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As Of Filer Filing For·On·As Docs:Size 4/28/20 Allianz Life Ins Co of New York 424B3 1:3.7M |
Document/Exhibit Description Pages Size 1: 424B3 Index Advantage Ny Prospectus HTML 1.72M
Standard Annuity Features | Available Investment Options |
• Five fixed annuitization options (Annuity Options)• Free withdrawal privilege during the six-year withdrawal charge period• Systematic withdrawal program• Minimum distribution program for certain tax qualified Contracts• Waiver of withdrawal charge benefit• Guaranteed death benefit |
• 16 index-linked investment options (Index Options) based on different combinations of
four credit calculation methods (Crediting Methods) and four nationally recognized third-party broad based equity securities indexes (Index or Indexes)• Three
variable investment options (Variable Options) |
The risk of loss can become greater in the case of an early withdrawal due to withdrawal charges. Withdrawals will be subject to federal and state taxation, and withdrawals taken before age 59 1⁄2 may also be subject to a 10% additional federal tax. If this is a Non-Qualified Contract, a withdrawal will be taxable to the extent that gain exists within the Contract. A Non-Qualified Contract is a Contract that is not purchased under a pension or retirement plan that qualifies for special tax treatment under sections of the Internal Revenue Code (the Code). |
Crediting Methods Currently Available | Indexes Currently Available with All Crediting Methods |
• Index Protection NY Strategy • Index Performance Strategy |
• S&P 500® Index • Russell 2000® Index • Nasdaq-100® Index • EURO STOXX 50® |
Crediting Methods and Indexes may not be available to previously issued Contracts as detailed in Appendix F. |
Crediting Method Highlights All Crediting Methods provide a level of protection against negative Performance Credits from negative Index performance, and a limit on positive Performance Credits from positive Index performance. Performance Credits are the annual return you receive when you allocate assets to an Index Option. |
||
Negative Index Performance Protection | Positive Index Performance Participation Limit | |
Index Protection NY Strategy | • Buffers (the amount of negative Index performance we absorb) – Buffers cannot be less than 5% |
• Caps (the upper limit on positive Index
performance) – Caps cannot be less than 1.50% |
Index Performance Strategy | • Buffers – Buffers cannot be less than 5% |
• Caps – Caps cannot be less than 1.50% |
Variable Options Currently Available | ||
AZL® MVP Growth Index Strategy Fund | AZL® MVP Balanced Index Strategy Fund | AZL® Government Money Market Fund |
Purchasing a Contract: Key Features at a Glance | |
Issue Age (see section 3) |
On the date we issue the Contract (the Issue Date), all Owners and the Annuitant must be age 80 or younger. The Owner is the person or entity designated at issue who may exercise all Contract rights. The Annuitant is the individual upon whose life we base Annuity Payments. |
Purchase Payment Standards (see section 3) |
• $10,000 minimum initial Purchase Payment due on the Issue Date. • You can make additional Purchase Payments of at least $50 during the Accumulation Phase. • $1 million maximum in total Purchase Payments. |
Allocation of Purchase Payments and Contract Value Transfers (see section 3) |
You can allocate your Purchase Payments to any or all of the Allocation Options available under your Contract. We only allow assets to move into the Index Options
on the Index Effective Date and on subsequent Index Anniversaries. • As a result, we hold Purchase Payments you allocate to the Index Options in the AZL Government Money Market Fund until we transfer them to your selected Index Options according to your instructions. For additional Purchase Payments we receive after the Index Effective Date, we transfer the amounts held in the AZL Government Money Market Fund to your selected Index Options on the next Index Anniversary. • On each Index Anniversary, you can transfer Variable Account Value to the available Index Options, and you can transfer Index Option Value (the portion of your Contract Value in a particular Index Option) between Index Options. • Purchase Payments you allocate to an Index Option must be held in the Index Option for one full Index Year before they can receive a Performance Credit. Therefore, additional Purchase Payments we receive after the Index Effective Date that you allocate to an Index Option are not eligible to receive a Performance Credit until the second Index Anniversary after we receive them. • You can only transfer Index Option Value to the Variable Options on every sixth Index Anniversary, at which point you can do so even if the assets you wish to transfer have been in the Index Options for less than six full years. |
Daily Adjustment (see “What is the Daily Adjustment?” in this Summary and section 5) |
The Daily Adjustment is how we calculate Index Option Values on days other than the Index Effective Date or an Index Anniversary. The Daily Adjustment approximates the Index Option Value that will be available on the next Index Anniversary. It is the estimated present value of the future Performance Credit that we will apply on the next Index Anniversary. The Daily Adjustment takes into account any Index gains subject to the Cap, or any Index losses greater than the Buffer, but in the form of the estimated present value. Therefore, the Daily Adjustment could result in a loss beyond the protection of the or Buffer. |
Performance Lock (see “What is the Performance Lock?” in this Summary and section 5) |
A feature that allows you to capture the current Index Option Value during the Index Year for any Index Option . If we execute a Performance Lock for an Index Option we do not apply the Daily Adjustment to it for the remainder of the Index Year and the Index Option Value will not receive a Performance Credit on the next Index Anniversary. |
Product Fee (see the Fee Tables and section 6) |
• Product fee is 1.25%. Accrued daily and deducted on each Quarterly Contract Anniversary (the day that occurs three calendar months after the Issue Date or any subsequent Quarterly Contract Anniversary). The product fee is calculated as a percentage of the Charge Base (the Contract Value on the preceding Quarterly Contract Anniversary, adjusted for subsequent Purchase Payments and withdrawals). |
Purchasing a Contract: Key Features at a Glance | |
Other Contract Fees and Expenses (see the Fee Tables and section 6) |
• An 8.5% declining withdrawal charge applies to withdrawals taken within six years after receipt of each Purchase Payment during
the Accumulation Phase. • $50 contract maintenance charge assessed annually if the total Contract Value is less than $100,000. • $25 fee per transfer if you make more than twelve transfers between Variable Options in a Contract Year. • Variable Option operating expenses before fee waivers and expense reimbursements of 0.67% to 0.88% of the average daily net assets. A Contract Year is any period of twelve months beginning on the Issue Date or a subsequent Contract Anniversary. A Contract Anniversary is a twelve-month anniversary of the Issue Date or any subsequent Contract Anniversary. |
You can withdraw your Contract Value, subject to any applicable withdrawal charge, and federal and state taxation. Withdrawals taken before age 59 1⁄2 may also be subject to a 10% additional federal tax. | |
Free Withdrawal Privilege (see section 7) |
Allows you to withdraw 10% of your total Purchase Payments each Contract Year during the Accumulation Phase without incurring a withdrawal charge. • Any unused free withdrawal privilege in one Contract Year is not added to the amount available in the next Contract Year. • If you withdraw more than the free withdrawal privilege we will assess a withdrawal charge if the withdrawal is taken from a Purchase Payment we received within the last six years. • Not available if you take a full withdrawal of your total Contract Value. |
Systematic Withdrawal Program (see section 7) |
Provides automatic withdrawals of at least $100 to you at a frequency you select. These withdrawals: • reduce the amount available under the free withdrawal privilege, and • are subject to a withdrawal charge if you exceed the free withdrawal privilege. |
Minimum Distribution Program (see section 7) |
If you own an Individual Retirement Annuity (IRA), SEP IRA or Inherited IRA Contract, this program provides payments to you
designed to meet the Code’s minimum distribution requirements. These withdrawals: • reduce the amount available under the free withdrawal privilege, but • are not subject to a withdrawal charge if you exceed the free withdrawal privilege. |
Waiver of Withdrawal Charge Benefit (see section 7) |
This benefit allows you to take a withdrawal without incurring a withdrawal charge if you are confined to a nursing home for a period of at least 90 consecutive days. |
Annuity Payments (see section 8) |
Annuity Payments can provide a guaranteed lifetime fixed income stream with certain tax advantages. We designed the Annuity Payments for Owners who no longer need
immediate access to Contract Value to meet their short-term income needs. • We offer five Annuity Options that provide payments for life, life and term certain, or life with refund. • We base Annuity Payments on your Contract Value, the Annuity Option you select, and the lifetime and age of the Annuitant(s). • For an individually owned Contract, Annuity Payments can be either single or joint. |
Death Benefit (see section 9) |
The Contract automatically includes the Traditional Death Benefit for no additional fee. The death benefit is paid upon the first death of any Determining Life
during the Accumulation Phase. • We establish the Determining Lives at Contract issue and they generally do not change unless there is a divorce or you establish a Trust. • The Determining Life (or Lives) is either the Owner(s) or the Annuitant if the Owner is a non-individual.If a Determining Life dies during the Accumulation Phase your Beneficiary(s) will receive the greater of the Contract Value or the total Purchase Payments adjusted for withdrawals. • Withdrawals reduce your total Purchase Payments proportionately, which means this value may be reduced by more than the amount withdrawn. • If you change Owner(s) the death benefit may be reduced to Contract Value. |
Material Contract Variations (see Appendix F) |
The product or certain product features may not currently be available in all Contracts or may not be available from all selling firms or from all Financial Professionals. Your Financial Professional can also provide information regarding availability of Allocation Options. |
Purchasing a Contract: Key Features at a Glance | |
Customer Service (see the last page of this prospectus) |
If you need customer service (for Contract changes, information on Contract Values, requesting a withdrawal or transfer,
changing your allocation instructions, etc.) please contact our Service Center at (800) 624-0197. Our Service Center is the area of our company that issues Contracts and provides Contract
maintenance and routine customer service. You can also contact us by: • mail at Allianz Life Insurance Company of New York, P.O. Box 561, Minneapolis, MN 55440-0561, or • email at Contact.Us@allianzlife.com. |
• | If the Index Return is positive, the Performance Credit is equal to the Index Return up to the Cap. |
• | If the current Index Value is equal to the Index Value on the last Index Anniversary, the Performance Credit is zero. |
• | If the Index Return is negative and the loss is: |
• | If the Index Return is positive, the Performance Credit is equal to the Index Return up to the Cap. |
• | If the current Index Value is equal to the Index Value on the last Index Anniversary, the Performance Credit is zero. |
• | If the Index Return is negative and the loss is: |
– | less than or equal to the Buffer, the Performance Credit is zero. We absorb any loss up to the Buffer. |
– | greater than the Buffer, the negative Performance Credit is equal to the negative Index Return in excess of the Buffer. You participate in any losses beyond the Buffer. |
• The Index Protection NY Strategy and Index Performance Strategy allow negative Performance Credits. A negative Performance Credit means you can lose principal and previous earnings. These losses could be significant. |
• Because we calculate Index Returns only on a single date in time, you may experience negative or flat performance even though the Index you selected for a given Crediting Method experienced gains through some, or most, of the Index Year. |
Index Protection NY Strategy | Index Performance Strategy | |
What is the asset protection? | • Most protection – generally has higher Buffers than the Index Performance Strategy. • Buffer absorbs a percentage of loss, but you receive a negative Performance Credit for losses greater than the Buffer. • Potential for large losses in any one Index Year. • Impacted by very large negative market movements because small and moderate negative market movements are absorbed by the Buffer. |
• Less protection – generally has lower Buffers than the Index Protection NY Strategy. • Buffer absorbs a percentage of loss, but you receive a negative Performance Credit for losses greater than the Buffer. • Potential for large losses in any one Index Year. • More sensitive to large negative market movements because small negative market movements are absorbed by the Buffer. In a period of extreme negative market performance, the risk of loss is greater with the Index Performance Strategy. |
What is the growth opportunity? | • Less growth opportunity – generally has lower Caps than the Index Performance Strategy. • Growth opportunity limited by the Cap. |
• Most growth opportunity – generally has higher Caps than the Index Protection NY Strategy. • Growth opportunity limited by the Cap. • May perform best in a strong market. |
What can change within a Crediting Method? | • Renewal Caps for existing Contracts can change annually. • Caps are subject to a 1.50% minimum, and Buffers are subject to a 5% minimum. |
• Renewal Caps for existing Contracts can change annually. • Caps are subject to a 1.50% minimum, and Buffers are subject to a 5% minimum. |
• You participate in any negative Index Return in excess of the Buffer, which reduces your Contract Value. For example, if we set the Buffer at 5% we would absorb the
first -5% of Index Return and you could lose up to 95% of the Index Option Value. • The minimum Buffer is the least amount of protection that you could receive from negative Index Returns for any Index Option. • Caps 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 Caps will be equal and reduced to the minimum of 1.50%. • Caps and Buffers can be different from Index Option to Index Option. For example, Caps for the Index Performance Strategy 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 the Index Protection NY Strategy and Index Performance Strategy. They may also be different from Contract-to-Contract depending on Index Effective Date. |
Historical information on the Caps and Buffers is provided in Appendix C. This information is for historical purposes only and is not a representation as to future Caps or Buffers. |
• Caps may be different between newly issued and existing Contracts, and between existing Contracts issued on the same month and day in different years. For example, assume that in January 2017 we set Caps for the Index Performance Strategy with the S&P 500® Index as follows: |
– 13% initial rate for new Contracts issued in 2017, |
– 14% renewal rate for existing Contracts issued in 2016, and |
– 12% renewal rate for existing Contracts issued in 2015. |
• If your Contract is within its Free Look/Right to Examine period you may be able to take advantage of any increase in initial Caps by cancelling your Contract and purchasing a new Contract. |
• | The Contract Value is the sum of your Variable Account Value and Index Option Values. Contract Value reflects any previously deducted fees and charges, but does not reflect fees and charges that we would apply on liquidation. The cash surrender value reflects all fees and charges that we would apply on liquidation. |
• | Your Variable Account Value is the sum of the values in your selected Variable Options. It includes the deduction of Variable Option operating expenses, and any previously assessed transfer fee, contract maintenance charge, product fee, and withdrawal charge. It changes each Business Day based on the performance of the Variable Options. |
• | Your total Index Option Value is the sum of the values in each of your selected Index Options. Each Index Option Value includes any Performance Credits from previous Index Anniversaries and the deduction of any previously assessed contract maintenance charge, product fee, and withdrawal charge. Amounts removed from the Index Options during the Index Year for withdrawals and Contract expenses do not receive a Performance Credit on the next Index Anniversary, but the amount remaining does receive a Performance Credit subject to the applicable Cap or Buffer. |
– | On each Business Day during the Index Year other than the Index Effective Date or an Index Anniversary, we calculate the current Index Option Value for each Index Option by adding a Daily Adjustment to the Index Option Base. The Index Option Base is the amount you allocate to an Index Option adjusted for withdrawals, deduction of Contract fees and expenses, transfers into or out of the Index Option, and the application of any Performance Credits. |
(i) | any Index gains during the Index Year subject to the Cap, |
(ii) | any Index losses greater than the Buffer, and |
(iii) | the number of days until the next Index Anniversary.. |
We will not provide advice or notify you regarding whether you should exercise a Performance Lock or the optimal time for doing so. We will not warn you if you exercise a Performance Lock at a sub-optimal time. We are not responsible for any losses related to your decision whether or not to exercise a Performance Lock. Automatic Performance Locks are not available to Contracts issued before August 24, 2015, or that have a Contract number starting with GAZ. |
The outbreak of the novel coronavirus known as COVID-19 was declared a pandemic by the World Health Organization in March 2020. As of May 1, 2020, the COVID-19 pandemic has led to significant volatility and negative returns in the financial markets. These market conditions have impacted the performance of the Indexes to which the Index Options are linked, as well as the funds underlying the Variable Options. If these market conditions continue, and depending on your individual circumstances (e.g., your selected Allocation Options and the timing of any Purchase Payments, transfers, or withdrawals), you may experience (perhaps significant) negative returns under the Contract. The COVID-19 pandemic and other market factors have resulted in an abnormally low interest rate environment, in which certain rates have gone negative. This low level of rates can affect the returns of an Index, the level of Caps, and other product features, and the performance of your Contract. The duration of the COVID-19 pandemic, and the future impact that the pandemic may have on the financial markets and global economy, cannot be foreseen. You should consult with a Financial Professional about how the COVID-19 pandemic and the recent market conditions may impact your future investment decisions related to the Contract, such as purchasing the Contract or making Purchase Payments, transfers, or withdrawals, based on your individual circumstances. |
January 1, 2010 through December 31, 2019 | |||||||
S&P 500® Index | Nasdaq-100® Index | Russell 2000® Index | EURO STOXX 50® | ||||
Returns without dividends | 11.80% | 17.44% | 11.35% | 3.16% | |||
Returns with dividends | 14.12% | 18.77% | 12.86% | 7.17% |
• | You will no longer participate in Index performance, positive or negative, for the remainder of the Index Year for the locked Index Option. This means that under no circumstances will your Index Option Value increase during the remainder of the Index Year. |
• | You will not receive a Performance Credit on any locked Index Option on the next Index Anniversary. |
• | We use the Daily Adjustment calculated at the end of the current Business Day on the Lock Date to determine your locked Index Option Value. This means you will not be able to determine in advance your locked Index Option Value, and it may be higher or lower than it was at the point in time you requested a manual Performance Lock, or that your Index Option reached its target for an automatic Performance Lock. |
• | If a Performance Lock is executed when your Daily Adjustment has declined, you will lock in any loss. It is possible that you would have realized less of a loss or no loss if the Performance Lock occurred at a later time, or if the Index Option was not locked. |
• | We will not provide advice or notify you regarding whether you should exercise a Performance Lock or the optimal time for doing so. We will not warn you if you exercise a Performance Lock at a sub-optimal time. We are not responsible for any losses related to your decision whether or not to exercise a Performance Lock. |
• | the Index is discontinued, |
• | we are unable to use the Index because, for example, changes to an Index make it impractical or expensive to purchase derivative hedging instruments to hedge the Index, or we are not licensed to use the Index, or |
• | the method of calculation of the Index Values changes substantially, resulting in significantly different Index Values and performance results. This could occur, for example, if an Index altered the types of securities tracked, or the weighting of different categories of securities. |
• | we do not change the Charge Base we use to calculate the product fee, and |
• | the Caps and Buffers for the replaced Index will apply to the new Index. We do not change the Buffers applicable to your Contract, or the current Caps that we set on the prior Index Anniversary. |
• | market volatility, |
• | our hedging strategies and investment performance, |
• | the availability of hedging instruments, |
• | the amount of money available to us through Contract fees and expenses to purchase hedging instruments, |
• | your Index Effective Date, |
• | the level of interest rates, |
• | utilization of Contract benefits by Owners, and |
• | our profitability goals. |
