Minnesota (State or other jurisdiction of incorporation or organization) | 6311 (Primary Standard Industrial Classification Code Number) | 41-1366075 (I.R.S. Employer Identification No.) |
Standard Annuity Features | Available Investment Options | |
• Five fixed annuitization options (Annuity Options) • Free withdrawal privilege allows you withdraw up to 10% of your total purchase payments during the six-year withdrawal charge period • Systematic withdrawal program • Minimum distribution program for certain tax-qualified Contracts • Waiver of withdrawal charge benefit (Traditional Death Benefit) | • | • Income Benefit: Provides guaranteed lifetime income (Income Payments) based on a percentage of your investment value that can begin as early as age 50, or as late as age 100.This benefit is automatically included in the Contract, can be removed after three years, and has an additional rider fee. If you remove the Income Benefit you will have paid for the benefit without receiving any of its advantages. • Maximum Anniversary Value Death Benefit: Locks in any annual investment gains to potentially provide a death benefit greater than the Traditional Death Benefit. This optional benefit must be selected at issue, cannot be removed, and has an additional rider fee. |
Crediting Methods Currently Available Only the Index Performance Strategy offers 1-year, 3-year, and 6-year Terms. All other Crediting Methods only offer 1-year Terms. | Indexes Currently Available with 1-year Terms | Indexes Currently Available with 3-year and 6-year Terms (Index Performance Strategy only) |
• Index Protection Strategy with Declared Protection Strategy Credit (the DPSC is the return you receive if Index performance is zero or positive) • Index Protection Strategy with Cap • Index Precision Strategy(only available before Income Payments begin) • Index Guard Strategy(only available before Income Payments begin) • Index Performance Strategy (only available before Income Payments begin) | • S&P 500® Index • Russell 2000® Index • Nasdaq-100® Index • EURO STOXX 50® • iShares® MSCI Emerging Markets ETF | • S&P 500® Index • Russell 2000® Index |
Crediting Methods, Indexes, and the 3-year and 6-year Terms may not be available in all states, or to Contracts issued before April 30, 2021, as detailed in Appendix |
Crediting Method Highlights All Crediting Methods provide a level of protection against negative Credits from negative Index performance, and a limit on positive Credits from positive Index performance. Credits are the return you receive on the Term End Date | ||
Negative Index Performance Protection | Positive Index Performance Participation Limit | |
Index Protection Strategy with DPSC | • 100% – You will never receive a negative Credit | • Declared Protection Strategy Credits (DPSCs) – DPSCs cannot be less than |
Index Strategy with Cap | • | |
• Caps (the upper limit on positive Index performance) – Caps cannot be less than |
Crediting Method Highlights All Crediting Methods provide a level of protection against negative Credits from negative Index performance, and a limit on positive Credits from positive Index performance. Credits are the return you receive on the Term End Date | ||
Negative Index Performance Protection | Positive Index Performance Participation Limit | |
Index Precision Strategy | • Buffers (the amount of negative Index performance we absorb over the duration of a Term before you receive a negative Credit) – Buffers are 10% | • Precision Rates (the return you receive if Index performance is zero or positive) – Precision Rates cannot be less than 3% |
Index Guard Strategy | • Floors (the maximum amount of negative Index performance you absorb) – Floors are -10% | • Caps – Caps cannot be less than 3% |
Index Performance Strategy | • Buffers – Buffers for 1-year Terms and 6-year Terms with Participation Rate are 10% – Buffers for 3-year Terms (available to Contracts issued before April 30, 2021) are 20% – Buffers for 3-year Terms with Participation Rate are either 10% or 20% | • 1-year Term: Caps – Caps cannot be less than |
• 3-year Term: Caps (available to Contracts issued before April 30, 2021) – Caps cannot be less than 5% – Can be uncapped | ||
• 3-year and 6-year Terms: Caps and Participation Rates (a percentage of Index performance) (available to Contracts issued on or after April 30, 2021) – Caps for 3-year Terms cannot be less than 5% – Caps for 6-year Terms cannot be less than 10% – Both 3-year and 6-year Terms can be “uncapped” (i.e., we do not declare a Cap for that Term) – Participation Rates cannot be less than 100% |
Variable | ||
Investment Option – AZL® Government Money Market Fund |
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FEES AND EXPENSES | Prospectus Location | FEES AND EXPENSES | Prospectus Location | |||||
Charges for Early Withdrawals | If you withdraw money from the Contract within 6 years of your last Purchase Payment, you may be assessed a withdrawal charge of up to 8.5% of the Purchase Payment withdrawn, declining to 0% over that time period. For example, if you invest $100,000 in the Contract and make an early withdrawal, you could pay a withdrawal charge of up to $8,500. In addition, if you take a full or partial withdrawal (including financial adviser fees that you choose to have us pay from this Contract) from an Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy Index Option on a date other than the Term End Date, a Daily Adjustment will apply to the Index Option Value available for withdrawal. The Daily Adjustment also applies if before the Term End Date you execute a Performance Lock, annuitize the Contract, we pay a death benefit, or we deduct Contract fees and expenses. The Daily Adjustment may be negative, and you will lose money if the Daily Adjustment is negative. • Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy . Daily Adjustments under these Crediting Methods may be positive, negative, or equal to zero. A negative Daily Adjustment will result in loss. In extreme circumstances, a negative Daily Adjustment could result in a loss beyond the protection of the 10% or 20% Buffer, or -10% Floor, as applicable, but it cannot result in a total loss of -100%. • Index Protection Strategy . This Crediting Method is not subject to the Daily Adjustment. | Fee Tables 4. Valuing Your Contract – Daily Adjustment 6. Expenses – Withdrawal Charge Appendix B – Daily Adjustment | If you withdraw money from the Contract within 6 years of your last Purchase Payment, you may be assessed a withdrawal charge of up to 8.5% of the Purchase Payment withdrawn, declining to 0% over that time period. For example, if you invest $100,000 in the Contract and make an early withdrawal, you could pay a withdrawal charge of up to $8,500. In addition, if you take a full or partial withdrawal (including financial adviser fees that you choose to have us pay from this Contract) from an Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy Index Option on a date other than the Term End Date, a Daily Adjustment will apply to the Index Option Value available for withdrawal. The Daily Adjustment also applies if before the Term End Date you execute a Performance Lock, annuitize the Contract, we pay a death benefit, or we deduct Contract fees and expenses. The Daily Adjustment may be negative, and you will lose money if the Daily Adjustment is negative. • Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy . Daily Adjustments under these Crediting Methods may be positive, negative, or equal to zero. A negative Daily Adjustment will result in loss. In extreme circumstances, a negative Daily Adjustment could result in a loss beyond the protection of the 10% or 20% Buffer, or -10% Floor, as applicable, but it cannot result in a total loss of -100%. • Index Protection Strategy with DPSC and Index Protection Strategy with Cap . These Crediting Methods are not subject to the Daily Adjustment. | Fee Tables 4. Valuing Your Contract – Daily Adjustment 6. Expenses – Withdrawal Charge Appendix B – Daily Adjustment | ||||
Transaction Charges | In addition to withdrawal charges, and Daily Adjustments that may apply to withdrawals and other transactions from the Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy Index Options, we will also charge you a fee of $25 per transfer after you exceed 12 transfers between Variable Options (the variable investments available to you) in a Contract Year. | Fee Tables 6. Expenses – Transfer Fee | Other than withdrawal charges, and Daily Adjustments that may apply to withdrawals and other transactions from the Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy, there are no other transaction charges. | Not Applicable | ||||
Ongoing Fees and Expenses (annual charges) | The table below describes the fees and expenses that you may pay each year , depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. These ongoing fees and expenses do not reflect any financial adviser fees paid to a Financial Professional from your Contract Value or other assets of the Owner. If such charges were reflected, these ongoing fees and expenses would be higher. | Fee Tables 6. Expenses Appendix H – Variable Options Under the Contract | The table below describes the fees and expenses that you may pay each year , depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. These ongoing fees and expenses do not reflect any financial adviser fees paid to a Financial Professional from your Contract Value or other assets of the Owner. If such charges were reflected, these ongoing fees and expenses would be higher. | Fee Tables 6. Expenses Appendix I – Variable Investment Option Under the Contract | ||||
Annual Fee | Minimum | Maximum | Annual Fee | Minimum | Maximum | |||
Base Contract (1) | 1.26% | 1.26% | Base Contract (1) | 1.95% | 1.95% | |||
Investment Options (2) (Variable Option fees and expenses) | 0.65% | 0.71% | Investment Options (2) (Variable Investment Option fees and expenses) | 0.65% | 0.65% | |||
Optional Benefits Available for an Additional Charge (3) (for a single optional benefit, if elected) | 0.20% | Optional Benefits Available for an Additional Charge (3) (for a single optional benefit, if elected) | 0.20% | |||||
(1) As a percentage of the Charge Base, plus an amount attributable to the contract maintenance charge. | (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 Variable Option’s average daily net assets. | (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. | (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 Precision Strategy, Index Guard Strategy, and Index Performance Strategy Index Options could result in substantial losses due to the application of negative Daily Adjustments . | ||||
Lowest Annual Cost: $ | Highest Annual Cost: $ | |||
Assumes: • Investment of $100,000 • 5% annual appreciation • 0.70% Income Benefit rider fee • Traditional Death Benefit • No additional Purchase Payments, transfers, or withdrawals • No financial adviser fees | Assumes: • Investment of $100,000 • 5% annual appreciation • 0.70% Income Benefit rider fee • Maximum Anniversary Value Death Benefit with a 0.20% rider fee • No additional Purchase Payments, transfers, or withdrawals • No financial adviser fees | |||
RISKS | ||||
Risk of Loss | You can lose money by investing in the Contract, including loss of principal and previous earnings. | Risk Factors |
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, | Risk Factors Summary of the Index Options 4. Valuing Your Contract |
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 | 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 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 AZL Government Money Market Fund. The sole purpose of the AZL Government Money Market Fund 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., all Purchase Payments received before the first | Summary of the Index Options Income Benefit Contract – Allocation of Purchase Payments and Contract Value 5. AZL Government Money Market 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. |
TAXES | Prospectus Location | |||
Tax Implications | • Consult with a tax professional to determine the tax implications of an investment in and withdrawals from or payments received under the Contract. • If you purchased the Contract through a tax-qualified plan or individual retirement account (IRA), you do not get any additional tax benefit under the Contract. • Earnings under the Contract may be taxed at ordinary income rates when withdrawn, and you may have to pay a 10% additional federal tax if you take a full or partial withdrawal before age 59 1 ⁄ 2 . | |||
CONFLICTS OF INTEREST | ||||
Investment Professional Compensation | Your Financial Professional may receive compensation for selling this Contract to you, in the form of commissions, additional cash benefits (e.g., cash bonuses), and non-cash compensation. We and/or our wholly owned subsidiary distributor may also make marketing support payments to certain selling firms for marketing services and costs associated with Contract sales. This conflict of interest may influence your Financial Professional to recommend this Contract over another investment for which the Financial Professional is not compensated or compensated less. | Information – Distribution | ||
Exchanges | Some Financial Professionals may have a financial incentive to offer you a new contract in place of the 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. | Information – Distribution |
• | Accumulation Phase. This is the first phase of your Contract, and it begins on the Issue Date. During the Accumulation Phase, your money is invested under the Contract on a tax-deferred basis. Tax deferral may not be available for certain non-individually owned contracts. Tax deferral means you are not taxed on any earnings or appreciation on the assets in your Contract until you take money out of your Contract. In addition, during this phase, you can make additional Purchase Payments (until you request Income Payments under the Income Benefit), you can take withdrawals (including Income Payments), and if you die we pay a death benefit to your named Beneficiary(s). If you begin Income Payments, the Income Period occurs during the Accumulation Phase and starts on the Income Benefit Date. |
Your Contract Value may fluctuate up or down during the Accumulation Phase based on the performance of your selected |
– | Index Options. You may allocate your Purchase Payments to any or all of the Index Options available under your Contract. There are currently |
The available Crediting Methods, Indexes, and Terms are included on the cover page of this prospectus. Please see “Summary of the Index Options” for an overview of how the Index Options work. More detailed information about the Index Options is included in section 4, Valuing Your Contract. |
– | |
Please see Appendix |
• | Annuity Phase. If you request Annuity Payments, the Accumulation Phase (including the Income Period under the Income Benefit, if applicable) ends and the Annuity Phase begins. Annuity Payments are fixed payments we make based on the Annuity Option you select and your Contract Value (which reflects any previously deducted Contract fees and expenses) less final product and rider fees. Annuity Payments can provide a guaranteed lifetime fixed income stream with certain tax advantages. We designed the Annuity Payments for Owners who no longer need immediate access to Contract Value to meet their short-term income needs. |
If the Annuity Date occurs after Income Payments begin, we will convert these payments to Annuity Payments if your Contract Value is greater than zero and you take Annuity Payments under Annuity Option 1 if you are receiving single Income Payments, or Annuity Option 3 if you are receiving joint Income Payments. If you select any other Annuity Option 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. For more information, see section 8, The Annuity Phase – When Annuity Payments Begin. | |
During the Annuity Phase, you will receive a stream of regular income in the form of Annuity Payments. You will be unable to take withdrawals upon demand, your selected death benefit ends, and no amounts will be payable upon death during the Annuity Phase unless your Annuity Option provides otherwise. The Income Benefit will also end upon entering the Annuity Phase unless we convert your Income Payments to Annuity Payments. |
• | Accessing Your Money. During the Accumulation Phase, you can surrender (take a full withdrawal) the Contract or take partial withdrawals. Withdrawals may be subject to a withdrawal charge, negative Daily Adjustments, and income taxes, including a 10% additional federal tax if taken before age 59 1 ⁄ 2 . |
• | Additional Purchase Payments. Subject to the limitations described in this prospectus, we continue to accept additional Purchase Payments under the Contracts during the Accumulation |
• | Income Benefit. The Income Benefit is automatically included in your Contract for an additional rider fee. You can remove it from your Contract on or after the third Index Anniversary and before Income Payments begin if your Contract Value is positive. If you remove the Income Benefit you will have paid for the benefit without receiving any of its advantages. The Income Benefit provides for guaranteed lifetime Income Payments until annuitization based on a percentage of your Contract Value. If you request Income Payments, your Contract will enter the Income Period (which is part of the Accumulation Phase). If you do not take Income Payments, your Contract will not have an Income Period, and you will have paid for the benefit without receiving any of its advantages. Unlike the Annuity Phase, the Income Benefit allows access to your Contract Value and your selected death benefit after Income Payments begin while both the Contract Value and Guaranteed Death Benefit Value are positive. |
Please see “Summary of the Income Benefit” for an overview of how the Income Benefit works. More detailed information about the Income Benefit is included in section 10, Income Benefit. In addition, for information on the terms used to determine your Income Payments, please see the Income Benefit Supplement. |
• | Death Benefits. The Contract’s death benefit is paid upon the first death of any Determining Life during the Accumulation Phase. The Contract includes for no additional charge a standard death benefit (the Traditional Death Benefit) . At the time of purchase, you may select the optional death benefit (the Maximum Anniversary Value Death Benefit) to replace the standard death benefit for an additional rider fee. Either death benefit is the greater of Contract Value, or the Guaranteed Death Benefit Value. Unlike the Traditional Death Benefit, however, the Maximum Anniversary Value Death Benefit locks in any annual investment gains as part of the Guaranteed Death Benefit Value to potentially provide a death benefit greater than the Traditional Death Benefit (which is based on Purchase Payments). The Maximum Anniversary Value Death Benefit cannot be less than the Traditional Death Benefit, but they can be equal. |
• | Withdrawal Charge Waivers. Under the free withdrawal privilege, you may withdraw up to 10% of your total Purchase Payments each Contract Year during the Accumulation Phase and before the Income Period without incurring a withdrawal charge. Upon a full withdrawal, the free withdrawal privilege is not available to you. We do not apply a withdrawal charge to deductions we make for Contract fees or expenses. In most states, the waiver of withdrawal charge benefit allows you to take a withdrawal without incurring a withdrawal charge if you are confined to a nursing home for a period of at least 90 consecutive days. Also, if you own an Individual Retirement Annuity (IRA) or Simplified Employee Pension (SEP) IRA Contract, payments you take under our minimum distribution program (RMD payments) are not subject to a withdrawal charge. |
• | Deduction of Financial Adviser Fees. If you have a financial adviser and want to pay their financial adviser fees from this Contract, you can instruct us to withdraw the fee from your Contract and pay it to your Financial Professional or Financial Professional’s firm as instructed. The deduction of financial adviser fees is in addition to this Contract’s fees and expenses, and the deduction is treated the same as any other withdrawal under the Contract. As such, withdrawals to pay financial adviser fees may be subject to withdrawal charges, will reduce the Contract Value and Guaranteed Death Benefit Value (perhaps significantly), and may be subject to income taxes (including tax penalties if you are younger than age 59 1 ⁄ 2 ). Please consult with your Financial Professional before requesting us to pay financial adviser fees from this Contract compared to other assets you may have. |
• | If the Index Return is positive, the Protection Credit is equal to the Index Return up to the Cap. |
• | If the Index Value on the Term End Date is equal to or less than the Index Value on the Term Start Date, the Protection Credit is zero. |
• | If the Index Value on the Term End Date is equal to or greater than the Index Value on the Term Start Date, regardless of the amount of actual Index Return, the Performance Credit is equal to the Precision Rate. |
• | If the Index Return is negative and the loss is: |
– | less than or equal to the 10% Buffer, the Performance Credit is zero. We absorb any loss up to the 10% Buffer. |
– | greater than the 10% Buffer, the negative Performance Credit is equal to the negative Index Return in excess of the 10% Buffer. You participate in any losses beyond the 10% Buffer. |
• | If the Index Return is positive, the Performance Credit is equal to the Index Return up to the Cap. |
• | If the Index Value on the Term End Date is equal to the Index Value on the Term Start Date, the Performance Credit is zero. |
– | the Index Return up to the Cap for a 1-year Term. |
– | the Index Return up to the Cap for a 3-year Term available to Contracts issued before April 30, 2021. If a 3-year Term is uncapped, the Performance Credit is equal the Index Return. We apply the Cap for the entire Term length; we do not apply the Cap annually on a 3-year Term. |
– | Index Return multiplied by the Participation Rate, up to the Cap for a 3-year or 6-year Term available to Contracts issued after April 30, 2021. If the 3-year or 6-year Term is uncapped, the Performance Credit is equal to the Index Return multiplied by the Participation Rate. We apply the Participation Rate and Cap for the entire Term length; we do not apply the Participation Rate and Cap annually on a 3-year or 6-year Term. |
• | If the Index Value on the Term End Date is equal to the Index Value on the Term Start Date, the Performance Credit is zero. |
• | If the Index Return is negative and the loss is: |
– | less than or equal to the 10% or 20% Buffer, the Performance Credit is zero. We absorb any loss up to the 10% or 20% Buffer. We apply the Buffer for the entire Term length; we do not apply the Buffer annually on a 3-year or 6-year Term Index Option. |
– | greater than the 10% or 20% Buffer, the negative Performance Credit is equal to the negative Index Return in excess of the 10% or 20% Buffer. You participate in any losses beyond the 10% or 20% Buffer. |
• The Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy allow negative Performance Credits. A negative Performance Credit means you can lose principal and previous earnings. These losses could be significant. |
• Because we calculate Index Returns only on a single date in time, you may experience negative or flat performance even though the Index you selected for a given Crediting Method experienced gains through some, or most, of the Term. |
• If a 3-year or 6-year Term Index Option is “uncapped” for one Term (i.e., we do not declare a Cap for that Term) it does not mean that we will not declare a Cap for it on future Term Start Dates. On the next Term Start Date we can declare a Cap for the next Term, or declare it to be uncapped. |
What is the asset protection? | |
Index Protection Strategy with DPSC | • Most protection. • If the Index loses value, the Credit is zero. You do not receive a negative Credit. |
Index Protection Strategy with Cap | • Most protection. • If the Index loses value, the Credit is zero. You do not receive a negative Credit. |
Index Precision Strategy | • Less protection than the Index Protection Strategy with DPSC, Index Protection Strategy with Cap, and Index Guard Strategy. Protection may be equal to or less than what is available with the Index Performance Strategy depending on the Index Option. • Buffer absorbs 10% of loss, but you receive a negative Performance Credit for losses greater than 10%. • Potential for large losses in any Term. • More sensitive to large negative market movements because small negative market movements are absorbed by the 10% Buffer. In a period of extreme negative market performance, the risk of loss is greater with the Index Precision Strategy than with the Index Guard Strategy. |
Index Guard Strategy | • Less protection than the Index Protection Strategy with DPSC and Index Protection Strategy with Cap, but more than Index Precision Strategy and Index Performance Strategy. • Permits a negative Performance Credit down to the -10% Floor. • Protection from significant losses. • More sensitive to smaller negative market movements that persist over time because the -10% Floor reduces the impact of large negative market movements. • In an extended period of smaller negative market returns, the risk of loss is greater with the Index Guard Strategy than with the Index Performance Strategy and Index Precision Strategy. • Provides certainty regarding the maximum loss in any Term. |
Index Performance Strategy | • Less protection than the Index Protection Strategy with DPSC, Index Protection Strategy with Cap, and Index Guard Strategy. 3-year Term Index Options with 20% Buffer have more protection than what is available with the Index Precision Strategy. • Buffer absorbs 10% or 20% of loss depending on the Index Option you select, but you receive a negative Performance Credit for losses greater than the Buffer. • Potential for large losses in any Term. • More sensitive to large negative market movements because small negative market movements are absorbed by the Buffer. In a period of extreme negative market performance, the risk of loss is greater with the Index Performance Strategy than with the Index Guard Strategy. • In extended periods of moderate to large negative market performance, 3-year and 6-year Terms may provide less protection than the 1-year Terms because, in part, the Buffer is applied over a longer period of time. |
What is the growth opportunity? | |
Index Protection Strategy with DPSC | • Growth opportunity limited by the DPSCs. • Least growth opportunity. • May perform best in periods of small positive market movements. • DPSCs will generally be less than the Precision Rates and Caps. |
• Growth opportunity limited by the Caps. • May perform best in periods of small positive market movements. • Generally more growth • Caps will generally be greater than DPSCs, but less than the Precision Rates and Caps for the Index Guard Strategy and Index Performance Strategy. | |
Index Precision Strategy | • Growth opportunity limited by the Precision Rates. • May perform best in periods of small positive market movements. • Generally more growth opportunity than the Index Protection Strategy with DPSC and Index Protection Strategy with Cap, but less than the Index Performance Strategy. • Growth opportunity may be more or less than the Index Guard Strategy depending on Precision Rates and Caps. |
Index Guard Strategy | • Growth opportunity limited by the Caps. • May perform best in a strong market. • Growth opportunity that generally may be matched or exceeded only by the Index Performance Strategy. However, growth opportunity may be more or less than the Index Precision Strategy or Index Performance Strategy depending on Precision Rates and Caps. |
Index Performance Strategy | • Growth opportunity limited by the Caps and/or Participation Rates. If we do not declare a Cap for a 3-year or 6-year Term Index Option there is no maximum limit on the positive Index Return for that Index Option. In addition, you can receive more than the positive Index Return if the Participation Rate applies and is greater than its 100% minimum. However, the Participation Rate cannot boost Index Returns beyond a declared Cap. • May perform best in a strong market. • Generally the most growth opportunity. However, growth opportunity may be less than the Index Precision Strategy or Index Guard Strategy depending on Precision Rates, Caps, and/or Participation Rates. |
What can change within a Crediting Method? | |
Index Protection Strategy with DPSC | • Renewal DPSCs for existing Contracts can change on each Term Start Date. • DPSCs are subject to a |
Index Protection Strategy with Cap | • Renewal Caps for existing Contracts can change on each Term Start Date. • Caps are subject to a 0.50% minimum. |
Index Precision Strategy | • Renewal Precision Rates for existing Contracts can change on each Term Start Date. • 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. • Precision Rates are subject to a |
Index Guard Strategy | • Renewal Caps for existing Contracts can change on each Term Start Date. • 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. • Caps are subject to a |
Index Performance Strategy | • Renewal Caps and/or Participation Rates for existing Contracts can change on each Term Start Date. • The 10% or 20% Buffers for the currently available Index Options cannot change. However, if we add a new Index Option to your Contract after the Issue Date, we establish the Buffer for it on the date we add the Index Option to your Contract. • Caps are subject to a |
• For any Index Option with the Index Precision Strategy or Index Performance Strategy, you participate in any negative Index Return in excess of the Buffer , which reduces your Contract Value. For example, for a 10% Buffer we absorb the first -10% of Index Return and you could lose up to 90% of the Index Option Value. However, for any Index Option with the Index Guard Strategy , we absorb any negative Index Return in excess of the -10% Floor, so your maximum loss is limited to -10% of the Index Option Value due to negative Index Returns. |
• DPSCs, Precision Rates, Caps, and Participation Rates as set by us from time-to-time may vary substantially based on market conditions. However, in extreme market environments, it is possible that all DPSCs, Precision Rates, Caps, and Participation Rates will be reduced to their respective minimums of |
• DPSCs, Precision Rates, Caps, and Participation Rates can be different from Index Option to Index Option. For example, Caps for the Index Performance Strategy 1-year Terms can be different between the S&P 500 ® Index and the Nasdaq-100 ® Index; and Caps for the S&P 500 ® Index can be different between 1-year, 3-year, and 6-year Terms on the Index Performance Strategy, and between the 1-year Terms for the Index Guard Strategy and Index Performance Strategy. They may also be different from Contract-to-Contract depending on the Index Effective Date and the state of issuance. |
Historical information on the DPSCs, Precision Rates, Caps, and Participation Rates is provided in Appendix C. This information is for historical purposes only and is not a representation as to future DPSCs, Precision Rates, Caps, and Participation Rates. |
• If your Contract is within its free look period you may be able to take advantage of any increase in initial DPSCs, Precision Rates, Caps, and/or Participation Rates by cancelling your Contract and purchasing a new Contract. |
• If the initial DPSCs, Precision Rates, Caps, and/or Participation Rates available on the Index Effective Date are not acceptable you can: |
– 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, |
– on or before the Index Effective Date, cancel the Contract and request a full withdrawal of the money held in the AZL Government Money Market Fund and receive the Contract Value less withdrawal charge, and final product and rider fees and contract maintenance charge; on or before the Index Effective Date you are not subject to the Daily Adjustment, but you are subject to a withdrawal charge ., or |
– after the Index Effective Date, cancel the Contract and request a full withdrawal of the Contract Value less withdrawal charge, and final product and rider fees and contract maintenance charge; after the Index Effective Date, you will be subject to a withdrawal charge and the Daily Adjustment . |
• DPSCs, Precision Rates, Caps, and Participation Rates may be different between newly issued and existing Contracts, and between existing Contracts issued on the same month and day in different years. For example, assume that on |
– 13% initial rate for new Contracts issued in |
– 14% renewal rate for existing Contracts issued in |
– 12% renewal rate for existing Contracts issued in |
– | On each Business Day during the Term other than the Term Start Date or Term End Date, we calculate the current Index Option Value for each Index Option with the Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy by adding a Daily Adjustment to the Index Option Base. The Index Option Base is the amount you allocate to an Index Option. We reduce the Index Option Base proportionately for withdrawals you take and any financial adviser fees that you choose to have us pay from this Contract (including any withdrawal charges), and deductions we make for Contract fees and expenses; we increase/decrease it by the dollar amount of additional Purchase Payments allocated to, transfers into or out of the Index Option; and any Credit. |
– | During the Term the Index Option Values for Index Options with the Index Protection Strategy with DPSC and Index Protection Strategy with Cap do not change for Index performance, and do not receive the Daily Adjustment. |
(i) | any Index gains during the Term subject to the applicable Precision Rate, Cap, and/or Participation Rate, |
(ii) | either any Index losses greater than the 10% or 20% Buffer, or Index losses down to the -10% Floor, and |
(iii) | the number of days until the Term End Date. |
We will not provide advice or notify you regarding whether you should exercise a Performance Lock or the optimal time for doing so. We will not warn you if you exercise a Performance Lock at a sub-optimal time. We are not responsible for any losses related to your decision whether or not to exercise a Performance Lock. |
• | An Income Percentage for each payment type using the Eligible Person’s current age, or younger Eligible Person’s current age for joint payments. This Income Percentage is also the initial Lifetime Income Percentage for each payment type. |
• | An Income Percentage Increase for each Eligible Person based on their current age (or younger Eligible Person’s current age for joint payments). However, if there are two Eligible Person(s) the Index Options Statement will not display a single Lifetime Income Percentage for an Eligible Person who is only a Beneficiary, because only an Eligible Person who is also an Owner (or Annuitant if the Owner is a non-individual) can become a Covered Person if you select single payments. |
• | you will not receive an increase to a Lifetime Income Percentage based on that Eligible Person until the Index Anniversary that the Eligible Person (or younger Eligible Person for joint payments) reaches age 45, and |
• | you will pay a rider fee during the period you are not eligible for an Income Percentage Increase. |
• | the Income Percentage for the Eligible Person’s current age, and |
• | the Variable Account Value’s percentage of total Contract Value. |
• 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 allianzlife.com/indexincomerates . |
• Please discuss the Income Benefit’s appropriateness with your Financial Professional and tax adviser. |
– | change the Owner(s) or Beneficiary and all Covered Persons are removed from the Contract because they no longer meet the requirements stated in section 2, |
– | take an Excess Withdrawal that reduces the Contract Value to $2,000 or less, or |
– | you annuitize your Contract. However, we can convert your Income Payment to Annuity Payments as described in section 8, The Annuity Phase – When Annuity Payments Begin. |
• | If you begin Income Payments before age 59 1⁄2, the payments will generally be subject to a 10% additional federal tax. |
• | Any part of your annual maximum Income Payment that you do not withdraw in a given Income Benefit Year remains in your Contract for the remainder of that year, but is not added to the annual maximum payment available next year. |
• | You cannot make additional Purchase Payments and any active automatic investment plan ends. If your Contract includes the Traditional Death Benefit your Guaranteed Death Benefit Value no longer increases. |
• | The Contract Value continues to fluctuate as a result of Index Option performance. However, only the Index Protection Strategy with DPSC and Index Protection Strategy with Cap are available to you. This may limit your Contract’s performance potential, and if your Contract includes the Maximum Anniversary Value Death Benefit, this may also limit your Guaranteed Death Benefit Value. |
• | The Contract Value decreases on a dollar for dollar basis with each Income Payment, Excess Withdrawal (including any financial adviser fees that you choose to have us pay from this Contract), and deductions we make for Contract fees and expenses. If your Contract includes the Maximum Anniversary Value Death Benefit, this decrease in Contract Value also reduces the likelihood of locking in investment gains to the Maximum Anniversary Value. |
• | Each Income Payment and any Excess Withdrawal also reduces your Guaranteed Death Benefit Value by the percentage of Contract Value withdrawn (including any withdrawal charges) , which means this value may be reduced by more than the amount withdrawn . |
• | The Income Benefit rider fee continues until the Business Day the Contract Value reduces to zero, you annuitize the Contract, or the Income Benefit ends. |
• | If your Contract also includes the Maximum Anniversary Value Death Benefit, its rider fee continues as indicated in section 6, Expenses. |
• | The free withdrawal privilege is no longer available and any systematic withdrawal program ends. |
• | If your Contract Value reduces to zero during the Income Period for any reason other than an Excess Withdrawal or annuitization that does not convert your Income Payments to Annuity Payments, you will continue to receive your maximum available Income Payment at the previous selected payment frequency until the earlier of the death of the Owner or last surviving Covered Person. |
Number of Complete Years Since Purchase Payment | Withdrawal Charge Amount | |
0 | 8.5% | |
1 | 8% | |
2 | 7% | |
3 | 6% | |
4 | 5% | |
5 | 4% | |
6 years or more | 0% |
Index Precision Strategy and Index Performance Strategy | Index Guard Strategy | Index Precision Strategy and Index Performance Strategy | Index Guard Strategy | |||
Daily Adjustment Maximum Potential Loss | 99% | 35% | 99% | 35% | ||
(as a percentage of Index Option Value, applies for distributions from an Index Option before any Term End Date) |
