TRANSAMERICA VARIABLE INSURANCE FUND, INC.
Growth Portfolio
Money Market Portfolio
Annual report year ending
December 31, 1999
DIRECTORS
Gary U. Rolle, Chairman
Dr. James H. Garrity
Peter J. Sodini
Jon C. Strauss
OFFICERS
Gary U. Rolle, President
William T. Miller, Treasurer and Assistant Secretary
Regina M. Fink, Secretary
Thomas M. Adams, Assistant Secretary
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
INDEPENDENT AUDITORS
Ernst & Young LLP
725 South Figueroa Street
Los Angeles, California 90017
<PAGE>
TRANSAMERICA VIF GROWTH PORTFOLIO
PORTFOLIO MANAGER: JEFFREY S. VAN HARTE
MANAGER'S COMMENTS - GROWTH PORTFOLIO
DECEMBER 31, 1999
FUND PERFORMANCE
The Transamerica VIF Growth Portfolio total return of 37.79% for 1999 marked the
ninth straight year that the Fund has outperformed the S&P 500. For 1999, the
S&P 500 Returned 21.04%. For the last 10 years, the Portfolio has earned an
annualized total return of 26.79%, while the S&P 500 has returned 18.21%.
PORTFOLIO MANAGER COMMENTS
Our recent research has driven us toward the world of wireless communications
and optical component suppliers to the Internet. We believe that the demand for
wireless data services and increased bandwidth on the Internet are in their
infant stages. Consistent with our long-term investment approach, we look for
the emerging leaders.
Two new additions to our wireless investments were Qualcomm and RF Micro
Devices. Qualcomm is the leader in CDMA (Code Division Multiple Access) wireless
technology, a technology standard we believe will prevail as the dominant
wireless technology. RF Micro Devices is the leading provider of integrated
circuits that enable rapid wireless data applications. We also added JDS
Uniphase to the Portfolio this year. By virtue of the merger of JDS Fitel with
Uniphase, the company is now the dominant provider of optical components used in
fiber optic systems.
PORTFOLIO ASSET MIX
Common Stock 99.1%
Cash and Cash Equivalents 0.9%
GOING FORWARD
We continue to hold a long-term bullish outlook on the stock market because of
the rapid technological innovation driving the economy. We believe that this
innovation will continue to keep productivity high and inflation and interest
rates low. We are interested in owning the dominant "creators" and "deployers"
of technology. Companies that have learned to create or deploy technology to
their benefit often garner tremendous competitive advantage. They are
"masterpieces," and we believe that investments in masterpieces are the key to
long-term wealth accumulation and superior investment performance.
Thank you for your continued investment in the Transamerica VIF Growth
Portfolio.
<PAGE>
GROWTH PORTFOLIO - SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
COMMON STOCKS-- 99.1%
Broadcasting-- 4.1%
Clear Channel Communications, Inc.a 110,000 $ 9,817,500
Business Services-- 4.1%
First Data Corporation 198,000 9,763,875
Chemicals-- 1.8%
Minerals Technologies, Inc. 105,000 4,206,563
Commercial Services-- 2.2%
Sodexho Marriott Services, Inc. 400,000 5,200,000
Communication Services-- 6.5%
Qwest Communications International, Inc.a 185,000 7,955,000
VeriSign, Inc. a 40,000 7,637,500
15,592,500
Computers & Business Equipment-- 15.8%
Cisco Systems, Inc. a 100,000 10,712,500
Dell Computer Corporation a 250,000 12,750,000
EMC Corporation a 130,000 14,202,500
37,665,000
Containers & Packaging-- 2.3%
Sealed Air Corporation a 105,000 5,440,313
Drugs & Health Care-- 2.4%
KeraVision, Inc. a 70,000 428,750
Merck & Company, Inc. 80,000 5,365,000
5,793,750
Electronics-- 14.8%
Agilent Technologies, Inc. a 130,000 10,050,625
Applied Materials, Inc. a 90,000 11,401,875
Intel Corporation 100,000 8,231,250
QLogic Corporation a 35,000 5,595,625
35,279,375
Financial Services-- 6.0%
Charles Schwab Corporation 250,000 9,593,750
Knight/Trimark Group, Inc. a 100,000 4,600,000
14,193,750
Hotels & Restaurants-- 2.5%
McDonald's Corporation 150,000 6,046,875
Retail-- 3.4%
Gap, Inc. 175,000 8,050,000
Retail Grocery-- 5.6%
Kroger Company a 400,000 7,550,000
Safeway, Inc. a 165,000 5,867,813
13,417,813
Software-- 7.5%
IMS Health, Inc. 275,000 $ 7,476,562
Microsoft Corporation a 90,000 10,507,500
17,984,062
Telecommunications-- 4.7%
JDS Uniphase Corporation a 70,000 11,291,875
Telecommunications Equipment-- 12.4%
QUALCOMM, Inc. 100,000 17,612,500
RF Micro Devices, Inc. a 85,000 5,817,187
Vodafone AirTouch PLC ADRb 125,000 6,187,500
29,617,187
Trucking & Freight Forwarding-- 3.0%
United Parcel Service, Inc. 105,000 7,245,000
Total Common Stocks
(cost $130,139,785) 236,605,438
REPURCHASE AGREEMENT -- 0.9%
State Street Bank and Trust
Company, 2.50%, due
01/03/00, (collateralized
by $1,700,000 par value U.S.
