33 of direct response marketing channels, including mail, phone,  digital, direct response TV, and point-of-sale.  Transamerica Agency Group includes Transamerica Agency  Network (comprising Independent Group and Transamerica Agency  Network), Career Agency, Transamerica Senior Markets,  Edgewood Financial Network and several independent marketing  organizations. This group provides life insurance and  supplemental health insurance products, as well as marketing  services to closely-tied distribution groups serving the middle  income and small business markets. Transamerica Brokerage offers life and long-term care  insurance products and services through independent brokerage  distributors and financial institutions to high-net-worth, affluent,  emerging affluent and middle income individuals, families and  businesses. These products are designed for family protection,  business needs, and estate and legacy planning. Transamerica Employee Benefits (TEB) offers life and  supplemental health insurance products through employers,  labor unions and trade associations. TEB’s comprehensive  portfolio includes universal life, whole life and term life  insurance, as well as accident, critical illness, cancer, hospital  indemnity, medical expense indemnity, short-term disability, and  dental policies. Some of these products provide insureds with  lump sum or specified income payments when hospitalized,  disabled or diagnosed with a critical illness. Others pay  benefits for specific medical expenses and treatments, or cover  deductibles, co-payments and coinsurance amounts not covered  by other health insurance. In addition, TEB offers stop loss  insurance to employers to protect against catastrophic losses  under self-funded health plans. Transamerica Financial Advisors, Inc. (TFA) is a full service,  Financial Industry Regulatory Authority (FINRA) registered  independent broker-dealer and Securities and Exchange  Commission (SEC) Registered Investment Adviser with  approximately 5,000 Registered Representatives. TFA helps  clients create, grow and protect wealth through a range of  financial products and services. Through its insurance companies, broker-dealers and investment  advisors, Aegon USA offers a wide range of savings and  retirement products and services, including mutual funds and  variable and fixed annuities. The Individual Savings & Retirement  (IS&R) division administers and distributes these products  through a variety of channels, including wirehouse firms, banks,  regional broker dealers, independent financial planners, and  direct to consumer.  The account value of variable annuities reflects the performance  of the underlying funds. Aegon USA earns mortality and expense  Premiums paid on variable annuity contracts are invested in  underlying funds chosen by the policyholder, including bond  and equity funds, and types of asset-allocation funds. A fixed  interest account is available on most products and the underlying  funds are selected by a policyholder, within certain boundaries,  based on the policyholder’s preferred level of risk. The assets  and liabilities related to this product are legally segregated in  separate accounts of the insurance company for the benefit  of variable annuity policyholders. These separate accounts  are classified as investments for the account of policyholders  on Aegon’s statement of financial position. Variable annuity  contracts contain riders, such as guaranteed minimum death,  maturity, withdrawal, accumulation or income benefits. Variable annuities are sold to individuals and retirement plans  in the United States. Variable annuities allow policyholders to  accumulate assets for retirement on a tax-deferred basis, and  to participate in equity or bond market performance. Variable  annuities allow policyholders to select payout options designed  to help meet the policyholders need for income upon maturity,  including lump sum payment, or income for a fixed period or  life. Variable annuities have a maturity date at which benefits  must be used or the contract surrendered. Commonly this date  corresponds to the annuitant's age, with a maximum age of  99 years.  Transamerica is a sub-advised or “manager of managers” fund  platform. Fund managers can include those affiliated with  Transamerica. Aegon USA earns investment management fees on  investment products managed by unaffiliated sub-advisors and  also earns direct investment management fees through affiliated  managers acting as sub-advisors. The operations in the United States provide the fund managers  with oversight for the Transamerica mutual funds. Aegon USA  selects, manages, and retains affiliated and non-affiliated  managers from a variety of investment firms based on a number  of qualitative and quantitative factors. Aegon USA’s operations provide various investment products and  administrative services, individual and group variable annuities,  mutual funds, collective investment trusts, and asset allocation  services. Aegon USA’s fee-based business comprises asset management  and insurance products that generate fee income by providing  investment management, administrative or risk transfer services.  Generally, fee income is sensitive to withdrawals and equity  market movements. Products Agency Brokerage Mutual funds  Worksite Variable annuities Broker-dealer Individual Savings & Retirement