Quarterly Unaudited Financial Information | 12 Months Ended |
Dec. 31, 2014 |
Quarterly Unaudited Financial Information | Note 14. Quarterly Unaudited Financial Information |
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As a result of the tax error related to the scheduling of certain deferred tax liabilities, identified in the period ended December 31, 2013, the Company has restated the unaudited interim financial statements for March 31, 2014, June 30, 2014, and September 30, 2014. The impact of the tax adjustments by period are shown below. Additionally, other out-of-period errors have been corrected in the periods to which they relate. These adjustments are not material, individually or in the aggregate, to either the 2014 quarterly periods or any previously issued financial statements. In addition, “Policyholder account balances” of $5,577, $10,989, and $15,235 was reclassified on the Balance Sheet to “Future policy benefits” as of March 31, 2014, June 30, 2014 and September 30, 2014, respectively. The following tables compare the previously reported Balance Sheets as of March 31, 2014, June 30, 2014 and September 30, 2014 and the previously reported Statements of Income, Comprehensive Income (Loss), Stockholder’s Equity, and Cash Flows for the periods ended March 31, 2014, June 30, 2014 and September 30, 2014 to the corresponding restated financial statements. |
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Transamerica Advisors Life Insurance Company |
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Balance Sheet (unaudited) |
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| | March 31, 2014 | |
(dollars in thousands, except share data) | | As Reported | | | Tax | | | Other | | | As Restated | |
Valuation | Adjustments(1) |
Allowance | |
Restatement | |
ASSETS | | | | | | | | | | | | | | | | |
Investments | | | | | | | | | | | | | | | | |
Fixed maturity available-for-sale securities, at estimated fair value (amortized cost: $1,583,423) | | $ | 1,706,347 | | | $ | - | | | $ | - | | | $ | 1,706,347 | |
Equity available-for-sale securities, at estimated fair value (cost: $33,927) | | | 36,040 | | | | - | | | | - | | | | 36,040 | |
Limited partnerships | | | 5,021 | | | | - | | | | - | | | | 5,021 | |
Mortgage loans on real estate | | | 44,471 | | | | - | | | | - | | | | 44,471 | |
Policy loans | | | 702,177 | | | | - | | | | - | | | | 702,177 | |
Derivative assets | | | 96 | | | | - | | | | - | | | | 96 | |
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Total investments | | | 2,494,152 | | | | - | | | | - | | | | 2,494,152 | |
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Cash and cash equivalents | | | 343,143 | | | | - | | | | - | | | | 343,143 | |
Accrued investment income | | | 33,798 | | | | - | | | | - | | | | 33,798 | |
Deferred policy acquisition costs | | | 33,382 | | | | - | | | | 1,900 | | | | 35,282 | |
Deferred sales inducements | | | 7,592 | | | | - | | | | - | | | | 7,592 | |
Value of business acquired | | | 281,346 | | | | - | | | | (2,000 | ) | | | 279,346 | |
Goodwill | | | 2,800 | | | | - | | | | - | | | | 2,800 | |
Income taxes - net | | | - | | | | 528 | | | | - | | | | 528 | |
Reinsurance receivables - net | | | 2,862 | | | | - | | | | - | | | | 2,862 | |
Receivable for investments sold - net | | | 2,014 | | | | - | | | | - | | | | 2,014 | |
Other assets | | | 34,736 | | | | - | | | | - | | | | 34,736 | |
Separate Accounts assets | | | 7,191,736 | | | | - | | | | - | | | | 7,191,736 | |
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Total Assets | | $ | 10,427,561 | | | $ | 528 | | | $ | (100 | ) | | $ | 10,427,989 | |
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-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
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| | March 31, 2014 | |
(dollars in thousands, except share data) | | As Reported | | | Tax | | | Other | | | As Restated | |
Valuation | Adjustments(1) |
Allowance | |
Restatement | |
LIABILITIES AND STOCKHOLDER’S EQUITY | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Policyholder liabilities and accruals | | | | | | | | | | | | | | | | |
Policyholder account balances | | $ | 1,257,003 | | | $ | - | | | $ | (7,777 | )(2) | | $ | 1,249,226 | |
Future policy benefits | | | 402,146 | | | | - | | | | 9,277 | (2) | | | 411,423 | |
Claims and claims settlement expenses | | | 43,241 | | | | - | | | | - | | | | 43,241 | |
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Total policyholder liabilities and accruals | | | 1,702,390 | | | | - | | | | 1,500 | | | | 1,703,890 | |
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Payables for collateral under securities loaned | | | 268,609 | | | | - | | | | - | | | | 268,609 | |
Checks not yet presented for payment | | | 7,818 | | | | - | | | | - | | | | 7,818 | |
Derivative liabilities | | | 18,756 | | | | - | | | | - | | | | 18,756 | |
Income taxes - net | | | 66,585 | | | | (65,905 | ) | | | (680 | ) | | | - | |
Affiliated payables - net | | | 4,338 | | | | - | | | | - | | | | 4,338 | |
Other liabilities | | | 3,040 | | | | - | | | | - | | | | 3,040 | |
Separate Accounts liabilities | | | 7,191,736 | | | | - | | | | - | | | | 7,191,736 | |
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Total Liabilities | | | 9,263,272 | | | | (65,905 | ) | | | 820 | | | | 9,198,187 | |
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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 | | | 1,372,161 | | | | - | | | | - | | | | 1,372,161 | |
Accumulated other comprehensive income, net of taxes | | | 58,384 | | | | 10,284 | | | | - | | | | 68,668 | |
Retained deficit | | | (268,756 | ) | | | 56,149 | | | | (920 | ) | | | (213,527 | ) |
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Total Stockholder’s Equity | | | 1,164,289 | | | | 66,433 | | | | (920 | ) | | | 1,229,802 | |
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Total Liabilities and Stockholder’s Equity | | $ | 10,427,561 | | | $ | 528 | | | $ | (100 | ) | | $ | 10,427,989 | |
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-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
-2 | Included in Other Adjustments is a reclassification of $5,577 from “Policyholder account balances” to “Future policy benefits”. | | | | | | | | | | | | | | | |
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| | June 30, 2014 | |
(dollars in thousands, except share data) | | As Reported | | | Tax | | | Other | | | As Restated | |
Valuation | Adjustments(1) |
Allowance | |
Restatement | |
ASSETS | | | | | | | | | | | | | | | | |
Investments | | | | | | | | | | | | | | | | |
Fixed maturity available-for-sale securities, at estimated fair value (amortized cost: $1,692,890) | | $ | 1,845,691 | | | $ | - | | | $ | - | | | $ | 1,845,691 | |
Equity available-for-sale securities, at estimated fair value (cost: $33,927) | | | 36,929 | | | | - | | | | - | | | | 36,929 | |
Limited partnerships | | | 30,214 | | | | - | | | | - | | | | 30,214 | |
Mortgage loans on real estate | | | 43,864 | | | | - | | | | - | | | | 43,864 | |