Treasury Bond, 8.875%,
due 08/15/17, with a
value of $2,114,375, cost $2,070,000) $2,070,000 2,070,000
Total Investments-- 100.0%
(cost $132,209,785)* 238,675,438
Liabilities in Excess of Other Assets-- 0.0% (20,212)
Net Assets - 100.0% $ 238,655,226
a Non-income producing security
b ADR -- American Depository Receipts
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value
over tax cost and aggregate gross unrealized depreciation for all
securities in which there is an excess of tax cost over value were
$115,176,103 and $8,710,450, respectively. Net unrealized appreciation
for tax purposes is $106,465,653.
<PAGE>
TRANSAMERICA VIF MONEY MARKET PORTFOLIO
PORTFOLIO MANAGER: EDWARD S. HAN
CO-MANAGER: HEIDI Y. HU
FUND PERFORMANCE
The Transamerica VIF Money Market Portfolio continued to deliver good
performance in 1999. The Fund's annualized yield (12-month return) as of
December 31, 1999 was 4.62% in comparison to the IBC Money Fund Report return of
4.57%. The seven-day current and effective yields were 4.92% and 5.04%
respectively, as of December 31, 1999. The Fund's annualized return since
inception in January 1998 is 4.78%.
PORTFOLIO MANAGER COMMENTS
The Fund's objective is to provide liquidity, preservation of capital, and
current income. Despite a challenging interest rate environment caused by a
strong U.S. economy, the Fund continued to perform well relative to its peer
group. Strong consumer demand, tight labor markets, record highs in the U.S.
equity markets, and the global economic upswing raised bond market concerns that
the domestic economy was overheating and higher inflation would be imminent. The
Federal Reserve remained watchful of inflationary pressures and raised the
federal funds target rate three times in 1999, effectively undoing the three
easings made between September and November of 1998. To this end, we actively
managed the Fund's maturity in anticipation of the actions taken by the Federal
Reserve, and were able to generate outperformance for our investors.
PORTFOLIO ASSET MIX
Commercial Paper 100.0%
GOING FORWARD
The continued strength of the U.S. economy is likely to merit further interest
rate tightening by the Federal Reserve in the first half of 2000. We expect
vigilant Federal Reserve action coupled with the rate increases of 1999 to slow
consumer spending and result in more moderate economic growth in 2000. We will
continue to invest in high quality companies and to manage the Fund to maximize
safety, liquidity and yield.
Thank you for your continued investment in the Transamerica VIF Money Market
Portfolio.
<PAGE>
MONEY MARKET PORTFOLIO - SCHEDULE OF INVESTMENTS
DECEMBER 31, 1999
COMMERCIAL PAPER - DOMESTIC-- 71.9%
Banking-- 1.6%
J.P. Morgan & Company, Inc.
5.420% 01/20/00 $ 280,000 $ 279,199
Commercial Financial Services-- 18.5%
Associates Corporation of North America
3.500% 01/03/00 800,000 799,844
General Electric Capital Corporation
6.550% 01/25/00 645,000 642,184
IBM Credit Corporation
4.000% 01/06/00 1,000,000 999,444
John Deere Finance Ltd.
