ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
FINANCIAL STATEMENTS
December 31, 2022
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
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Ernst & Young LLP 155 North Wacker Drive Chicago, IL 60606-1787 |
Tel: +1 312 879 2000 Fax: +1 312 879 4000 ey.com | ||
Report of Independent Registered Public Accounting Firm
The Board of Directors of Zurich American Life Insurance Company and
Policy Owners of ZALICO Variable Separate Account
Opinion on the Financial Statements
We have audited the accompanying statements of assets, liabilities and policy owners equity of each of the subaccounts listed in the Appendix that comprise ZALICO Variable Separate Account (the Separate Account), as of December 31, 2022, the related statement of operations and the statements of changes in policy owners equity for each of the periods indicated in the Appendix, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of each subaccount as of December 31, 2022, the results of its operations and changes in its policy owners equity for each of the periods indicated in the Appendix, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Separate Accounts management. Our responsibility is to express an opinion on each of the subaccounts financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the fund companies or their transfer agents, as applicable. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Separate Accounts Auditor since 2021.
/s/ Ernst & Young LLP
April 24, 2023
A member firm of Ernst & Young Global Limited | 1 |
Appendix
Subaccounts comprising ZALICO Variable Separate Account
Subaccounts | Statement of Operations | Statements of Changes in Policy Owners Equity | ||
Alger Balanced-Class I-2 Alger Capital Appreciation-Class I-2 Alger Growth & Income-Class I-2 Alger Large Cap Growth-Class I-2 Alger Mid Cap Growth-Class I-2 American Century VP Disciplined Core Value American Century VP International American Century VP Ultra American Century VP Value AST International Growth AST Large-Cap Value Portfolio AST Mid-Cap Growth Portfolio AST Small Cap Growth AST T Rowe Price Asset Allocation BNY Mellon Investment Portfolios MidCap Stock Portfolio Initial Shares BNY Mellon Stock Index Fund Inc. Initial Shares BNY Mellon Sustainable U.S. Equity Portfolio Inc. Initial Shares BNY Mellon VIF Appreciation Portfolio-Initial Shares BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares DWS Capital Growth VIP A DWS Core Equity VIP A DWS Core Equity VIP B DWS CROCI® International VIP A DWS CROCI® International VIP B DWS Global Small Cap VIP A DWS CROCI® U.S. VIP A DWS Global Income Builder VIP A DWS Government Money Market VIP A DWS High Income VIP A DWS International Growth VIP A DWS Small Mid Cap Growth VIP A DWS Small Mid Cap Value VIP A DWS Equity 500 Index VIP A DWS Small Cap Index VIP A Fidelity VIP II Contrafund Fidelity VIP Equity Income Fidelity VIP Growth Fidelity VIP Growth Opportunities |
For the year ended December 31, 2022 |
For each of the two years in the period ended December 31, 2022 |
A member firm of Ernst & Young Global Limited | 2 |
Subaccounts | Statement of Operations | Statements of Changes in Policy Owners Equity | ||
Fidelity VIP High Income Fidelity VIP II Index 500 Fidelity VIP Overseas FTVIP Templeton Developing Markets Fund CL 2 FTVIP Templeton Foreign Fund CL 2 FTVIP Templeton Global Bond Fund CL 2 |
For the year ended December 31, 2022 |
For each of the two years in the period ended December 31, 2022 | ||
Invesco V.I. Discovery Mid Cap Growth Fund Series I Invesco V.I. Diversified Dividend Fund Series I Invesco V.I. Technology Fund Series I Janus Henderson Balanced Portfolio I-S Janus Henderson Enterprise Portfolio I-S Janus Henderson Flexible Bond Portfolio I-S Janus Henderson Forty Portfolio I-S Janus Henderson Global Research Portfolio I-S Janus Henderson Overseas Portfolio I-S Janus Henderson Research Portfolio I-S PIMCO PVIT International Bond (U.S. Dollar- Hedged) Admin PIMCO PVIT Low Duration Portfolio Admin |
For the year ended December 31, 2022 |
For each of the two years in the period ended December 31, 2022 | ||
AST BlackRock Low Duration Bond AST BlackRock Loomis Sayles Bond Portfolio AST T Rowe Price Large-Cap Value Portfolio |
For the period ended February 11, 2022 |
For the period ended February 11, 2022 and the year ended December 31, 2021 | ||
AST Core Fixed Income Portfolio |
For the period from February 11, 2022 through December 31, 2022 |
For the period from February 11, 2022 through December 31, 2022 | ||
AST Loomis Sayles Large-Cap Growth Portfolio |
For the period ended June 10, 2022 |
For the period ended June 10, 2022 and the year ended December 31, 2021 | ||
AST Large-Cap Growth Portfolio |
For the period from June 10, 2022 through December 31, 2022 |
For the period from June 10, 2022 through December 31, 2022 | ||
Invesco V.I. Managed Volatility Fund |
N/A |
For the period ended April 30, 2021 | ||
Invesco V.I. Equity and Income Fund Series I |
For the year ended December 31, 2022 |
For the year ended December 31, 2022 and for the period from April 30, 2021 through December 31, 2021. | ||
DWS Bond VIP A DWS Global Equity VIP A |
N/A |
For the period ended October 28, 2021 |
A member firm of Ernst & Young Global Limited | 3 |
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Assets, Liabilities and Policy Owners Equity
December 31, 2022
Alger Portfolios | American Century Variable Portfolios, Inc. | |||||||||||||||||||||||||||||||||||
Alger Balanced- Class I-2 |
Alger Capital Appreciation -Class I-2 |
Alger Growth & Income- Class I-2 |
Alger Large Cap Growth- Class I-2 |
Alger Mid Cap Growth- Class I-2 |
American Century VP Disciplined Core Value |
American Century VP International |
American Century VP Ultra |
American Century VP Value |
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ASSETS |
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Investments in underlying portfolio funds, at current fair value |
$ | 511,893 | $ | 459,316 | $ | 848,735 | $ | 728,712 | $ | 1,234,149 | $ | 83,807 | $ | 37,842 | $ | 101,961 | $ | 349,536 | ||||||||||||||||||
Dividends and other receivables |
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Total assets |
511,893 | 459,316 | 848,735 | 728,712 | 1,234,149 | 83,807 | 37,842 | 101,961 | 349,536 | |||||||||||||||||||||||||||
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LIABILITIES AND POLICY OWNERS EQUITY |
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Liabilities - other payables |
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Policy owners equity |
$ | 511,893 | $ | 459,316 | $ | 848,735 | $ | 728,712 | $ | 1,234,149 | $ | 83,807 | $ | 37,842 | $ | 101,961 | $ | 349,536 | ||||||||||||||||||
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Units Outstanding |
18,939 | 11,237 | 19,344 | 17,532 | 33,342 | 2,298 | 1,693 | 1,807 | 9,552 | |||||||||||||||||||||||||||
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Shares Owned in Each Portfolio |
31,213 | 8,405 | 36,726 | 15,488 | 90,216 | 11,689 | 3,971 | 5,272 | 28,075 | |||||||||||||||||||||||||||
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Fair Value per Share |
$ | 16.40 | $ | 54.65 | $ | 23.11 | $ | 47.05 | $ | 13.68 | $ | 7.17 | $ | 9.53 | $ | 19.34 | $ | 12.45 | ||||||||||||||||||
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See accompanying notes to financial statements.
4
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Assets, Liabilities and Policy Owners Equity (continued)
December 31, 2022
Advanced Series Trust | ||||||||||||||||||||||||||||||||||||
AST BlackRock Low Duration Bond |
AST BlackRock Loomis Sayles Bond Portfolio |
AST Core Fixed Income Portfolio |
AST International Growth |
AST Large- Cap Growth Portfolio |
AST Large- Cap Value Portfolio |
AST Loomis Sayles Large-Cap Growth Portfolio |
AST Mid- Cap Growth Portfolio |
AST Small Cap Growth |
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ASSETS |
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Investments in underlying portfolio funds, at current fair value |
$ | | $ | | $ | 384,928 | $ | 508,068 | $ | 9,257,796 | $ | 3,033,098 | $ | | $ | 2,094,299 | $ | 273,603 | ||||||||||||||||||
Dividends and other receivables |
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Total assets |
| | 384,928 | 508,068 | 9,257,796 | 3,033,098 | | 2,094,299 | 273,603 | |||||||||||||||||||||||||||
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LIABILITIES AND POLICY OWNERS EQUITY |
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Liabilities - other payables |
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Policy owners equity |
$ | | $ | | $ | 384,928 | $ | 508,068 | $ | 9,257,796 | $ | 3,033,098 | $ | | $ | 2,094,299 | $ | 273,603 | ||||||||||||||||||
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Units Outstanding |
| | 44,163 | 21,755 | 975,575 | 48,266 | | 29,176 | 4,225 | |||||||||||||||||||||||||||
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Shares Owned in Each Portfolio |
| | 30,943 | 23,489 | 183,432 | 69,582 | | 173,369 | 4,591 | |||||||||||||||||||||||||||
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Fair Value per Share |
$ | | $ | | $ | 12.44 | $ | 21.63 | $ | 50.47 | $ | 43.59 | $ | | $ | 12.08 | $ | 59.60 | ||||||||||||||||||
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See accompanying notes to financial statements.
5
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Assets, Liabilities and Policy Owners Equity (continued)
December 31, 2022
Advanced Series Trust | BNY Mellon Investment Portfolio |
BNY Mellon Stock Index Fund |
BNY Mellon Sustainable U.S. Equity Fund |
BNY Mellon Variable Investment Fund |
Deutsche DWS Variable Series I |
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AST T Rowe Price Asset Allocation |
AST T Rowe Price Large- Cap Value Portfolio |
BNY Mellon Investment Portfolios MidCap Stock Portfolio - Initial Shares |
BNY Mellon Stock Index Fund Inc. - Initial Shares |
BNY Mellon Sustainable U.S. Equity Portfolio Inc. - Initial Shares |
BNY Mellon VIF Appreciation Portfolio- Initial Shares |
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Shares |
DWS Capital Growth VIP A |
DWS Core Equity VIP A |
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ASSETS |
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Investments in underlying portfolio funds, at current fair value |
$ | 1,034,726 | $ | | $ | 111,270 | $ | 679,280 | $ | 162,107 | $ | 213,035 | $ | 761,742 | $ | 5,072,412 | $ | 1,539,404 | ||||||||||||||||||
Dividends and other receivables |
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Total assets |
1,034,726 | | 111,270 | 679,280 | 162,107 | 213,035 | 761,742 | 5,072,412 | 1,539,404 | |||||||||||||||||||||||||||
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LIABILITIES AND POLICY OWNERS EQUITY |
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Liabilities - other payables |
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Policy owners equity |
$ | 1,034,726 | $ | | $ | 111,270 | $ | 679,280 | $ | 162,107 | $ | 213,035 | $ | 761,742 | $ | 5,072,412 | $ | 1,539,404 | ||||||||||||||||||
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Units Outstanding |
19,624 | | 2,612 | 15,250 | 4,823 | 5,107 | 22,376 | 122,713 | 38,090 | |||||||||||||||||||||||||||
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Shares Owned in Each Portfolio |
29,180 | | 6,760 | 11,750 | 3,885 | 6,672 | 19,338 | 177,481 | 147,030 | |||||||||||||||||||||||||||
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Fair Value per Share |
$ | 35.46 | $ | | $ | 16.46 | $ | 57.81 | $ | 41.73 | $ | 31.93 | $ | 39.39 | $ | 28.58 | $ | 10.47 | ||||||||||||||||||
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See accompanying notes to financial statements.
6
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Assets, Liabilities and Policy Owners Equity (continued)
December 31, 2022
Deutsche DWS Variable Series I | Deutsche DWS Variable Series II | |||||||||||||||||||||||||||||||||||
DWS Core Equity VIP B |
DWS CROCI® International VIP A |
DWS CROCI® International VIP B |
DWS Global Small Cap VIP A |
DWS CROCI® U.S. VIP A |
DWS Global Income Builder VIP A |
DWS Government Money Market VIP A |
DWS High Income VIP A |
DWS International Growth VIP A |
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ASSETS |
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Investments in underlying portfolio funds, at current fair value |
$ | 193,886 | $ | 233,741 | $ | 235,287 | $ | 250,905 | $ | 1,810,931 | $ | 1,164,364 | $ | 2,646,298 | $ | 618,664 | $ | 3,657 | ||||||||||||||||||
Dividends and other receivables |
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Total assets |
193,886 | 233,741 | 235,287 | 250,905 | 1,810,931 | 1,164,364 | 2,646,325 | 618,664 | 3,657 | |||||||||||||||||||||||||||
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LIABILITIES AND POLICY OWNERS EQUITY |
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Liabilities - other payables |
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Policy owners equity |
$ | 193,886 | $ | 233,741 | $ | 235,287 | $ | 250,905 | $ | 1,810,931 | $ | 1,164,364 | $ | 2,646,325 | $ | 618,664 | $ | 3,657 | ||||||||||||||||||
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Units Outstanding |
5,282 | 15,977 | 14,281 | 8,283 | 277,197 | 129,316 | 1,137,825 | 91,306 | 151 | |||||||||||||||||||||||||||
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Shares Owned in Each Portfolio |
18,536 | 36,016 | 36,198 | 29,449 | 137,818 | 57,585 | 2,646,298 | 115,855 | 279 | |||||||||||||||||||||||||||
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Fair Value per Share |
$ | 10.46 | $ | 6.49 | $ | 6.50 | $ | 8.52 | $ | 13.14 | $ | 20.22 | $ | 1.00 | $ | 5.34 | $ | 13.11 | ||||||||||||||||||
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See accompanying notes to financial statements.
7
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Assets, Liabilities and Policy Owners Equity (continued)
December 31, 2022
Deutsche DWS Variable Series II |
Deutsche DWS Investments VIT Funds |
Fidelity Variable Insurance Products Funds | ||||||||||||||||||||||||||||||||||
DWS Small Mid Cap Growth VIP A |
DWS Small Mid Cap Value VIP A |
DWS Equity 500 Index VIP A |
DWS Small Cap Index VIP A |
Fidelity VIP II Contrafund |
Fidelity VIP Equity Income |
Fidelity VIP Growth |
Fidelity VIP Growth Opportunities |
Fidelity VIP High Income |
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ASSETS |
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Investments in underlying portfolio funds, at current fair value |
$ | 3,508,797 | $ | 75,850 | $ | 649,767 | $ | 135,918 | $ | 3,061,300 | $ | 1,152,505 | $ | 982,557 | $ | 1,349,555 | $ | 139,226 | ||||||||||||||||||
Dividends and other receivables |
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Total assets |
3,508,797 | 75,850 | 649,767 | 135,918 | 3,061,300 | 1,152,505 | 982,557 | 1,349,555 | 139,226 | |||||||||||||||||||||||||||
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LIABILITIES AND POLICY OWNERS EQUITY |
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Liabilities - other payables |
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Policy owners equity |
$ | 3,508,797 | $ | 75,850 | $ | 649,767 | $ | 135,918 | $ | 3,061,300 | $ | 1,152,505 | $ | 982,557 | $ | 1,349,555 | $ | 139,226 | ||||||||||||||||||
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Units Outstanding |
611,253 | 1,336 | 17,898 | 4,109 | 24,234 | 22,261 | 17,335 | 15,927 | 6,475 | |||||||||||||||||||||||||||
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Shares Owned in Each Portfolio |
293,133 | 5,958 | 28,288 | 11,214 | 80,816 | 48,918 | 13,740 | 32,892 | 31,571 | |||||||||||||||||||||||||||
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Fair Value per Share |
$ | 11.97 | $ | 12.73 | $ | 22.97 | $ | 12.12 | $ | 37.88 | $ | 23.56 | $ | 71.51 | $ | 41.03 | $ | 4.41 | ||||||||||||||||||
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See accompanying notes to financial statements.
8
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Assets, Liabilities and Policy Owners Equity (continued)
December 31, 2022
Fidelity Variable Insurance Products Funds |
Franklin Templeton Variable Insurance Products Trust |
Invesco Variable Insurance Funds | ||||||||||||||||||||||||||||||||||
Fidelity VIP II Index 500 |
Fidelity VIP Overseas |
FTVIP Templeton Developing Markets Fund CL 2 |
FTVIP Templeton Foreign Fund CL 2 |
FTVIP Templeton Global Bond Fund CL 2 |
Invesco V.I. Discovery Mid Cap Growth Fund Series I |
Invesco V.I. Diversified Dividend Fund Series I |
Invesco V.I. Equity and Income Fund Series I |
Invesco V.I. Technology Fund Series I |
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ASSETS |
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Investments in underlying portfolio funds, at current fair value |
$ | 2,867,947 | $ | 76,246 | $ | 114,477 | $ | 54,595 | $ | 40,546 | $ | 62,753 | $ | 78,928 | $ | 147 | $ | 184,690 | ||||||||||||||||||
Dividends and other receivables |
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Total assets |
2,867,947 | 76,246 | 114,477 | 54,595 | 40,546 | 62,753 | 78,928 | 147 | 184,690 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
LIABILITIES AND POLICY OWNERS EQUITY |
||||||||||||||||||||||||||||||||||||
Liabilities - other payables |
| | | | | | | | | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Policy owners equity |
$ | 2,867,947 | $ | 76,246 | $ | 114,477 | $ | 54,595 | $ | 40,546 | $ | 62,753 | $ | 78,928 | $ | 147 | $ | 184,690 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Units Outstanding |
5,315 | 3,619 | 7,040 | 3,564 | 2,899 | 5,204 | 2,946 | 15 | 4,212 | |||||||||||||||||||||||||||
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Shares Owned in Each Portfolio |
7,652 | 3,514 | 15,345 | 4,486 | 3,249 | 1,130 | 3,158 | 9 | 14,670 | |||||||||||||||||||||||||||
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|
|
|
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|
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|
|
|
|
|||||||||||||||||||
Fair Value per Share |
$ | 374.80 | $ | 21.70 | $ | 7.46 | $ | 12.17 | $ | 12.48 | $ | 55.53 | $ | 24.99 | $ | 16.33 | $ | 12.59 | ||||||||||||||||||
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|
|
|
|
|
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|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
9
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Assets, Liabilities and Policy Owners Equity (continued)
December 31, 2022
Janus Aspen Series | PIMCO Variable Insurance Trust |
|||||||||||||||||||||||||||||||||||
Janus Henderson Balanced Portfolio I-S |
Janus Henderson Enterprise Portfolio I-S |
Janus Henderson Flexible Bond Portfolio I-S |
Janus Henderson Forty Portfolio I-S |
Janus Henderson Global Research Portfolio I-S |
Janus Henderson Overseas Portfolio I-S |
Janus Henderson Research Portfolio I-S |
PIMCO PVIT International Bond (U.S. Dollar- Hedged) - Admin |
PIMCO PVIT Low Duration Portfolio - Admin |
||||||||||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||||||||||||||
Investments in underlying portfolio funds, at current fair value |
$ | 1,916,256 | $ | 1,453,108 | $ | 75,015 | $ | 2,147,836 | $ | 921,069 | $ | 583,267 | $ | 1,248,756 | $ | 67,888 | $ | 47,469 | ||||||||||||||||||
Dividends and other receivables |
| | | | | | | | | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total assets |
1,916,256 | 1,453,108 | 75,015 | 2,147,836 | 921,069 | 583,267 | 1,248,756 | 67,888 | 47,469 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
LIABILITIES AND POLICY OWNERS EQUITY |
||||||||||||||||||||||||||||||||||||
Liabilities - other payables |
| | | | | | | | | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|||||||||||||||||||
Policy owners equity |
$ | 1,916,256 | $ | 1,453,108 | $ | 75,015 | $ | 2,147,836 | $ | 921,069 | $ | 583,267 | $ | 1,248,756 | $ | 67,888 | $ | 47,469 | ||||||||||||||||||
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|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Units Outstanding |
58,131 | 25,223 | 4,696 | 17,871 | 28,892 | 28,595 | 29,242 | 3,093 | 2,980 | |||||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Shares Owned in Each Portfolio |
47,847 | 20,884 | 7,547 | 63,377 | 18,414 | 15,142 | 39,543 | 7,139 | 5,007 | |||||||||||||||||||||||||||
|
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|
|
|
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|
|
|
|
|||||||||||||||||||
Fair Value per Share |
$ | 40.05 | $ | 69.58 | $ | 9.94 | $ | 33.89 | $ | 50.02 | $ | 38.52 | $ | 31.58 | $ | 9.51 | $ | 9.48 | ||||||||||||||||||
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|
|
|
|
See accompanying notes to financial statements.
10
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
For the year ended December 31, 2022
Alger Portfolios | American Century Variable Portfolios, Inc. | |||||||||||||||||||||||||||||||||||
Alger Balanced- Class I-2 |
Alger Capital Appreciation -Class I-2 |
Alger Growth & Income- Class I-2 |
Alger Large Cap Growth- Class I-2 |
Alger Mid Cap Growth- Class I-2 |
American Century VP Disciplined Core Value |
American Century VP International |
American Century VP Ultra |
American Century VP Value |
||||||||||||||||||||||||||||
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
||||||||||||||||||||||||||||
REVENUE |
||||||||||||||||||||||||||||||||||||
Dividend income |
$ | 6,201 | $ | | $ | 12,737 | $ | | $ | | $ | 1,548 | $ | 535 | $ | | $ | 7,369 | ||||||||||||||||||
EXPENSES |
||||||||||||||||||||||||||||||||||||
Administration, mortality and expense risk charges |
2,809 | 4,858 | 3,249 | 3,110 | 5,038 | 351 | 114 | 461 | 1,228 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net investment income (loss) |
3,392 | (4,858 | ) | 9,488 | (3,110 | ) | (5,038 | ) | 1,197 | 421 | (461 | ) | 6,141 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on redemption of investments |
11,860 | 4,602 | 57,570 | (880 | ) | 5,453 | (258 | ) | 1,157 | 23,467 | 26,856 | |||||||||||||||||||||||||
Capital gain distributions |
22,833 | 41,270 | 56,584 | 40,471 | 45,249 | 21,219 | 5,636 | 13,695 | 28,447 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net realized gain (loss) on investments |
34,693 | 45,872 | 114,154 | 39,591 | 50,702 | 20,961 | 6,793 | 37,162 | 55,303 | |||||||||||||||||||||||||||
Change in unrealized depreciation on investments |
(109,716 | ) | (312,776 | ) | (280,624 | ) | (491,385 | ) | (771,167 | ) | (34,754 | ) | (19,330 | ) | (89,998 | ) | (60,913 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(75,023 | ) | (266,904 | ) | (166,470 | ) | (451,794 | ) | (720,465 | ) | (13,793 | ) | (12,537 | ) | (52,836 | ) | (5,610 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
$ | (71,631 | ) | $ | (271,762 | ) | $ | (156,982 | ) | $ | (454,904 | ) | $ | (725,503 | ) | $ | (12,596 | ) | $ | (12,116 | ) | $ | (53,297 | ) | $ | 531 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
11
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Operations (continued)
For the year ended December 31, 2022
Advanced Series Trust | ||||||||||||||||||||||||||||||||||||
AST BlackRock Low Duration Bond |
AST BlackRock Loomis Sayles Bond Portfolio |
AST Core Fixed Income Portfolio |
AST International Growth |
AST Large- Cap Growth Portfolio |
AST Large- Cap Value Portfolio |
AST Loomis Sayles Large- Cap Growth Portfolio |
AST Mid- Cap Growth Portfolio |
AST Small Cap Growth |
||||||||||||||||||||||||||||
1/1/2022 | 1/1/2022 | 2/11/2022 | 1/1/2022 | 6/10/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
2/11/2022 | 2/11/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 6/10/2022 | 12/31/2022 | 12/31/2022 | ||||||||||||||||||||||||||||
REVENUE |
||||||||||||||||||||||||||||||||||||
Dividend income |
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||||
EXPENSES |
||||||||||||||||||||||||||||||||||||
Administration, mortality and expense risk charges |
165 | 367 | 3,463 | 4,994 | 49,710 | 25,895 | 48,877 | 21,141 | 2,784 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net investment income (loss) |
(165 | ) | (367 | ) | (3,463 | ) | (4,994 | ) | (49,710 | ) | (25,895 | ) | (48,877 | ) | (21,141 | ) | (2,784 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on redemption of investments |
7,011 | 49,492 | (9,566 | ) | 24,386 | (2,062 | ) | 149,393 | 5,948,815 | 88,440 | 24,657 | |||||||||||||||||||||||||
Capital gain distributions |
| | | | | | | | | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net realized gain (loss) on investments |
7,011 | 49,492 | (9,566 | ) | 24,386 | (2,062 | ) | 149,393 | 5,948,815 | 88,440 | 24,657 | |||||||||||||||||||||||||
Change in unrealized depreciation on investments |
(9,441 | ) | (61,246 | ) | (52,123 | ) | (238,571 | ) | (449,004 | ) | (195,701 | ) | (9,878,037 | ) | (1,081,627 | ) | (137,850 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(2,430 | ) | (11,754 | ) | (61,689 | ) | (214,185 | ) | (451,066 | ) | (46,308 | ) | (3,929,222 | ) | (993,187 | ) | (113,193 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
$ | (2,595 | ) | $ | (12,121 | ) | $ | (65,152 | ) | $ | (219,179 | ) | $ | (500,776 | ) | $ | (72,203 | ) | $ | (3,978,099 | ) | $ | (1,014,328 | ) | $ | (115,977 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
12
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Operations (continued)
For the year ended December 31, 2022
Advanced Series Trust | BNY Mellon Investment Portfolio |
BNY Mellon Stock Index Fund |
BNY Mellon Sustainable U.S. Equity Fund |
BNY Mellon Variable Investment Fund |
Deutsche DWS Variable Series I |
|||||||||||||||||||||||||||||||
AST T Rowe Price Asset Allocation |
AST T Rowe Price Large- Cap Value Portfolio |
BNY Mellon Investment Portfolios MidCap Stock Portfolio - Initial Shares |
BNY Mellon Stock Index Fund Inc. - Initial Shares |
BNY Mellon Sustainable U.S. Equity Portfolio Inc. - Initial Shares |
BNY Mellon VIF Appreciation Portfolio- Initial Shares |
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Shares |
DWS Capital Growth VIP A |
DWS Core Equity VIP A |
||||||||||||||||||||||||||||
1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2022 | 2/11/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | ||||||||||||||||||||||||||||
REVENUE |
||||||||||||||||||||||||||||||||||||
Dividend income |
$ | | $ | | $ | 833 | $ | 10,488 | $ | 915 | $ | 1,511 | $ | | $ | 5,496 | $ | 13,115 | ||||||||||||||||||
EXPENSES |
||||||||||||||||||||||||||||||||||||
Administration, mortality and expense risk charges |
10,032 | 1,978 | 1,031 | 2,860 | 1,008 | 810 | 2,653 | 52,786 | 12,539 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net investment income (loss) |
(10,032 | ) | (1,978 | ) | (198 | ) | 7,628 | (93 | ) | 701 | (2,653 | ) | (47,290 | ) | 576 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on redemption of investments |
43,424 | 553,482 | (189 | ) | 82,061 | 1,238 | (10,729 | ) | (3,790 | ) | 177,975 | 34,518 | ||||||||||||||||||||||||
Capital gain distributions |
| | 28,088 | 68,350 | 12,527 | 68,709 | 169,544 | 968,316 | 231,367 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net realized gain (loss) on investments |
43,424 | 553,482 | 27,899 | 150,411 | 13,765 | 57,980 | 165,754 | 1,146,291 | 265,885 | |||||||||||||||||||||||||||
Change in unrealized depreciation on investments |
(256,052 | ) | (538,520 | ) | (47,175 | ) | (329,366 | ) | (63,160 | ) | (110,369 | ) | (322,928 | ) | (3,532,097 | ) | (572,157 | ) | ||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(212,628 | ) | 14,962 | (19,276 | ) | (178,955 | ) | (49,395 | ) | (52,389 | ) | (157,174 | ) | (2,385,806 | ) | (306,272 | ) | |||||||||||||||||||
|
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|
|
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|
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
$ | (222,660 | ) | $ | 12,984 | $ | (19,474 | ) | $ | (171,327 | ) | $ | (49,488 | ) | $ | (51,688 | ) | $ | (159,827 | ) | $ | (2,433,096 | ) | $ | (305,696 | ) | ||||||||||
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
13
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Operations (continued)
For the year ended December 31, 2022
Deutsche DWS Variable Series I | Deutsche DWS Variable Series II | |||||||||||||||||||||||||||||||||||
DWS Core Equity VIP B |
DWS CROCI® International VIP A |
DWS CROCI® International VIP B |
DWS Global Small Cap VIP A |
DWS CROCI® U.S. VIP A |
DWS Global Income Builder VIP A |
DWS Government Money Market VIP A |
DWS High Income VIP A |
DWS International Growth VIP A |
||||||||||||||||||||||||||||
1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | ||||||||||||||||||||||||||||
REVENUE |
||||||||||||||||||||||||||||||||||||
Dividend income |
$ | 997 | $ | 7,639 | $ | 7,274 | $ | 1,505 | $ | 34,400 | $ | 37,754 | $ | 29,607 | $ | 33,829 | $ | 42 | ||||||||||||||||||
EXPENSES |
||||||||||||||||||||||||||||||||||||
Administration, mortality and expense risk charges |
1,884 | 1,660 | 2,202 | 2,436 | 17,072 | 11,083 | 21,007 | 5,735 | 36 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net investment income (loss) |
(887 | ) | 5,979 | 5,072 | (931 | ) | 17,328 | 26,671 | 8,600 | 28,094 | 6 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on redemption of investments |
3,382 | (4,480 | ) | (3,023 | ) | (1,769 | ) | 9,583 | (7,851 | ) | | (6,188 | ) | 26 | ||||||||||||||||||||||
Capital gain distributions |
30,364 | | | 48,311 | 28,739 | 109,534 | | | 54 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net realized gain (loss) on investments |
33,746 | (4,480 | ) | (3,023 | ) | 46,542 | 38,322 | 101,683 | | (6,188 | ) | 80 | ||||||||||||||||||||||||
Change in unrealized depreciation on investments |
(73,249 | ) | (39,345 | ) | (43,410 | ) | (128,360 | ) | (409,177 | ) | (360,855 | ) | | (90,395 | ) | (1,607 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(39,503 | ) | (43,825 | ) | (46,433 | ) | (81,818 | ) | (370,855 | ) | (259,172 | ) | | (96,583 | ) | (1,527 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
$ | (40,390 | ) | $ | (37,846 | ) | $ | (41,361 | ) | $ | (82,749 | ) | $ | (353,527 | ) | $ | (232,501 | ) | $ | 8,600 | $ | (68,489 | ) | $ | (1,521 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
14
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Operations (continued)
For the year ended December 31, 2022
Deutsche DWS Variable Series II |
Deutsche DWS Investments VIT Funds |
Fidelity Variable Insurance Products Funds | ||||||||||||||||||||||||||||||||||
DWS Small Mid Cap Growth VIP A |
DWS Small Mid Cap Value VIP A |
DWS Equity 500 Index VIP A |
DWS Small Cap Index VIP A |
Fidelity VIP II Contrafund |
Fidelity VIP Equity Income |
Fidelity VIP Growth |
Fidelity VIP Growth Opportunities |
Fidelity VIP High Income |
||||||||||||||||||||||||||||
1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | ||||||||||||||||||||||||||||
REVENUE |
||||||||||||||||||||||||||||||||||||
Dividend income |
$ | | $ | 683 | $ | 8,633 | $ | 1,289 | $ | 17,234 | $ | 22,189 | $ | 7,453 | $ | | $ | 7,466 | ||||||||||||||||||
EXPENSES |
||||||||||||||||||||||||||||||||||||
Administration, mortality and expense risk charges |
32,322 | 717 | 6,384 | 463 | 30,978 | 7,209 | 4,207 | 14,818 | 621 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net investment income (loss) |
(32,322 | ) | (34 | ) | 2,249 | 826 | (13,744 | ) | 14,980 | 3,246 | (14,818 | ) | 6,845 | |||||||||||||||||||||||
|
|
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|
|
|||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on redemption of investments |
2,410 | 210 | 59,313 | (948 | ) | 116,734 | 14,586 | 64,043 | 76,754 | (4,697 | ) | |||||||||||||||||||||||||
Capital gain distributions |
478,873 | 1,176 | 40,221 | 24,250 | 163,754 | 38,979 | 90,020 | 326,881 | | |||||||||||||||||||||||||||
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|
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|
|
|
|
|||||||||||||||||||
Net realized gain (loss) on investments |
481,283 | 1,386 | 99,534 | 23,302 | 280,488 | 53,565 | 154,063 | 403,635 | (4,697 | ) | ||||||||||||||||||||||||||
Change in unrealized depreciation on investments |
(1,894,154 | ) | (16,457 | ) | (261,586 | ) | (59,078 | ) | (1,457,129 | ) | (141,518 | ) | (525,012 | ) | (1,280,129 | ) | (21,073 | ) | ||||||||||||||||||
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|
|
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|
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|
|
|
|
|||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(1,412,871 | ) | (15,071 | ) | (162,052 | ) | (35,776 | ) | (1,176,641 | ) | (87,953 | ) | (370,949 | ) | (876,494 | ) | (25,770 | ) | ||||||||||||||||||
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|
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|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
$ | (1,445,193 | ) | $ | (15,105 | ) | $ | (159,803 | ) | $ | (34,950 | ) | $ | (1,190,385 | ) | $ | (72,973 | ) | $ | (367,703 | ) | $ | (891,312 | ) | $ | (18,925 | ) | |||||||||
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|
|
See accompanying notes to financial statements.
15
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Operations (continued)
For the year ended December 31, 2022
Fidelity Variable Insurance Products Funds |
Franklin Templeton Variable Insurance Products Trust |
Invesco Variable Insurance Funds | ||||||||||||||||||||||||||||||||||
Fidelity VIP II Index 500 |
Fidelity VIP Overseas |
FTVIP Templeton Developing Markets Fund CL 2 |
FTVIP Templeton Foreign Fund CL 2 |
FTVIP Templeton Global Bond Fund CL 2 |
Invesco V.I. Discovery Mid Cap Growth Fund Series I |
Invesco V.I. Diversified Dividend Fund Series I |
Invesco V.I. Equity and Income Fund Series I |
Invesco V.I. Technology Fund Series I |
||||||||||||||||||||||||||||
1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | ||||||||||||||||||||||||||||
REVENUE |
||||||||||||||||||||||||||||||||||||
Dividend income |
$ | 45,891 | $ | 862 | $ | 3,125 | $ | 1,669 | $ | | $ | | $ | 1,574 | $ | 3 | $ | | ||||||||||||||||||
EXPENSES |
||||||||||||||||||||||||||||||||||||
Administration, mortality and expense risk charges |
28,588 | 253 | 765 | 180 | 164 | 306 | 328 | 1 | 824 | |||||||||||||||||||||||||||
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|
|
|
|
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|
|
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|
|
|
|
|
|
|||||||||||||||||||
Net investment income (loss) |
17,303 | 609 | 2,360 | 1,489 | (164 | ) | (306 | ) | 1,246 | 2 | (824 | ) | ||||||||||||||||||||||||
|
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|
|||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on redemption of investments |
215,707 | 151 | (2,732 | ) | (2,706 | ) | (809 | ) | (1,588 | ) | 6,723 | | 5,714 | |||||||||||||||||||||||
Capital gain distributions |
25,186 | 722 | 9,029 | | | 21,402 | 10,327 | 20 | 83,049 | |||||||||||||||||||||||||||
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|
|
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|
|
|
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|
|
|
|
|||||||||||||||||||
Net realized gain (loss) on investments |
240,893 | 873 | 6,297 | (2,706 | ) | (809 | ) | 19,814 | 17,050 | 20 | 88,763 | |||||||||||||||||||||||||
Change in unrealized depreciation on investments |
(974,183 | ) | (26,568 | ) | (45,757 | ) | (3,424 | ) | (1,356 | ) | (51,803 | ) | (20,454 | ) | (35 | ) | (205,673 | ) | ||||||||||||||||||
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|
|
|||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(733,290 | ) | (25,695 | ) | (39,460 | ) | (6,130 | ) | (2,165 | ) | (31,989 | ) | (3,404 | ) | (15 | ) | (116,910 | ) | ||||||||||||||||||
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|
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|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
$ | (715,987 | ) | $ | (25,086 | ) | $ | (37,100 | ) | $ | (4,641 | ) | $ | (2,329 | ) | $ | (32,295 | ) | $ | (2,158 | ) | $ | (13 | ) | $ | (117,734 | ) | |||||||||
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|
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|
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|
|
|
|
|
|
See accompanying notes to financial statements.
16
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Operations (continued)
For the year ended December 31, 2022
Janus Aspen Series | PIMCO Variable Insurance Trust |
|||||||||||||||||||||||||||||||||||
Janus Henderson Balanced Portfolio I-S |
Janus Henderson Enterprise Portfolio I-S |
Janus Henderson Flexible Bond Portfolio I-S |
Janus Henderson Forty Portfolio I-S |
Janus Henderson Global Research Portfolio I-S |
Janus Henderson Overseas Portfolio I-S |
Janus Henderson Research Portfolio I-S |
PIMCO PVIT International Bond (U.S. Dollar- Hedged) - Admin |
PIMCO PVIT Low Duration Portfolio - Admin |
||||||||||||||||||||||||||||
1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | ||||||||||||||||||||||||||||
REVENUE |
||||||||||||||||||||||||||||||||||||
Dividend income |
$ | 25,578 | $ | 3,060 | $ | 1,983 | $ | 4,680 | $ | 10,294 | $ | 10,299 | $ | 2,247 | $ | 1,080 | $ | 833 | ||||||||||||||||||
EXPENSES |
||||||||||||||||||||||||||||||||||||
Administration, mortality and expense risk charges |
7,830 | 5,091 | 317 | 21,962 | 3,525 | 2,116 | 5,131 | 649 | 446 | |||||||||||||||||||||||||||
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|
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|
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|
|
|
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|
|
|||||||||||||||||||
Net investment income (loss) |
17,748 | (2,031 | ) | 1,666 | (17,282 | ) | 6,769 | 8,183 | (2,884 | ) | 431 | 387 | ||||||||||||||||||||||||
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|
|||||||||||||||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS |
||||||||||||||||||||||||||||||||||||
Net realized gain (loss) on redemption of investments |
55,700 | 15,953 | (3,080 | ) | 32,286 | 39,896 | 2,804 | 46,613 | (473 | ) | (575 | ) | ||||||||||||||||||||||||
Capital gain distributions |
64,701 | 247,526 | 1,516 | 372,393 | 108,497 | | 246,461 | 29 | | |||||||||||||||||||||||||||
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|
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|
|
|
|
|||||||||||||||||||
Net realized gain (loss) on investments |
120,401 | 263,479 | (1,564 | ) | 404,679 | 148,393 | 2,804 | 293,074 | (444 | ) | (575 | ) | ||||||||||||||||||||||||
Change in unrealized depreciation on investments |
(536,903 | ) | (550,676 | ) | (14,027 | ) | (1,521,238 | ) | (385,744 | ) | (70,867 | ) | (823,097 | ) | (8,595 | ) | (3,290 | ) | ||||||||||||||||||
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|
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|
|
|
|
|
|
|
|||||||||||||||||||
Net realized and unrealized gain (loss) on investments |
(416,502 | ) | (287,197 | ) | (15,591 | ) | (1,116,559 | ) | (237,351 | ) | (68,063 | ) | (530,023 | ) | (9,039 | ) | (3,865 | ) | ||||||||||||||||||
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|
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|
|
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|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
$ | (398,754 | ) | $ | (289,228 | ) | $ | (13,925 | ) | $ | (1,133,841 | ) | $ | (230,582 | ) | $ | (59,880 | ) | $ | (532,907 | ) | $ | (8,608 | ) | $ | (3,478 | ) | |||||||||
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|
|
|
|
|
|
|
See accompanying notes to financial statements.
