7
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15
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20
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20
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21
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23
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24
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24
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25
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25
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25
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25
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25
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27
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28
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28
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29
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30
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31
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32
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32
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34
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34
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34
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35
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1.
|
35
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36
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36
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38
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2.
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38
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38
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38
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39
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39
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40
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40
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41
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41
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3.
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42
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42
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42
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43
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44
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44
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4.
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45
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46
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46
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48
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51
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55
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57
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59
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60
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62
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5.
|
64
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65
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65
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67
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6.
|
67
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67
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69
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69
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69
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70
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70
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70
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7.
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70
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71
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71
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72
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8.
|
72
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72
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73
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73
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9.
|
75
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10.
|
78
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78
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80
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81
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81
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84
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86
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87
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88
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89
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89
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89
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89
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11.
|
90
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91
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93
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93
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94
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12.
|
94
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94
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94
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96
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96
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96
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96
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96
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98
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98
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98
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98
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99
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99
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99
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99
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101
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101
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102
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102
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102
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102
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102
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102
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13.
|
103
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103
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103
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103
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103
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105
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105
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105
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105
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14.
|
105
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105
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111
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121
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121
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121
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15.
|
129
|
|
130
|
||
|
130
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130
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131
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131
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132
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132
|
|
134
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||
137
|
||
|
137
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137
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139
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||
140
|
144
|
||
|
144
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144
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144
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144
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144
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145
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|
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145
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|
FEES AND
EXPENSES
|
Prospectus
Location
|
||
Charges
for Early
Withdrawals
|
If you withdraw money within seven years after we establish an Annual Contribution
Amount, a MVA based on changes in interest rates will
apply. A MVA may be positive,
negative, or equal to zero. The maximum negative MVA is -10% (as a percentage of
Contract Value for a full withdrawal, or as a percentage
of the amount withdrawn for a
partial withdrawal). For example, if you take a $100,000
withdrawal during a MVA period,
you could lose up to $10,000 due to a negative MVA.
In addition, if you take a full or partial withdrawal
from an Index Option on a date other than
the Term End Date, a Daily Adjustment will apply to the
Index Option Value available for
withdrawal. The Daily Adjustment also applies if before
the Term End Date you take Income
Payments, you execute a Performance Lock, you annuitize
the Contract, we pay a death
benefit, or we deduct Contract fees, expenses, or
investment advisory fees you authorize
your Financial Professional’s firm to receive from the
Contract. The Daily Adjustment may
be negative depending on the applicable Crediting Method.
You will lose money if the Daily
Adjustment is negative.
•Index Dual Precision Strategy, 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%, 20%, or 30% Buffer; or
-10% Floor, as applicable.
The maximum potential loss from a negative Daily
Adjustment is: -99% for the Index
Dual Precision Strategy, Index Precision Strategy, and
Index Performance Strategy;
and -35% for the Index Guard Strategy.
•Index Protection Strategy with Trigger and Index Protection Strategy with Cap.
Daily Adjustments under these Crediting Methods may be
positive or equal to zero, but
cannot be negative.
|
Fee Tables
4. Valuing Your
Contract
Appendix B –
Daily
Adjustment
|
||
Transaction
Charges
|
Other than negative MVAs and Daily Adjustments that may
apply to withdrawals and other
transactions under the Contract, 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
investment advisory 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)
|
0.95%
|
0.95%
|
||
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 if taken from the
Index Dual Precision Strategy, Index
Precision Strategy, Index Guard Strategy, and
Index Performance Strategy Index Options
could result in substantial losses due to
the application of negative MVAs and
Daily Adjustments.
|
|
||
|
Lowest Annual Cost:
$1,694
|
Highest Annual Cost:
$1,861
|
|
|
|
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 investment advisory 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 investment advisory fees
|
|
|
|
RISKS
|
|
||
Risk of
Loss
|
You can lose money by investing in the Contract,
including loss of principal and previous
earnings.
|
Risk Factors
|
|
RISKS
|
Prospectus
Location
|
||
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.
• 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.
• If, within seven years after we establish an Annual Contribution Amount, you take a full or
partial withdrawal or begin Annuity Payments, or we pay
a death benefit, a MVA will apply.
A MVA is an adjustment based on changes in interest
rates and may be positive,
negative, or equal to zero. A MVA will be negative if
the corporate bond yield on the date
of deduction is higher than the corporate bond yield on
the date that the Annual
Contribution Amount was established. If you take a full
withdrawal or begin Annuity
Payments, or if we pay a death benefit, the maximum
negative MVA is -10% of Contract
Value. On a partial withdrawal, we limit the maximum
negative MVA to -10% of the
amount withdrawn.
• Amounts invested in an Index Option must be held in the Index Option for the full Term
before they can receive a Performance Credit. We apply a
Daily Adjustment if, before the
Term End Date, you take a full or partial withdrawal,
you take Income Payments, you
execute a Performance Lock, you annuitize the Contract,
we pay a death benefit, or we
deduct Contract fees, expenses, or investment advisory
fees that you authorize your
Financial Professional’s firm to receive from the
Contract.
• 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
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
|
Prospectus
Location
|
||
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 typically only allow assets to move into the Index Options on the Index Effective Date
and on subsequent Index Anniversaries as discussed in
section 3, Purchasing the
Contract – Allocation of Purchase Payments and Contract
Value Transfers. However, if
you execute an Early Reallocation, we will move assets
into an Index Option on the
Business Day we receive your Early Reallocation request
in Good Order.
• You can typically transfer Index Option Value only on Term End Dates. However, you can
transfer assets out of an Index Option before the Term
End Date by executing a
Performance Lock as discussed in section 4, Valuing Your
Contract – Performance Locks.
• We do not allow assets to move into an established Index Option until the Term End Date.
If you request to allocate a Purchase Payment into an
established Index Option on an
Index Anniversary that is not a Term End Date, we will
allocate those assets to the same
Index Option with a new Term Start Date.
• 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
Trigger 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 discontinue accepting new
allocations into specific Index Options and
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
|
|
||
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
|
Prospectus
Location
|
||
Investment
Professional
Compensation
|
We do not pay sales commissions in connection with sales
of the Contracts. Rather, you
pay an investment advisory fee to your Financial
Professional. We do not set your
investment advisory fee or receive any part of it.
