Minnesota (State or other jurisdiction of incorporation or organization) | 6311 (Primary Standard Industrial Classification Code Number) | 41-1366075 (I.R.S. Employer Identification No.) |
Calculation of Registration Fee | ||||
Title of each class of securities to be registered | Amount to be registered pursant to this Registration Statement | Proposed maximum offering price per unit | Proposed maximum aggregate offering price including previously registered securities | Amount of aggregate registration fee, including fee paid for previously registered securities |
Individual Flexible Purchase Payment Index-Linked Deferred Annuity Contract | $ | NA(2) | $ | $ |
The information in this prospectus is not complete and may be changed. We cannot sell Allianz Index Advantage Income ADVSM Variable Annuity pursuant to this prospectus until the Registration Statement containing this prospectus filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell the Contract and is not soliciting an offer to buy the Contract in any state where the offer or sale is not permitted. |
Standard Annuity Features | Available Investment Options | |
• Five fixed annuitization options (Annuity Options)• Free withdrawal privilege during the (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, cannot be removed, and has an additional rider fee. • 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. |
The risk of loss can become greater in the case of an early withdrawal due to |
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 |
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 | ||
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 0.50% |
Index Protection Strategy with Cap | • 100% – You will never receive a negative Credit | • Caps (the upper limit on positive Index performance) – Caps cannot be less than 0.50% |
Index Precision Strategy | • Buffers (the amount of negative Index performance we absorb over the duration of a Term) – Buffers cannot be less than 5% | • PrecisionRates (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 cannot be less than -25% | • Caps – Caps cannot be less than 3% |
Index Performance Strategy | • Buffers – Buffers cannot be less than 5% | • 1-year Term: Caps – Caps cannot be less than |
• 3-year and 6-year Terms: Caps and Participation Rates (a percentage of Index performance) – 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 |
Purchasing a Contract: Key Features at a Glance | |
Issue Age (see section 3) | On the date we issue the Contract (the Issue Date), all Owners and the Annuitant must be either: • age 80 or younger, or • age 75 or younger if you select the Maximum Anniversary Value Death Benefit. The Owner is the person or entity designated at issue who may exercise all Contract rights. The Annuitant is the individual upon whose life we base Annuity Payments. |
Purchase Payment Standards (see section 3) | • • • • We do not accept additional Purchase Payments during the Income Period or the Annuity Phase. |
Purchasing a Contract: Key Features at a Glance | |
Allocation of Purchase Payments and Contract Value Transfers (see section 3) | You can allocate your Purchase Payments to any or all of the • As a result, we hold Purchase Payments • On each Index Option’s Term End Date, • We do not allow assets to move into an established 3-year or 6-year Term Index Option until the Term End Date. • Purchase Payments you allocate to an Index Option must be held in the Index Option for the full Term before they can receive a Credit. Therefore, additional Purchase Payments we receive after the Index Effective Date that you allocate to a 1-year Term Index Option are not eligible to receive a Credit until the second Index Anniversary after we receive them, or the fourth Index Anniversary after we receive them for allocations to a 3-year Term Index Option, or the seventh Index Anniversary after we receive them for allocations to a 6-year Term Index Option. |
Daily Adjustment (see “What is the Daily Adjustment?” in this Summary and section 5) | The Daily Adjustment is how we calculate Index Option Values on days other than the Term Start Date or Term End |
Performance Lock (see “What is the Performance Lock?” in this Summary and section 5) | A feature that allows you to capture the current Index Option Value during the |
Market Value Adjustment (MVA) (see section 5) | • A positive or negative adjustment that applies if within seven Index Years of the establishment of an Annual Contribution Amount (the amount that is subject to an MVA) you take a withdrawal (including an Excess Withdrawal), begin Annuity Payments, or if we pay a death benefit. An Excess Withdrawal is the amount of any withdrawal taken during an Income Benefit Year that causes the total amount withdrawn in that year to exceed the annual maximum Income Payment. An Income Benefit Year is a period of twelve months beginning on the Income Benefit Date or any subsequent Income Benefit Anniversary. • We do not apply an MVA to MVA-Free Withdrawals, to amounts we withdraw for Contract fees and expenses, or to investment advisory fees you authorize your Financial Professional’s firm to receive from the Contract. MVA-Free Withdrawals include Income Payments, withdrawals you take under the free withdrawal privilege, and payments you take under our minimum distribution program. • If you take a full withdrawal, begin Annuity Payments, or if we pay a death benefit the maximum total positive or negative MVA is 10% of Contract Value. On a partial withdrawal, we limit the maximum total positive or negative MVA to 10% of the amount withdrawn. |
Purchasing a Contract: Key Features at a Glance | |
Product and Rider Fees (see the Fee Tables and section 6) | Accrued daily and deducted on each Quarterly Contract • Product fee is • Rider fee is 0.70% for the Income Benefit. • Rider fee is 0.20% for the Maximum Anniversary Value Death Benefit.If you select this benefit, you will pay |
Other Contract Fees and Expenses (see the Fee Tables and section 6) | • • |
You can withdraw your | |
Free Withdrawal Privilege (see section 7) | Allows you to withdraw 10% of your total • Any unused free withdrawal privilege in one • If you withdraw more than the free withdrawal privilege we will • Not available if you take a full withdrawal of your |
Minimum Distribution (see section 7) | If you own an Individual Retirement Annuity (IRA) • reduce the amount available under the free withdrawal privilege before the Income Period, but • are not subject to |
Annuity Payments (see section 8) | 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. • We offer five Annuity Options that provide payments for a guaranteed period, life, life with a guaranteed period, joint and • We base Annuity Payments on the greater of your Contract Value or Cash Value, the Annuity Option you select, and the lifetime and age of the Annuitant(s). • For an individually owned Contract, Annuity Payments can be either single or joint. |
Income Benefit (see “How Does the Income Benefit Work?” later in this Summary and section 9) | The Income Benefit (0.70% rider fee) is automatically included in your Contract. It provides guaranteed lifetime Income Payments based on a percentage of your Contract Value. • Once the Income Payment waiting period has expired, Income Payments can begin as early as age 50 or as late as age 100. • Unlike Annuity Payments, the Income Benefit allows access to your Contract Value and death benefit for a period of time after Income Payments begin. • Once Income Payments begin your Crediting Methods are limited to the Index Protection Strategy with DPSC and Index Protection Strategy with Cap. • The Income Benefit also includes the Income Multiplier Benefit for no additional charge, which can increase the annual maximum Income Payment after the required wait period to help pay for care if you should need it. For information on the terms used to determine your Income Payments, please see the Income Benefit Supplement. |
Purchasing a Contract: Key Features at a Glance | |
Death Benefit (see section | When you purchase the Contract you select either the Traditional Death Benefit (no additional fee) or the Maximum Anniversary Value Death Benefit (0.20% rider fee). In either case, the death benefit is paid upon the first death of any Determining Life during the Accumulation Phase. •���We establish the Determining Lives at Contract issue and they generally do not change unless there is a change of ownership due to divorce, marriage, or establishment of a Trust. • The Determining Life (or Lives) is either the Owner(s) or the Annuitant if the Owner is a • total Purchase Payments adjusted for withdrawals if you select the Traditional Death Benefit, or • the Maximum Anniversary Value (the highest Contract Value on any Index Anniversary before age 91, adjusted for subsequent Purchase Payments and withdrawals) if you select the Maximum Anniversary Value Death Benefit. |
• Withdrawals (including Income Payments) reduce your Guaranteed Death Benefit Value proportionately, which means this value may be reduced by more than the amount withdrawn. • The Maximum Anniversary Value Death Benefit cannot be less than the Traditional Death Benefit, but they can be equal. • If you change Owner(s) the death benefit may be reduced to Contract Value. | |
Material Contract Variations (see Appendix | The product or certain product features may not currently be available in all states or all Contracts, may vary in your state (such as the free look), or may not be available from all selling firms or from all Financial Professionals. Your Financial Professional can also provide information regarding availability of |
Customer Service (see the last page of this prospectus) | If you need customer service (for Contract changes, information on Contract Values, requesting a withdrawal or transfer, changing your allocation instructions, etc.) please contact our Service Center at (800) 624-0197. Our Service Center is the area of our company that issues Contracts and provides Contract maintenance and routine customer service. You can also contact us by: • mail at Allianz Life Insurance Company of North America, P.O. Box 561, Minneapolis, MN 55440-0561, or • email at Contact.Us@allianzlife.com. |
• | 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 Buffer, the Performance Credit is zero. We absorb any loss up to the Buffer. |
– | greater than the Buffer, the negative Performance Credit is equal to the negative Index Return in excess of the Buffer. You participate in any losses beyond the 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. |
• | If the Index Return is negative, the negative Performance Credit is equal to the negative Index Return down to the Floor. You participate in any losses down to the Floor. We absorb any negative Index Return beyond the Floor. |
– | the Index Return up to the Cap for a 1-year Term. |
– | |
Index Return multiplied by the Participation Rate, up to the Cap for a 3-year or 6-year |
• | 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 Buffer, the Performance Credit is zero. We absorb any loss up to the 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 Buffer, the negative Performance Credit is equal to the negative Index Return in excess of the Buffer. You participate in any losses beyond the 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 more or less than what is available with the Index Performance Strategy depending on Buffers. • Buffer absorbs a percentage of loss, but you receive a negative Performance Credit for losses greater than the Buffer. • Potential for large losses in any Term. • More sensitive to large negative market movements because small 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 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 Floor. • Protection from significant losses. • More sensitive to smaller negative market movements that persist over time because the 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. Protection may be more or less than what is available with the Index Precision Strategy depending on Buffers. • Buffers may be different between 1-year, 3-year, and 6-year Terms. Buffers can also be different between Index Options with the same Term Length. • Buffer absorbs a percentage of loss, but you receive a negative Performance Credit for losses greater than the Buffer. • 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. |
Index Protection Strategy with Cap | • Growth opportunity limited by the Caps. • May perform best in periods of small positive market movements. • Generally more growth opportunity than the Index Protection Strategy with DPSC, but less than the Index Precision Strategy, Index Guard Strategy, and Index Performance Strategy. • Caps will generally be greater than DPSCs, but less than the 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. • 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. • 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. Your actual Buffers cannot change once they are established. • Precision Rates are subject to a |
Index Guard Strategy | • Renewal Caps for existing Contracts can change on each Term Start Date. • 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. Your actual Floors cannot change once they are established. • Caps are subject to a |
Index Performance Strategy | • Renewal Caps and/or Participation Rates for existing Contracts can change on each Term Start Date. • 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. Your actual Buffers cannot change once they are established. • 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, if we set the Buffer at 5% we would absorb the first -5% of Index Return and you could lose up to 95% 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 Floor. For example, if we set the Floor at -25%, your maximum loss would be limited to -25% of the Index Option Value due to negative Index Returns. |
• The minimum Buffer and Floor are the least amount of protection that you could receive from negative Index Returns for any Index Option with the Index Precision Strategy, Index Guard Strategy, or Index Performance Strategy. |
• 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 |
• Buffers, Floors, 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 and 3-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. |
• 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. |
• 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 in |
– 13% initial rate for new Contracts issued in |
– 14% renewal rate for existing Contracts issued in |
– 12% renewal rate for existing Contracts issued in |
• | The Contract Value is the sum of your Variable Account Value and Index Option Values. Contract Value reflects any previously deducted Contract fees and expenses, but does not reflect Contract fees and expenses that we would apply on liquidation. The |
• | Your Variable Account Value is the |
• | Your total Index Option Value is the sum of the values in each of your selected Index Options. Each Index Option Value includes any Credits from previous Term End Dates and the deduction of any previously assessed contract maintenance charge, product fee, rider fees, and MVA. Amounts removed from the Index Options during the Term for withdrawals and Contract expenses do not receive a Credit on the Term End Date, but the amount remaining does receive a Credit subject to the applicable Buffer, Floor, DPSC, Precision Rate, Cap, and/or Participation Rate. |
– | On each Business Day during the Term other than the Term Start Date or Term End Date, we calculate the current Index Option Value |
(i) | any Index gains during the Term subject to the applicable DPSC, Precision Rate, Cap, and/or Participation Rate, |
(ii) | either any Index losses greater than the Buffer or Index losses down to the Floor (not applicable to the Index Protection Strategy with DPSC or the Index Protection Strategy with Cap), 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 www.allianzlife.com/indexincomeadvrates. |
• Income Payments are based on Contract Value, not a guaranteed value. Decreases in Contract Value due to negative Index performance during the Accumulation Phase up to and including the Income Benefit Date, deductions for Contract fees and expenses, and withdrawals, also decrease the Income Payment amount available to you. |
• 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 Excess Withdrawals, 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. |
• | Excess Withdrawals reduce your annual maximum Income Payment by the percentage of Contract Value withdrawn (including any MVA) on the next Income Benefit Anniversary. |
• | You cannot make additional Purchase Payments. 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, and any Contract expenses we deduct. If your Contract includes the Maximum Anniversary Value Death Benefit, this also reduces the likelihood of locking in investment gains to your Guaranteed Death Benefit Value. |
• | Each Income Payment and any Excess Withdrawal also reduces your Guaranteed Death Benefit Value by the percentage of Contract Value withdrawn (including any MVA), which means this value may be reduced by more than the amount withdrawn. |
• | 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. |
• | If you exercise the Income Multiplier Benefit, we will increase your annual maximum Income Payment for the remainder of that Income Benefit Year and the next year. To continue receiving this increase each Income Benefit Year you must reestablish eligibility. Any increase to your Income Payments as a result of this benefit will more rapidly reduce your Guaranteed Death Benefit Value. |
• | 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. If you exercised the Income Multiplier Benefit it will also end on the Income Benefit Anniversary that occurs on or immediately after your Contract Value reduces to zero, and although you receive the maximum available Income Payment, it will be less than the amount you previously received under the Income Multiplier Benefit. |
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 |
• | 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, 2020 | |||||||||
