Table of Contents

FINANCIAL STATEMENTS

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

Years Ended December 31, 2023 and 2022

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

Financial Statements

Years Ended December 31, 2023 and 2022

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

      3  

Notes to Financial Statements

      7  

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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 C

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 C 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 C 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 Government Money Market V.I. Class I Shares    TA Janus Mid-Cap Growth Service Class
TA Aegon Bond Service Class    TA JPMorgan Enhanced Index Service Class
TA Aegon Sustainable Equity Income Service Class    TA JPMorgan Mid Cap Value Service Class
TA Aegon U.S. Government Securities Service Class    TA Small/Mid Cap Value Service Class
TA BlackRock iShares Edge 40 Service Class    TA T. Rowe Price Small Cap Service Class
TA BlackRock Tactical Allocation Service Class    TA TS&W International Equity Service Class
TA International Focus Service Class    TA WMC US Growth Service Class

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 C 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 C 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

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Our procedures included confirmation of investments owned as of December 31, 2023 by correspondence with the custodian, the transfer agent, or the investee mutual fund. 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 C since 2014.

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

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 Government Money Market V.I. Class I Shares

     251,390.290     $ 251,390     $ 251,390     $ (30)     $ 251,360       28,375     $ 8.858426     $ 8.858426  
               

TA Aegon Bond Service Class

     145,291.605       1,640,034       1,393,346       -       1,393,346       128,576       10.836750       10.836750  
               

TA Aegon Sustainable Equity Income Service Class

     43,201.367       726,447       791,017       (1)       791,016       35,250       22.440173       22.440173  
               

TA Aegon U.S. Government Securities Service Class

     57,308.158       638,899       542,708       2       542,710       56,027       9.686555       9.686555  
               

TA BlackRock iShares Edge 40 Service Class

     10,474.517       97,309       89,767       -       89,767       5,971       15.032654       15.032654  
               

TA BlackRock Tactical Allocation Service Class

     36,447.666       556,011       489,857       (1)       489,856       25,951       18.875973       18.875973  
               

TA International Focus Service Class

     56,869.279       486,132       481,114       -       481,114       26,522       18.139845       18.139845  
               

TA Janus Mid-Cap Growth Service Class

     4,235.345       137,908       117,616       20       117,636       3,396       34.634763       34.634763  
               

TA JPMorgan Enhanced Index Service Class

     22,636.087       484,731       537,833       -       537,833       12,045       44.651287       44.651287  
               

TA JPMorgan Mid Cap Value Service Class

     5,366.745       83,969       75,510       -       75,510       2,154       35.061789       35.061789  
               

TA Small/Mid Cap Value Service Class

     16,356.227       289,033       296,866       1       296,867       8,461       35.086121       35.086121  
               

TA T. Rowe Price Small Cap Service Class

     18,352.223       218,680       179,852       33       179,885       3,993       45.054709       45.054709  
               

TA TS&W International Equity Service Class

     6,958.641       90,721       99,578       2       99,580       6,367       15.639446       15.639446  
               

TA WMC US Growth Service Class

     25,306.928       722,369       860,436       -       860,436       17,306       49.719965       49.719965  

 

See accompanying notes.

    2

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

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

    

TA Aegon Bond Service Class

Subaccount

    

TA Aegon Sustainable Equity

Income Service Class

Subaccount

    

TA Aegon U.S. Government

Securities Service Class

Subaccount

  

Net Assets as of December 31, 2021:

    $ 344,039     $ 2,122,955     $ 1,369,088     $ 693,006    
 

 

 

  

Investment Income:

        

Reinvested Dividends

     4,488       39,845       18,825       4,623    

Investment Expense:

        

Mortality and Expense Risk and Administrative Charges

     6,157       31,977       19,827       10,788    
 

 

 

  

Net Investment Income (Loss)

     (1,669 )      7,868       (1,002 )      (6,165)   

Increase (Decrease) in Net Assets from Operations:

        

Capital Gain Distributions

     -       -       35,558       -   

Realized Gain (Loss) on Investments

     -       (31,680 )      (43,422 )      (8,901)   
 

 

 

  

Net Realized Capital Gains (Losses) on Investments

     -       (31,680 )      (7,864 )      (8,901)   

Net Change in Unrealized Appreciation (Depreciation)

     -       (306,961 )      (166,007 )      (82,950)   
 

 

 

  

Net Gain (Loss) on Investment

     -       (338,641 )      (173,871 )      (91,851)   

