Minnesota
(State or other jurisdiction of
incorporation or organization)
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6311
(Primary Standard Industrial
Classification Code Number)
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41-1366075
(I.R.S. Employer
Identification No.)
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5
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10
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1.
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2.
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3.
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4.
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5.
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6.
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7.
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8.
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9.
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10.
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65
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67
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67
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11.
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70
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12.
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13.
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79
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84
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95
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14.
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104
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111
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114
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115
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Back Cover
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Back Cover
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FEES AND
EXPENSES
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Prospectus
Location
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||
Charges
for Early
Withdrawals
|
Your Contract is subject to withdrawal charges that
differ depending on when you
purchased the Contract.
•If you purchase the Contract on or after May 1, 2024, and you withdraw money from
the Contract within six years of your last Purchase Payment, you will
be assessed a
withdrawal charge of up to 8% of the Purchase Payment withdrawn, declining to
0%
over that time period.
•If you purchased the Contract on or before April 30, 2024, and you withdraw money
from the Contract within six years of your last
Purchase Payment, you will be
assessed a withdrawal charge of up to 8.5% of the
Purchase Payment withdrawn,
declining to 0% over that time period.
|
Fee Tables
4. Valuing Your
Contract
6. Expenses
Appendix B –
Daily
Adjustment
|
||
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For example, for Contracts issued on or after May 1,
2024, if you invest $100,000 in the
Contract and make an early withdrawal, you could pay a
withdrawal charge of up to $8,000
(or $8,500 for Contracts issued on or before April 30,
2024).
In addition, if you take a full or partial withdrawal
(including financial adviser fees that you
choose to have us pay from this Contract) from an Index
Option on a date other than the
Term End Date, a Daily Adjustment will apply to the
Index Option Value that is available for
withdrawal. The Daily Adjustment also applies if before
the Term End Date you execute a
Performance Lock, you annuitize the Contract, we pay a
death benefit, or we deduct
Contract fees and expenses. The Daily Adjustment may be
negative depending on the
applicable Crediting Method. You will lose money if the
Daily Adjustment is negative.
•Index Dual Precision Strategy, Index Precision Strategy, Index Guard Strategy,
and Index Performance Strategy. Daily Adjustments under these Crediting Methods
may be positive, negative, or equal to zero. A
negative Daily Adjustment will result in a
loss. In extreme circumstances, a negative Daily
Adjustment could result in a loss
beyond the protection of the 10%, 20%, or 30% Buffer;
or -10% Floor, as applicable.
The maximum potential loss from a negative Daily
Adjustment is: -99% for the Index
Dual Precision Strategy, Index Precision Strategy, and
Index Performance Strategy;
and -35% for the Index Guard Strategy.
•Index Protection Strategy with Trigger. Daily Adjustments under this
Crediting
Method may be positive or equal to zero, but cannot be
negative.
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Transaction
Charges
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Other than withdrawal charges and Daily Adjustments
that may apply to withdrawals and
other transactions under the Contract, there are no
other transaction charges.
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Not Applicable
|
||
Ongoing
Fees and
Expenses
(annual
charges)
|
The table below describes the fees and expenses that
you may pay each year, depending
on the options you choose. Please refer to your
Contract specifications page for information
about the specific fees you will pay each year based on the options
you have elected.
These ongoing fees and expenses do not reflect any
financial adviser fees paid to a
Financial Professional from your Contract Value or
other assets of the Owner. If such
charges were reflected, these ongoing fees and expenses
would be higher.
|
Fee Tables
6. Expenses
Appendix E –
Fund Available
Under the
Contract
|
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Annual Fee
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Minimum
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Maximum
|
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Base Contract(1)
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0.01%
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0.01%
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Investment Options(2)
(Fund fees and expenses)
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0.88%
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0.88%
|
||
Optional Benefits Available for an Additional
Charge(3)
(for a single optional benefit, if elected)
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0.20%
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0.20%
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FEES AND
EXPENSES
|
Prospectus
Location
|
||
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(1)
An amount attributable to the estimated contract
maintenance charge based on expected Contract sales.
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(2)
As a percentage of the AZL Government Money
Market Fund's average daily net assets.
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(3)
As a percentage of the Charge Base. This is the current
charge for the Maximum Anniversary Value Death
Benefit.
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Because your Contract is customizable, the choices you
make affect how much you will
pay. To help you understand the cost of owning your
Contract, the following table shows the
lowest and highest cost you could pay each year, based
on current charges. This estimate
assumes that you do not take withdrawals from the
Contract, which could be subject to a
withdrawal charge, and if taken from
the Index Dual Precision Strategy, Index
Precision Strategy, Index Guard
Strategy, and Index Performance Strategy Index
Options could result in substantial
losses due to the application of negative Daily
Adjustments.
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||
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Lowest Annual Cost:
$853
|
Highest Annual Cost:
$1,036
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Assumes:
•Investment of $100,000 in the Variable
Option (even though you cannot select
the Variable Option for investment)
•5% annual appreciation
•Traditional Death Benefit
•No additional Purchase Payments,
transfers, or withdrawals
•No financial adviser fees
|
Assumes:
•Investment of $100,000 in the Variable
Option (even though you cannot select
the Variable Option for investment)
•5% annual appreciation
•Maximum Anniversary Value Death
Benefit with a 0.20% rider fee
•No additional Purchase Payments,
transfers, or withdrawals
•No financial adviser fees
|
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RISKS
|
|
||
Risk of
Loss
|
You can lose money by investing in the Contract,
including loss of principal and previous
earnings.
|
Risk Factors
|
||
Not a
Short-Term
Investment
|
• This Contract is not a short-term investment and is not appropriate if you need ready
access to cash.
• Considering the benefits of tax deferral and long-term income, the Contract is generally
more beneficial to investors with a long investment
time horizon.
• Withdrawals are subject to income taxes, and may also be subject to a 10% additional
federal tax for amounts withdrawn before age 59 1∕2.
• If, within six years after we receive a Purchase Payment, you take a full or partial
withdrawal (including financial adviser fees that you
choose to have us pay from this
Contract), withdrawal charges will apply. A withdrawal
charge will reduce your Contract
Value or the amount of money that you actually
receive. Withdrawals may reduce or end
Contract guarantees.
• Amounts invested in an Index Option must be held in the Index Option for the full Term
before they can receive a Performance Credit. We apply
a Daily Adjustment if, before the
Term End Date, you take a full or partial withdrawal
(including financial adviser fees that
you choose to have us pay from this Contract), you
execute a Performance Lock, you
annuitize the Contract, we pay a death benefit, or we
deduct Contract fees and expenses.
• The Traditional Death Benefit may not be modified, but it will terminate if you take
withdrawals that reduce both the Contract Value and
Guaranteed Death Benefit Value to
zero. Withdrawals may reduce the Traditional Death
Benefit’s Guaranteed Death Benefit
Value by more than the value withdrawn and could end
the Traditional Death Benefit.
|
Risk Factors
4. Valuing Your
Contract
10. Death Benefit
Appendix B –
Daily Adjustment
|
|
RISKS
|
Prospectus
Location
|
||
Risks
Associated
with
Investment
Options
|
• An investment in the Contract is subject to the risk of poor investment performance and
can vary depending on the performance of the Variable
Option and the Index Options
available under the Contract.
• The Variable Option and each Index Option have their own unique risks.
• You should review the Fund’s prospectus and disclosures, including risk factors, before
making an investment decision.
|
Risk Factors
|
||
Insurance
Company
Risks
|
An investment in the Contract is subject to the risks
related to us. All obligations,
guarantees or benefits of the Contract are the
obligations of Allianz Life and are subject to
our claims-paying ability and financial strength. More
information about Allianz Life,
including our financial strength ratings, is available
upon request by visiting
www.allianzlife.com/about/financial-ratings, or contacting us at (800) 624-0197.
|
Risk Factors
|
||
|
RESTRICTIONS
|
|
||
Investments
|
• Certain Index Options may not be available under your Contract.
• You cannot allocate Purchase Payments to the Variable Option. The sole purpose of the
Variable Option is to hold Purchase Payments until
they are transferred to your selected
Index Options.
• We restrict additional Purchase Payments during the Accumulation Phase. Each Index
Year, you cannot add more than your initial amount
(i.e., the total of all Purchase
Payments received before the first Quarterly Contract
Anniversary of the first Contract
Year) without our prior approval.
• We do not accept additional Purchase Payments during the Annuity Phase.
• We typically only allow assets to move into the Index Options on the Index Effective Date
and on subsequent Index Anniversaries as discussed in
section 3, Purchasing the
Contract – Allocation of Purchase Payments and
Contract Value Transfers. However, if
you execute an Early Reallocation, we will move assets
into an Index Option on the
Business Day we receive your Early Reallocation
request in Good Order.
• You can typically transfer Index Option Value only on Term End Dates. However, you can
transfer assets out of an Index Option before the Term
End Date by executing a
Performance Lock as discussed in section 4, Valuing
Your Contract – Performance Locks.
• We do not allow assets to move into an established Index Option until the Term End Date.
If you request to allocate a Purchase Payment into an
established Index Option on an
Index Anniversary that is not a Term End Date, we will
allocate those assets to the same
Index Option with a new Term Start Date.
• We reserve the right to substitute the Fund in which the Variable Option invests. We also
reserve the right to discontinue accepting new
allocations into specific Index Options and
to substitute Indexes either on a Term Start Date or
during a Term. We also reserve the
right to decline any or all Purchase Payments at any
time on a nondiscriminatory basis.
|
Risk Factors
3. Purchasing the
Contract
4. Valuing Your
Contract
5. Information
Related to the
Variable Option's
Underlying Fund
Appendix A –
Available Indexes
|
||
Optional
Benefits
|
• The optional Maximum Anniversary Value Death Benefit may not be modified.
Withdrawals may reduce the Maximum Anniversary Value
Death Benefit’s Guaranteed
Death Benefit Value by more than the value withdrawn
and will end the Maximum
Anniversary Value Death Benefit if the withdrawals
reduce both the Contract Value and
Guaranteed Death Benefit Value to zero.
|
10. Death Benefit
|
||
|
TAXES
|
|
||
Tax
Implications
|
• Consult with a tax professional to determine the tax implications of an investment in and
withdrawals from or payments received under the
Contract.
• If you purchased the Contract through a tax-qualified plan or individual retirement account
(IRA), you do not get any additional tax benefit under
the Contract.
• Generally, earnings under a Non-Qualified Contract are taxed at ordinary income rates
when withdrawn, and may also be subject to a 10%
additional federal tax for amounts
withdrawn before age 59 1∕2.
• Generally, distributions from Qualified Contracts are taxed at ordinary income tax rates
when withdrawn, and may also be subject to a 10%
additional federal tax for amounts
withdrawn before age 59 1∕2.
|
11. Taxes
|
|
CONFLICTS
OF INTEREST
|
Prospectus
Location
|
||
Investment
Professional
Compensation
|
Your Financial Professional may receive compensation
for selling this Contract to you, in
the form of commissions, additional cash benefits
(e.g., cash bonuses), and non-cash
compensation. We and/or our wholly owned subsidiary
distributor may also make marketing
support payments to certain selling firms for marketing
services and costs associated with
Contract sales. This conflict of interest may influence
your Financial Professional to
recommend this Contract over another investment for
which the Financial Professional is
not compensated or compensated less.
|
12. Other
Information –
Distribution
|
||
Exchanges
|
Some Financial Professionals may have a financial
incentive to offer you a new contract in
place of one you already own. You should only exchange
your contract if you determine,
after comparing the features, fees, and risks of both
contracts, that it is better for you to
purchase the new contract rather than continue to own
your existing contract.
|
12. Other
Information –
Distribution
|
Currently Available
Crediting Methods, Term
Lengths, and
Negative Index Performance
Protection
|
Currently
Available Indexes
|
Positive Index Performance
Participation Limit
|
Index Protection Strategy
with Trigger 1-year Term with
100% downside protection
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 0.10% minimum Trigger Rate
|
Index Dual Precision Strategy
1-year Term with 10%, 20%, or
30% Buffer
• For Contracts issued from May 1, 2023,
to November 13, 2023, the Index Dual
Precision Strategy is not available.
• For Contracts issued from November
14, 2023, to April 30, 2024, only the 10%
Buffer is available.
• For Contracts issued since May 1, 2024,
the 10%, 20%, and 30% Buffers are
available.
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 0.10% minimum Trigger Rate
|
Index Precision Strategy
1-year Term with 10% Buffer
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 0.10% minimum Trigger Rate
|
Index Guard Strategy
1-year Term with -10% Floor
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 0.10% minimum Cap
|
Currently Available
Crediting Methods, Term
Lengths, and
Negative Index Performance
Protection
|
Currently
Available Indexes
|
Positive Index Performance
Participation Limit
|
Index Performance Strategy
1-year Term with 10%, 20%, or
30% Buffer
• For Contracts issued from May 1, 2023,
to November 13, 2023, only the 10%
Buffer is available.
• For Contracts issued since November
14, 2023, the 10%, 20%, and 30% Buffers
are available.
|
• S&P 500® Index
• Russell 2000® Index
• Nasdaq-100® Index
• EURO STOXX 50®
• iShares® MSCI Emerging Markets ETF
|
• 0.10% minimum Cap
• Can be “uncapped” (i.e., we do not declare a
Cap for that Term)
|
Index Performance Strategy
3-year Term with 10% or 20%
Buffer
|
• S&P 500® Index
• Russell 2000® Index
|
• 2% minimum Cap
• Can be uncapped
• 100% minimum Participation Rate
|
Index Performance Strategy
6-year Term with 10% or 20%
Buffer
• For Contracts issued from May 1, 2023,
to November 13, 2023, only the 10%
Buffer is available.
• For Contracts issued since November
14, 2023, the 10% and 20% Buffers are
available.
|
• S&P 500® Index
• Russell 2000® Index
|
• 5% minimum Cap
• Can be uncapped
• 100% minimum Participation Rate
|
Number of Complete
Years Since
Purchase Payment
|
Withdrawal Charge Amount
|
|
Contracts issued
on or before
April 30, 2024
|
Contracts issued
on or after
May 1, 2024
|
|
0
|
8.5%
|
8%
|
1
|
8%
|
8%
|
2
|
7%
|
7%
|
3
|
6%
|
6%
|
4
|
5%
|
5%
|
5
|
4%
|
4%
|
6 years or more
|
0%
|
0%
|
|
Index Protection Strategy
with Trigger
|
Index Dual Precision Strategy,
Index Precision Strategy,
and
Index Performance Strategy
|
Index
Guard
Strategy
|
Daily Adjustment Maximum Potential Loss
|
0%
|
99%
|
35%
|
(as a percentage of Index Option Value, applies for
distributions from an Index Option before any Term
End Date)(3)
|
|
|
|
Administrative Expenses (or contract
maintenance charge)(1)
(per year)
|
$50
|
Optional Benefit Expenses – Maximum
Anniversary Value Death Benefit
(as a percentage of the Charge Base)
|
0.20%
|
(expenses that are deducted from Fund assets, including management fees,
distribution and/or service (12b-1) fees, and other expenses)
|
0.88%
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Contracts issued on or before April 30, 2024
|
$9,597
|
$10,422
|
$10,933
|
$13,122
|
Contracts issued on or after May 1, 2024
|
$9,097
|
$10,422
|
$10,933
|
$13,122
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Contracts issued on or before April 30, 2024
|
N/A*
|
$3,422
|
$5,933
|
$13,122
|
Contracts issued on or after May 1, 2024
|
N/A*
|
$3,422
|
$5,933
|
$13,122
|
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Contracts issued on or before April 30, 2024
|
$1,097
|
$3,422
|
$5,933
|
$13,122
|
Contracts issued on or after May 1, 2024
|
$1,097
|
$3,422
|
$5,933
|
$13,122
|
|
January 1, 2014 through December 31, 2023
|
||||
|
S&P 500®
Index
|
Nasdaq-100®
Index
|
Russell 2000®
Index
|
EURO
STOXX 50®
|
iShares® MSCI
Emerging Markets ETF
|
Returns without dividends
|
11.02
%
|
19.57
%
|
6.76
%
|
4.60
%
|
1.04
%
|
Returns with dividends
|
13.09
%
|
20.79
%
|
8.19
%
|
8.10
%
|
3.22
%
|
We will not provide
advice or notify you regarding whether you should execute a Performance Lock or Early
Reallocation or the
optimal time for doing so. We will not warn you if you execute a Performance Lock or Early
Reallocation at a
sub-optimal time. We are not responsible for any losses related to your decision whether or not to
execute a Performance
Lock or Early Reallocation.
|
Financial Adviser Fee
Withdrawal
|
Contract
Value
|
Guaranteed Death Benefit
Value for a Contract with the
Traditional Death Benefit
|
Guaranteed Death Benefit Value
for a Contract with the
Maximum Anniversary Value
Death Benefit
|
Prior to 1st years withdrawal
|
$ 100,000
|
$ 90,000
|
$ 105,000
|
$5,000 withdrawal (subject to an
|
|
|
|
8% withdrawal charge)
|
– [($5,000 ÷ (1 – 8%)]
|
|
|
Amount withdrawn
|
– $5,435
|
– [($5,435 ÷ 100,000) x 90,000]
|
– [($5,435 ÷ 100,000) x 105,000]
|
|
|
= - $4,892
|
= - $5,707
|
After 1st years withdrawal
|
$ 94,565
|
$ 85,108
|
$ 99,293
|
|
|
|
|
Prior to 2nd years withdrawal
|
$ 97,000
|
$ 85,108
|
$ 99,293
|
$5,000 withdrawal (not subject to a
|
|
|
|
withdrawal charge)
|
– $5,000
|
– [($5,000 ÷ 97,000) x 85,108]
|
– [($5,000 ÷ 97,000) x 99,293]
|
|
|
= - $4,388
|
= - $5,119
|
After 2nd years withdrawal
|
$ 92,000
|
$ 80,720
|
$ 94,174
|
|
|
|
|
Prior to 3rd years withdrawal
|
$ 80,000
|
$ 80,720
|
$ 94,174
|
$5,000 withdrawal (not subject to a
|
– $5,000
|
– [($5,000 ÷ 80,000) x 80,720]
|
– [($5,000 ÷ 80,000) x 94,174]
|
withdrawal charge)
|
|
= - $5,045
|
= - $5,886
|
After 3rd years withdrawal
|
$ 75,000
|
$ 75,675
|
$ 88,288
|
UPON THE DEATH OF A SOLE OWNER
|
|
Action if the Contract is in the Accumulation Phase
|
Action if the Contract is in the Annuity Phase
|
• If this is an Inherited IRA Contract, the Beneficiary can either:
– continue to receive RMD payments based on the
remaining life expectancy of the deceased Inherited IRA
Owner and the Contract Value as of the Business Day we
receive a Valid Claim, until ten years after the Inherited
IRA Owner’s death at which time we make a lump sum
payment, or
– receive a lump sum payment of the Contract Value as of
the Business Day we receive a Valid Claim.
• For all other Contracts, we pay a death benefit to the
Beneficiary unless the Beneficiary is the surviving spouse and
continues the Contract.
• If the deceased Owner was a Determining Life and the
surviving spouse Beneficiary continues the Contract:
– we increase the Contract Value to equal the Guaranteed
Death Benefit Value if greater and available, and the
death benefit ends,
– the surviving spouse becomes the new Owner,
– the Accumulation Phase continues, and
– upon the surviving spouse’s death, his or her
Beneficiary(ies) receives the Contract Value.
• If the deceased Owner was not a Determining Life, the
Traditional Death Benefit or Maximum Anniversary Value Death
Benefit are not available and the Beneficiary(ies) receives the
Contract Value.
|
• The Beneficiary becomes the Payee. If we are still required to
make Annuity Payments under the selected Annuity Option, the
Beneficiary also becomes the new Owner.
• If the deceased was not an Annuitant, Annuity Payments to the
Payee continue. No death benefit is payable.
• If the deceased was the only surviving Annuitant, Annuity
Payments end or continue as follows.
– Annuity Option A or C, payments end when the
guaranteed period ends.
– Annuity Option B, F, or G, payments end.
– For more information on the Annuity Options, please see
section 8.
• If the deceased was an Annuitant and there is a surviving joint
Annuitant, Annuity Payments to the Payee continue during the
lifetime of the surviving joint Annuitant. No death benefit is
payable.
• For a Qualified Contract, the Annuity Payments must end ten
years after the Owner’s death.
|
• FOR JOINTLY OWNED CONTRACTS: The sole primary
Beneficiary is the surviving Joint Owner regardless of
any other named primary Beneficiaries. If both Joint Owners
die within 120 hours of each other, we pay the death
benefit to the named surviving primary Beneficiaries. If
there are no named surviving primary Beneficiaries, we pay
the death benefit to the named surviving contingent
Beneficiaries, or equally to the estate of the Joint Owners if there
are no named surviving contingent Beneficiaries.
|
• NAMING AN ESTATE AS A BENEFICIARY: If an estate is
the Beneficiary, the estate must be the sole primary
Beneficiary, unless the Spouse is the sole primary
Beneficiary. If the Spouse is the sole primary Beneficiary, then an
estate can be a contingent beneficiary.
|
• An assignment may be a taxable event. In addition, there are other
restrictions on changing the ownership of a
Qualified Contract and Qualified Contracts generally cannot
be assigned absolutely or on a limited basis. You should
consult with your tax
adviser before assigning this Contract.
|
• An assignment will only change the Determining Life (Lives) if it involves removing a Joint Owner due to
divorce, replacing Joint Owners with a
Trust, or adding a Joint Owner if that person is a spouse within the
meaning of federal tax law of the existing
Owner.
|
We do not accept additional Purchase
Payments if you have an Inherited IRA, or Inherited Roth IRA Contract.
|
On your application if you select…
|
Your Index Effective Date will be either…
|
the earliest Index Effective Date
|
• your Issue Date, or
• the first Business Day of the next month if the Issue Date is the 29th, 30th, or 31st of a
month
|
the deferred Index Effective Date
|
• your first Quarterly Contract Anniversary, or
• the next Business Day if the first Quarterly Contract Anniversary occurs on a non-Business
Day, or the first Business Day of the next month if the
first Quarterly Contract Anniversary
is the 29th, 30th, or 31st of a month
|
• In order to apply Purchase Payments we receive after the Index Effective Date to your selected Index Option(s) on
the next Index Anniversary, we must receive them before the end of the Business Day on the Index Anniversary (or
before the end of the prior Business Day if the anniversary is a non-Business Day).
|
• Purchase Payments we hold in the Variable Option before transferring them to your selected Index Options are
subject to Contract fees
and expenses (e.g. contract maintenance charge), and market risk and may lose value.
|
Variable Account Value increases when….
|
Variable Account Value decreases when….
|
• we hold assets in the Variable Option on an interim basis
before transferring them to your selected Index
Option(s), or
due to a Contract Value increase associated with the
death of
a Determining Life, or
• there is positive Fund performance
|
• you take assets out of the Variable Option by withdrawal
(including financial adviser fees that you choose to have
us
pay from this Contract),
• we transfer assets held in the Variable Option on an interim
basis to your selected Index Option(s) according to
allocation
instructions,
• there is negative Fund performance, or
• we deduct Contract fees and expenses
|
Contract fees and
expenses we deduct from the Variable Option include the rider fee, contract maintenance charge, and
withdrawal charge as described in section
6, Expenses. Financial
adviser fees that you choose to have us pay from this
Contract are described in section 1, The
Contract.
|
Index Option Values increase when….
|
Index Option Values decrease when….
|
• you add assets to an Index Option by Purchase Payment,
make allocation instruction changes that transfer
Contract
Value, or request an Early Reallocation into the Index
Option,
• we transfer assets held in the Variable Option on an interim
basis to your selected Index Option according to
allocation
instructions, or
• you receive a positive Performance Credit or Daily Adjustment
|
• you take assets out of an Index Option by
withdrawal (including any financial adviser fees that you
choose to have us pay from this Contract), make
allocation
instruction changes that transfer Contract Value, or
request an
Early Reallocation out of the Index Option,
• you receive a negative Performance Credit or Daily
Adjustment, or
• we deduct Contract fees and expenses
|
Contract fees and
expenses we deduct from the Index Options include the rider fee, contract maintenance charge, and
withdrawal charge as described in section
6, Expenses. Financial adviser fees that you choose to have us pay from this
Contract are described in section 1, The
Contract.
|
• The Index Dual Precision Strategy, Index Precision Strategy, Index Guard Strategy, and Index Performance
Strategy allow negative Performance
Credits. A negative Performance Credit means you can lose principal and
previous earnings. The
maximum potential negative Performance Credit is: -90% with a 10% Buffer; -80% with a
20% Buffer; -70% with a
30% Buffer; and -10% with the Floor.
|
• Because we calculate Index Returns only on a single date in time, you may experience negative or flat
performance even though the Index you
selected for a given Crediting Method experienced gains through
some, or most, of the Term.
|
• If an Index Performance Strategy Index Option is “uncapped” for one Term (i.e., we do not declare a Cap for
that Term) it does not mean that we will
not declare a Cap for it on future Term Start Dates. On the next Term
Start Date we can declare a Cap for the next Term, or
declare it to be uncapped.
|
What is the asset protection?
|
|
Index Protection
Strategy with Trigger
|
• Most protection.
• If the Index loses value, the Performance Credit is zero. You do not receive a negative Performance
Credit.
|
What is the asset protection?
|
|
Index Dual Precision
Strategy
|
• Less protection than the Index Protection Strategy with Trigger and Index Guard Strategy. Protection
is equal to or greater than what is available with the
Index Precision Strategy depending on the Index
Option. Offers the same protection levels as the Index
Performance Strategy.
• Buffer absorbs 10%, 20%, or 30% of loss, but you receive a negative Performance Credit for losses
greater than the Buffer.
• Potential for large losses in any Term.
• More sensitive to large negative market movements because small or moderate negative market
movements within the applicable 10%, 20%, or 30% Buffer
result in a positive Performance Credit. In
a period of extreme negative market performance, the risk
of loss is greater with the Index Dual
Precision Strategy than with the Index Guard Strategy.
|
Index Precision Strategy
|
• Less protection than the Index Protection Strategy with Trigger and Index Guard Strategy. Protection
may be equal to or less than what is available with the
Index Dual Precision Strategy and Index
Performance Strategy depending on the Index Option.
• Buffer absorbs 10% of loss, but you receive a negative Performance Credit for losses greater than
10%.
• Potential for large losses in any Term.
• More sensitive to large negative market movements because small negative market movements are
absorbed by the 10% Buffer. In a period of extreme
negative market performance, the risk of loss is
greater with the Index Precision Strategy than with the
Index Guard Strategy.
|
Index Guard Strategy
|
• Less protection than the Index Protection Strategy with Trigger, but more than Index Dual Precision
Strategy, Index Precision Strategy, and Index Performance
Strategy.
• Permits a negative Performance Credit down to the -10% Floor.
• Protection from significant losses.
• More sensitive to smaller negative market movements that persist over time because the -10% Floor
reduces the impact of large negative market movements.
• In an extended period of smaller negative market returns, the risk of loss is greater with the Index
Guard Strategy than with the Index Dual Precision
Strategy, Index Precision Strategy, and Index
Performance Strategy.
• Provides certainty regarding the maximum loss in any Term.
|
Index Performance
Strategy
|
• Less protection than the Index Protection Strategy with Trigger and Index Guard Strategy. Index
Options with a 10% Buffer provide the same protection as
the Index Precision Strategy. The 20% and
30% Buffers provide more protection than what is
available with the Index Precision Strategy. Offers
the same protection levels as the Index Dual Precision
Strategy.
• Buffer absorbs 10%, 20%, or 30% of loss depending on the Index Option you select, but you receive
a negative Performance Credit for losses greater than the
Buffer.