S&P 500® Index | Nasdaq-100® Index | Russell 2000® Index | EURO STOXX 50® | iShares® MSCI Emerging Markets ETF | |||||
Returns without dividends | 12.15% | 20.28% | 10.65% | 3.22% | 2.27% | ||||
Returns with dividends | 14.45% | 21.66% | 12.17% | 7.09% | 4.38% |
• | 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 |
• | 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 |
• | 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, |
• | 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 |
• | we determine in our sole discretion that the substitution is necessary. |
• | 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, economic uncertainties have arisen which could negatively impact Allianz Life’s net income and surplus. The extent to which the COVID-19 pandemic impacts our business (including our ability to timely process applications or claims), net income, and surplus, as well as our capital and liquidity position, will depend on future developments, which are highly uncertain and cannot be estimated, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. |
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% |
Premium Tax | 3.5% |
(as a percentage of each Purchase Payment) |
Contract Maintenance Charge | $50 |
(per Contract per year) |
(1) | |
Not currently deducted, but we reserve the right to do so in the future. This is the maximum charge we could deduct if we exercise this right, as discussed in section 6, Expenses – Premium Tax. | |
Waived if the Contract Value is at least $100,000, as discussed in section 6, Expenses – Contract Maintenance Charge. |
Annual Contract Fees (as a percentage of the Charge Base) | |
Product Fee | |
Rider Fee for the Income Benefit | 0.70% |
Rider Fee for the optional Maximum Anniversary Value Death Benefit | 0.20% |
Total Contract Fees for Contracts with the Income Benefit and optional Maximum Anniversary Value Death Benefit |
We assess the product and rider fees during the Accumulation Phase (and Income Period, if applicable), but we do not assess the product or rider fees during the Annuity Phase. See section 6, Expenses – Annual Contract Fees: Product and Rider Fees. |
Minimum | Maximum | ||
Total annual Variable Option operating expenses (including management fees, distribution or 12b-1 fees, and other expenses) before fee waivers and expense reimbursements | 0.64% | 0.71% |
Variable Option | Management fees | Rule 12b-1 fees | Other expenses | Acquired fund fees and expenses | Total annual fund operating expenses before fee waivers and/or expense reimbursements |
BLACKROCK | |||||
AZL Government Money Market Fund | .35 | .25 | .06 | – | .66 |
ALLIANZ FUND OF FUNDS | |||||
AZL MVP Balanced Index Strategy Fund(2) | .10 | – | .04 | .57 | .71 |
AZL MVP Growth Index Strategy Fund(2) | .10 | – | .02 | .53 | .65 |
Management fees | Rule 12b-1 fees | Other expenses | Acquired fund fees and expenses | Total annual fund operating expenses before fee waivers and/or expense reimbursements | |
BLACKROCK | |||||
AZL Government Money Market Fund | .35 | .25 | .06 | – | .66 |
Total annual Variable Option operating expenses before any fee waivers or expense reimbursements of: | 1 Year | 3 Years | 5 Years | 10 Years |
0.71% (maximum Investment Option operating exp.) | $1,119 | $1,522 | $1,899 | $2,953 |
0.64% (minimum Investment Option operating exp.) | $1,112 | $1,501 | $1,864 | $2,882 |
0.66% total annual operating expenses for the AZL Government Money Market Fund before any fee waivers or expense reimbursements: | 1 Year | 3 Years | 5 Years | 10 Years |
• If you surrender your Contract (take a full withdrawal) at the end of each time period. | $232 | $716 | $1,228 | $2,649 |
• If you annuitize your Contract and begin Annuity Payments at the end of each time period. The earliest available Annuity Date (the date we begin making Annuity Payments) is two years after the Issue Date. | N/A | $716 | $1,228 | $2,649 |
• If you do not surrender your Contract. | $232 | $716 | $1,228 | $2,649 |
Total annual Variable Option operating expenses before any fee waivers or expense reimbursements of: | 1 Year | 3 Years | 5 Years | 10 Years |
0.71% (maximum Investment Option operating expense) | N/A | $822 | $1,399 | $2,953 |
0.64% (minimum Investment Option operating expense) | N/A | $801 | $1,364 | $2,882 |
Total annual Variable Option operating expenses before any fee waivers or expense reimbursements of: | 1 Year | 3 Years | 5 Years | 10 Years |
0.71% (maximum Investment Option operating expense) | $269 | $822 | $1,399 | $2,953 |
0.64% (minimum Investment Option operating expense) | $262 | $801 | $1,364 | $2,882 |
Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
AZL Government Money Market Fund | |||
12/31/2013 | N/A | 12.754 | 346.00 |
12/31/2014 | 12.754 | 12.755 | 1560.00 |
12/31/2015 | 12.755 | 12.756 | 2726.00 |
12/31/2016 | 12.756 | 12.757 | 5376.00 |
12/31/2017 | 12.757 | 12.763 | 3831.00 |
12/31/2018 | 12.763 | 12.893 | 3711.00 |
12/31/2019 | 12.893 | 13.072 | 5701.00 |
12/31/2020 | 13.072 | 13.099 | 8199.00 |
AZL MVP Balanced Index Strategy Fund | |||
12/31/2013 | N/A | 12.212 | 10.00 |
12/31/2014 | 12.212 | 12.956 | 237.00 |
12/31/2015 | 12.956 | 12.927 | 473.00 |
12/31/2016 | 12.927 | 13.782 | 537.00 |
12/31/2017 | 13.782 | 15.353 | 606.00 |
12/31/2018 | 15.353 | 14.671 | 759.00 |
12/31/2019 | 14.671 | 17.152 | 754.00 |
12/31/2020 | 17.152 | 18.178 | 767.00 |
AZL MVP Growth Index Strategy Fund | |||
12/31/2013 | N/A | 13.412 | 7.00 |
12/31/2014 | 13.412 | 14.280 | 240.00 |
12/31/2015 | 14.280 | 14.165 | 382.00 |
12/31/2016 | 14.165 | 15.128 | 468.00 |
12/31/2017 | 15.128 | 17.543 | 578.00 |
12/31/2018 | 17.543 | 16.412 | 664.00 |
12/31/2019 | 16.412 | 19.779 | 676.00 |
12/31/2020 | 19.779 | 20.715 | 721.00 |
• | The Business Day we process your request for a full withdrawal. |
• | The Business Day before the Annuity Date. |
• | the total amount of investment advisory fees cannot exceed 1.5% of the Contract Value in each Contract Year. |
• | that the investment advisory fee compensate the Financial Professional only for advice they provide to you with respect to this Contract and not for any other services or accounts, |
• | this Contract be solely liable for paying these investment advisory fees directly to your Financial Professional’s firm, and |
• | while we are deducting these fees from the Contract, you agree to not pay investment advisory fees to your Financial Professional or anyone else from any other assets. |
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 withdrawal | $ 100,000 | $ 90,000 | $ 105,000 | |||
$5,000 withdrawal | – ($5,000/ 100,000) | – ($5,000/ 100,000) | ||||
x 90,000)] | x 105,000)] | |||||
– $5,000 | = – $4,500 | = – $5,250 | ||||
After withdrawal | $ 95,000 | $ 85,500 | $ 99,750 |
Investment Advisory Fee Withdrawal That Is Not a Taxable Distribution | 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 fee deduction | $ 100,000 | $ 90,000 | $ 105,000 | |||
$1,500 fee deduction | – $1,500 | = – $0 | = – $0 | |||
After fee deduction | $ 98,500 | $ 90,000 | $ 105,000 |
• | 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 |
– | Annuity Option |
• | you remove a Joint Owner due to divorce, then we also remove that person as a Determining Life, |
• | you |
• 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 |
• NAMING AN ESTATE AS A BENEFICIARY: If an estate is the Beneficiary, the estate must be the sole primary Beneficiary, unless the Spouse is the sole primary Beneficiary. If the Spouse is the sole primary Beneficiary, then an estate can be a contingent beneficiary. |
• | 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, |
• | 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 |
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 |
• |
• | cancel your Contract during this time, we return the greater of Purchase Payments less withdrawals and less any investment advisory fees deducted from your Contract if you authorize your Financial Professional’s firm to receive these fees, or Contract Value. We do not |
• | do not cancel your Contract during this time, we re-allocate your Contract Value to the Index Options according to your Purchase Payment default instructions |
Investment Management Company and Adviser/Subadviser | Investment Option Name | Asset Class | Investment Objective | Principal Investment Strategies (Normal market conditions) |
Blackrock | ||||
Allianz Investment Management LLC/BlackRock Advisors, LLC | AZL Government Money Market Fund | Cash Equivalent | Current income consistent with stability of principal | Invests at least 99.5% of its total assets in cash, government securities, or repurchase agreements that are collateralized fully. Invests at least 80% in government securities or in repurchase agreements collateralized by government securities. Investments include U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, and repurchase agreements secured by such obligations. In addition, the Fund may invest in variable and floating rate instruments. During extended periods of low interest rates, and due in part to contract fees and expenses, the yield of the AZL Government Money Market Fund may also become extremely low and possibly negative. |
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 |
• | You receive proxy materials and a voting instruction form. |
Variable Account Value increases when…. | Variable Account Value decreases when…. |
• • there is positive | • • there is negative • we deduct Contract expenses |
Contract 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 MVA) or Contract Value transfer, • you receive a negative Credit or Daily Adjustment, or • we deduct Contract expenses |
Contract expenses we deduct from the Index Options include the product fee, rider fee, and contract maintenance |
• | increase when |
• | decrease when assets are removed from |
• | 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, |
• | 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. |
• | Partial withdrawals you request and Contract expenses we deduct reduce these values by the dollar amount withdrawn from the Index Option. |
– | We deduct partial withdrawals and Contract 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 applicable |
– | We then reduce each Index Option Base by the same percentage that the amount withdrawn reduced its associated Index Option Value. |
• Partial withdrawals and Contract expenses we deduct from the Index Options during the Term 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 |
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 • -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 • -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 • 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 Buffer. Assume the Buffer for the 1-year Term is 10%. If the Index Return for the year is…• -8%, the Performance Credit is zero. • -12%, the Performance Credit is -2%. | Performance Credit is equal to the Index Return up to the Cap set on the Term Start Date Assume the Cap for the 1-year Term is 8%. If the Index Return for the year is…• 0%, the Performance Credit is zero. • 6%, the Performance Credit is 6%. • 12%, the Performance Credit is 8%. |
Index Performance Strategy – 3-year Term | ||
Performance Credit is equal to the negative Index Return in excess of the Buffer. Assume the Buffer for the 3-year Term is 10%. 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 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%. |
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 – 6-year Term | Performance Credit is equal to the negative Index Return in excess of the Buffer. Assume the Buffer for the 6-year Term is 10%. 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%. |
In general, if corporate bond yields at the time of the withdrawal are… | then the MVA will be… |
Less than they were when the Annual Contribution Amount was established | Positive |
Equal to what they were when the Annual Contribution Amount was established | Zero |
Greater than what they were when the Annual Contribution Amount was established | Negative |
A is one plus the | |
• | B is one plus the yield on the Bloomberg Barclays US Long Corporate Bond Index |
Calculating an MVA on a partial withdrawal | Example | |
For purposes of calculating an MVA on a partial withdrawal, we withdraw Purchase Payments on a “first-in-first-out” (FIFO) basis as follows. | You make an initial Purchase Payment of $55,000 on the Index Effective Date (your 1st Annual Contribution Amount), and make another Purchase Payment on the first Index Anniversary of $45,000 (your 2nd Annual Contribution Amount), for a total Annual Contribution Amount of $100,000. The yield on the Bloomberg Barclays US Long Corporate Bond Index on the Index Effective Date is 2.00%, and is 3.00% on the first Index Anniversary (these are “A” in the MVA factor formula). On the third Index Anniversary, your Contract Value is $110,000, the yield on the Bloomberg Barclays US Long Corporate Bond Index is 2.50% (this is “B” in the MVA factor formula), and you request a $70,000 withdrawal. The time remaining in each Annual Contribution Amount is 4 years for the 1st amount, and 5 year for the 2nd amount (“t” in our MVA factor formula). We withdraw money and compute the MVA as follows. | |
1. First we withdraw from any Variable Account Value in the AZL Government Money Market Fund. This withdrawal is not subject to an MVA and does not reduce your Annual Contribution Amounts. | 1. Variable Account Value in the AZL Government Money Market Fund. You made no Purchase Payments during the third Index Year, so there is no Variable Account Value in the fund and this does not apply. | |
2. Next we withdraw from any Annual Contribution Amounts beyond the seven Index Year MVA period. This withdrawal is not subject to an MVA and does not reduce your Annual Contribution Amounts. | 2. Annual Contribution Amounts beyond the MVA period. Both Annual Contribution Amounts are still within the MVA period, so this does not apply. | |
3. Then, if this is a partial withdrawal taken during the Accumulation Phase and before the Income Period, we withdraw from the free withdrawal privilege. Withdrawals you take under the free withdrawal privilege are not subject to an MVA and do not reduce your Annual Contribution Amounts. | 3. Amounts available under the free withdrawal privilege. You did not take any other withdrawals this Index Year, so you can withdraw up to 10% of your total Annual Contribution Amounts (or $10,000) without incurring an MVA. |
Calculating an MVA on a partial withdrawal | Example | |
4. Next, on a FIFO basis, we withdraw from any Annual Contribution Amounts within your Contract’s seven Index Year MVA period and assess an MVA. The MVA for an Annual Contribution Amount is equal to the amount of Purchase Payment withdrawn from that Annual Contribution Amount multiplied by the MVA factor. We determine your total MVA by multiplying each Annual Contribution Amount by its applicable MVA and then totaling the MVAs. This withdrawal reduces your Annual Contribution Amounts. | 4. Annual Contribution Amounts within the MVA period on a FIFO basis. The total amount we withdraw from the 1st Annual Contribution Amount is $55,000, which is subject to a -$1,065.34 MVA, and you receive $53,934.66. We determine this amount as follows: The MVA factor is [(A ÷ B)t -1] = [(2% ÷ 2.50%)4 – 1] = -1.94%. (amount withdrawn) x (1 + MVA factor) = the amount you receive, or: $55,000 x 0.9806) = $53,934.66 Next we withdraw from the 2nd Annual Contribution Amount. So far, you received $64,934.66 ($10,000 under the free withdrawal privilege and $53,934.66 from the 1st Annual Contribution Amount), so we withdraw $6,065.34 from the 2nd Annual Contribution Amount to equal the $70,000 you requested. The MVA factor is [(A ÷ B)t -1] = [(3% ÷ 2.50%)5 – 1] = 2.46%. We calculate the total amount withdrawn and its partial MVA as follows: (the amount you receive) ÷ (1 + MVA factor) = amount withdrawn, or: $6,065.34 ÷ 0.9754 = $5,919.55 | |
5. Finally, we withdraw from any Contract earnings. This withdrawal is not subject to an MVA and does not reduce your Annual Contribution Amounts. | 5. Contract earnings. We already withdrew your requested amount, so this does not apply. In total we withdrew $70,919.55 from your Contract, of which you received $70,000 and the partial MVA was -$919.55 (which is less than the 10% limit on the amount withdrawn). |
• We do not reduce the Annual Contribution Amounts for MVA-Free Withdrawals, the deduction of Contract expenses, or to investment advisory fees you authorize your Financial Professional’s firm to receive from the Contract. This means upon a full withdrawal, if your Contract Value is less than your remaining Annual Contribution Amounts that are still subject to an MVA, we will assess an MVA on more than the amount withdrawn. This can occur because your Contract Value was reduced for: |
– prior MVA-Free Withdrawals, |
– deductions of Contract fees or expenses, |
– investment advisory fees you authorize your Financial Professional’s firm to receive from the Contract, and/or |
– poor performance. |
• Withdrawals 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). |
• For tax purposes in most instances, withdrawals from Non-Qualified Contracts are considered to come from earnings first, not Purchase Payments. |
Annual Contract Fees (as a percentage of the Charge Base) | |
Product Fee(1) | |
Rider Fee for the Income Benefit | 0.70% |
Rider Fee for the optional Maximum Anniversary Value Death Benefit(2) | 0.20% |
Total Contract Fees for Contracts with the Income Benefit and optional Maximum Anniversary Value Death Benefit |
(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 |
(2) | We no longer assess the 0.20% rider fee for the Maximum Anniversary Value Death Benefit once we receive either the first Valid Claim from any one Beneficiary, or due proof of a Determining Life’s death if you and the Determining Life are different individuals and the Determining Life predeceases you. |
Issue Date | Non-Quarterly Contract Anniversaries | Quarterly Contract Anniversaries* |