Net Increase (Decrease) in Net Assets Resulting from Operations

     (1,669 )      (330,773 )      (174,873 )      (98,016)   
 

 

 

  

Increase (Decrease) in Net Assets from Contract Transactions

     (20,213 )      (254,689 )      (264,516 )      (76,626)   
 

 

 

  

Total Increase (Decrease) in Net Assets

     (21,882 )      (585,462 )      (439,389 )      (174,642)   
 

 

 

  

Net Assets as of December 31, 2022:

    $ 322,157     $ 1,537,493     $ 929,699     $ 518,364    
 

 

 

  

Investment Income:

        

Reinvested Dividends

     13,279       9,022       14,796       7,531    

Investment Expense:

        

Mortality and Expense Risk and Administrative Charges

     5,193       26,867       15,027       9,475    
 

 

 

  

Net Investment Income (Loss)

     8,086       (17,845 )      (231 )      (1,944)   

Increase (Decrease) in Net Assets from Operations:

        

Capital Gain Distributions

     -       -       -       -   

Realized Gain (Loss) on Investments

     -       (70,268 )      (57,878 )      (3,959)   
 

 

 

  

Net Realized Capital Gains (Losses) on Investments

     -       (70,268 )      (57,878 )      (3,959)   

Net Change in Unrealized Appreciation (Depreciation)

     -       142,925       84,624       15,316    
 

 

 

  

Net Gain (Loss) on Investment

     -       72,657       26,746       11,357    

Net Increase (Decrease) in Net Assets Resulting from Operations

     8,086       54,812       26,515       9,413    
 

 

 

  

Increase (Decrease) in Net Assets from Contract Transactions

     (78,883 )      (198,959 )      (165,198 )      14,933    
 

 

 

  

Total Increase (Decrease) in Net Assets

     (70,797 )      (144,147 )      (138,683 )      24,346    
 

 

 

  

Net Assets as of December 31, 2023:

    $ 251,360     $ 1,393,346     $ 791,016     $ 542,710    
 

 

 

  

 

See Accompanying Notes.

 

(1) See Footnote 1

    3

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2023 and 2022

 

   

TA BlackRock iShares Edge 40

Service Class

Subaccount

    

TA BlackRock Tactical Allocation

Service Class

Subaccount

    

TA International Focus Service Class

Subaccount

    

TA Janus Mid-Cap Growth Service

Class

Subaccount

  

Net Assets as of December 31, 2021:

    $ 186,867     $ 1,051,274     $ 802,075     $ 279,707    
 

 

 

  

Investment Income:

        

Reinvested Dividends

     2,233       19,259       16,380       -    

Investment Expense:

        

Mortality and Expense Risk and Administrative Charges

     2,730       13,266       11,386       4,174    
 

 

 

  

Net Investment Income (Loss)

     (497 )      5,993       4,994       (4,174)   

Increase (Decrease) in Net Assets from Operations:

        

Capital Gain Distributions

     5,832       44,480       31,934       34,245    

Realized Gain (Loss) on Investments

     (4,148 )      (7,883 )      11,125       13,095    
 

 

 

  

Net Realized Capital Gains (Losses) on Investments

     1,684       36,597       43,059       47,340    

Net Change in Unrealized Appreciation (Depreciation)

     (29,723 )      (205,950 )      (215,257 )      (92,270)   
 

 

 

  

Net Gain (Loss) on Investment

     (28,039 )      (169,353 )      (172,198 )      (44,930)   

Net Increase (Decrease) in Net Assets Resulting from Operations

     (28,536 )      (163,360 )      (167,204 )      (49,104)   
 

 

 

  

Increase (Decrease) in Net Assets from Contract Transactions

     (29,090 )      (400,002 )      (89,872 )      (36,438)   
 

 

 

  

Total Increase (Decrease) in Net Assets

     (57,626 )      (563,362 )      (257,076 )      (85,542)   
 

 

 

  

Net Assets as of December 31, 2022:

    $ 129,241     $ 487,912     $ 544,999     $ 194,165    
 

 

 

  

Investment Income:

        

Reinvested Dividends

     1,760       11,483       8,947       -    

Investment Expense:

        

Mortality and Expense Risk and Administrative Charges

     1,818       8,982       9,667       3,271    
 

 

 

  

Net Investment Income (Loss)

     (58 )      2,501       (720 )      (3,271)   

Increase (Decrease) in Net Assets from Operations:

