As filed with the Securities and Exchange Commission on July 1, 2014

Registration No. 333-            

811- 06466

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-4

REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933	x
Pre-Effective Amendment No.      Post-Effective Amendment No.      and
REGISTRATION STATEMENT
UNDER
THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 59

ML OF NEW YORK VARIABLE ANNUITY

SEPARATE ACCOUNT A

(Exact Name of Registrant)

TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY

(Name of Depositor)

(Former Depositor, Transamerica Advisors Life Insurance Company of New York)

440 Mamaroneck Avenue

Harrison, NY 10528

(Address of Depositor’s Principal Executive Offices)

Depositor’s Telephone Number: (800) 333-6524

Darin D. Smith, Esq.

Transamerica Financial Life Insurance Company

4333 Edgewood Road, N.E.

Cedar Rapids, IA 52499-4240

(Name and Address of Agent for Service)

Title of Securities Being Registered:

Flexible Premium Individual Deferred Variable Annuity Contracts

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.

MERRILL LYNCH RETIREMENT POWER

Issued by

TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY

ML of New York Variable Annuity Separate Account A

Supplement Dated July 1, 2014

to the

Prospectus dated May 1, 2004, as Supplemented

Home Office: 440 Mamaroneck Avenue

Harrison, New York 10528

Service Center: 4333 Edgewood Road NE

Cedar Rapids, Iowa 52499-0001

Phone: (800) 333-6524

Transamerica Financial Life Insurance Company (“TFLIC”) is amending the prospectus for Merrill Lynch Retirement Power contracts (the “Contracts”) for the purpose of providing information regarding the merger (the “Merger”) of the insurance company on your Contract, Transamerica Advisors Life Insurance Company of New York (“TALICNY”), with and into TFLIC.

TALICNY no longer sells the Contracts. Following the Merger, TFLIC will not sell the former TALICNY Contracts.

Effective on or about July 1, 2014, TALICNY merged with and into its affiliate TFLIC. Before the Merger, TALICNY was the insurance company on the Contracts. Upon consummation of the Merger, TALICNY’s corporate existence ceased by operation of law, and TFLIC assumed legal ownership of all of the assets of TALICNY, including the ML of New York Variable Annuity Separate Account A (the “separate account”) that funds the Contracts, and the assets of the separate account. As a result of the merger, TFLIC became responsible for all liabilities and obligations of TALICNY, including those created under the Contracts. The Contracts have thereby become flexible premium individual deferred variable annuity contracts funded by a separate account of TFLIC.

The Merger did not affect the terms of, or the rights and obligations under, your Contract, other than to change to the company that provides your Contract benefits from TALICNY to TFLIC. The Merger also did not result in any adverse tax consequences for any Contract owners, and Contract owners will not be charged additional fees or expenses as a result of the Merger. You will receive a Contract endorsement from TFLIC that reflects the change from TALICNY to TFLIC. Until we amend all forms we use that are related to the Contracts, we may still reflect TALICNY in correspondence and disclosure to you.

The following are the available investment options:

SUBACCOUNT	PORTFOLIO	ADVISOR/SUBADVISOR
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) – Series I Shares
Invesco V.I. Core Equity Fund	Invesco V.I. Core Equity Fund	Invesco Advisers, Inc.
Invesco V.I. International Growth Fund	Invesco V.I. International Growth Fund	Invesco Advisers, Inc.
Invesco V.I. Comstock Fund	Invesco V.I. Comstock Fund	Invesco Advisers, Inc.
AllianceBernstein Variable Products Series Fund, Inc. – Class A
AllianceBernstein Growth and Income Portfolio	AllianceBernstein Growth and Income Portfolio	AllianceBernstein L.P.
American Century Variable Portfolios, Inc. – Class I
VP Ultra® Fund	VP Ultra® Fund	American Century Investment Management, Inc.

SUBACCOUNT	PORTFOLIO	ADVISOR/SUBADVISOR
BlackRock Variable Series Funds, Inc. – Class I Shares
BlackRock Basic Value V.I. Fund	BlackRock Basic Value V.I. Fund	BlackRock Advisors, LLC
BlackRock Capital Appreciation V.I. Fund	BlackRock Capital Appreciation V.I. Fund	BlackRock Advisors, LLC
BlackRock International V.I. Fund	BlackRock International V.I. Fund	BlackRock Advisors, LLC
BlackRock Money Market V.I. Fund	BlackRock Money Market V.I. Fund	BlackRock Advisors, LLC
BlackRock S&P 500 Index V.I. Fund	BlackRock S&P 500 Index V.I. Fund	BlackRock Advisors, LLC
BlackRock Total Return V.I. Fund	BlackRock Total Return V.I. Fund	BlackRock Advisors, LLC
BlackRock U.S. Government Bond V.I. Fund	BlackRock U.S. Government Bond V.I. Fund	BlackRock Advisors, LLC
BlackRock Value Opportunities V.I. Fund	BlackRock Value Opportunities V.I. Fund	BlackRock Advisors, LLC
Columbia Funds Variable Series Trust II – Class 1
Columbia Variable Portfolio - Select Smaller-Cap Value Fund	Columbia Variable Portfolio - Select Smaller-Cap Value Fund	Columbia Management Investment Advisers, LLC
Davis Variable Account Fund, Inc.
Davis Value Portfolio	Davis Value Portfolio	Davis Selected Advisers, LP
Federated Insurance Series – Primary Shares
Federated Managed Tail Risk Fund II	Federated Managed Tail Risk Fund II	Federated Global Investment Management Corp.
Federated Kaufmann Fund II	Federated Kaufmann Fund II	Federated Equity Management Company of Pennsylvania
MFS® Variable Insurance Trust - Initial Class
MFS® Growth Series	MFS® Growth Series	MFS® Investment Management
PIMCO Variable Insurance Trust - Administrative Class Shares
Total Return Portfolio	Total Return Portfolio	Pacific Investment Management Company LLC
Transamerica Series Trust - Service Class
TA Barrow Hanley Divided Focused	Transamerica Barrow Hanley Divided Focused VP	Barrow, Hanley, Mewhinney, & Strauss, LLC
Additional Information:
Effective December 12, 2011, the following subaccounts are closed to new investments:
AllianceBernstein Variable Products Series Fund, Inc. – Class A
AllianceBernstein Large Cap Growth Portfolio	AllianceBernstein Large Cap Growth Portfolio	AllianceBernstein L.P.
Effective open of business April 30, 2012, the following subaccounts are closed to new investments:
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) – Series I Shares
Invesco V.I. American Franchise Fund	Invesco V.I. American Franchise Fund	Invesco Advisers, Inc.

The following hereby replaces the ML Life Insurance Company of New York section of the prospectus:

Transamerica Financial Life Insurance Company

Transamerica Financial Life Insurance Company was incorporated under the laws of the State of New York on October 3, 1947. It is engaged in the sale of life and health insurance and annuity contracts. The Company is a wholly-owned indirect subsidiary of Transamerica Corporation which conducts most of its operations through subsidiary companies engaged in the insurance business or in providing non-insurance financial services. All of the stock of Transamerica Corporation is indirectly owned by AEGON N.V. of The Netherlands, the securities of which are publicly traded. AEGON N.V., a holding company, conducts its business through subsidiary companies engaged primarily in the insurance business. The Company is located at 440 Mamaroneck Avenue, Harrison, New York 10528, and is licensed in all states and the District of Columbia.

All obligations arising under the Contracts, including the promise to make annuity payments, are general corporate obligations of the Company. Accordingly, no financial institution, brokerage firm or insurance agency is responsible for the financial obligations of the Company arising under the Contracts.

The following hereby replaces the Legal Proceedings section of the prospectus:

Legal Proceedings

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

We are currently being audited on behalf of multiple states’ treasury and controllers’ offices for compliance with laws and regulations concerning the identification, reporting and escheatment of unclaimed benefits or abandoned funds. The audits focus on insurance company processes and procedures for identifying unreported death claims, and their use of the Social Security Master Death File to identify deceased Contract and contract holders. In addition, we are the subject of multiple state Insurance Department inquiries and market conduct examinations with a similar focus on the handling of unreported claims and abandoned property. The audits and related examination activity have resulted in or may result in additional payments to beneficiaries, escheatment of funds deemed abandoned, administrative penalties and changes in our procedures for the identification of unreported claims and handling of escheatable property. We do not believe that any regulatory actions or agreements that have resulted from or will result from these examinations has had or will have a material adverse impact on the separate account, on TCI’s ability to perform under its principal underwriting agreement, or on our ability to meet our obligations under the Contract.

The following hereby replaces the Experts section of the prospectus:

Independent Registered Public Accounting Firm

The financial statements of the ML of New York Variable Annuity Account A, at December 31, 2013 and for the periods disclosed in the financial statements, and the statutory-basis financial statements and schedules of Transamerica Financial Life Insurance Company at December 31, 2013 and 2012, and for each of the three years in the period ended December 31, 2013, appearing herein, have been audited by Ernst & Young LLP, Suite 3000, 801 Grand Avenue, Des Moines, Iowa 50309, Independent Registered Public Accounting Firm, as set forth in their respective reports thereon appearing elsewhere herein, and are included in reliance upon their reports given on their authority as experts in accounting and auditing.

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY   Merrill Lynch Life Variable Annuity Separate Account A Supplement Dated January 17, 2014 to the Prospectuses For RETIREMENT POWER (Dated May 1, 2006) RETIREMENT OPTIMIZER (Dated May 1, 2004) TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY OF NEW YORK   ML of New York Variable Annuity Separate Account A Supplement Dated January 17, 2014 to the Prospectuses For RETIREMENT POWER (Dated May 1, 2004) RETIREMENT OPTIMIZER (Dated May 1, 2004)

Effective on or about February 5, 2014, the following investment option will be added:

SUBACCOUNT	PORTFOLIO	ADVISOR/SUBADVISOR
Transamerica Series Trust – Service Class
TA Barrow Hanley Dividend Focused	Transamerica Barrow Hanley Dividend Focused VP	Transamerica Asset Management, Inc.
Investment Objective: Seeks total return gained from the combination of dividend yield, growth of dividends and capital appreciation.

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY

OF NEW YORK

ML of New York Variable Annuity

Separate Account A

Supplement Dated May 1, 2013

to the

Prospectuses For

RETIREMENT POWER (Dated May 1, 2004)

RETIREMENT OPTIMIZER (Dated May 1, 2004)

The following hereby amends and supplements your prospectus:

Abandoned or Unclaimed Property

Every state has unclaimed property laws that generally provide for escheatment to the state of unclaimed property (including proceeds of annuity, life and other insurance policies) under various circumstances. In addition to the state unclaimed property laws, we may be required to escheat property pursuant to regulatory demand, finding, agreement or settlement. To help prevent such escheatment, it is important that you keep your contact and other information on file with us up to date, including the names, contact information and identifying information for owners, insureds, annuitants, beneficiaries and other payees. Such updates should be communicated in a form and manner satisfactory to us.

Legal Proceedings

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

We are currently being audited on behalf of multiple states’ treasury and controllers’ offices for compliance with laws and regulations concerning the identification, reporting and escheatment of unclaimed benefits or abandoned funds. The audits focus on insurance company processes and procedures for identifying unreported death claims, and their use of the Social Security Master Death File to identify deceased policy and contract holders. In addition, we are the subject of multiple state Insurance Department inquiries and market conduct examinations with a similar focus on the handling of unreported claims and abandoned property. The audits and related examination activity may result in additional payments to beneficiaries, escheatment of funds deemed abandoned, administrative penalties and changes in our procedures for the identification of unreported claims and handling of escheatable property. We do not believe that any regulatory actions or agreements that result from these examinations will have a material adverse impact on the separate account, on TCI’s ability to perform under its principal underwriting agreement, or on our ability to meet our obligations under the policy.

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY   Merrill Lynch Life Variable Annuity Separate Account A Supplement Dated December 12, 2011 to the Prospectuses For RETIREMENT POWER (Dated May 1, 2006) RETIREMENT OPTIMIZER (Dated May 1, 2004) TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY OF NEW YORK   ML of New York Variable Annuity Separate Account A Supplement Dated December 12, 2011 to the Prospectuses For RETIREMENT POWER (Dated May 1, 2004) RETIREMENT OPTIMIZER (Dated May 1, 2004)

This supplement updates the Prospectus for Merrill Lynch Retirement Power^® and the Merrill Lynch Retirement Optimizer^® Annuities issued by Transamerica Advisors Life Insurance Company and Transamerica Advisors Life Insurance Company of New York.

Effective on or about December 12, 2011, the AllianceBernstein Large Cap Growth Portfolio subaccount will be closed to new investment. “Closed to new investment” means no one can allocate additional amounts (either through policy transfer or additional premium) to the Subaccounts after December 12, 2011.

If you have any amount in the Subaccounts on December 12, 2011, you may do the following (subject to the terms and conditions contained in the prospectus):

• transfer amounts out of the Subaccounts into other subaccounts;

• withdraw amounts from the Subaccounts; and

• maintain your current investment in the Subaccounts.

Please note: If you have given us allocation instructions for premium payments or other purposes (for example, dollar cost averaging or rebalancing program) directing us to invest in the Subaccounts, you need to provide us with new instructions for amounts that would have otherwise gone into the Subaccounts.

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY

Merrill Lynch Life Variable Annuity

Separate Account A

Supplement Dated September 9, 2011

to the

Prospectuses For

RETIREMENT POWER (Dated May 1, 2006)

RETIREMENT OPTIMIZER (Dated May 1, 2004)

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY OF NEW YORK

ML of New York Variable Annuity

Separate Account A

Supplement Dated September 9, 2011

to the

Prospectuses For

RETIREMENT POWER (Dated May 1, 2004)

RETIREMENT OPTIMIZER (Dated May 1, 2004)

This supplement updates the Prospectus for Merrill Lynch Retirement Power^SM and Merrill Lynch Retirement Optimizer^SM issued by Transamerica Advisors Life Insurance Company and Transamerica Advisors Life Insurance Company of New York.

Effective on or about October 1, 2011 the following fund name changes will occur:

Current Fund Name	New Fund Name
BlackRock International Value V. I. Fund	BlackRock International V. I. Fund
BlackRock Government Income V. I. Fund	BlackRock U.S. Government Bond V. I. Fund

Because of this change, all references in the Prospectus to the funds listed will be changed.

TRANSAMERICA ADVISORS LIFE

INSURANCE COMPANY OF NEW YORK

(formerly known as

ML Life Insurance Company of New York)

ML of New York Variable Annuity

Separate Account A

Supplement Dated December 3, 2010

to the

Prospectus For

MERRILL LYNCH RETIREMENT POWER^®

(Dated May 1, 2004)

This supplement describes changes to the variable annuity contracts listed above (the “Contracts”) issued by Transamerica Advisors Life Insurance Company of New York (formerly ML Life Insurance Company of New York). Please retain this supplement with your Prospectus for future reference.

The following addresses and phone numbers replace all references in the Prospectus:

Notice to Contract Owners

Contact us at:

Transamerica Advisors Life Insurance Company of New York

Service Center

4333 Edgewood Road, NE

Cedar Rapids, Iowa 52499-0001

800-333-6524

The following is a list of the currently available funds under the contract:

AIM Variable Insurance Funds (Invesco Variable Insurance Funds) – Series I Shares Managed by Invesco Advisers, Inc. Invesco V.I. Core Equity Fund Invesco V.I. International Growth Fund Invesco Van Kampen V.I. Capital Growth Fund Invesco Van Kampen V.I. Comstock Fund   AllianceBernstein Variable Products Series Fund, Inc. – Class A Managed by AllianceBernstein L.P. AllianceBernstein VPS Growth and Income Portfolio AllianceBernstein VPS Large Cap Growth Portfolio   American Century Variable Portfolios, Inc. – Class I Managed by American Century Investment Management, Inc. VP Ultra^® Fund   BlackRock Variable Series Fund, Inc. – Class I Shares Managed by BlackRock Investments, LLC BlackRock Basic Value V.I. Fund BlackRock Capital Appreciation V.I. Fund BlackRock Government Income V.I. Fund BlackRock International Value V.I. Fund BlackRock Money Market V.I.Fund BlackRock S&P 500 Index V.I. Fund BlackRock Total Return V.I. Fund BlackRock Value Opportunities V.I. Fund Davis Variable Account Fund, Inc. Managed by Davis Selected Advisers, LP Davis Value Portfolio   Federated Insurance Series – Primary Class Shares Managed by Federated Equity Management Company of Pennsylvania Federated Capital Appreciation Fund II Federated Kaufmann Fund II   MFS^® Variable Insurance Trust – Initial Class Managed by MFS^® Investment Management MFS^® Growth Series   PIMCO Variable Insurance Trust – Administrative Class Shares Managed by Pacific Investment Management Company LLC Total Return Portfolio   Seligman Portfolios, Inc. – Class I Managed by J. & W. Seligman & Co. Incorporated Seligman Smaller-Cap Value Portfolio

The following hereby replaces the “FEE TABLE” section in the Prospectus:

FEE TABLE

The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Contract. The first table describes the fees and expenses that you will pay at the time that you buy the Contract, surrender the Contract, or transfer contract value between the subaccounts. State premium taxes may also be deducted.

Contract Owner Transaction Expenses

Sales Load Imposed on Premiums		None
Contingent Deferred Sales Charge (as a % of premium withdrawn)		None
Transfer Fee1	$	25

The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Fund fees and expenses.

Periodic Charges Other Than Fund Expenses

Annual Contract Fee2	$	40
Separate Account Annual Expenses (as a % of average Separate Account value) Current and Maximum Asset-Based Insurance Charge		1.59	%

The next table shows the minimum and maximum total operating expenses charged by the Funds that you may pay periodically during the time that you own the Contract. More detail concerning each Fund’s fees and expenses is contained in the prospectus for each Fund.

Range of Expenses for the Funds3	Minimum			Maximum
Total Annual Fund Operating Expenses (total of all expenses that are deducted from Fund assets, including management fees, 12b-1 fees, and other expenses)		0.43	%		2.34	%

Example

This Example is intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include Separate Account Annual Expenses, and Annual Fund Operating Expenses.

The Example assumes that you invest $10,000 in the Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the maximum and minimum fees and expenses of any of the Funds. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

If you surrender, annuitize, or remain invested in the Contract at the end of the applicable time period:

Assuming the maximum fees and expenses of any Fund, your costs would be:

1 year	3 years		5 years		10 years
$399	$	1,210	$	2,037	$	4,182

Assuming the minimum fees and expenses of any Fund, your costs would be:

1 year	3 years		5 years		10 years
$209	$	646	$	1,109	$	2,391

Because there is no contingent deferred sales charge, you would pay the same expenses whether you surrender your Contract at the end of the applicable time period or not, based on the same assumptions.

¹  There is no charge for the first 12 transfers in a contract year. We currently do not, but may in the future, charge a $25 fee on all subsequent transfers.

²  The contract fee will be assessed annually at the end of each contract year and upon a full withdrawal only if the greater of contract value, or premiums less withdrawals, is less than $25,000.

2

³  The Fund expenses used to prepare this table were provided to us by the Funds. We have not independently verified such information. The expenses shown are those incurred for the year ended December 31, 2009 or estimated for the current year. Current or future expenses may be greater or less than those shown. The investment adviser for certain Funds may contractually or voluntarily reimburse or waive Fund expenses. For more information about these arrangements, consult the prospectuses for the Funds.

The Example does not reflect the $40 contract fee because, based on average contract size and withdrawals, its effect on the examples shown would be negligible. Contractual waivers and reimbursements are reflected in the first year of the example, but not in subsequent years. See the “Charges and Discussions” section in the Prospectus and the Fund prospectuses for a further discussion of fees and charges.

The examples should not be considered a representation of past or future expenses or annual rates of return of any Fund. Actual expenses and annual rates of return may be more or less than those assumed for the purpose of the examples.

Condensed financial information containing the accumulation unit value history appears at the end of this Prospectus Supplement.

The following hereby replaces the “ML Life Insurance Company of New York” section in the Prospectus:

Transamerica Advisors Life Insurance Company of New York

(Formerly ML Life Insurance Company of New York)

We are a stock life insurance company organized under the laws of the State of New York on November 28, 1973 and engaged in the sale of life insurance and annuity products. On December 28, 2007, we became an indirect wholly owned subsidiary of AEGON USA, Inc. (“AEGON USA”). AEGON USA is indirectly owned by AEGON N.V. of the Netherlands, the securities of which are publicly traded. AEGON N.V. of the Netherlands conducts its business through subsidiary companies engaged primarily in the insurance business. We were formerly an indirect wholly owned subsidiary of Merrill Lynch & Co., Inc. (“Merrill Lynch”), a corporation whose common stock is traded on the New York Stock Exchange. Our financial statements can be found in the Statement of Additional Information. You should consider them only in the context of our ability to meet any Contract obligation.

The following hereby replaces the “Certain Payments We Receive With Regard to the Funds” section in the Prospectus:

Certain Payments We Receive With Regard to the Funds

We (and our affiliates) may directly or indirectly receive payments, which may be significant, from the Funds, their advisers, subadvisers, distributors, or affiliates thereof, in connection with certain administrative, marketing and other services we (and our affiliates) provide and expenses we incur. We (and/or our affiliates) generally receive two types of payments:

• Rule 12b-1 and Shareholder Service Fees. We receive 12b-1 or shareholder service fees from some Funds. These fees are deducted from the assets of the Funds and decrease the Funds’ investment returns. The percentages differ, and some Funds may pay more than others. Currently, these fees annually range from 0% to 0.25% of the average daily assets of the Funds attributable to the Contract and to certain other variable insurance contracts that we and our affiliates issue. We may continue to receive 12b-1 or shareholder service fees on subaccounts that are closed to new investments, depending on the terms of the agreements supporting those payments and on the services we or our affiliates provide.

• Administrative, Marketing and Support Service Fees (“Support Fees”). As noted above, an investment adviser, subadviser, and/or distributor (or affiliates thereof) of the Funds may make payments to us and/or our affiliates. These payments may be used for a variety of purposes, including payment of expenses that we (and our affiliates) incur in promoting, marketing, and administering the Contract and, in our role as an intermediary, the Funds. We (and our affiliates) may profit from these payments. These payments may be derived, in whole or in part, from the investment advisory fee deducted from Fund assets. Contract owners, through their indirect investment in the Funds, bear the costs of these investment advisory fees (see the Funds’ prospectuses for more information). The amount of the payments we receive is based on a percentage of the assets of the particular Funds attributable to the Contract and to certain other variable insurance contracts that we and our affiliates issue. These percentages differ, and some advisers (or affiliates) may pay more than others. These percentages currently range from 0% to 0.30% annually.

3

The combined percentages we receive with regard to each Fund currently range from 0% to 0.378% annually. Proceeds from these payments by the Funds, the advisers, the subadvisers and/or their affiliates may be used for any corporate purpose, including payment of expenses (1) that we and our affiliates incur in promoting, marketing, and administering the Contract, and (2) that we incur, in our role as intermediary, in promoting, marketing, and administering the Funds. 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 Contracts, see “Other
Information – Selling the Contract” in this prospectus.

The following hereby replaces the “Disruptive Trading” section in the Prospectus:

Disruptive Trading

Frequent or short-term transfers among subaccounts, such as those associated with “market timing” transactions, can adversely affect the Funds and the returns achieved by contract owners. In particular, such transfers may dilute the value of the Fund shares, interfere with the efficient management of the Funds’ investments, and increase brokerage and administrative costs of the Funds. Accordingly, frequent or short-term transfers by a contract owner among the subaccounts may adversely affect the long-term performance of the Funds, which may, in turn, adversely affect other contract owners and other persons who may have an interest in the Contract
(e.g., annuitants and beneficiaries). In order to try to protect our contract owners and the Funds from potentially disruptive or harmful trading activity, we have adopted certain policies and procedures (“Disruptive Trading Procedures”). We employ various means to try to detect such transfer activity, such as periodically examining the number of “round trip” transfers into and out of particular subaccounts made by contract owners within given periods of time and/or examining transfer activity identified by the Funds on a case-by-case basis.

Our policies and procedures may result in restrictions being applied to contract owners who are found to be engaged in disruptive trading activities. Contract owners will be provided one warning in writing prior to imposition of any restrictions on transfers. If a “warned” contract owner engages in any further disruptive trading activities within the six-month period following a warning letter, we will notify the contract owner in writing of the restrictions that will apply to future transfers under a Contract. Currently, our restrictions require such contract owners to submit all future transfer requests through regular U.S. mail (thereby refusing to accept transfer requests via overnight delivery service, telephone, Internet, facsimile, other electronic means, or through your Financial Advisor). We will also require that the contract owner’s signature on these transfer requests be notarized or signature guaranteed. If this restriction fails to limit further disruptive trading activities, we may additionally require a minimum time period between each transfer and refuse to execute future transfer requests that violate our Disruptive Trading Procedures. We currently do not, but may in the future, impose different restrictions, such as:

• not accepting a transfer request from a third party acting under authorization on behalf of more than one contract owner;

• limiting the dollar or percentage of contract value that may be transferred among the subaccounts at any one time; and

• imposing a redemption fee on certain transfers.

Because we have adopted our Disruptive Trading Procedures as a preventative measure to protect contract owners from the potential adverse effects of harmful trading activity, we will impose the restriction stated in the notification on that contract owner even if we cannot identify, in the particular circumstances, any harmful effect from that contract owner’s future transfers.

Despite our best efforts, we cannot guarantee that our Disruptive Trading Procedures will detect every potential contract owner engaged in disruptive trading activity, but we apply our Disruptive Trading Procedures consistently to all contract owners without special arrangement, waiver, or exception. Our ability to detect and deter such transfer activity may be limited by our operational systems and technological limitations. Furthermore, the identification of contract owners determined to be engaged in disruptive or harmful transfer activity involves judgments that are inherently subjective and consequently may result in certain trading activities being prohibited while others are allowed to proceed. In our sole discretion, we may revise our Disruptive Trading Procedures at any time without prior notice as necessary to better detect and deter frequent or short-term transfers that may adversely affect other contract owners or the Funds, to comply with state or federal regulatory requirements, or to impose additional or alternate restrictions on contract owners

4

engaged in disruptive trading activity. In addition, the other insurance companies and/or retirement plans that invest in the Funds may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we also cannot guarantee that the Funds (and thus contract owners) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the Funds.

The Funds available as investment options under the Contract may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares. The prospectuses for the Funds describe any such policies and procedures. The disruptive trading policies and procedures of a Fund may be different, and more or less restrictive, than our Disruptive Trading Procedures or the disruptive trading policies and procedures of other Funds. We may not have the contractual authority or the operational capacity to apply the disruptive trading policies and procedures of the respective Funds that would be affected by the transfers. However, we have entered into a written agreement, as required by SEC regulation, with each Fund or its principal underwriter that obligates us to provide to the Fund, promptly upon request, certain information about the trading activity of individual contract owners, and to execute instructions from the Fund to restrict or prohibit further premium payments or transfers by specific contract owners who violate the disruptive trading policies established by the Fund.

Accordingly, to the extent permitted by applicable law, we reserve the right to refuse to make a transfer at any time that we are unable to purchase or redeem shares of any of the Funds available through the Separate Account, including any refusal or restriction on purchases or redemptions of their shares as a result of a Fund’s own policies and procedures on disruptive trading activities.

Contract owners and other persons with interests in the Contracts also should be aware that the purchase and redemption orders received by the Funds generally are “omnibus” orders from intermediaries such as retirement plans or separate accounts funding variable insurance contracts. The omnibus orders reflect the aggregation and netting of multiple orders from individual retirement plan participants and/or individual owners of variable insurance contracts. The omnibus nature of these orders may limit the Funds’ ability to apply their respective disruptive trading policies and procedures. In addition, if a Fund believes that an omnibus order we submit may reflect one or more transfer requests from contract owners engaged in disruptive trading activity, the Fund may reject the entire omnibus order.

In the future, some Funds may begin imposing redemption fees on short-term trading (i.e., redemptions of mutual fund shares within a certain number of business days after purchase). We reserve the right to administer and collect any such redemption fees on behalf of the Funds.

Effective on or about December 31, 2010, Transamerica Asset Management, Inc. will replace Roszel Investment Advisors, LLC as the investment advisor to the Asset Allocation Program offered in your variable annuity. The following hereby replaces corresponding paragraphs in the “Asset Allocation Program” section of the prospectus.

Asset Allocation Program

The following is a general description of the Asset Allocation Program. A complete description is available in the brochure for the Program. This disclosure explains the material features of the Asset Allocation Program. The application and operation of the Asset Allocation Program are subject to the terms and conditions of the contract itself.

General. We make available to contract owners an Asset Allocation Program, for which our affiliate Transamerica Asset Management, Inc. (“TAM”) provides investment advice. TAM is an investment adviser registered under the Investment Advisers Act of 1940. As compensation for its services, we currently pay TAM 0.0375% of the value of the assets in the Merrill Lynch Investor Choice Annuity^® and the IRA Annuity^® product’s Asset Allocation Programs. We pay compensation for these services from our own company assets. We may alter the amount we pay, or cease paying, TAM for these services at any time in our sole discretion. If you participate in the Asset Allocation Program, TAM serves as investment adviser solely for the purposes of the development of the asset allocation models and periodic updates to the models. The Asset Allocation Program can be elected at issue or in writing or by proper telephone authorization at any time after issue. If you elect the Asset Allocation Program you must include all contract value in the Program. You do not pay a fee for participation in the Asset Allocation Program. We may perform certain administrative functions on behalf of TAM; however, we are not registered as an investment adviser and are not providing any investment advice in making the Program available. Furthermore, your Financial Advisor is not providing any investment advice related to the Asset Allocation Program.

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There is no assurance that investment returns will be better through participation in the Asset Allocation Program. Your Contract may still lose money and experience volatility.

Asset Allocation Models. Except as described below, a contract owner electing to participate in the Asset Allocation Program (a “Program participant”) will elect to have his or her contract value allocated according to one of the model portfolios developed by TAM. There are currently five asset allocation models to choose from:

• Conservative (formerly, Capital Preservation) – seeks capital preservation

• Moderately Conservative (formerly, Income) – seeks income

• Moderate (formerly, Income & Growth) – seeks income and growth

• Moderately Aggressive (formerly, Growth) – seeks growth

• Aggressive (formerly, Aggressive Growth) – seeks aggressive growth

When electing the Asset Allocation Program, Program participants must complete a standardized questionnaire. Your Financial Advisor can assist you in completing the questionnaire. Based on the results of the questionnaire, one of the asset allocation models is matched to the Program participant based on his or her financial situation, investment objectives, and risk tolerance. Each asset allocation model is intended for a specific type of investor, from aggressive to conservative, but the models are not constructed on an individualized basis for any one Program participant. Each model identifies one or more specific subaccounts and the percentage of premium or contract value allocated to each of those subaccount(s). The Program participant then selects from the available asset allocation models, and may select a model other than the model indicated by the questionnaire.

All of the asset allocation models may include subaccount(s) which invest in fixed income funds, the concentration and selection of which depends on the particular investment risk for that model. You may lose money by investing in an asset allocation model, the model may not perform as intended, an asset allocation model may perform better or worse than other models, and the models depend on the performance of the underlying funds of each model. The asset allocation models may be unsuccessful in maximizing returns and/or avoiding investment losses.

Changes to the Composition of Asset Allocation Models. On a quarterly basis, TAM reviews the asset allocation models and may adjust the composition of each model, which may include changes to the subaccount(s) in the model and/or the percentage allocations. Any adjustments become effective on the last business day of the calendar quarter.

If, as a result of such review, a change is made to an asset allocation model, TAM will notify Program participants in advance of the change, and each Program participant will have the opportunity to reject the change. A Program participant who chooses to reject a model change creates his or her own portfolio (a “self-directed portfolio”). TAM provides no investment advice related to the creation of a self-directed portfolio. Once a Program participant has rejected a change in a model, the Asset Allocation Program will be terminated as to that Program participant. Therefore, a Program participant who rejects a model change and thereby creates a self-directed portfolio will no longer receive written materials from TAM about the changes being made to the models. However, those Program participants can elect at any time to again participate in the Asset Allocation Program.

Contract owners who elect, either at issue or with respect to an existing Contract, to participate in the Asset Allocation Program within three weeks prior to the end of a calendar quarter will be provided with information regarding the composition of both the current asset allocation model, as well as any changes to the model which will become effective on the last day of the calendar quarter.

Initial Allocation to the Selected Asset Allocation Model. At the time you elect the Asset Allocation Program, you may choose to reallocate your contract value on the date of your election to the asset allocation model currently in effect, or you may choose to have your contract value reallocated on the last business day of the calendar quarter in which we receive the information necessary to process your request to the asset allocation model in effect for the calendar quarter following your election.

6

Quarterly Rebalancing. On the last business day of each calendar quarter, we automatically rebalance the contract value to maintain the subaccount(s) and percentages for each Program participant’s selected asset allocation model. This quarterly rebalancing takes account of:

• increases and decreases in contract value in each subaccount due to subaccount performance,

• increases and decreases in contract value in each subaccount due to withdrawals (particularly if taken from specific subaccounts designated by the contract owner), and premium payments, and

• any adjustments TAM has made to the selected model.

The first quarterly rebalancing will occur at the end of the first calendar quarter following the date the Program participant elects to participate in the Asset Allocation Program.

We will not automatically rebalance self-directed portfolios unless the contract owner elects the Rebalancing Program.

Allocation of Future Premiums. The asset allocation model that a Program participant selects will override any prior percentage allocations that the Program participant may have chosen and all future premiums will be allocated accordingly. In addition, in the event that a Program participant terminates his or her participation in the Program, unless we receive different instructions, any future premium payments will be allocated according to the percentage allocations of the previously selected model under the Program at the time the Program participant elected to terminate his or her participation.

Other Information. At any time, a Program participant can request to change his or her selected model or can elect to terminate his or her participation in the Asset Allocation Program and allocate his or her contract value among the subaccounts. If a Program participant allocates contract value among the subaccounts, his or her participation in the Asset Allocation Program will terminate and we will consider the Program participant to be in a self-directed portfolio.

TAM will remind Program participants at least annually to determine whether the Program participant’s financial situation or investment objectives have changed. In addition, when we notify Program participants quarterly of changes to the models, we also will instruct them to notify their Financial Advisor of any changes to their financial situation or investment objectives or contact us if they wish to change their selected model or create a self-directed portfolio.

Funds selected by TAM to be part of an asset allocation model may be advised or subadvised by TAM or one of its affiliates. To the extent that TAM includes such proprietary Funds in its models, TAM and/or its affiliates will receive additional compensation from the advisory fees of the Funds. (See “Certain Payments We Receive With Regard to the Funds” for information on compensation with regard to proprietary Funds.) TAM considers the compensation it receives, among a number of other factors, when deciding to include proprietary funds in the asset allocation models. You should be aware of this potential financial benefit if you elect to participate in the Asset Allocation Program.

For more information on TAM’s role as investment adviser for the Program, please see TAM’s brochure from their Form ADV, the SEC investment adviser registration form, which will be delivered to Program participants at the time they enroll in the Program and annually thereafter. Please contact us if you would like to receive a copy of this brochure. Program participants may also contact us at 1-800-333-6524 with questions about the Asset Allocation Program or the asset allocation models at any time.

Currently, we don’t charge for transfers under the Asset Allocation Program; they are in addition to the twelve annual transfers permitted without charge under the Contract. If you choose the DCA Program or the Rebalancing Program, you cannot also elect the Asset Allocation Program.

This Asset Allocation Program may be terminated or altered at any time by us with regard to existing Contracts or future Contracts, or both, for some or all classes of Contracts.

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The following sections are added to the “Federal Income Taxes” section of the Prospectus:

Medicare Tax

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

Estate, Gift and Generation-Skipping Transfer Taxes in 2010

In 2001, Congress enacted the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”), which eliminated the estate tax (but not the gift tax) and replaced it with a carryover basis income tax regime for estates of decedents dying in 2010, and also eliminated the generation-skipping transfer tax for transfers made in 2010. Beginning in 2011, however, EGTRRA allowed the estate, gift and generation-skipping transfer taxes to return to their pre-EGTRRA form. Moreover, it is possible that Congress may enact legislation reinstating the estate and generation-skipping transfer taxes for 2010, possibly on a retroactive basis. The uncertainty as to future estate, gift and generation-skipping transfer taxes underscores the importance of seeking guidance from a qualified advisor to help ensure that your estate plan adequately addresses your needs and that of your beneficiaries under all possible scenarios.

The following sections are added to the “Other Information” section of the Prospectus:

Financial Condition of the Company

We pay the benefits under your Contract from our general account assets and/or from your account value held in the Separate Account. It is important that you understand that payments of the benefits is not guaranteed and depends upon certain factors discussed below.

Assets in the Separate Account. You assume all of the investment risk for account value allocated to the subaccounts. Your account value in the subaccounts is part 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. See “The Separate Account.”

Assets in the General Account. Any guarantees under the Contract that exceed your account value, such as those associated with any death benefit riders or living benefit riders, are paid from our general account (not the Separate Account). Therefore, any amounts that we may be obligated to pay under the Contract in excess of Account 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 Contracts supported by it. We issue other types of insurance policies and financial products as well and we pay our obligations under these products from our assets in the general account.

Our Financial Condition. As an insurance company, we are required by state insurance regulation to hold a specified amount of reserves in order to meet all the contractual obligations of our general account. In order to meet our claims-paying obligations, we monitor our reserves so that we hold sufficient amounts to cover actual or expected contract and claims payments. However, it is important to note that there is no guarantee that we will always be able to meet our claims paying obligations, and that there are risks to purchasing any insurance product.

State insurance regulators also require insurance companies to maintain a minimum amount of capital, which acts as a cushion in the event that the insurer suffers a financial impairment, based on the inherent risks in the insurer’s operations. These risks include those associated with losses that we may incur as the result of defaults on the payment of interest or principal on our general account assets, which include bonds, mortgages, general real estate investments, and stocks, as well as the loss in market value of these investments.

How to Obtain More Information. We encourage both existing and prospective contract owners to read and understand our financial statements. We prepare our financial statements on both a statutory basis and according to

8

Generally Accepted Accounting Principles (GAAP). Our audited GAAP financial statements, as well as the financial statements of the Separate Account, are located in the Statement of Additional Information. For a free copy of the Statement of Additional Information, simply call or write us at the phone number or address of our Service Center referenced earlier in this Prospectus. In addition, the Statement of Additional Information is available on the SEC’s website at http://www.sec.gov. For additional information about the Company, please see our Annual Report on Form 10-K, which is available on our website at www.aegonins.com.

The following hereby replaces the “Selling the Contracts” section of the Prospectus:

Selling the Contract

We have entered into a distribution agreement with our affiliate, Transamerica Capital, Inc. (“Distributor”), for the distribution and sale of the Contracts. Distributor offers the Contracts through registered representatives of MLPF&S (“Financial Advisors”). The Financial Advisors are registered with FINRA, licensed as insurance agents in the states in which they do business, and appointed through various Merrill Lynch Life Agencies as our insurance agents.

We pay commissions to the Merrill Lynch Life Agencies for sales of the Contracts by the Financial Advisors. Pursuant to a sales agreement, the Merrill Lynch Life Agencies pay Distributor a portion of the commissions they receive from us for the sales of the Contracts, and the Distributor pays the Financial Advisors a portion of the commissions it receives from the Merrill Lynch Life Agencies for the sales of the Contracts. Distributor also compensates Retirement Solution Specialists (formerly known as District Annuity Specialist), who provide training and marketing support to Financial Advisors in a specific geographic region and whose compensation is based on sales in that region. Sales of the Contracts will help Retirement Solution Specialists meet their sales goals and affects their total compensation.

The selling firms that have selling agreements with us and TCI are paid commissions for the promotion and sale of the contracts according to one or more schedules. The amount and timing of commissions may vary depending on the selling agreement, but the maximum commission is 1.85% of premiums (additional amounts may be paid as overrides to wholesalers). In addition, on the annuity date, the maximum commission payable to the Financial Advisors is 0.51% of contract value not subject to a sales charge.

Financial Advisors and their branch managers are also eligible for various cash benefits, such as bonuses, insurance benefits and financing arrangements, and non-cash compensation items. Non-cash items include conferences, seminars, and trips (including travel, lodging, and meals in connection therewith), entertainment, merchandise, and other similar items. In addition, Financial Advisors who meet certain productivity, persistency, and length of service standards and/or their branch managers may be eligible for additional compensation from Distributor. Retirement Solution Specialists who meet certain productivity standards may also be eligible for additional compensation from the Merrill Lynch Life Agencies. Sales of the Contracts may help Financial Advisors, their branch managers, and Retirement Solution Specialists qualify for such benefits. Distributor’s Financial Advisors and their branch managers may receive other payments from Distributor for services that do not directly involve the sale of the Contracts, including payments made for the recruitment and training of personnel, production of promotional literature, and similar services.

The Distributor does not currently sell the Contracts through other broker-dealers (“selling firms”). However, the Distributor may enter into selling agreements with selling firms in the future. Selling firms may be compensated on a different basis than the various Merrill Lynch Life Agencies and the Financial Advisors; however, commissions paid to selling firms and their sales representatives will not exceed those described above.

Commissions and other incentives or payments described above are not charged directly to Contract owners or the Accounts. We intend to recoup commissions and other sales expenses through fees and charges deducted under the Contract.

The following hereby replaces the “Experts” section of the Prospectus:

Experts

The financial statements of ML Life Insurance Company of New York as of December 31, 2009, and for each of the three years in the period ended December 31, 2009, have been audited by Ernst & Young LLP, an independent

9

registered public accounting firm. The financial statements of the ML of New York Variable Annuity Separate Account A as of December 31, 2009, have been audited by Ernst & Young LLP, an independent registered public accounting firm. Both financial statements are incorporated by reference in this Prospectus and included in the Statement of Additional Information and have been so included and incorporated by reference in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing. The principal business address of Ernst & Young LLP, is 801Grand Avenue, Suite 3000, Des Moines, Iowa 50309.

The following hereby replaces the Legal Matters” section of the Prospectus:

Legal Matters

Sutherland Asbill & Brennan LLP of Washington D.C. has provided legal advice to us relating to certain matters under the federal securities laws.

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The following replaces, the ACCUMULATION UNIT VALUES section of the prospectus:

ACCUMULATION UNIT VALUES

(Condensed Financial Information)

Subaccount	Year	Beginning AUV		Ending AUV		# Units
Invesco V.I. Core Equity Fund – Series I Shares Subaccount Inception Date May 1, 2006	2009 2008 2007 2006	$ $ $ $	8.10 11.78 11.07 9.64	$ $ $ $	10.23 8.10 11.78 11.07		148,425.6 418,106.0 19,798.2 86,561.3
Invesco V.I. International Growth Fund – Series I Shares Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	7.13 12.15 10.76 8.53 7.35 6.02 4.74 5.71 7.59	$ $ $ $ $ $ $ $ $	9.49 7.13 12.15 10.76 8.53 7.35 6.02 4.74 5.71		31,158.1 37,298.1 36,734.7 101,723.1 213,673.9 73,083.0 94,804.2 105,644.1 641,243.2
Invesco Van Kampen V.I. Capital Growth Fund – Series I Shares Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	2.84 5.67 4.92 4.86 4.58 4.35 3.47 5.22 7.74	$ $ $ $ $ $ $ $ $	4.65 2.84 5.67 4.92 4.86 4.58 4.35 3.47 5.22		18,557.7 39,872.0 30,209.7 54,594.1 71,923.3 85,985.9 99,651.8 135,559.6 120,539.7
Invesco Van Kampen V.I. Comstock Fund – Series I Shares Subaccount Inception Date May 1, 2004	2009 2008 2007 2006 2005 2004	$ $ $ $ $ $	8.09 12.78 13.26 11.58 11.27 9.73	$ $ $ $ $ $	10.26 8.09 12.78 13.26 11.58 11.27		40,607.8 24,200.8 42,051.8 144,799.4 172,284.0 141,248.2
AllianceBernstein VPS Growth and Income Portfolio – Class A Shares Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	8.43 14.42 13.94 12.07 11.70 10.66 8.18 10.66 10.79	$ $ $ $ $ $ $ $ $	10.02 8.43 14.42 13.94 12.07 11.70 10.66 8.18 10.66		109,387.3 87,987.7 165,085.7 114,183.1 399,995.3 230,584.0 272,228.9 382,580.6 460,234.8
AllianceBernstein VPS Large Cap Growth Portfolio – Class A Shares Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	4.13 6.95 6.20 6.33 5.58 5.22 4.29 6.29 7.71	$ $ $ $ $ $ $ $ $	5.59 4.13 6.95 6.20 6.33 5.58 5.22 4.29 6.29		60,474.1 101,186.7 244,331.4 294,145.4 361,298.0 218,854.6 256,745.6 280,253.0 245,940.6
American Century VP Ultra® Fund – Class I Shares Subaccount Inception Date May 1, 2004	2009 2008 2007 2006 2005 2004	$ $ $ $ $ $	6.99 12.14 10.20 10.71 10.65 9.78	$ $ $ $ $ $	9.26 6.99 12.14 10.20 10.71 10.65		6,877.6 72,611.1 93,057.7 21,748.2 57,687.5 5,760.3
BlackRock Basic Value V.I. Fund – Class I Shares Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	9.86 15.84 15.81 13.18 13.01 11.90 9.08 11.21 10.93	$ $ $ $ $ $ $ $ $	12.72 9.86 15.84 15.81 13.18 13.01 11.90 9.08 11.21		295,151.5 188,941.7 181,262.8 222,687.5 294,203.6 566,011.8 476,411.1 476,578.4 321,734.4

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Subaccount	Year	Beginning AUV		Ending AUV		# Units
BlackRock Capital Appreciation V.I. Fund – Class I Shares Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	5.36 8.90 7.59 7.38 6.98 6.64 5.27 7.38 9.16	$ $ $ $ $ $ $ $ $	7.17 5.36 8.90 7.59 7.38 6.98 6.64 5.27 7.38		129,144.8 198,966.6 355,991.6 315,807.6 303,809.5 369,005.8 439,864.4 1,558,262.1 880,283.2
BlackRock Government Income V.I. Fund – Class I Shares Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	14.24 13.42 13.11 12.81 12.61 12.30 12.25 11.33 10.76	$ $ $ $ $ $ $ $ $	13.77 14.24 13.42 13.11 12.81 12.61 12.30 12.25 11.33		274,715.5 142,861.9 140,737.8 644,680.6 228,302.6 289,707.2 344,194.7 1,151,115.1 790,608.4
BlackRock International Value V.I. Fund – Class I Shares Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	11.17 19.75 18.18 14.44 13.14 10.90 7.78 8.94 10.43	$ $ $ $ $ $ $ $ $	14.29 11.17 19.75 18.18 14.44 13.14 10.90 7.78 8.94		67,439.8 84,123.1 81,103.1 117,207.5 97,775.6 133,413.4 184,703.9 109,787.3 207,922.7
BlackRock Money Market V.I. Fund – Class I Shares Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	11.26 11.16 10.81 10.51 10.40 10.47 10.56 10.57 10.34	$ $ $ $ $ $ $ $ $	11.10 11.26 11.16 10.81 10.51 10.40 10.47 10.56 10.57		150,337.1 183,401.9 333,484.0 194,374.5 250,262.8 208,018.0 525,927.5 904,823.2 1,426,508.4
BlackRock S&P 500 Index V.I. Fund – Class I Shares Subaccount Inception Date January 2, 2002	2009 2008 2007 2006 2005 2004 2003 2002	$ $ $ $ $ $ $ $	5.91 9.56 9.21 8.10 7.88 7.25 5.75 7.53	$ $ $ $ $ $ $ $	7.34 5.91 9.56 9.21 8.10 7.88 7.25 5.75		99,467.9 159,328.7 278,797.2 472,382.8 265,381.7 336,551.7 923,548.6 316,770.0
BlackRock Total Return V.I. Fund – Class I Shares Subaccount Inception Date July 1, 2002	2009 2008 2007 2006 2005 2004 2003 2002	$ $ $ $ $ $ $ $	10.14 11.73 11.49 11.19 11.14 10.83 10.50 10.00	$ $ $ $ $ $ $ $	11.76 10.14 11.73 11.49 11.19 11.14 10.83 10.50		25,779.9 60,338.4 76,363.7 247,177.6 395,535.8 512,507.9 533,495.3 11,962.7
BlackRock Value Opportunities V.I. Fund – Class I Shares Subaccount Inception Date July 1, 2002	2009 2008 2007 2006 2005 2004 2003 2002	$ $ $ $ $ $ $ $	9.47 16.05 16.46 14.82 13.64 12.06 8.57 10.00	$ $ $ $ $ $ $ $	11.97 9.47 16.05 16.46 14.82 13.64 12.06 8.57		4,986.2 11,535.2 13,577.0 16,115.7 21,750.2 17,546.9 8,729.5 23,513.6

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Subaccount	Year	Beginning AUV		Ending AUV		# Units
Davis Value Portfolio Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	7.34 12.50 12.14 10.73 9.96 9.01 7.05 8.56 9.70	$ $ $ $ $ $ $ $ $	9.48 7.34 12.50 12.14 10.73 9.96 9.01 7.05 8.56		154,263.5 175,645.7 212,110.2 424,788.6 519,454.5 1,236,995.5 641,584.2 390,854.2 318,249.7
Federated Capital Appreciation Fund II – Primary Class Shares Subaccount Inception Date May 1, 2004	2009 2008 2007 2006 2005 2004	$ $ $ $ $ $	9.18 13.21 12.21 10.68 10.64 10.07	$ $ $ $ $ $	10.25 9.18 13.21 12.21 10.68 10.64		27,020.0 38,289.9 234,966.4 0.0 0.0 0.0
Federated Kauffman Fund II – Primary Class Shares Subaccount Inception Date May 1, 2004	2009 2008 2007 2006 2005 2004	$ $ $ $ $ $	9.39 16.40 13.77 12.18 11.12 9.86	$ $ $ $ $ $	11.97 9.39 16.40 13.77 12.18 11.12		160,454.6 96,597.9 13,448.1 13,039.6 14,939.4 1,016.3
MFS® Growth Series – Initial Class Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	3.92 6.36 5.33 5.02 4.67 4.20 3.28 5.03 7.68	$ $ $ $ $ $ $ $ $	5.31 3.92 6.36 5.33 5.02 4.67 4.20 3.28 5.03		139,487.2 172,432.3 122,080.2 151,708.2 159,054.1 189,371.5 230,303.0 235,285.6 212,584.0
PIMCO Total Return Portfolio – Administrative Class Shares Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	14.91 14.45 13.50 13.21 13.10 12.69 12.27 11.43 10.72	$ $ $ $ $ $ $ $ $	16.74 14.91 14.45 13.50 13.21 13.10 12.69 12.27 11.43		350,755.0 520,671.5 666,562.4 428,760.1 949,523.1 1,211,261.1 1,256,054.4 735,100.5 929,148.1
Seligman Smaller-Cap Value Portfolio – Class I Subaccount Inception Date January 1, 2001	2009 2008 2007 2006 2005 2004 2003 2002 2001	$ $ $ $ $ $ $ $ $	14.73 24.73 24.15 20.24 21.41 18.14 12.29 14.75 12.14	$ $ $ $ $ $ $ $ $	19.64 14.73 24.75 24.15 20.24 21.41 18.14 12.29 14.75		18,794.5 23,627.0 29,411.1 41,872.1 55,267.4 80,483.2 94,968.0 163,270.3 379,843.3

*    *     *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 333-6524, or write the Service Center at 4333 Edgewood Road NE, Cedar Rapids, Iowa 52499.

13

ML LIFE INSURANCE COMPANY OF NEW YORK

ML of New York Variable Annuity Separate Account A Supplement Dated July 30, 2010 to the Prospectuses For   MERRILL LYNCH INVESTOR CHOICE ANNUITY (Investor Series) (Dated May 1, 2010) RETIREMENT POWER (Dated May 1, 2004) RETIREMENT OPTIMIZER (Dated May 1, 2004) RETIREMENT PLUS (Dated May 1, 2009)   ML of New York Variable Annuity Separate Account B Supplement Dated July 30, 2010 to the Prospectus For   RETIREMENT PLUS (Dated May 1, 2009) ML of New York Variable Annuity Separate Account C Supplement Dated July30, 2010 to the Prospectus For   CONSULTS ANNUITY (Dated May 1, 2008)   ML of New York Variable Annuity Separate Account D Supplement Dated July 27, 2010 To the Prospectus For   MERRILL LYNCH INVESTOR CHOICE ANNUITY (IRA Series) (Dated May 1, 2010) MERRILL LYNCH IRA ANNUITY (Dated May 1, 2006)   ML of New York Variable Annuity Separate Account Supplement Dated July 30, 2010 to the Prospectus For   PORTFOLIO PLUS (Dated May 1, 1993)

This supplement describes certain changes to the variable annuity contracts listed above (the “Contracts”) issued by ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

Effective July 1, 2010, the ML Life Insurance Company of New York changed its name to Transamerica Advisors Life Insurance Company of New York.

ML LIFE INSURANCE COMPANY OF NEW YORK

ML of New York Variable Annuity

Separate Account A

Supplement Dated June 14, 2010

to the

Prospectuses For

RETIREMENT POWER (Dated May 1, 2004)

RETIREMENT OPTIMIZER (Dated May 1, 2004)

RETIREMENT PLUS (Dated May 1, 2008)

ML of New York Variable Annuity

Separate Account B

Supplement Dated June 14, 2010

to the

Prospectus For

RETIREMENT PLUS (Dated May 1, 2008)

ML of New York Variable Annuity

Separate Account C

Supplement Dated June 14, 2010

to the

Prospectus For

CONSULTS ANNUITY (Dated May 1, 2008)

ML of New York Variable Annuity

Separate Account D

Supplement Dated June 14, 2010

to the

Prospectus For

MERRILL LYNCH IRA ANNUITY

(Dated May 1, 2005)

ML of New York Variable Annuity

Separate Account

Supplement Dated June 14, 2010

to the

Prospectus For

PORTFOLIO PLUS (Dated May 1, 1993)

This supplement describes certain changes to the variable annuity contracts listed above (the “Contracts”) issued by ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

The following changes are effective:

Signature Guarantee

As protection against fraud, we require that the following transaction requests include a Medallion signature guarantee:

• All written requests for surrenders (i.e. partial surrenders and full surrenders) over $250,000;

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

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

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

• All written requests for surrenders (i.e. partial surrenders and full surrenders) when the Company does not have an original signature on file.

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

• National and state banks;

• Savings banks and savings and loan associations;

• Securities brokers and dealers; and

• Credit unions.

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

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

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 333-6524, or write the Service Center at 4333 Edgewood Road NE Cedar Rapids, Iowa 52499-0001.

2

MERRILL LYNCH LIFE INSURANCE COMPANY	ML LIFE INSURANCE COMPANY OF NEW YORK
Merrill Lynch Life Variable Annuity	ML of New York Variable Annuity
Separate Account A	Separate Account A
Supplement Dated June 1, 2010	Supplement Dated June 1, 2010
to the	to the
Prospectuses For	Prospectuses For
RETIREMENT POWER (Dated May 1, 2006)	RETIREMENT POWER (Dated May 1, 2004)
RETIREMENT OPTIMIZER (Dated May 1, 2004)	RETIREMENT OPTIMIZER (Dated May 1, 2004)

This supplement describes a change to the variable annuity contracts listed above (the “Contracts”) issued by Merrill Lynch Life Insurance Company and ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

On or about June 1, 2010 (“merger date”), the Van Kampen Life Investment Trust Capital Growth Portfolio and the Van Kampen Life Investment Trust Comstock Portfolio of the Van Kampen Life Investment Trust will merge into empty “shell funds” of the AIM Variable Insurance Funds (Invesco Variable Insurance Funds) trust and be renamed Invesco Van Kampen V.I. Capital Growth Fund and Invesco Van Kampen V.I. Comstock Fund, respectfully. This merger will not involve any change in the funds’ management, investment objective or policies because the surviving funds are empty “shell funds”.

Because of this merger, the Van Kampen Life Investment Trust Capital Growth Portfolio and Van Kampen Life Investment Trust Comstock Portfolio subaccounts (the “Subaccounts”) will be renamed Invesco Van Kampen V.I. Capital Growth Fund and Invesco Van Kampen V.I. Comstock Fund, respectfully.

No action is necessary on your part if you want to remain invested in the Subaccounts. If you do not wish to remain allocated to the Subaccounts, you may generally transfer your policy value allocated in these Subaccounts to any other subaccount listed in your Prospectus. However, please note that there may be negative consequences and you may lose certain benefits if your transfer or updated investment allocation violates any allocation guidelines and restrictions applicable to allocation instructions for premium payments or other purposes (for example, dollar cost averaging and asset rebalancing).

If you reallocate your policy value to another subaccount from the Invesco Van Kampen V.I. Capital Growth Fund or the Invesco Van Kampen V.I. Comstock Fund, you will not be charged for the transfer from those Subaccounts to another available subaccount if made within 30 days of the merger date. This reallocation also will not count as a transfer for purposes of any free transfers that you receive each contract year.

ML LIFE INSURANCE COMPANY OF NEW YORK

ML of New York Variable Annuity

Separate Account A

Supplement Dated November 6, 2009

to the

Prospectuses For

RETIREMENT POWER (Dated May 1, 2004)

RETIREMENT OPTIMIZER (Dated May 1, 2004)

RETIREMENT PLUS (Dated May 1, 2008)

ML of New York Variable Annuity

Separate Account B

Supplement Dated November 6, 2009

to the

Prospectus For

RETIREMENT PLUS (Dated May 1, 2008)

ML of New York Variable Annuity

Separate Account C

Supplement Dated November 6, 2009

to the

Prospectus For

CONSULTS ANNUITY (Dated May 1, 2008)

ML of New York Variable Annuity

Separate Account D

Supplement Dated November 6, 2009

to the

Prospectus For

MERRILL LYNCH IRA ANNUITY

(Dated May 1, 2005)

ML of New York Variable Annuity

Separate Account

Supplement Dated November 6, 2009

to the

Prospectus For

PORTFOLIO PLUS (Dated May 1, 1993)

This supplement describes certain changes to the variable annuity contracts listed above (the “Contracts”) issued by ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

The following changes will be effective the date of this supplement:

• You are not permitted to send full or partial withdrawals directly to your personal MLPF&S brokerage account.

• As a protection against fraud, we require that the following transaction requests include a Medallion signature guarantee:

• All requests for partial withdrawals or full surrenders that are submitted in writing of $50,000 and over;

• Any partial withdrawal or full surrender request that are to be paid by check and are submitted in writing, if such request is made on or within 15 days of a change to the address of record for a contract owner’s account; and

• Any partial withdrawal or full surrender request when we are directed to send proceeds to a different address from the address of record for that contract owner’s account. PLEASE NOTE: This requirement does not apply to withdrawal request made in connection with exchanges of one annuity contract for another with the same owner in a “tax-free exchange” under Section 1035 of the Internal Revenue Code or a Qualified Direct Rollover to another insurance company.

You can obtain a Medallion signature guarantee from more than 7,000 financial institutions across the United States and Canada that participate in the Medallion signature guarantee program. This includes many national and state banks, savings banks and savings and loan associations, securities brokers and dealers, and credit unions.

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

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 333-6524 (for Contracts issued by ML Life Insurance Company of New York), or write the Service Center at 4333 Edgewood Road NE Cedar Rapids, Iowa 52499-0001.

2

MERRILL LYNCH LIFE INSURANCE COMPANY   Merrill Lynch Life Variable Annuity
Separate Account A
Supplement Dated August 19, 2009
to the
Prospectuses For
RETIREMENT POWER (Dated May 1, 2006)
RETIREMENT OPTIMIZER (Dated May 1,2004) ML LIFE INSURANCE COMPANY OF NEW YORK   ML of New York Variable Annuity Separate Account A
Supplement Dated August 19, 2009
to the
Prospectuses For
RETIREMENT POWER (Dated May 1, 2004)
RETIREMENT OPTIMIZER (Dated May 1, 2004)

This supplement describes a change to the variable annuity contracts listed above (the “Contracts”) issued by Merrill Lynch Life Insurance Company and ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

Liquidation of Portfolios

We have been advised that the MLIG Variable Insurance Trust consisting of the following portfolios:

Roszel/Allianz CCM Capital Appreciation Portfolio Roszel/Delaware Trend Portfolio Roszel/Lord Abbett Affiliated Portfolio Roszel/Lord Abbett Mid Cap Value Portfolio Roszel/Allianz NFJ Small Cap Value Portfolio Roszel/JPMorgan Small Cap Growth Portfolio Roszel/Lord Abbett Bond Debenture Portfolio Roszel/Seligman Mid Cap Growth Portfolio

(the “Portfolios”) will liquidate on or about October 23, 2009 (the “Liquidation Date”). Because of the liquidation, the subaccounts investing in the Portfolios (the “Subaccounts”) will be closed effective as of the close of business on the Liquidation Date.

If you have policy value allocated to the Subaccounts on the Liquidation Date, shares of the Portfolios held for you in the Subaccounts will be exchanged for shares of the BlackRock Money Market V.I. Fund portfolio (the “Money Market Portfolio”), of equal value on the Liquidation Date, and held in the BlackRock Money Market V.I. Fund (the “Money Market Subaccount”).

If you have given us allocation instructions for premium payments or other purposes (for example, Dollar Cost Averaging or Rebalancing) directing us to invest in the Subaccounts, you need to provide us with new instructions for amounts that would have otherwise gone into those Subaccounts. If you are enrolled in the Dollar Cost Averaging Program or Rebalancing Program and we do not receive updated allocation instructions from you as of the Liquidation Date, then the liquidation Subaccounts used in the programs will be replaced by the Money Market Subaccount on the Liquidation Date. If your premium allocation instructions include one or more liquidating Subaccount, new allocation instructions must accompany the first premium payment after the Liquidation Date. If we do not receive new allocation instructions, the premium payment will be rejected.

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 535-5549 (for Contracts issued by Merrill Lynch Life Insurance Company) or (800) 333-6524 (for Contracts issued by ML Life Insurance Company of New York), or write the Service Center at 4333 Edgewood Road NE, Cedar Rapids, Iowa 52499.

ML LIFE INSURANCE COMPANY OF NEW YORK

ML of New York Variable Annuity Separate Account A Supplement Dated July 24, 2008
to the Prospectuses For
RETIREMENT POWER (Dated May 1, 2004)
RETIREMENT OPTIMIZER (Dated May 1, 2004)   ML of New York Variable Annuity Separate Account D
Supplement Dated July 24, 2008
to the Prospectus For
MERRILL LYNCH IRA ANNUITY
(Dated May 1, 2005)   ML of New York Variable Annuity Separate Account Supplement Dated July 24, 2008
to the Prospectus For
PORTFOLIO PLUS (Dated May 1, 1993) ML of New York Variable Life Separate Account
Supplement Dated July 24, 2008
to the Prospectuses For
PRIME PLAN I (Dated April 30, 1991)
PRIME PLAN II (Dated April 30, 1991)
PRIME PLAN III (Dated April 30, 1991)
PRIME PLAN IV (Dated April 30, 1991)
PRIME PLAN V (Dated January 2, 1991)
PRIME PLAN VI (Dated April 30, 1991)
PRIME PLAN 7 (Dated April 30, 1991)
PRIME PLAN INVESTOR (Dated April 30, 1991)
DIRECTED LIFE (Dated April 30, 1991)
DIRECTED LIFE 2 (Dated April 30, 1991)   ML of New York Variable Life Separate Account II Supplement Dated July 24, 2008
to the Prospectuses For
INVESTOR LIFE (Dated May 1, 2001)
INVESTOR LIFE PLUS (Dated May 1, 2001)

This supplement describes a change regarding the variable annuity contracts and variable life insurance policies listed above issued by ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

Effective May 1, 2008, Transamerica Capital, Inc. (“Distributor”) serves as principal underwriter for your variable annuity contract or your variable life insurance policy. Distributor is a California corporation and its home office is located at 4600 South Syracuse Street, Suite 1100, Denver, Colorado, 80287. Distributor is an indirect, wholly owned subsidiary of AEGON USA, Inc. Distributor is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as well as with the securities commissions in the states in which it operates, and is a member of FINRA (formerly NASD, Inc.).

Merrill Lynch, Pierce, Fenner & Smith Incorporated formerly served as principal underwriter. Accordingly, any references in the Prospectus to Merrill Lynch, Pierce, Fenner & Smith Incorporated as principal underwriter are hereby deleted.

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 333-6524 or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

ML LIFE INSURANCE COMPANY OF NEW YORK

ML OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT SUPPLEMENT DATED DECEMBER 28, 2007 TO THE PROSPECTUSES FOR PRIME PLAN I (DATED APRIL 30, 1991) PRIME PLAN II (DATED APRIL 30, 1991) PRIME PLAN III (DATED APRIL 30, 1991) PRIME PLAN IV (DATED APRIL 30, 1991) PRIME PLAN V (DATED JANUARY 2, 1991) PRIME PLAN VI (DATED APRIL 30, 1991) PRIME PLAN 7 (DATED APRIL 30, 1991) PRIME PLAN INVESTOR (DATED APRIL 30, 1991) DIRECTED LIFE (DATED APRIL 30, 1991) DIRECTED LIFE 2 (DATED APRIL 30, 1991)   ML OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT II SUPPLEMENT DATED DECEMBER 28, 2007 TO THE PROSPECTUSES FOR INVESTOR LIFE (DATED MAY 1, 2001) INVESTOR LIFE PLUS (DATED MAY 1, 2001)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT SUPPLEMENT DATED DECEMBER 28, 2007 TO THE PROSPECTUS FOR PORTFOLIO PLUS (DATED MAY 1, 1993) ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A SUPPLEMENT DATED DECEMBER 28, 2007 TO THE PROSPECTUSES FOR RETIREMENT POWER (DATED MAY 1, 2004) RETIREMENT OPTIMIZER (DATED MAY 1, 2004) INVESTOR CHOICE (INVESTOR SERIES) (DATED MAY 1, 2007) RETIREMENT PLUS (DATED MAY 1, 2007)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT B SUPPLEMENT DATED DECEMBER 28, 2007 TO THE PROSPECTUS FOR RETIREMENT PLUS (DATED MAY 1, 2007)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT C SUPPLEMENT DATED DECEMBER 28, 2007 TO THE PROSPECTUS FOR CONSULTS ANNUITY (DATED MAY 1, 2007)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT D SUPPLEMENT DATED DECEMBER 28, 2007 TO THE PROSPECTUS FOR INVESTOR CHOICE (IRA SERIES) (DATED MAY 1, 2007) MERRILL LYNCH IRA ANNUITY (DATED MAY 1, 2006)

This supplement describes a change regarding the variable annuity contracts and variable life insurance policies listed above issued by ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

On December 28, 2007, ML Life Insurance Company of New York became a wholly-owned indirect subsidiary of Transamerica Corporation. 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. of the Netherlands conducts its business through subsidiary companies engaged primarily in the insurance business. Accordingly, any references in the Prospectus to ML Life Insurance Company of New York as a subsidiary of Merrill Lynch & Co. Inc. or as an affiliate of BlackRock, Inc., Roszel Advisors LLC, or MLPF&S are hereby deleted.

