Merrill Lynch Consults Annuity - Annuities – Transamerica...Merrill Lynch Consults Annuity ® A...

May 2014

Merrill Lynch Consults Annuity® A flexible premium variable annuity

Transamerica Advisors Life Insurance Company of New York Underlying Fund Prospectuses and Financial Statements

Variable annuities issued by Transamerica Advisors Life Insurance Company of New York in Harrison, New York. Annuities are underwritten and distributed by Transamerica Capital, Inc.

ML Consults (NY) Summary Pro 2014

Investment Options Table of Contents

Note: You are receiving Summary Prospectuses for your investment options. If you receive a summary prospectus and desire a full statutory fund prospectus, please follow the instructions on the front cover of your respective summary prospectus.

BlackRock Variable Series Funds, Inc.

BlackRock Money Market V.I. Fund .................................................................................................................BRMM-1 Transamerica Series Trust

Transamerica Aegon U.S. Government Securities VP ....................................................................................TAEUSG-1 Transamerica AllianceBernstein Dynamic Allocation VP ..............................................................................TABDA-1 Transamerica Barrow Hanley Dividend Focused VP .....................................................................................TBHDF-1 Transamerica BlackRock Tactical Allocation VP ............................................................................................TBRTA-1 Transamerica JPMorgan Enhanced Index VP .................................................................................................TJPEI-1 Transamerica JPMorgan Mid Cap Value VP ....................................................................................................TJPMCV-1 Transamerica Jennison Growth VP ...................................................................................................................TJG-1 Transamerica MFS International Equity VP ....................................................................................................TMFSIE-1 Transamerica Morgan Stanley Mid-Cap Growth VP ......................................................................................TMSMCG-1 Transamerica PIMCO Total Return VP ............................................................................................................TPTR-1 Transamerica Systematic Small/Mid Cap Value VP .......................................................................................TSSMCV-1 Transamerica T. Rowe Price Small Cap VP ......................................................................................................TTRPSC-1 Transamerica TS&W International Equity VP .................................................................................................TTSW-1 Transamerica Torray Concentrated Growth VP ..............................................................................................TTCG-1 Transamerica WMC Diversified Growth VP ...................................................................................................TWMCDG-1

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MAY 1, 2014

PROSPECTUS

BlackRock Variable Series Funds, Inc.

c BlackRock Money Market V.I. Fund (Class I)

This Prospectus contains information you should know before investing, including information about risks. Please read itbefore you invest and keep it for future reference.

The Securities and Exchange Commission has not approved or disapproved these securities or passed upon theadequacy of this Prospectus. Any representation to the contrary is a criminal offense.

Not FDIC Insured • No Bank Guarantee • May Lose Value

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Table of Contents

BlackRock Money Market V.I. Fund

Fund Overview Key facts and details about the Fund listed in this prospectus, includinginvestment objectives, principal investment strategies, principal risk factors,fees and expense information, and historical performance informationInvestment Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Fees and Expenses of the Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Principal Investment Strategies of the Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Principal Risks of Investing in the Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Performance Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Investment Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Portfolio Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Purchase and Sale of Fund Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Tax Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Payments to Broker/Dealers and Other Financial Intermediaries . . . . . . . . . . 7

Details About the Fund How the Fund Invests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Investment Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Account Information The Insurance Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-2How to Buy and Sell Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-3

Management of the Funds Information about BlackRock and the Portfolio ManagersBlackRock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-5Portfolio Manager Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-11Conflicts of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-16Valuation of Fund Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-17Dividends and Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-18

General Information Shareholder Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-20Certain Fund Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-20Statement of Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-20

Glossary Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-21

For More Information Fund and Service Providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Back CoverAdditional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Back Cover

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Fund Overview

Key Facts About BlackRock Money Market V.I. Fund

Investment Objective

The investment objective of BlackRock Money Market V.I. Fund (the “Fund”) is to seek to preserve capital, maintainliquidity, and achieve the highest possible current income consistent with the foregoing.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. The expensesbelow do not include separate account fees and expenses, and would be higher if these fees and expenses wereincluded. Please refer to your variable annuity or insurance contract (the “Contract”) prospectus for information on theseparate account fees and expenses associated with your Contract.

Shareholder Fees (fees paid directly from your investment)The Fund is not subject to any shareholder fees.

Annual Fund Operating Expenses(expenses that you pay each year as a percentage of the value of your investment)

Class IShares

Management Fees 0.50%

Distribution and/or Service (12b-1) Fees None

Other Expenses 0.13%

Total Annual Fund Operating Expenses 0.63%

Fee Waivers and/or Expense Reimbursements1 (0.05)%

Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements1 0.58%1 As described in the “Management of the Funds” section of the Fund’s prospectus, BlackRock has contractually agreed to waive and/or

reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excludingDividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 1.25% (for Class I Shares) ofaverage daily net assets until May 1, 2015. BlackRock has also contractually agreed to reimburse fees in order to limit certain operational andrecordkeeping fees to 0.02% (for Class I Shares) of average daily net assets until May 1, 2015. Each of these contractual agreements may beterminated upon 90 days’ notice by a majority of the non-interested directors of the Fund or by a vote of a majority of the outstanding votingsecurities of the Fund.

Example:This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutualfunds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all ofyour shares at the end of those periods. The Example also assumes that your investment has a 5% return each year andthat the Fund’s operating expenses remain the same. The Example does not reflect charges imposed by the Contract. Seethe Contract prospectus for information on such charges. Although your actual costs may be higher or lower, based onthese assumptions and the net expenses shown in the fee table, your costs would be:

1 Year 3 Years 5 Years 10 Years

Class I Shares $59 $197 $346 $782

Principal Investment Strategies of the Fund

The Fund seeks to produce current income while attempting to maintain a share value of $1.00.

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The Fund invests in short-term U.S. money market instruments and repurchase agreements. These instruments aregenerally debt securities that mature within 13 months (with certain exceptions). Other than U.S. government and U.S.government agency securities, the Fund only invests in money market instruments of issuers with one of the twohighest short-term ratings from a nationally recognized credit rating organization or unrated instruments that, in theopinion of Fund management, are of similar credit quality.

The money market instruments in which the Fund may invest include: U.S. Government Securities, U.S. GovernmentAgency Securities, Bank Money Instruments, Commercial Paper, Short-Term Obligations, Floating Rate Obligations,Insurance Company Obligations, Master Notes and other eligible investments.

The Fund may invest in securities issued by U.S. Government agencies, instrumentalities of the U.S. Government, andU.S. Government sponsored enterprises. U.S. Government agencies are entities that are part of or sponsored by theFederal government, such as the Government National Mortgage Association (“Ginnie Mae”), the Tennessee ValleyAuthority or the Federal Housing Administration. Instrumentalities of the U.S. Government are supranational entitiessponsored by the United States. U.S. Government sponsored enterprises are private corporations sponsored by theFederal government that have the legal status of government agencies, such as Fannie Mae and Freddie Mac. Certainsecurities, such as those issued by Fannie Mae and Freddie Mac, are not guaranteed by the U.S. Government orbacked by the full faith and credit of the United States.

Principal Risks of Investing in the Fund

Risk is inherent in all investing. The value of your investment in the Fund, as well as the amount of return you receiveon your investment, may fluctuate significantly from day to day and over time. You may lose part or all of yourinvestment in the Fund or your investment may not perform as well as other similar investments. An investment in theFund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.Although the Fund seeks to preserve the value of an investment at $1.00 per share, it is possible to lose money byinvesting in the Fund. The following is a summary description of principal risks of investing in the Fund.

j Credit Risk — Credit risk refers to the possibility that the issuer of a security will not be able to make principal andinterest payments when due. Changes in an issuer’s credit rating or the market’s perception of an issuer’screditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit riskdepends on both the financial condition of the issuer and the terms of the obligation.

j Extension Risk — When interest rates rise, certain obligations will be paid off by the obligor more slowly thananticipated, causing the value of these securities to fall.

j Interest Rate Risk — Interest rate risk is the risk that the value of a debt security may fall when interest rates rise.In general, the market price of debt securities with longer maturities will go up or down more in response to changesin interest rates than the market price of shorter-term securities.

Additionally, securities issued or guaranteed by the U.S. Government, its agencies, instrumentalities and sponsoredenterprises have historically involved little risk of loss of principal if held to maturity. However, due to fluctuations ininterest rates, the market value of such securities may vary during the period shareholders own shares of the Fund.

j Market Risk and Selection Risk — Market risk is the risk that one or more markets in which the Fund invests willgo down in value, including the possibility that the markets will go down sharply and unpredictably. Selection risk isthe risk that the securities selected by Fund management will underperform the markets, the relevant indices or thesecurities selected by other funds with similar investment objectives and investment strategies. This means youmay lose money.

j Mortgage- and Asset-Backed Securities Risks — Mortgage- and asset-backed securities represent interests in“pools” of mortgages or other assets, including consumer loans or receivables held in trust. Mortgage- andasset-backed securities are subject to credit, interest rate, prepayment and extension risks. These securities alsoare subject to risk of default on the underlying mortgage or asset, particularly during periods of economic downturn.Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value ofcertain mortgage-backed securities.

j Prepayment Risk — When interest rates fall, certain obligations will be paid off by the obligor more quickly thanoriginally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.

j Regulatory Risk — In 2010, the Securities and Exchange Commission (the “SEC”) adopted amendments to moneymarket fund regulations, which imposed new liquidity, credit quality, and maturity requirements on all money marketfunds. In addition, in June 2013, the SEC proposed additional reforms to money market fund regulation, which, ifadopted, may affect the Fund’s operations and/or return potential.

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j Repurchase Agreement Risk — The Fund may enter into repurchase agreements. Under a repurchase agreement,the seller agrees to repurchase a security at a mutually agreed-upon time and price. If the seller in a repurchaseagreement transaction defaults on its obligation under the agreement, the Fund may suffer delays and incur costsor lose money in exercising its rights under the agreement.

j U.S. Government Issuer Risk — Treasury obligations may differ in their interest rates, maturities, times of issuanceand other characteristics. Obligations of U.S. Government agencies and authorities are supported by varyingdegrees of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance canbe given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligatedby law to do so.

j U.S. Government Mortgage-Related Securities Risk — There are a number of important differences among theagencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among thesecurities that they issue. Mortgage-related securities guaranteed by the Government National MortgageAssociation (“GNMA” or “Ginnie Mae”) are guaranteed as to the timely payment of principal and interest byGNMA and such guarantee is backed by the full faith and credit of the United States. GNMA securities also aresupported by the right of GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee.Mortgage-related securities issued by Fannie Mae or Freddie Mac are solely the obligations of Fannie Mae orFreddie Mac, as the case may be, and are not backed by or entitled to the full faith and credit of the United Statesbut are supported by the right of the issuer to borrow from the Treasury.

j When-Issued and Delayed Delivery Securities and Forward Commitments Risks — When-issued and delayeddelivery securities and forward commitments involve the risk that the security the Fund buys will lose value prior toits delivery. There also is the risk that the security will not be issued or that the other party to the transaction willnot meet its obligation. If this occurs, the Fund may lose both the investment opportunity for the assets it set asideto pay for the security and any gain in the security’s price.

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Performance Information

The information shows you how the Fund’s performance has varied year by year and provides some indication of therisks of investing in the Fund. As with all such investments, past performance is not an indication of future results.Separate account fees and expenses are not reflected in the bar chart. If they were, returns would be less than thoseshown. If the Fund’s investment manager and its affiliates had not waived or reimbursed certain Fund expenses duringthese periods, the Fund’s returns would have been lower.

Class I SharesANNUAL TOTAL RETURNS

BlackRock Money Market V.I. FundAs of 12/31

0%

5%

10%

2013201220112010200920082007200620052004

0.92%

2.66%

4.48%4.86%

2.53%

0.16% 0.00% 0.00% 0.00% 0.00%

During the ten-year period shown in the bar chart, the highest return for a quarter was 1.22% (quarter endedSeptember 30, 2007) and the lowest return for a quarter was 0.00% (quarter ended December 31, 2013). The year todate return as of March 31, 2014 was 0.00%.

As of 12/31/13Average Annual Total Returns 1 Year 5 Years 10 Years

BlackRock Money Market V.I. Fund: Class I Shares 0.00% 0.03% 1.55%

Investment Manager

The Fund’s investment manager is BlackRock Advisors, LLC (“BlackRock”).

Portfolio Managers

NamePortfolio Managerof the Fund Since Title

Thomas Kolimago, CFA 2006 Managing Director of BlackRock, Inc.

Coleen Gasiewski 2009 Director of BlackRock, Inc.

Purchase and Sale of Fund Shares

Shares of the Fund currently are sold either directly or indirectly (through other variable insurance funds) to separateaccounts of insurance companies (the “Insurance Companies”) and certain accounts administered by the InsuranceCompanies (the “Accounts”) to fund benefits under the Contracts issued by the Insurance Companies. Shares of theFund may be purchased or sold each day the New York Stock Exchange (“NYSE”) is open.

The Fund does not have any initial or subsequent investment minimums. However, your Contract may require certaininvestment minimums. See your Contract prospectus for more information.

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Tax Information

Distributions made by the Fund to an Account, and exchanges and redemptions of Fund shares made by an Account,ordinarily do not cause the corresponding Contract holder to recognize income or gain for Federal income tax purposes.See the Contract prospectus for information regarding the Federal income tax treatment of the distributions toAccounts and the holders of the Contracts.

Payments to Broker/Dealers and Other Financial Intermediaries

BlackRock and its affiliates may make payments relating to distribution and sales support activities to the InsuranceCompanies and other financial intermediaries for the sale of Fund shares and related services. These payments maycreate a conflict of interest by influencing the Insurance Company or other financial intermediary and your individualfinancial professional to recommend the Fund over another investment. Visit your Insurance Company’s website, whichmay have more information.

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Details About the FundIncluded in this prospectus are sections that tell you about buying and selling shares, management information,shareholder features of the Fund and your rights as a shareholder.

How the Fund Invests

Investment ObjectiveThe investment objective of the Fund is to seek to preserve capital, maintain liquidity, and achieve the highest possiblecurrent income consistent with the foregoing.

Should the Board of Directors determine that the investment objective of the Fund should be changed, shareholders ofthe Fund will be given notice before any such change is effective. However, such change can be effected withoutshareholder approval.

Investment ProcessThe Fund is a money market fund managed pursuant to Rule 2a-7 under the Investment Company Act of 1940 (the“Investment Company Act”).

j The Fund seeks to maintain a net asset value of $1.00 per share.

j The Fund will maintain a dollar-weighted average maturity of 60 days or less and a dollar-weighted average life of120 days or less. The average maturity of the Fund is the average amount of time until the organizations thatissued the debt securities in the Fund’s portfolio must pay off the principal amount of the debt. “Dollar-weighted”means the larger the dollar value of a debt security in the Fund, the more weight it gets in calculating this average.

j Pursuant to Rule 2a-7 the Fund is subject to a “general liquidity requirement” that requires that the Fund hold securitiesthat are sufficiently liquid to meet reasonably foreseeable shareholder redemptions in light of its obligations underSection 22(e) of the Investment Company Act regarding share redemptions and any commitments the Fund has made toshareholders. To comply with this general liquidity requirement, BlackRock must consider factors that could affect theFund’s liquidity needs, including characteristics of the Fund’s investors and their likely redemptions. Depending upon thevolatility of its cash flows (particularly shareholder redemptions), this may require the Fund to maintain greater liquiditythan would be required by the daily and weekly minimum liquidity requirements discussed below.

j The Fund will not acquire any illiquid security (i.e., securities that cannot be sold or disposed of in the ordinarycourse of business within seven days at approximately the value ascribed to them by the Fund) if, immediatelyfollowing such purchase, more than 5% of the Fund’s total assets are invested in illiquid securities. The Fund willnot acquire any security other than a daily liquid asset unless, immediately following such purchase, at least 10% ofits total assets would be invested in daily liquid assets. The Fund will not acquire any security other than a weeklyliquid asset unless, immediately following such purchase, at least 30% of its total assets would be invested inweekly liquid assets. “Daily liquid assets” include (i) cash; (ii) direct obligations of the U.S. Government; and (iii)securities that will mature or are subject to a demand feature that is exercisable and payable within one businessday. “Weekly liquid assets” include (i) and (ii) above as well as (iii) Government securities issued by a personcontrolled or supervised by and acting as an instrumentality of the U.S. Government pursuant to authority grantedby the U.S. Congress, that are issued at a discount to the principal amount to be repaid at maturity and have aremaining maturity of 60 days or less; and (iv) securities that will mature or are subject to a demand feature that isexercisable and payable within five business days.

j The Board of Directors has designated nationally recognized statistical rating organizations (“Designated NRSROs”)whose short-term credit ratings the Fund would look to in determining whether a security is an eligible security forinvestment under Rule 2a-7. BlackRock may, but is not required to, consider (or monitor) the ratings of othernationally recognized statistical rating organizations in making such determinations.

Principal Investment StrategiesThe Fund seeks to produce current income while attempting to maintain a share value of $1.00.

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The Fund invests in short-term U.S. money market instruments and repurchase agreements. These instruments aregenerally debt securities that mature within 13 months (with certain exceptions). Other than U.S. Government and U.S.Government agency securities, the Fund only invests in money market instruments of issuers with one of the twohighest short-term ratings from a nationally recognized credit rating organization or unrated instruments that, in theopinion of Fund management, are of similar credit quality.

The money market instruments in which the Fund may invest include:

j Bank Money Instruments — Obligations of commercial banks or other depository institutions, such as certificatesof deposit, time deposits, bank notes and bankers’ acceptances.

j Commercial Paper — Obligations, usually of nine months or less, issued by corporations and other businesses forshort-term funding.

j Floating Rate Obligations — Obligations of government agencies, corporations, depository institutions or other issuerswhich periodically reset their interest rate to reflect a current market rate, such as the federal funds rate or a bank’sprime rate, or the level of an interest rate index, such as LIBOR (a well-known short-term interest rate index).

j Insurance Company Obligations — Short-term funding agreements and guaranteed insurance contracts with fixed orfloating interest rates.

j Master Notes — Variable principal amount demand instruments issued by securities firms and other corporate issuers.

j Other Eligible Investments — Other money market instruments permitted by SEC rules governing money market funds.

j Repurchase Agreements — Repurchase agreements are transactions in which the Fund purchases a class ofsecurities with the obligation to resell the securities shortly thereafter at a specified price which reflects interestpayable to the Fund. The Fund may engage in repurchase agreements involving any of the above instruments(without regard to the instrument’s maturity).

j Short-Term Obligations — Corporate debt and asset-backed securities with a period of 397 days or less remainingto maturity.

j U.S. Government Securities — Debt securities issued or guaranteed as to principal and interest by the U.S.government that are supported by the full faith and credit of the United States.

j U.S. Government Agency Securities — Debt securities issued or guaranteed as to principal and interest by U.S.Government agencies, U.S. Government sponsored enterprises and government instrumentalities. Agency securitiesmay be supported only by the credit of the issuer, not the full faith and credit of the United States.

The Fund may invest in securities issued by U.S. Government agencies, instrumentalities of the U.S. Government,and U.S. Government sponsored enterprises, such as Fannie Mae and Freddie Mac. Certain securities, such asthose issued by Fannie Mae and Freddie Mac, are not guaranteed by the U.S. government or backed by the full faithand credit of the United States.

j When-Issued and Delayed Delivery Securities and Forward Commitments — The purchase or sale of securities ona when-issued basis or on a delayed delivery basis or through a forward commitment involves the purchase or saleof securities by the Fund at an established price with payment and delivery taking place in the future. The Fundenters into these transactions to obtain what is considered an advantageous price to the Fund at the time ofentering into the transaction.

Fund management will vary the types of money market instruments in the Fund’s portfolio, as well as the Fund’saverage maturity, in response to its assessment of the relative value of different securities and future short-terminterest rates.

The Fund will only invest in money market obligations of U.S. issuers. For this purpose, the Fund may consider anobligation of a foreign subsidiary of a U.S. company to be an obligation of a U.S. issuer if the obligation is fullyguaranteed by the U.S. parent company.

Other StrategiesIn addition to the principal strategies discussed above, the Fund may also invest or engage in the followinginvestments/strategies:

j Borrowing — The Fund may borrow for temporary or emergency purposes, including to meet redemptions, for thepayment of dividends, for share repurchases or for the clearance of transactions. Borrowing may exaggeratechanges in the net asset value of Fund shares and in the return on the Fund’s portfolio. Borrowing will cost theFund interest expense and other fees. The costs of borrowing may reduce the Fund’s return. Certain derivativesecurities that the Fund may buy or other techniques that the Fund may use may create leverage, including, but notlimited to, when issued securities, forward commitments and futures contracts and options.

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j Illiquid/Restricted Securities — The Fund may invest up to 5% of its net assets in illiquid securities that it cannotsell in the ordinary course within seven days at approximately current value. Restricted securities are securities thatcannot be offered for public resale unless registered under the applicable securities laws or that have a contractualrestriction that prohibits or limits their resale, such as Rule 144A securities. They may include private placementsecurities that have not been registered under the applicable securities laws. Restricted securities may not be listedon an exchange and may have no active trading market. Rule 144A securities are restricted securities that can beresold to qualified institutional buyers but not to the general public.

j Reverse Repurchase Agreements — Reverse repurchase agreements are transactions in which the Fund sells asecurity with the obligation to repurchase the security shortly thereafter at a specified price which reflects apayment by the Fund. The Fund profits from entering into a reverse repurchase agreement by reinvesting theproceeds of the sale at a higher return than it has to pay to repurchase its security.

j Securities Lending — The Fund may lend securities with a value up to 331⁄3% of its total assets to financialinstitutions that provide cash or securities issued or guaranteed by the U.S. Government as collateral.

ABOUT THE PORTFOLIO MANAGEMENT OF THE FUND

The Fund is managed by Thomas Kolimago, CFA and Coleen Gasiewski. Mr. Kolimago and Ms. Gasiewski are jointlyand primarily responsible for the day-to-day management of the Fund. Please see “Management of the Funds —Portfolio Manager Information” for additional information on the portfolio management team.

Investment Risks

This section contains a discussion of certain risks of investing in the Fund. The “Investment Objectives and Policies”section in the Statement of Additional Information (“SAI”) also includes more information about the Fund, itsinvestments and the related risks. An investment in the Fund is not insured or guaranteed by the Federal DepositInsurance Corporation or any other government agency. Although the Fund seeks to preserve the value of yourinvestment at $1.00 per share, it is possible to lose money by investing in the Fund. As with any fund, there can be noguarantee that the Fund will meet its investment objective or that the Fund’s performance will be positive for anyperiod of time.

Principal Risks of Investing in the Fund:

Credit Risk — Credit risk refers to the possibility that the issuer of a security will not be able to make principal andinterest payments when due. Changes in an issuer’s credit rating or the market’s perception of an issuer’screditworthiness may also affect the value of the Fund’s investment in that issuer. The degree of credit risk dependson both the financial condition of the issuer and the terms of the obligation.

Extension Risk — When interest rates rise, certain obligations will be paid off by the obligor more slowly thananticipated, causing the value of these securities to fall.

Interest Rate Risk — Interest rate risk is the risk that the value of a debt security may fall when interest rates rise. Ingeneral, the market price of debt securities with longer maturities will go up or down more in response to changes ininterest rates than the market price of shorter-term securities.

Additionally, securities issued or guaranteed by the U.S. Government, its agencies, instrumentalities and sponsoredenterprises have historically involved little risk of loss of principal if held to maturity. However, due to fluctuations ininterest rates, the market value of such securities may vary during the period shareholders own shares of the Fund.

Market Risk and Selection Risk — Market risk is the risk that one or more markets in which the Fund invests will go downin value, including the possibility that the markets will go down sharply and unpredictably. Selection risk is the risk that thesecurities selected by Fund management will underperform the markets, the relevant indices or the securities selected byother funds with similar investment objectives and investment strategies. This means you may lose money.

Prepayment Risk — When interest rates fall, certain obligations will be paid off by the obligor more quickly thanoriginally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.

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Mortgage- and Asset-Backed Securities Risks — Mortgage-backed securities (residential and commercial) andasset-backed securities represent interests in “pools” of mortgages or other assets, including consumer loans orreceivables held in trust. Although asset-backed and commercial mortgage-backed securities (“CMBS”) generallyexperience less prepayment than residential mortgage-backed securities, mortgage-backed and asset-backedsecurities, like traditional fixed-income securities, are subject to credit, interest rate, prepayment and extension risks.

Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value ofcertain mortgage-backed securities. The Fund’s investments in asset-backed securities are subject to risks similar tothose associated with mortgage-related securities, as well as additional risks associated with the nature of the assetsand the servicing of those assets. These securities also are subject to the risk of default on the underlying mortgageor assets, particularly during periods of economic downturn. Certain CMBS are issued in several classes with differentlevels of yield and credit protection. The Fund’s investments in CMBS with several classes may be in the lower classesthat have greater risks than the higher classes, including greater interest rate, credit and prepayment risks.

Mortgage-backed securities may be either pass-through securities or collateralized mortgage obligations (“CMOs”).Pass-through securities represent a right to receive principal and interest payments collected on a pool of mortgages,which are passed through to security holders. CMOs are created by dividing the principal and interest paymentscollected on a pool of mortgages into several revenue streams (tranches) with different priority rights to portions of theunderlying mortgage payments. Certain CMO tranches may represent a right to receive interest only (“IOs”), principalonly (“POs”) or an amount that remains after floating-rate tranches are paid (an inverse floater). These securities arefrequently referred to as “mortgage derivatives” and may be extremely sensitive to changes in interest rates. Interestrates on inverse floaters, for example, vary inversely with a short-term floating rate (which may be reset periodically).Interest rates on inverse floaters will decrease when short-term rates increase, and will increase when short-termrates decrease. These securities have the effect of providing a degree of investment leverage. In response to changesin market interest rates or other market conditions, the value of an inverse floater may increase or decrease at amultiple of the increase or decrease in the value of the underlying securities. If the Fund invests in CMO tranches(including CMO tranches issued by government agencies) and interest rates move in a manner not anticipated by Fundmanagement, it is possible that the Fund could lose all or substantially all of its investment. Certain mortgage-backedsecurities in which the Fund may invest may also provide a degree of investment leverage, which could cause the Fundto lose all or substantially all of its investment.

The mortgage market in the United States has experienced difficulties that may adversely affect the performance andmarket value of certain of the Fund’s mortgage-related investments. Delinquencies and losses on mortgage loans (includingsubprime and second-lien mortgage loans) generally have increased and may continue to increase, and a decline in orflattening of real-estate values (as has been experienced and may continue to be experienced in many housing markets)may exacerbate such delinquencies and losses. Also, a number of mortgage loan originators have experienced seriousfinancial difficulties or bankruptcy. Reduced investor demand for mortgage loans and mortgage-related securities andincreased investor yield requirements have caused limited liquidity in the secondary market for mortgage-related securities,which can adversely affect the market value of mortgage-related securities. It is possible that such limited liquidity in suchsecondary markets could continue or worsen.

Asset-backed securities entail certain risks not presented by mortgage-backed securities, including the risk that in certainstates it may be difficult to perfect the liens securing the collateral backing certain asset-backed securities. In addition,certain asset-backed securities are based on loans that are unsecured, which means that there is no collateral to seize ifthe underlying borrower defaults.

Regulatory Risk — In 2010, the SEC adopted amendments to money market fund regulations, which imposed newliquidity, credit quality, and maturity requirements on all money market funds. In addition, in June 2013, the SECproposed additional reforms to money market fund regulation, which, if adopted, may affect the Fund’s operationsand/or return potential.

Repurchase Agreement Risk — The Fund may enter into repurchase agreements. Under a repurchase agreement, theseller agrees to repurchase a security at a mutually agreed-upon time and price. If the seller in a repurchaseagreement transaction defaults on its obligation under the agreement, the Fund may suffer delays and incur costs orlose money in exercising its rights under the agreement.

U.S. Government Issuer Risk — Treasury obligations may differ in their interest rates, maturities, times of issuance andother characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees of creditbut generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given that the U.S.Government will provide financial support to its agencies and authorities if it is not obligated by law to do so.

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U.S. Government Mortgage-Related Securities Risk — There are a number of important differences among theagencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among thesecurities that they issue. Mortgage-related securities guaranteed by the Government National Mortgage Association(“GNMA” or “Ginnie Mae”) are guaranteed as to the timely payment of principal and interest by GNMA and suchguarantee is backed by the full faith and credit of the United States. GNMA securities also are supported by the rightof GNMA to borrow funds from the U.S. Treasury to make payments under its guarantee. Mortgage-related securitiesissued by Fannie Mae or Freddie Mac are solely the obligations of Fannie Mae or Freddie Mac, as the case may be,and are not backed by or entitled to the full faith and credit of the United States but are supported by the right of theissuer to borrow from the Treasury.

When-Issued and Delayed Delivery Securities and Forward Commitments Risks — When-issued and delayed deliverysecurities and forward commitments involve the risk that the security the Fund buys will lose value prior to its delivery.There also is the risk that the security will not be issued or that the other party to the transaction will not meet itsobligation. If this occurs, the Fund may lose both the investment opportunity for the assets it set aside to pay for thesecurity and any gain in the security’s price.

The Fund may also be subject to certain other risks associated with its investments and investment strategies,including:Borrowing Risk — Borrowing may exaggerate changes in the net asset value of Fund shares and in the return on theFund’s portfolio. Borrowing will cost the Fund interest expense and other fees. The costs of borrowing may reduce theFund’s return. Borrowing may cause the Fund to liquidate positions when it may not be advantageous to do so tosatisfy its obligations.

Expense Risk — Fund expenses are subject to a variety of factors, including fluctuations in the Fund’s net assets.Accordingly, actual expenses may be greater or less than those indicated. For example, to the extent that the Fund’s netassets decrease due to market declines or redemptions, the Fund’s expenses will increase as a percentage of Fund netassets. During periods of high market volatility, these increases in the Fund’s expense ratio could be significant.

Liquidity Risk — Liquidity risk exists when particular investments are difficult to purchase or sell. The Fund’sinvestments in illiquid securities may reduce the returns of the Fund because it may be difficult to sell the illiquidsecurities at an advantageous time or price. To the extent that the Fund’s principal investment strategies involvederivatives or securities with substantial market and/or credit risk, the Fund will tend to have the greatest exposure toliquidity risk. Liquid investments may become illiquid after purchase by the Fund, particularly during periods of marketturmoil. Illiquid investments may be harder to value, especially in changing markets, and if the Fund is forced to sellthese investments to meet redemption requests or for other cash needs, the Fund may suffer a loss. In addition, whenthere is illiquidity in the market for certain securities, the Fund, due to limitations on illiquid investments, may besubject to purchase and sale restrictions.

Reverse Repurchase Agreements Risk — Reverse repurchase agreements involve the sale of securities held by theFund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverserepurchase agreements involve the risk that the other party may fail to return the securities in a timely manner or atall. The Fund could lose money if it is unable to recover the securities and the value of the collateral held by the Fund,including the value of the investments made with cash collateral, is less than the value of securities. These eventscould also trigger adverse tax consequences to the Fund.

Securities Lending Risk — Securities lending involves the risk that the borrower may fail to return the securities in a timelymanner or at all. As a result, the Fund may lose money and there may be a delay in recovering the loaned securities. TheFund could also lose money if it does not recover the securities and/or the value of the collateral falls, including the value ofinvestments made with cash collateral. These events could trigger adverse tax consequences for the Fund.

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Financial Highlights

The Financial Highlights table is intended to help you understand the Fund’s financial performance for the periodsshown. Certain information reflects the financial results for a single Fund share. The total returns in the tablerepresent the rate that an investor would have earned or lost on an investment in the Fund (assuming reinvestment ofall dividends and/or distributions). The information has been audited by Deloitte & Touche LLP, whose report, alongwith the Fund’s financial statements, is included in the Fund’s Annual Report, which is available upon request.

Class I

Year Ended December 31,

2013 2012 2011 2010 2009

Per Share Operating Performance

Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00

Net investment income 0.00001 0.00001 0.00001 0.00001 0.0014

Net realized and unrealized gain 0.00001 0.00001 0.00001 0.00001 0.0001

Net increase from investment operations 0.0000 0.0000 0.0000 0.0000 0.0015

Dividends and distributions from:2Net investment income (0.0000)3 (0.0000)3 (0.0000)3 (0.0000)3 (0.0014)Net realized gains (0.0000)3 (0.0000)3 (0.0000)3 (0.0000)3 (0.0001)

Total dividends and distributions (0.0000) (0.0000) (0.0000) (0.0000) (0.0015)

Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00

Total Investment Return4

Based on net asset value 0.00% 0.00% 0.00% 0.00% 0.16%

Ratios to Average Net Assets

Total expenses 0.63% 0.61% 0.58% 0.58% 0.62%

Total expenses after fees waived and/or reimbursed 0.20% 0.25% 0.24% 0.30% 0.48%

Net investment income 0.00% 0.00% 0.00% 0.00% 0.15%

Supplemental Data

Net assets, end of year (000) $179,570 $198,888 $235,527 $236,788 $ 307,482

1 Amount is less than $0.00005 per share.2 Determined in accordance with federal income tax regulations.3 Amount is greater than $(0.00005) per share.4 Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of dividends and distributions.

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Other Important Information

BlackRock Variable Series FundsClass I Shares

Account Information The Insurance Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-2How to Buy and Sell Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-3

Management of the Funds Information about BlackRock and the Portfolio ManagersBlackRock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-5Portfolio Manager Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-11Conflicts of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-16Valuation of Fund Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-17Dividends and Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-18

General Information Shareholder Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-20Certain Fund Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-20Statement of Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-20

Glossary Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-21

For More Information Funds and Service Providers . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Back CoverAdditional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Back Cover

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Account Information

The Insurance Companies

Shares of the BlackRock Basic Value V.I. Fund, the BlackRock Capital Appreciation V.I. Fund, the BlackRock Equity DividendV.I. Fund, the BlackRock Global Allocation V.I. Fund, the BlackRock Global Opportunities V.I. Fund, the BlackRock High YieldV.I. Fund, the BlackRock International V.I. Fund, the BlackRock Large Cap Core V.I. Fund, the BlackRock Large Cap GrowthV.I. Fund, the BlackRock Large Cap Value V.I. Fund, the BlackRock Managed Volatility V.I. Fund, the BlackRock Money MarketV.I. Fund, the BlackRock S&P 500 Index V.I. Fund, the BlackRock Total Return V.I. Fund, the BlackRock U.S. GovernmentBond V.I. Fund and the BlackRock Value Opportunities V.I. Fund (each a “Fund,” and collectively, the “Funds”) are sold toseparate accounts of insurance companies (the “Insurance Companies”) either directly or indirectly (through other variableinsurance funds) to fund certain variable life insurance contracts and/or variable annuities (the “Contracts”) issued by theInsurance Companies.

Shares of the Funds are owned by the Insurance Companies, not Contract owners. A Contract owner has no directinterest in the shares of a Fund, but only in the Contract. A Contract is described in the prospectus for that Contract.That prospectus describes the relationship between changes in the value of shares of a Fund, and the benefitsprovided under a Contract. The prospectus for a Contract also describes various fees payable to the InsuranceCompany and charges to the separate account made by the Insurance Company with respect to the Contract. Becauseshares of the Funds will be sold only to the Insurance Companies for the separate accounts, the terms “you,” “your,”“shareholder” and “shareholders” in this prospectus refer to the Insurance Companies.

More than one Insurance Company may invest in each Fund. It is possible that a difference may arise among theinterests of Insurance Companies that invest in a Fund or the holders of different types of Contracts — for example, ifapplicable state insurance law or Contract owner instructions prevent an Insurance Company from continuing to investin a Fund following a change in the Fund’s investment policies, or if different tax laws apply to variable life insurancecontracts and variable annuities. The Funds and the Insurance Companies will attempt to monitor events to preventsuch differences from arising. If a conflict between Insurance Companies occurs, or between life insurance policiesand annuity contracts, however, a Fund may be required to take actions that are adverse to the interests of aparticular Insurance Company and its Contract owners, or to the interests of holders of a particular type of Contract.

If approved by the BlackRock Variable Series Funds, Inc.’s (the “Company”) Board of Directors, BlackRock, on behalf ofthe Funds, may enter into agreements with a Service Organization, as defined below, pursuant to which a Fund will paya Service Organization for administrative, networking, recordkeeping, subtransfer agency and shareholder services.These payments are based on a percentage of the average daily net assets of Fund shareholders serviced by aService Organization. The aggregate amount of these payments may be substantial.

