<PAGE>
Page 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 11-K
( X ) Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
Commission file Nos. 2-83724, 33-12324,
33-38267 and 33-55587
_____________________
For the Fiscal Year Ended December 31, 1996
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
(Full Title of the Plan)
TRANSAMERICA CORPORATION
600 Montgomery Street
San Francisco, California 94111
(Name of Issuer of the Securities Held
Pursuant to the Plan and the Address
of its Principal Executive Office)
<PAGE>
Page 2
Required information:
(a) Financial statements filed as a part of this report:
Report of Ernst & Young LLP, Independent Auditors
Statement of Net Assets Available for Plan Benefits
December 31, 1996 and 1995
Statement of Changes in Net Assets Available for Plan
Benefits - Years ended December 31, 1996, 1995
and 1994
Notes to Financial Statements - December 31, 1996
(b) Exhibit filed as a part of this report:
23.1 Consent of Ernst & Young LLP to the incorporation
by reference of their report dated March 21, 1997
in Transamerica Corporation's Registration
Statements on Form S-8 (File Nos. 2-83724,
33-12324, 33-38267 and 33-55587).
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Administration Committee of the Plan has duly caused this annual
report to be signed on its behalf by the undersigned thereunto
duly authorized.
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
(Name of Plan)
Burton E. Broome
Vice President and Controller
Transamerica Corporation
For the Transamerica Corporation Employees Stock
Savings Plan Administration Committee
Date: March 27, 1997
<PAGE>
Page 3
FINANCIAL STATEMENTS
For
ANNUAL REPORT ON FORM 11-K
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
Year Ended December 31, 1996
<PAGE>
Page 4
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Board of Directors
Transamerica Corporation
San Francisco, California
We have audited the accompanying statements of net assets available for plan
benefits of Transamerica Corporation Employees Stock Savings Plan (the Plan)
as of December 31, 1996 and 1995, and the related statements of changes in net
assets available for plan benefits for each of the three years in the period
ended December 31, 1996. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. 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 referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan
at December 31, 1996 and 1995, and the changes in its net assets available for
plan benefits for each of the three years in the period ended December 31,
1996, in conformity with generally accepted accounting principles.
Ernst & Young LLP
Los Angeles, California
March 21, 1997
<PAGE>
Page 5
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1996
(Part 1 of 2)
<CAPTION>
Transamerica Life Insurance & Annuity Transamerica
Transamerica __________________________________________________ Premier
Corporation Fixed Equity Cash
Common Bond Income Equity Index Reserve
Stock Fund Fund Fund Fund Fund
____________ ____ ______ ______ ______ ____________
<S> <C> <C> <C> <C> <C> <C>
Investments:
Transamerica Corporation
Common Stock--at fair value
(cost $128,357,251 for
3,021,573) shares) .......... $238,717,137
Transamerica Bond Fund--at
fair value (cost $4,813,130
for 397,169 shares) .......... $5,620,882
Transamerica Fixed Income
Fund--at cost plus accrued
interest of $13,675,089,
which approximates fair
value ........................ $45,730,944
Transamerica Equity Fund--at
fair value (cost $22,461,318
for 2,226,803 shares) ........ $36,837,936
Transamerica Equity Index
Fund--at fair value (cost
$4,924,707 for 407,652
shares) ...................... $6,984,976
Transamerica Premier Cash
Reserve Fund--at cost, which
approximates fair value ...... $4,486,994
Dodge & Cox Balanced Fund--at
fair value (cost $7,797,914
for 159,303 shares) ..........
T. Rowe Price Equity Income
Fund--at fair value (cost
$10,672,738 for 599,043
shares) ......................
Loans to participants .........