6.000% 01/07/00 800,000 799,200
3,240,672
Consumer Financial Services-- 14.8%
Ford Motor Credit Company
5.980% 01/03/00 800,000 799,734
Toyota Motor Credit Corporation
5.950% 01/24/00 800,000 796,959
USAA Capital Corporation
4.500% 01/11/00 1,000,000 998,750
2,595,443
Electric Utilities-- 5.7%
Duke Energy Corporation
4.500% 01/05/00 1,000,000 999,500
Electronics-- 4.6%
Motorola, Inc.
5.000% 01/05/00 800,000 799,556
Financial Services-- 2.9%
Merrill Lynch & Company, Inc.
5.550% 01/24/00 500,000 498,227
Oil-- 8.9%
Chevron Corporation
3.500% 01/03/00 800,000 799,845
Exxon Capital Corporation
6.350% 01/04/00 750,000 749,603
1,549,448
Paper & Forest Products-- 5.7%
Kimberly-Clark Corporation
4.750% 01/06/00 1,000,000 999,340
Photography -- 2.9%
Eastman Kodak Company
5.150% 01/20/00 $ 500,000 $ 498,641
Retail-- 5.1%
Wal-Mart Stores, Inc.
5.250% 01/06/00 900,000 899,344
Telecommunications-- 1.2%
AT&T Corporation
5.000% 01/14/00 210,000 209,621
Total Commercial Paper - Domestic
(amortized cost $12,568,991) 12,568,991
COMMERCIAL PAPER - FOREIGN-- 7.7%
Banking -- 7.7%
Inter-American Development Bank
4.800% 01/10/00 500,000 499,275
Toronto Dominion Holdings
5.750% 01/10/00 850,000 848,778
Total Commercial Paper - Foreign
(amortized cost $1,348,053) 1,348,053
U.S. GOVERNMENT AGENCY SECURITIES-- 10.3%
Federal Home Loan Bank
5.800% 01/11/00 800,000 798,711
Federal Home Loan Mortgage Corporation
4.300% 01/10/00 1,000,000 998,925
Total U.S. Government Agency Securities
(amortized cost $1,797,636) 1,797,636
REPURCHASE AGREEMENT-- 17.3%
State Street Bank and Trust Company,
2.50%, due 01/03/00, (collateralized
by $3,035,000 par value U.S. Treasury
Note, 6.375%, due 03/31/01, with a
value of $3,088,113, cost $3,024,000) 3,024,000 3,024,000
Total Investments-- 107.2%
(amortized cost $18,738,680) 18,738,680
Liabilities in Excess of Other Assets-- (7.2)% (1,259,877)
Net Assets - 100.0% $17,478,803
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
GROWTH MONEY MARKET
PORTFOLIO PORTFOLIO
Assets
Investments, at cost $ 132,209,785 $ 18,738,680
Investments, at value $ 238,675,438 $ 18,738,680
Cash 134 127
Receivables:
Fund shares sold 165,819 24,651
Dividends and interest 71,991 210
Reimbursement from Adviser 5,968 10,542
Other assets 1,346 71
238,930,696 18,774,281
Liabilities
Payables:
Fund shares redeemed 72,714 1,277,169
Advisory fees 136,242 4,567
Directors fees 1,117 7
Other accrued expenses 65,397 13,735
275,470 1,295,478
Total Net Assets $ 238,655,226 $ 17,478,803
Net Assets Consist Of
Paid in capital $ 134,114,179 $ 17,478,803
Accumulated net realized loss on investments (1,924,606) -
Net unrealized appreciation of investments 106,465,653 -
Total Net Assets $ 238,655,226 $ 17,478,803
Shares Outstanding 8,969,904 17,478,803
Net Asset Value Per Share $ 26.61 $ 1.00
<PAGE>
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1999
GROWTH MONEY MARKET
PORTFOLIO PORTFOLIO
Investment Income
Interest income $ 244,903 $ 617,706
Dividend income 324,692* -
Total Income 569,595 617,706
Expenses
Investment Adviser fee 1,198,158 41,050
Administration fees 89,195 50,058
Custodian fees 64,883 46,712
Audit fees 40,555 3,158
Transfer Agent fees 26,096 21,952
Printing expenses 12,390 500
Directors' fees 4,728 272
Other expenses 6,150 2,021
Total expenses before waiver and reimbursement
1,442,155 165,723
Reimbursed expenses and waived fees
(84,243) (95,245)
Net Expenses 1,357,912 70,478
Net Investment Income (Loss) (788,317) 547,228
Net Realized and Unrealized Gain (Loss) on Investments Net realized loss on
investments (1,924,606) - Net change in unrealized appreciation of investments
61,657,926 -
Net Realized and Unrealized Gain (Loss) on Investments
59,733,320 -
Net Increase in Net Assets Resulting From Operations
$ 58,945,003 $ 547,228
* Net of foreign withholding taxes, the amount that was withheld in the Growth
Portfolio was $1,469.
