6
|
||
13
|
||
17
|
||
|
17
|
|
|
18
|
|
|
20
|
|
21
|
||
|
21
|
|
|
22
|
|
|
22
|
|
|
22
|
|
22
|
||
|
22
|
|
|
23
|
|
|
24
|
|
|
24
|
|
|
25
|
|
|
26
|
|
|
27
|
|
|
27
|
|
|
28
|
|
|
29
|
|
|
30
|
|
|
30
|
|
|
30
|
|
1.
|
30
|
|
|
31
|
|
|
31
|
|
|
33
|
|
2.
|
33
|
|
|
33
|
|
|
34
|
|
|
34
|
|
|
35
|
|
|
35
|
|
|
35
|
|
|
36
|
|
|
36
|
3.
|
37
|
|
|
37
|
|
|
37
|
|
|
38
|
|
|
39
|
|
|
39
|
|
|
40
|
|
4.
|
40
|
|
|
41
|
|
|
42
|
|
|
43
|
|
|
46
|
|
|
49
|
|
|
51
|
|
|
52
|
|
|
53
|
|
|
55
|
|
5.
|
55
|
|
|
55
|
|
|
56
|
|
|
57
|
|
6.
|
57
|
|
|
58
|
|
|
59
|
|
|
59
|
|
|
60
|
|
|
62
|
|
|
62
|
|
|
62
|
|
|
62
|
|
7.
|
63
|
|
|
64
|
|
|
64
|
|
|
65
|
|
|
65
|
|
|
65
|
|
8.
|
66
|
|
|
66
|
|
|
66
|
|
|
67
|
|
9.
|
69
|
10.
|
73
|
|
|
73
|
|
|
73
|
|
|
75
|
|
|
76
|
|
|
76
|
|
|
79
|
|
|
80
|
|
|
81
|
|
|
82
|
|
|
82
|
|
|
82
|
|
11.
|
82
|
|
|
83
|
|
|
85
|
|
|
86
|
|
|
86
|
|
12.
|
86
|
|
|
86
|
|
|
87
|
|
|
88
|
|
|
88
|
|
|
88
|
|
|
88
|
|
|
89
|
|
|
90
|
|
|
90
|
|
|
90
|
|
|
91
|
|
|
91
|
|
|
91
|
|
|
91
|
|
|
92
|
|
|
93
|
|
|
94
|
|
|
94
|
|
|
94
|
|
|
94
|
|
|
94
|
|
|
95
|
|
|
95
|
13.
|
95
|
|
|
95
|
|
|
95
|
|
|
95
|
|
|
96
|
|
|
97
|
|
|
97
|
|
|
98
|
|
|
98
|
|
14.
|
98
|
|
|
98
|
|
|
103
|
|
|
114
|
|
|
114
|
|
|
114
|
|
15.
|
122
|
|
123
|
||
|
123
|
|
|
123
|
|
|
124
|
|
|
124
|
|
|
125
|
|
126
|
||
128
|
||
|
128
|
|
|
128
|
|
130
|
||
139
|
||
140
|
||
|
140
|
|
|
141
|
|
|
141
|
|
146
|
||
147
|
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withdrawn, declining to 0% over that time period.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 take Income Payments, 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 with DPSC and Index Protection Strategy with Cap.
These Crediting Methods are not subject to the
Daily Adjustment.
|
Fee Tables
4. Valuing Your
Contract
6. Expenses
Appendix B –
Daily
Adjustment
|
||
Transaction
Charges
|
Other than 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, there are no other
transaction charges.
|
Not Applicable
|
||
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 G –
Fund Available
Under the
Contract
|
||
Annual Fee
|
Minimum
|
Maximum
|
||
Base Contract(1)
|
1.95%
|
1.95%
|
||
Investment Options(2)
(Fund fees and expenses)
|
0.88%
|
0.88%
|
||
|
Optional Benefits Available for an Additional
Charge(3)
(for a single optional benefit, if elected)
|
0.20%
|
0.20%
|
|
|
(1)
Base Contract fee is comprised of two charges
referred to as the “product fee” and the “rider fee for the
Income Benefit” in the Contract and elsewhere in
this prospectus. As a percentage of the Charge Base, plus
an amount attributable to the contract maintenance
charge.
|
|
||
|
(2)
As a percentage of the AZL Government Money
Market 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:
$2,500
|
Highest Annual Cost:
$2,652
|
|
|
|
Assumes:
•Investment of $100,000 in the Variable
Option (even though you cannot select
the Variable Option for investment)
•5% annual appreciation
•0.70% Income Benefit rider fee
•Traditional Death Benefit
•No additional Purchase Payments,
transfers, or withdrawals
•No financial adviser fees
|
Assumes:
•Investment of $100,000 in the Variable
Option (even though you cannot select
the Variable Option for investment)
•5% annual appreciation
•0.70% Income Benefit rider fee
•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, long-term income, and living benefit guarantees,
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
take Income Payments, you execute
a Performance Lock, you annuitize the Contract, we
pay a death benefit, or we deduct
Contract fees and expenses.
• A minimum waiting period applies before Income Payments may be taken under the
Income Benefit. In addition, even if the waiting
period has expired, Income Payments
cannot begin before age 50.
• Withdrawals will reduce the initial annual maximum Income Payment. Withdrawals that
exceed limits specified by the terms of the Income
Benefit (Excess Withdrawals) will
reduce your future annual maximum Income Payment.
These reductions may be greater
than the value withdrawn and could end the
benefit.
• The Traditional Death Benefit may not be modified, but it will terminate if you take
withdrawals (including Income Payments) 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
11. Death Benefit
Appendix B –
Daily Adjustment
|
|
RISKS
|
Prospectus
Location
|
||
Risks
Associated
with
Investment
Options
|
• An investment in the Contract is subject to the risk of poor investment performance and
can vary depending on the performance of the
Variable Option and the Index Options
available under the Contract.
• The Variable Option and each Index Option have their own unique risks.
• You should review the Fund’s prospectus and disclosures, including risk factors, before
making an investment decision.
|
Risk Factors
|
||
Insurance
Company
Risks
|
An investment in the Contract is subject to the
risks related to us. All obligations,
guarantees or benefits of the Contract are the
obligations of Allianz Life 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.
• You cannot allocate Purchase Payments to the Variable Option. The sole purpose of the
Variable Option is to hold Purchase Payments until
they are transferred to your selected
Index Options.
• We restrict additional Purchase Payments during the Accumulation Phase. Each Index
Year before the Income Period, you cannot add more
than your initial amount (i.e., the
total of all Purchase Payments received before the
first Quarterly Contract Anniversary of
the first Contract Year) without our prior
approval.
• We do not accept additional Purchase Payments during the Income Period (which is part
of the Accumulation Phase) or the Annuity Phase.
• 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.
• The Income Benefit terms stated in the Income Benefit Supplement may be modified
before issue. After the Issue Date the Income
Benefit may terminate under certain
circumstances as stated in section 10, Income
Benefit.
• During the Income Period only the Index Options with the Index Protection Strategy with
DPSC and Index Protection Strategy with Cap are
available to you.
• We reserve the right to substitute the Fund in which the Variable Option invests. We also
reserve the right to substitute Indexes either on
a Term Start Date or during a Term. We
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 Option's
Underlying Fund
10. Income
Benefit
Appendix A –
Available Indexes
|
||
Optional
Benefits
|
• The optional Maximum Anniversary Value Death Benefit may not be modified.
Withdrawals (including Income Payments) 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.
|
11. Death Benefit
|
|
TAXES
|
Prospectus
Location
|
||
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.
|
12. 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.
|
13. Other
Information –
Distribution
|
||
Exchanges
|
Some Financial Professionals may have a financial
incentive to offer you a new contract in
place of one you already own. You should only
exchange your contract if you determine,
after comparing the features, fees, and risks of
both contracts, that it is better for you to
purchase the new contract rather than continue to
own your existing contract.
|
13. 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
with DPSC 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
|
• 0.50% minimum DPSC
|
Index Protection Strategy
with Cap 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
|
• 0.50% minimum Cap
|
Index Precision 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
|
• 3% minimum Precision Rate
|
Index Guard Strategy
1-year Term with -10% Floor
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 3% 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
|
• 3% minimum Cap
|
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 20% Buffer
• Not available to Contracts issued since
April 30, 2021.