(1) | The Contract provides a free withdrawal privilege before the Income Period that allows you to withdraw 10% of your total Purchase Payments annually without incurring a withdrawal charge, as discussed in section 7, Access to Your Money – Free Withdrawal Privilege. |
(2) | The Withdrawal Charge Basis is the total amount under your Contract that is subject to a withdrawal charge, as discussed in section 6, Expenses – Withdrawal Charge. |
(3) | |
This shows the maximum potential loss due to the application of the Daily Adjustment (e.g., maximum loss could occur if there is a total distribution within a Term at a time when the Index price has declined to zero). The Daily Adjustment could result in a loss beyond the protection of the 10% or 20% Buffer, or -10% Floor. The Daily Adjustment applies if before the Term End Date you take a full or partial withdrawal (including any financial adviser fees that you choose to have us pay from this Contract), execute a Performance Lock, annuitize the Contract, we pay a death benefit, or when we deduct Contract fees or expenses. The actual Daily Adjustment calculation is determined by a formula described in Appendix B. |
Administrative Expenses (or contract maintenance charge) (1) (per year) | $50 |
Base Contract Expenses (2) (as a percentage of the Charge Base) | |
Optional Benefit Expenses – Maximum Anniversary Value Death Benefit (as a percentage of the Charge Base) | 0.20% |
(1) | Referred to as the “contract maintenance charge” in the Contract and elsewhere in this prospectus. Waived if the Contract Value is at least $100,000. During the Annuity Phase, we deduct the contract maintenance charge proportionately from each Annuity Payment. See the section 6, Expenses – Contract Maintenance Charge (Administrative Expenses). |
(2) |
Minimum | Maximum | ||
(expenses that are deducted from Variable Option assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.65% | 0.71% |
(expenses that are deducted from the fund’s assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) | 0.65% |
1 Year | 3 Years | 5 Years | 10 Years | |
Maximum Variable Option expense | $9,836 | $13,057 | $16,108 | $25,068 |
Minimum Variable Option expense | $9,776 | $12,875 | $15,801 | $24,445 |
1 Year | 3 Years | 5 Years | 10 Years | |
Maximum Variable Option expense | N/A* | $6,757 | $11,608 | $25,068 |
Minimum Variable Option expense | N/A* | $6,575 | $11,301 | $24,445 |
1 Year | 3 Years | 5 Years | 10 Years | |
If you surrender your Contract (take a full withdrawal) at the end of the applicable time period. | $10,484 | $15,065 | $19,565 | $32,585 |
If you annuitize your Contract at the end of the applicable time period. | N/A* | $ 8,765 | $15,065 | $32,585 |
If you do not surrender your Contract. | $ 2,834 | $ 8,765 | $15,065 | $32,585 |
* | The earliest available Annuity Date is the second |
1 Year | 3 Years | 5 Years | 10 Years | |
Maximum Variable Option expense | $2,186 | $6,757 | $11,608 | $25,068 |
Minimum Variable Option expense | $2,126 | $6,575 | $11,301 | $24,445 |
The COVID-19 pandemic has at times led to significant volatility and negative returns in the financial markets. These market conditions have impacted the performance of the Indexes to which the Index Options are linked, as well as securities held by the The military invasion of Ukraine initiated by Russia in February 2022 and the resulting response by the United States and other countries have led to economic disruptions, as well as increased volatility and uncertainty in the financial markets. It is not possible to predict the ultimate duration and scope of the conflict, or the future impact on U.S. and global economies and financial markets. The performance of the Indexes to which the Index Options are linked, as well as securities held by the AZL Government Money Market Fund, may be adversely affected. This risk could be higher for Indexes with exposure to European or Russian markets, including EURO STOXX 50 ® and iShares ® MSCI Emerging Markets ETF. Depending on your individual circumstances (e.g., your selected Index Options and the timing of any Purchase Payments, transfers, or withdrawals), you may experience (perhaps significant) negative returns under the Contract. You should consult with a Financial Professional about how the recent market conditions may impact your future investment decisions related to the Contract, such as purchasing the Contract or making Purchase Payments, transfers, or withdrawals, based on your individual circumstances. |
• | interest rate decreases, |
• | dividend rate increases, |
• | poor market performance, and |
• | the expected volatility of Index prices. Increases in the expected volatility of Index prices negatively affect the Index Precision Strategy and Index Performance Strategy with 1-year Terms, while decreases in the expected volatility of Index prices negatively affect the Index Guard Strategy. For the Index Performance Strategy with 3-year and 6-year Terms, and Index Protection Strategy with Cap, the impact of changes in the expected volatility of Index prices is dependent on the market environment and the applicable Caps and Participation Rates. For the Index Protection Strategy with DPSC, the impact of changes in the expected volatility of Index prices is dependent on the market environment. |
January 1, 2011 through December 31, 2021 | |||||||||
S&P 500 ® Index | Nasdaq-100 ® Index | Russell 2000 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||
Returns without dividends | 14.84% | 22.67% | 12.57% | 7.03% | 3.79% | ||||
Returns with dividends | 17.11% | 24.05% | 14.07% | 10.88% | 5.90% |
• | You will no longer participate in Index performance, positive or negative, for the remainder of the Index Year for the locked Index Option. This means that under no circumstances will your Index Option Value increase during the remainder of the Index Year. |
• | You will not receive a Performance Credit on any locked Index Option on the Term End Date. |
• | We use the Daily Adjustment calculated at the end of the current Business Day on the Lock Date to determine your locked Index Option Value. This means you will not be able to determine in advance your locked Index Option Value, and it may be higher or lower than it was at the point in time you requested a manual Performance Lock, or that your Index Option reached its target for an automatic Performance Lock. Through your account on our website you can request a Performance Lock based on upper and/or lower targets you set using Index Option Value returns. |
• | If a Performance Lock is executed when your Daily Adjustment has declined, you will lock in any loss. It is possible that you would have realized less of a loss or no loss if the Performance Lock occurred at a later time, or if the Index Option was not locked. |
• | We will not provide advice or notify you regarding whether you should exercise a Performance Lock or the optimal time for doing so. We will not warn you if you exercise a Performance Lock at a sub-optimal time. We are not responsible for any losses related to your decision whether or not to exercise a Performance Lock. |
• | the Index is discontinued, |
• | we are unable to use the Index because, for example, changes to an Index make it impractical or expensive to purchase derivative hedging instruments to hedge the Index, or we are not licensed to use the Index, or |
• | the method of calculation of the Index Values changes substantially, resulting in significantly different Index Values and performance results. This could occur, for example, if an Index altered the types of securities tracked, or the weighting of different categories of securities. |
• | we do not change the Charge Base we use to calculate the product and rider fees, and |
• | the Buffers, Floors, DPSCs, Precision Rates, Caps, and Participation Rates for the replaced Index will apply to the new Index. We do not change the Buffers and Floors applicable to your Contract, or the current DPSCs, Precision Rates, Caps, and Participation Rates that we set on the Term Start Date. |
• | market volatility, |
• | our hedging strategies and investment performance, |
• | the availability of hedging instruments, |
• | the amount of money available to us through Contract fees and expenses to purchase hedging instruments, |
• | your Index Effective Date, |
• | the level of interest rates, |
• | utilization of Contract benefits by Owners, and |
• | our profitability goals. |
As a result of the COVID-19 pandemic and interrelated market factors (e.g., market volatility changes in interest rates, rising inflation, actions by governmental authorities), economic uncertainties have arisen which could negatively impact Allianz Life’s net income and surplus. The extent to which the COVID-19 pandemic and these other market factors will impact our business, net income, and surplus, as well as our capital and liquidity position, will depend on future developments, which are highly uncertain. For more information see section |
• | The Business Day |
• | The Business Day before the Annuity Date. |
• | Upon the death of any Owner (or the Annuitant if the Owner is a non-individual), the Business Day we first receive |
Financial Adviser Fee Withdrawal | Contract Value | Guaranteed Death Benefit Value for a Contract with the Traditional Death Benefit | Guaranteed Death Benefit Value for a Contract with the Maximum Anniversary Value Death Benefit | |||
Prior to 1 st years withdrawal | $ 100,000 | $ 90,000 | $ 105,000 | |||
$5,000 withdrawal (subject to an | ||||||
8.5% withdrawal charge) | – [($5,000 ÷ (1 – 8.5%)] | |||||
Amount withdrawn | – $5,465 | – [($5,465 ÷ 100,000) x 90,000] | – [($5,465 ÷ 100,000) x 105,000] | |||
�� | = - $4,919 | = - $5,739 | ||||
After 1 st years withdrawal | $ 94,535 | $ 85,081 | $ 99,261 | |||
Prior to 2 nd years withdrawal | $ 97,000 | $ 85,081 | $ 99,261 | |||
$5,000 withdrawal (not subject to a | ||||||
withdrawal charge) | – $5,000 | – [($5,000 ÷ 97,000) x 85,081] | – [($5,000 ÷ 97,000) x 99,261] | |||
= - $4,386 | = - $5,117 | |||||
After 2 nd years withdrawal | $ 92,000 | $ 80,695 | $ 94,414 | |||
Prior to 3 rd years withdrawal | $ 80,0000 | $ 80,695 | $ 94,414 | |||
$5,000 withdrawal (not subject to a | – $5,000 | – [($5,000 ÷ 80,000) x 80,695] | – [($5,000 ÷ 80,000) x 94,414] | |||
withdrawal charge) | = - $5,044 | = - $5,844 | ||||
After 3 rd years withdrawal | $ 75,000 | $ 75,651 | $ 88,260 |
• | $94,535 Contract Value under the Traditional Death Benefit, or the $99,261 Guaranteed Death Benefit Value under the Maximum Anniversary Value Death Benefit after the first adviser fee. |
• | $92,000 Contract Value under the Traditional Death Benefit, or the $94,414 Guaranteed Death Benefit Value under the Maximum Anniversary Value Death Benefit after the second adviser fee. |
• | $75,651 Guaranteed Death Benefit Value under the Traditional Death Benefit, or the $88,260 Guaranteed Death Benefit Value under the Maximum Anniversary Value Death Benefit after the third adviser fee. |
• | all applicable phases of the Contract (Accumulation Phase, Income Period and/or Annuity Phase) have ended, and/or |
• | if we received a Valid Claim, all applicable death benefit payments have been made. |
• | 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(s) receives the Contract Value. |
• | The Beneficiary becomes the Payee. If we are still required to make Annuity Payments under the selected Annuity Option, the Beneficiary also becomes the new Owner. |
• | If the deceased was not an Annuitant, Annuity Payments to the Payee continue. No death benefit is payable. |
• | If the deceased was the only surviving Annuitant, Annuity Payments end or continue as follows. |
– | Annuity Option 1 or 3, payments end. If Income Payments were converted to Annuity Payments under one of these Annuity Options, we will also pay any remaining value to the named Beneficiary(s). |
– | Annuity Option 2 or 4, payments end when the guaranteed period ends. |
– | Annuity Option 5, payments end and the Payee may receive a lump sum refund. |
• | you remove a Joint Owner due to divorce, then we also remove that person as a Determining Life, or |
• | you establish a jointly owned Non-Qualified Contract and change ownership to a Trust, then we remove the prior Owner who is not the Annuitant as a Determining Life. |
FOR JOINTLY OWNED CONTRACTS: The sole primary Beneficiary is the surviving Joint Owner regardless of any other named primary Beneficiaries. If both Joint Owners die simultaneously as defined by applicable state law or regulation, we pay the death benefit to the named contingent Beneficiaries or equally to the estate of the Joint Owners if there are no named contingent Beneficiaries. |
• | there is more than a 50-year age difference between spouses; |
• | you select the Traditional Death Benefit and purchase this Contract at the maximum issue age of 80 and there is more than a 20-year age difference between spouses; or |
• | you select the Maximum Anniversary Value Death Benefit and purchase this Contract at the maximum issue age of 75 and there is more than a 25-year age difference between spouses. |
• | You, the Owner, are an Eligible Person. |
• | If you and the sole primary Beneficiary are spouses within the meaning of federal tax law, the sole primary Beneficiary is also an Eligible Person. |
• | If you select single Income Payments only you, the Owner, can be the Covered Person. |
• | If you select joint Income Payments you must designate yourself, the Owner, to be a Covered Person. |
• | Both Joint Owners are Eligible Persons. |
• | If you select single Income Payments you can designate either Eligible Person to be the Covered Person. |
• | If you select joint Income Payments you must designate both Joint Owners to be the Covered Persons. |
• | The Annuitant is the Eligible Person. |
• | For Non-Qualified Contracts, we only allow one Eligible Person and joint Income Payments are not available. |
• | For Qualified Contracts, if the Owner is a qualified plan or a custodian and the Annuitant and sole contingent Beneficiary are spouses within the meaning of federal tax law, the sole contingent Beneficiary is also an Eligible Person. However, joint Income Payments are only available if the qualified plan or custodian is also the sole primary Beneficiary. This structure allows the surviving non-Annuitant spouse to continue to receive Income Payments, assuming the surviving non-Annuitant spouse is the beneficiary under the qualified plan or custodial IRA. |
• | If you select single Income Payments only the Annuitant can be the Covered Person. |
• An assignment may be a taxable event. In addition, there are other restrictions on changing the ownership of a Qualified Contract and Qualified Contracts generally cannot be assigned absolutely or on a limited basis. You should consult with your tax adviser before assigning this Contract. |
• An assignment will only change the Determining Life (Lives) if it involves removing a Joint Owner due to divorce, or replacing Joint Owners with a Trust. |
• | age 80 or younger, or |
• | age 75 or younger if you select the Maximum Anniversary Value Death Benefit. |
• | The minimum initial Purchase Payment due on the Issue Date is |
• | |
• | We do not accept additional Purchase Payments on or after the Income Benefit Date, or on or after the Annuity Date. |
• | The maximum total Purchase Payments we accept without our prior approval is $1 million. |
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). |
• |
For Owners of Qualified Contracts, AIP is not available if |
Variable Account Value increases when…. | Variable Account Value decreases when…. |
• • there is positive | • you take assets out of • there is negative • we deduct Contract fees and expenses |
Contract fees and expenses we deduct from the |
Index Option Values increase when…. | Index Option Values decrease when…. |
• you add assets to an Index Option by Purchase Payment or Contract Value transfer, or • you receive a positive Credit or Daily Adjustment | • you take assets out of an Index Option by withdrawal (including any financial adviser fees that you choose to have us pay from this Contract) or Contract Value transfer, • you receive a negative Credit or Daily Adjustment, or • we deduct Contract fees and expenses |
Contract fees and expenses we deduct from the Index Options include the product fee, rider fee, contract maintenance charge and withdrawal charge as described in section 6, Expenses. Financial adviser fees that you choose to have us pay from this Contract are described in section 1, The Contract. |
* | Does not apply to Income Payments or RMD payments under our minimum distribution program. |
• | We receive at our Service Center an additional Purchase Payment of $3,000 from you before the end of the Business Day. |
• | When the New York Stock Exchange closes on that Business Day, we determine that the accumulation unit value is $13.25 for the subaccount of |
• | We then divide $3,000 by $13.25 and credit your Contract that night with 226.415094 subaccount accumulation units for |
• | any Purchase Payment received that day which you allocated to that Index Option, and |
• | any Contract Value transferred into that Index Option. |
• | the Daily Adjustment if this is not the Term End Date and this is an Index Option with the Index Precision Strategy, Index Guard Strategy, or Index Performance Strategy, or |
• | a Credit if this is the Term End Date. |
• | We multiply each Index Option Base by its Credit and add this amount to its Index Option Base. |
• | Then we set each Index Option Value equal to its Index Option Base. |
• | Additional Purchase Payments received on the Term End Date and allocated to this Index Option, and transfers of Variable Account Value or Index Option Value into this Index Option, increase these values by the dollar amount allocated or transferred. |
• | Transfers out of this Index Option reduce these values by the dollar amount removed from the Index Option. |
– | We deduct partial withdrawals you take or financial adviser fees that you choose to have us pay from this Contract (including any withdrawal charge), and deductions we make for Contract fees and expenses from the Index Options proportionately based on the percentage of Contract Value in each Index Option using values determined at the end of the Business Day before we process the withdrawal or deduct the Contract expense. However, if you specifically direct us to take a partial withdrawal from a specific Index Option we reduce that Index Option Value by the dollar amount you specify (including any withdrawal charge). |
– | We then reduce each Index Option Base by the same percentage that the amount withdrawn reduced its associated Index Option Value. |
• | Your Contract Value is $100,000 and you selected two Index Options. The first Index Option has an Index Option Value of $75,000 and an Index Option Base of $72,000. The second Index Option has an Index Option Value of $25,000 and an Index Option Base of $22,000. You take a $10,000 partial withdrawal (including any withdrawal charge). |
• | This partial withdrawal reduces your Index Option Value by the percentage of Contract Value in each Index Option (Index Option Value ÷ Contract Value). |
– | For the first Index Option this percentage is 75% ($75,000 ÷ $100,000) and the $10,000 partial withdrawal reduces this value by $7,500 ($10,000 x 75%). For the second Index Option this percentage is 25% ($25,000 ÷ $100,000) and the $10,000 partial withdrawal reduces this value by $2,500 ($10,000 x 25%). |
– | For the first Index Option this percentage is 10% ($7,500 ÷ $75,000) and the $10,000 partial withdrawal reduces this value by $7,200 ($72,000 x 10%). For the second Index Option this percentage is also 10% ($2,500 ÷ $25,000) and the $10,000 partial withdrawal reduces this value by $2,200 ($22,000 x 10%). |
First Index Option | Second Index Option | ||||||
Index Option Value | Index Option Base | Index Option Value | Index Option Base | ||||
Prior to partial withdrawal | $ 75,000 | $ 72,000 | $ 25,000 | $ 22,000 | |||
$10,000 partial withdrawal | – $7,500 | – $7,200 | – $2,500 | – $2,200 | |||
After partial withdrawal | $ 67,500 | $ 64,800 | $ 22,500 | $ 19,800 |
• Amounts removed from the Index Options during the Term for partial withdrawals you take (including any financial adviser fees that you choose to have us pay from this Contract) and deductions we make for Contract fees and expenses do not receive a Credit on the Term End Date . However, the remaining amount in the Index Options is eligible for a Credit on the Term End Date. |
• You cannot specify from which |
• we hold Purchase Payments in the AZL Government Money Market Fund before transferring them to your selected Index • there is positive AZL Government Money Market Fund performance | • there is negative AZL Government Money Market Fund performance, or • we deduct Contract fees and expenses | |
Contract fees and expenses we deduct from the AZL Government Money Market Fund include the product fee, rider fee, contract maintenance charge and withdrawal charge as described in section 6, Expenses. Financial adviser fees that you choose to have us pay from this Contract are described in section 1, The Contract. |
Index Option Values increase when…. | Index Option Values decrease when…. | |
• you add assets to an Index Option by Purchase Payment or Contract Value transfer, or • you receive a positive Credit or Daily Adjustment | • you take assets out of an Index Option by withdrawal (including any financial adviser fees that you choose to have us pay from this Contract) or Contract Value transfer, • you receive a negative Credit or Daily Adjustment, or • we deduct Contract fees and expenses | |
Contract fees and expenses we deduct from the Index | ||
* | Does not apply to Income Payments or RMD payments under our minimum distribution program. |
• | We receive at our Service Center an additional Purchase Payment of $3,000 from you before the end of the Business Day. |
• | When the New York Stock Exchange closes on that Business Day, we determine that the accumulation unit value is $13.25 for the subaccount of the AZL Government Money Market Fund. |
• | We then divide $3,000 by $13.25 and credit your Contract that night with 226.415094 subaccount accumulation units for the AZL Government Money Market Fund. |
• | any Purchase Payment received that day which you allocated to that Index Option, and |
• | any Contract Value transferred into that Index Option. |
• | the Daily Adjustment if this is not the Term End Date and this is an Index Option with the Index Precision Strategy, Index Guard Strategy, or Index Performance Strategy, or |
• | a Credit if this is the Term End Date. |
• | We multiply each Index Option Base by its Credit and add this amount to its Index Option Base. |
• | Then we set each Index Option Value equal to its Index Option Base. |
Additional Purchase Payments received on the Term | |
• | Transfers out of this Index Option reduce these values by the dollar amount removed from the Index Option. |
– | We deduct partial withdrawals you take or financial adviser fees that you choose to have us pay from this Contract (including any withdrawal charge), and deductions we make for Contract fees and expenses from the Index Options proportionately based on the percentage of Contract Value in each Index Option using values determined at the end of the Business Day before we process the withdrawal or deduct the Contract expense. However, if you specifically direct us to take a partial withdrawal from a specific Index Option we reduce that Index Option Value by the dollar amount you specify (including any withdrawal charge). |
– | We then reduce each Index Option Base by the same percentage that the amount withdrawn reduced its associated Index Option Value. |
• | Your Contract Value is $100,000 and you selected two Index Options. The first Index Option has an Index Option Value of $75,000 and an Index Option Base of $72,000. The second Index Option has an Index Option Value of $25,000 and an Index Option Base of $22,000. You take a $10,000 partial withdrawal (including any withdrawal charge). |
• | This partial withdrawal reduces your Index Option Value by the percentage of Contract Value in each Index Option (Index Option Value ÷ Contract Value). |
– | For the first Index Option this percentage is 75% ($75,000 ÷ $100,000) and the $10,000 partial withdrawal reduces this value by $7,500 ($10,000 x 75%). For the second Index Option this percentage is 25% ($25,000 ÷ $100,000) and the $10,000 partial withdrawal reduces this value by $2,500 ($10,000 x 25%). |
– | For the first Index Option this percentage is 10% ($7,500 ÷ $75,000) and the $10,000 partial withdrawal reduces this value by $7,200 ($72,000 x 10%). For the second Index Option this percentage is also 10% ($2,500 ÷ $25,000) and the $10,000 partial withdrawal reduces this value by $2,200 ($22,000 x 10%). |
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 |
• | |
• | |
For Owners of Qualified Contracts, AIP is not available if your Contract is funding a plan that is tax qualified under Section 401 of the Code. |
Variable Account Value increases when…. | Variable Account Value decreases when…. |
• we hold Purchase Payments in the AZL Government Money Market Fund before transferring them to your selected Index Options, or • there is positive AZL Government Money Market Fund performance | • you take assets out of the AZL Government Money Market Fund by withdrawal (including financial adviser fees that you choose to have us pay from this Contract) or we transfer them to your selected Index Options, • there is negative AZL Government Money Market Fund performance, or • we deduct Contract fees and expenses |
Contract fees and expenses we deduct from the AZL Government Money Market Fund include the product fee, rider fee, contract maintenance charge and withdrawal charge as described in section 6, Expenses. Financial adviser fees that you choose to have us pay from this Contract are described in section 1, The Contract. |
Index Option Values increase when…. | Index Option Values decrease when…. |
• you add assets to an Index Option by Purchase Payment or Contract Value transfer, or • you receive a positive Credit or Daily Adjustment | • you take assets out of an Index Option by withdrawal (including any financial adviser fees that you choose to have us pay from this Contract) or Contract Value transfer, • you receive a negative Credit or Daily Adjustment, or • we deduct Contract fees and expenses |
Contract fees and expenses we deduct from the Index Options include the product fee, rider fee, contract maintenance charge and withdrawal charge as described in section 6, Expenses. Financial adviser fees that you choose to have us pay from this Contract are described in section 1, The Contract. |
* | Does not apply to Income Payments or RMD payments under our minimum distribution program. |
• | We receive at our Service Center an additional Purchase Payment of $3,000 from you before the end of the Business Day. |
• | When the New York Stock Exchange closes on that Business Day, we determine that the accumulation unit value is $13.25 for the subaccount of the AZL Government Money Market Fund. |
• | We then divide $3,000 by $13.25 and credit your Contract that night with 226.415094 subaccount accumulation units for the AZL Government Money Market Fund. |
• | any Purchase Payment received that day which you allocated to that Index Option, and |
• | any Contract Value transferred into that Index Option. |
• | the Daily Adjustment if this is not the Term End Date and this is an Index Option with the Index Precision Strategy, Index Guard Strategy, or Index Performance Strategy, or |
• | a Credit if this is the Term End Date. |
• | We multiply each Index Option Base by its Credit and add this amount to its Index Option Base. |
• | Then we set each Index Option Value equal to its Index Option Base. |
• | Additional Purchase Payments received on the Term End Date and allocated to this Index Option, and transfers of Variable Account Value or Index Option Value into this Index Option, increase these values by the dollar amount allocated or transferred. |
• | Transfers out of this Index Option reduce these values by the dollar amount removed from the Index Option. |
– | We deduct partial withdrawals you take or financial adviser fees that you choose to have us pay from this Contract (including any withdrawal charge), and deductions we make for Contract fees and expenses from the Index Options proportionately based on the percentage of Contract Value in each Index Option using values determined at the end of the Business Day before we process the withdrawal or deduct the Contract expense. However, if you specifically direct us to take a partial withdrawal from a specific Index Option we reduce that Index Option Value by the dollar amount you specify (including any withdrawal charge). |
– | We then reduce each Index Option Base by the same percentage that the amount withdrawn reduced its associated Index Option Value. |
• | Your Contract Value is $100,000 and you selected two Index Options. The first Index Option has an Index Option Value of $75,000 and an Index Option Base of $72,000. The second Index Option has an Index Option Value of $25,000 and an Index Option Base of $22,000. You take a $10,000 partial withdrawal (including any withdrawal charge). |
• | This partial withdrawal reduces your Index Option Value by the percentage of Contract Value in each Index Option (Index Option Value ÷ Contract Value). |
– | For the first Index Option this percentage is 75% ($75,000 ÷ $100,000) and the $10,000 partial withdrawal reduces this value by $7,500 ($10,000 x 75%). For the second Index Option this percentage is 25% ($25,000 ÷ $100,000) and the $10,000 partial withdrawal reduces this value by $2,500 ($10,000 x 25%). |
– | For the first Index Option this percentage is 10% ($7,500 ÷ $75,000) and the $10,000 partial withdrawal reduces this value by $7,200 ($72,000 x 10%). For the second Index Option this percentage is also 10% ($2,500 ÷ $25,000) and the $10,000 partial withdrawal reduces this value by $2,200 ($22,000 x 10%). |
First Index Option | Second Index Option | ||||||
Index Option Value | Index Option Base | Index Option Value | Index Option Base | ||||
Prior to partial withdrawal | $ 75,000 | $ 72,000 | $ 25,000 | $ 22,000 | |||
$10,000 partial withdrawal | – $7,500 | – $7,200 | – $2,500 | – $2,200 | |||
After partial withdrawal | $ 67,500 | $ 64,800 | $ 22,500 | $ 19,800 |
• Amounts removed from the Index Options during the Term for partial withdrawals you take (including any financial adviser fees that you choose to have us pay from this Contract) and deductions we make for Contract fees and expenses do not receive a Credit on the Term End Date . However, the remaining amount in the Index Options is eligible for a Credit on the Term End Date. |
• You cannot specify from which Index Option or the AZL Government Money Market Fund (if applicable) we deduct Contract fees and expenses; we deduct Contract fees and expenses from each Index Option and the AZL Government Money Market Fund proportionately based on its percentage of Contract Value. However, you can specify from which Index Option or the AZL Government Money Market Fund (if applicable) we deduct a partial withdrawal and any financial adviser fees that you choose to have us pay from this Contract. There is no consistent financial advantage to providing partial withdrawal deduction instructions. |
Crediting Method | If Index Value is less than it was on the Term Start Date (i.e., Index Return is negative): | If Index Value is equal to or greater than it was on the Term Start Date (i.e., Index Return is zero or positive): |
Index Protection Strategy with DPSC | Credit is zero | Credit is equal to the DPSC set on the Term Start Date |
Index Protection Strategy with Cap | Credit is zero | Protection Credit is equal to the Index Return up to the Cap set on the Term Start Date Assume the Cap is 5%. If the Index Return is… • 0%, the Protection Credit is zero. • 4%, the Performance Credit is 4%. • 12%, the Performance Credit is 5%. |
Index Precision Strategy | Performance Credit is equal to the negative Index Return in excess of the 10% Buffer If the Index Return is… • -8%, the Performance Credit is zero. • -12%, the Performance Credit is -2%. | Performance Credit is equal to the Precision Rate set on the Term Start Date |
Index Guard Strategy | Performance Credit is equal to the negative Index Return subject to the -10% Floor If the Index Return is… • -8%, the Performance Credit is -8%. • -12%, the Performance Credit is -10%. | Performance Credit is equal to the Index Return up to the Cap set on the Term Start Date Assume the Cap is 8%. If the Index Return is… • 0%, the Performance Credit is zero. • 6%, the Performance Credit is 6%. • 12%, the Performance Credit is 8%. |
Index Performance Strategy – 1-year Term | Performance Credit is equal to the negative Index Return in excess of the 10% Buffer. If the Index Return for the year is… • -8%, the Performance Credit is zero. • -12%, the Performance Credit is -2%. | Performance Credit is equal to the Index Return up to the Cap set on the Term Start Date Assume the Cap for the 1-year Term is 8%. If the Index Return for the year is… • 0%, the Performance Credit is zero. • 6%, the Performance Credit is 6%. • 12%, the Performance Credit is 8%. |
Crediting Method | If Index Value is less than it was on the Term Start Date (i.e., Index Return is negative): | If Index Value is equal to or greater than it was on the Term Start Date (i.e., Index Return is zero or positive): |
Index Performance Strategy – 3-year Term (available to Contracts issued before April 30, 2021) | Performance Credit is equal to the negative Index Return in excess of the 20% Buffer. If the Index Return for the Term is… • -19%, the Performance Credit is zero. • -24%, the Performance Credit is -4%. | Performance Credit is equal to the Index Return up to any Cap set on the Term Start Date Assume the Cap for the 3-year Term is 80%. If the Index Return for the Term is… • 0%, the Performance Credit is zero. • 65%, the Performance Credit is 65%. • 90%, the Performance Credit is 80%. If instead, the 3-year Term were uncapped the Performance Credit would be 90%. |
Index Performance Strategy – 3-year Term (available to Contracts issued on or after April 30, 2021) | Performance Credit is equal to the negative Index Return in excess of the 10% or 20% Buffer. Assume you select a 3-year Term Index Option with 10% Buffer. If the Index Return for the Term is… • -19%, the Performance Credit is -9%. • -24%, the Performance Credit is -14%. If instead you select a 3-year Term Index Option with 20% Buffer. If 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 were uncapped , then if the Index Return for the Term is… • 0%, the Performance Credit is zero. • 65%, the Performance Credit is 71.5%. • 90%, the Performance Credit is 99%. |
Index Performance Strategy – 6-year Term (available to Contracts issued on or after April 30, 2021) | Performance Credit is equal to the negative Index Return in excess of the 10% Buffer. If the Index Return for the Term is… • -19%, the Performance Credit is -9%. • -24%, the Performance Credit is -14%. | Performance Credit is equal to the Index Return multiplied by the Participation Rate, up to any Cap set on the Term Start Date Assume the Participation Rate is 100% and the Cap is 95%. 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 90%. If instead, the Participation Rate is 110% and the 6-year Term were uncapped , then if 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%. |
You cannot participate in the Optional Reallocation Program if you select a 3-year or 6-year Term Index Option. If you are participating in this program and select a 3-year or 6-year Term Index Option, on the Term Start Date your participation in this program ends and we will not reallocate your 1-year Term Index Option Values. |
Currently the Contract does not offer any variable investment options to which you can allocate money. If we were to offer variable investment options in the future they would be subject to the following provisions. |
• | Dilution of the interests of long-term investors in a |
• | An adverse effect on portfolio management, such as causing a |
• | Increased brokerage and administrative expenses. |
• | Limit transfer frequency (for example, prohibit more than one transfer a week, or more than two a month, etc.). |
• | Restrict the transfer method (for example, requiring all transfers be sent by first-class U.S. mail and rescinding electronic transfer privileges). |
• | Require a minimum time period between each transfer into or out of the same |
• | Refuse transfer requests made on your behalf by an asset allocation and/or market timing service. |
• | Limit the dollar amount of any single Purchase Payment or transfer request to a |
• | Prohibit transfers into specific |
• | Impose other limitations or restrictions to the extent permitted by federal securities laws. |
• | Our monitoring will be 100% successful in detecting all potentially disruptive trading activity. |
• | Revoking electronic transfer privileges will successfully deter all potentially disruptive trading. |
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. |
• | You can provide voting instructions based on the dollar value of the AZL Government Money Market Fund’s shares in your Contract’s subaccount. We calculate this value based on the number and value of accumulation units for your Contract on the record date. We count fractional units. |
• | You receive proxy materials and a voting instruction form. |
Base Contract Expenses (as a percentage of the Charge Base) | |
Product Fee (1) | 1.25% |
Rider Fee for the Income Benefit | 0.70% |
Total Base Contract Expenses | 1.95% |
(1) | Upon the death of the Owner, we continue to assess this product fee under death benefit payment Option B, and with optional payments under death benefit payment Option C, as noted in section |
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 | • First we calculate and accrue the daily product – 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 choose to have us pay financial adviser fees from this Contract, or we deduct Contract fees and expenses, we decrease the Charge Base by the percentage of Contract Value withdrawn (including any withdrawal charge). All withdrawals you take reduce the Charge Base, even Penalty-Free Withdrawals. | • First we process all daily transactions and determine your Contract Value. Daily transactions include any gains/losses due to – We deduct the accrued product |
Example: Contract Value is $125,000; Charge Base is $127,000; a $10,000 partial withdrawal (including any withdrawal charge) would decrease the Charge Base by $10,160. [($10,000 ÷ $125,000) x $127,000] Any increase/decrease to the Charge Base will increase/decrease the daily product | ||
Examples of how we calculate the product |
We do not treat the deduction of the accrued product |
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 |
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. |
• | During the Accumulation Phase (and Income Period, if applicable), if the total Contract Value for all |
• | During the Annuity Phase if the total Contract Value for all |
• | When paying death benefits. |
• | on a dollar for dollar basis from the Contract Value on the Contract Anniversary (or the next Business Day if the Contract Anniversary is a non-Business Day), and |
• | we deduct it proportionately from each |