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 333-6524 or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

MERRILL LYNCH LIFE INSURANCE COMPANY   MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT A SUPPLEMENT DATED DECEMBER 12, 2007 TO THE PROSPECTUSES FOR RETIREMENT POWER (DATED MAY 1, 2006) RETIREMENT OPTIMIZER (DATED MAY 1, 2004) INVESTOR CHOICE (INVESTOR SERIES) (DATED MAY 1, 2007) RETIREMENT PLUS (MAY 1, 2007)   MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT B SUPPLEMENT DATED DECEMBER 12, 2007 TO THE PROSPECTUS FOR MERRILL LYNCH RETIREMENT PLUS (DATED MAY 1, 2007)   MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT SUPPLEMENT DATED DECEMBER 12, 2007 TO THE PROSPECTUS FOR PORTFOLIO PLUS (DATED May 1, 2002) ML LIFE INSURANCE COMPANY OF NEW YORK   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A SUPPLEMENT DATED DECEMBER 12, 2007 TO THE PROSPECTUSES FOR RETIREMENT POWER (DATED MAY 1, 2004) RETIREMENT OPTIMIZER (DATED MAY 1, 2004) INVESTOR CHOICE (INVESTOR SERIES) (DATED MAY 1, 2007) RETIREMENT PLUS (DATED MAY 1, 2007)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT B SUPPLEMENT DATED DECEMBER 12, 2007 TO THE PROSPECTUS FOR MERRILL LYNCH RETIREMNT PLUS (DATED MAY 1, 2007)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT SUPPLEMENT DATED DECEMBER 12, 2007 TO THE PROSPECTUS FOR PORTFOLIO PLUS (DATED MAY 1, 1993)

This supplement describes a change to the name and investment objective of the BlackRock Bond V.I. Fund, a series of the BlackRock Variable Series Funds, Inc. This fund is available under the variable annuity contracts listed above (the “Contracts”) issued by Merrill Lynch Life Insurance Company or ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

Effective December 10, 2007, the BlackRock Bond V.I. Fund changed its name to the BLACKROCK TOTAL RETURN V.I. Fund and its investment objective changed: “to maximize total return, consistent with income generation and prudent investment management.” The investment adviser/subadviser and the asset class/investment style have not changed. Also, the portfolio expenses and the share class for this investment option under your Contract have not changed.

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 535-5549 for Contracts issued by Merrill Lynch Life Insurance Company or (800) 333-6524 for Contracts issued by ML Life Insurance Company of New York, or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

MERRILL LYNCH LIFE INSURANCE COMPANY	ML LIFE INSURANCE COMPANY OF NEW YORK
MERRILL LYNCH LIFE VARIABLE ANNUITY	ML OF NEW YORK VARIABLE ANNUITY
SEPARATE ACCOUNT A	SEPARATE ACCOUNT A
SUPPLEMENT DATED OCTOBER 19, 2007	SUPPLEMENT DATED OCTOBER 19, 2007
TO THE	TO THE
PROSPECTUSES FOR	PROSPECTUSES FOR
RETIREMENT POWER	RETIREMENT POWER
(DATED MAY 1, 2006)	(DATED MAY 1, 2004)
RETIREMENT OPTIMIZER	RETIREMENT OPTIMIZER
(DATED MAY 1, 2004)	(DATED MAY 1, 2004)
INVESTOR CHOICE (INVESTOR SERIES)	INVESTOR CHOICE (INVESTOR SERIES)
(DATED MAY 1, 2007)	(DATED MAY 1, 2007)
RETIREMENT PLUS	RETIREMENT PLUS
(DATED MAY 1, 2007)	(DATED MAY 1, 2007)

This supplement describes a change to the variable annuity contracts listed above (the “Contracts”) issued by Merrill Lynch Life Insurance Company and ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

CLOSING AND LIQUIDATION OF PORTFOLIO

At a meeting of the Board of Trustees of Premier VIT held on August 14, 2007, the Board approved the closing and termination of the Premier VIT OpCap Renaissance Portfolio. The Premier VIT OpCap Renaissance Portfolio will cease accepting new investments as soon as reasonably practicable. Accordingly, effective November 9, 2007, the subaccount investing in the Premier VIT OpCap Renaissance Portfolio will be closed to allocations of new premiums and incoming transfers of account value or contract value. If you allocate any portion of a new premium payment to the subaccount investing in the Premier VIT OpCap Renaissance Portfolio after November 9, 2007, we will reject the entire premium payment and await new allocation instructions from you. We will also refuse to execute any transfers directed to the subaccount investing in the Premier VIT OpCap Renaissance Portfolio after November 9, 2007. The Portfolio will terminate on or about January 25, 2008 (the “Portfolio Liquidation Date”).

If you currently have account value or contract value allocated to the subaccount that invests in the Premier VIT OpCap Renaissance Portfolio, we suggest that you provide us with your transfer request as soon as practicable. You may transfer your account value or contract value to any of the subaccounts investing in the Funds listed in your Prospectus (provided your updated investment allocations do not violate any allocation guidelines and restrictions applicable to certain optional guaranteed benefits). The Funds available for investment represent a wide variety of investment objectives and strategies. Please see the section entitled “The Funds” in your Prospectus for a list of the Funds and their investment objectives. You may request a transfer in writing or, once we receive proper authorization, by telephone or through your Financial Advisor or another person that you designate. For more information on transfer requests, please see “Transfers Among Subaccounts” in your Prospectus. To obtain an additional copy of the most current Prospectus or the current prospectus for any of the Funds listed in your Prospectus, you may contact your Financial Advisor or call or write the Service Center at the phone number or address listed below.

If we do not receive your transfer request by the Portfolio Liquidation Date, we will reallocate your account value or contract value from the subaccount

that invests in the Premier VIT OpCap Renaissance Portfolio to the subaccount that invests in the BlackRock Money Market V.I. Fund of the BlackRock Variable Series Funds, Inc. For the year ended December 31, 2006, total expenses were lower for the BlackRock Money Market V.I. Fund than for the Premier VIT OpCap Renaissance Portfolio both before and after waivers and reimbursements.

Note: If you elected any optional benefit features that impose any allocation guidelines and restrictions, you should discuss your reallocation from the Premier VIT OpCap Renaissance Portfolio with your Financial Advisor to ensure that the composition of your updated allocations does not violate any allocation guidelines and restrictions applicable to certain optional guaranteed benefits.

There is no charge for a voluntary transfer of account value or contract value from the subaccount investing in the Premier VIT OpCap Renaissance Portfolio to a subaccount investing in another Fund or for our reallocation of account value or contract value to the subaccount that invests in the BlackRock Money Market V.I. Fund. In addition, if we reallocate your account value or contract value to the subaccount investing in the BlackRock Money Market V.I. Fund, you will not be charged for any transfer from that subaccount to another available subaccount if made within 30 days of the date of the final notice you receive following the Portfolio Liquidation Date The transfer or reallocation also will not count as a transfer for purposes of the twelve free transfers that you receive each contract year.

IF YOU CURRENTLY PARTICIPATE IN AN AUTOMATIC INVESTMENT PROGRAM

Please note that if you are participating in any automatic investment program such as the Rebalancing Program, the Dollar Cost Averaging Program or the Automatic Investment Feature and currently invest in or have designated future allocations to the Premier VIT OpCap Renaissance Portfolio you must provide our Service Center with new allocation instructions as soon as possible. If we do not receive updated allocation instructions from you by November 9, 2007, then your participation in any automatic investment program will terminate on that date.

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 535-5549 (for Contracts issued by Merrill Lynch Life Insurance Company) or (800) 333-6524 (for Contracts issued by ML Life Insurance Company of New York), or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

MERRILL LYNCH LIFE INSURANCE COMPANY   MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT A SUPPLEMENT DATED SEPTEMBER 28, 2007 TO THE PROSPECTUSES FOR RETIREMENT POWER (DATED MAY 1, 2006) RETIREMENT OPTIMIZER (DATED MAY 1, 2004) INVESTOR CHOICE (INVESTOR SERIES) (DATED MAY 1, 2007)   MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT D SUPPLEMENT DATED SEPTEMBER 28, 2007 TO THE PROSPECTUS FOR INVESTOR CHOICE (IRA SERIES) (DATED MAY 1, 2007) IRA ANNUITY (DATED MAY 1, 2007) ML LIFE INSURANCE COMPANY OF NEW YORK   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A SUPPLEMENT DATED SEPTEMBER 28, 2007 TO THE PROSPECTUSES FOR RETIREMENT POWER (DATED MAY 1, 2004) RETIREMENT OPTIMIZER (DATED MAY 1, 2004) INVESTOR CHOICE (INVESTOR SERIES) (DATED MAY 1, 2007)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT D SUPPLEMENT DATED SEPTEMBER 28, 2007 TO THE PROSPECTUS FOR INVESTOR CHOICE (IRA SERIES) (DATED MAY 1, 2007) IRA ANNUITY (DATED MAY 1, 2006)

This supplement describes a change regarding the variable annuity contracts listed above (the “Contracts”) issued by Merrill Lynch Life Insurance Company or ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

Effective September 28, 2007, the names of certain asset allocation models available under the Asset Allocation Program have changed as follows:

PREVIOUS NAME OF MODEL	NEW NAME OF MODEL
Capital Preservation	Conservative
Income	Moderately Conservative
Income and Growth	Moderate
Growth	Moderately Aggressive
Aggressive Growth	Aggressive

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 535-5549 (for Contracts issued by Merrill Lynch Life Insurance Company) or (800) 333-6524 (for Contracts issued by ML Life Insurance Company of New York), or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

ML LIFE INSURANCE COMPANY OF NEW YORK

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A SUPPLEMENT DATED SEPTEMBER 24, 2007 TO THE PROSPECTUSES FOR RETIREMENT POWER (DATED MAY 1, 2004) RETIREMENT OPTIMIZER (DATED MAY 1, 2004) INVESTOR CHOICE (INVESTOR SERIES) (DATED MAY 1, 2007) RETIREMENT PLUS (DATED MAY 1, 2007)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT B SUPPLEMENT DATED SEPTEMBER 24, 2007 TO THE PROSPECTUS FOR RETIREMENT PLUS (DATED MAY 1, 2007)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT C SUPPLEMENT DATED SEPTEMBER 24, 2007 TO THE PROSPECTUS FOR CONSULTS ANNUITY (DATED MAY 1, 2007) ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT D SUPPLEMENT DATED SEPTEMBER 24, 2007 TO THE PROSPECTUS FOR INVESTOR CHOICE (IRA SERIES) (DATED MAY 1, 2007) MERRILL LYNCH IRA ANNUITY (MAY 1, 2006)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT SUPPLEMENT DATED SEPTEMBER 24, 2007 TO THE PROSPECTUS FOR PORTFOLIO PLUS (DATED MAY 1, 1993)   SUPPLEMENT DATED SEPTEMBER 24, 2007 TO THE PROSPECTUS FOR ML NY ASSET I (SM) (DATED MAY 1, 2006)

This supplement describes a change regarding the contracts listed above (the “Contracts”) issued by ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

Effective September 25, 2007, we will not issue a 403(b) Contract in an exchange for the 403(b) contract or custodial account of another provider. In addition, we will not accept any additional contributions from any source to your 403(b) Contract on or after September 25, 2007.

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 333-6524 or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

ML LIFE INSURANCE COMPANY OF NEW YORK

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A SUPPLEMENT DATED AUGUST 31, 2007 TO THE PROSPECTUSES FOR RETIREMENT POWER (DATED MAY 1, 2004) RETIREMENT OPTIMIZER (DATED MAY 1, 2004) INVESTOR CHOICE (INVESTOR SERIES) (DATED MAY 1, 2007) RETIREMENT PLUS (DATED MAY 1, 2007)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT B SUPPLEMENT DATED AUGUST 31, 2007 TO THE PROSPECTUS FOR RETIREMENT PLUS (DATED MAY 1, 2007) ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT C SUPPLEMENT DATED AUGUST 31, 2007 TO THE PROSPECTUS FOR CONSULTS ANNUITY (DATED MAY 1, 2007)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT D SUPPLEMENT DATED AUGUST 31, 2007 TO THE PROSPECTUS FOR INVESTOR CHOICE (IRA SERIES) (DATED MAY 1, 2007) MERRILL LYNCH IRA ANNUITY (MAY 1, 2006)   ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT SUPPLEMENT DATED AUGUST 31, 2007 TO THE PROSPECTUS FOR PORTFOLIO PLUS (DATED MAY 1, 1993)

This supplement describes a change regarding the variable annuity contracts listed above (the “Contracts”) issued by ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

AEGON USA, Inc. signed an agreement on August 13, 2007 to acquire Merrill Lynch Life Insurance Company and ML Life Insurance Company of New York. The transaction is expected to close before the end of the fourth quarter of 2007, subject to customary regulatory approvals and closing conditions. AEGON USA, Inc. is an Iowa corporation that is engaged in the business of providing life insurance and annuity products.

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 333-6524 or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

MERRILL LYNCH LIFE INSURANCE COMPANY

MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT A

SUPPLEMENT DATED SEPTEMBER 29, 2006

TO THE

PROSPECTUSES FOR

MERRILL LYNCH RETIREMENT PLUS

(DATED MAY 1, 2006)

MERRILL LYNCH RETIREMENT POWER

(DATED MAY 1, 2006)

MERRILL LYNCH RETIREMENT OPTIMIZER

(DATED MAY 1, 2004)

MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT B

SUPPLEMENT DATED SEPTEMBER 29, 2006

TO THE

PROSPECTUS FOR

MERRILL LYNCH RETIREMENT PLUS

(DATED MAY 1, 2006)

MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT

SUPPLEMENT DATED SEPTEMBER 29, 2006

TO THE

PROSPECTUS FOR

PORTFOLIO PLUS

(DATED MAY 1, 2002)

ML LIFE INSURANCE COMPANY OF NEW YORK

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A

SUPPLEMENT DATED SEPTEMBER 29, 2006

TO THE

PROSPECTUSES FOR

MERRILL LYNCH RETIREMENT PLUS

(DATED MAY 1, 2006)

MERRILL LYNCH RETIREMENT POWER

(DATED MAY 1, 2004)

MERRILL LYNCH RETIREMENT OPTIMIZER

(DATED MAY 1, 2004)

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT B

SUPPLEMENT DATED SEPTEMBER 29, 2006

TO THE

PROSPECTUS FOR

MERRILL LYNCH RETIREMENT PLUS

(DATED MAY 1, 2006)

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT

SUPPLEMENT DATED SEPTEMBER 29, 2006

TO THE

PROSPECTUS FOR

PORTFOLIO PLUS

(DATED MAY 1, 1993)

This supplement describes a change to the investment adviser, the addition of sub-advisers, and a change to the names of certain funds available under the contracts listed above (the “Contracts”) issued by Merrill Lynch Life Insurance Company or ML Life Insurance Company of New York. Please retain this supplement with your Prospectus for future reference.

Effective on October 2, 2006, the names of the funds listed below will change. In addition, the investment adviser for the funds listed below is changed from Merrill Lynch Investment Managers, L.P. d/b/a Mercury Advisors to BlackRock Advisors, LLC. Accordingly,

in general, references to “Mercury” and “Mercury Advisors” in the Prospectus and Statement of Additional Information are references to “BlackRock” and “BlackRock Advisors, LLC,” respectively. In addition, each fund listed below is sub-advised by one or more of the BlackRock affiliates listed below. The investment objectives of these funds remain unchanged.

PREVIOUS NAME	NEW NAME	INVESTMENT ADVISER(S)/SUBADVISER(s)
FAM VARIABLE SERIES FUNDS, INC.	BLACKROCK VARIABLE SERIES FUNDS, INC.
Mercury American Balanced V.I. Fund	BlackRock Balanced Capital V.I. Fund	BlackRock Advisors, LLC/ BlackRock Financial Management, Inc. and BlackRock Investment Management, LLC
Mercury Basic Value V.I. Fund	BlackRock Basic Value V.I. Fund	BlackRock Advisors, LLC/ BlackRock Investment Management, LLC
Mercury Core Bond V.I. Fund	BlackRock Bond V.I. Fund	BlackRock Advisors, LLC/ BlackRock Financial Management, Inc.
Mercury Domestic Money Market V.I. Fund	BlackRock Money Market V.I. Fund	BlackRock Advisors, LLC/ BlackRock Institutional Management Corporation
Mercury Fundamental Growth V.I. Fund	BlackRock Fundamental Growth V.I.	BlackRock Advisors, LLC/ BlackRock Investment Management, LLC
Mercury Global Allocation V.I. Fund	BlackRock Global Allocation V.I.	BlackRock Advisors, LLC/ BlackRock Investment Management, LLC and BlackRock Asset Management U.K. Limited
Mercury Global Growth V.I. Fund	BlackRock Global Growth V.I. Fund	BlackRock Advisors, LLC/ BlackRock Investment Management, LLC
Mercury Government Bond V.I. Fund	BlackRock Government Income V.I.	BlackRock Advisors, LLC/ BlackRock Financial Management, Inc.
Mercury High Current Income V.I. Fund	BlackRock High Income V.I. Fund	BlackRock Advisors, LLC/ BlackRock Financial Management, Inc.
Mercury Index 500 V.I. Fund	BlackRock S&P 500 Index V.I. Fund	BlackRock Advisors, LLC/ BlackRock Investment Management, LLC
Mercury International Value V.I. Fund	BlackRock International Value V.I.	BlackRock Advisors, LLC/ BlackRock Investment Management, LLC
Mercury Large Cap Core V.I. Fund	BlackRock Large Cap Core V.I. Fund	BlackRock Advisors, LLC/ BlackRock Investment Management, LLC
Mercury Large Cap Growth V.I. Fund	BlackRock Large Cap Growth V.I.	BlackRock Advisors, LLC/ BlackRock Investment Management, LLC
Mercury Large Cap Value V.I. Fund	BlackRock Large Cap Value V.I. Fund	BlackRock Advisors, LLC/ BlackRock Investment Management, LLC
Mercury Value Opportunities V.I. Fund	BlackRock Value Opportunities V.I.	BlackRock Advisors, LLC/ BlackRock Investment Management, LLC
Mercury Utilities and Telecommunications V.I. Fund	BlackRock Utilities and Telecommunications V.I. Fund	BlackRock Advisors, LLC/ BlackRock Investment Management, LLC

Note: All the funds listed above may NOT be available under your Contract.

Merrill Lynch owns approximately 49% of BlackRock, Inc., whose affiliate companies (collectively, “BlackRock”) manage BlackRock mutual funds and other asset management products and services. Because BlackRock is an affiliate of Merrill Lynch, management and employees of BlackRock may be provided a level of access to Merrill Lynch and related information that is not available to affiliates of funds sponsored, managed, or distributed by other asset management companies. Such access and information may include, but are not limited to: the ability to meet with Merrill Lynch Financial Advisors with greater frequency; participation in or access to Merrill Lynch management and Financial Advisor strategy and sales meetings, educational and recreational events, and communications media; and featured placement in Merrill Lynch internal and external websites, workstations and other marketing and sales tools, strategies, and materials.

Merrill Lynch may receive more economic benefits with respect to funds sponsored, managed and/or distributed by companies such as BlackRock in which Merrill Lynch has an economic interest as those companies receive compensation for providing investment advisory, administrative, transfer agency, distribution or other services to such funds.

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 535-5549 for Contracts issued by Merrill Lynch Life Insurance Company or (800) 333-6524 for Contracts issued by ML Life Insurance Company of New York, or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

MERRILL LYNCH LIFE INSURANCE

COMPANY

MERRILL LYNCH LIFE VARIABLE ANNUITY

SEPARATE ACCOUNT A

SUPPLEMENT DATED AUGUST 4, 2006

TO THE

PROSPECTUS DATED MAY 1, 2006

FOR

MERRILL LYNCH RETIREMENT POWER

AND THE

PROSPECTUS DATED MAY 1, 2005

FOR

MERRILL LYNCH RETIREMENT OPTIMIZER

MERRILL LYNCH VARIABLE LIFE

SEPARATE ACCOUNT

SUPPLEMENT DATED AUGUST 4, 2006

TO THE

PROSPECTUS DATED MAY 1, 2002

FOR

LEGACY POWER

ML LIFE INSURANCE COMPANY OF

NEW YORK

ML OF NEW YORK VARIABLE ANNUITY

SEPARATE ACCOUNT A

SUPPLEMENT DATED AUGUST 4, 2006

TO THE

PROSPECTUSES DATED MAY 1, 2004

FOR

MERRILL LYNCH RETIREMENT POWER

MERRILL LYNCH RETIREMENT OPTIMIZER

This supplement describes a change to the name of the Van Kampen Emerging Growth Portfolio (the “Fund”). This Fund is available under the variable annuity contracts and variable life insurance policies listed above (the “Contracts”) issued by Merrill Lynch Life Insurance Company or ML Life Insurance Company of New York. Please retain this supplement with your Contract Prospectus for future reference.

Effective August 15, 2006, the name of the Van Kampen Emerging Growth Portfolio is changed to the VAN KAMPEN STRATEGIC GROWTH PORTFOLIO. Accordingly, all references to the Van Kampen Emerging Growth Portfolio in the Prospectus and Statement of Additional Information are changed to Van Kampen Strategic Growth Portfolio. The investment objective and strategy of the Fund have not changed.

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 535-5549 for Contracts issued by Merrill Lynch Life

Insurance Company or (800) 333-6524 for Contracts issued by ML Life Insurance Company of New York, or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

MERRILL LYNCH LIFE INSURANCE COMPANY

MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT A

SUPPLEMENT DATED FEBRUARY 23, 2005

TO THE

PROSPECTUSES FOR

MERRILL LYNCH RETIREMENT PLUS

(DATED MAY 1, 2004)

MERRILL LYNCH RETIREMENT POWER (DATED MAY 1, 2004)

MERRILL LYNCH RETIREMENT OPTIMIZER (DATED MAY 1, 2004)

MERRILL LYNCH

INVESTOR CHOICE ANNUITY(SM)

(INVESTOR SERIES)

(DATED FEBRUARY 1, 2005)

MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT B

SUPPLEMENT DATED FEBRUARY 23, 2005

TO THE

PROSPECTUS FOR

MERRILL LYNCH RETIREMENT PLUS

(DATED MAY 1, 2004)

ML LIFE INSURANCE COMPANY OF NEW YORK

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A

SUPPLEMENT DATED FEBRUARY 23, 2005

TO THE

PROSPECTUSES FOR

MERRILL LYNCH RETIREMENT PLUS

(DATED MAY 1, 2004)

MERRILL LYNCH RETIREMENT POWER (DATED MAY 1, 2004)

MERRILL LYNCH RETIREMENT OPTIMIZER (DATED MAY 1, 2004)

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT B

SUPPLEMENT DATED FEBRUARY 23, 2005

TO THE

PROSPECTUS FOR

MERRILL LYNCH RETIREMENT PLUS

(DATED MAY 1, 2004)

This supplement describes changes to the name and subadviser of the PIMCO Advisors VIT: PEA Renaissance Portfolio (the “Fund”). This Fund is available under the variable annuity contracts listed above (the “Contracts”) issued by Merrill Lynch Life Insurance Company or ML Life Insurance Company of New York. Please retain this supplement with your Contract Prospectus for future reference.

Effective February 12, 2005, the PEA Renaissance Portfolio changed its name to OPCAP RENAISSANCE PORTFOLIO. In addition, effective February 11, 2005, the Fund terminated PEA Capital LLC as subadviser and Oppenheimer Capital LLC assumed portfolio management responsibility. The change in subadviser will not result in any change in the investment objective, policies, or fees of the Fund as disclosed in the Prospectus.

This information supplements and supersedes the information contained in your Contract Prospectus.

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 535-5549 for Contracts issued by Merrill Lynch Life Insurance Company or (800) 333-6524 for Contracts issued by ML Life Insurance Company of New York, or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

MERRILL LYNCH LIFE INSURANCE COMPANY

MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT A

SUPPLEMENT DATED JANUARY 27, 2005

TO THE

PROSPECTUSES FOR

RETIREMENT POWER

(DATED MAY 1, 2004)

RETIREMENT OPTIMIZER

(DATED MAY 1, 2004)

MERRILL LYNCH VARIABLE LIFE SEPARATE ACCOUNT

SUPPLEMENT DATED JANUARY 27, 2005

TO THE PROSPECTUS FOR

LEGACY POWER

(DATED MAY 1, 2002)

ML LIFE INSURANCE COMPANY OF NEW YORK

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A

SUPPLEMENT DATED JANUARY 27, 2005

TO THE

PROSPECTUSES FOR

RETIREMENT POWER

(DATED MAY 1, 2004)

RETIREMENT OPTIMIZER

(DATED MAY 1, 2004)

This supplement describes changes to the name and the investment policy of the Seligman Small-Cap Value Portfolio of the Seligman Portfolios, Inc. (the “Fund”). This Fund is available under the variable annuity and variable life insurance contracts (collectively, the “Contracts”) listed above issued by Merrill Lynch Life Insurance Company (“MLLIC”) and ML Life Insurance Company of New York (“MLLICNY”). Please retain this supplement with your Contract prospectus for future reference.

Effective January 1, 2005, Seligman Small-Cap Value Portfolio changed its name to Seligman Smaller-Cap Value Portfolio. In addition, the Fund changed its principal investment strategy to permit the Fund to invest generally at least 80% of its net assets in “value” companies with market capitalizations of $3 billion or less as compared to the current limit of up to $2 billion.

This information supplements and supersedes the information contained in the Prospectus.

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 535-5549 for Contracts issued by Merrill Lynch Life Insurance Company (or (800) 354-5333 for Legacy Power Contracts) or (800) 333-6524 for Contracts issued by ML Life Insurance Company of New York, or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

MERRILL LYNCH LIFE INSURANCE COMPANY

MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT A

SUPPLEMENT DATED JULY 12, 2004

TO THE

PROSPECTUSES FOR

RETIREMENT PLUS (DATED MAY 1, 2004)

RETIREMENT POWER (DATED MAY 1, 2004)

RETIREMENT OPTIMIZER (DATED MAY 1, 2004)

MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT B

SUPPLEMENT DATED JULY 12, 2004

TO THE

PROSPECTUS FOR

RETIREMENT PLUS (DATED MAY 1, 2004)

MERRILL LYNCH VARIABLE LIFE SEPARATE ACCOUNT

SUPPLEMENT DATED JULY 12, 2004

TO THE

PROSPECTUSES FOR

INVESTOR LIFE (DATED MAY 1, 2001)

INVESTOR LIFE PLUS (DATED MAY 1, 2001)

ESTATE INVESTOR I (DATED MAY 1, 2001)

ESTATE INVESTOR II (DATED MAY 1, 2001)

MERRILL LYNCH LIFE VARIABLE LIFE SEPARATE ACCOUNT II

SUPPLEMENT DATED JULY 12, 2004

TO THE

PROSPECTUSES FOR

PRIME PLAN I (DATED MAY 1, 1993)

PRIME PLAN II (DATED MAY 1, 1993)

PRIME PLAN III (DATED MAY 1, 1993)

PRIME PLAN IV (DATED MAY 1, 1998)

PRIME PLAN V (DATED MAY 1, 2004)

PRIME PLAN VI (DATED JANUARY 2, 1991)

PRIME PLAN 7 (DATED APRIL 30, 1991)

PRIME PLAN INVESTOR (DATED APRIL 30, 1991)

DIRECTED LIFE (DATED JANUARY 2, 1991)

DIRECTED LIFE 2 (DATED APRIL 30, 1991)

MERRILL LYNCH LIFE VARIABLE ANNUITY SEPARATE ACCOUNT

SUPPLEMENT DATED JULY 12, 2004

TO THE

PROSPECTUS FOR

PORTFOLIO PLUS (DATED MAY 1, 2002)

ML LIFE INSURANCE COMPANY OF NEW YORK

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A

SUPPLEMENT DATED JULY 12, 2004

TO THE

PROSPECTUSES FOR

RETIREMENT PLUS (DATED MAY 1, 2004)

RETIREMENT POWER (DATED MAY 1, 2004)

RETIREMENT OPTIMIZER (DATED MAY 1, 2004)

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT B

SUPPLEMENT DATED JULY 12, 2004

TO THE

PROSPECTUS FOR

RETIREMENT PLUS (DATED MAY 1, 2004)

ML OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT

SUPPLEMENT DATED JULY 12, 2004

TO THE

PROSPECTUSES FOR

PRIME PLAN I (DATED APRIL 30, 1991)

PRIME PLAN II (DATED APRIL 30, 1991)

PRIME PLAN III (DATED APRIL 30, 1991)

PRIME PLAN IV (DATED APRIL 30, 1991)

PRIME PLAN V (DATED JANUARY 2, 1991)

PRIME PLAN VI (DATED APRIL 30, 1991)

PRIME PLAN 7 (DATED APRIL 30, 1991)

PRIME PLAN INVESTOR (DATED APRIL 30, 1991)

DIRECTED LIFE (DATED APRIL 30, 1991)

DIRECTED LIFE 2 (DATED APRIL 30, 1991)

ML OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT II

SUPPLEMENT DATED JULY 12, 2004

TO THE

PROSPECTUSES FOR

INVESTOR LIFE (DATED MAY 1, 2001)

INVESTOR LIFE PLUS (DATED MAY 1, 2001)

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT

SUPPLEMENT DATED JULY 12, 2004

TO THE

PROSPECTUS FOR

PORTFOLIO PLUS (DATED MAY 1, 1993)

This supplement describes changes to the name and investment strategies of Merrill Lynch Small Cap Value V.I. Fund (the “Fund”), a series of the Merrill Lynch Variable Series Funds, Inc. This Fund is available under the variable annuity contracts and variable life insurance policies listed above (the “Contracts”) issued by Merrill Lynch Life Insurance Company or ML Life Insurance Company of New York. Please retain this supplement with your Contract Prospectus for future reference.

Effective July 26, 2004, Merrill Lynch Small Cap Value V.I. Fund will change its name to Merrill Lynch Value Opportunities V.I. Fund. In addition, effective September 15, 2004, the Fund will eliminate its non-fundamental investment restriction to invest at least 80% of its assets in equity securities of small cap companies. This change will not affect the Fund’s investment objective to seek long term growth of capital. The Fund will continue to invest primarily in common stock of small cap companies and emerging growth companies that Fund management believes have special investment value.

This information supplements and supersedes the information contained in your Contract Prospectus.

*    *    *

If you have any questions, please contact your Financial Advisor, or call the Service Center at (800) 535-5549 for Contracts issued by Merrill Lynch Life Insurance Company or (800) 333-6524 for Contracts issued by ML Life Insurance Company of New York, or write the Service Center at P.O. Box 44222, Jacksonville, Florida 32231-4222.

PROSPECTUS

MAY 1, 2004

ML of New York Variable Annuity Separate Account A (the “Account”)

FLEXIBLE PREMIUM INDIVIDUAL DEFERRED VARIABLE ANNUITY CONTRACT (THE “CONTRACT”)

issued by

ML LIFE INSURANCE COMPANY OF NEW YORK

HOME OFFICE: 222 Broadway, 14th Floor

New York, New York 10038

SERVICE CENTER: P.O. Box 44222

Jacksonville, Florida 32231-4222

4804 Deer Lake Drive East

Jacksonville, Florida 32246

PHONE: (800) 333-6524

offered through

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

This Prospectus gives you information you need to know before you invest. Keep it for future reference. Address all communications concerning the Contract to our Service Center at the address above.

The variable annuity contract described here provides a variety of investment features. It also provides options for income protection later in life.

It is important that you understand how the Contract works, and its benefits, costs, and risks. First, some basics.

WHAT IS AN ANNUITY?

An annuity provides for the systematic liquidation of a sum of money at the annuity date through a variety of annuity options. Each annuity option has different protection features intended to cover different kinds of income needs. Many of these annuity options provide income streams that can’t be outlived.

WHAT IS A VARIABLE ANNUITY?

A variable annuity bases its benefits on the performance of underlying investments. These investments may typically include stocks, bonds, and money market instruments. The annuity described here is a variable annuity.

WHAT ARE THE RISKS IN OWNING A VARIABLE ANNUITY?

A variable annuity does not guarantee the performance of the underlying investments. The performance can go up or down. It can even decrease the value of money you’ve put in. You bear all of this risk. You could lose all or part of the money you’ve put in.

HOW DOES THIS ANNUITY WORK?

We put your premium payments as you direct into one or more subaccounts of the Account. In turn, we invest each subaccount’s assets in corresponding portfolios (“Funds”) of the following:

• MERRILL LYNCH VARIABLE SERIES FUNDS, INC.

• Basic Value V.I. Fund

• Core Bond V.I. Fund

• Domestic Money Market V.I. Fund

• Fundamental Growth V.I. Fund

• Government Bond V.I. Fund

• Index 500 V.I. Fund

• International Value V.I. Fund

• Small Cap Value V.I. Fund

• MLIG VARIABLE INSURANCE TRUST

• Roszel/Delaware Trend Portfolio

• Roszel/JP Morgan Small Cap Growth Portfolio

• Roszel/Lord Abbett Affiliated Portfolio

• Roszel/Lord Abbett Bond Debenture Portfolio

• Roszel/Lord Abbett Mid Cap Value Portfolio

• Roszel/PIMCO CCM Capital Appreciation Portfolio

• Roszel/PIMCO Small Cap Value Portfolio

• Roszel/Seligman Mid Cap Growth Portfolio

• AIM VARIABLE INSURANCE FUNDS

• AIM V.I. International Growth Fund

• AIM V.I. Premier Equity Fund

• ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

• AllianceBernstein Growth and Income Portfolio

• AllianceBernstein Premier Growth Portfolio

• AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

• VP Ultra(R) Fund

• DAVIS VARIABLE ACCOUNT FUND, INC.

• Davis Value Portfolio

• FEDERATED INSURANCE SERIES

• Federated Capital Appreciation Fund II

• Federated Kaufmann Fund II

• MFS(R) VARIABLE INSURANCE TRUST(SM)

• MFS Emerging Growth Series

• PIMCO ADVISORS VIT

• PEA Renaissance Portfolio

• PIMCO VARIABLE INSURANCE TRUST

• Total Return Portfolio

• SELIGMAN PORTFOLIOS, INC.

• Seligman Small-Cap Value Portfolio

• VAN KAMPEN LIFE INVESTMENT TRUST

• Comstock Portfolio

• Emerging Growth Portfolio

The value of your Contract at any point in time up to the annuity date is called your contract value. Before the annuity date, you are generally free to direct your contract value among the subaccounts as you wish. You may also withdraw all or part of your contract value. If you die before the annuity date, we pay a death benefit to your beneficiary.

2

We’ve designed this annuity as a long-term investment. Any money you take out of the Contract is subject to tax, and if taken before age 59 1/2 may also be subject to a 10% Federal penalty tax. FOR THESE REASONS, YOU NEED TO CONSIDER YOUR CURRENT AND SHORT-TERM INCOME NEEDS CAREFULLY BEFORE YOU DECIDE TO BUY THE CONTRACT.

WHAT DOES THIS ANNUITY COST?

THIS ANNUITY DOES NOT IMPOSE ANY SALES CHARGES — ON EITHER PURCHASES OR WITHDRAWALS. However, we impose a number of other charges, including an asset-based insurance charge. We provide more details on this charge, as well as a description of all other charges, later in the Prospectus.

This Prospectus contains information about the Contract and the Account that you should know before you invest. A Statement of Additional Information contains more information about the Contract and the Account. We have filed the Statement of Additional Information, dated May 1, 2004, with the Securities and Exchange Commission. We incorporate this Statement of Additional Information by reference. If you want to obtain this Statement of Additional Information, simply call or write us at the phone number or address noted above. There is no charge to obtain it. The Table of Contents for this Statement of Additional Information is found on page 47 of this Prospectus.

The Securities and Exchange Commission (“SEC”) maintains a web site that contains the Statement of Additional Information, material incorporated by reference, and other information regarding registrants that file electronically with the SEC. The address of the site is http://www.sec.gov.

CURRENT PROSPECTUSES FOR THE MERRILL LYNCH VARIABLE SERIES FUNDS, INC., MLIG VARIABLE INSURANCE TRUST, AIM VARIABLE INSURANCE FUNDS, ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC., AMERICAN CENTURY VARIABLE PORTFOLIOS INC., DAVIS VARIABLE ACCOUNT FUND, INC., FEDERATED INSURANCE SERIES, MFS(R) VARIABLE INSURANCE TRUST(SM), PIMCO ADVISORS VIT, PIMCO VARIABLE INSURANCE TRUST, SELIGMAN PORTFOLIOS, INC., AND VAN KAMPEN LIFE INVESTMENT TRUST MUST ACCOMPANY THIS PROSPECTUS. PLEASE READ THESE DOCUMENTS CAREFULLY AND RETAIN THEM FOR FUTURE REFERENCE.

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED THESE CONTRACTS OR DETERMINED THAT THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

3

TABLE OF CONTENTS

DEFINITIONS	8
CAPSULE SUMMARY OF THE CONTRACT	8
Premiums	9
The Account	9
The Funds Available For Investment	9
Fees and Charges	10
Asset-Based Insurance Charge	10
Contract Fee	10
Premium Taxes	10
Fund Expenses	10
Transfers Among Subaccounts	11
Withdrawals	11
Death Benefit	11
Annuity Payments	12
Ten Day Right to Review	12
Replacement of Contracts	12
FEE TABLE	12
YIELDS AND TOTAL RETURNS	15
ML LIFE INSURANCE COMPANY OF NEW YORK	16
THE ACCOUNT	16
Segregation of Account Assets	16
Number of Subaccounts; Subaccount Investments	16
INVESTMENTS OF THE ACCOUNT	17
General Information and Investment Risks	17
Merrill Lynch Variable Series Funds, Inc	17
Basic Value V.I. Fund	18
Core Bond V.I. Fund	18
Domestic Money Market V.I. Fund	18
Fundamental Growth V.I. Fund	18
Government Bond V.I. Fund	18
Index 500 V.I. Fund	18
International Value V.I. Fund	18
Small Cap Value V.I. Fund	18
MLIG Variable Insurance Trust	18
Roszel/Delaware Trend Portfolio	19
Roszel/JP Morgan Small Cap Growth Portfolio	19
Roszel/Lord Abbett Affiliated Portfolio	19
Roszel/Lord Abbett Bond Debenture Portfolio	19
Roszel/Lord Abbett Mid Cap Value Portfolio	19
Roszel/PIMCO CCM Capital Appreciation Portfolio	19
Roszel/PIMCO Small Cap Value Portfolio	19
Roszel/Seligman Mid Cap Growth Portfolio	20
AIM Variable Insurance Funds	20
AIM V.I. International Growth Fund	20
AIM V.I. Premier Equity Fund	20

4

AllianceBernstein Variable Products Series Fund, Inc	20
AllianceBernstein Growth and Income Portfolio	20
AllianceBernstein Premier Growth Portfolio	20
American Century Variable Portfolios, Inc	20
VP Ultra(R) Fund	21
Davis Variable Account Fund, Inc	21
Davis Value Portfolio	21
Federated Insurance Series	21
Federated Capital Appreciation Fund II	21
Federated Kaufmann Fund II	21
MFS(R) Variable Insurance Trust(SM)	21
MFS Emerging Growth Series	22
PIMCO Advisors VIT	22
PEA Renaissance Portfolio	22
PIMCO Variable Insurance Trust	22
Total Return Portfolio	22
Seligman Portfolios, Inc	22
Seligman Small-Cap Value Portfolio	23
Van Kampen Life Investment Trust	23
Comstock Portfolio	23
Emerging Growth Portfolio	23
Purchases and Redemptions of Fund Shares; Reinvestment	23
Material Conflicts, Substitution of Investments and Changes to the Account	23
CHARGES AND DEDUCTIONS	24
Asset-Based Insurance Charge	24
Contract Fee	24
Other Charges	25
Transfer Charges	25
Tax Charges	25
Fund Expenses	25
Premium Taxes	25
FEATURES AND BENEFITS OF THE CONTRACT	26
Ownership of The Contract	26
Issuing the Contract	26
Issue Age	26
Information We Need To Issue The Contract	26
Ten Day Right to Review	26
Premiums	27
Minimum and Maximum Premiums	27
How to Make Payments	27
Automatic Investment Feature	27
Premium Investments	27
Accumulation Units	28
How Are My Contract Transactions Priced?	28
How Do We Determine The Number of Units?	28
Death of Annuitant Prior to Annuity Date	28
Transfers Among Subaccounts	29
General	29
Disruptive Trading	29
Dollar Cost Averaging Program	30
What Is It?	30

5

Participating in the DCA Program	30
Minimum Amounts	30
When Do We Make DCA Transfers?	31
Asset Allocation Program	31
Rebalancing Program	32
Withdrawals and Surrenders	32
When and How Withdrawals are Made	32
Minimum Amounts	33
Systematic Withdrawal Program	33
Surrenders	33
Payments to Contract Owners	33
Contract Changes	34
Death Benefit	34
General	34
Spousal Continuation	34
Calculation of Death Benefit	35
Maximum Anniversary Value	35
Annuity Payments	36
Annuity Options	36
How We Determine Present Value of Future Guaranteed Annuity Payments	37
Payments of a Fixed Amount	37
Payments for a Fixed Period	37
Life Annuity	37
Life Annuity With Payments Guaranteed for 5, 10, 15, or 20 Years	37
Life Annuity With Guaranteed Return of Contract Value	38
Joint and Survivor Life Annuity	38
Joint and Survivor Life Annuity with Payments Guaranteed for 5, 10, 15, or 20 Years	38
Gender-Based Annuity Purchase Rates	38
FEDERAL INCOME TAXES	38
Federal Income Taxes	38
Tax Status of the Contract	39
Diversification Requirements	39
Owner Control	39
Required Distributions	39
Taxation of Annuities	40
In General	40
Withdrawals and Surrenders	40
Annuity Payments	40
Taxation of Death Benefit Proceeds	40
Penalty Tax on Some Withdrawals	40
Transfers, Assignments, or Exchanges of a Contract	41
Withholding	41
Multiple Contracts	41
Possible Changes In Taxation	41
Possible Charge For Our Taxes	41
Foreign Tax Credits	41
Taxation of Qualified Contracts	42
Individual Retirement Annuities	42
Traditional IRAs	42

6

Roth IRAs	42
Other Tax Issues For IRAs and Roth IRAs	42
Tax Sheltered Annuities	43
OTHER INFORMATION	43
Notices and Elections	43
Voting Rights	44
Reports to Contract Owners	44
Selling the Contract	44
State Regulation	45
Legal Proceedings	45
Experts	45
Legal Matters	46
Registration Statements	46
ACCUMULATION UNIT VALUES	47
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION	52
APPENDIX A	53

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DEFINITIONS

accumulation unit: A unit of measure used to compute the value of your interest in a subaccount prior to the annuity date.

annuitant: Annuity payments may depend upon the continuation of a person’s life. That person is called the annuitant.

annuity date: The date on which annuity payments begin.

attained age: The age of a person on the contract date plus the number of full contract years since the contract date.

beneficiary(s): The person(s) designated by you to receive payment upon the death of an owner prior to the annuity date.

contract anniversary: The yearly anniversary of the contract date.

contract date: The effective date of the Contract. This is usually the business day we receive your initial premium at our Service Center.

contract value: The value of your interest in the Account.

contract year: The period from the contract date to the first contract anniversary, and thereafter, the period from one contract anniversary to the next contract anniversary.

Individual Retirement Account or Annuity (“IRA”): A retirement arrangement meeting the requirements of Section 408 or 408A of the Internal Revenue Code (“IRC”).

net investment factor: An index used to measure the investment performance of a subaccount from one valuation period to the next.

nonqualified contract: A Contract issued in connection with a retirement arrangement other than a qualified arrangement described in the IRC.

qualified contract: A Contract issued in connection with a retirement arrangement described under Section 403(b) or 408 of the IRC.

tax sheltered annuity: A Contract issued in connection with a retirement arrangement that receives favorable tax status under Section 403(b) of the IRC.

valuation period: The interval from one determination of the net asset value of a subaccount to the next. Net asset values are determined as of the close of business on each day the New York Stock Exchange is open.

CAPSULE SUMMARY OF THE CONTRACT

This capsule summary provides a brief overview of the Contract. More detailed information about the Contract can be found in the sections of this Prospectus that follow, all of which should be read in their entirety.

The Contract is available as a nonqualified contract or tax sheltered annuity or may be issued as an IRA or purchased through an established IRA or Roth IRA custodial account with Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”). Federal law limits maximum annual contributions to qualified contracts. Transfer amounts from tax sheltered annuity plans that are not subject to the Employee Retirement Income Security Act of 1974, as amended, will be accepted as premium payments, as permitted by law. Other premium payments will not be accepted under a Contract used as a tax sheltered annuity. The Contract is currently not available to be issued as a “stand alone” IRA or as a tax sheltered annuity.

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A VARIABLE ANNUITY PROVIDES FOR TAX DEFERRED GROWTH POTENTIAL. THE TAX ADVANTAGES TYPICALLY PROVIDED BY A VARIABLE ANNUITY ARE ALREADY AVAILABLE WITH TAX-QUALIFIED PLANS, SUCH AS IRAS AND ROTH IRAS. YOU SHOULD CAREFULLY CONSIDER THE ADVANTAGES AND DISADVANTAGES OF OWNING A VARIABLE ANNUITY IN A TAX-QUALIFIED PLAN, AS WELL AS THE COSTS AND BENEFITS OF THE CONTRACT (INCLUDING THE ANNUITY INCOME AND DEATH BENEFITS), BEFORE YOU PURCHASE THE CONTRACT IN A TAX-QUALIFIED PLAN.

We offer other variable annuity contracts that have different contract features, minimum premium amounts, fund selections, and optional programs. However, these other contracts also have different charges that would affect your subaccount performance and contract values. To obtain more information about these contracts, contact our Service Center or your Financial Advisor.

For information concerning compensation paid for the sale of Contracts, see “Other Information — Selling the Contract.”

PREMIUMS

Generally, before the annuity date you can pay premiums as often as you like. The minimum initial premium is $25,000. Subsequent premiums generally must each be $100 or more. The maximum premium that will be accepted without Company approval is $1,000,000. We may refuse to issue a Contract or accept additional premiums under your Contract if the total premiums paid under all variable annuity contracts issued by us and our affiliate, Merrill Lynch Life Insurance Company, on your life (or the life of any older co-owner) exceed $1,000,000. Under an automatic investment feature, you can make subsequent premium payments systematically from your Merrill Lynch brokerage account. For more information, see “Automatic Investment Feature”.

THE ACCOUNT

As you direct, we will put premiums into the subaccounts corresponding to the Funds in which we invest your contract value. For the first 14 days following the contract date, we put all premiums into the ML Domestic Money Market V.I. Subaccount. After the 14 days, we’ll put the money into the subaccounts you’ve selected. Currently, you may allocate premiums or contract value among 18 of the available subaccounts. Generally, within certain limits you may transfer contract value periodically among subaccounts.

THE FUNDS AVAILABLE FOR INVESTMENT

• MERRILL LYNCH VARIABLE SERIES FUNDS, INC.

• Basic Value V.I. Fund

• Core Bond V.I. Fund

• Domestic Money Market V.I. Fund

• Fundamental Growth V.I. Fund

• Government Bond V.I. Fund

• Index 500 V.I. Fund

• International Value V.I. Fund

• Small Cap Value V.I. Fund

• MLIG VARIABLE INSURANCE TRUST

• Roszel/Delaware Trend Portfolio

• Roszel/JP Morgan Small Cap Growth Portfolio

• Roszel/Lord Abbett Affiliated Portfolio

• Roszel/Lord Abbett Bond Debenture Portfolio

• Roszel/Lord Abbett Mid Cap Value Portfolio

• Roszel/PIMCO CCM Capital Appreciation Portfolio

• Roszel/PIMCO Small Cap Value Portfolio

• Roszel/Seligman Mid Cap Growth Portfolio

• AIM VARIABLE INSURANCE FUNDS

• AIM V.I. International Growth Fund

• AIM V.I. Premier Equity Fund

• ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

• AllianceBernstein Growth and Income Portfolio

• AllianceBernstein Premier Growth Portfolio

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• AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

• VP Ultra(R) Fund

• DAVIS VARIABLE ACCOUNT FUND, INC.

• Davis Value Portfolio

• FEDERATED INSURANCE SERIES

• Federated Capital Appreciation Fund II

• Federated Kaufmann Fund II

• MFS(R) VARIABLE INSURANCE TRUST(SM)

• MFS Emerging Growth Series

• PIMCO ADVISORS VIT

• PEA Renaissance Portfolio

• PIMCO VARIABLE INSURANCE TRUST

• Total Return Portfolio

• SELIGMAN PORTFOLIOS, INC.

• Seligman Small–Cap Value Portfolio

• VAN KAMPEN LIFE INVESTMENT TRUST

• Comstock Portfolio

• Emerging Growth Portfolio

If you want detailed information about the investment objectives of the Funds, see “Investments of the Account” and the prospectuses for the Funds.

FEES AND CHARGES

ASSET-BASED INSURANCE CHARGE

We currently impose an asset-based insurance charge of 1.59% annually to cover certain risks. It will never exceed 1.59% annually.

The asset-based insurance charge compensates us for:

• costs associated with the establishment and administration of the Contract;

• mortality risks we assume for the annuity payment and death benefit guarantees made under the Contract; and

• expense risks we assume to cover Contract maintenance expenses.

We deduct the asset-based insurance charge daily from the net asset value of the subaccounts. This charge ends on the annuity date.

CONTRACT FEE

We impose a $40 contract fee at the end of each contract year and upon a full withdrawal to reimburse us for expenses related to maintenance of the Contract only if the greater of contract value, or premiums less withdrawals, is less than $25,000. Accordingly, if your withdrawals have not decreased your investment in the Contract below $25,000, we will not impose this annual fee. We may also waive this fee in certain circumstances where you own more than three Contracts. This fee ends after the annuity date.

PREMIUM TAXES

On the annuity date, we may deduct a charge for any premium taxes imposed by a state. Premium tax rates vary from jurisdiction to jurisdiction. They currently range from 0% to 5%.

FUND EXPENSES

You will bear the costs of advisory fees and operating expenses deducted from Fund assets.

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YOU CAN FIND DETAILED INFORMATION ABOUT ALL FEES AND CHARGES IMPOSED ON THE CONTRACT UNDER “CHARGES AND DEDUCTIONS”.

TRANSFERS AMONG SUBACCOUNTS

Before the annuity date, you may transfer all or part of your contract value among the subaccounts up to twelve times per contract year without charge. You may make more than twelve transfers among available subaccounts, but we may charge $25 per extra transfer. (See “Transfers Among Subaccounts”.) We may impose additional restrictions on transfers. (See “Transfer Among Subaccounts — Disruptive Trading.”)

Several specialized transfer programs are available under the Contract. You cannot use more than one such program at a time.

• First, we offer a Dollar Cost Averaging Program where money you’ve put in a designated subaccount is systematically transferred monthly into other subaccounts you select without charge. The program may allow you to take advantage of fluctuations in fund share prices over time. (See “Dollar Cost Averaging Program”.) (There is no guarantee that Dollar Cost Averaging will result in lower average prices or protect against market loss.)

• Second, through participation in the Asset Allocation Program, you may select one of five asset allocation models. Your contract value is rebalanced quarterly based on the asset allocation model selected. (See “Asset Allocation Program”.)

• Third, you may choose to participate in a Rebalancing Program where we automatically reallocate your contract value quarterly in order to maintain a particular percentage allocation among the subaccounts that you select. (See “Rebalancing Program”.)

WITHDRAWALS

You can withdraw money from the Contract six times each contract year. Additionally, under a Systematic Withdrawal Program, you may have automatic withdrawals of a specified dollar amount made monthly, quarterly, semi-annually, or annually. These systematic withdrawals are in addition to the annual six withdrawals permitted under the Contract. For more information, see “Systematic Withdrawal Program”.

A withdrawal may have adverse tax consequences, including the imposition of a penalty tax on withdrawals prior to age 59 1/2. Withdrawals from tax sheltered annuities are restricted (see “Federal Income Taxes”).

DEATH BENEFIT

Regardless of investment experience, the Contract provides a guaranteed minimum death benefit if you die before the annuity date.

If you are under age 80 when the Contract is issued, the death benefit equals the greatest of premiums less adjusted withdrawals, the contract value, or the Maximum Anniversary Value. The Maximum Anniversary Value equals the greatest anniversary value for the Contract. If you are age 80 or over when the Contract is issued, the death benefit equals the greater of premiums less adjusted withdrawals or the contract value.

You can find more detailed information about the death benefit and how it is calculated, including age limitations that apply, under “Death Benefit”.

The payment of a death benefit may have tax consequences (see “Federal Income Taxes”).

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ANNUITY PAYMENTS

Annuity payments begin on the annuity date and are made under the annuity option you select. You may select an annuity date that cannot be later than the annuitant’s 90th birthday. If you do not select an annuity date, the annuity date for nonqualified Contracts is the first day of the month following the annuitant’s 90th birthday. The annuity date for IRA or tax sheltered annuity Contracts is generally when the owner/annuitant reaches age 70 1/2.

Details about the annuity options available under the Contract can be found under “Annuity Options”. Annuity payments may have tax consequences (see “Federal Income Taxes”).

TEN DAY RIGHT TO REVIEW

When you receive the Contract, review it carefully to make sure it is what you intended to purchase. Generally, within ten days (60 days in the case of a replacement) after you receive the Contract, you may return it for a refund. The Contract will then be deemed void. Some states allow a longer period of time to return the Contract if the Contract is replacing another contract. To receive a refund, return the Contract to our Service Center or to the Financial Advisor who sold it. We will then refund the greater of all premiums paid into the Contract or the contract value as of the date you return the Contract.

REPLACEMENT OF CONTRACTS

Generally, it is not advisable to purchase a Contract as a replacement for an existing annuity contract. You should replace an existing contract only when you determine that the Contract is better for you. You may have to pay a surrender charge on your existing contract. Before you buy a Contract, ask your Financial Advisor if purchasing a Contract could be advantageous, given the Contract’s features, benefits, and charges.

You should talk to your tax advisor to make sure that this purchase will qualify as a tax-free exchange. If you surrender your existing contract for cash and then buy the Contract, you may have to pay Federal income taxes, including possible penalty taxes, on the surrender. Also, because we will not issue the Contract until we have received the initial premium from your existing insurance company, the issuance of the Contract may be delayed.

FEE TABLE

The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the Contract. The first table describes the fees and expenses that you will pay at the time that you buy the Contract, surrender the Contract, or transfer contract value between the subaccounts. State premium taxes may also be deducted.

CONTRACT OWNER TRANSACTION EXPENSES
Sales Load Imposed on Premiums		None
Contingent Deferred Sales Charge (as a % of premium withdrawn)		None
Transfer Fee (1)	$	25

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The next table describes the fees and expenses that you will pay periodically during the time that you own the Contract, not including Fund fees and expenses.

PERIODIC CHARGES OTHER THAN FUND EXPENSES
Annual Contract Fee (2)	$	40
Separate Account Annual Expenses (as a % of average Separate Account value)
Current and Maximum Asset-Based Insurance Charge		1.59	%

The next table shows the minimum and maximum total operating expenses charged by the Funds that you may pay periodically during the time that you own the Contract. More detail concerning each Fund’s fees and expenses is contained in the prospectus for each Fund.

RANGE OF EXPENSES FOR THE FUNDS (3)	MINIMUM			MAXIMUM
TOTAL ANNUAL FUND OPERATING EXPENSES (total of all expenses that are deducted from Fund assets, including management fees, 12b-1 fees, and other expenses)		0.38	%		3.645	(4)

EXAMPLE

This Example is intended to help you compare the cost of investing in the Contract with the cost of investing in other variable annuity contracts. These costs include Separate Account Annual Expenses and Annual Fund Operating Expenses.

The Example assumes that you invest $10,000 in the Contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year and assumes the maximum and minimum fees and expenses of any of the Funds. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

If you surrender, annuitize, or remain invested in the Contract at the end of the applicable time period:

Assuming the maximum fees and expenses of any Fund, your costs would be:

1 YEAR	3 YEARS	5 YEARS	10 YEARS
$      536	$    1,601	$    2,659	$    5,270

Assuming the minimum fees and expenses of any Fund, your costs would be:

1 YEAR	3 YEARS	5 YEARS	10 YEARS
$      205	$      633	$    1,086	$    2,343

Because there is no contingent deferred sales charge, you would pay the same expenses whether you surrender your Contract at the end of the applicable time period or not, based on the same assumptions.

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(1) There is no charge for the first 12 transfers in a contract year. We currently do not, but may in the future, charge a $25 fee on all subsequent transfers.

(2) The contract fee will be assessed annually at the end of each contract year and upon a full withdrawal only if the greater of contract value, or premiums less withdrawals, is less than $25,000.

(3) The Fund expenses used to prepare this table were provided to us by the Funds. We have not independently verified such information. The expenses shown are those incurred for the year ended December 31, 2003 or estimated for the current year. Current or future expenses may be greater or less than those shown. The investment adviser for certain Funds may contractually or voluntarily reimburse or waive Fund expenses. For more information about these arrangements, consult the prospectuses for the Funds.

(4) The maximum expenses shown are for the Federated Kaufmann Fund II. Although not contractually obligated to do so, the adviser, administrator, distributor, and shareholder services provider to this Fund expect to waive and reimburse certain amounts, including the management fee, distribution (12b-1) fee, and shareholder service fee. Total annual operating expenses paid by the Fund (after the anticipated voluntary waiver and reimbursement) are expected to be 1.50% for the fiscal year ending December 31, 2004.

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The Examples do not reflect the $40 contract fee because, based on average contract size and withdrawals, its effect on the examples shown would be negligible. Contractual waivers and reimbursements are reflected in the first year of the example, but not in subsequent years. See the “Charges and Discussions” section in this Prospectus and the Fund prospectuses for a further discussion of fees and charges.

THE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES OR ANNUAL RATES OF RETURN OF ANY FUND. ACTUAL EXPENSES AND ANNUAL RATES OF RETURN MAY BE MORE OR LESS THAN THOSE ASSUMED FOR THE PURPOSE OF THE EXAMPLES.

Condensed financial information containing the accumulation unit value history appears at the end of this Prospectus.

YIELDS AND TOTAL RETURNS

From time to time, we may advertise yields, effective yields, and total returns for the subaccounts. These figures are based on historical earnings and do not indicate or project future performance. We may also advertise performance of the subaccounts in comparison to certain performance rankings and indices. More detailed information on the calculation of performance information appears in the Statement of Additional Information.

Effective yields and total returns for a subaccount are based on the investment performance of the corresponding Fund. Fund expenses influence Fund performance.

The yield of the ML Domestic Money Market V.I. Subaccount refers to the annualized income generated by an investment in the subaccount over a specified 7-day period. The yield is calculated by assuming that the income generated for that 7-day period is generated each 7-day period over a 52-week period and is shown as a percentage of the investment. The effective yield is calculated similarly but, when annualized, the income earned by an investment is assumed to be reinvested. The effective yield will be slightly higher than the yield because of the compounding effect of this assumed reinvestment.

The yield of a subaccount (besides the ML Domestic Money Market V.I. Subaccount) refers to the annualized income generated by an investment in the subaccount over a specified 30-day or one month period. The yield is calculated by assuming the income generated by the investment during that 30-day or one-month period is generated each period over 12 months and is shown as a percentage of the investment.

The average annual total return of a subaccount refers to return quotations assuming an investment has been held in each subaccount for 1, 5 and 10 years, or for a shorter period, if applicable. The average annual total returns represent the average compounded rates of return that would cause an initial investment of $1,000 to equal the value of that investment at the end of each period. These percentages exclude any deductions for premium taxes.

We may also advertise or present yield or total return performance information computed on different bases, but this information will always be accompanied by average annual total returns for the corresponding subaccounts. We may also advertise total return performance information for the Funds. We may also present total return performance information for a subaccount for periods before the date the subaccount commenced operations. If we do, we’ll base performance of the corresponding Fund as if the subaccount existed for the same periods as those indicated for the corresponding Fund, with a level of fees and charges equal to those currently imposed under the Contracts. We may also present total performance information for a hypothetical Contract assuming allocation of the initial premium to more than one subaccount or assuming monthly transfers from one subaccount to designated other subaccounts under a Dollar Cost Averaging Program. We may also present total performance information for a hypothetical Contract assuming participation in the Asset Allocation Program or the Rebalancing Program. This information will reflect the performance of the affected subaccounts for the duration of the allocation under the hypothetical Contract. It will also reflect the deduction of charges described above. This information may also be compared to various indices.

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Advertising and sales literature for the Contracts may also compare the performance of the subaccounts and Funds to the performance of other variable annuity issuers in general or to the performance of particular types of variable annuities investing in mutual funds, with investment objectives similar to each of the Funds corresponding to the subaccounts. Performance information may also be based on rankings by services which monitor and rank the performance of variable annuity issuers in each of the major categories of investment objectives on an industry-wide basis. Advertising and sales literature for the Contracts may also compare the performance of the subaccounts to various indices measuring market performance. These unmanaged indices assume the reinvestment of dividends, but do not reflect any deduction for the expense of operating or managing an investment portfolio.

Advertising and sales literature for the Contracts may also contain information on the effect of tax deferred compounding on subaccount investment returns, or returns in general. The tax deferral may be illustrated by graphs and charts and may include a comparison at various points in time of the return from an investment in a Contract (or returns in general) on a tax-deferred basis (assuming one or more tax rates) with the return on a currently taxable basis.

ML LIFE INSURANCE COMPANY OF NEW YORK

We are a stock life insurance company organized under the laws of the State of New York on November 28, 1973. We are an indirect wholly owned subsidiary of Merrill Lynch & Co., Inc., a corporation whose common stock is traded on the New York Stock Exchange.

Our financial statements can be found in the Statement of Additional Information. You should consider them only in the context of our ability to meet any Contract obligation.

THE ACCOUNT

The ML of New York Variable Annuity Separate Account A (the “Account”) offers through its subaccounts a variety of investment options. Each option has a different investment objective.

We established the Account on August 14, 1991. It is governed by New York law, our state of domicile. The Account is registered with the Securities and Exchange Commission as a unit investment trust under the Investment Company Act of 1940. The Account meets the definition of a separate account under the Federal securities laws. The Account’s assets are segregated from all of our other assets.

SEGREGATION OF ACCOUNT ASSETS

Obligations to contract owners and beneficiaries that arise under the Contract are our obligations. We own all of the assets in the Account. The Account’s income, gains, and losses, whether or not realized, derived from Account assets are credited to or charged against the Account without regard to our other income, gains or losses. The assets in each Account will always be at least equal to the reserves and other liabilities of the Account. If the Account’s assets exceed the required reserves and other Contract liabilities, we may transfer the excess to our general account. Under New York insurance law the assets in the Account, to the extent of its reserves and liabilities, may not be charged with liabilities arising out of any other business we conduct nor may the assets of the Account be charged with any liabilities of other separate accounts.

NUMBER OF SUBACCOUNTS; SUBACCOUNT INVESTMENTS

There are 30 subaccounts currently available through the Account. All subaccounts invest in a corresponding portfolio of the Merrill Lynch Variable Series Funds, Inc. (the “Variable Series Funds”); the MLIG Variable Insurance Trust (the “MLIG Trust”); the AIM

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Variable Insurance Funds (the “AIM V.I. Funds”); the AllianceBernstein Variable Products Series Fund, Inc. (the “AllianceBernstein Fund”); the American Century Variable Portfolios, Inc. (the “American Century Portfolios”); the Davis Variable Account Fund, Inc. (the “Davis Fund”); the Federated Insurance Series (the “Federated Series”); the MFS(R) Variable Insurance Trust(SM) (the “MFS Trust”); the PIMCO Advisors VIT; the PIMCO Variable Insurance Trust (the “PIMCO VIT Trust”); the Seligman Portfolios, Inc. (the “Seligman Portfolios”); or the Van Kampen Life Investment Trust (the “Van Kampen Trust”). Additional subaccounts may be added or closed in the future.

Although the investment objectives and policies of certain Funds are similar to the investment objectives and policies of other portfolios that may be managed or sponsored by the same investment adviser, subadviser, manager, or sponsor, nevertheless, we do not represent or assure that the investment results will be comparable to any other portfolio, even where the investment adviser, subadviser, or manager is the same. Differences in portfolio size, actual investments held, fund expenses, and other factors all contribute to differences in fund performance. For all of these reasons, you should expect investment results to differ. In particular, certain funds available only through the Contract have names similar to funds not available through the Contract. The performance of a fund not available through the Contract does not indicate performance of the similarly named fund available through the Contract.

INVESTMENTS OF THE ACCOUNT

GENERAL INFORMATION AND INVESTMENT RISKS

Information about investment objectives, management, policies, restrictions, expenses, risks, and all other aspects of fund operations can be found in the Funds’ prospectuses and Statements of Additional Information. Read these carefully before investing. Fund shares are currently sold to our separate accounts as well as separate accounts of Merrill Lynch Life Insurance Company (an indirect wholly owned subsidiary of Merrill Lynch & Co., Inc.), and insurance companies not affiliated with us, to fund benefits under certain variable annuity and variable life insurance contracts. Shares of these funds may be offered to certain pension or retirement plans.

The investment adviser of a Fund (or its affiliates) may pay compensation to us or our affiliates, which may be significant, in connection with administration, distribution, or other services provided with respect to the Funds and their availability through the Contracts. The amount of this compensation is based upon a percentage of the assets of the Fund attributable to the Contracts and other contracts that we or our affiliates issue. These percentages differ, and some advisers (or affiliates) may pay more than others. These percentages currently range from 0.15% to 0.375%.