• Available only to Contracts issued
before April 30, 2021.
|
• S&P 500® Index
• Russell 2000® Index
|
• 5% minimum Cap
• Can be “uncapped” (i.e., we do not declare a
Cap for that Term)
|
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
• 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%
|
|
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)(3)
|
|
|
Administrative Expenses (or contract
maintenance charge)(1)
(per year)
|
$50
|
Base Contract Expenses(2)
(as a percentage of the Charge Base)
|
1.95%
|
Optional Benefit Expenses – Maximum
Anniversary Value Death Benefit
(as a percentage of the Charge Base)
|
0.20%
|
(expenses that are deducted from Fund assets, including management fees,
distribution and/or service (12b-1) fees, and other expenses)
|
0.88%
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
(1) If you surrender your Contract (take a full withdrawal) at the end
of the applicable time period:
|
$11,553
|
$16,337
|
$20,865
|
$33,313
|
(2) If you annuitize your Contract at the end of the applicable time
period.
|
N/A*
|
$9,337
|
$15,865
|
$33,313
|
(3) If you do not surrender your Contract.
|
$3,053
|
$9,337
|
$15,865
|
$33,313
|
|
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.
|
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
|
• We pay a death benefit to the Beneficiary unless the
Beneficiary is the surviving spouse and continues the Contract.
The Income Benefit and any Income Payments will also end
unless the Beneficiary is both a surviving spouse and either an
Eligible Person (if Income Payments have not begun) or a
Covered Person (if Income Payments have begun).
• 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,
– if Income Payments have not begun the Accumulation
Phase continues,
– if Income Payments have begun they can only continue if
the surviving spouse is a Covered Person; otherwise the
Income Benefit ends, 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 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. If Income
Payments were converted to Annuity Payments under
one of these Annuity Options, we will also pay any
remaining value to the named Beneficiary(ies).
– 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.
• 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.
|
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).
|
• Purchase Payments we hold in the Variable Option before transferring them to your selected Index Options are
subject to Contract
fees and expenses (e.g. product fee, contract maintenance charge), and market risk and may
lose value.
|
For Owners of Qualified Contracts, AIP is not
available 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….
|
• we hold assets in the Variable Option on an interim basis
before transferring them to your selected Index
Option(s), or
due to a Contract Value increase associated with the
death of
a Determining Life, or
• there is positive Fund performance
|
• you take assets out of the Variable Option by withdrawal
(including financial adviser fees that you choose to
have us
pay from this Contract),
• we transfer assets held in the Variable Option on an interim
basis to your selected Index Option(s) according to
Purchase
Payment default instructions,
• there is negative Fund performance, or
• we deduct Contract fees and expenses
|
Contract fees and
expenses we deduct from the Variable Option include the 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.
|
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 Variable Option 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 with DPSC
|
• Most protection.
• If the Index loses value, the Credit is zero. You do not receive a negative Credit.
|
Index Protection
Strategy with Cap
|
• Most protection.
• If the Index loses value, the Protection Credit is zero. You do not receive a negative Protection Credit.
|
Index Precision Strategy
|
• Less protection than the Index Protection Strategy with DPSC, Index Protection Strategy with Cap,
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 with DPSC and Index Protection Strategy with
Cap, 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.
|
What is the asset protection?
|
|
Index Performance
Strategy
|
• Less protection than the Index Protection Strategy with DPSC, Index Protection Strategy with Cap,
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 with DPSC
|
• 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 Caps and the Precision Rates.
|
Index Protection
Strategy with Cap
|
• Growth opportunity limited by the Caps.
• May perform best in periods of small positive market movements relative to the other Crediting
Methods, because such small positive market movements
would result in positive Protection Credits
while also providing complete protection from any
Index losses.
• Generally more growth opportunity than the Index Protection Strategy with DPSC, but less than the
Index Precision Strategy, Index Guard Strategy, and
Index Performance Strategy.
• Caps will generally be greater than DPSCs, but less than the Index Precision Strategy Precision
Rates and Caps for the Index Guard Strategy and Index
Performance Strategy.
|
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 with DPSC and Index
Protection Strategy with Cap, 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.
|
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
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 with DPSC
|
• Renewal DPSCs for existing Contracts can change on each Term Start Date.
– 1-year Term has a 0.50% minimum DPSC.
|
What can change within a Crediting
Method?
|
|
Index Protection
Strategy with Cap
|
• Renewal Caps for existing Contracts can change on each Term Start Date.
– 1-year Term has a 0.50% minimum Cap.
|
Index Precision Strategy
|
• Renewal Precision Rates for existing Contracts can change on each Term Start Date.
– 1-year Term has a 3% 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.
– 1-year Term has a 3% 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.
– 1-year Term with 10% Buffer has a 3% minimum Cap.
– For Contracts issued before April 30, 2021, the 3-year Term with 20% Buffer has a 5% minimum Cap.
– For Contracts issued since 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 since 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 0.50%, 3%, 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
August 3, 2020 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 2020,
|
– 14% renewal rate for existing Contracts issued in 2019, and
|
– 12% renewal rate for existing Contracts issued in 2018.
|
|
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 Index Option or the Variable Option we deduct Contract fees and expenses; we
deduct Contract fees and expenses from each Index
Option and the Variable Option proportionately based on its
percentage of Contract Value. However, you can specify
from which Index Option or the Variable 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 providing partial
withdrawal deduction instructions.
|
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 with DPSC
1-year Term
|
Credit is zero.
|
Credit is equal to the DPSC set on the Term Start
Date.
|
Index Protection
Strategy with Cap
1-year Term
|
Protection Credit is zero.
|
Protection Credit is equal to the Index Return up to
the Cap set on the Term Start Date.
Assume the Cap is 5%. If the Index Return is…
• 0%, the Protection Credit is zero.
• 4%, the Protection Credit is 4%.
• 12%, the Protection Credit is 5%.
|
Index Precision
Strategy 1-year Term
|
Performance Credit is equal to the negative Index
Return in excess of the 10% Buffer.
If the Index Return is…
• -8%, the Performance Credit is zero.
• -12%, the Performance Credit is -2%.
|
Performance Credit is equal to the Precision Rate
set on the Term Start Date.
|
Index Guard Strategy
1-year Term
|
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%.
|
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 20% Buffer
• Not available to
Contracts issued since
April 30, 2021.
• Available only to
Contracts issued before
April 30, 2021.
|
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%.
|
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.
|
Currently the Contract does not offer any variable
investment options to which you can allocate money. As such, and
given the design of the Contract, we do not believe
there to be a risk of excessive trading and market timing. However, if
we were to offer multiple variable investment options
in the future, they would be subject to the following provisions.
|
This Contract is not designed for professional market
timing organizations, or other persons using programmed, large, or
frequent transfers, and we may restrict excessive or
inappropriate transfer activity.
|
|
Base Contract Expenses
(as a percentage of the Charge Base)
|
Product Fee(1)
|
1.25%
|
Rider Fee for the Income Benefit
|
0.70%
|
Total Base Contract Expenses
|
1.95%
|
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 and
rider fees, on the
day after the Issue
Date.
|
• First we calculate and accrue the daily product
and rider fees, 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 AZL
Government Money Market Fund 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 and rider
fees for the prior quarter).
All partial withdrawals you take reduce the
Charge Base, even Penalty-Free Withdrawals.
– We deduct the accrued product and rider fees
for the prior quarter on a dollar for dollar basis
from the Contract Value, and proportionately
from each Index Option and the Variable
Option.
• Then we set the Charge Base equal to this
Contract Value and we calculate and accrue the
next quarter’s daily product and rider fees 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 and
rider fees we calculate and accrue on the
next day.
|
||
Examples of how we
calculate the product and rider fees are included in Appendix C.
|
We do not treat the deduction of the accrued product
and rider fees as a withdrawal when computing your Guaranteed
Death Benefit Value (see section 11).
|
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 and rider fees, we deduct your total remaining
Contract Value to cover the accrued product and rider
fees and reduce your Contract Value to zero. If the deduction of
the accrued product and rider fees reduces your
Contract Value to zero and the Income Benefit and your selected death
benefit have 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
11).
|
Calculating a Withdrawal Charge
|
Example
|
|||
For purposes of calculating any withdrawal charge, we
withdraw
Purchase Payments on a “first-in-first-out” (FIFO)
basis and we
process withdrawal requests as follows.
|
You make an initial Purchase Payment of $55,000 and
make
another Purchase Payment in the first month of the
second
Contract Year of $45,000. In the third month of the
third
Contract Year, your Contract Value is $110,000 and you
request a $70,000 withdrawal before the Income Period.
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, RMD payments you take under our
minimum
distribution program, and Income Payments.