Calculating a Withdrawal Charge | Example | |||
For purposes of calculating any withdrawal charge, we withdraw Purchase Payments on a “first-in-first-out” (FIFO) basis and we process withdrawal requests as follows. | You make an initial Purchase Payment of | |||
1. First we withdraw from Purchase Payments that we have had for six or more complete years, which is your Contract’s withdrawal charge period. This withdrawal is not subject to a withdrawal charge and it reduces the Withdrawal Charge Basis dollar for dollar. | 1 . Purchase Payments beyond the withdrawal charge period. All payments are still within the withdrawal charge period, so this does not apply. | |||
2. Amounts available as a Penalty-Free Withdrawal. This includes partial withdrawals you take during the Accumulation Phase under the free withdrawal privilege or waiver of withdrawal charge benefit, | 2 . Amounts available as a Penalty-Free Withdrawal. You did not take any other withdrawals this year, so the entire free withdrawal privilege (10% of your total Purchase Payments, or $10,000) is available to you without incurring a withdrawal charge. | |||
3. Next, on a FIFO basis, we withdraw from Purchase Payments within your Contract’s withdrawal charge period and assess a withdrawal charge. Withdrawing payments on a FIFO basis may help reduce the total withdrawal charge because the charge declines over time. We determine your total withdrawal charge by multiplying each payment by its applicable withdrawal charge percentage and then totaling the charges. These withdrawals reduce the Withdrawal Charge Basis. The withdrawal charge as a percentage of each Purchase Payment withdrawn is as follows. | 3 . Purchase Payments within the withdrawal charge period on a FIFO basis. The total amount we withdraw from the first Purchase Payment is ( amount withdrawn) x (1 – withdrawal charge) = the amount you receive, or: $ Next we withdraw from the second Purchase Payment. So far, you received (the amount you receive) ÷ (1 – withdrawal charge) = amount withdrawn, or: $ | |||
Number of Complete Years Since Purchase Payment | Withdrawal Charge Amount | |||
0 1 2 3 4 5 6 years or more | 8.5% 8% 7% 6% 5% 4% 0% |
Calculating a Withdrawal Charge | Example | |
4. Finally we withdraw any Contract earnings. This withdrawal is not subject to a withdrawal charge and it does not reduce the Withdrawal Charge Basis. | 4. Contract earnings. We already withdrew your requested amount, so this does not apply. In total we withdrew |
• Upon a full withdrawal the free withdrawal privilege is not available to you, and we apply a withdrawal charge against Purchase Payments that are still within the withdrawal charge period, including amounts previously withdrawn under the free withdrawal privilege. On a full withdrawal your Withdrawal Charge Basis may be greater than your Contract Value because the following reduce your Contract Value, but do not reduce your Withdrawal Charge Basis: |
– prior Penalty-Free Withdrawals, |
– deductions we make for Contract fees and expenses other than the withdrawal charge, and/or |
– poor performance. |
This also means that upon a full withdrawal you may not receive any money. |
• Withdrawals (including any financial adviser fees that you choose to have us pay from this Contract) may also be subject to ordinary income taxes, and a 10% additional federal tax if you are under age 59 1 ⁄ 2 , and the amount of Contract Value available for withdrawal may be affected by the Daily Adjustment (which can be negative). Please consult with your Financial Professional before requesting us to pay financial adviser fees from this Contract compared to other assets you may have. |
• For tax purposes in most instances, withdrawals from Non-Qualified Contracts are considered to come from earnings first, not Purchase Payments. |
Index Precision Strategy and Index Performance Strategy | Index Guard Strategy | ||
Daily Adjustment Maximum Potential Loss | 99% | 35% | |
(as a percentage of Index Option Value, applies for distributions from an Index Option before any Term End Date) |
• | by taking Annuity Payments; or |
• | when we pay a death benefit. |
* | Does not apply to RMD payments under our minimum distribution program. |
** | Does not apply to Income Payments or RMD payments under our minimum distribution program. |
• | total Contract Value including any Daily Adjustment, |
• | less any final product and rider fees, and contract maintenance charge, and |
• Withdrawals may be subject to a withdrawal charge, state and federal taxation, and a 10% additional federal tax if you are under age 59 1 ⁄ 2 , and the amount of Contract Value available for withdrawal may be affected by the Daily Adjustment (which can be negative) . Please consult with your Financial Professional before requesting us to pay financial adviser fees from this Contract compared to other assets you may have. |
• Joint Owners: We send one check payable to both Joint |
• 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 AZL Government Money Market Fund subaccount until the fund is liquidated. |
The free withdrawal privilege is not available upon a full |
• Ordinary income taxes and tax penalties may apply to systematic withdrawals. |
• The systematic withdrawal program is not available during the Income Period or while you are receiving RMD payments. |
• You should consult a tax adviser before purchasing a Qualified Contract that is subject to RMD payments. |
• The minimum distribution program is not available while you are receiving systematic withdrawals. |
• | the New York Stock Exchange is closed (other than customary weekend and holiday closings); |
• | trading on the New York Stock Exchange is restricted; |
• | an emergency (as determined by the SEC) exists as a result of which disposal of the |
• | during any other period when the SEC, by order, so permits for the protection of Owners. |
* | Including Income Payments and Excess Withdrawals. |
• | The Contract Value less the final product fee, and rider fee (if applicable) on the Annuity Date. |
• | The age of the Annuitant and any joint Annuitant on the Annuity Date. |
• | The gender of the Annuitant and any joint Annuitant where permitted. |
• | The Annuity Option you select. |
• | Your Contract’s interest rate (or current rates, if higher) and mortality table. |
If you do not choose an Annuity Option before the Annuity Date, we make Annuity Payments to the Payee under Annuity Option 2 with ten years of guaranteed monthly payments. |
• If Annuity Payments would be less than $100, we reserve the right to require you to take a full withdrawal and your Contract will then terminate. |
• If on the Annuity Date (which may occur as early as the second |
• For Contracts in the Income Period: We will convert your Income Payments to Annuity Payments if your Contract Value is greater than zero and you take Annuity Payments under Annuity Option 1 or 3 as follows. |
For single Income Payments, if you choose Annuity Option 1 (Life Annuity) the sole Covered Person becomes the sole Annuitant and your Annuity Payments are equal to the greater of: |
– annual Annuity Payments under Annuity Option 1 based on the Contract Value; or |
– the current annual maximum Income Payment available to you. |
For joint Income Payments, if you choose Annuity Option 3 (Joint and Last Survivor Annuity) with Annuity Payments to continue at a level of 100% to the surviving joint Annuitant, the joint Covered Persons become the joint Annuitants and your Annuity Payments are equal to the greater of: |
– annual Annuity Payments under Annuity Option 3 based on the Contract Value; or |
– the current annual maximum Income Payment available to you. |
If you select any other Annuity Option, we will not convert your Income Payments to Annuity Payments. This means you may receive less as Annuity Payments than you would have received as Income Payments. You should consult with your Financial Professional before requesting Annuity Payments. On request we provide illustrations showing you the amount of Annuity Payments you could receive. |
If we convert your Income Payments to Annuity Payments: |
– On the Annuity Date we establish a “remaining value” equal to your Contract Value. Each Annuity Payment reduces the remaining value by the dollar amount paid. Upon the death of the last surviving Annuitant, we will pay any remaining value to the named Beneficiary(s). |
– If you selected the Increasing Income payout option, your Annuity Payments will increase on each Index Anniversary if your selected Index Options receive a DPSC or Protection Credit as described in section 10. |
– If you have a Non-Qualified Contract, these Annuity Payments will receive the benefit of the exclusion ratio, which causes a portion of each Annuity Payment to be non-taxable as described in section 12, Taxes – Taxation of Annuity Contracts. |
Standard Benefits (No Additional Charge) | |||
Name of Benefit | Purpose | Maximum Fee | Brief Description of Restrictions/Limitations |
Free Withdrawal Privilege | Allows you to withdraw up to 10% of your total Purchase Payments each Contract Year without incurring a withdrawal charge. | None | • Only available during the Accumulation Phase. • Not available during the Income Period. • Not available upon a full withdrawal. • Unused free withdrawal amounts not available in future years. • Program withdrawals may be subject to negative Daily Adjustments. • Program withdrawals may be subject to income taxes, including a 10% additional federal tax if taken before age 59 1 ⁄ 2 . |
Automatic Investment Plan (AIP) | Allows you to make automatic Purchase Payments by electronic money transfer from your savings, checking, or brokerage account. | None | • Only available during the Accumulation Phase. • Not available during the Income Period. • Not available to certain Qualified Contracts. • Payments must be on a monthly or quarterly basis. • Subject to applicable Purchase Payment restrictions. • We reserve the right to discontinue or modify the program. |
Optional Reallocation Program for the 1-year Term Index Options | Provides for automatic transfers among the 1-year Term Index Options to help you maintain your selected allocation percentages among these Index Options. | None | • Only available during the Accumulation Phase. • Not available if you select a 3-year or 6-year Term Index Option. • We reserve the right to discontinue or modify the program. |
Systematic Withdrawal Program | Allows you to take automatic withdrawals from your Contract. | None | • Only available during the Accumulation Phase. • Not available during the Income Period or while you are participating in minimum distribution program. • Program withdrawals may be monthly, quarterly, semi-annual or annual, unless you have less than $25,000 in Contract Value, in which case only annual withdrawals are available. • Program withdrawals count against free withdrawal privilege. • Program withdrawals may be subject to negative Daily Adjustments. • Program withdrawals may be subject to withdrawal charges and income taxes, including a 10% additional federal tax if taken before age 59 1 ⁄ 2 . • We reserve the right to discontinue or modify the program. |
Standard Benefits (No Additional Charge) | |||
Name of Benefit | Purpose | Maximum Fee | Brief Description of Restrictions/Limitations |
Minimum Distribution Program | Allows you to automatically take withdrawals to satisfy the minimum distribution requirements (RMD) imposed by the Internal Revenue Code. | None | • Only available during the Accumulation Phase. • Only available to IRA or SEP IRA Contracts. • Program withdrawals count against free withdrawal privilege. • Program withdrawals may be subject to negative Daily Adjustments. • Program withdrawals may be subject to income taxes. • Program withdrawals may be monthly, quarterly, semi-annual or annual, unless you have less than $25,000 in Contract Value, in which case only annual payments are available. • We reserve the right to discontinue or modify the program subject to the requirements of law. |
Financial Adviser Fees | If you have a financial adviser and want to pay their financial adviser fees from this Contract, you can instruct us to withdraw the fee from your Contract and pay it to your Financial Professional or Financial Professional’s firm as instructed. | None | • Only available during the Accumulation Phase. • Financial adviser fees are in addition to the Contract’s fees and expenses. • Deductions for financial adviser fees are treated as withdrawals under the Contract. • Program withdrawals count against free withdrawal privilege. • Program withdrawals may be subject to negative Daily Adjustments. • Program withdrawals may be subject to withdrawal charges and income taxes, including a 10% additional federal tax if taken before age 59 1 ⁄ 2 . • We reserve the right to discontinue or modify the program. |
Waiver of Withdrawal Charge Benefit | Waives withdrawal charges if you become confined to a nursing home. | None | • Only available during the Accumulation Phase. • Confinement must be for at least 90 consecutive days. • Requires physician certification. • Not available if any Owner was confined to a nursing home on the Issue Date. • Program withdrawals count against free withdrawal privilege. • Program withdrawals may be subject to negative Daily Adjustments. • Program withdrawals are not subject to withdrawal charges, but may be subject to income taxes, including a 10% additional federal tax if taken before age 59 1 ⁄ 2 . • State variations may apply. |
Standard Benefits (No Additional Charge) | |||
Name of Benefit | Purpose | Maximum Fee | Brief Description of Restrictions/Limitations |
Income Benefit | Guaranteed lifetime withdrawal benefit providing for yearly Income Payments until the death of the Covered Person(s) if conditions are satisfied. We base the initial Income Payment on the Lifetime Income Percentage and Contract Value. If you choose the Level Income payment option and meet the age requirements stated in section 10, we guarantee your initial annual maximum Income Payment will be at least the Level Income Guarantee Payment Percentage multiplied by your total Purchase Payments adjusted for withdrawals. The automatic annual payment increase feature may increase payments after the Income Benefit Date. With Level Income, payments increase if Contract Value increases from one Income Benefit Anniversary to the next. Section 10 includes examples of the Lifetime Income Percentage Calculation, Excess Withdrawals, and Income Payment increases. | 0.70% (as a percentage of the Charge Base) This rider fee is part of the Base Contract Expenses in the Fee Tables. | • Benefit cannot be removed before third Index Anniversary or after Income Payments have begun. • See Income Benefit Supplement for current terms. • Benefit only available during the Accumulation Phase. • Investment restrictions limit available Index Options during Income Period. • Income Period cannot begin until after the waiting period and reaching age 50. Income Period must begin no later than age 100. • Early and Excess Withdrawals may significantly reduce or end the benefit as indicated in section 10. • Income Payments may be subject to income taxes, including a 10% additional federal tax if taken before age 59 1 ⁄ 2 . • No additional Purchase Payments during the Income Period. • No Income Percentage Increase before age 45. • Availability of joint Income Payments subject to age restrictions. • Annuitizing the Contract will end the benefit, but you may be able to annuitize your annual maximum Income Payment. |
Traditional Death Benefit | Provides a death benefit equal to the greater of the Contract Value, or Guaranteed Death Benefit Value. The Guaranteed Death Benefit Value is total Purchase Payments adjusted for withdrawals. An example of the death benefit provided by the Traditional Death Benefit is included in section The impact of an Excess Withdrawal on the death benefit is included in section 10. | None | • Benefit only available during the Accumulation Phase. • Withdrawals, including any negative Daily Adjustments, may significantly reduce the benefit as indicated in section 1, Financial Adviser Fee Deduction • Restrictions on Purchase Payments may limit the benefit. • Annuitizing the Contract will end the benefit. |
Standard Benefits (No Additional Charge) | |||
Name of Benefit | Purpose | Maximum Fee | Brief Description of Restrictions/Limitations |
Performance Lock | Allows you to capture the current Index Option Value during the Term for an Index Option with the Index Precision Strategy, Index Guard Strategy, or Index Performance Strategy. Can help eliminate doubt about future Index performance and possibly limit the impact of negative performance. A Performance Lock example is included in section 4, Valuing Your Contract — Performance Locks. | None | • Available during the Accumulation Phase. • Not available with the Index Protection Strategy with DPSC or Index Protection Strategy with Cap Index Options. • May be exercised before the Term End Date for an Index Option. • If exercised, will no longer participate in Index performance (positive or negative) for the remainder of the Term, and will not receive a 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 executed when Daily Adjustment has declined, will lock in any loss. • Can be executed only once each Term for each Index Option. • Cannot be exercised for only a portion of the Index Option Value. • Deductions (e.g. withdrawals, fees) decrease the locked Index Option Value. • Cannot transfer locked Index Option Value until the Term End Date, except when exercised for a 3-year or 6-year Term Index Option, provided the Lock Date occurs on or before the second Index Anniversary of a 3-year Term, on or before the fifth Index Anniversary of a 6-year Term. • We will not provide advice or notify you regarding whether you should exercise or the optimal time for doing so. • We will not warn you if you exercise at a sub-optimal time. |
Optional Benefits | |||
Name of Benefit | Purpose | Maximum Fee | Brief Description of Restrictions/Limitations |
Maximum Anniversary Value Death Benefit | Provides a death benefit equal to the greater of the Contract Value, or Guaranteed Death Benefit Value. The Guaranteed Death Benefit Value is the Maximum Anniversary Value. An example of the death benefit provided by the Maximum Anniversary Value Death Benefit, and calculation of the Maximum Anniversary Value is included in section An example of the impact of withdrawals for financial adviser fees that you choose to have us pay from this Contract on the death benefit is included in section 1. The impact of an Excess Withdrawal on the death benefit is included in section 10. | 0.20% (as a percentage of the Charge Base) | • Must be age 75 or younger to elect. • Can only be added to a Contract at issue. • Replaces the Traditional Death Benefit if elected. • Benefit cannot be removed from the Contract. • Only available during the Accumulation Phase. • Withdrawals, including any negative Daily Adjustment, may significantly reduce the benefit as indicated in section 1, Financial Adviser Fee Deduction • 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. |
• | the Index Anniversary that Income Payments can begin once the Eligible Person(s) reaches age 50, |
• | the last Index Anniversary that joint Income Payments will be available because the older Eligible Person is reaching age 100 if there are two Eligible Persons, and |
• | the last Index Anniversary that Income Payments will be available because the younger Eligible Person is reaching age 100. |
• 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. |
• | The Level Income Guarantee Payment Percentage based on the Covered Person’s current age (or the younger Covered Person’s current age for joint payments) multiplied by total Purchase Payments reduced for withdrawals you took. Withdrawals reduce total Purchase Payments by the percentage of Contract Value withdrawn (including any withdrawal charge), determined at the end of each Business Day. All withdrawals you take reduce your total Purchase Payments, even Penalty-Free Withdrawals. However, we do not reduce your total Purchase Payments for deductions we make for Contract fees and expenses. |
• | The Lifetime Income Percentage for the payment type you select multiplied by the Contract Value determined at the end of the Business Day after we deduct the product fee, rider fee, and contract maintenance charge and apply any Credits, but before we make any Income Payments or Excess Withdrawals. |
• If you have Contract Value in a 3-year or 6-year Term Index Option and 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. This means you may not receive the full benefit of the Credit that you would have received if you had waited until the Term End Date to begin Income Payments. |
• We use Contract Value to calculate your initial annual maximum Income Payment, and Income Payment increases under the Level Income payment option . Negative Index Option performance, withdrawals you take, and deductions we make for Contract fees and expenses decrease the Contract Value, which reduces the initial annual maximum Income Payment available to you, and the likelihood you will receive Income Payment increases if you select the Level Income payment option. |
Covered Person’s age (or younger Covered Person’s age for joint payments) on the Income Benefit Date | Level Income Guarantee Payment Percentage |
50 | 2.23% |
51 | 2.28% |
52 | 2.33% |
53 | 2.39% |
54 | 2.44% |
55 | 2.50% |
56 | 2.57% |
57 | 2.64% |
58 | 2.71% |
59 | 2.78% |
60 | 2.86% |
61 | 2.95% |
62 | 3.04% |
63 | 3.13% |
64 | 3.23% |
65 | 3.34% |
66 | 3.45% |
67 | 3.58% |
68 | 3.71% |
69 | 3.85% |
70 | 4.00% |
71 | 4.17% |
72 | 4.35% |
73 | 4.55% |
74 | 4.77% |
75 | 5.00% |
76 | 5.27% |
77 | 5.56% |
78 | 5.89% |
79 | 6.25% |
80 | 6.67% |
• For Qualified Contracts: If we calculate a required minimum distribution (RMD) based on this Contract, after making all Income Payments for the calendar year we determine whether this calendar year’s total RMD has been satisfied by these payments and any Excess Withdrawals. If the RMD amount for this Contract has not been satisfied, we send you this remaining amount as one RMD payment by the end of the calendar year. We consider this payment to be a withdrawal, but it is not an Excess Withdrawal and it is not subject to a withdrawal charge. |
• For annuitization: If on the Annuity Date you are receiving Income Payments and your Contract Value is positive, we will convert your Income Payments to Annuity Payments if you take Annuity Payments under Annuity Option 1 or 3. If you select any other Annuity Option, we will not convert your Income Payments to Annuity Payments. This means that if you annuitize your Contract you may receive less as Annuity Payments than you would have received as Income Payments. For more information, see section 8, The Annuity Phase – When Annuity Payments Begin. |
• | you are age 58 and the Income Percentages are 4.60% for Level Income, and 3.60% for Increasing Income, |
• | the Variable Account Value for the additional Purchase Payment is now $2,002.50, and |
• | the Contract Value after application of the additional Purchase Payment, Credits and after deducting all Contract fees and expenses is $25,000. |
• | Lifetime Income Percentages for the additional Purchase Payment are 4.60% for Level Income and 3.60% for Increasing Income. |
• | The Variable Account Value’s percentage of total Contract Value is 8.01% ($2,002.50 ÷ $25,000), which means the initial Purchase Payment is 91.99% of total Contract Value (100% - 8.01%). |
– | for Level Income: (5.20% x 91.99%) + (4.60% x 8.01%) = 4.78% + 0.37% = 5.15% |
– | for Increasing Income: (4.20% x 91.99%) + (3.60% x 8.01%) = 3.86% + 0.29% = 4.15% |
If you select Level Income, you receive the greater of…. | If you select Increasing Income, you receive… |
• Level Income Guarantee Payment Percentage multiplied by total Purchase Payments reduced proportionately for withdrawals you took, or: (2.71% x $22,000) = $596.20 • Lifetime Income Percentage multiplied by the Contract Value, or: (5.15% x $25,000) = $1,287.50 | • Lifetime Income Percentage multiplied by the Contract Value, or: (4.15% x $25,000) = $1,037.50 |
If you select Level Income, you receive the greater of…. | If you select Increasing Income, you receive… |
• Level Income Guarantee Payment Percentage multiplied by total Purchase Payments reduced proportionately for withdrawals you took, or: (2.71% x $20,000) = $542.00 • Lifetime Income Percentage multiplied by the Contract Value, or: (5.20% x $22,997.50) = $1,195.87 | • Lifetime Income Percentage multiplied by the Contract Value, or: (4.20% x $22,997.50) = $965.90 |
When it increases the initial Income Payment | When it does not increase the initial Income Payment |
• Assume your Contract Value decreases to $50,000 due to negative performance. You would receive the greater of: – Level Income Guarantee Payment Percentage multiplied by total Purchase Payments reduced proportionately for withdrawals you took, or: (4.00% x $100,000) = $4,000.00 – Lifetime Income Percentage multiplied by the Contract Value, or: (7.70% x $50,000) = $3,850 | • Assume your Contract Value decreases to $70,000 due to negative performance. You would receive the greater of: – Level Income Guarantee Payment Percentage multiplied by total Purchase Payments reduced proportionately for withdrawals you took, or: (4.00% x $100,000) = $4,000.00 – Lifetime Income Percentage multiplied by the Contract Value, or: (7.70% x $70,000) = $5,390 |
Excess Withdrawal | Contract Value | Guaranteed Death Benefit Value for a Contract with the Traditional Death Benefit | Guaranteed Death Benefit Value for a Contract with the Maximum Anniversary Value Death Benefit | Next anniversary’s annual maximum Income Payment | ||||
Prior to withdrawal | $ 100,000 | $ 90,000 | $ 105,000 | $ 4,800 | ||||
$5,000 withdrawal | – ($5,000/ 100,000) | – ($5,000/ 100,000) | – ($5,000/ 100,000) | |||||
x 90,000)] | x 105,000)] | x 4,800)] | ||||||
– $5,000 | = – $4,500 | = – $5,250 | = – $240 | |||||
After withdrawal | $ 95,000 | $ 85,500 | $ 99,750 | $ 4,560 |
If we increase the Contract Value to equal the death benefit due to a spousal continuation of the Contract during the last Income Benefit Year, we also subtract the amount of this increase from the Contract Value on the next Income Benefit Anniversary when determining annual payment increases under the Level Income option. |
• | During the Accumulation Phase and before the Income Period, the Business Day we process your request to remove this benefit from your Contract (the rider termination date). |
• | The Business Day all Eligible Persons or Covered Persons are removed from the Contract because they no longer meet the requirements (Owner, Annuitant or sole Beneficiary) stated in section 3. If this occurs after the Income Benefit Date, Income Payments stop when the last Covered Person is removed from the Contract. |
• | The Index Anniversary upon which the younger Eligible Person reaches age 100 if it occurs before the Income Benefit Date. |
• | The Business Day we process your request for a full withdrawal, other than a full withdrawal caused by an Income Payment. |
• | The Income Benefit Date or an Income Benefit Anniversary if the annual maximum Income Payment is less than $100. |
• | Upon the death of an Owner (or Annuitant if the Owner is a non-individual), the end of the Business Day we first receive a Valid Claim from any one Beneficiary. However, if a federally recognized spouse is an Eligible Person or Covered Person and continues this Contract, the Income Benefit also continues. |
• | During the Accumulation Phase and before the Income Benefit Date, the Income Benefit ends on the date of death of the last surviving Eligible Person. |
• | During the Income Period, the Income Benefit ends on the date of death of the last surviving Covered Person. |
• | The Business Day the Contract ends. |
• | We increase it by the dollar amount of any additional Purchase Payments. |
• | We reduce it by the percentage of any Contract Value you withdraw (including any withdrawal charge). |
• | its current value after processing any additional Purchase Payments, or withdrawals you take (including any withdrawal charge), or |
• | the Contract Value determined at the end of the Business Day after we process all daily transactions including Credits, any additional Purchase Payments, withdrawals you take including any withdrawal charges, and deductions we make for other Contract fees and expenses. Contract Value reflects the Daily Adjustment if you select a 3-year or 6-year Term Index Option and this anniversary is not a Term End Date. Negative Index Option performance, withdrawals you take, and deductions we make for Contract fees or expenses decrease the Contract Value and reduce the likelihood of receiving increases to the Maximum Anniversary Value. |
• | the older Determining Life’s 91st birthday, or |
• | the end of the Business Day we receive the first Valid Claim from any one Beneficiary. |
Contract Value | Maximum Anniversary Value | |||
Issue Date | $ 100,000 | $ 100,000 | ||
1 st Quarterly Anniversary | $ 99,250 | $ 100,000 | ||
2 nd Quarterly Anniversary | $ 99,975 | $ 100,000 | ||
3 rd Quarterly Anniversary | $ 100,125 | $ 100,125 | ||
4 th Quarterly Anniversary/ Index Anniversary | $ 99,995 | $ 100,125 |
• | On the Issue Date the Maximum Anniversary Value is equal to the initial Purchase Payment of $100,000. |
• | On the 1 st and 2 nd Quarterly Anniversaries the Contract Value is less than the Maximum Anniversary Value, so the Maximum Anniversary Value neither increases, nor decreases. |
• | On the 3 rd Quarterly Anniversary the Contract Value is greater than the Maximum Anniversary Value, so we increase the Maximum Anniversary Value to equal the $100,125 Contract Value. The Maximum Anniversary Value will stay at $100,125 until the Contract Value on a Quarterly Anniversary is greater than this amount or you make an additional Purchase Payment (either of which will increase the Maximum Anniversary Value), or you take a withdrawal (which will decrease the Maximum Anniversary Value). |
During the Income Period: |
• You cannot make additional Purchase Payments. If your Contract includes the Traditional Death Benefit this means the Guaranteed Death Benefit Value no longer increases. |
• Index Precision Strategy, Index Performance Strategy, and Index Guard Strategy are no longer available. This may limit your Contract’s performance potential and the Guaranteed Death Benefit Value if your Contract includes the Maximum Anniversary Value Death Benefit. Income Payments and Excess Withdrawals also decrease your Contract Value, which also reduces the likelihood of locking in investment gains to the Guaranteed Death Benefit Value if your Contract includes the Maximum Anniversary Value Death Benefit. |
• Each Income Payment and any Excess Withdrawal reduces the Guaranteed Death Benefit Value by the percentage of Contract Value withdrawn (including any withdrawal charge) , which means this value may be reduced by more than the amount withdrawn . Taking Excess Withdrawals may also cause your selected death benefit to end prematurely. |
• | Guaranteed Death Benefit Value determined at the end of the Business Day we receive the first Valid Claim from any one Beneficiary, or |
• | Contract Value determined at the end of the Business Day during which we receive his or her Valid Claim. |
• | If a Determining Life dies before you, we do not pay a death benefit to the Beneficiary(s) but we may increase the Contract Value if the Traditional Death Benefit or Maximum Anniversary Value Death Benefit are still in effect. At the end of the Business Day we receive due proof of a Determining Life’s death we increase the Contract Value to equal the Guaranteed Death Benefit Value if greater, and your selected death benefit ends. We allocate any Contract Value increase to the |
• | Upon your death your Beneficiary(s) receive the Contract Value determined at the end of the Business Day during which we receive each Beneficiary’s Valid Claim. |
• | The Business Day before the Annuity Date. |
• | The Business Day that the Guaranteed Death Benefit Value and Contract Value are both zero. |
• | Upon the death of a Determining Life, the end of the Business Day we receive a Valid Claim from all Beneficiaries if you and the Determining Life are the same individuals, or if you and the Determining Life (Lives) are different individuals and die simultaneously as defined by applicable state law or regulation. |
• | Upon the death of a Determining Life, the end of the Business Day we receive due proof of the Determining Life’s death if you and the Determining Life (Lives) are different individuals and do not die simultaneously as defined by applicable state law or regulation. |
• | Upon the death of an Owner (or Annuitant if the Owner is a non-individual), the end of the Business Day we receive the first Valid Claim from any one Beneficiary, if the Owner (or Annuitant) is no longer a Determining Life. |
• | The Business Day the Contract ends. |
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(s). |
• | he or she becomes the new Owner and may exercise all of the Owner’s rights, including naming a new Beneficiary or Beneficiaries; |
• | he or she is subject to any remaining withdrawal charge; and |
• | upon the surviving spouse’s death their Beneficiary(s) receive the Contract Value determined at the end of the Business Day during which we receive a Valid Claim from each Beneficiary. |
We may issue the following type of Qualified Contract to a qualified retirement plan. |
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. |
Simplified Employee Pension (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. |
1) | distributions made on or after the date you (or the Annuitant as applicable) reach age 59 1 ⁄ 2 ; |
2) | distributions following your death or disability (or the Annuitant as applicable) (for this purpose disability is as defined in Section 72(m)(7) of the Code); |
3) | distributions paid in a series of substantially equal payments made annually (or more frequently) for your life (or life expectancy) or joint lives of you and your designated Beneficiary; |
4) | distributions made to you after separation from service after reaching age 55 (does not apply to IRAs); |
5) | distributions made to you to the extent such distributions do not exceed the amount allowed as a deduction under Code Section 213 for amounts paid during the tax year for medical care; |
6) | distributions made on account of an IRS levy upon the Qualified Contract; |
7) | distributions from an IRA for the purchase of medical insurance (as described in Section 213(d)(1)(D) of the Code) for you and your spouse and dependents if you have received unemployment compensation for at least 12 weeks (this exception will no longer apply after you have been re-employed for at least 60 days); |
8) | distributions from an IRA made to you, to the extent such distributions do not exceed your qualified higher education expenses (as defined in Section 72(t)(7) of the Code) for the tax year; |
9) | distributions from an IRA which are qualified first-time homebuyer distributions (as defined in Section 72(t)(8) of the Code); |
10) | distributions made to an alternate Payee pursuant to a qualified domestic relations order (does not apply to an IRA); |
11) | distributions made to a reservist called to active duty after September 11, 2001, for a period in excess of 179 days (or for an indefinite period), from IRAs or amounts attributable to elective deferrals under a 401(k) plan made during such active period; and |
12) | distributions made during the payment period starting on the birth of a child or the finalization of an adoption (up to $5,000). |
1) | paid on or after you reach age 59 1 ⁄ 2 ; |
2) | paid after you die; |
3) | paid if you become totally disabled (as that term is defined in Section 72(m)(7) of the Code); |
4) | paid in a series of substantially equal payments made annually (or more frequently) for your life (or life expectancy) or joint lives of you and your designated Beneficiary; |
5) | paid as annuity payments under an immediate annuity; or |
6) | that come from Purchase Payments made before August 14, 1982. |
• | you might have to pay a withdrawal charge on your previous contract, |
• | there is a new withdrawal charge period for this Contract, |
• | the benefits may be different, and |
• | you no longer have access to any benefits from your previous contract. |
• | a series of substantially equal payments made at least annually for the life or life expectancy of the participant or joint and last survivor expectancy of the participant and a designated Beneficiary, or for a specified period of ten years or more; or |
• | RMDs; or |
• | any part of a distribution not included in gross income (for example, returns of after-tax contributions); or |
• | hardship withdrawals. |
• | overhead, |
• | legal fees, |
• | accounting fees, |
• | Financial Professional training, |
• | compensation for the ALFS management team, and |
• | other expenses associated with the Contracts. |
2019 | 2020 | 2021 | ||||
Commission paid | $ 94,454,565.90 | $ 112,016,744.84 | $ 166,144,512.60 |
2019 | 2020 | 2021 | ||||
Commission paid | $ 50,675,931.19 | $ 75,056,337.24 | $ 118,628,934.67 |
• | marketing services and increased access to their Financial Professionals; |
• | sales promotions relating to the Contracts; |
• | costs associated with sales conferences and educational seminars; |
• | the cost of client meetings and presentations; and |
• | other sales expenses incurred by them. |
• | issuance and maintenance of the Contracts, |
• | maintenance of Owner records, and |
• | routine customer service including: |
– | processing of Contract changes, |
– | processing withdrawal requests (both partial and total), and |
– | processing requests for fixed annuity payments. |
• | Walter R. White, President and Chief Executive Officer (1) |
• | Jasmine M. Jirele , President and Chief Executive Officer (2) |
• | William E. Gaumond, Senior Vice President, Chief Financial Officer and Treasurer |
• | Eric J. Thomes, Senior Vice President, Chief Distribution Officer |
(1) | Mr. White served as President and Chief Executive Officer until September 1, 2021, he then transitioned to Senior Advisor until his retirement on December 31, 2021. |
(2) | Ms. Jirele has served as President and Chief Executive Officer since September 1, 2021, prior to that she was the Senior Vice President, Chief Growth Officer. |
• | providing total compensation opportunities that are competitive with the levels of total compensation available at the large diversified financial services companies with which Allianz Life most directly competes in the marketplace; |
• | setting performance metrics and objectives for variable compensation arrangements that reward executives for attaining both annual targets and long-term business objectives, thereby providing individual executives with the opportunity to earn above-average compensation by achieving above-average results; |
• | establishing equity-based arrangements that align executives’ financial interests with those of Allianz SE by ensuring executives have a material financial stake in the equity value of Allianz SE and the business success of its affiliates; and |
• | structuring compensation packages and outcomes to foster internal pay equity. |