Policy loans | | | 692,331 | | | | - | | | | - | | | | 692,331 | |
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Total investments | | | 2,649,029 | | | | - | | | | - | | | | 2,649,029 | |
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Cash and cash equivalents | | | 243,054 | | | | - | | | | - | | | | 243,054 | |
Accrued investment income | | | 41,251 | | | | - | | | | - | | | | 41,251 | |
Deferred policy acquisition costs | | | 33,753 | | | | - | | | | 1,900 | | | | 35,653 | |
Deferred sales inducements | | | 7,697 | | | | - | | | | - | | | | 7,697 | |
Value of business acquired | | | 275,205 | | | | - | | | | (2,000 | ) | | | 273,205 | |
Goodwill | | | 2,800 | | | | - | | | | - | | | | 2,800 | |
Income taxes - net | | | - | | | | 529 | | | | - | | | | 529 | |
Reinsurance receivables - net | | | 3,293 | | | | - | | | | - | | | | 3,293 | |
Affiliated short - term note receivable | | | 50,000 | | | | - | | | | - | | | | 50,000 | |
Other assets | | | 34,591 | | | | - | | | | - | | | | 34,591 | |
Separate Accounts assets | | | 7,166,355 | | | | - | | | | - | | | | 7,166,355 | |
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Total Assets | | $ | 10,507,028 | | | $ | 529 | | | $ | (100 | ) | | $ | 10,507,457 | |
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-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
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| | June 30, 2014 | |
(dollars in thousands, except share data) | | As Reported | | | Tax | | | Other | | | As Restated | |
Valuation | Adjustments(1) |
Allowance | |
Restatement | |
LIABILITIES AND STOCKHOLDER’S EQUITY | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Policyholder liabilities and accruals | | | | | | | | | | | | | | | | |
Policyholder account balances | | $ | 1,249,958 | | | $ | - | | | $ | (13,189 | )(2) | | $ | 1,236,769 | |
Future policy benefits | | | 385,915 | | | | - | | | | 14,689 | (2) | | | 400,604 | |
Claims and claims settlement expenses | | | 31,750 | | | | - | | | | - | | | | 31,750 | |
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Total policyholder liabilities and accruals | | | 1,667,623 | | | | - | | | | 1,500 | | | | 1,669,123 | |
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Payables for collateral under securities loaned | | | 253,030 | | | | - | | | | - | | | | 253,030 | |
Checks not yet presented for payment | | | 6,903 | | | | - | | | | - | | | | 6,903 | |
Derivative liabilities | | | 41,492 | | | | - | | | | - | | | | 41,492 | |
Income taxes - net | | | 79,446 | | | | (78,766 | ) | | | (680 | ) | | | - | |
Affiliated payables - net | | | 7,163 | | | | - | | | | - | | | | 7,163 | |
Payable for investments purchased - net | | | 5,890 | | | | - | | | | - | | | | 5,890 | |
Other liabilities | | | 7,257 | | | | - | | | | - | | | | 7,257 | |
Separate Accounts liabilities | | | 7,166,355 | | | | - | | | | - | | | | 7,166,355 | |
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Total Liabilities | | | 9,235,159 | | | | (78,766 | ) | | | 820 | | | | 9,156,213 | |
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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 | | | 1,465,955 | | | | - | | | | - | | | | 1,465,955 | |
Accumulated other comprehensive income, net of taxes | | | 73,552 | | | | 18,632 | | | | - | | | | 92,184 | |
Retained deficit | | | (270,138 | ) | | | 60,663 | | | | (920 | ) | | | (210,395 | ) |
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Total Stockholder’s Equity | | | 1,271,869 | | | | 79,295 | | | | (920 | ) | | | 1,350,244 | |
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Total Liabilities and Stockholder’s Equity | | $ | 10,507,028 | | | $ | 529 | | | $ | (100 | ) | | $ | 10,507,457 | |
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-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
-2 | Included in Other Adjustments is a reclassification of $10,989 from “Policyholder account balances” to “Future policy benefits”. | | | | | | | | | | | | | | | |
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| | September 30, 2014 | |
(dollars in thousands, except share data) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
ASSETS | | | | | | | | | | | | | | | | |
Investments | | | | | | | | | | | | | | | | |
Fixed maturity available-for-sale securities, at estimated fair value (amortized cost: - $1,691,469) | | $ | 1,830,427 | | | $ | - | | | $ | - | | | $ | 1,830,427 | |
Equity available-for-sale securities, at estimated fair value (cost: $33,927) | | | 36,700 | | | | - | | | | - | | | | 36,700 | |
Limited partnerships | | | 29,820 | | | | - | | | | - | | | | 29,820 | |
Mortgage loans on real estate | | | 58,251 | | | | - | | | | - | | | | 58,251 | |
Policy loans | | | 682,601 | | | | - | | | | - | | | | 682,601 | |
Derivative assets | | | 6,051 | | | | - | | | | - | | | | 6,051 | |
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Total investments | | | 2,643,850 | | | | - | | | | - | | | | 2,643,850 | |
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Cash and cash equivalents | | | 295,652 | | | | - | | | | - | | | | 295,652 | |
Accrued investment income | | | 36,208 | | | | - | | | | - | | | | 36,208 | |
Deferred policy acquisition costs | | | 36,403 | | | | - | | | | - | | | | 36,403 | |
Deferred sales inducements | | | 8,278 | | | | - | | | | - | | | | 8,278 | |
Value of business acquired | | | 272,932 | | | | - | | | | - | | | | 272,932 | |
Goodwill | | | 2,800 | | | | - | | | | - | | | | 2,800 | |
Income taxes - net | | | - | | | | 530 | | | | - | | | | 530 | |
Reinsurance receivables - net | | | 523 | | | | - | | | | - | | | | 523 | |
Affiliated short - term note receivable | | | 50,000 | | | | - | | | | - | | | | 50,000 | |
Other assets | | | 35,072 | | | | - | | | | - | | | | 35,072 | |
Separate Accounts assets | | | 6,871,471 | | | | - | | | | - | | | | 6,871,471 | |
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Total Assets | | $ | 10,253,189 | | | $ | 530 | | | $ | - | | | $ | 10,253,719 | |
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-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
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| | September 30, 2014 | |
(dollars in thousands, except share data) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
LIABILITIES AND STOCKHOLDER’S EQUITY | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | |
Policyholder liabilities and accruals | | | | | | | | | | | | | | | | |
Policyholder account balances | | $ | 1,234,752 | | | $ | - | | | $ | (17,435 | )(2) | | $ | 1,217,317 | |
Future policy benefits | | | 396,837 | | | | - | | | | 15,235 | (2) | | | 412,072 | |
Claims and claims settlement expenses | | | 37,851 | | | | - | | | | - | | | | 37,851 | |
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Total policyholder liabilities and accruals | | | 1,669,440 | | | | - | | | | (2,200 | ) | | | 1,667,240 | |
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Payables for collateral under securities loaned, derivatives and reverse repurchase agreements | | | 274,886 | | | | - | | | | - | | | | 274,886 | |
Checks not yet presented for payment | | | 4,864 | | | | - | | | | - | | | | 4,864 | |