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 $55,000, which is subject to
a 7%
withdrawal charge, and you receive $51,150. We
determine
this amount as follows:
(amount withdrawn) x (1 – withdrawal charge) = the
amount you receive, or:
$55,000 x 0.93 = $51,150
The total amount we withdraw from the second Purchase
Payment is $9,620, which is subject to an 8%
withdrawal
charge, and you receive $8,850. We determine this
amount
as follows:
(amount withdrawn) x (1 – withdrawal charge) = the
amount you receive, or:
$9,620 x 0.92 = $8,850
|
Calculating a Withdrawal Charge
|
Example
|
|||
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%
|
|
||
4. Finally, we withdraw any Contract earnings. This withdrawal is
not subject to a withdrawal charge and it does not
reduce the
Withdrawal Charge Basis.
|
4. Contract earnings. We already withdrew your requested
amount, so this does not apply.
In total we withdrew $74,620 from
your Contract, of
which you received $70,000 and paid a
withdrawal
charge of $4,620. We also reduced the
1st Purchase
Payment from $55,000 to $0, and your
2nd Purchase
Payment from $45,000 to $35,380
($45,000 – $9,620).
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
and we tax report to each Joint Owner individually.
Tax reporting each
Joint Owner individually can create a discrepancy in taxation if only one Joint Owner is under
age 59 1∕2 because that Joint Owner may be subject to the 10% additional federal tax.
|
• We may be required to provide information about you or your Contract to government regulators. We may also be
required to stop Contract disbursements and thereby
refuse any transfer requests, and refuse to pay any withdrawals
(including a full withdrawal), or death benefits until
we receive instructions from the appropriate regulator. If,
pursuant to SEC rules, the AZL Government Money Market
Fund suspends payment of redemption proceeds in
connection with a fund liquidation, we will delay
payment of any transfer, full or partial withdrawal, or death benefit
from the Variable Option until the Fund is liquidated.
|
The free withdrawal privilege is not
available upon a full withdrawal or during the Income Period.
|
• 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 during the Income Period or 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 Annuity Payments would be less than $100, we reserve the right to require you to take a full withdrawal and
your Contract will then terminate.
|
• If on the Annuity Date (which may occur as early as the second Index 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 and Income Payments have not begun, we make payments under Annuity
Option 2 with ten
years of guaranteed monthly payments. However, if Income Payments have begun on the
maximum Annuity Date
and you have not selected an Annuity Option we will convert your Income Payments to
Annuity Payments as
described in the next bullet. 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.
|
• For Contracts in the Income Period: We will convert your Income
Payments to Annuity Payments on the
maximum Annuity Date Income Payments have begun and you
have not selected an Annuity Option, or if your
Contract Value is greater than zero and you take
Annuity Payments under Annuity Option 1 or 3 as follows.
|
For single Income Payments, if you choose Annuity
Option 1 (Life Annuity) the sole Covered Person becomes the sole
Annuitant and your Annuity Payments are equal to the
greater of:
|
– annual Annuity Payments under Annuity Option 1 based on the Contract Value; or
|
– the current annual maximum Income Payment available to you.
|
For joint Income Payments, if you choose Annuity Option
3 (Joint and Last Survivor Annuity) with Annuity Payments
to continue at a level of 100% to the surviving joint
Annuitant, the joint Covered Persons become the joint Annuitants
and your Annuity Payments are equal to the greater of:
|
– annual Annuity Payments under Annuity Option 3 based on the Contract Value; or
|
– the current annual maximum Income Payment available to you.
|
If you select any other Annuity Option, we will not
convert your Income Payments to Annuity Payments. This means
you may receive less as Annuity
Payments than you would have received as Income Payments. You should
consult with your Financial
Professional before requesting Annuity Payments. On request we provide
illustrations showing you the amount
of Annuity Payments you could receive.
|
• If we convert your Income Payments to Annuity Payments:
|
– On the Annuity Date we establish a “remaining value” equal to your Contract Value. Each Annuity Payment
reduces the remaining value by the dollar amount paid.
Upon the death of the last surviving Annuitant, we will pay
any remaining value to the named Beneficiary(s).
|
– If you selected the Increasing Income payout option, your Annuity Payments will increase on each Index
Anniversary if your selected Index Options receive a
DPSC or Protection Credit as described in section 10.
|
– If you have a Non-Qualified Contract, these Annuity Payments will receive the benefit of the exclusion ratio, which
causes a portion of each Annuity Payment to be
non-taxable as described in section 12, Taxes – Taxation of
Annuity Contracts.
|
Standard Benefits (No Additional Charge)
|
|||
Name of
Benefit
|
Purpose
|
Maximum
Fee
|
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.
|
None
|
• Only available during the Accumulation Phase.
• Not available during the Income Period.
• 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.
|
None
|
• Only available during the Accumulation Phase.
• Not available during the Income Period.
• 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.
|
None
|
• 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.
|
None
|
• Only available during the Accumulation Phase.
• Not available during the Income Period or
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
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
Minimum
Distribution
Program
|
Allows you to automatically take withdrawals to
satisfy the minimum distribution requirements
(RMD) imposed by the Internal Revenue Code.
|
None
|
• Only available during the Accumulation Phase.
• Only available to IRA or SEP 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.
|
None
|
• 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.
|
None
|
• 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
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
Income
Benefit
|
Guaranteed lifetime withdrawal benefit providing
for yearly Income Payments until the death of the
Covered Person(s) if conditions are satisfied.
We base the initial Income Payment on the
Lifetime Income Percentage and Contract Value.
If you choose the Level Income payment option
and meet the age requirements stated in section
10, we guarantee your initial annual maximum
Income Payment will be at least the Level
Income Guarantee Payment Percentage
multiplied by your total Purchase Payments
adjusted for withdrawals.
The automatic annual payment increase feature
may increase payments after the Income Benefit
Date. With Level Income, payments increase if
Contract Value increases from one Income
Benefit Anniversary to the next.
Section 10 includes examples of the Lifetime
Income Percentage Calculation, Excess
Withdrawals, and Income Payment increases.
|
0.70%
(as a
percentage of
the Charge
Base)
This rider fee
is part of the
Base Contract
Expenses in
the Fee
Tables.
|
• Benefit cannot be removed before third Index
Anniversary or after Income Payments have
begun.
• See Income Benefit Supplement for current
terms.
• Benefit only available during the Accumulation
Phase.
• Investment restrictions limit available Index
Options during Income Period.
• Income Period cannot begin until after the
waiting period and reaching age 50. Income
Period must begin no later than age 100.
• Early and Excess Withdrawals may
significantly reduce or end the benefit as
indicated in section 10.
• A full Excess Withdrawal and certain partial
Excess Withdrawals
will cause Income
Payments to stop
and the Contract and all
of its benefits to end.
• Income Payments are subject to income taxes,
and may also be subject to a 10% additional
federal tax for amounts withdrawn before age
59 1∕2.
• No additional Purchase Payments during the
Income Period.
• No Income Percentage Increase before age
45.
• Availability of joint Income Payments subject to
age restrictions.
• Annuitizing the Contract will end the benefit,
but you may be able to annuitize your annual
maximum Income Payment.
• State variations may apply.
|
Traditional
Death
Benefit
|
Provides a death benefit equal to the greater of
the Contract Value, or Guaranteed Death Benefit
Value. The Guaranteed Death Benefit Value is
total Purchase Payments adjusted for
withdrawals.
An example of the death benefit provided by the
Traditional Death Benefit is included in section
11, Death Benefit.
An example of how deduction of financial adviser
fees impact the death benefit is included in
section 1.
The impact of an Excess Withdrawal on the
death benefit is included in section 10.
|
None
|
• 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, and in the
Excess Withdrawal example in section 10,
Income Benefit.
• Restrictions on Purchase Payments may limit
the benefit.
• Annuitizing the Contract will end the benefit.
|
Standard Benefits (No Additional
Charge)
|
|||
Name of
Benefit
|
Purpose
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
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.
|
None
|
• Available during the Accumulation Phase.
• Not available with the Index Protection
Strategy with DPSC or Index Protection
Strategy with Cap 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 11, Death Benefit.
An example of how deduction of financial adviser
fees impact the death benefit is included in
section 1.
The impact of an Excess Withdrawal on the
death benefit is included in section 10.
|
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, and in the
Excess Withdrawal example in section 10,
Income Benefit.
• Withdrawals reduce the likelihood of lock in.
• Investment restrictions during the Income
Period may limit the benefit.
• Restrictions on Purchase Payments may limit
the benefit.
