New York
(State or other jurisdiction of incorporation or organization)
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6311
(Primary Standard Industrial Classification Code Number)
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13-3191369
(I.R.S. Employer
Identification No.)
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5
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10
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14
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14
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14
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26
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1.
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27
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27
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29
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2.
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30
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31
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3.
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31
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32
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32
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34
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4.
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35
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5.
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49
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51
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6.
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52
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52
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52
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54
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55
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7.
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55
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56
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56
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57
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57
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8.
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57
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57
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57
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58
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9.
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59
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10.
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62
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63
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63
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64
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11.
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64
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64
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65
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66
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66
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66
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66
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67
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68
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68
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68
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69
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69
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69
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69
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71
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71
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72
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72
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72
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72
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72
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72
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12.
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73
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73
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73
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73
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73
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75
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75
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75
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13.
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75
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76
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80
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90
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90
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90
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14.
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98
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99
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99
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99
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100
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100
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102
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104
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105
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Back Cover
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Back Cover
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FEES AND
EXPENSES
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Prospectus
Location
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Charges
for Early
Withdrawals
|
If you withdraw money from the Contract within six years of your
last Purchase Payment,
you will be assessed a withdrawal charge of up to 8% of the Purchase
Payment withdrawn,
declining to 0% over that time period. For example, if you invest
$100,000 in the Contract
and make an early withdrawal, you could pay a withdrawal charge of
up to $8,000.
In addition, if you take a full or partial withdrawal (including
financial adviser fees that you
choose to have us pay from this Contract) from an Index Option on a
date other than the
Term End Date, a Daily Adjustment will apply to the Index Option
Value available for
withdrawal. The Daily Adjustment also applies if before the Term End
Date you execute a
Performance Lock, you annuitize the Contract, we pay a death
benefit, or we deduct
Contract fees and expenses. The Daily Adjustment may be positive,
negative, or equal to
zero. A negative Daily Adjustment will result in a loss. In extreme
circumstances, a negative
Daily Adjustment could result in a loss beyond the protection of the
10%, 20%, or 30%
Buffer Buffer, as applicable. The maximum potential loss from a
negative Daily Adjustment
is -99%.
|
Fee Tables
4. Valuing Your
Contract
6. Expenses
Appendix B –
Daily
Adjustment
|
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Transaction
Charges
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Other than withdrawal charges and Daily Adjustments that may apply
to withdrawals and
other transactions under the Contract, there are no other
transaction charges.
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Fee Tables
6. Expenses
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Ongoing
Fees and
Expenses
(annual
charges)
|
The table below describes the fees and expenses that you may pay each year, depending
on the options you choose. Please refer to your Contract
specifications page for information
about the specific fees you will pay each year based on the options you
have elected.
These ongoing fees and expenses do not reflect any financial adviser
fees paid to a
Financial Professional from your Contract Value or other assets of
the Owner. If such
charges were reflected, these ongoing fees and expenses would be
higher.
|
Fee Tables
6. Expenses
Appendix C –
Fund Available
Under the
Contract
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Annual Fee
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Minimum
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Maximum
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Base Contract(1)
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1.26%
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1.26%
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Investment Options(2)
(Fund fees and expenses)
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0.88%
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0.88%
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Optional Benefits Available for an Additional
Charge
(for a single optional benefit, if elected)
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Not Applicable
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Not Applicable
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(1)
As a percentage of the Variable Option’s average net assets, plus an
amount attributable to the estimated
contract maintenance charge based on expected Contract sales.
|
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||
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(2)
As a percentage of the AZL Government Money Market Fund's average
daily net assets.
|
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FEES AND
EXPENSES
|
Prospectus
Location
|
||
|
Because your Contract is customizable, the choices you make affect
how much you will
pay. To help you understand the cost of owning your Contract, the
following table shows the
lowest and highest cost you could pay each year, based on current
charges. This estimate
assumes that you do not take withdrawals from the Contract, which could be subject to a
withdrawal charge, and if taken from the Index
Options could result in substantial
losses due to the application of negative Daily
Adjustments.
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Lowest Annual Cost:
$1,944
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Highest Annual Cost:
$1,944
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Assumes:
•Investment of $100,000 in the Variable
Option
•5% annual appreciation
•No additional Purchase Payments,
transfers, or withdrawals
•No financial adviser fees
|
Assumes:
•Investment of $100,000 in the Variable
Option
•5% annual appreciation
•No additional Purchase Payments,
transfers, or withdrawals
•No financial adviser fees
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RISKS
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Risk of Loss
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You can lose money by investing in the Contract, including loss of
principal and previous
earnings.
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Risk Factors
|
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Not a
Short-Term
Investment
|
• This Contract is not a short-term investment and is not
appropriate if you need ready
access to cash.
• Considering the benefits of tax deferral and long-term income, the
Contract is generally
more beneficial to investors with a long investment time horizon.
• If, within six years after we receive a Purchase Payment, you take
a full or partial
withdrawal (including financial adviser fees that you choose to
have us pay from this
Contract), withdrawal charges will apply. A withdrawal charge will
reduce your Contract
Value or the amount of money that you actually receive. Withdrawals
may reduce or end
Contract guarantees.
• Withdrawals are subject to income taxes, and may also be subject
to a 10% additional
federal tax for amounts withdrawn before age 59 1∕2.
• Amounts invested in an Index Option must be held in the Index
Option for the full Term
before they can receive a Performance Credit. We apply a Daily
Adjustment, if before the
Term End Date, you take a full or partial withdrawal (including
financial adviser fees that
you choose to have us pay from this Contract), you execute a
Performance Lock, you
annuitize the Contract, we pay a death benefit, or we deduct
Contract fees and expenses.
• The Traditional Death Benefit may not be modified, but it will
terminate if you take
withdrawals that reduce both the Contract Value, Cash Value, and
Guaranteed Death
Benefit Value to zero. Withdrawals may reduce the Traditional Death
Benefit’s
Guaranteed Death Benefit Value by more than the value withdrawn and
could end the
Traditional Death Benefit.
|
Risk Factors
4. Valuing Your
Contract
10. Death Benefit
Appendix B –
Daily Adjustment
|
||
Risks
Associated
with
Investment
Options
|
• An investment in the Contract is subject to the risk of poor
investment performance and
can vary depending on the performance of the Variable Option and
the Index Options
available under the Contract.
• The Variable Option and each Index Option have their own unique
risks.
• You should review the Fund’s prospectus and disclosures, including
risk factors, before
making an investment decision.
|
Risk Factors
|
||
Insurance
Company
Risks
|
An investment in the Contract is subject to the risks related to us.
All obligations,
guarantees or benefits of the Contract are the obligations of
Allianz Life of New York and
are subject to our claims-paying ability and financial strength.
More information about
Allianz Life of New York, including our financial strength ratings,
is available upon request
by visiting www.allianzlife.com/new-york/about/why-allianz, or
contacting us at (800)
624-0197.
|
Risk Factors
|
|
RESTRICTIONS
|
Prospectus
Location
|
||
Investments
|
• We restrict additional Purchase Payments during the Accumulation
Phase. Each Index
Year, you cannot add more than your initial amount (i.e., the total
of all Purchase
Payments received before the first Quarterly Contract Anniversary
of the first Contract
Year) without our prior approval.
• We do not accept additional Purchase Payments during the Annuity
Phase.
• We typically only allow assets to move into the Index Options on
the Index Effective Date
and on subsequent Index Anniversaries as discussed in section 3,
Purchasing the
Contract – Allocation of Purchase Payments and Contract Value
Transfers. However, if
you execute an Early Reallocation, we will move assets into an
Index Option on the
Business Day we receive your Early Reallocation request in Good
Order. The Index
Performance Strategy 6-year Term Index Options are not available as
a destination for
Early Reallocation, but they can be a source.
• You can typically transfer Index Option Value only on Term End
Dates. However, you can
transfer assets out of an Index Option before the Term End Date by
executing a
Performance Lock as discussed in section 4, Valuing Your Contract –
Performance Locks.
• We do not allow assets to move into an established Index Option
until the Term End Date.
If you request to allocate a Purchase Payment into an established
Index Option on an
Index Anniversary that is not a Term End Date, we will allocate
those assets to the same
Index Option with a new Term Start Date.
• With notice, we may make certain Index Options temporarily
unavailable for a year or
more if we are unable to support the minimum Trigger Rate or Cap on
that Index Option.
– We cannot make Group A Index Options temporarily
unavailable on the Index Effective
Date or an Index Anniversary.
– We can make Group B Index Options temporarily unavailable on the
Index Effective Date
or an Index Anniversary.
– We can make Group C Index Options temporarily unavailable on an
Index Anniversary
occurring on or after the sixth Index Anniversary.
(For more information on an Index Option’s temporary unavailability
group, please see
Overview of the Contract – What are the Phases of the Contract?)
Once we make an
Index Option temporarily unavailable, it may continue to be
unavailable so long as we are
unable to support its minimum Trigger Rate or Cap due to yield on
investments or the
availability or cost of hedging. However, we cannot permanently
eliminate Index Options
after we issue your Contract, and a temporarily unavailable Index
Option will become
available once we can support its minimum Trigger Rate or Cap.
Although we cannot
eliminate an Index Option from your Contract, we reserve the right
to substitute Indexes
either on a Term Start Date or during a Term. We also cannot make
an Index Option
temporarily unavailable during a Term, or for any other reason
– We can make all Index Options temporarily unavailable for Early
Reallocation at any
time, which means there may be times when Early Reallocation is
unavailable to you.
• We reserve the right to substitute the Fund in which the Variable
Option invests. We also
reserve the right to substitute Indexes either on a Term Start Date
or during a Term. We
can also decline a Purchase Payment if it does not meet the
requirements set out in
section 3, Purchasing the Contract – Purchase Requirements.
|
Overview of the
Contract
Risk Factors
3. Purchasing the
Contract
4. Valuing Your
Contract
5. Information
Related to the
Variable Option's
Underlying Fund
Appendix A –
Available Indexes
|
||
Optional
Benefits
|
The Contract does not offer any Optional Benefits.
|
Not Applicable
|
||
|
TAXES
|
|
||
Tax
Implications
|
• Consult with a tax professional to determine the tax implications
of an investment in and
withdrawals from or payments received under the Contract.
• If you purchased the Contract through a tax-qualified plan or
individual retirement account
(IRA), you do not get any additional tax benefit under the
Contract.
• Generally, earnings under a Non-Qualified Contract are taxed at
ordinary income rates
when withdrawn, and may also be subject to a 10% additional federal
tax for amounts
withdrawn before age 59 1∕2.
• Generally, distributions from Qualified Contracts are taxed at
ordinary income tax rates
when withdrawn, and may also be subject to a 10% additional federal
tax for amounts
withdrawn before age 59 1∕2.
|
11. Taxes
|
|
CONFLICTS OF
INTEREST
|
Prospectus
Location
|
||
Investment
Professional
Compensation
|
Your Financial Professional may receive compensation for selling
this Contract to you, in
the form of commissions, additional cash benefits (e.g., cash
bonuses), and non-cash
compensation. We and/or our wholly owned subsidiary distributor may
also make marketing
support payments to certain selling firms for marketing services and
costs associated with
Contract sales. This conflict of interest may influence your
Financial Professional to
recommend this Contract over another investment for which the
Financial Professional is
not compensated or compensated less.
|
12. Other
Information –
Distribution
|
||
Exchanges
|
Some Financial Professionals may have a financial incentive to offer
you a new contract in
place of one you already own. You should only exchange your contract
if you determine,
after comparing the features, fees, and risks of both contracts,
that it is better for you to
purchase the new contract rather than continue to own your existing
contract.
|
12. Other
Information –
Distribution
|
Currently Available
Crediting Methods,
Term Lengths and Buffers
|
Temporarily
Unavailable
Identifier
|
Currently
Available Indexes
|
Positive Index Performance
Participation Limit
|
Index Dual Precision Strategy
1-year Term with 10% Buffer
|
• Group B
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
|
• 5% minimum Trigger Rate
|
Index Precision Strategy
1-year Term with 10% Buffer
|
• Group C
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
|
• 5% minimum Trigger Rate
|
Index Performance Strategy
1-year Term with 10%, 20%, or
30% Buffer
|
• Group A for 10%
Buffer
• Group C for 20%
or 30% Buffer
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
|
• 3% minimum Cap for 30%
Buffer
• 4% minimum Cap for 20%
Buffer
• 5% minimum Cap for 10%
Buffer
• Can be “uncapped” (i.e., we do
not declare a Cap for that Term)
|
Index Performance Strategy
3-year Term with 10%, 20%, or
30% Buffer
|
• Group A for 10%
Buffer
• Group C for 20%
or 30% Buffer
|
• S&P 500® Index
• Russell 2000® Index
|
• 9% minimum Cap for 30%
Buffer
• 12% minimum Cap for 20%
Buffer
• 15% minimum Cap for 10%
Buffer
• Can be uncapped
• 100% minimum Participation
Rate
|
Index Performance Strategy
6-year Term with 10%, 20%, or
30% Buffer
|
• Group A for 10%
Buffer
• Group C for 20%
or 30% Buffer
|
• S&P 500® Index
• Russell 2000® Index
|
• 18% minimum Cap for 30%
Buffer
• 24% minimum Cap for 20%
Buffer
• 30% minimum Cap for 10%
Buffer
• Can be uncapped
• 100% minimum Participation
Rate
|
Number of Complete Years
Since Purchase Payment
|
Withdrawal Charge Amount
|
0
|
8%
|
1
|
7%
|
2
|
6%
|
3
|
5%
|
4
|
3%
|
5
|
1%
|
6 years or more
|
0%
|
|
Index Dual Precision Strategy, Index Precision Strategy, and
Index Performance Strategy
|
Daily Adjustment Maximum Potential Loss
|
99%
|
(as a percentage of Index Option Value, applies for distributions
from an Index Option before any Term End Date)(3)
|
|
Administrative Expenses (or contract maintenance charge)(1)
(per year)
|
$50
|
Base Contract Expenses(2)
(as a percentage of the Variable Option’s average net assets)(3)
|
1.25%
|
(expenses that are deducted from Fund assets, including management fees,
distribution and/or service (12b-1) fees, and other expenses)
|
0.88%
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
(1) If you surrender your Contract (take a full withdrawal) at the end of
the applicable time period:
|
$9,355
|
$12,049
|
$14,102
|
$24,516
|
(2) If you annuitize your Contract at the end of the applicable time
period.
|
N/A*
|
$6,649
|
$11,402
|
$24,516
|
(3) If you do not surrender your Contract.
|
$2,155
|
$6,649
|
$11,402
|
$24,516
|
|
January 1, 2014 through December 31, 2023
|
|||
|
S&P 500® Index
|
Nasdaq-100® Index
|
Russell 2000® Index
|
EURO STOXX 50®
|
Returns without dividends
|
11.02
%
|
19.57
%
|
6.76
%
|
4.60
%
|
Returns with dividends
|
13.09
%
|
20.79
%
|
8.19
%
|
8.10
%
|
We will not provide advice or notify
you regarding whether you should execute a Performance Lock or Early
Reallocation or the optimal time for
doing so. We will not warn you if you execute a Performance Lock or Early
Reallocation at a sub-optimal time.
