Tflic Separate Account B

04/24/2026 | Press release | Distributed by Public on 04/24/2026 15:23

Financial Statements by Insurance Company (Form N-VPFS)

FINANCIAL STATEMENTS
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Years Ended December 31, 2025 and 2024
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Financial Statements
Years Ended December 31, 2025 and 2024
Report of Independent Registered Public Accounting Firm 3
Statements of Assets and Liabilities 4
Statements of Operations and Changes in Net Assets 5
Notes to Financial Statements 10
2
Report of Independent Registered Public Accounting Firm
To the Board of Directors of Transamerica Financial Life Insurance Company and
Contract Owners of TFLIC Separate Account B
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of each of the subaccounts listed in the table below that comprise TFLIC Separate Account B (the Separate Account), as of December 31, 2025, the related statements of operations and changes in net assets for each of the periods indicated in the table below, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each subaccount as of December 31, 2025, the results of its operations and changes in its net assets for each of the periods indicated in the table below, in conformity with U.S. generally accepted accounting principles.
Subaccounts
TA S&P 500 Index Initial Class (1)
Vanguard® International (1)
Vanguard® Balanced (1)
Vanguard® Mid-Cap Index (1)
Vanguard® Capital Growth (1)
Vanguard® Moderate Allocation (1)
Vanguard® Conservative Allocation (1)
Vanguard® Money Market (1)
Vanguard® Diversified Value (1)
Vanguard® Real Estate Index (1)
Vanguard® Equity Income (1)
Vanguard® Short-Term Investment Grade (1)
Vanguard® Equity Index (1)
Vanguard® Small Company Growth (1)
Vanguard® Global Bond Index (1)
Vanguard® Total Bond Market Index (1)
Vanguard® Growth (1)
Vanguard® Total International Stock Market Index (1)
Vanguard® High Yield Bond (1)
Vanguard® Total Stock Market Index (1)
(1) Statements of operations and changes in net assets for the years ended December 31, 2025 and 2024
Basis for Opinion
These financial statements are the responsibility of the Separate Account's management. Our responsibility is to express an opinion on each of the subaccounts' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2025, by correspondence with the fund companies or their transfer agents, as applicable. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the auditor of the Separate Account since 2024.
Chicago, IL
April 24, 2026
3
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Statements of Assets and Liabilities
December 31, 2025
Subaccount Number of Shares Cost Assets at Market Value Due (to)/from General Account Net Assets Units Outstanding Range of Unit Values
TA S&P 500 Index Initial Class 690,480.262 $ 16,084,940 $ 19,602,735 $ (4) $ 19,602,731 1,138,036 $ 17.225050 $ 17.225050
Vanguard® Balanced 6,279,825.308 142,570,556 159,570,361 24 159,570,385 765,646 208.412869 208.412869
Vanguard® Capital Growth 1,675,284.103 72,213,108 103,566,063 5 103,566,068 663,124 156.179107 156.179107
Vanguard® Conservative Allocation 1,091,328.003 27,433,067 28,876,539 (20) 28,876,519 634,537 45.508036 45.508036
Vanguard® Diversified Value 2,188,028.516 33,819,149 38,224,858 22 38,224,880 460,940 82.928185 82.928185
Vanguard® Equity Income 2,960,567.950 68,432,405 77,626,092 11 77,626,103 379,038 204.797607 204.797607
Vanguard® Equity Index 2,945,463.860 145,275,646 241,410,218 (14) 241,410,204 786,047 307.119416 307.119416
Vanguard® Global Bond Index 611,259.206 12,266,334 11,510,011 7 11,510,018 516,442 22.287156 22.287156
Vanguard® Growth 2,822,799.184 75,672,238 103,540,274 - 103,540,274 588,058 176.071523 176.071523
Vanguard® High Yield Bond 3,290,203.823 24,198,648 24,841,039 (3) 24,841,036 511,971 48.520364 48.520364
Vanguard® International 2,978,553.339 84,185,161 85,156,840 63 85,156,903 880,091 96.759203 96.759203
Vanguard® Mid-Cap Index 2,158,550.293 50,753,287 60,353,066 11 60,353,077 482,087 125.191212 125.191212
Vanguard® Moderate Allocation 1,143,743.476 33,731,167 38,063,783 (26) 38,063,757 643,566 59.145043 59.145043
Vanguard® Money Market 79,324,787.289 79,324,787 79,324,787 (26) 79,324,761 34,566,275 2.294860 2.294860
Vanguard® Real Estate Index 2,280,468.327 27,909,382 26,385,019 7 26,385,026 303,181 87.027405 87.027405
Vanguard® Short-Term Investment Grade 5,333,521.338 55,863,138 56,908,673 (18) 56,908,655 2,395,569 23.755796 23.755796
Vanguard® Small Company Growth 3,274,158.255 60,461,919 62,438,198 (1) 62,438,197 406,453 153.617247 153.617247
Vanguard® Total Bond Market Index 7,056,587.792 81,082,010 76,211,148 (62) 76,211,086 1,761,159 43.273251 43.273251
Vanguard® Total International Stock Market Index 1,028,210.764 22,558,357 27,617,741 32 27,617,773 792,367 34.854767 34.854767
Vanguard® Total Stock Market Index 3,305,381.235 147,417,359 201,396,879 (41) 201,396,838 1,896,211 106.210114 106.210114
See accompanying notes.