17
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity
For the year ended December 31, 2022
Alger Portfolios | American Century Variable Portfolios, Inc. | |||||||||||||||||||||||||||||||||||
Alger Balanced- Class I-2 |
Alger Capital Appreciation -Class I-2 |
Alger Growth & Income- Class I-2 |
Alger Large Cap Growth- Class I-2 |
Alger Mid Cap Growth- Class I-2 |
American Century VP Disciplined Core Value |
American Century VP International |
American Century VP Ultra |
American Century VP Value |
||||||||||||||||||||||||||||
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
||||||||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 3,392 | $ | (4,858 | ) | $ | 9,488 | $ | (3,110 | ) | $ | (5,038 | ) | $ | 1,197 | $ | 421 | $ | (461 | ) | $ | 6,141 | ||||||||||||||
Net realized gain (loss) on investments |
34,693 | 45,872 | 114,154 | 39,591 | 50,702 | 20,961 | 6,793 | 37,162 | 55,303 | |||||||||||||||||||||||||||
Change in unrealized depreciation of investments |
(109,716 | ) | (312,776 | ) | (280,624 | ) | (491,385 | ) | (771,167 | ) | (34,754 | ) | (19,330 | ) | (89,998 | ) | (60,913 | ) | ||||||||||||||||||
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|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
(71,631 | ) | (271,762 | ) | (156,982 | ) | (454,904 | ) | (725,503 | ) | (12,596 | ) | (12,116 | ) | (53,297 | ) | 531 | |||||||||||||||||||
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|
|||||||||||||||||||
POLICY OWNERS EQUITY TRANSACTIONS |
| |||||||||||||||||||||||||||||||||||
Proceeds from sales |
12,029 | | 24,837 | 22,454 | 42,872 | 5,034 | 567 | 1,961 | 12,465 | |||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
(21,797 | ) | (11 | ) | (22,584 | ) | 48,071 | 18,835 | (2,634 | ) | 3,364 | (1,018 | ) | (18,949 | ) | |||||||||||||||||||||
Payments for redemptions |
(3,788 | ) | | (2,805 | ) | (14,550 | ) | (23,265 | ) | (253 | ) | | (10,693 | ) | (1,459 | ) | ||||||||||||||||||||
Cost of insurance |
(15,685 | ) | (2,744 | ) | (31,687 | ) | (29,927 | ) | (59,182 | ) | (6,653 | ) | (1,011 | ) | (2,082 | ) | (15,251 | ) | ||||||||||||||||||
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|
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|
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|
|
|||||||||||||||||||
Net increase (decrease) from policy owners equity transactions |
(29,241 | ) | (2,755 | ) | (32,239 | ) | 26,048 | (20,740 | ) | (4,506 | ) | 2,920 | (11,832 | ) | (23,194 | ) | ||||||||||||||||||||
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|
|
|
|||||||||||||||||||
Total increase (decrease) in policy owners equity |
(100,872 | ) | (274,517 | ) | (189,221 | ) | (428,856 | ) | (746,243 | ) | (17,102 | ) | (9,196 | ) | (65,129 | ) | (22,663 | ) | ||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||
Beginning of period |
612,765 | 733,833 | 1,037,956 | 1,157,568 | 1,980,392 | 100,909 | 47,038 | 167,090 | 372,199 | |||||||||||||||||||||||||||
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|
|||||||||||||||||||
End of period |
$ | 511,893 | $ | 459,316 | $ | 848,735 | $ | 728,712 | $ | 1,234,149 | $ | 83,807 | $ | 37,842 | $ | 101,961 | $ | 349,536 | ||||||||||||||||||
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|
|
See accompanying notes to financial statements.
18
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2022
Advanced Series Trust | ||||||||||||||||||||||||||||||||||||
AST BlackRock Low Duration Bond |
AST BlackRock Loomis Sayles Bond Portfolio |
AST Core Fixed Income Portfolio |
AST International Growth |
AST Large- Cap Growth Portfolio |
AST Large- Cap Value Portfolio |
AST Loomis Sayles Large-Cap Growth Portfolio |
AST Mid- Cap Growth Portfolio |
AST Small Cap Growth |
||||||||||||||||||||||||||||
1/1/2022 to 2/11/2022 |
1/1/2022 to 2/11/2022 |
2/11/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
6/10/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 6/10/2022 |
1/1/2022 to 12/31/2022 |
1/1/2022 to 12/31/2022 |
||||||||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||||||||||
Net investment loss |
$ | (165 | ) | $ | (367 | ) | $ | (3,463 | ) | $ | (4,994 | ) | $ | (49,710 | ) | $ | (25,895 | ) | $ | (48,877 | ) | $ | (21,141 | ) | $ | (2,784 | ) | |||||||||
Net realized gain (loss) on investments |
7,011 | 49,492 | (9,566 | ) | 24,386 | (2,062 | ) | 149,393 | 5,948,815 | 88,440 | 24,657 | |||||||||||||||||||||||||
Change in unrealized depreciation of investments |
(9,441 | ) | (61,246 | ) | (52,123 | ) | (238,571 | ) | (449,004 | ) | (195,701 | ) | (9,878,037 | ) | (1,081,627 | ) | (137,850 | ) | ||||||||||||||||||
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|
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|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
(2,595 | ) | (12,121 | ) | (65,152 | ) | (219,179 | ) | (500,776 | ) | (72,203 | ) | (3,978,099 | ) | (1,014,328 | ) | (115,977 | ) | ||||||||||||||||||
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|
|
|||||||||||||||||||
POLICY OWNERS EQUITY TRANSACTIONS |
| |||||||||||||||||||||||||||||||||||
Proceeds from sales |
2,136 | 2,264 | 28,409 | 24,866 | 194,819 | 99,339 | 148,452 | 85,041 | 7,501 | |||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
(158,679 | ) | (349,297 | ) | 471,732 | 4,067 | 10,026,371 | 1,793,521 | (10,254,265 | ) | (40,051 | ) | (10,719 | ) | ||||||||||||||||||||||
Payments for redemptions |
| | (5,825 | ) | (12,871 | ) | (129,385 | ) | (29,906 | ) | (51,039 | ) | (35,892 | ) | (5,271 | ) | ||||||||||||||||||||
Cost of insurance |
(1,988 | ) | (3,969 | ) | (44,236 | ) | (37,662 | ) | (333,233 | ) | (162,503 | ) | (281,065 | ) | (160,523 | ) | (17,088 | ) | ||||||||||||||||||
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|
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|
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|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) from policy owners equity transactions |
(158,531 | ) | (351,002 | ) | 450,080 | (21,600 | ) | 9,758,572 | 1,700,451 | (10,437,917 | ) | (151,425 | ) | (25,577 | ) | |||||||||||||||||||||
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total increase (decrease) in policy owners equity |
(161,126 | ) | (363,123 | ) | 384,928 | (240,779 | ) | 9,257,796 | 1,628,248 | (14,416,016 | ) | (1,165,753 | ) | (141,554 | ) | |||||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||
Beginning of period |
161,126 | 363,123 | | 748,847 | | 1,404,850 | 14,416,016 | 3,260,052 | 415,157 | |||||||||||||||||||||||||||
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|
|||||||||||||||||||
End of period |
$ | | $ | | $ | 384,928 | $ | 508,068 | $ | 9,257,796 | $ | 3,033,098 | $ | | $ | 2,094,299 | $ | 273,603 | ||||||||||||||||||
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|
|
See accompanying notes to financial statements.
19
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2022
Advanced Series Trust | BNY Mellon Investment Portfolio |
BNY Mellon Stock Index Fund |
BNY Mellon Sustainable U.S. Equity Fund |
BNY Mellon Variable Investment Fund |
Deutsche DWS Variable Series I |
|||||||||||||||||||||||||||||||
AST T Rowe Price Asset Allocation |
AST T Rowe Price Large-Cap Value Portfolio |
BNY Mellon Investment Portfolios MidCap Stock Portfolio - Initial Shares |
BNY Mellon Stock Index Fund Inc. - Initial Shares |
BNY Mellon Sustainable U.S. Equity Portfolio Inc. - Initial Shares |
BNY Mellon VIF Appreciation Portfolio- Initial Shares |
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Shares |
DWS Capital Growth VIP A |
DWS Core Equity VIP A |
||||||||||||||||||||||||||||
1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2022 | 2/11/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | ||||||||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | (10,032 | ) | $ | (1,978 | ) | $ | (198 | ) | $ | 7,628 | $ | (93 | ) | $ | 701 | $ | (2,653 | ) | $ | (47,290 | ) | $ | 576 | ||||||||||||
Net realized gain (loss) on investments |
43,424 | 553,482 | 27,899 | 150,411 | 13,765 | 57,980 | 165,754 | 1,146,291 | 265,885 | |||||||||||||||||||||||||||
Change in unrealized depreciation of investments |
(256,052 | ) | (538,520 | ) | (47,175 | ) | (329,366 | ) | (63,160 | ) | (110,369 | ) | (322,928 | ) | (3,532,097 | ) | (572,157 | ) | ||||||||||||||||||
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|
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|
|
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|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
(222,660 | ) | 12,984 | (19,474 | ) | (171,327 | ) | (49,488 | ) | (51,688 | ) | (159,827 | ) | (2,433,096 | ) | (305,696 | ) | |||||||||||||||||||
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|||||||||||||||||||
POLICY OWNERS EQUITY TRANSACTIONS |
| |||||||||||||||||||||||||||||||||||
Proceeds from sales |
38,087 | 6,213 | | 14,799 | 3,554 | 7,557 | 19,501 | 60,625 | 50,165 | |||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
(10,030 | ) | (1,897,138 | ) | | (67,589 | ) | (436 | ) | (12,123 | ) | (20,573 | ) | (73,648 | ) | (33,941 | ) | |||||||||||||||||||
Payments for redemptions |
(31,028 | ) | (19,564 | ) | | (14,294 | ) | (502 | ) | (4,899 | ) | (1,971 | ) | (149,465 | ) | (29,861 | ) | |||||||||||||||||||
Cost of insurance |
(63,181 | ) | (11,078 | ) | (582 | ) | (19,883 | ) | (3,916 | ) | (8,516 | ) | (29,357 | ) | (137,772 | ) | (73,450 | ) | ||||||||||||||||||
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|
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|
|
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|
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|
|
|
|
|||||||||||||||||||
Net increase (decrease) from policy owners equity transactions |
(66,152 | ) | (1,921,567 | ) | (582 | ) | (86,967 | ) | (1,300 | ) | (17,981 | ) | (32,400 | ) | (300,260 | ) | (87,087 | ) | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total increase (decrease) in policy owners equity |
(288,812 | ) | (1,908,583 | ) | (20,056 | ) | (258,294 | ) | (50,788 | ) | (69,669 | ) | (192,227 | ) | (2,733,356 | ) | (392,783 | ) | ||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||
Beginning of period |
1,323,538 | 1,908,583 | 131,326 | 937,574 | 212,895 | 282,704 | 953,969 | 7,805,768 | 1,932,187 | |||||||||||||||||||||||||||
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|||||||||||||||||||
End of period |
$ | 1,034,726 | $ | | $ | 111,270 | $ | 679,280 | $ | 162,107 | $ | 213,035 | $ | 761,742 | $ | 5,072,412 | $ | 1,539,404 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
20
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2022
Deutsche DWS Variable Series I | Deutsche DWS Variable Series II | |||||||||||||||||||||||||||||||||||
DWS Core Equity VIP B |
DWS CROCI® International VIP A |
DWS CROCI® International VIP B |
DWS Global Small Cap VIP A |
DWS CROCI® U.S. VIP A |
DWS Global Income Builder VIP A |
DWS Government Money Market VIP A |
DWS High Income VIP A |
DWS International Growth VIP A |
||||||||||||||||||||||||||||
1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | ||||||||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | (887 | ) | $ | 5,979 | $ | 5,072 | $ | (931 | ) | $ | 17,328 | $ | 26,671 | $ | 8,600 | $ | 28,094 | $ | 6 | ||||||||||||||||
Net realized gain (loss) on investments |
33,746 | (4,480 | ) | (3,023 | ) | 46,542 | 38,322 | 101,683 | | (6,188 | ) | 80 | ||||||||||||||||||||||||
Change in unrealized depreciation of investments |
(73,249 | ) | (39,345 | ) | (43,410 | ) | (128,360 | ) | (409,177 | ) | (360,855 | ) | | (90,395 | ) | (1,607 | ) | |||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
(40,390 | ) | (37,846 | ) | (41,361 | ) | (82,749 | ) | (353,527 | ) | (232,501 | ) | 8,600 | (68,489 | ) | (1,521 | ) | |||||||||||||||||||
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|
|
|
|||||||||||||||||||
POLICY OWNERS EQUITY TRANSACTIONS |
| |||||||||||||||||||||||||||||||||||
Proceeds from sales |
5,340 | 8,890 | 11,978 | | 32,050 | 14,389 | 132,751 | 13,051 | | |||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
(6,400 | ) | 198 | (12,207 | ) | | (21,620 | ) | (5,723 | ) | (65,673 | ) | (6,318 | ) | | |||||||||||||||||||||
Payments for redemptions |
| (4,188 | ) | (8,367 | ) | | (15,808 | ) | (74,272 | ) | (101,666 | ) | (8,887 | ) | | |||||||||||||||||||||
Cost of insurance |
(12,598 | ) | (11,149 | ) | (10,763 | ) | (1,333 | ) | (42,523 | ) | (25,933 | ) | (198,781 | ) | (21,400 | ) | (48 | ) | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) from policy owners equity transactions |
(13,658 | ) | (6,249 | ) | (19,359 | ) | (1,333 | ) | (47,901 | ) | (91,539 | ) | (233,369 | ) | (23,554 | ) | (48 | ) | ||||||||||||||||||
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total increase (decrease) in policy owners equity |
(54,048 | ) | (44,095 | ) | (60,720 | ) | (84,082 | ) | (401,428 | ) | (324,040 | ) | (224,769 | ) | (92,043 | ) | (1,569 | ) | ||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||
Beginning of period |
247,934 | 277,836 | 296,007 | 334,987 | 2,212,359 | 1,488,404 | 2,871,094 | 710,707 | 5,226 | |||||||||||||||||||||||||||
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|
|||||||||||||||||||
End of period |
$ | 193,886 | $ | 233,741 | $ | 235,287 | $ | 250,905 | $ | 1,810,931 | $ | 1,164,364 | $ | 2,646,325 | $ | 618,664 | $ | 3,657 | ||||||||||||||||||
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|
|
|
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|
|
|
|
|
|
See accompanying notes to financial statements.
21
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2022
Deutsche DWS Variable Series II |
Deutsche DWS Investments VIT Funds |
Fidelity Variable Insurance Products Funds | ||||||||||||||||||||||||||||||||||
DWS Small Mid Cap Growth VIP A |
DWS Small Mid Cap Value VIP A |
DWS Equity 500 Index VIP A |
DWS Small Cap Index VIP A |
Fidelity VIP II Contrafund |
Fidelity VIP Equity Income |
Fidelity VIP Growth |
Fidelity VIP Growth Opportunities |
Fidelity VIP High Income |
||||||||||||||||||||||||||||
1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | ||||||||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | (32,322 | ) | $ | (34 | ) | $ | 2,249 | $ | 826 | $ | (13,744 | ) | $ | 14,980 | $ | 3,246 | $ | (14,818 | ) | $ | 6,845 | ||||||||||||||
Net realized gain (loss) on investments |
481,283 | 1,386 | 99,534 | 23,302 | 280,488 | 53,565 | 154,063 | 403,635 | (4,697 | ) | ||||||||||||||||||||||||||
Change in unrealized depreciation of investments |
(1,894,154 | ) | (16,457 | ) | (261,586 | ) | (59,078 | ) | (1,457,129 | ) | (141,518 | ) | (525,012 | ) | (1,280,129 | ) | (21,073 | ) | ||||||||||||||||||
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
(1,445,193 | ) | (15,105 | ) | (159,803 | ) | (34,950 | ) | (1,190,385 | ) | (72,973 | ) | (367,703 | ) | (891,312 | ) | (18,925 | ) | ||||||||||||||||||
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|
|
|||||||||||||||||||
POLICY OWNERS EQUITY TRANSACTIONS |
| |||||||||||||||||||||||||||||||||||
Proceeds from sales |
141,432 | | | 3,714 | 108,002 | 42,303 | 22,995 | 46,904 | 4,893 | |||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
(21,113 | ) | | (89,649 | ) | 3,619 | (51,257 | ) | (45,898 | ) | (156,041 | ) | (11,277 | ) | (937 | ) | ||||||||||||||||||||
Payments for redemptions |
(70,059 | ) | | | | (73,087 | ) | (28,277 | ) | (22,328 | ) | (34,193 | ) | (603 | ) | |||||||||||||||||||||
Cost of insurance |
(203,323 | ) | (436 | ) | (3,456 | ) | (4,074 | ) | (190,344 | ) | (75,199 | ) | (34,819 | ) | (100,769 | ) | (7,037 | ) | ||||||||||||||||||
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|
|
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|
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|
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) from policy owners equity transactions |
(153,063 | ) | (436 | ) | (93,105 | ) | 3,259 | (206,686 | ) | (107,071 | ) | (190,193 | ) | (99,335 | ) | (3,684 | ) | |||||||||||||||||||
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|
|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||||
Total increase (decrease) in policy owners equity |
(1,598,256 | ) | (15,541 | ) | (252,908 | ) | (31,691 | ) | (1,397,071 | ) | (180,044 | ) | (557,896 | ) | (990,647 | ) | (22,609 | ) | ||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||
Beginning of period |
5,107,053 | 91,391 | 902,675 | 167,609 | 4,458,371 | 1,332,549 | 1,540,453 | 2,340,202 | 161,835 | |||||||||||||||||||||||||||
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|
|||||||||||||||||||
End of period |
$ | 3,508,797 | $ | 75,850 | $ | 649,767 | $ | 135,918 | $ | 3,061,300 | $ | 1,152,505 | $ | 982,557 | $ | 1,349,555 | $ | 139,226 | ||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
22
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2022
Fidelity Variable Insurance Products Funds |
Franklin Templeton Variable Insurance Products Trust |
Invesco Variable Insurance Funds | ||||||||||||||||||||||||||||||||||
Fidelity VIP II Index 500 |
Fidelity VIP Overseas |
FTVIP Templeton Developing Markets Fund CL 2 |
FTVIP Templeton Foreign Fund CL 2 |
FTVIP Templeton Global Bond Fund CL 2 |
Invesco V.I. Discovery Mid Cap Growth Fund Series I |
Invesco V.I. Diversified Dividend Fund Series I |
Invesco V.I. Equity and Income Fund Series I |
Invesco V.I. Technology Fund Series I |
||||||||||||||||||||||||||||
1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | ||||||||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 17,303 | $ | 609 | $ | 2,360 | $ | 1,489 | $ | (164 | ) | $ | (306 | ) | $ | 1,246 | $ | 2 | $ | (824 | ) | |||||||||||||||
Net realized gain (loss) on investments |
240,893 | 873 | 6,297 | (2,706 | ) | (809 | ) | 19,814 | 17,050 | 20 | 88,763 | |||||||||||||||||||||||||
Change in unrealized depreciation of investments |
(974,183 | ) | (26,568 | ) | (45,757 | ) | (3,424 | ) | (1,356 | ) | (51,803 | ) | (20,454 | ) | (35 | ) | (205,673 | ) | ||||||||||||||||||
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|
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|
|
|
|
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|
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|
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
(715,987 | ) | (25,086 | ) | (37,100 | ) | (4,641 | ) | (2,329 | ) | (32,295 | ) | (2,158 | ) | (13 | ) | (117,734 | ) | ||||||||||||||||||
|
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|
|
|||||||||||||||||||
POLICY OWNERS EQUITY TRANSACTIONS |
| |||||||||||||||||||||||||||||||||||
Proceeds from sales |
103,123 | 4,262 | 5,246 | 899 | 2,648 | 326 | 2,281 | | 6,420 | |||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
(66,056 | ) | (677 | ) | (11,087 | ) | (382 | ) | (578 | ) | (104 | ) | (17,488 | ) | (1 | ) | 14,528 | |||||||||||||||||||
Payments for redemptions |
(87,973 | ) | | (1,519 | ) | | (492 | ) | (7,635 | ) | (197 | ) | | (375 | ) | |||||||||||||||||||||
Cost of insurance |
(202,968 | ) | (3,504 | ) | (5,712 | ) | (1,850 | ) | (1,212 | ) | (2,587 | ) | (3,958 | ) | (3 | ) | (6,623 | ) | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) from policy owners equity transactions |
(253,874 | ) | 81 | (13,072 | ) | (1,333 | ) | 366 | (10,000 | ) | (19,362 | ) | (4 | ) | 13,950 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total increase (decrease) in policy owners equity |
(969,861 | ) | (25,005 | ) | (50,172 | ) | (5,974 | ) | (1,963 | ) | (42,295 | ) | (21,520 | ) | (17 | ) | (103,784 | ) | ||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||
Beginning of period |
3,837,808 | 101,251 | 164,649 | 60,569 | 42,509 | 105,048 | 100,448 | 164 | 288,474 | |||||||||||||||||||||||||||
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|
|||||||||||||||||||
End of period |
$ | 2,867,947 | $ | 76,246 | $ | 114,477 | $ | 54,595 | $ | 40,546 | $ | 62,753 | $ | 78,928 | $ | 147 | $ | 184,690 | ||||||||||||||||||
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
23
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2022
Janus Aspen Series | PIMCO Variable Insurance Trust |
|||||||||||||||||||||||||||||||||||
Janus Henderson Balanced Portfolio I-S |
Janus Henderson Enterprise Portfolio I-S |
Janus Henderson Flexible Bond Portfolio I-S |
Janus Henderson Forty Portfolio I-S |
Janus Henderson Global Research Portfolio I-S |
Janus Henderson Overseas Portfolio I-S |
Janus Henderson Research Portfolio I-S |
PIMCO PVIT International Bond (U.S. Dollar- Hedged) - Admin |
PIMCO PVIT Low Duration Portfolio - Admin |
||||||||||||||||||||||||||||
1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | 1/1/2022 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | 12/31/2022 | ||||||||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 17,748 | $ | (2,031 | ) | $ | 1,666 | $ | (17,282 | ) | $ | 6,769 | $ | 8,183 | $ | (2,884 | ) | $ | 431 | $ | 387 | |||||||||||||||
Net realized gain (loss) on investments |
120,401 | 263,479 | (1,564 | ) | 404,679 | 148,393 | 2,804 | 293,074 | (444 | ) | (575 | ) | ||||||||||||||||||||||||
Change in unrealized depreciation of investments |
(536,903 | ) | (550,676 | ) | (14,027 | ) | (1,521,238 | ) | (385,744 | ) | (70,867 | ) | (823,097 | ) | (8,595 | ) | (3,290 | ) | ||||||||||||||||||
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
(398,754 | ) | (289,228 | ) | (13,925 | ) | (1,133,841 | ) | (230,582 | ) | (59,880 | ) | (532,907 | ) | (8,608 | ) | (3,478 | ) | ||||||||||||||||||
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|
|
|||||||||||||||||||
POLICY OWNERS EQUITY TRANSACTIONS |
| |||||||||||||||||||||||||||||||||||
Proceeds from sales |
27,626 | 28,726 | 6,105 | 98,764 | 26,948 | 17,548 | 31,473 | 3,770 | 2,594 | |||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
(54,321 | ) | (13,332 | ) | (13,889 | ) | 44,047 | (6,179 | ) | (23,985 | ) | 30,033 | (141 | ) | 1,349 | |||||||||||||||||||||
Payments for redemptions |
(13,949 | ) | (2,832 | ) | (377 | ) | (85,758 | ) | (5,372 | ) | (4,595 | ) | (936 | ) | | (2,149 | ) | |||||||||||||||||||
Cost of insurance |
(38,337 | ) | (53,188 | ) | (7,706 | ) | (149,953 | ) | (36,086 | ) | (17,989 | ) | (43,808 | ) | (5,912 | ) | (4,559 | ) | ||||||||||||||||||
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|
|||||||||||||||||||
Net increase (decrease) from policy owners equity transactions |
(78,981 | ) | (40,626 | ) | (15,867 | ) | (92,900 | ) | (20,689 | ) | (29,021 | ) | 16,762 | (2,283 | ) | (2,765 | ) | |||||||||||||||||||
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|
|||||||||||||||||||
Total increase (decrease) in policy owners equity |
(477,735 | ) | (329,854 | ) | (29,792 | ) | (1,226,741 | ) | (251,271 | ) | (88,901 | ) | (516,145 | ) | (10,891 | ) | (6,243 | ) | ||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||
Beginning of period |
2,393,991 | 1,782,962 | 104,807 | 3,374,577 | 1,172,340 | 672,168 | 1,764,901 | 78,779 | 53,712 | |||||||||||||||||||||||||||
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|||||||||||||||||||
End of period |
$ | 1,916,256 | $ | 1,453,108 | $ | 75,015 | $ | 2,147,836 | $ | 921,069 | $ | 583,267 | $ | 1,248,756 | $ | 67,888 | $ | 47,469 | ||||||||||||||||||
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|
|
See accompanying notes to financial statements.
24
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity
For the year ended December 31, 2021
Alger Portfolios | American Century Variable Portfolios, Inc. | |||||||||||||||||||||||||||||||||||
Alger Balanced- Class I-2 |
Alger Capital Appreciation -Class I-2 |
Alger Growth & Income- Class I-2 |
Alger Large Cap Growth- Class I-2 |
Alger Mid Cap Growth- Class I-2 |
American Century VP Disciplined Core Value |
American Century VP International |
American Century VP Ultra |
American Century VP Value |
||||||||||||||||||||||||||||
1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | ||||||||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | 1,791 | $ | (6,192 | ) | $ | 7,302 | $ | (4,408 | ) | $ | (7,582 | ) | $ | 653 | $ | (113 | ) | $ | (570 | ) | $ | 4,957 | |||||||||||||
Net realized gain (loss) on investments |
44,107 | 159,117 | 171,449 | 365,860 | 1,073,010 | 14,751 | 2,039 | 16,064 | 50,543 | |||||||||||||||||||||||||||
Change in unrealized appreciation (depreciation) of investments |
49,859 | (40,308 | ) | 75,985 | (235,612 | ) | (980,327 | ) | 3,896 | 1,708 | 13,519 | 20,731 | ||||||||||||||||||||||||
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|||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
95,757 | 112,617 | 254,736 | 125,840 | 85,101 | 19,300 | 3,634 | 29,013 | 76,231 | |||||||||||||||||||||||||||
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|||||||||||||||||||
POLICY OWNERS EQUITY TRANSACTIONS |
| |||||||||||||||||||||||||||||||||||
Proceeds from sales |
12,472 | | 23,669 | 23,778 | 44,433 | 4,897 | 567 | 1,980 | 13,669 | |||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
22,681 | (12 | ) | (6,811 | ) | (41,919 | ) | (29,607 | ) | (931 | ) | (654 | ) | 8,414 | (8,252 | ) | ||||||||||||||||||||
Payments for redemptions |
(2,224 | ) | | (37,098 | ) | (37,463 | ) | (97,972 | ) | | | (640 | ) | (21,807 | ) | |||||||||||||||||||||
Cost of insurance |
(13,959 | ) | (3,504 | ) | (28,386 | ) | (30,386 | ) | (64,356 | ) | (5,915 | ) | (971 | ) | (1,309 | ) | (14,119 | ) | ||||||||||||||||||
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|||||||||||||||||||
Net increase (decrease) from policy owners equity transactions |
18,970 | (3,516 | ) | (48,626 | ) | (85,990 | ) | (147,502 | ) | (1,949 | ) | (1,058 | ) | 8,445 | (30,509 | ) | ||||||||||||||||||||
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|||||||||||||||||||
Total increase (decrease) in policy owners equity |
114,727 | 109,101 | 206,110 | 39,850 | (62,401 | ) | 17,351 | 2,576 | 37,458 | 45,722 | ||||||||||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||
Beginning of period |
498,038 | 624,732 | 831,846 | 1,117,718 | 2,042,793 | 83,558 | 44,462 | 129,632 | 326,477 | |||||||||||||||||||||||||||
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|||||||||||||||||||
End of period |
$ | 612,765 | $ | 733,833 | $ | 1,037,956 | $ | 1,157,568 | $ | 1,980,392 | $ | 100,909 | $ | 47,038 | $ | 167,090 | $ | 372,199 | ||||||||||||||||||
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See accompanying notes to financial statements.
25
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2021
Advanced Series Trust | ||||||||||||||||||||||||||||
AST BlackRock Low Duration Bond |
AST BlackRock Loomis Sayles Bond Portfolio |
AST International Growth |
AST Large- Cap Value Portfolio |
AST Loomis Sayles Large- Cap Growth Portfolio |
AST Mid- Cap Growth Portfolio |
AST Small Cap Growth |
||||||||||||||||||||||
1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | ||||||||||||||||||||||
to | to | to | to | to | to | to | ||||||||||||||||||||||
12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | ||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||
Net investment (loss) |
$ | (1,538 | ) | $ | (3,355 | ) | $ | (6,808 | ) | $ | (12,118 | ) | $ | (124,646 | ) | $ | (28,509 | ) | $ | (3,854 | ) | |||||||
Net realized gain (loss) on investments |
2,539 | 10,554 | 88,452 | 50,724 | 642,525 | 173,288 | 46,377 | |||||||||||||||||||||
Change in unrealized appreciation (depreciation) of investments |
(3,517 | ) | (15,015 | ) | 420 | 277,664 | 1,670,569 | 135,986 | (28,483 | ) | ||||||||||||||||||
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|
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|
|
|
|||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
(2,516 | ) | (7,816 | ) | 82,064 | 316,270 | 2,188,448 | 280,765 | 14,040 | |||||||||||||||||||
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|
|||||||||||||||
POLICY OWNERS EQUITY TRANSACTIONS |
| |||||||||||||||||||||||||||
Proceeds from sales |
15,476 | 20,774 | 28,254 | 47,470 | 363,094 | 100,528 | 7,011 | |||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
(3,616 | ) | 7,884 | (5,136 | ) | (22,652 | ) | (32,423 | ) | 5,544 | 25,227 | |||||||||||||||||
Payments for redemptions |
(4,610 | ) | (19,117 | ) | (75,013 | ) | (22,843 | ) | (374,164 | ) | (124,764 | ) | (34,075 | ) | ||||||||||||||
Cost of insurance |
(6,411 | ) | (19,002 | ) | (17,496 | ) | (39,427 | ) | (396,032 | ) | (98,762 | ) | (12,703 | ) | ||||||||||||||
|
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|
|||||||||||||||
Net increase (decrease) from policy owners equity transactions |
839 | (9,461 | ) | (69,391 | ) | (37,452 | ) | (439,525 | ) | (117,454 | ) | (14,540 | ) | |||||||||||||||
|
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|
|||||||||||||||
Total increase (decrease) in policy owners equity |
(1,677 | ) | (17,277 | ) | 12,673 | 278,818 | 1,748,923 | 163,311 | (500 | ) | ||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||
Beginning of period |
162,803 | 380,400 | 736,174 | 1,126,032 | 12,667,093 | 3,096,741 | 415,657 | |||||||||||||||||||||
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|||||||||||||||
End of period |
$ | 161,126 | $ | 363,123 | $ | 748,847 | $ | 1,404,850 | $ | 14,416,016 | $ | 3,260,052 | $ | 415,157 | ||||||||||||||
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|
See accompanying notes to financial statements.
26
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2021
Advanced Series Trust | BNY Mellon Investment Portfolio |
BNY Mellon Stock Index Fund |
BNY Mellon Sustainable U.S. Equity Fund |
BNY Mellon Variable Investment Fund |
Deutsche DWS Variable Series I | |||||||||||||||||||||||||||||||||||
AST T Rowe Price Asset Allocation |
AST T Rowe Price Large- Cap Value Portfolio |
BNY Mellon Investment Portfolios MidCap Stock Portfolio - Initial Shares |
BNY Mellon Stock Index Fund Inc. - Initial Shares |
BNY Mellon Sustainable U.S. Equity Portfolio Inc. - Initial Shares |
BNY Mellon VIF Appreciation Portfolio- Initial Shares |
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Shares |
DWS Bond VIP A |
DWS Capital Growth VIP A |
DWS Core Equity VIP A |
|||||||||||||||||||||||||||||||
1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | |||||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | to | |||||||||||||||||||||||||||||||
12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 10/28/2021 | 12/31/2021 | 12/31/2021 | |||||||||||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | (11,379 | ) | $ | (16,230 | ) | $ | (351 | ) | $ | 6,394 | $ | 343 | $ | 153 | $ | (2,371 | ) | $ | 4,493 | $ | (48,508 | ) | $ | (253 | ) | ||||||||||||||
Net realized gain (loss) on investments |
26,700 | 29,982 | 991 | 92,254 | 6,922 | 27,336 | 145,663 | 15,005 | 589,175 | 145,247 | ||||||||||||||||||||||||||||||
Change in unrealized appreciation (depreciation) of investments |
120,383 | 372,299 | 25,514 | 106,651 | 37,545 | 33,198 | (6,232 | ) | (21,841 | ) | 866,891 | 241,183 | ||||||||||||||||||||||||||||
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|
|||||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
135,704 | 386,051 | 26,154 | 205,299 | 44,810 | 60,687 | 137,060 | (2,343 | ) | 1,407,558 | 386,177 | |||||||||||||||||||||||||||||
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|||||||||||||||||||||
POLICY OWNERS EQUITY TRANSACTIONS |
| |||||||||||||||||||||||||||||||||||||||
Proceeds from sales |
41,953 | 66,943 | | 13,964 | 3,650 | 7,854 | 22,062 | 6,406 | 63,431 | 52,561 | ||||||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
20,835 | (4,215 | ) | | 1,586 | (655 | ) | (3,702 | ) | (25,322 | ) | (285,236 | ) | (79,164 | ) | (82,026 | ) | |||||||||||||||||||||||
Payments for redemptions |
(13,946 | ) | (56,483 | ) | | (446 | ) | (1,023 | ) | | (19,067 | ) | (7,090 | ) | (69,259 | ) | (10,883 | ) | ||||||||||||||||||||||
Cost of insurance |
(36,489 | ) | (52,427 | ) | (623 | ) | (17,009 | ) | (3,732 | ) | (7,485 | ) | (27,362 | ) | (9,132 | ) | (100,050 | ) | (67,528 | ) | ||||||||||||||||||||
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|||||||||||||||||||||
Net increase (decrease) from policy owners equity transactions |
12,353 | (46,182 | ) | (623 | ) | (1,905 | ) | (1,760 | ) | (3,333 | ) | (49,689 | ) | (295,052 | ) | (185,042 | ) | (107,876 | ) | |||||||||||||||||||||
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|||||||||||||||||||||
Total increase (decrease) in policy owners equity |
148,057 | 339,869 | 25,531 | 203,394 | 43,050 | 57,354 | 87,371 | (297,395 | ) | 1,222,516 | 278,301 | |||||||||||||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||||||
Beginning of period |
1,175,481 | 1,568,714 | 105,795 | 734,180 | 169,845 | 225,350 | 866,598 | 297,395 | 6,583,252 | 1,653,886 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
End of period |
$ | 1,323,538 | $ | 1,908,583 | $ | 131,326 | $ | 937,574 | $ | 212,895 | $ | 282,704 | $ | 953,969 | $ | | $ | 7,805,768 | $ | 1,932,187 | ||||||||||||||||||||
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|
See accompanying notes to financial statements.
27
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2021
Deutsche DWS Variable Series I | Deutsche DWS Variable Series II | |||||||||||||||||||||||||||||||||||||||
DWS Core Equity VIP B |
DWS CROCI® International VIP A |
DWS CROCI® Internationa l VIP B |
DWS Global Small Cap VIP A |
DWS CROCI® U.S. VIP A |
DWS Global Equity VIP A |
DWS Global Income Builder VIP A |
DWS Government Money Market VIP A |
DWS High Income VIP A |
DWS International Growth VIP A |
|||||||||||||||||||||||||||||||
1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | |||||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | to | |||||||||||||||||||||||||||||||
12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 10/28/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | |||||||||||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | (1,023 | ) | $ | 4,737 | $ | 3,663 | $ | (1,820 | ) | $ | 20,570 | $ | (1,258 | ) | $ | 22,956 | $ | (15,434 | ) | $ | 25,662 | $ | (44 | ) | |||||||||||||||
Net realized gain (loss) on investments |
13,376 | (2,522 | ) | (3 | ) | (4,221 | ) | 8,818 | 404,702 | 68,486 | | (1,233 | ) | 2,064 | ||||||||||||||||||||||||||
Change in unrealized appreciation (depreciation) of investments |
35,828 | 19,706 | 18,190 | 51,782 | 423,834 | (297,918 | ) | 53,528 | | (3,350 | ) | (1,366 | ) | |||||||||||||||||||||||||||
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|
|||||||||||||||||||||
Net increase (decrease) in policy owners equity resulting from operations |
48,181 | 21,921 | 21,850 | 45,741 | 453,222 | 105,526 | 144,970 | (15,434 | ) | 21,079 | 654 | |||||||||||||||||||||||||||||
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|||||||||||||||||||||
POLICY OWNERS EQUITY TRANSACTIONS |
| |||||||||||||||||||||||||||||||||||||||
Proceeds from sales |
5,309 | 10,852 | 12,065 | | 34,089 | 15,463 | 17,380 | 119,956 | 13,452 | | ||||||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
769 | (4,140 | ) | 1,971 | (54,476 | ) | 1,442 | (803,064 | ) | (89,763 | ) | 1,086,503 | 15,686 | | ||||||||||||||||||||||||||
Payments for redemptions |
| (2,259 | ) | (4,016 | ) | (3,714 | ) | (16,214 | ) | (6,291 | ) | (35,748 | ) | (186,506 | ) | (4,621 | ) | (3,547 | ) | |||||||||||||||||||||
Cost of insurance |
(8,156 | ) | (10,483 | ) | (6,426 | ) | (1,631 | ) | (39,863 | ) | (11,738 | ) | (19,592 | ) | (110,332 | ) | (14,329 | ) | (69 | ) | ||||||||||||||||||||
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|
|||||||||||||||||||||
Net increase (decrease) from policy owners equity transactions |
(2,078 | ) | (6,030 | ) | 3,594 | (59,821 | ) | (20,546 | ) | (805,630 | ) | (127,723 | ) | 909,621 | 10,188 | (3,616 | ) | |||||||||||||||||||||||
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|
|||||||||||||||||||||
Total increase (decrease) in policy owners equity |
46,103 | 15,891 | 25,444 | (14,080 | ) | 432,676 | (700,104 | ) | 17,247 | 894,187 | 31,267 | (2,962 | ) | |||||||||||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||||||
Beginning of period |
201,831 | 261,945 | 270,563 | 349,067 | 1,779,683 | 700,104 | 1,471,157 | 1,976,907 | 679,440 | 8,188 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
End of period |
$ | 247,934 | $ | 277,836 | $ | 296,007 | $ | 334,987 | $ | 2,212,359 | $ | | $ | 1,488,404 | $ | 2,871,094 | $ | 710,707 | $ | 5,226 | ||||||||||||||||||||
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|
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|
|
See accompanying notes to financial statements.