____________ __________ ___________ ___________ __________ __________
Total investments ............. 238,717,137 5,620,882 45,730,944 36,837,936 6,984,976 4,486,994
Dividends receivable ............ 1,505,277
____________ __________ ___________ ___________ __________ __________
NET ASSETS AVAILABLE
FOR PLAN BENEFITS $240,222,414 $5,620,882 $45,730,944 $36,837,936 $6,984,976 $4,486,994
============ ========== =========== =========== ========== ==========
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES 7,000 1,300 3,300 3,500 1,700 900
===== ===== ===== ===== ===== ===
<FN>
See notes to financial statements
</TABLE>
<PAGE>
Page 6
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1996
(Part 2 of 2)
<CAPTION>
T. Rowe
Dodge Price
& Cox Equity
Balanced Income Participant
Fund Fund Loans Total
________ _______ ___________ _____
<S> <C> <C> <C> <C>
Investments:
Transamerica Corporation
Common Stock--at fair value
(cost $128,357,251 for
3,021,573) shares) .......... $238,717,137
Transamerica Bond Fund--at
fair value (cost $4,813,130
for 397,169 shares) .......... 5,620,882
Transamerica Fixed Income
Fund--at cost plus accrued
interest of $13,675,089,
which approximates fair
value ........................ 45,730,944
Transamerica Equity Fund--at
fair value (cost $22,461,318
for 2,226,803 shares) ........ 36,837,936
Transamerica Equity Index
Fund--at fair value (cost
$4,924,707 for 407,652
shares) ...................... 6,984,976
Transamerica Premier Cash
Reserve Fund--at cost, which
approximates fair value ...... 4,486,994
Dodge & Cox Balanced Fund--at
fair value (cost $7,797,914
for 159,303 shares) .......... $9,529,502 9,529,502
T. Rowe Price Equity Income
Fund--at fair value (cost
$10,672,738 for 599,043
shares) ...................... $13,502,435 13,502,435
Loans to participants ......... $10,393,794 10,393,794
__________ ___________ ___________ ____________
Total investments ............. 9,529,502 13,502,435 10,393,794 371,804,600
Dividends receivable ............ 1,505,277
__________ ___________ ___________ ____________
NET ASSETS AVAILABLE
FOR PLAN BENEFITS $9,529,502 $13,502,435 $10,393,794 $373,309,877
========== =========== =========== ============
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES 2,000 2,400 1,600
===== ===== =====
<FN>
See notes to financial statements
</TABLE>
<PAGE>
Page 7
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1995
(Part 1 of 2)
<CAPTION>
Transamerica Life Insurance & Annuity John
Transamerica __________________________________________________ Hancock
Corporation Fixed Equity Cash
Common Bond Income Equity Index Reserve
Stock Fund Fund Fund Fund Fund
____________ ____ ______ ______ ______ _______
<S> <C> <C> <C> <C> <C> <C>
Investments:
Transamerica Corporation
Common Stock--at fair value
(cost $120,190,857 for
3,074,805 shares) ........... $224,076,383
Transamerica Bond Fund--at
fair value (cost $4,085,077
for 347,480 shares) .......... $4,782,438
Transamerica Fixed Income
Fund--at cost plus accrued
interest of $15,115,530,
which approximates fair
value ........................ $48,502,439
Transamerica Equity Fund--at
fair value (cost $16,661,300
for 1,872,290 shares) ........ $23,876,384
Transamerica Equity Index
Fund--at fair value (cost
$3,151,346 for 303,761
shares) ...................... $4,239,452
John Hancock Cash Reserve
Fund--at cost, which approxi-
mates fair value ............. $3,256,918
Dodge & Cox Balanced Fund--at
fair value (cost $6,542,558
for 136,681 shares) ..........
T. Rowe Price Equity Income
Fund--at fair value (cost
$7,636,693 for 447,346
shares) ......................
Loans to participants .........