• Potential for large losses in any Term.
• More sensitive to large negative market movements because small or moderate negative market
movements are absorbed by the Buffer. In a period of
extreme negative market performance, the risk
of loss is greater with the Index Performance Strategy
than with the Index Guard Strategy.
• In extended periods of moderate to large negative market performance, 3-year and 6-year Terms may
provide less protection than the 1-year Terms because, in
part, the Buffer is applied over a longer
period of time.
|
What is the growth opportunity?
|
|
Index Protection
Strategy with Trigger
|
• Growth opportunity limited by the Trigger Rates.
• May perform best in periods of small positive market movements relative to the other Crediting
Methods, because such small positive market movements may
result in positive Performance Credits
that are greater than the Index Return while also
providing complete protection from any Index losses.
• These Trigger Rates will generally be less than Caps, and Index Precision Strategy's Trigger Rates.
Growth opportunity may be more or less than the Index
Dual Precision Strategy depending on Trigger
Rates.
|
What is the growth opportunity?
|
|
Index Dual Precision
Strategy
|
• Growth opportunity limited by the Trigger Rates.
• May perform best in periods of small or moderate negative market movements as it provides a
positive Performance Credit in these environments while
other Crediting Methods do not.
• Generally less growth opportunity than the Index Precision Strategy and Index Performance Strategy.
• Growth opportunity may be more or less than the Index Protection Strategy with Trigger and Index
Guard Strategy depending on Trigger Rates and Caps.
|
Index Precision Strategy
|
• Growth opportunity limited by the Trigger Rates.
• May perform best in periods of small positive market movements.
• Generally more growth opportunity than the Index Protection Strategy with Trigger and Index Dual
Precision Strategy. However, less growth opportunity than
the Index Dual Precision Strategy during
periods of small or moderate negative market movements.
• Growth opportunity may be more or less than the Index Guard Strategy or Index Performance
Strategy depending on Trigger Rates and Caps.
|
Index Guard Strategy
|
• Growth opportunity limited by the Caps.
• May perform best in a strong market.
• Growth opportunity that generally may be matched or exceeded only by the Index Performance
Strategy. However, growth opportunity may be more or less
than the Index Dual Precision Strategy,
Index Precision Strategy, or Index Performance Strategy
depending on Trigger Rates and Caps.
|
Index Performance
Strategy
|
• Growth opportunity limited by the Caps and/or Participation Rates. If we do not declare a Cap for an
Index Option, there is
no maximum limit on the positive Index Return for that Index Option. In
addition, you can
receive more than the positive Index Return if the Participation Rate applies
and is greater than
its 100% minimum. However, the Participation Rate cannot boost Index
Returns beyond a
declared Cap.
• May perform best in a strong market.
• 1-year Term with 10% Buffer Index Options, 3-year Term with 10% or 20% Buffer Index Options, and
6-year Term with 10% or 20% Buffer Index Options have the
most growth opportunity.
• Growth opportunity for the 1-year Term with 20% or 30% Buffer may be less than the Index Dual
Precision Strategy, Index Precision Strategy, and Index
Guard Strategy depending on Trigger Rates
and Caps.
|
What can change within a Crediting
Method?
|
|
Index Protection
Strategy with Trigger
|
• Renewal and Early Reallocation Trigger Rates for existing Contracts can change on each Term Start
Date.
– 1-year Term has a 0.10% minimum Trigger Rate.
|
Index Dual Precision
Strategy
|
• Renewal and Early Reallocation Trigger Rates for existing Contracts can change on each Term Start
Date.
– 1-year Term with a 10%, 20%, or 30% Buffer has a 0.10% minimum Trigger Rate.
• The 10%, 20%, or 30% Buffers for the currently available Index Options cannot change. However, if
we add a new Index Option to your Contract after the
Issue Date, we establish the Buffer for it on the
date we add the Index Option to your Contract. The
minimum Buffer is 5% for a new Index Option.
|
Index Precision Strategy
|
• Renewal and Early Reallocation Trigger Rates for existing Contracts can change on each Term Start
Date.
– 1-year Term has a 0.10% minimum Trigger Rate.
• The 10% Buffers for the currently available Index Options cannot change. However, if we add a new
Index Option to your Contract after the Issue Date, we
establish the Buffer for it on the date we add
the Index Option to your Contract. The minimum Buffer is
5% for a new Index Option.
|
Index Guard Strategy
|
• Renewal and Early Reallocation Caps for existing Contracts can change on each Term Start Date.
– 1-year Term has a 0.10% minimum Cap.
• The -10% Floors for the currently available Index Options cannot change. However, if we add a new
Index Option to your Contract after the Issue Date, we
establish the Floor for it on the date we add the
Index Option to your Contract. The minimum Floor is -25%
for a new Index Option.
|
What can change within a Crediting
Method?
|
|
Index Performance
Strategy
|
• Renewal and Early Reallocation Caps and/or Participation Rates for existing Contracts can change on
each Term Start Date.
– 1-year Term with 10%, 20%, or 30% Buffer has a 0.10% minimum Cap.
– 3-year Term with 10% or 20% Buffer has a 2% minimum Cap, and 100% minimum Participation Rate.
– 6-year Term with 10% or 20% Buffer has a 5% minimum Cap, and 100% minimum Participation Rate.
• The 10%, 20%, and 30% Buffers for the currently available Index Options cannot change. However, if
we add a new Index Option to your Contract after the
Issue Date, we establish the Buffer for it on the
date we add the Index Option to your Contract. The
minimum Buffer is 5% for a new Index Option.
|
• For any Index Option with the Index Dual Precision Strategy, Index Precision Strategy, or Index Performance
Strategy, you participate in any negative Index Return in excess of the Buffer, which reduces your Contract Value.
For example, for a 10% Buffer we absorb the first -10% of
Index Return and you could lose up to 90% of the Index
Option Value. However, for any Index Option with the Index Guard Strategy, we absorb any negative Index Return
in excess of the -10%
Floor, so your maximum loss is limited to -10% of the Index Option Value due to negative
Index Returns.
|
• Trigger Rates, Caps, and Participation Rates as set by us from time-to-time may vary substantially based on market
conditions. However, in extreme market environments, it is possible that all Trigger Rates, Caps, and Participation
Rates will be reduced
to their respective minimums of 0.10%, 2%, 5%, or 100% as stated in the table above.
|
• If your Contract is within its free look period you may be able to take advantage of any increase in initial Trigger
Rates, Caps, and/or Participation Rates by cancelling
your Contract and purchasing a new Contract.
|
• If the initial Trigger Rates, Caps, and/or Participation Rates available on the Index Effective Date are not acceptable
you have the following options.
|
– Cancel your Contract if you are still within the free look period. If you took a withdrawal that was subject to a
withdrawal charge (including financial adviser fees that
you choose to have us pay from this Contract) we will refund
any previously deducted withdrawal charge upon a free look
cancellation.
|
– Request to extend your Index Effective Date if you have not reached your first Quarterly Contract Anniversary.
|
– If the free look period has expired, request a full withdrawal and receive the Cash
Value. This withdrawal is subject to
withdrawal charges, income taxes, and may also be subject
to a 10% additional federal tax for amounts withdrawn
before age 59 1∕2. If this occurs on or before the Index
Effective Date, the Daily Adjustment does not apply. If this
occurs after the Index Effective Date, you are
subject to the Daily Adjustment.
|
• Trigger Rates, Caps, and Participation Rates can be different from Index Option to Index Option. For example,
Caps for the Index Performance Strategy 1-year Terms can
be different between the S&P 500® Index and the
Nasdaq-100® Index; and
Caps for the S&P 500® Index can be different between 1-year, 3-year, and 6-year Terms on
the Index Performance Strategy, and between the 1-year
Terms for the Index Guard Strategy and Index Performance
Strategy. Initial, renewal, and Early Reallocation rates may also be different from Contract-to-Contract. For
example, assume that on August 3, 2023 we set Caps for
the Index Performance Strategy 1-year Term with 10% Buffer
using the S&P 500® Index as
follows:
|
– 13% initial rate and 12% Early Reallocation rate for new Contracts issued in 2023,
|
– 14% renewal rate and 14% Early Reallocation rate for existing Contracts issued in 2022, and
|
– 12% renewal rate and 13% Early Reallocation rate for existing Contracts issued in 2021.
|
|
First Index Option
|
Second Index Option
|
||
|
Index Option Value
|
Index Option Base
|
Index Option Value
|
Index Option Base
|
Prior to partial withdrawal
|
$ 75,000
|
$ 72,000
|
$ 25,000
|
$ 22,000
|
$10,000 partial withdrawal
|
– $7,500
|
– $7,200
|
– $2,500
|
– $2,200
|
|
|
|
|
|
After partial withdrawal
|
$ 67,500
|
$ 64,800
|
$ 22,500
|
$ 19,800
|
• Amounts removed from the Index Options during the Term for partial withdrawals you take (including any
financial adviser fees that you choose to
have us pay from this Contract) and deductions we make for Contract
fees and expenses do not receive a
Performance Credit on the Term End Date. However, the remaining amount
in the Index Options is eligible for a Performance Credit
on the Term End Date.
|
• You cannot specify from which Index Option or the Variable Option we deduct Contract fees and expenses; we
deduct Contract fees and expenses from each Index Option
and the Variable Option proportionately based on its
percentage of Contract Value.
|
Crediting Method
and Term Length
|
If Index Value is less than it was
on the
Term Start Date
(i.e., Index Return is negative):
|
If Index Value is equal to or greater
than it was
on the Term Start Date
(i.e., Index Return is zero or positive):
|
Index Protection
Strategy with Trigger
1-year Term
|
Performance Credit is zero.
|
Performance Credit is equal to the Trigger Rate set
on the Term Start Date.
|
Index Dual Precision
Strategy 1-year Term
• For Contracts issued
from May 1, 2023, to
November 13, 2023, the
Index Dual Precision
Strategy is not available.
• For Contracts issued
from November 14, 2023,
to April 30, 2024, only
the 10% Buffer is
available.
• For Contracts issued
since May 1, 2024, the
10%, 20%, and 30%
Buffers are available.
|
Performance Credit is equal to the Trigger Rate if the
negative Index Return is less than or equal to the
10%, 20%, or 30% Buffer. However, if the negative
Index Return is greater than the 10%, 20%, or 30%
Buffer you receive a Performance Credit equal to the
negative Index Return in excess of the applicable
Buffer.
Assume you select a 1-year Term Index Option with
10% Buffer. If the Index Return for the year is…
• -8%, the Performance Credit is equal to the Trigger
Rate set on the Term Start Date.
• -12%, the Performance Credit is -2%.
Instead assume you
select a 1-year Term Index
Option with 20%
Buffer, and the Index Return for
the Term is…
• -19%, the Performance Credit is equal to the
Trigger Rate set on the Term Start Date.
• -24%, the Performance Credit is -4%.
Instead assume you
select a 1-year Term Index
Option with 30%
Buffer, and the Index Return for
the Term is…
• -29%, the Performance Credit is equal to the
Trigger Rate set on the Term Start Date.
• -36%, the Performance Credit is -6%.
|
Performance Credit is equal to the Trigger Rate set
on the Term Start Date.
|
Index Precision
Strategy 1-year Term
|
Performance Credit is equal to the negative Index
Return in excess of the 10% Buffer.
If the Index Return is…
• -8%, the Performance Credit is zero.
• -12%, the Performance Credit is -2%.
|
Performance Credit is equal to the Trigger Rate set
on the Term Start Date.
|
Index Guard Strategy
1-year Term
|
Performance Credit is equal to the negative Index
Return subject to the -10% Floor.
If the Index Return is…
• -8%, the Performance Credit is -8%.
• -12%, the Performance Credit is -10%.
|
Performance Credit is equal to the Index Return up
to the Cap set on the Term Start Date.
Assume the Cap is 8%. If the Index Return is…
• 0%, the Performance Credit is zero.
• 6%, the Performance Credit is 6%.
• 12%, the Performance Credit is 8%.
|
Crediting Method
and Term Length
|
If Index Value is less than it was
on the
Term Start Date
(i.e., Index Return is negative):
|
If Index Value is equal to or greater
than it was
on the Term Start Date
(i.e., Index Return is zero or positive):
|
Index Performance
Strategy 1-year Term
• For Contracts issued
from May 1, 2023, to
November 13, 2023, only
the 10% Buffer is
available.
• For Contracts issued
since November 14,
2023, the 10%, 20%, and
30% Buffers are
available.
|
Performance Credit is equal to the negative Index
Return in excess of the 10%, 20%, or 30% Buffer.
Assume you select a 1-year Term Index Option with
10% Buffer. If the Index Return for the year is…
• -8%, the Performance Credit is zero.
• -12%, the Performance Credit is -2%.
Instead assume you
select a 1-year Term Index
Option with 20%
Buffer, and the Index Return for
the Term is…
• -19%, the Performance Credit is 0%.
• -24%, the Performance Credit is -4%.
Instead assume you
select a 1-year Term Index
Option with 30%
Buffer, and the Index Return for
the Term is…
• -29%, the Performance Credit is 0%.
• -36%, the Performance Credit is -6%.
|
Performance Credit is equal to the Index Return up
to any Cap set on the Term Start Date.
Assume the Cap for the 1-year Term is 8%. If the
Index Return for the year is…
• 0%, the Performance Credit is zero.
• 6%, the Performance Credit is 6%.
• 12%, the Performance Credit is 8%. If instead the
1-year Term is
uncapped, the Performance
Credit is 12%.
|
Index Performance
Strategy 3-year Term
|
Performance Credit is equal to the negative Index
Return in excess of the 10% or 20% Buffer.
Assume you select a 3-year Term Index Option with
10% Buffer. If the Index Return for the Term is…
• -19%, the Performance Credit is -9%.
• -24%, the Performance Credit is -14%.
Instead assume you
select a 3-year Term Index
Option with 20%
Buffer, and the Index Return for
the Term is…
• -19%, the Performance Credit is 0%.
• -24%, the Performance Credit is -4%.
|
Performance Credit is equal to the Index Return
multiplied by the Participation Rate, up to any Cap
set on the Term Start Date.
Assume the Participation Rate is 100% and the Cap
is 80%. If the Index Return for the Term is…
• 0%, the Performance Credit is zero.
• 65%, the Performance Credit is 65%.
• 90%, the Performance Credit is 80%.
If instead the
Participation Rate is 110% and the
3-year Term is uncapped, and the Index Return for
the Term is…
• 0%, the Performance Credit is zero.
• 65%, the Performance Credit is 71.5%.
• 90%, the Performance Credit is 99%.
|
Index Performance
Strategy 6-year Term
• For Contracts issued
from May 1, 2023, to
November 13, 2023, only
the 10% Buffer is
available.
• For Contracts issued
since November 14,
2023, the 10% and 20%
Buffers are available.
|
Performance Credit is equal to the negative Index
Return in excess of the 10% or 20% Buffer.
If the Index Return for the Term is…
• -19%, the Performance Credit is -9%.
• -24%, the Performance Credit is -14%.
Instead assume you
select a 6-year Term Index
Option with 20%
Buffer, and the Index Return for
the Term is…
• -19%, the Performance Credit is 0%.
• -24%, the Performance Credit is -4%.
|
Performance Credit is equal to the Index Return
multiplied by the Participation Rate, up to any Cap
set on the Term Start Date.
Assume the Participation Rate is 100% and the Cap
is 85%. If the Index Return for the Term is…
• 0%, the Performance Credit is zero.
• 65%, the Performance Credit is 65%.
• 90%, the Performance Credit is 85%.
If instead the
Participation Rate is 110% and the
6-year Term is uncapped, and the Index Return for
the Term is…
• 0%, the Performance Credit is zero.
• 65%, the Performance Credit is 71.5%.
• 90%, the Performance Credit is 99%.
|
We will not provide
advice or notify you regarding whether you should execute a Performance Lock or Early
Reallocation or the
optimal time for doing so. We will not warn you if you execute a Performance Lock or Early
Reallocation at a
sub-optimal time. We are not responsible for any losses related to your decision whether or not to
execute a Performance
Lock or Early Reallocation.
|
Currently the Contract does not offer any variable
investment options to which you can allocate money. As such, and
given the design of the Contract, we do not believe there
to be a risk of excessive trading and market timing. However, if
we were to offer multiple variable investment options in
the future, they would be subject to the following provisions.
|
This Contract is not designed for professional market
timing organizations, or other persons using programmed, large, or
frequent transfers, and we may restrict excessive or
inappropriate transfer activity.
|
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 rider fee, on
the day after the
Issue Date.
|
• First we calculate and accrue the daily rider fee,
using the Charge Base. If this is a non-Business
Day we use the Charge Base from the end of the
prior Business Day.
• Then if this is a Business Day we
increase/decrease the Charge Base as follows.
– If we receive an additional Purchase
Payment, we increase the Charge Base by
the dollar amount we receive.
– If you take a partial withdrawal (including any
financial adviser fees that you choose to have
us pay from this Contract), or we deduct
Contract fees and expenses other than the
withdrawal charge, we decrease the Charge
Base by the percentage of Contract Value
withdrawn (including any withdrawal charge).
All withdrawals you take reduce the Charge
Base, even Penalty-Free Withdrawals.
|
• First we process all daily transactions and
determine your Contract Value. Daily
transactions include any gains/losses due to AZL
Government Money Market Fund performance or
application of any Daily Adjustment (or
Performance Credit if this is also the Term End
Date), any additional Purchase Payment, any
partial withdrawals you take (including financial
adviser fees that you choose to have us pay from
this Contract and any withdrawal charge), and
deductions we make for other Contract fees and
expenses (including deduction of the accrued
daily rider fee for
the prior quarter). All partial
withdrawals you take reduce the Charge Base,
even Penalty-Free Withdrawals.
– We deduct the accrued rider fee for the prior
quarter on a dollar for dollar basis from the
Contract Value, and proportionately from each
Index Option and the Variable Option.
• Then we set the Charge Base equal to this
Contract Value and we calculate and accrue the
next quarter’s daily rider fee using the newly set
Charge Base.
* Or the next Business Day if the Quarterly Contract
Anniversary is a non-Business Day.
|
Example: Contract Value is $125,000; Charge
Base is $127,000; a $10,000 partial
withdrawal (including any withdrawal charge)
would decrease the Charge Base by $10,160.
[($10,000 ÷ $125,000) x $127,000]
Any increase/decrease to the Charge Base
will increase/decrease the daily rider fee we
calculate and accrue on the next day.
|
||
Examples of how we
calculate the rider fee are included in Appendix C.
|
• When calculating the Maximum Anniversary Value, we deduct all Contract fees and expenses on the Index
Anniversary (including the accrued rider fee if this is
also a Quarterly Contract Anniversary) before we capture any
annual investment gains. However, we do not treat the
deduction of the accrued rider fee as a withdrawal when
calculating the Maximum Anniversary Value (see section 10).
|
• 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 rider fee, we deduct your total remaining Contract
Value to cover the accrued rider fee and reduce your
Contract Value to zero.
|
Calculating a Withdrawal Charge
|
Example
|
|||
For purposes of calculating any withdrawal charge, we
withdraw
Purchase Payments on a “first-in-first-out” (FIFO) basis
and we
process withdrawal requests as follows.
|
You make an initial Purchase Payment of $55,000 and make
another Purchase Payment in the first month of the second
Contract Year of $45,000. In the third month of the third
Contract Year, your Contract Value is $110,000 and you
request a $70,000 withdrawal. We withdraw money and
compute the withdrawal charge as follows.
|
|||
1. First, we withdraw from Purchase Payments that we have had
for six or more complete years, which is your Contract’s
withdrawal charge period. This withdrawal is not subject
to a
withdrawal charge and it reduces the Withdrawal Charge
Basis
dollar for dollar.
|
1. Purchase Payments beyond the withdrawal charge
period. All payments are still within the withdrawal charge
period, so this does not apply.
|
Calculating a Withdrawal Charge
|
Example
|
|||
2. Amounts available as a Penalty-Free Withdrawal. This includes
partial withdrawals you take during the Accumulation Phase
under the free withdrawal privilege or waiver of
withdrawal
charge benefit, and RMD payments you take under our
minimum distribution program. Penalty-Free Withdrawals are
not subject to a withdrawal charge, and they do not reduce
the
Withdrawal Charge Basis.
|
2. Amounts available as a Penalty-Free Withdrawal. You did
not take any other withdrawals this year, so the entire
free
withdrawal privilege (10% of your total Purchase Payments,
or $10,000) is available to you without incurring a
withdrawal
charge.
|
|||
3. Next, on a FIFO basis, we withdraw from Purchase Payments
within your Contract’s withdrawal charge period and assess
a
withdrawal charge. Withdrawing payments on a FIFO basis
may help reduce the total withdrawal charge because the
charge declines over time. We determine your total
withdrawal
charge by multiplying each payment by its applicable
withdrawal charge percentage and then totaling the
charges.
These withdrawals reduce the Withdrawal Charge Basis.
The withdrawal charge as a percentage of each Purchase
Payment withdrawn is as follows.
|
3. Purchase Payments within the withdrawal charge period
on a FIFO basis. The total amount we withdraw from the
first Purchase Payment is $55,000, which is subject to a
7%
withdrawal charge, and you receive $51,150. We determine
this amount as follows:
(amount withdrawn) x (1 – withdrawal charge) = the
amount you receive, or:
$55,000 x 0.93 = $51,150
The total amount we withdraw from the second Purchase
Payment is $9,620, which is subject to an 8% withdrawal
charge, and you receive $8,850. We determine this amount
as follows:
(amount withdrawn) x (1 – withdrawal charge) = the
amount you receive, or:
$9,620 x 0.92 = $8,850
|
|||
Number of
Complete Years
Since Purchase
Payment
|
Withdrawal Charge Amount
|
|
||
Contracts issued
on or before
April 30,2024
|
Contracts issued
on or after
May 1,2024
|
|
||
0
1
2
3
4
5
6 years or more
|
8.5%
8%
7%
6%
5%
4%
0%
|
8%
8%
7%
6%
5%
4%
0%
|
|
|
4. Finally, we withdraw any Contract earnings. This withdrawal is
not subject to a withdrawal charge and it does not reduce
the
Withdrawal Charge Basis.
|
4. Contract earnings. We already withdrew your requested
amount, so this does not apply.
In total we withdrew $74,620 from your
Contract, of
which you received $70,000 and paid a
withdrawal
charge of $4,620. We also reduced the 1st
Purchase
Payment from $55,000 to $0, and your 2nd
Purchase
Payment from $45,000 to $35,380 ($45,000
– $9,620).
Please note that this
example may differ from your
actual results due to
rounding.
|
• Upon a full withdrawal, the free withdrawal privilege is not available to you, and we apply a withdrawal charge
against Purchase Payments that are still within the
withdrawal charge period, including amounts previously
withdrawn under the free withdrawal privilege. On a full withdrawal, your Withdrawal Charge Basis may be
greater than your Contract Value because
the following reduce your Contract Value, but do not reduce your
Withdrawal Charge Basis:
|
– prior Penalty-Free Withdrawals,
|
– deductions we make for Contract fees and expenses other than the withdrawal charge, and/or
|
– poor performance.
|
This also means that
upon a full withdrawal you may not receive any money.
|
• Withdrawals (including any financial adviser fees that you choose to have us pay from this Contract) are subject to
ordinary income taxes, and may also be
subject to a 10% additional federal tax for amounts withdrawn before
age 59 1∕2. The amount of Contract Value available for withdrawal is also affected by the Daily Adjustment
(which can be negative)
unless taken on a Term End Date. If you have Index Options with different Term End
Dates, there may be no
time you can take a withdrawal without application of at least one Daily Adjustment.
Please consult with your
Financial Professional before requesting us to pay financial adviser fees from this
Contract rather than
from other assets you may have.
|
• For tax purposes, and in most instances, withdrawals from Non-Qualified Contracts are considered to come from
earnings first, not Purchase Payments.
|
|
Index Protection Strategy
with Trigger
|
Index Dual Precision Strategy,
Index Precision Strategy,
and
Index Performance Strategy
|
Index
Guard
Strategy
|
Daily Adjustment Maximum Potential Loss
|
0%
|
99%
|
35%
|
(as a percentage of Index Option Value, applies for
distributions from an Index Option before any Term
End Date)
|
|
|
|
• Withdrawals are subject to a withdrawal charge, income taxes, and may also be subject to a 10% additional federal
tax for amounts withdrawn before age 59 1∕2. The amount of Contract Value available for
withdrawal may also be
affected by the Daily Adjustment (which can be negative). Please consult with your Financial Professional
before
requesting us to pay
financial adviser fees from this Contract rather than from other assets you may have.
|
• Joint Owners: We send each Joint Owner a check for half of the
withdrawal amount and we tax report that Joint
Owner individually. Tax reporting each Joint Owner individually can create a discrepancy in taxation if only one
Joint Owner is under age
59 1∕2 because that Joint Owner may be subject to the 10% additional federal tax.
|
• We may be required to provide information about you or your Contract to government regulators. We may also be
required to stop Contract disbursements and thereby refuse
any transfer requests, and refuse to pay any withdrawals
(including a full withdrawal), or death benefits until we
receive instructions from the appropriate regulator. If,
pursuant to SEC rules, the AZL Government Money Market Fund
suspends payment of redemption proceeds in
connection with a fund liquidation, we will delay payment
of any transfer, full or partial withdrawal, or death benefit
from the Variable Option until the Fund is liquidated.
|
The free withdrawal privilege is not
available upon a full withdrawal.
|
• You should consult a tax adviser before purchasing a Qualified Contract that is subject to RMD payments.
|
• The minimum distribution program is not available if you have a Qualified Contract purchased through a
qualified plan.
|
• If you do not choose an Annuity Option before the Annuity Date, we make Annuity Payments to the Payee
under Annuity Option C with ten years of
guaranteed monthly payments.
|
• For Owners younger than age 59 1∕2, Annuity
Payments may be subject to a 10% additional federal tax.
|
• For a Qualified Contract, the Annuity Payments must end ten years after the Owner’s death.
|
• If Annuity Payments would be less than $100, we reserve the right to require you to take a full withdrawal and
your Contract will then terminate. We do
not assess a withdrawal charge on this full withdrawal.
|
• If on the maximum Annuity Date your Contract Value is greater than zero, you must annuitize the Contract.
We notify you of your available options in writing 60 days
in advance. If on your maximum Annuity Date you have
not selected an Annuity
Option, we make payments under Annuity Option C with ten years of guaranteed monthly
payments. Upon annuitization you no longer have Contract Value or a death benefit, and you cannot receive any
other periodic withdrawals or payments other than Annuity
Payments.
|
Standard Benefits (No Additional Charge)
|
||
Name of
Benefit
|
Purpose
|
Brief Description of
Restrictions/Limitations
|
Free
Withdrawal
Privilege
|
Allows you to withdraw up to 10% of your total
Purchase Payments each Contract Year without
incurring a withdrawal charge.
|
• Only available during the Accumulation Phase.
• Not available upon a full withdrawal.
• Unused free withdrawal amounts not available in
future years.
• Program withdrawals may be subject to negative
Daily Adjustments.
• Program withdrawals are subject to income taxes,
and may also be subject to a 10% additional
federal tax for amounts withdrawn before age
59 1∕2.
|
Minimum
Distribution
Program
|
Allows you to automatically take withdrawals to
satisfy the minimum distribution requirements (RMD)
imposed by the Internal Revenue Code.
|
• Only available during the Accumulation Phase.
• Only available to IRA or SEP IRA Contracts.
• Generally required for Inherited IRA and Inherited
Roth IRA Contracts.
• Program withdrawals count against free withdrawal
privilege.
• Program withdrawals may be subject to negative
Daily Adjustments.