BlackRock, BlackRock Investments, LLC (the “Distributor”) and its affiliates may make payments relating to distribution andsales support activities to Insurance Companies and other financial intermediaries (“Service Organizations”) out of theirpast profits or other sources available to them (and not as an additional charge to the Funds). From time to time,BlackRock, the Distributor and their affiliates may compensate affiliated and unaffiliated Service Organizations for the saleand distribution of shares of the Funds. These payments would be in addition to the Fund payments described above, ifapproved by the Board, and may be a fixed dollar amount, may be based on the number of customer accounts maintainedby the Service Organization, or may be based on a percentage of the value of shares sold to, or held by, customers of theService Organization. The aggregate amount of these payments by BlackRock, the Distributor and their affiliates may besubstantial. Payments by BlackRock may include amounts that are sometimes referred to as “revenue sharing” payments.In some circumstances, these revenue sharing payments may create an incentive for a Service Organization, its employeesor associated persons to recommend or sell shares of the Funds to you. Please contact your Service Organization fordetails about payments it may receive from the Funds or from BlackRock, the Distributor or their affiliates. For moreinformation, see the Statement of Additional Information (the “SAI”).

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How to Buy and Sell Shares

The Company is offering through this prospectus Class I Shares in each of its Funds to the Insurance Companies. Theprice of shares purchased by the Insurance Companies is based on the next calculation of the per share net assetvalue of a Fund after an order is placed. The Company may reject any order to buy shares and may suspend the sale ofshares at any time. The Company will redeem all full and fractional shares of the Funds for cash. The price ofredeemed shares is based on the next calculation of net asset value after a redemption order is placed. The value ofshares at the time of redemption may be more or less than the shareholder’s cost, depending in part on the net assetvalue of such shares at such time.

Short-Term Trading PolicyThe Company’s Board of Directors (the “Board”) has determined that the interests of long-term shareholders and aFund’s ability to manage its investments may be adversely affected when shares are repeatedly bought, sold orexchanged in response to short-term market fluctuations — also known as “market timing.” The Funds are notdesigned for market timing organizations or other entities using programmed or frequent purchases and sales orexchanges. The exchange privilege is not intended as a vehicle for short-term trading. Excessive purchase and sale orexchange activity may interfere with portfolio management, increase expenses and taxes and may have an adverseeffect on the performance of a Fund and its returns to shareholders. For example, large flows of cash into and out ofa Fund may require the management team to allocate a significant amount of assets to cash or other short-terminvestments or sell securities, rather than maintaining such assets in securities selected to achieve a Fund’sinvestment objective. Frequent trading may cause a Fund to sell securities at less favorable prices, and transactioncosts, such as brokerage commissions, can reduce a Fund’s performance.

A fund’s investment in non-U.S. securities is subject to the risk that an investor may seek to take advantage of a delaybetween the change in value of such fund’s portfolio securities and the determination of the fund’s net asset value asa result of different closing times of U.S. and non-U.S. markets by buying or selling fund shares at a price that doesnot reflect their true value. A similar risk exists for funds that invest in securities of small capitalization companies,securities of issuers located in emerging markets or high yield securities (“junk bonds”) that are thinly traded andtherefore may have actual values that differ from their market prices. This short-term arbitrage activity can reduce thereturn received by long-term shareholders. Each Fund will seek to eliminate these opportunities by using fair valuepricing, as described in “Management of the Funds — Valuation of Fund Investments” below.

The Funds discourage market timing and seeks to prevent frequent purchases and sales or exchanges of Fund sharesthat it determines may be detrimental to the Fund or long-term shareholders. The Board has approved the policiesdiscussed below to seek to deter market timing activity. The Board has not adopted any specific numerical restrictionson purchases, sales and exchanges of Fund shares because certain legitimate strategies will not result in harm to aFund or shareholders.

If as a result of its own investigation, information provided by a financial intermediary or other third party, or otherwise,a Fund believes, in its sole discretion, that your short-term trading is excessive or that you are engaging in markettiming activity, it reserves the right to reject any specific purchase or exchange order. If a Fund rejects your purchase orexchange order, you will not be able to execute that transaction, and such Fund will not be responsible for any lossesyou therefore may suffer. For transactions placed directly with a Fund, such Fund may consider the trading history ofaccounts under common ownership or control for the purpose of enforcing these policies. Transactions placed throughthe same financial intermediary on an omnibus basis may be deemed part of a group for the purpose of this policy andmay be rejected in whole or in part by a Fund. Certain accounts, such as omnibus accounts and accounts at financialintermediaries, however, include multiple investors and such accounts typically provide a Fund with net purchase orredemption and exchange requests on any given day where purchases, redemptions and exchanges of shares arenetted against one another and the identity of individual purchasers, redeemers and exchangers whose orders areaggregated may not be known by a Fund. While the Funds monitor for market timing activity, the Funds may be unableto identify such activities because the netting effect in omnibus accounts often makes it more difficult to locate andeliminate market timers from the Funds. The Distributor has entered into agreements with respect to financialprofessionals, and other financial intermediaries that maintain omnibus accounts with the transfer agent pursuant towhich such financial professionals and other financial intermediaries undertake to cooperate with the Distributor inmonitoring purchase, exchange and redemption orders by their customers in order to detect and prevent short-term orexcessive trading in the Funds’ shares through such accounts. Identification of market timers may also be limited byoperational systems and technical limitations. In the event that a financial intermediary is determined by a Fund to beengaged in market timing or other improper trading activity, the Funds’ Distributor may terminate such financialintermediary’s agreement with the Distributor, suspend such financial intermediary’s trading privileges or take otherappropriate actions.

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There is no assurance that the methods described above will prevent market timing or other trading that may bedeemed abusive.

The Funds may from time to time use other methods that they believe are appropriate to deter market timing or othertrading activity that may be detrimental to the Funds or long-term shareholders.

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Management of the Funds

BlackRock

BlackRock, each Fund’s investment adviser, manages each Fund’s investments and its business operations subject tothe oversight of the Board of each of the Funds. While BlackRock is ultimately responsible for the management of theFunds, it is able to draw upon the trading, research and expertise of its asset management affiliates for portfoliodecisions and management with respect to certain portfolio securities. BlackRock is an indirect, wholly ownedsubsidiary of BlackRock, Inc.

BlackRock, a registered investment adviser, was organized in 1994 to perform advisory services for investmentcompanies. BlackRock Financial Management, Inc. (“BFM”), BlackRock Investment Management, LLC (“BIM”),BlackRock International Limited (“BIL”), BlackRock (Singapore) Limited (“BRS”) and BlackRock Asset ManagementNorth Asia Limited (“BNA”) are registered investment advisers organized in 1994, 1999, 1995, 2000 and 1998,respectively. BlackRock and its affiliates had approximately $4.401 trillion in investment company and other portfolioassets under management as of March 31, 2014.

Each Fund has entered into a management agreement (the “Management Agreement”) with BlackRock. Under theManagement Agreement, BlackRock receives for its services to the Funds a fee at an annual rate described below. Thefee is computed daily on a Fund-by-Fund basis and payable monthly.

BlackRock Basic Value V.I. Fund

Portion of Average Daily Value of Net Assets Management Fee

Not exceeding $1 billion 0.60%

In excess of $1 billion but not more than $3 billion 0.56%



In excess of $10 billion 0.51%

BlackRock Capital Appreciation V.I. Fund







BlackRock Equity Dividend V.I. Fund







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BlackRock Global Allocation V.I. Fund







BlackRock Global Opportunities V.I. Fund







BlackRock International V.I. Fund







BlackRock Large Cap Core V.I. Fund


Not exceeding $250 million 0.500%

In excess of $250 million but not more than $300 million 0.450%

In excess of $300 million but not more than $400 million 0.425%

In excess of $400 million 0.400%

BlackRock Large Cap Growth V.I. Fund







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BlackRock Large Cap Value V.I. Fund







For BlackRock Large Cap Value V.I. Fund, BlackRock has agreed to voluntarily waive 0.10% of its management feepayable by the Fund. This voluntary waiver may be reduced or discontinued at any time without notice.

BlackRock Managed Volatility V.I. Fund







BlackRock Money Market V.I. Fund










BlackRock S&P 500 Index V.I. Fund

Management Fee

0.300%

For BlackRock S&P 500 Index V.I. Fund, BlackRock has contractually agreed to waive 0.10% of its management feeuntil May 1, 2015. The contractual agreement may be terminated upon 90 days notice by a majority of thenon-interested directors of the Fund or by a vote of the outstanding voting securities of the Fund.

BlackRock U.S. Government Bond V.I. Fund







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BlackRock Value Opportunities V.I. Fund







BlackRock High Yield V.I. Fund and BlackRock Total Return V.I. Fund

Management Fee

Portion of Aggregate Average Daily Value of Net Assets of both Funds:

BlackRockHigh YieldV.I. Fund

BlackRockTotal Return

V.I. Fund

Not exceeding $250 million 0.55% 0.50%

In excess of $250 million but not exceeding $500 million 0.50% 0.45%

In excess of $500 million but not exceeding $750 million 0.45% 0.40%

In excess of $750 million 0.40% 0.35%

The fee rates for the High Yield V.I. Fund and the Total Return V.I. Fund are applied to the average daily net assets ofeach Fund, with the reduced rates shown below applicable to portions of the assets of each Fund to the extent thatthe aggregate average daily net assets of the High Yield V.I. Fund and Total Return V.I. Fund combined exceed$250 million, $500 million and $750 million (each such amount being a “breakpoint level”). The portion of the assetsof a Fund to which the rate at each breakpoint level applies will be determined on a “uniform percentage” basis. Theuniform percentage applicable to a breakpoint level is determined by dividing the amount of the aggregate averagedaily net assets of the combined Funds that falls within that breakpoint level by the aggregate average daily net assetsof the combined Funds. The amount of the fee for a Fund at each breakpoint level is determined by multiplying theaverage daily net assets of that Fund by the uniform percentage applicable to that breakpoint level and multiplying theproduct by the advisory fee rate.

For the Money Market V.I. Fund, the Manager has voluntarily agreed to waive a portion of its fees and/or reimburseoperating expenses to enable the Fund to maintain a minimum daily net investment income dividend. The Managermay discontinue this waiver and/or reimbursement at any time without notice. Taking into account this voluntary waiverand/or reimbursement of fees, the Total Annual Fund Operating Expenses may be lower than shown in the Annual FundOperating Expenses table.

BlackRock has contractually agreed to cap net expenses (excluding (i) interest, taxes, dividends tied to short sales,brokerage commissions, and other expenditures which are capitalized in accordance with generally acceptedaccounting principles; (ii) expenses incurred directly or indirectly by a Fund as a result of investments in otherinvestment companies and pooled investment vehicles; (iii) other expenses attributable to, and incurred as a result of,a Fund’s investments; and (iv) other extraordinary expenses (including litigation expenses) not incurred in the ordinarycourse of a Fund’s business, if any), of each share class of certain Funds at the levels shown below. (Items (i), (ii), (iii)and (iv) in the preceding sentence are referred to in this prospectus as “Dividend Expense, Interest Expense, AcquiredFund Fees and Expenses and certain other Fund expenses.”) To achieve these expense caps, BlackRock has agreed towaive or reimburse fees or expenses if these operating expenses exceed a certain limit.

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With respect to Class I shares of each fund, as set forth in the table below, BlackRock has i) contractually agreed towaive and/or reimburse fees and/or expenses in order to limit Total Annual Fund Operating Expenses After FeeWaivers and/or Expense Reimbursements; and ii) contractually agreed to reimburse fees in order to limit operationaland recordkeeping fees to the amounts noted in the table below.

Contractual Caps1 on TotalAnnual Fund OperatingExpenses* (excluding

Dividend Expense,Interest Expense,

Acquired Fund Fees andExpenses and certainother Fund expenses)

Contractual Caps1

on fees paid by Fundfor Operational and

Recordkeeping Services

Basic Value V.I. Fund 1.25% 0.06%

Capital Appreciation V.I. Fund 1.25% 0.07%

Equity Dividend V.I. Fund 1.25% 0.00%

Global Allocation V.I. Fund 1.25% 0.07%

Global Opportunities V.I. Fund 1.25% 0.00%

High Yield V.I. Fund 1.25% 0.06%

International V.I. Fund 1.25% 0.08%

Large Cap Core V.I. Fund 1.25% 0.05%

Large Cap Growth V.I. Fund 1.25% 0.07%

Large Cap Value V.I. Fund 1.25% 0.00%

Managed Volatility V.I. Fund 1.25% 0.00%

Money Market V.I. Fund 1.25% 0.02%

S&P 500 Index V.I. Fund 1.25% 0.00%

Total Return V.I. Fund 1.25% 0.00%

U.S. Government Bond V.I. Fund 1.25% 0.00%

Value Opportunities V.I. Fund 1.25% 0.07%

* As a percentage of average daily net assets and based on current fees.1 The contractual caps are in effect until May 1, 2015. The contractual agreement may be terminated, with respect to each Fund, upon 90 days

notice by a majority of the non-interested directors of the Fund or by a vote of a majority of the outstanding voting securities of the Fund.

With respect to each Fund, BlackRock has voluntarily agreed to waive its management fees by the amount of advisoryfees the Fund pays to BlackRock indirectly through its investment in affiliated money market funds.For the fiscal year ended December 31, 2013, BlackRock received a fee, net of applicable waivers, at the annual rateof each Fund’s average daily net assets as described below.

Fund Name Management Fee

Basic Value V.I. Fund 0.60%

Capital Appreciation V.I. Fund 0.65%

Equity Dividend V.I. Fund 0.60%

Global Allocation V.I. Fund 0.62%

Global Opportunities V.I. Fund 0.75%

High Yield V.I. Fund 0.54%

International V.I. Fund 0.75%

Large Cap Core V.I. Fund 0.46%

Large Cap Growth V.I. Fund 0.65%

Large Cap Value V.I. Fund 0.65%

Managed Volatility V.I. Fund 0.21%

Money Market V.I. Fund 0.14%

S&P 500 Index V.I. Fund 0.30%

Total Return V.I. Fund 0.49%

U.S. Government Bond V.I. Fund 0.50%

Value Opportunities V.I. Fund 0.75%

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BlackRock has entered into a sub-advisory agreement with BFM, an affiliate of BlackRock. Under the sub-advisoryagreement, BlackRock pays BFM a monthly fee for services it provides at an annual rate equal to a percentage of themanagement fee paid to BlackRock under the Management Agreement. BFM is responsible for the day-to-daymanagement of the High Yield V.I. Fund, U.S. Government Bond V.I. Fund and Total Return V.I. Fund and a portion ofthe Managed Volatility V.I. Fund.

BlackRock has entered into a sub-advisory agreement with BIM, an affiliate of BlackRock. Under the sub-advisoryagreement, BlackRock pays BIM a monthly fee for services it provides at an annual rate equal to a percentage of themanagement fee paid to BlackRock under the Management Agreement. BIM is responsible for the day-to-daymanagement of the Basic Value V.I. Fund, Capital Appreciation V.I. Fund, Global Allocation V.I. Fund, GlobalOpportunities V.I. Fund, S&P 500 Index V.I. Fund, Large Cap Core V.I. Fund, Large Cap Growth V.I. Fund, Large CapValue V.I. Fund, Value Opportunities V.I. Fund and Equity Dividend V.I. Fund.

BlackRock has entered into a sub-advisory agreement with BIL, an affiliate of BlackRock. Under the sub-advisoryagreement, BlackRock pays BIL a monthly fee for services it provides at an annual rate equal to a percentage of themanagement fee paid to BlackRock under the Management Agreement. BIL is responsible for the day-to-daymanagement of the International V.I. Fund and a portion of the Managed Volatility V.I. Fund. Prior to July 1, 2013, BILwas a sub-adviser to Global Allocation V.I. Fund and received for its services a fee from BlackRock equal to apercentage of the management fee paid to BlackRock under the Management Agreement.

BlackRock has entered into a sub-advisory agreement with BNA, an affiliate of BlackRock. Under the sub-advisoryagreement, BlackRock pays BNA a monthly fee for services it provides at an annual rate equal to a percentage of themanagement fee paid to BlackRock under the Management Agreement. BNA is responsible for the day-to-daymanagement of a portion of the Managed Volatility V.I. Fund. Effective March 21, 2014, BNA replaced BlackRock(Hong Kong) Limited as a sub-adviser of the Fund. Prior to March 21, 2014, BlackRock (Hong Kong) Limited wasa sub-adviser to the Managed Volatility V.I. Fund and received for its services a fee from BlackRock equal to apercentage of the management fee paid to BlackRock under the Management Agreement.

BlackRock has entered into a sub-advisory agreement with BRS, an affiliate of BlackRock. Under the sub-advisoryagreement, BlackRock pays BRS a monthly fee for services it provides at an annual rate equal to a percentage of themanagement fee paid to BlackRock under the Management Agreement. BRS is responsible for the day-to-daymanagement of a portion of the Managed Volatility V.I. Fund.

A discussion of the basis for the Board’s approval of the Management Agreement with BlackRock and eachsub-advisory agreement between BlackRock and each sub-adviser (other than the subadvisory agreement with BNA) isincluded in each Fund’s semi-annual report for the fiscal period ended June 30, 2013. A discussion regarding thebasis for the Board’s approval of the sub-advisory agreement with BNA will be available in the Fund’s semi-annualreport for the period ending June 30, 2014.

From time to time, a manager, analyst, or other employee of BlackRock or its affiliates may express views regarding aparticular asset class, company, security, industry, or market sector. The views expressed by any such person are the views ofonly that individual as of the time expressed and do not necessarily represent the views of BlackRock or any other personwithin the BlackRock organization. Any such views are subject to change at any time based upon market or other conditionsand BlackRock disclaims any responsibility to update such views. These views may not be relied on as investment advice and,because investment decisions for a Fund are based on numerous factors, may not be relied on as an indication of tradingintent on behalf of a Fund.

Legal Proceedings. On February 21, 2014, a lawsuit was filed in the United States District Court for the District ofNew Jersey by Owen Clancy and Jack Hornstein, purported investors in the BlackRock Global Allocation Fund, Inc.(“Global Allocation”), against BlackRock, BlackRock Investment Management, LLC and BlackRock International Limited(collectively, the “Defendants”) for alleged violations of Section 36(b) of the Investment Company Act (the “ClancyComplaint”). The Clancy Complaint purports to be brought derivatively on behalf of Global Allocation. The ClancyComplaint alleges that the Defendants breached their fiduciary duties under the Investment Company Act by chargingexcessive investment advisory fees, and that the investment advisory agreement between Global Allocation andBlackRock is unenforceable under Section 47(b) of the Investment Company Act. The plaintiffs seek injunctive relief,rescission of the investment advisory agreement and compensatory damages, including repayment to Global Allocationof all allegedly excessive investment advisory fees paid by Global Allocation from one year prior to the filing of thelawsuit plus lost investment returns on those amounts and interest. The Defendants believe the claims in the ClancyComplaint are without merit and intend to vigorously defend the action.

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On March 28, 2014, a lawsuit was filed in the United States District Court for the District of New Jersey by BrendanFoote, in his capacity as trustee on behalf of the Separate Property TR U/A DTD 10-26-12, a purported investor inGlobal Allocation, against BlackRock (the “Foote Complaint”). The Foote Complaint purports to be brought derivativelyon behalf of Global Allocation. The Foote Complaint alleges that BlackRock breached its fiduciary duties by chargingexcessive investment advisory fees, in alleged violation of Section 36(b) of the Investment Company Act. The plaintiffseeks injunctive and declaratory relief, rescission of the investment advisory agreement and compensatory damages,including repayment to Global Allocation of all allegedly excessive investment advisory fees paid by Global Allocationfrom one year prior to the filing of the lawsuit. BlackRock believes the claims in the Foote Complaint are without meritand intends to vigorously defend the action.

On April 3, 2014, a lawsuit was filed in the United States District Court for the District of New Jersey by Amy Fox, apurported investor in the BlackRock Equity Dividend Fund (“Equity Dividend”), against BlackRock (the “Fox Complaint”).The Fox Complaint purports to be brought derivatively on behalf of Equity Dividend. The Fox Complaint alleges thatBlackRock breached its fiduciary duties by charging excessive investment advisory fees, in alleged violation of Section36(b) of the Investment Company Act. The plaintiff seeks injunctive and declaratory relief, rescission of the investmentadvisory agreement and compensatory damages, including repayment to Equity Dividend of all allegedly excessiveinvestment advisory fees paid by Equity Dividend from one year prior to the filing of the lawsuit. BlackRock believes theclaims in the Fox Complaint are without merit and intends to vigorously defend the action.

Portfolio Manager Information

Information regarding the portfolio managers of each Fund is set forth below. Further information regarding theportfolio managers, including other accounts managed, compensation, ownership of Fund shares, and possibleconflicts of interest, is available in the Funds’ SAI.

BlackRock Basic Value V.I. FundThe Fund is managed by Bartlett Geer, CFA and Carrie King, who are jointly and primarily responsible for the day-to-daymanagement of the Fund. Mr. Geer is the senior portfolio manager and Ms. King is the associate portfolio manager.

Portfolio Manager Primary Role Since Title and Recent Biography

Bartlett Geer, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2012 Managing Director of BlackRock, Inc. since2012; Managing Director and Portfolio Managerof the Putnam Equity Income Fund and US LargeCap Value institutional equity portfolios atPutnam Investments from 2000 to 2012.

Carrie King Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2009 Managing Director of BlackRock, Inc. since 2010;Director of BlackRock, Inc. from 2007 to 2010;Vice President of BlackRock, Inc. in 2006.

BlackRock Capital Appreciation V.I. FundThe Fund is managed by Lawrence Kemp, who is primarily responsible for the day-to-day management of the Fund.


Lawrence Kemp Primarily responsible for the day-to-day management of the Fund’sportfolio, including setting theFund’s overall investment strategyand overseeing the management ofthe Fund.

2013 Managing Director of BlackRock, Inc. since2012; Prior to joining BlackRock, Inc., Mr. Kempwas a Managing Director at UBS Global AssetManagement.

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BlackRock Equity Dividend V.I. FundThe Fund is managed by Robert M. Shearer, CFA, Kathleen M. Anderson, and David J. Cassese, CFA, who are jointlyand primarily responsible for the day-to-day management of the Fund.


Robert M. Shearer, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2010 Managing Director of BlackRock, Inc. since2006; Managing Director of Merrill LynchInvestment Managers, L.P. (“MLIM”) from 2000to 2006.

Kathleen M. Anderson Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2001 Managing Director of BlackRock, Inc. since2007; Director of BlackRock, Inc. in 2006;Director of MLIM from 2000 to 2006.

David J. Cassese, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2011 Director of BlackRock, Inc. since 2011; SeniorVice President of Oppenheimer Capital from2008 to 2011; Vice President of OppenheimerCapital from 2005 to 2007.

BlackRock Global Allocation V.I. FundThe Fund is managed by Dennis Stattman, CFA, Dan Chamby, CFA and Aldo Roldan, PhD, who are jointly and primarilyresponsible for the management of the Fund.


Dennis Stattman, CFA Jointly and primarily responsible forthe management of the Fund’sportfolio, including setting theFund’s overall investment strategyand overseeing the management ofthe Fund.

2001 Managing Director of BlackRock, Inc. since2006 and Head of BlackRock’s Global Allocationteam.

Dan Chamby, CFA Jointly and primarily responsible forthe management of the Fund’sportfolio, including setting theFund’s overall investment strategyand overseeing the management ofthe Fund.

2003 Managing Director of BlackRock, Inc. since2007; Director of BlackRock, Inc. in 2006.

Aldo Roldan, PhD Jointly and primarily responsible forthe management of the Fund’sportfolio, including setting theFund’s overall investment strategyand overseeing the management ofthe Fund.

2006 Managing Director of BlackRock, Inc. since2008; Director of BlackRock, Inc. from 2006 to2007.

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BlackRock Global Opportunities V.I. FundThe Fund is managed by Thomas Callan, CFA, Ian Jamieson, CFA and Nigel Hart, CFA, who are jointly and primarilyresponsible for the day-to-day management of the Fund.


Thomas Callan, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2008 Managing Director of BlackRock, Inc. since1998; Head of BlackRock’s Global Opportunitiesequity team.

Ian Jamieson, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2011 Managing Director of BlackRock, Inc. since2012; Director of BlackRock, Inc. from 2007 to2011; Vice President of BlackRock, Inc. from2004 to 2006.

Nigel Hart, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2012 Managing Director of BlackRock, Inc. since2012; Managing Partner and Portfolio Managerof ReachCapital Management LP from 2000 to2010.

BlackRock High Yield V.I. FundThe Fund is managed by James Keenan, CFA, Mitchell Garfin, CFA, David Delbos and Derek Schoenhofen, who arejointly and primarily responsible for the day-to-day management of the Fund.


James Keenan, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2007 Managing Director of BlackRock, Inc. since2008 and Head of the Leveraged FinancePortfolio team; Director of BlackRock, Inc. from2006 to 2007.

Mitchell Garfin, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.


David Delbos Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2014 Managing Director of BlackRock, Inc. since2012; Director of BlackRock, Inc. from 2007 to2011; Vice President of BlackRock, Inc. from2005 to 2006.

Derek Schoenhofen Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2009 Director of BlackRock, Inc. since 2006; VicePresident of BlackRock, Inc. from 2000 to2005.

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BlackRock International V.I. FundThe Fund is managed by James Bristow, CFA and Gareth Williams, who are jointly and primarily responsible for theday-to-day management of the Fund.


James Bristow, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.


Gareth Williams Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2011 Director of BlackRock, Inc. since 2013; VicePresident of BlackRock, Inc. from 2010 to2012; Associate of BlackRock, Inc. from 2008to 2009; Analyst with BlackRock, Inc. from 2006to 2007.

BlackRock Large Cap Core V.I. Fund, BlackRock Large Cap Growth V.I. Fund and BlackRock Large CapValue V.I. FundEach Fund is managed by Peter Stournaras, CFA, who is primarily responsible for the day-to-day management of eachFund.


Peter Stournaras, CFA Primarily responsible for the day-to-day management of each Fund’sportfolio, including setting eachFund’s overall investment strategyand overseeing the management ofthe Funds.

2010 Managing Director of BlackRock, Inc. since2010; Director at Northern Trust Company from2006 to 2010; Portfolio Manager at SmithBarney/Legg Mason from 2005 to 2006;Director at Citigroup Asset Management from1998 to 2005.

BlackRock Managed Volatility V.I. FundThe Fund is managed by Philip Green, Sunder Ramkumar, CFA, and Justin Christofel, CFA, who are jointly and primarilyresponsible for the day-to-day management of the Fund.


Philip Green Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2008 Managing Director of BlackRock, Inc. since2006.

Sunder Ramkumar, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2013 Managing Director of BlackRock, Inc. since2013; Director of BlackRock, Inc. from 2009 to2012; Principal at Barclays Global Investors(“BGI”) from 2007 to 2009.

Justin Christofel, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2013 Director of BlackRock, Inc. since 2013; VicePresident of BlackRock, Inc. from 2010 to2013; Associate of BlackRock, Inc. from 2008to 2010; Analyst of BlackRock, Inc. from 2007to 2008.

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BlackRock Money Market V.I. FundThe Fund is managed by Thomas Kolimago and Coleen Gasiewski, who are jointly and primarily responsible for theday-to-day management of the Fund.


Thomas Kolimago Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2006 Managing Director of BlackRock, Inc. since2007; Director of BlackRock, Inc. since 2004 to2006.

Coleen Gasiewski Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2009 Director of BlackRock, Inc. since 2008; VicePresident of BlackRock, Inc. from 2006 to2007; Vice President of Merrill Lynch InvestmentManagers, L.P. from 2000 to 2006.

BlackRock S&P 500 Index V.I. FundThe Fund is managed by Christopher Bliss, CFA, CPA, Greg Savage, CFA and Alan Mason, who are jointly and primarilyresponsible for the day-to-day management of the Fund.


Christopher Bliss, CFA,CPA

Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2011 Managing Director of BlackRock, Inc. since2009; Principal of Barclays Global Investors(“BGI”) from 2005 to 2009.

Greg Savage, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2011 Managing Director of BlackRock, Inc. since2010; Director of BlackRock, Inc. in 2009;Principal of BGI from 2007 to 2009; Associateof BGI from 1999 to 2007.

Alan Mason Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2014 Managing Director of BlackRock, Inc. since2009; Managing Director of BGI from 2008 to2009; Principal of BGI from 1996 to 2009.

BlackRock Total Return V.I. FundThe Fund is managed by Rick Rieder and Bob Miller, who are jointly and primarily responsible for the day-to-daymanagement of the Fund.


Rick Rieder Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2010 Chief Investment Officer of Fixed Income,Fundamental Portfolios of BlackRock, Inc., andHead of its Global Credit Business and CreditStrategies, Multi-Sector and Mortgage Groupssince 2010; Managing Director of BlackRock,Inc. since 2009; President and Chief ExecutiveOfficer of R3 Capital Partners from 2008 to2009; Managing Director of Lehman Brothersfrom 1994 to 2008.

Bob Miller Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2011 Managing Director of BlackRock, Inc. since2011; Co-Founder and Partner of Round TableInvestment Management Company from 2007 to2009; Managing Director of Bank of Americafrom 1999 to 2007.

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BlackRock U.S. Government Bond V.I. FundThe Fund is managed by Bob Miller and Matthew Kraeger, who are jointly and primarily responsible for the day-to-daymanagement of the Fund.


Bob Miller Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2012 Managing Director of BlackRock, Inc. since2011; Co-Founder and Partner of Round TableInvestment Management Company from 2007 to2009; Managing Director of Bank of Americafrom 1999 to 2007.

Matthew Kraeger Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2012 Director of BlackRock, Inc. since 2009; VicePresident of BlackRock, Inc. from 2006 to2008.

BlackRock Value Opportunities V.I. FundThe Fund is managed by John Coyle, CFA and Murali Balaraman, CFA, who are jointly and primarily responsible for theday-to-day management of the Fund.


John Coyle, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2009 Managing Director of BlackRock, Inc. since2009; Director of BlackRock, Inc. from 2006 to2008; Director of Merrill Lynch InvestmentManagers, L.P. (“MLIM”) in 2006.

Murali Balaraman, CFA Jointly and primarily responsible forthe day-to-day management of theFund’s portfolio, including settingthe Fund’s overall investmentstrategy and overseeing themanagement of the Fund.

2009 Managing Director of BlackRock, Inc. since2009; Director of BlackRock, Inc. from 2006 to2008; Director of MLIM in 2006.

Conflicts of Interest

The investment activities of BlackRock and its affiliates (including BlackRock, Inc. and PNC Financial Services Group,Inc. and their affiliates, directors, partners, trustees, managing members, officers and employees (collectively, the“Affiliates”)) in the management of, or their interest in, their own accounts and other accounts they manage, maypresent conflicts of interest that could disadvantage the Funds and their shareholders. BlackRock and its Affiliatesprovide investment management services to other funds and discretionary managed accounts that follow investmentprograms similar to that of the Funds. BlackRock and its Affiliates are involved worldwide with a broad spectrum offinancial services and asset management activities and may engage in the ordinary course of business in activities inwhich their interests or the interests of their clients may conflict with those of a Fund. One or more Affiliates act or mayact as an investor, investment banker, research provider, investment manager, financier, advisor, market maker, trader,prime broker, lender, agent and principal, and have other direct and indirect interests, in securities, currencies andother instruments in which a Fund directly and indirectly invests. Thus, it is likely that a Fund will have multiplebusiness relationships with and will invest in, engage in transactions with, make voting decisions with respect to, orobtain services from entities for which an Affiliate performs or seeks to perform investment banking or other services.One or more Affiliates may engage in proprietary trading and advise accounts and funds that have investmentobjectives similar to those of a Fund and/or that engage in and compete for transactions in the same types ofsecurities, currencies and other instruments as a Fund. The trading activities of these Affiliates are carried out withoutreference to positions held directly or indirectly by a Fund and may result in an Affiliate having positions that areadverse to those of a Fund. No Affiliate is under any obligation to share any investment opportunity, idea or strategywith a Fund. As a result, an Affiliate may compete with a Fund for appropriate investment opportunities. The results ofa Fund’s investment activities, therefore, may differ from those of an Affiliate and of other accounts managed by anAffiliate, and it is possible that a Fund could sustain losses during periods in which one or more Affiliates and otheraccounts achieve profits on their trading for proprietary or other accounts. The opposite result is also possible. Inaddition, a Fund may, from time to time, enter into transactions in which an Affiliate or its other clients have an

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adverse interest. Furthermore, transactions undertaken by Affiliate-advised clients may adversely impact a Fund.Transactions by one or more Affiliate-advised clients or BlackRock may have the effect of diluting or otherwisedisadvantaging the values, prices or investment strategies of a Fund. A Fund’s activities may be limited because ofregulatory restrictions applicable to one or more Affiliates, and/or their internal policies designed to comply with suchrestrictions. In addition, a Fund may invest in securities of companies with which an Affiliate has or is trying to developinvestment banking relationships or in which an Affiliate has significant debt or equity investments. A Fund also mayinvest in securities of companies for which an Affiliate provides or may someday provide research coverage. An Affiliatemay have business relationships with and purchase or distribute or sell services or products from or to distributors,consultants or others who recommend a Fund or who engage in transactions with or for a Fund, and may receivecompensation for such services. A Fund may also make brokerage and other payments to Affiliates in connection witha Fund’s portfolio investment transactions.

Under a securities lending program approved by the Board, the Funds have retained an Affiliate of BlackRock to serveas the securities lending agent for the funds to the extent that the Funds participate in the securities lending program.For these services, the lending agent will receive a fee from the Funds, including a fee based on the returns earned onthe Funds’ investment of the cash received as collateral for the loaned securities. In addition, one or more Affiliatesmay be among the entities to which the Funds may lend its portfolio securities under the securities lending program.

The activities of Affiliates may give rise to other conflicts of interest that could disadvantage the Funds and theirshareholders. BlackRock has adopted policies and procedures designed to address these potential conflicts ofinterest. See the SAI for further information.

Valuation of Fund Investments

Each Fund other than Money Market V.I. FundWhen an Insurance Company purchases shares, the Insurance Company pays the net asset value. This is the offeringprice. Shares are also redeemed at their net asset value. Each Fund calculates its net asset value of each class of itsshares (generally by using market quotations) each day the New York Stock Exchange (“NYSE”) is open, as of the closeof business on the NYSE, based on prices at the time of closing. The NYSE generally closes at 4:00 p.m. Easterntime. The net asset value used in determining your share price is the next one calculated after your purchase orredemption order is placed. Each business day, the Funds’ net asset values are transmitted electronically to theInsurance Companies that use the Funds as underlying investment options for Contracts.

The Funds’ assets and liabilities are valued primarily on the basis of market quotations. Equity investments and otherinstruments for which market quotations are readily available are valued at market value, which is generallydetermined using the last reported sale price on the exchange or market on which the security or instrument isprimarily traded at the time of valuation. The Funds value fixed income portfolio securities and non-exchange tradedderivatives using market prices provided directly from one or more broker-dealers, market makers, or independentthird-party pricing services, which may use matrix pricing and valuation models to derive values, each in accordancewith valuation procedures approved by the Board. Short-term debt securities with remaining maturities of sixty days orless are valued on the basis of amortized cost.

Foreign currency exchange rates are generally determined as of the close of business on the NYSE. Foreign securitiesowned by the Funds may trade on weekends or other days when a Fund does not price its shares. As a result, theFunds’ net asset value may change on days when you will not be able to purchase or redeem a Fund’s shares.Generally, trading in foreign securities, U.S. government securities and money market instruments, and certain fixedincome securities is substantially completed each day at various times prior to the close of business on the NYSE. Thevalues of such securities used in computing the net asset value of a Fund’s shares are determined as of such times.

When market quotations are not readily available or are not believed by BlackRock to be reliable, a Fund’s investmentsare valued at fair value. Fair value determinations are made by BlackRock in accordance with procedures approved bythe Board. BlackRock may conclude that a market quotation is not readily available or is unreliable if a security orother asset or liability does not have a price source due to its lack of liquidity, if BlackRock believes a market quotationfrom a broker-dealer or other source is unreliable, where the security or other asset or other liability is thinly traded(e.g., municipal securities, certain small cap and emerging growth companies and certain non-U.S. securities) or wherethere is a significant event subsequent to the most recent market quotation. For this purpose, a “significant event” isdeemed to occur if BlackRock determines, in its business judgment prior to or at the time of pricing a Fund’s assets orliabilities, that it is likely that the event will cause a material change to the last closing market price of one or moreassets or liabilities held by the Fund. For instance, significant events may occur between the foreign market close and

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the close of business on the Exchange that may not be reflected in the computation of the Funds’ net assets. If suchevent occurs, those instruments may be fair valued. Similarly, foreign securities whose values are affected by volatilitythat occurs in U.S. markets on a trading day after the close of foreign securities markets may be fair valued.

