FINANCIAL STATEMENTS
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Years Ended December 31, 2023 and 2022
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Financial Statements
Years Ended December 31, 2023 and 2022
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| Financial Statements |
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Report of Independent Registered Public Accounting Firm
To the Board of Directors of Transamerica Life Insurance Company and the Contract Owners of Merrill Lynch Life Variable Annuity Separate Account
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities of each of the subaccounts of Merrill Lynch Life Variable Annuity Separate Account indicated in the table below as of December 31, 2023, and the related statements of operations and changes in net assets for each of the two years in the period ended December 31, 2023, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the subaccounts of Merrill Lynch Life Variable Annuity Separate Account as of December 31, 2023, and the results of each of their operations and the changes in each of their net assets for each of the two years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.
| BlackRock Advantage Large Cap Core V.I. Class I Shares | BlackRock High Yield V.I. Class I Shares | |
| BlackRock Advantage SMID Cap V.I. Class I Shares | BlackRock International V.I. Class I Shares | |
| BlackRock Basic Value V.I. Class I Shares | BlackRock Managed Volatility V.I. Class I Shares | |
| BlackRock Global Allocation V.I. Class I Shares | BlackRock S&P 500 Index V.I. Class I Shares | |
| BlackRock Government Money Market V.I. Class I Shares | BlackRock Total Return V.I. Class I Shares |
Basis for Opinions
These financial statements are the responsibility of the Transamerica Life Insurance Company management. Our responsibility is to express an opinion on the financial statements of each of the subaccounts of Merrill Lynch Life Variable Annuity Separate Account based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the subaccounts of Merrill Lynch Life Variable Annuity Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
1
Our procedures included confirmation of investments owned as of December 31, 2023 by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
April 19, 2024
We have served as the auditor of one or more of the subaccounts of Merrill Lynch Life Variable Annuity Separate Account since 2014.
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Statements of Assets and Liabilities
December 31, 2023
| Subaccount | Number of Shares | Cost | Assets at Market Value |
Due (to)/from General Account |
Net Assets | Units Outstanding | Range of Unit Values | |||||||||||||||||||||||||
| BlackRock Advantage Large Cap Core V.I. Class I Shares |
353,651.288 | $ | 8,488,076 | $ | 7,239,242 | $ | (66) | $ | 7,239,176 | 15,762 | $ | 423.527188 | $ | 503.247529 | ||||||||||||||||||
| BlackRock Advantage SMID Cap V.I. Class I Shares |
78,684.877 | 1,794,706 | 1,666,546 | (78) | 1,666,468 | 5,814 | 268.142524 | 324.275564 | ||||||||||||||||||||||||
| BlackRock Basic Value V.I. Class I Shares |
15,173.532 | 199,547 | 196,346 | - | 196,346 | 3,008 | 61.234406 | 66.380934 | ||||||||||||||||||||||||
| BlackRock Global Allocation V.I. Class I Shares |
204,163.308 | 3,387,424 | 3,329,904 | (1) | 3,329,903 | 83,035 | 38.962476 | 42.237068 | ||||||||||||||||||||||||
| BlackRock Government Money Market V.I. Class I Shares |
406,192.533 | 406,193 | 406,193 | (33) | 406,160 | 15,089 | 26.377364 | 29.860315 | ||||||||||||||||||||||||
| BlackRock High Yield V.I. Class I Shares |
231,448.769 | 1,583,718 | 1,583,110 | 8,401 | 1,591,511 | 8,480 | 164.212898 | 190.742935 | ||||||||||||||||||||||||
| BlackRock International V.I. Class I Shares |
6,950.492 | 79,561 | 70,130 | - | 70,130 | 2,909 | 23.382921 | 25.020588 | ||||||||||||||||||||||||
| BlackRock Managed Volatility V.I. Class I Shares |
53,116.628 | 662,280 | 703,795 | 8 | 703,803 | 16,104 | 41.176367 | 45.779229 | ||||||||||||||||||||||||
| BlackRock S&P 500 Index V.I. Class I Shares |
46,066.453 | 1,149,817 | 1,363,567 | 110 | 1,363,677 | 18,943 | 69.942417 | 75.812894 | ||||||||||||||||||||||||
| BlackRock Total Return V.I. Class I Shares |
65,530.271 | 766,888 | 670,375 | 2,093 | 672,468 | 9,018 | 69.266633 | 79.145018 | ||||||||||||||||||||||||
| See accompanying notes. |
2 |
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Statements of Assets and Liabilities
December 31, 2023
| Subaccount | Net Assets Representing: Accumulation Units |
Net Assets Representing: Contracts in Payout (Annuitization) Period |
Total Net Assets | |||||||||
| BlackRock Advantage Large Cap Core V.I. Class I Shares |
$ | 7,203,622 | $ | 35,554 | $ | 7,239,176 | ||||||
| BlackRock Advantage SMID Cap V.I. Class I Shares |
1,664,340 | 2,128 | 1,666,468 | |||||||||
| BlackRock Basic Value V.I. Class I Shares |