• Annuitizing the Contract will end the benefit.
|
• YOU SHOULD NOT PURCHASE THIS CONTRACT WITHOUT FIRST OBTAINING THE CURRENT
INCOME BENEFIT
SUPPLEMENT. We publish any changes to the Income Benefit Supplement at least seven
calendar days before they take effect
on our website at www.allianzlife.com/indexincomerates.
|
• Please discuss the Income Benefit’s appropriateness with your Financial Professional and tax adviser.
|
• If Income Payments do not begin by the Index Anniversary upon which the younger Eligible Person reaches
age 100, the Income Benefit ends.
|
• If the Income Benefit ends before Income Payments begin, you will have paid for the benefit without receiving
any of its advantages.
|
• If you have Contract Value in a 3-year or 6-year Term Index Option for which the Income Benefit Date is not
a Term End Date, we will execute a
Performance Lock for that Index Option if it is not locked and then
immediately calculate and begin your
Income Payments, and in such case the Index Option Value will be
subject to the Daily Adjustment. If
you have Index Options with different Term End Dates, there may be no
Income Benefit Date you can select
without application of at least one Daily Adjustment. This means you may
not receive the full
benefit of the Credit that you would have received if you had waited until the Term End Date to
begin Income
Payments.
|
• We use Contract Value to calculate your initial annual maximum Income Payment, and Income Payment increases
under the Level Income payment option. Negative Index
Option performance, 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 decrease the Contract Value, which reduces
the initial annual maximum Income Payment available to
you, and the likelihood you will receive Income Payment
increases if you select the Level Income payment option.
|
Covered Person’s age
(or younger Covered Person’s age for
joint payments)
on the Income Benefit Date
|
Level Income Guarantee
Payment Percentage
|
50
|
2.23
%
|
51
|
2.28
%
|
52
|
2.33
%
|
53
|
2.39
%
|
54
|
2.44
%
|
55
|
2.50
%
|
56
|
2.57
%
|
57
|
2.64
%
|
58
|
2.71
%
|
59
|
2.78
%
|
60
|
2.86
%
|
61
|
2.95
%
|
62
|
3.04
%
|
63
|
3.13
%
|
64
|
3.23
%
|
65
|
3.34
%
|
66
|
3.45
%
|
67
|
3.58
%
|
68
|
3.71
%
|
69
|
3.85
%
|
70
|
4.00
%
|
71
|
4.17
%
|
72
|
4.35
%
|
73
|
4.55
%
|
74
|
4.77
%
|
75
|
5.00
%
|
76
|
5.27
%
|
77
|
5.56
%
|
78
|
5.89
%
|
79
|
6.25
%
|
80
|
6.67
%
|
• For Qualified Contracts: If we calculate a required minimum
distribution (RMD) based on this Contract, after
making all Income Payments for the calendar year we
determine whether this calendar year’s total RMD has been
satisfied by these payments and any Excess Withdrawals.
If the RMD amount for this Contract has not been satisfied,
we send you this remaining amount as one RMD payment by
the end of the calendar year. We consider this payment
to be a withdrawal, but it is not an Excess Withdrawal
and it is not subject to a withdrawal charge.
|
• For annuitization: If on the Annuity Date you are receiving
Income Payments and your Contract Value is positive,
we will convert your Income Payments to Annuity
Payments if you take Annuity Payments under Annuity Option 1
or 3. If you select any other Annuity Option, we will
not convert your Income Payments to Annuity Payments. This
means that if you annuitize your
Contract you may receive less as Annuity Payments than you would have
received as Income Payments. For more information, see section 8, The Annuity Phase – When Annuity Payments
Begin.
|
If you select Level Income, you
receive the greater of….
|
If you select Increasing Income, you
receive…
|
• Level Income Guarantee Payment Percentage multiplied by
total Purchase Payments reduced proportionately for
withdrawals you took, or: (2.71% x $22,000) = $596.20
• Lifetime Income Percentage multiplied by the Contract Value,
or: (5.15% x $25,000) = $1,287.50
|
• Lifetime Income Percentage multiplied by the Contract Value,
or: (4.15% x $25,000) = $1,037.50
|
If you select Level Income, you
receive the greater of….
|
If you select Increasing Income, you
receive…
|
• Level Income Guarantee Payment Percentage multiplied by
total Purchase Payments reduced proportionately for
withdrawals you took, or: (2.71% x $20,000) = $542.00
• Lifetime Income Percentage multiplied by the Contract Value,
or: (5.20% x $22,997.50) = $1,195.87
|
• Lifetime Income Percentage multiplied by the Contract Value,
or: (4.20% x $22,997.50) = $965.90
|
When it increases the initial Income Payment
|
When it does not increase the initial Income Payment
|
• Assume your Contract Value decreases to $50,000 due to
negative performance. You would receive the greater
of:
– Level Income Guarantee Payment Percentage multiplied
by total Purchase Payments reduced proportionately
for
withdrawals you took, or: (4.00% x $100,000) = $4,000.00
– Lifetime Income Percentage multiplied by the Contract
Value, or: (7.70% x $50,000) = $3,850
|
• Assume your Contract Value decreases to $70,000 due to
negative performance. You would receive the greater
of:
– Level Income Guarantee Payment Percentage multiplied
by total Purchase Payments reduced proportionately
for
withdrawals you took, or: (4.00% x $100,000) = $4,000.00
– Lifetime Income Percentage multiplied by the Contract
Value, or: (7.70% x $70,000) = $5,390
|
Excess
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
|
Next anniversary’s
annual maximum
Income Payment
|
Prior to withdrawal
|
$ 100,000
|
$ 90,000
|
$ 105,000
|
$ 4,800
|
$5,000 withdrawal
|
|
– [($5,000 ÷ 100,000)
|
– [($5,000 ÷ 100,000)
|
– [($5,000 ÷ 100,000)
|
|
|
x 90,000]
|
x 105,000]
|
x 4,800]
|
|
– $5,000
|
= - $4,500
|
= - $5,250
|
= - $240
|
|
|
|
|
|
After withdrawal
|
$ 95,000
|
$ 85,500
|
$ 99,750
|
$ 4,560
|
If we increase the Contract Value to equal the death
benefit due to a spousal continuation of the Contract during the last
Income Benefit Year, we also subtract the amount of
this increase from the Contract Value on the next Income Benefit
Anniversary when determining annual payment increases
under the Level Income payment option.
|
|
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
|
During the Income Period:
|
• You cannot make additional Purchase Payments. If your Contract includes the Traditional Death Benefit this means
the Guaranteed Death Benefit Value no longer increases.
|
• Index Precision Strategy, Index Performance Strategy, and Index Guard Strategy are no longer available. This may
limit your Contract’s performance potential and the
Guaranteed Death Benefit Value if your Contract includes the
Maximum Anniversary Value Death Benefit. Income
Payments and Excess Withdrawals also decrease your Contract
Value, which also reduces the likelihood of locking in
investment gains to the Guaranteed Death Benefit Value if
your Contract includes the Maximum Anniversary Value
Death Benefit.
|
• Each Income Payment and any Excess Withdrawal reduces the Guaranteed Death Benefit Value by the percentage of
Contract Value withdrawn (including any withdrawal
charge), which means this value may be reduced by more than
the amount withdrawn. Taking
Excess Withdrawals may also cause your selected death benefit to end
prematurely.
|
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.
