Company Quick10K Filing
Quick10K
Transamerica Advisors Life Insurance
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
8-K 2018-12-06 Regulation FD, Exhibits
SPB Spectrum Brands Holdings 2,661
TRNC Tronc 646
BRFH Barfresh 40
RGUS REGI 5
JANL Janel 4
ETCK Enerteck 0
AMHI Ameri Holdings 0
DIVXZ Divall Insured Income 0
MPMI MPM Holdings 0
FMCF 4M Carbon Fiber 0
TALIC 2018-09-30
Part I. Financial Information
Item 1. Financial Statements
Note 1. Summary of Significant Accounting Policies
Note 2. Fair Value of Financial Instruments
Note 3. Investments
Note 4. Voba, Dac, and Dsi
Note 5. Variable Contracts Containing Guaranteed Benefits
Note 6. Income Taxes
Note 7. Aoci
Note 8. Stockholder's Equity and Statutory Accounting Principles
Note 9. Reinsurance
Note 10. Related Party Transactions
Note 11. Commitments and Contingencies
Note 12. Segment Information
Item 2. Management's Narrative Analysis of Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 talic-ex311_8.htm
EX-31.2 talic-ex312_7.htm
EX-32.1 talic-ex321_6.htm
EX-32.2 talic-ex322_9.htm

Transamerica Advisors Life Insurance Earnings 2018-09-30

TALIC 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 talic-10q_20180930.htm 10-Q talic-10q_20180930.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

Commission File No. 33-26322

 

TRANSAMERICA ADVISORS LIFE

INSURANCE COMPANY

(Exact name of Registrant as specified in its charter)

 

Arkansas

 

91-1325756

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

4333 Edgewood Road, NE

Cedar Rapids, Iowa 52499-0001

(Address of Principal Executive Offices)

(800) 346-3677

(Registrant’s telephone no. including area code)

Securities registered pursuant to Section 12(b) or 12(g) of the Act: None

Former name, former address and former fiscal year, if changed since last report: Not Applicable

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes      No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes      No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

 

Accelerated filer

 

 

 

 

 

 

 

 

 

Non-accelerated filer

 

 

 

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicated by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).      Yes      No

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common 250,000

REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) and (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.

 

 

 

 

 


 

 

 

TABLE OF CONTENTS

 

PART I. Financial Information

2

Item 1. Financial Statements

2

BALANCE SHEETS

2

STATEMENTS OF INCOME (LOSS)

4

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

5

STATEMENTS OF STOCKHOLDER’S EQUITY

6

STATEMENTS OF CASH FLOWS

7

NOTES TO FINANCIAL STATEMENTS (unaudited)

9

Note 1.  Summary of Significant Accounting Policies

9

Note 2.  Fair Value of Financial Instruments

12

Note 3.  Investments

20

Note 4.  Value of Business Acquired, Deferred Policy Acquisition Costs and Deferred Sales Inducements

32

Note 5.  Variable Contracts Containing Guaranteed Benefits

33

Note 6.  Income Taxes

34

Note 7.  Accumulated Other Comprehensive Income

36

Note 8.  Stockholder’s Equity and Statutory Accounting Principles

38

Note 9.  Reinsurance

39

Note 10.  Related Party Transactions

39

Note 11.  Commitments and Contingencies

41

Note 12.  Segment Information

42

Item 2. Managements Narrative Analysis of Results of Operations

44

Item 3. Quantitative and Qualitative Disclosures About Market Risk

61

Item 4. Controls and Procedures

61

PART II Other Information

61

Item 1. Legal Proceedings

61

Item 1A. Risk Factors

61

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

62

Item 3. Defaults upon Senior Securities

62

Item 4. Mine Safety Disclosures

62

Item 5. Other Information

62

Item 6. Exhibits

62

EXHIBIT INDEX

63

SIGNATURES

64

 

 

 

1


 

FINAL

PART I. Financial Information

Item 1. Financial Statements

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY

(A WHOLLY-OWNED SUBSIDIARY OF TRANSAMERICA CORPORATION)

BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

(dollars in thousands, except share data)

 

2018

 

 

2017

 

 

 

(unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

 

 

 

 

 

 

 

Fixed maturity available-for-sale securities, at estimated fair value

 

 

 

 

 

 

 

 

 

 

(amortized cost: 2018 - $1,173,737; 2017 - $1,418,128)

 

$

 

1,224,520

 

 

$

 

1,548,638

 