196,346 | - | 196,346 | |||||||||
| BlackRock Global Allocation V.I. Class I Shares |
3,318,804 | 11,099 | 3,329,903 | |||||||||
| BlackRock Government Money Market V.I. Class I Shares |
405,533 | 627 | 406,160 | |||||||||
| BlackRock High Yield V.I. Class I Shares |
1,590,313 | 1,198 | 1,591,511 | |||||||||
| BlackRock International V.I. Class I Shares |
70,130 | - | 70,130 | |||||||||
| BlackRock Managed Volatility V.I. Class I Shares |
703,803 | - | 703,803 | |||||||||
| BlackRock S&P 500 Index V.I. Class I Shares |
1,336,774 | 26,903 | 1,363,677 | |||||||||
| BlackRock Total Return V.I. Class I Shares |
672,468 | - | 672,468 | |||||||||
| See accompanying notes. |
3 |
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2023 and 2022
| BlackRock Advantage Large Cap Core V.I. Class I Shares Subaccount |
BlackRock Advantage SMID Cap V.I. Class I Shares Subaccount |
BlackRock Basic Value V.I. Class I Shares Subaccount |
BlackRock Global Allocation V.I. Class I Shares Subaccount |
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| Net Assets as of December 31, 2021: |
$ | 8,331,787 | $ | 2,120,087 | $ | 491,706 | $ | 4,239,257 | ||||||||
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| Investment Income: |
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| Reinvested Dividends |
66,310 | 14,744 | 3,288 | - | ||||||||||||
| Investment Expense: |
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| Mortality and Expense Risk and Administrative Charges |
80,130 | 20,412 | 4,392 | 41,739 | ||||||||||||
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| Net Investment Income (Loss) |
(13,820 | ) | (5,668 | ) | (1,104 | ) | (41,739) | |||||||||
| Increase (Decrease) in Net Assets from Operations: |
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| Capital Gain Distributions |
107,979 | 12,559 | 25,491 | 44,219 | ||||||||||||
| Realized Gain (Loss) on Investments |
(347,365 | ) | (38,540 | ) | (50,252 | ) | (4,270) | |||||||||
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| Net Realized Capital Gains (Losses) on Investments |
(239,386 | ) | (25,981 | ) | (24,761 | ) | 39,949 | |||||||||
| Net Change in Unrealized Appreciation (Depreciation) |
(1,472,080 | ) | (326,061 | ) | (2,192 | ) | (696,356) | |||||||||
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| Net Gain (Loss) on Investment |
(1,711,466 | ) | (352,042 | ) | (26,953 | ) | (656,407) | |||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
(1,725,286 | ) | (357,710 | ) | (28,057 | ) | (698,146) | |||||||||
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| Increase (Decrease) in Net Assets from Contract Transactions |
(324,838 | ) | (248,938 | ) | (246,456 | ) | (286,637) | |||||||||
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| Total Increase (Decrease) in Net Assets |
(2,050,124 | ) | (606,648 | ) | (274,513 | ) | (984,783) | |||||||||
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| Net Assets as of December 31, 2022: |
$ | 6,281,663 | $ | 1,513,439 | $ | 217,193 | $ | 3,254,474 | ||||||||
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| Investment Income: |
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| Reinvested Dividends |
57,927 | 14,905 | 3,316 | 70,974 | ||||||||||||
| Investment Expense: |
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| Mortality and Expense Risk and Administrative Charges |
76,595 | 18,298 | 2,163 | 38,979 | ||||||||||||
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| Net Investment Income (Loss) |
(18,668 | ) | (3,393 | ) | 1,153 | 31,995 | ||||||||||
| Increase (Decrease) in Net Assets from Operations: |
||||||||||||||||
| Capital Gain Distributions |
- | - | 7,432 | - | ||||||||||||
| Realized Gain (Loss) on Investments |
(444,833 | ) | (41,004 | ) | (4,486 | ) | (25,799) | |||||||||
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| Net Realized Capital Gains (Losses) on Investments |
(444,833 | ) | (41,004 | ) | 2,946 | (25,799) | ||||||||||
| Net Change in Unrealized Appreciation (Depreciation) |
1,895,129 | 298,564 | 23,700 | 352,537 | ||||||||||||
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| Net Gain (Loss) on Investment |
1,450,296 | 257,560 | 26,646 | 326,738 | ||||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
1,431,628 | 254,167 | 27,799 | 358,733 | ||||||||||||
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| Increase (Decrease) in Net Assets from Contract Transactions |
(474,115 | ) | (101,138 | ) | (48,646 | ) | (283,304) | |||||||||
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| Total Increase (Decrease) in Net Assets |
957,513 | 153,029 | (20,847 | ) | 75,429 | |||||||||||
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| Net Assets as of December 31, 2023: |
$ | 7,239,176 | $ | 1,666,468 | $ | 196,346 | $ | 3,329,903 | ||||||||
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| See Accompanying Notes.