As a result of the COVID-19 pandemic, economic uncertainties have arisen which are likely to negatively impact Allianz Life of New York’s net income and surplus. The extent to which the COVID-19 pandemic impacts our business (including our ability to timely process applications or claims), net income, and surplus, as well as our capital and liquidity position, will depend on future developments, which are highly uncertain and cannot be estimated, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. |
Number of Complete Years Since Purchase Payment |
Withdrawal Charge Amount | |
0 | 8.5% | |
1 | 8% | |
2 | 6.5% | |
3 | 5% | |
4 | 3% | |
5 | 1% | |
6 years or more | 0% |
(1) | The Contract provides a free withdrawal privilege that allows you to withdraw 10% of your total Purchase Payments annually without incurring a withdrawal charge, as discussed in section 7, Access to Your Money – Free Withdrawal Privilege. |
(2) | The Withdrawal Charge Basis is the total amount under your Contract that is subject to a withdrawal charge, as discussed in section 6, Expenses – Withdrawal Charge. |
(3) | We count all transfers made in the same Business Day as one transfer, as discussed in section 6, Expenses – Transfer Fee. The transfer fee does not apply to transfers to or from the Index Options and these transfers do not count against your free transfers. Transfers are subject to the policies discussed in section 4, Variable Options – Excessive Trading and Market Timing. |
(4) | New York does not currently impose this tax, but we reserve the right to deduct this charge if they do so in the future. This is the maximum charge we could deduct if we exercise this right, as discussed in section 6, Expenses – Premium Tax. |
(5) | Waived if the Contract Value is at least $100,000, as discussed in section 6, Expenses – Contract Maintenance Charge. |
(6) | We do not assess the product fee during the Annuity Phase. See section 6, Expenses – Product Fee. |
Minimum | Maximum | ||
Total annual Variable Option operating expenses (including management fees, distribution or 12b-1 fees, and other expenses) before fee waivers and expense reimbursements |
0.64% | 0.72% |
Variable Option | Management fees |
Rule 12b-1 fees |
Other expenses |
Acquired fund fees and expenses |
Total annual fund operating expenses before fee waivers and/or expense reimbursements |
BLACKROCK | |||||
AZL Government Money Market Fund(1) | .35 | .25 | .04 | – | .64 |
ALLIANZ FUND OF FUNDS | |||||
AZL MVP Balanced Index Strategy Fund(2) | .10 | – | .04 | .58 | .72 |
AZL MVP Growth Index Strategy Fund(2) | .10 | – | .02 | .56 | .68 |
(1) | Other Expenses for the AZL Government Money Market Fund include recoupment of prior waived fees in the amount of 0.24%. The Manager has voluntarily undertaken to waive, reimburse, or pay the Fund’s expenses to the extent necessary in order to maintain a minimum daily net investment income for the Fund of 0.00%. The recoupment of prior waived fees reflects the recoupment of amounts previously waived, reimbursed, or paid by the Manager under this arrangement. Such recoupments are subject to the following limitations: (1) the repayments will not cause the Fund’s net investment income to fall below 0.00%; (2) the repayments must be made no later than three years after the end of the fiscal year in which the waiver, reimbursement, or payment took place; and (3) any expense recovery paid by the Fund will not cause its expense ratio to exceed 0.87%. See the Investment Option prospectus for further information. |
(2) | The underlying funds may pay 12b-1 fees to the distributor of the Contracts for distribution and/or administrative services. The underlying funds do not pay service fees or 12b-1 fees to the Allianz Fund of Funds and the Allianz Fund of Funds do not pay service fees or 12b-1 fees. The underlying funds of the Allianz Fund of Funds may pay service fees to the insurance companies issuing variable contracts, or their affiliates, for providing customer service and other administrative services to contract purchasers. The amount of such service fees may vary depending on the underlying fund. |
Total annual Variable Option operating expenses before any fee waivers or expense reimbursements of: | 1 Year | 3 Years | 5 Years | 10 years |
0.72% (maximum Investment Option operating exp.) | $1,014 | $1,393 | $1,748 | $2,737 |
0.64% (minimum Investment Option operating exp.) | $1,006 | $1,369 | $1,708 | $2,655 |
2) | If you annuitize your Contract and begin Annuity Payments at the end of each time period. The earliest available Annuity Date (the date we begin making Annuity Payments) is 13 months after the Issue Date. |
Total annual Variable Option operating expenses before any fee waivers or expense reimbursements of: | 1 Year | 3 Years | 5 Years | 10 years |
0.72% (maximum Investment Option operating expense) | N/A | $713 | $1,248 | $2,687 |
0.64% (minimum Investment Option operating expense) | N/A | $689 | $1,208 | $2,605 |
Total annual Variable Option operating expenses before any fee waivers or expense reimbursements of: | 1 Year | 3 Years | 5 Years | 10 years |
0.72% (maximum Investment Option operating expense) | $249 | $763 | $1,298 | $2,737 |
0.64% (minimum Investment Option operating expense) | $241 | $739 | $1,258 | $2,655 |
Period or Year Ended | AUV at Beginning of Period | AUV at End of Period | Number of Accumulation Units Outstanding at End of Period |
AZL Government Money Market Fund | |||
12/31/2014 | N/A | 12.755 | 124.00 |
12/31/2015 | 12.755 | 12.756 | 249.00 |
12/31/2016 | 12.756 | 12.757 | 444.00 |
12/31/2017 | 12.757 | 12.763 | 524.00 |
12/31/2018 | 12.763 | 12.893 | 629.00 |
12/31/2019 | 12.893 | 13.072 | 774.00 |
AZL MVP Balanced Index Strategy Fund | |||
12/31/2014 | N/A | 12.956 | 13.00 |
12/31/2015 | 12.956 | 12.927 | 60.00 |
12/31/2016 | 12.927 | 13.782 | 87.00 |
12/31/2017 | 13.782 | 15.353 | 85.00 |
12/31/2018 | 15.353 | 14.671 | 97.00 |
12/31/2019 | 14.671 | 17.152 | 108.00 |
AZL MVP Growth Index Strategy Fund | |||
12/31/2014 | N/A | 14.280 | 8.00 |
12/31/2015 | 14.280 | 14.165 | 29.00 |
12/31/2016 | 14.165 | 15.128 | 44.00 |
12/31/2017 | 15.128 | 17.543 | 47.00 |
12/31/2018 | 17.543 | 16.412 | 62.00 |
12/31/2019 | 16.412 | 19.779 | 57.00 |
• | The Business Day before the Annuity Date. |
• | The Business Day we process your request for a full withdrawal. |
• | Upon the death of any Owner (or the Annuitant if the Owner is a non-individual), the Business Day we first receive a Valid Claim from any one Beneficiary, unless the surviving spouse/Beneficiary continues the Contract. If there are multiple Beneficiaries, the remaining Contract Value continues to fluctuate with the performance of the Allocation Options until the complete distribution of the death benefit. A Valid Claim is the documents we require to be received in Good Order at our Service Center before we pay any death claim. |
• | all applicable phases of the Contract (Accumulation Phase and/or Annuity Phase) have ended, and/or |
• | if we received a Valid Claim, all applicable death benefit payments have been made. |
• | We pay a death benefit to the Beneficiary unless the Beneficiary is the surviving spouse and continues the Contract. |
• | If the deceased Owner was a Determining Life and the surviving spouse Beneficiary continues the Contract: |
– | we increase the Contract Value to equal the total Purchase Payments adjusted for withdrawals 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(s) receives the Contract Value. |
• | If the deceased Owner was not a Determining Life, the Traditional Death Benefit is not available and the Beneficiary(s) receives the Contract Value. |
• | The Beneficiary becomes the Payee. If we are still required to make Annuity Payments under the selected Annuity Option, the Beneficiary also becomes the new Owner. |
• | If the deceased was not an Annuitant, Annuity Payments to the Payee continue. No death benefit is payable. |
• | If the deceased was the only surviving Annuitant, Annuity Payments end or continue as follows. |
• | you remove a Joint Owner due to divorce, we also remove that person as a Determining Life, or |
• | you establish a jointly owned Non-Qualified Contract and change ownership to a Trust, we remove the prior Owner who is not the Annuitant as a Determining Life. |
FOR JOINTLY OWNED CONTRACTS: The sole primary Beneficiary is the surviving Joint Owner regardless of any other named primary Beneficiaries. If both Joint Owners die simultaneously, we pay the death benefit to the named contingent Beneficiaries or equally to the estate of the Joint Owners if there are no named contingent Beneficiaries. |
• 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 does not change the Determining Life (Lives). |
• | The minimum initial Purchase Payment due on the Issue Date is $10,000. |
• | You can make additional Purchase Payments of $50 or more during the Accumulation Phase. |
• | We do not accept additional Purchase Payments on or after the Annuity Date. |
• | The maximum total Purchase Payments we accept is $1 million. |
On your application if you select… | Your Index Effective Date will be either… |
the earliest Index Effective Date | • your Issue Date, or • the first Business Day of the next month if the Issue Date is the 29th, 30th, or 31st of a month |
the deferred Index Effective Date | • your first Quarterly Contract Anniversary, or • the next Business Day if the first Quarterly Contract Anniversary occurs on a non-Business Day, or the first Business Day of the next month if the first Quarterly Contract Anniversary is the 29th, 30th, or 31st of a month |
• In order to apply Purchase Payments we receive after the Index Effective Date to your selected Index Option(s) on the next Index Anniversary, we must receive them before the end of the Business Day on the Index Anniversary (or before the end of the prior Business Day if the anniversary is a non-Business Day). |
• Variable Options are subject to Contract fees and expenses (e.g. product fee), and market risk and assets you allocate to them may lose value, including any Purchase Payments we hold in the AZL Government Money Market before transferring them to your selected Index Options. |
For Owners of Qualified Contracts, AIP is not available if you have an Inherited IRA Contract, an Inherited Roth IRA Contract, or if your Contract is funding a plan that is tax qualified under Section 401 of the Code. |
Investment Management Company and Adviser/Subadviser |
Investment Option Name |
Asset Class | Investment Objective |
Principal Investment Strategies (Normal market conditions) |
Allianz Fund of Funds | ||||
Allianz Investment Management LLC | AZL MVP Balanced Index Strategy Fund | A “Fund of Funds” Model Portfolio | Long-term capital appreciation with preservation of capital as an important consideration | Invests primarily (approximately 95%) in a combination of five underlying index funds (generally allocated 40% to 60% to underlying equity index funds and 40% to 60% to underlying bond index fund), combined with the MVP (Managed Volatility Portfolio) risk management process intended to adjust the risk of the portfolio based on quantitative indicators of market risk. |
AZL MVP Growth Index Strategy Fund | A “Fund of Funds” Model Portfolio | Long-term capital appreciation | Invests primarily (approximately 95%) in a combination of five underlying index funds (generally allocated 65% to 85% to underlying equity index funds and 15% to 35% to underlying bond index fund), combined with the MVP (Managed Volatility Portfolio) risk management process intended to adjust the risk of the portfolio based on quantitative indicators of market risk. | |
Blackrock | ||||
Allianz Investment Management LLC/BlackRock Advisors, LLC | AZL Government Money Market Fund | Cash Equivalent | Current income consistent with stability of principal | Invests at least 99.5% of its total assets in cash, government securities, or repurchase agreements that are collateralized fully. Invests at least 80% in government securities or in repurchase agreements collateralized by government securities. Investments include U.S. Treasury bills, notes and other obligations issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, and repurchase agreements secured by such obligations. In addition, the Fund may invest in variable and floating rate instruments. During extended periods of low interest rates, and due in part to contract fees and expenses, the yield of the AZL Government Money Market Fund may also become extremely low and possibly negative. |
• | Your request for a transfer must clearly state the Variable Options involved and how much to transfer. |
• | Your right to make transfers is subject to the Excessive Trading and Market Timing policy discussed later in this section. |
• | Variable Account Value transfers between Variable Options do not change your Purchase Payment default instructions. |
• | Dilution of the interests of long-term investors in a Variable Option, if market timers or others transfer into a Variable Option at prices that are below their true value, or transfer out at prices above their true value. |
• | An adverse effect on portfolio management, such as causing a Variable Option to maintain a higher level of cash or causing a Variable Option to liquidate investments prematurely. |
• | Increased brokerage and administrative expenses. |
• | Limit transfer frequency (for example, prohibit more than one transfer a week, or more than two a month, etc.). |
• | Restrict the transfer method (for example, requiring all transfers be sent by first-class U.S. mail and rescinding electronic transfer privileges). |
• | Require a minimum time period between each transfer into or out of the same Variable Option. Our current Excessive Trading and Market Timing policy, which is subject to change without notice, prohibits “round trips” within 14 calendar days. We do not include transfers into and/or out of the AZL Government Money Market Fund when available in your Contract or any automatic transfers made under any of our programs or Contract features. Round trips are transfers into and back out of the same Variable Option, or transfers out of and back into the same Variable Option. |
• | Refuse transfer requests made on your behalf by an asset allocation and/or market timing service. |
• | Limit the dollar amount of any single Purchase Payment or transfer request to a Variable Option. |
• | Prohibit transfers into specific Variable Options. |
• | Impose other limitations or restrictions to the extent permitted by federal securities laws. |
• | Our monitoring will be 100% successful in detecting all potentially disruptive trading activity. |
• | Revoking electronic transfer privileges will successfully deter all potentially disruptive trading. |
This Contract is not designed for professional market timing organizations, or other persons using programmed, large, or frequent transfers, and we may restrict excessive or inappropriate transfer activity. |
Variable Account Value increases when…. | Variable Account Value decreases when…. |
• you add assets to a Variable Option by Purchase Payment or Contract Value transfer • there is positive Variable Option performance |
• you take assets out of a Variable Option by withdrawal or Contract Value transfer • there is negative Variable Option performance • we deduct Contract expenses |
Contract expenses we deduct from the Variable Options include the product fee, contract maintenance charge, withdrawal charge and transfer fee as described in section 6, Expenses. Variable Options include Purchase Payments we hold in the AZL Government Money Market Fund before transferring them to your selected Index Options. |
Index Option Values increase when…. | Index Option Values decrease when…. |
• you add assets to an Index Option by Purchase Payment or Contract Value transfer • you receive a positive Performance Credit or Daily Adjustment |
• you take assets out of an Index Option by withdrawal or Contract Value transfer • you receive a negative Performance Credit or Daily Adjustment • we deduct Contract expenses |
Contract expenses we deduct from the Index Options include the product fee, contract maintenance charge and withdrawal charge as described in section 6, Expenses. |
• | We receive at our Service Center an additional Purchase Payment of $3,000 from you before the end of the Business Day. |
• | When the New York Stock Exchange closes on that Business Day, we determine that the accumulation unit value is $13.25 for the subaccount of your selected Variable Option. |
• | We then divide $3,000 by $13.25 and credit your Contract that night with 226.415094 subaccount accumulation units for your selected Variable Option. |
• | any Purchase Payment received that day which you allocated to that Index Option, and |
• | any Contract Value transferred into that Index Option. |
• | the Daily Adjustment if this is not an Index Anniversary , or |
• | a Performance Credit if this is an Index Anniversary. |
• | We multiply each Index Option Base by its Performance Credit and add this amount to its Index Option Base. |
• | Then we set each Index Option Value equal to its Index Option Base. |
• | Additional Purchase Payments received on an Index Anniversary and allocated to this Index Option, and transfers of Variable Account Value or Index Option Value into this Index Option, increase these values by the dollar amount allocated or transferred. |
• | Transfers out of this Index Option reduce these values by the dollar amount removed from the Index Option. |
• | Partial withdrawals you request and Contract expenses we deduct reduce these values by the dollar amount withdrawn from the Index Option. |
– | We deduct partial withdrawals and Contract expenses from the Index Options proportionately based on the percentage of Contract Value in each Index Option using values determined at the end of the Business Day before we process the withdrawal or deduct the Contract expense. However, if you specifically direct us to take a partial withdrawal from a specific Index Option we reduce that Index Option Value by the dollar amount you specify, including any applicable withdrawal charge. |
– | We then reduce each Index Option Base by the same percentage that the amount withdrawn reduced its associated Index Option Value. |
• Partial withdrawals and Contract expenses we deduct from the Index Options during the Index Year do not receive a Performance Credit on the next Index Anniversary. However, the remaining amount in the Index Options is eligible for a Performance Credit on the next Index Anniversary. |
• You cannot specify from which Allocation Option we deduct Contract expenses; we deduct Contract expenses from each Allocation Option proportionately based on the percentage of Contract Value in each Allocation Option. However, you can specify from which Allocation Option we deduct a partial withdrawal. There is no consistent financial advantage to deducting a partial withdrawal from any specific Allocation Option. |
Crediting Method | If Index Value is less than it was on the prior Index Anniversary* (i.e., Index Return is negative): |
If Index Value is equal to or greater than it was on the prior Index Anniversary* (i.e., Index Return is zero or positive): |
Index Performance Strategy | Performance Credit is equal to the negative Index Return in excess of the Buffer.Assume the Buffer is 10%. If the Index Return
is… • -8%, the Performance Credit is zero. • -12%, the Performance Credit is -2%. |
Performance Credit is equal to the Index Return up to the Cap set on the prior Index AnniversaryAssume the Cap is 8%. If the Index Return is… • 0%, the Performance Credit is zero. • 6%, the Performance Credit is 6%. • 12%, the Performance Credit is 8%. |
Index Protection NY Strategy | Performance Credit is equal to the negative Index Return in excess of the Buffer.Assume the Buffer is 30%. If the Index Return
is… • -12%, the Performance Credit is zero. • -32%, the Performance Credit is -2%. |
Performance Credit is equal to the Index Return subject to the Cap set on the prior Index Anniversary*Assume the Cap is 5%. If the Index Return is… • 0%, the Performance Credit is zero. • 4%, the Performance Credit is 4%. • 12%, the Performance Credit is 5%. |
* Or the Index Effective Date if this is the first Index Anniversary. |
(1) | Upon the death of the Owner, we continue to assess this product fee under death benefit payment Option B, and with optional payments under death benefit payment Option C, as noted in section 9, Death Benefit. |
Issue Date | Non-Quarterly Contract Anniversaries | Quarterly Contract Anniversaries* |
• The Charge Base is equal to your initial Purchase Payment.• We begin calculating and accruing the daily product fee, on the day after the Issue Date. | • First we calculate and accrue the daily product 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 amount we receive. – If you take a partial withdrawal (including a Penalty-Free Withdrawal), or we withdraw Contract fees and expenses, we decrease the Charge Base by the percentage of Contract Value withdrawn. |
• First we process all daily transactions and determine your Contract Value. Daily transactions include any gains/losses due to Variable Option
performance or application of any Daily Adjustment (or Credit if this is also an Index Anniversary), any additional Purchase Payment, and deductions for withdrawals and Contract fees and expenses, including deduction of the accrued daily product fee for the prior quarter. – We deduct the accrued product fee for the prior quarter on a dollar for dollar basis from the Contract Value, and proportionately from each Allocation Option.• Then we set the Charge Base equal to this Contract Value and we calculate and accrue the next quarter’s daily product 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 product fee we calculate and accrue on the next day. |
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Examples of how we calculate the product fee are included in Appendix E. |
We do not treat the deduction of the accrued product fee as a withdrawal when computing total Purchase Payments adjusted for withdrawals under the Traditional Death Benefit (see section 9). |
• | If you take a full withdrawal of the total Contract Value, we deduct the final accrued product fee before processing the withdrawal. |
• | If you annuitize the Contract, we deduct the final accrued product fee before calculating Annuity Payments. |
• | Upon the death of an Owner (or Annuitant if the Owner is a non-individual), we deduct the final accrued product fee before calculating the death benefit if death benefit payment Option A or Annuity Payments under death benefit payment Option C is selected. |
