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, 1998
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, 1998 and 1997
Statement of Changes in Net Assets Available for Plan Benefits
- Years ended December 31, 1998, 1997 and 1996
Notes to Financial Statements - December 31, 1998
(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 February 18, 1999
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 29, 1999
<PAGE>
Page 3
FINANCIAL STATEMENTS
For
ANNUAL REPORT ON FORM 11-K
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
Year Ended December 31, 1998
<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, 1998 and 1997, 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, 1998. 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, 1998 and 1997, and the changes in its net assets available for plan
benefits for each of the three years in the period ended December 31, 1998, in
conformity with generally accepted accounting principles.
Ernst & Young LLP
Los Angeles, California
February 18, 1999
<PAGE>
Page 5
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1998
(Part 1 of 2)
<CAPTION>
Transamerica Transamerica
Corporation Transamerica Transamerica Premier
Common Transamerica Fixed Transamerica Equity Cash
Stock Bond Income Equity Index Reserve
Fund Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Investments:
Transamerica Corporation
Common Stock--at fair value
(cost $128,640,042 for
4,999,062 shares) .................... $288,695,861
Transamerica Bond Fund--at
fair value (cost $6,414,194
for 494,562 shares) .................. $ 8,541,094
Transamerica Fixed Income
Fund--at cost, which
approximates fair value .............. $ 36,926,864
Transamerica Equity Fund--at
fair value (cost $35,597,149
for 2,766,493 shares) ................ $ 96,716,602
Transamerica Equity Index
Fund--at fair value (cost
$7,843,684 for 533,590
shares) .............................. $ 15,596,845
Transamerica Premier Cash
Reserve Fund--at cost, which
approximates fair value .............. $ 11,088,067
Dodge & Cox Balanced Fund--at
fair value (cost $9,880,529
for 191,770 shares)
T. Rowe Price Equity Income
Fund--at fair value (cost
$12,926,350 for 697,907
shares) ..............................
American EuroPacific Growth
Fund--at fair value (cost
$1,038,578 for 35,983
shares) ..............................
Loans to participants
------------ ------------ ------------ ------------ ------------ ------------
Total investments ...................... 288,695,861 8,541,094 36,926,864 96,716,602 15,596,845 11,088,067
Cash ..................................... 4,790,806
Dividends receivable ..................... 1,249,766
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS ............ $294,736,433 $ 8,541,094 $ 36,926,864 $ 96,716,602 $ 15,596,845 $ 11,088,067
============ ============ ============ ============ ============ ============
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES ............ 7,400 1,400 2,800 4,700 2,600 900
============ ============ ============ ============ ============ ============
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 6
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1998
(Part 2 of 2)
<CAPTION>
T.Rowe
Dodge Price American
& Cox Equity EuroPacific
Balanced Income Growth Participant
Fund Fund Fund Loans Total
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Investments:
Transamerica Corporation
Common Stock--at fair value
(cost $128,640,042 for
4,999,062 shares) .................... $288,695,861
Transamerica Bond Fund--at
fair value (cost $6,414,194
for 494,562 shares) .................. 8,541,094
Transamerica Fixed Income
Fund--at cost, which
approximates fair value .............. 36,926,864
Transamerica Equity Fund--at
fair value (cost $35,597,149
for 2,766,493 shares) ................ 96,716,602
Transamerica Equity Index
Fund--at fair value (cost
$7,843,684 for 533,590
shares) .............................. 15,596,845
Transamerica Premier Cash
Reserve Fund--at cost, which
approximates fair value .............. 11,088,067
Dodge & Cox Balanced Fund--at
fair value (cost $9,880,529
for 191,770 shares) .................. $ 12,507,231 12,507,231
T. Rowe Price Equity Income
Fund--at fair value (cost
$12,926,350 for 697,907
shares) .............................. $ 18,368,916 18,368,916
American EuroPacific Growth
Fund--at fair value (cost
$1,038,578 for 35,983
shares) .............................. $ 1,021,928 1,021,928