____________ __________ ___________ ___________ __________ __________
Total investments ............. 224,076,383 4,782,438 48,502,439 23,876,384 4,239,452 3,256,918
Dividends receivable ............ 1,537,402
Cash equivalents ................ 565,056 5,255
____________ __________ ___________ ___________ __________ __________
NET ASSETS AVAILABLE
FOR PLAN BENEFITS $226,178,841 $4,782,438 $48,502,439 $23,881,639 $4,239,452 $3,256,918
============ ========== =========== =========== ========== ==========
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES 7,100 1,300 3,600 3,100 1,400 800
===== ===== ===== ===== ===== ===
<FN>
See notes to financial statements
</TABLE>
<PAGE>
Page 8
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1995
(Part 2 of 2)
<CAPTION>
T. Rowe
Dodge Price
& Cox Equity
Balanced Income Participant
Fund Fund Loans Total
________ _______ ___________ _____
<S> <C> <C> <C> <C>
Investments:
Transamerica Corporation
Common Stock--at fair value
(cost $120,190,857 for
3,074,805 shares) ............ $224,076,383
Transamerica Bond Fund--at
fair value (cost $4,085,077
for 347,480 shares) .......... 4,782,438
Transamerica Fixed Income
Fund--at cost plus accrued
interest of $15,115,530,
which approximates fair
value ........................ 48,502,439
Transamerica Equity Fund--at
fair value (cost $16,661,300
for 1,872,290 shares) .......... 23,876,384
Transamerica Equity Index
Fund--at fair value (cost
$3,151,346 for 303,761
shares) ...................... 4,239,452
John Hancock Cash Reserve
Fund--at cost, which approxi-
mates fair value ............. 3,256,918
Dodge & Cox Balanced Fund--at
fair value (cost $6,542,558
for 136,681 shares) ........... $7,462,800 7,462,800
T. Rowe Price Equity Income
Fund--at fair value (cost
$7,636,693 for 447,346
shares) ....................... $8,951,391 8,951,391
Loans to participants .......... $7,911,492 7,911,492
__________ __________ __________ ____________
Total investments ............. 7,462,800 8,951,391 7,911,492 333,059,697
Dividends receivable ............ 1,537,402
Cash equivalents ................ 570,311
__________ __________ __________ ____________
NET ASSETS AVAILABLE
FOR PLAN BENEFITS $7,462,800 $8,951,391 $7,911,492 $335,167,410
========== ========== ========== ============
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES 1,800 2,000 1,500
===== ===== =====
<FN>
See notes to financial statements
</TABLE>
<PAGE>
Page 9
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1996
(Part 1 of 2)
<CAPTION>
Transamerica Life Insurance & Annuity John Transamerica
Transamerica ________________________________________________ Hancock Premier
Corporation Fixed Equity Cash Cash
Common Bond Income Equity Index Reserve Reserve
Stock Fund Fund Fund Fund Fund Fund
____________ ____ _______ ______ ______ _______ ____________
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest ..................... $ 112,978 $ 3,129,336 $ 148,801 $ 16,194
Dividends .................... 6,067,765
____________ ___________ __________ __________
Net investment income .... 6,180,743 3,129,336 148,801 16,194
Net realized investment gains
and change in net unrealized
appreciation of investments .. 11,395,695 $ 152,532 $ 7,390,655 $1,017,355
Contributions:
Participants ................. 4,163,875 663,775 1,672,291 4,033,844 987,603 281,951 26,486
Loan repayments .............. 1,365,567 120,734 671,760 885,340 160,538 68,190 13,708
Employer (reduced by for-
feitures of $324,244) ...... 8,504,613
Defaulted loans ..............
Interfund transfers ............ (6,906,438) 313,611 (1,551,915) 3,217,194 1,166,937 (2,854,188) 4,450,966
Loan advances .................. (2,333,277) (235,212) (1,355,182) (951,122) (266,513) (109,261) (10,003)
____________ __________ __________ ___________ __________ __________ __________
Total additions .......... 22,370,778 1,015,440 2,566,290 14,575,911 3,065,920 (2,464,507) 4,497,351
DEDUCTIONS
Distributions to participants:
Securities, at cost .......... 8,228,451
Cash ......................... 98,754 176,996 5,337,785 1,619,614 320,396 792,411 10,357
____________ __________ __________ ___________ __________ __________ __________
Total deductions ......... 8,327,205 176,996 5,337,785 1,619,614 320,396 792,411 10,357
____________ __________ __________ ___________ __________ __________ __________
Net additions/(deductions) ..... 14,043,573 838,444 (2,771,495) 12,956,297 2,745,524 (3,256,918) 4,486,994