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. |
• | In general, establish the compensation philosophy and strategy of Allianz Life and oversee the development and implementation of compensation, benefit, and perquisite programs for corporate executives consistent with the principles of ensuring that leadership is compensated effectively in a manner consistent with the stated compensation strategy, internal equity considerations, competitive practices, shareholder interests, and the requirements of any applicable regulatory bodies in order to attract and retain high-quality leadership. This responsibility includes periodic review of Allianz Life’s compensation programs to pursue certain goals, with the expectation that changes will be made periodically to ensure these goals are attained. |
• | Review and approve the establishment of, or material modification to, any executive incentive compensation plans or programs for Allianz Life. |
• | Review and approve any special benefits or perquisites in effect for, or offered to, any prospective, current or former Allianz Life employee, regardless of the employee’s level or assignment within Allianz Life. Such benefits and perquisites are those that are unusual or different from the benefits offered to all similarly-situated employees. |
• | Review and approve any employment agreements proposed to be made with any prospective or current employee of Allianz Life. |
• | Review and approve any individual severance agreement with any Allianz Life officer. This does not include an arrangement where the employee receives severance or incentive payments under existing terms of a broad-based benefit or compensation plan. |
• | Oversee Allianz Life’s compliance with regulations with respect to compensation matters and adopt and monitor adherence to global and local process requirements and timelines, including those required under the Corporate Rules (as defined under the Allianz Life Standard for Corporate Rules) mandated by Allianz SE. |
• | evaluating the compensation data from industry groups, national executive pay surveys, and other sources for the NEOs and other executive officers as appropriate; |
• | gathering and correlating performance ratings and reviews for individual executive officers, including the NEOs; |
• | reviewing executive compensation recommendations against appropriate market data and for internal consistency and equity; and |
• | reporting to, and answering requests for information from, the Compensation Committee. |
• | reward the performance of participants who have made significant contributions to the achievement of annual goals and objectives; |
• | provide an incentive that will encourage future superior individual performance; and |
• | encourage the retention of employees who have demonstrated exceptional performance and/or are anticipated to significantly contribute to the long-term success of Allianz Life. |
• | reward the performance of participants who have made significant contributions to the achievement of their company’s annual goals and objectives, |
• | provide an incentive that will encourage future superior individual performance, and |
• | encourage the retention of employees who have demonstrated exceptional performance and/or are anticipated to significantly contribute to the long-term success Allianz. |
Name and Principal Position (a) | Year (b) | Salary (c) | Bonus (d) | Stock Awards (e) (3) | Non-Equity Incentive Plan Compensation (g) | All Other Compensation (i) (4) | Total (j) |
Walter R. White President and Chief Executive Officer | 2021 | $865,100 | $300,000 | $2,335,770 | $1,557,180 | $22,665 | $5,080,715 |
Jasmine M. Jirele (1,2) President and Chief Executive Officer | 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 | 2021 | $475,900 | $300,000 | $ 770,958 | $ 513,972 | $22,437 | $2,083,267 |
Eric J. Thomes Senior Vice President, Chief Distribution Officer | 2021 | $535,500 | $320,000 | $ 867,510 | $ 578,340 | $22,548 | $2,323,898 |
Neil H. McKay Senior Vice President, Chief Actuary | 2021 | $510,000 | $ 50,000 | $ 926,200 | $ 550,800 | $24,397 | $2,061,397 |
Gretchen Cepek Senior Vice President, General Counsel and Secretary | 2021 | $469,500 | $ 110,000 | $ 733,825 | $ 422,550 | $22,167 | $1,758,042 |
(1) | Represents compensation paid during her time as Senior Vice President, Chief Growth Officer and President and Chief Executive Officer. |
(2) | A retention bonus of $800,000 will be paid over four years in increments of $200,000 with the first payment paid in March 2019 and the final payment in 2022 so long as Ms. Jirele remains employed by Allianz Life. |
(3) | Represents the grant date fair value of the RSUs issued pursuant to the AEI. The RSUs vest over a four-year period. The RSUs issued in 2022 for the 2021 performance year have a March 2026 exercise date. The grant price of the RSUs was the arithmetic average of the closing prices of an Allianz SE share in the electronic cash market trading system Xetra (or any successor system) on the date of grant and the nine immediately preceding trading days, less the present value of dividends expected to be paid on one Allianz SE share over the vesting period, and less the fair |
value of the payout restrictions deriving from the vesting period and the payout cap. These numbers show the amount realized for financial reporting purposes as calculated in accordance with the FASB ASC Topic 718. Under FASB ASC Topic 718, the grant date fair value is calculated using the closing market price of the common stock of Allianz SE on the date of grant, which is then recognized over the requisite service period of the award. |
(4) | The following table provides additional details regarding compensation found in the “All Other Compensation” column. |
Name | Year | Spousal Travel (5) | Milestone/ Anniversary/ Recognition (6) | Life Insurance Premiums | Employer Match to 401(k) Plan | ASAAP Contribution (7) | Total |
Walter R. White | 2021 | -- | -- | $915 | $21,750 | -- | $22,665 |
Jasmine M. Jirele | 2021 | -- | $ 350 | $416 | $19,500 | $2,250 | $22,516 |
William E. Gaumond | 2021 | -- | -- | $687 | $19,500 | $2,250 | $22,437 |
Eric J. Thomes | 2021 | -- | -- | $798 | $19,500 | $2,250 | $22,548 |
Neil H. McKay | 2021 | $200 | $1,700 | $747 | $21,750 | -- | $24,397 |
Gretchen Cepek | 2021 | -- | -- | $417 | $21,750 | -- | $22,167 |
(5) | Represents reimbursement or payments made to defray the costs of a spouse’s travel. |
(6) | Represents Milestone Anniversary Program, which pays a bonus at three and five year anniversaries, and then every five years thereafter. |
(7) | Represents company matching contribution to the Allianz Supplemental Asset Accumulation Plan for deferrals in excess of IRS compensation limit. |
Name (a) | Grant Date (b) | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards (2,3) | ||||
Threshold ($) (c) | Target ($) (d) | Maximum ($) (e) | Threshold ($) (f) | Target ($) (g) | Maximum ($) (h) | ||
Walter R. White | 3/4/2022 | ||||||
RSUs (under AEI) | $0 | $1,557,180 | $7,007,310 | ||||
AIP Award | $0 | $1,038,120 | $1,557,180 | ||||
Jasmine M. Jirele | 3/4/2022 | ||||||
RSUs (under AEI) | $0 | $ 712,202 | $3,204,909 | ||||
AIP Award | $0 | $ 474,802 | $ 949,604 | ||||
William E. Gaumond | 3/4/2022 | ||||||
RSUs (under AEI) | $0 | $ 513,972 | $2,312,874 | ||||
AIP Award | $0 | $ 342,648 | $ 513,972 | ||||
Eric J. Thomes | 3/4/2022 | ||||||
RSUs (under AEI) | $0 | $ 578,340 | $2,602,530 | ||||
AIP Award | $0 | $ 385,560 | $ 578,340 | ||||
Neil H. McKay | 3/4/2022 | ||||||
RSUs (under AEI) | $0 | $ 550,800 | $2,478,600 | ||||
AIP Award | $0 | $ 367,200 | $ 550,800 | ||||
Gretchen Cepek | 3/4/2022 | ||||||
RSUs (under AEI) | $0 | $ 422,550 | $1,901,475 | ||||
AIP Award | $0 | $ 281,700 | $ 422,550 |
(1) | The target and maximum columns show the target award and maximum award for 2021 for each NEO under the AIP. There is no threshold amount for any participant in the AIP. The actual 2021 awards granted to the NEOs are listed in the Non-Equity Incentive Compensation column of the Summary Compensation Table. AIP target and maximum awards are a pre-designated percentage of base salary determined at the executive’s level. |
(2) | RSUs have a vesting schedule as disclosed in the footnotes to the Summary Compensation Table. See “Outstanding Equity Awards at December 31, 2021” for disclosure regarding the number of RSUs that are unvested as of December 31, 2021. |
(3) | The target and maximum columns show the target award and maximum award for 2021 for each NEO under the AEI. There is no threshold amount for any participant in the AEI. The actual 2021 awards granted to the NEOs are listed in the Stock Awards column of the Summary Compensation Table. |
Name (a) | RSUs | |
Number of RSUs That Have Not Vested (g) (1,2) | Market Value of RSUs That Have Not Vested (h) (3) | |
Walter R. White | ||
7,030 | $1,637,920 | |
5,239 | $1,220,635 | |
6,097 | $1,420,540 | |
8,139 | $1,896,306 | |
Jasmine M. Jirele | ||
0 | $ 0 | |
1,467 | $ 341,796 | |
1,886 | $ 439,419 | |
2,407 | $ 560,807 | |
William E. Gaumond | ||
2,039 | $ 475,067 | |
1,538 | $ 358,339 | |
1,948 | $ 453,865 | |
2,463 | $ 573,854 | |
Eric J. Thomes | ||
492 | $ 114,631 | |
457 | $ 106,476 | |
1,474 | $ 343,427 | |
3,625 | $ 844,589 | |
Neil H. McKay | ||
2,203 | $ 513,277 | |
1,731 | $ 403,306 | |
2,123 | $ 494,638 | |
2,503 | $ 583,174 | |
Gretchen Cepek | ||
1538 | $ 358,339 | |
1,413 | $ 329,215 | |
1,512 | $ 352,281 | |
1,789 | $ 416,819 |
(1) | Represents unvested RSUs issued pursuant to the AEI. RSUs issued under the AEI during 2021 are subject to a four-year vesting period from the grant date. At the end of the respective vesting period, the RSUs are exercised uniformly for all participants, provided they remain employed by Allianz Life or terminate after retirement or early retirement eligibility, or under certain other circumstances. Vesting and exercise may accelerate if a participant leaves employment under other “good leaver” circumstances set forth in the AEI. |
(2) | For each of the NEOs, the number of RSUs listed on the first line were exercised in 2022, the RSUs listed on the second line will exercise in 2023, the RSUs listed on the third line will exercise in 2024, and the RSUs listed on the fourth line will exercise in 2025. |
(3) | Based on an assumed stock price of $232.99 per share, which was the arithmetic average of the closing prices of an Allianz SE share in the electronic cash market trading system Xetra (or any successor system) on December 30, 2021 and the nine immediately preceding trading days, converted from Euros into U.S. dollars. |
Name | Stock Awards | |
Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($) (1) | |
Walter R. White | 8,161 | $2,004,544 |
Jasmine M. Jirele | - | $ 0 |
William E. Gaumond | 1,452 | $ 356,647 |
Eric J. Thomes | 617 | $ 151,551 |
Neil H. McKay | 2,550 | $ 626,343 |
Gretchen Cepek | 1,917 | $ 470,863 |
(1) | Represents Allianz SE RSUs that were exercised during 2021 pursuant to the AEI. Amounts realized were paid in cash. |
NEOs | Lump Sum Payment |
Walter R. White (1) | $1,730,200 |
Jasmine M. Jirele | $1,125,000 |
William E. Gaumond | $ 713,850 |
Eric J. Thomes | $ 803,250 |
Neil H. McKay | $ 765,000 |
Gretchen Cepek | $ 704,250 |
(1) | Mr. White is not eligible to receive payments pursuant to the Executive Severance Plan. See “Allianz Life Executive Severance Agreement” for information regarding severance payments that Mr. White is eligible to receive upon termination of service. |
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 |
Walter R. White (3) Former President and Chief Executive Officer; Non-Independent Director | N/A | N/A |
Anna Sophie Herken (2) Non-Independent Director | N/A | N/A |
Howard E. Woolley Independent Director | $60,000 | $60,000 |
Kevin E. Walker Independent Director | $60,000 | $60,000 |
Udo Frank Independent Director | $90,000 | $90,000 |
(1) | Represents cash compensation provided to our independent directors that is formalized in the Non-Employee Director Compensation Plan for the year ended December 31, 2021. |
(2) | Mr. Wimmer (and his predecessor, Jacqueline Hunt) and Ms. Herken did not receive any compensation for their services as directors since they are employed by one of our affiliates. |
(3) | As employee directors, Ms. Jirele and Messrs. White and Gaumond did not receive any compensation for their service as directors. The compensation Ms. Jirele and Messrs. White and Gaumond received as executive officers of Allianz Life is disclosed in the Summary Compensation Table as set forth herein. |
• | Difficult Economic Conditions. Our financial condition is materially affected by conditions in the global capital markets and the economy generally. During an economic downturn, the demand for our financial insurance products and services could be adversely affected. In addition, an economic downturn could cause the number and amount of full and partial withdrawals under our insurance products to increase significantly, and owners of our insurance products may choose to defer making purchase payments or paying insurance premiums or stop them altogether. |
• | Unfavorable Interest Rate Environments. During periods of declining interest rates, we may experience financial losses as the spread between interest rates that we credit to customers under our insurance products and returns on our investments tighten. The ongoing low interest rate environment presents challenges for us and other life insurance companies, as it has generally reduced investment returns, raised the value of future obligations, and challenged asset-liability matching. During periods of increasing interest rates, we may experience financial losses due to increases in full and partial withdrawals under our insurance products as our customers choose to forgo insurance protection in favor of potentially higher returns. Although we take measures to manage economic risks associated with different interest rate environments, we may not be able to fully mitigate those risks. |
• | Losses on Fixed Maturity Investments. Our fixed maturity investments are subject to interest rate risk and credit risk. Interest rate risk refers to how the values of our fixed maturity investments fluctuate in response to changes in market interest rates. Increases and decreases in prevailing interest rates generally result in decreases and increases, respectively, in the values of our fixed maturity investments. Credit risk refers to the risk that a counterparty will default on its commitments to us under a fixed maturity investment. See “Defaults by Counterparties” below. |
• | Losses on Equity Investments. Our equity investments are generally valued based on quoted market prices and are subject to market risk. Market risk refers to how market prices for equity investments are subject to fluctuation. A downward fluctuation in the market price for an equity investment could result in losses upon the sale of that investment. Fluctuations in market prices may result from, among other things, actual or perceived changes in the attractiveness of specific investments or in general market conditions. |
• | Impairments of Other Financial Institutions. We routinely execute transactions with counterparties in the financial services industry, including brokers, dealers, commercial banks, investment banks, insurers, reinsurers and other investment and financial institutions. A disruption to, or decline in the financial condition of, such financial institutions may expose us to financial losses. |
• | Payments through Guaranty Associations. When an insurance company becomes insolvent, state insurance guaranty associations have the right to assess other insurance companies doing business in their state for funds to pay obligations to policyholders of the insolvent company, up to the state-specified limit of coverage. The future failure of a large life, health or annuity insurer could trigger assessments which we would be obligated to pay. Further, amounts for historical insolvencies may be assessed over many years, and there can be significant uncertainty around the total obligation for a given insolvency. |
• | Ineffectiveness of Risk Management Policies. Our risk management policies and procedures intended to identify, monitor and manage economic risks may not be fully effective at mitigating our risk exposure in all market environments or against all types of risk. This could cause us to incur investment losses or cause our hedging and other risk management strategies to be ineffective. |
• | reductions in new sales of insurance products, annuities and other investment products; |
• | increases in our cost of capital or limitations on our access to sources of capital; |
• | harm to our relationships with distributors and sales specialists; |
• | pressure on us to reduce prices or increase crediting rates for many of our insurance products; and |
• | harm to our ability to obtain reinsurance or obtain reasonable pricing for reinsurance. |
• | training and educating our employees regarding our obligations relating to confidential information; |
• | monitoring changes in state or federal privacy and compliance requirements; |
• | drafting appropriate contractual provisions into any contract that raises proprietary and confidentiality issues; |
• | maintaining secure storage facilities for tangible records; |
• | limiting access to electronic information; and |
• | in the event of a security breach, providing credit monitoring or other services to affected customers. |
• | Voluntary and government mandated pandemic mitigation efforts, such as prolonged remote working arrangements and economic shutdowns, and employees’ ability or willingness to fulfill their responsibilities during the pandemic, may disrupt our ability to administer our insurance contracts (including our ability to timely process applications, transactions, and payments and to calculate values) and may disrupt the services provided by third-parties upon which we rely to administer our insurance contracts. Extended periods of remote work arrangements could introduce additional operational risk, including but not limited to cybersecurity risks, and impair our ability to effectively manage our business. |
• | Longer-term deviations from the mortality, customer behavior, expenses, and other assumptions that we use to price our products and support our obligations. |
• | sponsor, endorse, sell or promote Allianz products. |
• | recommend that any person invest in Allianz products or any other securities. |
• | have any responsibility or liability for or make any decisions about the timing, amount or pricing of Allianz products. |
• | have any responsibility or liability for the administration, management or marketing of Allianz products. |
• | STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, express or implied, and exclude any liability about: |
• | The results to be obtained by Allianz products, the owner of Allianz products or any other person in connection with the use of the EURO STOXX 50 and the data included in the EURO STOXX 50; |
• | The accuracy, timeliness, and completeness of the EURO STOXX 50 and its data; |
• | The merchantability and the fitness for a particular purpose or use of the EURO STOXX 50 and its data; |
• | The performance of Allianz products generally. |
• | STOXX, Deutsche Börse Group and their licensors, research partners or data providers give no warranty and exclude any liability, for any errors, omissions or interruptions in the EURO STOXX 50 or its data; |
• | Under no circumstances will STOXX, Deutsche Börse Group or their licensors, research partners or data providers be liable (whether in negligence or otherwise) for any lost profits or indirect, punitive, special or consequential damages or losses, arising as a result of such errors, omissions or interruptions in the EURO STOXX 50 or its data or generally in relation to Allianz products, even in circumstances where STOXX, Deutsche Börse Group or their licensors, research partners or data providers are aware that such loss or damage may occur. |
(i) | any Index gains during the Term subject to the applicable Precision Rate, Cap, and/or Participation Rate, |
(ii) | either any Index losses greater than the 10% or 20% Buffer, or Index losses down to the -10% Floor, and |
(iii) | the number of days until the Term End Date. |
(a) | change in Proxy Value = (current Proxy Value – beginning Proxy Value) |
(b) | proxy interest = beginning Proxy Value x (1 – time remaining during the Term) |
• The iShares ® MSCI Emerging Markets ETF first became available to newly issued Contracts on April 29, 2019, and became available to certain existing Contracts on the first Index Anniversary that occurred on or after August 20, 2019. |
• The Index Performance Strategy 3-year Term with 20% Buffer Index Options first became available to newly issued Contracts on May 1, 2020, and became available to certain existing Contracts on the first Index Anniversary that occurred on or after November 23, 2020. We stopped offering these Index Options to newly issued Contracts on April 30, 2021. |
• The Index Performance Strategy 3-year and 6-year Term Index Options with a Participation Rate first became available to newly issued Contracts on April 30, 2021. |
• For more information, please see Appendix |
Index Effective Dates: | 9/16/2013 - 1/6/2014 | 1/7/2014 - 1/5/2015 | 1/6/2015 - 1/4/2016 | 1/5/2016 - 1/2/2017 | 1/3/2017 - 1/2/2018 | 1/3/2018 - 1/1/2019 | ||||||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||||
Initial DPSCs | 4.00% | 4.50% | 3.75% | 4.00% | 3.50% | 3.75% | 3.00% | 3.50% | 3.00% | 4.75% | 3.75% | 5.40% | ||||||||||||
1st Anniversary Renewal DPSCs | 3.75% | 4.00% | 3.50% | 3.75% | 3.00% | 3.50% | 3.00% | 3.75% | 3.65% | 5.10% | 4.00% | 5.20% | ||||||||||||
2nd Anniversary Renewal DPSCs | 3.50% | 3.75% | 3.00% | 3.50% | 3.00% | 3.75% | 3.65% | 4.05% | 4.00% | 5.30% | 4.30% | 5.00% | ||||||||||||
3rd Anniversary Renewal DPSCs | 3.00% | 3.25% | 3.00% | 3.75% | 3.65% | 4.05% | 3.90% | 4.20% | 4.20% | 5.40% | 4.10% | 4.60% | ||||||||||||
4th Anniversary Renewal DPSCs | 3.75% | 3.75% | 3.65% | 4.05% | 3.90% | 4.20% | 4.00% | 4.40% | 4.00% | 5.10% | ||||||||||||||
5th Anniversary Renewal DPSCs | 3.90% | 4.00% | 3.90% | 4.20% | 4.00% | 4.40% | 3.90% | 4.10% | ||||||||||||||||
6th Anniversary Renewal DPSCs | 3.90% | 4.20% | 4.00% | 4.40% | 3.90% | 4.10% | ||||||||||||||||||
7th Anniversary Renewal DPSCs | 4.00% | 4.20% | 3.90% | 4.10% | ||||||||||||||||||||
8th Anniversary Renewal DPSCs | 3.90% | 3.90% |
Index Effective Dates: | 1/2/2019 - 1/6/2020 | 1/7/2020 - 1/4/2021 | 1/5/2021 - 1/3/2022 | |||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||
Initial DPSCs | 3.80% | 5.90% | 2.30% | 3.80% | 2.10% | 3.00% | ||||||
1st Anniversary Renewal DPSCs | 3.70% | 5.70% | 1.90% | 3.50% | ||||||||
2nd Anniversary Renewal DPSCs | 3.60% | 5.50% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
3rd Anniversary Renewal DPSCs | 3.65% | 4.05% | 4.00% | 4.00% | 4.00% | 4.10% | 5.10% | 5.20% | NA | NA | ||||||||||
4th Anniversary Renewal DPSCs | 3.90% | 4.20% | 4.00% | 4.20% | 3.80% | 4.10% | 5.10% | 5.30% | 4.10% | 4.50% | ||||||||||
5th Anniversary Renewal DPSCs | 4.00% | 4.40% | 4.20% | 4.40% | 4.20% | 4.50% | 4.40% | 4.60% | 4.40% | 4.50% | ||||||||||
6th Anniversary Renewal DPSCs | 3.90% | 4.10% | 4.30% | 4.30% | 4.10% | 4.20% | 4.30% | 4.50% | 4.00% | 4.10% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
2nd Anniversary Renewal DPSCs | 3.65% | 4.05% | 3.90% | 4.10% | 3.90% | 4.10% | 4.80% | 5.40% | NA | NA | ||||||||||
3rd Anniversary Renewal DPSCs 1 | 3.90% | 4.20% | 3.90% | 4.20% | 3.80% | 4.10% | 4.80% | 5.40% | 4.10% | 4.50% | ||||||||||
4th Anniversary Renewal DPSCs | 4.00% | 4.40% | 4.20% | 4.40% | 4.10% | 4.50% | 4.40% | 5.10% | 4.30% | 4.60% | ||||||||||
5th Anniversary Renewal DPSCs | 3.90% | 4.10% | 4.30% | 4.50% | 4.10% | 4.40% | 4.30% | 4.50% | 4.00% | 4.50% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
1st Anniversary Renewal DPSCs 1 | 3.65% | 5.10% | 4.10% | 5.20% | 4.10% | 5.20% | 5.20% | 6.40% | NA | NA | ||||||||||
2nd Anniversary Renewal DPSCs 2 | 4.00% | 5.30% | 3.90% | 5.40% | 3.90% | 5.30% | 4.80% | 6.50% | 4.30% | 5.60% | ||||||||||
3rd Anniversary Renewal DPSCs | 4.20% | 5.40% | 4.20% | 5.40% | 4.10% | 5.30% | 4.60% | 5.80% | 4.30% | 5.70% | ||||||||||
4th Anniversary Renewal DPSCs | 4.00% | 5.10% | 4.40% | 5.50% | 4.30% | 5.40% | 4.40% | 5.60% | 4.10% | 5.20% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial DPSCs 1 | 3.75% | 5.40% | 4.20% | 5.50% | 4.10% | 5.50% | 5.20% | 7.10% | NA | NA | ||||||||||
1st Anniversary Renewal DPSCs 2 | 4.00% | 5.20% | 4.00% | 5.30% | 4.10% | 5.30% | 4.90% | 6.90% | 4.40% | 5.60% | ||||||||||
2nd Anniversary Renewal DPSCs | 4.30% | 5.00% | 4.30% | 5.10% | 4.20% | 5.10% | 4.60% | 6.70% | 4.50% | 5.40% | ||||||||||
3rd Anniversary Renewal DPSCs | 4.10% | 4.60% | 4.40% | 5.10% | 4.40% | 4.90% | 4.60% | 5.60% | 4.20% | 4.80% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial DPSCs | 4.10% | 5.40% | 4.20% | 5.50% | 4.20% | 5.50% | 5.40% | 7.10% | NA | NA | ||||||||||
1st Anniversary Renewal DPSCs | 4.20% | 5.20% | 4.30% | 5.30% | 4.20% | 5.30% | 5.50% | 6.90% | 4.60% | 5.60% | ||||||||||
2nd Anniversary Renewal DPSCs | 4.30% | 5.00% | 4.40% | 5.10% | 4.30% | 5.10% | 4.70% | 6.70% | 4.60% | 5.40% | ||||||||||
3rd Anniversary Renewal DPSCs | 4.10% | 4.60% | 4.50% | 5.10% | 4.40% | 4.90% | 4.60% | 5.60% | 4.20% | 4.80% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial DPSCs 1 | 3.80% | 5.90% | 3.90% | 5.90% | 3.80% | 5.90% | 4.70% | 7.50% | 4.00% | 5.80% | ||||||||||
1st Anniversary Renewal DPSCs | 3.70% | 5.70% | 3.90% | 5.70% | 4.00% | 5.70% | 4.00% | 7.30% | 4.00% | 6.10% | ||||||||||
2nd Anniversary Renewal DPSCs | 3.60% | 5.50% | 3.90% | 5.50% | 3.80% | 5.50% | 4.00% | 6.40% | 3.70% | 5.90% |
1 | The initial DPSCs for the iShares® MSCI Emerging Markets ETF are for a partial period of April 29, 2019 through January 6, 2020. |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial DPSCs | 2.30% | 3.80% | 2.40% | 3.80% | 2.30% | 3.70% | 2.40% | 4.50% | 2.40% | 3.90% | ||||||||||
1st Anniversary Renewal DPSCs | 1.90% | 3.50% | 2.10% | 3.90% | 2.10% | 3.80% | 2.10% | 4.00% | 2.00% | 3.90% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial DPSCs | 2.10% | 3.00% | 2.20% | 3.30% | 2.20% | 3.20% | 2.30% | 3.40% | 2.20% | 3.30% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 4.50% | 6.00% | 4.75% | 6.25% | 4.50% | 6.00% | 7.00% | 10.75% | NA | NA | ||||||||||
1st Anniversary Renewal Caps | 4.75% | 5.75% | 4.75% | 5.75% | 4.50% | 5.50% | 7.75% | 10.25% | 4.50% | 5.75% | ||||||||||
2nd Anniversary Renewal Caps | 4.50% | 5.50% | 4.50% | 5.25% | 4.50% | 5.25% | 5.50% | 7.75% | 4.75% | 5.50% | ||||||||||
3rd Anniversary Renewal Caps | 4.75% | 5.00% | 4.75% | 5.50% | 4.75% | 5.25% | 5.50% | 6.25% | 5.00% | 5.25% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps 1 | 4.25% | 7.00% | 4.25% | 6.75% | 4.00% | 6.75% | 5.75% | 13.75% | 4.25% | 6.25% | ||||||||||
1st Anniversary Renewal Caps | 3.75% | 6.50% | 4.00% | 6.25% | 4.25% | 6.25% | 4.25% | 11.75% | 4.25% | 6.75% | ||||||||||
2nd Anniversary Renewal Caps | 3.75% | 6.00% | 4.25% | 5.75% | 4.00% | 5.75% | 4.50% | 8.75% | 4.00% | 6.25% |
1 | The initial Caps for the iShares® MSCI Emerging Markets ETF are for a partial period of April 29, 2019 through January 6, 2020. |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 2.50% | 4.00% | 2.50% | 4.00% | 2.50% | 4.00% | 2.50% | 5.50% | 2.50% | 4.25% | ||||||||||
1st Anniversary Renewal Caps | 2.50% | 3.75% | 2.50% | 4.25% | 2.50% | 4.00% | 2.50% | 4.50% | 2.50% | 4.00% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
DPSCs | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial DPSCs | 2.10% | 3.00% | 2.20% | 3.30% | 2.20% | 3.20% | 2.30% | 3.40% | 2.20% | 3.30% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 2.25% | 4.00% | 2.25% | 4.25% | 2.25% | 4.25% | 2.50% | 4.50% | 2.25% | 4.00% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Precision Rates | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
3rd Anniversary Renewal Precision Rates | 7.30% | 8.80% | 7.80% | 9.60% | 8.50% | 10.70% | 10.90% | 12.00% | NA | NA | ||||||||||
4th Anniversary Renewal Precision Rates | 7.40% | 9.30% | 8.60% | 10.40% | 8.50% | 10.40% | 10.70% | 11.70% | 10.00% | 11.10% | ||||||||||
5th Anniversary Renewal Precision Rates | 10.50% | 13.30% | 11.70% | 15.50% | 12.00% | 16.80% | 10.40% | 13.70% | 10.80% | 14.00% | ||||||||||
6th Anniversary Renewal Precision Rates | 8.80% | 10.30% | 10.70% | 12.40% | 10.50% | 11.70% | 9.40% | 10.80% | 9.50% | 11.50% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Precision Rates | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
2nd Anniversary Renewal Precision Rates | 6.55% | 9.45% | 7.80% | 9.95% | 7.80% | 10.95% | 10.25% | 12.00% | NA | NA | ||||||||||
3rd Anniversary Renewal Precision Rates 1 | 7.40% | 9.30% | 8.60% | 10.40% | 8.50% | 10.90% | 10.70% | 12.00% | 10.00% | 11.10% | ||||||||||
4th Anniversary Renewal Precision Rates | 8.00% | 13.30% | 8.80% | 15.50% | 8.90% | 16.80% | 10.20% | 13.70% | 9.50% | 14.00% | ||||||||||
5th Anniversary Renewal Precision Rates | 8.80% | 11.20% | 10.70% | 12.90% | 10.30% | 12.10% | 9.40% | 11.10% | 9.40% | 11.50% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Precision Rates | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Precision Rates 1 | 7.00% | 7.25% | 8.75% | 9.00% | 8.25% | 8.25% | 10.75% | 10.75% | NA | NA | ||||||||||
1st Anniversary Renewal Precision Rates | 6.55% | 9.95% | 8.20% | 10.45% | 7.80% | 11.50% | 10.25% | 12.70% | NA | NA | ||||||||||
2nd Anniversary Renewal Precision Rates 2 | 7.80% | 10.10% | 8.70% | 10.90% | 8.70% | 11.60% | 10.70% | 13.40% | 10.50% | 11.60% | ||||||||||
3rd Anniversary Renewal Precision Rates | 8.00% | 14.70% | 8.80% | 16.90% | 8.90% | 17.40% | 10.20% | 15.10% | 9.50% | 15.40% | ||||||||||
4th Anniversary Renewal Precision Rates | 9.40% | 11.20% | 11.30% | 13.00% | 10.90% | 12.30% | 10.00% | 11.40% | 10.00% | 12.10% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Precision Rates | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Precision Rates | 7.05% | 10.20% | 8.30% | 11.00% | 8.35% | 12.10% | 10.75% | 13.80% | NA | NA | ||||||||||
1st Anniversary Renewal Precision Rates 1 | 7.80% | 10.40% | 9.10% | 11.50% | 8.90% | 11.30% | 11.30% | 13.10% | 10.40% | 12.30% | ||||||||||
2nd Anniversary Renewal Precision Rates | 8.40% | 13.70% | 9.20% | 15.90% | 9.30% | 15.40% | 10.70% | 14.10% | 10.00% | 14.40% | ||||||||||
3rd Anniversary Renewal Precision Rates | 8.80% | 11.80% | 10.80% | 13.70% | 10.00% | 13.20% | 9.10% | 11.70% | 9.60% | 12.50% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Precision Rates | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Precision Rates | 8.00% | 10.20% | 8.60% | 11.00% | 9.50% | 12.10% | 11.70% | 13.80% | NA | NA | ||||||||||
1st Anniversary Renewal Precision Rates | 7.80% | 10.40% | 9.10% | 11.50% | 8.90% | 11.30% | 11.40% | 13.10% | 10.40% | 12.30% | ||||||||||
2nd Anniversary Renewal Precision Rates | 11.10% | 13.70% | 12.30% | 15.90% | 12.70% | 15.40% | 11.10% | 14.10% | 11.40% | 14.40% | ||||||||||
3rd Anniversary Renewal Precision Rates | 8.80% | 9.40% | 10.80% | 11.50% | 10.00% | 11.10% | 9.10% | 10.40% | 9.60% | 10.60% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Precision Rates | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Precision Rates 1 | 8.70% | 11.30% | 9.90% | 11.60% | 9.70% | 13.40% | 11.70% | 14.20% | 10.90% | 12.30% | ||||||||||
1st Anniversary Renewal Precision Rates | 8.60% | 13.80% | 9.30% | 16.00% | 9.50% | 15.40% | 10.80% | 14.20% | 10.20% | 14.50% | ||||||||||
2nd Anniversary Renewal Precision Rates | 8.70% | 10.80% | 10.50% | 13.20% | 9.70% | 12.40% | 8.70% | 10.80% | 9.40% | 11.90% |
1 | The initial Precision Rates for the iShares® MSCI Emerging Markets ETF are for a partial period of April 29, 2019 through January 6, 2020. |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Precision Rates | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Precision Rates | 8.60% | 13.80% | 9.30% | 16.00% | 9.50% | 15.40% | 10.80% | 14.20% | 10.20% | 14.50% | ||||||||||
1st Anniversary Renewal Precision Rates | 8.70% | 10.80% | 10.50% | 13.20% | 9.70% | 12.40% | 8.70% | 10.80% | 9.40% | 11.90% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Precision Rates | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Precision Rates | 8.70% | 10.80% | 10.50% | 13.20% | 9.70% | 12.40% | 8.70% | 10.80% | 9.40% | 11.90% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 10.25% | 12.50% | 10.50% | 12.75% | 10.25% | 12.50% | 22.00% | 25.50% | NA | NA | ||||||||||
1st Anniversary Renewal Caps | 11.25% | 13.75% | 12.00% | 14.00% | 10.75% | 12.75% | 24.50% | 26.00% | 13.75% | 16.00% | ||||||||||
2nd Anniversary Renewal Caps | 9.25% | 11.00% | 11.00% | 11.25% | 10.50% | 12.00% | 18.00% | 20.00% | 11.00% | 12.25% | ||||||||||
3rd Anniversary Renewal Caps | 8.25% | 10.00% | 11.25% | 13.00% | 10.00% | 12.00% | 14.50% | 22.00% | 11.50% | 14.75% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 9.50% | 10.25% | 9.75% | 10.00% | 9.00% | 9.50% | 9.75% | 10.25% | NA | NA | ||||||||||
1st Anniversary Renewal Caps | 9.00% | 9.25% | 9.75% | 10.00% | 8.25% | 9.00% | 9.75% | 10.00% | NA | NA | ||||||||||
2nd Anniversary Renewal Caps | 9.75% | 10.75% | 11.00% | 11.75% | 9.50% | 10.00% | 19.25% | 25.00% | NA | NA | ||||||||||
3rd Anniversary Renewal Caps | 9.25% | 10.25% | 10.00% | 10.50% | 9.75% | 10.50% | 22.00% | 23.50% | NA | NA | ||||||||||
4th Anniversary Renewal Caps | 10.50% | 11.50% | 11.25% | 12.00% | 10.25% | 10.75% | 23.00% | 25.50% | 12.50% | 13.25% | ||||||||||
5th Anniversary Renewal Caps | 9.50% | 10.50% | 10.50% | 11.75% | 10.25% | 12.25% | 17.00% | 19.50% | 11.50% | 12.00% | ||||||||||
6th Anniversary Renewal Caps | 8.75% | 9.50% | 12.00% | 12.50% | 10.75% | 11.50% | 15.75% | 25.00% | 12.50% | 14.00% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 9.00% | 10.75% | 9.75% | 11.00% | 8.25% | 9.75% | 9.75% | 11.00% | NA | NA | ||||||||||
1st Anniversary Renewal Caps | 9.00% | 10.75% | 9.75% | 12.00% | 8.50% | 10.00% | 9.75% | 25.00% | NA | NA | ||||||||||
2nd Anniversary Renewal Caps | 9.25% | 10.25% | 10.00% | 11.25% | 9.50% | 10.50% | 22.00% | 26.00% | NA | NA | ||||||||||
3rd Anniversary Renewal Caps 1 | 10.00% | 11.50% | 10.75% | 12.00% | 10.25% | 11.25% | 23.00% | 26.00% | 12.00% | 13.25% | ||||||||||
4th Anniversary Renewal Caps | 9.50% | 12.00% | 10.50% | 11.75% | 10.00% | 12.25% | 17.00% | 24.50% | 11.50% | 13.00% | ||||||||||
5th Anniversary Renewal Caps | 8.75% | 10.25% | 11.75% | 12.75% | 10.75% | 12.00% | 15.75% | 25.00% | 11.25% | 14.00% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 9.00% | 15.00% | 9.75% | 16.00% | 8.50% | 13.50% | 9.75% | 25.00% | NA | NA | ||||||||||
1st Anniversary Renewal Caps | 9.25% | 13.50% | 10.50% | 14.00% | 9.50% | 13.25% | 23.00% | 29.00% | NA | NA | ||||||||||
2nd Anniversary Renewal Caps 1 | 10.25% | 15.00% | 10.75% | 15.50% | 10.25% | 14.50% | 23.50% | 29.00% | 12.75% | 16.75% | ||||||||||
3rd Anniversary Renewal Caps | 10.00% | 14.00% | 10.75% | 14.00% | 10.00% | 13.75% | 17.25% | 24.50% | 12.00% | 16.50% | ||||||||||
4th Anniversary Renewal Caps | 9.25% | 13.00% | 11.75% | 16.00% | 11.00% | 15.00% | 17.00% | 25.00% | 11.25% | 17.75% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 9.75% | 12.50% | 10.50% | 12.75% | 10.00% | 12.50% | 22.00% | 26.00% | NA | NA | ||||||||||
1st Anniversary Renewal Caps 1 | 10.50% | 13.75% | 11.25% | 14.00% | 10.75% | 12.75% | 24.50% | 26.50% | 12.75% | 16.00% | ||||||||||
2nd Anniversary Renewal Caps | 9.25% | 12.50% | 10.75% | 12.00% | 10.50% | 12.00% | 18.00% | 25.00% | 11.00% | 13.50% | ||||||||||
3rd Anniversary Renewal Caps | 8.25% | 10.75% | 11.25% | 13.25% | 10.00% | 12.50% | 14.50% | 22.00% | 11.50% | 14.75% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps 1 | 12.75% | 15.25% | 12.75% | 14.50% | 11.25% | 13.50% | 24.50% | 28.00% | 14.50% | 16.75% | ||||||||||
1st Anniversary Renewal Caps | 9.25% | 13.00% | 10.50% | 12.50% | 10.25% | 12.00% | 18.00% | 26.00% | 11.00% | 14.50% | ||||||||||
2nd Anniversary Renewal Caps | 8.25% | 9.75% | 11.00% | 12.00% | 10.00% | 11.25% | 14.50% | 20.00% | 10.50% | 12.75% |
1 | The initial Caps for the iShares® MSCI Emerging Markets ETF are for a partial period of April 29, 2019 through January 6, 2020. |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 9.25% | 13.00% | 10.50% | 12.50% | 10.25% | 12.00% | 12.50% | 26.00% | 11.00% | 14.50% | ||||||||||
1st Anniversary Renewal Caps | 8.25% | 9.75% | 11.00% | 12.00% | 10.00% | 11.25% | 14.50% | 20.00% | 10.50% | 12.75% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 8.25% | 9.75% | 11.00% | 12.00% | 10.00% | 11.25% | 12.50% | 16.50% | 10.50% | 12.75% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | |||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||
Initial Caps | 13.00% | 14.00% | 14.00% | 16.00% | 11.00% | 13.00% | ||||||
1st Anniversary Renewal Caps | 12.50% | 13.50% | 14.75% | 15.75% | 12.00% | 13.00% | ||||||
2nd Anniversary Renewal Caps | 10.50% | 15.50% | 13.75% | 17.50% | 9.75% | 15.25% | ||||||
3rd Anniversary Renewal Caps | 10.75% | 11.25% | 13.75% | 14.50% | 10.75% | 11.25% | ||||||
4th Anniversary Renewal Caps | 9.25% | 9.75% | 12.00% | 12.50% | 10.00% | 10.25% | ||||||
5th Anniversary Renewal Caps | 10.50% | 12.00% | 11.00% | 13.00% | 11.75% | 14.25% | ||||||
6th Anniversary Renewal Caps | 12.00% | 13.25% | 14.25% | 14.75% | 13.75% | 14.25% | ||||||
7th Anniversary Renewal Caps | 17.50% | 19.25% | 19.00% | 23.50% | 19.00% | 23.75% | ||||||
8th Anniversary Renewal Caps | 15.00% | 15.75% | 18.25% | 20.50% | 16.25% | 17.75% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | |||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||
Initial Caps | 12.50% | 13.50% | 13.50% | 15.75% | 11.75% | 13.00% | ||||||
1st Anniversary Renewal Caps | 10.50% | 15.50% | 13.25% | 17.50% | 9.75% | 15.25% | ||||||
2nd Anniversary Renewal Caps | 10.75% | 15.50% | 13.75% | 18.50% | 10.75% | 15.00% | ||||||
3rd Anniversary Renewal Caps | 9.25% | 12.00% | 12.00% | 16.50% | 9.50% | 12.00% | ||||||
4th Anniversary Renewal Caps | 9.25% | 13.75% | 11.00% | 14.50% | 10.75% | 15.50% | ||||||
5th Anniversary Renewal Caps | 10.50% | 13.25% | 12.00% | 14.75% | 11.50% | 15.00% | ||||||
6th Anniversary Renewal Caps | 11.75% | 20.25% | 12.25% | 24.00% | 11.75% | 23.75% | ||||||
7th Anniversary Renewal Caps | 15.00% | 18.00% | 17.50% | 20.50% | 15.50% | 19.75% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps 1 | 10.50% | 15.50% | 13.25% | 17.50% | 9.75% | 15.25% | 13.50% | 17.50% | NA | NA | ||||||||||
1st Anniversary Renewal Caps 2 | 10.75% | 15.50% | 13.75% | 18.50% | 10.75% | 15.00% | 13.75% | 16.50% | NA | NA | ||||||||||
2nd Anniversary Renewal Caps 3 | 9.25% | 12.00% | 12.00% | 16.50% | 9.50% | 12.00% | 22.00% | 25.00% | NA | NA | ||||||||||
3rd Anniversary Renewal Caps 4 | 9.25% | 13.75% | 11.00% | 14.50% | 10.75% | 15.50% | 24.00% | 25.00% | NA | NA | ||||||||||
4th Anniversary Renewal Caps 5 | 10.50% | 13.25% | 12.00% | 14.75% | 11.50% | 15.00% | 25.00% | 26.50% | 15.50% | 18.00% | ||||||||||
5th Anniversary Renewal Caps 6 | 11.75% | 20.25% | 12.25% | 24.00% | 11.75% | 23.75% | 25.50% | 29.25% | 17.50% | 26.00% | ||||||||||