Generally, you should consider the Funds as long-term investments and vehicles for diversification, but not as a balanced investment program. Many of these Funds may not be appropriate as the exclusive investment to fund a Contract for all contract owners. The Fund prospectuses also describe certain additional risks, including investing on an international basis or in foreign securities and investing in lower rated or unrated fixed income securities. There is no guarantee that any Fund will be able to meet its investment objectives. Meeting these objectives depends upon future economic conditions and upon how well Fund management anticipates changes in economic conditions.

MERRILL LYNCH VARIABLE SERIES FUNDS, INC.

The Variable Series Funds is registered with the Securities and Exchange Commission as an open-end management investment company. It currently offers Class I shares of 8 of its separate investment mutual fund portfolios under the Contract.

Merrill Lynch Investment Managers, L.P. (“MLIM”) is the investment adviser to the Variable Series Funds. MLIM, together with its affiliates, Fund Asset Management, L.P., Merrill Lynch Asset Management U.K. Ltd., and Merrill Lynch Investment Managers International Ltd. (all of which operate under the name “Mercury Advisors”), is a

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worldwide mutual fund leader, and had a total of $513 billion in investment company and other portfolio assets under management as of March 31, 2004. It is registered as an investment adviser under the Investment Advisers Act of 1940. MLIM is an indirect subsidiary of Merrill Lynch & Co., Inc. MLIM’s principal business address is 800 Scudders Mill Road, Plainsboro, New Jersey 08536. As the investment adviser, it is paid fees by these Funds for its services. MLIM and Merrill Lynch Life Agency Inc. have entered into a Reimbursement Agreement that limits the operating expenses paid by each Fund of the Variable Series Funds in a given year to 1.25% of its average net assets. A summary of the investment objective and strategy for each Fund is set forth below.

BASIC VALUE V.I. FUND. This Fund seeks capital appreciation and, secondarily, income by investing in securities, primarily equities, that management of the Fund believes are undervalued and therefore represent basic investment value.

CORE BOND V.I. FUND. This Fund seeks to obtain a high level of current income. Secondarily, the Fund seeks capital appreciation when consistent with the foregoing objective. The Fund invests primarily in fixed income securities of any kind rated investment grade, or, if unrated, of comparable quality.

DOMESTIC MONEY MARKET V.I. FUND. This Fund seeks to preserve capital, maintain liquidity, and achieve the highest possible current income consistent with the foregoing objectives by investing in short-term domestic money market securities. Although the Domestic Money Market V.I. Fund seeks to preserve capital, it is possible to lose money by investing in this Fund. During extended periods of low interest rates, the yields of the Domestic Money Market V.I. Subaccount also may become extremely low and possibly negative.

FUNDAMENTAL GROWTH V.I. FUND. This Fund seeks long-term growth of capital. The Fund purchases primarily common stocks of U.S. companies that Fund management believes have shown above-average rates of growth earnings over the long-term. The Fund will generally invest at least 65% of its total assets in equity securities.

GOVERNMENT BOND V.I. FUND. This Fund seeks the highest possible current income consistent with the protection of capital afforded by investing in debt securities issued or guaranteed by the U.S. Treasury or U.S. government agencies, and by instrumentalities.

INDEX 500 V.I. FUND. This Fund seeks investment results that, before expenses, correspond to the aggregate price and yield performance of the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 Index(R)”).

INTERNATIONAL VALUE V.I. FUND. This Fund seeks to provide current income and long-term growth of income, accompanied by growth of capital. In investing the Fund’s assets, the investment adviser follows a value style. This means that it buys stocks that it believes are currently undervalued by the market and thus would have a lower price than their true worth.

Effective following the close of business on November 21, 2003, the Mercury International Value V.I. Fund of the Mercury Variable Trust was merged with and into the International Value V.I. Fund.

SMALL CAP VALUE V.I. FUND. This Fund seeks long term growth of capital by investing in a diversified portfolio of securities, primarily common stocks, of relatively small cap companies and emerging growth companies that Fund management believes have special investment value.

MLIG VARIABLE INSURANCE TRUST

The MLIG Trust is registered with the Securities and Exchange Commission as an open-end management investment company. It currently offers shares of 8 of its separate investment portfolios under the Contract.

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Roszel Advisors, LLC (“Roszel Advisors”), located at 1300 Merrill Lynch Drive, Pennington, New Jersey 08534, serves as the investment manager of the MLIG Trust and each of its portfolios. As investment manager, Roszel Advisors is responsible for overall management of the MLIG Trust and for retaining subadvisers to manage the assets of each portfolio according to its investment objective and strategies. The subadviser for each portfolio is listed below. Roszel Advisors is an indirect subsidiary of Merrill Lynch & Co., Inc. As the investment manager, it is paid fees by the Funds for its services. Roszel Advisors pays all subadvisory fees, not the Fund. A summary of the investment objective and strategy for each Fund is set forth below.

ROSZEL/DELAWARE TREND PORTFOLIO. This Fund seeks long-term capital appreciation. The Portfolio pursues its investment objective by investing at least 65% of its total assets in small capitalization equity securities of companies that the adviser believes have a potential for high earnings growth rates. The subadviser for the Fund is Delaware Management Company.

Effective following the close of business on November 21, 2003, the Roszel/Delaware Trend Portfolio was substituted for the Delaware VIP Trend Portfolio of the Delaware VIP Trust. The Delaware VIP Trend Portfolio is no longer available under the Contract.

ROSZEL/JP MORGAN SMALL CAP GROWTH PORTFOLIO. This Fund seeks long-term capital appreciation. The Fund pursues its investment objective by investing primarily in small capitalization equity securities of companies that the adviser believes have a potential for high earnings growth rates. The subadviser for the Fund is J.P. Morgan Investment Management Inc.

ROSZEL/LORD ABBETT AFFILIATED PORTFOLIO. This Fund seeks long-term capital appreciation and income. The Fund pursues its investment objective by investing primarily in large capitalization equity securities of seasoned U.S. and multinational companies that the adviser believes are undervalued by the market. The subadviser for the Fund is Lord, Abbett & Co. LLC.

ROSZEL/LORD ABBETT BOND DEBENTURE PORTFOLIO. This Fund seeks a high total return through both income and capital appreciation. The Fund invests primarily in a wide variety of income-bearing securities including convertible bonds and debt securities with equity warrants. The subadviser for the Fund is Lord, Abbett & Co. LLC.

ROSZEL/LORD ABBETT MID CAP VALUE PORTFOLIO. This Fund seeks long-term capital appreciation. The Fund pursues its investment objective by investing primarily in mid capitalization equity securities (generally, those with capitalizations between $500 million and $10 billion) that the adviser believes are undervalued by the market. The subadviser for the Fund is Lord, Abbett & Co. LLC.

ROSZEL/PIMCO CCM CAPITAL APPRECIATION PORTFOLIO. This Fund seeks long-term capital appreciation. The Fund pursues its investment objective by investing at least 65% of its total assets in large capitalization equity securities of companies that the adviser believes have a potential for high earnings growth rates. The subadvisers for the Fund are PIMCO Advisors Retail Holdings LLC and Cadence Capital Management LLC.

Effective following the close of business on November 21, 2003, the Roszel/PIMCO CCM Capital Appreciation Portfolio was substituted for the MFS(R) Investors Trust Series of the MFS Trust. The MFS(R) Investors Trust Series is no longer available under the Contract.

ROSZEL/PIMCO SMALL CAP VALUE PORTFOLIO. This Fund seeks long-term capital appreciation. The Fund pursues its investment objective by investing primarily in small capitalization equity securities that the adviser believes are undervalued by the market. The subadvisers for the Fund are PIMCO Advisors Retail Holdings LLC and NFJ Investment Group L.P.

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ROSZEL/SELIGMAN MID CAP GROWTH PORTFOLIO. This Fund seeks long-term capital appreciation. The Fund pursues its investment objective by investing primarily in mid capitalization equity securities of companies that the adviser believes have a potential for high earnings growth rates. The subadviser for the Fund is J. & W. Seligman & Co. Incorporated.

AIM VARIABLE INSURANCE FUNDS

The AIM V.I. Funds is registered with the Securities and Exchange Commission as an open-end, series, management investment company. It currently offers Series I shares of two of its separate investment portfolios under the Contract.

A I M Advisors, Inc. (“AIM”), located at 11 Greenway Plaza, Suite 100, Houston, Texas 77046-1173, serves as the investment adviser to each of the AIM V.I. Funds. As the investment adviser, AIM is paid fees by the Funds for its services. A summary of the investment objective and strategy for each Fund is set forth below.

AIM V.I. INTERNATIONAL GROWTH FUND. This Fund seeks to provide long-term growth of capital by investing in a diversified portfolio of international equity securities whose issuers are considered to have strong earnings momentum.

AIM V.I. PREMIER EQUITY FUND. This Fund seeks to achieve long-term growth of capital. Income is a secondary objective. The Fund invests normally at least 80% of its net assets in equity securities including convertible securities. The Fund may also invest in preferred stocks or debt instruments that have prospects for growth of capital.

ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

The AllianceBernstein Fund is registered with the Securities and Exchange Commission as an open-end management investment company. It currently offers Class A shares of two of its separate investment portfolios under the Contract.

Alliance Capital Management L.P. (“Alliance”), located at 1345 Avenue of the Americas, New York, New York 10105 serves as the investment adviser to each Fund of the AllianceBernstein Fund. Alliance Capital Management Corporation (“ACMC”), the sole general partner of Alliance, is an indirect wholly owned subsidiary of The Equitable Life Assurance Society of the United States, which is in turn a wholly owned subsidiary of AXA Financial, Inc., a holding company which is controlled by AXA, a French insurance holding company for an international group of insurance and related financial services companies. As the investment adviser, Alliance is paid fees by the Funds for its services. A summary of the investment objective and strategy for each Fund is set forth below.

ALLIANCEBERNSTEIN GROWTH AND INCOME PORTFOLIO. This Fund seeks reasonable current income and reasonable opportunity for appreciation through investing primarily in dividend-paying stocks of good quality.

ALLIANCEBERNSTEIN PREMIER GROWTH PORTFOLIO. This Fund seeks growth of capital by pursuing aggressive investment policies. Since investments will be made based upon their potential for capital appreciation, current income is incidental to the objective of capital growth.

AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

The American Century Portfolios is registered with the Securities and Exchange Commission as an open-end management investment company. It currently offers Class I shares of one of its separate investment portfolios under the Contract.

American Century Investment Management, Inc. (“ACIM”), located at 4500 Main Street, Kansas City, Missouri 64111, serves as investment adviser to the American Century Portfolios. As the investment adviser, ACIM is paid fees by the Fund for its services. A summary of the investment objective and strategy for this Fund is set forth below.

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VP ULTRA(R) FUND. This Fund seeks long-term capital growth. The fund managers look for stocks of large companies they believe will increase in value over time, using a growth investment strategy developed by ACIM. This strategy looks for companies with earnings and revenues that are not only growing, but growing at a successively faster, or accelerating pace. This strategy is based on the premise that, over the long term, the stocks of companies with accelerating earnings and revenues have a greater-than-average chance to increase in value.

DAVIS VARIABLE ACCOUNT FUND, INC.

The Davis Fund is registered with the Securities and Exchange Commission as an open-end management investment company. It currently offers shares of one of its separate investment portfolios under the Contract.

Davis Selected Advisers, LP (“Davis Advisers”), located at 2949 East Elvira Road, Tucson, Arizona 85706 serves as the investment adviser to the Davis Value Portfolio. As the investment adviser, Davis Advisers is paid fees by the Fund for its services. Davis Selected Advisers-NY, Inc. (“Davis Advisers-NY”) serves as the subadviser to the Davis Value Portfolio. Davis Advisers-NY is a wholly owned subsidiary of Davis Advisers. Davis Advisers pays the subadvisory fee, not the Davis Value Portfolio. A summary of the investment objective and strategy for the Fund is set forth below.

DAVIS VALUE PORTFOLIO. This Fund seeks to provide long-term growth of capital. The Fund invests primarily in common stock of U.S. companies with market capitalizations of at least $10 billion. These companies are selected based on their potential for long-term growth, long-term return, and minimum risk.

FEDERATED INSURANCE SERIES

The Federated Series is registered with the Securities and Exchange Commission as an open-end management investment company. It currently offers Primary Shares of two of its separate investment portfolios under the Contract.

Federated Equity Management Company of Pennsylvania (“FEMCOPA”), located at Federated Investors Tower, 1001 Liberty Ave., Pittsburgh, PA 15222-3779, serves as investment adviser to the Federated Series. FEMCOPA is a subsidiary of Federated Investors, Inc. As the investment adviser, FEMCOPA is paid fees by the Funds for its services. Federated Global Investment Management Corp., a subsidiary of Federated Investors, Inc., is the subadviser for Federated Kaufmann Fund II. FEMCOPA pays the subadvisory fees, not the Fund. A summary of the investment objective and strategy for each Fund is set forth below.

FEDERATED CAPITAL APPRECIATION FUND II. This Fund seeks capital appreciation. The Fund pursues its investment objective by investing primarily in common stock of companies with large and medium market capitalizations that offer superior growth prospects or of companies whose stock is undervalued.

FEDERATED KAUFMANN FUND II. This Fund seeks capital appreciation. To achieve its objective, the Fund invests primarily in the stocks of small and medium-sized companies that are traded on national security exchanges, the NASDAQ stock market and on the over-the-counter market. Up to 25% of the Fund’s net assets may be invested in foreign securities.

MFS(R) VARIABLE INSURANCE TRUST(SM)

The MFS Trust is registered with the Securities and Exchange Commission as an open-end management investment company. It currently offers Initial Class shares of one of its separate investment portfolios under the Contract.

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MFS(R) Investment Management (“MFS”), located at 500 Boylston Street, Boston, Massachusetts 02116, serves as the investment adviser to the Fund. MFS is a subsidiary of Sun Life of Canada (U.S.) Financial Services Holdings, Inc., which in turn is an indirect wholly owned subsidiary of Sun Life Financial Services of Canada, Inc. (a diversified financial services organization). As the investment adviser, MFS is paid fees by the Fund for its services. A summary of the investment objective and strategy for the Fund is set forth below.

MFS(R) EMERGING GROWTH SERIES. This Fund seeks long-term growth of capital. The Fund invests, under normal market conditions, at least 65% of its net assets in common stocks and related securities of emerging growth companies. These companies are companies that the Fund’s adviser believes are either early in their life cycle but have the potential to become major enterprises or are major enterprises whose rates of earnings growth are expected to accelerate.

PIMCO ADVISORS VIT

PIMCO Advisors VIT is registered with the Securities and Exchange Commission as an open-end, diversified management investment company. It currently offers shares of one of its separate investment portfolios under the Contract.

OpCap Advisors LLC (“OpCap Advisors”), located at 1345 Avenue of the Americas, New York, New York 10105, serves as the investment adviser to the Fund. OpCap Advisors is a subsidiary of Oppenheimer Capital, an investment advisory firm. As the investment adviser, OpCap Advisors is paid fees by the Fund for its services. OpCap Advisors has retained PEA Capital LLC as the subadviser for the Fund. OpCap Advisors pays the subadvisory fees, not the Fund. A summary of the investment objective and strategy for the Fund is set forth below.

PEA RENAISSANCE PORTFOLIO. This Fund seeks long term capital appreciation and income. The Fund invests, under normal conditions, at least 65% of its assets in common stocks of companies with below-average valuations whose business fundamentals are expected to improve. Although the Fund typically invests in companies with market capitalizations of $1 billion to $10 billion at the time of investment, it may invest in companies in any capitalization range. To achieve income, the Fund invests a portion of its assets in income-producing (i.e., dividend-paying) stocks.

PIMCO VARIABLE INSURANCE TRUST

The PIMCO VIT Trust is registered with the Securities and Exchange Commission as an open-end management investment company. It currently offers Administrative Class shares of one of its separate investment portfolios under the Contract.

Pacific Investment Management Company LLC (“PIMCO”), located at 840 Newport Center Drive, Newport Beach, California 92660, serves as the investment adviser to the Total Return Portfolio. PIMCO is a majority-owned subsidiary of Allianz Dresdner Asset Management of America L.P. As the investment adviser, PIMCO is paid fees by the Fund for its services. A summary of the investment objective and strategy for the Fund is set forth below.

TOTAL RETURN PORTFOLIO. This Fund seeks to maximize total return, consistent with preservation of capital and prudent investment management. Under normal circumstances, the Fund invests at least 65% of its assets in a diversified portfolio of fixed income instruments of varying maturities. The average portfolio duration normally varies within a three- to six-year time frame based on PIMCO’s forecast for interest rates.

SELIGMAN PORTFOLIOS, INC.

The Seligman Portfolios is registered with the Securities and Exchange Commission as an open-end diversified management investment company. It currently offers Class 1 shares of one of its separate investment portfolios under the Contract.

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J. & W. Seligman & Co. Incorporated (“Seligman”), located at 100 Park Avenue, New York, New York 10017 serves as the investment adviser to the Seligman Small-Cap Value Portfolio. As the investment adviser, Seligman is paid fees by the Fund for its services. A summary of the investment objective and strategy for the Fund is set forth below.

SELIGMAN SMALL-CAP VALUE PORTFOLIO. This Fund seeks long-term capital appreciation. Generally, the Fund invests at least 80% of its net assets in the common stocks of “value” companies with small market capitalization of up to $2 billion at the time of purchase. Value companies are those companies that the Fund manager believes have been undervalued, either historically, by the market, or by their peers.

VAN KAMPEN LIFE INVESTMENT TRUST

The Van Kampen Trust is registered with the Securities and Exchange Commission as a diversified open-end management company. It currently offers Class I shares of two of its separate investment portfolios under the Contract.

Van Kampen Asset Management (“Van Kampen Management”), located at 1221 Avenue of the Americas, New York, NY 10020, serves as the portfolios’ investment adviser, and is a wholly owned subsidiary of Van Kampen Investments Inc. Van Kampen Investments Inc. is an indirect wholly owned subsidiary of Morgan Stanley. As the investment adviser, Van Kampen Management is paid fees by the Funds for its services. A summary of the investment objective and strategy for each Fund is set forth below.

COMSTOCK PORTFOLIO. This Fund seeks capital growth and income through investments in equity securities, including common stocks, preferred stocks and securities convertible into common and preferred stocks. The Portfolio emphasizes a value style of investing seeking well-established, undervalued companies believed by the Portfolio’s investment adviser to possess the potential for capital growth and income. The Portfolio may invest up to 25% of its total assets in securities of foreign issuers.

EMERGING GROWTH PORTFOLIO. The investment objective of the Fund is to seek capital appreciation. Under normal market conditions, the Fund’s investment adviser seeks to achieve the Fund’s investment objective by investing at least 65% of the Fund’s total assets in a portfolio of common stocks of companies considered by the Fund’s investment adviser to be emerging growth companies.

PURCHASES AND REDEMPTIONS OF FUND SHARES; REINVESTMENT

The Account will purchase and redeem shares of the Funds at net asset value to provide benefits under the Contract. Fund distributions to the Account are automatically reinvested at net asset value in additional shares of the Funds.

MATERIAL CONFLICTS, SUBSTITUTION OF INVESTMENTS AND CHANGES TO THE ACCOUNT

It is conceivable that material conflicts could arise as a result of both variable annuity and variable life insurance separate accounts investing in the Funds. Although no material conflicts are foreseen, the participating insurance companies will monitor events in order to identify any material conflicts between variable annuity and variable life insurance contract owners to determine what action, if any, should be taken. Material conflicts could result from such things as (1) changes in state insurance law, (2) changes in Federal income tax law or (3) differences between voting instructions given by variable annuity and variable life insurance contract owners. If a conflict occurs, we may be required to eliminate one or more subaccounts of the Account or substitute a new subaccount. In responding to any conflict, we will take the action we believe necessary to protect our contract owners.

We may substitute a different investment option for any of the current Funds. A substitution may become necessary if, in our judgment, a portfolio no longer suits the purposes of the Contracts or for any other reason in our sole discretion. This may happen due to a change in laws or regulations, or a change in a portfolio’s investment

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objectives or restrictions, or because the portfolio is no longer available for investment, or for some other reason. A substituted portfolio may have different fees and expenses. Substitution may be made with respect to existing contract value, or future premium payments, or both for some or all classes of Contracts. Furthermore, we may close subaccounts to allocation of premium payments or contract value, or both for some or all classes of Contracts, at any time in our sole discretion. However, before any such substitution, we would obtain any necessary approval of the Securities and Exchange Commission and applicable state insurance departments. We will notify you of any substitutions.

We may also add new subaccounts to the Account, eliminate subaccounts in the Account, deregister the Account under the Investment Company Act of 1940 (the “1940 Act”), make any changes required by the 1940 Act, operate the Account as a managed investment company under the 1940 Act or any other form permitted by law, transfer all or a portion of the assets of a subaccount or separate account to another subaccount or separate account pursuant to a combination or otherwise, and create new separate accounts. Before we make certain changes, we may need approval of the Securities and Exchange Commission and applicable state insurance departments. We will notify you of any changes.

CHARGES AND DEDUCTIONS

We deduct the charges described below to cover costs and expenses, services provided, and risks assumed under the Contracts. The amount of a charge may not necessarily correspond to the costs associated with providing the services or benefits.

ASSET-BASED INSURANCE CHARGE

We currently impose an asset-based insurance charge on the Account that equals 1.59% annually. It will never exceed 1.59%.

We deduct this charge daily from the net asset value of the subaccounts prior to the annuity date. This amount compensates us for mortality risks we assume for the annuity payment and death benefit guarantees made under the Contract. These guarantees include making annuity payments which won’t change based on our actual mortality experience, and providing a guaranteed minimum death benefit under the Contract.

The charge also compensates us for expense risks we assume to cover Contract maintenance expenses. These expenses may include issuing Contracts, maintaining records, and performing accounting, regulatory compliance, and reporting functions. Finally, this charge compensates us for costs associated with the establishment, administration, and distribution of the Contract, including programs like transfers and Dollar Cost Averaging.

If the asset-based insurance charge is inadequate to cover the actual expenses of mortality, maintenance, administration, and distribution, we will bear the loss. If the charge exceeds the actual expenses, we will add the excess to our profit.

CONTRACT FEE

We may charge a $40 contract fee at the end of each contract year. We will only impose this fee if the greater of contract value, or premiums less withdrawals, is less than $25,000. Accordingly, if you have not made any withdrawals from your Contract (or your withdrawals have not decreased your investment in the Contract below $25,000), we will not impose this annual fee.

The contract fee reimburses us for additional expenses related to maintenance of certain Contracts with lower contract values. We do not deduct the contract fee after the annuity date. The contract fee will never increase.

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If the contract fee applies, we will deduct it as follows:

• We deduct this fee from your contract value at the end of each contract year before the annuity date.

• We deduct this fee from your contract value if you surrender the Contract on any date other than a contract anniversary.

• We deduct this fee on a pro rata basis from all subaccounts in which your contract value is invested.

Currently, a contract owner of more than three of these Contracts will be assessed no more than $120 in contract fees annually. We reserve the right to change this limit on contract fees at any time.

OTHER CHARGES

TRANSFER CHARGES

You may make up to twelve transfers among subaccounts per contract year without charge. If you make more than twelve, we may, but currently do not, charge you $25 for each extra transfer. We deduct this charge pro rata from the subaccounts from which you are transferring contract value. Currently, transfers made by us under the Dollar Cost Averaging Program, the Asset Allocation Program, and the Rebalancing Program will not count toward the twelve transfers permitted among subaccounts per contract year without charge. (See “Dollar Cost Averaging Program”, “Asset Allocation Program”, “Rebalancing Program”, and “Transfers Among Subaccounts”.)

TAX CHARGES

We reserve the right, subject to any necessary regulatory approval, to charge for assessments or Federal premium taxes or Federal, state or local excise, profits or income taxes measured by or attributable to the receipt of premiums. We also reserve the right to deduct from the Account any taxes imposed on the Account’s investment earnings. (See “Tax Status of the Contract”.)

FUND EXPENSES

In calculating net asset values, the Funds deduct advisory fees and operating expenses from assets. (See “Fee Table”.) Information about those fees and expenses also can be found in the prospectuses for the Funds, and in the applicable Statement of Additional Information for each Fund.

PREMIUM TAXES

Various states impose a premium tax on annuity premiums when they are received by an insurance company. In other jurisdictions, a premium tax is paid on the contract value on the annuity date.

Premium tax rates vary from jurisdiction to jurisdiction and currently range from 0% to 5%. Although we pay these taxes, if applicable, when due, we won’t deduct them from your contract value until the annuity date. In those jurisdictions that do not allow an insurance company to reduce its current taxable premium income by the amount of any withdrawal, surrender or death benefit paid, we may deduct a charge for these taxes on any withdrawal, surrender or death benefit paid under the Contract.

Premium tax rates are subject to change by law, administrative interpretations, or court decisions. Premium tax amounts will depend on, among other things, the contract owner’s state of residence, our status within that state, and the premium tax laws of that state. New York does not currently impose a premium tax on annuity contracts.

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FEATURES AND BENEFITS OF THE CONTRACT

As we describe the Contract, we will often use the word “you”. In this context “you” means “contract owner”.

OWNERSHIP OF THE CONTRACT

The contract owner is entitled to exercise all rights under the Contract. Unless otherwise specified, the purchaser of the Contract will be the contract owner. The Contract can be owned by a trust or a corporation. However, special tax rules apply to Contracts owned by “non-natural persons” such as corporations or trusts. If you are a human being, you are considered a “natural person.” You may designate a beneficiary. If you die, the beneficiary will receive a death benefit. You may also designate an annuitant. You may change the annuitant at any time prior to the annuity date. If you don’t select an annuitant, you are the annuitant. If your Contract is held in a qualified plan, you should consult with a qualified tax advisor regarding these designations.

If a non-natural person owns the Contract and changes the annuitant, the Internal Revenue Code (IRC) requires us to treat the change as the death of a contract owner. We will then pay the beneficiary the death benefit.

When co-owners are established, they exercise all rights under the Contract jointly unless they elect otherwise. Co-owners may designate a beneficiary to receive benefits on the surviving co-owner’s death. Qualified Contracts may not have co-owners.

You may assign the Contract to someone else by giving notice to our Service Center. Only complete ownership of the Contract may be assigned to someone else. You can’t do it in part. An assignment to a new owner cancels all prior beneficiary designations except a prior irrevocable beneficiary designation. Assignment of the Contract may have tax consequences or may be prohibited on certain qualified Contracts, so you should consult with a qualified tax advisor before assigning the Contract. (See “Federal Income Taxes”.)

ISSUING THE CONTRACT

ISSUE AGE

You can buy a nonqualified Contract if you (and any co-owner) are less than 90 years old. Annuitants on nonqualified Contracts must also be less than 90 years old when we issue the Contract. For qualified Contracts (owned by natural persons), the contract owner and annuitant must be the same person. Contract owners and annuitants on qualified Contracts must be less than 70 1/2 years old when we issue the Contract, unless certain exceptions are met.

INFORMATION WE NEED TO ISSUE THE CONTRACT

Before we issue the Contract, you must complete and return a written application. Once we review and approve the application, and you pay the initial premium, we’ll issue a Contract. Generally, we’ll issue the Contract and invest the premium within two business days of our receiving your premium. If we haven’t received necessary information within five business days, we will return the premium and no Contract will be issued.

TEN DAY RIGHT TO REVIEW

When you receive the Contract, review it carefully to make sure it is what you intended to purchase. Generally, within ten days (60 days in the case of a replacement) after you receive the Contract, you may return it for a refund. The Contract will then be deemed void. Some states allow a longer period of time to return the Contract if the Contract is replacing another contract. To receive a refund, return the Contract to our Service Center or to the Financial Advisor who sold it. We will then refund the greater of all premiums paid into the Contract or the contract value as of the date you return the Contract.

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PREMIUMS

MINIMUM AND MAXIMUM PREMIUMS

The initial premium payment must be $25,000 or more. Subsequent premium payments generally must each be $100 or more. You can make subsequent premium payments at any time before the annuity date. The maximum premium that will be accepted without Company approval is $1,000,000. We may refuse to issue a Contract or accept additional premiums under your Contract if the total premiums paid under all variable annuity contracts issued by us and our affiliate, Merrill Lynch Life Insurance Company, on your life (or the life of any older co-owner) exceed $1,000,000. We also reserve the right to reject premium payments for any other reason.

The Contract is available as a nonqualified contract or may be issued as an IRA or purchased through an established IRA or Roth IRA custodial account with MLPF&S. Federal law limits maximum annual contributions to qualified contracts. Transfer amounts from tax sheltered annuity plans that are not subject to the Employee Retirement Income Security Act of 1974, as amended, will be accepted as premium payments, as permitted by law. Other premium payments will not be accepted under a Contract used as a tax sheltered annuity. We may waive the $100 minimum for premiums paid under IRA Contracts held in custodial accounts with MLPF&S where you’re transferring the complete cash balance of such account into a Contract. The Contract is currently not available to be issued as a “stand alone” IRA or as a tax sheltered annuity.

HOW TO MAKE PAYMENTS

You can pay premiums directly to our Service Center at the address printed on the first page of this Prospectus or have money debited from your MLPF&S brokerage account.

AUTOMATIC INVESTMENT FEATURE

You may make systematic premium payments on a monthly, quarterly, semi-annual or annual basis. Each payment must be for at least $100. Premiums paid under this feature must be deducted from an MLPF&S brokerage account specified by you and acceptable to us. You must specify how premiums paid under this feature will be allocated among the subaccounts. If you select the Asset Allocation Program or the Rebalancing Program, premiums will be allocated based on the model or the specified subaccounts and percentages you have selected. You may change the specified premium amount, the premium allocation, or cancel the Automatic Investment Feature at any time upon notice to us. We reserve the right to make changes to this program at any time.

PREMIUM INVESTMENTS

For the first 14 days following the contract date, we’ll hold all premiums in the ML Domestic Money Market V.I. Subaccount. After the 14 days, we’ll reallocate the contract value to the subaccounts you selected.

Currently, you may allocate your premium among 18 of the subaccounts. Allocations must be made in whole numbers. For example, 12% of a premium received may be allocated to the ML Basic Value V.I. Subaccount, 58% allocated to the ML Government Bond V.I. Subaccount, and 30% allocated to the ML Index 500 V.I. Subaccount. However, you may not allocate 33 1/3% to the ML Basic Value V.I. Subaccount and 66 2/3% to the ML Government Bond V.I. Subaccount. If we don’t get allocation instructions when we receive subsequent premiums, we will allocate those premiums according to the allocation instructions you last gave us. We reserve the right to modify the limit on the number of subaccounts to which future allocations may be made.

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ACCUMULATION UNITS

Each subaccount has a distinct value, called the accumulation unit value. The accumulation unit value for a subaccount varies daily with the performance and expenses of the corresponding fund. We use this value to determine the number of subaccount accumulation units represented by your investment in a subaccount.

HOW ARE MY CONTRACT TRANSACTIONS PRICED?

We calculate an accumulation unit value for each subaccount at the close of business on each day that the New York Stock Exchange is open. Transactions are priced, which means that accumulation units in your Contract are purchased (added to your Contract) or redeemed (taken out of your Contract), at the unit value next calculated after our Service Center receives notice of the transaction. For premium payments and transfers into a subaccount, units are purchased. For payment of Contract proceeds (i.e., withdrawals, surrenders, annuitization, and death benefits), transfers out of a subaccount, and deductions for any contract fee, any transfer charge, and any premium taxes due, units are redeemed.

HOW DO WE DETERMINE THE NUMBER OF UNITS?

We determine the number of accumulation units purchased by dividing the dollar value of the premium payment or the amount transferred into the subaccount by the value of one accumulation unit for that subaccount for the valuation period in which the premium payment or transfer is made. Similarly, we determine the number of accumulation units redeemed by dividing the dollar value of the amount of the Contract proceeds (i.e., withdrawals, surrenders, annuitization, and death benefits), transfers out of a subaccount, and deductions for any contract fee, any transfer charge, and any premium taxes due from a subaccount by the value of one accumulation unit for that subaccount for the valuation period in which the redemption is made. The number of subaccount accumulation units for a Contract will therefore increase or decrease as these transactions are made. The number of subaccount accumulation units for a Contract will not change as a result of investment experience or the deduction of asset-based insurance charges. Instead, this charge and investment experience are reflected in the accumulation unit value.

When we establish a subaccount, we set an initial value for an accumulation unit (usually, $10). Accumulation unit values increase, decrease, or stay the same from one valuation period to the next. An accumulation unit value for any valuation period is determined by multiplying the accumulation unit value for the prior valuation period by the net investment factor for the subaccount for the current valuation period.

The net investment factor is an index used to measure the investment performance of a subaccount from one valuation period to the next. For any subaccount, we determine the net investment factor by dividing the value of the assets of the subaccount for that valuation period by the value of the assets of the subaccount for the preceding valuation period. We subtract from that result the daily equivalent of the asset-based insurance charge for the valuation period. We also take reinvestment of dividends and capital gains into account when we determine the net investment factor.

We may adjust the net investment factor to make provisions for any change in tax law that requires us to pay tax on earnings in the Account or any charge that may be assessed against the Account for assessments or premium taxes or Federal, state or local excise, profits or income taxes measured by or attributable to the receipt of premiums. (See “Other Charges”.)

DEATH OF ANNUITANT PRIOR TO ANNUITY DATE

If the annuitant dies before the annuity date, and the annuitant is not a contract owner, the owner may designate a new annuitant. If a new annuitant is not designated, the contract owner will become the annuitant unless any owner is not a natural person. If any contract owner is not a natural person, no new annuitant may be named and the death benefit will be paid to the beneficiary.

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TRANSFERS AMONG SUBACCOUNTS

GENERAL

Before the annuity date, you may transfer all or part of your contract value among the subaccounts up to twelve times per contract year without charge. You can make additional transfers among subaccounts, but we may charge you $25 for each extra transfer. We will deduct the transfer charge pro rata from among the subaccounts you’re transferring from. Currently, transfers made by us under the Dollar Cost Averaging Program, the Asset Allocation Program, and the Rebalancing Program will not count toward the twelve transfers permitted among subaccounts per contract year without charge. (See “Dollar Cost Averaging Program”, “Asset Allocation Program”, and “Rebalancing Program”.) We reserve the right to change the number of additional transfers permitted each contract year.

Transfers among subaccounts may be made in specific dollar amounts or as a percentage of contract value. You must transfer at least $100 or the total value of a subaccount, if less.

You may request transfers in writing or by telephone, once we receive proper telephone authorization. Transfer requests may also be made through your Merrill Lynch Financial Advisor, or another person you designate, once given instructions we receive proper authorization. Transfers will take effect as of the end of the valuation period on the date the Service Center receives the request. Where you or your authorized representative have not given instructions to a Service Center representative prior to 4:00 p.m. (ET), even if due to our delay in answering your call, we will consider telephone transfer requests to be received the following business day. (See “Other Information — Notices and Elections” for additional information on potential delays applicable to telephone transactions.)

DISRUPTIVE TRADING

Frequent or short-term transfers among subaccounts, such as those associated with “market timing” transactions, can adversely affect the Funds and the returns achieved by contract owners. In particular, such transfers may dilute the value of the Fund shares, interfere with the efficient management of the Funds’ investments, and increase brokerage and administrative costs of the Funds. In order to try to protect our contract owners and the Funds from potentially disruptive or harmful trading activity, we have adopted certain policies and procedures (“Disruptive Trading Procedures”). We employ various means to try to detect such transfer activity, such as periodically examining the number of transfers and/or the number of “round trip” transfers into and out of particular subaccounts made by contract owners within given periods of time and/or examining transfer activity identified by the Funds on a case-by-case basis.

Our policies and procedures may result in restrictions being applied to contract owners who are found to be engaged in disruptive trading activities. We will notify any such contract owner in writing (by mail to the address of record on file with us) of the restrictions that will apply to future transfers under a Contract. Such contract owners will receive one warning prior to imposition of any restrictions on transfers. Potential transfer restrictions may include refusing to execute future transfer requests that violate our Disruptive Trading Procedures or requiring all future transfer requests to be submitted through regular U.S. mail (thereby refusing to accept transfer requests via overnight delivery service, telephone, Internet, facsimile, or other electronic means). Because we have adopted our Disruptive Trading Procedures as a prophylactic measure to protect contract owners from the potential adverse effects of harmful trading activity, please keep in mind that we will impose the restriction stated in the notification on that contract owner even if we cannot identify, in the particular circumstances, any harmful effect from that contract owner’s future transfers.

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Despite our best efforts, we cannot guarantee that our Disruptive Trading Procedures will detect every potential market timer, but we apply our Disruptive Trading Procedures consistently to all contract owners without special arrangement, waiver, or exception. Our ability to detect and deter such transfer activity may be limited by our operational systems and technological limitations. Furthermore, the identification of contract owners determined to be engaged in disruptive or harmful transfer activity involves judgments that are inherently subjective. In our sole discretion, we may revise our Disruptive Trading Procedures at any time without prior notice as necessary to better detect and deter frequent or short-term transfers that may adversely affect other contract owners or the Funds, to comply with state or Federal regulatory requirements, or to impose additional or alternate restrictions on market timers (such as dollar or percentage limits on transfers).

In the future, some Funds may begin imposing redemption fees on short-term trading (i.e., redemptions of mutual fund shares within a certain number of business days after purchase). We reserve the right to administer and collect any such redemption fees on behalf of the Funds. To the extent permitted by applicable law, we also reserve the right to refuse to make a transfer at any time that we are unable to purchase or redeem shares of any of the Funds available through the Account, including any refusal or restriction on purchases or redemptions of their shares as a result of a Fund’s own policies and procedures on disruptive trading activities.

DOLLAR COST AVERAGING PROGRAM

WHAT IS IT?

The Contract offers an optional transfer program called Dollar Cost Averaging (“DCA”). This program allows you to reallocate money at monthly intervals from a designated subaccount to one or more other subaccounts. The DCA Program is intended to reduce the effect of short term price fluctuations on investment cost. Since we transfer the same dollar amount to selected subaccounts monthly, the DCA Program allows you to purchase more accumulation units when prices are low and fewer accumulation units when prices are high. Therefore, you may achieve a lower average cost per accumulation unit over the long-term. However, it is important to understand that a DCA Program does not assure a profit or protect against loss in a declining market. If you choose to participate in the DCA Program you should have the financial ability to continue making transfers through periods of fluctuating markets.

If you choose to participate in the DCA Program, each month we will transfer amounts from the subaccount that you designate and allocate them, in accordance with your allocation instructions, to the subaccounts that you select. If you choose the Asset Allocation Program or the Rebalancing Program, you cannot use the DCA Program. We reserve the right to make changes to this program at any time.

PARTICIPATING IN THE DCA PROGRAM

You can choose the DCA Program any time before the annuity date. You may elect the DCA Program in writing or by telephone, once we receive proper telephone authorization. Once you start using the DCA Program, you must continue it for at least three months. After three months, you may cancel the DCA Program at any time by notifying us in a form satisfactory to us. Once you reach the annuity date, you may no longer use this program.

MINIMUM AMOUNTS

To elect the DCA Program, you need to have a minimum amount of money in the designated subaccount. We determine the amount required by multiplying the specified length of your DCA Program in months by your specified monthly transfer amount. Amounts of $100 or more must be allotted for transfer each month in the DCA Program. We reserve the right to change these minimums. Allocations must be designated in whole percentage increments. No specific dollar amount designations may be made. Should the amount in your selected subaccount drop below the selected monthly transfer amount, we’ll notify you that you need to put more money in to continue the program.

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WHEN DO WE MAKE DCA TRANSFERS?

You select the date for DCA transfers, within certain limitations. We will make the first DCA transfer on the selected date following the later of 14 days after the contract date or the date we receive notice of your DCA election at our Service Center. We’ll make subsequent DCA transfers on the same day of each succeeding month. Currently, we don’t charge for DCA transfers; they are in addition to the twelve annual transfers permitted without charge under the Contract.

ASSET ALLOCATION PROGRAM

Under the Asset Allocation Program, we will allocate your premiums and rebalance your contract value quarterly according to an asset allocation model you select based on your investment goals and risk tolerance. There are currently five asset allocation models to choose from:

• Capital Preservation

• Current Income

• Income and Growth

• Long-Term Growth

• Aggressive Growth

Each model identifies specific subaccounts and the percentage of premium or contract value which should be allocated to each of those subaccounts. We may periodically adjust the composition of each model. Any adjustments become effective at the end of the calendar quarter.

The asset allocation models are not recommendations, have not been designed with your specific financial circumstances in mind, and may not be appropriate for any particular individual. There may be other allocations that would be more appropriate to satisfy your needs and goals.

After you elect the Asset Allocation Program, we allocate your premium in accordance with your selected model. On the last business day of each calendar quarter, we automatically reallocate your contract value to maintain the subaccounts and percentages for your selected model.

We perform this periodic rebalancing to take account of:

• increases and decreases in contract value in each subaccount due to subaccount performance,

• increases and decreases in contract value in each subaccount due to withdrawals, transfers, and premiums, and

• any adjustments we make to your selected model.

The Asset Allocation Program can be elected at issue or at any time subsequent. You may elect the Asset Allocation Program in writing or by telephone, once we receive proper telephone authorization. If you elect the Asset Allocation Program, you must include all contract value in the program. We allocate all systematic investment premiums and, unless you instruct us otherwise, all other premiums in accordance with your selected model. The asset allocation model that you select under the program will override any prior percentage allocations that you have chosen and we will allocate all future premiums accordingly. You may change your selected model at any time. Once elected, you may instruct us, in a form satisfactory to us, at any time to terminate the program. Currently, we don’t charge for transfers under this program; they are in addition to the twelve annual transfers permitted without charge under the Contract.

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We reserve the right to terminate or make changes to this program at any time. If you choose the Rebalancing Program or the DCA Program, you cannot use the Asset Allocation Program.

REBALANCING PROGRAM

Under the Rebalancing Program, we will allocate your premiums and rebalance your contract value quarterly according to the subaccounts and percentages you select based on your investment goals and risk tolerance.

After you elect the Rebalancing Program, we allocate your premiums in accordance with the subaccounts and percentages you have selected. On the last business day of each calendar quarter, we automatically reallocate your contract value to maintain the particular percentage allocation among the subaccounts that you have selected.

We perform this periodic rebalancing to take account of:

• increases and decreases in contract value in each subaccount due to subaccount performance, and

• increases and decreases in contract value in each subaccount due to withdrawals, transfers, and premiums.

The Rebalancing Program can be elected at issue or at any time subsequent. You may elect the Rebalancing Program in writing or by telephone, once we receive proper telephone authorization. If you elect the Rebalancing Program, you must include all contract value in the program. We allocate all systematic investment premiums and, unless you instruct us otherwise, all other premiums in accordance with the particular percentage allocation among the subaccounts that you have selected. The percentages that you select under the Rebalancing Program will override any prior percentage allocations that you have chosen and we will allocate all future premiums accordingly. You may change your allocations at any time. Once elected, you may instruct us, in a form satisfactory to us, at any time to terminate the program. Currently, we don’t charge for transfers under this program; they are in addition to the twelve annual transfers permitted without charge under the Contract.

We reserve the right to make changes to this program at any time. If you choose the Asset Allocation Program or the DCA Program, you cannot use the Rebalancing Program.

WITHDRAWALS AND SURRENDERS

WHEN AND HOW WITHDRAWALS ARE MADE

Before the annuity date, you may make lump-sum withdrawals from the Contract up to six times per contract year. In addition, you may make systematic withdrawals, discussed below. Withdrawals are subject to tax to the extent of gain and prior to age 59 1/2 may also be subject to a 10% Federal penalty tax. Withdrawals from tax sheltered annuities are restricted. (See “Federal Income Taxes”.)

Unless you direct us otherwise, we will make lump-sum withdrawals from subaccounts in the same proportion as the subaccounts bear to your contract value. You may make a withdrawal request in writing to our Service Center or by telephone, once you’ve submitted a proper telephone authorization form to our Service Center, but only if the amount withdrawn is to be paid into a Merrill Lynch brokerage account or sent to the address of record. Where you or your authorized representative have not given instructions to a Service Center representative prior to 4:00 p.m. (ET), even if due to our delay in answering your call, we will consider telephone withdrawal requests to be received the following business day. (See “Other Information — Notices and Elections” for additional information on potential delays applicable to telephone transactions.)

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MINIMUM AMOUNTS

The minimum amount that may be withdrawn is $100. At least $5,000 must remain in the Contract after you make a withdrawal. We reserve the right to change these minimums.

SYSTEMATIC WITHDRAWAL PROGRAM

You may have automatic withdrawals of a specified dollar amount made monthly, quarterly, semi-annually or annually. Each withdrawal must be for at least $100 and the remaining contract value must be at least $5,000. You may change the specified dollar amount or frequency of withdrawals or stop the Systematic Withdrawal Program at any time upon notice to us. We will make systematic withdrawals from subaccounts in the same proportion as the subaccounts bear to your contract value. These systematic withdrawals are in addition to the six lump-sum withdrawals permitted each year under the Contract. We reserve the right to restrict the maximum amount that may be withdrawn each year under the Systematic Withdrawal Program and to make any other changes to this program at any time.

SURRENDERS

At any time before the annuity date you may surrender the Contract through a full withdrawal. Any request to surrender the Contract must be in writing. The Contract must be delivered to our Service Center. We will pay you an amount equal to the contract value as of the end of the valuation period when we process the surrender, minus any applicable contract fee. (See “Charges and Deductions”.) You may receive this amount in a lump sum or apply it under an Annuity Option. (See “Annuity Options”). Surrenders are subject to tax and, prior to age 59 1/2, may also be subject to a 10% Federal penalty tax. Surrenders of tax sheltered annuities before age 59 1/2, death, disability, severance from employment, or hardship may be restricted unless proceeds are transferred to another tax sheltered annuity arrangement. (See “Federal Income Taxes”.)

PAYMENTS TO CONTRACT OWNERS

We’ll make any payments to you usually within seven days of our Service Center receiving your proper request. However, we may delay any payment, or delay processing any annuity payment or transfer request if:

(a) the New York Stock Exchange is closed;

(b) trading on the New York Stock Exchange is restricted by the Securities and Exchange Commission;

(c) the Securities and Exchange Commission declares that an emergency exists making it not reasonably practicable to dispose of securities held in the Account or to determine the value of the Account’s assets;

(d) the Securities and Exchange Commission by order so permits for the protection of security holders; or

(e) payment is derived from a check used to make a premium payment which has not cleared through the banking system.

We reserve the right, at our option, to defer any payments in accordance with the Investment Company Act of 1940, as amended.

Applicable laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to block a contract owner’s ability to make certain transactions and thereby refuse to accept any premium payments or requests for transfers, withdrawals, surrenders, annuitization, or death benefits, until instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your Contract to government regulators.

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CONTRACT CHANGES

Requests to change the owner, beneficiary, annuitant, or annuity date of a Contract will take effect as of the date you sign such a request, unless we have already acted in reliance on the prior status. We are not responsible for the validity of such a request.

If you change the owner or annuitant on a nonqualified Contract, the new owner or annuitant must be less than 90 years old. For qualified Contracts, if you change the owner or annuitant, the new owner or annuitant must be less than 70 1/2 years old.

DEATH BENEFIT

GENERAL

Regardless of investment experience, the Contract provides a guaranteed minimum death benefit to the beneficiary if you die before the annuity date. (If an owner is a non-natural person, then the death of the annuitant will be treated as the death of the owner.) Unless the owner has chosen the manner in which the death benefit is to be paid, we will pay the death benefit in a lump sum unless the beneficiary chooses an annuity payment option available under the Contract. (See “Annuity Options”.) However, if you die before the annuity date, Federal tax law generally requires us to distribute the entire contract value within five years of your date of death. Special rules may apply to a surviving spouse. (See “Federal Income Taxes”.)

We determine the death benefit as of the date we receive certain information at our Service Center. We call this information due proof of death. It consists of the Beneficiary Statement, a certified death certificate, and any additional documentation we may need to process the death claim. If we haven’t received the other documents within 60 days following our receipt of a certified death certificate, we will consider due proof of death to have been received and we will pay the death benefit in a lump sum. For multiple beneficiaries, we will pay the first beneficiary to provide us with due proof of death his or her share of the death benefit. We will not pay any remaining beneficiary his or her share of the death benefit until we receive due proof of death from that beneficiary. Such beneficiaries continue to bear the investment risk that contract value will increase or decrease until such time as they submit due proof of death or 60 days following receipt of a certified death certificate, whichever is sooner.

Unless you irrevocably designated a beneficiary, you may change the beneficiary at any time before the annuity date.

Death benefit proceeds are taxable to the extent of gain. (See “Federal Income Taxes — Taxation of Death Benefit Proceeds”.)

SPOUSAL CONTINUATION

If a contract owner dies prior to the annuity date and the beneficiary is the surviving spouse of the deceased contract owner, such spouse may choose to continue this contract (except under tax sheltered annuities). Your spouse becomes the contract owner and the beneficiary until your spouse names a new beneficiary. If the death benefit which would have been paid to the surviving spouse is greater than the contract value as of the date we determine the death benefit, we will increase the contract value of the continued Contract to equal the death benefit we would have paid to the surviving spouse. Your interest in each subaccount available at that time for allocations of premium and transfers of contract value will be increased by the ratio of your contract value in each subaccount to your contract value prior to the increase. If the surviving co-owner is not the surviving spouse of the deceased owner, the Contract may not be continued under this provision.

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CALCULATION OF DEATH BENEFIT

Maximum Anniversary Value Death Benefit. If you (or the older owner, if the Contract has co-owners, or the annuitant, if the owner is a non-natural person) are under age 80 on the contract date, the death benefit is the greatest of:

(i) the premiums paid into the Contract less “adjusted” withdrawals from the Contract;

(ii) the contract value; or

(iii) the Maximum Anniversary Value.

For this formula, each “adjusted” withdrawal equals the amount withdrawn multiplied by the greater of [(a) or (b)] / (c) where:

a = premiums paid into the Contract less previous “adjusted” withdrawals;

b = the Maximum Anniversary Value; and

c = the contract value.

Values for (a), (b), and (c) are calculated immediately prior to the withdrawal.

Return of Premium Death Benefit. If you (or the older owner, if the Contract has co-owners, or the annuitant, if the owner is a non-natural person) are age 80 or over on the contract date, the death benefit is the greater of:

(i) the premiums paid into the Contract less “adjusted” withdrawals from the Contract; or

(ii) the contract value.

For this formula, each “adjusted” withdrawal equals the amount withdrawn multiplied by (a) / (b) where:

a = premiums paid into the Contract less previous “adjusted” withdrawals; and

b = the contract value.

Both (a) and (b) are calculated immediately prior to the withdrawal.

MAXIMUM ANNIVERSARY VALUE

The Maximum Anniversary Value is equal to the greatest anniversary value for the Contract. An anniversary value is equal to the contract value on a contract anniversary increased by premium payments and decreased by “adjusted” withdrawals since that anniversary. “Adjusted” withdrawals are calculated according to the formula that appears under “Maximum Anniversary Value Death Benefit” above.

To determine the Maximum Anniversary Value, we will calculate an anniversary value for each contract anniversary through the earlier of your attained age 80 or the anniversary on or prior to your date of death. If the Contract has co-owners, we will calculate the anniversary value through the earlier of the older owner’s attained age 80 or the anniversary on or prior to any owner’s date of death if a death benefit is payable. If an owner is a non-natural person, then the annuitant’s age, rather than the owner’s, will be used.

We will calculate the Maximum Anniversary Value based on your age (or the age of the older owner, if the Contract has co-owners, or the annuitant, if the owner is a non-natural person) on the contract date. Subsequent changes in owner will not increase the

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period of time used to determine the Maximum Anniversary Value. If a new owner has not reached attained age 80 and is older than the owner whose age is being used to determine the Maximum Anniversary Value at the time of the ownership change, the period of time used in the calculation of the Maximum Anniversary Value will be based on the age of the new owner at the time of the ownership change. If at the time of an ownership change the new owner is attained age 80 or over, we will use the Maximum Anniversary Value as of the anniversary on or prior to the ownership change, increased by premium payments and decreased by “adjusted” withdrawals since that anniversary.

FOR AN EXAMPLE OF THE CALCULATION OF DEATH BENEFIT, SEE APPENDIX A.

ANNUITY PAYMENTS

We’ll make the first annuity payment on the annuity date, and payments will continue according to the annuity option selected. When you first buy the Contract, the annuity date for nonqualified Contracts is the first day of the month following the annuitant’s 90th birthday. However, you may specify an earlier annuity date. You may change the annuity date at any time before the annuity date. Generally, the annuity date for IRA or tax sheltered annuity Contracts is when the owner/annuitant reaches age 70 1/2. However, we will not require IRA and tax sheltered annuities to annuitize at age 70 1/2 if distributions from the Contract are not necessary to meet Federal minimum distribution requirements.

Contract owners may select from a variety of fixed annuity payment options, as outlined below in “Annuity Options.” If you don’t choose an annuity option, we’ll use the Life Annuity with Payments Guaranteed for 10 Years annuity option. You may change the annuity option before the annuity date. We reserve the right to limit annuity options available to qualified contract owners to comply with the Internal Revenue Code or regulations under it.

We calculate your annuity payments as of the annuity date, not the date when annuitization request forms are received at the Service Center. Until the annuity date, your contract value will fluctuate in accordance with the performance of the investment options you have selected. We determine the dollar amount of annuity payments by applying your contract value on the annuity date to our then current annuity purchase rates. The amount of your annuity payments will not be less than those that would be provided by application of the contract value to purchase a single premium immediate annuity contract offered by us for the same annuity plan. Purchase rates show the amount of periodic payment that a $1000 value buys. These rates are based on the annuitant’s age and sex (where permitted) at the time payments begin, and will assume interest of not less than 3% per year. The rates will never be less than those shown in the Contract.

If the age and/or sex of the annuitant was misstated to us, resulting in an incorrect calculation of annuity payments, we will adjust future annuity payments to reflect the correct age and/or sex. We will deduct any amount we overpaid as the result of a misstatement from future payments with 6% annual interest charges.

Likewise, if we underpaid any amount as the result of a misstatement, we will correct it with the next payment made with 6% annual interest credited.

If the contract value on the annuity date after the deduction of any applicable premium taxes is less than $2,000, we may cash out your Contract in a lump sum. If any annuity payment would be less than $20 per month, we may change the frequency of payments so that all payments will be at least $20. Unless you tell us differently, we’ll make annuity payments directly to your Merrill Lynch brokerage account.

ANNUITY OPTIONS

We currently provide the following fixed annuity payment options. After the annuity date, your Contract does not participate in the performance of the Account. We may in the future offer more options. Once you begin to receive annuity payments, you cannot change

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the annuity option, payment amount, or the payment period. Please note that there is no guarantee that aggregate payments under any of these annuity options will equal the total premiums paid. If you or the annuitant dies while guaranteed payments remain unpaid, several options provide the ability to take the present value of future guaranteed payments in a lump sum.

HOW WE DETERMINE PRESENT VALUE OF FUTURE

GUARANTEED ANNUITY PAYMENTS

Present value refers to the amount of money needed today to fund the remaining guaranteed payments under the annuity payment option you select. The primary factor in determining present value is the interest rate assumption we use. If you are receiving annuity payments under an option that gives you the ability to take the present value of future payments in a lump sum and you elect to take the lump sum, we will use the same interest rate assumption in calculating the present value that we used to determine your payment stream at the time your annuity payments commenced.

PAYMENTS OF A FIXED AMOUNT

We will make equal payments in an amount you choose until the sum of all payments equals the contract value applied, increased for interest credited of at least 3%. The amount you choose must provide at least five years of payments. These payments don’t depend on the annuitant’s life. If the annuitant dies before the guaranteed amount has been paid, you may elect to have payments continued for the amount guaranteed or to receive the present value of the remaining guaranteed payments in a lump sum. If the contract owner dies while guaranteed amounts remain unpaid, the beneficiary may elect to receive the present value of the remaining guaranteed payments in a lump sum.

PAYMENTS FOR A FIXED PERIOD

We will make equal payments for a period you select of at least five years. These payments don’t depend on the annuitant’s life. If the annuitant dies before the end of the period, you may elect to have payments continued for the period guaranteed or to receive the present value of the remaining guaranteed payments in a lump sum. If the contract owner dies while guaranteed amounts remain unpaid, the beneficiary may elect to receive the present value of the remaining guaranteed payments in a lump sum.

* LIFE ANNUITY

We make payments for as long as the annuitant lives. Payments will cease with the last payment made before the annuitant’s death.

LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 5, 10, 15, OR 20 YEARS

We make payments for as long as the annuitant lives. In addition, even if the annuitant dies before the period ends, we guarantee payments for either 5, 10, 15, or 20 years as you selected. If the annuitant dies before the guaranteed period ends, you may elect to have payments continued for the period guaranteed or to receive the present value of the

* These options are “pure” life annuities. Therefore, it is possible for the payee to receive only one annuity payment if the person (or persons) on whose life (lives) payment is based dies after only one payment or to receive only two annuity payments if that person (those persons) dies after only two payments, etc. remaining guaranteed payments in a lump sum. If the contract owner dies while guaranteed amounts remain unpaid, the beneficiary may choose to continue to receive the remaining payments or elect to receive the present value of the remaining guaranteed payments in a lump sum.

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LIFE ANNUITY WITH GUARANTEED RETURN OF CONTRACT VALUE

We make payments for as long as the annuitant lives. In addition, even if the annuitant dies, we guarantee payments until the sum of all annuity payments equals the contract value applied. If the annuitant dies while guaranteed amounts remain unpaid, you may elect to have payments continued for the amount guaranteed or to receive the present value of the remaining guaranteed amount in a lump sum. If the contract owner dies while guaranteed amounts remain unpaid, the beneficiary may choose to continue to receive the remaining payments or elect to receive the present value of the remaining guaranteed amount in a lump sum.

*JOINT AND SURVIVOR LIFE ANNUITY

We make payments for the lives of the annuitant and a designated second person. Payments will continue as long as either one is living.

JOINT AND SURVIVOR LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 5, 10, 15, OR 20 YEARS

We make payments during the lives of the annuitant and a designated second person. Payments will continue as long as either one is living. In addition, even if the annuitant and the designated second person die before the guaranteed period ends, we guarantee payments for either 5, 10, 15, or 20 years as you selected. If the annuitant and the designated second person die before the end of the period, you may elect to have payments continued for the period guaranteed or to receive the present value of the remaining guaranteed payments in a lump sum. If the contract owner dies while guaranteed amounts remain unpaid, the beneficiary may choose to continue to receive the remaining payments or elect to receive the present value of the remaining guaranteed payments in a lump sum.

GENDER-BASED ANNUITY PURCHASE RATES

Generally, the Contract provides for gender-based annuity purchase rates when life annuity options are chosen. Employers and employee organizations considering purchase of the Contract should consult with their legal advisor to determine whether purchasing a Contract containing gender-based annuity purchase rates is consistent with Title VII of the Civil Rights Act of 1964 or other applicable law. We may offer such contract owners Contracts containing unisex annuity purchase rates. Unisex annuity purchase rates will provide the same annuity payments for male or female annuitants that are the same age on their annuity dates.

FEDERAL INCOME TAXES

FEDERAL INCOME TAXES

The following summary discussion is based on our understanding of current Federal income tax law as the Internal Revenue Service (IRS) now interprets it. We can’t guarantee that the law or the IRS’s interpretation won’t change. It does not purport to be complete or to cover all tax situations. This discussion is not intended as tax advice. Counsel or other tax advisors should be consulted for further information.

We haven’t considered any applicable Federal gift, estate or any state or other tax laws. Of course, your own tax status or that of your beneficiary can affect the tax consequences of ownership or receipt of distributions.

* These options are “pure” life annuities. Therefore, it is possible for the payee to receive only one annuity payment if the person (or persons) on whose life (lives) payment is based dies after only one payment or to receive only two annuity payments if that person (those persons) dies after only two payments, etc.

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When you invest in an annuity contract, you usually do not pay taxes on your investment gains until you withdraw the
money — generally for retirement purposes. If your annuity is independent of any formal retirement or pension plan, it is termed a nonqualified contract. If you invest in a variable annuity as part of an individual retirement annuity or tax sheltered annuity, your contract is called a qualified contract. The tax rules applicable to qualified contracts vary according to the type of retirement plan and the terms and conditions of the plan.

TAX STATUS OF THE CONTRACT

DIVERSIFICATION REQUIREMENTS

Section 817(h) of the Internal Revenue Code (IRC) and the regulations under it provide that separate account investments underlying a contract must be “adequately diversified” for it to qualify as an annuity contract under IRC section 72. The Account, through the subaccounts, intends to comply with the diversification requirements of the regulations under Section 817(h). This will affect how we make investments.

OWNER CONTROL

In some circumstances, owners of variable contracts who retain excessive control over the investment of the underlying separate account assets may be treated as the owners of those assets and may be subject to tax on income produced by those assets. Although there is little guidance in this area and published guidance does not address certain aspects of the Contracts, we believe that the owner of a Contract should not be treated as the owner of the underlying assets. We reserve the right to modify the Contracts to bring them into conformity with applicable standards should such modification be necessary to prevent owners of the Contracts from being treated as the owners of the underlying Account assets.

REQUIRED DISTRIBUTIONS

To qualify as an annuity contract under Section 72(s) of the IRC, a nonqualified annuity contract must provide that: (a) if any owner dies on or after the annuity starting date but before all amounts under the contract have been distributed, the remaining amounts will be distributed at least as quickly as under the method being used when the owner died; and (b) if any owner dies before the annuity starting date, all amounts under the contract will be distributed within five years of the date of death. So long as the distributions begin within a year of the owner’s death, the IRS will consider these requirements satisfied for any part of the owner’s interest payable to or for the benefit of a “designated beneficiary” and distributed over the beneficiary’s life or over a period that cannot exceed the beneficiary’s life expectancy. A designated beneficiary is the person the owner names as beneficiary and who assumes ownership when the owner dies. A designated beneficiary must be a natural person. If the deceased owner’s spouse is the designated beneficiary, he or she can continue the contract when such contract owner dies.

The nonqualified Contracts are designed to comply with Section 72(s), although no regulations interpreting these requirements have yet been issued. We will review the Contract and amend it if necessary to make sure that it continues to comply with the section’s requirements when such requirements are clarified by regulation or otherwise.

Other rules regarding required distributions apply to Individual Retirement Annuities and tax sheltered annuities.

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TAXATION OF ANNUITIES

IN GENERAL

IRC Section 72 governs annuity taxation generally. We believe an owner who is a natural person usually won’t be taxed on increases in the value of a contract until there is a distribution (i.e., the owner withdraws all or part of the contract value or takes annuity payments). Assigning, pledging, or agreeing to assign or pledge any part of the contract value usually will be considered a distribution. Distributions of accumulated investment earnings are taxable as ordinary income.

The owner of any annuity contract who is not a natural person (e.g., a corporation or a trust) generally must include in income any increase in the excess of the contract value over the “investment in the contract” during the taxable year. There are some exceptions to this rule and a prospective owner that is not a natural person may wish to discuss them with a competent tax advisor.

The following discussion applies generally to contracts owned by a natural person:

WITHDRAWALS AND SURRENDERS

When you take a withdrawal from a nonqualified contract, the amount received generally will be treated as ordinary income subject to tax up to an amount equal to the excess (if any) of the contract value immediately before the distribution over the investment in the contract (generally, the premiums or other consideration paid for the contract, reduced by any amount previously distributed from the contract that was not subject to tax) at that time. In the case of a withdrawal under a qualified contract, a ratable portion of the amount received is taxable, generally based on the ratio of the “investment in the contract” to the individual’s total account balance or accrued benefit under the retirement plan. The “investment in the contract” generally equals the amount of any non-deductible premium payments paid by or on behalf of any individual. In many cases, the “investment in the contract” under a qualified contract can be zero.

If you withdraw your entire contract value, you will be taxed only on the part that exceeds your investment in the Contract.

ANNUITY PAYMENTS

Although tax consequences may vary depending on the annuity option selected under an annuity contract, a portion of each annuity payment is generally not taxed and the remainder is taxed as ordinary income. The non-taxable portion of an annuity payment is generally determined in a manner that is designed to allow you to recover your investment in the Contract ratably on a tax-free basis over the expected stream of annuity payments, as determined when annuity payments start. Once your investment in the Contract has been fully recovered, however, the full amount of each annuity payment is subject to tax as ordinary income.

TAXATION OF DEATH BENEFIT PROCEEDS

Amounts may be paid from a Contract because an owner or annuitant (if an owner is not a natural person) has died. If the payments are made in a single sum, they’re taxed the same way a full withdrawal from the Contract is taxed. If they are distributed as annuity payments, they’re taxed as annuity payments.

PENALTY TAX ON SOME WITHDRAWALS

You may have to pay a penalty tax (10 percent of the amount treated as taxable income) on some withdrawals. However, there is usually no penalty on distributions:

(1) on or after you reach age 59 1/2;

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(2) after you die (or after the annuitant dies, if an owner isn’t an individual);

(3) after you become disabled; or

(4) that are part of a series of substantially equal periodic (at least annual) payments for your life (or life expectancy) or the joint lives (or life expectancies) of you and your beneficiary.

Other exceptions may be applicable under certain circumstances and special rules may apply in connection with the exceptions listed above. Also, additional exceptions apply to distributions from an Individual Retirement Annuity or tax sheltered annuity. You should consult a tax advisor with regard to exceptions from the penalty tax.

TRANSFERS, ASSIGNMENTS, OR EXCHANGES OF A CONTRACT

Transferring or assigning ownership of the Contract, selecting certain annuity dates, designating an annuitant, designating a payee or beneficiary who is not also the owner, or exchanging a Contract can have other tax consequences that we don’t discuss here. If you’re thinking about any of those transactions, contact a tax advisor.

WITHHOLDING

Annuity distributions usually are subject to withholding for the recipient’s Federal income tax liability at rates that vary according to the type of distribution and the recipient’s tax status. However, except for certain distributions from tax sheltered annuities, recipients can usually choose not to have tax withheld from distributions.

MULTIPLE CONTRACTS

All nonqualified deferred annuity Contracts that we (or our affiliates) issue to the same owner during any calendar year are generally treated as one annuity Contract for purposes of determining the amount includible in such owner’s income when a taxable distribution occurs. This could affect when income is taxable and how much is subject to the ten percent penalty tax discussed above.

POSSIBLE CHANGES IN TAXATION

Although the likelihood of legislative change is uncertain, there is always the possibility that the tax treatment of the Contracts could change by legislation or other means. It is also possible that any change could be retroactive (that is, effective prior to the date of the change). A tax advisor should be consulted with respect to legislative developments and their effect on the Contract.