Loans to participants .................. $ 11,749,722 11,749,722
------------ ------------ ------------ ------------ ------------
Total investments ...................... 12,507,231 18,368,916 1,021,928 11,749,722 501,213,130
Cash ..................................... 4,790,806
Dividends receivable ..................... 1,249,766
------------ ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS ............ $ 12,507,231 $ 18,368,916 $ 1,021,928 $ 11,749,722 $507,253,702
============ ============ ============ ============ ============
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES ............ 2,200 2,600 200 1,400
============ ============ ============ ============
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 7
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1997
(Part 1 of 2)
<CAPTION>
Transamerica Transamerica
Corporation Transamerica Transamerica Premier
Common Transamerica Fixed Transamerica Equity Cash
Stock Bond Income Equity Index Reserve
Fund Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Investments:
Transamerica Corporation
Common Stock--at fair value
(cost $124,038,350 for
5,342,312 shares) .................... $284,478,052
Transamerica Bond Fund--at
fair value (cost $5,353,136
for 429,736 shares) .................. $ 6,788,580
Transamerica Fixed Income
Fund--at cost, which
approximates fair value .............. $ 40,025,704
Transamerica Equity Fund--at
fair value (cost $32,130,495
for 2,658,247 shares) ................ $ 64,364,928
Transamerica Equity Index
Fund--at fair value (cost
$6,479,547 for 481,144
shares) ............................. $ 10,968,966
Transamerica Premier Cash
Reserve Fund--at cost, which
approximates fair value ............. $ 6,382,160
Dodge & Cox Balanced Fund--at
fair value (cost $9,736,555
for 189,048 shares) .................
T. Rowe Price Equity Income
Fund--at fair value (cost
$13,481,650 for 716,019
shares) ............................
Loans to participants
------------ ------------ ------------ ------------ ------------ ------------
Total investments ..................... 284,478,052 6,788,580 40,025,704 64,364,928 10,968,966 6,382,160
Cash .................................... 2,292,229
Dividends receivable .................... 1,346,339
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS ............ $288,116,620 $ 6,788,580 $ 40,025,704 $ 64,364,928 $ 10,968,966 $ 6,382,160
============ ============ ============ ============ ============ ============
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES ............ 6,700 1,200 2,900 3,900 2,000 800
============ ============ ============ ============ ============ ============
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 8
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1997
(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 $124,038,350 for
5,342,312 shares) .......... $284,478,052
Transamerica Bond Fund--at
fair value (cost $5,353,136
for 429,736 shares) ........ 6,788,580
Transamerica Fixed Income
Fund--at cost, which
approximates fair value .... 40,025,704
Transamerica Equity Fund--at
fair value (cost $32,130,495
for 2,658,247 shares) ...... 64,364,928
Transamerica Equity Index
Fund--at fair value (cost
$6,479,547 for 481,144
shares) .................... 10,968,966
Transamerica Premier Cash
Reserve Fund--at cost, which
approximates fair value .... 6,382,160
Dodge & Cox Balanced Fund--at
fair value (cost $9,736,555
for 189,048 shares) ........ $ 12,624,626 12,624,626
T. Rowe Price Equity Income
Fund--at fair value (cost
$13,481,650 for 716,019
shares) .................... $ 18,666,621 18,666,621
Loans to participants ........ $ 11,594,351 11,594,351
------------ ------------ ------------ ------------
Total investments ............ 12,624,626 18,666,621 11,594,351 455,893,988
Cash ........................... 2,292,229
Dividends receivable ........... 1,346,339
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS .. $ 12,624,626 $ 18,666,621 $ 11,594,351 $459,532,556
============ ============ ============ ============
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES .. 2,000 2,400 1,500
============ ============ ============
<FN>
See notes to financial statements
</FN>
</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, 1998
(Part 1 of 2)
<CAPTION>
Transamerica Transamerica
Corporation Transamerica Transamerica Premier
Common Transamerica Fixed Transamerica Equity Cash
