment No. 12 to Form N-4 Registration Statement (File No. 333-189435) filed on August 8, 2016.
Note 22.	Incorporated herein by reference to Post-Effective Amendment No. 9 to Form N-4 Registration Statement (File No. 333-185573) filed on April 24, 2017.
Note 23.	Incorporated herein by reference to Post-Effective Amendment No. 10 to Form N-4 Registration Statement (File No. 333-185573) filed on April 30, 2018.
Note 24.	Incorporated herein by reference to the Initial Filing of Form N-4 Registration Statement (File No. 333-233837) filed on September 19, 2019.
Note 25.	Incorporated herein by reference to the Initial Filing of Form N-4 Registration Statement (File No. 333-236182) filed on January 31, 2020.
Note 26.	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
Fred Gingerich 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499	Controller and 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, Chief Legal and Administrative Officer, Executive Vice President, Secretary and Special 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
As of December 31, 2019, the following pages shows all corporations directly or indirectly controlled or under common control, with the Depositor, showing the state or other sovereign power under the laws of which each is organized and the percentage ownership of voting securities giving rise to the control relationship.
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 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
Aegon Community Investments 61, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	Investments
Aegon Community Investments 62, 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: Managing Member - Aegon Community Investments 55, LLC (.01%); Transamerica Premier Life Insurance Company (2.82%); non-affiliates of AEGON, Bank of Hope (14.26%); CMFG Life Insurance Company (9.72%); Citibank, N.A. (21.69%); ZB National Association (1.81%); Ally Bank (8.21%); U.S. Bancorp Community Development Corporation (22.10%); Lake City Bank (1.47%); The Guardian Life Insurance Company of America (10.45%); Minnesota Life Insurance Company (7.46%)	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	Members: Managing Member - Aegon Community Investments 58, LLC (0.01%); Transamerica Premier Life Insurance Company (12%); non-affiliates of AEGON, Allstate Insurance Company (12%); Allstate Life Insurance Company (12%); Ally Bank (17%); CMFG Life Insurance Company (8.05%); Santander Bank, N.A. (22.25%); U.S. Bancorp Community Development Corporation (19.47%); Zions Bancorporation, N.A. (6.35%)	Investments
Aegon LIHTC Fund 60, LLC	Delaware	Sole Member: Aegon Community Investments 60, LLC	Investments
Aegon LIHTC Fund 61, LLC	Delaware	Sole Member: Aegon Community Investments 61, LLC	Investments
Aegon LIHTC Fund 62, LLC	Delaware	Sole Member: Aegon Community Investments 62, LLC	Investments
AEGON Managed Enhanced Cash, LLC	Delaware	Members: Transamerica Life Insurance Company (62.2165%) ; Transamerica Premier Life Insurance Company (37.7835%)	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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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 Opportunity Zone Fund 2, L.P.	Delaware	Limited Partner: AEGON USA Realty Advisors, LLC (100%) General Partner: Aegon OZF Investments 2, LLC (0%)	Investments
Aegon OZF Investments 1, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Investments
Aegon OZF Investments 2, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Investments
Aegon Upstream 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
AEGON USA Realty Advisors of California, Inc.	Iowa	100% AEGON USA Realty Advisors, Inc.	Investments
Aegon Workforce Housing Boynton Place REIT, LLC	Delaware	Sole Member: Aegon Worforce Housing Separate Account 1, LLC	Multifamily private equity structure with third-party Investor
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
Aegon Workforce Housing Park at Via Rosa REIT, LLC	Delaware	Sole Member: Aegon Worforce Housing Separate Account 1, LLC	Multifamily private equity structure with third-party Investor
Aegon Workforce Housing Separate Account 1, LLC	Delaware	Undecided as of 11/1/19	Multifamily private equity structure with third-party Investor

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AHDF Manager I, 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
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 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 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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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
AWHSA Manager 1, LLC	Delaware	Sole Member: AEGON USA Realty Advisors, LLC	Multifamily private equity structure with third-party Investor
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 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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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
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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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
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: Transamerica Life Insurance Company (.01%); non-affiliate of AEGON, Aegon Community Investments III, (99.99%)	Investments
Garnet LIHTC Fund IV, LLC	Delaware	Members: Garnet Community Investments IV, LLC (99.99%); Transamerica Life Insurance Company (.01%)	Investments
Garnet LIHTC Fund V, LLC	Delaware	Members: Garnet Community Investments V, LLC (99.99%); Transamerica Life Insurance Company (.01%)	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund VI, LLC	Delaware	Members: Garnet Community Investments VI, LLC (99.99%); Transamerica Life Insurance Company (0.01%)	Investments
Garnet LIHTC Fund VII, LLC	Delaware	Members: Garnet Community Investments VII, LLC (99.99%); Transamerica Life Insurance Company (.01%)	Investments
Garnet LIHTC Fund VIII, LLC	Delaware	Members: Garnet Community Investments VIII, LLC (99.99%); Transamerica Life Insurance Company (0.01%)	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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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
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 a Managing Member (1%); non-AEGON affiliate, FNBC Leasing Corporation as Investor Member (99%)	Investments
Garnet LIHTC Fund XL, LLC	Delaware	Members: Garnet Community Investments XL, LLC (.01%); non-AEGON affiliate, Partner Reinsurance Company of the U.S. (99.99%)	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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund XLVII, LLC	Delaware	Members: Garnet Community Investments XLVII, LLC (1%) Managing Member; Transamerica Premier 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
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
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	Members: Non-Member Manager Aegon Community Investments 59, LLC (0%); non-affiliates of AEGON, Bank of America, National Association (99.99%); Dominium Taxable Fund II, LLC (0.01%)	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
Natural Resources Alternatives Portfolio 3, LLC	Delaware	Members: Transamerica Life Insurance Company (55%); Transamerica Premier Life Insurance Company (35%); Transamerica Financial Life Insurance Company (10%)	Investment vehicle