We have the right to modify the Contract in response to legislative changes that could otherwise diminish the favorable tax treatment that annuity contract owners currently receive. We make no guarantee regarding the tax status of any contract and do not intend the above discussion as tax advice.

POSSIBLE CHARGE FOR OUR TAXES

Currently we don’t charge the Account for any Federal, state, or local taxes on them or the Contracts (other than any applicable premium taxes), but we reserve the right to charge the Account or the Contracts for any tax or other cost resulting from the tax laws that we believe should be attributed to them.

FOREIGN TAX CREDITS

To the extent that any Fund makes the appropriate election, certain foreign taxes paid by the Fund will be treated as being paid by the Company, which may deduct or claim a tax credit for such taxes. The benefits of any such deduction or credit will not be passed through to the contract owners.

41

TAXATION OF QUALIFIED CONTRACTS

The tax rules applicable to qualified Contracts vary according to the type of retirement plan and the terms and conditions of the plan. Your rights under a qualified Contract may be subject to the terms of the retirement plan itself, regardless of the terms of the qualified Contract. Adverse tax consequences may result if you do not ensure that contributions, distributions, and other transactions with respect to the Contract comply with the law.

INDIVIDUAL RETIREMENT ANNUITIES

TRADITIONAL IRAS

Section 408 of the IRC permits eligible individuals to contribute to an individual retirement program known as an “Individual Retirement Annuity” or “IRA.” This Contract is currently not available for purchase as a “stand alone” IRA, but is available through an established IRA custodial account with MLPF&S. An individual may make annual contributions of up to the lesser of the limit in the IRC or 100% of compensation includible in the individual’s gross income. The contributions may be deductible in whole or in part, depending on the individual’s income. Distributions from certain pension plans may be “rolled over” into an IRA on a tax-deferred basis without regard to these limits. Amounts in the IRA (other than nondeductible contributions) are taxed when distributed from the IRA. A 10% penalty tax generally applies to distributions made before age 59 1/2, unless certain exceptions apply. IRAs have minimum distribution rules that govern the timing and amount of distributions. You should refer to your adoption agreement or consult a tax advisor for more information about these distribution rules. Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions with respect to the Contract comply with the law.

ROTH IRAS

The Contract is available for purchase by an individual who has separately established a Roth IRA custodial account with MLPF&S. Roth IRAs, as described in section 408A of the IRC, permit certain eligible individuals to contribute to make non-deductible contributions to a Roth IRA in cash or as a rollover or transfer from another Roth IRA or other IRA. An individual may make annual contributions to a Roth IRA of up to the lesser of the limit in the IRC or 100% of compensation includible in the individual’s gross income. A rollover from or conversion of an IRA to a Roth IRA is generally subject to tax and other special rules apply. You may wish to consult a tax advisor before combining any converted amounts with any other Roth IRA contributions, including any other conversion amounts from other tax years. Distributions from a Roth IRA generally are not taxed, except that, once aggregate distributions exceed contributions to the Roth IRA, income tax and a 10% penalty tax may apply to distributions made (1) before age 59 1/2 (subject to certain exceptions) or (2) during the five taxable years starting with the year in which the first contribution is made to any Roth IRA. A 10% penalty tax may apply to amounts attributable to a conversion from an IRA if they are distributed during the five taxable years beginning with the year in which the conversion was made.

OTHER TAX ISSUES FOR IRAS AND ROTH IRAS

Total annual contributions to all of an individual’s IRAs and Roth IRAs may not exceed the limit in the IRC or 100% of compensation includible in the individual’s gross income. Distributions from an IRA or Roth IRA generally are subject to withholding for the participant’s Federal income tax liability. The withholding rate varies according to the type of distribution and the owner’s tax status. The owner will be provided the opportunity to elect not have tax withheld from distributions.

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The IRS has not reviewed the Contract for qualification as an IRA or Roth IRA, and has not addressed in a ruling of general applicability whether a death benefit provision, such as the enhanced death benefit provision, adversely affects the qualification of the policy as an IRA or Roth IRA.

TAX SHELTERED ANNUITIES

The Contract is currently not available for purchase as a tax sheltered annuity. Section 403(b) of the IRC allow employees of certain Section 501(c)(3) organizations and public schools to exclude from their gross income the premium payments made, within certain limits, on a contract that will provide an annuity for the employee’s retirement. These payments may be subject to FICA (social security) tax. Transfer amounts from tax sheltered annuity plans that are not subject to the Employee Retirement Income Security Act of 1974, as amended, are accepted as premium payments, as permitted by law, under a Contract. Other premium payments, including premium payments subject to IRC Section 402(g), will not be accepted. Distributions of (1) salary reduction contributions made in years beginning after December 31, 1988; (2) earnings on those contributions; and (3) earnings on amounts held as of the last year beginning before January 1, 1989, are not allowed prior to age 59 1/2, severance from employment, death, or disability. Salary reduction contributions may also be distributed upon hardship, but would generally be subject to penalties. “Eligible rollover distributions” from tax sheltered annuities are subject to a mandatory Federal income tax withholding of 20%. An eligible rollover distribution is any distribution to an employee (or employee’s spouse or former spouse as beneficiary or alternate payee) from such a plan, except certain distributions such as distributions required by the Code, distributions in a specified annuity form, hardship distributions or certain nontaxable distributions. The 20% withholding does not apply, however, if the employee chooses a “direct rollover” from the plan to a tax-qualified plan, IRA or tax sheltered annuity or to a governmental 457 plan that agrees to separately account for rollover contributions. The Contract includes an enhanced death benefit provision that could be characterized as an incidental benefit, the amount of which is limited in a tax sheltered annuity. Because the death benefit may exceed this limitation, individuals using the contract in connection with such plans should consult their tax advisors.

OTHER INFORMATION

NOTICES AND ELECTIONS

You must send any changes, notices, and/or choices for your Contract to our Service Center. These requests must be in writing and signed unless you have submitted a telephone authorization form. If you have submitted an authorization form, you may make the following choices via telephone:

1. Transfers

2. Premium allocation

3. Withdrawals, other than full surrenders

4. Requests to change the annuity date

We will use reasonable procedures to confirm that a telephone request is proper. These procedures may include possible tape recording of telephone calls and obtaining appropriate identification before effecting any telephone transactions. We do not have any liability if we act on a request that we reasonably believe is proper.

Because telephone transactions will be available to anyone who provides certain information about you and your Contract, you should protect that information. We may not be able to verify that you are the person providing telephone instructions, or that you have authorized any such person to act for you.

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Telephone systems may not always be available. Any telephone system, whether it is yours, your service provider’s, your Financial Advisor’s, or ours, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of your request. Where you or your authorized representative have not given instructions to a Service Center representative prior to 4:00 p.m. (ET), even if due to our delay in answering your call, we will consider requests to be received the following business day. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances. If you are experiencing problems, you should make your request by writing to our Service Center.

VOTING RIGHTS

We own all Fund shares held in the Account. As the owner, we have the right to vote on any matter put to vote at any Funds’ shareholder meetings. However, we will vote all Fund shares attributable to Contracts by following instructions we receive from you. If we don’t receive voting instructions, we’ll vote those shares in the same proportion as shares for which we receive instructions. We determine the number of shares you may give voting instructions on by dividing your interest in a subaccount by the net asset value per share of the corresponding Fund. We’ll determine the number of shares you may give voting instructions on as of a record date we choose. We may vote Fund shares in our own right if laws change to permit us to do so.

You have voting rights until the annuity date. You may give voting instructions concerning:

(1) the election of a Fund’s Board of Directors;

(2) ratification of a Fund’s independent accountant;

(3) approval of the investment advisory agreement for a Fund corresponding to your selected subaccounts;

(4) any change in a fundamental investment policy of a Fund corresponding to your selected subaccounts; and

(5) any other matter requiring a vote of the Fund’s shareholders.

REPORTS TO CONTRACT OWNERS

At least once each contract year before the annuity date, we will send you information about your Contract. It will outline all your Contract transactions during the year, your Contract’s current number of accumulation units in each subaccount, the value of each accumulation unit of each subaccount, and the contract value.

You will also receive an annual and a semi-annual report containing financial statements and a list of portfolio securities of the Funds.

SELLING THE CONTRACT

We have entered into a distribution agreement with our affiliate, Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Distributor”), for the distribution and sale of the Contracts. Distributor offers the Contracts through its registered representatives (“Financial Advisors”). The Financial Advisors are registered with the NASD, Inc., licensed as insurance agents in the states in which they do business, and appointed through Merrill Lynch Life Agency Inc. as our insurance agents. Merrill Lynch Life Agency Inc. is a wholly owned subsidiary of Distributor.

We pay commissions to Merrill Lynch Life Agency Inc. for sales of the Contracts by the Financial Advisors. Pursuant to a sales agreement, Merrill Lynch Life Agency Inc. pays Distributor a portion of the commissions it receives from us for the sales of the Contracts, and the Distributor pays the Financial Advisors a portion of the commissions

44

it receives from Merrill Lynch Life Agency Inc. for the sales of the Contracts. Merrill Lynch Life Agency Inc. also pays the District Annuity Specialists a portion of the commissions it receives for the sales of the Contracts. Each District Annuity Specialist provides training and marketing support to Financial Advisors in a specific geographic region and is compensated based on sales of the Contracts in that region.

The maximum amount of commissions paid to Merrill Lynch Life Agency Inc. is 1.85% of each premium and up to 0.85% of contract value per year. The maximum commission payable to Financial Advisors for Contract sales is 0.51% of each premium and up to 0.51% of contract value per year. The maximum amount of compensation that may be paid to District Annuity Specialists is 0.18% of each premium.

Financial Advisors and their branch managers are also eligible for various cash benefits, such as bonuses, insurance benefits and financing arrangements, and non-cash compensation items. Non-cash items include conferences, seminars, and trips (including travel, lodging, and meals in connection therewith), entertainment, merchandise, and other similar items. In addition, Financial Advisors who meet certain productivity, persistency, and length of service standards and/or their branch managers may be eligible for additional compensation from Distributor. District Annuity Specialists who meet certain productivity standards may also be eligible for additional compensation from Merrill Lynch Life Agency Inc. Sales of the Contracts may help Financial Advisors, their branch managers, and District Annuity Specialists qualify for such benefits. Distributor’s Financial Advisors and their branch managers may receive other payments from Distributor for services that do not directly involve the sale of the Contracts, including payments made for the recruitment and training of personnel, production of promotional literature, and similar services.

The Distributor does not currently sell the Contracts through other broker-dealers (“selling firms”). However, the Distributor may enter into selling agreements with selling firms in the future. Selling firms may be compensated on a different basis than Merrill Lynch Life Agency Inc. and the Financial Advisors; however, commissions paid to selling firms and their sales representatives will not exceed those described above.

Commissions and other incentives or payments described above are not charged directly to Contract owners or the Account. We intend to recoup commissions and other sales expenses through fees and charges deducted under the Contract.

STATE REGULATION

We are subject to the laws of the State of New York and to the regulations of the New York Insurance Department. We are also subject to the insurance laws and regulations of all jurisdictions in which we’re licensed to do business.

We file an annual statement with the insurance departments of jurisdictions where we do business. The statement discloses our operations for the preceding year and our financial condition as of the end of that year. Our books and accounts are subject to insurance department review at all times. The New York Insurance Department, in conjunction with the National Association of Insurance Commissioners, conducts a full examination of our operations periodically.

LEGAL PROCEEDINGS

There are no legal proceedings involving the Account. We and MLPF&S are engaged in various kinds of routine litigation that, in our judgment, are not material to our total assets.

EXPERTS

The financial statements of the Account as of December 31, 2003 and 2002, and for each of the two years in the period ended December 31, 2003, and our financial statements as of December 31, 2003 and 2002 and for each of the three years in the period ended December 31,

45

2003, included in the Statement of Additional Information and incorporated by reference in this prospectus have been audited by Deloitte & Touche LLP, independent auditors, as stated in their reports, which are included in the Statement of Additional Information and incorporated by reference herein, and have been so included and incorporated in reliance upon the reports of such firm given upon their authority as experts in accounting and auditing. Their principal business address is Two World Financial Center, New York, New York 10281-1414.

LEGAL MATTERS

Our organization, our authority to issue the Contract, and the validity of the form of the Contract have been passed upon by Barry G. Skolnick, our General Counsel. Sutherland Asbill & Brennan LLP of Washington, D.C. has provided advice on certain matters relating to Federal securities laws.

REGISTRATION STATEMENTS

Registration Statements that relate to the Contract and its investment options have been filed with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Company Act of 1940. This Prospectus does not contain all of the information in the registration statements. You can obtain the omitted information from the Securities and Exchange Commission’s principal office in Washington, D.C., upon payment of a prescribed fee.

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ACCUMULATION UNIT VALUES+

(CONDENSED FINANCIAL INFORMATION)

	BASIC VALUE V.I.						DOMESTIC MONEY MARKET V.I.
	1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01		1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01
(1) Accumulation unit value at beginning of period	$	9.08	$	11.21	$	10.93	$	10.56	$	10.57	$	10.34
(2) Accumulation value at end of period	$	11.90	$	9.08	$	11.21	$	10.47	$	10.56	$	10.57
(3) Number of accumulation units outstanding at end of period		476,411.1		476,578.4		321,734.4		525,927.5		904,823.2		1,426,508.4
	FUNDAMENTAL GROWTH V.I.						GOVERNMENT BOND V.I.
	1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01		1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01
(1) Accumulation unit value at beginning of period	$	5.27	$	7.38	$	9.16
(2) Accumulation value at end of period	$	6.64	$	5.27	$	7.38
(3) Number of accumulation units outstanding at end of period		439,864.4		1,558,262.1		880,283.2

	CORE BOND V.I.				SMALL CAP VALUE V.I.
	1/1/03 to 12/31/03		7/1/02* to 12/31/02		1/1/03 to 12/31/03		7/1/02* to 12/31/02
(1) Accumulation unit value at beginning of period	$	10.50	$	10.00	$	8.57	$	10.00
(2) Accumulation value at end of period	$	10.83	$	10.50	$	12.06	$	8.57
(3) Number of accumulation units outstanding at end of period		533,495.3		11,962.7		8,729.5		23,513.6

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	ROSZEL/DELAWARE TREND***		ROSZEL/JP MORGAN SMALL CAP GEROWTH				ROSZEL/LORD ABBETT AFFILIATED		ROSZEL/LORD ABBETT BOND DEBENTURE
	5/1/03 to 12/31/03		1/1/03 to 12/31/03		7/1/02* to 12/31/02		5/1/03 to 12/31/03		1/1/03 to 12/31/03		7/1/02* to 12/31/02
(1) Accumulation unit value at beginning of period	$	10.00	$	8.43	$	10.00	$	10.00	$	10.49	$	10.00
(2) Accumulation value at end of period	$	12.20	$	11.38	$	8.43	$	11.98	$	12.08	$	10.49
(3) Number of accumulation units outstanding at end of period		15,243.2		5,846.7		5,275.8		197,706.1		62,854.9		7,109.9

	ROSZEL/LORD ABBETT MID CAP VALUE				ROSZEL/PIMCO CCM CAPITAL APPRECIATION****		ROSZEL/PIMCO SMALL CAP VALUE
	1/1/03 to 12/31/03		7/1/02* to 12/31/02		5/1/03 to 12/31/03		1/1/03 to 12/31/03		7/1/02* to 12/31/02
(1) Accumulation unit value at beginning of period	$	8.96	$	10.00	$	10.00	$	9.32	$	10.00
(2) Accumulation value at end of period	$	11.00	$	8.96	$	11.71	$	12.21	$	9.32
(3) Number of accumulation units outstanding at end of period		239,134.1		381,459.5		33,476.8		181,068.6		392,858.1

+ ML Life Insurance Company of New York commenced sales of Retirement Power on January 19, 2001. Subaccount names reflected in this Accumulation Unit Values Table are the currently effective names. Each subaccount may have operated under different names in the past.

* Available for allocations of premiums or contract value effective following the close of business.

** Effective following the close of business on November 21, 2003, the Mercury International Value V.I. Fund was merged with and into the Merrill Lynch International Value V.I. Fund of the Merrill Lynch Variable Series Funds.

*** Effective following the close of business on November 21, 2003, the Roszel/Delaware Trend Portfolio of the MLIG Variable Insurance Trust was substituted for the Delaware VIP Trend Portfolio of the Delaware VIP Trust. The Delaware VIP Trend Portfolio is no longer available under the Contract.

**** Effective following the close of business on November 21, 2003, the Roszel/Pimco CCM Capital Appreciation Portfolio of the MLIG Variable Insurance Trust was substituted for the MFS(R) Investors Trust Series of the MFS(R) Variable Insurance Trust(SM). The MFS(R) Investors Trust Series is no longer available under the Contract.

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	ROSZEL/SELIGMANMID CAP GROWTH				AIM VI INTERNATIONAL GROWTH
	1/1/03 to 12/31/03		7/1/02* to 12/31/02		1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01
(1) Accumulation unit value at beginning of period	$	9.11	$	10.00	$	4.74	$	5.71	$	7.59
(2) Accumulation value at end of period	$	11.95	$	9.11	$	6.02	$	4.74	$	5.71
(3) Number of accumulation units outstanding at end of period		11,373.4		4,044.2		94,804.2		105,644.1		641,243.2

	AIM VI PREMIER EQUITY						ALLIANCEBERNSTEIN GROWTH AND INCOME
	1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01		1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01
(1) Accumulation unit value at beginning of period	$	4.59	$	6.69	$	7.78	$	8.18	$	10.66	$	10.79
(2) Accumulation value at end of period	$	5.66	$	4.59	$	6.69	$	10.66	$	8.18	$	10.66
(3) Number of accumulation units outstanding at end of period		92,326.3		90,938.8		85,834.1		272,228.9		382,580.6		460,234.8
	ALLIANCEBERNSTEIN PREMIER GROWTH						DAVIS VALUE
	1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01		1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01
(1) Accumulation unit value at beginning of period	$	4.29	$	6.29	$	7.71	$	7.05	$	8.56	$	9.70
(2) Accumulation value at end of period	$	5.22	$	4.29	$	6.29	$	9.01	$	7.05	$	8.56
(3) Number of accumulation units outstanding at end of period		256,745.6		280,253.0		245,940.6		641,584.2		390,854.2		318,249.7

	DELAWARE VIP TREND SERIES***
	1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01
(1) Accumulation unit value at beginning of period	$	5.33	$	6.77	$	8.12
(2) Accumulation value at end of period		***	$	5.33	$	6.77
(3) Number of accumulation units outstanding at end of period		0.0		67,163.1		63,386.5

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	MERCURY INTERNATIONAL VALUE V.I.**						MFS® EMERING GROWTH
	1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01		1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01
(1) Accumulation unit value at beginning of period	$	7.78	$	8.94	$	10.73	$	3.28	$	5.03	$	7.68
(2) Accumulation value at end of period		**	$	7.78	$	8.94	$	4.20	$	3.28	$	5.03
(3) Number of accumulation units outstanding at end of period		0.0		109,787.3		207,922.7		230,303.0		235,285.6		212,584.0

	MFS ® INVESTORS TRUST****
	1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01
(1) Accumulation unit value at beginning of period	$	6.20	$	7.98	$	9.64
(2) Accumulation value at end of period		****	$	6.20	$	7.98
(3) Number of accumulation units outstanding at end of period		0.0		139,309.9		131,706.2

	PIMCO TOTAL RETURN						SELGIMAN SMALL-CAP VALUE
	1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01		1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01
(1) Accumulation unit value at beginning of period	$	12.27	$	11.43	$	10.72	$	12.29	$	14.75	$	12.14
(2) Accumulation value at end of period	$	12.69	$	12.27	$	11.43	$	18.14	$	12.29	$	14.75
(3) Number of accumulation units outstanding at end of period		1,256,054.4		735,100.5		929,148.1		94,968.0		163,270.3		379,843.3

	VAN KAMPEN EMERGING GROWTH
	1/1/03 to 12/31/03		1/1/02 to 12/31/02		1/1/01 to 12/31/01
(1) Accumulation unit value at beginning of period	$	3.47	$	5.22	$	7.74
(2) Accumulation value at end of period	$	4.35	$	3.47	$	5.22
(3) Number of accumulation units outstanding at end of period		99,651.8		135,559.6		120,539.7

* Available for allocations of premiums or contract value effective following the close of business.

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** Effective following the close of business on November 21, 2003, the Mercury International Value V.I. Fund was merged with and into the Merrill Lynch International Value V.I. Fund of the Merrill Lynch Variable Series Funds.

*** Effective following the close of business on November 21, 2003, the Roszel/Delaware Trend Portfolio of the MLIG Variable Insurance Trust was substituted for the Delaware VIP Trend Portfolio of the Delaware VIP Trust. The Delaware VIP Trend Portfolio is no longer available under the Contract.

**** Effective following the close of business on November 21, 2003, the Roszel/Pimco CCM Capital Appreciation Portfolio of the MLIG Variable Insurance Trust was substituted for the MFS(R) Investors Trust Series of the MFS(R) Variable Insurance
Trust(SM). The MFS(R) Investors Trust Series is no longer available under the Contract.

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TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION

The contents of the Statement of Additional Information for the Contract include the following:

OTHER INFORMATION

Selling the Contract

Financial Statements

Administrative Services Arrangements

CALCULATION OF YIELDS AND TOTAL RETURNS

Money Market Yield

Other Subaccount Yields

Total Returns

FINANCIAL STATEMENTS OF ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A*

FINANCIAL STATEMENTS OF ML LIFE INSURANCE COMPANY OF NEW YORK*

* Not included in re-filed Statement of Additional Information dated May 1, 2004.

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APPENDIX A

EXAMPLE: Assume that you are under age 80 at issue. You pay an initial premium of $100,000 on June 1, 2004 and a subsequent premium of $10,000 on December 1, 2005. You also make a withdrawal of $50,000 on January 1, 2006. Your death benefit, based on HYPOTHETICAL Contract values and transactions, and resulting hypothetical maximum anniversary values (“MAV”), are illustrated below. This example assumes hypothetical positive and negative investment performance of the Account, as indicated, to demonstrate the calculation of the death benefit value. There is, of course, no assurance that the Account will experience positive investment performance. The example does not reflect the deduction of fees and charges. FOR A DETAILED EXPLANATION OF HOW WE CALCULATE THE DEATH BENEFIT, SEE “DEATH BENEFIT.”

						(A)		(B)
		TRANSACTIONS				PREMS LESS		MAX
DATE		PREM.		WITHDR.		ADJ. WITHDRAWALS		ANNIV. VA (MAV)
06/01/04	THE CONTRACT IS ISSUED MAV is $0 until first contract anniversary	$	100,000			$	100,000	$
06/01/05	FIRST CONTRACT ANNIVERSARY Assume contract value increased by $10,000 due to positive investment performance Anniversary value for 6/1/2005 = Contract value on 6/1/2005					$	100,000	$	110,000
12/01/05	OWNER TAKES A $50,000 WITHDRAWAL Assume contract value decreased by $6,000 due to negative investment performance Anniversary value for 6/1/2005 = Contract value on 6/1/2005 + premiums added since that anniversary = $110,000 + $10,000 = $120,000	$	10,000			$	110,000	$	120,000
01/01/06	OWNER TAKES A $50,000 WITHDRAWAL Assume contract value decreased by $14,000 due to negative investment performance Anniversary value for 6/1/2005 = Contract value on 6/1/2005 + premiums added – adjusted withdrawals since that anniversary = $110,000 + $10,000 - $6,000 = $60,000 Adjusted withdrawal = withdrawal X maximum (MAV, prems – adj. withdrs.) Contract value = $50,000 X maximum (120,000, 110,000)/100,000 = $50,000 X 120,000 / 100,000 = $60,000 (Note: all values are determined immediately prior to the withdrawal)			$	50,000	$	50,000	$	60,000

53

06/01/06	SECOND CONTRACT ANNIVERSARY Assume contract value increased by $5,000 due to positive investment performance Anniversary value for 6/1/2005 = $60,000 Anniversary value for 6/1/2006 = contract value on 6/1/2006 = $55,000 MAV = greatest of anniversary value = maximum ($60,000, $55,000) = $60,000	$	50,000	$	60,000
06/01/07	THIRD CONTRACT ANNIVERSARY Assume contract value increased by $10,000 due to positive investment performance Anniversary value for 6/1/2005 = $60,000 Anniversary value for 6/1/2006 = contract value on 6/1/2006 = $65,000 MAV = greatest of anniversary value = maximum ($60,000, $55,000, $65,000) = $65,000	$	50,000	$	65,000

DATE	DEATH BENEFIT
06/01/04	$100,000 (maximum of (A), (B), (C))
06/01/05	$110,000 (maximum of (A), (B), (C))
12/01/05	$120,000 (maximum of (A), (B), (C))
01/01/06	$ 60,000 (maximum of (A), (B), (C))
06/01/06	$ 60,000 (maximum of (A), (B), (C))
06/01/07	$ 65,000 (maximum of (A), (B), (C))

54

MERRILL LYNCH RETIREMENT POWER

Issued by

TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY*

ML of New York Variable Annuity Separate Account A

Supplement Dated July 1, 2014

to the

Statement of Additional Information dated May 1, 2004, as Revised on May 19, 2004

The following hereby amends and supplements your Statement of Additional Information:

* Effective on or about July 1, 2014, Transamerica Advisors Life Insurance Company of New York (“TALICNY”) merged with and into its affiliate Transamerica Financial Life Insurance Company (“TFLIC”). Before the merger, the Merrill Lynch Consults Annuity^® contracts (“Contracts”) were issued by TALICNY. Upon consummation of the Merger, TALICNY’s corporate existence ceased by operation of law, and TFLIC became responsible for all liabilities and obligations of TALICNY, including those created under the Contracts.

The following updates the Selling the Contract section of the Statement of Additional Information:

The Contracts are no longer sold to new purchasers.

The following hereby replaces the Financial Statements section of the Statement of Additional Information:

Financial Statements

The statutory basis financial statements and schedules of Transamerica Financial Life Insurance Company included in this Statement of Additional Information should be distinguished from the financial statements of the Account and should be considered only as bearing upon the ability of Transamerica Financial Life Insurance Company to meet any obligations it may have under the Contract. They should not be considered as bearing on the investment performance of the assets held in the Account.

FINANCIAL STATEMENTS

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Years Ended December 31, 2013 and 2012

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Financial Statements

Years Ended December 31, 2013 and 2012

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	4
Notes to Financial Statements	12

The Board of Directors and Contract Owners

Of ML of New York Variable Annuity Separate Account A

Transamerica Advisors Life Insurance Company of New York

We have audited the accompanying statements of assets and liabilities of the subaccounts of Transamerica Advisors Life Insurance Company of New York ML of New York Variable Annuity Separate Account A (the Separate Account), comprised of subaccounts as listed in the accompanying statements of assets and liabilities, as of December 31, 2013, and the related statements of operations and changes in net assets for the periods indicated thereon. These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Separate Account’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Separate Account’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2013 by correspondence with the fund companies or their transfer agents. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the respective subaccounts of Transamerica Advisors Life Insurance Company of New York ML of New York Variable Annuity Separate Account A, at December 31, 2013, the results of their operations and changes in their net assets for the periods indicated thereon, in conformity with U.S. generally accepted accounting principles.

/s/ Ernst & Young LLP

Des Moines, Iowa

April 21, 2014

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Statements of Assets and Liabilities

December 31, 2013

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
AllianceBernstein Global Thematic Growth Class A Shares		87,882.537	$	1,419,794	$	1,823,563	$	—		$	1,823,563		213,761	$	8.530839	$	8.530839
AllianceBernstein Growth and Income Class A Shares		30,885.057		509,461		858,605		(1	)		858,604		47,856		17.941045		17.947360
AllianceBernstein International Value Class A Shares		7,224.827		103,181		108,300		—			108,300		15,040		7.091406		7.287349
AllianceBernstein Large Cap Growth Class A Shares		175,034.434		4,060,502		7,487,973		—			7,487,973		325,768		8.948703		24.794156
AllianceBernstein Small/Mid Cap Value Class A Shares		21,143.678		309,583		483,979		1			483,980		22,864		20.914909		21.700182
AllianceBernstein Value Class A Shares		22,289.370		249,061		316,955		—			316,955		22,209		14.192429		14.725687
American Century VP International Class I Shares		252,585.515		1,970,845		2,712,768		34			2,712,802		189,463		14.318349		14.318349
American Century VP Ultra® Class I Shares		26,798.867		222,793		394,479		—			394,479		24,328		15.917751		16.908731
American Funds - Asset Allocation Class 2 Shares		34,308.566		566,941		766,110		(6	)		766,104		44,788		17.014489		17.653525
American Funds - Bond Class 2 Shares		47,142.663		509,611		500,184		(1	)		500,183		42,704		11.535294		11.968561
American Funds - Growth Class 2 Shares		25,742.602		1,081,020		2,006,378		—			2,006,378		107,770		18.345671		19.034704
American Funds - Growth-Income Class 2 Shares		26,648.474		963,972		1,343,083		(1	)		1,343,082		80,841		16.422054		17.038955
American Funds - International Class 2 Shares		248,767.730		4,179,101		5,261,437		4			5,261,441		286,040		18.139225		18.820574
BlackRock Basic Value V.I. Class I Shares		1,199,342.767		15,576,997		20,916,538		1			20,916,539		491,666		17.179249		53.983859
BlackRock Capital Appreciation V.I. Class I Shares		1,111,832.893		8,221,307		10,895,962		(8	)		10,895,954		775,456		11.168738		17.854249
BlackRock Equity Dividend V.I. Class I Shares		160,336.171		1,522,344		1,728,424		—			1,728,424		41,016		42.140448		42.140448
BlackRock Global Allocation V.I. Class I Shares		2,042,893.334		30,882,241		35,975,352		5			35,975,357		1,043,722		18.591238		38.913743
BlackRock Global Opportunities V.I. Class I Shares		122,680.865		1,350,811		2,205,802		—			2,205,802		122,023		18.076958		18.076958
BlackRock Global Opportunities V.I. Class III Shares		290.197		3,860		5,203		1			5,204		498		10.331294		10.567091
BlackRock High Yield V.I. Class I Shares		1,072,985.862		7,302,884		8,229,802		39,153			8,268,955		284,136		17.069032		36.367746
BlackRock International V.I. Class I Shares		839,943.848		7,410,239		9,130,190		2			9,130,192		472,983		15.233221		20.471336
BlackRock Large Cap Core V.I. Class I Shares		534,229.520		15,205,032		18,056,958		—			18,056,958		443,913		17.212271		45.246146
BlackRock Large Cap Growth V.I. Class I Shares		366,401.560		3,597,487		5,210,230		1			5,210,231		351,582		14.770760		17.680386
BlackRock Large Cap Value V.I. Class I Shares		455,117.170		3,820,424		6,016,649		3			6,016,652		306,879		16.233975		19.940509
BlackRock Managed Volatility V.I. Class I Shares		189,833.058		2,218,433		2,735,494		67			2,735,561		106,639		25.652631		25.652631
BlackRock Money Market V.I. Class I Shares		13,283,573.810		13,283,574		13,283,574		(45	)		13,283,529		993,795		9.918519		13.948571
BlackRock S&P 500 Index V.I. Class I Shares		719,035.494		10,716,442		13,970,860		39			13,970,899		585,164		12.244713		25.857814
BlackRock Total Return V.I. Class I Shares		946,831.192		10,819,795		10,898,027		26,422			10,924,449		466,453		12.366607		24.433394
BlackRock U.S. Government Bond V.I. Class I Shares		883,698.599		9,229,124		8,872,334		15,078			8,887,412		498,152		11.731681		20.211177
BlackRock Value Opportunities V.I. Class I Shares		497,317.500		7,984,393		13,666,285		1			13,666,286		234,857		18.382282		60.936393
Columbia - Select Smaller-Cap Value Class 1 Shares		55,601.666		670,206		1,027,519		(2	)		1,027,517		69,741		14.728930		14.745415
Davis Value		448,857.340		4,947,750		6,050,597		54			6,050,651		381,349		14.506845		18.321455
Dreyfus VIF Appreciation Service Shares		21,420.594		800,217		1,021,548		—			1,021,548		58,863		17.144268		17.788584
Eaton Vance VT Floating-Rate Income		83,716.630		788,185		789,448		—			789,448		61,478		12.771768		13.251801
Eaton Vance VT Large-Cap Value		191,547.123		1,735,834		2,258,341		(7	)		2,258,334		188,717		11.848101		12.171006
Federated Kaufmann II Primary Shares		116,426.121		1,518,852		2,237,710		2			2,237,712		115,721		18.899143		20.007695
Federated Managed Tail Risk II Primary Shares		38,787.397		231,981		273,839		1			273,840		20,333		13.223355		13.887870
Franklin Templeton Foreign Securities Class 2 Shares		38,299.991		501,417		660,292		11			660,303		37,233		17.504210		18.162212
Franklin Templeton Growth Securities Class 2 Shares		15,756.670		191,127		239,974		1			239,975		15,156		15.659335		16.247553
Invesco V.I. American Franchise Series I Shares		38,443.602		1,425,097		1,946,400		7			1,946,407		148,263		7.822033		16.055682
Invesco V.I. Comstock Series I Shares		604,693.145		7,500,978		10,733,303		4			10,733,307		604,173		17.075188		18.181374
Invesco V.I. Core Equity Series I Shares		114,539.775		2,873,248		4,401,764		55			4,401,819		279,317		15.469104		15.761794

See accompanying notes.

2

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Statements of Assets and Liabilities

December 31, 2013

Subaccount	Number of Shares		Cost		Assets at Market Value		Due (to)/from General Account			Net Assets		Units Outstanding		Range of Unit Values
Invesco V.I. International Growth Series I Shares		29,083.503	$	833,089	$	1,027,229	$	3		$	1,027,232		69,561	$	12.891372	$	23.138580
Invesco V.I. Mid Cap Core Equity Series I Shares		18,048.896		216,321		273,080		—			273,080		15,611		17.311813		17.962060
Invesco V.I. Value Opportunities Series I Shares		12,388.411		67,323		115,956		(1	)		115,955		8,558		13.549929		14.058888
Janus Aspen - Enterprise Service Shares		856.055		33,715		48,624		(4	)		48,620		2,945		16.346441		16.798045
Janus Aspen - Forty Service Shares		3,066.056		98,169		160,661		(9	)		160,652		9,951		15.949091		16.389617
MFS® Growth Initial Class		169,090.965		3,673,334		6,606,384		(7	)		6,606,377		375,204		9.197938		26.744172
Oppenheimer Capital Appreciation Service Shares		2,833.480		144,322		162,557		(1	)		162,556		10,732		15.014723		15.578783
Oppenheimer Main Street Small Cap Service Shares		5,790.570		87,288		159,414		1			159,415		7,527		20.751589		21.530798
Oppenheimer Main Street® Service Shares		6,568.688		161,688		203,564		—			203,564		12,206		16.553675		17.175475
PIMCO CommodityRealReturn® Strategy Administrative Class		166,955.770		1,309,651		998,396		5			998,401		100,522		9.804737		10.173266
PIMCO Low Duration Administrative Class		349,444.046		3,688,127		3,707,601		3			3,707,604		304,673		12.072596		12.405874
PIMCO Real Return Administrative Class		210,223.874		2,900,181		2,648,821		(7	)		2,648,814		199,175		13.164691		13.659320
PIMCO Total Return Administrative Class		2,307,420.046		25,750,519		25,335,472		72			25,335,544		1,551,303		14.491676		18.908856
Pioneer Emerging Markets VCT Class II Shares		7,766.961		221,850		192,077		—			192,077		17,779		10.679797		11.018932
Pioneer Fund VCT Class II Shares		746.766		15,157		19,625		(7	)		19,618		1,205		16.172184		16.779712
Pioneer High Yield VCT Class II Shares		28,156.078		284,620		293,949		20			293,969		18,173		15.912548		16.510394
Pioneer Real Estate Shares VCT Class II Shares		6,013.204		113,628		112,988		—			112,988		8,898		12.678811		12.976988
TA AllianceBernstein Dynamic Allocation Service Class		—		—		—		—			—		—		10.244689		10.485415
TA Morgan Stanley Mid-Cap Growth Service Class		44,025.688		1,233,666		1,635,995		(2	)		1,635,993		111,666		14.610285		14.727641
TA Systematic Small/Mid Cap Value Service Class		116,512.797		2,267,991		2,715,913		—			2,715,913		168,556		15.989737		16.365540
TA WMC Diversified Growth Service Class		84,658.920		1,943,121		2,662,523		2			2,662,525		215,289		12.268528		12.556853
Wanger International		61,142.573		2,040,003		2,112,476		—			2,112,476		158,927		13.169419		13.533070
Wanger USA		19,690.913		636,174		809,887		(4	)		809,883		39,185		20.389370		21.155644

See accompanying notes.

3

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Statements of Operations and Change in Net Assets

Year Ended December 31, 2012

			Investment Income:		Investment Expense:		Increase (Decrease) in Net Assets from Operations:
Subaccount	Net Assets as of January 1, 2012:		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			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, 2012
AllianceBernstein Global Thematic Growth Class A Shares	$	1,600,700	$	—	$	21,205	$	(21,205	)	$	—	$	(64,394	)	$	(64,394	)	$	267,320	$	202,926	$	181,721	$	(281,426	)	$	(99,705	)	$	1,500,995
AllianceBernstein Growth and Income Class A Shares		725,043		12,042		12,175		(133	)		—		22,573			22,573			88,785		111,358		111,225		(62,280	)		48,945			773,988
AllianceBernstein International Value Class A Shares		80,377		1,435		1,213		222			—		(1,854	)		(1,854	)		12,123		10,269		10,491		1,156			11,647			92,024
AllianceBernstein Large Cap Growth Class A Shares		6,796,083		20,204		94,601		(74,397	)		—		137,614			137,614			941,940		1,079,554		1,005,157		(1,465,351	)		(460,194	)		6,335,889
AllianceBernstein Small/Mid Cap Value Class A Shares		627,536		3,480		8,500		(5,020	)		20,281		43,836			64,117			26,135		90,252		85,232		(331,890	)		(246,658	)		380,878
AllianceBernstein Value Class A Shares		228,662		4,881		3,882		999			—		(12,659	)		(12,659	)		42,963		30,304		31,303		(10,832	)		20,471			249,133
American Century VP International Class I Shares		2,884,459		25,566		38,908		(13,342	)		—		81,941			81,941			438,092		520,033		506,691		(579,353	)		(72,662	)		2,811,797
American Century VP Ultra® Class I Shares		287,961		—		4,525		(4,525	)		—		16,224			16,224			23,918		40,142		35,617		(5,384	)		30,233			318,194
American Funds - Asset Allocation Class 2 Shares		617,716		12,543		11,140		1,403			—		(12,772	)		(12,772	)		101,299		88,527		89,930		(26,510	)		63,420			681,136
American Funds - Bond Class 2 Shares		843,176		17,474		13,007		4,467			—		20,494			20,494			5,269		25,763		30,230		(195,102	)		(164,872	)		678,304
American Funds - Growth Class 2 Shares		1,634,433		12,800		27,336		(14,536	)		—		152,005			152,005			114,761		266,766		252,230		(289,706	)		(37,476	)		1,596,957
American Funds - Growth-Income Class 2 Shares		966,668		14,851		16,094		(1,243	)		—		(18,491	)		(18,491	)		166,036		147,545		146,302		(195,542	)		(49,240	)		917,428
American Funds - International Class 2 Shares		4,736,309		62,949		75,429		(12,480	)		—		202,410			202,410			529,569		731,979		719,499		(1,158,683	)		(439,184	)		4,297,125
BlackRock Basic Value V.I. Class I Shares		18,512,536		315,569		258,227		57,342			—		(585,601	)		(585,601	)		2,722,269		2,136,668		2,194,010		(3,143,310	)		(949,300	)		17,563,236
BlackRock Capital Appreciation V.I. Class I Shares		13,714,165		93,496		192,833		(99,337	)		150,764		1,192,743			1,343,507			400,593		1,744,100		1,644,763		(3,163,249	)		(1,518,486	)		12,195,679
BlackRock Equity Dividend V.I. Class I Shares		1,526,116		33,913		20,493		13,420			1,253		11,621			12,874			128,191		141,065		154,485		(153,988	)		497			1,526,613
BlackRock Global Allocation V.I. Class I Shares		36,644,072		540,225		502,584		37,641			104,684		1,085,520			1,190,204			1,862,894		3,053,098		3,090,739		(4,072,255	)		(981,516	)		35,662,556
BlackRock Global Opportunities V.I. Class I Shares		2,061,167		21,246		28,001		(6,755	)		—		123,169			123,169			137,484		260,653		253,898		(328,489	)		(74,591	)		1,986,576
BlackRock Global Opportunities V.I. Class III Shares		6,335		34		89		(55	)		—		20			20			733		753		698		(2,946	)		(2,248	)		4,087
BlackRock High Yield V.I. Class I Shares		7,991,488		515,952		108,270		407,682			—		(97,082	)		(97,082	)		720,292		623,210		1,030,892		(1,383,635	)		(352,743	)		7,638,745
BlackRock International V.I. Class I Shares		9,062,540		149,474		122,996		26,478			—		(921,757	)		(921,757	)		1,993,294		1,071,537		1,098,015		(1,875,170	)		(777,155	)		8,285,385

See Accompanying Notes.

⁽¹⁾  See Footnote 1

4

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Statements of Operations and Change in Net Assets

Year Ended December 31, 2012

			Investment Income:		Investment Expense:		Increase (Decrease) in Net Assets from Operations:
Subaccount	Net Assets as of January 1, 2012:		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			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, 2012
BlackRock Large Cap Core V.I. Class I Shares	$	15,470,438	$	229,260	$	216,696	$	12,564		$	—	$	(453,929	)	$	(453,929	)	$	2,117,503		$	1,663,574		$	1,676,138		$	(1,392,040	)	$	284,098		$	15,754,536
BlackRock Large Cap Growth V.I. Class I Shares		5,025,154		67,670		68,995		(1,325	)		350,139		65,767			415,906			260,498			676,404			675,079			(911,887	)		(236,808	)		4,788,346
BlackRock Large Cap Value V.I. Class I Shares		5,938,377		82,931		79,008		3,923			—		363,093			363,093			304,975			668,068			671,991			(961,105	)		(289,114	)		5,649,263
BlackRock Managed Volatility V.I. Class I Shares		2,667,796		37,599		36,651		948			—		24,665			24,665			194,048			218,713			219,661			(221,034	)		(1,373	)		2,666,423
BlackRock Money Market V.I. Class I Shares		14,043,751		4		173,490		(173,486	)		418		—			418			—			418			(173,068	)		(2,896,395	)		(3,069,463	)		10,974,288
BlackRock S&P 500 Index V.I. Class I Shares		11,273,825		212,399		161,633		50,766			249,386		385,422			634,808			844,171			1,478,979			1,529,745			(1,412,816	)		116,929			11,390,754
BlackRock Total Return V.I. Class I Shares		13,375,318		451,656		176,289		275,367			—		(55,647	)		(55,647	)		629,200			573,553			848,920			(1,770,071	)		(921,151	)		12,454,167
BlackRock U.S. Government Bond V.I. Class I Shares		13,048,787		288,437		166,181		122,256			42,067		165,727			207,794			(216,132	)		(8,338	)		113,918			(2,097,042	)		(1,983,124	)		11,065,663
BlackRock Value Opportunities V.I. Class I Shares		11,333,705		53,214		156,911		(103,697	)		—		(421,971	)		(421,971	)		1,842,917			1,420,946			1,317,249			(1,413,556	)		(96,307	)		11,237,398
Columbia - Select Smaller-Cap Value Class 1 Shares		889,487		—		13,917		(13,917	)		—		(1,125	)		(1,125	)		152,958			151,833			137,916			(181,728	)		(43,812	)		845,675
Davis Value		5,678,634		86,133		77,412		8,721			315,804		297,216			613,020			(9,580	)		603,440			612,161			(1,038,964	)		(426,803	)		5,251,831
Dreyfus VIF Appreciation Service Shares		1,472,006		40,570		16,952		23,618			—		108,970			108,970			(10,640	)		98,330			121,948			(391,686	)		(269,738	)		1,202,268
Eaton Vance VT Floating-Rate Income		608,945		34,703		12,031		22,672			8,670		15,994			24,664			(3,544	)		21,120			43,792			174,468			218,260			827,205
Eaton Vance VT Large-Cap Value		2,826,028		30,400		34,733		(4,333	)		—		24,073			24,073			324,516			348,589			344,256			(971,131	)		(626,875	)		2,199,153
Federated Kaufmann II Primary Shares		1,816,311		—		26,120		(26,120	)		—		35,033			35,033			266,125			301,158			275,038			(298,900	)		(23,862	)		1,792,449
Federated Managed Tail Risk II Primary Shares		402,662		2,231		5,796		(3,565	)		22,712		13,583			36,295			2,025			38,320			34,755			(56,385	)		(21,630	)		381,032
Franklin Templeton Foreign Securities Class 2 Shares		639,596		20,265		9,263		11,002			—		(33,588	)		(33,588	)		126,088			92,500			103,502			(50,662	)		52,840			692,436
Franklin Templeton Growth Securities Class 2 Shares		127,424		2,013		1,589		424			—		(7,294	)		(7,294	)		27,123			19,829			20,253			(40,638	)		(20,385	)		107,039
Invesco V.I. American Franchise Series I Shares		43,468		—		15,120		(15,120	)		—		(14,456	)		(14,456	)		(34,584	)		(49,040	)		(64,160	)		1,580,714			1,516,554			1,560,022
Invesco V.I. Comstock Series I Shares		10,517,268		171,221		145,299		25,922			—		334,714			334,714			1,304,929			1,639,643			1,665,565			(2,966,728	)		(1,301,163	)		9,216,105
Invesco V.I. Core Equity Series I Shares		4,098,085		39,126		55,988		(16,862	)		—		93,961			93,961			401,009			494,970			478,108			(617,256	)		(139,148	)		3,958,937

See Accompanying Notes.

⁽¹⁾  See Footnote 1

5

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Statements of Operations and Change in Net Assets

Year Ended December 31, 2012

			Investment Income:		Investment Expense:		Increase (Decrease) in Net Assets from Operations:
Subaccount	Net Assets as of January 1, 2012:		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			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, 2012
Invesco V.I. International Growth Series I Shares	$	1,682,694	$	18,109	$	22,585	$	(4,476	)	$	—	$	(14,760	)	$	(14,760	)	$	193,837		$	179,077	$	174,601	$	(823,173	)	$	(648,572	)	$	1,034,122
Invesco V.I. Mid Cap Core Equity Series I Shares		243,009		155		3,725		(3,570	)		2,010		5,016			7,026			20,036			27,062		23,492		(22,997	)		495			243,504
Invesco V.I. Value Opportunities Series I Shares		127,646		1,283		1,562		(279	)		—		(23,122	)		(23,122	)		41,934			18,812		18,533		(57,273	)		(38,740	)		88,906
Janus Aspen - Enterprise Service Shares		44,146		—		673		(673	)		—		44			44			7,400			7,444		6,771		(159	)		6,612			50,758
Janus Aspen - Forty Service Shares		121,008		796		1,896		(1,100	)		—		1,883			1,883			25,822			27,705		26,605		(5,656	)		20,949			141,957
MFS® Growth Initial Class		6,266,614		—		92,476		(92,476	)		—		456,640			456,640			580,329			1,036,969		944,493		(1,248,133	)		(303,640	)		5,962,974
Oppenheimer Capital Appreciation Service Shares		55,249		274		862		(588	)		—		1,366			1,366			6,286			7,652		7,064		(1,257	)		5,807			61,056
Oppenheimer Main Street Small Cap Service Shares		116,859		487		1,694		(1,207	)		—		(2,766	)		(2,766	)		20,282			17,516		16,309		(20,681	)		(4,372	)		112,487
Oppenheimer Main Street® Service Shares		56,028		405		837		(432	)		—		118			118			8,723			8,841		8,409		(531	)		7,878			63,906
PIMCO CommodityRealReturn® Strategy Administrative Class		1,040,746		29,387		16,174		13,213			34,150		(18,549	)		15,601			16,590			32,191		45,404		(42,090	)		3,314			1,044,060
PIMCO Low Duration Administrative Class		1,603,650		43,270		35,506		7,764			—		5,693			5,693			76,689			82,382		90,146		1,028,588			1,118,734			2,722,384
PIMCO Real Return Administrative Class		2,813,912		35,939		49,967		(14,028	)		177,677		146,592			324,269			(88,691	)		235,578		221,550		442,023			663,573			3,477,485
PIMCO Total Return Administrative Class		30,693,700		797,710		453,162		344,548			596,784		642,805			1,239,589			797,819			2,037,408		2,381,956		(1,265,673	)		1,116,283			31,809,983
Pioneer Emerging Markets VCT Class II Shares		176,629		379		2,561		(2,182	)		5,610		(3,471	)		2,139			17,552			19,691		17,509		(7,242	)		10,267			186,896
Pioneer Fund VCT Class II Shares		14,074		189		220		(31	)		495		523			1,018			134			1,152		1,121		(91	)		1,030			15,104
Pioneer High Yield VCT Class II Shares		327,937		15,838		4,377		11,461			13,290		4,919			18,209			10,215			28,424		39,885		(137,469	)		(97,584	)		230,353
Pioneer Real Estate Shares VCT Class II Shares		55,173		1,434		988		446			—		462			462			7,362			7,824		8,270		23,071			31,341			86,514
TA AllianceBernstein Dynamic Allocation Service Class		—		—		—		—			—		—			—			—			—		—		—			—			—
TA Morgan Stanley Mid-Cap Growth Service Class		1,383,772		—		20,116		(20,116	)		67,638		24,594			92,232			34,416			126,648		106,532		(120,571	)		(14,039	)		1,369,733
TA Systematic Small/Mid Cap Value Service Class		511,651		1,405		8,451		(7,046	)		125,399		(3,067	)		122,332			(41,914	)		80,418		73,372		95,007			168,379			680,030
TA WMC Diversified Growth Service Class		3,902,427		4,106		54,751		(50,645	)		—		103,785			103,785			399,028			502,813		452,168		(949,473	)		(497,305	)		3,405,122

See Accompanying Notes.

⁽¹⁾  See Footnote 1

6

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Statements of Operations and Change in Net Assets

Year Ended December 31, 2012

			Investment Income:		Investment Expense:		Increase (Decrease) in Net Assets from Operations:
Subaccount	Net Assets as of January 1, 2012:		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			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, 2012
Wanger International	$	1,255,105	$	16,307	$	20,459	$	(4,152	)	$	121,701	$	(44,279	)	$	77,422	$	172,859	$	250,281	$	246,129	$	(152,228	)	$	93,901	$	1,349,006
Wanger USA		485,833		1,545		7,344		(5,799	)		23,262		21,732			44,994		43,927		88,921		83,122		(76,561	)		6,561		492,394

See Accompanying Notes.

⁽¹⁾  See Footnote 1

7

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Statements of Operations and Change in Net Assets

Year Ended December 31, 2013

			Investment Income:		Investment Expense:		Increase (Decrease) in Net Assets from Operations:
Subaccount	Net Assets as of January 1, 2013:		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			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, 2013
AllianceBernstein Global Thematic Growth Class A Shares	$	1,500,995	$	4,406	$	21,912	$	(17,506	)	$	—	$	14,740		$	14,740		$	326,842		$	341,582		$	324,076		$	(1,508	)	$	322,568		$	1,823,563
AllianceBernstein Growth and Income Class A Shares		773,988		12,183		14,067		(1,884	)		—		96,534			96,534			150,550			247,084			245,200			(160,584	)		84,616			858,604
AllianceBernstein International Value Class A Shares		92,024		6,180		1,410		4,770			—		(2,046	)		(2,046	)		16,547			14,501			19,271			(2,995	)		16,276			108,300
AllianceBernstein Large Cap Growth Class A Shares		6,335,889		5,050		93,524		(88,474	)		—		311,585			311,585			1,873,722			2,185,307			2,096,833			(944,749	)		1,152,084			7,487,973
AllianceBernstein Small/Mid Cap Value Class A Shares		380,878		2,628		6,600		(3,972	)		24,389		11,370			35,759			99,838			135,597			131,625			(28,523	)		103,102			483,980
AllianceBernstein Value Class A Shares		249,133		6,551		4,547		2,004			—		(5,035	)		(5,035	)		86,929			81,894			83,898			(16,076	)		67,822			316,955
American Century VP International Class I Shares		2,811,797		50,084		36,298		13,786			—		195,130			195,130			316,242			511,372			525,158			(624,153	)		(98,995	)		2,712,802
American Century VP Ultra® Class I Shares		318,194		2,077		5,165		(3,088	)		—		45,066			45,066			67,427			112,493			109,405			(33,120	)		76,285			394,479
American Funds - Asset Allocation Class 2 Shares		681,136		10,478		12,574		(2,096	)		—		7,460			7,460			134,934			142,394			140,298			(55,330	)		84,968			766,104
American Funds - Bond Class 2 Shares		678,304		9,355		9,522		(167	)		6,361		9,754			16,115			(37,695	)		(21,580	)		(21,747	)		(156,374	)		(178,121	)		500,183
American Funds - Growth Class 2 Shares		1,596,957		16,574		28,068		(11,494	)		—		99,736			99,736			340,515			440,251			428,757			(19,336	)		409,421			2,006,378
American Funds - Growth-Income Class 2 Shares		917,428		16,103		18,235		(2,132	)		—		5,238			5,238			296,176			301,414			299,282			126,372			425,654			1,343,082
American Funds - International Class 2 Shares		4,297,125		65,107		76,691		(11,584	)		—		85,213			85,213			795,525			880,738			869,154			95,162			964,316			5,261,441
BlackRock Basic Value V.I. Class I Shares		17,563,236		276,229		273,753		2,476			—		314,155			314,155			5,673,149			5,987,304			5,989,780			(2,636,477	)		3,353,303			20,916,539
BlackRock Capital Appreciation V.I. Class I Shares		12,195,679		151		161,586		(161,435	)		1,530,300		1,342,987			2,873,287			387,791			3,261,078			3,099,643			(4,399,368	)		(1,299,725	)		10,895,954
BlackRock Equity Dividend V.I. Class I Shares		1,526,613		31,849		22,258		9,591			23,955		35,727			59,682			268,291			327,973			337,564			(135,753	)		201,811			1,728,424
BlackRock Global Allocation V.I. Class I Shares		35,662,556		400,069		495,424		(95,355	)		1,297,129		1,247,309			2,544,438			2,021,243			4,565,681			4,470,326			(4,157,525	)		312,801			35,975,357
BlackRock Global Opportunities V.I. Class I Shares		1,986,576		7,116		28,103		(20,987	)		—		138,336			138,336			398,757			537,093			516,106			(296,880	)		219,226			2,205,802
BlackRock Global Opportunities V.I. Class III Shares		4,087		6		67		(61	)		—		11			11			1,178			1,189			1,128			(11	)		1,117			5,204
BlackRock High Yield V.I. Class I Shares		7,638,745		456,115		107,323		348,792			—		(2,435	)		(2,435	)		249,847			247,412			596,204			34,006			630,210			8,268,955
BlackRock International V.I. Class I Shares		8,285,385		184,205		120,598		63,607			—		(335,478	)		(335,478	)		1,971,828			1,636,350			1,699,957			(855,150	)		844,807			9,130,192

See Accompanying Notes.

⁽¹⁾  See Footnote 1

8

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Statements of Operations and Change in Net Assets

Year Ended December 31, 2013

			Investment Income:		Investment Expense:		Increase (Decrease) in Net Assets from Operations:
Subaccount	Net Assets as of January 1, 2013:		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			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, 2013
BlackRock Large Cap Core V.I. Class I Shares	$	15,754,536	$	170,696	$	230,527	$	(59,831	)	$	—	$	(235,561	)	$	(235,561	)	$	4,956,395		$	4,720,834		$	4,661,003		$	(2,358,581	)	$	2,302,422		$	18,056,958
BlackRock Large Cap Growth V.I. Class I Shares		4,788,346		32,433		66,333		(33,900	)		380,920		91,381			472,301			953,576			1,425,877			1,391,977			(970,092	)		421,885			5,210,231
BlackRock Large Cap Value V.I. Class I Shares		5,649,263		66,990		80,101		(13,111	)		401,551		635,241			1,036,792			620,146			1,656,938			1,643,827			(1,276,438	)		367,389			6,016,652
BlackRock Managed Volatility V.I. Class I Shares		2,666,423		39,331		36,380		2,951			60,353		44,752			105,105			176,804			281,909			284,860			(215,722	)		69,138			2,735,561
BlackRock Money Market V.I. Class I Shares		10,974,288		4		174,233		(174,229	)		511		—			511			—			511			(173,718	)		2,482,959			2,309,241			13,283,529
BlackRock S&P 500 Index V.I. Class I Shares		11,390,754		213,084		172,036		41,048			413,342		438,022			851,364			2,392,752			3,244,116			3,285,164			(705,019	)		2,580,145			13,970,899
BlackRock Total Return V.I. Class I Shares		12,454,167		361,158		158,107		203,051			—		(29,412	)		(29,412	)		(465,466	)		(494,878	)		(291,827	)		(1,237,891	)		(1,529,718	)		10,924,449
BlackRock U.S. Government Bond V.I. Class I Shares		11,065,663		246,306		142,178		104,128			68,609		14,336			82,945			(665,460	)		(582,515	)		(478,387	)		(1,699,864	)		(2,178,251	)		8,887,412
BlackRock Value Opportunities V.I. Class I Shares		11,237,398		64,663		169,945		(105,282	)		—		176,432			176,432			4,172,689			4,349,121			4,243,839			(1,814,951	)		2,428,888			13,666,286
Columbia - Select Smaller-Cap Value Class 1 Shares		845,675		—		14,895		(14,895	)		—		75,644			75,644			297,379			373,023			358,128			(176,286	)		181,842			1,027,517
Davis Value		5,251,831		48,342		81,057		(32,715	)		408,815		320,232			729,047			862,737			1,591,784			1,559,069			(760,249	)		798,820			6,050,651
Dreyfus VIF Appreciation Service Shares		1,202,268		20,073		15,971		4,102			2,986		149,472			152,458			27,644			180,102			184,204			(364,924	)		(180,720	)		1,021,548
Eaton Vance VT Floating-Rate Income		827,205		26,559		11,152		15,407			3,431		6,070			9,501			(7,634	)		1,867			17,274			(55,031	)		(37,757	)		789,448
Eaton Vance VT Large-Cap Value		2,199,153		19,887		31,737		(11,850	)		—		146,070			146,070			396,245			542,315			530,465			(471,284	)		59,181			2,258,334
Federated Kaufmann II Primary Shares		1,792,449		—		28,449		(28,449	)		175,384		109,742			285,126			403,304			688,430			659,981			(214,718	)		445,263			2,237,712
Federated Managed Tail Risk II Primary Shares		381,032		2,920		4,084		(1,164	)		5,969		31,992			37,961			8,989			46,950			45,786			(152,978	)		(107,192	)		273,840
Franklin Templeton Foreign Securities Class 2 Shares		692,436		14,877		9,102		5,775			—		40,639			40,639			78,157			118,796			124,571			(156,704	)		(32,133	)		660,303
Franklin Templeton Growth Securities Class 2 Shares		107,039		3,679		2,064		1,615			—		9,246			9,246			25,977			35,223			36,838			96,098			132,936			239,975
Invesco V.I. American Franchise Series I Shares		1,560,022		7,571		23,460		(15,889	)		—		32,181			32,181			553,344			585,525			569,636			(183,251	)		386,385			1,946,407
Invesco V.I. Comstock Series I Shares		9,216,105		171,196		148,652		22,544			—		824,695			824,695			2,140,909			2,965,604			2,988,148			(1,470,946	)		1,517,202			10,733,307
Invesco V.I. Core Equity Series I Shares		3,958,937		57,977		57,896		81			—		195,297			195,297			833,855			1,029,152			1,029,233			(586,351	)		442,882			4,401,819

See Accompanying Notes.

⁽¹⁾  See Footnote 1

9

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Statements of Operations and Change in Net Assets

Year Ended December 31, 2013

			Investment Income:		Investment Expense:		Increase (Decrease) in Net Assets from Operations:
Subaccount	Net Assets as of January 1, 2013:		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			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, 2013
Invesco V.I. International Growth Series I Shares	$	1,034,122	$	13,217	$	16,442	$	(3,225	)	$	—	$	36,809		$	36,809		$	138,044		$	174,853		$	171,628		$	(178,518	)	$	(6,890	)	$	1,027,232
Invesco V.I. Mid Cap Core Equity Series I Shares		243,504		2,161		4,560		(2,399	)		21,813		19,746			41,559			29,617			71,176			68,777			(39,201	)		29,576			273,080
Invesco V.I. Value Opportunities Series I Shares		88,906		1,528		1,703		(175	)		—		1,253			1,253			26,878			28,131			27,956			(907	)		27,049			115,955
Janus Aspen - Enterprise Service Shares		50,758		207		790		(583	)		—		5,040			5,040			10,390			15,430			14,847			(16,985	)		(2,138	)		48,620
Janus Aspen - Forty Service Shares		141,957		914		2,129		(1,215	)		—		8,599			8,599			32,810			41,409			40,194			(21,499	)		18,695			160,652
MFS® Growth Initial Class		5,962,974		13,934		89,399		(75,465	)		44,138		734,178			778,316			1,157,000			1,935,316			1,859,851			(1,216,448	)		643,403			6,606,377
Oppenheimer Capital Appreciation Service Shares		61,056		505		1,130		(625	)		—		14,139			14,139			10,164			24,303			23,678			77,822			101,500			162,556
Oppenheimer Main Street Small Cap Service Shares		112,487		928		1,748		(820	)		1,602		5,090			6,692			36,784			43,476			42,656			4,272			46,928			159,415
Oppenheimer Main Street® Service Shares		63,906		1,451		2,072		(621	)		—		4,288			4,288			34,108			38,396			37,775			101,883			139,658			203,564
PIMCO CommodityRealReturn® Strategy Administrative Class		1,044,060		16,060		14,487		1,573			—		(25,209	)		(25,209	)		(139,205	)		(164,414	)		(162,841	)		117,182			(45,659	)		998,401
PIMCO Low Duration Administrative Class		2,722,384		40,606		43,863		(3,257	)		—		9,490			9,490			(47,750	)		(38,260	)		(41,517	)		1,026,737			985,220			3,707,604
PIMCO Real Return Administrative Class		3,477,485		46,536		47,388		(852	)		20,498		13,187			33,685			(378,202	)		(344,517	)		(345,369	)		(483,302	)		(828,671	)		2,648,814
PIMCO Total Return Administrative Class		31,809,983		625,727		419,445		206,282			219,462		558,216			777,678			(1,975,970	)		(1,198,292	)		(992,010	)		(5,482,429	)		(6,474,439	)		25,335,544
Pioneer Emerging Markets VCT Class II Shares		186,896		1,661		2,525		(864	)		—		(1,045	)		(1,045	)		(4,712	)		(5,757	)		(6,621	)		11,802			5,181			192,077
Pioneer Fund VCT Class II Shares		15,104		179		257		(78	)		770		74			844			3,902			4,746			4,668			(154	)		4,514			19,618
Pioneer High Yield VCT Class II Shares		230,353		12,213		3,454		8,759			13,730		515			14,245			821			15,066			23,825			39,791			63,616			293,969
Pioneer Real Estate Shares VCT Class II Shares		86,514		2,498		1,826		672			5,444		2,080			7,524			(8,845	)		(1,321	)		(649	)		27,123			26,474			112,988
TA AllianceBernstein Dynamic Allocation Service Class		—		—		—		—			—		—			—			—			—			—			—			—			—
TA Morgan Stanley Mid-Cap Growth Service Class		1,369,733		8,764		21,970		(13,206	)		30,161		77,854			108,015			367,912			475,927			462,721			(196,461	)		266,260			1,635,993
TA Systematic Small/Mid Cap Value Service Class		680,030		7,522		28,355		(20,833	)		5,148		15,499			20,647			501,438			522,085			501,252			1,534,631			2,035,883			2,715,913
TA WMC Diversified Growth Service Class		3,405,122		19,569		43,986		(24,417	)		—		326,995			326,995			487,222			814,217			789,800			(1,532,397	)		(742,597	)		2,662,525

See Accompanying Notes.

⁽¹⁾  See Footnote 1

10

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Statements of Operations and Change in Net Assets

Year Ended December 31, 2013

			Investment Income:		Investment Expense:		Increase (Decrease) in Net Assets from Operations:
Subaccount	Net Assets as of January 1, 2013:		Reinvested Dividends		Mortality and Expense Risk and Administrative Charges		Net Investment Income (Loss)			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, 2013
Wanger International	$	1,349,006	$	51,141	$	26,739	$	24,402		$	132,591	$	(20,222	)	$	112,369	$	176,858	$	289,227	$	313,629	$	449,841	$	763,470	$	2,112,476
Wanger USA		492,394		837		9,763		(8,926	)		53,083		30,912			83,995		104,630		188,625		179,699		137,790		317,489		809,883

See Accompanying Notes.

⁽¹⁾  See Footnote 1

11

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

1. Organization and Summary of Significant Accounting Policies

Organization

ML of New York Variable Annuity Separate Account A (the Separate Account) is a segregated investment account of Transamerica Advisors Life Insurance Company of New York (TALICNY), an indirect wholly owned subsidiary of AEGON N.V., a holding company organized under the laws of The Netherlands.

The Separate Account is registered with the Securities and Exchange Commission as a Unit Investment Trust pursuant to provisions of the Investment Company Act of 1940. The Separate Account consists of multiple investment subaccounts. Each subaccount invests exclusively in the corresponding portfolio of a Mutual Fund. Each Mutual Fund is registered as an open-end management investment company under the Investment Company Act of 1940, as amended. Activity in these specified investment subaccounts is available to contract owners of Merrill Lynch Investor Choice Annuity^® NY, Merrill Lynch Retirement Power^® NY, Merrill Lynch Retirement Optimizer^® NY, and Merrill Lynch Retirement Plus^® NY.

In the prior year, both Service Class and Initial Class were presented together within one subaccount. For the current year presentation, Service Class and Initial Class shares have been restated and now are reflected separately.

