5
|
||
11
|
||
15
|
||
|
15
|
|
|
16
|
|
|
17
|
|
19
|
||
|
19
|
|
|
20
|
|
|
20
|
|
|
20
|
|
20
|
||
|
21
|
|
|
21
|
|
|
22
|
|
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23
|
|
|
23
|
|
|
24
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|
|
24
|
|
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25
|
|
|
26
|
|
|
27
|
|
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27
|
|
|
27
|
|
1.
|
27
|
|
|
28
|
|
|
28
|
|
|
30
|
|
2.
|
30
|
|
|
30
|
|
|
30
|
|
|
31
|
|
|
31
|
|
|
32
|
|
|
32
|
|
|
32
|
3.
|
32
|
|
|
32
|
|
|
33
|
|
|
33
|
|
|
35
|
|
|
35
|
|
4.
|
36
|
|
|
37
|
|
|
38
|
|
|
39
|
|
|
41
|
|
|
44
|
|
|
46
|
|
|
47
|
|
|
48
|
|
|
49
|
|
5.
|
50
|
|
|
50
|
|
|
50
|
|
|
51
|
|
|
51
|
|
|
53
|
|
6.
|
54
|
|
|
54
|
|
|
55
|
|
|
55
|
|
|
56
|
|
|
58
|
|
|
59
|
|
|
59
|
|
|
59
|
|
|
59
|
|
7.
|
59
|
|
|
60
|
|
|
61
|
|
|
61
|
|
|
61
|
|
|
62
|
|
8.
|
62
|
|
|
62
|
|
|
62
|
|
|
63
|
9.
|
64
|
|
10.
|
67
|
|
|
68
|
|
|
70
|
|
|
70
|
|
|
70
|
|
11.
|
71
|
|
|
71
|
|
|
71
|
|
|
73
|
|
|
73
|
|
|
73
|
|
|
73
|
|
|
73
|
|
|
75
|
|
|
75
|
|
|
75
|
|
|
75
|
|
|
76
|
|
|
76
|
|
|
76
|
|
|
78
|
|
|
78
|
|
|
78
|
|
|
79
|
|
|
79
|
|
|
79
|
|
|
79
|
|
|
79
|
|
|
79
|
|
12.
|
80
|
|
|
80
|
|
|
80
|
|
|
80
|
|
|
80
|
|
|
82
|
|
|
82
|
|
|
82
|
|
|
82
|
13.
|
82
|
|
|
83
|
|
|
88
|
|
|
98
|
|
|
98
|
|
|
98
|
|
14.
|
106
|
|
107
|
||
|
107
|
|
|
107
|
|
|
108
|
|
|
108
|
|
|
109
|
|
110
|
||
112
|
||
|
112
|
|
|
112
|
|
114
|
||
115
|
||
|
115
|
|
|
116
|
|
|
116
|
|
|
117
|
|
121
|
||
122
|
||
Back Cover
|
||
|
Back Cover
|
|
FEES AND
EXPENSES
|
Prospectus
Location
|
||
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 8.5% 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withdrawn, declining to 0% over that time period.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 $8,500.
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
Precision Strategy, Index Guard
Strategy, and Index Performance Strategy 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 negative, and you
will lose money if the Daily
Adjustment is negative.
•Index Precision Strategy, Index Guard Strategy, and Index Performance
Strategy. Daily Adjustments under these Crediting Methods 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% or 20% Buffer, or -10% Floor, as
applicable. The maximum
potential loss from a negative Daily Adjustment is: -99%
for the Index Precision
Strategy and Index Performance Strategy; and -35% for the
Index Guard Strategy.
•Index Protection Strategy. This Crediting Method is not subject to the Daily
Adjustment.
|
Fee Tables
4. Valuing Your
Contract
6. Expenses
Appendix B –
Daily
Adjustment
|
||
Transaction
Charges
|
In addition to withdrawal charges, and Daily Adjustments
that may apply to withdrawals and
other transactions from the Index Precision Strategy, Index
Guard Strategy, and Index
Performance Strategy Index Options, we will also charge you
a fee of $25 per transfer after
you exceed 12 transfers between Variable Options in a
Contract Year.
|
Fee Tables
6. Expenses
|
||
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 F –
Funds Available
Under the
Contract
|
||
Annual Fee
|
Minimum
|
Maximum
|
||
Base Contract(1)
|
1.26%
|
1.26%
|
||
Investment Options(2)
(Fund fees and expenses)
|
0.68%
|
0.88%
|
||
|
Optional Benefits Available for an Additional
Charge(3)
(for a single optional benefit, if elected)
|
0.20%
|
0.20%
|
|
|
(1)
As a percentage of the Charge Base, plus an amount
attributable to the contract maintenance charge.
|
|
||
|
(2)
As a percentage of a Fund's average daily net assets.
|
|
||
|
(3)
As a percentage of the Charge Base. This is the current
charge for the Maximum Anniversary Value Death
Benefit.
|
|
|
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 Precision Strategy, Index Guard
Strategy, and Index Performance Strategy
Index Options could result in substantial
losses due to the application of negative
Daily Adjustments.
|
|
||
|
Lowest Annual Cost:
$1,778
|
Highest Annual Cost:
$2,107
|
|
|
|
Assumes:
•Investment of $100,000
•Least expensive Variable Option fees and
expenses
•5% annual appreciation
•Traditional Death Benefit
•No additional Purchase Payments,
transfers, or withdrawals
•No financial adviser fees
|
Assumes:
•Investment of $100,000
•Most expensive Variable Option fees and
expenses
•5% annual appreciation
•Maximum Anniversary Value Death
Benefit with a 0.20% rider fee
•No additional Purchase Payments,
transfers, or withdrawals
•No financial adviser fees
|
|
|
|
RISKS
|
|
||
Risk of
Loss
|
You can lose money by investing in the Contract, including
loss of principal and previous
earnings.
|
Risk Factors
|
||
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 Credit. For Index Precision
Strategy, Index Guard Strategy, and
Index Performance Strategy Index Options, 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 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
Options and the Index Options
available under the Contract.
• Each Variable Option and Index Option have their own unique risks.
• You should review each Fund’s prospectus and disclosures, including risk factors, before
making an investment decision.
|
Risk Factors
|
|
RISKS
|
Prospectus
Location
|
||
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 and are subject to
our claims-paying ability and financial strength. More
information about Allianz Life,
including our financial strength ratings, is available upon
request by visiting
www.allianzlife.com/about/financial-ratings, or contacting us at (800) 624-0197.
|
Risk Factors
|
||
|
RESTRICTIONS
|
|
||
Investments
|
• Certain Index Options may not be available under your Contract.
• The first 12 transfers between Variable Options every Contract Year are free. After that,
we deduct a $25 transfer fee for each additional transfer.
Your transfers between the
Variable Options are also subject to policies designed to
deter excessively frequent
transfers and market timing.
• We 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.
• You can typically transfer Index Option Value only on Term End Dates. However, you can
transfer assets out of a 3-year or 6-year Term 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.
• We do not accept additional Purchase Payments during the Annuity Phase.
• We reserve the right to close or 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 also reserve the right to decline any or all
Purchase Payments at any time on a
nondiscriminatory basis.
|
Risk Factors
3. Purchasing the
Contract
4. Valuing Your
Contract
5. Information
Related to the
Variable Options'
Underlying Funds
6. Expenses –
Transfer Fee
Appendix A –
Available Indexes
|
||
Optional
Benefits
|
• The optional Maximum Anniversary Value Death Benefit may not be modified.
Withdrawals may reduce the Maximum Anniversary Value Death
Benefit’s Guaranteed
Death Benefit Value by more than the value withdrawn and
will end the Maximum
Anniversary Value Death Benefit if the withdrawals reduce
both the Contract Value and
Guaranteed Death Benefit Value to zero.
|
10. Death Benefit
|
||
|
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
|
|
||
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
|
|
CONFLICTS OF
INTEREST
|
Prospectus
Location
|
||
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
Negative Index Performance
Protection
|
Currently
Available Indexes
|
Positive Index Performance
Participation Limit
|
Index Protection Strategy
1-year Term with
100% downside protection
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 1.50% minimum DPSC
|
Index Precision Strategy
1-year Term with 10% Buffer
• Not available to Contracts issued before
August 24, 2015, or that have a Contract
number starting with DAZ.
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 1.50% minimum Precision Rate
|
Index Guard Strategy
1-year Term with -10% Floor
• Not available to Contracts issued before
August 24, 2015, or that have a Contract
number starting with DAZ.
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 1.50% minimum Cap
|
Index Performance Strategy
1-year Term with 10% Buffer
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 1.50% minimum Cap
|
Index Performance Strategy
3-year Term with 20% Buffer
• Not available to Contracts issued before
August 24, 2015, or that have a Contract
number starting with DAZ.
• Available only to Contracts issued from
August 24, 2015, to April 29, 2021, that
have a Contract number starting with
AV.
|
• S&P 500® Index
• Russell 2000® Index
|
• 5% minimum Cap
• Can be “uncapped” (i.e., we do not declare a
Cap for that Term)
|
Currently Available
Crediting Methods, Term
Lengths, and
Negative Index Performance
Protection
|
Currently
Available Indexes
|
Positive Index Performance
Participation Limit
|
Index Performance Strategy
3-year Term with 10% or 20%
Buffer and Participation Rate
• Not available to Contracts issued before
April 30, 2021.
|
• S&P 500® Index
• Russell 2000® Index
|
• 5% minimum Cap
• Can be uncapped
• 100% minimum Participation Rate
|
Index Performance Strategy
6-year Term with 10% Buffer and
Participation Rate
• Not available to Contracts issued before
April 30, 2021.
|
• S&P 500® Index
• Russell 2000® Index
|
• 10% minimum Cap
• Can be uncapped
• 100% minimum Participation Rate
|
Number of Complete
Years Since
Purchase Payment
|
Withdrawal Charge
Amount
|
0
|
8.5%
|
1
|
8%
|
2
|
7%
|
3
|
6%
|
4
|
5%
|
5
|
4%
|
6 years or more
|
0%
|
Transfer Fee(3)
|
$25
|
(for each transfer between Variable Options after twelve in a Contract Year)
|
|
|
Index Precision Strategy
and
Index Performance Strategy
|
Index Guard Strategy
|
Daily Adjustment Maximum Potential Loss
|
99%
|
35%
|
(as a percentage of Index Option Value, applies for distributions from an
Index Option before any Term End Date)(4)
|
|
|
Administrative Expenses (or contract maintenance
charge)(1)
(per year)
|
$50
|
Base Contract Expenses(2)
(as a percentage of the Charge Base)
|
1.25%
|
Optional Benefit Expenses – Maximum Anniversary
Value Death Benefit
(as a percentage of the Charge Base)
|
0.20%
|
|
Minimum
|
Maximum
|
(expenses that are deducted from Fund assets, including management fees,
distribution and/or service (12b-1)
fees, and other expenses)
|
0.68%
|
0.88%
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Maximum Fund expense
|
$10,854
|
$14,251
|
$17,409
|
$26,540
|
Minimum Fund expense
|
$10,654
|
$13,648
|
$16,399
|
$24,507
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Maximum Fund expense
|
N/A*
|
$7,251
|
$12,409
|
$26,540
|
Minimum Fund expense
|
N/A*
|
$6,648
|
$11,399
|
$24,507
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Maximum Fund expense
|
$2,354
|
$7,251
|
$12,409
|
$26,540
|
Minimum Fund expense
|
$2,154
|
$6,648
|
$11,399
|
$24,507
|
|
January 1, 2014 through December 31, 2023
|
||||
|
S&P 500®
Index
|
Nasdaq-100®
Index
|
Russell 2000®
Index
|
EURO
STOXX 50®
|
iShares® MSCI
Emerging Markets ETF
|
Returns without dividends
|
11.02
%
|
19.57
%
|
6.76
%
|
4.60
%
|
1.04
%
|
Returns with dividends
|
13.09
%
|
20.79
%
|
8.19
%
|
8.10
%
|
3.22
%
|
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.
|
You can only transfer Index Option Value to a Variable Option
on a sixth Index Anniversary.
|
Financial Adviser Fee
Withdrawal
|
Contract
Value
|
Guaranteed Death Benefit
Value for a Contract with the
Traditional Death Benefit
|
Guaranteed Death Benefit Value
for a Contract with the
Maximum Anniversary Value
Death Benefit
|
Prior to 1st years withdrawal
|
$ 100,000
|
$ 90,000
|
$ 105,000
|
$5,000 withdrawal (subject to an
|
|
|
|
8.5% withdrawal charge)
|
– [($5,000 ÷ (1 – 8.5%)]
|
|
|
Amount withdrawn
|
– $5,465
|
– [($5,465 ÷ 100,000) x 90,000]
|
– [($5,465 ÷ 100,000) x 105,000]
|
|
|
= - $4,919
|
= - $5,739
|
After 1st years withdrawal
|
$ 94,535
|
$ 85,081
|
$ 99,261
|
|
|
|
|
Prior to 2nd years withdrawal
|
$ 97,000
|
$ 85,081
|
$ 99,261
|
$5,000 withdrawal (not subject to a
|
|
|
|
withdrawal charge)
|
– $5,000
|
– [($5,000 ÷ 97,000) x 85,081]
|
– [($5,000 ÷ 97,000) x 99,261]
|
|
|
= - $4,386
|
= - $5,117
|
After 2nd years withdrawal
|
$ 92,000
|
$ 80,695
|
$ 94,144
|
|
|
|
|
Prior to 3rd years withdrawal
|
$ 80,000
|
$ 80,695
|
$ 94,144
|
$5,000 withdrawal (not subject to a
|
– $5,000
|
– [($5,000 ÷ 80,000) x 80,695]
|
– [($5,000 ÷ 80,000) x 94,144]
|
withdrawal charge)
|
|
= - $5,044
|
= - $5,884
|
After 3rd years withdrawal
|
$ 75,000
|
$ 75,651
|
$ 88,260
|
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 or Maximum Anniversary Value Death
Benefit are 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 1 or 3, payments end.
– Annuity Option 2 or 4, payments end when the
guaranteed period ends.
– Annuity Option 5, payments end and the Payee may
receive a lump sum refund.
– 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 as defined by applicable state law or
regulation, 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).
|
• Variable Options are subject to Contract fees and expenses (e.g. product fee, contract maintenance charge), and
market risk and assets you allocate to them may lose value, including any Purchase Payments we hold in the AZL
Government Money Market
subaccount before transferring them to your selected Index Options.
|
For Owners of Qualified Contracts, AIP is not available if you
have an Inherited IRA Contract, an Inherited Roth IRA
Contract, or if your Contract is funding a plan that is tax
qualified under Section 401 of the Code.
|
Variable Account Value increases when….
|
Variable Account Value decreases when….
|
• you add assets to a Variable Option by Purchase Payment or
Contract Value transfer,
• we hold assets in the AZL Government Money Market Fund
subaccount on an interim basis due to Purchase Payments
destined for the Index Option(s), or a Contract Value
increase
associated with the death of a Determining Life, or
• there is positive Fund performance
|
• you take assets out of a Variable Option by
withdrawal (including any financial adviser fees that you
choose to have us pay from this Contract) or Contract Value
transfer,
• we transfer assets held in the AZL Government Money Market
Fund subaccount on an interim basis that are destined for the
Index Option(s) according to Purchase Payment default
instructions,
• there is negative Variable Option performance, or
• we deduct Contract fees and expenses
|
Contract fees and expenses we deduct from the Variable
Options include the product fee, rider fee, contract maintenance
charge, withdrawal charge, and transfer fee 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. Variable Options include Purchase Payments we
hold in the AZL Government Money Market Fund
subaccount before transferring them to your selected Index Options.
|
Index Option Values increase when….
|
Index Option Values decrease when….
|
• you add assets to an Index Option by Purchase Payment or
Contract Value transfer,
• we transfer assets held in the AZL Government Money Market
Fund subaccount on an interim basis to your selected Index
Option according to Purchase Payment default instructions, or
• you receive a positive 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) or Contract Value
transfer,
• you receive a negative Credit or Daily Adjustment, or
• we deduct Contract fees and expenses
|
Contract fees and expenses
we deduct from the Index Options include the product fee, rider fee, 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 Precision Strategy, Index Guard 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 -10%
with the Floor.
|
• 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 a 3-year or 6-year Term 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 Protection
Strategy
|
• Most protection.
• If the Index loses value, the Credit is zero. You do not receive a negative Credit.
|
Index Precision Strategy
|
• Less protection than the Index Protection Strategy and Index Guard 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. In a period of extreme negative
market performance, the risk of loss is
greater with the Index Precision Strategy than with the Index
Guard Strategy.
|
Index Guard Strategy
|
• Less protection than the Index Protection Strategy, but more than Index Precision Strategy and Index
Performance Strategy.
• Permits a negative Performance Credit down to the -10% Floor.
• Protection from significant losses.
• More sensitive to smaller negative market movements that persist over time because the -10% Floor
reduces the impact of large negative market movements.
• In an extended period of smaller negative market returns, the risk of loss is greater with the Index
Guard Strategy than with the Index Performance Strategy and
Index Precision Strategy.
• Provides certainty regarding the maximum loss in any Term.
|
Index Performance
Strategy
|
• Less protection than the Index Protection Strategy and Index Guard Strategy. 3-year Term Index
Options with 20% Buffer have more protection than what is
available with the Index Precision
Strategy.
• Buffer absorbs 10% or 20% 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 negative market movements are
absorbed by the Buffer. In a period of extreme negative
market performance, the risk of loss is greater
with the Index Performance Strategy than with the Index Guard
Strategy.
• 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 Protection
Strategy
|
• Growth opportunity limited by the DPSCs.
• Least growth opportunity.
• May perform best in periods of small positive market movements relative to the other Crediting
Methods, because such small positive market movements may
result in positive Credits that are
greater than the Index Return while also providing complete
protection from any Index losses.
• DPSCs will generally be less than the Precision Rates and Caps.
|
Index Precision Strategy
|
• Growth opportunity limited by the Precision Rates.
• May perform best in periods of small positive market movements.