However, Financial Professionals and their
managers may be eligible for benefits from us or our
wholly-owned subsidiary distributor,
such as production incentive bonuses, insurance benefits,
and non-cash compensation
items. 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.
|
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 Trigger 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 Trigger Rate
|
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 Dual Precision Strategy
1-year Term with 10%, 20%, or
30% Buffer
• For Contracts issued before November
14, 2023, the Index Dual Precision
Strategy is not available.
• For Contracts issued from November
14, 2023, to April 30, 2024, only the 10%
Buffer is available.
• For Contracts issued since May 1, 2024,
the 10%, 20%, and 30% Buffers are
available.
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 3% minimum Trigger Rate
|
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 Trigger Rate
|
Currently Available
Crediting Methods, Term
Lengths, and
Negative Index Performance
Protection
|
Currently
Available Indexes
|
Positive Index Performance
Participation Limit
|
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%, 20%, or
30% Buffer
• For Contracts issued before November
14, 2023, only the 10% Buffer is
available.
• For Contracts issued since November
14, 2023, the 10%, 20%, and 30% Buffers
are available.
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 3% 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
|
• 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% or 20%
Buffer
• For Contracts issued before November
14, 2023, only the 10% Buffer is
available.
• For Contracts issued since November
14, 2023, the 10% and 20% Buffers are
available.
|
• S&P 500® Index
• Russell 2000® Index
|
• 10% minimum Cap
• Can be uncapped
• 100% minimum Participation Rate
|
|
Index Protection Strategy
with Trigger
and
Index Protection Strategy
with Cap
|
Index Dual Precision Strategy,
Index Precision Strategy,
and
Index Performance Strategy
|
Index
Guard
Strategy
|
Daily Adjustment Maximum Potential Loss
|
0%
|
99%
|
35%
|
(as a percentage of Index Option Value, applies for
distributions from an Index Option before any Term
End Date)(1)
|
|
|
|
Administrative Expenses (or contract
maintenance charge)(1)
(per year)
|
$50
|
Base Contract Expenses(2)
(as a percentage of the Charge Base)
|
0.95%
|
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:
|
$2,054
|
$6,344
|
$10,891
|
$23,479
|
(2) If you annuitize your Contract at the end of the applicable time
period.
|
N/A*
|
$6,344
|
$10,891
|
$23,479
|
(3) If you do not surrender your Contract.
|
$2,054
|
$6,344
|
$10,891
|
$23,479
|
|
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 Early
Reallocation or the
optimal time for doing so. We will not warn you if you execute a Performance Lock or Early
Reallocation at a
sub-optimal time. We are not responsible for any losses related to your decision whether or not to
execute a Performance
Lock or Early Reallocation.
|
Investment Advisory Fee
Withdrawal That Is Not
a Taxable Distribution
|
Contract
Value
|
Cash
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 fee deduction
|
$ 100,000
|
$ 97,000
|
$ 90,000
|
$ 105,000
|
$1,500 fee deduction
|
– $1,500
|
– $1,500
|
– $0
|
– $0
|
|
|
|
|
|
After fee deduction
|
$ 99,300
|
$ 96,300
|
$ 90,000
|
$ 105,000
|
|
|
|
|
|
Prior to 2nd fee deduction
|
$ 100,500
|
$ 97,100
|
$ 90,000
|
$ 105,000
|
$1,507 fee deduction
|
– $1,507
|
– $1,507
|
– $0
|
– $0
|
|
|
|
|
|
After fee deduction
|
$ 98,993
|
$ 95,593
|
$ 90,000
|
$ 105,000
|
|
|
|
|
|
Prior to 3rd fee deduction
|
$ 97,800
|
$ 95,200
|
$ 90,000
|
$ 105,000
|
$1,467 fee deduction
|
– $1,467
|
– $1,467
|
– $0
|
– $0
|
|
|
|
|
|
After fee deduction
|
$ 96,333
|
$ 93,733
|
$ 90,000
|
$ 105,000
|
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 greater of Contract Value or
Cash Value.
• If the deceased Owner was not a Determining Life, the
Traditional Death Benefit or Maximum Anniversary Value Death
Benefit are not available and the Beneficiary(ies) receives the
greater of Contract Value or Cash Value.
|
• The Beneficiary becomes the Payee. If we are still required to
make Annuity Payments under the selected Annuity Option, the
Beneficiary also becomes the new Owner.
• If the deceased was not an Annuitant, Annuity Payments to the
Payee continue. No death benefit is payable.
• If the deceased was the only surviving Annuitant, Annuity
Payments end or continue as follows.
– Annuity Option A or C, payments end when the
guaranteed period ends.
– Annuity Option B, F, or G, payments end. If Income
Payments were converted to Annuity Payments under
Annuity Option B or F, we will also pay any remaining
value to the named Beneficiary(ies).
– For more information on the Annuity Options, please see
section 8.
• If the deceased was an Annuitant and there is a surviving joint
Annuitant, Annuity Payments to the Payee continue during the
lifetime of the surviving joint Annuitant. No death benefit is
payable.
• For a Qualified Contract, the Annuity Payments must end ten
years after the Owner’s death.
|
• FOR JOINTLY OWNED CONTRACTS: The sole primary
Beneficiary is the surviving Joint Owner regardless of
any other named primary Beneficiaries. If both Joint Owners
die within 120 hours of each other, 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.
|
• NAMING AN ESTATE AS A BENEFICIARY: If an estate is the
Beneficiary, the estate must be the sole primary
Beneficiary, unless the Spouse is the sole primary
Beneficiary. If the Spouse is the sole primary Beneficiary, then an
estate can be a contingent beneficiary.
|
• 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, replacing Joint Owners with a
Trust, or adding a Joint Owner if that person is a spouse within the
meaning of federal tax law of the existing
Owner.
|
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.