Equity available-for-sale securities, at estimated fair value

 

 

 

 

 

 

 

 

 

 

(cost: 2018 - $0; 2017 - $25,473)

 

 

 

-

 

 

 

 

28,497

 

Equity securities, at estimated fair value

 

 

 

 

 

 

 

 

 

 

(cost: 2018 - $25,473; 2017 - $0)

 

 

 

27,687

 

 

 

 

-

 

Limited partnerships

 

 

 

1,184

 

 

 

 

1,375

 

Mortgage loans on real estate

 

 

 

26,013

 

 

 

 

24,962

 

Policy loans

 

 

 

590,689

 

 

 

 

608,183

 

Derivative assets

 

 

 

10,788

 

 

 

 

8,212

 

Total investments

 

 

 

1,880,881

 

 

 

 

2,219,867

 

Cash and cash equivalents

 

 

 

276,020

 

 

 

 

270,307

 

Accrued investment income

 

 

 

27,907

 

 

 

 

33,303

 

Deferred policy acquisition costs

 

 

 

27,836

 

 

 

 

30,207

 

Deferred sales inducements

 

 

 

6,325

 

 

 

 

6,867

 

Value of business acquired

 

 

 

209,360

 

 

 

 

201,299

 

Goodwill

 

 

 

2,800

 

 

 

 

2,800

 

Income tax asset

 

 

 

1,483

 

 

 

 

-

 

Reinsurance receivables

 

 

 

1,090

 

 

 

 

239

 

Receivable for investments sold - net

 

 

 

292

 

 

 

 

-

 

Other assets

 

 

 

38,746

 

 

 

 

37,777

 

Recoverable of ceded guaranteed minimum income benefit embedded derivatives, at fair value

 

 

 

9,321

 

 

 

 

25,325

 

Separate Accounts assets

 

 

 

5,561,785

 

 

 

 

5,793,834

 

Total Assets

 

$

 

8,043,846

 

 

$

 

8,621,825

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Financial Statements

2


 

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY

(A WHOLLY-OWNED SUBSIDIARY OF TRANSAMERICA CORPORATION)

BALANCE SHEETS - Continued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

(dollars in thousands, except share data)

 

2018

 

 

2017

 

 

 

(unaudited)

 

 

 

 

LIABILITIES AND STOCKHOLDER’S EQUITY

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

Policyholder liabilities and accruals

 

 

 

 

 

 

 

 

 

 

Policyholder account balances

 

$

 

1,006,666

 

 

$

 

1,041,903

 

Future policy benefits

 

 

 

388,515

 

 

 

 

411,654

 

Claims and claims settlement expenses

 

 

 

36,960

 

 

 

 

37,679

 

Total policyholder liabilities and accruals

 

 

 

1,432,141

 

 

 

 

1,491,236

 

Payables for collateral under securities loaned, reverse repurchase agreements and derivatives

 

 

 

204,553

 

 

 

 

248,561

 

Checks not yet presented for payment

 

 

 

907

 

 

 

 

6,061

 

Derivative liabilities

 

 

 

344

 

 

 

 

2,226

 

Income tax liability

 

 

 

3,417

 

 

 

 

1,934

 

Affiliated payables - net

 

 

 

9,566

 

 

 

 

6,148

 

Affiliated short-term note payable

 

 

 

-

 

 

 

 

10,000

 

Reinsurance payables

 

 

 

184

 

 

 

 

194

 

Payable for investments purchased - net

 

 

 

-

 

 

 

 

93

 

Other liabilities

 

 

 

14,327

 

 

 

 

18,097

 

Separate Accounts liabilities

 

 

 

5,561,785

 

 

 

 

5,793,834

 

Total Liabilities

 

 

 

7,227,224

 

 

 

 

7,578,384

 

 

 

 

 

 

 

 

 

 

 

 

Stockholder’s Equity

 

 

 

 

 

 

 

 

 

 

Common stock ($10 par value; authorized 1,000,000 shares;

 

 

 

 

 

 

 

 

 

 

issued and outstanding: 250,000 shares)

 

 

 

2,500

 

 

 

 

2,500

 

Additional paid-in capital

 

 

 

1,381,038

 

 

 

 

1,378,311

 

Accumulated other comprehensive income, net of taxes

 

 

 

17,653

 

 

 

 

80,499

 

Retained Earnings (Deficit)

 

 

 

(584,569

)

 

 

 

(417,869

)

Total Stockholder’s Equity

 