6th Anniversary Renewal Caps 7 | 15.00% | 18.00% | 17.50% | 20.50% | 15.50% | 19.75% | 24.00% | 29.25% | 16.25% | 22.00% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 10.75% | 15.50% | 13.75% | 18.50% | 10.75% | 15.00% | 13.75% | 18.50% | NA | NA | ||||||||||
1st Anniversary Renewal Caps | 9.25% | 12.00% | 12.00% | 16.50% | 9.50% | 12.00% | 13.50% | 25.00% | NA | NA | ||||||||||
2nd Anniversary Renewal Caps | 9.25% | 13.75% | 11.00% | 14.50% | 10.75% | 15.50% | 24.00% | 28.00% | NA | NA | ||||||||||
3rd Anniversary Renewal Caps 1 | 10.50% | 13.25% | 12.00% | 14.75% | 11.50% | 15.00% | 25.00% | 28.00% | 14.25% | 18.00% | ||||||||||
4th Anniversary Renewal Caps | 11.75% | 20.25% | 12.25% | 24.00% | 11.75% | 23.75% | 23.50% | 29.25% | 15.00% | 26.00% | ||||||||||
5th Anniversary Renewal Caps | 15.00% | 18.00% | 17.50% | 20.50% | 15.50% | 19.75% | 22.25% | 29.25% | 16.25% | 24.00% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 9.75% | 14.50% | 13.50% | 18.50% | 10.00% | 14.00% | 13.50% | 25.50% | NA | NA | ||||||||||
1st Anniversary Renewal Caps | 9.25% | 17.00% | 12.00% | 17.25% | 10.75% | 17.75% | 24.00% | 31.00% | NA | NA | ||||||||||
2nd Anniversary Renewal Caps 1 | 10.75% | 17.75% | 12.00% | 18.00% | 11.50% | 17.75% | 25.50% | 31.00% | 15.50% | 20.00% | ||||||||||
3rd Anniversary Renewal Caps | 11.75% | 25.50% | 12.25% | 27.50% | 11.75% | 26.50% | 23.50% | 31.50% | 15.00% | 29.00% | ||||||||||
4th Anniversary Renewal Caps | 16.50% | 20.75% | 18.25% | 22.75% | 16.50% | 20.75% | 25.50% | 29.50% | 17.50% | 27.50% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 11.50% | 16.25% | 14.25% | 16.75% | 12.00% | 17.00% | 24.00% | 28.00% | NA | NA | ||||||||||
1st Anniversary Renewal Caps 1 | 12.50% | 16.00% | 13.50% | 17.75% | 12.25% | 16.50% | 26.25% | 28.00% | 15.50% | 23.00% | ||||||||||
2nd Anniversary Renewal Caps | 12.75% | 22.50% | 13.25% | 25.75% | 12.50% | 26.25% | 24.00% | 29.50% | 16.50% | 26.00% | ||||||||||
3rd Anniversary Renewal Caps | 16.50% | 21.50% | 17.75% | 23.75% | 15.50% | 22.25% | 25.00% | 29.00% | 18.50% | 27.50% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 14.00% | 16.25% | 14.25% | 16.00% | 14.75% | 17.00% | 24.00% | 27.50% | NA | NA | ||||||||||
1st Anniversary Renewal Caps | 13.25% | 16.00% | 14.00% | 17.75% | 13.25% | 16.50% | 26.50% | 28.00% | 16.75% | 23.00% | ||||||||||
2nd Anniversary Renewal Caps | 20.00% | 22.50% | 21.50% | 25.75% | 21.75% | 26.25% | 27.50% | 29.50% | 20.25% | 26.00% | ||||||||||
3rd Anniversary Renewal Caps | 16.50% | 18.25% | 17.75% | 19.75% | 15.50% | 17.75% | 25.00% | 28.00% | 18.50% | 24.50% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps 1 | 14.25% | 17.25% | 15.00% | 17.75% | 14.25% | 18.50% | 26.50% | 29.00% | 19.00% | 23.00% | ||||||||||
1st Anniversary Renewal Caps | 13.75% | 22.25% | 14.00% | 25.75% | 13.50% | 26.25% | 25.00% | 29.50% | 17.50% | 26.00% | ||||||||||
2nd Anniversary Renewal Caps | 16.25% | 20.75% | 17.25% | 23.50% | 15.25% | 21.50% | 25.50% | 28.50% | 18.25% | 22.50% |
1 | The initial Caps for the iShares® MSCI Emerging Markets ETF are for a partial period of April 29, 2019 through January 6, 2020. |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 13.75% | 22.25% | 14.00% | 25.75% | 13.50% | 26.25% | 25.00% | 29.50% | 17.50% | 26.00% | ||||||||||
1st Anniversary Renewal Caps | 16.25% | 20.75% | 17.25% | 23.50% | 15.25% | 21.50% | 25.50% | 28.50% | 18.25% | 22.50% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | Nasdaq-100 ® Index | EURO STOXX 50 ® | iShares ® MSCI Emerging Markets ETF | |||||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||||
Initial Caps | 16.25% | 20.75% | 17.25% | 23.50% | 15.25% | 21.50% | 25.50% | 28.50% | 18.25% | 22.50% |
The Index Performance Strategy 3-year Term with 20% Buffer Index Options first became available to newly issued Contracts on May 1, 2020, and became available to certain existing Contracts on the first Index Anniversary that occurred on or after November 23, 2020. We stopped offering these Index Options to newly issued Contracts on April 30, 2021. For more information, please see Appendix |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | ||||||
Caps | Lowest | Highest | Lowest | Highest | ||||
5th Anniversary Renewal Caps 1 | 80.00% | 80.00% | 45.00% | 45.00% | ||||
6th Anniversary Renewal Caps 2 | 35.00% | 40.00% | 30.00% | 45.00% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | ||||||
Caps | Lowest | Highest | Lowest | Highest | ||||
4th Anniversary Renewal Caps 1 | 80.00% | 80.00% | 45.00% | 45.00% | ||||
5th Anniversary Renewal Caps | 35.00% | 75.00% | 30.00% | 45.00% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | ||||||
Caps | Lowest | Highest | Lowest | Highest | ||||
3rd Anniversary Renewal Caps 1 | 100.00% | 100.00% | 55.00% | 55.00% | ||||
4th Anniversary Renewal Caps | 45.00% | 85.00% | 40.00% | 60.00% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | S&P 500 ® Index | Russell 2000 ® Index | ||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||
2nd Anniversary Renewal Caps 1 | 100.00% | 100.00% | 50.00% | 55.00% | 100.00% | 100.00% | 50.00% | 55.00% | ||||||||
3rd Anniversary Renewal Caps | 45.00% | 100.00% | 40.00% | 50.00% | 45.00% | 55.00% | 40.00% | 45.00% |
1 | The 2nd Anniversary Renewal Caps are for a partial period of November 23, 2020 through January 1, 2021. |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | ||||||
Caps | Lowest | Highest | Lowest | Highest | ||||
1st Anniversary Renewal Caps 1 | 100.00% | 100.00% | 50.00% | 55.00% | ||||
2nd Anniversary Renewal Caps | 45.00% | 90.00% | 40.00% | 50.00% |
1 | The 1st Anniversary Renewal Caps are for a partial period of November 23, 2020 through January 6, 2021. |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | S&P 500 ® Index | Russell 2000 ® Index | ||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||
Initial Caps 1 | 75.00% | 85.00% | 50.00% | 80.00% | 75.00% | 100.00% | 50.00% | 80.00% | ||||||||
1st Anniversary Renewal Caps | 45.00% | 90.00% | 40.00% | 50.00% | 45.00% | 90.00% | 40.00% | 50.00% |
1 | The initial Caps are for a partial period of May 1, 2020 through January 6, 2021. |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | ||||||
Cap | Lowest | Highest | Lowest | Highest | ||||
Initial Cap | 90.00% | 90.00% | 45.00% | 50.00% |
Indexes: | S&P 500 ® Index | Russell 2000 ® Index | ||||||
Caps | Lowest | Highest | Lowest | Highest | ||||
Initial Caps | 90.00% | 90.00% | 45.00% | 50.00% |
The Index Performance Strategy 3-year Term with 20% Buffer and Participation Rate Index Options first became available to newly issued Contracts on April 30, 2021. For more information, please see Appendix |
S&P 500 ® Index | Russell 2000 ® Index | ||||||||||
Caps | Participation Rates | Caps | Participation Rates | ||||||||
Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||
Initial | 45.00% | 90.00% | 100.00% | 100.00% | 40.00% | 50.00% | 100.00% | 100.00% |
The Index Performance Strategy 3-year Term with 10% Buffer and Participation Rate Index Options first became available to newly issued Contracts on April 30, 2021. For more information, please see Appendix |
S&P 500 ® Index | Russell 2000 ® Index | ||||||||||
Caps | Participation Rates | Caps | Participation Rates | ||||||||
Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||
Initial | 100.00% | 100.00% | 110.00% | 110.00% | 100.00% | 100.00% | 100.00% | 100.00% |
The Index Performance Strategy 6-year Term with 10% Buffer and Participation Rate Index Options first became available to newly issued Contracts on April 30, 2021. For more information, please see Appendix |
S&P 500 ® Index | Russell 2000 ® Index | ||||||||||
Caps | Participation Rates | Caps | Participation Rates | ||||||||
Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||
Initial | 100.00% | 100.00% | 110.00% | 110.00% | 100.00% | 100.00% | 100.00% | 100.00% |
• The Index Performance Strategy 3-year Term with 20% Buffer using the S&P 500® Index was not available before May 1, 2020. Therefore, no performance for this Index Option will be included here until after May 1, 2023. |
• The Index Performance Strategy 3-year and 6-year Term Index Options with a Participation Rate using the S&P 500® Index were not available before April 30, 2021. Therefore, no performance for these 3-year Term Index Options will be included here until after May 1, 2024, and no performance for these 6-year Term Index Options will be included here until after May 1, 2027. For more information, please see Appendix |
Index Effective Date | 9/16/2013- 9/30/2013 | 10/1/2013- 11/4/2013 | 11/5/2013- 12/2/2013 | 12/3/2013- 1/6/2014 | 1/7/2014- 2/3/2014 | 2/4/2014- 3/3/2014 | 3/4/2014- 3/31/2014 | |||||||
Initial DPSC | 4.00% | 4.50% | 4.50% | 4.00% | 4.00% | 4.00% | 4.00% | |||||||
1st Index Year Index Return | 16.14% to 17.75% | 8.20% to 18.93% | 13.52% to 16.30% | 9.63% to 16.27% | 7.81% to 17.69% | 13.49% to 17.75% | 8.90% to 13.04% | |||||||
1st Index Anniversary Credit | 4.00% | 4.50% | 4.50% | 4.00% | 4.00% | 4.00% | 4.00% | |||||||
1st Anniversary Renewal DPSC | 4.00% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.50% | |||||||
2nd Index Year Index Return | -5.10% to -0.18% | -1.15% to 9.15% | -0.80% to 3.77% | -2.76% to 5.09% | -8.75% to -4.09% | -11.58% to -5.43% | -4.73% to -0.88% | |||||||
2nd Index Anniversary Credit | 0% | 0% or 3.75% | 0% or 3.75% | 0% or 3.75% | 0% | 0% | 0% | |||||||
2nd Anniversary Renewal DPSC | 3.75% | 3.75% | 3.75% | 3.50% | 3.50% | 3.50% | 3.50% | |||||||
3rd Index Year Index Return | 7.21% to 14.78% | -0.81% to 12.34% | 1.50% to 6.98% | 5.40% to 14.41% | 16.77% to 22.16% | 19.55% to 27.29% | 14.25% to 19.25% | |||||||
3rd Index Anniversary Credit | 3.75% | 0% or 3.75% | 3.75% | 3.50% | 3.50% | 3.50% | 3.50% | |||||||
3rd Anniversary Renewal DPSC | 3.25% | 3.00% | 3.00% | 3.00% | 3.00% | 3.25% | 3.25% | |||||||
4th Index Year Index Return | 15.34% to 17.22% | 17.02% to 24.26% | 17.47% to 21.56% | 17.22% to 20.67% | 15.30% to 25.34% | 14.08% to 17.56% | 10.45% to 17.30% | |||||||
4th Index Anniversary Credit | 3.25% | 3.00% | 3.00% | 3.00% | 3.00% | 3.25% | 3.25% | |||||||
4th Anniversary Renewal DPSC | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.65% | 3.85% | |||||||
5th Index Year Index Return | 15.37% to 16.93% | 2.66% to 15.64% | 1.96% to 8.62% | -12.38% to 5.72% | -7.35% to 2.87% | 0.51% to 3.38% | 0.01% to 8.08% | |||||||
5th Index Anniversary Credit | 3.75% | 3.75% | 3.75% | 0% or 3.75% | 0% or 3.75% | 3.65% | 3.85% | |||||||
5th Anniversary Renewal DPSC | 4.00% | 3.90% | 3.90% | 4.00% | 4.00% | 4.00% | 4.10% | |||||||
6th Index Year Index Return | 1.62% to 4.05% | -1.23% to 15.08% | 9.64% to 17.66% | 10.85% to 37.13% | 19.23% to 27.32% | 6.10% to 23.91% | -21.63% to 12.08% | |||||||
6th Index Anniversary Credit | 4.00% | 0% or 3.90% | 3.90% | 4.00% | 4.00% | 4.00% | 0% or 4.10% | |||||||
6th Anniversary Renewal DPSC | 4.20% | 3.90% | 4.20% | 4.20% | 4.20% | 4.20% | 4.20% | |||||||
7th Index Year Index Return | 8.19% to 13.16% | 7.62% to 20.29% | 14.06% to 17.83% | 13.59% to 18.84% | 13.17% to 17.89% | 14.92% to 32.08% | 20.39% to 76.12% | |||||||
7th Index Anniversary Credit | 4.20% | 3.90% | 4.20% | 4.20% | 4.20% | 4.20% | 4.20% | |||||||
7th Anniversary Renewal DPSC Rate | 4.00% | 4.10% | 4.20% | 4.10% | ||||||||||
8th Index Year Index Return | 31.28% to 37.44% | 23.40% to 40.52% | 24.75% to 33.97% | 23.15% to 29.61% | ||||||||||
8th Index Anniversary Credit | 4.00% | 4.10% | 4.20% | 4.10% |
Index Effective Date | 8/20/2018- 9/4/2018 | 9/5/2018- 10/1/2018 | 10/2/2018- 11/5/2018 | 11/6/2018- 12/3/2018 | 12/4/2018- 1/1/2019 | 1/2/2019- 2/4/2019 | 2/5/2019- 3/4/2019 | |||||||
Initial DPSC | 4.10% | 5.00% | 5.00% | 5.10% | 5.40% | 5.60% | 5.90% | |||||||
1st Index Year Index Return | -0.95% to 3.70% | 0.54% to 4.18% | -1.23% to 14.32% | 9.64% to 19.03% | 15.28% to 37.10% | 20.04% to 32.15% | 6.10% to 23.91% | |||||||
1st Index Anniversary Credit | 0% or 4.10% | 5.00% | 0% or 5.00% | 5.10% | 5.40% | 5.60% | 5.90% | |||||||
1st Anniversary Renewal DPSC | 4.20% | 4.50% | 4.80% | 5.00% | 5.20% | 5.40% | 5.70% | |||||||
2nd Index Year Index Return | 14.38% to 21.47% | 9.12% to 15.15% | 7.54% to 20.29% | 14.06% to 18.54% | 14.29% to 18.84% | 13.17% to 18.86% | 14.92% to 32.08% | |||||||
2nd Index Anniversary Credit | 4.20% | 4.50% | 4.80% | 5.00% | 5.20% | 5.40% | 5.70% | |||||||
2nd Anniversary Renewal DPSC | 4.40% | 4.30% | 4.60% | 4.80% | 5.00% | |||||||||
3rd Index Year Index Return | 29.10% to 32.82% | 28.88% to 37.24% | 23.10% to 39.89% | 23.77% to 33.97% | 23.15% to 28.46% | |||||||||
3rd Index Anniversary Credit | 4.40% | 4.30% | 4.60% | 4.80% | 5.00% |
Index Effective Date | 3/5/2019- 4/1/2019 | 4/2/2019- 5/6/2019 | 5/7/2019- 6/3/2019 | 6/4/2019- 7/1/2019 | 7/2/2019- 8/5/2019 | 8/6/2019- 9/3/2019 | ||||||
Initial DPSC | 5.60% | 5.50% | 5.40% | 5.20% | 4.90% | 4.70% | ||||||
1st Index Year Index Return | -21.63% to 8.40% | -13.39% to -0.89% | -0.10% to 13.79% | 3.27% to 13.68% | 4.48% to 16.98% | 14.38% to 22.36% | ||||||
1st Index Anniversary Credit | 0% or 5.60% | 0% | 0% or 5.40% | 5.20% | 4.90% | 4.70% | ||||||
1st Anniversary Renewal DPSC | 5.40% | 5.30% | 5.20% | 5.00% | 4.70% | 4.50% | ||||||
2nd Index Year Index Return | 27.05% to 76.12% | 44.83% to 63.86% | 34.26% to 46.90% | 30.76% to 42.59% | 30.96% to 39.05% | 26.70% to 32.82% | ||||||
2nd Index Anniversary Credit | 5.40% | 5.30% | 5.20% | 5.00% | 4.70% | 4.50% |
Index Effective Date | 4/1/2014- 5/5/2014 | 5/6/2014- 6/2/2014 | 6/3/2014- 6/30/2014 | 7/1/2014- 8/4/2014 | 8/5/2014- 9/1/2014 | 9/2/2014- 10/6/2014 | ||||||
Initial DPSC | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | ||||||
1st Index Year Index Return | 9.24% to 15.24% | 9.59% to 13.51% | 4.93% to 9.87% | 3.98% to 8.98% | -6.52% to 9.35% | -5.10% to 0.97% | ||||||
1st Index Anniversary Credit | 4.00% | 4.00% | 4.00% | 4.00% | 0% or 4.00% | 0% or 4.00% | ||||||
1st Anniversary Renewal DPSC | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | 3.75% | ||||||
2nd Index Year Index Return | -2.86% to 0.64% | -4.13% to -0.21% | -4.84% to 1.70% | 0.80% to 4.88% | 3.65% to 16.32% | 7.21% to 14.05% | ||||||
2nd Index Anniversary Credit | 0% or 3.50% | 0% | 0% or 3.50% | 3.50% | 3.50% | 3.75% | ||||||
2nd Anniversary Renewal DPSC | 3.50% | 3.50% | 3.25% | 3.25% | 3.25% | 3.25% | ||||||
3rd Index Year Index Return | 11.82% to 17.00% | 15.09% to 17.38% | 14.95% to 21.92% | 13.49% to 15.60% | 10.91% to 14.08% | 12.75% to 17.98% | ||||||
3rd Index Anniversary Credit | 3.50% | 3.50% | 3.25% | 3.25% | 3.25% | 3.25% | ||||||
3rd Anniversary Renewal DPSC | 3.25% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | ||||||
4th Index Year Index Return | 9.46% to 15.21% | 11.36% to 14.75% | 11.40% to 14.71% | 11.70% to 15.09% | 14.35% to 18.57% | 13.14% to 17.53% | ||||||
4th Index Anniversary Credit | 3.25% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | ||||||
4th Anniversary Renewal DPSC | 3.80% | 4.05% | 4.00% | 4.00% | 4.00% | 4.00% | ||||||
5th Index Year Index Return | 7.17% to 11.14% | -0.09% to 9.72% | -0.09% to 8.40% | -0.20% to 10.42% | -0.95% to 3.70% | -1.23% to 4.18% | ||||||
5th Index Anniversary Credit | 3.80% | 0% or 4.05% | 0% or 4.00% | 0% or 4.00% | 0% or 4.00% | 0% or 4.00% | ||||||
5th Anniversary Renewal DPSC | 4.00% | 4.00% | 4.00% | 4.20% | 4.00% | 4.20% | ||||||
6th Index Year Index Return | -13.84% to -0.89% | -2.87% to 12.26% | 3.27% to 13.79% | 4.48% to 16.23% | 14.38% to 21.47% | 8.19% to 22.36% | ||||||
6th Index Anniversary Credit | 0% | 0% or 4.00% | 4.00% | 4.20% | 4.00% | 4.20% | ||||||
6th Anniversary Renewal DPSC | 4.40% | 4.40% | 4.30% | 4.20% | 4.20% | 4.00% | ||||||
7th Index Year Index Return | 44.83% to 63.86% | 36.59% to 47.51% | 30.76% to 42.59% | 30.96% to 39.05% | 28.28% to 33.42% | 26.16% to 37.44% | ||||||
7th Index Anniversary Credit | 4.40% | 4.40% | 4.30% | 4.20% | 4.20% | 4.00% |
Index Effective Date | 8/20/2018- 9/4/2018 | 9/5/2018- 10/1/2018 | 10/2/2018- 11/5/2018 | 11/6/2018- 12/3/2018 | 12/4/2018- 1/1/2019 | 1/2/2019- 2/4/2019 | 2/5/2019- 3/4/2019 | |||||||
Initial Cap | 4.50% | 5.75% | 5.75% | 5.75% | 6.00% | 6.50% | 7.00% | |||||||
1st Index Year Index Return | -0.95% to 3.70% | 0.54% to 4.18% | -1.23% to 14.32% | 9.64% to 19.03% | 15.28% to 37.10% | 20.04% to 32.15% | 6.10% to 23.91% | |||||||
1st Index Anniversary Credit | 0% or 3.70% | 0.54% to 4.18% | 0% or 5.75% | 5.75% | 6.00% | 6.50% | 6.10% to 7.00% | |||||||
1st Anniversary Renewal Cap | 4.75% | 5.00% | 5.50% | 5.75% | 5.50% | 6.00% | 6.50% | |||||||
2nd Index Year Index Return | 14.38% to 21.47% | 9.12% to 15.15% | 7.54% to 20.29% | 14.06% to 18.54% | 14.29% to 18.84% | 13.17% to 18.86% | 14.92% to 32.08% | |||||||
2nd Index Anniversary Credit | 4.75% | 5.00% | 5.50% | 5.75% | 5.50% | 6.00% | 6.50% | |||||||
2nd Anniversary Renewal Cap | 4.50% | 4.50% | 5.00% | 5.50% | 5.25% | |||||||||
3rd Index Year Index Return | 29.10% to 32.82% | 28.88% to 37.24% | 23.10% to 39.89% | 23.77% to 33.97% | 23.15% to 28.46% | |||||||||
3rd Index Anniversary Credit | 4.50% | 4.50% | 5.00% | 5.50% | 5.25% |
Index Effective Date | 3/5/2019- 4/1/2019 | 4/2/2019- 5/6/2019 | 5/7/2019- 6/3/2019 | 6/4/2019- 7/1/2019 | 7/2/2019- 8/5/2019 | 8/6/2019- 9/3/2019 | ||||||
Initial Cap | 6.50% | 6.50% | 6.25% | 6.00% | 5.75% | 5.50% | ||||||
1st Index Year Index Return | -21.63% to 8.40% | -13.39% to -0.89% | -0.10% to 13.79% | 3.27% to 13.68% | 4.48% to 16.98% | 14.38% to 22.36% | ||||||
1st Index Anniversary Credit | 0% or 6.50% | 0% | 0% or 6.25% | 3.27% to 6.00% | 4.48% to 5.75% | 5.50% | ||||||
1st Anniversary Renewal Cap | 6.00% | 6.00% | 5.75% | 5.50% | 5.25% | 5.00% | ||||||
2nd Index Year Index Return | 27.05% to 76.12% | 44.83% to 63.86% | 34.26% to 46.90% | 30.76% to 42.59% | 30.96% to 39.05% | 26.70% to 32.82% | ||||||
2nd Index Anniversary Credit | 6.00% | 6.00% | 5.75% | 5.50% | 5.25% | 5.00% |
Index Effective Date | 11/14/2017- 12/4/2017 | 12/5/2017- 1/2/2018 | 1/3/2018- 2/5/2018 | 2/6/2018- 3/5/2018 | 3/6/2018- 4/2/2018 | 4/3/2018- 4/30/2018 | 5/1/2018- 6/4/2018 | 8/20/2018- 9/4/2018 | 9/5/2018- 10/1/2018 | 10/2/2018- 11/5/2018 | 11/6/2018- 12/3/2018 | 12/4/2018- 1/1/2019 | 1/2/2019- 2/4/2019 | 2/5/2019- 3/4/2019 | ||||||||||||||
Initial Precision Rate Rate | 7.00% | 7.25% | 7.25% | 7.05% | 8.70% | 8.35% | 9.95% | |||||||||||||||||||||
Initial Precision Rate | 8.00% | 8.20% | 8.50% | 8.90% | 10.20% | 10.70% | 11.30% | |||||||||||||||||||||
1st Index Year Index Return | 1.37% to 8.62% | -12.38% to 2.68% | -9.77% to 3.35% | 0.51% to 4.92% | -0.12% to 11.05% | 7.17% to 11.18% | 0.36% to 12.01% | -0.95% to 3.70% | 0.54% to 4.18% | -1.23% to 14.32% | 9.64% to 19.03% | 15.28% to 37.10% | 20.04% to 32.15% | 6.10% to 23.91% | ||||||||||||||
1st Index Anniversary Credit | 7.00% | -2.38% to 7.25% | 0% or 7.25% | 7.05% | 0% or 8.70% | 8.35% | 9.95% | 0% or 8.00% | 8.20% | 0% or 8.50% | 8.90% | 10.20% | 10.70% | 11.30% | ||||||||||||||
1st Anniversary Renewal Precision Rate | 8.20% | 9.20% | 9.30% | 9.00% | 8.80% | 8.20% | 8.00% | 7.80% | 9.80% | 10.40% | 10.10% | 9.40% | 9.40% | 8.70% | ||||||||||||||
2nd Index Year Index Return | 9.64% to 19.03% | 15.46% to 37.13% | 19.23% to 32.15% | 6.10% to 23.79% | -21.63% to 7.25% | -13.39% to -0.89% | -3.49% to 11.34% | 14.38% to 21.47% | 9.12% to 15.15% | 7.54% to 20.29% | 14.06% to 18.54% | 14.29% to 18.84% | 13.17% to 18.86% | 14.92% to 32.08% | ||||||||||||||
2nd Index Anniversary Credit | 8.20% | 9.20% | 9.30% | 9.00% | -11.63% to 8.80% | -3.39% to 0.00% | 0% or 8.00% | 7.80% | 9.80% | 10.40% | 10.10% | 9.40% | 9.40% | 8.70% | ||||||||||||||
2nd Anniversary Renewal Precision Rate | 9.70% | 9.00% | 9.20% | 8.40% | 8.50% | 11.20% | 13.00% | 13.70% | 12.70% | 13.20% | 13.40% | 11.10% | ||||||||||||||||
3rd Index Year Index Return | 14.17% to 18.84% | 13.59% to 18.43% | 13.17% to 18.86% | 14.92% to 32.08% | 28.56% to 76.12% | 44.83% to 63.86% | 35.91% to 48.11% | 29.10% to 32.82% | 28.88% to 37.24% | 23.10% to 39.89% | 23.77% to 33.97% | 23.15% to 28.46% | ||||||||||||||||
3rd Index Anniversary Credit | 9.70% | 9.00% | 9.20% | 8.40% | 8.50% | 11.20% | 13.00% | 13.70% | 12.70% | 13.20% | 13.40% | 11.10% | ||||||||||||||||
3rd Anniversary Renewal Precision Rate | 13.60% | 11.10% | ||||||||||||||||||||||||||
4th Index Year Index Return | 23.22% to 32.42% | 23.15% to 29.61% | ||||||||||||||||||||||||||
4th Index Anniversary Credit | 13.60% | 11.10% |
Index Effective Date | 6/5/2018- 7/2/2018 | 7/3/2018- 8/6/2018 | 8/7/2018- 9/4/2018 | 9/5/2018- 10/1/2018 | 10/2/2018- 11/5/2018 | 11/6/2018- 12/3/2018 | ||||||
Initial Precision Rate Rate | 8.60% | 8.00% | 8.00% | 8.20% | 8.50% | 8.90% | ||||||
1st Index Year Index Return | 2.57% to 9.03% | 0.15% to 10.42% | -0.95% to 3.70% | 0.54% to 4.18% | -1.23% to 14.32% | 9.64% to 19.03% | ||||||
1st Index Anniversary Credit | 8.60% | 8.00% | 0% or 8.00% | 8.20% | 0% or 8.50% | 8.90% | ||||||
1st Anniversary Renewal Precision Rate | 8.40% | 9.10% | 7.80% | 9.80% | 10.40% | 10.10% | ||||||
2nd Index Year Index Return | 3.27% to 13.68% | 4.48% to 16.22% | 14.38% to 21.47% | 9.12% to 15.15% | 7.54% to 20.29% | 14.06% to 18.54% | ||||||
2nd Index Anniversary Credit | 8.40% | 9.10% | 7.80% | 9.80% | 10.40% | 10.10% | ||||||
2nd Anniversary Renewal Precision Rate | 13.00% | 12.90% | 13.70% | 12.70% | 13.20% | 13.40% | ||||||
3rd Index Year Index Return | 30.76% to 42.59% | 30.96% to 39.05% | 29.10% to 32.82% | 28.88% to 37.24% | 23.10% to 39.89% | 23.77% to 33.97% | ||||||
3rd Index Anniversary Credit | 13.00% | 12.90% | 13.70% | 12.70% | 13.20% | 13.40% |
Index Effective Date | 3/5/2019- 4/1/2019 | 4/2/2019- 5/6/2019 | 5/7/2019- 6/3/2019 | 6/4/2019- 7/1/2019 | 7/2/2019- 8/5/2019 | 8/6/2019- 9/3/2019 | ||||||
Initial Precision Rate | 10.00% | 9.30% | 9.00% | 9.30% | 10.00% | 8.70% | ||||||
1st Index Year Index Return | -21.63% to 8.40% | -13.39% to -0.89% | -0.10% to 13.79% | 3.27% to 13.68% | 4.48% to 16.98% | 14.38% to 22.36% | ||||||
1st Index Anniversary Credit | -11.63% to 10.00% | -3.39% to 0.00% | 0% or 9.00% | 9.30% | 10.00% | 8.70% | ||||||
1st Anniversary Renewal Precision Rate | 8.60% | 12.25% | 13.25% | 13.50% | 13.00% | 13.80% | ||||||
2nd Index Year Index Return | 27.05% to 76.12% | 44.83% to 63.86% | 34.26% to 46.90% | 30.76% to 42.59% | 30.96% to 39.05% | 26.70% to 32.82% | ||||||
2nd Index Anniversary Credit | 8.60% | 12.25% | 13.25% | 13.50% | 13.00% | 13.80% |
The |
Index Effective Date | 8/24/2015- 8/28/2015 | 9/1/2015- 10/5/2015 | 10/6/2015- 11/2/2015 | 11/3/2015- 11/30/2015 | 12/1/2015- 1/4/2016 | 1/5/2016- 2/1/2016 | 2/2/2016- 2/29/2016 | 8/20/2018- 9/4/2018 | 9/5/2018- 10/1/2018 | 10/2/2018- 11/5/2018 | 11/6/2018- 12/3/2018 | 12/4/2018- 1/1/2019 | 1/2/2019- 2/4/2019 | 2/5/2019- 3/4/2019 | ||||||||||||||
Initial Cap | 10.25% | 10.25% | 10.00% | 9.50% | 10.00% | 9.50% | 9.75% | 10.25% | 12.00% | 11.50% | 11.50% | 12.50% | 13.50% | 14.25% | ||||||||||||||
1st Index Year Index Return | 9.63% to 16.32% | 7.21% to 15.39% | -0.29% to 9.13% | -1.00% to 6.98% | 4.21% to 12.82% | 12.51% to 22.44% | 19.69% to 27.29% | -0.95% to 3.70% | 0.54% to 4.18% | -1.23% to 14.32% | 9.64% to 19.03% | 15.28% to 37.10% | 20.04% to 32.15% | 6.10% to 23.91% | ||||||||||||||
1st Index Anniversary Credit | 9.63% to 10.25% | 7.21% to 10.25% | -0.29% to 9.13% | -1.00% to 6.98% | 4.21% to 10.00% | 9.50% | 9.75% | -0.95% to 3.70% | 0.54% to 4.18% | -1.23% to 11.50% | 9.64% to 11.50% | 12.50% | 13.50% | 6.10% to 14.25% | ||||||||||||||
1st Anniversary Renewal Cap | 9.25% | 9.25% | 9.00% | 9.00% | 9.00% | 9.00% | 9.25% | 11.25% | 13.75% | 13.50% | 12.75% | 13.00% | 12.25% | 12.75% | ||||||||||||||
2nd Index Year Index Return | 12.10% to 12.69% | 12.76% to 18.17% | 17.61% to 22.97% | 17.47% to 24.26% | 17.65% to 20.59% | 20.67% to 25.11% | 12.48% to 21.10% | 14.38% to 21.47% | 9.12% to 15.15% | 7.54% to 20.29% | 14.06% to 18.54% | 14.29% to 18.84% | 13.17% to 18.86% | 14.92% to 32.08% | ||||||||||||||
2nd Index Anniversary Credit | 9.25% | 9.25% | 9.00% | 9.00% | 9.00% | 9.00% | 9.25% | 11.25% | 9.12% to 13.75% | 7.54% to 13.50% | 12.75% | 13.00% | 12.25% | 12.75% | ||||||||||||||
2nd Anniversary Renewal Cap | 10.50% | 10.75% | 10.00% | 10.00% | 9.75% | 9.50% | 9.25% | 11.00% | 9.75% | 9.25% | 9.75% | 9.50% | ||||||||||||||||
3rd Index Year Index Return | 17.86% to 18.57% | 13.07% to 17.16% | 2.33% to 13.35% | 1.37% to 7.60% | -12.38% to 5.72% | -7.97% to -4.09% | -1.35% to 4.92% | 29.10% to 32.82% | 28.88% to 37.24% | 23.10% to 39.89% | 23.77% to 33.97% | 23.15% to 28.46% | ||||||||||||||||
3rd Index Anniversary Credit | 10.50% | 10.75% | 2.33% to 10.00% | 1.37% to 7.60% | -10.00% to 5.72% | -7.97% to -4.09% | -1.35% to 4.92% | 11.00% | 9.75% | 9.25% | 9.75% | 9.50% | ||||||||||||||||
3rd Anniversary Renewal Cap | 9.75% | 9.75% | 9.50% | 9.25% | 10.25% | 10.50% | 10.25% | |||||||||||||||||||||
4th Index Year Index Return | -0.95% to 0.13% | -1.23% to 4.05% | 0.30% to 15.08% | 11.00% to 19.03% | 10.85% to 37.13% | 20.04% to 27.32% | 11.54% to 23.91% | |||||||||||||||||||||
4th Index Anniversary Credit | -0.95% to 0.13% | -1.23% to 4.05% | 0.30% to 9.50% | 9.25% | 10.25% | 10.50% | 10.25% | |||||||||||||||||||||
4th Anniversary Renewal Cap | 10.50% | 11.25% | 11.50% | 11.25% | 11.00% | 11.00% | 10.25% | |||||||||||||||||||||
5th Index Year Index Return | 19.21% to 21.47% | 8.19% to 22.36% | 7.54% to 19.15% | 9.45% to 16.17% | 14.00% to 18.84% | 13.47% to 18.86% | 15.37% to 22.41% | |||||||||||||||||||||
5th Index Anniversary Credit | 10.50% | 11.25% | 7.54% to 11.50% | 9.45% to 11.25% | 11.00% | 11.00% | 10.25% | |||||||||||||||||||||
5th Anniversary Renewal Cap | 10.50% | 9.75% | 9.50% | 10.25% | 10.00% | 9.75% | ||||||||||||||||||||||
6th Index Year Index Return | 28.50% to 33.42% | 26.70% to 37.44% | 23.10% to 40.52% | 26.59% to 38.34% | 23.15% to 29.53% | 23.15% to 29.53% | ||||||||||||||||||||||
6th Index Anniversary Credit | 10.50% | 9.75% | 9.50% | 10.25% | 10.00% | 9.75% |
Index Effective Date | 3/1/2016- 4/4/2016 | 4/5/2016- 5/2/2016 | 5/3/2016- 6/6/2016 | 6/7/2016- 7/4/2016 | 7/5/2016- 8/1/2016 | 8/2/2016- 9/5/2016 | ||||||
Initial Cap | 10.00% | 10.25% | 10.50% | 10.75% | 9.50% | 9.25% | ||||||
1st Index Year Index Return | 13.80% to 21.11% | 11.30% to 15.36% | 15.09% to 17.38% | 14.85% to 20.94% | 13.49% to 16.47% | 10.91% to 14.86% | ||||||
1st Index Anniversary Credit | 10.00% | 10.25% | 10.50% | 10.75% | 9.50% | 9.25% | ||||||
1st Anniversary Renewal Cap | 9.00% | 9.75% | 10.50% | 10.75% | 10.75% | 10.50% | ||||||
2nd Index Year Index Return | 9.46% to 17.83% | 10.23% to 15.65% | 10.12% to 15.40% | 11.29% to 14.51% | 12.50% to 14.89% | 14.11% to 18.57% | ||||||
2nd Index Anniversary Credit | 9.00% | 9.75% | 10.12% to 10.50% | 10.75% | 10.75% | 10.50% | ||||||
2nd Anniversary Renewal Cap | 9.50% | 9.25% | 10.25% | 10.25% | 9.75% | 9.75% | ||||||
3rd Index Year Index Return | -0.12% to 11.05% | 7.25% to 11.18% | -0.09% to 12.01% | 3.72% to 10.42% | 4.98% to 9.27% | -0.63% to 3.71% | ||||||
3rd Index Anniversary Credit | -0.12% to 9.50% | 7.25% to 9.25% | -0.09% to 10.25% | 3.72% to 10.25% | 4.98% to 9.27% | -0.63% to 3.71% | ||||||
3rd Anniversary Renewal Cap | 11.00% | 10.50% | 10.25% | 10.00% | 11.50% | 10.50% | ||||||
4th Index Year Index Return | -21.63% to 12.08% | -8.16% to -1.63% | -3.49% to 13.79% | 3.56% to 12.50% | 4.68% to 11.55% | 12.37% to 22.36% | ||||||
4th Index Anniversary Credit | -10.00% to 11.00% | -8.16% to -1.63% | -3.49% to 10.25% | 3.56% to 10.00% | 4.68% to 11.50% | 10.50% | ||||||
4th Anniversary Renewal Cap | 12.00% | 11.50% | 11.25% | 10.75% | 10.50% | 10.50% | ||||||
5th Index Year Index Return | 20.39% to 76.12% | 44.93% to 53.42% | 30.76% to 47.51% | 30.76% to 40.53% | 30.96% to 38.96% | 26.70% to 34.25% | ||||||
5th Index Anniversary Credit | 12.00% | 11.50% | 11.25% | 10.75% | 10.50% | 10.50% |
Index Effective Date | 3/5/2019- 4/1/2019 | 4/2/2019- 5/6/2019 | 5/7/2019- 6/3/2019 | 6/4/2019- 7/1/2019 | 7/2/2019- 8/5/2019 | 8/6/2019- 9/3/2019 | ||||||
Initial Cap | 15.25% | 14.50% | 14.50% | 13.25% | 14.50% | 14.50% | ||||||
1st Index Year Index Return | -21.63% to 8.40% | -13.39% to -0.89% | -0.10% to 13.79% | 3.27% to 13.68% | 4.48% to 16.98% | 14.38% to 22.36% | ||||||
1st Index Anniversary Credit | -10.00% to 8.40% | -10.00% to -0.89% | -0.10% to 13.79% | 3.27% to 13.25% | 4.48% to 14.50% | 14.38% to 14.50% | ||||||
1st Anniversary Renewal Cap | 13.00% | 11.75% | 11.50% | 11.25% | 10.75% | 10.50% | ||||||
2nd Index Year Index Return | 27.05% to 76.12% | 44.83% to 63.86% | 34.26% to 46.90% | 30.76% to 42.59% | 30.96% to 39.05% | 26.70% to 32.82% | ||||||
2nd Index Anniversary Credit | 13.00% | 11.75% | 11.50% | 11.25% | 10.75% | 10.50% |
The Buffer was 10% for all time periods. |
Index Effective Date | 9/16/2013- 9/30/2013 | 10/1/2013- 11/4/2013 | 11/5/2013- 12/2/2013 | 12/3/2013- 1/6/2014 | 1/7/2014- 2/3/2014 | 2/4/2014- 3/3/2014 | 3/4/2014- 3/31/2014 | |||||||
Initial Cap | 13.00% | 14.00% | 14.00% | 13.00% | 13.00% | 12.75% | 12.75% | |||||||
1st Index Year Index Return | 16.14% to 17.75% | 8.20% to 18.93% | 13.52% to 16.30% | 9.63% to 16.27% | 7.81% to 17.69% | 13.49% to 17.75% | 8.90% to 13.04% | |||||||
1st Index Anniversary Credit | 13.00% | 8.20% to 14.00% | 13.52% to 14.00% | 9.63% to 13.00% | 7.81% to 13.00% | 12.75% | 8.90% to 12.75% | |||||||
1st Anniversary Renewal Cap | 12.75% | 12.50% | 13.50% | 12.75% | 11.75% | 12.00% | 11.75% | |||||||
2nd Index Year Index Return | -5.10% to -0.18% | -1.15% to 9.15% | -0.80% to 3.77% | -2.76% to 5.09% | -8.75% to -4.09% | -11.58% to -5.43% | -4.73% to -0.88% | |||||||
2nd Index Anniversary Credit | 0% | 0% to 9.15% | 0% to 3.77% | 0% to 5.09% | 0% | -1.58% to 0.00% | 0% | |||||||
2nd Anniversary Renewal Cap | 10.50% | 13.50% | 15.50% | 13.50% | 12.50% | 13.25% | 15.50% | |||||||
3rd Index Year Index Return | 7.21% to 14.78% | -0.81% to 12.34% | 1.50% to 6.98% | 5.40% to 14.41% | 16.77% to 22.16% | 19.55% to 27.29% | 14.25% to 19.25% | |||||||
3rd Index Anniversary Credit | 7.21% to 10.50% | 0% to 12.34% | 1.50% to 6.98% | 5.40% to 13.50% | 12.50% | 13.25% | 14.25% to 15.50% | |||||||
3rd Anniversary Renewal Cap | 11.25% | 10.75% | 11.00% | 11.25% | 10.75% | 10.25% | 12.00% | |||||||
4th Index Year Index Return | 15.34% to 17.22% | 17.02% to 24.26% | 17.47% to 21.56% | 17.22% to 20.67% | 15.30% to 25.34% | 14.08% to 17.56% | 10.45% to 17.30% | |||||||
4th Index Anniversary Credit | 11.25% | 10.75% | 11.00% | 11.25% | 10.75% | 10.25% | 10.45% to 12.00% | |||||||
4th Anniversary Renewal Cap | 9.25% | 9.75% | 9.50% | 9.50% | 9.75% | 9.25% | 12.00% | |||||||
5th Index Year Index Return | 15.37% to 16.93% | 2.66% to 15.64% | 1.96% to 8.62% | -12.38% to 5.72% | -7.35% to 2.87% | 0.51% to 3.38% | 0.01% to 8.08% | |||||||
5th Index Anniversary Credit | 9.25% | 2.66% to 9.75% | 1.96% to 8.62% | -2.38% to 5.72% | 0% to 2.87% | 0.51% to 3.38% | 0.01% to 8.08% | |||||||
5th Anniversary Renewal Cap | 10.50% | 10.75% | 10.50% | 12.00% | 12.50% | 13.25% | 11.75% | |||||||
6th Index Year Index Return | 1.62% to 4.05% | -1.23% to 15.08% | 9.64% to 17.66% | 10.85% to 37.13% | 19.23% to 27.32% | 6.10% to 23.91% | -21.63% to 12.08% | |||||||
6th Index Anniversary Credit | 1.62% to 4.05% | 0% to 10.75% | 9.64% to 10.50% | 10.85% to 12.00% | 12.50% | 6.10% to 13.25% | -11.63% to 11.75% | |||||||
6th Anniversary Renewal Cap | 12.00% | 12.50% | 12.75% | 13.25% | 12.75% | 12.25% | 11.75% | |||||||
7th Index Year Index Return | 8.19% to 13.16% | 7.62% to 20.29% | 14.06% to 17.83% | 13.59% to 18.84% | 13.17% to 17.89% | 14.92% to 32.08% | 20.39% to 76.12% | |||||||
7th Index Anniversary Credit | 8.19% to 12.00% | 7.62% to 12.50% | 12.75% | 13.25% | 12.75% | 12.25% | 11.75% | |||||||
7th Anniversary Renewal Cap | 19.25% | 17.50% | 19.00% | 17.50% | ||||||||||
8th Index Year Index Return | 31.28% to 37.44% | 23.40% to 40.52% | 24.75% to 33.97% | 23.15% to 29.61% | ||||||||||
8th Index Anniversary Credit | 19.25% | 17.50% | 19.00% | 17.50% |
Index Effective Date | 8/20/2018- 9/4/2018 | 9/5/2018- 10/1/2018 | 10/2/2018- 11/5/2018 | 11/6/2018- 12/3/2018 | 12/4/2018- 1/1/2019 | 1/2/2019- 2/4/2019 | 2/5/2019- 3/4/2019 | |||||||
Initial Cap | 14.00% | 15.25% | 15.00% | 15.25% | 16.25% | 16.50% | 17.25% | |||||||
1st Index Year Index Return | -0.95% to 3.70% | 0.54% to 4.18% | -1.23% to 14.32% | 9.64% to 19.03% | 15.28% to 37.10% | 20.04% to 32.15% | 6.10% to 23.91% | |||||||
1st Index Anniversary Credit | 0% to 3.70% | 0.54% to 4.18% | 0% to 14.32% | 9.64% to 15.25% | 15.28% to 16.25% | 16.50% | 6.10% to 17.25% | |||||||
1st Anniversary Renewal Cap | 13.25% | 15.50% | 15.75% | 16.00% | 15.50% | 15.00% | 14.25% | |||||||
2nd Index Year Index Return | 14.38% to 21.47% | 9.12% to 15.15% | 7.54% to 20.29% | 14.06% to 18.54% | 14.29% to 18.84% | 13.17% to 18.86% | 14.92% to 32.08% | |||||||
2nd Index Anniversary Credit | 13.25% | 9.12% to 15.15% | 7.54% to 15.75% | 14.06% to 16.00% | 14.29% to 15.50% | 13.17% to 15.00% | 14.25% | |||||||
2nd Anniversary Renewal Cap | 22.50% | 20.00% | 21.50% | 22.25% | 20.00% | |||||||||
3rd Index Year Index Return | 29.10% to 32.82% | 28.88% to 37.24% | 23.10% to 39.89% | 23.77% to 33.97% | 23.15% to 28.46% | |||||||||
3rd Index Anniversary Credit | 22.50% | 20.00% | 21.50% | 22.25% | 20.00% |
Index Effective Date | 3/5/2019- 4/1/2019 | 4/2/2019- 5/6/2019 | 5/7/2019- 6/3/2019 | 6/4/2019- 7/1/2019 | 7/2/2019- 8/5/2019 | 8/6/2019- 9/3/2019 | ||||||
Initial Cap | 16.75% | 15.25% | 14.75% | 15.00% | 16.25% | 14.25% | ||||||
1st Index Year Index Return | -21.63% to 8.40% | -13.39% to -0.89% | -0.10% to 13.79% | 3.27% to 13.68% | 4.48% to 16.98% | 14.38% to 22.36% | ||||||
1st Index Anniversary Credit | -11.63% to 8.40% | -3.39% to 0.00% | 0% to 13.79% | 3.27% to 13.68% | 4.48% to 16.25% | 14.25% | ||||||
1st Anniversary Renewal Cap | 13.75% | 15.50% | 17.00% | 17.50% | 20.00% | 22.00% | ||||||
2nd Index Year Index Return | 27.05% to 76.12% | 44.83% to 63.86% | 34.26% to 46.90% | 30.76% to 42.59% | 30.96% to 39.05% | 26.70% to 32.82% | ||||||
2nd Index Anniversary Credit | 13.75% | 15.50% | 17.00% | 17.50% | 20.00% | 22.00% |
Index Effective Date | 4/1/2014- 5/5/2014 | 5/6/2014- 6/2/2014 | 6/3/2014- 6/30/2014 | 7/1/2014- 8/4/2014 | 8/5/2014- 9/1/2014 | 9/2/2014- 10/6/2014 | ||||||
Initial Cap | 12.75% | 13.00% | 13.00% | 13.00% | 12.75% | 12.75% | ||||||
1st Index Year Index Return | 9.24% to 15.24% | 9.59% to 13.51% | 4.93% to 9.87% | 3.98% to 8.98% | -6.52% to 9.35% | -5.10% to 0.97% | ||||||
1st Index Anniversary Credit | 9.24% to 12.75% | 9.59% to 13.00% | 4.93% to 9.87% | 3.98% to 8.98% | 0% to 9.35% | 0% to 0.97% | ||||||
1st Anniversary Renewal Cap | 11.00% | 11.00% | 10.75% | 10.50% | 10.75% | 10.50% | ||||||
2nd Index Year Index Return | -2.86% to 0.64% | -4.13% to -0.21% | -4.84% to 1.70% | 0.80% to 4.88% | 3.65% to 16.32% | 7.21% to 14.05% | ||||||
2nd Index Anniversary Credit | 0% to 0.64% | 0% | 0% to 1.70% | 0.80% to 4.88% | 3.65% to 10.75% | 7.21% to 10.50% | ||||||
2nd Anniversary Renewal Cap | 15.50% | 13.75% | 12.50% | 13.25% | 13.00% | 11.25% | ||||||
3rd Index Year Index Return | 11.82% to 17.00% | 15.09% to 17.38% | 14.95% to 21.92% | 13.49% to 15.60% | 10.91% to 14.08% | 12.75% to 17.98% | ||||||
3rd Index Anniversary Credit | 11.82% to 15.50% | 13.75% | 12.50% | 13.25% | 10.91% to 13.00% | 11.25% | ||||||
3rd Anniversary Renewal Cap | 12.00% | 10.50% | 10.25% | 10.25% | 10.00% | 9.25% | ||||||
4th Index Year Index Return | 9.46% to 15.21% | 11.36% to 14.75% | 11.40% to 14.71% | 11.70% to 15.09% | 14.35% to 18.57% | 13.14% to 17.53% | ||||||
4th Index Anniversary Credit | 9.46% to 12.00% | 10.50% | 10.25% | 10.25% | 10.00% | 9.25% | ||||||
4th Anniversary Renewal Cap | 11.50% | 13.75% | 11.75% | 10.75% | 10.75% | 10.50% | ||||||
5th Index Year Index Return | 7.17% to 11.14% | -0.09% to 9.72% | -0.09% to 8.40% | -0.20% to 10.42% | -0.95% to 3.70% | -1.23% to 4.18% | ||||||
5th Index Anniversary Credit | 7.17% to 11.14% | 0% to 9.72% | 0% to 8.40% | 0% to 10.42% | 0% to 3.70% | 0% to 4.18% | ||||||
5th Anniversary Renewal Cap | 10.75% | 10.75% | 11.00% | 12.00% | 10.50% | 12.00% | ||||||
6th Index Year Index Return | -13.84% to -0.89% | -2.87% to 12.26% | 3.27% to 13.79% | 4.48% to 16.23% | 14.38% to 21.47% | 8.19% to 22.36% | ||||||
6th Index Anniversary Credit | -3.84% to 0.00% | 0% to 10.75% | 3.27% to 11.00% | 4.48% to 12.00% | 10.50% | 8.19% to 12.00% | ||||||
6th Anniversary Renewal Cap | 14.25% | 15.50% | 16.00% | 18.00% | 20.25% | 19.25% | ||||||
7th Index Year Index Return | 44.83% to 63.86% | 36.59% to 47.51% | 30.76% to 42.59% | 30.96% to 39.05% | 28.28% to 33.42% | 26.16% to 37.44% | ||||||
7th Index Anniversary Credit | 14.25% | 15.50% | 16.00% | 18.00% | 20.25% | 19.25% |
Eligible Person’s Age (or younger Eligible Person’s age for joint Income Payments) | Income Percentages | Income Percentage Increases | |||
Level Income | Increasing Income | ||||
Single Income Payments | Joint Income Payments | Single Income Payments | Joint Income Payments | ||
0-50 | 4.00% | 3.50% | 3.00% | 2.50% | 0.25% |
51 | 4.10% | 3.60% | 3.10% | 2.60% | 0.25% |
52 | 4.20% | 3.70% | 3.20% | 2.70% | 0.25% |
53 | 4.30% | 3.80% | 3.30% | 2.80% | 0.25% |
54 | 4.40% | 3.90% | 3.40% | 2.90% | 0.25% |
55 | 4.50% | 4.00% | 3.50% | 3.00% | 0.30% |
56 | 4.60% | 4.10% | 3.60% | 3.10% | 0.30% |
57 | 4.70% | 4.20% | 3.70% | 3.20% | 0.30% |
58 | 4.80% | 4.30% | 3.80% | 3.30% | 0.30% |
59 | 4.90% | 4.40% | 3.90% | 3.40% | 0.30% |
60 | 5.00% | 4.50% | 4.00% | 3.50% | 0.35% |
61 | 5.10% | 4.60% | 4.10% | 3.60% | 0.35% |
62 | 5.20% | 4.70% | 4.20% | 3.70% | 0.35% |
63 | 5.30% | 4.80% | 4.30% | 3.80% | 0.35% |
64 | 5.40% | 4.90% | 4.40% | 3.90% | 0.35% |
65 | 5.50% | 5.00% | 4.50% | 4.00% | 0.40% |
66 | 5.60% | 5.10% | 4.60% | 4.10% | 0.40% |
67 | 5.70% | 5.20% | 4.70% | 4.20% | 0.40% |
68 | 5.80% | 5.30% | 4.80% | 4.30% | 0.40% |
69 | 5.90% | 5.40% | 4.90% | 4.40% | 0.40% |
70 | 6.00% | 5.50% | 5.00% | 4.50% | 0.45% |
71 | 6.10% | 5.60% | 5.10% | 4.60% | 0.45% |
72 | 6.20% | 5.70% | 5.20% | 4.70% | 0.45% |
73 | 6.30% | 5.80% | 5.30% | 4.80% | 0.45% |
74 | 6.40% | 5.90% | 5.40% | 4.90% | 0.45% |
75 | 6.50% | 6.00% | 5.50% | 5.00% | 0.50% |
76 | 6.60% | 6.10% | 5.60% | 5.10% | 0.50% |
77 | 6.70% | 6.20% | 5.70% | 5.20% | 0.50% |
78 | 6.80% | 6.30% | 5.80% | 5.30% | 0.50% |
79 | 6.90% | 6.40% | 5.90% | 5.40% | 0.50% |
80+ | 7.00% | 6.50% | 6.00% | 5.50% | 0.55% |
Eligible Person’s Age (or younger Eligible Person’s age for joint Income Payments) | Income Percentages | Income Percentage Increases | |||
Level Income | Increasing Income | ||||
Single Income Payments | Joint Income Payments | Single Income Payments | Joint Income Payments | ||
0-50 | 4.20% | 3.70% | 3.20% | 2.70% | 0.25% |
51 | 4.30% | 3.80% | 3.30% | 2.80% | 0.25% |
52 | 4.40% | 3.90% | 3.40% | 2.90% | 0.25% |
53 | 4.50% | 4.00% | 3.50% | 3.00% | 0.25% |
54 | 4.60% | 4.10% | 3.60% | 3.10% | 0.25% |
55 | 4.70% | 4.20% | 3.70% | 3.20% | 0.30% |
56 | 4.80% | 4.30% | 3.80% | 3.30% | 0.30% |
57 | 4.90% | 4.40% | 3.90% | 3.40% | 0.30% |
58 | 5.00% | 4.50% | 4.00% | 3.50% | 0.30% |
59 | 5.10% | 4.60% | 4.10% | 3.60% | 0.30% |
60 | 5.20% | 4.70% | 4.20% | 3.70% | 0.35% |
61 | 5.30% | 4.80% | 4.30% | 3.80% | 0.35% |
62 | 5.40% | 4.90% | 4.40% | 3.90% | 0.35% |
63 | 5.50% | 5.00% | 4.50% | 4.00% | 0.35% |
64 | 5.60% | 5.10% | 4.60% | 4.10% | 0.35% |
65 | 5.70% | 5.20% | 4.70% | 4.20% | 0.40% |
66 | 5.80% | 5.30% | 4.80% | 4.30% | 0.40% |
67 | 5.90% | 5.40% | 4.90% | 4.40% | 0.40% |
68 | 6.00% | 5.50% | 5.00% | 4.50% | 0.40% |
69 | 6.10% | 5.60% | 5.10% | 4.60% | 0.40% |
70 | 6.20% | 5.70% | 5.20% | 4.70% | 0.45% |
71 | 6.30% | 5.80% | 5.30% | 4.80% | 0.45% |
72 | 6.40% | 5.90% | 5.40% | 4.90% | 0.45% |