Stock Bond Income Equity Index Reserve
Fund Fund Fund Fund Fund Fund
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest ..................... $ 148,579 $ 2,477,937 $ 463,477
Dividend ..................... 5,046,600
------------- ------------- ------------- ------------- ------------- -------------
Net investment income .. 5,195,179 2,477,937 463,477
Net realized investment gain
and change in net unrealized
appreciation of investments . 23,918,357 $ 691,456 $ 28,885,020 $ 3,263,742
Contributions:
Participants ................ 3,646,266 650,241 1,142,332 8,859,113 2,608,074 905,045
Loan repayments ............. 1,518,169 154,386 594,058 1,785,994 363,483 94,744
Employer (reduced by
forfeitures of $251,062) .. 9,455,735
Interfund transfers ........... (5,907,823) 1,446,057 874,103 (173,014) (172,641) 6,385,181
Loan advances ................. (1,872,554) (110,054) (721,497) (1,640,200) (337,564) (138,821)
------------- ------------- ------------- ------------- ------------- -------------
Total additions ........ 35,953,329 2,832,086 4,366,933 37,716,913 5,725,094 7,709,626
DEDUCTIONS
Distributions to participants:
Securities at fair value .... 29,333,516 1,079,572 5,365,239 1,097,215
Cash ........................ 7,465,773 3,003,719
------------- ------------- ------------- ------------- ------------- -------------
Total Deductions ....... 29,333,516 1,079,572 7,465,773 5,365,239 1,097,215 3,003,719
------------- ------------- ------------- ------------- ------------- -------------
Net additions/(deductions) .... 6,619,813 1,752,514 (3,098,840) 32,351,674 4,627,879 4,705,907
Net assets available for plan
benefits at December 31, 1997 288,116,620 6,788,580 40,025,704 64,364,928 10,968,966 6,382,160
------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS AT
DECEMBER 31, 1998 . $ 294,736,433 $ 8,541,094 $ 36,926,864 $ 96,716,602 $ 15,596,845 $ 11,088,067
============= ============= ============= ============= ============= =============
<FN>
See notes to financial statements
</FN>
</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, 1998
(Part 2 of 2)
<CAPTION>
T.Rowe
Dodge Price American
& Cox Equity EuroPacific
Balanced Income Growth Participant
Fund Fund Fund Loans Total
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest ............................... $ 1,011,920 $ 4,101,913
Dividend ............................... $ 1,103,450 $ 1,406,739 $ 38,865 7,595,654
------------- ------------- ------------- ------------- -------------
Net investment income ................ 1,103,450 1,406,739 38,865 1,011,920 11,697,567
Net realized investment gain
and change in net unrealized
appreciation of investments ............ (261,369) 257,595 (16,650) 56,738,151
Contributions:
Participants ........................... 1,739,115 2,298,943 91,568 21,940,697
Loan repayments ........................ 318,932 452,729 12,933 (5,295,428)
Employer (reduced by
forfeitures of $251,062) ......... 9,455,735
Interfund transfers ....................... (952,787) (2,409,586) 910,510
Loan advances ............................. (277,352) (409,029) (8,992) 5,516,063
------------- ------------- ------------- ------------- -------------
Total additions ...................... 1,669,989 1,597,391 1,028,234 1,232,555 99,832,150
DEDUCTIONS
Distributions to participants:
Securities at fair value ............... 1,787,384 1,895,096 6,306 40,564,328
Cash ................................... 1,077,184 11,546,676
------------- ------------- ------------- ------------- -------------
Total Deductions ......... 1,787,384 1,895,096 6,306 1,077,184 52,111,004
------------- ------------- ------------- ------------- -------------
Net additions/(deductions) ................ (117,395) (297,705) 1,021,928 155,371 47,721,146
Net assets available for plan
benefits at December 31, 1997 .......... 12,624,626 18,666,621 11,594,351 459,532,556
------------- ------------- ------------- ------------- -------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS AT
DECEMBER 31, 1998 ............. $ 12,507,231 $ 18,368,916 $ 1,021,928 $ 11,749,722 $ 507,253,702
============= ============= ============= ============= =============
<FN>
See notes to financial statements
</FN>
</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, 1997
(Part 1 of 2)
<CAPTION>
Transamerica Transamerica
Corporation Transamerica Transamerica Premier
Common Transamerica Fixed Transamerica Equity Cash
Stock Bond Income Equity Index Reserve