 

 

816,622

 

 

 

 

1,043,441

 

Total Liabilities and Stockholder’s Equity

 

$

 

8,043,846

 

 

$

 

8,621,825

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Financial Statements

3


 

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY

(A WHOLLY-OWNED SUBSIDIARY OF TRANSAMERICA CORPORATION)

STATEMENTS OF INCOME (LOSS)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(dollars in thousands)

 

2018

 

2017

 

 

2018

 

2017

 

 

 

(unaudited)

 

 

(unaudited)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Policy charge revenue

 

$

 

35,978

 

$

 

37,454

 

 

$

 

109,365

 

$

 

112,299

 

Net investment income (loss)

 

 

 

22,364

 

 

 

27,427

 

 

 

 

68,863

 

 

 

81,788

 

Net realized investment gains (losses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized investment gains (losses), excluding other-than-temporary impairment losses on securities

 

 

 

84

 

 

 

4,711

 

 

 

 

8,970

 

 

 

6,926

 

Net realized investment gains (losses)

 

 

 

84

 

 

 

4,711

 

 

 

 

8,970

 

 

 

6,926

 

Net derivative gains (losses)

 

 

 

(15,168

)

 

 

(9,239

)

 

 

 

(41,644

)

 

 

(40,007

)

Total Revenues

 

 

 

43,258

 

 

 

60,353

 

 

 

 

145,554

 

 

 

161,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest credited to policyholder liabilities

 

 

 

12,661

 

 

 

13,207

 

 

 

 

40,835

 

 

 

39,560

 

Policy benefits (net of reinsurance recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018 - $182; $3,035; 2017 - $212; $1,385)

 

 

 

(2,403

)

 

 

(963

)

 

 

 

33,973

 

 

 

1,436

 

Amortization (accretion) of deferred policy acquisition costs

 

 

 

1,200

 

 

 

1,139

 

 

 

 

2,404

 

 

 

2,876

 

Amortization (accretion) of value of business acquired

 

 

 

1,809

 

 

 

11,295

 

 

 

 

11,236

 

 

 

16,513

 

Insurance, General and Administrative Expenses

 

 

 

9,542

 

 

 

9,739

 

 

 

 

26,829

 

 

 

25,159

 

Total Benefits and Expenses

 

 

 

22,809

 

 

 

34,417

 

 

 

 

115,277

 

 

 

85,544

 

Income (Loss) Before Taxes

 

 

 

20,449

 

 

 

25,936

 

 

 

 

30,277

 

 

 

75,462

 

Income Tax Expense (Benefit)

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

575

 

Net Income (Loss)

 

$

 

20,449

 

$

 

25,936

 

 

$

 

30,277

 

$

 

74,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Financial Statements

4


 

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY

(A WHOLLY-OWNED SUBSIDIARY OF TRANSAMERICA CORPORATION)

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

(dollars in thousands)

 

2018

 

 

2017

 

2018

 

 

2017

 

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

 

20,449

 

 

$

 

25,936

 

$

 

30,277

 

 

$

 

74,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Comprehensive Income (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses) on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized holding gains (losses) arising during the period

 

 

 

(8,868

)

 

 

 

1,592

 

 

 

(66,678

)

 

 

 

26,039

 

Reclassification adjustment for (gains) losses included in net income (loss)

 

 

 

(1,212

)

 

 

 

-

 

 

 

(13,572

)

 

 

 

(79

)

 

 

 

 

(10,080

)

 

 

 

1,592

 

 

 

(80,250

)

 

 

 

25,960

 

Net unrealized gains (losses) on cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses) on cash flow hedges arising during the period

 

 

 

66

 

 

 

 

(1,803

)

 

 

(1,050

)

 

 

 

888

 

Reclassification adjustment for (gains) losses included in net income (loss)

 

 

 

165

 

 

 

 

63

 

 

 

1,562

 

 

 

 

683

 

 

 

 

 

231

 

 

 

 

(1,740

)

 

 

512

 

 

 

 

1,571

 

Net unrealized other-than-temporary impairments on securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in previously recognized unrealized other-than-temporary impairments

 

 

 

591

 

 

 

 

407

 

 

 

524

 

 

 

 

1,076

 

 

 

 

 

591

 

 

 

 

407

 

 

 

524

 

 

 

 

1,076

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value of business acquired

 

 

 

6,319

 

 

 

 

(780

)

 

 

19,391

 

 

 