Net assets available for plan
benefits at December 31, 1995 226,178,841 4,782,438 48,502,439 23,881,639 4,239,452 3,256,918
____________ __________ ___________ ___________ __________ __________ __________
NET ASSETS AVAILABLE FOR PLAN
BENEFITS AT DECEMBER 31, 1996 $240,222,414 $5,620,882 $45,730,944 $36,837,936 $6,984,976 $ $4,486,994
============ ========== =========== =========== ========== ========== ==========
<FN>
See notes to financial statements
</TABLE>
<PAGE>
Page 10
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1996
(Part 2 of 2)
<CAPTION>
T. Rowe
Dodge Price
& Cox Equity
Balanced Income Participant
Fund Fund Loans Total
________ ________ ___________ _____
<S> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest .................... $ 747,490 $ 4,154,799
Dividends .................... $ 312,471 $ 385,916 6,766,152
__________ ___________ ___________ ____________
Net investment income .... 312,471 385,916 747,490 10,920,951
Net realized investment gains
and change in net unrealized
appreciation of investments .. 841,824 1,555,580 22,353,641
Contributions:
Participants ................. 1,210,012 1,483,319 14,523,156
Loan repayments .............. 218,638 309,833 (3,814,308)
Employer (reduced by for-
feitures of $324,244) ...... 8,504,613
Defaulted loans .............. 376,919 376,919
Interfund transfers ............ 412,665 1,751,168
Loan advances .................. (274,858) (385,385) 5,920,813
__________ ___________ ___________ ____________
Total additions .......... 2,720,752 5,100,431 3,230,914 56,679,280
DEDUCTIONS
Distributions to participants:
Securities, at cost .......... 8,228,451
Cash ......................... 654,050 549,387 748,612 10,308,362
__________ ___________ ___________ ____________
Total deductions ......... 654,050 549,387 748,612 18,536,813
__________ ___________ ___________ ____________
Net additions/(deductions) ..... 2,066,702 4,551,044 2,482,302 38,142,467
Net assets available for plan
benefits at December 31, 1995 7,462,800 8,951,391 7,911,492 335,167,410
__________ ___________ ___________ ____________
NET ASSETS AVAILABLE FOR PLAN
BENEFITS AT DECEMBER 31, 1996 $9,529,502 $13,502,435 $10,393,794 $373,309,877
========== =========== =========== ============
<FN>
See notes to financial statements
</TABLE>
<PAGE>
Page 11
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1995
(Part 1 of 2)
<CAPTION>
Transamerica Life Insurance & Annuity John
Transamerica _________________________________________________ Hancock
Corporation Fixed Equity Cash
Common Bond Income Equity Index Reserve
Stock Fund Fund Fund Fund Fund
____________ ____ _______ ______ ______ _________
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest ..................... $ 63,635 $ 3,179,887 $ 148,147
Dividends .................... 6,253,457
____________ ___________ __________
Net investment income .... 6,317,092 3,179,887 148,147
Net realized investment gains
and change in net unrealized
appreciation of investments .. 66,849,524 $ 764,570 $ 6,082,744 $1,012,391
Contributions:
Participants ................. 4,321,150 581,499 2,375,423 2,959,499 667,139 272,627
Loan recontribution .......... 1,253,637 91,018 609,699 537,233 119,455 68,378
Employer (reduced by for-
feitures of $402,690) ...... 8,037,553
Interfund transfers ............ (9,177,146) 563,497 3,276,844 2,102,343 142,863 1,960,347
Loan disbursements ............. (1,345,349) (124,961) (1,208,934) (430,533) (107,425) (202,722)
____________ __________ __________ ___________ __________ __________
Total additions .......... 76,256,461 1,875,623 8,232,919 11,251,286 1,834,423 2,246,777
DEDUCTIONS
Distributions to participants:
Securities, at cost .......... 7,868,446 188,362 693,154 239,167
Cash ......................... 140,251 4,854,941 1,223,577
____________ __________ __________ ___________ __________ __________
Total deductions ......... 8,008,697 188,362 4,854,941 693,154 239,167 1,223,577
____________ __________ __________ ___________ __________ __________
Net additions .................. 68,247,764 1,687,261 3,377,978 10,558,132 1,595,256 1,023,200
Net assets available for plan
benefits at December 31, 1994 157,931,077 3,095,177 45,124,461 13,323,507 2,644,196 2,233,718
____________ __________ ___________ ___________ __________ __________
NET ASSETS AVAILABLE FOR PLAN
BENEFITS AT DECEMBER 31, 1995 $226,178,841 $4,782,438 $48,502,439 $23,881,639 $4,239,452 $3,256,918