28
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2021
Deutsche DWS Variable Series II |
Deutsche DWS Investments VIT Funds |
Fidelity Variable Insurance Products Funds | ||||||||||||||||||||||||||||||||||
DWS Small Mid Cap Growth VIP A |
DWS Small Mid Cap Value VIP A |
DWS Equity 500 Index VIP A |
DWS Small Cap Index VIP A |
Fidelity VIP II Contrafund |
Fidelity VIP Equity Income |
Fidelity VIP Growth |
Fidelity VIP Growth Opportunities |
Fidelity VIP High Income |
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1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | ||||||||||||||||||||||||||||
OPERATIONS |
| |||||||||||||||||||||||||||||||||||
Net investment income (loss) |
$ | (39,539 | ) | $ | 289 | $ | 4,577 | $ | 778 | $ | (34,019 | ) | $ | 16,015 | $ | (5,386 | ) | $ | (21,256 | ) | $ | 7,701 | ||||||||||||||
Net realized gain (loss) on investments |
436,711 | 653 | 48,859 | 20,544 | 757,189 | 182,239 | 462,037 | 429,655 | (5,421 | ) | ||||||||||||||||||||||||||
Change in unrealized appreciation (depreciation) of investments |
204,776 | 19,867 | 142,527 | 141 | 236,687 | 71,039 | (166,283 | ) | (168,256 | ) | 3,695 | |||||||||||||||||||||||||
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Net increase (decrease) in policy owners equity resulting from operations |
601,948 | 20,809 | 195,963 | 21,463 | 959,857 | 269,293 | 290,368 | 240,143 | 5,975 | |||||||||||||||||||||||||||
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POLICY OWNERS EQUITY TRANSACTIONS |
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Proceeds from sales |
153,404 | | | 3,631 | 117,317 | 43,629 | 24,933 | 46,457 | 4,838 | |||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
(186,995 | ) | | (161 | ) | (6,341 | ) | (56,237 | ) | (27,155 | ) | 15,771 | 73,933 | 12,853 | ||||||||||||||||||||||
Payments for redemptions |
(109,522 | ) | | (20,550 | ) | (367 | ) | (215,823 | ) | (45,894 | ) | (27,627 | ) | (179,706 | ) | (357 | ) | |||||||||||||||||||
Cost of insurance |
(135,988 | ) | (462 | ) | (3,965 | ) | (3,878 | ) | (111,208 | ) | (48,183 | ) | (31,526 | ) | (75,338 | ) | (5,043 | ) | ||||||||||||||||||
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Net increase (decrease) from policy owners equity transactions |
(279,101 | ) | (462 | ) | (24,676 | ) | (6,955 | ) | (265,951 | ) | (77,603 | ) | (18,449 | ) | (134,654 | ) | 12,291 | |||||||||||||||||||
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Total increase (decrease) in policy owners equity |
322,847 | 20,347 | 171,287 | 14,508 | 693,906 | 191,690 | 271,919 | 105,489 | 18,266 | |||||||||||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||
Beginning of period |
4,784,206 | 71,044 | 731,388 | 153,101 | 3,764,465 | 1,140,859 | 1,268,534 | 2,234,713 | 143,569 | |||||||||||||||||||||||||||
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End of period |
$ | 5,107,053 | $ | 91,391 | $ | 902,675 | $ | 167,609 | $ | 4,458,371 | $ | 1,332,549 | $ | 1,540,453 | $ | 2,340,202 | $ | 161,835 | ||||||||||||||||||
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See accompanying notes to financial statements.
29
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2021
Fidelity Variable Insurance Products Funds |
Franklin Templeton Variable Insurance Products Trust |
Invesco Variable Insurance Funds | ||||||||||||||||||||||||||||||||||||||
Fidelity VIP II Index 500 |
Fidelity VIP Overseas |
FTVIP Templeton Developing Markets Fund CL 2 |
FTVIP Templeton Foreign Fund CL 2 |
FTVIP Templeton Global Bond Fund CL 2 |
Invesco V.I. Discovery Mid Cap Growth Fund Series I |
Invesco V.I. Diversified Dividend Fund Series I |
Invesco V.I. Equity and Income Fund Series I |
Invesco V.I. Managed Volatility Fund |
Invesco V.I. Technology Fund Series I |
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1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 4/30/2021 | 1/1/2021 | 1/1/2021 | |||||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | to | |||||||||||||||||||||||||||||||
12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 4/30/2021 | 12/31/2021 | |||||||||||||||||||||||||||||||
OPERATIONS |
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Net investment income (loss) |
$ | 12,725 | $ | 149 | $ | 437 | $ | 892 | $ | (171 | ) | $ | (423 | ) | $ | 1,686 | $ | 3 | $ | 3 | $ | (1,158 | ) | |||||||||||||||||
Net realized gain (loss) on investments |
279,003 | 21,921 | 5,609 | 542 | (402 | ) | 16,884 | 4,910 | 2 | 8 | 52,370 | |||||||||||||||||||||||||||||
Change in unrealized appreciation (depreciation) of investments |
560,476 | (5,389 | ) | (16,882 | ) | 749 | (1,761 | ) | 1,150 | 9,772 | 4 | 1 | (13,171 | ) | ||||||||||||||||||||||||||
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Net increase (decrease) in policy owners equity resulting from operations |
852,204 | 16,681 | (10,836 | ) | 2,183 | (2,334 | ) | 17,611 | 16,368 | 9 | 12 | 38,041 | ||||||||||||||||||||||||||||
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POLICY OWNERS EQUITY TRANSACTIONS |
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Proceeds from sales |
109,154 | 4,546 | 4,791 | 899 | 2,366 | 321 | 2,281 | | | 6,450 | ||||||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
(10,636 | ) | (838 | ) | 7,802 | 2,657 | 1,625 | (206 | ) | 1,919 | 158 | (160 | ) | 1,012 | ||||||||||||||||||||||||||
Payments for redemptions |
(168,714 | ) | (2,437 | ) | | | | (13,235 | ) | (8,725 | ) | | | (35,062 | ) | |||||||||||||||||||||||||
Cost of insurance |
(122,162 | ) | (3,220 | ) | (5,618 | ) | (1,644 | ) | (1,017 | ) | (2,592 | ) | (3,300 | ) | (3 | ) | | (6,864 | ) | |||||||||||||||||||||
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Net increase (decrease) from policy owners equity transactions |
(192,358 | ) | (1,949 | ) | 6,975 | 1,912 | 2,974 | (15,712 | ) | (7,825 | ) | 155 | (160 | ) | (34,464 | ) | ||||||||||||||||||||||||
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Total increase (decrease) in policy owners equity |
659,846 | 14,732 | (3,861 | ) | 4,095 | 640 | 1,899 | 8,543 | 164 | (148 | ) | 3,577 | ||||||||||||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||||||
Beginning of period |
3,177,962 | 86,519 | 168,510 | 56,474 | 41,869 | 103,149 | 91,905 | | 148 | 284,897 | ||||||||||||||||||||||||||||||
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End of period |
$ | 3,837,808 | $ | 101,251 | $ | 164,649 | $ | 60,569 | $ | 42,509 | $ | 105,048 | $ | 100,448 | $ | 164 | $ | | $ | 288,474 | ||||||||||||||||||||
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See accompanying notes to financial statements.
30
ZALICO Variable Separate Account
of Zurich American Life Insurance Company
Statement of Changes in Policy Owners Equity (continued)
For the year ended December 31, 2021
Janus Aspen Series | PIMCO Variable Insurance Trust |
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Janus Henderson Balanced Portfolio I-S |
Janus Henderson Enterprise Portfolio I-S |
Janus Henderson Flexible Bond Portfolio I-S |
Janus Henderson Forty Portfolio I-S |
Janus Henderson Global Research Portfolio I-S |
Janus Henderson Overseas Portfolio I-S |
Janus Henderson Research Portfolio I-S |
PIMCO PVIT International Bond (U.S. Dollar-Hedged) - Admin |
PIMCO PVIT Low Duration Portfolio - Admin |
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1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | 1/1/2021 | ||||||||||||||||||||||||||||
to | to | to | to | to | to | to | to | to | ||||||||||||||||||||||||||||
12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | 12/31/2021 | ||||||||||||||||||||||||||||
OPERATIONS |
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Net investment income (loss) |
$ | 11,463 | $ | (642 | ) | $ | 1,691 | $ | (28,718 | ) | $ | 1,672 | $ | 5,178 | $ | (4,830 | ) | $ | 542 | $ | (195 | ) | ||||||||||||||
Net realized gain (loss) on investments |
68,297 | 361,202 | 2,840 | 476,543 | 168,108 | 14,170 | 221,543 | 993 | (43 | ) | ||||||||||||||||||||||||||
Change in unrealized appreciation (depreciation) of investments |
260,986 | (96,852 | ) | (5,739 | ) | 173,138 | 7,864 | 64,601 | 92,498 | (3,801 | ) | (733 | ) | |||||||||||||||||||||||
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Net increase (decrease) in policy owners equity resulting from operations |
340,746 | 263,708 | (1,208 | ) | 620,963 | 177,644 | 83,949 | 309,211 | (2,266 | ) | (971 | ) | ||||||||||||||||||||||||
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POLICY OWNERS EQUITY TRANSACTIONS |
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Proceeds from sales |
25,495 | 27,083 | 5,893 | 94,960 | 27,903 | 15,496 | 30,756 | 3,863 | 2,813 | |||||||||||||||||||||||||||
Net transfer (to) from affiliate and subaccounts |
51,278 | (20,023 | ) | 10,033 | (40,509 | ) | (18,205 | ) | (12,430 | ) | (15,089 | ) | 2,729 | 8,835 | ||||||||||||||||||||||
Payments for redemptions |
(2,314 | ) | (87,345 | ) | | (82,195 | ) | (20,654 | ) | (38,302 | ) | (104,293 | ) | | | |||||||||||||||||||||
Cost of insurance |
(33,236 | ) | (47,946 | ) | (6,711 | ) | (156,759 | ) | (33,384 | ) | (15,902 | ) | (44,075 | ) | (5,216 | ) | (3,883 | ) | ||||||||||||||||||
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Net increase (decrease) from policy owners equity transactions |
41,223 | (128,231 | ) | 9,215 | (184,503 | ) | (44,340 | ) | (51,138 | ) | (132,701 | ) | 1,376 | 7,765 | ||||||||||||||||||||||
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Total increase (decrease) in policy owners equity |
381,969 | 135,477 | 8,007 | 436,460 | 133,304 | 32,811 | 176,510 | (890 | ) | 6,794 | ||||||||||||||||||||||||||
POLICY OWNERS EQUITY |
| |||||||||||||||||||||||||||||||||||
Beginning of period |
2,012,022 | 1,647,485 | 96,800 | 2,938,117 | 1,039,036 | 639,357 | 1,588,391 | 79,669 | 46,918 | |||||||||||||||||||||||||||
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End of period |
$ | 2,393,991 | $ | 1,782,962 | $ | 104,807 | $ | 3,374,577 | $ | 1,172,340 | $ | 672,168 | $ | 1,764,901 | $ | 78,779 | $ | 53,712 | ||||||||||||||||||
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See accompanying notes to financial statements.
31
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
(1) Organization
ZALICO Variable Separate Account (the Separate Account) is a unit investment trust registered under the Investment Company Act of 1940, as amended, established by Zurich American Life Insurance Company (ZALICO or the Company). ZALICO is a stock life insurance company founded in 1947. The Company is incorporated under the insurance laws of the State of Illinois and is licensed in the District of Columbia and all states, with the exception of New York.
The Company is a wholly owned subsidiary of Zurich Holding Company of America, Inc. (ZHCA), a Delaware Corporation, which in turn is a wholly owned indirect subsidiary of its ultimate parent company Zurich Insurance Group Ltd. (ZIG), of Zurich, Switzerland.
Prior to June 20, 2022, ZALICO was a wholly owned subsidiary of Zurich American Company, LLC (ZAC). On June 20, 2022, ZAC merged into ZHCA, with ZHCA as the surviving entity. This merger had no impact on ZALICO or its operations.
Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from ZALICOs other assets and liabilities. The portion of the Separate Accounts assets applicable to the variable life policies is not chargeable with liabilities arising out of any other business ZALICO may conduct.
The Separate Account is used to fund policies (the Policy) for the Zurich Select variable life policies (Zurich Select), the Power V flexible premium variable universal life policies (Power V), the Farmers Variable Universal Life I flexible premium variable universal life policies (Farmers Variable Universal Life I), the Scudder Destinations Life modified single premium variable universal life policies (Scudder Destinations Life) and Zurich Life investor flexible premium universal life policies (Zurich Life investor). Each subaccount is an open-end diversified management investment company. The Separate Account follows the accounting and reporting guidance in Accounting Standards Codification (ASC) Topic 946 Financial Services - Investment Companies.
32
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
As of December 31, 2022, the Separate Account was comprised of fifty-nine total subaccounts, which are currently open. The following is a list of subaccounts in alphabetical order:
Alger Balanced-Class I-2 | DWS CROCI® U.S. VIP A | |
Alger Capital Appreciation-Class I-2 | DWS Global Income Builder VIP A | |
Alger Growth & Income-Class I-2 | DWS Government Money Market VIP A | |
Alger Large Cap Growth-Class I-2 | DWS High Income VIP A | |
Alger Mid Cap Growth-Class I-2 | DWS International Growth VIP A | |
American Century VP Disciplined Core Value | DWS Small Mid Cap Growth VIP A | |
American Century VP International | DWS Small Mid Cap Value VIP A | |
American Century VP Ultra | DWS Equity 500 Index VIP A | |
American Century VP Value | DWS Small Cap Index VIP A | |
AST BlackRock Low Duration Bond (a) | Fidelity VIP II Contrafund | |
AST BlackRock Loomis Sayles Bond Portfolio (a) | Fidelity VIP Equity Income | |
AST Core Fixed Income Portfolio (b) | Fidelity VIP Growth | |
AST International Growth | Fidelity VIP Growth Opportunities | |
AST Large-Cap Growth Portfolio (f) | Fidelity VIP High Income | |
AST Large-Cap Value Portfolio (e) | Fidelity VIP II Index 500 | |
AST Loomis Sayles Large-Cap Growth Portfolio (a) | Fidelity VIP Overseas | |
AST Mid-Cap Growth Portfolio | FTVIP Templeton Developing Markets Fund CL 2 | |
AST Small Cap Growth | FTVIP Templeton Foreign Fund CL 2 | |
AST T Rowe Price Asset Allocation | FTVIP Templeton Global Bond Fund CL 2 | |
AST T Rowe Price Large-Cap Value Portfolio (a) | Invesco V.I. Discovery Mid Cap Growth Fund Series I | |
BNY Mellon Investment Portfolios MidCap Stock Portfolio - Initial Shares | Invesco V.I. Diversified Dividend Fund Series I | |
BNY Mellon Stock Index Fund Inc. - Initial Shares | Invesco V.I. Equity and Income Fund Series I (d) | |
BNY Mellon Sustainable U.S. Equity Portfolio Inc. - Initial Shares | Invesco V.I. Managed Volatility Fund (c) | |
BNY Mellon VIF Appreciation Portfolio-Initial Shares | Invesco V.I. Technology Fund Series I | |
BNY Mellon VIF Opportunistic Small Cap Portfolio - Initial Shares | Janus Henderson Balanced Portfolio I-S | |
DWS Bond VIP A (c) | Janus Henderson Enterprise Portfolio I-S | |
DWS Capital Growth VIP A | Janus Henderson Flexible Bond Portfolio I-S | |
DWS Core Equity VIP A | Janus Henderson Forty Portfolio I-S | |
DWS Core Equity VIP B | Janus Henderson Global Research Portfolio I-S | |
DWS CROCI® International VIP A | Janus Henderson Overseas Portfolio I-S | |
DWS CROCI® International VIP B | Janus Henderson Research Portfolio I-S | |
DWS Global Equity VIP A (c) | PIMCO PVIT International Bond (U.S. Dollar-Hedged) - Admin | |
DWS Global Small Cap VIP A | PIMCO PVIT Low Duration Portfolio - Admin |
Notes:
(a) | Subaccount closed during 2022. |
(b) | Subaccount commenced operations February 11, 2022. |
(c) | Subaccount closed during 2021. |
(d) | Subaccount commenced operations April 30, 2021. |
33
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Notes:
(e) | Effective February 11, 2022, the AST T Rowe Price Large-Cap Value Portfolio closed, and the funds transferred to the following subaccount: AST Hotchkis Wiley Large-Cap Value Portfolio, which then changed its name to AST Large-Cap Value Portfolio. |
(f) | Subaccount commenced operations June 10, 2022. |
Policy owners may also allocate some or all of gross premiums or transfer some or all of the policy value to the Guaranteed Account, which is part of ZALICOs General Account. The assets of ZALICOs General Account support its insurance and annuity obligations and are subject to ZALICOs general liabilities from its business operations.
(2) Significant Accounting Policies
Investments
Investments are made in the various portfolios in accordance with selections made by the policy owners. The Separate Accounts assets are the property of ZALICO for the benefit of policy owners and are segregated from ZALICOs other assets. Such investments are made at the net asset value per share, reported by the respective portfolios, whose investments are stated at fair value.
Security transactions and investment income
Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Dividend income is recorded as income on the ex-dividend date and is reinvested in additional shares of the portfolio. Realized gains and losses from sales of investment shares are reported on a first in, first out (FIFO) cost basis. Capital gain distributions are included in realized gains (losses) on investments.
Accumulation unit valuation
On each day the New York Stock Exchange (the Exchange) is open for trading, the accumulation unit value is determined as of the earlier of 3:00 p.m. (CST) or the close of the Exchange by dividing the total value of each subaccounts investments and other assets, less liabilities, by the number of accumulation units outstanding in the respective subaccount.
Federal income taxes
The results of the operations of the Separate Account are included in the federal income tax return of ZALICO. Under the provisions of the policies, ZALICO has the right to charge the Separate Account for federal income tax attributable to the Separate Account. No charge has been made against the Separate Account for such tax during the year ended December 31, 2022 or 2021. Management will periodically review the policy in the event of changes in tax law. Accordingly, a charge may be made in future years for any federal income taxes that would be attributable to the policies.
Net transfers (to) from affiliate or subaccounts
Net transfers (to) from affiliate or subaccounts include transfers of all or part of the policy owners interest to or from another eligible subaccount or to the general account of ZALICO.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that could affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets or liabilities at the date of the financial statements. As a result, actual results reported as increases and decreases in net policy owners equity could differ from the estimates reported in the accompanying financial statements.
34
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Risks and uncertainties
The Separate Account provides for various subaccount investment options in any combination of the available open-end management investment companies, each of which bears exposure to the market, credit, and liquidity risks of the underlying portfolio in which it invests. Generally, all investments are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the value of investments, it is at least reasonably possible that changes in risks in the near term could materially affect investment balances, the amounts reported in the Statement of Assets, Liabilities and Policy Owners Equity and the amounts reported in the Statement of Changes in Policy Owners Equity. Accordingly, these financial statements should be read in conjunction with the financial statements of the underlying open-end management investment companies in Note 1.
Fair value measurements
The Separate Account determined the fair value of its financial instruments based on the fair value hierarchy established in the Financial Accounting Standards Boards (FASB) guidance referenced in the Fair Value Measurements and Disclosure Topic which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
The Separate Account has categorized its financial instruments based on the priority of the inputs to the valuation technique, into the three level hierarchy as outlined in the applicable guidance. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. As there are no level 2 or level 3 assets in any period presented, disclosures of transfers between levels of disclosure and a reconciliation of level 3 assets are not required. In addition, there are no other financial assets or assets valued on a non-recurring basis.
Financial assets and liabilities recorded at fair value on the Statement of Assets, Liabilities and Policy Owners Equity are categorized as follows:
| Level 1: Unadjusted quoted prices for identical assets or liabilities in an active market. |
| Level 2: Quoted prices in markets that are not active or significant inputs that are observable either directly or indirectly. Level 2 inputs include the following: |
a. | Quoted prices for similar assets or liabilities in active markets. |
b. | Quoted prices for identical or similar assets or liabilities in non-active markets. |
c. | Inputs other than quoted market prices that are observable. |
d. | Inputs that are derived principally from or corroborated by observable market data through correlation or other means. |
| Level 3: Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect managements own assumptions about the assumptions a market participant would use in pricing the asset or liability. |
Determination of fair values
The valuation methodologies used to determine the fair values of assets and liabilities under the FASB guidance referenced in the Fair Value Measurements and Disclosures Topic reflect market participant assumptions and are based on the application of the fair value hierarchy that prioritizes observable market inputs over unobservable inputs. The Separate Account determines the fair values of certain financial assets based on quoted market prices. All of the investments in the subaccounts of the Separate Account are classified as Level 1 in the fair value hierarchy for each of the financial statement periods presented herein and consist of open-ended management investment companies. Participants may, without restriction, transact at the daily net asset value (NAV) of the mutual funds. The NAV represents the daily per share value based on the fair value of the underlying portfolio of investments of the respective mutual funds.
35
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
(3) Purchases and Sales of Investments
The cost of purchases and proceeds from sales of investments, including distributions received and reinvested, for the year ended December 31, 2022 were as follows:
Purchases | Sales | |||||||
Alger Portfolios |
||||||||
Alger Balanced-Class I-2 |
$ | 51,110 | $ | 54,128 | ||||
Alger Capital Appreciation-Class I-2 |
41,270 | 7,611 | ||||||
Alger Growth & Income-Class I-2 |
136,285 | 102,452 | ||||||
Alger Large Cap Growth-Class I-2 |
155,520 | 92,111 | ||||||
Alger Mid Cap Growth-Class I-2 |
169,101 | 149,630 | ||||||
American Century Variable Portfolios, Inc. |
||||||||
American Century VP Disciplined Core Value |
29,008 | 11,097 | ||||||
American Century VP International |
44,085 | 35,109 | ||||||
American Century VP Ultra |
51,630 | 50,229 | ||||||
American Century VP Value |
93,265 | 81,872 | ||||||
Advanced Series Trust |
||||||||
AST BlackRock Low Duration Bond |
2,032 | 160,728 | ||||||
AST BlackRock Loomis Sayles Bond Portfolio |
1,161 | 352,531 | ||||||
AST Core Fixed Income Portfolio |
518,395 | 71,777 | ||||||
AST International Growth |
14,345 | 40,939 | ||||||
AST Large-Cap Growth Portfolio |
10,179,250 | 470,387 | ||||||
AST Large-Cap Value Portfolio |
1,895,120 | 220,563 | ||||||
AST Loomis Sayles Large-Cap Growth Portfolio |
12,606 | 10,499,398 | ||||||
AST Mid-Cap Growth Portfolio |
26,997 | 199,561 | ||||||
AST Small Cap Growth |
7,491 | 35,852 | ||||||
AST T Rowe Price Asset Allocation |
8,502 | 84,684 | ||||||
AST T Rowe Price Large-Cap Value Portfolio |
355 | 1,923,899 | ||||||
BNY Mellon Investment Portfolio |
||||||||
BNY Mellon Investment Portfolios MidCap Stock Portfolio - Initial Shares . |
28,921 | 1,612 | ||||||
BNY Mellon Stock Index Fund |
||||||||
BNY Mellon Stock Index Fund Inc. - Initial Shares |
150,283 | 161,273 | ||||||
BNY Mellon Sustainable U.S. Equity Fund |
||||||||
BNY Mellon Sustainable U.S. Equity Portfolio Inc. - Initial Shares |
17,180 | 6,047 |
36
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Purchases | Sales | |||||||
BNY Mellon Variable Investment Fund |
||||||||
BNY Mellon VIF Appreciation Portfolio-Initial Shares |
$ | 105,209 | $ | 53,779 | ||||
BNY Mellon VIF Opportunistic Small Cap Portfolio -Initial Shares |
204,844 | 70,355 | ||||||
Deutsche DWS Variable Series I |
||||||||
DWS Capital Growth VIP A |
1,002,633 | 381,868 | ||||||
DWS Core Equity VIP A |
316,568 | 171,711 | ||||||
DWS Core Equity VIP B |
32,669 | 16,849 | ||||||
DWS CROCI® International VIP A |
34,707 | 34,977 | ||||||
DWS CROCI® International VIP B |
15,078 | 29,364 | ||||||
DWS Global Small Cap VIP A |
49,816 | 3,770 | ||||||
Deutsche DWS Variable Series II |
||||||||
DWS CROCI® U.S. VIP A |
74,755 | 76,590 | ||||||
DWS Global Income Builder VIP A |
167,234 | 122,567 | ||||||
DWS Government Money Market VIP A |
104,782 | 329,551 | ||||||
DWS High Income VIP A |
38,999 | 34,460 | ||||||
DWS International Growth VIP A |
95 | 85 | ||||||
DWS Small Mid Cap Growth VIP A |
549,450 | 255,963 | ||||||
DWS Small Mid Cap Value VIP A |
1,859 | 1,153 | ||||||
Deutsche DWS Investments VIT Funds |
||||||||
DWS Equity 500 Index VIP A |
48,853 | 99,486 | ||||||
DWS Small Cap Index VIP A |
45,426 | 17,091 | ||||||
Fidelity Variable Insurance Products Funds |
||||||||
Fidelity VIP II Contrafund |
209,109 | 265,785 | ||||||
Fidelity VIP Equity Income |
112,710 | 165,820 | ||||||
Fidelity VIP Growth |
145,757 | 242,683 | ||||||
Fidelity VIP Growth Opportunities |
346,149 | 133,423 | ||||||
Fidelity VIP High Income |
45,524 | 42,363 | ||||||
Fidelity VIP II Index 500 |
82,600 | 293,985 | ||||||
Fidelity VIP Overseas |
5,088 | 3,678 | ||||||
Franklin Templeton Variable Insurance Products Trust |
||||||||
FTVIP Templeton Developing Markets Fund CL 2 |
24,276 | 25,960 | ||||||
FTVIP Templeton Foreign Fund CL 2 |
13,455 | 13,299 | ||||||
FTVIP Templeton Global Bond Fund CL 2 |
2,947 | 2,745 |
37
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Purchases | Sales | |||||||
Invesco Variable Insurance Funds |
||||||||
Invesco V.I. Discovery Mid Cap Growth Fund Series I |
$ | 21,588 | $ | 10,492 | ||||
Invesco V.I. Diversified Dividend Fund Series I |
24,641 | 32,429 | ||||||
Invesco V.I. Equity and Income Fund Series I |
23 | 5 | ||||||
Invesco V.I. Technology Fund Series I |
112,957 | 16,783 | ||||||
Janus Aspen Series |
||||||||
Janus Henderson Balanced Portfolio I-S |
177,691 | 174,222 | ||||||
Janus Henderson Enterprise Portfolio I-S |
296,913 | 92,045 | ||||||
Janus Henderson Flexible Bond Portfolio I-S |
19,063 | 31,748 | ||||||
Janus Henderson Forty Portfolio I-S |
438,903 | 176,694 | ||||||
Janus Henderson Global Research Portfolio I-S |
172,991 | 78,415 | ||||||
Janus Henderson Overseas Portfolio I-S |
38,084 | 58,922 | ||||||
Janus Henderson Research Portfolio I-S |
377,674 | 117,335 | ||||||
PIMCO Variable Insurance Trust |
||||||||
PIMCO PVIT International Bond (U.S. Dollar-Hedged) - Admin |
3,930 | 5,755 | ||||||
PIMCO PVIT Low Duration Portfolio - Admin |
4,001 | 6,380 |
38
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
(4) Expenses and Related Party Transactions
Policy Charges |
Range | |
Mortality and Expense Risk Charge | ||
ZALICO assesses a daily asset charge to cover mortality and expense risk associated with certain No-Lapse Guarantees and administrative and maintenance expense to cover costs that may exceed administrative charges set by the policies. The charge is assessed as a reduction in unit value. | 0.20%-0.90% annualized | |
Sales Load | ||
A sales load is deducted from each premium payment before the net premium is allocated to the subaccounts. | 2% | |
Contingent Deferred Sales Charge | ||
Proceeds payable on the surrender of a policy are reduced by the amount of any applicable contingent deferred sales charge due to ZALICO. The charge is assessed through the redemption of units and is based upon the number of full years which have elapsed between the date the policy was purchased and the surrender date. | 0.00%-100% | |
Transfer Charges | ||
Under the terms of the policies ZALICO has reserved the right to charge an amount for each transfer after the first 12 transfers in any policy year through a redemption in units. | $0-$25 per transfer | |
Administrative Charge | ||
An administrative charge is assessed on monthly cash value of the policy or a flat charge through a redemption of units. | $5-$10 or 0.25% to 0.35% of net assets annualized | |
Record Maintenance Charge | ||
A records maintenance charge is assessed annually as a redemption of units to compensate for issuance and administrative costs. | $30 | |
Cost of Insurance Charge | ||
The guarantee cost of insurance charges is based on attained age, sex and history of tobacco use of the insured. The net amount at risk (NAR) is the difference between the death benefit and the cash value of the policy. The charge is assessed as a reduction in unit value. | $.06 per $1,000 NAR- $83.33 per $1,000 NAR | |
Tax Charge | ||
A tax charge is assessed to cover a portion of the insurance companys state premium tax expense and certain federal income tax liability associated with the receipt of premium. The charge is either deducted from each premium payment or assessed against the average monthly cash value through a redemption of units. | 1%-3.5% of premium payment 0.00%-0.40% annualized |
39
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Policy Charges |
Range | |
Withdrawal Charge | ||
A charge is deducted against withdrawals of the initial premium paid under the policy. It is assessed to cover a portion of the insurance companys premium tax expenses and the sales expenses incurred in distributing the policies. The withdrawal charge declines to 0% after the ninth policy anniversary. | 0%-10% | |
Systematic Withdrawal Charge | ||
A charge is assessed against systematic withdrawals to cover ZALICOs costs associated with processing the withdrawals. | $50 initial set up $25 subsequent changes | |
Partial Withdrawal Charge | ||
A charge is assessed against partial withdrawals that are not processed under the systematic withdrawal plan in excess of one per policy year. | $25 |
Related Party Transactions
Policy loans are also provided for under the terms of the Policy. The minimum amount of the loan under Zurich Select, Power V, Farmers Variable Universal Life I and Zurich Life investor policy is $500 and is limited to 90% of the surrender value, less applicable surrender charges. The minimum amount of the loan under the Scudder Destinations Life policy is $1,000 and is limited to 90% of the surrender value, less applicable surrender charges. Interest is assessed against a policy loan under the terms of the Policy. Policy loans are carried in ZALICOs general account.
Investment Distributors, Inc., a wholly owned subsidiary of Protective Life Insurance Company (Protective Life), is the principal underwriter for the Separate Account. Effective September 3, 2003, ZALICO transferred certain of its business, as well as the capital stock of its wholly-owned subsidiaries, to a former affiliate, Federal Kemper Life Assurance Company (FKLA). In a contemporaneous transaction, FKLA and ZALICO entered into a coinsurance agreement under which FKLA administers the business and the records of, and 100% reinsures, certain lines of business issued by ZALICO, and performs certain Separate Account administration functions for certain registered variable annuity policies that are funded through the Separate Account. These transfers were part of a larger transaction under which the capital stock of FKLA was sold to Bank One Insurance Holdings, Inc. (Bank One). On July 1, 2004, Bank One merged into JP Morgan Chase & Co., and FKLA changed its name to Chase Insurance Life and Annuity Company (Chase Insurance). On July 3, 2006, Protective Life, purchased Chase Insurance. Effective April 1, 2007, Chase Insurance merged with and into Protective Life.
40
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
(5) Changes in Units Outstanding
The changes in units outstanding for the years ended December 31, 2022 and 2021 were as follows:
Units Issued | Units Redeemed |
Net Increase/ (Decrease) |
||||||||||
Alger Portfolios |
||||||||||||
Alger Balanced-Class I-2 |
||||||||||||
2022 |
1,093 | 2,172 | (1,079 | ) | ||||||||
2021 |
3,864 | 3,192 | 672 | |||||||||
Alger Capital Appreciation-Class I-2 |
||||||||||||
2022 |
| 58 | (58 | ) | ||||||||
2021 |
| 58 | (58 | ) | ||||||||
Alger Growth & Income-Class I-2 |
||||||||||||
2022 |
1,769 | 2,496 | (727 | ) | ||||||||
2021 |
2,610 | 3,691 | (1,081 | ) | ||||||||
Alger Large Cap Growth-Class I-2 |
||||||||||||
2022 |
2,750 | 2,269 | 481 | |||||||||
2021 |
2,308 | 3,658 | (1,350 | ) | ||||||||
Alger Mid Cap Growth-Class I-2 |
||||||||||||
2022 |
3,955 | 4,722 | (767 | ) | ||||||||
2021 |
5,857 | 8,418 | (2,561 | ) | ||||||||
American Century Variable Portfolios, Inc. |
||||||||||||
American Century VP Disciplined Core Value |
||||||||||||
2022 |
219 | 326 | (107 | ) | ||||||||
2021 |
149 | 197 | (48 | ) | ||||||||
American Century VP International |
||||||||||||
2022 |
1,576 | 1,498 | 78 | |||||||||
2021 |
18 | 57 | (39 | ) | ||||||||
American Century VP Ultra |
||||||||||||
2022 |
529 | 732 | (203 | ) | ||||||||
2021 |
212 | 116 | 96 | |||||||||
American Century VP Value |
||||||||||||
2022 |
1,787 | 2,468 | (681 | ) | ||||||||
2021 |
1,861 | 2,807 | (946 | ) | ||||||||
Advanced Series Trust |
||||||||||||
AST BlackRock Low Duration Bond |
||||||||||||
2022 |
133 | 8,102 | (7,969 | ) | ||||||||
2021 |
1,276 | 1,239 | 37 |
41
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Units Issued | Units Redeemed |
Net Increase/ (Decrease) |
||||||||||
AST BlackRock Loomis Sayles Bond Portfolio |
||||||||||||
2022 |
107 | 11,855 | (11,748 | ) | ||||||||
2021 |
1,055 | 1,366 | (311 | ) | ||||||||
AST Core Fixed Income Portfolio |
||||||||||||
2022 |
75,502 | 31,339 | 44,163 | |||||||||
2021 |
| | | |||||||||
AST International Growth |
||||||||||||
2022 |
1,660 | 2,568 | (908 | ) | ||||||||
2021 |
1,442 | 3,620 | (2,178 | ) | ||||||||
AST Large-Cap Growth Portfolio |
||||||||||||
2022 |
1,048,620 | 73,045 | 975,575 | |||||||||
2021 |
| | | |||||||||
AST Large-Cap Value Portfolio |
||||||||||||
2022 |
30,930 | 5,198 | 25,732 | |||||||||
2021 |
755 | 1,351 | (596 | ) | ||||||||
AST Loomis Sayles Large-Cap Growth Portfolio |
||||||||||||
2022 |
1,631 | 103,889 | (102,258 | ) | ||||||||
2021 |
3,111 | 6,250 | (3,139 | ) | ||||||||
AST Mid-Cap Growth Portfolio |
||||||||||||
2022 |
1,730 | 3,643 | (1,913 | ) | ||||||||
2021 |
1,834 | 3,082 | (1,248 | ) | ||||||||
AST Small Cap Growth |
||||||||||||
2022 |
227 | 603 | (376 | ) | ||||||||
2021 |
461 | 633 | (172 | ) | ||||||||
AST T Rowe Price Asset Allocation |
||||||||||||
2022 |
775 | 1,962 | (1,187 | ) | ||||||||
2021 |
914 | 695 | 219 | |||||||||
AST T Rowe Price Large-Cap Value Portfolio |
||||||||||||
2022 |
485 | 140,090 | (139,605 | ) | ||||||||
2021 |
6,441 | 9,603 | (3,162 | ) | ||||||||
BNY Mellon Investment Portfolio |
||||||||||||
BNY Mellon Investment Portfolios MidCap Stock Portfolio - Initial Shares |
||||||||||||
2022 |
| 13 | (13 | ) | ||||||||
2021 |
| 13 | (13 | ) |
42
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Units Issued | Units Redeemed |
Net Increase/ (Decrease) |
||||||||||
BNY Mellon Stock Index Fund |
||||||||||||
BNY Mellon Stock Index Fund Inc. - Initial Shares |
||||||||||||
2022 |
1,721 | 3,646 | (1,925 | ) | ||||||||
2021 |
1,653 | 1,717 | (64 | ) | ||||||||
BNY Mellon Sustainable U.S. Equity Fund |
||||||||||||
BNY Mellon Sustainable U.S. Equity Portfolio Inc. - Initial Shares |
||||||||||||
2022 |
111 | 144 | (33 | ) | ||||||||
2021 |
96 | 130 | (34 | ) | ||||||||
BNY Mellon Variable Investment Fund |
||||||||||||
BNY Mellon VIF Appreciation Portfolio-Initial Shares |
||||||||||||
2022 |
918 | 1,365 | (447 | ) | ||||||||
2021 |
381 | 440 | (59 | ) | ||||||||
BNY Mellon VIF Opportunistic Small Cap Portfolio -Initial Shares |
||||||||||||
2022 |
1,461 | 2,400 | (939 | ) | ||||||||
2021 |
6,254 | 7,679 | (1,425 | ) | ||||||||
Deutsche DWS Variable Series I |
||||||||||||
DWS Bond VIP A |
||||||||||||
2022 |
| | | |||||||||
2021 |
2,588 | 21,198 | (18,610 | ) | ||||||||
DWS Capital Growth VIP A |
||||||||||||
2022 |
2,235 | 8,623 | (6,388 | ) | ||||||||
2021 |
1,802 | 5,373 | (3,571 | ) | ||||||||
DWS Core Equity VIP A |
||||||||||||
2022 |
2,625 | 4,685 | (2,060 | ) | ||||||||
2021 |
1,793 | 4,582 | (2,789 | ) | ||||||||
DWS Core Equity VIP B |
||||||||||||
2022 |
149 | 508 | (359 | ) | ||||||||
2021 |
140 | 185 | (45 | ) | ||||||||
DWS CROCI® International VIP A |
||||||||||||
2022 |
2,163 | 2,520 | (357 | ) | ||||||||
2021 |
1,381 | 1,825 | (444 | ) | ||||||||
DWS CROCI® International VIP B |
||||||||||||
2022 |
920 | 2,039 | (1,119 | ) | ||||||||
2021 |
1,182 | 980 | 202 |
43
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Units Issued | Units Redeemed |
Net Increase/ (Decrease) |
||||||||||
DWS Global Small Cap VIP A |
||||||||||||
2022 |
| 40 | (40 | ) | ||||||||
2021 |
| 1,557 | (1,557 | ) | ||||||||
Deutsche DWS Variable Series II |
||||||||||||
DWS CROCI® U.S. VIP A |
||||||||||||
2022 |
14,725 | 29,565 | (14,840 | ) | ||||||||
2021 |
9,696 | 9,286 | 410 | |||||||||
DWS Global Equity VIP A |
||||||||||||
2022 |
| | | |||||||||
2021 |
4,245 | 115,811 | (111,566 | ) | ||||||||
DWS Global Income Builder VIP A |
||||||||||||
2022 |
2,408 | 16,130 | (13,722 | ) | ||||||||
2021 |
2,756 | 19,861 | (17,105 | ) | ||||||||
DWS Government Money Market VIP A |
||||||||||||
2022 |
105,056 | 243,805 | (138,749 | ) | ||||||||
2021 |
626,768 | 217,520 | 409,248 | |||||||||
DWS High Income VIP A |
||||||||||||
2022 |
3,851 | 9,772 | (5,921 | ) | ||||||||
2021 |
7,004 | 4,038 | 2,966 | |||||||||
DWS International Growth VIP A |
||||||||||||
2022 |
| 2 | (2 | ) | ||||||||
2021 |
| 104 | (104 | ) | ||||||||
DWS Small Mid Cap Growth VIP A |
||||||||||||
2022 |
34,826 | 63,461 | (28,635 | ) | ||||||||
2021 |
25,981 | 57,638 | (31,657 | ) | ||||||||
DWS Small Mid Cap Value VIP A |
||||||||||||
2022 |
| 7 | (7 | ) | ||||||||
2021 |
| 7 | (7 | ) | ||||||||
Deutsche DWS Investments VIT Funds |
||||||||||||
DWS Equity 500 Index VIP A |
||||||||||||
2022 |
3 | 2,228 | (2,225 | ) | ||||||||
2021 |
| 625 | (625 | ) | ||||||||
DWS Small Cap Index VIP A |
||||||||||||
2022 |
604 | 513 | 91 | |||||||||
2021 |
1,358 | 1,561 | (203 | ) |
44
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Units Issued | Units Redeemed |
Net Increase/ (Decrease) |
||||||||||
Fidelity Variable Insurance Products Funds |
||||||||||||
Fidelity VIP II Contrafund |
||||||||||||
2022 |
1,022 | 2,563 | (1,541 | ) | ||||||||
2021 |
825 | 2,623 | (1,798 | ) | ||||||||
Fidelity VIP Equity Income |
||||||||||||
2022 |
1,777 | 3,369 | (1,592 | ) | ||||||||
2021 |
3,891 | 5,532 | (1,641 | ) | ||||||||
Fidelity VIP Growth |
||||||||||||
2022 |
1,045 | 4,196 | (3,151 | ) | ||||||||
2021 |
3,606 | 3,899 | (293 | ) | ||||||||
Fidelity VIP Growth Opportunities |
||||||||||||
2022 |
762 | 1,765 | (1,003 | ) | ||||||||
2021 |
873 | 1,879 | (1,006 | ) | ||||||||
Fidelity VIP High Income |
||||||||||||
2022 |
1,822 | 2,032 | (210 | ) | ||||||||
2021 |
2,747 | 2,263 | 484 | |||||||||
Fidelity VIP II Index 500 |
||||||||||||
2022 |
215 | 665 | (450 | ) | ||||||||
2021 |
191 | 509 | (318 | ) | ||||||||
Fidelity VIP Overseas |
||||||||||||
2022 |
247 | 243 | 4 | |||||||||
2021 |
1,485 | 1,588 | (103 | ) | ||||||||
Franklin Templeton Variable Insurance Products Trust |
||||||||||||
FTVIP Templeton Developing Markets Fund CL 2 |
||||||||||||
2022 |
839 | 1,648 | (809 | ) | ||||||||
2021 |
1,057 | 742 | 315 | |||||||||
FTVIP Templeton Foreign Fund CL 2 |
||||||||||||
2022 |
779 | 873 | (94 | ) | ||||||||
2021 |
749 | 643 | 106 | |||||||||
FTVIP Templeton Global Bond Fund CL 2 |
||||||||||||
2022 |
292 | 270 | 22 | |||||||||
2021 |
304 | 108 | 196 |
45
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Units Issued | Units Redeemed |
Net Increase/ (Decrease) |
||||||||||
Invesco Variable Insurance Funds |
||||||||||||
Invesco V.I. Discovery Mid Cap Growth Fund Series I |
||||||||||||
2022 |
29 | 814 | (785 | ) | ||||||||
2021 |
18 | 1,005 | (987 | ) | ||||||||
Invesco V.I. Diversified Dividend Fund Series I |
||||||||||||
2022 |
513 | 1,251 | (738 | ) | ||||||||
2021 |
169 | 476 | (307 | ) | ||||||||
Invesco V.I. Equity and Income Fund Series I |
||||||||||||
2022 |
| 1 | (1 | ) | ||||||||
2021 |
16 | | 16 | |||||||||
Invesco V.I. Managed Volatility Fund |
||||||||||||
2022 |
| | | |||||||||
2021 |
| 6 | (6 | ) | ||||||||
Invesco V.I. Technology Fund Series I |
||||||||||||
2022 |
611 | 340 | 271 | |||||||||
2021 |
169 | 665 | (496 | ) | ||||||||
Janus Aspen Series |
||||||||||||
Janus Henderson Balanced Portfolio I-S |
||||||||||||
2022 |
3,051 | 5,445 | (2,394 | ) | ||||||||
2021 |
4,144 | 3,074 | 1,070 | |||||||||
Janus Henderson Enterprise Portfolio I-S |
||||||||||||
2022 |
1,124 | 1,840 | (716 | ) | ||||||||
2021 |
5,789 | 7,899 | (2,110 | ) | ||||||||
Janus Henderson Flexible Bond Portfolio I-S |
||||||||||||
2022 |
1,081 | 2,047 | (966 | ) | ||||||||
2021 |
1,252 | 761 | 491 | |||||||||
Janus Henderson Forty Portfolio I-S |
||||||||||||
2022 |
1,163 | 1,783 | (620 | ) | ||||||||
2021 |
389 | 1,507 | (1,118 | ) | ||||||||
Janus Henderson Global Research Portfolio I-S |
||||||||||||
2022 |
2,156 | 2,822 | (666 | ) | ||||||||
2021 |
3,428 | 4,772 | (1,344 | ) | ||||||||
Janus Henderson Overseas Portfolio I-S |
||||||||||||
2022 |
1,867 | 3,282 | (1,415 | ) | ||||||||
2021 |
3,601 | 5,966 | (2,365 | ) |
46
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Units Issued | Units Redeemed |
Net Increase/ (Decrease) |
||||||||||
Janus Henderson Research Portfolio I-S |
||||||||||||
2022 |
3,251 | 2,926 | 325 | |||||||||
2021 |
2,125 | 4,434 | (2,309 | ) | ||||||||
PIMCO Variable Insurance Trust |
||||||||||||
PIMCO PVIT International Bond (U.S. Dollar- Hedged) - Admin |
||||||||||||
2022 |
208 | 311 | (103 | ) | ||||||||
2021 |
197 | 142 | 55 | |||||||||
PIMCO PVIT Low Duration Portfolio - Admin |
||||||||||||
2022 |
292 | 462 | (170 | ) | ||||||||
2021 |
597 | 148 | 449 |
47
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
(6) Unit Values and Financial Highlights
ZALICO sells a number of variable life products, as discussed in Note 1, which are funded by the Separate Account. These products have unique combinations of features and fees that are charged against the policy owners account. Differences in fee structures result in a variety of unit values, expense ratios and total returns. The following tables were developed by determining which products offered by ZALICO and funded by the Separate Account have the highest and lowest expense ratios. Only product designs within each subaccount that had units outstanding throughout the respective periods were considered when determining the highest and lowest expense ratio. The summaries may not reflect the minimum and maximum policy charges offered by ZALICO as policy owners may not have selected all available and applicable policy options.