Derivative liabilities | | | 7,332 | | | | - | | | | - | | | | 7,332 | |
Income taxes - net | | | 128,572 | | | | (127,892 | ) | | | (680 | ) | | | - | |
Affiliated payables - net | | | 8,144 | | | | - | | | | - | | | | 8,144 | |
Payable for investments purchased - net | | | 11,336 | | | | - | | | | - | | | | 11,336 | |
Other liabilities | | | 5,825 | | | | - | | | | - | | | | 5,825 | |
Separate Accounts liabilities | | | 6,871,471 | | | | - | | | | - | | | | 6,871,471 | |
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Total Liabilities | | | 8,981,870 | | | | (127,892 | ) | | | (2,880 | ) | | | 8,851,098 | |
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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 | | | 1,498,858 | | | | - | | | | - | | | | 1,498,858 | |
Accumulated other comprehensive income, net of taxes | | | 68,897 | | | | 16,070 | | | | - | | | | 84,967 | |
Retained deficit | | | (298,936 | ) | | | 112,352 | | | | 2,880 | | | | (183,704 | ) |
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Total Stockholder’s Equity | | | 1,271,319 | | | | 128,422 | | | | 2,880 | | | | 1,402,621 | |
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Total Liabilities and Stockholder’s Equity | | $ | 10,253,189 | | | $ | 530 | | | $ | - | | | $ | 10,253,719 | |
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-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
-2 | Included in Other Adjustments is a reclassification of $15,235 from “Policyholder account balances” to “Future policy benefits”. | | | | | | | | | | | | | | | |
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Transamerica Advisors Life Insurance Company |
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Statement of Income (unaudited) |
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| | Three Months Ended March 31, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
Revenues | | | | | | | | | | | | | | | | |
Policy charge revenue | | $ | 46,455 | | | $ | - | | | $ | - | | | $ | 46,455 | |
Net investment income | | | 28,845 | | | | - | | | | - | | | | 28,845 | |
Net realized investment gains (losses) | | | | | | | | | | | | | | | | |
Other-than-temporary impairment losses on securities | | | - | | | | - | | | | - | | | | - | |
Portion of other-than-temporary impairment losses recognized in other comprehensive income | | | - | | | | - | | | | - | | | | - | |
Portion of other-than-temporary impairments previously recognized in other comprehensive income | | | (100 | ) | | | - | | | | - | | | | (100 | ) |
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Net other-than-temporary impairment losses on securities recognized in income | | | (100 | ) | | | - | | | | - | | | | (100 | ) |
Net realized investment gains, excluding other-than-temporary impairment losses on securities | | | 558 | | | | - | | | | - | | | | 558 | |
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Net realized investment gains | | | 458 | | | | - | | | | - | | | | 458 | |
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Net derivative losses | | | (14,069 | ) | | | - | | | | - | | | | (14,069 | ) |
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Total Revenues | | | 61,689 | | | | - | | | | - | | | | 61,689 | |
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Benefits and Expenses | | | | | | | | | | | | | | | | |
Interest credited to policyholder liabilities | | | 13,674 | | | | - | | | | - | | | | 13,674 | |
Policy benefits (net of reinsurance recoveries: | | | | | | | | | | | | | | | | |
$3,213) | | | 20,571 | | | | - | | | | (100 | ) | | | 20,471 | |
Reinsurance premium ceded | | | 1,602 | | | | - | | | | - | | | | 1,602 | |
Accretion of deferred policy acquisition costs | | | (180 | ) | | | - | | | | (170 | ) | | | (350 | ) |
Accretion of value of business acquired | | | (47 | ) | | | - | | | | (100 | ) | | | (147 | ) |
Insurance expenses and taxes | | | 11,028 | | | | - | | | | - | | | | 11,028 | |
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Total Benefits and Expenses | | | 46,648 | | | | - | | | | (370 | ) | | | 46,278 | |
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Income Before Taxes | | | 15,041 | | | | - | | | | 370 | | | | 15,411 | |
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Income Tax Expense | | | 13,759 | | | | (13,759 | ) | | | - | | | | - | |
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Net Income | | $ | 1,282 | | | $ | 13,759 | | | $ | 370 | | | $ | 15,411 | |
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-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
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| | Three Months Ended June 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
Revenues | | | | | | | | | | | | | | | | |
Policy charge revenue | | $ | 46,041 | | | $ | - | | | $ | - | | | $ | 46,041 | |
Net investment income | | | 29,983 | | | | - | | | | - | | | | 29,983 | |
Net realized investment gains | | | | | | | | | | | | | | | | |
Other-than-temporary impairment losses on securities | | | - | | | | - | | | | - | | | | - | |
Portion of other-than-temporary impairment losses recognized in other comprehensive income | | | - | | | | - | | | | - | | | | - | |
Portion of other-than-temporary impairments previously recognized in other comprehensive income | | | - | | | | - | | | | - | | | | - | |
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Net other-than-temporary impairment losses on securities recognized in income | | | - | | | | - | | | | - | | | | - | |
Net realized investment gains, excluding other-than-temporary impairment losses on securities | | | 545 | | | | - | | | | - | | | | 545 | |
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Net realized investment gains | | | 545 | | | | - | | | | - | | | | 545 | |
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Net derivative losses | | | (37,924 | ) | | | - | | | | - | | | | (37,924 | ) |
| | | | | | | | | | | | | | | | |
Total Revenues | | | 38,645 | | | | - | | | | - | | | | 38,645 | |
| | | | | | | | | | | | | | | | |
| | | | |
Benefits and Expenses | | | | | | | | | | | | | | | | |
Interest credited to policyholder liabilities | | | 14,249 | | | | - | | | | - | | | | 14,249 | |
Policy benefits (net of reinsurance recoveries: | | | | | | | | | | | | | | | | |
$833) | | | 6,742 | | | | - | | | | - | | | | 6,742 | |
Reinsurance premium ceded | | | 1,548 | | | | - | | | | - | | | | 1,548 | |
Accretion of deferred policy acquisition costs | | | (346 | ) | | | - | | | | - | | | | (346 | ) |
Amortization of value of business acquired | | | 1,199 | | | | - | | | | - | | | | 1,199 | |
Insurance expenses and taxes | | | 12,121 | | | | - | | | | - | | | | 12,121 | |
| | | | | | | | | | | | | | | | |
Total Benefits and Expenses | | | 35,513 | | | | - | | | | - | | | | 35,513 | |
| | | | | | | | | | | | | | | | |
Income Before Taxes | | | 3,132 | | | | - | | | | - | | | | 3,132 | |
| | | | | | | | | | | | | | | | |
| | | | |
Income Tax Expense | | | 4,514 | | | | (4,514 | ) | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
