|Edgar Online, Inc.|
This Management's Narrative Analysis of Results of Operations should be read in conjunction with the Financial Statements and Notes to Financial Statements included herein.
Forward Looking Statements
Certain statements in this report may be considered forward-looking, including those about management expectations, strategic objectives, growth opportunities, business prospects, anticipated financial results and other similar matters. These forward-looking statements represent only management's beliefs regarding future performance, which is inherently uncertain. There are a variety of factors, many of which are beyond the Company's control, which affect its operations, performance, business strategy and results and could cause its actual results and experience to differ materially from the expectations and objectives expressed in any forward-looking statements. These factors include, but are not limited to, actions and initiatives taken by current and potential competitors, general economic conditions, the effects of current, pending and future legislation, regulation and regulatory actions, and the other risks and uncertainties detailed in this report. See Risk Factors in the 2012 Annual Report on Form 10-K. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. The Company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the dates they are made. The reader should, however, consult further disclosures the Company may make in future filings of its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Business Overview
Transamerica Advisors Life Insurance Company of New York("TALICNY", "Registrant", the "Company", "we", "our", or "us") is a wholly owned subsidiary of AEGON USA, LLC("AUSA"). AUSAis an indirect wholly owned subsidiary of AEGON N.V., a limited liability share company organized under Dutch law. The Company is domiciled in New York. TALICNY conducts its business primarily in the annuity markets and to a lesser extent in the life insurance markets of the financial services industry. The Company offered the following guaranteed benefits within its variable annuity product suite: guaranteed minimum death benefits ("GMDB"), guaranteed minimum income benefits ("GMIB") and guaranteed minimum withdrawal benefits ("GMWB"). The Company makes available, free of charge, annual reports on Form 10-K, quarterly reports on 10-Q, and current reports on Form 8-K. This information is available through the About US - Financial Strength section of the Transamericawebsite at www.Transamerica.com. These reports are available through the website as soon as reasonably practicable after the Registrant electronically files such material with, or furnishes it to, the Securities and Exchange Commission.
The Company's gross earnings are principally derived from two sources:
• the charges imposed on variable annuity and variable life insurance
• the net earnings from investment of fixed rate life insurance and annuity
contract owner deposits less interest credited to contract owners,
commonly known as interest spread.
The costs associated with acquiring contract owner deposits (deferred policy acquisition costs) are amortized over the period in which the Company anticipates holding those funds, as noted in the Critical Accounting Policies and Estimates section below. Insurance expenses and taxes reported in the Statements of Income are net of amounts deferred. In addition, the Company incurs expenses associated with the maintenance of in force contracts. Deposits Total direct deposits (including internal exchanges) were
$0.1 millionand $0.1 millionfor the three months ended March 31, 2013and 2012, respectively. There were no internal exchanges during the three months ended March 31, 2013. Internal exchanges during the three months ended March 31, 2012were less than $0.1 million. 25
Financial Condition At
March 31, 2013, the Company's assets were $794.1 millionor $9.3 millionhigher than the $784.8 millionin assets at December 31, 2012. Assets excluding Separate Accounts assets decreased $1.2 millionduring the first quarter of 2013. Separate Accounts assets, which represent 68% of total assets, increased $10.5 millionto $536.9 million.
Changes in Separate Accounts assets were as follows: