be targeted by Allianz in the rollout of its first variable annuity
(VA) product to be marketed in Europe, Invest4Life. The insurer’s
launch of VAs in Germany will be followed by the introduction of
similar products in France at the end of 2008 and Italy in the
first quarter of 2009.
A single premium VA Invest4Life was jointly developed by the
insurer’s German unit Allianz Leben and its international asset
management unit Allianz Global Investors, and draws on experience
with similar products marketed by Allianz in the US. Among the
product’s features, a policyholder can opt for immediate annuity
payments or wait for up to ten years. The waiting period can be
extended once, by up to five years.
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Invest4Life has as its target market the 55 years and older
customer that wants to continue participating in capital growth
opportunities without taking undue risks. To this end policy assets
are housed in investment funds with policyholders having the choice
between a growth-oriented investment fund and a balanced investment
fund.
In the growth orientated fund, branded as the Allianz Strategy 75,
three-quarters of the assets are invested in global equity and
one-quarter in annuities denominated in euros. In the balanced
investment fund, branded as the Allianz Strategy 50, equity and
annuities are evenly balanced.
A strong attraction of the Invest4Life product is a guaranteed
annuity payment. Payments are adjusted upwards in line with
appreciation in the underlying fund with the new annuity level
guaranteed.
In addition policyholders can draw on the capital in the fund
during the annuity phase and in the event of death, their heirs
inherit the value of the fund.
Risk management of the investment funds is undertaken by Allianz
Investment Management and Allianz’s Dresdner Bank unit.