|
|
2021
|
2022
|
2023
|
Commission paid
|
$ 118,628,934.67
|
$ 109,135,617.05
|
$53,129,195.74
|
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
|
Eligible Person’s Age (or
younger Eligible Person’s
age for joint Income
Payments)
|
Income Percentages
|
Income Percentage
Increases
|
|||
Level Income
|
Increasing Income
|
||||
Single
Income
Payments
|
Joint Income
Payments
|
Single Income
Payments
|
Joint Income
Payments
|
||
0-50
|
4.00%
|
3.50%
|
3.00%
|
2.50%
|
0.25%
|
51
|
4.10%
|
3.60%
|
3.10%
|
2.60%
|
0.25%
|
52
|
4.20%
|
3.70%
|
3.20%
|
2.70%
|
0.25%
|
53
|
4.30%
|
3.80%
|
3.30%
|
2.80%
|
0.25%
|
54
|
4.40%
|
3.90%
|
3.40%
|
2.90%
|
0.25%
|
55
|
4.50%
|
4.00%
|
3.50%
|
3.00%
|
0.30%
|
56
|
4.60%
|
4.10%
|
3.60%
|
3.10%
|
0.30%
|
57
|
4.70%
|
4.20%
|
3.70%
|
3.20%
|
0.30%
|
58
|
4.80%
|
4.30%
|
3.80%
|
3.30%
|
0.30%
|
59
|
4.90%
|
4.40%
|
3.90%
|
3.40%
|
0.30%
|
60
|
5.00%
|
4.50%
|
4.00%
|
3.50%
|
0.35%
|
61
|
5.10%
|
4.60%
|
4.10%
|
3.60%
|
0.35%
|
62
|
5.20%
|
4.70%
|
4.20%
|
3.70%
|
0.35%
|
63
|
5.30%
|
4.80%
|
4.30%
|
3.80%
|
0.35%
|
64
|
5.40%
|
4.90%
|
4.40%
|
3.90%
|
0.35%
|
65
|
5.50%
|
5.00%
|
4.50%
|
4.00%
|
0.40%
|
66
|
5.60%
|
5.10%
|
4.60%
|
4.10%
|
0.40%
|
67
|
5.70%
|
5.20%
|
4.70%
|
4.20%
|
0.40%
|
68
|
5.80%
|
5.30%
|
4.80%
|
4.30%
|
0.40%
|
69
|
5.90%
|
5.40%
|
4.90%
|
4.40%
|
0.40%
|
70
|
6.00%
|
5.50%
|
5.00%
|
4.50%
|
0.45%
|
71
|
6.10%
|
5.60%
|
5.10%
|
4.60%
|
0.45%
|
72
|
6.20%
|
5.70%
|
5.20%
|
4.70%
|
0.45%
|
73
|
6.30%
|
5.80%
|
5.30%
|
4.80%
|
0.45%
|
74
|
6.40%
|
5.90%
|
5.40%
|
4.90%
|
0.45%
|
75
|
6.50%
|
6.00%
|
5.50%
|
5.00%
|
0.50%
|
76
|
6.60%
|
6.10%
|
5.60%
|
5.10%
|
0.50%
|
77
|
6.70%
|
6.20%
|
5.70%
|
5.20%
|
0.50%
|
78
|
6.80%
|
6.30%
|
5.80%
|
5.30%
|
0.50%
|
79
|
6.90%
|
6.40%
|
5.90%
|
5.40%
|
0.50%
|
80+
|
7.00%
|
6.50%
|
6.00%
|
5.50%
|
0.55%
|
Eligible Person’s Age (or
younger Eligible Person’s
age for joint Income
Payments)
|
Income Percentages
|
Income Percentage
Increases
|
|||
Level Income
|
Increasing Income
|
||||
Single
Income
Payments
|
Joint Income
Payments
|
Single Income
Payments
|
Joint Income
Payments
|
||
0-50
|
4.20%
|
3.70%
|
3.20%
|
2.70%
|
0.25%
|
51
|
4.30%
|
3.80%
|
3.30%
|
2.80%
|
0.25%
|
52
|
4.40%
|
3.90%
|
3.40%
|
2.90%
|
0.25%
|
53
|
4.50%
|
4.00%
|
3.50%
|
3.00%
|
0.25%
|
54
|
4.60%
|
4.10%
|
3.60%
|
3.10%
|
0.25%
|
55
|
4.70%
|
4.20%
|
3.70%
|
3.20%
|
0.30%
|
56
|
4.80%
|
4.30%
|
3.80%
|
3.30%
|
0.30%
|
57
|
4.90%
|
4.40%
|
3.90%
|
3.40%
|
0.30%
|
58
|
5.00%
|
4.50%
|
4.00%
|
3.50%
|
0.30%
|
59
|
5.10%
|
4.60%
|
4.10%
|
3.60%
|
0.30%
|
60
|
5.20%
|
4.70%
|
4.20%
|
3.70%
|
0.35%
|
61
|
5.30%
|
4.80%
|
4.30%
|
3.80%
|
0.35%
|
62
|
5.40%
|
4.90%
|
4.40%
|
3.90%
|
0.35%
|
63
|
5.50%
|
5.00%
|
4.50%
|
4.00%
|
0.35%
|
64
|
5.60%
|
5.10%
|
4.60%
|
4.10%
|
0.35%
|
65
|
5.70%
|
5.20%
|
4.70%
|
4.20%
|
0.40%
|
66
|
5.80%
|
5.30%
|
4.80%
|
4.30%
|
0.40%
|
67
|
5.90%
|
5.40%
|
4.90%
|
4.40%
|
0.40%
|
68
|
6.00%
|
5.50%
|
5.00%
|
4.50%
|
0.40%
|
69
|
6.10%
|
5.60%
|
5.10%
|
4.60%
|
0.40%
|
70
|
6.20%
|
5.70%
|
5.20%
|
4.70%
|
0.45%
|
71
|
6.30%
|
5.80%
|
5.30%
|
4.80%
|
0.45%
|
72
|
6.40%
|
5.90%
|
5.40%
|
4.90%
|
0.45%
|
73
|
6.50%
|
6.00%
|
5.50%
|
5.00%
|
0.45%
|
74
|
6.60%
|
6.10%
|
5.60%
|
5.10%
|
0.45%
|
75
|
6.70%
|
6.20%
|
5.70%
|
5.20%
|
0.50%
|
76
|
6.80%
|
6.30%
|
5.80%
|
5.30%
|
0.50%
|
77
|
6.90%
|
6.40%
|
5.90%
|
5.40%
|
0.50%
|
78
|
7.00%
|
6.50%
|
6.00%
|
5.50%
|
0.50%
|
79
|
7.10%
|
6.60%
|
6.10%
|
5.60%
|
0.50%
|
80+
|
7.20%
|
6.70%
|
6.20%
|
5.70%
|
0.55%
|
Eligible Person’s Age (or
younger Eligible Person’s
age for joint Income
Payments)
|
Income Percentages
|
Income Percentage
Increases
|
|||
Level Income
|
Increasing Income
|
||||
Single
Income
Payments
|
Joint Income
Payments
|
Single Income
Payments
|
Joint Income
Payments
|
||
0-50
|
4.70%
|
4.20%
|
3.70%
|
3.20%
|
0.25%
|
51
|
4.80%
|
4.30%
|
3.80%
|
3.30%
|
0.25%
|
52
|
4.90%
|
4.40%
|
3.90%
|
3.40%
|
0.25%
|
53
|
5.00%
|
4.50%
|
4.00%
|
3.50%
|
0.25%
|
54
|
5.10%
|
4.60%
|
4.10%
|
3.60%
|
0.25%
|
55
|
5.20%
|
4.70%
|
4.20%
|
3.70%
|
0.30%
|
56
|
5.30%
|
4.80%
|
4.30%
|
3.80%
|
0.30%
|
57
|
5.40%
|
4.90%
|
4.40%
|
3.90%
|
0.30%
|
58
|
5.50%
|
5.00%
|
4.50%
|
4.00%
|
0.30%
|
59
|
5.60%
|
5.10%
|
4.60%
|
4.10%
|
0.30%
|
60
|
5.70%
|
5.20%
|
4.70%
|
4.20%
|
0.35%
|
61
|
5.80%
|
5.30%
|
4.80%
|
4.30%
|
0.35%
|
62
|
5.90%
|
5.40%
|
4.90%
|
4.40%
|
0.35%
|
63
|
6.00%
|
5.50%
|
5.00%
|
4.50%
|
0.35%
|
64
|
6.10%
|
5.60%
|
5.10%
|
4.60%
|
0.35%
|
65
|
6.20%
|
5.70%
|
5.20%
|
4.70%
|
0.40%
|
66
|
6.30%
|
5.80%
|
5.30%
|
4.80%
|
0.40%
|
67
|
6.40%
|
5.90%
|
5.40%
|
4.90%
|
0.40%
|
68
|
6.50%
|
6.00%
|
5.50%
|
5.00%
|
0.40%
|
69
|
6.60%
|
6.10%
|
5.60%
|
5.10%
|
0.40%
|
70
|
6.70%
|
6.20%
|
5.70%
|
5.20%
|
0.45%
|
71
|
6.80%
|
6.30%
|
5.80%
|
5.30%
|
0.45%
|
72
|
6.90%
|
6.40%
|
5.90%
|
5.40%
|
0.45%
|
73
|
7.00%
|
6.50%
|
6.00%
|
5.50%
|
0.45%
|
74
|
7.10%
|
6.60%
|
6.10%
|
5.60%
|
0.45%
|
75
|
7.20%
|
6.70%
|
6.20%
|
5.70%
|
0.50%
|
76
|
7.30%
|
6.80%
|
6.30%
|
5.80%
|
0.50%
|
77
|
7.40%
|
6.90%
|
6.40%
|
5.90%
|
0.50%
|
78
|
7.50%
|
7.00%
|
6.50%
|
6.00%
|
0.50%
|
79
|
7.60%
|
7.10%
|
6.60%
|
6.10%
|
0.50%
|
80+
|
7.70%
|
7.20%
|
6.70%
|
6.20%
|
0.55%
|
Eligible Person’s Age (or
younger Eligible Person’s
age for joint Income
Payments)
|
Income Percentages
|
Income Percentage
Increases
|
|||
Level Income
|
Increasing Income
|
||||
Single
Income
Payments
|
Joint Income
Payments
|
Single Income
Payments
|
Joint Income
Payments
|
||
0-50
|
4.00%
|
3.50%
|
3.20%
|
2.70%
|
0.25%
|
51
|
4.10%
|
3.60%
|
3.30%
|
2.80%
|
0.25%
|
52
|
4.20%
|
3.70%
|
3.40%
|
2.90%
|
0.25%
|
53
|
4.30%
|
3.80%
|
3.50%
|
3.00%
|
0.25%
|