For certain foreign securities, a third-party vendor supplies evaluated, systematic fair value pricing based on themovement of a proprietary multi-factor model after the relevant foreign markets have closed. This systematic fair valuepricing methodology is designed to correlate the prices of foreign securities following the close of the local markets tothe price that might have prevailed as of a Fund’s pricing time.

Fair value represents a good faith approximation of the value of a security. The fair value of one or more securities maynot, in retrospect, be the price at which those assets could have been sold during the period in which the particularfair values were used in determining a Fund’s net asset value.

A Fund may accept orders from certain authorized Financial Intermediaries or their designees. A Fund will be deemedto receive an order when accepted by the intermediary or designee, and the order will receive the net asset value nextcomputed by the Fund after such acceptance. If the payment for a purchase order is not made by a designated latertime, the order will be canceled and the financial intermediary could be held liable for any losses.

Money Market V.I. FundWhen an Insurance Company purchases shares, the Insurance Company pays the net asset value (normally $1.00 pershare). This is the offering price. Shares are also redeemed at their net asset value.

The Fund calculates the net asset value (generally by using market quotations) each day the NYSE is open, as of theclose of business on the NYSE, based on prices at the time of closing. The NYSE generally closes at 4:00 p.m.Eastern time. The net asset value used in determining your share price is the next one calculated after your purchaseor redemption order becomes effective. Share purchase orders are effective on the date Federal Funds becomeavailable to the Fund.

The amortized cost method is used in calculating net asset value, meaning that the calculation is based on a valuationof the assets held by the Fund at cost, with an adjustment for any discount or premium on a security at the time ofpurchase.

Foreign currency exchange rates are generally determined as of the close of business on the NYSE. Foreign securitiesowned by the Funds may trade on weekends or other days when a Fund does not price its shares. As a result, theFunds’ net asset value may change on days when you will not be able to purchase or redeem a Fund’s shares.Generally, trading in foreign securities, U.S. government securities and money market instruments and certain fixedincome securities is substantially completed each day at various times prior to the close of business on the NYSE. Thevalues of such securities used in computing the net asset value of a Fund’s shares are determined as of such times.

The Fund may accept orders from certain authorized financial intermediaries or their designees. The Fund will bedeemed to receive an order when accepted by the intermediary or designee, and the order will receive the net assetvalue next computed by the Fund after such acceptance. If the payment for a purchase order is not made by adesignated later time, the order will be canceled and the financial intermediary could be held liable for any losses.

Dividends and Taxes

The Money Market V.I., High Yield V.I., Total Return V.I. and U.S. Government Bond V.I. Funds declare dividends dailyand reinvest dividends monthly in additional full and fractional shares of the respective Fund. The Basic Value V.I.,Capital Appreciation V.I., Equity Dividend V.I., Global Opportunities V.I., Global Allocation V.I., S&P 500 Index V.I.,International V.I., Large Cap Core V.I., Large Cap Growth V.I., Large Cap Value V.I., Managed Volatility V.I., and ValueOpportunities V.I. Funds declare dividends at least annually and reinvest dividends at least annually in additionalshares of the respective Funds.

Each Fund has elected to be treated, and intends to qualify each year, as a regulated investment company under theInternal Revenue Code of 1986, as amended (the “Code”). In order to qualify to be taxed as a regulated investmentcompany, each Fund must meet certain income and asset diversification tests and distribution requirements. Asregulated investment companies, the Funds will not be subject to Federal income tax on their net investment incomeand net capital gains that they distribute to their shareholders.

In addition, each Fund intends to meet certain diversification and investor control requirements applicable to regulatedinvestment companies underlying variable insurance products. The requirements generally provide that, as of the endof each calendar quarter or within 30 days thereafter, no more than 55% of the total assets of a Fund may berepresented by any one investment, no more than 70% by any two investments, no more than 80% by any three

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investments, and no more than 90% by any four investments. For this purpose, all securities of the same issuer areconsidered a single investment, but in the case of Government securities, each Government agency or instrumentalityis considered to be a separate issuer. An alternative diversification test may be satisfied under certain circumstances.

If a Fund should fail to comply with the diversification or investor control requirements or were to otherwise fail toqualify for the special tax treatment afforded regulated investment companies under the Code, Contracts invested inthe Fund would not be treated as annuity, endowment, or life insurance contracts for Federal tax purposes, and incomeand gain earned inside the Contracts in current and prior years would be taxed currently to the Contract holders andwould remain taxable in future years as well, even if the Fund were to become adequately diversified.

Dividends paid by the Company may be included in an Insurance Company’s gross income. The tax treatment of thesedividends depends on the Insurance Company’s tax status. A description of an Insurance Company’s tax status iscontained in the prospectus for the Contract.

A 3.8% Medicare contribution tax is imposed on the net investment income (which includes, but is not limited to,taxable dividends, taxable annuity payments and net gain from investments) of certain individuals, trusts and estates,for taxable years beginning after December 31, 2012.

A 30% withholding tax will be imposed on dividends paid after June 30, 2014, and redemption proceeds paid afterDecember 31, 2016, to (i) foreign financial institutions, including non-U.S. investment funds, unless they agree tocollect and disclose to the U.S. Internal Revenue Service (“IRS”) information regarding their direct and indirect U.S.account holders and (ii) certain other foreign entities, unless they certify certain information regarding their direct andindirect U.S. owners. To avoid withholding, foreign financial institutions will need to (i) enter into agreements with theIRS that state that they will provide the IRS information, including the names, addresses and taxpayer identificationnumbers of direct and indirect U.S. account holders; comply with due diligence procedures with respect to theidentification of U.S. accounts; report to the IRS certain information with respect to U.S. accounts maintained; agreeto withhold tax on certain payments made to non-compliant foreign financial institutions or to account holders who failto provide the required information; and determine certain other information as to their account holders, or (ii) in theevent that an applicable intergovernmental agreement and adopting legislation are enacted, provide local revenueauthorities with similar account holder information. Other foreign entities will need to provide the name, address, andtaxpayer identification number of each substantial U.S. owner or certifications of no substantial U.S. ownership, unlesscertain exceptions apply.

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General Information

Shareholder Documents

Please contact your Insurance Company for a copy of the Funds’ annual and semi-annual reports.

Certain Fund Policies

Anti-Money Laundering RequirementsThe Funds are subject to the USA PATRIOT Act (the “Patriot Act”). The Patriot Act is intended to prevent the use of theU.S. financial system in furtherance of money laundering, terrorism or other illicit activities. Pursuant to requirementsunder the Patriot Act, the Funds are required to obtain sufficient information from shareholders to enable it to form areasonable belief that it knows the true identity of its shareholders. This information will be used to verify the identityof investors or, in some cases, the status of financial professionals. Such information may be verified using third-partysources. This information will be used only for compliance with the Patriot Act or other applicable laws, regulations andrules in connection with money laundering, terrorism or economic sanctions.

The Funds reserve the right to reject purchase orders from persons who have not submitted information sufficient toallow the Funds to verify their identity. The Funds also reserve the right to redeem any amounts in the Funds frompersons whose identity it is unable to verify on a timely basis. It is the Funds’ policy to cooperate fully withappropriate regulators in any investigations conducted with respect to potential money laundering, terrorism or otherillicit activities.

BlackRock Privacy PrinciplesBlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients(collectively, “Clients”) and to safeguarding their nonpublic personal information. The following information is providedto help you understand what personal information BlackRock collects, how we protect that information and why incertain cases we share such information with select parties. If you are located in a jurisdiction where specific laws,rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what isset forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal nonpublic information from and about you from different sources, including thefollowing: (i) information we receive from you or, if applicable, your Financial Intermediary, on applications, forms orother documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receivefrom a consumer reporting agency; and (iv) from visits to our website.

BlackRock does not sell or disclose to nonaffiliated third parties any nonpublic personal information about its Clients,except as permitted by law, or as is necessary to respond to regulatory requests or to service Client accounts. Thesenonaffiliated third parties are required to protect the confidentiality and security of this information and to use it onlyfor its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about otherBlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to nonpublicpersonal information about its Clients to those BlackRock employees with a legitimate business need for theinformation. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect thenonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of suchinformation.

Statement of Additional Information

If you would like further information about the Funds, including how the Funds invest, please see the SAI.

For a discussion of the Funds’ policies and procedures regarding the selective disclosure of their portfolio holdings,please see the SAI.

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GlossaryThis glossary contains an explanation of some of the common terms used in this prospectus. For additionalinformation about the Funds, please see the SAI.

Acquired Fund Fees and Expenses — fees and expenses charged by other investment companies in which a Fundinvests a portion of its assets.

Annual Fund Operating Expenses — expenses that cover the costs of operating a Fund.

Barclays U.S. Aggregate Bond Index — a widely recognized unmanaged market-weighted index, is comprised ofinvestment-grade corporate bonds rated BBB or better, mortgages and U.S. Treasury and U.S. Government agencyissues with at least one year to maturity.

Barclays U.S. Corporate High Yield 2% Issuer Capped Index — an unmanaged index comprised of issues that meetthe following criteria: at least $150 million par value outstanding; maximum credit rating of Ba1; at least one year tomaturity; and no issuer represents more than 2% of the index.

Barclays U.S. Government/Mortgage Index — measures debt issued by the U.S. Government, and its agencies, aswell as mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae and Freddie Mac.

Barclays U.S. Mortgage-Backed Securities Index — a widely recognized unmanaged index that includes themortgage-backed pass through securities of the Ginnie Mae, Fannie Mae and Freddie Mac that meet certain maturityand liquidity criteria.

BofA Merrill Lynch Current 5-Year U.S. Treasury Index — an unmanaged index designed to track the total return ofthe current coupon five-year U.S. Treasury bond.

Citigroup Non-U.S. Dollar World Government Bond Index — an unmanaged, market capitalization-weighted index thattracks 22 government bond indices, excluding the United States.

Citigroup World Government Bond Index (hedged into USD) — a market capitalization weighted bond index consistingof government bond markets of 23 countries, including the United States.

Contract — the Fund offers its shares only to participating insurance companies. These insurance companies writevariable annuity and/or variable life insurance contracts that allow the contract owner to choose the Fund as aninvestment option. The contract owner does not become a Fund shareholder.

Distribution Fees — fees used to support a Fund’s marketing and distribution efforts, such as compensating financialprofessionals and other financial intermediaries, advertising and promotion.

FTSE World Index — this unmanaged market capitalization-weighted Index is comprised of 2,949 equities from 47countries in 4 regions, including the United States.

FTSE World (ex US) Index — an unmanaged, capitalization-weighted index comprised of 2,320 companies in 46countries, excluding the United States.

Management Fee — a fee paid to BlackRock for managing the Fund.

MSCI All Country World Index — a free float-adjusted market capitalization weighted index, calculated by MorganStanley Capital International, that is designed to measure the equity market performance of developed and emergingmarkets. The index consists of 45 country indexes comprising 24 developed and 21 emerging market country indexes.

MSCI All Country World Index Ex-U.S. — is a market capitalization weighted index maintained by MSCI, Inc. that isdesigned to provide a broad measure of stock performance throughout the world, with the exception of U.S.-basedcompanies. The MSCI All Country World Index Ex-U.S. includes both developed and emerging markets.

Other Expenses — include accounting, transfer agency, custody, professional fees and registration fees.

Reference Benchmark — an unmanaged weighted index comprised as follows: 36% of the S&P 500 Index; 24% FTSEWorld (ex US) Index; 24% BofA Merrill Lynch Current 5-Year U.S. Treasury Index; and 16% Citigroup Non-US DollarWorld Government Bond Index.

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Russell 1000T Index — an unmanaged broad-based index that measures the performance of the 1,000 largestcompanies in the Russell 3000T Index, which represents approximately 92% of the total market capitalization of theRussell 3000T Index.

Russell 1000T Growth Index — a subset of the Russell 1000T Index that consists of those Russell 1000T securitieswith higher price-to-book ratios and higher forecasted growth values.

Russell 1000T Value Index — a subset of the Russell 1000T Index that consists of those Russell 1000T securitieswith lower price-to-book ratios and lower expected growth values

Russell 2000T Index — The Russell 2000 Index is a subset of the Russell 3000T Index representing approximately10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based ona combination of their market cap and current index membership.

S&P 500 Index — this unmanaged index covers 500 leading companies and captures approximately 80% coverage ofavailable market capitalization. S&P 500 is a registered trademark of The McGraw-Hill Companies.

S&P SmallCap 600 Value Index — a subset of the S&P 600 Index that consists of those stocks in the S&P 600 Indexexhibiting the strongest value characteristics.

Service Fees — fees used to compensate securities dealers and other financial intermediaries for certain shareholderservicing activities.

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For More InformationFunds and Service Providers

THE FUNDSBlackRock Variable Series Funds, Inc.100 Bellevue ParkwayWilmington, Delaware 19809

Written Correspondence:P.O. Box 9819Providence, Rhode Island 02940-8019

Overnight Mail:4400 Computer DriveWestborough, Massachusetts 01588

(800) 441-7762

MANAGERBlackRock Advisors, LLC100 Bellevue ParkwayWilmington, Delaware 19809

SUB-ADVISERSBlackRock Financial Management, Inc.55 East 52nd StreetNew York, New York 10055

BlackRock Investment Management, LLC1 University Square DrivePrinceton, New Jersey 08540-6455

BlackRock International LimitedExchange Place One1 Semple StreetEdinburgh, EH3 8BL, United Kingdom

BlackRock Asset Management North Asia Limited16/F, 2 Queen’s RoadCheung Kong CenterHong Kong

BlackRock (Singapore) Limited20 Anson Road #18-01079912 Singapore

TRANSFER AGENTBNY Mellon Investment Servicing (US) Inc.301 Bellevue ParkwayWilmington, Delaware 19809

INDEPENDENT REGISTERED PUBLICACCOUNTING FIRMDeloitte & Touche LLP1700 Market StreetPhiladelphia, Pennsylvania 19103

ACCOUNTING SERVICES PROVIDERBNY Mellon Investment Servicing (US) Inc.301 Bellevue ParkwayWilmington, Delaware 19809

DISTRIBUTORBlackRock Investments, LLC40 East 52nd StreetNew York, New York 10022

CUSTODIANSThe Bank of New York MellonOne Wall StreetNew York, New York 10286

Brown Brothers Harriman & Co.140 Water StreetBoston, Massachusetts 02109

COUNSELWillkie Farr & Gallagher LLP787 Seventh AvenueNew York, New York 10019-6099

1 For BlackRock Global Allocation V.I. Fund, BlackRock International V.I. Fund, and BlackRock Large Cap Growth V.I. Fund.

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Additional Information

This prospectus contains important information you shouldknow before investing, including information about risks.Please read it before you invest and keep it for futurereference. More information about the Funds is availableat no charge upon request. This information includes:

Annual/Semi-Annual ReportsThese reports contain additional information about each ofthe Fund’s investments. The annual report describes eachFund’s performance, lists portfolio holdings, anddiscusses recent market conditions, economic trends andFund investment strategies that significantly affected aFund’s performance for the last fiscal year.

Statement of Additional Information (SAI)A Statement of Additional Information, dated May 1, 2014has been filed with the Securities and ExchangeCommission (“SEC”). The SAI, which includes additionalinformation about each Fund, may be obtained free ofcharge, along with the Fund’s annual and semi-annualreports, by calling (800) 441-7762 or visitingwww.blackrock.com/prospectus/insurance. The SAI, assupplemented from time to time, is incorporated byreference into this prospectus.

BlackRock Investor ServicesRepresentatives are available to discuss mutual fundprospectuses, literature, programs and services available.Hours: 8:00 a.m. to 6:00 p.m. (Eastern time),Monday-Friday. Call: (800) 441-7762.

Purchases and RedemptionsCall your financial professional or BlackRock InvestmentServices at (800) 441-7762.

World Wide WebGeneral Fund information and specific Fund performance,including the SAI and annual/semi-annual reports, mutualfund prospectuses and literature, can be obtained bycalling (800) 441-7762.

Written CorrespondenceBlackRock Variable Series Funds, Inc.PO Box 9819Providence, Rhode Island 02940-8019

Overnight MailBlackRock Variable Series Funds, Inc.4400 Computer DriveWestborough, Massachusetts 01588

Internal Wholesalers/Broker Dealer SupportAvailable on any business day to support investmentprofessionals. Call: (800) 882-0052

Portfolio Characteristics and HoldingsA description of each Fund’s policies and proceduresrelated to disclosure of portfolio characteristics andholdings is available in the SAI.

For information about portfolio holdings andcharacteristics, BlackRock fund shareholders andprospective investors may call (800) 882-0052.

Securities and Exchange CommissionYou may also view and copy public information abouteach Fund, including the SAI, by visiting the EDGARdatabase on the SEC’s website (http://www.sec.gov) orthe SEC’s Public Reference Room in Washington, D.C.Copies of this information can be obtained, for aduplicating fee, by electronic request at the followinge-mail address: [email protected], or by writing to thePublic Reference Room of the SEC, Washington, D.C.20549. Information about obtaining documents on theSEC’s website without charge may be obtained by calling(800) SEC-0330.

You should rely only on the information contained in thisprospectus. No one is authorized to provide you withinformation that is different from information contained inthis prospectus.

The Securities and Exchange Commission and theCommodity Futures Trading Commission have not approvedor disapproved these securities or passed upon theadequacy of this Prospectus. Any representation to thecontrary is a criminal offense.

BLACKROCK VARIABLE SERIES FUNDS, INC.INVESTMENT COMPANY ACT FILE NO. 811-03290

PRO-VAR-0514

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TRANSAMERICA AEGON U.S. GOVERNMENT SECURITIES VPSummary Prospectus

May 1, 2014Class Initial & Service& Ticker Not Applicable

This summary prospectus is designed to provide shareholders with key portfolio information in a clear and conciseformat. Before you invest, you may want to review the portfolio’s prospectus, which contains more information about theportfolio and its risks. You can find the portfolio’s prospectus and other information about the portfolio, including theportfolio’s statement of additional information and most recent reports to shareholders, online atwww.transamericaseriestrust.com. You can also get this information at no cost by calling 866-414-6349 or by sending ane-mail request to [email protected], or from your financial professional. The portfolio’s prospectus,dated May 1, 2014, and statement of additional information, dated May 1, 2014, as supplemented from time to time, andthe independent registered public accounting firm’s report and financial statements in the portfolio’s annual report toshareholders, dated December 31, 2013, are incorporated by reference into this summary prospectus.

Investment Objective: Seeks to provide as high a level of total return as is consistent with prudent investmentstrategies.

Fees and Expenses: This table describes the fees and expenses that you may pay if you buy and hold portfolio shares,but it does not reflect any charges that are, or may be, imposed under your variable life insurance policy or variableannuity contract. If such charges were reflected, fees would be higher.

Shareholder Fees (fees paid directly from your investment)Class of Shares

Initial ServiceMaximum sales charge (load) imposed on purchases (as a percentage of offering price) None NoneMaximum deferred sales charge (load) (as a percentage of purchase price or redemptionproceeds, whichever is lower) None None

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of yourinvestment)

Class of SharesInitial Service

Management fees 0.55% 0.55%Distribution and service (12b-1) fees 0.00% 0.25%Other expenses 0.07% 0.07%Total annual fund operating expenses 0.62% 0.87%

Example: This Example is intended to help you compare the cost of investing in the portfolio with the cost of investingin other mutual funds. The Example assumes that you invest $10,000 in the portfolio for the time periods indicated andthen redeem all shares at the end of those periods. The Example also assumes that your investment has a 5% return eachyear and that the portfolio’s operating expenses remain the same. The Example does not reflect charges that are, or may be,imposed under your variable life insurance policy or variable annuity contract. If such charges were reflected, costs wouldbe higher. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Share Class 1 year 3 years 5 years 10 yearsInitial $63 $231 $413 $ 940Service $89 $278 $482 $1,073

Portfolio Turnover: The portfolio pays transaction costs, such as commissions, when it buys and sells securities (or“turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which arenot reflected in annual portfolio operating expenses or in the Example, affect the portfolio’s performance.

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During the most recent fiscal year, the portfolio turnover rate for the portfolio was 38% of the average value of itsportfolio.

Principal Investment Strategies: The portfolio’s sub-adviser, Aegon USA Investment Management, LLC (the“sub-adviser”), invests, under normal circumstances, at least 80% of the portfolio’s assets (plus the amount of borrowings,if any, for investment purposes) in U.S. government debt obligations, or obligations guaranteed by U.S. governmentagencies or government sponsored entities and mortgage-backed securities issued or guaranteed by the U.S. government,its agencies or government-sponsored entities. These securities include:

• U.S. Treasury obligations

• Obligations issued by or guaranteed by U.S. government agencies or government-sponsored entities. Obligationsguaranteed by U.S. government agencies or government-sponsored entities include issues bynon-government-sponsored entities (like financial institutions) that carry direct guarantees from U.S. governmentagencies as part of government initiatives in response to the market crisis or otherwise

• Mortgage-backed securities guaranteed by Ginnie Mae or other U.S. government agencies or government-sponsoredentities such as Sallie Mae or Fannie Mae

• Collateralized mortgage obligations issued by private issuers for which the underlying mortgage-backed securitiesserving as collateral are backed by the U.S. government or its agencies and government-sponsored entities

The weighted average duration of the portfolio will generally range from three to seven years.

The portfolio may invest up to 20% of its total assets in high yield debt securities, debt securities of foreign issuers indeveloped countries, U.S. dollar denominated and non-U.S. dollar denominated obligations of U.S. banks and foreignbanks, and foreign sovereign debt of developed countries. The portfolio may also invest in investment grade corporatebonds, short-term corporate debt securities, asset backed securities, commercial mortgage backed securities,non-government guaranteed mortgage backed securities, non-mortgage-backed securities, zero coupon bonds andmortgage derivatives.

The portfolio invests in debt obligations that the sub-adviser believes offer attractive yields and are undervalued relative toissues of similar credit quality and interest rate sensitivity. In choosing securities, the sub-adviser uses a combination ofquantitative and fundamental research, including analysis of the creditworthiness of issuers and the rates of interest offeredby various issuers.

The portfolio’s sub-adviser may also engage in options, futures and forward transactions and interest rate swaptransactions to efficiently manage the portfolio’s currency exposure and interest rate exposure, as well as to hedge theportfolio’s investment against adverse changes in interest rates. The portfolio may also enter into credit default swaptransactions in an attempt to manage portfolio risk. The portfolio may also purchase securities on a when-issued, delayeddelivery or forward commitment basis.

Under adverse or unstable market, economic or political conditions, the portfolio may take temporary defensive positionsin cash and short-term debt securities without limit. During periods of defensive investing, it will be more difficult for theportfolio to achieve its objective.

Principal Risks: Risk is inherent in all investing. Many factors affect the portfolio’s performance. There is no assurancethe portfolio will meet its investment objective. The value of your investment in the portfolio, as well as the amount ofreturn you receive on your investment, may fluctuate significantly. You may lose part or all of your investment in theportfolio or your investment may not perform as well as other similar investments. The following is a summary descriptionof principal risks (in alphabetical order) of investing in the portfolio. You may lose money if you invest in this portfolio.

• Active Trading – The portfolio is actively managed and may purchase and sell securities without regard to thelength of time held. Active trading may have a negative impact on performance by increasing transaction costs andmay generate greater amounts of net short-term capital gains, which, for shareholders holding shares in taxableaccounts, would be subject to tax at ordinary income tax rates upon distribution.

• Cash Management and Defensive Investing – The value of investments held by the portfolio for cashmanagement or defensive investing purposes can fluctuate. Like other fixed income securities, cash and cashequivalent securities are subject to risk, including market, interest rate and credit risk. If the portfolio holds cash

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uninvested, the portfolio will be subject to the credit risk of the depository institution holding the cash, it will not earnincome on the cash and the portfolio’s yield will go down. To the extent that the portfolio’s assets are used for cashmanagement or defensive investing purposes, it may not achieve its objective.

• Credit – If an issuer or guarantor of a security held by the portfolio or a counterparty to a financial contract with theportfolio defaults or is downgraded, or is perceived to be less creditworthy, or if the credit quality or value of anyunderlying assets declines, the value of your investment will decline. Below investment grade, high-yield debtsecurities (commonly known as “junk bonds”) have a higher risk of default or are already in default and areconsidered speculative. Subordinated securities are more likely to suffer a credit loss than non-subordinated securitiesof the same issuer and will be disproportionately affected by a default, downgrade or perceived decline increditworthiness.

• Currency – The value of the portfolio’s securities denominated in foreign currencies fluctuates as the rates ofexchange between those currencies and the U.S. dollar change. Currency conversion costs and currency fluctuationscould reduce or eliminate investment gains or add to investment losses. Currency exchange rates can be volatile andare affected by, among other factors, the general economics of a country, the actions of the U.S. and foreigngovernments or central banks, the imposition of currency controls, and speculation.

• Derivatives – Using derivatives exposes the portfolio to additional risks and can increase portfolio losses and reduceopportunities for gains when market prices, interest rates or the derivatives themselves behave in a way not anticipatedby the portfolio. Using derivatives also can have a leveraging effect and increase portfolio volatility. The portfolio mayalso have to sell assets at inopportune times to satisfy its obligations. Derivatives may be difficult to sell, unwind orvalue, and the counterparty may default on its obligations to the portfolio. The portfolio’s investments in derivativeinstruments may involve a small investment relative to the amount of investment exposure assumed and may result inlosses exceeding the amounts invested in those instruments. Certain derivatives have the potential for unlimited loss,regardless of the size of the initial investment. The U.S. government is in the process of adopting and implementingregulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reportingrequirements. The ultimate impact of the regulations remains unclear. Additional regulation of derivatives may makethem more costly, may limit their availability, may disrupt markets or may otherwise adversely affect their value orperformance.

• Expenses – Your actual costs of investing in the portfolio may be higher than the expenses shown in this prospectusfor a variety of reasons. For example, expense ratios may be higher than those shown if overall net assets decrease. Netassets are more likely to decrease and portfolio expense ratios are more likely to increase when markets are volatile.

• Extension – If interest rates rise, repayments of fixed income securities may occur more slowly than anticipated bythe market. This may drive the prices of these securities down because their interest rates are lower than the currentinterest rate and they remain outstanding longer.

• Fixed-Income Securities – The market prices of fixed-income securities may fall due to general marketconditions, such as real or perceived adverse economic or political conditions, inflation, changes in interest rates, lackof liquidity in the bond markets or adverse investor sentiment. In addition, the market value of a fixed income securitymay decline if the issuer or other obligor of the security fails to pay principal and/or interest, otherwise defaults or hasits credit rating downgraded or is perceived to be less creditworthy, or the credit quality or value of any underlyingassets declines. When market prices fall, the value of your investment will go down. A rise in rates tends to have agreater impact on the prices of longer term or duration securities.

• Focused Investing – To the extent the portfolio invests in one or more countries, regions, sectors or industries, orin a limited number of issuers, the portfolio will be more susceptible to negative events affecting those countries,regions, sectors, industries or issuers. Local events, such as political upheaval, financial troubles, or natural disastersmay disrupt a country’s or region’s securities markets. Geographic risk is especially high in emerging markets.

• Foreign Investments – Investing in securities of foreign issuers or issuers with significant exposure to foreignmarkets involves additional risk. Foreign countries may have markets that are less liquid, less regulated and morevolatile than U.S. markets. The value of the portfolio’s investments may decline because of factors affecting theparticular issuer as well as foreign markets and issuers generally, such as unfavorable government actions, political orfinancial instability or other adverse economic or political developments. Lack of information and weaker accountingstandards also may affect the value of these securities.

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• High-Yield Debt Securities – High-yield debt securities, commonly referred to as “junk bonds,” are securities thatare rated below “investment grade” (that is, securities rated below Baa/BBB) or, if unrated, determined to be belowinvestment grade by the sub-adviser. Changes in interest rates, the market’s perception of the issuers and thecreditworthiness of the issuers may significantly affect the value of these bonds. Junk bonds are consideredspeculative, have a higher risk of default, tend to be less liquid and may be more difficult to value than higher gradesecurities. Junk bonds tend to be volatile and more susceptible to adverse events and negative sentiments.

• Interest Rate – Interest rates in the United States recently have been historically low and are expected to rise. Thevalue of fixed income securities generally goes down when interest rates rise, and therefore the value of yourinvestment in the portfolio may also go down. Debt securities have varying levels of sensitivity to changes in interestrates. A rise in rates tends to have a greater impact on the prices of longer term or duration securities.

• Manager – The sub-adviser to the portfolio actively manages the portfolio’s investments. Consequently, the portfoliois subject to the risk that the methods and analyses employed by the sub-adviser may not produce the desired results.This could cause the portfolio to lose value or its results to lag relevant benchmarks or other funds with similarobjectives.

• Market – The market prices of the portfolio’s securities may go up or down, sometimes rapidly or unpredictably, dueto general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes ininterest rates or currency rates, lack of liquidity in the markets or adverse investor sentiment. Adverse marketconditions may be prolonged and may not have the same impact on all types of securities. Market prices of securitiesalso may go down due to events or conditions that affect particular sectors, industries or issuers. When market pricesfall, the value of your investment will go down. The portfolio may experience a substantial or complete loss on anyindividual security. The global financial crisis that began in 2008 has caused a significant decline in the value andliquidity of many securities and unprecedented volatility in the markets. Governmental and non-governmental issuers(notably in Europe) have defaulted on, or been forced to restructure their debts; and many other issuers have faceddifficulties obtaining credit or refinancing existing obligations. These market conditions may continue, worsen orspread, including in the United States, Europe and elsewhere. Further defaults or restructurings by governments andothers of their debt could have additional adverse effects on economies, financial markets and asset valuations aroundthe world. In response to the crisis, the U.S. government and the Federal Reserve, as well as certain foreigngovernments and their central banks have taken steps to support financial markets, including by keeping interest rateslow. More recently, the Federal Reserve has reduced its market support activities. Further reduction or withdrawal ofthis support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeedingcould negatively affect financial markets generally and increase market volatility as well as reduce the value andliquidity of certain securities. This environment could make identifying investment risks and opportunities especiallydifficult for the sub-adviser. Whether or not the portfolio invests in securities of issuers located in or with significantexposure to countries experiencing economic and financial difficulties, the value and liquidity of the portfolio’sinvestments may be negatively affected. In addition, policy and legislative changes in the United States and in othercountries are affecting many aspects of financial regulation. The impact of these changes on the markets, and thepractical implications for market participants, may not be fully known for some time.

• Mortgage-Related and Asset-Backed Securities – The value of mortgage-related and asset-backed securitieswill be influenced by factors affecting the housing market and the assets underlying such securities. As a result, duringperiods of declining asset values, difficult or frozen credit markets, swings in interest rates, or deteriorating economicconditions, mortgage-related and asset-backed securities may decline in value, face valuation difficulties, becomemore volatile and/or become illiquid. Mortgage-backed securities may be issued by private issuers, bygovernment-sponsored entities such as Fannie Mae or Freddie Mac or by agencies of the U.S. government, such asGinnie Mae. Mortgage-backed securities represent direct or indirect participations in, or are collateralized by andpayable from, mortgage loans secured by real property. Unlike mortgage-related securities issued or guaranteed byagencies of the U.S. government or government-sponsored entities, mortgage-related securities issued by privateissuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement),and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics.Asset-backed securities represent participations in, or are secured by and payable from, assets such as installmentsales or loan contracts, leases, credit card receivables and other categories of receivables. The value ofmortgage-backed and asset-backed securities may be affected by changes in credit quality or value of the mortgageloans or other assets that support the securities. Mortgage-backed and asset-backed securities are subject to

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prepayment or call and extension risks. Some of these securities may receive little or no collateral protection from theunderlying assets. The risk of default is generally higher in the case of mortgage-backed investments that includeso-called “sub-prime” mortgages. The structure of some of these securities may be complex and there may be lessinformation available than for other types of debt securities. Upon the occurrence of certain triggering events ordefaults, the portfolio may become the holder of underlying assets at a time when those assets may be difficult to sellor may be sold only at a loss.

• Portfolio Selection – The value of your investment may decrease if the sub-adviser’s judgment about the quality,relative yield, value or market trends affecting a particular security or issuer, industry, sector, region or marketsegment, or about the economy or interest rates is incorrect.

• Prepayment or Call – Many issuers have a right to prepay their securities. If interest rates fall, an issuer mayexercise this right. If this happens, the portfolio will not benefit from the rise in market price that normallyaccompanies a decline in interest rates, and will be forced to reinvest prepayment proceeds at a time when yields onsecurities available in the market are lower than the yield on the prepaid security. The portfolio also may lose anypremium it paid on the security.

• Sovereign Debt – Sovereign debt instruments are subject to the risk that the governmental entity may delay or failto pay interest or repay principal on its sovereign debt. If a governmental entity defaults, it may ask for more time inwhich to pay or for further loans. There may be no established legal process for collecting sovereign debt that agovernment does not pay, nor are there bankruptcy proceedings through which all or part of the sovereign debt that agovernmental entity has not repaid may be collected.

• U.S. Government Agency Obligations – Government agency obligations have different levels of credit supportand, therefore, different degrees of credit risk. Securities issued by agencies and instrumentalities of the U.S.government that are supported by the full faith and credit of the United States generally present a lesser degree ofcredit risk than securities issued by agencies and instrumentalities sponsored by the U.S. government that aresupported only by the issuer’s right to borrow from the U.S. Treasury and securities issued by agencies andinstrumentalities sponsored by the U.S. government that are supported only by the credit of the issuing agencies.Although the U.S. government has provided financial support to the Federal National Mortgage Association (FannieMae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) in the past, there can be no assurance that itwill support these or other government sponsored entities in the future.

• Zero Coupon Bonds – Zero coupon bonds pay no interest during the life of the obligation but trade at pricesbelow their stated maturity value. Although these securities lock in a rate of return to maturity, they may be subject togreater fluctuations in market value than securities that pay interest periodically.

Performance: The bar chart and the table below provide some indication of the risks of investing in the portfolio. Thebar chart shows how the portfolio’s performance has varied from year to year. The table shows how the portfolio’s averageannual total returns for different periods compare to the returns of a broad measure of market performance. Theperformance calculations do not reflect any charges that are, or may be, imposed under your variable life insurance policyor variable annuity contract. If such charges were reflected, performance would be lower. Absent any limitation of theportfolio’s expenses, total returns would be lower.

As with all mutual funds, past performance is not a prediction of future results. Updated performance information isavailable on our website at www.transamericaseriestrust.com/content/Performance.aspx or by calling 1-888-233-4339.

Annual Total Returns (calendar years ended December 31) - Initial Class

2013201220112010200920082007200620052004

5.06%

-2.23%

3.30%2.23%

3.27%

6.05%7.66%

4.40%4.47%

7.69%

5

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Quarter Ended ReturnBest Quarter: 12/31/2008 5.07%Worst Quarter: 06/30/2004 -2.83%

Average Annual Total Returns (periods ended December 31, 2013)

1 Year 5 Years 10 Years Inception Date

Initial Class -2.23% 3.82% 4.15% 05/13/1994Service Class -2.49% 3.56% 3.89% 05/01/2003Barclays U.S. Government Index (reflects nodeduction for fees, expenses or taxes) -2.60% 2.26% 4.14%

Management:

Investment Adviser: Sub-Adviser:

Transamerica Asset Management, Inc. Aegon USA Investment Management, LLC

Portfolio Managers:

Calvin Norris, CFA, Portfolio Manager since 2014

Tyler Knight, Portfolio Manager since 2014

Charles Foster, CFA, Portfolio Manager since 2014

Doug Weih, Portfolio Manager since 2011

Purchase and Sale of Portfolio Shares: Shares of the portfolio may only be purchased or redeemed throughvariable life insurance policies and variable annuity contracts offered by the separate accounts of participating lifeinsurance companies. Please refer to the corresponding prospectus of the policy or annuity contract that you have chosenfor more information about the terms of the offering. Shares of the portfolio may also be sold to the asset allocationportfolios and to other funds of funds.