        

Capital Gain Distributions

     1,374       17,034       -       34,627    

Realized Gain (Loss) on Investments

     (9,825 )      (14,661 )      2,490       (29,176)   
 

 

 

  

Net Realized Capital Gains (Losses) on Investments

     (8,451 )      2,373       2,490       5,451    

Net Change in Unrealized Appreciation (Depreciation)

     15,940       54,258       45,866       11,828    
 

 

 

  

Net Gain (Loss) on Investment

     7,489       56,631       48,356       17,279    

Net Increase (Decrease) in Net Assets Resulting from Operations

     7,431       59,132       47,636       14,008    
 

 

 

  

Increase (Decrease) in Net Assets from Contract Transactions

     (46,905 )      (57,188 )      (111,521 )      (90,537)   
 

 

 

  

Total Increase (Decrease) in Net Assets

     (39,474 )      1,944       (63,885 )      (76,529)   
 

 

 

  

Net Assets as of December 31, 2023:

    $ 89,767     $ 489,856     $ 481,114     $ 117,636    
 

 

 

  

 

See Accompanying Notes.

 

(1) See Footnote 1

    4

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2023 and 2022

 

   

TA JPMorgan Enhanced Index

Service Class

Subaccount

    

TA JPMorgan Mid Cap Value Service

Class

Subaccount

    

TA Small/Mid Cap Value Service

Class

Subaccount

    

TA T. Rowe Price Small Cap Service

Class

Subaccount

  

Net Assets as of December 31, 2021:

    $ 624,428     $ 152,225     $ 445,750     $ 262,227    
 

 

 

  

Investment Income:

        

Reinvested Dividends

     2,179       544       1,242       -   

Investment Expense:

        

Mortality and Expense Risk and Administrative Charges

     9,901       2,176       7,232       3,768    
 

 

 

  

Net Investment Income (Loss)

     (7,722 )      (1,632 )      (5,990 )      (3,768)   

Increase (Decrease) in Net Assets from Operations:

        

Capital Gain Distributions

     64,767       18,329       58,574       72,220    

Realized Gain (Loss) on Investments

     1,042       9,719       8,540       (1,880)   
 

 

 

  

Net Realized Capital Gains (Losses) on Investments

     65,809       28,048       67,114       70,340    

Net Change in Unrealized Appreciation (Depreciation)

     (182,364 )      (38,862 )      (103,777 )      (127,795)   
 

 

 

  

Net Gain (Loss) on Investment

     (116,555 )      (10,814 )      (36,663 )      (57,455)   

Net Increase (Decrease) in Net Assets Resulting from Operations

     (124,277 )      (12,446 )      (42,653 )      (61,223)   
 

 

 

  

Increase (Decrease) in Net Assets from Contract Transactions

     1,890       (52,363 )      (58,287 )      (24,244)   
 

 

 

  

Total Increase (Decrease) in Net Assets

     (122,387 )      (64,809 )      (100,940 )      (85,467)   
 

 

 

  

Net Assets as of December 31, 2022:

    $ 502,041     $ 87,416     $ 344,810     $ 176,760    
 

 

 

  

Investment Income:

        

Reinvested Dividends

     2,910       888       2,873       -   

Investment Expense:

        

Mortality and Expense Risk and Administrative Charges

     9,452       1,384       6,181       3,216    
 

 

 

  

Net Investment Income (Loss)

     (6,542 )      (496 )      (3,308 )      (3,216)   

Increase (Decrease) in Net Assets from Operations:

        

Capital Gain Distributions

     23,432       6,690       35,131       7,760    

Realized Gain (Loss) on Investments

     4,603       1,231       (19,588 )      (20,435)   
 

 

 

  

Net Realized Capital Gains (Losses) on Investments

     28,035       7,921       15,543       (12,675)   

Net Change in Unrealized Appreciation (Depreciation)

     94,082       (1,940 )      11,615       46,263    
 

 

 

  

Net Gain (Loss) on Investment

     122,117       5,981       27,158       33,588    

Net Increase (Decrease) in Net Assets Resulting from Operations

     115,575       5,485       23,850       30,372    
 

 

 

  

Increase (Decrease) in Net Assets from Contract Transactions

     (79,783 )      (17,391 )      (71,793 )      (27,247)   
 

 

 

  

Total Increase (Decrease) in Net Assets

     35,792       (11,906 )      (47,943 )      3,125    
 

 

 

  

Net Assets as of December 31, 2023:

    $ 537,833     $ 75,510     $ 296,867     $ 179,885    
 

 

 

  

 

See Accompanying Notes.