|
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,
• we transfer assets held in the Variable Option on an interim
basis to your selected Index Option(s) according to
allocation
instructions,
• there is negative Fund performance, or
• we deduct Contract fees, expenses, and investment advisory
fees that you authorize your Financial Professional’s firm
to
receive from the Contract
|
Contract fees and
expenses we deduct from the Variable Option include the product fee, rider fee, and contract
maintenance charge as described in section
6, Expenses. Investment
advisory fees you authorize your Financial
Professional’s firm to receive from the
Contract are described in section 1, The Contract.
|
Index Option Values increase when….
|
Index Option Values decrease when….
|
• you add assets to an Index Option by Purchase Payment,
make allocation instruction changes that transfer Contract
Value, or request an Early Reallocation into the Index
Option,
• we transfer assets held in the Variable Option on an interim
basis to your selected Index Option according to allocation
instructions, or
• you receive a positive Performance Credit or Daily Adjustment
|
• you take assets out of an Index Option by
withdrawal (including any MVA), make allocation instruction
changes that transfer Contract Value, or request an Early
Reallocation out of the Index Option,
• you receive a negative Performance Credit or Daily
Adjustment, or
• we deduct Contract fees, expenses, and investment advisory
fees that you authorize your Financial Professional’s firm
to
receive from the Contract
|
Contract fees and
expenses we deduct from the Index Options include the product fee, rider fee, and contract maintenance
charge as described in section 6, Expenses.
Investment advisory fees you authorize your Financial Professional’s firm to
receive from the Contract are described in
section 1, The Contract.
|
• The Index Dual Precision Strategy, 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; -70% with a
30% 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 an Index Performance Strategy Index Option is “uncapped” for one Term (i.e., we do not declare a Cap for
that Term) it does not mean that we will not
declare a Cap for it on future Term Start Dates. On the next Term
Start Date we can declare a Cap for the next Term, or declare
it to be uncapped.
|
What is the asset protection?
|
|
Index Protection
Strategy with Trigger
|
• Most protection.
• If the Index loses value, the Performance Credit is zero. You do not receive a negative Performance
Credit.
|
Index Protection
Strategy with Cap
|
• Most protection.
• If the Index loses value, the Performance Credit is zero. You do not receive a negative Performance
Credit.
|
Index Dual Precision
Strategy
|
• Less protection than the Index Protection Strategy with Trigger, Index Protection Strategy with Cap,
and Index Guard Strategy. Protection is equal to or greater
than what is available with the Index
Precision Strategy depending on the Index Option. Offers
the same protection levels as the Index
Performance Strategy.
• Buffer absorbs 10%, 20%, or 30% of loss, but you receive a negative Performance Credit for losses
greater than the Buffer.
• Potential for large losses in any Term.
• More sensitive to large negative market movements because small or moderate negative market
movements within the applicable 10%, 20%, or 30% Buffer
result in a positive Performance Credit. In
a period of extreme negative market performance, the risk
of loss is greater with the Index Dual
Precision Strategy than with the Index Guard Strategy.
|
Index Precision Strategy
|
• Less protection than the Index Protection Strategy with Trigger, Index Protection Strategy with Cap,
and Index Guard Strategy. Protection may be equal to or
less than what is available with the Index
Dual Precision Strategy and 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 Trigger and Index Protection Strategy with
Cap, but more than Index Dual Precision Strategy, 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 Dual Precision Strategy,
Index Precision Strategy, and Index
Performance 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 Trigger, Index Protection Strategy with Cap,
and Index Guard Strategy. Index Options with a 10% Buffer
provide the same protection as the Index
Precision Strategy. The 20% and 30% Buffers provide more
protection than what is available with the
Index Precision Strategy. Offers the same protection levels
as the Index Dual Precision Strategy.
• Buffer absorbs 10%, 20%, or 30% of loss depending on the Index Option you select, but you receive
a negative Performance Credit for losses greater than the
Buffer.
• Potential for large losses in any Term.
• More sensitive to large negative market movements because small or moderate negative market
movements are absorbed by the Buffer. In 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 Trigger
|
• Growth opportunity limited by the Trigger Rates.
• 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 Performance Credits
that are greater than the Index Return while also providing
complete protection from any Index losses.
• These Trigger Rates will generally be less than Caps, and Index Precision Strategy's Trigger Rates.
Growth opportunity may be more or less than the Index Dual
Precision Strategy depending on Trigger
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 Performance
Credits while also providing complete protection from any
Index losses.
• Generally more growth opportunity than the Index Protection Strategy with Trigger, but less than the
Index Precision Strategy, Index Guard Strategy, and Index
Performance Strategy. Growth opportunity
may be more or less than the Index Dual Precision Strategy
depending on Caps and Trigger Rates.
• Caps will generally be greater than the Trigger Rates for Index Protection Strategy with Trigger, but
less than Index Precision Strategy's Trigger Rates, and
less than the Caps for the Index Guard
Strategy and Index Performance Strategy. These Caps may be
greater or less than Index Dual
Precision Strategy's Trigger Rates.
|
Index Dual Precision
Strategy
|
• Growth opportunity limited by the Trigger Rates.
• May perform best in periods of small or moderate negative market movements as it provides a
positive Performance Credit in these environments while
other Crediting Methods do not.
• Generally less growth opportunity than the Index Precision Strategy and Index Performance Strategy.
• Growth opportunity may be more or less than the Index Protection Strategy with Trigger, Index
Protection Strategy with Cap, and Index Guard Strategy
depending on Trigger Rates and Caps.
|
Index Precision Strategy
|
• Growth opportunity limited by the Trigger Rates.
• May perform best in periods of small positive market movements.
• Generally more growth opportunity than the Index Protection Strategy with Trigger, Index Protection
Strategy with Cap, and Index Dual Precision Strategy.
However, less growth opportunity than the
Index Dual Precision Strategy during periods of small or
moderate negative market movements.
• Growth opportunity may be more or less than the Index Guard Strategy or Index Performance
Strategy depending on Trigger 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 Dual Precision Strategy,
Index Precision Strategy, or Index Performance Strategy
depending on Trigger Rates and Caps.
|
What is the growth opportunity?
|
|
Index Performance
Strategy
|
• Growth opportunity limited by the Caps and/or Participation Rates. If we do not declare a Cap for an
Index Option, there is
no maximum limit on the positive Index Return for that Index Option. In
addition, you can
receive more than the positive Index Return if the Participation Rate applies
and is greater than its
100% minimum. However, the Participation Rate cannot boost Index
Returns beyond a
declared Cap.