If on a Quarterly Contract Anniversary (or the next Business Day if the Quarterly Contract Anniversary is a non-Business Day) the Contract Value is less than the accrued product fee, we deduct your total remaining Contract Value to cover the accrued product fee and reduce your Contract Value to zero. If the deduction of the accrued product fee reduces your Contract Value to zero and the Traditional Death Benefit has ended, we treat this as a full withdrawal and your Contract ends. |
• | During the Accumulation Phase, if the total Contract Value for all Allianz Index Advantage® New York Contracts you own is at least $100,000 at the end of the last Business Day before the Contract Anniversary, or if the Contract Value for this single Allianz Index Advantage® New York Contract is at least $100,000 on the Contract Anniversary. We determine the total Contract Value for all individually owned Allianz Index Advantage® New York Contracts by using the Owner’s social security number, and for non-individually owned Allianz Index Advantage® New York Contracts we use the Annuitant’s social security number. |
• | During the Annuity Phase. |
• | When paying death benefits under death benefit payment options A, B, or C. |
• | on a dollar for dollar basis from the Contract Value on the Contract Anniversary (or the next Business Day if the Contract Anniversary is a non-Business Day), and |
• | we deduct it proportionately from each Allocation Option. |
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 $30,000 and make another Purchase Payment in the first month of the second Contract Year of $70,000. In the third month of the third Contract Year, your Contract Value is $110,000 and you request a $52,000 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. | 1. Purchase Payments beyond the withdrawal charge period. All payments are still within the withdrawal charge period, so this does not apply. | |||
2. Then, if this is a partial withdrawal, we withdraw from the free withdrawal privilege (see section 7, Access to Your Money – Free Withdrawal Privilege). This withdrawal is not subject to a withdrawal charge, it reduces the Withdrawal Charge Basis, and is withdrawn from Purchase Payments on a FIFO basis. | 2. Amounts available under the free withdrawal privilege. You did not take any other withdrawals this year, so you can withdraw up to 10% of your total payments (or $10,000) without incurring a withdrawal charge. We also deduct this $10,000 from the first Purchase Payment. | |||
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. This withdrawal reduces 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 $30,000, which is subject to a 6.5% withdrawal charge, and you receive $18,700. We determine this amount as follows: (amount withdrawn) x (1 – withdrawal charge) = the amount you receive, or: $20,000 x 0.935 = $18,700 Next we withdraw from the second Purchase Payment. So far, you received $28,700 ($10,000 under the free withdrawal privilege and $18,700 from the first Purchase Payment), so we withdraw $23,300 from the second Purchase Payment to equal the $52,000 you requested. The second Purchase Payment is subject to an 8% withdrawal charge. We calculate the total amount withdrawn and its withdrawal charge as follows: (the amount you receive) ÷ (1 – withdrawal charge) = amount withdrawn, or: $23,300 ÷ 0.92 = $25,326. |
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Number of Complete Years Since Purchase Payment |
Withdrawal Charge Amount |
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0 1 2 3 4 5 6 years or more |
8.5% 8% 6.5% 5% 3% 1% 0% |
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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 $55,326 from your Contract, of which you received $52,000 and paid a withdrawal charge of $3,326. |
• We do not reduce the Withdrawal Charge Basis for deduction of Contract expenses other than the withdrawal charge. This means that upon a full withdrawal, if your Contract Value is less than your remaining Purchase Payments that are still subject to a withdrawal charge we will assess a withdrawal charge on more than the amount withdrawn. This can occur because your Contract Value was reduced for: |
– deductions of Contract 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 may also be subject to ordinary income taxes, and a 10% additional federal tax if you are under age 59 1⁄2, and the amount of Contract Value available for withdrawal may be affected by the Daily Adjustment (which can be negative). |
• For tax purposes in most instances, withdrawals from Non-Qualified Contracts are considered to come from earnings first, not Purchase Payments. |
• | by taking a withdrawal; |
• | by taking required minimum distributions (Qualified Contracts only) as discussed in “Minimum Distribution Program and Required Minimum Distribution (RMD) Payments” later in this section; |
• | by taking Annuity Payments; or |
• | when we pay a death benefit. |
• | total Contract Value, |
• | less any final product fee and final contract maintenance charge, and |
• | less any withdrawal charge. |
• Withdrawals may be subject to a withdrawal charge, ordinary income taxes, and a 10% additional federal tax if you are under age 59 1⁄2, and the amount of Contract Value available for withdrawal may be affected by the Daily Adjustment (which can be negative). |
• We may be required to provide information about you or your Contract to government regulators. We may also be required to stop Contract disbursements and thereby refuse any transfer requests, and refuse to pay any withdrawals, surrenders, or death benefits until we receive instructions from the appropriate regulator. If, pursuant to SEC rules, the AZL Government Money Market Fund suspends payment of redemption proceeds in connection with a fund liquidation, we will delay payment of any transfer, partial withdrawal, surrender, or death benefit from the AZL Government Money Market Fund subaccount until the fund is liquidated. |
• Ordinary income taxes and tax penalties may apply to systematic withdrawals. |
• The systematic withdrawal program is not available while you are receiving required minimum distribution payments. |
• You should consult a tax adviser before purchasing a Qualified Contract that is subject to RMD payments. |
• The minimum distribution program is not available while you are receiving systematic withdrawals. |
• | the New York Stock Exchange is closed (other than customary weekend and holiday closings); |
• | trading on the New York Stock Exchange is restricted; |
• | an emergency (as determined by the SEC) exists as a result of which disposal of the Variable Option shares is not reasonably practicable or we cannot reasonably value the Variable Option shares; or |
• | The Contract Value on the Annuity Date. |
• | The age of the Annuitant and any joint Annuitant on the Annuity Date. |
• | The gender of the Annuitant and any joint Annuitant where permitted. |
• | The Annuity Option you select. |
• | Your Contract’s interest rate (or current rates, if higher) and mortality table. |
If you do not choose an Annuity Option before the Annuity Date, we make Annuity Payments to the Payee under Annuity Option 2 with ten years of guaranteed monthly payments. |
If on the Annuity Date (which may occur as early as age 90 or as late as age 100) your Contract Value is greater than zero, you must annuitize the Contract. We notify you of your available options in writing 60 days in advance, including the option to extend your Annuity Date if available. If on your Annuity Date you have not selected an Annuity Option, we make payments under Annuity Option 2 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. |
• | their portion of total Purchase Payments adjusted for withdrawals determined at the end of the Business Day we receive the first Valid Claim from any one Beneficiary, or |
• | their portion of the Contract Value determined at the end of the Business Day during which we receive his or her Valid Claim. |
• | If a Determining Life dies before you, we do not pay a death benefit to the Beneficiary(s) but we may increase the Contract Value if the Traditional Death Benefit is still in effect. At the end of the Business Day we receive due proof of a Determining Life’s death we increase the Contract Value to equal the total Purchase Payments adjusted for withdrawals if greater, and the Traditional Death Benefit ends. We allocate any Contract Value increase to the Allocation Options according to your Purchase Payment default instructions. |
• | Upon your death your Beneficiary(s) receive the Contract Value determined at the end of the Business Day during which we receive each Beneficiary’s Valid Claim. |
• | The Business Day before the Annuity Date. |
• | The Business Day that the total Purchase Payments adjusted for withdrawals and Contract Value are both zero. |
• | Upon the death of a Determining Life, the end of the Business Day we receive a Valid Claim from all Beneficiaries if you and the Determining Life are the same individuals, or if you and the Determining Life (Lives) are different individuals and die simultaneously as defined by applicable state law or regulation. |
• | Upon the death of a Determining Life, the end of the Business Day we receive due proof of the Determining Life’s death if you and the Determining Life (Lives) are different individuals and do not die simultaneously. |
• | Upon the death of an Owner (or Annuitant if the Owner is a non-individual), the end of the Business Day we receive the first Valid Claim from any one Beneficiary, if the Owner (or Annuitant) is no longer a Determining Life. |
• | The Business Day the Contract ends. |
We base the Traditional Death Benefit 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 Traditional Death Benefit is no longer available. Also, if you and the Determining Life (Lives) are different individuals and you die first, the Traditional Death Benefit is not available to your Beneficiary(s). |
• | For Contracts without the Index Protection NY Strategy: If you do not designate a death benefit payment option, a Beneficiary must select one of the options listed below. If no death benefit payment option is selected, we default payment to Option B. |
• | For Contract with the Index Protection NY Strategy: Each Beneficiary must select one of the death benefit payment options listed below. |
• | he or she becomes the new Owner and may exercise all of the Owner’s rights, including naming a new Beneficiary or Beneficiaries; |
• | he or she is subject to any remaining withdrawal charge; and |
• | upon the surviving spouse’s death their Beneficiary(s) receive the Contract Value determined at the end of the Business Day during which we receive a Valid Claim from each Beneficiary. |
Type of Contract | Persons and Entities that can buy the Contract |
IRA | Must have the same individual as Owner and Annuitant. |
Roth IRA | Must have the same individual as Owner and Annuitant. |
Simplified Employee Pension (SEP) IRA | Must have the same individual as Owner and Annuitant. |
Certain Code Section 401 Plans | A qualified retirement plan is the Owner and the Annuitant must be an individual. We may determine which types of qualified retirement plans are eligible to purchase this 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. |
• | Taxes on earnings are deferred until you take money out. Non-Qualified Contracts owned by corporations or partnerships do not receive income tax deferral on earnings. |
• | When you take money out of a Non-Qualified Contract, earnings are generally subject to federal income tax and applicable state income tax. All pre-tax money distributed from Qualified Contracts are subject to federal and state income tax, but qualified distributions from Roth IRA Contracts are not subject to federal income tax. This prospectus does not address specific state tax laws. You should discuss state taxation with your tax adviser. |
• | Taxable distributions are subject to an ordinary income tax rate, rather than a capital gains rate. |
• | Distributions from Non-Qualified Contracts are considered investment income for purposes of the Medicare tax on investment income. Thus, in certain circumstances, a 3.8% tax may apply to some or all of the taxable portion of distributions (e.g. earnings) to individuals whose income exceeds certain threshold amounts ($200,000 for filing single, $250,000 for married filing jointly and $125,000 for married filing separately.) Please consult a tax advisor for more information. |
• | If you take partial withdrawals from your Non-Qualified Contract, the withdrawals are generally taxed as though you were paid taxable earnings first, and then as a non-taxable return of Purchase Payments. |
• | If you annuitize your Non-Qualified Contract and receive a stream of Annuity Payments, you receive the benefit of the exclusion ratio. The exclusion ratio is a calculation that causes a portion of each Annuity Payment to be non-taxable, based upon the percentage of your Contract Value that is from Purchase Payments. Purchase Payments are treated as a non-taxable return of principal, whereas earnings are taxable. |
• | If you take partial withdrawals or annuitize a Qualified Contract, you will be responsible for determining what portion, if any, of the distribution consists of after-tax money. |
• | If you take out earnings before age 59 1⁄2, you may be subject to a 10% additional federal tax, unless you take a lifetime annuitization of your Contract or you take money out in a stream of substantially equal payments over your expected life in accordance with the requirements of the Code. |
• | A pledge, assignment, or ownership change of a Contract may be treated as a taxable event. You should discuss any pledge, assignment, or ownership change of a Contract with your tax adviser. |
• | If you purchase multiple non-qualified deferred annuity contracts from an affiliated group of companies in one calendar year, these contracts are treated as one contract for purposes of determining the tax consequences of any distribution. |
• | Death benefit proceeds from Non-Qualified Contracts are taxable to the beneficiary as ordinary income to the extent of any earnings. Death benefit proceeds must be paid out in accordance with the requirements of the Code. |
• | Depending upon the type of Qualified Contract you own, required minimum distributions (RMDs) must be satisfied when you reach a certain age. If you enroll in our minimum distribution program, we make RMD payments to you that are designed to meet this Contract’s RMD requirements. |
• | you might have to pay a withdrawal charge on your previous contract, |
• | there is a new withdrawal charge period for this Contract, |
• | other charges under this Contract may be higher (or lower), |
• | the benefits may be different, and |
• | you no longer have access to any benefits from your previous contract. |
• | overhead, |
• | legal fees, |
• | accounting fees, |
• | Financial Professional training, |
• | compensation for the ALFS management team, and |
• | other expenses associated with the Contracts. |
• | marketing services and increased access to their Financial Professionals; |
• | sales promotions relating to the Contracts; |
• | costs associated with sales conferences and educational seminars; |
• | the cost of client meetings and presentations; and |
• | other sales expenses incurred by them. |
• | issuance and maintenance of the Contracts, |
• | maintenance of Owner records, and |
• | routine customer service including: |
– | processing of Contract changes, |
– | processing withdrawal requests (both partial and total), and |
– | processing requests for fixed annuity payments. |
Name(1) | Title | Allocation Percentages |
Walter R. White | Chair and Chief Executive Officer | 5.00% |
William E. Gaumond | Chief Financial Officer and Treasurer | 5.00% |
(1) | Our three most highly paid executive officers other than our principal executive officer and principal financial officer are not included as NEOs for 2019 because their total compensation allocable to Allianz Life of New York did not exceed the $100,00 threshold established by SEC rules. |
• | providing total compensation opportunities that are competitive with the levels of total compensation available at the large diversified financial services companies with which Allianz Life most directly competes in the marketplace; |
• | setting performance metrics and objectives for variable compensation arrangements that reward executives for attaining both annual targets and medium-range and long-term business objectives, thereby providing individual executives with the opportunity to earn above-average compensation by achieving above-average results; |
• | establishing equity-based arrangements that align executives’ financial interests with those of Allianz SE by ensuring executives have a material financial stake in the equity value of Allianz SE and the business success of its affiliates; and |
• | structuring compensation packages and outcomes to foster internal pay equity. |
Compensation Element | Description | Objective |
Base Salary | Fixed rate of pay that compensates employees for fulfilling their basic job responsibilities. For NEOs, increases are generally provided in the case of a significant increase in responsibilities or a significant discrepancy versus the market. | Attract and retain high-caliber leadership. |
Annual Incentive Plan | Incentive compensation that promotes and rewards the achievement of annual performance objectives through awards under the Allianz Life Annual Incentive Plan (“AIP”). | • Link compensation to annual performance results. • Attract and motivate high-caliber leadership. • Align the interests of NEOs and our stockholder. |
Long-Term Incentives | Incentive compensation that promotes and rewards the achievement of long-term performance objectives through awards under the
Allianz Life Long-Term Performance Unit Plan (“ALTPUP”). Allianz Life’s Chief Executive Officer, Walter R. White, was eligible to receive annual awards through the Allianz SE Mid-Term Bonus Plan instead of the ALTPUP. |
• Link compensation to annual and multi-year performance results. • Motivate and retain high-caliber leadership with multi-year vesting. • 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 senior executive officers. | • Retain high-caliber leadership with multi-year vesting. • Align the interests of NEOs and our stockholder. |
Severance Arrangements | Severance payments to employees, including NEOs, under certain company-initiated termination events. | Compensate employees for situations where the employee’s employment is involuntarily terminated in a qualifying termination of employment. |
Perquisites-Benefits | Perquisites provided to our NEOs include employer matching contributions to the NEOs’ accounts in the 401(k) plan and may also include the payment of life insurance premiums, relocation reimbursements, and reimbursements for financial planning, tax preparation services, and spousal travel expenses. | Provide market competitive total compensation package. |
• | In general, establish the compensation philosophy and strategy of Allianz Life and oversee the development and implementation of compensation, benefit and perquisite programs for corporate executives consistent with the principles of ensuring that leadership is compensated effectively in a manner consistent with the stated compensation strategy, internal equity considerations, competitive practices, shareholder interests, and the requirements of any applicable regulatory bodies in order to attract and retain high-quality leadership. This responsibility includes periodic review of Allianz Life’s compensation programs to pursue certain goals, with the expectation that changes will be made periodically to ensure these goals are attained. |
• | Review and approve the establishment of, or material modification to, any executive incentive compensation plans or programs for Allianz Life. |
• | Review and approve any special benefits or perquisites in effect for, or offered to, any prospective, current or former Allianz Life employee, regardless of the employee’s level or assignment within Allianz Life. Such benefits and perquisites are those that are unusual or different than the benefits offered to all similarly-situated employees. |
• | Review and approve any employment agreements proposed to be made with any prospective or current employee of Allianz Life. |
• | Review and approve any individual severance agreement with any Allianz Life officer. This does not include an arrangement where the employee receives severance or incentive payments under existing terms of a broadbased benefit or compensation plan. |
• | Oversee Allianz Life’s compliance with regulations with respect to compensation matters and adopt and monitor adherence to global and local process requirements and timelines, including those required under the Corporate Rules (as defined under the Allianz Life Standard for Corporate Rules) mandated by Allianz SE. |
• | evaluating the compensation data from industry groups, national executive pay surveys and other sources for the NEOs and other executive officers as appropriate; |
• | gathering and correlating performance ratings and reviews for individual executive officers, including the NEOs; |
• | reviewing executive compensation recommendations against appropriate market data and for internal consistency and equity; and |
• | reporting to, and answering requests for information from, the Compensation Committee. |
• | reward the performance of participants who have made significant contributions to the achievement of annual goals and objectives; |
• | provide an incentive that will encourage future superior individual performance; and |
• | encourage the retention of employees who have demonstrated exceptional performance and/or are anticipated to significantly contribute to the long-term success of Allianz Life. |
• | reward the performance of participants who have made significant contributions to the achievement of their company’s annual goals and objectives, |
• | provide an incentive that will encourage future superior individual performance, and |
• | encourage the retention of employees who have demonstrated exceptional performance and/or are anticipated to significantly contribute to the long-term success of their company. |
Name and Principal Position (a) |
Year (b) |
Salary (c) |
Stock Awards (e)(1) |
Non-Equity Incentive Plan Compensation (g)(2),(3) |
All Other Compensation (i)(4) |
Total (j) |
Walter R. White Chair and Chief Executive Officer |
2019 | $43,255 | $54,069 | $108,138 | $1,313 | $206,775 |
William E. Gaumond Chief Financial Officer and Treasurer |
2019 | $22,761 | $17,276 | $30,933 | $1,107 | $72,077 |
