Allianz Summit II(SM) Annuity Turns a ''Down'' Upside Down

2008-06-16 15:00:34 -

www.allianzlife.com - Allianz Life Eryka Jackson, 763-765-5415 eryka.jackson@allianzlife.com or Tom McFeeley, 212-798-9838 Cohn & Wolfe tom_mcfeeley@cohnwolfe.com Allianz Life Insurance Company of North America (Allianz) today introduced the ALLIANZ SUMMIT IISM annuity, an innovative fixed index deferred annuity that offers interest credits when the change in the blended index is positive or negative.

"Given recent fluctuations in the financial markets, consumers are increasingly looking for lower risk options to strengthen their financial positions and plan for the future," said Tom Burns, chief distribution officer for Allianz. "With Summit II, Allianz offers them an opportunity to increase the value of their annuity even when the blended index is down."

Summit II can create a win-win situation for the consumer. The amount of indexed interest a Summit II annuity earns during the first 10 contract years is determined through 5-year point-to-point crediting. For this method, Allianz captures the value of the blended index the day before the first day in the five-year period and on the last day during that same period.

If the index change during the five year crediting period is positive, then it is multiplied by the upside participation rate to get the indexed interest rate. In other words, if the blended index gains 20% and the participation rate is 100%, then the indexed interest credited to the annuity would be 20%.

In a period of negative change in the blended index the consumer still earns positive indexed interest. For example, if the blended index change is -20% and the downside participation is 10%, the blended index change is treated as, +20% and the accumulation value would increase by 2%. The only time there wouldn't be an indexed interest credit is if the blended index change was exactly zero.

After 10 years, consumers can choose from other options such as annuitization, move to a fixed interest account, or take their full accumulation value as a lump sum with no surrender charges. Prior to 10 years, a surrender charge would apply.

The Summit II Fixed Index Annuity Features:

-- Interest credits whether the change in the blended index is positive or negative

-- No caps or upfront fees

-- Immediate access of 10% of premium paid available in free withdrawals

-- Fixed interest crediting after the surrender charge period, guaranteed not to go below 1.5%

-- 10 year decreasing surrender charge schedule

-- Lump-sum access after 10 years

In subsequent years, this annuity offers fixed interest crediting with a minimum guaranteed rate of 1.5%. Any distributions are subject to ordinary income tax and, if taken prior to age 59 1/2, a 10% federal tax penalty. Guarantees are backed by the financial strength and claims-paying ability of Allianz. Contract C52340, availability and features vary and not available in all states.

About Allianz Life Insurance Company of North America

Founded in 1896 and based in Minneapolis, Allianz Life Insurance Company of North America provides fixed and variable annuities, life insurance policies, and long-term care insurance products in the United States. Allianz products are offered through a nationwide network of independent distribution. Allianz Life Insurance Company of North America is one of the primary companies of Allianz SE, the 14th largest corporation in the world based on revenue (Forbes, March 2008). Allianz SE employs over 177,000 people worldwide.

First Fixed Index Annuity to Offer Indexed Interest When the Index
is Up or Down