• May perform best in a strong market.
• 1-year Term with 10% Buffer Index Options, 3-year Term with 10% or 20% Buffer Index Options, and
6-year Term with 10% or 20% Buffer Index Options have the
most growth opportunity.
• Growth opportunity for the 1-year Term with 20% or 30% Buffer may be less than the Index Dual
Precision Strategy, Index Precision Strategy, and Index
Guard Strategy depending on Trigger Rates
and Caps.
|
What can change within a Crediting Method?
|
|
Index Protection
Strategy with Trigger
|
• Renewal and Early Reallocation Trigger Rates for existing Contracts can change on each Term Start
Date.
– 1-year Term has a 0.50% minimum Trigger Rate.
|
Index Protection
Strategy with Cap
|
• Renewal and Early Reallocation Caps for existing Contracts can change on each Term Start Date.
– 1-year Term has a 0.50% minimum Cap.
|
Index Dual Precision
Strategy
|
• Renewal and Early Reallocation Trigger Rates for existing Contracts can change on each Term Start
Date.
– 1-year Term with a 10%, 20%, or 30% Buffer has a 3% minimum Trigger Rate.
• The 10%, 20%, or 30% Buffers for the currently available Index Options cannot change. However, if
we add a new Index Option to your Contract after the Issue
Date, we establish the Buffer for it on the
date we add the Index Option to your Contract. The minimum
Buffer is 5% for a new Index Option.
|
Index Precision Strategy
|
• Renewal and Early Reallocation Trigger Rates for existing Contracts can change on each Term Start
Date.
– 1-year Term has a 3% minimum Trigger Rate.
• The 10% Buffers for the currently available Index Options cannot change. However, if we add a new
Index Option to your Contract after the Issue Date, we
establish the Buffer for it on the date we add
the Index Option to your Contract. The minimum Buffer is 5%
for a new Index Option.
|
Index Guard Strategy
|
• Renewal and Early Reallocation 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 and Early Reallocation Caps and/or Participation Rates for existing Contracts can change on
each Term Start Date.
– 1-year Term with 10%, 20%, or 30% Buffer has a 3% minimum Cap.
– 3-year Term with 10% or 20% Buffer has a 5% minimum Cap, and 100% minimum Participation Rate.
– 6-year Term with 10% or 20% Buffer has a 10% minimum Cap, and 100% minimum Participation
Rate.
• The 10%, 20%, and 30% Buffers for the currently available Index Options cannot change. However, if
we add a new Index Option to your Contract after the Issue
Date, we establish the Buffer for it on the
date we add the Index Option to your Contract. The minimum
Buffer is 5% for a new Index Option.
|
• For any Index Option with the Index Dual Precision Strategy, 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.
|
• Trigger Rates, Caps, and Participation Rates as set by us from time-to-time may vary substantially based on market
conditions. However, in extreme market environments, it is possible that all Trigger Rates, Caps, and Participation
Rates will be reduced to
their respective minimums of 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 Trigger
Rates, Caps, and/or Participation Rates by cancelling your
Contract and purchasing a new Contract.
|
• If the initial Trigger Rates, Caps, and/or Participation Rates available on the Index Effective Date are not acceptable
you have the following options.
|
– Cancel your Contract if you are still within the free look period.
|
– Request to extend your Index Effective Date if you have not reached your first Quarterly Contract Anniversary.
|
– If the free look period has expired, request a full withdrawal and receive the Cash
Value. This withdrawal is subject to
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 and MVA do not apply.
If this occurs after the
Index Effective Date, you are
subject to the Daily Adjustment and MVA.
|
• Trigger Rates, Caps, and Participation Rates can be different from Index Option to Index Option. For example,
Caps for the Index Performance Strategy 1-year Terms can be
different between the S&P 500® Index and the
Nasdaq-100® Index; and
Caps for the S&P 500® Index can be different between 1-year, 3-year, and 6-year Terms on
the Index Performance Strategy, and between the 1-year
Terms for the Index Guard Strategy and Index Performance
Strategy. Initial, renewal, and Early Reallocation rates may also be different from Contract-to-Contract. For
example, assume that on August 3, 2023 we set Caps for the
Index Performance Strategy 1-year Term with 10% Buffer
using the S&P 500® Index as
follows:
|
– 13% initial rate and 12% Early Reallocation rate for new Contracts issued in 2023,
|
– 14% renewal rate and 14% Early Reallocation rate for existing Contracts issued in 2022, and
|
– 12% renewal rate and 13% Early Reallocation rate for existing Contracts issued in 2021.
|
|
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 and deductions
we make for Contract fees, expenses, and
investment advisory fees that you authorize your Financial
Professional’s firm to receive from the
Contract do not receive a Performance Credit on the Term End Date.
However, the remaining amount in the Index Options is
eligible for a Performance Credit on the Term End Date.
|
• You cannot specify from which 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.
|
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 Trigger
1-year Term
|
Performance Credit is zero.
|
Performance Credit is equal to the Trigger Rate set
on the Term Start Date.
|
Index Protection
Strategy with Cap
1-year Term
|
Performance Credit is zero.
|
Performance 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 Performance Credit is zero.
• 4%, the Performance Credit is 4%.
• 12%, the Performance Credit is 5%.
|
Index Dual Precision
Strategy 1-year Term
• For Contracts issued
before November 14,
2023, the Index Dual
Precision Strategy is not
available.
• For Contracts issued
from November 14, 2023,
to April 30, 2024, only
the 10% Buffer is
available.
• For Contracts issued
since May 1, 2024, the
10%, 20%, and 30%
Buffers are available.
|
Performance Credit is equal to the Trigger Rate if the
negative Index Return is less than or equal to the
10%, 20%, or 30% Buffer. However, if the negative
Index Return is greater than the 10%, 20%, or 30%
Buffer you receive a Performance Credit equal to the
negative Index Return in excess of the applicable
Buffer.
Assume you select a 1-year Term Index Option with
10% Buffer. If the Index Return for the year is…
• -8%, the Performance Credit is equal to the Trigger
Rate set on the Term Start Date.