4
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2025 and 2024
TA S&P 500 Index Initial Class Vanguard® Balanced Vanguard® Capital Growth Vanguard® Conservative Allocation
Subaccount Subaccount Subaccount Subaccount
Net Assets as of December 31, 2023: $ 5,304,063 $ 145,049,663 $ 85,869,932 $ 30,279,587
Investment Income:
Reinvested Dividends 126,203 3,476,700 993,965 852,973
Investment Expense:
Mortality and Expense Risk and Administrative Charges 30,537 408,120 243,842 83,529
Net Investment Income (Loss) 95,666 3,068,580 750,123 769,444
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions 253,232 7,519,438 1,816,822 722,986
Realized Gain (Loss) on Investments 530,372 1,006,516 3,895,222 (446,942)
Net Realized Capital Gains (Losses) on Investments 783,604 8,525,954 5,712,044 276,044
Net Change in Unrealized Appreciation (Depreciation) 1,367,569 8,570,575 4,378,949 1,095,072
Net Gain (Loss) on Investment 2,151,173 17,096,529 10,090,993 1,371,116
Net Increase (Decrease) in Net Assets Resulting from Operations 2,246,839 20,165,109 10,841,116 2,140,560
Increase (Decrease) in Net Assets from Contract Transactions 7,302,504 (13,990,849) (7,604,754) (3,143,994)
Total Increase (Decrease) in Net Assets 9,549,343 6,174,260 3,236,362 (1,003,434)
Net Assets as of December 31, 2024: $ 14,853,406 $ 151,223,923 $ 89,106,294 $ 29,276,153
Investment Income:
Reinvested Dividends 169,006 3,205,906 942,965 763,852
Investment Expense:
Mortality and Expense Risk and Administrative Charges 47,599 408,726 245,898 78,424
Net Investment Income (Loss) 121,407 2,797,180 697,067 685,428
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions 95,170 13,731,840 4,051,721 894,797
Realized Gain (Loss) on Investments 847,648 540,344 4,165,889 79,869
Net Realized Capital Gains (Losses) on Investments 942,818 14,272,184 8,217,610 974,666
Net Change in Unrealized Appreciation (Depreciation) 1,882,924 5,784,871 14,470,127 1,757,335
Net Gain (Loss) on Investment 2,825,742 20,057,055 22,687,737 2,732,001
Net Increase (Decrease) in Net Assets Resulting from Operations 2,947,149 22,854,235 23,384,804 3,417,429
Increase (Decrease) in Net Assets from Contract Transactions 1,802,176 (14,507,773) (8,925,030) (3,817,063)
Total Increase (Decrease) in Net Assets 4,749,325 8,346,462 14,459,774 (399,634)
Net Assets as of December 31, 2025: $ 19,602,731 $ 159,570,385 $ 103,566,068 $ 28,876,519
See Accompanying Notes
(1)See Footnote 1
5
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2025 and 2024
Vanguard® Diversified Value Vanguard® Equity Income Vanguard® Equity Index Vanguard® Global Bond Index
Subaccount Subaccount Subaccount Subaccount
Net Assets as of December 31, 2023: $ 34,418,406 $ 68,356,199 $ 185,376,374 $ 12,065,766
Investment Income:
Reinvested Dividends 569,256 2,071,006 2,641,244 346,820
Investment Expense:
Mortality and Expense Risk and Administrative Charges 100,698 192,417 557,608 31,323
Net Investment Income (Loss) 468,558 1,878,589 2,083,636 315,497
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions 2,057,557 4,365,796 7,551,147 12,909
Realized Gain (Loss) on Investments 2,869,439 527,763 9,673,197 (335,396)
Net Realized Capital Gains (Losses) on Investments 4,926,996 4,893,559 17,224,344 (322,487)
Net Change in Unrealized Appreciation (Depreciation) (443,441) 2,966,729 24,905,878 201,000
Net Gain (Loss) on Investment 4,483,555 7,860,288 42,130,222 (121,487)
Net Increase (Decrease) in Net Assets Resulting from Operations 4,952,113 9,738,877 44,213,858 194,010
Increase (Decrease) in Net Assets from Contract Transactions (2,222,021) (7,131,449) (10,725,236) (2,014,713)
Total Increase (Decrease) in Net Assets 2,730,092 2,607,428 33,488,622 (1,820,703)
Net Assets as of December 31, 2024: $ 37,148,498 $ 70,963,627 $ 218,864,996 $ 10,245,063
Investment Income:
Reinvested Dividends 599,663 1,863,664 2,412,116 310,994
Investment Expense:
Mortality and Expense Risk and Administrative Charges 100,130 198,002 609,066 28,977
Net Investment Income (Loss) 499,533 1,665,662 1,803,050 282,017
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions 3,135,654 5,665,134 4,647,718 18,959
Realized Gain (Loss) on Investments 1,983,871 911,926 14,038,143 (281,139)
Net Realized Capital Gains (Losses) on Investments 5,119,525 6,577,060 18,685,861 (262,180)
Net Change in Unrealized Appreciation (Depreciation) (65,908) 2,958,752 16,447,387 530,053
Net Gain (Loss) on Investment 5,053,617 9,535,812 35,133,248 267,873
Net Increase (Decrease) in Net Assets Resulting from Operations 5,553,150 11,201,474 36,936,298 549,890
Increase (Decrease) in Net Assets from Contract Transactions (4,476,768) (4,538,998) (14,391,090) 715,065
Total Increase (Decrease) in Net Assets 1,076,382 6,662,476 22,545,208 1,264,955
Net Assets as of December 31, 2025: $ 38,224,880 $ 77,626,103 $ 241,410,204 $ 11,510,018
See Accompanying Notes
(1)See Footnote 1
6
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2025 and 2024
Vanguard® Growth Vanguard® High Yield Bond Vanguard® International Vanguard® Mid-Cap Index
Subaccount Subaccount Subaccount Subaccount
Net Assets as of December 31, 2023: $ 74,883,238 $ 25,866,947 $ 81,217,924 $ 58,241,066
Investment Income:
Reinvested Dividends 245,632 1,452,752 1,009,852 839,295
Investment Expense:
Mortality and Expense Risk and Administrative Charges 240,732 70,003 218,395 163,269
Net Investment Income (Loss) 4,900 1,382,749 791,457 676,026
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions - - 2,673,224 699,479
Realized Gain (Loss) on Investments 2,649,774 (222,523) 3,025,412 1,051,017
Net Realized Capital Gains (Losses) on Investments 2,649,774 (222,523) 5,698,636 1,750,496
Net Change in Unrealized Appreciation (Depreciation) 21,767,265 373,165 398,633 5,790,690
Net Gain (Loss) on Investment 24,417,039 150,642 6,097,269 7,541,186
Net Increase (Decrease) in Net Assets Resulting from Operations 24,421,939 1,533,391 6,888,726 8,217,212
Increase (Decrease) in Net Assets from Contract Transactions (3,429,281) (1,630,557) (12,719,767) (5,026,544)
Total Increase (Decrease) in Net Assets 20,992,658 (97,166) (5,831,041) 3,190,668
Net Assets as of December 31, 2024: $ 95,875,896 $ 25,769,781 $ 75,386,883 $ 61,431,734
Investment Income:
Reinvested Dividends 194,221 1,657,106 724,265 774,143