A summary of the units outstanding, unit fair value and net assets for variable life insurance policies, investment income and expense ratios, excluding expenses of the underlying funds, and total return for each of the five years in the period ended December 31, 2022, (except for funds which are no longer active and which have not been shown in the accompanying financial statements) were as follows:
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
Alger Portfolios |
||||||||||||||||||||||||||||||||||||
Alger Balanced-Class I-2 |
||||||||||||||||||||||||||||||||||||
2022 |
19 | $ | 26.642 | $ | 40.231 | $ | 512 | 1.10 | % | 0.20 | % | 0.90 | % | (12.10 | )% | (11.49 | )% | |||||||||||||||||||
2021 |
20 | 30.310 | 45.632 | 613 | 0.86 | % | 0.20 | % | 0.90 | % | 18.06 | % | 18.88 | % | ||||||||||||||||||||||
2020 |
19 | 25.674 | 38.538 | 498 | 1.23 | % | 0.20 | % | 0.90 | % | 9.25 | % | 10.01 | % | ||||||||||||||||||||||
2019 |
19 | 23.471 | 35.171 | 449 | 1.46 | % | 0.20 | % | 0.90 | % | 18.44 | % | 19.26 | % | ||||||||||||||||||||||
2018 |
21 | 19.719 | 29.608 | 423 | 3.99 | % | 0.20 | % | 0.90 | % | (4.19 | )% | (3.52 | )% | ||||||||||||||||||||||
Alger Capital Appreciation-Class I-2 |
|
|||||||||||||||||||||||||||||||||||
2022 |
11 | 40.875 | 40.875 | 459 | N/A | 0.90 | % | 0.90 | % | (37.09 | )% | (37.09 | )% | |||||||||||||||||||||||
2021 |
11 | 64.973 | 64.973 | 734 | N/A | 0.90 | % | 0.90 | % | 18.06 | % | 18.06 | % | |||||||||||||||||||||||
2020 |
11 | 55.032 | 55.032 | 625 | N/A | 0.90 | % | 0.90 | % | 40.49 | % | 40.49 | % | |||||||||||||||||||||||
2019 |
13 | 39.171 | 39.171 | 526 | N/A | 0.90 | % | 0.90 | % | 32.39 | % | 32.39 | % | |||||||||||||||||||||||
2018 |
17 | 29.588 | 29.588 | 488 | 0.09 | % | 0.90 | % | 0.90 | % | (1.00 | )% | (1.00 | )% | ||||||||||||||||||||||
Alger Growth & Income-Class I-2 |
|
|||||||||||||||||||||||||||||||||||
2022 |
19 | 43.627 | 52.500 | 849 | 1.35 | % | 0.20 | % | 0.60 | % | (15.49 | )% | (15.15 | )% | ||||||||||||||||||||||
2021 |
20 | 51.519 | 62.119 | 1,038 | 1.16 | % | 0.20 | % | 0.60 | % | 30.88 | % | 31.40 | % | ||||||||||||||||||||||
2020 |
21 | 39.286 | 47.464 | 832 | 1.29 | % | 0.20 | % | 0.60 | % | 14.19 | % | 14.65 | % | ||||||||||||||||||||||
2019 |
22 | 34.334 | 41.564 | 752 | 1.60 | % | 0.20 | % | 0.60 | % | 28.70 | % | 29.21 | % | ||||||||||||||||||||||
2018 |
24 | 26.625 | 32.295 | 652 | 1.72 | % | 0.20 | % | 0.60 | % | (5.18 | )% | (4.80 | )% | ||||||||||||||||||||||
Alger Large Cap Growth-Class I-2 |
|
|||||||||||||||||||||||||||||||||||
2022 |
18 | 41.310 | 162.934 | 729 | N/A | 0.20 | % | 0.60 | % | (39.02 | )% | (38.78 | )% | |||||||||||||||||||||||
2021 |
17 | 67.609 | 267.192 | 1,158 | N/A | 0.20 | % | 0.60 | % | 11.17 | % | 11.62 | % | |||||||||||||||||||||||
2020 |
18 | 60.692 | 240.335 | 1,118 | 0.17 | % | 0.20 | % | 0.60 | % | 66.03 | % | 66.70 | % | ||||||||||||||||||||||
2019 |
22 | 36.482 | 144.751 | 804 | N/A | 0.20 | % | 0.60 | % | 26.67 | % | 27.18 | % | |||||||||||||||||||||||
2018 |
25 | 28.743 | 114.273 | 713 | N/A | 0.20 | % | 0.60 | % | 1.59 | % | 2.00 | % |
48
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
Alger Mid Cap Growth-Class I-2 |
||||||||||||||||||||||||||||||||||||
2022 |
33 | $ | 36.680 | $ | 108.100 | $ | 1,234 | N/A | 0.20 | % | 0.60 | % | (36.45 | )% | (36.20 | )% | ||||||||||||||||||||
2021 |
34 | 57.607 | 170.112 | 1,980 | N/A | 0.20 | % | 0.60 | % | 3.58 | % | 4.00 | % | |||||||||||||||||||||||
2020 |
36 | 55.504 | 164.228 | 2,043 | N/A | 0.20 | % | 0.60 | % | 63.65 | % | 64.30 | % | |||||||||||||||||||||||
2019 |
39 | 33.850 | 100.350 | 1,330 | N/A | 0.20 | % | 0.60 | % | 29.48 | % | 30.00 | % | |||||||||||||||||||||||
2018 |
42 | 26.091 | 77.506 | 1,106 | N/A | 0.20 | % | 0.60 | % | (8.00 | )% | (7.63 | )% | |||||||||||||||||||||||
American Century Variable Portfolios, Inc. |
|
|||||||||||||||||||||||||||||||||||
American Century VP Disciplined Core Value |
|
|||||||||||||||||||||||||||||||||||
2022 |
2 | 23.456 | 37.513 | 84 | 1.68 | % | 0.20 | % | 0.60 | % | (13.25 | )% | (12.91 | )% | ||||||||||||||||||||||
2021 |
2 | 27.040 | 43.074 | 101 | 1.12 | % | 0.20 | % | 0.60 | % | 22.91 | % | 23.40 | % | ||||||||||||||||||||||
2020 |
2 | 22.000 | 34.905 | 84 | 1.81 | % | 0.20 | % | 0.60 | % | 11.14 | % | 11.59 | % | ||||||||||||||||||||||
2019 |
2 | 19.794 | 31.281 | 75 | 2.09 | % | 0.20 | % | 0.60 | % | 23.21 | % | 23.70 | % | ||||||||||||||||||||||
2018 |
3 | 16.065 | 25.287 | 78 | 2.05 | % | 0.20 | % | 0.60 | % | (7.43 | )% | (7.05 | )% | ||||||||||||||||||||||
American Century VP International |
||||||||||||||||||||||||||||||||||||
2022 |
2 | 15.923 | 22.454 | 38 | 1.26 | % | 0.20 | % | 0.60 | % | (25.20 | )% | (24.90 | )% | ||||||||||||||||||||||
2021 |
2 | 21.288 | 29.900 | 47 | 0.16 | % | 0.20 | % | 0.60 | % | 8.10 | % | 8.53 | % | ||||||||||||||||||||||
2020 |
2 | 19.693 | 27.550 | 44 | 0.43 | % | 0.20 | % | 0.60 | % | 25.13 | % | 25.63 | % | ||||||||||||||||||||||
2019 |
2 | 15.738 | 21.930 | 35 | 0.84 | % | 0.20 | % | 0.60 | % | 27.65 | % | 28.16 | % | ||||||||||||||||||||||
2018 |
2 | 12.328 | 17.111 | 26 | 1.38 | % | 0.20 | % | 0.60 | % | (15.73 | )% | (15.39 | )% | ||||||||||||||||||||||
American Century VP Ultra |
||||||||||||||||||||||||||||||||||||
2022 |
2 | 42.131 | 57.545 | 102 | N/A | 0.20 | % | 0.60 | % | (32.78 | )% | (32.51 | )% | |||||||||||||||||||||||
2021 |
2 | 62.674 | 85.264 | 167 | N/A | 0.20 | % | 0.60 | % | 22.43 | % | 22.91 | % | |||||||||||||||||||||||
2020 |
2 | 51.194 | 69.369 | 130 | N/A | 0.20 | % | 0.60 | % | 48.96 | % | 49.55 | % | |||||||||||||||||||||||
2019 |
2 | 34.367 | 46.384 | 89 | N/A | 0.20 | % | 0.60 | % | 33.78 | % | 34.31 | % | |||||||||||||||||||||||
2018 |
2 | 25.690 | 34.535 | 75 | 0.28 | % | 0.20 | % | 0.60 | % | 0.15 | % | 0.56 | % | ||||||||||||||||||||||
American Century VP Value |
||||||||||||||||||||||||||||||||||||
2022 |
10 | 31.384 | 37.308 | 350 | 2.04 | % | 0.20 | % | 0.60 | % | (0.06 | )% | 0.34 | % | ||||||||||||||||||||||
2021 |
11 | 31.402 | 37.181 | 372 | 1.82 | % | 0.20 | % | 0.60 | % | 23.77 | % | 24.26 | % | ||||||||||||||||||||||
2020 |
11 | 25.372 | 29.922 | 326 | 2.01 | % | 0.20 | % | 0.60 | % | 0.38 | % | 0.78 | % | ||||||||||||||||||||||
2019 |
11 | 25.277 | 29.691 | 331 | 2.10 | % | 0.20 | % | 0.60 | % | 26.28 | % | 26.78 | % | ||||||||||||||||||||||
2018 |
13 | 20.017 | 23.420 | 300 | 1.75 | % | 0.20 | % | 0.60 | % | (9.70 | )% | (9.33 | )% |
49
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
Advanced Series Trust |
||||||||||||||||||||||||||||||||||||
AST BlackRock Low Duration Bond (a) |
|
|||||||||||||||||||||||||||||||||||
2022 |
N/A | $ | 19.895 | $ | 19.895 | N/A | N/A | 0.90 | % | 0.90 | % | (1.61 | )% | (1.61 | )% | |||||||||||||||||||||
2021 |
8 | 20.220 | 20.220 | 161 | N/A | 0.90 | % | 0.90 | % | (1.49 | )% | (1.49 | )% | |||||||||||||||||||||||
2020 |
8 | 20.526 | 20.526 | 163 | N/A | 0.90 | % | 0.90 | % | 1.65 | % | 1.65 | % | |||||||||||||||||||||||
2019 |
9 | 20.193 | 20.193 | 176 | N/A | 0.90 | % | 0.90 | % | 3.69 | % | 3.69 | % | |||||||||||||||||||||||
2018 |
9 | 19.475 | 19.475 | 182 | N/A | 0.90 | % | 0.90 | % | (0.16 | )% | (0.16 | )% | |||||||||||||||||||||||
AST BlackRock Loomis Sayles Bond Portfolio (a) |
|
|||||||||||||||||||||||||||||||||||
2022 |
N/A | 29.876 | 29.876 | N/A | N/A | 0.90 | % | 0.90 | % | (3.34 | )% | (3.34 | )% | |||||||||||||||||||||||
2021 |
12 | 30.909 | 30.909 | 363 | N/A | 0.90 | % | 0.90 | % | (2.01 | )% | (2.01 | )% | |||||||||||||||||||||||
2020 |
12 | 31.545 | 31.545 | 380 | N/A | 0.90 | % | 0.90 | % | 6.41 | % | 6.41 | % | |||||||||||||||||||||||
2019 |
13 | 29.645 | 29.645 | 397 | N/A | 0.90 | % | 0.90 | % | 8.25 | % | 8.25 | % | |||||||||||||||||||||||
2018 |
14 | 27.386 | 27.386 | 377 | N/A | 0.90 | % | 0.90 | % | (1.55 | )% | (1.55 | )% | |||||||||||||||||||||||
AST Core Fixed Income Portfolio (b) |
|
|||||||||||||||||||||||||||||||||||
2022 |
44 | 8.716 | 8.716 | 385 | N/A | 0.90 | % | 0.90 | % | (12.84 | )% | (12.84 | )% | |||||||||||||||||||||||
AST International Growth |
||||||||||||||||||||||||||||||||||||
2022 |
22 | 23.354 | 23.354 | 508 | N/A | 0.90 | % | 0.90 | % | (29.32 | )% | (29.32 | )% | |||||||||||||||||||||||
2021 |
23 | 33.042 | 33.042 | 749 | N/A | 0.90 | % | 0.90 | % | 11.50 | % | 11.50 | % | |||||||||||||||||||||||
2020 |
25 | 29.635 | 29.635 | 736 | N/A | 0.90 | % | 0.90 | % | 30.15 | % | 30.15 | % | |||||||||||||||||||||||
2019 |
27 | 22.770 | 22.770 | 614 | N/A | 0.90 | % | 0.90 | % | 30.93 | % | 30.93 | % | |||||||||||||||||||||||
2018 |
30 | 17.391 | 17.391 | 513 | N/A | 0.90 | % | 0.90 | % | (14.11 | )% | (14.11 | )% | |||||||||||||||||||||||
AST Large-Cap Growth Portfolio (f) |
|
|||||||||||||||||||||||||||||||||||
2022 |
976 | 9.490 | 9.490 | 9,258 | N/A | 0.90 | % | 0.90 | % | (5.10 | )% | (5.10 | )% | |||||||||||||||||||||||
AST Large-Cap Value Portfolio (e) |
||||||||||||||||||||||||||||||||||||
2022 |
48 | 62.842 | 62.842 | 3,033 | N/A | 0.90 | % | 0.90 | % | 0.80 | % | 0.80 | % | |||||||||||||||||||||||
2021 |
23 | 62.344 | 62.344 | 1,405 | N/A | 0.90 | % | 0.90 | % | 28.06 | % | 28.06 | % | |||||||||||||||||||||||
2020 |
23 | 48.683 | 48.683 | 1,126 | N/A | 0.90 | % | 0.90 | % | (0.62 | )% | (0.62 | )% | |||||||||||||||||||||||
2019 |
24 | 48.988 | 48.988 | 1,173 | N/A | 0.90 | % | 0.90 | % | 28.37 | % | 28.37 | % | |||||||||||||||||||||||
2018 |
25 | 38.162 | 38.162 | 954 | N/A | 0.90 | % | 0.90 | % | (14.92 | )% | (14.92 | )% | |||||||||||||||||||||||
AST Loomis Sayles Large-Cap Growth Portfolio (a) |
|
|||||||||||||||||||||||||||||||||||
2022 |
N/A | 101.628 | 101.628 | N/A | N/A | 0.90 | % | 0.90 | % | (27.91 | )% | (27.91 | )% | |||||||||||||||||||||||
2021 |
102 | 140.977 | 140.977 | 14,416 | N/A | 0.90 | % | 0.90 | % | 17.30 | % | 17.30 | % | |||||||||||||||||||||||
2020 |
105 | 120.184 | 120.184 | 12,667 | N/A | 0.90 | % | 0.90 | % | 30.42 | % | 30.42 | % | |||||||||||||||||||||||
2019 |
114 | 92.153 | 92.153 | 10,513 | N/A | 0.90 | % | 0.90 | % | 30.46 | % | 30.46 | % | |||||||||||||||||||||||
2018 |
125 | 70.639 | 70.639 | 8,845 | N/A | 0.90 | % | 0.90 | % | (3.56 | )% | (3.56 | )% |
50
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
AST Mid-Cap Growth Portfolio |
|
|||||||||||||||||||||||||||||||||||
2022 |
29 | $ | 71.780 | $ | 71.780 | $ | 2,094 | N/A | 0.90 | % | 0.90 | % | (31.55 | )% | (31.55 | )% | ||||||||||||||||||||
2021 |
31 | 104.862 | 104.862 | 3,260 | N/A | 0.90 | % | 0.90 | % | 9.50 | % | 9.50 | % | |||||||||||||||||||||||
2020 |
32 | 95.764 | 95.764 | 3,097 | N/A | 0.90 | % | 0.90 | % | 33.64 | % | 33.64 | % | |||||||||||||||||||||||
2019 |
35 | 71.660 | 71.660 | 2,509 | N/A | 0.90 | % | 0.90 | % | 28.99 | % | 28.99 | % | |||||||||||||||||||||||
2018 |
38 | 55.553 | 55.553 | 2,106 | N/A | 0.90 | % | 0.90 | % | 18.44 | % | 18.44 | % | |||||||||||||||||||||||
AST Small Cap Growth |
||||||||||||||||||||||||||||||||||||
2022 |
4 | 64.764 | 64.764 | 274 | N/A | 0.90 | % | 0.90 | % | (28.22 | )% | (28.22 | )% | |||||||||||||||||||||||
2021 |
5 | 90.225 | 90.225 | 415 | N/A | 0.90 | % | 0.90 | % | 3.60 | % | 3.60 | % | |||||||||||||||||||||||
2020 |
5 | 87.088 | 87.088 | 416 | N/A | 0.90 | % | 0.90 | % | 47.07 | % | 47.07 | % | |||||||||||||||||||||||
2019 |
5 | 59.217 | 59.217 | 296 | N/A | 0.90 | % | 0.90 | % | 28.96 | % | 28.96 | % | |||||||||||||||||||||||
2018 |
5 | 45.919 | 45.919 | 247 | N/A | 0.90 | % | 0.90 | % | (9.23 | )% | (9.23 | )% | |||||||||||||||||||||||
AST T Rowe Price Asset Allocation |
|
|||||||||||||||||||||||||||||||||||
2022 |
20 | 52.726 | 52.726 | 1,035 | N/A | 0.90 | % | 0.90 | % | (17.09 | )% | (17.09 | )% | |||||||||||||||||||||||
2021 |
21 | 63.597 | 63.597 | 1,324 | N/A | 0.90 | % | 0.90 | % | 11.41 | % | 11.41 | % | |||||||||||||||||||||||
2020 |
21 | 57.085 | 57.085 | 1,175 | N/A | 0.90 | % | 0.90 | % | 11.53 | % | 11.53 | % | |||||||||||||||||||||||
2019 |
22 | 51.183 | 51.183 | 1,141 | N/A | 0.90 | % | 0.90 | % | 19.77 | % | 19.77 | % | |||||||||||||||||||||||
2018 |
25 | 42.736 | 42.736 | 1,057 | N/A | 0.90 | % | 0.90 | % | (6.18 | )% | (6.18 | )% | |||||||||||||||||||||||
AST T Rowe Price Large-Cap Value Portfolio (a) |
|
|||||||||||||||||||||||||||||||||||
2022 |
N/A | 13.767 | 13.767 | N/A | N/A | 0.90 | % | 0.90 | % | 0.70 | % | 0.70 | % | |||||||||||||||||||||||
2021 |
140 | 13.671 | 13.671 | 1,909 | N/A | 0.90 | % | 0.90 | % | 24.42 | % | 24.42 | % | |||||||||||||||||||||||
2020 |
143 | 10.988 | 10.988 | 1,569 | N/A | 0.90 | % | 0.90 | % | 1.18 | % | 1.18 | % | |||||||||||||||||||||||
2019 |
146 | 10.860 | 10.860 | 1,590 | N/A | 0.90 | % | 0.90 | % | 8.60 | % | 8.60 | % | |||||||||||||||||||||||
2018 |
N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
BNY Mellon Investment Portfolio |
|
|||||||||||||||||||||||||||||||||||
BNY Mellon Investment Portfolios MidCap Stock Portfolio - Initial Shares |
|
|||||||||||||||||||||||||||||||||||
2022 |
3 | 42.606 | 42.606 | 111 | 0.69 | % | 0.90 | % | 0.90 | % | (14.84 | )% | (14.84 | )% | ||||||||||||||||||||||
2021 |
3 | 50.032 | 50.032 | 131 | 0.63 | % | 0.90 | % | 0.90 | % | 24.76 | % | 24.76 | % | ||||||||||||||||||||||
2020 |
3 | 40.102 | 40.102 | 106 | 0.70 | % | 0.90 | % | 0.90 | % | 7.14 | % | 7.14 | % | ||||||||||||||||||||||
2019 |
3 | 37.429 | 37.429 | 99 | 0.83 | % | 0.90 | % | 0.90 | % | 19.11 | % | 19.11 | % | ||||||||||||||||||||||
2018 |
4 | 31.424 | 31.424 | 140 | 0.72 | % | 0.90 | % | 0.90 | % | (16.25 | )% | (16.25 | )% |
51
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
BNY Mellon Stock Index Fund |
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BNY Mellon Stock Index Fund Inc. - Initial Shares |
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2022 |
15 | $ | 44.276 | $ | 127.549 | $ | 679 | 1.30 | % | 0.20 | % | 0.60 | % | (18.80 | )% | (18.48 | )% | |||||||||||||||||||
2021 |
17 | 54.422 | 157.089 | 938 | 1.15 | % | 0.20 | % | 0.60 | % | 27.65 | % | 28.16 | % | ||||||||||||||||||||||
2020 |
17 | 42.550 | 123.066 | 734 | 1.47 | % | 0.20 | % | 0.60 | % | 17.30 | % | 17.77 | % | ||||||||||||||||||||||
2019 |
17 | 36.202 | 104.912 | 622 | 1.74 | % | 0.20 | % | 0.60 | % | 30.40 | % | 30.92 | % | ||||||||||||||||||||||
2018 |
19 | 27.707 | 80.453 | 527 | 1.83 | % | 0.20 | % | 0.60 | % | (5.21 | )% | (4.83 | )% | ||||||||||||||||||||||
BNY Mellon Sustainable U.S. Equity Fund |
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BNY Mellon Sustainable U.S. Equity Portfolio Inc. - Initial Shares |
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2022 |
5 | 24.514 | 90.843 | 162 | 0.49 | % | 0.20 | % | 0.90 | % | (23.56 | )% | (23.03 | )% | ||||||||||||||||||||||
2021 |
5 | 32.069 | 118.489 | 213 | 0.75 | % | 0.20 | % | 0.90 | % | 25.86 | % | 26.74 | % | ||||||||||||||||||||||
2020 |
5 | 25.479 | 93.860 | 170 | 0.99 | % | 0.20 | % | 0.90 | % | 23.04 | % | 23.90 | % | ||||||||||||||||||||||
2019 |
5 | 20.708 | 76.060 | 139 | 1.53 | % | 0.20 | % | 0.90 | % | 33.16 | % | 34.09 | % | ||||||||||||||||||||||
2018 |
6 | 15.552 | 56.949 | 114 | 1.82 | % | 0.20 | % | 0.90 | % | (5.26 | )% | (4.59 | )% | ||||||||||||||||||||||
BNY Mellon Variable Investment Fund |
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BNY Mellon VIF Appreciation Portfolio-Initial Shares |
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2022 |
5 | 41.395 | 148.535 | 213 | 0.61 | % | 0.20 | % | 0.60 | % | (18.55 | )% | (18.23 | )% | ||||||||||||||||||||||
2021 |
6 | 50.723 | 182.370 | 283 | 0.44 | % | 0.20 | % | 0.60 | % | 26.37 | % | 26.88 | % | ||||||||||||||||||||||
2020 |
6 | 40.058 | 144.311 | 225 | 0.74 | % | 0.20 | % | 0.60 | % | 22.95 | % | 23.44 | % | ||||||||||||||||||||||
2019 |
6 | 32.516 | 117.370 | 181 | 1.20 | % | 0.20 | % | 0.60 | % | 35.29 | % | 35.83 | % | ||||||||||||||||||||||
2018 |
7 | 23.987 | 86.759 | 158 | 1.37 | % | 0.20 | % | 0.60 | % | (7.41 | )% | (7.04 | )% | ||||||||||||||||||||||
BNY Mellon VIF Opportunistic Small Cap Portfolio -Initial Shares |
|
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2022 |
22 | 33.668 | 188.577 | 762 | N/A | 0.20 | % | 0.60 | % | (17.12 | )% | (16.79 | )% | |||||||||||||||||||||||
2021 |
23 | 40.541 | 227.521 | 954 | 0.11 | % | 0.20 | % | 0.60 | % | 15.77 | % | 16.23 | % | ||||||||||||||||||||||
2020 |
25 | 34.950 | 196.534 | 867 | 0.55 | % | 0.20 | % | 0.60 | % | 19.18 | % | 19.65 | % | ||||||||||||||||||||||
2019 |
24 | 29.268 | 164.909 | 708 | N/A | 0.20 | % | 0.60 | % | 21.05 | % | 21.54 | % | |||||||||||||||||||||||
2018 |
24 | 24.130 | 136.230 | 589 | N/A | 0.20 | % | 0.60 | % | (19.56 | )% | (19.24 | )% | |||||||||||||||||||||||
Deutsche DWS Variable Series I |
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DWS Bond VIP A (c) |
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2021 |
| 2.134 | 18.161 | N/A | 4.30 | % | 0.20 | % | 0.90 | % | (1.01 | )% | (0.44 | )% | ||||||||||||||||||||||
2020 |
19 | 2.150 | 18.347 | 297 | 2.77 | % | 0.20 | % | 0.90 | % | 8.10 | % | 8.86 | % | ||||||||||||||||||||||
2019 |
19 | 1.983 | 16.972 | 283 | 3.11 | % | 0.20 | % | 0.90 | % | 9.64 | % | 10.40 | % | ||||||||||||||||||||||
2018 |
20 | 1.803 | 15.480 | 264 | 4.61 | % | 0.20 | % | 0.90 | % | (3.53 | )% | (2.85 | )% |
52
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
DWS Capital Growth VIP A |
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2022 |
123 | $ | 36.982 | $ | 91.041 | $ | 5,072 | 0.09 | % | 0.20 | % | 0.90 | % | (31.36 | )% | (30.88 | )% | |||||||||||||||||||
2021 |
129 | 53.875 | 132.233 | 7,806 | 0.21 | % | 0.20 | % | 0.90 | % | 21.68 | % | 22.53 | % | ||||||||||||||||||||||
2020 |
133 | 44.275 | 108.347 | 6,583 | 0.48 | % | 0.20 | % | 0.90 | % | 37.80 | % | 38.77 | % | ||||||||||||||||||||||
2019 |
144 | 32.129 | 78.391 | 5,174 | 0.43 | % | 0.20 | % | 0.90 | % | 35.91 | % | 36.86 | % | ||||||||||||||||||||||
2018 |
154 | 23.639 | 57.505 | 4,047 | 0.78 | % | 0.20 | % | 0.90 | % | (2.48 | )% | (1.79 | )% | ||||||||||||||||||||||
DWS Core Equity VIP A |
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2022 |
38 | 36.148 | 50.137 | 1,539 | 0.76 | % | 0.20 | % | 0.90 | % | (16.28 | )% | (15.70 | )% | ||||||||||||||||||||||
2021 |
40 | 43.179 | 59.473 | 1,932 | 0.75 | % | 0.20 | % | 0.90 | % | 24.18 | % | 25.05 | % | ||||||||||||||||||||||
2020 |
43 | 34.770 | 47.560 | 1,654 | 1.27 | % | 0.20 | % | 0.90 | % | 15.10 | % | 15.90 | % | ||||||||||||||||||||||
2019 |
46 | 30.209 | 41.034 | 1,526 | 1.13 | % | 0.20 | % | 0.90 | % | 29.14 | % | 30.04 | % | ||||||||||||||||||||||
2018 |
50 | 23.393 | 31.555 | 1,272 | 1.91 | % | 0.20 | % | 0.90 | % | (6.53 | )% | (5.87 | )% | ||||||||||||||||||||||
DWS Core Equity VIP B |
||||||||||||||||||||||||||||||||||||
2022 |
5 | 36.710 | 36.710 | 194 | 0.45 | % | 0.90 | % | 0.90 | % | (16.48 | )% | (16.48 | )% | ||||||||||||||||||||||
2021 |
6 | 43.952 | 43.952 | 248 | 0.45 | % | 0.90 | % | 0.90 | % | 23.83 | % | 23.83 | % | ||||||||||||||||||||||
2020 |
6 | 35.494 | 35.494 | 202 | 1.00 | % | 0.90 | % | 0.90 | % | 14.64 | % | 14.64 | % | ||||||||||||||||||||||
2019 |
6 | 30.962 | 30.962 | 186 | 0.78 | % | 0.90 | % | 0.90 | % | 28.76 | % | 28.76 | % | ||||||||||||||||||||||
2018 |
7 | 24.047 | 24.047 | 167 | 1.68 | % | 0.90 | % | 0.90 | % | (6.87 | )% | (6.87 | )% | ||||||||||||||||||||||
DWS CROCI® International VIP A |
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2022 |
16 | 10.328 | 17.691 | 234 | 2.99 | % | 0.20 | % | 0.90 | % | (13.96 | )% | (13.36 | )% | ||||||||||||||||||||||
2021 |
17 | 12.004 | 20.561 | 278 | 2.49 | % | 0.20 | % | 0.90 | % | 8.26 | % | 9.02 | % | ||||||||||||||||||||||
2020 |
17 | 11.088 | 18.992 | 262 | 3.07 | % | 0.20 | % | 0.90 | % | 1.70 | % | 2.41 | % | ||||||||||||||||||||||
2019 |
16 | 10.903 | 18.675 | 249 | 3.06 | % | 0.20 | % | 0.90 | % | 20.69 | % | 21.53 | % | ||||||||||||||||||||||
2018 |
17 | 9.034 | 15.474 | 208 | 1.08 | % | 0.20 | % | 0.90 | % | (15.16 | )% | (14.57 | )% | ||||||||||||||||||||||
DWS CROCI® International VIP B |
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2022 |
14 | 16.476 | 16.476 | 235 | 2.74 | % | 0.90 | % | 0.90 | % | (14.28 | )% | (14.28 | )% | ||||||||||||||||||||||
2021 |
15 | 19.222 | 19.222 | 296 | 2.21 | % | 0.90 | % | 0.90 | % | 7.97 | % | 7.97 | % | ||||||||||||||||||||||
2020 |
15 | 17.803 | 17.803 | 271 | 2.76 | % | 0.90 | % | 0.90 | % | 1.58 | % | 1.58 | % | ||||||||||||||||||||||
2019 |
14 | 17.527 | 17.527 | 244 | 2.70 | % | 0.90 | % | 0.90 | % | 20.15 | % | 20.15 | % | ||||||||||||||||||||||
2018 |
14 | 14.587 | 14.587 | 202 | 0.82 | % | 0.90 | % | 0.90 | % | (15.33 | )% | (15.33 | )% | ||||||||||||||||||||||
DWS Global Small Cap VIP A |
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2022 |
8 | 30.293 | 30.293 | 251 | 0.51 | % | 0.90 | % | 0.90 | % | (24.73 | )% | (24.73 | )% | ||||||||||||||||||||||
2021 |
8 | 40.246 | 40.246 | 335 | 0.34 | % | 0.90 | % | 0.90 | % | 13.92 | % | 13.92 | % | ||||||||||||||||||||||
2020 |
10 | 35.330 | 35.330 | 349 | 0.73 | % | 0.90 | % | 0.90 | % | 16.31 | % | 16.31 | % | ||||||||||||||||||||||
2019 |
11 | 30.374 | 30.374 | 340 | N/A | 0.90 | % | 0.90 | % | 20.21 | % | 20.21 | % | |||||||||||||||||||||||
2018 |
13 | 25.268 | 25.268 | 331 | 0.30 | % | 0.90 | % | 0.90 | % | (21.22 | )% | (21.22 | )% |
53
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
Deutsche DWS Variable Series II |
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DWS CROCI® U.S. VIP A |
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2022 |
277 | $ | 2.265 | $ | 26.635 | $ | 1,811 | 1.71 | % | 0.90 | % | 0.90 | % | (16.15 | )% | (16.15 | )% | |||||||||||||||||||
2021 |
292 | 2.702 | 31.765 | 2,212 | 1.93 | % | 0.90 | % | 0.90 | % | 25.56 | % | 25.56 | % | ||||||||||||||||||||||
2020 |
292 | 2.152 | 25.300 | 1,780 | 2.07 | % | 0.90 | % | 0.90 | % | (12.94 | )% | (12.94 | )% | ||||||||||||||||||||||
2019 |
279 | 2.472 | 29.061 | 2,026 | 1.95 | % | 0.90 | % | 0.90 | % | 31.77 | % | 31.77 | % | ||||||||||||||||||||||
2018 |
286 | 1.876 | 22.055 | 1,595 | 2.61 | % | 0.90 | % | 0.90 | % | (11.30 | )% | (11.30 | )% | ||||||||||||||||||||||
DWS Global Equity VIP A (c) |
||||||||||||||||||||||||||||||||||||
2021 |
| 6.067 | 30.163 | N/A | 1.24 | % | 0.90 | % | 0.90 | % | 14.99 | % | 14.99 | % | ||||||||||||||||||||||
2020 |
112 | 5.276 | 26.231 | 700 | 0.62 | % | 0.90 | % | 0.90 | % | 23.41 | % | 23.41 | % | ||||||||||||||||||||||
2019 |
115 | 4.275 | 21.255 | 582 | 0.54 | % | 0.90 | % | 0.90 | % | 35.04 | % | 35.04 | % | ||||||||||||||||||||||
2018 |
129 | 3.166 | 15.740 | 476 | 0.80 | % | 0.90 | % | 0.90 | % | (11.91 | )% | (11.91 | )% | ||||||||||||||||||||||
DWS Global Income Builder VIP A |
|
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2022 |
129 | 5.538 | 22.754 | 1,164 | 2.85 | % | 0.20 | % | 0.90 | % | (15.74 | )% | (15.15 | )% | ||||||||||||||||||||||
2021 |
143 | 6.552 | 26.817 | 1,488 | 2.44 | % | 0.20 | % | 0.90 | % | 9.97 | % | 10.73 | % | ||||||||||||||||||||||
2020 |
160 | 5.941 | 24.217 | 1,471 | 3.03 | % | 0.20 | % | 0.90 | % | 7.31 | % | 8.06 | % | ||||||||||||||||||||||
2019 |
182 | 5.520 | 22.411 | 1,513 | 3.92 | % | 0.20 | % | 0.90 | % | 19.09 | % | 19.92 | % | ||||||||||||||||||||||
2018 |
189 | 4.621 | 18.687 | 1,370 | 3.95 | % | 0.20 | % | 0.90 | % | (8.49 | )% | (7.85 | )% | ||||||||||||||||||||||
DWS Government Money Market VIP A |
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2022 |
1,138 | 1.205 | 14.069 | 2,646 | 1.07 | % | 0.00 | % | 0.90 | % | 0.41 | % | 1.31 | % | ||||||||||||||||||||||
2021 |
1,276 | 1.196 | 13.887 | 2,871 | 0.01 | % | 0.00 | % | 0.90 | % | (0.88 | )% | 0.01 | % | ||||||||||||||||||||||
2020 |
867 | 1.203 | 13.886 | 1,977 | 0.24 | % | 0.00 | % | 0.90 | % | (0.66 | )% | 0.24 | % | ||||||||||||||||||||||
2019 |
619 | 1.208 | 13.853 | 1,308 | 1.80 | % | 0.00 | % | 0.90 | % | 0.86 | % | 1.77 | % | ||||||||||||||||||||||
2018 |
664 | 1.194 | 13.612 | 1,354 | 1.36 | % | 0.00 | % | 0.90 | % | 0.48 | % | 1.39 | % | ||||||||||||||||||||||
DWS High Income VIP A |
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2022 |
91 | 3.208 | 26.301 | 619 | 5.09 | % | 0.90 | % | 0.90 | % | (9.69 | )% | (9.69 | )% | ||||||||||||||||||||||
2021 |
97 | 3.552 | 29.124 | 711 | 4.59 | % | 0.90 | % | 0.90 | % | 3.08 | % | 3.08 | % | ||||||||||||||||||||||
2020 |
94 | 3.446 | 28.255 | 679 | 5.94 | % | 0.90 | % | 0.90 | % | 5.29 | % | 5.29 | % | ||||||||||||||||||||||
2019 |
105 | 3.273 | 26.835 | 853 | 5.87 | % | 0.90 | % | 0.90 | % | 14.66 | % | 14.66 | % | ||||||||||||||||||||||
2018 |
114 | 2.855 | 23.404 | 791 | 7.95 | % | 0.90 | % | 0.90 | % | (3.39 | )% | (3.39 | )% | ||||||||||||||||||||||
DWS International Growth VIP A |
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2022 |
| 24.173 | 24.173 | 4 | 0.94 | % | 0.90 | % | 0.90 | % | (29.15 | )% | (29.15 | )% | ||||||||||||||||||||||
2021 |
| 34.118 | 34.118 | 5 | 0.43 | % | 0.90 | % | 0.90 | % | 7.15 | % | 7.15 | % | ||||||||||||||||||||||
2020 |
| 31.843 | 31.843 | 8 | 1.33 | % | 0.90 | % | 0.90 | % | 21.59 | % | 21.59 | % | ||||||||||||||||||||||
2019 |
| 26.188 | 26.188 | 7 | 1.68 | % | 0.90 | % | 0.90 | % | 30.05 | % | 30.05 | % | ||||||||||||||||||||||
2018 |
| 20.136 | 20.136 | 9 | 1.02 | % | 0.90 | % | 0.90 | % | (17.44 | )% | (17.44 | )% |
54
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
DWS Small Mid Cap Growth VIP A |
|
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2022 |
611 | $ | 3.637 | $ | 34.424 | $ | 3,509 | N/A | 0.20 | % | 0.90 | % | (28.66 | )% | (28.16 | )% | ||||||||||||||||||||
2021 |
640 | 5.098 | 47.919 | 5,107 | 0.04 | % | 0.20 | % | 0.90 | % | 12.83 | % | 13.61 | % | ||||||||||||||||||||||
2020 |
672 | 4.519 | 42.177 | 4,784 | 0.04 | % | 0.20 | % | 0.90 | % | 29.02 | % | 29.02 | % | ||||||||||||||||||||||
2019 |
718 | 3.502 | 32.464 | 3,966 | N/A | 0.20 | % | 0.90 | % | 21.32 | % | 22.17 | % | |||||||||||||||||||||||
2018 |
755 | 2.887 | 26.573 | 3,424 | N/A | 0.20 | % | 0.90 | % | (14.36 | )% | (13.76 | )% | |||||||||||||||||||||||
DWS Small Mid Cap Value VIP A |
||||||||||||||||||||||||||||||||||||
2022 |
1 | 56.778 | 56.778 | 76 | 0.82 | % | 0.90 | % | 0.90 | % | (16.55 | )% | (16.55 | )% | ||||||||||||||||||||||
2021 |
1 | 68.042 | 68.042 | 91 | 1.30 | % | 0.90 | % | 0.90 | % | 29.34 | % | 29.34 | % | ||||||||||||||||||||||
2020 |
1 | 52.608 | 52.608 | 71 | 1.18 | % | 0.90 | % | 0.90 | % | (1.68 | )% | (1.68 | )% | ||||||||||||||||||||||
2019 |
1 | 53.509 | 53.509 | 73 | 0.81 | % | 0.90 | % | 0.90 | % | 20.43 | % | 20.43 | % | ||||||||||||||||||||||
2018 |