<PAGE>
<TABLE>
<CAPTION>
GROWTH PORTFOLIO - STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
Increase in Net Assets
Operations
<S> <C> <C>
Net investment loss $ (788,317) $ (223,391)
Net realized gain (loss) on investments
(1,924,606) 7,971,054
Net change in unrealized appreciation of investments
61,657,926 18,232,158
Net increase in net assets resulting from operations
58,945,003 25,979,821
Dividends and Distributions to Shareholders
Net realized gains (506,836) (8,918,631)
Fund Share Transactions (Note 3) 72,324,880 44,452,582
Net Increase in Net Assets 130,763,047 61,513,772
Net Assets
Beginning of period 107,892,179 46,378,407
End of period $ 238,655,226 $ 107,892,179
<PAGE>
MONEY MARKET PORTFOLIO - STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998*
Increase in Net Assets
Operations
Net investment income $ 547,228 $ 161,269
Net realized gain on investments - -
Net change in unrealized appreciation of investments
- -
Net increase in net assets resulting from operations 547,228 161,269
Dividends and Distributions to Shareholders
Net investment income (547,228) (161,269)
Fund Share Transactions (Note 3) 10,675,749 6,803,054
Net Increase in Net Assets 10,675,749 6,803,054
Net Assets
Beginning of period 6,803,054 -
End of period $ 17,478,803 $ 6,803,054
* The Portfolio commenced operations on January 2, 1998.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GROWTH PORTFOLIO - FINANCIAL HIGHLIGHTS
YEAR ENDED DECEMBER 31,
1999 1998 1997 1996 1995
Net Asset Value
<S> <C> <C> <C> <C> <C>
Beginning of period $19.360 $14.750 $10.930 $8.582 $5.615
Operations
Net investment loss (0.088) (0.013) (0.050) (0.065) (0.069)
Net realized and unrealized gain
7.395 6.380 5.130 2.413 3.036
Total from investment operations
7.307 6.367 5.080 2.348 2.967
Dividends/Distributions to Shareholders
Net realized gains
(0.057) (1.757) (1.260) - -
Net Asset Value
End of period $ 26.610 $ 19.360 $ 14.750 $ 10.930 $ 8.582
Total Return 37.79% 43.28% 46.50% 27.36% 52.84%
Ratios and Supplemental Data
Expenses to average net assets1
0.85% 0.85% 0.85% 1.27% 1.41%
Net investment loss to average net assets2
(0.49%) (0.32%) (0.39%) (0.68%) (0.94%)
Portfolio turnover rate
28.79% 34.41% 20.54% 34.58% 18.11%
Net assets, end of period (in thousands)
$238,655 $107,892 $46,378 $32,238 $25,738
</TABLE>
* Prior to November 1, 1996, activity represents accumulated unit values of the
Transamerica Occidental's Separate Account Fund C which have been converted to
share values for presentation purposes. 1 If the Investment Adviser had not
waived expenses, the ratio of operating expenses to average net assets would
have been 0.90%, 0.96%, 0.98% and 1.34% for the years ended December 31, 1999,
1998, 1997 and 1996, respectively.
2 If the Investment Adviser had not waived expenses, the ratio of net investment
loss to average net assets would have been (0.55%), (0.44%), (0.52%) and (0.75%)
for the years ended December 31, 1999, 1998, 1997 and 1996, respectively.