Investment Expense:
Mortality and Expense Risk and Administrative Charges 265,137 67,437 225,855 166,974
Net Investment Income (Loss) (70,916) 1,589,669 498,410 607,169
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions 5,256,384 - 4,881,385 3,084,088
Realized Gain (Loss) on Investments 3,461,251 (230,021) (178,625) 2,063,440
Net Realized Capital Gains (Losses) on Investments 8,717,635 (230,021) 4,702,760 5,147,528
Net Change in Unrealized Appreciation (Depreciation) 7,202,102 761,422 9,307,990 890,691
Net Gain (Loss) on Investment 15,919,737 531,401 14,010,750 6,038,219
Net Increase (Decrease) in Net Assets Resulting from Operations 15,848,821 2,121,070 14,509,160 6,645,388
Increase (Decrease) in Net Assets from Contract Transactions (8,184,443) (3,049,815) (4,739,140) (7,724,045)
Total Increase (Decrease) in Net Assets 7,664,378 (928,745) 9,770,020 (1,078,657)
Net Assets as of December 31, 2025: $ 103,540,274 $ 24,841,036 $ 85,156,903 $ 60,353,077
See Accompanying Notes
(1)See Footnote 1
7
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2025 and 2024
Vanguard® Moderate Allocation Vanguard® Money Market Vanguard® Real Estate Index Vanguard® Short-Term Investment Grade
Subaccount Subaccount Subaccount Subaccount
Net Assets as of December 31, 2023: $ 41,921,528 $ 70,417,879 $ 32,823,499 $ 51,505,260
Investment Income:
Reinvested Dividends 1,004,266 3,726,770 1,010,305 1,816,556
Investment Expense:
Mortality and Expense Risk and Administrative Charges 108,647 199,921 83,037 142,825
Net Investment Income (Loss) 895,619 3,526,849 927,268 1,673,731
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions 816,579 - 852,305 -
Realized Gain (Loss) on Investments 866,147 - (556,006) (263,534)
Net Realized Capital Gains (Losses) on Investments 1,682,726 - 296,299 (263,534)
Net Change in Unrealized Appreciation (Depreciation) 1,306,330 - 55,359 996,066
Net Gain (Loss) on Investment 2,989,056 - 351,658 732,532
Net Increase (Decrease) in Net Assets Resulting from Operations 3,884,675 3,526,849 1,278,926 2,406,263
Increase (Decrease) in Net Assets from Contract Transactions (9,467,189) 4,045,771 (5,518,298) 71,182
Total Increase (Decrease) in Net Assets (5,582,514) 7,572,620 (4,239,372) 2,477,445
Net Assets as of December 31, 2024: $ 36,339,014 $ 77,990,499 $ 28,584,127 $ 53,982,705
Investment Income:
Reinvested Dividends 898,153 3,222,754 773,031 2,233,322
Investment Expense:
Mortality and Expense Risk and Administrative Charges 100,783 211,803 74,140 147,351
Net Investment Income (Loss) 797,370 3,010,951 698,891 2,085,971
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions 1,508,818 - 494,975 -
Realized Gain (Loss) on Investments 1,045,838 - (339,871) (313,923)
Net Realized Capital Gains (Losses) on Investments 2,554,656 - 155,104 (313,923)
Net Change in Unrealized Appreciation (Depreciation) 2,178,919 - (152,773) 1,672,343
Net Gain (Loss) on Investment 4,733,575 - 2,331 1,358,420
Net Increase (Decrease) in Net Assets Resulting from Operations 5,530,945 3,010,951 701,222 3,444,391
Increase (Decrease) in Net Assets from Contract Transactions (3,806,202) (1,676,689) (2,900,323) (518,441)
Total Increase (Decrease) in Net Assets 1,724,743 1,334,262 (2,199,101) 2,925,950
Net Assets as of December 31, 2025: $ 38,063,757 $ 79,324,761 $ 26,385,026 $ 56,908,655
See Accompanying Notes
(1)See Footnote 1
8
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2025 and 2024
Vanguard® Small Company Growth Vanguard® Total Bond Market Index Vanguard® Total International Stock Market Index Vanguard® Total Stock Market Index
Subaccount Subaccount Subaccount Subaccount
Net Assets as of December 31, 2023: $ 65,372,530 $ 80,579,219 $ 21,815,103 $ 156,530,583
Investment Income:
Reinvested Dividends 362,394 2,211,385 651,086 2,144,060
Investment Expense:
Mortality and Expense Risk and Administrative Charges 179,763 214,070 57,180 473,712
Net Investment Income (Loss) 182,631 1,997,315 593,906 1,670,348
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions - - 110,510 11,754,555
Realized Gain (Loss) on Investments (2,960,923) (1,239,525) 38,698 7,653,636
Net Realized Capital Gains (Losses) on Investments (2,960,923) (1,239,525) 149,208 19,408,191
Net Change in Unrealized Appreciation (Depreciation) 9,726,057 (35,864) 295,233 15,026,513
Net Gain (Loss) on Investment 6,765,134 (1,275,389) 444,441 34,434,704
Net Increase (Decrease) in Net Assets Resulting from Operations 6,947,765 721,926 1,038,347 36,105,052
Increase (Decrease) in Net Assets from Contract Transactions (6,206,094) (4,624,917) (2,836,951) (7,643,306)
Total Increase (Decrease) in Net Assets 741,671 (3,902,991) (1,798,604) 28,461,746
Net Assets as of December 31, 2024: $ 66,114,201 $ 76,676,228 $ 20,016,499 $ 184,992,329
Investment Income:
Reinvested Dividends 300,870 2,637,686 652,398 2,184,862
Investment Expense:
Mortality and Expense Risk and Administrative Charges 166,914 204,708 61,031 507,775
Net Investment Income (Loss) 133,956 2,432,978 591,367 1,677,087
Increase (Decrease) in Net Assets from Operations:
Capital Gain Distributions 4,277,185 - 397,709 10,199,450
Realized Gain (Loss) on Investments (1,652,964) (1,189,263) (58,801) 6,871,588
Net Realized Capital Gains (Losses) on Investments 2,624,221 (1,189,263) 338,908 17,071,038
Net Change in Unrealized Appreciation (Depreciation) 543,697 3,657,657 5,142,434 10,401,714
Net Gain (Loss) on Investment 3,167,918 2,468,394 5,481,342 27,472,752
Net Increase (Decrease) in Net Assets Resulting from Operations 3,301,874 4,901,372 6,072,709 29,149,839
Increase (Decrease) in Net Assets from Contract Transactions (6,977,878) (5,366,514) 1,528,565 (12,745,330)
Total Increase (Decrease) in Net Assets (3,676,004) (465,142) 7,601,274 16,404,509
Net Assets as of December 31, 2025: $ 62,438,197 $ 76,211,086 $ 27,617,773 $ 201,396,838
See Accompanying Notes
(1)See Footnote 1
9
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Notes to Financial Statements
December 31, 2025
1. Organization
TFLIC Separate Account B (the Separate Account) is a segregated investment account of Transamerica Financial Life Insurance Company (TFLIC), an indirect wholly owned subsidiary of Aegon Ltd., a holding company organized under the laws of the Bermuda.