• Generally more growth opportunity than the Index Protection Strategy, but less than the Index
Performance Strategy.
• Growth opportunity may be more or less than the Index Guard Strategy depending on Precision Rates
and Caps.
|
What is the growth opportunity?
|
|
Index Guard Strategy
|
• Growth opportunity limited by the Caps.
• May perform best in a strong market.
• Growth opportunity that generally may be matched or exceeded only by the Index Performance
Strategy. However, growth opportunity may be more or less
than the Index Precision Strategy or
Index Performance Strategy depending on Precision Rates and
Caps.
|
Index Performance
Strategy
|
• Growth opportunity limited by the Caps and/or Participation Rates. If we do not declare a Cap for a
3-year or 6-year Term
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.
• Generally the most growth opportunity. However, growth opportunity may be less than the Index
Precision Strategy or Index Guard Strategy depending on
Precision Rates, Caps, and/or Participation
Rates.
|
What can change within a Crediting Method?
|
|
Index Protection
Strategy
|
• Renewal DPSCs for existing Contracts can change on each Term Start Date subject to the
guaranteed minimum.
– 1-year Term has a 1.50% minimum DPSC.
|
Index Precision Strategy
|
• Renewal Precision Rates for existing Contracts can change on each Term Start Date subject to the
guaranteed minimum.
– 1-year Term with 10% Buffer has a 1.50% minimum Precision 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 Guard Strategy
|
• Renewal Caps for existing Contracts can change on each Term Start Date subject to the guaranteed
minimum.
– 1-year Term with -10% Floor has a 1.50% minimum Cap.
• The -10% Floors 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 Floor for it on the date we add the
Index Option to your Contract. The minimum Floor is -25% for
a new Index Option.
|
Index Performance
Strategy
|
• Renewal Caps and/or Participation Rates for existing Contracts can change on each Term Start Date
subject to the guaranteed minimums.
– 1-year Term with 10% Buffer has a 1.50% minimum Cap.
– For Contracts issued before April 30, 2021, the 3-year Term with 20% Buffer has a 5% minimum Cap.
– For Contracts issued on or after April 30, 2021, the 3-year Term with 10% or 20% Buffer has a 5%
minimum Cap, and 100% minimum Participation Rate.
– For Contracts issued on or after April 30, 2021, the 6-year Term with 10% Buffer has a 10% minimum
Cap, and 100% minimum Participation Rate.
• The 10% and 20% 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.
|
• For any Index Option with the Index Precision Strategy or Index Performance Strategy, 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. However, for any
Index Option with the Index Guard Strategy, we absorb any negative Index Return in excess of the -10% Floor, so
your maximum loss is
limited to -10% of the Index Option Value due to negative Index Returns.
|
• DPSCs, Precision 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 DPSCs, Precision Rates, Caps,
and Participation Rates
will be reduced to their respective minimums of 1.50%, 5%, 10%, or 100% as stated in the
table above.
|
• If your Contract is within its free look period you may be able to take advantage of any increase in initial DPSCs,
Precision Rates, Caps, and/or Participation Rates by
cancelling your Contract and purchasing a new Contract.
|
• If the initial DPSCs, Precision 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 Contract Value less withdrawal charge,
and final product and rider fees and contract maintenance
charge. This withdrawal is subject to 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.
|
• DPSCs, Precision 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, and between the 1-year Terms
for the Index Guard Strategy and Index Performance
Strategy. Initial and renewal rates may also be different from Contract-to-Contract. For example, assume that on
January 3, 2017 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 for new Contracts issued in 2017,
|
– 14% renewal rate for existing Contracts issued in 2016, and
|
– 12% renewal rate for existing Contracts issued in 2015.
|
|
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 Credit on
the Term End Date. However, the remaining amount in the Index
Options is eligible for a 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. However, you can specify from which
Allocation Option we deduct a partial withdrawal and any
financial adviser fees that you choose to have us pay from this
Contract. There is no consistent financial advantage to
deducting a partial withdrawal from any specific 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 Protection
Strategy 1-year Term
|
Credit is zero.
|
Credit is equal to the DPSC set on the Term Start
Date.
|
Index Precision
Strategy 1-year Term
• Not available to
Contracts issued before
August 24, 2015, or that
have a Contract number
starting with DAZ.
|
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 Precision Rate
set on the Term Start Date.
|
Index Guard Strategy
1-year Term
• Not available to
Contracts issued before
August 24, 2015, or that
have a Contract number
starting with DAZ.
|
Performance Credit is equal to the negative Index
Return subject to the -10% Floor.
If the Index Return is…
• -8%, the Performance Credit is -8%.
• -12%, the Performance Credit is -10%.
|
Performance Credit is equal to the Index Return up
to the Cap set on the Term Start Date.
Assume the Cap is 8%. If the Index Return is…
• 0%, the Performance Credit is zero.
• 6%, the Performance Credit is 6%.
• 12%, the Performance Credit is 8%.
|
Index Performance
Strategy 1-year Term
|
Performance Credit is equal to the negative Index
Return in excess of the 10% Buffer.
If the Index Return for the year is…
• -8%, the Performance Credit is zero.
• -12%, the Performance Credit is -2%.
|
Performance Credit is equal to the Index Return up
to the 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%.
|
Index Performance
Strategy 3-year Term
with 20% Buffer
• Not available to
Contracts issued before
August 24, 2015, or that
have a Contract number
starting with DAZ.
• Available only to
Contracts issued from
August 24, 2015, to April
29, 2021, that have a
Contract number
starting with AV.
|
Performance Credit is equal to the negative Index
Return in excess of the 20% Buffer.
If the Index Return for the Term is…
• -19%, the Performance Credit is zero.
• -24%, the Performance Credit is -4%.
|
Performance Credit is equal to the Index Return up
to any Cap set on the Term Start Date.
Assume the Cap for the 3-year Term 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 3-year Term is
uncapped the Performance
Credit would be 90%.
|
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
with 10% or 20%
Buffer and
Participation Rate
• Not available to
Contracts issued before
April 30, 2021.
|
Performance Credit is equal to the negative Index
Return in excess of the 10% or 20% 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%.
|
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
with 10% Buffer and
Participation Rate
• Not available to
Contracts issued before
April 30, 2021.
|
Performance Credit is equal to the negative Index
Return in excess of the 10% Buffer.
If the Index Return for the Term is…
• -19%, the Performance Credit is -9%.
• -24%, the Performance Credit is -14%.
|
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.
|
You cannot participate in
the Optional Reallocation Program if you select a 3-year or 6-year Term Index Option. If
you are participating in this program and select a 3-year
or 6-year Term Index Option, on the Term Start Date your
participation in this program ends and we will not reallocate
your 1-year Term Index Option Values.
|
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
Charge Base)
|
Product Fee(1)
|
1.25%
|
Issue Date
|
Non-Quarterly Contract Anniversaries
|
Quarterly Contract Anniversaries*
|
• The Charge Base is
equal to your initial
Purchase Payment.
• We begin calculating
and accruing the
daily product fee, on
the day after the
Issue Date.
|
• First we calculate and accrue the daily product
fee, using the Charge Base. If this is a
non-Business Day we use the Charge Base from
the end of the prior Business Day.
• Then if this is a Business Day we
increase/decrease the Charge Base as follows.
– If we receive an additional Purchase
Payment, we increase the Charge Base by
the dollar amount we receive.
– If you take a partial withdrawal (including any
financial adviser fees that you choose to have
us pay from this Contract), or we deduct
Contract fees and expenses other than the
withdrawal charge, we decrease the Charge
Base by the percentage of Contract Value
withdrawn (including any withdrawal charge).
All withdrawals you take reduce the Charge
Base, even Penalty-Free Withdrawals.
|
• First we process all daily transactions and
determine your Contract Value. Daily
transactions include any gains/losses due to
Variable Option performance or application of
any Daily Adjustment (or Credit if this is also the
Term End Date), any additional Purchase
Payment, any partial withdrawals you take
(including financial adviser fees that you choose
to have us pay from this Contract and any
withdrawal charge), and deductions we make for
other Contract fees and expenses (including
deduction of the accrued
daily product fee for
the prior quarter). All partial withdrawals you
take reduce the Charge Base, even Penalty-Free
Withdrawals.
– We deduct the accrued product fee for the
prior quarter on a dollar for dollar basis from
the Contract Value, and proportionately from
each Allocation Option.
• Then we set the Charge Base equal to this
Contract Value and we calculate and accrue the
next quarter’s daily product fee using the newly
set Charge Base.
* Or the next Business Day if the Quarterly Contract
Anniversary is a non-Business Day.
|
Example: Contract Value is $125,000; Charge
Base is $127,000; a $10,000 partial
withdrawal (including any withdrawal charge)
would decrease the Charge Base by $10,160.
[($10,000 ÷ $125,000) x $127,000]
Any increase/decrease to the Charge Base
will increase/decrease the daily product fee
we calculate and accrue on the next day.
|
||
Examples of how we
calculate the product fee are included in Appendix C.
|
We do not treat the deduction of the accrued product fee as a
withdrawal when computing your Guaranteed Death
Benefit Value (see section 10).
|
If on a Quarterly Contract Anniversary (or the next Business
Day if the Quarterly Contract Anniversary is a
non-Business Day) the Contract Value is less than the accrued
product fee, we deduct your total remaining Contract
Value to cover the accrued product fee and reduce your
Contract Value to zero. If the deduction of the accrued product
fee reduces your Contract Value to zero and your selected
death benefit has ended, we treat this as a full withdrawal and
your Contract ends.
|
When calculating the Maximum Anniversary Value, we deduct all
Contract fees and expenses on the Index Anniversary
(including the accrued product and rider fees if this is also
a Quarterly Contract Anniversary) before we capture any
annual investment gains. However, we do not treat the
deduction of the accrued rider fee as a withdrawal when
calculating the Maximum Anniversary Value (see section 10).
|
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 $30,000 and make
another Purchase Payment in the first month of the second
Contract Year of $70,000. In the third month of the third
Contract Year, your Contract Value is $110,000 and you
request a $52,000 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, and they do not reduce the
Withdrawal Charge 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.
|
|||
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 $30,000, which is subject to a 7%
withdrawal charge, and you receive $27,900. We determine
this amount as follows:
(amount withdrawn) x (1 – withdrawal charge) = the
amount you receive, or:
$30,000 x 0.93 = $27,900
The total amount we withdraw from the second Purchase
Payment is $15,326, which is subject to an 8% withdrawal
charge, and you receive $14,100. We determine this amount
as follows:
(amount withdrawn) x (1 – withdrawal charge) = the
amount you receive, or:
$15,326 x 0.92 = $14,100
|
|||
Number of Complete Years
Since Purchase Payment
|
Withdrawal Charge
Amount
|
|
||
0
1
2
3
4
5
6 years or more
|
8.5%
8%
7%
6%
5%
4%
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 $55,326 from your
Contract, of
which you received $52,000 and paid a
withdrawal
charge of $3,326. We also reduced the 1st
Purchase
Payment from $30,000 to $0, and your 2nd
Purchase
Payment from $70,000 to $54,674 ($70,000
– $15,326).
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:
|
– prior Penalty-Free Withdrawals,
|
– 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 Precision Strategy
and
Index Performance Strategy
|
Index Guard Strategy
|
Daily Adjustment Maximum Potential Loss
|
99%
|
35%
|
(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. For Contracts issued before August 24, 2015, or if
the Contract has a number starting with DAZ, we tax report to
both Joint Owner's based on the age of the older Joint
Owner. For Contracts issued on or after August 24, 2015 that
have a number starting with AV, 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.
|
• During the withdrawal charge period, systematic withdrawals in excess of the free withdrawal privilege are
subject to a withdrawal charge, ordinary
income taxes, and may also be subject to a 10% additional federal
tax for amounts withdrawn before age 59 1∕2.
|
• The systematic withdrawal program is not available while you are receiving RMD payments.
|
• You should consult a tax adviser before purchasing a Qualified Contract that is subject to RMD payments.
|
• The minimum distribution program is not available while you are receiving systematic withdrawals, or 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 2 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 on the Annuity Date (which may occur as
early as the second Contract Anniversary, or as late as age 100) 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, including the option to extend
your Annuity Date if available. If on your Annuity Date you
have not selected an Annuity Option, we make payments under
Annuity Option 2 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.
|
Automatic
Investment Plan
(AIP)
|
Allows you to make automatic Purchase Payments
by electronic money transfer from your savings,
checking, or brokerage account.
|
• Only available during the Accumulation Phase.
• Not available to certain Qualified Contracts.
• Payments must be on a monthly or quarterly basis.
• Subject to applicable Purchase Payment
restrictions.
• We reserve the right to discontinue or modify the
program.
|
Optional
Reallocation
Program for the
1-year Term Index
Options
|
Provides for automatic transfers among the 1-year
Term Index Options to help you maintain your
selected allocation percentages among these Index
Options.
|
• Only available during the Accumulation Phase.
• Not available if you select a 3-year or 6-year Term
Index Option.
• We reserve the right to discontinue or modify the
program.
|
Systematic
Withdrawal
Program
|
Allows you to take automatic withdrawals from your
Contract.
|
• Only available during the Accumulation Phase.
• Not available while you are participating in
minimum distribution program.
• 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 withdrawals are available.
• Program withdrawals count against free withdrawal
privilege.
• Program withdrawals may be subject to negative
Daily Adjustments.
• Program withdrawals are subject to withdrawal
charges and 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.
|
Standard Benefits (No Additional Charge)
|
||
Name of Benefit
|
Purpose
|
Brief Description of
Restrictions/Limitations
|
Minimum
Distribution
Program
|
Allows you to automatically take withdrawals to
satisfy the minimum distribution requirements
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.
|
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 to a
skilled nursing facility or hospital 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.
|
Standard Benefits (No Additional Charge)
|
||
Name of Benefit
|
Purpose
|
Brief Description of
Restrictions/Limitations
|
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.
|
Performance Lock
|
Allows you to capture the current Index Option Value
during the Term for an Index Option with the Index
Precision Strategy, Index Guard Strategy, or Index
Performance Strategy. Can help eliminate doubt
about future Index performance and possibly limit the
impact of negative performance.
A Performance Lock example is included in section
4, Valuing Your Contract — Performance Locks.
|
• Available during the Accumulation Phase.
• Not available with the Index Protection Strategy
Index Options.
• 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 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.
• 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.
|
Optional Benefits
|
|||
Name of
Benefit
|
Purpose
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
Maximum
Anniversary
Value 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
the Maximum Anniversary Value.
An example of the death benefit provided by the
Maximum Anniversary Value Death Benefit, and
calculation of the Maximum Anniversary Value 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.
|
0.20%
(as a
percentage of
the Charge
Base)
|
• Must be age 75 or younger to elect.
• Can only be added to a Contract at issue.
• Replaces the Traditional Death Benefit if
elected.
• Benefit cannot be removed from the Contract.
• Only available during the Accumulation Phase.
• Withdrawals, including any negative Daily
Adjustment, may significantly reduce the
benefit as indicated in section 1, Financial
Adviser Fee Deduction Example.
• Withdrawals reduce the likelihood of lock in.
• Restrictions on Purchase Payments may limit
the benefit.
• Annuitizing the Contract will end the benefit.
|
|
Contract
Value
|
Maximum Anniversary Value
|
Issue Date
|
$ 100,000
|
$ 100,000
|
1st Index Anniversary
|
$ 110,000
|
$ 110,000
|
2nd Index Anniversary
|
$ 95,000
|
$ 110,000
|
3rd Index Anniversary
|
$ 105,000
|
$ 110,000
|
4th Index Anniversary
|
$ 120,000
|
$ 120,000
|
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, and
|
• if you selected the Maximum Anniversary Value Death Benefit, we no longer assess its 0.20% rider fee.
|
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.
|
|
2021
|
2022
|
2023
|
Commission paid
|
$ 166,144,512.60
|
$ 143,419,929.03
|
$84,981,095.98
|
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)
|
Salary
(c)
|
Bonus
(d)
|
Stock
Awards
(e)(1)
|
Non-Equity
Incentive Plan Compensation
(g)
|
All Other
Compensation
(i)(2)
|
Total
(j)
|
Jasmine M. Jirele
President and Chief Executive Officer
|
2023
|
$800,000
|
$0
|
$1,640,232
|
$1,093,488
|
$45,473
|
$3,579,193
|
2022
|
$750,000
|
$200,000
|
$1,348,875
|
$899,250
|
$23,810
|
$3,221,935
|
|
2021
|
$561,958
|
$390,000
|
$1,068,303
|
$712,202
|
$22,516
|
$2,754,979
|
|
William E. Gaumond
Senior Vice President, Chief Financial
Officer and Treasurer
|
2023
|
$532,625
|
$200,000
|
$689,811
|
$459,874
|
$45,504
|
$1,927,814
|
2022
|
$505,225
|
$0
|
$942,501
|
$428,334
|
$24,842
|
$1,900,902
|
|
2021
|
$475,900
|
$300,000
|
$770,958
|
$513,922
|
$22,437
|
$2,083,267
|
|
Eric J. Thomes
Senior Vice President, Chief Distribution
Officer
|
2023
|
$579,750
|
$0
|
$764,483
|
$509,656
|
$49,169
|
$1,903,058
|
2022
|
$555,750
|
$0
|
$719,772
|
$479,848
|
$29,026
|
$1,784,396
|
|
2021
|
$535,500
|
$320,000
|
$867,510
|
$578,340
|
$22,548
|
$2,323,898
|
|
Neil H. McKay
Senior Vice President, Chief Actuary
|
2023
|
$523,750
|
$0
|
$647,408
|
$431,605
|
$47,550
|
$1,650,313
|
2022
|
$517,500
|
$0
|
$657,981
|
$438,654
|
$23,622
|
$1,637,757
|
|
2021
|
$510,000
|
$50,000
|
$926,200
|
$550,800
|
$24,397
|
$2,061,397
|
|
Gretchen Cepek
Senior Vice President, General Counsel and
Secretary
|
2023
|
$513,250
|
$0
|
$633,876
|
$362,584
|
$45,349
|
$1,555,059
|
2022
|
$487,125
|
$0
|
$549,641
|
$366,427
|
$23,294
|
$1,426,487
|
|
2021
|
$469,500
|
$110,000
|
$733,825
|
$422,550
|
$22,167
|
$1,758,042
|
Name
|
Year
|
Spousal
Travel(3)
|
Milestone/
Anniversary/
Recognition(4)
|
Life
Insurance
Premiums
|
Employer
Match to
401(k) Plan
|
ASAAP
Contribution(5)
|
Other
Compensation(6)
|
Total
|
Jasmine M.