============ ========== =========== =========== ========== ==========
<FN>
See notes to financial statements
</TABLE>
<PAGE>
Page 12
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1995
(Part 2 of 2)
<CAPTION>
T. Rowe
Dodge Price
& Cox Equity
Balanced Income Participant
Fund Fund Loans Total
________ ________ ___________ _____
<S> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest ..................... $ 570,839 $ 3,962,508
Dividends .................... $ 385,103 $ 470,457 7,109,017
__________ __________ __________ ____________
Net investment income .... 385,103 470,457 570,839 11,071,525
Net realized investment gains
and change in net unrealized
appreciation of investments .. 1,032,118 1,493,733 77,235,080
Contributions:
Participants ................. 1,140,779 1,275,354 13,593,470
Loan recontribution .......... 199,863 237,989 (3,117,272)
Employer (reduced by for-
feitures of $402,690) ...... 8,037,553
Interfund transfers ............ 508,526 622,726
Loan disbursements ............ (255,767) (226,609) 3,902,300
__________ __________ __________ ____________
Total additions .......... 3,010,622 3,873,650 1,355,867 109,937,628
DEDUCTIONS
Distributions to participants:
Securities, at cost .......... 878,789 451,755 10,319,673
Cash ......................... 517,566 6,736,335
__________ __________ __________ ____________
Total deductions ......... 878,789 451,755 517,566 17,056,008
__________ __________ __________ ____________
Net additions .................. 2,131,833 3,421,895 838,301 92,881,620
Net assets available for plan
benefits at December 31, 1994 5,330,967 5,529,496 7,073,191 242,285,790
__________ __________ __________ ____________
NET ASSETS AVAILABLE FOR PLAN
BENEFITS AT DECEMBER 31, 1995 $7,462,800 $8,951,391 $7,911,492 $335,167,410
========== ========== ========== ============
<FN>
See notes to financial statements
</TABLE>
<PAGE>
Page 13
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1994
(Part 1 of 2)
<CAPTION>
Transamerica Life Insurance & Annuity John
Transamerica _________________________________________________ Hancock
Corporation Fixed Equity Cash
Common Bond Income Equity Index Reserve
Stock Fund Fund Fund Fund Fund
____________ ____ _______ ______ ______ ________
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest ..................... $ 43,895 $ 3,181,205
Dividends .................... 6,151,722 $ 97,271
____________ ___________ __________
Net investment income .... 6,195,617 3,181,205 97,271
Net realized investment gains
and change in net unrealized
appreciation (depreciation)
of investments ............... (24,352,000) $ (190,820) $ 507,571 $ 22,473
Contributions:
Participants ................. 4,575,031 645,681 2,250,526 2,527,598 645,672 259,149
Loan recontribution .......... 1,094,361 77,012 485,824 299,834 98,409 45,534
Employer (reduced by for-
feitures of $238,558) ...... 8,019,375
Interfund transfers ............ (1,265,560) (301,619) 540,764 800,926 (170,004) 147,978
Loan disbursements ............. (1,415,247) (108,388) (1,163,217) (342,484) (75,855) (113,603)
____________ __________ ___________ ___________ __________ __________
Total additions .......... (7,148,423) 121,866 5,295,102 3,793,445 520,695 436,329
DEDUCTIONS
Distributions to participants:
Securities, at cost .......... 6,413,511 387,061 371,303 78,165
Cash ......................... 105,314 4,761,331 1,338,028
____________ __________ ___________ ___________ __________ __________
Total deductions ......... 6,518,825 387,061 4,761,331 371,303 78,165 1,338,028
____________ __________ ___________ ___________ __________ __________
Net additions (deductions) ..... (13,667,248) (265,195) 533,771 3,422,142 442,530 (901,699)
Net assets available for plan
benefits at December 31, 1993 171,598,325 3,360,372 44,590,690 9,901,365 2,201,666 3,135,417
____________ __________ ___________ ___________ __________ __________
NET ASSETS AVAILABLE FOR PLAN
BENEFITS AT DECEMBER 31, 1994 $157,931,077 $3,095,177 $45,124,461 $13,323,507 $2,644,196 $2,233,718
============ ========== =========== =========== ========== ==========
<FN>
See notes to financial statements
</TABLE>
<PAGE>
Page 14
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1994
(Part 2 of 2)
<CAPTION>
T. Rowe
Dodge Price
& Cox Equity
Balanced Income Participant
Fund Fund Loans Total