<PAGE>
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO - FINANCIAL HIGHLIGHTS
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998*
Net Assets Value
<S> <C> <C>
Beginning of period $ 1.000 $ 1.000
Operations:
Net investment income 0.045 0.048
Dividends/Distributions to Shareholders
Net investment income (0.045) (0.048)
Net Asset Value
End of period $1.000 $ 1.000
Total Return 4.62% 4.93%a
Ratios and Supplemental Data:
Expenses to average net assets1 0.60% 0.60%3
Net investment income to average net assets2 4.59% 4.81%3
Net assets, end of period (in thousands) $ 17,479 $ 6,803
</TABLE>
* The Portfolio commenced operations on January 2, 1998.
a Total return is not annualized for periods less than one year.
1 If the Investment Adviser had not waived expenses, the ratio of operating
expenses to average net assets would have been 1.39% and 3.03% for the period
ended December 31, 1999 and December 31, 1998, respectively.
2 If the Investment Adviser had not waived expenses, the ratio of net investment
income to average net assets would have been 3.79% and 2.38% for the period
ended December 31, 1999 and December 31, 1998, respectively.
3 Annualized.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Transamerica Variable Insurance Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as an open-end management investment company. The
Fund was established as a Maryland Corporation on June 23, 1995. The Fund
currently consists of two investment portfolios, the Growth Portfolio and the
Money Market Portfolio (the "Portfolios"). The Growth Portfolio's investment
objective is long-term capital growth and the Money Market Portfolio's
investment objective is to maximize current income.
The Growth Portfolio is the successor to Transamerica Occidental's Separate
Account Fund C (the "Separate Account") which was organized as an open-end
diversified management investment company. On November 1, 1996, all investments
held by the Separate Account, with a fair value of $29,567,077 and a cost basis
of $15,661,836, were transferred to the Growth Portfolio of the Fund. In
exchange for these investments, the Separate Account received all of the
outstanding shares (2,956,116) of the Growth Portfolio. This transaction was
accounted for in a manner similar to a pooling of interests. Thereafter, the
Separate Account's only investment is shares of the Growth Portfolio. Effective
October 31, 1996, the net asset value of the Growth Portfolio was re-priced at
$10 per unit. All previous accumulation unit values of the Separate Account have
been restated for presentation purposes to account for this change. The Money
Market Portfolio commenced operations on January 2, 1998.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements:
(A) VALUATION OF SECURITIES
Equity securities traded on a national exchange, NASDAQ and over-the-counter
securities are valued at the last sale price. Securities for which market
quotations are not readily available are valued at fair value as determined in
good faith pursuant to procedures established by the Fund's Board of Directors.
Debt securities with a maturity of 60 days or less, and all investments in the
Money Market Portfolio are valued at amortized cost, which approximates market
value.
(B) REPURCHASE AGREEMENTS
The Portfolios may enter into repurchase agreements with Federal Reserve System
member banks or U.S. securities dealers. A repurchase agreement occurs when the
Portfolios purchase an interest-bearing debt obligation and the seller agrees to
repurchase the debt obligation on a specified date in the future at an
agreed-upon price. If the seller is unable to make a timely repurchase, the
Portfolio's expected proceeds could be delayed, or the Portfolio could suffer a
loss in principal or current interest, or incur costs in liquidating the
collateral.
(C) SECURITIES TRANSACTIONS AND INVESTMENT INCOME
Securities transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date and interest income is recorded daily on an
accrual basis. Realized gains and losses on investments are determined using the
identified cost method for both financial statement and Federal income tax
purposes. The aggregate cost of securities purchased (excluding short-term
investments) and proceeds from sales for the Growth Portfolio were $115,978,442
and $44,964,262 respectively, for the year ended December 31, 1999.
(D) DIVIDENDS AND DISTRIBUTIONS
The Growth Portfolio declares and distributes dividends from net investment
income and net realized capital gains, if any, at least annually. The Money
Market Portfolio declares dividends daily and pays such dividends monthly. Net
realized capital gains, if any, are distributed at least annually. All
distributions are paid in shares of the relevant Portfolio at net asset value.
(E) FEDERAL INCOME TAXES
The Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income to its shareholders. Therefore, no federal income tax provision
is required. On December 15, 1999, the Growth Portfolio paid a capital gain
distribution of $506,836.