(1) See Footnote 1 |
4 |
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2023 and 2022
| BlackRock Government Money Market V.I. Class I Shares Subaccount |
BlackRock High Yield V.I. Class I Shares Subaccount |
BlackRock International V.I. Class I Shares Subaccount |
BlackRock Managed Volatility V.I. Subaccount |
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| Net Assets as of December 31, 2021: |
$ | 1,092,277 | $ | 1,695,906 | $ | 86,343 | $ | 716,087 | ||||||||
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| Investment Income: |
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| Reinvested Dividends |
15,156 | 81,867 | 547 | - | ||||||||||||
| Investment Expense: |
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| Mortality and Expense Risk and Administrative Charges |
12,421 | 15,930 | 773 | 7,880 | ||||||||||||
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| Net Investment Income (Loss) |
2,735 | 65,937 | (226 | ) | (7,880) | |||||||||||
| Increase (Decrease) in Net Assets from Operations: |
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| Capital Gain Distributions |
- | - | 2,189 | - | ||||||||||||
| Realized Gain (Loss) on Investments |
- | (1,821 | ) | (488 | ) | 6,460 | ||||||||||
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| Net Realized Capital Gains (Losses) on Investments |
- | (1,821 | ) | 1,701 | 6,460 | |||||||||||
| Net Change in Unrealized Appreciation (Depreciation) |
- | (254,722 | ) | (23,474 | ) | 35,873 | ||||||||||
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| Net Gain (Loss) on Investment |
- | (256,543 | ) | (21,773 | ) | 42,333 | ||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
2,735 | (190,606 | ) | (21,999 | ) | 34,453 | ||||||||||
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| Increase (Decrease) in Net Assets from Contract Transactions |
(4,341 | ) | (17,855 | ) | (2,162 | ) | (39,576) | |||||||||
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| Total Increase (Decrease) in Net Assets |
(1,606 | ) | (208,461 | ) | (24,161 | ) | (5,123) | |||||||||
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| Net Assets as of December 31, 2022: |
$ | 1,090,671 | $ | 1,487,445 | $ | 62,182 | $ | 710,964 | ||||||||
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| Investment Income: |
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| Reinvested Dividends |
35,964 | 100,024 | 577 | 60,370 | ||||||||||||
| Investment Expense: |
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| Mortality and Expense Risk and Administrative Charges |
9,345 | 15,721 | 772 | 7,981 | ||||||||||||
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| Net Investment Income (Loss) |
26,619 | 84,303 | (195 | ) | 52,389 | |||||||||||
| Increase (Decrease) in Net Assets from Operations: |
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| Capital Gain Distributions |
- | - | - | - | ||||||||||||
| Realized Gain (Loss) on Investments |
- | (6,869 | ) | (559 | ) | 5,592 | ||||||||||
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| Net Realized Capital Gains (Losses) on Investments |
- | (6,869 | ) | (559 | ) | 5,592 | ||||||||||
| Net Change in Unrealized Appreciation (Depreciation) |
- | 97,301 | 11,505 | (43,435) | ||||||||||||
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| Net Gain (Loss) on Investment |
- | 90,432 | 10,946 | (37,843) | ||||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
26,619 | 174,735 | 10,751 | 14,546 | ||||||||||||
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| Increase (Decrease) in Net Assets from Contract Transactions |
(711,130 | ) | (70,669 | ) | (2,803 | ) | (21,707) | |||||||||
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| Total Increase (Decrease) in Net Assets |
(684,511 | ) | 104,066 | 7,948 | (7,161) | |||||||||||
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| Net Assets as of December 31, 2023: |
$ | 406,160 | $ | 1,591,511 | $ | 70,130 | $ | 703,803 | ||||||||
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| See Accompanying Notes.