 

(1) See Footnote 1

    5

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2023 and 2022

 

   

TA TS&W International Equity

Service Class

Subaccount

    

TA WMC US Growth Service Class

Subaccount

  

Net Assets as of December 31, 2021:

    $ 245,987     $ 458,194  
 

 

 

  

Investment Income:

    

Reinvested Dividends

     4,994       -   

Investment Expense:

    

Mortality and Expense Risk and Administrative Charges

     3,520       6,459    
 

 

 

  

Net Investment Income (Loss)

     1,474       (6,459)   

Increase (Decrease) in Net Assets from Operations:

    

Capital Gain Distributions

     6,460       62,872    

Realized Gain (Loss) on Investments

     1,547       2,367    
 

 

 

  

Net Realized Capital Gains (Losses) on Investments

     8,007       65,239    

Net Change in Unrealized Appreciation (Depreciation)

     (48,662 )      (205,532)   
 

 

 

  

Net Gain (Loss) on Investment

     (40,655 )      (140,293)   

Net Increase (Decrease) in Net Assets Resulting from Operations

     (39,181 )      (146,752)   
 

 

 

  

Increase (Decrease) in Net Assets from Contract Transactions

     (54,901 )      5,014    
 

 

 

  

Total Increase (Decrease) in Net Assets

     (94,082 )      (141,738)   
 

 

 

  

Net Assets as of December 31, 2022:

    $ 151,905     $ 316,456    
 

 

 

  

Investment Income:

    

Reinvested Dividends

     1,098       -   

Investment Expense:

    

Mortality and Expense Risk and Administrative Charges

     2,440       13,739    
 

 

 

  

Net Investment Income (Loss)

     (1,342 )      (13,739)   

Increase (Decrease) in Net Assets from Operations:

    

Capital Gain Distributions

     -       27,301    

Realized Gain (Loss) on Investments

     (4,139 )      (79,889)   
 

 

 

  

Net Realized Capital Gains (Losses) on Investments

     (4,139 )      (52,588)   

Net Change in Unrealized Appreciation (Depreciation)

     18,529       287,610    
 

 

 

  

Net Gain (Loss) on Investment

     14,390       235,022    

Net Increase (Decrease) in Net Assets Resulting from Operations

     13,048       221,283    
 

 

 

  

Increase (Decrease) in Net Assets from Contract Transactions

     (65,373 )      322,697    
 

 

 

  

Total Increase (Decrease) in Net Assets

     (52,325 )      543,980    
 

 

 

  

Net Assets as of December 31, 2023:

    $ 99,580     $ 860,436    
 

 

 

  

 

See Accompanying Notes.

 

(1) See Footnote 1

    6

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

Notes to Financial Statements

December 31, 2023

 

1. Organization

Merrill Lynch Life Variable Annuity Separate Account C (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 Consults AnnuitySM.

 

Subaccount Investment by Mutual Fund:

Subaccount

   

Mutual Fund

BlackRock Variable Series Funds, Inc.

   

BlackRock Variable Series Funds, Inc.

BlackRock Government Money Market V.I. Class I Shares

   

BlackRock Government Money Market V.I. Fund Class I Shares

Transamerica Series Trust

   

Transamerica Series Trust

TA Aegon Bond Service Class

   

Transamerica Aegon Bond VP Service Class

TA Aegon Sustainable Equity Income Service Class

   

Transamerica Aegon Sustainable Equity Income VP Service Class

TA Aegon U.S. Government Securities Service Class

   

Transamerica Aegon U.S. Government Securities VP Service Class

TA BlackRock iShares Edge 40 Service Class

   

Transamerica BlackRock iShares Edge 40 VP Service Class

TA BlackRock Tactical Allocation Service Class

   

Transamerica BlackRock Tactical Allocation VP Service Class

TA International Focus Service Class

   

Transamerica International Focus VP Service Class

TA Janus Mid-Cap Growth Service Class

   

Transamerica Janus Mid-Cap Growth VP Service Class

TA JPMorgan Enhanced Index Service Class

   

Transamerica JPMorgan Enhanced Index VP Service Class

TA JPMorgan Mid Cap Value Service Class

   

Transamerica JPMorgan Mid Cap Value VP Service Class

TA Small/Mid Cap Value Service Class

   