73 | 6.50% | 6.00% | 5.50% | 5.00% | 0.45% |
74 | 6.60% | 6.10% | 5.60% | 5.10% | 0.45% |
75 | 6.70% | 6.20% | 5.70% | 5.20% | 0.50% |
76 | 6.80% | 6.30% | 5.80% | 5.30% | 0.50% |
77 | 6.90% | 6.40% | 5.90% | 5.40% | 0.50% |
78 | 7.00% | 6.50% | 6.00% | 5.50% | 0.50% |
79 | 7.10% | 6.60% | 6.10% | 5.60% | 0.50% |
80+ | 7.20% | 6.70% | 6.20% | 5.70% | 0.55% |
Eligible Person’s Age (or younger Eligible Person’s age for joint Income Payments) | Income Percentages | Income Percentage Increases | |||
Level Income | Increasing Income | ||||
Single Income Payments | Joint Income Payments | Single Income Payments | Joint Income Payments | ||
0-50 | 4.70% | 4.20% | 3.70% | 3.20% | 0.25% |
51 | 4.80% | 4.30% | 3.80% | 3.30% | 0.25% |
52 | 4.90% | 4.40% | 3.90% | 3.40% | 0.25% |
53 | 5.00% | 4.50% | 4.00% | 3.50% | 0.25% |
54 | 5.10% | 4.60% | 4.10% | 3.60% | 0.25% |
55 | 5.20% | 4.70% | 4.20% | 3.70% | 0.30% |
56 | 5.30% | 4.80% | 4.30% | 3.80% | 0.30% |
57 | 5.40% | 4.90% | 4.40% | 3.90% | 0.30% |
58 | 5.50% | 5.00% | 4.50% | 4.00% | 0.30% |
59 | 5.60% | 5.10% | 4.60% | 4.10% | 0.30% |
60 | 5.70% | 5.20% | 4.70% | 4.20% | 0.35% |
61 | 5.80% | 5.30% | 4.80% | 4.30% | 0.35% |
62 | 5.90% | 5.40% | 4.90% | 4.40% | 0.35% |
63 | 6.00% | 5.50% | 5.00% | 4.50% | 0.35% |
64 | 6.10% | 5.60% | 5.10% | 4.60% | 0.35% |
65 | 6.20% | 5.70% | 5.20% | 4.70% | 0.40% |
66 | 6.30% | 5.80% | 5.30% | 4.80% | 0.40% |
67 | 6.40% | 5.90% | 5.40% | 4.90% | 0.40% |
68 | 6.50% | 6.00% | 5.50% | 5.00% | 0.40% |
69 | 6.60% | 6.10% | 5.60% | 5.10% | 0.40% |
70 | 6.70% | 6.20% | 5.70% | 5.20% | 0.45% |
71 | 6.80% | 6.30% | 5.80% | 5.30% | 0.45% |
72 | 6.90% | 6.40% | 5.90% | 5.40% | 0.45% |
73 | 7.00% | 6.50% | 6.00% | 5.50% | 0.45% |
74 | 7.10% | 6.60% | 6.10% | 5.60% | 0.45% |
75 | 7.20% | 6.70% | 6.20% | 5.70% | 0.50% |
76 | 7.30% | 6.80% | 6.30% | 5.80% | 0.50% |
77 | 7.40% | 6.90% | 6.40% | 5.90% | 0.50% |
78 | 7.50% | 7.00% | 6.50% | 6.00% | 0.50% |
79 | 7.60% | 7.10% | 6.60% | 6.10% | 0.50% |
80+ | 7.70% | 7.20% | 6.70% | 6.20% | 0.55% |
Eligible Person’s Age (or younger Eligible Person’s age for joint Income Payments) | Income Percentages | Income Percentage Increases | |||
Level Income | Increasing Income | ||||
Single Income Payments | Joint Income Payments | Single Income Payments | Joint Income Payments | ||
0-50 | 4.00% | 3.50% | 3.20% | 2.70% | 0.25% |
51 | 4.10% | 3.60% | 3.30% | 2.80% | 0.25% |
52 | 4.20% | 3.70% | 3.40% | 2.90% | 0.25% |
53 | 4.30% | 3.80% | 3.50% | 3.00% | 0.25% |
54 | 4.40% | 3.90% | 3.60% | 3.10% | 0.25% |
55 | 4.50% | 4.00% | 3.70% | 3.20% | 0.30% |
56 | 4.60% | 4.10% | 3.80% | 3.30% | 0.30% |
57 | 4.70% | 4.20% | 3.90% | 3.40% | 0.30% |
58 | 4.80% | 4.30% | 4.00% | 3.50% | 0.30% |
59 | 4.90% | 4.40% | 4.10% | 3.60% | 0.30% |
60 | 5.00% | 4.50% | 4.20% | 3.70% | 0.35% |
61 | 5.10% | 4.60% | 4.30% | 3.80% | 0.35% |
62 | 5.20% | 4.70% | 4.40% | 3.90% | 0.35% |
63 | 5.30% | 4.80% | 4.50% | 4.00% | 0.35% |
64 | 5.40% | 4.90% | 4.60% | 4.10% | 0.35% |
65 | 5.50% | 5.00% | 4.70% | 4.20% | 0.40% |
66 | 5.60% | 5.10% | 4.80% | 4.30% | 0.40% |
67 | 5.70% | 5.20% | 4.90% | 4.40% | 0.40% |
68 | 5.80% | 5.30% | 5.00% | 4.50% | 0.40% |
69 | 5.90% | 5.40% | 5.10% | 4.60% | 0.40% |
70 | 6.00% | 5.50% | 5.20% | 4.70% | 0.45% |
71 | 6.10% | 5.60% | 5.30% | 4.80% | 0.45% |
72 | 6.20% | 5.70% | 5.40% | 4.90% | 0.45% |
73 | 6.30% | 5.80% | 5.50% | 5.00% | 0.45% |
74 | 6.40% | 5.90% | 5.60% | 5.10% | 0.45% |
75 | 6.50% | 6.00% | 5.70% | 5.20% | 0.50% |
76 | 6.60% | 6.10% | 5.80% | 5.30% | 0.50% |
77 | 6.70% | 6.20% | 5.90% | 5.40% | 0.50% |
78 | 6.80% | 6.30% | 6.00% | 5.50% | 0.50% |
79 | 6.90% | 6.40% | 6.10% | 5.60% | 0.50% |
80+ | 7.00% | 6.50% | 6.20% | 5.70% | 0.55% |
Eligible Person’s Age (or younger Eligible Person’s age for joint Income Payments) | Income Percentages | Income Percentage Increases | |||
Level Income | Increasing Income | ||||
Single Income Payments | Joint Income Payments | Single Income Payments | Joint Income Payments | ||
0-50 | 4.50% | 4.00% | 3.70% | 3.20% | 0.25% |
51 | 4.60% | 4.10% | 3.80% | 3.30% | 0.25% |
52 | 4.70% | 4.20% | 3.90% | 3.40% | 0.25% |
53 | 4.80% | 4.30% | 4.00% | 3.50% | 0.25% |
54 | 4.90% | 4.40% | 4.10% | 3.60% | 0.25% |
55 | 5.00% | 4.50% | 4.20% | 3.70% | 0.30% |
56 | 5.10% | 4.60% | 4.30% | 3.80% | 0.30% |
57 | 5.20% | 4.70% | 4.40% | 3.90% | 0.30% |
58 | 5.30% | 4.80% | 4.50% | 4.00% | 0.30% |
59 | 5.40% | 4.90% | 4.60% | 4.10% | 0.30% |
60 | 5.50% | 5.00% | 4.70% | 4.20% | 0.35% |
61 | 5.60% | 5.10% | 4.80% | 4.30% | 0.35% |
62 | 5.70% | 5.20% | 4.90% | 4.40% | 0.35% |
63 | 5.80% | 5.30% | 5.00% | 4.50% | 0.35% |
64 | 5.90% | 5.40% | 5.10% | 4.60% | 0.35% |
65 | 6.00% | 5.50% | 5.20% | 4.70% | 0.40% |
66 | 6.10% | 5.60% | 5.30% | 4.80% | 0.40% |
67 | 6.20% | 5.70% | 5.40% | 4.90% | 0.40% |
68 | 6.30% | 5.80% | 5.50% | 5.00% | 0.40% |
69 | 6.40% | 5.90% | 5.60% | 5.10% | 0.40% |
70 | 6.50% | 6.00% | 5.70% | 5.20% | 0.45% |
71 | 6.60% | 6.10% | 5.80% | 5.30% | 0.45% |
72 | 6.70% | 6.20% | 5.90% | 5.40% | 0.45% |
73 | 6.80% | 6.30% | 6.00% | 5.50% | 0.45% |
74 | 6.90% | 6.40% | 6.10% | 5.60% | 0.45% |
75 | 7.00% | 6.50% | 6.20% | 5.70% | 0.50% |
76 | 7.10% | 6.60% | 6.30% | 5.80% | 0.50% |
77 | 7.20% | 6.70% | 6.40% | 5.90% | 0.50% |
78 | 7.30% | 6.80% | 6.50% | 6.00% | 0.50% |
79 | 7.40% | 6.90% | 6.60% | 6.10% | 0.50% |
80+ | 7.50% | 7.00% | 6.70% | 6.20% | 0.55% |
Eligible Person’s Age (or younger Eligible Person’s age for joint Income Payments) | Income Percentages | Income Percentage Increases | |||
Level Income | Increasing Income | ||||
Single Income Payments | Joint Income Payments | Single Income Payments | Joint Income Payments | ||
0-50 | 4.30% | 3.80% | 3.30% | 2.80% | 0.25% |
51 | 4.40% | 3.90% | 3.40% | 2.90% | 0.25% |
52 | 4.50% | 4.00% | 3.50% | 3.00% | 0.25% |
53 | 4.60% | 4.10% | 3.60% | 3.10% | 0.25% |
54 | 4.70% | 4.20% | 3.70% | 3.20% | 0.25% |
55 | 4.80% | 4.30% | 3.80% | 3.30% | 0.30% |
56 | 4.90% | 4.40% | 3.90% | 3.40% | 0.30% |
57 | 5.00% | 4.50% | 4.00% | 3.50% | 0.30% |
58 | 5.10% | 4.60% | 4.10% | 3.60% | 0.30% |
59 | 5.20% | 4.70% | 4.20% | 3.70% | 0.30% |
60 | 5.30% | 4.80% | 4.30% | 3.80% | 0.35% |
61 | 5.40% | 4.90% | 4.40% | 3.90% | 0.35% |
62 | 5.50% | 5.00% | 4.50% | 4.00% | 0.35% |
63 | 5.60% | 5.10% | 4.60% | 4.10% | 0.35% |
64 | 5.70% | 5.20% | 4.70% | 4.20% | 0.35% |
65 | 5.80% | 5.30% | 4.80% | 4.30% | 0.40% |
66 | 5.90% | 5.40% | 4.90% | 4.40% | 0.40% |
67 | 6.00% | 5.50% | 5.00% | 4.50% | 0.40% |
68 | 6.10% | 5.60% | 5.10% | 4.60% | 0.40% |
69 | 6.20% | 5.70% | 5.20% | 4.70% | 0.40% |
70 | 6.30% | 5.80% | 5.30% | 4.80% | 0.45% |
71 | 6.40% | 5.90% | 5.40% | 4.90% | 0.45% |
72 | 6.50% | 6.00% | 5.50% | 5.00% | 0.45% |
73 | 6.60% | 6.10% | 5.60% | 5.10% | 0.45% |
74 | 6.70% | 6.20% | 5.70% | 5.20% | 0.45% |
75 | 6.80% | 6.30% | 5.80% | 5.30% | 0.50% |
76 | 6.90% | 6.40% | 5.90% | 5.40% | 0.50% |
77 | 7.00% | 6.50% | 6.00% | 5.50% | 0.50% |
78 | 7.10% | 6.60% | 6.10% | 5.60% | 0.50% |
79 | 7.20% | 6.70% | 6.20% | 5.70% | 0.50% |
80+ | 7.30% | 6.80% | 6.30% | 5.80% | 0.55% |
The Alternate Minimum Value continues to be available to Contracts issued in Pennsylvania. For all other states, the Alternate Minimum Value became unavailable to Contracts: |
• issued in California, Hawaii, Indiana, Montana, Nebraska, and Rhode Island on or after January 27, 2020; and |
• issued in all other states on or after November 18, 2019. |
We use 70% if your Contract was issued in …. | We use 87.5% if your Contract was issued in …. |
• Pennsylvania from April 29, 2019 to February 21, 2020, • California and Montana on or after July 22, 2019 • New Hampshire on or after June 24, 2019 • any other state on or after April 29, 2019 | • Pennsylvania before April 29, 2019, or on or after February 24, 2020, • California and Montana before July 22, 2019 • New Hampshire before June 24, 2019 • any other state before April 29, 2019 |
Crediting Method / Index Options | Availability Restrictions: | |
iShares ® MSCI Emerging Markets ETF with the Index Protection Strategy with DPSC, Index Protection Strategy with Cap, Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy 1-year Term | – For Contracts issued in California and Montana, these first became available to newly issued Contracts on July 22, 2019. – For Contracts issued in New Hampshire, these first became available to newly issued Contracts on June 24, 2019. – For Contracts issued in all other states, these first became available to newly issued Contracts on April 29, 2019. – For Contracts issued before April 29, 2019, these first became available |
Index Performance Strategy 3-year Term with 20% Buffer available to Contracts issued before April 30, 2021 | – Not available to Contracts issued – For Contracts issued in Virginia, these first became available to newly issued Contracts on May 19, 2020. – For Contracts issued in Montana, these first became available to newly issued Contracts on June 23, 2020. – For Contracts issued in Pennsylvania, these first became available to newly issued Contracts on July 21, 2020. – For Contracts issued in – For Contracts issued in all other states, these first became available to newly issued Contracts on May 1, 2020. – For Contracts issued before May 1, 2020, | |
Index Performance Strategy 3-year and 6-year Terms with Participation Rate available to Contracts issued on or after April 30, 2021 | – Not available to Contracts issued in Hawaii, or to Contracts issued before April 30, 2021. – For Contracts issued in New Hampshire, these first became available to newly issued Contracts on April 30, 2021. – For Contracts issued in Montana, New Jersey, Utah, and Virginia, these first became available to newly issued Contracts on June 21, 2021. – For Contracts issued in Louisiana, these first became available to newly issued Contracts on July 19, 2021. – For Contracts issued in all other states, they first became available to newly issued Contracts on April 30, 2021. |
ISSUE STATE | FEATURE AND BENEFITS | VARIATION |
California | Eligible Person(s) and Covered Person(s) See section 2 | • We do not remove a person as an Eligible Person(s) or Covered Person(s) following an assignment, ownership change, or Beneficiary change. • If you are the sole individual Owner or a Joint Owner and select joint Income Payments, you must designate an Owner to be a Covered Person. |
Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 | We cannot restrict assignments or changes of ownership. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. • If you assign the Contract on or before the Income Benefit Date and as a result none of the Eligible Person(s) are an Owner (or Annuitant if the Owner is a non-individual), Income Payments will not be available, but the Income Benefit and its associated rider fee will continue. Your only recourse is to restore an Eligible Person as an Owner by assigning or changing ownership, or to remove the Income Benefit if you no longer want to pay the rider fee. • If you assign the Contract after the Income Benefit Date and a Covered Person(s) who was previously an Owner no longer has that position, the Income Benefit and any Income Payments may end even if the Covered Person is still alive . | |
Free Look/Right to Examine Period See section 3 | For Owners age 60 or older (or Annuitants age 60 or older for non-individually owned Contracts), we are required to allocate your initial Purchase Payment to the AZL Government Money Market Fund during the 30 day free look period unless you specify otherwise on the appropriate form. If you want to immediately apply your Purchase Payment to the Index Options | |
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 | 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 |
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 • We do not change the Determining Life (Lives) following an assignment or ownership change. • If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. • If you assign the Contract on or before the Income Benefit Date and as a result none of the Eligible Person(s) are an Owner (or Annuitant if the Owner is a non-individual), Income Payments will not be available, but the Income Benefit and its associated rider fee will continue . Your only recourse is to restore an Eligible Person as an Owner by assigning or changing ownership, or to remove the Income Benefit if you no longer want to pay the rider fee. • If you assign the Contract after the Income Benefit Date and a Covered Person(s) who was previously an Owner (or Annuitant if the Owner is a non-individual) no longer has that position, the Income Benefit and any Income Payments may end even if the Covered Person is still alive. |
See section | • continues the Contract, the Income Benefit and • elects to This means if you assign the Contract after the Income Benefit Date, Income Payments may end even if the Covered Person is still alive. | |
Florida | Withdrawal Charges See Fee Tables and section 6 | The total withdrawal charge on a partial or full withdrawal cannot be greater than 10% of the Contract Value withdrawn. |
Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 | We cannot restrict assignments or changes of ownership. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. | |
Purchase Requirements See section 3 | ||
When Annuity Payments Begin See section 8 | The earliest acceptable Annuity Date is one year after the Issue Date. |
ISSUE STATE | FEATURE AND BENEFITS | VARIATION |
Iowa | Withdrawal Charges See Fee Tables and section 6 | The withdrawal charge is 8.25%, 8%, 7%, 6%, 5%, 4% and 0% for time periods referenced in the Fee Tables and section 6. |
Massachusetts | Waiver of Withdrawal Charge Benefit See section 7 | The waiver of withdrawal charge benefit is not available. |
Mississippi | Withdrawal Charges See Fee Tables and section 6 | The withdrawal charge is 8.5%, 7.5%, 6.5%, 5.5%, 5%, 4% and 0% for time periods referenced in the Fee Tables and section 6. |
Purchase Requirements See section 3 | • For Contracts issued before November 18, 2019: We do not accept additional Purchase Payments on or after the first Contract Anniversary. • For Contracts issued on or after November 18, 2019: | |
Montana | Access to Your Money See section 7 | If you take a partial withdrawal that reduces the Contract Value below $2,000, we contact you by phone and give you the option of modifying your withdrawal request. If we cannot reach you, we process your request as a full withdrawal. |
New Hampshire | Waiver of Withdrawal Charge Benefit See section 7 | The definition of nursing home is an institution operated in accordance with state law. |
New Jersey | Joint Owner See section 2 | We allow civil union partners to be Joint Owners. |
Eligible Person(s) and Covered Person(s) See section 2 | We allow civil union partners to be joint Eligible Persons and joint Covered Persons. If at any time joint Eligible Persons or joint Covered Persons are no longer civil union partners you must send us written notice. If we receive notice on or before the Income Benefit Date, joint Income Payments will not be available to you. If we receive notice after the Income Benefit Date, we will remove one former civil union partner from the Contract as a Covered Person and also as an Owner, Joint Owner, Annuitant and/or Beneficiary. | |
Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 | We cannot restrict assignments or changes of ownership. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
Purchase Requirements See section 3 | The maximum total Purchase Payments that we can accept is $1 million. We | |
Ohio | Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 | We cannot restrict assignments or changes of ownership. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
Pennsylvania | Withdrawal Charges See Fee Tables and section 6 | The withdrawal charge is 8.25%, 8%, 7%, 6%, 5%, 4% and 0% for time periods referenced in the Fee Tables and section 6. |
ISSUE STATE | FEATURE AND BENEFITS | VARIATION |
Pennsylvania (continued) | Waiver of Withdrawal Charge Benefit See section 7 | The waiver is not available if on the Issue Date, an Owner was confined to a nursing home or was already diagnosed with a terminal illness. Also, the nursing home confinement requirement is a total of 90 days within a six month period. These 90 days do not need to be consecutive. |
Texas | Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 | We cannot restrict assignments or changes of ownership. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
Purchase Requirements See section 3 | • For Contracts issued • For Contracts issued on or after November 18, 2019 : We do not accept additional Purchase Payments on or after the tenth Contract Anniversary. | |
Access to Your Money See section 7 | We only treat a partial withdrawal that reduces the Contract Value below $2,000 as a full withdrawal if you have not made an additional Purchase Payment in the past two calendar years. | |
Our Unregistered Separate Account See section | For Contracts issued before May 1, 2020 : We hold all assets that you allocate to the Index | |
Utah | Purchase Requirements See section 3 | • For Contracts issued before November 18, 2019 : We do not accept additional Purchase Payments on or after the first Contract Anniversary. • For Contracts issued on or after November 18, 2019 : We do not accept additional Purchase Payments on or after the tenth Contract Anniversary. |
Wisconsin | Assignments, Changes of Ownership and Other Transfers of Contract Rights See section 2 | We cannot restrict assignments or changes of ownership. • We do not change the Determining Life (Lives) following an assignment or ownership change. If you assign the Contract and the Determining Life (Lives) are no longer an Owner (or Annuitant if the Owner is a non-individual) the Traditional Death Benefit or Maximum Anniversary Value Death Benefit may not be available and on the Owner’s death the Beneficiary(s) will only receive the Contract Value. |
Investment Objectives | Variable Option and Adviser/Subadviser | Current Expenses | Average Annual Total Returns (as of December 31, 2021) | Variable Investment Option and Adviser/Subadviser | Current Expenses | Average Annual Total Returns (as of December 31, 2021) | ||||
1 Year | 5 Years | 10 Years | 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 | 0.64% | 0.00% | 0.53% | 0.27% | AZL ® Government Money Market Fund (1) Adviser: Allianz Investment Management LLC Subadviser: BlackRock Advisors, LLC | 0.64% | 0.00% | 0.53% | 0.27% |
Long-term capital appreciation with preservation of capital as an important consideration | AZL ® MVP Balanced Index Strategy Fund (2) Adviser: Allianz Investment Management LLC | 0.71% | 10.02% | 7.73% | 7.20% | |||||
Long-term capital appreciation | AZL ® MVP Growth Index Strategy Fund (2) Adviser: Allianz Investment Management LLC | 0.68% | 16.40% | 9.77% | 9.23% |
(1) | The AZL ® Government Money Market Fund’s annual expenses reflect a temporary fee reduction. Please see the AZL ® Government Money Market Fund’s prospectus for information regarding the expense reimbursement or fee waiver arrangement. |
Part I |
Year ended December 31, | ||||||||||||||||||||||||||||||||
Selected income data | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 14,291 | 10,542 | 13,029 | 12,193 | 10,231 | ||||||||||||||||||||||||||
Net investment income | 4,866 | 4,864 | 4,839 | 4,593 | 4,504 | |||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 639 | (45) | 329 | 245 | 612 | |||||||||||||||||||||||||||
Fees from separate accounts | 574 | 567 | 613 | 676 | 719 | |||||||||||||||||||||||||||
Other income | (32) | 694 | (13) | (3) | 150 | |||||||||||||||||||||||||||
Total income | 20,338 | 16,622 | 18,797 | 17,704 | 16,216 | |||||||||||||||||||||||||||
Policyholder benefits and surrenders | 10,876 | 10,343 | 10,368 | 9,436 | 8,649 | |||||||||||||||||||||||||||
Change in aggregate reserves | 4,316 | 2,465 | 1,034 | 7,299 | 10,628 | |||||||||||||||||||||||||||
General and administrative and commission | 2,195 | 1,739 | 1,878 | 1,770 | 1,616 | |||||||||||||||||||||||||||
Net transfers to separate accounts | 2,424 | 1,460 | 5,254 | (2,009) | (1,851) | |||||||||||||||||||||||||||
Total benefits and other expenses | 19,811 | 16,007 | 18,534 | 16,496 | 19,042 | |||||||||||||||||||||||||||
Income tax expense (benefit) | 1,091 | 18 | 773 | (51) | 24 | |||||||||||||||||||||||||||
Net realized capital gain (loss) | 1,856 | 142 | 1,053 | (490) | 3,655 | |||||||||||||||||||||||||||
Net income (loss) | $ | 1,292 | 739 | 543 | 769 | 805 | ||||||||||||||||||||||||||
Capital and Surplus: | ||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | (142) | (61) | 719 | (230) | (78) | ||||||||||||||||||||||||||
Dividends to parent | (900) | (750) | (325) | — | (780) | |||||||||||||||||||||||||||
Other change in capital & surplus | 2,794 | (220) | 441 | 26 | (101) | |||||||||||||||||||||||||||
Net change in capital & surplus | $ | 3,044 | (292) | 1,378 | 565 | (154) | ||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. |
As of December 31, | ||||||||||||||||||||||||||||||||
Selected balance sheet data | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Total cash and invested assets | $ | 122,829 | 125,229 | 121,870 | 117,203 | 109,328 | ||||||||||||||||||||||||||
Investment income due and accrued | 947 | 1,040 | 1,031 | 1,047 | 1,004 | |||||||||||||||||||||||||||
Other admitted assets | 1,480 | 1,218 | 945 | 951 | 982 | |||||||||||||||||||||||||||
Separate account assets | 48,279 | 45,901 | 34,638 | 22,835 | 26,755 | |||||||||||||||||||||||||||
Total admitted assets | 173,535 | 173,388 | 158,484 | 142,036 | 138,069 | |||||||||||||||||||||||||||
Total policyholder liabilities | 103,933 | 109,353 | 107,098 | 107,118 | 100,433 | |||||||||||||||||||||||||||
Other liabilities | 10,618 | 10,473 | 8,794 | 5,507 | 4,869 | |||||||||||||||||||||||||||
Separate account liabilities | 48,279 | 45,901 | 34,638 | 22,835 | 26,755 | |||||||||||||||||||||||||||
Total liabilities | 162,830 | 165,727 | 150,530 | 135,460 | 132,057 | |||||||||||||||||||||||||||
Total capital and surplus | 10,705 | 7,661 | 7,954 | 6,576 | 6,011 |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 - 2020 | 2020 - 2019 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 14,291 | 10,542 | 13,029 | 3,749 | 35.6 | % | $ | (2,487) | (19.1) | % | ||||||||||||||||||||||||||||||
Net investment income | 4,866 | 4,864 | 4,839 | 2 | — | 25 | 0.5 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 639 | (45) | 329 | 684 | (1,520.0) | (374) | (113.7) | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 574 | 567 | 613 | 7 | 1.2 | (46) | (7.5) | ||||||||||||||||||||||||||||||||||
Other income | (32) | 694 | (13) | (726) | (104.6) | 707 | 5,438.5 | ||||||||||||||||||||||||||||||||||
Total income | 20,338 | 16,622 | 18,797 | 3,716 | 22.4 | % | (2,175) | (11.6) | % | ||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 10,876 | 10,343 | 10,368 | 533 | 5.2 | % | (25) | (0.2) | % | ||||||||||||||||||||||||||||||||
Change in aggregate reserves | 4,316 | 2,465 | 1,034 | 1,851 | 75.1 | 1,431 | 138.4 | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 2,195 | 1,739 | 1,878 | 456 | 26.2 | (139) | (7.4) | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | 2,424 | 1,460 | 5,254 | 964 | 66.0 | (3,794) | (72.2) | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 19,811 | 16,007 | 18,534 | 3,804 | 23.8 | (2,527) | (13.6) | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | 527 | 615 | 263 | (88) | (14.3) | 352 | 133.8 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 1,091 | 18 | 773 | 1,073 | 5,961.1 | (755) | (97.7) | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | 1,856 | 142 | 1,053 | 1,714 | 1,207.0 | (911) | (86.5) | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 1,292 | 739 | 543 | 553 | 74.8 | % | $ | 196 | 36.1 | % | ||||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | (142) | (61) | 719 | (81) | (132.8) | % | $ | (780) | (108.5) | % | ||||||||||||||||||||||||||||||
Dividends to parent | (900) | (750) | (325) | (150) | (20.0) | (425) | (130.8) | ||||||||||||||||||||||||||||||||||
Other change in capital & surplus | 2,794 | (220) | 441 | 3,014 | 1,370.0 | (661) | (149.9) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 3,044 | (292) | 1,378 | 3,336 | 1,142.5 | % | $ | (1,670) | (121.2) | % | ||||||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. | |||||||||||||||||||||||||||||||||||||||||
**Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 - 2020 | 2020 - 2019 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 14,291 | 10,542 | 13,029 | 3,749 | 35.6 | % | $ | (2,487) | (19.1) | % | ||||||||||||||||||||||||||||||
Net investment income | 4,866 | 4,864 | 4,839 | 2 | — | 25 | 0.5 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 639 | (45) | 329 | 684 | (1,520.0) | (374) | (113.7) | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 574 | 567 | 613 | 7 | 1.2 | (46) | (7.5) | ||||||||||||||||||||||||||||||||||
Other income | (32) | 694 | (13) | (726) | (104.6) | 707 | 5,438.5 | ||||||||||||||||||||||||||||||||||
Total income | 20,338 | 16,622 | 18,797 | 3,716 | 22.4 | % | (2,175) | (11.6) | % | ||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 10,876 | 10,343 | 10,368 | 533 | 5.2 | % | (25) | (0.2) | % | ||||||||||||||||||||||||||||||||
Change in aggregate reserves | 4,316 | 2,465 | 1,034 | 1,851 | 75.1 | 1,431 | 138.4 | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 2,195 | 1,739 | 1,878 | 456 | 26.2 | (139) | (7.4) | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | 2,424 | 1,460 | 5,254 | 964 | 66.0 | (3,794) | (72.2) | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 19,811 | 16,007 | 18,534 | 3,804 | 23.8 | (2,527) | (13.6) | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | 527 | 615 | 263 | (88) | (14.3) | 352 | 133.8 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 1,091 | 18 | 773 | 1,073 | 5,961.1 | (755) | (97.7) | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | 1,856 | 142 | 1,053 | 1,714 | 1,207.0 | (911) | (86.5) | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 1,292 | 739 | 543 | 553 | 74.8 | % | $ | 196 | 36.1 | % | ||||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | (142) | (61) | 719 | (81) | (132.8) | % | $ | (780) | (108.5) | % | ||||||||||||||||||||||||||||||
Dividends to parent | (900) | (750) | (325) | (150) | (20.0) | (425) | (130.8) | ||||||||||||||||||||||||||||||||||
Other change in capital & surplus | 2,794 | (220) | 441 | 3,014 | 1,370.0 | (661) | (149.9) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 3,044 | (292) | 1,378 | 3,336 | 1,142.5 | % | $ | (1,670) | (121.2) | % | ||||||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. | |||||||||||||||||||||||||||||||||||||||||
**Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 - 2020 | 2020 - 2019 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 12,766 | 9,268 | 11,969 | $ | 3,498 | 37.7 | % | $ | (2,701) | (22.6) | % | |||||||||||||||||||||||||||||
Net investment income | 4,467 | 4,531 | 4,551 | (64) | (1.4) | (20) | (0.4) | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 656 | (54) | 321 | 710 | 1,314.8 | (375) | (116.8) | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 574 | 567 | 613 | 7 | 1.2 | (46) | (7.5) | ||||||||||||||||||||||||||||||||||
Other income | (37) | 691 | (17) | (728) | (105.4) | 708 | 4,164.7 | ||||||||||||||||||||||||||||||||||
Total income | 18,426 | 15,003 | 17,437 | 3,423 | 22.8 | (2,434) | (14.0) | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 10,584 | 10,073 | 10,078 | 511 | 5.1 | (5) | — | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 2,789 | 1,474 | 289 | 1,315 | 89.2 | 1,185 | 410.0 | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 1,756 | 1,369 | 1,591 | 387 | 28.3 | (222) | (14.0) | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | 2,426 | 1,462 | 5,258 | 964 | 65.9 | (3,796) | (72.2) | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 17,555 | 14,378 | 17,216 | 3,177 | 22.1 | (2,838) | (16.5) | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | 871 | 625 | 221 | 246 | 39.4 | 404 | 182.8 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 1,802 | 18 | 649 | 1,784 | 9,911.1 | (631) | (97.2) | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | 1,519 | 67 | 922 | 1,452 | 2,167.2 | (855) | (92.7) | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 588 | 674 | 494 | $ | (86) | (12.8) | % | $ | 180 | 36.4 | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | (125) | (79) | 588 | $ | (46) | (58.2) | % | $ | (667) | (113.4) | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | 2,792 | (220) | 439 | 3,012 | 1,369.1 | (659) | (150.1) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 3,255 | 375 | 1,521 | $ | 2,880 | 768.0 | % | $ | (1,146) | (75.3) | % | |||||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. | |||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 - 2020 | 2020 - 2019 | |||||||||||||||||||||||||||||||||||||
Individual Annuities | |||||||||||||||||||||||||||||||||||||||||
Deposits | $ | 13,226 | 9,474 | 12,135 | 3,752 | 39.6 | % | (2,661) | (21.9) | % | |||||||||||||||||||||||||||||||
In-force | 141,131 | 131,228 | 126,936 | 9,903 | 7.5 | % | 4,292 | 3.4 | % |
Year ended December 31, | % change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2020 - 2019 | 2019 - 2018 | |||||||||||||||||||||||||
Stock Index | |||||||||||||||||||||||||||||
S&P 500 | 26.89% | 16.26% | 28.88% | 10.63% | (12.62)% | ||||||||||||||||||||||||
NASDAQ 100 | 26.63% | 47.58% | 37.96% | (20.95)% | 9.62% | ||||||||||||||||||||||||
BUDBI | 6.35% | 9.08% | 13.23% | (2.73)% | (4.15)% | ||||||||||||||||||||||||
BUDBI II | 4.60% | 6.15% | 14.05% | (1.55)% | (7.90)% |
As of December 31, | Basis point (bps) change | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2020- 2019 | 2019 - 2018 | |||||||||||||||||||||||||
Interest Rates | |||||||||||||||||||||||||||||
Swap rate - 10 year | 1.58% | 0.93% | 1.90% | 65bps | (97bps) | ||||||||||||||||||||||||
Swap rate - 20 year | 1.76% | 1.32% | 2.07% | 44bps | (75bps) |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 - 2020 | 2020 - 2019 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations | $ | 1,363 | 1,115 | 906 | $ | 248 | 22.2 | % | $ | 209 | 23.1 | % | |||||||||||||||||||||||||||||
Net investment income | 259 | 210 | 177 | 49 | 23.3 | 33 | 18.6 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | (23) | 3 | 2 | (26) | (866.7) | 1 | 50.0 | ||||||||||||||||||||||||||||||||||
Other income | 3 | 2 | 3 | 1 | 50.0 | (1) | (33.3) | ||||||||||||||||||||||||||||||||||
Total income | 1,602 | 1,330 | 1,088 | 272 | 20.5 | 242 | 22.2 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 194 | 173 | 199 | 21 | 12.1 | (26) | (13.1) | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 1,216 | 824 | 611 | 392 | 47.6 | 213 | 34.9 | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 386 | 343 | 258 | 43 | 12.5 | 85 | 32.9 | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 1,796 | 1,340 | 1,068 | 456 | 34.0 | 272 | 25.5 | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | (194) | (10) | 20 | (184) | (1,840.0) | (30) | (150.0) | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (401) | — | 59 | (401) | — | (59) | — | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | 337 | 77 | 131 | 260 | 337.7 | (54) | (41.2) | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 544 | 67 | 92 | $ | 477 | 711.9 | % | $ | (25) | (27.2) | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | (9) | 23 | 130 | $ | (32) | (139.1) | % | $ | (107) | (82.3) | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | 1 | (4) | 4 | 5 | 125.0 | (8) | (200.0) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 536 | 86 | 226 | $ | 450 | 523.3 | % | $ | (140) | (61.9) | % | |||||||||||||||||||||||||||||
*Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 - 2020 | 2020 - 2019 | |||||||||||||||||||||||||||||||||||||
Life | |||||||||||||||||||||||||||||||||||||||||
First year and renewal premiums | $ | 1,426 | 1,170 | 960 | $ | 256 | 21.9 | % | $ | 210 | 21.9 | % | |||||||||||||||||||||||||||||
In-force | 62,372 | 50,485 | 42,700 | 11,887 | 23.5 | 7,785 | 18.2 |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 - 2020 | 2020 - 2019 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations | $ | 162 | 158 | 154 | $ | 4 | 2.5 | % | $ | 4 | 2.6 | % | |||||||||||||||||||||||||||||
Net investment income | 140 | 123 | 110 | 17 | 13.8 | 13 | 11.8 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 6 | 6 | 7 | — | — | (1) | (14.3) | ||||||||||||||||||||||||||||||||||
Other income | 2 | 2 | 2 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total income | 310 | 289 | 273 | 21 | 7.3 | 16 | 5.9 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 98 | 97 | 91 | 1 | 1.0 | 6 | 6.6 | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 311 | 167 | 134 | 144 | 86.2 | 33 | 24.6 | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 52 | 27 | 29 | 25 | 92.6 | (2) | (6.9) | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | (2) | (2) | (3) | — | — | 1 | 33.3 | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 459 | 289 | 251 | 170 | 58.8 | 38 | 15.1 | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | (149) | — | 22 | (149) | NM* | (22) | (100.0) | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (310) | — | 65 | (310) | NM* | (65) | (100.0) | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | — | (2) | — | 2 | 100.0 | % | (2) | NM* | |||||||||||||||||||||||||||||||||
Net income (loss) | $ | 161 | (2) | (43) | $ | 163 | 8,150.0 | % | $ | 41 | 95.3 | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | (8) | (5) | 1 | $ | (3) | (60.0) | % | $ | (6) | (600.0) | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | 1 | 2 | (2) | (1) | (50.0) | 4 | 200.0 | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 154 | (5) | (44) | $ | 159 | 3,180.0 | % | $ | 39 | 88.6 | % | |||||||||||||||||||||||||||||
*Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 - 2020 | 2020 - 2019 | |||||||||||||||||||||||||||||||||||||
Legacy Products | |||||||||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 258 | 257 | 254 | $ | 1 | 0.4 | % | $ | 3 | 1.2 | % | |||||||||||||||||||||||||||||
In-force | 2,611 | 2,796 | 2,993 | (185) | (6.6) | (197) | (6.6) |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 - 2020 | 2020 - 2019 | |||||||||||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Dividends to parent | $ | (900) | (750) | (325) | $ | (150) | 120.0 | % | $ | (425) | (230.8) | % |
2021 | 2020 | ||||||||||||||||||||||
Carrying value | % of total | Carrying value | % of total | ||||||||||||||||||||
Bonds | $ | 93,817 | 76.4 | % | $ | 99,088 | 79.1 | % | |||||||||||||||
Stocks | 303 | 0.2 | 274 | 0.2 | |||||||||||||||||||
Investment in subsidiaries | 1,477 | 1.2 | 1,329 | 1.1 | |||||||||||||||||||
Mortgage loans on real estate | 17,154 | 14.0 | 15,634 | 12.5 | |||||||||||||||||||
Real estate | 80 | 0.1 | 69 | 0.1 | |||||||||||||||||||
Cash and cash equivalents | 3,215 | 2.6 | 910 | 0.7 | |||||||||||||||||||
Policy loans | 267 | 0.2 | 255 | 0.2 | |||||||||||||||||||
Derivative assets | 2,682 | 2.2 | 4,114 | 3.3 | |||||||||||||||||||
Other invested assets | 3,834 | 3.1 | 3,556 | 2.8 | |||||||||||||||||||
Total cash and invested assets | $ | 122,829 | 100.0 | % | $ | 125,229 | 100.0 | % |
2021 | |||||||||||||||||||||||
NAIC Classes | Fair Value | % of Total | Amortized Cost | % of Total | |||||||||||||||||||
1 | $ | 57,937 | 55.5 | % | $ | 52,287 | 55.7 | % | |||||||||||||||
2 | 43,792 | 41.9 | 39,053 | 41.7 | |||||||||||||||||||
Investment grade | 101,729 | 97.4 | 91,340 | 97.4 | |||||||||||||||||||
3 | 2,470 | 2.4 | 2,242 | 2.4 | |||||||||||||||||||
4 | 187 | 0.2 | 208 | 0.2 | |||||||||||||||||||
5 | 1 | — | 1 | — | |||||||||||||||||||
6 | 26 | — | 26 | — | |||||||||||||||||||
Below investment grade | 2,684 | 2.6 | 2,477 | 2.6 | |||||||||||||||||||
Total | $ | 104,413 | 100.0 | % | $ | 93,817 | 100.0 | % |
2020 | |||||||||||||||||||||||
NAIC Classes | Fair Value | % of Total | Amortized Cost | % of Total | |||||||||||||||||||
1 | 64,466 | 55.7 | % | $ | 55,379 | 55.9 | % | ||||||||||||||||
2 | 47,679 | 41.2 | $ | 40,472 | 40.9 | ||||||||||||||||||
Investment grade | 112,145 | 96.9 | $ | 95,851 | 96.8 | ||||||||||||||||||
3 | 3,323 | 2.9 | $ | 2,982 | 3.0 | ||||||||||||||||||
4 | 221 | 0.2 | $ | 232 | 0.2 | ||||||||||||||||||
5 | 18 | — | $ | 20 | — | ||||||||||||||||||
6 | 3 | — | $ | 3 | — | ||||||||||||||||||
Below investment grade | 3,565 | 3.1 | $ | 3,237 | 3.2 | ||||||||||||||||||
Total | $ | 115,710 | 100.0 | % | $ | 99,088 | 100.0 | % |
2021 | ||||||||||||||||||||||||||
NAIC Classes | % of total CMBS | Vintage | ||||||||||||||||||||||||
1 | $ | 9,725 | 100.0 | % | 2021 | $ | 597 | 6.1 | % | |||||||||||||||||
2 | 1 | — | 2020 | 365 | 3.8 | |||||||||||||||||||||
3 | 3 | — | 2019 | 1,426 | 14.7 | |||||||||||||||||||||
4 | — | — | 2018 | 1,405 | 14.4 | |||||||||||||||||||||
5 | — | — | 2017 and prior | 5,936 | 61.0 | |||||||||||||||||||||
6 | — | — | $ | 9,729 | 100.0 | % | ||||||||||||||||||||
$ | 9,729 | 100.0 | % |
2020 | ||||||||||||||||||||||||||
NAIC Classes | % of total CMBS | Vintage | ||||||||||||||||||||||||
1 | $ | 11,234 | 99.5 | % | 2020 | $ | 335 | 3.0 | % | |||||||||||||||||
2 | 1 | — | 2019 | 1,607 | 14.2 | |||||||||||||||||||||
3 | 47 | 0.4 | 2018 | 1,845 | 16.3 | |||||||||||||||||||||
4 | 15 | 0.1 | 2017 | 1,627 | 14.4 | |||||||||||||||||||||
5 | — | — | 2016 and prior | 5,883 | 52.1 | |||||||||||||||||||||
6 | — | — | $ | 11,297 | 100.0 | % | ||||||||||||||||||||
$ | 11,297 | 100.0 | % |
2021 | ||||||||||||||||||||||||||
NAIC Classes | % of total other ABS | Vintage | ||||||||||||||||||||||||
1 | $ | 4,823 | 74.0 | % | 2021 | $ | 3,600 | 55.3 | % | |||||||||||||||||
2 | 1,470 | 22.6 | 2020 | 610 | 9.4 | |||||||||||||||||||||
3 | 74 | 1.1 | 2019 | 583 | 8.8 | |||||||||||||||||||||
4 | 147 | 2.3 | 2018 | 903 | 13.9 | |||||||||||||||||||||
5 | — | — | 2017 and prior | 818 | 12.6 | |||||||||||||||||||||
6 | — | — | $ | 6,514 | 100.0 | % | ||||||||||||||||||||
$ | 6,514 | 100.0 | % |
2020 | ||||||||||||||||||||||||||
NAIC Classes | % of total other ABS | Vintage | ||||||||||||||||||||||||
1 | $ | 2,883 | 70.6 | % | 2020 | $ | 758 | 18.6 | % | |||||||||||||||||
2 | 976 | 23.9 | 2019 | 1,264 | 30.9 | |||||||||||||||||||||
3 | 74 | 1.8 | 2018 | 1,094 | 26.8 | |||||||||||||||||||||
4 | 134 | 3.3 | 2017 | 302 | 7.4 | |||||||||||||||||||||
5 | 18 | 0.4 | 2016 and prior | 667 | 16.3 | |||||||||||||||||||||
6 | — | — | $ | 4,085 | 100.0 | % | ||||||||||||||||||||
$ | 4,085 | 100.0 | % |
2021 | ||||||||||||||||||||||||||
NAIC Classes | % of total NA RMBS | Vintage | ||||||||||||||||||||||||
1 | $ | 206 | 96.3 | % | 2021 | $ | — | — | % | |||||||||||||||||
2 | — | — | 2020 | — | — | |||||||||||||||||||||
3 | 2 | 0.9 | 2019 | — | — | |||||||||||||||||||||
4 | 3 | 1.4 | 2018 | — | — | |||||||||||||||||||||
5 | — | — | 2017 and prior | 214 | 100.0 | |||||||||||||||||||||
6 | 3 | 1.4 | $ | 214 | 100.0 | % | ||||||||||||||||||||
$ | 214 | 100.0 | % |
2020 | ||||||||||||||||||||||||||
NAIC Classes | % of total NA RMBS | Vintage | ||||||||||||||||||||||||
1 | $ | 222 | 95.3 | % | 2020 | $ | — | — | % | |||||||||||||||||
2 | $ | — | — | 2019 | $ | — | — | |||||||||||||||||||
3 | $ | 4 | 1.7 | 2018 | $ | — | — | |||||||||||||||||||
4 | $ | 4 | 1.7 | 2017 | $ | — | — | |||||||||||||||||||
5 | $ | — | — | 2016 and prior | $ | 233 | 100.0 | |||||||||||||||||||
6 | $ | 3 | 1.3 | $ | 233 | 100.0 | % | |||||||||||||||||||
$ | 233 | 100.0 | % |
2021 | |||||||||||||||||||||||