• -12%, the Performance Credit is -2%.
Instead assume you
select a 1-year Term Index
Option with 20% Buffer, and the Index Return for
the Term is…
• -19%, the Performance Credit is equal to the
Trigger Rate set on the Term Start Date.
• -24%, the Performance Credit is -4%.
Instead assume you
select a 1-year Term Index
Option with 30% Buffer, and the Index Return for
the Term is…
• -29%, the Performance Credit is equal to the
Trigger Rate set on the Term Start Date.
• -36%, the Performance Credit is -6%.
|
Performance Credit is equal to the Trigger Rate set
on the Term Start Date.
|
Index Precision
Strategy 1-year Term
|
Performance Credit is equal to the negative Index
Return in excess of the 10% Buffer.
If the Index Return is…
• -8%, the Performance Credit is zero.
• -12%, the Performance Credit is -2%.
|
Performance Credit is equal to the Trigger Rate set
on the Term Start Date.
|
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 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
• For Contracts issued
before November 14,
2023, only the 10%
Buffer is available.
• For Contracts issued
since November 14,
2023, the 10%, 20%, and
30% Buffers are
available.
|
Performance Credit is equal to the negative Index
Return in excess of the 10%, 20%, or 30% Buffer.
Assume you select a 1-year Term Index Option with
10% Buffer. If the Index Return for the year is…
• -8%, the Performance Credit is zero.
• -12%, the Performance Credit is -2%.
Instead assume you
select a 1-year Term Index
Option with 20% Buffer, and the Index Return for
the Term is…
• -19%, the Performance Credit is 0%.
• -24%, the Performance Credit is -4%.
Instead assume you
select a 1-year Term Index
Option with 30% Buffer, and the Index Return for
the Term is…
• -29%, the Performance Credit is 0%.
• -36%, the Performance Credit is -6%.
|
Performance Credit is equal to the Index Return up
to any Cap set on the Term Start Date.
Assume the Cap for the 1-year Term is 8%. If the
Index Return for the year is…
• 0%, the Performance Credit is zero.
• 6%, the Performance Credit is 6%.
• 12%, the Performance Credit is 8%. If instead the
1-year Term is uncapped,
the Performance
Credit is 12%.
|
Index Performance
Strategy 3-year Term
|
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%.
|
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 6-year Term
• For Contracts issued
before November 14,
2023, only the 10%
Buffer is available.
• For Contracts issued
since November 14,
2023, the 10% and 20%
Buffers are available.
|
Performance Credit is equal to the negative Index
Return in excess of the 10% or 20% Buffer.
If the Index Return for the Term is…
• -19%, the Performance Credit is -9%.
• -24%, the Performance Credit is -14%.
Instead assume you
select a 6-year Term Index
Option with 20% Buffer, and the Index Return for
the Term is…
• -19%, the Performance Credit is 0%.
• -24%, the Performance Credit is -4%.
|
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 Early
Reallocation or the
optimal time for doing so. We will not warn you if you execute a Performance Lock or Early
Reallocation at a
sub-optimal time. We are not responsible for any losses related to your decision whether or not to
execute a Performance
Lock or Early Reallocation.
|
In general, if corporate bond yields
at the time of the withdrawal are…
|
then the
MVA will be…
|
Less than they were when the
Annual Contribution Amount was established
|
Positive
|
Equal to what they were when the
Annual Contribution Amount was established
|
Zero
|
Greater than what they were when the
Annual Contribution Amount was established
|
Negative
|
Calculating a MVA on a partial
withdrawal
|
Example
|
|
For purposes of calculating a MVA on a partial withdrawal,
we
withdraw Purchase Payments on a “first-in-first-out” (FIFO)
basis
as follows.
|
You make an initial Purchase Payment on a Non-Qualified
Contract of $55,000 on the Index Effective Date (your 1st
Annual Contribution Amount), and make another Purchase
Payment on the first Index Anniversary of $45,000 (your 2nd
Annual Contribution Amount), for a total Annual Contribution
Amount of $100,000. The yield on the Bloomberg US Long
Corporate Bond Index on the Index Effective Date is 2.00%,
and is 3.00% on the first Index Anniversary (these are “A”
in
the MVA factor formula).
On the third Index Anniversary, your Contract Value is
$110,000, the yield on the Bloomberg US Long Corporate
Bond Index is 2.50% (this is “B” in the MVA factor formula),
Income Payment have not yet begun, and you request a
$70,000 withdrawal. The time remaining in each Annual
Contribution Amount is 4 years for the 1st amount, and 5 years
for the 2nd amount (“t” in our MVA factor formula). We withdraw
money and compute the MVA as follows.
|
|
1. First, we withdraw from any Variable Account Value in the AZL
Government Money Market Fund. This withdrawal is not subject
to a MVA, but it does reduce the Purchase Payments we apply
to the next Annual Contribution Amount dollar for dollar.
|
1. Variable Account Value in the AZL
Government Money
Market Fund. You made no Purchase Payments during the
third Index Year, so there is no Variable Account Value in the
fund and this does not apply.
|
|
2. Next, we withdraw from any Annual Contribution Amounts that
are beyond the seven Index Year MVA period. This withdrawal
is not subject to a MVA and it reduces your Annual
Contribution
Amounts dollar for dollar.
|
2. Annual Contribution Amounts beyond the
MVA period.