Transamerica Small/Mid Cap Value VP Service Class

TA T. Rowe Price Small Cap Service Class

   

Transamerica T. Rowe Price Small Cap VP Service Class

TA TS&W International Equity Service Class

   

Transamerica TS&W International Equity VP Service Class

TA WMC US Growth Service Class

   

Transamerica WMC US Growth VP Service Class

During the current year the following subaccounts were removed as available investment options to contract owners and subsequently replaced and reinvested:

Reinvested Subaccount

   

Removed Subaccount

TA WMC US Growth Service Class

   

TA Morgan Stanley Capital Growth Service Class

The transfers from the removed and liquidated subaccounts to the reinvested subaccounts for the period ended December 31, 2023 are reflected in the Statements of Changes in Net Assets within Increase (Decrease) in Net Assets from Contract Transactions and purchases and sales in Footnote 3.

 

7

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

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

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

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 Government Money Market V.I. Class I Shares

    $ 13,279     $ 84,066  
   

TA Aegon Bond Service Class

            80,581             297,383  
   

TA Aegon Sustainable Equity Income Service Class

      46,324       211,753  
   

TA Aegon U.S. Government Securities Service Class

      38,134       25,146  
   

TA BlackRock iShares Edge 40 Service Class

      5,878       51,467  
   

TA BlackRock Tactical Allocation Service Class

      31,283       68,937  
   

TA International Focus Service Class

      19,098       131,339  
   

TA Janus Mid-Cap Growth Service Class

      35,402       94,585  
   

TA JPMorgan Enhanced Index Service Class

      26,342       89,236  
   

TA JPMorgan Mid Cap Value Service Class

      9,177       20,373  
   

TA Small/Mid Cap Value Service Class

      47,646       87,617  
   

TA T. Rowe Price Small Cap Service Class

      9,855       32,563  
   

TA TS&W International Equity Service Class

      1,878       68,593  
   

TA WMC US Growth Service Class

      631,043       294,785  

 

9

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

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 Government Money Market V.I. Class I Shares

     3       (9,063 )      (9,060 )        3,601       (5,965 )      (2,364 ) 
         

TA Aegon Bond Service Class

     6,707       (26,026 )      (19,319 )        61       (22,404 )      (22,343 ) 
         

TA Aegon Sustainable Equity Income Service Class

     1,451       (9,316 )      (7,865 )        83       (11,916 )      (11,833 ) 
         

TA Aegon U.S. Government Securities Service Class

     3,187       (1,632 )      1,555         34       (7,548 )      (7,514 ) 
         

TA BlackRock iShares Edge 40 Service Class

     190       (3,425 )      (3,235 )        54       (2,028 )      (1,974 ) 
         

TA BlackRock Tactical Allocation Service Class

     157       (3,359 )      (3,202 )              11       (22,526 )      (22,515 ) 
         

TA International Focus Service Class

     569       (7,161 )      (6,592 )        1,223       (6,241 )      (5,018 ) 
         

TA Janus Mid-Cap Growth Service Class

     23       (3,055 )      (3,032 )        1       (1,124 )      (1,123 ) 
         

TA JPMorgan Enhanced Index Service Class

     -       (2,017 )      (2,017 )        227       (150 )      77  
         

TA JPMorgan Mid Cap Value Service Class

     50       (602 )      (552 )        -       (1,531 )      (1,531 ) 
         

TA Small/Mid Cap Value Service Class

     295       (2,654 )      (2,359 )        20       (1,761 )      (1,741 ) 
         

TA T. Rowe Price Small Cap Service Class

     52       (715 )      (663 )        225       (817 )      (592 ) 
         

TA TS&W International Equity Service Class

     51       (4,674 )      (4,623 )        4       (3,929 )      (3,925 ) 
         

TA WMC US Growth Service Class

     14,733       (6,283 )      8,450         917       (681 )      236  

 

10

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

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 Government Money Market V.I. Class I Shares

   $ 23     $ (78,906 )    $ (78,883 )      $ 31,032     $ (51,245 )    $ (20,213 ) 
         

TA Aegon Bond Service Class

     71,781       (270,740 )      (198,959 )              636       (255,325 )      (254,689 ) 
         

TA Aegon Sustainable Equity Income Service Class

     31,690       (196,888 )      (165,198 )        1,569       (266,085 )      (264,516 ) 
         

TA Aegon U.S. Government Securities Service Class

     30,707       (15,774 )      14,933         342       (76,968 )      (76,626 ) 
         