Net Income (Loss) | | $ | (1,382 | ) | | $ | 4,514 | | | $ | - | | | $ | 3,132 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
Revenues | | | | | | | | | | | | | | | | |
Policy charge revenue | | $ | 92,496 | | | $ | - | | | $ | - | | | $ | 92,496 | |
Net investment income | | | 58,828 | | | | - | | | | - | | | | 58,828 | |
Net realized investment gains (losses) | | | | | | | | | | | | | | | | |
Other-than-temporary impairment losses on securities | | | - | | | | - | | | | - | | | | - | |
Portion of other-than-temporary impairment losses recognized in other comprehensive income | | | - | | | | - | | | | - | | | | - | |
Portion of other-than-temporary impairments previously recognized in other comprehensive income | | | (100 | ) | | | - | | | | - | | | | (100 | ) |
| | | | | | | | | | | | | | | | |
Net other-than-temporary impairment losses on securities recognized in income | | | (100 | ) | | | - | | | | - | | | | (100 | ) |
Net realized investment gains, excluding other-than-temporary impairment losses on securities | | | 1,103 | | | | - | | | | - | | | | 1,103 | |
| | | | | | | | | | | | | | | | |
Net realized investment gains | | | 1,003 | | | | - | | | | - | | | | 1,003 | |
| | | | | | | | | | | | | | | | |
Net derivative losses | | | (51,993 | ) | | | - | | | | - | | | | (51,993 | ) |
| | | | | | | | | | | | | | | | |
Total Revenues | | | 100,334 | | | | - | | | | - | | | | 100,334 | |
| | | | | | | | | | | | | | | | |
| | | | |
Benefits and Expenses | | | | | | | | | | | | | | | | |
Interest credited to policyholder liabilities | | | 27,923 | | | | - | | | | - | | | | 27,923 | |
Policy benefits (net of reinsurance recoveries: | | | | | | | | | | | | | | | | |
$4,046) | | | 27,313 | | | | - | | | | (100 | ) | | | 27,213 | |
Reinsurance premium ceded | | | 3,150 | | | | - | | | | - | | | | 3,150 | |
Accretion of deferred policy acquisition costs | | | (526 | ) | | | - | | | | (170 | ) | | | (696 | ) |
Amortization of value of business acquired | | | 1,152 | | | | - | | | | (100 | ) | | | 1,052 | |
Insurance expenses and taxes | | | 23,149 | | | | - | | | | - | | | | 23,149 | |
| | | | | | | | | | | | | | | | |
Total Benefits and Expenses | | | 82,161 | | | | - | | | | (370 | ) | | | 81,791 | |
| | | | | | | | | | | | | | | | |
Income Before Taxes | | | 18,173 | | | | - | | | | 370 | | | | 18,543 | |
| | | | | | | | | | | | | | | | |
| | | | |
Income Tax Expense | | | 18,273 | | | | (18,273 | ) | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
Net Income (Loss) | | $ | (100 | ) | | $ | 18,273 | | | $ | 370 | | | $ | 18,543 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
Revenues | | | | | | | | | | | | | | | | |
Policy charge revenue | | $ | 45,930 | | | $ | - | | | $ | - | | | $ | 45,930 | |
Net investment income | | | 29,515 | | | | - | | | | - | | | | 29,515 | |
Net realized investment gains (losses) | | | | | | | | | | | | | | | | |
Other-than-temporary impairment losses on securities | | | - | | | | - | | | | - | | | | - | |
Portion of other-than-temporary impairments previously recognized in other comprehensive income | | | (4 | ) | | | - | | | | - | | | | (4 | ) |
| | | | | | | | | | | | | | | | |
Net other-than-temporary impairment losses on securities recognized in income | | | (4 | ) | | | - | | | | - | | | | (4 | ) |
Net realized investment gains, excluding other-than-temporary impairment losses on securities | | | 1,294 | | | | - | | | | - | | | | 1,294 | |
| | | | | | | | | | | | | | | | |
Net realized investment gains | | | 1,290 | | | | - | | | | - | | | | 1,290 | |
| | | | | | | | | | | | | | | | |
Net derivative gains | | | 7,204 | | | | - | | | | - | | | | 7,204 | |
| | | | | | | | | | | | | | | | |
Total Revenues | | | 83,939 | | | | - | | | | - | | | | 83,939 | |
| | | | | | | | | | | | | | | | |
| | | | |
Benefits and Expenses | | | | | | | | | | | | | | | | |
Interest credited to policyholder liabilities | | | 13,755 | | | | - | | | | - | | | | 13,755 | |
Policy benefits (net of reinsurance recoveries: | | | | | | | | | | | | | | | | |
$146) | | | 30,593 | | | | - | | | | (3,700 | ) | | | 26,893 | |
Reinsurance premium ceded | | | 1,118 | | | | - | | | | - | | | | 1,118 | |
Accretion of deferred policy acquisition costs | | | (2,579 | ) | | | - | | | | 1,900 | | | | (679 | ) |
Amortization of value of business acquired | | | 6,877 | | | | - | | | | (2,000 | ) | | | 4,877 | |
Insurance expenses and taxes | | | 11,284 | | | | - | | | | - | | | | 11,284 | |
| | | | | | | | | | | | | | | | |
Total Benefits and Expenses | | | 61,048 | | | | - | | | | (3,800 | ) | | | 57,248 | |
| | | | | | | | | | | | | | | | |
Income Before Taxes | | | 22,891 | | | | - | | | | 3,800 | | | | 26,691 | |
| | | | | | | | | | | | | | | | |
| | | | |
Income Tax Expense | | | 51,689 | | | | (51,689 | ) | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
Net Income (Loss) | | $ | (28,798 | ) | | $ | 51,689 | | | $ | 3,800 | | | $ | 26,691 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
Transamerica Advisors Life Insurance Company |
|
Statement of Income (unaudited) |
|
|
|
|
|
|
| | | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
Revenues | | | | | | | | | | | | | | | | |
Policy charge revenue | | $ | 138,426 | | | $ | - | | | $ | - | | | $ | 138,426 | |
Net investment income | | | 88,343 | | | | - | | | | - | | | | 88,343 | |
Net realized investment gains (losses) | | | | | | | | | | | | | | | | |
Other-than-temporary impairment losses on securities | | | - | | | | - | | | | - | | | | - | |
Portion of other-than-temporary impairments previously recognized in other comprehensive income | | | (104 | ) | | | - | | | | - | | | | (104 | ) |
| | | | | | | | | | | | | | | | |
Net other-than-temporary impairment losses on securities recognized in income | | | (104 | ) | | | - | | | | - | | | | (104 | ) |
Net realized investment gains, excluding other-than-temporary impairment losses on securities | | | 2,397 | | | | - | | | | - | | | | 2,397 | |
| | | | | | | | | | | | | | | | |
Net realized investment gains | | | 2,293 | | | | - | | | | - | | | | 2,293 | |
| | | | | | | | | | | | | | | | |
Net derivative losses | | | (44,789 | ) | | | - | | | | - | | | | (44,789 | ) |
| | | | | | | | | | | | | | | | |
Total Revenues | | | 184,273 | | | | - | | | | - | | | | 184,273 | |
| | | | | | | | | | | | | | | | |
| | | | |
Benefits and Expenses | | | | | | | | | | | | | | | | |
Interest credited to policyholder liabilities | | | 41,678 | | | | - | | | | - | | | | 41,678 | |
Policy benefits (net of reinsurance recoveries: | | | | | | | | | | | | | | | | |
$4,192) | | | 57,906 | | | | - | | | | (3,800 | ) | | | 54,106 | |
Reinsurance premium ceded | | | 4,268 | | | | - | | | | - | | | | 4,268 | |
Accretion of deferred policy acquisition costs | | | (3,105 | ) | | | - | | | | 1,730 | | | | (1,375 | ) |
Amortization of value of business acquired | | | 8,029 | | | | - | | | | (2,100 | ) | | | 5,929 | |
Insurance expenses and taxes | | | 34,433 | | | | - | | | | - | | | | 34,433 | |
| | | | | | | | | | | | | | | | |
Total Benefits and Expenses | | | 143,209 | | | | - | | | | (4,170 | ) | | | 139,039 | |