Allianz SE share in the electronic cash market trading system Xetra (or any successor system) on the date of grant and the nine immediately preceding trading days, less the present value of dividends expected to be paid on one Allianz SE share over the vesting period, and less the fair value of the payout restrictions deriving from the vesting period and the payout cap. These numbers show the amount realized for financial reporting purposes as calculated in accordance with the FASB ASC Topic 718. Under FASB ASC Topic 718, the grant date fair value is calculated using the closing market price of the common stock of Allianz SE on the date of grant, which is then recognized over the requisite service period of the award. | |
(2) | Includes the following payments and grants made pursuant to the AIP and the ALTPUP. |
Name | Year | Payments made pursuant to the AIP |
Grants made pursuant to the ALTPUP |
Walter R. White | 2019 | $54,069 | $54,069 |
William E. Gaumond | 2019 | $17,276 | $13,657 |
(3) | Walter R. White, as Chair and Chief Executive Officer, participates in the global Allianz SE Mid-Term Bonus Program rather than the ALTPUP. |
(4) | The following table provides additional details regarding compensation found in the “All Other Compensation” column. |
Name | Year | Spousal Travel(5) |
Milestone/ Anniversary/ Recognition(6) |
Life Insurance Premiums |
Employer Match to 401(k) Plan |
ASAAP Contribution(7) |
Total |
Walter R. White | 2019 | $218 | -- | $46 | $1,050 | -- | $1,313 |
William E. Gaumond | 2019 | -- | $24 | $33 | $950 | $100 | $1,107 |
(5) | Represents reimbursement or payments made to defray the costs of a spouse’s travel. |
(6) | Represents Milestone Anniversary Program, which pays a bonus at three and five year anniversaries, and then every five years thereafter. |
(7) | Represents company matching contribution to the Allianz Supplemental Asset Accumulation Plan for deferrals in excess of IRS compensation limit. |
Name (a) |
Grant Date (b) |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1),(2) | Estimated Future Payouts Under Equity Incentive Plan Awards(3),(4) | ||||
Threshold ($) (c) |
Target ($) (d) |
Maximum ($) (e) |
Threshold ($) (f) |
Target ($) (g) |
Maximum ($) (h) |
||
Walter R. White | 3/6/2020 | ||||||
RSUs (under AEI) | $0 | $43,255 | $214,112 | ||||
AIP Award | $0 | $43,255 | $71,371 | ||||
Midterm Bonus Plan | $0 | $43,255 | $71,371 | ||||
William E. Gaumond | 3/6/2020 | ||||||
RSUs (under AEI) | $0 | $13,657 | $67,601 | ||||
AIP Award | $0 | $13,657 | $27,314 | ||||
ALTPUP Award | $0 | $13,657 | $27,314 |
(1) | The target and maximum columns show the target award and maximum award for 2019 for each NEO under the AIP. There is no threshold amount for any participant in the AIP. The actual 2019 awards granted to the NEOs are listed in the Non-Equity Incentive Compensation column of the Summary Compensation Table. AIP target and maximum awards are a pre-designated percentage of base salary determined at the executive’s level. |
(2) | The target and maximum columns show the target award and maximum award for 2019 for each NEO under the ALTPUP. Under the ALTPUP, all awards are discretionary. To the extent that awards are made, the minimum amount of an award will equal at least 50% of the target amount as determined by the Compensation Committee (or with respect to “principal officers” for purposes of the NEC Committee’s duties, the NEC Committee with final approval of Allianz Life's Board). The actual 2019 awards granted to the NEOs are listed in the Non-Equity Incentive Compensation column of the Summary Compensation Table. ALTPUP target and maximum awards are a pre-designated percentage of base salary determined at the executive’s level. |
(3) | RSUs have a vesting schedule as disclosed in the footnotes to the Summary Compensation Table. See “Outstanding Equity Awards at December 31, 2019” for disclosure regarding the number of RSUs that are unvested as of December 31, 2019. |
(4) | The target and maximum columns show the target award and maximum award for 2019 for each NEO under the AEI. There is no threshold amount for any participant in the AEI. The actual 2019 awards granted to the NEOs are listed in the Stock Awards column of the Summary Compensation Table. |
Name (a) |
RSUs | |
Number of RSUs That Have Not Vested (g)(1),(2) |
Market Value of RSUs That Have Not Vested (h)(3) |
|
Walter R. White | ||
504.850 | $124,688 | |
408.050 | $100,780 | |
351.500 | $86,813 | |
261.950 | $64,696 | |
William E. Gaumond | ||
36.050 | $8,904 | |
72.600 | $17,931 | |
101.950 | $25,180 | |
76.900 | $18,993 |
(1) | Represents unvested RSUs issued pursuant to the AEI. RSUs issued under the AEI during 2019 are subject to a four-year vesting period from the grant date. At the end of the respective vesting period, the RSUs are exercised uniformly for all participants, provided they remain employed by Allianz Life or terminate after retirement or early retirement eligibility, or under certain other circumstances. Vesting and exercise may accelerate if a participant leaves employment under other “good leaver” circumstances set forth in the AEI. |
(2) | For each of the NEOs, the number of RSUs listed on the first line were exercised in 2020, the RSUs listed on the second line will exercise in 2021, the RSUs listed on the third line will exercise in 2022, and the RSUs listed on the fourth line will exercise in 2023. |
(3) | Based on an assumed stock price of $246.98 per share, which was the arithmetic average of the closing prices of an Allianz SE share in the electronic cash market trading system Xetra (or any successor system) on December 31, 2019 and the nine immediately preceding trading days, converted from Euros into U.S. dollars. |
Name | Stock Awards | |
Number of Shares Acquired on Vesting (#) |
Value Realized on Vesting ($)(1) |
|
Walter R. White | 318.200 | $69,966 |
William E. Gaumond | 33.950 | $7,465 |
(1) | Represents Allianz SE RSUs that were exercised during 2019 pursuant to the AEI. Amounts realized were paid in cash. |
(1) | Mr. White is not eligible to receive payments pursuant to the Executive Severance Plan. See “Allianz Life Executive Severance Agreement” for information regarding severance payments that Mr. White is eligible to receive upon termination of service. |
Name (a) |
Fees Earned or Paid in Cash ($)(1) (b) |
Total ($) (h) |
Walter R. White(2) Chair and Chief Executive Officer |
N/A | N/A |
William E. Gaumond(2) Chief Financial Officer and Treasurer |
N/A | N/A |
Eric J. Thomes(3) President |
N/A | N/A |
Steven J. Thiel(2) Vice President, Appointed Actuary |
N/A | N/A |
Lorraine Lods(2) Non-Independent Director |
N/A | N/A |
Ronald M. Clark Independent Director |
$20,000 | $20,000 |
Martha Clark Goss(4) Independent Director |
$25,000 | $25,000 |
Stephen R. Herbert(4) Independent Director |
$10,000 | $10,000 |
Gary A. Smith Non-Independent Director |
$20,000 | $20,000 |
Kevin E. Walker(4) Independent Director |
$20,000 | $20,000 |
(1) | Represents cash compensation provided to our independent directors for the year ended December 31, 2019. |
(2) | As inside directors, Messrs. White, Gaumond, Thomes, Thiel, and Ms. Lods do not receive any compensation for their service as directors. The compensation Messrs. White and Gaumond received as executive officers of Allianz Life of New York is disclosed in the Summary Compensation Table as set forth herein. |
(3) | Thomas Burns resigned his position as President on March 31, 2019, and was replaced April 1, 2019, by Mr. Thomes who also was elected to the Board as of that date. Mr. Burns received no compensation for his service as a director of Allianz Life of New York. |
(4) | Mr. Herbert resigned his position as Director on April 10, 2019. Mr. Herbert’s Audit and Evaluation Committee Chair and Conflict of Interest Committee positions were replaced with Ms. Goss on April 10, 2019. Mr. Herbert’s Executive Committee and Audit and Evaluation Committee positions were replaced with Mr. Walker on April 10, 2019. |
• | Difficult Economic Conditions. Our financial condition is materially affected by conditions in the global capital markets and the economy generally. During an economic downturn, the demand for our financial insurance products and services could be adversely affected. In addition, an economic downturn could cause the number and amount of surrenders and withdrawals under our insurance products to increase significantly, and owners of our insurance products may choose to defer making purchase payments or paying insurance premiums or stop them altogether. |
• | Unfavorable Interest Rate Environments. During periods of declining interest rates, we may experience financial losses as the spread between interest rates that we credit to customers under our insurance products and returns on our investments tighten. During periods of increasing interest rates, we may experience financial losses due to increases in surrenders and withdrawals under our insurance products as our customers choose to forgo insurance protection in favor of potentially higher returns. Although we take measures to manage economic risks associated with different interest rate environments, we may not be able to fully mitigate those risks. |
• | Losses on Fixed Maturity Investments. Our fixed maturity investments are subject to interest rate risk and credit risk. Interest rate risk refers to how the values of our fixed maturity investments fluctuate in response to changes in market interest rates. Increases and decreases in prevailing interest rates generally result in decreases and increases, respectively, in the values of our fixed maturity investments. Credit risk refers to the risk that a counterparty will default on its commitments to us under a fixed maturity investment. See “Defaults by Counterparties” below. |
• | Losses on Equity Investments. Our equity investments are generally valued based on quoted market prices and are subject to market risk. Market risk refers to how market prices for equity investments are subject to fluctuation. A downward fluctuation in the market price for an equity investment could result in losses upon the sale of that investment. Fluctuations in market prices may result from, among other things, actual or perceived changes in the attractiveness of specific investments or in general market conditions. |
• | Losses on Real Estate Investments. A portion of our investment portfolio consists of mortgage loans and mortgage-backed securities related to commercial, agricultural and residential real estate. The value of our real estate investments may be negatively impacted by general economic conditions in the real estate sector, including supply and demand, market volatility, and interest rate fluctuations, as well as the creditworthiness of obligors. |
• | Losses upon the Sale of Illiquid Investments. We hold certain investments that may lack liquidity, such as privately placed fixed maturity investments, mortgage loans, collateralized debt obligations, commercial mortgage-backed securities, equity real estate and limited partnership interests. Although we seek to minimize the likelihood that we would need to sell illiquid investments, if we were required to liquidate these investments on short notice, we may have difficulty doing so and may be forced to sell them for less than their fair value. |
• | Loss of Market Share to Competitors. There is strong competition among insurers, banks, brokerage firms and other financial institutions and providers seeking clients for the types of products and services that we provide. A loss of market share to our competitors could result in financial losses to our business. Our ability to successfully compete is dependent on numerous factors, some of which include the successful implementation of our business strategy, our financial strength, the attractiveness of our products and services, our relationships with distributors, and our reputation. Our ability to compete may also be hindered if our competitors obtain or seek to enforce intellectual property rights against us, or if we are otherwise precluded from offering products or services that are in demand. Our ability to compete may also be hindered if we are not able to protect or enforce our own intellectual property rights. |
• | Defaults by Counterparties. Third-parties that owe us money, securities, or other assets may not fulfill their obligations to us. These parties may include issuers of investments that we may hold, borrowers under loans that we may hold or extend, counterparties under swap and other derivative contracts and other third-parties (e.g., customers, trading counterparties, brokers, dealers, banks, investment funds, clearing agents, exchanges and clearing houses). In addition, with respect to secured transactions, the risk of default may be exacerbated when the collateral held by us cannot be liquidated or is liquidated at a price that is not sufficient to cover the full amount owed to us. A party may default on its obligations for a variety of reasons, including bankruptcy, lack of liquidity, downturns in the economy or real estate market and operational failure. General economic conditions and trends may also result in increased defaults. |
• | Impairments of Other Financial Institutions. We routinely execute transactions with counterparties in the financial services industry, including brokers, dealers, commercial banks, investment banks, insurers, reinsurers and other investment and financial institutions. A disruption to, or decline in the financial condition of, such financial institutions may expose us to financial losses. |
• | Payments through Guaranty Associations. When an insurance company becomes insolvent, state insurance guaranty associations have the right to assess other insurance companies doing business in their state for funds to pay obligations to policyholders of the insolvent company, up to the state-specified limit of coverage. The future failure of a large life, health or annuity insurer could trigger assessments which we would be obligated to pay. Further, amounts for historical insolvencies may be assessed over many years, and there can be significant uncertainty around the total obligation for a given insolvency. |
• | Ineffectiveness of Risk Management Policies. Our risk management policies and procedures intended to identify, monitor and manage economic risks may not be fully effective at mitigating our risk exposure in all market environments or against all types of risk. This could cause us to incur investment losses or cause our hedging and other risk management strategies to be ineffective. |
• | reductions in new sales of insurance products, annuities and other investment products; |
• | increases in our cost of capital or limitations on our access to sources of capital; |
• | harm to our relationships with distributors and sales specialists; |
• | material increases in the number or amount of surrenders and withdrawals under our insurance products; |
• | pressure on us to reduce prices or increase crediting rates for many of our insurance products; and |
• | harm to our ability to obtain reinsurance or obtain reasonable pricing for reinsurance. |
• | training and educating our employees regarding our obligations relating to confidential information; |
• | monitoring changes in state or federal privacy and compliance requirements; |
• | drafting appropriate contractual provisions into any contract that raises proprietary and confidentiality issues; |
• | maintaining secure storage facilities for tangible records; |
• | limiting access to electronic information; and |
• | in the event of a security breach, providing credit monitoring or other services to affected customers. |
• | From you, either directly or through our financial professionals. This may include information provided on your insurance application or other forms you may complete. The information we collect includes, but is not limited to, your name, social security number, address, telephone number and e-mail address. |
• | From others, through the process of issuing a policy or handling a claim. This may include information from consumer reporting agencies and medical or accident reports. |
• | From your doctor or during a home visit by a health care professional. This may include your health records gathered with your written consent. |
• | From your relationship with us. For example, this may include the number of years you have been a customer or the types of products you have purchased. |
• | From data brokers that collect publicly available information about you. This includes household information, financial transactions, and social media activity. |
• | With people and entities when we have your consent to share your information. |
• | With our affiliates and other third parties in order to process your application, or administer or service your policy. |
• | With consumer reporting agencies to obtain a medical report, credit report, or motor vehicle report. These reports are used to decide eligibility for a policy or to process transactions you request. |
• | With our financial professionals so that they can service your policy. They may also inform you of other Allianz Life of NY products and services that may be of interest to you. |
• | With health care providers in order to process your claim. |
• | As required or otherwise permitted by law. This may include sharing information with state insurance agencies, law enforcement, and other government officials. We may also share your information to respond to subpoenas, court orders and other legal requests. |
• | With research groups to conduct studies on our business to improve the products and services we offer. |
• | To inform you of products and services that may be of interest to you. These communications may be made by us, our financial professionals, or through third parties. |
• | With our affiliates so they can market their products and services to you. State insurance laws do not allow you to restrict this disclosure. |
Allianz Life as Custodian
|
3 |
Legal Opinions
|
3 |
Distributor
|
3 |
Administrative Service Fees
|
3 |
Federal Tax Status
|
4 |
Annuity Contracts in General
|
4 |
Taxation of Annuities in General
|
4 |
Qualified Contracts
|
4 |
Purchasing a Qualified Contract
|
6 |
Distributions-Qualified Contracts
|
6 |
Distributions-Non-Qualified Contracts
|
9 |
Required Distributions
|
9 |
Diversification
|
10 |
Owner Control
|
10 |
Contracts Owned by Non-Individuals
|
10 |
Annuity Purchases by Nonresident Aliens and Foreign Corporations
|
10 |
Income Tax Withholding
|
10 |
Multiple Contracts
|
11 |
Partial 1035 Exchanges
|
11 |
Assignments, Pledges and Gratuitous Transfers
|
11 |
Death Benefits
|
11 |
Spousal Continuation and the Federal Defense of Marriage Act (DOMA)
|
11 |
Federal Estate Taxes
|
12 |
Generation-Skipping Transfer Tax
|
12 |
Foreign Tax Credits
|
12 |
Possible Tax Law Changes
|
12 |
Annuity Payments
|
13 |
Annuity Payment Options
|
13 |
Appendix – Death of the Owner and/or Annuitant
|
14 |
• | have any responsibility or liability for the administration, management or marketing of Allianz Life of NY products. |
• | consider the needs of Allianz Life of NY products or the owners of Allianz Life of NY products in determining, composing or calculating the EURO STOXX 50 or have any obligation to do so. |
• | STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, express or implied, and exclude any liability about: |
• | The results to be obtained by Allianz Life of NY products, the owner of Allianz Life of NY products or any other person in connection with the use of the EURO STOXX 50 and the data included in the EURO STOXX 50; |
• | The accuracy, timeliness, and completeness of the EURO STOXX 50 and its data; |
• | The merchantability and the fitness for a particular purpose or use of the EURO STOXX 50 and its data; |
• | The performance of Allianz Life of NY products generally; |
• | STOXX, Deutsche Börse Group and their licensors, research partners or data providers give no warranty and exclude any liability, for any errors, omissions or interruptions in the EURO STOXX 50 or its data; |
• | Under no circumstances will STOXX, Deutsche Börse Group or their licensors, research partners or data providers be liable (whether in negligence or otherwise) for any lost profits or indirect, punitive, special or consequential damages or losses, arising as a result of such errors, omissions or interruptions in the EURO STOXX 50 or its data or generally in relation to Allianz Life of NY products, even in circumstances where STOXX, Deutsche Börse Group or their licensors, research partners or data providers are aware that such loss or damage may occur. |
(i) | any Index gains during the Index Year subject to the Cap, |
(ii) | any Index losses greater than the Buffer, and |
(iii) | the number of days until the next Index Anniversary. |
(a) | change in Proxy Value = (current Proxy Value – beginning Proxy Value) |
(b) | proxy interest = beginning Proxy Value x (1 – time remaining during the Index Year) |
The Index Protection NY Strategy first became available to newly issued Contracts on August 24, 2015. It is not available to Contracts issued before August 24, 2015, or that have a Contract number starting with GAZ. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | ||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||
Initial Caps | 4.00% | 5.75% | 4.75% | 7.00% | 3.50% | 6.00% | 4.75% | 6.50% | ||||||||
1st Anniversary Renewal Caps | 4.75% | 5.50% | 5.25% | 6.25% | 4.50% | 5.25% | 5.25% | 6.25% | ||||||||
2nd Anniversary Renewal Caps | 4.00% | 5.00% | 4.25% | 5.75% | 4.00% | 5.00% | 5.75% | 7.25% | ||||||||
3rd Anniversary Renewal Caps | 5.25% | 5.75% | 5.25% | 6.00% | 5.50% | 6.50% | 8.75% | 8.75% | ||||||||
4th Anniversary Renewal Caps | 5.25% | 6.00% | 5.50% | 6.25% | 5.25% | 6.25% | 8.25% | 9.25% |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | ||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||
Initial Caps | 4.75% | 6.00% | 5.25% | 6.75% | 4.50% | 5.50% | 5.25% | 6.75% | ||||||||
1st Anniversary Renewal Caps | 4.00% | 5.00% | 4.25% | 5.75% | 4.00% | 5.00% | 5.25% | 7.25% | ||||||||
2nd Anniversary Renewal Caps | 4.50% | 6.00% | 5.25% | 6.50% | 5.00% | 6.50% | 7.00% | 9.25% | ||||||||
3rd Anniversary Renewal Caps | 5.25% | 6.00% | 5.50% | 6.25% | 5.25% | 6.25% | 8.25% | 10.00% |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | ||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||
Initial Caps | 4.25% | 5.75% | 5.00% | 6.50% | 4.25% | 5.50% | 5.25% | 7.00% | ||||||||
1st Anniversary Renewal Caps | 4.50% | 6.25% | 5.25% | 6.50% | 5.00% | 6.75% | 7.00% | 10.00% | ||||||||
2nd Anniversary Renewal Caps | 5.25% | 6.75% | 5.50% | 6.75% | 5.50% | 7.00% | 8.25% | 10.25% |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | ||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||
Initial Caps | 4.75% | 7.50% | 5.50% | 7.75% | 5.00% | 8.00% | 7.00% | 15.75% | ||||||||