• Program withdrawals are subject to income taxes.
• Program withdrawals may be monthly, quarterly,
semi-annual or annual, unless you have less than
$25,000 in Contract Value, in which case only
annual payments are available.
• We reserve the right to discontinue or modify the
program subject to the requirements of law.
|
Financial
Adviser
Fees
|
If you have a financial adviser and want to pay their
financial adviser fees from this Contract, you can
instruct us to withdraw the fee from your Contract
and pay it to your Financial Professional or Financial
Professional’s firm as instructed.
|
• Only available during the Accumulation Phase.
• Financial adviser fees are in addition to the
Contract’s fees and expenses.
• Deductions for financial adviser fees are treated as
withdrawals under the Contract.
• Program withdrawals count against free withdrawal
privilege.
• Program withdrawals may be subject to negative
Daily Adjustments.
• Program withdrawals are subject to withdrawal
charges, income taxes, and may also be subject to
a 10% additional federal tax for amounts
withdrawn before age 59 1∕2.
• We reserve the right to discontinue or modify the
program.
• See section 1 for an example of how deduction of
financial adviser fees impact the Contract.
|
Standard Benefits (No Additional Charge)
|
||
Name of
Benefit
|
Purpose
|
Brief Description of
Restrictions/Limitations
|
Waiver of
Withdrawal
Charge
Benefit
|
Waives withdrawal charges if you are confined for
care, or are unable to perform at least two out of six
activities of daily living (ADLs).
|
• Only available during the Accumulation Phase.
• Confinement must begin after the first Contract
Anniversary, be for at least 90 days in a 120-day
period, and requires proof of stay.
• Inability to perform two ADLs must be for at least
90 consecutive days and may require an exam or
tests by a physician.
• Not available on the Issue Date if any Owner was
confined to an eligible facility, or unable to perform
all six ADLs.
• Program withdrawals count against free withdrawal
privilege.
• Program withdrawals may be subject to negative
Daily Adjustments.
• Program withdrawals are not subject to withdrawal
charges, but are subject to income taxes, and may
also be subject to a 10% additional federal tax for
amounts withdrawn before age 59 1∕2.
• State variations may apply.
|
Traditional
Death Benefit
|
Provides a death benefit equal to the greater of the
Contract Value, or Guaranteed Death Benefit Value.
The Guaranteed Death Benefit Value is total
Purchase Payments adjusted for withdrawals.
An example of the death benefit provided by the
Traditional Death Benefit is included in section 10,
Death Benefit.
An example of how deduction of financial adviser
fees impact the death benefit is included in section 1.
|
• Benefit only available during the Accumulation
Phase.
• Withdrawals, including any negative Daily
Adjustments, may significantly reduce the benefit
as indicated in section 1, Financial Adviser Fee
Deduction Example.
• Restrictions on Purchase Payments may limit the
benefit.
• Annuitizing the Contract will end the benefit.
|
Standard Benefits (No Additional Charge)
|
||
Name of
Benefit
|
Purpose
|
Brief Description of
Restrictions/Limitations
|
Performance
Lock and Early
Reallocations
|
Performance Lock allows you to capture the current
Index Option Value during the Term for an Index
Option. Performance Lock can help eliminate doubt
about future Index performance and possibly limit the
impact of negative performance. Early Reallocation
allows you to transfer out of a locked Index Option
on days other than an Index Anniversary, or a Term
End Date.
A Performance Lock example is included in section
4, Valuing Your Contract — Performance Locks and
Early Reallocations.
|
• Available during the Accumulation Phase.
• Performance Locks must be executed before the
Term End Date.
• If a Performance Lock is executed, the locked
Index Option will no longer participate in Index
performance (positive or negative) for the
remainder of the Term, and will not receive a
Performance Credit on the Term End Date.
• You will not know your locked Index Option Value
in advance.
• The locked Index Option Value will reflect a Daily
Adjustment.
• If a Performance Lock is executed when Daily
Adjustment has declined, it will lock in any loss.
• A Performance Lock can be executed only once
each Term for each Index Option.
• Cannot execute a Performance Lock for only a
portion of the Index Option Value.
• Early Reallocation requests are not accepted
within 14 calendar days before an Index
Anniversary, and are limited to two Early
Reallocation requests each Index Year.
• Deductions (e.g. withdrawals, fees) decrease the
locked Index Option Value.
• Cannot transfer locked Index Option Value until the
next Index Anniversary that occurs on or
immediately after the Lock Date unless you
execute an Early Reallocation.
• We will not provide advice or notify you
regarding whether you should execute a
Performance Lock or Early Reallocation
or the
optimal time for doing so.
• We will not warn you if you execute a
Performance Lock or Early Reallocation
at a
sub-optimal time.
• We are not responsible for any losses related
to your decision whether or not to
execute a
Performance Lock or Early Reallocation.
|
Optional Benefits
|
|||
Name of
Benefit
|
Purpose
|
Maximum
Fee
|
Brief Description of
Restrictions/Limitations
|
Maximum
Anniversary
Value Death
Benefit
|
Provides a death benefit equal to the greater of
the Contract Value, or Guaranteed Death Benefit
Value. The Guaranteed Death Benefit Value is
the Maximum Anniversary Value.
An example of the death benefit provided by the
Maximum Anniversary Value Death Benefit, and
calculation of the Maximum Anniversary Value is
included in section 10, Death Benefit.
An example of how deduction of financial adviser
fees impact the death benefit is included in
section 1.
|
0.20%
(as a
percentage of
the Charge
Base)
|
• Must be age 75 or younger to elect.
• Can only be added to a Contract at issue.
• Replaces the Traditional Death Benefit if
elected.
• Benefit cannot be removed from the Contract.
• Only available during the Accumulation Phase.
• Withdrawals, including any negative Daily
Adjustment, may significantly reduce the
benefit as indicated in section 1, Financial
Adviser Fee Deduction Example.
• Withdrawals reduce the likelihood of lock in.
• Restrictions on Purchase Payments may limit
the benefit.
• Annuitizing the Contract will end the benefit.
|
|
Contract
Value
|
Maximum Anniversary Value
|
Issue Date
|
$ 100,000
|
$ 100,000
|
1st Index Anniversary
|
$ 110,000
|
$ 110,000
|
2nd Index Anniversary
|
$ 95,000
|
$ 110,000
|
3rd Index Anniversary
|
$ 105,000
|
$ 110,000
|
4th Index Anniversary
|
$ 120,000
|
$ 120,000
|
We base the Guaranteed Death Benefit Value on the first
death of a Determining Life (or Lives). This means that upon
the death of an Owner (or Annuitant if the Owner is a
non-individual), if a surviving spouse continues the Contract:
|
• the Guaranteed Death Benefit Value is no longer available, and
|
• if you selected the Maximum Anniversary Value Death Benefit, we no longer assess its 0.20% rider fee.
|
Also, if you and the
Determining Life (Lives) are different individuals and you die first, the Guaranteed Death Benefit
Value is not available
to your Beneficiary(ies).
|
Type of Contract
|
Persons and Entities that can own the Contract
|
IRA
|
Must have the same individual as Owner and Annuitant.
|
Roth IRA
|
Must have the same individual as Owner and Annuitant.
|
SEP IRA
|
Must have the same individual as Owner and Annuitant.
|
Certain Code Section 401 Plans
|
A qualified retirement plan is the Owner and the Annuitant must be an
individual who is a
participant in the plan. If the qualified retirement plan is a defined benefit
plan, the individual
must be the only participant in the plan.
We may determine which types of qualified retirement plans are eligible to
purchase this
Contract.
|
Inherited IRA and Inherited Roth IRA
|
Must have the same individual as Owner and Annuitant. The deceased owner of
the
previously held tax-qualified arrangement will also be listed in the titling
of the Contract.
|
|
2023
|
Commission paid
|
$ 57,927,291.63
|
Compensation Element
|
Description
|
Objective
|
Base Salary
|
Fixed rate of pay that compensates employees for
fulfilling their
basic job responsibilities. For NEOs, increases are
generally
provided in the case of a significant increase in
responsibilities
or a significant discrepancy versus the market.
|
Attract and retain high-caliber
leadership.
|
Annual Incentive Plan
|
Incentive compensation that promotes and rewards the
achievement of annual performance objectives through
awards
under the Allianz Life Annual Incentive Plan (“AIP”).
|
• Link compensation to annual
performance results.
• Attract and motivate
high-caliber leadership.
• Align the interests of NEOs
and our stockholder.
|
Performance-Based Equity
Incentives
|
Incentive compensation through restricted stock unit
awards
made under the Allianz Equity Incentive Plan (“AEI”)
that
promotes and rewards the achievement of long term
performance objectives.
|
• Retain high-caliber leadership
with multi-year vesting.
• Align the interests of NEOs
and our stockholder.
|
Severance Arrangements
|
Severance payments to employees, including NEOs, under
certain company-initiated termination events.
|
Compensate employees for
situations where the employee’s
employment is involuntarily
terminated in a qualifying
termination of employment.
|
Perquisites-Benefits
|
Perquisites provided to our NEOs include employer
matching
contributions to the NEOs’ accounts in the 401(k) plan
and may
also include the payment of life insurance premiums,
relocation
reimbursements, and reimbursements for financial
planning, tax
preparation services, and spousal travel expenses.
|
Provide market competitive total
compensation package.
|
Name and Principal
Position
(a)
|
Year
(b)
|
Salary
(c)
|
Bonus
(d)
|
Stock
Awards
(e)(1)
|
Non-Equity
Incentive Plan Compensation
(g)
|
All Other
Compensation
(i)(2)
|
Total
(j)
|
Jasmine M. Jirele
President and Chief Executive Officer
|
2023
|
$800,000
|
$0
|
$1,640,232
|
$1,093,488
|
$45,473
|
$3,579,193
|
2022
|
$750,000
|
$200,000
|
$1,348,875
|
$899,250
|
$23,810
|
$3,221,935
|
|
2021
|
$561,958
|
$390,000
|
$1,068,303
|
$712,202
|
$22,516
|
$2,754,979
|
|
William E. Gaumond
Senior Vice President, Chief Financial
Officer and Treasurer
|
2023
|
$532,625
|
$200,000
|
$689,811
|
$459,874
|
$45,504
|
$1,927,814
|
2022
|
$505,225
|
$0
|
$942,501
|
$428,334
|
$24,842
|
$1,900,902
|
|
2021
|
$475,900
|
$300,000
|
$770,958
|
$513,922
|
$22,437
|
$2,083,267
|
|
Eric J. Thomes
Senior Vice President, Chief Distribution
Officer
|
2023
|
$579,750
|
$0
|
$764,483
|
$509,656
|
$49,169
|
$1,903,058
|
2022
|
$555,750
|
$0
|
$719,772
|
$479,848
|
$29,026
|
$1,784,396
|
|
2021
|
$535,500
|
$320,000
|
$867,510
|
$578,340
|
$22,548
|
$2,323,898
|
|
Neil H. McKay
Senior Vice President, Chief Actuary
|
2023
|
$523,750
|
$0
|
$647,408
|
$431,605
|
$47,550
|
$1,650,313
|
2022
|
$517,500
|
$0
|
$657,981
|
$438,654
|
$23,622
|
$1,637,757
|
|
2021
|
$510,000
|
$50,000
|
$926,200
|
$550,800
|
$24,397
|
$2,061,397
|
|
Gretchen Cepek
Senior Vice President, General Counsel and
Secretary
|
2023
|
$513,250
|
$0
|
$633,876
|
$362,584
|
$45,349
|
$1,555,059
|
2022
|
$487,125
|
$0
|
$549,641
|
$366,427
|
$23,294
|
$1,426,487
|
|
2021
|
$469,500
|
$110,000
|
$733,825
|
$422,550
|
$22,167
|
$1,758,042
|
Name
|
Year
|
Spousal
Travel(3)
|
Milestone/
Anniversary/
Recognition(4)
|
Life
Insurance
Premiums
|
Employer
Match to
401(k) Plan
|
ASAAP
Contribution(5)
|
Other
Compensation(6)
|
Total
|
Jasmine M.
Jirele
|
2023
|
--
|
--
|
$723
|
$22,500
|
$2,250
|
$20,000
|
$45,473
|
2022
|
--
|
$250
|
$685
|
$20,500
|
$2,375
|
--
|
$23,810
|
|
2021
|
--
|
$350
|
$416
|
$19,500
|
$2,250
|
--
|
$22,516
|
|
William E.
Gaumond
|
2023
|
--
|
--
|
$754
|
$24,750
|
--
|
$20,000
|
$45,504
|
2022
|
--
|
$1,270
|
$697
|
$20,500
|
$2,375
|
--
|
$24,842
|
|
2021
|
--
|
--
|
$687
|
$19,500
|
$2,250
|
--
|
$22,437
|
|
Eric J.
Thomes
|
2023
|
$3,545
|
$50
|
$824
|
$24,750
|
--
|
$20,000
|
$49,169
|
2022
|
$5,366
|
--
|
$785
|
$22,875
|
--
|
--
|
$29,026
|
|
2021
|
--
|
--
|
$798
|
$19,500
|
$2,250
|
--
|
$22,548
|
|
Neil H. McKay
|
2023
|
$2,039
|
--
|
$761
|
$24,750
|
--
|
$20,000
|
$47,550
|
2022
|
--
|
--
|
$747
|
$22,875
|
--
|
--
|
$23,622
|
|
2021
|
$200
|
$1,700
|
$747
|
$21,750
|
--
|
--
|
$24,397
|
|
Gretchen
Cepek
|
2023
|
$175
|
--
|
$424
|
$24,750
|
--
|
$20,000
|
$45,349
|
2022
|
--
|
--
|
$419
|
$22,875
|
--
|
--
|
$23,294
|
|
2021
|
--
|
--
|
$417
|
$21,750
|
--
|
--
|
$22,167
|
Name
(a)
|
Grant Date
(b)
|
Estimated Future Payouts Under
Non-Equity
Incentive Plan Awards(1)
|
Estimated Future Payouts Under Equity
Incentive
Plan Awards(2,3)
|
||||
Threshold ($)
(c)
|
Target ($)
(d)
|
Maximum ($)
(e)
|
Threshold ($)
(f)
|
Target ($)
(g)
|
Maximum ($)
(h)
|
||
Jasmine M. Jirele
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$1,320,000
|
$5,940,000
|
AIP Award
|
|
$0
|
$880,000
|
$1,320,000
|
|
|
|
William E. Gaumond
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$575,322
|
$2,588,949
|
AIP Award
|
|
$0
|
$383,548
|
$575,322
|
|
|
|
Eric J. Thomes
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$626,215
|
$2,817,968
|
AIP Award
|
|
$0
|
$417,477
|
$626,216
|
|
|
|
Neil H. McKay
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$565,668
|
$2,545,506
|
AIP Award
|
|
$0
|
$377,112
|
$565,668
|
|
|
|
Gretchen Cepek
|
3/8/2024
|
|
|
|
|
|
|
RSUs (under AEI)
|
|
|
|
|
$0
|
$462,008
|
$2,079,036
|
AIP Award
|
|
$0
|
$308,005
|
$462,008
|
|
|
|
Name
(a)
|
RSUs
|
|
Number of RSUs
That Have Not
Vested
(g)(1,2)
|
Market Value of
RSUs That Have
Not Vested
(h)(3)
|
|
Jasmine M. Jirele
|
|
|
|
1,886
|
$505,090
|
|
2,407
|
$644,619
|
|
6,195
|
$1,659,083
|
|
7,371
|
$1,974,028
|
William E. Gaumond
|
|
|
|
1,948
|
$521,694
|
|
2,463
|
$659,616
|
|
4,471
|
$1,197,379
|
|
5,150
|
$1,379,222
|
Eric J. Thomes
|
|
|
|
1,474
|
$394,752
|
|
3,625
|
$970,811
|
|
5,031
|
$1,347,352
|
|
3,933
|
$1,053,297
|
Neil H. McKay
|
|
|
|
2,123
|
$568,561
|
|
2,503
|
$670,328
|
|
5,362
|
$1,435,997
|
|
3,596
|
$963,045
|
Gretchen Cepek
|
|
|
|
1,512
|
$404,929
|
|
1,789
|
$479,112
|
|
4,246
|
$1,137,121
|
|
3,003
|
$804,233
|
Name
|
Stock Awards
|
|
Number of
Shares
Acquired
on Vesting (#)
|
Value Realized
on Vesting ($)(1)
|
|
Jasmine M. Jirele
|
1,467
|
$341,350
|
William E. Gaumond
|
1,538
|
$357,870
|
Eric J. Thomes
|
457
|
$106,337
|
Neil H. McKay
|
1,731
|
$402,779
|
Gretchen Cepek
|
1,413
|
$328,785
|
NEOs
|
Lump Sum Payment
|
Jasmine M. Jirele
|
$1,200,000
|
William E. Gaumond
|
$807,750
|
Eric J. Thomes
|
$878,250
|
Neil H. McKay
|
$787,500
|
Gretchen Cepek
|
$780,000
|
Name
|
Fees Earned
or Paid in
Cash
($)(1)
|
Total
($)
|
(a)
|
(b)
|
(h)
|
Andreas G. Wimmer(2)
Chair of the Board
|
N/A
|
N/A
|
Jasmine M. Jirele(3)
President and Chief Executive
Officer
|
N/A
|
N/A
|
William E. Gaumond(3)
Senior Vice President, Chief
Financial Officer and Treasurer
|
N/A
|
N/A
|
Lauren Kathryn Day(2)
Non-Independent Director
|
N/A
|
N/A
|
Walter R. White
Former President and Chief
Executive Officer; Independent
Director
|
$67,500
|
$67,500
|
Howard E. Woolley
Independent Director
|
$67,500
|
$67,500
|
Kevin E. Walker
Independent Director
|
$67,500
|
$67,500
|
Udo Frank
Independent Director
|
$97,500
|
$97,500
|
Crediting Method / Index Options
|
Availability Restrictions:
|
Index Dual Precision Strategy 1-year Term with 10% Buffer are
available only to Contracts issued since November 14, 2023.
|
– Not available to Contracts issued before November 14, 2023.
– Not available to Contracts issued in Missouri, and Nebraska.
– Not available to Contracts issued in Virginia before May 13, 2024.
– Not available to Contracts issued in Idaho, Indiana, Louisiana,
Maryland, Montana, Nevada, and Wyoming before January 22,
2024.
– For Contracts issued in all other states, this Crediting Method first
became available to newly issued Contracts on November 14,
2023.
|
Index Dual Precision Strategy 1-year Term with 20% or 30% Buffer
are available only to Contracts issued since May 1, 2024.
|
– Not available to Contracts issued before May 1, 2024.
– Not available to Contracts issued in Idaho, Missouri, and Nebraska.
– Not available to Contracts issued in Virginia before May 13, 2024.
– For Contracts issued in all other states, these first became
available to newly issued Contracts on May 1, 2024.
|
Index Performance Strategy 1-year Term with 20% or 30% Buffer are
available only to Contracts issued since November 14, 2023.
|
– Not available to Contracts issued before November 14, 2023.
– Not available to Contracts issued in Missouri, and Nebraska.
– Not available to Contracts issued in Virginia before May 13, 2024.
– Not available to Contracts issued in Idaho, Indiana, Louisiana,
Maryland, Montana, Nevada, and Wyoming before January 22,
2024.
– For Contracts issued in all other states, these first became
available to newly issued Contracts on November 14, 2023.
|
Index Performance Strategy 6-year Term with 20% Buffer are
available only to Contracts issued since November 14, 2023.
|
– Not available to Contracts issued before November 14, 2023.
– Not available to Contracts issued in Missouri, and Nebraska.
– Not available to Contracts issued in Virginia before May 13, 2024.
– Not available to Contracts issued in Idaho, Indiana, Louisiana,
Maryland, Montana, Nevada, and Wyoming before January 22,
2024.
– For Contracts issued in all other states, these first became
available to newly issued Contracts on November 14, 2023.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
California
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We cannot restrict assignments or changes
of ownership.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner
is a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the
Owner’s death the
Beneficiary(s) will only receive the Contract Value.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
California
(continued)
|
Free Look/Right to Examine
Period
See section 3
|
For Owners age 60 or older (or Annuitants age 60 or older
for
non-individually owned Contracts), we are required to
allocate your initial
Purchase Payment to the AZL Government Money Market Fund
during the
30 day free look period unless you specify otherwise on
the appropriate
form. If you want to immediately apply your Purchase
Payment to the Index
Options you must opt out of this allocation. If you do not
opt out of this
allocation to the AZL Government Money Market Fund your
Index Effective
Date cannot occur until the free look period has ended.
|
|
Waiver of Withdrawal Charge
Benefit
See section 7
|
• Qualification for the portion of the benefit based on confinement for care
requiring a stay in an eligible facility is not
available.
• Qualification for the benefit is expanded to include requiring substantial
supervision due to severe cognitive impairment.
|
Connecticut
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We can only restrict assignments to
settlement companies and
institutional investors as described in
your Contract.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner
is a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the
Owner’s death the
Beneficiary(s) will only receive the Contract Value.
|
Florida
|
Withdrawal Charges
See Fee Tables and section 6
|
The total withdrawal charge on a partial or full
withdrawal cannot be greater
than 10% of the Contract Value withdrawn.
|
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We cannot restrict assignments or changes
of ownership.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner
is a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the
Owner’s death the
Beneficiary(s) will only receive the Contract Value.
|
|
Free Look/Right to Examine
Period
See section 3
|
We cannot allocate your initial Purchase Payment to the
Variable Option
during the free look period.
|
|
When Annuity Payments
Begin
See section 8
|
The earliest acceptable Annuity Date is the first Index
Anniversary.
|
Massachusetts
|
Waiver of Withdrawal Charge
Benefit
See section 7
|
This benefit is not available.
|
Montana
|
Access to Your Money
See section 7
|
If you take a partial withdrawal that reduces the Contract
Value below
$2,000, we contact you and give you the option of
modifying your withdrawal
request. If we cannot reach you within seven days of our
receipt of your
request in Good Order at our Service Center, we process
your request as a
full withdrawal.
|
New Jersey
|
Joint Owner
See section 2
|
We allow civil union partners to be Joint Owners.
|
|
Determining Life (Lives)
See section 2
|
We allow civil union partners to be joint Determining
Lives.
|
ISSUE STATE
|
FEATURE AND BENEFITS
|
VARIATION
|
New Jersey
(continued)
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We cannot restrict assignments or changes
of ownership.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner
is a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the
Owner’s death the
Beneficiary(s) will only receive the Contract Value.
|
|
Purchase Requirements
See section 3
|
The maximum total Purchase Payments that we can accept is
$10 million.
We must decline a Purchase Payment if it would cause total
Purchase
Payments to be more than $10 million, or if it would
otherwise violate the
Purchase Payment restrictions of your Contract (for
example, we do not
allow additional Purchase Payments on or after the Annuity
Date).
|
Ohio
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We cannot restrict assignments or changes
of ownership.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner
is a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the
Owner’s death the
Beneficiary(s) will only receive the Contract Value.
|
Pennsylvania
|
Waiver of Withdrawal Charge
Benefit
See section 7
|
The requirement to begin confinement after the first
Contract Anniversary in
an eligible facility (a hospital, nursing facility, or
assisted living facility) is at
least 90 days provided each day of confinement is no more
than 6 months
after the previous day of confinement.
|
Texas
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We cannot restrict assignments or changes
of ownership.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner
is a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the
Owner’s death the
Beneficiary(s) will only receive the Contract Value.
|
|
Access to Your Money
See section 7
|
We only treat a partial withdrawal that reduces the
Contract Value below
$2,000 as a full withdrawal if you have not made an
additional Purchase
Payment in the past two calendar years.
|
Wisconsin
|
Assignments, Changes of
Ownership and Other
Transfers of Contract Rights
See section 2
|
We cannot restrict assignments or changes
of ownership.