• The Charge Base is equal to your initial Purchase Payment.• We begin calculating and accruing the daily product fee, and rider fee if applicable, on the day after the Issue Date. | • First we calculate and accrue the daily product and rider fees, using the Charge Base. If this is a non-Business Day we use the Charge Base from the end of the prior Business Day.• Then if this is a Business Day we increase/decrease the Charge Base as follows. – If we receive an additional Purchase Payment, we increase the Charge Base by the amount we receive. – If you take a partial withdrawal (including | • First we process all daily transactions and determine your Contract Value. Daily transactions include any gains/losses due to – We deduct the accrued product and rider fees for the prior quarter on a dollar for dollar basis from the Contract Value, and proportionately from each |
Example: Contract Value is $125,000; Charge Base is $127,000; a $10,000 partial withdrawal (including any Any increase/decrease to the Charge Base will increase/decrease the daily product and rider fees we calculate and accrue on the next day. | ||
Examples of how we calculate the product and rider fees are included in Appendix |
We do not treat the deduction of the accrued product and rider fees as a withdrawal when computing your Guaranteed Death Benefit Value (see section |
• | If you take a full withdrawal of the |
• | If you annuitize the Contract, we deduct the final accrued product and rider fees before calculating Annuity Payments. |
• | Upon the death of an Owner (or Annuitant if the Owner is a non-individual), we deduct the final accrued rider fee for the Maximum Anniversary Value Death Benefit before calculating the death benefit, and we deduct the final accrued product fee before calculating the death benefit if death benefit payment Option A or Annuity Payments under death benefit payment Option C is selected. If the Income Benefit ends due to death, we also deduct its final rider fee before calculating the death benefit. |
If on a Quarterly Contract Anniversary (or the next Business Day if the Quarterly Contract Anniversary is a non-Business Day) the Contract Value is less than the accrued product and rider fees, we deduct your total remaining Contract Value to cover the accrued product and rider fees and reduce your Contract Value to zero. If the deduction of the accrued product and rider fees reduces your Contract Value to zero and the Income Benefit and your selected death benefit |
• | During the Accumulation Phase (and Income Period, if |
• | During the Annuity Phase if the |
• | 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 |
• | by taking a withdrawal; |
• | by taking Income Payments; |
• | by taking required minimum distributions (Qualified Contracts only) as discussed in “Minimum Distribution Program and Required Minimum Distribution (RMD) Payments” later in this section; |
• | by taking Annuity Payments; or |
• | when we pay a death benefit. |
* | Does not apply to required minimum distributions. |
** | Does not apply to Income Payments or required minimum distributions. |
• | total Contract Value, |
• | less any final product fee, final rider fee and final contract maintenance charge, and |
• |
• Withdrawals may be subject to |
• Joint Owners: We send |
• 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, surrenders, 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, partial withdrawal, surrender, 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 |
• | 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 |
• | 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 |
• If Annuity Payments would be less than $100, we reserve the right to require you to take a full withdrawal of the Cash Value and your Contract will then terminate. |
• If on the maximum Annuity Date |
• 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 B or F as follows. |
For single Income Payments, if you choose Annuity Option B (Life) the sole Covered Person becomes the sole Annuitant and your Annuity Payments are equal to the greater of: |
– annual Annuity Payments under Annuity Option B based on the greater of Contract Value or Cash Value; or |
– the current annual maximum Income Payment available to you. |
For joint Income Payments, if you choose Annuity Option F (Joint and Survivor) the joint Covered Persons become the joint Annuitants and your Annuity Payments are equal to the greater of: |
– annual Annuity Payments under Annuity Option F based on the greater of Contract Value or Cash Value; or |
– the current annual maximum Income Payment available to you. |
If you select 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, or by the Daily Adjustment if you exercise a Performance Lock, as described in section 9. |
– 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 11, Taxes – Taxation of Annuity Contracts. |
• | 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 adjusted for withdrawals. Withdrawals reduce total Purchase Payments by the percentage of Contract Value withdrawn, determined at the end of each Business Day. Withdrawals include all withdrawals (even MVA-Free Withdrawals) and any MVA, but not amounts we withdraw for Contract fees and expenses or investment advisory fees you authorize your Financial Professional’s firm to receive from the Contract. |
• | 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 deduct 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 Buffer that you would have received if you had waited until the Term End Date to begin Income Payments. |
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 an MVA. |
• For annuitization: If on the Annuity Date you are receiving Income Payments and your Contract Value is positive, we will convert your Income Payments to Annuity Payments if you take Annuity Payments under Annuity Option B or F. If you select any other Annuity Option, we will not convert your Income Payments to Annuity Payments. This means that if you annuitize your Contract you may receive less as Annuity Payments than you would have received as Income Payments. For more information, see section 8, The Annuity Phase – When Annuity Payments Begin. |
• | 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 |
• | Lifetime Income Percentages for the initial Purchase Payment are now 5.20% (4.20% + (0.25% x 4)) for Level Income and 4.20% (3.20% + (0.25% x 4)) for Increasing Income. |
• | 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 adjusted for withdrawals, 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 adjusted for withdrawals, 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 adjusted for withdrawals, 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 adjusted for withdrawals, 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. |
• | If you select multiple Index Options, we take the weighted average of all DPSCs, Protection Credits, and locked increased Index Option Values based on the percentage of Contract Value in each of your selected Index Options to determine your payment increase as indicated in the example below. |
• | When calculating this payment increase we use the Contract Value determined at the end of the Business Day before we apply any Credits, or we deduct any Income Payment, Excess Withdrawal, Contract fees or expenses, or investment advisory fees you authorize your Financial Professional’s firm to receive from the Contract. If the Income Benefit Date or an Income Benefit Anniversary does not occur on a Business Day, we use Contract Values from the next Business Day. |
• | If you selected multiple Index Options, we determine your weighted average of all DPSCs, Protection Credits, and locked Daily Adjustments using the percentage of Contract Value in each Index Option either at the end of the prior Business Day before your Contract Value reduced to zero, or at the end of the Business Day on the Annuity Date if you convert Income Payments to Annuity Payments. |
• | We determine this Contract Value after we apply any Daily Adjustments or Credits, or we deduct any Income Payment, Excess Withdrawal, Contract fees and expenses, or investment advisory fees you authorize your Financial Professional’s firm to receive from the Contract. |
• | You can change the proportions that we use to calculate this weighted average by submitting an authorized request to our Service Center. |
• | The Annuity Date. |
• | The Income Benefit Anniversary that occurs on or immediately after the date the Contract Value is reduced to zero. |
• | The Business Day the Income Benefit ends. |
• | The Business Day the Contract ends. |
• | 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 of the Cash Value, 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. |
If we receive notice of death of a Covered Person during the Income Period we will suspend Income Payments and the Income Benefit will end as described above. However, if a federally recognized spouse who is also a joint Covered Person continues this Contract, we will resume Income Payments and add any Income Payments that we would have paid between the time we suspended Income Payments and when they resume to future Income Payments. |
• | total Purchase Payments adjusted for withdrawals if you select the Traditional Death Benefit, or |
• | the Maximum Anniversary Value if you select the Maximum Anniversary Value Death Benefit. |
• | We increase it by the amount of any additional Purchase Payments. |
• | We reduce it by the percentage of any Contract Value withdrawn. |
• | its current value after processing any additional Purchase Payments or withdrawals, or |
• | the Contract Value determined at the end of the Business Day after we process all daily transactions including Credits, any additional Purchase Payments or withdrawals, and amounts we withdraw for Contract 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. |
• | the older Determining Life’s 91st birthday, or |
• | the end of the Business Day we receive the first Valid Claim from any one Beneficiary. |
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 MVA), which means this value may be reduced by more than the amount withdrawn. Taking Income Payments and 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, |
• | Contract Value determined at the end of the Business Day during which we receive his or her Valid Claim, or |
• | Cash 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 if the Contract Value is less than the Cash Value or Guaranteed Death Benefit Value, we increase the Contract Value to equal the |
• | Upon your death your Beneficiary(s) receive the the greater of Contract Value or Cash 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 |
• | 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 |
• | 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 |
• | 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. |
Type of Contract | Persons and Entities that can buy 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. We may determine which types of qualified retirement plans are eligible to purchase this |
• | Taxes on earnings are deferred until you take money out. Non-Qualified Contracts owned by corporations or partnerships do not receive income tax deferral on earnings. |
• | When you take money out of a Non-Qualified Contract, earnings are generally subject to federal income tax and applicable state income tax. All pre-tax money distributed from Qualified Contracts are subject to federal and state income tax, but qualified distributions from Roth IRA Contracts are not subject to federal income tax. This prospectus does not address specific state tax laws. You should discuss state taxation with your tax adviser. |
• | Taxable distributions are subject to an ordinary income tax rate, rather than a capital gains rate. |
• | Distributions from Non-Qualified Contracts are considered investment income for purposes of the Medicare tax on investment income. Thus, in certain circumstances, a 3.8% tax may apply to some or all of the taxable portion of distributions (e.g. earnings) to individuals whose income exceeds certain threshold amounts ($200,000 for filing single, $250,000 for married filing jointly and $125,000 for married filing separately.) Please consult a tax adviser for more information. |
• | If you take partial withdrawals from your Non-Qualified Contract, the withdrawals are generally taxed as though you were paid taxable earnings first, and then as a non-taxable return of Purchase Payments. |
• | If you annuitize your Non-Qualified Contract and receive a stream of Annuity Payments, you receive the benefit of the exclusion ratio. The exclusion ratio is a calculation that causes a portion of each Annuity Payment to be non-taxable, based upon the percentage of your Contract Value that is from Purchase Payments. Purchase Payments are treated as a non-taxable return of principal, whereas earnings are taxable. |
• | If you take partial withdrawals or annuitize a Qualified Contract, you will be responsible for determining what portion, if any, of the distribution consists of after-tax money. |
• | Income Payments are taxed as partial withdrawals. |
• | If you take out earnings before age 59 1⁄2, you may be subject to a 10% additional federal tax, unless you take a lifetime annuitization of your Contract or you take money out in a stream of substantially equal payments over your expected life in accordance with the requirements of the Code. If the Contract is jointly owned, we send |
• | A pledge, assignment, or ownership change of a Contract may be treated as a taxable event. You should discuss any pledge, assignment, or ownership change of a Contract with your tax adviser. |
• | If you purchase multiple non-qualified deferred annuity contracts from an affiliated group of companies in one calendar year, these contracts are treated as one contract for purposes of determining the tax consequences of any distribution. |
• | Death benefit proceeds from Non-Qualified Contracts are taxable to the beneficiary as ordinary income to the extent of any earnings. Death benefit proceeds must be paid out in accordance with the requirements of the Code. |
• | Depending upon the type of Qualified Contract you own, required minimum distributions (RMDs) must be satisfied when you reach a certain age. If you enroll in our minimum distribution program, we make RMD payments to you that are designed to meet this Contract’s RMD requirements. |
• | When you take money out of a Contract, we may deduct premium tax that we pay on your Contract. This tax varies from 0% to 3.5%, depending on your state. Currently, we pay this tax and do not pass it on to you. |
• | you might have to pay a withdrawal charge on your previous contract, |
• | |
• | other fees and expenses under this Contract may be higher (or lower), |
• | the benefits may be different, and |
• | you no longer have access to any benefits from your previous contract. |
• | overhead, |
• | legal fees, |
• | accounting fees, |
• | Financial Professional training, |
• | compensation for the ALFS management team, and |
• | other expenses associated with the Contracts. |
• | 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 |
• | William E. Gaumond, Senior Vice President, Chief Financial Officer and Treasurer |
• | Eric J. Thomes, Senior Vice President, Chief Distribution Officer |
• | Jasmine M. Jirele, 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)(2) | Non-Equity Incentive Plan Compensation (g) | All Other Compensation (i)(3) | Total (j) |
Walter R. White President and Chief Executive Officer | 2020 | $865,100 | N/A | $1,593,774 | $1,062,516 | $27,721 | $3,549,111 |
William E. Gaumond Senior Vice President, Chief Financial Officer and Treasurer | 2020 | $468,885 | N/A | $482,241 | $321,494 | $26,300 | $1,298,920 |
Eric J. Thomes Senior Vice President, Chief Distribution Officer | 2020 | $525,000 | N/A | $699,679 | $333,119 | $30,427 | $1,588,225 |
Jasmine M. Jirele Senior Vice President, Chief Growth Officer | 2020 | $458,380 | $200,000(1) | $471,436 | $314,291 | $22,787 | $1,466,894 |
Neil H. McKay Senior Vice President, Chief Actuary | 2020 | $510,000 | N/A | $490,212 | $326,808 | $27,538 | $1,354,558 |
(1) | 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. |
(2) | 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 2021 for the 2020 performance year have a March 2025 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. |
(3) | The following table provides additional details regarding compensation found in the “All Other Compensation” column. |
Name | Year | Spousal Travel(4) | Milestone/ Anniversary/ Recognition(5) | Life Insurance Premiums | Employer Match to 401(k) Plan | ASAAP Contribution(6) | Total |
Walter R. White | 2020 | $5,431 | -- | $915 | $21,375 | -- | $27,721 |
William E. Gaumond | 2020 | $4,257 | -- | $668 | $19,500 | $1,875 | $26,300 |
Eric J. Thomes | 2020 | $6,445 | $1,800 | $807 | $19,500 | $1,875 | $30,427 |
Jasmine M. Jirele | 2020 | -- | $1,000 | $412 | $19,500 | $1,875 | $22,787 |
Neil H. McKay | 2020 | $5,431 | -- | $732 | $21,375 | -- | $27,538 |
(4) | Represents reimbursement or payments made to defray the costs of a spouse’s travel. |
(5) | Represents Milestone Anniversary Program, which pays a bonus at three and five year anniversaries, and then every five years thereafter. |
(6) | Represents company matching contribution to the Allianz Supplemental Asset Accumulation Plan for deferrals in excess of IRS compensation limit. |
Name (a) | Grant Date (b) | Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1),(2) | Estimated Future Payouts Under Equity Incentive Plan Awards(3) | ||||
Threshold ($) (c) | Target ($) (d) | Maximum ($) (e) | Threshold ($) (f) | Target ($) (g) | Maximum ($) (h) | ||
Walter R. White | 3/5/2021 | ||||||
RSUs (under AEI) | $0 | $1,557,180 | $7,708,041 | ||||
AIP Award | $0 | $1,038,120 | $1,712,898 | ||||
William E. Gaumond | 3/5/2021 | ||||||
RSUs (under AEI) | $0 | $506,396 | $2,506,659 | ||||
AIP Award | $0 | $337,597 | $675,194 | ||||
Eric J. Thomes | 3/5/2021 | ||||||
RSUs (under AEI) | $0 | $567,000 | $2,806,650 | ||||
AIP Award | $0 | $378,000 | $756,000 | ||||
Jasmine M. Jirele | 3/5/2021 | ||||||
RSUs (under AEI) | $0 | $495,050 | $2,450,499 | ||||
AIP Award | $0 | $330,034 | $660,067 | ||||