54
|
4.40%
|
3.90%
|
3.60%
|
3.10%
|
0.25%
|
55
|
4.50%
|
4.00%
|
3.70%
|
3.20%
|
0.30%
|
56
|
4.60%
|
4.10%
|
3.80%
|
3.30%
|
0.30%
|
57
|
4.70%
|
4.20%
|
3.90%
|
3.40%
|
0.30%
|
58
|
4.80%
|
4.30%
|
4.00%
|
3.50%
|
0.30%
|
59
|
4.90%
|
4.40%
|
4.10%
|
3.60%
|
0.30%
|
60
|
5.00%
|
4.50%
|
4.20%
|
3.70%
|
0.35%
|
61
|
5.10%
|
4.60%
|
4.30%
|
3.80%
|
0.35%
|
62
|
5.20%
|
4.70%
|
4.40%
|
3.90%
|
0.35%
|
63
|
5.30%
|
4.80%
|
4.50%
|
4.00%
|
0.35%
|
64
|
5.40%
|
4.90%
|
4.60%
|
4.10%
|
0.35%
|
65
|
5.50%
|
5.00%
|
4.70%
|
4.20%
|
0.40%
|
66
|
5.60%
|
5.10%
|
4.80%
|
4.30%
|
0.40%
|
67
|
5.70%
|
5.20%
|
4.90%
|
4.40%
|
0.40%
|
68
|
5.80%
|
5.30%
|
5.00%
|
4.50%
|
0.40%
|
69
|
5.90%
|
5.40%
|
5.10%
|
4.60%
|
0.40%
|
70
|
6.00%
|
5.50%
|
5.20%
|
4.70%
|
0.45%
|
71
|
6.10%
|
5.60%
|
5.30%
|
4.80%
|
0.45%
|
72
|
6.20%
|
5.70%
|
5.40%
|
4.90%
|
0.45%
|
73
|
6.30%
|
5.80%
|
5.50%
|
5.00%
|
0.45%
|
74
|
6.40%
|
5.90%
|
5.60%
|
5.10%
|
0.45%
|
75
|
6.50%
|
6.00%
|
5.70%
|
5.20%
|
0.50%
|
76
|
6.60%
|
6.10%
|
5.80%
|
5.30%
|
0.50%
|
77
|
6.70%
|
6.20%
|
5.90%
|
5.40%
|
0.50%
|
78
|
6.80%
|
6.30%
|
6.00%
|
5.50%
|
0.50%
|
79
|
6.90%
|
6.40%
|
6.10%
|
5.60%
|
0.50%
|
80+
|
7.00%
|
6.50%
|
6.20%
|
5.70%
|
0.55%
|
Eligible Person’s Age (or
younger Eligible Person’s
age for joint Income
Payments)
|
Income Percentages
|
Income Percentage
Increases
|
|||
Level Income
|
Increasing Income
|
||||
Single
Income
Payments
|
Joint Income
Payments
|
Single Income
Payments
|
Joint Income
Payments
|
||
0-50
|
4.50%
|
4.00%
|
3.70%
|
3.20%
|
0.25%
|
51
|
4.60%
|
4.10%
|
3.80%
|
3.30%
|
0.25%
|
52
|
4.70%
|
4.20%
|
3.90%
|
3.40%
|
0.25%
|
53
|
4.80%
|
4.30%
|
4.00%
|
3.50%
|
0.25%
|
54
|
4.90%
|
4.40%
|
4.10%
|
3.60%
|
0.25%
|
55
|
5.00%
|
4.50%
|
4.20%
|
3.70%
|
0.30%
|
56
|
5.10%
|
4.60%
|
4.30%
|
3.80%
|
0.30%
|
57
|
5.20%
|
4.70%
|
4.40%
|
3.90%
|
0.30%
|
58
|
5.30%
|
4.80%
|
4.50%
|
4.00%
|
0.30%
|
59
|
5.40%
|
4.90%
|
4.60%
|
4.10%
|
0.30%
|
60
|
5.50%
|
5.00%
|
4.70%
|
4.20%
|
0.35%
|
61
|
5.60%
|
5.10%
|
4.80%
|
4.30%
|
0.35%
|
62
|
5.70%
|
5.20%
|
4.90%
|
4.40%
|
0.35%
|
63
|
5.80%
|
5.30%
|
5.00%
|
4.50%
|
0.35%
|
64
|
5.90%
|
5.40%
|
5.10%
|
4.60%
|
0.35%
|
65
|
6.00%
|
5.50%
|
5.20%
|
4.70%
|
0.40%
|
66
|
6.10%
|
5.60%
|
5.30%
|
4.80%
|
0.40%
|
67
|
6.20%
|
5.70%
|
5.40%
|
4.90%
|
0.40%
|
68
|
6.30%
|
5.80%
|
5.50%
|
5.00%
|
0.40%
|
69
|
6.40%
|
5.90%
|
5.60%
|
5.10%
|
0.40%
|
70
|
6.50%
|
6.00%
|
5.70%
|
5.20%
|
0.45%
|
71
|
6.60%
|
6.10%
|
5.80%
|
5.30%
|
0.45%
|
72
|
6.70%
|
6.20%
|
5.90%
|
5.40%
|
0.45%
|
73
|
6.80%
|
6.30%
|
6.00%
|
5.50%
|
0.45%
|
74
|
6.90%
|
6.40%
|
6.10%
|
5.60%
|
0.45%
|
75
|
7.00%
|
6.50%
|
6.20%
|
5.70%
|
0.50%
|
76
|
7.10%
|
6.60%
|
6.30%
|
5.80%
|
0.50%
|
77
|
7.20%
|
6.70%
|
6.40%
|
5.90%
|
0.50%
|
78
|
7.30%
|
6.80%
|
6.50%
|
6.00%
|
0.50%
|
79
|
7.40%
|
6.90%
|
6.60%
|
6.10%
|
0.50%
|
80+
|
7.50%
|
7.00%
|
6.70%
|
6.20%
|
0.55%
|
Eligible Person’s Age (or
younger Eligible Person’s
age for joint Income
Payments)
|
Income Percentages
|
Income Percentage
Increases
|
|||
Level Income
|
Increasing Income
|
||||
Single
Income
Payments
|
Joint Income
Payments
|
Single Income
Payments
|
Joint Income
Payments
|
||
0-50
|
4.30%
|
3.80%
|
3.50%
|
3.00%
|
0.25%
|
51
|
4.40%
|
3.90%
|
3.60%
|
3.10%
|
0.25%
|
52
|
4.50%
|
4.00%
|
3.70%
|
3.20%
|
0.25%
|
53
|
4.60%
|
4.10%
|
3.80%
|
3.30%
|
0.25%
|
54
|
4.70%
|
4.20%
|
3.90%
|
3.40%
|
0.25%
|
55
|
4.80%
|
4.30%
|
4.00%
|
3.50%
|
0.30%
|
56
|
4.90%
|
4.40%
|
4.10%
|
3.60%
|
0.30%
|
57
|
5.00%
|
4.50%
|
4.20%
|
3.70%
|
0.30%
|
58
|
5.10%
|
4.60%
|
4.30%
|
3.80%
|
0.30%
|
59
|
5.20%
|
4.70%
|
4.40%
|
3.90%
|
0.30%
|
60
|
5.30%
|
4.80%
|
4.50%
|
4.00%
|
0.35%
|
61
|
5.40%
|
4.90%
|
4.60%
|
4.10%
|
0.35%
|
62
|
5.50%
|
5.00%
|
4.70%
|
4.20%
|
0.35%
|
63
|
5.60%
|
5.10%
|
4.80%
|
4.30%
|
0.35%
|
64
|
5.70%
|
5.20%
|
4.90%
|
4.40%
|
0.35%
|
65
|
5.80%
|
5.30%
|
5.00%
|
4.50%
|
0.40%
|
66
|
5.90%
|
5.40%
|
5.10%
|
4.60%
|
0.40%
|
67
|
6.00%
|
5.50%
|
5.20%
|
4.70%
|
0.40%
|
68
|
6.10%
|
5.60%
|
5.30%
|
4.80%
|
0.40%
|
69
|
6.20%
|
5.70%
|
5.40%
|
4.90%
|
0.40%
|
70
|
6.30%
|
5.80%
|
5.50%
|
5.00%
|
0.45%
|
71
|
6.40%
|
5.90%
|
5.60%
|
5.10%
|
0.45%
|
72
|
6.50%
|
6.00%
|
5.70%
|
5.20%
|
0.45%
|
73
|
6.60%
|
6.10%
|
5.80%
|
5.30%
|
0.45%
|
74
|
6.70%
|
6.20%
|
5.90%
|
5.40%
|
0.45%
|
75
|
6.80%
|
6.30%
|
6.00%
|
5.50%
|
0.50%
|
76
|
6.90%
|
6.40%
|
6.10%
|
5.60%
|
0.50%
|
77
|
7.00%
|
6.50%
|
6.20%
|
5.70%
|
0.50%
|
78
|
7.10%
|
6.60%
|
6.30%
|
5.80%
|
0.50%
|
79
|
7.20%
|
6.70%
|
6.40%
|
5.90%
|
0.50%
|
80+
|
7.30%
|
6.80%
|
6.50%
|
6.00%
|
0.55%
|
Eligible Person’s Age (or
younger Eligible Person’s
age for joint Income
Payments)
|
Income Percentages
|
Income Percentage
Increases
|
|||
Level Income
|
Increasing Income
|
||||
Single
Income
Payments
|
Joint Income
Payments
|
Single Income
Payments
|
Joint Income
Payments
|
||
0-50
|
5.00%
|
4.50%
|
3.70%
|
3.20%
|
0.25%
|
51
|
5.10%
|
4.60%
|
3.80%
|
3.30%
|
0.25%
|
52
|
5.20%
|
4.70%
|
3.90%
|
3.40%
|
0.25%
|
53
|
5.30%
|
4.80%
|
4.00%
|
3.50%
|
0.25%
|
54
|
5.40%
|
4.90%
|
4.10%
|
3.60%
|
0.25%
|
55
|
5.50%
|
5.00%
|
4.20%
|
3.70%
|
0.30%
|
56
|
5.60%
|
5.10%
|
4.30%
|
3.80%
|
0.30%
|
57
|
5.70%
|
5.20%
|
4.40%
|
3.90%
|
0.30%
|
58
|
5.80%
|
5.30%
|
4.50%
|
4.00%
|
0.30%
|
59
|
5.90%
|
5.40%
|
4.60%
|
4.10%
|
0.30%
|
60
|
6.00%
|
5.50%
|
4.70%
|
4.20%
|
0.35%
|
61
|
6.10%
|
5.60%
|
4.80%
|
4.30%
|
0.35%
|
62
|
6.20%
|
5.70%
|
4.90%
|
4.40%
|
0.35%
|
63
|
6.30%
|
5.80%
|
5.00%
|
4.50%
|
0.35%
|
64
|
6.40%
|
5.90%
|
5.10%
|
4.60%
|
0.35%
|
65
|
6.50%
|
6.00%
|
5.20%
|
4.70%
|
0.40%
|
66
|
6.60%
|
6.10%
|
5.30%
|
4.80%
|
0.40%
|
67
|
6.70%
|
6.20%
|
5.40%
|
4.90%