We are not responsible for any losses related to your decision whether or not to
execute a Performance Lock or Early
Reallocation.
|
We will not provide advice or notify
you regarding whether you should execute an Early Reallocation or the optimal
time for doing so. We will not warn
you if you execute an Early Reallocation at a sub-optimal time. We are not
responsible for any losses related
to your decision whether or not to execute an Early Reallocation.
|
Financial Adviser Fee
Withdrawal
|
Contract
Value
|
Traditional Death Benefit’s Guaranteed Death Benefit
|
Prior to 1st years withdrawal
|
$ 100,000
|
$ 90,000
|
$5,000 withdrawal (subject to an
|
|
|
8% withdrawal charge)
|
– [($5,000 ÷ (1 – 8%)]
|
|
Amount withdrawn
|
– $5,435
|
– [($5,435 ÷ 100,000) x 90,000]
|
|
|
= - $4,891
|
After 1st years withdrawal
|
$ 94,565
|
$ 85,109
|
|
|
|
Prior to 2nd years withdrawal
|
$ 97,000
|
$ 85,109
|
$5,000 withdrawal (not subject to a
|
|
|
withdrawal charge)
|
– $5,000
|
– [($5,000 ÷ 97,000) x 85,109]
|
|
|
= - $4,387
|
After 2nd years withdrawal
|
$ 92,000
|
$ 80,722
|
|
|
|
Prior to 3rd years withdrawal
|
$ 80,000
|
$ 80,722
|
$5,000 withdrawal (not subject to a
|
|
|
withdrawal charge)
|
– $5,000
|
– [($5,000 ÷ 80,000) x 80,722]
|
|
|
= - $5,045
|
After 3rd years withdrawal
|
$ 75,000
|
$ 75,677
|
UPON THE DEATH OF A SOLE OWNER
|
|
Action if the Contract is in the Accumulation Phase
|
Action if the Contract is in the Annuity Phase
|
• If this is an Inherited IRA Contract, the Beneficiary can either:
– continue to receive RMD payments based on the
remaining life expectancy of the deceased Inherited IRA
Owner and the Contract Value as of the Business Day we
receive a Valid Claim, until ten years after the Inherited
IRA Owner’s death at which time we make a lump sum
payment, or
– receive a lump sum payment of the Contract Value as of
the Business Day we receive a Valid Claim.
• For all other Contracts, we pay a death benefit to the
Beneficiary unless the Beneficiary is the surviving spouse and
continues the Contract.
• If the deceased Owner was a Determining Life and the
surviving spouse Beneficiary continues the Contract:
– we increase the Contract Value to equal the Guaranteed
Death Benefit Value if greater and available, and the
death benefit ends,
– the surviving spouse becomes the new Owner,
– the Accumulation Phase continues, and
– upon the surviving spouse’s death, his or her
Beneficiary(ies) receives the Contract Value.
• If the deceased Owner was not a Determining Life, the
Traditional Death Benefit is not available and the
Beneficiary(ies) receives the Contract Value.
|
• The Beneficiary becomes the Payee. If we are still required to
make Annuity Payments under the selected Annuity Option, the
Beneficiary also becomes the new Owner.
• If the deceased was not an Annuitant, Annuity Payments to the
Payee continue. No death benefit is payable.
• If the deceased was the only surviving Annuitant, Annuity
Payments end or continue as follows.
– Annuity Option A or C, payments end when the
guaranteed period ends.
– Annuity Option B, F, or G, payments end.
– For more information on the Annuity Options, please see
section 8.
• If the deceased was an Annuitant and there is a surviving joint
Annuitant, Annuity Payments to the Payee continue during the
lifetime of the surviving joint Annuitant. No death benefit is
payable.
• For a Qualified Contract, the Annuity Payments must end ten
years after the Owner’s death.
|
FOR JOINTLY OWNED CONTRACTS: The sole primary Beneficiary is the surviving Joint Owner regardless of any
other named primary Beneficiaries. If both Joint Owners die
simultaneously, we pay the death benefit to the named
surviving primary Beneficiaries. If there are no named surviving
primary Beneficiaries, we pay the death benefit to the
named surviving contingent Beneficiaries, or equally to the estate of
the Joint Owners if there are no named surviving
contingent Beneficiaries.
|
• An assignment may be a taxable event. In addition, there are other
restrictions on changing the ownership of a
Qualified Contract and Qualified Contracts generally cannot be assigned
absolutely or on a limited basis. You should
consult with your tax adviser before
assigning this Contract.
|
• An assignment will only change the Determining Life (Lives) if it involves removing a Joint Owner due to
divorce, or replacing Joint Owners with a Trust.
|
We do not accept additional Purchase Payments if you
have an Inherited IRA, or Inherited Roth IRA Contract.
|
On your application if you select…
|
Your Index Effective Date will be either…
|
the earliest Index Effective Date
|
• your Issue Date, or
• the first Business Day of the next month if the Issue Date is the
29th, 30th, or 31st of a
month
|
the deferred Index Effective Date
|
• your first Quarterly Contract Anniversary, or
• the next Business Day if the first Quarterly Contract Anniversary
occurs on a non-Business
Day, or the first Business Day of the next month if the first
Quarterly Contract Anniversary
is the 29th, 30th, or 31st of a month
|
• In order to apply Purchase Payments we receive after the Index Effective Date to your selected Index Option(s) on
the next Index Anniversary, we must receive them before the end of the Business Day on the Index Anniversary (or
before the end of the prior
Business Day if the anniversary is a non-Business Day).
|
• The Variable Option is subject to Contract fees and expenses (e.g. M&E charge, contract maintenance charge) and
market risk. Assets you allocate to it may lose value, including any Purchase Payments or other assets we hold in
the Variable Option before
transferring them to your selected Index Options.
|
Variable Account Value increases when….
|
Variable Account Value decreases when….
|
• you add assets to the Variable Option by Purchase Payment
or make allocation instruction changes that transfer Index
Option Value,
• we hold assets in the Variable Option on an interim basis due
to Purchase Payments destined for the Index Option(s), a
Contract Value increase associated with the death of a
Determining Life, or an Index Option becoming temporarily
unavailable, or
• there is positive Fund performance
|
• you take assets out of the Variable Option by
withdrawal (including any financial adviser fees that you
choose to have us pay from this Contract), make allocation
instruction changes that transfer Variable Account Value, or
request an Early Reallocation out of the Variable Option,
• we transfer assets held in the Variable Option on an interim
basis that are destined for the Index Option(s) according to
allocation instructions,
• there is negative Fund performance, or
• we deduct Contract fees and expenses
|
Contract fees and expenses we deduct from the
Variable Option include the M&E charge, contract maintenance charge, and
withdrawal charge as described in section 6,
Expenses. Financial adviser fees that you choose to have us pay from this
Contract are described in section 1, The
Contract.
|
Index Option Values increase when….
|
Index Option Values decrease when….
|
• you add assets to an Index Option by Purchase Payment,
make allocation instruction changes that transfer Contract
Value, or request an Early Reallocation into the Index Option,
• we transfer assets held in the Variable Option on an interim
basis that are destined for the Index Option according to
allocation instructions, or
• you receive a positive Performance Credit or Daily Adjustment
|
• you take assets out of an Index Option by
withdrawal (including any financial adviser fees that you
choose to have us pay from this Contract), make allocation
instruction changes that transfer Contract Value, or request an
Early Reallocation out of the Index Option,
• we transfer assets out of the Index Option on a Term Start
Date because the Index Option became temporarily
unavailable,
• you receive a negative Performance Credit or Daily
Adjustment, or
• we deduct Contract fees and expenses
|
Contract fees and
expenses we deduct from the Index Options include the contract maintenance charge, and withdrawal
charge as described in section 6, Expenses.
Financial adviser fees that you choose to have us pay from this Contract are
described in section 1, The Contract.
|
• The Index Dual Precision Strategy, Index Precision Strategy, and Index Performance Strategy allow negative
Performance Credits. A negative Performance Credit means you can lose principal and previous earnings. The
maximum potential negative
Performance Credit is: -90% with a 10% Buffer, -80% with a 20% Buffer, and -70%
with a 30% Buffer.
|
• Because we calculate Index Returns only on a single date in time, you may experience negative or flat
performance even though the Index you selected for a
given Crediting Method experienced gains through
some, or most, of the Term.
|
• If an Index Performance Strategy Index Option is
“uncapped” for one Term (i.e., we do not declare a Cap for
that Term) it does not mean that we will not declare a
Cap for it on future Term Start Dates. On the next Term
Start Date we can declare a Cap for the next Term, or declare it to be
uncapped.
|
What is the asset protection?
|
|
Index Dual Precision
Strategy
|
• Protection is equal to what is available with the Index Precision
Strategy. Protection may be equal to
or less than what is available with the Index Performance Strategy
depending on the Index Option.
• Buffer absorbs 10% of loss, but you receive a negative Performance
Credit for losses greater than
10%.
• Potential for large losses in any Term.
• More sensitive to large negative market movements because small
negative market movements
within the 10% Buffer result in a positive Performance Credit.
|
What is the asset protection?
|
|
Index Precision Strategy
|
• Protection is equal to what is available with the Index Dual
Precision Strategy. Protection may be
equal to or less than what is available with the Index Performance
Strategy depending on the Index
Option.
• Buffer absorbs 10% of loss, but you receive a negative Performance
Credit for losses greater than
10%.
• Potential for large losses in any Term.
• More sensitive to large negative market movements because small
negative market movements are
absorbed by the 10% Buffer.
|
Index Performance
Strategy
|
• Index Options with a 10% Buffer provide the same protection as the
Index Dual Precision Strategy
and Index Precision Strategy. Index Options with a 20% or 30% Buffer
have more protection than
what is available with the Index Dual Precision Strategy and Index
Precision Strategy.
• Buffer absorbs 10%, 20%, or 30% of loss depending on the Index Option
you select, but you receive
a negative Performance Credit for losses greater than the Buffer.
• Potential for large losses in any Term.
• More sensitive to large negative market movements because small or
moderate negative market
movements are absorbed by the Buffer.
• In extended periods of moderate to large negative market performance,
3-year and 6-year Terms may
provide less protection than the 1-year Terms because, in part, the
Buffer is applied over a longer
period of time.
|
What is the growth opportunity?
|
|
Index Dual Precision
Strategy
|
• Growth opportunity limited by the Trigger Rates.
• May perform best in periods of small negative market movements as it
provides a positive
Performance Credit in these environments while other Crediting Methods
do not.
• Generally less growth opportunity than the Index Precision Strategy
and Index Performance Strategy.
|
Index Precision Strategy
|
• Growth opportunity limited by the Trigger Rates.
• May perform best in periods of small positive market movements.
• Generally more growth opportunity than the Index Dual Precision
Strategy. However, less growth
opportunity than the Index Dual Precision Strategy during periods of
small negative market
movements.
• Growth opportunity may be more or less than the Index Performance
Strategy depending on Caps.
|
Index Performance
Strategy
|
• Growth opportunity limited by the Caps and/or Participation Rates. If we do not declare a Cap for an
Index Option, there is no maximum
limit on the positive Index Return for that Index Option. In
addition, you can receive more than
the positive Index Return if the Participation Rate applies
and is greater than its 100%
minimum. However, the Participation Rate cannot boost Index
Returns beyond a declared Cap.
• May perform best in a strong market.
• 1-year Term with 10% Buffer Index Options, 3-year Term with 10% or
20% Buffer Index Options, and
6-year Term with 10% or 20% Buffer Index Options have the most growth
opportunity.
• Growth opportunity for the 1-year Term with 20% or 30% Buffer may be
less than the Index Dual
Precision Strategy and Index Precision Strategy depending on Trigger
Rates and Caps.
|
What can change within a Crediting Method?
|
|
Index Dual Precision
Strategy
|
• Renewal and Early Reallocation Trigger Rates for existing Contracts
can change on each Term Start
Date.
– 1-year Term has a 5% minimum Trigger Rate.
• The 10% Buffers for the currently available Index Options cannot
change. However, if we add a new
Index Option to your Contract after the Issue Date, we establish the
Buffer for it on the date we add
the Index Option to your Contract. The minimum Buffer is 5% for a new
Index Option.
|
What can change within a Crediting Method?
|
|
Index Precision Strategy
|
• Renewal and Early Reallocation Trigger Rates for existing Contracts
can change on each Term Start
Date.
– 1-year Term has a 5% minimum Trigger Rate.
• The 10% Buffers for the currently available Index Options cannot
change. However, if we add a new
Index Option to your Contract after the Issue Date, we establish the
Buffer for it on the date we add
the Index Option to your Contract. The minimum Buffer is 5% for a new
Index Option.
|
Index Performance
Strategy
|
• Renewal and Early Reallocation Caps and/or Participation Rates for
existing Contracts can change on
each Term Start Date.
– 1-year Term with 30% Buffer has a 3% minimum Cap.
– 1-year Term with 20% Buffer has a 4% minimum Cap.
– 1-year Term with 10% Buffer has a 5% minimum Cap.
– 3-year Term with 30% Buffer has a 9% minimum Cap, and 100% minimum
Participation Rate.
– 3-year Term with 20% Buffer has a 12% minimum Cap, and 100% minimum
Participation Rate.
– 3-year Term with 10% Buffer has a 15% minimum Cap, and 100% minimum
Participation Rate.
– 6-year Term with 30% Buffer has a 18% minimum Cap, and 100% minimum
Participation Rate.
– 6-year Term with 20% Buffer has a 24% minimum Cap, and 100% minimum
Participation Rate.
– 6-year Term with 10% Buffer has a 30% minimum Cap, and 100% minimum
Participation Rate.
• The 10%, 20%, and 30% Buffers for the currently available Index
Options cannot change. However, if
we add a new Index Option to your Contract after the Issue Date, we
establish the Buffer for it on the
date we add the Index Option to your Contract. The minimum Buffer is
5% for a new Index Option.
|
• You participate in any negative Index Return in excess of the Buffer,
which reduces your Contract Value. For
example, for a 10% Buffer we absorb the first -10% of Index Return and
you could lose up to 90% of the Index Option
Value.
|
• Trigger Rates, Caps, and Participation Rates as set by us from
time-to-time may vary substantially based on market
conditions. However, in extreme market environments, it is possible that all Trigger Rates, Caps, and Participation
Rates will be reduced to their
respective minimums of 3%, 4%, 5%, 9%, 12%, 15%, 18%, 24%, 30%, or 100% as
stated in the table above. Note that
the minimum Early Reallocation Trigger Rates or Caps will be at least equal to
these minimums, but could be higher
as discussed later in this section.
|
• If your Contract is within its free look period you may be able to
take advantage of any increase in initial Trigger
Rates, Caps, and/or Participation Rates by cancelling your Contract
and purchasing a new Contract.
|
• If the initial Trigger Rates, Caps, and/or Participation Rates
available on the Index Effective Date are not acceptable
you have the following options.
|
– Cancel your Contract if you are still within the free look period. If
you took a withdrawal that was subject to a
withdrawal charge (including financial adviser fees that you choose to
have us pay from this Contract) we will refund
any previously deducted withdrawal charge upon a free look cancellation.
|
– Request to extend your Index Effective Date if you have not reached
your first Quarterly Contract Anniversary.
|
– If the free look period has expired, request a full withdrawal and
receive the Cash Value. This withdrawal is subject to
withdrawal charges, income taxes, and may also be subject to a 10%
additional federal tax for amounts withdrawn
before age 59 1∕2. If this occurs on or before the Index Effective Date, the Daily Adjustment does not apply.