 

(4,739

)

Total other comprehensive income (loss), net of taxes

 

 

 

(2,939

)

 

 

 

(521

)

 

 

(59,823

)

 

 

 

23,868

 

Comprehensive Income (Loss)

 

$

 

17,510

 

 

$

 

25,415

 

$

 

(29,546

)

 

$

 

98,755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Financial Statements

5


 

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY

(A WHOLLY-OWNED SUBSIDIARY OF TRANSAMERICA CORPORATION)

STATEMENTS OF STOCKHOLDER’S EQUITY

 

 

 

Nine Months Ended

 

 

Twelve Months Ended

 

 

 

September 30,

 

 

December 31,

 

(dollars in thousands)

 

2018

 

 

2017

 

 

 

(unaudited)

 

 

 

 

 

 

Common Stock

 

$

 

2,500

 

 

$

 

2,500

 

 

 

 

 

 

 

 

 

 

 

 

Additional Paid-in Capital

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

 

1,378,311

 

 

$

 

1,425,816

 

Capital contributions from Transamerica Corporation

 

 

 

2,727

 

 

 

 

-

 

Return of capital to Transamerica Corporation

 

 

 

-

 

 

 

 

(47,505

)

Balance at end of period

 

$

 

1,381,038

 

 

$

 

1,378,311

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Other Comprehensive Income

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

 

80,499

 

 

$

 

55,350

 

Cumulative effect adjustment (a)

 

 

 

(3,023

)

 

 

 

-

 

Adjusted balance at beginning of period

 

 

 

77,476

 

 

 

 

55,350

 

Total other comprehensive income (loss), net of taxes

 

 

 

(59,823

)

 

 

 

25,149

 

Balance at end of period

 

$

 

17,653

 

 

$

 

80,499

 

 

 

 

 

 

 

 

 

 

 

 

Retained Earnings (Deficit)

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

 

(417,869

)

 

$

 

(377,274

)

Cumulative effect adjustment (a)

 

 

 

3,023

 

 

 

 

-

 

Adjusted balance at beginning of period

 

 

 

(414,846

)

 

 

 

(377,274

)

Net income (loss)

 

 

 

30,277

 

 

 

 

99,405

 

Cash dividend paid to Transamerica Corporation

 

 

 

(200,000

)

 

 

 

(140,000

)

Balance at end of period

 

$

 

(584,569

)

 

$

 

(417,869

)

 

 

 

 

 

 

 

 

 

 

 

Total Stockholder's Equity

 

$

 

816,622

 

 

$

 

1,043,441

 

 

 

(a)

See Notes to Financial Statements – Note 1, Summary of Significant Accounting Policies, Current Accounting Guidance, for discussion on the adjustment relating to Accounting Standards Update (“ASU”) 2016-01.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Financial Statements

6


 

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY

(A WHOLLY-OWNED SUBSIDIARY OF TRANSAMERICA CORPORATION)

STATEMENTS OF CASH FLOWS

 

 

 

Nine Months Ended

 

 

 

September 30,

 

(dollars in thousands)

 

2018

 

 

 

2017

 

 

 

(unaudited)

 

CASH FLOWS FROM  OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

 

30,277

 

 

 

$

 

74,887

 

Adjustments to reconcile net income (loss) to net cash and cash equivalents provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

Change in deferred policy acquisition costs

 

 

 

2,371

 

 

 

 

 

2,859

 

Change in deferred sales inducements

 

 

 

542

 

 

 

 

 

671

 

Change in value of business acquired

 

 

 

11,236

 

 

 

 

 

16,513

 

Change in benefit reserves, net of change in ceded reinsurance recoverable

 

 

 

(7,901

)

 

 

 

 

(40,083

)

Change in income tax accruals

 

 

 

-

 

 

 

 

 

575

 

Change in claims and claims settlement expenses

 

 

 

(719

)

 

 

 

 

6,324

 

Change in other operating assets and liabilities - net

 

 

 

(5,986

)

 

 

 

 

(8,366

)

Change in checks not yet presented for payment

 

 

 

(5,154

)

 

 

 

 

1,417

 

Amortization (accretion) of investments

 

 

 

(502

)

 

 

 

 

(929

)

Interest credited to policyholder liabilities

 

 

 

40,835

 

 

 

 

 

39,560

 

Net derivative (gains) losses

 

 

 

41,644

 

 

 

 

 

40,007

 

Net realized investment (gains) losses

 

 