Net investment income distributions and capital gains distributions are
determined in accordance with income tax regulations that may differ from
generally accepted accounting principles. These differences are due to differing
treatments for items such as deferral of wash sales, net operating losses and
capital loss carry-forwards. For the year ended December 31, 1999, the Growth
Portfolio increased undistributed net investment income by $788,317 and
decreased paid in capital by $788,317. As of December 31, 1999 for Federal
income tax purposes, the Growth Portfolio had a capital loss carry-forward of
$1,924,606 expiring in 2007.
(F) USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities at the date of financial
statements and the reported amounts of revenue and expenses during the period.
Actual results could differ from those estimates.
2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund has entered into an Investment Advisory Agreement with Transamerica
Investment Management, LLC (the "Adviser"), an indirect subsidiary of
Transamerica Corporation, a subsidiary of AEGON, NV. During 1999, Transamerica
Corporation was acquired by AEGON N.V., a holding company organized under the
laws of the Netherlands. For its services to the Growth Portfolio, the Adviser
receives an annual advisory fee of 0.75% of the average daily net assets of the
Portfolio. For its services to the Money Market Portfolio, the Adviser receives
an annual advisory fee of 0.35% of the average daily net assets of the
Portfolio.
The Adviser has contracted with Transamerica Investment Services, Inc., a
wholly-owned subsidiary of Transamerica Corporation to provide investment
research and other information and services to the Portfolios. Transamerica
Investment Services receives its fee directly from the Adviser, and receives no
compensation from the Portfolios. The Adviser, at its discretion, has agreed to
waive its fee and assume any other operating expenses (other than certain
extraordinary or non-recurring expenses) of the Growth and Money Market
Portfolios which exceed 0.85% and 0.60%, respectively, of the average daily net
assets of the Portfolios.
No officer, director, or employee of the Adviser or any of their respective
affiliates receives any compensation from the Fund for acting as director or
officer of the Company. Each director of the Company who is not an "interested
person" (as that term is defined in the 1940 Act) receives from the Fund a $500
annual fee, and $250 for each meeting of the Company's Board attended, and is
reimbursed for expenses incurred in connection with such attendance. For the
year ended December 31, 1999, the Fund expensed aggregate fees of $5,000 to all
directors who are not affiliated persons of the Adviser.
3. CAPITAL STOCK TRANSACTIONS
The Fund has one billion shares of $0.001 par value stock authorized. As of
December 31, 1999, the Growth Portfolio was authorized to issue one hundred
million shares.
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998
GROWTH PORTFOLIO SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
Capital stock sold 4,242,531 $90,830,811 2,397,169 $43,159,237
Capital stock issued upon
reinvestment of dividends
and distributions 22,028 506,859 464,996 8,918,618
Capital stock redeemed (868,305) (19,012,790) (432,728) (7,625,273)
Net increase 3,396,254 $72,324,880 2,429,437 $44,452,582
As of December 31,1999, the Money Market Portfolio was authorized to issue one
hundred million shares.
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1999 DECEMBER 31, 1998*
MONEY MARKET PORTFOLIO SHARES AMOUNT SHARES AMOUNT
Capital stock sold 149,428,213 $149,428,213 9,566,932 $ 9,566,932
Capital stock issued upon
reinvestment of dividends
and distributions 547,242 547,242 161,266 161,266
Capital stock redeemed (139,299,706) (139,299,706) (2,925,144) (2,925,144)
Net increase 10,675,749 $ 10,675,749 6,803,054 $ 6,803,054
* Portfolio commenced operations on January 2, 1998.
</TABLE>
<PAGE>
REPORT OF INDEPENDENT AUDITORS
To The Shareholders and Board of Directors of Transamerica Variable Insurance
Fund, Inc.,
We have audited the accompanying statements of assets and liabilities, including
the schedule of investments, of Transamerica Variable Insurance Fund, Inc.
(comprising respectively, the Growth Portfolio and Money Market Portfolio) (the
"Funds") as of December 31, 1999, and the related statements of operations,
changes in net assets, and financial highlights for each of the fiscal periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of December 31, 1999, by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective portfolios constituting Transamerica Variable Insurance Fund,
Inc. as of December 31, 1999, and the results of their operations, the changes
in their net assets and their financial highlights for each of the fiscal
periods indicated therein, in conformity with accounting principles generally
accepted in the United States.
/s/ Ernst & Young LLP
Los Angeles, California
January 31, 2000
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