2 | 44.432 | 44.432 | 73 | 1.44 | % | 0.90 | % | 0.90 | % | (16.77 | )% | (16.77 | )% | ||||||||||||||||||||||
Deutsche DWS Investments VIT Funds |
|
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DWS Equity 500 Index VIP A |
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2022 |
18 | 36.305 | 36.305 | 650 | 1.11 | % | 0.90 | % | 0.90 | % | (19.07 | )% | (19.07 | )% | ||||||||||||||||||||||
2021 |
20 | 44.857 | 44.857 | 903 | 1.46 | % | 0.90 | % | 0.90 | % | 27.25 | % | 27.25 | % | ||||||||||||||||||||||
2020 |
21 | 35.250 | 35.250 | 731 | 1.47 | % | 0.90 | % | 0.90 | % | 17.04 | % | 17.04 | % | ||||||||||||||||||||||
2019 |
19 | 30.118 | 30.118 | 582 | 1.91 | % | 0.90 | % | 0.90 | % | 30.02 | % | 30.02 | % | ||||||||||||||||||||||
2018 |
22 | 23.164 | 23.164 | 514 | 1.83 | % | 0.90 | % | 0.90 | % | (5.51 | )% | (5.51 | )% | ||||||||||||||||||||||
DWS Small Cap Index VIP A |
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2022 |
4 | 32.702 | 44.378 | 136 | 0.85 | % | 0.20 | % | 0.60 | % | (21.11 | )% | (20.79 | )% | ||||||||||||||||||||||
2021 |
4 | 41.369 | 56.252 | 168 | 0.89 | % | 0.20 | % | 0.60 | % | 13.82 | % | 14.27 | % | ||||||||||||||||||||||
2020 |
4 | 36.274 | 49.422 | 153 | 0.91 | % | 0.20 | % | 0.60 | % | 18.72 | % | 19.19 | % | ||||||||||||||||||||||
2019 |
4 | 30.494 | 41.630 | 122 | 1.00 | % | 0.20 | % | 0.60 | % | 24.48 | % | 24.97 | % | ||||||||||||||||||||||
2018 |
5 | 24.449 | 33.444 | 112 | 1.04 | % | 0.20 | % | 0.60 | % | (11.76 | )% | (11.41 | )% | ||||||||||||||||||||||
Fidelity Variable Insurance Products Funds |
|
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Fidelity VIP II Contrafund |
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2022 |
24 | 126.325 | 126.325 | 3,061 | 0.46 | % | 0.90 | % | 0.90 | % | (26.97 | )% | (26.97 | )% | ||||||||||||||||||||||
2021 |
26 | 172.975 | 172.975 | 4,458 | 0.06 | % | 0.90 | % | 0.90 | % | 26.70 | % | 26.70 | % | ||||||||||||||||||||||
2020 |
28 | 136.529 | 136.529 | 3,764 | 0.24 | % | 0.90 | % | 0.90 | % | 29.40 | % | 29.40 | % | ||||||||||||||||||||||
2019 |
31 | 105.507 | 105.507 | 3,322 | 0.47 | % | 0.90 | % | 0.90 | % | 30.40 | % | 30.40 | % | ||||||||||||||||||||||
2018 |
34 | 80.908 | 80.908 | 2,746 | 0.73 | % | 0.90 | % | 0.90 | % | (7.22 | )% | (7.22 | )% |
55
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
Fidelity VIP Equity Income |
||||||||||||||||||||||||||||||||||||
2022 |
22 | $ | 37.116 | $ | 93.683 | $ | 1,153 | 1.79 | % | 0.20 | % | 0.90 | % | (5.80 | )% | (5.15 | )% | |||||||||||||||||||
2021 |
24 | 39.208 | 99.455 | 1,333 | 1.94 | % | 0.20 | % | 0.90 | % | 23.78 | % | 24.64 | % | ||||||||||||||||||||||
2020 |
25 | 31.519 | 80.349 | 1,141 | 1.64 | % | 0.20 | % | 0.90 | % | 5.74 | % | 6.48 | % | ||||||||||||||||||||||
2019 |
26 | 29.660 | 75.985 | 1,114 | 2.03 | % | 0.20 | % | 0.90 | % | 26.31 | % | 27.19 | % | ||||||||||||||||||||||
2018 |
28 | 23.366 | 60.159 | 948 | 2.30 | % | 0.20 | % | 0.90 | % | (9.11 | )% | (8.48 | )% | ||||||||||||||||||||||
Fidelity VIP Growth |
||||||||||||||||||||||||||||||||||||
2022 |
17 | 56.327 | 166.172 | 983 | 0.59 | % | 0.20 | % | 0.60 | % | (24.91 | )% | (24.61 | )% | ||||||||||||||||||||||
2021 |
20 | 74.860 | 221.286 | 1,540 | N/A | 0.20 | % | 0.60 | % | 22.48 | % | 22.97 | % | |||||||||||||||||||||||
2020 |
21 | 60.999 | 180.671 | 1,269 | 0.07 | % | 0.20 | % | 0.60 | % | 43.04 | % | 43.61 | % | ||||||||||||||||||||||
2019 |
23 | 42.561 | 126.310 | 982 | 0.27 | % | 0.20 | % | 0.60 | % | 33.51 | % | 34.05 | % | ||||||||||||||||||||||
2018 |
26 | 31.815 | 94.607 | 817 | 0.26 | % | 0.20 | % | 0.60 | % | (0.77 | )% | (0.37 | )% | ||||||||||||||||||||||
Fidelity VIP Growth Opportunities |
|
|||||||||||||||||||||||||||||||||||
2022 |
16 | 84.732 | 84.732 | 1,350 | N/A | 0.90 | % | 0.90 | % | (38.70 | )% | (38.70 | )% | |||||||||||||||||||||||
2021 |
17 | 138.229 | 138.229 | 2,340 | N/A | 0.90 | % | 0.90 | % | 10.94 | % | 10.94 | % | |||||||||||||||||||||||
2020 |
18 | 124.594 | 124.594 | 2,235 | 0.01 | % | 0.90 | % | 0.90 | % | 67.15 | % | 67.15 | % | ||||||||||||||||||||||
2019 |
22 | 74.538 | 74.538 | 1,613 | 0.16 | % | 0.90 | % | 0.90 | % | 39.58 | % | 39.58 | % | ||||||||||||||||||||||
2018 |
24 | 53.400 | 53.400 | 1,296 | 0.13 | % | 0.90 | % | 0.90 | % | 11.45 | % | 11.45 | % | ||||||||||||||||||||||
Fidelity VIP High Income |
||||||||||||||||||||||||||||||||||||
2022 |
6 | 20.743 | 22.705 | 139 | 4.96 | % | 0.20 | % | 0.90 | % | (12.16 | )% | (11.55 | )% | ||||||||||||||||||||||
2021 |
6 | 23.499 | 25.849 | 162 | 5.54 | % | 0.20 | % | 0.90 | % | 3.48 | % | 4.20 | % | ||||||||||||||||||||||
2020 |
6 | 22.596 | 24.980 | 144 | 4.81 | % | 0.20 | % | 0.90 | % | 1.83 | % | 2.54 | % | ||||||||||||||||||||||
2019 |
6 | 22.080 | 24.531 | 143 | 5.14 | % | 0.20 | % | 0.90 | % | 14.08 | % | 14.88 | % | ||||||||||||||||||||||
2018 |
7 | 19.259 | 21.504 | 140 | 5.23 | % | 0.20 | % | 0.90 | % | (4.15 | )% | (3.48 | )% | ||||||||||||||||||||||
Fidelity VIP II Index 500 |
||||||||||||||||||||||||||||||||||||
2022 |
5 | 539.585 | 539.585 | 2,868 | 1.37 | % | 0.90 | % | 0.90 | % | (18.94 | )% | (18.94 | )% | ||||||||||||||||||||||
2021 |
6 | 665.670 | 665.670 | 3,838 | 1.26 | % | 0.90 | % | 0.90 | % | 27.43 | % | 27.43 | % | ||||||||||||||||||||||
2020 |
6 | 522.379 | 522.379 | 3,178 | 1.59 | % | 0.90 | % | 0.90 | % | 17.18 | % | 17.18 | % | ||||||||||||||||||||||
2019 |
7 | 445.774 | 445.774 | 3,074 | 1.98 | % | 0.90 | % | 0.90 | % | 30.18 | % | 30.18 | % | ||||||||||||||||||||||
2018 |
8 | 342.432 | 342.432 | 2,667 | 1.95 | % | 0.90 | % | 0.90 | % | (5.35 | )% | (5.35 | )% | ||||||||||||||||||||||
Fidelity VIP Overseas |
||||||||||||||||||||||||||||||||||||
2022 |
4 | 20.840 | 41.388 | 76 | 0.97 | % | 0.20 | % | 0.60 | % | (24.93 | )% | (24.63 | )% | ||||||||||||||||||||||
2021 |
3 | 27.707 | 55.135 | 101 | 0.54 | % | 0.20 | % | 0.60 | % | 18.99 | % | 19.46 | % | ||||||||||||||||||||||
2020 |
4 | 23.240 | 46.338 | 87 | 0.38 | % | 0.20 | % | 0.60 | % | 14.92 | % | 15.38 | % | ||||||||||||||||||||||
2019 |
5 | 20.182 | 40.320 | 92 | 1.72 | % | 0.20 | % | 0.60 | % | 27.00 | % | 27.51 | % | ||||||||||||||||||||||
2018 |
5 | 15.859 | 31.747 | 80 | 1.66 | % | 0.20 | % | 0.60 | % | (15.32 | )% | (14.98 | )% |
56
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
Franklin Templeton Variable Insurance Products Trust |
|
|||||||||||||||||||||||||||||||||||
FTVIP Templeton Developing Markets Fund CL 2 |
|
|||||||||||||||||||||||||||||||||||
2022 |
7 | $ | 16.015 | $ | 17.262 | $ | 114 | 2.24 | % | 0.20 | % | 0.90 | % | (22.68 | )% | (22.14 | )% | |||||||||||||||||||
2021 |
8 | 20.712 | 22.259 | 165 | 0.89 | % | 0.20 | % | 0.90 | % | (6.58 | )% | (5.93 | )% | ||||||||||||||||||||||
2020 |
8 | 22.171 | 23.756 | 169 | 3.75 | % | 0.20 | % | 0.90 | % | 16.14 | % | 16.95 | % | ||||||||||||||||||||||
2019 |
7 | 19.090 | 20.394 | 132 | 0.98 | % | 0.20 | % | 0.90 | % | 25.57 | % | 26.44 | % | ||||||||||||||||||||||
2018 |
7 | 15.203 | 16.193 | 103 | 0.87 | % | 0.20 | % | 0.90 | % | (16.55 | )% | (15.96 | )% | ||||||||||||||||||||||
FTVIP Templeton Foreign Fund CL 2 |
|
|||||||||||||||||||||||||||||||||||
2022 |
4 | 15.130 | 34.301 | 55 | 2.90 | % | 0.20 | % | 0.60 | % | (8.16 | )% | (7.79 | )% | ||||||||||||||||||||||
2021 |
4 | 16.440 | 37.347 | 61 | 1.91 | % | 0.20 | % | 0.60 | % | 3.54 | % | 3.95 | % | ||||||||||||||||||||||
2020 |
4 | 15.847 | 36.071 | 56 | 2.97 | % | 0.20 | % | 0.60 | % | (1.75 | )% | (1.36 | )% | ||||||||||||||||||||||
2019 |
3 | 16.097 | 36.712 | 52 | 1.70 | % | 0.20 | % | 0.60 | % | 11.86 | % | 12.30 | % | ||||||||||||||||||||||
2018 |
3 | 14.362 | 32.821 | 45 | 2.82 | % | 0.20 | % | 0.60 | % | (15.95 | )% | (15.61 | )% | ||||||||||||||||||||||
FTVIP Templeton Global Bond Fund CL 2 |
|
|||||||||||||||||||||||||||||||||||
2022 |
3 | 13.987 | 32.183 | 41 | N/A | 0.20 | % | 0.60 | % | (5.52 | )% | (5.14 | )% | |||||||||||||||||||||||
2021 |
3 | 14.774 | 34.062 | 43 | N/A | 0.20 | % | 0.60 | % | (5.56 | )% | (5.18 | )% | |||||||||||||||||||||||
2020 |
3 | 15.613 | 36.068 | 42 | 10.46 | % | 0.20 | % | 0.60 | % | (5.85 | )% | (5.47 | )% | ||||||||||||||||||||||
2019 |
6 | 16.549 | 38.307 | 100 | 7.00 | % | 0.20 | % | 0.60 | % | 1.40 | % | 1.81 | % | ||||||||||||||||||||||
2018 |
6 | 16.287 | 37.777 | 102 | N/A | 0.20 | % | 0.60 | % | 1.33 | % | 1.73 | % | |||||||||||||||||||||||
Invesco Variable Insurance Funds |
|
|||||||||||||||||||||||||||||||||||
Invesco V.I. Discovery Mid Cap Growth Fund Series I |
|
|||||||||||||||||||||||||||||||||||
2022 |
5 | 11.995 | 12.123 | 63 | N/A | 0.20 | % | 0.60 | % | (31.39 | )% | (31.12 | )% | |||||||||||||||||||||||
2021 |
6 | 17.483 | 17.600 | 105 | N/A | 0.20 | % | 0.60 | % | 18.39 | % | 18.86 | % | |||||||||||||||||||||||
2020 |
7 | 14.768 | 14.807 | 103 | N/A | 0.20 | % | 0.60 | % | 47.68 | % | 48.07 | % | |||||||||||||||||||||||
2019 |
N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
2018 |
N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
Invesco V.I. Diversified Dividend Fund Series I |
|
|||||||||||||||||||||||||||||||||||
2022 |
3 | 21.249 | 27.468 | 79 | 1.76 | % | 0.20 | % | 0.60 | % | (2.26 | )% | (1.88 | )% | ||||||||||||||||||||||
2021 |
4 | 18.396 | 23.592 | 100 | 2.16 | % | 0.20 | % | 0.60 | % | 18.18 | % | 18.66 | % | ||||||||||||||||||||||
2020 |
4 | 18.396 | 23.592 | 92 | 2.97 | % | 0.20 | % | 0.60 | % | (0.46 | )% | (0.06 | )% | ||||||||||||||||||||||
2019 |
3 | 18.480 | 23.605 | 78 | 2.84 | % | 0.20 | % | 0.60 | % | 24.35 | % | 24.84 | % | ||||||||||||||||||||||
2018 |
4 | 14.862 | 18.908 | 71 | 2.51 | % | 0.20 | % | 0.60 | % | (8.13 | )% | (7.76 | )% |
57
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
Invesco V.I. Equity and Income Fund Series I (d) |
|
|||||||||||||||||||||||||||||||||||
2022 |
| $ | 9.634 | $ | 9.634 | $ | | 1.72 | % | 0.90 | % | 0.90 | % | (8.33 | )% | (8.33 | )% | |||||||||||||||||||
2021 |
| 10.510 | 10.510 | 164 | 3.62 | % | 0.90 | % | 0.90 | % | 5.10 | % | 5.10 | % | ||||||||||||||||||||||
Invesco V.I. Managed Volatility Fund (c) |
|
|||||||||||||||||||||||||||||||||||
2021 |
| 24.560 | 24.560 | | N/A | 0.90 | % | 0.90 | % | 12.83 | % | 12.83 | % | |||||||||||||||||||||||
2020 |
| 22.850 | 22.850 | | 0.01 | % | 0.90 | % | 0.90 | % | (2.37 | )% | (2.37 | )% | ||||||||||||||||||||||
2019 |
2 | 23.405 | 23.405 | 54 | 1.40 | % | 0.90 | % | 0.90 | % | 17.53 | % | 17.53 | % | ||||||||||||||||||||||
2018 |
2 | 19.915 | 19.915 | 46 | 1.79 | % | 0.90 | % | 0.90 | % | (11.80 | )% | (11.80 | )% | ||||||||||||||||||||||
Invesco V.I. Technology Fund Series I |
|
|||||||||||||||||||||||||||||||||||
2022 |
4 | 40.139 | 45.002 | 185 | N/A | 0.20 | % | 0.60 | % | (40.31 | )% | (40.07 | )% | |||||||||||||||||||||||
2021 |
4 | 67.244 | 75.090 | 288 | N/A | 0.20 | % | 0.60 | % | 13.73 | % | 14.18 | % | |||||||||||||||||||||||
2020 |
4 | 59.126 | 65.763 | 285 | N/A | 0.20 | % | 0.60 | % | 45.24 | % | 45.82 | % | |||||||||||||||||||||||
2019 |
5 | 40.708 | 45.098 | 217 | N/A | 0.20 | % | 0.60 | % | 35.07 | % | 35.61 | % | |||||||||||||||||||||||
2018 |
5 | 30.139 | 33.256 | 165 | N/A | 0.20 | % | 0.60 | % | (1.05 | )% | (0.65 | )% | |||||||||||||||||||||||
Janus Aspen Series |
|
|||||||||||||||||||||||||||||||||||
Janus Henderson Balanced Portfolio I-S |
|
|||||||||||||||||||||||||||||||||||
2022 |
58 | 32.828 | 103.377 | 1,916 | 1.19 | % | 0.20 | % | 0.60 | % | (16.90 | )% | (16.57 | )% | ||||||||||||||||||||||
2021 |
61 | 39.426 | 124.400 | 2,394 | 0.91 | % | 0.20 | % | 0.60 | % | 16.50 | % | 16.96 | % | ||||||||||||||||||||||
2020 |
59 | 33.775 | 106.784 | 2,012 | 1.73 | % | 0.20 | % | 0.60 | % | 13.63 | % | 14.08 | % | ||||||||||||||||||||||
2019 |
62 | 29.665 | 93.975 | 1,857 | 1.97 | % | 0.20 | % | 0.60 | % | 21.86 | % | 22.34 | % | ||||||||||||||||||||||
2018 |
61 | 24.296 | 77.119 | 1,494 | 2.29 | % | 0.20 | % | 0.60 | % | 0.08 | % | 0.48 | % | ||||||||||||||||||||||
Janus Henderson Enterprise Portfolio I-S |
|
|||||||||||||||||||||||||||||||||||
2022 |
25 | 57.082 | 163.849 | 1,453 | 0.19 | % | 0.20 | % | 0.60 | % | (16.44 | )% | (16.11 | )% | ||||||||||||||||||||||
2021 |
26 | 68.178 | 196.088 | 1,783 | 0.32 | % | 0.20 | % | 0.60 | % | 16.13 | % | 16.60 | % | ||||||||||||||||||||||
2020 |
28 | 58.590 | 168.847 | 1,647 | 0.07 | % | 0.20 | % | 0.60 | % | 18.76 | % | 19.24 | % | ||||||||||||||||||||||
2019 |
35 | 49.236 | 142.173 | 1,733 | 0.21 | % | 0.20 | % | 0.60 | % | 34.68 | % | 35.21 | % | ||||||||||||||||||||||
2018 |
38 | 36.486 | 105.566 | 1,382 | 0.26 | % | 0.20 | % | 0.60 | % | (1.01 | )% | (0.61 | )% | ||||||||||||||||||||||
Janus Henderson Flexible Bond Portfolio I-S |
|
|||||||||||||||||||||||||||||||||||
2022 |
5 | 15.887 | 27.169 | 75 | 2.21 | % | 0.20 | % | 0.60 | % | (14.17 | )% | (13.83 | )% | ||||||||||||||||||||||
2021 |
6 | 18.474 | 31.655 | 105 | 2.08 | % | 0.20 | % | 0.60 | % | (1.49 | )% | (1.10 | )% | ||||||||||||||||||||||
2020 |
5 | 18.716 | 32.134 | 97 | 2.80 | % | 0.20 | % | 0.60 | % | 9.82 | % | 10.26 | % | ||||||||||||||||||||||
2019 |
5 | 17.008 | 29.260 | 89 | 2.86 | % | 0.20 | % | 0.60 | % | 8.92 | % | 9.35 | % | ||||||||||||||||||||||
2018 |
7 | 15.584 | 26.864 | 110 | 3.16 | % | 0.20 | % | 0.60 | % | (1.60 | )% | (1.20 | )% |
58
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
At December 31, | For the year ended December 31, | |||||||||||||||||||||||||||||||||||
Net | Investment | |||||||||||||||||||||||||||||||||||
Units | Unit Fair Value | Assets (1) | Income | Expense Ratio (3) | Total Returns (4) | |||||||||||||||||||||||||||||||
(000s) | Lowest | Highest | (000s) | Ratio (2) | Lowest | Highest | Lowest | Highest | ||||||||||||||||||||||||||||
Janus Henderson Forty Portfolio I-S |
|
|||||||||||||||||||||||||||||||||||
2022 |
18 | $ | 120.188 | $ | 120.188 | $ | 2,148 | 0.17 | % | 0.90 | % | 0.90 | % | (34.14 | )% | (34.14 | )% | |||||||||||||||||||
2021 |
18 | 182.502 | 182.502 | 3,375 | N/A | 0.90 | % | 0.90 | % | 21.80 | % | 21.80 | % | |||||||||||||||||||||||
2020 |
20 | 149.837 | 149.837 | 2,938 | 0.26 | % | 0.90 | % | 0.90 | % | 38.16 | % | 38.16 | % | ||||||||||||||||||||||
2019 |
21 | 108.453 | 108.453 | 2,322 | 0.16 | % | 0.90 | % | 0.90 | % | 35.94 | % | 35.94 | % | ||||||||||||||||||||||
2018 |
23 | 79.782 | 79.782 | 1,845 | N/A | 0.90 | % | 0.90 | % | 1.07 | % | 1.07 | % | |||||||||||||||||||||||
Janus Henderson Global Research Portfolio I-S |
|
|||||||||||||||||||||||||||||||||||
2022 |
29 | 31.700 | 79.364 | 921 | 0.98 | % | 0.20 | % | 0.60 | % | (19.89 | )% | (19.57 | )% | ||||||||||||||||||||||
2021 |
30 | 39.492 | 99.070 | 1,172 | 0.53 | % | 0.20 | % | 0.60 | % | 17.39 | % | 17.85 | % | ||||||||||||||||||||||
2020 |
31 | 33.576 | 84.397 | 1,039 | 0.67 | % | 0.20 | % | 0.60 | % | 19.34 | % | 19.82 | % | ||||||||||||||||||||||
2019 |
31 | 28.078 | 70.717 | 873 | 1.02 | % | 0.20 | % | 0.60 | % | 28.27 | % | 28.79 | % | ||||||||||||||||||||||
2018 |
33 | 21.846 | 55.130 | 731 | 1.22 | % | 0.20 | % | 0.60 | % | (7.42 | )% | (7.05 | )% | ||||||||||||||||||||||
Janus Henderson Overseas Portfolio I-S |
|
|||||||||||||||||||||||||||||||||||
2022 |
29 | 20.223 | 79.406 | 583 | 1.64 | % | 0.20 | % | 0.60 | % | (9.15 | )% | (8.79 | )% | ||||||||||||||||||||||
2021 |
30 | 22.215 | 87.402 | 672 | 1.17 | % | 0.20 | % | 0.60 | % | 12.91 | % | 13.36 | % | ||||||||||||||||||||||
2020 |
33 | 19.637 | 77.411 | 639 | 1.22 | % | 0.20 | % | 0.60 | % | 15.60 | % | 16.06 | % | ||||||||||||||||||||||
2019 |
34 | 16.952 | 66.963 | 577 | 1.70 | % | 0.20 | % | 0.60 | % | 26.26 | % | 26.76 | % | ||||||||||||||||||||||
2018 |
43 | 13.400 | 53.035 | 582 | 1.87 | % | 0.20 | % | 0.60 | % | (15.45 | )% | (15.11 | )% | ||||||||||||||||||||||
Janus Henderson Research Portfolio I-S |
|
|||||||||||||||||||||||||||||||||||
2022 |
29 | 42.518 | 79.675 | 1,249 | 0.15 | % | 0.20 | % | 0.60 | % | (30.31 | )% | (30.03 | )% | ||||||||||||||||||||||
2021 |
29 | 60.887 | 114.325 | 1,765 | 0.10 | % | 0.20 | % | 0.60 | % | 19.62 | % | 20.09 | % | ||||||||||||||||||||||
2020 |
32 | 50.802 | 95.577 | 1,588 | 0.39 | % | 0.20 | % | 0.60 | % | 32.16 | % | 32.69 | % | ||||||||||||||||||||||
2019 |
34 | 38.363 | 72.319 | 1,311 | 0.47 | % | 0.20 | % | 0.60 | % | 34.71 | % | 35.25 | % | ||||||||||||||||||||||
2018 |
37 | 28.421 | 53.684 | 1,056 | 0.59 | % | 0.20 | % | 0.60 | % | (3.16 | )% | (2.77 | )% | ||||||||||||||||||||||
PIMCO Variable Insurance Trust |
|
|||||||||||||||||||||||||||||||||||
PIMCO PVIT International Bond (U.S. Dollar-Hedged) - Admin |
|
|||||||||||||||||||||||||||||||||||
2022 |
3 | 21.952 | 21.952 | 68 | 1.47 | % | 0.90 | % | 0.90 | % | (10.95 | )% | (10.95 | )% | ||||||||||||||||||||||
2021 |
3 | 24.653 | 24.653 | 79 | 1.58 | % | 0.90 | % | 0.90 | % | (2.83 | )% | (2.83 | )% | ||||||||||||||||||||||
2020 |
3 | 25.371 | 25.371 | 80 | 5.83 | % | 0.90 | % | 0.90 | % | 4.62 | % | 4.62 | % | ||||||||||||||||||||||
2019 |
3 | 24.252 | 24.252 | 78 | 1.79 | % | 0.90 | % | 0.90 | % | 6.05 | % | 6.05 | % | ||||||||||||||||||||||
2018 |
3 | 22.868 | 22.868 | 73 | 1.33 | % | 0.90 | % | 0.90 | % | 1.21 | % | 1.21 | % | ||||||||||||||||||||||
PIMCO PVIT Low Duration Portfolio - Admin |
|
|||||||||||||||||||||||||||||||||||
2022 |
3 | 15.930 | 15.930 | 47 | 1.65 | % | 0.90 | % | 0.90 | % | (6.58 | )% | (6.58 | )% | ||||||||||||||||||||||
2021 |
3 | 17.052 | 17.052 | 54 | 0.55 | % | 0.90 | % | 0.90 | % | (1.81 | )% | (1.81 | )% | ||||||||||||||||||||||
2020 |
3 | 17.366 | 17.366 | 47 | 1.21 | % | 0.90 | % | 0.90 | % | 2.07 | % | 2.07 | % | ||||||||||||||||||||||
2019 |
3 | 17.014 | 17.014 | 50 | 2.78 | % | 0.90 | % | 0.90 | % | 3.10 | % | 3.10 | % | ||||||||||||||||||||||
2018 |
3 | 16.502 | 16.502 | 47 | 1.95 | % | 0.90 | % | 0.90 | % | (0.56 | )% | (0.56 | )% |
59
ZALICO VARIABLE SEPARATE ACCOUNT
OF ZURICH AMERICAN LIFE INSURANCE COMPANY
Notes to Financial Statements
Notes:
(1) | Net Assets equals Policy Owners Equity. N/A is noted if the subaccount ceased as an investment option. |
(2) | This ratio represents dividends, excluding distribution of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by the average net assets. This ratio excludes the expense charges that result in direct reduction in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends in the underlying fund in which the subaccounts invest. N/A is noted if the fund did not pay any dividends or subaccount ceased as an investment option. |
(3) | This ratio represents the annualized policy expenses of the Separate Account, consisting primarily of mortality and expense risk charges for each period presented. The ratios include only those expenses that result in a direct reduction to unit values. Charges that require redemption of policy owner units and expenses of the underlying fund are excluded. N/A is noted if the subaccount ceased as an investment option. |
(4) | Total return is calculated using the beginning and ending unit value (before rounding for this presentation), which reflects the changes in the underlying fund values and reductions related to the Expense Ratio, for the period indicated. The total return does not include any expenses assessed through redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. N/A is noted if the subaccount ceased as an investment option. |
(a) | Subaccount closed during 2022. |
(b) | Subaccount commenced operations February 11, 2022. |
(c) | Subaccount closed during 2021. |
(d) | Subaccount commenced operations April 30, 2021. |
(e) | Effective February 11, 2022, the AST T Rowe Price Large-Cap Value Portfolio closed, and the funds transferred to the following subaccount: AST Hotchkis Wiley Large-Cap Value Portfolio, which then changed its name to AST Large-Cap Value Portfolio. |
(f) | Subaccount commenced operations June 10, 2022. |
(7) Subsequent Events
The Separate Account has evaluated the effects of events subsequent to December 31, 2022, and through April 24, 2023.
All accounting and disclosure requirements related to subsequent events are included in the financial statements.
60
Zurich American Life Insurance
Company
Statutory Financial Statements
December 31, 2022, 2021 and 2020
Zurich American Life Insurance Company
Index
December 31, 2022, 2021 and 2020
Page | ||||
Report of Independent Auditors |
1-5 | |||
Statutory Financial Statements |
||||
Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus |
6 | |||
Statutory Statements of Operations |
7 | |||
Statutory Statements of Changes in Capital and Surplus |
8 | |||
Statutory Statements of Cash Flows |
9 | |||
Notes to Statutory Financial Statements |
10-54 |
Report of Independent Auditors
Board of Directors
Zurich American Life Insurance Company
Opinion
We have audited the statutory-basis financial statements of Zurich American Life Insurance Company (the Company), which comprise the statements of admitted assets, liabilities, and capital and surplus as of December 31, 2022 and 2021, and the related statements of operations, changes in capital and surplus and cash flow for the years then ended, and the related notes to the financial statements (collectively referred to as the financial statements).
Unmodified Opinion on Statutory Basis of Accounting
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended, on the basis of accounting described in Note 2.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company at December 31, 2022 and 2021, or the results of its operations or its cash flows for the years then ended.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
1
Basis for Adverse Opinion on US. Generally Accepted Accounting Principles
As described in Note 2 to the financial statements, the Company prepared these financial statements using accounting practices prescribed or permitted by the Illinois Department of Insurance, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the financial statements of the variances between these statutory accounting practices described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material and pervasive.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the Illinois Department of Insurance. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Companys ability to continue as a going concem for one year after the date that the financial statements are issued.
Auditors Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we:
| Exercise profeccional judgment and maintain professional skepticism throughout the audit. |
| Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. |
2
| Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control. Accordingly, no such opinion is expressed. |
| Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. |
| Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Companys ability to continue as a going concern for a reasonable period of time. |
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Report of Other Auditors on December 31, 2020 Financial Statements
The statutory-basis financial statements of Zurich American Life Insurance Company for the year ended December 31, 2020, were audited by other auditors who expressed an adverse opinion with respect to conformity with U.S. generally accepted accounting principles and an unmodified opinion with respect to conformity with accounting practices prescribed or permitted by the Illinois Department of Insurance on those statements on April 23, 2021.
/s/ Ernst & Young LLP
Chicago, Illinois
April 24, 2023
3
Report of Independent Auditors
To the Board of Directors of Zurich American Life Insurance Company
We have audited the accompanying statutory financial statements of Zurich American Life Insurance Company, which comprise the statutory statements of admitted assets, liabilities and capital and surplus as of December 31, 2020 and December 31, 2019, and the related statutory statements of operations and changes in capital and surplus, and of cash flows for each of the three years in the period ended December 31, 2020.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the Illinois Department of Insurance. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Companys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 2 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the Illinois Department of Insurance, which is a basis of accounting other than accounting principles generally accepted in the United States of America.
The effects on the financial statements of the variances between the statutory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.
PricewaterhouseCoopers LLP, One North Wacker, Chicago, IL 60606
T: (312) 298 2000, F: (312) 298 2001, www.pwc.com/us
4
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2020 and December 31, 2019, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2020.
Opinion on Statutory Basis of Accounting
In our opinion, the financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities and surplus of the Company as of December 31, 2020, and December 31, 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in accordance with the accounting practices prescribed or permitted by the Illinois Department of Insurance described in Note 2.
Emphasis of Matter
As discussed in Note 6 to the financial statements, the Company has entered into significant transactions with its parent company Zurich Insurance Group Ltd and its affiliates, which are related parties. Our opinion is not modified with respect to this matter.
Other Matter
Our audit was conducted for the purpose of forming an opinion on the statutory-basis financial statements taken as a whole. The supplemental schedule of assets and liabilities, summary investment schedule, schedule of investment risk interrogatories and schedule of reinsurance disclosures (collectively, the supplemental schedules) of the Company as of December 31, 2020 and for the year then ended are presented to comply with the National Association of Insurance Commissioners Annual Statement
Instructions and Accounting Practices and Procedures Manual and for purposes of additional analysis and are not a required part of the statutory-basis financial statements. The supplemental schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the statutory-basis financial statements. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the statutory-basis financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the statutory-basis financial statements or to the statutory-basis financial statements themselves and other additional procedures, in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental schedules are fairly stated, in all material respects, in relation to the statutory-basis financial statements taken as a whole.