|
0.40%
|
68
|
6.80%
|
6.30%
|
5.50%
|
5.00%
|
0.40%
|
69
|
6.90%
|
6.40%
|
5.60%
|
5.10%
|
0.40%
|
70
|
7.00%
|
6.50%
|
5.70%
|
5.20%
|
0.45%
|
71
|
7.10%
|
6.60%
|
5.80%
|
5.30%
|
0.45%
|
72
|
7.20%
|
6.70%
|
5.90%
|
5.40%
|
0.45%
|
73
|
7.30%
|
6.80%
|
6.00%
|
5.50%
|
0.45%
|
74
|
7.40%
|
6.90%
|
6.10%
|
5.60%
|
0.45%
|
75
|
7.50%
|
7.00%
|
6.20%
|
5.70%
|
0.50%
|
76
|
7.60%
|
7.10%
|
6.30%
|
5.80%
|
0.50%
|
77
|
7.70%
|
7.20%
|
6.40%
|
5.90%
|
0.50%
|
78
|
7.80%
|
7.30%
|
6.50%
|
6.00%
|
0.50%
|
79
|
7.90%
|
7.40%
|
6.60%
|
6.10%
|
0.50%
|
80+
|
8.00%
|
7.50%
|
6.70%
|
6.20%
|
0.55%
|
Eligible Person’s Age (or
younger Eligible Person’s
age for joint Income
Payments)
|
Income Percentages
|
Income Percentage
Increases
|
|||
Level Income
|
Increasing Income
|
||||
Single
Income
Payments
|
Joint Income
Payments
|
Single Income
Payments
|
Joint Income
Payments
|
||
0-50
|
4.70%
|
4.20%
|
3.40%
|
2.90%
|
0.25%
|
51
|
4.80%
|
4.30%
|
3.50%
|
3.00%
|
0.25%
|
52
|
4.90%
|
4.40%
|
3.60%
|
3.10%
|
0.25%
|
53
|
5.00%
|
4.50%
|
3.70%
|
3.20%
|
0.25%
|
54
|
5.10%
|
4.60%
|
3.80%
|
3.30%
|
0.25%
|
55
|
5.20%
|
4.70%
|
3.90%
|
3.40%
|
0.30%
|
56
|
5.30%
|
4.80%
|
4.00%
|
3.50%
|
0.30%
|
57
|
5.40%
|
4.90%
|
4.10%
|
3.60%
|
0.30%
|
58
|
5.50%
|
5.00%
|
4.20%
|
3.70%
|
0.30%
|
59
|
5.60%
|
5.10%
|
4.30%
|
3.80%
|
0.30%
|
60
|
5.70%
|
5.20%
|
4.40%
|
3.90%
|
0.35%
|
61
|
5.80%
|
5.30%
|
4.50%
|
4.00%
|
0.35%
|
62
|
5.90%
|
5.40%
|
4.60%
|
4.10%
|
0.35%
|
63
|
6.00%
|
5.50%
|
4.70%
|
4.20%
|
0.35%
|
64
|
6.10%
|
5.60%
|
4.80%
|
4.30%
|
0.35%
|
65
|
6.20%
|
5.70%
|
4.90%
|
4.40%
|
0.40%
|
66
|
6.30%
|
5.80%
|
5.00%
|
4.50%
|
0.40%
|
67
|
6.40%
|
5.90%
|
5.10%
|
4.60%
|
0.40%
|
68
|
6.50%
|
6.00%
|
5.20%
|
4.70%
|
0.40%
|
69
|
6.60%
|
6.10%
|
5.30%
|
4.80%
|
0.40%
|
70
|
6.70%
|
6.20%
|
5.40%
|
4.90%
|
0.45%
|
71
|
6.80%
|
6.30%
|
5.50%
|
5.00%
|
0.45%
|
72
|
6.90%
|
6.40%
|
5.60%
|
5.10%
|
0.45%
|
73
|
7.00%
|
6.50%
|
5.70%
|
5.20%
|
0.45%
|
74
|
7.10%
|
6.60%
|
5.80%
|
5.30%
|
0.45%
|
75
|
7.20%
|
6.70%
|
5.90%
|
5.40%
|
0.50%
|
76
|
7.30%
|
6.80%
|
6.00%
|
5.50%
|
0.50%
|
77
|
7.40%
|
6.90%
|
6.10%
|
5.60%
|
0.50%
|
78
|
7.50%
|
7.00%
|
6.20%
|
5.70%
|
0.50%
|
79
|
7.60%
|
7.10%
|
6.30%
|
5.80%
|
0.50%
|
80+
|
7.70%
|
7.20%
|
6.40%
|
5.90%
|
0.55%
|
Eligible Person’s Age (or
younger Eligible Person’s
age for joint Income
Payments)
|
Income Percentages
|
Income Percentage
Increases
|
|||
Level Income
|
Increasing Income
|
||||
Single
Income
Payments
|
Joint Income
Payments
|
Single Income
Payments
|
Joint Income
Payments
|
||
0-50
|
5.20%
|
4.70%
|
3.90%
|
3.40%
|
0.25%
|
51
|
5.30%
|
4.80%
|
4.00%
|
3.50%
|
0.25%
|
52
|
5.40%
|
4.90%
|
4.10%
|
3.60%
|
0.25%
|
53
|
5.50%
|
5.00%
|
4.20%
|
3.70%
|
0.25%
|
54
|
5.60%
|
5.10%
|
4.30%
|
3.80%
|
0.25%
|
55
|
5.70%
|
5.20%
|
4.40%
|
3.90%
|
0.30%
|
56
|
5.80%
|
5.30%
|
4.50%
|
4.00%
|
0.30%
|
57
|
5.90%
|
5.40%
|
4.60%
|
4.10%
|
0.30%
|
58
|
6.00%
|
5.50%
|
4.70%
|
4.20%
|
0.30%
|
59
|
6.10%
|
5.60%
|
4.80%
|
4.30%
|
0.30%
|
60
|
6.20%
|
5.70%
|
4.90%
|
4.40%
|
0.35%
|
61
|
6.30%
|
5.80%
|
5.00%
|
4.50%
|
0.35%
|
62
|
6.40%
|
5.90%
|
5.10%
|
4.60%
|
0.35%
|
63
|
6.50%
|
6.00%
|
5.20%
|
4.70%
|
0.35%
|
64
|
6.60%
|
6.10%
|
5.30%
|
4.80%
|
0.35%
|
65
|
6.70%
|
6.20%
|
5.40%
|
4.90%
|
0.40%
|
66
|
6.80%
|
6.30%
|
5.50%
|
5.00%
|
0.40%
|
67
|
6.90%
|
6.40%
|
5.60%
|
5.10%
|
0.40%
|
68
|
7.00%
|
6.50%
|
5.70%
|
5.20%
|
0.40%
|
69
|
7.10%
|
6.60%
|
5.80%
|
5.30%
|
0.40%
|
70
|
7.20%
|
6.70%
|
5.90%
|
5.40%
|
0.45%
|
71
|
7.30%
|
6.80%
|
6.00%
|
5.50%
|
0.45%
|
72
|
7.40%
|
6.90%
|
6.10%
|
5.60%
|
0.45%
|
73
|
7.50%
|
7.00%
|
6.20%
|
5.70%
|
0.45%
|
74
|
7.60%
|
7.10%
|
6.30%
|
5.80%
|
0.45%
|
75
|
7.70%
|
7.20%
|
6.40%
|
5.90%
|
0.50%
|
76
|
7.80%
|
7.30%
|
6.50%
|
6.00%
|
0.50%
|
77
|
7.90%
|
7.40%
|
6.60%
|
6.10%
|
0.50%
|
78
|
8.00%
|
7.50%
|
6.70%
|
6.20%
|
0.50%
|
79
|
8.10%
|
7.60%
|
6.80%
|
6.30%
|
0.50%
|
80+
|
8.20%
|
7.70%
|
6.90%
|
6.40%
|
0.55%
|
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:
|
iShares® MSCI Emerging Markets ETF with the Index Protection
Strategy with DPSC, Index Protection Strategy with Cap, Index
Precision Strategy, Index Guard Strategy, and Index Performance
Strategy 1-year Term
|
– 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
available 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 first became
available on the first Index Anniversary that occurred on or after
June 3, 2019.
|
Index Performance Strategy 3-year Term with 20% Buffer available
only to Contracts issued before April 30, 2021
|
– Not available to Contracts issued since April 30, 2012.
– 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 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 in all other states, these first became
available to newly issued Contracts on May 1, 2020.
– For Contracts issued before May 1, 2020, 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 New Hampshire, these first became
available to newly issued Contracts on 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.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
California
|
Eligible Person(s) and
Covered Person(s)
See section 2
|
• We do not remove a person as an Eligible Person(s) or Covered Person(s)
following an assignment, ownership change, or
Beneficiary change.
• If you are the sole individual Owner or a Joint Owner and select joint
Income Payments, you must designate an Owner to be a
Covered Person.
|
|
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.
• If you assign the Contract on or before the Income Benefit Date and as a
result none of the Eligible Person(s) are an Owner
(or Annuitant if the