Investment Grade | % of Total | Below Investment Grade | % of Total | ||||||||||||||||||||
Twelve months or less below carrying value | $ | 239 | 66.1 | % | $ | 21 | 5.9 | % | |||||||||||||||
More than twelve months below carrying value | 79 | 21.9 | 22 | 6.1 | |||||||||||||||||||
Total | $ | 318 | 88.0 | % | $ | 43 | 12.0 | % |
2020 | |||||||||||||||||||||||
Investment Grade | % of Total | Below Investment Grade | % of Total | ||||||||||||||||||||
Twelve months or less below carrying value | $ | 66 | 58.8 | % | $ | 31 | 27.6 | % | |||||||||||||||
More than twelve months below carrying value | 10 | 9.3 | 5 | 4.3 | |||||||||||||||||||
Total | $ | 76 | 68.1 | % | $ | 36 | 31.9 | % |
2021 | 2020 | ||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||
Partnerships | $ | 6 | 2 | $ | 1 | 1 | |||||||||||||||||
Commercial mortgage loans | 8 | 1 | 34 | 1 | |||||||||||||||||||
Corporate securities | 13 | 8 | 254 | 83 | |||||||||||||||||||
Total | $ | 27 | 11 | $ | 289 | 85 |
2021 | 2020 | ||||||||||||||||||||||
Gross Carry Value | % of Total | Gross Carry Value | % of Total | ||||||||||||||||||||
Commerical Mortgage Loans by region | |||||||||||||||||||||||
East North Central | $ | 1,442 | 9.2 | % | $ | 1,244 | 8.4 | % | |||||||||||||||
East South Central | 399 | 2.5 | 375 | 2.5 | |||||||||||||||||||
Middle Atlantic | 1,352 | 8.6 | 1,249 | 8.4 | |||||||||||||||||||
Mountain | 1,539 | 9.8 | 1,506 | 10.1 | |||||||||||||||||||
New England | 678 | 4.3 | 652 | 4.4 | |||||||||||||||||||
Pacific | 4,493 | 28.5 | 4,258 | 28.6 | |||||||||||||||||||
South Atlantic | 3,520 | 22.4 | 3,599 | 24.2 | |||||||||||||||||||
West North Central | 887 | 5.6 | 674 | 4.5 | |||||||||||||||||||
West South Central | 1,438 | 9.1 | 1,314 | 8.8 | |||||||||||||||||||
Total commercial mortgage loans | $ | 15,748 | 100.0 | % | $ | 14,871 | 100.0 | % |
2021 | 2020 | ||||||||||||||||||||||
Gross Carry Value | % of Total | Gross Carry Value | % of Total | ||||||||||||||||||||
Residential Mortgage Loans by region | |||||||||||||||||||||||
East North Central | $ | 80 | 5.7 | % | $ | 21 | 2.8 | % | |||||||||||||||
East South Central | 27 | 1.9 | 8 | 1.0 | |||||||||||||||||||
Middle Atlantic | 233 | 16.6 | 91 | 11.9 | |||||||||||||||||||
Mountain | 176 | 12.5 | 76 | 10.0 | |||||||||||||||||||
New England | 68 | 4.8 | 15 | 2.0 | |||||||||||||||||||
Pacific | 543 | 38.6 | 394 | 51.6 | |||||||||||||||||||
South Atlantic | 211 | 15.0 | 125 | 16.4 | |||||||||||||||||||
West North Central | 12 | 0.8 | 9 | 1.2 | |||||||||||||||||||
West South Central | 55 | 3.9 | 24 | 3.1 | |||||||||||||||||||
Total residential mortgage loans | $ | 1,406 | 100.0 | % | $ | 763 | 100.0 | % |
2021 | 2020 | ||||||||||||||||||||||
Gross Carry Value | % of Total | Gross Carry Value | % of Total | ||||||||||||||||||||
Mortgage loans by property type | |||||||||||||||||||||||
Industrial | $ | 2,985 | 19.0 | % | $ | 3,182 | 21.4 | % | |||||||||||||||
Retail | 2,549 | 16.2 | 2,765 | 18.6 | |||||||||||||||||||
Office | 4,927 | 31.3 | 4,771 | 32.1 | |||||||||||||||||||
Apartments | 5,287 | 33.5 | 4,153 | 27.9 | |||||||||||||||||||
Total | $ | 15,748 | 100.0 | % | $ | 14,871 | 100.0 | % |
2021 | 2020 | 2019 | ||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (4,241) | 3,701 | 1,511 | ||||||||||||||||
Net cash provided by (used in) investing activities | 5,538 | (3,240) | 955 | |||||||||||||||||
Net cash provided by (used in) financing and miscellaneous activities | 1,008 | (1,419) | (1,524) | |||||||||||||||||
Net change in cash, cash equivalents, and short-term investments | $ | 2,305 | (958) | 942 |
1 of 67 |
2 of 67 |
Admitted Assets | 2021 | 2020 | ||||||||||||
Cash and invested assets: | ||||||||||||||
Bonds | $ | 93,817 | 99,088 | |||||||||||
Stocks | 303 | 274 | ||||||||||||
Investment in subsidiaries | 1,477 | 1,329 | ||||||||||||
Mortgage loans on real estate | 17,154 | 15,634 | ||||||||||||
Real estate | 80 | 69 | ||||||||||||
Cash, cash equivalents and short-term investments | 3,215 | 910 | ||||||||||||
Policy loans | 267 | 255 | ||||||||||||
Derivative assets | 2,682 | 4,114 | ||||||||||||
Other invested assets | 3,834 | 3,556 | ||||||||||||
Total cash and invested assets | 122,829 | 125,229 | ||||||||||||
Investment income due and accrued | 947 | 1,040 | ||||||||||||
Current federal and foreign income tax recoverable | — | 200 | ||||||||||||
Deferred tax asset, net | 487 | 273 | ||||||||||||
Other assets | 993 | 745 | ||||||||||||
Admitted assets, exclusive of separate account assets | 125,256 | 127,487 | ||||||||||||
Separate account assets | 48,279 | 45,901 | ||||||||||||
Total admitted assets | $ | 173,535 | 173,388 |
3 of 67 |
Liabilities and Capital and Surplus | 2021 | 2020 | ||||||||||||
Policyholder liabilities: | ||||||||||||||
Life policies and annuity contracts | $ | 96,980 | 102,549 | |||||||||||
Accident and health policies | 2,227 | 1,912 | ||||||||||||
Deposit-type contracts | 4,577 | 4,749 | ||||||||||||
Life policy and contract claims | 8 | 8 | ||||||||||||
Accident and health policy and contract claims | 19 | 18 | ||||||||||||
Other policyholder funds | 122 | 117 | ||||||||||||
Total policyholder liabilities | 103,933 | 109,353 | ||||||||||||
Interest maintenance reserve | 267 | 18 | ||||||||||||
General expenses due and accrued | 245 | 157 | ||||||||||||
Due from separate accounts | (635) | (294) | ||||||||||||
Current income taxes payable | 482 | 35 | ||||||||||||
Borrowed money | 2,001 | 1,501 | ||||||||||||
Asset valuation reserve | 1,148 | 983 | ||||||||||||
Derivative liabilities | 2,023 | 3,262 | ||||||||||||
Other liabilities | 5,087 | 4,811 | ||||||||||||
Liabilities, exclusive of separate account liabilities | 114,551 | 119,826 | ||||||||||||
Separate account liabilities | 48,279 | 45,901 | ||||||||||||
Total liabilities | 162,830 | 165,727 | ||||||||||||
Capital and surplus: | ||||||||||||||
Class A, Series A preferred stock, $1 par value. Authorized, issued, and outstanding, 8,909,195 shares; liquidation preference of $4 and $3 at December 31, 2021 and 2020, 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 $5 and $4 at December 31, 2021 and 2020, respectively | 10 | 10 | ||||||||||||
Common stock, $1 par value. Authorized, 40,000,000 shares; issued and outstanding, 20,000,001 shares at December 31, 2021 and 2020, respectively | 20 | 20 | ||||||||||||
Additional paid-in capital | 3,676 | 3,676 | ||||||||||||
Special surplus funds | (1,437) | (1,844) | ||||||||||||
Unassigned surplus | 8,427 | 5,790 | ||||||||||||
Total capital and surplus | 10,705 | 7,661 | ||||||||||||
Total liabilities and capital and surplus | $ | 173,535 | 173,388 | |||||||||||
See accompanying notes to statutory financial statements. |
4 of 67 |
2021 | 2020 | 2019 | ||||||||||||||||||
Income: | ||||||||||||||||||||
Premiums and annuity considerations | $ | 14,125 | 10,346 | 12,805 | ||||||||||||||||
Consideration for supplementary contracts | 166 | 196 | 224 | |||||||||||||||||
Net investment income | 4,866 | 4,864 | 4,839 | |||||||||||||||||
Commissions and expense allowances on reinsurance ceded | 1,093 | (38) | 338 | |||||||||||||||||
Reserve adjustments related to reinsurance ceded | (454) | (7) | (9) | |||||||||||||||||
Fees from separate accounts | 574 | 567 | 613 | |||||||||||||||||
Other | (32) | 694 | (13) | |||||||||||||||||
Total income | 20,338 | 16,622 | 18,797 | |||||||||||||||||
Benefits and other expenses: | ||||||||||||||||||||
Policyholder benefits | 2,076 | 1,926 | 1,809 | |||||||||||||||||
Surrenders | 8,800 | 8,417 | 8,559 | |||||||||||||||||
Change in aggregate reserves and deposit funds | 4,316 | 2,465 | 1,034 | |||||||||||||||||
Commissions and other agent compensation | 1,480 | 1,139 | 1,284 | |||||||||||||||||
General and administrative expenses | 715 | 600 | 594 | |||||||||||||||||
Net transfers to separate accounts | 2,424 | 1,460 | 5,254 | |||||||||||||||||
Total benefits and other expenses | 19,811 | 16,007 | 18,534 | |||||||||||||||||
Income from operations before federal income taxes and net realized capital gain | 527 | 615 | 263 | |||||||||||||||||
Income tax expense | 1,091 | 18 | 773 | |||||||||||||||||
Net (loss) income from operations before net realized capital gain | (564) | 597 | (510) | |||||||||||||||||
Net realized capital gain, net of taxes and interest maintenance reserve | 1,856 | 142 | 1,053 | |||||||||||||||||
Net income | $ | 1,292 | 739 | 543 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
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2021 | 2020 | 2019 | ||||||||||||||||||
Capital and surplus at beginning of year | $ | 7,661 | 7,954 | 6,576 | ||||||||||||||||
Change due to correction of accounting error (Note 3) | 40 | — | — | |||||||||||||||||
Change in reserve on account of change in valuation basis (Note 3) | — | (1) | — | |||||||||||||||||
Adjusted balance at beginning of year | 7,701 | 7,953 | 6,576 | |||||||||||||||||
Net income | 1,292 | 739 | 543 | |||||||||||||||||
Change in unrealized capital (loss) gain | (142) | (61) | 719 | |||||||||||||||||
Change in net deferred income tax | 215 | 42 | 330 | |||||||||||||||||
Change in asset valuation reserve | (165) | (88) | (131) | |||||||||||||||||
Dividends paid to parent | (900) | (750) | (325) | |||||||||||||||||
Change in unamortized gain on reinsurance transactions | 2,737 | (162) | 248 | |||||||||||||||||
Other changes in capital and surplus | (33) | (12) | (6) | |||||||||||||||||
Capital and surplus at end of year | $ | 10,705 | 7,661 | 7,954 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
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2021 | 2020 | 2019 | ||||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Premiums and annuity considerations, net | $ | 14,291 | 10,543 | 13,030 | ||||||||||||||||
Net investment income | 5,069 | 4,990 | 5,000 | |||||||||||||||||
Commissions and expense allowances on reinsurance ceded | 385 | 36 | 86 | |||||||||||||||||
Fees from separate accounts | 574 | 567 | 613 | |||||||||||||||||
Other | 256 | 217 | 71 | |||||||||||||||||
Cash provided by operating activities | 20,575 | 16,353 | 18,800 | |||||||||||||||||
Benefits and expenses paid: | ||||||||||||||||||||
Benefit and loss-related payments | 19,238 | 9,513 | 9,469 | |||||||||||||||||
Net transfers to separate accounts | 2,766 | 1,128 | 5,534 | |||||||||||||||||
Commissions, expenses paid, and aggregate write-ins for deductions | 2,119 | 1,727 | 1,881 | |||||||||||||||||
Income tax paid, net | 709 | 290 | 338 | |||||||||||||||||
Other | (16) | (6) | 67 | |||||||||||||||||
Cash used in operating activities | 24,816 | 12,652 | 17,289 | |||||||||||||||||
Net cash (used in) provided by operating activities | (4,241) | 3,701 | 1,511 | |||||||||||||||||
Cash flow from investing activities: | ||||||||||||||||||||
Proceeds from investments sold, matured or repaid: | ||||||||||||||||||||
Bonds | 30,622 | 8,935 | 15,892 | |||||||||||||||||
Stocks | 282 | 147 | 113 | |||||||||||||||||
Mortgage loans | 1,806 | 1,024 | 1,356 | |||||||||||||||||
Real estate | 3 | — | — | |||||||||||||||||
Other invested assets | 81 | 60 | 32 | |||||||||||||||||
Derivatives | 1,213 | 861 | 1,429 | |||||||||||||||||
Miscellaneous proceeds | 35 | 2 | 1,572 | |||||||||||||||||
Cash provided by investing activities | 34,042 | 11,029 | 20,394 | |||||||||||||||||
Cost of investments acquired: | ||||||||||||||||||||
Bonds | 24,350 | 10,885 | 15,976 | |||||||||||||||||
Stocks | 292 | 230 | 145 | |||||||||||||||||
Mortgage loans | 3,347 | 2,482 | 2,283 | |||||||||||||||||
Real estate | 17 | 10 | 11 | |||||||||||||||||
Other invested assets | 408 | 156 | 192 | |||||||||||||||||
Miscellaneous applications | 78 | 485 | 812 | |||||||||||||||||
Cash used in investing activities | 28,492 | 14,248 | 19,419 | |||||||||||||||||
Net increase in policy loans and premium notes | 12 | 21 | 20 | |||||||||||||||||
Net cash provided by (used in) investing activities | 5,538 | (3,240) | 955 | |||||||||||||||||
Cash flow from financing and miscellaneous activities: | ||||||||||||||||||||
Change in borrowed money | 500 | 500 | 500 | |||||||||||||||||
Payments on deposit-type contracts and other insurance liabilities, net of deposits | (1,264) | (1,290) | (1,333) | |||||||||||||||||
Dividends paid to parent | (900) | (750) | (325) | |||||||||||||||||
Other cash provided (used) | 2,672 | 121 | (366) | |||||||||||||||||
Net cash provided by (used in) financing and miscellaneous activities | 1,008 | (1,419) | (1,524) | |||||||||||||||||
Net change in cash, cash equivalents, and short-term investments | 2,305 | (958) | 942 | |||||||||||||||||
Cash, cash equivalents, and short-term investments: | ||||||||||||||||||||
Beginning of year | 910 | 1,868 | 926 | |||||||||||||||||
End of year | $ | 3,215 | 910 | 1,868 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
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2021 | 2020 | |||||||
Hedge adjustment balance - beginning of year | $ | 513 | $ | 582 | ||||
Amount amortized into earnings during the year | (58) | (69) | ||||||
Hedge adjustment balance - end of year | $ | 455 | $ | 513 |
2021 | 2020 | |||||||
Net deferred balance - beginning of year | $ | 1,844 | $ | 1,435 | ||||
Amortization | (240) | (214) | ||||||
Additional amounts deferred | (167) | 623 | ||||||
Net deferred balance - end of year | $ | 1,437 | $ | 1,844 |
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Amortization year | Deferred assets | Deferred liabilities | |||||||||||||||
2022 | $ | (189) | $ | 501 | |||||||||||||
2023 | (189) | 501 | |||||||||||||||
2024 | (189) | 501 | |||||||||||||||
2025 | (189) | 501 | |||||||||||||||
2026 | (96) | 255 | |||||||||||||||
2027 | (3) | 9 | |||||||||||||||
2028 | (3) | 9 | |||||||||||||||
2029 | (3) | 9 | |||||||||||||||
2030 | (3) | 9 | |||||||||||||||
2031 | (3) | $ | 9 | ||||||||||||||
Total | $ | (867) | $ | 2,304 |
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2021 | 2020 | |||||||
Hedge adjustment balance - beginning of year | $ | 513 | $ | 582 | ||||
Amount amortized into earnings during the year | (58) | (69) | ||||||
Hedge adjustment balance - end of year | $ | 455 | $ | 513 |
2021 | 2020 | |||||||
Net deferred balance - beginning of year | $ | 1,844 | $ | 1,435 | ||||
Amortization | (240) | (214) | ||||||
Additional amounts deferred | (167) | 623 | ||||||
Net deferred balance - end of year | $ | 1,437 | $ | 1,844 |
Amortization year | Deferred assets | Deferred liabilities | |||||||||||||||
2022 | $ | (189) | $ | 501 | |||||||||||||
2023 | (189) | 501 | |||||||||||||||
2024 | (189) | 501 | |||||||||||||||
2025 | (189) | 501 | |||||||||||||||
2026 | (96) | 255 | |||||||||||||||
2027 | (3) | 9 | |||||||||||||||
2028 | (3) | 9 | |||||||||||||||
2029 | (3) | 9 | |||||||||||||||
2030 | (3) | 9 | |||||||||||||||
2031 | (3) | $ | 9 | ||||||||||||||
Total | $ | (867) | $ | 2,304 |
2021 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
U.S. government | $ | 3,644 | 147 | 39 | 3,752 | |||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government | 299 | — | — | 299 | ||||||||||||||||||||||
States and political subdivisions | 9,119 | 1,973 | 6 | 11,086 | ||||||||||||||||||||||
Foreign governments | 1,619 | 75 | 16 | 1,678 | ||||||||||||||||||||||
Corporate securities | 68,444 | 8,191 | 275 | 76,360 | ||||||||||||||||||||||
Mortgage-backed securities | 11,645 | 564 | 26 | 12,183 | ||||||||||||||||||||||
Collateralized debt obligations | 12 | 8 | — | 20 | ||||||||||||||||||||||
Total bonds | 94,782 | 10,958 | 362 | 105,378 | ||||||||||||||||||||||
Common stocks | 278 | 27 | 2 | 303 | ||||||||||||||||||||||
Preferred stocks | — | — | — | — | ||||||||||||||||||||||
Total | $ | 95,060 | 10,985 | 364 | 105,681 |
2020 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
U.S. government | $ | 3,318 | 300 | 10 | 3,608 | |||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government | 3 | 1 | — | 4 | ||||||||||||||||||||||
States and political subdivisions | 9,536 | 2,335 | 2 | 11,869 | ||||||||||||||||||||||
Foreign governments | 1,138 | 125 | 2 | 1,261 | ||||||||||||||||||||||
Corporate securities | 70,975 | 12,730 | 90 | 83,615 | ||||||||||||||||||||||
Mortgage-backed securities | 14,126 | 1,232 | 9 | 15,349 | ||||||||||||||||||||||
Collateralized debt obligations | 17 | 12 | — | 29 | ||||||||||||||||||||||
Total bonds | 99,113 | 16,735 | 113 | 115,735 | ||||||||||||||||||||||
Common stocks | 217 | 18 | 1 | 234 | ||||||||||||||||||||||
Preferred stocks | 41 | 2 | — | 43 | ||||||||||||||||||||||
Total | $ | 99,371 | 16,755 | 114 | 116,012 |
Carrying value | Fair value | ||||||||||
Due in 1 year or less | $ | 1,707 | $ | 1,716 | |||||||
Due after 1 year through 5 years | 9,030 | 9,592 | |||||||||
Due after 5 years through 10 years | 17,877 | 19,148 | |||||||||
Due after 10 years through 20 years | 25,696 | 29,965 | |||||||||
Due after 20 years | 27,949 | 31,836 | |||||||||
No maturity date | 866 | 918 | |||||||||
Mortgage-backed and other structured securities | 11,657 | 12,203 | |||||||||
Total bonds and other assets receiving bond treatment | $ | 94,782 | $ | 105,378 |
2021 | 2020 | 2019 | ||||||||||||||||||
Proceeds from sales | $ | 30,577 | 8,677 | 15,892 | ||||||||||||||||
Gross gains | 1,313 | 162 | 75 | |||||||||||||||||
Gross losses | 101 | 28 | 34 |
2021 | 2020 | 2019 | ||||||||||||||||||
Proceeds from sales | $ | 241 | 147 | 111 | ||||||||||||||||
Gross gains | 11 | 3 | 2 | |||||||||||||||||
Gross losses | — | 2 | 2 |
2021 | 2020 | 2019 | ||||||||||||||||||
Proceeds from sales | $ | 40 | — | 2 | ||||||||||||||||
Gross gains | 1 | — | — | |||||||||||||||||
Gross losses | — | — | — |
2021 | ||||||||||||||||||||||||||||||||||||||
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 | $ | 396 | 17 | 272 | 22 | 668 | 39 | |||||||||||||||||||||||||||||||
Foreign government | 513 | 13 | 41 | 3 | 554 | 16 | ||||||||||||||||||||||||||||||||
States and political subdivisions | 208 | 5 | 21 | 1 | 229 | 6 | ||||||||||||||||||||||||||||||||
Corporate securities | 9,417 | 207 | 1,083 | 68 | 10,500 | 275 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 977 | 19 | 124 | 7 | 1,101 | 26 | ||||||||||||||||||||||||||||||||
Total bonds | 11,511 | 261 | 1,541 | 101 | 13,052 | 362 | ||||||||||||||||||||||||||||||||
Common stock | 53 | 2 | 3 | — | 56 | 2 | ||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 11,564 | 263 | 1,544 | 101 | 13,108 | 364 |
2020 | ||||||||||||||||||||||||||||||||||||||
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 | $ | 374 | 10 | — | — | 374 | 10 | |||||||||||||||||||||||||||||||
Foreign government | 51 | 2 | — | — | 51 | 2 | ||||||||||||||||||||||||||||||||
States and political subdivisions | 85 | 2 | — | — | 85 | 2 | ||||||||||||||||||||||||||||||||
Corporate securities | 2,085 | 78 | 578 | 12 | 2,663 | 90 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 158 | 5 | 41 | 4 | 199 | 9 | ||||||||||||||||||||||||||||||||
Total bonds | 2,753 | 97 | 619 | 16 | 3,372 | 113 | ||||||||||||||||||||||||||||||||
Common stock | 7 | — | 9 | 1 | 16 | 1 | ||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 2,760 | 97 | 628 | 17 | 3,388 | 114 |
2021 | 2020 | 2019 | |||||||||||||||
Bonds | $ | 1,199 | (120) | 13 | |||||||||||||
Stocks | 11 | 2 | — | ||||||||||||||
Mortgage Loans | (8) | (34) | — | ||||||||||||||
Derivatives | 1,883 | 202 | 1,062 | ||||||||||||||
Other | (39) | (1) | (2) | ||||||||||||||
Total realized capital gains (losses) | 3,046 | 49 | 1,073 | ||||||||||||||
Income tax benefit (expense) on net realized gains (losses) | (249) | — | 11 | ||||||||||||||
Total realized capital gains (losses), net of taxes | 2,797 | 49 | 1,084 | ||||||||||||||
Net gains (losses) transferred to IMR, net of taxes | 941 | (93) | 31 | ||||||||||||||
Net realized gains (losses), net of taxes and IMR | $ | 1,856 | 142 | 1,053 |
2021 | 2020 | 2019 | |||||||||||||||
Interest: | |||||||||||||||||
Bonds | $ | 4,233 | 4,189 | 4,319 | |||||||||||||
Mortgage loans on real estate | 682 | 647 | 617 | ||||||||||||||
Policy loans | 12 | 12 | 11 | ||||||||||||||
Cash, cash equivalents, and short-term investments | — | 7 | 23 | ||||||||||||||
Dividends: | |||||||||||||||||
Stocks | 13 | 7 | 7 | ||||||||||||||
Investment in subsidiaries | 51 | 50 | 67 | ||||||||||||||
Rental income on real estate | 20 | 20 | 13 | ||||||||||||||
Derivatives | 37 | (14) | (109) | ||||||||||||||
Other | (92) | 47 | (7) | ||||||||||||||
Gross investment income | 4,956 | 4,965 | 4,941 | ||||||||||||||
Investment expenses | (137) | (138) | (146) | ||||||||||||||
Net investment income before amortization of IMR | 4,819 | 4,827 | 4,795 | ||||||||||||||
Amortization of IMR | 47 | 37 | 44 | ||||||||||||||
Net investment income | $ | 4,866 | 4,864 | 4,839 |
2021 | 2020 | ||||||||||||||||
Concentration Amount | Concentration % | Concentration Amount | Concentration % | ||||||||||||||
California | $ | 3,605 | 22.9 | % | $ | 3,356 | 22.6 | % |
2021 | 2020 | ||||||||||||||||
Concentration Amount | Concentration % | Concentration Amount | Concentration % | ||||||||||||||
California | $ | 500 | 35.6 | % | $ | 353 | 46.3 | % | |||||||||
Florida | — | — | % | 80 | 10.4 | % |
2021 | 2020 | ||||||||||||||||
Residential | Commercial | Residential | Commercial | ||||||||||||||
Current | $ | 1,364 | 15,732 | 693 | 14,813 | ||||||||||||
30-59 Days Past Due | 14 | — | 18 | — | |||||||||||||
60-89 Days Past Due | 2 | — | 2 | — | |||||||||||||
90-179 Days Past Due | 11 | — | 4 | — | |||||||||||||
180+ Days Past Due | 15 | 16 | 47 | 57 | |||||||||||||
Total | $ | 1,406 | 15,748 | 764 | 14,870 |
2021 | 2020 | ||||||||||||||||
Residential | Commercial | Residential | Commercial | ||||||||||||||
Accruing Interest 90-179 Days Past Due | |||||||||||||||||
Recorded Investment | $ | — | — | 2 | — | ||||||||||||
Interest Accrued | — | — | — | — | |||||||||||||
Accruing Interest 180+ Days Past Due | |||||||||||||||||
Recorded Investment | — | — | — | — | |||||||||||||
Interest Accrued | — | — | — | — |
Debt Service Coverage Ratios | |||||||||||||||||||||||||||||||||||
2021: | 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% | $ | 4,528 | 59 | 98 | 663 | 5,348 | 34.0 | % | |||||||||||||||||||||||||||
50% – 60% | 4,459 | 775 | 249 | 824 | 6,307 | 40.0 | % | ||||||||||||||||||||||||||||
60% – 70% | 2,077 | 1,099 | 281 | 444 | 3,901 | 24.8 | % | ||||||||||||||||||||||||||||
70% – 80% | 23 | 89 | 35 | 29 | 176 | 1.1 | % | ||||||||||||||||||||||||||||
80% – 90% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
90% – 100% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
Greater than 100% | — | — | 16 | — | 16 | 0.1 | % | ||||||||||||||||||||||||||||
Total | $ | 11,087 | 2,022 | 679 | 1,960 | 15,748 | 100.0 | % |
Debt Service Coverage Ratios | |||||||||||||||||||||||||||||||||||
2020: | 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% | $ | 3,992 | 73 | 52 | 622 | 4,739 | 31.9 | % | |||||||||||||||||||||||||||
50% – 60% | 4,477 | 770 | 132 | 359 | 5,738 | 38.6 | % | ||||||||||||||||||||||||||||
60% – 70% | 2,288 | 905 | 273 | 582 | 4,048 | 27.2 | % | ||||||||||||||||||||||||||||
70% – 80% | — | 163 | 102 | 35 | 300 | 2.0 | % | ||||||||||||||||||||||||||||
80% – 90% | — | — | 21 | — | 21 | 0.1 | % | ||||||||||||||||||||||||||||
90% – 100% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
Greater than 100% | — | — | 25 | — | 25 | 0.2 | % | ||||||||||||||||||||||||||||
Total | $ | 10,757 | 1,911 | 605 | 1,598 | 14,871 | 100.0 | % |
2021 | 2020 | ||||||||||||||||||||||
Total | Percent of Total | Total | Percent of Total | ||||||||||||||||||||
Loan-to-value ratios: | |||||||||||||||||||||||
Below 70% | $ | 353 | 25.1 | % | $ | 165 | 21.6 | % | |||||||||||||||
71% to 80% | 705 | 50.1 | % | 381 | 49.9 | % | |||||||||||||||||
81% to 90% | 316 | 22.5 | % | 206 | 27.0 | % | |||||||||||||||||
91% to 95% | 33 | 2.3 | % | 12 | 1.6 | % | |||||||||||||||||
Above 95% | — | — | % | — | — | % | |||||||||||||||||
Total | $ | 1,407 | 100.0 | % | $ | 764 | 100.0 | % |
2021 | |||||||||||||||||||||||
OTTI Recognized in Loss | |||||||||||||||||||||||
Amortized Cost Basis Before OTTI | Interest | Non-Interest | Fair Value | ||||||||||||||||||||
OTTI Recognized: | |||||||||||||||||||||||
Intent to sell | $ | 41 | 3 | — | 38 | ||||||||||||||||||
Annual aggregate total | $ | 41 | 3 | — | 38 |
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2021 | 2020 | |||||||
Hedge adjustment balance - beginning of year | $ | 513 | $ | 582 | ||||
Amount amortized into earnings during the year | (58) | (69) | ||||||
Hedge adjustment balance - end of year | $ | 455 | $ | 513 |
2021 | 2020 | |||||||
Net deferred balance - beginning of year | $ | 1,844 | $ | 1,435 | ||||
Amortization | (240) | (214) | ||||||
Additional amounts deferred | (167) | 623 | ||||||
Net deferred balance - end of year | $ | 1,437 | $ | 1,844 |
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Amortization year | Deferred assets | Deferred liabilities | |||||||||||||||
2022 | $ | (189) | $ | 501 | |||||||||||||
2023 | (189) | 501 | |||||||||||||||
2024 | (189) | 501 | |||||||||||||||
2025 | (189) | 501 | |||||||||||||||
2026 | (96) | 255 | |||||||||||||||
2027 | (3) | 9 | |||||||||||||||
2028 | (3) | 9 | |||||||||||||||
2029 | (3) | 9 | |||||||||||||||
2030 | (3) | 9 | |||||||||||||||
2031 | (3) | $ | 9 | ||||||||||||||
Total | $ | (867) | $ | 2,304 |
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Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
U.S. government | $ | 3,644 | 147 | 39 | 3,752 | |||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government | 299 | — | — | 299 | ||||||||||||||||||||||
States and political subdivisions | 9,119 | 1,973 | 6 | 11,086 | ||||||||||||||||||||||
Foreign governments | 1,619 | 75 | 16 | 1,678 | ||||||||||||||||||||||
Corporate securities | 68,444 | 8,191 | 275 | 76,360 | ||||||||||||||||||||||
Mortgage-backed securities | 11,645 | 564 | 26 | 12,183 | ||||||||||||||||||||||
Collateralized debt obligations | 12 | 8 | — | 20 | ||||||||||||||||||||||
Total bonds | 94,782 | 10,958 | 362 | 105,378 | ||||||||||||||||||||||
Common stocks | 278 | 27 | 2 | 303 | ||||||||||||||||||||||
Preferred stocks | — | — | — | — | ||||||||||||||||||||||
Total | $ | 95,060 | 10,985 | 364 | 105,681 |
2020 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
U.S. government | $ | 3,318 | 300 | 10 | 3,608 | |||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government | 3 | 1 | — | 4 | ||||||||||||||||||||||
States and political subdivisions | 9,536 | 2,335 | 2 | 11,869 | ||||||||||||||||||||||
Foreign governments | 1,138 | 125 | 2 | 1,261 | ||||||||||||||||||||||
Corporate securities | 70,975 | 12,730 | 90 | 83,615 | ||||||||||||||||||||||
Mortgage-backed securities | 14,126 | 1,232 | 9 | 15,349 | ||||||||||||||||||||||
Collateralized debt obligations | 17 | 12 | — | 29 | ||||||||||||||||||||||
Total bonds | 99,113 | 16,735 | 113 | 115,735 | ||||||||||||||||||||||
Common stocks | 217 | 18 | 1 | 234 | ||||||||||||||||||||||
Preferred stocks | 41 | 2 | — | 43 | ||||||||||||||||||||||
Total | $ | 99,371 | 16,755 | 114 | 116,012 |
28 of 67 |
Carrying value | Fair value | ||||||||||
Due in 1 year or less | $ | 1,707 | $ | 1,716 | |||||||
Due after 1 year through 5 years | 9,030 | 9,592 | |||||||||
Due after 5 years through 10 years | 17,877 | 19,148 | |||||||||
Due after 10 years through 20 years | 25,696 | 29,965 | |||||||||
Due after 20 years | 27,949 | 31,836 | |||||||||
No maturity date | 866 | 918 | |||||||||
Mortgage-backed and other structured securities | 11,657 | 12,203 | |||||||||
Total bonds and other assets receiving bond treatment | $ | 94,782 | $ | 105,378 |
2021 | 2020 | 2019 | ||||||||||||||||||
Proceeds from sales | $ | 30,577 | 8,677 | 15,892 | ||||||||||||||||
Gross gains | 1,313 | 162 | 75 | |||||||||||||||||
Gross losses | 101 | 28 | 34 |
2021 | 2020 | 2019 | ||||||||||||||||||
Proceeds from sales | $ | 241 | 147 | 111 | ||||||||||||||||
Gross gains | 11 | 3 | 2 | |||||||||||||||||
Gross losses | — | 2 | 2 |
2021 | 2020 | 2019 | ||||||||||||||||||
Proceeds from sales | $ | 40 | — | 2 | ||||||||||||||||
Gross gains | 1 | — | — | |||||||||||||||||
Gross losses | — | — | — |
29 of 67 |
2021 | ||||||||||||||||||||||||||||||||||||||
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 | $ | 396 | 17 | 272 | 22 | 668 | 39 | |||||||||||||||||||||||||||||||
Foreign government | 513 | 13 | 41 | 3 | 554 | 16 | ||||||||||||||||||||||||||||||||
States and political subdivisions | 208 | 5 | 21 | 1 | 229 | 6 | ||||||||||||||||||||||||||||||||
Corporate securities | 9,417 | 207 | 1,083 | 68 | 10,500 | 275 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 977 | 19 | 124 | 7 | 1,101 | 26 | ||||||||||||||||||||||||||||||||
Total bonds | 11,511 | 261 | 1,541 | 101 | 13,052 | 362 | ||||||||||||||||||||||||||||||||
Common stock | 53 | 2 | 3 | — | 56 | 2 | ||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 11,564 | 263 | 1,544 | 101 | 13,108 | 364 |
2020 | ||||||||||||||||||||||||||||||||||||||
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 | $ | 374 | 10 | — | — | 374 | 10 | |||||||||||||||||||||||||||||||
Foreign government | 51 | 2 | — | — | 51 | 2 | ||||||||||||||||||||||||||||||||
States and political subdivisions | 85 | 2 | — | — | 85 | 2 | ||||||||||||||||||||||||||||||||
Corporate securities | 2,085 | 78 | 578 | 12 | 2,663 | 90 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 158 | 5 | 41 | 4 | 199 | 9 | ||||||||||||||||||||||||||||||||
Total bonds | 2,753 | 97 | 619 | 16 | 3,372 | 113 | ||||||||||||||||||||||||||||||||
Common stock | 7 | — | 9 | 1 | 16 | 1 | ||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 2,760 | 97 | 628 | 17 | 3,388 | 114 |
30 of 67 |
2021 | 2020 | 2019 | |||||||||||||||
Bonds | $ | 1,199 | (120) | 13 | |||||||||||||
Stocks | 11 | 2 | — | ||||||||||||||
Mortgage Loans | (8) | (34) | — | ||||||||||||||
Derivatives | 1,883 | 202 | 1,062 | ||||||||||||||
Other | (39) | (1) | (2) | ||||||||||||||
Total realized capital gains (losses) | 3,046 | 49 | 1,073 | ||||||||||||||
Income tax benefit (expense) on net realized gains (losses) | (249) | — | 11 | ||||||||||||||
Total realized capital gains (losses), net of taxes | 2,797 | 49 | 1,084 | ||||||||||||||
Net gains (losses) transferred to IMR, net of taxes | 941 | (93) | 31 | ||||||||||||||
Net realized gains (losses), net of taxes and IMR | $ | 1,856 | 142 | 1,053 |
2021 | 2020 | 2019 | |||||||||||||||
Interest: | |||||||||||||||||
Bonds | $ | 4,233 | 4,189 | 4,319 | |||||||||||||
Mortgage loans on real estate | 682 | 647 | 617 | ||||||||||||||
Policy loans | 12 | 12 | 11 | ||||||||||||||
Cash, cash equivalents, and short-term investments | — | 7 | 23 | ||||||||||||||
Dividends: | |||||||||||||||||
Stocks | 13 | 7 | 7 | ||||||||||||||
Investment in subsidiaries | 51 | 50 | 67 | ||||||||||||||
Rental income on real estate | 20 | 20 | 13 | ||||||||||||||
Derivatives | 37 | (14) | (109) | ||||||||||||||
Other | (92) | 47 | (7) | ||||||||||||||
Gross investment income | 4,956 | 4,965 | 4,941 | ||||||||||||||
Investment expenses | (137) | (138) | (146) | ||||||||||||||
Net investment income before amortization of IMR | 4,819 | 4,827 | 4,795 | ||||||||||||||
Amortization of IMR | 47 | 37 | 44 | ||||||||||||||
Net investment income | $ | 4,866 | 4,864 | 4,839 |
2021 | 2020 | ||||||||||||||||
Concentration Amount | Concentration % | Concentration Amount | Concentration % | ||||||||||||||
California | $ | 3,605 | 22.9 | % | $ | 3,356 | 22.6 | % |
31 of 67 |
2021 | 2020 | ||||||||||||||||
Concentration Amount | Concentration % | Concentration Amount | Concentration % | ||||||||||||||
California | $ | 500 | 35.6 | % | $ | 353 | 46.3 | % | |||||||||
Florida | — | — | % | 80 | 10.4 | % |
2021 | 2020 | ||||||||||||||||
Residential | Commercial | Residential | Commercial | ||||||||||||||
Current | $ | 1,364 | 15,732 | 693 | 14,813 | ||||||||||||
30-59 Days Past Due | 14 | — | 18 | — | |||||||||||||
60-89 Days Past Due | 2 | — | 2 | — | |||||||||||||
90-179 Days Past Due | 11 | — | 4 | — | |||||||||||||
180+ Days Past Due | 15 | 16 | 47 | 57 | |||||||||||||
Total | $ | 1,406 | 15,748 | 764 | 14,870 |
2021 | 2020 | ||||||||||||||||
Residential | Commercial | Residential | Commercial | ||||||||||||||
Accruing Interest 90-179 Days Past Due | |||||||||||||||||
Recorded Investment | $ | — | — | 2 | — | ||||||||||||
Interest Accrued | — | — | — | — | |||||||||||||
Accruing Interest 180+ Days Past Due | |||||||||||||||||
Recorded Investment | — | — | — | — | |||||||||||||
Interest Accrued | — | — | — | — |
32 of 67 |
Debt Service Coverage Ratios | |||||||||||||||||||||||||||||||||||
2021: | 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% | $ | 4,528 | 59 | 98 | 663 | 5,348 | 34.0 | % | |||||||||||||||||||||||||||
50% – 60% | 4,459 | 775 | 249 | 824 | 6,307 | 40.0 | % | ||||||||||||||||||||||||||||
60% – 70% | 2,077 | 1,099 | 281 | 444 | 3,901 | 24.8 | % | ||||||||||||||||||||||||||||
70% – 80% | 23 | 89 | 35 | 29 | 176 | 1.1 | % | ||||||||||||||||||||||||||||
80% – 90% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
90% – 100% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
Greater than 100% | — | — | 16 | — | 16 | 0.1 | % | ||||||||||||||||||||||||||||
Total | $ | 11,087 | 2,022 | 679 | 1,960 | 15,748 | 100.0 | % |
Debt Service Coverage Ratios | |||||||||||||||||||||||||||||||||||
2020: | 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% | $ | 3,992 | 73 | 52 | 622 | 4,739 | 31.9 | % | |||||||||||||||||||||||||||
50% – 60% | 4,477 | 770 | 132 | 359 | 5,738 | 38.6 | % | ||||||||||||||||||||||||||||
60% – 70% | 2,288 | 905 | 273 | 582 | 4,048 | 27.2 | % | ||||||||||||||||||||||||||||
70% – 80% | — | 163 | 102 | 35 | 300 | 2.0 | % | ||||||||||||||||||||||||||||
80% – 90% | — | — | 21 | — | 21 | 0.1 | % | ||||||||||||||||||||||||||||
90% – 100% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
Greater than 100% | — | — | 25 | — | 25 | 0.2 | % | ||||||||||||||||||||||||||||
Total | $ | 10,757 | 1,911 | 605 | 1,598 | 14,871 | 100.0 | % |
33 of 67 |
2021 | 2020 | ||||||||||||||||||||||
Total | Percent of Total | Total | Percent of Total | ||||||||||||||||||||
Loan-to-value ratios: | |||||||||||||||||||||||
Below 70% | $ | 353 | 25.1 | % | $ | 165 | 21.6 | % | |||||||||||||||
71% to 80% | 705 | 50.1 | % | 381 | 49.9 | % | |||||||||||||||||
81% to 90% | 316 | 22.5 | % | 206 | 27.0 | % | |||||||||||||||||
91% to 95% | 33 | 2.3 | % | 12 | 1.6 | % | |||||||||||||||||
Above 95% | — | — | % | — | — | % | |||||||||||||||||
Total | $ | 1,407 | 100.0 | % | $ | 764 | 100.0 | % |
2021 | |||||||||||||||||||||||
OTTI Recognized in Loss | |||||||||||||||||||||||
Amortized Cost Basis Before OTTI | Interest | Non-Interest | Fair Value | ||||||||||||||||||||
OTTI Recognized: | |||||||||||||||||||||||
Intent to sell | $ | 41 | 3 | — | 38 | ||||||||||||||||||
Annual aggregate total | $ | 41 | 3 | — | 38 |
34 of 67 |
35 of 67 |
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
Gross Fair Value | Gross Fair Value | |||||||||||||||||||||||||||||||||||||
Notional (1) | Assets | Liabilities | Notional (1) | Assets | Liabilities | |||||||||||||||||||||||||||||||||
Cash flow hedging instruments | ||||||||||||||||||||||||||||||||||||||
Foreign currency swaps | $ | 1,583 | 81 | (33) | 1,341 | 56 | (76) | |||||||||||||||||||||||||||||||
Total cash flow hedging instruments | $ | 81 | (33) | 56 | (76) | |||||||||||||||||||||||||||||||||
Fair value hedging instruments | ||||||||||||||||||||||||||||||||||||||
IRS | $ | 2,696 | 305 | 3,511 | 2,709 | 472 | (40) | |||||||||||||||||||||||||||||||
Total fair value hedging instruments | $ | 305 | 3,511 | $ | 472 | (40) | ||||||||||||||||||||||||||||||||
Nonqualifying hedging instruments | ||||||||||||||||||||||||||||||||||||||
OTC options | $ | 55,270 | 2,174 | (1,822) | 51,430 | 3,433 | (3,013) | |||||||||||||||||||||||||||||||
ETO | 19,388 | 114 | (119) | 15,224 | 136 | (96) | ||||||||||||||||||||||||||||||||
TBA securities | 1,987 | — | — | 1,331 | 1 | (1) | ||||||||||||||||||||||||||||||||
IRS | 2,233 | 8 | (3,545) | 2,631 | 9 | (18) | ||||||||||||||||||||||||||||||||
Futures | 19,591 | — | — | 19,312 | — | — | ||||||||||||||||||||||||||||||||
TRS | 6,633 | — | (15) | 11,653 | 7 | (18) | ||||||||||||||||||||||||||||||||
Total nonqualifying hedging instruments | 2,296 | (5,501) | 3,586 | (3,146) | ||||||||||||||||||||||||||||||||||
Total derivative instruments | $ | 2,682 | (2,023) | 4,114 | (3,262) | |||||||||||||||||||||||||||||||||
(1) Notional amounts are presented on an absolute basis. | ||||||||||||||||||||||||||||||||||||||
36 of 67 |
Fair Value | ||||||||||||||
2021 | 2020 | |||||||||||||
Cash | ||||||||||||||
Open | 2,594 | 2,587 | ||||||||||||
30 days or less | — | — | ||||||||||||
31 to 60 days | — | — | ||||||||||||
61 to 90 days | — | — | ||||||||||||
Greater than 90 days | — | — | ||||||||||||
Subtotal | 2,594 | 2,587 | ||||||||||||
Securities received | 500 | 86 | ||||||||||||
Total collateral received | $ | 3,094 | 2,673 |
2021 | 2020 | |||||||||||||||||||||||||
Amortized cost | Fair value | Amortized cost | Fair value | |||||||||||||||||||||||
Open | — | — | — | — | ||||||||||||||||||||||
30 days or less | 949 | 949 | 950 | 950 | ||||||||||||||||||||||
31 to 60 days | 837 | 837 | 955 | 955 | ||||||||||||||||||||||
61 to 90 days | 61 | 61 | 66 | 66 | ||||||||||||||||||||||
91 to 120 days | 162 | 162 | — | — | ||||||||||||||||||||||
121 to 180 days | 308 | 308 | 143 | 143 | ||||||||||||||||||||||
181 to 365 days | 277 | 277 | 473 | 473 | ||||||||||||||||||||||
Greater than 1 year | — | — | — | — | ||||||||||||||||||||||
Total collateral reinvested | $ | 2,594 | 2,594 | 2,587 | 2,587 |
2021 | 2020 | ||||||||||
Cash and cash equivalents | $ | 1,665 | 1,630 | ||||||||
Short-term investments | 929 | 957 | |||||||||
Total | $ | 2,594 | 2,587 |
37 of 67 |
As of year end | 2021 | 2020 | ||||||||||||||||||
1. Maturity | ||||||||||||||||||||
a. Overnight | $ | 1,161 | 430 | |||||||||||||||||
b. 2 Days to 1 Week | — | — | ||||||||||||||||||
2. Collateral Pledged and Securities Acquired Under Repo | ||||||||||||||||||||
a. Cash Collateral Pledged - Secured Borrowing | $ | 1,161 | 430 | |||||||||||||||||
b. Fair Value of Securities Acquired Under Repo - Secured Borrowing | 1,161 | 435 |
Maximum Amount | 2021 | 2020 | ||||||||||||||||||
1. Maturity | ||||||||||||||||||||
a. Overnight | $ | 1,161 | 2,878 | |||||||||||||||||
b. 2 Days to 1 Week | — | — | ||||||||||||||||||
2. Collateral Pledged and Securities Acquired Under Repo | ||||||||||||||||||||
a. Cash Collateral Pledged - Secured Borrowing | $ | 1,161 | 2,878 | |||||||||||||||||
b. Fair Value of Securities Acquired Under Repo - Secured Borrowing | 1,161 | 2,906 |
SCA Name | Gross Asset | Non-Admitted Asset | Net Admitted Assets | NAIC Filing Date | NAIC Filing Type | NAIC Filing Balance | Re-submission Required? | |||||||||||||||||||||||||||||||||||||
AZLPF | $ | 789 | — | 789 | 5/25/2021 | S2 | 777 | N | ||||||||||||||||||||||||||||||||||||
Total | $ | 789 | — | 789 | XXX | XXX | 777 | XXX |
2021 | 2020 | |||||||||||||
Carrying value | $ | 1,988 | 1,336 | |||||||||||
Fair value | 2,381 | 1,736 |
2021 | 2020 | |||||||||||||
Carrying value | $ | 4,290 | 1,994 | |||||||||||
Fair value | 5,052 | 2,254 |
38 of 67 |
Gross Restricted | Percentage | |||||||||||||||||||||||||||||||||||||
Total general account | Total from 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 | $ | 3,094 | 2,673 | 421 | 3,094 | 1.8 | % | 1.8 | % | |||||||||||||||||||||||||||||
FHLB Capital Stock | 90 | 70 | 20 | 90 | — | — | ||||||||||||||||||||||||||||||||
On deposit with states | 4 | 4 | — | 4 | — | — | ||||||||||||||||||||||||||||||||
On deposit with other regulatory bodies | 27 | 19 | 8 | 27 | — | — | ||||||||||||||||||||||||||||||||