TA BlackRock iShares Edge 40 Service Class

     2,763       (49,668 )      (46,905 )        756       (29,846 )      (29,090 ) 
         

TA BlackRock Tactical Allocation Service Class

     2,817       (60,005 )      (57,188 )        177       (400,179 )      (400,002 ) 
         

TA International Focus Service Class

     10,201       (121,722 )      (111,521 )        19,075       (108,947 )      (89,872 ) 
         

TA Janus Mid-Cap Growth Service Class

     800       (91,337 )      (90,537 )        31       (36,469 )      (36,438 ) 
         

TA JPMorgan Enhanced Index Service Class

     -       (79,783 )      (79,783 )        8,048       (6,158 )      1,890  
         

TA JPMorgan Mid Cap Value Service Class

     1,610       (19,001 )      (17,391 )        -       (52,363 )      (52,363 ) 
         

TA Small/Mid Cap Value Service Class

     9,692       (81,485 )      (71,793 )        594       (58,881 )      (58,287 ) 
         

TA T. Rowe Price Small Cap Service Class

     2,102       (29,349 )      (27,247 )        8,948       (33,192 )      (24,244 ) 
         

TA TS&W International Equity Service Class

     800       (66,173 )      (65,373 )        58       (54,959 )      (54,901 ) 
         

TA WMC US Growth Service Class

     603,842       (281,145 )      322,697         33,652       (28,638 )      5,014  

 

11

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

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 Government Money Market V.I. Class I Shares

 

     

      12/31/2023        28,375        $8.86        to        $8.86      $    251,360        4.73  %      1.85  %      to        1.85  %      2.94  %      to        2.94  % 
     12/31/2022        37,435        8.61        to        8.61        322,157        1.35       1.85       to        1.85       (0.45 )      to        (0.45 ) 
     12/31/2021        39,799        8.64        to        8.64        344,039        -       1.85       to        1.85       (1.83 )      to        (1.83 ) 
     12/31/2020        40,568        8.81        to        8.81        357,214        0.28       1.85       to        1.85       (1.50 )      to        (1.50 ) 
     12/31/2019        41,160        8.94        to        8.94        367,944        1.97       1.85       to        1.85       0.10       to        0.10  

TA Aegon Bond Service Class

 

     12/31/2023        128,576        10.84        to        10.84        1,393,346        0.62       1.85       to        1.85       4.24       to        4.24  
     12/31/2022        147,895        10.40        to        10.40        1,537,493        2.30       1.85       to        1.85       (16.64 )      to        (16.64 ) 
     12/31/2021        170,238        12.47        to        12.47        2,122,955        1.32       1.85       to        1.85       (2.88 )      to        (2.88 ) 
     12/31/2020        209,027        12.84        to        12.84        2,684,005        4.10       1.85       to        1.85       5.44       to        5.44  
     12/31/2019        227,364        12.18        to        12.18        2,768,919        2.27       1.85       to        1.85       6.23       to        6.23  

TA Aegon Sustainable Equity Income Service Class

 

     12/31/2023        35,250        22.44        to        22.44        791,016        1.82       1.85       to        1.85       4.07       to        4.07  
     12/31/2022        43,115        21.56        to        21.56        929,699        1.76       1.85       to        1.85       (13.46 )      to        (13.46 ) 
     12/31/2021        54,948        24.92        to        24.92        1,369,088        2.00       1.85       to        1.85       19.88       to        19.88  
     12/31/2020        95,906        20.78        to        20.78        1,993,252        2.90       1.85       to        1.85       (9.28 )      to        (9.28 ) 
     12/31/2019        96,829        22.91        to        22.91        2,218,360        2.20       1.85       to        1.85       21.31       to        21.31  

TA Aegon U.S. Government Securities Service Class

 

     12/31/2023        56,027        9.69        to        9.69        542,710        1.47       1.85       to        1.85       1.79       to        1.79  
     12/31/2022        54,472        9.52        to        9.52        518,364        0.79       1.85       to        1.85       (14.88 )      to        (14.88 ) 
     12/31/2021        61,986        11.18        to        11.18        693,006        1.80       1.85       to        1.85       (4.32 )      to        (4.32 ) 
     12/31/2020        58,940        11.68        to        11.68        688,707        1.43       1.85       to        1.85       6.67       to        6.67  
     12/31/2019        55,691        10.95        to        10.95        610,040        1.76       1.85       to        1.85       4.40       to        4.40  