Subaccount Investment by Mutual Fund:

Subaccount	Mutual Fund
AllianceBernstein Variable Products Series Fund, Inc.	AllianceBernstein Variable Products Series Fund, Inc.
AllianceBernstein Global Thematic Growth Class A	AllianceBernstein Global Thematic Growth Portfolio Class A
AllianceBernstein Growth and Income Class A	AllianceBernstein Growth and Income Portfolio Class A
AllianceBernstein International Value Class A	AllianceBernstein International Value Portfolio Class A
AllianceBernstein Large Cap Growth Class A	AllianceBernstein Large Cap Growth Portfolio Class A
AllianceBernstein Small/Mid Cap Value Class A	AllianceBernstein Small/Mid Cap Value Portfolio Class A
AllianceBernstein Value Class A	AllianceBernstein Value Portfolio Class A
American Century Variable Series Funds, Inc.	American Century Variable Series Funds, Inc.
American Century VP International Class I	American Century VP International Fund Class I
American Century VP Ultra® Class I	American Century VP Ultra® Fund Class I
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	American Funds - Growth-Income Fund Class 2
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	BlackRock Basic Value V.I. Fund Class I
BlackRock Capital Appreciation V.I. Class I	BlackRock Capital Appreciation V.I. Fund Class I
BlackRock Equity Dividend V.I. Class I Shares	BlackRock Equity Dividend V.I. Fund Class I Shares
BlackRock Global Allocation V.I.	BlackRock Global Allocation V.I.
BlackRock Global Opportunities V.I. Class I Shares	BlackRock Global Opportunities V.I. Fund Class I Shares
BlackRock Variable Series Funds, Inc.	BlackRock Variable Series Funds, Inc.
BlackRock Global Opportunities V.I. Class III Shares	BlackRock Global Opportunities V.I. Fund Class III Shares
BlackRock Variable Series Funds, Inc.	BlackRock Variable Series Funds, Inc.
BlackRock High Yield V.I.	BlackRock High Yield V.I.

12

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

1. Organization and Summary of Significant Accounting Policies (continued)

Subaccount Investment by Mutual Fund:

Subaccount	Mutual Fund
BlackRock Variable Series Funds, Inc.	BlackRock Variable Series Funds, Inc.
BlackRock International V.I. Class I Shares	BlackRock International V.I. Fund Class I Shares
BlackRock Large Cap Core V.I. Class I Shares	BlackRock Large Cap Core V.I. Fund Class I Shares
BlackRock Large Cap Growth V.I. Class I Shares	BlackRock Large Cap Growth V.I. Fund Class I Shares
BlackRock Large Cap Value V.I. Class I Shares	BlackRock Large Cap Value V.I. Fund Class I Shares
BlackRock Managed Volatility V.I. Class I Shares	BlackRock Managed Volatility V.I. Fund Class I Shares
BlackRock Money Market V.I.	BlackRock Money Market V.I.
BlackRock S&P 500 Index V.I. Class I Shares	BlackRock S&P 500 Index V.I. Fund Class I Shares
BlackRock Total Return V.I. Class I	BlackRock Total Return V.I. Fund Class I
BlackRock U.S. Government Bond V.I. Class I Shares	BlackRock U.S. Government Bond V.I. Fund Class I Shares
BlackRock Value Opportunities V.I. Class I Shares	BlackRock Value Opportunities V.I. Fund Class I Shares
Columbia Funds Variable Insurance Trust II	Columbia Funds Variable Insurance Trust II
Columbia - Select Smaller-Cap Value Class I	Columbia - Select Smaller-Cap Value Fund Class I
Davis Variable Account Fund, Inc.	Davis Variable Account Fund, Inc.
Davis Value	Davis Value Portfolio
Dreyfus Variable Investment Fund	Dreyfus Variable Investment Fund
Dreyfus Appreciation Service Class	Dreyfus Appreciation Portfolio Service Class
Eaton Vance Variable Trust	Eaton Vance Variable Trust
Eaton Vance VT Floating-Rate Income	Eaton Vance VT Floating-Rate Income Fund
Eaton Vance VT Large-Cap Value	Eaton Vance VT Large-Cap Value Fund
Federated Insurance Series	Federated Insurance Series
Federated Kaufmann Primary Shares	Federated Kaufmann Fund Primary Shares
Federated Managed Tail Risk Primary Shares	Federated Managed Tail Risk Fund Primary Shares
Franklin Templeton Variable Insurance Products Trust	Franklin Templeton Variable Insurance Products Trust
Franklin Templeton Foreign Securities Class 2	Franklin Templeton Foreign Securities Fund Class 2
Franklin Templeton Growth Securities Class 2	Franklin Templeton Growth Securities Fund Class 2
AIM Variable Insurance Funds- (Invesco Variable Insurance)	AIM Variable Insurance Funds- (Invesco Variable Insurance)
Invesco V.I. American Franchise Series I Shares	Invesco V.I. American Franchise Fund Series I Shares
Invesco V.I. Comstock Series I Shares	Invesco V.I. Comstock Fund Series I Shares
Invesco V.I. Core Equity Series I	Invesco V.I. Core Equity Fund Series I
Invesco V.I. International Growth Series I	Invesco V.I. International Growth Fund Series I
Invesco V.I. Mid Cap Core Equity Series I	Invesco V.I. Mid Cap Core Equity Fund Series I
Invesco V.I. Value Opportunities Series I	Invesco V.I. Value Opportunities Fund Series I
Janus Aspen Series	Janus Aspen Series
Janus Aspen - Enterprise Service Shares	Janus Aspen - Enterprise Portfolio Service Shares
Janus Aspen - Forty Service Shares	Janus Aspen - Forty Portfolio Service Shares
MFS® Variable Insurance Trust	MFS® Variable Insurance Trust
MFS® Growth Initial Class	MFS® Growth Series Initial Class
Oppenheimer Variable Account Funds	Oppenheimer Variable Account Funds
Oppenheimer Capital Appreciation Service Class	Oppenheimer Capital Appreciation Service Fund®/VA Class
Oppenheimer Main Street Service Class	Oppenheimer Main Street Service Fund®/VA Class
Oppenheimer Main Street Small Cap Service Class	Oppenheimer Main Street Small Cap Fund®/VA Service Class

13

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

1. Organization and Summary of Significant Accounting Policies (continued)

Subaccount Investment by Mutual Fund:

Subaccount	Mutual Fund
PIMCO Variable Insurance Trust	PIMCO Variable Insurance Trust
PIMCO CommodityRealReturn® Strategy Administrative Class Shares	PIMCO CommodityRealReturn® Strategy Administrative Portfolio Class Shares
PIMCO Low Duration Administrative Class	PIMCO Low Duration Administrative Portfolio Class
PIMCO Real Return Administrative Class	PIMCO Real Return Administrative Portfolio Class
PIMCO Total Return Administrative Class	PIMCO Total Return Administrative Portfolio Class
Pioneer Variable Contracts Trust	Pioneer Variable Contracts Trust
Pioneer Emerging Markets VCT Class II Shares	Pioneer Emerging Markets VCT Portfolio Class II Shares
Pioneer Fund VCT Class II Shares	Pioneer Fund VCT Portfolio Class II Shares
Pioneer High Yield VCT Class II Shares	Pioneer High Yield VCT Portfolio Class II Shares
Pioneer Real Estate Shares VCT Class II Shares	Pioneer Real Estate Shares VCT Portfolio Class II Shares
Transamerica Series Trust	Transamerica Series Trust
TA AllianceBernstein Dynamic Allocation Service Class	Transamerica AllianceBernstein Dynamic Allocation VP Service Class
TA Morgan Stanley Mid-Cap Growth Service Class	Transamerica Morgan Stanley Mid-Cap Growth VP Service Class
TA Systematic Small/Mid Cap Value Service Class	Transamerica Systematic Small/Mid Cap Value VP Service Class
TA WMC Diversified Growth Service Class	Transamerica WMC Diversified Growth VP Service Class
Wanger Advisors Trust	Wanger Advisors Trust
Wanger International	Wanger International
Wanger USA	Wanger USA

Each period reported on reflects a full twelve month period except as follows:

Subaccount	Inception Date
TA Morgan Stanley Mid-Cap Growth Service Class	December 30, 2011
Columbia - Select Smaller-Cap Value Class I	March 11, 2011

The following subaccount name changes were made effective during the fiscal year ended December 31, 2013:

Subaccount	Formerly
BlackRock Managed Volatility V.I. Class I Shares	BlackRock Balanced Captial V.I. Class I Shares
Federated Managed Tail Risk Primary Shares	Federated Capital Appreciation Primary Shares
Invesco V.I. American Franchise Series I Shares	Invesco Van Kampen V.I. American Franchise Series I Shares
Invesco V.I. Comstock Series I Shares	Invesco Van Kampen V.I. Comstock Fund Series I Shares
Invesco V.I. Value Opportunities Series I Shares	Invesco Van Kampen V.I. Value Opportunities Series I Shares
Oppenheimer Main Street Small Cap Service Class	Oppenheimer Main Street Small- & Mid-Cap Service Class

14

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

1. Organization and Summary of Significant Accounting Policies (continued)

Investments

Net purchase payments received by the Separate Account are invested in the portfolios of the Mutual Funds as selected by the contract owner. Investments are stated at the closing net asset values per share on December 31, 2013.

Realized capital gains and losses from sales of shares in the Separate Account are determined on the first-in, first-out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividend income is recorded on the ex-dividend date. Unrealized gains or losses from investments in the Mutual Funds are included in the Statements of Operations and Changes in Net Assets.

Dividend Income

Dividends received from the Mutual Fund investments are reinvested to purchase additional mutual fund shares.

Accounting Policy

The financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable annuity separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.

15

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

2. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2013 were as follows:

Subaccount	Purchases		Sales
AllianceBernstein Global Thematic Growth Class A Shares	$	20,247	$	39,260
AllianceBernstein Growth and Income Class A Shares		113,296		275,761
AllianceBernstein International Value Class A Shares		6,270		4,493
AllianceBernstein Large Cap Growth Class A Shares		57,304		1,090,521
AllianceBernstein Small/Mid Cap Value Class A Shares		27,018		35,124
AllianceBernstein Value Class A Shares		6,551		20,623
American Century VP International Class I Shares		183,570		793,971
American Century VP Ultra® Class I Shares		101,691		137,897
American Funds - Asset Allocation Class 2 Shares		10,662		68,085
American Funds - Bond Class 2 Shares		68,148		218,328
American Funds - Growth Class 2 Shares		172,021		202,851
American Funds - Growth-Income Class 2 Shares		200,319		76,079
American Funds - International Class 2 Shares		688,614		605,037
BlackRock Basic Value V.I. Class I Shares		1,200,118		3,834,129
BlackRock Capital Appreciation V.I. Class I Shares		1,826,872		4,857,376
BlackRock Equity Dividend V.I. Class I Shares		77,961		180,168
BlackRock Global Allocation V.I. Class I Shares		2,840,080		5,795,828
BlackRock Global Opportunities V.I. Class I Shares		36,738		354,618
BlackRock Global Opportunities V.I. Class III Shares		6		78
BlackRock High Yield V.I. Class I Shares		1,362,282		984,110
BlackRock International V.I. Class I Shares		783,509		1,575,042
BlackRock Large Cap Core V.I. Class I Shares		407,695		2,826,107
BlackRock Large Cap Growth V.I. Class I Shares		509,513		1,132,593
BlackRock Large Cap Value V.I. Class I Shares		578,082		1,466,077
BlackRock Managed Volatility V.I. Class I Shares		116,253		268,737
BlackRock Money Market V.I. Class I Shares		8,290,947		5,981,659
BlackRock S&P 500 Index V.I. Class I Shares		1,692,244		1,942,918
BlackRock Total Return V.I. Class I Shares		498,110		1,525,363
BlackRock U.S. Government Bond V.I. Class I Shares		859,978		2,379,799
BlackRock Value Opportunities V.I. Class I Shares		411,981		2,332,205
Columbia - Select Smaller-Cap Value Class 1 Shares		126,369		317,549
Davis Value		784,395		1,168,604
Dreyfus VIF Appreciation Service Shares		240,051		597,886
Eaton Vance VT Floating-Rate Income		319,397		355,585
Eaton Vance VT Large-Cap Value		389,315		872,448
Federated Kaufmann II Primary Shares		323,275		391,060

16

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

2. Investments (continued)

Subaccount	Purchases		Sales
Federated Managed Tail Risk II Primary Shares	$	24,500	$	172,674
Franklin Templeton Foreign Securities Class 2 Shares		43,630		194,563
Franklin Templeton Growth Securities Class 2 Shares		119,312		21,600
Invesco V.I. American Franchise Series I Shares		7,861		207,006
Invesco V.I. Comstock Series I Shares		1,610,295		3,058,699
Invesco V.I. Core Equity Series I Shares		102,546		688,872
Invesco V.I. International Growth Series I Shares		116,830		298,575
Invesco V.I. Mid Cap Core Equity Series I Shares		58,227		78,015
Invesco V.I. Value Opportunities Series I Shares		1,528		2,609
Janus Aspen - Enterprise Service Shares		208		17,775
Janus Aspen - Forty Service Shares		914		23,625
MFS® Growth Initial Class		580,778		1,828,545
Oppenheimer Capital Appreciation Service Shares		154,803		77,606
Oppenheimer Main Street Small Cap Service Shares		19,796		14,742
Oppenheimer Main Street® Service Shares		117,006		15,744
PIMCO CommodityRealReturn® Strategy Administrative Class		251,832		133,078
PIMCO Low Duration Administrative Class		1,481,792		458,314
PIMCO Real Return Administrative Class		559,072		1,022,703
PIMCO Total Return Administrative Class		2,704,807		7,761,557
Pioneer Emerging Markets VCT Class II Shares		15,547		4,607
Pioneer Fund VCT Class II Shares		949		410
Pioneer High Yield VCT Class II Shares		70,454		8,188
Pioneer Real Estate Shares VCT Class II Shares		48,716		15,476
TA AllianceBernstein Dynamic Allocation Service Class		—		—
TA Morgan Stanley Mid-Cap Growth Service Class		271,407		450,911
TA Systematic Small/Mid Cap Value Service Class		1,861,674		342,728
TA WMC Diversified Growth Service Class		223,266		1,780,080
Wanger International		820,674		213,838
Wanger USA		307,585		125,637

17

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

3. Change in Units

The change in units outstanding were as follows:

	Year Ended December 31, 2013								Year Ended December 31, 2012
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
AllianceBernstein Global Thematic Growth Class A Shares		3,676		(3,884	)		(208	)		3,951		(45,524	)		(41,573	)
AllianceBernstein Growth and Income Class A Shares		918,387		(927,838	)		(9,451	)		129,049		(133,839	)		(4,790	)
AllianceBernstein International Value Class A Shares		—		(459	)		(459	)		—		215			215
AllianceBernstein Large Cap Growth Class A Shares		387,355		(435,566	)		(48,211	)		11,192		(99,908	)		(88,716	)
AllianceBernstein Small/Mid Cap Value Class A Shares		1		(1,599	)		(1,598	)		488		(23,342	)		(22,854	)
AllianceBernstein Value Class A Shares		—		(1,302	)		(1,302	)		699		(1,753	)		(1,054	)
American Century VP International Class I Shares		11,938		(59,640	)		(47,702	)		847		(54,497	)		(53,650	)
American Century VP Ultra® Class I Shares		35,617		(37,833	)		(2,216	)		5,340		(5,779	)		(439	)
American Funds - Asset Allocation Class 2 Shares		1		(3,582	)		(3,581	)		—		(1,401	)		(1,401	)
American Funds - Bond Class 2 Shares		191		(13,393	)		(13,202	)		137		(16,008	)		(15,871	)
American Funds - Growth Class 2 Shares		2,022		(3,904	)		(1,882	)		299		(20,552	)		(20,253	)
American Funds - Growth-Income Class 2 Shares		—		8,514			8,514			—		(15,497	)		(15,497	)
American Funds - International Class 2 Shares		3,483		3,098			6,581			514		(78,274	)		(77,760	)
BlackRock Basic Value V.I. Class I Shares		3,413,760		(3,503,332	)		(89,572	)		764,695		(870,255	)		(105,560	)
BlackRock Capital Appreciation V.I. Class I Shares		3,818,071		(4,173,094	)		(355,023	)		1,326,005		(1,618,234	)		(292,229	)
BlackRock Equity Dividend V.I. Class I Shares		536		(4,025	)		(3,489	)		918		(5,626	)		(4,708	)
BlackRock Global Allocation V.I. Class I Shares		36,901		(156,477	)		(119,576	)		41,953		(181,556	)		(139,603	)
BlackRock Global Opportunities V.I. Class I Shares		2,488		(21,170	)		(18,682	)		8,383		(32,751	)		(24,368	)
BlackRock Global Opportunities V.I. Class III Shares		—		(1	)		(1	)		—		(372	)		(372	)
BlackRock High Yield V.I. Class I Shares		4,872		20,899			25,771			10,073		(54,336	)		(44,263	)
BlackRock International V.I. Class I Shares		1,642,868		(1,688,260	)		(45,392	)		388,090		(512,458	)		(124,368	)
BlackRock Large Cap Core V.I. Class I Shares		11,540		(74,651	)		(63,111	)		4,357		(30,140	)		(25,783	)
BlackRock Large Cap Growth V.I. Class I Shares		11,198		(86,697	)		(75,499	)		23,878		(106,482	)		(82,604	)
BlackRock Large Cap Value V.I. Class I Shares		7,228		(79,206	)		(71,978	)		10,980		(77,408	)		(66,428	)
BlackRock Managed Volatility V.I. Class I Shares		1,136		(9,987	)		(8,851	)		—		(9,771	)		(9,771	)
BlackRock Money Market V.I. Class I Shares		1,847,118		(1,679,176	)		167,942			415,583		(625,959	)		(210,376	)
BlackRock S&P 500 Index V.I. Class I Shares		1,407,089		(1,442,888	)		(35,799	)		168,674		(246,467	)		(77,793	)

18

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

3. Change in Units (continued)

	Year Ended December 31, 2013								Year Ended December 31, 2012
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
BlackRock Total Return V.I. Class I Shares		256,903		(312,127	)		(55,224	)		63,239		(138,584	)		(75,345	)
BlackRock U.S. Government Bond V.I. Class I Shares		3,540,550		(3,632,362	)		(91,812	)		709,523		(811,432	)		(101,909	)
BlackRock Value Opportunities V.I. Class I Shares		242,897		(279,260	)		(36,363	)		20,182		(51,947	)		(31,765	)
Columbia - Select Smaller-Cap Value Class 1 Shares		922,099		(936,291	)		(14,192	)		317,486		(336,013	)		(18,527	)
Davis Value		2,318,729		(2,373,892	)		(55,163	)		314,246		(404,603	)		(90,357	)
Dreyfus VIF Appreciation Service Shares		463		(24,077	)		(23,614	)		74		(27,265	)		(27,191	)
Eaton Vance VT Floating-Rate Income		990		(5,223	)		(4,233	)		—		14,636			14,636
Eaton Vance VT Large-Cap Value		646		(45,268	)		(44,622	)		255		(107,406	)		(107,151	)
Federated Kaufmann II Primary Shares		766,397		(778,743	)		(12,346	)		21,885		(43,960	)		(22,075	)
Federated Managed Tail Risk II Primary Shares		136,137		(148,267	)		(12,130	)		16,019		(20,853	)		(4,834	)
Franklin Templeton Foreign Securities Class 2 Shares		1,719		(11,797	)		(10,078	)		890		(4,468	)		(3,578	)
Franklin Templeton Growth Securities Class 2 Shares		82		6,353			6,435			—		(3,698	)		(3,698	)
Invesco V.I. American Franchise Series I Shares		1,040,246		(1,056,150	)		(15,904	)		184,983		(29,160	)		155,823
Invesco V.I. Comstock Series I Shares		2,406,630		(2,496,080	)		(89,450	)		698,716		(936,955	)		(238,239	)
Invesco V.I. Core Equity Series I Shares		790,966		(831,982	)		(41,016	)		10,255		(62,444	)		(52,189	)
Invesco V.I. International Growth Series I Shares		1,491,983		(1,505,209	)		(13,226	)		457,913		(521,827	)		(63,914	)
Invesco V.I. Mid Cap Core Equity Series I Shares		1		(2,061	)		(2,060	)		—		(1,560	)		(1,560	)
Invesco V.I. Value Opportunities Series I Shares		—		(75	)		(75	)		—		(5,556	)		(5,556	)
Janus Aspen - Enterprise Service Shares		—		(1,054	)		(1,054	)		—		(15	)		(15	)
Janus Aspen - Forty Service Shares		—		(1,400	)		(1,400	)		—		(468	)		(468	)
MFS® Growth Initial Class		4,985,122		(5,095,548	)		(110,426	)		1,491,125		(1,597,031	)		(105,906	)
Oppenheimer Capital Appreciation Service Shares		5,823		(189	)		5,634			—		(81	)		(81	)
Oppenheimer Main Street Small Cap Service Shares		—		171			171			—		(1,484	)		(1,484	)
Oppenheimer Main Street® Service Shares		1,391		5,900			7,291			—		(42	)		(42	)
PIMCO CommodityRealReturn® Strategy Administrative Class		5,818		6,405			12,223			27		(3,095	)		(3,068	)
PIMCO Low Duration Administrative Class		11,710		72,876			84,586			110		84,725			84,835
PIMCO Real Return Administrative Class		12,539		(47,191	)		(34,652	)		107		31,011			31,118

19

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

3. Change in Units (continued)

	Year Ended December 31, 2013								Year Ended December 31, 2012
Subaccount	Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)			Units Purchased		Units Redeemed and Transferred to/from			Net Increase (Decrease)
PIMCO Total Return Administrative Class		5,803,319		(6,142,972	)		(339,653	)		1,517,776		(1,584,396	)		(66,620	)
Pioneer Emerging Markets VCT Class II Shares		509		579			1,088			—		(675	)		(675	)
Pioneer Fund VCT Class II Shares		—		(11	)		(11	)		—		(11	)		(11	)
Pioneer High Yield VCT Class II Shares		108		2,404			2,512			—		(9,926	)		(9,926	)
Pioneer Real Estate Shares VCT Class II Shares		115		1,978			2,093			—		1,848			1,848
TA AllianceBernstein Dynamic Allocation Service Class		—		—			—			—		—			—
TA Morgan Stanley Mid-Cap Growth Service Class		586		(16,751	)		(16,165	)		136		(10,682	)		(10,546	)
TA Systematic Small/Mid Cap Value Service Class		720		111,210			111,930			47		7,970			8,017
TA WMC Diversified Growth Service Class		554		(143,486	)		(142,932	)		407		(98,699	)		(98,292	)
Wanger International		2,047		34,546			36,593			137		(14,102	)		(13,965	)
Wanger USA		457		7,330			7,787			22		(5,258	)		(5,236	)

20

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

4. Financial Highlights

The Separate Account offers various death benefit options, which have differing fees that are charged against the contract owner’s account balance. These charges are discussed in more detail in the individual’s policy. Differences in the fee structures for these units result in different unit values, expense ratios, and total returns.

					Unit Fair Value										Expense						Total Return***
					Corresponding to							Investment			Ratio**						Corresponding to
	Year				Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Ended		Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
AllianceBernstein Global Thematic Growth Class A Shares
		12/31/2013		213,761	$	8.53	to	$	8.53	$	1,823,563		0.27	%		1.35	%	to	1.35	%		21.61	%	to	21.61	%
		12/31/2012		213,969		7.02	to		7.02		1,500,995		—			1.35		to	1.35			11.99		to	11.99
		12/31/2011		255,542		6.26	to		6.26		1,600,700		0.58			1.35		to	1.35			(24.25	)	to	(24.25	)
		12/31/2010		267,095		8.27	to		8.27		2,208,672		2.19			1.35		to	1.35			17.35		to	17.35
		12/31/2009		254,960		7.05	to		7.05		1,796,585		—			1.35		to	1.35			51.43		to	51.43
AllianceBernstein Growth and Income Class A Shares
		12/31/2013		47,856		17.95	to		17.94		858,604		1.39			1.55		to	1.59			32.89		to	32.84
		12/31/2012		57,307		13.51	to		13.51		773,988		1.58			1.55		to	1.59			15.71		to	15.67
		12/31/2011		62,097		11.67	to		11.68		725,043		1.29			1.55		to	1.59			4.70		to	4.66
		12/31/2010		68,846		11.15	to		11.16		768,027		—			1.55		to	1.59			11.37		to	11.32
		12/31/2009		150,719		10.01	to		10.02		1,510,043		6.63			1.55		to	1.59			18.97		to	18.92
AllianceBernstein International Value Class A Shares
		12/31/2013		15,040		7.29	to		7.09		108,300		6.27			1.25		to	1.65			21.48		to	20.99
		12/31/2012		15,499		6.00	to		5.86		92,024		1.69			1.25		to	1.65			13.11		to	12.65
		12/31/2011		15,284		5.30	to		5.20		80,377		2.67			1.25		to	1.65			(20.25	)	to	(20.56	)
		12/31/2010		61,617		6.65	to		6.55		404,384		3.38			1.25		to	1.65			3.30		to	2.90
		12/31/2009		54,381		6.44	to		6.37		346,468		1.38			1.25		to	1.65			33.01		to	32.48
AllianceBernstein Large Cap Growth Class A Shares
		12/31/2013		325,768		24.79	to		8.95		7,487,973		0.07			1.35		to	1.59			35.51		to	35.18
		12/31/2012		373,979		18.30	to		6.62		6,335,889		0.29			1.35		to	1.59			14.82		to	14.55
		12/31/2011		462,695		15.93	to		5.78		6,796,083		0.33			1.35		to	1.59			(4.33	)	to	(4.56	)
		12/31/2010		529,603		16.66	to		6.05		8,143,425		0.48			1.35		to	1.59			8.63		to	8.38
		12/31/2009		629,655		15.33	to		5.59		8,956,082		0.15			1.35		to	1.59			35.68		to	35.35
AllianceBernstein Small/Mid Cap Value Class A Shares
		12/31/2013		22,864		21.70	to		20.91		483,980		0.61			1.25		to	1.65			36.34		to	35.80
		12/31/2012		24,462		15.92	to		15.40		380,878		0.65			1.25		to	1.65			17.27		to	16.80
		12/31/2011		47,316		13.57	to		13.19		627,536		0.41			1.25		to	1.65			(9.52	)	to	(9.88	)
		12/31/2010		22,098		15.00	to		14.63		324,757		0.44			1.25		to	1.65			25.34		to	24.85
		12/31/2009		23,001		11.97	to		11.72		270,547		0.64			1.25		to	1.65			41.08		to	40.52
AllianceBernstein Value Class A Shares
		12/31/2013		22,209		14.73	to		14.19		316,955		2.30			1.25		to	1.65			35.15		to	34.61
		12/31/2012		23,511		10.90	to		10.54		249,133		2.00			1.25		to	1.65			14.29		to	13.83
		12/31/2011		24,565		9.53	to		9.26		228,662		1.41			1.25		to	1.65			(4.69	)	to	(5.07	)
		12/31/2010		26,074		10.00	to		9.76		255,425		1.97			1.25		to	1.65			10.43		to	10.00
		12/31/2009		25,257		9.06	to		8.87		224,687		3.49			1.25		to	1.65			19.62		to	19.14
American Century VP International Class I Shares
		12/31/2013		189,463		14.32	to		14.32		2,712,802		1.86			1.35		to	1.35			20.77		to	20.77
		12/31/2012		237,165		11.86	to		11.86		2,811,797		0.89			1.35		to	1.35			19.53		to	19.53
		12/31/2011		290,815		9.92	to		9.92		2,884,459		1.48			1.35		to	1.35			(13.21	)	to	(13.21	)
		12/31/2010		302,327		11.43	to		11.43		3,455,137		2.33			1.35		to	1.35			11.78		to	11.78
		12/31/2009		323,834		10.22	to		10.22		3,310,761		3.07			1.35		to	1.35			31.97		to	31.97
American Century VP Ultra® Class I Shares
		12/31/2013		24,328		16.91	to		16.30		394,479		0.56			1.25		to	1.65			35.37		to	34.83
		12/31/2012		26,544		12.49	to		12.09		318,194		—			1.25		to	1.65			12.51		to	12.06
		12/31/2011		26,983		11.10	to		10.79		287,961		—			1.25		to	1.65			(0.18	)	to	(0.57	)
		12/31/2010		24,857		11.12	to		10.85		266,839		0.50			1.25		to	1.65			14.65		to	14.20
		12/31/2009		36,912		9.70	to		9.50		345,405		0.95			1.25		to	1.65			32.81		to	32.28

21

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

4. Financial Highlights (continued)

					Unit Fair Value										Expense						Total Return***
					Corresponding to							Investment			Ratio**						Corresponding to
	Year				Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Ended		Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
American Funds - Asset Allocation Class 2 Shares
		12/31/2013		44,788	$	17.65	to	$	17.01	$	766,104		1.46	%		1.40	%	to	1.80	%		21.97	%	to	21.48	%
		12/31/2012		48,369		14.47	to		14.01		681,136		1.87			1.40		to	1.80			14.57		to	14.11
		12/31/2011		49,770		12.63	to		12.27		617,716		1.97			1.40		to	1.80			(0.10	)	to	(0.49	)
		12/31/2010		45,444		12.65	to		12.33		567,131		2.05			1.40		to	1.80			10.95		to	10.52
		12/31/2009		57,789		11.40	to		11.16		649,907		2.42			1.40		to	1.80			22.26		to	21.78
American Funds - Bond Class 2 Shares
		12/31/2013		42,704		11.97	to		11.54		500,183		1.63			1.40		to	1.80			(3.52	)	to	(3.90	)
		12/31/2012		55,906		12.41	to		12.00		678,304		2.20			1.40		to	1.80			3.90		to	3.49
		12/31/2011		71,777		11.94	to		11.60		843,176		3.00			1.40		to	1.80			4.64		to	4.23
		12/31/2010		89,247		11.41	to		11.13		1,005,549		3.02			1.40		to	1.80			4.97		to	4.56
		12/31/2009		275,169		10.87	to		10.64		2,951,093		2.98			1.40		to	1.80			11.04		to	10.60
American Funds - Growth Class 2 Shares
		12/31/2013		107,770		19.03	to		18.35		2,006,378		0.96			1.40		to	1.80			28.29		to	27.78
		12/31/2012		109,652		14.84	to		14.36		1,596,957		0.75			1.40		to	1.80			16.25		to	15.78
		12/31/2011		129,905		12.76	to		12.40		1,634,433		0.59			1.40		to	1.80			(5.60	)	to	(5.97	)
		12/31/2010		151,254		13.52	to		13.19		2,019,977		0.71			1.40		to	1.80			17.04		to	16.58
		12/31/2009		162,100		11.55	to		11.31		1,851,522		0.51			1.40		to	1.80			37.48		to	36.93
American Funds - Growth-Income Class 2 Shares
		12/31/2013		80,841		17.04	to		16.42		1,343,082		1.47			1.40		to	1.80			31.64		to	31.12
		12/31/2012		72,327		12.94	to		12.52		917,428		1.49			1.40		to	1.80			15.84		to	15.38
		12/31/2011		87,824		11.17	to		10.85		966,668		1.27			1.40		to	1.80			(3.18	)	to	(3.56	)
		12/31/2010		143,741		11.54	to		11.26		1,631,468		1.46			1.40		to	1.80			9.89		to	9.46
		12/31/2009		152,178		10.50	to		10.28		1,574,584		1.63			1.40		to	1.80			29.42		to	28.90
American Funds - International Class 2 Shares
		12/31/2013		286,040		18.82	to		18.14		5,261,441		1.40			1.40		to	1.80			19.94		to	19.47
		12/31/2012		279,459		15.69	to		15.18		4,297,125		1.38			1.40		to	1.80			16.26		to	15.80
		12/31/2011		357,219		13.50	to		13.11		4,736,309		1.70			1.40		to	1.80			(15.15	)	to	(15.48	)
		12/31/2010		416,639		15.91	to		15.51		6,526,334		2.05			1.40		to	1.80			5.75		to	5.34
		12/31/2009		441,288		15.04	to		14.73		6,549,862		1.64			1.40		to	1.80			41.09		to	40.52
BlackRock Basic Value V.I. Class I Shares
		12/31/2013		491,666		17.82	to		17.18		20,916,539		1.41			1.25		to	1.65			36.36		to	35.82
		12/31/2012		581,238		13.07	to		12.65		17,563,236		1.72			1.25		to	1.65			12.63		to	12.18
		12/31/2011		686,798		11.61	to		11.28		18,512,536		1.68			1.25		to	1.65			(3.65	)	to	(4.03	)
		12/31/2010		804,173		12.05	to		11.75		22,527,859		1.46			1.25		to	1.65			11.41		to	10.97
		12/31/2009		1,281,373		10.81	to		10.59		27,493,516		2.38			1.25		to	1.65			29.51		to	28.99
BlackRock Capital Appreciation V.I. Class I Shares
		12/31/2013		775,456		17.85	to		17.21		10,895,954		—			1.25		to	1.65			32.16		to	31.63
		12/31/2012		1,130,479		13.51	to		13.07		12,195,679		0.71			1.25		to	1.65			12.43		to	11.98
		12/31/2011		1,422,708		12.02	to		11.67		13,714,165		0.30			1.25		to	1.65			(10.01	)	to	(10.36	)
		12/31/2010		1,663,970		13.35	to		13.02		17,720,144		0.21			1.25		to	1.65			18.06		to	17.60
		12/31/2009		1,553,337		11.31	to		11.07		14,050,401		0.41			1.25		to	1.65			34.32		to	33.79
BlackRock Equity Dividend V.I. Class I Shares
		12/31/2013		41,016		42.14	to		42.14		1,728,424		1.94			1.35		to	1.35			22.85		to	22.85
		12/31/2012		44,505		34.30	to		34.30		1,526,613		2.23			1.35		to	1.35			10.62		to	10.62
		12/31/2011		49,213		32.76	to		32.76		1,526,116		2.07			1.35		to	1.35			5.64		to	5.64
		12/31/2010		53,357		29.66	to		29.66		1,582,496		2.79			1.35		to	1.35			8.86		to	8.86
		12/31/2009		57,733		27.24	to		27.24		1,572,861		3.19			1.35		to	1.35			13.33		to	13.33
BlackRock Global Allocation V.I. Class I Shares
		12/31/2013		1,043,722		19.29	to		18.59		35,975,357		1.11			1.25		to	1.65			13.33		to	12.88
		12/31/2012		1,163,298		17.02	to		16.47		35,662,556		1.48			1.25		to	1.65			8.91		to	8.47
		12/31/2011		1,302,901		15.63	to		15.18		36,644,072		2.08			1.25		to	1.65			(4.68	)	to	(5.06	)
		12/31/2010		1,433,651		16.40	to		15.99		43,429,096		1.19			1.25		to	1.65			8.70		to	8.27
		12/31/2009		1,497,995		15.08	to		14.77		42,207,820		1.89			1.25		to	1.65			19.70		to	19.23

22

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

4. Financial Highlights (continued)

					Unit Fair Value										Expense						Total Return***
					Corresponding to							Investment			Ratio**						Corresponding to
	Year				Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Ended		Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
BlackRock Global Opportunities V.I. Class I Shares
		12/31/2013		122,023	$	18.08	to	$	18.08	$	2,205,802		0.34	%		1.35	%	to	1.35	%		28.04	%	to	28.04	%
		12/31/2012		140,705		14.12	to		14.12		1,986,576		1.03			1.35		to	1.35			13.07		to	13.07
		12/31/2011		165,073		12.49	to		12.49		2,061,167		1.05			1.35		to	1.35			(13.56	)	to	(13.56	)
		12/31/2010		198,309		14.44	to		14.44		2,864,481		0.81			1.35		to	1.35			9.75		to	9.75
		12/31/2009		218,848		13.16	to		13.16		2,880,387		2.11			1.35		to	1.35			33.83		to	33.83
BlackRock Global Opportunities V.I. Class III Shares
		12/31/2013		498		10.57	to		10.33		5,204		0.13			1.25		to	1.65			27.90		to	27.39
		12/31/2012		499		8.26	to		8.11		4,087		0.56			1.25		to	1.65			12.85		to	12.40
		12/31/2011		872		7.32	to		7.22		6,335		0.48			1.25		to	1.65			(13.61	)	to	(13.95	)
		12/31/2010		3,267		8.47	to		8.38		27,533		0.49			1.25		to	1.65			9.56		to	9.13
		12/31/2009		5,876		7.73	to		7.68		45,292		9.56			1.25		to	1.65			33.70		to	33.16
BlackRock High Yield V.I. Class I Shares
		12/31/2013		284,136		17.71	to		17.07		8,268,955		5.84			1.25		to	1.65			7.98		to	7.55
		12/31/2012		258,365		16.40	to		15.87		7,638,745		6.57			1.25		to	1.65			14.22		to	13.76
		12/31/2011		302,628		14.36	to		13.95		7,991,488		6.97			1.25		to	1.65			2.06		to	1.66
		12/31/2010		312,311		14.07	to		13.72		8,172,893		7.72			1.25		to	1.65			13.94		to	13.49
		12/31/2009		310,231		12.35	to		12.09		7,656,934		9.47			1.25		to	1.65			54.68		to	54.06
BlackRock International V.I. Class I Shares
		12/31/2013		472,983		15.81	to		15.23		9,130,192		2.14			1.25		to	1.65			21.23		to	20.74
		12/31/2012		518,375		13.04	to		12.62		8,285,385		1.71			1.25		to	1.65			13.65		to	13.20
		12/31/2011		642,743		11.47	to		11.15		9,062,540		2.40			1.25		to	1.65			(14.77	)	to	(15.11	)
		12/31/2010		695,502		13.46	to		13.13		11,539,015		1.17			1.25		to	1.65			5.25		to	4.84
		12/31/2009		724,118		12.79	to		12.52		11,505,958		2.50			1.25		to	1.65			28.35		to	27.84
BlackRock Large Cap Core V.I. Class I Shares
		12/31/2013		443,913		17.86	to		17.21		18,056,958		1.01			1.25		to	1.65			31.96		to	31.43
		12/31/2012		507,024		13.53	to		13.10		15,754,536		1.45			1.25		to	1.65			11.31		to	10.86
		12/31/2011		532,807		12.16	to		11.81		15,470,438		1.07			1.25		to	1.65			1.13		to	0.74
		12/31/2010		616,654		12.02	to		11.73		17,859,678		1.00			1.25		to	1.65			7.78		to	7.35
		12/31/2009		719,024		11.16	to		10.92		19,472,983		1.33			1.25		to	1.65			21.02		to	20.53
BlackRock Large Cap Growth V.I. Class I Shares
		12/31/2013		351,582		17.68	to		17.04		5,210,231		0.66			1.25		to	1.65			32.26		to	31.73
		12/31/2012		427,081		13.37	to		12.94		4,788,346		1.33			1.25		to	1.65			13.79		to	13.33
		12/31/2011		509,685		11.75	to		11.41		5,025,154		0.81			1.25		to	1.65			1.19		to	0.79
		12/31/2010		593,745		11.61	to		11.32		5,798,604		0.70			1.25		to	1.65			14.06		to	13.61
		12/31/2009		947,037		10.18	to		9.97		8,507,339		0.62			1.25		to	1.65			25.24		to	24.74
BlackRock Large Cap Value V.I. Class I Shares
		12/31/2013		306,879		16.84	to		16.23		6,016,652		1.14			1.25		to	1.65			31.95		to	31.42
		12/31/2012		378,857		12.77	to		12.35		5,649,263		1.43			1.25		to	1.65			12.16		to	11.72
		12/31/2011		445,285		11.38	to		11.06		5,938,377		1.28			1.25		to	1.65			(1.98	)	to	(2.36	)
		12/31/2010		522,497		11.61	to		11.32		7,124,898		1.11			1.25		to	1.65			7.27		to	6.85
		12/31/2009		614,995		10.82	to		10.60		7,844,776		1.57			1.25		to	1.65			12.91		to	12.46
BlackRock Managed Volatility V.I. Class I Shares
		12/31/2013		106,639		25.65	to		25.65		2,735,561		1.46			1.35		to	1.35			11.11		to	11.11
		12/31/2012		115,490		23.09	to		23.09		2,666,423		1.39			1.35		to	1.35			8.40		to	8.40
		12/31/2011		125,261		21.30	to		21.30		2,667,796		2.10			1.35		to	1.35			2.46		to	2.46
		12/31/2010		138,478		20.79	to		20.79		2,878,406		1.78			1.35		to	1.35			7.32		to	7.32
		12/31/2009		154,856		19.37	to		19.37		2,999,396		2.24			1.35		to	1.35			16.36		to	16.36
BlackRock Money Market V.I. Class I Shares
		12/31/2013		993,795		10.34	to		9.96		13,283,529		—			1.25		to	1.65			(1.24	)	to	(1.63	)
		12/31/2012		825,853		10.47	to		10.13		10,974,288		—			1.25		to	1.65			(1.24	)	to	(1.64	)
		12/31/2011		1,036,229		10.60	to		10.30		14,043,751		—			1.25		to	1.65			(1.23	)	to	(1.62	)
		12/31/2010		1,225,583		10.73	to		10.47		16,913,822		—			1.25		to	1.65			(1.23	)	to	(1.62	)
		12/31/2009		1,533,699		10.86	to		10.64		21,470,075		0.15			1.25		to	1.65			(1.08	)	to	(1.48	)

23

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

4. Financial Highlights (continued)

						Unit Fair Value										Expense						Total Return***
						Corresponding to							Investment			Ratio**						Corresponding to
	Year					Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Ended			Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
BlackRock S&P 500 Index V.I. Class I Shares
		12/31/2013			585,164	$	17.43	to	$	16.80	$	13,970,899		1.70	%		1.25	%	to	1.65	%		30.23	%	to	29.71	%
		12/31/2012			620,963		13.38	to		12.95		11,390,754		1.81			1.25		to	1.65			14.16		to	13.70
		12/31/2011			698,756		11.72	to		11.39		11,273,825		1.65			1.25		to	1.65			0.44		to	0.05
		12/31/2010			781,616		11.67	to		11.38		12,492,750		1.61			1.25		to	1.65			13.28		to	12.84
		12/31/2009			869,386		10.30	to		10.09		12,293,941		2.03			1.25		to	1.65			24.62		to	24.13
BlackRock Total Return V.I. Class I Shares
		12/31/2013			466,453		12.83	to		12.37		10,924,449		3.10			1.25		to	1.65			(2.36	)	to	(2.75	)
		12/31/2012			521,677		13.14	to		12.72		12,454,167		3.50			1.25		to	1.65			6.90		to	6.48
		12/31/2011			597,022		12.29	to		11.94		13,375,318		4.15			1.25		to	1.65			4.87		to	4.46
		12/31/2010			677,920		11.72	to		11.43		14,524,504		4.98			1.25		to	1.65			8.23		to	7.80
		12/31/2009			775,958		10.83	to		10.61		15,419,570		5.97			1.25		to	1.65			16.42		to	15.96
BlackRock U.S. Government Bond V.I. Class I Shares
		12/31/2013			498,152		12.17	to		11.73		8,887,412		2.45			1.25		to	1.65			(4.46	)	to	(4.84	)
		12/31/2012			589,964		12.74	to		12.33		11,065,663		2.44			1.25		to	1.65			1.13		to	0.73
		12/31/2011			691,873		12.60	to		12.24		13,048,787		3.19			1.25		to	1.65			5.01		to	4.60
		12/31/2010			909,622		12.00	to		11.70		16,338,569		3.81			1.25		to	1.65			7.42		to	7.00
		12/31/2009			1,208,834		11.17	to		10.94		19,835,979		3.87			1.25		to	1.65			(3.01	)	to	(3.40	)
BlackRock Value Opportunities V.I. Class I Shares
		12/31/2013			234,857		19.07	to		18.38		13,666,286		0.52			1.25		to	1.65			40.63		to	40.07
		12/31/2012			271,220		13.56	to		13.12		11,237,398		0.46			1.25		to	1.65			12.12		to	11.68
		12/31/2011			302,985		12.10	to		11.75		11,333,705		0.37			1.25		to	1.65			(3.63	)	to	(4.01	)
		12/31/2010			370,714		12.55	to		12.24		14,508,731		0.53			1.25		to	1.65			27.10		to	26.60
		12/31/2009			405,988		9.87	to		9.67		12,544,382		0.76			1.25		to	1.65			26.75		to	26.24
Columbia - Select Smaller-Cap Value Class 1 Shares
		12/31/2013			69,741		14.75	to		14.73		1,027,517		—			1.55		to	1.59			46.27		to	46.21
		12/31/2012			83,933		10.08	to		10.07		845,675		—			1.55		to	1.59			16.10		to	16.05
		12/31/2011	(1)		102,460		8.68	to		8.68		889,487		—			1.55		to	1.59			(13.17	)	to	(13.20	)
Davis Value
		12/31/2013			381,349		16.25	to		15.66		6,050,651		0.85			1.25		to	1.65			31.77		to	31.25
		12/31/2012			436,512		12.33	to		11.93		5,251,831		1.59			1.25		to	1.65			11.67		to	11.23
		12/31/2011			526,869		11.04	to		10.73		5,678,634		0.69			1.25		to	1.65			(5.36	)	to	(5.73	)
		12/31/2010			981,381		11.67	to		11.38		11,327,516		1.53			1.25		to	1.65			11.37		to	10.94
		12/31/2009			1,311,711		10.48	to		10.26		13,576,263		1.17			1.25		to	1.65			29.53		to	29.01
Dreyfus VIF Appreciation Service Shares
		12/31/2013			58,863		17.79	to		17.14		1,021,548		1.76			1.15		to	1.55			19.44		to	18.97
		12/31/2012			82,477		14.89	to		14.41		1,202,268		3.39			1.15		to	1.55			8.87		to	8.44
		12/31/2011			109,668		13.68	to		13.29		1,472,006		1.54			1.15		to	1.55			7.51		to	7.08
		12/31/2010			135,749		12.72	to		12.41		1,699,313		0.12			1.15		to	1.55			13.74		to	13.29
		12/31/2009			4,639		11.19	to		10.95		50,995		5.12			1.15		to	1.55			20.83		to	20.35
Eaton Vance VT Floating-Rate Income
		12/31/2013			61,478		13.25	to		12.77		789,448		3.49			1.15		to	1.55			2.67		to	2.26
		12/31/2012			65,711		12.91	to		12.49		827,205		4.23			1.15		to	1.55			6.11		to	5.68
		12/31/2011			51,075		12.16	to		11.82		608,945		4.26			1.15		to	1.55			1.39		to	1.00
		12/31/2010			45,566		12.00	to		11.70		537,597		4.25			1.15		to	1.55			7.90		to	7.47
		12/31/2009			32,700		11.12	to		10.89		357,945		4.77			1.15		to	1.55			42.77		to	42.20
Eaton Vance VT Large-Cap Value
		12/31/2013			188,717		12.17	to		11.85		2,258,334		0.88			1.15		to	1.55			27.27		to	26.77
		12/31/2012			233,339		9.56	to		9.35		2,199,153		1.24			1.15		to	1.55			13.80		to	13.35
		12/31/2011			340,490		8.40	to		8.25		2,826,028		1.14			1.15		to	1.55			(7.04	)	to	(7.41	)
		12/31/2010			406,162		9.04	to		8.91		3,636,393		0.27			1.15		to	1.55			14.13		to	13.68
		12/31/2009			289,818		7.92	to		7.83		2,279,265		0.94			1.15		to	1.55			16.90		to	16.43

24

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

4. Financial Highlights (continued)

					Unit Fair Value										Expense						Total Return***
					Corresponding to							Investment			Ratio**						Corresponding to
	Year				Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Ended		Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
Federated Kaufmann II Primary Shares
		12/31/2013		115,721	$	20.01	to	$	19.28	$	2,237,712		—	%		1.25	%	to	1.65	%		38.38	%	to	37.83	%
		12/31/2012		128,067		14.46	to		13.99		1,792,449		—			1.25		to	1.65			15.83		to	15.37
		12/31/2011		150,142		12.48	to		12.13		1,816,311		1.08			1.25		to	1.65			(14.35	)	to	(14.69	)
		12/31/2010		174,361		14.57	to		14.21		2,465,108		0.14			1.25		to	1.65			16.54		to	16.08
		12/31/2009		476,372		12.51	to		12.25		5,752,677		—			1.25		to	1.65			27.88		to	27.37
Federated Managed Tail Risk II Primary Shares
		12/31/2013		20,333		13.89	to		13.38		273,840		0.99			1.25		to	1.65			15.01		to	14.55
		12/31/2012		32,463		12.08	to		11.69		381,032		0.54			1.25		to	1.65			8.80		to	8.37
		12/31/2011		37,297		11.10	to		10.78		402,662		0.71			1.25		to	1.65			(6.46	)	to	(6.83	)
		12/31/2010		38,232		11.87	to		11.57		442,197		2.75			1.25		to	1.65			11.68		to	11.24
		12/31/2009		315,236		10.62	to		10.40		3,291,961		1.31			1.25		to	1.65			12.07		to	11.62
Franklin Templeton Foreign Securities Class 2 Shares
		12/31/2013		37,233		18.16	to		17.50		660,303		2.30			1.15		to	1.55			21.57		to	21.08
		12/31/2012		47,311		14.94	to		14.46		692,436		3.05			1.15		to	1.55			16.88		to	16.41
		12/31/2011		50,889		12.78	to		12.42		639,596		1.60			1.15		to	1.55			(11.65	)	to	(12.00	)
		12/31/2010		47,201		14.47	to		14.11		673,188		1.93			1.15		to	1.55			7.17		to	6.75
		12/31/2009		46,087		13.50	to		13.22		614,487		3.29			1.15		to	1.55			35.48		to	34.94
Franklin Templeton Growth Securities Class 2 Shares
		12/31/2013		15,156		16.25	to		15.66		239,975		2.45			1.15		to	1.55			29.33		to	28.81
		12/31/2012		8,721		12.56	to		12.16		107,039		1.88			1.15		to	1.55			19.68		to	19.20
		12/31/2011		12,419		10.50	to		10.20		127,424		1.25			1.15		to	1.55			(8.03	)	to	(8.39	)
		12/31/2010		13,790		11.41	to		11.13		154,334		1.40			1.15		to	1.55			6.17		to	5.76
		12/31/2009		11,355		10.75	to		10.53		119,898		3.38			1.15		to	1.55			29.61		to	29.09
Invesco V.I. American Franchise Series I Shares
		12/31/2013		148,263		13.36	to		7.82		1,946,407		0.44			1.35		to	1.59			38.26		to	37.93
		12/31/2012		164,167		11.64	to		5.67		1,560,022		—			1.35		to	1.59			11.98		to	11.93
		12/31/2011		8,344		11.81	to		5.76		43,468		—			1.55		to	1.59			13.66		to	13.65
		12/31/2010		11,120		11.25	to		5.49		66,556		—			1.55		to	1.59			18.02		to	17.97
		12/31/2009		18,558		9.53	to		4.65		86,296		0.05			1.55		to	1.59			63.52		to	63.45
Invesco V.I. Comstock Series I Shares
		12/31/2013		604,173		17.72	to		17.08		10,733,307		1.68			1.25		to	1.65			34.29		to	33.75
		12/31/2012		693,623		13.19	to		12.77		9,216,105		1.73			1.25		to	1.65			17.75		to	17.28
		12/31/2011		931,862		11.20	to		10.89		10,517,268		1.80			1.25		to	1.65			(3.05	)	to	(3.43	)
		12/31/2010		628,602		11.56	to		11.27		7,264,558		0.08			1.25		to	1.65			14.55		to	14.10
		12/31/2009		162,569		10.09	to		9.88		1,669,947		7.72			1.25		to	1.65			27.18		to	26.68
Invesco V.I. Core Equity Series I Shares
		12/31/2013		279,317		15.76	to		15.47		4,401,819		1.36			1.35		to	1.59			27.52		to	27.21
		12/31/2012		320,333		12.36	to		12.16		3,958,937		0.95			1.35		to	1.59			12.35		to	12.08
		12/31/2011		372,522		11.00	to		10.85		4,098,085		0.94			1.35		to	1.59			(1.39	)	to	(1.62	)
		12/31/2010		426,810		11.16	to		11.03		4,761,555		0.74			1.35		to	1.59			8.10		to	7.84
		12/31/2009		726,912		10.32	to		10.23		7,480,574		1.43			1.35		to	1.59			26.58		to	26.28
Invesco V.I. International Growth Series I Shares
		12/31/2013		69,561		23.14	to		12.89		1,027,232		1.27			1.55		to	1.59			17.18		to	17.14
		12/31/2012		82,787		19.75	to		11.01		1,034,122		1.29			1.55		to	1.59			13.75		to	13.71
		12/31/2011		146,701		17.36	to		9.68		1,682,694		1.54			1.55		to	1.59			(8.16	)	to	(8.20	)
		12/31/2010		183,584		18.90	to		10.54		2,320,278		1.22			1.55		to	1.59			11.14		to	11.10
		12/31/2009		40,947		17.01	to		9.49		462,164		1.57			1.55		to	1.59			33.17		to	33.11
Invesco V.I. Mid Cap Core Equity Series I Shares
		12/31/2013		15,611		17.96	to		17.31		273,080		0.74			1.25		to	1.65			27.21		to	26.71
		12/31/2012		17,671		14.12	to		13.66		243,504		0.06			1.25		to	1.65			9.57		to	9.13
		12/31/2011		19,231		12.89	to		12.52		243,009		0.30			1.25		to	1.65			(7.53	)	to	(7.89	)
		12/31/2010		19,094		13.94	to		13.59		261,713		0.57			1.25		to	1.65			12.70		to	12.26
		12/31/2009		76,580		12.36	to		12.11		934,306		1.85			1.25		to	1.65			28.60		to	28.08

25

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

4. Financial Highlights (continued)

					Unit Fair Value										Expense						Total Return***
					Corresponding to							Investment			Ratio**						Corresponding to
	Year				Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Ended		Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
Invesco V.I. Value Opportunities Series I Shares
		12/31/2013		8,558	$	14.06	to	$	13.55	$	115,955		1.49	%		1.25	%	to	1.65	%		32.09	%	to	31.57	%
		12/31/2012		8,633		10.64	to		10.30		88,906		1.34			1.25		to	1.65			16.24		to	15.77
		12/31/2011		14,189		9.16	to		8.90		127,646		0.91			1.25		to	1.65			(4.24	)	to	(4.62	)
		12/31/2010		14,210		9.56	to		9.33		133,811		0.61			1.25		to	1.65			6.03		to	5.61
		12/31/2009		14,238		9.02	to		8.83		126,745		2.41			1.25		to	1.65			46.17		to	45.58
Janus Aspen - Enterprise Service Shares
		12/31/2013		2,945		16.80	to		16.35		48,620		0.37			1.15		to	1.55			30.53		to	30.01
		12/31/2012		3,999		12.87	to		12.57		50,758		—			1.15		to	1.55			15.65		to	15.18
		12/31/2011		4,014		11.13	to		10.92		44,146		—			1.15		to	1.55			(2.77	)	to	(3.15	)
		12/31/2010		4,377		11.44	to		11.27		49,675		—			1.15		to	1.55			24.09		to	23.60
		12/31/2009		46,697		9.22	to		9.12		427,710		—			1.15		to	1.55			42.79		to	42.23
Janus Aspen - Forty Service Shares
		12/31/2013		9,951		16.39	to		15.95		160,652		0.59			1.15		to	1.55			29.39		to	28.87
		12/31/2012		11,351		12.67	to		12.38		141,957		0.58			1.15		to	1.55			22.44		to	21.95
		12/31/2011		11,819		10.35	to		10.15		121,008		0.22			1.15		to	1.55			(8.00	)	to	(8.36	)
		12/31/2010		68,934		11.24	to		11.07		764,458		0.11			1.15		to	1.55			5.27		to	4.85
		12/31/2009		340,804		10.68	to		10.56		3,611,744		0.01			1.15		to	1.55			44.35		to	43.77
MFS® Growth Initial Class
		12/31/2013		375,204		26.74	to		9.20		6,606,377		0.22			1.35		to	1.59			35.02		to	34.69
		12/31/2012		485,630		19.81	to		6.83		5,962,974		—			1.35		to	1.59			15.81		to	15.53
		12/31/2011		591,536		17.10	to		5.91		6,266,614		0.19			1.35		to	1.59			(1.65	)	to	(1.88	)
		12/31/2010		665,153		17.39	to		6.02		7,276,031		0.11			1.35		to	1.59			13.80		to	13.53
		12/31/2009		400,687		15.28	to		5.31		4,713,912		0.33			1.35		to	1.59			35.83		to	35.51
Oppenheimer Capital Appreciation Service Shares
		12/31/2013		10,732		15.58	to		15.01		162,556		0.58			1.15		to	1.55			27.95		to	27.44
		12/31/2012		5,098		12.18	to		11.78		61,056		0.44			1.15		to	1.55			12.50		to	12.05
		12/31/2011		5,179		10.82	to		10.51		55,249		0.09			1.15		to	1.55			(2.49	)	to	(2.88	)
		12/31/2010		4,578		11.10	to		10.83		50,138		—			1.15		to	1.55			7.90		to	7.48
		12/31/2009		4,590		10.29	to		10.07		46,684		0.01			1.15		to	1.55			42.51		to	41.94
Oppenheimer Main Street Small Cap Service Shares
		12/31/2013		7,527		21.53	to		20.75		159,415		0.69			1.15		to	1.55			39.02		to	38.46
		12/31/2012		7,356		15.49	to		14.99		112,487		0.37			1.15		to	1.55			16.32		to	15.86
		12/31/2011		8,840		13.31	to		12.94		116,859		0.40			1.15		to	1.55			(3.49	)	to	(3.87	)
		12/31/2010		10,345		13.80	to		13.46		141,732		0.42			1.15		to	1.55			21.66		to	21.18
		12/31/2009		11,192		11.34	to		11.10		126,183		0.63			1.15		to	1.55			35.32		to	34.78
Oppenheimer Main Street® Service Shares
		12/31/2013		12,206		17.18	to		16.55		203,564		1.05			1.15		to	1.55			29.94		to	29.42
		12/31/2012		4,915		13.22	to		12.79		63,906		0.66			1.15		to	1.55			15.27		to	14.81
		12/31/2011		4,957		11.47	to		11.14		56,028		—			1.15		to	1.55			(1.45	)	to	(1.83	)
		12/31/2010		—		11.64	to		11.35		—		—			1.15		to	1.55			14.51		to	14.06
		12/31/2009		—		10.16	to		9.95		—		—			1.15		to	1.55			26.53		to	26.03
PIMCO CommodityRealReturn® Strategy Administrative Class
		12/31/2013		100,522		10.17	to		9.80		998,401		1.66			1.25		to	1.65			(15.76	)	to	(16.10	)
		12/31/2012		88,299		12.08	to		11.69		1,044,060		2.75			1.25		to	1.65			4.08		to	3.66
		12/31/2011		91,367		11.60	to		11.27		1,040,746		13.62			1.25		to	1.65			(8.70	)	to	(9.06	)
		12/31/2010		95,584		12.71	to		12.40		1,192,780		14.93			1.25		to	1.65			22.99		to	22.50
		12/31/2009		89,510		10.33	to		10.12		912,293		5.72			1.25		to	1.65			39.77		to	39.22
PIMCO Low Duration Administrative Class
		12/31/2013		304,673		12.41	to		12.07		3,707,604		1.39			1.25		to	1.65			(1.38	)	to	(1.77	)
		12/31/2012		220,087		12.58	to		12.29		2,722,384		1.88			1.25		to	1.65			4.54		to	4.12
		12/31/2011		135,252		12.03	to		11.80		1,603,650		1.68			1.25		to	1.65			(0.13	)	to	(0.53	)
		12/31/2010		156,079		12.05	to		11.87		1,859,158		1.26			1.25		to	1.65			3.99		to	3.58
		12/31/2009		56,629		11.59	to		11.46		650,857		3.42			1.25		to	1.65			11.94		to	11.49

26

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

4. Financial Highlights (continued)

						Unit Fair Value										Expense						Total Return***
						Corresponding to							Investment			Ratio**						Corresponding to
	Year					Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Ended			Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
PIMCO Real Return Administrative Class
		12/31/2013			199,175	$	13.66	to	$	13.16	$	2,648,814		1.52	%		1.25	%	to	1.65	%		(10.35	)%	to	(10.70	)%
		12/31/2012			233,827		15.24	to		14.74		3,477,485		1.11			1.25		to	1.65			7.41		to	6.98
		12/31/2011			202,709		14.18	to		13.78		2,813,912		2.15			1.25		to	1.65			10.30		to	9.87
		12/31/2010			224,651		12.86	to		12.54		2,839,607		1.39			1.25		to	1.65			6.78		to	6.36
		12/31/2009			218,618		12.04	to		11.79		2,595,361		3.12			1.25		to	1.65			16.93		to	16.46
PIMCO Total Return Administrative Class
		12/31/2013			1,551,303		15.04	to		14.49		25,335,544		2.18			1.25		to	1.65			(3.18	)	to	(3.57	)
		12/31/2012			1,890,956		15.53	to		15.03		31,809,983		2.57			1.25		to	1.65			8.24		to	7.81
		12/31/2011			1,957,576		14.35	to		13.94		30,693,700		2.62			1.25		to	1.65			2.34		to	1.93
		12/31/2010			2,330,614		14.02	to		13.67		35,749,298		2.41			1.25		to	1.65			6.78		to	6.36
		12/31/2009			2,565,171		13.13	to		12.86		36,635,170		5.29			1.25		to	1.65			12.66		to	12.21
Pioneer Emerging Markets VCT Class II Shares
		12/31/2013			17,779		11.02	to		10.68		192,077		0.92			1.15		to	1.55			(3.31	)	to	(3.70	)
		12/31/2012			16,691		11.40	to		11.09		186,896		0.21			1.15		to	1.55			10.38		to	9.94
		12/31/2011			17,366		10.32	to		10.09		176,629		—			1.15		to	1.55			(24.48	)	to	(24.78	)
		12/31/2010			13,922		13.67	to		13.41		187,900		0.40			1.15		to	1.55			14.30		to	13.85
		12/31/2009			70,133		11.96	to		11.78		830,217		0.31			1.15		to	1.55			72.03		to	71.35
Pioneer Fund VCT Class II Shares
		12/31/2013			1,205		16.78	to		16.17		19,618		1.03			1.15		to	1.55			31.46		to	30.94
		12/31/2012			1,216		12.76	to		12.35		15,104		1.28			1.15		to	1.55			8.69		to	8.25
		12/31/2011			1,227		11.74	to		11.41		14,074		0.75			1.15		to	1.55			(5.63	)	to	(6.00	)
		12/31/2010			4,723		12.44	to		12.14		57,548		1.23			1.15		to	1.55			14.41		to	13.96
		12/31/2009			3,244		10.88	to		10.65		34,717		1.74			1.15		to	1.55			23.48		to	22.99
Pioneer High Yield VCT Class II Shares
		12/31/2013			18,173		16.51	to		15.91		293,969		4.93			1.20		to	1.60			10.49		to	10.05
		12/31/2012			15,661		14.94	to		14.46		230,353		5.34			1.20		to	1.60			14.36		to	13.91
		12/31/2011			25,587		13.07	to		12.69		327,937		5.07			1.20		to	1.60			(3.18	)	to	(3.56	)
		12/31/2010			16,273		13.50	to		13.16		216,893		5.63			1.20		to	1.60			16.29		to	15.83
		12/31/2009			56,683		11.61	to		11.36		649,132		5.63			1.20		to	1.60			58.37		to	57.74
Pioneer Real Estate Shares VCT Class II Shares
		12/31/2013			8,898		12.98	to		12.68		112,988		2.24			1.25		to	1.65			0.28		to	(0.12	)
		12/31/2012			6,805		12.94	to		12.69		86,514		2.32			1.25		to	1.65			14.64		to	14.19
		12/31/2011			4,957		11.29	to		11.12		55,173		2.75			1.25		to	1.65			8.40		to	7.98
		12/31/2010			784		10.41	to		10.30		8,099		2.61			1.25		to	1.65			26.95		to	26.45
		12/31/2009			45,695		8.20	to		8.14		373,047		4.42			1.25		to	1.65			29.92		to	29.40
TA AllianceBernstein Dynamic Allocation Service Class
		12/31/2013			—		10.49	to		10.24		—		—			1.25		to	1.65			5.56		to	5.14
		12/31/2012			—		9.93	to		9.74		—		—			1.25		to	1.65			4.48		to	4.06
		12/31/2011			—		9.51	to		9.36		—		—			1.25		to	1.65			0.41		to	0.02
		12/31/2010			—		9.47	to		9.36		—		—			1.25		to	1.65			7.80		to	7.38
		12/31/2009			—		8.78	to		8.72		—		—			1.25		to	1.65			29.54		to	29.02
TA Morgan Stanley Mid-Cap Growth Service Class
		12/31/2013			111,666		14.73	to		14.61		1,635,993		0.60			1.25		to	1.65			37.10		to	36.56
		12/31/2012			127,831		10.74	to		10.70		1,369,733		—			1.25		to	1.65			7.42		to	6.99
		12/31/2011	(1)		138,377		10.00	to		10.00		1,383,772		—			1.25		to	1.65			—		to	—
TA Systematic Small/Mid Cap Value Service Class
		12/31/2013			168,556		16.37	to		15.99		2,715,913		0.42			1.25		to	1.65			34.35		to	33.81
		12/31/2012			56,626		12.18	to		11.95		680,030		0.25			1.25		to	1.65			14.60		to	14.14
		12/31/2011			48,609		10.63	to		10.47		511,651		0.04			1.25		to	1.65			(4.06	)	to	(4.43	)
		12/31/2010			52,026		11.08	to		10.95		572,311		0.41			1.25		to	1.65			28.45		to	27.94
		12/31/2009			7,532		8.63	to		8.56		64,632		—			1.25		to	1.65			41.13		to	40.56

27

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

4. Financial Highlights (continued)

					Unit Fair Value										Expense						Total Return***
					Corresponding to							Investment			Ratio**						Corresponding to
	Year				Lowest to Highest					Net		Income			Lowest to						Lowest to Highest
Subaccount	Ended		Units		Expense Ratio					Assets		Ratio*			Highest						Expense Ratio
TA WMC Diversified Growth Service Class
		12/31/2013		215,289	$	12.56	to	$	12.27	$	2,662,525		0.67	%		1.25	%	to	1.65	%		30.49	%	to	29.97	%
		12/31/2012		358,221		9.62	to		9.44		3,405,122		0.11			1.25		to	1.65			11.46		to	11.01
		12/31/2011		456,513		8.63	to		8.50		3,902,427		0.32			1.25		to	1.65			(5.11	)	to	(5.49	)
		12/31/2010		482,976		9.10	to		9.00		4,362,583		—			1.25		to	1.65			16.03		to	15.58
		12/31/2009		—		7.84	to		7.78		—		—			1.25		to	1.65			27.30		to	26.79
Wanger International
		12/31/2013		158,927		13.53	to		13.17		2,112,476		2.93			1.25		to	1.65			20.85		to	20.37
		12/31/2012		122,334		11.20	to		10.94		1,349,006		1.22			1.25		to	1.65			20.05		to	19.57
		12/31/2011		136,299		9.33	to		9.15		1,255,105		4.58			1.25		to	1.65			(15.67	)	to	(16.01	)
		12/31/2010		150,406		11.06	to		10.89		1,646,882		1.29			1.25		to	1.65			23.38		to	22.89
		12/31/2009		27,801		8.97	to		8.86		247,119		3.82			1.25		to	1.65			47.92		to	47.33
Wanger USA
		12/31/2013		39,185		21.16	to		20.39		809,883		0.13			1.25		to	1.65			32.09		to	31.57
		12/31/2012		31,398		16.02	to		15.50		492,394		0.32			1.25		to	1.65			18.52		to	18.05
		12/31/2011		36,634		13.51	to		13.13		485,833		—			1.25		to	1.65			(4.68	)	to	(5.06	)
		12/31/2010		40,942		14.18	to		13.83		571,103		—			1.25		to	1.65			21.83		to	21.35
		12/31/2009		41,279		11.64	to		11.39		473,789		—			1.25		to	1.65			40.46		to	39.90

⁽¹⁾  See footnote 1

* These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the Mutual Fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the Mutual Fund in which the subaccounts invest.

