Allianz Life Insurance Japan has launched its first variable annuity product, to cater the long term retirement needs of the customers.

According to the company, the new product offers a guaranteed minimum accumulation benefit, regardless of market performance. Nikko Cordial Securities serves as the distribution partner for this product.

The company said that the first variable annuity product is a minimum accumulation benefit guaranteed, single premium variable annuity. It entails a ‘step-up’ feature for the guaranteed minimum accumulation benefit and death benefit in accordance with investment performance during the accumulation period. The investment performance during the accumulation period is evaluated daily.

When the account value reaches 110%, 115%, 120%, 125%, 130%, 135%, 140%, 145% and 150% of the benefit base, the guaranteed minimum for the accumulation benefit and death benefit is stepped up and locked in. If the account value exceeds 150% of the benefit base at the end of the accumulation period, the accumulation benefit becomes the same as the account value.

Uwe Michel, chairman and representative director of Allianz Life Japan, said: We are committed to building a long term sustainable business in Japan by providing an innovative range of variable annuities in partnership with financial institutions, and expanding our insurance product range to respond to the broad range of customer needs in Japan.