Fund Fund Fund Fund Fund Fund
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest $ 102,535 $ 2,904,243 $ 294,734
Dividend 5,584,060
------------- ------------- -------------
Net investment income 5,686,595 2,904,243 294,734
Net realized investment gain
and change in net unrealized
appreciation of investments .. 78,430,497 $ 627,692 $ 17,857,815 $ 2,429,150
Contributions:
Participants 3,503,041 566,340 1,339,561 5,226,721 1,519,012 872,708
Loan repayments 1,493,445 113,743 662,469 1,348,247 253,585 137,620
Employer (reduced by
forfeitures of $201,672) 8,107,187
Interfund transfers (13,113,058) 316,938 (3,069,834) 10,085,860 1,020,707 2,531,524
Loan advances (2,550,674) (146,591) (830,039) (1,479,063) (313,290) (167,360)
------------- ------------- ------------- ------------- ------------- -------------
Total additions 81,557,033 1,478,122 1,006,400 33,039,580 4,909,164 3,669,226
DEDUCTIONS
Distributions to participants:
Securities at fair value ..... 33,662,827 310,424 5,512,588 925,174
Cash 6,711,640 1,774,060
------------- ------------- ------------- ------------- ------------- -------------
Total Deductions 33,662,827 310,424 6,711,640 5,512,588 925,174 1,774,060
------------- ------------- ------------- ------------- ------------- -------------
Net additions/(deductions) ...... 47,894,206 1,167,698 (5,705,240) 27,526,992 3,983,990 1,895,166
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
------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS AT
DECEMBER 31, 1997 ... $ 288,116,620 $ 6,788,580 $ 40,025,704 $ 64,364,928 $ 10,968,966 $ 6,382,160
============= ============= ============= ============= ============= =============
<FN>
See notes to financial statements
</FN>
</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, 1997
(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 .................................. $ 901,583 $ 4,203,095
Dividend .................................. $ 940,749 $ 1,804,013 8,328,822
------------- ------------- ------------- -------------
Net investment income ................... 940,749 1,804,013 901,583 12,531,917
Net realized investment gain
and change in net unrealized
appreciation of investments ............... 1,156,483 2,355,274 102,856,911
Contributions:
Participants .............................. 1,490,489 1,837,758 16,355,630
Loan repayments ........................... 281,426 477,575 (4,768,110)
Employer (reduced by
forfeitures of $201,672) ............ 8,107,187
Interfund transfers .......................... 763,070 1,464,793
Loan advances ................................ (325,815) (529,064) 6,341,896
------------- ------------- ------------- -------------
Total additions ......................... 4,306,402 7,410,349 2,475,369 139,851,645
DEDUCTIONS
Distributions to participants:
Securities at fair value .................. 1,211,278 2,246,163 43,868,454
Cash ...................................... 1,274,812 9,760,512
------------- ------------- ------------- -------------
Total Deductions ............ 1,211,278 2,246,163 1,274,812 53,628,966
------------- ------------- ------------- -------------
Net additions/(deductions) ................... 3,095,124 5,164,186 1,200,557 86,222,679
Net assets available for plan
benefits at December 31, 1996 ............. 9,529,502 13,502,435 10,393,794 373,309,877
------------- ------------- ------------- -------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS AT
DECEMBER 31, 1997 ................ $ 12,624,626 $ 18,666,621 $ 11,594,351 $ 459,532,556
============= ============= ============= =============
<FN>
See notes to financial statements
</FN>
</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, 1996
(Part 1 of 2)
<CAPTION>
Transamerica John
Corporation Transamerica Transamerica Hancock
Common Transamerica Fixed Transamerica Equity Cash
Stock Bond Income Equity Index Reserve
Fund Fund Fund Fund Fund Fund
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest ........................ $ 112,978 $ 3,129,336 $ 148,801
Dividend ........................ 6,067,765
------------- ------------- ------------- -------------
Net investment income .. 6,180,743 3,129,336 148,801
Net realized investment gain
and change in net unrealized
appreciation of investments ..... 19,277,864 $ 160,366 $ 7,704,638 $ 1,069,229
Contributions:
Participants .................... 4,163,875 663,775 1,672,291 4,033,844 987,603 281,951