| | | | | | | | | | | | | | | | |
Income Before Taxes | | | 41,064 | | | | - | | | | 4,170 | | | | 45,234 | |
| | | | | | | | | | | | | | | | |
| | | | |
Income Tax Expense | | | 69,962 | | | | (69,962 | ) | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
Net Income (Loss) | | $ | (28,898 | ) | | $ | 69,962 | | | $ | 4,170 | | | $ | 45,234 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
Transamerica Advisors Life Insurance Company |
|
Statement of Comprehensive Income (unaudited) |
|
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
| | | | |
Net Income | | $ | 1,282 | | | $ | 13,759 | | | $ | 370 | | | $ | 15,411 | |
| | | | | | | | | | | | | | | | |
| | | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | |
Net unrealized gains on available-for-sale securities | | | | | | | | | | | | | | | | |
Net unrealized holding gains arising during the period | | | 37,550 | | | | - | | | | - | | | | 37,550 | |
Reclassification adjustment for gains included in net income | | | (351 | ) | | | - | | | | - | | | | (351 | ) |
| | | | | | | | | | | | | | | | |
| | | 37,199 | | | | - | | | | - | | | | 37,199 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net unrealized losses on cash flow hedges | | | | | | | | | | | | | | | | |
Net unrealized losses on cash flow hedges arising during the period | | | (1,525 | ) | | | - | | | | - | | | | (1,525 | ) |
Reclassification adjustment for gains included in net income | | | (2 | ) | | | - | | | | - | | | | (2 | ) |
| | | | | | | | | | | | | | | | |
| | | (1,527 | ) | | | - | | | | - | | | | (1,527 | ) |
| | | | | | | | | | | | | | | | |
Net unrealized other-than-temporary impairments on securities | | | | | | | | | | | | | | | | |
Change in previously recognized unrealized other-than-temporary impairments | | | (905 | ) | | | - | | | | - | | | | (905 | ) |
Reclassification adjustment for other-than-temporary impairments included in net income | | | 100 | | | | - | | | | - | | | | 100 | |
| | | | | | | | | | | | | | | | |
| | | (805 | ) | | | - | | | | - | | | | (805 | ) |
| | | | | | | | | | | | | | | | |
Adjustments | | | | | | | | | | | | | | | | |
Value of business acquired | | | (5,902 | ) | | | - | | | | - | | | | (5,902 | ) |
Deferred income taxes | | | (10,284 | ) | | | 10,284 | | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
| | | (16,186 | ) | | | 10,284 | | | | - | | | | (5,902 | ) |
| | | | | | | | | | | | | | | | |
Total other comprehensive income, net of taxes | | | 18,681 | | | | 10,284 | | | | - | | | | 28,965 | |
| | | | | | | | | | | | | | | | |
Comprehensive Income | | $ | 19,963 | | | $ | 24,043 | | | $ | 370 | | | $ | 44,376 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
| | | | |
Net Income (Loss) | | $ | (1,382 | ) | | $ | 4,514 | | | $ | - | | | $ | 3,132 | |
| | | | | | | | | | | | | | | | |
| | | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | |
Net unrealized gains on available-for-sale securities | | | | | | | | | | | | | | | | |
Net unrealized holding gains arising during the period | | | 30,813 | | | | - | | | | - | | | | 30,813 | |
Reclassification adjustment for losses included in net income | | | 448 | | | | - | | | | - | | | | 448 | |
| | | | | | | | | | | | | | | | |
| | | 31,261 | | | | - | | | | - | | | | 31,261 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net unrealized losses on cash flow hedges | | | | | | | | | | | | | | | | |
Net unrealized losses on cash flow hedges arising during the period | | | (2,912 | ) | | | - | | | | - | | | | (2,912 | ) |
Reclassification adjustment for losses included in net income | | | 679 | | | | - | | | | - | | | | 679 | |
| | | | | | | | | | | | | | | | |
| | | (2,233 | ) | | | - | | | | - | | | | (2,233 | ) |
| | | | | | | | | | | | | | | | |
Net unrealized other-than-temporary impairments on securities | | | | | | | | | | | | | | | | |
Change in previously recognized unrealized other-than-temporary impairments | | | (492 | ) | | | - | | | | - | | | | (492 | ) |
Reclassification adjustment for other-than-temporary impairments included in net income | | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
| | | (492 | ) | | | - | | | | - | | | | (492 | ) |
| | | | | | | | | | | | | | | | |
Adjustments | | | | | | | | | | | | | | | | |
Value of business acquired | | | (5,020 | ) | | | - | | | | - | | | | (5,020 | ) |
Deferred income taxes | | | (8,348 | ) | | | 8,348 | | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
| | | (13,368 | ) | | | 8,348 | | | | - | | | | (5,020 | ) |
| | | | | | | | | | | | | | | | |
Total other comprehensive income, net of taxes | | | 15,168 | | | | 8,348 | | | | - | | | | 23,516 | |
| | | | | | | | | | | | | | | | |
Comprehensive Income | | $ | 13,786 | | | $ | 12,862 | | | $ | - | | | $ | 26,648 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
| | | | |
Net Income (Loss) | | $ | (100 | ) | | $ | 18,273 | | | $ | 370 | | | $ | 18,543 | |
| | | | | | | | | | | | | | | | |
| | | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | |
Net unrealized gains on available-for-sale securities | | | | | | | | | | | | | | | | |
Net unrealized holding gains arising during the period | | | 68,363 | | | | - | | | | - | | | | 68,363 | |
Reclassification adjustment for losses included in net income | | | 97 | | | | - | | | | - | | | | 97 | |
| | | | | | | | | | | | | | | | |
| | | 68,460 | | | | - | | | | - | | | | 68,460 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net unrealized losses on cash flow hedges | | | | | | | | | | | | | | | | |
Net unrealized losses on cash flow hedges arising during the period | | | (4,437 | ) | | | - | | | | - | | | | (4,437 | ) |
Reclassification adjustment for losses included in net income | | | 677 | | | | - | | | | - | | | | 677 | |
| | | | | | | | | | | | | | | | |
| | | (3,760 | ) | | | - | | | | - | | | | (3,760 | ) |
| | | | | | | | | | | | | | | | |
Net unrealized other-than-temporary impairments on securities | | | | | | | | | | | | | | | | |
Change in previously recognized unrealized other-than-temporary impairments | | | (1,397 | ) | | | - | | | | - | | | | (1,397 | ) |
Reclassification adjustment for other-than-temporary impairments included in net income | | | 100 | | | | - | | | | - | | | | 100 | |
| | | | | | | | | | | | | | | | |
| | | (1,297 | ) | | | - | | | | - | | | | (1,297 | ) |
| | | | | | | | | | | | | | | | |
Adjustments | | | | | | | | | | | | | | | | |
Value of business acquired | | | (10,922 | ) | | | - | | | | - | | | | (10,922 | ) |
Deferred income taxes | | | (18,632 | ) | | | 18,632 | | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
| | | (29,554 | ) | | | 18,632 | | | | - | | | | (10,922 | ) |
| | | | | | | | | | | | | | | | |
Total other comprehensive income, net of taxes | | | 33,849 | | | | 18,632 | | | | - | | | | 52,481 | |
| | | | | | | | | | | | | | | | |
Comprehensive Income | | $ | 33,749 | | | $ | 36,905 | | | $ | 370 | | | $ | 71,024 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
| | | | |
Net Income (Loss) | | $ | (28,798 | ) | | $ | 51,689 | | | $ | 3,800 | | | $ | 26,691 | |
| | | | | | | | | | | | | | | | |
| | | | |