The Separate Account is registered with the Securities and Exchange Commission as a Unit Investment Trust pursuant to provisions of the Investment Company Act of 1940. TFLIC and the Separate Account are regulated by the Securities and Exchange Commission. The assets and liabilities of the Separate Account are clearly identified and distinguished from TFLIC's other assets and liabilities. The Separate Account consists of multiple investment subaccounts. Each subaccount invests exclusively in the corresponding portfolio of a Mutual Fund. Each Mutual Fund is registered as an open-end management investment company under the Investment Company Act of 1940, as amended. Activity in these specified investment subaccounts is available to contract owners of Vanguard Variable Annuity Plan (NY).
Subaccount Investment by Mutual Fund:
Subaccount Mutual Fund
Transamerica Series Trust Transamerica Series Trust
TA S&P 500 Index Initial Class Transamerica S&P 500 Index VP Initial Class
Vanguard® Variable Insurance Fund: Vanguard® Variable Insurance Fund:
Vanguard® Balanced Vanguard® Balanced Portfolio
Vanguard® Capital Growth Vanguard® Capital Growth Portfolio
Vanguard® Conservative Allocation Vanguard® Conservative Allocation Portfolio
Vanguard® Diversified Value Vanguard® Diversified Value Portfolio
Vanguard® Equity Income Vanguard® Equity Income Portfolio
Vanguard® Equity Index Vanguard® Equity Index Portfolio
Vanguard® Global Bond Index Vanguard® Global Bond Index Portfolio
Vanguard® Growth Vanguard® Growth Portfolio
Vanguard® High Yield Bond Vanguard® High Yield Bond Portfolio
Vanguard® International Vanguard® International Portfolio
Vanguard® Mid-Cap Index Vanguard® Mid-Cap Index Portfolio
Vanguard® Moderate Allocation Vanguard® Moderate Allocation Portfolio
Vanguard® Money Market Vanguard® Money Market Portfolio
Vanguard® Real Estate Index Vanguard® Real Estate Index Portfolio
Vanguard® Short-Term Investment Grade Vanguard® Short-Term Investment Grade Portfolio
Vanguard® Small Company Growth Vanguard® Small Company Growth Portfolio
Vanguard® Total Bond Market Index Vanguard® Total Bond Market Index Portfolio
Vanguard® Total International Stock Market Index Vanguard® Total International Stock Market Index Portfolio
Vanguard® Total Stock Market Index Vanguard® Total Stock Market Index Portfolio
Each period reported on reflects a full twelve month period except as follows:
Subaccount Inception Date
TA S&P 500 Index Initial Class May 2, 2022
10
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Notes to Financial Statements
December 31, 2025
2. Summary of Significant Accounting Policies
The financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable annuity separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.
Investments
Net purchase payments received by the Separate Account are invested in the portfolios of the Mutual Funds as selected by the contract owner. Investments are stated at the closing net asset values per share on December 31, 2025.
Realized capital gains and losses from sales of shares in the Separate Account are determined on the first-in, first-out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividend income is recorded on the ex-dividend date. Unrealized gains or losses from investments in the Mutual Funds are included in the Statements of Operations and Changes in Net Assets.
Dividend Income
Dividends received from the Mutual Fund investments are reinvested to purchase additional mutual fund shares.
Fair Value Measurements and Fair Value Hierarchy
The Accounting Standards Codification™ (ASC) 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the nature of inputs used to measure fair value and enhances disclosure requirements for fair value measurements.
The Separate Account has categorized its financial instruments into a three level hierarchy which is based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.
Financial assets and liabilities recorded at fair value on the Statements of Assets and Liabilities are categorized as follows:
Level 1. Unadjusted quoted prices for identical assets or liabilities in an active market.
Level 2. Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
a) Quoted prices for similar assets or liabilities in active markets
b) Quoted prices for identical or similar assets or liabilities in non-active markets
c) Inputs other than quoted market prices that are observable
d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means.
Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management's own assumptions about the assumptions a market participant would use in pricing the asset or liability.
All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon published closing NAV per share and therefore are considered Level 1.
There were no transfers between Level 1, Level 2 and Level 3 during the year ended December 31, 2025.