Jirele
|
2023
|
--
|
--
|
$723
|
$22,500
|
$2,250
|
$20,000
|
$45,473
|
2022
|
--
|
$250
|
$685
|
$20,500
|
$2,375
|
--
|
$23,810
|
|
2021
|
--
|
$350
|
$416
|
$19,500
|
$2,250
|
--
|
$22,516
|
|
William E.
Gaumond
|
2023
|
--
|
--
|
$754
|
$24,750
|
--
|
$20,000
|
$45,504
|
2022
|
--
|
$1,270
|
$697
|
$20,500
|
$2,375
|
--
|
$24,842
|
|
2021
|
--
|
--
|
$687
|
$19,500
|
$2,250
|
--
|
$22,437
|
|
Eric J.
Thomes
|
2023
|
$3,545
|
$50
|
$824
|
$24,750
|
--
|
$20,000
|
$49,169
|
2022
|
$5,366
|
--
|
$785
|
$22,875
|
--
|
--
|
$29,026
|
|
2021
|
--
|
--
|
$798
|
$19,500
|
$2,250
|
--
|
$22,548
|
|
Neil H. McKay
|
2023
|
$2,039
|
--
|
$761
|
$24,750
|
--
|
$20,000
|
$47,550
|
2022
|
--
|
--
|
$747
|
$22,875
|
--
|
--
|
$23,622
|
|
2021
|
$200
|
$1,700
|
$747
|
$21,750
|
--
|
--
|
$24,397
|
|
Gretchen
Cepek
|
2023
|
$175
|
--
|
$424
|
$24,750
|
--
|
$20,000
|
$45,349
|
2022
|
--
|
--
|
$419
|
$22,875
|
--
|
--
|
$23,294
|
|
2021
|
--
|
--
|
$417
|
$21,750
|
--
|
--
|
$22,167
|
Name
(a)
|
Grant Date
(b)
|
Estimated Future Payouts Under
Non-Equity
Incentive Plan Awards(1)
|
Estimated Future Payouts Under Equity
Incentive
Plan Awards(2,3)
|
||||
Threshold ($)
(c)
|
Target ($)
(d)
|
Maximum ($)
(e)
|
Threshold ($)
(f)
|
Target ($)
(g)
|
Maximum ($)
(h)
|
||
Jasmine M. Jirele
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$1,320,000
|
$5,940,000
|
AIP Award
|
|
$0
|
$880,000
|
$1,320,000
|
|
|
|
William E. Gaumond
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$575,322
|
$2,588,949
|
AIP Award
|
|
$0
|
$383,548
|
$575,322
|
|
|
|
Eric J. Thomes
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$626,215
|
$2,817,968
|
AIP Award
|
|
$0
|
$417,477
|
$626,216
|
|
|
|
Neil H. McKay
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$565,668
|
$2,545,506
|
AIP Award
|
|
$0
|
$377,112
|
$565,668
|
|
|
|
Gretchen Cepek
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$462,008
|
$2,079,036
|
AIP Award
|
|
$0
|
$308,005
|
$462,008
|
|
|
|
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
|
|
|
|
1,886
|
$505,090
|
|
2,407
|
$644,619
|
|
6,195
|
$1,659,083
|
|
7,371
|
$1,974,028
|
William E. Gaumond
|
|
|
|
1,948
|
$521,694
|
|
2,463
|
$659,616
|
|
4,471
|
$1,197,379
|
|
5,150
|
$1,379,222
|
Eric J. Thomes
|
|
|
|
1,474
|
$394,752
|
|
3,625
|
$970,811
|
|
5,031
|
$1,347,352
|
|
3,933
|
$1,053,297
|
Neil H. McKay
|
|
|
|
2,123
|
$568,561
|
|
2,503
|
$670,328
|
|
5,362
|
$1,435,997
|
|
3,596
|
$963,045
|
Gretchen Cepek
|
|
|
|
1,512
|
$404,929
|
|
1,789
|
$479,112
|
|
4,246
|
$1,137,121
|
|
3,003
|
$804,233
|
Name
|
Stock Awards
|
|
Number of
Shares
Acquired
on Vesting (#)
|
Value Realized
on Vesting ($)(1)
|
|
Jasmine M. Jirele
|
1,467
|
$341,350
|
William E. Gaumond
|
1,538
|
$357,870
|
Eric J. Thomes
|
457
|
$106,337
|
Neil H. McKay
|
1,731
|
$402,779
|
Gretchen Cepek
|
1,413
|
$328,785
|
NEOs
|
Lump Sum Payment
|
Jasmine M. Jirele
|
$1,200,000
|
William E. Gaumond
|
$807,750
|
Eric J. Thomes
|
$878,250
|
Neil H. McKay
|
$787,500
|
Gretchen Cepek
|
$780,000
|
Name
|
Fees Earned
or Paid in
Cash
($)(1)
|
Total
($)
|
(a)
|
(b)
|
(h)
|
Andreas G. Wimmer(2)
Chair of the Board
|
N/A
|
N/A
|
Jasmine M. Jirele(3)
President and Chief Executive
Officer
|
N/A
|
N/A
|
William E. Gaumond(3)
Senior Vice President, Chief
Financial Officer and Treasurer
|
N/A
|
N/A
|
Lauren Kathryn Day(2)
Non-Independent Director
|
N/A
|
N/A
|
Walter R. White
Former President and Chief
Executive Officer; Independent
Director
|
$67,500
|
$67,500
|
Howard E. Woolley
Independent Director
|
$67,500
|
$67,500
|
Kevin E. Walker
Independent Director
|
$67,500
|
$67,500
|
Udo Frank
Independent Director
|
$97,500
|
$97,500
|
The Alternate Minimum Value continues to be available to
Contracts issued in Pennsylvania. For all other states, the
Alternate Minimum Value became unavailable to Contracts:
|
• issued in California, Hawaii, Indiana, Montana, Nebraska, and Rhode Island on or after January 27, 2020; and
|
• issued in all other states on or after November 18, 2019.
|
We use 70% if your Contract was issued in ….
|
We use 87.5% if your Contract was issued in ….
|
• Pennsylvania from April 29, 2019 to February 21, 2020,
• California and Montana on or after July 22, 2019
• New Hampshire on or after June 24, 2019
• any other state on or after April 29, 2019
|
• Pennsylvania before April 29, 2019, or on or after February
24, 2020,
• California and Montana before July 22, 2019
• New Hampshire before June 24, 2019
• any other state before April 29, 2019
|
Crediting Method / Index Options
|
Availability Restrictions:
|
Index Protection Strategy
|
– Not available to Contracts issued in Washington on or before
November 15, 2019.
– Not available to Contracts issued in Missouri from April 25, 2016
through November 15, 2019.
– Not available to Contracts issued in Delaware if issued before
August 24, 2015, or if the Contract has a number starting with DAZ.
|
Index Protection Strategy with the Russell 2000® Index, Nasdaq-100®
Index, and EURO STOXX 50® available only to Contracts issued on
or after August 24, 2015 that have a Contract number starting with AV
|
– For Contracts with a number starting with AV these first became
available to newly issued Contracts on May 1, 2018, and to
Contracts issued before May 1, 2018 they first became available on
the first Index Anniversary that occurred on or after June 4, 2018.
– Not available to Contracts issued before August 24, 2015, or if the
Contract has a number starting with DAZ.
|
Index Precision Strategy available only to Contracts issued on or after
August 24, 2015 that have a Contract number starting with AV
|
– For Contracts with a number starting with AV this first became
available to newly issued Contracts on November 14, 2017, and to
Contracts issued before November 14, 2017 it first became
available on the first Index Anniversary that occurred on or after
January 15, 2018.
– Not available to Contracts issued before August 24, 2015, or that
have a Contract number starting with DAZ.
|
Index Precision Strategy with the EURO STOXX 50®
|
– Not available to Contracts issued in Missouri before April 25, 2016.
|
Index Guard Strategy available only to Contracts issued on or after
August 24, 2015 that have a Contract number starting with AV
|
– For Contracts with a number starting with AV this first became
available to newly issued Contracts on August 24, 2015.
– Not available to Contracts issued in Missouri before April 25, 2016.
– Not available to Contracts issued before August 24, 2015, or that
have a Contract number starting with DAZ.
|
Index Performance Strategy 1-year Term with the EURO STOXX 50®
available only to Contracts issued on or after August 24, 2015 that
have a Contract number starting with AV
|
– For Contracts with a number starting with AV this first became
available to newly issued Contracts on August 24, 2015.
– Not available to Contracts issued in Missouri before April 25, 2016.
– Not available to Contracts issued before August 24, 2015, or if the
Contract has a number starting with DAZ.
|
iShares® MSCI Emerging Markets ETF with the Index Protection
Strategy, Index Precision Strategy, Index Guard Strategy, and Index
Performance Strategy 1-year Term available only to Contracts issued
on or after August 24, 2015 that have a Contract number starting with
AV
|
– Not available to Contracts issued before August 24, 2015, or if the
Contract has a number starting with DAZ.
– For Contracts issued in California and Montana, these first became
available to newly issued Contracts on July 22, 2019.
– For Contracts issued in New Hampshire, these first became to
newly issued Contracts on June 24, 2019.
– For Contracts issued in all other states, these first became
available to newly issued Contracts on April 29, 2019.
– For Contracts issued before April 29, 2019, these became available
to Contracts with a number starting with AV on the first Index
Anniversary that occurred on or after June 3, 2019.
|
Crediting Method / Indexes
|
Availability Restrictions:
|
Index Performance Strategy 3-year Term with 20% Buffer available
only to Contracts issued from August 24, 2015, to April 29, 2021, that
have a Contract number starting with AV
|
– Not available to Contracts issued before August 24, 2015; or that
have a Contract number starting with DAZ.
– For Contracts issued in Virginia, these first became available to
newly issued Contracts on May 19, 2020.
– For Contracts issued in Montana, these first became available to
newly issued Contracts on June 23, 2020.
– For Contracts issued in Pennsylvania, these first became available
to newly issued Contracts on July 21, 2020.
– For Contracts issued in all other states, it first became available to
newly issued Contracts on May 1, 2020.
– For Contracts issued in New Hampshire these were never available
to newly issued Contracts. However, these Index Options did first
became available to inforce Contracts on the first Index Anniversary
that occurred on or after June 21, 2021.
– For Contracts issued before May 1, 2020 that have a Contract
number starting with AV, in all other states these first became
available on the first Index Anniversary that occurred on or after
November 23, 2020.
|
Index Performance Strategy 3-year and 6-year Terms with
Participation Rate available only to Contracts issued since April 30,
2021
|
– Not available to Contracts issued before April 30, 2021.
– For Contracts issued in Montana, New Jersey, Utah, and Virginia,
these first became available to newly issued Contracts on June 21,
2021.
– For Contracts issued in Louisiana, these first became available to
newly issued Contracts on July 19, 2021.
– For Contracts issued in Hawaii, these first became available to
newly issued Contracts on October 18, 2021.
– For Contracts issued in all other states, they first became available
to newly issued Contracts on April 30, 2021.
|
CONTRACTS WITHOUT THE INDEX
PROTECTION STRATEGY: If in future years the renewal Cap and Precision
Rates are not acceptable to you, you will not be able to
transfer into the Index Protection Strategy and take advantage of
its principal protection. This would subject you to ongoing
market risk and you could lose principal and previous
earnings.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
California
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We cannot restrict assignments or changes of
ownership
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner is
a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the Owner’s
death the
Beneficiary(s) will only receive the Contract Value.
|
|
Free Look/Right to Examine
Period
See section 3
|
For Owners age 60 or older (or Annuitants age 60 or older for
non-individually owned Contracts), we are required to allocate
your initial
Purchase Payment to the AZL Government Money Market Fund
during the
30 day free look period unless you specify otherwise on the
appropriate
form. If you want to immediately apply your Purchase Payment
to the Index
Options or other Variable Options you must opt out of this
allocation. If you
do not opt out of this allocation to the AZL Government Money
Market Fund
your Index Effective Date cannot occur until the free look
period has ended.
|
Connecticut
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We can only restrict assignments to
settlement companies and
institutional investors as described in your
Contract.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner is
a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the Owner’s
death the
Beneficiary(s) will only receive the Contract Value.
|
Delaware
|
Our Unregistered Separate
Account
See section 12
|
All of the assets backing the Index Precision Strategy, Index
Guard Strategy
and Index Performance Strategy Index Options are allocated to
Separate
Account IANA. We do not move assets between the general
account and
Separate Account IANA for Contracts issued in Delaware.
|
Florida
|
Withdrawal Charges
See Fee Tables and section 6
|
The total withdrawal charge on a partial or full withdrawal
cannot be greater
than 10% of the Contract Value withdrawn.
|
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We cannot restrict assignments or changes of
ownership.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner is
a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the Owner’s
death the
Beneficiary(s) will only receive the Contract Value.
|
|
Purchase Requirements
See section 3
|
• For Contracts issued before May 23, 2017: The
maximum total
Purchase Payments that we can accept is $1 million. We can
only decline
a Purchase Payment if it would cause total Purchase Payments
to be
more than $1 million, or if it would otherwise violate the
Purchase Payment
restrictions of your Contract (for example, we do not allow
additional
Purchase Payments on or after the Annuity Date).
• For Contracts issued on or after May 23, 2017: We can only decline a
Purchase Payment if it would cause total Purchase Payments to
be more
than $1 million, or if it would otherwise violate the
Purchase Payment
restrictions of your Contract (for example, we do not allow
additional
Purchase Payments on or after the Annuity Date).
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
Florida
(continued)
|
When Annuity Payments
Begin
See section 8
|
The earliest acceptable Annuity Date is one year after the
Issue Date.
|
Iowa
|
Withdrawal Charges
See Fee Tables and section 6
|
The withdrawal charge is 8.25%, 8%, 7%, 6%, 5%, 4% and 0% for
time
periods referenced in the Fee Tables and section 6.
|
Maryland
|
Purchase Requirements
See section 3
|
We can only decline a Purchase Payment if it would cause total
Purchase
Payments to be more than $1 million, or if it would otherwise
violate the
Purchase Payment restrictions of your Contract (for example,
we do not
allow additional Purchase Payments on or after the Annuity
Date).
|
Massachusetts
|
Waiver of Withdrawal Charge
Benefit
See section 7
|
The waiver of withdrawal charge benefit is not available.
|
Mississippi
|
Withdrawal Charges
See Fee Tables and section 6
|
The withdrawal charge is 8.5%, 7.5%, 6.5%, 5.5%, 5%, 4% and 0%
for time
periods referenced in the Fee Tables and section 6.
|
|
Purchase Requirements
See section 3
|
• For Contracts issued before November 18, 2019: We
do not accept
additional Purchase Payments on or after the first Contract
Anniversary.
We also limit the amount of additional Purchase Payments you
can make
on or after the first Quarterly Contract Anniversary to the
amount of total
Purchase Payments we received before the first Quarterly
Contract
Anniversary.
• For Contracts issued on or after November 18, 2019:
Each Contract
Year that we allow additional Purchase Payments you cannot
add more
than your initial amount without our prior approval. Your
initial amount is all
Purchase Payments received before the first Quarterly
Contract
Anniversary of the first Contract Year. We do not allow
additional Purchase
Payments on or after the tenth Contract Anniversary. However,
we allow
you to add up to the initial amount in the remainder of the
first Contract
Year (the first Quarterly Contract Anniversary to the last
Business Day
before the first Contract Anniversary).
|
Missouri
|
Our Unregistered Separate
Account
See section 12
|
All of the assets backing the Index Precision Strategy, Index
Guard Strategy
and Index Performance Strategy Index Options are allocated to
Separate
Account IANA. We do not move assets between the general
account and
Separate Account IANA for Contracts issued in Missouri.
|
Montana
|
Access to Your Money
See section 7
|
If you take a partial withdrawal that reduces the Contract
Value below
$2,000, we contact you by phone and give you the option of
modifying your
withdrawal request. If we cannot reach you, we process your
request as a
full withdrawal.
|
New Hampshire
|
Waiver of Withdrawal Charge
Benefit
See section 7
|
The definition of skilled nursing facility is an institution
operated in
accordance with state law.
|
New Jersey
|
Joint Owner
See section 2
|
We allow civil union partners to be Joint Owners.
|
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We cannot restrict assignments or changes of
ownership.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner is
a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the Owner’s
death the
Beneficiary(s) will only receive the Contract Value.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
New Jersey
(continued)
|
Purchase Requirements
See section 3
|
The maximum total Purchase Payments that we can accept is $1
million. We
can only decline a Purchase Payment if it would cause total
Purchase
Payments to be more than $1 million, or if it would otherwise
violate the
Purchase Payment restrictions of your Contract (for example,
we do not
allow additional Purchase Payments on or after the Annuity
Date).
|
Ohio
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We cannot restrict assignments or changes of
ownership.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner is
a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the Owner’s
death the
Beneficiary(s) will only receive the Contract Value.
|
Pennsylvania
|
Withdrawal Charges
See Fee Tables and section 6
|
The withdrawal charge is 8.25%, 8%, 7%, 6%, 5%, 4% and 0% for
time
periods referenced in the Fee Tables and section 6.
|
|
Waiver of Withdrawal Charge
Benefit
See section 7
|
Not available if on the Issue Date an Owner was first
diagnosed with a
terminal illness. Not available until after the first Contract
Anniversary.
Separate periods of confinement occurring within six months of
a prior
confinement for the same purpose are considered the same
confinement. A
new 90-day confinement is applied when it is for a nonrelated
cause and
occurs more than six months from the most recent confinement.