Other Comprehensive Income (Loss) | | | | | | | | | | | | | | | | |
Net unrealized losses on available-for-sale securities | | | | | | | | | | | | | | | | |
Net unrealized holding losses arising during the period | | | (12,452 | ) | | | - | | | | - | | | | (12,452 | ) |
Reclassification adjustment for losses included in net income | | | 103 | | | | - | | | | - | | | | 103 | |
| | | | | | | | | | | | | | | | |
| | | (12,349 | ) | | | - | | | | - | | | | (12,349 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Net unrealized gains on cash flow hedges | | | | | | | | | | | | | | | | |
Net unrealized gain on cash flow hedges arising during the period | | | 2,261 | | | | - | | | | - | | | | 2,261 | |
Reclassification adjustment for losses included in net income | | | 256 | | | | - | | | | - | | | | 256 | |
| | | | | | | | | | | | | | | | |
| | | 2,517 | | | | - | | | | - | | | | 2,517 | |
| | | | | | | | | | | | | | | | |
Net unrealized other-than-temporary impairments on securities | | | | | | | | | | | | | | | | |
Change in previously recognized unrealized other-than-temporary impairments | | | (1,727 | ) | | | - | | | | - | | | | (1,727 | ) |
Reclassification adjustment for other-than-temporary impairments included in net income | | | 4 | | | | - | | | | - | | | | 4 | |
| | | | | | | | | | | | | | | | |
| | | (1,723 | ) | | | - | | | | - | | | | (1,723 | ) |
| | | | | | | | | | | | | | | | |
Adjustments | | | | | | | | | | | | | | | | |
Value of business acquired | | | 4,338 | | | | - | | | | - | | | | 4,338 | |
Deferred income taxes | | | 2,562 | | | | (2,562 | ) | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
| | | 6,900 | | | | (2,562 | ) | | | - | | | | 4,338 | |
| | | | | | | | | | | | | | | | |
Total other comprehensive loss, net of taxes | | | (4,655 | ) | | | (2,562 | ) | | | - | | | | (7,217 | ) |
| | | | | | | | | | | | | | | | |
Comprehensive Income (Loss) | | $ | (33,453 | ) | | $ | 49,127 | | | $ | 3,800 | | | $ | 19,474 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
Transamerica Advisors Life Insurance Company |
|
Statement of Comprehensive Income (unaudited) |
|
|
|
|
|
|
| | | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
| | | | |
Net Income (Loss) | | $ | (28,898 | ) | | $ | 69,962 | | | $ | 4,170 | | | $ | 45,234 | |
| | | | | | | | | | | | | | | | |
| | | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | |
Net unrealized gains on available-for-sale securities | | | | | | | | | | | | | | | | |
Net unrealized holding gains arising during the period | | | 55,911 | | | | - | | | | - | | | | 55,911 | |
Reclassification adjustment for losses included in net income | | | 200 | | | | - | | | | - | | | | 200 | |
| | | | | | | | | | | | | | | | |
| | | 56,111 | | | | - | | | | - | | | | 56,111 | |
| | | | | | | | | | | | | | | | |
Net unrealized losses on cash flow hedges | | | | | | | | | | | | | | | | |
Net unrealized losses on cash flow hedges arising during the period | | | (2,176 | ) | | | - | | | | - | | | | (2,176 | ) |
Reclassification adjustment for losses included in net income | | | 933 | | | | - | | | | - | | | | 933 | |
| | | | | | | | | | | | | | | | |
| | | (1,243 | ) | | | - | | | | - | | | | (1,243 | ) |
| | | | | | | | | | | | | | | | |
Net unrealized other-than-temporary impairments on securities | | | | | | | | | | | | | | | | |
Change in previously recognized unrealized other-than-temporary impairments | | | (3,124 | ) | | | - | | | | - | | | | (3,124 | ) |
Reclassification adjustment for other-than-temporary impairments included in net income | | | 104 | | | | - | | | | - | | | | 104 | |
| | | | | | | | | | | | | | | | |
| | | (3,020 | ) | | | - | | | | - | | | | (3,020 | ) |
| | | | | | | | | | | | | | | | |
Adjustments | | | | | | | | | | | | | | | | |
Value of business acquired | | | (6,584 | ) | | | - | | | | - | | | | (6,584 | ) |
Deferred income taxes | | | (16,070 | ) | | | 16,070 | | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
| | | (22,654 | ) | | | 16,070 | | | | - | | | | (6,584 | ) |
| | | | | | | | | | | | | | | | |
Total other comprehensive income, net of taxes | | | 29,194 | | | | 16,070 | | | | - | | | | 45,264 | |
| | | | | | | | | | | | | | | | |
Comprehensive Income | | $ | 296 | | | $ | 86,032 | | | $ | 4,170 | | | $ | 90,498 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
Transamerica Advisors Life Insurance Company |
|
Statement of Stockholder’s Equity (unaudited) |
|
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
| | | | |
Common Stock | | $ | 2,500 | | | $ | - | | | $ | - | | | $ | 2,500 | |
| | | | |
Additional Paid-in Capital | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 1,366,636 | | | $ | - | | | $ | - | | | $ | 1,366,636 | |
Capital contribution from AEGON USA, LLC | | | 5,525 | | | | - | | | | - | | | | 5,525 | |
| | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 1,372,161 | | | $ | - | | | $ | - | | | $ | 1,372,161 | |
| | | | | | | | | | | | | | | | |
| | | | |
Accumulated Other Comprehensive Income | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 39,703 | | | $ | - | | | $ | - | | | $ | 39,703 | |
Total other comprehensive income, net of taxes | | | 18,681 | | | | 10,284 | | | | - | | | | 28,965 | |
| | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 58,384 | | | $ | 10,284 | | | $ | - | | | $ | 68,668 | |
| | | | | | | | | | | | | | | | |
| | | | |
Retained Deficit | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | (270,038 | ) | | $ | 42,390 | | | $ | (1,290 | ) | | $ | (228,938 | ) |
Net income | | | 1,282 | | | | 13,759 | | | | 370 | | | | 15,411 | |
| | | | | | | | | | | | | | | | |
Balance at end of period | | $ | (268,756 | ) | | $ | 56,149 | | | $ | (920 | ) | | $ | (213,527 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Stockholder’s Equity | | $ | 1,164,289 | | | $ | 66,433 | | | $ | (920 | ) | | $ | 1,229,802 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
| | | | |
Common Stock | | $ | 2,500 | | | $ | - | | | $ | - | | | $ | 2,500 | |
| | | | |
Additional Paid-in Capital | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 1,366,636 | | | $ | - | | | $ | - | | | $ | 1,366,636 | |
Capital contribution from AEGON USA, LLC | | | 99,319 | | | | - | | | | - | | | | 99,319 | |
| | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 1,465,955 | | | $ | - | | | $ | - | | | $ | 1,465,955 | |
| | | | | | | | | | | | | | | | |
| | | | |
Accumulated Other Comprehensive Income | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 39,703 | | | $ | - | | | $ | - | | | $ | 39,703 | |
Total other comprehensive income, net of taxes | | | 33,849 | | | | 18,632 | | | | - | | | | 52,481 | |
| | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 73,552 | | | $ | 18,632 | | | $ | - | | | $ | 92,184 | |
| | | | | | | | | | | | | | | | |
| | | | |
Retained Deficit | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | (270,038 | ) | | $ | 42,390 | | | $ | (1,290 | ) | | $ | (228,938 | ) |
Net income (loss) | | | (100 | ) | | | 18,273 | | | | 370 | | | | 18,543 | |
| | | | | | | | | | | | | | | | |