If this
occurs after the Index Effective Date, you are
subject to the Daily Adjustment.
|
• Trigger Rates, Caps, and Participation Rates can be different from Index Option to Index Option. For example,
Caps for the Index Performance Strategy 1-year Terms can be different
between the S&P 500® Index and the
Nasdaq-100® Index; and Caps for the S&P 500® Index can be
different between 1-year, 3-year, and 6-year Terms on
the Index Performance Strategy. Initial, renewal, and Early Reallocation rates may also be different from
Contract-to-Contract. For example, assume that on May 1, 2026 we set Caps for the Index Performance Strategy
1-year Term with 10% Buffer using the S&P 500® Index as
follows:
|
– 13% initial rate and 12% Early Reallocation rate for new Contracts
issued in 2026,
|
– 14% renewal rate and 14% Early Reallocation rate for existing
Contracts issued in 2025, and
|
– 12% renewal rate and 13% Early Reallocation rate for existing
Contracts issued in 2024.
|
|
First Index Option
|
Second Index Option
|
||
|
Index Option Value
|
Index Option Base
|
Index Option Value
|
Index Option Base
|
Prior to partial withdrawal
|
$ 75,000
|
$ 72,000
|
$ 25,000
|
$ 22,000
|
$10,000 partial withdrawal
|
– $7,500
|
– $7,200
|
– $2,500
|
– $2,200
|
|
|
|
|
|
After partial withdrawal
|
$ 67,500
|
$ 64,800
|
$ 22,500
|
$ 19,800
|
• Amounts removed from the Index Options during the Term for partial withdrawals you take (including any
financial adviser fees that you choose to have us pay
from this Contract) and deductions we make for Contract
fees and expenses do not receive a Performance Credit
on the Term End Date. However, the remaining amount
in the Index Options is eligible for a Performance Credit on the Term
End Date.
|
• You cannot specify from which Allocation Option we deduct Contract fees and expenses; we deduct Contract fees
and expenses from each Allocation Option proportionately based on the
percentage of Contract Value in each
Allocation Option.
|
Crediting Method
and Term Length
|
If Index Value is less than it was on
the
Term Start Date
(i.e., Index Return is negative):
|
If Index Value is equal to or greater
than it was
on the Term Start Date
(i.e., Index Return is zero or positive):
|
Index Dual Precision
Strategy 1-year Term
|
Performance Credit is equal to the Trigger Rate if the
negative Index Return is less than or equal to the
10% Buffer. However, if the negative Index Return is
greater than the 10% Buffer you receive a
Performance Credit equal to the negative Index
Return in excess of the 10% Buffer.
If the Index Return is…
• -8%, the Performance Credit is equal to the Trigger
Rate set on the Term Start Date.
• -12%, the Performance Credit is -2%.
|
Performance Credit is equal to the Trigger Rate set
on the Term Start Date.
|
Index Precision
Strategy 1-year Term
|
Performance Credit is equal to the negative Index
Return in excess of the 10% Buffer.
If the Index Return is…
• -8%, the Performance Credit is zero.
• -12%, the Performance Credit is -2%.
|
Performance Credit is equal to the Trigger Rate set
on the Term Start Date.
|
Index Performance
Strategy 1-year Term
|
Performance Credit is equal to the negative Index
Return in excess of the 10%, 20%, or 30% Buffer.
Assume you select a 1-year Term Index Option with
10% Buffer. If the Index Return for the year is…
• -8%, the Performance Credit is zero.
• -12%, the Performance Credit is -2%.
Instead assume you select a
1-year Term Index
Option with 20% Buffer, and the Index Return for
the Term is…
• -19%, the Performance Credit is 0%.
• -24%, the Performance Credit is -4%.
Instead assume you select a
1-year Term Index
Option with 30% Buffer, and the Index Return for
the Term is…
• -29%, the Performance Credit is 0%.
• -36%, the Performance Credit is -6%.
|
Performance Credit is equal to the Index Return up
to any Cap set on the Term Start Date.
Assume the Cap for the 1-year Term is 8%. If the
Index Return for the year is…
• 0%, the Performance Credit is zero.
• 6%, the Performance Credit is 6%.
• 12%, the Performance Credit is 8%. If instead the
1-year Term is uncapped, the
Performance
Credit is 12%.
|
Crediting Method
and Term Length
|
If Index Value is less than it was on
the
Term Start Date
(i.e., Index Return is negative):
|
If Index Value is equal to or greater
than it was
on the Term Start Date
(i.e., Index Return is zero or positive):
|
Index Performance
Strategy 3-year Term
|
Performance Credit is equal to the negative Index
Return in excess of the 10%, 20%, or 30% Buffer.
Assume you select a 3-year Term Index Option with
10% Buffer. If the Index Return for the Term is…
• -19%, the Performance Credit is -9%.
• -24%, the Performance Credit is -14%.
Instead assume you select a
3-year Term Index
Option with 20% Buffer, and the Index Return for
the Term is…
• -19%, the Performance Credit is 0%.
• -24%, the Performance Credit is -4%.
Instead assume you select a
3-year Term Index
Option with 30% Buffer, and the Index Return for
the Term is…
• -29%, the Performance Credit is 0%.
• -36%, the Performance Credit is -6%.
|
Performance Credit is equal to the Index Return
multiplied by the Participation Rate, up to any Cap
set on the Term Start Date.
Assume the Participation Rate is 100% and the Cap
is 80%. If the Index Return for the Term is…
• 0%, the Performance Credit is zero.
• 65%, the Performance Credit is 65%.
• 90%, the Performance Credit is 80%.
If instead the Participation Rate is
110% and the
3-year Term is uncapped, and the Index Return for
the Term is…
• 0%, the Performance Credit is zero.
• 65%, the Performance Credit is 71.5%.
• 90%, the Performance Credit is 99%.
|
Index Performance
Strategy 6-year Term
|
Performance Credit is equal to the negative Index
Return in excess of the 10%, 20%, or 30% Buffer.
If the Index Return for the Term is…
• -19%, the Performance Credit is -9%.
• -24%, the Performance Credit is -14%.
Instead assume you select a
6-year Term Index
Option with 20% Buffer, and the Index Return for
the Term is…
• -19%, the Performance Credit is 0%.
• -24%, the Performance Credit is -4%.
Instead assume you select a
6-year Term Index
Option with 30% Buffer, and the Index Return for
the Term is…
• -29%, the Performance Credit is 0%.
• -36%, the Performance Credit is -6%.
|
Performance Credit is equal to the Index Return
multiplied by the Participation Rate, up to any Cap
set on the Term Start Date.
Assume the Participation Rate is 100% and the Cap
is 85%. If the Index Return for the Term is…
• 0%, the Performance Credit is zero.
• 65%, the Performance Credit is 65%.
• 90%, the Performance Credit is 85%.
If instead the Participation Rate is
110% and the
6-year Term is uncapped, and the Index Return for
the Term is…
• 0%, the Performance Credit is zero.
• 65%, the Performance Credit is 71.5%.
• 90%, the Performance Credit is 99%.
|
We will not provide advice or notify
you regarding whether you should execute a Performance Lock or the optimal
time for doing so. We will not warn
you if you execute a Performance Lock at a sub-optimal time. We are not
responsible for any losses related
to your decision whether or not to execute a Performance Lock.
|
We will not provide advice or notify
you regarding whether you should execute an Early Reallocation or the optimal
time for doing so. We will not warn
you if you execute an Early Reallocation at a sub-optimal time. We are not
responsible for any losses related
to your decision whether or not to execute an Early Reallocation.
|
Currently, the Contract offers only one variable investment option (the
Variable Option). As such, and given the design
of the Contract, we do not believe there to be a risk of excessive
trading and market timing. However, if we were to offer
multiple variable investment options in the future, they would be
subject to the following provisions.
|
This Contract is not designed for professional market timing
organizations, or other persons using programmed, large, or
frequent transfers, and we may restrict excessive or inappropriate
transfer activity.
|
|
Base Contract Expenses
(as a percentage of the Variable Option’s average net assets)
|
Mortality and Expense Risk (M&E) Charge(1)
|
1.25%
|
Calculating a Withdrawal Charge
|
Example
|
|||
For purposes of calculating any withdrawal charge, we withdraw
Purchase Payments on a “first-in-first-out” (FIFO) basis and we
process withdrawal requests as follows.
|
You make an initial Purchase Payment of $55,000 and make
another Purchase Payment in the first month of the second
Contract Year of $45,000. In the third month of the third
Contract Year, your Contract Value is $110,000 and you
request a $70,000 withdrawal. We withdraw money and
compute the withdrawal charge as follows.
|
|||
1. First, we withdraw from Purchase Payments that we have had
for six or more complete years, which is your Contract’s
withdrawal charge period. This withdrawal is not subject to a
withdrawal charge and it reduces the Withdrawal Charge Basis
dollar for dollar.
|
1. Purchase Payments beyond the withdrawal charge
period. All payments are still within the withdrawal charge
period, so this does not apply.
|
|||
2. Amounts available as a Penalty-Free Withdrawal. This includes
partial withdrawals you take during the Accumulation Phase
under the free withdrawal privilege or waiver of withdrawal
charge benefit, and RMD payments you take under our
minimum distribution program. Penalty-Free Withdrawals are
not subject to a withdrawal charge, but they reduce the
Withdrawal Charge Basis dollar for dollar, and are withdrawn
from Purchase Payments on a FIFO basis.
|
2. Amounts available as a Penalty-Free Withdrawal. You did
not take any other withdrawals this year, so the entire free
withdrawal privilege (10% of your total Purchase Payments,
or $10,000) is available to you without incurring a withdrawal
charge. We also deduct this $10,000 from the first Purchase
Payment.
|
|||
3. Next, on a FIFO basis, we withdraw from Purchase Payments
within your Contract’s withdrawal charge period and assess a
withdrawal charge. Withdrawing payments on a FIFO basis
may help reduce the total withdrawal charge because the
charge declines over time. We determine your total withdrawal
charge by multiplying each payment by its applicable
withdrawal charge percentage and then totaling the charges.
These withdrawals reduce the Withdrawal Charge Basis.
The withdrawal charge as a percentage of each Purchase
Payment withdrawn is as follows.
|
3. Purchase Payments within the withdrawal charge period
on a FIFO basis. The total amount we withdraw from the
first Purchase Payment is $45,000, which is subject to a 6%
withdrawal charge, and you receive $42,300. We determine
this amount as follows:
(amount withdrawn) x (1 – withdrawal charge) = the
amount you receive, or:
$45,000 x 0.94 = $42,300
The total amount we withdraw from the second Purchase
Payment is $19,032, which is subject to a 7% withdrawal
charge, and you receive $17,700. We determine this amount
as follows:
(amount withdrawn) x (1 – withdrawal charge) = the
amount you receive, or:
$19,032 x 0.93 = $17,700
|
|||
Number of Complete
Years Since
Purchase Payment
|
Withdrawal Charge
Amount
|
|
||
0
1
2
3
4
5
6 years or more
|
8%
7%
6%
5%
3%
1%
0%
|
|
Calculating a Withdrawal Charge
|
Example
|
|||
4. Finally, we withdraw any Contract earnings. This withdrawal is
not subject to a withdrawal charge and it does not reduce the
Withdrawal Charge Basis.
|
4. Contract earnings. We already withdrew your requested
amount, so this does not apply.
In total we withdrew $74,032 from your Contract, of
which you received $70,000 and paid a withdrawal
charge of $4,032. We also reduced the 1st Purchase
Payment from $55,000 to $0, and your 2nd Purchase
Payment from $45,000 to $25,968 ($45,000 – $19,032).
Please note that this example may
differ from your
actual results due to rounding.
|
• Upon a full withdrawal, the free withdrawal privilege is not available to you, and we apply a withdrawal charge
against Purchase Payments that are still within the withdrawal charge
period, including amounts previously
withdrawn under the free withdrawal privilege. On a full withdrawal, your Withdrawal Charge Basis may be
greater than your Contract Value because the following
reduce your Contract Value, but do not reduce your
Withdrawal Charge Basis:
|
– deductions we make for Contract fees and expenses other than the withdrawal charge, and/or
|
– poor performance.
|
This also means that upon a full
withdrawal you may not receive any money.
|
• Withdrawals (including any financial adviser fees that you choose to have us pay from this Contract) are subject to
ordinary income taxes, and may also be subject to a 10%
additional federal tax for amounts withdrawn before
age 59 1∕2. The amount of Contract Value available for withdrawal is also affected by the Daily Adjustment
(which can be negative) unless taken
on a Term End Date. If you have Index Options with different Term End
Dates, there may be no time you can
take a withdrawal without application of at least one Daily Adjustment.
Please consult with your Financial
Professional before requesting us to pay financial adviser fees from this
Contract rather than from other
assets you may have.
|
• For tax purposes, and in most instances, withdrawals from Non-Qualified Contracts are considered to come from
earnings first, not Purchase Payments.
|
|
Index Dual Precision Strategy, Index Precision Strategy, and
Index Performance Strategy
|
Daily Adjustment Maximum Potential Loss
|
99%
|
(as a percentage of Index Option Value, applies for distributions
from an Index Option before any Term End Date)
|
|
• Withdrawals are subject to a withdrawal charge, income taxes, and may also be subject to a 10% additional federal
tax for amounts withdrawn before age 59 1∕2. The amount of Contract Value available for
withdrawal may also be
affected by the Daily Adjustment (which can be negative). Please consult with your Financial Professional
before
requesting us to pay financial
adviser fees from this Contract rather than from other assets you may have.
|
• Joint Owners: We send one check payable to both Joint Owners and we tax
report to each Joint Owner individually.
Tax reporting each Joint Owner
individually can create a discrepancy in taxation if only one Joint Owner is under
age 59 1∕2 because that Joint Owner may be subject to the 10% additional federal tax.
|
• We may be required to provide information about you or your Contract to government regulators. We may also be
required to stop Contract disbursements and thereby refuse any transfer
requests, and refuse to pay any withdrawals
(including a full withdrawal), or death benefits until we receive
instructions from the appropriate regulator. If,
pursuant to SEC rules, the AZL Government Money Market Fund suspends
payment of redemption proceeds in
connection with a fund liquidation, we will delay payment of any
transfer, full or partial withdrawal, or death benefit
from the Variable Option until the Fund is liquidated.
|
The free withdrawal privilege is not available upon a
full withdrawal.
|
• You should consult a tax adviser before purchasing a Qualified Contract that is subject to RMD payments.
|
• The minimum distribution program is not available if you have a Qualified Contract purchased through a
qualified plan.
|
• If you do not choose an Annuity Option before the Annuity Date, we make Annuity Payments to the Payee
under Annuity Option C with ten years of guaranteed
monthly payments.
|
• For Owners younger than age 59 1∕2, Annuity
Payments may be subject to a 10% additional federal tax.
|
• For a Qualified Contract, the Annuity Payments must end ten years after the Owner’s death.
|
• If Annuity Payments would be less than $100, we reserve the right to require you to take a full withdrawal and
your Contract will then terminate. We do not assess a
withdrawal charge on this full withdrawal.
|
• If on the maximum Annuity Date your Contract Value is greater than zero, you must annuitize the Contract.
We notify you of your available options in writing 60 days in advance. If on your maximum Annuity Date you have
not selected an Annuity Option, we
make payments under Annuity Option C with ten years of guaranteed monthly
payments. Upon annuitization you no longer have Contract Value or a death benefit, and you cannot receive any
other periodic withdrawals or payments other than Annuity Payments.
|
Standard Benefits (No Additional Charge)
|
||
Name of
Benefit
|
Purpose
|
Brief Description of
Restrictions/Limitations
|
Free
Withdrawal
Privilege
|
Allows you to withdraw up to 10% of your total
Purchase Payments each Contract Year without
incurring a withdrawal charge.
|
• Only available during the Accumulation Phase.