________ ________ ___________ _____
<S> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest ..................... $ 468,102 $ 3,693,202
Dividends .................... $ 229,155 $ 426,629 6,904,777
__________ __________ __________ ____________
Net investment income .... 229,155 426,629 468,102 10,597,979
Net realized investment gains
and change in net unrealized
appreciation (depreciation)
of investments ............... (126,177) (222,945) (24,361,898)
Contributions:
Participants ................. 1,074,570 1,200,158 13,178,385
Loan recontribution .......... 141,133 166,322 (2,408,429)
Employer (reduced by for-
feitures of $238,558) ...... 8,019,375
Interfund transfers ............ 365,994 (118,479)
Loan disbursements ........... (147,487) (144,719) 3,511,000
__________ __________ __________ ____________
Total additions .......... 1,537,188 1,306,966 1,570,673 7,433,841
DEDUCTIONS
Distributions to participants:
Securities, at cost .......... 588,747 263,970 8,102,757
Cash ......................... 437,310 6,641,983
__________ __________ __________ ____________
Total deductions ......... 588,747 263,970 437,310 14,744,740
__________ __________ __________ ____________
Net additions (deductions) ..... 948,441 1,042,996 1,133,363 (7,310,899)
Net assets available for plan
benefits at December 31, 1993 4,382,526 4,486,500 5,939,828 249,596,689
__________ __________ __________ ____________
NET ASSETS AVAILABLE FOR PLAN
BENEFITS AT DECEMBER 31, 1994 $5,330,967 $5,529,496 $7,073,191 $242,285,790
========== ========== ========== ============
<FN>
See notes to financial statements
</TABLE>
<PAGE>
Page 15
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
NOTE A--Description of the Plan
The Transamerica Corporation Employees Stock Savings Plan (the Plan) is a
profit-sharing plan with provisions for pretax salary deferrals under
Section 401(k) of the Internal Revenue Code (the Code). (Prior to January 1,
1994, the Plan was an employee stock ownership plan which permitted Section
401(k) salary deferrals.) Substantially all salaried employees of
Transamerica Corporation (the Corporation) and its subsidiaries may
participate upon completion of one year of service. Subject to certain
restrictions, participants generally may defer 1% to 6% of their salaries and
contribute that amount to the Plan. These salary deferrals are matched at 75%
by employer contributions. Most non-highly compensated employees (as defined)
are permitted to defer an additional 1% to 6% of their salaries as
contributions to the Plan. Effective January 1, 1997, highly compensated
employees (as defined) are permitted to defer an additional 1% to 4% of their
salaries as contributions to the Plan. These additional contributions are not
matched by the employer.
Participant contributions under the Plan are invested, as directed by
the participant, in any of eight investment alternatives: the Corporation's
Common Stock, the Transamerica Premier Cash Reserve Fund (formerly John
Hancock Cash Reserve Fund), the Transamerica Bond Fund, the Dodge & Cox
Balanced Fund, the T. Rowe Price Equity Income Fund, the Transamerica Fixed
Income Fund, the Transamerica Equity Index Fund, and the Transamerica Equity
Fund. All employer matching contributions are invested in the Corporation's
common stock. Participants age 60 or older may redirect the investment of all
or part of their employer matching contributions from the Corporation's common
stock to any of the other available investment alternatives.
Eligible participants may, subject to certain restrictions, apply for
loans from their plan accounts. Loan repayments are deposited back into the
participant's plan accounts and allocated to the various investment funds
according to the participant's election for allocation of pretax
contributions. Loans from the employer matching account are not permitted.
The Corporation and its participating subsidiaries, including
Transamerica Life Insurance and Annuity Company (the issuer of the group
pension contract under which the Transamerica Fixed Income Fund is maintained
and the sponsoring company for the Transamerica Bond Fund, Transamerica Equity
Fund and Transamerica Equity Index Fund), are defined as parties in interest
with respect to the Plan under the Employee Retirement Income Security Act of
1974 (ERISA). Transactions between the Plan and such parties in interest are
intended to qualify for one or more of the prohibited transaction exemptions
under ERISA.