Balance at end of period | | $ | (270,138 | ) | | $ | 60,663 | | | $ | (920 | ) | | $ | (210,395 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Stockholder’s Equity | | $ | 1,271,869 | | | $ | 79,295 | | | $ | (920 | ) | | $ | 1,350,244 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
| | | | |
Common Stock | | $ | 2,500 | | | $ | - | | | $ | - | | | $ | 2,500 | |
| | | | |
Additional Paid-in Capital | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 1,366,636 | | | $ | - | | | $ | - | | | $ | 1,366,636 | |
Capital contribution from AEGON USA, LLC | | | 132,222 | | | | - | | | | - | | | | 132,222 | |
| | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 1,498,858 | | | $ | - | | | $ | - | | | $ | 1,498,858 | |
| | | | | | | | | | | | | | | | |
| | | | |
Accumulated Other Comprehensive Income | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 39,703 | | | $ | - | | | $ | - | | | $ | 39,703 | |
Total other comprehensive income, net of taxes | | | 29,194 | | | | 16,070 | | | | - | | | | 45,264 | |
| | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 68,897 | | | $ | 16,070 | | | $ | - | | | $ | 84,967 | |
| | | | | | | | | | | | | | | | |
| | | | |
Retained Deficit | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | (270,038 | ) | | $ | 42,390 | | | $ | (1,290 | ) | | $ | (228,938 | ) |
Net income (loss) | | | (28,898 | ) | | | 69,962 | | | | 4,170 | | | | 45,234 | |
| | | | | | | | | | | | | | | | |
Balance at end of period | | $ | (298,936 | ) | | $ | 112,352 | | | $ | 2,880 | | | $ | (183,704 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Total Stockholder’s Equity | | $ | 1,271,319 | | | $ | 128,422 | | | $ | 2,880 | | | $ | 1,402,621 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
|
|
|
Transamerica Advisors Life Insurance Company |
|
Statement of Cash Flows (unaudited) |
|
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
CASH FLOWS FROM OPERATING | | | | | | | | | | | | | | | | |
ACTIVITIES |
Net income | | $ | 1,282 | | | $ | 13,759 | | | $ | 370 | | | $ | 15,411 | |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | | | | | | | | | | | | | | | | |
Change in deferred policy acquisition costs | | | (243 | ) | | | - | | | | (170 | ) | | | (413 | ) |
Change in deferred sales inducements | | | (48 | ) | | | - | | | | - | | | | (48 | ) |
Change in value of business acquired | | | (47 | ) | | | - | | | | (100 | ) | | | (147 | ) |
Change in benefit reserves | | | 1,364 | | | | - | | | | (100 | ) | | | 1,264 | |
Change in income tax accruals | | | 14,264 | | | | (13,759 | ) | | | - | | | | 505 | |
Change in claims and claims settlement expenses | | | 14,953 | | | | - | | | | - | | | | 14,953 | |
Change in other operating assets and liabilities, net | | | (8,246 | ) | | | - | | | | - | | | | (8,246 | ) |
Change in checks not yet presented for payment | | | (262 | ) | | | - | | | | - | | | | (262 | ) |
Amortization of investments | | | 380 | | | | - | | | | - | | | | 380 | |
Interest credited to policyholder liabilities | | | 13,674 | | | | - | | | | - | | | | 13,674 | |
Net derivative losses | | | 14,069 | | | | - | | | | - | | | | 14,069 | |
Net realized investment gains | | | (458 | ) | | | - | | | | - | | | | (458 | ) |
| | | | | | | | | | | | | | | | |
Net cash and cash equivalents provided by operating activities | | | 50,682 | | | | - | | | | - | | | | 50,682 | |
| | | | | | | | | | | | | | | | |
| | | | |
CASH FLOWS FROM INVESTING | | | | | | | | | | | | | | | | |
ACTIVITIES |
Sales of available-for-sale securities | | | 30,848 | | | | - | | | | - | | | | 30,848 | |
Maturities of available-for-sale securities and mortgage loans | | | 73,351 | | | | - | | | | - | | | | 73,351 | |
Purchases of available-for-sale securities | | | (55,745 | ) | | | - | | | | - | | | | (55,745 | ) |
Cash received in connection with derivatives | | | 2,666 | | | | - | | | | - | | | | 2,666 | |
Cash paid in connection with derivatives | | | (48,125 | ) | | | - | | | | - | | | | (48,125 | ) |
Policy loans on insurance contracts, net | | | 7,909 | | | | - | | | | - | | | | 7,909 | |
Net settlement on futures contracts | | | (1,363 | ) | | | - | | | | - | | | | (1,363 | ) |
Other | | | 23 | | | | - | | | | - | | | | 23 | |
| | | | | | | | | | | | | | | | |
Net cash and cash equivalents provided by investing activities | | $ | 9,564 | | | $ | - | | | $ | - | | | $ | 9,564 | |
| | | | | | | | | | | | | | | | |
| | | | |
CASH FLOWS FROM FINANCING | | | | | | | | | | | | | | | | |
ACTIVITIES |
Policyholder deposits | | $ | 6,545 | | | $ | - | | | $ | - | | | $ | 6,545 | |
Policyholder withdrawals | | | (39,013 | ) | | | - | | | | - | | | | (39,013 | ) |
Capital contribution from AEGON USA, LLC | | | 5,525 | | | | - | | | | - | | | | 5,525 | |
Change in payables for collateral under securities loaned and reverse repurchase agreements | | | 8,103 | | | | - | | | | - | | | | 8,103 | |
| | | | | | | | | | | | | | | | |
Net cash and cash equivalents used in financing activities | | | (18,840 | ) | | | - | | | | - | | | | (18,840 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Net increase in cash and cash equivalents(2) | | | 41,406 | | | | - | | | | - | | | | 41,406 | |
Cash and cash equivalents, beginning of year | | | 301,737 | | | | - | | | | - | | | | 301,737 | |
| | | | | | | | | | | | | | | | |
Cash and cash equivalents, end of period | | $ | 343,143 | | | $ | - | | | $ | - | | | $ | 343,143 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
-2 | Included in net decrease in cash and cash equivalents is interest received - $0; interest paid - $5; income taxes paid - $0; and income taxes received - $505. | | | | | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
CASH FLOWS FROM OPERATING | | | | | | | | | | | | | | | | |
ACTIVITIES |
Net income (loss) | | $ | (100 | ) | | $ | 18,273 | | | $ | 370 | | | $ | 18,543 | |
Adjustments to reconcile net income (loss) to net cash and cash equivalents provided by operating activities: | | | | | | | | | | | | | | | | |
Change in deferred policy acquisition costs | | | (614 | ) | | | - | | | | (170 | ) | | | (784 | ) |
Change in deferred sales inducements | | | (153 | ) | | | - | | | | - | | | | (153 | ) |
Change in value of business acquired | | | 1,152 | | | | - | | | | (100 | ) | | | 1,052 | |
Change in benefit reserves | | | (8,321 | ) | | | - | | | | (100 | ) | | | (8,421 | ) |
Change in income tax accruals | | | 18,778 | | | | (18,273 | ) | | | - | | | | 505 | |
Change in claims and claims settlement expenses | | | 3,462 | | | | - | | | | - | | | | 3,462 | |
Change in other operating assets and liabilities, net | | | (856 | ) | | | - | | | | - | | | | (856 | ) |
Change in checks not yet presented for payment | | | (1,177 | ) | | | - | | | | - | | | | (1,177 | ) |
Amortization of investments | | | 222 | | | | - | | | | - | | | | 222 | |
Interest credited to policyholder liabilities | | | 27,923 | | | | - | | | | - | | | | 27,923 | |
Net derivative losses | | | 51,993 | | | | - | | | | - | | | | 51,993 | |
Net realized investment gains | | | (1,003 | ) | | | - | | | | - | | | | (1,003 | ) |
| | | | | | | | | | | | | | | | |
Net cash and cash equivalents provided by operating activities | | | 91,306 | | | | - | | | | - | | | | 91,306 | |