1st Anniversary Renewal Caps | 5.25% | 6.75% | 5.50% | 7.00% | 5.50% | 7.00% | 8.50% | 12.75% |
The Index Performance Strategy with the EURO STOXX 50® first became available to newly issued Contracts on August 24, 2015. It is not available issued before August 24, 2015, or that have a Contract number starting with GAZ. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | |||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||
Initial Caps | 12.50% | 13.50% | 14.75% | 15.75% | 11.75% | 13.00% | ||||||
1st Anniversary Renewal Caps | 10.50% | 15.50% | 13.50% | 17.50% | 9.75% | 15.25% | ||||||
2nd Anniversary Renewal Caps | 10.75% | 13.25% | 13.75% | 16.50% | 10.75% | 13.00% | ||||||
3rd Anniversary Renewal Caps | 9.25% | 10.25% | 12.00% | 14.25% | 10.00% | 11.00% | ||||||
4th Anniversary Renewal Caps | 10.50% | 12.00% | 11.00% | 13.00% | 11.75% | 14.25% | ||||||
5th Anniversary Renewal Caps | 10.50% | 13.25% | 12.25% | 14.75% | 11.50% | 14.25% |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | ||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||
Initial Caps1 | 10.50% | 15.50% | 13.25% | 17.50% | 9.75% | 15.25% | 13.50% | 17.50% | ||||||||
1st Anniversary Renewal Caps2 | 10.75% | 15.50% | 13.75% | 18.50% | 10.75% | 15.00% | 13.75% | 16.50% | ||||||||
2nd Anniversary Renewal Caps3 | 9.25% | 12.00% | 12.00% | 16.50% | 9.50% | 12.00% | 22.00% | 25.00% | ||||||||
3rd Anniversary Renewal Caps4 | 9.25% | 13.75% | 11.00% | 14.50% | 10.75% | 15.50% | 24.00% | 25.00% | ||||||||
4th Anniversary Renewal Caps5 | 10.50% | 13.25% | 12.00% | 14.75% | 11.50% | 15.00% | 25.00% | 26.50% |
1 | The initial Caps for the EURO STOXX 50® are for a partial period of August 24, 2015 through January 4, 2016. |
2 | The 1st Anniversary Renewal Caps for the EURO STOXX 50® are for a partial period of August 24, 2016 through January 4, 2017. |
3 | The 2nd Anniversary Renewal Caps for the EURO STOXX 50® are for a partial period of August 24, 2017 through January 4, 2018. |
4 | The 3rd Anniversary Renewal Caps for the EURO STOXX 50® are for a partial period of August 24, 2018 through January 4, 2019. |
5 | The 4th Anniversary Renewal Caps for the EURO STOXX 50® are for a partial period of August 24, 2019 through January 4, 2020. |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | ||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||
Initial Caps | 10.75% | 15.50% | 13.75% | 18.50% | 10.75% | 15.00% | 13.75% | 18.50% | ||||||||
1st Anniversary Renewal Caps | 9.25% | 12.00% | 12.00% | 16.50% | 9.50% | 12.00% | 13.50% | 25.00% | ||||||||
2nd Anniversary Renewal Caps | 9.25% | 13.75% | 11.00% | 14.50% | 10.75% | 15.50% | 24.00% | 28.00% | ||||||||
3rd Anniversary Renewal Caps | 10.50% | 13.25% | 12.00% | 14.75% | 11.50% | 15.00% | 25.00% | 28.00% |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | ||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||
Initial Caps | 9.75% | 14.50% | 13.50% | 18.50% | 10.00% | 14.00% | 13.50% | 25.50% | ||||||||
1st Anniversary Renewal Caps | 9.25% | 17.00% | 12.00% | 17.25% | 10.75% | 17.75% | 24.00% | 31.00% | ||||||||
2nd Anniversary Renewal Caps | 10.75% | 17.75% | 12.00% | 18.00% | 11.50% | 17.75% | 25.50% | 31.00% |
Indexes: | S&P 500® Index | Russell 2000® Index | Nasdaq-100® Index | EURO STOXX 50® | ||||||||||||
Caps | Lowest | Highest | Lowest | Highest | Lowest | Highest | Lowest | Highest | ||||||||
Initial Caps | 11.50% | 16.25% | 14.25% | 16.75% | 12.00% | 17.00% | 24.00% | 28.00% | ||||||||
1st Anniversary Renewal Caps | 12.50% | 16.00% | 13.50% | 17.75% | 12.25% | 16.50% | 26.25% | 28.00% |
The Index Protection NY Strategy was not available before August 24, 2015. The Buffer was 30% for all time periods. It is not available to Contracts issued before August 24, 2015 or that have a Contract number starting with GAZ. |
Index Effective Date | 8/24/2015- 8/28/2015 |
9/1/2015- 10/5/2015 |
10/6/2015- 11/2/2015 |
11/3/2015- 11/30/2015 |
12/1/2015- 1/4/2016 |
1/5/2016- 2/1/2016 |
2/2/2016- 2/29/2016 |
|||||||
Initial Cap | 4.25% | 4.00% | 5.50% | 5.75% | 5.50% | 5.00% | 5.25% | |||||||
1st Index Year Index Return | 9.63% to 16.32% |
7.21% to 15.39% |
-0.29% to 9.13% |
-1.00% to 6.98% |
4.21% to 12.82% |
12.51% to 22.44% |
19.69% to 27.29% |
|||||||
1st Index Anniversary Credit | 4.25% | 4.00% | 0% to 5.50% |
0% to 5.75% |
4.21% to 5.50% |
5.00% | 5.25% | |||||||
1st Anniversary Renewal Cap | 5.50% | 4.75% | 4.75% | 4.75% | 4.75% | 4.50% | 4.50% | |||||||
2nd Index Year Index Return | 12.10% to 12.69% |
12.76% to 18.17% |
17.61% to 22.97% |
17.47% to 24.26% |
17.65% to 20.59% |
20.67% to 25.11% |
12.48% to 21.10% |
|||||||
2nd Index Anniversary Credit | 5.50% | 4.75% | 4.75% | 4.75% | 4.75% | 4.50% | 4.50% | |||||||
2nd Anniversary Renewal Cap | 4.75% | 4.50% | 4.75% | 4.00% | 5.00% | 4.75% | 4.50% | |||||||
3rd Index Year Index Return | 17.86% to 18.57% |
13.07% to 17.16% |
2.33% to 13.35% |
1.37% to 7.60% |
-12.38% to 5.72% |
-7.97% to -4.09% |
-1.35% to 4.92% |
|||||||
3rd Index Anniversary Credit | 4.75% | 4.50% | 2.33% to 4.75% |
1.37% to 4.00% |
0% to 5.00% |
0% | 0% to 4.50% |
|||||||
3rd Anniversary Renewal Cap | 5.25% | 5.25% | 5.25% | 5.50% | 5.75% | |||||||||
4th Index Year Index Return | -0.95% to 0.13% |
-1.23% to 4.05% |
0.30% to 15.08% |
11.00% to 19.03% |
10.85% to 37.13% |
|||||||||
4th Index Anniversary Credit | 0% to 0.13% |
0% to 4.05% |
0.30% to 5.25% |
5.50% | 5.75% |
Index Effective Date | 3/1/2016- 4/4/2016 |
4/5/2016- 5/2/2016 |
5/3/2016- 6/6/2016 |
6/7/2016- 7/4/2016 |
7/5/2016- 8/1/2016 |
8/2/2016- 9/5/2016 |
||||||
Initial Cap | 6.00% | 6.00% | 5.50% | 5.00% | 5.50% | 5.50% | ||||||
1st Index Year Index Return | 13.80% to 21.11% |
11.30% to 15.36% |
15.09% to 17.38% |
14.85% to 20.94% |
13.49% to 16.47% |
10.91% to 14.86% |
||||||
1st Index Anniversary Credit | 6.00% | 6.00% | 5.50% | 5.00% | 5.50% | 5.50% | ||||||
1st Anniversary Renewal Cap | 4.25% | 4.25% | 4.75% | 4.75% | 4.75% | 4.75% | ||||||
2nd Index Year Index Return | 9.46% to 17.83% |
10.23% to 15.65% |
10.12% to 15.40% |
11.29% to 14.51% |
12.50% to 14.89% |
14.11% to 18.57% |
||||||
2nd Index Anniversary Credit | 4.25% | 4.25% | 4.75% | 4.75% | 4.75% | 4.75% | ||||||
2nd Anniversary Renewal Cap | 5.50% | 5.50% | 6.00% | 5.50% | 5.25% | 5.25% | ||||||
3rd Index Year Index Return | -0.12% to 11.05% |
7.25% to 11.18% |
-0.09% to 12.01% |
3.72% to 10.42% |
4.98% to 9.27% |
-0.63% to 3.71% |
||||||
3rd Index Anniversary Credit | 0% to 5.50% |
5.50% | 0% to 6.00% |
3.72% to 5.50% |
4.98% to 5.25% |
0% to 3.71% |
Index Effective Date | 7/1/2014- 8/4/2014 |
8/5/2014- 9/1/2014 |
9/2/2014- 10/6/2014 |
10/7/2014- 11/3/2014 |
11/4/2014- 12/1/2014 |
12/2/2014- 1/5/2015 |
1/6/2015- 2/2/2015 |
|||||||
Initial Cap | 13.00% | 12.75% | 12.75% | 12.50% | 13.50% | 12.75% | 11.75% | |||||||
1st Index Year Index Return | 3.98% to 8.98% |
-6.52% to 9.35% |
-5.10% to 0.97% |
2.26% to 9.15% |
-0.80% to 4.48% |
-2.70% to 5.09% |
-8.52% to -0.62% |
|||||||
1st Index Anniversary Credit | 3.98% to 8.98% |
0% to 9.35% |
0% to 0.97% |
2.26% to 9.15% |
0% to 4.48% |
0% to 5.09% |
0% | |||||||
1st Anniversary Renewal Cap | 10.50% | 10.75% | 10.50% | 13.50% | 15.50% | 13.50% | 12.50% | |||||||
2nd Index Year Index Return | 0.80% to 4.88% |
3.65% to 16.32% |
7.21% to 14.05% |
-1.00% to 7.91% |
-0.81% to 6.98% |
5.40% to 12.81% |
14.41% to 22.16% |
|||||||
2nd Index Anniversary Credit | 0.80% to 4.88% |
3.65% to 10.75% |
7.21% to 10.50% |
0% to 7.91% |
0% to 6.98% |
5.40% to 12.81% |
12.50% | |||||||
2nd Anniversary Renewal Cap | 13.25% | 13.00% | 11.25% | 10.75% | 11.00% | 11.25% | 10.75% | |||||||
3rd Index Year Index Return | 13.49% to 15.60% |
10.91% to 14.08% |
12.75% to 17.98% |
17.61% to 23.90% |
17.47% to 24.26% |
17.72% to 20.90% |
20.67% to 25.34% |
|||||||
3rd Index Anniversary Credit | 13.25% | 10.91% to 13.00% |
11.25% | 10.75% | 11.00% | 11.25% | 10.75% | |||||||
3rd Anniversary Renewal Cap | 10.25% | 10.00% | 9.25% | 9.75% | 9.50% | 9.50% | 9.75% | |||||||
4th Index Year Index Return | 11.70% to 15.09% |
14.35% to 18.57% |
13.14% to 17.53% |
2.33% to 13.35% |
1.96% to 8.62% |
-12.38% to 5.72% |
-7.97% to -1.35% |
|||||||
4th Index Anniversary Credit | 10.25% | 10.00% | 9.25% | 2.33% to 9.75% |
1.96% to 8.62% |
-2.38% to 5.72% |
0% | |||||||
4th Anniversary Renewal Cap | 10.75% | 10.75% | 10.50% | 10.75% | 10.50% | 12.00% | ||||||||
5th Index Year Index Return | -0.20% to 10.42% |
-0.95% to 3.70% |
-1.23% to 4.18% |
0.30% to 15.08% |
9.64% to 17.66% |
10.85% to 37.13% |
||||||||
5th Index Anniversary Credit | 0% to 10.42% |
0% to 3.70% |
0% to 4.18% |
0.30% to 10.75% |
9.64% to 10.50% |
10.85% to 12.00% |
Index Effective Date | 2/3/2015- 3/2/2015 |
3/3/2015- 4/6/2015 |
4/7/2015- 5/4/2015 |
5/5/2015- 6/1/2015 |
6/2/2015- 7/6/2015 |
|||||
Initial Cap | 12.00% | 11.75% | 11.00% | 11.00% | 10.75% | |||||
1st Index Year Index Return | -11.58% to -6.17% |
-5.43% to 0.64% |
-3.00% to 0.63% |
-4.13% to -0.59% |
-4.84% to 1.92% |
|||||
1st Index Anniversary Credit | -1.58% to 0.00% |
0% to 0.64% |
0% to 0.63% |
0% | 0% to 1.92% |
|||||
1st Anniversary Renewal Cap | 13.25% | 15.50% | 15.50% | 13.75% | 12.50% | |||||
2nd Index Year Index Return | 19.69% to 27.29% |
13.80% to 19.55% |
11.82% to 16.50% |
15.09% to 17.38% |
14.76% to 21.92% |
|||||
2nd Index Anniversary Credit | 13.25% | 13.80% to 15.50% |
11.82% to 15.50% |
13.75% | 12.50% | |||||
2nd Anniversary Renewal Cap | 10.25% | 12.00% | 12.00% | 10.50% | 10.25% | |||||
3rd Index Year Index Return | 12.99% to 17.56% |
9.46% to 17.83% |
10.86% to 15.21% |
11.36% to 14.75% |
11.40% to 14.71% |
|||||
3rd Index Anniversary Credit | 10.25% | 9.46% to 12.00% |
10.86% to 12.00% |
10.50% | 10.25% | |||||
3rd Anniversary Renewal Cap | 9.25% | 12.00% | 11.50% | 13.75% | 11.75% | |||||
4th Index Year Index Return | 0.51% to 3.77% |
-0.12% to 11.18% |
7.17% to 11.14% |
0.36% to 9.72% |
-0.09% to 10.42% |
|||||
4th Index Anniversary Credit | 0.51% to 3.77% |
0% to 11.18% |
7.17% to 11.14% |
0.36% to 9.72% |
0% to 10.42% |
Crediting Method / Indexes | Availability Restrictions: | |
Index Protection NY Strategy | – For Contracts with a number starting with AV this first became available to newly issued Contracts on August 24, 2015. – Not available to Contracts issued before August 24, 2015, or if the Contract has a number starting with GAZ. |
|
EURO STOXX 50® | – For Contracts with a number starting with AV this first became available to newly issued Contracts on August 24, 2015. – Not available to Contracts issued before August 24, 2015, or if the Contract has a number starting with GAZ. |
|
|
Year ended December 31,
|
||||||||||||||
Selected income data
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||
Premium and annuity considerations*
|
|
$
|
376,919
|
|
|
306,832
|
|
|
275,425
|
|
|
250,086
|
|
|
281,769
|
|
Net investment income
|
|
19,866
|
|
|
23,273
|
|
|
34,421
|
|
|
42,598
|
|
|
42,237
|
|
|
Ceded reinsurance reserve and expense adjustments
|
|
181
|
|
|
201
|
|
|
211
|
|
|
225
|
|
|
225
|
|
|
Fees from separate accounts
|
|
68,960
|
|
|
72,602
|
|
|
74,868
|
|
|
73,612
|
|
|
71,227
|
|
|
Other income
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
Total income
|
|
465,926
|
|
|
402,908
|
|
|
384,949
|
|
|
366,521
|
|
|
395,458
|
|
|
Policyholder benefits and surrenders
|
|
255,885
|
|
|
246,712
|
|
|
240,015
|
|
|
173,282
|
|
|
193,224
|
|
|
Change in aggregate reserves
|
|
2,503
|
|
|
(35,379
|
)
|
|
4,740
|
|
|
(9,455
|
)
|
|
(60,190
|
)
|
|
General and administrative and commission
|
|
52,630
|
|
|
43,506
|
|
|
41,569
|
|
|
40,116
|
|
|
42,055
|
|
|
Net transfers to separate accounts
|
|
134,980
|
|
|
107,721
|
|
|
60,857
|
|
|
104,150
|
|
|
162,679
|
|
|
Total benefits and other expenses
|
|
445,998
|
|
|
362,560
|
|
|
347,181
|
|
|
308,093
|
|
|
337,768
|
|
|
Income tax (benefit) expense
|
|
(7,343
|
)
|
|
(292
|
)
|
|
3,333
|
|
|
104
|
|
|
11,673
|
|
|
Net realized capital (loss) gain
|
|
(70,095
|
)
|
|
7,217
|
|
|
(39,732
|
)
|
|
(48,008
|
)
|
|
(11,734
|
)
|
|
Net (loss) income
|
|
$
|
(42,824
|
)
|
|
47,857
|
|
|
(5,297
|
)
|
|
10,316
|
|
|
34,283
|
|
Capital and Surplus:
|
|
|
|
|
|
|
|
|
|
|
||||||
Change in unrealized capital (loss) gain
|
|
$
|
(8,937
|
)
|
|
18,410
|
|
|
(21,209
|
)
|
|
(5,276
|
)
|
|
5,942
|
|
Other change in capital & surplus
|
|
$
|
(649
|
)
|
|
(15,579
|
)
|
|
(2,565
|
)
|
|
(1,669
|
)
|
|
(6,661
|
)
|
Net change in capital & surplus
|
|
(52,410
|
)
|
|
50,688
|
|
|
(29,071
|
)
|
|
3,371
|
|
|
33,564
|
|
|
*Includes premiums and annuity and supplementary contract considerations.
|
|
|
As of December 31,
|
||||||||||||||
Selected balance sheet data
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||
Total cash and invested assets
|
|
$
|
596,501
|
|
|
652,934
|
|
|
630,219
|
|
|
641.417
|
|
|
649,961
|
|
Investment income due and accrued
|
|
4,921
|
|
|
5,270
|
|
|
7,101
|
|
|
13.772
|
|
|
14,182
|
|
|
Other admitted assets
|
|
12,922
|
|
|
4,288
|
|
|
7,048
|
|
|
5.272
|
|
|
2,112
|
|
|
Separate account assets
|
|
3,232,062
|
|
|
2,677,964
|
|
|
2,752,080
|
|
|
2,463.583
|
|
|
2,277,274
|
|
|
Total admitted assets
|
|
3,846,406
|
|
|
3,340,456
|
|
|
3,396,448
|
|
|
3,124.044
|
|
|
2,943,529
|
|
|
Total policyholder liabilities
|
|
487,107
|
|
|
484,136
|
|
|
524,125
|
|
|
517,924
|
|
|
527,463
|
|
|
Other liabilities
|
|
(44,099
|
)
|
|
(45,390
|
)
|
|
(52,815
|
)
|
|
(59,593
|
)
|
|
(59,967
|
)
|
|
Separate account liabilities
|
|
3,232,062
|
|
|
2,677,964
|
|
|
2,752,080
|
|
|
2,463,583
|
|
|
2,277,274
|
|
|
Total liabilities
|
|
3,675,070
|
|
|
3,116,710
|
|
|
3,223,390
|
|
|
2,921,914
|
|
|
2,744,770
|
|
|
Total capital and surplus
|
|
171,336
|
|
|
223,746
|
|
|
173,058
|
|
|
202,130
|
|
|
198,759
|
|
|
Year ended December 31,
|
|
Increase (decrease) and % change
|
|
Increase (decrease) and % change
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019 - 2018
|
|
2018 - 2017
|
||||||||||||||
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Premium and annuity considerations*
|
$
|
376,919
|
|
|
306,832
|
|
|
275,425
|
|
|
$
|
70,087
|
|
|
22.8
|
%
|
|
$
|
31,407
|
|
|
11.4
|
%
|
Net investment income
|
19,866
|
|
|
23,273
|
|
|
34,421
|
|
|
(3,407
|
)
|
|
(14.6
|
)
|
|
(11,148
|
)
|
|
(32.4
|
)
|
|||
Ceded reinsurance reserve and expense adjustments
|
181
|
|
|
201
|
|
|
211
|
|
|
(20
|
)
|
|
(10.0
|
)
|
|
(10
|
)
|
|
(4.7
|
)
|
|||
Fees from separate accounts
|
68,960
|
|
|
72,602
|
|
|
74,868
|
|
|
(3,642
|
)
|
|
(5.0
|
)
|
|
(2,266
|
)
|
|
(3.0
|
)
|
|||
Other income
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|||
Total income
|
465,926
|
|
|
402,908
|
|
|
384,949
|
|
|
63,018
|
|
|
15.6
|
|
|
17,959
|
|
|
4.7
|
|
|||
Benefits and other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits and surrenders
|
255,885
|
|
|
246,712
|
|
|
240,015
|
|
|
9,173
|
|
|
3.7
|
|
|
6,697
|
|
|
2.8
|
|
|||
Change in aggregate reserves
|
2,503
|
|
|
(35,379
|
)
|
|
4,740
|
|
|
37,882
|
|
|
107.1
|
|
|
(40,119
|
)
|
|
(846.4
|
)
|
|||
General and administrative and commission
|
52,630
|
|
|
43,506
|
|
|
41,569
|
|
|
9,124
|
|
|
21.0
|
|
|
1,937
|
|
|
4.7
|
|
|||
Net transfers to separate accounts
|
134,980
|
|
|
107,721
|
|
|
60,857
|
|
|
27,259
|
|
|
25.3
|
|
|
46,864
|
|
|
77.0
|
|
|||
Total benefits and other expenses
|
445,998
|
|
|
362,560
|
|
|
347,181
|
|
|
83,438
|
|
|
23.0
|
|
|
15,379
|
|
|
4.4
|
|
|||
Pretax income (loss)
|
19,928
|
|
|
40,348
|
|
|
37,768
|
|
|
(20,420
|
)
|
|
(50.6
|
)
|
|
2,580
|
|
|
6.8
|
|
|||
Income tax (benefit) expense
|
(7,343
|
)
|
|
(292
|
)
|
|
3,333
|
|
|
(7,051
|
)
|
|
NM●
|
|
|
(3,625
|
)
|
|
(108.8
|
)
|
|||
Net realized capital (loss) gain
|
(70,095
|
)
|
|
7,217
|
|
|
(39,732
|
)
|
|
(77,312
|
)
|
|
NM●
|
|
|
46,949
|
|
|
118.2
|
|
|||
Net (loss) income
|
$
|
(42,824
|
)
|
|
47,857
|
|
|
(5,297
|
)
|
|
$
|
(90,681
|
)
|
|
(189.5
|
)%
|
|
$
|
53,154
|
|
|
NM●
|
|
Capital and Surplus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Change in unrealized capital (loss) gain
|
$
|
(8,937
|
)
|
|
18,410
|
|
|
(21,209
|
)
|
|
$
|
(27,347
|
)
|
|
(148.5
|
)%
|
|
$
|
39,619
|
|
|
186.8
|
%
|
Other change in capital & surplus
|
(649
|
)
|
|
(15,579
|
)
|
|
(2,565
|
)
|
|
14,930
|
|
|
95.8
|
|
|
(13,014
|
)
|
|
(507.4
|
)
|
|||
Net change in capital & surplus
|
$
|
(52,410
|
)
|
|
50,688
|
|
|
(29,071
|
)
|
|
$
|
(103,098
|
)
|
|
(203.4
|
)%
|
|
$
|
79,759
|
|
|
274.4
|
%
|
*Includes premiums and annuity and supplementary contract considerations.
|
|||||||||||||||||||||||
●Not meaningful.
|
|
Year ended December 31,
|
|
Increase (decrease) and % change
|
|
Increase (decrease) and % change
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019 - 2018
|
|
2018 - 2017
|
||||||||||||||
Deposits and gross premiums written:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individual Annuities
|
$
|
371,966
|
|
|
298,637
|
|
|
264,826
|
|
|
$
|
73,329
|
|
|
24.6
|
%
|
|
$
|
33,811
|
|
|
12.8
|
%
|
Other
|
4,149
|
|
|
4,289
|
|
|
4,472
|
|
|
(140
|
)
|
|
(3.3
|
)
|
|
(183
|
)
|
|
(4.1
|
)
|
|||
Total
|
$
|
376,115
|
|
|
302,926
|
|
|
269,298
|
|
|
$
|
73,189
|
|
|
24.2
|
%
|
|
$
|
33,628
|
|
|
12.5
|
%
|
In-force:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individual Annuities
|
$
|
3,613,848
|
|
|
3,101,165
|
|
|
3,219,779
|
|
|
$
|
512,683
|
|
|
16.5
|
%
|
|
$
|
(118,614
|
)
|
|
(3.7
|
)%
|
Other
|
49,947
|
|
|
53,361
|
|
|
59,398
|
|
|
(3.414
|
)
|
|
(6.4
|
)
|
|
(6,037
|
)
|
|
(10.2
|
)
|
|||
Total
|
$
|
3,663,795
|
|
|
3,154,526
|
|
|
3,279,177
|
|
|
$
|
509,269
|
|
|
16.1
|
%
|
|
$
|
(124,651
|
)
|
|
(3.8
|
)%
|
•
|
Premium and annuity considerations: Premium and annuity
considerations increased primarily due to the continued growth of the variable-indexed annuity product which was impacted by a sales promotion in 2019 and higher traditional variable annuity sales driven by market conditions in the
Individual Annuities segment.
|
•
|
Net investment income: Net investment income decreased primarily due to the sale
of the Company's Interest Rate Swap (IRS) portfolio in March of 2018, which caused a decline in derivative instrument income as well as negative IMR
|
•
|
Fees from separate accounts: Fees from separate accounts decreased
primarily due to lower M&E and benefit rider income from the effects of negative equity markets in late 2018, which resulted in lower average traditional variable annuity Separate Account assets in 2019. The decrease was also
impacted by higher variable annuity surrenders.
|
•
|
Policyholder benefits and surrenders: Policyholder benefits and
surrenders increased primarily due to an increase in variable surrender benefits driven by policyholder activity. This was partially offset by lower fixed surrenders.
|
•
|
Change in aggregate reserves: Change in aggregate reserves was driven by higher
variable-indexed premium and annuity considerations and an increase in premium deficiency reserves related to the LTC line of business which is supported by the gross premium valuation which is conducted annually. This is partially
offset by fixed annuity reserve decreases due to the continued run-off of the closed block of business.
|
•
|
General and administrative and commission: General and administrative and
commission increased primarily due to higher variable indexed-annuity commissions as a result of an increase in production.
|
•
|
Net transfers to separate accounts: Net
transfers to separate accounts increase is driven by new premium and policyholder withdrawals, and increased due to higher separate account premium.
|
•
|
Income tax (benefit) expense: The higher
income tax benefit in 2019 as compared to 2018 was driven by the timing of the increase in hedging losses.
|
•
|
Net realized capital (loss) gain: Net realized
capital losses are driven by negative hedging results in our Individual Annuities segment due to increasing equity markets.
|
•
|
Change in unrealized capital (loss) gain: Unrealized
capital losses are primarily due to negative hedging results in our Individual Annuities segment due to increasing equity markets.
|
•
|
Other change in capital and surplus: Other change in capital and surplus increased to due change in nonadmitted assets driven by negative IMR and a change in accounting principle in 2018. This was partially offset by an
increase in net deferred income taxes as a result of hedging losses due to favorable equity market impacts.
|
•
|
Premium and annuity considerations: Premium and annuity
considerations increased primarily due to higher traditional variable annuity sales and continued growth of the variable-indexed annuity product driven by market conditions in the Individual Annuities segment.
|
•
|
Net investment income: Net investment income decreased primarily due to a
decrease in interest rate swap (IRS) derivative income due to the sale of the Company's IRS portfolio in March 2018 and lower bond income due to a decrease in average invested assets backing policyholder liabilities as a result of
the continued run-off of the Company's fixed annuity block of business.
|
•
|
Fees from separate accounts: Fees from separate accounts decreased
primarily due to a decrease in M&E and benefit rider income due to negative equity markets which resulted in lower Separate Account assets and higher variable annuity surrenders.
|
•
|
Policyholder benefits and surrenders: Policyholder benefits and
surrenders increased primarily due to higher variable annuity surrenders.
|
•
|
Change in aggregate reserves: Change in aggregate reserves decreased primarily
due to the run off of the fixed block of business.
|
•
|
General and administrative and commission: General and administrative and
commission increased primarily due to higher variable indexed-annuity commissions as a result of an increase in production.
|
•
|
Net transfers to separate accounts: Net
transfers to separate accounts is driven by new premium and policyholder withdrawals, and increased due to higher separate account premium.
|
•
|
Income tax expense (benefit): There is an income tax benefit in
2018, as compared to income tax expense in 2017. The benefit is driven by timing of hedging losses.
|
•
|
Net realized capital gain (loss): Net realized capital gains are driven by positive hedging results in our Individual Annuities segment due to declining equity markets.
|
•
|
Change in unrealized capital gain (loss): Unrealized capital gains are primarily
due to positive hedging results in our Individual Annuities segment due to declining equity markets.
|
•
|
Other change in capital and surplus: Other change in capital and surplus is
primarily due to an increase in nonadmitted assets as a result of nonadmitted negative IMR due to the sale of the Company's IRS portfolio. This was partially offset by net impacts due to changes in accounting principles related to
reserve calculations within our Individual Annuities segment.