** These amounts represent the annualized contract expenses of the subaccount, consisting primarily of mortality and expense charges, for each period indicated. These ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the Mutual Fund have been excluded.

*** These amounts represent the total return for the periods indicated, including changes in the value of the Mutual Fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. Effective 2012, total returns reflect a full twelve month period and total returns for subaccounts opened during the year have not been disclosed as they may not be indicative of a full year return. Effective 2011, expense ratios not in effect for the full twelve months are not reflected in the total return as they may not be indicative of a full year return.

28

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

5. Administrative and Mortality and Expense Risk Charges

TALICNY deducts an annual charge during the accumulation phase, not to exceed $50, proportionately from the subaccounts’ unit values. An annual charge ranging from 1.25% to 1.65% is deducted (based on the death benefit selected) from the unit values of the subaccounts of the Separate Account for TALICNY’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 fund fee:

Subaccount	Fund Fee
American Funds Asset Allocation		0.15	%
American Funds Bond		0.15	%
American Funds Growth		0.15	%
American Funds Growth-Income		0.15	%
American Funds International		0.15	%
Dreyfus VIF Appreciation		-0.10	%
Eaton Vance VT Floating-Rate Income		-0.10	%
Eaton Vance VT Large-Cap Value		-0.10	%
Templeton Foreign Securities		-0.10	%
Templeton Growth Securities		-0.10	%
Janus Aspen Forty		-0.10	%
Janus Aspen-Enterprise		-0.10	%
Oppenheimer Capital Appreciation		-0.10	%
Oppenheimer Main Street		-0.10	%
Oppenheimer Main Street Small & Mid-Cap		-0.10	%
Pioneer Emerging Markets VCT		-0.10	%
Pioneer Fund VCT		-0.10	%
Pioneer High Yield VCT		-0.05	%

6. Income Tax

Operations of the Separate Account form a part of TALICNY, 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 TALICNY 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 TALICNY. Under existing federal income tax laws, the income of the Separate Account is not taxable to TALICNY, as long as earnings are credited under the variable annuity contracts.

7. Dividend Distributions

Dividends are not declared by the Separate Account, since the increase in the value of the underlying investment in the Mutual Funds is reflected daily in the accumulation unit price used to calculate the equity value within the Separate Account. Consequently, a dividend distribution by the Mutual Funds does not change either the accumulation unit price or equity values within the Separate Account.

29

Transamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account A

Notes to Financial Statements

December 31, 2013

8. Fair Value Measurements and Fair Value Hierarchy

The Accounting Standards Codification™ (ASC) 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the nature of inputs used to measure fair value and enhances disclosure requirements for fair value measurements.

The Separate Account has categorized its financial instruments into a three level hierarchy which is based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

Financial assets and liabilities recorded at fair value on the Statements of Assets and Liabilities are categorized as follows:

Level 1. Unadjusted quoted prices for identical assets or liabilities in an active market.

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

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

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

c) Inputs other than quoted market prices that are observable

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

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

All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon daily unadjusted quoted prices, therefore are considered Level 1.

9. Subsequent Events

The Separate Account has evaluated the financial statements for subsequent events through the date which the financial statements were issued. During this period, there were no subsequent events requiring recognition or disclosure in the financial statements.

30

FINANCIAL STATEMENTS AND SCHEDULES – STATUTORY BASIS

Transamerica Financial Life Insurance Company

Years Ended December 31, 2013, 2012 and 2011

Transamerica Financial Life Insurance Company

Financial Statements and Schedules – Statutory Basis

Years Ended December 31, 2013, 2012 and 2011

Contents

Report of Independent Auditors	1
Audited Financial Statements
Balance Sheets – Statutory Basis	3
Statements of Operations – Statutory Basis	5
Statements of Changes in Capital and Surplus – Statutory Basis	7
Statements of Cash Flow – Statutory Basis	9
Notes to Financial Statements – Statutory Basis	11
Statutory-Basis Financial Statement Schedules
Summary of Investments – Other Than Investments in Related Parties	85
Supplementary Insurance Information	86
Reinsurance	87

Report of Independent Auditors

The Board of Directors

Transamerica Financial Life Insurance Company

We have audited the accompanying statutory-basis financial statements of Transamerica Financial Life Insurance Company, which comprise the balance sheets as of December 31, 2013 and 2012, the related statutory-basis statements of operations, changes in capital and surplus, and cash flow for each of the three years in the period ended December 31, 2013, and the related notes to the financial statements. Our audits also included the statutory-basis financial statement schedules required by Regulation S-X, Article 7.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in conformity with accounting practices prescribed or permitted by the New York Department of Financial Services. Management also is responsible for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

Auditor’s responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s 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, the auditor considers internal control relevant to the entity’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 entity’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 1, to meet the requirements of New York the financial statements have been prepared in conformity with accounting practices prescribed or permitted by the New York Department of Financial Services, which practices differ from U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted accounting principles are described in Note 1. The effects on the accompanying financial statements of these variances are not reasonably determinable but are presumed to be material.

1

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the effects of the matter described in the preceding paragraph, the statutory-basis financial statements referred to above do not present fairly, in conformity with U.S. generally accepted accounting principles, the financial position of Transamerica Financial Life Insurance Company at December 31, 2013 and 2012, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2013.

Opinion on Statutory-Basis of Accounting

However, in our opinion, the statutory-basis financial statements referred to above present fairly, in all material respects, the financial position of Transamerica Financial Life Insurance Company at December 31, 2013 and 2012, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2013 in conformity with accounting practices prescribed or permitted by the New York Department of Financial Services. Also in our opinion, the related financial statement schedules, when considered in relation to the basic statutory-basis financial statements taken as a whole, present fairly in all material respects the information set forth therein.

/s/ Ernst & Young LLP

April 11, 2014

2

Transamerica Financial Life Insurance Company

Balance Sheets – Statutory Basis

(Dollars in Thousands, Except per Share Data)

	December 31
	2013		2012
Admitted assets
Cash and invested assets:
Bonds	$	7,614,084	$	7,413,206
Preferred stocks		1,706		1,573
Common stocks
Affiliated entities (cost: 2013—$4,212 ; 2012—$5,814)		4,217		6,573
Unaffiliated entities (cost: 2013— $1,616 ; 2012— $3,950)		1,954		5,113
Mortgage loans on real estate		551,082		544,544
Policy loans		64,552		60,041
Cash, cash equivalents and short-term investments		124,946		587,426
Derivatives		15,940		41,613
Other invested assets		97,025		95,315
Receivables for derivatives cash collateral posted to counterparty		157		—
Securities lending reinvested collateral assets		430,678		258,143
Total cash and invested assets		8,906,341		9,013,547
Premiums deferred and uncollected		10,466		11,297
Due and accrued investment income		88,061		87,584
Net deferred income tax asset		41,598		69,021
Reinsurance receivable		16,252		14,782
Receivable from parent, subsidiaries and affiliates		—		87,032
Accounts receivable		32,721		67,897
Estimated premium tax offset on the provision for future guarantee fund assessments		4,679		16,319
Other admitted assets		9,038		1,110
Separate account assets		20,293,235		17,590,145
Total admitted assets	$	29,402,391	$	26,958,734

3

Transamerica Financial Life Insurance Company

Balance Sheets – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	December 31
	2013			2012
Liabilities and capital and surplus
Liabilities:
Aggregate reserves for policies and contracts:
Life	$	915,424		$	842,238
Annuity		6,261,077			6,685,096
Accident and health		131,076			125,546
Policy and contract claim reserves:
Life		24,337			15,509
Annuity		407			437
Accident and health		11,283			11,356
Liability for deposit-type contracts		57,553			61,391
Other policyholders’ funds		1,158			968
Federal income taxes payable		4,010			37,507
Transfers from separate accounts due or accrued		(128,528	)		(109,165	)
Amounts withheld or retained		11,203			14,876
Remittances and items not allocated		109,543			197,241
Borrowed money		20,029			67,407
Asset valuation reserve		135,159			118,108
Interest maintenance reserve		91,711			102,036
Funds held under coinsurance and other reinsurance treaties		162			201
Reinsurance in unauthorized companies		488			518
Commissions and expense allowances payable on reinsurance assumed		10,152			12,497
Payable for securities		—			2
Payable to parent, subsidiaries and affiliates		365			—
Derivatives		53,183			12,704
Payable for securities lending		430,678			258,143
Taxes, licenses and fees due or accrued		9,264			33,603
Payable for derivative cash collateral		1,301			20,334
Deferred gain on assumption of reinsurance transaction		15,559			17,984
Other liabilities		7,993			6,043
Separate account liabilities		20,293,227			17,590,139
Total liabilities		28,467,814			26,122,719
Capital and surplus:
Common stock, $125 per share par value, 16,466 shares authorized, issued and outstanding		2,058			2,058
Preferred stock, $10 per share par value, 44,175 shares authorized, issued and outstanding		442			442
Surplus notes		150,000			150,000
Paid-in surplus		849,460			849,460
Special surplus		8,085			6,660
Unassigned deficit		(75,468	)		(172,605	)
Total capital and surplus		934,577			836,015
Total liabilities and capital and surplus	$	29,402,391		$	26,958,734

See accompanying notes.

4

Transamerica Financial Life Insurance Company

Statements of Operations – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2013			2012			2011
Revenues:
Premiums and other considerations, net of reinsurance:
Life	$	140,211		$	127,077		$	(378,419	)
Annuity		5,023,344			4,733,483			4,738,804
Accident and health		83,115			79,788			66,085
Net investment income		406,880			427,128			463,530
Amortization of interest maintenance reserve		17,702			17,065			16,416
Commissions and expense allowances on reinsurance ceded		61,037			58,516			(52,546	)
Income from fees associated with investment management, administration and contract guarantees for separate accounts		139,374			125,160			114,076
Consideration on reinsurance transaction		770			—			75,821
Income from fees associated with investment management and administration for general account		32,592			22,885			35,591
IMR adjustment due to reinsurance		—			—			13,086
Other income		35,019			28,867			24,308
		5,940,044			5,619,969			5,116,752
Benefits and expenses:
Benefits paid or provided for:
Life and accident and health benefits		107,202			82,522			145,511
Annuity benefits		115,999			121,593			105,868
Surrender benefits		4,252,300			4,039,973			3,671,197
Other benefits		6,946			5,689			8,152
Increase (decrease) in aggregate reserves for policies and contracts:
Life		73,186			56,740			(379,626	)
Annuity		(424,019	)		(243,529	)		193,394
Accident and health		5,530			4,893			1,742
		4,137,144			4,067,881			3,746,238
Insurance expenses:
Commissions		160,838			161,079			152,964
General insurance expenses		125,854			120,202			143,542
Taxes, licenses and fees		7,507			10,206			18,065
Net transfers to separate accounts		1,194,031			942,930			1,143,898
Experience refunds		450			476			85,372
Interest on surplus notes		9,375			9,375			9,375
Consideration on reinsurance recaptured and novated		—			12,732			—
Other benefits		(3,347	)		(5,002	)		(3,715	)
		1,494,708			1,251,998			1,549,501
Total benefits and expenses		5,631,852			5,319,879			5,295,739
Gain (loss) from operations before federal income tax expense and net realized capital gains (losses) on investments	$	308,192		$	300,090		$	(178,987	)

5

Transamerica Financial Life Insurance Company

Statements of Operations – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2013			2012		2011
Federal income tax expense	$	14,157		$	110,930	$	44,789
Gain (loss) from operations before net realized capital gains (losses) on investments		294,035			189,160		(223,776	)
Net realized capital (losses)/gains on investments (net of related federal income taxes and amounts tranferred to interest maintenance reserve)		(67,892	)		8,817		(43,004	)
Net income (loss)	$	226,143		$	197,977	$	(266,780	)

See accompanying notes.

6

Transamerica Financial Life Insurance Company

Statements of Changes in Capital and

Surplus – Statutory Basis

(Dollars in Thousands)

	Common Stock		Preferred Stock		Aggregate Write-ins for Other than Special Surplus Funds			Surplus Notes		Paid-in Surplus		Special Surplus		Unassigned Deficit			Total Capital and Surplus
Balance at January 1, 2011	$	2,058	$	442	$	31,476		$	150,000	$	849,460	$	4,581	$	(243,350	)	$	794,667
Net income (loss)		—		—		—			—		—		215		(266,995	)		(266,780	)
Change in net unrealized capital gains and losses, net of tax		—		—		—			—		—		—		48,801			48,801
Change in net unrealized foreign capital gains and losses, net of tax		—		—		—			—		—		—		(793	)		(793	)
Change in nonadmitted assets		—		—		—			—		—		—		19,988			19,988
Change in asset valuation reserve		—		—		—			—		—		—		1,914			1,914
Change in liability for reinsurance in unauthorized companies		—		—		—			—		—		—		601			601
Change in reserve on account of change in valuation basis		—		—		—			—		—		—		520			520
Surplus withdrawn from separate account		—		—		—			—		—		—		965			965
Other changes in surplus in separate account statement		—		—		—			—		—		—		(860	)		(860	)
Change in net deferred income tax asset		—		—		—			—		—		—		(7,754	)		(7,754	)
Change in surplus as result of reinsurance		—		—		—			—		—		—		400,760			400,760
Change in admitted deferred tax assets pursuant to SSAP No. 10R		—		—		(3,546	)		—		—		—		—			(3,546	)
Correction of error-asset valuation reserve		—		—		—			—		—		—		6,248			6,248
Correction of error-TLIC novation of group annuity policies		—		—		—			—		—		—		(2,590	)		(2,590	)
Dividends to stockholders		—		—		—			—		—		—		(300,000	)		(300,000	)
Balance at December 31, 2011		2,058		442		27,930			150,000		849,460		4,796		(342,545	)		692,141
Net income		—		—		—			—		—		1,864		196,113			197,977
Change in net unrealized capital gains and losses, net of tax		—		—		—			—		—		—		(47,417	)		(47,417	)
Change in net unrealized foreign capital gains and losses, net of tax		—		—		—			—		—		—		771			771
Change in nonadmitted assets		—		—		—			—		—		—		4,232			4,232
Change in asset valuation reserve		—		—		—			—		—		—		(16,152	)		(16,152	)
Change in liability for reinsurance in unauthorized companies		—		—		—			—		—		—		288			288
Surplus withdrawn from separate account		—		—		—			—		—		—		(152	)		(152	)
Other changes in surplus in separate account statement		—		—		—			—		—		—		(55	)		(55	)
Change in net deferred income tax asset		—		—		—			—		—		—		(12,128	)		(12,128	)
Change in surplus as result of reinsurance		—		—		—			—		—		—		36,456			36,456
Change in admitted deferred tax assets pursuant to SSAP No. 101		—		—		(27,930	)		—		—		—		27,930			—
Correction of error-GMWB reserve		—		—		—			—		—		—		(19,946	)		(19,946	)
Balance at December 31, 2012	$	2,058	$	442	$	—		$	150,000	$	849,460	$	6,660	$	(172,605	)	$	836,015

7

Transamerica Financial Life Insurance Company

Statements of Changes in Capital and

Surplus – Statutory Basis (continued)

(Dollars in Thousands)

	Common Stock		Preferred Stock		Aggregate Write-ins for Other than Special Surplus Funds		Surplus Notes		Paid-in Surplus		Special Surplus		Unassigned Deficit			Total Capital and Surplus
Balance at December 31, 2012	$	2,058	$	442	$	—	$	150,000	$	849,460	$	6,660	$	(172,605	)	$	836,015
Net income		—		—		—		—		—		1,425		224,718			226,143
Change in net unrealized capital gains and losses, net of tax		—		—		—		—		—		—		(44,446	)		(44,446	)
Change in nonadmitted assets		—		—		—		—		—		—		(10,951	)		(10,951	)
Change in asset valuation reserve		—		—		—		—		—		—		(11,971	)		(11,971	)
Change in liability for reinsurance in unauthorized companies		—		—		—		—		—		—		30			30
Other changes in surplus in separate account statement		—		—		—		—		—		—		2			2
Change in net deferred income tax asset		—		—		—		—		—		—		(40,501	)		(40,501	)
Change in surplus as result of reinsurance		—		—		—		—		—		—		(14,664	)		(14,664	)
Correction of error-asset valuation reserve		—		—		—		—		—		—		(5,080	)		(5,080	)
Balance at December 31, 2013	$	2,058	$	442	$	—	$	150,000	$	849,460	$	8,085	$	(75,468	)	$	934,577

See accompanying notes.

8

Transamerica Financial Life Insurance Company

Statements of Cash Flow – Statutory Basis

(Dollars in Thousands)

	Year Ended December 31
	2013			2012			2011
Operating activities
Premiums collected, net of reinsurance	$	5,247,885		$	4,939,853		$	4,483,991
Net investment income		412,947			440,693			481,777
Miscellaneous income		258,743			273,207			592,123
Benefit and loss related payments		(4,480,068	)		(4,271,352	)		(4,032,966	)
Net transfers to separate accounts		(1,213,394	)		(992,548	)		(1,246,079	)
Commissions, expenses paid and aggregate write-ins for deductions		(345,457	)		(368,756	)		(337,782	)
Federal and foreign income taxes paid		(51,874	)		(98,109	)		(20,425	)
Net cash used in operating activities		(171,218	)		(77,012	)		(79,361	)
Investing activities
Proceeds from investments sold, matured or repaid:
Bonds		1,371,997			2,068,919			1,767,840
Preferred stock		1,002			1,291			—
Common stock		4,196			514			2,041
Mortgage loans		130,224			159,142			199,996
Other invested assets		12,460			16,285			23,669
Securities lending reinvested collateral assets		—			217,909			798
Miscellaneous proceeds		1,444			10,801			23,856
Total investment proceeds		1,521,323			2,474,861			2,018,200
Costs of investments acquired:
Bonds		(1,570,360	)		(1,629,354	)		(1,486,259	)
Preferred stock		(1,245	)		(521	)		(618	)
Common stock		(187	)		(3,892	)		(1,694	)
Mortgage loans		(137,041	)		(80,113	)		(55,689	)
Other invested assets		(16,237	)		(14,161	)		(12,955	)
Securities lending reinvested collateral assets		(172,535	)		—			—
Miscellaneous applications		(67,942	)		(12,500	)		(32,729	)
Total cost of investments acquired		(1,965,547	)		(1,740,541	)		(1,589,944	)
Net (increase) decrease in policy loans		(4,511	)		(4,183	)		6,530
Net cost of investments acquired		(1,970,058	)		(1,744,724	)		(1,583,414	)
Net cash (used in) provided by investing activities		(448,735	)		730,137			434,786

9

Transamerica Financial Life Insurance Company

Statements of Cash Flow – Statutory Basis (continued)

(Dollars in Thousands)

	Year Ended December 31
	2013			2012			2011
Financing and miscellaneous activities
Net (withdrawals)/deposits on deposit-type contracts and other insurance liabilities	$	(148	)	$	823		$	(65,804	)
Borrowed funds		(47,219	)		67,189			—
Dividends to stockholders		—			—			(300,000	)
Funds withheld under reinsurance treaties with unauthorized reinsurers		147			(226	)		288
Receivable from parent, subsidiaries and affiliates		87,032			(65,789	)		(1,496	)
Payable to parent, subsidiaries and affiliates		365			(22,062	)		(1,967	)
Payable for securities lending		172,535			(217,909	)		(798	)
Other cash (applied) provided		(55,239	)		(5,828	)		54,106
Net cash provided (used in) by financing and miscellaneous activities		157,473			(243,802	)		(315,671	)
Net (decrease) increase in cash, cash equivalents and short-term investments		(462,480	)		409,323			39,754
Cash, cash equivalents and short-term investments:
Beginning of year		587,426			178,103			138,349
End of year	$	124,946		$	587,426		$	178,103

See accompanying notes.

10

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis

(Dollars in Thousands, Except per Share Data)

December 31, 2013

1. Organization and Summary of Significant Accounting Policies

Organization

Transamerica Financial Life Insurance Company (the Company) is a stock life insurance company and is majority owned by Aegon USA, LLC. (Aegon) and minority owned by Transamerica Life Insurance Company (TLIC). Both Aegon 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 and variable pension and annuity products, group life coverages, life insurance, investment contracts, structured settlements and guaranteed interest contracts and funding agreements. The Company is licensed in 50 states and the District of Columbia. Sales of the Company’s products are primarily through brokers.

Basis of Presentation

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

The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the New York Department of Financial Services (formerly known as the Department of Insurance of the State of New York), which practices differ from accounting principles generally accepted in the United States (GAAP). The more significant variances from GAAP are:

Investments: Investments in bonds and mandatory redeemable preferred stocks are reported at amortized cost or fair value based on their National Association of Insurance Commissioners (NAIC) rating; for GAAP, such fixed maturity investments would be designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity fixed investments would be reported at amortized cost, and the remaining fixed maturity investments would be reported at fair value with unrealized holding gains and losses reported in earnings for those designated as trading and as a separate component of other comprehensive income (OCI) for those designated as available-for-sale. Fair value for GAAP is based on indexes, third party pricing services, brokers,

11

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

external fund managers and internal models. For statutory reporting, the NAIC allows insurance companies to report the fair value determined by the Securities Valuation Office of the NAIC (SVO) or determine the fair value by using a permitted valuation method.

All single class and multi-class mortgage-backed/asset-backed securities (e.g., CMOs) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium of such securities using either the retrospective or prospective methods. If the fair value of the mortgage-backed/asset-backed security is less than amortized cost, an entity shall assess whether the impairment is other-than-temporary. An other-than-temporary impairment is considered to have occurred if the fair value of the mortgage-backed/asset-backed security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis. An other-than-temporary impairment is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security.

If it is determined an other-than-temporary impairment has occurred as a result of the cash flow analysis, the security is written down to the discounted estimated future cash flows. If an other-than-temporary impairment has occurred due to intent to sell or lack of intent and ability to hold, the security is written down to fair value.

For GAAP, all securities, purchased or retained, that represent beneficial interests in securitized assets (e.g., CMO, CBO, CDO, CLO, MBS and ABS securities), other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If high credit quality securities are adjusted, the retrospective method is used. If it is determined that a decline in fair value is other-than-temporary and the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the other-than-temporary impairment should be recognized in earnings equal to the entire difference between the amortized cost basis and its fair value at the impairment date. If the entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery, the other-than-temporary impairment should be separated into a) the amount representing the credit loss, which is recognized in earnings, and b) the amount related to all other factors, which is recognized in OCI, net of applicable taxes.

Derivative instruments used in hedging transactions that meet the criteria of an effective hedge are valued and reported in a manner that is consistent with the hedged asset or liability. Embedded derivatives are not accounted for separately from the host contract. Derivative instruments used in hedging transactions that do not meet or no longer meet

12

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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 risk of the host contract is accounted for separately from the host contract and valued and reported at fair value.

Derivative instruments are also used in replication transactions. In these transactions, the derivative is valued in a manner consistent with the cash investment and replicated asset. For GAAP, the derivative is reported at fair value, with the changes in fair value reported in income.

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

Valuation allowances are established for mortgage loans, if necessary, based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, such allowances are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral.

The initial valuation allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus as part of the change in asset valuation reserve (AVR), rather than being included as a component of earnings as would be required under GAAP.

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

13

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

and losses are reported in the statement of operations on a pre-tax basis in the period that the assets giving rise to the gains or losses are sold.

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

Subsidiaries: The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company as would be required under GAAP.

Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred. Under GAAP, incremental costs directly related to the successful acquisition of traditional life insurance and certain long-duration accident and health insurance, to the extent recoverable from future policy revenues, would be deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves; for universal life insurance and investment products, to the extent recoverable from future gross profits, deferred policy acquisition costs are amortized generally in proportion to the present value of expected gross profits from surrender charges and investment, mortality and expense margins.

Separate Accounts with Guarantees: Some of the Company’s separate accounts provide policyholders with a guaranteed return. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. These separate accounts are included in the general account for GAAP due to the nature of the guaranteed return.

Nonadmitted Assets: Certain assets designated as “nonadmitted”, primarily net deferred tax assets and other assets not specifically identified as an admitted asset within the NAIC Accounting Practices and Procedures Manual (NAIC SAP), are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the balance sheet to the extent they are not impaired.

Universal Life and Annuity Policies: Revenues for universal life and annuity policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received. Benefits incurred represent surrenders and death benefits paid and the change in policy reserves. Premiums received and benefits incurred for annuity policies without mortality or morbidity risk and guaranteed interest in group annuity contracts are recorded directly to a policy reserve account using deposit accounting, without recognizing premium income or benefits expense. Interest on these policies is reflected in other benefits. Under GAAP, for universal life policies,

14

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent interest credited to the account values and the excess of benefits paid over the policy account value. Under GAAP, for all annuity policies without significant mortality risk, premiums received and benefits paid would be recorded directly to the reserve liability.

Benefit Reserves: Certain policy reserves are calculated based on statutorily required interest and mortality assumptions rather than on estimated expected experience or actual account balances as would be required under GAAP.

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

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

Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as would be required under GAAP.

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

Deferred Income Taxes: The Company computes deferred income taxes in accordance with Statement of Statutory Accounting Principle (SSAP) No. 101, Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10. Under SSAP No. 101, admitted adjusted deferred income tax assets are limited to 1) the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback provisions, not to exceed three years, plus 2) the amount of adjusted gross deferred income tax assets expected to be realized within three years limited to an amount that is no greater than 15% of current period’s adjusted statutory capital and surplus, plus 3) the amount of remaining adjusted gross deferred income tax assets that can be offset against existing gross deferred income tax liabilities after considering the character (i.e., ordinary versus capital) and reversal patterns of the deferred tax assets and liabilities. The remaining adjusted deferred income tax assets are nonadmitted.

15

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

Deferred income taxes do not include amounts for state taxes. Under GAAP, state taxes are included in the computation of deferred income taxes, a deferred income tax asset is recorded for the amount of gross deferred income tax assets expected to be realized in all future years, and a valuation allowance is established for deferred income tax assets not realizable.

Goodwill: Goodwill is admitted subject to an aggregate limitation of ten percent of the capital and surplus in the most recently filed annual statement excluding electronic data processing equipment, operating system software, net deferred income tax assets and net positive goodwill. Excess goodwill is nonadmitted. Goodwill is amortized over ten years. Under GAAP, goodwill is measured as the excess of the consideration transferred plus the fair value of any noncontrolling interest in the acquiree at the acquisition date as compared to the fair values of the identifiable net assets acquired. Goodwill is not amortized but is assessed for impairment on an annual basis, or more frequently if circumstances indicate that a possible impairment has occurred.

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

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

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

Securities Lending Assets and Liabilities: For securities lending programs, cash collateral received which may be sold or repledged by the Company is reflected as a one-line entry on the balance sheet (securities lending reinvested collateral assets) and a corresponding liability is established to record the obligation to return the cash collateral. Collateral received which may not be sold or repledged is not recorded on the Company’s balance sheet. Under GAAP, the reinvested collateral is included within invested assets (i.e. it is not one-line reported).

The effects of the foregoing variances from GAAP on the accompanying statutory-basis financial statements have not been determined by the Company, but are presumed to be material.

16

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

Other significant accounting policies are as follows:

Investments

Investments in bonds, except those to which the SVO has ascribed an NAIC designation of 6, are reported at amortized cost using the interest method.

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

Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method, including anticipated prepayments, except for those with an initial NAIC designation of 6, which are valued at the lower of amortized cost or fair value. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities, which are valued using the prospective method.

The Company closely monitors below investment grade holdings and those investment grade issuers where the Company has concerns. The Company also regularly monitors industry sectors. The Company considers relevant facts and circumstances in evaluating whether the impairment is other-than-temporary including: (1) the probability of the Company collecting all amounts due according to the contractual terms of the security in effect at the date of acquisition; (2) the Company’s decision to sell a security prior to its maturity at an amount below its carrying amount; and (3) the Company’s ability to hold a structured security for a period of time to allow for recovery of the value to its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes are monitored. Non-structured securities in unrealized loss positions that are considered other-than-temporary are written down to fair value. Structured securities considered other-than-temporarily impaired are written down to discounted estimated cash flows if the impairment is the result of cash flow analysis. If the Company has an intent to sell or lack of ability to hold a structured security, it is written down to fair value. For structured securities, cash flow trends and underlying levels of collateral are monitored. The Company will record a charge to the statement of operations to the extent that these securities are determined to be other-than-temporarily impaired.

Investments in preferred stocks in good standing are reported at cost or amortized cost. Investments in preferred stocks not in good standing are reported at the lower of cost or

17

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

fair value, and the related net unrealized capital gains (losses) are reported in unassigned surplus along with any adjustment for federal income taxes.

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

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

Common stocks of affiliated noninsurance subsidiaries are reported based on underlying audited GAAP equity. The net change in the subsidiaries’ equity is included in the change in net unrealized capital gains or losses, reported in unassigned surplus along with any adjustment for federal income taxes.

There are no restrictions on common or preferred stock.

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

Cash equivalents are short-term highly liquid investments with original maturities of three months or less and are principally stated at amortized cost.

Mortgage loans are reported at unpaid principal balances, less an allowance for impairment. A mortgage loan is considered to be impaired when it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines that the impairment is other-than-temporary, the mortgage loan is written down to realizable value and a realized loss is recognized.

Policy loans are reported at unpaid principal balances.

The Company has minority ownership interests in joint ventures and limited partnerships. The Company carries these investments based on its interest in the underlying audited GAAP equity of the investee. For a decline in the fair value of an investment in a joint venture or limited partnership which is determined to be other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the statement of operations. The Company

18

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

considers an impairment to have occurred if it is probable that the Company will be unable to recover the carrying amount of the investment or if there is evidence indicating inability of the investee to sustain earnings which would justify the carrying amount of the investment.

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

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

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

Interest income is recognized on an accrual basis. The Company does not accrue income on bonds in default, mortgage loans on real estate in default and/or foreclosure or which are delinquent more than twelve months, or real estate where rent is in arrears for more than three months. Income is also not accrued when collection is uncertain. In addition, accrued interest is excluded from investment income when payment exceeds 90 days past due. At December 31, 2013 and 2012, the Company excluded investment income due and accrued of $902 and $568, respectively, with respect to such practices.

For dollar repurchase agreements, the Company receives cash collateral in an amount at least equal to the fair value of the securities transferred by the Company in the transaction as of the transaction date. Cash received as collateral will be invested as needed or used for general corporate purposes of the Company.

Derivative Instruments

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

19

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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

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

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

Instruments: Interest rate swaps are the primary derivative financial instruments used in the overall asset/liability management process to modify the interest rate characteristics of the underlying asset or liability. These interest rate swaps generally provide for the exchange of the difference between fixed and floating rate amounts based on an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged at each due date. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If the swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.

20

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

Cross currency swaps are utilized to mitigate risks when the Company holds foreign denominated assets or liabilities therefore converting the asset or liability to a U.S. dollar (USD) denominated security. These cross currency swap agreements involve the exchange of two principal amounts in two different currencies at the prevailing currency rate at contract inception. During the life of the swap, the counterparties exchange fixed or floating rate interest payments in the swapped currencies. At maturity, the principal amounts are again swapped at a pre-determined rate of exchange. Each asset or liability is hedged individually where the terms of the swap must meet the terms of the hedged instrument. For swaps qualifying for hedge accounting, the premium or discount is amortized into income over the life of the contract and the foreign currency translation adjustment is recorded as unrealized gain/loss in unassigned surplus. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus. If a swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the hedged instrument receives that treatment.

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

The Company may purchase foreign denominated assets or issue foreign denominated liabilities and use forward rate agreements to hedge foreign currency risk associated with these products. These forward agreements are marked to the current forward rate on the financial statements and cash payments and/or receipts are recognized as realized gains or losses.

A replication transaction is a derivative transaction entered into in conjunction with a cash instrument to reproduce the investment characteristics of an otherwise permissible investment. The Company replicates investment grade corporate bonds by combining a highly rated security as a cash component with a credit default swap which, in effect, converts the high quality asset into a lower rated investment grade asset. 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. Generally these swaps are carried at amortized cost with periodic interest payments beginning at a future date. Any early terminations are recognized as capital gains or losses. The Company complies with the specific rules established in AVR for replication transactions.

21

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

Separate Accounts

The majority of the separate accounts held by the Company represent funds which are administered for pension plans. The assets in the managed separate accounts consist of common stock, long-term bonds, real estate and short-term investments. The non-managed separate accounts are invested by the Company in a corresponding portfolio of Diversified Investors Portfolios. The portfolios are registered under the Investment Company Act of 1940, as amended, as open-ended, diversified, management investment companies.

Except for some guaranteed separate accounts, which are carried at amortized cost, the assets are carried at fair value, and the investment risks associated with fair value changes are borne entirely by the policyholder. Some of the guaranteed separate accounts provide a guarantee of principal and some include an interest guarantee of 4% or less, so long as the contract is in effect. Separate account asset performance less than guaranteed requirements is transferred from the general account and reported in the statements of operations.

Assets held in trust for purchases of separate account contracts and the Company’s corresponding obligation to the contract owners are shown separately in the balance sheets. Income and gains and losses with respect to these assets accrue to the benefit of the contract owners and, accordingly, the operations of the separate accounts are not included in the accompanying financial statements. The Company received variable contract premiums of $4,481,656, $4,163,452 and $4,218,991, in 2013, 2012 and 2011, respectively. In addition, the Company received $139,375, $125,160 and $114,076, in 2013, 2012 and 2011, respectively, related to fees associated with investment management, administration and contractual guarantees for separate accounts.

Aggregate Reserves for Policies and Contracts

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

The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium for periods beyond the date of death.

The aggregate policy reserves for life insurance policies are based principally upon the 1941, 1958, 1980 and 2001 Commissioners’ Standard Ordinary 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

22

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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

Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Generally, mean reserves are determined by computing the regular mean reserve for the plan at the true age and holding, in addition, one-half (1/2) of the extra premium charge for the year. For certain flexible premium and fixed premium universal life insurance products, reserves are calculated utilizing the Commissioner’s Reserve Valuation Method for universal life policies and recognizing any substandard ratings.

Deferred annuity reserves are calculated according to the Commissioner’s Annuity Reserve Valuation Method including excess interest reserves to cover situations where the future interest guarantees plus the decrease in surrender charges are in excess of the maximum valuation rates of interest. Reserves for immediate annuities and supplementary contracts with and without life contingencies are equal to the present value of future payments assuming interest rates ranging from 3.50 to 11.00 percent and mortality rates, where appropriate, from a variety of tables.

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

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

Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula. On group annuity deposit funds not involving life contingencies, tabular interest has been determined by adjusting the interest credited to group annuity deposits. On other funds not involving life contingencies, tabular interest has been determined by formula.

During 2011, the Company implemented a new actuarial valuation system, ARCVAL. This system allows for a more accurate calculation of continuous reserves and the use of select factors in calculating deficiency reserves. As a result of implementing the new system, the Company recorded a decrease in deficiency and non-deduction reserves of

23

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

$520, which had a corresponding adjustment to unassigned surplus.

Policy and Contract Claim Reserves

Claim reserves represent the estimated accrued liability for claims reported to the Company and claims incurred but not yet reported through the balance sheet date. These reserves are estimated using either individual case-basis valuations or statistical analysis techniques. These estimates are subject to the effects of trends in claim severity and frequency. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes available.

Liability for Deposit-Type Contracts

Deposit-type contracts do not incorporate risk from the death or disability of policyholders. These types of contracts may include GICs, funding agreements and other annuity contracts. Deposits and withdrawals on these contracts are recorded as a direct increase or decrease, respectively, to the liability balance, and are not reported as premiums, benefits or changes in reserves in the statement of operations.

Premiums and Annuity Considerations

Revenues for policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received and are recognized over the premium paying periods of the related policies. Considerations received and benefits paid for annuity policies without mortality or morbidity risk are recorded using deposit accounting, and recorded directly to an appropriate policy reserve account, without recognizing premium revenue.

Claims and Claim Adjustment Expense

Liabilities for losses and loss/claim adjustment expenses for accident and health contracts are estimated using statistical claim development models to develop best estimates of liabilities for medical expense business and using tabular reserves employing mortality/morbidity tables and discount rates meeting minimum regulatory requirements for other business.

24

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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

	Unpaid Claims
	Liability							Unpaid Claims
	Beginning		Claims			Claims		Liability End
	of Year		Incurred			Paid		of Year
Year ended December 31, 2013
2013	$	—	$	51,583		$	25,596	$	25,987
2012 and prior		33,843		(5,347	)		20,270		8,226
		33,843	$	46,236		$	45,866		34,213
Active life reserve		103,059							108,146
Total accident and health reserves	$	136,902						$	142,359
	Unpaid Claims
	Liability							Unpaid Claims
	Beginning		Claims			Claims		Liability End
	of Year		Incurred			Paid		of Year
Year ended December 31, 2012
2012	$	—	$	50,385		$	24,865	$	25,520
2011 and prior		36,644		(8,194	)		20,127		8,323
		36,644	$	42,191		$	44,992		33,843
Active life reserve		99,571							103,059
Total accident and health reserves	$	136,215						$	136,902

The Company’s unpaid claims reserve was decreased by $5,347 and $8,194 for the years ended December 31, 2013 and 2012, respectively, for health claims that occurred prior to those balance sheet dates. The change in 2013 and 2012 resulted primarily from variances in the estimated frequency of claims and claim severity.

The balance in the liability for unpaid accident and health claim adjustment expenses as of December 31, 2013 and 2012 was $740 and $714, respectively. The Company incurred $1,305 and paid $1,279 of claim adjustment expenses during 2013, of which $626 of the paid amount was attributable to insured or covered events of prior years. The Company incurred $473 and paid $580 of claim adjustment expenses during 2012, of which $264 of the paid amount was attributable to insured or covered events of prior years. The Company did not increase or decrease the claim adjustment expense provision for insured events of prior years during 2013 or 2012.

25

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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.

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

SSAP No. 61, Life, Deposit-Type and Accident and Health Reinsurance, defines novation agreements as one which extinguishes one entity’s liability and moves it to another entity, which is applicable under this situation. The retrocession agreement had all references to the Company removed and replaced with SCOR upon completion of the novations. SSAP No. 61 does not specifically address novation and releases related to retrocession agreements, however as both cedents and retrocessionaires in this situation are a party to the agreement, the intent of the novation and release appears to be consistent with the application for direct cedents application of the standard. Therefore, the Company reported the novation and release similar to a novation, as outlined in paragraphs 53-56 of SSAP No. 61, with direct adjustments to the balance sheet.

Recent Accounting Pronouncements

Effective December 31, 2013, the Company adopted revisions to SSAP No. 35R, Guaranty Fund and Other Assessments – Revised which incorporates subsequent event (Type II) disclosures for entities subject to Section 9010 of the Patient Protection and Affordable Care Act related to assessments payable. The adoption of this revision did not impact the financial position or results of operations of the Company as revisions relate to disclosures only. See Note 16 for further discussion.

26

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

Effective January 1, 2013, the Company adopted SSAP No. 92, Accounting for Postretirement Benefits Other Than Pensions, A Replacement of SSAP No. 14 and SSAP No. 102, Accounting for Pensions, A Replacement of SSAP No. 89. This guidance impacts accounting for defined benefit pension plans or other postretirement plans, along with related disclosures. SSAP No. 102 requires recognition of the funded status of the plan based on the projected benefit obligation instead of the accumulated benefit obligation as under SSAP No. 89. In addition, SSAP No. 92 and SSAP No. 102 require consideration of non-vested participants. The adoption of these standards did not impact the Company’s results of operations, financial position or disclosures as the Company does not sponsor the pension plan and is not directly liable under the plan. See Note 11 for further discussion of the Company’s pension plan and other postretirement plans as sponsored by Aegon.

Effective January 1, 2013, the Company adopted SSAP No. 103, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities which adopts with modifications the guidance in Accounting Standards Update (ASU) 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets and supersedes SSAP No. 91R, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. The adoption of this standard did not impact the financial position or results of operations of the Company.

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

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

Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 86 to move one aspect of the criteria for a hedged forecasted transaction and

27

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

incorporate it as criteria for a fair value hedge. The adoption of this revision had no impact to the Company’s results of operations or financial position.

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

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

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

Effective January 1, 2012, the Company began computing current and deferred income taxes in accordance with SSAP No. 101. This statement established statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. The adoption of this statement resulted in the transfer of $27,930 at December 31, 2011, from Aggregate Write-ins for Other than Special Surplus Funds to Unassigned Funds and updates to the Company’s income tax disclosures. See Note 7 Income Taxes for further details.

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

28

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

additional deferred tax assets (DTAs) utilizing a three year loss carryback provision, plus the lesser of a look-forward of three years on gross DTAs expected to be realized or 15% of statutory capital and surplus if the entity’s risk-based capital is above the 250% risk-based capital level where an action level could occur as a result of a trend test utilizing the old SSAP No. 10 provisions to calculate the DTA. Prior to the adoption of SSAP No. 10R, the admitted DTA was calculated by taking into consideration a one year loss carryback and look-forward on gross DTAs that can be expected to be realized and a 10% capital and surplus limit on the admitted amount of the DTA. The Company elected to admit additional deferred tax assets pursuant to SSAP No. 10R and as a result, the cumulative effect of the adoption of this standard was the difference between the calculation of the admitted DTA per SSAP No.10R and the old SSAP No. 10 methodology at December 31, 2011. This change in accounting principle increased surplus by a net amount of $27,930, at December 31, 2011, which has been recorded within the statements of changes in capital and surplus.

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

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

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

29

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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

Effective January 1, 2011, the Company adopted SSAP No. 35R, Guaranty Fund and Other Assessments – Revised. This statement modified the conditions required for recognizing a liability for insurance-related assessments and required additional disclosures. See Note 14 for disclosures related to guaranty fund assessments. The adoption of this accounting principle had no financial impact to the Company.

Effective January 1, 2011, the Company adopted revisions to certain paragraphs of SSAP No. 43R, Loan-backed and Structured Securities to clarify the accounting for gains and losses between AVR and IMR. The revisions clarify that an AVR/IMR bifurcation analysis should be performed when SSAP No. 43R securities are sold (not just as a result of impairment). These changes were applied on a prospective basis and had no financial impact to the Company upon adoption.

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

Effective January 1, 2014, the Company will adopt SSAP No. 105, Working Capital finance Investments, which allows working capital finance investments to be admitted assets if certain criteria are met. The adoption of this standard had no impact to the financial position or results of operations of the Company.

Effective December 31, 2014, the Company will adopt revisions of SSAP No. 104R, Share-Based Payments, which provides guidance for share-based payments transactions with non-employees. The adoption of this revision is expected to be immaterial to the financial position and results of operations of the Company.

2. Prescribed and Permitted Statutory Accounting Practices

The New York Department of Financial Services 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.

30

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

The State of New York 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 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 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.

3. Accounting Changes and Correction of Errors

During 2013, the Company discovered an investment in a guaranteed investment contract within the Company’s separate account was not included in the calculation of the AVR as of December 31, 2012. The impact of this omission was an understatement of the asset valuation reserve and overstatement of capital and surplus of $5,080 as of December 31, 2012. This was corrected in 2013 and is reflected as a correction of an error in the capital and surplus accounts of the Summary of Operations.

During 2012, the Company determined that the model used for a particular guaranteed minimum withdrawal benefit product was not appropriately calculating the correct policyholder benefit guarantee values which are used when determining benefit reserves. The correction of this error resulted in an increase in the reserves associated with this product in the amount of $19,946 as of December 31, 2011, and is presented as a separate charge in capital and surplus within the statement of changes in capital and surplus.

The Company incorrectly calculated the mortgages component of the AVR as of December 31, 2010. The maximum Mortgage Experience Adjustment Factor (MEAF) was used in the calculation when lower factors should have been used. As a result, the AVR balance was overstated by $6,248. This was corrected in 2011, and the Company reflected the surplus impact of the correction as a separate change in unassigned surplus within the statement of changes in capital and surplus.

During 2011, the Company determined that too many contracts were novated to TLIC, an affiliated company, in a reinsurance transaction that was effective January 1, 2010. Correcting this error resulted in a reduction in the initial gain recognized on the novation of $7,765, partially offset by an adjustment to the statement of operations for retention of the policies that should have been retained by the Company of $5,175. The net amount of $2,590 is reflected as a separate change in unassigned surplus within the statement of changes in capital and surplus.

31

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

4. Fair Values of Financial Instruments

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

Determination of fair value

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

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

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

Fair value hierarchy

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

32

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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 approximate their fair values. Cash is not included in the below tables.

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

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

33

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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

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

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

Derivative Financial Instruments: The estimated fair values of interest rate caps and options are based upon the latest quoted market price at the balance sheet date. The estimated fair values of swaps, including interest rate and currency swaps are based on pricing models or formulas using current assumptions. The estimated fair value of credit default swaps are based upon the pricing differential as of the balance sheet date for similar swap agreements. 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 fair value of policy loans is equal to the book value of the loan, which is stated at unpaid principal balance.

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

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

Separate Account Assets and Annuity Liabilities: The fair value of separate account assets are based on quoted market prices when available. When not available, they are primarily valued either using third party pricing services or are valued in the same manner as the

34

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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.

Surplus Notes: Fair values for surplus notes are estimated using a discounted cash flow analysis based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements.

The Company accounts for its investments in affiliated common stock using the equity method of accounting; as such, they are not included in the following disclosures.

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.

35

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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, 2013 and 2012, respectively:

	December 31 2013
	Estimated Fair Value			Admitted Assets		(Level 1)		(Level 2)			(Level 3)		Not Practicable (Carrying Value)
Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	67,194		$	67,194	$	—	$	67,194		$	—	$	—
Short-term notes receivable from affiliates		50,000			50,000		—		50,000			—		—
Bonds		7,922,846			7,614,084		710,978		7,083,570			128,298		—
Preferred stocks, other than affiliates		2,715			1,706		—		2,715			—		—
Common stocks, other than affiliates		1,954			1,954		1,954		—					—
Mortgage loans on real estate		570,933			551,082		—		—			570,933		—
Other invested assets		27,482			25,613		—		27,482			—		—
Interest rate swaps		12,436			12,436		—		12,436			—		—
Currency swaps		254			254		—		254			—		—
Credit default swaps		5,751			3,250		—		5,751			—		—
Policy loans		64,552			64,552		—		64,552			—		—
Securities lending reinvested collateral		430,659			430,678		—		430,659			—		—
Separate account assets		20,271,856			20,293,235		10,592,553		9,637,890			41,413		—
Liabilities
Investment contract liabilities		5,652,539			5,584,149		—		1,353			5,651,186		—
Interest rate swaps		38,846			44,714		—		38,846			—		—
Currency swaps		1,622			1,476		—		1,622			—		—
Credit default swaps		(1,703	)		6,140		—		(1,703	)		—		—
Equity Swaps		853			853		—		853			—		—
Payable to parent, subsidiaries and affiliates		365			365		—		365			—		—
Separate account annuity liabilities		19,918,930			19,912,005		—		12,644,802			7,274,127		—
Surplus notes		156,810			150,000		—		—			156,810		—

36

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	December 31
	2012
	Estimated Fair Value		Admitted Assets		(Level 1)		(Level 2)		(Level 3)		Not Practicable (Carrying Value)
Admitted assets
Cash equivalents and short-term investments, other than affiliates	$	528,981	$	528,981	$	—	$	528,981	$	—	$	—
Short-term notes receivable from affiliates		54,700		54,700		—		54,700		—		—
Bonds		8,191,209		7,413,206		726,198		7,397,594		67,417		—
Preferred stocks, other than affiliates		2,241		1,573		—		2,241		—		—
Common stocks, other than affiliates		5,113		5,113		3,111		—		2,002		—
Mortgage loans on real estate		581,335		544,544		—		—		581,335		—
Other invested assets		20,653		19,088		—		20,653		—		—
Interest rate swaps		39,746		39,331		—		39,746		—		—
Currency swaps		142		—		—		142		—		—
Credit default swaps		3,083		1,399		—		3,083		—		—
Foreign currency forward		883		883		—		883		—		—
Policy loans		60,041		60,041		—		60,041		—		—
Securities lending reinvested collateral		257,972		258,143		—		257,972		—		—
Receivable from parent, subsidiaries and affiliates		87,032		87,032		—		87,032		—		—
Separate account assets		17,781,262		17,590,145		7,982,621		9,726,976		71,665		—
Liabilities
Investment contract liabilities		5,989,132		5,953,575		—		3,481,554		2,507,578		—
Interest rate swaps		7,024		5,575		—		7,024		—		—
Currency swaps		—		153		—		—		—		—
Credit default swaps		2,946		5,743		—		2,946		—		—
Foreign currency forward		1,233		1,233		—		1,233		—		—
Separate account annuity liabilities		17,231,486		17,204,274		—		9,936,870		7,294,616		—
Surplus notes		167,085		150,000		—		—		167,085		—

37

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

The following tables provide information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2013 and 2012:

	2013
	Level 1		Level 2		Level 3		Total
Assets:
Bonds
Government	$	—	$	15,501	$	—	$	15,501
Industrial and miscellaneous		—		4,708		9,714		14,422
Total bonds		—		20,209		9,714		29,923
Common stock
Industrial and miscellaneous		1,954		—		—		1,954
Total common stock		1,954		—		—		1,954
Short-term investments
Government		—		1		—		1
Industrial and miscellaneous		—		500		—		500
Money market mutual fund		—		66,693		—		66,693
Intercompany notes		—		50,000		—		50,000
Total short-term		—		117,194		—		117,194
Derivative assets		—		12,690		—		12,690
Separate account assets		10,592,553		2,490,653		—		13,083,206
Total assets at fair value	$	10,594,507	$	2,640,746	$	9,714	$	13,244,967
Liabilities:
Derivative liabilities	$	—	$	41,321	$	—	$	41,321
Total liabilites at fair value	$	—	$	41,321	$	—	$	41,321

38

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	2012
	Level 1		Level 2		Level 3		Total
Assets:
Bonds
Industrial and miscellaneous	$	—	$	6,412	$	11,390	$	17,802
Total bonds		—		6,412		11,390		17,802
Common stock
Industrial and miscellaneous		3,111		—		2,002		5,113
Total common stock		3,111		—		2,002		5,113
Short-term investments
Government		—		1		—		1
Industrial and miscellaneous		—		446,681		—		446,681
Money market mutual fund		—		82,102		—		82,102
Intercompany notes		—		54,700		—		54,700
Sweep account		—		196		—		196
Total short-term		—		583,680		—		583,680
Derivative assets		—		34,734		—		34,734
Separate account assets		7,982,621		2,388,209		—		10,370,830
Total assets at fair value	$	7,985,732	$	3,013,035	$	13,392	$	11,012,159
Liabilities:
Derivative liabilities	$	—	$	350	$	—	$	350
Total liabilites at fair value	$	—	$	350	$	—	$	350

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

Common stock in Level 3 is comprised primarily of warrants valued using broker quotes.

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

Derivatives classified as Level 2 represent over-the-counter (OTC) contracts valued using pricing models based on the net present value of estimated future cash flows, directly observed prices from exchange-traded derivatives, other OTC trades or external pricing services.

Separate account assets in Level 2 are valued using inputs from third party pricing services or are valued and classified in the same way as general account assets (described above).

39

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

During 2013 and 2012, there were no transfers between Level 1 and 2, respectively.

The following tables summarize the changes in assets classified in Level 3 for 2013 and 2012:

	Balance at January 1, 2013		Transfers into Level 3		Transfers out of Level 3		Total Gains and (Losses) Included in Net income (a)			Total Gains and (Losses) Included in Surplus (b)
Bonds
RMBS	$	723	$	—	$	245	$	(254	)	$	203
Other		10,667		—		—		(415	)		667
Common stock		2,002		—		—		—			(1,196	)
Total	$	13,392	$	—	$	245	$	(669	)	$	(326	)
	Purchases		Issuances		Sales		Settlements			Balance at December 31, 2013
Bonds
RMBS	$	—	$	—	$	—	$	—		$	427
Other		—		—		—		1,632			9,287
Common stock		—		—		80		726			—
Total	$	—	$	—	$	80	$	2,358		$	9,714

40

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	Balance at January 1, 2012		Transfers into Level 3		Transfers out of Level 3		Total Gains and (Losses) Included in Net income (a)			Total Gains and (Losses) Included in Surplus (b)
Bonds
RMBS	$	1,076	$	1,237	$	605	$	(1,599	)	$	979
Other		9,902		—		—		337			2,165
Common stock		3,496		—		—		—			(1,494	)
Total	$	14,474	$	1,237	$	605	$	(1,262	)	$	1,650
	Purchases		Issuances		Sales		Settlements			Balance at December 31, 2012
Bonds
RMBS	$	—	$	—	$	—	$	365		$	723
Other		—		—		—		1,737			10,667
Common stock		—		—		—		—			2,002
Total	$	—	$	—	$	—	$	2,102		$	13,392

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

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

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

Transfers in for bonds were attributable to securities being valued using third party vendor inputs at December 31, 2011, subsequently changing to being internally modeled, thus causing the transfer into Level 3 during 2012.

Transfers out for bonds were partly attributable to securities being valued using broker quotes which utilize unobservable inputs at December 31, 2012, subsequently changing to being valued using third party vendor inputs during 2013. In addition, transfers out for bonds were the result of securities being valued using internal models at December 31, 2011, subsequently changing to being valued using third party vendor inputs during 2012. Also, transfers out for bonds were attributed to securities being carried at fair value at December 31, 2011, subsequently changing to being carried at amortized cost during 2012.

41

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

5. Investments

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

					Gross		Gross
					Unrealized		Unrealized
			Gross		Losses 12		Losses less		Estimated
	Carrying		Unrealized		Months or		Than 12		Fair
	Amount		Gains		More		Months		Value
December 31, 2013
Unaffiliated bonds:
United States Government and agencies	$	723,664	$	20,596	$	35	$	39,791	$	704,434
State, municipal and other government		156,405		7,460		4,755		666		158,444
Hybrid securities		99,366		6,415		5,476		154		100,151
Industrial and miscellaneous		5,206,107		327,974		9,109		49,457		5,475,515
Mortgage and other asset-backed securities		1,428,542		81,874		13,044		13,070		1,484,302
		7,614,084		444,319		32,419		103,138		7,922,846
Unaffiliated preferred stocks		1,706		1,009		—		—		2,715
	$	7,615,790	$	445,328	$	32,419	$	103,138	$	7,925,561
	Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses 12 Months or More		Gross Unrealized Losses less Than 12 Months		Estimated Fair Value
December 31, 2012
Unaffiliated bonds:
United States Government and agencies	$	612,515	$	101,850	$	—	$	1	$	714,364
State, municipal and other government		168,249		20,558		8,472		—		180,335
Hybrid securities		92,265		7,277		10,909		—		88,633
Industrial and miscellaneous		5,005,463		583,125		1,170		3,833		5,583,585
Mortgage and other asset-backed securities		1,534,714		114,427		23,912		937		1,624,292
		7,413,206		827,237		44,463		4,771		8,191,209
Unaffiliated preferred stocks		1,573		1,049		381		—		2,241
	$	7,414,779	$	828,286	$	44,844	$	4,771	$	8,193,450

At December 31, 2013 and 2012, 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 76 and 80 securities with a carrying amount of $281,161 and $266,840 and an unrealized loss of $32,419 and $44,844 with an average price of 88.5 and 83.2 (fair

42

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

value/amortized cost). Of this portfolio, 70.19% and 48.05% were investment grade with associated unrealized losses of $19,689 and $20,046, respectively.

At December 31, 2013 and 2012, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 291 and 55 securities with a carrying amount of $1,860,688 and $234,770 and an unrealized loss of $103,138 and $4,771 with an average price of 94.5 and 98.0 (fair value/amortized cost). Of this portfolio, 96.86% and 76.98% were investment grade with associated unrealized losses of $100,950 and $3,649, respectively.

At December 31, 2013, for common stocks that have been in a continuous loss position for greater than or equal twelve months, the Company held 1 security with a cost of $4 and unrealized loss of $1 with an average price of 77.0 (fair value/cost). At December 31, 2012, the Company did not hold any common stock that had been in a continuous loss position for greater than or equal to twelve months.

At December 31, 2013, the Company did not hold any common stocks that had been in continuous loss position for less than twelve months. At December 31, 2012, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 3 securities with a cost of $3,145 and unrealized loss $33 with an average price of 99.0 (fair value/cost).

The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2013 and 2012 is as follows:

	Losses 12		Losses Less
	Months or		Than 12
	More		Months		Total
December 31, 2013
Unaffiliated bonds:
United States government and agencies	$	1,830	$	362,949	$	364,779
State, municipal and other government		14,235		25,206		39,441
Hybrid securities		20,128		11,171		31,299
Industrial and miscellaneous		91,554		1,051,181		1,142,735
Mortgage and other asset-backed securities		120,995		307,043		428,038
		248,742		1,757,550		2,006,292
Unaffiliated common stocks		3		—		3
	$	248,745	$	1,757,550	$	2,006,295

43

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	Losses 12		Losses Less
	Months or		Than 12
	More		Months		Total
December 31, 2012
Unaffiliated bonds:
United States government and agencies	$	—	$	1,863	$	1,863
State, municipal and other government		36,512		—		36,512
Hybrid securities		22,250		—		22,250
Industrial and miscellaneous		17,474		172,884		190,358
Mortgage and other asset-backed securities		145,029		55,252		200,281
		221,265		229,999		451,264
Unaffiliated preferred stocks		731		—		731
Unaffiliated common stocks		—		3,112		3,112
	$	221,996	$	233,111	$	455,107

The carrying amount and estimated fair value of bonds at December 31, 2013, by contractual maturity, is shown below. Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

			Estimated
	Carrying		Fair
	Amount		Value
Due in one year or less	$	518,442	$	528,302
Due after one year through five years		2,192,012		2,367,366
Due after five years through ten years		1,933,729		1,956,804
Due after ten years		1,541,359		1,586,072
		6,185,542		6,438,544
Mortgage and other asset-backed securities		1,428,542		1,484,302
	$	7,614,084	$	7,922,846

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

At December 31, 2013, the Company’s treasury portfolio had investments in an unrealized loss position which had a fair value of $364,779, with a carrying value of $404,605, resulting in a gross unrealized loss of $39,826. The Company’s government issued debt securities include US Treasury bonds. All of the issuers in the sector continue to make payments in accordance with the original bond agreements. The Company evaluated the near-term prospects of the issuers and it is believed that the contractual terms of these investments will be met and these investments are not impaired as of December 31, 2013.

44

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

There were no loan-backed securities with a recognized other-than-temporary impairment (OTTI) due to intent to sell or lack of intent and ability to hold during the years ended December 31, 2013 and 2012. The following table provides the aggregate totals for loan-backed securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold, in which the security is written down to fair value during the year ended December 31, 2011.

	Amortized Cost		OTTI Recognized in Loss
	Basis Before OTTI		Interest		Non-interest		Fair Value
Year Ended December 31, 2011
OTTI recognized 1st quarter:
Intent to sell	$	1,800	$	3	$	—	$	1,797
Total 1st quarter OTTI on loan-backed securities		1,800		3		—		1,797
Aggregate total	$	1,800	$	3	$	—	$	1,797

The following tables provide the aggregate totals for loan-backed securities with a recognized OTTI due to the Company’s cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield.

	Amortized Cost before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year Ended December 31, 2013
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	33,255	$	937	$	32,318	$	26,145
2nd quarter present value of cash flows expected to be less than the amortized cost basis		12,311		571		11,740		11,175
3rd quarter present value of cashflows expected to be less than the amortized cost basis		16,824		1,426		15,398		12,815
4th quarter present value of cash flows expected to be less than the amortized cost basis		30,853		1,080		29,773		27,584
Aggregate total	$	93,243	$	4,014	$	89,229	$	77,719

45

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	Amortized Cost before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year Ended December 31, 2012
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	9,907	$	123	$	9,784	$	5,625
2nd quarter present value of cash flows expected to be less than the amortized cost basis		31,773		3,092		28,681		20,633
3rd quarter present value of cash flows expected to be less than the amortized cost basis		17,199		1,222		15,977		10,640
4th quarter present value of cash flows expected to be less than the amortized cost basis		22,099		921		21,178		15,312
Aggregate total	$	80,978	$	5,358	$	75,620	$	52,210
	Amortized Cost before Current Period OTTI		Recognized OTTI		Amortized Cost After OTTI		Fair Value
Year Ended December 31, 2011
1st quarter present value of cash flows expected to be less than the amortized cost basis	$	36,356	$	988	$	35,368	$	23,938
2nd quarter present value of cash flows expected to be less than the amortized cost basis		32,000		3,301		28,699		16,513
3rd quarter present value of cash flows expected to be less than the amortized cost basis		44,931		807		44,124		28,144
4th quarter present value of cash flows expected to be less than the amortized cost basis		54,257		2,573		51,684		41,432
Aggregate total	$	167,544	$	7,669	$	159,875	$	110,027

46

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

The following loan-backed and structured securities were held at December 31, 2013, 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		Quarter in which Impairment Occurred
02148YAJ3		336		327		9		327		180		1Q2013
14984WAA8		11,205		10,969		236		10,969		10,570		1Q2013
52108HV84		1,723		1,680		43		1,680		1,004		1Q2013
52524YAA1		72		—		72		—		—		1Q2013
759676AJ8		6,182		6,091		91		6,091		4,528		1Q2013
75970JAJ5		7,426		7,316		110		7,316		6,192		1Q2013
81379EAD4		5		—		5		—		—		1Q2013
81744FFD4		496		410		86		410		121		1Q2013
86358EZU3		1,628		1,411		217		1,411		267		1Q2013
12669GUR0		4,183		4,113		70		4,113		3,281		1Q2013
14984WAA8		10,701		10,522		179		10,522		10,201		2Q2013
52108HV84		1,611		1,218		393		1,218		973		2Q2013
52108HV84		1,218		701		517		701		994		3Q2013
59020UJZ9		261		172		89		172		406		3Q2013
759676AJ8		5,727		5,618		109		5,618		4,708		3Q2013
75970JAJ5		7,093		6,936		157		6,936		5,833		3Q2013
75970QAH3		674		657		17		657		576		3Q2013
81744FFD4		407		354		53		354		117		3Q2013
86358EZU3		1,393		941		452		941		168		3Q2013
291701CR9		50		18		32		18		14		3Q2013
12666UAC7		8,154		7,984		170		7,984		7,978		4Q2013
12668WAC1		7,972		7,700		272		7,700		7,133		4Q2013
759676AJ8		5,272		5,102		170		5,102		4,541		4Q2013
75970JAJ5		6,838		6,525		313		6,525		5,628		4Q2013
75970QAH3		650		619		31		619		575		4Q2013
81744FFD4		354		345		9		345		122		4Q2013
86358EZU3		105		97		8		97		15		4Q2013
12640WAG5		1,491		1,384		107		1,384		1,578		4Q2013
291701CR9		17		16		1		16		14		4Q2013

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, 2013 and 2012 is as follows:

	Losses 12 Months or More		Losses Less Than 12 Months
Year ended December 31, 2013
The aggregate amount of unrealized losses	$	17,238	$	13,316
The aggregate related fair value of securities with unrealized losses		134,946		307,514

47

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	Losses 12 Months or More		Losses Less Than 12 Months
Year ended December 31, 2012
The aggregate amount of unrealized losses	$	33,297	$	937
The aggregate related fair value of securities with unrealized losses		162,801		55,252

Detail of net investment income is presented below:

	Year Ended December 31
	2013		2012		2011
Income:
Bonds	$	359,479	$	372,298	$	396,157
Preferred stocks		123		130		148
Common stocks		—		1,693		1,302
Mortgage loans on real estate		32,624		39,468		44,625
Policy loans		4,081		4,038		4,034
Cash, cash equivalents and short-term investments		427		765		929
Derivatives		18,515		19,915		24,901
Other invested assets		2,873		639		2,548
Other		1,953		2,929		1,921
Gross investment income		420,075		441,875		476,565
Less investment expenses		13,195		14,747		13,035
Net investment income	$	406,880	$	427,128	$	463,530

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

	Year Ended December 31
	2013			2012			2011
Proceeds	$	1,131,813		$	1,913,219		$	1,636,561
Gross realized gains	$	16,348		$	68,650		$	44,316
Gross realized losses		(6,761	)		(9,531	)		(6,781	)
Net realized capital gains	$	9,586		$	59,119		$	37,535

The Company had gross realized losses for the years ended December 31, 2013, 2012 and 2011 of $4,299, $6,205 and $10,422, respectively, which relate to losses recognized on other-than-temporary declines in fair values of bonds and preferred stocks.