Neil H. McKay | 3/5/2021 | ||||||
RSUs (under AEI) | $0 | $550,800 | $2,726,460 | ||||
AIP Award | $0 | $367,200 | $734,400 |
(1) | The target and maximum columns show the target award and maximum award for 2020 for each NEO under the AIP. There is no threshold amount for any participant in the AIP. The actual 2020 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, 2020” for disclosure regarding the number of RSUs that are unvested as of December 31, 2020. |
(3) | The target and maximum columns show the target award and maximum award for 2020 for each NEO under the AEI. There is no threshold amount for any participant in the AEI. The actual 2020 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 | ||
8,161 | $1,985,898 | |
7,030 | $1,710,680 | |
5,239 | $1,274,858 | |
6,097 | $1,483,644 | |
William E. Gaumond | ||
1,452 | $353,330 | |
2,039 | $496,170 | |
1,538 | $374,257 | |
1,948 | $474,026 | |
Eric J. Thomes | ||
617 | $150,141 | |
492 | $119,723 | |
457 | $111,206 | |
1,474 | $358,683 | |
Jasmine M. Jirele | ||
0 | $0 | |
0 | $0 | |
1,467 | $356,980 | |
1,886 | $458,939 | |
Neil H. McKay | ||
2,550 | $620,517 | |
2,203 | $536,078 | |
1,731 | $421,222 | |
2,123 | $516,611 |
(1) | Represents unvested RSUs issued pursuant to the AEI. RSUs issued under the AEI during 2020 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 2021, the RSUs listed on the second line will exercise in 2022, the RSUs listed on the third line will exercise in 2023, and the RSUs listed on the fourth line will exercise in 2024. |
(3) | Based on an assumed stock price of $243.34 per share, which was the arithmetic average of the closing prices of an Allianz SE share in the electronic cash market trading system Xetra (or any successor system) on December 30, 2020 and the nine immediately preceding trading days, converted from Euros into U.S. dollars. |
Name | Stock Awards | |
Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($)(1) | |
Walter R. White | 10,097 | $2,259,088 |
William E. Gaumond | 721 | $161,315 |
Eric J. Thomes | 732 | $163,777 |
Jasmine M. Jirele | - | $0 |
Neil H. McKay | 3,536 | $791,140 |
(1) | Represents Allianz SE RSUs that were exercised during 2020 pursuant to the AEI. Amounts realized were paid in cash. |
NEOs | Lump Sum Payment |
Walter R. White | $1,730,200 |
William E. Gaumond | $703,328 |
Eric J. Thomes | $787,500 |
Jasmine M. Jirele | $687,570 |
Neil H. McKay | $765,000 |
(1) | Mr. White is not eligible to receive payments pursuant to the Executive Severance Plan. See “Allianz Life Executive Severance Agreement” for information regarding severance payments that Mr. White is eligible to receive upon termination of service. |
Name | Fees Earned or Paid in Cash ($)(1) | Total ($) |
(a) | (b) | (h) |
Jacqueline Hunt(2) Chair of the Board | N/A | N/A |
Walter R. White(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 |
Anna Sophie Herken(3) Non-Independent Director | N/A | N/A |
Ronald M. Clark Independent Director | $10,000 | $10,000 |
Howard E. Woolley Independent Director | $40,000 | $40,000 |
Kevin E. Walker Independent Director | $50,000 | $50,000 |
Udo Frank Independent Director | $75,000 | $75,000 |
(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, 2020. |
(2) | Mses. Hunt and Herken did not receive any compensation for their services as directors since they are employed by one of our affiliates. |
(3) | As employee directors, Messrs. White and Gaumond do not receive any compensation for their service as directors. The compensation 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 surrenders and 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 surrenders and 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. |
• | Losses on Real Estate Investments. A portion of our investment portfolio consists of mortgage loans and mortgage-backed securities related to commercial, agricultural and residential real estate. The value of our real estate investments may be negatively impacted by general economic conditions in the real estate sector, including supply and demand, market volatility, and interest rate fluctuations, as well as the creditworthiness of obligors. |
• | Losses upon the Sale of Illiquid Investments. We hold certain investments that may lack liquidity, such as privately placed fixed maturity investments, mortgage loans, collateralized debt obligations, commercial mortgage-backed securities, equity real estate and limited partnership interests. Although we seek to minimize the likelihood that we would need to sell illiquid investments, if we were required to liquidate these investments on short notice, we may have difficulty doing so and may be forced to sell them for less than their fair value. |
• | Loss of Market Share to Competitors. There is strong competition among insurers, banks, brokerage firms and other financial institutions and providers seeking clients for the types of products and services that we provide. A loss of market share to our competitors could result in financial losses to our business. Our ability to successfully compete is dependent on numerous factors, some of which include the successful implementation of our business strategy, our financial strength, the attractiveness of our products and services, our relationships with distributors, and our reputation. Our ability to compete may also be hindered if our competitors obtain or seek to enforce intellectual property rights against us, or if we are otherwise precluded from offering products or services that are in demand. Our ability to compete may also be hindered if we are not able to protect or enforce our own intellectual property rights. |
• | Defaults by Counterparties. Third-parties that owe us money, securities, or other assets may not fulfill their obligations to us. These parties may include issuers of investments that we may hold, borrowers under loans that we may hold or extend, counterparties under swap and other derivative contracts and other third-parties (e.g., customers, trading counterparties, brokers, dealers, banks, investment funds, clearing agents, exchanges and clearing houses). In addition, with respect to secured transactions, the risk of default may be exacerbated when the collateral held by us cannot be liquidated or is liquidated at a price that is not sufficient to cover the full amount owed to us. A party may default on its obligations for a variety of reasons, including bankruptcy, lack of liquidity, downturns in the economy or real estate market and operational failure. General economic conditions and trends may also result in increased defaults. |
• | 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; |
• | material increases in the number or amount of surrenders and withdrawals under our insurance products; |
• | 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. |
• | Economic conditions and uncertainties may negatively impact the value, cash flow, and liquidity of our general account investments due to, e.g., market volatility, reduced liquidity, changes in interest rates, economic shutdowns or slowdowns, government regulations, and counterparty defaults. |
• | Voluntary or government mandated hardship assistance that we provide to our customers in the form of, e.g., grace periods for failure to make timely payments, may reduce our net income and surplus. |
• | Reductions in new sales of our financial products or reductions in fees collected by us, or increases in surrenders, cancellations, or defaults with respect to our customers’ existing financial products, as a result of economic conditions and uncertainties may reduce our net income and surplus. |
• | Economic conditions and uncertainties may limit our access to sources of capital and our ability to obtain reinsurance. |
• | Voluntary and government mandated pandemic |
• | From you, either directly or through our financial professionals. This may include information provided on your insurance application or other forms you may complete. The information we collect includes, but is not limited to, your name, Social Security number, address, telephone number, mobile phone number, and email address. |
• | From others, through the process of issuing a policy or handling a claim. This may include information from consumer reporting agencies and medical or accident reports. |
• | From your doctor or during a home visit by a health care professional. This may include your health records gathered with your written consent. |
• | From your relationship with us. For example, this may include the number of years you have been a customer or the types of products you have purchased. |
• | From data brokers that collect publicly available information about you. This includes household information, financial transactions, and social media activity. |
• | With people and entities when we have your consent to share your information. |
• | With our affiliates and other third parties in order to process your application, or administer or service your policy. |
• | With consumer reporting agencies to obtain a medical report, credit report, or motor vehicle report. These reports are used to decide eligibility for a policy or to process transactions you request. |
• | With our financial professionals so that they can service your policy. They may also inform you of other Allianz products and services that may be of interest to you. |
• | With health care providers in order to process your claim. |
• | As required or otherwise permitted by law. This may include sharing information with state insurance agencies, law enforcement, and other government officials. We may also share your information to respond to subpoenas, court orders, and other legal requests. |
• | With research groups to conduct studies on our business to improve the products and services we offer. |
• | To inform you of products and services that may be of interest to you. These communications may be made by us, our financial professionals, or through third parties. |
• | With our affiliates so they can market their products and services to you. State insurance laws do not allow you to restrict this disclosure. |
• | Allianz Life Insurance Company of North America |
• | Allianz Life Financial Services, LLC |
Allianz Life as Custodian | |
Legal Opinions | |
Distributor | |
Administrative Service Fees | |
Federal Tax Status | |
Annuity Contracts in General | |
Taxation of Annuities in General | |
Qualified Contracts | |
Purchasing a Qualified Contract | |
Distributions-Qualified Contracts | |
Distributions-Non-Qualified Contracts | |
Required Distributions | |
Diversification | |
Owner Control | |
Contracts Owned by Non-Individuals | |
Annuity Purchases by Nonresident Aliens and Foreign Corporations |
Income Tax Withholding | |
Multiple Contracts | |
Partial 1035 Exchanges | |
Assignments, Pledges and Gratuitous Transfers | |
Death Benefits | |
Spousal Continuation and the Federal Defense of Marriage Act (DOMA) | |
Federal Estate Taxes | |
Generation-Skipping Transfer Tax | |
Foreign Tax Credits | |
Possible Tax Law Changes | |
Annuity Payments | |
Annuity Payment Options | |
Appendix A – Death of the Owner and/or Annuitant | |
Appendix B – Allianz Life Variable Account B Financial Statements |
• | 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 DPSC, Precision Rate, Cap, and/or Participation Rate, |
(ii) | either any Index losses greater than the Buffer or Index losses down to the 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) |
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% | ||||||||||||||
4th Anniversary Renewal DPSCs | 3.75% | 3.75% | 3.65% | 4.05% | 3.90% | 4.20% | 4.00% | 4.40% | ||||||||||||||||
5th Anniversary Renewal DPSCs | 3.90% | 4.00% | 3.90% | 4.20% | 4.00% | 4.40% | ||||||||||||||||||
6th Anniversary Renewal DPSCs | 3.90% | 4.20% | 4.00% | 4.40% | ||||||||||||||||||||
7th Anniversary Renewal DPSCs | 4.00% | 4.20% |
Index Effective Dates: | 1/2/2019 - 1/6/2020 | 1/7/2020 - 1/4/2021 | ||||||
DPSCs | Lowest | Highest | Lowest | Highest | ||||
Initial DPSCs | 3.80% | 5.90% | 2.30% | 3.80% | ||||
1st Anniversary Renewal DPSCs | 3.70% | 5.70% |
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% |
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 DPSCs1 | 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% |
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 DPSCs1 | 3.65% | 5.10% | 4.10% | 5.20% | 4.10% | 5.20% | 5.20% | 6.40% | NA | NA | ||||||||||
2nd Anniversary Renewal DPSCs2 | 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% |
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 DPSCs1 | 3.75% | 5.40% | 4.20% | 5.50% | 4.10% | 5.50% | 5.20% | 7.10% | NA | NA | ||||||||||
1st Anniversary Renewal DPSCs2 | 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% |
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 DPSCs1 | 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% |
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% |
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% |
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 Rates1 | 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% |
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 Rates1 | 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 Rates2 | 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% |
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 Rates1 | 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% |
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 Rates1 | 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% |
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% |
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% |
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 Caps1 | 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% |
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 Caps1 | 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% |
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 Caps1 | 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% |
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 Caps1 | 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% |
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% |
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% |
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% |
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 Caps1 | 10.50% | 15.50% | 13.25% | 17.50% | 9.75% | 15.25% | 13.50% | 17.50% | NA | NA | ||||||||||
1st Anniversary Renewal Caps2 | 10.75% | 15.50% | 13.75% | 18.50% | 10.75% | 15.00% | 13.75% | 16.50% | NA | NA | ||||||||||
2nd Anniversary Renewal Caps3 | 9.25% | 12.00% | 12.00% | 16.50% | 9.50% | 12.00% | 22.00% | 25.00% | NA | NA | ||||||||||
3rd Anniversary Renewal Caps4 | 9.25% | 13.75% | 11.00% | 14.50% | 10.75% | 15.50% | 24.00% | 25.00% | NA | NA | ||||||||||
4th Anniversary Renewal Caps5 | 10.50% | 13.25% | 12.00% | 14.75% | 11.50% | 15.00% | 25.00% | 26.50% | 15.50% | 18.00% | ||||||||||
5th Anniversary Renewal Caps6 | 11.75% | 20.25% | 12.25% | 24.00% | 11.75% | 23.75% | 25.50% | 29.25% | 17.50% | 26.00% |
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 Caps1 | 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% |
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 Caps1 | 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% |
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 Caps1 | 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% |
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 Caps1 | 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% |
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% |
Indexes: | S&P 500® Index | Russell 2000® Index | ||||||
Caps | Lowest | Highest | Lowest | Highest | ||||
5th Anniversary Renewal Caps1 | 80.00% | 80.00% | 45.00% | 45.00% |
Indexes: | S&P 500® Index | Russell 2000® Index | ||||||
Caps | Lowest | Highest | Lowest | Highest | ||||
4th Anniversary Renewal Caps1 | 80.00% | 80.00% | 45.00% | 45.00% |
Indexes: | S&P 500® Index | Russell 2000® Index | ||||||
Caps | Lowest | Highest | Lowest | Highest | ||||
3rd Anniversary Renewal Caps1 | 100.00% | 100.00% | 55.00% | 55.00% |
Indexes: | S&P 500® Index | Russell 2000® Index | ||||||
Caps | Lowest | Highest | Lowest | Highest | ||||
2nd Anniversary Renewal Caps1 | 100.00% | 100.00% | 50.00% | 55.00% |
Indexes: | S&P 500® Index | Russell 2000® Index | ||||||
Caps | Lowest | Highest | Lowest | Highest | ||||
1st Anniversary Renewal Caps1 | 100.00% | 100.00% | 50.00% | 55.00% |
Indexes: | S&P 500® Index | Russell 2000® Index | ||||||
Caps | Lowest | Highest | Lowest | Highest | ||||
Initial Caps1 | 75.00% | 85.00% | 50.00% | 80.00% |
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% | |||||||||
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% | |||||||||
7th Index Anniversary Credit | 4.20% | 3.90% | 4.20% | 4.20% | 4.20% |
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% |
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 | |||||||
Initial Precision Rate Rate | 7.00% | 7.25% | 7.25% | 7.05% | 8.70% | 8.35% | 9.95% | |||||||
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% | |||||||
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% | |||||||
1st Anniversary Renewal Precision Rate | 8.20% | 9.20% | 9.30% | 9.00% | 8.80% | 8.20% | 8.00% | |||||||
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% | |||||||
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% | |||||||
2nd Anniversary Renewal Precision Rate | 9.70% | 9.00% | 9.20% | |||||||||||
3rd Index Year Index Return | 14.17% to 18.84% | 13.59% to 18.43% | 13.17% to 18.86% | |||||||||||
3rd Index Anniversary Credit | 9.70% | 9.00% | 9.20% |
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% |
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 | |||||||
Initial Cap | 10.25% | 10.25% | 10.00% | 9.50% | 10.00% | 9.50% | 9.75% | |||||||
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% | |||||||
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% | |||||||
1st Anniversary Renewal Cap | 9.25% | 9.25% | 9.00% | 9.00% | 9.00% | 9.00% | 9.25% | |||||||
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% | |||||||