Both Annual Contribution Amounts are still within the MVA
period, so this does not apply.
|
|
3. Amounts available as a MVA-Free Withdrawal. This includes
partial withdrawals you take during the Accumulation Phase
and before the Income Period under the free withdrawal
privilege, Income Payments, and RMD payments under our
minimum distribution program. MVA-Free Withdrawals are not
subject to a MVA and do not reduce your Annual Contribution
Amounts.
|
3. Amounts available as a MVA-Free
Withdrawal. You did
not take any other withdrawals this Index Year, so the entire
free withdrawal privilege (10% of your total Annual
Contribution Amounts, or $10,000) is available to you
without incurring a MVA. This withdrawal will not reduce
your Annual Contribution Amounts.
|
|
4. Next, on a FIFO basis, we withdraw from any Annual
Contribution Amounts within your Contract’s seven Index Year
MVA period and assess a MVA. The MVA for an Annual
Contribution Amount is equal to the amount of Purchase
Payment withdrawn from that Annual Contribution Amount
multiplied by the MVA factor. We determine your total MVA by
multiplying each Annual Contribution Amount by its
applicable
MVA and then totaling the MVAs. These withdrawals reduce
your Annual Contribution Amounts.
|
4. Annual Contribution Amounts within the
MVA period on
a FIFO basis. The total amount we withdraw from the 1st
Annual Contribution Amount is $55,000, which is subject to
a -$1,065.34 MVA, and you receive $53,934.66. We
determine this amount as follows:
The MVA factor is [(A ÷ B)t – 1] =
[(1 + 2%) ÷ (1 + 2.50%)]4 – 1] = -1.94%.
(amount withdrawn) x (1 + MVA factor) = the amount
you receive, or: $55,000 x (1 + -1.94%) = $53,934.66
Because the MVA is positive the total amount we withdraw
from the 2nd Annual Contribution Amount is $5,919.55, and
you receive $6,065.34. We determine this amount as
follows:
The MVA factor is [(A ÷ B)t – 1] =
[(1 + 3%) ÷ (1 + 2.50%)]5 – 1] = 2.46%.
(amount withdrawn) x (1 + MVA factor) = the amount
you receive, or: $5,919.55 x (1 + 2.46%) = $6,065.34
|
Calculating a MVA on a partial
withdrawal
|
Example
|
|
5. Finally, we withdraw from any Contract earnings. This
withdrawal is not subject to a MVA and does not reduce your
Annual Contribution Amounts.
|
5. Contract earnings. We already withdrew your requested
amount, so this does not apply.
In total we withdrew $70,919.55 from your
Contract, of
which you received $70,000 due to the partial
MVA of
-$919.55 (which is less than the 10% limit on the amount
withdrawn). We also reduced the 1st Annual
Contribution Amount from $55,000 to $0, and
your 2nd
Annual Contribution Amount from $45,000 to
$39,080.45
($45,000 - $5,919.55).
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 MVA against Annual
Contribution Amounts that are still within their MVA period.
On a full withdrawal, your total Annual
Contribution Amounts may be greater than
your Contract Value because the following reduce your Contract
Value, but do not reduce your Annual
Contribution Amounts:
|
– prior MVA-Free Withdrawals,
|
– deductions we make for Contract fees, expenses, or investment advisory fees you authorize your Financial
Professional’s firm to receive from the
Contract, and/or
|
– poor performance.
|
• Withdrawals 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.
|
• For tax purposes, and in most instances, withdrawals from Non-Qualified Contracts are considered to come from
earnings first, not Purchase Payments.
|
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)
|
0.25%
|
Rider Fee for the Income Benefit
|
0.70%
|
Total Base Contract Expenses
|
0.95%
|
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, or we deduct
Contract fees, expenses, and investment
advisory fees that you authorize your
Financial Professional’s firm to receive from
the Contract, we decrease the Charge Base
by the percentage of Contract Value
withdrawn (including any MVA). All
withdrawals you take reduce the Charge
Base, even MVA-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
Performance Credit if this is also the Term End
Date), any additional Purchase Payment, any
partial withdrawals you take (including any MVA),
and deductions we make for Contract fees and
expenses (including deduction of the accrued
daily product and rider
fees for the prior
quarter) and any investment advisory fees that
you authorize your Financial Professional’s firm
to receive from the Contract. All partial
withdrawals you take reduce the Charge Base,
even MVA-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 MVA) 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).
|
|
Index Protection Strategy
with Trigger
and
Index Protection Strategy
with Cap
|
Index Dual Precision Strategy,
Index Precision Strategy,
and
Index Performance Strategy
|
Index
Guard
Strategy
|
Daily Adjustment Maximum Potential Loss
|
0%
|
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 MVA (which can be negative), 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).
|
• Joint Owners: We send each Joint Owner a check for half of the withdrawal
amount and we tax report that 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.
|
• You should consult a tax adviser before purchasing a Qualified Contract that is subject to RMD payments.
|
• The minimum distribution program is not available if you have a Qualified Contract purchased through a
qualified plan.
|
• If you do not choose an Annuity Option before the Annuity Date, we make Annuity Payments to the Payee
under Annuity Option C with ten years of
guaranteed monthly payments.
|
• For Owners younger than age 59 1∕2, Annuity
Payments may be subject to a 10% additional federal tax.
|
• For a Qualified Contract, the Annuity Payments must end ten years after the Owner’s death.
|
• If Annuity Payments would be less than $100, we reserve the right to require you to take a full withdrawal and
your Contract will then terminate. We do not
apply the MVA on this full withdrawal.
|
• If on the maximum Annuity Date your Contract Value is greater than zero, you must annuitize the Contract.
We notify you of your available options in writing 60 days in
advance. If on your maximum Annuity Date you have
not selected an Annuity
Option and Income Payments have not begun, we make payments under Annuity Option
C 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 B or F as follows.
|
For single Income Payments, if you choose Annuity Option B
(Life) the sole Covered Person becomes the sole
Annuitant and your Annuity Payments are equal to the greater
of:
|
– annual Annuity Payments under Annuity Option B based on the greater of Contract Value or Cash Value; or
|
– the current annual maximum Income Payment available to you.
|
For joint Income Payments, if you choose Annuity Option F
(Joint and Survivor) the joint Covered Persons become the
joint Annuitants and your Annuity Payments are equal to the
greater of:
|
– annual Annuity Payments under Annuity Option F based on the greater of Contract Value or Cash Value; or
|
– the current annual maximum Income Payment available to you.
|
If you select Annuity Option A, C, or G, we do 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 payment option, your Annuity Payments will increase on each Index
Anniversary if your selected Index Options receive a
Performance Credit, or by the Daily Adjustment if you execute
a Performance Lock, 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
Annual Contribution Amounts each Index Year
without incurring a MVA.
|
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.
|
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.
|
Investment
Advisory
Fees
|
We designed the Contract for persons who are
receiving ongoing investment advice from a
Financial Professional. You can instruct us to
automatically withdraw investment advisory fees
from your Contract to pay your Financial
Professional’s firm.
|
None
|
• Only available during the Accumulation Phase.