11
TFLIC Separate Account B
Notes to Financial Statements
December 31, 2025
3. Investments
The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2025 were as follows:
Subaccount Purchases Sales
TA S&P 500 Index Initial Class $ 5,029,120 $ 3,010,361
Vanguard® Balanced 21,226,709 19,205,470
Vanguard® Capital Growth 9,361,190 13,537,440
Vanguard® Conservative Allocation 5,160,699 7,397,531
Vanguard® Diversified Value 5,457,133 6,298,717
Vanguard® Equity Income 12,491,673 9,699,880
Vanguard® Equity Index 17,071,505 25,011,813
Vanguard® Global Bond Index 2,777,255 1,761,216
Vanguard® Growth 15,000,920 17,999,894
Vanguard® High Yield Bond 2,606,287 4,066,431
Vanguard® International 15,429,138 14,788,487
Vanguard® Mid-Cap Index 7,008,977 11,041,762
Vanguard® Moderate Allocation 5,842,806 7,342,814
Vanguard® Money Market 32,258,213 30,923,938
Vanguard® Real Estate Index 2,047,416 3,753,873
Vanguard® Short-Term Investment Grade 11,307,084 9,739,552
Vanguard® Small Company Growth 6,820,998 9,387,742
Vanguard® Total Bond Market Index 8,187,984 11,121,501
Vanguard® Total International Stock Market Index 11,047,040 8,529,406
Vanguard® Total Stock Market Index 18,291,660 19,160,438
12
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Notes to Financial Statements
4. Change in Units
The change in units outstanding were as follows:
Year Ended December 31, 2025 Year Ended December 31, 2024
Subaccount Units Purchased Units Redeemed and Transferred to/from Net Increase (Decrease) Units Purchased Units Redeemed and Transferred to/from Net Increase (Decrease)
TA S&P 500 Index Initial Class 310,865 (184,567) 126,298 771,810 (209,818) 561,992
Vanguard® Balanced 23,032 (100,165) (77,133) 33,285 (116,015) (82,730)
Vanguard® Capital Growth 32,356 (103,121) (70,765) 37,521 (103,537) (66,016)
Vanguard® Conservative Allocation 82,604 (171,325) (88,721) 89,522 (168,164) (78,642)
Vanguard® Diversified Value 23,727 (84,716) (60,989) 61,250 (93,377) (32,127)
Vanguard® Equity Income 26,841 (51,424) (24,583) 14,321 (57,065) (42,744)
Vanguard® Equity Index 38,091 (88,564) (50,473) 35,325 (80,933) (45,608)
Vanguard® Global Bond Index 112,373 (80,472) 31,901 29,603 (125,738) (96,135)
Vanguard® Growth 64,537 (111,239) (46,702) 94,486 (117,986) (23,500)
Vanguard® High Yield Bond 20,986 (87,341) (66,355) 34,451 (72,388) (37,937)
Vanguard® International 109,411 (161,493) (52,082) 32,177 (191,810) (159,633)
Vanguard® Mid-Cap Index 27,622 (91,393) (63,771) 40,131 (88,180) (48,049)
Vanguard® Moderate Allocation 63,669 (132,028) (68,359) 63,407 (255,101) (191,694)
Vanguard® Money Market 12,924,497 (13,669,627) (745,130) 13,429,755 (11,566,241) 1,863,514
Vanguard® Real Estate Index 9,156 (43,727) (34,571) 23,218 (90,605) (67,387)
Vanguard® Short-Term Investment Grade 394,183 (420,210) (26,027) 429,927 (425,268) 4,659
Vanguard® Small Company Growth 15,545 (64,532) (48,987) 34,785 (79,564) (44,779)
Vanguard® Total Bond Market Index 133,210 (261,782) (128,572) 112,568 (227,989) (115,421)
Vanguard® Total International Stock Market Index 321,085 (284,977) 36,108 154,375 (261,653) (107,278)
Vanguard® Total Stock Market Index 64,203 (199,197) (134,994) 148,727 (238,008) (89,281)
13
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Notes to Financial Statements
4. Change in Unit Dollars (continued)
Year Ended December 31, 2025 Year Ended December 31, 2024
Subaccount Units Purchased in Dollars Units Redeemed and Transferred to/from in Dollars Dollar Net Increase (Decrease) Units Purchased in Dollars Units Redeemed and Transferred to/from in Dollars Dollar Net Increase (Decrease)
TA S&P 500 Index Initial Class $ 4,774,618 $ (2,972,442) $ 1,802,176 $ 10,194,081 $ (2,891,577) $ 7,302,504
Vanguard® Balanced 4,354,061 (18,861,834) (14,507,773) 5,643,669 (19,634,518) (13,990,849)
Vanguard® Capital Growth 4,406,872 (13,331,902) (8,925,030) 4,419,087 (12,023,841) (7,604,754)
Vanguard® Conservative Allocation 3,510,355 (7,327,418) (3,817,063) 3,504,663 (6,648,657) (3,143,994)
Vanguard® Diversified Value 1,740,379 (6,217,147) (4,476,768) 4,179,929 (6,401,950) (2,222,021)
Vanguard® Equity Income 5,002,004 (9,541,002) (4,538,998) 2,439,417 (9,570,866) (7,131,449)
Vanguard® Equity Index 10,093,011 (24,484,101) (14,391,090) 8,347,333 (19,072,569) (10,725,236)
Vanguard® Global Bond Index 2,453,470 (1,738,405) 715,065 613,870 (2,628,583) (2,014,713)
Vanguard® Growth 9,616,282 (17,800,725) (8,184,443) 12,367,998 (15,797,279) (3,429,281)
Vanguard® High Yield Bond 967,106 (4,016,921) (3,049,815) 1,479,827 (3,110,384) (1,630,557)
Vanguard® International 9,888,312 (14,627,452) (4,739,140) 2,526,377 (15,246,144) (12,719,767)
Vanguard® Mid-Cap Index 3,173,897 (10,897,942) (7,724,045) 4,204,610 (9,231,154) (5,026,544)
Vanguard® Moderate Allocation 3,450,403 (7,256,605) (3,806,202) 3,211,035 (12,678,224) (9,467,189)
Vanguard® Money Market 29,110,876 (30,787,565) (1,676,689) 28,934,638 (24,888,867) 4,045,771
Vanguard® Real Estate Index 794,057 (3,694,380) (2,900,323) 1,824,386 (7,342,684) (5,518,298)
Vanguard® Short-Term Investment Grade 9,109,584 (9,628,025) (518,441) 9,302,717 (9,231,535) 71,182
Vanguard® Small Company Growth 2,272,498 (9,250,376) (6,977,878) 4,834,020 (11,040,114) (6,206,094)
Vanguard® Total Bond Market Index 5,606,182 (10,972,696) (5,366,514) 4,553,975 (9,178,892) (4,624,917)
Vanguard® Total International Stock Market Index 10,016,301 (8,487,736) 1,528,565 4,074,343 (6,911,294) (2,836,951)
Vanguard® Total Stock Market Index 6,011,829 (18,757,159) (12,745,330) 12,270,988 (19,914,294) (7,643,306)
14
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Notes to Financial Statements
December 31, 2025
5. Financial Highlights
The Separate Account offers various death benefit options, which have differing fees that are charged against the contract owner's account balance. These charges are discussed in more detail in the individual's policy. Differences in the fee structures for these units result in different unit values, expense ratios, and total returns.