(1) See Footnote 1 |
5 |
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2023 and 2022
| BlackRock S&P 500 Index V.I. Class I Shares Subaccount |
BlackRock Total Return V.I. Class I Shares Subaccount |
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| Net Assets as of December 31, 2021: |
$ | 1,590,849 | $ | 832,143 | ||||
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| Investment Income: |
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| Reinvested Dividends |
20,319 | 17,103 | ||||||
| Investment Expense: |
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| Mortality and Expense Risk and Administrative Charges |
16,491 | 8,108 | ||||||
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| Net Investment Income (Loss) |
3,828 | 8,995 | ||||||
| Increase (Decrease) in Net Assets from Operations: |
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| Capital Gain Distributions |
62,242 | 131 | ||||||
| Realized Gain (Loss) on Investments |
25,343 | (1,911 | ) | |||||
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| Net Realized Capital Gains (Losses) on Investments |
87,585 | (1,780 | ) | |||||
| Net Change in Unrealized Appreciation (Depreciation) |
(395,054 | ) | (129,054 | ) | ||||
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| Net Gain (Loss) on Investment |
(307,469 | ) | (130,834 | ) | ||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
(303,641 | ) | (121,839 | ) | ||||
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| Increase (Decrease) in Net Assets from Contract Transactions |
(11,059 | ) | (27,097 | ) | ||||
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| Total Increase (Decrease) in Net Assets |
(314,700 | ) | (148,936 | ) | ||||
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| Net Assets as of December 31, 2022: |
$ | 1,276,149 | $ | 683,207 | ||||
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| Investment Income: |
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| Reinvested Dividends |
17,137 | 26,342 | ||||||
| Investment Expense: |
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| Mortality and Expense Risk and Administrative Charges |
15,652 | 7,599 | ||||||
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| Net Investment Income (Loss) |
1,485 | 18,743 | ||||||
| Increase (Decrease) in Net Assets from Operations: |
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| Capital Gain Distributions |
50,771 | - | ||||||
| Realized Gain (Loss) on Investments |
46,925 | (9,017 | ) | |||||
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| Net Realized Capital Gains (Losses) on Investments |
97,696 | (9,017 | ) | |||||
| Net Change in Unrealized Appreciation (Depreciation) |
194,257 | 20,340 | ||||||
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| Net Gain (Loss) on Investment |
291,953 | 11,323 | ||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations |
293,438 | 30,066 | ||||||
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| Increase (Decrease) in Net Assets from Contract Transactions |
(205,910 | ) | (40,805 | ) | ||||
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| Total Increase (Decrease) in Net Assets |
87,528 | (10,739 | ) | |||||
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| Net Assets as of December 31, 2023: |
$ | 1,363,677 | $ | 672,468 | ||||
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| See Accompanying Notes.
(1) See Footnote 1 |
6 |
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Notes to Financial Statements
December 31, 2023
1. Organization
Merrill Lynch Life Variable Annuity Separate Account (the Separate Account) is a segregated investment account of Transamerica Life Insurance Company (TLIC), an indirect wholly owned subsidiary of Aegon N.V., a holding company organized under the laws of the Netherlands.
The Separate Account is registered with the Securities and Exchange Commission as a Unit Investment Trust pursuant to provisions of the Investment Company Act of 1940. TLIC and the Separate Account are regulated by the Securities and Exchange Commission. The assets and liabilities of the Separate Account are clearly identified and distinguished from TLIC’s other assets and liabilities. The Separate Account consists of multiple investment subaccounts. Each subaccount invests exclusively in the corresponding portfolio of a Mutual Fund. Each Mutual Fund is registered as an open-end management investment company under the Investment Company Act of 1940, as amended. Activity in these specified investment subaccounts is available to contract owners of Merrill Lynch Portfolio Plus®.
Subaccount Investment by Mutual Fund:
| Subaccount |
Mutual Fund | |
| BlackRock Variable Series Funds, Inc. |
BlackRock Variable Series Funds, Inc. | |
| BlackRock Advantage Large Cap Core V.I. Class I Shares |
BlackRock Advantage Large Cap Core V.I. Fund Class I Shares | |
| BlackRock Advantage SMID Cap V.I. Class I Shares |
BlackRock Advantage SMID Cap V.I. Fund Class I Shares | |
| BlackRock Basic Value V.I. Class I Shares |
BlackRock Basic Value V.I. Fund Class I Shares | |
| BlackRock Global Allocation V.I. Class I Shares |
BlackRock Global Allocation V.I. Fund Class I Shares | |
| BlackRock Government Money Market V.I. Class I Shares |
BlackRock Government Money Market V.I. Fund Class I Shares | |
| BlackRock High Yield V.I. Class I Shares |
BlackRock High Yield V.I. Fund Class I Shares | |
| BlackRock International V.I. Class I Shares |
BlackRock International V.I. Fund Class I Shares | |
| BlackRock Managed Volatility V.I. Class I Shares |
BlackRock Managed Volatility V.I. Fund Class I Shares | |
| 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 Shares |
BlackRock Total Return V.I. Fund Class I Shares |
7
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Notes to Financial Statements
December 31, 2023
2. Summary of Significant Accounting Policies
The financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable annuity separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.
Investments
Net purchase payments received by the Separate Account are invested in the portfolios of the Mutual Funds as selected by the contract owner. Investments are stated at the closing net asset values per share on December 31, 2023.
Realized capital gains and losses from sales of shares in the Separate Account are determined on the first-in, first-out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividend income is recorded on the ex-dividend date. Unrealized gains or losses from investments in the Mutual Funds are included in the Statements of Operations and Changes in Net Assets.
Dividend Income
Dividends received from the Mutual Fund investments are reinvested to purchase additional mutual fund shares.
Fair Value Measurements and Fair Value Hierarchy
The Accounting Standards Codification™ (ASC) 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the nature of inputs used to measure fair value and enhances disclosure requirements for fair value measurements.
The Separate Account has categorized its financial instruments into a three level hierarchy which is based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.
Financial assets and liabilities recorded at fair value on the Statements of Assets and Liabilities are categorized as follows:
Level 1. Unadjusted quoted prices for identical assets or liabilities in an active market.
Level 2. Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
a) Quoted prices for similar assets or liabilities in active markets
b) Quoted prices for identical or similar assets or liabilities in non-active markets
c) Inputs other than quoted market prices that are observable
d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means.
Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon published closing NAV per share and therefore are considered Level 1.
There were no transfers between Level 1, Level 2 and Level 3 during the year ended December 31, 2023.
8
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Notes to Financial Statements
December 31, 2023
3. Investments
The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2023 were as follows:
| Subaccount | Purchases | Sales | ||||||
| BlackRock Advantage Large Cap Core V.I. Class I Shares |
$ | 76,092 | $ | 568,862 | ||||
| BlackRock Advantage SMID Cap V.I. Class I Shares |
14,982 | 119,503 | ||||||
| BlackRock Basic Value V.I. Class I Shares |
10,835 | 50,803 | ||||||
| BlackRock Global Allocation V.I. Class I Shares |
78,783 | 330,092 | ||||||
| BlackRock Government Money Market V.I. Class I Shares |
35,965 | 720,461 | ||||||
| BlackRock High Yield V.I. Class I Shares |
99,538 | 86,385 | ||||||
| BlackRock International V.I. Class I Shares |
577 | 3,574 | ||||||
| BlackRock Managed Volatility V.I. Class I Shares |
60,371 | 29,689 | ||||||
| BlackRock S&P 500 Index V.I. Class I Shares |
68,269 | 221,945 | ||||||
| BlackRock Total Return V.I. Class I Shares |
26,328 | 48,388 | ||||||
9
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Notes to Financial Statements
4. Change in Units
The change in units outstanding were as follows:
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||||||||||||||||
| Subaccount | Units Purchased | Units Redeemed and Transferred to/from |
Net Increase (Decrease) |
Units Purchased | Units Redeemed and Transferred to/from |
Net Increase (Decrease) |
||||||||||||||||||||||
| BlackRock Advantage Large Cap Core V.I. Class I Shares |
51 | (1,229 | ) | (1,178 | ) | 22 | (811 | ) | (789 | ) | ||||||||||||||||||
| BlackRock Advantage SMID Cap V.I. Class I Shares |
- | (363 | ) | (363 | ) | 443 | (1,461 | ) | (1,018 | ) | ||||||||||||||||||
| BlackRock Basic Value V.I. Class I Shares |
- | (880 | ) | (880 | ) | - | (4,271 | ) | (4,271 | ) | ||||||||||||||||||
| BlackRock Global Allocation V.I. Class I Shares |
201 | (7,364 | ) | (7,163 | ) | 1,732 | (9,053 | ) | (7,321 | ) | ||||||||||||||||||
| BlackRock Government Money Market V.I. Class I Shares |
- | (25,217 | ) | (25,217 | ) | - | (157 | ) | (157 | ) | ||||||||||||||||||
| BlackRock High Yield V.I. Class I Shares |
- | (433 | ) | (433 | ) | 4 | (107 | ) | (103 | ) | ||||||||||||||||||
| BlackRock International V.I. Class I Shares |
- | (124 | ) | (124 | ) | - | (104 | ) | (104 | ) | ||||||||||||||||||
| BlackRock Managed Volatility V.I. Class I Shares |
- | (483 | ) | (483 | ) | - | (918 | ) | (918 | ) | ||||||||||||||||||
| BlackRock S&P 500 Index V.I. Class I Shares |
6 | (3,205 | ) | (3,199 | ) | 1,371 | (1,509 | ) | (138 | ) | ||||||||||||||||||
| BlackRock Total Return V.I. Class I Shares |
- | (540 | ) | (540 | ) | 247 | (603 | ) | (356 | ) | ||||||||||||||||||
10
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Notes to Financial Statements
4. Change in Unit Dollars (continued)
|
Year Ended December 31, 2023 |
Year Ended December 31, 2022 | |||||||||||||||||||||||||||
| Subaccount | Units Purchased in Dollars |
Units Redeemed and Transferred to/from in Dollars |
Dollar Net Increase (Decrease) |
Units Purchased in Dollars |
Units Redeemed and Transferred to/from in Dollars |
Dollar Net Increase (Decrease) |
||||||||||||||||||||||
| BlackRock Advantage Large Cap Core V.I. Class I Shares |
$ | 18,282 | $ | (492,397 | ) | $ | (474,115 | ) | $ | 7,736 | $ | (332,574 | ) | $ | (324,838 | ) | ||||||||||||
| BlackRock Advantage SMID Cap V.I. Class I Shares |
77 | (101,215 | ) | (101,138 | ) | 127,342 | (376,280 | ) | (248,938 | ) | ||||||||||||||||||
| BlackRock Basic Value V.I. Class I Shares |
- | (48,646 | ) | (48,646 | ) | - | (246,456 | ) | (246,456 | ) | ||||||||||||||||||
| BlackRock Global Allocation V.I. Class I Shares |
7,829 | (291,133 | ) | (283,304 | ) | 67,071 | (353,708 | ) | (286,637 | ) | ||||||||||||||||||
| BlackRock Government Money Market V.I. Class I Shares |
- | (711,130 | ) | (711,130 | ) | - | (4,341 | ) | (4,341 | ) | ||||||||||||||||||
| BlackRock High Yield V.I. Class I Shares |
46 | (70,715 | ) | (70,669 | ) | 612 | (18,467 | ) | (17,855 | ) | ||||||||||||||||||
| BlackRock International V.I. Class I Shares |
- | (2,803 | ) | (2,803 | ) | - | (2,162 | ) | (2,162 | ) | ||||||||||||||||||
| BlackRock Managed Volatility V.I. Class I Shares |
- | (21,707 | ) | (21,707 | ) | - | (39,576 | ) | (39,576 | ) | ||||||||||||||||||
| BlackRock S&P 500 Index V.I. Class I Shares |
362 | (206,272 | ) | (205,910 | ) | 79,724 | (90,783 | ) | (11,059 | ) | ||||||||||||||||||
| BlackRock Total Return V.I. Class I Shares |
- | (40,805 | ) | (40,805 | ) | 19,347 | (46,444 | ) | (27,097 | ) | ||||||||||||||||||
11
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Notes to Financial Statements
December 31, 2023
5. Financial Highlights
The Separate Account offers various death benefit options, which have differing fees that are charged against the contract owner’s account balance. These charges are discussed in more detail in the individual’s policy. Differences in the fee structures for these units result in different unit values, expense ratios, and total returns.