Licensing of
the skilled nursing facility or hospital is only required if
the jurisdiction
requires it.
|
Texas
|
Purchase Requirements
See section 3
|
• For Contracts issued from April 29, 2019 through November 15, 2019:
We do not accept additional Purchase Payments on or after the
first
Contract Anniversary.
• For Contracts issued on or after November 18, 2019:
We do not
accept additional Purchase Payments on or after the tenth
Contract
Anniversary.
|
|
Access to Your Money
See section 7
|
We only treat a partial withdrawal that reduces the Contract
Value below
$2,000 as a full withdrawal if you have not made an additional
Purchase
Payment in the past two calendar years.
|
|
Our Unregistered Separate
Account
See section 12
|
For Contracts
issued before May 1, 2020: We hold all assets that you
allocate to the Index Precision Strategy, Index Guard Strategy
and Index
Performance Strategy Index Options that are not invested in
the general
account in an unregistered, non-unitized, insulated separate
account
(Separate Account IATX). Separate Account IATX is structured
differently
from Separate Account IANA. Unlike Separate Account IANA,
Separate
Account IATX is for the exclusive benefit of persons
purchasing a Contract in
the State of Texas. Separate Account IATX is insulated from
the claims of
creditors and Contract purchasers are given priority with
regard to Separate
Account IATX’s assets over Contract purchasers from other
states as well as
general creditors. Separate Account IATX was established under
Minnesota
law for the benefit of Texas Contract purchasers. Separate
Account IATX
supports our obligations to pay Performance Credits to Texas
Contract
Owners. Allocations and reallocations to and from the Separate
Account
IATX are managed in the same manner as Separate Account IANA.
Neither
Texas Contract purchasers nor these Index Options participate
in any way in
the performance of assets held in Separate Account IATX.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
Utah
|
Purchase Requirements
See section 3
|
• For Contracts issued before November 18, 2019: We
do not accept
additional Purchase Payments on or after the first Contract
Anniversary.
• For Contracts issued on or after November 18, 2019:
We do not accept
additional Purchase Payments on or after the tenth Contract
Anniversary.
|
Washington
|
Our Unregistered Separate
Account
See section 12
|
All of the assets backing the Index Precision Strategy, Index
Guard Strategy
and Index Performance Strategy Index Options are allocated to
Separate
Account IANA. We do not move assets between the general
account and
Separate Account IANA for Contracts issued in Washington.
|
Wisconsin
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We cannot restrict assignments or changes of
ownership.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner is
a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the Owner’s
death the
Beneficiary(s) will only receive the Contract Value.
|
Investment Objectives
|
Fund and
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%
|
Long-term capital appreciation with
preservation of capital as an
important consideration
|
AZL® MVP
Balanced Index
Strategy Fund(2)
Adviser: Allianz Investment
Management LLC
|
0.70%
|
12.85%
|
5.55%
|
4.64%
|
Long-term capital appreciation
|
AZL® MVP
Growth Index
Strategy Fund(2)
Adviser: Allianz Investment
Management LLC
|
0.68%
|
16.81%
|
7.82%
|
5.95%
|
Part I |
Year ended December 31, | ||||||||||||||||||||||||||||||||
Selected income data | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 17,633 | 14,427 | 14,291 | 10,542 | 13,029 | ||||||||||||||||||||||||||
Net investment income | 4,822 | 4,544 | 4,866 | 4,864 | 4,839 | |||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | (1,535) | (545) | 639 | (45) | 329 | |||||||||||||||||||||||||||
Fees from separate accounts | 436 | 488 | 574 | 567 | 613 | |||||||||||||||||||||||||||
Other income | 248 | (503) | (32) | 694 | (13) | |||||||||||||||||||||||||||
Total income | 21,604 | 18,411 | 20,338 | 16,622 | 18,797 | |||||||||||||||||||||||||||
Policyholder benefits and surrenders | 12,444 | 8,499 | 10,876 | 10,343 | 10,368 | |||||||||||||||||||||||||||
Change in aggregate reserves | 3,482 | 3,113 | 4,316 | 2,465 | 1,034 | |||||||||||||||||||||||||||
General and administrative and commission | 2,682 | 2,236 | 2,195 | 1,739 | 1,878 | |||||||||||||||||||||||||||
Net transfers to separate accounts | 834 | 1,732 | 2,424 | 1,460 | 5,254 | |||||||||||||||||||||||||||
Total benefits and other expenses | 19,442 | 15,580 | 19,811 | 16,007 | 18,534 | |||||||||||||||||||||||||||
Income tax expense (benefit) | 574 | (2) | 1,091 | 18 | 773 | |||||||||||||||||||||||||||
Net realized capital (loss) gain | (797) | (1,986) | 1,856 | 142 | 1,053 | |||||||||||||||||||||||||||
Net income | $ | 791 | 847 | 1,292 | 739 | 543 | ||||||||||||||||||||||||||
Capital and Surplus: | ||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 522 | (516) | (142) | (61) | 719 | ||||||||||||||||||||||||||
Dividends to parent | (500) | (4,100) | (900) | (750) | (325) | |||||||||||||||||||||||||||
Other change in capital & surplus | (294) | (421) | 2,794 | (220) | 441 | |||||||||||||||||||||||||||
Net change in capital & surplus | $ | 519 | (4,190) | 3,044 | (292) | 1,378 | ||||||||||||||||||||||||||
*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 | $ | 121,141 | 115,664 | 122,829 | 125,229 | 121,870 | ||||||||||||||||||||||||||
Investment income due and accrued | 1,471 | 1,273 | 947 | 1,040 | 1,031 | |||||||||||||||||||||||||||
Other admitted assets | 2,473 | 1,684 | 1,480 | 1,218 | 945 | |||||||||||||||||||||||||||
Separate account assets | 52,781 | 43,502 | 48,279 | 45,901 | 34,638 | |||||||||||||||||||||||||||
Total admitted assets | 177,866 | 162,123 | 173,535 | 173,388 | 158,484 | |||||||||||||||||||||||||||
Total policyholder liabilities | 107,892 | 105,368 | 103,933 | 109,353 | 107,098 | |||||||||||||||||||||||||||
Other liabilities | 10,159 | 6,738 | 10,618 | 10,473 | 8,794 | |||||||||||||||||||||||||||
Separate account liabilities | 52,781 | 43,502 | 48,279 | 45,901 | 34,638 | |||||||||||||||||||||||||||
Total liabilities | 170,832 | 155,608 | 162,830 | 165,727 | 150,530 | |||||||||||||||||||||||||||
Total capital and surplus | $ | 7,034 | 6,515 | 10,705 | 7,661 | 7,954 |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 17,633 | 14,427 | 14,291 | $ | 3,206 | 22.2 | % | $ | 136 | 1.0 | % | |||||||||||||||||||||||||||||
Net investment income | 4,822 | 4,544 | 4,866 | 278 | 6.1 | (322) | (6.6) | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | (1,535) | (545) | 639 | (990) | (181.7) | (1,184) | (185.3) | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 436 | 488 | 574 | (52) | (10.7) | (86) | (15.0) | ||||||||||||||||||||||||||||||||||
Other income | 248 | (503) | (32) | 751 | 149.3 | (471) | (1,471.9) | ||||||||||||||||||||||||||||||||||
Total income | 21,604 | 18,411 | 20,338 | 3,193 | 17.3 | (1,927) | (9.5) | ||||||||||||||||||||||||||||||||||
Benefits and other expenses:
|
|||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 12,444 | 8,499 | 10,876 | 3,945 | 46.4 | (2,377) | (21.9) | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 3,482 | 3,113 | 4,316 | 369 | 11.9 | (1,203) | (27.9) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 2,682 | 2,236 | 2,195 | 446 | 19.9 | 41 | 1.9 | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | 834 | 1,732 | 2,424 | (898) | (51.8) | (692) | (28.5) | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 19,442 | 15,580 | 19,811 | 3,862 | 24.8 | (4,231) | (21.4) | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | 2,162 | 2,831 | 527 | (669) | (23.6) | 2,304 | 437.2 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 574 | (2) | 1,091 | 576 | NM** | (1,093) | NM** | ||||||||||||||||||||||||||||||||||
Net realized capital (loss) gain | (797) | (1,986) | 1,856 | 1,189 | 59.9 | (3,842) | (207.0) | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 791 | 847 | 1,292 | (56) | (6.6) | % | $ | (445) | (34.4) | % | ||||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 522 | (516) | (142) | 1,038 | 201.2 | % | $ | (374) | (263.4) | % | ||||||||||||||||||||||||||||||
Dividends to parent | (500) | (4,100) | (900) | 3,600 | 87.8 | (3,200) | (355.6) | ||||||||||||||||||||||||||||||||||
Other change in capital & surplus | (294) | (421) | 2,794 | 127 | 30.2 | (3,215) | (115.1) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 519 | (4,190) | 3,044 | 4,709 | 112.4 | % | $ | (7,234) | (237.6) | % | ||||||||||||||||||||||||||||||
*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* | $ | 15,906 | 12,811 | 12,766 | $ | 3,095 | 24.2 | % | $ | 45 | 0.4 | % | |||||||||||||||||||||||||||||
Net investment income | 4,289 | 4,056 | 4,467 | 233 | 5.7 | (411) | (9.2) | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | (1,554) | (531) | 656 | (1,023) | (192.7) | (1,187) | (180.9) | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 436 | 488 | 574 | (52) | (10.7) | (86) | (15.0) | ||||||||||||||||||||||||||||||||||
Other income | 239 | (501) | (37) | 740 | 147.7 | (464) | (1,254.1) | ||||||||||||||||||||||||||||||||||
Total income | 19,316 | 16,323 | 18,426 | 2,993 | 18.3 | (2,103) | (11.4) | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 11,993 | 8,150 | 10,584 | 3,843 | 47.2 | (2,434) | (23.0) | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 1,865 | 2,024 | 2,789 | (159) | (7.9) | (765) | (27.4) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 2,207 | 1,827 | 1,756 | 380 | 20.8 | 71 | 4.0 | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | 836 | 1,734 | 2,426 | (898) | (51.8) | (692) | (28.5) | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 16,901 | 13,735 | 17,555 | 3,166 | 23.1 | (3,820) | (21.8) | ||||||||||||||||||||||||||||||||||
Pretax income | 2,415 | 2,588 | 871 | (173) | (6.7) | 1,717 | 197.1 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 641 | (2) | 1,802 | 643 | NM** | (1,804) | NM** | ||||||||||||||||||||||||||||||||||
Net realized capital (loss) gain | (839) | (1,701) | 1,519 | 862 | 50.7 | (3,220) | (212.0) | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 935 | 889 | 588 | $ | 46 | 5.2 | % | $ | 301 | 51.2 | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 346 | (423) | (125) | $ | 769 | 181.8 | % | $ | (298) | (238.4) | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | (336) | (400) | 2,792 | 64 | 16.0 | (3,192) | (114.3) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 945 | 66 | 3,255 | $ | 879 | 1,331.8 | % | $ | (3,189) | (98.0) | % | |||||||||||||||||||||||||||||
*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 | |||||||||||||||||||||||||||||||||||||
Individual Annuities | |||||||||||||||||||||||||||||||||||||||||
Deposits | $ | 16,986 | 13,439 | 13,226 | 3,547 | 26.4 | % | 213 | 1.6 | % | |||||||||||||||||||||||||||||||
In-force | 146,794 | 139,294 | 141,131 | 7,500 | 5.4 | % | (1,837) | (1.3) | % |
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)% | ||||||||||||||||||||||||
BUDBI
|
7.97% | (13.57)% | 6.35% | 21.54% | (19.92)% | ||||||||||||||||||||||||
BUDBI II
|
6.81% | (10.80)% | 4.60% | 17.61% | (15.40)% |
As of 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% | (36bps) | 226bps | ||||||||||||||||||||||||
Swap rate - 20 year | 3.51% | 3.74% | 1.76% | (23bps) | 198bps |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations | $ | 1,549 | 1,447 | 1,363 | $ | 102 | 7.0 | % | $ | 84 | 6.2 | % | |||||||||||||||||||||||||||||
Net investment income | 369 | 328 | 259 | 41 | 12.5 | 69 | 26.6 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 13 | (21) | (23) | 34 | 161.9 | 2 | 8.7 | ||||||||||||||||||||||||||||||||||
Other income | 6 | (1) | 3 | 7 | 700.0 | (4) | (133.3) | ||||||||||||||||||||||||||||||||||
Total income | 1,937 | 1,753 | 1,602 | 184 | 10.5 | 151 | 9.4 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 310 | 232 | 194 | 78 | 33.6 | 38 | 19.6 | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 1,340 | 869 | 1,216 | 471 | 54.2 | (347) | (28.5) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 420 | 389 | 386 | 31 | 8.0 | 3 | 0.8 | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 2,070 | 1,490 | 1,796 | 580 | 38.9 | (306) | (17.0) | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | (133) | 263 | (194) | (396) | (150.6) | 457 | 235.6 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (35) | — | (401) | (35) | NM* | 401 | 100.0 | ||||||||||||||||||||||||||||||||||
Net realized capital (loss) gain | 41 | (297) | 337 | 338 | 113.8 | (634) | (188.1) | ||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (57) | (34) | 544 | $ | (23) | (67.6) | % | $ | (578) | (106.3) | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 167 | (95) | (9) | $ | 262 | 275.8 | % | $ | (86) | (955.6) | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | (2) | (14) | 1 | 12 | 85.7 | (15) | (1,500.0) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 108 | (143) | 536 | $ | 251 | 175.5 | % | $ | (679) | (126.7) | % | |||||||||||||||||||||||||||||
*Not meaningful
|
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Life | |||||||||||||||||||||||||||||||||||||||||
First year and renewal premiums | $ | 1,623 | 1,510 | 1,426 | $ | 113 | 7.5 | % | $ | 84 | 5.9 | % | |||||||||||||||||||||||||||||
In-force | 87,611 | 78,274 | 62,372 | 9,337 | 11.9 | 15,902 | 25.5 |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations | $ | 178 | 169 | 162 | $ | 9 | 5.3 | % | $ | 7 | 4.3 | % | |||||||||||||||||||||||||||||
Net investment income | 164 | 160 | 140 | 4 | 2.5 | 20 | 14.3 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 6 | 7 | 6 | (1) | (14.3) | 1 | 16.7 | ||||||||||||||||||||||||||||||||||
Other income | 3 | (1) | 2 | 4 | 400.0 | (3) | (150.0) | ||||||||||||||||||||||||||||||||||
Total income | 351 | 335 | 310 | 16 | 4.8 | 25 | 8.1 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 141 | 117 | 98 | 24 | 20.5 | 19 | 19.4 | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 277 | 220 | 311 | 57 | 25.9 | (91) | (29.3) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 55 | 20 | 52 | 35 | 175.0 | (32) | (61.5) | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | (1) | (2) | (2) | 1 | 50.0 | — | — | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 472 | 355 | 459 | 117 | 33.0 | (104) | (22.7) | ||||||||||||||||||||||||||||||||||
Pretax (loss) income | (121) | (20) | (149) | (101) | (505.0) | 129 | 86.6 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (32) | — | (310) | (32) | NM* | 310 | 100.0 | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | 1 | 12 | — | (11) | (91.7) | 12 | NM* | ||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (88) | (8) | 161 | $ | (80) | (1,000.0) | % | $ | (169) | (105.0) | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 9 | 3 | (8) | $ | 6 | 200.0 | % | $ | 11 | 137.5 | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | 45 | (7) | 1 | 52 | 742.9 | (8) | (800.0) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | (34) | (12) | 154 | $ | (22) | (183.3) | % | $ | (166) | (107.8) | % | |||||||||||||||||||||||||||||
*Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Legacy | |||||||||||||||||||||||||||||||||||||||||
Gross premiums written
|
$ | 277 | 266 | 258 | $ | 11 | 4.1 | % | $ | 8 | 3.1 | % | |||||||||||||||||||||||||||||
In-force
|
2,248 | 2,421 | 2,611 | (173) | (7.1) | (190) | (7.3) |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Dividends to parent | $ | (500) | (4,100) | (900) | $ | 3,600 | 12.2 | % | $ | (3,200) | (455.6) | % |