The portfolio does not have any initial or subsequent investment minimums. However, your insurance company mayimpose investment minimums.

The portfolio will not pay any 12b-1 fees on Initial Class shares through May 1, 2015. The maximum 12b-1 fee on InitialClass shares is 0.15%. The portfolio reserves the right to pay such fees after that date.

Tax Information: Distributions made by the portfolio to an insurance company separate account, and exchanges andredemptions of portfolio shares made by the separate account, ordinarily do not cause the owners of insurance policies andannuity contracts invested in the separate account to recognize income or gain for federal income tax purposes. Pleaserefer to the corresponding prospectus of the policy or annuity contract that you have chosen for more informationregarding the tax consequences of your investment.

Payments to Broker-Dealers and Other Financial Intermediaries: If you purchase the portfolio through abroker-dealer or other financial intermediary (such as a bank or insurance company), the portfolio and/or its affiliates maypay the intermediary for the sale of portfolio shares and related services. These payments may create a conflict of interestby influencing the broker-dealer or other intermediary and your salesperson to recommend the portfolio over anotherinvestment. Ask your salesperson or visit your financial intermediary’s website for more information.

6SPST0514AUGS

TAEUSG-6

TRANSAMERICA ALLIANCEBERNSTEIN DYNAMIC ALLOCATION VPSummary Prospectus



Investment Objective: Seeks capital appreciation and current income.






Management fees 0.73% 0.73%Distribution and service (12b-1) fees 0.00% 0.25%Other expenses 0.13% 0.13%Acquired fund fees and expenses 0.01% 0.01%Total annual fund operating expenses1 0.87% 1.12%

1 Total annual fund operating expenses do not correlate to the ratios of expenses to average net assets in the financial highlights table, which do not include acquired(i.e., underlying) funds’ fees and expenses.


Share Class 1 year 3 years 5 years 10 yearsInitial $ 89 $310 $549 $1,234Service $114 $356 $617 $1,363

1

TABDA-1



Principal Investment Strategies: Under normal market conditions, the portfolio’s sub-adviser, AllianceBernstein L.P.(the “sub-adviser”), will allocate substantially all of the portfolio’s assets among individual securities, underlyingexchange traded funds (“ETFs”), forwards, swaps, futures and options to achieve targeted exposure to domestic equities,international equities, domestic bonds, international bonds and foreign currency. The sub-adviser expects that, over thelong-term, the portfolio’s allocation will average approximately 35% in global equities and 65% in U.S. fixed incomesecurities.

The portfolio utilizes a Dynamic Asset Allocation strategy, which makes short-term adjustments to the portfolio’s assetmix utilizing the sub-adviser’s research on various risk and return factors, in an effort to better trade-off risk and return asmarket and economic conditions change. The approach seeks to generate improved returns per unit of volatility, ascompared to those from fixed weight or rules-based models. Further, the sub-adviser believes that a greater focus onshort-term dynamics can improve the distribution of returns through lower volatility and reduction of “tail events” (i.e.mitigate both extreme losses and outsized gains). The portfolio’s asset allocation exposures may be implemented andadjusted either through transactions in individual securities, ETFs or through derivatives.

The portfolio will invest in both growth and value equity securities, which, at the time of investment, have marketcapitalizations within the range of market capitalizations of companies appearing in the Morgan Stanley CapitalInternational World Index (“MSCI World”). The market capitalizations of companies appearing in the MSCI World rangedfrom $1 billion to $434 billion as of December 31, 2013.

Under normal circumstances, the portfolio will adhere to the following guidelines:

• Investments in equity securities are limited to 45% of the portfolio’s assets at any given time.

• Investments in foreign equity securities are limited to 90% of the portfolio’s equity allocation at any given time.

• Investments in high-yield bonds are limited to 3% of the portfolio’s assets at any given time.

• Investments in emerging markets are limited to 3% of the portfolio’s assets at any given time.

• Investments in foreign fixed-income securities are limited to 5% of the portfolio’s assets at any given time.

• Investments in ETFs are limited to 10% of the portfolio’s assets at any given time.

Instead of investing directly in particular securities, the portfolio may use derivatives, including forwards, swaps, optionsand futures for hedging and non-hedging purposes. These instruments are taken into account when determiningcompliance with the portfolio’s target allocations and guidelines described above. The portfolio may invest in foreignfixed-income securities.

Under adverse or unstable market, economic or political conditions, the portfolio may take temporary defensive positionsdirectly, or through ETFs, in cash and short-term debt securities without limit. During periods of defensive investing, itwill be more difficult for the portfolio to achieve its objective.



• Cash Management and Defensive Investing – The value of investments held by the portfolio for cashmanagement or defensive investing purposes can fluctuate. Like other fixed income securities, cash and cash

2

TABDA-2

equivalent securities are subject to risk, including market, interest rate and credit risk. If the portfolio holds cashuninvested, the portfolio will be subject to the credit risk of the depository institution holding the cash, it will not earnincome on the cash and the portfolio’s yield will go down. To the extent that the portfolio’s assets are used for cashmanagement or defensive investing purposes, it may not achieve its objective.



• Currency Hedging – The portfolio may hedge its currency risk using currency futures, forwards or options.However, these instruments may not always work as intended, and a portfolio may be worse off than if it had not useda hedging instrument.


• Early Close/Late Close/Trading Halt – An exchange or market may close early, close late or issue trading haltson specific securities, or the ability to buy or sell certain securities or derivatives may be restricted, which may resultin the portfolio being unable to buy or sell certain securities or derivatives. In such circumstances, the portfolio maybe unable to rebalance its portfolio, may be unable to accurately price its investments and/or may incur substantialtrading losses.

• Emerging Markets – Investments in the securities of issuers located in or principally doing business in emergingmarkets are subject to foreign investments risks. These risks are greater for investments in issuers in emerging marketcountries. Emerging market countries tend to have economic, political and legal systems that are less fully developedand are less stable than those of more developed countries. Low trading volumes may result in a lack of liquidity andin extreme price volatility.

• Equity Securities – Equity securities represent an ownership interest in an issuer, rank junior in a company’scapital structure and consequently may entail greater risk of loss than debt securities. Equity securities includecommon and preferred stocks. Stock markets are volatile. The price of equity securities fluctuates based on changes ina company’s financial condition and overall market and economic conditions. If the market prices of the equitysecurities owned by the portfolio fall, the value of your investment in the portfolio will decline.


3

TABDA-3




• Growth Stocks – Returns on growth stocks may not move in tandem with returns on other categories of stocks orthe market as a whole. Growth stocks may be particularly susceptible to larger price swings or to adversedevelopments. Growth stocks as a group may be out of favor and underperform the overall equity market for a longperiod of time, for example, while the market favors “value” stocks.



• Liquidity – Some assets held by the portfolio may be impossible or difficult to sell, particularly during times ofmarket turmoil. These illiquid assets may also be difficult to value. If the portfolio is forced to sell an illiquid asset tomeet redemption requests or other cash needs, the portfolio may be forced to sell at a loss.


• Market – The market prices of the portfolio’s securities may go up or down, sometimes rapidly or unpredictably, dueto general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes ininterest rates or currency rates, lack of liquidity in the markets or adverse investor sentiment. Adverse marketconditions may be prolonged and may not have the same impact on all types of securities. Market prices of securitiesalso may go down due to events or conditions that affect particular sectors, industries or issuers. When market pricesfall, the value of your investment will go down. The portfolio may experience a substantial or complete loss on anyindividual security. The global financial crisis that began in 2008 has caused a significant decline in the value andliquidity of many securities and unprecedented volatility in the markets. Governmental and non-governmental issuers(notably in Europe) have defaulted on, or been forced to restructure their debts; and many other issuers have faceddifficulties obtaining credit or refinancing existing obligations. These market conditions may continue, worsen orspread, including in the United States, Europe and elsewhere. Further defaults or restructurings by governments andothers of their debt could have additional adverse effects on economies, financial markets and asset valuations aroundthe world. In response to the crisis, the U.S. government and the Federal Reserve, as well as certain foreign

4

TABDA-4

governments and their central banks have taken steps to support financial markets, including by keeping interest rateslow. More recently, the Federal Reserve has reduced its market support activities. Further reduction or withdrawal ofthis support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeedingcould negatively affect financial markets generally and increase market volatility as well as reduce the value andliquidity of certain securities. This environment could make identifying investment risks and opportunities especiallydifficult for the sub-adviser. Whether or not the portfolio invests in securities of issuers located in or with significantexposure to countries experiencing economic and financial difficulties, the value and liquidity of the portfolio’sinvestments may be negatively affected. In addition, policy and legislative changes in the United States and in othercountries are affecting many aspects of financial regulation. The impact of these changes on the markets, and thepractical implications for market participants, may not be fully known for some time.



• Small and Medium Capitalization Companies – The portfolio will be exposed to additional risks as a result ofits investments in the securities of small or medium capitalization companies. Small or medium capitalizationcompanies may be more at risk than large capitalization companies because, among other things, they may havelimited product lines, operating history, market or financial resources, or because they may depend on a limitedmanagement group. The prices of securities of small and medium capitalization companies generally are more volatilethan those of large capitalization companies and are more likely to be adversely affected than large capitalizationcompanies by changes in earnings results and investor expectations or poor economic or market conditions. Securitiesof small and medium capitalization companies may underperform large capitalization companies, may be harder tosell at times and at prices the portfolio managers believe appropriate and may offer greater potential for losses.

• Tactical Asset Allocation – Tactical asset allocation is an investment strategy that actively adjusts a portfolio’sasset allocation. The portfolio’s tactical asset management discipline may not work as intended. The portfolio may notachieve its objective and may not perform as well as other funds using other asset management styles, including thosebased on fundamental analysis (a method of evaluating a security that entails attempting to measure its intrinsic valueby examining related economic, financial and other factors) or strategic asset allocation (a strategy that involvesperiodically rebalancing the portfolio in order to maintain a long-term goal for asset allocation). The sub-adviser’sevaluations and assumptions in selecting underlying funds or individual securities may be incorrect in view of actualmarket conditions, and may result in owning securities that underperform other securities.

• Underlying Exchange Traded Funds – Because the portfolio invests its assets in various underlying ETFs, itsability to achieve its investment objective depends largely on the performance of the underlying ETFs in which itinvests. Each of the underlying ETFs in which the portfolio may invest has its own investment risks, and those riskscan affect the value of the underlying ETFs’ shares and therefore the value of the portfolio’s investments. There can beno assurance that the investment objective of any underlying ETF will be achieved. To the extent that the portfolioinvests more of its assets in one underlying ETF than in another, the portfolio will have greater exposure to the risks ofthat underlying ETF. In addition, the portfolio will bear a pro rata portion of the operating expenses of the underlyingETFs in which it invests.

Equity-based ETFs are subject to risks similar to those of stocks; fixed income-based ETFs are subject to risks similarto those of fixed-income securities. An investment in an ETF generally presents the same primary risks as aninvestment in a conventional fund (i.e., one that is not exchange-traded) that has the same investment objectives,strategies and policies. The price of an ETF can fluctuate up and down, and the portfolio could lose money investingin an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs are subject to the followingrisks that do not apply to conventional funds: (i) the market price of an ETF’s shares may be above or below theshares’ net asset value; (ii) an active trading market for an ETF’s shares may not develop or be maintained; or (iii)

5

TABDA-5

trading of an ETF’s shares may be halted if the listing exchange’s officials deem such action appropriate, the sharesare delisted from the exchange or the activation of market-wide “circuit breakers” (which are tied to large decreases instock prices) halts stock trading generally.


• Value Investing – The prices of securities the sub-adviser believes are undervalued may not appreciate asanticipated or may go down. Value stocks as a group may be out of favor and underperform the overall equity marketfor a long period of time, for example, while the market favors “growth” stocks.

Performance: The bar chart and the table below provide some indication of the risks of investing in the portfolio. Thebar chart shows how the portfolio’s performance has varied from year to year. The table shows how the portfolio’s averageannual total returns for different periods compare to the returns of a broad measure of market performance, as well ascomparison to one or more secondary indices. The performance calculations do not reflect any charges that are, or may be,imposed under your variable life insurance policy or variable annuity contract. If such charges were reflected, performancewould be lower. Absent any limitation of the portfolio’s expenses, total returns would be lower.


Prior to August 16, 2010, the portfolio was named Transamerica Convertible Securities VP, had a different sub-adviser, adifferent investment objective and used different investment strategies. The performance set forth prior to that date isattributable to a previous sub-adviser.


2013201220112010200920082007200620052004

7.18%13.18%

3.88%10.90%

18.63%

-36.87%

9.29%

31.30%

1.81% 6.14%


The Composite Benchmark consists of the following: Barclays U.S. Aggregate Bond Index, 65%; and MSCI World Index,35%.

6

TABDA-6



Initial Class 7.18% 10.70% 4.96% 05/01/2002Service Class 6.89% 10.48% 4.73% 05/01/2003Barclays U.S. Aggregate Bond Index (reflects nodeduction for fees, expenses or taxes) -2.02% 4.44% 4.55%MSCI World Index (reflects no deduction for fees,expenses or taxes) 27.36% 15.68% 7.56%Composite Benchmark (reflects no deduction forfees, expenses or taxes) 7.54% 8.62% 5.91%

Management:


Transamerica Asset Management, Inc. AllianceBernstein L.P.

Portfolio Managers:

Daniel Loewy, CFA, Portfolio Manager since 2010

Vadim Zlotnikov, Portfolio Manager since 2013






7SPST0514ABDYN

TABDA-7

TRANSAMERICA BARROW HANLEY DIVIDEND FOCUSED VPSummary Prospectus



Investment Objective: Seeks total return gained from the combination of dividend yield, growth of dividends andcapital appreciation.






Management fees1 0.66% 0.66%Distribution and service (12b-1) fees 0.00% 0.25%Other expenses 0.07% 0.07%Total annual fund operating expenses 0.73% 0.98%

1 Management fees have been restated to reflect a reduction in advisory fees.




1

TBHDF-1


Principal Investment Strategies: The portfolio’s sub-adviser, Barrow, Hanley, Mewhinney & Strauss, LLC (the“sub-adviser”), deploys an active, strategy that seeks large and middle capitalization U.S.-listed stocks, includingAmerican Depositary Receipts (“ADRs”), which make up a portfolio that generally exhibits the following valuecharacteristics: price/earnings and price/book ratios at or below the market (S&P 500® Index) and dividend yields at orabove the market. In addition, the sub-adviser considers stocks for the portfolio that not only currently pay a dividend, butalso have a consecutive 25-year history of paying cash dividends. The sub-adviser also seeks stocks that have longestablished histories of dividend increases in an effort to ensure that the growth of the dividend stream of the portfolio’sholdings will be greater than that of the market as a whole.

The sub-adviser utilizes a conservative orientation based on the belief that above-average returns can be achieved whiletaking below-average risks. The sub-adviser’s investment approach is based on an underlying philosophy that securitiesmarkets are inefficient and that these inefficiencies can be favorably exploited through adherence to a value-orientedinvestment process dedicated to individual stock selection on a bottom-up basis. Accordingly, the sub-adviser constructs aportfolio of individual stocks, selected on a bottom-up basis, using fundamental analysis. The sub-adviser seeks to identifycompanies that are undervalued and temporarily out-of-favor for reasons it can identify and understand. The sub-adviserdoes not attempt to time the market or rotate in and out of broad market sectors, as it believes that it is difficult, if notimpossible, to add incremental value on a consistent basis by market timing.

The portfolio will generally consist of 35 to 45 stocks with position sizes of 1% to 5% (8% maximum position weighting).If a stock held in the portfolio omits its dividend, the portfolio is not required to immediately sell the stock, but theportfolio will not purchase any stock that does not have a 25-year record of paying cash dividends.

The sub-adviser employs a fully invested strategy. Therefore, under normal market conditions, cash and cash equivalentsare generally less than 5% of the portfolio’s assets.



• Cash Management and Defensive Investing – The value of investments held by the portfolio for cashmanagement or defensive investing purposes can fluctuate. Like other fixed income securities, cash and cashequivalent securities are subject to risk, including market, interest rate and credit risk. If the portfolio holds cashuninvested, the portfolio will be subject to the credit risk of the depository institution holding the cash, it will not earnincome on the cash and the portfolio’s yield will go down. To the extent that the portfolio’s assets are used for cashmanagement or defensive investing purposes, it may not achieve its objective.

• Depositary Receipts – Depositary receipts may be less liquid than the underlying shares in their primary tradingmarket. Any distributions paid to the holders of depositary receipts are usually subject to a fee charged by thedepositary. Holders of depositary receipts may have limited voting rights, and investment restrictions in certaincountries may adversely impact the value of depositary receipts because such restrictions may limit the ability toconvert equity shares into depositary receipts and vice versa. Such restrictions may cause equity shares of theunderlying issuer to trade at a discount or premium to the market price of the depositary receipts.


2

TBHDF-2







• Medium-Capitalization Companies – The portfolio will be exposed to additional risks as a result of itsinvestments in the securities of medium capitalization companies. Investing in medium capitalization companiesinvolves greater risk than is customarily associated with more established companies. The prices of securities ofmedium capitalization companies generally are more volatile and are more likely to be adversely affected by changesin earnings results and investor expectations or poor economic or market conditions. Securities of mediumcapitalization companies may underperform larger capitalization companies, may be harder to sell at times and atprices the portfolio managers believe appropriate and may offer greater potential for losses.

3

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• Valuation – The sales price the portfolio could receive for any particular portfolio investment may differ from theportfolio’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that arevalued using a fair value methodology.




Prior to May 1, 2013, the portfolio was named Transamerica BlackRock Large Cap Value VP, had a different sub-adviser,a different investment objective and used different investment strategies. The performance set forth prior to that date isattributable to a previous sub-adviser.


2013201220112010200920082007200620052004

2.66%11.80%

30.24%18.34% 15.94% 16.92%

4.64%

-33.89%

10.44%13.99%




Initial Class 30.24% 13.48% 7.64% 05/01/1996Service Class 29.93% 13.20% 7.37% 05/01/2003Russell 1000® Value Index (reflects no deduction forfees, expenses or taxes) 32.53% 16.67% 7.58%

4

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Management:


Transamerica Asset Management, Inc. Barrow, Hanley, Mewhinney & Strauss, LLC

Portfolio Managers:

Ray Nixon, Jr., Portfolio Manager since 2013

Brian Quinn, CFA, Portfolio Manager since 2013

Lewis Ropp, Portfolio Manager since 2013






5SPST0514BHDF

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TRANSAMERICA BLACKROCK TACTICAL ALLOCATION VPSummary Prospectus



Investment Objective: Seeks capital appreciation with current income as a secondary objective.






Management fees 0.10% 0.10%Distribution and service (12b-1) fees 0.00% 0.25%Other expenses 0.05% 0.05%Acquired fund fees and expenses 0.75% 0.75%Total annual fund operating expenses1 0.90% 1.15%

1 Total annual fund operating expenses do not correlate to the ratios of expenses to average net assets in the financial highlights table, which do not include acquired(i.e., underlying) funds’ fees and expenses.



1

TBRTA-1



Principal Investment Strategies: The portfolio seeks to achieve this objective by investing its assets in a combinationof underlying Transamerica funds (the “underlying portfolios”).

• Under normal market conditions, the portfolio’s investments in domestic and international equity funds will varybetween 40% and 90% of the portfolio’s net assets, with the remaining portion invested in domestic and internationalfixed-income funds, which may include money market funds. Equity exposure increases with higher 10-year swaprates and lower implied volatility. Equity exposure decreases with lower 10-year swap rates and higher impliedvolatility.

• The portfolio’s target level of equity exposure is determined monthly by a proprietary tactical asset allocation modelbased on specified market factors — the 10-year swap rate and implied volatility.

• The portfolio’s sub-adviser, BlackRock Financial Management, Inc. (the “sub-adviser”), may not vary or override thetarget level equity exposure regardless of their view of the market outlook. Based on the model’s target allocation, thesub-adviser selects among the underlying equity and fixed-income funds and rebalances the portfolio’s assets amongthe underlying portfolios to maintain the target weightings. The sub-adviser may choose to invest a portion of theportfolio’s assets in one or more underlying portfolios which they sub-advise.

• The equity funds may have fixed-income exposure and the fixed-income funds could likewise have equity exposure.Such exposures are not considered by the model and could impact the performance of the underlying portfolios andthe portfolio.

• The portfolio may also invest directly in securities, including up to 10% of its assets in exchange traded funds(“ETFs”), U.S. government securities, short-term commercial paper, cash and cash equivalents.

Each underlying portfolio has its own investment objective, principal investment strategies and investment risks. Thesub-adviser for each underlying portfolio decides which securities to purchase and sell for that underlying portfolio. Theportfolio’s ability to achieve its investment objective depends largely on the performance of the underlying portfolios inwhich it invests. The “Underlying Portfolios” section of the prospectus lists the underlying portfolios currently availablefor investment by the portfolio, provides a summary of their respective investment objectives and principal investmentstrategies, and identifies certain risks of the underlying portfolios.

It is not possible to predict the extent to which the portfolio will be invested in a particular underlying portfolio at anytime. The portfolio may be a significant shareholder in certain underlying portfolios. The sub-adviser may change theportfolio’s asset allocations (consistent with the model) and underlying portfolios at any time without notice toshareholders and without shareholder approval.



• Asset Allocation – The sub-adviser allocates the portfolio’s assets among various underlying portfolios. Theseallocations may be unsuccessful in maximizing the portfolio’s return and/or avoiding investment losses, and maycause the portfolio to underperform.

• Credit – If an issuer or guarantor of a security held by the portfolio or a counterparty to a financial contract with theportfolio defaults or is downgraded, or is perceived to be less creditworthy, or if the credit quality or value of anyunderlying assets declines, the value of your investment will decline. Below investment grade, high-yield debt

2

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securities (commonly known as “junk bonds”) have a higher risk of default or are already in default and areconsidered speculative. Subordinated securities are more likely to suffer a credit loss than non-subordinated securitiesof the same issuer and will be disproportionately affected by a default, downgrade or perceived decline increditworthiness.




• Exchange Traded Funds – Equity-based ETFs are subject to risks similar to those of stocks; fixed income-basedETFs are subject to risks similar to those of fixed-income securities. ETF shares may trade at a premium or discountto net asset value. ETFs are subject to secondary market trading risks. In addition, a portfolio will bear a pro rataportion of the operating expenses of an ETF in which it invests.





3

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• Tactical Asset Allocation – Tactical asset allocation is a dynamic investment strategy that actively adjusts aportfolio’s asset allocation. The portfolio’s tactical asset management discipline may not work as intended. Theportfolio may not achieve its objective and may not perform as well as other funds using other asset managementstyles, including those based on fundamental analysis (a method of evaluating a security that entails attempting tomeasure its intrinsic value by examining related economic, financial and other factors) or strategic asset allocation (a

4

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strategy that involves periodically rebalancing the portfolio in order to maintain a long-term goal for asset allocation).The sub-adviser’s evaluations and assumptions in selecting underlying funds or individual securities may be incorrectin view of actual market conditions, and may result in owning securities that under perform other securities.

• Underlying Portfolios – Because the portfolio invests its assets in various underlying portfolios, its ability toachieve its investment objective depends largely on the performance of the underlying portfolios in which it invests.Each of the underlying portfolios in which the portfolio may invest has its own investment risks, and those risks canaffect the value of the underlying portfolios’ shares and therefore the value of the portfolio’s investments. There canbe no assurance that the investment objective of any underlying portfolio will be achieved. To the extent that theportfolio invests more of its assets in one underlying portfolio than in another, the portfolio will have greater exposureto the risks of that underlying portfolio. In addition, the portfolio will bear a pro rata portion of the operating expensesof the underlying portfolios in which it invests. The “Underlying Portfolios” section of the portfolio’s prospectusidentifies certain risks of each underlying portfolio.

Performance: The bar chart and the table below provide some indication of the risks of investing in the portfolio. Thebar chart shows how the portfolio’s performance has varied from year to year. The table shows how the portfolio’s averageannual total returns for different periods compare to the returns of a broad measure of market performance, as well ascomparison to one or more secondary indices. The performance calculations do not reflect any charges that are, or may be,imposed under your variable life insurance policy or variable annuity contract. If such charges were reflected, performancewould be lower. Absent any limitation of the portfolio’s expenses, total returns would be lower. Index returns are since theinception of the share class.


Annual Total Returns (calendar years ended December 31) - Service Class

11.24%

2013201220112010

3.74%

10.02%12.35%



1 Year Since Inception Inception Date

Initial Class 12.63% 7.13% 05/01/2011Service Class 12.35% 12.58% 05/01/2009Barclays U.S. Aggregate Bond Index (reflects no deduction for fees,expenses or taxes) -2.02% 4.66%MSCI Europe, Australasia, Far East Index (reflects no deduction forfees, expenses or taxes) 23.29% 14.59%Russell 3000® Index (reflects no deduction for fees, expenses ortaxes) 33.55% 20.41%

Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russellindexes. Russell® is a trademark of Russell Investment Group.

5

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Management:


Transamerica Asset Management, Inc. BlackRock Financial Management, Inc.

Portfolio Managers:

Justin Christofel, CFA, Portfolio Manager since 2013

Philip Green, Portfolio Manager since 2009

Sunder Ramkumar, CFA, Portfolio Manager since 2013






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TRANSAMERICA JPMORGAN ENHANCED INDEX VPSummary Prospectus



Investment Objective: Seeks to earn a total return modestly in excess of the total return performance of the S&P 500®

(including the reinvestment of dividends) while maintaining a volatility of return similar to the S&P 500®.










1

TJPEI-1


Principal Investment Strategies: The portfolio’s sub-adviser, J.P. Morgan Investment Management Inc. (the“sub-adviser”), seeks to achieve the portfolio’s objective by investing, under normal circumstances, at least 80% of its netassets (plus the amount of borrowings, if any, for investment purposes) in equity securities of large- andmedium-capitalization U.S. companies. The portfolio may invest in foreign companies. The sub-adviser will normallykeep the portfolio as fully invested in equity securities as practicable. Industry by industry, the portfolio’s weightings aregenerally similar to those of the S&P 500®. The sub-adviser normally does not look to overweight or underweightindustries. Holdings by industry sector will normally approximate those of the S&P 500®.

Industry by industry, the portfolio’s weightings are generally similar to those of the S&P 500®. The portfolio normallydoes not look to overweight or underweight industries. Holdings by industry sector will normally approximate those of theS&P 500®. Within each industry, the portfolio’s sub-adviser modestly may overweight stocks that it views as undervaluedor fairly valued while modestly underweighting or not holding stocks that it views as overvalued. The portfolio normallyinvests primarily in common stocks.

The portfolio may invest up to 20% of its assets in short-term, fixed-income instruments, including U.S. governmentsecurities and repurchase agreements. The portfolio may use index futures to equitize cash.






• Derivatives – Using derivatives exposes the portfolio to additional risks and can increase portfolio losses and reduceopportunities for gains when market prices, interest rates or the derivatives themselves behave in a way not anticipatedby the portfolio. Using derivatives also can have a leveraging effect and increase portfolio volatility. The portfolio mayalso have to sell assets at inopportune times to satisfy its obligations. Derivatives may be difficult to sell, unwind orvalue, and the counterparty may default on its obligations to the portfolio. The portfolio’s investments in derivativeinstruments may involve a small investment relative to the amount of investment exposure assumed and may result inlosses exceeding the amounts invested in those instruments. Certain derivatives have the potential for unlimited loss,regardless of the size of the initial investment. The U.S. government is in the process of adopting and implementing

2

TJPEI-2

regulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reportingrequirements. The ultimate impact of the regulations remains unclear. Additional regulation of derivatives may makethem more costly, may limit their availability, may disrupt markets or may otherwise adversely affect their value orperformance.







• Market – The market prices of the portfolio’s securities may go up or down, sometimes rapidly or unpredictably, dueto general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes ininterest rates or currency rates, lack of liquidity in the markets or adverse investor sentiment. Adverse marketconditions may be prolonged and may not have the same impact on all types of securities. Market prices of securitiesalso may go down due to events or conditions that affect particular sectors, industries or issuers. When market pricesfall, the value of your investment will go down. The portfolio may experience a substantial or complete loss on anyindividual security. The global financial crisis that began in 2008 has caused a significant decline in the value andliquidity of many securities and unprecedented volatility in the markets. Governmental and non-governmental issuers(notably in Europe) have defaulted on, or been forced to restructure their debts; and many other issuers have faceddifficulties obtaining credit or refinancing existing obligations. These market conditions may continue, worsen orspread, including in the United States, Europe and elsewhere. Further defaults or restructurings by governments andothers of their debt could have additional adverse effects on economies, financial markets and asset valuations aroundthe world. In response to the crisis, the U.S. government and the Federal Reserve, as well as certain foreigngovernments and their central banks have taken steps to support financial markets, including by keeping interest rateslow. More recently, the Federal Reserve has reduced its market support activities. Further reduction or withdrawal ofthis support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeedingcould negatively affect financial markets generally and increase market volatility as well as reduce the value andliquidity of certain securities. This environment could make identifying investment risks and opportunities especially

3

TJPEI-3

difficult for the sub-adviser. Whether or not the portfolio invests in securities of issuers located in or with significantexposure to countries experiencing economic and financial difficulties, the value and liquidity of the portfolio’sinvestments may be negatively affected. In addition, policy and legislative changes in the United States and in othercountries are affecting many aspects of financial regulation. The impact of these changes on the markets, and thepractical implications for market participants, may not be fully known for some time.

• Medium Capitalization Companies – The portfolio will be exposed to additional risks as a result of itsinvestments in the securities of medium capitalization companies. Investing in medium capitalization companiesinvolves greater risk than is customarily associated with more established companies. The prices of securities ofmedium capitalization companies generally are more volatile and are more likely to be adversely affected by changesin earnings results and investor expectations or poor economic or market conditions. Securities of mediumcapitalization companies may underperform larger capitalization companies, may be harder to sell at times and atprices the portfolio managers believe appropriate and may offer greater potential for losses.


• Repurchase Agreements – If the other party to a repurchase agreement defaults on its obligation, the portfoliomay suffer delays and incur costs or lose money in exercising its rights under the agreement. If the seller fails torepurchase the security and the market value declines, the portfolio could lose money. If the seller becomes insolventand subject to liquidation or reorganization under applicable bankruptcy or other laws, the portfolio’s ability todispose of the underlying securities may be restricted.

• Rule 144A and Privately Placed Securities – Rule 144A permits certain qualified institutional buyers, such asthe portfolio, to trade in privately placed securities that have not been registered for sale to the public. Rule 144A andother privately placed securities may be deemed illiquid, and the portfolio might be unable to dispose of suchsecurities promptly or at reasonable prices.





4

TJPEI-4


2013201220112010200920082007200620052004

16.35%

32.52%

11.02%3.46%

15.31%4.54%

-37.35%

15.18%

29.59%

0.74%




Initial Class 32.52% 18.31% 7.24% 05/02/1997Service Class 32.13% 18.01% 6.96% 05/01/2003S&P 500® (reflects no deduction for fees, expensesor taxes) 32.39% 17.94% 7.41%

Management:


Transamerica Asset Management, Inc. J.P. Morgan Investment Management Inc.

Portfolio Managers:

Aryeh Glatter, Portfolio Manager since 2014

Terance Chen, CFA, Portfolio Manager since 1997

Tim Snyder, CFA, Portfolio Manager since 2013

Raffaele Zingone, CFA, Portfolio Manager since 1997

Steven G. Lee, Portfolio Manager since 2014





5

TJPEI-5


6SPST0514JPEI

TJPEI-6

TRANSAMERICA JPMORGAN MID CAP VALUE VPSummary Prospectus



Investment Objective: Seeks growth from capital appreciation.










1

TJPMCV-1


Principal Investment Strategies: The portfolio’s sub-adviser, J.P. Morgan Investment Management Inc. (the“sub-adviser”), seeks to achieve the portfolio’s objective by investing, under normal circumstances, at least 80% of theportfolio’s net assets (plus the amount of borrowings, if any, for investment purposes) in common stocks of companieswith market capitalizations of $1 billion to $20 billion at the time of purchase that the sub-adviser believes to beundervalued. The portfolio will normally only purchase securities that are traded on registered exchanges or theover-the-counter market in the United States. The portfolio may invest in other equity securities, which include preferredstocks, convertible securities and foreign securities, which may take the form of depositary receipts. The portfolio mayalso invest up to 15% of its net assets in real estate investment trusts (“REITs”). Maximum weightings in any sector aredouble that of the benchmark or 25%, whichever is greater.

The sub-adviser may use derivatives, including futures contracts, covered call options, options on futures contracts andstock index futures and options, for the purpose of remaining fully invested, equitizing cash, reducing transaction costs ormanaging interest rate risk.




• Convertible Securities – Convertible securities share investment characteristics of both fixed income and equitysecurities. However, the value of these securities tends to vary more with fluctuations in the value of the underlyingcommon stock than with fluctuations in interest rates. The value of convertible securities also tends to exhibit lowervolatility than the underlying common stock. Convertible securities generally offer lower interest or dividend yieldsthan non-convertible securities of similar quality. The portfolio could lose money if the issuer of a convertible securityis unable to meet its financial obligations or goes bankrupt.



• Derivatives – Using derivatives exposes the portfolio to additional risks and can increase portfolio losses and reduceopportunities for gains when market prices, interest rates or the derivatives themselves behave in a way not anticipatedby the portfolio. Using derivatives also can have a leveraging effect and increase portfolio volatility. The portfolio mayalso have to sell assets at inopportune times to satisfy its obligations. Derivatives may be difficult to sell, unwind orvalue, and the counterparty may default on its obligations to the portfolio. The portfolio’s investments in derivative

2

TJPMCV-2

instruments may involve a small investment relative to the amount of investment exposure assumed and may result inlosses exceeding the amounts invested in those instruments. Certain derivatives have the potential for unlimited loss,regardless of the size of the initial investment. The U.S. government is in the process of adopting and implementingregulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reportingrequirements. The ultimate impact of the regulations remains unclear. Additional regulation of derivatives may makethem more costly, may limit their availability, may disrupt markets or may otherwise adversely affect their value orperformance.






• Market – The market prices of the portfolio’s securities may go up or down, sometimes rapidly or unpredictably, dueto general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes ininterest rates or currency rates, lack of liquidity in the markets or adverse investor sentiment. Adverse marketconditions may be prolonged and may not have the same impact on all types of securities. Market prices of securitiesalso may go down due to events or conditions that affect particular sectors, industries or issuers. When market pricesfall, the value of your investment will go down. The portfolio may experience a substantial or complete loss on anyindividual security. The global financial crisis that began in 2008 has caused a significant decline in the value andliquidity of many securities and unprecedented volatility in the markets. Governmental and non-governmental issuers(notably in Europe) have defaulted on, or been forced to restructure their debts; and many other issuers have faceddifficulties obtaining credit or refinancing existing obligations. These market conditions may continue, worsen orspread, including in the United States, Europe and elsewhere. Further defaults or restructurings by governments andothers of their debt could have additional adverse effects on economies, financial markets and asset valuations aroundthe world. In response to the crisis, the U.S. government and the Federal Reserve, as well as certain foreigngovernments and their central banks have taken steps to support financial markets, including by keeping interest rateslow. More recently, the Federal Reserve has reduced its market support activities. Further reduction or withdrawal ofthis support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeedingcould negatively affect financial markets generally and increase market volatility as well as reduce the value andliquidity of certain securities. This environment could make identifying investment risks and opportunities especiallydifficult for the sub-adviser. Whether or not the portfolio invests in securities of issuers located in or with significantexposure to countries experiencing economic and financial difficulties, the value and liquidity of the portfolio’s

3

TJPMCV-3

investments may be negatively affected. In addition, policy and legislative changes in the United States and in othercountries are affecting many aspects of financial regulation. The impact of these changes on the markets, and thepractical implications for market participants, may not be fully known for some time.



• Preferred Stock – Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of acompany’s debt securities. The value of preferred stock may be subject to factors that affect fixed income and equitysecurities, including changes in interest rates and in a company’s creditworthiness. The value of preferred stock tendsto vary more with fluctuations in the underlying common stock and less with fluctuations in interest rates and tends toexhibit greater volatility. Shareholders of preferred stock may suffer a loss of value if dividends are not paid and havelimited voting rights.