• Not available upon a full withdrawal.
• Unused free withdrawal amounts not available in
future years.
• Program withdrawals may be subject to negative
Daily Adjustments.
• Program withdrawals are subject to income taxes,
and may also be subject to a 10% additional
federal tax for amounts withdrawn before age
59 1∕2.
|
Minimum
Distribution
Program
|
Allows you to automatically take withdrawals to
satisfy the minimum distribution requirements (RMD)
imposed by the Internal Revenue Code.
|
• Only available during the Accumulation Phase.
• Only available to IRA or SEP IRA Contracts.
• Generally required for Inherited IRA and Inherited
Roth IRA Contracts.
• Program withdrawals count against free withdrawal
privilege.
• Program withdrawals may be subject to negative
Daily Adjustments.
• Program withdrawals are subject to income taxes.
• Program withdrawals may be monthly, quarterly,
semi-annual or annual, unless you have less than
$25,000 in Contract Value, in which case only
annual payments are available.
• We reserve the right to discontinue or modify the
program subject to the requirements of law.
|
Financial
Adviser
Fees
|
If you have a financial adviser and want to pay their
financial adviser fees from this Contract, you can
instruct us to withdraw the fee from your Contract
and pay it to your Financial Professional or Financial
Professional’s firm as instructed.
|
• Only available during the Accumulation Phase.
• Financial adviser fees are in addition to the
Contract’s fees and expenses.
• Deductions for financial adviser fees are treated as
withdrawals under the Contract.
• Program withdrawals count against free withdrawal
privilege.
• Program withdrawals may be subject to negative
Daily Adjustments.
• Program withdrawals are subject to withdrawal
charges, income taxes, and may also be subject to
a 10% additional federal tax for amounts
withdrawn before age 59 1∕2.
• We reserve the right to discontinue or modify the
program.
• See section 1 for an example of how deduction of
financial adviser fees impact the Contract.
|
Standard Benefits (No Additional Charge)
|
||
Name of
Benefit
|
Purpose
|
Brief Description of
Restrictions/Limitations
|
Waiver of
Withdrawal
Charge
Benefit
|
Waives withdrawal charges if you become confined
to a skilled nursing facility or hospital.
|
• Only available during the Accumulation Phase.
• Confinement must begin after the first Contract
Year, be for at least 90 consecutive days, and
requires proof of stay.
• Requires physician certification.
• Not available if any Owner was confined on the
Issue Date.
• Program withdrawals count against free withdrawal
privilege.
• Program withdrawals may be subject to negative
Daily Adjustments.
• Program withdrawals are not subject to withdrawal
charges, but are subject to income taxes, and may
also be subject to a 10% additional federal tax for
amounts withdrawn before age 59 1∕2.
• State variations may apply.
|
Traditional
Death Benefit
|
Provides a death benefit equal to the greater of the
Contract Value, or Guaranteed Death Benefit Value.
The Guaranteed Death Benefit Value is total
Purchase Payments adjusted for withdrawals.
An example of the death benefit provided by the
Traditional Death Benefit is included in section 10,
Death Benefit.
An example of how deduction of financial adviser
fees impact the death benefit is included in section 1.
|
• Benefit only available during the Accumulation
Phase.
• Withdrawals, including any negative Daily
Adjustments, may significantly reduce the benefit
as indicated in section 1, Financial Adviser Fee
Deduction Example.
• Restrictions on Purchase Payments may limit the
benefit.
• Annuitizing the Contract will end the benefit.
|
Standard Benefits (No Additional Charge)
|
||
Name of
Benefit
|
Purpose
|
Brief Description of
Restrictions/Limitations
|
Performance
Lock
|
Allows you to capture the current Index Option Value
during the Term for an Index Option. Can help
eliminate doubt about future Index performance and
possibly limit the impact of negative performance.
Can allow you to transfer out of an Index Option
before the Term End Date.
A Performance Lock example is included in section
4, Valuing Your Contract — Performance Locks.
|
• Available during the Accumulation Phase.
• Performance Locks must be executed before the
Term End Date.
• If a Performance Lock is executed, the locked
Index Option will no longer participate in Index
performance (positive or negative) for the
remainder of the Term, and will not receive a
Performance Credit on the Term End Date.
• You will not know your locked Index Option Value
in advance.
• The locked Index Option Value will reflect a Daily
Adjustment.
• If a Performance Lock is executed when the Daily
Adjustment has declined, it will lock in any loss.
• A Performance Lock can be executed only once
each Term for each Index Option.
• Cannot execute a Performance Lock for only a
portion of the Index Option Value.
• Deductions (e.g. withdrawals, fees) decrease the
locked Index Option Value.
• Cannot transfer locked Index Option Value until the
next Index Anniversary that occurs on or
immediately after the Lock Date unless you
execute an Early Reallocation.
• We will not provide advice or notify you
regarding whether you should execute a
Performance Lock or the optimal time for doing
so.
• We will not warn you if you execute a
Performance Lock at a sub-optimal time.
• We are not responsible for any losses related
to your decision whether or not to execute a
Performance Lock.
|
Early Reallocation
|
Allows you to transfer from the Variable Option
and/or locked Index Options on days other than an
Index Anniversary.
An Early Reallocation Request example is included
in section 4, Valuing Your Contract — Early
Reallocations.
|
• Available during the Accumulation Phase.
• Early Reallocation requests are not accepted
before the Index Effective Date, or within 14
calendar days before an Index Anniversary; Index
Performance Strategy 6-year Term Index Options
and the Variable Option are not available as
destinations for an Early Reallocation transfer; and
you are limited to two Early Reallocation requests
each Index Year.
• All Index Options can be temporarily unavailable
for Early Reallocation at any time, which means
there may be times when Early
Reallocation is
unavailable to you.
• We will not provide advice or notify you
regarding whether you should execute an Early
Reallocation or the optimal time for doing so.
• We will not warn you if you execute an Early
Reallocation at a sub-optimal time.
• We are not responsible for any losses related
to your decision whether or not to execute an
Early Reallocation.
|
We base the Guaranteed Death Benefit Value on the first death of a
Determining Life (or Lives). This means that upon
the death of an Owner (or Annuitant if the Owner is a non-individual),
if a surviving spouse continues the Contract, the
Guaranteed Death Benefit Value is no
longer available. Also, if you and the Determining Life (Lives) are different
individuals and you die first, the
Guaranteed Death Benefit Value is not available to your Beneficiary(ies).
|
Type of Contract
|
Persons and Entities that can own the Contract
|
IRA
|
Must have the same individual as Owner and Annuitant.
|
Roth IRA
|
Must have the same individual as Owner and Annuitant.
|
SEP IRA
|
Must have the same individual as Owner and Annuitant.
|
Certain Code Section 401 Plans
|
A qualified retirement plan is the Owner and the Annuitant must be an individual who is a
participant in the plan. If the qualified retirement plan is a defined benefit plan, the
individual
must be the only participant in the plan.
We may determine which types of qualified retirement plans are eligible to purchase this
Contract.
|
Inherited IRA and Inherited Roth IRA
|
Must have the same individual as Owner and Annuitant. The deceased owner of the
previously held tax-qualified arrangement will also be listed in the titling of the Contract.
|
Name(1)
|
Title
|
Allocation
Percentages
|
Jasmine M. Jirele
|
Chair and Chief
Executive Officer
|
5.00%
|
William E. Gaumond
|
Chief Financial Officer
and Treasurer
|
5.00%
|
Compensation Element
|
Description
|
Objective
|
Base Salary
|
Fixed rate of pay that compensates employees for fulfilling their
basic job responsibilities. For NEOs, increases are generally
provided in the case of a significant increase in responsibilities
or a significant discrepancy versus the market.
|
Attract and retain high-caliber
leadership.
|
Annual Incentive Plan
|
Incentive compensation that promotes and rewards the
achievement of annual performance objectives through awards
under the Allianz Life Annual Incentive Plan (“AIP”).
|
• Link compensation to annual
performance results.
• Attract and motivate
high-caliber leadership.
• Align the interests of NEOs
and our stockholder.
|
Performance-Based Equity
Incentives
|
Incentive compensation through restricted stock unit awards
made under the Allianz Equity Incentive Plan (“AEI”) that
promotes and rewards the achievement of long term
performance objectives.
|
• Retain high-caliber leadership
with multi-year vesting.
• Align the interests of NEOs
and our stockholder.
|
Severance Arrangements
|
Severance payments to employees, including NEOs, under
certain company-initiated termination events.
|
Compensate employees for
situations where the employee’s
employment is involuntarily
terminated in a qualifying
termination of employment.
|
Perquisites-Benefits
|
Perquisites provided to our NEOs include employer matching
contributions to the NEOs’ accounts in the 401(k) plan and may
also include the payment of life insurance premiums, relocation
reimbursements, and reimbursements for financial planning, tax
preparation services, and spousal travel expenses.
|
Provide market competitive total
compensation package.
|
Name and Principal
Position
(a)
|
Year
(b)
|
NY Allocation %
|
Salary
(c)
|
Bonus
(d)
|
Stock
Awards
(e)(1)
|
Non-Equity
Incentive Plan Compensation
(g)
|
All Other
Compensation
(i)(2)
|
Total
(j)
|
Jasmine M. Jirele
Chair and Chief Executive
Officer
|
2023
|
5.00%
|
$40,000
|
$0
|
$82,012
|
$54,674
|
$2,274
|
$178,960
|
2022
|
5.00%
|
$37,500
|
$10,000
|
$67,444
|
$44,963
|
$1,191
|
$161,097
|
|
2021
|
2.50%
|
$14,049
|
$9,750
|
$26,708
|
$17,805
|
$563
|
$68,874
|
|
William E. Gaumond
Chief Financial Officer and
Treasurer
|
2023
|
5.00%
|
$26,631
|
$10,000
|
$34,491
|
$22,994
|
$2,275
|
$96,391
|
2022
|
5.00%
|
$25,261
|
$0
|
$47,125
|
$21,417
|
$1,242
|
$95,045
|
|
2021
|
5.00%
|
$23,795
|
$15,000
|
$38,548
|
$25,699
|
$1,122
|
$104,163
|
Name
|
Year
|
Milestone/
Anniversary/
Recognition
|
Life
Insurance
Premiums
|
Employer
Match to
401(k) Plan
|
ASAAP
Contribution
|
Other
Compensation
|
Total
|
Jasmine M. Jirele
|
2023
|
--
|
$36
|
$1,125
|
$113
|
$1,000
|
$2,274
|
2022
|
$13
|
$34
|
$1,025
|
$119
|
--
|
$1,191
|
|
2021
|
$9
|
$10
|
$488
|
$56
|
--
|
$563
|
|
William E. Gaumond
|
2023
|
--
|
$38
|
$1,238
|
--
|
$1,000
|
$2,275
|
2022
|
$64
|
$35
|
$1,025
|
$119
|
--
|
$1,242
|
|
2021
|
--
|
$34
|
$975
|
$113
|
--
|
$1,122
|
Name
(a)
|
Grant Date
(b)
|
Estimated Future Payouts Under
Non-Equity
Incentive Plan Awards(1)
|
Estimated Future Payouts Under Equity
Incentive
Plan Awards(2,3)
|
||||
Threshold ($)
(c)
|
Target ($)
(d)
|
Maximum ($)
(e)
|
Threshold ($)
(f)
|
Target ($)
(g)
|
Maximum ($)
(h)
|
||
Jasmine M. Jirele
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$66,000
|
$297,000
|
AIP Award
|
|
$0
|
$44,000
|
$66,000
|
|
|
|
William E. Gaumond
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$28,766
|
$129,447
|
AIP Award
|
|
$0
|
$19,177
|
$28,766
|
|
|
|
Name
(a)
|
RSUs
|
|
Number of RSUs
That Have Not
Vested
(g)(1,2)
|
Market Value of
RSUs That Have
Not Vested
(h)(3)
|
|
Jasmine M. Jirele
|
|
|
|
94.300
|
$25,254
|
|
120.350
|
$32,231
|
|
309.750
|
$82,954
|
|
368.550
|
$98,701
|
William E. Gaumond
|
|
|
|
97.400
|
$26,085
|
|
123.150
|
$32,981
|
|
223.550
|
$59,869
|
|
257.500
|
$68,961
|
Name
|
Stock Awards
|
|
Number of
Shares
Acquired
on Vesting (#)
|
Value Realized
on Vesting ($)(1)
|
|
Jasmine M. Jirele
|
73.350
|
17,067
|
William E. Gaumond
|
76.900
|
17,894
|
NEOs
|
Lump Sum Payment
|
Jasmine M. Jirele
|
$60,000
|
William E. Gaumond
|
$40,388
|
Name
(a)
|
Fees Earned or
Paid in Cash
($)(1)
(b)
|
Total
($)
(h)
|
Jasmine M. Jirele(2)
Chair and Chief Executive
Officer
|
N/A
|
N/A
|
William E. Gaumond(2)
Chief Financial Officer and
Treasurer
|
N/A
|
N/A
|
Eric J. Thomes(2)
President
|
N/A
|
N/A
|
Jesse J. Kling(3)
Vice President, Appointed
Actuary
|
N/A
|
N/A
|
Lorraine Lods(2)
Non-Independent Director
|
N/A
|
N/A
|
Ronald M. Clark(3)
Independent Director
|
$35,000
|
$35,000
|
Martha Clark Goss(3)
Independent Director
|
$50,000
|
$50,000
|
Gary A. Smith(3)
Non-Independent Director
|
$35,000
|
$35,000
|
Kevin E. Walker
Independent Director
|
$35,000
|
$35,000
|
Investment Objectives
|
Fund Adviser/Subadviser
|
Current
Expenses
|
Average Annual Total Returns
(as of December 31, 2023)
|
||
1 Year
|
5 Years
|
10 Years
|
|||
Current income consistent with
stability of principal
|
AZL®
Government Money
Market Fund(1)
Adviser: Allianz Investment
Management LLC
Subadviser: BlackRock
Advisors, LLC
|
0.87%
|
4.28%
|
1.32%
|
0.77%
|
Part I |
Year ended December 31, | ||||||||||||||||||||||||||||||||
Selected income data | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 972,773 | 658,839 | 689,602 | 431,944 | 376,919 | ||||||||||||||||||||||||||
Net investment income | 20,031 | 18,100 | 16,177 | 18,028 | 19,866 | |||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 1,791 | 1,146 | 578 | 291 | 181 | |||||||||||||||||||||||||||
Fees from separate accounts | 54,306 | 58,894 | 66,792 | 66,045 | 68,960 | |||||||||||||||||||||||||||
Total income | 1,048,901 | 736,979 | 773,149 | 516,308 | 465,926 | |||||||||||||||||||||||||||
Policyholder benefits and surrenders | 549,361 | 274,066 | 281,533 | 244,532 | 255,885 | |||||||||||||||||||||||||||
Change in aggregate reserves | (32,581) | 76,056 | (17,165) | 1,842 | 2,503 | |||||||||||||||||||||||||||