At December 31 For the Year Ended December 31
Unit Fair Value Expense Total Return***
Corresponding to Investment Ratio** Corresponding to
Lowest to Highest Net Income Lowest to Lowest to Highest
Subaccount Units Expense Ratio Assets Ratio* Highest Expense Ratio
TA S&P 500 Index Initial Class
12/31/2025 1,138,036 $17.23 to $17.23 $ 19,602,731 0.96 % 0.27 % to 0.27 % 17.33 % to 17.33 %
12/31/2024 1,011,738 14.68 to 14.68 14,853,406 1.12 0.27 to 0.27 24.48 to 24.48
12/31/2023 449,746 11.79 to 11.79 5,304,063 1.75 0.27 to 0.27 25.75 to 25.75
12/31/2022(1) 123,063 9.38 to 9.38 1,154,141 1.11 0.27 to 0.27 - to -
Vanguard® Balanced
12/31/2025 765,646 208.41 to 208.41 159,570,385 2.12 0.27 to 0.27 16.15 to 16.15
12/31/2024 842,779 179.43 to 179.43 151,223,923 2.32 0.27 to 0.27 14.49 to 14.49
12/31/2023 925,509 156.72 to 156.72 145,049,663 2.08 0.27 to 0.27 14.02 to 14.02
12/31/2022 1,011,389 137.45 to 137.45 139,020,340 1.96 0.27 to 0.27 (14.53) to (14.53)
12/31/2021 1,105,098 160.83 to 160.83 177,729,852 1.80 0.27 to 0.27 18.70 to 18.70
Vanguard® Capital Growth
12/31/2025 663,124 156.18 to 156.18 103,566,068 1.03 0.27 to 0.27 28.63 to 28.63
12/31/2024 733,889 121.42 to 121.42 89,106,294 1.11 0.27 to 0.27 13.10 to 13.10
12/31/2023 799,905 107.35 to 107.35 85,869,932 1.06 0.27 to 0.27 27.64 to 27.64
12/31/2022 822,220 84.11 to 84.11 69,152,957 0.87 0.27 to 0.27 (15.71) to (15.71)
12/31/2021 834,696 99.78 to 99.78 83,288,836 0.94 0.27 to 0.27 21.21 to 21.21
Vanguard® Conservative Allocation
12/31/2025 634,537 45.51 to 45.51 28,876,519 2.63 0.27 to 0.27 12.43 to 12.43
12/31/2024 723,258 40.48 to 40.48 29,276,153 2.78 0.27 to 0.27 7.20 to 7.20
12/31/2023 801,900 37.76 to 37.76 30,279,587 1.98 0.27 to 0.27 12.21 to 12.21
12/31/2022 863,704 33.65 to 33.65 29,065,405 2.59 0.27 to 0.27 (15.13) to (15.13)
12/31/2021 1,043,521 39.65 to 39.65 41,374,567 1.49 0.27 to 0.27 5.70 to 5.70
Vanguard® Diversified Value
12/31/2025 460,940 82.93 to 82.93 38,224,880 1.62 0.27 to 0.27 16.51 to 16.51
12/31/2024 521,929 71.18 to 71.18 37,148,498 1.54 0.27 to 0.27 14.58 to 14.58
12/31/2023 554,056 62.12 to 62.12 34,418,406 1.43 0.27 to 0.27 19.80 to 19.80
12/31/2022 607,088 51.85 to 51.85 31,479,097 1.16 0.27 to 0.27 (11.73) to (11.73)
12/31/2021 631,242 58.74 to 58.74 37,079,761 1.09 0.27 to 0.27 30.11 to 30.11
Vanguard® Equity Income
12/31/2025 379,038 204.80 to 204.80 77,626,103 2.54 0.27 to 0.27 16.48 to 16.48
12/31/2024 403,621 175.82 to 175.82 70,963,627 2.93 0.27 to 0.27 14.81 to 14.81
12/31/2023 446,365 153.14 to 153.14 68,356,199 2.76 0.27 to 0.27 7.81 to 7.81
12/31/2022 510,243 142.05 to 142.05 72,479,592 2.54 0.27 to 0.27 (0.93) to (0.93)
12/31/2021 486,087 143.38 to 143.38 69,695,471 1.95 0.27 to 0.27 24.99 to 24.99
Vanguard® Equity Index
12/31/2025 786,047 307.12 to 307.12 241,410,204 1.07 0.27 to 0.27 17.38 to 17.38
12/31/2024 836,520 261.64 to 261.64 218,864,996 1.29 0.27 to 0.27 24.50 to 24.50
12/31/2023 882,128 210.15 to 210.15 185,376,374 1.42 0.27 to 0.27 25.78 to 25.78
12/31/2022 954,086 167.08 to 167.08 159,409,086 1.35 0.27 to 0.27 (18.45) to (18.45)
12/31/2021 984,590 204.88 to 204.88 201,721,858 1.24 0.27 to 0.27 28.20 to 28.20
Vanguard® Global Bond Index
12/31/2025 516,442 22.29 to 22.29 11,510,018 2.89 0.27 to 0.27 5.41 to 5.41
12/31/2024 484,541 21.14 to 21.14 10,245,063 3.01 0.27 to 0.27 1.76 to 1.76
12/31/2023 580,676 20.78 to 20.78 12,065,766 1.92 0.27 to 0.27 6.23 to 6.23
12/31/2022 628,232 19.56 to 19.56 12,288,191 2.87 0.27 to 0.27 (13.36) to (13.36)
12/31/2021 708,340 22.58 to 22.58 15,991,812 1.78 0.27 to 0.27 (2.10) to (2.10)
15
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Notes to Financial Statements
December 31, 2025
5. Financial Highlights (continued)
At December 31 For the Year Ended December 31
Unit Fair Value Expense Total Return***
Corresponding to Investment Ratio** Corresponding to
Lowest to Highest Net Income Lowest to Lowest to Highest
Subaccount Units Expense Ratio Assets Ratio* Highest Expense Ratio
Vanguard® Growth
12/31/2025 588,058 $176.07 to $176.07 $ 103,540,274 0.20 % 0.27 % to 0.27 % 16.57 % to 16.57 %
12/31/2024 634,760 151.04 to 151.04 95,875,896 0.28 0.27 to 0.27 32.77 to 32.77
12/31/2023 658,260 113.76 to 113.76 74,883,238 0.23 0.27 to 0.27 39.76 to 39.76
12/31/2022 650,536 81.40 to 81.40 52,951,545 - 0.27 to 0.27 (33.54) to (33.54)
12/31/2021 692,363 122.48 to 122.48 84,803,094 0.03 0.27 to 0.27 17.54 to 17.54
Vanguard® High Yield Bond
12/31/2025 511,971 48.52 to 48.52 24,841,036 6.63 0.27 to 0.27 8.89 to 8.89
12/31/2024 578,326 44.56 to 44.56 25,769,781 5.64 0.27 to 0.27 6.16 to 6.16
12/31/2023 616,263 41.97 to 41.97 25,866,947 5.00 0.27 to 0.27 11.37 to 11.37
12/31/2022 667,908 37.69 to 37.69 25,173,412 5.02 0.27 to 0.27 (9.61) to (9.61)
12/31/2021 738,216 41.70 to 41.70 30,780,278 4.40 0.27 to 0.27 3.40 to 3.40
Vanguard® International
12/31/2025 880,091 96.76 to 96.76 85,156,903 0.86 0.27 to 0.27 19.64 to 19.64
12/31/2024 932,173 80.87 to 80.87 75,386,883 1.26 0.27 to 0.27 8.72 to 8.72
12/31/2023 1,091,806 74.39 to 74.39 81,217,924 1.53 0.27 to 0.27 14.35 to 14.35
12/31/2022 1,158,770 65.06 to 65.06 75,384,967 1.35 0.27 to 0.27 (30.31) to (30.31)