| | | | | | | | | | | | | | | | |
| | | | |
CASH FLOWS FROM INVESTING | | | | | | | | | | | | | | | | |
ACTIVITIES |
Sales of available-for-sale securities | | | 47,612 | | | | - | | | | - | | | | 47,612 | |
Maturities of available-for-sale securities and mortgage loans | | | 116,153 | | | | - | | | | - | | | | 116,153 | |
Purchases of available-for-sale securities | | | (223,544 | ) | | | - | | | | - | | | | (223,544 | ) |
Purchases of limited partnerships | | | (25,000 | ) | | | - | | | | - | | | | (25,000 | ) |
Change in affiliated short-term note receivable | | | (50,000 | ) | | | - | | | | - | | | | (50,000 | ) |
Cash received in connection with derivatives | | | 3,871 | | | | - | | | | - | | | | 3,871 | |
Cash paid in connection with derivatives | | | (63,417 | ) | | | - | | | | - | | | | (63,417 | ) |
Policy loans on insurance contracts, net | | | 17,756 | | | | - | | | | - | | | | 17,756 | |
Net settlement on futures contracts | | | (4,784 | ) | | | - | | | | - | | | | (4,784 | ) |
Other | | | (170 | ) | | | - | | | | - | | | | (170 | ) |
| | | | | | | | | | | | | | | | |
Net cash and cash equivalents used in investing activities | | $ | (181,523 | ) | | $ | - | | | $ | - | | | $ | (181,523 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
CASH FLOWS FROM FINANCING | | | | | | | | | | | | | | | | |
ACTIVITIES |
Policyholder deposits | | $ | 9,968 | | | $ | - | | | $ | - | | | $ | 9,968 | |
Policyholder withdrawals | | | (70,277 | ) | | | - | | | | - | | | | (70,277 | ) |
Capital contributions from AEGON USA, LLC | | | 99,319 | | | | - | | | | - | | | | 99,319 | |
Change in payables for collateral under securities loaned and reverse repurchase agreements | | | (7,476 | ) | | | - | | | | - | | | | (7,476 | ) |
| | | | | | | | | | | | | | | | |
Net cash and cash equivalents provided by financing activities | | | 31,534 | | | | - | | | | - | | | | 31,534 | |
| | | | | | | | | | | | | | | | |
| | | | |
Net decrease in cash and cash equivalents(2) | | | (58,683 | ) | | | - | | | | - | | | | (58,683 | ) |
Cash and cash equivalents, beginning of year | | | 301,737 | | | | - | | | | - | | | | 301,737 | |
| | | | | | | | | | | | | | | | |
Cash and cash equivalents, end of period | | $ | 243,054 | | | $ | - | | | $ | - | | | $ | 243,054 | |
| | | | | | | | | | | | | | | | |
|
|
-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
-2 | Included in net decrease in cash and cash equivalents is interest received - $4; interest paid - $1; income taxes paid - $0; and income taxes received - $505. | | | | | | | | | | | | | | | |
|
|
|
|
| | | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, 2014 | |
(dollars in thousands) | | As Reported | | | Tax Valuation | | | Other | | | As Restated | |
Allowance | Adjustments(1) |
Restatement | |
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | (28,898 | ) | | $ | 69,962 | | | $ | 4,170 | | | $ | 45,234 | |
Adjustments to reconcile net income (loss) to net cash and cash equivalents provided by operating activities: | | | | | | | | | | | | | | | | |
Change in deferred policy acquisition costs | | | (3,264 | ) | | | - | | | | 1,730 | | | | (1,534 | ) |
Change in deferred sales inducements | | | (734 | ) | | | - | | | | - | | | | (734 | ) |
Change in value of business acquired | | | 8,029 | | | | - | | | | (2,100 | ) | | | 5,929 | |
Change in benefit reserves | | | 5,405 | | | | - | | | | (3,800 | ) | | | 1,605 | |
Change in income tax accruals | | | 70,467 | | | | (69,962 | ) | | | - | | | | 505 | |
Change in claims and claims settlement expenses | | | 9,563 | | | | - | | | | - | | | | 9,563 | |
Change in other operating assets and liabilities, net | | | 11,670 | | | | - | | | | - | | | | 11,670 | |
Change in checks not yet presented for payment | | | (3,216 | ) | | | - | | | | - | | | | (3,216 | ) |
Amortization of investments | | | 578 | | | | - | | | | - | | | | 578 | |
Interest credited to policyholder liabilities | | | 41,678 | | | | - | | | | - | | | | 41,678 | |
Net derivative losses | | | 44,789 | | | | - | | | | - | | | | 44,789 | |
Net realized investment gains | | | (2,293 | ) | | | - | | | | - | | | | (2,293 | ) |
| | | | | | | | | | | | | | | | |
Net cash and cash equivalents provided by operating activities | | | 153,774 | | | | - | | | | - | | | | 153,774 | |
| | | | | | | | | | | | | | | | |
| | | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | | | | |
Sales of available-for-sale securities and mortgage loans | | | 58,584 | | | | - | | | | - | | | | 58,584 | |
Maturities of available-for-sale securities and mortgage loans | | | 213,784 | | | | - | | | | - | | | | 213,784 | |
Purchases of available-for-sale securities and mortgage loans | | | (344,445 | ) | | | - | | | | - | | | | (344,445 | ) |
Sales of limited partnerships | | | 808 | | | | - | | | | - | | | | 808 | |
Purchases of limited partnerships | | | (25,000 | ) | | | - | | | | - | | | | (25,000 | ) |
Change in affiliated short-term note receivable | | | (50,000 | ) | | | - | | | | - | | | | (50,000 | ) |
Cash received in connection with derivatives | | | 8,469 | | | | - | | | | - | | | | 8,469 | |
Cash paid in connection with derivatives | | | (97,528 | ) | | | - | | | | - | | | | (97,528 | ) |
Policy loans on insurance contracts, net | | | 27,486 | | | | - | | | | - | | | | 27,486 | |
Net settlement on futures contracts | | | (5,760 | ) | | | - | | | | - | | | | (5,760 | ) |
Other | | | (584 | ) | | | - | | | | - | | | | (584 | ) |
| | | | | | | | | | | | | | | | |
Net cash and cash equivalents used in investing activities | | $ | (214,186 | ) | | $ | - | | | $ | - | | | $ | (214,186 | ) |
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CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | | | | |
Policyholder deposits | | $ | 13,606 | | | $ | - | | | $ | - | | | $ | 13,606 | |
Policyholder withdrawals | | | (105,881 | ) | | | - | | | | - | | | | (105,881 | ) |
Capital contributions from AEGON USA, LLC | | | 132,222 | | | | - | | | | - | | | | 132,222 | |
Change in payables for collateral under securities loaned, derivatives and reverse repurchase agreements | | | 14,380 | | | | - | | | | - | | | | 14,380 | |
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Net cash and cash equivalents provided by financing activities | | | 54,327 | | | | - | | | | - | | | | 54,327 | |
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Net decrease in cash and cash equivalents(2) | | | (6,085 | ) | | | - | | | | - | | | | (6,085 | ) |
Cash and cash equivalents, beginning of year | | | 301,737 | | | | - | | | | - | | | | 301,737 | |
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Cash and cash equivalents, end of period | | $ | 295,652 | | | $ | - | | | $ | - | | | $ | 295,652 | |
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-1 | Consists of out-of-period errors and reclassifications. | | | | | | | | | | | | | | | |
-2 | Included in net decrease in cash and cash equivalents is interest received - $18; interest paid - $2; income taxes paid - $0; and income taxes received - $505. | | | | | | | | | | | | | | | |