General and administrative and commission | 108,020 | 82,936 | 78,354 | 56,875 | 52,630 | |||||||||||||||||||||||||||
Net transfers to separate accounts | 396,569 | 351,286 | 358,538 | 186,015 | 134,980 | |||||||||||||||||||||||||||
Total benefits and other expenses | 1,021,369 | 784,344 | 701,260 | 489,264 | 445,998 | |||||||||||||||||||||||||||
Income tax expense (benefit) | (1,665) | 3,586 | 6,319 | 1,280 | (7,343) | |||||||||||||||||||||||||||
Net realized capital (loss) gain | (41,157) | 22,638 | (59,957) | (41,220) | (70,095) | |||||||||||||||||||||||||||
Net (loss) income | (11,960) | (28,313) | 5,613 | (15,456) | (42,824) | |||||||||||||||||||||||||||
Capital and Surplus: | ||||||||||||||||||||||||||||||||
Change in unrealized capital (loss) gain | (7,720) | 4,843 | 1,534 | (1,845) | (8,937) | |||||||||||||||||||||||||||
Other change in capital & surplus | 3,316 | 2,024 | (106) | 1,934 | (649) | |||||||||||||||||||||||||||
Capital contribution from parent | 30,000 | 30,000 | — | — | — | |||||||||||||||||||||||||||
Net change in capital & surplus | $ | 13,636 | 8,554 | 7,041 | (15,367) | (52,410) | ||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. |
As of December 31, | ||||||||||||||||||||||||||||||||
Selected balance sheet data | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Total cash and invested assets | $ | 650,763 | 671,072 | 610,691 | 590,406 | 596,501 | ||||||||||||||||||||||||||
Investment income due and accrued | 5,071 | 4,719 | 4,480 | 4,744 | 4,921 | |||||||||||||||||||||||||||
Other admitted assets | 24,431 | 8,914 | 9,085 | 8,604 | 12,922 | |||||||||||||||||||||||||||
Separate account assets | 5,399,495 | 4,347,526 | 4,447,304 | 3,773,866 | 3,232,062 | |||||||||||||||||||||||||||
Total admitted assets | 6,079,760 | 5,032,231 | 5,071,560 | 4,377,620 | 3,846,406 | |||||||||||||||||||||||||||
Total policyholder liabilities | 530,368 | 550,065 | 473,598 | 490,011 | 487,107 | |||||||||||||||||||||||||||
Other liabilities | (35,303) | (40,924) | (12,352) | (42,226) | (44,099) | |||||||||||||||||||||||||||
Separate account liabilities | 5,399,495 | 4,347,526 | 4,447,304 | 3,773,866 | 3,232,062 | |||||||||||||||||||||||||||
Total liabilities | 5,894,560 | 4,856,667 | 4,908,550 | 4,221,651 | 3,675,070 | |||||||||||||||||||||||||||
Total capital and surplus | $ | 185,200 | 171,564 | 163,010 | 155,969 | 171,336 |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 972,773 | 658,839 | 689,602 | $ | 313,934 | 47.6 | % | $ | (30,763) | (4.5) | % | |||||||||||||||||||||||||||||
Net investment income | 20,031 | 18,100 | 16,177 | 1,931 | 10.7 | 1,923 | 11.9 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 1,791 | 1,146 | 578 | 645 | 56.3 | 568 | 98.3 | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 54,306 | 58,894 | 66,792 | (4,588) | (7.8) | (7,898) | (11.8) | ||||||||||||||||||||||||||||||||||
Total income | 1,048,901 | 736,979 | 773,149 | 311,922 | 42.3 | (36,170) | (4.7) | ||||||||||||||||||||||||||||||||||
Benefits and other expenses:
|
|||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 549,361 | 274,066 | 281,533 | 275,295 | 100.4 | (7,467) | (2.7) | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | (32,581) | 76,056 | (17,165) | (108,637) | (142.8) | 93,221 | 543.1 | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 108,020 | 82,936 | 78,354 | 25,084 | 30.2 | 4,582 | 5.8 | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | 396,569 | 351,286 | 358,538 | 45,283 | 12.9 | (7,252) | (2.0) | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 1,021,369 | 784,344 | 701,260 | 237,025 | 30.2 | 83,084 | 11.8 | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | 27,532 | (47,365) | 71,889 | 74,897 | 158.1 | (119,254) | (165.9) | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (1,665) | 3,586 | 6,319 | (5,251) | (146.4) | (2,733) | (43.3) | ||||||||||||||||||||||||||||||||||
Net realized capital (loss) gain | (41,157) | 22,638 | (59,957) | (63,795) | (281.8) | 82,595 | 137.8 | ||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (11,960) | (28,313) | 5,613 | $ | 16,353 | 57.8 | % | $ | (33,926) | (604.4) | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital (loss) gain | $ | (7,720) | 4,843 | 1,534 | $ | (12,563) | (259.4) | % | $ | 3,309 | 215.7 | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | 3,316 | 2,024 | (106) | 1,292 | 63.8 | 2,130 | 2,009.4 | ||||||||||||||||||||||||||||||||||
Capital contribution from parent | 30,000 | 30,000 | — | — | — | 30,000 | NM^ | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 13,636 | 8,554 | 7,041 | $ | 5,082 | 59.4 | % | $ | 1,513 | 21.5 | % | |||||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. | |||||||||||||||||||||||||||||||||||||||||
^ Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Deposits and gross premiums written: | |||||||||||||||||||||||||||||||||||||||||
Individual Annuities | $ | 967,460 | 653,562 | 685,610 | $ | 313,898 | 48.0 | % | $ | (32,048) | (4.7) | % | |||||||||||||||||||||||||||||
Other | 6,719 | 5,492 | 4,416 | 1,227 | 22.3 | 1,076 | 24.4 | ||||||||||||||||||||||||||||||||||
Total | $ | 974,179 | 659,054 | 690,026 | $ | 315,125 | 47.8 | % | $ | (30,972) | (4.5) | % | |||||||||||||||||||||||||||||
In-force: | |||||||||||||||||||||||||||||||||||||||||
Individual Annuities | $ | 5,642,883 | 4,654,719 | 4,797,886 | $ | 988,164 | 21.2 | % | $ | (143,167) | (3.0) | % | |||||||||||||||||||||||||||||
Other | 2,921,758 | 1,837,298 | 750,332 | 1,084,460 | 59.0 | 1,086,966 | 144.9 | ||||||||||||||||||||||||||||||||||
Total | $ | 8,564,641 | 6,492,017 | 5,548,218 | $ | 2,072,624 | 31.9 | % | $ | 943,799 | 17.0 | % |
Year ended December 31, | % change | ||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||
Stock Index | |||||||||||||||||||||||||||||
S&P 500 | 24.23% | (19.44)% | 26.89% | 43.67% | (46.33)% | ||||||||||||||||||||||||
NASDAQ 100 | 53.81% | (32.97)% | 26.63% | 86.78% | (59.60)% |
Year ended December 31, | Basis point (bps) change | ||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||
Interest Rates | |||||||||||||||||||||||||||||
Swap rate - 10 year | 3.48% | 3.84% | 1.58% | (36) bps | 226 bps | ||||||||||||||||||||||||
Swap rate - 20 year | 3.51% | 3.74% | 1.76% | (23) bps | 198 bps |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 969,768 | 655,804 | 686,652 | $ | 313,964 | 47.9 | % | $ | (30,848) | (4.5) | % | |||||||||||||||||||||||||||||
Net investment income | 15,527 | 13,899 | 12,181 | 1,628 | 11.7 | 1,718 | 14.1 | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 54,306 | 58,894 | 66,792 | (4,588) | (7.8) | (7,898) | (11.8) | ||||||||||||||||||||||||||||||||||
Total income | 1,039,601 | 728,597 | 765,625 | 311,004 | 42.7 | (37,028) | (4.8) | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 546,381 | 271,102 | 279,788 | 275,279 | 101.5 | (8,686) | (3.1) | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | $ | (35,645) | 71,289 | (25,127) | $ | (106,934) | (150.0) | % | $ | 96,416 | 383.7 | % | |||||||||||||||||||||||||||||
General and administrative and commission | 104,727 | 79,959 | 76,484 | 24,768 | 31.0 | 3,475 | 4.5 | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | 396,569 | 351,286 | 358,538 | 45,283 | 12.9 | (7,252) | (2.0) | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 1,012,032 | 773,636 | 689,683 | 238,396 | 30.8 | 83,953 | 12.2 | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | 27,569 | (45,039) | 75,942 | 72,608 | 161.2 | (120,981) | (159.3) | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (1,668) | 3,409 | 6,675 | (5,077) | (148.9) | % | (3,266) | (48.9) | % | ||||||||||||||||||||||||||||||||
Net realized capital (loss) gain | (41,149) | 22,688 | (59,965) | (63,837) | (281.4) | 82,653 | 137.8 | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (11,912) | (25,760) | 9,302 | $ | 13,848 | 53.8 | % | $ | (35,062) | (376.9) | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital (loss) gain | $ | (7,946) | 4,997 | 1,627 | $ | (12,943) | (259.0) | % | $ | 3,370 | 207.1 | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | 2,870 | 1,756 | (88) | 1,114 | 63.4 | 1,844 | 2,095.5 | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | (16,988) | $ | (19,007) | $ | 10,841 | $ | 2,019 | 10.6 | % | $ | (29,848) | (275.3) | % | |||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. | |||||||||||||||||||||||||||||||||||||||||
^Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations | $ | 3,005 | 3,035 | 2,950 | $ | (30) | (1.0) | % | $ | 85 | 2.9 | % | |||||||||||||||||||||||||||||
Net investment income | 4,504 | 4,201 | 3,996 | 303 | 7.2 | 205 | 5.1 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 1,791 | 1,146 | 578 | 645 | 56.3 | 568 | 98.3 | ||||||||||||||||||||||||||||||||||
Total income | 9,300 | 8,382 | 7,524 | 918 | 11.0 | 858 | 11.4 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 2,980 | 2,964 | 1,745 | 16 | 0.5 | 1,219 | 69.9 | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 3,064 | 4,767 | 7,962 | (1,703) | (35.7) | (3,195) | (40.1) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 3,293 | 2,977 | 1,870 | 316 | 10.6 | 1,107 | 59.2 | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 9,337 | 10,708 | 11,577 | (1,371) | (12.8) | (869) | (7.5) | ||||||||||||||||||||||||||||||||||
Pretax (loss) income
|
(37) | (2,326) | (4,053) | 2,289 | 98.4 | 1,727 | 42.6 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 2 | 176 | (356) | (174) | (98.9) | 532 | 149.4 | ||||||||||||||||||||||||||||||||||
Net realized capital (loss) gain | (8) | (50) | 8 | 42 | 84.0 | (58) | (725.0) | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (47) | (2,552) | (3,689) | $ | 2,505 | 98.2 | % | $ | 1,137 | 30.8 | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 226 | (154) | (93) | $ | 380 | 246.8 | % | $ | (61) | (65.6) | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | 446 | 268 | (18) | 178 | 66.4 | % | 286 | 1,588.9 | |||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 625 | (2,438) | (3,800) | $ | 3,063 | 125.6 | $ | 1,362 | 35.8 | |||||||||||||||||||||||||||||||
Year ended December 31, | Increase (decrease) and % change | ||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Capital Contribution from parent | $ | 30,000 | 30,000 | — | $ | — | — | % | $ | 30,000 | NM* | ||||||||||||||||||||||||||||||
*Not meaningful |
2023 | 2022 | ||||||||||||||||||||||
Carrying Value | % of total | Carrying Value | % of total | ||||||||||||||||||||
Bonds | $ | 618,672 | 95.1 | % | $ | 647,422 | 96.5 | % | |||||||||||||||
Cash and cash equivalents | 31,012 | 4.8 | 22,009 | 3.3 | |||||||||||||||||||
Policy loans | 193 | — | 185 | — | |||||||||||||||||||
Derivative assets | 26 | — | — | — | |||||||||||||||||||
Receivables for securities | 860 | 0.1 | 1,456 | 0.2 | |||||||||||||||||||
Total cash and invested assets | $ | 650,763 | 100.0 | % | $ | 671,072 | 100.0 | % |
2023 | |||||||||||||||||||||||
NAIC Classes | Fair Value | % of Total | Amortized Cost | % of Total | |||||||||||||||||||
1 | $ | 390,284 | 67.2 | % | $ | 419,486 | 67.8 | % | |||||||||||||||
2 | 184,922 | 31.9 | 194,060 | 31.4 | |||||||||||||||||||
Investment grade | 575,206 | 99.1 | 613,546 | 99.2 | |||||||||||||||||||
3 | 5,082 | 0.9 | 5,126 | 0.8 | |||||||||||||||||||
4 | — | — | — | — | |||||||||||||||||||
5 | — | — | — | — | |||||||||||||||||||
6 | — | — | — | — | |||||||||||||||||||
Below investment grade | 5,082 | 0.9 | 5,126 | 0.8 | |||||||||||||||||||
Total | $ | 580,288 | 100.0 | % | $ | 618,672 | 100.0 | % |
2022 | |||||||||||||||||||||||
NAIC Classes | Fair Value | % of Total | Amortized Cost | % of Total | |||||||||||||||||||
1 | $ | 402,120 | 68.3 | % | $ | 442,762 | 68.4 | % | |||||||||||||||
2 | 180,165 | 30.6 | 198,397 | 30.6 | |||||||||||||||||||
Investment grade | 582,285 | 98.9 | 641,159 | 99.0 | |||||||||||||||||||
3 | 6,242 | 1.1 | 6,263 | 1.0 | |||||||||||||||||||
4 | — | — | — | — | |||||||||||||||||||
5 | — | — | — | — | |||||||||||||||||||
6 | — | — | — | — | |||||||||||||||||||
Below investment grade | 6,242 | 1.1 | 6,263 | 1.0 | |||||||||||||||||||
Total | $ | 588,527 | 100.0 | % | $ | 647,422 | 100.0 | % |
2023 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 72,012 | 100.0 | % | 2023 | $ | 1,543 | 2.1 | % | |||||||||||||||||
2 | — | — | 2022 | 1,709 | 2.4 | |||||||||||||||||||||
3 | — | — | 1 | 2021 | — | — | ||||||||||||||||||||
4 | — | — | 2020 | 2,450 | 3.4 | |||||||||||||||||||||
5 | — | — | 2019 and prior | 66,310 | 92.1 | |||||||||||||||||||||
6 | — | — | $ | 72,012 | 100.0 | % | ||||||||||||||||||||
$ | 72,012 | 100.0 | % |
2022 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 74,182 | 100.0 | % | 2022 | $ | — | — | % | |||||||||||||||||
2 | — | — | 2021 | — | — | |||||||||||||||||||||
3 | — | — | 2020 | 2,457 | 3.3 | |||||||||||||||||||||
4 | — | — | 2019 | 3,718 | 5.0 | |||||||||||||||||||||
5 | — | — | 2018 and prior | 68,007 | 91.7 | |||||||||||||||||||||
6 | — | — | $ | 74,182 | 100.0 | % | ||||||||||||||||||||
$ | 74,182 | 100.0 | % |
2023 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 2,800 | 100.0 | % | 2023 | $ | — | — | % | |||||||||||||||||
2 | — | — | 2022 | — | — | |||||||||||||||||||||
3 | — | — | 2021 | 2,800 | 100.0 | |||||||||||||||||||||
4 | — | — | 2020 | — | — | |||||||||||||||||||||
5 | — | — | 2019 and prior | — | — | |||||||||||||||||||||
6 | — | — | $ | 2,800 | 100.0 | % | ||||||||||||||||||||
$ | 2,800 | 100.0 | % |
2022 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 2,825 | 100.0 | % | 2022 | $ | — | — | % | |||||||||||||||||
2 | — | — | 2021 | 2,800 | 99.1 | |||||||||||||||||||||
3 | — | — | 2020 | — | — | |||||||||||||||||||||
4 | — | — | 2019 | — | — | |||||||||||||||||||||
5 | — | — | 2018 and prior | 25 | 0.9 | |||||||||||||||||||||
6 | — | — | $ | 2,825 | 100.0 | % | ||||||||||||||||||||
$ | 2,825 | 100.0 | % |
2023 | |||||||||||||||||||||||
Investment Grade | % of Total | Below Investment Grade | % of Total | ||||||||||||||||||||
Twelve months or less below fair value | $ | 419 | 0.9 | % | $ | — | — | % | |||||||||||||||
More than twelve months below fair value | 44,253 | 98.6 | 203 | 0.5 | |||||||||||||||||||