• Investment advisory fees are in addition to the
Contract’s fees and expenses.
• Program withdrawals may be subject to
negative Daily Adjustments.
• If you and your Financial Professional do not
agree to our requirements we will not pay
investment advisory fees from this Contract to
your Financial Professional’s firm.
• Our requirements limit investment advisory fee
withdrawals to 1.5% of Contract Value each
Contract Year, require the fees to be solely for
advisory services provided with respect to the
Contract, and require the Contract to be the
sole source of payment.
• See section 1 for an example of how deduction
of investment advisory fees that meet our
requirements impact the Contract.
|
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.
Includes the Income Multiplier Benefit for no
additional charge that can increase income to
help pay for needed care.
Section 10 includes examples of the Lifetime
Income Percentage Calculation, Excess
Withdrawals, Income Payment increases, and
the Income Multiplier Benefit.
|
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 from the Contract.
• 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.
• The Income Multiplier Benefit is not available
in all states as indicated in Appendix F.
• Must establish eligibility to exercise the Income
Multiplier Benefit (e.g., that you are confined
for care or unable to perform two activities for
daily living) and must re-establish eligibility
each year thereafter.
• 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 greatest of
the Contract Value, Cash 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 investment
advisory 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 and negative MVAs, may
significantly reduce the benefit as indicated in
section 1, Investment Advisory 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 and
Early
Reallocations
|
Performance Lock allows you to capture the
current Index Option Value during the Term for
an Index Option. Performance Lock can help
eliminate doubt about future Index performance
and possibly limit the impact of negative
performance. Early Reallocation allows you to
transfer out of a locked Index Option on days
other than an Index Anniversary, or a Term End
Date.
A Performance Lock example is included in
section 4, Valuing Your Contract — Performance
Locks and Early Reallocations.
|
None
|
• Available during the Accumulation Phase. Only
available during the Annuity Phase if you
select Increasing Income and you annuitize
your annual maximum Income Payment.
• 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.
• Early Reallocation requests are not accepted
within 14 calendar days before an Index
Anniversary, and are limited to two Early
Reallocation requests each Index Year.
• Deductions (e.g. withdrawals, fees) decrease
the locked Index Option Value.
• Cannot transfer locked Index Option Value until
the next Index Anniversary that occurs on or
immediately after the Lock Date unless you
execute an Early Reallocation.
• We will not provide advice or notify you
regarding whether you should execute a
Performance Lock or Early Reallocation or
the optimal time for doing so.
• We will not warn you if you execute a
Performance Lock or Early Reallocation at
a sub-optimal time.
• We are not responsible for any losses
related to your decision whether or not to
execute a Performance Lock or Early
Reallocation.
• Early Reallocations are not available to
Contracts issued before May 1, 2023, as
detailed in Appendix F.
|
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 greatest of
the Contract Value, Cash 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 investment
advisory 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 and negative MVA, may
significantly reduce the benefit as indicated in
section 1, Investment Advisory 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/RILAincomeadvrates.
|
• 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 an 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
Performance 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, and deductions
we make for Contract fees, expenses, and investment advisory
fees that you authorize your Financial Professional’s
firm to receive from the Contract 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 MVA.
|
• 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 B
or F. 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
|
Cash
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
|
$ 97,000
|
$ 90,000
|
$ 105,000
|
$ 4,800
|
$1,500 withdrawal
|
– $1,500
|
– $1,500
|
– [($1,500 ÷ 100,000)
|
– [($1,500 ÷ 100,000)
|
– [($1,500 ÷ 100,000)
|
|
|
|
x 90,000)] = - $1,350
|
x 105,000)] = - $1,575
|
x 4,800)] = - $72
|
-$100 MVA
|
– $100
|
|
– [($100 ÷ 100,000)
|
– [($100 ÷ 100,000)
|
– [($100 ÷ 100,000)
|
|
|
|
x 90,000)] = - $90
|
x 105,000)] = - $105
|
x 4,800)] = - $5
|
|
– $1,600
|
– $1,500
|
= - $1,440
|
= - $1,680
|
= - $77
|
|
|
|
|
|
|
After withdrawal
|
$ 98,400
|
$ 95,500
|
$ 88,560
|
$ 103,320
|
$ 4,723
|
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.
|
If we receive notice of death of a Covered Person during the
Income Period we will suspend Income Payments and the
Income Benefit will end as described above. However, if a
federally recognized spouse who is also a joint Covered
Person continues this Contract, we will resume Income
Payments and add any Income Payments that we would have
paid between the time we suspended Income Payments and when
they resume to future Income Payments.
|
|
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 Dual Precision Strategy, 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 MVA), 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.
|
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%
|
3.20%
|
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
|
4.70%
|
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
|
5.00%
|
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
|
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%
|
Crediting Method / Index Options
|
Availability Restrictions:
|
– Index Protection Strategy with Trigger was previously called the
Index Protection Strategy with DPSC
– Trigger Rate for the Index Protection Strategy with Trigger was
previously called the Declared Protection Strategy Credit (DPSC)
– Performance Credit for the Index Protection Strategy with Trigger
was previously called the DPSC
– Performance Credit for the Index Protection Strategy with Cap was
previously called the Protection Credit
– Trigger Rate for the Index Precision Strategy was previously called
the Precision Rate
|
– For Contracts issued in Virginia, this terminology changed on May
13, 2024.
– For Contracts issued in New Jersey, this terminology changed on
December 11, 2023.
– For Contracts issued in Louisiana, Montana, and Wyoming, this
terminology changed on July 10, 2023.
– For Contracts issued in Maryland, this terminology changed on May
15, 2023.
– For Contracts issued in all other states, this terminology changed
on May 1, 2023.
|
Crediting Method / Index Options
|
Availability Restrictions:
|
Index Dual Precision Strategy 1-year Term with 10% Buffer are
available only to Contracts issued since November 14, 2023.
|
– Not available to Contracts issued before November 14, 2023.
– Not available to Contracts issued in Missouri, and Nebraska.