12/31/2021 1,246,165 93.35 to 93.35 116,328,421 0.28 0.27 to 0.27 (1.81) to (1.81)
Vanguard® Mid-Cap Index
12/31/2025 482,087 125.19 to 125.19 60,353,077 1.25 0.27 to 0.27 11.24 to 11.24
12/31/2024 545,858 112.54 to 112.54 61,431,734 1.40 0.27 to 0.27 14.76 to 14.76
12/31/2023 593,907 98.06 to 98.06 58,241,066 1.46 0.27 to 0.27 15.52 to 15.52
12/31/2022 667,629 84.89 to 84.89 56,675,166 1.13 0.27 to 0.27 (19.04) to (19.04)
12/31/2021 695,738 104.85 to 104.85 72,950,342 1.09 0.27 to 0.27 24.02 to 24.02
Vanguard® Moderate Allocation
12/31/2025 643,566 59.15 to 59.15 38,063,757 2.40 0.27 to 0.27 15.87 to 15.87
12/31/2024 711,925 51.04 to 51.04 36,339,014 2.52 0.27 to 0.27 10.02 to 10.02
12/31/2023 903,619 46.39 to 46.39 41,921,528 1.95 0.27 to 0.27 15.24 to 15.24
12/31/2022 825,223 40.26 to 40.26 33,221,962 2.42 0.27 to 0.27 (16.15) to (16.15)
12/31/2021 850,906 48.01 to 48.01 40,855,872 1.49 0.27 to 0.27 9.78 to 9.78
Vanguard® Money Market
12/31/2025 34,566,275 2.29 to 2.29 79,324,761 4.11 0.27 to 0.27 3.90 to 3.90
12/31/2024 35,311,405 2.21 to 2.21 77,990,499 5.07 0.27 to 0.27 4.91 to 4.91
12/31/2023 33,447,891 2.11 to 2.11 70,417,879 4.94 0.27 to 0.27 4.77 to 4.77
12/31/2022 34,077,457 2.01 to 2.01 68,475,514 1.51 0.27 to 0.27 1.24 to 1.24
12/31/2021 32,097,830 1.98 to 1.98 63,709,988 0.01 0.27 to 0.27 (0.25) to (0.25)
Vanguard® Real Estate Index
12/31/2025 303,181 87.03 to 87.03 26,385,026 2.81 0.27 to 0.27 2.83 to 2.83
12/31/2024 337,752 84.63 to 84.63 28,584,127 3.31 0.27 to 0.27 4.46 to 4.46
12/31/2023 405,139 81.02 to 81.02 32,823,499 2.52 0.27 to 0.27 11.40 to 11.40
12/31/2022 448,295 72.73 to 72.73 32,603,739 1.91 0.27 to 0.27 (26.49) to (26.49)
12/31/2021 466,499 98.94 to 98.94 46,156,810 1.96 0.27 to 0.27 39.83 to 39.83
Vanguard® Short-Term Investment Grade
12/31/2025 2,395,569 23.76 to 23.76 56,908,655 4.09 0.27 to 0.27 6.57 to 6.57
12/31/2024 2,421,596 22.29 to 22.29 53,982,705 3.46 0.27 to 0.27 4.61 to 4.61
12/31/2023 2,416,937 21.31 to 21.31 51,505,260 2.15 0.27 to 0.27 5.87 to 5.87
12/31/2022 2,623,345 20.13 to 20.13 52,803,017 1.69 0.27 to 0.27 (5.98) to (5.98)
12/31/2021 2,868,190 21.41 to 21.41 61,400,463 2.11 0.27 to 0.27 (0.72) to (0.72)
16
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Notes to Financial Statements
December 31, 2025
5. Financial Highlights (continued)
At December 31 For the Year Ended December 31
Unit Fair Value Expense Total Return***
Corresponding to Investment Ratio** Corresponding to
Lowest to Highest Net Income Lowest to Lowest to Highest
Subaccount Units Expense Ratio Assets Ratio* Highest Expense Ratio
Vanguard® Small Company Growth
12/31/2025 406,453 $153.62 to $153.62 $ 62,438,197 0.49 % 0.27 % to 0.27 % 5.82 % to 5.82 %
12/31/2024 455,440 145.17 to 145.17 66,114,201 0.55 0.27 to 0.27 11.08 to 11.08
12/31/2023 500,219 130.69 to 130.69 65,372,530 0.42 0.27 to 0.27 19.32 to 19.32
12/31/2022 556,357 109.52 to 109.52 60,933,802 0.27 0.27 to 0.27 (25.55) to (25.55)
12/31/2021 590,061 147.12 to 147.12 86,806,956 0.38 0.27 to 0.27 13.91 to 13.91
Vanguard® Total Bond Market Index
12/31/2025 1,761,159 43.27 to 43.27 76,211,086 3.48 0.27 to 0.27 6.65 to 6.65
12/31/2024 1,889,731 40.58 to 40.58 76,676,228 2.81 0.27 to 0.27 0.97 to 0.97
12/31/2023 2,005,152 40.19 to 40.19 80,579,219 2.45 0.27 to 0.27 5.29 to 5.29
12/31/2022 2,192,417 38.17 to 38.17 83,675,086 2.05 0.27 to 0.27 (13.45) to (13.45)
12/31/2021 2,294,096 44.10 to 44.10 101,158,452 2.09 0.27 to 0.27 (1.98) to (1.98)
Vanguard® Total International Stock Market Index
12/31/2025 792,367 34.85 to 34.85 27,617,773 2.88 0.27 to 0.27 31.69 to 31.69
12/31/2024 756,259 26.47 to 26.47 20,016,499 3.10 0.27 to 0.27 4.77 to 4.77
12/31/2023 863,537 25.26 to 25.26 21,815,103 2.85 0.27 to 0.27 15.23 to 15.23
12/31/2022 830,626 21.92 to 21.92 18,209,951 3.55 0.27 to 0.27 (16.24) to (16.24)
12/31/2021 877,916 26.17 to 26.17 22,978,275 1.62 0.27 to 0.27 8.24 to 8.24
Vanguard® Total Stock Market Index
12/31/2025 1,896,211 106.21 to 106.21 201,396,838 1.16 0.27 to 0.27 16.62 to 16.62
12/31/2024 2,031,205 91.08 to 91.08 184,992,329 1.23 0.27 to 0.27 23.38 to 23.38
12/31/2023 2,120,486 73.82 to 73.82 156,530,583 1.15 0.27 to 0.27 25.61 to 25.61
12/31/2022 2,234,107 58.77 to 58.77 131,291,194 1.36 0.27 to 0.27 (19.81) to (19.81)
12/31/2021 2,326,439 73.28 to 73.28 170,487,138 1.19 0.27 to 0.27 25.30 to 25.30
(1) See Footnote 1
* These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the Mutual Fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the Mutual Fund in which the subaccounts invest.
** These amounts represent the annualized contract expenses of the subaccount, consisting primarily of mortality and expense charges, for each period indicated. These ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the Mutual Fund have been excluded.
*** These amounts represent the total return for the periods indicated, including changes in the value of the Mutual Fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. Total returns reflect a full twelve month period and total returns for subaccounts opened during the year have not been disclosed as they may not be indicative of a full year return. Expense ratios not in effect for the full twelve months are not reflected in the total return as they may not be indicative of a full year return.
17