| At December 31 | For the Year Ended December 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Subaccount | Units | Unit Fair Value Corresponding to Lowest to Highest Expense Ratio |
Net Assets |
Investment Income Ratio* |
Expense Ratio** Lowest to Highest |
Total Return*** Corresponding to Lowest to Highest Expense Ratio |
||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| BlackRock Advantage Large Cap Core V.I. Class I Shares |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/2023 | 15,762 | $ | 503.25 | to | $ | 423.53 | $ | 7,239,176 | 0.87 | % | 1.00 | % | to | 1.30 | % | 23.99 | % | to | 23.62 | % | ||||||||||||||||||||||||||||||||
| 12/31/2022 | 16,940 | 405.89 | to | 342.62 | 6,281,663 | 0.95 | 1.00 | to | 1.30 | (20.78) | to | (21.02) | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2021 | 17,729 | 512.38 | to | 433.81 | 8,331,787 | 1.51 | 1.00 | to | 1.30 | 27.17 | to | 26.79 | ||||||||||||||||||||||||||||||||||||||||
|
|
12/31/2020 | 18,033 | 402.93 | to | 342.16 | 6,678,357 | 1.10 | 1.00 | to | 1.30 | 18.60 | to | 18.25 | |||||||||||||||||||||||||||||||||||||||
| 12/31/2019 | 21,075 | 339.72 | to | 289.35 | 6,590,668 | 1.39 | 1.00 | to | 1.30 | 27.64 | to | 27.26 | ||||||||||||||||||||||||||||||||||||||||
| BlackRock Advantage SMID Cap V.I. Class I Shares |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/2023 | 5,814 | 324.28 | to | 268.14 | 1,666,468 | 0.96 | 1.00 | to | 1.30 | 17.70 | to | 17.35 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2022 | 6,177 | 275.50 | to | 228.49 | 1,513,439 | 0.86 | 1.00 | to | 1.30 | (17.31) | to | (17.55) | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2021 | 7,195 | 333.15 | to | 277.14 | 2,120,087 | 0.88 | 1.00 | to | 1.30 | 12.51 | to | 12.17 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2020 | 7,244 | 296.12 | to | 247.07 | 1,902,101 | 1.09 | 1.00 | to | 1.30 | 18.77 | to | 18.41 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2019 | 8,411 | 249.32 | to | 208.65 | 1,858,054 | 1.63 | 1.00 | to | 1.30 | 27.70 | to | 27.31 | ||||||||||||||||||||||||||||||||||||||||
| BlackRock Basic Value V.I. Class I Shares |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/2023 | 3,008 | 66.38 | to | 61.23 | 196,346 | 1.66 | 1.00 | to | 1.30 | 15.45 | to | 15.11 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2022 | 3,888 | 57.50 | to | 53.20 | 217,193 | 0.79 | 1.00 | to | 1.30 | (5.86) | to | (6.15) | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2021 | 8,159 | 61.08 | to | 56.68 | 491,706 | 1.27 | 1.00 | to | 1.30 | 20.47 | to | 20.10 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2020 | 8,685 | 50.70 | to | 47.19 | 433,603 | 2.16 | 1.00 | to | 1.30 | 2.40 | to | 2.09 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2019 | 11,968 | 49.51 | to | 46.23 | 576,457 | 2.43 | 1.00 | to | 1.30 | 22.68 | to | 22.31 | ||||||||||||||||||||||||||||||||||||||||
| BlackRock Global Allocation V.I. Class I Shares |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/2023 | 83,035 | 42.24 | to | 38.96 | 3,329,903 | 2.14 | 1.00 | to | 1.30 | 11.71 | to | 11.38 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2022 | 90,198 | 37.81 | to | 34.98 | 3,254,474 | - | 1.00 | to | 1.30 | (16.69) | to | (16.94) | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2021 | 97,519 | 45.39 | to | 42.12 | 4,239,257 | 0.92 | 1.00 | to | 1.30 | 5.61 | to | 5.30 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2020 | 100,230 | 42.98 | to | 40.00 | 4,131,451 | 1.27 | 1.00 | to | 1.30 | 19.80 | to | 19.45 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2019 | 115,476 | 35.87 | to | 33.49 | 3,969,643 | 1.27 | 1.00 | to | 1.30 | 16.82 | to | 16.47 | ||||||||||||||||||||||||||||||||||||||||
| BlackRock Government Money Market V.I. Class I Shares |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/2023 | 15,089 | 29.86 | to | 26.38 | 406,160 | 4.65 | 1.00 | to | 1.30 | 3.81 | to | 3.50 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2022 | 40,306 | 28.76 | to | 25.48 | 1,090,671 | 1.40 | 1.00 | to | 1.30 | 0.40 | to | 0.10 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2021 | 40,463 | 28.65 | to | 25.46 | 1,092,277 | - | 1.00 | to | 1.30 | (0.99) | to | (1.29) | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2020 | 40,662 | 28.94 | to | 25.79 | 1,110,007 | 0.27 | 1.00 | to | 1.30 | (0.66) | to | (0.96) | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2019 | 24,736 | 29.13 | to | 26.04 | 705,207 | 1.98 | 1.00 | to | 1.30 | 0.96 | to | 0.66 | ||||||||||||||||||||||||||||||||||||||||