– Not available to Contracts issued in Virginia before May 13, 2024.
– Not available to Contracts issued in Idaho, Indiana, Louisiana,
Maryland, Montana, Nevada, and Wyoming before January 22,
2024.
– Not available to Contracts issued in New Jersey before December
11, 2023.
– For Contracts issued in all other states, this Crediting Method first
became available to newly issued Contracts on November 14,
2023.
|
Index Dual Precision Strategy 1-year Term with 20% or 30% Buffer
are available only to Contracts issued since May 1, 2024.
|
– Not available to Contracts issued before May 1, 2024.
– Not available to Contracts issued in Idaho, Missouri, and Nebraska.
– Not available to Contracts issued in Virginia before May 13, 2024.
– For Contracts issued in all other states, these first became
available to newly issued Contracts on May 1, 2024.
|
Index Performance Strategy 1-year Term with 20% or 30% Buffer are
available only to Contracts issued since November 14, 2023.
|
– Not available to Contracts issued before November 14, 2023.
– Not available to Contracts issued in Missouri, and Nebraska.
– Not available to Contracts issued in Virginia before May 13, 2024.
– Not available to Contracts issued in Idaho, Indiana, Louisiana,
Maryland, Montana, Nevada, and Wyoming before January 22,
2024.
– Not available to Contracts issued in New Jersey before December
11, 2023.
– For Contracts issued in all other states, these first became
available to newly issued Contracts on November 14, 2023.
|
Index Performance Strategy 6-year Term with 20% Buffer are
available only to Contracts issued since November 14, 2023.
|
– Not available to Contracts issued before November 14, 2023.
– Not available to Contracts issued in Missouri, and Nebraska.
– Not available to Contracts issued in Virginia before May 13, 2024.
– Not available to Contracts issued in Idaho, Indiana, Louisiana,
Maryland, Montana, Nevada, and Wyoming before January 22,
2024.
– Not available to Contracts issued in New Jersey before December
11, 2023.
– For Contracts issued in all other states, these first became
available to newly issued Contracts on November 14, 2023.
|
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.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
California
(continued)
|
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 greater of Contract
Value or Cash
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.
• 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.
|
|
Income Multiplier Benefit
See section 11
|
• Qualification for the portion of the benefit based on confinement for care
requiring a stay in an eligible facility is not available.
• Qualification for the benefit is expanded to include requiring substantial
supervision due to severe cognitive impairment.
|
|
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.
|
Connecticut
|
Income Multiplier Benefit
See section 10
|
This benefit is not available.
|
|
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.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
Connecticut
(continued)
|
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
greater of Contract Value or Cash 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.
• 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.
|
Florida
|
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 greater of Contract
Value or Cash
Value.
|
|
Purchase Requirements
See section 3
|
For Contracts issued before May 1, 2023, we can only decline
a Purchase
Payment if it would cause total Purchase Payments to be more
than $3
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).
|
|
Free Look/Right to Examine
Period
See section 3
|
For Contracts issued on or after May 1, 2023, we cannot
allocate your initial
Purchase Payment to the AZL Government Money Market Fund
during the
free look period.
|
|
When Annuity Payments
Begin
See section 8
|
• For Contracts issued before May 1, 2023, the earliest acceptable Annuity
Date is the first Contract Anniversary.
• For Contracts issued on or after May 1, 2023, the earliest acceptable
Annuity Date is the first Index Anniversary.
|
Hawaii
|
Income Multiplier Benefit
See section 10
|
This benefit is not available.
|
Maryland
|
Purchase Requirements
See section 3
|
On the Issue Date, all Owners (or the Annuitant if the Owner
is a
non-individual) must be:
• age 49 to 80, or
• age 49 to 75 if you select the Maximum Anniversary Value Death Benefit.
|
|
Income Multiplier Benefit
See section 10
|
For Contracts issued on or after May 15, 2023, this benefit
is not available.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
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 and give you the option of modifying
your withdrawal
request. If we cannot reach you within seven days of our
receipt of your
request in Good Order at our Service Center, we process your
request as a
full withdrawal.
|
New Jersey
|
Joint Owner
See section 2
|
We allow civil union partners to be Joint Owners.
|
|
Determining Life (Lives)
See section 2
|
We allow civil union partners to be joint Determining Lives.
|
|
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 greater of Contract
Value or Cash
Value.
|
|
Purchase Requirements
See section 3
|
• For Contracts issued on or before December 10, 2023: The maximum
total Purchase Payments that we can accept is $3 million.
We must
decline a Purchase Payment if it would cause total Purchase
Payments to
be more than $3 million, or if it would otherwise violate
the Purchase
Payment restrictions of your Contract (for example, we do
not allow
additional Purchase Payments on or after the Annuity Date).
• For Contracts issued on or after December 11, 2023: The maximum
total Purchase Payments that we can accept is $10 million.
We must
decline a Purchase Payment if it would cause total Purchase
Payments to
be more than $10 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 the greater of
Contract Value or Cash
Value.
|
Pennsylvania
|
Income Multiplier Benefit
See section 10
|
The requirement to begin confinement after the first
Contract Anniversary in
an eligible facility (a hospital, nursing facility, or
assisted living facility) is at
least 90 days provided each day of confinement is no more
than 6 months
after the previous day of confinement.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
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 the greater of
Contract Value or Cash
Value.
|
|
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.
|
|
Income Multiplier Benefit
See section 10
|
For Contracts issued before May 1, 2023, to qualify for a
payment increase
based on performance of ADLs, a Covered Person must have
been able to
perform each of these six ADLs on the Issue Date. There is
no requirement
this been done without substantial assistance.
|
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 the greater of
Contract Value or Cash
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:
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REGULAR MAIL
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Allianz Life Insurance Company of North America
P.O. Box 59060
Minneapolis MN 55459-0060
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OVERNIGHT, CERTIFIED, OR REGISTERED MAIL
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Allianz Life Insurance Company of North America
5701 Golden Hills Drive
Minneapolis MN 55416-1297
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Checks sent to the wrong address for applications or
additional Purchase Payments are forwarded to the 5701
Golden Hills Drive address listed above, which may
delay processing.
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