2023 | 2022 | ||||||||||||||||||||||
Carrying value | % of total | Carrying value | % of total | ||||||||||||||||||||
Bonds | $ | 89,197 | 73.6 | % | $ | 89,143 | 77.2 | % | |||||||||||||||
Stocks | 323 | 0.3 | 251 | 0.2 | |||||||||||||||||||
Investment in subsidiaries | 1,442 | 1.2 | 1,442 | 1.2 | |||||||||||||||||||
Mortgage loans on real estate | 18,115 | 15.0 | 17,728 | 15.3 | |||||||||||||||||||
Real estate | 92 | 0.1 | 82 | 0.1 | |||||||||||||||||||
Cash and cash equivalents | 3,431 | 2.8 | 2,232 | 1.9 | |||||||||||||||||||
Policy loans | 509 | 0.4 | 309 | 0.3 | |||||||||||||||||||
Derivative assets | 3,278 | 2.7 | 973 | 0.8 | |||||||||||||||||||
Other invested assets | 4,754 | 3.9 | 3,504 | 3.0 | |||||||||||||||||||
Total cash and invested assets | $ | 121,141 | 100.0 | % | $ | 115,664 | 100.0 | % |
2023 | |||||||||||||||||||||||
NAIC Classes | Fair Value | % of Total | Amortized Cost | % of Total | |||||||||||||||||||
1 | $ | 46,990 | 57.2 | % | $ | 50,969 | 57.1 | % | |||||||||||||||
2 | 33,518 | 40.8 | 36,377 | 40.9 | |||||||||||||||||||
Investment grade | 80,508 | 98.0 | 87,346 | 98.0 | |||||||||||||||||||
3 | 1,349 | 1.6 | 1,434 | 1.6 | |||||||||||||||||||
4 | 304 | 0.4 | 348 | 0.4 | |||||||||||||||||||
5 | 33 | — | 40 | — | |||||||||||||||||||
6 | 29 | — | 29 | — | |||||||||||||||||||
Below investment grade | 1,715 | 2.0 | 1,851 | 2.0 | |||||||||||||||||||
Total | $ | 82,223 | 100.0 | % | $ | 89,197 | 100.0 | % |
2022 | |||||||||||||||||||||||
NAIC Classes | Fair Value | % of Total | Amortized Cost | % of Total | |||||||||||||||||||
1 | $ | 43,251 | 55.3 | % | $ | 48,893 | 54.8 | % | |||||||||||||||
2 | 33,223 | 42.4 | 38,251 | 43.0 | |||||||||||||||||||
Investment grade | 76,474 | 97.7 | 87,144 | 97.8 | |||||||||||||||||||
3 | 1,484 | 1.9 | 1,648 | 1.8 | |||||||||||||||||||
4 | 234 | 0.3 | 264 | 0.3 | |||||||||||||||||||
5 | 75 | 0.1 | 84 | 0.1 | |||||||||||||||||||
6 | 2 | — | 3 | — | |||||||||||||||||||
Below investment grade | 1,795 | 2.3 | 1,999 | 2.2 | |||||||||||||||||||
Total | $ | 78,269 | 100.0 | % | $ | 89,143 | 100.0 | % |
2023 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 4,084 | 100.0 | % | 2023 | $ | 209 | 5.1 | % | |||||||||||||||||
2 | 2 | — | 2022 | 105 | 2.6 | |||||||||||||||||||||
3 | 1 | — | 2021 | 599 | 14.7 | |||||||||||||||||||||
4 | — | — | 2020 | 205 | 5.0 | |||||||||||||||||||||
5 | — | — | 2019 and prior | 2,969 | 72.6 | |||||||||||||||||||||
6 | — | — | $ | 4,087 | 100.0 | % | ||||||||||||||||||||
$ | 4,087 | 100.0 | % |
2022 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 5,093 | 100.0 | % | 2022 | $ | 11 | 0.2 | % | |||||||||||||||||
2 | 1 | — | 2021 | 557 | 10.9 | |||||||||||||||||||||
3 | 2 | — | 2020 | 208 | 4.1 | |||||||||||||||||||||
4 | — | — | 2019 | 955 | 18.7 | |||||||||||||||||||||
5 | — | — | 2018 and prior | 3,365 | 66.1 | |||||||||||||||||||||
6 | — | — | $ | 5,096 | 100.0 | % | ||||||||||||||||||||
$ | 5,096 | 100.0 | % |
2023 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 8,491 | 79.9 | % | 2023 | $ | 2,812 | 26.4 | % | |||||||||||||||||
2 | 1,836 | 17.3 | 2022 | 2,271 | 21.4 | |||||||||||||||||||||
3 | 145 | 1.4 | 2021 | 3,219 | 30.3 | |||||||||||||||||||||
4 | 94 | 0.9 | 2020 | 613 | 5.8 | |||||||||||||||||||||
5 | 30 | 0.3 | 2019 and prior | 1,707 | 16.1 | |||||||||||||||||||||
6 | 26 | 0.2 | $ | 10,622 | 100.0 | % | ||||||||||||||||||||
$ | 10,622 | 100.0 | % |
2022 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 6,556 | 74.0 | % | 2022 | $ | 2,782 | 31.4 | % | |||||||||||||||||
2 | 2,028 | 22.9 | 2021 | 3,476 | 39.2 | |||||||||||||||||||||
3 | 146 | 1.6 | 2020 | 593 | 6.7 | |||||||||||||||||||||
4 | 50 | 0.6 | 2019 | 519 | 5.9 | |||||||||||||||||||||
5 | 79 | 0.9 | 2018 and prior | 1,489 | 16.8 | |||||||||||||||||||||
6 | — | — | $ | 8,859 | 100.0 | % | ||||||||||||||||||||
$ | 8,859 | 100.0 | % |
2023 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 141 | 84.4 | % | 2023 | $ | — | — | % | |||||||||||||||||
2 | 6 | 3.6 | 2022 | — | — | |||||||||||||||||||||
3 | 1 | 0.6 | 2021 | — | — | |||||||||||||||||||||
4 | 8 | 4.8 | 2020 | — | — | |||||||||||||||||||||
5 | 9 | 5.4 | 2019 and prior | 167 | 100.0 | |||||||||||||||||||||
6 | 2 | 1.2 | $ | 167 | 100.0 | % | ||||||||||||||||||||
$ | 167 | 100.0 | % |
2022 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 170 | 87.6 | % | 2022 | $ | — | — | % | |||||||||||||||||
2 | 5 | 2.6 | 2021 | — | — | |||||||||||||||||||||
3 | 4 | 2.1 | 2020 | — | — | |||||||||||||||||||||
4 | 9 | 4.6 | 2019 | — | — | |||||||||||||||||||||
5 | 4 | 2.1 | 2018 and prior | 194 | 100.0 | |||||||||||||||||||||
6 | 2 | 1.0 | $ | 194 | 100.0 | % | ||||||||||||||||||||
$ | 194 | 100.0 | % |
2023 | |||||||||||||||||||||||
Investment Grade | % of Total | Below Investment Grade | % of Total | ||||||||||||||||||||
Twelve months or less below carrying value | $ | 154 | 1.9 | % | $ | 9 | 0.1 | % | |||||||||||||||
More than twelve months below carrying value | 7,611 | 96.1 | 154 | 1.9 | |||||||||||||||||||
Total | $ | 7,765 | 98.0 | % | $ | 163 | 2.0 | % |
2022 | |||||||||||||||||||||||
Investment Grade | % of Total | Below Investment Grade | % of Total | ||||||||||||||||||||
Twelve months or less below carrying value | $ | 8,543 | 75.6 | % | $ | 102 | 0.9 | % | |||||||||||||||
More than twelve months below carrying value | 2,548 | 22.5 | 114 | 1.0 | |||||||||||||||||||
Total | $ | 11,091 | 98.1 | % | $ | 216 | 1.9 | % |
2023 | 2022 | ||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||
Partnerships | $ | 2 | 2 | $ | — | 1 | |||||||||||||||||
Commercial mortgage loans | 46 | 4 | 48 | 1 | |||||||||||||||||||
Corporate securities | 73 | 46 | 84 | 58 | |||||||||||||||||||
Total | $ | 121 | 52 | $ | 132 | 60 |
2023 | 2022 | ||||||||||||||||||||||
Gross Carry Value | % of Total | Gross Carry Value | % of Total | ||||||||||||||||||||
Commercial mortgage loans by region | |||||||||||||||||||||||
East North Central | $ | 1,408 | 8.6 | % | $ | 1,429 | 9.0 | % | |||||||||||||||
East South Central | 561 | 3.4 | 448 | 2.8 | |||||||||||||||||||
Middle Atlantic | 1,384 | 8.5 | 1,303 | 8.2 | |||||||||||||||||||
Mountain | 1,849 | 11.4 | 1,645 | 10.4 | |||||||||||||||||||
New England | 603 | 3.7 | 576 | 3.6 | |||||||||||||||||||
Pacific | 4,397 | 27.0 | 4,439 | 28.0 | |||||||||||||||||||
South Atlantic | 3,518 | 21.6 | 3,574 | 22.5 | |||||||||||||||||||
West North Central | 1,045 | 6.4 | 984 | 6.2 | |||||||||||||||||||
West South Central | 1,516 | 9.3 | 1,457 | 9.2 | |||||||||||||||||||
Total commercial mortgage loans | $ | 16,281 | 100.0 | % | $ | 15,855 | 100.0 | % |
2023 | 2022 | ||||||||||||||||||||||
Gross Carry Value | % of Total | Gross Carry Value | % of Total | ||||||||||||||||||||
Residential mortgage loans by region | |||||||||||||||||||||||
East North Central | $ | 133 | 7.2 | % | $ | 139 | 7.4 | % | |||||||||||||||
East South Central | 35 | 1.9 | 30 | 1.6 | |||||||||||||||||||
Middle Atlantic | 424 | 23.1 | 441 | 23.5 | |||||||||||||||||||
Mountain | 168 | 9.2 | 181 | 9.7 | |||||||||||||||||||
New England | 106 | 5.8 | 115 | 6.1 | |||||||||||||||||||
Pacific | 584 | 31.8 | 587 | 31.3 | |||||||||||||||||||
South Atlantic | 266 | 14.5 | 269 | 14.4 | |||||||||||||||||||
West North Central | 11 | 0.6 | 12 | 0.6 | |||||||||||||||||||
West South Central | 107 | 5.8 | 100 | 5.3 | |||||||||||||||||||
Total residential mortgage loans | $ | 1,834 | 100.0 | % | $ | 1,873 | 100.0 | % |
2023 | 2022 | ||||||||||||||||||||||
Gross Carry Value | % of Total | Gross Carry Value | % of Total | ||||||||||||||||||||
Mortgage loans by property type | |||||||||||||||||||||||
Industrial | $ | 3,169 | 19.5 | % | $ | 3,018 | 19.0 | % | |||||||||||||||
Retail | 2,325 | 14.3 | 2,480 | 15.6 | |||||||||||||||||||
Office | 4,587 | 28.2 | 4,748 | 29.9 | |||||||||||||||||||
Apartments | 6,200 | 38.0 | 5,609 | 35.5 | |||||||||||||||||||
Total | $ | 16,281 | 100.0 | % | $ | 15,855 | 100.0 | % |
2023 | 2022 | 2021 | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 4,311 | 5,205 | (4,241) | ||||||||||||||||
Net cash (used in) provided by investing activities | (2,644) | 24 | 5,538 | |||||||||||||||||
Net cash (used in) provided by financing and miscellaneous activities | (468) | (6,212) | 1,008 | |||||||||||||||||
Net change in cash, cash equivalents, and short-term investments | $ | 1,199 | (983) | 2,305 |
Admitted Assets | 2023 | 2022 | ||||||||||||
Cash and invested assets: | ||||||||||||||
Bonds | $ | 89,197 | 89,143 | |||||||||||
Stocks | 323 | 251 | ||||||||||||
Investment in subsidiaries | 1,442 | 1,442 | ||||||||||||
Mortgage loans on real estate | 18,115 | 17,728 | ||||||||||||
Real estate | 92 | 82 | ||||||||||||
Cash, cash equivalents and short-term investments | 3,431 | 2,232 | ||||||||||||
Policy loans | 509 | 309 | ||||||||||||
Derivative assets | 3,278 | 973 | ||||||||||||
Other invested assets | 4,754 | 3,504 | ||||||||||||
Total cash and invested assets | 121,141 | 115,664 | ||||||||||||
Investment income due and accrued | 1,471 | 1,273 | ||||||||||||
Current federal and foreign income tax recoverable | 583 | 270 | ||||||||||||
Deferred tax asset, net | 564 | 379 | ||||||||||||
Other assets | 1,326 | 1,035 | ||||||||||||
Admitted assets, exclusive of separate account assets | 125,085 | 118,621 | ||||||||||||
Separate account assets | 52,781 | 43,502 | ||||||||||||
Total admitted assets | $ | 177,866 | 162,123 | |||||||||||
See accompanying notes to statutory financial statements. |
Liabilities and Capital and Surplus | 2023 | 2022 | ||||||||||||
Policyholder liabilities: | ||||||||||||||
Life policies and annuity contracts | $ | 91,114 | 98,386 | |||||||||||
Accident and health policies | 2,666 | 2,440 | ||||||||||||
Deposit-type contracts | 3,842 | 4,233 | ||||||||||||
Life policy and contract claims | 24 | 10 | ||||||||||||
Accident and health policy and contract claims | 24 | 22 | ||||||||||||
Funds held under reinsurance treaties | 10,034 | 139 | ||||||||||||
Other policyholder funds | 188 | 138 | ||||||||||||
Total policyholder liabilities | 107,892 | 105,368 | ||||||||||||
Interest maintenance reserve | 93 | 172 | ||||||||||||
General expenses due and accrued | 174 | 196 | ||||||||||||
Due from separate accounts | (1,325) | (751) | ||||||||||||
Current income taxes payable | 66 | 102 | ||||||||||||
Borrowed money | 2,515 | 2,010 | ||||||||||||
Asset valuation reserve | 1,442 | 1,266 | ||||||||||||
Derivative liabilities | 2,835 | 747 | ||||||||||||
Other liabilities | 4,359 | 2,996 | ||||||||||||
Liabilities, exclusive of separate account liabilities | 118,051 | 112,106 | ||||||||||||
Separate account liabilities | 52,781 | 43,502 | ||||||||||||
Total liabilities | 170,832 | 155,608 | ||||||||||||
Capital and surplus: | ||||||||||||||
Class A, Series A preferred stock, $1 par value. Authorized, issued, and outstanding, 8,909,195 shares; liquidation preference of $0 and $10 at December 31, 2023 and 2022, respectively | 9 | 9 | ||||||||||||
Class A, Series B preferred stock, $1 par value. Authorized, 10,000,000 shares; issued and outstanding, 9,994,289 shares; liquidation preference of $0 and $12 at December 31, 2023 and 2022, respectively | 10 | 10 | ||||||||||||
Common stock, $1 par value. Authorized, 40,000,000 shares; issued and outstanding, 20,000,001 shares at December 31, 2023 and 2022, respectively | 20 | 20 | ||||||||||||
Additional paid-in capital | 3,676 | 3,676 | ||||||||||||
Special surplus funds | (13) | (301) | ||||||||||||
Unassigned surplus | 3,332 | 3,101 | ||||||||||||
Total capital and surplus | 7,034 | 6,515 | ||||||||||||
Total liabilities and capital and surplus | $ | 177,866 | 162,123 | |||||||||||
See accompanying notes to statutory financial statements. |
2023 | 2022 | 2021 | ||||||||||||||||||
Income: | ||||||||||||||||||||
Premiums and annuity considerations | $ | 17,503 | 14,288 | 14,125 | ||||||||||||||||
Consideration for supplementary contracts | 130 | 139 | 166 | |||||||||||||||||
Net investment income | 4,822 | 4,544 | 4,866 | |||||||||||||||||
Commissions and expense allowances on reinsurance ceded | 736 | 649 | 1,093 | |||||||||||||||||
Reserve adjustments related to reinsurance ceded | (2,271) | (1,194) | (454) | |||||||||||||||||
Fees from separate accounts | 436 | 488 | 574 | |||||||||||||||||
Other | 248 | (503) | (32) | |||||||||||||||||
Total income | 21,604 | 18,411 | 20,338 | |||||||||||||||||
Benefits and other expenses: | ||||||||||||||||||||
Policyholder benefits | 1,860 | 1,846 | 2,076 | |||||||||||||||||
Surrenders | 10,584 | 6,653 | 8,800 | |||||||||||||||||
Change in aggregate reserves and deposit funds | 3,482 | 3,113 | 4,316 | |||||||||||||||||
Commissions and other agent compensation | 1,820 | 1,539 | 1,480 | |||||||||||||||||
General and administrative expenses | 862 | 697 | 715 | |||||||||||||||||
Net transfers to separate accounts | 834 | 1,732 | 2,424 | |||||||||||||||||
Total benefits and other expenses | 19,442 | 15,580 | 19,811 | |||||||||||||||||
Income from operations before federal income taxes and net realized capital gain | 2,162 | 2,831 | 527 | |||||||||||||||||
Income tax expense (benefit) | 574 | (2) | 1,091 | |||||||||||||||||
Net income (loss) from operations before net realized capital gain | 1,588 | 2,833 | (564) | |||||||||||||||||
Net realized capital (loss) gain, net of taxes and interest maintenance reserve | (797) | (1,986) | 1,856 | |||||||||||||||||
Net income | $ | 791 | 847 | 1,292 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
2023 | 2022 | 2021 | ||||||||||||||||||
Capital and surplus at beginning of year | $ | 6,515 | 10,705 | 7,661 | ||||||||||||||||
Change due to correction of accounting error (Note 3) | 34 | — | 40 | |||||||||||||||||
Adjusted balance at beginning of year | 6,549 | 10,705 | 7,701 | |||||||||||||||||
Net income | 791 | 847 | 1,292 | |||||||||||||||||
Change in unrealized capital gain (loss) | 522 | (516) | (142) | |||||||||||||||||
Change in net deferred income tax | 235 | 54 | 215 | |||||||||||||||||
Change in asset valuation reserve | (176) | (118) | (165) | |||||||||||||||||
Dividends paid to parent | (500) | (4,100) | (900) | |||||||||||||||||
Change in unamortized gain on reinsurance transactions | (305) | (254) | 2,737 | |||||||||||||||||
Other changes in capital and surplus | (82) | (103) | (33) | |||||||||||||||||
Capital and surplus at end of year | $ | 7,034 | 6,515 | 10,705 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
2023 | 2022 | 2021 | ||||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Premiums and annuity considerations, net | $ | 15,681 | 14,427 | 14,291 | ||||||||||||||||
Net investment income | 4,663 | 4,352 | 5,069 | |||||||||||||||||
Commissions and expense allowances on reinsurance ceded | 431 | 333 | 385 | |||||||||||||||||
Fees from separate accounts | 436 | 488 | 574 | |||||||||||||||||
Other | 9 | 148 | 256 | |||||||||||||||||
Cash provided by operating activities | 21,220 | 19,748 | 20,575 | |||||||||||||||||
Benefits and expenses paid: | ||||||||||||||||||||
Benefit and loss-related payments | 11,632 | 9,619 | 19,238 | |||||||||||||||||
Net transfers to separate accounts | 1,408 | 1,849 | 2,766 | |||||||||||||||||
Commissions, expenses paid, and aggregate write-ins for deductions | 3,036 | 2,459 | 2,119 | |||||||||||||||||
Income tax paid, net | 833 | 616 | 709 | |||||||||||||||||
Other | — | — | (16) | |||||||||||||||||
Cash used in operating activities | 16,909 | 14,543 | 24,816 | |||||||||||||||||