2nd Index Anniversary Credit | 9.25% | 9.25% | 9.00% | 9.00% | 9.00% | 9.00% | 9.25% | |||||||
2nd Anniversary Renewal Cap | 10.50% | 10.75% | 10.00% | 10.00% | 9.75% | 9.50% | 9.25% | |||||||
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% | |||||||
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% | |||||||
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% | ||||||||
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% | ||||||||
5th Index Anniversary Credit | 10.50% | 11.25% | 7.54% to 11.50% | 9.45% to 11.25% | 11.00% | 11.00% |
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% |
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% | |||||||||
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% | |||||||||
7th Index Anniversary Credit | 8.19% to 12.00% | 7.62% to 12.50% | 12.75% | 13.25% | 12.75% |
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% |
Part I |
Year ended December 31, | ||||||||||||||||||||||||||||||||
Selected income data | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 10,542 | 13,029 | 12,193 | 10,231 | 12,914 | ||||||||||||||||||||||||||
Net investment income | 4,864 | 4,839 | 4,593 | 4,504 | 4,361 | |||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | (45) | 329 | 245 | 612 | 157 | |||||||||||||||||||||||||||
Fees from separate accounts | 567 | 613 | 676 | 719 | 726 | |||||||||||||||||||||||||||
Other income | 694 | (13) | (3) | 150 | 179 | |||||||||||||||||||||||||||
Total income | 16,622 | 18,797 | 17,704 | 16,216 | 18,337 | |||||||||||||||||||||||||||
Policyholder benefits and surrenders | 10,343 | 10,368 | 9,436 | 8,649 | 8,111 | |||||||||||||||||||||||||||
Change in aggregate reserves | 2,465 | 1,034 | 7,299 | 10,628 | 7,755 | |||||||||||||||||||||||||||
General and administrative and commission | 1,739 | 1,878 | 1,770 | 1,616 | 1,824 | |||||||||||||||||||||||||||
Net transfers to (from) separate accounts | 1,460 | 5,254 | (2,009) | (1,851) | (1,380) | |||||||||||||||||||||||||||
Total benefits and other expenses | 16,007 | 18,534 | 16,496 | 19,042 | 16,310 | |||||||||||||||||||||||||||
Income tax expense (benefit) | 18 | 773 | (51) | 24 | 530 | |||||||||||||||||||||||||||
Net realized capital gain (loss) | 142 | 1,053 | (490) | 3,655 | (486) | |||||||||||||||||||||||||||
Net income (loss) | $ | 739 | 543 | — | 769 | 805 | 1,011 | |||||||||||||||||||||||||
Capital and Surplus: | ||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | (61) | 719 | (230) | (78) | 180 | ||||||||||||||||||||||||||
Dividends to parent | (750) | (325) | — | (780) | (894) | |||||||||||||||||||||||||||
Other change in capital & surplus | (220) | 441 | 26 | (101) | 46 | |||||||||||||||||||||||||||
Net change in capital & surplus | $ | (292) | 1,378 | 565 | (154) | 343 | ||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. |
As of December 31, | ||||||||||||||||||||||||||||||||
Selected balance sheet data | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Total cash and invested assets | $ | 125,229 | 121,870 | 117,203 | 109,328 | 99,840 | ||||||||||||||||||||||||||
Investment income due and accrued | 1,040 | 1,031 | 1,047 | 1,004 | 962 | |||||||||||||||||||||||||||
Other admitted assets | 1,218 | 945 | 951 | 982 | 685 | |||||||||||||||||||||||||||
Separate account assets | 45,901 | 34,638 | 22,835 | 26,755 | 26,071 | |||||||||||||||||||||||||||
Total admitted assets | 173,388 | 158,484 | 142,036 | 138,069 | 127,558 | |||||||||||||||||||||||||||
Total policyholder liabilities | 109,353 | 107,098 | 107,118 | 100,433 | 90,504 | |||||||||||||||||||||||||||
Other liabilities | 10,473 | 8,794 | 5,507 | 4,869 | 4,818 | |||||||||||||||||||||||||||
Separate account liabilities | 45,901 | 34,638 | 22,835 | 26,755 | 26,071 | |||||||||||||||||||||||||||
Total liabilities | 165,727 | 150,530 | 135,460 | 132,057 | 121,393 | |||||||||||||||||||||||||||
Total capital and surplus | 7,661 | 7,954 | 6,576 | 6,011 | 6,165 |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 - 2019 | 2019 - 2018 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 10,542 | 13,029 | 12,193 | $ | (2,487) | (19.1) | % | $ | 836 | 6.9 | % | |||||||||||||||||||||||||||||
Net investment income | 4,864 | 4,839 | 4,593 | 25 | 0.5 | 246 | 5.4 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | (45) | 329 | 245 | (374) | (113.7) | 84 | 34.3 | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 567 | 613 | 676 | (46) | (7.5) | (63) | (9.3) | ||||||||||||||||||||||||||||||||||
Other income | 694 | (13) | (3) | 707 | NM** | (10) | (333.3) | ||||||||||||||||||||||||||||||||||
Total income | 16,622 | 18,797 | 17,704 | (2,175) | (11.6) | 1,093 | 6.2 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 10,343 | 10,368 | 9,436 | (25) | (0.2) | 932 | 9.9 | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 2,465 | 1,034 | 7,299 | 1,431 | 138.4 | (6,265) | (85.8) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 1,739 | 1,878 | 1,770 | (139) | (7.4) | 108 | 6.1 | ||||||||||||||||||||||||||||||||||
Net transfers to (from) separate accounts | 1,460 | 5,254 | (2,009) | (3,794) | (72.2) | 7,263 | 361.5 | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 16,007 | 18,534 | 16,496 | (2,527) | (13.6) | 2,038 | 12.4 | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | 615 | 263 | 1,208 | 352 | 133.8 | (945) | (78.2) | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 18 | 773 | (51) | (755) | (97.7) | 824 | NM** | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | 142 | 1,053 | (490) | (911) | (86.5) | 1,543 | 314.9 | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 739 | 543 | 769 | $ | 196 | 36.1 | % | $ | (226) | (29.4) | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | (61) | 719 | (230) | $ | (780) | (108.5) | % | $ | 949 | 412.6 | % | |||||||||||||||||||||||||||||
Dividends to parent | (750) | (325) | — | (425) | (130.8) | (325) | — | ||||||||||||||||||||||||||||||||||
Other change in capital & surplus | (220) | 441 | 26 | (661) | (149.9) | 415 | NM** | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | (292) | 1,378 | 565 | $ | (1,670) | (121.2) | % | $ | 813 | 143.9 | % | |||||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. | |||||||||||||||||||||||||||||||||||||||||
**Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 - 2019 | 2019 - 2018 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 10,542 | 13,029 | 12,193 | $ | (2,487) | (19.1) | % | $ | 836 | 6.9 | % | |||||||||||||||||||||||||||||
Net investment income | 4,864 | 4,839 | 4,593 | 25 | 0.5 | 246 | 5.4 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | (45) | 329 | 245 | (374) | (113.7) | 84 | 34.3 | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 567 | 613 | 676 | (46) | (7.5) | (63) | (9.3) | ||||||||||||||||||||||||||||||||||
Other income | 694 | (13) | (3) | 707 | NM** | (10) | (333.3) | ||||||||||||||||||||||||||||||||||
Total income | 16,622 | 18,797 | 17,704 | (2,175) | (11.6) | 1,093 | 6.2 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 10,343 | 10,368 | 9,436 | (25) | (0.2) | 932 | 9.9 | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 2,465 | 1,034 | 7,299 | 1,431 | 138.4 | (6,265) | (85.8) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 1,739 | 1,878 | 1,770 | (139) | (7.4) | 108 | 6.1 | ||||||||||||||||||||||||||||||||||
Net transfers to (from) separate accounts | 1,460 | 5,254 | (2,009) | (3,794) | (72.2) | 7,263 | 361.5 | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 16,007 | 18,534 | 16,496 | (2,527) | (13.6) | 2,038 | 12.4 | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | 615 | 263 | 1,208 | 352 | 133.8 | (945) | (78.2) | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 18 | 773 | (51) | (755) | (97.7) | 824 | NM** | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | 142 | 1,053 | (490) | (911) | (86.5) | 1,543 | 314.9 | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 739 | 543 | 769 | $ | 196 | 36.1 | % | $ | (226) | (29.4) | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | (61) | 719 | (230) | $ | (780) | (108.5) | % | $ | 949 | 412.6 | % | |||||||||||||||||||||||||||||
Dividends to parent | (750) | (325) | — | (425) | (130.8) | (325) | — | ||||||||||||||||||||||||||||||||||
Other change in capital & surplus | (220) | 441 | 26 | (661) | (149.9) | 415 | NM** | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | (292) | 1,378 | 565 | $ | (1,670) | (121.2) | % | $ | 813 | 143.9 | % | |||||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. | |||||||||||||||||||||||||||||||||||||||||
**Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 - 2019 | 2019 - 2018 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 9,268 | 11,969 | 11,223 | $ | (2,701) | (22.6) | % | $ | 746 | 6.6 | % | |||||||||||||||||||||||||||||
Net investment income | 4,531 | 4,551 | 4,346 | (20) | (0.4) | 205 | 4.7 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | (54) | 321 | 254 | (375) | (116.8) | 67 | 26.4 | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 567 | 613 | 676 | (46) | (7.5) | (63) | (9.3) | ||||||||||||||||||||||||||||||||||
Other income | 691 | (17) | (3) | 708 | NM** | (14) | (466.7) | ||||||||||||||||||||||||||||||||||
Total income | 15,003 | 17,437 | 16,496 | (2,434) | (14.0) | 941 | 5.7 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 10,073 | 10,078 | 9,264 | (5) | — | 814 | 8.8 | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 1,474 | 289 | 6,457 | 1,185 | 410.0 | (6,168) | (95.5) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 1,369 | 1,591 | 1,518 | (222) | (14.0) | 73 | 4.8 | ||||||||||||||||||||||||||||||||||
Net transfers to (from) separate accounts | 1,462 | 5,258 | (2,006) | (3,796) | (72.2) | 7,264 | 362.1 | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 14,378 | 17,216 | 15,233 | (2,838) | (16.5) | 1,983 | 13.0 | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | 625 | 221 | 1,263 | 404 | 182.8 | (1,042) | (82.5) | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 18 | 649 | (53) | (631) | (97.2) | 702 | NM** | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | 67 | 922 | (489) | (855) | (92.7) | 1,411 | 288.5 | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 674 | 494 | 827 | $ | 180 | 36.4 | % | $ | (333) | (40.3) | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | (79) | 588 | (160) | $ | (667) | (113.4) | % | $ | 748 | 467.5 | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | (220) | 439 | 36 | (659) | (150.1) | 403 | NM** | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 375 | 1,521 | 703 | $ | (1,146) | (75.3) | % | $ | 818 | 116.4 | % | |||||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. | |||||||||||||||||||||||||||||||||||||||||
**Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 - 2019 | 2019 - 2018 | |||||||||||||||||||||||||||||||||||||
Individual Annuities | |||||||||||||||||||||||||||||||||||||||||
Deposits | $ | 9,474 | 12,135 | 11,318 | $ | (2,661) | (21.9) | % | $ | 817 | 7.2 | % | |||||||||||||||||||||||||||||
In-force | 131,228 | 126,936 | 118,602 | 4,292 | 3.4 | % | 8,334 | 7.0 | % |
Year ended December 31, | % change | ||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 - 2019 | 2019 - 2018 | |||||||||||||||||||||||||
Stock Index | |||||||||||||||||||||||||||||
S&P 500 | 16.26% | 28.88% | (6.24)% | (12.62)% | 35.12% | ||||||||||||||||||||||||
NASDAQ 100 | 47.58% | 37.96% | (1.04)% | 9.62% | 39.00% | ||||||||||||||||||||||||
BUDBI | 9.08% | 13.23% | (0.88)% | (4.15)% | 14.11% | ||||||||||||||||||||||||
BUDBI II | 6.15% | 14.05% | 0.40% | (7.90)% | 13.65% |
As of December 31, | Basis point (bps) change | ||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020- 2019 | 2019 - 2018 | |||||||||||||||||||||||||
Interest Rates | |||||||||||||||||||||||||||||
LIBOR 10yr | 0.93% | 1.90% | 2.71% | (97bps) | (81bps) | ||||||||||||||||||||||||
LIBOR 20yr | 1.32% | 2.07% | 2.83% | (75bps) | (76bps) |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 - 2019 | 2019 - 2018 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations | $ | 1,115 | 906 | 816 | $ | 209 | 23.1 | % | $ | 90 | 11.0 | % | |||||||||||||||||||||||||||||
Net investment income | 210 | 177 | 158 | 33 | 18.6 | 19 | 12.0 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 3 | 2 | (16) | 1 | 50.0 | 18 | 112.5 | ||||||||||||||||||||||||||||||||||
Other income | 2 | 3 | — | (1) | (33.3) | 3 | — | ||||||||||||||||||||||||||||||||||
Total income | 1,330 | 1,088 | 958 | 242 | 22.2 | 130 | 13.6 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 173 | 199 | 96 | (26) | (13.1) | 103 | 107.3 | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 824 | 611 | 658 | 213 | 34.9 | (47) | (7.1) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 343 | 258 | 212 | 85 | 32.9 | 46 | 21.7 | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 1,340 | 1,068 | 966 | 272 | 25.5 | 102 | 10.6 | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | (10) | 20 | (8) | (30) | (150.0) | 28 | 350.0 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | — | 59 | — | (59) | — | 59 | — | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | 77 | 131 | (1) | (54) | (41.2) | 132 | NM* | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 67 | 92 | (9) | $ | (25) | (27.2) | % | $ | 101 | NM* | ||||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 23 | 130 | (70) | $ | (107) | (82.3) | % | $ | 200 | 285.7 | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | (4) | 4 | (6) | (8) | (200.0) | 10 | 166.7 | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 86 | 226 | (85) | $ | (140) | (61.9) | % | $ | 311 | 365.9 | % | |||||||||||||||||||||||||||||
*Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 - 2019 | 2019 - 2018 | |||||||||||||||||||||||||||||||||||||
Life | |||||||||||||||||||||||||||||||||||||||||
First year and renewal premiums | $ | 1,170 | 960 | 864 | $ | 210 | 21.9 | % | $ | 96 | 11.1 | % | |||||||||||||||||||||||||||||
In-force | 50,485 | 42,700 | 37,982 | 7,785 | 18.2 | 4,718 | 12.4 |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 - 2019 | 2019 - 2018 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations | $ | 158 | 154 | 154 | $ | 4 | 2.6 | % | $ | — | — | % | |||||||||||||||||||||||||||||
Net investment income | 123 | 110 | 89 | 13 | 11.8 | 21 | 23.6 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 6 | 7 | 7 | (1) | (14.3) | — | — | ||||||||||||||||||||||||||||||||||
Other income | 2 | 2 | — | — | — | 2 | NM* | ||||||||||||||||||||||||||||||||||
Total income | 289 | 273 | 250 | 16 | 5.9 | 23 | 9.2 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 97 | 91 | 76 | 6 | 6.6 | 15 | 19.7 | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 167 | 134 | 184 | 33 | 24.6 | (50) | (27.2) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 27 | 29 | 40 | (2) | (6.9) | (11) | (27.5) | ||||||||||||||||||||||||||||||||||
Net transfers to (from) separate accounts | (2) | (3) | (3) | 1 | 33.3 | — | — | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 289 | 251 | 297 | 38 | 15.1 | (46) | (15.5) | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | — | 22 | (47) | (22) | (100.0) | 69 | 146.8 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | — | 65 | 2 | (65) | (100.0) | 63 | NM* | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | (2) | — | $ | — | (2) | NM* | — | — | |||||||||||||||||||||||||||||||||
Net income (loss) | $ | (2) | (43) | (49) | $ | 41 | 95.3 | % | $ | 6 | 12.2 | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | (5) | 1 | 1 | $ | (6) | (600.0) | $ | — | — | % | ||||||||||||||||||||||||||||||
Other change in capital & surplus | 2 | (2) | (4) | 4 | 200.0 | 2 | 50.0 | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | (5) | (44) | (52) | $ | 39 | 88.6 | % | $ | 8 | 15.4 | % | |||||||||||||||||||||||||||||
*Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 - 2019 | 2019 - 2018 | |||||||||||||||||||||||||||||||||||||
Legacy Products | |||||||||||||||||||||||||||||||||||||||||
Gross premiums written | $ | 257 | 254 | 258 | $ | 3 | 1.2 | % | $ | (4) | (1.6) | % | |||||||||||||||||||||||||||||
In-force | 2,796 | 2,993 | 3,101 | (197) | (6.6) | (108) | (3.5) |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 - 2019 | 2019 - 2018 | |||||||||||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Dividends to parent | $ | (750) | (325) | — | $ | (425) | 230.8 | % | $ | (325) | — | % |
2020 | 2019 | ||||||||||||||||||||||
Carrying value | % of total | Carrying value | % of total | ||||||||||||||||||||
Bonds | $ | 99,088 | 79.1 | % | $ | 97,269 | 79.8 | % | |||||||||||||||
Stocks | 274 | 0.2 | 181 | 0.1 | |||||||||||||||||||
Investment in subsidiaries | 1,329 | 1.1 | 1,347 | 1.1 | |||||||||||||||||||
Mortgage loans on real estate | 15,634 | 12.5 | 14,217 | 11.7 | |||||||||||||||||||
Real estate | 69 | 0.1 | 64 | 0.1 | |||||||||||||||||||
Cash and cash equivalents | 910 | 0.7 | 1,868 | 1.5 | |||||||||||||||||||
Policy loans | 255 | 0.2 | 234 | 0.2 | |||||||||||||||||||
Derivative assets | 4,114 | 3.3 | 2,391 | 2.0 | |||||||||||||||||||
Other invested assets | 3,556 | 2.8 | 4,299 | 3.5 | |||||||||||||||||||
Total cash and invested assets | $ | 125,229 | 100.0 | % | $ | 121,870 | 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 | % |
2019 | |||||||||||||||||||||||
NAIC Classes | Fair Value | % of Total | Amortized Cost | % of Total | |||||||||||||||||||
1 | 65,546 | 61.3 | % | $ | 59,711 | 61.4 | % | ||||||||||||||||
2 | 40,028 | 37.5 | $ | 36,349 | 37.4 | ||||||||||||||||||
Investment grade | 105,574 | 98.8 | $ | 96,060 | 98.8 | ||||||||||||||||||
3 | 1,049 | 1.0 | $ | 992 | 1.0 | ||||||||||||||||||
4 | 71 | 0.1 | $ | 69 | 0.1 | ||||||||||||||||||
5 | 150 | 0.1 | $ | 145 | 0.1 | ||||||||||||||||||
6 | 4 | — | $ | 3 | — | ||||||||||||||||||
Below investment grade | 1,274 | 1.2 | $ | 1,209 | 1.2 | ||||||||||||||||||
Total | 106,848 | 100.0 | % | $ | 97,269 | 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 | % |
2019 | ||||||||||||||||||||||||||
NAIC Classes | % of total CMBS | Vintage | ||||||||||||||||||||||||
1 | $ | 11,351 | 100.0 | % | 2019 | $ | 1,519 | 13.4 | % | |||||||||||||||||
2 | 1 | — | 2018 | $ | 1,806 | 15.9 | ||||||||||||||||||||
3 | 1 | — | 2017 | $ | 1,752 | 15.4 | ||||||||||||||||||||
4 | 1 | — | 2016 | $ | 1,832 | 16.1 | ||||||||||||||||||||