• REITs – Investing in real estate investment trusts (“REITs”) involves unique risks. When the portfolio invests inREITs, it is subject to risks generally associated with investing in real estate. A REIT’s performance depends on thetypes and locations of the properties it owns, how well it manages those properties and cash flow. REITs may havelower trading volumes and may be subject to more abrupt or erratic price movements than the overall securitiesmarkets. In addition to its own expenses, the portfolio will indirectly bear its proportionate share of any managementand other expenses paid by REITs in which it invests. REITs are subject to a number of highly technical tax-relatedrules and requirements; and the failure to qualify as a REIT could result in corporate-level taxation, significantlyreducing the return on an investment to the portfolio.




Prior to May 1, 2004, the portfolio was named Transamerica Dreyfus Mid Cap, had a different sub-adviser, a differentinvestment objective and used different investment strategies. The performance set forth prior to that date is attributable toa previous sub-adviser.

4

TJPMCV-4


2013201220112010200920082007200620052004

2.01%

20.53%31.81%

14.58%9.15%

17.25%

2.83%

-32.88%

22.99%26.41%




Initial Class 31.81% 20.30% 9.81% 05/03/1999Service Class 31.47% 20.02% 9.54% 05/01/2003Russell Midcap® Value Index (reflects no deductionfor fees, expenses or taxes) 33.46% 21.16% 10.25%


Management:


Transamerica Asset Management, Inc. J.P. Morgan Investment Management Inc.

Portfolio Managers:

Gloria Fu, CFA, Portfolio Manager since 2006

Lawrence Playford, CFA, Portfolio Manager since 2004

Jonathan K. L. Simon, Portfolio Manager since 2004





Payments to Broker-Dealers and Other Financial Intermediaries: If you purchase the portfolio through abroker-dealer or other financial intermediary (such as a bank or insurance company), the portfolio and/or its affiliates may

5

TJPMCV-5

pay the intermediary for the sale of portfolio shares and related services. These payments may create a conflict of interestby influencing the broker-dealer or other intermediary and your salesperson to recommend the portfolio over anotherinvestment. Ask your salesperson or visit your financial intermediary’s website for more information.

6SPST0514JPMCV

TJPMCV-6

TRANSAMERICA JENNISON GROWTH VPSummary Prospectus



Investment Objective: Seeks long-term growth of capital.










1

TJG-1


Principal Investment Strategies: The portfolio’s sub-adviser, Jennison Associates LLC (the “sub-adviser”), invests,under normal circumstances, at least 65% of the portfolio’s total assets in equity and equity-related securities, principallycommon stocks, preferred stocks, warrants, rights and depositary receipts of U.S. companies with market capitalizationsof at least $1 billion that the sub-adviser considers to have above average prospects for growth. These companies aregenerally medium- to large-capitalization companies.

The sub-adviser uses a “bottom-up” approach, researching and evaluating individual company fundamentals rather thanmacro-economic factors, in seeking to identify individual companies with earnings growth potential that may not berecognized by the market at large. A “bottom-up” approach is looking at individual companies against the context ofbroader market factors.

The portfolio may invest up to 20% of its assets in the securities of foreign issuers.









2

TJG-2







• Preferred Stock – Preferred stock’s right to dividends and liquidation proceeds is junior to the rights of acompany’s debt securities. The value of preferred stock may be subject to factors that affect fixed income and equitysecurities, including changes in interest rates and in a company’s creditworthiness. The value of preferred stock tends

3

TJG-3

to vary more with fluctuations in the underlying common stock and less with fluctuations in interest rates and tends toexhibit greater volatility. Shareholders of preferred stock may suffer a loss of value if dividends are not paid and havelimited voting rights.

• Warrants and Rights – Warrants and rights may be considered more speculative than certain other types ofinvestments because they do not entitle a holder to the dividends or voting rights for the securities that may bepurchased. They do not represent any rights in the assets of the issuing company, and cease to have value if notexercised prior to the expiration date.




2013201220112010200920082007200620052004

-0.63%

15.77%

37.70%

9.13% 13.79% 11.51%

-37.01%

12.26%

41.00%

1.96%




Initial Class 37.70% 20.18% 8.35% 11/18/1996Service Class 37.30% 19.89% 8.09% 05/01/2003Russell 1000® Growth Index (reflects no deductionfor fees, expenses or taxes) 33.48% 20.39% 7.83%


Management:


Transamerica Asset Management, Inc. Jennison Associates LLC

Portfolio Managers:

Michael A. Del Balso, Portfolio Manager since 2000

Kathleen A. McCarragher, Portfolio Manager since 2000

Spiros “Sig” Segalas, Portfolio Manager since 2004

4

TJG-4






5SPST0514JG

TJG-5

TRANSAMERICA MFS INTERNATIONAL EQUITY VPSummary Prospectus



Investment Objective: Seeks capital growth.








Share Class 1 year 3 years 5 years 10 yearsInitial $105 $360 $635 $1,418Service $130 $406 $702 $1,545



1

TMFSIE-1

Principal Investment Strategies: The portfolio’s sub-adviser, MFS® Investment Management (the “sub-adviser”),invests, under normal circumstances, at least 80% of the portfolio’s net assets (plus the amount of borrowings, if any, forinvestment purposes) in common stocks and related equity securities—such as preferred stock, convertible securities anddepositary receipts—of issuers economically tied to a number of countries throughout the world, including emergingmarket countries. The portfolio normally invests primarily in equity securities of foreign companies, including emergingmarket equity securities. The sub-adviser may invest a large percentage of the portfolio’s assets in issuers in a singlecountry, a small number of countries, or a particular geographic region. In selecting investments for the portfolio, thesub-adviser is not constrained to any particular investment style. The sub-adviser may invest the portfolio’s assets in thestocks of companies it believes to have above average earnings growth potential compared to other companies (growthcompanies), in the stocks of companies it believes are undervalued compared to their perceived worth (value companies),or in a combination of growth and value companies. The sub-adviser may invest the portfolio’s assets in companies of anysize.

The sub-adviser uses a “bottom-up” investment approach to buying and selling investments for the portfolio. A“bottom-up” approach is looking at individual companies against the context of broader market factors. Investments areselected primarily based on fundamental analysis of individual issuers and their potential in light of their financialcondition, and market, economic, political, and regulatory conditions. Factors considered may include analysis of anissuer’s earnings, cash flows, competitive position, and management ability. Quantitative models that systematicallyevaluate an issuer’s valuation, price, and earnings momentum, earnings quality, and other factors may also be considered.The sub-adviser may engage in active and frequent trading in pursuing the portfolio’s principal investment strategies.







• Depositary Receipts – Depositary receipts may be less liquid than the underlying shares in their primary tradingmarket. Any distributions paid to the holders of depositary receipts are usually subject to a fee charged by thedepositary. Holders of depositary receipts may have limited voting rights, and investment restrictions in certain

2

TMFSIE-2

countries may adversely impact the value of depositary receipts because such restrictions may limit the ability toconvert equity shares into depositary receipts and vice versa. Such restrictions may cause equity shares of theunderlying issuer to trade at a discount or premium to the market price of the depositary receipts.









• Market – The market prices of the portfolio’s securities may go up or down, sometimes rapidly or unpredictably, dueto general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes ininterest rates or currency rates, lack of liquidity in the markets or adverse investor sentiment. Adverse marketconditions may be prolonged and may not have the same impact on all types of securities. Market prices of securitiesalso may go down due to events or conditions that affect particular sectors, industries or issuers. When market pricesfall, the value of your investment will go down. The portfolio may experience a substantial or complete loss on anyindividual security. The global financial crisis that began in 2008 has caused a significant decline in the value andliquidity of many securities and unprecedented volatility in the markets. Governmental and non-governmental issuers(notably in Europe) have defaulted on, or been forced to restructure their debts; and many other issuers have faceddifficulties obtaining credit or refinancing existing obligations. These market conditions may continue, worsen orspread, including in the United States, Europe and elsewhere. Further defaults or restructurings by governments andothers of their debt could have additional adverse effects on economies, financial markets and asset valuations aroundthe world. In response to the crisis, the U.S. government and the Federal Reserve, as well as certain foreigngovernments and their central banks have taken steps to support financial markets, including by keeping interest rates

3

TMFSIE-3

low. More recently, the Federal Reserve has reduced its market support activities. Further reduction or withdrawal ofthis support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeedingcould negatively affect financial markets generally and increase market volatility as well as reduce the value andliquidity of certain securities. This environment could make identifying investment risks and opportunities especiallydifficult for the sub-adviser. Whether or not the portfolio invests in securities of issuers located in or with significantexposure to countries experiencing economic and financial difficulties, the value and liquidity of the portfolio’sinvestments may be negatively affected. In addition, policy and legislative changes in the United States and in othercountries are affecting many aspects of financial regulation. The impact of these changes on the markets, and thepractical implications for market participants, may not be fully known for some time.








2013201220112010200920082007200620052004

-10.06%

22.16% 18.09%14.34% 12.86%23.07%

9.15%

-35.29%

10.50%

32.68%

4

TMFSIE-4




Initial Class 18.09% 13.72% 7.87% 01/02/1997Service Class 17.77% 13.45% 7.61% 05/01/2003MSCI Europe, Australasia, Far East Index (reflectsno deduction for fees, expenses or taxes) 23.29% 12.96% 7.39%

Management:


Transamerica Asset Management, Inc. MFS® Investment Management

Portfolio Managers:

Daniel Ling, Portfolio Manager since 2009

Marcus L. Smith, Portfolio Manager since 2006






5SPST0514MIE

TMFSIE-5

TRANSAMERICA MORGAN STANLEY MID-CAP GROWTH VPSummary Prospectus



Investment Objective: Seeks capital appreciation.










1

TMSMCG-1


Principal Investment Strategies: The portfolio’s sub-adviser, Morgan Stanley Investment Management Inc. (the“sub-adviser”), under normal circumstances, invests at least 80% of the portfolio’s net assets (plus the amount ofborrowings, if any, for investment purposes) in common stocks of mid cap companies. The sub-adviser seeks long-termcapital growth by investing primarily in established and emerging mid cap companies with capitalizations within the rangeof companies included in the Russell Midcap® Growth Index1, which as of December 31, 2013, was between $737.6million and $31.9 billion.

The sub-adviser emphasizes a bottom-up stock selection process, seeking attractive investments on an individual companybasis. The sub-adviser seeks to invest in high quality companies it believes have sustainable competitive advantages andthe ability to redeploy capital at high rates of return. The sub-adviser typically favors companies with rising returns oninvested capital, above average business visibility, strong free cash flow generation and an attractive risk/reward. Thesub-adviser generally considers selling an investment when it determines the investment no longer satisfies its investmentcriteria.

The sub-adviser may invest up to 25% of the portfolio’s assets in securities of foreign companies, including emergingmarket securities. The sub-adviser considers an issuer to be from a particular country if (i) its principal securities tradingmarket is in that country; (ii) alone or on a consolidated basis it derives 50% or more of its annual revenue from goodsproduced, sales made or services performed in that country; or (iii) it is organized under the laws of, or has a principaloffice in, that country. By applying these tests, it is possible that a particular company could be deemed to be from morethan one country. The securities in which the portfolio may invest may be denominated in U.S. dollars or in currenciesother than U.S. dollars.

The portfolio may utilize foreign currency forward exchange contracts, which are derivatives, in connection with itsinvestment in foreign securities. The portfolio may invest in convertible securities. The portfolio may also invest inprivately placed and restricted securities.

Under adverse or unstable market, economic or political conditions, the portfolio may take temporary defensive positionsin cash and short-term debt securities without limit. During periods of defensive investing, it will be more difficult for theportfolio to achieve its objective.1 Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell indexes. Russell® is a trademark of RussellInvestment Group.




• Currency – The value of the portfolio’s securities denominated in foreign currencies fluctuates as the rates ofexchange between those currencies and the U.S. dollar change. Currency conversion costs and currency fluctuations

2

TMSMCG-2

could reduce or eliminate investment gains or add to investment losses. Currency exchange rates can be volatile andare affected by, among other factors, the general economics of a country, the actions of the U.S. and foreigngovernments or central banks, the imposition of currency controls, and speculation.









• Market – The market prices of the portfolio’s securities may go up or down, sometimes rapidly or unpredictably, dueto general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes ininterest rates or currency rates, lack of liquidity in the markets or adverse investor sentiment. Adverse marketconditions may be prolonged and may not have the same impact on all types of securities. Market prices of securitiesalso may go down due to events or conditions that affect particular sectors, industries or issuers. When market prices

3

TMSMCG-3

fall, the value of your investment will go down. The portfolio may experience a substantial or complete loss on anyindividual security. The global financial crisis that began in 2008 has caused a significant decline in the value andliquidity of many securities and unprecedented volatility in the markets. Governmental and non-governmental issuers(notably in Europe) have defaulted on, or been forced to restructure their debts; and many other issuers have faceddifficulties obtaining credit or refinancing existing obligations. These market conditions may continue, worsen orspread, including in the United States, Europe and elsewhere. Further defaults or restructurings by governments andothers of their debt could have additional adverse effects on economies, financial markets and asset valuations aroundthe world. In response to the crisis, the U.S. government and the Federal Reserve, as well as certain foreigngovernments and their central banks have taken steps to support financial markets, including by keeping interest rateslow. More recently, the Federal Reserve has reduced its market support activities. Further reduction or withdrawal ofthis support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeedingcould negatively affect financial markets generally and increase market volatility as well as reduce the value andliquidity of certain securities. This environment could make identifying investment risks and opportunities especiallydifficult for the sub-adviser. Whether or not the portfolio invests in securities of issuers located in or with significantexposure to countries experiencing economic and financial difficulties, the value and liquidity of the portfolio’sinvestments may be negatively affected. In addition, policy and legislative changes in the United States and in othercountries are affecting many aspects of financial regulation. The impact of these changes on the markets, and thepractical implications for market participants, may not be fully known for some time.






Prior to November 1, 2005, the portfolio was named Van Kampen Emerging Growth and used different investmentstrategies. The performance set forth prior to that date is attributable to the prior strategies.

4

TMSMCG-4


2013201220112010200920082007200620052004

-6.77%

9.08%

39.14%

7.14% 7.55% 9.91%22.53%

-46.29%

33.90%

60.56%




Initial Class 39.14% 24.94% 9.76% 03/01/1993Service Class 38.83% 24.63% 9.49% 05/01/2003Russell Midcap® Growth Index (reflects nodeduction for fees, expenses or taxes) 35.74% 23.37% 9.77%

Management:


Transamerica Asset Management, Inc. Morgan Stanley Investment Management Inc.

Portfolio Managers:

Dennis P. Lynch, Lead Portfolio Manager since 2002

David S. Cohen, Portfolio Manager since 2002

Sam G. Chainani, CFA, Portfolio Manager since 2004

Alexander T. Norton, Portfolio Manager since 2005

Jason C. Yeung, CFA, Portfolio Manager since 2007

Armistead B. Nash, Portfolio Manager since 2008





5

TMSMCG-5


6SPST0514MSMCG

TMSMCG-6

TRANSAMERICA PIMCO TOTAL RETURN VPSummary Prospectus



Investment Objective: Seeks maximum total return consistent with preservation of capital and prudent investmentmanagement.








Share Class 1 year 3 years 5 years 10 yearsInitial $72 $256 $457 $1,035Service $97 $303 $525 $1,166


1

TPTR-1


Principal Investment Strategies: The portfolio’s sub-adviser, Pacific Investment Management Company LLC (the“sub-adviser”), invests, under normal circumstances, at least 65% of the portfolio’s total assets in fixed-incomeinstruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts,or swap agreements. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued byvarious U.S. and non-U.S. public- or private-sector entities. The average duration of this portfolio normally varies withintwo years (plus or minus) of the duration of the Barclays U.S. Aggregate Bond Index, as calculated by the sub-adviser,which as of December 31, 2013, was 5.6 years. Duration is a measure of the expected life of a fixed-income security thatis used to determine the sensitivity of a security’s price to changes in interest rates.

The sub-adviser invests the portfolio’s assets primarily in investment grade debt securities, but may invest up to 10% of theportfolio’s total assets in high yield securities (“junk bonds”) rated B or higher by Moody’s, Fitch, or S&P or, if unrated,determined by the sub-adviser to be of comparable quality (except that within such limitation, the portfolio may invest inmortgage-related securities rated below B). The sub-adviser may invest up to 30% of the portfolio’s total assets insecurities denominated in foreign currencies, and may invest beyond this limit in U.S. dollar-denominated securities offoreign issuers. The portfolio may invest up to 15% of its total assets in securities and instruments that are economicallytied to emerging market countries. Foreign currency exposure (from non-U.S. dollar-denominated securities or currencies)normally will be limited to 20% of the portfolio’s total assets. The portfolio may invest in to-be-announced pass-throughmortgage securities, which settle on a delayed delivery basis.

The portfolio may invest all of its assets in derivative instruments, such as options, futures contracts or swap agreements,or in mortgage- or asset-backed securities. The portfolio may engage in short sales. The portfolio may, without limitation,seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and salecontracts or by using other investment techniques (such as buy backs or dollar rolls). The “total return” sought by theportfolio consists of income earned on the portfolio’s investments, plus capital appreciation, if any, which generally arisesfrom decreases in interest rates or improving credit fundamentals for a particular sector or security. The portfolio mayinvest up to 10% of its total assets in preferred stock, convertible securities and other equity related securities.






2

TPTR-2





• Dollar Rolls – Fixed income securities with buy-back features enable the portfolio to recover principal upontendering the securities to the issuer or a third party. A dollar roll transaction involves a sale by the portfolio of amortgage-backed or other security concurrently with an agreement by the portfolio to repurchase a similar security ata later date at an agreed-upon price. The securities that are repurchased will bear the same interest rate and statedmaturity as those sold, but pools of mortgages collateralizing those securities may have different prepayment historiesthan those sold.





3

TPTR-3





• Leveraging – The value of your investment may be more volatile to the extent that the portfolio borrows or usesderivatives or other investments that have a leveraging effect on the portfolio. Other risks also will be compounded.This is because leverage generally magnifies the effect of a change in the value of an asset and creates a risk of loss ofvalue on a larger pool of assets than the portfolio would otherwise have had. The use of leverage is considered to be aspeculative investment practice and may result in the loss of a substantial amount, and possibly all, of the portfolio’sassets. The portfolio also may have to sell assets at inopportune times to satisfy its obligations.



• Market – The market prices of the portfolio’s securities may go up or down, sometimes rapidly or unpredictably, dueto general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes ininterest rates or currency rates, lack of liquidity in the markets or adverse investor sentiment. Adverse marketconditions may be prolonged and may not have the same impact on all types of securities. Market prices of securitiesalso may go down due to events or conditions that affect particular sectors, industries or issuers. When market pricesfall, the value of your investment will go down. The portfolio may experience a substantial or complete loss on anyindividual security. The global financial crisis that began in 2008 has caused a significant decline in the value andliquidity of many securities and unprecedented volatility in the markets. Governmental and non-governmental issuers(notably in Europe) have defaulted on, or been forced to restructure their debts; and many other issuers have faceddifficulties obtaining credit or refinancing existing obligations. These market conditions may continue, worsen orspread, including in the United States, Europe and elsewhere. Further defaults or restructurings by governments andothers of their debt could have additional adverse effects on economies, financial markets and asset valuations aroundthe world. In response to the crisis, the U.S. government and the Federal Reserve, as well as certain foreigngovernments and their central banks have taken steps to support financial markets, including by keeping interest rateslow. More recently, the Federal Reserve has reduced its market support activities. Further reduction or withdrawal of

4

TPTR-4

this support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeedingcould negatively affect financial markets generally and increase market volatility as well as reduce the value andliquidity of certain securities. This environment could make identifying investment risks and opportunities especiallydifficult for the sub-adviser. Whether or not the portfolio invests in securities of issuers located in or with significantexposure to countries experiencing economic and financial difficulties, the value and liquidity of the portfolio’sinvestments may be negatively affected. In addition, policy and legislative changes in the United States and in othercountries are affecting many aspects of financial regulation. The impact of these changes on the markets, and thepractical implications for market participants, may not be fully known for some time.

• Mortgage-Related and Asset-Backed Securities – The value of mortgage-related and asset-backed securitieswill be influenced by factors affecting the housing market and the assets underlying such securities. As a result, duringperiods of declining asset values, difficult or frozen credit markets, swings in interest rates, or deteriorating economicconditions, mortgage-related and asset-backed securities may decline in value, face valuation difficulties, becomemore volatile and/or become illiquid. Mortgage-backed securities may be issued by private issuers, bygovernment-sponsored entities such as Fannie Mae or Freddie Mac or by agencies of the U.S. government, such asGinnie Mae. Mortgage-backed securities represent direct or indirect participations in, or are collateralized by andpayable from, mortgage loans secured by real property. Unlike mortgage-related securities issued or guaranteed byagencies of the U.S. government or government-sponsored entities, mortgage-related securities issued by privateissuers do not have a government or government-sponsored entity guarantee (but may have other credit enhancement),and may, and frequently do, have less favorable collateral, credit risk or other underwriting characteristics.Asset-backed securities represent participations in, or are secured by and payable from, assets such as installmentsales or loan contracts, leases, credit card receivables and other categories of receivables. The value ofmortgage-backed and asset-backed securities may be affected by changes in credit quality or value of the mortgageloans or other assets that support the securities. Mortgage-backed and asset-backed securities are subject toprepayment or call and extension risks. Some of these securities may receive little or no collateral protection from theunderlying assets. The risk of default is generally higher in the case of mortgage-backed investments that includeso-called “sub-prime” mortgages. The structure of some of these securities may be complex and there may be lessinformation available than for other types of debt securities. Upon the occurrence of certain triggering events ordefaults, the portfolio may become the holder of underlying assets at a time when those assets may be difficult to sellor may be sold only at a loss.




• Repurchase Agreements – If the other party to a repurchase agreement defaults on its obligation, the portfoliomay suffer delays and incur costs or lose money in exercising its rights under the agreement. If the seller fails torepurchase the security and the market value declines, the portfolio could lose money. If the seller becomes insolventand subject to liquidation or reorganization under applicable bankruptcy or other laws, the portfolio’s ability todispose of the underlying securities may be restricted.

5

TPTR-5


• Short Sales – A short sale may be effected by selling a security that the portfolio does not own. If the price of thesecurity sold short increases, the portfolio would incur a loss; conversely, if the price declines, the portfolio willrealize a gain. Although the gain is limited by the price at which the security was sold short, the loss is potentiallyunlimited. The portfolio may also pay transaction costs and borrowing fees in connection with short sales.

• Sovereign Debt – Sovereign debt instruments are subject to the risk that the governmental entity may delay or failto pay interest or repay principal on its sovereign debt. If a governmental entity defaults, it may ask for more time inwhich to pay or for further loans. There may be no established legal process for collecting sovereign debt that agovernment does not pay, nor are there bankruptcy proceedings through which all or part of the sovereign debt that agovernmental entity has not repaid may be collected.


• Valuation – The sales price the portfolio could receive for any particular portfolio investment may differ from theportfolio’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that arevalued using a fair value methodology.




2013201220112010200920082007200620052004

-2.46%

4.50%2.33%

4.21%

8.95%

-2.79%

7.19%

16.03%

6.27% 7.55%


6

TPTR-6



Initial Class -2.46% 6.76% 5.05% 05/01/2002Service Class -2.68% 6.49% 4.79% 05/01/2003Barclays U.S. Aggregate Bond Index (reflects nodeduction for fees, expenses or taxes) -2.02% 4.44% 4.55%

Management:


Transamerica Asset Management, Inc. Pacific Investment Management Company LLC

Portfolio Manager:

William H. Gross, CFA, Portfolio Manager since 2014






7SPST0514PTR

TPTR-7

TRANSAMERICA SYSTEMATIC SMALL/MID CAP VALUE VPSummary Prospectus



Investment Objective: Seeks to maximize total return.










1

TSSMCV-1


Principal Investment Strategies: The portfolio’s sub-adviser, Systematic Financial Management, L.P. (the“sub-adviser”), seeks to achieve the portfolio’s objective by investing, under normal circumstances, at least 80% of theportfolio’s net assets (plus the amount of borrowings, if any, for investment purposes) in small- and mid-cap equitysecurities (U.S. equity securities, American Depositary Receipts (“ADRs”) and foreign securities trading on U.S. markets).The portfolio defines small- and mid-cap equities as companies whose market capitalization falls within the range of $100million to $20 billion or within the range of the Russell 2500® Index1, which as of December 31, 2013, was between $30million and $10.8 billion, whichever is broader at the time of purchase.

The portfolio generally will invest in small- and mid-cap equities with valuation characteristics including lowprice/earnings and price/cash flow ratios. The sub-adviser’s security selection process generally favors companies withpositive earnings dynamics, manageable debt levels and good cash flows. Trends in balance sheet items includinginventories, accounts receivable, and payables are scrutinized as well. The sub-adviser also reviews the company’sproducts/services, market position, industry condition, financial and accounting policies and quality of management.Securities of issuers that possess the greatest combination of the aforementioned attributes are then prioritized ascandidates for purchase.

The portfolio may invest up to 10% of its total assets in the securities of foreign issuers, including ADRs and foreignsecurities trading on U.S. markets. The portfolio may also invest in real estate investment trusts (“REITs”).

The sub-adviser employs a fully invested strategy. Therefore, under normal market conditions, cash and cash equivalentsare generally less than 5% of the portfolio value.

Under adverse or unstable market, economic or political conditions, the portfolio may take temporary defensive positionsin cash and short-term debt securities without limit. During periods of defensive investing, it will be more difficult for theportfolio to achieve its objective.1 Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell indexes. Russell® is a trademark of RussellInvestment Group.





• Equity Securities – Equity securities represent an ownership interest in an issuer, rank junior in a company’scapital structure and consequently may entail greater risk of loss than debt securities. Equity securities include

2

TSSMCV-2

common and preferred stocks. Stock markets are volatile. The price of equity securities fluctuates based on changes ina company’s financial condition and overall market and economic conditions. If the market prices of the equitysecurities owned by the portfolio fall, the value of your investment in the portfolio will decline.






• REITs – Investing in real estate investment trusts (“REITs”) involves unique risks. When the portfolio invests inREITs, it is subject to risks generally associated with investing in real estate. A REIT’s performance depends on thetypes and locations of the properties it owns, how well it manages those properties and cash flow. REITs may havelower trading volumes and may be subject to more abrupt or erratic price movements than the overall securitiesmarkets. In addition to its own expenses, the portfolio will indirectly bear its proportionate share of any managementand other expenses paid by REITs in which it invests. REITs are subject to a number of highly technical tax-relatedrules and requirements; and the failure to qualify as a REIT could result in corporate-level taxation, significantlyreducing the return on an investment to the portfolio.

3

TSSMCV-3





Prior to March 22, 2011, the portfolio was named Transamerica Small/Mid Cap Value VP, had a different sub-adviser andused different investment strategies. The performance set forth prior to March 22, 2011 is attributable to a previoussub-adviser.


2013201220112010200920082007200620052004

-2.66%

16.39%

36.32%

16.35% 13.56% 18.05%24.74%

-40.86%

30.41%43.21%




Initial Class 36.32% 23.60% 12.74% 05/04/1993Service Class 36.04% 23.30% 12.82% 05/03/2004Russell 2500™ Value Index (reflects no deductionfor fees, expenses or taxes) 33.32% 19.61% 9.29%

4

TSSMCV-4

Management:


Transamerica Asset Management, Inc. Systematic Financial Management, L.P.

Portfolio Managers:

Kenneth Burgess, CFA, Portfolio Manager since 2011

Ron Mushock, CFA, Portfolio Manager since 2011






5SPST0514SSMVC

TSSMCV-5

TRANSAMERICA T. ROWE PRICE SMALL CAP VPSummary Prospectus



Investment Objective: Seeks long-term growth of capital by investing primarily in common stocks of small growthcompanies.










1

TTRPSC-1


Principal Investment Strategies: The portfolio’s sub-adviser, T. Rowe Price Associates, Inc. (the “sub-adviser”),seeks to achieve the portfolio’s objective by investing, under normal circumstances, at least 80% of its net assets (plus theamount of borrowings, if any, for investment purposes) in small-cap growth companies. These are currently defined by thesub-adviser as companies whose market capitalization falls within the range of companies in the Morgan Stanley CapitalInternational U.S. Small Cap Growth Index (“MSCI U.S. Small Cap Growth Index”), which was approximately $99.23million to $19.09 billion as of December 31, 2013, but the range will vary with market fluctuations. Companies whosecapitalization increases above this range after the portfolio’s initial purchase continue to be considered small companiesfor purposes of this policy. The portfolio intends to be invested in a large number of holdings and the top 25 holdings willnot, under normal circumstances, constitute more than 50% of total assets. Based on quantitative models and fundamentalcompany research, stocks are selected in a “bottom-up” manner so that the portfolio as a whole reflects characteristics thesub-adviser considers important, such as valuations and projected earnings and sales growth, capital usage, and earningsquality. A “bottom-up” approach is looking at individual companies against the context of broader market factors.

While the portfolio normally invests principally in small-cap U.S. common stocks, the sub-adviser may, to a lesser extent,invest in foreign stocks (up to 10% of total assets) or exchange traded funds in pursuit of its investment objective. Theportfolio may, but need not, invest in derivatives, including stock index futures and options to manage or hedge risk. Theportfolio may sell securities for a variety of reasons, such as to secure gains, limit losses, or re-deploy assets into morepromising opportunities.






2

TTRPSC-2


• Exchange Traded Funds – Equity-based ETFs are subject to risks similar to those of stocks; fixed income-basedETFs are subject to risks similar to those of fixed-income securities. ETF shares may trade at a premium or discountto net asset value. ETFs are subject to secondary market trading risks. In addition, a portfolio will bear a pro rataportion of the operating expenses of an ETF in which it invests.







3

TTRPSC-3



• Small Capitalization Companies – The portfolio will be exposed to additional risks as a result of its investmentsin the securities of small capitalization companies. Small capitalization companies may be more at risk than largercapitalization companies because, among other things, they may have limited product lines, operating history, marketor financial resources, or because they may depend on limited management groups. The prices of securities of smallcapitalization companies generally are more volatile than those of larger capitalization companies and are more likelyto be adversely affected than larger capitalization companies by changes in earnings results and investor expectationsor poor economic or market conditions. Securities of small capitalization companies may underperform largercapitalization companies, may be harder to sell at times and at prices the portfolio managers believe appropriate andmay offer greater potential for losses.




2013201220112010200920082007200620052004

1.69%15.69%

44.07%

10.37% 10.61%3.59% 9.61%

-36.25%

34.42%38.70%




Initial Class 44.07% 25.88% 10.81% 05/03/1999Service Class 43.70% 25.57% 10.55% 05/01/2003MSCI U.S. Small Cap Growth Index (reflects nodeduction for fees, expenses or taxes) 44.50% 25.43% 11.18%

4

TTRPSC-4

Management:


Transamerica Asset Management, Inc. T. Rowe Price Associates, Inc.

Portfolio Manager:

Sudhir Nanda, CFA, Portfolio Manager since 2006






5SPST0514TRPSCV

TTRPSC-5

TRANSAMERICA TS&W INTERNATIONAL EQUITY VPSummary Prospectus



Investment Objective: Seeks maximum long-term total return, consistent with reasonable risk to principal, byinvesting in a diversified portfolio of common stocks of primarily non-U.S. issuers.






Management fees1 0.74% 0.74%Distribution and service (12b-1) fees 0.00% 0.25%Other expenses 0.23% 0.23%

Recaptured expense2 0.02% 0.02%All other expenses 0.21% 0.21%

Total annual fund operating expenses 0.97% 1.22%1 Management fees have been restated to reflect a reduction in advisory fees.

2 Contractual arrangements have been made with the portfolio’s investment adviser, Transamerica Asset Management, Inc. (“TAM”), through May 1, 2015, to waivefees and/or reimburse portfolio expenses to the extent that the portfolio’s total operating expenses exceed 1.07%, excluding, as applicable, 12b-1 fees, acquired fundfees and expenses, interest, taxes, brokerage commissions, dividend and interest expenses on securities sold short, extraordinary expenses and other expenses notincurred in the ordinary course of the portfolio’s business. TAM is entitled to reimbursement by the portfolio of fees waived or expenses reduced during any of theprevious 36 months if on any day or month the estimated annualized portfolio operating expenses are less than the cap.


1

TTSW-1




Principal Investment Strategies: Under normal circumstances, the portfolio seeks to achieve its investment objectiveby investing at least 80% of its net assets (plus the amount of borrowings, if any, for investment purposes) in equitysecurities of foreign companies representing at least three countries other than the United States. The portfolio’ssub-adviser, Thompson, Siegel & Walmsley LLC (the “sub-adviser”), currently anticipates investing in at least 12countries other than the United States. The sub-adviser will emphasize established companies in individual foreignmarkets and will attempt to stress companies and markets that it believes are undervalued. The portfolio expects capitalgrowth to be the predominant component of its total return.

Generally, the portfolio will invest primarily in common stocks of companies listed on foreign securities exchanges, but itmay also invest in depositary receipts including American Depositary Receipts (“ADRs”), Global Depositary Receipts(“GDRs”) and European Depositary Receipts (“EDRs”). Although the portfolio will emphasize larger, more seasoned orestablished companies, it may invest in companies of varying size as measured by assets, sales or market capitalization.The portfolio will invest primarily in securities of companies domiciled in developed countries, but may invest up to 10%of its assets in securities of companies in developing countries. It is expected that investments will be diversifiedthroughout the world and within markets in an effort to minimize specific country and currency risks.

The sub-adviser employs a relative value process utilizing a combination of quantitative and qualitative methods based ona four-factor valuation screen designed to outperform the Morgan Stanley Capital International EAFE Index. Thesub-adviser’s analysts also perform rigorous fundamental analysis. A portfolio composed of 80-100 stocks is selected as aresult of this process. The sub-adviser generally limits its investment universe to those companies with a minimum of threeyears of operating history. The sub-adviser employs a consistent sell discipline which includes a significant negativeearnings revision, a stock being sold when the catalyst is no longer valid or another stock presents a more attractiveopportunity.





2

TTSW-2









• Market – The market prices of the portfolio’s securities may go up or down, sometimes rapidly or unpredictably, dueto general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes ininterest rates or currency rates, lack of liquidity in the markets or adverse investor sentiment. Adverse marketconditions may be prolonged and may not have the same impact on all types of securities. Market prices of securitiesalso may go down due to events or conditions that affect particular sectors, industries or issuers. When market pricesfall, the value of your investment will go down. The portfolio may experience a substantial or complete loss on anyindividual security. The global financial crisis that began in 2008 has caused a significant decline in the value andliquidity of many securities and unprecedented volatility in the markets. Governmental and non-governmental issuers(notably in Europe) have defaulted on, or been forced to restructure their debts; and many other issuers have faceddifficulties obtaining credit or refinancing existing obligations. These market conditions may continue, worsen orspread, including in the United States, Europe and elsewhere. Further defaults or restructurings by governments andothers of their debt could have additional adverse effects on economies, financial markets and asset valuations aroundthe world. In response to the crisis, the U.S. government and the Federal Reserve, as well as certain foreigngovernments and their central banks have taken steps to support financial markets, including by keeping interest rates

3

TTSW-3

low. More recently, the Federal Reserve has reduced its market support activities. Further reduction or withdrawal ofthis support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeedingcould negatively affect financial markets generally and increase market volatility as well as reduce the value andliquidity of certain securities. This environment could make identifying investment risks and opportunities especiallydifficult for the sub-adviser. Whether or not the portfolio invests in securities of issuers located in or with significantexposure to countries experiencing economic and financial difficulties, the value and liquidity of the portfolio’sinvestments may be negatively affected. In addition, policy and legislative changes in the United States and in othercountries are affecting many aspects of financial regulation. The impact of these changes on the markets, and thepractical implications for market participants, may not be fully known for some time.






Prior to May 1, 2013, the portfolio had a different sub-adviser, a different investment objective and used differentinvestment strategies.