|
|
Year ended December 31,
|
|
Increase (decrease) and % change
|
|
Increase (decrease) and % change
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019 - 2018
|
|
2018 - 2017
|
||||||||||||||||
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premium and annuity considerations*
|
$
|
373,869
|
|
|
303,753
|
|
|
272,214
|
|
|
$
|
70,116
|
|
|
23.1
|
%
|
|
$
|
31,539
|
|
|
11.6
|
%
|
||
Net investment income
|
16,813
|
|
|
20,651
|
|
|
31,845
|
|
|
(3,838
|
)
|
|
(18.6
|
)
|
|
(11,194
|
)
|
|
(35.2
|
)
|
|||||
Fees from separate accounts
|
68,960
|
|
|
72,602
|
|
|
74,868
|
|
|
(3,642
|
)
|
|
(5.0
|
)
|
|
(2,266
|
)
|
|
(3.0
|
)
|
|||||
Other income
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|||||
Total income
|
459,642
|
|
|
397,006
|
|
|
378,951
|
|
|
62,636
|
|
|
15.8
|
|
|
18,055
|
|
|
4.8
|
|
|||||
Benefits and other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Policyholder benefits and surrenders
|
254,424
|
|
|
245,151
|
|
|
238,550
|
|
|
9,273
|
|
|
3.8
|
|
|
6,601
|
|
|
2.8
|
|
|||||
Change in aggregate reserves
|
(16,098
|
)
|
|
(41,622
|
)
|
|
(1,426
|
)
|
|
25,524
|
|
|
61.3
|
|
|
(40,196
|
)
|
|
NM●
|
|
|||||
General and administrative and commission
|
51,799
|
|
|
42,982
|
|
|
40,599
|
|
|
8,817
|
|
|
20.5
|
|
|
2,383
|
|
|
5.9
|
|
|||||
Net transfers to separate accounts
|
134,980
|
|
|
107,721
|
|
|
60,857
|
|
|
27,259
|
|
|
25.3
|
|
|
46,864
|
|
|
77.0
|
|
|||||
Total benefits and other expenses
|
425,105
|
|
|
354,232
|
|
|
338,580
|
|
|
70,873
|
|
|
20.0
|
|
|
15,652
|
|
|
4.6
|
|
|||||
Pretax income (loss)
|
34,537
|
|
|
42,774
|
|
|
40,371
|
|
|
(8,237
|
)
|
|
(19.3
|
)
|
|
2,403
|
|
|
6.0
|
|
|||||
Income tax (benefit) expense
|
(12,727
|
)
|
|
(309
|
)
|
|
3,563
|
|
|
(12,418
|
)
|
|
NM●
|
|
|
(3,872
|
)
|
|
(108.7
|
)
|
|||||
Net realized capital (loss) gain
|
(70,099
|
)
|
|
1,593
|
|
|
(37,599
|
)
|
|
(71,692
|
)
|
|
NM●
|
|
|
39,192
|
|
|
104.2
|
|
|||||
Net (loss) income
|
$
|
(22,835
|
)
|
|
44,676
|
|
|
(791
|
)
|
|
$
|
(67,511
|
)
|
|
(151.1
|
)%
|
|
$
|
45,467
|
|
|
NM●
|
|
||
Capital and Surplus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in unrealized capital (loss) gain
|
$
|
(9,089
|
)
|
|
19,051
|
|
|
(22,087
|
)
|
|
$
|
(28,140
|
)
|
|
(147.7
|
)%
|
|
$
|
41,138
|
|
|
186.3
|
%
|
||
Other change in capital & surplus
|
(629
|
)
|
|
(13,134
|
)
|
|
(1,759
|
)
|
|
12,505
|
|
|
95.2
|
|
|
(11,375
|
)
|
|
(646.7
|
)
|
|||||
Net change in capital & surplus
|
$
|
(32,553
|
)
|
|
$
|
50,593
|
|
|
$
|
(24,637
|
)
|
|
$
|
(83,146
|
)
|
|
(164.3
|
)%
|
|
$
|
75,230
|
|
|
305.4
|
%
|
*Includes premiums and annuity and supplementary contract considerations.
|
|||||||||||||||||||||||||
●Not meaningful
|
|
Year ended December 31,
|
|
Increase (decrease) and % change
|
|
Increase (decrease) and % change
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019 - 2018
|
|
2018 - 2017
|
||||||||||||||
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Premium and annuity considerations
|
$
|
3,050
|
|
|
3,079
|
|
|
3,211
|
|
|
$
|
(29
|
)
|
|
(0.9
|
)%
|
|
$
|
(132
|
)
|
|
(4.1
|
)%
|
Net investment income
|
3,053
|
|
|
2,622
|
|
|
2,576
|
|
|
431
|
|
|
16.4
|
|
|
46
|
|
|
1.8
|
|
|||
Ceded reinsurance reserve and expense adjustments
|
181
|
|
|
201
|
|
|
211
|
|
|
(20
|
)
|
|
(10.0
|
)
|
|
(10
|
)
|
|
(4.7
|
)
|
|||
Total income
|
6,284
|
|
|
5,902
|
|
|
5,998
|
|
|
382
|
|
|
6.5
|
|
|
(96
|
)
|
|
(1.6
|
)
|
|||
Benefits and other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits and surrenders
|
1,462
|
|
|
1,561
|
|
|
1,465
|
|
|
(99
|
)
|
|
(6.3
|
)
|
|
96
|
|
|
6.6
|
|
|||
Change in aggregate reserves
|
18,601
|
|
|
6,243
|
|
|
6,166
|
|
|
12,358
|
|
|
197.9
|
|
|
77
|
|
|
1.2
|
|
|||
General and administrative and commission
|
830
|
|
|
524
|
|
|
970
|
|
|
306
|
|
|
58.4
|
|
|
(446
|
)
|
|
(46.0
|
)
|
|||
Total benefits and other expenses
|
20,893
|
|
|
8,328
|
|
|
8,601
|
|
|
12,565
|
|
|
150.9
|
|
|
(273
|
)
|
|
(3.2
|
)
|
|||
Pretax (loss) income
|
(14,609
|
)
|
|
(2,426
|
)
|
|
(2,603
|
)
|
|
(12,565
|
)
|
|
(517.9
|
)
|
|
177
|
|
|
6.8
|
|
|||
Income tax expense (benefit)
|
5,384
|
|
|
17
|
|
|
(230
|
)
|
|
5,367
|
|
|
NM●
|
|
|
247
|
|
|
NM●
|
|
|||
Net realized capital gain (loss)
|
4
|
|
|
5,624
|
|
|
(2,133
|
)
|
|
(5,620
|
)
|
|
(99.9
|
)
|
|
7,757
|
|
|
NM●
|
|
|||
Net (loss) income
|
$
|
(19,989
|
)
|
|
3,181
|
|
|
(4,506
|
)
|
|
$
|
(23,170
|
)
|
|
(728.4
|
)%
|
|
$
|
7,687
|
|
|
170.6
|
%
|
Capital and Surplus:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Change in unrealized capital gain (loss)
|
$
|
152
|
|
|
(641
|
)
|
|
878
|
|
|
$
|
793
|
|
|
123.7
|
%
|
|
$
|
(1,519
|
)
|
|
(173.0
|
)%
|
Other change in capital & surplus
|
(20
|
)
|
|
(2,445
|
)
|
|
(806
|
)
|
|
2,425
|
|
|
99.2
|
|
|
(1,639
|
)
|
|
(203.3
|
)
|
|||
Net change in capital & surplus
|
$
|
(19,857
|
)
|
|
95
|
|
|
(4,434
|
)
|
|
$
|
(19,952
|
)
|
|
NM●
|
|
|
$
|
4,529
|
|
|
102.1
|
%
|
●Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
||||||||||
|
Carrying Value
|
|
% of total
|
|
Carrying Value
|
|
% of total
|
||||||
Bonds
|
$
|
554,866
|
|
|
93.0
|
%
|
|
$
|
603,762
|
|
|
92.5
|
%
|
Cash and cash equivalents
|
41,013
|
|
|
6.9
|
|
|
47,639
|
|
|
7.3
|
|
||
Policy loans
|
329
|
|
|
0.1
|
|
|
360
|
|
|
0.1
|
|
||
Derivative assets
|
283
|
|
|
—
|
|
|
190
|
|
|
(0.1
|
)
|
||
Receivables for securities
|
10
|
|
|
0.0
|
|
|
983
|
|
|
0.2
|
|
||
Total cash and invested assets
|
$
|
596,501
|
|
|
100.0
|
%
|
|
$
|
652,934
|
|
|
100.0
|
%
|
|
2019
|
||||||||||||
NAIC Classes
|
Fair Value
|
|
% of Total
|
|
Amortized Cost
|
|
% of Total
|
||||||
1
|
$
|
377,821
|
|
|
63.8
|
%
|
|
$
|
357,536
|
|
|
64.4
|
%
|
2
|
211,076
|
|
|
35.6
|
|
|
194,083
|
|
|
35.0
|
|
||
Investment grade
|
588,897
|
|
|
99.4
|
|
|
551,619
|
|
|
99.4
|
|
||
3
|
2,748
|
|
|
0.5
|
|
|
2,717
|
|
|
0.5
|
|
||
4
|
551
|
|
|
0.1
|
|
|
530
|
|
|
0.1
|
|
||
5
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
6
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Below investment grade
|
3,299
|
|
|
0.6
|
|
|
3,247
|
|
|
0.6
|
|
||
Total
|
$
|
592,196
|
|
|
100.0
|
%
|
|
$
|
554,866
|
|
|
100.0
|
%
|
|
2018
|
||||||||||||
NAIC Classes
|
Fair Value
|
|
% of Total
|
|
Amortized Cost
|
|
% of Total
|
||||||
1
|
$
|
407,150
|
|
|
67.4
|
%
|
|
$
|
405,037
|
|
|
67.1
|
%
|
2
|
192,268
|
|
|
31.8
|
|
|
193,667
|
|
|
32.1
|
|
||
Investment grade
|
599,418
|
|
|
99.2
|
|
|
598,704
|
|
|
99.2
|
|
||
3
|
3,758
|
|
|
0.6
|
|
|
4,034
|
|
|
0.6
|
|
||
4
|
440
|
|
|
0.1
|
|
|
533
|
|
|
0.1
|
|
||
5
|
491
|
|
|
0.1
|
|
|
491
|
|
|
0.1
|
|
||
6
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Below investment grade
|
4,689
|
|
|
0.8
|
|
|
5,058
|
|
|
0.8
|
|
||
Total
|
$
|
604,107
|
|
|
100.0
|
%
|
|
$
|
603,762
|
|
|
100.0
|
%
|
•
|
AM Best A+ (Superior)
|
•
|
S&P AA (Very Strong)
|
|
|
Year ended December 31,
|
||||||||
|
|
|
2018
|
|
2017
|
|||||
Net cash provided by operating activities
|
|
$
|
28,664
|
|
|
38,823
|
|
|
53,321
|
|
Net cash used in investing activities
|
|
(32,994
|
)
|
|
(12,245
|
)
|
|
(83,623
|
)
|
|
Net cash (used in) provided by financing and miscellaneous activities
|
|
(2,296
|
)
|
|
2,316
|
|
|
(602
|
)
|
|
Net (decrease) increase in cash and cash equivalents
|
|
$
|
(6,626
|
)
|
|
28,894
|
|
|
(30,904
|
)
|
Admitted Assets
|
|
2019
|
|
2018
|
|||
Cash and invested assets:
|
|
|
|
|
|||
Bonds
|
|
$
|
554,866
|
|
|
603,762
|
|
Cash and cash equivalents
|
|
41,013
|
|
|
47,639
|
|
|
Policy loans
|
|
329
|
|
|
360
|
|
|
Derivative assets
|
|
283
|
|
|
190
|
|
|
Receivables for securities
|
|
10
|
|
|
983
|
|
|
Total cash and invested assets
|
|
596,501
|
|
|
652,934
|
|
|
Investment income due and accrued
|
|
4,921
|
|
|
5,270
|
|
|
Deferred tax asset, net
|
|
4,307
|
|
|
3,081
|
|
|
Current federal and foreign income tax recoverable
|
|
7,390
|
|
|
—
|
|
|
Other assets
|
|
1,225
|
|
|
1,207
|
|
|
Admitted assets, exclusive of separate account assets
|
|
614,344
|
|
|
662,492
|
|
|
Separate account assets
|
|
3,232,062
|
|
|
2,677,964
|
|
|
Total admitted assets
|
|
$
|
3,846,406
|
|
|
3,340,456
|
|
Liabilities and Capital and Surplus
|
2019
|
|
2018
|
||||
Policyholder liabilities:
|
|
|
|
|
|||
Life policies and annuity contracts
|
|
$
|
419,693
|
|
|
435,987
|
|
Accident and health policies
|
|
63,589
|
|
|
45,072
|
|
|
Deposit-type contracts
|
|
3,604
|
|
|
2,879
|
|
|
Life policy and contract claims
|
|
27
|
|
|
27
|
|
|
Accident and health policy and contract claims
|
|
194
|
|
|
171
|
|
|
Total policyholder liabilities
|
|
487,107
|
|
|
484,136
|
|
|
General expenses due and accrued
|
|
485
|
|
|
524
|
|
|
Due from separate accounts
|
|
(56,933
|
)
|
|
(59,985
|
)
|
|
Payable to parent and affiliates
|
|
3,384
|
|
|
4,692
|
|
|
Current income taxes
|
|
—
|
|
|
588
|
|
|
Asset valuation reserve
|
|
5,601
|
|
|
4,432
|
|
|
Derivative liabilities
|
|
—
|
|
|
174
|
|
|
Other liabilities
|
|
3,364
|
|
|
4,185
|
|
|
Liabilities, exclusive of separate account liabilities
|
|
443,008
|
|
|
438,746
|
|
|
Separate account liabilities
|
|
3,232,062
|
|
|
2,677,964
|
|
|
Total liabilities
|
|
3,675,070
|
|
|
3,116,710
|
|
|
Capital and surplus:
|
|
|
|
|
|||
Common stock, $10 par value. Authorized, issued, and outstanding 200,000 shares at December 31, 2019 and 2018
|
|
2,000
|
|
|
2,000
|
|
|
Additional paid-in capital
|
|
72,500
|
|
|
72,500
|
|
|
Unassigned surplus
|
|
96,836
|
|
|
149,246
|
|
|
Total capital and surplus
|
|
171,336
|
|
|
223,746
|
|
|
Total liabilities and capital and surplus
|
|
$
|
3,846,406
|
|
|
3,340,456
|
|
|
|
|
|
|
|||
See accompanying notes to statutory financial statements.
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||
Income:
|
|
|
|
|
|
|
||||
Premiums and annuity considerations
|
|
$
|
375,015
|
|
|
301,715
|
|
|
268,035
|
|
Consideration for supplementary contracts
|
|
1,904
|
|
|
5,117
|
|
|
7,390
|
|
|
Net investment income
|
|
19,866
|
|
|
23,273
|
|
|
34,421
|
|
|
Commissions and expense allowances on reinsurance ceded
|
|
181
|
|
|
201
|
|
|
211
|
|
|
Fees from separate accounts
|
|
68,960
|
|
|
72,602
|
|
|
74,868
|
|
|
Other
|
|
—
|
|
|
—
|
|
|
24
|
|
|
Total income
|
|
465,926
|
|
|
402,908
|
|
|
384,949
|
|
|
Benefits and other expenses:
|
|
|
|
|
|
|
||||
Policyholder benefits
|
|
33,083
|
|
|
26,024
|
|
|
30,967
|
|
|
Surrenders
|
|
222,802
|
|
|
220,688
|
|
|
209,048
|
|
|
Change in aggregate reserves and deposit funds
|
|
2,503
|
|
|
(35,379
|
)
|
|
4,740
|
|
|
Commissions and other agent compensation
|
|
28,312
|
|
|
24,543
|
|
|
23,374
|
|
|
General and administrative expenses
|
|
24,318
|
|
|
18,963
|
|
|
18,195
|
|
|
Net transfers to separate accounts
|
|
134,980
|
|
|
107,721
|
|
|
60,857
|
|
|
Total benefits and other expenses
|
|
445,998
|
|
|
362,560
|
|
|
347,181
|
|
|
Income from operations before income taxes and net realized capital (loss) gain
|
|
19,928
|
|
|
40,348
|
|
|
37,768
|
|
|
Income tax (benefit) expense
|
|
(7,343
|
)
|
|
(292
|
)
|
|
3,333
|
|
|
Net income from operations before net realized capital (loss)
gain |
|
27,271
|
|
|
40,640
|
|
|
34,435
|
|
|
Net realized capital (loss) gain, net of taxes and interest maintenance reserve
|
|
(70,095
|
)
|
|
7,217
|
|
|
(39,732
|
)
|
|
Net (loss) income
|
|
$
|
(42,824
|
)
|
|
47,857
|
|
|
(5,297
|
)
|
|
|
|
|
|
|
|
||||
See accompanying notes to statutory financial statements.
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||
Capital and surplus at beginning of year
|
|
$
|
223,746
|
|
|
173,058
|
|
|
202,130
|
|
Change in accounting principle, net of tax (Note 3)
|
|
—
|
|
|
3,191
|
|
|
—
|
|
|
Correction of errors, net of tax (Note 3)
|
|
—
|
|
|
—
|
|
|
2,932
|
|
|
Adjusted balance at beginning of year
|
|
223,746
|
|
|
176,249
|
|
|
205,062
|
|
|
Net (loss) income
|
|
(42,824
|
)
|
|
47,857
|
|
|
(5,297
|
)
|
|
Change in unrealized capital (loss) gain
|
|
(8,937
|
)
|
|
18,410
|
|
|
(21,209
|
)
|
|
Change in net deferred income tax
|
|
3,356
|
|
|
332
|
|
|
(2,569
|
)
|
|
Change in nonadmitted assets
|
|
(2,712
|
)
|
|
(18,198
|
)
|
|
(2,489
|
)
|
|
Other changes in capital and surplus
|
|
(1,293
|
)
|
|
(904
|
)
|
|
(440
|
)
|
|
Capital and surplus at end of year
|
|
$
|
171,336
|
|
|
223,746
|
|
|
173,058
|
|
|
|
|
|
|
|
|
||||
See accompanying notes to statutory financial statements.
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||
Revenues:
|
|
|
|
|
|
|
||||
Premiums and annuity considerations, net
|
|
$
|
376,831
|
|
|
306,827
|
|
|
275,427
|
|
Net investment income
|
|
22,640
|
|
|
26,144
|
|
|
41,257
|
|
|
Other income
|
|
69,139
|
|
|
72,805
|
|
|
75,101
|
|
|
Total cash provided by operating activities
|
|
468,610
|
|
|
405,776
|
|
|
391,785
|
|
|
Benefits and expenses paid:
|
|
|
|
|
|
|
||||
Benefit and loss-related payments
|
|
254,810
|
|
|
245,902
|
|
|
239,655
|
|
|
Commissions, expenses paid, and aggregate write-ins for deductions
|
|
52,455
|
|
|
42,993
|
|
|
41,466
|
|
|
Net transfers to separate accounts
|
|
131,928
|
|
|
72,777
|
|
|
57,591
|
|
|
Income tax paid (benefit received), net
|
|
753
|
|
|
5,281
|
|
|
(248
|
)
|
|
Total cash used in operating activities
|
|
439,946
|
|
|
366,953
|
|
|
338,464
|
|
|
Net cash provided by operating activities
|
|
28,664
|
|
|
38,823
|
|
|
53,321
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
||||
Proceeds from investments sold, matured, or repaid:
|
|
|
|
|
|
|
||||
Bonds
|
|
149,505
|
|
|
119,948
|
|
|
76,300
|
|
|
Miscellaneous proceeds
|
|
1,006
|
|
|
758
|
|
|
6,834
|
|
|
Total cash provided by investing activities
|
|
150,511
|
|
|
120,706
|
|
|
83,134
|
|
|
Cost of investments acquired:
|
|
|
|
|
|
|
||||
Bonds
|
|
100,701
|
|
|
123,799
|
|
|
108,338
|
|
|
Derivatives
|
|
82,804
|
|
|
9,152
|
|
|
47,869
|
|
|
Miscellaneous applications
|
|
—
|
|
|
—
|
|
|
10,550
|
|
|
Total cash used in investing activities
|
|
183,505
|
|
|
132,951
|
|
|
166,757
|
|
|
Net cash used in investing activities
|
|
(32,994
|
)
|
|
(12,245
|
)
|
|
(83,623
|
)
|
|
Cash flows from financing and miscellaneous activities:
|
|
|
|
|
|
|
||||
Change in payable to parent and affiliates
|
|
(1,308
|
)
|
|
1,895
|
|
|
(323
|
)
|
|
Other
|
|
(988
|
)
|
|
421
|
|
|
(279
|
)
|
|
Net cash (used in) provided by financing and miscellaneous activities
|
|
(2,296
|
)
|
|
2,316
|
|
|
(602
|
)
|
|
Net (decrease) increase in cash and cash equivalents
|
|
(6,626
|
)
|
|
28,894
|
|
|
(30,904
|
)
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
||||
Beginning of year
|
|
47,639
|
|
|
18,745
|
|
|
49,649
|
|
|
End of year
|
|
$
|
41,013
|
|
|
47,639
|
|
|
18,745
|
|
|
|
|
|
|
|
|
||||
See accompanying notes to statutory financial statements.
|
|
|
|
|
|
|
(1)
|
Organization and Nature of Operations
|
(a)
|
Basis of Presentation
|
(1)
|
Acquisition costs, such as commissions and other costs incurred in connection with acquiring new and renewal business, are
charged to current operations as incurred. Under U.S. GAAP, acquisition costs that are directly related to the successful acquisition of insurance contracts are capitalized and charged to operations as the corresponding revenues or future
profits are recognized.
|
(2)
|
Aggregate reserves for life policies and annuity contracts, excluding variable annuities, are based on statutory mortality and
interest assumptions without consideration for lapses or withdrawals. Under U.S. GAAP, aggregate reserves consider lapses and withdrawals.
|
(3)
|
Ceded reinsurance recoverable are netted against their related reserves within Policyholder liabilities, Life policies and
annuity contracts and Life policy and contract claims, on the Statutory Statements of Admitted Assets, Liabilities, and Capital and Surplus. Under U.S. GAAP, these ceded reserves are presented on a gross basis as an asset.
|
(4)
|
Bonds are carried at values prescribed by the NAIC, generally amortized cost, except for those with an NAIC rating of 6, which
are reported at the lower of amortized cost or fair value. Under U.S. GAAP, bonds classified as “available-for-sale” are carried at fair value, with unrealized gains and losses recorded in stockholder’s equity.
|
(5)
|
Changes in deferred income taxes are recorded directly to Unassigned surplus. Under U.S. GAAP, these items are recorded as an
item of income tax benefit or expense in operations. Moreover, under NAIC SAP, a valuation allowance may be recorded against the deferred tax asset (DTA) and admittance testing may result in an additional charge to capital and surplus for
nonadmitted portions of DTAs. Under U.S. GAAP, a valuation allowance may be recorded against the DTA and reflected as an expense.