5 | 2 | — | 2015 and prior | $ | 4,447 | 39.2 | ||||||||||||||||||||
6 | — | — | $ | 11,356 | 100.0 | % | ||||||||||||||||||||
$ | 11,356 | 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 | % |
2019 | ||||||||||||||||||||||||||
NAIC Classes | % of total other ABS | Vintage | ||||||||||||||||||||||||
1 | $ | 2,460 | 81.1 | % | 2019 | $ | 1,189 | 39.2 | % | |||||||||||||||||
2 | 529 | 17.4 | 2018 | 926 | 30.5 | |||||||||||||||||||||
3 | 45 | 1.5 | 2017 | 251 | 8.3 | |||||||||||||||||||||
4 | — | — | 2016 | 179 | 5.9 | |||||||||||||||||||||
5 | — | — | 2015 and prior | 489 | 16.1 | |||||||||||||||||||||
6 | — | — | $ | 3,034 | 100.0 | % | ||||||||||||||||||||
$ | 3,034 | 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 | % |
2019 | ||||||||||||||||||||||||||
NAIC Classes | % of total NA RMBS | Vintage | ||||||||||||||||||||||||
1 | $ | 291 | 95.8 | % | 2019 | $ | 1 | 0.3 | % | |||||||||||||||||
2 | $ | 1 | 0.3 | 2018 | $ | 1 | 0.3 | |||||||||||||||||||
3 | $ | 3 | 1.0 | 2017 | $ | — | — | |||||||||||||||||||
4 | $ | 4 | 1.3 | 2016 | $ | — | — | |||||||||||||||||||
5 | $ | 1 | 0.3 | 2015 and prior | $ | 302 | 99.4 | |||||||||||||||||||
6 | $ | 4 | 1.3 | $ | 304 | 100.0 | % | |||||||||||||||||||
$ | 304 | 100.0 | % |
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 | % |
2019 | |||||||||||||||||||||||
Investment Grade | % of Total | Below Investment Grade | % of Total | ||||||||||||||||||||
Twelve months or less below carrying value | $ | 42 | 44.2 | % | $ | 7 | 7.1 | % | |||||||||||||||
More than twelve months below carrying value | $ | 38 | 40.0 | $ | 8 | 8.7 | |||||||||||||||||
Total | $ | 80 | 84.2 | % | $ | 15 | 15.8 | % |
2020 | 2019 | ||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||
Partnerships | $ | 1 | 1 | $ | — | — | |||||||||||||||||
Commercial mortgage loans | 34 | 1 | $ | — | — | ||||||||||||||||||
Corporate securities | 254 | 83 | $ | 28 | 14 | ||||||||||||||||||
Total | $ | 289 | 85 | $ | 28 | 14 |
2020 | 2019 | ||||||||||||||||||||||
Gross Carry Value | % of Total | Gross Carry Value | % of Total | ||||||||||||||||||||
Mortgage loans by region | |||||||||||||||||||||||
East North Central | $ | 1,244 | 8.0 | % | $ | 1,323 | 9.3 | % | |||||||||||||||
East South Central | 375 | 2.4 | 323 | 2.3 | |||||||||||||||||||
Middle Atlantic | 1,249 | 8.0 | 1,174 | 8.3 | |||||||||||||||||||
Mountain | 1,506 | 9.6 | 1,122 | 7.9 | |||||||||||||||||||
New England | 652 | 4.2 | 721 | 5.1 | |||||||||||||||||||
Pacific | 4,258 | 27.2 | 4,143 | 29.1 | |||||||||||||||||||
South Atlantic | 3,599 | 23.0 | 3,188 | 22.4 | |||||||||||||||||||
West North Central | 674 | 4.3 | 676 | 4.8 | |||||||||||||||||||
West South Central | 1,314 | 8.4 | 1,058 | 7.4 | |||||||||||||||||||
Total commercial mortgage loans | 14,871 | 95.1 | % | $ | 13,728 | 96.6 | % | ||||||||||||||||
Total residential mortgage loans | 763 | 4.9 | % | $ | 489 | 3.4 | % | ||||||||||||||||
Total mortgage loans | $ | 15,634 | 100.0 | % | $ | 14,217 | 100.0 | % |
2020 | 2019 | ||||||||||||||||||||||
Gross Carry Value | % of Total | Gross Carry Value | % of Total | ||||||||||||||||||||
Mortgage loans by property type | |||||||||||||||||||||||
Industrial | $ | 3,182 | 21.4 | % | $ | 2,733 | 19.9 | % | |||||||||||||||
Retail | 2,765 | 18.6 | $ | 2,749 | 20.0 | ||||||||||||||||||
Office | 4,771 | 32.1 | $ | 4,657 | 33.9 | ||||||||||||||||||
Apartments | 4,153 | 27.9 | $ | 3,589 | 26.2 | ||||||||||||||||||
Total | $ | 14,871 | 100.0 | % | $ | 13,728 | 100.0 | % |
2020 | 2019 | 2018 | ||||||||||||||||||
Net cash provided by operating activities | $ | 3,701 | 1,511 | 9,951 | ||||||||||||||||
Net cash (used in) provided by investing activities | (3,240) | 955 | (9,144) | |||||||||||||||||
Net cash used in financing and miscellaneous activities | (1,419) | (1,524) | (1,214) | |||||||||||||||||
Net change in cash, cash equivalents, and short-term investments | $ | (958) | 942 | (407) |
In 1 year | After 1 year | After 3 years | After | ||||||||||||||||||||||||||
Total | or less | up to 3 years | up to 5 years | 5 Years | |||||||||||||||||||||||||
Payments due | |||||||||||||||||||||||||||||
Policyholder liabilities | $ | 146,476 | 8,869 | 17,265 | 17,640 | 102,702 | |||||||||||||||||||||||
Mortgage notes payable | 41 | 10 | 23 | 8 | — | ||||||||||||||||||||||||
Operating leases | 2 | 1 | 1 | — | — | ||||||||||||||||||||||||
Total payments due | $ | 146,519 | 8,880 | 17,289 | 17,648 | 102,702 |
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Admitted Assets | 2020 | 2019 | ||||||||||||
Cash and invested assets: | ||||||||||||||
Bonds | $ | 99,088 | 97,269 | |||||||||||
Stocks | 274 | 181 | ||||||||||||
Investment in subsidiaries | 1,329 | 1,347 | ||||||||||||
Mortgage loans on real estate | 15,634 | 14,217 | ||||||||||||
Real estate | 69 | 64 | ||||||||||||
Cash, cash equivalents and short-term investments | 910 | 1,868 | ||||||||||||
Policy loans | 255 | 234 | ||||||||||||
Derivative assets | 4,114 | 2,391 | ||||||||||||
Other invested assets | 3,556 | 4,299 | ||||||||||||
Total cash and invested assets | 125,229 | 121,870 | ||||||||||||
Investment income due and accrued | 1,040 | 1,031 | ||||||||||||
Current federal and foreign income tax recoverable | 200 | — | ||||||||||||
Deferred tax asset, net | 273 | 224 | ||||||||||||
Other assets | 745 | 721 | ||||||||||||
Admitted assets, exclusive of separate account assets | 127,487 | 123,846 | ||||||||||||
Separate account assets | 45,901 | 34,638 | ||||||||||||
Total admitted assets | $ | 173,388 | 158,484 |
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Liabilities and Capital and Surplus | 2020 | 2019 | ||||||||||||
Policyholder liabilities: | ||||||||||||||
Life policies and annuity contracts | $ | 102,549 | 100,278 | |||||||||||
Accident and health policies | 1,912 | 1,743 | ||||||||||||
Deposit-type contracts | 4,749 | 4,936 | ||||||||||||
Life policy and contract claims | 8 | 10 | ||||||||||||
Accident and health policy and contract claims | 18 | 17 | ||||||||||||
Other policyholder funds | 117 | 114 | ||||||||||||
Total policyholder liabilities | 109,353 | 107,098 | ||||||||||||
Interest maintenance reserve | 18 | 148 | ||||||||||||
General expenses due and accrued | 157 | 143 | ||||||||||||
Due from separate accounts | (294) | (626) | ||||||||||||
Current income taxes payable | 35 | 118 | ||||||||||||
Borrowed money | 1,501 | 1,002 | ||||||||||||
Asset valuation reserve | 983 | 895 | ||||||||||||
Derivative liabilities | 3,262 | 2,049 | ||||||||||||
Other liabilities | 4,811 | 5,065 | ||||||||||||
Liabilities, exclusive of separate account liabilities | 119,826 | 115,892 | ||||||||||||
Separate account liabilities | 45,901 | 34,638 | ||||||||||||
Total liabilities | 165,727 | 150,530 | ||||||||||||
Capital and surplus: | ||||||||||||||
Class A, Series A preferred stock, $1 par value. Authorized, issued, and outstanding, 8,909,195 shares; liquidation preference of $2 and $2 at December 31, 2020 and 2019, 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 $10 and $10 at December 31, 2020 and 2019, respectively | 10 | 10 | ||||||||||||
Common stock, $1 par value. Authorized, 40,000,000 shares; issued and outstanding, 20,000,001 shares at December 31, 2020 and 2019, respectively | 20 | 20 | ||||||||||||
Additional paid-in capital | 3,676 | 3,676 | ||||||||||||
Special surplus funds | (1,844) | — | ||||||||||||
Unassigned surplus | 5,790 | 4,239 | ||||||||||||
Total capital and surplus | 7,661 | 7,954 | ||||||||||||
Total liabilities and capital and surplus | $ | 173,388 | 158,484 | |||||||||||
See accompanying notes to statutory financial statements. |
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2020 | 2019 | 2018 | ||||||||||||||||||
Income: | ||||||||||||||||||||
Premiums and annuity considerations | $ | 10,346 | 12,805 | 11,925 | ||||||||||||||||
Consideration for supplementary contracts | 196 | 224 | 268 | |||||||||||||||||
Net investment income | 4,864 | 4,839 | 4,593 | |||||||||||||||||
Commissions and expense allowances on reinsurance ceded | (38) | 338 | 163 | |||||||||||||||||
Reserve adjustments related to reinsurance ceded | (7) | (9) | 82 | |||||||||||||||||
Fees from separate accounts | 567 | 613 | 676 | |||||||||||||||||
Other | 694 | (13) | (3) | |||||||||||||||||
Total income | 16,622 | 18,797 | 17,704 | |||||||||||||||||
Benefits and other expenses: | ||||||||||||||||||||
Policyholder benefits | 1,926 | 1,809 | 1,822 | |||||||||||||||||
Surrenders | 8,417 | 8,559 | 7,614 | |||||||||||||||||
Change in aggregate reserves and deposit funds | 2,465 | 1,034 | 7,299 | |||||||||||||||||
Commissions and other agent compensation | 1,139 | 1,284 | 1,223 | |||||||||||||||||
General and administrative expenses | 600 | 594 | 547 | |||||||||||||||||
Net transfers to (from) separate accounts | 1,460 | 5,254 | (2,009) | |||||||||||||||||
Total benefits and other expenses | 16,007 | 18,534 | 16,496 | |||||||||||||||||
Income (loss) from operations before federal income taxes and net realized capital gain (loss) | 615 | 263 | 1,208 | |||||||||||||||||
Income tax expense (benefit) | 18 | 773 | (51) | |||||||||||||||||
Net (loss) income from operations before net realized capital gain (loss) | 597 | (510) | 1,259 | |||||||||||||||||
Net realized capital gain (loss), net of taxes and interest maintenance reserve | 142 | 1,053 | (490) | |||||||||||||||||
Net income | $ | 739 | 543 | 769 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
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2020 | 2019 | 2018 | ||||||||||||||||||
Capital and surplus at beginning of year | $ | 7,954 | 6,576 | 6,011 | ||||||||||||||||
Change in accounting principle, net of tax (Note 3) | — | — | (86) | |||||||||||||||||
Change in reserve on account of change in valuation basis (Note 3) | (1) | — | 342 | |||||||||||||||||
Adjusted balance at beginning of year | 7,953 | 6,576 | 6,267 | |||||||||||||||||
Net income | 739 | 543 | 769 | |||||||||||||||||
Change in unrealized capital gain (loss) | (61) | 719 | (230) | |||||||||||||||||
Change in net deferred income tax | 42 | 330 | (121) | |||||||||||||||||
Change in asset valuation reserve | (88) | (131) | (38) | |||||||||||||||||
Dividends paid to parent | (750) | (325) | — | |||||||||||||||||
Change in unamortized gain on reinsurance transactions | (162) | 248 | (76) | |||||||||||||||||
Other changes in capital and surplus | (12) | (6) | 5 | |||||||||||||||||
Capital and surplus at end of year | $ | 7,661 | 7,954 | 6,576 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
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2020 | 2019 | 2018 | ||||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Premiums and annuity considerations, net | $ | 10,543 | 13,030 | 12,194 | ||||||||||||||||
Net investment income | 4,990 | 5,000 | 4,652 | |||||||||||||||||
Commissions and expense allowances on reinsurance ceded | 36 | 86 | 86 | |||||||||||||||||
Fees from separate accounts | 567 | 613 | 676 | |||||||||||||||||
Other | 217 | 71 | 96 | |||||||||||||||||
Cash provided by operating activities | 16,353 | 18,800 | 17,704 | |||||||||||||||||
Benefits and expenses paid: | ||||||||||||||||||||
Benefit and loss-related payments | 9,513 | 9,469 | 8,404 | |||||||||||||||||
Net transfers to (from) separate accounts | 1,128 | 5,534 | (2,305) | |||||||||||||||||
Commissions, expenses paid, and aggregate write-ins for deductions | 1,727 | 1,881 | 1,800 | |||||||||||||||||
Income tax paid (benefit received), net | 290 | 338 | (79) | |||||||||||||||||
Change in unallocated remittances and items | (6) | 67 | (67) | |||||||||||||||||
Cash used in operating activities | 12,652 | 17,289 | 7,753 | |||||||||||||||||
Net cash provided by operating activities | 3,701 | 1,511 | 9,951 | |||||||||||||||||
Cash flow from investing activities: | ||||||||||||||||||||
Proceeds from investments sold, matured or repaid: | ||||||||||||||||||||
Bonds | 8,935 | 15,892 | 9,476 | |||||||||||||||||
Stocks | 147 | 113 | 172 | |||||||||||||||||
Mortgage loans | 1,024 | 1,356 | 617 | |||||||||||||||||
Other invested assets | 60 | 32 | 13 | |||||||||||||||||
Derivatives | 861 | 1,429 | — | |||||||||||||||||
Miscellaneous proceeds | 2 | 1,572 | 559 | |||||||||||||||||
Cash provided by investing activities | 11,029 | 20,394 | 10,837 | |||||||||||||||||
Cost of investments acquired: | ||||||||||||||||||||
Bonds | 10,885 | 15,976 | 16,310 | |||||||||||||||||
Stocks | 230 | 145 | 175 | |||||||||||||||||
Mortgage loans | 2,482 | 2,283 | 2,111 | |||||||||||||||||
Real estate | 10 | 11 | 9 | |||||||||||||||||
Other invested assets | 156 | 192 | 189 | |||||||||||||||||
Derivatives | — | — | 547 | |||||||||||||||||
Miscellaneous applications | 485 | 812 | 611 | |||||||||||||||||
Cash used in investing activities | 14,248 | 19,419 | 19,952 | |||||||||||||||||
Net increase in policy loans and premium notes | 21 | 20 | 30 | |||||||||||||||||
Net cash (used in) provided by investing activities | (3,240) | 955 | (9,145) | |||||||||||||||||
Cash flow from financing and miscellaneous activities: | ||||||||||||||||||||
Change in borrowed money | 500 | 500 | — | |||||||||||||||||
Payments on deposit-type contracts and other insurance liabilities, net of deposits | (1,290) | (1,333) | (1,250) | |||||||||||||||||
Dividends paid to parent | (750) | (325) | — | |||||||||||||||||
Other cash provided (used) | 121 | (366) | 37 | |||||||||||||||||
Net cash used in financing and miscellaneous activities | (1,419) | (1,524) | (1,213) | |||||||||||||||||
Net change in cash, cash equivalents, and short-term investments | (958) | 942 | (407) | |||||||||||||||||
Cash, cash equivalents, and short-term investments: | ||||||||||||||||||||
Beginning of year | 1,868 | 926 | 1,333 | |||||||||||||||||
End of year | $ | 910 | 1,868 | 926 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
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2019 | |||||
Initial book value of the IRS created from inception until the designation of hedge accounting | $ | 287 | |||
Amounts offsetting changes in the AG43 reserve for the hedged item due to interest rate movements | (62) | ||||
Net losses from cumulative IRS sales after designation of hedge accounting (1) | 608 | ||||
Net receivable/payable interest accrued | (2) | ||||
Cumulative amortization | (249) | ||||
Carrying value of IRS hedge adjustment (2) | $ | 582 | |||
(1) In 2017, the Company restruck a portion of its IRS portfolio that hedges variable annuity liabilities. The restrike transaction included selling a portion of the Company's IRS portfolio to consolidate its net positions. As a result of the transaction, the net losses disclosed here were recorded within the IRS hedge adjustment in line with hedge accounting treatment as discussed above. | |||||
(2) The carrying value of the IRS hedge adjustment differs from that disclosed in Note 6 as the amount disclosed in Note 6 has been adjusted for IRS positions no longer held by the Company. |
Hedge adjustment balance at January 01, 2020 | 582 | ||||
Amount amortized into earnings at December 31, 2020 | (69) | ||||
Hedge adjustment balance at December 31, 2020 | $513 |
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Net deferred balance as of January 1, 2020 | $ | 1,435 | |||
Amortization | (214) | ||||
Additional amounts deferred | 623 | ||||
Net deferred balance as of December 31, 2020 | $ | 1,844 |
Amortization year | Deferred assets | Deferred liabilities | |||||||||
2021 | $ | (37) | $ | 244 | |||||||
2022 | (37) | 244 | |||||||||
2023 | (37) | 244 | |||||||||
2024 | (38) | 244 | |||||||||
2025 | (38) | 244 | |||||||||
2026 | (38) | 243 | |||||||||
2027 | (38) | 243 | |||||||||
2028 | (38) | 243 | |||||||||
2029 | (38) | 243 | |||||||||
2030 | (34) | $ | 25 | ||||||||
Total | $ | (373) | $ | 2,217 |
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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 |
2019 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
U.S. government | $ | 3,014 | 123 | 8 | 3,129 | |||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government | 3 | — | — | 3 | ||||||||||||||||||||||
States and political subdivisions | 9,722 | 1,486 | 3 | 11,205 | ||||||||||||||||||||||
Foreign governments | 777 | 54 | 1 | 830 | ||||||||||||||||||||||
Corporate securities | 70,048 | 7,385 | 68 | 77,365 | ||||||||||||||||||||||
Mortgage-backed securities | 15,313 | 612 | 16 | 15,909 | ||||||||||||||||||||||
Collateralized debt obligations | 16 | 13 | — | 29 | ||||||||||||||||||||||
Total bonds | 98,893 | 9,673 | 96 | 108,470 | ||||||||||||||||||||||
Common stocks | 144 | 10 | 1 | 153 | ||||||||||||||||||||||
Preferred stocks | 29 | 2 | — | 31 | ||||||||||||||||||||||
Total | $ | 99,066 | 9,685 | 97 | 108,654 |
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Carrying value | Fair value | ||||||||||
Due in 1 year or less | $ | 1,812 | $ | 1,828 | |||||||
Due after 1 year through 5 years | 12,471 | 13,585 | |||||||||
Due after 5 years through 10 years | 20,310 | 23,149 | |||||||||
Due after 10 years through 20 years | 23,496 | 29,053 | |||||||||
Due after 20 years | 25,638 | 31,330 | |||||||||
No maturity date | 1,243 | 1,412 | |||||||||
Mortgage-backed and other structured securities | 14,143 | 15,378 | |||||||||
Total bonds and other assets receiving bond treatment | $ | 99,113 | $ | 115,735 |
2020 | 2019 | 2018 | ||||||||||||||||||
Proceeds from sales | $ | 8,677 | 15,892 | 9,476 | ||||||||||||||||
Gross gains | 162 | 75 | 94 | |||||||||||||||||
Gross losses | 28 | 34 | 63 |
2020 | 2019 | 2018 | ||||||||||||||||||
Proceeds from sales | $ | 147 | 111 | 172 | ||||||||||||||||
Gross gains | 3 | 2 | 5 | |||||||||||||||||
Gross losses | 2 | 2 | — |
2020 | 2019 | 2018 | ||||||||||||||||||
Proceeds from sales | $ | — | 2 | — | ||||||||||||||||
Gross gains | — | — | — | |||||||||||||||||
Gross losses | — | — | — |
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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 | |||||||||||||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
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 |
2019 | ||||||||||||||||||||||||||||||||||||||
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 | $ | 292 | 6 | 292 | 2 | 584 | 8 | |||||||||||||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Foreign government | 123 | 1 | — | — | 123 | 1 | ||||||||||||||||||||||||||||||||