Loan repayments ................. 1,365,567 120,734 671,760 885,340 160,538 68,190
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)
Loan advances ...................... (2,333,277) (235,212) (1,355,182) (951,122) (266,513) (109,261)
------------- ------------- ------------- ------------- ------------- -------------
Total additions .. 30,252,947 1,023,274 2,566,290 14,889,894 3,117,794 (2,464,507)
DEDUCTIONS
Distributions to participants:
Securities, at fair value ....... 16,110,620 184,830 1,933,597 372,270
Cash ............................ 98,754 5,337,785 792,411
------------- ------------- ------------- ------------- ------------- -------------
Total deductions .. 16,209,374 184,830 5,337,785 1,933,597 372,270 792,411
------------- ------------- ------------- ------------- ------------- -------------
Net additions/(deductions) ......... 14,043,573 838,444 (2,771,495) 12,956,297 2,745,524 (3,256,918)
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 $
============= ============= ============= ============= ============= =============
<FN>
See notes to financial statements
</FN>
</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, 1996
(Part 2 of 2)
<CAPTION>
Transamerica T.Rowe
Premier Dodge Price
Cash & Cox Equity
Reserve Balanced Income Participant
Fund Fund Fund Loans Total
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest ............................... $ 16,194 $ 747,490 $ 4,154,799
Dividend ............................... $ 312,471 $ 385,916 6,766,152
------------- ------------- ------------- ------------- -------------
Net investment income ................ 16,194 312,471 385,916 747,490 10,920,951
Net realized investment gain
and change in net unrealized
appreciation of investments ............ 874,499 1,602,535 30,689,131
Contributions:
Participants ........................... 26,486 1,210,012 1,483,319 14,523,156
Loan repayments ........................ 13,708 218,638 309,833 (3,814,308)
Employer (reduced by for-
feitures of $324,244) ................ 8,504,613
Defaulted loans ........................ 376,919 376,919
Interfund transfers ....................... 4,450,966 412,665 1,751,168
Loan advances ............................. (10,003) (274,858) (385,385) 5,920,813
------------- ------------- ------------- ------------- -------------
Total additions ...................... 4,497,351 2,753,427 5,147,386 3,230,914 65,014,770
DEDUCTIONS
Distributions to participants:
Securities, fair value ................. 686,725 596,342 19,884,384
Cash ................................... 10,357 748,612 6,987,919
------------- ------------- ------------- ------------- -------------
Total deductions ..................... 10,357 686,725 596,342 748,612 26,872,303
------------- ------------- ------------- ------------- -------------
Net additions/(deductions) ................ 4,486,994 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 ...................... $ 4,486,994 $ 9,529,502 $ 13,502,435 $ 10,393,794 $ 373,309,877
============= ============= ============= ============= =============
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 15
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
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 immediately upon hire.
However, prior to January 1, 1998 completion of one year of service was required
for participation. 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. Effective January
1, 1999, most eligible employees are permitted to defer an additional 1% to 6%
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 nine investment alternatives: the Transamerica
Corporation Common Stock Fund, the Transamerica Premier Cash Reserve Fund, the
Transamerica Bond Fund, the Dodge & Cox Balanced Fund, the T. Rowe Price Equity
Income Fund, the American EuroPacific Growth Fund (which was added in March of
1998), the Transamerica Fixed Income Fund, the Transamerica Equity Index Fund,
and the Transamerica Equity Fund. All employer matching contributions are
invested in the Transamerica Corporation Common Stock Fund. Participants age 60
or older may redirect the investment of all or part of their employer matching
contributions from the Transamerica Corporation Common Stock Fund to any of the
other available investment alternatives. Effective March 5, 1999, this age 60
requirement was eliminated. Any participant may redirect the investment of all
or part of their employer matching account after March 5, 1999.