2013201220112010200920082007200620052004

-14.29%

16.75%24.34%

16.04% 13.79%23.51%

15.60%

-38.83%

8.48%

25.88%


4

TTSW-4



Initial Class 24.34% 11.18% 6.96% 04/08/1991Service Class 24.07% 10.91% 6.68% 05/01/2003MSCI Europe, Australasia, Far East Index (reflectsno deduction for fees, expenses or taxes) 23.29% 12.96% 7.39%

Management:


Transamerica Asset Management, Inc. Thompson, Siegel & Walmsley LLC

Portfolio Manager:

Brandon H. Harrell, CFA, Portfolio Manager since 2013






5SPST0514TSWIE

TTSW-5

TRANSAMERICA TORRAY CONCENTRATED GROWTH VP(FORMERLY, TRANSAMERICA BNP PARIBAS LARGE CAP GROWTH VP)

Summary ProspectusMay 1, 2014

Class Initial & Service& Ticker Not Applicable

This summary prospectus is designed to provide shareholders with key portfolio information in a clear and concise format.Before you invest, you may want to review the portfolio’s prospectus, which contains more information about the portfolio andits risks. You can find the portfolio’s prospectus and other information about the portfolio, including the portfolio’s statement ofadditional information and most recent reports to shareholders, online at www.transamericaseriestrust.com. You can also get thisinformation at no cost by calling 866-414-6349 or by sending an e-mail request to [email protected], or fromyour financial professional. The portfolio’s prospectus, dated May 1, 2014, and statement of additional information, datedMay 1, 2014, as supplemented from time to time, and the independent registered public accounting firm’s report and financialstatements in the portfolio’s annual report to shareholders, dated December 31, 2013, are incorporated by reference into thissummary prospectus.

Investment Objective: Seeks to achieve long-term growth of capital.

Fees and Expenses: This table describes the fees and expenses that you may pay if you buy and hold portfolio shares, but itdoes not reflect any charges that are, or may be, imposed under your variable life insurance policy or variable annuity contract. Ifsuch charges were reflected, fees would be higher.



Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)Class of Shares

Initial ServiceManagement fees1 0.65% 0.65%Distribution and service (12b-1) fees 0.00% 0.25%Other expenses 0.08% 0.08%Total annual fund operating expenses 0.73% 0.98%

1 Management fees have been restated to reflect a reduction in advisory fees.

Example: This Example is intended to help you compare the cost of investing in the portfolio with the cost of investing in othermutual funds. The Example assumes that you invest $10,000 in the portfolio for the time periods indicated and then redeem allshares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that theportfolio’s operating expenses remain the same. The Example does not reflect charges that are, or may be, imposed under yourvariable life insurance policy or variable annuity contract. If such charges were reflected, costs would be higher. Although youractual costs may be higher or lower, based on these assumptions your costs would be:


Portfolio Turnover: The portfolio pays transaction costs, such as commissions, when it buys and sells securities (or “turnsover” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected inannual portfolio operating expenses or in the Example, affect the portfolio’s performance.

During the most recent fiscal year, the portfolio turnover rate for the portfolio was 153% of the average value of its portfolio.

1

TTCG-1

Principal Investment Strategies: Under normal circumstances, the portfolio’s sub-adviser, Torray LLC (the “sub-adviser”),will invest at least 80% of the portfolio’s net assets (plus the amount of borrowings, if any, for investment purposes) in equitysecurities of large capitalization companies with proven records of increasing earnings on a consistent and sustainable basis. Theportfolio considers large capitalization companies to be those companies with market capitalizations of $5 billion or more at thetime of purchase. Sustainable growth is a product of businesses generally characterized by durable competitive advantages, highreturns on and efficient use of capital, low financial and operating volatility, high levels of recurring revenue and low exposureto cyclical trends. Companies are reviewed on a fundamental basis in the context of long-term secular themes.

The portfolio employs a concentrated approach, investing in 25 to 30 stocks, with a long-term orientation and a quality focus.Correlation of securities and underlying businesses is considered in an effort to minimize risk within the portfolio. Initialpositions range from 2% to 3% of assets and may be increased over time to between 5% and 7%. Individual positions will notexceed 7%. Sector weights are independent of benchmarks, ranging from 0% to 35%, and cash is not employed in a tactical orstrategic manner.

Risk control is an integral part of the sub-adviser’s process. In the context of security selection, the focus is on quality, which isdefined as businesses demonstrating consistent financial and operating metrics through a full business cycle, high returns oncapital, appropriate leverage and reasonable valuation. Risk control is also a primary part of portfolio construction. In order toachieve effective diversification, correlation among existing and prospective holdings is measured through multiple periods,assigning preference to issues exhibiting low correlation to the portfolio and among sectors. Excess (positive or negative)relative performance also initiates a review of a security by the sub-adviser.

Positions are reduced or sold if they exhibit excess valuation, reach sector or position limits, show increased business volatility,are replaced by higher conviction ideas or fail to fulfill the original investment thesis.

Under adverse or unstable market, economic or political conditions, the portfolio may take temporary defensive positions in cashand short-term debt securities without limit. During periods of defensive investing, it will be more difficult for the portfolio toachieve its objective.

Principal Risks: Risk is inherent in all investing. Many factors affect the portfolio’s performance. There is no assurance theportfolio will meet its investment objective. The value of your investment in the portfolio, as well as the amount of return youreceive on your investment, may fluctuate significantly. You may lose part or all of your investment in the portfolio or yourinvestment may not perform as well as other similar investments. The following is a summary description of principal risks (inalphabetical order) of investing in the portfolio. You may lose money if you invest in this portfolio.

• Cash Management and Defensive Investing – The value of investments held by the portfolio for cash managementor defensive investing purposes can fluctuate. Like other fixed income securities, cash and cash equivalent securities aresubject to risk, including market, interest rate and credit risk. If the portfolio holds cash uninvested, the portfolio will besubject to the credit risk of the depository institution holding the cash, it will not earn income on the cash and the portfolio’syield will go down. To the extent that the portfolio’s assets are used for cash management or defensive investing purposes, itmay not achieve its objective.

• Equity Securities – Equity securities represent an ownership interest in an issuer, rank junior in a company’s capitalstructure and consequently may entail greater risk of loss than debt securities. Equity securities include common andpreferred stocks. Stock markets are volatile. The price of equity securities fluctuates based on changes in a company’sfinancial condition and overall market and economic conditions. If the market prices of the equity securities owned by theportfolio fall, the value of your investment in the portfolio will decline.

• Expenses – Your actual costs of investing in the portfolio may be higher than the expenses shown in this prospectus for avariety of reasons. For example, expense ratios may be higher than those shown if overall net assets decrease. Net assets aremore likely to decrease and portfolio expense ratios are more likely to increase when markets are volatile.

• Focused Investing – To the extent the portfolio invests in one or more countries, regions, sectors or industries, or in alimited number of issuers, the portfolio will be more susceptible to negative events affecting those countries, regions,sectors, industries or issuers. Local events, such as political upheaval, financial troubles, or natural disasters may disrupt acountry’s or region’s securities markets. Geographic risk is especially high in emerging markets.

• Growth Stocks – Returns on growth stocks may not move in tandem with returns on other categories of stocks or themarket as a whole. Growth stocks may be particularly susceptible to larger price swings or to adverse developments. Growthstocks as a group may be out of favor and underperform the overall equity market for a long period of time, for example,while the market favors “value” stocks.

2

TTCG-2

• Manager – The sub-adviser to the portfolio actively manages the portfolio’s investments. Consequently, the portfolio issubject to the risk that the methods and analyses employed by the sub-adviser may not produce the desired results. Thiscould cause the portfolio to lose value or its results to lag relevant benchmarks or other funds with similar objectives.

• Market – The market prices of the portfolio’s securities may go up or down, sometimes rapidly or unpredictably, due togeneral market conditions, such as real or perceived adverse economic or political conditions, inflation, changes in interestrates or currency rates, lack of liquidity in the markets or adverse investor sentiment. Adverse market conditions may beprolonged and may not have the same impact on all types of securities. Market prices of securities also may go down due toevents or conditions that affect particular sectors, industries or issuers. When market prices fall, the value of your investmentwill go down. The portfolio may experience a substantial or complete loss on any individual security. The global financialcrisis that began in 2008 has caused a significant decline in the value and liquidity of many securities and unprecedentedvolatility in the markets. Governmental and non-governmental issuers (notably in Europe) have defaulted on, or been forcedto restructure their debts; and many other issuers have faced difficulties obtaining credit or refinancing existing obligations.These market conditions may continue, worsen or spread, including in the United States, Europe and elsewhere. Furtherdefaults or restructurings by governments and others of their debt could have additional adverse effects on economies,financial markets and asset valuations around the world. In response to the crisis, the U.S. government and the FederalReserve, as well as certain foreign governments and their central banks have taken steps to support financial markets,including by keeping interest rates low. More recently, the Federal Reserve has reduced its market support activities. Furtherreduction or withdrawal of this support, failure of efforts in response to the crisis, or investor perception that such efforts arenot succeeding could negatively affect financial markets generally and increase market volatility as well as reduce the valueand liquidity of certain securities. This environment could make identifying investment risks and opportunities especiallydifficult for the sub-adviser. Whether or not the portfolio invests in securities of issuers located in or with significantexposure to countries experiencing economic and financial difficulties, the value and liquidity of the portfolio’s investmentsmay be negatively affected. In addition, policy and legislative changes in the United States and in other countries areaffecting many aspects of financial regulation. The impact of these changes on the markets, and the practical implicationsfor market participants, may not be fully known for some time.

• Portfolio Selection – The sub-adviser’s judgment about the quality, relative yield or value of, or market trends affecting,a particular security or sector, or about interest rates, may be incorrect.

Performance: The bar chart and the table below provide some indication of the risks of investing in the portfolio. The barchart shows how the portfolio’s performance has varied from year to year. The table shows how the portfolio’s average annualtotal returns for different periods compare to the returns of a broad measure of market performance. The performancecalculations do not reflect any charges that are, or may be, imposed under your variable life insurance policy or variable annuitycontract. If such charges were reflected, performance would be lower. Absent any limitation of the portfolio’s expenses, totalreturns would be lower.

As with all mutual funds, past performance is not a prediction of future results. Updated performance information is available onour website at www.transamericaseriestrust.com/content/Performance.aspx or by calling 1-888-233-4339.

Prior to May 1, 2013, the portfolio was named Transamerica Multi Managed Large Cap Core VP, had two different sub-advisers,a different investment objective and used different investment strategies. The performance set forth prior to that date isattributable to the previous sub-advisers.

Prior to May 1, 2014, the portfolio was named Transamerica BNP Paribas Large Cap Growth VP, had a different sub-adviser, adifferent investment objective and used different investment strategies. The performance set forth for the period betweenMay 1, 2013 and April 30, 2014 is attributable to a previous sub-adviser.


2013201220112010200920082007200620052004

-2.27%

17.13%33.10%

12.75% 9.41% 10.33% 9.25%

-42.08%

19.17%

45.41%

3

TTCG-3

Quarter Ended ReturnBest Quarter: 12/31/2013 12.01%Worst Quarter: 06/30/2013 1.16%



Initial Class 33.10% 21.43% 8.56% 04/08/1991Service Class 32.81% 21.13% 8.30% 05/01/2003Russell 1000® Growth Index (reflects no deduction forfees, expenses or taxes) 33.48% 20.39% 7.83%S&P 500® (reflects no deduction for fees, expenses ortaxes) 32.39% 17.94% 7.41%

Management:


Transamerica Asset Management, Inc. Torray LLC

Portfolio Manager:

Nicholas C. Haffenreffer, Portfolio Manager since 2014

Purchase and Sale of Portfolio Shares: Shares of the portfolio may only be purchased or redeemed through variable lifeinsurance policies and variable annuity contracts offered by the separate accounts of participating life insurance companies.Please refer to the corresponding prospectus of the policy or annuity contract that you have chosen for more information aboutthe terms of the offering. Shares of the portfolio may also be sold to the asset allocation portfolios and to other funds of funds.

The portfolio does not have any initial or subsequent investment minimums. However, your insurance company may imposeinvestment minimums.

The portfolio will not pay any 12b-1 fees on Initial Class shares through May 1, 2015. The maximum 12b-1 fee on Initial Classshares is 0.15%. The portfolio reserves the right to pay such fees after that date.

Tax Information: Distributions made by the portfolio to an insurance company separate account, and exchanges andredemptions of portfolio shares made by the separate account, ordinarily do not cause the owners of insurance policies andannuity contracts invested in the separate account to recognize income or gain for federal income tax purposes. Please refer tothe corresponding prospectus of the policy or annuity contract that you have chosen for more information regarding the taxconsequences of your investment.

Payments to Broker-Dealers and Other Financial Intermediaries: If you purchase the portfolio through abroker-dealer or other financial intermediary (such as a bank or insurance company), the portfolio and/or its affiliates may paythe intermediary for the sale of portfolio shares and related services. These payments may create a conflict of interest byinfluencing the broker-dealer or other intermediary and your salesperson to recommend the portfolio over another investment.Ask your salesperson or visit your financial intermediary’s website for more information.

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TRANSAMERICA WMC DIVERSIFIED GROWTH VPSummary Prospectus



Investment Objective: Seeks to maximize long-term growth.










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Principal Investment Strategies: The portfolio invests, under normal circumstances, at least 80% of its net assets(plus the amount of borrowings, if any, for investment purposes) in domestic common stocks. The portfolio investsprimarily in common stocks of growth-oriented companies. Each stock is evaluated and ranked on a consistent set ofgrowth, valuation, and quality criteria and the portfolio will seek diversified sources of return from these criteria.

The portfolio’s sub-adviser, Wellington Management Company, LLP (the “sub-adviser”), uses what is sometimes referredto as a “bottom up” approach, which is the use of fundamental analysis to identify specific securities within industries orsectors for purchase or sale. A “bottom-up” approach is looking at individual companies against the context of broadermarket factors.

The sub-adviser continually monitors every company in the portfolio for fundamental attractiveness. The portfoliotypically sells an investment when the investment achieves its anticipated potential, the company begins to showdeteriorating relative fundamentals or alternative investments become sufficiently more attractive.

Consistent with the portfolio’s objective and other policies, the portfolio may invest to a lesser extent in derivatives,including futures, forwards, options and swaps. The portfolio may invest up to 20% of its total assets in foreign securities(not including American Depositary Receipts, American Depositary Shares or U.S. dollar denominated securities offoreign issuers).







• Derivatives – Using derivatives exposes the portfolio to additional risks and can increase portfolio losses and reduceopportunities for gains when market prices, interest rates or the derivatives themselves behave in a way not anticipatedby the portfolio. Using derivatives also can have a leveraging effect and increase portfolio volatility. The portfolio may

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also have to sell assets at inopportune times to satisfy its obligations. Derivatives may be difficult to sell, unwind orvalue, and the counterparty may default on its obligations to the portfolio. The portfolio’s investments in derivativeinstruments may involve a small investment relative to the amount of investment exposure assumed and may result inlosses exceeding the amounts invested in those instruments. Certain derivatives have the potential for unlimited loss,regardless of the size of the initial investment. The U.S. government is in the process of adopting and implementingregulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reportingrequirements. The ultimate impact of the regulations remains unclear. Additional regulation of derivatives may makethem more costly, may limit their availability, may disrupt markets or may otherwise adversely affect their value orperformance.







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Prior to April 9, 2010, the portfolio was named Transamerica Equity VP, had a different sub-adviser and used differentinvestment strategies. The performance set forth prior to April 8, 2010 is attributable to a previous sub-adviser.


2013201220112010200920082007200620052004

-3.73%

13.17%

32.46%

15.81% 16.54%8.71%

16.29%

-46.00%

17.81%29.20%




Initial Class 32.46% 17.04% 7.30% 12/31/1980Service Class 32.13% 16.75% 7.04% 05/01/2003Russell 1000® Growth Index (reflects no deductionfor fees, expenses or taxes) 33.48% 20.39% 7.83%


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Management:


Transamerica Asset Management, Inc. Wellington Management Company, LLP

Portfolio Manager:

Paul E. Marrkand, CFA, Portfolio Manager since 2010






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TRANSAMERICA ADVISORS LIFE INSURANCE COMPANY OF NEW YORK (A WHOLLY OWNED SUBSIDIARY OF AEGON USA, LLC)

BALANCE SHEETS

See Notes to Financial Statements

December 31,

(dollars in thousands, except share data) 2013 2012

ASSETS

Investments

Fixed maturity available-for-sale securities, at estimated fair value (amortized cost:2013 - $134,183; 2012 - $130,665) $ 142,074 $ 146,927

Equity available-for-sale securities, at estimated fair value (cost: 2013 - $1,373;2012 - $1,372) 1,402 1,521

Policy loans 49,662 53,132

Total investments 193,138 201,580

Cash and cash equivalents 28,773 24,402 Accrued investment income 2,820 2,931 Deferred policy acquisition costs 354 270 Deferred sales inducements 127 98 Value of business acquired 24,634 25,207 Goodwill 500 500 Other assets 2,093 2,762 Separate Accounts assets 551,306 526,437

Total Assets $ 803,745 $ 784,187

LIABILITIES AND STOCKHOLDER’S EQUITY

Liabilities

Policyholder liabilities and accruals

Policyholder account balances $ 97,211 $ 104,137 Future policy benefits 19,256 16,529 Claims and claims settlement expenses 1,826 1,777

Total policyholder liabilities and accruals 118,293 122,443

Checks not yet presented for payment 775 2,249 Derivative liabilities 27 - Income taxes - net 5,357 5,146 Affiliated payables - net 444 407 Reinsurance payables - net 26 27 Payables for investments purchased - net 16 90 Other liabilities 833 1,582 Separate Accounts liabilities 551,306 526,437

Total Liabilities 677,077 658,381

Stockholder’s Equity

Common stock ($10 par value; 220,000 shares authorized, issued and outstanding) 2,200 2,200 Additional paid-in capital 128,638 128,638 Accumulated other comprehensive income, net of taxes 4,906 9,765 Retained deficit (9,076) (14,797)

Total Stockholder’s Equity 126,668 125,806

Total Liabilities and Stockholder’s Equity $ 803,745 $ 784,187


STATEMENTS OF INCOME


For the Years Ended December 31,

(dollars in thousands) 2013 2012 2011

Revenues

Policy charge revenue $ 12,496 $ 12,878 $ 13,975 Net investment income 9,200 9,257 10,033 Net realized investment gains (losses)

Other-than-temporary impairment losses on securities - - (62) Portion of other-than-temporary impairment losses recognized in other

comprehensive income - - 62 Portion of other-than-temporary impairments previously recognized in other

comprehensive income - (6) (22)

Net other-than-temporary impairment losses on securities recognized in income - (6) (22)

Net realized investment gains (losses), excluding other-than-temporary impairment losses on securities 741 (60) 1,115

Net realized investment gains (losses) 741 (66) 1,093

Net derivative losses (1,139) (917) (521)

Total Revenues 21,298 21,152 24,580

Benefits and Expenses

Interest credited to policyholder liabilities 4,404 4,566 5,351 Policy benefits (net of reinsurance recoveries: 2013 - $0; 2012 - $245;

2011 - $132) 4,864 (108) 5,042 Reinsurance premium ceded 323 320 363 Amortization (accretion) of deferred policy acquisition costs (84) 195 (97) Amortization of value of business acquired 837 2,259 1,648 Insurance expenses and taxes 3,828 3,895 4,524

Total Benefits and Expenses 14,172 11,127 16,831

Income Before Taxes 7,126 10,025 7,749

Income Tax Expense 1,405 2,832 1,514

Net Income $ 5,721 $ 7,193 $ 6,235


STATEMENTS OF COMPREHENSIVE INCOME




Net Income $ 5,721 $ 7,193 $ 6,235

Other Comprehensive Income (Loss)

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

Net unrealized holding gains arising during the period (8,572) 4,204 3,922 Reclassification adjustment for (gains) losses included in net income 107 106 (355)

(8,465) 4,310 3,567

Net unrealized other-than-temporary impairments on securities

Net unrealized other-than-temporary impairment losses arising during the period - - (62) Change in previously recognized unrealized other-than-temporary impairments (26) 172 58 Reclassification adjustment for other-than-temporary impairments included in net

income - 6 22

(26) 178 18

Adjustments

Policyholder liabilities 641 (640) (369) Value of business acquired 258 (99) (405) Deferred income taxes 2,733 (1,331) (1,013)

3,632 (2,070) (1,787)

Total other comprehensive income (loss), net of taxes (4,859) 2,418 1,798

Comprehensive Income $ 862 $ 9,611 $ 8,033


STATEMENTS OF STOCKHOLDER’S EQUITY




Common Stock $ 2,200 $ 2,200 $ 2,200

Additional Paid-in Capital $ 128,638 $ 128,638 $ 128,638

Accumulated Other Comprehensive Income

Balance at beginning of year $ 9,765 $ 7,347 $ 5,549 Total other comprehensive income (loss), net of taxes (4,859) 2,418 1,798

Balance at end of year $ 4,906 $ 9,765 $ 7,347

Retained Deficit

Balance at beginning of year $ (14,797) $ (21,990) $ (3,225) Net income 5,721 7,193 6,235 Cash dividend paid to AEGON USA, LLC - - (25,000)

Balance at end of year $ (9,076) $ (14,797) $ (21,990)

Total Stockholder’s Equity $ 126,668 $ 125,806 $ 116,195


STATEMENTS OF CASH FLOWS

(1) Included in net increase (decrease) in cash and cash equivalents is interest received (2013 - $0; 2012 - $0; 2011 - $0); interest paid (2013 - $0; 2012 - $0; 2011 - $1); income taxes paid (2013 - $1,520; 2012 - $2,000; 2011 - $750); and income taxes received (2013 - $3,060; 2012 - $0; 2011 - $0) See Notes to Financial Statements



CASH FLOWS FROM OPERATING ACTIVITIES

Net income $ 5,721 $ 7,193 $ 6,235 Adjustments to reconcile net income to net cash and cash equivalents provided

by operating activities:

Change in deferred policy acquisition costs (84) 196 (102) Change in deferred sales inducements (29) 72 (37) Change in value of business acquired 837 2,259 1,648 Change in benefit reserves 3,129 (1,916) 2,065 Change in income tax accruals 2,944 833 764 Change in claims and claims settlement expenses 49 (3,407) 1,825 Change in other operating assets and liabilities, net (5) 1,775 (102) Change in checks not yet presented for payment (1,474) 670 96 Amortization of investments 256 134 248 Interest credited to policyholder liabilities 4,404 4,566 5,351 Net change in fixed maturity trading securities - (6) 9 Net realized investment (gains) losses (741) 66 (1,093) Net derivative losses 1,139 917 521

Net cash and cash equivalents provided by operating activities 16,146 13,352 17,428

CASH FLOWS FROM INVESTING ACTIVITIES

Sales of available-for-sale securities 14,367 5,702 49,697 Maturities of available-for-sale securities 10,098 13,684 4,242 Purchases of available-for-sale securities (27,505) (12,709) (54,710) Sales of fixed maturity trading securities - 144 1,148 Net settlements on futures contracts (1,112) (917) (521) Policy loans on insurance contracts, net 3,470 300 5,406

Net cash and cash equivalents provided by (used in) investing activities (682) 6,204 5,262

CASH FLOWS FROM FINANCING ACTIVITIES

Policyholder deposits 286 380 706 Policyholder withdrawals (11,379) (7,233) (16,797) Cash dividend paid to AEGON USA, LLC - - (25,000)

Net cash and cash equivalents used in financing activities (11,093) (6,853) (41,091)

Net increase (decrease) in cash and cash equivalents (1) 4,371 12,703 (18,401) Cash and cash equivalents, beginning of year 24,402 11,699 30,100

Cash and cash equivalents, end of year $ 28,773 $ 24,402 $ 11,699


NOTES TO FINANCIAL STATEMENTS (Dollars in Thousands)

Note 1. Summary of Significant Accounting Policies Basis of Presentation Transamerica Advisors Life Insurance Company of New York (“TALICNY” or the “Company”) is a wholly owned subsidiary ofAEGON USA, LLC (“AUSA”). AUSA is an indirect wholly owned subsidiary of AEGON N.V., a limited liability share companyorganized under Dutch law. AEGON N.V. and its subsidiaries and joint ventures have life insurance and pension operations in overtwenty countries in Europe, the Americas, and Asia and are also active in savings and investment operations, accident and healthinsurance, general insurance and limited banking operations in a number of these countries.

The Company is a life insurance company, who conducts its business primarily in the annuity markets and to a lesser extent in the lifeinsurance markets of the financial services industry. The Company is domiciled in the State of New York and is currently licensed tosell insurance and annuities in nine states. Currently, the Company is not issuing new life insurance, variable annuity and marketvalue adjusted annuity products.

Basis of Reporting The accompanying financial statements have been prepared in conformity with United States generally accepted accountingprinciples (“GAAP”). The Company also submits financial statements to insurance industry regulatory authorities, which are preparedon the basis of statutory accounting principles (“SAP”). The significant accounting policies and related judgments underlying theCompany’s financial statements are summarized below. It is the intention of the Company to merge with an affiliated life insurancecompany, Transamerica Financial Life Insurance Company, during the second half of 2014, at which time the Company will cease toexist.

Certain reclassifications and format changes have been made to prior period financial statements, where appropriate, to conform tothe current period presentation. In the Statements of Income, derivatives activity has been reclassified from net realized investmentgains (losses) and net investment income to a new line item called net derivative losses. This was done to present derivatives activityseparate from other investment related results. In the Balance Sheets, a liability balance representing outstanding checks has beenmoved from the cash and cash equivalents line to a new line item called checks not yet presented for payment. These reclassificationshave no effect on net income or stockholder’s equity of the prior period.

Accounting Estimates and Assumptions The preparation of financial statements requires management to make estimates and assumptions affecting the reported amounts ofassets, liabilities, revenues and expenses and the disclosures of contingent assets and liabilities. Those estimates are inherently subjectto change and actual results could differ from those estimates. Included among the material (or potentially material) reported amountsand disclosures that require extensive use of estimates are: fair value of certain invested assets, asset valuation allowances, deferredpolicy acquisition costs, deferred sales inducements, value of business acquired, goodwill, policyholder liabilities, income taxes, andpotential effects of unresolved litigated matters.

Investments Fixed maturity and equity securities The Company’s investments consist principally of fixed maturity and equity securities that are classified as available-for-sale (“AFS”) which are reported at estimated fair value. In addition, the Company held fixed maturity securities which contain a conversion toequity feature, which is considered an embedded derivative. These fixed maturity securities have been classified as trading and arereported at estimated fair value. During 2012, the last of these securities converted so the Company no longer holds any of these securities as of December 31, 2013 and 2012. The fair values of fixed maturity and equity securities are determined by managementafter taking into consideration several sources of data. When available, the Company uses quoted market prices in active markets todetermine the fair value of its investments. The Company’s valuation policy utilizes a pricing hierarchy which dictates that publiclyavailable prices are initially sought from indices and third-party pricing services. In the event that pricing is not available from thesesources, those securities are submitted to brokers to obtain quotes. If broker quotes are not available then securities are priced usinginternal cash flow modeling techniques. These valuation methodologies commonly use reported trades, bids, offers, issuer spreads,benchmark yields, estimated prepayment speeds, and/or estimated cash flows.

To understand the valuation methodologies used by third-party pricing services, the Company reviews and monitors their applicablemethodology documents. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, the Companyperforms in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is todemonstrate that the Company can corroborate detailed information such as assumptions, inputs and methodologies used in pricingindividual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.

Each month, the Company performs an analysis of the information obtained from third-party services and brokers to ensure that the information is reasonable and produces a reasonable estimate of fair value. The Company considers both qualitative and quantitativefactors as part of this analysis, including but not limited to, recent transactional activity for similar fixed maturities, review of pricingstatistics and trends, and consideration of recent relevant market events. Other controls and procedures over pricing received fromindices, third-party pricing services, or brokers include validation checks such as exception reports which highlight significant pricechanges, stale prices or un-priced securities. Additionally, the Company performs back testing on a sample basis. Back testinginvolves selecting a sample of securities trades and comparing the prices in those transactions to prices used for financial reporting.Significant variances between the price used for financial reporting and the transaction price are investigated to explain the cause ofthe difference.

The Company’s portfolio of private placement securities is valued using a matrix pricing methodology. The pricing methodology isobtained from a third party service and indicates current spreads for securities based on weighted average life, credit rating andindustry sector. Monthly, the Company reviews the matrix to ensure the spreads are reasonable by comparing them to observedspreads for similar securities traded in the market. In order to account for the illiquid nature of these securities, illiquidity premiumsare included in the valuation and are determined based upon the pricing of recent transactions in the private placement market, as wellas comparing the value of the privately offered security to a similar public security. The impact of the illiquidity premium to theoverall valuation is less than 1% of the fair value.

For fixed maturity securities, premiums are amortized to the earlier of the call or maturity date, discounts are accreted to the maturitydate, and interest income is accrued daily. For equity securities, dividends are recognized on the ex-dividend date. Investment transactions are recorded on the trade date. Realized gains and losses on the sale or maturity of investments are determined on thebasis of specific identification.

Changes in the fair value of fixed maturity and equity securities deemed AFS are reported as a component of accumulated othercomprehensive income (loss), net of taxes on the Balance Sheets and are not reflected in the Statements of Income until a saletransaction occurs or when credit-related declines in estimated fair value are deemed other-than-temporary. Changes in fair value of fixed maturity securities deemed trading are reported as a component of net investment income.

Other-than-temporary impairments (“OTTI”) The Company regularly reviews each investment in its fixed maturity and equity AFS securities portfolio to evaluate the necessity ofrecording impairment losses for other-than-temporary declines in the fair value of investments. Management makes this determinationthrough a series of discussions with the Company’s portfolio managers and credit analysts, and information obtained from external sources (i.e; company announcements, ratings agency announcements, or news wire services). For fixed maturity AFS securities, theCompany also considers whether it is more likely than not that it will not be required to sell the debt security before its anticipatedrecovery. The factors that may give rise to a potential OTTI include, but are not limited to, i) certain credit-related events such as default of principal or interest payments by the issuer, ii) bankruptcy of issuer, iii) certain security restructurings, and iv) fair marketvalue less than cost or amortized cost for an extended period of time. In the absence of a readily ascertainable market value, theestimated fair value on these securities represents managements’s best estimate and is based on comparable securities and otherassumptions as appropriate. Management bases this determination on the most recent information available.

For equity securities, once management determines a decline in the value of an AFS security is other-than-temporary, the cost basis of the equity security is reduced to its fair value, with a corresponding charge to earnings.

For fixed maturity AFS securities, an OTTI must be recognized in earnings when an entity either a) has the intent to sell the debtsecurity or b) more likely than not will be required to sell the debt security before its anticipated recovery. If the Company meetseither of these criteria, the OTTI is recognized in earnings in an amount equal to the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date. For fixed maturity AFS securities in unrealized loss positions that donot meet these criteria, the Company must analyze its ability to recover the amortized cost by comparing the net present value ofprojected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows. If the net present value is less than the amortized cost of the investment, an OTTI isrecorded. The OTTI is separated into two pieces: an amount representing the credit loss, where the present value of cash flowsexpected to be collected is less than the amortized cost basis of the security, and an amount related to all other factors (referred to asthe non credit portion). The credit loss is recognized in earnings and the non credit loss is recognized in other comprehensive income(“OCI”), net of applicable taxes and value of business acquired. Management records subsequent changes in the estimated fair value(positive and negative) of available-for-sale debt securities for which non credit OTTI was previously recognized in OCI in OCI-OTTI.

Policy loans Policy loans on insurance contracts are stated at unpaid principal balances. The Company estimates the fair value of policy loans asequal to the book value of the loans. Policy loans are fully collateralized by the account value of the associated insurance contracts,and the spread between the policy loan interest rate and the interest rate credited to the account value held as collateral is fixed.

Derivative Instruments Derivatives are used by the Company to manage risk associated with equity market risk or volatility. Freestanding derivatives arecarried in the Balance Sheets at fair value. If a derivative is not designated as an accounting hedge or its use in managing risk does notqualify for hedge accounting, changes in the fair value of the derivatives are reported in net derivative gains (losses) in the Statementsof Income.

Cash and Cash Equivalents Cash and cash equivalents include cash on hand and on deposit and short-term investments with original maturities of three months or less. Cash and cash equivalents are primarily valued at amortized cost, which approximates fair value.

Checks Not Yet Presented for Payment The Company’s checks not yet presented for payment consists of checks written that have not yet cleared the Company’s bank accounts. The majority of the Company’s bank accounts are zero balance accounts that are funded at the time items clear against theaccount; therefore, the outstanding checks represent immediately payable liabilities. Because the recipients of these checks havegenerally not yet received payment, the Company classifies the outstanding checks as a liability. Checks not yet presented forpayment are classified in the cash flows from operating activities section of the Company’s Statement of Cash Flows.

Value of Business Acquired (“VOBA”), Deferred Policy Acquisition Costs (“DAC”) and Deferred Sales Inducements (“DSI”)

VOBA VOBA represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from theinsurance and annuity contracts in force at the acquisition date. VOBA is based on actuarially determined projections, for each blockof business, of future policy and contract charges, premiums, mortality, policyholder behavior, Separate Account performance,operating expenses, investment returns, and other factors. Actual experience on the purchased business may vary from theseprojections. Revisions in estimates result in changes to the amounts expensed in the reporting period in which the revisions are madeand could result in the impairment of the asset and a charge to income if estimated future gross profits are less than the unamortizedbalance. See Note 4 to the financial statements for further discussion.

DAC The costs of acquiring business, principally commissions, certain expenses related to policy issuance, and certain variable salesexpenses that relate to and vary with the production of new and renewal business are deferred and amortized based on the estimatedfuture gross profits for a group of contracts. DAC are subject to recoverability testing at the time of policy issuance and lossrecognition testing at the end of each reporting period.

DAC for variable annuities is amortized with interest over the anticipated lives of the insurance contracts in relation to the presentvalues of estimated future gross profits from asset-based fees, guaranteed benefit rider fees, contract fees, and surrender charges, lessa provision for guaranteed death and living benefit expenses, policy maintenance expenses, and non-capitalized commissions. Futuregross profit estimates are subject to periodic evaluation with necessary revisions applied against amortization to date. The impact ofrevisions and assumptions to estimates on cumulative amortization is recorded as a charge or credit to current operations, commonlyreferred to as “unlocking”. Changes in assumptions can have a significant impact on the amount of DAC reported and the relatedamortization patterns. In general, increases in the estimated Separate Accounts return and decreases in surrender or mortalityassumptions increase the expected future profitability of the underlying business and may lower the rate of DAC amortization.Conversely, decreases in the estimated Separate Accounts returns and increases in surrender or mortality assumptions reduce theexpected future profitability of the underlying business and may increase the rate of DAC amortization.

At December 31, 2013 and 2012, variable annuities accounted for the Company’s entire DAC asset. See Note 4 to the Financial Statements for further discussion.

DSI The Company offers a sales inducement whereby the contract owner receives a bonus which increases the initial account balance byan amount equal to a specified percentage of the contract owner’s deposit. This amount may be subject to recapture under certaincircumstances. Consistent with DAC, sales inducements for variable annuity contracts are deferred and amortized based on theestimated future gross profits for each group of contracts. These future gross profit estimates are subject to periodic evaluation by theCompany, with necessary revisions applied against amortization to date. The impact of these revisions on cumulative amortization isrecorded as a charge or credit to current operations, commonly referred to as “unlocking”. It is reasonably possible that estimates of future gross profits could be reduced in the future, resulting in a material reduction in the carrying amount of the DSI asset.

The expense and the subsequent capitalization and amortization are recorded as a component of policy benefits in the Statements ofIncome. At December 31, 2013 and 2012, variable annuities accounted for the Company’s entire DSI asset. See Note 4 to the Financial Statements for further discussion.

Goodwill Goodwill is the excess of the purchase price over the estimated fair value of net assets acquired. Goodwill and intangible assets withindefinite lives are not amortized, but are subject to impairment tests conducted at least annually. Impairment testing is to beperformed using the fair value approach, which requires the use of estimates and judgment, at the “reporting unit” level. A reporting unit represents the operating segment which is the level at which the financial information is prepared and regularly reviewed bymanagement. The entire asset amount has been allocated to annuities. Goodwill is reviewed for indications of value impairment, withconsideration given to financial performance and other relevant factors. In addition, certain events including a significant adversechange in legal factors or the business climate, an adverse action or assessment by a regulator, or unanticipated competition wouldcause the Company to review the carrying amounts of goodwill for impairment. The Company performed annual tests of goodwill atDecember 31, 2013, 2012, and 2011 and determined there was no impairment of goodwill.