Net cash provided by (used in) operating activities | 4,311 | 5,205 | (4,241) | |||||||||||||||||
Cash flow from investing activities: | ||||||||||||||||||||
Proceeds from investments sold, matured or repaid: | ||||||||||||||||||||
Bonds | 14,591 | 19,619 | 30,622 | |||||||||||||||||
Stocks | 144 | 98 | 282 | |||||||||||||||||
Mortgage loans | 781 | 1,403 | 1,806 | |||||||||||||||||
Real estate | 1 | 5 | 3 | |||||||||||||||||
Other invested assets | 157 | 154 | 81 | |||||||||||||||||
Derivatives | — | — | 1,213 | |||||||||||||||||
Miscellaneous proceeds | 264 | 893 | 35 | |||||||||||||||||
Cash provided by investing activities | 15,938 | 22,172 | 34,042 | |||||||||||||||||
Cost of investments acquired: | ||||||||||||||||||||
Bonds | 14,777 | 15,529 | 24,350 | |||||||||||||||||
Stocks | 219 | 107 | 292 | |||||||||||||||||
Mortgage loans | 1,223 | 2,030 | 3,347 | |||||||||||||||||
Real estate | 12 | 11 | 17 | |||||||||||||||||
Other invested assets | 956 | 549 | 408 | |||||||||||||||||
Derivatives | 410 | 3,881 | — | |||||||||||||||||
Miscellaneous applications | 785 | — | 78 | |||||||||||||||||
Cash used in investing activities | 18,382 | 22,107 | 28,492 | |||||||||||||||||
Net increase in policy loans and premium notes | 200 | 41 | 12 | |||||||||||||||||
Net cash (used in) provided by investing activities | (2,644) | 24 | 5,538 | |||||||||||||||||
Cash flow from financing and miscellaneous activities: | ||||||||||||||||||||
Change in borrowed money | 500 | — | 500 | |||||||||||||||||
Payments on deposit-type contracts and other insurance liabilities, net of deposits | (1,135) | (1,203) | (1,264) | |||||||||||||||||
Dividends paid to parent | (500) | (4,100) | (900) | |||||||||||||||||
Other cash provided (used) | 667 | (909) | 2,672 | |||||||||||||||||
Net cash (used in) provided by financing and miscellaneous activities | (468) | (6,212) | 1,008 | |||||||||||||||||
Net change in cash, cash equivalents, and short-term investments | 1,199 | (983) | 2,305 | |||||||||||||||||
Cash, cash equivalents, and short-term investments: | ||||||||||||||||||||
Beginning of year | 2,232 | 3,215 | 910 | |||||||||||||||||
End of year | $ | 3,431 | 2,232 | 3,215 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
2023 | 2022 | |||||||
Hedge adjustment balance - beginning of year | $ | 401 | 455 | |||||
Amount amortized into earnings during the year | (49) | (54) | ||||||
Hedge adjustment balance - end of year | $ | 352 | 401 |
2023 | 2022 | |||||||
Net deferred liability - beginning of year | $ | 300 | $ | 1,437 | ||||
Amortization | (219) | (269) | ||||||
Additional amounts deferred | (68) | (868) | ||||||
Net deferred liability - end of year | $ | 13 | $ | 300 |
Amortization year | Deferred assets | Deferred liabilities | |||||||||||||||
2024 | $ | (310) | $ | 528 | |||||||||||||
2025 | (310) | 528 | |||||||||||||||
2026 | (217) | 282 | |||||||||||||||
2027 | (124) | 37 | |||||||||||||||
2028 | (124) | 37 | |||||||||||||||
2029 | (123) | 36 | |||||||||||||||
2030 | (123) | 36 | |||||||||||||||
2031 | (123) | 36 | |||||||||||||||
2032 | (77) | 27 | |||||||||||||||
2033 | (22) | $ | 19 | ||||||||||||||
Total | $ | (1,553) | $ | 1,566 |
2023 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
U.S. government | $ | 5,218 | 37 | 474 | 4,781 | |||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government
|
2 | — | — | 2 | ||||||||||||||||||||||
States and political subdivisions | 6,028 | 92 | 410 | 5,710 | ||||||||||||||||||||||
Foreign governments | 2,455 | 30 | 298 | 2,187 | ||||||||||||||||||||||
Corporate securities | 71,359 | 740 | 6,260 | 65,839 | ||||||||||||||||||||||
Mortgage-backed securities | 5,191 | 49 | 486 | 4,754 | ||||||||||||||||||||||
Collateralized debt obligations | 12 | 6 | — | 18 | ||||||||||||||||||||||
Total bonds | 90,265 | 954 | 7,928 | 83,291 | ||||||||||||||||||||||
Common stocks | 309 | 22 | 8 | 323 | ||||||||||||||||||||||
Total | $ | 90,574 | 976 | 7,936 | 83,614 |
2022 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
U.S. government | $ | 5,492 | 2 | 535 | 4,959 | |||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government
|
2 | — | — | 2 | ||||||||||||||||||||||
States and political subdivisions | 6,768 | 76 | 600 | 6,244 | ||||||||||||||||||||||
Foreign governments | 1,949 | 2 | 336 | 1,615 | ||||||||||||||||||||||
Corporate securities | 69,765 | 315 | 9,191 | 60,889 | ||||||||||||||||||||||
Mortgage-backed securities | 6,287 | 29 | 645 | 5,671 | ||||||||||||||||||||||
Collateralized debt obligations | 12 | 8 | — | 20 | ||||||||||||||||||||||
Total bonds | 90,275 | 432 | 11,307 | 79,400 | ||||||||||||||||||||||
Common stocks | 260 | 8 | 17 | 251 | ||||||||||||||||||||||
Total | $ | 90,535 | 440 | 11,324 | 79,651 |
Carrying value |
Fair value | ||||||||||
Due in 1 year or less | $ | 2,099 | $ | 2,088 | |||||||
Due after 1 year through 5 years | 10,139 | 9,866 | |||||||||
Due after 5 years through 10 years | 16,704 | 15,562 | |||||||||
Due after 10 years through 20 years | 26,912 | 25,675 | |||||||||
Due after 20 years | 27,668 | 23,932 | |||||||||
No maturity date | 1,540 | 1,395 | |||||||||
Mortgage-backed and other structured securities
|
5,203 | 4,773 | |||||||||
Total bonds and other assets receiving bond treatment | $ | 90,265 | $ | 83,291 |
2023 | 2022 | 2021 | ||||||||||||||||||
Proceeds from sales | $ | 14,591 | 19,619 | 30,577 | ||||||||||||||||
Gross gains | 111 | 251 | 1,313 | |||||||||||||||||
Gross losses | 487 | 475 | 101 |
2023 | 2022 | 2021 | ||||||||||||||||||
Proceeds from sales | $ | 144 | 98 | 241 | ||||||||||||||||
Gross gains | 5 | 4 | 11 | |||||||||||||||||
Gross losses | 2 | 1 | — |
2023 | 2022 | 2021 | ||||||||||||||||||
Proceeds from sales | $ | — | — | 40 | ||||||||||||||||
Gross gains | — | — | 1 | |||||||||||||||||
Gross losses | — | — | — |
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 | $ | 77 | 1 | 3,535 | 473 | 3,612 | 474 | |||||||||||||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government | — | — | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||
Foreign government | 165 | 5 | 1,453 | 293 | 1,618 | 298 | ||||||||||||||||||||||||||||||||
States and political subdivisions | 534 | 10 | 3,641 | 400 | 4,175 | 410 | ||||||||||||||||||||||||||||||||
Corporate securities | 4,334 | 144 | 43,962 | 6,116 | 48,296 | 6,260 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 177 | 3 | 4,067 | 483 | 4,244 | 486 | ||||||||||||||||||||||||||||||||
Total bonds | 5,287 | 163 | 56,660 | 7,765 | 61,947 | 7,928 | ||||||||||||||||||||||||||||||||
Common stock | 1 | — | 39 | 8 | 40 | 8 | ||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 5,288 | 163 | 56,699 | 7,773 | 61,987 | 7,936 |
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 | $ | 3,023 | 319 | 744 | 216 | 3,767 | 535 | |||||||||||||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government | 2 | — | — | — | 2 | — | ||||||||||||||||||||||||||||||||
Foreign government | 1,105 | 202 | 423 | 134 | 1,528 | 336 | ||||||||||||||||||||||||||||||||
States and political subdivisions | 4,770 | 574 | 49 | 26 | 4,819 | 600 | ||||||||||||||||||||||||||||||||
Corporate securities | 46,456 | 7,027 | 7,507 | 2,164 | 53,963 | 9,191 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 4,912 | 524 | 512 | 121 | 5,424 | 645 | ||||||||||||||||||||||||||||||||
Total bonds | 60,268 | 8,646 | 9,235 | 2,661 | 69,503 | 11,307 | ||||||||||||||||||||||||||||||||
Common stock | 85 | 11 | 22 | 6 | 107 | 17 | ||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 60,353 | 8,657 | 9,257 | 2,667 | 69,610 | 11,324 |
2023 | 2022 | 2021 | |||||||||||||||
Bonds | $ | (449) | (308) | 1,199 | |||||||||||||
Stocks | 3 | 3 | 11 | ||||||||||||||
Mortgage Loans | (46) | (46) | (8) | ||||||||||||||
Real estate | — | 1 | — | ||||||||||||||
Derivatives | (819) | (2,118) | 1,883 | ||||||||||||||
Other | 63 | 184 | (39) | ||||||||||||||
Total realized capital (losses) gains | (1,248) | (2,285) | 3,046 | ||||||||||||||
Income tax benefit (expense) on net realized gains (losses) | 102 | 43 | (249) | ||||||||||||||
Total realized capital (losses) gains, net of taxes | (1,146) | (2,242) | 2,797 | ||||||||||||||
Net (losses) gains transferred to IMR, net of taxes | (349) | (256) | 941 | ||||||||||||||
Net realized (losses) gains, net of taxes and IMR | $ | (797) | (1,986) | 1,856 |
2023 | 2022 | 2021 | |||||||||||||||
Interest: | |||||||||||||||||
Bonds | $ | 4,078 | 3,783 | 4,233 | |||||||||||||
Mortgage loans on real estate | 743 | 703 | 682 | ||||||||||||||
Policy loans | 18 | 13 | 12 | ||||||||||||||
Cash, cash equivalents, and short-term investments | 162 | 23 | — | ||||||||||||||
Dividends: | |||||||||||||||||
Stocks | 13 | 10 | 13 | ||||||||||||||
Investment in subsidiaries | 101 | 77 | 51 | ||||||||||||||
Rental income on real estate | 21 | 21 | 20 | ||||||||||||||
Derivatives | (65) | 19 | 37 | ||||||||||||||
Other | 21 | 10 | (92) | ||||||||||||||
Gross investment income | 5,092 | 4,659 | 4,956 | ||||||||||||||
Investment expenses | (304) | (155) | (137) | ||||||||||||||
Net investment income before amortization of IMR | 4,788 | 4,504 | 4,819 | ||||||||||||||
Amortization of IMR | 34 | 40 | 47 | ||||||||||||||
Net investment income | $ | 4,822 | 4,544 | 4,866 |
2023 | 2022 | ||||||||||
Gross | $ | 1,471 | 1,273 | ||||||||
Nonadmitted | — | — | |||||||||
Admitted | $ | 1,471 | 1,273 |
2023 | 2022 | ||||||||||
Cumulative amounts of PIK interest included in the current principal balance | $ | 10 | — |
2023 | 2022 | ||||||||||||||||
Concentration Amount | Concentration % | Concentration Amount | Concentration % | ||||||||||||||
California | $ | 3,516 | 21.6 | % | $ | 3,545 | 22.4 | % |
2023 | 2022 | ||||||||||||||||
Concentration Amount | Concentration % | Concentration Amount | Concentration % | ||||||||||||||
California | $ | 541 | 29.5 | % | $ | 546 | 29.2 | % | |||||||||
New York | 231 | 12.6 | % | 238 | 12.7 | % |
2023 | 2022 | ||||||||||||||||
Residential | Commercial | Residential | Commercial | ||||||||||||||
Current | $ | 1,786 | 16,225 | 1,799 | 15,855 | ||||||||||||
30-59 Days Past Due | — | — | 27 | — | |||||||||||||
60-89 Days Past Due | — | — | 8 | — | |||||||||||||
90-179 Days Past Due | 18 | — | 16 | — | |||||||||||||
180+ Days Past Due | 30 | 56 | 23 | — | |||||||||||||
Total | $ | 1,834 | 16,281 | 1,873 | 15,855 |
2023 | 2022 | ||||||||||
Balance at beginning of period | $ | — | — | ||||||||
Additions charged to operations | 16 | — | |||||||||
Direct write-downs charged against the allowances | — | — | |||||||||
Recoveries of amounts previously charged off | — | — | |||||||||
Balance at end of period | $ | 16 | — |
Debt Service Coverage Ratios | |||||||||||||||||||||||||||||||||||
2023 | Greater than 1.4x | 1.2x – 1.4x | 1.0x – 1.2x | Less than 1.0x | Total | Percent of Total | |||||||||||||||||||||||||||||
Loan-to-value ratios: | |||||||||||||||||||||||||||||||||||
Less than 50% | $ | 6,071 | 274 | 278 | 171 | 6,794 | 41.7 | % | |||||||||||||||||||||||||||
50% – 60% | 5,211 | 762 | 370 | 198 | 6,541 | 40.2 | % | ||||||||||||||||||||||||||||
60% – 70% | 1,953 | 325 | 114 | 148 | 2,540 | 15.6 | % | ||||||||||||||||||||||||||||
70% – 80% | 109 | — | 124 | — | 233 | 1.4 | % | ||||||||||||||||||||||||||||
80% – 90% | — | — | 50 | — | 50 | 0.3 | % | ||||||||||||||||||||||||||||
90% – 100% | — | — | 63 | — | 63 | 0.4 | % | ||||||||||||||||||||||||||||
Greater than 100% | — | — | 60 | — | 60 | 0.4 | % | ||||||||||||||||||||||||||||
Total | $ | 13,344 | 1,361 | 1,059 | 517 | 16,281 | 100.0 | % |
Debt Service Coverage Ratios | |||||||||||||||||||||||||||||||||||
2022 | Greater than 1.4x | 1.2x – 1.4x | 1.0x – 1.2x | Less than 1.0x | Total | Percent of Total | |||||||||||||||||||||||||||||
Loan-to-value ratios: | |||||||||||||||||||||||||||||||||||
Less than 50% | $ | 4,784 | 82 | 376 | 676 | 5,918 | 37.3 | % | |||||||||||||||||||||||||||
50% – 60% | 4,298 | 896 | 202 | 950 | 6,346 | 40.0 | % | ||||||||||||||||||||||||||||
60% – 70% | 2,201 | 571 | 223 | 464 | 3,459 | 21.8 | % | ||||||||||||||||||||||||||||
70% – 80% | 90 | 28 | — | 14 | 132 | 0.9 | % | ||||||||||||||||||||||||||||
80% – 90% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
90% – 100% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
Greater than 100% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
Total | $ | 11,373 | 1,577 | 801 | 2,104 | 15,855 | 100.0 | % |
2023 | 2022 | ||||||||||||||||||||||
Total | Percent of Total | Total | Percent of Total | ||||||||||||||||||||
Loan-to-value ratios: | |||||||||||||||||||||||
Below 70% | $ | 659 | 35.9 | % | $ | 604 | 32.2 | % | |||||||||||||||
70% to 79% | 959 | 52.3 | % | 1,043 | 55.7 | % | |||||||||||||||||
80% to 89% | 197 | 10.7 | % | 208 | 11.1 | % | |||||||||||||||||
90% to 95% | 12 | 0.7 | % | 16 | 0.9 | % | |||||||||||||||||
Above 95% | 7 | 0.4 | % | 2 | 0.1 | % | |||||||||||||||||
Total | $ | 1,834 | 100.0 | % | $ | 1,873 | 100.0 | % |
2023 | 2022 | ||||||||||
The total recorded investment in restructured loans, as of year-end | $ | 38 | — | ||||||||
The realized capital losses related to these loans | 19 | — | |||||||||
Total contractual commitments to extend credit to debtors owing receivables whose terms have been modified in troubled debt restructuring | — | — |
OTTI Recognized in Loss | |||||||||||||||||||||||
Year ended | Amortized Cost Basis Before OTTI | Interest | Non-Interest | Fair Value | |||||||||||||||||||
OTTI Recognized: | |||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Intent to sell | $ | 81 | 20 | (1) | 62 | ||||||||||||||||||
Annual aggregate total | $ | 81 | 20 | (1) | 62 | ||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Intent to sell | $ | 136 | 23 | 3 | 110 | ||||||||||||||||||
Annual aggregate total | $ | 136 | 23 | 3 | 110 | ||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Intent to sell | $ | 41 | 3 | — | 38 | ||||||||||||||||||
Annual aggregate total | $ | 41 | 3 | — | 38 |
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Gross Fair Value | Gross Fair Value | |||||||||||||||||||||||||||||||||||||
Notional (1)
|
Assets | Liabilities |
Notional (1)
|
Assets | Liabilities | |||||||||||||||||||||||||||||||||
Cash flow hedging instruments | ||||||||||||||||||||||||||||||||||||||
Foreign currency swaps | $ | 2,048 | 143 | (9) | 1,959 | 243 | (1) | |||||||||||||||||||||||||||||||
Total cash flow hedging instruments | $ | 143 | (9) | 243 | (1) | |||||||||||||||||||||||||||||||||
Fair value hedging instruments | ||||||||||||||||||||||||||||||||||||||
IRS | $ | 76,595 | 19 | (206) | 69,692 | 21 | (211) | |||||||||||||||||||||||||||||||
Total fair value hedging instruments | $ | 19 | (206) | $ | 21 | (211) | ||||||||||||||||||||||||||||||||
Nonqualifying hedging instruments | ||||||||||||||||||||||||||||||||||||||
OTC options | $ | 51,904 | 2,895 | (2,383) | 43,355 | 670 | (494) | |||||||||||||||||||||||||||||||
ETO | 16,191 | 76 | (182) | 1,185 | 25 | (5) | ||||||||||||||||||||||||||||||||
TBA securities | 457 | 1 | (1) | 1,071 | 1 | (8) | ||||||||||||||||||||||||||||||||
IRS | 425 | 6 | (12) | 3,762 | 7 | (14) | ||||||||||||||||||||||||||||||||
Futures | 18,988 | — | — | 8,405 | — | — | ||||||||||||||||||||||||||||||||
TRS | 4,953 | 138 | (42) | 3,459 | 6 | (14) | ||||||||||||||||||||||||||||||||
Total nonqualifying hedging instruments | 3,116 | (2,620) | 709 | (535) | ||||||||||||||||||||||||||||||||||
Total derivative instruments | $ | 3,278 | (2,835) | 973 | (747) | |||||||||||||||||||||||||||||||||
(1) Notional amounts are presented on an absolute basis.