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Notes to Financial Statements
December 31, 2025
6. Administrative and Mortality and Expense Risk Charges
TFLIC deducts a daily administrative charge equal to an annual rate of 0.10% of the daily net assets value of each subaccount for administrative expenses. TFLIC also deducts an annual charge during the accumulation phase, not to exceed $25, proportionately from the subaccounts' unit values. An annual charge of 0.17% is deducted (based on the death benefit selected) from the unit values of the subaccounts of the Separate Account for TFLIC's assumption of certain mortality and expense risks incurred in connection with the contract. The charge is assessed daily based on the net asset value of the Mutual Fund. Charges for administrative and mortality and expense risk are an expense of the subaccount. Charges reflected above are those currently assessed and may be subject to change. Contract owners should see their actual policy and any related attachments to determine their specific charges.
7. Income Tax
Operations of the Separate Account form a part of TFLIC, which is taxed as a life insurance company under Subchapter L of the Internal Revenue Code of 1986, as amended (the Code). The operations of the Separate Account are accounted for separately from other operations of TFLIC for purposes of federal income taxation. The Separate Account is not separately taxable as a regulated investment company under Subchapter M of the Code and is not otherwise taxable as an entity separate from TFLIC. Under existing federal income tax laws, the income of the Separate Account is not taxable to TFLIC, as long as earnings are credited under the variable annuity contracts.
18
Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Notes to Financial Statements
December 31, 2025
8. Subsequent Events
The Separate Account has evaluated the financial statements for subsequent events through the date which the financial statements were issued. During this period, there were no subsequent events requiring recognition in the financial statements.
9. Related Parties
Transamerica Capital, Inc. (TCI), a wholesaling broker-dealer, is an affiliated entity of TFLIC and an indirect wholly owned subsidiary of Aegon Ltd. TCI distributes TFLIC's products through broker-dealers and other financial intermediaries.
The subaccounts invest in the mutual funds listed in Footnote 1. These investments include funds managed by Transamerica Asset Management, Inc. (TAM). Transamerica Fund Services, Inc. (TFS) serves as a transfer agent to TAM, and Aegon USA Asset Management Holding, LLC (AAM) serves as a sub-advisor for certain funds managed by TAM. TAM, TFS and AAM are affiliated entities of TFLIC and indirect wholly owned subsidiaries of Aegon Ltd. Funds managed by TAM are identified by their fund name, which includes reference to Aegon, Transamerica or both. The Separate Account pays management fees to the related funds as detailed in the fund prospectus.
No charges other than those disclosed in Footnote 6 are deducted for the service rendered by related parties.
Contract owners may transfer funds between available subaccount options within the Separate Account. These transfers are performed at unit value at the time of the transfer.
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Transamerica Financial Life Insurance Company
TFLIC Separate Account B
Notes to Financial Statements
December 31, 2025
10. Segment Reporting
Each fund of the Separate Account constitutes a single operating segment and therefore, a single reportable segment because the Chief Operating Decision Maker (CODM) manages the activities of the Separate Account using information of each fund. The Separate Account is engaged in a single line of business as a registered unit investment trust. The Separate Account is a funding vehicle for individual variable annuity contracts with the assets owned by TFLIC to support the liabilities of the applicable insurance contracts. The subaccounts have identified the President and Chief Operating Officer as the CODM as the Separate Account does not have employees and is not a separate legal entity.
The CODM uses increase (decrease) in net assets from operations as their performance measure in order to make operational decisions while monitoring the net assets of each of the funds within the Separate Account. The Accounting policies used to measure profit and loss of the segments are the same as those described in the Summary of Significant Accounting Policies (see note 2). The measure of segment assets is reported on the balance sheet as total consolidated assets. Refer to the Statements of Operations and Changes in Net Assets for each fund's operating segment and related footnotes for significant expenses principle and the existing segment requirements as of December 31, 2025 and for the year ended December 31, 2025 and December 31, 2024.
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