Separate Accounts The Company’s Separate Accounts consist of variable annuities and variable life insurance contracts, of which the assets andliabilities are legally segregated and reported as separate captions in the Balance Sheets. Separate Accounts are established inconformity with New York State Insurance Law and are generally not chargeable with liabilities that arise from any other business ofthe Company. Separate Accounts assets may be subject to claims of the Company only to the extent the value of such assets exceedsSeparate Accounts liabilities. The assets of the Separate Accounts are carried at the daily net asset value of the mutual funds in whichthey invest.

Absent any contract provision wherein the Company guarantees either a minimum return or account value upon death orannuitization, the net investment income and net realized and unrealized gains and losses attributable to Separate Accounts assetssupporting variable annuities and variable life contracts accrue directly to the contract owner and are not reported as revenue in theStatements of Income. Mortality, guaranteed benefit fees, policy administration, maintenance, and withdrawal charges associated withSeparate Accounts products are included in policy charge revenue in the Statements of Income.

Policyholder Account Balances The Company’s liability for policyholder account balances represents the contract value that has accrued to the benefit of thepolicyholder as of the Balance Sheet dates. The liability is generally equal to the accumulated account deposits plus interest creditedless policyholders’ withdrawals and other charges assessed against the account balance. Interest-crediting rates for the Company’s fixed rate products are as follows:

These rates may be changed at the option of the Company after initial guaranteed rates expire, unless contracts are subject tominimum interest rate guarantees.

Future Policy Benefits The Company’s liability for future policy benefits consists of liabilities for immediate annuities and liabilities for certain guaranteedbenefits contained in the variable insurance products the Company manufactures. Liabilities for immediate annuities are equal to thepresent value of estimated future payments to or on behalf of policyholders, where the timing and amount of payment generallydepends on policyholder mortality. Interest rates used in establishing such liabilities were in the range of 0.01% to 5.50% during 2013and 2012. See Note 5 to the Financial Statements for further discussion.

Revenue Recognition Revenues for variable annuity contracts consist of policy charges for i) mortality and expense risks, ii) certain guaranteed benefitsselected by the contract owner, iii) administration fees, iv) annual contract maintenance charges, and v) withdrawal charges assessedon contracts surrendered during the withdrawal charge period. Revenues for variable annuity contracts are recognized when policycharges are assessed or earned.

Revenues for variable life insurance contracts consist of policy charges for i) mortality and expense risks, ii) cost of insurance fees,iii) amortization of front-end and deferred sales charges, and iv) withdrawal charges assessed on contracts surrendered during thewithdrawal charge period. Revenues for variable life insurance contracts are recognized when policy charges are assessed or earned.

Revenues for interest-sensitive annuity contracts (market value adjusted annuities, immediate annuities, and single premium deferredannuities) and interest-sensitive life insurance contracts (single premium whole life insurance) consist of i) investment income, ii)gains (losses) on the sale of invested assets, and iii) withdrawal charges assessed on contracts surrendered during the withdrawalcharge period. Revenues for interest-sensitive annuity and life insurance contracts are recognized when investment income andinvestment sales are earned while revenues for contract charges are recognized when assessed or earned.

Claims and Claims Settlement Expenses Liabilities for claims and claims settlement expenses equal the death benefit (plus accrued interest) for claims that have been reportedto the Company but have not settled and an estimate, based upon prior experience, for unreported claims.

Income Taxes The Company provides for income taxes on all transactions that have been recognized in the financial statements in accordance withGAAP guidance. Accordingly, deferred taxes are adjusted to reflect the tax rates at which future taxable amounts will likely be settledor realized. The effects of tax rate changes on future deferred tax liabilities and deferred tax assets, as well as other changes in incometax laws, are recognized in net income (loss) in the year during which such changes are enacted.

The Company is subject to taxes on premiums and is exempt from state income taxes in most states.

Subsequent Events The financial statements are adjusted to reflect events that occurred between the balance sheet date and the date when the financial statements are issued, provided they give evidence of conditions that existed at the balance sheet date.

2013 2012Interest-sensitive life products 4.00% 4.00%Interest-sensitive deferred annuities 3.00% - 4.85% 3.00% - 4.85%

Events that are indicative of conditions that arose after the balance sheet date are disclosed, but do not result in an adjustment of thefinancial statements themselves.

Recent Accounting Guidance

Current Adoption of Recent Accounting Guidance

Accounting Standards Codification (“ASC”) 210, Balance Sheet

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-11, Disclosures about Offsetting Assets and Liabilities, which enhances disclosures about financial instruments and derivativeinstruments that are either offset on the statement of financial position or subject to an enforceable master netting arrangement orsimilar agreement. Entities are required to provide both net and gross information for these assets and liabilities in order to enhancecomparability between those entities that prepare their financial statements on the basis of GAAP and those entities that prepare theirfinancial statements on the basis of International Financial Reporting Standards (“IFRS”). The guidance is effective for annual reporting periods, and interim periods within those years, beginning on or after January 1, 2013. The disclosures required by thisguidance should be applied retrospectively for all comparative periods presented. The Company adopted the guidance on January 1,2013, which affects disclosures but did not impact the Company’s results of operations or financial position.

ASC 220, Comprehensive Income In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other ComprehensiveIncome, which requires an entity to provide information about significant items reclassified out of accumulated other comprehensiveincome (“AOCI”) by component. In addition, an entity is required to present, either on the face of the statement where net income ispresented or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income but only if theamount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For otheramounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The guidance is effective prospectively forannual reporting periods, and interim periods within those years, beginning after December 15, 2012. The Company adopted theguidance on January 1, 2013, which affects disclosures but did not impact the Company’s results of operations or financial position.

ASC 740, Income Taxes In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating LossCarryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The guidance requires that the liability related to certain unrecognized tax benefits should be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss or a taxcredit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. The guidance iseffective prospectively for annual reporting periods, and interim periods within those years, beginning after December 15, 2013, withearly application permitted. The Company early adopted the guidance in the third quarter of 2013, which affects disclosures but didnot impact the Company’s results of operations or financial position. See Note 6 to the Financial Statements for further discussion.

Accounting Guidance Adopted in 2012

ASC 944, Financial Services—Insurance

In October 2010, the FASB issued ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contractswhich modifies the definition of the types of costs incurred by insurance entities that can be capitalized in the acquisition of new andrenewal contracts. An insurance entity may only capitalize incremental direct costs of contract acquisition, the portion of employees’compensation directly related to time spent performing specified acquisition activities for a contract that has actually been acquired,other costs related directly to specified activities that would not have been incurred had the acquisition contract transaction notoccurred, and advertising costs that meet capitalization criteria in other GAAP guidance. The guidance is effective for fiscal years,and interim periods within those years, beginning after December 15, 2011. The Company adopted the guidance prospectively onJanuary 1, 2012. The only acquisition costs being capitalized are renewal commissions; therefore there was no change to the currentpractice of deferring costs. As a result, the adoption did not impact the Company’s results of operations or financial position.

ASC 820, Fair Value Measurements and Disclosures

In May 2011, the FASB issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and DisclosureRequirements in U.S. GAAP and IFRS, which amends current guidance to achieve common fair value measurement and disclosurerequirements in U.S. GAAP and IFRS. Some of the amendments represent clarifications of existing requirements. Other amendmentschange a particular principle or requirement for measuring fair value or disclosing information about fair value measurements. Theguidance is effective for interim and annual periods beginning after December 15, 2011. The Company adopted the guidance onJanuary 1, 2012. The adoption affected disclosures but did not impact the Company’s results of operations or financial position.

ASC 220, Comprehensive Income

Regardless of format, an entity is required to present items that are reclassified from OCI to net income in both net incomeand OCI. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15,2011. The Company adopted the guidance on January 1, 2012. The adoption affected disclosures but did not impact theCompany’s results of operations or financial position.

ASC 350, Intangibles—Goodwill and Other

In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which gives entities the option of performing a qualitative assessment to determine whether it is necessary to perform the two-step goodwill impairment test. If, after assessing qualitative factors, a company determines that it is not more likely than not that the fair value of a reporting unit is less than itscarrying amount, then the company does not need to perform further testing. If it is more likely than not that the fair value of areporting unit is less than its carrying amount, then the company would have to perform the two step goodwill impairment test. Theoption is unconditional so it may be skipped in any reporting period and an entity may resume performing the qualitative assessmentin any subsequent period. The guidance is effective for annual and interim goodwill impairment tests performed for fiscal yearsbeginning on or after December 15, 2011. The Company adopted the guidance on January 1, 2012. The adoption did not impact theCompany’s results of operations or financial position.

• In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income, which requires an entity to report components of comprehensive income in either a single, continuous statement of comprehensive income or two separatebut consecutive statements. Under the two statement approach, the first statement would include components of net incomeand the second statement would include components of other comprehensive income (“OCI”).

• In December 2011, the FASB issued ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation ofReclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. This guidance defers the portion of ASU 2011-05 that requires an entity to present reclassification adjustments and theeffect of those reclassification adjustments on the face of the financial statements where net income is presented, bycomponent of net income, and on the face of the financial statements where OCI is presented, by component of OCI. Thedeferral is effective at the same time as ASU 2011-05, for fiscal years, and interim periods within those years, beginningafter December 15, 2011.

Note 2. Fair Value of Financial Instruments Fair Value Measurements ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the qualityof inputs used to measure fair value and enhances disclosure requirements for fair value measurements.

Fair Value Hierarchy The Company has categorized its financial instruments into a three level hierarchy which is based on the priority of the inputs to thevaluation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets orliabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall withindifferent levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair valuemeasurement of the instrument.

Assets and liabilities recorded at fair value on the Balance Sheets 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 thefull 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 valuemeasurement. They reflect management’s own assumptions about the assumptions a market participant would use in pricing theasset or liability.

The Company recognizes transfers between levels at the beginning of the quarter.

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis:

December 31, 2013

Level 1 Level 2 Level 3 Total

Assets

Fixed maturity available-for-sale (“AFS”) securities (a)

Corporate securities $ - $ 97,147 $ - $ 97,147 Asset-backed securities - 4,263 - 4,263 Commercial mortgage-backed securities - 21,848 - 21,848 Residential mortgage-backed securities - 4,780 - 4,780 Government and government agencies

United States 10,260 - - 10,260 Foreign 2,411 1,365 - 3,776

Total fixed maturity AFS securities (a) 12,671 129,403 - 142,074 Equity securities - banking securities (a) - 1,402 - 1,402 Cash equivalents (b) - 28,297 - 28,297 Separate Accounts assets (c) 551,306 - - 551,306

Total assets $ 563,977 $ 159,102 $ - $ 723,079

Liabilities

Future policy benefits (embedded derivatives only) (d) $ - $ - $ (4,121) $ (4,121) Derivative liabilities (e) - 27 - 27

Total liabilities $ - $ 27 $ (4,121) $ (4,094)

December 31, 2012


Assets

Fixed maturity AFS securities (a)

Corporate securities $ - $ 107,938 $ - $ 107,938 Asset-backed securities - 4,196 - 4,196 Commercial mortgage-backed securities - 21,942 - 21,942 Residential mortgage-backed securities - 5,511 - 5,511 Government and government agencies

United States 3,359 - - 3,359 Foreign 2,726 1,255 - 3,981

Total fixed maturity AFS securities (a) 6,085 140,842 - 146,927 Equity securities - banking securities (a) - 1,521 - 1,521 Cash equivalents (b) - 23,591 - 23,591 Separate Accounts assets (c) 526,437 - - 526,437

Total assets $ 532,522 $ 165,954 $ - $ 698,476

Liabilities

Future policy benefits (embedded derivatives only) (d) $ - $ - $ (7,778) $ (7,778)

Total liabilities $ - $ - $ (7,778) $ (7,778)

(a) Securities are classified as Level 1 if the fair value is determined by observable inputs that reflect quoted prices for identicalassets in active markets that the Company has the ability to access at the measurement date. Level 1 securities primarily includehighly liquid U.S. Treasury and U.S. government agency securities. Securities are classified as Level 2 if the fair value isdetermined by observable inputs, other than quoted prices included in Level 1, for the asset or prices for similar assets.Securities are classified as Level 3 if the valuations are derived from techniques in which one or more of the significant inputsare unobservable. Level 3 consists principally of fixed maturity securities whose fair value is estimated based on non-binding broker quotes.

(b) Cash equivalents are primarily valued at amortized cost, which approximates fair value. Operating cash is not included in theabovementioned table.

During 2013 and 2012, there were no transfers between Level 1 and 2, respectively.

The following table provides a summary of the change in fair value of the Company’s Level 3 assets at December 31, 2013 and 2012:

The change in Level 3 fixed maturity AFS securities at December 31, 2013 is due to the transfer from Level 3 to Level 2 of acommercial mortgage-backed security (“CMBS”), which was purchased during the first quarter of 2013. The transfer was due to theavailability of market observable data from an external source. There was also an asset-backed security (“ABS”) that transferred from a Level 3 to a Level 2 due to the availability of market observable data from an external source. The decrease in the Level 3 fixedmaturity AFS securities at December 31, 2012 was due to the increase in market activity and availability of market observable data(Level 2).

The Company’s Level 3 liabilities (assets) consist of provisions for GMWB and GMIB reinsurance. The fair value of these guaranteesis calculated as the present value of future expected payments to policyholders less the present value of assessed rider fees attributableto the guarantees. Given the complexity and long-term nature of these guarantees which are unlike instruments available in financialmarkets, their fair values are determined using stochastic techniques under a variety of market return scenarios. A variety of factorsare considered, including expected market rates of return, equity and interest rate volatility, credit spread, correlations of marketreturns, discount rates and actuarial assumptions. For GMWB, increases (decreases) in credit spread in isolation would result in alower (higher) fair value measurement and increases (decreases) in volatility in isolation would result in a higher (lower) fair valuemeasurement. Changes in the Company’s credit spread and volatility assumption have an inverse reaction for GMIB reinsurance, dueto this reserve being an asset.

(c) Separate Accounts assets are carried at the net asset value provided by the fund managers. (d) The Company issued contracts containing guaranteed minimum withdrawal benefit riders (“GMWB”) and obtained reinsurance

on guaranteed minimum income benefit riders (“GMIB reinsurance”). GMWB and GMIB reinsurance are treated as embedded derivatives and are required to be reported separately from the host variable annuity contract. The fair value of these guaranteesis calculated as the present value of future expected payments to policyholders less the present value of assessed rider feesattributable to the guarantees. Given the complexity and long-term nature of these guarantees, their fair values are determined using stochastic techniques under a variety of market return, discount rates and actuarial assumptions. Since many of theassumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in futurepolicy benefits has been reflected within Level 3 of the fair value hierarchy.

(e) Derivatives are classified as Level 1 if the fair value is determined by observable inputs that reflect quoted prices for identicalassets in active markets that the Company has the ability to access at the measurement date. Derivatives are classified as Level 2if the fair value is determined by observable inputs, other than quoted prices included in Level 1, for the identical asset or pricesfor similar assets. Derivatives are classified as Level 3 if the valuations are derived from techniques in which one or more of thesignificant inputs are unobservable. Level 2 derivatives include total return swaps for which the Company utilized readilyaccessible quoted index levels and broker quotes. Total return swaps are valued based on the change in the underlying equityindex as of the last reset date.

December 31,

Fixed maturity AFS securities 2013 2012

Balance at beginning of period (a) $ - $ 1,098

Purchases 1,025 - Transfers into Level 3 735 - Transfers out of Level 3 (1,760) (1,098)

Balance at end of period (a) $ - $ -

(a) Recorded as a component of fixed maturity AFS securities in the Balance Sheets.

The expected returns are based on risk-free rates, such as the current London Inter-Bank Offered Rate (“LIBOR”) forward curve. The credit spread, which is the most significant unobservable input, is set by using the credit default swap (“CDS”) spreads of a reference portfolio of life insurance companies, adjusted to reflect the subordination of senior debt holders at the holding company level to theposition of policyholders at the operating company level (who have priority in payments to other creditors). The credit spread was 45basis points (“bps”) and 80 bps at December 31, 2013 and 2012, respectively.

For equity volatility, the Company uses a term structure assumption with market-based implied volatility inputs for the first five years and a long-term forward rate assumption of 25% thereafter. The volume of observable option trading from which volatilities arederived generally declines as the contracts’ term increases, therefore, the volatility curve grades from implied volatilities for fiveyears to the ultimate rate. The resulting volatility assumption in year 20 for Standard & Poor’s 500 Composite Stock Price Index (“S&P”) (expressed as a spot rate) was 23.9% at December 31, 2013 and 24.4% at December 31, 2012. Correlations of market returnsacross underlying indices are based on historical market returns and their inter-relationships over a number of years preceding the valuation date. Assumptions regarding policyholder behavior, such as lapses, included in the models are derived in the same way asthe assumptions used to measure insurance liabilities. These assumptions are reviewed at each valuation date and updated based onhistorical experience and observable market data as required.

The following table provides a summary of the changes in fair value of the Company’s Level 3 liabilities (assets) at December 31, 2013 and 2012:

During 2013, the change in GMWB and GMIB reinsurance reserves was primarily driven by increased interest rates, updatedpolicyholder behavior assumptions and favorable equity market performance. During 2012, the change in the GMWB and GMIBreinsurance reserves was primarily driven by updated policyholder behavior assumptions, decrease in risk neutral rates, change involatility and favorable equity market performance.

December 31, 2013 December 31, 2012

GMWB

GMIBReinsurance GMWB

GMIBReinsurance

Balance at beginning of period (b) $ 1,150 $ (8,928) $ 2,776 $ (9,132) Changes in interest rates (a) (757) 2,485 (3) (733) Changes in equity markets (a) (579) 2,567 (782) 883 Other (a) 94 (153) (841) 54

Balance at end of period (b) $ (92) $ (4,029) $ 1,150 $ (8,928)

(a) Recorded as a component of policy benefits in the Statements of Income. (b) Recorded as a component of future policy benefits in the Balance Sheets.

The following table provides a summary of the quantitative inputs and assumptions of the Company’s Level 3 liabilities at December 31, 2013 and 2012:

The following table provides the estimated fair value of the Company’s assets not carried at fair value on the Balance Sheets at December 31, 2013 and 2012:

Description

December 31,2013

Estimated Fair Value Valuation Techniques Unobservable Inputs

Range(Weighted Average)

Liabilities

Future policy benefits (embedded derivatives) - GMWB $ (92) Discounted cash flow Own credit risk 45 bps

Long-term volatility 25%Future policy benefits (embedded

derivatives) - GMIB Reinsurance (4,029) Discounted cash flow Own credit risk 45 bps Long-term volatility 25%

Total liabilities $ (4,121)

Description

December 31,2012

Estimated Fair Value Valuation Techniques Unobservable Inputs

Range(Weighted Average)

Liabilities Future policy benefits (embedded

derivatives) - GMWB $ 1,150 Discounted cash flow Own credit risk 80 bps Long-term volatility 25%

Future policy benefits (embedded derivatives) - GMIB Reinsurance (8,928) Discounted cash flow Own credit risk 80 bps

Long-term volatility 25%

Total liabilities $ (7,778)

December 31, 2013


Assets Policy loans (a) $ - $ 49,662 $ - $ 49,662

Total assets $ - $ 49,662 $ - $ 49,662

December 31, 2012 Level 1 Level 2 Level 3 Total

Assets

Policy loans (a) $ - $ 53,132 $ - $ 53,132

Total assets $ - $ 53,132 $ - $ 53,132

(a) Policy loans are stated at unpaid principal balance. Fair value is estimated as equal to the book value of the loan.

Note 3. Investments Fixed Maturity and Equity Securities The amortized cost/cost and estimated fair value of investments in fixed maturity and equity securities at December 31, 2013 and2012 were:

Excluding investments in U.S. government and government agencies, the Company is not exposed to any significant concentration ofcredit risk in its fixed maturity securities portfolio.

December 31, 2013 Gross Unrealized Estimated

Amortized Cost/Cost Gains

Losses/ OTTI (1)

FairValue

Fixed maturity AFS securities

Corporate securities $ 90,579 $ 7,043 $ (475) $ 97,147 Asset-backed securities 4,254 24 (15) 4,263 Commercial mortgage-backed securities 20,457 1,620 (229) 21,848 Residential mortgage-backed securities 4,545 235 - 4,780 Government and government agencies

United States 10,764 132 (636) 10,260 Foreign 3,584 279 (87) 3,776

Total fixed maturity AFS securities $ 134,183 $ 9,333 $ (1,442) $ 142,074

Equity securities - banking securities $ 1,373 $ 32 $ (3) $ 1,402

Total equity securities $ 1,373 $ 32 $ (3) $ 1,402

December 31, 2012

Gross Unrealized Estimated

Amortized Cost/Cost Gains

Losses/ OTTI (1)

FairValue


Corporate securities $ 96,052 $ 11,924 $ (37) $ 107,939 Asset-backed securities 4,166 33 (3) 4,196 Commercial mortgage-backed securities 19,175 2,767 - 21,942 Residential mortgage-backed securities 5,143 379 (11) 5,511 Government and government agencies

United States 2,957 401 - 3,358 Foreign 3,172 809 - 3,981

Total fixed maturity AFS securities $ 130,665 $ 16,313 $ (51) $ 146,927

Equity securities - banking securities $ 1,372 $ 153 $ (4) $ 1,521

Total equity securities $ 1,372 $ 153 $ (4) $ 1,521

(1) Subsequent unrealized gains (losses ) on other-than-temporary (“OTTI”) securities are included in OCI-OTTI.

The amortized cost and estimated fair value of fixed maturity AFS securities by investment grade at December 31, 2013 and 2012were:

At December 31, 2013 and 2012, the estimated fair value of fixed maturity securities rated BBB- were $3,888 and $2,375, respectively, which is the lowest investment grade rating given by S&P. Below investment grade securities are speculative and aresubject to significantly greater risks related to the creditworthiness of the issuers and the liquidity of the market for such securities.The Company closely monitors such investments.

The amortized cost and estimated fair value of fixed maturity AFS securities at December 31, 2013 and 2012 by contractualmaturities were:

In the preceding table, fixed maturity securities not due at a single maturity date have been included in the year of final maturity.Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with orwithout call or prepayment penalties.

The company did not hold any trading securities during the year ended 2013. During 2012 and 2011, there was $6 and $29,respectively, of investment income on fixed maturity trading securities recorded in net investment income in the Statements ofIncome. During 2012 and 2011 there was $59 and ($35), respectively, of income (loss) recognized from the change in the fair valueon fixed maturity trading securities recorded in net investment income in the Statements of Income. The Company recognized gains(losses) of ($53) and $25, respectively, during 2012 and 2011 on the conversion of fixed maturity trading securities to preferred stock.

The Company had investment securities with an estimated fair value of $949 and $993 that were deposited with insurance regulatoryauthorities at December 31, 2013 and 2012, respectively.


Amortized Cost

Estimated Fair

Value

Amortized Cost

Estimated Fair

Value

Investment grade $ 126,116 $ 133,887 $ 124,715 $ 140,554 Below investment grade 8,067 8,187 5,950 6,373

Total fixed maturity AFS securities $ 134,183 $ 142,074 $ 130,665 $ 146,927


Amortized Cost

Estimated Fair

Value

Amortized Cost

Estimated Fair

Value


Due in one year or less $ 3,013 $ 3,083 $ 4,801 $ 4,894 Due after one year through five years 47,494 51,727 36,530 39,966 Due after five years through ten years 42,779 43,991 51,164 58,570 Due after ten years 11,641 12,382 9,686 11,849

104,927 111,183 102,181 115,279 Mortgage-backed securities and other asset-backed securities 29,256 30,891 28,484 31,648

Total fixed maturity AFS securities $ 134,183 $ 142,074 $ 130,665 $ 146,927

Unrealized Gains (Losses) on Fixed Maturity and Equity Securities The Company’s investments in fixed maturity and equity securities classified as AFS are carried at estimated fair value withunrealized gains and losses included in stockholder’s equity as a component of accumulated other comprehensive income (loss), netof taxes.

The estimated fair value and gross unrealized losses and OTTI of fixed maturity and equity AFS securities aggregated by length oftime that individual securities have been in a continuous unrealized loss position at December 31, 2013 and 2012 were as follows:

December 31, 2013

EstimatedFair Value

Amortized Cost/Cost

GrossUnrealizedLosses and

OTTI (1)

Less than or equal to six months


Corporate securities $ 6,192 $ 6,384 $ (192) Asset-backed securities 1,449 1,456 (7) Commercial mortgage-backed securities 821 823 (2) Government and government agencies - United States 1,000 1,028 (28) Equity securities - banking securities 77 80 (3)

Total fixed maturity and equity securities 9,539 9,771 (232)

Greater than six months but less than or equal to one year


Corporate securities 3,921 4,202 (281) Asset-backed securities 955 962 (7) Commercial mortgage-backed securities 2,788 3,015 (227) Government and government agencies

United States 7,214 7,822 (608) Foreign 800 887 (87)

Total fixed maturity and equity securities 15,678 16,888 (1,210)

Greater than one year


Corporate securities 246 248 (2) Asset-backed securities 404 405 (1) Residential mortgage-backed securities 6 6 -

Total fixed maturity and equity securities 656 659 (3)

Total fixed maturity and equity securities $ 25,873 $ 27,318 $ (1,445)

(1) Subsequent unrealized gains (losses) on OTTI securities are included in OCI-OTTI.

The total number of securities in an unrealized loss position was 39 and 13 at December 31, 2013 and 2012, respectively.

At December 31, 2013 and 2012 there were no securities where the fair value had declined below amortized cost by greater than 20%.

Unrealized gains (losses) incurred during the years ended December 31, 2013 and 2012 were primarily due to price fluctuationsresulting from changes in interest rates and credit spreads. If the Company has the intent to sell or it is more likely than not that theCompany will be required to sell these securities prior to the anticipated recovery of the amortized cost, securities are written down tofair value. If cash flow models indicate a credit event will impact future cash flows, the security is impaired to discounted cash flows.As the remaining unrealized losses in the portfolio relate to holdings where the Company expects to receive full principal and interest,the Company does not consider the underlying investments to be impaired.

December 31, 2012

Estimated Fair Value

Amortized Cost/Cost

GrossUnrealizedLosses and

OTTI (1)

Less than or equal to six months


Corporate securities $ 573 $ 574 $ (1) Asset-backed securities 1,855 1,857 (2)


Greater than six months but less than or equal to one year Fixed maturity AFS securities

Corporate securities 240 248 (8) Residential mortgage-backed securities 22 24 (2)

Total fixed maturity and equity securities 262 272 (10)

Greater than one year

Fixed maturity AFS securities Corporate securities 760 788 (28) Asset-backed securities 752 753 (1) Residential mortgage-backed securities 441 450 (9)

Equity securities - banking securities 76 80 (4)


Total fixed maturity and equity securities $ 4,719 $ 4,774 $ (55)

The components of net unrealized gains (losses) and OTTI included in accumulated other comprehensive income, net of taxes, atDecember 31, 2013 and 2012 were as follows:

The Company records certain adjustments to policyholder account balances in conjunction with the unrealized holding gains or losseson investments classified as available-for-sale. The Company adjusts a portion of these liabilities as if the unrealized holding gains orlosses had actually been realized, with corresponding credits or charges reported in accumulated other comprehensive income (loss),net of taxes.

Policy Loans Policy loans on insurance contracts are stated at unpaid principal balances. The Company estimates the fair value of policy loans asequal to the book value of the loans. The estimated fair value of the policy loans at December 31, 2013 and 2012 was $49,662 and$53,132, respectively. Policy loans are fully collateralized by the account value of the associated insurance contracts, and the spreadbetween the policy loan interest rate and the interest rate credited to the account value held as collateral is fixed.

Derivative Instruments The Company uses derivatives to manage the capital market risk associated with the GMWB. S&P futures contracts, are used tohedge the equity risk associated with these types of variable guaranteed products, in particular the claim and/or revenue risks of theliability portfolio. Net settlements on the futures contracts occur daily. At December 31, 2013 and 2012, the Company had shortfutures contracts with a notional value of $4,603 and $3,550, respectively. Realized losses on settlement of these futures were($1,112) and ($917) for the periods ended December 31, 2013 and 2012, respectively. These losses have been recorded in netderivative losses in the Statements of Income.

During 2013, the Company entered into total return swaps which are based on the S&P. The Company uses total return swaps tohedge equity risk. At December 31, 2013, the Company had total return swaps with a notional value of $1,081 and a net fair value of($27). The Company recognized ($27) of losses from the change in fair value, which have been recorded in net derivative losses inthe Statements of Income.

In addition, in order to trade futures, the Company is required to post collateral to an exchange (sometimes referred to as margin). Thefair value of collateral posted in relation to the futures margin was $329 and $349 as of December 31, 2013 and 2012, respectively.

Offsetting of Financial Instruments The Company has derivative instruments that are subject to master netting agreements. These agreements include provisions to setoffpositions with the same counterparties in the event of default by one of the parties. As of December 31, 2013, the Company only had derivatives in a liability position. Therefore, there are no derivatives subject to offsetting. As of December 31, 2012, the Company didnot have any open derivative positions.

December 31,

2013 2012

Assets

Fixed maturity securities $ 7,891 $ 16,262 Equity securities 29 149 Value of business acquired (373) (632)

7,547 15,779

Liabilities

Policyholder account balances - (640) Income taxes - deferred (2,641) (5,374)

(2,641) (6,014)

Stockholder’s equity

Accumulated other comprehensive income, net of taxes $ 4,906 $ 9,765

Net Investment Income Net investment income by source for the years ended December 31 was as follows:

Realized Investment Gains (Losses) The Company considers fair value at the date of sale to be equal to proceeds received. Proceeds and gross realized investment gains(losses) from the sale of AFS securities for the years ended December 31 were as follows:

Net realized investment gains (losses) for the years ended December 31 were as follows:

OTTI If management determines that a decline in the value of an AFS equity security is other-than-temporary, the cost basis is adjusted to estimated fair value and the decline in value is recorded as a net realized investment loss. For debt securities, the manner in which anOTTI is recorded depends on whether management intends to sell a security or it is more likely than not that it will be required to sella security in an unrealized loss position before its anticipated recovery. If management intends to sell or more likely than not will berequired to sell the debt security before recovery, the OTTI is recognized in earnings for the difference between amortized cost andfair value. If these criteria are not met, the OTTI is bifurcated into two pieces: a credit loss is recognized in earnings at an amountequal to the difference between the amortized cost of the debt security and the present value of the security’s anticipated cash flows, and a non credit loss is recognized in OCI for any difference between the fair value and the net present value of the debt security atthe impairment measurement date.

2013 2012 2011 Fixed maturity AFS securities $ 6,768 $ 6,742 $ 7,314 Fixed maturity trading securities - 12 19 Equity securities 84 81 58 Policy loans 2,535 2,575 2,792 Cash and cash equivalents 24 39 51 Other 2 7 5

Gross investment income 9,413 9,456 10,239 Less: investment expenses (213) (199) (206)

Net investment income $ 9,200 $ 9,257 $ 10,033

2013 2012 2011

Proceeds $ 14,367 $ 5,702 $ 49,697 Gross realized investment gains 903 213 1,151 Gross realized investment losses (168) (275) (14)

Proceeds on AFS securities sold at a realized loss 3,963 3,205 21,630

2013 2012 2011

Fixed maturity AFS securities $ 735 $ (68) $ 1,116 Associated amortization of VOBA 6 2 (23)

Net realized investment gains (losses) $ 741 $ (66) $ 1,093

The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Company as of the datesindicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts for the yearsended December 31:

The components of OTTI reflected in the Statements of Income for the years ended December 31 were as follows:

During 2013, the Company did not incur any impairment losses. During 2012 and 2011 impairment losses recognized in income werethe result of the Company impairing a previously OCI impaired holding of a 2005 vintage residential mortgage-backed security (“RMBS”) due to adverse changes in cash flows. Note 4. VOBA, DAC, and DSI VOBA VOBA reflects the estimated fair value of in force contracts acquired and represents the portion of the purchase price that is allocatedto the value of the right to receive future cash flows from the life insurance and annuity contracts in force at the acquisition date.VOBA is based on actuarially determined projections, for each block of business, of future policy and contract charges, premiums,mortality, Separate Account performance, surrenders, operating expenses, investment returns and other factors. Actual experience onthe purchased business may vary from these projections. If estimated gross profits or premiums differ from expectations, theamortization of VOBA is adjusted to reflect actual experience. The long-term growth rate assumption for the amortization of VOBA, DAC and DSI was 8% at December 31, 2013 and 9% at December 31, 2012 and 2011.

The change in the carrying amount of VOBA for the years ended December 31 was as follows:

During 2013 the decrease in VOBA was primarily driven by regular amortization due to positive gross profits while updatedpolicyholder behavior assumptions resulted in favorable unlocking as compared to 2012.

December 31,

2013 2012

Balance at beginning of period $ 31 $ 36 Additional credit loss impairments recognized in the current period on securities

previously impaired through other comprehensive income - 6 Accretion of credit loss impairments previously recognized (23) (11)

Balance at end of period $ 8 $ 31

2013 2012 2011

Gross OTTI losses on securities $ - $ 6 $ 84 Net OTTI loss recognized in OCI - - 62

Net OTTI losses recognized in income $ - $ 6 $ 22

2013 2012

Balance at beginning of period $ 25,207 $ 27,563 Amortization expense (1,607) (2,440) Unlocking 770 181 Adjustment related to realized gains on investments and OTTI 6 2 Adjustment related to unrealized gains and OTTI on investments 258 (99)

Balance at end of period $ 24,634 $ 25,207

The estimated future amortization of VOBA from 2014 to 2018 is as follows:

DAC and DSI The change in the carrying amount of DAC and DSI for the years ended December 31 was as follows:

The increase in DAC and DSI in 2013 was primarily driven by positive gross profits resulting in increased accretion expense whencompared to 2012. Note 5. Variable Contracts Containing Guaranteed Benefits Variable Annuity Contracts Containing Guaranteed Benefits Prior to 2009, the Company issued variable annuity contracts in which the Company may have contractually guaranteed to thecontract owner a guaranteed minimum death benefit (“GMDB”) and/or an optional guaranteed living benefit provision. The livingbenefit provisions offered by the Company included a guaranteed minimum income benefit (“GMIB”) and a GMWB. Information regarding the general characteristics of each guaranteed benefit type is provided below:

2014 $ 2,690 2015 2,145 2016 2,047 2017 1,939 2018 1,834

DAC DSI

Balance, January 1, 2012 $ 466 $ 170 Amortization expense (338) (123) Unlocking 142 51

Balance, December 31, 2012 270 98 Accretion expense 87 31 Unlocking (3) (2)

Balance, December 31, 2013 $ 354 $ 127

• In general, contracts containing GMDB provisions provide a death benefit equal to the greater of the GMDB or the contractvalue. Depending on the type of contract, the GMDB may equal: i) contract deposits accumulated at a specified interest rate, ii)the contract value on specified contract anniversaries, iii) return of contract deposits, or iv) some combination of these benefits.Each benefit type is reduced for contract withdrawals.

• In general, contracts containing GMIB provisions provide the option to receive a guaranteed future income stream upon

annuitization. There is a waiting period of ten years from contract issue that must elapse before the GMIB provision can beexercised.

• Contracts containing GMWB provisions provide the contract owner the ability to withdraw minimum annual payments

regardless of the impact of market performance on the contract owner’s account value. In general, withdrawal percentages are based on the contract owner’s age at the time of the first withdrawal.

The Company had the following variable annuity contracts containing guaranteed benefits at December 31:

The Company records liabilities for contracts containing GMDB and GMIB as a component of future policy benefits in the BalanceSheets and changes in the liabilities are included as a component of policy benefits in the Statements of Income. The GMDB andGMIB liabilities are determined by projecting future expected guaranteed benefits under multiple scenarios for returns on SeparateAccounts assets. The Company uses estimates for mortality and policyholder behavior assumptions based on actual and projectedexperience for each contract type. These estimates are consistent with the estimates used in the calculation of DAC. The Companyregularly evaluates the estimates used and adjusts the GMDB and/or GMIB liability balances with a related charge or credit toearnings (“unlocking”), if actual experience or evidence suggests that earlier assumptions should be revised.

The changes in the variable annuity GMDB and GMIB liabilities for the years ended December 31 were as follows:

The change in reserve was primarily driven by updated policyholder assumptions during 2013 and a decrease in the long-term equity growth rate assumption along with Separate Account returns exceeding expectations when compared to 2012.