TA BlackRock iShares Edge 40 Service Class

 

     12/31/2023        5,971        15.03        to        15.03        89,767        1.79       1.85       to        1.85       7.07       to        7.07  
     12/31/2022        9,206        14.04        to        14.04        129,241        1.51       1.85       to        1.85       (16.00 )      to        (16.00 ) 
     12/31/2021        11,180        16.71        to        16.71        186,867        1.63       1.85       to        1.85       3.84       to        3.84  
     12/31/2020        16,430        16.10        to        16.10        264,467        2.21       1.85       to        1.85       7.45       to        7.45  
     12/31/2019        16,140        14.98        to        14.98        241,789        1.99       1.85       to        1.85       12.99       to        12.99  

TA BlackRock Tactical Allocation Service Class

 

     12/31/2023        25,951        18.88        to        18.88        489,856        2.36       1.85       to        1.85       12.78       to        12.78  
     12/31/2022        29,153        16.74        to        16.74        487,912        2.69       1.85       to        1.85       (17.74 )      to        (17.74 ) 
     12/31/2021        51,668        20.35        to        20.35        1,051,274        2.34       1.85       to        1.85       5.66       to        5.66  
     12/31/2020        80,665        19.26        to        19.26        1,553,330        1.76       1.85       to        1.85       11.11       to        11.11  
     12/31/2019        78,979        17.33        to        17.33        1,368,754        2.16       1.85       to        1.85       14.91       to        14.91  

TA International Focus Service Class

 

     12/31/2023        26,522        18.14        to        18.14        481,114        1.71       1.85       to        1.85       10.22       to        10.22  
     12/31/2022        33,114        16.46        to        16.46        544,999        2.66       1.85       to        1.85       (21.75 )      to        (21.75 ) 
     12/31/2021        38,132        21.03        to        21.03        802,075        1.09       1.85       to        1.85       8.60       to        8.60  
     12/31/2020        67,602        19.37        to        19.37        1,309,314        2.10       1.85       to        1.85       18.37       to        18.37  
     12/31/2019        70,860        16.36        to        16.36        1,159,384        1.38       1.85       to        1.85       25.07       to        25.07  

TA Janus Mid-Cap Growth Service Class

 

     12/31/2023        3,396        34.63        to        34.63        117,636        -       1.85       to        1.85       14.67       to        14.67  
     12/31/2022        6,428        30.20        to        30.20        194,165        -       1.85       to        1.85       (18.45 )      to        (18.45 ) 
     12/31/2021        7,551        37.04        to        37.04        279,707        0.10       1.85       to        1.85       14.85       to        14.85  
     12/31/2020        9,489        32.25        to        32.25        306,050        0.04       1.85       to        1.85       16.75       to        16.75  
     12/31/2019        9,348        27.62        to        27.62        258,233        -       1.85       to        1.85       33.83       to        33.83  

 

12

Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

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

  

 

     

 

 

  

TA JPMorgan Enhanced Index Service Class

 

     12/31/2023        12,045        $44.65        to        $44.65      $    537,833        0.57  %      1.85  %      to        1.85  %      25.06  %      to        25.06  % 
     12/31/2022        14,062        35.70        to        35.70        502,041        0.41       1.85       to        1.85       (20.04 )      to        (20.04 ) 

     

      12/31/2021        13,985        44.65        to        44.65        624,428        0.48       1.85       to        1.85       27.41       to        27.41  
     12/31/2020        53,545        35.04        to        35.04        1,876,395        1.26       1.85       to        1.85       17.66       to        17.66  
     12/31/2019        53,850        29.78        to        29.78        1,603,815        0.94       1.85       to        1.85       28.29       to        28.29  

TA JPMorgan Mid Cap Value Service Class

 

     12/31/2023        2,154        35.06        to        35.06        75,510        1.18       1.85       to        1.85       8.55       to        8.55  
     12/31/2022        2,706        32.30        to        32.30        87,416        0.46       1.85       to        1.85       (10.10 )      to        (10.10 ) 
     12/31/2021        4,237        35.93        to        35.93        152,225        0.66       1.85       to        1.85       26.48       to        26.48  
     12/31/2020        11,694        28.41        to        28.41        332,196        0.97       1.85       to        1.85       (0.82 )      to        (0.82 ) 
     12/31/2019        15,306        28.64        to        28.64        438,385        1.17       1.85       to        1.85       23.69       to        23.69  