|
(6)
|
The Company is required to establish an asset valuation reserve (AVR) liability and an interest maintenance reserve (IMR)
liability. The AVR provides for a standardized statutory investment valuation reserve for certain invested assets. Changes in this reserve are recorded as direct charges or credits to Unassigned surplus. The IMR is designed to defer net
realized capital gains and losses resulting from changes in the level of prevailing market interest rates and amortize them into income within the Statutory Statements of Operations over the remaining life of the investment sold. The IMR
represents the unamortized portion of applicable investment gains and losses as of the balance sheet date. There is no such concept under U.S. GAAP.
|
(7)
|
Certain assets designated as “nonadmitted assets” are not recognized and are charged directly to Unassigned surplus within the
Statutory Statements of Capital and Surplus. These include, but are not limited to, furniture and fixtures, prepaid expenses, receivables outstanding greater than 90 days, negative IMR, and portions of DTAs. There is
no such concept under U.S. GAAP.
|
(8)
|
A provision is made for amounts ceded to unauthorized reinsurers in excess of collateral in the form of a trust or letter of
credit through a direct charge to Unassigned surplus within the Statutory Statements of Capital and Surplus. There is no such requirement under U.S. GAAP.
|
(9)
|
Revenues for universal life policies and annuity contracts, excluding deposit-type contracts, are recognized as revenue when
received within the Statutory Statements of Operations. Under U.S. GAAP, policy and contract fees charged for the cost of insurance, policy administrative charges, amortization of policy initiation fees, and surrender contract charges are
recorded as revenues when earned.
|
(10)
|
Benefits for universal life policies and annuity contracts within the Statutory Statements of Operations, excluding
deposit-type contracts, consist of payments made to policyholders. Under U.S. GAAP, benefits represent interest credited, and claims and benefits incurred in excess of the policyholder’s contract balance.
|
(11)
|
Changes in the fair value of derivatives are recorded as direct adjustments to Unassigned surplus as a component of Change in
unrealized capital gains (losses) within the Statutory Statements of Capital and Surplus. Under U.S. GAAP, changes in the fair value of derivatives are recorded in derivative income (loss) as part of operating income.
|
(12)
|
Commissions allowed by reinsurers on business ceded are reported as income when received within the Statutory Statements of
Operations. Under U.S. GAAP, such commissions are deferred and amortized as a component of deferred acquisition costs.
|
(13)
|
The Statutory Financial Statements do not include a statement of comprehensive income as required under U.S. GAAP.
|
(14)
|
The Statutory Statements of Cash Flow do not classify cash flows consistent with U.S. GAAP and a reconciliation of net income
to net cash provided from operating activities is not provided.
|
(15)
|
The calculation of reserves and transfers in the separate account statement requires the use of a Commissioners Annuity Reserve
Valuation Method (CARVM) allowance on annuities for NAIC SAP. There is no such requirement under U.S. GAAP.
|
(16)
|
Sales inducements and premium bonuses are included in Life policies and annuity contracts in the Statutory Statements of
Admitted Assets, Liabilities, and Capital and Surplus, and are charged to current operations as incurred. Under U.S. GAAP, deferred sales inducements and premium bonuses are similarly reserved; however, the costs are capitalized as assets
and charged to operations as future profits are recognized in a manner similar to acquisition costs.
|
(17)
|
Negative cash balances are presented as a negative asset within the Statutory Statements of Admitted Assets, Liabilities, and
Capital and Surplus. These balances are presented as a liability under U.S. GAAP.
|
(18)
|
(19)
|
For variable-indexed annuities, the Department requires the Company
to maintain a separate asset portfolio to back related reserves. These assets and liabilities are required to be included as part of the Separate account assets and Separate account liabilities presented on the Statutory Statements of
Admitted Assets, Liabilities, and Capital and Surplus. Under U.S. GAAP, there is no such requirement.
|
(b)
|
Permitted and Prescribed Statutory Accounting Practices
|
(c)
|
Use of Estimates
|
(d)
|
Premiums and Annuity Considerations
|
(e)
|
Aggregate Reserves for Life Policies and Annuity Contracts
|
(f)
|
Aggregate Reserves for Accident and Health Policies
|
(g)
|
Deposit-type Contracts
|
(h)
|
Policy and Contract Claims
|
(i)
|
Reinsurance
|
(j)
|
Investments
|
(k)
|
Derivatives
|
(m)
|
Separate Accounts
|
(n)
|
Receivables
|
(o)
|
Reclassifications
|
(3)
|
Accounting Changes and Corrections of Errors
|
(f)
|
Operational Risk
|
(g)
|
Regulatory Change Risk
|
(h)
|
Rating Agency Risk
|
(i)
|
Mortality/Longevity Risk
|
(j)
|
Lapse Risk
|
(k)
|
Cyber Security Risk
|
(l)
|
Reinsurance Risk
|
(a)
|
Bonds and Other Assets Receiving Bond Treatment
|
|
|
2019
|
|||||||||||
|
|
Amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Fair value
|
|||||
Bonds:
|
|
|
|
|
|
|
|
|
|||||
U.S. government
|
|
$
|
70,170
|
|
|
432
|
|
|
77
|
|
|
70,525
|
|
States and political subdivisions
|
|
7,092
|
|
|
686
|
|
|
—
|
|
|
7,778
|
|
|
Corporate securities
|
|
338,916
|
|
|
31,107
|
|
|
10
|
|
|
370,013
|
|
|
Mortgage-backed securities
|
|
138,688
|
|
|
5,194
|
|
|
2
|
|
|
143,880
|
|
|
Total
|
|
$
|
554,866
|
|
|
37,419
|
|
|
89
|
|
|
592,196
|
|
|
|
2018
|
|||||||||||
|
|
Amortized cost
|
|
Gross unrealized gains
|
|
Gross unrealized losses
|
|
Fair value
|
|||||
Bonds:
|
|
|
|
|
|
|
|
|
|||||
U.S. government
|
|
$
|
93,112
|
|
|
291
|
|
|
292
|
|
|
93,111
|
|
States and political subdivisions
|
|
7,419
|
|
|
265
|
|
|
161
|
|
|
7,523
|
|
|
Corporate securities
|
|
352,166
|
|
|
9,285
|
|
|
7,514
|
|
|
353,937
|
|
|
Mortgage-backed securities
|
|
151,065
|
|
|
700
|
|
|
2,230
|
|
|
149,535
|
|
|
Total
|
|
$
|
603,762
|
|
|
10,541
|
|
|
10,197
|
|
|
604,106
|
|
|
|
Amortized cost
|
|
Fair value
|
|||
Due in 1 year or less
|
|
$
|
26,348
|
|
|
26,647
|
|
Due after 1 year through 5 years
|
|
191,538
|
|
|
196,223
|
|
|
Due after 5 years through 10 years
|
|
97,396
|
|
|
104,272
|
|
|
Due after 10 years
|
|
100,896
|
|
|
121,173
|
|
|
Loan-backed and other structured securities
|
|
138,688
|
|
|
143,881
|
|
|
Total bonds and other assets receiving bond treatment
|
|
$
|
554,866
|
|
|
592,196
|
|
(b)
|
Unrealized Investment Losses
|
|
2019
|
|||||||||||||||||
|
12 months or less
|
|
Greater than 12 months
|
|
Total
|
|||||||||||||
|
Fair value
|
|
Unrealized losses
|
|
Fair value
|
|
Unrealized losses
|
|
Fair value
|
|
Unrealized losses
|
|||||||
Bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
U.S. government
|
$
|
12,753
|
|
|
77
|
|
|
—
|
|
|
—
|
|
|
12,753
|
|
|
77
|
|
Corporate securities
|
495
|
|
|
2
|
|
|
273
|
|
|
8
|
|
|
768
|
|
|
10
|
|
|
Mortgage-backed securities
|
2,011
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2,011
|
|
|
2
|
|
|
Total temporarily impaired securities
|
$
|
15,259
|
|
|
81
|
|
|
273
|
|
|
8
|
|
|
15,532
|
|
|
89
|
|
|
2018
|
|||||||||||||||||
|
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
|
$
|
40,522
|
|
|
144
|
|
|
7,806
|
|
|
148
|
|
|
48,328
|
|
|
292
|
|
States and political subdivisions
|
4,278
|
|
|
161
|
|
|
—
|
|
|
—
|
|
|
4,278
|
|
|
161
|
|
|
Corporate securities
|
154,286
|
|
|
4,658
|
|
|
41,844
|
|
|
2,856
|
|
|
196,130
|
|
|
7,514
|
|
|
Mortgage-backed securities
|
70,164
|
|
|
848
|
|
|
35,931
|
|
|
1,382
|
|
|
106,095
|
|
|
2,230
|
|
|
Total temporarily impaired securities
|
$
|
269,250
|
|
|
5,811
|
|
|
85,581
|
|
|
4,386
|
|
|
354,831
|
|
|
10,197
|
|
(c)
|
Realized Investment Gains (Losses)
|
|
|
2019
|
|
2018
|
|
2017
|
||||
Bonds
|
|
$
|
784
|
|
|
(2,125
|
)
|
|
(306
|
)
|
Derivatives
|
|
(70,151
|
)
|
|
(37,022
|
)
|
|
(21,508
|
)
|
|
Other
|
|
4
|
|
|
27
|
|
|
55
|
|
|
Total realized capital losses
|
|
(69,363
|
)
|
|
(39,120
|
)
|
|
(21,759
|
)
|
|
Income tax (expense) benefit on net realized losses
|
|
(118
|
)
|
|
335
|
|
|
223
|
|
|
Total realized capital losses, net of taxes
|
|
(69,481
|
)
|
|
(38,785
|
)
|
|
(21,536
|
)
|
|
Net gains (losses) transferred to IMR, net of taxes
|
|
614
|
|
|
(46,002
|
)
|
|
18,196
|
|
|
Net realized (losses) gains, net of taxes and IMR
|
|
$
|
(70,095
|
)
|
|
7,217
|
|
|
(39,732
|
)
|
(d)
|
Net Investment Income
|
|
|
2019
|
|
2018
|
|
2017
|
||||
Interest:
|
|
|
|
|
|
|
||||
Bonds
|
|
$
|
21,636
|
|
|
22,183
|
|
|
23,972
|
|
Policy loans
|
|
13
|
|
|
(12
|
)
|
|
22
|
|
|
Cash, cash equivalents, and short-term investments
|
|
686
|
|
|
779
|
|
|
278
|
|
|
Derivatives
|
|
—
|
|
|
990
|
|
|
9,837
|
|
|
Other
|
|
52
|
|
|
30
|
|
|
35
|
|
|
Gross investment income
|
|
22,387
|
|
|
23,970
|
|
|
34,144
|
|
|
Investment expenses
|
|
(974
|
)
|
|
(691
|
)
|
|
(847
|
)
|
|
Net investment income before amortization of IMR
|
|
21,413
|
|
|
23,279
|
|
|
33,297
|
|
|
Amortization of IMR
|
|
(1,547
|
)
|
|
(6
|
)
|
|
1,124
|
|
|
Net investment income
|
|
$
|
19,866
|
|
|
23,273
|
|
|
34,421
|
|
(e)
|
Loan-Backed Securities
|
(f)
|
Derivatives and Hedging Instruments
|
|
|
2019
|
|
2018
|
||||||||||||||||
|
|
|
|
Gross Fair Value
|
|
|
|
Gross Fair Value
|
||||||||||||
|
|
Notional (1)
|
|
Assets
|
|
Liabilities
|
|
Notional (1)
|
|
Assets
|
|
Liabilities
|
||||||||
OTC options
|
|
$
|
194,850
|
|
|
283
|
|
|
—
|
|
|
123,225
|
|
|
190
|
|
|
(174
|
)
|
|
Futures
|
|
238,907
|
|
|
—
|
|
|
—
|
|
|
336,519
|
|
|
—
|
|
|
—
|
|
||
TRS
|
|
8,000
|
|
|
—
|
|
|
—
|
|
|
14,000
|
|
|
—
|
|
|
—
|
|
||
Total derivative instruments
|
|
|
|
$
|
283
|
|
|
—
|
|
|
|
|
190
|
|
|
(174
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Notional amounts are presented
on an absolute basis.
|
(g)
|
Offsetting Assets and Liabilities
|
(h)
|
Restricted Assets
|
|
|
Gross Restricted
|
|
|
|
|
|
Percentage
|
|||||||||||
|
|
Total general account
|
|
Total from prior year
|
|
Increase (decrease)
|
|
Total current year admitted restricted
|
|
Gross restricted to total assets
|
|
Admitted restricted to total admitted assets
|
|||||||
On deposit with states
|
|
$
|
1,667
|
|
|
1,672
|
|
|
(5
|
)
|
|
1,667
|
|
|
—
|
%
|
|
—
|
%
|
Derivative collateral
|
|
24,310
|
|
|
55,569
|
|
|
(31,259
|
)
|
|
24,310
|
|
|
0.6
|
|
|
0.6
|
|
|
Total restricted assets
|
|
$
|
25,977
|
|
|
57,241
|
|
|
(31,264
|
)
|
|
25,977
|
|
|
0.6
|
%
|
|
0.6
|
%
|
|
|
2019
|
|||||||||||
|
|
Level 1
|
|
Level 2 (a)
|
|
Level 3
|
|
Total
|
|||||
Assets at fair value
|
|
|
|
|
|
|
|
|
|||||
Derivative assets
|
|
$
|
—
|
|
|
283
|
|
|
—
|
|
|
283
|
|
Separate account assets
|
|
2,295,709
|
|
|
125,436
|
|
|
—
|
|
|
2,421,145
|
|
|
Total assets reported at fair value
|
|
2,295,709
|
|
|
125,719
|
|
|
—
|
|
|
2,421,428
|
|
|
Liabilities at fair value
|
|
|
|
|
|
|
|
|
|||||
Separate account derivative liabilities
|
|
—
|
|
|
51,037
|
|
|
—
|
|
|
51,037
|
|
|
Total liabilities reported at fair value
|
|
$
|
—
|
|
|
51,037
|
|
|
—
|
|
|
51,037
|
|
|
|
|
|
|
|
|
|
|
|||||
(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.
|
|
|
2018
|
||||||||||||
|
|
Level 1
|
|
Level 2 (a)
|
|
Level 3
|
|
Total
|
||||||
Assets at fair value
|
|
|
|
|
|
|
|
|
||||||
Derivative assets
|
|
$
|
—
|
|
|
190
|
|
|
—
|
|
|
190
|
|
|
Separate account assets
|
|
2,128,031
|
|
|
11,846
|
|
|
—
|
|
|
2,139,877
|
|
||
Total assets reported at fair value
|
|
2,128,031
|
|
|
12,036
|
|
|
—
|
|
|
2,140,067
|
|
||
Liabilities at fair value
|
|
|
|
|
|
|
|
|
||||||
Derivative liabilities
|
|
—
|
|
|
174
|
|
|
—
|
|
|
174
|
|
||
Separate account derivative liabilities
|
|
—
|
|
36,644
|
|
36,644
|
|
|
—
|
|
|
36,644
|
|
|
Total liabilities reported at fair value
|
|
$
|
—
|
|
|
36,818
|
|
|
—
|
|
|
36,818
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(a) The Company does not have any assets or liabilities measured at NAV that are included in Level 2 within this table.
|
(a)
|
Valuation of Derivatives
|
(b)
|
Valuation of Separate Account Assets and Separate Account Derivative Liabilities
|
(c)
|
Level 3 Rollforward
|
|
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
|
||||||||||
|
|
|
|
|
|
|
|
||||||||
TRS asset
|
$
|
—
|
|
—
|
|
—
|
|
1,182
|
|
—
|
|
(1,182
|
)
|
—
|
|
Total Level 3 assets
|
—
|
|
—
|
|
—
|
|
1,182
|
|
—
|
|
(1,182
|
)
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
TRS liability
|
—
|
|
—
|
|
—
|
|
(1,827
|
)
|
—
|
|
1,827
|
|
—
|
|
|
Total Level 3 liabilities
|
$
|
—
|
|
—
|
|
—
|
|
(1,827
|
)
|
—
|
|
1,827
|
|
—
|
|
|
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
|
||||||||||
|
|
|
|
|
|
|
|
||||||||
TRS asset
|
$
|
—
|
|
—
|
|
—
|
|
2,871
|
|
—
|
|
(2,871
|
)
|
—
|
|
Total Level 3 assets
|
—
|
|
—
|
|
—
|
|
2,871
|
|
—
|
|
(2,871
|
)
|
—
|
|
|
|
|
|
|
|
|
|
|
||||||||
TRS liability
|
—
|
|
|
|
(1,709
|
)
|
—
|
|
1,709
|
|
—
|
|
|||
Total Level 3 liabilities
|
$
|
—
|
|
—
|
|
—
|
|
(1,709
|
)
|
—
|
|
1,709
|
|
—
|
|
(d)
|
Transfers
|
(e)
|
Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs
|
(f)
|
Estimates
|
(g)
|
Aggregate Fair Value of Financial Instruments
|
|
|
2019
|
||||||||||||||
|
|
|
|
|
|
Fair Value
|
||||||||||
|
|
Aggregate Fair Value
|
|
Admitted Assets/
Carrying Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
||||||
Bonds
|
|
$
|
592,196
|
|
|
554,866
|
|
|
70,525
|
|
|
521,671
|
|
|
—
|
|
Cash equivalents
|
|
43,050
|
|
|
43,050
|
|
|
43,050
|
|
|
—
|
|
|
—
|
|
|
Derivative assets
|
|
283
|
|
|
283
|
|
|
—
|
|
|
283
|
|
|
—
|
|
|
Separate account assets
|
|
3,264,406
|
|
|
3,232,062
|
|
|
2,320,888
|
|
|
943,518
|
|
|
—
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposit-type contracts
|
|
$
|
4,176
|
|
|
3,604
|
|
|
—
|
|
|
—
|
|
|
4,176
|
|
Other investment contracts
|
|
519,727
|
|
|
397,644
|
|
|
—
|
|
|
—
|
|
|
519,727
|
|
|
Separate account liabilities
|
|
3,264,406
|
|
|
3,232,062
|
|
|
2,320,888
|
|
|
943,518
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(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.
|
|
|
2018
|
||||||||||||||
|
|
|
|
|
|
Fair Value
|
||||||||||
|
|
Aggregate Fair Value
|
|
Admitted Assets/
Carrying Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
||||||
Bonds
|
|
$
|
604,106
|
|
|
603,762
|
|
|
93,112
|
|
|
510,994
|
|
|
—
|
|
Cash equivalents
|
|
43,239
|
|
|
43,239
|
|
|
43,239
|
|
|
—
|
|
|
—
|
|
|
Derivative assets
|
|
190
|
|
|
190
|
|
|
—
|
|
|
190
|
|
|
—
|
|
|
Separate account assets
|
|
2,663,777
|
|
|
2,677,964
|
|
|
2,142,943
|
|
|
520,834
|
|
|
—
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposit-type contracts
|
|
$
|
3,163
|
|
|
2,879
|
|
|
—
|
|
|
—
|
|
|
3,163
|
|
Other investment contracts
|
|
564,551
|
|
|
415,179
|
|
|
—
|
|
|
—
|
|
|
564,551
|
|
|
Derivative liabilities
|
|
174
|
|
|
174
|
|
|
—
|
|
|
174
|
|
|
—
|
|
|
Separate account liabilities
|
|
2,663,777
|
|
|
2,677,964
|
|
|
2,142,943
|
|
|
520,834
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(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.
|
(7)
|
Income Taxes
|
(a)
|
Deferred Tax Assets and Liabilities
|
|
|||||||||
|
Ordinary
|
|
Capital
|
|
Total
|
||||
Total gross deferred tax assets
|
$
|
11,500
|
|
|
10
|
|
|
11,510
|
|
Statutory valuation allowance adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted gross deferred tax assets
|
11,500
|
|
|
10
|
|
|
11,510
|
|
|
Deferred tax assets nonadmitted
|
(5,083
|
)
|
|
—
|
|
|
(5,083
|
)
|
|
Subtotal net admitted deferred tax assets
|
6,417
|
|
|
10
|
|
|
6,427
|
|
|
Deferred tax liabilities
|
(2,120
|
)
|
|
—
|
|
|
(2,120
|
)
|
|
Net admitted deferred tax assets
|
$
|
4,297
|
|
|
10
|
|
|
4,307
|
|
|
|||||||||
|
Ordinary
|
|
Capital
|
|
Total
|
||||
Total gross deferred tax assets
|
$
|
7,569
|
|
|
105
|
|
|
7,674
|
|
Statutory valuation allowance adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted gross deferred tax assets
|
7,569
|
|
|
105
|
|
|
7,674
|
|
|
Deferred tax assets nonadmitted
|
(409
|
)
|
|
—
|
|
|
(409
|
)
|
|
Subtotal net admitted deferred tax assets
|
7,160
|
|
|
105
|
|
|
7,265
|
|
|
Deferred tax liabilities
|
(4,184
|
)
|
|
—
|
|
|
(4,184
|
)
|
|
Net admitted deferred tax assets
|
$
|
2,976
|
|
|
105
|
|
|
3,081
|
|
|
Change
|
||||||||
|
Ordinary
|
|
Capital
|
|
Total
|
||||
Total gross deferred tax assets
|
$
|
3,931
|
|
|
(95
|
)
|
|
3,836
|
|
Statutory valuation allowance adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted gross deferred tax assets
|
3,931
|
|
|
(95
|
)
|
|
3,836
|
|
|
Deferred tax assets nonadmitted
|
(4,674
|
)
|
|
—
|
|
|
(4,674
|
)
|
|
Subtotal net admitted deferred tax assets
|
(743
|
)
|
|
(95
|
)
|
|
(838
|
)
|
|
Deferred tax liabilities
|
2,064
|
|
|
—
|
|
|
2,064
|
|
|
Net admitted deferred tax assets
|
$
|
1,321
|
|
|
(95
|
)
|
|
1,226
|
|
|
|||||||||
|
Ordinary
|
|
Capital
|
|
Total
|
||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a)
|
$
|
—
|
|
|
10
|
|
|
10
|
|
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.)