<PAGE>
Page 16
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1996
NOTE A--Description of the Plan (Continued)
The Plan provides that participants acquire a vested interest in the
employer account balances based upon their years of service with the
Corporation or its participating subsidiaries. If a participant terminates
employment before full vesting, the nonvested portion of the participant's
interest will be forfeited. The Corporation has the right to change or
terminate the Plan at any time. In the event the Plan is terminated, the Plan
provides for full vesting of all participants' employer account balances.
NOTE B--Significant Accounting Policies
Accounting for Investments: The Plan's investment in the Corporation's
common stock is valued at the closing price on the last business day of the
year on the New York Stock Exchange Composite Transactions.
The Transamerica Fixed Income Fund is valued at cost plus accrued
interest income and the Transamerica Premier Cash Reserve Fund (formerly John
Hancock Cash Reserve Fund) is valued at cost, which approximates fair value.
Shares of the Transamerica Bond Fund, the Transamerica Equity Fund, the
Transamerica Equity Index Fund, the Dodge & Cox Balanced Fund, and the T. Rowe
Price Equity Income Fund, are valued at the net asset value per share reported
by the Fund at December 31.
Investment transactions are accounted for on the date the securities are
purchased or sold (trade date). Repurchases of shares within the Plan are
accounted for at the average monthly price of the shares in the month they
are sold by employees or forfeited to the Plan. The price is calculated as
the average of the price of the stock as listed in the New York Stock Exchange
Composite Transactions as determined by the Plan administrator in a uniform
and nondiscriminatory manner. The cost of shares sold or distributed is
determined on an average cost basis. Dividend income from the Corporation's
common stock and shares of Dodge & Cox Balanced Fund and T. Rowe Price Equity
Income Fund is recorded on the ex-dividend date. Dividend income from
Transamerica Premier Cash Reserve Fund (formerly John Hancock Cash Reserve
Fund) is accrued as earned and interest income from Transamerica Fixed Income
Fund, Northern Trust's Short Term Investment Fund (cash equivalent) and from
participant loans is accrued as earned. Interest charged on participant
loans is at a fixed rate and is calculated at the Northern Trust prime rate
plus one percent.
Expenses: All Plan administrative expenses are paid by the Corporation
and its participating subsidiaries.
<PAGE>
Page 17
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1996
NOTE B--Significant Accounting Policies (Continued)
Income Taxes: The Internal Revenue Service has issued a determination
letter dated June 13, 1996, that the Plan qualifies, in form, under Section
401(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and the
underlying trust is, therefore, exempt from federal income taxes under Section
501(a) of the Code. Under a tax-qualified plan, participants are not subject
to income tax on employer contributions, contributions made through salary
deferrals, or income credited to their accounts until these amounts are
distributed.
Certain amounts reported in the financial statements are based on
management estimates. Such amounts may ultimately differ from those
estimates.
NOTE C--Reportable Transactions
Changes in the Plan's investment in Transamerica Corporation Common Stock
during each of the three years in the period ended December 31, 1996 are
summarized as follows:
Shares Cost
______ ____
Balance at December 31, 1993 2,987,738 $102,205,886
Purchases .................. 398,287 20,536,045
Sale for transfer .......... (34,790) (1,132,876)
Sale for loan distribution . (27,428) (1,080,828)
Distributions .............. (186,135) (6,413,511)
Fair value of forfeiture ... (5,655) (288,040)
_________ ____________
Balance at December 31, 1994 3,132,017 113,826,676
Purchases .................. 338,636 20,825,900
Sale for transfer .......... (152,156) (5,226,403)
Sale for loan distribution . (21,772) (974,429)
Distributions .............. (215,815) (7,868,446)
Fair value of forfeiture ... (6,105) (392,441)
_________ ____________
Balance at December 31, 1995 3,074,805 120,190,857
Purchases .................. 290,971 21,873,028
Sale for transfer .......... (99,125) (3,695,996)
Sale for loan distribution . (30,706) (1,473,526)
Distributions .............. (210,255) (8,228,446)
Fair value of forfeiture ... (4,117) (308,666)
_________ ____________
Balance at December 31, 1996 3,021,573 $128,357,251
========= ============
<PAGE>
Page 18
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1996
NOTE C--Reportable Transactions (Continued)
In January 1996, the Plan terminated its agreement with Bank of America,
its trustee, and transferred all the Plan's assets totaling $334,275,395 to
its new trustee, Northern Trust Company. This constituted a single
transaction in excess of 5% of the current value Plan's assets, which is
defined as a category (i) reportable transaction under ERISA.