|
||||||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash | ||||||||||||||
Open | 2,600 | 1,892 | ||||||||||||
30 days or less | — | — | ||||||||||||
31 to 60 days | — | — | ||||||||||||
61 to 90 days | — | — | ||||||||||||
Greater than 90 days | — | — | ||||||||||||
Subtotal | 2,600 | 1,892 | ||||||||||||
Securities received | 74 | 263 | ||||||||||||
Total collateral received | $ | 2,674 | 2,155 |
2023 | 2022 | |||||||||||||||||||||||||
Amortized cost | Fair value | Amortized cost | Fair value | |||||||||||||||||||||||
Open | — | — | — | — | ||||||||||||||||||||||
30 days or less | 1,373 | 1,374 | 969 | 969 | ||||||||||||||||||||||
31 to 60 days | 439 | 439 | 338 | 338 | ||||||||||||||||||||||
61 to 90 days | 11 | 11 | 26 | 26 | ||||||||||||||||||||||
91 to 120 days | 195 | 195 | 117 | 117 | ||||||||||||||||||||||
121 to 180 days | 189 | 189 | 156 | 156 | ||||||||||||||||||||||
181 to 365 days | 393 | 393 | 286 | 287 | ||||||||||||||||||||||
Greater than 1 year | — | — | — | — | ||||||||||||||||||||||
Total collateral reinvested | $ | 2,600 | 2,601 | 1,892 | 1,893 |
2023 | 2022 | ||||||||||
Cash and cash equivalents | $ | 2,330 | 1,254 | ||||||||
Short-term investments | 270 | 638 | |||||||||
Total | $ | 2,600 | 1,892 |
As of year end | 2023 | 2022 | ||||||||||||||||||
1. Maturity
|
||||||||||||||||||||
a. Overnight
|
$ | 1,405 | 460 | |||||||||||||||||
b. 2 Days to 1 Week
|
— | — | ||||||||||||||||||
2. Collateral Pledged and Securities Acquired Under Repo
|
||||||||||||||||||||
a. Cash Collateral Pledged - Secured Borrowing
|
$ | 1,405 | 460 | |||||||||||||||||
b. Fair Value of Securities Acquired Under Repo - Secured Borrowing
|
1,405 | 460 |
Maximum Amount | 2023 | 2022 | ||||||||||||||||||
1. Maturity | ||||||||||||||||||||
a. Overnight | $ | 1,460 | 997 | |||||||||||||||||
b. 2 Days to 1 Week | 15 | 303 | ||||||||||||||||||
c. Greater than one week and less than one month | 100 | |||||||||||||||||||
2. Collateral Pledged and Securities Acquired Under Repo | ||||||||||||||||||||
a. Cash Collateral Pledged - Secured Borrowing | $ | 1,460 | 1,165 | |||||||||||||||||
b. Fair Value of Securities Acquired Under Repo - Secured Borrowing | 1,460 | 1,167 |
SCA Name | Gross Asset | Non-Admitted Asset | Net Admitted Assets | NAIC Filing Date | NAIC Filing Type | NAIC Filing Balance | Re-submission Required? | |||||||||||||||||||||||||||||||||||||
AZLPF | $ | 704 | — | 704 | 7/25/2023 | S1 | 721 | N | ||||||||||||||||||||||||||||||||||||
Total | $ | 704 | — | 704 | XXX | XXX | 721 | XXX |
2023 | 2022 | |||||||||||||
Carrying value | $ | 3,229 | 2,372 | |||||||||||
Fair value | 2,500 | 2,308 |
2023 | 2022 | |||||||||||||
Carrying value | $ | 4,642 | 2,774 | |||||||||||
Fair value | 4,087 | 2,928 |
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 | |||||||||||||||||||||||||||||||||||||||||||
Collateral held under security lending arrangements | $ | 2,674 | 760 | 3,434 | 3,334 | 100 | 3,434 | 1.5 | % | 1.5 | % | |||||||||||||||||||||||||||||||||||||||
FHLB capital stock | 123 | — | 123 | 90 | 33 | 123 | — | — | ||||||||||||||||||||||||||||||||||||||||||
On deposit with states | 4 | — | 4 | 4 | — | 4 | — | — | ||||||||||||||||||||||||||||||||||||||||||
On deposit with other regulatory bodies | 27 | — | 27 | 27 | — | 27 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Pledged as collateral to FHLB (including assets backing funding agreements) | 3,229 | — | 3,229 | 2,372 | 857 | 3,229 | 1.8 | 1.8 | ||||||||||||||||||||||||||||||||||||||||||
Derivative collateral | 2,640 | — | 2,640 | 1,553 | 1,087 | 2,640 | 1.5 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||
Reinsurance assets | 22,403 | — | 22,403 | 24,143 | (1,740) | 22,403 | 12.6 | 12.6 | ||||||||||||||||||||||||||||||||||||||||||
Total restricted assets | $ | 31,100 | 760 | 31,860 | 31,523 | 337 | 31,860 | 17.4 | % | 17.4 | % | |||||||||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||
Level 1 |
Level 2 (a)
|
Level 3 | Total | |||||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||||||||
Bonds | $ | 1 | 4 | — | 5 | |||||||||||||||||||||
Common stocks | 197 | — | 4 | 201 | ||||||||||||||||||||||
Derivative assets | 76 | 3,064 | 137 | 3,277 | ||||||||||||||||||||||
Separate account assets | 15,816 | 8,582 | — | 24,398 | ||||||||||||||||||||||
Other invested assets | — | — | 242 | 242 | ||||||||||||||||||||||
Total assets reported at fair value | $ | 16,090 | 11,650 | 383 | 28,123 | |||||||||||||||||||||
Liabilities at fair value: | ||||||||||||||||||||||||||
Derivative liabilities | $ | 182 | 2,611 | 42 | 2,835 | |||||||||||||||||||||
Separate account derivative liabilities | — | 5,249 | — | 5,249 | ||||||||||||||||||||||
Total liabilities reported at fair value | $ | 182 | 7,860 | 42 | 8,084 | |||||||||||||||||||||
(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.
|
2022 | ||||||||||||||||||||||||||
Level 1 |
Level 2 (a)
|
Level 3 | Total | |||||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||||||||
Bonds | $ | 1 | 3 | — | 4 | |||||||||||||||||||||
Common stocks | 155 | — | 5 | 160 | ||||||||||||||||||||||
Derivative assets | 25 | 1,065 | 6 | 1,096 | ||||||||||||||||||||||
Separate account assets | 15,872 | 3,062 | — | 18,934 | ||||||||||||||||||||||
Total assets reported at fair value | $ | 16,053 | 4,130 | 11 | 20,194 | |||||||||||||||||||||
Liabilities at fair value: | ||||||||||||||||||||||||||
Derivative liabilities | $ | 5 | 741 | 14 | 760 | |||||||||||||||||||||
Separate account derivative liabilities | — | 2,940 | — | 2,940 | ||||||||||||||||||||||
Total liabilities reported at fair value | $ | 5 | 3,681 | 14 | 3,700 | |||||||||||||||||||||
(a) The Company does not have any assets or liabilities measured at NAV that are included in Level 2 within this table.
|
January 1, 2023 | 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, 2023 | |||||||||||||||||
Common stocks | $ | 5 | — | — | — | (1) | — | 4 | |||||||||||||||
TRS assets | 6 | — | — | 316 | 131 | (316) | 137 | ||||||||||||||||
Other invested assets | — | 242 | — | — | — | — | 242 | ||||||||||||||||
Total Level 3 Assets | $ | 11 | 242 | — | 316 | 130 | (316) | 383 | |||||||||||||||
TRS liabilities | $ | (14) | — | — | (375) | (28) | 375 | (42) | |||||||||||||||
Total Level 3 Liabilities | $ | (14) | — | — | (375) | (28) | 375 | (42) |
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 | |||||||||||||||||
Preferred stocks | $ | — | — | — | — | — | — | — | |||||||||||||||
Common stocks | — | — | — | — | (2) | 7 | 5 | ||||||||||||||||
TRS assets | — | — | — | 419 | 6 | (419) | 6 | ||||||||||||||||
Total Level 3 Assets | $ | — | — | — | 419 | 4 | (412) | 11 | |||||||||||||||
TRS liabilities | $ | (15) | — | — | (871) | 1 | 871 | (14) | |||||||||||||||
Total Level 3 Liabilities | $ | (15) | — | — | (871) | 1 | 871 | (14) |
2023 | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Aggregate Fair Value | Admitted Assets/ Carrying Value |
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||
Bonds | $ | 82,223 | 89,197 | 5,412 | 52,057 | 24,754 | ||||||||||||||||||||||||||
Common stocks, unaffiliated | 323 | 323 | 197 | — | 126 | |||||||||||||||||||||||||||
Mortgage loans on real estate | 16,664 | 18,115 | — | — | 16,664 | |||||||||||||||||||||||||||
Cash equivalents | 3,176 | 3,176 | 1,485 | 1,405 | 286 | |||||||||||||||||||||||||||
Short-term investments | 612 | 613 | 595 | 5 | 12 | |||||||||||||||||||||||||||
Derivative assets | 3,278 | 3,278 | 77 | 3,064 | 137 | |||||||||||||||||||||||||||
Securities lending reinvested collateral assets | 2,601 | 2,600 | — | 2,601 | — | |||||||||||||||||||||||||||
Other invested assets | 1,886 | 1,905 | — | 131 | 1,755 | |||||||||||||||||||||||||||
COLI | 750 | 750 | — | 750 | — | |||||||||||||||||||||||||||
Separate account assets | 49,938 | 52,781 | 16,397 | 28,000 | 5,541 | |||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Deposit-type contracts | $ | 3,913 | 3,842 | — | — | 3,913 | ||||||||||||||||||||||||||
Other investment contracts | 82,589 | 80,474 | — | — | 82,589 | |||||||||||||||||||||||||||
Borrowed money | 2,569 | 2,515 | — | — | 2,569 | |||||||||||||||||||||||||||
Derivative liabilities | 2,835 | 2,835 | 182 | 2,611 | 42 | |||||||||||||||||||||||||||
Payable for securities lending | 2,600 | 2,600 | — | 2,600 | — | |||||||||||||||||||||||||||
Payable for securities | 117 | 117 | — | — | 117 | |||||||||||||||||||||||||||
Separate account liabilities | 49,938 | 52,781 | 16,397 | 28,000 | 5,541 | |||||||||||||||||||||||||||
(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.
|
2022 | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Aggregate Fair Value | Admitted Assets/ Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||
Bonds | $ | 78,268 | 89,143 | 4,708 | 55,058 | 18,502 | ||||||||||||||||||||||||||
Common stocks, unaffiliated | 251 | 251 | 156 | — | 95 | |||||||||||||||||||||||||||
Mortgage loans on real estate | 16,020 | 17,728 | — | — | 16,020 | |||||||||||||||||||||||||||
Cash equivalents | 1,489 | 1,488 | 1,029 | 460 | — | |||||||||||||||||||||||||||
Short-term investments | 783 | 783 | 778 | — | 5 | |||||||||||||||||||||||||||
Derivative assets | 1,096 | 973 | 25 | 1,065 | 6 | |||||||||||||||||||||||||||
Securities lending reinvested collateral assets | 1,892 | 1,892 | — | 1,892 | — | |||||||||||||||||||||||||||
Other invested assets | 1,408 | 1,439 | — | 94 | 1,314 | |||||||||||||||||||||||||||
COLI | 692 | 692 | — | 692 | — | |||||||||||||||||||||||||||
Separate account assets | 40,004 | 43,502 | 16,406 | 21,711 | 1,887 | |||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Deposit-type contracts | $ | 4,122 | 4,233 | — | — | 4,122 | ||||||||||||||||||||||||||
Other investment contracts | 96,854 | 88,919 | — | — | 96,854 | |||||||||||||||||||||||||||
Borrowed money | 1,999 | 2,010 | — | — | 1,999 | |||||||||||||||||||||||||||
Derivative liabilities | 760 | 747 | 5 | 741 | 14 | |||||||||||||||||||||||||||
Payable for securities lending | 1,892 | 1,892 | — | 1,892 | — | |||||||||||||||||||||||||||
Payable for securities | 207 | 207 | — | — | 207 | |||||||||||||||||||||||||||
Separate account liabilities | 40,004 | 43,502 | 16,406 | 21,711 | 1,887 | |||||||||||||||||||||||||||
(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.
|
2023 | 2022 | |||||||
Bonds | 45.0 | % | 47.0 | % | ||||
Stocks | 19.0 | % | 17.0 | % | ||||
Other Invested Assets | 36.0 | % | 36.0 | % |
2024 | $ | 8 | |||
2025 | — | ||||
2026 | — | ||||
2027 | — | ||||
2028 | — | ||||
Thereafter | — | ||||
Total | $ | 8 |
2023 | 2022 | ||||||||||
Amortization: | |||||||||||
Software amortization | 20 | 16 | |||||||||
Net EDP balance, by major classes of assets: | |||||||||||
Software | 67 | 63 | |||||||||
Net EDP balance | 67 | 63 | |||||||||
Nonadmitted | (67) | (63) | |||||||||
Net admitted EDP balance | $ | — | — |
December 31, 2023 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets
|
$ | 1,065 | 69 | 1,134 | |||||||||||||
Statutory valuation allowance adjustments
|
— | — | — | ||||||||||||||
Adjusted gross deferred tax assets
|
1,065 | 69 | 1,134 | ||||||||||||||
Deferred tax assets nonadmitted
|
(196) | — | (196) | ||||||||||||||
Subtotal net admitted deferred tax assets
|
869 | 69 | 938 | ||||||||||||||
Deferred tax liabilities
|
(371) | (3) | (374) | ||||||||||||||
Net admitted deferred tax assets (liabilities)
|
$ | 498 | 66 | 564 |
December 31, 2022 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets
|
$ | 898 | 58 | 956 | |||||||||||||
Statutory valuation allowance adjustments
|
— | — | — | ||||||||||||||
Adjusted gross deferred tax assets
|
898 | 58 | 956 | ||||||||||||||
Deferred tax assets nonadmitted
|
(108) | — | (108) | ||||||||||||||
Subtotal net admitted deferred tax assets
|
790 | 58 | 848 | ||||||||||||||
Deferred tax liabilities
|
(448) | (21) | (469) | ||||||||||||||
Net admitted deferred tax assets (liabilities)
|
$ | 342 | 37 | 379 |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets
|
$ | 166 | 11 | 177 | |||||||||||||
Statutory valuation allowance adjustments
|
— | — | — | ||||||||||||||
Adjusted gross deferred tax assets
|
166 | 11 | 177 | ||||||||||||||
Deferred tax assets nonadmitted
|
(88) | — | (88) | ||||||||||||||
Subtotal net admitted deferred tax assets
|
78 | 11 | 89 | ||||||||||||||
Deferred tax liabilities
|
77 | 17 | 94 | ||||||||||||||
Net admitted deferred tax assets (liabilities)
|
$ | 155 | 28 | 183 |
December 31, 2023 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | 69 | 69 | |||||||||||||
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.)
|
498 | — | 498 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A | N/A | 971 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii
|
498 | — | 498 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c)
|
371 | — | 371 | ||||||||||||||
Deferred tax assets admitted
|
$ | 869 | 69 | 938 |
December 31, 2022 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | 58 | 58 | |||||||||||||
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.)
|
342 | — | 342 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A | N/A | 920 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii
|
342 | — | 342 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c)
|
448 | — | 448 | ||||||||||||||
Deferred tax assets admitted
|
$ | 790 | 58 | 848 |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | 11 | 11 | |||||||||||||
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.)