|
4,297
|
|
|
—
|
|
|
4,297
|
|
|
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A
|
|
N/A
|
|
25,054
|
|
|||
Lesser of 11.b.i or 11.b.ii
|
4,297
|
|
|
—
|
|
|
4,297
|
|
|
Adjusted gross DTAs offset by gross DTLs (11.c)
|
2,120
|
|
|
—
|
|
|
2,120
|
|
|
Deferred tax assets admitted
|
$
|
6,417
|
|
|
10
|
|
|
6,427
|
|
|
|||||||||
|
Ordinary
|
|
Capital
|
|
Total
|
||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a)
|
$
|
—
|
|
|
—
|
|
|
—
|
|
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.)
|
2,976
|
|
|
105
|
|
|
3,081
|
|
|
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A
|
|
N/A
|
|
33,100
|
|
|||
Lesser of 11.b.i or 11.b.ii
|
2,976
|
|
|
105
|
|
|
3,081
|
|
|
Adjusted gross DTAs offset by gross DTLs (11.c)
|
4,184
|
|
|
—
|
|
|
4,184
|
|
|
Deferred tax assets admitted
|
$
|
7,160
|
|
|
105
|
|
|
7,265
|
|
|
Change
|
||||||||
|
Ordinary
|
|
Capital
|
|
Total
|
||||
Federal income taxes paid in prior years recoverable through loss carrybacks (11.a)
|
$
|
—
|
|
|
10
|
|
|
10
|
|
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.)
|
1,321
|
|
|
(105
|
)
|
|
1,216
|
|
|
Adjusted gross DTAs allowed per limitation threshold (11.b.ii)
|
N/A
|
|
N/A
|
|
(8,046
|
)
|
|||
Lesser of 11.b.i or 11.b.ii
|
1,321
|
|
|
(105
|
)
|
|
1,216
|
|
|
Adjusted gross DTAs offset by gross DTLs (11.c)
|
(2,064
|
)
|
|
—
|
|
|
(2,064
|
)
|
|
Deferred tax assets admitted
|
$
|
(743
|
)
|
|
(95
|
)
|
|
(838
|
)
|
(b)
|
Unrecognized Deferred Tax Liabilities
|
(c)
|
Current and Deferred Income Taxes
|
|
December 31
|
|
|
|
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019-2018 Change
|
|
2018-2017 Change
|
||||||
Current year federal tax (benefit) expense - ordinary income
|
$
|
(7,343
|
)
|
|
(292
|
)
|
|
3,333
|
|
|
(7,051
|
)
|
|
(3,625
|
)
|
Current year foreign tax (benefit) expense - ordinary income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Subtotal
|
(7,343
|
)
|
|
(292
|
)
|
|
3,333
|
|
|
(7,051
|
)
|
|
(3,625
|
)
|
|
Current year tax expense (benefit) - net realized capital gains (losses)
|
118
|
|
|
(335
|
)
|
|
(223
|
)
|
|
453
|
|
|
(112
|
)
|
|
Federal and foreign income taxes incurred
|
$
|
(7,225
|
)
|
|
(627
|
)
|
|
3,110
|
|
|
(6,598
|
)
|
|
(3,737
|
)
|
|
|
December 31
|
|
|
||||||
Deferred tax assets
|
|
2019
|
|
2018
|
|
Change
|
||||
Ordinary:
|
|
|
|
|
|
|
||||
Deferred acquisition costs
|
|
$
|
2,539
|
|
|
2,429
|
|
|
110
|
|
Policyholder reserves
|
|
8,168
|
|
|
5,133
|
|
|
3,035
|
|
|
Expense accruals
|
|
1
|
|
|
2
|
|
|
(1
|
)
|
|
Investments
|
|
745
|
|
|
—
|
|
|
745
|
|
|
Nonadmitted assets
|
|
47
|
|
|
5
|
|
|
42
|
|
|
Subtotal
|
|
11,500
|
|
|
7,569
|
|
|
3,931
|
|
|
Statutory valuation allowance adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Nonadmitted ordinary deferred tax assets
|
|
(5,083
|
)
|
|
(409
|
)
|
|
(4,674
|
)
|
|
Admitted ordinary tax assets
|
|
6,417
|
|
|
7,160
|
|
|
(743
|
)
|
|
|
|
|
|
|
|
—
|
|
|||
Capital:
|
|
|
|
|
|
—
|
|
|||
Impaired assets
|
|
10
|
|
|
105
|
|
|
(95
|
)
|
|
Subtotal
|
|
10
|
|
|
105
|
|
|
(95
|
)
|
|
Statutory valuation allowance adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Nonadmitted capital deferred tax assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Admitted capital deferred tax assets
|
|
10
|
|
|
105
|
|
|
(95
|
)
|
|
Admitted deferred tax assets
|
|
$
|
6,427
|
|
|
7,265
|
|
|
(838
|
)
|
|
|
December 31
|
|
|
||||||
Deferred tax liabilities
|
|
2019
|
|
2018
|
|
Change
|
||||
Ordinary:
|
|
|
|
|
|
|
||||
Investments
|
|
$
|
(231
|
)
|
|
(2,003
|
)
|
|
1,772
|
|
Policyholder reserves
|
|
(1,862
|
)
|
|
(2,173
|
)
|
|
311
|
|
|
Deferred and uncollected premiums
|
|
(27
|
)
|
|
(8
|
)
|
|
(19
|
)
|
|
Subtotal
|
|
(2,120
|
)
|
|
(4,184
|
)
|
|
2,064
|
|
|
|
|
|
|
|
|
|
||||
Capital:
|
|
|
|
|
|
|
||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Subtotal
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Deferred tax liabilities
|
|
(2,120
|
)
|
|
(4,184
|
)
|
|
2,064
|
|
|
Net deferred tax asset
|
|
$
|
4,307
|
|
|
3,081
|
|
|
1,226
|
|
|
December 31
|
|
|
|||||||
|
2019
|
|
2018
|
|
Change
|
|||||
Net deferred tax assets
|
$
|
9,390
|
|
|
3,490
|
|
|
5,900
|
|
|
Statutory valuation allowance adjustment
|
—
|
|
|
—
|
|
|
—
|
|
||
Net deferred tax assets after statutory valuation allowance
|
9,390
|
|
|
3,490
|
|
|
5,900
|
|
||
Tax effect of unrealized gains/(losses)
|
(745
|
)
|
|
1,799
|
|
|
(2,544
|
)
|
||
Change in net deferred income tax
|
|
|
|
|
$
|
3,356
|
|
(d)
|
Reconciliation of Federal Income Tax Rate to Actual Effective Rate
|
|
|
|
||||||
Federal income tax rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
Amortization of IMR
|
1.6
|
|
|
—
|
|
|
(1.1
|
)
|
Dividends received deduction
|
(4.3
|
)
|
|
(1.9
|
)
|
|
(5.3
|
)
|
Tax hedges
|
0.7
|
|
|
(0.2
|
)
|
|
—
|
|
Tax hedge reclassification
|
(73.9
|
)
|
|
(19.3
|
)
|
|
(20.0
|
)
|
Non-deductible expenses
|
0.1
|
|
|
0.1
|
|
|
(0.1
|
)
|
Change in deferred tax on non-admitted assets
|
(0.2
|
)
|
|
—
|
|
|
0.1
|
|
Prior period adjustments
|
0.9
|
|
|
(1.0
|
)
|
|
(1.8
|
)
|
Change in deferred tax impairments
|
0.5
|
|
|
(0.3
|
)
|
|
—
|
|
Tax reform revaluation (1)
|
—
|
|
|
—
|
|
|
8.8
|
|
Effective tax rate
|
(53.6
|
)%
|
|
(1.6
|
)%
|
|
15.6
|
%
|
|
|
|
|
|
|
|||
Federal and foreign income taxes incurred (2)
|
(36.8
|
)%
|
|
(0.7
|
)%
|
|
8.8
|
%
|
Change in net deferred income taxes
|
(16.8
|
)
|
|
(0.9
|
)
|
|
6.8
|
|
Effective tax rate
|
(53.6
|
)%
|
|
(1.6
|
)%
|
|
15.6
|
%
|
(1) On December 22, 2017, the United States passed the Tax Act of 2017, which reduced the corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017. As a result, the
deferred taxes recorded on the Statutory Statements of Assets, Liabilities, and Capital and Surplus were revalued to reflect the reduction in the future corporate tax rate.
|
||||||||
(2) Tax on capital gains (losses) is excluded from federal and foreign income taxes incurred and detailed in Note 5(c).
|
(e)
|
Carryforwards, Recoverable Taxes, and IRC Section 6603 Deposits
|
(f)
|
Consolidated Federal Income Tax Return
|
Members of Consolidated Tax Group
|
|
Allianz Life Insurance Company of New York
|
Allianz Life Insurance Company of Missouri
|
Allianz Life Insurance Company of North America
|
Allianz Annuity Company of Missouri
|
AZOA Services Corporation
|
Allianz Underwriters Insurance Company
|
Allianz Global Risks US Insurance Company
|
AGCS Marine Insurance Company
|
Allianz Reinsurance of America, Inc.
|
William H. McGee & Co., Inc.
|
Allianz Technology of America, Inc.
|
Fireman’s Fund Insurance Company
|
Allianz Renewable Energy Partners of America LLC
|
Fireman’s Fund Indemnity Corporation
|
Allianz Renewable Energy Partners of America 2 LLC
|
National Surety Corporation
|
PFP Holdings, Inc.
|
Chicago Insurance Company
|
AZL PF Investments, Inc.
|
Interstate Fire & Casualty Company
|
Dresdner Kleinwort Pfandbriefe Investments II, Inc.
|
Associated Indemnity Corporation
|
Allianz Fund Investments, Inc.
|
American Automobile Insurance Company
|
Yorktown Financial Companies, Inc.
|
The American Insurance Company
|
Questar Capital Corporation
|
Allianz Risk Transfer, Inc.
|
Questar Asset Management, Inc.
|
Allianz Risk Transfer (Bermuda), Ltd.
|
Questar Agency, Inc.
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||
Balance at January 1, net of reinsurance recoverables of $529, $622, and $544, respectively
|
|
$
|
3,938
|
|
|
4,867
|
|
|
3,877
|
|
Incurred related to:
|
|
|
|
|
|
|
||||
Current year
|
|
3,991
|
|
|
916
|
|
|
2,026
|
|
|
Prior years
|
|
749
|
|
|
(374
|
)
|
|
248
|
|
|
Total incurred
|
|
4,740
|
|
|
542
|
|
|
2,274
|
|
|
Paid related to:
|
|
|
|
|
|
|
||||
Current year
|
|
211
|
|
|
81
|
|
|
85
|
|
|
Prior years
|
|
1,165
|
|
|
1,390
|
|
|
1,199
|
|
|
Total paid
|
|
1,376
|
|
|
1,471
|
|
|
1,284
|
|
|
Balance at December 31, net of reinsurance recoverables of $1,214, $529, and $622, respectively
|
|
$
|
7,302
|
|
|
3,938
|
|
|
4,867
|
|
|
|
For the years ended December 31,
|
|||||
Reduction in:
|
|
2019
|
|
2018
|
|||
Aggregate reserves
|
|
$
|
5,537
|
|
|
4,473
|
|
Policy and contract claims
|
|
197
|
|
|
191
|
|
Year ended
|
|
Direct amount
|
|
Ceded to other companies
|
|
Net amount
|
||||
|
|
|
|
|
|
|||||
Life insurance in force
|
|
$
|
49,947
|
|
|
42,359
|
|
|
7,588
|
|
Premiums:
|
|
|
|
|
|
|
||||
Life
|
|
807
|
|
|
655
|
|
|
152
|
|
|
Annuities
|
|
371,966
|
|
|
—
|
|
|
371,966
|
|
|
Accident and health
|
|
3,341
|
|
|
444
|
|
|
2,897
|
|
|
Total premiums
|
|
$
|
376,114
|
|
|
1,099
|
|
|
375,015
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|||||
Life insurance in force
|
|
$
|
53,361
|
|
|
48,195
|
|
|
5,166
|
|
Premiums:
|
|
|
|
|
|
|
||||
Life
|
|
922
|
|
|
744
|
|
|
178
|
|
|
Annuities
|
|
298,637
|
|
|
—
|
|
|
298,637
|
|
|
Accident and health
|
|
3,367
|
|
|
467
|
|
|
2,900
|
|
|
Total premiums
|
|
$
|
302,926
|
|
|
1,211
|
|
|
301,715
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|||||
Life insurance in force
|
|
$
|
59,398
|
|
|
50,925
|
|
|
8,473
|
|
Premiums:
|
|
|
|
|
|
|
||||
Life
|
|
983
|
|
|
781
|
|
|
202
|
|
|
Annuities
|
|
264,826
|
|
|
—
|
|
|
264,826
|
|
|
Accident and health
|
|
3,489
|
|
|
482
|
|
|
3,007
|
|
|
Total premiums
|
|
$
|
269,298
|
|
|
1,263
|
|
|
268,035
|
|
|
|
2019
|
|
Percentage of total
|
|
2018
|
|
Percentage of total
|
||||||
Subject to discretionary withdrawal:
|
|
|
|
|
|
|
|
|
||||||
With market value adjustment
|
|
$
|
60,359
|
|
|
2
|
%
|
|
$
|
131,145
|
|
|
4
|
%
|
At book value less current surrender charges of 5% or more
|
|
738,120
|
|
|
21
|
|
|
524,493
|
|
|
17
|
|
||
At market value
|
|
2,297,154
|
|
|
65
|
|
|
2,042,626
|
|
|
68
|
|
||
Total with adjustment or at market value
|
|
3,095,633
|
|
|
88
|
|
|
2,698,264
|
|
|
89
|
|
||
At book value without adjustment (minimal or no charge or adjustment)
|
|
381,487
|
|
|
11
|
|
|
272,143
|
|
|
9
|
|
||
Not subject to discretionary withdrawal
|
|
65,387
|
|
|
2
|
|
|
46,654
|
|
|
2
|
|
||
Total gross
|
|
3,542,507
|
|
|
101
|
%
|
|
3,017,061
|
|
|
100
|
%
|
||
Reinsurance ceded
|
|
—
|
|
|
|
|
—
|
|
|
|
||||
Total net
|
|
$
|
3,542,507
|
|
|
|
|
$
|
3,017,061
|
|
|
|
Reconciliation of total annuity actuarial reserves and deposit fund liabilities:
|
|
2019
|
|
2018
|
|||
Life, Accident and Health Annual Statement:
|
|
|
|
|
|||
Annuities, net (excluding supplementary contracts with life contingencies)
|
|
$
|
397,644
|
|
|
415,179
|
|
Supplemental contracts with life contingencies, net
|
|
18,688
|
|
|
17,533
|
|
|
Deposit-type contracts
|
|
3,604
|
|
|
2,879
|
|
|
Subtotal
|
|
419,936
|
|
|
435,591
|
|
|
Separate Accounts Annual Statement:
|
|
|
|
|
|||
Annuities, net (excluding supplementary contracts with life contingencies)
|
|
3,121,880
|
|
|
2,580,835
|
|
|
Supplemental contracts with life contingencies, net
|
|
691
|
|
|
636
|
|
|
Subtotal
|
|
3,122,571
|
|
|
2,581,471
|
|
|
Total annuity actuarial reserves and deposit fund liabilities
|
|
$
|
3,542,507
|
|
|
3,017,062
|
|
|
2019
|
||||||
|
Account value
|
Cash value
|
Reserve
|
||||
Subject to discretionary withdrawal, surrender values, or policy loans:
|
|
|
|
||||
Universal life
|
$
|
51
|
|
198
|
|
726
|
|
Indexed life
|
1,623
|
|
1,471
|
|
1,571
|
|
|
Other permanent cash value life insurance
|
538
|
|
538
|
|
538
|
|
|
Not subject to discretionary withdrawal or no cash values:
|
|
|
|
||||
Term policies without cash value
|
XXX
|
XXX
|
264
|
|
|||
Miscellaneous reserves
|
XXX
|
XXX
|
272
|
|
|||
Total gross
|
2,212
|
|
2,207
|
|
3,371
|
|
|
Reinsurance ceded
|
—
|
|
—
|
|
11
|
|
|
Total net (1)
|
$
|
2,212
|
|
2,207
|
|
3,360
|
|
(1) Balances reflected within this disclosure reside in the Company's general account; the Company's separate accounts do not contain Life business.
|
|
2019
|
|
2018
|
|||
Premiums, considerations, or deposits
|
$
|
352,992
|
|
|
298,627
|
|
|
|
|
|
|||
Reserves for account, with assets at fair value
|
2,297,845
|
|
|
2,043,263
|
|
|
Reserves for account, with assets at amortized cost
|
824,726
|
|
|
538,208
|
|
|
Total reserves
|
3,122,571
|
|
|
2,581,471
|
|
|
By withdrawal characteristics:
|
|
|
|
|||
At fair value
|
2,297,154
|
|
|
2,042,626
|
|
|
At book value without MV adjustment and with current surrender charge of 5% or more
|
737,371
|
|
|
523,083
|
|
|
At book value without MV adjustment and with current surrender charge of less than 5%
|
87,355
|
|
|
15,125
|
|
|
Subtotal
|
3,121,880
|
|
|
2,580,834
|
|
|
Not subject to discretionary withdrawal
|
691
|
|
|
637
|
|
|
Total
|
$
|
3,122,571
|
|
|
2,581,471
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||
Transfers as reported in the Summary of Operations of the Separate Accounts Annual Statement:
|
|
|
|
|
|
|
||||
Transfers to separate accounts
|
|
$
|
352,992
|
|
|
298,627
|
|
|
264,695
|
|
Transfers from separate accounts
|
|
(217,517
|
)
|
|
(191,108
|
)
|
|
(209,986
|
)
|
|
Net transfers to separate accounts
|
|
135,475
|
|
|
107,519
|
|
|
54,709
|
|
|
Reconciling adjustments:
|
|
|
|
|
|
|
||||
Other adjustments
|
|
(495
|
)
|
|
202
|
|
|
(58
|
)
|
|
Differences due to correction of error (see Note 3)
|
|
—
|
|
|
—
|
|
|
6,206
|
|
|
Transfers as reported in the Statutory Statements of Operations
|
|
$
|
134,980
|
|
|
107,721
|
|
|
60,857
|
|
(13)
|
Related-Party Transactions
|
(a)
|
Real Estate
|
(b)
|
Service Fees
|
(c)
|
Reinsurance
|
(d)
|
Line of Credit Agreement
|
Send an application or additional Purchase Payment with a check: |
Send an application or general customer service without a check: |
|
REGULAR MAIL | REGULAR MAIL | |
Allianz Life Insurance Company of New York NW5990 P.O. Box 1450 Minneapolis, MN 55485-5990 |
Allianz Life Insurance Company of New York P. O. Box 561 Minneapolis, MN 55440-0561 |
|
OVERNIGHT, CERTIFIED, OR REGISTERED MAIL | OVERNIGHT, CERTIFIED, OR REGISTERED MAIL | |
Allianz Life Insurance Company of New York NW5990 1801 Parkview Drive Shoreview, MN 55126 |
Allianz Life Insurance Company of New York 5701 Golden Hills Drive Golden Valley, MN 55416-1297 |
Checks sent to the wrong address for applications or additional Purchase Payments are forwarded to the 1801 Parkview Drive address listed above, which may delay processing. |
This ‘424B3’ Filing | Date | Other Filings | ||
---|---|---|---|---|
5/1/21 | None on these Dates | |||
1/1/21 | ||||
12/31/20 | ||||
6/30/20 | ||||
5/1/20 | ||||
Filed on: | 4/28/20 | |||
4/3/20 | ||||
3/31/20 | ||||
1/6/20 | ||||
1/4/20 | ||||
1/1/20 | ||||
12/31/19 | ||||
8/24/19 | ||||
8/1/19 | ||||
4/10/19 | ||||
4/1/19 | ||||
3/31/19 | ||||
1/4/19 | ||||
1/1/19 | ||||
12/31/18 | ||||
10/1/18 | ||||
8/24/18 | ||||
5/18/18 | ||||
1/4/18 | ||||
1/1/18 | ||||
12/31/17 | ||||
12/22/17 | ||||
10/24/17 | ||||
8/24/17 | ||||
5/23/17 | ||||
1/4/17 | ||||
1/1/17 | ||||
8/24/16 | ||||
1/4/16 | ||||
1/1/16 | ||||
8/24/15 | ||||
8/21/15 | ||||
7/1/14 | ||||
4/8/14 | ||||
4/9/13 | ||||
3/31/13 | ||||
11/13/12 | ||||
2/17/12 | ||||
1/1/12 | ||||
1/1/10 | ||||
10/15/05 | ||||
5/10/05 | ||||
1/1/03 | ||||
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