Owner is a non-individual), Income Payments will not be available, but
the Income Benefit
and its associated rider fee will continue. Your
only recourse is to restore an Eligible Person as an
Owner by assigning or
changing ownership, or to remove the Income Benefit
if you no longer
want to pay the rider fee.
• If you assign the Contract after the Income Benefit Date and a Covered
Person(s) who was previously an Owner no longer has
that position, the
Income Benefit and
any Income Payments may end even if the
Covered Person is
still alive.
|
|
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 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.
|
|
When the Income Benefit
Ends
See section 11
|
The Income Benefit and any Income Payments end based
on the earlier of
the date of death of an individual Owner (or Annuitant
if the Owner is a
non-individual), or last surviving Covered Person.
Upon the death of an
individual Owner (or Annuitant if the Owner is a
non-individual), if the
deceased’s spouse:
• continues the Contract, the Income Benefit and Income Payments end on
the earlier of the date of death of the surviving
spouse, or last surviving
Covered Person.
• elects to receive payment of the death benefit, the Income Benefit ends on
the Business Day we receive his or her Valid Claim.
This means if you
assign the Contract after the Income Benefit Date,
Income Payments
may end even if the Covered Person is still alive.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
Connecticut
|
Eligible Person(s) and
Covered Person(s)
See section 2
|
• We do not remove a person as an Eligible Person(s) or Covered Person(s)
following an assignment, ownership change, or
Beneficiary Change.
• If you are the sole individual Owner or a Joint Owner and select joint
Income Payments, you must designate an Owner to be a
Covered Person.
|
|
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.
• If you assign the Contract on or before the Income Benefit Date and as a
result none of the Eligible Person(s) are an Owner
(or Annuitant if the
Owner is a non-individual), Income Payments will not be available, but
the Income Benefit and its
associated rider fee will continue. Your
only recourse is to restore an Eligible Person as an
Owner by assigning or
changing ownership, or to remove the Income Benefit
if you no longer
want to pay the rider fee.
• If you assign the Contract after the Income Benefit Date and a Covered
Person(s) who was previously an Owner (or Annuitant
if the Owner is a
non-individual) no longer has that position, the Income Benefit and any
Income Payments may end even if the
Covered Person is still alive.
|
|
When the Income Benefit
Ends
See section 10
|
The Income Benefit and any Income Payments end based
on the earlier of
the date of death of an individual Owner (or Annuitant
if the Owner is a
non-individual), or last surviving Covered Person.
Upon the death of an
individual Owner (or Annuitant if the Owner is a
non-individual), if the
deceased’s spouse:
• continues the Contract, the Income Benefit and Income Payments end on
the earlier of the date of death of the surviving
spouse, or last surviving
Covered Person.
• elects to receive payment of the death benefit, the Income Benefit ends on
the Business Day we receive his or her Valid Claim.
This means if you
assign the Contract after the Income Benefit Date,
Income Payments
may end even if the Covered Person is still alive.
|
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
|
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.
|
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.
• For Contracts issued on or after November 18, 2019: We do not accept
additional Purchase Payments on or after the tenth
Contract Anniversary.
|
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.
|
|
Eligible Person(s) and
Covered Person(s)
See section 2
|
We allow civil union partners to be joint Eligible
Persons and joint Covered
Persons. If at any time joint Eligible Persons or
joint Covered Persons are no
longer civil union partners you must send us written
notice. If we receive
notice on or before the Income Benefit Date, joint
Income Payments will not
be available to you. If we receive notice after the
Income Benefit Date, we
will remove one former civil union partner from the
Contract as a Covered
Person and also as an Owner, Joint Owner, Annuitant
and/or Beneficiary.
|
|
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
|
The maximum total Purchase Payments that we can accept
is $1 million. We
must 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.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
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
|
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 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.
|
|
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 13
|
For
Contracts issued before May 1, 2020: We hold all assets that you
allocate to the 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.
|
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.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
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%
|
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:
|
REGULAR MAIL
|
Allianz Life Insurance Company of North America
P.O. Box 59060
Minneapolis MN 55459-0060
|
|
OVERNIGHT, CERTIFIED, OR REGISTERED MAIL
|
Allianz Life Insurance Company of North America
5701 Golden Hills Drive
Minneapolis MN 55416-1297
|
Checks sent to the wrong address for applications or
additional Purchase Payments are forwarded to the 5701
Golden Hills Drive address listed above, which may delay
processing.
|