States and political subdivisions | 87 | 3 | — | — | 87 | 3 | ||||||||||||||||||||||||||||||||
Corporate securities | 2,089 | 27 | 1,250 | 41 | 3,339 | 68 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 1,241 | 12 | 140 | 4 | 1,381 | 16 | ||||||||||||||||||||||||||||||||
Total bonds | 3,832 | 49 | 1,682 | 47 | 5,514 | 96 | ||||||||||||||||||||||||||||||||
Common stock | 18 | 1 | 6 | — | 24 | 1 | ||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 3,850 | 50 | 1,688 | 47 | 5,538 | 97 |
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2020 | 2019 | 2018 | |||||||||||||||
Bonds | $ | (120) | 13 | (81) | |||||||||||||
Stocks | 2 | — | 5 | ||||||||||||||
Mortgage Loans | (34) | — | — | ||||||||||||||
Derivatives | 202 | 1,062 | (469) | ||||||||||||||
Other | (1) | (2) | (1) | ||||||||||||||
Total realized capital gains (losses) | 49 | 1,073 | (546) | ||||||||||||||
Income tax benefit (expense) on net realized gains (losses) | — | 11 | (4) | ||||||||||||||
Total realized capital gains (losses), net of taxes | 49 | 1,084 | (550) | ||||||||||||||
Net gains (losses) transferred to IMR, net of taxes | (93) | 31 | (60) | ||||||||||||||
Net realized gains (losses), net of taxes and IMR | $ | 142 | 1,053 | (490) |
2020 | 2019 | 2018 | |||||||||||||||
Interest: | |||||||||||||||||
Bonds | $ | 4,189 | 4,319 | 4,090 | |||||||||||||
Mortgage loans on real estate | 647 | 617 | 561 | ||||||||||||||
Policy loans | 12 | 11 | 11 | ||||||||||||||
Cash, cash equivalents, and short-term investments | 7 | 23 | 25 | ||||||||||||||
Dividends: | |||||||||||||||||
Stocks | 7 | 7 | 7 | ||||||||||||||
Investment in subsidiaries | 50 | 67 | 70 | ||||||||||||||
Rental income on real estate | 20 | 13 | 12 | ||||||||||||||
Derivatives | (14) | (109) | (102) | ||||||||||||||
Other | 47 | (7) | (8) | ||||||||||||||
Gross investment income | 4,965 | 4,941 | 4,666 | ||||||||||||||
Investment expenses | (138) | (146) | (126) | ||||||||||||||
Net investment income before amortization of IMR | 4,827 | 4,795 | 4,540 | ||||||||||||||
Amortization of IMR | 37 | 44 | 53 | ||||||||||||||
Net investment income | $ | 4,864 | 4,839 | 4,593 |
2020 | 2019 | ||||||||||||||||
Concentration Amount | Concentration % | Concentration Amount | Concentration % | ||||||||||||||
California | $ | 3,356 | 22.6 | % | $ | 3,364 | 24.5 | % |
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Concentration Amount | Concentration % | Concentration Amount | Concentration % | ||||||||||||||
California | $ | 353 | 46.3 | % | $ | 240 | 49.2 % | ||||||||||
Florida | $ | 80 | 10.4 | % | 51 | 10.4 % |
2020 | 2019 | ||||||||||||||||
Residential | Commercial | Residential | Commercial | ||||||||||||||
Current | $ | 693 | 14,813 | 481 | 13,728 | ||||||||||||
30-59 Days Past Due | 17 | — | — | — | |||||||||||||
60-89 Days Past Due | 2 | — | 1 | — | |||||||||||||
90-179 Days Past Due | 4 | — | 7 | — | |||||||||||||
180+ Days Past Due | 47 | 58 | — | — | |||||||||||||
Total | $ | 763 | 14,871 | 489 | 13,728 |
2020 | 2019 | ||||||||||||||||
Residential | Commercial | Residential | Commercial | ||||||||||||||
Accruing Interest 90-179 Days Past Due | |||||||||||||||||
Recorded Investment | $ | 2 | — | 7 | — | ||||||||||||
Interest Accrued | — | — | — | — | |||||||||||||
Accruing Interest 180+ Days Past Due | |||||||||||||||||
Recorded Investment | — | — | — | — | |||||||||||||
Interest Accrued | — | — | — | — |
33 of 67 |
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% | $ | 620 | 52 | 73 | 3,992 | 4,737 | 31.9 | % | |||||||||||||||||||||||||||
50% – 60% | 359 | 132 | 770 | 4,477 | 5,738 | 38.6 | % | ||||||||||||||||||||||||||||
60% – 70% | 582 | 272 | 905 | 2,288 | 4,047 | 27.2 | % | ||||||||||||||||||||||||||||
70% – 80% | 35 | 102 | 163 | — | 300 | 2.0 | % | ||||||||||||||||||||||||||||
80% – 90% | — | 21 | — | — | 21 | 0.1 | % | ||||||||||||||||||||||||||||
90% – 100% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
Greater than 100% | 3 | 25 | — | — | 28 | 0.2 | % | ||||||||||||||||||||||||||||
Total | $ | 1,599 | 604 | 1,911 | 10,757 | 14,871 | 100.0 | % |
Debt Service Coverage Ratios | |||||||||||||||||||||||||||||||||||
2019: | 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% | $ | 4,805 | 146 | 39 | 30 | 5,020 | 36.6 | % | |||||||||||||||||||||||||||
50% – 60% | 3,805 | 651 | 2 | 142 | 4,600 | 33.5 | % | ||||||||||||||||||||||||||||
60% – 70% | 2,536 | 1,016 | 113 | 33 | 3,698 | 26.9 | % | ||||||||||||||||||||||||||||
70% – 80% | 157 | 107 | 16 | 36 | 316 | 2.3 | % | ||||||||||||||||||||||||||||
80% – 90% | 54 | 8 | — | 29 | 91 | 0.7 | % | ||||||||||||||||||||||||||||
90% – 100% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
Greater than 100% | 3 | — | — | — | 3 | — | % | ||||||||||||||||||||||||||||
Total | $ | 11,360 | 1,928 | 170 | 270 | 13,728 | 100.0 | % |
34 of 67 |
2020 | 2019 | ||||||||||||||||||||||
Total | Percent of Total | Total | Percent of Total | ||||||||||||||||||||
Loan-to-value ratios: | |||||||||||||||||||||||
Below 70% | $ | 165 | 21.6 | % | $ | 111 | 22.7 | % | |||||||||||||||
71% to 80% | 381 | 49.9 | % | 178 | 36.4 | % | |||||||||||||||||
81% to 90% | 206 | 27.0 | % | 175 | 35.8 | % | |||||||||||||||||
91% to 95% | 12 | 1.6 | % | 25 | 5.1 | % | |||||||||||||||||
Above 95% | — | — | % | — | — | % | |||||||||||||||||
Total | $ | 764 | 100.0 | % | $ | 489 | 100.0 | % |
Undiscounted Future Premium Commitments | Derivative FV with Premium Commitments | Derivative FV Excluding Impact of Future Settled Premiums | |||||||||
As of December 31, 2019 | $ | (8) | — | 9 | |||||||
As of December 31, 2020 | — | — | — |
35 of 67 |
36 of 67 |
2020 | 2019 | |||||||||||||||||||||||||||||||||||||
Gross Fair Value | Gross Fair Value | |||||||||||||||||||||||||||||||||||||
Notional (1) | Assets | Liabilities | Notional (1) | Assets | Liabilities | |||||||||||||||||||||||||||||||||
Cash flow hedging instruments | ||||||||||||||||||||||||||||||||||||||
Foreign currency swaps | $ | 1,341 | 56 | (76) | 1,271 | 92 | (16) | |||||||||||||||||||||||||||||||
IRS(2) | — | — | — | 3,491 | — | — | ||||||||||||||||||||||||||||||||
Total cash flow hedging instruments | $ | 56 | (76) | 92 | (16) | |||||||||||||||||||||||||||||||||
Fair value hedging instruments | ||||||||||||||||||||||||||||||||||||||
IRS | $ | 2,709 | 472 | (40) | — | — | — | |||||||||||||||||||||||||||||||
Total fair value hedging instruments | $ | 472 | (40) | $ | — | — | ||||||||||||||||||||||||||||||||
Nonqualifying hedging instruments | ||||||||||||||||||||||||||||||||||||||
OTC options | $ | 51,430 | 3,433 | (3,013) | 87,987 | 2,257 | (1,958) | |||||||||||||||||||||||||||||||
ETO | 15,224 | 136 | (96) | 8,151 | 31 | (41) | ||||||||||||||||||||||||||||||||
TBA securities | 1,331 | 1 | (1) | 1,331 | — | (1) | ||||||||||||||||||||||||||||||||
IRS | 2,631 | 9 | (18) | 1,049 | 10 | (20) | ||||||||||||||||||||||||||||||||
Futures | 19,312 | — | — | 26,776 | — | — | ||||||||||||||||||||||||||||||||
TRS | 11,653 | 7 | (18) | 8,148 | 1 | (13) | ||||||||||||||||||||||||||||||||
Total nonqualifying hedging instruments | 3,586 | (3,146) | 2,299 | (2,033) | ||||||||||||||||||||||||||||||||||
Total derivative instruments | $ | 4,114 | (3,262) | 2,391 | (2,049) | |||||||||||||||||||||||||||||||||
(1) Notional amounts are presented on an absolute basis. | ||||||||||||||||||||||||||||||||||||||
(2) The IRS amounts subject to SSAP No. 86 hedge accounting represent amounts that existed when hedge accounting was designated and still exist as of the end of the reporting period. The fair values for such instruments are not included herein as they are not recorded on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. |
37 of 67 |
Fair Value | ||||||||||||||
2020 | 2019 | |||||||||||||
Cash | ||||||||||||||
Open | 2,587 | 2,337 | ||||||||||||
30 days or less | — | — | ||||||||||||
31 to 60 days | — | — | ||||||||||||
61 to 90 days | — | — | ||||||||||||
Greater than 90 days | — | — | ||||||||||||
Subtotal | 2,587 | 2,337 | ||||||||||||
Securities received | 86 | 328 | ||||||||||||
Total collateral received | $ | 2,673 | 2,665 |
2020 | 2019 | |||||||||||||||||||||||||
Amortized cost | Fair value | Amortized cost | Fair value | |||||||||||||||||||||||
Open | — | — | — | — | ||||||||||||||||||||||
30 days or less | 950 | 950 | 1,070 | 1,070 | ||||||||||||||||||||||
31 to 60 days | 955 | 955 | 548 | 548 | ||||||||||||||||||||||
61 to 90 days | 66 | 66 | — | — | ||||||||||||||||||||||
91 to 120 days | — | — | 66 | 66 | ||||||||||||||||||||||
121 to 180 days | 143 | 143 | 344 | 344 | ||||||||||||||||||||||
181 to 365 days | 473 | 473 | 309 | 309 | ||||||||||||||||||||||
Greater than 1 year | — | — | — | — | ||||||||||||||||||||||
Total collateral reinvested | $ | 2,587 | 2,587 | 2,337 | 2,337 |
2020 | 2019 | ||||||||||
Cash and cash equivalents | $ | 1,630 | 1,339 | ||||||||
Short-term investments | 957 | 998 | |||||||||
Total | $ | 2,587 | 2,337 |
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As of year end | 2020 | 2019 | ||||||||||||||||||
1. Maturity | ||||||||||||||||||||
a. Overnight | $ | 430 | 1,482 | |||||||||||||||||
b. 2 Days to 1 Week | — | — | ||||||||||||||||||
2. Collateral Pledged and Securities Acquired Under Repo | ||||||||||||||||||||
a. Cash Collateral Pledged - Secured Borrowing | $ | 430 | 1,482 | |||||||||||||||||
b. Fair Value of Securities Acquired Under Repo - Secured Borrowing | 435 | 1,494 |
Maximum Amount | 2020 | 2019 | ||||||||||||||||||
1. Maturity | ||||||||||||||||||||
a. Overnight | $ | 2,878 | 1,482 | |||||||||||||||||
b. 2 Days to 1 Week | — | |||||||||||||||||||
2. Collateral Pledged and Securities Acquired Under Repo | ||||||||||||||||||||
a. Cash Collateral Pledged - Secured Borrowing | $ | 2,878 | 1,482 | |||||||||||||||||
b. Fair Value of Securities Acquired Under Repo - Secured Borrowing | 2,906 | 1,494 |
SCA Name | Gross Asset | Non-Admitted Asset | Net Admitted Assets | NAIC Filing Date | NAIC Filing Type | NAIC Filing Balance | Re-submission Required? | |||||||||||||||||||||||||||||||||||||
AZLPF | $ | 777 | — | 777 | 6/10/2020 | S2 | 792 | N | ||||||||||||||||||||||||||||||||||||
Total | $ | 777 | — | 777 | XXX | XXX | 792 | XXX |
2020 | 2019 | |||||||||||||
Carrying value | $ | 1,336 | 875 | |||||||||||
Fair value | 1,736 | 1,118 |
2020 | 2019 | |||||||||||||
Carrying value | $ | 1,994 | 1,745 | |||||||||||
Fair value | 2,254 | 2,244 |
39 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 | $ | 2,673 | 2,665 | 8 | 2,673 | 1.5 | % | 1.5 | % | |||||||||||||||||||||||||||||
FHLB Capital Stock | 70 | 50 | 20 | 70 | — | — | ||||||||||||||||||||||||||||||||
On deposit with states | 4 | 4 | — | 4 | — | — | ||||||||||||||||||||||||||||||||
On deposit with other regulatory bodies | 19 | 26 | (7) | 19 | — | — | ||||||||||||||||||||||||||||||||
Pledged as collateral to FHLB (including assets backing funding agreements) | 1,336 | 875 | 461 | 1,336 | 0.8 | 0.8 | ||||||||||||||||||||||||||||||||
Derivative collateral | 2,266 | 2,063 | 203 | 2,266 | 1.3 | 1.3 | ||||||||||||||||||||||||||||||||
Total restricted assets | $ | 6,368 | 5,683 | 685 | 6,368 | 3.6 | % | 3.6 | % |
2020 | 2019 | ||||||||||||||||||||||
Number of Securities | Aggregate Book Adjusted Carrying Value | Aggregate Fair Value | Number of Securities | Aggregate Book Adjusted Carrying Value | Aggregate Fair Value | ||||||||||||||||||
Bonds | — | $ | — | — | 1 | $ | 40 | 44 | |||||||||||||||
Loan-backed and structured securities | 1 | 1 | 1 | — | — | — | |||||||||||||||||
Total | 1 | $ | 1 | 1 | 1 | $ | 40 | 44 |
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 net asset value (NAV) that are included in Level 2 within this table. |
2019 | ||||||||||||||||||||||||||
Level 1 | Level 2 (a) | Level 3 | Total | |||||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||||||||
Common stocks | 101 | — | 1 | 102 | ||||||||||||||||||||||
Derivative assets | 31 | 2,394 | 1 | 2,426 | ||||||||||||||||||||||
Separate account assets | 22,766 | 3,265 | — | 26,031 | ||||||||||||||||||||||
Total assets reported at fair value | 22,898 | 5,659 | 2 | 28,559 | ||||||||||||||||||||||
Liabilities at fair value: | ||||||||||||||||||||||||||
Derivative liabilities | 41 | 2,014 | 13 | 2,068 | ||||||||||||||||||||||
Separate account derivative liabilities | — | 2,531 | — | 2,531 | ||||||||||||||||||||||
Total liabilities reported at fair value | $ | 41 | 4,545 | 13 | 4,599 | |||||||||||||||||||||
(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, 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) |
January 1, 2019 | 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, 2019 | |||||||||||||||||
Bonds | $ | 3 | — | (3) | — | — | — | ||||||||||||||||
Common stocks | 2 | — | — | — | (1) | 1 | |||||||||||||||||
TRS assets | 96 | — | — | 633 | (95) | (633) | 1 | ||||||||||||||||
Total Level 3 Assets | 101 | — | — | 630 | (95) | (634) | 2 | ||||||||||||||||
TRS liabilities | (23) | — | — | (129) | 10 | 129 | (13) | ||||||||||||||||
Total Level 3 Liabilities | $ | (23) | — | — | (129) | 10 | 129 | (13) |
43 of 67 |
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 |
2019 | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Aggregate Fair Value | Admitted Assets/ Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||
Bonds | $ | 106,848 | 97,269 | 3,864 | 87,898 | 15,086 | ||||||||||||||||||||||||||
Preferred stocks, unaffiliated | 31 | 29 | — | — | 31 | |||||||||||||||||||||||||||
Common stocks, unaffiliated | 152 | 152 | 101 | — | 51 | |||||||||||||||||||||||||||
Mortgage loans on real estate | 15,241 | 14,217 | — | — | 15,241 | |||||||||||||||||||||||||||
Cash equivalents | 1,863 | 1,863 | 361 | 1,502 | — | |||||||||||||||||||||||||||
Short-term investments | 22 | 22 | — | 22 | — | |||||||||||||||||||||||||||
Derivative assets | 2,426 | 2,391 | 31 | 2,394 | 1 | |||||||||||||||||||||||||||
Securities lending reinvested collateral assets | 2,337 | 2,337 | — | 2,337 | — | |||||||||||||||||||||||||||
Other invested assets | 655 | 655 | — | 25 | 630 | |||||||||||||||||||||||||||
COLI | 625 | 625 | — | 625 | — | |||||||||||||||||||||||||||
Separate account assets | 34,959 | 34,638 | 23,090 | 11,869 | — | |||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Deposit-type contracts | $ | 5,380 | 4,936 | — | — | 5,380 | ||||||||||||||||||||||||||
Other investment contracts | 102,903 | 93,649 | — | — | 102,903 | |||||||||||||||||||||||||||
Borrowed money | 1,006 | 1,002 | — | — | 1,006 | |||||||||||||||||||||||||||
Derivative liabilities | 2,068 | 2,049 | 41 | 2,014 | 13 | |||||||||||||||||||||||||||
Payable for securities lending | 2,337 | 2,337 | — | 2,337 | — | |||||||||||||||||||||||||||
Payable for securities | 147 | 147 | — | — | 147 | |||||||||||||||||||||||||||
Other liabilities | (1,436) | (241) | — | (1,436) | — | |||||||||||||||||||||||||||
Separate account liabilities | 34,959 | 34,638 | 23,090 | 11,869 | — | |||||||||||||||||||||||||||
(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. |
46 of 67 |
2020 | 2019 | |||||||
Bonds | 80.0 | % | 64.0 | % | ||||
Stocks | 20.0 | % | 36.0 | % |
47 of 67 |
2021 | $ | 10 | |||
2022 | 11 | ||||
2023 | 12 | ||||
2024 | 8 | ||||
2025 | — | ||||
2026 and beyond | — | ||||
Total | $ | 41 |
48 of 67 |
2020 | 2019 | ||||||||||
Servers, computers and peripherals depreciation | — | 1 | |||||||||
Software amortization | 7 | 8 | |||||||||
Net EDP balance, by major classes of assets: | |||||||||||
Servers, computers and peripherals | 2 | 1 | |||||||||
Software | 38 | 31 | |||||||||
Net EDP balance | 40 | 32 | |||||||||
Nonadmitted | (38) | (31) | |||||||||
Net admitted EDP balance | $ | 2 | 1 |
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 |
December 31, 2019 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets | $ | 922 | 21 | 943 | |||||||||||||
Statutory valuation allowance adjustments | — | — | — | ||||||||||||||
Adjusted gross deferred tax assets | 922 | 21 | 943 | ||||||||||||||
Deferred tax assets nonadmitted | — | — | — | ||||||||||||||
Subtotal net admitted deferred tax assets | 922 | 21 | 943 | ||||||||||||||
Deferred tax liabilities | (713) | (6) | (719) | ||||||||||||||
Net admitted deferred tax assets (liabilities) | $ | 209 | 15 | 224 |
49 of 67 |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets | $ | (11) | 31 | 20 | |||||||||||||
Statutory valuation allowance adjustments | — | — | — | ||||||||||||||
Adjusted gross deferred tax assets | (11) | 31 | 20 | ||||||||||||||
Deferred tax assets nonadmitted | — | — | — | ||||||||||||||
Subtotal net admitted deferred tax assets | (11) | 31 | 20 | ||||||||||||||
Deferred tax liabilities | 29 | (1) | 28 | ||||||||||||||
Net admitted deferred tax assets (liabilities) | $ | 18 | 30 | 48 |
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 |
December 31, 2019 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | 5 | 5 | |||||||||||||
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.) | 473 | 16 | 489 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii) | N/A | N/A | 1,159 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii | 473 | 16 | 489 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c) | 449 | — | 449 | ||||||||||||||
Deferred tax assets admitted | $ | 922 | 21 | 943 |
50 of 67 |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | (2) | (2) | |||||||||||||
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.) | (54) | 33 | (21) | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii) | N/A | N/A | (52) | ||||||||||||||
Lesser of 11.b.i or 11.b.ii | (54) | 33 | (21) | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c) | 43 | — | 43 | ||||||||||||||
Deferred tax assets admitted | $ | (11) | 31 | 20 |
December 31 | ||||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||||
Ratio percentage used to determine recovery period and threshold limitation amount | 705 | % | 756 | % | (51) | % | ||||||||||||||||||||
Amount of adjusted capital and surplus used to determine recovery period threshold limitation | $ | 7,386 | 7,729 | (343) |
December 31, 2020 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Net admitted adjusted gross DTAs - (percentage of total net admitted adjusted gross DTAs) | — | % | 93.7 | % | 93.7 | % |