 

(8,970

)

 

 

 

 

(6,926

)

Change in unrealized (gains) losses related to limited partnerships

 

 

 

(20

)

 

 

 

 

(2,999

)

Change in unrealized (gains) losses related to equity securities

 

 

 

809

 

 

 

 

 

-

 

Net cash and cash equivalents provided by/(used in) operating activities

 

 

 

98,462

 

 

 

 

 

123,510

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM  INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Sales of available-for-sale securities and mortgage loans

 

 

 

264,464

 

 

 

 

 

243,669

 

Maturities of available-for-sale securities and mortgage loans

 

 

 

148,358

 

 

 

 

 

139,435

 

Purchases of available-for-sale securities and mortgage loans

 

 

 

(159,433

)

 

 

 

 

(356,979

)

Sales of limited partnerships

 

 

 

211

 

 

 

 

 

97,497

 

Purchases of limited partnerships

 

 

 

-

 

 

 

 

 

(66,065

)

Cash received in connection with derivatives

 

 

 

38,215

 

 

 

 

 

50,677

 

Cash paid in connection with derivatives

 

 

 

(85,560

)

 

 

 

 

(91,553

)

Proceeds from the maturity or prepayment of policy loans

 

 

 

49,503

 

 

 

 

 

51,465

 

Payments for the origination of policy loans

 

 

 

(32,009

)

 

 

 

 

(32,319

)

Net settlement on futures contracts

 

 

 

(1,122

)

 

 

 

 

525

 

Net cash and cash equivalents provided by/(used in) investing activities

 

$

 

222,627

 

 

 

$

 

36,352

 

 

 

 

 

See Notes to Financial Statements

7


 

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY

(A WHOLLY-OWNED SUBSIDIARY OF TRANSAMERICA CORPORATION)

STATEMENTS OF CASH FLOWS - Continued

 

 

 

Nine Months Ended

 

 

 

September 30,

 

(dollars in thousands)

 

2018

 

 

 

2017

 

 

 

(unaudited)

 

CASH FLOWS  FROM  FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

Policyholder deposits

 

$

 

8,057

 

 

 

$

 

6,960

 

Policyholder withdrawals

 

 

 

(83,361

)

 

 

 

 

(84,737

)

Capital contributions from Transamerica Corporation

 

 

 

2,727

 

 

 

 

 

-

 

Cash dividend paid to Transamerica Corporation

 

 

 

(200,000

)

 

 

 

 

-

 

Return of capital to Transamerica Corporation

 

 

 

-

 

 

 

 

 

(35,760

)

Change in payables for collateral under securities loaned, reverse repurchase

   agreements and derivatives

 

 

 

(32,799

)

 

 

 

 

9,138

 

Cash receipts from affiliated short-term note payable

 

 

 

-

 

 

 

 

 

38,000

 

Cash paid on affiliated short term note payable

 

 

 

(10,000

)

 

 

 

 

(38,000

)

Net cash and cash equivalents provided by/(used in) financing activities

 

 

 

(315,376

)

 

 

 

 

(104,399

)

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents (a)

 

 

 

5,713

 

 

 

 

 

55,463

 

Cash and cash equivalents, beginning of period

 

 

 

270,307

 

 

 

 

 

267,844

 

Cash and cash equivalents, end of period

 

$

 

276,020

 

 

 

$

 

323,307

 

 

 

(a)

Included in net increase (decrease) in cash and cash equivalents is interest paid (2018 - $132; 2017 - $98), interest received (2018 - $2; 2017 - $6), and income taxes paid (2018 - $0; 2017 - $0).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Notes to Financial Statements

8


 

TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY

(A WHOLLY-OWNED SUBSIDIARY OF TRANSAMERICA CORPORATION)

NOTES TO FINANCIAL STATEMENTS (unaudited)

(dollars in thousands)

 

Note 1.  Summary of Significant Accounting Policies

Basis of Presentation

Transamerica Advisors Life Insurance Company (“TALIC,” the “Registrant,” the “Company,” “we,” “our,” or “us”) is a wholly-owned subsidiary of Transamerica Corporation (“TA Corp” or “the Parent”), which is an indirect wholly-owned subsidiary of Aegon N.V., a limited liability share company organized under Dutch law. Aegon N.V. and its subsidiaries and joint ventures have life insurance and pension operations in over twenty countries in Europe, the Americas, and Asia and are also active in savings and investment operations, accident and health insurance, and gene