Total | $ | 44,672 | 99.5 | % | $ | 203 | 0.5 | % |
2022 | |||||||||||||||||||||||
Investment Grade | % of Total | Below Investment Grade | % of Total | ||||||||||||||||||||
Twelve months or less below fair value | $ | 36,020 | 58.7 | % | $ | 115 | 0.2 | % | |||||||||||||||
More than twelve months below fair value | 25,225 | 41.1 | 43 | — | |||||||||||||||||||
Total | $ | 61,245 | 99.8 | % | $ | 158 | 0.2 | % |
2023 | 2022 | ||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||
Corporate securities | $ | 256 | 1 | $ | 539 | 3 |
Year ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (7,640) | 949 | 79,047 | ||||||||||||||||
Net cash used in investing activities | (23,713) | (39,612) | (67,319) | |||||||||||||||||
Net cash provided by financing and miscellaneous activities | 40,355 | 31,625 | 682 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 9,002 | (7,038) | 12,410 |
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Admitted Assets | 2023 | 2022 | ||||||||||||
Cash and invested assets: | ||||||||||||||
Bonds | $ | 618,672 | 647,422 | |||||||||||
Cash and cash equivalents | 31,012 | 22,009 | ||||||||||||
Policy loans | 193 | 185 | ||||||||||||
Derivative assets | 26 | — | ||||||||||||
Receivables for securities | 860 | 1,456 | ||||||||||||
Total cash and invested assets | 650,763 | 671,072 | ||||||||||||
Investment income due and accrued | 5,071 | 4,719 | ||||||||||||
Deferred tax asset, net | 10,221 | 8,439 | ||||||||||||
Current federal and foreign income tax recoverable | 2,157 | — | ||||||||||||
Admitted disallowed interest maintenance reserve | 11,618 | — | ||||||||||||
Other assets | 435 | 475 | ||||||||||||
Admitted assets, exclusive of separate account assets | 680,265 | 684,705 | ||||||||||||
Separate account assets | 5,399,495 | 4,347,526 | ||||||||||||
Total admitted assets | $ | 6,079,760 | 5,032,231 |
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Liabilities and Capital and Surplus | 2023 | 2022 | ||||||||||||
Policyholder liabilities: | ||||||||||||||
Life policies and annuity contracts | $ | 423,911 | 459,725 | |||||||||||
Accident and health policies | 86,028 | 83,151 | ||||||||||||
Deposit-type contracts | 6,478 | 6,735 | ||||||||||||
Life policy and contract claims | 14 | 21 | ||||||||||||
Accident and health policy and contract claims | 369 | 433 | ||||||||||||
Other policyholder funds | 13,568 | 4,000 | ||||||||||||
Total policyholder liabilities | 530,368 | 554,065 | ||||||||||||
General expenses due and accrued | 2,610 | 1,108 | ||||||||||||
Due from separate accounts | (65,902) | (64,853) | ||||||||||||
Payable to parent and affiliates | 7,052 | 5,176 | ||||||||||||
Current income taxes | — | 3,548 | ||||||||||||
Asset valuation reserve | 19,896 | 12,862 | ||||||||||||
Other liabilities | 1,041 | 1,235 | ||||||||||||
Liabilities, exclusive of separate account liabilities | 495,065 | 513,141 | ||||||||||||
Separate account liabilities | 5,399,495 | 4,347,526 | ||||||||||||
Total liabilities | 5,894,560 | 4,860,667 | ||||||||||||
Capital and surplus: | ||||||||||||||
Common stock, $10 par value. Authorized, issued, and outstanding 200,000 shares at December 31, 2023 and 2022 | 2,000 | 2,000 | ||||||||||||
Additional paid-in capital | 132,500 | 102,500 | ||||||||||||
Special surplus funds - admitted disallowed interest maintenance reserve | 11,618 | — | ||||||||||||
Unassigned surplus | 39,082 | 67,064 | ||||||||||||
Total capital and surplus | 185,200 | 171,564 | ||||||||||||
Total liabilities and capital and surplus | $ | 6,079,760 | 5,032,231 | |||||||||||
See accompanying notes to statutory financial statements. |
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2023 | 2022 | 2021 | ||||||||||||||||||
Income: | ||||||||||||||||||||
Premiums and annuity considerations | $ | 970,465 | 656,597 | 688,560 | ||||||||||||||||
Consideration for supplementary contracts | 2,308 | 2,242 | 1,042 | |||||||||||||||||
Net investment income | 20,031 | 18,100 | 16,177 | |||||||||||||||||
Commissions and expense allowances on reinsurance ceded | 1,791 | 1,146 | 578 | |||||||||||||||||
Fees from separate accounts | 54,306 | 58,894 | 66,792 | |||||||||||||||||
Total income | 1,048,901 | 736,979 | 773,149 | |||||||||||||||||
Benefits and other expenses: | ||||||||||||||||||||
Policyholder benefits | 57,890 | 43,865 | 40,707 | |||||||||||||||||
Surrenders | 491,471 | 230,201 | 240,826 | |||||||||||||||||
Change in aggregate reserves and deposit funds | (32,581) | 76,056 | (17,165) | |||||||||||||||||
Commissions and other agent compensation | 62,988 | 46,104 | 47,602 | |||||||||||||||||
General and administrative expenses | 45,032 | 36,832 | 30,752 | |||||||||||||||||
Net transfers to separate accounts | 396,569 | 351,286 | 358,538 | |||||||||||||||||
Total benefits and other expenses | 1,021,369 | 784,344 | 701,260 | |||||||||||||||||
Income from operations before income taxes and net realized capital gain | 27,532 | (47,365) | 71,889 | |||||||||||||||||
Income tax (benefit) expense | (1,665) | 3,586 | 6,319 | |||||||||||||||||
Net income (loss) from operations before net realized capital gain | 29,197 | (50,951) | 65,570 | |||||||||||||||||
Net realized capital (loss) gain, net of taxes and interest maintenance reserve | (41,157) | 22,638 | (59,957) | |||||||||||||||||
Net (loss) income | $ | (11,960) | (28,313) | 5,613 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
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2023 | 2022 | 2021 | ||||||||||||||||||
Capital and surplus at beginning of year | $ | 171,564 | 163,010 | 155,969 | ||||||||||||||||
Correction of errors, net of tax (Note 3) | (2,198) | — | — | |||||||||||||||||
Adjusted balance at beginning of year | 169,366 | 163,010 | 155,969 | |||||||||||||||||
Net (loss) income | (11,960) | (28,313) | 5,613 | |||||||||||||||||
Change in unrealized capital gain (loss) | (7,720) | 4,843 | 1,534 | |||||||||||||||||
Change in net deferred income tax | 880 | 8,856 | 3,807 | |||||||||||||||||
Change in nonadmitted assets | (42) | (4,124) | (1,308) | |||||||||||||||||
Capital contribution from parent | 30,000 | 30,000 | — | |||||||||||||||||
Other changes in capital and surplus | (6,942) | (2,708) | (2,605) | |||||||||||||||||
Change in admitted disallowed IMR | 11,618 | — | — | |||||||||||||||||
Capital and surplus at end of year | $ | 185,200 | 171,564 | 163,010 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
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2023 | 2022 | 2021 | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Premiums and annuity considerations, net | $ | 801,076 | 658,838 | 689,603 | ||||||||||||||||
Net investment income | 22,280 | 20,141 | 19,340 | |||||||||||||||||
Other income | 56,100 | 60,035 | 67,367 | |||||||||||||||||
Total cash provided by operating activities | 879,456 | 739,014 | 776,310 | |||||||||||||||||
Benefits and expenses paid: | ||||||||||||||||||||
Benefit and loss-related payments | 377,129 | 272,409 | 279,458 | |||||||||||||||||
Commissions, expenses paid, and aggregate write-ins for deductions | 106,560 | 82,323 | 78,441 | |||||||||||||||||
Net transfers to separate accounts | 399,816 | 377,329 | 337,054 | |||||||||||||||||
Income tax paid, net | 3,590 | 6,004 | 2,310 | |||||||||||||||||
Total cash used in operating activities | 887,095 | 738,065 | 697,263 | |||||||||||||||||
Net cash (used in) provided by operating activities | (7,639) | 949 | 79,047 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Proceeds from investments sold, matured, or repaid: | ||||||||||||||||||||
Bonds | 89,218 | 97,922 | 82,882 | |||||||||||||||||
Derivatives | — | 29,969 | — | |||||||||||||||||
Miscellaneous proceeds | 596 | — | 36 | |||||||||||||||||
Total cash provided by investing activities | 89,814 | 127,891 | 82,918 | |||||||||||||||||
Cost of investments acquired: | ||||||||||||||||||||
Bonds | 62,148 | 166,219 | 91,367 | |||||||||||||||||
Derivatives | 51,189 | — | 58,296 | |||||||||||||||||
Miscellaneous applications | 190 | 1,284 | 574 | |||||||||||||||||
Total cash used in investing activities | 113,527 | 167,503 | 150,237 | |||||||||||||||||
Net cash used in investing activities | (23,713) | (39,612) | (67,319) | |||||||||||||||||
Cash flows from financing and miscellaneous activities: | ||||||||||||||||||||
Capital Contribution | 30,000 | 30,000 | — | |||||||||||||||||
Change in payable to parent and affiliates | 1,876 | 383 | 891 | |||||||||||||||||
Other | 8,479 | 1,242 | (209) | |||||||||||||||||
Net cash provided by financing and miscellaneous activities | 40,355 | 31,625 | 682 | |||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 9,003 | (7,038) | 12,410 | |||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||
Beginning of year | 22,009 | 29,047 | 16,637 | |||||||||||||||||
End of year | $ | 31,012 | 22,009 | 29,047 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
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2023 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
U.S. government | $ | 142,582 | — | 8,161 | 134,421 | |||||||||||||||||||||
States and political subdivisions | 8,623 | 38 | 677 | 7,984 | ||||||||||||||||||||||
Corporate securities | 364,970 | 6,390 | 27,399 | 343,961 | ||||||||||||||||||||||
Mortgage-backed securities | 102,497 | 63 | 8,638 | 93,922 | ||||||||||||||||||||||
Total | $ | 618,672 | 6,491 | 44,875 | 580,288 |
2022 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
U.S. government | $ | 192,732 | — | 12,000 | 180,732 | |||||||||||||||||||||
States and political subdivisions | 6,788 | 22 | 776 | 6,034 | ||||||||||||||||||||||
Corporate securities | 340,514 | 2,477 | 37,920 | 305,071 | ||||||||||||||||||||||
Mortgage-backed securities | 107,388 | 8 | 10,707 | 96,690 | ||||||||||||||||||||||
Total | $ | 647,422 | 2,507 | 61,403 | 588,527 |
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Amortized cost | Fair value | |||||||||||||
Due in 1 year or less | $ | 13,653 | 13,445 | |||||||||||
Due after 1 year through 5 years | 174,094 | 168,850 | ||||||||||||
Due after 5 years through 10 years | 71,238 | 70,607 | ||||||||||||
Due after 10 years through 20 years | 202,492 | 180,523 | ||||||||||||
Due after 20 years | 54,698 | 52,941 | ||||||||||||
Loan-backed and other structured securities | 102,497 | 93,922 | ||||||||||||
Total bonds and other assets receiving bond treatment | $ | 618,672 | 580,288 |
2023 | 2022 | 2021 | ||||||||||||||||||
Proceeds from sales | $ | 89,218 | 97,922 | 82,882 | ||||||||||||||||
Gross gains | 181 | 152 | 82 | |||||||||||||||||
Gross losses | 1,837 | 335 | 80 |
2023 | |||||||||||||||||||||||||||||||||||
12 months or less | Greater than 12 months | Total | |||||||||||||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||||||||
U.S. government | $ | — | — | 134,421 | 8,161 | 134,421 | 8,161 | ||||||||||||||||||||||||||||
States and political subdivisions | 1,881 | 54 | 5,220 | 623 | 7,101 | 677 | |||||||||||||||||||||||||||||
Corporate securities | 15,227 | 360 | 213,090 | 27,040 | 228,317 | 27,400 | |||||||||||||||||||||||||||||
Mortgage-backed securities | 606 | 5 | 89,360 | 8,632 | 89,966 | 8,637 | |||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 17,714 | 419 | 442,091 | 44,456 | 459,805 | 44,875 |
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2022 | |||||||||||||||||||||||||||||||||||
12 months or less | Greater than 12 months | Total | |||||||||||||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | ||||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||||||||
U.S. government | $ | 149,836 | 7,654 | 30,896 | 4,346 | 180,732 | 12,000 | ||||||||||||||||||||||||||||
States and political subdivisions | 5,088 | 776 | — | — | 5,088 | 776 | |||||||||||||||||||||||||||||
Corporate securities | 197,026 | 22,189 | 56,543 | 15,731 | 253,569 | 37,920 | |||||||||||||||||||||||||||||
Mortgage-backed securities | 78,483 | 5,516 | 17,776 | 5,191 | 96,259 | 10,707 | |||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 430,433 | 36,135 | 105,215 | 25,268 | 535,648 | 61,403 |
2023 | 2022 | 2021 | ||||||||||||||||||
Bonds | $ | (1,912) | (722) | 2 | ||||||||||||||||
Derivatives | (41,041) | 23,057 | (60,008) | |||||||||||||||||
Other | 5 | (25) | 64 | |||||||||||||||||
Total realized capital (losses) gains | (42,948) | 22,310 | (59,942) | |||||||||||||||||
Income tax benefit (expense) on net realized gains (losses) | 450 | 38 | (20) | |||||||||||||||||
Total realized capital (losses) gains, net of taxes | (42,498) | 22,348 | (59,962) | |||||||||||||||||
Net (losses) gains transferred to IMR, net of taxes | (1,341) | (290) | (5) | |||||||||||||||||
Net realized (losses) gains, net of taxes and IMR | $ | (41,157) | 22,638 | (59,957) |
2023 | 2022 | 2021 | ||||||||||||||||||
Interest: | ||||||||||||||||||||
Bonds | 21,130 | 20,464 | 19,345 | |||||||||||||||||
Policy loans | 11 | 8 | 7 | |||||||||||||||||
Cash, cash equivalents, and short-term investments | 3,085 | 553 | 2 | |||||||||||||||||
Derivatives | — | — | (1) | |||||||||||||||||
Other | 96 | 72 | 119 | |||||||||||||||||
Gross investment income | 24,322 | 21,097 | 19,472 | |||||||||||||||||
Investment expenses | (1,532) | (971) | (1,579) | |||||||||||||||||
Net investment income before amortization of IMR | 22,790 | 20,126 | 17,893 | |||||||||||||||||
Amortization of IMR | (2,759) | (2,026) | (1,716) | |||||||||||||||||
Net investment income | $ | 20,031 | 18,100 | 16,177 |
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2023 | 2022 | ||||||||||
Gross | $ | 5,071 | 4,719 | ||||||||
Nonadmitted | — | — | |||||||||
Admitted | $ | 5,071 | 4,719 |
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Gross Fair Value | Gross Fair Value | |||||||||||||||||||||||||||||||||||||
Notional (1)
|
Assets | Liabilities |
Notional (1)
|
Assets | Liabilities | |||||||||||||||||||||||||||||||||
OTC options | $ | 111 | 26 | — | — | — | — | |||||||||||||||||||||||||||||||
Futures | 336,455 | — | — | 302,305 | — | — | ||||||||||||||||||||||||||||||||
Total derivative instruments | $ | 26 | — | — | — | |||||||||||||||||||||||||||||||||
(1) Notional amounts are presented on an absolute basis.