December 31, 2019 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Net admitted adjusted gross DTAs - (percentage of total net admitted adjusted gross DTAs) | — | % | 77.6 | % | 77.6 | % |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Net admitted adjusted gross DTAs - (percentage of total net admitted adjusted gross DTAs) | — | % | 16.1 | % | 16.1 | % |
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December 31 | 2020-2019 Change | 2019-2018 Change | |||||||||||||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||||||||||||||
Current year federal tax expense (benefit) - ordinary income | $ | 18 | 773 | (51) | (755) | 824 | |||||||||||||||||||||||
Current year foreign tax expense (benefit) - ordinary income | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 18 | 773 | (51) | (755) | 824 | ||||||||||||||||||||||||
Current year tax expense - net realized capital gains (losses) | — | (11) | 4 | 11 | (15) | ||||||||||||||||||||||||
Federal and foreign income taxes incurred | $ | 18 | 762 | (47) | (744) | 809 |
December 31 | ||||||||||||||||||||
Deferred tax assets | 2020 | 2019 | Change | |||||||||||||||||
Ordinary: | ||||||||||||||||||||
Unrealized losses | $ | — | 11 | (11) | ||||||||||||||||
Deferred acquisition costs | 169 | 153 | 16 | |||||||||||||||||
Expense accruals | 63 | 72 | (9) | |||||||||||||||||
Policyholder reserves | 666 | 676 | (10) | |||||||||||||||||
Fixed assets | — | — | — | |||||||||||||||||
Nonadmitted assets | 13 | 10 | 3 | |||||||||||||||||
Subtotal | 911 | 922 | (11) | |||||||||||||||||
Statutory valuation allowance adjustment | — | — | — | |||||||||||||||||
Nonadmitted ordinary deferred tax assets | — | — | — | |||||||||||||||||
Admitted ordinary tax assets | 911 | 922 | (11) | |||||||||||||||||
Capital: | ||||||||||||||||||||
Impaired assets | 51 | 20 | 31 | |||||||||||||||||
Unrealized losses | 1 | 1 | — | |||||||||||||||||
Subtotal | 52 | 21 | 31 | |||||||||||||||||
Statutory valuation allowance adjustment | — | — | — | |||||||||||||||||
Nonadmitted capital deferred tax assets | — | — | — | |||||||||||||||||
Admitted capital deferred tax assets | 52 | 21 | 31 | |||||||||||||||||
Admitted deferred tax assets | $ | 963 | 943 | 20 |
December 31 | ||||||||||||||||||||
Deferred tax liabilities | 2020 | 2019 | Change | |||||||||||||||||
Ordinary: | ||||||||||||||||||||
Investments | $ | (54) | (56) | 2 | ||||||||||||||||
Fixed assets | (5) | (5) | — | |||||||||||||||||
Policyholder reserves | (445) | (534) | 89 | |||||||||||||||||
Software capitalization | (7) | (5) | (2) | |||||||||||||||||
Unrealized gains | (79) | (113) | 34 | |||||||||||||||||
Other | (94) | — | (94) | |||||||||||||||||
Subtotal | (684) | (713) | 29 | |||||||||||||||||
Capital: | ||||||||||||||||||||
Unrealized gains | (6) | (6) | — | |||||||||||||||||
Subtotal | (6) | (6) | — | |||||||||||||||||
Deferred tax liabilities | $ | (690) | (719) | 29 | ||||||||||||||||
Net deferred tax assets (liabilities) | $ | 273 | 224 | 49 |
52 of 67 |
December 31 | |||||||||||||||||
2020 | 2019 | Change | |||||||||||||||
Net deferred tax assets (liabilities) | $ | 273 | 224 | 49 | |||||||||||||
Statutory valuation allowance adjustment | — | — | |||||||||||||||
Net deferred tax assets (liabilities) after statutory valuation allowance | 273 | 224 | 49 | ||||||||||||||
Tax effect of unrealized gains (losses) | 153 | 160 | (7) | ||||||||||||||
Statutory valuation allowance adjustment allocated to unrealized gains (losses) | — | — | — | ||||||||||||||
Change in net deferred income tax | $ | 42 |
53 of 67 |
December 31, 2020 | December 31, 2019 | December 31, 2018 | |||||||||||||||
Federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Amortization of IMR | (1.3) | (3.6) | (0.9) | ||||||||||||||
Dividends received deduction | (1.7) | (4.2) | (0.8) | ||||||||||||||
Nondeductible expenses | — | 0.9 | 0.2 | ||||||||||||||
Affiliated LLC income | (2.4) | — | — | ||||||||||||||
COLI | (1.0) | (5.5) | 0.3 | ||||||||||||||
Tax hedges | 0.2 | 65.8 | (6.5) | ||||||||||||||
Tax hedge reclassification | 6.8 | 84.7 | (8.2) | ||||||||||||||
Tax credits | (7.2) | (13.6) | (2.1) | ||||||||||||||
Prior period adjustments | (0.6) | (0.4) | (0.4) | ||||||||||||||
Change in deferred taxes on impairments | (5.0) | 3.6 | (1.5) | ||||||||||||||
Change in deferred taxes on nonadmitted assets | (0.6) | (0.7) | 0.1 | ||||||||||||||
Reinsurance | (5.5) | 19.8 | (1.3) | ||||||||||||||
Change in valuation | — | — | 5.9 | ||||||||||||||
NOL Carryback Benefit | (12.2) | — | — | ||||||||||||||
Tax Contingencies | 5.5 | — | — | ||||||||||||||
Realized Capital Gains Tax | (0.1) | — | — | ||||||||||||||
Other | — | 0.6 | (0.1) | ||||||||||||||
Effective tax rate | (4.1) | % | 168.4 | % | 5.7 | % | |||||||||||
Federal and foreign income taxes incurred (1) | 2.9 | % | 293.7 | % | (4.3) | % | |||||||||||
Realized Capital Gains Tax | (0.1) | — | — | ||||||||||||||
Change in net deferred tax | (6.9) | (125.3) | 10.0 | ||||||||||||||
Effective tax rate | (4.1) | % | 168.4 | % | 5.7 | % | |||||||||||
(1) Prior to 2020, tax on capital gains (losses) was excluded from federal and foreign income taxes incurred and detailed in Note 5(c). |
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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. | Fireman’s Fund Insurance Company | ||||
Allianz Technology of America, Inc. | Fireman’s Fund Indemnity Corporation | ||||
Allianz Renewable Energy Partners of America LLC | National Surety Corporation | ||||
Allianz Renewable Energy Partners of America 2 LLC | Chicago Insurance Company | ||||
PFP Holdings, Inc. | Interstate Fire & Casualty Company | ||||
AZL PF Investments, Inc. | Associated Indemnity Corporation | ||||
Dresdner Kleinwort Pfandbriefe Investments II, Inc. | American Automobile Insurance Company | ||||
Allianz Fund Investments, Inc. | The American Insurance Company | ||||
Yorktown Financial Companies, Inc. | Allianz Risk Transfer, Inc. | ||||
Questar Capital Corporation | Allianz Risk Transfer (Bermuda), Ltd. | ||||
Questar Asset Management, Inc. | |||||
Questar Agency, Inc. |
2020 | 2019 | 2018 | ||||||||||||||||||
Balance at January 1, net of reinsurance recoverables of $654, $574, and $447, respectively | $ | 335 | 299 | 224 | ||||||||||||||||
Incurred related to: | ||||||||||||||||||||
Current year | 139 | 143 | 129 | |||||||||||||||||
Prior years | (46) | (24) | 16 | |||||||||||||||||
Total incurred | 93 | 119 | 145 | |||||||||||||||||
Paid related to: | ||||||||||||||||||||
Current year | 7 | 7 | 4 | |||||||||||||||||
Prior years | 84 | 76 | 66 | |||||||||||||||||
Total paid | 91 | 83 | 70 | |||||||||||||||||
Balance at December 31, net of reinsurance recoverables of $665, $654, and $574, respectively | $ | 337 | 335 | 299 |
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For the years ended December 31, | ||||||||||||||
Reduction in: | 2020 | 2019 | ||||||||||||
Aggregate reserves | $ | 6,636 | 6,620 | |||||||||||
Deposit-type contracts | 99 | 107 | ||||||||||||
Policy and contract claims | 29 | 24 |
Year ended | Direct amount | Ceded to other companies | Assumed from other companies | Net amount | ||||||||||||||||||||||
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 | |||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||
Life insurance in-force | $ | 41,321 | 27,914 | 65 | 13,472 | |||||||||||||||||||||
Premiums: | ||||||||||||||||||||||||||
Life | 895 | 84 | 1 | 812 | ||||||||||||||||||||||
Annuities | 11,318 | 358 | — | 10,960 | ||||||||||||||||||||||
Accident and health | 176 | 73 | 50 | 153 | ||||||||||||||||||||||
Total premiums | $ | 12,389 | 515 | 51 | 11,925 |
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57 of 67 |
2020 | Percentage of total | 2019 | Percentage of total | |||||||||||||||||||||||
Subject to discretionary withdrawal: | ||||||||||||||||||||||||||
With market value adjustment | $ | 43,198 | 31 | % | $ | 39,602 | 29 | % | ||||||||||||||||||
At book value less current surrender charges of 5% or more | 36,364 | 26 | 37,347 | 28 | ||||||||||||||||||||||
At market value | 21,361 | 14 | 22,389 | 16 | ||||||||||||||||||||||
Total with adjustment or at market value | 100,923 | 71 | 99,338 | 73 | ||||||||||||||||||||||
At book value without adjustment (minimal or no charge or adjustment) | 30,641 | 22 | 27,684 | 21 | ||||||||||||||||||||||
Not subject to discretionary withdrawal | 8,133 | 6 | 7,692 | 6 | ||||||||||||||||||||||
Total gross | 139,697 | 100 | % | 134,714 | 100 | % | ||||||||||||||||||||
Reinsurance ceded | 2,523 | 2,578 | ||||||||||||||||||||||||
Total net | $ | 137,174 | $ | 132,136 | ||||||||||||||||||||||
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: | $ | 6,776 |
Reconciliation of total annuity actuarial reserves and deposit fund liabilities: | 2020 | 2019 | ||||||||||||
Life, Accident and Health Annual Statement: | ||||||||||||||
Annuities, net (excluding supplementary contracts with life contingencies) | $ | 95,185 | 93,752 | |||||||||||
Supplemental contracts with life contingencies, net | 2,091 | 2,070 | ||||||||||||
Deposit-type contracts | 4,749 | 4,936 | ||||||||||||
Subtotal | 102,025 | 100,758 | ||||||||||||
Separate Accounts Annual Statement: | ||||||||||||||
Annuities, net (excluding supplementary contracts with life contingencies) | 35,137 | 31,348 | ||||||||||||
Supplemental contracts with life contingencies, net | 11 | 30 | ||||||||||||
Subtotal | 35,148 | 31,378 | ||||||||||||
Total annuity actuarial reserves and deposit fund liabilities | $ | 137,174 | 132,136 |
58 of 67 |
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 | |||||||
2019 | |||||||||||
General Account | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Universal life | $ | 875 | 874 | 882 | |||||||
Universal life with secondary guarantees | 62 | 54 | 162 | ||||||||
Indexed life | 4,496 | 3,872 | 3,913 | ||||||||
Other permanent cash value life insurance | 122 | 122 | 122 | ||||||||
Variable universal life | 3 | 3 | 3 | ||||||||
Not subject to discretionary withdrawal or no cash values: | |||||||||||
Term policies without cash value | XXX | XXX | 209 | ||||||||
Disability, active lives | XXX | XXX | 49 | ||||||||
Disability, disabled lives | XXX | XXX | 7 | ||||||||
Miscellaneous reserves | XXX | XXX | 56 | ||||||||
Total gross | 5,558 | 4,925 | 5,401 | ||||||||
Reinsurance ceded | 671 | 671 | 945 | ||||||||
Total net | $ | 4,886 | 4,254 | 4,456 | |||||||
The Company does not have any Life policies with guarantees in the separate account. | |||||||||||
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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 | |||||||
2019 | |||||||||||
Separate Account Nonguaranteed | Account Value | Cash Value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Variable universal life | $ | 18 | 17 | 17 | |||||||
Total gross | 18 | 17 | 17 | ||||||||
Reinsurance ceded | — | — | — | ||||||||
Total net | $ | 18 | 17 | 17 |
Reconciliation of total life actuarial reserves: | 2020 | 2019 | ||||||
Life, Accident, and Health Annual Statement: | ||||||||
Life insurance, net | $ | 5,210 | $ | 4,392 | ||||
Disability, active lives, net | 47 | 48 | ||||||
Disability, disabled lives, net | 1 | 2 | ||||||
Miscellaneous reserves, net | 14 | 15 | ||||||
Subtotal | 5,273 | 4,456 | ||||||
Separate Accounts Annual Statement: | ||||||||
Life insurance, net | 18 | 17 | ||||||
Subtotal | 18 | 17 | ||||||
Total life actuarial reserves | $ | 5,291 | $ | 4,473 |
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2020 | 2019 | ||||||||||||||||||||||||||||
Indexed | Nonindexed guaranteed reserve interest less than or equal to 4% | Non guaranteed separate accounts | Total | Indexed | Nonindexed guaranteed reserve interest less than or equal to 4% | Non guaranteed separate accounts | Total | ||||||||||||||||||||||
Premiums, considerations, or deposits | $ | — | — | 4,149 | 4,149 | $ | — | — | 1,277 | 1,277 | |||||||||||||||||||
Reserves for account, with assets at fair value | 21,574 | 21,574 | — | 2 | 22,457 | 22,459 | |||||||||||||||||||||||
Reserves for account, with assets at amortized cost | — | — | 13,592 | 13,592 | — | — | 8,936 | 8,936 | |||||||||||||||||||||
Total reserves | — | — | 35,166 | 35,166 | — | 2 | 31,393 | 31,395 | |||||||||||||||||||||
By withdrawal characteristics: | |||||||||||||||||||||||||||||
At book value without MV adjustment and with current surrender charge of 5% or more | — | — | 12,643 | 12,643 | — | — | 8,535 | 8,535 | |||||||||||||||||||||
At fair value | 21,535 | 21,535 | — | 2 | 22,427 | 22,429 | |||||||||||||||||||||||
At book value without MV adjustment and with current surrender charge of less than 5% | — | — | 959 | 959 | — | — | 401 | 401 | |||||||||||||||||||||
Subtotal | — | — | 35,137 | 35,137 | — | 2 | 31,363 | 31,365 | |||||||||||||||||||||
Not subject to discretionary withdrawal | — | — | 29 | 29 | — | — | 30 | 30 | |||||||||||||||||||||
Total | $ | — | — | 35,166 | 35,166 | $ | — | 2 | 31,393 | 31,395 |
2020 | 2019 | |||||||||||||||||||
Product/transaction | Legally insulated | Not legally insulated | Legally insulated | Not legally insulated | ||||||||||||||||
Variable Annuities | $ | 21,602 | — | 22,607 | — | |||||||||||||||
Variable Life | 19 | — | 18 | — | ||||||||||||||||
Variable Annuities (Non-Unitized Insulated) | 998 | — | 387 | — | ||||||||||||||||
Variable Annuities (Non-Unitized Non-Insulated) | — | 23,244 | — | 11,586 | ||||||||||||||||
Variable Annuities (MN MVA) | — | 38 | — | 37 | ||||||||||||||||
Fixed Annuities (MN MVA) | — | — | — | 3 | ||||||||||||||||
Total | $ | 22,619 | 23,282 | 23,012 | 11,626 |
61 of 67 |
2020 | 2019 | 2018 | |||||||||||||||
Transfers as reported in the Summary of Operations of the Separate Accounts Annual Statement: | |||||||||||||||||
Transfers to separate accounts | $ | 4,149 | 1,277 | 638 | |||||||||||||
Transfers from separate accounts | (2,689) | 3,975 | (2,649) | ||||||||||||||
Net transfers to (from) separate accounts | 1,460 | 5,252 | (2,011) | ||||||||||||||
Reconciling adjustments: | |||||||||||||||||
Other adjustments | — | 2 | 2 | ||||||||||||||
Transfers as reported in the Statutory Statements of Operations | $ | 1,460 | 5,254 | (2,009) |
62 of 67 |
2020 | 2019 | 2018 | ||||||||||||||||||
Allianz Investment Management, LLC | $ | 51 | 56 | 60 | ||||||||||||||||
ALFS | — | 2 | 10 | |||||||||||||||||
AZL PF Investments, Inc. | 50 | — | — | |||||||||||||||||
Yorktown | — | 9 | — | |||||||||||||||||
$ | 101 | 67 | 70 |
63 of 67 |
2020 | 2019 | 2018 | ||||||||||||||||||
Yorktown | $ | — | 1 | 6 | ||||||||||||||||
Allianz Investment Management U.S. LLC (AIM US) | 1 | — | — | |||||||||||||||||
InForce Solutions, LLC (1) | — | — | 3 | |||||||||||||||||
ALFS | 20 | 8 | — | |||||||||||||||||
$ | 21 | 9 | 9 | |||||||||||||||||
(1) InForce Solutions, LLC is a wholly owned subsidiary of AIIG, which is a wholly owned subsidiary of the Company; this capital contribution took the form of intercompany debt forgiveness. |
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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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Send an application or additional Purchase Payment with a check: | Send an application or general customer service without a check: | |
REGULAR MAIL | REGULAR MAIL | |
Allianz Life Insurance Company of North America NW5989 P.O. Box 1450 Minneapolis, MN 55485-5989 | Allianz Life Insurance Company of North America P. O. Box 561 Minneapolis, MN 55440-0561 | |
OVERNIGHT, CERTIFIED, OR REGISTERED MAIL | OVERNIGHT, CERTIFIED, OR REGISTERED MAIL | |
Allianz Life Insurance Company of North America NW5989 1801 Parkview Drive Shoreview, MN 55126 | 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 1801 Parkview 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 |
*To be provided upon pre-effective amendment | --------------- |
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)* | Individual Variable Annuity | ||
(b)(i)* | |||
Base Contract Schedule, | |||
(ii) | |||
Index Options | |||
Application for Individual Variable Annuity Contract – | |||
(d)(i)* | Index Performance Strategy | ||
(ii)* | |||
(e)(i)* | |||
(ii)* | |||
(f)* | |||
(g)* | |||
(h)(i)* | |||
(ii)* | |||
(i)* | |||
(j)(i)* | |||
(ii)* | |||
(k)(i)* | |||
(ii)* | |||
(l) | Inherited IRA/Roth IRA Endorsement-S40713 incorporated by reference as | ||
(m) | |||
(n) | |||
(b)** | Consent of Counsel, to be filed by amendment. |
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) |
(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 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 | ||
Jacqueline Hunt(1) | Director and Chairman of the Board | |
Walter R. White(1) | Director, President & Chief Executive Officer | |
Howard E. Woolley(1) | Director | |
Udo Frank(1) | Director | |
William E. Gaumond(1) | Director, Senior Vice President, Chief Financial Officer and Treasurer | |
(principal accounting officer) | ||
Kevin E. Walker(1) | Director | |
Anna Sophie Herken(1) | Director |
(1) | By Power of Attorney, filed as Exhibit 24(c) to this Registration Statement. |
Exhibit | Description of Exhibit | ||
4(b)(ii) | Index Options Schedule, S40877. | ||
4(c) | Application for Individual Variable Annuity Contract – ICC21-IAI-APP-ADV. | ||
4(d)(i) | Index Performance Strategy Rider II,-S40903-IADV. | ||
4(d)(ii) | Index Performance Strategy Rider III,-S40904-IADV. | ||
4(e)(i) | Index Protection Strategy Crediting Rider-S40879-01-IADV. | ||
4(e)(ii) | Index Protection Strategy with Cap Rider-S40899-01-IADV | ||
4(f) | Index Guard Strategy Crediting Rider-S40889-02-IADV. | ||
4(g) | Index Precision Strategy Crediting Rider, S40891-01-IADV. | ||
4(h)(i) | Income Benefit Rider, S40901-02-IADV. | ||
4(h)(ii) | Income Benefit Rider Schedule, S40902-01-IADV. | ||
4(i)(i) | Traditional Death Benefit Rider, S40880-IADV. | ||
4(j)(i) | Maximum Anniversary Death Benefit Rider- S40897-IADV. | ||
4(j)(ii) | Maximum Anniversary Death Benefit Rider Schedule- S40898-IADV | ||
(k)(i) | Income Multiplier Benefit Rider, S40905 | ||
(ii) | Income Multiplier Benefit Rider Schedule, S40906 | ||
24(c) | Powers of Attorney | ||
99(b) | Appendix B Exhibit – Daily Adjustment Calculation - IXA-010b (05/2021) |