During 1996, there were 30 open market purchases of Transamerica
Corporation Common Stock totaling 200,649 shares at a cost of $14,937,328 and
20 open market sales of Transamerica Corporation Common Stock totaling 128,290
shares for $9,981,978. For the Transamerica Fixed Income Fund there were 92
purchases totaling $8,385,501 and 371 sales totaling $11,861,777. These
constitute a series of transactions in excess of 5% of the current value of
the Plan's assets, which are defined as category (iii) reportable transactions
under ERISA.
Northern Trust Company, as Trustee for the Plan, temporarily invests
certain cash receipts of the plan in Northern Trust's Short Term Investment
Fund prior to investing the funds in the participants' selected investments.
During 1996, there were $18,411,622 in purchases of the Short Term Investment
Fund and $17,278,010 in sales which constitutes a series of transactions in
excess of 5% of the current value of the Plan's assets, and which are defined
as category (iii) reportable transactions under ERISA. There were no category
(ii) or (iv) reportable transactions during 1996. The Plan incurred no
expenses, and realized no gain or loss except for interest earned during the
period the units were held by the Plan, on these transactions.
NOTE D--Changes in Unrealized Appreciation (Depreciation) of Investments
The changes in unrealized appreciation (depreciation) of investments
result from fluctuations in the fair value of securities held. The following
table shows the unrealized appreciation (depreciation) of investments at
December 31, 1996, 1995 and 1994, and the changes in unrealized appreciation
(depreciation).
<PAGE>
Page 19
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1996
NOTE D--Changes in Unrealized Appreciation (Depreciation) of Investments
(Continued)
<TABLE>
<CAPTION>
Transamerica Life Insurance & Annuity T. Rowe
Transamerica _____________________________________ Dodge Price
Corporation Equity & Cox Equity
Common Bond Equity Index Balanced Income
Stock Fund Fund Fund Fund Fund Total
____________ ____ ______ ______ ________ _______ _____
<S> <C> <C> <C> <C> <C> <C> <C>
UNREALIZED APPRECIATION AT
DECEMBER 31, 1993 $ 67,348,256 $ 171,776 $ 1,265,234 $ 124,253 $ 74,819 $ 97,566 $ 69,081,904
Net increase (decrease) in
unrealized appreciation in
1994 ......................... (25,357,091) (185,366) 441,730 8,548 (133,943) (229,951) (25,456,073)
____________ _________ ___________ __________ __________ __________ ____________
UNREALIZED APPRECIATION
(DEPRECIATION) AT
DECEMBER 31, 1994 41,991,165 (13,590) 1,706,964 132,801 (59,124) (132,385) 43,625,831
Net increase in unrealized
appreciation in 1995 ......... 61,894,361 710,951 5,508,120 955,305 979,366 1,447,083 71,495,186
____________ _________ ___________ __________ __________ __________ ____________
UNREALIZED APPRECIATION
AT DECEMBER 31, 1995 103,885,526 697,361 7,215,084 1,088,106 920,242 1,314,698 115,121,017
Net increase in unrealized
appreciation in 1996 ......... 6,474,360 110,391 7,161,534 972,163 811,346 1,514,999 17,044,793
____________ _________ ___________ __________ __________ __________ ____________
UNREALIZED APPRECIATION
AT DECEMBER 31, 1996 $110,359,886 $ 807,752 $14,376,618 $2,060,269 $1,731,588 $2,829,697 $132,165,810
============ ========= =========== ========== ========== ========== ============
</TABLE>
<PAGE>
EXHIBIT 23.1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in Registration Statements
on Form S-8 (File Nos. 2-83724, 33-12324, 33-38267 and 33-55587) pertaining to
the Transamerica Corporation Employee Stock Savings Plan of our report dated
March 21, 1997, with respect to the financial statements of Transamerica
Corporation Employee Stock Savings Plan included in this Annual Report on Form
11-K for the year ended December 31, 1996.
Ernst & Young LLP
Los Angeles, California
March 24, 1997