|
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Gross Restricted | Percentage | |||||||||||||||||||||||||||||||||||||||||||||||||
Total general account | Total separate account | Total current year | Total prior year | Increase (decrease) | Total current year admitted restricted | Gross restricted to total assets | Admitted restricted to total admitted assets | |||||||||||||||||||||||||||||||||||||||||||
On deposit with states | $ | 1,662 | — | 1,662 | 1,651 | 11 | 1,662 | — | % | — | % | |||||||||||||||||||||||||||||||||||||||
Derivative collateral | 50,136 | — | 50,136 | 48,894 | 1,242 | 50,136 | 0.8 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||
Total restricted assets | 51,798 | — | 51,798 | 50,545 | 1,253 | 51,798 | 0.8 | % | 0.8 | % |
2023 | |||||||||||
General Account | Insulated Separate Account | Non-Insulated Separate Account | |||||||||
Net Negative IMR | $ | (11,618) | — | (4,669) | |||||||
Admitted Negative IMR | 11,618 | — | 4,290 | ||||||||
Calculated Adjusted Capital and Surplus | 159,072 | ||||||||||
Percentage of Admitted Negative IMR to Adjusted Capital | 7.3 | % | — | % | 2.7 | % |
2023 | |||||||||||
General Account | Insulated Separate Account | Non-Insulated Separate Account | |||||||||
Unamortized gains | $ | 32,780 | — | — | |||||||
Unamortized losses | (19,718) | — | — |
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2023 | ||||||||||||||||||||||||||
Level 1 |
Level 2 (a)
|
Level 3 | Total | |||||||||||||||||||||||
Assets at fair value | ||||||||||||||||||||||||||
Derivative assets | $ | — | 26 | — | 26 | |||||||||||||||||||||
Separate account assets | $ | 1,945,422 | 459,996 | — | 2,405,418 | |||||||||||||||||||||
Total assets reported at fair value | 1,945,422 | 460,022 | — | 2,405,444 | ||||||||||||||||||||||
Liabilities at fair value | ||||||||||||||||||||||||||
Separate account derivative liabilities | — | 174,717 | — | 174,717 | ||||||||||||||||||||||
Total liabilities reported at fair value | $ | — | 174,717 | — | 174,717 | |||||||||||||||||||||
(a) The Company does not have any assets or liabilities measured at net asset value (NAV) that are included in Level 2 within this
table.
|
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2022 | ||||||||||||||||||||||||||
Level 1 |
Level 2 (a)
|
Level 3 | Total | |||||||||||||||||||||||
Assets at fair value | ||||||||||||||||||||||||||
Derivative assets | $ | — | — | — | — | |||||||||||||||||||||
Separate account assets | 1,958,660 | 113,012 | — | 2,071,672 | ||||||||||||||||||||||
Total assets reported at fair value | 1,958,660 | 113,012 | — | 2,071,672 | ||||||||||||||||||||||
Liabilities at fair value | ||||||||||||||||||||||||||
Separate account derivative liabilities | — | 122,296 | — | 122,296 | ||||||||||||||||||||||
Total liabilities reported at fair value | $ | — | 122,296 | — | 122,296 | |||||||||||||||||||||
(a) The Company does not have any assets or liabilities measured at NAV that are included in Level 2 within this table.
|
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January 1, 2022 | Transfers into Level 3 |
Transfers out of Level 3 |
Total gains and (losses) included in Net Income |
Total gains and (losses) included in Surplus |
Purchases, issuances, sales and settlements | December 31, 2022 | |||||||||||||||||
TRS asset | $ | — | — | — | — | — | — | — | |||||||||||||||
Total Level 3 assets | — | — | — | — | — | — | — | ||||||||||||||||
TRS liability | — | — | — | (758) | — | 758 | — | ||||||||||||||||
Total Level 3 liabilities | $ | — | — | — | (758) | — | 758 | — |
2023 | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Aggregate Fair Value | Admitted Assets/ Carrying Value |
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||
Bonds | $ | 580,288 | 618,672 | 134,421 | 443,089 | 2,778 | ||||||||||||||||||||||||||
Cash equivalents | 47,759 | 47,759 | 47,759 | — | — | |||||||||||||||||||||||||||
Derivative assets | 26 | 26 | — | 26 | — | |||||||||||||||||||||||||||
Separate account assets | 5,199,897 | 5,399,495 | 2,014,610 | 3,171,611 | 13,676 | |||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Deposit-type contracts | $ | 6,651 | 6,478 | — | — | 6,651 | ||||||||||||||||||||||||||
Other investment contracts | 247,134 | 397,007 | — | — | 247,134 | |||||||||||||||||||||||||||
Separate account liabilities | 5,199,897 | 5,399,495 | 2,014,610 | 3,171,611 | 13,676 | |||||||||||||||||||||||||||
(b) The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition,
the Company has no assets or liabilities for which it is not practicable to measure at fair value.
|
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2022 | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Aggregate Fair Value | Admitted Assets/ Carrying Value |
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||
Bonds | $ | 588,527 | 647,422 | 180,732 | 407,795 | — | ||||||||||||||||||||||||||
Cash equivalents | 26,558 | 26,558 | 26,558 | — | — | |||||||||||||||||||||||||||
Separate account assets | 4,027,744 | 4,347,526 | 1,982,157 | 2,045,587 | — | |||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Deposit-type contracts | $ | 6,815 | 6,735 | — | — | 6,815 | ||||||||||||||||||||||||||
Other investment contracts | 384,701 | 434,151 | — | — | 384,701 | |||||||||||||||||||||||||||
Separate account liabilities | 4,027,744 | 4,347,526 | 1,982,157 | 2,045,587 | — | |||||||||||||||||||||||||||
(b) The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In addition,
the Company has no assets or liabilities for which it is not practicable to measure at fair value.
|
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December 31, 2023 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets
|
$ | 29,751 | 756 | 30,507 | |||||||||||||
Statutory valuation allowance adjustments
|
— | — | — | ||||||||||||||
Adjusted gross deferred tax assets
|
29,751 | 756 | 30,507 | ||||||||||||||
Deferred tax assets nonadmitted
|
(19,096) | (19,096) | |||||||||||||||
Subtotal net admitted deferred tax assets
|
10,655 | 756 | 11,411 | ||||||||||||||
Deferred tax liabilities
|
(1,190) | — | (1,190) | ||||||||||||||
Net admitted deferred tax assets
|
$ | 9,465 | 756 | 10,221 |
December 31, 2022 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets
|
$ | 27,191 | 814 | 28,005 | |||||||||||||
Statutory valuation allowance adjustments
|
— | — | — | ||||||||||||||
Adjusted gross deferred tax assets
|
27,191 | 814 | 28,005 | ||||||||||||||
Deferred tax assets nonadmitted
|
(17,639) | — | (17,639) | ||||||||||||||
Subtotal net admitted deferred tax assets
|
9,552 | 814 | 10,366 | ||||||||||||||
Deferred tax liabilities
|
(1,927) | — | (1,927) | ||||||||||||||
Net admitted deferred tax assets
|
$ | 7,625 | 814 | 8,439 |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets
|
$ | 2,560 | (58) | 2,502 | |||||||||||||
Statutory valuation allowance adjustments
|
— | — | — | ||||||||||||||
Adjusted gross deferred tax assets
|
2,560 | (58) | 2,502 | ||||||||||||||
Deferred tax assets nonadmitted
|
(1,457) | — | (1,457) | ||||||||||||||
Subtotal net admitted deferred tax assets
|
1,103 | (58) | 1,045 | ||||||||||||||
Deferred tax liabilities
|
737 | — | 737 | ||||||||||||||
Net admitted deferred tax assets
|
$ | 1,840 | (58) | 1,782 |
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December 31, 2023 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | — | — | |||||||||||||
Adjusted gross DTAs expected to be realized after application of the threshold
limitations
|
|||||||||||||||||
Lesser of 11.b.i or 11.b.ii:
|
|||||||||||||||||
Adjusted gross DTAs expected to be realized following the balance sheet date
(11.b.i.)
|
9,465 | 756 | 10,221 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A | N/A | 24,504 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii
|
9,465 | 756 | 10,221 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c)
|
1,190 | — | 1,190 | ||||||||||||||
Deferred tax assets admitted
|
$ | 10,655 | 756 | 11,411 |
December 31, 2022 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | 718 | 718 | |||||||||||||
Adjusted gross DTAs expected to be realized after application of the threshold
limitations
|
|||||||||||||||||
Lesser of 11.b.i or 11.b.ii:
|
|||||||||||||||||
Adjusted gross DTAs expected to be realized following the balance sheet date
(11.b.i.)
|
7,625 | 96 | 7,721 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A | N/A | 24,469 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii
|
7,625 | 96 | 7,721 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c)
|
1,927 | — | 1,927 | ||||||||||||||
Deferred tax assets admitted
|
$ | 9,552 | 814 | 10,366 |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | (718) | (718) | |||||||||||||
Adjusted gross DTAs expected to be realized after application of the threshold
limitations
|
|||||||||||||||||
Lesser of 11.b.i or 11.b.ii:
|
|||||||||||||||||
Adjusted gross DTAs expected to be realized following the balance sheet date
(11.b.i.)
|
1,840 | 660 | 2,500 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A | N/A | 35 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii
|
1,840 | 660 | 2,500 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c)
|
(737) | — | (737) | ||||||||||||||
Deferred tax assets admitted
|
$ | 1,103 | (58) | 1,045 |
December 31 | |||||||||||||||||
2023 | 2022 | Change | |||||||||||||||
Ratio percentage used to determine recovery period and threshold limitation amount | 552 | % | 589 | % | (37) | % | |||||||||||
Amount of adjusted capital and surplus used to determine recovery period threshold limitation | $ | 163,362 | $ | 163,125 | $ | 237 |
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|
December 31, 2023 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Net admitted adjusted gross DTAs - (percentage of total net admitted adjusted
gross DTAs)
|
— | % | 100.0 | % | 100.0 | % |
December 31, 2022 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Net admitted adjusted gross DTAs - (percentage of total net admitted adjusted
gross DTAs)
|
— | % | 11.8 | % | 11.8 | % |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Net admitted adjusted gross DTAs - (percentage of total net admitted adjusted
gross DTAs)
|
— | % | 88.2 | % | 88.2 | % |
December 31 | |||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023-2022 Change | 2022-2021 Change | |||||||||||||||||||||||||
Current year federal tax expense (benefit) - ordinary income | $ | (1,665) | 3,586 | 6,319 | (5,251) | (2,733) | |||||||||||||||||||||||
Current year foreign tax expense (benefit) - ordinary income | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | (1,665) | 3,586 | 6,319 | (5,251) | (2,733) | ||||||||||||||||||||||||
Current year tax expense (benefit) - net realized capital gains (losses) | (450) | (38) | 19 | (412) | (57) | ||||||||||||||||||||||||
Federal and foreign income taxes incurred | $ | (2,115) | 3,548 | 6,338 | (5,663) | (2,790) |
December 31 | ||||||||||||||||||||
Deferred tax assets | 2023 | 2022 | Change | |||||||||||||||||
Ordinary: | ||||||||||||||||||||
Deferred acquisition costs | $ | 5,054 | 4,241 | 813 | ||||||||||||||||
Policyholder reserves | 22,957 | 22,937 | 20 | |||||||||||||||||
Expense accruals | 1 | 7 | (6) | |||||||||||||||||
Investments | 1,732 | — | 1,732 | |||||||||||||||||
Nonadmitted assets | 7 | 6 | 1 | |||||||||||||||||
Subtotal | 29,751 | 27,191 | 2,560 | |||||||||||||||||
Nonadmitted ordinary deferred tax assets | (19,096) | (17,639) | (1,457) | |||||||||||||||||
Admitted ordinary tax assets | 10,655 | 9,552 | 1,103 | |||||||||||||||||
— | ||||||||||||||||||||
Capital: | — | |||||||||||||||||||
Impaired assets | 756 | 814 | (58) | |||||||||||||||||
Subtotal | 756 | 814 | (58) | |||||||||||||||||
Admitted capital deferred tax assets | 756 | 814 | (58) | |||||||||||||||||
Admitted deferred tax assets | $ | 11,411 | 10,366 | 1,045 |
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|
December 31 | ||||||||||||||||||||
Deferred tax liabilities | 2023 | 2022 | Change | |||||||||||||||||
Ordinary: | ||||||||||||||||||||
Investments | $ | (563) | (989) | 426 | ||||||||||||||||
Policyholder reserves | (621) | (931) | 310 | |||||||||||||||||
Deferred and uncollected premiums | (6) | (7) | 1 | |||||||||||||||||
Subtotal | (1,190) | (1,927) | 737 | |||||||||||||||||
Capital: | ||||||||||||||||||||
Other | — | — | — | |||||||||||||||||
Subtotal | — | — | — | |||||||||||||||||
Deferred tax liabilities | (1,190) | (1,927) | 737 | |||||||||||||||||
Net deferred tax asset | $ | 10,221 | 8,439 | 1,782 |
December 31 | |||||||||||||||||
2023 | 2022 | Change | |||||||||||||||
Net deferred tax assets
|
$ | 29,316 | 26,078 | 3,238 | |||||||||||||
Statutory valuation allowance adjustment
|
— | — | — | ||||||||||||||
Net deferred tax assets after statutory valuation allowance
|
29,316 | 26,078 | 3,238 | ||||||||||||||
Tax effect of unrealized gains/(losses)
|
(1,732) | 626 | (2,358) | ||||||||||||||
Change in net deferred income tax
|
$ | 880 |
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|
December 31, 2023 | December 31, 2022 | December 31, 2021 | |||||||||||||||
Federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Amortization of IMR | 2.1 | (0.9) | 0.5 | ||||||||||||||
Dividends received deduction | (1.6) | 1.0 | (0.8) | ||||||||||||||
Tax hedges | 0.9 | — | (0.2) | ||||||||||||||
Tax hedge reclassification | (31.3) | (10.3) | (17.5) | ||||||||||||||
Non-deductible expenses | 0.8 | — | — | ||||||||||||||
Prior period adjustments | 0.4 | — | 0.5 | ||||||||||||||
Change in deferred tax impairments | 0.2 | 0.3 | — | ||||||||||||||
Realized capital gains tax | (1.6) | 0.1 | — | ||||||||||||||
Correction of error surplus | (1.7) | — | — | ||||||||||||||
Effective tax rate | (10.8) | % | 11.2 | % | 3.5 | % | |||||||||||
Federal and foreign income taxes incurred | (6.0) | % | (7.6) | % | 8.8 | % | |||||||||||
Realized capital gains tax | (1.6) | 0.1 | — | ||||||||||||||
Change in net deferred income taxes | (3.2) | 18.7 | (5.3) | ||||||||||||||
Effective tax rate | (10.8) | % | 11.2 | % | 3.5 | % |
33 of 42
|
Members of Consolidated Tax Group | |||||
Allianz Life Insurance Company of New York | Allianz Life Insurance Company of Missouri | ||||
Allianz Life Insurance Company of North America | Allianz Underwriters Insurance Company | ||||
AZOA Services Corporation | AGCS Marine Insurance Company | ||||
Allianz Global Risks US Insurance Company | Allianz Reinsurance Management Services, Inc. | ||||
Allianz Reinsurance of America, Inc. | Fireman’s Fund Insurance Company | ||||