Chicago, Illinois
April 23, 2021
5
Zurich American Life Insurance Company
Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus
December 31, 2022 and 2021
(in thousands of dollars) | 2022 | 2021 | ||||||
Admitted assets |
||||||||
Cash and invested assets: |
||||||||
Fixed maturities, at amortized cost (fair value of $857,315 and $1,018,472, respectively) |
$ | 912,911 | $ | 978,169 | ||||
Investment in subsidiary |
22,145 | 20,267 | ||||||
Contract loans |
176,496 | 176,642 | ||||||
Cash, cash equivalents and short-term investments |
83,377 | 65,638 | ||||||
Receivables for securities |
1,394 | 2 | ||||||
|
|
|
|
|||||
Total cash and invested assets |
1,196,323 | 1,240,718 | ||||||
Federal income tax receivable |
15,922 | 27,450 | ||||||
Other amounts receivable under reinsurance contracts |
29,836 | 39,996 | ||||||
Deferred and uncollected premiums |
20,526 | 21,477 | ||||||
Investment income due and accrued |
20,212 | 14,671 | ||||||
Guaranty funds receivable or on deposit |
36 | 36 | ||||||
Receivable from separate accounts |
49,068 | 32,654 | ||||||
Receivables from parent, subsidiaries and affiliates |
483 | 347 | ||||||
Net deferred income tax asset |
1,535 | 1,055 | ||||||
Other assets |
(385 | ) | 339 | |||||
Separate account assets |
15,695,452 | 15,521,673 | ||||||
|
|
|
|
|||||
Total admitted assets |
$ | 17,029,008 | $ | 16,900,416 | ||||
|
|
|
|
|||||
Liabilities and capital and surplus Liabilities: |
||||||||
Life and annuity reserves |
$ | 606,107 | $ | 616,253 | ||||
Supplemental contracts without life contingencies |
4,230 | 4,538 | ||||||
Claims and benefits payable to policyholders |
82,316 | 77,842 | ||||||
|
|
|
|
|||||
Total policy liabilities |
692,653 | 698,633 | ||||||
Provision for experience rating refunds |
390,075 | 387,362 | ||||||
Other amounts payable on reinsurance |
63,265 | 68,551 | ||||||
Interest maintenance reserve |
| 12,717 | ||||||
General expenses due or accrued |
3,497 | 6,546 | ||||||
Transfers to separate accounts due or accrued |
(13 | ) | (18 | ) | ||||
Taxes, licenses and fees due or accrued |
9,584 | 7,050 | ||||||
Asset valuation reserve |
3,324 | 3,354 | ||||||
Payable to affiliates |
6,572 | 10,510 | ||||||
Funds held under coinsurance |
2,088 | 3,073 | ||||||
Commission to agents due or accrued |
1,152 | 1,476 | ||||||
Other liabilities |
12,900 | 15,935 | ||||||
Separate account liabilities |
15,695,452 | 15,521,673 | ||||||
|
|
|
|
|||||
Total liabilities |
16,880,549 | 16,736,862 | ||||||
|
|
|
|
|||||
Capital and surplus: |
||||||||
Capital stock ($10 par value 300,000 authorized shares; 250,000 shares issued and outstanding) |
2,500 | 2,500 | ||||||
Paid-in and contributed surplus |
956,970 | 956,970 | ||||||
Unassigned deficit |
(811,011 | ) | (795,916 | ) | ||||
|
|
|
|
|||||
Total capital and surplus |
148,459 | 163,554 | ||||||
|
|
|
|
|||||
Total liabilities and capital and surplus |
$ | 17,029,008 | $ | 16,900,416 | ||||
|
|
|
|
The accompanying notes are an integral part of these statutory financial statements.
6
Zurich American Life Insurance Company
Statutory Statements of Operations
Years Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Income and loss: |
||||||||||||
Premium and annuity considerations |
$ | 929,619 | $ | 862,797 | $ | 614,100 | ||||||
Considerations for supplemental contracts with life contingencies |
11,177 | 13,220 | 11,454 | |||||||||
Net investment income |
29,710 | 25,190 | 30,431 | |||||||||
Amortization of interest maintenance reserve |
188 | 3,247 | 2,102 | |||||||||
Separate account fees |
447,246 | 405,915 | 499,783 | |||||||||
Separate account losses |
(322 | ) | (557 | ) | (474 | ) | ||||||
Commissions and expense allowances on reinsurance ceded |
31,115 | 47,564 | 46,693 | |||||||||
Fee income from non-variable separate account funds |
3,781 | 3,330 | 1,596 | |||||||||
Other (loss) income |
(844 | ) | 1,296 | (314 | ) | |||||||
Gain on sale Corporate Life and Pension (see footnote 1) |
| | 22,025 | |||||||||
|
|
|
|
|
|
|||||||
Total income |
1,451,670 | 1,362,002 | 1,227,396 | |||||||||
|
|
|
|
|
|
|||||||
Benefits and expenses: |
||||||||||||
Death benefits |
394,903 | 401,310 | 352,312 | |||||||||
Annuity benefits |
35,716 | 33,555 | 50,256 | |||||||||
Disability benefits |
23 | 105 | 1,239 | |||||||||
Surrender benefits |
41,324 | 31,985 | 27,174 | |||||||||
Interest and adjustments on policy or deposit-type contracts |
3,298 | 3,265 | (8,512 | ) | ||||||||
Payments on supplementary contracts with life contingencies |
18,569 | 19,570 | 19,247 | |||||||||
(Decrease) increase in aggregate reserves for life policies and contracts |
(10,146 | ) | 10,400 | 7,724 | ||||||||
Commissions |
32,535 | 47,948 | 77,606 | |||||||||
General expenses |
34,701 | 35,485 | 37,848 | |||||||||
Insurance taxes, licenses and fees |
15,643 | 14,638 | 16,763 | |||||||||
Change in loading on deferred and uncollected premiums |
65 | (91 | ) | (89 | ) | |||||||
Net transfers to separate accounts |
702,331 | 612,898 | 376,903 | |||||||||
Experience rating refunds |
88,809 | 43,477 | 164,615 | |||||||||
Reinsured fees associated with separate accounts |
31,967 | 33,552 | 31,773 | |||||||||
Variable separate account fees ceded and other |
69,471 | 92,223 | 91,403 | |||||||||
|
|
|
|
|
|
|||||||
Total benefits and expenses |
1,459,209 | 1,380,320 | 1,246,262 | |||||||||
|
|
|
|
|
|
|||||||
Net loss from operations before federal income taxes and total realized capital losses after taxes |
(7,539 | ) | (18,318 | ) | (18,866 | ) | ||||||
Federal income tax expense (benefit) |
3,418 | (17,754 | ) | 60,245 | ||||||||
|
|
|
|
|
|
|||||||
Net loss from operations before total realized capital losses after taxes |
(10,957 | ) | (564 | ) | (79,111 | ) | ||||||
|
|
|
|
|
|
|||||||
Net realized capital (losses) gains before taxes |
(23,062 | ) | 2,259 | 12,613 | ||||||||
Less: related federal income tax (benefit) expense |
(4,306 | ) | 800 | 2,776 | ||||||||
Less: realized (losses) gains transferred to the interest maintenance reserve |
(18,224 | ) | 1,788 | 9,872 | ||||||||
|
|
|
|
|
|
|||||||
Total realized capital losses after taxes |
(532 | ) | (329 | ) | (35 | ) | ||||||
|
|
|
|
|
|
|||||||
Net loss |
$ | (11,489 | ) | $ | (893 | ) | $ | (79,146 | ) | |||
|
|
|
|
|
|
The accompanying notes are an integral part of these statutory financial statements.
7
Zurich American Life Insurance Company
Statutory Statements of Changes in Capital and Surplus
Years Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | Capital Stock |
Paid-in and Contributed Surplus |
Unassigned Deficit |
Total Capital and Surplus |
||||||||||||
Balances at December 31, 2019 |
$ | 2,500 | $ | 881,970 | $ | (718,250 | ) | $ | 166,220 | |||||||
Net loss |
| | (79,146 | ) | (79,146 | ) | ||||||||||
Change in: |
||||||||||||||||
Net unrealized capital losses, net of tax |
| | 1,875 | 1,875 | ||||||||||||
Nonadmitted assets |
| | (95,277 | ) | (95,277 | ) | ||||||||||
Net deferred income tax |
| | 96,887 | 96,887 | ||||||||||||
Liability for unauthorized reinsurance |
| | (264 | ) | (264 | ) | ||||||||||
Asset valuation reserve |
| | (620 | ) | (620 | ) | ||||||||||
Paid-in capital |
| 75,000 | | 75,000 | ||||||||||||
Surplus as a result of reinsurance |
| | (162 | ) | (162 | ) | ||||||||||
Interest maintenance reserve generated by transferred coinsurance assets |
| | (208 | ) | (208 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balances at December 31, 2020 |
$ | 2,500 | $ | 956,970 | $ | (795,165 | ) | $ | 164,305 | |||||||
Net loss |
| | (893 | ) | (893 | ) | ||||||||||
Change in: |
||||||||||||||||
Net unrealized capital gains, net of tax |
| | 65 | 65 | ||||||||||||
Nonadmitted assets |
| | 12,382 | 12,382 | ||||||||||||
Net deferred income tax |
| | (11,921 | ) | (11,921 | ) | ||||||||||
Liability for unauthorized reinsurance |
| | 317 | 317 | ||||||||||||
Asset valuation reserve |
| | (295 | ) | (295 | ) | ||||||||||
Surplus as a result of reinsurance |
| | (177 | ) | (177 | ) | ||||||||||
Interest maintenance reserve generated by transferred coinsurance assets |
| | (229 | ) | (229 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balances at December 31, 2021 |
$ | 2,500 | $ | 956,970 | $ | (795,916 | ) | $ | 163,554 | |||||||
Net loss |
| | (11,489 | ) | (11,489 | ) | ||||||||||
Change in: |
||||||||||||||||
Net unrealized capital gains, net of tax |
| | 1,878 | 1,878 | ||||||||||||
Nonadmitted assets |
| | (12,561 | ) | (12,561 | ) | ||||||||||
Net deferred income tax |
| | 7,480 | 7,480 | ||||||||||||
Asset valuation reserve |
| | 30 | 30 | ||||||||||||
Interest maintenance reserve generated by transferred coinsurance assets |
| | (433 | ) | (433 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Balances at December 31, 2022 |
$ | 2,500 | $ | 956,970 | $ | (811,011 | ) | $ | 148,459 | |||||||
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these statutory financial statements.
8
Zurich American Life Insurance Company
Statutory Statements of Cash Flows
Years Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Cash flow from operating activities: |
||||||||||||
Premiums collected, net of reinsurance |
$ | 943,730 | $ | 802,275 | $ | 739,403 | ||||||
Net investment income |
25,348 | 25,534 | 28,533 | |||||||||
Miscellaneous income |
480,976 | 457,548 | 569,308 | |||||||||
Benefits and loss related payments |
(488,833 | ) | (474,105 | ) | (449,564 | ) | ||||||
Net transfers to separate accounts |
(702,325 | ) | (612,726 | ) | (376,570 | ) | ||||||
Commissions, expenses paid and aggregate write-ins for deductions |
(269,018 | ) | (275,158 | ) | (407,779 | ) | ||||||
Federal and foreign income taxes recovered (paid) |
12,415 | (1,574 | ) | (69,293 | ) | |||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) operations |
2,293 | (78,206 | ) | 34,038 | ||||||||
|
|
|
|
|
|
|||||||
Cash flow from investing activities: |
||||||||||||
Proceeds from investments sold, matured or repaid |
||||||||||||
Fixed maturities |
825,829 | 377,319 | 521,628 | |||||||||
Net gains on cash, cash equivalents and short-term investments |
4 | 1 | 114 | |||||||||
Miscellaneous proceeds |
| 677 | | |||||||||
|
|
|
|
|
|
|||||||
Total investment proceeds |
825,833 | 377,997 | 521,742 | |||||||||
|
|
|
|
|
|
|||||||
Cost of investments acquired |
||||||||||||
Fixed maturities |
784,132 | 346,645 | 595,802 | |||||||||
Miscellaneous applications |
1,392 | 10,504 | 22,372 | |||||||||
|
|
|
|
|
|
|||||||
Total investments acquired |
785,524 | 357,149 | 618,174 | |||||||||
|
|
|
|
|
|
|||||||
Net (decrease) increase in contract loans |
(146 | ) | (6,451 | ) | 1,291 | |||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) investments |
40,455 | 27,299 | (97,723 | ) | ||||||||
|
|
|
|
|
|
|||||||
Cash flow from financing activities: |
||||||||||||
Capital contributions |
| | 75,000 | |||||||||
Net deposits on deposit-type funds and other liabilities |
(309 | ) | (114 | ) | (11,832 | ) | ||||||
Other cash (applied) provided |
(24,700 | ) | 10,520 | 3,341 | ||||||||
|
|
|
|
|
|
|||||||
Net cash (used in) provided by financing and miscellaneous sources |
(25,009 | ) | 10,406 | 66,509 | ||||||||
|
|
|
|
|
|
|||||||
Net change in cash, cash equivalents and short-term investments |
17,739 | (40,501 | ) | 2,824 | ||||||||
Cash, cash equivalents and short-term investments: |
||||||||||||
Beginning of year |
65,638 | 106,139 | 103,315 | |||||||||
|
|
|
|
|
|
|||||||
End of year |
$ | 83,377 | $ | 65,638 | $ | 106,139 | ||||||
|
|
|
|
|
|
The accompanying notes are an integral part of these statutory financial statements.
9
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
1. The Company and Nature of Operations
Organization and Description of Business
Zurich American Life Insurance Company (ZALICO or the Company) is a stock life insurance company founded in 1947. The Company is incorporated under the insurance laws of the state of Illinois and is licensed in the District of Columbia and all states, except New York.
The Company is a wholly owned subsidiary of Zurich Holding Company of America, Inc. (ZHCA), a Delaware Corporation, which in turn is a wholly owned indirect subsidiary of its ultimate parent company Zurich Insurance Group Ltd. (ZIG), of Zurich, Switzerland.
Prior to June 20, 2022, ZALICO was a wholly owned subsidiary of Zurich American Company, LLC (ZAC). On June 20, 2022, ZAC merged into ZHCA, with ZHCA as the surviving entity. This merger had no impact on ZALICO or its operations.
Effective September 3, 2003, ZALICO transferred certain of its business, as well as the capital stock of its wholly owned subsidiaries, to a former affiliate, Federal Kemper Life Assurance Company (FKLA). In a contemporaneous transaction, FKLA and ZALICO entered into a coinsurance agreement under which FKLA administers the business and the records of, and 100% reinsures, certain lines of business issued by ZALICO, including certain registered variable annuity contracts that are funded through the Companys Separate Account. These transfers were part of a larger transaction under which the capital stock of FKLA was sold to Bank One Insurance Holdings, Inc. (Bank One). On July 1, 2004, Bank One merged into JP Morgan Chase & Co., and FKLA changed its name to Chase Insurance Life and Annuity Company (Chase Insurance).
On July 3, 2006, Protective Life Insurance Company of Birmingham, Alabama (Protective Life), purchased Chase Insurance. Effective April 1, 2007, Chase Insurance merged with and into Protective Life.
In addition to the above transactions, the Company has entered into various affiliated and unaffiliated reinsurance agreements in order to execute strategic transactions and manage various risks to control its net exposures, and limit the volatility of losses, in an effort to protect capital and surplus. These reinsurance transactions have been disclosed in various sections of the following notes to the statutory financial statements.
The Company markets a variety of life insurance products primarily through independent insurance agents and brokers. The Companys products include fixed universal life, indexed universal life and level term. The Company also offers a series of private placement products including variable annuity, individual variable universal life and variable life. In December 2022, the Company announced it will discontinue new sales of certain indexed universal life and term life products effective February 1, 2023. See Discontinued Operations below for additional information.
Additionally, the Company marketed group term life products, accidental death & dismemberment, group long term disability and short-term disability insurance. These products were primarily sold through the Corporate Life and Pension (CLP) business, which was sold to American Family Life Insurance Company of Columbus (Aflac) in 2020. See Discontinued Operations below for additional information.
The Company had also previously marketed registered individual and group variable, fixed and market value adjusted deferred annuity products (DESTINATIONS Products), as well as non-registered group variable universal life (PPVUL) and business owned life insurance (BOLI).
10
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Non-Registered Group Life Insurance
The Company marketed PPVUL and BOLI from 1997 to 2003. PPVUL and BOLI are a form of group life insurance, which enables clients to buy variable life insurance on key employees. The policies remain in force until the last insured dies or the policy is surrendered or exchanged. The policyholder has flexibility regarding premiums and the right to allocate premiums to various divisions with differing investment objectives. The policyholders may also borrow from the investment value of the policies, surrender the policies for their cash surrender values or, in some cases, make partial withdrawals from the cash surrender values. Death benefits on the life of any insured are at least equal to the face amount on the individual insured provided the cash value relating to the insured is greater than zero.
The Company records as fees cost of insurance charges taken from the separate accounts, which is recorded as separate account fees. Cost of insurance charges ceded to reinsurers are recorded as a reduction of premiums. The BOLI policies are experience rated contracts with profitability based in part on the policyholders mortality experience. Separate account fees collected which are expected to be returned to policyholders due to favorable mortality experience are recorded as a liability in the provision for experience rating refunds. Cost of insurance charges collected in excess of amounts needed to pay death benefits, and to establish mortality reserves, are returned to the policyholder as an experience rating refund expense.
Zurich Insurance Company Ltd. (ZIC) offers a stable value protection (SVP) option in conjunction with the BOLI policies. The SVP option allows purchasers of the option to make investments into SVP divisions of the Companys separate accounts. These SVP divisions purchase value protection from a stable value provider which offers smooth or stabilized investment returns over a specified period of time. ZIC provides net amount at risk protection to the Company.
Separate Accounts
The Company maintains separate account assets and liabilities, which are reported at fair value. Separate Accounts reflect two categories of risk assumption: non-guaranteed separate accounts, wherein the contract holder assumes the investment risk, and guaranteed separate accounts, wherein the Company contractually guarantees either a minimum return or account value to the contract holder. Non-guaranteed separate account assets are segregated from other investments. Investment income and gains and losses are credited to or charged against the non-guaranteed accounts without regard to other income, gains or losses of the Company. Mortality, policy administration and surrender charges to all accounts are included in the revenues of the Company. Changes in liabilities for minimum guarantees are included in the life and annuity reserves line item in the financial statements.
BFP Securities LLC
BFP Securities LLC (BFPS) and Investment Distributors, Inc. (IDI), affiliates of Protective Life, are the principal underwriters for ZALICOs variable separate accounts. BFPS is also the primary wholesaling distributor of ZALICOs BOLI and mortality-based funding products. BFPS is a wholly owned subsidiary of Benefit Finance Partners, LLC (BFP). BFP is 50% owned by Bancorp Services, L.L.C. (Bancorp), an unaffiliated party, and 50% owned by Zurich Benefit Finance LLC (ZBF), an affiliate of ZALICO.
Discontinued Operations
In December 2022, the Company announced it will discontinue new sales of certain indexed universal life and term life products effective February 1, 2023. The Company is currently anticipating it will run-off the existing book of business over time and does not anticipate any significant impact related to this decision on its future financial results. The Company did incur severance expense of $1.3 million, which was recorded as a component of general expenses in the accompanying statements of operations, as of December 31, 2022.
11
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
On March 19, 2020, an agreement was executed between ZALICO and the Companys wholly owned subsidiary, Zurich American Life Insurance Company of New York (ZALICONY) (ZALICO and ZALICONY, collectively the Companies), ZHCA, ZIC, Aflac and American Family Life Assurance of New York (Aflac NY) to sell the Companies CLP business. The transaction closed on November 2, 2020. Part of the transaction required the recapture of CLP net liabilities previously ceded to ZIC as of the closing date, and, subsequently, the Companies ceded 100% of the in-force net CLP liabilities to Aflac and Aflac NY through reinsurance agreements dated as of November 2, 2020.
In addition, the Companies and Aflac entered into an agreement with Benefit Harbor LP to transfer the assets and employees of Benefit Harbor Insurance Services, LLC, the third-party administrator for the Companies CLP business. The Companies, Aflac and Aflac NY also entered into Administrative Services Agreements where the Companies will front CLP business directly written by the Companies to Aflac and Aflac NY in exchange for a fronting fee to be determined as a percentage of premiums written and fees collected until Aflac and Aflac NY obtain the proper licensing to write the business directly. Effective January 1, 2023, the Company is no longer fronting for Aflac.
ZALICO recorded a pre-tax gain of $22.0 million in 2020 related to the discontinued operations sold to Aflac, equal to the fair value of consideration received less the costs to sell.
2. Summary of Significant Accounting Policies
Basis of Presentation
The financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Illinois Department of Financial and Professional Regulation (Illinois Department of Insurance).
The Illinois Department of Insurance recognizes only Statements of Statutory Accounting Principles (SSAP or statutory basis of accounting) prescribed or permitted by the State of Illinois for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under the Illinois Insurance Law. The National Association of Insurance Commissioners (NAIC) Accounting Practices and Procedures Manual version effective January 1, 2001 (the Manual) has been adopted as a component of prescribed or permitted practices by the State of Illinois.
The statutory basis of accounting differs from accounting principles generally accepted in the United States of America (US GAAP) in certain respects, which in some cases may be material. The most significant of these differences are as follows:
| Cash and cash equivalents consist of cash on hand, deposits in banks and other investments, with an original maturity of 90 days or less. Cash and cash equivalents are carried at cost, which approximates fair value as required by the NAIC. Investments in money market mutual funds are carried at fair value or net asset value (NAV). Under US GAAP, cash and cash equivalents are carried at fair value and have a maturity of 12 months or less; |
| Fixed maturities are carried at cost, adjusted for amortization of premium or discount. Fixed maturities with NAIC designations of 6 are reported at the lower of amortized cost or fair value. All other fixed maturities are reflected at amortized cost. Discount or premium on fixed maturities is amortized using the interest method on a prospective basis. A yield to worst amortization method is used to take into consideration any fixed maturity call or sinking fund feature. Under US GAAP, fixed maturities are reported at fair value or amortized cost based upon managements intent as to whether fixed maturities are available for sale or will be held until maturity. Differences between cost and admitted asset investment carrying amounts are credited and charged directly to unassigned surplus rather than to a separate component of stockholders equity and other comprehensive income; |
12
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
| Included within the fixed maturities, loan-backed securities are amortized using the interest method including anticipated prepayments at the date of purchase. Prepayment assumptions for single class and multi-class mortgage-backed/asset-backed securities were obtained from the respective asset managers and the prepayment windows and/or cash flows were obtained from Bloomberg. Loan-backed securities with evidence of deterioration of credit quality for which it is probable that the Company will be unable to collect all contractually required payments receivable are written down to the present value of expected cash flows to be received. Under US GAAP, fixed maturities are reported at fair value or amortized cost based upon managements intent as to whether fixed maturities are available for sale or will be held until maturity; |
| Investments in United States (US) insurance company common stocks are not consolidated as required by US GAAP, and are carried at the underlying audited statutory equity of the insurance company, with equity in earnings being recorded directly to unassigned surplus as net unrealized gains or losses rather than recorded through the statements of operations; |
| The asset valuation reserve (AVR) is determined by NAIC prescribed formulas, which establish a provision for the risk of asset defaults and is reported as a liability with changes recorded directly to unassigned surplus. Under US GAAP, no such liability is established; |
| An interest maintenance reserve (IMR) is required under SSAP in order to defer certain realized investment gains and losses, net of tax, related to interest rate fluctuations, and to amortize such gains and losses through operating income over the remaining life of the securities sold. Any net unamortized deferred losses are nonadmitted and charged directly to unassigned surplus. No such reserve is required by US GAAP; |
| Life and annuity reserves under statutory accounting practices are based on statutory mortality, morbidity and interest requirements without consideration of withdrawals and Company experience. Under the statutory basis of accounting, the NAIC Reserve Valuation Method is used for the majority of individual insurance reserves; under US GAAP, individual insurance policyholder liabilities for traditional forms for insurance are generally established using the net premium method. For interest-sensitive policies, a liability for policyholder account balances is established under GAAP based on the contract value that has accrued to the benefit of the policyholder. Policy valuation assumptions used in the estimation of policyholder liabilities are generally prescribed under SSAP; under US GAAP, policy valuation assumptions are based upon best estimates as of the date the policy is issued, with provisions for the risk of adverse deviation; |
| Certain contracts, in particular deferred annuities with mortality risk, are considered life contracts under SSAP and, accordingly, premiums associated with these contracts are reported as revenues. Under US GAAP, the Companys deferred annuities are classified as either insurance contracts or investment contracts and, accordingly, for those annuities, premiums are not reported as revenues. Amounts received for investment contracts are also not reported as policy liabilities and insurance reserves under US GAAP; |
| Under SSAP, the Commissioners Annuity Reserve Valuation Method (CARVM) is used for the majority of individual deferred annuity reserves. Under US GAAP, individual deferred annuity policyholder liabilities are generally equal to the contract value that has accrued to the benefit of the policyholder, in addition to liabilities for certain guarantees under variable annuity contracts; |
| Under statutory accounting practices, costs of acquiring new business are charged to operations in the year such costs are incurred. Under US GAAP, such costs are deferred and amortized over the premium-paying period of the policies for traditional products, or as a level percentage of gross profits for interest sensitive products; |
13
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
| Under statutory accounting practices, premiums are recognized as revenues when due. For US GAAP purposes, premiums for traditional life insurance products, which include those products with fixed and guaranteed premiums and benefits and consist principally of whole and term life insurance policies, are recognized as revenues when due. Revenues for universal life insurance policies and for investment products consist of policy charges for the cost of insurance, interest earned, policy administration charges and surrender charges assessed against policyholder account balances during the year. Expenses related to these products include interest credited to policy account balances, benefit claims incurred in excess of policy account balances and commissions and expense allowances on reinsurance assumed. Revenues also include commissions and expense allowances on reinsurance ceded and reserve adjustments on reinsurance ceded. Under the statutory basis of accounting, deferred premiums, representing gross premiums less loading, are reported as an admitted asset. Under US GAAP, uncollected premiums are stated at gross amounts and deferred premiums are reflected as a reduction of the related aggregate reserve. Contracts that contain an embedded derivative are not bifurcated between components and are accounted for as part of the host contract, whereas under US GAAP, the embedded derivative would be bifurcated from the host contract and accounted for separately; |
| Assets and liabilities are reported gross of reinsurance under US GAAP and net of reinsurance under the statutory basis of accounting. Certain reinsurance transactions are accounted for as financing transactions under US GAAP and as reinsurance for SSAP. Transactions recorded as financing have no impact on premiums or losses incurred, while under the statutory basis of accounting, premiums paid to the reinsurer are recorded as ceded premiums (a reduction in revenue) and expected reimbursement for losses from the reinsurer are recorded as a reduction in losses. Reserves and reinsurance recoverables on unpaid claims on reinsured business are netted with aggregate reserves and the liability for life policy claims, respectively. Under US GAAP, these reinsured amounts are reflected as an asset; |
| Deferred income taxes are provided for temporary differences between the financial statement and tax bases of assets and liabilities at the end of each year based on enacted tax rates. Deferred income tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Net deferred tax assets are limited to their admissible amount according to a prescribed formula. Changes in deferred income tax assets and liabilities are reported as adjustments to surplus. Comprehensive income is not determined for statutory reporting purposes. Under US GAAP, most changes in deferred income taxes are included in income tax expense or benefit and are allocated to continuing operations, discontinued operations, extraordinary items and items charged directly to shareholders equity. There are no admissibility considerations under US GAAP; |
| Certain assets are considered nonadmitted assets for statutory purposes and any changes in such assets are credited or charged directly to unassigned surplus. There are no nonadmitted assets for US GAAP purposes; and |
| The statutory statement of cash flows is presented as required and differs from US GAAP presentation. The Company defines cash as cash in banks and money market accounts and considers all highly liquid investments, with maturity of one year or less when purchased, to be short-term investments. |
14
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Investments
Investments are valued as prescribed by the NAIC and as required by the Illinois Department of Insurance. All security transactions are recorded on a trade date basis.
The Companys investment in the common stock of its wholly owned insurance subsidiary is accounted and reported under the equity method as described in SSAP No. 97, Investments in Subsidiary, Controlled and Affiliated Entities, and valued in accordance with section 3(ii) (D) of the NAIC Valuations Securities manual and reported based on the audited statutory capital and surplus of the subsidiary. Changes in the carrying value of such investments are reflected as unrealized gains or losses in capital and surplus.
The Company records short-term investments at cost or amortized cost.
Contract loans are carried at the aggregate of the unpaid balance provided the unpaid balance does not exceed either cash surrender value of the policy or the policy reserves. The excess of the unpaid loan balance over the cash surrender value is nonadmitted and reflected as an unrealized capital loss.
Upon default or indication of potential default by an issuer of fixed maturity securities, other than mortgage-backed securities, the issue(s) of such issuer would be analyzed for possible write-down. Any such issue would be written down to its net realizable value (or fair value) during the year in which the impairment was determined to have become other than temporary. Thereafter, each issue is regularly reviewed, and additional write-downs may be taken in light of later developments. Write-downs are included as part of net realized capital gains and losses. All loan-backed and structured securities were reviewed to determine if there were any indications of potential for other than temporary impairment classification (OTTI). Where such an indication existed, cash flow and credit support analyses were performed. If it was determined that the Company was to receive less than 100% of contractual cash flows, the OTTI impact was measured and recorded in accordance with SSAP 43R, Loan-Backed and Structured Securities.
In determining fair market value, for the majority of securities, quotes were obtained from third party sources. If quotes from these sources were not available, a broker estimate was used.
Investment income is recorded when earned. All investment income due and accrued amounts that are over 90 days past due, are excluded from surplus. The Company had no investment income due and accrued that was over 90 days past due at December 31, 2022. The Company had $1,134 investment income due and accrued that was over 90 days past due at December 31, 2021.
Realized gains or losses on sales of investments, determined on the basis of identifiable cost on the disposition of the respective investment, which are not transferred to the IMR and write-downs are credited or charged to income or loss, net of applicable federal income tax. Unrealized gains and losses are credited or charged to surplus, net of deferred tax.
Life and Annuity Reserves
Liabilities for policy reserves on annuity contracts are calculated based on CARVM. Interest crediting rates under the contracts accumulation periods range from 0% to 7%. Guarantee periods range from one to ten years with minimum interest rate guarantees ranging from 0% to 5%.
Liabilities for life policy reserves and interest-sensitive life insurance contracts are based on statutory mortality and interest requirements without consideration of withdrawals. Liabilities for the majority of these contracts are calculated based on the 1980 Commissioners Standard Ordinary (CSO) table assuming interest rates ranging from 0% to 6%.
15
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
The Company waives deduction of deferred fractional premiums upon death of the insured and returns the portion of the final premium paid beyond the policy month of death. Surrender values promised in excess of the legally computed reserves, if any, would be included as a component of reserves.
Extra premiums are charged for policies issued on substandard lives according to underwriting classifications. Final reserves are determined by computing the mid-terminal reserve for the plan and holding an additional one half of the net valuation premium for the modal period.
Use of Estimates
The preparation of financial statements in conformity with accounting practices prescribed or permitted by the Illinois Department of Insurance requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Guaranty Fund Assessments
The Company is liable for guaranty fund assessments (GFA) related to certain unaffiliated life insurance companies that have become insolvent during the years 2022 and prior. The Companys financial statements include provisions for all known assessments that are expected to be levied against the Company as well as an estimate of amounts (net of expected future premium tax recoveries) that the Company believes will be assessed in the future. According to SSAP No. 35R, Guaranty Fund and Other Assessments, such liabilities and estimated premium tax credits, as well as the estimated GFA recoverable for the ceded portion of the future liabilities, are presented separately in the balance sheet. The majority of the GFA liability is ceded to Protective Life.
The Companys guaranty fund liability is $10,263,000 and $10,298,000 at December 31, 2022 and 2021, respectively. Amounts recoverable from reinsurers related to GFA liabilities are $9,511,000 and $9,545,000 at December 31, 2022 and 2021, respectively. The amount and period over which the GFA liabilities are expected to be paid varies by insolvency. Future premium tax recoveries total $36,000 at both December 31, 2022 and 2021. Premium tax recoveries vary by state and generally range between five to twenty years.
Separate Accounts
The assets of the separate accounts represent segregated funds administered and invested by the Company for purposes of funding variable annuity and variable life insurance contracts for the exclusive benefit of variable annuity and variable life insurance contract holders. The Company receives administrative fees from the separate accounts and retains varying amounts of withdrawal charges to cover expenses in the event of early withdrawals by contract holders.
The assets and liabilities of the separate accounts are carried at the fair value of the underlying contracts. The difference between the fair values of the contracts, and their termination value, is recorded as a negative liability for transfers to separate accounts due or accrued. Changes in termination value of the contracts are recognized through the Companys net loss from operations as a component of net transfers to (from) the separate accounts rather than directly to surplus. The assets are invested primarily in a series of mutual funds managed by other unaffiliated mutual fund managers.
16
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Reinsurance
In the ordinary course of business, the Company enters into reinsurance agreements to diversify risk and limit its overall financial exposure to certain blocks of annuities and to individual death claims and other claims. Although these reinsurance agreements contractually obligate the reinsurers to reimburse the Company, they do not discharge the Company from its primary liabilities and obligations to policyholders. An additional protection is the existence of a security trust. Several of the Companys reinsurance contracts require that the reinsurer fund a trust and/or letters of credit, with the fair value of the assets at least equal to the book value of the statutory liabilities reinsured.
Federal Income Taxes
The Company has applied SSAP No. 101, Income Taxes. Income tax incurred is recognized by applying the enacted income tax law. Deferred income taxes are provided for temporary differences between the financial statement and tax bases of assets and liabilities at the end of each year based on enacted tax rates. Changes in admitted deferred tax assets (DTA) and liabilities (DTL) are recognized as adjustments to surplus. DTAs are first subjected to a valuation allowance assessment.
Net DTAs remaining after the valuation allowance assessment are considered admitted assets based upon specific criteria, which consider the reversal pattern of DTAs and surplus. The reversal pattern and surplus limitation parameters in the admission tests are determined based on the risk-based capital levels.
The Company records interest and penalties related to income tax contingencies as a component of income tax expense.
Nonadmitted Assets
Certain assets, designated as nonadmitted assets, such as investment income due and accrued exceeding 90 days, deferred income tax in excess of permitted amounts, a negative IMR, electronic data processing equipment and software, etc., have been excluded from the statutory statements of admitted assets, liabilities and capital and surplus through a direct charge against unassigned surplus.
3. Investments
The components of investment income by type of investment for the years ended December 31, 2022, 2021 and 2020 are as follows:
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Fixed maturities |
$ | 25,385 | $ | 22,836 | $ | 26,345 | ||||||
Contract loans |
6,022 | 4,754 | 6,325 | |||||||||
Cash, cash equivalents and short-term investments |
1,169 | 39 | 427 | |||||||||
Other |
| 102 | | |||||||||
|
|
|
|
|
|
|||||||
Gross investment income |
32,576 | 27,731 | 33,097 | |||||||||
Less: Investment expenses |
(2,866 | ) | (2,541 | ) | (2,666 | ) | ||||||
|
|
|
|
|
|
|||||||
Net investment income |
$ | 29,710 | $ | 25,190 | $ | 30,431 | ||||||
|
|
|
|
|
|
17
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Investment expenses included the following fees paid to the Companys various affiliated and non-affiliated investment managers:
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Fees paid to investment managers: |
||||||||||||
Affiliated investment managers: |
||||||||||||
Zurich Investment Services Limited |
$ | 217 | $ | 228 | $ | 304 | ||||||
Zurich Global Investment Management |
1,080 | 886 | 892 | |||||||||
Farmers Group Inc. |
125 | 115 | 131 | |||||||||
Non-affiliated investment managers: |
||||||||||||
Prudential Private Placement Investors L.P. |
209 | 200 | 201 | |||||||||
DWS Investment Management Americas, Inc. |
217 | 236 | 267 | |||||||||
Pinebridge Investments LLC |
162 | 199 | 229 | |||||||||
Goldman Sachs Asset Management, L.P. |
418 | 382 | 289 | |||||||||
Custody fees |
431 | 288 | 346 | |||||||||
Other investment expenses |
7 | 7 | 7 | |||||||||
|
|
|
|
|
|
|||||||
Total investment expenses |
$ | 2,866 | $ | 2,541 | $ | 2,666 | ||||||
|
|
|
|
|
|
Realized Gains and Losses
Realized gains and losses on sales, redemptions and impairments of investments are determined based on the actual cost of the securities based on specific identification.
Realized investment gains (losses) for the years ended December 31, 2022, 2021 and 2020 are as follows:
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Fixed maturities |
$ | (23,064 | ) | $ | 2,263 | $ | 12,496 | |||||
Cash, cash equivalents, and short term |
2 | (4 | ) | 117 | ||||||||
|
|
|
|
|
|
|||||||
(23,062 | ) | 2,259 | 12,613 | |||||||||
Less: Capital gains tax (expense) benefit |
4,306 | (800 | ) | (2,776 | ) | |||||||
|
|
|
|
|
|
|||||||
(18,756 | ) | 1,459 | 9,837 | |||||||||
Less: IMR transfers net of tax |
18,224 | (1,788 | ) | (9,872 | ) | |||||||
|
|
|
|
|
|
|||||||
Total realized capital losses after taxes |
$ | (532 | ) | $ | (329 | ) | $ | (35 | ) | |||
|
|
|
|
|
|
18
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Unrealized Gains and Losses on Fixed Maturities
Amortized cost, gross unrealized gains, gross unrealized losses, and estimated fair value of fixed maturities, as of December 31, 2022 and 2021 are as follows:
(in thousands of dollars) | 2022 | |||||||||||||||
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Fair Value |
|||||||||||||
Fixed maturities |
||||||||||||||||
U.S. government |
$ | 298,843 | $ | 135 | $ | (12,537 | ) | $ | 286,441 | |||||||
Other governments |
9,854 | | (717 | ) | 9,137 | |||||||||||
Political subdivisions |
4,255 | 239 | (104 | ) | 4,390 | |||||||||||
Special revenues |
73,601 | 581 | (6,101 | ) | 68,081 | |||||||||||
Industrial and miscellaneous (unaffiliated) |
526,358 | 2,871 | (39,963 | ) | 489,266 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed maturities |
$ | 912,911 | $ | 3,826 | $ | (59,422 | ) | $ | 857,315 | |||||||
|
|
|
|
|
|
|
|
(in thousands of dollars) | 2021 | |||||||||||||||
Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Estimated Fair Value |
|||||||||||||
Fixed maturities |
||||||||||||||||
U.S. government |
$ | 358,221 | $ | 3,321 | $ | (2,954 | ) | $ | 358,588 | |||||||
Other governments |
10,933 | 101 | (101 | ) | 10,933 | |||||||||||
Political subdivisions |
4,266 | 1,210 | (5 | ) | 5,471 | |||||||||||
Special revenues |
75,805 | 5,228 | (593 | ) | 80,440 | |||||||||||
Industrial and miscellaneous (unaffiliated) |
528,944 | 35,970 | (1,874 | ) | 563,040 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed maturities |
$ | 978,169 | $ | 45,830 | $ | (5,527 | ) | $ | 1,018,472 | |||||||
|
|
|
|
|
|
|
|
19
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Unrealized Losses on Fixed Maturities
Fair value and gross unrealized losses of fixed maturities as of December 31, 2022 and 2021 for securities that were in an unrealized loss position were as follows:
(in thousands of dollars) | 2022 | |||||||||||||||
Unrealized Losses Less Than 12 Months |
Unrealized Losses Greater Than 12 Months |
|||||||||||||||
Gross Estimated Fair Value |
Gross Unrealized Losses |
Gross Estimated Fair Value |
Gross Unrealized Losses |
|||||||||||||
Fixed maturities |
||||||||||||||||
U.S. government |
$ | 191,430 | $ | (4,756 | ) | $ | 66,885 | $ | (7,693 | ) | ||||||
Other governments |
2,717 | (33 | ) | 6,420 | (684 | ) | ||||||||||
U.S. political subdivisions bonds |
379 | (60 | ) | 197 | (44 | ) | ||||||||||
U.S. special revenues bonds |
17,336 | (1,462 | ) | 1,678 | (125 | ) | ||||||||||
Industrial and miscellaneous |
232,463 | (17,415 | ) | 88,264 | (14,949 | ) | ||||||||||
Loan-backed securities |
97,717 | (5,894 | ) | 45,702 | (6,307 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed maturities |
$ | 542,042 | $ | (29,620 | ) | $ | 209,146 | $ | (29,802 | ) | ||||||
|
|
|
|
|
|
|
|
(in thousands of dollars) | 2021 | |||||||||||||||
Unrealized Losses Less Than 12 Months |
Unrealized Losses Greater Than 12 Months |
|||||||||||||||
Gross Estimated Fair Value |
Gross Unrealized Losses |
Gross Estimated Fair Value |
Gross Unrealized Losses |
|||||||||||||
Fixed maturities |
||||||||||||||||
U.S. government |
$ | 209,937 | $ | (1,342 | ) | $ | 40,695 | $ | (1,612 | ) | ||||||
Other governments |
6,244 | (101 | ) | | | |||||||||||
U.S. political subdivisions bonds |
300 | (5 | ) | | | |||||||||||
U.S. special revenues bonds |
4,372 | (21 | ) | 3,759 | (103 | ) | ||||||||||
Industrial and miscellaneous |
77,963 | (1,161 | ) | 11,463 | (450 | ) | ||||||||||
Loan-backed securities |
51,637 | (588 | ) | 9,364 | (144 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total fixed maturities |
$ | 350,453 | $ | (3,218 | ) | $ | 65,281 | $ | (2,309 | ) | ||||||
|
|
|
|
|
|
|
|
As of December 31, 2022 and 2021, fixed maturities represented 100% of the Companys total unrealized loss amount for both years and totaled 1,080 and 357 securities, respectively.