• We do not change the Determining Life (Lives) following an assignment or
ownership change. If you assign the Contract and the
Determining Life
(Lives) are no longer an Owner (or Annuitant if the Owner
is a
non-individual) the Traditional Death Benefit or Maximum
Anniversary
Value Death Benefit may not be available and on the
Owner’s death the
Beneficiary(s) will only receive the Contract Value.
|
Investment Objectives
|
Fund Adviser/Subadviser
|
Current
Expenses
|
Average Annual Total Returns
(as of December 31, 2023)
|
||
1 Year
|
5 Years
|
10 Years
|
|||
Current income consistent with
stability of principal
|
AZL®
Government Money
Market Fund(1)
Adviser: Allianz Investment
Management LLC
Subadviser: BlackRock
Advisors, LLC
|
0.87%
|
4.28%
|
1.32%
|
0.77%
|
Part I |
Year ended December 31, | ||||||||||||||||||||||||||||||||
Selected income data | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 17,633 | 14,427 | 14,291 | 10,542 | 13,029 | ||||||||||||||||||||||||||
Net investment income | 4,822 | 4,544 | 4,866 | 4,864 | 4,839 | |||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | (1,535) | (545) | 639 | (45) | 329 | |||||||||||||||||||||||||||
Fees from separate accounts | 436 | 488 | 574 | 567 | 613 | |||||||||||||||||||||||||||
Other income | 248 | (503) | (32) | 694 | (13) | |||||||||||||||||||||||||||
Total income | 21,604 | 18,411 | 20,338 | 16,622 | 18,797 | |||||||||||||||||||||||||||
Policyholder benefits and surrenders | 12,444 | 8,499 | 10,876 | 10,343 | 10,368 | |||||||||||||||||||||||||||
Change in aggregate reserves | 3,482 | 3,113 | 4,316 | 2,465 | 1,034 | |||||||||||||||||||||||||||
General and administrative and commission | 2,682 | 2,236 | 2,195 | 1,739 | 1,878 | |||||||||||||||||||||||||||
Net transfers to separate accounts | 834 | 1,732 | 2,424 | 1,460 | 5,254 | |||||||||||||||||||||||||||
Total benefits and other expenses | 19,442 | 15,580 | 19,811 | 16,007 | 18,534 | |||||||||||||||||||||||||||
Income tax expense (benefit) | 574 | (2) | 1,091 | 18 | 773 | |||||||||||||||||||||||||||
Net realized capital (loss) gain | (797) | (1,986) | 1,856 | 142 | 1,053 | |||||||||||||||||||||||||||
Net income | $ | 791 | 847 | 1,292 | 739 | 543 | ||||||||||||||||||||||||||
Capital and Surplus: | ||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 522 | (516) | (142) | (61) | 719 | ||||||||||||||||||||||||||
Dividends to parent | (500) | (4,100) | (900) | (750) | (325) | |||||||||||||||||||||||||||
Other change in capital & surplus | (294) | (421) | 2,794 | (220) | 441 | |||||||||||||||||||||||||||
Net change in capital & surplus | $ | 519 | (4,190) | 3,044 | (292) | 1,378 | ||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. |
As of December 31, | ||||||||||||||||||||||||||||||||
Selected balance sheet data | 2023 | 2022 | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||
Total cash and invested assets | $ | 121,141 | 115,664 | 122,829 | 125,229 | 121,870 | ||||||||||||||||||||||||||
Investment income due and accrued | 1,471 | 1,273 | 947 | 1,040 | 1,031 | |||||||||||||||||||||||||||
Other admitted assets | 2,473 | 1,684 | 1,480 | 1,218 | 945 | |||||||||||||||||||||||||||
Separate account assets | 52,781 | 43,502 | 48,279 | 45,901 | 34,638 | |||||||||||||||||||||||||||
Total admitted assets | 177,866 | 162,123 | 173,535 | 173,388 | 158,484 | |||||||||||||||||||||||||||
Total policyholder liabilities | 107,892 | 105,368 | 103,933 | 109,353 | 107,098 | |||||||||||||||||||||||||||
Other liabilities | 10,159 | 6,738 | 10,618 | 10,473 | 8,794 | |||||||||||||||||||||||||||
Separate account liabilities | 52,781 | 43,502 | 48,279 | 45,901 | 34,638 | |||||||||||||||||||||||||||
Total liabilities | 170,832 | 155,608 | 162,830 | 165,727 | 150,530 | |||||||||||||||||||||||||||
Total capital and surplus | $ | 7,034 | 6,515 | 10,705 | 7,661 | 7,954 |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 17,633 | 14,427 | 14,291 | $ | 3,206 | 22.2 | % | $ | 136 | 1.0 | % | |||||||||||||||||||||||||||||
Net investment income | 4,822 | 4,544 | 4,866 | 278 | 6.1 | (322) | (6.6) | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | (1,535) | (545) | 639 | (990) | (181.7) | (1,184) | (185.3) | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 436 | 488 | 574 | (52) | (10.7) | (86) | (15.0) | ||||||||||||||||||||||||||||||||||
Other income | 248 | (503) | (32) | 751 | 149.3 | (471) | (1,471.9) | ||||||||||||||||||||||||||||||||||
Total income | 21,604 | 18,411 | 20,338 | 3,193 | 17.3 | (1,927) | (9.5) | ||||||||||||||||||||||||||||||||||
Benefits and other expenses:
|
|||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 12,444 | 8,499 | 10,876 | 3,945 | 46.4 | (2,377) | (21.9) | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 3,482 | 3,113 | 4,316 | 369 | 11.9 | (1,203) | (27.9) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 2,682 | 2,236 | 2,195 | 446 | 19.9 | 41 | 1.9 | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | 834 | 1,732 | 2,424 | (898) | (51.8) | (692) | (28.5) | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 19,442 | 15,580 | 19,811 | 3,862 | 24.8 | (4,231) | (21.4) | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | 2,162 | 2,831 | 527 | (669) | (23.6) | 2,304 | 437.2 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 574 | (2) | 1,091 | 576 | NM** | (1,093) | NM** | ||||||||||||||||||||||||||||||||||
Net realized capital (loss) gain | (797) | (1,986) | 1,856 | 1,189 | 59.9 | (3,842) | (207.0) | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 791 | 847 | 1,292 | (56) | (6.6) | % | $ | (445) | (34.4) | % | ||||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 522 | (516) | (142) | 1,038 | 201.2 | % | $ | (374) | (263.4) | % | ||||||||||||||||||||||||||||||
Dividends to parent | (500) | (4,100) | (900) | 3,600 | 87.8 | (3,200) | (355.6) | ||||||||||||||||||||||||||||||||||
Other change in capital & surplus | (294) | (421) | 2,794 | 127 | 30.2 | (3,215) | (115.1) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 519 | (4,190) | 3,044 | 4,709 | 112.4 | % | $ | (7,234) | (237.6) | % | ||||||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. | |||||||||||||||||||||||||||||||||||||||||
**Not meaningful
|
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations* | $ | 15,906 | 12,811 | 12,766 | $ | 3,095 | 24.2 | % | $ | 45 | 0.4 | % | |||||||||||||||||||||||||||||
Net investment income | 4,289 | 4,056 | 4,467 | 233 | 5.7 | (411) | (9.2) | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | (1,554) | (531) | 656 | (1,023) | (192.7) | (1,187) | (180.9) | ||||||||||||||||||||||||||||||||||
Fees from separate accounts | 436 | 488 | 574 | (52) | (10.7) | (86) | (15.0) | ||||||||||||||||||||||||||||||||||
Other income | 239 | (501) | (37) | 740 | 147.7 | (464) | (1,254.1) | ||||||||||||||||||||||||||||||||||
Total income | 19,316 | 16,323 | 18,426 | 2,993 | 18.3 | (2,103) | (11.4) | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 11,993 | 8,150 | 10,584 | 3,843 | 47.2 | (2,434) | (23.0) | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 1,865 | 2,024 | 2,789 | (159) | (7.9) | (765) | (27.4) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 2,207 | 1,827 | 1,756 | 380 | 20.8 | 71 | 4.0 | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | 836 | 1,734 | 2,426 | (898) | (51.8) | (692) | (28.5) | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 16,901 | 13,735 | 17,555 | 3,166 | 23.1 | (3,820) | (21.8) | ||||||||||||||||||||||||||||||||||
Pretax income | 2,415 | 2,588 | 871 | (173) | (6.7) | 1,717 | 197.1 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 641 | (2) | 1,802 | 643 | NM** | (1,804) | NM** | ||||||||||||||||||||||||||||||||||
Net realized capital (loss) gain | (839) | (1,701) | 1,519 | 862 | 50.7 | (3,220) | (212.0) | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 935 | 889 | 588 | $ | 46 | 5.2 | % | $ | 301 | 51.2 | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 346 | (423) | (125) | $ | 769 | 181.8 | % | $ | (298) | (238.4) | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | (336) | (400) | 2,792 | 64 | 16.0 | (3,192) | (114.3) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 945 | 66 | 3,255 | $ | 879 | 1,331.8 | % | $ | (3,189) | (98.0) | % | |||||||||||||||||||||||||||||
*Includes premiums and annuity and supplementary contract considerations. | |||||||||||||||||||||||||||||||||||||||||
**Not meaningful
|
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Individual Annuities | |||||||||||||||||||||||||||||||||||||||||
Deposits | $ | 16,986 | 13,439 | 13,226 | 3,547 | 26.4 | % | 213 | 1.6 | % | |||||||||||||||||||||||||||||||
In-force | 146,794 | 139,294 | 141,131 | 7,500 | 5.4 | % | (1,837) | (1.3) | % |
Year ended December 31,
|
% change
|
||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||
Stock Index
|
|||||||||||||||||||||||||||||
S&P 500
|
24.23% | (19.44)% | 26.89% | 43.67% | (46.33)% | ||||||||||||||||||||||||
NASDAQ 100
|
53.81% | (32.97)% | 26.63% | 86.78% | (59.60)% | ||||||||||||||||||||||||
BUDBI
|
7.97% | (13.57)% | 6.35% | 21.54% | (19.92)% | ||||||||||||||||||||||||
BUDBI II
|
6.81% | (10.80)% | 4.60% | 17.61% | (15.40)% |
As of December 31,
|
Basis point (bps) change
|
||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||
Interest Rates
|
|||||||||||||||||||||||||||||
Swap rate - 10 year | 3.48% | 3.84% | 1.58% | (36bps) | 226bps | ||||||||||||||||||||||||
Swap rate - 20 year | 3.51% | 3.74% | 1.76% | (23bps) | 198bps |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations | $ | 1,549 | 1,447 | 1,363 | $ | 102 | 7.0 | % | $ | 84 | 6.2 | % | |||||||||||||||||||||||||||||
Net investment income | 369 | 328 | 259 | 41 | 12.5 | 69 | 26.6 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 13 | (21) | (23) | 34 | 161.9 | 2 | 8.7 | ||||||||||||||||||||||||||||||||||
Other income | 6 | (1) | 3 | 7 | 700.0 | (4) | (133.3) | ||||||||||||||||||||||||||||||||||
Total income | 1,937 | 1,753 | 1,602 | 184 | 10.5 | 151 | 9.4 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 310 | 232 | 194 | 78 | 33.6 | 38 | 19.6 | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 1,340 | 869 | 1,216 | 471 | 54.2 | (347) | (28.5) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 420 | 389 | 386 | 31 | 8.0 | 3 | 0.8 | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 2,070 | 1,490 | 1,796 | 580 | 38.9 | (306) | (17.0) | ||||||||||||||||||||||||||||||||||
Pretax income (loss) | (133) | 263 | (194) | (396) | (150.6) | 457 | 235.6 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (35) | — | (401) | (35) | NM* | 401 | 100.0 | ||||||||||||||||||||||||||||||||||
Net realized capital (loss) gain | 41 | (297) | 337 | 338 | 113.8 | (634) | (188.1) | ||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (57) | (34) | 544 | $ | (23) | (67.6) | % | $ | (578) | (106.3) | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 167 | (95) | (9) | $ | 262 | 275.8 | % | $ | (86) | (955.6) | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | (2) | (14) | 1 | 12 | 85.7 | (15) | (1,500.0) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | 108 | (143) | 536 | $ | 251 | 175.5 | % | $ | (679) | (126.7) | % | |||||||||||||||||||||||||||||
*Not meaningful
|
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Life | |||||||||||||||||||||||||||||||||||||||||
First year and renewal premiums | $ | 1,623 | 1,510 | 1,426 | $ | 113 | 7.5 | % | $ | 84 | 5.9 | % | |||||||||||||||||||||||||||||
In-force | 87,611 | 78,274 | 62,372 | 9,337 | 11.9 | 15,902 | 25.5 |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Income: | |||||||||||||||||||||||||||||||||||||||||
Premium and annuity considerations | $ | 178 | 169 | 162 | $ | 9 | 5.3 | % | $ | 7 | 4.3 | % | |||||||||||||||||||||||||||||
Net investment income | 164 | 160 | 140 | 4 | 2.5 | 20 | 14.3 | ||||||||||||||||||||||||||||||||||
Ceded reinsurance reserve and expense adjustments | 6 | 7 | 6 | (1) | (14.3) | 1 | 16.7 | ||||||||||||||||||||||||||||||||||
Other income | 3 | (1) | 2 | 4 | 400.0 | (3) | (150.0) | ||||||||||||||||||||||||||||||||||
Total income | 351 | 335 | 310 | 16 | 4.8 | 25 | 8.1 | ||||||||||||||||||||||||||||||||||
Benefits and other expenses: | |||||||||||||||||||||||||||||||||||||||||
Policyholder benefits and surrenders | 141 | 117 | 98 | 24 | 20.5 | 19 | 19.4 | ||||||||||||||||||||||||||||||||||
Change in aggregate reserves | 277 | 220 | 311 | 57 | 25.9 | (91) | (29.3) | ||||||||||||||||||||||||||||||||||
General and administrative and commission | 55 | 20 | 52 | 35 | 175.0 | (32) | (61.5) | ||||||||||||||||||||||||||||||||||
Net transfers to separate accounts | (1) | (2) | (2) | 1 | 50.0 | — | — | ||||||||||||||||||||||||||||||||||
Total benefits and other expenses | 472 | 355 | 459 | 117 | 33.0 | (104) | (22.7) | ||||||||||||||||||||||||||||||||||
Pretax (loss) income | (121) | (20) | (149) | (101) | (505.0) | 129 | 86.6 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (32) | — | (310) | (32) | NM* | 310 | 100.0 | ||||||||||||||||||||||||||||||||||
Net realized capital gain (loss) | 1 | 12 | — | (11) | (91.7) | 12 | NM* | ||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (88) | (8) | 161 | $ | (80) | (1,000.0) | % | $ | (169) | (105.0) | % | |||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Change in unrealized capital gain (loss) | $ | 9 | 3 | (8) | $ | 6 | 200.0 | % | $ | 11 | 137.5 | % | |||||||||||||||||||||||||||||
Other change in capital & surplus | 45 | (7) | 1 | 52 | 742.9 | (8) | (800.0) | ||||||||||||||||||||||||||||||||||
Net change in capital & surplus | $ | (34) | (12) | 154 | $ | (22) | (183.3) | % | $ | (166) | (107.8) | % | |||||||||||||||||||||||||||||
*Not meaningful |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Legacy | |||||||||||||||||||||||||||||||||||||||||
Gross premiums written
|
$ | 277 | 266 | 258 | $ | 11 | 4.1 | % | $ | 8 | 3.1 | % | |||||||||||||||||||||||||||||
In-force
|
2,248 | 2,421 | 2,611 | (173) | (7.1) | (190) | (7.3) |
Year ended December 31, | Increase (decrease) and % change | Increase (decrease) and % change | |||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2023 - 2022 | 2022 - 2021 | |||||||||||||||||||||||||||||||||||||
Capital and Surplus: | |||||||||||||||||||||||||||||||||||||||||
Dividends to parent | $ | (500) | (4,100) | (900) | $ | 3,600 | 12.2 | % | $ | (3,200) | (455.6) | % |
2023 | 2022 | ||||||||||||||||||||||
Carrying value | % of total | Carrying value | % of total | ||||||||||||||||||||
Bonds | $ | 89,197 | 73.6 | % | $ | 89,143 | 77.2 | % | |||||||||||||||
Stocks | 323 | 0.3 | 251 | 0.2 | |||||||||||||||||||
Investment in subsidiaries | 1,442 | 1.2 | 1,442 | 1.2 | |||||||||||||||||||
Mortgage loans on real estate | 18,115 | 15.0 | 17,728 | 15.3 | |||||||||||||||||||
Real estate | 92 | 0.1 | 82 | 0.1 | |||||||||||||||||||
Cash and cash equivalents | 3,431 | 2.8 | 2,232 | 1.9 | |||||||||||||||||||
Policy loans | 509 | 0.4 | 309 | 0.3 | |||||||||||||||||||
Derivative assets | 3,278 | 2.7 | 973 | 0.8 | |||||||||||||||||||
Other invested assets | 4,754 | 3.9 | 3,504 | 3.0 | |||||||||||||||||||
Total cash and invested assets | $ | 121,141 | 100.0 | % | $ | 115,664 | 100.0 | % |
2023 | |||||||||||||||||||||||
NAIC Classes | Fair Value | % of Total | Amortized Cost | % of Total | |||||||||||||||||||
1 | $ | 46,990 | 57.2 | % | $ | 50,969 | 57.1 | % | |||||||||||||||
2 | 33,518 | 40.8 | 36,377 | 40.9 | |||||||||||||||||||
Investment grade | 80,508 | 98.0 | 87,346 | 98.0 | |||||||||||||||||||
3 | 1,349 | 1.6 | 1,434 | 1.6 | |||||||||||||||||||
4 | 304 | 0.4 | 348 | 0.4 | |||||||||||||||||||
5 | 33 | — | 40 | — | |||||||||||||||||||
6 | 29 | — | 29 | — | |||||||||||||||||||
Below investment grade | 1,715 | 2.0 | 1,851 | 2.0 | |||||||||||||||||||
Total | $ | 82,223 | 100.0 | % | $ | 89,197 | 100.0 | % |
2022 | |||||||||||||||||||||||
NAIC Classes | Fair Value | % of Total | Amortized Cost | % of Total | |||||||||||||||||||
1 | $ | 43,251 | 55.3 | % | $ | 48,893 | 54.8 | % | |||||||||||||||
2 | 33,223 | 42.4 | 38,251 | 43.0 | |||||||||||||||||||
Investment grade | 76,474 | 97.7 | 87,144 | 97.8 | |||||||||||||||||||
3 | 1,484 | 1.9 | 1,648 | 1.8 | |||||||||||||||||||
4 | 234 | 0.3 | 264 | 0.3 | |||||||||||||||||||
5 | 75 | 0.1 | 84 | 0.1 | |||||||||||||||||||
6 | 2 | — | 3 | — | |||||||||||||||||||
Below investment grade | 1,795 | 2.3 | 1,999 | 2.2 | |||||||||||||||||||
Total | $ | 78,269 | 100.0 | % | $ | 89,143 | 100.0 | % |
2023 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 4,084 | 100.0 | % | 2023 | $ | 209 | 5.1 | % | |||||||||||||||||
2 | 2 | — | 2022 | 105 | 2.6 | |||||||||||||||||||||
3 | 1 | — | 2021 | 599 | 14.7 | |||||||||||||||||||||
4 | — | — | 2020 | 205 | 5.0 | |||||||||||||||||||||
5 | — | — | 2019 and prior | 2,969 | 72.6 | |||||||||||||||||||||
6 | — | — | $ | 4,087 | 100.0 | % | ||||||||||||||||||||
$ | 4,087 | 100.0 | % |
2022 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 5,093 | 100.0 | % | 2022 | $ | 11 | 0.2 | % | |||||||||||||||||
2 | 1 | — | 2021 | 557 | 10.9 | |||||||||||||||||||||
3 | 2 | — | 2020 | 208 | 4.1 | |||||||||||||||||||||
4 | — | — | 2019 | 955 | 18.7 | |||||||||||||||||||||
5 | — | — | 2018 and prior | 3,365 | 66.1 | |||||||||||||||||||||
6 | — | — | $ | 5,096 | 100.0 | % | ||||||||||||||||||||
$ | 5,096 | 100.0 | % |
2023 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 8,491 | 79.9 | % | 2023 | $ | 2,812 | 26.4 | % | |||||||||||||||||
2 | 1,836 | 17.3 | 2022 | 2,271 | 21.4 | |||||||||||||||||||||
3 | 145 | 1.4 | 2021 | 3,219 | 30.3 | |||||||||||||||||||||
4 | 94 | 0.9 | 2020 | 613 | 5.8 | |||||||||||||||||||||
5 | 30 | 0.3 | 2019 and prior | 1,707 | 16.1 | |||||||||||||||||||||
6 | 26 | 0.2 | $ | 10,622 | 100.0 | % | ||||||||||||||||||||
$ | 10,622 | 100.0 | % |
2022 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 6,556 | 74.0 | % | 2022 | $ | 2,782 | 31.4 | % | |||||||||||||||||
2 | 2,028 | 22.9 | 2021 | 3,476 | 39.2 | |||||||||||||||||||||
3 | 146 | 1.6 | 2020 | 593 | 6.7 | |||||||||||||||||||||
4 | 50 | 0.6 | 2019 | 519 | 5.9 | |||||||||||||||||||||
5 | 79 | 0.9 | 2018 and prior | 1,489 | 16.8 | |||||||||||||||||||||
6 | — | — | $ | 8,859 | 100.0 | % | ||||||||||||||||||||
$ | 8,859 | 100.0 | % |
2023 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 141 | 84.4 | % | 2023 | $ | — | — | % | |||||||||||||||||
2 | 6 | 3.6 | 2022 | — | — | |||||||||||||||||||||
3 | 1 | 0.6 | 2021 | — | — | |||||||||||||||||||||
4 | 8 | 4.8 | 2020 | — | — | |||||||||||||||||||||
5 | 9 | 5.4 | 2019 and prior | 167 | 100.0 | |||||||||||||||||||||
6 | 2 | 1.2 | $ | 167 | 100.0 | % | ||||||||||||||||||||
$ | 167 | 100.0 | % |
2022 | ||||||||||||||||||||||||||
NAIC Classes | Amortized Cost | % of Total | Vintage | Amortized Cost | % of Total | |||||||||||||||||||||
1 | $ | 170 | 87.6 | % | 2022 | $ | — | — | % | |||||||||||||||||
2 | 5 | 2.6 | 2021 | — | — | |||||||||||||||||||||
3 | 4 | 2.1 | 2020 | — | — | |||||||||||||||||||||
4 | 9 | 4.6 | 2019 | — | — | |||||||||||||||||||||
5 | 4 | 2.1 | 2018 and prior | 194 | 100.0 | |||||||||||||||||||||
6 | 2 | 1.0 | $ | 194 | 100.0 | % | ||||||||||||||||||||
$ | 194 | 100.0 | % |
2023 | |||||||||||||||||||||||
Investment Grade | % of Total | Below Investment Grade | % of Total | ||||||||||||||||||||
Twelve months or less below carrying value | $ | 154 | 1.9 | % | $ | 9 | 0.1 | % | |||||||||||||||
More than twelve months below carrying value | 7,611 | 96.1 | 154 | 1.9 | |||||||||||||||||||
Total | $ | 7,765 | 98.0 | % | $ | 163 | 2.0 | % |
2022 | |||||||||||||||||||||||
Investment Grade | % of Total | Below Investment Grade | % of Total | ||||||||||||||||||||
Twelve months or less below carrying value | $ | 8,543 | 75.6 | % | $ | 102 | 0.9 | % | |||||||||||||||
More than twelve months below carrying value | 2,548 | 22.5 | 114 | 1.0 | |||||||||||||||||||
Total | $ | 11,091 | 98.1 | % | $ | 216 | 1.9 | % |
2023 | 2022 | ||||||||||||||||||||||
Impairment | No. of Securities | Impairment | No. of Securities | ||||||||||||||||||||
Partnerships | $ | 2 | 2 | $ | — | 1 | |||||||||||||||||
Commercial mortgage loans | 46 | 4 | 48 | 1 | |||||||||||||||||||
Corporate securities | 73 | 46 | 84 | 58 | |||||||||||||||||||
Total | $ | 121 | 52 | $ | 132 | 60 |
2023 | 2022 | ||||||||||||||||||||||
Gross Carry Value | % of Total | Gross Carry Value | % of Total | ||||||||||||||||||||
Commercial mortgage loans by region | |||||||||||||||||||||||
East North Central | $ | 1,408 | 8.6 | % | $ | 1,429 | 9.0 | % | |||||||||||||||
East South Central | 561 | 3.4 | 448 | 2.8 | |||||||||||||||||||
Middle Atlantic | 1,384 | 8.5 | 1,303 | 8.2 | |||||||||||||||||||
Mountain | 1,849 | 11.4 | 1,645 | 10.4 | |||||||||||||||||||
New England | 603 | 3.7 | 576 | 3.6 | |||||||||||||||||||
Pacific | 4,397 | 27.0 | 4,439 | 28.0 | |||||||||||||||||||
South Atlantic | 3,518 | 21.6 | 3,574 | 22.5 | |||||||||||||||||||
West North Central | 1,045 | 6.4 | 984 | 6.2 | |||||||||||||||||||
West South Central | 1,516 | 9.3 | 1,457 | 9.2 | |||||||||||||||||||
Total commercial mortgage loans | $ | 16,281 | 100.0 | % | $ | 15,855 | 100.0 | % |
2023 | 2022 | ||||||||||||||||||||||
Gross Carry Value | % of Total | Gross Carry Value | % of Total | ||||||||||||||||||||
Residential mortgage loans by region | |||||||||||||||||||||||
East North Central | $ | 133 | 7.2 | % | $ | 139 | 7.4 | % | |||||||||||||||
East South Central | 35 | 1.9 | 30 | 1.6 | |||||||||||||||||||
Middle Atlantic | 424 | 23.1 | 441 | 23.5 | |||||||||||||||||||
Mountain | 168 | 9.2 | 181 | 9.7 | |||||||||||||||||||
New England | 106 | 5.8 | 115 | 6.1 | |||||||||||||||||||
Pacific | 584 | 31.8 | 587 | 31.3 | |||||||||||||||||||
South Atlantic | 266 | 14.5 | 269 | 14.4 | |||||||||||||||||||
West North Central | 11 | 0.6 | 12 | 0.6 | |||||||||||||||||||
West South Central | 107 | 5.8 | 100 | 5.3 | |||||||||||||||||||
Total residential mortgage loans | $ | 1,834 | 100.0 | % | $ | 1,873 | 100.0 | % |
2023 | 2022 | ||||||||||||||||||||||
Gross Carry Value | % of Total | Gross Carry Value | % of Total | ||||||||||||||||||||
Mortgage loans by property type | |||||||||||||||||||||||
Industrial | $ | 3,169 | 19.5 | % | $ | 3,018 | 19.0 | % | |||||||||||||||
Retail | 2,325 | 14.3 | 2,480 | 15.6 | |||||||||||||||||||
Office | 4,587 | 28.2 | 4,748 | 29.9 | |||||||||||||||||||
Apartments | 6,200 | 38.0 | 5,609 | 35.5 | |||||||||||||||||||
Total | $ | 16,281 | 100.0 | % | $ | 15,855 | 100.0 | % |
2023 | 2022 | 2021 | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 4,311 | 5,205 | (4,241) | ||||||||||||||||
Net cash (used in) provided by investing activities | (2,644) | 24 | 5,538 | |||||||||||||||||
Net cash (used in) provided by financing and miscellaneous activities | (468) | (6,212) | 1,008 | |||||||||||||||||
Net change in cash, cash equivalents, and short-term investments | $ | 1,199 | (983) | 2,305 |
Admitted Assets | 2023 | 2022 | ||||||||||||
Cash and invested assets: | ||||||||||||||
Bonds | $ | 89,197 | 89,143 | |||||||||||
Stocks | 323 | 251 | ||||||||||||
Investment in subsidiaries | 1,442 | 1,442 | ||||||||||||
Mortgage loans on real estate | 18,115 | 17,728 | ||||||||||||
Real estate | 92 | 82 | ||||||||||||
Cash, cash equivalents and short-term investments | 3,431 | 2,232 | ||||||||||||
Policy loans | 509 | 309 | ||||||||||||
Derivative assets | 3,278 | 973 | ||||||||||||
Other invested assets | 4,754 | 3,504 | ||||||||||||
Total cash and invested assets | 121,141 | 115,664 | ||||||||||||
Investment income due and accrued | 1,471 | 1,273 | ||||||||||||
Current federal and foreign income tax recoverable | 583 | 270 | ||||||||||||
Deferred tax asset, net | 564 | 379 | ||||||||||||
Other assets | 1,326 | 1,035 | ||||||||||||
Admitted assets, exclusive of separate account assets | 125,085 | 118,621 | ||||||||||||
Separate account assets | 52,781 | 43,502 | ||||||||||||
Total admitted assets | $ | 177,866 | 162,123 | |||||||||||
See accompanying notes to statutory financial statements. |
Liabilities and Capital and Surplus | 2023 | 2022 | ||||||||||||
Policyholder liabilities: | ||||||||||||||
Life policies and annuity contracts | $ | 91,114 | 98,386 | |||||||||||
Accident and health policies | 2,666 | 2,440 | ||||||||||||
Deposit-type contracts | 3,842 | 4,233 | ||||||||||||
Life policy and contract claims | 24 | 10 | ||||||||||||
Accident and health policy and contract claims | 24 | 22 | ||||||||||||
Funds held under reinsurance treaties | 10,034 | 139 | ||||||||||||
Other policyholder funds | 188 | 138 | ||||||||||||
Total policyholder liabilities | 107,892 | 105,368 | ||||||||||||
Interest maintenance reserve | 93 | 172 | ||||||||||||
General expenses due and accrued | 174 | 196 | ||||||||||||
Due from separate accounts | (1,325) | (751) | ||||||||||||
Current income taxes payable | 66 | 102 | ||||||||||||
Borrowed money | 2,515 | 2,010 | ||||||||||||
Asset valuation reserve | 1,442 | 1,266 | ||||||||||||
Derivative liabilities | 2,835 | 747 | ||||||||||||
Other liabilities | 4,359 | 2,996 | ||||||||||||
Liabilities, exclusive of separate account liabilities | 118,051 | 112,106 | ||||||||||||
Separate account liabilities | 52,781 | 43,502 | ||||||||||||
Total liabilities | 170,832 | 155,608 | ||||||||||||
Capital and surplus: | ||||||||||||||
Class A, Series A preferred stock, $1 par value. Authorized, issued, and outstanding, 8,909,195 shares; liquidation preference of $0 and $10 at December 31, 2023 and 2022, respectively | 9 | 9 | ||||||||||||
Class A, Series B preferred stock, $1 par value. Authorized, 10,000,000 shares; issued and outstanding, 9,994,289 shares; liquidation preference of $0 and $12 at December 31, 2023 and 2022, respectively | 10 | 10 | ||||||||||||
Common stock, $1 par value. Authorized, 40,000,000 shares; issued and outstanding, 20,000,001 shares at December 31, 2023 and 2022, respectively | 20 | 20 | ||||||||||||
Additional paid-in capital | 3,676 | 3,676 | ||||||||||||
Special surplus funds | (13) | (301) | ||||||||||||
Unassigned surplus | 3,332 | 3,101 | ||||||||||||
Total capital and surplus | 7,034 | 6,515 | ||||||||||||
Total liabilities and capital and surplus | $ | 177,866 | 162,123 | |||||||||||
See accompanying notes to statutory financial statements. |
2023 | 2022 | 2021 | ||||||||||||||||||
Income: | ||||||||||||||||||||
Premiums and annuity considerations | $ | 17,503 | 14,288 | 14,125 | ||||||||||||||||
Consideration for supplementary contracts | 130 | 139 | 166 | |||||||||||||||||
Net investment income | 4,822 | 4,544 | 4,866 | |||||||||||||||||
Commissions and expense allowances on reinsurance ceded | 736 | 649 | 1,093 | |||||||||||||||||
Reserve adjustments related to reinsurance ceded | (2,271) | (1,194) | (454) | |||||||||||||||||
Fees from separate accounts | 436 | 488 | 574 | |||||||||||||||||
Other | 248 | (503) | (32) | |||||||||||||||||
Total income | 21,604 | 18,411 | 20,338 | |||||||||||||||||
Benefits and other expenses: | ||||||||||||||||||||
Policyholder benefits | 1,860 | 1,846 | 2,076 | |||||||||||||||||
Surrenders | 10,584 | 6,653 | 8,800 | |||||||||||||||||
Change in aggregate reserves and deposit funds | 3,482 | 3,113 | 4,316 | |||||||||||||||||
Commissions and other agent compensation | 1,820 | 1,539 | 1,480 | |||||||||||||||||
General and administrative expenses | 862 | 697 | 715 | |||||||||||||||||
Net transfers to separate accounts | 834 | 1,732 | 2,424 | |||||||||||||||||
Total benefits and other expenses | 19,442 | 15,580 | 19,811 | |||||||||||||||||
Income from operations before federal income taxes and net realized capital gain | 2,162 | 2,831 | 527 | |||||||||||||||||
Income tax expense (benefit) | 574 | (2) | 1,091 | |||||||||||||||||
Net income (loss) from operations before net realized capital gain | 1,588 | 2,833 | (564) | |||||||||||||||||
Net realized capital (loss) gain, net of taxes and interest maintenance reserve | (797) | (1,986) | 1,856 | |||||||||||||||||
Net income | $ | 791 | 847 | 1,292 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
2023 | 2022 | 2021 | ||||||||||||||||||
Capital and surplus at beginning of year | $ | 6,515 | 10,705 | 7,661 | ||||||||||||||||
Change due to correction of accounting error (Note 3) | 34 | — | 40 | |||||||||||||||||
Adjusted balance at beginning of year | 6,549 | 10,705 | 7,701 | |||||||||||||||||
Net income | 791 | 847 | 1,292 | |||||||||||||||||
Change in unrealized capital gain (loss) | 522 | (516) | (142) | |||||||||||||||||
Change in net deferred income tax | 235 | 54 | 215 | |||||||||||||||||
Change in asset valuation reserve | (176) | (118) | (165) | |||||||||||||||||
Dividends paid to parent | (500) | (4,100) | (900) | |||||||||||||||||
Change in unamortized gain on reinsurance transactions | (305) | (254) | 2,737 | |||||||||||||||||
Other changes in capital and surplus | (82) | (103) | (33) | |||||||||||||||||
Capital and surplus at end of year | $ | 7,034 | 6,515 | 10,705 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
2023 | 2022 | 2021 | ||||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Premiums and annuity considerations, net | $ | 15,681 | 14,427 | 14,291 | ||||||||||||||||
Net investment income | 4,663 | 4,352 | 5,069 | |||||||||||||||||
Commissions and expense allowances on reinsurance ceded | 431 | 333 | 385 | |||||||||||||||||
Fees from separate accounts | 436 | 488 | 574 | |||||||||||||||||
Other | 9 | 148 | 256 | |||||||||||||||||
Cash provided by operating activities | 21,220 | 19,748 | 20,575 | |||||||||||||||||
Benefits and expenses paid: | ||||||||||||||||||||
Benefit and loss-related payments | 11,632 | 9,619 | 19,238 | |||||||||||||||||
Net transfers to separate accounts | 1,408 | 1,849 | 2,766 | |||||||||||||||||
Commissions, expenses paid, and aggregate write-ins for deductions | 3,036 | 2,459 | 2,119 | |||||||||||||||||
Income tax paid, net | 833 | 616 | 709 | |||||||||||||||||
Other | — | — | (16) | |||||||||||||||||
Cash used in operating activities | 16,909 | 14,543 | 24,816 | |||||||||||||||||
Net cash provided by (used in) operating activities | 4,311 | 5,205 | (4,241) | |||||||||||||||||
Cash flow from investing activities: | ||||||||||||||||||||
Proceeds from investments sold, matured or repaid: | ||||||||||||||||||||
Bonds | 14,591 | 19,619 | 30,622 | |||||||||||||||||
Stocks | 144 | 98 | 282 | |||||||||||||||||
Mortgage loans | 781 | 1,403 | 1,806 | |||||||||||||||||
Real estate | 1 | 5 | 3 | |||||||||||||||||
Other invested assets | 157 | 154 | 81 | |||||||||||||||||
Derivatives | — | — | 1,213 | |||||||||||||||||
Miscellaneous proceeds | 264 | 893 | 35 | |||||||||||||||||
Cash provided by investing activities | 15,938 | 22,172 | 34,042 | |||||||||||||||||
Cost of investments acquired: | ||||||||||||||||||||
Bonds | 14,777 | 15,529 | 24,350 | |||||||||||||||||
Stocks | 219 | 107 | 292 | |||||||||||||||||
Mortgage loans | 1,223 | 2,030 | 3,347 | |||||||||||||||||
Real estate | 12 | 11 | 17 | |||||||||||||||||
Other invested assets | 956 | 549 | 408 | |||||||||||||||||
Derivatives | 410 | 3,881 | — | |||||||||||||||||
Miscellaneous applications | 785 | — | 78 | |||||||||||||||||
Cash used in investing activities | 18,382 | 22,107 | 28,492 | |||||||||||||||||
Net increase in policy loans and premium notes | 200 | 41 | 12 | |||||||||||||||||
Net cash (used in) provided by investing activities | (2,644) | 24 | 5,538 | |||||||||||||||||
Cash flow from financing and miscellaneous activities: | ||||||||||||||||||||
Change in borrowed money | 500 | — | 500 | |||||||||||||||||
Payments on deposit-type contracts and other insurance liabilities, net of deposits | (1,135) | (1,203) | (1,264) | |||||||||||||||||
Dividends paid to parent | (500) | (4,100) | (900) | |||||||||||||||||
Other cash provided (used) | 667 | (909) | 2,672 | |||||||||||||||||
Net cash (used in) provided by financing and miscellaneous activities | (468) | (6,212) | 1,008 | |||||||||||||||||
Net change in cash, cash equivalents, and short-term investments | 1,199 | (983) | 2,305 | |||||||||||||||||
Cash, cash equivalents, and short-term investments: | ||||||||||||||||||||
Beginning of year | 2,232 | 3,215 | 910 | |||||||||||||||||
End of year | $ | 3,431 | 2,232 | 3,215 | ||||||||||||||||
See accompanying notes to statutory financial statements. |
2023 | 2022 | |||||||
Hedge adjustment balance - beginning of year | $ | 401 | 455 | |||||
Amount amortized into earnings during the year | (49) | (54) | ||||||
Hedge adjustment balance - end of year | $ | 352 | 401 |
2023 | 2022 | |||||||
Net deferred liability - beginning of year | $ | 300 | $ | 1,437 | ||||
Amortization | (219) | (269) | ||||||
Additional amounts deferred | (68) | (868) | ||||||
Net deferred liability - end of year | $ | 13 | $ | 300 |
Amortization year | Deferred assets | Deferred liabilities | |||||||||||||||
2024 | $ | (310) | $ | 528 | |||||||||||||
2025 | (310) | 528 | |||||||||||||||
2026 | (217) | 282 | |||||||||||||||
2027 | (124) | 37 | |||||||||||||||
2028 | (124) | 37 | |||||||||||||||
2029 | (123) | 36 | |||||||||||||||
2030 | (123) | 36 | |||||||||||||||
2031 | (123) | 36 | |||||||||||||||
2032 | (77) | 27 | |||||||||||||||
2033 | (22) | $ | 19 | ||||||||||||||
Total | $ | (1,553) | $ | 1,566 |
2023 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
U.S. government | $ | 5,218 | 37 | 474 | 4,781 | |||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S.
government
|
2 | — | — | 2 | ||||||||||||||||||||||
States and political subdivisions | 6,028 | 92 | 410 | 5,710 | ||||||||||||||||||||||
Foreign governments | 2,455 | 30 | 298 | 2,187 | ||||||||||||||||||||||
Corporate securities | 71,359 | 740 | 6,260 | 65,839 | ||||||||||||||||||||||
Mortgage-backed securities | 5,191 | 49 | 486 | 4,754 | ||||||||||||||||||||||
Collateralized debt obligations | 12 | 6 | — | 18 | ||||||||||||||||||||||
Total bonds | 90,265 | 954 | 7,928 | 83,291 | ||||||||||||||||||||||
Common stocks | 309 | 22 | 8 | 323 | ||||||||||||||||||||||
Total | $ | 90,574 | 976 | 7,936 | 83,614 |
2022 | ||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||
U.S. government | $ | 5,492 | 2 | 535 | 4,959 | |||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S.
government
|
2 | — | — | 2 | ||||||||||||||||||||||
States and political subdivisions | 6,768 | 76 | 600 | 6,244 | ||||||||||||||||||||||
Foreign governments | 1,949 | 2 | 336 | 1,615 | ||||||||||||||||||||||
Corporate securities | 69,765 | 315 | 9,191 | 60,889 | ||||||||||||||||||||||
Mortgage-backed securities | 6,287 | 29 | 645 | 5,671 | ||||||||||||||||||||||
Collateralized debt obligations | 12 | 8 | — | 20 | ||||||||||||||||||||||
Total bonds | 90,275 | 432 | 11,307 | 79,400 | ||||||||||||||||||||||
Common stocks | 260 | 8 | 17 | 251 | ||||||||||||||||||||||
Total | $ | 90,535 | 440 | 11,324 | 79,651 |
Carrying value |
Fair value | ||||||||||
Due in 1 year or less | $ | 2,099 | $ | 2,088 | |||||||
Due after 1 year through 5 years | 10,139 | 9,866 | |||||||||
Due after 5 years through 10 years | 16,704 | 15,562 | |||||||||
Due after 10 years through 20 years | 26,912 | 25,675 | |||||||||
Due after 20 years | 27,668 | 23,932 | |||||||||
No maturity date | 1,540 | 1,395 | |||||||||
Mortgage-backed and other structured securities
|
5,203 | 4,773 | |||||||||
Total bonds and other assets receiving bond treatment | $ | 90,265 | $ | 83,291 |
2023 | 2022 | 2021 | ||||||||||||||||||
Proceeds from sales | $ | 14,591 | 19,619 | 30,577 | ||||||||||||||||
Gross gains | 111 | 251 | 1,313 | |||||||||||||||||
Gross losses | 487 | 475 | 101 |
2023 | 2022 | 2021 | ||||||||||||||||||
Proceeds from sales | $ | 144 | 98 | 241 | ||||||||||||||||
Gross gains | 5 | 4 | 11 | |||||||||||||||||
Gross losses | 2 | 1 | — |
2023 | 2022 | 2021 | ||||||||||||||||||
Proceeds from sales | $ | — | — | 40 | ||||||||||||||||
Gross gains | — | — | 1 | |||||||||||||||||
Gross losses | — | — | — |
2023 | ||||||||||||||||||||||||||||||||||||||
12 months or less | Greater than 12 months | Total | ||||||||||||||||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||
U.S. government | $ | 77 | 1 | 3,535 | 473 | 3,612 | 474 | |||||||||||||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government | — | — | 2 | — | 2 | — | ||||||||||||||||||||||||||||||||
Foreign government | 165 | 5 | 1,453 | 293 | 1,618 | 298 | ||||||||||||||||||||||||||||||||
States and political subdivisions | 534 | 10 | 3,641 | 400 | 4,175 | 410 | ||||||||||||||||||||||||||||||||
Corporate securities | 4,334 | 144 | 43,962 | 6,116 | 48,296 | 6,260 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 177 | 3 | 4,067 | 483 | 4,244 | 486 | ||||||||||||||||||||||||||||||||
Total bonds | 5,287 | 163 | 56,660 | 7,765 | 61,947 | 7,928 | ||||||||||||||||||||||||||||||||
Common stock | 1 | — | 39 | 8 | 40 | 8 | ||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 5,288 | 163 | 56,699 | 7,773 | 61,987 | 7,936 |
2022 | ||||||||||||||||||||||||||||||||||||||
12 months or less | Greater than 12 months | Total | ||||||||||||||||||||||||||||||||||||
Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||||||||||||||||
Bonds: | ||||||||||||||||||||||||||||||||||||||
U.S. government | $ | 3,023 | 319 | 744 | 216 | 3,767 | 535 | |||||||||||||||||||||||||||||||
Agencies not backed by the full faith and credit of the U.S. government | 2 | — | — | — | 2 | — | ||||||||||||||||||||||||||||||||
Foreign government | 1,105 | 202 | 423 | 134 | 1,528 | 336 | ||||||||||||||||||||||||||||||||
States and political subdivisions | 4,770 | 574 | 49 | 26 | 4,819 | 600 | ||||||||||||||||||||||||||||||||
Corporate securities | 46,456 | 7,027 | 7,507 | 2,164 | 53,963 | 9,191 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | 4,912 | 524 | 512 | 121 | 5,424 | 645 | ||||||||||||||||||||||||||||||||
Total bonds | 60,268 | 8,646 | 9,235 | 2,661 | 69,503 | 11,307 | ||||||||||||||||||||||||||||||||
Common stock | 85 | 11 | 22 | 6 | 107 | 17 | ||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | 60,353 | 8,657 | 9,257 | 2,667 | 69,610 | 11,324 |
2023 | 2022 | 2021 | |||||||||||||||
Bonds | $ | (449) | (308) | 1,199 | |||||||||||||
Stocks | 3 | 3 | 11 | ||||||||||||||
Mortgage Loans | (46) | (46) | (8) | ||||||||||||||
Real estate | — | 1 | — | ||||||||||||||
Derivatives | (819) | (2,118) | 1,883 | ||||||||||||||
Other | 63 | 184 | (39) | ||||||||||||||
Total realized capital (losses) gains | (1,248) | (2,285) | 3,046 | ||||||||||||||
Income tax benefit (expense) on net realized gains (losses) | 102 | 43 | (249) | ||||||||||||||
Total realized capital (losses) gains, net of taxes | (1,146) | (2,242) | 2,797 | ||||||||||||||
Net (losses) gains transferred to IMR, net of taxes | (349) | (256) | 941 | ||||||||||||||
Net realized (losses) gains, net of taxes and IMR | $ | (797) | (1,986) | 1,856 |
2023 | 2022 | 2021 | |||||||||||||||
Interest: | |||||||||||||||||
Bonds | $ | 4,078 | 3,783 | 4,233 | |||||||||||||
Mortgage loans on real estate | 743 | 703 | 682 | ||||||||||||||
Policy loans | 18 | 13 | 12 | ||||||||||||||
Cash, cash equivalents, and short-term investments | 162 | 23 | — | ||||||||||||||
Dividends: | |||||||||||||||||
Stocks | 13 | 10 | 13 | ||||||||||||||
Investment in subsidiaries | 101 | 77 | 51 | ||||||||||||||
Rental income on real estate | 21 | 21 | 20 | ||||||||||||||
Derivatives | (65) | 19 | 37 | ||||||||||||||
Other | 21 | 10 | (92) | ||||||||||||||
Gross investment income | 5,092 | 4,659 | 4,956 | ||||||||||||||
Investment expenses | (304) | (155) | (137) | ||||||||||||||
Net investment income before amortization of IMR | 4,788 | 4,504 | 4,819 | ||||||||||||||
Amortization of IMR | 34 | 40 | 47 | ||||||||||||||
Net investment income | $ | 4,822 | 4,544 | 4,866 |
2023 | 2022 | ||||||||||
Gross | $ | 1,471 | 1,273 | ||||||||
Nonadmitted | — | — | |||||||||
Admitted | $ | 1,471 | 1,273 |
2023 | 2022 | ||||||||||
Cumulative amounts of PIK interest included in the current principal balance | $ | 10 | — |
2023 | 2022 | ||||||||||||||||
Concentration Amount | Concentration % | Concentration Amount | Concentration % | ||||||||||||||
California | $ | 3,516 | 21.6 | % | $ | 3,545 | 22.4 | % |
2023 | 2022 | ||||||||||||||||
Concentration Amount | Concentration % | Concentration Amount | Concentration % | ||||||||||||||
California | $ | 541 | 29.5 | % | $ | 546 | 29.2 | % | |||||||||
New York | 231 | 12.6 | % | 238 | 12.7 | % |
2023 | 2022 | ||||||||||||||||
Residential | Commercial | Residential | Commercial | ||||||||||||||
Current | $ | 1,786 | 16,225 | 1,799 | 15,855 | ||||||||||||
30-59 Days Past Due | — | — | 27 | — | |||||||||||||
60-89 Days Past Due | — | — | 8 | — | |||||||||||||
90-179 Days Past Due | 18 | — | 16 | — | |||||||||||||
180+ Days Past Due | 30 | 56 | 23 | — | |||||||||||||
Total | $ | 1,834 | 16,281 | 1,873 | 15,855 |
2023 | 2022 | ||||||||||
Balance at beginning of period | $ | — | — | ||||||||
Additions charged to operations | 16 | — | |||||||||
Direct write-downs charged against the allowances | — | — | |||||||||
Recoveries of amounts previously charged off | — | — | |||||||||
Balance at end of period | $ | 16 | — |
Debt Service Coverage Ratios | |||||||||||||||||||||||||||||||||||
2023 | Greater than 1.4x | 1.2x – 1.4x | 1.0x – 1.2x | Less than 1.0x | Total | Percent of Total | |||||||||||||||||||||||||||||
Loan-to-value ratios: | |||||||||||||||||||||||||||||||||||
Less than 50% | $ | 6,071 | 274 | 278 | 171 | 6,794 | 41.7 | % | |||||||||||||||||||||||||||
50% – 60% | 5,211 | 762 | 370 | 198 | 6,541 | 40.2 | % | ||||||||||||||||||||||||||||
60% – 70% | 1,953 | 325 | 114 | 148 | 2,540 | 15.6 | % | ||||||||||||||||||||||||||||
70% – 80% | 109 | — | 124 | — | 233 | 1.4 | % | ||||||||||||||||||||||||||||
80% – 90% | — | — | 50 | — | 50 | 0.3 | % | ||||||||||||||||||||||||||||
90% – 100% | — | — | 63 | — | 63 | 0.4 | % | ||||||||||||||||||||||||||||
Greater than 100% | — | — | 60 | — | 60 | 0.4 | % | ||||||||||||||||||||||||||||
Total | $ | 13,344 | 1,361 | 1,059 | 517 | 16,281 | 100.0 | % |
Debt Service Coverage Ratios | |||||||||||||||||||||||||||||||||||
2022 | Greater than 1.4x | 1.2x – 1.4x | 1.0x – 1.2x | Less than 1.0x | Total | Percent of Total | |||||||||||||||||||||||||||||
Loan-to-value ratios: | |||||||||||||||||||||||||||||||||||
Less than 50% | $ | 4,784 | 82 | 376 | 676 | 5,918 | 37.3 | % | |||||||||||||||||||||||||||
50% – 60% | 4,298 | 896 | 202 | 950 | 6,346 | 40.0 | % | ||||||||||||||||||||||||||||
60% – 70% | 2,201 | 571 | 223 | 464 | 3,459 | 21.8 | % | ||||||||||||||||||||||||||||
70% – 80% | 90 | 28 | — | 14 | 132 | 0.9 | % | ||||||||||||||||||||||||||||
80% – 90% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
90% – 100% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
Greater than 100% | — | — | — | — | — | — | % | ||||||||||||||||||||||||||||
Total | $ | 11,373 | 1,577 | 801 | 2,104 | 15,855 | 100.0 | % |
2023 | 2022 | ||||||||||||||||||||||
Total | Percent of Total | Total | Percent of Total | ||||||||||||||||||||
Loan-to-value ratios: | |||||||||||||||||||||||
Below 70% | $ | 659 | 35.9 | % | $ | 604 | 32.2 | % | |||||||||||||||
70% to 79% | 959 | 52.3 | % | 1,043 | 55.7 | % | |||||||||||||||||
80% to 89% | 197 | 10.7 | % | 208 | 11.1 | % | |||||||||||||||||
90% to 95% | 12 | 0.7 | % | 16 | 0.9 | % | |||||||||||||||||
Above 95% | 7 | 0.4 | % | 2 | 0.1 | % | |||||||||||||||||
Total | $ | 1,834 | 100.0 | % | $ | 1,873 | 100.0 | % |
2023 | 2022 | ||||||||||
The total recorded investment in restructured loans, as of year-end | $ | 38 | — | ||||||||
The realized capital losses related to these loans | 19 | — | |||||||||
Total contractual commitments to extend credit to debtors owing receivables whose terms have been modified in troubled debt restructuring | — | — |
OTTI Recognized in Loss | |||||||||||||||||||||||
Year ended | Amortized Cost Basis Before OTTI | Interest | Non-Interest | Fair Value | |||||||||||||||||||
OTTI Recognized: | |||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Intent to sell | $ | 81 | 20 | (1) | 62 | ||||||||||||||||||
Annual aggregate total | $ | 81 | 20 | (1) | 62 | ||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Intent to sell | $ | 136 | 23 | 3 | 110 | ||||||||||||||||||
Annual aggregate total | $ | 136 | 23 | 3 | 110 | ||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Intent to sell | $ | 41 | 3 | — | 38 | ||||||||||||||||||
Annual aggregate total | $ | 41 | 3 | — | 38 |
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Gross Fair Value | Gross Fair Value | |||||||||||||||||||||||||||||||||||||
Notional (1)
|
Assets | Liabilities |
Notional (1)
|
Assets | Liabilities | |||||||||||||||||||||||||||||||||
Cash flow hedging instruments | ||||||||||||||||||||||||||||||||||||||
Foreign currency swaps | $ | 2,048 | 143 | (9) | 1,959 | 243 | (1) | |||||||||||||||||||||||||||||||
Total cash flow hedging instruments | $ | 143 | (9) | 243 | (1) | |||||||||||||||||||||||||||||||||
Fair value hedging instruments | ||||||||||||||||||||||||||||||||||||||
IRS | $ | 76,595 | 19 | (206) | 69,692 | 21 | (211) | |||||||||||||||||||||||||||||||
Total fair value hedging instruments | $ | 19 | (206) | $ | 21 | (211) | ||||||||||||||||||||||||||||||||
Nonqualifying hedging instruments | ||||||||||||||||||||||||||||||||||||||
OTC options | $ | 51,904 | 2,895 | (2,383) | 43,355 | 670 | (494) | |||||||||||||||||||||||||||||||
ETO | 16,191 | 76 | (182) | 1,185 | 25 | (5) | ||||||||||||||||||||||||||||||||
TBA securities | 457 | 1 | (1) | 1,071 | 1 | (8) | ||||||||||||||||||||||||||||||||
IRS | 425 | 6 | (12) | 3,762 | 7 | (14) | ||||||||||||||||||||||||||||||||
Futures | 18,988 | — | — | 8,405 | — | — | ||||||||||||||||||||||||||||||||
TRS | 4,953 | 138 | (42) | 3,459 | 6 | (14) | ||||||||||||||||||||||||||||||||
Total nonqualifying hedging instruments | 3,116 | (2,620) | 709 | (535) | ||||||||||||||||||||||||||||||||||
Total derivative instruments | $ | 3,278 | (2,835) | 973 | (747) | |||||||||||||||||||||||||||||||||
(1) Notional amounts are presented on an absolute basis.
|
||||||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||
2023 | 2022 | |||||||||||||
Cash | ||||||||||||||
Open | 2,600 | 1,892 | ||||||||||||
30 days or less | — | — | ||||||||||||
31 to 60 days | — | — | ||||||||||||
61 to 90 days | — | — | ||||||||||||
Greater than 90 days | — | — | ||||||||||||
Subtotal | 2,600 | 1,892 | ||||||||||||
Securities received | 74 | 263 | ||||||||||||
Total collateral received | $ | 2,674 | 2,155 |
2023 | 2022 | |||||||||||||||||||||||||
Amortized cost | Fair value | Amortized cost | Fair value | |||||||||||||||||||||||
Open | — | — | — | — | ||||||||||||||||||||||
30 days or less | 1,373 | 1,374 | 969 | 969 | ||||||||||||||||||||||
31 to 60 days | 439 | 439 | 338 | 338 | ||||||||||||||||||||||
61 to 90 days | 11 | 11 | 26 | 26 | ||||||||||||||||||||||
91 to 120 days | 195 | 195 | 117 | 117 | ||||||||||||||||||||||
121 to 180 days | 189 | 189 | 156 | 156 | ||||||||||||||||||||||
181 to 365 days | 393 | 393 | 286 | 287 | ||||||||||||||||||||||
Greater than 1 year | — | — | — | — | ||||||||||||||||||||||
Total collateral reinvested | $ | 2,600 | 2,601 | 1,892 | 1,893 |
2023 | 2022 | ||||||||||
Cash and cash equivalents | $ | 2,330 | 1,254 | ||||||||
Short-term investments | 270 | 638 | |||||||||
Total | $ | 2,600 | 1,892 |
As of year end | 2023 | 2022 | ||||||||||||||||||
1. Maturity
|
||||||||||||||||||||
a. Overnight
|
$ | 1,405 | 460 | |||||||||||||||||
b. 2 Days to 1 Week
|
— | — | ||||||||||||||||||
2. Collateral Pledged and Securities Acquired Under Repo
|
||||||||||||||||||||
a. Cash Collateral Pledged - Secured Borrowing
|
$ | 1,405 | 460 | |||||||||||||||||
b. Fair Value of Securities Acquired Under Repo - Secured Borrowing
|
1,405 | 460 |
Maximum Amount | 2023 | 2022 | ||||||||||||||||||
1. Maturity | ||||||||||||||||||||
a. Overnight | $ | 1,460 | 997 | |||||||||||||||||
b. 2 Days to 1 Week | 15 | 303 | ||||||||||||||||||
c. Greater than one week and less than one month | 100 | |||||||||||||||||||
2. Collateral Pledged and Securities Acquired Under Repo | ||||||||||||||||||||
a. Cash Collateral Pledged - Secured Borrowing | $ | 1,460 | 1,165 | |||||||||||||||||
b. Fair Value of Securities Acquired Under Repo - Secured Borrowing | 1,460 | 1,167 |
SCA Name | Gross Asset | Non-Admitted Asset | Net Admitted Assets | NAIC Filing Date | NAIC Filing Type | NAIC Filing Balance | Re-submission Required? | |||||||||||||||||||||||||||||||||||||
AZLPF | $ | 704 | — | 704 | 7/25/2023 | S1 | 721 | N | ||||||||||||||||||||||||||||||||||||
Total | $ | 704 | — | 704 | XXX | XXX | 721 | XXX |
2023 | 2022 | |||||||||||||
Carrying value | $ | 3,229 | 2,372 | |||||||||||
Fair value | 2,500 | 2,308 |
2023 | 2022 | |||||||||||||
Carrying value | $ | 4,642 | 2,774 | |||||||||||
Fair value | 4,087 | 2,928 |
Gross Restricted | Percentage | |||||||||||||||||||||||||||||||||||||||||||||||||
Total general account | Total separate account | Total current year | Total prior year | Increase (decrease) | Total current year admitted restricted | Gross restricted to total assets | Admitted restricted to total admitted assets | |||||||||||||||||||||||||||||||||||||||||||
Collateral held under security lending arrangements | $ | 2,674 | 760 | 3,434 | 3,334 | 100 | 3,434 | 1.5 | % | 1.5 | % | |||||||||||||||||||||||||||||||||||||||
FHLB capital stock | 123 | — | 123 | 90 | 33 | 123 | — | — | ||||||||||||||||||||||||||||||||||||||||||
On deposit with states | 4 | — | 4 | 4 | — | 4 | — | — | ||||||||||||||||||||||||||||||||||||||||||
On deposit with other regulatory bodies | 27 | — | 27 | 27 | — | 27 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Pledged as collateral to FHLB (including assets backing funding agreements) | 3,229 | — | 3,229 | 2,372 | 857 | 3,229 | 1.8 | 1.8 | ||||||||||||||||||||||||||||||||||||||||||
Derivative collateral | 2,640 | — | 2,640 | 1,553 | 1,087 | 2,640 | 1.5 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||
Reinsurance assets | 22,403 | — | 22,403 | 24,143 | (1,740) | 22,403 | 12.6 | 12.6 | ||||||||||||||||||||||||||||||||||||||||||
Total restricted assets | $ | 31,100 | 760 | 31,860 | 31,523 | 337 | 31,860 | 17.4 | % | 17.4 | % | |||||||||||||||||||||||||||||||||||||||
2023 | ||||||||||||||||||||||||||
Level 1 |
Level 2 (a)
|
Level 3 | Total | |||||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||||||||
Bonds | $ | 1 | 4 | — | 5 | |||||||||||||||||||||
Common stocks | 197 | — | 4 | 201 | ||||||||||||||||||||||
Derivative assets | 76 | 3,064 | 137 | 3,277 | ||||||||||||||||||||||
Separate account assets | 15,816 | 8,582 | — | 24,398 | ||||||||||||||||||||||
Other invested assets | — | — | 242 | 242 | ||||||||||||||||||||||
Total assets reported at fair value | $ | 16,090 | 11,650 | 383 | 28,123 | |||||||||||||||||||||
Liabilities at fair value: | ||||||||||||||||||||||||||
Derivative liabilities | $ | 182 | 2,611 | 42 | 2,835 | |||||||||||||||||||||
Separate account derivative liabilities | — | 5,249 | — | 5,249 | ||||||||||||||||||||||
Total liabilities reported at fair value | $ | 182 | 7,860 | 42 | 8,084 | |||||||||||||||||||||
(a) The Company does not have any assets or liabilities measured at net asset value (NAV) that are included in Level 2
within this table.
|
2022 | ||||||||||||||||||||||||||
Level 1 |
Level 2 (a)
|
Level 3 | Total | |||||||||||||||||||||||
Assets at fair value: | ||||||||||||||||||||||||||
Bonds | $ | 1 | 3 | — | 4 | |||||||||||||||||||||
Common stocks | 155 | — | 5 | 160 | ||||||||||||||||||||||
Derivative assets | 25 | 1,065 | 6 | 1,096 | ||||||||||||||||||||||
Separate account assets | 15,872 | 3,062 | — | 18,934 | ||||||||||||||||||||||
Total assets reported at fair value | $ | 16,053 | 4,130 | 11 | 20,194 | |||||||||||||||||||||
Liabilities at fair value: | ||||||||||||||||||||||||||
Derivative liabilities | $ | 5 | 741 | 14 | 760 | |||||||||||||||||||||
Separate account derivative liabilities | — | 2,940 | — | 2,940 | ||||||||||||||||||||||
Total liabilities reported at fair value | $ | 5 | 3,681 | 14 | 3,700 | |||||||||||||||||||||
(a) The Company does not have any assets or liabilities measured at NAV that are included in Level 2 within this table.
|
January 1, 2023 | Transfers into Level 3 |
Transfers out of Level 3 |
Total gains and (losses) included in Net Income |
Total gains and (losses) included in Surplus |
Purchases, issuances, sales and settlements | December 31, 2023 | |||||||||||||||||
Common stocks | $ | 5 | — | — | — | (1) | — | 4 | |||||||||||||||
TRS assets | 6 | — | — | 316 | 131 | (316) | 137 | ||||||||||||||||
Other invested assets | — | 242 | — | — | — | — | 242 | ||||||||||||||||
Total Level 3 Assets | $ | 11 | 242 | — | 316 | 130 | (316) | 383 | |||||||||||||||
TRS liabilities | $ | (14) | — | — | (375) | (28) | 375 | (42) | |||||||||||||||
Total Level 3 Liabilities | $ | (14) | — | — | (375) | (28) | 375 | (42) |
January 1, 2022 | Transfers into Level 3 |
Transfers out of Level 3 |
Total gains and (losses) included in Net Income |
Total gains and (losses) included in Surplus |
Purchases, issuances, sales and settlements | December 31, 2022 | |||||||||||||||||
Preferred stocks | $ | — | — | — | — | — | — | — | |||||||||||||||
Common stocks | — | — | — | — | (2) | 7 | 5 | ||||||||||||||||
TRS assets | — | — | — | 419 | 6 | (419) | 6 | ||||||||||||||||
Total Level 3 Assets | $ | — | — | — | 419 | 4 | (412) | 11 | |||||||||||||||
TRS liabilities | $ | (15) | — | — | (871) | 1 | 871 | (14) | |||||||||||||||
Total Level 3 Liabilities | $ | (15) | — | — | (871) | 1 | 871 | (14) |
2023 | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Aggregate Fair Value | Admitted Assets/ Carrying Value |
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||
Bonds | $ | 82,223 | 89,197 | 5,412 | 52,057 | 24,754 | ||||||||||||||||||||||||||
Common stocks, unaffiliated | 323 | 323 | 197 | — | 126 | |||||||||||||||||||||||||||
Mortgage loans on real estate | 16,664 | 18,115 | — | — | 16,664 | |||||||||||||||||||||||||||
Cash equivalents | 3,176 | 3,176 | 1,485 | 1,405 | 286 | |||||||||||||||||||||||||||
Short-term investments | 612 | 613 | 595 | 5 | 12 | |||||||||||||||||||||||||||
Derivative assets | 3,278 | 3,278 | 77 | 3,064 | 137 | |||||||||||||||||||||||||||
Securities lending reinvested collateral assets | 2,601 | 2,600 | — | 2,601 | — | |||||||||||||||||||||||||||
Other invested assets | 1,886 | 1,905 | — | 131 | 1,755 | |||||||||||||||||||||||||||
COLI | 750 | 750 | — | 750 | — | |||||||||||||||||||||||||||
Separate account assets | 49,938 | 52,781 | 16,397 | 28,000 | 5,541 | |||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Deposit-type contracts | $ | 3,913 | 3,842 | — | — | 3,913 | ||||||||||||||||||||||||||
Other investment contracts | 82,589 | 80,474 | — | — | 82,589 | |||||||||||||||||||||||||||
Borrowed money | 2,569 | 2,515 | — | — | 2,569 | |||||||||||||||||||||||||||
Derivative liabilities | 2,835 | 2,835 | 182 | 2,611 | 42 | |||||||||||||||||||||||||||
Payable for securities lending | 2,600 | 2,600 | — | 2,600 | — | |||||||||||||||||||||||||||
Payable for securities | 117 | 117 | — | — | 117 | |||||||||||||||||||||||||||
Separate account liabilities | 49,938 | 52,781 | 16,397 | 28,000 | 5,541 | |||||||||||||||||||||||||||
(b) The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In
addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value.
|
2022 | ||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Aggregate Fair Value | Admitted Assets/ Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||||||||
Bonds | $ | 78,268 | 89,143 | 4,708 | 55,058 | 18,502 | ||||||||||||||||||||||||||
Common stocks, unaffiliated | 251 | 251 | 156 | — | 95 | |||||||||||||||||||||||||||
Mortgage loans on real estate | 16,020 | 17,728 | — | — | 16,020 | |||||||||||||||||||||||||||
Cash equivalents | 1,489 | 1,488 | 1,029 | 460 | — | |||||||||||||||||||||||||||
Short-term investments | 783 | 783 | 778 | — | 5 | |||||||||||||||||||||||||||
Derivative assets | 1,096 | 973 | 25 | 1,065 | 6 | |||||||||||||||||||||||||||
Securities lending reinvested collateral assets | 1,892 | 1,892 | — | 1,892 | — | |||||||||||||||||||||||||||
Other invested assets | 1,408 | 1,439 | — | 94 | 1,314 | |||||||||||||||||||||||||||
COLI | 692 | 692 | — | 692 | — | |||||||||||||||||||||||||||
Separate account assets | 40,004 | 43,502 | 16,406 | 21,711 | 1,887 | |||||||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||||||||
Deposit-type contracts | $ | 4,122 | 4,233 | — | — | 4,122 | ||||||||||||||||||||||||||
Other investment contracts | 96,854 | 88,919 | — | — | 96,854 | |||||||||||||||||||||||||||
Borrowed money | 1,999 | 2,010 | — | — | 1,999 | |||||||||||||||||||||||||||
Derivative liabilities | 760 | 747 | 5 | 741 | 14 | |||||||||||||||||||||||||||
Payable for securities lending | 1,892 | 1,892 | — | 1,892 | — | |||||||||||||||||||||||||||
Payable for securities | 207 | 207 | — | — | 207 | |||||||||||||||||||||||||||
Separate account liabilities | 40,004 | 43,502 | 16,406 | 21,711 | 1,887 | |||||||||||||||||||||||||||
(b) The Company does not have any assets or liabilities measured at NAV that are included in Level 2 in this table. In
addition, the Company has no assets or liabilities for which it is not practicable to measure at fair value.
|
2023 | 2022 | |||||||
Bonds | 45.0 | % | 47.0 | % | ||||
Stocks | 19.0 | % | 17.0 | % | ||||
Other Invested Assets | 36.0 | % | 36.0 | % |
2024 | $ | 8 | |||
2025 | — | ||||
2026 | — | ||||
2027 | — | ||||
2028 | — | ||||
Thereafter | — | ||||
Total | $ | 8 |
2023 | 2022 | ||||||||||
Amortization: | |||||||||||
Software amortization | 20 | 16 | |||||||||
Net EDP balance, by major classes of assets: | |||||||||||
Software | 67 | 63 | |||||||||
Net EDP balance | 67 | 63 | |||||||||
Nonadmitted | (67) | (63) | |||||||||
Net admitted EDP balance | $ | — | — |
December 31, 2023 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets
|
$ | 1,065 | 69 | 1,134 | |||||||||||||
Statutory valuation allowance adjustments
|
— | — | — | ||||||||||||||
Adjusted gross deferred tax assets
|
1,065 | 69 | 1,134 | ||||||||||||||
Deferred tax assets nonadmitted
|
(196) | — | (196) | ||||||||||||||
Subtotal net admitted deferred tax assets
|
869 | 69 | 938 | ||||||||||||||
Deferred tax liabilities
|
(371) | (3) | (374) | ||||||||||||||
Net admitted deferred tax assets (liabilities)
|
$ | 498 | 66 | 564 |
December 31, 2022 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets
|
$ | 898 | 58 | 956 | |||||||||||||
Statutory valuation allowance adjustments
|
— | — | — | ||||||||||||||
Adjusted gross deferred tax assets
|
898 | 58 | 956 | ||||||||||||||
Deferred tax assets nonadmitted
|
(108) | — | (108) | ||||||||||||||
Subtotal net admitted deferred tax assets
|
790 | 58 | 848 | ||||||||||||||
Deferred tax liabilities
|
(448) | (21) | (469) | ||||||||||||||
Net admitted deferred tax assets (liabilities)
|
$ | 342 | 37 | 379 |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Total gross deferred tax assets
|
$ | 166 | 11 | 177 | |||||||||||||
Statutory valuation allowance adjustments
|
— | — | — | ||||||||||||||
Adjusted gross deferred tax assets
|
166 | 11 | 177 | ||||||||||||||
Deferred tax assets nonadmitted
|
(88) | — | (88) | ||||||||||||||
Subtotal net admitted deferred tax assets
|
78 | 11 | 89 | ||||||||||||||
Deferred tax liabilities
|
77 | 17 | 94 | ||||||||||||||
Net admitted deferred tax assets (liabilities)
|
$ | 155 | 28 | 183 |
December 31, 2023 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | 69 | 69 | |||||||||||||
Adjusted gross DTAs expected to be realized after application of the
threshold limitations
|
— | — | — | ||||||||||||||
Lesser of 11.b.i or 11.b.ii:
|
— | — | — | ||||||||||||||
Adjusted gross DTAs expected to be realized following the balance sheet
date (11.b.i.)
|
498 | — | 498 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A | N/A | 971 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii
|
498 | — | 498 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c)
|
371 | — | 371 | ||||||||||||||
Deferred tax assets admitted
|
$ | 869 | 69 | 938 |
December 31, 2022 | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | 58 | 58 | |||||||||||||
Adjusted gross DTAs expected to be realized after application of the
threshold limitations
|
— | — | — | ||||||||||||||
Lesser of 11.b.i or 11.b.ii:
|
— | — | — | ||||||||||||||
Adjusted gross DTAs expected to be realized following the balance sheet
date (11.b.i.)
|
342 | — | 342 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A | N/A | 920 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii
|
342 | — | 342 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c)
|
448 | — | 448 | ||||||||||||||
Deferred tax assets admitted
|
$ | 790 | 58 | 848 |
Change | |||||||||||||||||
Ordinary | Capital | Total | |||||||||||||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a) | $ | — | 11 | 11 | |||||||||||||
Adjusted gross DTAs expected to be realized after application of the
threshold limitations
|
— | — | — | ||||||||||||||
Lesser of 11.b.i or 11.b.ii:
|
— | — | — | ||||||||||||||
Adjusted gross DTAs expected to be realized following the balance sheet
date (11.b.i.)
|
156 | — | 156 | ||||||||||||||
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A | N/A | 50 | ||||||||||||||
Lesser of 11.b.i or 11.b.ii
|
156 | — | 156 | ||||||||||||||
Adjusted gross DTAs offset by gross DTLs (11.c)
|
(77) | — | (77) | ||||||||||||||
Deferred tax assets admitted
|
$ | 79 | 11 | 90 |
December 31 | ||||||||||||||||||||||||||
2023 | 2022 | Change | ||||||||||||||||||||||||
Ratio percentage used to determine recovery period and threshold limitation amount | 645 | % | 650 | % | (5) | % | ||||||||||||||||||||
Amount of adjusted capital and surplus used to determine recovery period threshold limitation | $ | 6,470 | 6,136 | 334 |
December 31 | 2023-2022 Change | 2022-2021 Change | |||||||||||||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||||||||||||||
Current year federal tax expense (benefit) - ordinary income | $ | 574 | (2) | 1,091 | 576 | (1,093) | |||||||||||||||||||||||
Current year foreign tax expense (benefit) - ordinary income | — | — | — | — | — | ||||||||||||||||||||||||
Subtotal | 574 | (2) | 1,091 | 576 | (1,093) | ||||||||||||||||||||||||
Current year tax expense - net realized capital gains (losses) | (102) | (43) | 249 | (59) | (292) | ||||||||||||||||||||||||
Federal and foreign income taxes incurred | $ | 472 | (45) | 1,340 | 517 | (1,385) |
December 31 | ||||||||||||||||||||
Deferred tax assets | 2023 | 2022 | Change | |||||||||||||||||
Ordinary: | ||||||||||||||||||||
Unrealized losses | $ | 59 | 3 | 56 | ||||||||||||||||
Deferred acquisition costs | 246 | 213 | 33 | |||||||||||||||||
Expense accruals | 79 | 66 | 13 | |||||||||||||||||
Policyholder reserves | 640 | 518 | 122 | |||||||||||||||||
VM-21 reserves | 24 | 73 | (49) | |||||||||||||||||
Foreign tax credit carryforward | — | 5 | (5) | |||||||||||||||||
Nonadmitted assets | 17 | 20 | (3) | |||||||||||||||||
Subtotal | 1,065 | 898 | 167 | |||||||||||||||||
Statutory valuation allowance adjustment | — | — | — | |||||||||||||||||
Nonadmitted ordinary deferred tax assets | (196) | (108) | (88) | |||||||||||||||||
Admitted ordinary tax assets | 869 | 790 | 79 | |||||||||||||||||
Capital: | ||||||||||||||||||||
Impaired assets | 65 | 56 | 9 | |||||||||||||||||
Unrealized losses | 4 | 2 | 1 | |||||||||||||||||
Subtotal | 69 | 58 | 10 | |||||||||||||||||
Statutory valuation allowance adjustment | — | — | — | |||||||||||||||||
Nonadmitted capital deferred tax assets | — | — | — | |||||||||||||||||
Admitted capital deferred tax assets | 69 | 58 | 10 | |||||||||||||||||
Admitted deferred tax assets | $ | 938 | 848 | 89 |
December 31 | ||||||||||||||||||||
Deferred tax liabilities | 2023 | 2022 | Change | |||||||||||||||||
Ordinary: | ||||||||||||||||||||
Investments | $ | (64) | (61) | (3) | ||||||||||||||||
Fixed assets | (4) | (4) | — | |||||||||||||||||
Policyholder reserves | (182) | (275) | 93 | |||||||||||||||||
Software capitalization | (6) | (11) | 5 | |||||||||||||||||
Unrealized gains | (115) | (97) | (18) | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
Subtotal | (371) | (448) | 77 | |||||||||||||||||
Capital: | ||||||||||||||||||||
Unrealized gains | (3) | (21) | 18 | |||||||||||||||||
Subtotal | (3) | (21) | 18 | |||||||||||||||||
Deferred tax liabilities | $ | (374) | (469) | 95 | ||||||||||||||||
Net deferred tax assets (liabilities) | $ | 564 | 379 | 185 |
December 31 | |||||||||||||||||
2023 | 2022 | Change | |||||||||||||||
Net deferred tax assets (liabilities)
|
$ | 759 | 487 | 272 | |||||||||||||
Statutory valuation allowance adjustment
|
— | — | — | ||||||||||||||
Net deferred tax assets (liabilities) after statutory valuation
allowance
|
759 | 487 | 272 | ||||||||||||||
Tax effect of unrealized gains (losses)
|
162 | 208 | (46) | ||||||||||||||
Statutory valuation allowance adjustment allocated to unrealized gains
(losses)
|
— | — | — | ||||||||||||||
Tax impact due to correction of error | 9 | — | 9 | ||||||||||||||
Change in net deferred income tax | $ | 930 | $ | 695 | $ | 235 |
December 31, 2023 | December 31, 2022 | December 31, 2021 | |||||||||||||||
Federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Amortization of IMR | (0.3) | (0.3) | (1.9) | ||||||||||||||
Dividends received deduction | (0.9) | (0.4) | (1.3) | ||||||||||||||
Nondeductible expenses | 2.9 | 1.3 | 0.1 | ||||||||||||||
Affiliated LLC income | (0.2) | (0.2) | (0.2) | ||||||||||||||
COLI | (0.7) | 0.1 | (2.4) | ||||||||||||||
Tax hedges | 8.5 | (4.5) | (6.5) | ||||||||||||||
Tax hedge reclassification | (7.0) | (15.0) | 73.7 | ||||||||||||||
Tax credits | (2.8) | (2.0) | (9.6) | ||||||||||||||
Prior period adjustments | 0.1 | — | (1.2) | ||||||||||||||
Change in deferred taxes on impairments | (0.5) | (0.3) | 0.6 | ||||||||||||||
Change in deferred taxes on nonadmitted assets | 0.1 | (0.2) | (0.4) | ||||||||||||||
Change in deferred tax reclassified to Change due to correction of accounting error | (0.4) | — | — | ||||||||||||||
Reinsurance | (3.0) | (1.9) | 83.5 | ||||||||||||||
Correction of error surplus | 0.4 | — | 2.0 | ||||||||||||||
Tax contingencies | (1.7) | 0.4 | 10.6 | ||||||||||||||
Realized capital gains tax | (4.7) | (1.5) | 47.4 | ||||||||||||||
Other | 0.2 | — | (1.4) | ||||||||||||||
Effective tax rate | 11.0 | % | (3.5) | % | 214.0 | % | |||||||||||
Federal and foreign income taxes incurred | 26.6 | % | (0.1) | % | 207.4 | % | |||||||||||
Realized Capital Gains Tax | (4.7) | (1.5) | 47.4 | ||||||||||||||
Change in net deferred tax | (10.9) | (1.9) | (40.8) | ||||||||||||||
Effective tax rate | 11.0 | % | (3.5) | % | 214.0 | % |
Members of Consolidated Tax Group | |||||
Allianz Life Insurance Company of North America | Allianz Life Insurance Company of Missouri | ||||
Allianz Life Insurance Company of New York | Allianz Underwriters Insurance Company | ||||
AZOA Services Corporation | AGCS Marine Insurance Company | ||||
Allianz Global Risks US Insurance Company | Allianz Reinsurance Management Services, Inc. | ||||
Allianz Reinsurance of America, Inc. | Fireman’s Fund Insurance Company | ||||
Allianz Technology of America, Inc. | Fireman’s Fund Indemnity Corporation | ||||
Allianz Renewable Energy Partners of America LLC | National Surety Corporation | ||||
Allianz Renewable Energy Partners of America 2 LLC | Chicago Insurance Company | ||||
PFP Holdings, LLC. | Interstate Fire & Casualty Company | ||||
AZL PF Investments, Inc. | American Automobile Insurance Company | ||||
Dresdner Kleinwort Pfandbriefe Investments II, Inc. | The American Insurance Company | ||||
Allianz Fund Investments, Inc. | Allianz Risk Transfer, Inc. | ||||
Yorktown Financial Companies, Inc. | Allianz Risk Transfer (Bermuda), Ltd. | ||||
Questar Capital Corporation | Questar Agency, Inc. |
2023 | 2022 | 2021 | ||||||||||||||||||
Balance at January 1, net of reinsurance recoverables of $845, $734, and $665, respectively | $ | 437 | 385 | 337 | ||||||||||||||||
Incurred related to: | ||||||||||||||||||||
Current year | 242 | 201 | 189 | |||||||||||||||||
Prior years | (15) | (39) | (47) | |||||||||||||||||
Total incurred | 227 | 162 | 142 | |||||||||||||||||
Paid related to: | ||||||||||||||||||||
Current year | 12 | 11 | 10 | |||||||||||||||||
Prior years | 121 | 99 | 84 | |||||||||||||||||
Total paid | 133 | 110 | 94 | |||||||||||||||||
Balance at December 31, net of reinsurance recoverables of $1,000, $845, and $734, respectively | $ | 531 | 437 | 385 |
For the years ended December 31, | ||||||||||||||
Reduction in: | 2023 | 2022 | ||||||||||||
Aggregate reserves * | $ | 27,184 | 17,122 | |||||||||||
Deposit-type contracts | 423 | 257 | ||||||||||||
Policy and contract claims | 50 | 33 | ||||||||||||
*Aggregate reserves are reduced by funds withheld agreements that results in a reclassification of reserves to Funds held under reinsurance treaties on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus in the amount of $10,034 and $139 as of December 31, 2023 and 2022, respectively. |
Year ended | Direct amount | Ceded to other companies | Assumed from other companies | Net amount | ||||||||||||||||||||||
December 31, 2023 | ||||||||||||||||||||||||||
Life insurance in-force | $ | 89,951 | 52,123 | 42 | 37,870 | |||||||||||||||||||||
Premiums: | ||||||||||||||||||||||||||
Life | 1,649 | 102 | — | 1,547 | ||||||||||||||||||||||
Annuities | 16,985 | 1,208 | — | 15,777 | ||||||||||||||||||||||
Accident and health | 177 | 73 | 75 | 179 | ||||||||||||||||||||||
Total premiums | $ | 18,811 | 1,383 | 75 | 17,503 | |||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Life insurance in-force | $ | 80,796 | 48,002 | 41 | 32,835 | |||||||||||||||||||||
Premiums: | ||||||||||||||||||||||||||
Life | 1,537 | 94 | — | 1,443 | ||||||||||||||||||||||
Annuities | 13,438 | 762 | — | 12,676 | ||||||||||||||||||||||
Accident and health | 170 | 71 | 70 | 169 | ||||||||||||||||||||||
Total premiums | $ | 15,145 | 927 | 70 | 14,288 | |||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Life insurance in-force | $ | 65,088 | 41,500 | 50 | 23,638 | |||||||||||||||||||||
Premiums: | ||||||||||||||||||||||||||
Life | 1,453 | 94 | 1 | 1,360 | ||||||||||||||||||||||
Annuities | 13,226 | 623 | — | 12,603 | ||||||||||||||||||||||
Accident and health | 168 | 68 | 62 | 162 | ||||||||||||||||||||||
Total premiums | $ | 14,847 | 785 | 63 | 14,125 |
2023 | Percentage of total | 2022 | Percentage of total | |||||||||||||||||||||||
Subject to discretionary withdrawal: | ||||||||||||||||||||||||||
With market value adjustment | $ | 61,551 | 40 | % | $ | 54,155 | 37 | % | ||||||||||||||||||
At book value less current surrender charges of 5% or more | 39,841 | 26 | 34,062 | 23 | ||||||||||||||||||||||
At market value | 15,527 | 10 | 15,629 | 10 | ||||||||||||||||||||||
Total with adjustment or at market value | 116,919 | 76 | 103,846 | 70 | ||||||||||||||||||||||
At book value without adjustment (minimal or no charge or adjustment) | 30,105 | 19 | 34,870 | 24 | ||||||||||||||||||||||
Not subject to discretionary withdrawal | 7,718 | 5 | 8,187 | 6 | ||||||||||||||||||||||
Total gross | 154,742 | 100 | % | 146,903 | 100 | % | ||||||||||||||||||||
Reinsurance ceded | 23,033 | 12,936 | ||||||||||||||||||||||||
Total net | $ | 131,709 | $ | 133,967 | ||||||||||||||||||||||
Amount included in At book value less current charges of 5% or more that will move to At book value without adjustment in the year after the statement date: | $ | 3,825 | $ | 3,376 |
Reconciliation of total annuity actuarial reserves and deposit fund liabilities: | 2023 | 2022 | ||||||||||||
Life, Accident and Health Annual Statement: | ||||||||||||||
Annuities, net (excluding supplementary contracts with life contingencies) | $ | 80,492 | 89,017 | |||||||||||
Supplemental contracts with life contingencies, net | 1,978 | 2,036 | ||||||||||||
Deposit-type contracts | 3,842 | 4,233 | ||||||||||||
Subtotal | 86,312 | 95,286 | ||||||||||||
Separate Accounts Annual Statement: | ||||||||||||||
Annuities, net (excluding supplementary contracts with life contingencies) | 45,381 | 38,667 | ||||||||||||
Supplemental contracts with life contingencies, net | 16 | 14 | ||||||||||||
Subtotal | 45,397 | 38,681 | ||||||||||||
Total annuity actuarial reserves and deposit fund liabilities | $ | 131,709 | 133,967 |
2023 | |||||||||||
General Account | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Universal life | $ | 754 | 752 | 758 | |||||||
Universal life with secondary guarantees | 58 | 54 | 141 | ||||||||
Indexed life | 8,957 | 7,820 | 7,869 | ||||||||
Other permanent cash value life insurance | 86 | 86 | 86 | ||||||||
Variable universal life | 2 | 2 | 2 | ||||||||
Miscellaneous reserves | — | — | 302 | ||||||||
Not subject to discretionary withdrawal or no cash values: | |||||||||||
Term policies without cash value | XXX | XXX | 184 | ||||||||
Disability, active lives | XXX | XXX | 49 | ||||||||
Disability, disabled lives | XXX | XXX | 5 | ||||||||
Miscellaneous reserves | XXX | XXX | 39 | ||||||||
Total gross | 9,857 | 8,714 | 9,435 | ||||||||
Reinsurance ceded | 560 | 560 | 791 | ||||||||
Total net | $ | 9,297 | 8,154 | 8,644 | |||||||
2022 | |||||||||||
General Account | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Universal life | $ | 786 | 785 | 791 | |||||||
Universal life with secondary guarantees | 58 | 53 | 140 | ||||||||
Indexed life | 7,857 | 6,824 | 6,859 | ||||||||
Other permanent cash value life insurance | 97 | 97 | 97 | ||||||||
Variable universal life | 2 | 2 | 2 | ||||||||
Not subject to discretionary withdrawal or no cash values: | |||||||||||
Term policies without cash value | XXX | XXX | 198 | ||||||||
Disability, active lives | XXX | XXX | 49 | ||||||||
Disability, disabled lives | XXX | XXX | 5 | ||||||||
Miscellaneous reserves | XXX | XXX | 40 | ||||||||
Total gross | 8,800 | 7,761 | 8,181 | ||||||||
Reinsurance ceded | 587 | 587 | 848 | ||||||||
Total net | $ | 8,213 | 7,174 | 7,333 | |||||||
The Company does not have any life policies with guarantees in the separate account. | |||||||||||
2023 | |||||||||||
Separate Account Nonguaranteed | Account value | Cash value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Variable universal life | $ | 17 | 17 | 17 | |||||||
Total gross | 17 | 17 | 17 | ||||||||
Reinsurance ceded | — | — | — | ||||||||
Total net | $ | 17 | 17 | 17 | |||||||
2022 | |||||||||||
Separate Account Nonguaranteed | Account Value | Cash Value | Reserve | ||||||||
Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
Variable universal life | $ | 16 | 16 | 16 | |||||||
Total gross | 16 | 16 | 16 | ||||||||
Reinsurance ceded | — | — | — | ||||||||
Total net | $ | 16 | 16 | 16 |
Reconciliation of total life actuarial reserves: | 2023 | 2022 | ||||||
Life, Accident, and Health Annual Statement: | ||||||||
Life insurance, net | $ | 8,274 | $ | 7,263 | ||||
Disability, active lives, net | 46 | 47 | ||||||
Disability, disabled lives, net | 1 | 1 | ||||||
Miscellaneous reserves, net | 323 | 22 | ||||||
Subtotal | 8,644 | 7,333 | ||||||
Separate Accounts Annual Statement: | ||||||||
Life insurance, net | 17 | 16 | ||||||
Subtotal | 17 | 16 | ||||||
Total life actuarial reserves | $ | 8,661 | $ | 7,349 |
2023 | 2022 | ||||||||||
Premiums, considerations, or deposits | $ | 5,405 | 4,839 | ||||||||
Reserves: | |||||||||||
Reserves for accounts with assets at fair value | 15,695 | 15,788 | |||||||||
Reserves for accounts with assets at amortized cost | 29,719 | 22,909 | |||||||||
Total reserves | $ | 45,414 | 38,697 | ||||||||
By withdrawal characteristics: | |||||||||||
At book value without MV adjustment and with current surrender charge of 5% or more | $ | 25,533 | 19,533 | ||||||||
At fair value | 15,658 | 15,753 | |||||||||
At book value without MV adjustment and with current surrender charge of less than 5% | 4,192 | 3,382 | |||||||||
Subtotal | 45,383 | 38,668 | |||||||||
Not subject to discretionary withdrawal | 31 | 29 | |||||||||
Total | $ | 45,414 | 38,697 |
2023 | 2022 | |||||||||||||||||||
Product/transaction | Legally insulated | Not legally insulated | Legally insulated | Not legally insulated | ||||||||||||||||
Variable Annuities | $ | 15,462 | — | 15,624 | — | |||||||||||||||
Variable Life | 17 | — | 16 | — | ||||||||||||||||
Variable Annuities (Non-Unitized Insulated) | 453 | — | 411 | — | ||||||||||||||||
Variable Annuities (Non-Unitized Non-Insulated) | — | 36,826 | — | 27,420 | ||||||||||||||||
Variable Annuities (MN MVA) | — | 23 | — | 31 | ||||||||||||||||
Total | $ | 15,932 | 36,849 | 16,051 | 27,451 |
2023 | 2022 | 2021 | |||||||||||||||
Transfers as reported in the Summary of Operations of the Separate Accounts Annual Statement: | |||||||||||||||||
Transfers to separate accounts | $ | 5,405 | 4,839 | 5,927 | |||||||||||||
Transfers from separate accounts | (4,579) | (3,106) | (3,507) | ||||||||||||||
Net transfers to separate accounts | 826 | 1,733 | 2,420 | ||||||||||||||
Reconciling adjustments: | |||||||||||||||||
Other adjustments | 8 | (1) | 4 | ||||||||||||||
Transfers as reported in the Statutory Statements of Operations | $ | 834 | 1,732 | 2,424 |
2023 | 2022 | 2021 | ||||||||||||||||||
Allianz Investment Management, LLC | $ | 34 | 47 | 41 | ||||||||||||||||
AZL PF Investments, Inc. (AZLPF) (1)
|
67 | 30 | — | |||||||||||||||||
Allianz Individual Insurance Group, LLC (AIIG) | — | 5 | 4 | |||||||||||||||||
Total | $ | 101 | 82 | 45 | ||||||||||||||||
(1) Dividends received from AZLPF includes $38 of dividends that originated from Allianz Fund Investments, Inc., which paid dividends to its immediate parent, Dresdner Kleinwort Pfandbriefe Investments II, Inc. ("DKPII"). DKPII then paid dividends to AZLPF, which subsequently paid dividends to the Company. | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
AZNY | $ | 30 | 30 | — | ||||||||||||||||
Allianz Investment Management U.S. LLC (AIM US) | — | — | 8 | |||||||||||||||||
ALFS | 51 | 42 | 48 | |||||||||||||||||
Allianz Strategic Investments, LLC (ASI) | $ | 7 | 13 | 66 | ||||||||||||||||
Total | $ | 88 | 85 | 122 |
Entity | Reporting Entity's Share of Entity's Net Income (Loss) | Accumulated Share of Net Income (Losses) | Reporting Entity's Share of Equity, Including Negative Equity | Guaranteed Obligation / Commitment for Financial Support (Yes / No) | Reported Value | ||||||||||||
AIM U.S. LLC | $ | — | (11) | (11) | YES | $ | — | ||||||||||
Yorktown Holdings | — | — | — | YES | $ | — |
Authorized | Issued and outstanding | Par value, per share | Redemption and liquidation rights | |||||||||||||||||||||||
Common stock | 40,000,000 | 20,000,001 | $ | 1.00 | None | |||||||||||||||||||||
Preferred stock: | ||||||||||||||||||||||||||
Class A (consisting of Series A and B below) | 200,000,000 | 18,903,484 | $ | 1.00 | Designated by Board for each series issued | |||||||||||||||||||||
Class A, Series A | 8,909,195 | 8,909,195 | $ | 1.00 | $35.02 per share plus an amount to yield a compounded annual return of 6%, after actual dividends paid | |||||||||||||||||||||
Class A, Series B | 10,000,000 | 9,994,289 | $ | 1.00 | $35.02 per share plus an amount to yield a compounded annual return of 6%, after actual dividends paid | |||||||||||||||||||||
Class B | 400,000,000 | — | $ | 1.00 | Designated by Board for each series issued |
To send applications, and/or a check for an additional Purchase Payment,
or for general customer service, please mail to the appropriate address as follows:
|
REGULAR MAIL
|
Allianz Life Insurance Company of North America
P.O. Box 59060
Minneapolis MN 55459-0060
|
|
OVERNIGHT, CERTIFIED, OR REGISTERED MAIL
|
Allianz Life Insurance Company of North America
5701 Golden Hills Drive
Minneapolis MN 55416-1297
|
Checks sent to the wrong address for applications or
additional Purchase Payments are forwarded to the 5701
Golden Hills Drive address listed above, which may
delay processing.
|
Securities and Exchange Commission Registration Fee
|
$ 590,400
|
--------------
|
|
Estimated Printing and Filing Costs:
|
$ 30,000
|
--------------
|
|
Estimated Accounting Fees:
|
$ 75,000
|
---------------
|
|
Estimated Legal Fees:
|
$ N/A
|
---------------
|
|
Estimated Miscellaneous Fees:
|
$ N/A
|
---------------
|
The Bylaws of the Insurance Company provide:
|
||
ARTICLE XI. INDEMNIFICATION OF DIRECTORS, OFFICERS AND EMPLOYEES
|
||
SECTION 1. RIGHT TO INDEMNIFICATION:
|
||
(a)
|
Subject to the conditions of this Article and any conditions or limitations imposed by applicable law, the Corporation shall indemnify any employee, director or officer of the
Corporation (an "Indemnified Person") who was, is, or in the sole opinion of the Corporation, may reasonably become a party to or otherwise involved in any Proceeding by reason of the fact that such Indemnified Person is or was:
|
|
(i)
|
a director of the Corporation; or
|
|
(ii)
|
acting in the course and scope of his or her duties as an officer or employee of the Corporation; or
|
|
(iii)
|
rendering Professional Services at the request of and for the benefit of the Corporation; or
|
|
(iv)
|
serving at the request of the Corporation as an officer, director, fiduciary or member of another corporation, association, committee, partnership, joint venture, trust, employee
benefit plan or other enterprise (an "Outside Organization").
|
|
(b)
|
Notwithstanding the foregoing, no officer, director or employee shall be indemnified pursuant to these bylaws under the following circumstances:
|
|
(i)
|
in connection with a Proceeding initiated by such person, in his or her own personal capacity, unless such initiation was authorized by the Board of Directors;
|
|
(ii)
|
if a court of competent jurisdiction finally determines that any indemnification hereunder is unlawful;
|
|
(iii)
|
for acts or omissions involving intentional misconduct or knowing and culpable violation of law;
|
|
(iv)
|
for acts or omissions that the Indemnified Person believes to be contrary to the best interests of the Corporation or its shareholders or that involve the absence of good faith on the
part of the Indemnified Person;
|
|
(v)
|
for any transaction for which the Indemnified Person derived an improper personal benefit;
|
|
(vi)
|
for acts or omissions that show a reckless disregard for the Indemnified Person's duty to the Corporation or its shareholders in circumstances in which the Indemnified Person was
aware or should have been aware, in the ordinary course of performing the Indemnified Person's duties, of the risk of serious injury to the Corporation or its shareholders;
|
|
(vii)
|
for acts or omissions that constitute an unexcused pattern of inattention that amounts to an abdication of the Indemnified Person's duties to the Corporation or its shareholders;
|
|
(viii)
|
in circumstances where indemnification is prohibited by applicable law;
|
|
(ix)
|
in the case of service as an officer, director, fiduciary or member of an Outside Organization, where the Indemnified Person was aware or should have been aware that the conduct in
question was outside the scope of the assignment as contemplated by the Corporation.
|
SECTION 2. SCOPE OF INDEMNIFICATION:
|
|
(a)
|
Indemnification provided pursuant to Section 1(a)(iv) shall be secondary and subordinate to indemnification or insurance provided to an Indemnified Person by an Outside Organization
or other source, if any.
|
(b)
|
Indemnification shall apply to all reasonable expenses, liability and losses, actually incurred or suffered by an Indemnified Person in connection with a Proceeding, including without
limitation, attorneys' fees and any expenses of establishing a right to indemnification or advancement under this article, judgments, fines, ERISA excise taxes or penalties, amounts paid or to be paid in settlement and all interest,
assessments and other charges paid or payable in connection with or in respect of such expense, liability and loss.
|
(c)
|
Such indemnification shall continue as to any Indemnified Person who has ceased to be an employee, director or officer of the Corporation and shall inure to the benefit of his or her
heirs, estate, executors and administrators.
|
SECTION 3. DEFINITIONS:
|
|
(a)
|
"Corporation" for the purpose of Article XI shall mean Allianz Life Insurance Company of North America and all of its subsidiaries.
|
(b)
|
"Proceeding" shall mean any threatened, pending, or completed action, suit or proceeding whether civil, criminal, administrative, investigative or otherwise, including actions by or
in the right of the Corporation to procure a judgment in its favor.
|
(c)
|
"Professional Services" shall mean services rendered pursuant to (i) a professional actuarial designation, (ii) a license to engage in the practice of law issued by a State Bar
Institution or (iii) a Certified Public Accountant designation issued by the American Institute of Certified Public Accountants.
|
Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted for directors and officers or controlling persons of the Insurance Company pursuant
to the foregoing, or otherwise, the Insurance Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other than the payment by the Insurance Company of expenses incurred or paid by a director, officer or controlling person of the Insurance Company in the successful defense of
any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
|
1.(a)
|
Principal Underwriter Agreement by and between North American Life and Casualty Company on behalf
of NALAC Variable Account B and NALAC Financial Plans, Inc. dated September 14, 1988 incorporated by reference as exhibit EX-99.B3 from Pre-Effective Amendment No.1 to Registrant's 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. NALAC Variable Account B is the predecessor of Allianz Life Variable Account B.) |
(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 (General Agency 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 filed herewith.
|
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 Contract, L40538-01,
filed on December 19, 2022 as Exhibit 4(a) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(b)
|
Contract Schedule Page, S40875-01-NF, filed on December 19, 2022 as
Exhibit 4(b) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(c)
|
Index Options Contract Schedule Page, S40877-02, filed on December 19,
2022 as Exhibit 4(c) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(d)(i)
|
Application for Individual Variable Annuity Contract – IXA-APP-04-NF,
filed on December 19, 2022 as Exhibit 4(d)(i) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(d)(ii)
|
Annuity Purchase Acknowledgment, E-APA-VAR-03, filed on December 19,
2022 as Exhibit 4(d)(ii) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(e)(i)
|
Index Performance Strategy Rider II – S40903-01,
filed on December 19, 2022 as Exhibit 4(e)(i) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(ii)
|
Index Performance Strategy Rider III – S40904-01,
filed on December 19, 2022 as Exhibit 4(e)(ii) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(f)
|
Index Protection Strategy with Trigger Rider-S40879-02,
filed on December 19, 2022 as Exhibit 4(f) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(g)
|
Traditional Death Benefit Rider-S40880-01, filed on
December 19, 2022 as Exhibit 4(g) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(h)
|
Index Guard Strategy Rider-S40889-03, filed on
December 19, 2022 as Exhibit 4(h) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(i)(i)
|
Index Precision Strategy Rider, S40891-02, filed on
December 19, 2022 as Exhibit 4(i) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(ii)
|
Index Precision Strategy Rider, S40891-03,
incorporated by reference as Exhibit 4(i)(iIi) from Registrant's Initial Registration on Form S-1 (File No. 333-274933), electronically filed on October 11, 2023.
|
|
(j)
|
Index Dual Precision Strategy Rider, S40909,
incorporated by reference as Exhibit 4(i)(ii) from Registrant's Initial Registration on Form S-1 (File No. 333-274933), electronically filed on October 11, 2023.
|
|
(k)
|
Index Options Contract Schedule, S40877-03,
incorporated by reference as Exhibit 4(i)(iv) from Registrant's Initial Registration on Form S-1 (File No. 333-274933), electronically filed on October 11, 2023.
|
|
(l)
|
Performance Lock Rider S40908, filed on December 19,
2022 as Exhibit 4(j) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(m)
|
Waiver of Withdrawal Charge Rider-S40749-01, filed
on December 19, 2022 as Exhibit 4(k) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(n)
|
Maximum Anniversary Death Benefit Rider- S40897-01,
filed on December 19, 2022 as Exhibit 4(l) to Registrant's Initial Registration on Form S-1 (File No. 333-268951), is incorporated by reference.
|
|
(o)
|
Inherited IRA/Roth IRA Endorsement-S40713 incorporated by reference as
exhibit EX-99.B4.q. from Pre-Effective Amendment No. 1 to Registrant's Form N-4 (File Nos. 333-134267 and 811-05618), electronically filed on September 25, 2006.
|
|
(p)
|
Roth IRA Endorsement-S40342 incorporated by
reference as exhibit EX-99.B4.l. from Pre-Effective Amendment No. 1 to Registrant's Form N-4 (File Nos. 333-134267 and 811-05618), electronically filed on September 25, 2006.
|
|
(q)
|
IRA Endorsement-S40014 incorporated
by reference as exhibit EX-99.B4.g. from Pre-Effective Amendment No.1 to Registrant's Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999.
|
|
(r)
|
Unisex Endorsement-(S20146)
incorporated by reference as exhibit EX-99.B4.h. from Pre-Effective Amendment No.1 to Registrant's Form N-4 (File Nos. 333-82329 and 811-05618), electronically filed on December 30, 1999.
|
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 initial registration on Form S-1 (File No. 333-185864), is incorporated by reference. |
|
(c)* |
Powers of Attorney, filed herewith.
|
99.* |
Daily Adjustment Calculation Exhibit, IXA-010c, filed herewith. |
107*. |
Filing Fee Table, filed herewith.
|
(1)
|
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
|
|
(i)
|
To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
|
|
(ii)
|
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment
thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total
dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to
Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.
|
|
(iii)
|
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such
information in the registration statement.
|
|
(2)
|
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
|
|
(3)
|
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.
|
|
(4)
|
That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule
424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the
registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or
deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that
was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
|
|
(5)
|
That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution
of the securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the
purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such
purchaser:
|
|
(i)
|
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
|
|
(ii)
|
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the
undersigned registrant;
|
|
(iii)
|
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or
its securities provided by or on behalf of the undersigned registrant; and
|
|
(iv)
|
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
|
|
(6)
|
Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that, in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the
Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant
in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such
issue.
|
Signature
|
Title
|
|
Jasmine Jirele*
|
Director, President & Chief Executive Officer
|
|
Andreas G. Wimmer*
|
Director and Board Chair
|
|
Walter R. White*
|
Director
|
|
Udo Frank*
|
Director
|
|
William E. Gaumond*
|
Director, Senior Vice President, Chief Financial Officer and Treasurer (principal accounting officer)
|
|
Kevin E. Walker*
|
Director
|
|
Howard E. Woolley*
|
Director
|
|
Lauren Kathryn Day*
|
Director
|
Exhibit
|
Description of Exhibit
|
1(c)
|
The current specimen of the selling agreement (General Agency Agreement)
|
5
|
Opinion of Legality
|
23(a)
|
Consent of Independent Registered Public Accounting Firm
|
24(c)
|
Powers of Attorney
|
99
|
Daily Adjustment Calculation
|
107
|
Fee Table Exhibit
|
1.
|
General Agent is itself, or is affiliated with an entity which is registered as a broker/dealer with the
Securities and Exchange Commission (“SEC”) and which is a member of the Financial Industry Regulatory Authority (“FINRA”), and is duly licensed as a life insurance agency under the insurance laws of the various states in which it operates.
|
2.
|
Allianz has been authorized by Allianz Life Insurance Company of North America and Allianz Life
Insurance Company of New York (hereinafter collectively referred to as “Life Company”) to obtain and appoint general agents of Life Company to solicit for and sell those variable insurance contracts (“Contracts”) which are described on the
Commission Schedule which is attached hereto and incorporated herein.
|
3.
|
The parties desire General Agent to solicit for and sell the Contracts.
|
1.
|
Appointment. General Agent is hereby appointed as
a general agent of Life Company for the sale of the Contracts in those states where General Agent is duly licensed to do so and where Life Company is authorized to sell such products. General Agent shall have no exclusive territory for the
sale of the Contracts. Allianz shall inform General Agent of those jurisdictions in which the Contracts may be lawfully sold.
|
2.
|
Authority to Solicit and Sell. General Agent shall have the authority to solicit sales of the Contracts, obtain completed applications therefore and accept premiums paid thereon. Such solicitations and sales
shall be pursuant to and conducted in accordance with the rules, policies, and procedures of Life Company and Allianz. Applications for the Contracts shall be on forms duly authorized by Life Company and the solicitation of applications shall
be in accordance with all applicable federal and state securities laws and the insurance laws and regulations of the various states in which such Contracts are sold.
|
3.
|
Authority to Recommend Appointment of
Agents. General Agent is authorized to recommend to Allianz those persons associated with General Agent to be appointed as agents of Life Company and to be authorized to solicit for the sale of the Contracts in accordance with
this Agreement (hereinafter “Associated Persons”). Allianz and Life Company shall have absolute discretion to accept or reject such recommendation for the appointment of any person as an agent for the sale of the Contracts. Allianz and Life
Company shall also have the absolute right to terminate any such person as an agent of Life Company.
|
4.
|
Licensing, Training, and Compliance.
General Agent shall be responsible for assuring that it, its affiliates, and its officers, directors, employees, and sales personnel obtain and maintain all licenses, registrations, and appointments required by any law, regulation, or other
requirement of the SEC, the FINRA, or of any jurisdiction where the Contracts are to be sold.
|
5.
|
Advertisements and Sales Literature.
General Agent and its Associated Persons shall use only those sales, advertising and promotional materials which have been approved in writing by Allianz. Any sales materials created by General Agent or its Associated Persons that refer to
Life Company, Allianz, or Life Company products must be submitted to Allianz for prior review and approval. This applies to sales material in paper, electronic, or any other form.
|
6.
|
Compensation. General Agent
shall receive commissions on premiums on all contracts issued as a result of applications obtained by it and accepted by Life Company. Commissions payable hereunder are specified in the Commission Schedule which is attached hereto as Exhibit
B and incorporated herein by reference. Such Commission Schedule may be amended or modified at any time without notice. Any such amendment or modification shall apply only to applications dated after the date of such modification or
amendment.
|
7.
|
Relationship of the Parties.
General Agent and each of its agents and affiliates will act as an independent contractor under the terms of this Agreement and not as an agent, employee or a legal representative of Life Company or Allianz for any purpose.
|
8.
|
Web Site Access and Electronic Orders.
General Agent is responsible for any transactions entered by its Associated Persons electronically, until three (3) business days after Allianz receives written notice that a specific Associated Person should not have transactional authority.
Unless prohibited by law, General Agent is responsible for all communications and transactions transmitted electronically by means of the user name and password for General Agent or any Associated Person for individual on-line access to one
of the web sites operated by Allianz or Life Company unless the communication was made without the consent of General Agent or any Associated Persons and resulted solely from Life Company’s failure to keep the applicable user name and
password confidential.
|
9.
|
Performance in Accordance with Law.
Each party agrees to perform its obligation hereunder in accordance with all applicable laws, rules, and regulations now or hereafter in effect.
|
10.
|
Compliance Certification and Oversight. Allianz reserves the right to request a written certification stating that General Agent is in compliance with all applicable laws and regulations. In addition, Allianz reserves
the right to conduct ongoing oversight on General Agent and its activities related to this Agreement. This ongoing oversight may include requesting copies or summaries of General Agent’s policies and procedures and/or requiring completion of
a due diligence questionnaire. Oversight activities may be conducted via email, phone, electronic questionnaires, at General Agent’s physical location(s), or as otherwise deemed appropriate by Allianz. If an on-site review is requested,
General Agent shall make its offices, policies, procedures, information systems, personnel, etc. available to Allianz during regular business hours.
|
11.
|
Privacy, Information Security and Confidentiality.
|
a.
|
Privacy and Information Security Laws.
Each party to this Agreement agrees to comply with the requirements of Title V of the Gramm-Leach-Bliley Act, 15 U.S.C. §§ 6801 et seq., as may be amended from time to time, and any regulations adopted thereto, including Regulation S-P of
the Securities and Exchange Commission as applicable, as well as with any other applicable federal or state privacy laws and regulations, including but not limited to the Massachusetts Standards for the Protection of Personal Information,
201 CMR 17.00, et seq. and the California Consumer Privacy Act of 2018 (Cal. Civ. Code §§ 1798.100 et seq.) and the regulations promulgated thereunder, as well as any similar federal or state consumer privacy laws or regulations issued after
the effective date of this Agreement, if applicable (collectively, the “Privacy Laws”). The parties further agree to comply with applicable state and federal cybersecurity laws and regulations, including but not limited to 23 NYCRR Part 500
as issued by the New York Department of Financial Services (“NY Cybersecurity Regulation”) and the National Association of Insurance Commissioners (NAIC) Insurance Data Security Model Law as adopted by the individual states (collectively, the
“Cybersecurity Laws”).
|
b.
|
Definition of Personal Information. The term “Personal Information” as used herein
shall mean financial and health information furnished by (i) a product owner, (ii) an applicant for a product that was not issued, or (iii) a beneficiary, insured or annuitant who is not the product owner for use in connection with the
application for, or administration of Contracts of Life Company and shall include “Nonpublic Personal Information,” as the term is defined under the Privacy Laws and “Nonpublic Information,” as the term is defined under the Cybersecurity
Laws.
|
c.
|
Written information security program. Each party represents and warrants that it maintains a written
information security program that contains administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of Personal Information. The written information security
program is based on each party’s risk assessment and includes the use of multifactor authentication or risk-based authentication to limit access to relevant information systems and Personal Information as well as the use of encryption to
protect Personal Information in transit and at rest. Each party represents that it will hold Allianz Personal Information at least as securely as its own information.
|
d.
|
Confidentiality. A party shall not use Personal Information for any purpose other
than as required for the performance of that party’s obligations under the Agreement. No party will disclose any Personal Information received in connection with this Agreement to any other person, except: (i) to the extent required to carry
out the obligations set forth in this Agreement; (ii) as otherwise required or permitted by law or regulation; or (iii) as requested by a regulatory body or governmental agency or body having jurisdiction over the disclosing party. In the
event a party must disclose Personal Information to its third party service provider to carry out its obligations set forth in this agreement, such disclosure will only be done if the third party service provider has agreed in writing to be
bound by confidentiality requirements similar to those found in this Agreement. Under no circumstances may General Agent sell Personal Information to third parties without the express written authorization of Life Company.
|
e.
|
Data Security Breach. Each party agrees that, should there be any unauthorized access to Personal
Information it will notify the other parties of such unauthorized access. Notification is to occur promptly after determination that a security incident may have occurred and will contain reasonable details relating to the incident. Each
party will cooperate on an as-needed basis with
|
f.
|
Return of Personal Information. Upon termination of this Agreement, and subject to General Agent’s books
and records, legal or regulatory retention requirements, General Agent will destroy all Personal Information obtained pursuant to this selling agreement in its (including any of its Associated Persons, employees or agents) possession, custody
or control, or, upon request of Allianz and/or Life Company, return such Personal Information to Allianz and/or Life Company. To the extent return or destruction is not feasible, General Agent will extend the protections of this Section 11 to
such Personal Information for as long as the information
|
g.
|
Survival. The obligations outlined in this section survive termination of the Agreement.
|
12.
|
Anti-Money Laundering and Sanctions.
|
a.
|
Anti-Money Laundering. Each party represents that it has established an Anti-Money Laundering (AML)
Program that complies with all material aspects of the Bank Secrecy Act, as modified by the USA Patriot Act of 2001 and other applicable anti-money laundering laws and regulations. Each party agrees to take action to comply with any new or
additional anti-money laundering regulations.
|
b.
|
Sanctions. The parties represent and warrant that they have policies, procedures and
internal controls in place which are reasonably designed so that no party or any party’s subsidiaries, officers, directors, Associated Persons, or employees is an individual or
|
13.
|
Business Continuity Plan. The parties agree that each of them has in place a Business Continuity Plan which is (i) commercially reasonable; (ii) reasonably designed to comply with all applicable laws,
rules and regulations; and (iii) tested and continuously reviewed by the respective party’s management.
|
14.
|
Notification of Claims, Demands, or
Actions. Each party hereto shall promptly notify the other in writing of any complaint,
|
15.
|
Termination. This Agreement may be terminated without cause, for any reason, by either party and such termination will become effective thirty (30) days after the mailing or emailing of a
notice of termination to the other party as provided in Section 26, Notice. This Agreement may be terminated by either party for cause upon a material breach of the terms of this Agreement and such termination will become effective upon the
evidence of receipt of a notice of termination sent to the other parties as provided in Section 26, Notice. Notwithstanding the generality of the foregoing, Allianz may immediately terminate this Agreement for cause without prior notice if
General Agent or any of its Associated Persons, as determined by Allianz in its reasonable judgment,: (i) withhold, misappropriate or fail to pay or return to Allianz or Life Company any monies or debts due Allianz or Life Company; (ii)
engage in any conduct (including malfeasance, misfeasance or nonfeasance) that in any manner subjects or may subject Allianz or Life Company to liability; (iii) commit an act of embezzlement; (iv) fail to comply with any applicable laws,
rules, or regulations of any federal, state or other governmental agency or body, or any SRO; or (v) commit any fraud or misrepresent the provisions, benefits or premiums of the Contracts. Failure of a party to terminate this
Agreement upon knowledge of a cause shall not constitute a waiver of the right to terminate at a later time for such cause. This Agreement shall automatically and immediately terminate in the event of General Agent’s bankruptcy, insolvency or
involuntary assignment of this Agreement for the benefit of creditors, the dissolution, sale, merger or liquidation of General Agent, or if General Agent shall cease to be a member of FINRA, or to possess the requisite licenses and
appointments. General Agent agrees to immediately notify the other parties of such occurrence. Termination shall not affect General Agent’s right to any compensation earned on premiums received and accepted by Life Company prior to the
effective date of such termination, except in the event of termination for cause, in which case General Agent’s right to compensation shall cease immediately.
|
16.
|
Indemnification. Each party
shall indemnify and hold harmless the other parties to this Agreement , their officers, directors, employees and controlling persons from and against any damages, losses, liabilities, judgments, settlements, costs and expenses of any nature
whatsoever (including reasonable attorney’s fees and court costs) or cause of action, asserted or brought by anyone, resulting or arising out of or based upon an allegation or finding of: (1) any act or omission of a party, their employees,
Associated
|
17.
|
Entire Agreement. This
Agreement is the complete and exclusive statement of the agreement between the parties as to the subject matter hereof and supersedes all proposals or agreements, oral or written, related to the subject matter of this Agreement.
|
18.
|
Modification of Agreement.