GMDB GMIB GMWB

2013

Net amount at risk (a) $ 14,563 $ 422 $ 2,909 Average attained age of contract owners 72 67 77 Weighted average period remaining until expected annuitization n/a 1.3 yrs n/a

2012

Net amount at risk (a) $ 27,425 $ 588 $ 4,037 Average attained age of contract owners 71 66 77 Weighted average period remaining until expected annuitization n/a 2.2 yrs n/a

(a) Net amount at risk for GMDB is defined as the current GMDB in excess of the contract owners’ account balance at the BalanceSheet date. Net amount at risk for GMIB is defined as the present value of the minimum guaranteed annuity payments available tothe contract owner in excess of the contract owners’ account balance at the Balance Sheet date. Net amount at risk for GMWB isdefined as the difference between the maximum amount payable under the guarantee and the contract owners’ account balance at the Balance Sheet date.

GMDB GMIB

Balance, January 1, 2012 $ 876 $ 4,779 Guaranteed benefits incurred 1,667 906 Guaranteed benefits paid (265) - Unlocking (826) (2,015)

Balance, December 31, 2012 1,452 3,670 Guaranteed benefits incurred 1,506 748 Guaranteed benefits paid (230) - Unlocking (1,487) (937)

Balance, December 31, 2013 $ 1,241 $ 3,481

At December 31, contract owners’ account balances by mutual fund class by guaranteed benefit provisions were comprised asfollows:

Variable Life Contracts Containing Guaranteed Benefits The Company has issued variable life contracts in which the Company contractually guarantees to the contract owner a GMDB. Ingeneral, contracts containing GMDB provisions provide a death benefit equal to the amount specified in the contract regardless of thelevel of the contract’s account value.

At December 31, contract owners’ account balances by mutual fund class for contracts containing GMDB provisions were distributedas follows:

Note 6. Income Taxes The effective tax rate was 20%, 28%, and 20% for the years ended December 31, 2013, 2012, and 2011, respectively. Differencesbetween the effective rate and the U.S. statutory rate of 35% principally were the result of Separate Accounts dividends-received deduction (“DRD”), and tax return adjustments.

The Company uses the asset and liability method in providing income taxes on all transactions that have been recognized in thefinancial statements. The asset and liability method requires that deferred taxes be adjusted to reflect the tax rates at which futuretaxable amounts will be settled or realized. The Company provides for federal income taxes based on amounts it believes it willultimately owe. Inherent in the provision for federal income taxes are estimates regarding the realization of certain tax deductions andcredits.

Specific estimates include the realization of dividend-received deductions (“DRD”) and foreign tax credits (“FTC”). A portion of the Company’s investment income related to Separate Accounts business qualifies for the DRD and FTC. Information necessary tocalculate these tax adjustments is typically not available until the following year. However, within the current year’s provision, management makes estimates regarding the future tax deductibility of these items. These estimates are primarily based on recenthistoric experience.

Equity Bond Balanced

Money Market Total

2013

GMDB only $ 136,823 $ 45,643 $ 36,375 $ 11,627 $ 230,468 GMDB and GMIB 71,632 19,906 21,532 2,235 115,305 GMDB and GMWB 8,794 2,979 3,685 11 15,469 GMWB only 8,308 2,701 3,011 75 14,095 GMIB only 6,061 915 1,171 3 8,150 No guaranteed benefit 1,803 894 1,341 136 4,174

Total $ 233,421 $ 73,038 $ 67,115 $ 14,087 $ 387,661

2012

GMDB only $ 119,918 $ 51,462 $ 35,361 $ 8,985 $ 215,726 GMDB and GMIB 66,079 21,424 24,493 2,619 114,615 GMDB and GMWB 8,118 2,384 4,182 28 14,712 GMWB only 8,000 2,232 3,787 70 14,089 GMIB only 4,914 649 1,301 53 6,917 No guaranteed benefit 907 881 1,784 130 3,702

Total $ 207,936 $ 79,032 $ 70,908 $ 11,885 $ 369,761

2013 2012

Balanced $ 79,786 $ 75,102 Equity 53,789 45,163 Bond 17,365 21,694 Money Market 12,705 14,717

Total $ 163,645 $ 156,676

The following is a reconciliation of the provision for income taxes based on income (loss) before federal income taxes, computedusing the federal statutory rate versus the reported provision for income taxes for the years ended December 31.

The Company provides for deferred income taxes resulting from temporary differences that arise from recording certain transactionsin different years for income tax reporting purposes than for financial reporting purposes.

Deferred tax assets and liabilities at December 31 were as follows:

The provision for income tax expense (benefit) consists of the following for the years ended:

2013 2012 2011 Provisions for income taxes computed at Federal statutory rate

(35%) $ 2,494 $ 3,507 $ 2,712 Increase (decrease) in income taxes resulting from:

Dividend received deduction (770) (630) (840) Tax credits (34) (62) (68) Tax goodwill amortization (79) (82) - Provision to return adjustment (231) 88 (138) Unrecognized tax benefits 25 11 (174) Other - - 22

Federal income tax provision $ 1,405 $ 2,832 $ 1,514

Effective tax rate 20% 28% 20%

December 31,

2013 2012

Deferred tax assets

DAC $ 4,451 $ 5,465 Tax VOBA 461 - Policyholder account balances 10,675 - Tax credits 2,009 936 Net operating and capital loss carryforward - 3,212 Intangible assets 2,306 2,585 Liability for guaranty fund assessments 23 70 Other 225 1,424

Total deferred tax assets 20,150 13,692 Deferred tax liabilities

VOBA 8,622 8,307 DAC 168 - Investment adjustments 15,216 8,841 Policyholder account balances - 4,520

Total deferred tax liabilities 24,006 21,668

Total net deferred tax liability $ (3,856) $ (7,976)

2013 2012 2011

Current federal income tax expense (benefit) $ 2,792 $ 183 $ (150) Deferred federal income tax expense (benefit) (1,387) 2,649 1,664

Total income tax expense $ 1,405 $ 2,832 $ 1,514

The provision for income tax receivable (payable) consists of the following for the periods ending December 31, 2013 and 2012:

At December 31, 2013 and 2012, the Company did not have a tax valuation allowance for deferred tax assets. A tax valuationallowance was not deemed necessary as management determined that it is more likely than not that the deferred tax assets will berealized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that all or someof the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on generation of future taxableincome during the periods in which those temporary differences are deductible. Management considers the scheduled reversal ofdeferred tax liabilities, projected taxable income, and tax-planning strategies in making the assessment.

The Company has analyzed all material tax positions under the guidance of ASC 740, Income Taxes, related to the accounting for uncertainty in income tax, and determined there were tax benefits of $265 (gross $757) and $240 (gross $686) that should not berecognized at December 31, 2013 and 2012, respectively, which primarily relates to uncertainty regarding the sustainability of certaindeductions taken on the 2012, 2011, 2010, 2009, and 2008 U.S. Federal income tax returns. To the extent these unrecognized taxbenefits are ultimately recognized, they will not impact the effective tax rate in a future period. It is not anticipated that the totalamounts of unrecognized tax benefits will significantly increase within twelve months of the reporting date.

The components of the change in the unrecognized tax benefits were as follows:

At December 31, 2013 there was no operating loss carryforward for federal income tax purposes. At December 31, 2012, theCompany had an operating loss carryforward for federal income tax purposes of $8,490 (net of the ASC 740 reduction of $686), witha carryforward period of fifteen years that expire at various dates up to 2026. The Company has a foreign tax credit carryforward atDecember 31, 2013 and 2012 of $523 and $565, respectively, with a carryforward period of ten years that will expire at various datesup to 2023. Also, the Company has an Alternative Minimum Tax credit carryforward for federal income tax purposes of $1,487 and$371 at December 31, 2013 and 2012 with an indefinite carryforward period.

The Company classifies interest and penalties related to income taxes as interest expense and penalty expense, respectively. Theseamounts are included in insurance expenses and taxes on the Statements of Income. The Company has not incurred or recognized anypenalties or interest expense in its financial statements at December 31, 2013, 2012 and 2011, respectively.

Effective January 1, 2013 for federal income tax purposes, the Company joined in a consolidated income tax return filing withAUSA, and indirect parent company, Transamerica Corporation, and other affiliated companies. The method of allocation betweenthe companies is subject to a written tax allocation agreement. Under the terms of the tax allocation agreement, allocations are basedon separate income tax return calculations. The Company is entitled to recoup federal income taxes paid in the event the future lossesand credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in the year generated. The Company is also entitled to recoup federal income taxes paid in the event the losses and creditsreduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in any carryback or carryforward year when so applied. Separate Company income taxes relating to net operating losses and tax credits thatare not settled under the tax sharing agreement are settled through capital contributions or return of capital to AUSA. There were nocapital contributions or return of capital in 2013 or 2012. Intercompany income tax balances are settled within thirty days of paymentto or filing with the Internal Revenue Service.

The Company filed a separate federal income tax return for the years 2008 through 2012, but no examination by the Internal RevenueService has commenced. A tax return has not yet been filed for 2013.

December 31,

2013 2012

Current federal income tax receivable (payable) $ (1,501) $ 2,830 Deferred federal income tax payable (3,856) (7,976)

Total income tax payable $ (5,357) $ (5,146)

December 31,

2013 2012

Balance at beginning of period $ 240 $ 229 Additions for tax positions of prior years 25 11

Balance at end of period $ 265 $ 240

Note 7. Accumulated Other Comprehensive Income The following table presents the change in accumulated other comprehensive income by component for the period endedDecember 31, 2013:

The following table presents the reclassifications out of accumulated other comprehensive income for the period ended December 31,2013:

Note 8. Stockholder’s Equity and Statutory Accounting Principles The Company’s statutory financial statements are presented on the basis of accounting practices prescribed or permitted by the NewYork Insurance Department. The State of New York has adopted the National Association of Insurance Commissioners (“NAIC”) statutory accounting principles as a component of prescribed or permitted practices by the State of New York.

The Company’s statutory net income (loss) for the years ended December 31, 2013, 2012 and 2011 was $18,895, $18,842 and($13,012), respectively.

Statutory capital and surplus at December 31, 2013 and 2012 was $92,450 and $77,462, respectively. At December 31, 2013 and2012 there was $9,245 and $7,746, respectively of stockholder’s equity available for dividend distribution that would not requireapproval by the New York Insurance Department. During 2013 and 2012, the Company did not pay any dividends to AUSA orreceive any capital contribution from AUSA.

The NAIC utilizes the Risk Based Capital (“RBC”) adequacy monitoring system. The RBC calculates the amount of adjusted capitalthat a life insurance company should hold based upon that company’s risk profile. At December 31, 2013 and 2012, based on theRBC formula, the Company’s total adjusted capital level was well in excess of the minimum amount of capital required to avoidregulatory action.

A financial exam of the Company has been performed by the state, for the period January 1, 2005 through December 31, 2009, andwas completed on April 21, 2011. The Report on Examination – Financial Condition, as of December 31, 2009, was adopted by theNew York Insurance Department and made an official record on June 24, 2011. There were no changes to the Company’s financial statements as a result of the exam.

Unrealized Holding Gains (Losses) on

AFS Securities (a)

Beginning balance $ 9,765

Other comprehensive loss before reclassifications (4,928) Amounts reclassified from accumulated other comprehensive income 69

Net current period other comprehensive loss (4,859)

Ending balance $ 4,906

(a) All amounts are net of taxes.

Amount Reclassified from

Accumulated Other Comprehensive Income Components

Accumulated OtherComprehensive Income

Affected Line Item in the StatementWhere Net Income is Presented

Unrealized holding gains (losses) on AFS securities

Available-for-sale securities $ (107) Net realized investment gains (losses)

(107) Total before tax (38) Tax benefit

$ (69) Net of tax

Note 9. Reinsurance In the normal course of business, the Company seeks to limit its exposure to loss on any single insured life and to recover a portion ofbenefits paid by ceding mortality risk to other insurance enterprises or reinsurers under indemnity reinsurance agreements, primarilyquota share coverage and coinsurance agreements. The maximum amount of mortality risk retained by the Company is approximately$1,000 on single and joint life policies.

Indemnity reinsurance agreements do not relieve the Company from its obligations to contract owners. Failure of reinsurers to honortheir obligations could result in losses to the Company. The Company regularly evaluates the financial condition of its reinsurers so asto minimize its exposure to significant losses from reinsurer insolvencies. At December 31, 2013 and 2012, reinsurance payableswere $26 and $27, respectively. The Company did not have a reinsurance reserve at December 31, 2013 and 2012.

At December 31, 2013, the Company had the following life insurance inforce:

In addition, the Company seeks to limit its exposure to guaranteed benefit features contained in certain variable annuity contracts.Specifically, the Company reinsures certain GMIB and GMDB provisions to the extent reinsurance capacity is available in themarketplace. At December 31, 2013, 50% and 7% of the account value for variable annuity contracts containing GMIB and GMDBprovisions, respectively, were reinsured. At December 31, 2012, 53% and 7% of the account value for variable annuity contractscontaining GMIB and GMDB provisions, respectively, were reinsured. Note 10. Related Party Transactions At December 31, 2013, the Company had the following related party agreements in effect:

The Company is party to a common cost allocation service agreement between AUSA companies in which various affiliatedcompanies may perform specified administrative functions in connection with the operation of the Company, in consideration ofreimbursement of actual costs of services rendered. During 2013, 2012 and 2011, the Company incurred $649, $689 and $562,respectively, in expenses under this agreement. Charges attributable to this agreement are included in insurance expenses and taxes,net of amounts capitalized.

AEGON USA Investment Management, LLC acts as a discretionary investment manager under an investment managementagreement with the Company. During 2013, 2012 and 2011, the Company incurred $164, $143 and $205, respectively, in expensesunder this agreement. Charges attributable to this agreement are included in net investment income.

Transamerica Capital, Inc. provides underwriting and distribution services for the Company under an underwriting agreement. During2013, 2012 and 2011, the Company incurred $2,128, $2,165 and $2,506, respectively, in expenses under this agreement. Chargesattributable to this agreement are included in insurance expenses and taxes, net of amounts capitalized.

Transamerica Asset Management, Inc. acts as the investment advisor for certain related party funds in the Company’s Separate Accounts under multiple service agreements. During 2013, 2012 and 2011, the Company incurred $17, $16 and $17, respectively, inexpenses under this agreement. Charges attributable to this agreement are included in insurance expenses and taxes, net of amountscapitalized.

The Company has a participation agreement with Transamerica Series Trust to offer certain funds in the Company’s Separate Accounts. Transamerica Capital, Inc. acts as the distributor for said related party funds. The Company has entered into a distributionand shareholder services agreement for certain of the said funds. During 2013, 2012 and 2011, the Company received $83, $73 and$79 in revenue under these agreements, respectively. Revenue attributable to this agreement is included in policy charge revenue.

Grossamount

Ceded toother

companies

Assumedfrom othercompanies Net amount

Percentageof amountassumed to

net

Life insurance inforce $ 347,234 $ 1,190 $ 1,341 $ 347,385 0.39%

The Company has a service agreement with Western Reserve Life Assurance Co. of Ohio (“WRL”) whereby WRL will perform specified administrative functions in connection with the operation of the Company except to the extent that the services areperformed for the Company by another party. During 2013, 2012 and 2011, the Company incurred $757, $681 and $698, respectively,in expenses under this agreement. Charges attributable to this agreement are included in insurance expenses and taxes, net of amountscapitalized.

While management believes that the service agreements referenced above are calculated on a reasonable basis, they may notnecessarily be indicative of the costs that would have been incurred with an unrelated third party. Affiliated agreements generallycontain reciprocal indemnity provisions pertaining to each party’s representations and contractual obligations thereunder. Note 11. Commitments and Contingencies State insurance laws generally require that all life insurers who are licensed to transact business within a state become members of thestate’s life insurance guaranty association. These associations have been established for the protection of contract owners from loss(within specified limits) as a result of the insolvency of an insurer. At the time insolvency occurs, the guaranty association assessesthe remaining members of the association an amount sufficient to satisfy the insolvent insurer’s contract owner obligations (within specified limits). The Company has utilized public information to estimate what future assessments it will incur as a result ofinsolvencies. At December 31, 2013 and 2012, the Company’s estimated liability for future guaranty fund assessments was $270 and$285, respectively. In addition, the Company has a receivable for future premium tax deductions of $167 and $89 at December 31,2013 and 2012, respectively. If future insolvencies occur, the Company’s estimated liability may not be sufficient to fund these insolvencies and the estimated liability may need to be adjusted. The Company regularly monitors public information regardinginsurer insolvencies and adjusts its estimated liability appropriately.

In the normal course of business, the Company is subject to various claims and assessments. Management believes the settlement ofthese matters would not have a material effect on the financial position, results of operations or cash flows of the Company. Note 12. Segment Information In reporting to management, the Company’s operating results are categorized into two business segments: Annuity and LifeInsurance. The Company’s Annuity segment consists of variable annuities and interest-sensitive annuities. The Company’s Life Insurance segment consists of variable life insurance products and interest-sensitive life insurance products. The accounting policies of the business segments are the same as those for the Company’s financial statements included herein. All revenue and expensetransactions are recorded at the product level and accumulated at the business segment level for review by management.

The following tables summarize each business segment’s contribution to select Statements of Income information for the years endedDecember 31:

The following tables represent select Balance Sheet information at December 31:

Annuity

Life Insurance Total

2013

Net revenues (a) $ 11,257 $ 5,637 $ 16,894 Amortization (accretion) of VOBA (96) 933 837 Policy benefits (net of reinsurance recoveries) 3,357 1,507 4,864 Income tax expense 894 511 1,405 Net income 3,964 1,757 5,721

2012

Net revenues (a) $ 10,968 $ 5,618 $ 16,586 Amortization of VOBA 1,666 593 2,259 Policy benefits (net of reinsurance recoveries) (1,881) 1,773 (108) Income tax expense 2,131 701 2,832 Net income 5,508 1,685 7,193

2011

Net revenues (a) $ 13,064 $ 6,165 $ 19,229 Amortization (accretion) of VOBA (453) 2,101 1,648 Policy benefits (net of reinsurance recoveries) 2,829 2,213 5,042 Income tax expense (benefit) 1,634 (120) 1,514 Net income 5,207 1,028 6,235

(a) Net revenues include total revenues net of interest credited to policyholder liabilities.

Total Assets

Total Policyholder

Liabilities

2013

Annuity $ 559,156 $ 61,673 Life Insurance 244,589 56,620

Total $ 803,745 $ 118,293

2012

Annuity $ 544,306 $ 62,538 Life Insurance 239,881 59,905

Total $ 784,187 $ 122,443

FINANCIAL STATEMENTSTransamerica Advisors Life Insurance Company of New York

ML of New York Variable Annuity Separate Account CYears Ended December 31, 2013 and 2012

1

Financial Statements

237

Statements of Assets and Liabilities........................................................................................... .........Statements of Operations and Changes in Net Assets.........................................................................Notes to Financial Statements.............................................................................................................

Transamerica Advisors Life Insurance Company of New YorkML of New York Variable Annuity Separate Account C

Financial StatementsYears Ended December 31, 2013 and 2012

Contents

Report of Independent Registered Public Accounting Firm.................................................................

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Organization

Subaccount Mutual Fund

BlackRock Money Market V.I. Class I Shares BlackRock Money Market V.I. Fund Class I SharesTransamerica Series Trust Transamerica Series Trust

TA Aegon U.S. Government Securities Service Class Transamerica AEGON U.S. Government Securities VP Service ClassTA AllianceBernstein Dynamic Allocation Service Class Transamerica AllianceBernstein Dynamic Allocation VP Service ClassTA Barrow Hanley Dividend Focused Service Class Transamerica Barrow Hanley Dividend Focused VP Service ClassTA BlackRock Tactical Allocation Service Class Transamerica BlackRock Transamericactical Allocation VP Service ClassTA BNP Paribas Large Cap Growth Service Class Transamerica BNP Paribas Large Cap Growth VP Service ClassTA Jennison Growth Service Class Transamerica Jennison Growth VP Service ClassTA JPMorgan Enhanced Index Service Class Transamerica JPMorgan Enhanced Index VP Service ClassTA JPMorgan Mid Cap Value Service Class Transamerica JPMorgan Mid Cap Value VP Service ClassTA MFS International Equity Service Class Transamerica MFS International Equity VP Service ClassTA Morgan Stanley Mid-Cap Growth Service Class Transamerica Morgan Stanley Mid-Cap Growth VP Service ClassTA PIMCO Total Return Service Class Transamerica PIMCO Total Return VP Service ClassTA Systematic Small/Mid Cap Value Service Class Transamerica Systematic Small/Mid Cap Value VP Service ClassTA T. Rowe Price Small Cap Service Class Transamerica T. Rowe Price Small Cap VP Service ClassTA TS&W International Equity Service Class Transamerica TS&W International Equity VP Service ClassTA WMC Diversified Growth Service Class Transamerica WMC Diversified Growth VP Service Class


Notes to Financial Statements

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

1. Organization and Summary of Significant Accounting Policies

December 31, 2013

The Separate Account is registered with the Securities and Exchange Commission as a Unit Investment Trust pursuant to provisions of theInvestment Company Act of 1940. The Separate Account consists of multiple investment subaccounts. Each subaccount invests exclusivelyin the corresponding portfolio of a Mutual Fund. Each Mutual Fund is registered as an open-end management investment company underthe Investment Company Act of 1940, as amended. Activity in these specified investment subaccounts is available to contract owners of

BlackRock Variable Series Funds, Inc.BlackRock Variable Series Funds, Inc.

Subaccount Investment by Mutual Fund:

8


Notes to Financial StatementsDecember 31, 2013

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

TA Aegon U.S. Government Securities Service Class August 21,2009TA AllianceBernstein Dynamic Allocation Service Class August 21,2009TA Barrow Hanley Dividend Focused Service Class August 21,2009TA BlackRock Tactical Allocation Service Class August 21,2009TA BNP Paribas Large Cap Growth Service Class August 21,2009TA Jennison Growth Service Class August 21,2009TA JPMorgan Enhanced Index Service Class August 21,2009TA JPMorgan Mid Cap Value Service Class August 21,2009TA MFS International Equity Service Class August 21,2009TA Morgan Stanley Mid-Cap Growth Service Class August 21,2009TA PIMCO Total Return Service Class August 21,2009TA Systematic Small/Mid Cap Value Service Class August 21,2009TA T. Rowe Price Small Cap Service Class August 21,2009TA TS&W International Equity Service Class August 21,2009TA WMC Diversified Growth Service Class August 21,2009

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

TA Barrow Hanley Dividend Focused Service Class TA BlackRock Large Cap Value Service ClassTA BNP Paribas Large Cap Growth Service Class TA Multi Managed Large Cap Core Service ClassTA TS&W International Equity Service Class TA Morgan Stanley Active International Service Class

Investments

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

Accounting Policy

Realized capital gains and losses from sales of shares in the Separate Account are determined on the first-in, first-out basis. Investmenttransactions 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 inNet Assets.

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

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

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

2. Investments

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

9

SubaccountBlackRock Money Market V.I. Class I Shares $ - $ - TA Aegon U.S. Government Securities Service Class - - TA AllianceBernstein Dynamic Allocation Service Class - - TA Barrow Hanley Dividend Focused Service Class 1,606 8,222 TA BlackRock Tactical Allocation Service Class - - TA BNP Paribas Large Cap Growth Service Class - - TA Jennison Growth Service Class - - TA JPMorgan Enhanced Index Service Class - - TA JPMorgan Mid Cap Value Service Class - - TA MFS International Equity Service Class 2,013 2,547 TA Morgan Stanley Mid-Cap Growth Service Class - - TA PIMCO Total Return Service Class 7,508 1,840 TA Systematic Small/Mid Cap Value Service Class - - TA T. Rowe Price Small Cap Service Class - - TA TS&W International Equity Service Class - - TA WMC Diversified Growth Service Class 299 5,558



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11



4. Financial Highlights

Unit Fair ValueCorresponding to Corresponding to

Year Lowest to Highest Net Lowest to Highest Subaccount Ended Units Expense Ratio Assets Expense Ratio

BlackRock Money Market V.I. Class I Shares12/31/2013 - $9.57 to $9.57 -$ - % 1.85 % to 1.85 % (1.83) % to (1.83) %12/31/2012 - 9.74 to 9.74 - - 1.85 to 1.85 (1.83) to (1.83) 12/31/2011 - 9.93 to 9.93 - - 1.85 to 1.85 (1.81) to (1.81) 12/31/2010 - 10.11 to 10.11 - - 1.85 to 1.85 (1.81) to (1.81) 12/31/2009 - 10.29 to 10.29 - - 1.85 to 1.85 (1.67) to (1.67)

TA Aegon U.S. Government Securities Service Class12/31/2013 - 10.77 to 10.77 - - 1.85 to 1.85 (4.27) to (4.27)12/31/2012 - 11.25 to 11.25 - - 1.85 to 1.85 2.94 to 2.94 12/31/2011 - 10.93 to 10.93 - - 1.85 to 1.85 5.34 to 5.34 12/31/2010 - 10.38 to 10.38 - - 1.85 to 1.85 2.33 to 2.33 12/31/2009(1) - 10.14 to 10.14 - - 1.85 to 1.85 1.39 to 1.39

TA AllianceBernstein Dynamic Allocation Service Class12/31/2013 - 12.99 to 12.99 - - 1.85 to 1.85 4.93 to 4.9312/31/2012 - 12.38 to 12.38 - 12.38 1.85 to 1.85 3.85 to 3.85 12/31/2011 - 11.92 to 11.92 - 11.92 1.85 to 1.85 (0.18) to (0.18) 12/31/2010 - 11.94 to 11.94 - 11.94 1.85 to 1.85 7.17 to 7.17 12/31/2009(1) - 11.14 to 11.14 - 11.14 1.85 to 1.85 11.39 to 11.39

TA Barrow Hanley Dividend Focused Service Class12/31/2013 3,825 16.38 to 16.38 62,639 2.12 1.85 to 1.85 27.55 to 27.5512/31/2012 4,269 12.84 to 12.84 54,807 1.64 1.85 to 1.85 9.42 to 9.42 12/31/2011 4,437 11.73 to 11.73 52,066 1.58 1.85 to 1.85 0.60 to 0.60 12/31/2010 4,787 11.66 to 11.66 55,826 0.75 1.85 to 1.85 8.15 to 8.15 12/31/2009(1) 2,941 10.78 to 10.78 31,715 - 1.85 to 1.85 7.84 to 7.84

TA BlackRock Tactical Allocation Service Class12/31/2013 - 14.08 to 14.08 - - 1.85 to 1.85 10.29 to 10.2912/31/2012 - 12.76 to 12.76 - - 1.85 to 1.85 7.99 to 7.99 12/31/2011 - 11.82 to 11.82 - - 1.85 to 1.85 1.86 to 1.86 12/31/2010 - 11.60 to 11.60 - - 1.85 to 1.85 9.22 to 9.22 12/31/2009(1) - 10.62 to 10.62 - - 1.85 to 1.85 6.24 to 6.24

TA BNP Paribas Large Cap Growth Service Class12/31/2013 - 18.49 to 18.49 - - 1.85 to 1.85 30.38 to 30.3812/31/2012 - 14.18 to 14.18 - - 1.85 to 1.85 14.68 to 14.68 12/31/2011 - 12.37 to 12.37 - - 1.85 to 1.85 (4.30) to (4.30) 12/31/2010 - 12.92 to 12.92 - - 1.85 to 1.85 16.72 to 16.72 12/31/2009(1) - 11.07 to 11.07 - - 1.85 to 1.85 10.71 to 10.71

TA Jennison Growth Service Class12/31/2013 - 18.36 to 18.36 - - 1.85 to 1.85 34.78 to 34.7812/31/2012 - 13.62 to 13.62 - - 1.85 to 1.85 13.29 to 13.29 12/31/2011 - 12.03 to 12.03 - - 1.85 to 1.85 (2.57) to (2.57) 12/31/2010 - 12.34 to 12.34 - - 1.85 to 1.85 9.94 to 9.94 12/31/2009(1) - 11.23 to 11.23 - - 1.85 to 1.85 12.28 to 12.28

TA JPMorgan Enhanced Index Service Class12/31/2013 - 17.81 to 17.81 - - 1.85 to 1.85 29.71 to 29.7112/31/2012 - 13.73 to 13.73 - - 1.85 to 1.85 13.96 to 13.96 12/31/2011 - 12.05 to 12.05 - - 1.85 to 1.85 (1.35) to (1.35) 12/31/2010 - 12.22 to 12.22 - - 1.85 to 1.85 12.77 to 12.77 12/31/2009(1) - 10.83 to 10.83 - - 1.85 to 1.85 8.32 to 8.32

Expense Total Return***Investment Ratio**

Income Lowest to Ratio* Highest

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.

12



4. Financial Highlights (continued)

Unit Fair ValueCorresponding to Corresponding to

Year Lowest to Highest Net Lowest to Highest Subaccount Ended Units Expense Ratio Assets Expense Ratio

TA JPMorgan Mid Cap Value Service Class12/31/2013 - $20.02 to $20.02 -$ - % 1.85 to 1.85 % 29.06 % to 29.06 %12/31/2012 - 15.51 to 15.51 - - 1.85 to 1.85 18.03 to 18.03 12/31/2011 - 13.14 to 13.14 - - 1.85 to 1.85 (0.11) to (0.11) 12/31/2010 - 13.16 to 13.16 - - 1.85 to 1.85 20.59 to 20.59 12/31/2009(1) - 10.91 to 10.91 - - 1.85 to 1.85 9.09 to 9.09

TA MFS International Equity Service Class12/31/2013 1,607 14.62 to 14.62 23,490 1.09 1.85 to 1.85 15.61 to 15.6112/31/2012 1,626 12.64 to 12.64 20,553 1.55 1.85 to 1.85 19.64 to 19.64 12/31/2011 1,848 10.57 to 10.57 19,525 1.06 1.85 to 1.85 (11.85) to (11.85) 12/31/2010 1,746 11.99 to 11.99 20,935 1.33 1.85 to 1.85 8.30 to 8.30 12/31/2009(1) 1,719 11.07 to 11.07 19,029 - 1.85 to 1.85 10.68 to 10.68

TA Morgan Stanley Mid-Cap Growth Service Class12/31/2013 - 19.33 to 19.33 - - 1.85 to 1.85 36.28 to 36.2812/31/2012 - 14.19 to 14.19 - - 1.85 to 1.85 6.78 to 6.78 12/31/2011 - 13.29 to 13.29 - - 1.85 to 1.85 (8.61) to (8.61) 12/31/2010 - 14.54 to 14.54 - - 1.85 to 1.85 31.16 to 31.16 12/31/2009(1) - 11.08 to 11.08 - - 1.85 to 1.85 10.84 to 10.84

TA PIMCO Total Return Service Class12/31/2013 2,773 11.30 to 11.30 31,320 2.02 1.85 to 1.85 (4.55) to (4.55)12/31/2012 2,316 11.83 to 11.83 27,403 3.90 1.85 to 1.85 5.35 to 5.35 12/31/2011 2,318 11.23 to 11.23 26,033 2.38 1.85 to 1.85 4.03 to 4.03 12/31/2010 2,585 10.80 to 10.80 27,913 3.56 1.85 to 1.85 4.99 to 4.99 12/31/2009(1) 2,467 10.28 to 10.28 25,372 - 1.85 to 1.85 2.84 to 2.84

TA Systematic Small/Mid Cap Value Service Class12/31/2013 - 19.78 to 19.78 - - 1.85 to 1.85 33.54 to 33.5412/31/2012 - 14.81 to 14.81 - - 1.85 to 1.85 13.91 to 13.91 12/31/2011 - 13.00 to 13.00 - - 1.85 to 1.85 (4.62) to (4.62) 12/31/2010 - 13.63 to 13.63 - - 1.85 to 1.85 27.69 to 27.69 12/31/2009(1) - 10.68 to 10.68 - - 1.85 to 1.85 6.76 to 6.76

TA T. Rowe Price Small Cap Service Class12/31/2013 - 23.44 to 23.44 - - 1.85 to 1.85 41.07 to 41.0712/31/2012 - 16.62 to 16.62 - - 1.85 to 1.85 13.29 to 13.29 12/31/2011 - 14.67 to 14.67 - - 1.85 to 1.85 (0.33) to (0.33) 12/31/2010 - 14.72 to 14.72 - - 1.85 to 1.85 31.63 to 31.63 12/31/2009(1) - 11.18 to 11.18 - - 1.85 to 1.85 11.80 to 11.80

TA TS&W International Equity Service Class12/31/2013 - 13.23 to 13.23 - - 1.85 to 1.85 21.80 to 21.8012/31/2012 - 10.86 to 10.86 - - 1.85 to 1.85 14.30 to 14.30 12/31/2011 - 9.50 to 9.50 - - 1.85 to 1.85 (16.12) to (16.12) 12/31/2010 - 11.33 to 11.33 - - 1.85 to 1.85 6.24 to 6.24 12/31/2009(1) - 10.66 to 10.66 - - 1.85 to 1.85 6.61 to 6.61

TA WMC Diversified Growth Service Class12/31/2013 2,283 17.15 to 17.15 39,150 0.79 1.85 to 1.85 29.71 to 29.7112/31/2012 2,591 13.22 to 13.22 34,254 0.12 1.85 to 1.85 10.79 to 10.79 12/31/2011 2,727 11.93 to 11.93 32,541 0.33 1.85 to 1.85 (5.67) to (5.67) 12/31/2010 2,758 12.65 to 12.65 34,891 0.33 1.85 to 1.85 15.35 to 15.35 12/31/2009(1) 2,892 10.97 to 10.97 31,715 - 1.85 to 1.85 9.68 to 9.68

Expense Total Return***Investment Ratio**

Income Lowest to Ratio* Highest

13



4. Financial Highlights (continued)

(1) See footnote 1

*

**

***

These amounts represent the annualized contract expenses of the subaccount, consisting primarily of mortality and expensecharges, 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 havebeen excluded.

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

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

14

7. Dividend Distributions

6. Income Tax

Operations of the Separate Account form a part of TALICNY, which is taxed as a life insurance company underSubchapter L of the Internal Revenue Code of 1986, as amended (the Code). The operations of the SeparateAccount are accounted for separately from other operations of TALICNY for purposes of federal income taxation.The Separate Account is not separately taxable as a regulated investment company under Subchapter M of theCode and is not otherwise taxable as an entity separate from TALICNY. Under existing federal income tax laws,the income of the Separate Account is not taxable to TALICNY, as long as earnings are credited under thevariable annuity contracts.

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



TALICNY deducts an annual charge during the accumulation phase, not to exceed $50, proportionately from thesubaccounts’ unit values. An annual charge of 1.85% is deducted (based on the death benefit selected) from theunit values of the subaccounts of the Separate Account for TALICNY's assumption of certain mortality andexpense risks incurred in connection with the contract. The charge is assessed daily based on the net asset valueof the Mutual Fund. Charges for administrative and mortality and expense risk are an expense of thesubaccount. Charges reflected above are those currently assessed and may be subject to change. Contractowners should see their actual policy and any related attachments to determine their specific charges.

5. Administrative and Mortality and Expense Risk Charges

15

a) Quoted prices for similar assets or liabilities in active marketsb) Quoted prices for identical or similar assets or liabilities in non-active marketsc) Inputs other than quoted market prices that are observable

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



8. Fair Value Measurements and Fair Value Hierarchy

Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to theoverall fair value measurement. They reflect management’s own assumptions about the assumptions a marketparticipant 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 valueand are based upon daily unadjusted quoted prices, therefore are considered Level 1.

9. Subsequent Events

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

The Separate Account has categorized its financial instruments into a three level hierarchy which is based on thepriority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quotedprices 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 levelis 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 categorizedas 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 indirectlyfor substantially the full term of the asset or liability. Level 2 inputs include the following:

d) Inputs that are derived principally from or corroborated by observable market data

Transamerica Capital, Inc. serves as the principal underwriter for the policies. More information about Transamerica Capital, Inc. is available at www.finra.org or by calling 1-800-289-9999. You can also obtain an investor brochure from FINRA, Inc. describing its Public Disclosure Program.

This cover is not part of the prospectus. This prospectus does not constitute an offering in any jurisdiction in which such offering may not be lawfully made. No person is authorized to make any representations in connection with these offerings, other than those contained in this prospectus.

MLCANYPC0514

Transamerica Advisors Life Insurance Company of New York Service Center 4333 Edgewood Road NE Cedar Rapids, IA 52499

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