TA Small/Mid Cap Value Service Class

 

     12/31/2023        8,461        35.09        to        35.09        296,867        0.86       1.85       to        1.85       10.10       to        10.10  
     12/31/2022        10,820        31.87        to        31.87        344,810        0.32       1.85       to        1.85       (10.20 )      to        (10.20 ) 
     12/31/2021        12,561        35.49        to        35.49        445,750        0.50       1.85       to        1.85       25.47       to        25.47  
     12/31/2020        15,114        28.28        to        28.28        427,474        1.02       1.85       to        1.85       1.84       to        1.84  
     12/31/2019        14,765        27.77        to        27.77        410,050        0.75       1.85       to        1.85       22.65       to        22.65  

TA T. Rowe Price Small Cap Service Class

 

     12/31/2023        3,993        45.05        to        45.05        179,885        -       1.85       to        1.85       18.67       to        18.67  
     12/31/2022        4,656        37.97        to        37.97        176,760        -       1.85       to        1.85       (24.02 )      to        (24.02 ) 
     12/31/2021        5,248        49.97        to        49.97        262,227        -       1.85       to        1.85       9.05       to        9.05  
     12/31/2020        6,961        45.82        to        45.82        318,974        -       1.85       to        1.85       21.04       to        21.04  
     12/31/2019        7,049        37.86        to        37.86        266,847        -       1.85       to        1.85       29.96       to        29.96  

TA TS&W International Equity Service Class

 

     12/31/2023        6,367        15.64        to        15.64        99,580        0.83       1.85       to        1.85       13.15       to        13.15  
     12/31/2022        10,990        13.82        to        13.82        151,905        2.63       1.85       to        1.85       (16.20 )      to        (16.20 ) 
     12/31/2021        14,915        16.49        to        16.49        245,987        1.76       1.85       to        1.85       11.13       to        11.13  
     12/31/2020        21,318        14.84        to        14.84        316,396        3.03       1.85       to        1.85       4.25       to        4.25  
     12/31/2019        20,008        14.24        to        14.24        284,835        1.16       1.85       to        1.85       18.52       to        18.52  

TA WMC US Growth Service Class

 

     12/31/2023        17,306        49.72        to        49.72        860,436        -       1.85       to        1.85       39.13       to        39.13  
     12/31/2022        8,856        35.74        to        35.74        316,456        -       1.85       to        1.85       (32.77 )      to        (32.77 ) 
     12/31/2021        8,620        53.15        to        53.15        458,194        -       1.85       to        1.85       18.17       to        18.17  
     12/31/2020        15,511        44.98        to        44.98        697,730        -       1.85       to        1.85       34.43       to        34.43  
     12/31/2019        25,576        33.46        to        33.46        855,823        -       1.85       to        1.85       37.12       to        37.12  

 

  (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.

 

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Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

Notes to Financial Statements

December 31, 2023

 

 

5. Financial Highlights (continued)

   **

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.

 

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Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

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 $50, proportionately from the subaccounts’ unit values. An annual charge of 1.85% is deducted (based on the death benefit selected) from the unit values of the subaccounts of the Separate Account for TLIC’s assumption of certain mortality and expense risks incurred in connection with the contract. The charge is assessed daily based on the net asset value of the Mutual Fund. Charges for administrative and mortality and expense risk are an expense of the subaccount. Charges reflected above are those currently assessed and may be subject to change. Contract owners should see their actual policy and any related attachments to determine their specific charges.

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.

 

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Table of Contents

Transamerica Life Insurance Company

Merrill Lynch Life Variable Annuity Separate Account C

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.

The subaccounts invest in the mutual funds listed in Footnote 1. These investments include funds managed by Transamerica Asset Management, Inc. (TAM). Transamerica Fund Services, Inc. (TFS) serves as a transfer agent to TAM, and Aegon USA Asset Management Holding, LLC (AAM) serves as a sub-advisor for certain funds managed by TAM. TAM, TFS and AAM are affiliated entities of TLIC and indirect wholly owned subsidiaries of Aegon N.V. Funds managed by TAM are identified by their fund name, which includes reference to Aegon, Transamerica or both. The Separate Account pays management fees to the related funds as detailed in the fund prospectus.

No charges other than those disclosed in Footnote 6 are deducted for the service rendered by related parties.

Contract owners may transfer funds between available subaccount options within the Separate Account. These transfers are performed at unit value at the time of the transfer.

 

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