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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 12
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SIGNATURE MARY ANN CLARK
TITLE FUND ADMINISTRATOR
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[DESCRIPTION]REPORT OF INDEPENDENT AUDITORS
February 10, 1999
To the Board of Directors of
Transamerica Variable Insurance Fund, Inc.
In planning and performing our audit of the financial statements
Transamerica Variable Insurance Fund, Inc., (comprising respectively,
the Growth Portfolio and Money Market Portfolio) (the "Funds") for the
year ended December 31,1998, we considered its internal control,
including control activities for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the requirements
of Form N-SAR, and not to provide assurance on the internal control.
The management of Transamerica Variable Insurance Fund, Inc. is
responsible for establishing and maintaining internal control. In
fulfilling this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to
the entity's objective of preparing financial statements for external
purposes that are fairly presented in conformity with generally
accepted accounting principles. Those controls include the
safeguarding of assets against unauthorized acquisition, use or
disposition.
Because of inherent limitations in internal control, errors or fraud
may occur and not be detected. Also, projection of any evaluation of
internal control to future periods is subject to the risk that it may
become inadequate because of the changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control would not necessarily
disclose all matters in the internal control that might be material
weaknesses under standards established by the American Institute of
Certified Public Accountants. A material weakness is a condition in
which the design or operation of one or more of the specific
internal control components does not reduce to a relatively low
level the risk that errors or fraud in amounts that would be
material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. However, we
noted no matters involving the internal control and its operation,
including controls for safeguarding securities, that we consider to be
material weaknesses as defined above at December 31, 1998.
This report is intended solely for the information and use of the Board
of Directors and management of Transamerica Variable Insurance Fund,
Inc. and the Securities and Exchange Commission.
ERNST & YOUNG LLP