| BlackRock High Yield V.I. Class I Shares |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/2023 | 8,480 | 190.74 | to | 164.21 | 1,591,511 | 6.56 | 1.00 | to | 1.30 | 12.07 | to | 11.73 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2022 | 8,913 | 170.20 | to | 146.97 | 1,487,445 | 5.32 | 1.00 | to | 1.30 | (11.23) | to | (11.50) | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2021 | 9,016 | 191.74 | to | 166.06 | 1,695,906 | 4.51 | 1.00 | to | 1.30 | 4.28 | to | 3.96 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2020 | 9,236 | 183.87 | to | 159.73 | 1,662,712 | 5.20 | 1.00 | to | 1.30 | 6.22 | to | 5.91 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2019 | 9,378 | 173.10 | to | 150.82 | 1,588,250 | 5.40 | 1.00 | to | 1.30 | 14.14 | to | 13.80 | ||||||||||||||||||||||||||||||||||||||||
| BlackRock International V.I. Class I Shares |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/2023 | 2,909 | 25.02 | to | 23.38 | 70,130 | 0.86 | 1.00 | to | 1.30 | 17.84 | to | 17.49 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2022 | 3,033 | 21.23 | to | 19.90 | 62,182 | 0.82 | 1.00 | to | 1.30 | (25.37) | to | (25.59) | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2021 | 3,137 | 28.45 | to | 26.75 | 86,343 | 0.68 | 1.00 | to | 1.30 | 7.59 | to | 7.27 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2020 | 3,238 | 26.44 | to | 24.93 | 82,971 | 0.44 | 1.00 | to | 1.30 | 20.11 | to | 19.76 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2019 | 4,425 | 22.01 | to | 20.82 | 93,976 | 1.22 | 1.00 | to | 1.30 | 30.81 | to | 30.42 | ||||||||||||||||||||||||||||||||||||||||
12
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Notes to Financial Statements
December 31, 2023
5. Financial Highlights (continued)
| At December 31 | For the Year Ended December 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Subaccount | Units | Unit Fair Value Corresponding to Lowest to Highest Expense Ratio |
Net Assets |
Investment Income Ratio* |
Expense Ratio** Lowest to Highest |
Total Return*** Corresponding to Lowest to Highest Expense Ratio |
||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||
| BlackRock Managed Volatility V.I. Class I Shares |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
12/31/2023 | 16,104 | $ | 45.78 | to | $ | 41.18 | $ | 703,803 | 8.50 | % | 1.00 | % | to | 1.30 | % | 2.17 | % | to | 1.87 | % | |||||||||||||||||||||||||||||||
| 12/31/2022 | 16,587 | 44.81 | to | 40.42 | 710,964 | - | 1.00 | to | 1.30 | 5.15 | to | 4.84 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2021 | 17,505 | 42.61 | to | 38.56 | 716,087 | 0.67 | 1.00 | to | 1.30 | (0.32 | ) | to | (0.62 | ) | ||||||||||||||||||||||||||||||||||||||
| 12/31/2020 | 17,758 | 42.75 | to | 38.80 | 730,006 | 3.89 | 1.00 | to | 1.30 | 2.54 | to | 2.23 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2019 | 18,184 | 41.69 | to | 37.95 | 730,160 | 3.38 | 1.00 | to | 1.30 | 1.02 | to | 0.71 | ||||||||||||||||||||||||||||||||||||||||
| BlackRock S&P 500 Index V.I. Class I Shares |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/2023 | 18,943 | 75.81 | to | 69.94 | 1,363,677 | 1.30 | 1.00 | to | 1.30 | 24.97 | to | 24.60 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2022 | 22,142 | 60.67 | to | 56.14 | 1,276,149 | 1.47 | 1.00 | to | 1.30 | (19.04 | ) | to | (19.28 | ) | ||||||||||||||||||||||||||||||||||||||
| 12/31/2021 | 22,280 | 74.93 | to | 69.55 | 1,590,849 | 1.20 | 1.00 | to | 1.30 | 27.26 | to | 26.88 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2020 | 26,984 | 58.88 | to | 54.82 | 1,511,689 | 1.83 | 1.00 | to | 1.30 | 17.06 | to | 16.71 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2019 | 27,855 | 50.30 | to | 46.97 | 1,337,628 | 2.29 | 1.00 | to | 1.30 | 30.04 | to | 29.65 | ||||||||||||||||||||||||||||||||||||||||
| BlackRock Total Return V.I. Class I Shares |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