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) and Transamerica Security Sales Corporation Inc.
(The underwriter of the Transamerica Premier Cash Reserve 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.
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.
<PAGE>
Page 16
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1998
NOTE B--Significant Accounting Policies
Accounting for Investments: The Plan's investment in the Transamerica
Corporation Common Stock Fund 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 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, the T. Rowe Price Equity Income Fund, and the American
EuroPacific Growth Fund, are valued at the net asset value per share reported by
the Fund on the last business day of the year.
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 net asset value on the day they are sold by employees or
forfeited to the Plan. The unit price is calculated as the net asset value 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 Transamerica Corporation Common Stock Fund, Dodge & Cox
Balanced Fund, T. Rowe Price Equity Income Fund and American EuroPacific Growth
Fund is recorded on the ex-dividend date. Interest income from Transamerica
Premier Cash Reserve Fund, Transamerica Fixed Income Fund, Northern Trust's
Short Term Investment Fund (cash equivalent) and 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.
Stock Distribution: On January 15, 1999 Transamerica Corporation effected
a two-for-one stock split in the form of a special stock distribution to
stockholders of record as of December 31, 1998. All Transamerica Corporation
stock amounts herein have been restated to reflect the effect of this split.
Expenses: All Plan administrative expenses are paid by the Corporation and
its participating subsidiaries.
Income Taxes: The Internal Revenue Service has issued a determination
letter dated June 13, 1996, that the Plan qualifies under Section 401(a) of the
Code and therefore the related trust is not subject to tax under present income
tax law. 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.
<PAGE>
Page 17
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1998
NOTE C--Reportable Transactions
Changes in the Plan's investment in the Transamerica Corporation Common
Stock Fund during each of the three years in the period ended December 31, 1998
are summarized as follows:
Shares Cost
------------- -------------
Balance at December 31, 1995 ........... 6,149,610 $ 120,190,857
Purchases .............................. 560,546 21,015,013
Sale for transfer ...................... (198,250) (3,695,996)
Sale for loan distribution ............. (61,412) (1,473,526)
Sale for distributions ................. (420,510) (8,228,446)
Sale for forfeiture .................... (8,234) (308,666)
------------- -------------
Balance at December 31, 1996 ........... 6,021,750 127,499,236
Purchases .............................. 435,930 20,114,149
Sale for transfer ...................... (333,786) (6,667,008)
Sale for loan distribution ............. (54,622) (1,425,115)
Sale for distributions ................. (722,634) (15,339,431)
Sale for forfeiture .................... (4,326) (143,481)
------------- -------------
Balance at December 31, 1997 ........... 5,342,312 124,038,350
Purchases .............................. 430,190 23,561,569
Sale for transfer ...................... (214,224) (5,986,374)
Sale for loan distribution ............. (32,794) (1,003,181)
Sale for distributions ................. (521,828) (11,769,717)
Sale for forfeiture .................... (4,594) (200,605)
------------- -------------
Balance at December 31, 1998 ........... 4,999,062 $ 128,640,042
============= =============
<PAGE>
Page 18
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1998
NOTE C--Reportable Transactions (Continued)
During 1998, there was 1 open market purchase of Transamerica Corporation
Common Stock totaling 30,174 shares at a cost of $1,512,319 and 11 open market
sales of Transamerica Corporation Common Stock totaling 267,610 shares for
$15,197,800. For the Transamerica Fixed Income Fund there were 168 purchases of
fixed income fund shares totaling $16,902,151 and 901 sales of fixed income fund
shares totaling $27,986,119. 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
1998, there were $44,071,470 in purchases of the Short Term Investment Fund and
$41,572,893 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. 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. There were no category (i), (ii)
or (iv) reportable transactions during 1998.