As of December 31, 2022 and 2021, fixed maturities in an unrealized loss position for less than 12 months were comprised of 714 and 303 securities, respectively.
Fixed maturities in an unrealized loss position for greater than 12 months as of December 31, 2022 and 2021 were comprised of 366 and 54 securities, respectively. The Company recognized OTTI on fixed maturities of $1,048 in 2022. The Company did not recognize OTTI on fixed maturities investments in 2021.
The majority of these securities are investment grade fixed maturities and the decline in fair value is attributed to changes in interest rates and not credit quality. As the Company has the ability and intent to hold these investments until a recovery of fair value which may be at maturity, the Company does not consider these investments to be other-than temporarily-impaired at December 31, 2022 or 2021.
20
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Loan-Backed Securities
Loan-backed securities with evidence of deterioration of credit quality, for which it is probable that the Company will be unable to collect all contractually required payments receivable, are written down to the present value of expected cash flows to be received. In determining the impairments for loan-backed securities, a review of default rate, credit support and other key assumptions is made on the security level.
Loan-backed securities impaired, as their carrying value was less than the present value of their projected cash flows that were held as of December 31, 2022, were as follows:
2022 |
||||||||||||||||||||||||
CUSIP Identification |
Book/Adjusted Carrying Value Amortized Cost Before Current Period OTTI |
Present Value of Projected Cash Flows |
Recognized Other-Than- Temporary Impairment |
Amortized Cost After OTTI |
Fair Value at Time of OTTI |
Date of Financial Statement Where Reported |
||||||||||||||||||
22540VG71 |
$ | 36,525 | $ | 35,477 | $ | 1,048 | $ | 35,477 | $ | 37,782 | 6/30/22 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
$ | 36,525 | $ | 35,477 | $ | 1,048 | $ | 35,477 | $ | 37,782 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
As of December 31, 2021, there were no impaired loan-backed securities.
Concentrations of Credit Risk
The Company is not exposed to any significant concentration of credit risk of a single or group non-governmental issuer. Concentration of credit risk could exist when changes in economic, industry or geographic factors similarly affect groups of counter-parties whose aggregate credit exposure is material in relation to the Companys total exposure.
Maturities of Fixed Maturities
The amortized cost and estimated fair value of fixed maturities, by contractual maturity, at December 31, 2022 and 2021 are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties and because mortgage-backed securities provide for periodic payments throughout their life. As the stated maturities of such securities may not be indicative of actual maturities, the totals for mortgage-backed securities are shown separately.
21
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | 2022 | 2021 | ||||||||||||||
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value |
|||||||||||||
Due in 1 year or less |
$ | 27,616 | $ | 27,188 | $ | 66,169 | $ | 66,514 | ||||||||
Due after 1 year through 5 years |
421,559 | 404,598 | 407,220 | 411,590 | ||||||||||||
Due after 5 years through 10 years |
181,390 | 163,561 | 228,161 | 233,418 | ||||||||||||
Due after 10 years |
120,620 | 112,211 | 110,611 | 138,132 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
751,185 | 707,558 | 812,161 | 849,654 | |||||||||||||
Mortgage-backed securities |
161,726 | 149,757 | 166,008 | 168,818 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 912,911 | $ | 857,315 | $ | 978,169 | $ | 1,018,472 | |||||||||
|
|
|
|
|
|
|
|
Proceeds from sold, matured or repaid fixed maturities and gross realized gains and losses for the years ended December 31, 2022, 2021 and 2020 are as follows:
(in thousands of dollars) | Gross Gains | Gross Losses | Proceeds | |||||||||
2022 |
||||||||||||
Long term fixed maturities |
$ | 858 | $ | (23,922 | ) | $ | 825,829 | |||||
Short term fixed maturities |
2 | (6 | ) | 2,554 | ||||||||
2021 |
||||||||||||
Long term fixed maturities |
$ | 4,371 | $ | (2,142 | ) | $ | 377,319 | |||||
Short term fixed maturities |
1 | | 9,292 | |||||||||
2020 |
||||||||||||
Long term fixed maturities |
$ | 12,952 | $ | (502 | ) | $ | 521,628 | |||||
Short term fixed maturities |
1 | | 12,094 |
22
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Restricted Assets
As of December 31, 2022 and 2021, the Company has the following restricted assets held at amortized cost, which were on deposit with various states to satisfy regulatory requirements:
Gross Restricted |
Percentage | |||||||||||||||||||||||||||||||||||||||||||
(in thousands of dollars) |
| |||||||||||||||||||||||||||||||||||||||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | ||||||||||||||||||||||||||||||||||
Restricted Asset Category |
Total General Account (G/A) |
G/A Supporting Protected Cell Account Activity |
Total Separate Account (S/A) Restricted Assets |
S/A Assets Supporting G/A Activity |
Total | Total From Prior Year |
Increase/ Decrease |
Total Non- Admitted Restricted |
Total Current Year Admitted Restricted |
Gross Restricted to Total Assets |
Admitted Restricted to Total Admitted Assets |
|||||||||||||||||||||||||||||||||
2022 |
||||||||||||||||||||||||||||||||||||||||||||
On deposit with states regulatory bodies |
$ | 4,365 | $ | | $ | | $ | | $ | 4,365 | $ | 3,959 | $ | 406 | $ | | $ | 4,365 | 0.03 | % | 0.03 | % | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total restricted assets |
$ | 4,365 | $ | | $ | | $ | | $ | 4,365 | $ | 3,959 | $ | 406 | $ | | $ | 4,365 | 0.03 | % | 0.03 | % | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
2021 |
||||||||||||||||||||||||||||||||||||||||||||
On deposit with states regulatory bodies |
$ | 3,959 | $ | | $ | | $ | | $ | 3,959 | $ | 3,973 | $ | (14 | ) | $ | | $ | 3,959 | 0.02 | % | 0.02 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total restricted assets |
$ | 3,959 | $ | | $ | | $ | | $ | 3,959 | $ | 3,973 | $ | (14 | ) | $ | | $ | 3,959 | 0.02 | % | 0.02 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The fair value of these securities was $4,098,257 and $3,950,987 as of December 31, 2022 and 2021, respectively.
23
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
4. Fair Value of Financial Instruments
The Companys financial assets and liabilities carried at fair value have been classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100R, Fair Value. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An assets or liabilitys classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:
Level 1 | Securities valued based on directly observable market prices and are traded in active markets; securities valued on unadjusted quoted prices, if not actively traded. Level 1 securities include money market funds and exchange traded equity and derivative securities. |
Level 2 | Quoted prices in markets that are not active or significant inputs that are observable either directly or indirectly. Level 2 inputs include the following: |
a. | Quoted prices for similar assets or liabilities in active markets; |
b. | Quoted prices for identical or similar assets or liabilities in nonactive markets; |
c. | Inputs other than quoted market prices that are observable; and |
d. | Inputs that are derived principally from or corroborated by observable market data through correlation or other means. |
Level 3 | Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These measurements include circumstances in which there is little, if any, market activity for the asset or liability and reflect managements own judgments about the assumptions a market participant would use in pricing the asset or liability. |
At the end of each reporting period, the Company evaluates whether or not an event has occurred that would transfer any of these securities between Level 1 and Level 2. This policy also applies to transfers in and out of Level 3.
24
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Fair Values of Financial Instruments and its Levels within Fair Value Hierarchy
The following table provides information as of December 31, 2022 and 2021 about the fair values and certain admitted values of the Companys financial instruments and its levels within the fair value hierarchy:
(in thousands of dollars) | 2022 | |||||||||||||||||||||||
Type of Financial Instrument | Aggregate Fair Value |
Admitted Assets |
Level 1 | Level 2 | Level 3 | Not Practicable (Carrying Value) |
||||||||||||||||||
Assets |
||||||||||||||||||||||||
Fixed maturities |
$ | 857,315 | $ | 912,911 | $ | | $ | 853,513 | $ | 3,802 | $ | | ||||||||||||
Cash, cash equivalents and short-term investments |
83,377 | 83,377 | 64,866 | 18,511 | | | ||||||||||||||||||
Receivable for securities |
1,394 | 1,394 | 1,394 | | | | ||||||||||||||||||
Contract loans |
176,496 | 176,496 | | | | 176,496 | ||||||||||||||||||
Investment income due and accrued |
20,212 | 20,212 | 20,212 | | | | ||||||||||||||||||
Separate account assets |
15,695,452 | 15,695,452 | 2,178,197 | 11,943,898 | 1,573,357 | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total assets |
$ | 16,834,246 | $ | 16,889,842 | $ | 2,264,669 | $ | 12,815,922 | $ | 1,577,159 | $ | 176,496 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Liabilities |
||||||||||||||||||||||||
Deposit type contracts |
$ | 4,230 | $ | 4,230 | $ | | $ | 4,230 | $ | | $ | | ||||||||||||
Separate account liabilities |
15,695,452 | 15,695,452 | | 15,695,452 | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities |
$ | 15,699,682 | $ | 15,699,682 | $ | | $ | 15,699,682 | $ | | $ | | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands of dollars) | 2021 | |||||||||||||||||||||||
Type of Financial Instrument | Aggregate Fair Value |
Admitted Assets |
Level 1 | Level 2 | Level 3 | Not Practicable (Carrying Value) |
||||||||||||||||||
Assets |
||||||||||||||||||||||||
Fixed maturities |
$ | 1,018,472 | $ | 978,169 | $ | | $ | 1,015,913 | $ | 2,559 | $ | | ||||||||||||
Cash, cash equivalents and short-term investments |
65,638 | 65,638 | 65,638 | | | | ||||||||||||||||||
Receivable for securities |
2 | 2 | 2 | | | | ||||||||||||||||||
Contract loans |
176,642 | 176,642 | | | | 176,642 | ||||||||||||||||||
Investment income due and accrued |
14,671 | 14,671 | 14,671 | | | | ||||||||||||||||||
Separate account assets |
15,521,673 | 15,521,673 | 2,662,302 | 11,516,480 | 1,342,891 | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total assets |
$ | 16,797,098 | $ | 16,756,795 | $ | 2,742,613 | $ | 12,532,393 | $ | 1,345,450 | $ | 176,642 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Liabilities |
||||||||||||||||||||||||
Deposit type contracts |
$ | 4,538 | $ | 4,538 | $ | | $ | 4,538 | $ | | $ | | ||||||||||||
Separate account liabilities |
15,521,673 | 15,521,673 | | 15,521,673 | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total liabilities |
$ | 15,526,211 | $ | 15,526,211 | $ | | $ | 15,526,211 | $ | | $ | | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
25
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Changes in Level 3 Assets Measured at Fair Value
The following table summarizes the changes in Separate Account assets classified as Level 3 for the years ended December 31, 2022 and 2021. Gains and losses reported in this table may include changes in fair value that are attributable to both observable and unobservable inputs.
(in thousands of dollars) | Separate Account Assets | |||||||||||||||||||||||||||
Beginning Fair Value |
Total Gains/ (Losses) Included in Net Income |
Total Gains/ (Losses) Included in Surplus |
Purchases | Sales | Transfer in/(out) of Level 3 |
Ending Fair Value |
||||||||||||||||||||||
2022 | $ | 1,342,891 | $ | (66,195 | ) | $ | 12,578 | $ | 340,132 | $ | (56,049 | ) | $ | | $ | 1,573,357 | ||||||||||||
2021 | $ | 1,030,100 | $ | 113,497 | $ | 6,797 | $ | 243,146 | $ | (50,649 | ) | $ | | $ | 1,342,891 |
Methods and Assumptions to Estimate Fair Value of Financial Instruments
The following methods and assumptions were used to estimate the fair value of financial instruments as of December 31, 2022 and 2021:
| Fixed maturities - The estimated fair value of fixed maturities is valued in accordance with the NAICs Purposes and Procedures Manual of the Securities Valuation Office (SVO). Fair value is based upon quoted market prices, dealer quotes, and prices obtained from independent pricing services, generally broker dealers. Unless representative trades of securities actually occurred at year end, these quotes are generally estimates of fair value based on an evaluation of appropriate factors such as trading in similar securities, yields, credit quality, coupon rate, maturity, type of issues and other market data. |
| Cash, cash equivalents and short-term investments - The carrying amounts of these items approximate fair value. |
| Contract loans - The carrying amounts of these items approximate fair market values because interest rates are generally variable and based on current market rates. |
| Deposit-type contracts - The estimated fair value is currently equal to book value and is based on the present value of the future payments. |
| The separate account assets are carried at fair value based on the reported NAV per share of the respective portfolios at December 31, 2022 and 2021. Accumulation values are computed daily based on the change in fair market value of the NAV of the subaccount less mortality and expense risk charges for the subaccount. The carrying amounts of the separate account liabilities are a reasonable estimate of their fair value. |
26
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
5. Income Taxes
Components of DTAs and DTLs at December 31, 2022 and 2021, as well as the related changes, comprise the following components:
(in thousands of dollars) | 2022 | |||||||||||
Ordinary | Capital | Total | ||||||||||
Gross deferred tax assets |
$ | 168,845 | $ | 1,677 | $ | 170,522 | ||||||
Deferred tax assets nonadmitted |
161,907 | 141 | 162,048 | |||||||||
|
|
|
|
|
|
|||||||
Subtotal net admitted deferred tax asset |
6,938 | 1,536 | 8,474 | |||||||||
Deferred tax liabilities |
6,938 | 1 | 6,939 | |||||||||
|
|
|
|
|
|
|||||||
Net admitted deferred tax asset |
$ | | $ | 1,535 | $ | 1,535 | ||||||
|
|
|
|
|
|
(in thousands of dollars) | 2021 | |||||||||||
Ordinary | Capital | Total | ||||||||||
Gross deferred tax assets |
$ | 161,764 | $ | 1,160 | $ | 162,924 | ||||||
Deferred tax assets nonadmitted |
154,943 | 105 | 155,048 | |||||||||
|
|
|
|
|
|
|||||||
Subtotal net admitted deferred tax asset |
6,821 | 1,055 | 7,876 | |||||||||
Deferred tax liabilities |
6,821 | | 6,821 | |||||||||
|
|
|
|
|
|
|||||||
Net admitted deferred tax asset |
$ | | $ | 1,055 | $ | 1,055 | ||||||
|
|
|
|
|
|
(in thousands of dollars) | Change | |||||||||||
Ordinary | Capital | Total | ||||||||||
Gross deferred tax assets |
$ | 7,081 | $ | 517 | $ | 7,598 | ||||||
Deferred tax assets nonadmitted |
6,964 | 36 | 7,000 | |||||||||
|
|
|
|
|
|
|||||||
Subtotal net admitted deferred tax asset |
117 | 481 | 598 | |||||||||
Deferred tax liabilities |
117 | 1 | 118 | |||||||||
|
|
|
|
|
|
|||||||
Net admitted deferred tax asset |
$ | | $ | 480 | $ | 480 | ||||||
|
|
|
|
|
|
27
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
The SSAP No. 101 admission calculation components at December 31, 2022 and 2021 are as follows:
(in thousands of dollars) | 2022 | |||||||||||
Ordinary | Capital | Total | ||||||||||
(a) Federal income taxes paid in prior years recoverable through loss carrybacks |
$ | | $ | 1,535 | $ | 1,535 | ||||||
(b) Adjusted gross deferred tax assets expected to be realized after application of the threshold limitation |
| | | |||||||||
(b.i) Adjusted gross deferred tax assets expected to be realized following the balance sheet date |
| | | |||||||||
(b.ii) Adjusted gross deferred tax assets allowed per limitation threshold |
N/A | N/A | 22,537 | |||||||||
(c) Adjusted gross deferred tax assets offset by gross deferred tax liabilities |
6,938 | 1 | 6,939 | |||||||||
|
|
|
|
|
|
|||||||
(d) Deferred tax assets admitted as the result of application of SSAP No. 101 |
$ | 6,938 | $ | 1,536 | $ | 8,474 | ||||||
|
|
|
|
|
|
|||||||
Ratio percentage used to determine recovery period and threshold limitation amount |
748 | % | ||||||||||
Amount of adjusted capital and surplus used to determine recovery period and threshold limitation |
$ | 150,248 |
(in thousands of dollars) | 2021 | |||||||||||
Ordinary | Capital | Total | ||||||||||
(a) Federal income taxes paid in prior years recoverable through loss carrybacks |
$ | | $ | 1,055 | $ | 1,055 | ||||||
(b) Adjusted gross deferred tax assets expected to be realized after application of the threshold limitation |
| | | |||||||||
(b.i) Adjusted gross deferred tax assets expected to be realized following the balance sheet date |
| | | |||||||||
(b.ii) Adjusted gross deferred tax assets allowed per limitation threshold |
N/A | N/A | 24,878 | |||||||||
(c) Adjusted gross deferred tax assets offset by gross deferred tax liabilities |
6,821 | | 6,821 | |||||||||
|
|
|
|
|
|
|||||||
(d) Deferred tax assets admitted as the result of application of SSAP No. 101 |
$ | 6,821 | $ | 1,055 | $ | 7,876 | ||||||
|
|
|
|
|
|
|||||||
Ratio percentage used to determine recovery period and threshold limitation amount |
836 | % | ||||||||||
Amount of adjusted capital and surplus used to determine recovery period and threshold limitation |
$ | 165,853 |
28
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | Change | |||||||||||
Ordinary | Capital | Total | ||||||||||
(a) Federal income taxes paid in prior years recoverable through loss carrybacks |
$ | | $ | 480 | $ | 480 | ||||||
(b) Adjusted gross deferred tax assets expected to be realized after application of the threshold limitation |
| | | |||||||||
(b.i) Adjusted gross deferred tax assets expected to be realized following the balance sheet date |
| | | |||||||||
(b.ii) Adjusted gross deferred tax assets allowed per limitation threshold |
N/A | N/A | (2,341 | ) | ||||||||
(c) Adjusted gross deferred tax assets offset by gross deferred tax liabilities |
117 | 1 | 118 | |||||||||
|
|
|
|
|
|
|||||||
(d) Deferred tax assets admitted as the result of application of SSAP No. 101 |
$ | 117 | $ | 481 | $ | 598 | ||||||
|
|
|
|
|
|
|||||||
Ratio percentage used to determine recovery period and threshold limitation amount |
-88 | % | ||||||||||
Amount of adjusted capital and surplus used to determine recovery period and threshold limitation |
$ | (15,605 | ) |
The Company does not employ reinsurance related tax planning strategies.
The Company is currently recognizing all deferred tax liabilities.
Current income taxes incurred consist of the following major components for the years ended December 31, 2022 and 2021:
(in thousands of dollars) | 2022 | 2021 | Change | |||||||||
Federal |
$ | 3,418 | $ | (17,754 | ) | $ | 21,172 | |||||
Foreign |
| | | |||||||||
|
|
|
|
|
|
|||||||
Subtotal |
3,418 | (17,754 | ) | 21,172 | ||||||||
Federal income tax on net capital gains (losses) |
(4,306 | ) | 800 | (5,106 | ) | |||||||
|
|
|
|
|
|
|||||||
Federal and foreign income taxes incurred |
$ | (888 | ) | $ | (16,954 | ) | $ | 16,066 | ||||
|
|
|
|
|
|
29
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
As of December 31, 2022 and 2021, the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows:
(in thousands of dollars) | 2022 | 2021 | Change | |||||||||
Deferred tax assets |
||||||||||||
Ordinary: |
||||||||||||
Unearned premium reserves |
$ | | $ | 5 | $ | (5 | ) | |||||
Policyholder reserves |
87,480 | 87,179 | 301 | |||||||||
Deferred acquisition costs |
79,149 | 73,544 | 5,605 | |||||||||
Nonadmitted assets |
1,340 | 172 | 1,168 | |||||||||
Compensation and benefits accrual |
| 253 | (253 | ) | ||||||||
Accruals not currently deductible |
360 | 62 | 298 | |||||||||
Other |
516 | 549 | (33 | ) | ||||||||
|
|
|
|
|
|
|||||||
168,845 | 161,764 | 7,081 | ||||||||||
Nonadmitted deferred tax assets |
(161,907 | ) | (154,943 | ) | (6,964 | ) | ||||||
|
|
|
|
|
|
|||||||
Admitted ordinary deferred tax assets |
6,938 | 6,821 | 117 | |||||||||
|
|
|
|
|
|
|||||||
Capital: |
||||||||||||
Investments |
1,017 | 588 | 429 | |||||||||
Other |
660 | 572 | 88 | |||||||||
|
|
|
|
|
|
|||||||
1,677 | 1,160 | 517 | ||||||||||
Nonadmitted deferred tax assets |
(141 | ) | (105 | ) | (36 | ) | ||||||
|
|
|
|
|
|
|||||||
Admitted capital deferred tax assets |
1,536 | 1,055 | 481 | |||||||||
|
|
|
|
|
|
|||||||
Admitted deferred tax assets |
8,474 | 7,876 | 598 | |||||||||
|
|
|
|
|
|
|||||||
Deferred tax liabilities |
||||||||||||
Ordinary: |
||||||||||||
Policyholder reserves |
1,210 | 1,613 | (403 | ) | ||||||||
Fixed assets |
| 1 | (1 | ) | ||||||||
Investments |
970 | 728 | 242 | |||||||||
Deferred and uncollected premium |
4,352 | 4,479 | (127 | ) | ||||||||
Other |
406 | | 406 | |||||||||
|
|
|
|
|
|
|||||||
6,938 | 6,821 | 117 | ||||||||||
|
|
|
|
|
|
|||||||
Capital: |
||||||||||||
Other |
1 | | 1 | |||||||||
|
|
|
|
|
|
|||||||
1 | | 1 | ||||||||||
|
|
|
|
|
|
|||||||
Total deferred tax liabilities |
6,939 | 6,821 | 118 | |||||||||
|
|
|
|
|
|
|||||||
Net admitted deferred tax assets |
$ | 1,535 | $ | 1,055 | $ | 480 | ||||||
|
|
|
|
|
|
The change in net deferred income taxes, net of any valuation allowance, is composed of the following:
(in thousands of dollars) | 2022 | 2021 | Change | |||||||||
Total deferred tax assets |
$ | 170,522 | $ | 162,924 | $ | 7,598 | ||||||
Total deferred tax liabilities |
6,939 | 6,821 | 118 | |||||||||
|
|
|
|
|
|
|||||||
Net deferred tax asset |
$ | 163,583 | $ | 156,103 | 7,480 | |||||||
|
|
|
|
|
|
|||||||
Tax effect of unrealized gains |
| |||||||||||
|
|
|||||||||||
Change in net deferred income tax asset |
$ | 7,480 | ||||||||||
|
|
30
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
The provision for federal income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate at 21% for 2022, 2021 and 2020 to income before income taxes. The significant items causing this difference are as follows:
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Pre-tax loss from operations |
$ | (7,539 | ) | $ | (18,318 | ) | $ | (18,866 | ) | |||
Pre-tax realized capital (losses) gains before transfer to IMR |
(23,062 | ) | 2,259 | 2,741 | ||||||||
|
|
|
|
|
|
|||||||
Total pre-tax loss |
$ | (30,601 | ) | $ | (16,059 | ) | $ | (16,125 | ) | |||
|
|
|
|
|
|
|||||||
Provision computed at statutory rate |
$ | (6,426 | ) | $ | (3,372 | ) | $ | (3,386 | ) | |||
Amortization of interest maintenance reserve |
(39 | ) | (682 | ) | 1,632 | |||||||
Separate accounts dividend received deduction |
(288 | ) | (639 | ) | (749 | ) | ||||||
Ceding commission included in surplus |
(91 | ) | (85 | ) | (78 | ) | ||||||
Nonadmitted assets |
(1,168 | ) | 313 | (89 | ) | |||||||
Provision to return |
(390 | ) | (296 | ) | (22,138 | ) | ||||||
Internal Revenue Service (IRS) audit adjustment |
(33 | ) | (38 | ) | | |||||||
Life loss carryback - CARES Act |
| | (9,087 | ) | ||||||||
Other |
67 | (234 | ) | 29 | ||||||||
|
|
|
|
|
|
|||||||
Total statutory income taxes |
$ | (8,368 | ) | $ | (5,033 | ) | $ | (33,866 | ) | |||
|
|
|
|
|
|
|||||||
Federal income tax expense (benefit) |
$ | 3,418 | $ | (17,754 | ) | $ | 60,245 | |||||
Tax on capital (losses) gains |
(4,306 | ) | 800 | 2,776 | ||||||||
Less: Change in net deferred income tax |
(7,480 | ) | 11,921 | (96,887 | ) | |||||||
|
|
|
|
|
|
|||||||
Total statutory income taxes |
$ | (8,368 | ) | $ | (5,033 | ) | $ | (33,866 | ) | |||
|
|
|
|
|
|
As of December 31, 2022, the Company did not have any operating loss carryforwards.
There was no aggregate amount of deposits reported as admitted assets under Section 6603 of the IRS code as of December 31, 2022.
31
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
The Companys federal income tax return is consolidated with the following entities, with ZHCA as the parent:
American Guarantee and Liability Insurance Company | Zurich Agency Services, Inc. | |
American Zurich Insurance Company | Zurich Alternative Asset Management, LLC | |
Colonial American Casualty & Surety Company | Zurich American Insurance Company | |
Empire Fire and Marine Insurance Company | Zurich American Insurance Company of Illinois | |
Empire Indemnity Insurance Company | Zurich American Life Insurance Company | |
Fidelity & Deposit Company of Maryland | Zurich American Life Insurance Company of New York | |
Hoplite Reinsurance Company of Vermont, Inc. | Zurich CZI Management Holding, Ltd. | |
Rural Community Insurance Company | Zurich E & S Insurance Brokerage, Inc. | |
Special Insurance Services, Inc. | Zurich F & I Reinsurance T & C Limited | |
Steadfast Insurance Company | Zurich Global, Ltd. | |
The Zurich Services Corporation | Zurich Global Investment Management Inc. | |
Universal Underwriters Insurance Company | Zurich Holding Company of America, Inc. | |
Universal Underwriters of Texas Insurance Company | Zurich Latin America Corporation | |
Universal Underwriters Service Corporation | Zurich Realty, Inc. | |
Vehicle Dealer Solutions, Inc. |
A written agreement sets out the method of allocating tax between the companies. In general, the allocation is based upon a separate return calculation with an immediate benefit for a taxable loss. Intercompany tax balances are settled within thirty days after the filing of the consolidated federal income tax return, the payment of an estimated payment, an additional assessment of the consolidated tax liability, a refund of the consolidated tax liability or any other reduction to the members apportioned tax liability in accordance with the tax sharing agreement.
The Company joins with its U.S. parent, ZHCA and other affiliates, in filing a consolidated U.S. federal income tax return. The statutes of limitations for all income tax returns through tax year 2017 are closed, and all IRS examinations are closed through tax year 2019. The Company is not currently under any IRS income tax audits.
Corporate Alternative Minimum Tax (CAMT) is a part of the Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022. The controlled group of corporations of which the Company is a member has not yet been determined, as of the reporting date, if they will be liable for CAMT in 2023. The fourth quarter 2022 financial statements do not include the estimated impact of the CAMT, because a reasonable estimate cannot be made. Based upon projected adjusted financial statement income for 2023, the controlled group of corporations has determined that average adjusted financial statement income is above the thresholds for the 2023 tax year such that they expect to be required to perform the CAMT calculations.
At December 31, 2022, the Company did not have any uncertain tax positions. Based upon existing information, the Company does not anticipate any expected development for uncertain tax positions in the next twelve months.
As of December 31, 2022, the Company has not recognized any amounts for interest or penalties related to uncertain tax positions. However, in the event the Company determines a change in liability is appropriate in the future, interest or penalty related to an uncertain tax position will be recognized as a component of the income tax provision.
32
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
The Company does not have any tax loss contingencies for which it is reasonably possible that the total liability will significantly increase within twelve months of the reporting date.
6. Information Concerning Parent, Subsidiaries and Affiliates
On September 2, 2010, the Company established ZALICONY. The carrying value of ZALICONY as of December 31, 2022 and 2021 is $22,144,649 and $20,266,915, respectively. The Company has entered into a related party services agreement with ZALICONY.
There were no capital contributions made to the Company in 2022 or 2021.
On August 6, 2020, the Company received a capital contribution of $35,000,000 from ZAC. On September 18, 2020, and December 15, 2020, two additional capital contributions of $20,000,000 each were received from ZAC.
At December 31, 2022 and 2021, the Company reported the following amounts due from or to related parties:
(in thousands of dollars) | 2022 | 2021 | ||||||
Zurich Global Employee Benefits Solutions |
$ | 424 | $ | 270 | ||||
Zurich American Life Insurance Company of New York |
57 | 77 | ||||||
Other related parties |
2 | | ||||||
|
|
|
|
|||||
Receivables from related parties |
$ | 483 | $ | 347 | ||||
|
|
|
|
|||||
Zurich American Insurance Company |
$ | (5,965 | ) | $ | (3,645 | ) | ||
Zurich Global Investment Management Inc. |
(396 | ) | (184 | ) | ||||
Zurich Benefit Finance LLC |
(125 | ) | | |||||
ZNA Services, LLC |
(67 | ) | (73 | ) | ||||
Zurich Services US LLC |
(14 | ) | (16 | ) | ||||
The Zurich Services Corporation |
(5 | ) | | |||||
Zurich Holding Company of America, Inc. |
| (6,538 | ) | |||||
Centre Group Holdings (U.S.) Limited |
| (34 | ) | |||||
Other related parties |
| (20 | ) | |||||
|
|
|
|
|||||
Payables to related parties |
$ | (6,572 | ) | $ | (10,510 | ) | ||
|
|
|
|
|||||
Net payables to related parties |
$ | (6,089 | ) | $ | (10,163 | ) | ||
|
|
|
|
33
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
For the years 2022, 2021 and 2020, the Company incurred the following amounts of expense in association with services, such as administrative services, advisory services, claim services and risk engineering services, provided by related parties:
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Zurich American Insurance Company |
$ | 15,154 | $ | 15,497 | $ | 8,998 | ||||||
Zurich Global Investment Management Inc. |
1,080 | 885 | 892 | |||||||||
Zurich Insurance Group |
847 | 847 | 690 | |||||||||
ZNA Services, LLC |
786 | 752 | 1,158 | |||||||||
Zurich Benefit Finance LLC |
325 | | | |||||||||
Zurich Investment Services Ltd |
238 | 268 | 327 | |||||||||
Farmers Group, Inc. |
220 | 114 | 131 | |||||||||
Zurich Services US LLC |
190 | 183 | 290 | |||||||||
The Zurich Services Corporation |
11 | | 14 | |||||||||
Zurich American Life Insurance Company of New York |
(555 | ) | (759 | ) | (708 | ) | ||||||
Zurich Global Employee Benefit Solutions |
(2,028 | ) | (1,137 | ) | (988 | ) | ||||||
|
|
|
|
|
|
|||||||
Expenses incurred in association with services provided by related parties |
$ | 16,268 | $ | 16,650 | $ | 10,804 | ||||||
|
|
|
|
|
|
Related party receivables and payables are settled as provided in its agreements, generally within 45 days from date of invoice.
The Company has a service agreement, technology support agreement, and license and service agreement with Bancorp and ZBF. Bancorp is responsible for certain administrative functions on certain of the Companys private placement variable life insurance policies. ZBF is appointed to be the product technology support provider in the administration of certain private placement variable life insurance policies issued by the Company. The Companys license and service agreement with Bancorp and ZBF governs the terms and conditions under which certain technology may be used in the administration of certain private placement variable life insurance policies issued by the Company that includes illustration software license.
The Company has a principal underwriter agreement and service agreements with BFPS. BFPS is the principal underwriter for a closed block of the Companys variable, fixed and market value-adjusted annuities. BFPS provides certain services for the distribution of the Companys private placement variable life insurance and variable annuity policies. BFPS also provides certain services relating to certain employees and independent contractors of the Company becoming and remaining registered representatives of BFPS.
The Company has a Stable Value Protection Option Master Agreement (whereby the Company is acting on behalf of the sub-divisions of the Stable-Value-Protected Divisions of the ZALICO Variable Series I Separate Account) with ZIC.
The Company has a Real Estate Advisory Agreement with its affiliate Zurich Global Investment Management Inc. (ZGIM), under which ZGIM may provide certain services on real estate activities to the Company on an ongoing basis.
The Company has service agreements with its affiliates ZIC, Farmers New World Life (FNWL), Zurich American Insurance Company (ZAIC), and ZALICONY for each to perform administrative services reasonably necessary in the ordinary course of business.
34
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
The Company has an investment advisory service agreement with its affiliate, Zurich Investment Services Ltd. (ZIS) and ZGIM, to perform investment advisory services reasonably necessary in the ordinary course of business.
The Company has a customer service level overview agreement with its affiliate, ZFUS Services, LLC (ZFUS), for ZFUS to provide management, administrative and general services.
The Company has a service agreement with its affiliate, Zurich Life Insurance Company Ltd (ZLIC), for the Company to provide referral, sales support and other administrative services for ZLIC.
The Company has a service agreement with The Zurich Services Corporation (ZSC) pursuant to which the Company receives services from ZSC that may include claim services, risk engineering services, care center services and other services.
The Company has a service agreement with its affiliate, Zurich Services US LLC (ZSUS), for ZSUS to provide human resources services, administrative and general services.
The Company has a Multilateral Data Protection Agreement for Data Transfers in Business Systems with ZIG. The agreement governs the handling of personal data sent cross border within the Zurich global organization.
See footnote 8 for the disclosure regarding the Companys reinsurance activities with affiliates.
7. Life Reserves
Life reserves are based on mortality tables approved by the NAIC using statutory specified interest rates and valuation methods that provide, in aggregate, reserves that are greater than or equal to the minimum required by the Illinois Department of Insurance. The aggregate reserves for life policies and contracts have been computed primarily utilizing the CARVM based on the statutory maximum valuation interest rates and minimum statutory mortality rates which were allowed by state authorities at the time the policies were issued.
Tabular Interest, Tabular less Actual Reserve Released and Tabular Cost have been determined by formulas in accordance with the NAIC Annual Statement Instructions.
For the determination of Tabular Interest on funds not involving life contingencies for each valuation rate of interest, the Tabular Interest is calculated as one hundredth of the product of such valuation rate of interest multiplied by the mean of the amount of funds subject to such valuation rate of interest held at the beginning and end of the year of valuation.
35
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
The reconciliation of total actuarial reserves and other liabilities as of December 31, 2022 and 2021 were as follows:
(in thousands of dollars) | 2022 | 2021 | ||||||
Policy Liabilities in the General Account |
||||||||
Life insurance |
$ | 303,842 | $ | 302,496 | ||||
Accidental death benefits |
1 | 1 | ||||||
Disabilityactive lives |
83 | 88 | ||||||
Annuities (excluding supplementary contracts) |
100,542 | 99,586 | ||||||
Supplementary contracts with life contingencies |
200,712 | 213,099 | ||||||
Supplemental contracts without life contingencies |
4,230 | 4,538 | ||||||
Miscellaneous reserves |
927 | 983 | ||||||
Claims and benefits payable to policyholders |
82,316 | 77,842 | ||||||
|
|
|
|
|||||
Total general account |
692,653 | 698,633 | ||||||
|
|
|
|
|||||
Policy Liabilities in the Separate Account |
||||||||
Life insurance |
12,680,309 | 12,432,142 | ||||||
Annuities (excluding supplementary contracts) |
2,962,931 | 3,052,884 | ||||||
Supplementary contracts including life contingencies |
1,788 | 2,220 | ||||||
Liability for deposit-type contracts |
126 | 236 | ||||||
Other liabilities |
50,298 | 34,191 | ||||||
|
|
|
|
|||||
Total separate account |
15,695,452 | 15,521,673 | ||||||
|
|
|
|
|||||
Total policy liabilities |
$ | 16,388,105 | $ | 16,220,306 | ||||
|
|
|
|
The Companys universal life policies with secondary guarantees (SGUL policies) in force at December 31, 2022 and 2021, were calculated under Actuarial Guideline XXXVIII (AG38), paragraphs 8D and 8E, which take into account the shadow accounts used for the lapse protection. In addition, a single deterministic projection was run as required in AG38 paragraph 8D, which was required for policies issued through December 31, 2012. This is a gross premium valuation using best estimate assumptions plus conservative margins and the asset assumptions include limitations with respect to the particular assets and asset yields.
The gross premium valuation was used for policies issued prior to December 31, 2012, since it exceeded the formulaic reserve. The Companys gross reserves for all SGUL policies were $103,760,000 and $96,703,000 as of December 31, 2022 and 2021, respectively. The Company cedes 100% of this business to ZIC.
In June 2016, the NAIC adopted a recommendation to activate a principles-based reserving (PBR) approach for life insurance products in order to more accurately reflect the risks or costs of the liability or obligations of the insurer. During 2020, the Company implemented PBR for individual life policies under Section 20 of the Valuation Manual (VM-20) with issue dates of January 1, 2020 and later. Due to the Companys reinsurance agreements currently in place, there was no material impact to the Company.
The Company also implemented PBR for variable annuity contracts and certain other policies and contracts under Section 21 of the Valuation Manual (VM-21) for all contracts in force. Due to the Companys reinsurance agreements currently in place, the Company has only retained $3.9 million of such reserves as of December 31, 2020. The valuation methodology used to value certain variable annuity reserves prior to the adoption of PBR was Actuarial Guideline 43 (AG-43). The Company did not elect the 36-month phase-in period option provided in VM-21.