Subject to the right of Life Company and Allianz to establish new or modified procedures and commission schedules as set out in Section 4, Licensing, Training and Compliance, and Section 6, Compensation, of this Agreement, this Agreement can
only be modified by a written agreement duly signed by the persons authorized to sign agreements on behalf of the parties. Variance from the terms or conditions of this Agreement or any order or other written notifications will be of no
effect.
|
19.
|
Separability of Provisions. If
any provision or provisions of this Agreement shall be held to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or be impaired thereby.
|
20.
|
Assignment. This Agreement and
the rights, duties, and obligations of the parties hereto shall not be assignable by General Agency without the prior written consent of the Life Company and Allianz, and any purported assignment shall be void.
|
21.
|
Waiver. No waiver by either
party of any default by the other in the performance of any promise, term, or condition of this Agreement shall be construed to be a waiver by such party of any other or subsequent default in performance of the same or any other covenant,
promise, term, or condition hereof. No prior transactions or dealings between the parties shall be deemed to establish any custom or usage waiving or modifying any provision hereof.
|
22.
|
Binding Agreement. This
Agreement shall be binding upon and inure to the benefit of the parties hereto, their successors, and permitted assigns.
|
23.
|
Arbitration. Any controversy
relating to this Agreement that is not subject to arbitration before the FINRA shall be determined by arbitration in the City of Minneapolis, Minnesota, in accordance with the Commercial Arbitration Rules of the American Arbitration
Association. All parties agree to be bound by the results of this arbitration and judgment may be entered and enforced in any court of competent jurisdiction.
|
24.
|
Governing Law. This Agreement
shall be governed by and interpreted in accordance with the laws of the State of Minnesota and each of the parties hereby consents to personal jurisdiction of the state and federal courts located in the state of Minnesota.
|
25.
|
Captions. Captions contained
in this Agreement are for reference purposes only and do not constitute part of this Agreement.
|
26.
|
Notice. All notices which are
required to be given or submitted pursuant to this Agreement shall be in writing and shall be deemed given when sent, whether by email or deposited in the U.S. Mail to the following:
|
To Allianz:
|
To General Agent:
|
Allianz Life Financial Services
Attn: Advisory & Strategic Accounts 5701 Golden Hills Drive
Minneapolis, MN 55416
|
1. |
Allianz Life Insurance Company of North America is a stock life insurance company organized under the laws of the state of Minnesota and is authorized to offer fixed and variable
annuities and individual life insurance.
|
2. |
Upon the acceptance of purchase payments made by a Contract Owner pursuant to a Contract issued in accordance with the Prospectus contained in the Registration Statement and upon
compliance with applicable law, such a Contract Owner will have a legally-issued, fully-paid, non-assessable contractual interest under such Contract, and all contractual interests of the Contract Owner are binding obligations of the
Registrant.
|
Signature
|
Title
|
Date
|
/s/ Jasmine M. Jirele
|
Director, President and Chief Executive Officer
|
March 11, 2024
|
Jasmine M. Jirele
|
||
/s/ Walter R. White
|
Director
|
March 11, 2024
|
Walter R. White
|
||
/s/ William E. Gaumond
|
Director, Senior Vice President,
Chief Financial Officer and Treasurer
|
March 11, 2024
|
William E. Gaumond
|
||
/s/ Andreas G. Wimmer
|
Board Chair
|
March 12, 2024
|
Andreas G. Wimmer
|
||
/s/ Udo Frank
|
Director
|
March 11, 2024
|
Udo Frank
|
||
/s/ Kevin E. Walker
|
Director
|
March 11, 2024
|
Kevin E. Walker
|
||
/s/ Howard E. Wooley
|
Director
|
March 12, 2024
|
Howard E. Woolley
|
||
|
Director
|
March 11, 2024
|
Lauren Kathryn Day
|
Allianz Life Variable Account A
|
33 Act No.
|
ValueLife
|
33-11158
|
Valuemark Life
|
33-15464
|
Life Fund VUL
|
333-60206
|
Allianz Life Variable Account B
|
|
Valuemark II
|
33-23035
|
Valuemark III
|
33-72046
|
VIP
|
33-76190
|
Valuemark IV
|
333-06709
|
Charter
|
333-63719
|
Alterity
|
333-82329
|
Rewards
|
333-95729
|
Dimensions
|
333-47886
|
High Five
|
333-90260
|
Charter II
|
333-101812
|
High Five Bonus
|
333-111049
|
High Five L
|
333-120181
|
Custom Income
|
333-126217
|
Elite
|
333-134267
|
Vision (legacy vers)
|
333-139701
|
Connections – (RJ-legacy vers)
|
333-145866
|
Retirement Pro
|
333-166408
|
Connections – (WF-POS vers)
|
333-169265
|
Vision (POS vers)
|
333-171427
|
Retirement Advantage
|
333-180720
|
Vision (ALIP vers)
|
333-182987
|
Connections (ALIP vers)
|
333-182989
|
Index Advantage N-4
|
333-185866
|
Index Advantage ADV N-4
|
333-213127
|
Index Advantage NF N-4
|
333-215105
|
Index Advantage Income N-4
|
333-222815
|
Index Advantage Income ADV N-4
|
333-255394
|
Index Advantage+ N-4
|
333-268962
|
Index Advantage+ NF N-4
|
333-268963
|
Index Advantage+ Income N-4
|
333-268826
|
Allianz Life Insurance Co of North America
|
|
Index Advantage S-1
|
333-185864
|
Index Advantage S-1 Vers. 2
|
333-195462
|
Index Advantage S-1 Vers. 3
|
333-210666
|
Index Advantage S-1 Vers. 4
|
333-217303
|
Index Advantage S-1 Vers. 5
|
333-224310
|
Index Advantage S-1 Vers. 6
|
333-230898
|
Index Advantage S-1 Vers. 7
|
333-237620
|
Index Advantage S-1 Vers 8
|
333-255306
|
Index Advantage S-1 Vers 9
|
333-264342
|
Index Advantage ADV S-1
|
333-213125
|
Index Advantage ADV S-1 Vers. 2
|
333-230899
|
Index Advantage ADV S-1 Vers. 3
|
333-264343
|
Index Advantage NF S-1
|
333-215103
|
Index Advantage NF S-1 Vers 2
|
333-237621
|
Index Advantage NF S-1 Vers 3
|
333-255307
|
Index Advantage NF S-1 Vers 4
|
333-264344
|
Index Advantage Income S-1
|
333-222817
|
Index Advantage Income S-1 Vers. 2
|
333-230901
|
Index Advantage Income S-1 Vers. 3
|
333-237628
|
Index Advantage Income S-1 Vers. 4
|
333-255317
|
Index Advantage Income S-1 Vers. 5
|
333-264345
|
Index Advantage Income ADV S-1
|
333-255386
|
Index Advantage Income ADV S-1 Vers2
|
333-264349
|
Index Advantage+ S-1
|
333-268864
|
Index Advantage+ NF S-1
|
333-268951
|
Index Advantage+ NF S-1 Vers 2
|
333-274933
|
Index Advantage+ NF S-1 Vers 3
|
TBD
|
Index Advantage+ Income S-1
|
333-268820
|
Index Advantage+ Income S-1 Vers 2
|
TBD
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value)
|
(b) |
proxy interest = beginning Proxy Value x (1 - time remaining during the Term)
|
• |
For an AMBC, AMC or AMP the strike price is equal to 1.
|
• |
For an OMC:
|
-
|
For Index Options without a Participation Rate, the strike price is equal to 1 plus the Cap.
|
-
|
For Index Options with a Participation Rate, the strike price is equal to 1 plus the Cap divided by the Participation Rate.
|
• |
For an OMP or IMBC the strike price is equal to 1 either minus the Buffer or plus the Floor, depending on the Index Option.
|
•
|
For an AMC or OMC the notional amount is equal to the Participation Rate
|
•
|
For an OMP, AMBC, AMP, or IMBC the notional amount is equal to 1
|
Strike price
|
AMC = 1.00
|
OMC = 1.12
|
OMP = 0.90
|
Index Value
|
1,000
|
||
Term TD return
|
NA
|
||
Time remaining
|
1.00
|
||
Value of derivatives
|
AMC = 5.10%
|
OMC = 0.66%
|
OMP = 3.37%
|
Strike price
|
AMC = 1.00
|
OMC = 1.12
|
OMP = 0.90
|
Index Value
|
1,010
|
||
Term TD return
|
1.00%
|
||
Time remaining
|
0.92
|
||
Value of derivatives
|
AMC = 5.41%
|
OMC = 0.72%
|
OMP = 2.83%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (1.86% - 1.06%) = 0.80%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.06% x (1 - 0.92) =
0.09% |
Strike price
|
AMC = 1.00
|
OMC = 1.12
|
OMP = 0.90
|
Index Value
|
1,010
|
||
Term TD return
|
1.00%
|
||
Time remaining
|
0.92
|
||
Value of derivatives
|
AMC = 6.37%
|
OMC = 2.23%
|
OMP = 3.50%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (0.63% - 1.06%) = -0.43%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.06% x (1 - 0.92) = 0.09%
|
Strike price
|
AMC = 1.00
|
OMC = 1.12
|
OMP = 0.90
|
Index Value
|
950
|
||
Term TD return
|
-5.00%
|
||
Time remaining
|
0.75
|
||
Value of derivatives
|
AMC = 2.50%
|
OMC = 0.12%
|
OMP = 3.99%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (-1.61% - 1.06%) = -2.67%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.06% x (1 - 0.75) = 0.27%
|
Strike price
|
AMC = 1.00
|
OMC = 1.12
|
OMP = 0.90
|
Index Value
|
1100
|
||
Term TD return
|
10.00%
|
||
Time remaining
|
0.50
|
||
Value of derivatives
|
AMC = 10.33%
|
OMC = 2.16%
|
OMP = 0.36%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (7.82% - 1.06%) = 6.75%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.06% x (1 - 0.50) = 0.53%
|
Strike price
|
AMC = 1.00
|
OMC = 1.12
|
OMP = 0.90
|
Index Value
|
900
|
||
Term TD return
|
-10.00%
|
||
Time Remaining
|
0.50
|
||
Value of derivatives
|
AMC = 0.72%
|
OMC = 0.00%
|
OMP = 4.93%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (-4.21% - 1.06%) = -5.27%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.06% x (1 - 0.50) = 0.53%
|
Strike price
|
AMC = 1.00
|
OMC = 1.12
|
OMP = 0.90
|
Index Value
|
1095
|
||
Term TD return
|
9.50%
|
||
Time remaining
|
0.08
|
||
Value of derivatives
|
AMC = 9.37%
|
OMC = 0.46%
|
OMP = 0.00%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (8.92% - 1.06%) = 7.86%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.06% x (1 - 0.08) = 0.97%
|
Month
|
Index Values
|
AMC
|
OMC
|
OMP
|
Proxy Value
|
Daily Adjustment
|
Index Option Value
|
Term Start Date
|
1,000
|
5.10%
|
0.66%
|
3.37%
|
1.06%
|
$0.00
|
$10,000.00
|
1
|
1,010
|
5.41%
|
0.72%
|
2.83%
|
1.86%
|
$89.16
|
$10,089.16
|
2
|
975
|
3.62%
|
0.29%
|
3.50%
|
-0.16%
|
-$104.73
|
$9,895.27
|
3
|
950
|
2.50%
|
0.12%
|
3.99%
|
-1.61%
|
-$240.54
|
$9,759.46
|
4
|
925
|
1.59%
|
0.04%
|
4.60%
|
-3.05%
|
-$376.16
|
$9,623.84
|
5
|
850
|
0.30%
|
0.00%
|
8.22%
|
-7.92%
|
-$853.97
|
$9,146.03
|
6
|
900
|
0.72%
|
0.00%
|
4.93%
|
-4.21%
|
-$473.86
|
$9,526.14
|
7
|
980
|
2.61%
|
0.07%
|
1.62%
|
0.92%
|
$47.62
|
$10,047.62
|
8
|
1,015
|
3.95%
|
0.14%
|
0.67%
|
3.13%
|
$277.54
|
$10,277.54
|
9
|
1,100
|
9.95%
|
1.39%
|
0.05%
|
8.51%
|
$824.60
|
$10,824.60
|
10
|
1,125
|
12.25%
|
2.10%
|
0.00%
|
10.15%
|
$996.95
|
$10,996.95
|
11
|
1,095
|
9.37%
|
0.46%
|
0.00%
|
8.92%
|
$882.86
|
$10,882.86
|
Term End Date
|
1,080
|
$10,800.00
|
Strike price
|
AMC = 1.00
|
OMC = 1.50
|
OMP = 0.80
|
Notional amount
|
AMC = 1.00
|
OMC = 1.00
|
OMP = 1.00
|
Index Value
|
1,000
|
||
Term TD return
|
NA
|
||
Time remaining
|
1.00
|
||
Value of derivatives
|
AMC = 10.82%
|
OMC = 0.76%
|
OMP = 6.97%
|
Strike price
|
AMC = 1.00
|
OMC = 1.50
|
OMP = 0.80
|
Notional amount
|
AMC = 1.00
|
OMC = 1.00
|
OMP = 1.00
|
Index Value
|
1,100
|
||
Term TD return
|
10.00%
|
||
Time remaining
|
0.83
|
||
Value of derivatives
|
AMC = 15.61%
|
OMC = 1.28%
|
OMP = 3.95%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (10.38% - 3.09%) = 7.29%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 3.09% x (1 - 0.83) = 0.51%
|
Strike price
|
AMC = 1.00
|
OMC = 1.50
|
OMP = 0.80
|
Notional amount
|
AMC = 1.00
|
OMC = 1.00
|
OMP = 1.00
|
Index Value
|
900
|
||
Term TD return
|
-10.00%
|
||
Time remaining
|
0.83
|
||
Value of derivatives
|
AMC = 5.81%
|
OMC = 0.16%
|
OMP = 8.53%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (-2.88% - 3.09%) = -5.97%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 3.09% x (1 - 0.83) = 0.51%
|
Strike price
|
AMC = 1.00
|
OMC = NA
|
OMP = 0.80
|
Notional amount
|
AMC = 1.00
|
OMC = NA
|
OMP = 1.00
|
Index Value
|
1,000
|
||
Term TD return
|
NA
|
||
Time remaining
|
1.00
|
||
Value of derivatives
|
AMC = 10.82%
|
OMC = 0.00%
|
OMP = 6.97%
|
Strike price
|
AMC = 1.00
|
OMC = NA
|
OMP = 0.80
|
Notional amount
|
AMC = 1.00
|
OMC = NA
|
OMP = 1.00
|
Index Value
|
1,100
|
||
Term TD return
|
10.00%
|
||
Time remaining
|
0.83
|
||
Value of derivatives
|
AMC = 15.61%
|
OMC = 0.00%
|
OMP = 3.95%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (11.66% - 3.85%) = 7.81%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 3.85% x (1 - 0.83) = 0.64%
|
Strike price
|
AMC = 1.00
|
OMC = NA
|
OMP = 0.80
|
Notional amount
|
AMC = 1.00
|
OMC = NA
|
OMP = 1.00
|
Index Value
|
900
|
||
Term TD return
|
-10.00%
|
||
Time remaining
|
0.83
|
||
Value of derivatives
|
AMC = 5.81%
|
OMC = 0.00%
|
OMP = 8.53%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (-2.72% - 3.85%) = -6.57%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 3.85% x (1 - 0.83) = 0.64%
|
Strike price
|
AMC = 1.00
|
OMC = NA
|
OMP = 0.90
|
Notional amount
|
AMC = 1.10
|
OMC = NA
|
OMP = 1.00
|
Index Value
|
1,000
|
||
Term TD return
|
NA
|
||
Time remaining
|
1.00
|
||
Value of derivatives
|
AMC = 18.91%
|
OMC = 0.00%
|
OMP = 15.47%
|
Strike price
|
AMC = 1.00
|
OMC = NA
|
OMP = 0.90
|
Notional amount
|
AMC = 1.10
|
OMC = NA
|
OMP = 1.00
|
Index Value
|
1,100
|
||
Term TD return
|
10.00%
|
||
Time remaining
|
0.92
|
||
Value of derivatives
|
AMC = 24.31%
|
OMC = 0.00%
|
OMP = 11.94%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (12.37% - 3.44%) = 8.94%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 3.44% x (1 - 0.92) = 0.29%
|
Strike price
|
AMC = 1.00
|
OMC = NA
|
OMP = 0.90
|
Notional amount
|
AMC = 1.10
|
OMC = NA
|
OMP = 1.00
|
Index Value
|
900
|
||
Term TD return
|
-10.00%
|
||
Time remaining
|
0.92
|
||
Value of derivatives
|
AMC = 13.18%
|
OMC = 0.00%
|
OMP = 18.16%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (-4.98% - 3.44%) = -8.42%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 3.44% x (1 - 0.92) = 0.29%
|
Strike price
|
AMC = 1.00
|
OMC = 1.10
|
AMP = 1.00
|
OMP = 0.90
|
Index Value
|
1,000
|
|||
Term TD return
|
NA
|
|||
Time remaining
|
1.00
|
|||
Value of derivatives
|
AMC = 5.10%
|
OMC = 1.17%
|
AMP = 6.77%
|
OMP = 3.37%
|
Strike price
|
AMC = 1.00
|
OMC = 1.10
|
AMP = 1.00
|
OMP = 0.90
|
Index Value
|
1,100
|
|||
Term TD return
|
10.00%
|
|||
Time remaining
|
0.50
|
|||
Value of derivatives
|
AMC = 10.33%
|
OMC = 3.25%
|
AMP = 1.28%
|
OMP = 0.36%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (6.15% - 0.53%) = 5.62%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 0.53% x (1 - 0.5) = 0.27%
|
Strike price
|
AMC = 1.00
|
OMC = 1.10
|
AMP = 1.00
|
OMP = 0.90
|
Index Value
|
900
|
|||
Term TD return
|
-10.00%
|
|||
Time remaining
|
0.50
|
|||
Value of derivatives
|
AMC = 0.72%
|
OMC = 0.02%
|
AMP = 11.46%
|
OMP = 4.93%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (-5.83% - 0.53%) = -6.36%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 0.53% x (1 - 0.5) = 0.27%
|
Strike price
|
AMBC = 1.00
|
OMP = 0.90
|
Index Value
|
1,000
|
|
Term TD return
|
NA
|
|
Time remaining
|
1.00
|
|
Value of derivatives
|
AMBC = 42.32%
|
OMP = 3.37%
|
Strike price
|
AMBC = 1.00
|
OMP = 0.90
|
Index Value
|
1,100
|
|
Term TD return
|
10.00%
|
|
Time remaining
|
0.50
|
|
Value of derivatives
|
AMBC = 77.60%
|
OMP = 0.36%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (7.40% - 0.86%) = 6.54%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 0.86% x (1 - 0.50) = 0.43%
|
Strike price
|
AMBC = 1.00
|
OMP = 0.90
|
Index Value
|
900
|
|
Term TD return
|
-10.00%
|
|
Time remaining
|
0.50
|
|
Value of derivatives
|
AMBC = 12.96%
|
OMP = 4.93%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (-3.63% - 0.86%) = -4.49%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 0.86% x (1 - 0.50) = 0.43%
|
Strike price
|
IMBC = 0.90
|
OMP = 0.90
|
Index Value
|
1,000
|
|
Term TD return
|
NA
|
|
Time remaining
|
1.00
|
|
Value of derivatives
|
IMBC = 65.25%
|
OMP = 3.37%
|
Strike price
|
IMBC = 0.90
|
OMP = 0.90
|
Index Value
|
1,100
|
|
Term TD return
|
10.00%
|
|
Time remaining
|
0.50
|
|
Value of derivatives
|
IMBC = 92.36%
|
OMP = 0.36%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (6.11% - 1.19%) = 4.91%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.19% x (1 - 0.50) = 0.60%
|
Strike price
|
IMBC = 0.90
|
OMP = 0.90
|
Index Value
|
900
|
|
Term TD return
|
-10.00%
|
|
Time remaining
|
0.50
|
|
Value of derivatives
|
IMBC = 44.70%
|
OMP = 4.93%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (-1.80% - 1.19%) = -2.99%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.19% x (1 - 0.50) = 0.60%
|
Strike price
|
AMC = 1.00
|
OMC = 1.04
|
Index Value
|
1,000
|
|
Term TD return
|
NA
|
|
Time remaining
|
1.00
|
|
Value of derivatives
|
AMC = 5.10%
|
OMC = 3.23%
|
Strike price
|
AMC = 1.00
|
OMC = 1.04
|
Index Value
|
1,100
|
|
Term TD return
|
10.00%
|
|
Time remaining
|
0.50
|
|
Value of derivatives
|
AMC = 10.33%
|
OMC = 7.20%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (3.13% - 1.86%) = 1.27%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.86% x (1 - 0.5) = 0.93%
|
Strike price
|
AMC = 1.00
|
OMC = 1.04
|
Index Value
|
900
|
|
Term TD return
|
-10.00%
|
|
Time remaining
|
0.50
|
|
Value of derivatives
|
AMC = 0.72%
|
OMC = 0.25%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (0.47% - 1.86%) = -1.39%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.86% x (1 - 0.5) = 0.93%
|
Strike price
|
AMBC = 1.00
|
|
Index Value
|
1,000
|
|
Term TD return
|
NA
|
|
Time remaining
|
1.00
|
|
Value of derivatives
|
AMBC = 42.32%
|
Strike price
|
AMBC = 1.00
|
|
Index Value
|
1,100
|
|
Term TD return
|
10.00%
|
|
Time remaining
|
0.50
|
|
Value of derivatives
|
AMBC = 77.60%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (2.33% - 1.27%) = 1.06%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.27% x (1 – 0.5) = 0.63%
|
Strike price
|
AMBC = 1.00
|
|
Index Value
|
900
|
|
Term TD return
|
-10.00%
|
|
Time remaining
|
0.50
|
|
Value of derivatives
|
AMBC = 12.96%
|
(a) |
change in Proxy Value = (current Proxy Value – beginning Proxy Value) = (0.39% - 1.27%) = -0.88%
|
(b) |
proxy interest = beginning Proxy Value x (1 - Time remaining) = 1.27% x (1 - 0.5) = 0.63%
|
Hypothetical Daily Adjustment when:
|
Hypothetical Performance Credit when:
|
||||
Crediting Method/Term Length/Negative Index Performance Protection
|
Assumed Rate
|
The Index is up 10% at the end of month six
|
The Index is down 10% at the end of month six
|
The Index is up 10% at the end of the Term
|
The Index is down 10%at the end of the Term
|
Index Performance Strategy 1-year Term with 10% Buffer
|
12% Cap
|
7.29%
|
-4.74%
|
10.00%
|
0.00%
|
Index Performance Strategy 3-year Term with 20% Buffer
|
50% Cap
|
7.80%
|
-5.46%
|
10.00%
|
0.00%
|
Index Performance Strategy 3-year Term with 20% Buffer
|
Uncapped with a 100% Participation Rate
|
8.46%
|
-5.93%
|
10.00%
|
0.00%
|
Index Performance Strategy 6-year Term with 10% Buffer
|
Uncapped with a 110% Participation Rate
|
9.22%
|
-8.13%
|
11.00%
|
0.00%
|
Index Guard Strategy 1-year Term with -10% Floor
|
10% Cap
|
5.89%
|
-6.10%
|
10.00%
|
-10.00%
|
Index Precision Strategy 1-year Term with 10% Buffer
|
10% Trigger Rate
|
6.97%
|
-4.06%
|
10.00%
|
0.00%
|
Index Dual Precision Strategy 1-year Term with 10% Buffer
|
7% Trigger Rate
|
5.51%
|
-2.39%
|
7.00%
|
7.00%
|
Index Protection Strategy with Cap 1-year Term with 100% downside protection
|
4% Cap
|
2.20%
|
0.00%
|
4.00%
|
0.00%
|
Index Protection Strategy with Trigger 1-year Term with 100% downside protection
|
3% Trigger Rate
|
1.69%
|
0.00%
|
3.00%
|
0.00%
|
|
Security
Type
|
Security Class
Title
|
Fee Calculation
or
Carry Forward
Rule
|
Amount
Registered
|
Proposed Maximum
Offering Price
Per Unit
|
Maximum
Aggregate
Offering Price
|
Fee Rate
|
Amount of
Registration Fee
|
Carry Forward Form Type
|
Carry Forward File Number
|
Carry Forward Initial effective date
|
Filing Fee Previously
Paid in Connection with Unsold Securities to be Carried Forward
|
Newly Registered Securities
|
||||||||||||
Fees to be Paid
|
Other
|
Registered Indexed
Linked Annuity
Contract and
interests therein |
457(o)
|
N/A
|
N/A
|
$4,000,000,000
|
$147.60/m
|
$590,400.00
|
N/A
|
N/A
|
N/A
|
N/A
|
Carry Forward Securities
|
||||||||||||
Carry
Forward
Securities
|
Other
|
Registered Indexed
Linked Annuity
Contract and
interests therein
|
415(a)(6)
|
N/A
|
N/A
|
$2,797,418,092
|
N/A
|
N/A
|
Form S-1
|
333-274933
|
5/2/23
|
$496,145.60
|
Total Offering Amounts
|
$6,797,418,092
|
$590,400.00
|
||||||||||
Total Fees Previously Paid
|
$0
|
|||||||||||
Total Fee Offsets
|
$0
|
|||||||||||
Net Fees Due
|
$590,400.00
|
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