Allianz Technology of America, Inc. | Fireman’s Fund Indemnity Corporation | ||||
Allianz Renewable Energy Partners of America LLC | National Surety Corporation | ||||
Allianz Renewable Energy Partners of America 2 LLC | Chicago Insurance Company | ||||
PFP Holdings, LLC. | Interstate Fire & Casualty Company | ||||
AZL PF Investments, Inc. | American Automobile Insurance Company | ||||
Dresdner Kleinwort Pfandbriefe Investments II, Inc. | The American Insurance Company | ||||
Allianz Fund Investments, Inc. | Allianz Risk Transfer, Inc. | ||||
Yorktown Financial Companies, Inc. | Allianz Risk Transfer (Bermuda), Ltd. | ||||
Questar Capital Corporation | Questar Agency, Inc. |
34 of 42
|
2023 | 2022 | 2021 | ||||||||||||||||||
Balance at January 1, net of reinsurance recoverables of $1,416, $1,137, and $1,079, respectively | $ | 10,658 | 8,074 | 7,834 | ||||||||||||||||
Incurred related to: | ||||||||||||||||||||
Current year | 3,845 | 5,182 | 2,613 | |||||||||||||||||
Prior years | 16 | (113) | (433) | |||||||||||||||||
Total incurred | 3,861 | 5,069 | 2,180 | |||||||||||||||||
Paid related to: | ||||||||||||||||||||
Current year | 272 | 361 | 154 | |||||||||||||||||
Prior years | 2,844 | 2,124 | 1,786 | |||||||||||||||||
Total paid | 3,116 | 2,485 | 1,940 | |||||||||||||||||
Balance at December 31, net of reinsurance recoverables of $1,512, $1,416, and $1,137, respectively | $ | 11,403 | 10,658 | 8,074 |
For the years ended December 31, | ||||||||||||||
Reduction in: | 2023 | 2022 | ||||||||||||
Aggregate reserves | $ | 15,137 | 11,183 | |||||||||||
Policy and contract claims | 147 | 181 |
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|
Year ended | Direct amount | Ceded to other companies | Net amount | |||||||||||||||||
December 31, 2023 | ||||||||||||||||||||
Life insurance in force | $ | 2,921,758 | 2,627,567 | 294,191 | ||||||||||||||||
Premiums: | ||||||||||||||||||||
Life | 3,661 | 3,321 | 340 | |||||||||||||||||
Annuities | 967,460 | — | 967,460 | |||||||||||||||||
Accident and health | 3,058 | 393 | 2,665 | |||||||||||||||||
Total premiums | $ | 974,179 | 3,714 | 970,465 | ||||||||||||||||
December 31, 2022 | ||||||||||||||||||||
Life insurance in force | $ | 1,837,298 | 1,651,432 | 185,866 | ||||||||||||||||
Premiums: | ||||||||||||||||||||
Life | 2,286 | 2,046 | 240 | |||||||||||||||||
Annuities | 653,562 | — | 653,562 | |||||||||||||||||
Accident and health | 3,207 | 412 | 2,795 | |||||||||||||||||
Total premiums | $ | 659,055 | 2,458 | 656,597 | ||||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Life insurance in force | $ | 750,332 | 673,079 | 77,253 | ||||||||||||||||
Premiums: | ||||||||||||||||||||
Life | 1,171 | 1,035 | 136 | |||||||||||||||||
Annuities | 685,610 | — | 685,610 | |||||||||||||||||
Accident and health | 3,245 | 431 | 2,814 | |||||||||||||||||
Total premiums | $ | 690,026 | 1,466 | 688,560 |
36 of 42
|
2023 | Percentage of total | 2022 | Percentage of total | |||||||||||||||||||||||
Subject to discretionary withdrawal: | ||||||||||||||||||||||||||
With market value adjustment | $ | 79,917 | 1 | % | $ | 82,552 | 2 | % | ||||||||||||||||||
At book value less current surrender charges of 5% or more | 2,704,747 | 49 | 1,897,657 | 41 | ||||||||||||||||||||||
At market value | 1,574,991 | 29 | 1,599,527 | 35 | ||||||||||||||||||||||
Total with adjustment or at market value | 4,359,655 | 79 | 3,579,736 | 78 | ||||||||||||||||||||||
At book value without adjustment (minimal or no charge or adjustment) | 1,044,473 | 19 | 873,856 | 19 | ||||||||||||||||||||||
Not subject to discretionary withdrawal | 121,446 | 2 | 114,825 | 3 | ||||||||||||||||||||||
Total gross | 5,525,574 | 100 | % | 4,568,417 | 100 | % | ||||||||||||||||||||
Reinsurance ceded | — | — | ||||||||||||||||||||||||
Total net | $ | 5,525,574 | $ | 4,568,417 | ||||||||||||||||||||||
Amount included in At book value less current charges of 5% or more that will move to At book value without adjustment in the year after the statement date: | $ | 447,649 | $ | 271,907 |
Reconciliation of total annuity actuarial reserves and deposit fund liabilities: | 2023 | 2022 | ||||||||||||
Life, Accident and Health Annual Statement: | ||||||||||||||
Annuities, net (excluding supplementary contracts with life contingencies) | $ | 340,007 | 377,151 | |||||||||||
Supplemental contracts with life contingencies, net | 23,099 | 21,956 | ||||||||||||
Deposit-type contracts | 6,478 | 6,735 | ||||||||||||
Subtotal | 369,584 | 405,842 | ||||||||||||
Separate Accounts Annual Statement: | ||||||||||||||
Annuities, net (excluding supplementary contracts with life contingencies) | 5,155,534 | 4,162,122 | ||||||||||||
Supplemental contracts with life contingencies, net | 456 | 453 | ||||||||||||
Subtotal | 5,155,990 | 4,162,575 | ||||||||||||
Total annuity actuarial reserves and deposit fund liabilities | $ | 5,525,574 | 4,568,417 |
37 of 42
|
2023 | |||||||||||
General Account | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Universal life | $ | — | — | 488 | |||||||
Indexed life | 1,709 | 1,649 | 1,707 | ||||||||
Other permanent cash value life insurance | 250 | 250 | 250 | ||||||||
Miscellaneous reserves | — | — | 22,000 | ||||||||
Not subject to discretionary withdrawal or no cash values: | |||||||||||
Term policies without cash value | XXX | XXX | 3,344 | ||||||||
Miscellaneous reserves | XXX | XXX | 41,114 | ||||||||
Total gross | 1,959 | 1,899 | 68,903 | ||||||||
Reinsurance ceded | — | — | 8,099 | ||||||||
Total net (1)
|
$ | 1,959 | 1,899 | 60,804 | |||||||
(1) Balances reflected within this disclosure reside in the Company's general account; the Company's separate accounts do not
contain Life business.
|
|||||||||||
2022 | |||||||||||
General Account | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Universal life | $ | 7 | 2 | 608 | |||||||
Indexed life | 1,816 | 1,721 | 1,794 | ||||||||
Other permanent cash value life insurance | 244 | 244 | 244 | ||||||||
Miscellaneous reserves | — | — | 22,000 | ||||||||
Not subject to discretionary withdrawal or no cash values: | |||||||||||
Term policies without cash value | XXX | XXX | 2,253 | ||||||||
Miscellaneous reserves | XXX | XXX | 38,185 | ||||||||
Total gross | 2,067 | 1,967 | 65,084 | ||||||||
Reinsurance ceded | — | — | 4,466 | ||||||||
Total net (1)
|
$ | 2,067 | 1,967 | 60,618 | |||||||
(1) Balances reflected within this disclosure reside in the Company's general account; the Company's separate accounts do not
contain Life business.
|
Reconciliation of total life actuarial reserves: | 2023 | 2022 | ||||||
Life, Accident, and Health Annual Statement: | ||||||||
Life insurance, net | $ | 3,016 | $ | 3,112 | ||||
Miscellaneous reserves, net | 57,788 | 57,506 | ||||||
Total life actuarial reserves | $ | 60,804 | $ | 60,618 | ||||
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|
2023 | 2022 | ||||||||||
Premiums, considerations, or deposits | $ | 884,944 | 597,807 | ||||||||
Reserves: | |||||||||||
Reserves for accounts with assets at fair value | 2,149,845 | 1,915,239 | |||||||||
Reserves for account, with assets at amortized cost | 3,006,145 | 2,247,336 | |||||||||
Total reserves | 5,155,990 | 4,162,575 | |||||||||
By withdrawal characteristics: | |||||||||||
At fair value | 2,149,388 | 1,581,648 | |||||||||
At book value without MV adjustment and with current surrender charge of 5% or more | 2,129,600 | 1,914,787 | |||||||||
At book value without MV adjustment and with current surrender charge of less than 5% | 876,546 | 665,687 | |||||||||
Subtotal | 5,155,534 | 4,162,122 | |||||||||
Not subject to discretionary withdrawal | 456 | 453 | |||||||||
Total | $ | 5,155,990 | 4,162,575 |
2023 | 2022 | |||||||||||||||||||||||||
Product/transaction | Legally insulated | Not legally insulated | Legally insulated | Not legally insulated | ||||||||||||||||||||||
Variable Annuities | $ | 1,591,701 | — | 1,621,829 | — | |||||||||||||||||||||
Variable Annuities (Non-Unitized Non-Insulated) | — | 3,807,794 | — | 2,725,697 | ||||||||||||||||||||||
Total | $ | 1,591,701 | 3,807,794 | 1,621,829 | 2,725,697 |
2023 | 2022 | 2021 | ||||||||||||||||||
Transfers as reported in the Summary of Operations of the Separate Accounts Annual Statement: | ||||||||||||||||||||
Transfers to separate accounts | $ | 884,944 | 597,807 | 643,502 | ||||||||||||||||
Transfers from separate accounts | (487,002) | (246,810) | (285,061) | |||||||||||||||||
Net transfers to separate accounts | 397,942 | 350,997 | 358,441 | |||||||||||||||||
Reconciling adjustments: | ||||||||||||||||||||
Other adjustments | (1,373) | 289 | 97 | |||||||||||||||||
Transfers as reported in the Statutory Statements of Operations | $ | 396,569 | 351,286 | 358,538 |
39 of 42
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40 of 42
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41 of 42
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42 of 42
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To send applications, and/or a check for an additional Purchase Payment,
or for general customer service, please mail to the appropriate address as follows:
|
REGULAR MAIL
|
Allianz Life Insurance Company of New York
P.O. Box 59060
Minneapolis MN 55459-0060
|
|
OVERNIGHT, CERTIFIED, OR REGISTERED MAIL
|
Allianz Life Insurance Company of New York
5701 Golden Hills Drive
Minneapolis MN 55416-1297
|
Checks sent to the wrong address for applications or
additional Purchase Payments are forwarded to the 5701
Golden Hills Drive address listed above, which may
delay processing.
|
Securities and Exchange Commission Registration Fee
|
$ 221,400
|
--------------
|
|
Estimated Printing and Filing Costs:
|
$ 30,000
|
--------------
|
|
Estimated Accounting Fees:
|
$ 60,000
|
---------------
|
|
Estimated Legal Fees:
|
$ 175,000
|
---------------
|
|
Estimated Miscellaneous Fees:
|
N/A
|
---------------
|
1.
|
(a) Principal Underwriter Agreement by and between Preferred Life Insurance Company of New
York on behalf of Preferred Life Variable Account C and NALAC Financial Plans, Inc. incorporated by reference as exhibit EX-99.B3.a. from Registrant’s Pre-Effective Amendment No. 1 to Form N-4 (File Nos. 333-19699 and 811-05716)
electronically filed on May 12, 1997. Preferred Life Insurance Company of New York is the predecessor to Allianz Life Insurance Company of New York. Preferred Life Variable Account C is the predecessor to Allianz Life of NY Variable Account
C. NALAC Financial Plans, Inc., is the predecessor to USAllianz Investor Services, LLC, which is the predecessor to Allianz Life Financial Services, LLC.
|
(b)
|
Broker-Dealer Agreement (amended and
restated) between Allianz Life Insurance Company of New York and Allianz Life Financial Services, LLC, dated June 1, 2010 incorporated by reference as exhibit EX- 99.B3.b. from Registrant’s Post-Effective Amendment No. 21 to Form N-4 (File
Nos. 333-143195 and 811-05716) electronically filed on October 21, 2010.
|
2.
|
Not applicable
|
3.
|
(a) Articles of Incorporation, as amended and restated
March 9, 2011, of Allianz Life Insurance Company of New York, filed on December 19, 2013 as Exhibit 3(a) to Registrant's initial registration on Form S-1 (File No. 333-192948), is incorporated by reference.
|
(d) |
Non-Qualified Annuity Stretch Endorsement, TE-NQ2023-NY incorporated by
reference as Exhibit 4(d) from Registrant’s initial registration on Form S-1 (File No. 333-275895), electronically filed on December 5, 2023.
|
5.* |
Opinion re Legality, filed herewith.
|
8.
|
Opinion re Tax Matters - not applicable
|
9.
|
Not applicable
|
10.
|
Material Contracts - not applicable
|
11.
|
Not applicable
|
12.
|
Not applicable
|
15.
|
Not applicable
|
16.
|
Not applicable
|
21. |
Not applicable.
|
23.
|
(a)* Consent of Independent Registered
Public Accounting Firm, filed herewith.
|
25. |
Not applicable
|
26. |
Not applicable
|
107* |
Filing Fee Table, filed herewith.
|
(1)
|
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
|
(i)
|
To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
|
(ii)
|
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total
dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to
Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.
|
(iii)
|
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to
such information in the registration statement.
|
(2)
|
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
|
(3)
|
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
|
(4)
|
That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a
registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of
the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by
reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the
registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
|
(5)
|
That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the
securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
|
(i)
|
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
|
(ii)
|
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
|
(iii)
|
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities
provided by or on behalf of the undersigned registrant; and
|
(iv)
|
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
|
(6)
|
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the
Insurance Company pursuant to the foregoing provisions, or otherwise, the Insurance Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act
and, is therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Insurance Company of expenses incurred or paid by a director, officer or controlling person of the
Insurance Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Insurance Company will, unless in the opinion
of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the
final adjudication of such issue.
|
Signature
|
Title
|
Jasmine M. Jirele*
|
Director, Board Chair and Chief Executive Officer
|
Eric J. Thomes*
|
Director and President
|
Udo Frank*
|
Director
|
Howard E. Wooley*
|
Director
|
William E. Gaumond*
|
Director, Chief Financial Officer and Treasurer
|
(principal accounting officer)
|
|
Walter R. White*
|
Director
|
Lorraine Lods *
|
Director
|
Kevin E. Walker*
|
Director
|
* |
By Power of Attorney, filed as Exhibit 24(c) to this Registration Statement.
|
Exhibit
|
Description of Exhibit
|
|
1(c)
|
The current specimen of the selling agreement (General Agency Agreement)
|
|
5
|
Opinion re Legality
|
|
23(a)
|
Consent of Independent Registered Public Accounting Firm
|
|
24(c)
|
Powers of Attorney
|
|
99
|
Daily Adjustment Calculation
|
|
107
|
Filing Fees Table
|