48

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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

	Realized
	Year Ended December 31
	2013			2012			2011
Bonds	$	5,397		$	52,800		$	27,113
Preferred stocks		(110	)		115			—
Common stocks		74			91			(995	)
Mortgage loans on real estate		(123	)		(1,020	)		290
Cash, cash equivalents and short-term investments		3			3			—
Derivatives		(65,675	)		9,224			(32,729	)
Other invested assets		4,140			3,939			3,074
		(56,294	)		65,152			(3,247	)
Federal income tax effect		(4,221	)		(17,772	)		(15,802	)
Transfer to interest maintenance reserve		(7,377	)		(38,563	)		(23,955	)
Net realized capital gains (losses) on investments	$	(67,892	)	$	8,817		$	(43,004	)

At December 31, 2013 and 2012, the Company had recorded investment in restructured securities of $32 and $2,940, respectively. The capital gains (losses) taken as a direct result of restructures in 2013, 2012 and 2011 were $(16), $886 and $(603), respectively. The Company often has impaired a security prior to the restructure date. These impairments are not included in the calculation of restructure related losses and are accounted for as a realized loss, reducing the cost basis of the security involved.

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

	Change in Unrealized
	Year Ended December 31
	2013			2012			2011
Bonds	$	1,542		$	12,303		$	(7,611	)
Common stocks		(825	)		(1,627	)		(1,216	)
Affiliated entities		(754	)		(45	)		(145	)
Derivatives		(67,606	)		(87,646	)		81,675
Other invested assets		(330	)		5,277			1,233
		(67,973	)		(71,738	)		73,936
Taxes on unrealized capital gains/losses		23,527			25,092			(25,928	)
Change in unrealized capital gains (losses), net of tax	$	(44,446	)	$	(46,646	)	$	48,008

49

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

The credit quality of mortgage loans by type of property for the year ended December 31, 2013 were as follows:

	Farm		Commercial		Total
AAA—AA	$	16,000	$	332,597	$	348,597
A		7,073		173,894		180,967
BBB		4,133		14,990		19,123
BB		—		1,976		1,976
B		—		419		419
	$	27,206	$	523,876	$	551,082

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 2013, the Company issued mortgage loans with a maximum interest rate of 5.31% and a minimum interest rate of 3.11% for commercial loans. During 2012, the Company issued mortgage loans with a maximum interest rate of 4.60% and a minimum interest rate of 3.21% 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, 2013 at the time of origination was 75%. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated during the year ending December 31, 2012 at the time of origination was 70%. During 2013, the Company did not reduce the interest rate on any outstanding mortgage loan. During 2012, the Company reduced the interest rate by 1.0% of one outstanding mortgage loan in the amount of $8,362.

50

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

The following tables provide the age analysis of mortgage loans aggregated by type:

			Residential				Commercial
December 31, 2013	Farm		Insured		All Other		Insured		All Other		Mezzanine		Total
Recorded Investment (All)
(a) Current	$	27,206	$	—	$	—	$	—	$	521,637	$	2,239	$	551,082
(b) 30-59 Days Past Due		—		—		—		—		—		—		—
(c) 60-89 Days Past Due		—		—		—		—		—		—		—
(d) 90-179 Days Past Due		—		—		—		—		—		—		—
(e) 180+ Days Past Due		—		—		—		—		—		—		—

			Residential				Commercial
December 31, 2012	Farm		Insured		All Other		Insured		All Other		Mezzanine		Total
Recorded Investment (All)
(a) Current	$	40,383	$	—	$	—	$	—	$	500,423	$	2,231	$	543,037
(b) 30-59 Days Past Due		—		—		—		—		1,507		2		1,509
(c) 60-89 Days Past Due		—		—		—		—		—		—		—
(d) 90-179 Days Past Due		—		—		—		—		—		—		—
(e) 180+ Days Past Due		—		—		—		—		—		—		—

The Company did not have any impaired loans at December 31, 2013 or 2012. The Company did not hold an allowance for credit losses on mortgage loans at December 31, 2013, 2012 or 2011.

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. The Company did not recognize any interest income on impaired loans for the years ended December 31, 2013, 2012 or 2011. The Company did not recognize any interest income on a cash basis for the years ended December 31, 2013, 2012 or 2011.

During 2013 and 2012, there were no mortgage loans that were foreclosed and transferred to real estate. At December 31, 2013 and 2012, the Company held a mortgage loan loss reserve in the AVR of $7,164 and $5,173, respectively.

51

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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
	2013			2012				2013			2012
Mountain		22	%		21	%	Retail		32	%		32	%
Pacific		17			16		Industrial		32			25
W. South Central		16			13		Office		17			16
South Atlantic		13			23		Apartment		6			5
Middle Atlantic		12			16		Medical		5			5
W. North Central		10			1		Agricultural		5			7
E. North Central		7			6		Other		3			10
E. South Central		2			3
New England		1			1

During 2013, 2012 and 2011, the Company did not recognize any impairment write-downs for its investments in joint ventures and limited partnerships.

At December 31, 2013, the Company had ownership interest in four LIHTC investments. The remaining years of unexpired tax credits ranged from three to eleven and the properties were not subject to regulatory review. The length of time remaining for the holding period ranged from four to thirteen years. The amount of contingent equity commitments expected to be paid during 2014 to 2015 is $9,559. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

At December 31, 2012, the Company had ownership interest in three LIHTC investments. The remaining years of unexpired tax credits ranged from four to ten and the properties were not subject to regulatory review. The length of time remaining for the holding period ranged from five to fourteen years. The amount of contingent equity commitments expected to be paid during 2013 was $2,127. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.

The Company recognized net realized gains (losses) from futures contracts in the amount of $(70,734), $77,308 and $(38,303) for the years ended December 31, 2013, 2012 and 2011, respectively.

At December 31, 2013 and 2012, the Company had replicated assets with a fair value of $515,990 and $462,061, respectively, and credit default swaps with a fair value of $7,454 and $137, respectively. The Company did not recognize any capital losses related to replication transactions in 2013 or 2011, while the Company recognized capital losses of $1,477 in 2012.

52

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

As stated in Note 1, the Company replicates investment grade corporate bonds by writing credit default swaps. As a writer of credit swaps, the Company actively monitors the underlying asset, being careful to note any events (default or similar credit event) that would require the Company to perform on the credit swap. If such events would take place, the Company has recourse provisions from the proceeds of the bankruptcy settlement of the underlying entity or by the sale of the underlying bond. As of December 31, 2013, credit default swaps, used in replicating corporate bonds are as follows:

Deal, Receive (Pay), Underlying	Maturity Date		Maximum Future Payout (Estimated)		Current Fair Value
51408,SWAP, USD 1 / (USD 0), :US670346AE56		3/20/2016	$	10,000	$	186
59020,SWAP, USD 1 / (USD 0), :US534187AM15		9/20/2016		20,000		287
51410,SWAP, USD 1 / (USD 0), :US168863AS74		3/20/2017		10,000		133
51409,SWAP, USD 1 / (USD 0), :XS0203685788		3/20/2017		11,000		197
51412,SWAP, USD 1 / (USD 0), :US50064FAD69		3/20/2017		10,000		198
51411,SWAP, USD 1 / (USD 0), :USY6826RAA06		3/20/2017		12,000		136
51413,SWAP, USD 1 / (USD 0), :US168863AS74		3/20/2017		10,000		133
51414,SWAP, USD 1 / (USD 0), :CDX IG 18		6/20/2017		20,000		430
51415,SWAP, USD 1 / (USD 0), :CDX IG 18		6/20/2017		20,000		430
43375,SWAP, USD 1 / (USD 0), :CDX IG 18		6/20/2017		5,000		107
51416,SWAP, USD 1 / (USD 0), :US836205AJ33		9/20/2017		8,500		(204	)
51417,SWAP, USD 1 / (USD 0), :XS0114288789		9/20/2017		2,200		(25	)
51418,SWAP, USD 1 / (USD 0), :US105756AL40		9/20/2017		3,200		(65	)
43612,SWAP, USD 1 / (USD 0), :US455780AQ93		9/20/2017		2,000		(53	)
46258,SWAP, USD 1 / (USD 0), :912828TJ9		12/20/2017		15,000		(209	)
46320,SWAP, USD 1 / (USD 0), :912828TJ9		12/20/2017		15,000		(352	)
46421,SWAP, USD 1 / (USD 0), :912828TJ9		12/20/2017		15,000		176
46535,SWAP, USD 1 / (USD 0), :912828TJ9		12/20/2017		15,000		(560	)
46616,SWAP, USD 1 / (USD 0), :912828TJ9		12/20/2017		10,000		(139	)
46846,SWAP, USD 1 / (USD 0), :912828TJ9		12/20/2017		5,000		59
47105,SWAP, USD 1 / (USD 0), :912810QV3		12/20/2017		25,000		532
47122,SWAP, USD 1 / (USD 0), :912828TJ9		12/20/2017		20,000		235
47184,SWAP, USD 1 / (USD 0), :912828TJ9		12/20/2017		5,000		(70	)
47284,SWAP, USD 1 / (USD 0), :912810QV3		12/20/2017		10,000		213
59021,SWAP, USD 1 / (USD 0), :912803DP5		12/20/2017		20,000		426
59022,SWAP, USD 1 / (USD 0), :912803DQ3		12/20/2017		25,000		440
49133,SWAP, USD 5 / (USD 0), :912803DJ9		12/20/2017		10,000		1,568
49374,SWAP, USD 1 / (USD 0), :912803DJ9		12/20/2017		10,000		203
49893,SWAP, USD 1 / (USD 0), :12622DAC8		12/20/2017		10,000		146
50058,SWAP, USD 1 / (USD 0), :36248EAB1		12/20/2017		10,000		170
50222,SWAP, USD 1 / (USD 0), :36248EAB1		12/20/2017		10,000		224
60080,SWAP, USD 1 / (USD 0), :912828TY6		6/20/2018		30,000		593
60228,SWAP, USD 1 / (USD 0), :912828TY6		6/20/2018		5,000		80
63831,SWAP, USD 5 / (USD 0), :912810RA8		9/20/2020		10,000		2,058
66719,SWAP, USD 1 / (USD 0), :912810RB6		9/20/2020		20,000		(27	)
63950,SWAP, USD 1 / (USD 0), :912810RB6		9/20/2020		15,000		(15	)
63952,SWAP, USD 1 / (USD 0), :912810RB6		9/20/2023		20,000		(252	)
64594,SWAP, USD 1 / (USD 0), :912810RA8		9/20/2020		25,000		64

53

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

At December 31, 2013 and 2012, the fair value of all derivative contracts, aggregated at a counterparty level, with a positive fair value amounted to $26,507 and $43,857, respectively.

At December 31, 2013 and 2012, the fair value of all derivative contracts, aggregated at a counterparty level, with a negative fair value amounted to $47,684 and $11,206, respectively.

At December 31, 2013 and 2012, the Company’s outstanding financial instruments with on and off-balance sheet risks, shown in notional amounts, are summarized as follows:

	Notional Amount
	2013		2012
Interest rate and currency swaps:
Receive fixed—pay fixed	$	546,179	$	102,379
Swaps:
Receive fixed—pay floating		541,616		1,111,262
Receive fixed—pay fixed		39,994		—
Receive floating—pay fixed		141,000		—
Receive floating—pay floating		35,784		—

Open futures contracts at December 31, 2013 and 2012 were as follows:

Long/ Short	Number of Contracts		Contract Type	Opening Fair Value		Year-End Fair Value
December 31, 2013
Long		7	HANG SENG IDX FUT Jan14	$	8,144	$	8,166
Long		21	S&P 500 FUTURE Mar14		9,254		9,665
Short		320	S&P 500 FUTURE Mar14		141,730		147,288
Long		50	DJ EURO STOXX 50 Mar14		1,450		1,554
Short		31	S&P 500 E-MINI FUTURE Mar14		2,759		2,853
Short		85	FTSE 100 IDX FUT Mar14		5,314		5,692
Short		190	NASDAQ 100 E-MINI Mar14		13,186		13,618
Short		30	NIKKEI 225 (OSE) Mar14		488,477		488,700

54

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

Long/ Short	Number of Contracts			Contract Type	Opening Fair Value			Year-End Fair Value
December 31, 2012
Long		3		HANG SENG IDX FUT Jan13	$	437		$	438
Short		(659	)	S&P 500 FUTURE Mar13		(233,040	)		(233,961	)
Long		25		DJ EURO STOXX 50 Mar13		865			864
Short		(9	)	S&P 500 E-MINI FUTURE Mar13		(633	)		(639	)
Short		(350	)	FTSE 100 IDX FUT Mar13		(33,455	)		(33,482	)
Short		(540	)	NASDAQ 100 E-MINI Mar13		(28,786	)		(28,676	)
Short		(50	)	NIKKEI 225 (OSE) Mar13		(5,563	)		(6,035	)

For the years ended December 31, 2013, 2012 and 2011, the Company recorded unrealized gains (losses) of $(31,835), $34,383 and $121,858, respectively, for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. This has been recorded directly to unassigned surplus as an unrealized gain. The Company did not recognize any unrealized gains or losses during 2013, 2012 or 2011 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

The following tables show the pledged or restricted assets as of December 31, 2013 and 2012, respectively:

	Gross Restricted Current Year
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
a. Subject to contractual obligation for which liability is not shown	$	—	$	—	$	—	$	—	$	—
b. Collateral held under security lending agreements		430,771		—		18,918		—		449,689
c. Subject to repurchase agreements		—		—		—		—		—
d. Subject to reverse repurchase agreements		—		—		—		—		—
e. Subject to dollar repurchase agreements		20,491		—		—		—		20,491
f.  Subject to dollar reverse repurchase agreements		—		—		—		—		—
g. Placed under option contracts		—		—		—		—		—
h. Letter stock or securities restricted as to sale		—		—		—		—		—
i.  On deposit with state(s)		3,276		—		—		—		3,276
j.  On deposit with other regulatory bodies		—		—		—		—		—
k. Pledged as collateral not captured in other categories		36,135		—		—		—		36,135
l.  Other restricted assets		—		—		—		—		—
m.Total Restricted Assets	$	490,673	$	—	$	18,918	$	—	$	509,591

55

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	Gross Restricted							Percentage
Restricted Asset Category	Total From Prior Year		Increase/ (Decrease)			Total Current Year Admitted Restricted		Gross Restricted to Total Assets			Admitted Restricted to Total Admitted Assets
a. Subject to contractual obligation for which liability is not shown	$	—	$	—		$	—		0.00	%		0.00	%
b. Collateral held under security lending agreements		277,433		172,257			449,690		1.53			1.53
c. Subject to repurchase agreements		—		—			—		0.00			0.00
d. Subject to reverse repurchase agreements		—		—			—		0.00			0.00
e. Subject to dollar repurchase agreements		63,547		(43,057	)		20,491		0.07			0.07
f.  Subject to dollar reverse repurchase agreements		—		—			—		0.00			0.00
g. Placed under option contracts		—		—			—		0.00			0.00
h. Letter stock or securities restricted as to sale		—		—			—		0.00			0.00
i.  On deposit with state(s)		3,292		(15	)		3,276		0.01			0.01
j.  On deposit with other regulatory bodies		—		—			—		0.00			0.00
k. Pledged as collateral not captured in other categories		19,516		16,618			36,135		0.12			0.12
l.  Other restricted assets		—		—			—		0.00			0.00
m.Total Restricted Assets	$	363,788	$	145,803		$	509,592		1.73	%		1.73	%

Assets pledged as collateral not captured in other categories includes invested assets with a carrying value of $36,135 and $19,516, respectively, in conjunction with derivative transactions as of December 31, 2013 and 2012, respectively.

6. Reinsurance

Certain premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The Company reinsures portions of the risk on certain insurance policies which exceed its established limits, thereby providing a greater diversification of risk and minimizing exposure on larger risks. The Company remains contingently liable with respect to any insurance ceded, and this would become an actual liability in the event that the assuming insurance company became unable to meet its obligation under the reinsurance treaty.

56

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

Premiums earned reflect the following reinsurance amounts:

	Year Ended December 31
	2013			2012			2011
Direct premiums	$	5,269,131		$	4,960,351		$	4,950,537
Reinsurance assumed—affiliates		82			81			104
Reinsurance assumed—non affiliates		531,881			633,476			621,553
Reinsurance ceded—affiliates		(203,917	)		(278,372	)		(359,404	)
Reinsurance ceded—non affiliates		(350,507	)		(375,188	)		(786,320	)
Net premiums earned	$	5,246,670		$	4,940,348		$	4,426,470

Aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded to affiliates at December 31, 2013 and 2012 of $1,521,643 and $1,718,959, respectively.

The Company received reinsurance recoveries in the amounts of $470,789, $492,249 and $325,524 during 2013, 2012 and 2011, respectively. At December 31, 2013 and 2012, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $145,050 and $159,544, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2013 and 2012 of $2,010,935 and $2,201,388, respectively.

The Company would experience no reduction in surplus at December 31, 2013 or 2012 if all reinsurance agreements were cancelled.

The Company did not enter into any new reinsurance agreements in which a reserve credit was taken during the years ended December 31, 2013 or 2012.

During 2013, the Company recaptured certain treaties associated with the divestiture of the Transamerica Reinsurance operations that were previously ceded to an affiliate, for which net consideration received was $122,047, life and claim reserves recaptured were $281,190 and other assets recaptured were $9,615, resulting in a pre-tax loss of $149,528 which was included in the statement of operations.

During 2013, the Company also recaptured certain treaties associated with the divestiture of the Transamerica Reinsurance operations that were previously ceded to a non-affiliate, for which net consideration paid was $5,456, life and claim reserves recaptured were $31,857, other assets recaptured were $6,677 and the unamortized gain related to these blocks was released into income from surplus of $2,244 ($1,458 after tax), resulting in a pre-tax loss of $28,392, which was included in the statement of operations.

57

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

Subsequent to certain 2013 recaptures, the Company novated certain treaties to a non-affiliate, in which consideration paid was $116,591, life and claim reserves released were $313,047 and other assets were transferred associated with the business of $16,292, resulting in a pre-tax gain of $180,164, which was included in the statement of operations.

The Company novated third party assumed retrocession agreements during 2013 that were previously retroceded to a non-affiliate in which no net consideration was exchanged. Life and claim reserves were exchanged in the amount of $2,044, other assets were exchanged in the amount of $103 and other liabilities were exchanged in the amount of $256. As a result, there was no net financial impact from these transactions on a pre-tax basis, as assumed and ceded reserves along with other assets and other liabilities exchanged were impacted by equivalent amounts.

During 2013, the Company recaptured certain treaties from a non-affiliate, for which net consideration received was $770, life and claim reserves recaptured were $1,215, and premiums recaptured were $255, resulting in a pre-tax loss of $190, which was included in the statement of operations.

Amortization of previously deferred gains associated with the divestiture of the Transamerica Reinsurance operations was released into income in the amount of $20,316 ($13,206 after tax) during 2013.

During 2012, the Company recaptured certain treaties associated with the divestiture of the Transamerica Reinsurance operations that were previously ceded to an affiliate, for which net consideration paid was $9,487, life and claim reserves recaptured were $12,438 and other assets recaptured were $391, resulting in a pre-tax loss of $21,534 which was included in the statement of operations.

During 2012, the Company recaptured certain treaties associated with the divestiture of the Transamerica Reinsurance operations that were previously ceded to a non-affiliate, for which net consideration paid was $27,425, life and claim reserves recaptured were $97,403, other assets recaptured were $7,410 and the unamortized gain related to these blocks was released into income from surplus of $9,990, ($6,556 after tax), resulting in a pre-tax loss of $107,428, which was included in the statement of operations.

Subsequent to the recaptures that took place during 2012, the Company reinsured to a non-affiliate certain treaties associated with the business that was previously ceded to an affiliate, for which a reinsurance premium and ceding commission were received in the amount of $843 and $6,904, respectively, and life and claim reserves transferred were $7,971, resulting in a pre-tax gain of $15,718 ($10,217 net of tax), which was credited directly to unassigned surplus on a net of tax basis.

58

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

Subsequent to the recaptures that took place during 2012, the Company reinsured to an affiliate certain treaties associated with the business that was previously ceded to a non-affiliate, for which a reinsurance premium was paid in the amount of $13,711, ceding commission was received in the amount of $18,696, life and claim reserves transferred were $78,778 and other assets were transferred in the amount of $3,549, resulting in a pre-tax gain of $80,214 ($52,139 net of tax), which was credited directly to unassigned surplus on a net of tax basis.

Also subsequent to certain 2012 recaptures, the Company novated certain treaties to a non-affiliate, in which consideration received was $24,179, life and claim reserves released were $23,092 and other assets were transferred associated with the business of $4,251, resulting in a pre-tax gain of $43,020, which was included in the statement of operations.

On April 26, 2011, Aegon N.V. announced the divestiture of its life reinsurance operations, Transamerica Reinsurance, to SCOR, which was effective August 9, 2011. The life reinsurance business conducted by Transamerica Reinsurance was written through several of Aegon N.V.’s U.S. and international affiliates, all of which remain Aegon N.V. affiliates following the closing, except for Transamerica International Reinsurance Ireland, Limited (TIRI), an Irish reinsurance company. As a result of this transaction, the Company entered into a series of recapture and reinsurance agreements during the third and fourth quarters of 2011 which directly resulted in a pre-tax loss of $474,720 which was included in the statement of operations, and a net of tax gain of $400,760 which has been credited directly to unassigned surplus. These amounts include current year amortization of previously deferred gains, as well as releases of previously deferred gains from unassigned surplus into earnings related to these transactions. Additional information surrounding these transactions is outlined below.

Effective August 9, 2011, the Company recaptured business that was associated with the divestiture of the Transamerica Reinsurance operations which was previously retroceded on a coinsurance basis to an affiliate. The Company received recapture consideration of $55,356, recaptured reserves of $293,975, recaptured other assets of $8,586 and released into income a previously deferred unamortized gain resulting from the original transaction in the amount of $2,297, resulting in a pre-tax loss of $227,736 which has been included in the statement of operations. Prior to this transaction, the Company amortized $498, net of tax, of the deferred gain related to the initial transaction into earnings with a corresponding charge directly to unassigned surplus in 2011.

Subsequently, effective August 9, 2011, the Company ceded business that was associated with the divestiture of the Transamerica Reinsurance operations on a coinsurance basis to a non-affiliate. The Company paid a net reinsurance premium of $549,682, received an initial ceding commission of $219,000, transferred other assets in the amount of $12,548

59

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

and released net reserves of $790,263. The Company paid an experience refund in the amount of $84,770 to an affiliate and released IMR associated with certain business in the amount of $13,086. These transactions resulted in a net of tax gain of $248,557, which has been credited directly to unassigned surplus. During 2011, the Company amortized $7,712, net of tax, of the deferred gain into earnings with a corresponding charge directly to unassigned surplus.

Effective October 1, 2011, the Company recaptured business that was associated with the divestiture of the Transamerica Reinsurance operations which was previously retroceded on a coinsurance basis to a non-affiliate. The Company paid recapture consideration of $9,840, recaptured reserves of $402,503, recaptured other net assets of $10,226 and released into income a previously deferred unamortized gain resulting from the original transaction in the amount of $230,033, resulting in a pre-tax loss of $172,084, which has been included in the statement of operations. Subsequently, effective October 1, 2011, the Company ceded this business on a coinsurance basis to an affiliate and as a result received cash, transferred other net assets and released reserves consistent with the amounts recaptured, resulting in a net of tax gain of $262,245, which has been credited directly to unassigned surplus.

Effective October 1, 2011, the Company recaptured business that was associated with the divestiture of the Transamerica Reinsurance operations which was previously retroceded on a coinsurance basis to an affiliate. The Company received recapture consideration of $30,305, recaptured reserves of $123,935 and recaptured other assets of $17,964, resulting in a pre-tax loss of $75,666, which has been included in the statement of operations. Subsequently, effective October 1, 2011, the Company ceded this business on a coinsurance basis to a non-affiliate and as a result paid cash, transferred other assets and released reserves consistent with the amounts recaptured, resulting in a net of tax gain of $49,183, which has been credited directly to unassigned surplus.

During the last half of 2011, the Company recaptured the business that was associated with the divestiture of the Transamerica Reinsurance operations from several Aegon N.V. affiliates. This business was subsequently ceded to SCOR entities and in addition, retrocession reinsurance treaties were executed. The Company assigned certain third party retrocession agreements to SCOR entities as a component of the divestiture of the Transamerica Reinsurance operations and the associated Master Retrocession Agreement. As a result, the unaffiliated retrocession reinsurance treaties were assigned from the Company to a SCOR entity, resulting in this risk being ceded to SCOR and subsequently to the unaffiliated third parties. The reserves and assets associated with these assignments were $87,665, where the counterparty’s net reserves ceded exchanged counterparties with no consideration exchanged, resulting in no net income or surplus impact to the Company.

60

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

During 2011, the Company amortized deferred gains from reinsurance transactions occurring prior to 2010 of $1,991, respectively, into earnings on a net of tax basis with a corresponding charge to unassigned surplus. The Company did not amortize any deferred gains from reinsurance transactions occurring prior to 2011 into earnings during 2013 or 2012.

7. Income Taxes

The net deferred income tax asset at December 31, 2013 and 2012 and the change from the prior year are comprised of the following components:

	December 31, 2013
	Ordinary		Capital		Total
Gross Deferred Tax Assets	$	86,427	$	16,998	$	103,425
Statutory Valuation Allowance Adjustment		—		—		—
Adjusted Gross Deferred Tax Assets		86,427		16,998		103,425
Deferred Tax Assets Nonadmitted		22,381		—		22,381
Subtotal (Net Deferred Tax Assets)		64,046		16,998		81,044
Deferred Tax Liabilities		32,805		6,641		39,446
Net Admitted Deferred Tax Assets	$	31,241	$	10,357	$	41,598

	December 31, 2012
	Ordinary		Capital		Total
Gross Deferred Tax Assets	$	113,219	$	22,618	$	135,837
Statutory Valuation Allowance Adjustment		—		—		—
Adjusted Gross Deferred Tax Assets		113,219		22,618		135,837
Deferred Tax Assets Nonadmitted		11,932		—		11,932
Subtotal (Net Deferred Tax Assets)		101,287		22,618		123,905
Deferred Tax Liabilities		45,060		9,824		54,884
Net Admitted Deferred Tax Assets	$	56,227	$	12,794	$	69,021

	Change
	Ordinary			Capital			Total
Gross Deferred Tax Assets	$	(26,792	)	$	(5,620	)	$	(32,412	)
Statutory Valuation Allowance Adjustment		—			—			—
Adjusted Gross Deferred Tax Assets		(26,792	)		(5,620	)		(32,412	)
Deferred Tax Assets Nonadmitted		10,449			—			10,449
Subtotal (Net Deferred Tax Assets)		(37,241	)		(5,620	)		(42,861	)
Deferred Tax Liabilities		(12,255	)		(3,183	)		(15,438	)
Net Admitted Deferred Tax Assets	$	(24,986	)	$	(2,437	)	$	(27,423	)

61

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

The main components of deferred income tax amounts are as follows:

	Year Ended December 31
	2013		2012		Change
Deferred Tax Assets:
Ordinary
Discounting of unpaid losses	$	125	$	239	$	(114	)
Policyholder reserves		56,040		79,398		(23,358	)
Deferred acquisition costs		21,222		18,294		2,928
Receivables—nonadmitted		1,805		2,430		(625	)
Section 197 Intangible Amortization		90		119		(29	)
Guaranty fund accrual		1,400		6,189		(4,789	)
Reinsurance to unauthroized companies		171		181		(10	)
Assumption Reinsurance		5,355		6,176		(821	)
Other (including items <5% of ordinary tax assets)		219		193		26
Subtotal		86,427		113,219		(26,792	)
Statutory valuation allowance adjustment		—		—		—
Nonadmitted		22,381		11,932		10,449
Admitted ordinary deferred tax assets		64,046		101,287		(37,241	)
Capital:
Investments		16,998		22,618		(5,620	)
Subtotal		16,998		22,618		(5,620	)
Statutory valuation allowance adjustment		—		—		—
Nonadmitted		—		—		—
Admitted capital deferred tax assets		16,998		22,618		(5,620	)
Admitted deferred tax assets	$	81,044	$	123,905	$	(42,861	)

62

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	Year Ended December 31
	2013		2012		Change
Deferred Tax Liabilities:
Ordinary
Investments	$	13,855	$	10,496	$	3,359
§807(f) adjustment		5,893		7,302		(1,409	)
Reinsurance ceded		13,055		14,225		(1,170	)
Other (including items <5% of total ordinary tax liabilities)		2		18		(16	)
Subtotal		32,805		32,041		764
Capital
Investments		6,641		22,843		(16,202	)
Subtotal		6,641		22,843		(16,202	)
Deferred tax liabilities		39,446		54,884		(15,438	)
Net deferred tax assets/liabilities	$	41,598	$	69,021	$	(27,423	)

The Company did not report a valuation allowance for deferred income tax assets as of December 31, 2013 or 2012.

As discussed in Note 1, for the years ended December 31, 2013 and 2012 the Company admits deferred income tax assets pursuant to SSAP No. 101. The amount of admitted adjusted gross deferred income tax assets under each component of SSAP No. 101 is as follows:

	December 31, 2013
	Ordinary		Capital		Total
Admission Calculation Components SSAP No. 101
2(a)  Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	31,241	$	10,357	$	41,598
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)		—		—		—
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		—		—		—
2.      Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		133,947
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		32,805		6,641		39,446
2(d)  Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	64,046	$	16,998	$	81,044

63

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	December 31, 2012
	Ordinary		Capital		Total
Admission Calculation Components SSAP No. 101
2(a)  Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	56,227	$	12,794	$	69,021
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)		—		—		—
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		—		—		—
2.      Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		116,020
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		45,060		9,824		54,884
2(d)  Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	101,287	$	22,618	$	123,905

	Change
	Ordinary		Capital		Total
Admission Calculation Components SSAP No. 101
2(a)  Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks	$	(24,986)	$	(2,437)	$	(27,423)
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)		—		—		—
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date		—		—		—
2.      Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold		XXX		XXX		17,927
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		(12,255)		(3,183)		(15,438)
2(d)  Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))	$	(37,241)	$	(5,620)	$	(42,861)

64

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	December 31
	2013			2012			Change
Ratio Percentage Used To Determine Recovery Period and Threshold Limitation Amount		998	%		809	%		189	%
Amount of Adjusted Capital and Surplus Used To Determine Recovery Period and Threshold Limitation in 2(b)2 above	$	892,721		$	766,655		$	126,066

The impact of tax planning strategies at December 31, 2013 and 2012 was as follows:

	December 31, 2013
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs	$	86,427		$	16,998		$	103,425
(% of Total Adjusted Gross DTAs)		0	%		39	%		6	%
Net Admitted Adjusted Gross DTAs	$	64,046		$	16,998		$	81,044
(% of Total Net Admitted Adjusted Gross DTAs)		0	%		0	%		0	%
	December 31, 2012
	Ordinary Percent			Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs	$	113,219		$	22,618		$	135,837
(% of Total Adjusted Gross DTAs)		0	%		0	%		0	%
Net Admitted Adjusted Gross DTAs	$	101,287		$	22,618		$	123,905
(% of Total Net Admitted Adjusted Gross DTAs)		0	%		0	%		0	%
	Ordinary Percent			Change Capital Percent			Total Percent
Impact of Tax Planning Strategies:
Adjusted Gross DTAs	$	(26,792	)	$	(5,620	)	$	(32,412	)
(% of Total Adjusted Gross DTAs)		0	%		39	%		6	%
Net Admitted Adjusted Gross DTAs	$	(37,241	)	$	(5,620	)	$	(42,861	)
(% of Total Net Admitted Adjusted Gross DTAs)		0	%		0	%		0	%

65

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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
	2013		2012		Change
Current Income Tax
Federal	$	14,157	$	110,930	$	(96,773	)
Foreign		—		—		—
Subtotal		14,157		110,930		(96,773	)
Federal income tax on net capital gains		4,221		17,772		(13,551	)
Federal and foreign income taxes incurred	$	18,378	$	128,702	$	(110,324	)

	Year Ended December 31
	2012		2011		Change
Federal	$	110,930	$	44,789	$	66,141
Foreign		—		—		—
Subtotal		110,930		44,789		66,141
Federal income tax on net capital gains		17,772		15,802		1,970
Utilization of capital loss carry-forwards		—		—		—
Other		—		—		—
Federal and foreign income taxes incurred	$	128,702	$	60,591	$	68,111

66

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate of 35% to income before tax as follows:

	Year Ended December 31
	2013			2012			2011
Current income taxes incurred	$	18,378		$	128,702		$	60,591
Change in deferred income taxes		40,501			12,128			7,754
(without tax on unrealized gains and losses)
Total income tax reported	$	58,879		$	140,830		$	68,345
Income before taxes	$	251,898		$	365,242		$	(182,234	)
		35.00	%		35.00	%		35.00	%
Expected income tax expense (benefit) at 35% statutory rate	$	88,164		$	127,835		$	(63,782	)
Increase (decrease) in actual tax reported resulting from:
Dividends received deduction		(4,591	)		(4,308	)		(3,958	)
Tax credits		(2,911	)		(3,148	)		(2,217	)
Tax adjustment for IMR		(16,134	)		6,726			(10,326	)
Surplus adjustment for in-force ceded		(5,132	)		12,782			140,266
Nondeductible expenses		15			15			2,882
Deferred tax benefit on other items in surplus		(371	)		(7,149	)		(1,343	)
Provision to return		(336	)		(1,968	)		(454	)
Life-owned life insurance		—			—			(281	)
Dividends from certain foreign corporations		74			39			30
Prior period adjustment		—			10,356			4,791
Other		101			(350	)		2,737
Total income tax reported	$	58,879		$	140,830		$	68,345

For federal income tax purposes, the Company joins in a consolidated income tax return filing with its indirect parent company, Transamerica Corporation, and other affiliated companies. The method of allocation between the companies is subject to a written tax allocation agreement. Under the terms of the tax allocation agreement, allocations are based on separate income tax return calculations. The Company is entitled to recoup federal income taxes paid in the event the future losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in the year generated. The Company is also entitled to recoup federal income taxes paid in the event the losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in any carryback or carryforward year when so applied. Intercompany income tax balances are settled within thirty days of payment to or filing with the Internal Revenue Service. A tax return has not yet been filed for 2013.

67

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

As of December 31, 2013 and 2012, the Company had no operating loss, capital loss or tax credit carryforwards available for tax purposes.

The Company incurred income taxes during 2013, 2012 and 2011 of $14,455, $93,620 and $113,223, respectively, which will be available for recoupment in the event of future net losses.

The amount of tax contingencies calculated for the Company as of December 31, 2013 and 2012 is $17 and $32, respectively. The total amount of tax contingencies that, if recognized, would affect the effective income tax rate is $17. The Company classifies interest and penalties related to income taxes as interest expense and penalty expense, respectively. The Company’s interest (benefit) expense related to income taxes for the years ending December 31, 2013, 2012 and 2011 is $25, $(203) and $(25), respectively. The total interest payable balance as of December 31, 2013 and 2012 is $1 and $2, respectively. The Company recorded no liability for penalties. It is not anticipated that the total amounts of unrecognized tax benefits will significantly increase within twelve months of the reporting date.

The Company’s federal income tax returns have been examined by the Internal Revenue Service and closing agreements have been executed through 2004. The examination for the years 2005 through 2006 have been completed and resulted in tax return adjustments that are currently undergoing final calculation at appeal. The examination for the years 2007 through 2008 has been completed and resulted in tax return adjustments that are currently being appealed. An examination is already in progress for the years 2009 and 2010. The Company believes that there are adequate defenses against or sufficient provisions established related to any open or contested tax positions.

8. Policy and Contract Attributes

Participating life insurance policies were issued by the Company which entitle policyholders to a share in the earnings of the participating policies, provided that a dividend distribution, which is determined annually based on mortality and persistency experience of the participating policies, is authorized by the Company.

For the years ended December 31, 2013 and 2012, there were no premiums for participating life insurance policies. For the year ended 2011, premiums for participating life insurance policies were $111. The Company accounts for its policyholder dividends based on dividend scales and experience of the policies. The Company did not pay any dividends to policyholders during 2013, 2012 or 2011.

68

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

A portion of the Company’s policy reserves and other policyholders’ funds (including separate account liabilities) relates to liabilities established on a variety of the Company’s annuity and deposit fund products. There may be certain restrictions placed upon the amount of funds that can be withdrawn without penalty. The amount of reserves on these products, by withdrawal characteristics, is summarized as follows:

	December 31 2013
	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal
With fair value adjustment	$	794,222	$	96,875	$	—	$	891,097		3	%
At book value less surrender charge of 5% or more		907,482		44,403		—		951,885		4
At fair value		9,335		495,948		10,969,025		11,474,308		44
Total with adjustment or at fair value		1,711,039		637,226		10,969,025		13,317,290		51
At book value without adjustment     (minimal or no charge or adjustment)		3,705,571		61,651		—		3,767,222		14
Not subject to discretionary withdrawal provision		920,466		6,567,686		1,679,657		9,167,809		35
Total annuity reserves and deposit liabilities		6,337,076		7,266,563		12,648,682		26,252,321		100	%
Less reinsurance ceded		1,308		—		—		1,308
Net annuity reserves and deposit liabilities	$	6,335,768	$	7,266,563	$	12,648,682	$	26,251,013

	December 31 2012
	General Account		Separate Account with Guarantees		Separate Account Non- Guaranteed		Total		Percent
Subject to discretionary withdrawal
With fair value adjustment	$	863,230	$	100,861	$	—	$	964,091		4	%
At book value less surrender charge of 5% or more		963,783		47,733		—		1,011,516		4
At fair value		6,586		485,825		7,974,208		8,466,619		35
Total with adjustment or at fair value		1,833,599		634,419		7,974,208		10,442,226		43
At book value without adjustment     (minimal or no charge or adjustment)		3,963,343		66,275		—		4,029,618		17
Not subject to discretionary withdrawal provision		964,662		6,566,022		1,965,950		9,496,634		40
Total annuity reserves and deposit liabilities		6,761,604		7,266,716		9,940,158		23,968,478		100	%
Less reinsurance ceded		1,978		—		—		1,978
Net annuity reserves and deposit liabilities	$	6,759,626	$	7,266,716	$	9,940,158	$	23,966,500

69

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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, 2013, 2012 and 2011 is as follows:

	Nonindexed
	Guarantee		Nonguaranteed
	Less Than		Separate
	or Equal to 4%		Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2013	$	1,806,215	$	2,675,714	$	4,481,929
Reserves for separate accounts as of December 31, 2013 with assets at:
Fair value	$	—	$	12,736,654	$	12,736,654
Amortized cost		7,266,563		—		7,266,563
Total as of December 31, 2013	$	7,266,563	$	12,736,654	$	20,003,217
Reserves for separate accounts by withdrawal characteristics as of December 31, 2013:
Subject to discretionary withdrawal:
With fair value adjustment	$	96,875	$	—	$	96,875
At book value without fair value adjustment and with current surrender charge of 5% or more		44,403		—		44,403
At fair value		495,948		11,056,997		11,552,945
At book value without fair value adjustment and with current surrender charge of less than 5%		61,651		—		61,651
Subtotal		698,877		11,056,997		11,755,874
Not subject to discretionary withdrawal		6,567,686		1,679,657		8,247,343
Total separate account reserves at December 31, 2013	$	7,266,563	$	12,736,654	$	20,003,217

70

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	Nonindexed
	Guarantee		Nonguaranteed
	Less Than		Separate
	or Equal to 4%		Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2012	$	1,805,525	$	2,357,927	$	4,163,452
Reserves for separate accounts as of December 31, 2012 with assets at:
Fair value	$	—	$	10,008,134	$	10,008,134
Amortized cost		7,266,715		—		7,266,715
Total as of December 31, 2012	$	7,266,715	$	10,008,134	$	17,274,849
Reserves for separate accounts by withdrawal characteristics as of December 31, 2012:
Subject to discretionary withdrawal:
With fair value adjustment	$	100,860	$	—	$	100,860
At book value without fair value adjustment and with current surrender charge of 5% or more		47,733		—		47,733
At fair value		485,825		8,042,184		8,528,009
At book value without fair value adjustment and with current surrender charge of less than 5%		66,275		—		66,275
Subtotal		700,693		8,042,184		8,742,877
Not subject to discretionary withdrawal		6,566,022		1,965,950		8,531,972
Total separate account reserves at December 31, 2012	$	7,266,715	$	10,008,134	$	17,274,849

	Nonindexed
	Guarantee		Nonguaranteed
	Less Than		Separate
	or Equal to 4%		Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2011	$	2,184,262	$	2,035,362	$	4,219,624
Reserves for separate accounts as of December 31, 2011 with assets at:
Fair value	$	—	$	8,294,680	$	8,294,680
Amortized cost		7,036,920		—		7,036,920
Total as of December 31, 2011	$	7,036,920	$	8,294,680	$	15,331,600
Reserves for separate accounts by withdrawal characteristics as of December 31, 2011:
Subject to discretionary withdrawal:
With fair value adjustment	$	132,777	$	—	$	132,777
At book value without fair value adjustment and with current surrender charge of 5% or more		50,323		—		50,323
At fair value		444,165		6,301,437		6,745,602
At book value without fair value adjustment and with current surrender charge of less than 5%		69,871		—		69,871
Subtotal		697,136		6,301,437		6,998,573
Not subject to discretionary withdrawal		6,339,784		1,993,243		8,333,027
Total separate account reserves at December 31, 2011	$	7,036,920	$	8,294,680	$	15,331,600

71

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

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

	Year Ended December 31
	2013			2012			2011
Transfer as reported in the summary of operations of the separate accounts statement:
Transfers to separate accounts	$	4,481,983		$	4,163,485		$	4,219,645
Transfers from separate accounts		(3,287,943	)		(3,220,563	)		(3,075,684	)
Net transfers to separate accounts		1,194,040			942,922			1,143,961
Miscellaneous reconciling adjustments		(9	)		8			(63	)
Net transfers as reported in the statements of operations of the life, accident and health annual statement	$	1,194,031		$	942,930		$	1,143,898

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, 2013 and 2012, the Company’s separate account statement included legally insulated assets of $20,293,235 and $17,590,145, respectively. The assets legally insulated from general account claims at December 31, 2013 and 2012 are attributed to the following products:

	2013		2012
Variable life	$	98,422	$	80,147
Variable annuities		9,040,471		6,288,266
Market value separate accounts		1,759,358		1,550,300
Par annuities		1,958,911		2,220,569
Book value separate accounts		7,436,073		7,450,863
Total separate account assets	$	20,293,235	$	17,590,145

Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. As of December 31, 2013 and 2012, the general account of the Company had a maximum guarantee for separate account liabilities of $32,328 and $47,317, respectively. To compensate the general account for the risk taken, the separate account paid risk charges of $32,926, $31,916 and $27,094 to the general account in 2013, 2012 and 2011, respectively. During the years ended December 31, 2013, 2012 and 2011, the general account of the Company had paid $680, $619 and $1,542, respectively, toward separate account guarantees.

72

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

At December 31, 2013 and 2012, the Company reported guaranteed separate account assets at amortized cost in the amount of $7,436,073 and $7,450,863, 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 $7,414,425 and $7,618,858 at December 31, 2013 and 2012, respectively, which would have resulted in an unrealized (loss) gain of $(21,648) and $167,995, respectively, had these assets been reported at fair value.

The Company participates in securities lending within the separate account. The Company follows the same policies and procedures as the general account for such transactions conducted from the separate account. See Note 10 for a discussion of securities lending policies and procedures. As of December 31, 2013 and 2012, securities with a book value of $18,918 and $21,171, respectively, were on loan under securities lending agreements, which represents less than one percent of total separate account assets. The Company does not obtain approval or otherwise provide notification to contract holders regarding securities lending transactions that occur with separate account assets. However, the Company requires that borrowers pledge collateral worth 102% of the value of the loaned securities. As of December 31, 2013, the Company held collateral from securities lending transactions in the form of cash and on open terms in the amount of $19,307. This cash collateral is reinvested in a registered money market fund and is not available for general corporate purposes.

For variable annuities with guaranteed living benefits and variable annuities with minimum guaranteed death benefits the Company complies with Actuarial Guideline XLIII (AG 43), which replaces Actuarial Guidelines 34 and 39. AG 43 specifies statutory reserve requirements for variable annuity contracts with benefit guarantees (VACARVM) and without benefit guarantees and related products. The AG 43 reserve calculation includes variable annuity products issued after January 1, 1981. Examples of covered guaranteed benefits include guaranteed minimum accumulation benefits, return of premium death benefits, guaranteed minimum income benefits, guaranteed minimum withdrawal benefits and guaranteed payout annuity floors. The aggregate reserve for contracts falling within the scope of AG 43 is equal to the conditional tail expectation (CTE) Amount, but not less than the standard scenario amount (SSA).

To determine the CTE Amount, the Company used 1,000 of the pre-packaged scenarios developed by the American Academy of Actuaries (AAA) produced in October 2005 and prudent estimate assumptions based on Company experience. The SSA was determined using the assumptions and methodology prescribed in AG 43 for determining the SSA.

73

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

At December 31, 2013 and 2012, the Company had variable annuities with minimum guaranteed benefits as follows:

	Subjected				Reinsurance
	Account		Amount of		Reserve
Benefit and Type of Risk	Value		Reserve Held		Credit
December 31, 2013
Guaranteed Minimum Withdrawal Benefit	$	5,310,395	$	41,397	$	—
Guaranteed Minimum Death Benefit		1,600,493		2,659		1,308
December 31, 2012
Guaranteed Minimum Withdrawal Benefit	$	4,849,846	$	131,770	$	—
Guaranteed Minimum Death Benefit		1,373,096		7,639		1,978

Reserves on the Company’s traditional life insurance products are computed using mean reserving methodologies. These methodologies result in the establishment of assets for the amount of the net valuation premiums that are anticipated to be received between the policies’s paid-through date to the policy’s next anniversary date. At December 31, 2013 and 2012, the gross premium and loading amounts related to these assets (which are reported as premiums deferred and uncollected), are as follows:

	Gross			Loading		Net
December 31, 2013
Life and annuity:
Ordinary first-year business	$	208		$	188	$	20
Ordinary renewal business		138,879			1,259		137,620
Group life business		527			113		414
Credit life		252			—		252
Reinsurance ceded		(132,124	)		—		(132,124	)
Total life and annuity		7,742			1,560		6,182
Accident and health		4,284			—		4,284
	$	12,026		$	1,560	$	10,466

74

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

	Gross			Loading		Net
December 31, 2012
Life and annuity:
Ordinary first-year business	$	312		$	278	$	34
Ordinary renewal business		153,131			1,350		151,781
Group life business		664			127		537
Credit life		235			—		235
Reinsurance ceded		(146,264	)		—		(146,264	)
Total life and annuity		8,078			1,755		6,323
Accident and health		4,974			—		4,974
	$	13,052		$	1,755	$	11,297

The Company anticipates investment income as a factor in premium deficiency calculation, in accordance with SSAP No. 54, Individual and Group Accident and Health Contracts. As of December 31, 2013 and 2012, the Company had insurance in force aggregating $15,580,513 and $12,243,276, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the New York Department of Financial Services. The Company established policy reserves of $58,739 and $92,244 to cover these deficiencies as of December 31, 2013 and 2012, respectively.

9. Capital and Surplus

At December 31, 2013 and 2012, the Company had 44,175 shares of 6% non-voting, non-cumulative preferred stock issued and outstanding. Aegon owns 38,609 shares and TLIC owns 5,566 shares. Par value is $10 per share, and the liquidation value is $1,286.72 per share.

The preferred stock shareholders are entitled to receive non-cumulative dividends at the rate of 6% per year of an amount equal to the sum of (1) the par value plus (2) any additional paid-in capital for such preferred stock. Dividends are payable annually in December. The amount of dividends unpaid at December 31, 2013 was $430. The preferred shares have preference as to dividends and upon dissolution or liquidation of the Company.

The Company is subject to limitations, imposed by the State of New York, on the payment of dividends to its stockholders. Generally, dividends during any year may not be paid, without prior regulatory approval, in excess of the lesser of (1) 10 percent of the Company’s statutory surplus as of the preceding December 31, or (2) the Company’s statutory gain from operations before net realized capital gains on investments for the preceding year. Subject to the availability of unassigned surplus at the time of such a

75

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

dividend, the maximum payment which may be made in 2014, without prior approval of insurance regulatory authorities, is $93,458.

On December 21, 2011, the Company paid a preferred stock dividend and a common stock dividend of $3,410 and $296,590, respectively, to its parent companies, Aegon and TLIC. Of the common stock dividend amount, $76,057 was considered an ordinary dividend and $220,533 was considered an extraordinary dividend. Of the total $300,000 preferred and common stock dividends, Aegon received $262,200 and TLIC received $37,800. The Company did not pay any dividends during 2012 and 2013.

Life and health insurance companies are subject to certain RBC requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life and health insurance company is to be determined based on the various risk factors related to it. At December 31, 2013, the Company meets the minimum RBC requirements.

On May 2, 2008, the Company received $150,000 from Aegon in exchange for surplus notes. The Company received approval from the Superintendent of Insurance of the New York Department of Financial Services prior to the issuance of the surplus notes, as well as the December 31, 2013, 2012 and 2011 interest payments. These notes are due 20 years from the date of issuance at an interest rate of 6.25% and are subordinate and junior in the right of payment to all obligations and liabilities of the Company. In the event of liquidation of the Company, 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.

Additional information related to the outstanding surplus notes at December 31, 2013 and 2012 is as follows:

For Year	Balance		Interest Paid		Cumulative		Accrued
Ending	Outstanding		Current Year		Interest Paid		Interest
2013	$	150,000	$	9,375	$	53,125	$	—
2012		150,000		9,375		43,750		—

The Company held special surplus funds in the amount of $8,085 and $6,660, as of December 31, 2013 and 2012, respectively, for annuitant mortality fluctuations as required under New York Regulation 47, Separate Account and Separate Account Annuities.

76

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

10. Securities Lending

The Company participates in an agent-managed securities lending program. The Company receives collateral equal to 102% of the fair value of the loaned domestic securities as of the transaction date. If the fair value of the collateral is at any time less than 102% of the fair value of the loaned securities, the counterparty is mandated to deliver additional collateral, the fair value of which, together with the collateral already held in connection with the lending transaction, is at least equal to 102% of the fair value of the loaned 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, 2013 and 2012, respectively, securities in the amount of $416,442 and $238,014 were on loan under securities lending agreements. At December 31, 2013, 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 $430,659 and $257,972 at December 31, 2013 and 2012, respectively.

The contractual maturities of the securities lending collateral positions are as follows:

	Fair Value
Open	$	430,771
30 days or less		—
31 to 60 days		—
61 to 90 days		—
Greater than 90 days		—
Total		430,771
Securities received		—
Total collateral received	$	430,771

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.

77

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

The maturity dates of the reinvested securities lending collateral are as follows:

	Amortized Cost		Fair Value
Open	$	51,302	$	51,302
30 days or less		206,980		206,962
31 to 60 days		65,413		65,413
61 to 90 days		74,097		74,095
91 to 120 days		5,406		5,407
121 to 180 days		27,480		27,480
181 to 365 days		—		—
1 to 2 years		—		—
2-3 years		—		—
Greater than 3 years		—		—
Total		430,678		430,659
Securities received		—		—
Total collateral reinvested	$	430,678	$	430,659

For securities lending, the Company’s sources of cash that it uses to return the cash collateral is dependent upon the liquidity of the current market conditions. Under current conditions, the Company has securities with a par value of $430,668 (fair value of $430,659) that are currently tradable securities that could be sold and used to pay for the $430,771 in collateral calls that could come due under a worst-case scenario.

11. Retirement and Compensation Plans

The Company’s employees participate in a qualified defined benefit pension plan sponsored by Aegon. The Company has no legal obligation for the plan. The Company recognizes pension expense equal to its allocation from Aegon. The pension expense is allocated among the participating companies based on International Accounting Standards 19 (IAS 19), Accounting for Employee Benefits and based upon actuarial participant benefit calculations. The benefits are based on years of service and the employee’s eligible annual compensation. Pension expenses were $9, $9 and $8 for the years ended December 31, 2013, 2012 and 2011, respectively. The plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974.

The Company’s employees also participate in a defined contribution plan sponsored by Aegon which is qualified under Section 401(k) of the Internal Revenue Service Code. Employees of the Company who customarily work at least 1,000 hours during each calendar year and meet the other eligibility requirements are participants of the plan. Participants may elect to contribute up to twenty-five percent of their salary to the plan.

78

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

The Company will match an amount up to three percent of the participant’s salary. Participants may direct all of their contributions and plan balances to be invested in a variety of investment options. The plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974. The Company’s allocation of benefits expense for the years ended December 31, 2013, 2012 and 2011 was $6 for each year, respectively.

Aegon sponsors supplemental retirement plans to provide the Company’s senior management with benefits in excess of normal pension benefits. The plans are noncontributory, and benefits are based on years of service and the employee’s compensation level. The plans are unfunded and nonqualified under the Internal Revenue Service Code. In addition, Aegon has established incentive deferred compensation plans for certain key employees of the Company. The Company’s allocation of expense for these plans for each of the years ended December 31, 2013, 2012 and 2011 was insignificant. Aegon also sponsors an employee stock option plan/stock appreciation rights for employees of the Company and a stock purchase plan for its producers, with the participating affiliated companies establishing their own eligibility criteria, producer contribution limits and company matching formula. These plans have been accrued or funded as deemed appropriate by management of Aegon and the Company.

In addition to pension benefits, the Company participates in plans sponsored by Aegon that provide postretirement medical, dental and life insurance benefits to employees meeting certain eligibility requirements. Portions of the medical and dental plans are contributory. The postretirement plan expenses are charged to affiliates in accordance with an intercompany cost sharing arrangement. The Company’s allocation of postretirement expenses was negligible for the years ended December 31, 2013, 2012 and 2011.

12. Related Party Transactions

The Company shares certain officers, employees and general expenses with affiliated companies.

In accordance with an agreement between Aegon and the Company, Aegon 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 Aegon 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

79

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

Realty Advisors, Inc. (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. During 2013, 2012 and 2011, the Company paid $31,069, $24,579 and $23,065, respectively, for these services, which approximates cost.

The Company has an administration service agreement with Transamerica Asset Management, Inc. to provide administrative services to the Aegon/Transamerica Series Trust. The Company received $4,380, $2,699 and $1,688 for these services during 2013, 2012 and 2011, respectively.

Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $9,336, $5,633 and $4,411 for the years ended December 31, 2013, 2012 and 2011, respectively.

Payables to and receivables from affiliates and intercompany borrowings bear interest at the thirty-day commercial paper rate. During 2013, 2012 and 2011, the Company paid (received) net interest of $7, $(12) and $11, respectively, to (from) affiliates. At December 31, 2013 and 2012, the Company reported a net amount of $365 payable to and $87,032 due from affiliates, respectively. Terms of settlement require that these amounts are settled within 90 days.

At December 31, 2013 and 2012, the Company had short-term intercompany notes receivable of $50,000 and $54,700 as follows. The Company did not have any short-term intercompany notes receivable at December 31, 2011. In accordance with SSAP No. 25, Accounting for and Disclosures about Transactions with Affiliates and Other Related Parties, these notes are reported as short-term investments.

Receivable from	Amount		Due By		Interest Rate
December 31, 2013
AEGON	$	50,000		May 21, 2014		0.10	%
December 31, 2012
AEGON	$	54,700		April 25, 2013		0.12	%

80

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

13. Managing General Agents

The Company utilizes managing general agents and third-party administrators in its operations. Information regarding these entities is as follows:

							Total Direct
Name and Address of Managing				Types of	Types of		Premiums
General Agent or Third-Party			Exclusive	Business	Authority		Written/
Administrator	FEIN		Contract	Written	Granted		Produced By
The Vanguard Group, Inc. 100 Vanguard Blvd. Malvern, PA 19355		23-1945930	No	Deferred and Income Annuities		C,B,P,U	$	52,545

C- Claims Payment

B- Binding Authority

P- Premium Collection

U- Underwriting

For years ended December 31, 2013, 2012 and 2011, the Company had $52,545, $36,282 and $20,974, respectively, of direct premiums written by The Vanguard Group, Inc.

14. Commitments and Contingencies

The Company has contingent commitments of $21,212 and $14,317, at December 31, 2013 and 2012, respectively, to provide additional funding for joint ventures, partnerships and limited liability companies, which includes LIHTC commitments of $9,559 and $2,127 at December 31, 2013 and 2012, respectively.

Private placement commitments outstanding as of December 31, 2013 and 2012 were $32,000 and $11,715, respectively.

There were no securities acquired on a “to be announced” (TBA) basis at December 31, 2013 and 2012.

Cash collateral received from derivative counterparties as well as the obligation to return the collateral is recorded on the Company’s balance sheet. The amount of cash collateral posted to the Company as of December 31, 2013 and 2012, respectively, was $0 and $20,331. In addition, securities in the amount of $8,352 and $19,891 were also posted to the Company as of December 31, 2013 and 2012, respectively, which were not included in the financials of the Company. Noncash collateral is not to be recognized by the recipient unless that collateral is sold or repledged or the counterparty defaults.

81

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

The Company is a party to legal proceedings involving a variety of issues incidental to its business. Lawsuits may be brought in nearly any federal or state court in the United States or in an arbitral forum. In addition, there continues to be significant federal and state regulatory activity relating to financial services companies. The Company’s legal proceedings are subject to many variables, and given its complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and punitive damages, and injunctive relief, it is management’s opinion that damages arising from such demands will not be material to the Company’s financial position.

The Company is subject to insurance guaranty laws in the states in which it writes business. These laws provide for assessments against insurance companies for the benefit of policyholders and claimants in the event of insolvency of other insurance companies. Assessments are charged to operations when received by the Company except where right of offset against other taxes paid is allowed by law. Amounts available for future offsets are recorded as an asset on the Company’s balance sheet. The future obligation for known insolvencies has been accrued based on the most recent information available from the National Organization of Life and Health Insurance Guaranty Association. Potential future obligations for unknown insolvencies are not determinable by the Company and are not required to be accrued for financial reporting purposes. The Company has established a reserve of $8,680 and $34,002 at December 31, 2013 and 2012, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The Company had an offsetting premium tax benefit of $4,679 and $16,319 at December 31, 2013 and 2012, respectively. The guaranty fund expense was $3,437, $174 and $9,674 for the years ended December 31, 2013, 2012 and 2011, respectively.

15. Sales, Transfer and Servicing of Financial Assets and Extinguishments of Liabilities

The Company enters into dollar repurchase agreements in which securities are delivered to the counterparty once adequate collateral has been received. As of December 31, 2013 and 2012, the Company had dollar repurchase agreements outstanding in the amount of $20,491 and $63,548, respectively. The Company had an outstanding liability for borrowed money in the amount $20,029 and $67,407 at December 31, 2013 and 2012, respectively due to participation in dollar repurchase agreements which includes accrued interest.

82

Transamerica Financial Life Insurance Company

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Data)

The contractual maturities of the dollar repurchase agreement positions are as follows:

	Fair Value
Open	$	19,970
30 days or less		—
31 to 60 days		—
61 to 90 days		—
Greater than 90 days		—
Total		19,970
Securities received		—
Total collateral received	$	19,970

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. There were no securities of NAIC designation 3 or below sold during 2013 and reacquired within 30 days of the sale date.

16. Subsequent Event

The financial statements are adjusted to reflect events that occurred between the balance sheet date and the date when the financial statements are issued, provided they give evidence of conditions that existed at the balance sheet date (Type I). Events that are indicative of conditions that arose after the balance sheet date are disclosed, but do not result in an adjustment of the financial statements themselves (Type II). With the exception of the Affordable Care Act annual fee described below, the Company has not identified any Type I or Type II subsequent events for the year ended December 31, 2013 through the date the financial statements are issued.

On January 1, 2014, the Company will be subject to an annual fee under section 9010 of the Affordable Care Act (ACA). This annual fee will be allocated to individual health insurers based on the ratio of the amount of the entity’s net premiums written during the preceding calendar year to the amount of health insurance for any U.S. health risk that is written during the preceding calendar year. A health insurance entity’s portion of the annual fee becomes payable once the entity provides health insurance for any U.S. health risk for each calendar year beginning on or after January 1, 2014. As of December 31, 2013, the Company has written health insurance subject to the ACA assessment, expects to conduct health insurance business in 2014, and estimates their portion of the annual health insurance industry fee payable on September 30, 2014 to be $41. This assessment is not expected to have a material impact on risk based capital in 2014.

83

Statutory-Basis Financial

Statement Schedules

Transamerica Financial Life Insurance Company

Summary of Investments – Other Than

Investments in Related Parties

(Dollars in Thousands)

December 31, 2013

SCHEDULE I

					Amount at
					Which Shown
			Fair		in the
Type of Investment	Cost (1)		Value		Balance Sheet (2)
Fixed maturities
Bonds:
United States government and government agencies and authorities	$	724,271	$	706,791	$	725,734
States, municipalities and political subdivisions		117,278		120,226		117,278
Foreign governments		160,850		157,972		155,936
Hybrid securities		107,181		109,269		107,181
All other corporate bonds		6,512,287		6,828,589		6,507,955
Preferred stocks		1,706		2,715		1,706
Total fixed maturities		7,623,573		7,925,562		7,615,790
Equity securities
Common stocks:
Industrial, miscellaneous and all other		1,616		1,954		1,954
Total common stocks		1,616		1,954		1,954
Mortgage loans on real estate		551,082				551,082
Policy loans		64,552				64,552
Other long-term investments		72,199				72,199
Cash, cash equivalents and short-term investments		74,946				74,946
Securities lending reinvested collateral assets		430,678				430,678
Total investments	$	8,818,646			$	8,811,201

85

Transamerica Financial Life Insurance Company

Supplementary Insurance Information

(Dollars in Thousands)

SCHEDULE III

												Benefits,
												Claims
	Future Policy				Policy and					Net		Losses and			Other
	Benefits and		Unearned		Contract		Premium			Investment		Settlement			Operating
	Expenses		Premiums		Liabilities		Revenue			Income*		Expenses			Expenses*
Year ended December 31, 2013
Individual life	$	869,381	$	—	$	21,570	$	125,537		$	46,663	$	149,294		$	78,876
Individual health		36,307		5,860		6,458		50,477			2,503		33,298			18,435
Group life and health		133,342		1,612		7,592		47,312			7,480		31,284			17,048
Annuity		6,261,077		—		407		5,023,344			350,234		3,923,268			1,380,349
	$	7,300,107	$	7,472	$	36,027	$	5,246,670		$	406,880	$	4,137,144		$	1,494,708
Year ended December 31, 2012
Individual life	$	800,856	$	—	$	13,664	$	112,965		$	43,911	$	114,108		$	111,558
Individual health		33,163		5,194		6,159		46,142			2,470		25,920			17,866
Group life and health		126,870		1,701		7,042		47,758			7,248		29,613			14,835
Annuity		6,685,096		—		437		4,733,483			373,499		3,898,240			1,107,739
	$	7,645,985	$	6,895	$	27,302	$	4,940,348		$	427,128	$	4,067,881		$	1,251,998
Year ended December 31, 2011
Individual life	$	747,711	$	—	$	17,650	$	(392,806	)	$	57,137	$	(244,361	)	$	195,549
Individual health		29,871		5,405		10,749		39,862			2,680		23,875			20,769
Group life and health		121,400		1,764		6,654		40,610			7,514		21,200			18,354
Annuity		6,908,679		—		551		4,738,804			396,199		3,945,524			1,314,829
	$	7,807,661	$	7,169	$	35,604	$	4,426,470		$	463,530	$	3,746,238		$	1,549,501

* 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.

86

Transamerica Financial Life Insurance Company

Reinsurance

(Dollars in Thousands)

SCHEDULE IV

					Assumed					Percentage
			Ceded to		From					of Amount
	Gross		Other		Other		Net			Assumed
	Amount		Companies		Companies		Amount			to Net
Year ended December 31, 2013
Life insurance in force	$	20,734,490	$	205,473,655	$	202,415,889	$	17,676,724			1145	%
Premiums:
Individual life	$	142,754	$	538,079	$	520,862	$	125,537			415	%
Individual health		51,221		950		206		50,477			0	%
Group life and health		59,787		15,247		2,772		47,312			6	%
Annuity		5,015,369		148		8,123		5,023,344			0	%
	$	5,269,131	$	554,424	$	531,963	$	5,246,670			10	%
Year ended December 31, 2012
Life insurance in force	$	19,518,201	$	247,623,959	$	244,178,985	$	16,073,227			1519	%
Premiums:
Individual life	$	133,277	$	641,531	$	621,218	$	112,964			550	%
Individual health		47,094		1,046		94		46,142			0	%
Group life and health		55,273		10,883		3,369		47,759			7	%
Annuity		4,724,707		100		8,876		4,733,483			0	%
	$	4,960,351	$	653,560	$	633,557	$	4,940,348			13	%
Year ended December 31, 2011
Life insurance in force	$	18,982,172	$	260,580,996	$	257,168,145	$	15,569,321			1652	%
Premiums:
Individual life	$	127,831	$	1,127,302	$	606,665	$	(392,806	)		-154	%
Individual health		43,652		3,938		148		39,862			0	%
Group life and health		51,067		14,350		3,893		40,610			10	%
Annuity		4,727,987		134		10,951		4,738,804			0	%
	$	4,950,537	$	1,145,724	$	621,657	$	4,426,470			14	%

87

STATEMENT OF ADDITIONAL INFORMATION

MAY 1, 2004, AS REVISED ON MAY 19, 2004

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A

FLEXIBLE PREMIUM INDIVIDUAL DEFERRED VARIABLE ANNUITY CONTRACT

ISSUED BY

ML LIFE INSURANCE COMPANY OF NEW YORK

HOME OFFICE: 222 BROADWAY

14TH FLOOR

NEW YORK, NEW YORK 10038

SERVICE CENTER: P.O. BOX 44222

JACKSONVILLE, FLORIDA 32231-4222

4804 DEER LAKE DRIVE EAST

JACKSONVILLE, FLORIDA 32246

PHONE: (800) 333-6524

OFFERED THROUGH

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

This individual deferred variable annuity contract (the “Contract”) is designed to provide comprehensive and flexible ways to invest and to create a source of income protection for later in life through the payment of annuity benefits. An annuity is intended to be a long term investment. Contract owners should consider their need for deferred income before purchasing the Contract. The Contract is issued by ML Life Insurance Company of New York (“ML of New York”) both on a nonqualified basis, and as an Individual Retirement Annuity (“IRA”) that is given qualified tax status. The Contract may also be purchased through an established IRA or Roth IRA custodial account with Merrill Lynch, Pierce, Fenner & Smith Incorporated. Transfer amounts from tax sheltered annuity plans that are not subject to the Employee Retirement Income Security Act of 1974, as amended, will be accepted as premium payments, as permitted by law. Other premium payments will not be accepted under a Contract used as a tax sheltered annuity. The Contract is currently not available to be issued as a “stand alone” IRA or as a tax sheltered annuity.