36
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Analysis of General Account Life Actuarial Reserves by Withdrawal Characteristics
Life actuarial reserves by withdrawal characteristics as of December 31, 2022 and 2021 were as follows:
(in thousands of dollars) | ||||||||||||||
2022 General Account |
Account Value | Cash Value | Reserve | |||||||||||
A. |
Subject to discretionary withdrawal, surrender |
|||||||||||||
values or policy loans: |
||||||||||||||
1. Term policies with cash value |
$ | | $ | | $ | | ||||||||
2. Universal life |
283,661 | 282,358 | 290,133 | |||||||||||
3. Universal life with secondary guarantees |
31,211 | 26,571 | 103,134 | |||||||||||
4. Indexed universal life |
693,725 | 562,098 | 705,547 | |||||||||||
5. Indexed universal life with secondary guarantees |
| | | |||||||||||
6. Indexed life |
| | | |||||||||||
7. Other permanent cash value life insurance |
28,156 | 28,156 | 29,780 | |||||||||||
8. Variable life |
| | | |||||||||||
9. Variable universal life |
206,861 | 206,861 | 210,759 | |||||||||||
10. Miscellaneous reserves |
| | 12,154 | |||||||||||
B. |
Not subject to discretionary withdrawal or no cash values: |
|||||||||||||
1. Term policies with cash value |
| | 79,806 | |||||||||||
2. Accidental death benefits |
| | 1 | |||||||||||
3. Disability - active lives |
| | 91 | |||||||||||
4. Disability - disabled lives |
| | 177 | |||||||||||
5. Miscellaneous reserves |
| | 5,896 | |||||||||||
|
|
|
|
|
|
|||||||||
C. |
Total (gross: direct + assumed) |
1,243,614 | 1,106,044 | 1,437,478 | ||||||||||
D. |
Reinsurance ceded |
981,700 | 844,130 | 1,132,625 | ||||||||||
|
|
|
|
|
|
|||||||||
E. |
Total (net) * (C)-(D) |
$ | 261,914 | $ | 261,914 | $ | 304,853 | |||||||
|
|
|
|
|
|
37
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | ||||||||||||||
2022 | ||||||||||||||
Separate Account Nonguaranteed | Account Value | Cash Value | Reserve | |||||||||||
A. |
Subject to discretionary withdrawal, surrender | |||||||||||||
values or policy loans: | ||||||||||||||
1. Term policies with cash value | $ | | $ | | $ | | ||||||||
2. Universal life | | | | |||||||||||
3. Universal life with secondary guarantees | | | | |||||||||||
4. Indexed universal life | | | | |||||||||||
5. Indexed universal life with secondary guarantees | | | | |||||||||||
6. Indexed life | | | | |||||||||||
7. Other permanent cash value life insurance | | | | |||||||||||
8. Variable life | | | | |||||||||||
9. Variable universal life | 12,680,309 | 12,680,309 | 12,680,309 | |||||||||||
10. Miscellaneous reserves | | | | |||||||||||
B. |
Not subject to discretionary withdrawal or no cash values: |
|
||||||||||||
1. Term policies with cash value | | | | |||||||||||
2. Accidental death benefits | | | | |||||||||||
3. Disability - active lives | | | | |||||||||||
4. Disability - disabled lives | | | | |||||||||||
5. Miscellaneous reserves | | | | |||||||||||
|
|
|
|
|
|
|||||||||
C. |
Total (gross: direct + assumed) | 12,680,309 | 12,680,309 | 12,680,309 | ||||||||||
D. |
Reinsurance ceded | | | | ||||||||||
|
|
|
|
|
|
|||||||||
E. |
Total (net) * (C)-(D) | $ | 12,680,309 | $ | 12,680,309 | $ | 12,680,309 | |||||||
|
|
|
|
|
|
38
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | ||||||||||||||
2021 | ||||||||||||||
General Account | Account Value | Cash Value | Reserve | |||||||||||
A. |
Subject to discretionary withdrawal, surrender |
|||||||||||||
values or policy loans: |
||||||||||||||
1. Term policies with cash value |
$ | | $ | | $ | | ||||||||
2. Universal life |
301,287 | 299,825 | 312,390 | |||||||||||
3. Universal life with secondary guarantees |
32,571 | 25,336 | 96,703 | |||||||||||
4. Indexed universal life |
615,894 | 479,756 | 606,424 | |||||||||||
5. Indexed universal life with secondary guarantees |
| | | |||||||||||
6. Indexed life |
| | | |||||||||||
7. Other permanent cash value life insurance |
28,758 | 28,758 | 30,458 | |||||||||||
8. Variable life |
| | | |||||||||||
9. Variable universal life |
201,095 | 201,095 | 204,896 | |||||||||||
10. Miscellaneous reserves |
| | 10,953 | |||||||||||
B. |
Not subject to discretionary withdrawal or no cash values: |
|||||||||||||
1. Term policies with cash value |
| | 80,432 | |||||||||||
2. Accidental death benefits |
| | 1 | |||||||||||
3. Disability - active lives |
| | 97 | |||||||||||
4. Disability - disabled lives |
| | 173 | |||||||||||
5. Miscellaneous reserves |
| | 10,104 | |||||||||||
|
|
|
|
|
|
|||||||||
C. |
Total (gross: direct + assumed) |
1,179,605 | 1,034,770 | 1,352,631 | ||||||||||
D. |
Reinsurance ceded |
922,603 | 777,768 | 1,049,063 | ||||||||||
|
|
|
|
|
|
|||||||||
E. |
Total (net) * (C)-(D) |
$ | 257,002 | $ | 257,002 | $ | 303,568 | |||||||
|
|
|
|
|
|
39
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | ||||||||||||||
2021 | ||||||||||||||
Separate Account Nonguaranteed | Account Value | Cash Value | Reserve | |||||||||||
A. |
Subject to discretionary withdrawal, surrender | |||||||||||||
values or policy loans: | ||||||||||||||
1. Term policies with cash value | $ | | $ | | $ | | ||||||||
2. Universal life | | | | |||||||||||
3. Universal life with secondary guarantees | | | | |||||||||||
4. Indexed universal life | | | | |||||||||||
5. Indexed universal life with secondary guarantees | | | | |||||||||||
6. Indexed life | | | | |||||||||||
7. Other permanent cash value life insurance | | | | |||||||||||
8. Variable life | | | | |||||||||||
9. Variable universal life | 12,432,142 | 12,432,142 | 12,432,142 | |||||||||||
10. Miscellaneous reserves | | | | |||||||||||
B. |
Not subject to discretionary withdrawal or no cash values: | |||||||||||||
1. Term policies with cash value | | | | |||||||||||
2. Accidental death benefits | | | | |||||||||||
3. Disability - active lives | | | | |||||||||||
4. Disability - disabled lives | | | | |||||||||||
5. Miscellaneous reserves | | | | |||||||||||
|
|
|
|
|
|
|||||||||
C. |
Total (gross: direct + assumed) | 12,432,142 | 12,432,142 | 12,432,142 | ||||||||||
D. |
Reinsurance ceded | | | | ||||||||||
|
|
|
|
|
|
|||||||||
E. |
Total (net) * (C)-(D) | $ | 12,432,142 | $ | 12,432,142 | $ | 12,432,142 | |||||||
|
|
|
|
|
|
The reconciliation of life actuarial reserves by type as of December 31, 2022 and 2021 were as follows:
(in thousands of dollars) | 2022 | 2021 | ||||||
Life Actuarial Reserves |
||||||||
Life insurance |
$ | 303,842 | $ | 302,496 | ||||
Accidental death benefits |
1 | 1 | ||||||
Disability - active lives |
83 | 88 | ||||||
Miscellaneous reserves |
927 | 983 | ||||||
|
|
|
|
|||||
Total life |
$ | 304,853 | $ | 303,568 | ||||
|
|
|
|
40
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Analysis of Annuity Actuarial Reserves and Deposit Liabilities by Withdrawal Characteristics
Annuity actuarial reserves and deposit-type contract funds and other liabilities without life or disability contingencies by withdrawal characteristics as of December 31, 2022 and 2021 were as follows:
(in thousands of dollars) | ||||||||||||||||||||||
2022 Individual Annuities |
General Account |
Separate Account With Guarantees |
Separate Account Nonguaranteed |
Total | % of Total | |||||||||||||||||
A. |
Subject to discretionary withdrawal: | |||||||||||||||||||||
1. With market value adjustment | $ | 44,444 | $ | 1,773 | $ | | $ | 46,217 | 1.23 | % | ||||||||||||
2. At book value less surrender charge of 5% or more | 1,564 | | | 1,564 | 0.04 | % | ||||||||||||||||
3. At fair value | | | 1,876,869 | 1,876,869 | 49.92 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
4. Total with adjustment or at market value (total of 1 through 3) | 46,008 | 1,773 | 1,876,869 | 1,924,650 | 51.19 | % | ||||||||||||||||
5. At book value without adjustment (minimal or no charge or adjustment) | 1,353,116 | | | 1,353,116 | 35.99 | % | ||||||||||||||||
B. |
Not subject to discretionary withdrawal | 480,185 | | 1,788 | 481,973 | 12.82 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
C. |
Total (gross: direct + assumed) | 1,879,309 | 1,773 | 1,878,657 | 3,759,739 | 100.00 | % | |||||||||||||||
|
|
|||||||||||||||||||||
D. |
Reinsurance ceded | 1,662,583 | | | 1,662,583 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
E. |
Total (net) * (C)-(D) | $ | 216,726 | $ | 1,773 | $ | 1,878,657 | $ | 2,097,156 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Annuities (excluding supplementary contracts) | $ | 16,014 | $ | 1,773 | $ | 1,876,869 | $ | 1,894,656 | ||||||||||||||
Supplementary contracts with life contingencies | 200,712 | | 1,788 | 202,500 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Total (net) |
$ | 216,726 | $ | 1,773 | $ | 1,878,657 | $ | 2,097,156 | ||||||||||||||
|
|
|
|
|
|
|
|
41
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | ||||||||||||||||||||||
2022 Group Annuities |
General Account |
Separate Account With Guarantees |
Separate Account Nonguaranteed |
Total | % of Total | |||||||||||||||||
A. |
Subject to discretionary withdrawal: | |||||||||||||||||||||
1. With market value adjustment | $ | 11,293 | $ | 4,647 | $ | | $ | 15,940 | 1.10 | % | ||||||||||||
2. At book value less surrender charge of 5% or more | 84 | | | 84 | 0.01 | % | ||||||||||||||||
3. At fair value | | | 1,079,642 | 1,079,642 | 74.61 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
4. Total with adjustment or at market value (total of 1 through 3) | 11,377 | 4,647 | 1,079,642 | 1,095,666 | 75.72 | % | ||||||||||||||||
5. At book value without adjustment (minimal or no charge or adjustment) | 125,937 | | | 125,937 | 8.70 | % | ||||||||||||||||
B. |
Not subject to discretionary withdrawal | 225,435 | | | 225,435 | 15.58 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
C. |
Total (gross: direct + assumed) | 362,749 | 4,647 | 1,079,642 | 1,447,038 | 100.00 | % | |||||||||||||||
|
|
|||||||||||||||||||||
D. |
Reinsurance ceded | 278,221 | | | 278,221 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
E. |
Total (net) * (C)-(D) | $ | 84,528 | $ | 4,647 | $ | 1,079,642 | $ | 1,168,817 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Annuities (excluding supplementary contracts) | $ | 84,528 | $ | 4,647 | $ | 1,079,642 | $ | 1,168,817 | ||||||||||||||
Supplementary contracts with life contingencies | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Total (net) | $ | 84,528 | $ | 4,647 | $ | 1,079,642 | $ | 1,168,817 | ||||||||||||||
|
|
|
|
|
|
|
|
(in thousands of dollars) | ||||||||||||||||||||||
2022 Deposit-Type Contracts |
General Account |
Separate Account With Guarantees |
Separate Account Nonguaranteed |
Total | % of Total | |||||||||||||||||
A. |
Subject to discretionary withdrawal: | |||||||||||||||||||||
1. With market value adjustment | $ | | $ | | $ | | $ | | 0.00 | % | ||||||||||||
2. At book value less surrender charge of 5% or more | | | | | 0.00 | % | ||||||||||||||||
3. At fair value | | | | | 0.00 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
4. Total with adjustment or at market value (total of 1 through 3) | | | | | 0.00 | % | ||||||||||||||||
5. At book value without adjustment (minimal or no charge or adjustment) | 9,503 | | | 9,503 | 31.99 | % | ||||||||||||||||
B. |
Not subject to discretionary withdrawal | 20,077 | | 126 | 20,203 | 68.01 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
C. |
Total (gross: direct + assumed) | 29,580 | | 126 | 29,706 | 100.00 | % | |||||||||||||||
|
|
|||||||||||||||||||||
D. |
Reinsurance ceded | 25,350 | | | 25,350 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
E. |
Total (net) * (C)-(D) | $ | 4,230 | $ | | $ | 126 | $ | 4,356 | |||||||||||||
|
|
|
|
|
|
|
|
42
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | ||||||||||||||||||||||
2021 Individual Annuities |
General Account |
Separate Account With Guarantees |
Separate Account Nonguaranteed |
Total | % of Total | |||||||||||||||||
A. |
Subject to discretionary withdrawal: | |||||||||||||||||||||
1. With market value adjustment | $ | 59,299 | $ | 1,133 | $ | | $ | 60,432 | 1.55 | % | ||||||||||||
2. At book value less surrender charge of 5% or more | 5,448 | | | 5,448 | 0.14 | % | ||||||||||||||||
3. At fair value | | | 1,966,504 | 1,966,504 | 50.43 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
4. Total with adjustment or at market value (total of 1 through 3) | 64,747 | 1,133 | 1,966,504 | 2,032,384 | 52.12 | % | ||||||||||||||||
5. At book value without adjustment (minimal or no charge or adjustment) | 1,512,310 | | | 1,512,310 | 38.78 | % | ||||||||||||||||
B. |
Not subject to discretionary withdrawal | 352,740 | | 2,319 | 355,059 | 9.10 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
C. |
Total (gross: direct + assumed) | 1,929,797 | 1,133 | 1,968,823 | 3,899,753 | 100.00 | % | |||||||||||||||
|
|
|||||||||||||||||||||
D. |
Reinsurance ceded | 1,701,981 | | | 1,701,981 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
E. |
Total (net) * (C)-(D) | $ | 227,816 | $ | 1,133 | $ | 1,968,823 | $ | 2,197,772 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Annuities (excluding supplementary contracts) | $ | 14,717 | $ | 1,133 | $ | 1,966,603 | $ | 1,982,453 | ||||||||||||||
Supplementary contracts with life contingencies | 213,099 | | 2,220 | 215,319 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Total (net) | $ | 227,816 | $ | 1,133 | $ | 1,968,823 | $ | 2,197,772 | ||||||||||||||
|
|
|
|
|
|
|
|
43
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | ||||||||||||||||||||||
2021 Group Annuities |
General Account |
Separate Account With Guarantees |
Separate Account Nonguaranteed |
Total | % of Total | |||||||||||||||||
A. |
Subject to discretionary withdrawal: | |||||||||||||||||||||
1. With market value adjustment | $ | | $ | 5,372 | $ | | $ | 5,372 | 0.37 | % | ||||||||||||
2. At book value less surrender charge of 5% or more | | | | | 0.00 | % | ||||||||||||||||
3. At fair value | | | 1,079,776 | 1,079,776 | 74.79 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
4. Total with adjustment or at market value (total of 1 through 3) | | 5,372 | 1,079,776 | 1,085,148 | 75.17 | % | ||||||||||||||||
5. At book value without adjustment (minimal or no charge or adjustment) | | | | | 0.00 | % | ||||||||||||||||
B. |
Not subject to discretionary withdrawal | 358,518 | | | 358,518 | 24.83 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
C. |
Total (gross: direct + assumed) | 358,518 | 5,372 | 1,079,776 | 1,443,666 | 100.00 | % | |||||||||||||||
|
|
|||||||||||||||||||||
D. |
Reinsurance ceded | 273,649 | | | 273,649 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
E. |
Total (net) * (C)-(D) | $ | 84,869 | $ | 5,372 | $ | 1,079,776 | $ | 1,170,017 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Annuities (excluding supplementary contracts) | $ | 84,869 | $ | 5,372 | $ | 1,079,776 | $ | 1,170,017 | ||||||||||||||
Supplementary contracts with life contingencies | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Total (net) | $ | 84,869 | $ | 5,372 | $ | 1,079,776 | $ | 1,170,017 | ||||||||||||||
|
|
|
|
|
|
|
|
(in thousands of dollars) | ||||||||||||||||||||||
2021 Deposit-Type Contracts |
General Account |
Separate Account With Guarantees |
Separate Account Nonguaranteed |
Total | % of Total | |||||||||||||||||
A. |
Subject to discretionary withdrawal: | |||||||||||||||||||||
1. With market value adjustment | $ | | $ | | $ | | $ | | 0.00 | % | ||||||||||||
2. At book value less surrender charge of 5% or more | | | | | 0.00 | % | ||||||||||||||||
3. At fair value | | | | | 0.00 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
4. Total with adjustment or at market value (total of 1 through 3) | | | | | 0.00 | % | ||||||||||||||||
5. At book value without adjustment (minimal or no charge or adjustment) | | | | | 0.00 | % | ||||||||||||||||
B. |
Not subject to discretionary withdrawal | 33,548 | 236 | | 33,784 | 100.00 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
C. |
Total (gross: direct + assumed) | 33,548 | 236 | | 33,784 | 100.00 | % | |||||||||||||||
|
|
|||||||||||||||||||||
D. |
Reinsurance ceded | 29,010 | | | 29,010 | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
E. |
Total (net) * (C)-(D) | $ | 4,538 | $ | 236 | $ | | $ | 4,774 | |||||||||||||
|
|
|
|
|
|
|
|
44
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Variable Annuities with Guaranteed Living Benefits
The Companys variable annuities with guaranteed living benefits for DESTINATIONS products at December 31, 2022 and 2021 are as follows:
(in thousands of dollars) | Guaranteed Living Benefits | |||||||||||
Benefit and Type of Risk | Subjected Account Value |
Amount of Reserve Held Net |
Total Reinsurance Ceded |
|||||||||
Guaranteed retirement income benefit (GRIB) (Waiting period 7, 10 or 15 years) |
||||||||||||
December 31, 2022 |
$ | 540,496 | $ | 7,097 | $ | 255,336 | ||||||
December 31, 2021 |
$ | 728,543 | $ | 3,937 | $ | 240,717 |
The GRIB base is the greatest of account value, greatest anniversary value or net deposits accumulated at 5%. As of December 31, 2022 and 2021, the Company ceded $204,269,000 and $192,574,000 of this business to ZIC, with the remainder ceded to unaffiliated insurance companies.
8. Reinsurance
The Company has assumed and ceded business using yearly renewable term contracts, accidental death and disability contracts and coinsurance contracts to affiliate and third party reinsurers. The Company remains primarily responsible to its policyholders for all future claims and policyholder benefits related to the blocks of business ceded and is not relieved of its obligations to the extent any reinsurer does not meet its obligation to the Company.
Failure of the reinsurers to honor their obligations could result in losses to the Company; consequently, estimates are established for amounts deemed or estimated to be uncollectible. To minimize its exposure to significant losses from reinsurance insolvencies, the Company utilizes several reinsurers to minimize concentration of credit risk and evaluates the financial condition of its reinsurers and concentration of credit risk of its reinsurers. Several reinsurance contracts require the reinsurer to maintain assets in a security trust whose market value matches or exceeds the book value of the reinsured liability.
There was no reinsurance in unauthorized and certified companies in 2022 or 2021. There was $316,852 of reinsurance in unauthorized and certified companies in 2020.
45
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
The following is a breakdown of direct, assumed and ceded premiums by major affiliated and unaffiliated insurance companies for the years ended December 31, 2022, 2021 and 2020:
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Direct and assumed premiums: |
$ | 1,300,874 | $ | 1,247,590 | $ | 952,090 | ||||||
Ceded premiums: |
||||||||||||
Affiliated insurance companies |
(176,680 | ) | (197,956 | ) | (125,889 | ) | ||||||
Unaffiliated insurance companies |
(194,575 | ) | (186,837 | ) | (212,101 | ) | ||||||
|
|
|
|
|
|
|||||||
Total premiums ceded |
(371,255 | ) | (384,793 | ) | (337,990 | ) | ||||||
|
|
|
|
|
|
|||||||
Premiums and annuity considerations |
$ | 929,619 | $ | 862,797 | $ | 614,100 | ||||||
|
|
|
|
|
|
|||||||
Breakdown of ceded premiums: |
||||||||||||
Affiliated insurance companies: |
||||||||||||
ZIC: |
||||||||||||
Recapture of CLP liabilities |
$ | | $ | | $ | 95,624 | ||||||
All other activity |
(176,680 | ) | (197,956 | ) | (221,513 | ) | ||||||
|
|
|
|
|
|
|||||||
Total affiliated insurance companies |
$ | (176,680 | ) | $ | (197,956 | ) | $ | (125,889 | ) | |||
|
|
|
|
|
|
|||||||
Unaffiliated insurance companies: |
||||||||||||
Aflac |
$ | (120,191 | ) | $ | (100,083 | ) | $ | (122,673 | ) | |||
Protective Life |
(58,870 | ) | (72,003 | ) | (75,244 | ) | ||||||
All others |
(15,514 | ) | (14,751 | ) | (14,184 | ) | ||||||
|
|
|
|
|
|
|||||||
Total unaffiliated insurance companies |
$ | (194,575 | ) | $ | (186,837 | ) | $ | (212,101 | ) | |||
|
|
|
|
|
|
As of December 31, 2022, 2021 and 2020, amounts assumed from unaffiliated insurance companies for life, annuity and disability products were as follows:
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Premiums assumed |
$ | 339 | $ | 299 | $ | 333 | ||||||
Benefits assumed |
159 | 169 | 164 | |||||||||
Reserves assumed |
2,166 | 2,157 | 36 |
The Company did not assume any amounts from affiliated insurance companies during 2022, 2021 or 2020.
46
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
As of December 31, 2022, 2021 and 2020, amounts associated with reinsurance reserves ceded to affiliated and unaffiliated insurance companies, including the related collateral held for such reserves for life, annuity and disability products were as follows:
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Reserves ceded as of December 31, |
||||||||||||
Affiliated insurance companies |
$ | 1,294,273 | $ | 1,199,475 | $ | 1,122,344 | ||||||
Unaffiliated insurance companies |
1,959,667 | 1,978,166 | 1,980,578 | |||||||||
|
|
|
|
|
|
|||||||
Total reserves ceded |
$ | 3,253,940 | $ | 3,177,641 | $ | 3,102,922 | ||||||
|
|
|
|
|
|
|||||||
Breakdown of total reserves ceded by liability type: |
||||||||||||
Individual annuities |
$ | 1,662,583 | $ | 1,701,981 | $ | 1,739,702 | ||||||
Group annuities |
278,221 | 273,649 | 314,358 | |||||||||
Deposit-type contracts |
25,350 | 29,010 | 30,261 | |||||||||
Life contract actuarial reserves |
1,132,625 | 1,049,063 | 928,461 | |||||||||
Accident and health |
155,161 | 123,938 | 90,140 | |||||||||
|
|
|
|
|
|
|||||||
Total reserves ceded |
$ | 3,253,940 | $ | 3,177,641 | $ | 3,102,922 | ||||||
|
|
|
|
|
|
|||||||
Breakdown of total reserves ceded by key reinsurer: |
||||||||||||
Affiliated insurance companies: |
||||||||||||
ZIC: |
||||||||||||
Variable universal life liabilities |
$ | 770,438 | $ | 676,768 | $ | 561,935 | ||||||
Variable annuity liabilities |
208,139 | 227,517 | 240,719 | |||||||||
GRIB liabilities |
204,269 | 192,574 | 228,451 | |||||||||
SGUL liabilities |
103,760 | 96,703 | 86,760 | |||||||||
CLP liabilities |
7,667 | 5,913 | 4,479 | |||||||||
|
|
|
|
|
|
|||||||
Total affiliated insurance companies |
$ | 1,294,273 | $ | 1,199,475 | $ | 1,122,344 | ||||||
|
|
|
|
|
|
|||||||
Unaffiliated insurance companies: |
||||||||||||
Protective Life |
$ | 1,688,920 | $ | 1,737,183 | $ | 1,759,852 | ||||||
Fidelity Life Association (FLA) |
69,489 | 72,213 | 75,386 | |||||||||
Aflac |
146,205 | 116,921 | 84,789 | |||||||||
All others |
55,053 | 51,849 | 60,551 | |||||||||
|
|
|
|
|
|
|||||||
Total unaffiliated insurance companies |
$ | 1,959,667 | $ | 1,978,166 | $ | 1,980,578 | ||||||
|
|
|
|
|
|
|||||||
Collateral held for total reserves ceded: |
||||||||||||
ZIC Security Trust account |
$ | 1,380,794 | $ | 1,294,947 | $ | 1,242,134 | ||||||
Protective Life Security Trust account |
1,630,445 | 1,710,147 | 1,811,235 | |||||||||
All other third party trust accounts |
1,311 | 1,311 | 1,311 | |||||||||
All other third party letters of credit |
8,750 | 8,000 | 6,500 |
ZIC established a Security Trust account for the exclusive benefit of the Company. The Bank of New York is the trustee. The trust account is funded with assets equal to at least 102% of the statutory reserve credit assumed by ZIC. The basis of the valuation of all collateral held is market value.
47
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
The collateral for the GRIB liabilities provided by ZIC, and the related list of assets held for the benefit of ZIC, as of December 31, 2022 and 2021 are as follows:
(in thousands of dollars) |
| |||||||
Variable Annuities Reserve |
Total Collateral |
|||||||
2022 |
||||||||
Bonds |
$ | 204,269 | $ | 1,153,709 | ||||
Equities |
| 8,080 | ||||||
Money market |
| 17,055 | ||||||
Unconditional letters of credit |
| 201,950 | ||||||
|
|
|
|
|||||
Total assets - for the benefit of the cedent |
$ | 204,269 | $ | 1,380,794 | ||||
|
|
|
|
|||||
2021 |
||||||||
Bonds |
$ | 192,574 | $ | 1,060,844 | ||||
Equities |
| 33,906 | ||||||
Money market |
| 747 | ||||||
Unconditional letters of credit |
| 199,450 | ||||||
|
|
|
|
|||||
Total assets - for the benefit of the cedent |
$ | 192,574 | $ | 1,294,947 | ||||
|
|
|
|
The face amount of insurance in force associated with reinsurance ceded to affiliated and unaffiliated insurance companies for life insurance in force at December 31, 2022 and 2021 were as follows:
(in thousands of dollars) | 2022 | 2021 | ||||||
Direct and assumed |
$ | 94,477,048 | $ | 93,023,968 | ||||
|
|
|
|
|||||
Ceded to |
||||||||
Affiliated insurance companies |
$ | 52,074,009 | $ | 52,482,987 | ||||
Unaffiliated insurance companies |
28,616,379 | 26,913,732 | ||||||
|
|
|
|
|||||
Total ceded |
$ | 80,690,388 | $ | 79,396,719 | ||||
|
|
|
|
As of December 31, 2022, 2021 and 2020, amounts associated with reinsurance benefits ceded to affiliated and unaffiliated insurance companies for life, annuity and disability products were as follows:
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Benefits ceded to affiliated insurance companies |
$ | 51,833 | $ | 67,090 | $ | 70,912 | ||||||
Benefits ceded to unaffiliated insurance companies |
330,256 | 352,052 | 308,504 | |||||||||
|
|
|
|
|
|
|||||||
Total benefits ceded |
$ | 382,089 | $ | 419,142 | $ | 379,416 | ||||||
|
|
|
|
|
|
ZIC
On November 17, 2006, and as amended on December 22, 2008, the Company entered into a reinsurance agreement with ZIC (ZIC Agreement) to reinsure the net amounts at risk for the GRIB options and other related life and annuity reserves related to the Companys DESTINATIONS product for policies issued from May 1, 2000 through February 28, 2003.
48
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
On September 30, 2013, the Company and ZIC entered into a reinsurance treaty in which the Company ceded 100% of its universal life business issued after January 1, 2010. The treaty is retrospective, covering all Independent Financial Advisors (IFA) in-force policies from inception.
To facilitate the sale of the CLP business to Aflac, ZALICO recaptured CLP net liabilities previously ceded to ZIC as of November 2, 2020. On a pre-tax basis, ZALICO recorded ceded premiums of $95.6 million (which included $82.2 million of cash transferred from ZIC equal to the net liabilities recaptured), $93.8 million of claims incurred, and other expenses of $1.9 million. In exchange, ZALICO paid ZIC a recapture fee of $88.7 million.
Further, the Company has several reinsurance agreements with ZIC covering the Companys individual life and group life, accidental death and disability businesses.
The Companys affiliated reinsurance transactions with ZIC have all been approved by the Illinois Department of Insurance.
Aflac
On March 19, 2020, an agreement was executed between the Companies, ZHCA, ZIC, Aflac and Aflac NY to sell the Companies CLP business. The transaction closed on November 2, 2020. Part of the transaction required the recapture of CLP net liabilities previously ceded to ZIC as of the closing date, as discussed above. Subsequently, the Companies ceded 100% of the in-force net CLP liabilities to Aflac and Aflac NY through reinsurance agreements dated as of November 2, 2020.
Protective Life Insurance Company
Effective September 3, 2003, ZALICO transferred certain of its business, as well as the capital stock of its wholly owned subsidiaries, to a former affiliate, FKLA. In a contemporaneous transaction, FKLA and ZALICO entered into a coinsurance agreement under which FKLA administers the business and the records of, and 100% reinsures, certain lines of business issued by ZALICO, including certain registered variable annuity contracts that are funded through the Companys Separate Account. These transfers were part of a larger transaction under which the capital stock of FKLA was sold to Bank One. On July 1, 2004, Bank One merged into JP Morgan Chase & Co., and FKLA changed its name to Chase Insurance.
On July 3, 2006, Protective Life purchased Chase Insurance. Effective April 1, 2007, Chase Insurance merged with and into Protective Life.
The initial ceding commission on the coinsurance agreement with Protective Life was $120 million. This initial ceding commission was not transferred to the Company from Protective Life, but rather was withheld from the assets transferred from the Company to Protective Life as part of the transferred coinsurance assets. As of December 31, 2022 and 2021, the remaining balance of the initial ceding commission amounted to $3.9 million and $4.3 million, respectively. The remaining balance of the initial ceding commission, net of tax, and the IMR related to the transferred coinsurance assets reflected in surplus, are being amortized into operations. Amortization of the initial ceding commission was approximately $434,000, $406,000 and $370,000 for the years ended December 31, 2022, 2021 and 2020, respectively. Amortization of the IMR related to the transferred coinsurance assets was approximately $244,000, $229,000 and $208,000 for the years ended December 31, 2022, 2021 and 2020, respectively.
As part of the coinsurance agreement with Protective Life, most reinsurance agreements with outside reinsurers were novated to Protective Life as part of the Purchase Agreement. As of December 31, 2022, and 2021, the Companys separate account assets subject to the coinsurance agreement with Protective Life were approximately $829,113,000 and $1,131,531,000, respectively.
49
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
A Security Trust Account was established for the exclusive benefit of the Company. The Security Trust Account is funded with assets equal to the general account statutory reserves adjusted for policy loans and interest maintenance reserves reinsured by Protective Life, adjusted on a quarterly basis. Protective Life is required to maintain the Security Trust Account until the Companys general account statutory reserves of the Reinsured Policies are $400,000,000 or less.
Fidelity Life Association
As part of the overall Protective Life transaction, the Company also entered into a reinsurance agreement with Fidelity Life Association (FLA) related to certain fixed-rate annuity liabilities. FLA is a mutual insurance company which was an affiliate of FKLA.
9. Capital and Surplus
The amount of dividends that can be paid by the Company to its stockholder without prior approval of the Illinois Department of Insurance is limited to the greater of (i) 10% of its statutory unassigned surplus or (ii) statutory net income from the preceding calendar year. A dividend paid that does not meet the above specifications is defined as an extraordinary dividend and requires advance approval from the Illinois Department of Insurance. The Company did not pay any dividends in 2022, 2021 or 2020. The Company has no surplus debentures. The Company also has no restrictions on surplus or any stock held by the Company for any special purposes.
10. Retirement Plans and Other Post Retirement Benefits Plans
Effective in 2004, the Companys employees began participating in a qualified, noncontributory defined benefit pension plan sponsored by ZAIC.
11. Separate Accounts
General Nature and Characteristics of Separate Accounts
The assets and liabilities of the Companys Separate Accounts represent segregated funds administered and invested by the Company for purposes of funding flexible payment, individual and group variable annuity contracts, market value adjusted deferred annuity contracts, variable supplemental contracts and individual and group variable life insurance contracts for the exclusive benefit of variable annuity contract holders and variable life insurance policy holders.
The Company receives fees from the Separate Accounts which consist of charges for mortality and expense risk, certain minimum guaranteed death benefits, certain guaranteed retirement benefits, record maintenance fees and other administrative charges. The Company also retains varying amounts of withdrawal charges to cover expenses in the event of early withdrawals by contract holders. The negative liability for transfers to Separate Accounts due or accrued amounted to $13,000 and $18,000 as of December 31, 2022 and 2021, respectively, which represents CARVM.
The assets and liabilities of the Separate Accounts are carried at fair value at December 31, 2022 and 2021.
The Company has marketed non-registered individual and group variable life policies and a series of individual and group variable annuity contracts. This business impacted premiums, separate accounts fees, net transfers to separate accounts, insurance taxes, licenses and fees and income tax expense. The non-registered products also have premium tax and deferred acquisition costs (DAC) tax expense load charges which are deducted from the contract holders premiums to compensate the Company for premium taxes and DAC tax expenses incurred by the Company.
50
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Under statutory accounting, transfers to the separate accounts are reported net of premium and DAC tax loads. There is a corresponding offset to the premium tax load in insurance taxes, licenses and fees.
Certain separate account products have guarantees that are backed by the general accounts. The Company has entered into reinsurance agreements for all of this guaranteed business. At the end of December 31, 2022, the general account of the Company had a maximum guarantee for the separate account liabilities of $42.5 billion. To compensate the general account for the risk taken, the separate account has paid risk charges as follows for the past five years:
(in thousands of dollars) | ||||
Risk Charges |
| |||
2022 |
$ | 386,896 | ||
2021 |
326,962 | |||
2020 |
462,893 | |||
2019 |
347,628 | |||
2018 |
327,395 |
As all of the guarantees have been reinsured, the above risk charges have also been ceded.
51
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
Information regarding the reserves included in the separate accounts of the Company as of December 31, 2022 and 2021 were as follows:
(in thousands of dollars) | 2022 | |||||||||||||||||||
Indexed | Nonindexed Guarantee Less Than/ Equal to 4% |
Nonindexed Guarantee More Than 4% |
Nonguaranteed Separate Accounts |
Total | ||||||||||||||||
Premiums, considerations or deposits for year ended December 31, 2022 |
$ | | $ | 40 | $ | | $ | 926,833 | $ | 926,873 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reserves at December 31, 2022 for accounts with assets at: |
||||||||||||||||||||
Fair value |
$ | | $ | 6,420 | $ | | $ | 15,689,032 | $ | 15,695,452 | ||||||||||
Amortized cost |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total reserves |
$ | | $ | 6,420 | $ | | $ | 15,689,032 | $ | 15,695,452 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
By withdrawal characteristics: |
||||||||||||||||||||
With market value adjustment |
$ | | $ | 6,420 | $ | | $ | | $ | 6,420 | ||||||||||
At book value without market value adjustment and with current surrender charge of 5% or more |
| | | | | |||||||||||||||
At fair value |
| | | 15,689,032 | 15,689,032 | |||||||||||||||
At book value without market value adjustment and with current surrender charge less than 5% |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal |
| 6,420 | | 15,689,032 | 15,695,452 | |||||||||||||||
Not subject to discretionary withdrawal |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | | $ | 6,420 | $ | | $ | 15,689,032 | $ | 15,695,452 | |||||||||||
|
|
|
|
|
|
|
|
|
|
52
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
(in thousands of dollars) | 2021 | |||||||||||||||||||
Indexed | Nonindexed Guarantee Less Than/ Equal to 4% |
Nonindexed Guarantee More Than 4% |
Nonguaranteed Separate Accounts |
Total | ||||||||||||||||
Premiums, considerations or deposits for year ended December 31, 2021 |
$ | | $ | 125 | $ | | $ | 876,901 | $ | 877,026 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reserves at December 31, 2021 for accounts with assets at: |
||||||||||||||||||||
Fair value |
$ | | $ | 6,505 | $ | | $ | 15,515,168 | $ | 15,521,673 | ||||||||||
Amortized cost |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total reserves |
$ | | $ | 6,505 | $ | | $ | 15,515,168 | $ | 15,521,673 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
By withdrawal characteristics: |
||||||||||||||||||||
With market value adjustment |
$ | | $ | 6,505 | $ | | $ | | $ | 6,505 | ||||||||||
At book value without market value adjustment and with current surrender charge of 5% or more |
| | | | | |||||||||||||||
At fair value |
| | | 15,515,168 | 15,515,168 | |||||||||||||||
At book value without market value adjustment and with current surrender charge less than 5% |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal |
| 6,505 | | 15,515,168 | 15,521,673 | |||||||||||||||
Not subject to discretionary withdrawal |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | | $ | 6,505 | $ | | $ | 15,515,168 | $ | 15,521,673 | |||||||||||
|
|
|
|
|
|
|
|
|
|
The following is a reconciliation of net transfers from the Companys separate accounts for the years ended December 31, 2022, 2021 and 2020:
(in thousands of dollars) | 2022 | 2021 | 2020 | |||||||||
Transfers as reported in the summary of operations of the separate accounts annual statement |
||||||||||||
Transfers to separate accounts |
$ | 1,020,466 | $ | 985,276 | $ | 664,017 | ||||||
Transfers from separate accounts |
(232,675 | ) | (259,448 | ) | (240,220 | ) | ||||||
|
|
|
|
|
|
|||||||
Net transfers to separate accounts |
787,791 | 725,828 | 423,797 | |||||||||
Reconciling adjustments |
||||||||||||
Experience rated refunds reinvested in separate accounts |
(86,097 | ) | (112,382 | ) | (44,280 | ) | ||||||
Change in termination value of separate accounts |
| | (49 | ) | ||||||||
Separate accounts trading gain (loss) |
6 | 5 | (2 | ) | ||||||||
Transfers required to support benefits |
(2,482 | ) | (1,983 | ) | 7,503 | |||||||
Fee income from premium taxes and other DAC tax charges |
2,764 | 1,528 | (9,903 | ) | ||||||||
Other |
349 | (98 | ) | (163 | ) | |||||||
|
|
|
|
|
|
|||||||
Net transfers to separate accounts as reported in the statement of operations |
$ | 702,331 | $ | 612,898 | $ | 376,903 | ||||||
|
|
|
|
|
|
53
Zurich American Life Insurance Company
Notes to Statutory Financial Statements
As of and For the Twelve Months Ended December 31, 2022, 2021 and 2020
12. Premiums Due and Deferred
Gross due and deferred premiums represent life insurance premiums due to be received from policyholders through the next respective policy anniversary dates. Net deferred and uncollected premiums represent only the portion of gross premiums related to mortality charges and interest.
Due and deferred premiums at December 31, 2022 and 2021 are as follows:
(in thousands of dollars) | 2022 | 2021 | ||||||||||||||
Gross | Net | Gross | Net | |||||||||||||
Ordinary renewal |
$ | 5,790 | $ | 5,492 | $ | 5,447 | $ | 5,214 | ||||||||
Group life |
6,452 | 6,452 | 8,088 | 8,088 | ||||||||||||
Accident and health |
8,875 | 8,875 | 8,184 | 8,184 | ||||||||||||
Nonadmitted assets |
(293 | ) | (293 | ) | (9 | ) | (9 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 20,824 | $ | 20,526 | $ | 21,710 | $ | 21,477 | |||||||||
|
|
|
|
|
|
|
|
13. Commitments and Contingencies
The Company is subject to lawsuits arising from the normal course of its business activities. These actions are in various stages of discovery and development, and some seek punitive as well as compensatory damages. In the opinion of management, the Company has not engaged in any conduct that should warrant the award of any material punitive or compensatory damages. The Company intends to defend vigorously its position in each case, and management believes that, while it is not possible to predict the outcome of such matters with absolute certainty, ultimate disposition of these proceedings should not have a material adverse effect on the Companys financial position.
14. Subsequent Events
On March 28, 2023, the Company received a capital contribution of $12.0 million from ZHCA.
The Company has evaluated subsequent events through April 24, 2023, the date the financial statements were available to be issued.
54