|
156 | — | 156 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A | N/A | 50 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii
|
156 | — | 156 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c)
|
(77) | — | (77) | ||||||||||||||
Deferred tax assets admitted
|
$ | 79 | 11 | 90 |
December 31 | ||||||||||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||||||||
Ratio percentage used to determine recovery period and threshold limitation amount | 645 | % | 650 | % | (5) | % | ||||||||||||||||||||
Amount of adjusted capital and surplus used to determine recovery period threshold limitation | $ | 6,470 | 6,136 | 334 |
December 31 | 2023-2022 Change | 2022-2021 Change | |||||||||||||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||||||||||||||
Current year federal tax expense (benefit) - ordinary income | $ | 574 | (2) | 1,091 | 576 | (1,093) | |||||||||||||||||||||||
Current year foreign tax expense (benefit) - ordinary income | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 574 | (2) | 1,091 | 576 | (1,093) | ||||||||||||||||||||||||
Current year tax expense - net realized capital gains (losses) | (102) | (43) | 249 | (59) | (292) | ||||||||||||||||||||||||
Federal and foreign income taxes incurred | $ | 472 | (45) | 1,340 | 517 | (1,385) |
December 31 | ||||||||||||||||||||
Deferred tax assets | 2023 | 2022 | Change | |||||||||||||||||
Ordinary: | ||||||||||||||||||||
Unrealized losses | $ | 59 | 3 | 56 | ||||||||||||||||
Deferred acquisition costs | 246 | 213 | 33 | |||||||||||||||||
Expense accruals | 79 | 66 | 13 | |||||||||||||||||
Policyholder reserves | 640 | 518 | 122 | |||||||||||||||||
VM-21 reserves | 24 | 73 | (49) | |||||||||||||||||
Foreign tax credit carryforward | — | 5 | (5) | |||||||||||||||||
Nonadmitted assets | 17 | 20 | (3) | |||||||||||||||||
Subtotal | 1,065 | 898 | 167 | |||||||||||||||||
Statutory valuation allowance adjustment | — | — | — | |||||||||||||||||
Nonadmitted ordinary deferred tax assets | (196) | (108) | (88) | |||||||||||||||||
Admitted ordinary tax assets | 869 | 790 | 79 | |||||||||||||||||
Capital: | ||||||||||||||||||||
Impaired assets | 65 | 56 | 9 | |||||||||||||||||
Unrealized losses | 4 | 2 | 1 | |||||||||||||||||
Subtotal | 69 | 58 | 10 | |||||||||||||||||
Statutory valuation allowance adjustment | — | — | — | |||||||||||||||||
Nonadmitted capital deferred tax assets | — | — | — | |||||||||||||||||
Admitted capital deferred tax assets | 69 | 58 | 10 | |||||||||||||||||
Admitted deferred tax assets | $ | 938 | 848 | 89 |
December 31 | ||||||||||||||||||||
Deferred tax liabilities | 2023 | 2022 | Change | |||||||||||||||||
Ordinary: | ||||||||||||||||||||
Investments | $ | (64) | (61) | (3) | ||||||||||||||||
Fixed assets | (4) | (4) | — | |||||||||||||||||
Policyholder reserves | (182) | (275) | 93 | |||||||||||||||||
Software capitalization | (6) | (11) | 5 | |||||||||||||||||
Unrealized gains | (115) | (97) | (18) | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
Subtotal | (371) | (448) | 77 | |||||||||||||||||
Capital: | ||||||||||||||||||||
Unrealized gains | (3) | (21) | 18 | |||||||||||||||||
Subtotal | (3) | (21) | 18 | |||||||||||||||||
Deferred tax liabilities | $ | (374) | (469) | 95 | ||||||||||||||||
Net deferred tax assets (liabilities) | $ | 564 | 379 | 185 |
December 31 | |||||||||||||||||
2023 | 2022 | Change | |||||||||||||||
Net deferred tax assets (liabilities)
|
$ | 759 | 487 | 272 | |||||||||||||
Statutory valuation allowance adjustment
|
— | — | — | ||||||||||||||
Net deferred tax assets (liabilities) after statutory valuation allowance
|
759 | 487 | 272 | ||||||||||||||
Tax effect of unrealized gains (losses)
|
162 | 208 | (46) | ||||||||||||||
Statutory valuation allowance adjustment allocated to unrealized gains (losses)
|
— | — | — | ||||||||||||||
Tax impact due to correction of error | 9 | — | 9 | ||||||||||||||
Change in net deferred income tax | $ | 930 | $ | 695 | $ | 235 |
December 31, 2023 | December 31, 2022 | December 31, 2021 | |||||||||||||||
Federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Amortization of IMR | (0.3) | (0.3) | (1.9) | ||||||||||||||
Dividends received deduction | (0.9) | (0.4) | (1.3) | ||||||||||||||
Nondeductible expenses | 2.9 | 1.3 | 0.1 | ||||||||||||||
Affiliated LLC income | (0.2) | (0.2) | (0.2) | ||||||||||||||
COLI | (0.7) | 0.1 | (2.4) | ||||||||||||||
Tax hedges | 8.5 | (4.5) | (6.5) | ||||||||||||||
Tax hedge reclassification | (7.0) | (15.0) | 73.7 | ||||||||||||||
Tax credits | (2.8) | (2.0) | (9.6) | ||||||||||||||
Prior period adjustments | 0.1 | — | (1.2) | ||||||||||||||
Change in deferred taxes on impairments | (0.5) | (0.3) | 0.6 | ||||||||||||||
Change in deferred taxes on nonadmitted assets | 0.1 | (0.2) | (0.4) | ||||||||||||||
Change in deferred tax reclassified to Change due to correction of accounting error | (0.4) | — | — | ||||||||||||||
Reinsurance | (3.0) | (1.9) | 83.5 | ||||||||||||||
Correction of error surplus | 0.4 | — | 2.0 | ||||||||||||||
Tax contingencies | (1.7) | 0.4 | 10.6 | ||||||||||||||
Realized capital gains tax | (4.7) | (1.5) | 47.4 | ||||||||||||||
Other | 0.2 | — | (1.4) | ||||||||||||||
Effective tax rate | 11.0 | % | (3.5) | % | 214.0 | % | |||||||||||
Federal and foreign income taxes incurred | 26.6 | % | (0.1) | % | 207.4 | % | |||||||||||
Realized Capital Gains Tax | (4.7) | (1.5) | 47.4 | ||||||||||||||
Change in net deferred tax | (10.9) | (1.9) | (40.8) | ||||||||||||||
Effective tax rate | 11.0 | % | (3.5) | % | 214.0 | % |
Members of Consolidated Tax Group | |||||
Allianz Life Insurance Company of North America | Allianz Life Insurance Company of Missouri | ||||
Allianz Life Insurance Company of New York | 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. |
2023 | 2022 | 2021 | ||||||||||||||||||
Balance at January 1, net of reinsurance recoverables of $845, $734, and $665, respectively | $ | 437 | 385 | 337 | ||||||||||||||||
Incurred related to: | ||||||||||||||||||||
Current year | 242 | 201 | 189 | |||||||||||||||||
Prior years | (15) | (39) | (47) | |||||||||||||||||
Total incurred | 227 | 162 | 142 | |||||||||||||||||
Paid related to: | ||||||||||||||||||||
Current year | 12 | 11 | 10 | |||||||||||||||||
Prior years | 121 | 99 | 84 | |||||||||||||||||
Total paid | 133 | 110 | 94 | |||||||||||||||||
Balance at December 31, net of reinsurance recoverables of $1,000, $845, and $734, respectively | $ | 531 | 437 | 385 |
For the years ended December 31, | ||||||||||||||
Reduction in: | 2023 | 2022 | ||||||||||||
Aggregate reserves * | $ | 27,184 | 17,122 | |||||||||||
Deposit-type contracts | 423 | 257 | ||||||||||||
Policy and contract claims | 50 | 33 | ||||||||||||
*Aggregate reserves are reduced by funds withheld agreements that results in a reclassification of reserves to Funds held under reinsurance treaties on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus in the amount of $10,034 and $139 as of December 31, 2023 and 2022, respectively. |
Year ended | Direct amount | Ceded to other companies | Assumed from other companies | Net amount | ||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||
Life insurance in-force | $ | 89,951 | 52,123 | 42 | 37,870 | |||||||||||||||||||||
Premiums: | ||||||||||||||||||||||||||
Life | 1,649 | 102 | — | 1,547 | ||||||||||||||||||||||
Annuities | 16,985 | 1,208 | — | 15,777 | ||||||||||||||||||||||
Accident and health | 177 | 73 | 75 | 179 | ||||||||||||||||||||||
Total premiums | $ | 18,811 | 1,383 | 75 | 17,503 | |||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Life insurance in-force | $ | 80,796 | 48,002 | 41 | 32,835 | |||||||||||||||||||||
Premiums: | ||||||||||||||||||||||||||
Life | 1,537 | 94 | — | 1,443 | ||||||||||||||||||||||
Annuities | 13,438 | 762 | — | 12,676 | ||||||||||||||||||||||
Accident and health | 170 | 71 | 70 | 169 | ||||||||||||||||||||||
Total premiums | $ | 15,145 | 927 | 70 | 14,288 | |||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Life insurance in-force | $ | 65,088 | 41,500 | 50 | 23,638 | |||||||||||||||||||||
Premiums: | ||||||||||||||||||||||||||
Life | 1,453 | 94 | 1 | 1,360 | ||||||||||||||||||||||
Annuities | 13,226 | 623 | — | 12,603 | ||||||||||||||||||||||
Accident and health | 168 | 68 | 62 | 162 | ||||||||||||||||||||||
Total premiums | $ | 14,847 | 785 | 63 | 14,125 |
2023 | Percentage of total | 2022 | Percentage of total | |||||||||||||||||||||||
Subject to discretionary withdrawal: | ||||||||||||||||||||||||||
With market value adjustment | $ | 61,551 | 40 | % | $ | 54,155 | 37 | % | ||||||||||||||||||
At book value less current surrender charges of 5% or more | 39,841 | 26 | 34,062 | 23 | ||||||||||||||||||||||
At market value | 15,527 | 10 | 15,629 | 10 | ||||||||||||||||||||||
Total with adjustment or at market value | 116,919 | 76 | 103,846 | 70 | ||||||||||||||||||||||
At book value without adjustment (minimal or no charge or adjustment) | 30,105 | 19 | 34,870 | 24 | ||||||||||||||||||||||
Not subject to discretionary withdrawal | 7,718 | 5 | 8,187 | 6 | ||||||||||||||||||||||
Total gross | 154,742 | 100 | % | 146,903 | 100 | % | ||||||||||||||||||||
Reinsurance ceded | 23,033 | 12,936 | ||||||||||||||||||||||||
Total net | $ | 131,709 | $ | 133,967 | ||||||||||||||||||||||
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: | $ | 3,825 | $ | 3,376 |
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) | $ | 80,492 | 89,017 | |||||||||||
Supplemental contracts with life contingencies, net | 1,978 | 2,036 | ||||||||||||
Deposit-type contracts | 3,842 | 4,233 | ||||||||||||
Subtotal | 86,312 | 95,286 | ||||||||||||
Separate Accounts Annual Statement: | ||||||||||||||
Annuities, net (excluding supplementary contracts with life contingencies) | 45,381 | 38,667 | ||||||||||||
Supplemental contracts with life contingencies, net | 16 | 14 | ||||||||||||
Subtotal | 45,397 | 38,681 | ||||||||||||
Total annuity actuarial reserves and deposit fund liabilities | $ | 131,709 | 133,967 |
2023 | |||||||||||
General Account | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Universal life | $ | 754 | 752 | 758 | |||||||
Universal life with secondary guarantees | 58 | 54 | 141 | ||||||||
Indexed life | 8,957 | 7,820 | 7,869 | ||||||||
Other permanent cash value life insurance | 86 | 86 | 86 | ||||||||
Variable universal life | 2 | 2 | 2 | ||||||||
Miscellaneous reserves | — | — | 302 | ||||||||
Not subject to discretionary withdrawal or no cash values: | |||||||||||
Term policies without cash value | XXX | XXX | 184 | ||||||||
Disability, active lives | XXX | XXX | 49 | ||||||||
Disability, disabled lives | XXX | XXX | 5 | ||||||||
Miscellaneous reserves | XXX | XXX | 39 | ||||||||
Total gross | 9,857 | 8,714 | 9,435 | ||||||||
Reinsurance ceded | 560 | 560 | 791 | ||||||||
Total net | $ | 9,297 | 8,154 | 8,644 | |||||||
2022 | |||||||||||
General Account | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Universal life | $ | 786 | 785 | 791 | |||||||
Universal life with secondary guarantees | 58 | 53 | 140 | ||||||||
Indexed life | 7,857 | 6,824 | 6,859 | ||||||||
Other permanent cash value life insurance | 97 | 97 | 97 | ||||||||
Variable universal life | 2 | 2 | 2 | ||||||||
Not subject to discretionary withdrawal or no cash values: | |||||||||||
Term policies without cash value | XXX | XXX | 198 | ||||||||
Disability, active lives | XXX | XXX | 49 | ||||||||
Disability, disabled lives | XXX | XXX | 5 | ||||||||
Miscellaneous reserves | XXX | XXX | 40 | ||||||||
Total gross | 8,800 | 7,761 | 8,181 | ||||||||
Reinsurance ceded | 587 | 587 | 848 | ||||||||
Total net | $ | 8,213 | 7,174 | 7,333 | |||||||
The Company does not have any life policies with guarantees in the separate account. | |||||||||||
2023 | |||||||||||
Separate Account Nonguaranteed | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Variable universal life | $ | 17 | 17 | 17 | |||||||
Total gross | 17 | 17 | 17 | ||||||||
Reinsurance ceded | — | — | — | ||||||||
Total net | $ | 17 | 17 | 17 | |||||||
2022 | |||||||||||
Separate Account Nonguaranteed | Account Value | Cash Value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Variable universal life | $ | 16 | 16 | 16 | |||||||
Total gross | 16 | 16 | 16 | ||||||||
Reinsurance ceded | — | — | — | ||||||||
Total net | $ | 16 | 16 | 16 |
Reconciliation of total life actuarial reserves: | 2023 | 2022 | ||||||
Life, Accident, and Health Annual Statement: | ||||||||
Life insurance, net | $ | 8,274 | $ | 7,263 | ||||
Disability, active lives, net | 46 | 47 | ||||||
Disability, disabled lives, net | 1 | 1 | ||||||
Miscellaneous reserves, net | 323 | 22 | ||||||
Subtotal | 8,644 | 7,333 | ||||||
Separate Accounts Annual Statement: | ||||||||
Life insurance, net | 17 | 16 | ||||||
Subtotal | 17 | 16 | ||||||
Total life actuarial reserves | $ | 8,661 | $ | 7,349 |
2023 | 2022 | ||||||||||
Premiums, considerations, or deposits | $ | 5,405 | 4,839 | ||||||||
Reserves: | |||||||||||
Reserves for accounts with assets at fair value | 15,695 | 15,788 | |||||||||
Reserves for accounts with assets at amortized cost | 29,719 | 22,909 | |||||||||
Total reserves | $ | 45,414 | 38,697 | ||||||||
By withdrawal characteristics: | |||||||||||
At book value without MV adjustment and with current surrender charge of 5% or more | $ | 25,533 | 19,533 | ||||||||
At fair value | 15,658 | 15,753 | |||||||||
At book value without MV adjustment and with current surrender charge of less than 5% | 4,192 | 3,382 | |||||||||
Subtotal | 45,383 | 38,668 | |||||||||
Not subject to discretionary withdrawal | 31 | 29 | |||||||||
Total | $ | 45,414 | 38,697 |
2023 | 2022 | |||||||||||||||||||
Product/transaction | Legally insulated | Not legally insulated | Legally insulated | Not legally insulated | ||||||||||||||||
Variable Annuities | $ | 15,462 | — | 15,624 | — | |||||||||||||||
Variable Life | 17 | — | 16 | — | ||||||||||||||||
Variable Annuities (Non-Unitized Insulated) | 453 | — | 411 | — | ||||||||||||||||
Variable Annuities (Non-Unitized Non-Insulated) | — | 36,826 | — | 27,420 | ||||||||||||||||
Variable Annuities (MN MVA) | — | 23 | — | 31 | ||||||||||||||||
Total | $ | 15,932 | 36,849 | 16,051 | 27,451 |
2023 | 2022 | 2021 | |||||||||||||||
Transfers as reported in the Summary of Operations of the Separate Accounts Annual Statement: | |||||||||||||||||
Transfers to separate accounts | $ | 5,405 | 4,839 | 5,927 | |||||||||||||
Transfers from separate accounts | (4,579) | (3,106) | (3,507) | ||||||||||||||
Net transfers to separate accounts | 826 | 1,733 | 2,420 | ||||||||||||||
Reconciling adjustments: | |||||||||||||||||
Other adjustments | 8 | (1) | 4 | ||||||||||||||
Transfers as reported in the Statutory Statements of Operations | $ | 834 | 1,732 | 2,424 |
2023 | 2022 | 2021 | ||||||||||||||||||
Allianz Investment Management, LLC | $ | 34 | 47 | 41 | ||||||||||||||||
AZL PF Investments, Inc. (AZLPF) (1)
|
67 | 30 | — | |||||||||||||||||
Allianz Individual Insurance Group, LLC (AIIG) | — | 5 | 4 | |||||||||||||||||
Total | $ | 101 | 82 | 45 | ||||||||||||||||
(1) Dividends received from AZLPF includes $38 of dividends that originated from Allianz Fund Investments, Inc., which paid dividends to its immediate parent, Dresdner Kleinwort Pfandbriefe Investments II, Inc. ("DKPII"). DKPII then paid dividends to AZLPF, which subsequently paid dividends to the Company. | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
AZNY | $ | 30 | 30 | — | ||||||||||||||||
Allianz Investment Management U.S. LLC (AIM US) | — | — | 8 | |||||||||||||||||
ALFS | 51 | 42 | 48 | |||||||||||||||||
Allianz Strategic Investments, LLC (ASI) | $ | 7 | 13 | 66 | ||||||||||||||||
Total | $ | 88 | 85 | 122 |
Entity | Reporting Entity's Share of Entity's Net Income (Loss) | Accumulated Share of Net Income (Losses) | Reporting Entity's Share of Equity, Including Negative Equity | Guaranteed Obligation / Commitment for Financial Support (Yes / No) | Reported Value | ||||||||||||
AIM U.S. LLC | $ | — | (11) | (11) | YES | $ | — | ||||||||||
Yorktown Holdings | — | — | — | YES | $ | — |
Authorized | Issued and outstanding | Par value, per share | Redemption and liquidation rights | |||||||||||||||||||||||
Common stock | 40,000,000 | 20,000,001 | $ | 1.00 | None | |||||||||||||||||||||
Preferred stock: | ||||||||||||||||||||||||||
Class A (consisting of Series A and B below) | 200,000,000 | 18,903,484 | $ | 1.00 | Designated by Board for each series issued | |||||||||||||||||||||
Class A, Series A | 8,909,195 | 8,909,195 | $ | 1.00 | $35.02 per share plus an amount to yield a compounded annual return of 6%, after actual dividends paid | |||||||||||||||||||||
Class A, Series B | 10,000,000 | 9,994,289 | $ | 1.00 | $35.02 per share plus an amount to yield a compounded annual return of 6%, after actual dividends paid | |||||||||||||||||||||
Class B | 400,000,000 | — | $ | 1.00 | Designated by Board for each series issued |
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:
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REGULAR MAIL
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Allianz Life Insurance Company of North America
P.O. Box 59060
Minneapolis MN 55459-0060
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OVERNIGHT, CERTIFIED, OR REGISTERED MAIL
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Allianz Life Insurance Company of North America
5701 Golden Hills Drive
Minneapolis MN 55416-1297
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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.
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