This Statement of Additional Information is not a prospectus and should be read together with the Contract’s Prospectus dated May 1, 2004, which is available on request and without charge by writing to or calling ML of New York at the Service Center address or phone number set forth above.

TABLE OF CONTENTS

	PAGE
OTHER INFORMATION		3
Selling the Contract		3
Financial Statements		3
Administrative Services Arrangements		3
CALCULATION OF YIELDS AND TOTAL RETURNS		3
Money Market Yield		3
Other Subaccount Yields		4
Total Returns		5
FINANCIAL STATEMENTS OF ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A		S-1
FINANCIAL STATEMENTS OF ML LIFE INSURANCE COMPANY OF NEW YORK		G-1

2

OTHER INFORMATION

SELLING THE CONTRACT

The Contracts are offered to the public on a continuous basis. We anticipate continuing to offer the Contracts, but reserve the right to discontinue the offering.

Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Distributor”) serves as principal underwriter for the Contracts. Distributor is a Delaware corporation and its home office is located at 4 World Financial Center, New York, New York 10080. Distributor is an indirect, wholly owned subsidiary of Merrill Lynch & Co., Inc. Distributor is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as well as with the securities commissions in the states in which it operates, and is a member of NASD, Inc. Distributor offers the Contracts through its Financial Advisors. Financial Advisors are appointed as our insurance agents through Merrill Lynch Life Agency Inc.

For the years ended December 31, 2003, 2002, and 2001, Distributor received $138,352, $397,040, and $2,390,915, respectively, in connection with the sale of the Contracts. Distributor retains a portion of commissions it receives in return for its services as distributor for the Contracts.

FINANCIAL STATEMENTS

The financial statements of ML of New York included in this Statement of Additional Information should be distinguished from the financial statements of the Account and should be considered only as bearing upon the ability of ML of New York to meet any obligations it may have under the Contract.

ADMINISTRATIVE SERVICES ARRANGEMENTS

ML of New York has entered into a Service Agreement with its parent, Merrill Lynch Insurance Group, Inc. (“MLIG”) pursuant to which ML of New York can arrange for MLIG to provide directly or through affiliates certain services. Pursuant to this agreement, ML of New York has arranged for MLIG to provide administrative services for the Account and the Contracts, and MLIG, in turn, has arranged for a subsidiary, Merrill Lynch Insurance Group Services, Inc. (“MLIG Services”), to provide these services. Compensation for these services, which will be paid by ML of New York, will be based on the charges and expenses incurred by MLIG Services, and will reflect MLIG Services’ actual costs. For the years ended December 31, 2003, 2002, and 2001, ML of New York paid administrative services fees of $3.4 million, $3.4 million, and $5.0 million, respectively.

CALCULATION OF YIELDS AND TOTAL RETURNS

MONEY MARKET YIELD

From time to time, ML of New York may quote in advertisements and sales literature the current annualized yield for the ML Domestic Money Market V.I. Subaccount for a 7-day period in a manner that does not take into consideration any realized or unrealized gains or losses on shares of the underlying Funds or on their respective portfolio securities. The current annualized yield is computed by: (a) determining the net change (exclusive of realized gains and losses on the sales of securities and unrealized appreciation and depreciation) at the end of the 7-day period in the value of a hypothetical account under a Contract having a balance of 1 unit at the beginning of the period, (b) 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 (c) annualizing this quotient on a 365-day basis. The net change in account value reflects: (1) net income from the Fund attributable to the hypothetical account; and (2) charges and deductions imposed under the Contract which are attributable to the hypothetical account. The charges and deductions include the per unit charges for the hypothetical account for: (1) the asset-based insurance charge; and

3

(2) the annual contract fee. For purposes of calculating current yield for a Contract, an average per unit contract fee is used. Based on our current estimates of average contract size and withdrawals, we have assumed the average per unit contract fee to be 0.00%. Current yield will be calculated according to the following formula:

Current Yield = ((NCF - ES)/UV) X (365/7)

Where:

NCF = the net change in the value of the Fund (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation) for the 7-day period attributable to a hypothetical account having a balance of 1 unit.

ES    = per unit expenses for the hypothetical account for the 7-day period.

UV   = the unit value on the first day of the 7-day period.

ML of New York also may quote the effective yield of the ML Domestic Money Market V.I. Subaccount for the same 7-day period, determined on a compounded basis. The effective yield is calculated by compounding the unannualized base period return according to the following formula:

Effective Yield = (1 + ((NCF - ES)/UV))(365/7) - 1

Where:

NCF = the net change in the value of the Fund (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation) for the 7-day period attributable to a hypothetical account having a balance of 1 unit.

ES    = per unit expenses of the hypothetical account for the 7-day period.

UV   = the unit value for the first day of the 7-day period.

Because of the charges and deductions imposed under the Contract, the yield for the ML Domestic Money Market V.I. Subaccount will be lower than the yield for the corresponding underlying Fund.

The yields on amounts held in the ML Domestic Money Market V.I. 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 actual yield for the subaccount is affected by changes in interest rates on money market securities, average portfolio maturity of the underlying Fund, the types and qualities of portfolio securities held by the Fund and the Fund’s operating expenses. Yields on amounts held in the ML Domestic Money Market V.I. Subaccount may also be presented for periods other than a 7-day period.

OTHER SUBACCOUNT YIELDS

From time to time, ML of New York may quote in sales literature or advertisements the current annualized yield of one or more of the subaccounts (other than the ML Domestic Money Market V.I. Subaccount) for a Contract for a 30-day or one-month period. The annualized yield of a subaccount refers to income generated by the subaccount over a specified 30-day or one-month period. Because the yield is annualized, the yield generated by the subaccount during the 30-day or one-month period is assumed to be generated each period over a 12-month period. The yield is computed by: (1) dividing the net investment income of the Fund attributable to the subaccount units less subaccount expenses for the period; by (2) the maximum offering price per unit on the last day of the period times the daily average number of units outstanding for the period; then (3) compounding that yield for a 6-month period; and then (4) multiplying that result by 2.

4

Expenses attributable to the subaccount include the asset-based insurance charge and the annual contract fee. For purposes of calculating the 30-day or one-month yield, an average contract fee per dollar of contract value in the subaccount is used to determine the amount of the charge attributable to the subaccount for the 30-day or one-month period. Based on our current estimates of average contract size and withdrawals, we have assumed the average contract fee to be 0.00%. The 30-day or one-month yield is calculated according to the following formula:

Yield = 2 X ((((NI - ES)/(U X UV)) + 1)(6) - 1)

Where:

NI  = net investment income of the Fund for the 30-day or one-month period attributable to the subaccount’s units.

ES  = expenses of the subaccount for the 30-day or one-month period.

U    = the average number of units outstanding.

UV = the unit value at the close of the last day in the 30-day or one-month

Currently, ML of New York may quote yields on bond subaccounts. Because of the charges and deductions imposed under the Contracts, the yield for a subaccount will be lower than the yield for the corresponding Fund.

The yield on the amounts held in the subaccounts normally will fluctuate over time. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. A subaccount’s actual yield is affected by the types and quality of portfolio securities held by the corresponding Fund, and its operating expenses.

TOTAL RETURNS

From time to time, ML of New York also may quote in sales literature or advertisements, total returns, including average annual total returns for one or more of the subaccounts for various periods of time. Average annual total returns will be provided for a subaccount for 1, 5 and 10 years, or for a shorter period, if applicable.

Total returns assume the Contract was surrendered at the end of the period shown, and are not indicative of performance if the Contract was continued for a longer period. The Contract does not impose any surrender charge.

5

Average annual total returns for other periods of time may also be disclosed from time to time. For example, average annual total returns may be provided based on the assumption that a subaccount had been in existence and had invested in the corresponding underlying Fund for the same period as the corresponding Fund had been in operation. The Funds and the subaccounts corresponding to the Funds commenced operations as indicated below:

FUND	FUND INCEPTION DATE	SUBACCOUNT INCEPTION DATE
ML Basic Value V.I. Fund	July 1, 1993	July 1, 1993
ML Core Bond V.I. Fund	April 29, 1982	February 21, 1992
ML Domestic Money Market V.I. Fund	February 21, 1992	February 21, 1992
ML Fundamental Growth V.I. Fund	March 28, 2000	April 3, 2000
ML Government Bond V.I. Fund	May 16, 1994	May 16, 1994
ML Index 500 V.I. Fund	December 13, 1996	December 18, 1996
ML International Value V.I. Fund	June 10, 1998	November 21, 2003
ML Small Cap Value V.I. Fund	April 29, 1982	February 21, 1992
MLIG Roszel/Delaware Trend Portfolio	May 1, 2003	May 1, 2003
MLIG Roszel/JP Morgan Small Cap Growth Portfolio	July 1, 2002	July 1, 2002
MLIG Roszel/Lord Abbett Affiliated Portfolio	May 1, 2003	May 1, 2003
MLIG Roszel/Lord Abbett Bond Debenture Portfolio	July 1, 2002	July 1, 2002
MLIG Roszel/Lord Abbett Mid Cap Value Portfolio	July 1, 2002	July 1, 2002
MLIG Roszel/PIMCO CCM Capital Appreciation Portfolio	May 1, 2003	May 1, 2003
MLIG Roszel/PIMCO Small Cap Value Portfolio	July 1, 2002	July 1, 2002
MLIG Roszel/Seligman Mid Cap Growth Portfolio	July 1, 2002	July 1, 2002
AIM V.I. International Growth Fund	May 5, 1993	April 3, 2000
AIM V.I. Premier Equity Fund	May 5, 1993	December 18, 1996
AllianceBernstein Growth and Income Portfolio	January 14, 1991	April 3, 2000
AllianceBernstein Premier Growth Portfolio	June 26, 1992	December 18, 1996
American Century VP Ultra(R) Fund	May 1, 2001	May 1, 2004
Davis Value Portfolio	July 1, 1999	April 3, 2000
Federated Capital Appreciation Fund II	June 19, 2000	May 1, 2004
Federated Kaufmann Fund II	April 30, 2002	May 1, 2004
MFS(R) Emerging Growth Series	July 24, 1995	December 18, 1996
PIMCO Advisors PEA Renaissance Portfolio	July 10, 2002	May 1, 2004
PIMCO Total Return Portfolio	December 31, 1997	April 3, 2000
Seligman Small-Cap Value Portfolio	May 1, 1998	April 3, 2000
Van Kampen LIT Emerging Growth Portfolio	July 3, 1995	April 3, 2000
Van Kampen LIT Comstock Portfolio	April 30, 1999	May 1, 2004

Average annual total returns represent the average annual compounded rates of return that would equate an initial investment of $1,000 under a Contract to the redemption value or 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 generally be as of the most recent calendar quarter-end.

Average annual total returns are calculated using subaccount unit values calculated on each valuation day based on the performance of the corresponding underlying Fund, the deductions for the asset-based insurance charge and the contract fee, and assume a surrender of the Contract at the end of the period for the return quotation (although the Contract does not impose a surrender charge). For purposes of calculating total return, an average per dollar contract fee attributable to the hypothetical account for the period is used. Based on our current estimates of average contract size and withdrawals, we have assumed the average contract fee to be 0.00%. The average annual total return is then calculated according to the following formula:

TR = ((ERV/P)(1/N)) — 1

6

Where:

TR    = the average annual total return net of subaccount recurring charges (such as the asset-based insurance charge and contract fee).

ERV = the ending redeemable value at the end of the period of the hypothetical account with an initial payment of $1,000.

P       = a hypothetical initial payment of $1,000.

N      = the number of years in the period.

From time to time, ML of New York also may quote in sales literature or advertisements total returns for other periods.

From time to time, ML of New York also may quote in sales literature or advertisements total returns or other performance information for a hypothetical Contract assuming the initial premium is allocated to more than one subaccount or assuming monthly transfers from a specified subaccount to one or more designated subaccounts under a dollar cost averaging program. ML of New York also may quote in sales literature or advertisements total returns or other performance information for a hypothetical Contract assuming participation in an asset allocation or rebalancing program. These returns will reflect the performance of the affected subaccount(s) for the amount and duration of the allocation to each subaccount for the hypothetical Contract. They also will reflect the deduction of the charges described above. For example, total return information for a Contract with a dollar cost averaging program for a 12-month period will assume commencement of the program at the beginning of the most recent 12-month period for which average annual total return information is available. This information will assume an initial lump-sum investment in a specified subaccount (the “DCA subaccount”) at the beginning of that period and monthly transfers of a portion of the contract value from the DCA subaccount to designated other subaccount(s) during the 12-month period. The total return for the Contract for this 12-month period therefore will reflect the return on the portion of the contract value that remains invested in the DCA subaccount for the period it is assumed to be so invested, as affected by monthly transfers, and the return on amounts transferred to the designated other subaccounts for the period during which those amounts are assumed to be invested in those subaccounts. The return for an amount invested in a subaccount will be based on the performance of that subaccount for the duration of the investment, and will reflect the charges described above. Performance information for a dollar cost-averaging program also may show the returns for various periods for a designated subaccount assuming monthly transfers to the subaccount, and may compare those returns to returns assuming an initial lump-sum investment in that subaccount. This information also may be compared to various indices, such as the Merrill Lynch 91-day Treasury Bills index or the U.S. Treasury Bills index and may be illustrated by graphs, charts, or otherwise.

7

PART C	OTHER INFORMATION
Item 24.	Financial Statements and Exhibits
(a)	Financial Statements
	All required financial statements are included in Part B of this Registration Statement.
(b)	Exhibits:
	(1)	(a)	Resolution of the Board of Directors establishing the ML of New York Variable Annuity Separate Account A. Note 1
		(b)	Resolution of Board of Directors of Transamerica Financial Life Insurance Company Approving Plan of Merger with Transamerica Advisors Life Insurance Company of New York. Note 14
		(c)	Resolution of Board of Directors of Transamerica Advisors Life Insurance Company of New York Approving Plan of Merger with Transamerica Financial Life Insurance Company. Note 14
	(2)		Not Applicable.
	(3)	(a)	Amended and Restated Principal Underwriting Agreement - Transamerica Financial Life Insurance Company and Transamerica Capital, Inc. Note 2
		(b)	Form of Broker/Dealer Life Insurance Company Product Sales Agreement by and between TCI Securities Corporation and the Broker/Dealer. Note 3
	(4)	(a)	Form of Policy. Note 4
		(b)	Individual Retirement Annuity Endorsement. Note 4
		(c)	Tax-Sheltered Annuity Endorsement. Note 4
		(d)	Qualified Plan Endorsement. Note 4
	(5)	(a)	Form of Application. Note 4
	(6)	(a)	Articles of Incorporation of Transamerica Financial Life Insurance Company. Note 5
		(b)	ByLaws of Transamerica Financial Life Insurance Company. Note 5
	(7)		Not Applicable
	(8)	(a)	Participation Agreement (AIM). Note 6
		(a)(1)	Amendment No. 2 to Participation Agreement (AIM). Note 4
		(a)(2)	Amendment No. 5 to Participation Agreement (AIM). Note 6
		(a)(3)	Amendment No. 6 to Participation Agreement (AIM). Note 6
		(a)(4)	Amendment No. 7 to Participation Agreement (AIM). Note 6
		(a)(5)	Amendment No. 9 to Participation Agreement (AIM). Note 6
		(a)(6)	Amendment No. 10 to Participation Agreement (AIM). Note 7

(b)	Participation Agreement (AllianceBernstein). Note 6
(b)(1)	Amendment No. 4 to Participation Agreement (AllianceBernstein). Note 14
(b)(2)	Amendment No. 7 to Participation Agreement (AllianceBernstein). Note 6
(b)(3)	Amendment No.8 to Participation Agreement (AllianceBernstein). Note 6
(b)(4)	Amendment No. 9 to Participation Agreement (AllianceBernstein). Note 6
(b)(5)	Amendment No. 10 to Participation Agreement (AllianceBernstein). Note 6
(b)(6)	Amendment of Agreements (AllianceBernstein Confidential Information). Note 8
(c)	Participation Agreement (American Century). Note 6
(c)(1)	Amendment No. 1 to Participation Agreement (American Century). Note 6
(c)(2)	Amendment to Agreements (Confidential Agreement) (American Century). Note 8
(c)(3)	Amendment No. 4 to Participation Agreement (American Century). Note 7
(d)	Participation Agreement (BlackRock). Note 6
(d)(1)	Amendment No. 5 to Participation Agreement (BlackRock). Note 6
(d)(2)	Amendment to Fund Participation Agreement (BlackRock). Note 6
(d)(3)	Amendment to Agreements (BlackRock Confidential Information). Note 8
(d)(4)	Amendment No. 8 to Participation Agreement (BlackRock). Note 7
(e)	Participation Agreement (Davis). Note 6
(e)(1)	Amendment to Agreements (Davis Confidential Information). Note 8
(e)(2)	Amendment No. 6 to Participation Agreement (Davis). Note 7
(e)(3)	Amendment No. 7 to Participation Agreement (Davis). Note 7
(f)	Participation Agreement (Federated). Note 9
(f)(1)	Addendum No. 1 to Participation Agreement (Federated). Note 10
(f)(2)	Addendum No. 2 to Participation Agreement (Federated). Note 10
(f)(3)	Amendment to Agreements (Federated Confidential Information). Note 8
(g)	Participation Agreement (MFS). Note 14
(g)(1)	Amendment to Agreements (MFS Confidential Agreement). Note 14
(h)	Participation Agreement (PIMCO). Note 6
(h)(1)	Amendment No. 1 to Participation Agreement (PIMCO). Note 6

	(h)(2)	Amendment No. 3 to Participation Agreement (PIMCO). Note 6
	(h)(3)	Amendment No. 6 to Participation Agreement (PIMCO). Note 14
	(h)(4)	Amendment No. 7 to Participation Agreement (PIMCO). Note 7
	(i)	Participation Agreement (Columbia/Seligman). Note 6
	(i)(1)	Amendment No. 2 to Participation Agreement (Columbia/Seligman). Note 6
	(i)(2)	Amendment to Agreements (Columbia Confidential Information). Note 11
	(j)	Participation Agreement (TST). Note 12
	(j)(2)	Amendment No. 3 to Participation Agreement (TST). Note 13
	(j)(3)	Amendment No. 6 to Participation Agreement (TST). Note 7
	(j)(4)	Amendment No. 7 to Participation Agreement (TST). Note 7
	(j)(5)	Schedule A Revision to Participation Agreement 2.5.14 (TST). Note 7
(9)		Opinion of Counsel. Note 14
(10)		Consent of Independent Registered Public Accounting Firm. Note 14
(11)		Not applicable.
(12)		Not applicable.
(13)		Powers of Attorney. Elizabeth Belanger, Steven E. Frushtick, John T. Mallett, Eric J. Martin, Marc Cahn, C. Michiel van Katwijk, Peter G. Kunkel, William Brown, Jr. and Peter P. Post. Note 14

Note 1.	Incorporated herein by reference to Post-Effective Amendment No. 10 to Form N-4 Registration Statement (File No. 33-43654) filed on December 9, 1996.
Note 2.	Incorporated herein by reference to Initial Filing to Form N-4 Registration Statement (File No. 333-187916) filed on April 15, 2013.
Note 3.	Incorporated herein by reference to Initial Filing to Form N-4 Registration Statement (File No. 333-185574) filed on December 20, 2012.
Note 4	Incorporated herein by reference to Initial Filing to Form N-4 Registration Statement (File No. 333-34894) filed on April 17, 2000.
Note 5.	Incorporated herein by reference to Pre-Effective Amendment No. 1 to form N-4 Registration Statement (File No. 333-172715) filed on May 6, 2011.
Note 6.	Incorporated herein by reference to Post-Effective Amendment No. 6 to Form N-4 Registration Statement (file No. 333-69220) filed on December 3, 2010.
Note 7.	Incorporated herein by reference to Post-Effective Amendment No. 13 to Form N-4 Registration Statement (File No. 333-119611) dated April 21, 2014.

Note 8.	Incorporated herein by reference to Post-Effective Amendment No. 36 to Form N-4 Registration Statement (File No. 33-43773) dated September 10, 2012.
Note 9	Incorporated herein by reference to Post-Effective Amendment No. 11 to Form N-4 Registration Statement (File No. 333-119611) filed on April 23, 2012.
Note 10	Incorporated herein by reference to Post-Effective Amendment No. 12 to Form N-4 Registration Statement (File No. 333-119611) filed on April 24, 2013.
Note 11	Incorporated herein by reference to Post-Effective Amendment No. 9 to Form N-4 Registration Statement (File No. 333-146323) filed on April 25, 2013.
Note 12.	Incorporated herein by reference to Post-Effective Amendment No. 7 to Form N-4 Registration Statement (File No. 333-119611) filed on April 28, 2009.
Note 13.	Incorporated herein by reference to Post-Effective Amendment No. 10 to Form N-4 Registration Statement (File No. 333-119611) filed on April 28, 2011.
Note 14.	Filed herewith.

Item 25. Directors and Officers of the Depositor (Transamerica Financial Life Insurance Company)

Name and Business Address	Principal Positions and Offices with Depositor
William Brown, Jr. 14 Windward Avenue White Plains, NY 10605	Director
Steven E. Frushtick 500 5th Avenue New York, NY 10110	Director
Peter P. Post 36 Brookridge Drive Greenwich, CT 06830	Director
Marc Cahn 440 Mamaroneck Avenue Harrison, NY 10528	Director, Senior Vice President, Assistant Secretary and Division General Counsel
Eric J. Martin 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001	Controller
Peter G. Kunkel 440 Mamaroneck Avenue Harrison, NY 10528	Director, President and Chairman of the Board
Elizabeth Belanger 440 Mamaroneck Avenue Harrison, NY 10528	Director and Vice President
C. Michiel van Katwijk 100 Light Street Baltimore, MD 21202	Senior Vice President and Treasurer
John T. Mallett 4333 Edgewood Rd, N.E. Cedar Rapids, IA 52499	Director and Vice President
Darin D. Smith 4333 Edgewood Rd. N.E. Cedar Rapids, IA 52499	Vice President, Assistant Secretary and Managing Assistant General Counsel

Item 26. Persons Controlled by or under Common Control with the Depositor or Registrant.

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
25 East 38th Street, LLC	Delaware	Sole Member: Yarra Rapids, LLC	Real estate investments
239 West 20th Street, LLC	Delaware	Sole Member: Yarra Rapids, LLC	Real estate investments
313 East 95th Street, LLC	Delaware	Sole Member: Yarra Rapids, LLC	Real estate investments
319 East 95th Street, LLC	Delaware	Sole Member: Yarra Rapids, LLC	Real estate investments
44764 Yukon Inc.	Canada	100% Creditor Resources, Inc.	Holding company
AEGON Alliances, Inc.	Virginia	100% Commonwealth General Corporation	Insurance company marketing support
AEGON Asset Management Services, Inc.	Delaware	100% AUSA Holding Company	Registered investment advisor
AEGON Assignment Corporation	Illinois	100% AEGON Financial Services Group, Inc.	Administrator of structured settlements
AEGON Assignment Corporation of Kentucky	Kentucky	100% AEGON Financial Services Group, Inc.	Administrator of structured settlements
AEGON Canada ULC	Canada	AEGON Canada Holding B.V. owns 174,588,712 shares of Common Stock; 1,500 shares of Series II Preferred stock; 2 shares of Series III Preferred stock. TIHI Canada Holding, LLC owns 1,441,941.26 shares of Class B - Series I Preferred stock.	Holding company
AEGON Capital Management Inc.	Canada	100% AEGON Asset Management (Canada) B.V.	Portfolio management company/investment advisor
AEGON-CMF GP, LLC	Delaware	Transamerica Realty Services, Inc. is sole Member	Investment in commercial mortgage loans
AEGON Core Mortgage Fund, LP	Delaware	Partners: AEGON USA Realty Advisors, LLC (99%); AEGON-CMF GP, LLC (1%)	Investment in mortgages
AEGON Direct & Affinity Marketing Services Australia Pty Limited	Australia	100% Transamerica Direct Marketing Asia Pacific Pty Ltd.	Marketing/operations company
AEGON Direct & Affinity Marketing Services Co., Ltd.	Japan	100% AEGON DMS Holding B.V.	Marketing company
AEGON Direct & Affinity Marketing Services Limited	Hong Kong	100% AEGON DMS Holding B.V.	Provide consulting services ancillary to the marketing of insurance products overseas.
AEGON Direct & Affinity Marketing Services (Thailand) Limited	Thailand	97% Transamerica International Direct Marketing Consultants, LLC; remaining 3% held by various AEGON employees	Marketing of insurance products in Thailand
AEGON Direct Marketing Services, Inc.	Maryland	Monumental Life Insurance Company owns 103,324 shares; Commonwealth General Corporation owns 37,161 shares	Marketing company
AEGON Direct Marketing Services Europe Ltd.	United Kingdom	100% Cornerstone International Holdings, Ltd.	Marketing

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AEGON Direct Marketing Services Insurance Broker (HK) Limited	Hong Kong	100% AEGON Direct Marketing Services Hong Kong Limited	Brokerage company
AEGON Direct Marketing Services International, Inc.	Maryland	100% AUSA Holding Company	Marketing arm for sale of mass marketed insurance coverage
AEGON Direct Marketing Services Korea Co., Ltd.	Korea	100% AEGON DMS Holding B.V.	Provide consulting services ancillary to the marketing of insurance products overseas.
AEGON Direct Marketing Services Mexico, S.A. de C.V.	Mexico	100% AEGON DMS Holding B.V.	Provide management advisory and technical consultancy services.
AEGON Direct Marketing Services Mexico Servicios, S.A. de C.V.	Mexico	100% AEGON DMS Holding B.V.	Provide marketing, trading, telemarketing and advertising services in favor of any third party, particularly in favor of insurance and reinsurance companies.
AEGON Direct Marketing Services, Inc.	Taiwan	100% AEGON DMS Holding B.V.	Authorized business: Enterprise management consultancy, credit investigation services, to engage in business not prohibited or restricted under any law of R.O.C., except business requiring special permission of government.
AEGON Financial Services Group, Inc.	Minnesota	100% Transamerica Life Insurance Company	Marketing
AEGON Fund Management Inc.	Canada	100% AEGON Asset Management (Canada) B.V.	Mutual fund manager
AEGON Funding Company, LLC.	Delaware	100% AEGON USA, LLC	Issue debt securities-net proceeds used to make loans to affiliates
AEGON Institutional Markets, Inc.	Delaware	100% Commonwealth General Corporation	Provider of investment, marketing and administrative services to insurance companies
AEGON Life Insurance Agency Inc.	Taiwan	100% AEGON Direct Marketing Services, Inc. (Taiwan Domiciled)	Life insurance
AEGON Managed Enhanced Cash, LLC	Delaware	Members: Transamerica Life Insurance Company (91.2389%) ; Monumental Life Insurance Company (8.7611%)	Investment vehicle for securities lending cash collateral
AEGON Management Company	Indiana	100% AEGON U.S. Holding Corporation	Holding company
AEGON N.V.	Netherlands	22.446% of Vereniging AEGON Netherlands Membership Association	Holding company
AEGON Structured Settlements, Inc.	Kentucky	100% Commonwealth General Corporation	Administers structured settlements of plaintiff’s physical injury claims against property and casualty insurance companies.
AEGON U.S. Holding Corporation	Delaware	100% Transamerica Corporation	Holding company
AEGON USA Asset Management Holding, LLC	Iowa	100% AUSA Holding Company	Holding company
AEGON USA Investment Management, LLC	Iowa	100% AEGON USA Asset Management Holding, LLC	Investment advisor
AEGON USA Real Estate Services, Inc.	Delaware	100% AEGON USA Realty Advisors, Inc.	Real estate and mortgage holding company

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AEGON USA Realty Advisors, LLC	Iowa	Sole Member - AEGON USA Asset Management Holding, LLC	Administrative and investment services
AEGON USA Realty Advisors of California, Inc.	Iowa	100% AEGON USA Realty Advisors, Inc.	Investments
AEGON USA, LLC	Iowa	100% AEGON U.S. Holding Corporation	Holding company
AFSG Securities Corporation	Pennsylvania	100% Commonwealth General Corporation	Inactive
ALH Properties Eight LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Eleven LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Four LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Nine LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Seven LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Seventeen LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Sixteen LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Ten LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Twelve LLC	Delaware	100% FGH USA LLC	Real estate
ALH Properties Two LLC	Delaware	100% FGH USA LLC	Real estate
American Bond Services LLC	Iowa	100% Transamerica Life Insurance Company (sole member)	Limited liability company
AMTAX HOLDINGS 308, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 347, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 388, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 483, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 546, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 559, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AMTAX HOLDINGS 561, LLC	Ohio	TAHP Fund VII, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 567, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 588, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 613, LLC	Ohio	Garnet LIHTC Fund VII, LLC - 99% member; Cupples State LIHTC Investors, LLC - 1% member; TAH Pentagon Funds, LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 639, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 649, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 672, LLC	Ohio	TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
AMTAX HOLDINGS 713, LLC	Ohio	TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager	Affordable housing
Apollo Housing Capital Arrowhead Gardens, LLC	Delaware	Garnet LIHTC Fund XXXV, LLC - sole Member	Affordable housing
ARV Pacific Villas, A California Limited Partnership	California	Partners: Transamerica Affordable housing - 0.05% General Partner; non-AEGON affiliate, Jamboree Housing Corporation - 0.05% Managing General Partner; Transamerica Life Insurance Company - 67% Limited Partner; Monumental Life Insurance Company - 32% Limited Partner	Property
Asia Business Consulting Company	China	100% Asia Investments Holdings, Limited	Provide various services upon request from Beijing Dafu Insurance Agency.
Asia Investment Holding Limited	Hong Kong	99% Transamerica Life Insurance Company	Holding company
AUSA Holding Company	Maryland	100% AEGON USA, LLC	Holding company
AUSA Properties, Inc.	Iowa	100% AUSA Holding Company	Own, operate and manage real estate

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
AXA Equitable AgriFinance, LLC	Delaware	Members: AEGON USA Realty Advisors, LLC (50%); AXA Equitable Life Insurance Company, a non-affiliate of AEGON (50%)	Agriculturally-based real estate advisory services
Bay Area Community Investments I, LP	California	Partners: 69.995% Transamerica Life Insurance Company; 29.995% Monumental Life Insurance Company; 0.01% Transamerica Affordable housing, Inc.	Investments in low income housing tax credit properties
Bay State Community Investments I, LLC	Delaware	100% Monumental Life Insurance Company	Investments in low income housing tax credit properties
Bay State Community Investments II, LLC	Delaware	100% Monumental Life Insurance Company	Investments in low income housing tax credit properties
Beijing Dafu Insurance Agency Co. Ltd.	Peoples Republic of China	10% owned by WFG China Holdings, Inc.; 90% owned by private individual (non-AEGON associated)	Insurance Agency
Canadian Premier Life Insurance Company	Canada	100% Transamerica Life Canada	Insurance company
CBC Insurance Revenue Securitization, LLC	Delaware	100% Clark Consulting, LLC	Special purpose
Cedar Funding, Ltd.	Cayman Islands	100% Transamerica Life Insurance Company	Investments
Clark, LLC	Delaware	Sole Member - Diversified Retirement Corporation	Holding company
Clark Consulting, LLC	Delaware	100% Clark, LLC	Financial consulting firm
Clark Investment Strategies, inc.	Delaware	100% Clark Consulting, LLC	Registered investment advisor
Clark Securities, Inc.	California	100% Clark Consulting, LLC	Broker-Dealer
Commonwealth General Corporation	Delaware	100% AEGONUSA, LLC	Holding company
Consumer Membership Services Canada Inc.	Canada	100% AEGON Canada ULC	Marketing of credit card protection membership services in Canada
Cornerstone International Holdings Ltd.	UK	100% AEGON DMS Holding B.V.	Holding company
CRG Insurance Agency, Inc.	California	100% Clark Consulting, Inc.	Insurance agency
Creditor Resources, Inc.	Michigan	100% AUSA Holding Company	Credit insurance
CRI Canada Ltd.	Canada	44764 Yukon Inc. owns all preferred shares of stock; various non-AEGON entities/investors own comon shares of stock	Holding company
CRI Solutions Inc.	Maryland	100% Creditor Resources, Inc.	Sales of reinsurance and credit insurance
Cupples State LIHTC Investors, LLC	Delaware	100% Garnet LIHTC Fund VIII, LLC	Investments
Erfahrungsschatz GmbH	Germany	100% Cornerstone International Holdings, Ltd.	Marketing/membership
FD TLIC, Limited Liability Company	New York	100% Transamerica Life Insurance Company	Broadway production

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
FD TLIC Ltd.	United Kingdom	100% FD TLIC, LLC	Theatre production
FGH Realty Credit LLC	Delaware	100% FGH USA, LLC	Real estate
FGH USA LLC	Delaware	100% RCC North America LLC	Real estate
FGP 90 West Street LLC	Delaware	100% FGH USA LLC	Real estate
FGP West Mezzanine LLC	Delaware	100% FGH USA LLC	Real estate
FGP West Street LLC	Delaware	100% FGP West Mezzanine LLC	Real estate
FGP West Street Two LLC	Delaware	100% FGH USA LLC	Real estate
Fifth FGP LLC	Delaware	100% FGH USA LLC	Real estate
Financial Planning Services, Inc.	District of Columbia	100% Commonwealth General Corporation	Special-purpose subsidiary
First FGP LLC	Delaware	100% FGH USA LLC	Real estate
Fong LCS Associates, LLC	Delaware	100% Investors Warranty of America, Inc.	Investments
Fourth & Market Funding, LLC	Delaware	Commonwealth General Corporation owns 0% participating percentage, but is Managing Member. Ownership: 99% Monumental Life Insurance Company and 1% Garnet Assurance Corporation II	Inactive
Fourth FGP LLC	Delaware	100% FGH USA LLC	Real estate
Garnet Assurance Corporation	Kentucky	100%Transamerica Life Insurance Company	Investments
Garnet Assurance Corporation II	Iowa	100% Commonwealth General Corporation	Business investments
Garnet Assurance Corporation III	Iowa	100% Transamerica Life Insurance Company	Business investments
Garnet Community Investments, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments II, LLC	Delaware	100% Monumental Life Insurance Company	Securities
Garnet Community Investments III, LLC	Delaware	100%Transamerica Life Insurance Company	Business investments
Garnet Community Investments IV, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments V, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments VI, LLC	Delaware	100% Monumental Life Insurance Company	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet Community Investments VII, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments VIII, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments IX, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments X, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments XI, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments XII, LLC	Delaware	100% Monumental Life Insurance Company	Investments
Garnet Community Investments XVIII, LLC	Delaware	100% Transamerica Life Insurance Company	Investments
Garnet Community Investments XX, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXIV, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Real estate investments
Garnet Community Investments XXV, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investment XXVI, LLC	Delaware	100% Transamerica Life Insurance Company	Investments
Garnet Community Investments XXVII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investment XXVIII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXIX, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXX, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXI, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
Garnet Community Investments XXXIII, LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Investments
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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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	Invesments
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 LIHTC Fund II, LLC	Delaware	Members: Garnet Community Investments II, LLC (99.99%); Transamerica Life Insurance Company (0.01%)	Investments
Garnet LIHTC Fund III, LLC	Delaware	Members: Garnet Community Investments III, LLC (0.01%); Jefferson-Pilot Life Insurance Company, a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund IV, LLC	Delaware	Members: Garnet Community Investments IV, LLC (0.01%); Goldenrod Asset Management, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund V, LLC	Delaware	Members: Garnet Community Investments V, LLC (0.01%); Lease Plan North America, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund VI, LLC	Delaware	Members: Garnet Community Investments VI, LLC (0.01%); Pydna Corporation, a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund VII, LLC	Delaware	Members: Garnet Community Investments VII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate(99.99%)	Investments
Garnet LIHTC Fund VIII, LLC	Delaware	Members: Garnet Community Investments VIII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate(99.99%)	Investments
Garnet LIHTC Fund IX, LLC	Delaware	Members: Garnet Community Investments IX, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund X, LLC	Delaware	Members: Garnet Community Investments X, LLC (0.01%); Goldenrod Asset Management, a non-AEGON affiliate (99.99%)	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund XI, LLC	Delaware	Members: Garnet Community Investments XI, LLC (0.01%); NorLease, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XII, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); and the following non-AEGON affiliates: Bank of America, N.A.( 73.39%); J.P. Morgan Chase Bank, N.A. (13.30%); NorLease, Inc. (13.30%)	Investments
Garnet LIHTC Fund XII-A, LLC	Delaware	Garnet Community Investments XII, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XII-B, LLC	Delaware	Garnet Community Investments XII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XII-C, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); NorLease, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIII, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); and the following non-AEGON affiliates: Bank of America, N.A.( 73.39%); J.P. Morgan Chase Bank, N.A. (13.30%); NorLease, Inc. (13.30%)	Investments
Garnet LIHTC Fund XIII-A, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIII-B, LLC	Delaware	Garnet Community Investments XII, LLC (.01%); Norlease, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIV, LLC	Delaware	0.01% Garnet Community Investments, LLC; 49.995% Wells Fargo Bank, N.A.; and 49.995% Goldenrod Asset Management, Inc.	Investments
Garnet LIHTC Fund XV, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XVI, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); FNBC Leasing Corporation, a non-AEGON entity (99.99%)	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Garnet LIHTC Fund XVII, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); ING USA Annuity and Life Insurance company, a non-affiliate of AEGON (12.999%), and ReliaStar Life Insurance Company, a non-affiliate of AEGON (86.991%).	Investments
Garnet LIHTC Fund XVIII, LLC	Delaware	Members: Garnet Community Investments XVIII, LLC (0.01%); Verizon Capital Corp., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XIX, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XX, LLC	Delaware	Sole Member - Garnet Community Investments XX, LLC	Investments
Garnet LIHTC Fund XXI, LLC	Delaware	100% Garnet Community Investments, LLC	Investments
Garnet LIHTC Fund XXII, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Norlease, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XXIII, LLC	Delaware	Members: Garnet Community Investments, LLC (0.01%); Idacorp Financial Services, Inc., a non-AEGON affiliate (99.99%)	Investments
Garnet LIHTC Fund XXIV, LLC	Delaware	Members: Garnet Community Investments XXIV, LLC (0.01% as Managing Member); Transamerica Life Insurance Company (21.26%); non-affiliates of AEGON: New York Life Insurance Company (25.51%), New York Life Insurance and Annuity Corporation (21.73%) 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 Brank 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%)	Real estate investments
Garnet LIHTC Fund XXIX, LLC	Delaware	Members: Garnet Community Investments XXIX, LLC (.01%); non-affiliate of AEGON: Bank of America, N.A. (99.99%)	Investments
Garnet LIHTC Fund XXX, LLC	Delaware	Garnet Community Investments XXX, LLC (0.01%); non-affiliate of AEGON, New York Life Insurance Company (99.99%)	Investments
Garnet LIHTC Fund XXXI, LLC	Delaware	Members: Garnet Community Investments XXXI, LLC (0.1%); non-affiliates of AEGON: Thunderbolt Peak Fund, LLC (98.99%); Google Affordable housing I, LLC (1%)	Investments
Garnet LIHTC Fund XXXII, LLC	Delaware	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: non-AEGON affiliate, U.S. Bancorp Community Development Corporation (99.99%); Garnet Community Investments XXXIV, LLC (.01%)	Investments
Garnet LIHTC Fund XXXV, LLC	Delaware	Members: Garnet Community Investment XXXV, LLC (0.01%); non-affiliate of AEGON, Microsoft Corporation (99.99%)	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
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
Garnet LIHTC Fund XXXVIII, LLC	Delaware	Sole Member - Garnet Community Investments XXXVIII, LLC	Investments
Garnet LIHTC Fund XXXIX, LLC	Delaware	Sole Member - Garnet Community Investments XXXIX, LLC	Investments
Garnet LIHTC Fund XL, LLC	Delaware	Sole Member - Garnet Community Investments XL, LLC	Investments
Global Preferred Re Limited	Bermuda	100% AEGON USA, LLC	Reinsurance
Harbor View Re Corp.	Hawaii	100% Commonwealth General Corporation	Captive insurance company
Horizons Acquisition 5, LLC	Florida	Sole Member - PSL Acquisitions Operating, LLC	Development company
Horizons St. Lucie Development, LLC	Florida	Sole Member - PSL Acquisitions Operating, LLC	Development company
Imani Fe, LP	California	Partners: Garnet LIHTC Fund XIV, LL (99.99% investor limited partner); Transamerica Affordable housing, Inc. (non-owner manager); non-affiliates of AEGON: ABS Imani Fe, LLC (.0034% class A limited partner); Central Valley Coalition for Affordable housing (.0033% co-managing general partner); Grant Housing and Economic Development Corporation (.0033% managing partner)	Affordable housing
Intersecurities Insurance Agency, Inc.	California	100% Western Reserve Life Assurance Co. of Ohio	Insurance agency
Interstate North Office Park GP, LLC	Delaware	100% Interstate North Office Park Owner, LLC	Investments
Interstate North Office Park, LP	Delaware	100% Interstate North Office Park Owner, LLC	Investments
Interstate North Office Park Owner, LLC	Delaware	100% Investors Warranty of America, Inc.	Investments
Interstate North Office Park (Land) GP, LLC	Delaware	100% Interstate North Office Park Owner, LLC	Investments
Interstate North Office Park (Land) LP	Delaware	100% Interstate North Office Park Owner, LLC	Investments

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Investors Warranty of America, Inc.	Iowa	100% AUSA Holding Company	Leases business equipment
LCS Associates, LLC	Delaware	100% Investors Warranty of America, Inc.	Investments
Legacy General Insurance Company	Canada	100% AEGON Canada ULC	Insurance company
Life Investors Alliance LLC	Delaware	Sole Member - Transamerica Life Insurance Company	Purchase, own, and hold the equity interest of other entities
LIICA Holdings, LLC	Delaware	Sole Member: Transamerica Life Insurance Company	To form and capitalize LIICA Re I, Inc.
LIICA Re I, Inc.	Vermont	100% LIICA Holdings, LLC	Captive insurance company
LIICA Re II, Inc.	Vermont	100% Transamerica Life Insurance Company	Captive insurance company
Massachusetts Fidelity Trust Company	Iowa	100% AUSA Holding Company	Trust company
McDonald Corporate Tax Credit Fund IV Limited Partnership	Delaware	Partners: Monumental Life Insurance Company - 99.9% General Partner; TAH-McD IV, LLC - 0.10% General Partner	Tax credit fund
MLIC Re I, Inc.	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company
Money Services, Inc.	Delaware	100% AUSA Holding Company	Provides financial counseling for employees and agents of affiliated companies
Monumental Financial Services, Inc.	Maryland	100% AEGON USA, LLC	DBA in the State of West Viriginia for United Financial Services, Inc.
Monumental General Administrators, Inc.	Maryland	100% AUSA Holding Company	Provides management services to unaffiliated third party administrator
Monumental Life Insurance Company	Iowa	87.72% Commonwealth General Corporation; 12.28% AEGON USA, LLC	Insurance Company
nVISION Financial, Inc.	Iowa	100% AUSA Holding Company	Special-purpose subsidiary
New Markets Community Investment Fund, LLC	Iowa	50% AEGON Institutional Markets, Inc.; 50% AEGON USA Realty Advisors, Inc.	Community development entity
Oncor Insurance Services, LLC	Iowa	Sole Member - Life Investors Financial Group, Inc.	Direct sales of term life insurance
Pearl Holdings, Inc. I	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
Pearl Holdings, Inc. II	Delaware	100% AEGON USA Asset Management Holding, LLC	Holding company
Peoples Benefit Services, LLC	Pennsylvania	Sole Member - Stonebridge Life Insurance Company	Special-purpose subsidiary
Pine Falls Re, Inc.	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Primus Guaranty, Ltd.	Bermuda	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: Investors Warranty of America, Inc.	Owner of Core subsidiary entities
Pyramid Insurance Company, Ltd.	Hawaii	100% Transamerica Corporation	Property & Casualty Insurance
RCC North America LLC	Delaware	100% AEGON USA, LLC	Real estate
Real Estate Alternatives Portfolio 1 LLC	Delaware	Members: Transamerica Life Insurance Company (90.96%); Monumental Life Insurance Company (6.30%); Transamerica Financial Life Insurance Company (2.74%). Manager: AEGON USA Realty Advisors, Inc.	Real estate alternatives investment
Real Estate Alternatives Portfolio 2 LLC	Delaware	Members are: Transamerica Life Insurance Company (90.25%); Transamerica Financial Life Insurance Company (7.5%); Stonebridge Life Insurance Company (2.25%). Manager: AEGON USA Realty Advisors, Inc.	Real estate alternatives investment
Real Estate Alternatives Portfolio 3 LLC	Delaware	Members are: Transamerica Life Insurance Company (73.4%); Monumental Life Insurance Company (25.6%); Stonebridge Life Insurance Company (1%). Manager: AEGON USA Realty Advisors, Inc.	Real estate alternatives investment
Real Estate Alternatives Portfolio 3A, Inc.	Delaware	Members: Monumental Life Insurance Company (37%); Transamerica Financial Life Insurance Company (9.4%); Transamerica Life Insurance Company (52.6%); Stonebridge Life Insurance Company (1%)	Real estate alternatives investment
Real Estate Alternatives Portfolio 4 HR, LLC	Delaware	Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty Advisors, Inc.	Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common investment
Real Estate Alternatives Portfolio 4 MR, LLC	Delaware	Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty Advisors, Inc.	Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common investment
Realty Information Systems, Inc.	Iowa	100% Transamerica Realty Services, LLC	Information Systems for real estate investment management

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Retirement Project Oakmont	California	General Partner: Transamerica Oakmont Retirement Associates, a CA limited partnership; Transamerica Life Insurance Company (limited partner); and Oakmont Gardens, a CA limited partnership (non-AEGON entity limited partner). General Partner of Transamerica Oakmont Retirement Associates is Transamerica Oakmont Corporation. 100 units of limited partnership interests widely held by individual investors.	Senior living apartment complex
River Ridge Insurance Company	Vermont	100% AEGON Management Company	Captive insurance company
Second FGP LLC	Delaware	100% FGH USA LLC	Real estate
Selient Inc.	Canada	100% AEGON Canada ULC	Application service provider providing loan origination platforms to Canadian credit unions.
Seventh FGP LLC	Delaware	100% FGH USA LLC	Real estate
Short Hills Management Company	New Jersey	100% AEGON U.S. Holding Corporation	Dormant
Southwest Equity Life Insurance Company	Arizona	Voting common stock is allocated 75% of total cumulative vote - AEGON USA, LLC. Participating Common stock (100% owned by non-AEGON shareholders) is allocated 25% of total cumulative vote.	Insurance
St. Lucie West Development Company, LLC	Florida	Sole Member - PSL Acquisitions Operating, LLC	Development company
Stonebridge Benefit Services, Inc.	Delaware	100% Commonwealth General Corporation	Health discount plan
Stonebridge Casualty Insurance Company	Ohio	100% AEGON USA, LLC	Insurance company
Stonebridge International Insurance Ltd.	UK	100% Cornerstone International Holdings Ltd.	General insurance company
Stonebridge Life Insurance Company	Vermont	100% Commonwealth General Corporation	Insurance company
Stonebridge Reinsurance Company	Vermont	100% Stonebridge Life Insurance Company	Captive insurance company
TAH-MCD IV, LLC	Iowa	Sole Member - Transamerica Affordable housing, Inc.	Serve as the general partner for McDonald Corporate Tax Credit Fund IV Limited Partnership
TAH Pentagon Funds, LLC	Iowa	Sole Member - Transamerica Affordable housing, Inc.	Serve as a general partner in a lower-tier tax credit entity

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
TAHP Fund I, LLC	Delaware	Sole Member - Monumental Life Insurance Company	Real estate investments
TAHP Fund II, LLC	Delaware	Sole Member - Garnet LIHTC Fund VIII, LLC	Low incoming housing tax credit
TAHP Fund VII, LLC	Delaware	Investor Member: Garnet LIHTC Fund XIX, LLC	Real estatement investments
TCF Asset Management Corporation	Colorado	100% TCFC Asset Holdings, Inc.	A depository for foreclosed real and personal property
TCFC Air Holdings, Inc.	Delaware	100% Transamerica Commercial Finance Corporation, I	Holding company
TCFC Asset Holdings, Inc.	Delaware	100% Transamerica Commercial Finance Corporation, I	Holding company
The AEGON Trust Advisory Board: Mark W. Mullin, Alexander R. Wynaendts, and Craig D. Vermie	Delaware	100% AEGON International B.V.	Voting Trust
The RCC Group, Inc.	Delaware	100% FGH USA LLC	Real estate
THH Acquisitions, LLC	Iowa	Sole Member - Investors Waranty of America, Inc.	Acquirer of Core South Carolina mortgage loans from Investors Warranty of America, Inc. and holder of foreclosed real estate.
TIHI Canada Holding, LLC	Iowa	Sole Member - Transamerica International Holdings, Inc.	Holding company
TLIC Riverwood Reinsurance, Inc.	Iowa	100% Transamerica Life Insurance Company	Limited purpose subsidiary life insurance company
Tradition Development Company, LLC	Florida	Sole Member - PSL Acquisitions Operating, LLC	Development company
Tradition Irrigation Company, LLC	Florida	Sole Member - PSL Acquisitions Operating, LLC	Irrigation company
Tradition Land Company, LLC	Iowa	Sole Member: Investors Warranty of America, Inc.	Aquirer of Core Florida mortgage loans from Investors Warranty and holder of foreclosed read estate.
Transamerica Accounts Holding Corporation	Delaware	100% TCFC Asset Holdings, Inc.	Holding company
Transamerica Advisors Life Insurance Company	Arkansas	100% AEGON USA, LLC	Insurance company
Transamerica Advisors Life Insurance Company of New York	New York	100% AEGON USA, LLC	Insurance company
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

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Agency Network, Inc.	Iowa	100% AUSA Holding Company	Special purpose subsidiary
Transamerica Annuity Service Corporation	New Mexico	100% Transamerica International Holdings, Inc.	Performs services required for structured settlements
Transamerica Asset Management, Inc.	Florida	Western Reserve Life Assurance Co. of Ohio owns 77%; AUSA Holding Co. owns 23%.	Fund advisor
Transamerica Aviation LLC	Delaware	100% TCFC Air Holdings, Inc.	Special purpose corporation
Transamerica (Bermuda) Services Center, Ltd.	Bermuda	100% AEGON International B.V.	Special purpose corporation
Transamerica Capital, Inc.	California	100% AUSA Holding Company	Broker/Dealer
Transamerica Commercial Finance Corporation, I	Delaware	100% Transamerica Finance Corporation	Holding company
Transamerica Consumer Finance Holding Company	Delaware	100% TCFC Asset Holdings, Inc.	Consumer finance holding company
Transamerica Corporation	Delaware	100% The AEGON Trust	Major interest in insurance and finance
Transamerica Corporation	Oregon	100% Transamerica Corporation	Holding company
Transamerica Direct Marketing Asia Pacific Pty Ltd.	Australia	100% AEGON DMS Holding B.V.	Holding company
Transamerica Direct Marketing Consultants Private Limited	India	99.95% AEGON DMS Holding B.V.; non-AEGON affiliate, Keshav Sunderraj owns .05%	Marketing consultant
Transamerica Distribution Finance - Overseas, Inc.	Delaware	100% TCFC Asset Holdings, Inc.	Commercial Finance
Transamerica Finance Corporation	Delaware	100% Transamerica Corporation	Commercial & Consumer Lending & equipment leasing
Transamerica Financial Advisors, Inc.	Delaware	1,000 shares owned by AUSA Holding Company; 209 shares owned by Transamerica International Holdings, Inc.; 729 shares owned by AEGON Asset Management Services, Inc.	Broker/Dealer
Transamerica Financial Life Insurance Company	New York	87.40% AEGON USA, LLC; 12.60% Transamerica Life Insurance Company	Insurance
Transamerica Fund Services, Inc.	Florida	Western Reserve Life Assurance Co. of Ohio owns 44%; AUSA Holding Company owns 56%	Mutual fund
Transamerica Funding LP	U.K.	99% Transamerica Leasing Holdings, Inc.; 1% Transamerica Commercial Finance Corporation, I	Intermodal leasing
Transamerica Home Loan	California	100% Transamerica Consumer Finance Holding Company	Consumer mortgages

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Insurance Marketing Asia Pacific Pty Ltd.	Australia	100% Transamerica Direct Marketing Asia Pacific Pty Ltd.	Insurance intermediary
Transamerica International Direct Marketing Consultants, LLC	Maryland	51% Hugh J. McAdorey; 49% AEGON Direct Marketing Services, Inc.	Provide consulting services ancillary to the marketing of insurance products overseas.
Transamerica International Holdings, Inc.	Delaware	100% AEGON USA, LLC	Holding company
Transamerica International RE (Bermuda) Ltd.	Bermuda	100% AEGON USA, LLC	Reinsurance
Transamerica International Re Escritório de Representação no Brasil Ltd	Brazil	95% Transamerica International Re(Bermuda) Ltd.; 5% Transamerica International Holdings, Inc.	Insurance and reinsurance consulting
Transamerica Investment Management, LLC	Delaware	Sole Member - AEGON USA Asset Management Holding, LLC	Investment advisor
Transamerica Investors Securities Corporation	Delaware	100% Transamerica Retirement Solutions Corporation	Broker/Dealer
Transamerica Leasing Holdings Inc.	Delaware	100% Transamerica Finance Corporation	Holding company
Transamerica Life Canada	Canada	100% AEGON Canada ULC	Life insurance company
Transamerica Life Insurance Company	Iowa	676,190 shares Common Stock owned by Transamerica International Holdings, Inc.; 86,590 shares of Preferred Stock owned by Transamerica Corporation; 30,564 shares of Preferred Stock owned by AEGON USA, LLC	Insurance
Transamerica Life (Bermuda) Ltd.	Bermuda	100% Transamerica Life Insurance Company	Long-term life insurer in Bermuda — will primarily write fixed universal life and term insurance
Transamerica Oakmont Corporation	California	100% Transamerica International Holdings, Inc.	General partner retirement properties
Transamerica Oakmont Retirement Associates	California	General Partner is Transamerica Oakmont Corporation. 100 units of limited partnership interests widely held by individual investors.	Senior living apartments
Transamerica Pacific Insurance Company, Ltd.	Hawaii	26,000 shares common stock owned by Commonwealth General Corporation; 1,000 shares of common stock owned by Transamerica International Holdings, Inc.	Life insurance
Transamerica Pyramid Properties LLC	Iowa	100% Monumental Life Insurance Company	Realty limited liability company
Transamerica Realty Investment Properties LLC	Delaware	100% Monumental Life Insurance Company	Realty limited liability company

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
Transamerica Realty Services, LLC	Delaware	AUSA Holding Company - sole Member	Real estate investments
Transamerica Resources, Inc.	Maryland	100% Monumental General Administrators, Inc.	Provides education and information regarding retirement and economic issues.
Transamerica Retirement Advisors, Inc.	Delaware	100% Transamerica Retirement Solutions Corporation	Investment advisor
Transamerica Retirement Insurance Agency, Inc.	Delaware	100% Transamerica Retirement Solutions Corporation	Conduct business as an insurance agency.
Transamerica Retirement Solutions Corporation	Delaware	100% AUSA Holding Company	Retirement plan services.
Transamerica Securities Inc.	Canada	100% World Financial Group Holding Company of Canada, Inc.	Mutual fund dealer
Transamerica Small Business Capital, Inc.	Delaware	100% TCFC Asset Holdings, Inc.	Holding company
Transamerica Stable Value Solutions Inc.	Delaware	100% Commonwealth General Corporation	Principle Business: Provides management services to the stable value division of AEGON insurers who issue synthetic GIC contracts.
Transamerica Travel and Conference Services, LLC	Iowa	100% Money Services, Inc.	Travel and conference services
Transamerica Vendor Financial Services Corporation	Delaware	100% TCFC Asset Holdings, Inc.	Provides commercial leasing
United Financial Services, Inc.	Maryland	100% AEGON USA, LLC	General agency
Universal Benefits, LLC	Iowa	100% AUSA Holding Company	Third party administrator
Western Reserve Life Assurance Co. of Ohio	Ohio	100% AEGON USA, LLC	Insurance
WFG China Holdings, Inc.	Delaware	100% World Financial Group, Inc.	Hold interest in Insurance Agency located in Peoples Republic of China
WFG Insurance Agency of Puerto Rico, Inc.	Puerto Rico	100% World Financial Group Insurance Agency, Inc.	Insurance agency
WFG Properties Holdings, LLC	Georgia	100% World Financial Group, Inc.	Marketing
WFG Reinsurance Limited	Bermuda	51% owned by World Financial Group, Inc; remaining 49% is annually offered to independent contractors associated with WFG Reinsurance Ltd.	Reinsurance
World Financial Group Canada Inc.	Canada	100% World Financial Group Holding Company of Canada Inc.	Marketing
World Financial Group Holding Company of Canada Inc.	Canada	100% Transamerica International Holdings, Inc.	Holding company
World Financial Group, Inc.	Delaware	100% AEGON Asset Management Services, Inc.	Marketing

Name	Jurisdiction of Incorporation	Percent of Voting Securities Owned	Business
World Financial Group Insurance Agency of Canada Inc.	Ontario	50% World Financial Group Holding Co. of Canada Inc.; 50% World Financial Group Subholding Co. of Canada Inc.	Insurance agency
World Financial Group Insurance Agency of Hawaii, Inc.	Hawaii	100% World Financial Group Insurance Agency, Inc.	Insurance agency
World Financial Group Insurance Agency of Massachusetts, Inc.	Massachusetts	100% World Financial Group Insurance Agency, Inc.	Insurance agency
World Financial Group Insurance Agency of Wyoming, Inc.	Wyoming	100% World Financial Group Insurance Agency, Inc.	Insurance agency
World Financial Group Insurance Agency, Inc.	California	100% Western Reserve Life Assurance Co. of Ohio	Insurance agency
World Financial Group Subholding Company of Canada Inc.	Canada	100% World Financial Group Holding Company of Canada, Inc.	Holding company
Yarra Rapids, LLC	Delaware	Members are: Real Estate Alternatives Portfolio 4MR, LLC (49%) and non-AEGON affiliate (51%)	Real estate investments
Zahorik Company, Inc.	California	100% AUSA Holding Company	Inactive
Zero Beta Fund, LLC	Delaware	Members are: Transamerica Life Insurance Company (82.35%); Monumental Life Insurance Company (16.16%); Transamerica Financial Life Insurance Company (1.49%) Manager: AEGON USA Investment Management LLC	Aggregating vehicle formed to hold various fund investments.

Item 27. Number of Contract Owners

As of April 30, 2014, there were 168 Owners of the Contracts.

Item 28. Indemnification

The New York Code (Sections 721 et. seq.) provides for permissive indemnification in certain situations, mandatory indemnification in other situations, and prohibits indemnification in certain situations. The Code also specifies procedures for determining when indemnification payments can be made.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Depositor pursuant to the foregoing provisions, or otherwise, the Depositor has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Depositor of expenses incurred or paid by a director, officer or controlling person in connection with the securities being registered), the Depositor will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Item 29. Principal Underwriters–

(a) Transamerica Capital, Inc. serves as the principal underwriter for:

Transamerica Capital, Inc. serves as the principal underwriter for the Retirement Builder Variable Annuity Account, Separate Account VA B, Separate Account VA Q, 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. ML of New York Variable Annuity Separate Account, ML of New York Variable Annuity Separate Account A, ML of New York Variable Annuity Separate Account B, ML of New York Variable Annuity Separate Account C, ML of New York Variable Annuity Separate Account D, ML of New York Variable Life Separate Account, and ML of New York Variable Life Separate Account II. These accounts are separate accounts of Transamerica Financial Life Insurance Company.

Transamerica Capital, Inc. serves as principal underwriter for Separate Account VA U, Separate Account VA V, Separate Account VA AA, WRL Series Life Account, WRL Series Life Account G, WRL Series Life Corporate Account, WRL Series Annuity Account and WRL Series Annuity Account B. These accounts are separate accounts of Western Reserve Life Assurance Co. of Ohio.

Transamerica Capital, Inc. also serves as principal underwriter for Separate Account VA BB, Separate Account VA CC and Separate Account VL E. This account is a separate account of Monumental Life Insurance Company.

Transamerica Capital, Inc. also serves as principal underwriter for Merrill Lynch Life Variable Annuity Separate Account, Merrill Lynch Life Variable Annuity Separate Account A, Merrill Lynch Life Variable Annuity Separate Account B, Merrill Lynch Life Variable Annuity Separate Account C, Merrill Lynch Life Variable Annuity Separate Account D, Merrill Lynch Variable Life Separate Account, and Merrill Lynch Life Variable Life Separate Account II. These accounts are separate accounts of Transamerica Advisors Life Insurance Company.

Transamerica Capital, Inc. also serves as principal underwriter for Transamerica Series Trust, Transamerica Funds, Transamerica Investors, Inc., Transamerica Partners Funds Group, Transamerica Partners Funds Group II, Transamerica Partners Portfolios, and Transamerica Asset Allocation Variable Funds.

(b) Directors and Officers of Transamerica Capital, Inc.:

Name	Principal Business Address	Position and Offices with Underwriter
Thomas A. Swank	(1)	Director
Michael W. Brandsma	(2)	Director, President and Chief Financial Officer
David W. Hopewell	(1)	Director
David R. Paulsen	(2)	Director, Chief Executive Officer and Chief Sales Officer
Blake S. Bostwick	(2)	Chief Marketing Officer and Chief Operations Officer
Courtney John	(2)	Chief Compliance Officer and Vice President
Amy Angle	(3)	Assistant Vice President
Elizabeth Belanger	(4)	Assistant Vice President
Dennis P. Gallagher	(5)	Assistant Vice President
Christy Rissin	(5)	Assistant Vice President
Brenda L. Smith	(5)	Assistant Vice President
Darin D. Smith	(1)	Assistant Vice President
Lisa Wachendorf	(1)	Assistant Vice President
Arthur D. Woods	(5)	Assistant Vice President
Jeffrey T. McGlaun	(3)	Assistant Treasurer
Carrie N. Powicki	(2)	Secretary
C. Michael van Katwijk	(3)	Treasurer
Wesley J. Hodgson	(2)	Vice President

(1) 4333 Edgewood Road N.E., Cedar Rapids, IA 52499-0001

(2) 4600 S Syracuse St, Suite 1100, Denver, CO 80237-2719

(3) 100 Light Street, Floor B1, Baltimore, MD 21202

(4) 440 Mamaroneck Avenue, Harrison, NY 10528

(5) 570 Carillon Parkway, St. Petersburg, FL 33716

(c) Compensation to Principal Underwriter:

Name of Principal Underwriter	Net Underwriting Discounts and Commissions(1)		Compensation on Redemption		Brokerage Commissions		Compensation
Transamerica Capital, Inc.	$	204,100		0		0		0

⁽¹⁾  Fiscal Year 2013

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 Financial Life Insurance Company at 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499-0001.

Item 31. Management Services.

All management Contracts are discussed in Part A or Part B.

Item 32. Undertakings

(a) Registrant undertakes that it will file a post-effective amendment to this registration statement as frequently as necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as Premiums under the Contract may be accepted.

(b) Registrant undertakes that it will include either (i) a postcard or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information or (ii) a space in the Policy application that an applicant can check to request a Statement of Additional Information.

(c) Registrant undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request to Transamerica at the address or phone number listed in the Prospectus.

(d) Transamerica Financial Life Insurance Company hereby represents that the fees and charges deducted under the policies, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Transamerica Financial Life Insurance Company.

SECTION 403(B) REPRESENTATIONS

Transamerica represents that it is relying on a no-action letter dated November 28, 1988, to the American Council of Life Insurance (Ref. No. IP-6-88), regarding Sections 22(e), 27(c)(1), and 27(d) of the Investment Company Act of 1940, in connection with redeemability restrictions on Section 403(b) Policies, and that paragraphs numbered (1) through (4) of that letter will be complied with.

TEXAS ORP REPRESENTATION

The Registrant intends to offer policies to participants in the Texas Option Retirement Program. In connection with that offering, the Registrant is relying on Rule 6c-7 under the Investment Company Act of 1940 and is complying with, or shall comply with, paragraphs (a) – (d) of that Rule.

SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has caused this Registration Statement to be signed on its behalf, in the City of Cedar Rapids and State of Iowa, on this 1 day of July, 2014.

ML OF NEW YORK VARIABLE ANNUITY

SEPARATE ACCOUNT A

TRANSAMERICA FINANCIAL LIFE

INSURANCE COMPANY

Depositor

Peter G. Kunkel*

Director, President and Chairman of the Board

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	, 2014
William Brown, Jr.*
	Director	, 2014
Steven E. Frushtick*
	Director	, 2014
Peter P. Post*
	Director, Chairman of the Board and President	, 2014
Peter G. Kunkel*
	Director, Senior Vice President, Assistant Secretary and	,2014
Marc Cahn*	Division General Counsel
	Director and Vice President	, 2014
Elizabeth Belanger*
	Director and Vice President	, 2014
John T. Mallett*
	Senior Vice President and Treasurer	, 2014
C. Michiel van Katwijk*
	Controller	, 2014
Eric J. Martin*
/s/ Darin D. Smith Darin D. Smith	Vice President, Assistant Secretary and Managing Assistant General Counsel	July 1, 2014

* By: Darin D. Smith – Attorney-in-Fact pursuant to Powers of Attorney filed previously and herewith.

Registration No.

333-            

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

EXHIBITS

TO

FORM N-4

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

FOR

ML OF NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT A

EXHIBIT INDEX

Exhibit No.	Description of Exhibit	Page No.*
(l)(b)	Resolution of Board of Directors of Transamerica Financial Life Insurance Company Approving Plan of Merger with Transamerica Advisors Life Insurance Company of New York
(l)(c)	Resolution of Board of Directors of Transamerica Advisors Life Insurance Company of New York Approving Plan of Merger with Transamerica Financial Life Insurance Company
(8)(b)(1)	Amendment No. 4 to Participation Agreement (AllianceBernstein)
(8)(g)	Participation Agreement (MFS)
(8)(g)(1)	Amendment to Agreements (MFS Confidential Agreement)
(8)(h)(3)	Amendment No. 6 to Participation Agreement (PIMCO)
(9)	Opinion of Counsel
(10)	Consent of Independent Registered Public Accounting Firm
(13)	Powers of Attorney

^*  Page numbers included only in manually executed original.