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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
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
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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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
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: Onno van Klinken, Mark W. Mullin, Jay Orlandi and Alexander R. Wynaendts	Delaware	100% AEGON International B.V.	Voting Trust

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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 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 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 (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 Corporation	Delaware	100% The AEGON Trust	Major interest in insurance and finance
Transamerica Corporation	Oregon	100% Transamerica Corporation	Holding company
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 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.

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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 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
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) Transamerica Capital, Inc. serves as the principal underwriter for:

Transamerica Capital, Inc. serves as the principal underwriter for the Retirement Builder Variable Annuity Account, Separate Account VA B, Separate Account VA Q, Separate Account VA FF, Separate Account VA HH, Separate Account VA-1, Separate Account VA-2L, Separate Account VA-5, Separate Account VA-6, Separate Account VA-7, Separate Account VA-8, Separate Account Fund B, Separate Account Fund C, Transamerica Corporate Separate Account Sixteen, Transamerica Separate Account R3, Separate Account VL, Separate Account VUL-1; Separate Account VUL-2, Separate Account VUL-3, Separate Account VUL-4, Separate Account VUL-5, Separate Account VUL-6, Separate Account VUL-A, and Variable Life Account A. These accounts are separate accounts of Transamerica Life Insurance Company.

Transamerica Capital, Inc. serves as principal underwriter for Separate Account VA BNY, Separate Account VA QNY, TFLIC Separate Account VNY, Separate Account VA-2LNY, TFLIC Separate Account C, Separate Account VA-5NLNY, Separate Account VA-6NY, TFLIC Series Annuity Account, TFLIC Series Life Account, TFLIC Pooled Account No. 44, Transamerica Variable Funds, ML of New York Variable Annuity Separate Account A, ML of New York Variable Annuity Separate Account B, ML of New York Variable Annuity Separate Account C, ML of New York Variable Annuity Separate Account D, ML of New York Variable Life Separate Account, and ML of New York Variable Life Separate Account II. These accounts are separate accounts of Transamerica Financial Life Insurance Company.

Transamerica Capital, Inc. also serves as principal underwriter for Separate Account VA BB, Separate Account VA CC, Separate Account VA U, Separate Account VA V, Separate Account VA AA, WRL Series Annuity Account, WRL Series Annuity Account B, WRL Series Life Account, WRL Series Life Account G, WRL Series Life Corporate Account and Separate Account VL E. This account is a separate account of Transamerica Premier Life Insurance Company.

Transamerica Capital, Inc. also serves as principal underwriter for Merrill Lynch Life Variable Annuity Separate Account, Merrill Lynch Life Variable Annuity Separate Account A, Merrill Lynch Life Variable Annuity Separate Account B, Merrill Lynch Life Variable Annuity Separate Account C, Merrill Lynch Life Variable Annuity Separate Account D, Merrill Lynch Variable Life Separate Account, and Merrill Lynch Life Variable Life Separate Account II. These accounts are separate accounts of Transamerica Life Insurance Company.

Transamerica Capital, Inc. also serves as principal underwriter for Transamerica Series Trust, Transamerica Funds, Transamerica Investors, Inc., and Transamerica Asset Allocation Variable Funds.

(b) Directors and Officers of Transamerica Capital, Inc.:

Name	Principal Business Address	Position and Offices with Underwriter
Brian Beitzel	(2)	Director, Treasurer and Chief Financial Officer
Joe Boan	(1)	Director, Chairman of the Board, Chief Executive Officer and Vice President
Doug Hellerman	(3)	Chief Compliance Officer and Vice President
Gregory E. Miller-Breetz	(1)	Secretary
Alison Ryan	(3)	Assistant Secretary

(1) 100 Light Street, Floor B1, Baltimore, MD 21202

(2) 4333 Edgewood Road N.E., Cedar Rapids, IA 52499-0001

(3) 1801 California Street, Suite 5200, Denver, CO 80202

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 30th day of April, 2020.

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
	*	Director and President	April 30, 2020
Blake S. Bostwick
	*	Controller and Vice President	April 30, 2020
Fred Gingerich
	*	Director and Chairman of	April 30, 2020
Mark W. Mullin		the Board
	*	Director, Chief Legal and	April 30, 2020
Jay Orlandi		Administrative Officer, Executive Vice President, Secretary and Special Counsel
	*	Director, Chief Tax Officer	April 30, 2020
David Schulz		and Senior Vice President
	*	Director, Chief Financial	April 30, 2020
C. Michiel van Katwijk		Officer, Executive Vice President and Treasurer
/s/ Brian Stallworth		Assistant Secretary	April 30, 2020
Brian Stallworth

*By: Brian Stallworth – Attorney-in-Fact pursuant to Powers of Attorney filed previously and/or herewith.