| 12/31/2023 | 9,018 | 79.15 | to | 69.27 | 672,468 | 3.89 | 1.00 | to | 1.30 | 4.77 | to | 4.46 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2022 | 9,558 | 75.54 | to | 66.31 | 683,207 | 2.37 | 1.00 | to | 1.30 | (14.91 | ) | to | (15.16 | ) | ||||||||||||||||||||||||||||||||||||||
| 12/31/2021 | 9,914 | 88.77 | to | 78.16 | 832,143 | 1.68 | 1.00 | to | 1.30 | (2.41 | ) | to | (2.71 | ) | ||||||||||||||||||||||||||||||||||||||
| 12/31/2020 | 10,279 | 90.97 | to | 80.33 | 883,620 | 2.18 | 1.00 | to | 1.30 | 7.81 | to | 7.48 | ||||||||||||||||||||||||||||||||||||||||
| 12/31/2019 | 11,920 | 84.38 | to | 74.74 | 953,173 | 2.94 | 1.00 | to | 1.30 | 8.40 | to | 8.08 | ||||||||||||||||||||||||||||||||||||||||
| (1) | See Footnote 1 |
| * | These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the Mutual Fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the Mutual Fund in which the subaccounts invest. |
| ** | These amounts represent the annualized contract expenses of the subaccount, consisting primarily of mortality and expense charges, for each period indicated. These ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the Mutual Fund have been excluded. |
| *** | These amounts represent the total return for the periods indicated, including changes in the value of the Mutual Fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. Total returns reflect a full twelve month period and total returns for subaccounts opened during the year have not been disclosed as they may not be indicative of a full year return. Expense ratios not in effect for the full twelve months are not reflected in the total return as they may not be indicative of a full year return. |
13
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Notes to Financial Statements
December 31, 2023
6. Administrative and Mortality and Expense Risk Charges
TLIC deducts an annual charge during the accumulation phase, not to exceed $30, proportionately from the subaccounts’ unit values. An annual charge ranging from 1.00% to 1.30% is deducted (based on the death benefit selected) from the unit values of the subaccounts of the Separate Account for TLIC’s assumption of certain mortality and expense risks incurred in connection with the contract. The charge is assessed daily based on the net asset value of the Mutual Fund. Charges for administrative and mortality and expense risk are an expense of the subaccount. Charges reflected above are those currently assessed and may be subject to change. Contract owners should see their actual policy and any related attachments to determine their specific charges.
7. Income Tax
Operations of the Separate Account form a part of TLIC, which is taxed as a life insurance company under Subchapter L of the Internal Revenue Code of 1986, as amended (the Code). The operations of the Separate Account are accounted for separately from other operations of TLIC for purposes of federal income taxation. The Separate Account is not separately taxable as a regulated investment company under Subchapter M of the Code and is not otherwise taxable as an entity separate from TLIC. Under existing federal income tax laws, the income of the Separate Account is not taxable to TLIC, as long as earnings are credited under the variable annuity contracts.
14
Transamerica Life Insurance Company
Merrill Lynch Life Variable Annuity Separate Account
Notes to Financial Statements
December 31, 2023
8. Subsequent Events
The Separate Account has evaluated the financial statements for subsequent events through the date which the financial statements were issued. During this period, there were no subsequent events requiring recognition in the financial statements.
9. Related Parties
Transamerica Capital, Inc. (TCI), a wholesaling broker-dealer, is an affiliated entity of TLIC and an indirect wholly owned subsidiary of Aegon N.V. TCI distributes TLIC’s products through broker-dealers and other financial intermediaries.
No charges other than those disclosed in Footnote 6 are deducted for the service rendered by related parties.
Contract owners may transfer funds between available subaccount options within the Separate Account. These transfers are performed at unit value at the time of the transfer.
15