Catering for the long term retirement needs of Japanese customers, the first product offers a guaranteed minimum accumulation benefit, regardless of market performance. Nikko Cordial Securities Inc. is the first distribution partner for the first product, "Single premium variable annuity (guaranteed minimum accumulation benefit type)", which will be sold at all of its branches throughout Japan from April 1st.
Allianz Life Insurance Japan launches variable annuity product
Major milestone in Japan
Uwe Michel, Chairman and Representative Director of Allianz Life Japan, said: "We are delighted to launch the first product which marks our first major milestone here in Japan. We are committed to building a long term sustainable business in Japan by providing an innovative range of variable annuities in partnership with financial institutions, and expanding our insurance product range to respond to the broad range of customer needs in Japan."
The first variable annuity product is a minimum accumulation benefit guaranteed, single premium variable annuity. It entails a 'step-up' feature for the guaranteed minimum accumulation benefit and death benefit in accordance with investment performance during the accumulation period. The investment performance during the accumulation period is evaluated daily.
When the account value reaches 110 percent, 115 percent, 120 percent, 125 percent, 130 percent, 135 percent, 140 percent, 145 percent and 150 percent of the benefit base (amount equivalent to the single premium paid), the guaranteed minimum for the accumulation benefit and death benefit is stepped up and locked in. If the account value exceeds 150 percent of the benefit base at the end of the accumulation period, the accumulation benefit becomes the same as the account value.
Uwe Michel: "committed to building business in Japan"
Efficient investment diversification
Efficient global investment diversification is provided by six separate account funds. The bond funds are managed by PIMCO Japan Ltd., an asset management company of the Allianz Group, and the equity investment funds are managed by Barclays Global Investors Japan Limited. Customers can select their investment asset allocation combining these six separate accounts. Even when the investment performance is weak, the accumulation benefit and death benefit minimum guarantee is equal to the benefit base (amount equivalent to the single premium paid).
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