Pledged as collateral to FHLB (including assets backing funding agreements) | 1,988 | 1,336 | 652 | 1,988 | 1.1 | 1.1 | ||||||||||||||||||||||||||||||||
Derivative collateral | 2,338 | 2,266 | 72 | 2,338 | 1.3 | 1.3 | ||||||||||||||||||||||||||||||||
Modco Assets | 25,773 | — | 25,773 | 25,773 | 14.8 | 14.9 | ||||||||||||||||||||||||||||||||
Total restricted assets | $ | 33,314 | 6,368 | 26,946 | 33,314 | 19.0 | % | 19.1 | % |
2021 | 2020 | ||||||||||||||||||||||
Number of Securities | Aggregate Book Adjusted Carrying Value | Aggregate Fair Value | Number of Securities | Aggregate Book Adjusted Carrying Value | Aggregate Fair Value | ||||||||||||||||||
Bonds | — | $ | — | — | — | $ | — | — | |||||||||||||||
Loan-backed and structured securities | — | — | — | 1 | 1 | 1 | |||||||||||||||||
Total | — | $ | — | — | 1 | $ | 1 | 1 |
39 of 67 |
2021 | ||||||||||||||||||||||||||
Level 1 | Level 2 (a) | Level 3 | Total | |||||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||||||||
Bonds | $ | — | 3 | — | 3 | |||||||||||||||||||||
Common stocks | $ | 213 | — | — | 213 | |||||||||||||||||||||
Derivative assets | 114 | 2,644 | — | 2,758 | ||||||||||||||||||||||
Separate account assets | 21,319 | 7,043 | — | 28,362 | ||||||||||||||||||||||
Total assets reported at fair value | 21,646 | 9,690 | — | 31,336 | ||||||||||||||||||||||
Liabilities at fair value: | ||||||||||||||||||||||||||
Derivative liabilities | 119 | 1,894 | 15 | 2,028 | ||||||||||||||||||||||
Separate account derivative liabilities | — | 5,329 | — | 5,329 | ||||||||||||||||||||||
Total liabilities reported at fair value | $ | 119 | 7,223 | 15 | 7,357 | |||||||||||||||||||||
(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. |
40 of 67 |
2020 | ||||||||||||||||||||||||||
Level 1 | Level 2 (a) | Level 3 | Total | |||||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||||||||
Bonds | $ | — | 4 | — | 4 | |||||||||||||||||||||
Common stocks | 163 | — | 1 | 164 | ||||||||||||||||||||||
Derivative assets | 136 | 4,036 | 7 | 4,179 | ||||||||||||||||||||||
Separate account assets | 21,789 | 11,408 | — | 33,197 | ||||||||||||||||||||||
Total assets reported at fair value | 22,088 | 15,448 | 8 | 37,544 | ||||||||||||||||||||||
Liabilities at fair value: | ||||||||||||||||||||||||||
Derivative liabilities | 96 | 3,161 | 18 | 3,275 | ||||||||||||||||||||||
Separate account derivative liabilities | — | 10,332 | — | 10,332 | ||||||||||||||||||||||
Total liabilities reported at fair value | $ | 96 | 13,493 | 18 | 13,607 | |||||||||||||||||||||
(a) The Company does not have any assets or liabilities measured at NAV that are included in Level 2 within this table. |
41 of 67 |
42 of 67 |
January 1, 2021 | 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, 2021 | |||||||||||||||||
Preferred stocks | — | 41 | — | — | — | (41) | — | ||||||||||||||||
Common stocks | 1 | — | — | — | — | (1) | — | ||||||||||||||||
TRS assets | 7 | — | — | 297 | (7) | (297) | — | ||||||||||||||||
Total Level 3 Assets | 8 | — | — | 297 | (7) | (298) | — | ||||||||||||||||
TRS liabilities | (18) | — | — | (423) | 3 | 423 | (15) | ||||||||||||||||
Total Level 3 Liabilities | $ | (18) | — | — | (423) | 3 | 423 | (15) |
January 1, 2020 | 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, 2020 | |||||||||||||||||
Common stocks | 1 | — | — | — | — | 1 | |||||||||||||||||
TRS assets | 1 | — | — | 960 | 6 | (960) | 7 | ||||||||||||||||
Total Level 3 Assets | 2 | — | — | 960 | 6 | (960) | 8 | ||||||||||||||||
TRS liabilities | (13) | — | — | (568) | (5) | 568 | (18) | ||||||||||||||||
Total Level 3 Liabilities | $ | (13) | — | — | (568) | (5) | 568 | (18) |
43 of 67 |
2021 | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Aggregate Fair Value | Admitted Assets/ Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||
Bonds | $ | 104,413 | 93,817 | 4,062 | 81,773 | 18,578 | ||||||||||||||||||||||||||
Common stocks, unaffiliated | 303 | 303 | 213 | — | 90 | |||||||||||||||||||||||||||
Mortgage loans on real estate | 17,673 | 17,154 | — | — | 17,673 | |||||||||||||||||||||||||||
Cash equivalents | 3,210 | 3,210 | 1,694 | 1,516 | — | |||||||||||||||||||||||||||
Derivative assets | 2,758 | 2,682 | 114 | 2,644 | — | |||||||||||||||||||||||||||
Securities lending reinvested collateral assets | 2,594 | 2,594 | — | 2,594 | — | |||||||||||||||||||||||||||
Other invested assets | 1,052 | 1,052 | — | 102 | 950 | |||||||||||||||||||||||||||
COLI | 713 | 713 | — | 713 | — | |||||||||||||||||||||||||||
Separate account assets | 49,082 | 48,279 | 22,298 | 26,784 | — | |||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Deposit-type contracts | $ | 5,056 | 4,577 | — | — | 5,056 | ||||||||||||||||||||||||||
Other investment contracts | 97,132 | 88,311 | — | — | 97,132 | |||||||||||||||||||||||||||
Borrowed money | 1,976 | 2,001 | — | — | 1,976 | |||||||||||||||||||||||||||
Derivative liabilities | 2,028 | 2,023 | 119 | 1,894 | 15 | |||||||||||||||||||||||||||
Payable for securities lending | 2,594 | 2,594 | — | 2,594 | — | |||||||||||||||||||||||||||
Payable for securities | 271 | 271 | — | — | 271 | |||||||||||||||||||||||||||
Separate account liabilities | 49,082 | 48,279 | 22,298 | 26,784 | — | |||||||||||||||||||||||||||
(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. |
44 of 67 |
2020 | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Aggregate Fair Value | Admitted Assets/ Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||
Bonds | $ | 115,710 | 99,088 | 4,995 | 93,714 | 17,001 | ||||||||||||||||||||||||||
Preferred stocks, unaffiliated | 43 | 41 | — | — | 43 | |||||||||||||||||||||||||||
Common stocks, unaffiliated | 234 | 234 | 163 | — | 71 | |||||||||||||||||||||||||||
Mortgage loans on real estate | 17,117 | 15,634 | — | — | 17,117 | |||||||||||||||||||||||||||
Cash equivalents | 878 | 878 | 448 | 430 | — | |||||||||||||||||||||||||||
Derivative assets | 4,179 | 4,114 | 136 | 4,036 | 7 | |||||||||||||||||||||||||||
Securities lending reinvested collateral assets | 2,587 | 2,587 | — | 2,587 | — | |||||||||||||||||||||||||||
Other invested assets | 757 | 757 | — | 23 | 734 | |||||||||||||||||||||||||||
COLI | 653 | 653 | — | 653 | — | |||||||||||||||||||||||||||
Separate account assets | 46,886 | 45,901 | 22,732 | 24,154 | — | |||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Deposit-type contracts | $ | 5,395 | 4,749 | — | — | 5,395 | ||||||||||||||||||||||||||
Other investment contracts | 103,518 | 95,083 | — | — | 103,518 | |||||||||||||||||||||||||||
Borrowed money | 1,516 | 1,501 | — | — | 1,516 | |||||||||||||||||||||||||||
Derivative liabilities | 3,275 | 3,262 | 96 | 3,161 | 18 | |||||||||||||||||||||||||||
Payable for securities lending | 2,587 | 2,587 | — | 2,587 | — | |||||||||||||||||||||||||||
Payable for securities | 199 | 199 | — | — | 199 | |||||||||||||||||||||||||||
Separate account liabilities | 46,886 | 45,901 | 22,732 | 24,154 | — | |||||||||||||||||||||||||||
(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. |
45 of 67 |
2021 | 2020 | |||||||
Bonds | 47.0 | % | 80.0 | % | ||||
Stocks | 21.0 | % | 20.0 | % | ||||
Other Invested Assets | 32.0 | % | — | % |
46 of 67 |
2022 | $ | 11 | |||
2023 | 12 | ||||
2024 | 8 | ||||
2025 | — | ||||
2026 | — | ||||
2027 and beyond | — | ||||
Total | $ | 31 |
47 of 67 |
2021 | 2020 | ||||||||||
Amortization: | |||||||||||
Software amortization | 8 | 7 | |||||||||
Net EDP balance, by major classes of assets: | |||||||||||
Servers, computers and peripherals | — | 2 | |||||||||
Software | 53 | 38 | |||||||||
Net EDP balance | 53 | 40 | |||||||||
Nonadmitted | (53) | (38) | |||||||||
Net admitted EDP balance | $ | — | 2 |
December 31, 2021 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets | $ | 998 | 48 | 1,046 | |||||||||||||
Statutory valuation allowance adjustments | — | — | — | ||||||||||||||
Adjusted gross deferred tax assets | 998 | 48 | 1,046 | ||||||||||||||
Deferred tax assets nonadmitted | (6) | — | (6) | ||||||||||||||
Subtotal net admitted deferred tax assets | 992 | 48 | 1,040 | ||||||||||||||
Deferred tax liabilities | (536) | (17) | (553) | ||||||||||||||
Net admitted deferred tax assets (liabilities) | $ | 456 | 31 | 487 |
December 31, 2020 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets | $ | 911 | 52 | 963 | |||||||||||||
Statutory valuation allowance adjustments | — | — | — | ||||||||||||||
Adjusted gross deferred tax assets | 911 | 52 | 963 | ||||||||||||||
Deferred tax assets nonadmitted | — | — | — | ||||||||||||||
Subtotal net admitted deferred tax assets | 911 | 52 | 963 | ||||||||||||||
Deferred tax liabilities | (684) | (6) | (690) | ||||||||||||||
Net admitted deferred tax assets (liabilities) | $ | 227 | 46 | 273 |
48 of 67 |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets | $ | 87 | (4) | 83 | |||||||||||||
Statutory valuation allowance adjustments | — | — | — | ||||||||||||||
Adjusted gross deferred tax assets | 87 | (4) | 83 | ||||||||||||||
Deferred tax assets nonadmitted | (6) | — | (6) | ||||||||||||||
Subtotal net admitted deferred tax assets | 81 | (4) | 77 | ||||||||||||||
Deferred tax liabilities | 147 | (10) | 137 | ||||||||||||||
Net admitted deferred tax assets (liabilities) | $ | 228 | (14) | 214 |
December 31, 2021 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | 48 | 48 | |||||||||||||
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.) | 456 | — | 456 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii) | N/A | N/A | 1,533 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii | 456 | — | 456 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c) | 536 | — | 536 | ||||||||||||||
Deferred tax assets admitted | $ | 992 | 48 | 1,040 |
December 31, 2020 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | 3 | 3 | |||||||||||||
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.) | 419 | 49 | 468 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii) | N/A | N/A | 1,108 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii | 419 | 49 | 468 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c) | 492 | — | 492 | ||||||||||||||
Deferred tax assets admitted | $ | 911 | 52 | 963 |
49 of 67 |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | 44 | 44 | |||||||||||||
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.) | 37 | (49) | (12) | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii) | N/A | N/A | 425 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii | 37 | (49) | (12) | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c) | 44 | — | 44 | ||||||||||||||
Deferred tax assets admitted | $ | 81 | (5) | 76 |
December 31 | ||||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||||
Ratio percentage used to determine recovery period and threshold limitation amount | 1,082 | % | 705 | % | 377 | % | ||||||||||||||||||||
Amount of adjusted capital and surplus used to determine recovery period threshold limitation | $ | 10,218 | 7,386 | 2,832 |
December 31, 2021 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Net admitted adjusted gross DTAs - (percentage of total net admitted adjusted gross DTAs) | — | % | — | % | — | % |
December 31, 2020 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Net admitted adjusted gross DTAs - (percentage of total net admitted adjusted gross DTAs) | — | % | 93.7 | % | 93.7 | % |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Net admitted adjusted gross DTAs - (percentage of total net admitted adjusted gross DTAs) | — | % | (93.7) | % | (93.7) | % |
50 of 67 |
December 31 | 2021-2020 Change | 2020-2019 Change | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Current year federal tax expense (benefit) - ordinary income | $ | 1,091 | 18 | 773 | 1,073 | (755) | |||||||||||||||||||||||
Current year foreign tax expense (benefit) - ordinary income | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 1,091 | 18 | 773 | 1,073 | (755) | ||||||||||||||||||||||||
Current year tax expense - net realized capital gains (losses) | 249 | — | (11) | 249 | 11 | ||||||||||||||||||||||||
Federal and foreign income taxes incurred | $ | 1,340 | 18 | 762 | 1,322 | (744) |
December 31 | ||||||||||||||||||||
Deferred tax assets | 2021 | 2020 | Change | |||||||||||||||||
Ordinary: | ||||||||||||||||||||
Unrealized losses | $ | 14 | — | 14 | ||||||||||||||||
Deferred acquisition costs | 186 | 169 | 17 | |||||||||||||||||
Expense accruals | 82 | 63 | 19 | |||||||||||||||||
Policyholder reserves | 701 | 666 | 35 | |||||||||||||||||
Fixed assets | — | — | — | |||||||||||||||||
Nonadmitted assets | 15 | 13 | 2 | |||||||||||||||||
Subtotal | 998 | 911 | 87 | |||||||||||||||||
Statutory valuation allowance adjustment | — | — | — | |||||||||||||||||
Nonadmitted ordinary deferred tax assets | (6) | — | (6) | |||||||||||||||||
Admitted ordinary tax assets | 992 | 911 | 81 | |||||||||||||||||
Capital: | ||||||||||||||||||||
Impaired assets | 48 | 51 | (3) | |||||||||||||||||
Unrealized losses | — | 1 | (1) | |||||||||||||||||
Subtotal | 48 | 52 | (4) | |||||||||||||||||
Statutory valuation allowance adjustment | — | — | — | |||||||||||||||||
Nonadmitted capital deferred tax assets | — | — | — | |||||||||||||||||
Admitted capital deferred tax assets | 48 | 52 | (4) | |||||||||||||||||
Admitted deferred tax assets | $ | 1,040 | 963 | 77 |
51 of 67 |
December 31 | ||||||||||||||||||||
Deferred tax liabilities | 2021 | 2020 | Change | |||||||||||||||||
Ordinary: | ||||||||||||||||||||
Investments | $ | (53) | (54) | 1 | ||||||||||||||||
Fixed assets | (4) | (5) | 1 | |||||||||||||||||
Policyholder reserves | (356) | (445) | 89 | |||||||||||||||||
Software capitalization | (11) | (7) | (4) | |||||||||||||||||
Unrealized gains | (64) | (79) | 15 | |||||||||||||||||
Other | (48) | (94) | 46 | |||||||||||||||||
Subtotal | (536) | (684) | 148 | |||||||||||||||||
Capital: | ||||||||||||||||||||
Unrealized gains | (17) | (6) | (11) | |||||||||||||||||
Subtotal | (17) | (6) | (11) | |||||||||||||||||
Deferred tax liabilities | $ | (553) | (690) | 137 | ||||||||||||||||
Net deferred tax assets (liabilities) | $ | 487 | 273 | 214 |
December 31 | |||||||||||||||||
2021 | 2020 | Change | |||||||||||||||
Net deferred tax assets (liabilities) | $ | 493 | 273 | 220 | |||||||||||||
Statutory valuation allowance adjustment | — | — | — | ||||||||||||||
Net deferred tax assets (liabilities) after statutory valuation allowance | 493 | 273 | 220 | ||||||||||||||
Tax effect of unrealized gains (losses) | 149 | 154 | (5) | ||||||||||||||
Statutory valuation allowance adjustment allocated to unrealized gains (losses) | — | — | — | ||||||||||||||
Change in net deferred income tax | $ | 215 |
52 of 67 |
December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||||||||
Federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Amortization of IMR | (1.9) | (1.3) | (3.6) | ||||||||||||||
Dividends received deduction | (1.3) | (1.7) | (4.2) | ||||||||||||||
Nondeductible expenses | 0.1 | — | 0.9 | ||||||||||||||
Affiliated LLC income | (0.2) | (2.4) | — | ||||||||||||||
COLI | (2.4) | (1.0) | (5.5) | ||||||||||||||
Tax hedges | (6.5) | 0.2 | 65.8 | ||||||||||||||
Tax hedge reclassification | 73.7 | 6.8 | 84.7 | ||||||||||||||
Tax credits | (9.6) | (7.2) | (13.6) | ||||||||||||||
Prior period adjustments | (1.2) | (0.6) | (0.4) | ||||||||||||||
Change in deferred taxes on impairments | 0.6 | (5.0) | 3.6 | ||||||||||||||
Change in deferred taxes on nonadmitted assets | (0.4) | (0.6) | (0.7) | ||||||||||||||
Reinsurance | 83.5 | (5.5) | 19.8 | ||||||||||||||
Correction of Error | 2.0 | — | — | ||||||||||||||
NOL Carryback Benefit | — | (12.2) | — | ||||||||||||||
Tax Contingencies | 10.6 | 5.5 | — | ||||||||||||||
Realized Capital Gains Tax | 47.4 | (0.1) | — | ||||||||||||||
Other | (1.4) | — | 0.6 | ||||||||||||||
Effective tax rate | 214.0 | % | (4.1) | % | 168.4 | % | |||||||||||
Federal and foreign income taxes incurred (1) | 207.4 | % | 2.9 | % | 293.7 | % | |||||||||||
Realized Capital Gains Tax | 47.4 | (0.1) | — | ||||||||||||||
Change in net deferred tax | (40.8) | (6.9) | (125.3) | ||||||||||||||
Effective tax rate | 214.0 | % | (4.1) | % | 168.4 | % | |||||||||||
(1) Prior to 2020, tax on capital gains (losses) was excluded from federal and foreign income taxes incurred and detailed in Note 5(c). |
53 of 67 |
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 | William H. McGee & Co., Inc. | ||||
Allianz Reinsurance of America, Inc. | Allianz Reinsurance Management Services, Inc. | ||||
Allianz Technology of America, Inc. | Fireman’s Fund Insurance Company | ||||
Allianz Renewable Energy Partners of America LLC | Fireman’s Fund Indemnity Corporation | ||||
Allianz Renewable Energy Partners of America 2 LLC | National Surety Corporation | ||||
PFP Holdings, Inc. | Chicago Insurance Company | ||||
AZL PF Investments, Inc. | Interstate Fire & Casualty Company | ||||
Dresdner Kleinwort Pfandbriefe Investments II, Inc. | Associated Indemnity Corporation | ||||
Allianz Fund Investments, Inc. | American Automobile Insurance Company | ||||
Yorktown Financial Companies, Inc. | The American Insurance Company | ||||
Questar Capital Corporation | Allianz Risk Transfer, Inc. | ||||
Questar Agency, Inc. | Allianz Risk Transfer (Bermuda), Ltd. |
54 of 67 |
2021 | 2020 | 2019 | ||||||||||||||||||
Balance at January 1, net of reinsurance recoverables of $665, $654, and $574, respectively | $ | 337 | 335 | 299 | ||||||||||||||||
Incurred related to: | ||||||||||||||||||||
Current year | 189 | 139 | 143 | |||||||||||||||||
Prior years | (47) | (46) | (24) | |||||||||||||||||
Total incurred | 142 | 93 | 119 | |||||||||||||||||
Paid related to: | ||||||||||||||||||||
Current year | 10 | 7 | 7 | |||||||||||||||||
Prior years | 84 | 84 | 76 | |||||||||||||||||
Total paid | 94 | 91 | 83 | |||||||||||||||||
Balance at December 31, net of reinsurance recoverables of $734, $665, and $654, respectively | $ | 385 | 337 | 335 |
55 of 67 |
For the years ended December 31, | ||||||||||||||
Reduction in: | 2021 | 2020 | ||||||||||||
Aggregate reserves | $ | 16,141 | 6,636 | |||||||||||
Deposit-type contracts | 132 | 99 | ||||||||||||
Policy and contract claims | 28 | 29 |
Year ended | Direct amount | Ceded to other companies | Assumed from other companies | Net amount | ||||||||||||||||||||||
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 | |||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Life insurance in-force | $ | 53,399 | 34,345 | 54 | 19,108 | |||||||||||||||||||||
Premiums: | ||||||||||||||||||||||||||
Life | 1,200 | 88 | 1 | 1,113 | ||||||||||||||||||||||
Annuities | 9,473 | 398 | — | 9,075 | ||||||||||||||||||||||
Accident and health | 170 | 68 | 56 | 158 | ||||||||||||||||||||||
Total premiums | $ | 10,843 | 554 | 57 | 10,346 | |||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Life insurance in-force | $ | 45,817 | 30,060 | 58 | 15,815 | |||||||||||||||||||||
Premiums: | ||||||||||||||||||||||||||
Life | 989 | 88 | 1 | 902 | ||||||||||||||||||||||
Annuities | 12,135 | 387 | — | 11,748 | ||||||||||||||||||||||
Accident and health | 172 | 70 | 53 | 155 | ||||||||||||||||||||||
Total premiums | $ | 13,296 | 545 | 54 | 12,805 |
56 of 67 |
57 of 67 |
2021 | Percentage of total | 2020 | Percentage of total | |||||||||||||||||||||||
Subject to discretionary withdrawal: | ||||||||||||||||||||||||||
With market value adjustment | $ | 48,992 | 33 | % | $ | 43,198 | 31 | % | ||||||||||||||||||
At book value less current surrender charges of 5% or more | 37,866 | 25 | 36,364 | 26 | ||||||||||||||||||||||
At market value | 20,998 | 13 | 21,361 | 14 | ||||||||||||||||||||||
Total with adjustment or at market value | 107,856 | 71 | 100,923 | 71 | ||||||||||||||||||||||
At book value without adjustment (minimal or no charge or adjustment) | 33,967 | 23 | 30,641 | 22 | ||||||||||||||||||||||
Not subject to discretionary withdrawal | 7,380 | 5 | 8,133 | 6 | ||||||||||||||||||||||
Total gross | 149,203 | 100 | % | 139,697 | 100 | % | ||||||||||||||||||||
Reinsurance ceded | 11,960 | 2,523 | ||||||||||||||||||||||||
Total net | $ | 137,243 | $ | 137,174 | ||||||||||||||||||||||
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: | $ | 2,798 | $ | 6,776 |
Reconciliation of total annuity actuarial reserves and deposit fund liabilities: | 2021 | 2020 | ||||||||||||
Life, Accident and Health Annual Statement: | ||||||||||||||
Annuities, net (excluding supplementary contracts with life contingencies) | $ | 88,413 | 95,185 | |||||||||||
Supplemental contracts with life contingencies, net | 2,083 | 2,091 | ||||||||||||
Deposit-type contracts | 4,577 | 4,749 | ||||||||||||
Subtotal | 95,073 | 102,025 | ||||||||||||
Separate Accounts Annual Statement: | ||||||||||||||
Annuities, net (excluding supplementary contracts with life contingencies) | 42,155 | 35,137 | ||||||||||||
Supplemental contracts with life contingencies, net | 15 | 11 | ||||||||||||
Subtotal | 42,170 | 35,148 | ||||||||||||
Total annuity actuarial reserves and deposit fund liabilities | $ | 137,243 | 137,174 |
58 of 67 |
2021 | |||||||||||
General Account | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Universal life | $ | 817 | 816 | 822 | |||||||
Universal life with secondary guarantees | 59 | 53 | 144 | ||||||||
Indexed life | 6,871 | 5,945 | 5,989 | ||||||||
Other permanent cash value life insurance | 105 | 105 | 105 | ||||||||
Variable universal life | 2 | 2 | 2 | ||||||||
Not subject to discretionary withdrawal or no cash values: | |||||||||||
Term policies without cash value | XXX | XXX | 199 | ||||||||
Disability, active lives | XXX | XXX | 49 | ||||||||
Disability, disabled lives | XXX | XXX | 6 | ||||||||
Miscellaneous reserves | XXX | XXX | 46 | ||||||||
Total gross | 7,854 | 6,921 | 7,362 | ||||||||
Reinsurance ceded | 616 | 616 | 878 | ||||||||
Total net | $ | 7,238 | 6,305 | 6,484 | |||||||
2020 | |||||||||||
General Account | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Universal life | $ | 845 | 844 | 851 | |||||||
Universal life with secondary guarantees | 61 | 54 | 158 | ||||||||
Indexed life | 5,458 | 4,701 | 4,738 | ||||||||
Other permanent cash value life insurance | 115 | 115 | 115 | ||||||||
Variable universal life | 3 | 3 | 3 | ||||||||
Not subject to discretionary withdrawal or no cash values: | |||||||||||
Term policies without cash value | XXX | XXX | 204 | ||||||||
Disability, active lives | XXX | XXX | 48 | ||||||||
Disability, disabled lives | XXX | XXX | 6 | ||||||||
Miscellaneous reserves | XXX | XXX | 54 | ||||||||
Total gross | 6,482 | 5,717 | 6,177 | ||||||||
Reinsurance ceded | 645 | 644 | 904 | ||||||||
Total net | $ | 5,837 | 5,073 | 5,273 | |||||||
The Company does not have any Life policies with guarantees in the separate account. | |||||||||||
2021 | |||||||||||
Separate Account Nonguaranteed | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Variable universal life | $ | 21 | 21 | 21 | |||||||
Total gross | 21 | 21 | 21 |
59 of 67 |
Reinsurance ceded | — | — | — | ||||||||
Total net | $ | 21 | 21 | 21 | |||||||
2020 | |||||||||||
Separate Account Nonguaranteed | Account Value | Cash Value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Variable universal life | $ | 19 | 18 | 18 | |||||||
Total gross | 19 | 18 | 18 | ||||||||
Reinsurance ceded | — | — | — | ||||||||
Total net | $ | 19 | 18 | 18 |
Reconciliation of total life actuarial reserves: | 2021 | 2020 | ||||||
Life, Accident, and Health Annual Statement: | ||||||||
Life insurance, net | $ | 6,412 | $ | 5,210 | ||||
Disability, active lives, net | 47 | 47 | ||||||
Disability, disabled lives, net | 1 | 1 | ||||||
Miscellaneous reserves, net | 24 | 14 | ||||||
Subtotal | 6,484 | 5,273 | ||||||
Separate Accounts Annual Statement: | ||||||||
Life insurance, net | 21 | 18 | ||||||
Subtotal | 21 | 18 | ||||||
Total life actuarial reserves | $ | 6,505 | $ | 5,291 |
2021 | 2020 | ||||||||||
Premiums, considerations, or deposits | 5,927 | 4,149 | |||||||||
Reserves for accounts with assets at fair value | 21,209 | 21,574 | |||||||||
Reserves for accounts with assets at amortized cost | 20,982 | 13,592 | |||||||||
Total reserves | 42,191 | 35,166 | |||||||||
By withdrawal characteristics: | |||||||||||
At book value without MV adjustment and with current surrender charge of 5% or more | 18,665 | 12,643 | |||||||||
At fair value | 21,166 | 21,535 | |||||||||
At book value without MV adjustment and with current surrender charge of less than 5% | 2,326 | 959 | |||||||||
Subtotal | 42,157 | 35,137 | |||||||||
Not subject to discretionary withdrawal | 34 | 29 | |||||||||
Total | 42,191 | 35,166 |
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2021 | 2020 | |||||||||||||||||||
Product/transaction | Legally insulated | Not legally insulated | Legally insulated | Not legally insulated | ||||||||||||||||
Variable Annuities | $ | 21,158 | — | 21,602 | — | |||||||||||||||
Variable Life | 21 | — | 19 | — | ||||||||||||||||
Variable Annuities (Non-Unitized Insulated) | 524 | — | 998 | — | ||||||||||||||||
Variable Annuities (Non-Unitized Non-Insulated) | — | 26,548 | — | 23,244 | ||||||||||||||||
Variable Annuities (MN MVA) | — | 28 | — | 38 | ||||||||||||||||
Total | $ | 21,703 | 26,576 | 22,619 | 23,282 |
2021 | 2020 | 2019 | |||||||||||||||
Transfers as reported in the Summary of Operations of the Separate Accounts Annual Statement: | |||||||||||||||||
Transfers to separate accounts | $ | 5,927 | 4,149 | 1,277 | |||||||||||||
Transfers from separate accounts | (3,507) | (2,689) | 3,975 | ||||||||||||||
Net transfers to separate accounts | 2,420 | 1,460 | 5,252 | ||||||||||||||
Reconciling adjustments: | |||||||||||||||||
Other adjustments | 4 | — | 2 | ||||||||||||||
Transfers as reported in the Statutory Statements of Operations | $ | 2,424 | 1,460 | 5,254 |
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2021 | 2020 | 2019 | ||||||||||||||||||
Allianz Investment Management, LLC | $ | 41 | 51 | 56 | ||||||||||||||||
ALFS | — | — | 2 | |||||||||||||||||
AZL PF Investments, Inc. | — | 50 | — | |||||||||||||||||
Allianz Individual Insurance Group, LLC (AIIG) | 4 | — | — | |||||||||||||||||
Yorktown | — | — | 9 | |||||||||||||||||
Total | $ | 45 | 101 | 67 |
2021 | 2020 | 2019 | ||||||||||||||||||
Yorktown | $ | — | — | 1 | ||||||||||||||||
Allianz Investment Management U.S. LLC (AIM US) | 8 | 1 | — | |||||||||||||||||
ALFS | 48 | 20 | 8 | |||||||||||||||||
ASI | $ | 66 | $ | — | $ | — | ||||||||||||||
Total | $ | 122 | 21 | 9 |
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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 |
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To send an application, a check for an additional Purchase Payment, or for general customer service, please mail to the appropriate address as follows: |
REGULAR MAIL |
Allianz Life Insurance Company of North America P.O. Box 59060 Minneapolis, MN 55459-0060 |
OVERNIGHT, CERTIFIED, OR REGISTERED MAIL |
Allianz Life Insurance Company of North America 5701 Golden Hills Drive Golden Valley, MN 55416-1297 |
Checks sent to the wrong address for applications or additional Purchase Payments are forwarded to the 5701 Golden Hills Drive address listed above, which may delay processing. |
Securities and Exchange Commission Registration Fee | $ |
-------------- | |
Estimated Printing and Filing Costs: | $ 30,000 |
-------------- | |
Estimated Accounting Fees: | $ 75,000 |
--------------- | |
Estimated Legal Fees: | $ |
--------------- | |
Estimated Miscellaneous Fees: | $ N/A |
--------------- |
The Bylaws of the Insurance Company provide: | ||
ARTICLE XI. INDEMNIFICATION OF DIRECTORS, OFFICERS AND EMPLOYEES | ||
SECTION 1. RIGHT TO INDEMNIFICATION: | ||
(a) | Subject to the conditions of this Article and any conditions or limitations imposed by applicable law, the Corporation shall indemnify any employee, director or officer of the Corporation (an "Indemnified Person") who was, is, or in the sole opinion of the Corporation, may reasonably become a party to or otherwise involved in any Proceeding by reason of the fact that such Indemnified Person is or was: | |
(i) | a director of the Corporation; or | |
(ii) | acting in the course and scope of his or her duties as an officer or employee of the Corporation; or | |
(iii) | rendering Professional Services at the request of and for the benefit of the Corporation; or | |
(iv) | serving at the request of the Corporation as an officer, director, fiduciary or member of another corporation, association, committee, partnership, joint venture, trust, employee benefit plan or other enterprise (an "Outside Organization"). | |
(b) | Notwithstanding the foregoing, no officer, director or employee shall be indemnified pursuant to these bylaws under the following circumstances: | |
(i) | in connection with a Proceeding initiated by such person, in his or her own personal capacity, unless such initiation was authorized by the Board of Directors; | |
(ii) | if a court of competent jurisdiction finally determines that any indemnification hereunder is unlawful; | |
(iii) | for acts or omissions involving intentional misconduct or knowing and culpable violation of law; | |
(iv) | for acts or omissions that the Indemnified Person believes to be contrary to the best interests of the Corporation or its shareholders or that involve the absence of good faith on the part of the Indemnified Person; | |
(v) | for any transaction for which the Indemnified Person derived an improper personal benefit; | |
(vi) | for acts or omissions that show a reckless disregard for the Indemnified Person's duty to the Corporation or its shareholders in circumstances in which the Indemnified Person was aware or should have been aware, in the ordinary course of performing the Indemnified Person's duties, of the risk of serious injury to the Corporation or its shareholders; | |
(vii) | for acts or omissions that constitute an unexcused pattern of inattention that amounts to an abdication of the Indemnified Person's duties to the Corporation or its shareholders; | |
(viii) | in circumstances where indemnification is prohibited by applicable law; | |
(ix) | in the case of service as an officer, director, fiduciary or member of an Outside Organization, where the Indemnified Person was aware or should have been aware that the conduct in question was outside the scope of the assignment as contemplated by the Corporation. |
SECTION 2. SCOPE OF INDEMNIFICATION: | |
(a) | Indemnification provided pursuant to Section 1(a)(iv) shall be secondary and subordinate to indemnification or insurance provided to an Indemnified Person by an Outside Organization or other source, if any. |
(b) | Indemnification shall apply to all reasonable expenses, liability and losses, actually incurred or suffered by an Indemnified Person in connection with a Proceeding, including without limitation, attorneys' fees and any expenses of establishing a right to indemnification or advancement under this article, judgments, fines, ERISA excise taxes or penalties, amounts paid or to be paid in settlement and all interest, assessments and other charges paid or payable in connection with or in respect of such expense, liability and loss. |
(c) | Such indemnification shall continue as to any Indemnified Person who has ceased to be an employee, director or officer of the Corporation and shall inure to the benefit of his or her heirs, estate, executors and administrators. |
SECTION 3. DEFINITIONS: | |
(a) | "Corporation" for the purpose of Article XI shall mean Allianz Life Insurance Company of North America and all of its subsidiaries. |
(b) | "Proceeding" shall mean any threatened, pending, or completed action, suit or proceeding whether civil, criminal, administrative, investigative or otherwise, including actions by or in the right of the Corporation to procure a judgment in its favor. |
(c) | "Professional Services" shall mean services rendered pursuant to (i) a professional actuarial designation, (ii) a license to engage in the practice of law issued by a State Bar Institution or (iii) a Certified Public Accountant designation issued by the American Institute of Certified Public Accountants. |
Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted for directors and officers or controlling persons of the Insurance Company pursuant to the foregoing, or otherwise, the Insurance Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Insurance Company of expenses incurred or paid by a director, officer or controlling person of the Insurance Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. |
1.(a) | Principal Underwriter Agreement by and between North American Life and Casualty Company on behalf of NALAC Financial Plans, Inc. dated September 14, 1988 incorporated by reference as exhibit EX-99.B3.a. from Pre-Effective Amendment No.1 to Form N-4 (File Nos. 333-06709 and 811-05618), electronically filed on December 13, 1996. (North American Life and Casualty Company is the predecessor to Allianz Life Insurance Company of North America. NALAC Financial Plans, Inc., is the predecessor to USAllianz Investor Services, LLC, which is the predecessor to Allianz Life Financial Services, LLC.) |
(b) | Broker-Dealer Agreement (amended and restated) between Allianz Life Insurance Company of North America and Allianz Life Financial Services, LLC, dated June 1, 2010 incorporated by reference as exhibit EX-99B3b. from Pre-Effective Amendment No. 1 to Form N-4 (File Nos. 333-166408 and 811-05618), electronically filed on September 24, 2010. |
(c) | The current specimen of the selling agreement between Allianz Life Financial Services, LLC, the principal underwriter for the Contracts, and retail brokers which offer and sell the Contracts to the public is incorporated by reference as exhibit EX-99.B3.b. from the initial filing on Form N-4 (File Nos. 333-134267 and 811-05618), electronically filed on May 19, 2006.The underwriter has executed versions of the agreement with approximately 2,100 retail brokers. |
2. | Not applicable |
3.(a) | Articles of Incorporation, as amended and restated August 1, 2006, of Allianz Life Insurance Company of North America, filed on January 3, 2013 as Exhibit 3(a) to Registrant's initial registration on Form S-1 (File No. 333-185864), is incorporated by reference. |
(b) | Bylaws, as amended and restated August 1, 2006, of Allianz Life Insurance Company of North America, filed on January 3, 2013 as Exhibit 3(b) to Registrant's initial registration on Form S-1 (File No. 333-185864), is incorporated by reference. |
4.(a)(i) | Individual Variable Annuity | ||
(ii) | Eligible Person Contract Amendment, USA-2034, incorporated by reference as Exhibit 4(a)(ii) to Registrant's initial registration on Form S-1 (File No. 333-230901), filed on April 16, 2019. | ||
(b)(i) | Contract Schedule | ||
(ii) | Index Options Contract Schedule Page | ||
(iii) | Index Options Contract Schedule | ||
Application for Individual Variable Annuity Contract – | |||
(d)(i) | Index Performance Strategy | ||
(ii) | Index Performance Strategy Rider III – S40904, incorporated by reference as Exhibit 4(d)(ii) from Post-Effective Amendment No. 1 to Registrant's Form S-1 (File No. | ||
(iii) | Inforce Index Performance Strategy Rider III – | ||
(e) | Index Protection Strategy Crediting | ||
(f) | Index Guard Strategy Crediting Rider-S40889-01-IAI, incorporated by reference as Exhibit 4(f) from Pre-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-222817), electronically filed on May 7, 2018. | ||
(g) | Index Precision Strategy Crediting Rider, S40891-IAI, incorporated by reference as Exhibit 4(g) from Pre-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-222817), electronically filed on May 7, 2018. | ||
(h)(i) | Income Benefit Rider, S40901-IAI, and schedule page, S40902-IAI, incorporated by reference as Exhibit 4(h) from Pre-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-222817), electronically filed on May 7, 2018. | ||
(ii) | Income Benefit Rider S40901-01-IAI and Income Benefit Rider Amendment, LE40901-IAI, incorporated by reference as Exhibit 4(h)(ii) to Registrant's initial registration on Form S-1 (File No. 333-230901), filed on April 16, 2019. | ||
(iii) | Income Benefit Rider Amendment, LE40901-GUAR, incorporated by reference as Exhibit 4(h)(ii) to Registrant's initial registration on Form S-1 (File No. 333-230901), filed on April 16, 2019. | ||
(i) | Traditional Death Benefit Rider-S40880 incorporated by reference as Exhibit 4(f) from Pre-Effective Amendment No. 1 to Registrant's Form S-1 (File No. 333-185864), electronically filed on April 17, 2013. | ||
(j) | |||
(k) | Inherited IRA/Roth IRA Endorsement-S40713 incorporated by reference as exhibit EX-99.B4.q. from Pre-Effective Amendment No. 1 to Registrant's Form N-4 (File Nos. 333-134267 and 811-05618), electronically filed on September 25, 2006. | ||
(l) | Roth IRA Endorsement-S40342 incorporated by reference as exhibit EX-99.B4.l. from Pre-Effective Amendment No. 1 to Registrant's Form N-4 (File Nos. 333-134267 and 811-05618), electronically filed on September 25, 2006. | ||
(m) | IRA Endorsement-S40014 incorporated by reference as exhibit EX-99.B4.g. from Pre-Effective Amendment No.1 to Registrant's Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December | ||
24. | (a) | Board Resolution, effective December 11, 2012, of the Board of Directors of Allianz Life Insurance Company of North America, filed on January 3, 2013 as Exhibit 24(b) to Registrant's |
(b) Form of Board Resolution of the Board of Directors of Allianz Life Insurance Company of North America, effective April 14, 2014, filed on April 14, 2014 as Exhibit 24(d) to Registrant's Post-Effective Amendment No. 2 to Form S-1 (File No. 333-185864), is incorporated by reference. |
| (c)* | Powers of Attorney, |
99. | (a) | Alternative Minimum Value Exhibit - IXA-032 (05/2020), filed on April 9, 2020 as Exhibit 99(a) to Registrant’s Initial Registration on Form S-1 (File No. |
| (b) | Appendix B Exhibit – Daily Adjustment Calculation - IXA-010b (05/2021), filed ), filed on April 16, 2021, as Exhibit 99(b) to Registrant's initial registration on Form S-1 (File No. |
| (c) |
Transition Representation Letter |
107.* | Filing Fee Table, filed herewith. |
(1) | To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: | |
(i) | To include any prospectus required by section 10(a)(3) of the Securities Act of 1933; | |
(ii) | To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement. | |
(iii) | To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement. | |
(2) | That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. | |
(3) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. | |
(4) | That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. | |
(5) | That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: | |
(i) | Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; | |
(ii) | Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; | |
(iii) | The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and | |
(iv) | Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. | |
(6) | Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that, in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. |
Title | ||
Jasmine Jirele* | Director, President & Chief Executive Officer | |
Andreas G. Wimmer* | Board Chair | |
Walter R. White* | Director | |
Udo Frank* | Director | |
William E. Gaumond* | Director, Senior Vice President, Chief Financial Officer and Treasurer (principal accounting officer) | |
Kevin E. Walker* Anna Sophie Herken* | Director Director | |
Howard E. Woolley* | Director |
Exhibit | Description of Exhibit |
5 | Opinion of Counsel |
23(a) | |
24(c) | Powers of Attorney |
107 | Filing Fee Table |