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, 1998, 1997 and 1996, and the changes in unrealized appreciation
(depreciation).
<PAGE>
Page 19
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1998 (Part 1 of 2)
NOTE D--Changes in Unrealized Appreciation (Depreciation) of Investments (Continued)
<CAPTION>
Transamerica
Corporation Transamerica
Common Transamerica Transamerica Equity
Stock Bond Equity Index
Fund Fund Fund Fund
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
UNREALIZED APPRECIATION
AT DECEMBER 31, 1995 ...................... $ 103,885,526 $ 697,361 $ 7,215,084 $ 1,088,106
Net increase in unrealized
appreciation in 1996 ............................... 6,474,360 110,391 7,161,534 972,163
------------- ------------- ------------- -------------
UNREALIZED APPRECIATION
AT DECEMBER 31, 1996 ...................... 110,359,886 807,752 14,376,618 2,060,269
Net increase in unrealized
appreciation in 1997 ............................... 50,079,816 627,692 17,857,815 2,429,150
------------- ------------- ------------- -------------
UNREALIZED APPRECIATION
AT DECEMBER 31, 1997 ...................... 160,439,702 1,435,444 32,234,433 4,489,419
Net increase/(decrease) in unrealized
appreciation in 1998 ............................... (383,883) 691,456 28,885,020 3,263,742
------------- ------------- ------------- -------------
UNREALIZED APPRECIATION
(DEPRECIATION) AT
DECEMBER 31, 1998 ......................... $ 160,055,819 $ 2,126,900 $ 61,119,453 $ 7,753,161
============= ============= ============= =============
</TABLE>
<PAGE>
Page 20
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1998 (Part 2 of 2)
NOTE D--Changes in Unrealized Appreciation (Depreciation) of Investments (Continued)
<CAPTION>
T. Rowe
Dodge Price American
& Cox Equity EuroPacific
Balanced Income Growth
Fund Fund Fund Total
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
UNREALIZED APPRECIATION
AT DECEMBER 31, 1995 ..................... $ 920,242 $ 1,314,698 $ $ 115,121,017
Net increase in unrealized
appreciation in 1996 .............................. 811,346 1,514,999 17,044,793
------------- ------------- ------------- -------------
UNREALIZED APPRECIATION
AT DECEMBER 31, 1996 ..................... 1,731,588 2,829,697 132,165,810
Net increase in unrealized
appreciation in 1997 .............................. 1,156,483 2,355,274 74,506,230
------------- ------------- ------------- -------------
UNREALIZED APPRECIATION
AT DECEMBER 31, 1997 ..................... 2,888,071 5,184,971 206,672,040
Net increase/(decrease) in unrealized
appreciation in 1998 .............................. (261,369) 257,595 (16,650) 32,435,911
------------- ------------- ------------- -------------
UNREALIZED APPRECIATION
(DEPRECIATION) AT
DECEMBER 31, 1998 ........................ $ 2,626,702 $ 5,442,566 $ (16,650) $ 239,107,951
============= ============= ============= =============
</TABLE>
NOTE E--Subsequent Event (unaudited)
On February 18, 1999, Transamerica announced that it had signed a merger
agreement with AEGON N.V. (AEGON) providing for AEGON's acquisition of all of
Transamerica's outstanding common stock for a combination of cash and AEGON
stock worth $9.7 billion. The merger is expected to close during the summer of
1999.
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statements
(Forms S-8 Nos. 2-83724, 33-12324, 33-38267 and 33-55587) pertaining to the
Transamerica Corporation Employee Stock Savings Plan of our report dated
February 18, 1999, with respect to the financial statements of Transamerica
Corporation Employees Stock Savings Plan included in this Annual Report (Form
11-K) for the year ended December 31, 1998.
Ernst & Young LLP
Los Angeles, California
March 29, 1999
